Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the first quarter ended March 31, 2020. The company posted first quarter sales of $137.7 million, operating income of 17.7%, and earnings of $0.43 per diluted share from continuing operations.
“Advanced Energy had another quarter of solid financial and organizational performance. Our strategy to transition the company to a diversified business model paid dividends this quarter as increased shipments in our thin films business minimized the seasonality of our renewables business”
“Advanced Energy had another quarter of solid financial and organizational performance. Our strategy to transition the company to a diversified business model paid dividends this quarter as increased shipments in our thin films business minimized the seasonality of our renewables business,” said Dr. Hans Betz, chief executive officer.
Total revenue of $137.7 million was split between Thin Films at $100.1 million and $37.6 million in the Renewables Business Unit. Thin films sales were primarily driven by strength in the semiconductor market. Renewables sales were impacted by the North American market first quarter seasonality, but delivered record bookings of $65.5 million for the quarter.
“We are very excited about our announcement today that our inverters have been chosen for two major Utility projects: a 150MW project with Zachry in Arizona and a 35MW project in California with Cupertino Electric, demonstrating the differentiated reliability and efficiency of our inverters and the subsequent impact on the levelized cost of energy. We are seeing a growing number of larger, Utility scale projects as the solar market continues its expansion,” said Dr. Hans Betz, chief executive officer.
Operating income grew to $24.4 million or 17.7% of revenue, the 8th consecutive quarter of improved operating results. This continued strength was the result of our aggressive management of operating expenses as we continue to refine our strategic business units. Net income from continuing operations was $18.8 million or $0.43 per diluted share, compared to net income from continuing operations of $19.7 million or $0.45 per diluted share in the fourth quarter of 2010. This decline was due to an increase in the company’s effective tax rate to 25% in the first quarter of 2011 from 19% in the fourth quarter of 2010.
Bookings for the first quarter were $184.0 million, compared to $83.2 million in the first quarter of 2010.
Thin Films Business Unit
Thin Films business unit sales climbed to $100.1 million versus $67.4 million in the same period of 2010, a 49% improvement year over year. This growth reflects the continued strength in the semiconductor industry and demonstrated our strength in advanced power solutions for Etch and Deposition applications. We also benefitted from another strong quarter in the solar panel and glass market as we continue to leverage our leading position in crystalline silicon processing equipment and strategic customer relationships to address the current growth in China.
Renewables Business Unit
Renewables business unit sales were $37.6 million in the quarter versus $2.3 million in the same period of 2010. This significant year over year improvement reflects the acquisition of PV Powered as well continued growth of the North American solar market. Our focus on building a leading position in the strategic commercial and Utility segments of the inverter market continued this quarter with record bookings reflecting the many growth opportunities ahead.
Source: Business Wire
