EXHIBIT 99.1
CONTACTS:
MIKE EL-HILLOW CATHY KAWAKAMI
SENIOR VICE PRESIDENT, CHIEF FINANCIAL OFFICER DIRECTOR OF INVESTOR RELATIONS
ADVANCED ENERGY INDUSTRIES, INC. ADVANCED ENERGY INDUSTRIES, INC.
970-407-6570 970-407-6732
mike.el-hillow@aei.com cathy.kawakami@aei.com
FOR IMMEDIATE RELEASE
ADVANCED ENERGY REPORTS FIRST QUARTER 2002 RESULTS
FORT COLLINS, COLORADO (APRIL 17, 2002)-Advanced Energy (Nasdaq: AEIS) today
reported financial results for the first quarter ended March 31, 2002. Advanced
Energy is a leading global provider of critical components and sub-systems used
in the production of semiconductors, flat panel displays, data storage products
and other advanced applications.
For the 2002 first quarter, revenues were $42.9 million, including $6.7 million
from Aera Japan Ltd., which Advanced Energy acquired in mid January 2002. This
represents a decrease of 43 percent from $74.7 million for the first quarter of
2001, and an increase of 26 percent from $34.0 million for the fourth quarter of
2001.
Net loss for the first quarter of 2002 was $8.7 million, or $0.27 per share
compared to first quarter 2001 net income of $5.1 million, or $0.16 per diluted
share. This compares to the fourth quarter 2001 net loss of $14.4 million, or
$0.45 per share. Pro forma net loss from operations for the fourth quarter of
2001 was $9.4 million, or $0.29 per share, excluding a $2.5 million
restructuring charge related to October 2001 cost containment initiatives, a
$5.6 million charge related to a technology investment, and the related tax
effect of $3.1 million.
Doug Schatz, chairman and chief executive officer, said, "Although we remain
cautious about the current industry environment, we are pleased to report a
quarter-over-quarter improvement in our operating results. Based on current
order patterns, we expect a continued increase in demand as we move into the
second quarter of 2002."
"Throughout this downturn, Advanced Energy has been aggressive in moving forward
our strategy to bring higher value solutions to our customers. We executed this
strategy through key acquisitions and through internal development programs
where we worked closely with our customers to identify and address complex
plasma manufacturing issues. The recent acquisitions of Aera, Dressler HF
Technik GmbH and Symphony Systems add key technology solutions to our product
portfolio, and will enable Advanced Energy to address a larger available market
opportunity while bringing a more comprehensive suite of subsystems to our
customers. Our technology lead is even broader now than when we entered the
industry downturn, and we will benefit from this strong position as the industry
continues to recover," said Mr. Schatz.
The Company is continuing to experience an increase in demand, and currently
expects revenues in the $53 to $57 million range and a net loss of $0.20 to
$0.23 per share for the second quarter of 2002.
FIRST QUARTER 2002 CONFERENCE CALL
Management will host a conference call today, Wednesday, April 17, 2002 at 9:00
am Eastern time to discuss the 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
706-645-9291, code 3610221. The replay will be available through Wednesday,
April 24, 2002. There will also be a webcast available at
www.advanced-energy.com.
ABOUT ADVANCED ENERGY
Advanced Energy is a global leader in the development, marketing and support of
components and sub-systems critical to plasma-based manufacturing processes used
in the production of semiconductors, flat panel displays, data storage products,
compact discs, digital video discs, architectural glass, and other applications
that require precise thin-film processes.
AE offers a comprehensive line of technology solutions in power, flow and
thermal management, plasma and ion beam sources, and integrated process
monitoring and control to original equipment manufacturers (OEMs) and end-users
around the world.
AE operates in regional centers in North America, Asia and Europe, and offers
global sales and support through direct offices, representatives and
distributors. Founded in 1981, AE is a publicly-held company traded on Nasdaq
National Market under the symbol AEIS. For more information, please visit our
corporate website: www.advanced-energy.com.
SAFE HARBOR STATEMENT
This press release contains certain forward-looking statements 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 semiconductor and semiconductor capital equipment industries, fluctuations
in quarterly and annual revenues and operating results, Advanced Energy's
ongoing ability to develop new products in a highly competitive industry
characterized by increasingly rapid technological changes, our ability to
successfully integrate acquired companies' operations, and other risks described
in Advanced Energy's Form 10-K, Forms 10-Q and other reports and statements, as
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
by contacting Advanced Energy's investor relations at 970-407-6732. The company
assumes no obligation to update the information in this press release.
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
(IN THOUSANDS EXCEPT PER SHARE DATA)
Quarter Ended March 31,
-------------------------
2002 2001
-------- --------
Sales $ 42,887 $ 74,714
Cost of sales 29,513 43,491
-------- --------
Gross profit 13,374 31,223
Operating expenses:
Research and development 11,248 12,389
Sales and marketing 6,751 6,629
General and administrative 6,798 6,174
Litigation recovery -- (1,500)
-------- --------
(Loss) income from operations (11,423) 7,531
Other (expense) income (1,997) 187
-------- --------
Net (loss) income before income taxes and minority interest (13,420) 7,718
(Benefit) provision for income taxes (4,697) 2,689
Minority interest in net loss -- (65)
-------- --------
Net (loss) income $ (8,723) $ 5,094
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Net (loss) earnings per share:
Basic $ (0.27) $ 0.16
Diluted $ (0.27) $ 0.16
Basic weighted-average common shares outstanding 31,874 31,547
-------- --------
Diluted weighted-average common shares outstanding 31,874 32,187
-------- --------
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
OTHER INFORMATION
(IN THOUSANDS EXCEPT PER SHARE DATA)
Quarter Ended March 31,
-------------------------
2002 2001
-------- --------
ADDITIONAL INFORMATION - PRO FORMA WITHOUT EXCEPTIONAL ITEMS:
Pro forma net (loss) income without exceptional items $ (8,723) $ 4,119
-------- --------
Pro forma basic (loss) earnings per share $ (0.27) $ 0.13
Pro forma diluted (loss) earnings per share $ (0.27) $ 0.13
ADDITIONAL INFORMATION - EBITDA:
(Loss) earnings before interest, taxes, depreciation and amortization $ (7,170) $ 11,219
-------- --------
Pretax EBITDA diluted EPS $ (0.22) $ 0.35
After tax EBITDA diluted EPS $ (0.15) $ 0.23
THE PRO FORMA AMOUNTS HAVE BEEN ADJUSTED TO ELIMINATE THE FOLLOWING:
Litigation recovery -- (1,500)
Income tax effect -- 525
-------- --------
$ -- $ (975)
======== ========
EBITDA RECONCILIATION
(Loss) income before income taxes and minority interest (13,420) 7,718
Interest income (940) (1,769)
Interest expense 3,298 1,288
Depreciation and amortization 3,892 3,982
-------- --------
$ (7,170) $ 11,219
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CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(IN THOUSANDS)
March 31, December 31,
2002 2001
--------- ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 43,801 $ 81,955
Marketable securities 160,996 190,023
Accounts receivable 44,858 30,812
Income tax receivable 15,910 15,862
Inventories 67,016 45,248
Other current assets 3,651 4,178
Deferred income tax assets, net 11,290 11,200
-------- --------
Total current assets 347,522 379,278
Property and equipment, net 44,179 31,095
Deposits and other 8,357 6,482
Goodwill and intangibles, net 69,447 23,072
Demonstration and customer service equipment 4,481 4,532
Deferred debt issuance costs 5,401 5,736
-------- --------
Total assets $479,387 $450,195
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable $ 16,213 $ 10,231
Other current liabilities 18,632 14,778
Current portion of long-term debt 9,977 1,130
Accrued interest payable on convertible subordinated notes 2,167 2,696
-------- --------
Total current liabilities 46,989 28,835
Long-term Liabilities:
Senior borrowings 18,544 --
Capital leases 1,055 --
Convertible subordinated notes payable 206,600 206,600
Deferred income tax liability, net 434 415
-------- --------
Total long-term liabilities 226,633 207,015
Total liabilities 273,622 235,850
Stockholders' equity 205,765 214,345
-------- --------
Total liabilities and stockholders' equity $479,387 $450,195
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS)
Three Months Ended March 31,
----------------------------
2002 2001
-------- --------
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES $ (8,889) $ 5,581
NET CASH USED IN INVESTING ACTIVITIES (26,505) (8,560)
NET CASH USED IN FINANCING ACTIVITIES (2,641) (185)
EFFECT OF CURRENCY TRANSLATION ON CASH (119) (1,779)
-------- --------
DECREASE IN CASH AND CASH EQUIVALENTS (38,154) (4,943)
CASH AND EQUIVALENTS, beginning of period 81,955 31,716
-------- --------
CASH AND EQUIVALENTS, end of period $ 43,801 $ 26,773
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