Advanced Energy Announces Third Quarter Results
Advanced Energy Announces Third Quarter Results
  • Korea IT Times (info@koreaittimes.com)
  • 승인 2011.11.03 12:26
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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.

 

Source: Korea News Wire.com


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