FORT COLLINS, Colo., Jan. 30, 2012—Advanced Energy Industries, Inc. (Nasdaq:AEIS) today announced financial results for the fourth quarter ended December 31, 2011. The company posted fourth quarter sales of $112.5 million compared to $148.7 million in the fourth quarter of 2010 and $128.5 million in the third quarter of 2011. Loss from continuing operations was $2.6 million or $0.06 per diluted share. On a non-GAAP basis, income generated from operations was 1.0% of sales, and earnings from our continuing operations on a per share basis was $0.01. The non-GAAP measures exclude the impact of the $4.2 million restructuring charge recorded in the fourth quarter. A reconciliation of non-GAAP income from operations and per share earnings is provided in the tables. We also generated $6.3 million in cash during the quarter before the share repurchase of $18 million.

"During the fourth quarter we made great strides executing on our strategic plan by consolidating facilities, redesigning incentive plans and repurchasing stock and we are well on our way to achieving our initial goals and exceeding our cost savings targets," said Garry Rogerson, chief executive officer. "While market conditions remain uncertain in the near-term, our focus is centered on accomplishing the objectives we laid out at our analyst day to realign our cost structure, accelerate revenue growth and effectively utilize our cash. Once implemented, these actions should improve our profitability and deliver exceptional value to our shareholders." 

Thin Films Business Unit

Solar Energy Business Unit

Income/Loss from Continuing Operations

Restructuring Charge

First Quarter 2012 Guidance

•   Sales of $95 million to $105 million
•   Non-GAAP per share earnings of approximately break-even

Fourth Quarter 2011 Conference Call

About Advanced Energy

Forward-Looking Language

About Advanced Energy

Advanced Energy's Global Customer Satisfaction Recognized by Oerlikon With 2011 Supplier Award

FORT COLLINS, Colo, Nov. 29, 2011—Advanced Energy Industries, Inc. (Nasdaq:AEIS) announced today that it has received the 2011 Supplier Award for On-Time Delivery from OC Oerlikon Corporation AG, a leading global supplier of PVD sputter systems. The award was presented at Oerlikon's Supplier Day held last week at the company's headquarters in Pfäffikon, Switzerland.

Yuval Wasserman, president of AE Thin Films, said, "Our most recent supplier award further recognizes Advanced Energy's commitment to customer satisfaction around the world. Our teams in Europe, Asia and North America work in close cooperation with our global customers to ensure consistent delivery so that they can meet high-volume demand from end users. Between February and October of this year, we achieved perfect performance of 100 percent on-time delivery to Oerlikon Systems, which is within the Advanced Technology Segment. This result exemplifies the responsiveness made possible by our best-in-class global operations, and the strong customer relationships we've built over our three decades of power conversion innovation."

Oerlikon Systems produces equipment for advanced nanotechnology, semiconductors and deposition equipment for the optical disc industry used by the world's leading end users. Advanced Energy supplies industry-leading DC and RF power products that are used in Oerlikon's multi-chamber cluster tools for a variety of semiconductor processing applications.

About Oerlikon Group

Oerlikon (SIX:OERL) is a leading high-tech industrial group specializing in machine and plant engineering. The Company is a provider of innovative industrial solutions and cutting-edge technologies for textile manufacturing, drive, vacuum, thin film, coating, and advanced nanotechnology. A Swiss company with a tradition going back over 100 years, Oerlikon is a global player with more than 17,000 employees at over 150 locations in 38 countries and sales of CHF 3.6 billion in 2010. The Company invested in 2010 CHF 239 million in R&D, with over 1 200 specialists working on future products and services. In most areas, the operative businesses rank either first or second in their respective global markets.

About Advanced Energy

Advanced Energy Announces $75 Million Share Repurchase Program

FORT COLLINS, Colo., Nov. 21, 2011—Advanced Energy Industries, Inc. (Nasdaq:AEIS) today announced that its Board of Directors has authorized the company to repurchase up to $75 million of its common stock over the next 12 months. Purchases under the program may be made from time-to-time in the public or private markets, through block trades, Rule 10b5-1 trading plans or other available means and may include the use of derivative contracts and structured share repurchase agreements. There is no minimum number of shares to be repurchased under the program, and it may be suspended or discontinued at any time. As of September 30, 2011, the company had approximately $155 million in cash, cash equivalents and marketable securities and approximately 43.6 million common shares outstanding.

"Current market valuations combined with our strong cash position and projected cash flow generation afford us the leverage to initiate this repurchase program while still maintaining flexibility for other initiatives," said Garry Rogerson, CEO. "This repurchase program is an important element of our strategy for returning value to our shareholders. We expect the program to be accretive to earnings going forward."

About Advanced Energy

Forward-Looking Language

Advanced Energy Industries CEO to Ring The NASDAQ Stock Market Opening Bell

FORT COLLINS, Colo., Nov. 18, 2011—Advanced Energy Industries, Inc. (Nasdaq:AEIS) will visit the NASDAQ MarketSite in New York City's Times Square. In honor of the occasion, CEO Garry Rogerson, CFO Danny Herron, and Thin-Films Business Unit President Yuval Wasserman will ring the Opening Bell.

Where: NASDAQ MarketSite – 4 Times Square – 43rd & Broadway – Broadcast Studio
When: Monday, November 21st, 2011 – 9:15 a.m. to 9:30 a.m. EST

About Advanced Energy

Offering Greater Performance and System Intelligence at Lower Installation Costs

About Advanced Energy

For more information, contact:

Advanced Energy Inverters Installed at 35 MW Utility-Scale California Solar Plant Project

Solaron 500 kW Inverters Selected by Cupertino Electric Based on Industry-Leading LCOE

About Advanced Energy

About Cupertino Electric, Inc.

FORT COLLINS, Colo., Nov. 1, 2011—Advanced Energy Industries, Inc. (Nasdaq:AEIS) today announced financial results for the third quarter ended September 30, 2011. The company posted third quarter sales of $128.5 million, operating income of 8.3% of sales and diluted earnings per share from continuing operations of $0.16. On a non-GAAP basis, income generated from operations was 10.7% of sales and earnings from our continuing operations on a per share basis were $0.21. The non-GAAP measures exclude the impact of the previously-announced $3.1 million restructuring charge recorded in the third quarter. A reconciliation of non-GAAP income from operations and per share earnings is provided in the tables.

"Tenuous macroeconomic conditions coupled with continuing declines in capital equipment spending pressured our Thin Films business this quarter. We continue to see revenue growth in our Solar Energy business as orders increased and the deployment of our previously announced utility scale projects continued," said Garry Rogerson, chief executive officer. "By taking pro-active measures to re-align our resources and cost structure, Advanced Energy will be better positioned to make strategic investments that we expect will extend our leadership and improve profitability in the future. During the quarter, cash increased by $9 million as working capital declined during the quarter."

Thin Films Business Unit

Thin Films business unit sales were $76.8 million versus $103.6 million in the third quarter of 2010. On a sequential basis, Thin Films sales declined 21.1% from $97.3 million in the second quarter of 2011. Industry conditions across most of the company's thin films end markets weakened this quarter. Semiconductor equipment sales slowed as manufacturers limited purchases due to low fab utilization rates. The thin film renewables market continued to experience panel overcapacity and pricing pressure, while the flat panel display market is undergoing a pause in investment as capacity comes on line.

Solar Energy Business Unit

Solar Energy business unit sales were $51.7 million in the quarter versus $37.4 million in the same period of 2010. On a sequential basis, Solar Energy sales increased 26.7% from $40.8 million in the second quarter of 2011. Despite the solar panel industry's struggle with significant oversupply and ongoing price declines, inverter sales grew once again this quarter due to utility-scale shipments from large projects wins announced earlier this year.

Income from Continuing Operations

Income from continuing operations was $7.2 million or $0.16 per diluted share, compared to income from continuing operations of $17.6 million or $0.40 per diluted share in the same period last year. Income from continuing operations was $13.5 million or $0.31 in the second quarter of 2011. On a non-GAAP basis, excluding the impact of the restructuring charge, continuing operations generated income for the quarter of $9.3 million or $0.21 per share.

Restructuring Charge

The restructuring charge incurred in the quarter related to the restructuring plan that was announced on September 28, 2011. Under the first phase of the plan, Advanced Energy will align its engineering resources with the geographic footprint of its customer base. By localizing R&D within the major geographies it serves, the company will improve its time to market and distance to key customers, creating a more highly-focused and responsive development team. The company will also transition the manufacture of certain solar inverter subcomponents to its Shenzhen factory. This will lower product costs for its Solar Energy business worldwide and enable regional fulfillment for complete products in the growing Asian market. The anticipated savings from the restructuring are approximately $6 million annually for the first phase.

The second phase will be implemented over the next 12 to 18 months as the company reduces its cost structure, closes facilities and relocates certain functions to different regions worldwide. As a result, the company anticipates further charges in the amount of $8 to $12 million, principally for space consolidation, and another $1 million in additional severance costs over this timeframe. Once complete, these two phases of the restructuring plan, along with other cost savings initiatives and margin improvements, are expected to deliver annual savings of approximately $16 to $20 million.

Fourth Quarter 2011 Guidance

The Company anticipates fourth quarter 2011 results from continuing operations, to be within the following ranges:

• Sales of $105 million to $120 million
• Non-GAAP earnings per share of approximately breakeven

Third Quarter 2011 Conference Call

Management will host a conference call tomorrow, Wednesday, November 2, 2011, at 8:30 a.m. Eastern Daylight Time to discuss Advanced Energy's financial results. Domestic callers may access this conference call by dialing 800-706-7748. International callers may access the call by dialing 617-614-3473. Participants will need to provide a conference pass code 72488976. For a replay of this teleconference, please call 888-286-8010 or 617-801-6888, and enter the pass code 48571613. The replay will be available for two weeks following the conference call. A webcast will also be available on the Investor Relations web page at http://ir.advanced-energy.com.

About Advanced Energy

Advanced Energy is a global leader in innovative power and control technologies for high-growth, thin-films manufacturing and solar-power generation. Founded in 1981, Advanced Energy is headquartered in Fort Collins, Colorado, with dedicated support and service locations around the world. For more information, go to www.advanced-energy.com.

This release includes non-GAAP operating, net income and earnings per share data. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Advanced Energy believes that these non-GAAP measures provide useful information to management and investors regarding financial and business trends relating to its financial condition and results of operations. Additionally, the Company believes that these non-GAAP measures, in combination with its financial results calculated in accordance with GAAP, provides investors with additional perspective. The Company further believes that the items excluded from certain non-GAAP measures do not accurately reflect the underlying performance of its continuing operations for the period in which they are incurred, even though some of these excluded items may be incurred and reflected in the Company's GAAP financial results in the foreseeable future. The use of non-GAAP measures have limitations in that they do not reflect all of the amounts associated with its results of operations as determined in accordance with GAAP and these measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.

For additional information on the items excluded from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

Forward-Looking Language

The Company's expectations with respect to guidance to financial results for the fourth quarter ending December 31, 2011 and statements that are not historical information are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: the effects of global macroeconomic conditions upon demand for our products, the volatility and cyclicality of the industries the company serves, particularly the semiconductor industry, the continuation of RPS (renewable portfolio standards), the timing and availability of incentives and grant programs in the US and Europe related to the renewable energy market, renewable energy project delays resulting from solar panel price declines and increased competition in the solar inverter equipment market, the timing of orders received from customers, the company's ability to realize benefits from cost improvement efforts and any restructuring plans; the ability to source materials and manufacture products, and unanticipated changes to management's estimates, reserves or allowances. These and other risks are described in Advanced Energy's Form 10-K, Forms 10-Q and other reports and statements filed with the Securities and Exchange Commission. These reports and statements are available on the SEC's website at www.sec.gov. Copies may also be obtained from Advanced Energy's website at www.advancedenergy.com or by contacting Advanced Energy's investor relations at 970-407-6555. Forward-looking statements are made and based on information available to the company on the date of this press release. The company assumes no obligation to update the information in this press release.
 

  ADVANCED ENERGY INDUSTRIES,    INC.   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS    (UNAUDITED)   (in thousands, except per    share data)                                           Three Months Ended             Nine Months Ended                                  ----------------------------------  ----------------------                                       September 30,       June 30,        September 30,                                  ----------------------  ----------  ----------------------                                     2011        2010        2011        2011        2010                                  ----------  ----------  ----------  ----------  ----------   SALES                           $ 128,498   $ 140,966   $ 138,154   $ 404,304   $ 310,760   COST OF SALES                      79,651      80,276      82,777     238,035     176,304                                  ----------  ----------  ----------  ----------  ----------   GROSS PROFIT                       48,847      60,690      55,377     166,269     134,456                                       38.0%       43.1%       40.1%       41.1%       43.3%   OPERATING EXPENSES:    Research and development          17,592      16,672      17,137      50,591      41,329    Selling, general and     administrative                   16,473      20,545      20,001      57,379      49,955    Restructuring charges              3,119                               3,119    Amortization of intangible     assets                              989       1,177         921       2,831       1,945                                  ----------  ----------  ----------  ----------  ----------      Total operating expenses        38,173      38,394      38,059     113,920      93,229                                  ----------  ----------  ----------  ----------  ----------   Operating income                   10,674      22,296      17,318      52,349      41,227     Other income (loss), net           (259)       1,224          92         496       1,828                                  ----------  ----------  ----------  ----------  ----------   Income from continuing    operations before income    taxes                             10,415      23,520      17,410      52,845      43,055   Provision for income taxes          3,244       5,964       3,898      13,396       9,192                                  ----------  ----------  ----------  ----------  ----------   INCOME FROM CONTINUING    OPERATIONS, NET OF INCOME    TAXES                              7,171      17,556      13,512      39,449      33,863   Income (loss) from    discontinued operations, net    of income taxes                    (579)       2,392          74       (365)       5,921                                  ----------  ----------  ----------  ----------  ----------    NET INCOME                        $ 6,592    $ 19,948    $ 13,586    $ 39,084    $ 39,784                                  ==========  ==========  ==========  ==========  ==========   Basic weighted-average common    shares outstanding                43,535      43,254      43,571      43,515      42,711   Diluted weighted-average    common shares outstanding         43,819      43,849      44,187      44,056      43,293   EARNINGS PER SHARE:    CONTINUING OPERATIONS:      BASIC EARNINGS PER SHARE        $ 0.16      $ 0.41      $ 0.31      $ 0.91      $ 0.79      DILUTED EARNINGS PER SHARE      $ 0.16      $ 0.40      $ 0.31      $ 0.90      $ 0.78    DISCONTINUED OPERATIONS      BASIC EARNINGS PER SHARE      $ (0.01)      $ 0.06      $ 0.00    $ (0.01)      $ 0.14      DILUTED EARNINGS PER SHARE    $ (0.01)      $ 0.05      $ 0.00    $ (0.01)      $ 0.14    NET INCOME:      BASIC EARNINGS PER SHARE        $ 0.15      $ 0.46      $ 0.31      $ 0.90      $ 0.93      DILUTED EARNINGS PER SHARE      $ 0.15      $ 0.45      $ 0.31      $ 0.89      $ 0.92  

  ADVANCED ENERGY    INDUSTRIES, INC.   CONDENSED CONSOLIDATED    BALANCE SHEETS   (in thousands)                                September   December                                  30,         31,                                  2011        2010                               ----------  ----------   ASSETS                       UNAUDITED   AUDITED   Current assets:    Cash and cash equivalents   $ 132,253   $ 130,914    Marketable securities          22,669       9,640    Accounts receivable, net      132,048     119,893    Inventories, net               92,822      77,593    Deferred income taxes           7,689       7,510    Income taxes receivable         6,570       6,061    Other current assets           12,393      10,156                               ----------  ----------   Total current assets           406,444     361,767   Property and equipment,    net                            40,837      34,569   Deposits and other               8,868       8,874   Goodwill and intangibles,    net                            92,105      96,781   Deferred income tax    assets, net                     5,176       3,166                               ----------  ----------   Total assets                 $ 553,430   $ 505,157                               ==========  ==========   LIABILITIES AND    STOCKHOLDERS' EQUITY   Current liabilities:    Accounts payable             $ 50,559    $ 56,185    Other accrued expenses         45,999      46,140                               ----------  ----------   Total current liabilities       96,558     102,325    Long-term liabilities           31,775      28,864                               ----------  ----------   Total liabilities              128,333     131,189    Stockholders' equity           425,097     373,968                               ----------  ----------   Total liabilities and    stockholders' equity        $ 553,430   $ 505,157                               ==========  ==========  

  ADVANCED ENERGY    INDUSTRIES, INC.   SEGMENT INFORMATION    (UNAUDITED)   (in thousands)                                   Three Months Ended            Nine Months Ended                           --------------------------------  ----------------------                               September 30,       June 30,       September 30,                           ---------------------  ---------  ----------------------                              2011       2010        2011       2011        2010                           ---------  ----------  ---------  ----------  ----------   SALES:    Thin Films              $ 76,764   $ 103,616   $ 97,331   $ 274,194   $ 256,736    Solar Energy              51,734      37,350     40,823     130,110      54,024                           ---------  ----------  ---------  ----------  ----------      Total Sales            128,498     140,966    138,154     404,304     310,760                           =========  ==========  =========  ==========  ==========    OPERATING INCOME:   Thin Films               $ 16,015               $ 20,042    $ 60,881   Solar Energy                1,259                    321       4,092                           ---------              ---------  ----------   Total segment    operating income          17,274                 20,363      64,973   Corporate expenses        (6,600)                (3,045)    (12,624)   Other income, net           (259)                     92         496                           ---------              ---------  ----------   Income from continuing    operations before    income taxes            $ 10,415               $ 17,410    $ 52,845                           =========              =========  ==========  

  ADVANCED ENERGY INDUSTRIES, INC.   SELECTED OTHER DATA (UNAUDITED)   (in thousands)    Reconciliation of Non-GAAP measure - income      Three    from operations                                Months   without restructuring charge                     Ended                                                  ---------                                                  September                                                     30,                                                     2011                                                  ---------   Operating Income, as reported                   $ 10,674   Add back:    Restructuring charge                              3,119                                                  ---------   Income from operations without resturcturing    charge                                         $ 13,793                                                  =========                                                     Three   Reconciliation of Non-GAAP measure - income     Months    without restructuring charge                    Ended                                                  ---------                                                  September                                                     30,                                                     2011                                                  ---------   Income from continuing operations, net of    tax, as reported                                $ 7,171   Add back:    Restructuring charge, net of tax benefit          2,136                                                  ---------   Income without restructuring charge              $ 9,307                                                  =========    Reconciliation of Non-GAAP measure - per    share earnings from                             Three   continuing operations without restructuring     Months    charge                                          Ended                                                  ---------                                                  September                                                     30,                                                     2011                                                  ---------   Diluted earnings per share from continuing    operations, as reported                          $ 0.16   Add back:    per share impact of restructuring charge,     net of tax benefit                                0.05                                                  ---------   Per share earnings from continuing operations    without restructuring charge                     $ 0.21                                                  =========