Advanced Energy Announces Fourth Quarter Revenue of $113 Million
Advanced Energy Industries, Inc. today announced financial results for the fourth quarter ended December 31, 2012. The company posted fourth quarter sales of $113.0 million compared to $117.5 million in the third quarter of 2012 and $112.5 million in the fourth quarter of 2011. Income from continuing operations was $4.9 million or $0.13 per diluted share. On a non-GAAP basis, income from continuing operations was $6.2 million or $0.16 per diluted share. The non-GAAP measures exclude a $2.0 million restructuring charge taken in the fourth quarter. A reconciliation of non-GAAP income from continuing operations and earnings per share is provided in the tables below. The company ended the quarter with $172.2 million in cash and marketable securities, having generated $110.8 million of cash during 2012.
"With the majority of our restructuring efforts successfully implemented and a strong financial and operational platform in place, we begin the year focused on driving revenue growth," said Garry Rogerson, CEO. "Demand for our large scale inverters in the North American market remains strong, and we continue to look at expansion opportunities. In our Thin Films business, we are beginning to see signs that point to recovery in some of our markets as the year progresses. Together, these market conditions position us well for 2014, as we remain committed to our 2014 aspirational goals and actively pursue both organic and inorganic opportunities."
Thin Films sales decreased 6.1% to $53.3 million in the fourth quarter of 2012 from $56.8 million in the third quarter of 2012, and 2.0% from $54.4 million in the fourth quarter of 2011. Sales to the semiconductor market remained flat in the fourth quarter, while declines in the industrial and service markets offset the increases in flat panel display and solar panel equipment markets.
Solar Energy sales were $59.6 million in the fourth quarter of 2012, a decrease of 1.8% from $60.7 million in the third quarter of 2012, and an increase of 2.6% from $58.1 million in the fourth quarter of 2011. Demand for our products in the North American market remained solid despite the absence of year-end tax credits and incentives.
Income from continuing operations for the fourth quarter was $4.9 million or $0.13 per diluted share, compared to income from continuing operations of $5.7 million or $0.15 per diluted share in the third quarter of 2012, and loss from continuing operations of $2.6 million or $0.06 per diluted share in the same period last year. On a non-GAAP basis, excluding the impact of the $2.0 million restructuring charge, income from continuing operations was $6.2 million or $0.16 per diluted share, down from $7.6 million or $0.20 per diluted share in the third quarter of 2012.
The company incurred a $2.0 million charge this quarter related to the restructuring plan that was announced on September 28, 2011. During the quarter the company consolidated certain facilities and centralized other activities. Over time, existing cost savings along with other manufacturing cost savings initiatives and cost of goods improvements are currently expected to deliver annual savings of approximately $55 million by the end of 2014.
