EXHIBIT 99.3
AERA JAPAN LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<Table>
<Caption>
DECEMBER 31, DECEMBER 31,
2001 2000
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents ................................ $ 9,368 $ 14,754
Marketable securities .................................... 1,219 1,411
Accounts receivable, net ................................. 9,409 28,637
Notes receivable - trade ................................. 3,055 9,643
Inventories, net ......................................... 17,921 34,741
Other current assets ..................................... 334 3,857
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Total current assets ................................. 41,306 93,043
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PROPERTY AND EQUIPMENT, net ................................ 13,658 16,742
OTHER ASSETS ............................................... 951 4,583
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Total assets ......................................... $ 55,915 $ 114,368
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ......................................... $ 1,547 $ 8,275
Trade notes payable ...................................... 3,665 16,271
Other accrued expenses ................................... 6,400 10,756
Notes payable ............................................ 11,007 16,281
Current portion of long-term debt ........................ 8,377 8,638
Other current liabilities ................................ 180 254
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Total current liabilities ............................ 31,176 60,475
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LONG-TERM LIABILITIES:
Senior borrowings ........................................ 13,895 16,756
Other long-term liabilities .............................. 2,995 8,817
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16,890 25,573
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Total liabilities .................................... 48,066 86,048
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STOCKHOLDERS' EQUITY ....................................... 7,849 28,320
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Total liabilities and stockholders' equity ........... $ 55,915 $ 114,368
============ ============
</Table>
The accompanying notes to unaudited condensed consolidated financial statements
are an integral part of these unaudited condensed consolidated balance sheets.
AERA JAPAN LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS)
<Table>
<Caption>
SIX-MONTH SIX-MONTH
PERIOD ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
2001 2000
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SALES ...................................................... $ 20,601 $ 69,248
COST OF SALES .............................................. 22,304 39,817
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Gross (loss) profit ..................................... (1,703) 29,431
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ............... 10,517 13,850
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(LOSS) INCOME FROM OPERATIONS .............................. (12,220) 15,581
OTHER INCOME, NET .......................................... 1,251 607
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(LOSS) INCOME BEFORE INCOME TAXES .......................... (10,969) 16,188
PROVISION FOR INCOME TAXES ................................. 4,492 6,419
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(LOSS) INCOME BEFORE CUMULATIVE EFFECT
OF A CHANGE IN ACCOUNTING PRINCIPLE .................. (15,461) 9,769
Cumulative effect of a change in accounting principle ... -- (370)
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NET (LOSS) INCOME .......................................... $ (15,461) $ 9,399
============ ============
</Table>
The accompanying notes to unaudited condensed consolidated financial statements
are an integral part of these unaudited condensed consolidated
statements of operations.
AERA JAPAN LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<Table>
<Caption>
SIX-MONTH SIX-MONTH
PERIOD ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
2001 2000
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash from operating activities ............................ $ (4,813) $ 600
INVESTING ACTIVITIES:
(Increase) decrease in time deposits, net ..................... (138) 458
Purchase of property and equipment, net ....................... (163) (988)
Proceeds from the cancellation of life insurance contracts .... 500 --
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Net cash from investing activities ........................ 199 (530)
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FINANCING ACTIVITIES:
Net decrease in short-term borrowings ......................... (2,658) 876
Principal payments under capital lease obligations ............ (464) (259)
Proceeds from issuance of long-term debt, net ................. 3,052 1,773
Payment of dividends .......................................... (130) (155)
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Net cash from financing activities ........................ (200) 2,235
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EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS ......................................... (574) 862
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NET CHANGE IN CASH AND CASH EQUIVALENTS ......................... (5,388) 3,167
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD ....................................................... 14,756 11,587
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CASH AND CASH EQUIVALENTS, END OF PERIOD ........................ $ 9,368 $ 14,754
============ ============
</Table>
The accompanying notes to unaudited condensed consolidated financial
statements are an integral part of these unaudited condensed
consolidated statements of cash flows.
AERA JAPAN LIMITED AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION AND MANAGEMENT OPINION
The accompanying unaudited condensed consolidated balance sheets and
statements of operations and cash flows contain all adjustments necessary to
present fairly the financial position of Aera Japan Limited and Subsidiaries at
December 31, 2001 and 2000, and the results of its operations and cash flows for
the six-month periods ended December 31, 2001 and 2000.
The condensed unaudited financial statements presented herein have been
prepared in accordance with the instructions related to the preparation of
condensed interim financial statements and do not include all the information
and note disclosures required by generally accepted accounting principles. The
financial statements should be read in conjunction with the audited financial
statements and notes thereto contained in Exhibit 99.2.
The preparation of condensed consolidated financial statements requires
management to make certain estimates and assumptions that affect the amounts
reported and disclosed in the accompanying condensed consolidated financials
statements. Actual results could differ from those estimates.
NOTE 2. SUBSEQUENT EVENTS
On January 18, 2002, the shareholders of Aera sold all of their Company
ownership to the Japanese subsidiary of Advanced Energy Industries, Inc. (a
Delaware corporation). The severance indemnity of $3.73 million was paid in lump
sum on January 18, 2002 to Mr. Hisanori Aoyama, the former shareholder and
representative director of the Company, who terminated his appointment on
January 18, 2002. The portion of its benefits accrued through December 31, 2001
of $3.72 million was accrued for and reflected as an other accrued expense in
the accompanying consolidated balance sheet at December 31, 2001, and the
remaining portion of approximately $12,000 was charged to operations for the
subsequent period.