Advanced Energy Industries, Inc. announced financial results for the fourth quarter and fiscal year ended December 31, 2019, including: Q4 revenue was $338.3 million, above the guidance range of $295 million to $325 million, driven by significant sequential growth in semiconductor equipment and data center computing; Q4 GAAP EPS from continuing operations was $0.27; and Q4 Non-GAAP EPS was $0.87, above the high end of the guidance range of $0.56 to $0.80.
"Our fourth quarter marked a strong finish to fiscal year 2019, with quarterly revenue and non-GAAP earnings per share above our guidance ranges. We continue to benefit from the results of our past design wins as they transition into solid incremental revenue growth and market share gains. The semiconductor equipment and data center computing markets were particularly strong this quarter, with our semiconductor revenues growing 30% sequentially," said Yuval Wasserman, president and CEO.
"Further, the integration of Artesyn Embedded Power is progressing very well. We have identified and started to implement actions to achieve our synergies target and to capture exciting potential revenue growth opportunities."
Summary of Fourth Quarter Results
Sales were $338.3 million in the fourth quarter of 2019 compared with $175.1 million in the third quarter of 2019 and $154.2 million in the fourth quarter of 2018.
GAAP net income from continuing operations was $10.5 million or $0.27 per diluted share, compared with $7.3 million or $0.19 per diluted share in the prior quarter, and $19.2 million or $0.50 per diluted share in the fourth quarter of 2018. Both GAAP and non-GAAP operating expenses in the fourth quarter of 2019 include a one-time pre-tax reserve of $4.2 million.
Non-GAAP net income was $33.4 million or $0.87 per diluted share in the fourth quarter of 2019. This compares with $20.9 million or $0.54 per diluted share in the third quarter of 2019, and $28.0 million or $0.73 per diluted share in the fourth quarter of 2018.
The company generated $19.0 million of operating cash from continuing operations in the quarter.
Full Year 2019 Results
- Sales were $788.9 million in 2019 compared with $718.9 million in 2018, an increase of 9.7%.
- GAAP net income from continuing operations was $56.5 million or $1.47 per diluted share in 2019 compared with $147.1 million or $3.74 per diluted share in 2018.
- Non-GAAP net income was $93.9 million or $2.44 per diluted share in 2019 compared to $172.0 million or $4.37 per diluted share in 2018. A reconciliation of non-GAAP measures is provided in the tables below.
- The company generated $47.9 million of operating cash from continuing operations in 2019 and ended the year with $349.1 million in cash and marketable securities.