FOR MORE INFORMATION, CONTACT:
RICHARD BECK THE FINANCIAL RELATIONS BOARD
CHIEF FINANCIAL OFFICER CATHERINE ROBERTS (INVESTORS)
ADVANCED ENERGY INDUSTRIES FRANK THORSBERG (MEDIA)
T: 970/407-6204 T: 415/986-1591
BETSY TRUAX (GENERAL INFO)
T: 208/233-8323
FOR IMMEDIATE RELEASE:
MONDAY, OCTOBER 13, 1997
ADVANCED ENERGY INDUSTRIES REPORTS THIRD QUARTER RESULTS
FOR 1997
FORT COLLINS, CO -- OCTOBER 13, 1997 -- Advanced Energy Industries, Inc.
(Nasdaq:AEIS) reported improved revenues and net income for the third quarter of
1997. Net sales grew 97% from a year ago, while net income increased despite
the Company's reporting of one-time charges totaling $6.1 million.
For the quarter ended September 30, 1997, Advanced Energy reported net sales of
$42.6 million, a 97% improvement over net sales reported a year ago, and a 30%
improvement over net sales in the second quarter of 1997 of $32.7 million.
Gross margin increased to 40% for the third quarter of 1997, compared with 30.5%
a year ago and 38.4% in the second quarter of 1997.
Net income for the third quarter of 1997 was $517,000, or two cents per share,
compared with net income of $123,000, or a penny per share, a year ago.
Weighted average shares outstanding for the third quarters of 1997 and 1996 were
22,402,000 and 21,622,000, respectively.
The 1997 third quarter improvement in net income was reported despite an
increase in operating expenses from one-time charges totaling $6.1 million.
These charges included a $3.0 million charge taken for storm damage during heavy
rains in the Fort Collins area
--MORE--
ADVANCED ENERGY INDUSTRIES, INC.
PAGE TWO
on July 29, 1997, and a $3.1 million charge for purchased in-process research
and development efforts of Tower Electronics expensed immediately upon the
acquisition of Tower Electronics.
Operating income for the third quarter of 1997, excluding the one-time charges,
would have been $8.7 million compared with $109,000 in the comparable period in
1996 and $5.0 million in the second quarter of 1997. Net income for the
quarter, excluding the one-time charges, would have been $5.5 million, or 24
cents per share.
The 81% tax provision in the third quarter of 1997 exceeds the normal tax
provision for the Company because certain of the charges are not tax deductible.
NINE-MONTH RESULTS
For the nine months of 1997, Advanced Energy reported net sales of $95.9
million, a 22% increase over the comparable period. Net income, including the
storm damage and purchased in-process R&D, was $4.6 million, or 21 cents per
share, compared with net income of $4.5 million, or 21 cents per share, a year
ago. Without the one-time charges, net income for the nine months of 1997 would
have been $9.5 million or 43 cents per share.
Advanced Energy ended the third quarter of 1997 with $9.3 million of cash, $42.4
million of working capital, $87.4 million of total assets, and $51.9 million of
stockholders' equity. Long-term debt increased to $14.7 million primarily due
to the debt incurred in connection with the acquisition of Tower Electronics.
SAFE HARBOR STATEMENT
Except for any historical information contained herein, the matters discussed in
this news release are forward-looking statements that involve risks and
uncertainties, including the achievement of goals established by the Company to
improve gross margin and maintain operating expenses in line with revenue,
continued sales growth in non-semiconductor areas, and other risks detailed from
time to time in reports to the Securities and Exchange Commission, including the
Company's Form 10-K and Forms 10-Q. The Company continues to be susceptible to
fluctuations in quarterly and annual revenues and operating results. The
Company assumes no obligation to update the information in this release.
ABOUT THE COMPANY
Advanced Energy Industries, Inc. was founded in 1981 and is a leading
manufacturer of power delivery systems that are critical in the manufacturing of
semiconductors, data
-- MORE --
ADVANCED ENERGY INDUSTRIES, INC.
PAGE THREE
storage media, flat panel displays, and other products using thin-film
technology. Within its comprehensive product portfolio of direct current (DC),
low/mid-frequency and radio frequency (RF) solutions, the Company sells hundreds
of different products critical in applications ranging from compact disks,
digital video disks, flat panel displays, the most popular logic semiconductor
devices, among many other applications. The Company's stock is traded on Nasdaq
under the symbol AEIS.
-- TABLES FOLLOW --
ADVANCED ENERGY INDUSTRIES REPORTS THIRD QUARTER RESULTS
PAGE FOUR
CONSOLIDATED INCOME STATEMENTS
(IN THOUSANDS EXCEPT PER SHARE DATA)
Quarter Ended September 30, Nine Months Ended September 30,
1997 1996 1997 1996
--------------------------- -------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $ 42,571 $ 21,639 $ 95,928 $ 78,636
Cost of sales 25,538 15,047 58,835 49,286
--------- --------- --------- ----------
Gross profit 17,033 6,592 37,093 29,350
Operating expenses:
Research and development 4,072 3,349 10,406 10,491
Sales and marketing 2,329 2,201 6,464 6,532
General and administrative 1,943 933 4,893 4,989
Storm damage 3,000 0 3,000 0
Purchased in-process
research and development 3,080 0 3,080 0
--------- --------- --------- ----------
Operating income 2,609 109 9,250 7,338
Other income (expense) 54 97 (46) (139)
--------- --------- --------- ----------
Income before income taxes 2,663 206 9,204 7,199
Income taxes 2,146 83 4,632 2,741
--------- --------- --------- ----------
Net income $ 517 $ 123 $ 4,572 $ 4,458
Net income per share 0.02 0.01 0.21 0.21
Number of shares used in
per share calculations 22,402 21,622 22,073 21,645
--------- --------- --------- ----------
- MORE -
ADVANCED ENERGY INDUSTRIES REPORTS THIRD QUARTER RESULTS
PAGE FIVE
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30, December 31,
ASSETS 1997 1996
------------- ------------
(unaudited) (audited)
Current Assets:
Cash and cash equivalents $ 9,250 $ 11,231
Accounts receivable 34,585 16,116
Inventories 20,911 13,976
Prepaid expenses and other
current assets 1,648 1,013
Deferred income taxes 1,280 1,223
--------- ---------
Total current assets 67,674 43,559
Property and equipment, net 10,587 9,500
Other assets 1,784 2,972
Goodwill 7,335 0
--------- ---------
Total assets $ 87,380 $ 56,031
--------- ---------
--------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 13,233 $ 2,253
Other current liabilities 6,095 3,718
Accrued income taxes payable 1,423 1,485
Current portion of long-term debt 4,495 924
--------- ---------
Total current liabilities 25,246 8,380
Long-term debt 10,220 1,127
Deferred income tax liability 28 28
Stockholders' equity 51,886 46,496
--------- ---------
Total liabilities and stockholders' equity $ 87,380 $ 56,031
--------- ---------
--------- ---------
###