Advanced Energy Announces Strong Growth and Profitability in Fourth Quarter Results
FORT COLLINS, Colo., Feb. 16 /PRNewswire-FirstCall/ -- Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced financial results for the fourth quarter ended December 31, 2009.
Sales for the fourth quarter of 2009 increased 28.4% to $66.4 million from $51.8 million in the third quarter of 2009, and decreased 1.6% from $67.5 million in the fourth quarter of 2008.
Sales to the semiconductor capital equipment markets rose 58.2% sequentially to $32.9 million, representing 49.6% of total sales for the quarter. Sales to the non-semiconductor markets grew 8.6% sequentially to $22.0 million, representing 33.2% of total sales for the quarter. Service revenue also continued strong, increasing 7.6% sequentially to $11.5 million or 17.3% of total sales for the quarter. Bookings for the fourth quarter were $98.0 million, which drove our book to bill ratio to 1.48:1, up from 1.16:1 in the third quarter of 2009. Ending backlog increased 91.2% sequentially to $66.2 million at the end of the fourth quarter compared to $34.6 million at the end of the third quarter of 2009.
Gross margin improved significantly to 36.8% in the fourth quarter, up from 30.1% in the third quarter of 2009 and 27.2% for the fourth quarter of 2008. The sequential improvement was driven largely by leverage against our fixed costs from the increase in revenues.
Fourth quarter net income was $1.5 million or $0.04 per diluted share, compared to a net loss of $8.4 million or a loss per share of $0.20 in the third quarter of 2009. In the fourth quarter of 2008, the net loss was $19.0 million or a loss per share of $0.45, the vast majority of which was a non-cash charge of $18.0 million for income taxes related to a valuation allowance against our deferred tax assets. We are pleased to report that we ended 2009 with cash, cash equivalents and investments of $177.5 million, a decline of just $2.6 million due to our careful cash management during the year.
For the full year 2009, sales were $186.4 million, 43.3% below sales of $328.9 million in 2008. The challenging economic environment impacted sales across all markets, most notably in the semiconductor capital equipment market where sales fell 43.1% from 2008. Net loss from operations for 2009 was $102.7 million, or a loss per share of $2.45. More than half of this was due to a non-cash goodwill impairment charge in the first quarter of 2009 of $63.3 million or $1.51 per share. Net loss for 2008 was $1.8 million or $0.04 per diluted share.
"The fourth quarter marked a high point in 2009, as we grew revenues and achieved profitability by leveraging the cost reductions taken during the year," said Hans Betz, chief executive officer. "The pace of the recovery in the semiconductor capital equipment market ramped significantly in the quarter, as did the penetration of our Solaron inverters into larger, multi-megawatt projects. When the global economy recovers, we expect to benefit from the investments we made in technology during the downturn and our growth in multiple markets."
First Quarter 2010 Guidance
The Company anticipates first quarter 2010 results to be within the following ranges:
- Sales of $77 million to $83 million
- Earnings per share of $0.13 to $0.17
Fourth Quarter 2009 Conference Call
Management will host a conference call today, Tuesday, February 16, 2010, at 8:30 am Eastern Standard Time to discuss Advanced Energy's financial results. Domestic callers may access this conference call by dialing (888) 713-4717. International callers may access the call by dialing (816) 650-2836. Participants will need to provide a conference passcode 54700348. For a replay of this teleconference, please call (800) 642-1687 or (706) 645-9291, and enter the passcode 54700348. The replay will be available through 12:00 a.m. Eastern Standard Time, February 18, 2010. A webcast will also be available on the Investor Relations webpage 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-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.
The Company's expectations with respect to guidance to financial results for the first quarter ending March 31, 2010 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 timing of orders received from customers, the company's ability to realize cost improvement benefits, 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
----------------------------- -------------------
December 31, September 30, December 31,
2009 2008 2009 2009 2008
---- ---- ---- ---- ----
Sales $66,439 $67,525 $51,762 $186,395 $328,918
Cost of sales 41,972 49,128 36,181 132,028 204,136
------ ------ ------- ------- -------
Gross profit 24,467 18,397 15,581 54,367 124,782
36.8% 27.2% 30.1% 29.2% 37.9%
Operating expenses:
Research and
development 11,227 13,424 10,195 43,262 54,952
Selling, general
and administrative 11,135 9,513 10,788 41,484 52,273
Impairment of
goodwill - - - 63,260 -
Amortization of
intangible assets 148 257 123 613 946
Restructuring
charges 6 1,898 235 4,376 3,487
------ ------ ------- ------- -------
Total operating
expenses 22,516 25,092 21,341 152,995 111,658
Income (loss) from
operations 1,951 (6,695) (5,760) (98,628) 13,124
Other income, net 495 553 506 1,910 2,883
------ ------ ------- ------- -------
Income (loss) from
operations before
income taxes 2,446 (6,142) (5,254) (96,718) 16,007
Provision for
income taxes 923 12,835 3,177 5,987 17,786
------ ------ ------- ------- -------
Net income (loss) $1,523 $(18,977) $(8,431) $(102,705) $(1,779)
====== ====== ======= ======= =======
Basic earnings
(loss) per share $0.04 $(0.45) $(0.20) $(2.45) $(0.04)
Diluted earnings
(loss) per share $0.04 $(0.45) $(0.20) $(2.45) $(0.04)
Basic weighted-
average common
shares outstanding 42,032 41,832 42,004 41,966 42,537
Diluted weighted-
average common
shares outstanding 42,464 41,832 42,004 41,966 42,537
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
----------------------
2009 2008
---- ----
ASSETS
Current assets:
Cash and cash equivalents $133,106 $116,448
Marketable securities 44,401 33,266
Accounts receivable, net 50,267 56,549
Inventory 37,118 46,659
Deferred income taxes, net 9,215 13,253
Other current assets 5,640 5,324
-------- --------
Total current assets 279,747 271,499
Property and equipment, net 30,615 31,322
Long-term investments - 30,401
Deposits and other 9,294 7,528
Goodwill and intangibles, net 5,982 72,918
Deferred income taxes, net 19,487 6,969
-------- --------
Total assets $345,125 $420,637
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $23,802 $8,005
Other accrued expenses 24,176 23,928
-------- --------
Total current liabilities 47,978 31,933
Long-term liabilities 18,813 12,155
-------- --------
Total liabilities 66,791 44,088
Stockholders' equity 278,334 376,549
-------- --------
Total liabilities and
stockholders' equity $345,125 $420,637
======== ========
SOURCE Advanced Energy Industries, Inc.
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