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

Exhibit 99.1

Financial News Release

Contacts:
Annie Leschin / Brooke Deterline
StreetSmart Investor Relations
415.775.1788 / ir@aei.com

FOR IMMEDIATE RELEASE

ADVANCED ENERGY ANNOUNCES 2007 SECOND QUARTER FINANCIAL RESULTS

Fort Collins, Colo., July 25, 2007— Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the second quarter ended June 30, 2007. Sales were $103.0 million for the second quarter of 2007, a decrease of 1.5% from $104.6 million in the second quarter of 2006, and a sequential decline of 4.0% compared to $107.3 million in the first quarter of 2007.

Gross margin for the second quarter was 43.6%, up from 42.8% in the second quarter of 2006, and down from 45.0% in the first quarter of 2007 due to lower revenues, and the transition of manufacturing from Stolberg, Germany to China.

Net income for the second quarter of 2007 was $11.7 million, or $0.25 per diluted share, a 35.7% decrease compared to $18.2 million, or $0.40 per diluted share in the second quarter of 2006. This was primarily due to an increase in research and development spending and the change in the effective tax rate from 11% in 2006 to 35% in 2007. Net income also decreased 8.0% from $12.7 million, or $0.28 in the first quarter of 2007, due to lower revenues. The first quarter of 2007 included a restructuring charge of $2.8 million related to the closure of the Company’s Stolberg, Germany facility.

“Second quarter revenues came in at the low end of our guidance as we began to experience the impacts of a decline in our business as demand from the semiconductor capital equipment industry was lower than previously anticipated. As a result, earnings came in lower than expected and gross margins were lower due to the costs associated with the transition of production from Stolberg, Germany to China, which will be complete by the end of the year. We increased our R&D spending in the quarter which was driven by several strategic initiatives that are in process. However, we experienced strong growth from our non-semi business, which was

Advanced Energy Reports Second Quarter 2007 Results — Page 2
July 25, 2007

up 11% sequentially, and dampened the effect of the down semi revenues for the quarter.” said Dr. Hans Betz, president and chief executive officer of Advanced Energy. “As we look ahead, we remain highly confident in our growth strategy, including our current product pipeline, our excellent position in our markets and our future growth opportunities.”

Third Quarter 2007 Guidance

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

• Sales of $95 million to $100 million.

• Earnings per share of $0.19 to $0.22.

Second Quarter 2007 Conference Call

Management will host a conference call today, Wednesday, July 25, 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)-679-7720. For a replay of this teleconference, please call (800)-642-1687 or (706) 645-9291, and enter the passcode 7322751. The replay will be available through July 27, 2007. There will also be a webcast available on the Investor Relations webpage athttp://ir.advanced-energy.com.

About Advanced Energy

Advanced Energy is a global leader in the development and support of technologies critical to thin film deposition manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications. Advanced Energy is a publicly held company traded on the Nasdaq Global Market under the symbol AEIS. For more information, please visit our corporate website: www.advanced-energy.com.

The Company’s expectations with respect to financial results for the third 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

Advanced Energy Reports Second Quarter 2007 Results — Page 3
July 25, 2007

orders received from customers, the company’s ability to realize cost improvement benefits from the global operations initiatives underway, 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 atwww.sec.gov. Copies may also be obtained from Advanced Energy’s website atwww.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									Six Months Ended
	June 30,						March 31,			June 30,
	2007			2006			2007			2007			2006
Sales	$	103,049		$	104,571		$	107,323		$	210,372		$	198,521
Cost of sales		58,094			59,811			59,014			117,108			115,211
Gross profit		44,955			44,760			48,309			93,264			83,310
Operating expenses:
Research and development		12,911			10,804			12,035			24,946			21,263
Selling, general and administrative		15,414			14,241			15,218			30,632			28,646
Amortization of intangible assets		202			453			324			526			930
Restructuring charges		158			31			2,792			2,950			60
Total operating expenses		28,685			25,529			30,369			59,054			50,899
Income from operations		16,270			19,231			17,940			34,210			32,411
Other income, net		1,505			741			1,554			3,059			2,574
Income from continuing operations before income taxes		17,775			19,972			19,494			37,269			34,985
Provision for income taxes		(6,108	)		(1,947	)		(6,823	)		(12,931	)		(4,199	)
Income from continuing operations		11,667			18,025			12,671			24,338			30,786
Gain on sale of discontinued assets		—			138			—			—			138
Income from discontinued operations		—			138			—			—			138
Net income	$	11,667		$	18,163		$	12,671		$	24,338		$	30,924
Net income per basic share
Income from continuing operations	$	0.26		$	0.40		$	0.28		$	0.54		$	0.69
Income from discontinued operations	$	—		$	—		$	—		$	—		$	—
Basic earnings per share	$	0.26		$	0.41		$	0.28		$	0.54		$	0.69
Net income per diluted share
Income from continuing operations	$	0.25		$	0.40		$	0.28		$	0.53		$	0.68
Income from discontinued operations	$	—		$	—		$	—		$	—		$	—
Diluted earnings per share	$	0.25		$	0.40		$	0.28		$	0.53		$	0.69
Basic weighted-average common shares outstanding		45,161			44,704			44,941			45,051			44,638
Diluted weighted-average common shares outstanding		45,992			45,108			45,636			45,834			45,098

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)

	June 30,		December 31,
	2007		2006
ASSETS
Current assets:
Cash and cash equivalents	$	73,080	$	58,240
Marketable securities		105,407		85,978
Accounts receivable, net		73,491		74,794
Inventories, net		56,896		52,778
Deferred income taxes		22,692		24,434
Other current assets		4,463		4,503
Total current assets		336,029		300,727
Property and equipment, net		30,659		33,571
Deposits and other		8,105		2,640
Goodwill and intangibles, net		64,404		65,584
Customer service equipment, net		617		832
Deferred income tax assets, net		3,897		8,549
Total assets	$	443,711	$	411,903
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	16,656	$	16,310
Other accrued expenses		34,324		36,619
Total current liabilities		50,980		52,929
Long-term liabilities		9,643		3,184
Total liabilities		60,623		56,113
Stockholders’ equity		383,088		355,790
Total liabilities and stockholders’ equity	$	443,711	$	411,903