FORT COLLINS, Colo., April 23, 2009—Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced financial results for the first quarter ended March 31, 2009. Sales for the first quarter of 2009 were $32.6 million, representing a 63.3% decline from $88.9 million in the same quarter a year ago and a 51.7% decline from $67.5 million in the fourth quarter of 2008. Sales were lower across all of the Company's markets, as the global financial crisis reduced consumer and commercial spending, resulting in limited capital expansion in our markets. Our book to bill ratio for the quarter increased sequentially to 0.87:1, from quarter's 0.70:1, from the fourth quarter of 2008, though on a much lower revenue base.

Our gross margins in the first quarter were impacted by the lower revenues, resulting in lower absorption of manufacturing overhead in the first quarter. Margins fell to 19.6%, down from 40.3% in the first quarter of 2008 and 27.2% in the fourth quarter of 2008.

During the quarter we implemented a restructuring plan that resulted in a charge of $3.4 million or $0.08 per share related to a reduction in workforce. Due to the current economic downturn and a significant decline in the Company's market capitalization, we recorded an estimated non-cash impairment charge in the first quarter of $63.3 million or $1.51 per share related to our goodwill. These charges do not affect our cash balance, liquidity, or operating cash flow.

The result was a net loss for the first quarter of 2009 of $79.8 million, or $1.90 loss per diluted share, compared to net income of $6.0 million, or $0.13 earnings per diluted share, in the first quarter of 2008. The quarterly net loss increased from $19.0 million, or $0.45 per diluted share, in the fourth quarter of 2008. Our balance sheet remained strong as we closed the quarter with $173.4 million of cash and investments.

"This was an exceptionally difficult quarter as we experienced revenue levels not seen since the late 1990s. We responded once again by reducing our cost structure, yet maintaining our critical technology development and product initiatives. Our healthy balance sheet remains a key strategic asset, which we plan to leverage during these difficult times," said Hans Betz, president and CEO. "Although we experienced a significant drop in all of our markets during the quarter and visibility remains limited, we have seen some positive signs of investment in some markets, which we hope will provide some near-term stability. We remain committed to our strategy of being the strong and healthy supplier of choice to all of our OEM and end user customers."

###

                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)


                                                    Three Months Ended
                                                   --------------------
                                                   March 31,    December 31,
                                                  -----------   ------------
                                                 2009     2008       2008
                                                 ----     ----       ----

    Sales                                     $32,627  $88,887    $67,525
    Cost of sales                              26,239   53,039     49,128
                                               ------   ------     ------
    Gross profit                                6,388   35,848     18,397

    Operating expenses:
         Research and development              11,098   13,085     13,424
         Selling, general and administrative    9,395   14,468      9,513
         Amortization of intangible assets        222      240        257
         Impairment of goodwill                63,260        -          -
         Restructuring charges                  3,396      674      1,898
                                                -----    -----      -----
              Total operating expenses         87,371   28,467     25,092

    Income (loss) from operations             (80,983)   7,381     (6,695)

    Other income, net                             282      905        553
                                                 ----     ----       ----
    Income (loss) from continuing operations
     before income taxes                      (80,701)   8,286     (6,142)
    Provision (benefit) for income taxes         (938)   2,320     12,835
                                                 ----    -----     ------

    Net income (loss)                        $(79,763)  $5,966   $(18,977)
                                             ========   ======   ========

    Basic earnings (loss) per share            $(1.90)   $0.13     $(0.45)

    Diluted earnings (loss) per share          $(1.90)   $0.13     $(0.45)

    Basic weighted-average common shares
     outstanding                               41,881   44,662     41,832

    Diluted weighted-average common shares
     outstanding                               41,881   45,065     41,832



                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in thousands)

                                                   March 31,    December 31,
                                                     2009           2008
                                                     ----           ----

    ASSETS

    Current assets:
         Cash and cash equivalents                $115,409       $116,448
         Marketable securities                      29,588         33,266
         Accounts receivable, net                   35,578         56,549
         Inventories, net                           46,024         46,659
         Deferred income taxes                      12,781         13,253
         Other current assets                        4,649          5,324
                                                     -----          -----
    Total current assets                           244,029        271,499

    Property and equipment, net                     29,960         31,322

    Long-term investments                           28,418         30,401
    Deposits and other                               7,557          7,505
    Goodwill and intangibles, net                    6,009         72,918
    Customer service equipment, net                      -             23
    Deferred income tax assets, net                  7,955          6,969
                                                     -----          -----
    Total assets                                  $323,928       $420,637
                                                  ========       ========


    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
         Accounts payable                           $6,087         $8,005
         Other accrued expenses                     21,843         23,928
                                                    ------         ------
    Total current liabilities                       27,930         31,933

    Long-term liabilities                           10,653         12,155
                                                    ------         ------

    Total liabilities                               38,583         44,088

    Stockholders' equity                           285,345        376,549
                                                   -------        -------
    Total liabilities and stockholders' equity    $323,928       $420,637
                                                  ========       ========

FORT COLLINS, Colo., April 14, 2009—Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced that it has been recognized by both Frost & Sullivan and EE Times for AE's Solaron^® platform of grid-tie, photovoltaic (PV) inverters for commercial and utility-scale installations.

Frost & Sullivan North American Product Innovation Award

Based on Frost & Sullivan's recent analysis of non-residential, grid-tie inverter markets, the research firm recognized the Solaron platform with a Best Practices Award—specifically, the North American Product Innovation of the Year Award.

G. Vimal Krishna Kumar, Frost & Sullivan Research Analyst for the power supplies market, noted "Advanced Energy's transformerless inverter represents a paradigm shift in the North American solar inverter market. The inverter brings significant benefits such as increased energy harvest, increased system reliability, simplified installation, management and best price to performance ratio in the industry."

Frost & Sullivan Best Practices Awards recognize companies across global markets for outstanding achievement and superior performance in leadership, technological innovation, customer service and strategic product development.

EE Times ACE Award

EE Times' panel of 15 judges from academia, industry and Wall Street selected this year's ACE award winners—including AE's Solaron inverter platform which received the Most Innovative Renewable Energy Award.

The EE Times Annual Creativity in Electronics (ACE) Awards honor the creators of technology who demonstrate leadership and innovation in the global industry and who shape the way people work, live and play.

The Solaron Portfolio

The Solaron portfolio is available in North America, Asia and the European Union. The platform includes 333 kW and 500 kW inverters with robust controls, patented, soft-switching technology, NRTL-certification to UL 1741, wide MPP (maximum power point) tracking window as well as remote monitoring of the PV system from anywhere at anytime. The unique Solaron RPT^TM (Remote PV Tie) accessory can reduce balance-of-system costs by allowing Solaron inverters to be up to 610 meters (2000 feet) from PV arrays, yet use fewer cables. Solaron service solutions deliver a lifetime of support—from installation verification and training, to warranty periods of up to 20 years through our SafeGuard^SM customized support options.

To learn more about AE's expanding Solaron line of PV inverters, visit www.aesolaron.com.

Advanced Energy is a global leader in innovative power and control technologies for high-growth, thin-film manufacturing and solar-power generation. Specifically, AE targets solar grid-tie inverters, solar cells, semiconductors, flat panel displays, data storage products, architectural glass and other advanced applications.

AE's solutions portfolio includes precise, flexible power systems; reliable gas and liquid flow-management systems; accurate thermal instruments and comprehensive global support services. Leveraging this portfolio and technology leadership, AE creates solutions aimed at maximizing process impact, improving productivity and lowering cost of ownership for its customers, including original equipment manufacturers (OEMs) and end-users around the world.

AE operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors. Founded in 1981, AE is a publicly held company traded on Nasdaq Global Market under the symbol AEIS. For more information, go to www.advanced-energy.com

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. For more information, go to http://www.frost.com.

 

FORT COLLINS, Colo., April 13, 2009—Advanced Energy Industries, Inc. (NasdaqGM: AEIS) will release first quarter 2009 financial results on Thursday, April 23, 2009. Management's quarterly company update will also be held on April 23, 2009, beginning at 3:00 p.m. Mountain Time/5:00 p.m. Eastern Time.

To participate in the live conference call, dial (888) 713-4717 approximately five minutes prior to the start of the meeting, and an operator will connect you. International participants should dial (816) 650-2836. All participants will need to provide the operator with the conference pass code 94779571 which has been reserved for this call.

A live and archived webcast of the call will also be available on the company’s website. To access the webcast, visit the Investor Relations section of Advanced Energy’s corporate website at http://ir.advanced-energy.com, and link to the Q109 Webcast on the Investor Relations Home Page. The archived webcast will be available at the same location approximately two hours following the end of the live event.

A telephone replay will be available for 48 hours following the webcast. To access the replay, dial (800) 642-1687 or (706) 645-9291 and enter conference pass code 94779571.

Advanced Energy develops innovative power and control technologies that drive high-growth, plasma thin-film manufacturing processes worldwide, including semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications. Advanced Energy also develops grid connect inverters for the solar energy market.

AE is a publicly held company traded on Nasdaq Global Market under the symbol AEIS. For more information, go to http://www.advanced-energy.com.

 

FORT COLLINS, Colo., April 7, 2009—Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced that Yuval Wasserman has been named chief operating officer (COO), effective April 3, 2009. In his new position, Mr. Wasserman will assume the responsibility for worldwide operations in addition to his existing responsibilities with oversight over sales, service and marketing.

“We are delighted that Yuval is assuming this critically important role. Since joining Advanced Energy in August of 2007, he has proven to be an integral part of our team. His vast industry experience that spans over 25 years, his leadership strength and intimate knowledge of the company and the markets we serve will prove invaluable to Advanced Energy,” said Dr. Hans Betz, president and CEO.

“I am honored and excited by the opportunity to lead the worldwide operations of Advanced Energy, as we drive for greater excellence in our markets,” added Mr. Wasserman.

Prior to joining Advanced Energy, Mr. Wasserman was President and CEO of Tevet Process Control Technologies Inc.(acquired by Nanometrics). He also held senior executive and general management positions at Boxer Cross (acquired by Applied Materials), Fusion Systems, AG Associates, and National Semiconductors.

About Advanced Energy

Advanced Energy is a global leader in innovative power and control technologies for high-growth, thin film manufacturing and solar power generation. Specifically, AE targets solar grid-tie inverters, solar cells, semiconductors, flat panel displays, data storage products, architectural glass and other advanced applications.

FORT COLLINS, Colo., March 12, 2009—Advanced Energy Industries, Inc. (NasdaqGM: AEIS) announced today a reduction in workforce and other cost reductions, as we indicated on our fourth quarter 2008 earnings call. In response to the deteriorating economic conditions and weakening demand from the company’s end markets, the company is reducing its global workforce by approximately 330 people or 22% of total headcount across all functional areas and geographies and lowering the salaries of management and executive officers by an additional 5%, totaling 15% overall, effective April 1, 2009. “While we were hopeful that conditions would begin to stabilize, the markets we serve have nonetheless continued to deteriorate,” said Dr. Hans Betz, president and chief executive officer. “This has led us to take additional cost reduction measures in order to streamline our operations, and enable us to continue to focus on key market opportunities.”

These cost reductions are expected to reduce salary costs by approximately $8.2 million annually. Today’s measures along with other discretionary spending reductions, will result in approximately $21 million of savings over the next three quarters, and will lower the company’s breakeven point to $55 million by the end of the second quarter of 2009. Total restructuring charges, including those from cost reductions announced in December, will be approximately $3.8 million in the first quarter of 2009 and approximately $800,000 in the second quarter of 2009.

Advanced Energy is a global leader in innovative power and control technologies for high-growth, thin-film manufacturing and solar power generation. Specifically, AE targets solar grid-tie inverters, solar cells, semiconductors, flat panel displays, data storage products, architectural glass and other advanced applications.

Certain statements contained herein 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 volatility and cyclicality of the industries the company serves, particularly the semiconductor industry, the timing of orders received from customers, the company's ability to realize cost improvement benefits from the global operations initiatives underway, 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.advanced-energy.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.  
 

Fort Collins, Colo., February 23, 2009—Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the fourth quarter and year ended December 31, 2008. Sales for the fourth quarter of 2008 were $67.5 million, representing a 19.5% decline from $83.8 million in the same quarter a year ago and a 20.1% decline from $84.5 million in the third quarter of 2008. The weak economy affected all of our markets, led by semiconductor equipment, which experienced a revenue decrease of 20.2% sequentially. Our book to bill ratio for the quarter was 0.7:1.

 

Sales to our non-semiconductor markets represented 48.3% of total sales for the quarter, driven by continued strength from the solar market, which represented 23.6% of total sales. Service revenues were 18.4% of total sales, down 20.5% sequentially, primarily due to softness in the semiconductor market, where the majority of our installed base resides.

 

Gross margin for the fourth quarter was 27.2%, down from 39.1% in the fourth quarter of 2007, and 41.7% in the third quarter of 2008. Margins were lower due to a $5.1 million charge to cost of goods sold for excess and obsolete inventory, which impacted gross margin by 7.6%, as well as lower revenues and the resulting lower absorption of manufacturing overhead.

 

We reduced operating expenses 15.7% sequentially in the quarter, as we implemented additional cost reduction measures including discretionary spending controls, global shutdown weeks during the holiday season and workforce reductions.
During the fourth quarter of 2008, we also recorded a non-cash charge of $18.0 million, or $0.43 per share, for income taxes related to a valuation allowance against our deferred tax assets. This resulted in a net loss for the fourth quarter of 2008 of $19.0 million, or $0.45 per diluted share, compared to net income of $4.2 million, or $0.09 per diluted share, in the fourth quarter of 2007. Net income also decreased sequentially from $5.4 million, or $0.13 per diluted share, in the third quarter of 2008.

 

For the full year 2008, sales were $328.9 million, a 14.5% decrease from $384.7 million in 2007. The primary driver of the reduction in sales was a 39.0% drop in revenues to the semiconductor equipment market, partially offset by a 118.7% increase in revenues to the solar market. Net loss from continuing operations for 2008 was $1.8 million, or $0.04 per diluted share, compared to net income of $34.4 million, or $0.75 per diluted share, in 2007. During 2008, we generated $24.7 million in cash from operations to end the year with $180.1 million in cash, cash equivalents and investments, including auction rate securities of $30.4 million.

 

“In 2008, non-semiconductor revenue grew faster and became a larger part of total revenue. In an otherwise difficult environment during the year, our strategy of targeting a diverse group of markets for our leading power conversion technology proved to be effective,” said Hans Betz, president and CEO. “Though overall revenues declined year-over-year, we doubled our solar revenue, grew our services business and introduced successful new products such as the Solaron® 500KW inverter, while maintaining a healthy balance sheet with a strong cash position. As the year ended with extremely challenging economic conditions across all industries and very limited visibility, we took quick, decisive action to implement major cost reductions.

 

Going forward, we continue to see a weak economic outlook that may persist for some time. We will take additional cost reduction measures in the future as needed to drive our breakeven point even lower and address further deterioration in our markets. We remain focused on our core market and technology initiatives to ensure Advanced Energy is well positioned to take market share during the downturn and is poised for tremendous leverage when our markets recover.”

The Company anticipates first quarter 2009 results to be within the following ranges:

• Sales of $30.0 million to $36.0 million
• Loss per share of $0.46 to $0.53

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)

                                                             Twelve Months
                                       Three Months Ended        Ended
                                       ------------------    -------------
                                          December 31,        December 31,
                                          ------------        ------------
                                          2008     2007      2008      2007
                                          ----     ----      ----      ----

    Sales                              $67,525  $83,836  $328,918  $384,699
    Cost of sales                       49,128   51,017   204,136   221,890
                                        ------   ------   -------   -------
    Gross profit                        18,397   32,819   124,782   162,809

    Operating expenses:
         Research and development       13,424   12,510    54,952    50,393
         Selling, general and
          administrative                 9,513   16,075    52,273    62,179
         Amortization of intangible
          assets                           257      218       946     1,010
         Restructuring charges           1,898     (219)    3,487     3,287
                                         -----     ----     -----     -----
              Total operating
               expenses                 25,092   28,584   111,658   116,869

    Income (loss) from operations       (6,695)   4,235    13,124    45,940

    Other income, net                      553    1,443     2,883     4,810
                                           ---    -----     -----     -----
    Income (loss) from continuing
     operations before income taxes     (6,142)   5,678    16,007    50,750
    Provision for income taxes          12,835    1,512    17,786    16,389
                                        ------    -----    ------    ------

    Net income (loss)                 $(18,977)  $4,166   $(1,779)  $34,361
                                      ========   ======   =======   =======

    Basic earnings (loss) per share     $(0.45)   $0.09    $(0.04)    $0.76

    Diluted earnings (loss) per share   $(0.45)   $0.09    $(0.04)    $0.75

    Basic weighted-average common
     shares outstanding                 41,832   45,274    42,537    45,156

    Diluted weighted-average common
     shares outstanding                 41,832   45,758    42,537    45,704



                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (in thousands)

                                                 December 31,  December 31,
                                                     2008         2007
                                                     ----         ----

    ASSETS

    Current assets:
         Cash and cash equivalents                 $116,448      $94,588
         Marketable securities                       33,266      110,676
         Accounts receivable, net                    56,549       61,545
         Inventories, net                            46,659       50,532
         Deferred income taxes                       13,253       23,696
         Other current assets                         5,324        6,932
                                                      -----        -----
    Total current assets                            271,499      347,969

    Property and equipment, net                      31,322       30,912

    Long-term investments                            30,401        1,483
    Deposits and other                                7,505        5,562
    Goodwill and intangibles, net                    72,918       67,768
    Customer service equipment, net                      23        1,236
    Deferred income tax assets, net                   6,969        4,098
                                                      -----        -----

    Total assets                                   $420,637     $459,028
                                                   ========     ========


    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
         Accounts payable                            $8,005      $12,424
         Other accrued expenses                      23,928       29,590
                                                     ------       ------
    Total current liabilities                        31,933       42,014

    Long-term liabilities                            12,155        9,953
                                                     ------        -----

    Total liabilities                                44,088       51,967

    Stockholders' equity                            376,549      407,061
                                                    -------      -------
    Total liabilities and stockholders' equity     $420,637     $459,028
                                                   ========     ========

FORT COLLINS, Colo., December 11, 2008—Advanced Energy Industries, Inc. (NasdaqGM: AEIS) announced today that, in order to better align its cost structure with current market conditions, the company will reduce its global workforce by approximately 114 people or 7 percent of its total workforce. This reduction will be across all functional areas and geographies; however the company remains committed to its product development strategy and remains focused on investing in key market opportunities. The company is also taking this opportunity to reconfirm its revenue guidance of $66 to $72 million for the fourth quarter of 2008.

Coupled with the workforce reductions that were implemented during the first three quarters, this realignment brings the total reduction to 185 employees during 2008. This is one of many cost-saving measures the company is implementing in the fourth quarter and the first half of 2009. Others include a 10% pay cut for all executives and a 10% reduction in Board of Directors fees, minimizing discretionary spending, consolidating of certain sales and service offices, and driving efficiencies throughout the organization including in its manufacturing processes. The workforce reduction will result in restructuring charges of approximately $1.9 million in the fourth quarter of 2008, approximately $1.3 million for the first quarter of 2009 and approximately $300,000 for the second quarter of 2009, consisting of severance costs and related expenses. The actions taken today are expected to amount to annual cost savings of approximately $10 million. The overall cost reductions taken during 2008 and targeted for 2009 are expected to amount to annual cost savings of approximately $25 million.

Given the current market conditions and changing customer demand, Advanced Energy has also reviewed its end of life product and inventory strategies and its excess and obsolete inventory reserve policies. As a result, the company will record a charge of approximately $3.5 million to cost of goods sold in the fourth quarter of 2008.

“Advanced Energy is taking proactive steps to manage its cost structure, streamline operations and improve efficiencies during these challenging times. These short and long term cost-cutting actions are expected to lower our quarterly break-even point to approximately $65 million by the end of the second quarter of 2009. Despite the reduction in our workforce, we remain committed to investing in key new products that have the greatest potential in our markets. These actions will position us to capitalize on our opportunities when the markets and economy begin to recover,” said Dr. Hans Betz, president and chief executive officer of Advanced Energy. “These are unfortunate circumstances and challenging market conditions, and we would like to thank our employees for their service and dedication to Advanced Energy.”