SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): OCTOBER 13, 1997
DELAWARE 0-26966 84-0846841 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- |
(State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 1625 SHARP POINT DRIVE, FORT COLLINS, COLORADO 80525 -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) |
ITEM 5. OTHER EVENTS.
Pursuant to Form 8-K, General Instructions F, registrant hereby incorporates by reference the press release attached hereto as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Exhibit No. Description ----------- ----------- Exhibit 99 Advanced Energy Industries, Inc. Press Release dated October 13, 1997. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: October 13, 1997
ADVANCED ENERGY INDUSTRIES, INC.
By: /s/ Richard P. Beck ---------------------------------- Name: Richard P. Beck Title: Vice President, Chief Financial Officer |
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
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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
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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.
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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 --------- --------- --------- ---------- |
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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 --------- --------- --------- --------- ### |