UNITED STATES SECURITIES AND EXCHANGE COMMISSION
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): February 12, 2004
ADVANCED ENERGY INDUSTRIES, INC.
Delaware
000-26966
84-0846841
(State of
(Commission File Number)
(IRS Employer
incorporation)
Identification No.)
1625 Sharp Point Drive, Fort Collins, Colorado 80525
(970) 221-4670
Not Applicable
Item 12. Results of Operations and Financial Condition | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX | ||||||||
Fourth Quarter 2003 Earnings Release |
Item 12. Results of Operations and Financial Condition
On February 12, 2004 Advanced Energy Industries, Inc. (the Company) announced via press release the Companys results for its three- and twelve-month periods ended December 31, 2003. A copy of the Companys press release is attached hereto as Exhibit 99.1.
The information in this Current Report on Form 8-K, including the exhibit, is furnished pursuant to Item 12 and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, the information in this Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.
SIGNATURES
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.
ADVANCED ENERGY INDUSTRIES, INC. | ||||||
By: | /s/ Michael El-Hillow | |||||
|
||||||
Name:
Title: |
Michael El-Hillow
Executive Vice President and Chief Financial Officer |
Date: February 12, 2004
EXHIBIT INDEX
Exhibit No.
Description
99.1
Fourth Quarter 2003 Earnings Release dated February 12, 2004.
EXHIBIT 99.1
CONTACTS:
Mike El-Hillow
Cathy Kawakami
Executive 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 FOURTH QUARTER AND YEAR-END 2003 RESULTS
Fort Collins, Colorado (February 12, 2004)- Advanced Energy (Nasdaq: AEIS) today reported financial results for the fourth quarter and year ended December 31, 2003. Advanced Energy is a leading global provider of critical solutions used in the production of semiconductors, flat panel displays, data storage products and other advanced applications.
Fourth Quarter Review
For the 2003 fourth quarter, revenue was $74.7 million, up 30 percent from
$57.4 million for the fourth quarter of 2002, and up 9 percent compared to
$68.6 million for the third quarter of 2003. The company generated income from
operations of $319,000 for the fourth quarter of 2003, compared to a loss from
operations of $5.7 million for the third quarter of 2003.
The net loss for the fourth quarter of 2003 was $2.4 million, or $0.08 per share, compared to the net loss of $22.0 million, or $0.68 per share, for the fourth quarter of 2002 and a net loss of $27.4 million, or $0.85 per share, for the third quarter of 2003. The fourth quarter of 2002 includes pre-tax charges of $13.1 million relating to excess and obsolete inventory and warranty reserves, and other items. The third quarter 2003 net loss included a non-cash charge of $22.4 million related to a reduction in the carrying value of the Companys net deferred tax assets.
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ADVANCED ENERGY REPORTS FOURTH QUARTER AND YEAR END RESULTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 2
Full Year Review
Doug Schatz, chairman and chief executive officer, said, Industry fundamentals are improving, and we are experiencing strong demand in all product groups, primarily driven by our semiconductor and flat panel customers. Our sales to semiconductor original equipment manufacturers (OEMs) in the fourth quarter of 2003 increased 22 percent compared to the 2003 third quarter, and sales to flat panel display OEMs increased 38 percent from the prior quarter. Our ability to secure key designs in high-growth semiconductor segments such as 300mm etch and chemical vapor deposition (CVD) puts us in a strong position to benefit as the industry accelerates its transition to larger wafers, as well as to smaller line widths and advanced materials such as copper and low-k dielectrics.
In this accelerating order environment, we continue to focus on improving internal efficiencies and cost control. The initial improvements have shown through in our fourth quarter performance, and we posted income from operations for the first time in ten quarters. Looking ahead, we expect to gain greater leverage from the changes we have made, such as our manufacturing operation in China and our transition to a world-class Asian supply base.
Based on our strong market position and the continued order momentum, we anticipate first quarter revenue in the $95 to $100 million range and earnings per share in the range of $0.12 to $0.17, said Mr. Schatz.
Fourth Quarter and Year-End Conference Call
There will also be a webcast available on the Advanced Energy Website, www.advanced-energy.com.
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ADVANCED ENERGY REPORTS FOURTH QUARTER AND YEAR END RESULTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 3
About Advanced Energy
Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, plasma and ion beam sources, and integrated process monitoring and control for original equipment manufacturers (OEMs) and end-users around the world.
Advanced Energy 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, Advanced Energy is a publicly held company traded on the Nasdaq National Market under the symbol AEIS. For more information, please visit our corporate website: www.advanced-energy.com.
Safe Harbor Statement
###
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three Months Ended December 31,
Twelve Months Ended December 31,
2003
2002
2003
2002
$
74,731
$
57,444
$
262,402
$
238,898
48,100
52,970
174,455
170,138
26,631
4,474
87,947
68,760
12,750
12,975
51,647
48,995
7,095
9,739
31,015
34,940
4,250
7,556
18,324
25,110
1,199
1,904
4,612
5,423
5,313
1,018
5,840
4,306
9,060
1,904
1,175
1,904
26,312
39,918
111,079
130,745
319
(35,444
)
(23,132
)
(61,985
)
(1,957
)
1,663
(9,308
)
(1,707
)
(1,638
)
(33,781
)
(32,440
)
(63,692
)
(801
)
11,824
(11,801
)
22,293
$
(2,439
)
$
(21,957
)
$
(44,241
)
$
(41,399
)
$
(0.08
)
$
(0.68
)
$
(1.37
)
$
(1.29
)
32,433
32,111
32,271
32,026
(1) In the fourth quarter of 2002, Advanced Energy recorded again on the extinguishment of debt, net of related income taxes, as a result of the Company's previously announced repurchase of a portion of its convertible debt. The gain was previously reported as an extraordinary gain, net of related tax effects. In connection with the issuance of Statement of Financial Accounting Standards No. 145, the gain before any tax effect has been reclassified to other (expense) income. The loss before income taxes and income tax benefit were adjusted accordingly.
(2) In the fourth quarter of 2002, Advanced Energy recorded charges of $11.5 million as cost of sales for excess and obsolete inventory and warranty reserves.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
December 31,
December 31,
2003
2002
$
41,522
$
70,188
93,691
102,159
61,927
43,885
151
14,720
65,703
57,306
5,486
6,828
--
17,510
268,480
312,596
44,725
41,178
5,630
5,181
88,943
86,601
3,019
4,091
3,934
6,086
$
414,731
$
455,733
$
23,066
$
16,055
28,216
31,064
8,582
15,197
2,460
2,338
62,324
64,654
6,168
10,665
2,015
694
4,672
8,663
187,718
187,718
200,573
207,740
262,897
272,394
151,834
183,339
$
414,731
$
455,733
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Twelve Months Ended December 31,
2003
2002
$(12,986
)
$(15,305
)
(8,590
)
24,311
(8,608
)
(22,634
)
1,518
1,861
(28,666
)
(11,767
)
70,188
81,955
$
41,522
$
70,188