Advanced Energy Industries (AEIS) 8-K Advanced Energy Announces Second Quarter Results

Exhibit 99.1

Financial News Release

CONTACTS:
Danny Herron	Annie Leschin/Vanessa Lehr
Advanced Energy Industries, Inc.	Advanced Energy Industries, Inc.
970.407.6570	970.407.6555
danny.herron@aei.com	ir@aei.com

ADVANCED ENERGY ANNOUNCES SECOND QUARTER RESULTS

• Revenue of $138.2 million, a 38.1% increase over Q2, 2010

• Operating Income of $17.3 million, 12.5% of revenue

• EPS of $0.31 share

Fort Collins, Colo., July 25, 2011— Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the second quarter ended June 30, 2011. The company posted second quarter sales of $138.2 million, operating income of 12.5%, and earnings of $0.31 per diluted share from continuing operations.

“Our renewables business in the second quarter was pressured by several industry dynamics, including declining panel prices, increasing competition, and changing incentive programs, which impacted our results more than anticipated. We were nonetheless pleased that our thin films business unit was in-line with expectations,” said Dr. Hans Betz, chief executive officer. “Looking at our expectations for the remainder of 2011, we believe the benefits of our diversification strategy become clear. As our thin film business softens with market cyclicality, our renewables business is poised to capture previously-deferred business as customers initiate projects in order to take advantage of tax credits by year-end. Longer-term, we continue to see demand for our utility-scale inverter products in North America and remain confident that Advanced Energy’s strategy of selling based on levelized cost of energy (LCOE), superior uptime performance and best-in-class service offering will continue to differentiate us in the market”

Thin Film Business Unit

Thin Films business unit sales were $97.3 million versus $85.7 million in the same period of 2010, a 13.5% improvement year over year. Total Thin Film sales met our expectations this quarter, although declined slightly on a sequential basis from $100.1 million in the first quarter of 2011. Strength in our flat panel display market this quarter was somewhat offset by the initial signs of a pause in semiconductor capital spending, as well as the overcapacity and resulting price declines in the solar panel industry.

Renewables Business Unit

Renewables business unit sales were $40.8 million in the quarter versus $14.4 million in the same period of 2010. The significant year-over-year improvement reflects the acquisition of PV Powered and the ongoing growth of the North American solar equipment market. Renewable sales were impacted by several industry dynamics during the quarter, leading to slower than anticipated sequential growth of 9%.

Operating income was $17.3 million or 12.5% of revenue. Net income from continuing operations was $13.5 million or $0.31 per diluted share, compared to net income from continuing operations of $18.8 million or $0.43 per diluted share in the first quarter of 2011.

Bookings for the second quarter were $101.7 million.

Third Quarter 2011 Guidance

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

• Sales of $130.0 million to $145.0 million

• Earnings per share of $0.20 to $0.30

Second Quarter 2011 Conference Call

Management will host a conference call tomorrow, Tuesday, July 26, 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 (866) 362-4820. International callers may access the call by dialing (617) 597-5345. Participants will need to provide a conference pass code 76215669. For a replay of this teleconference, please call (888) 286-8010 or (617) 801-6888, and enter the pass code 29763068. 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.

About Advanced Energy

Advanced Energy (NASDAQ: AEIS — News) is a global leader in innovative power and control technologies forthin-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 www.advanced-energy.com.

Forward-Looking Language

The Company’s expectations with respect to guidance to financial results for the third quarter ending September 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, renewable energy project delays resulting from solar panel price declines and increased competition in the solar inverter equipment 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 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.

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ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
	2011			2010			2011			2011			2010
SALES
COST OF SALES	$	138,154		$	100,107		$	137,652		$	275,806		$	169,794
GROSS PROFIT		82,777			55,548			75,607			158,384			96,028
		55,377			44,559			62,045			117,422			73,766
		40.1	%		44.5	%		45.1	%		42.6	%		43.4	%
OPERATING EXPENSES:
Research and development		17,137			13,515			15,862			32,999			24,657
Selling, general and administrative		20,001			17,183			20,905			40,906			29,412
Amortization of intangible assets		921			767			921			1,842			767
Total operating expenses		38,059			31,465			37,688			75,747			54,836
INCOME FROM OPERATIONS		17,318			13,094			24,357			41,675			18,930
Other income, net		92			220			663			755			605
Income from continuing operations before income taxes		17,410			13,314			25,020			42,430			19,535
Provision for income taxes		3,898			1,857			6,254			10,152			3,228
INCOME FROM CONTINUING OPERATIONS		13,512			11,457			18,766			32,278			16,307
Results from discontinued operations, net of tax		74			2,162			140			214			3,529
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES		74			2,162			140			214			3,529
NET INCOME	$	13,586		$	13,619		$	18,906		$	32,492		$	19,836
Basic weighted-average common shares outstanding		43,571			42,806			43,440			43,505			42,440
Diluted weighted-average common shares outstanding		44,187			43,327			44,133			44,156			43,004
EARNINGS PER SHARE:
CONTINUING OPERATIONS:
BASIC EARNINGS PER SHARE	$	0.31		$	0.27		$	0.43		$	0.74		$	0.38
DILUTED EARNINGS PER SHARE	$	0.31		$	0.26		$	0.43		$	0.73		$	0.38
DISCONTINUED OPERATIONS
BASIC EARNINGS PER SHARE	$	0.00		$	0.05		$	0.00		$	0.00		$	0.08
DILUTED EARNINGS PER SHARE	$	0.00		$	0.05		$	0.00		$	0.00		$	0.08
NET INCOME:
BASIC EARNINGS PER SHARE	$	0.31		$	0.32		$	0.44		$	0.75		$	0.47
DILUTED EARNINGS PER SHARE	$	0.31		$	0.31		$	0.43		$	0.74		$	0.46

ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	June 30,		December 31,
	2011		2010
ASSETS
Current assets:
Cash and cash equivalents	$	135,564	$	130,914
Marketable securities		10,124		9,640
Accounts receivable, net		128,802		119,893
Inventories, net		100,392		77,593
Deferred income taxes		7,689		7,510
Income taxes receivable		2,388		6,061
Other current assets		11,689		10,156
Total current assets		396,648		361,767
Property and equipment, net		38,408		34,569
Deposits and other		8,795		8,874
Goodwill and intangibles, net		93,094		96,781
Deferred income tax assets, net		5,059		3,166
Total assets	$	542,004	$	505,157
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	48,828	$	56,185
Other accrued expenses		47,130		46,140
Total current liabilities		95,958		102,325
Long-term liabilities		30,393		28,864
Total liabilities		126,351		131,189
Stockholders’ equity		415,653		373,968
Total liabilities and stockholders’ equity	$	542,004	$	505,157

ADVANCED ENERGY INDUSTRIES,
INC. SEGMENT INFORMATION
(in thousands)

	Three Months Ended								Six Months Ended
	June 30,					March 31,			June 30,
	2011			2010		2011			2011			2010
SALES:
Thin Films	$	97,331		$	85,697	$	100,099		$	197,430		$	153,120
Renewables		40,823			14,410		37,553			78,376			16,674
Total Sales		138,154			100,107		137,652			275,806			169,794
OPERATING INCOME:
Thin Films	$	20,042				$	24,824		$	44,866
Renewables		321					2,512			2,833
Total segment operating income		20,363					27,336			47,699
Corporate expenses		(3,045	)				(2,979	)		(6,024	)
Other income, net		92					663			755
Income from continuing operations before income taxes	$	17,410				$	25,020		$	42,430