Advanced Energy Reports 2008 Second Quarter Financial Results Driven By Growth In Solar Market
Advanced Energy Industries, Inc. (AEIS) announced financial results for the second quarter ended June 30, 2008. Sales of $88.0 million were driven by a 36% sequential increase in sales to non-semiconductor markets, which reached 48% of our total sales.
Sales to the solar market led the way, topping 14% of total sales for the quarter, while service revenues also hit a record high. Total second quarter sales declined 1% versus the first quarter of 2008, and declined 14.6% from $103.0 million in the second quarter of 2007, which the company states were both due to the continued weakness in the semiconductor capital equipment market. AEIS also stated that its book to bill ratio for the quarter was strong at 1.05:1.
Gross margin for the second quarter was 40.1% versus 43.6% in the second quarter of 2007 due to lower sales and the related overhead absorption. Sequentially, gross margins were fractionally down from 40.3% in the first quarter of 2008.
Net income for the second quarter of 2008 was $5.9 million, or $0.14 per diluted share, as cost reduction efforts controlled our operating expenses, compared to $11.7 million, or $0.25 per diluted share in the second quarter of 2007. Net income decreased sequentially from $6.0 million in the first quarter of 2008, but earnings per diluted share for the second quarter of 2008 were slightly higher due to shares repurchased during the quarter.
"We executed on our diversification strategy, growing non-semiconductor revenue to record levels this quarter. Sales in each of our major non-semiconductor markets demonstrated strong growth, and demand for our products in the solar market reached its highest level yet," said Dr. Hans Betz, President and CEO of Advanced Energy. "Further, we believe our ability to address these emerging markets will serve us well as we develop new applications for our technology and navigate through this cycle in the semiconductor market."
