Advanced Energy Industries, Inc. announced financial results for the second quarter ended June 30, 2006. Sales were $104.6 million for the second quarter of 2006, up 11.3% compared to $94.0 million for the first quarter of 2006, and up 24.2% compared to $84.2 million in the second quarter of 2005. Gross profit was $44.8 million, or 42.8% of sales, in the second quarter of 2006, compared to $38.6 million, or 41.0% of sales, in the first quarter of 2006, and $30.6 million, or 36.4% of sales, in the second quarter of 2005.
Second quarter 2006 income from operations was $19.2 million, or 18.4% of sales, an increase of 45.9% compared to $13.2 million, or 14.0% of sales in the first quarter of 2006. This compares to second quarter 2005 income from operations of $5.0 million, or 6.0% of sales. Second quarter 2005 income from operations includes $1.1 million of restructuring charges. Second quarter 2006 net income was $18.2 million, or $0.40 per diluted share, up 42.3% compared to net income of $12.8 million, or $0.28 per diluted share in the first quarter of 2006, and $5.9 million, or $0.18 per diluted share in the second quarter of 2005. Revenue for the six months ended June 30, 2006 was $198.5 million compared to $166.3 million for the first six months of 2005. Net income for the first six months of 2006 was $30.9 million, or $0.69 per diluted share, compared to $6.7 million, or $0.20 per diluted share for the first six months of 2005.
Dr. Hans Betz, President and CEO of Advanced Energy, said, "Sales to semiconductor, flat panel display and architectural glass customers drove much of the second quarter demand with double-digit sequential growth in all three of these core markets. Unit sales of our Pinnacle DC power conversion system, a long-time market leader for a range of PVD applications in our core markets, reached an all-time record level. The recent announcements of power system orders from three solar panel manufacturers further demonstrate our success in leveraging our product portfolio across core and emerging market opportunities."
Dr. Betz continued, "The results of our second quarter exceeded our target financial performance. We delivered 43% incremental operating margins for every revenue dollar above $60 million. These are goals that we've been driving toward for the past twelve months, and I thank Advanced Energy's employees for their major contributions and successful execution of these critical corporate objectives. We continue to focus on further improving our financial performance and expanding our market presence in profitable growth areas."
