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Danny Herron
Advanced Energy Industries, Inc.
Annie Leschin/Vanessa Lehr
Advanced Energy Industries, Inc.

Advanced Energy Announces Solid First Quarter Results

Revenue of $137.7 million, a 97.5% increase over Q1 2010
Operating Income of $24.4 million, 17.7% of revenue
EPS of $0.43 share
Record bookings of $184.0 million

FORT COLLINS, Colo., May 02, 2011—Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the first quarter ended March 31, 2011. The company posted first quarter sales of $137.7 million, operating income of 17.7%, and earnings of $0.43 per diluted share from continuing operations.

"Advanced Energy had another quarter of solid financial and organizational performance. Our strategy to transition the company to a diversified business model paid dividends this quarter as increased shipments in our thin films business minimized the seasonality of our renewables business," said Dr. Hans Betz, chief executive officer.

Total revenue of $137.7 million was split between Thin Films at $100.1 million and $37.6 million in the Renewables Business Unit. Thin films sales were primarily driven by strength in the semiconductor market. Renewables sales were impacted by the North American market first quarter seasonality, but delivered record bookings of $65.5 million for the quarter.

"We are very excited about our announcement today that our inverters have been chosen for two major Utility projects: a 150MW project with Zachry in Arizona and a 35MW project in California with Cupertino Electric, demonstrating the differentiated reliability and efficiency of our inverters and the subsequent impact on the levelized cost of energy. We are seeing a growing number of larger, Utility scale projects as the solar market continues its expansion," said Dr. Hans Betz, chief executive officer.

Operating income grew to $24.4 million or 17.7% of revenue, the 8th consecutive quarter of improved operating results. This continued strength was the result of our aggressive management of operating expenses as we continue to refine our strategic business units. Net income from continuing operations was $18.8 million or $0.43 per diluted share, compared to net income from continuing operations of $19.7 million or $0.45 per diluted share in the fourth quarter of 2010. This decline was due to an increase in the company's effective tax rate to 25% in the first quarter of 2011 from 19% in the fourth quarter of 2010.

Bookings for the first quarter were $184.0 million, compared to $83.2 million in the first quarter of 2010.

Thin Films Business Unit

Thin Films business unit sales climbed to $100.1 million versus $67.4 million in the same period of 2010, a 49% improvement year over year. This growth reflects the continued strength in the semiconductor industry and demonstrated our strength in advanced power solutions for Etch and Deposition applications. We also benefited from another strong quarter in the solar panel and glass market as we continue to leverage our leading position in crystalline silicon processing equipment and strategic customer relationships to address the current growth in China.

Renewables Business Unit

Renewables business unit sales were $37.6 million in the quarter versus $2.3 million in the same period of 2010. This significant year over year improvement reflects the acquisition of PV Powered as well continued growth of the North American solar market. Our focus on building a leading position in the strategic commercial and Utility segments of the inverter market continued this quarter with record bookings reflecting the many growth opportunities ahead.

Second Quarter 2011 Guidance

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


  • Sales of $148 million to $160 million
  • Earnings per share of $0.36 to $0.44

First Quarter 2011 Conference Call

Management will host a conference call tomorrow, Tuesday, May 3, 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) 299-6183. International callers may access the call by dialing (617) 801-9173. Participants will need to provide a conference pass code 79453281. For a replay of this teleconference, please call (888) 286-8010 or (617) 801-6888, and enter the pass code 79453281. 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

About Advanced Energy

Advanced Energy (NASDAQ: AEIS - News) is a global leader in innovative power and control technologies for thin-film manufacturing and high-growth solar-power generation. Advanced Energy is headquartered in Fort Collins, Colorado, with dedicated support and service locations around the world. For more information, go to

Forward-Looking Language

The Company's expectations with respect to guidance to financial results for the second quarter ending June 30, 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, the timing of orders received from customers, the company's ability to realize benefits from cost improvement efforts, 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 Copies may also be obtained from Advanced Energy's website at 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.


(in thousands, except per share data)
  Three Months Ended
  March 31,     December 31,
  2011     2010     2010
SALES $ 137,652       $ 69,687       $


COST OF SALES   75,607         40,480         83,910  
GROSS PROFIT   62,045         29,207         64,743  
    45.1 %       41.9 %       43.6 %
Research and development   15,862         11,142         15,275  
Selling, general and administrative   20,905         12,229         24,586  
Amortization of intangible assets   921         -         920  
Total operating expenses   37,688         23,371         40,781  
INCOME FROM OPERATIONS   24,357         5,836         23,962  
Other income, net   663         385         392  
Income from continuing operations before income taxes   25,020         6,221         24,354  
Provision for income taxes   6,254         1,371         4,624  
INCOME FROM CONTINUING OPERATIONS   18,766         4,850         19,730  
Gain on sale of discontinued operations, net of tax   -         -         12,531  
Results from discontinued operations, net of tax   140         1,367         (853 )
NET INCOME $ 18,906       $ 6,217       $ 31,408  
Basic weighted-average common shares outstanding   43,440         42,074         43,315  
Diluted weighted-average common shares outstanding   44,133         42,680         43,796  
EARNINGS PER SHARE:              
BASIC EARNINGS PER SHARE $ 0.43       $ 0.12       $ 0.46  
DILUTED EARNINGS PER SHARE $ 0.43       $ 0.11       $ 0.45  
BASIC EARNINGS PER SHARE $ 0.00       $ 0.03       $ 0.27  
DILUTED EARNINGS PER SHARE $ 0.00       $ 0.03       $ 0.27  
NET INCOME:              
BASIC EARNINGS PER SHARE $ 0.44       $ 0.15       $ 0.73  
DILUTED EARNINGS PER SHARE $ 0.43       $ 0.15       $ 0.72  
(in thousands)
  March 31,       December 31,
  2011       2010
Current assets:          
Cash and cash equivalents $ 132,418       $ 130,914
Marketable securities   7,620         9,640
Accounts receivable, net   121,236         119,893
Inventories, net   90,109         77,593
Deferred income taxes   7,689         7,510
Income taxes receivable   9,435         6,061
Other current assets   9,179         10,156
Total current assets   377,686         361,767
Property and equipment, net   36,210         34,569
Deposits and other   8,874         8,874
Goodwill and intangibles, net   95,860         96,781
Deferred income tax assets, net   3,166         3,166
Total assets $ 521,796       $ 505,157
Current liabilities:          
Accounts payable $ 51,974       $ 56,185
Other accrued expenses   43,005         46,140
Total current liabilities   94,979         102,325
Long-term liabilities  


Total liabilities  


Stockholders' equity   396,858         373,968
Total liabilities and stockholders' equity $


      $ 505,157
(in thousands)
    Three Months Ended
    March 31,     December 31,
    2011     2010     2010
Thin Films   $ 100,099       $ 67,423     $ 96,960
Renewables     37,553         2,264       51,693
Total Sales     137,652         69,687       148,653
OPERATING INCOME:                
Thin Films   $ 24,824              
Renewables     2,512              
Total segment operating income     27,336              
Corporate expenses     (2,979 )            
Other income, net     663              
Income from continuing operations before income taxes   $ 25,020