Advanced Energy Announces Strong Results in Third Quarter 2019

Advanced Energy Industries, Inc. has announced financial results for the third quarter ended September 30, 2019, including;

• Q3 total revenue was $175.1 million; organic revenue was $134.2 million, above the guidance range of $123 to $133 million
• Q3 GAAP EPS from continuing operations was $0.19
• Q3 Non-GAAP EPS was $0.54; before acquisition, non-GAAP EPS was $0.47, also above the guidance range of $0.28 to $0.38

“We delivered a strong third quarter, with both organic revenue and non-GAAP earnings above the high-end of our guidance ranges. Demand for our products in the semi equipment market is improving on increased foundry/logic investments and the beginning of investment in memory,” said Yuval Wasserman, president and CEO.

“We closed the acquisition of Artesyn Embedded Power slightly ahead of schedule, adding incremental revenue and non-GAAP earnings to the third quarter. We have started the integration process and I am pleased with our progress,” Wasserman concluded.

Third Quarter Results

Sales were $175.1 million in the third quarter of 2019 compared with $134.8 million in the second quarter of 2019 and $173.1 million in the third quarter of 2018.

GAAP net income from continuing operations was $7.3 million or $0.19 per diluted share, compared with $23.4 million or $0.61 per diluted share in the prior quarter, and $35.2 million or $0.90 per diluted share in the third quarter of 2018.

Non-GAAP net income was $20.9 million or $0.54 per diluted share in the third quarter of 2019. This compares with $17.2 million or $0.45 per diluted share in the second quarter of 2019, and $41.2 million or $1.05 per diluted share in the third quarter of 2018. Non-GAAP net income in the third quarter of 2019 included $2.9 million or $0.07 per diluted share earnings contribution, including financing cost, from the acquisition of Artesyn Embedded Power.

The company generated $10.5 million of operating cash from continuing operations in the quarter.