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Advanced Energy Industries, Inc.
Advanced Energy Industries, Inc.
Advanced Energy Accelerates Vesting of Certain Stock Options
FORT COLLINS, Colo., Oct 19, 2005—Advanced Energy Industries, Inc. (Nasdaq: AEIS) announced that on October 18, 2005, its Board of Directors approved the accelerated vesting of certain unvested options awarded under its stock option plans. The acceleration applies only to those options with an exercise price of $15.00 or higher. The closing sales price of Advanced Energy common stock on the Nasdaq National Market on October 18, 2005 was $10.69.
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In connection with this acceleration, options to purchase approximately 624,000 shares of common stock that would otherwise have vested over the next 30 months became fully vested. As of October 18, 2005, options to purchase 3.8 million shares of our common stock were outstanding. Unvested options totaling 852,000 that had an exercise price less than $15.00 that were outstanding as of October 18, 2005 will continue to vest on their normal schedule.
The Board of Directors determined to accelerate the vesting of these options principally to reduce future compensation expense that would otherwise be required to be recorded in the statement of operations in periods following our adoption of Statement of Financial Accounting Standards No. 123, Share Based Payment (revised 2004) ("SFAS 123R"). The Company will be required to apply the expense recognition provisions of SFAS 123R beginning in the first quarter of 2006. As a result of the acceleration before considering expected forfeitures, as required by SFAS 123R, the Company expects to eliminate a total of approximately $5 million to $6 million of compensation expense on a pre-tax basis over fiscal years 2006, 2007 and 2008.
About Advanced Energy
Advanced Energy is a global leader in the development and support of technologies critical to high-technology manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications.
Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers (OEMs) and end-users around the world.
Advanced Energy 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, Advanced Energy is a publicly held company traded on the Nasdaq National Market under the symbol AEIS. For more information, please visit our corporate website: www.advanced-energy.com.
Safe Harbor Statement
The Company's statements and assumptions regarding the anticipated requirements of SFAS 123R in respect of the recognition of compensation expense are "forward looking statements" within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements inherently 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. For example, the amount of compensation expense we eliminate in 2006-2008 or the timing of the application of SFAS 123R to us might be materially different from our projections, as a result of amendments to SFAS 123R or interpretations of such accounting standard. Other factors might also affect the ultimate accuracy of our forward looking statements. The company assumes no obligation to update the information in this press release.