*AV* -- AEIS Reported its Quarter.
Wednesday February 11, 4:00 pm Eastern Time
Company Press Release
SOURCE: Advanced Energy Industries, Inc.
Advanced Energy Industries Has Record Year; Strong Results Posted
for Fourth Quarter and Fiscal 1997
FORT COLLINS, Colo., Feb. 11 /PRNewswire/ -- Advanced Energy Industries, Inc. (Nasdaq: AEIS - news) reported record revenues for
the fourth quarter and fiscal year 1997.
Net sales for the fourth quarter increased 128% from the prior year to
$46.0 million. Gross margin for the fourth quarter of 1997 increased
to 37.6% versus 36.9% in the fourth quarter of 1996.
Net income for the fourth quarter was $5.8 million, or 25 cents per
share on a diluted basis, compared with net income of $686,000, or
three cents per share, a year ago -- an increase of 745%. Included in
net income for the fourth quarter was $300,000 in insurance money
collected from the storm damage incurred at the Company's main
facility in July 1997. Diluted average shares outstanding for the
fourth quarters of 1997 and 1996 were 23,112,000 and 21,728,000,
respectively.
For the year ended December 31, 1997, Advanced Energy reported net
sales of $141.9 million, which is a 43.5% increase from 1996 net sales
of $98.9 million. Gross margin for the year 1997 was 38.3% versus
37.2% in 1996.
Net income for 1997, excluding one-time charges, was $15.1 million, or
68 cents per share. Including the charges, net income was $10.4
million, or 47 cents per share, compared with net income of $5.1
million, or 24 cents per share, in 1996. Operating expenses from
one-time charges totaling $5.8 million were taken in fiscal 1997.
These charges included a $2.7 million charge taken for storm damage
during heavy rains in the Fort Collins area 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 1997, excluding the
one-time charges, would have been $22.8 million compared with $8.2
million in 1996, an increase of 178%.
Advanced Energy ended the year with $31.6 million of cash and
marketable securities, $66.7 million of working capital, $112.2
million of total assets, and $87.3 million of stockholders' equity.
Douglas S. Schatz, president and chief executive officer, said that
the acquisition of Tower Electronics, which occurred in the third
quarter of 1997, would bring an estimated $17 million of additional
revenue to the Company in 1998. ''In 1997, we made substantial
progress in positioning Advanced Energy to enter new, emerging markets
which will further diversify our revenue stream. The acquisition of
Tower Electronics enables us to make further inroads in the industrial
market, as well as telecommunications and computer systems. One of our
primary goals for 1998 is to further leverage our technological and
market leadership position to capitalize on opportunities in new and
existing markets.''
Commenting on the impact of Asia on its business, Schatz said, ''The
company did not experience any shortfall in revenues during the year
related to the Asia crisis. This is due to the fact that only 10% of
the Company's revenues were directly derived from Asia, in 1997,
particularly Japan. However, a substantial portion of our customers'
business is affected by Asia, and indirectly impacts us as well.
Therefore, we join popular sentiment throughout the industry by
viewing Asia with limited visibility. On a more positive note, the
Company has historically experienced market share gains even through
market downturns.''
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 storage media, flat panel
displays, and other products using thin-film technology. Within its
comprehensive product portfolio of direct current (DC),
/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.
Andrew |
