Advanced Energy Announces Sales of PV Inverters Down 16% in the First Quarter
Advanced Energy Industries, Inc. reported sales for the first quarter ended March 31, 2013, of $111.8 million compared to $113.0 million in the fourth quarter of 2012 and $105.8 million in the first quarter of 2012. Income from continuing operations was $6.8 million or $0.17 per diluted share. On a non-GAAP basis, income from continuing operations was $11.7 million or $0.29 per diluted share. The non-GAAP measures exclude, on an after tax basis, $2.0 million of intangible amortization, $1.8 million of stock-based compensation and $1.0 million of acquisition related costs. The company ended the quarter with $182.3 million in cash and marketable securities, having grown cash by $10 million during the quarter.
Solar Energy sales were $50.0 million in the first quarter of 2013, a decrease of 16.1% from $59.6 million in the fourth quarter of 2012, and an increase of 10.1% from $45.4 million in the first quarter of 2012. In addition to first quarter seasonality, revenue from commercial applications was slower than anticipated due to some financing and permitting delays.
Thin Films sales were $61.8 million in the first quarter of 2013, a 15.8% increase from $53.3 million in the fourth quarter of 2012, and a 2.3% increase from $60.4 million in the first quarter of 2012. The increase was driven primarily by improvement in semiconductor applications and healthy growth in flat panel display, along with increases across most other applications with the exception of thin film renewables.
"We began 2013 with a sound first quarter," said Garry Rogerson, CEO. "Having successfully established a highly efficient global distribution model, with localized R&D and streamlined manufacturing, we have laid the foundation for future growth. The recent acquisition of REFUsol positions our Solar Energy business for significant growth over the next two years by enhancing our product line, applications and geographic reach. While we expect this acquisition to be accretive in the next 12 months, we anticipate it to negatively impact earnings over the next 6 months. Together with the improving outlook for our Thin Films business, we are poised to achieve our aspirational goals."
Income from continuing operations for the first quarter was $6.8 million or $0.17 per diluted share, compared to income from continuing operations of $4.9 million or $0.13 per diluted share in the fourth quarter of 2012, and income from continuing operations of $0.8 million or $0.02 per diluted share in the same period last year. On a non-GAAP basis, excluding the impact of the items mentioned above, income from continuing operations was $11.7 million or $0.29 per diluted share, up from $8.9 million or $0.23 per diluted share in the fourth quarter of 2012.
With the recent acquisition of REFUsol, the company is undertaking a major restructuring to take advantage of additional cost saving opportunities. These activities will include the consolidation of certain facilities, product rationalization and further centralization of manufacturing. As a result, the company anticipates a second quarter restructuring charge of approximately $23 to $26 million, of which $20 to $23 million will be non-cash in nature. The total planned charges for this new initiative incurred over the next 9 months will be in the range of $30 to $35 million, of which $22 to $27 million will be non-cash in nature. The company expects the restructuring to provide additional cost savings in the range of $18 to $20 million annually, including approximately $14 million of cash savings. The cost savings activities, along with those previously announced are expected to deliver annual savings of approximately $70 to $75 million by 2014.
The company anticipates second quarter 2013 results from continuing operations to be within the following ranges: Sales of $132 million to $145 million; Earnings per share of $0.10 to $0.20, excluding restructuring charges; and Non-GAAP earnings per share of $0.18 to $0.28.
