Advanced Energy Industries (AEIS) 8-K Advanced Energy Announces 2007 Third Quarter Financial Results

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Exhibit 99.1

Financial News Release

Contacts:
Lawrence D. Firestone Advanced Energy Industries, Inc. 970.407.6570 lawrence.firestone@aei.com	Annie Leschin/Brooke Deterline Advanced Energy Industries, Inc. 970.407.6555 ir@aei.com

FOR IMMEDIATE RELEASE

ADVANCED ENERGY ANNOUNCES 2007 THIRD QUARTER FINANCIAL RESULTS

Fort Collins, Colo., October 24, 2007— Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the third quarter ended September 30, 2007. Sales were $90.5 million for the third quarter of 2007, consistent with the Company’s revised guidance given on August 30, 2007. This represented a decrease of 16.0% from $107.7 million in the third quarter of 2006, and a sequential decline of 12.1% compared to $103.0 million in the second quarter of 2007.

Gross margin for the third quarter was 40.6%, down from 43.7% in the third quarter of 2006, and down from 43.6% in the second quarter of 2007. This was primarily due to lower revenues, an additional charge of $2.2 million to cost of goods sold, and costs related to the transition of manufacturing from Stolberg, Germany to China. The additional charges were related to a change in the estimate of warranty expense for two products, which resulted in a 2.4% reduction in gross margin. The company also incurred a net charge of $1.4 million related to a foreign exchange loss during the quarter, as the Yen and Euro strengthened relative to the US dollar. Net income for the third quarter of 2007 was $5.9 million, or $0.13 per diluted share, compared to $17.0 million, or $0.38 per diluted share in the third quarter of 2006, and $11.7 million or $0.25 in the second quarter of 2007.

“Our revenue was in line with our pre announcement due to the weakness in the semiconductor equipment market. The gross margin did not meet our objective due to the increased warranty expense. In the near term we expect to see continued softness in the semiconductor equipment and flat panel display markets with modest growth in our other markets,” said Dr. Hans Betz, president and chief executive officer of Advanced Energy. “We made additional progress in the strategic diversification of our business notably with the successful introduction of our Solaron™ inverter product line.”

Advanced Energy Reports Second Quarter 2007 Results — Page 2
October 24, 2007

Fourth Quarter 2007 Guidance

The Company anticipates fourth quarter 2007 results to be within the following ranges:

• Sales of $86 million to $90 million.

• Earnings per share of $0.12 to $0.14

Third Quarter 2007 Conference Call

Management will host a conference call today, Wednesday, October 24, 2007 at 5:00 pm eastern daylight time to discuss Advanced Energy’s financial results. You may access this conference call by dialing (888)-713-4717. International callers may access the call by dialing (706)-634-7937. Participants will need to provide a conference passcode 20284265. For a replay of this teleconference, please call (800)-642-1687 or (706) 645-9291, and enter the passcode 20284265. The replay will be available through October 27, 2007. A webcast will also be available on the Investor Relations webpage at http://ir.advanced-energy.com.

About Advanced Energy

Advanced Energy^® develops innovative power and control technologies that enable high-growth, plasma thin-film manufacturing processes worldwide, including semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications. Advanced Energy^® also develops grid connect inverters for the solar energy market.

The Company’s expectations with respect to financial results for the fourth quarter of 2007 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 volatility and cyclicality of the industries the company serves, the timing of orders received from customers, the company’s ability to realize cost improvement benefits from the global operations initiatives underway, the company's dependence on sole and limited source suppliers, fluctuating currency rates, and unanticipated changes to management’s

Advanced Energy Reports Second Quarter 2007 Results — Page 3
October 24, 2007

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.advanced-energy.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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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)

	Three Months Ended									Nine Months Ended
	September 30,						June 30,			September 30,
	2007			2006			2007			2007			2006
Sales	$	90,492		$	107,688		$	103,049		$	300,863		$	306,209
Cost of sales		53,765			60,674			58,094			170,873			175,885
Gross profit		36,727			47,014			44,955			129,990			130,324
Operating expenses:
Research and development		12,937			11,345			12,911			37,883			32,608
Selling, general and administrative		15,537			16,856			15,414			46,169			45,502
Amortization of intangible assets		201			453			202			727			1,383
Restructuring charges		556			31			158			3,505			91
Total operating expenses		29,231			28,685			28,685			88,284			79,584
Income from operations		7,496			18,329			16,270			41,706			50,740
Other income, net		308			1,044			1,505			3,367			3,617
Income from continuing operations before income taxes		7,804			19,373			17,775			45,073			54,357
Provision for income taxes		(1,948	)		(2,381	)		(6,108	)		(14,879	)		(6,580	)
Income from continuing operations		5,856			16,992			11,667			30,194			47,777
Gain on sale of discontinued assets		—			—			—			—			138
Income from discontinued operations		—			—			—			—			138
Net income	$	5,856		$	16,992		$	11,667		$	30,194		$	47,915
Net income per basic share
Income from continuing operations	$	0.13		$	0.38		$	0.26		$	0.67		$	1.07
Income from discontinued operations	$	—		$	—		$	—		$	—		$	0.00
Basic earnings per share	$	0.13		$	0.38		$	0.26		$	0.67		$	1.07
Net income per diluted share
Income from continuing operations	$	0.13		$	0.38		$	0.25		$	0.66		$	1.06
Income from discontinued operations	$	—		$	—		$	—		$	—		$	0.00
Diluted earnings per share	$	0.13		$	0.38		$	0.25		$	0.66		$	1.06
Basic weighted-average common shares outstanding		45,248			44,762			45,161			45,117			44,679
Diluted weighted-average common shares outstanding		45,761			45,166			45,992			45,696			45,168

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)

	September 30,		December 31,
	2007		2006
ASSETS
Current assets:
Cash and cash equivalents	$	76,878	$	58,240
Marketable securities		108,154		85,978
Accounts receivable, net		69,704		74,794
Inventories, net		57,388		52,778
Deferred income taxes		21,740		24,434
Assets held for sale		1,345		—
Other current assets		5,877		4,503
Total current assets		341,086		300,727
Property and equipment, net		30,677		33,571
Deposits and other		8,296		2,640
Goodwill and intangibles, net		67,013		65,584
Customer service equipment, net		939		832
Deferred income tax assets, net		4,222		8,549
Total assets	$	452,233	$	411,903
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	15,578	$	16,310
Other accrued expenses		28,488		36,619
Total current liabilities		44,066		52,929
Long-term liabilities		9,851		3,184
Total liabilities		53,917		56,113
Stockholders’ equity		398,316		355,790
Total liabilities and stockholders’ equity	$	452,233	$	411,903