Advanced Energy Industries has reported Q1 sales of $140.9M, representing a 26.1 percent increase versus the same quarter last year and a 7.6 percent decrease from last quarter of $152.6 million. Net income was $14.7M at the end of the quarter.
The company has also more than doubled its operating profit and earnings per share, compared to last year.
In a related development the company announced Gordon Tredger, president of Advanced Energy Industries solar unit, resigned from his post and will receive a total of $241,000 as nine months’ base salary from the company. Advanced Energy will pay Tredger an additional $16,000 for eight months of benefits.
The company had $123 million in cash and investments at the end of the quarter, said Danny C. Herron – chief financial officer and executive vice president. Sales through data storage and industrial applications rose 40 percent to $11 million from $7.9 million last quarter due in part to the addition of the Thyro family product line from its acquisition of AEG’s power control modules in January.
Flat panel display applications fell 40 percent sequentially to $2.2 million as touch panel diodes slowed and tool builders integrated recent PVD shipment. Inverter sales decreased 10.6 percent sequentially to $58.1 million in the first quarter due to a confluence of market forces, including severe winter weather delays and product transition.
Sales to renewable applications declined 64 percent sequentially to $1.6 million from $4.4 million last quarter due primarily to delayed glass buys in China. Sales to semiconductor applications decreased 5.1 percent sequentially to $56.3 million as we came off the peak seen in the fourth quarter.
GAAP net income was $14.7 million in the first quarter, including $260,000 acquisition-related expenses. This compares to $34 million in the fourth quarter and $6.8 million in the same period last year.
Advanced Energy Industries invested cash in 2 strategic acquisitions over the last few months. The company’s precision power conversion product lines grew significantly over the same quarter the previous year. For example, the new Pulse RF and bipolar DC products are making inroads into existing and new applications that were not served before.
Since the end of the quarter, shipments of the megawatt and 3-phase string inverters into North America have increased, and the company has continued to gather large supply contracts with key customers.
With four acquisitions now complete, the company’s presence in a number of new areas should allow them access to multiple growth opportunities, the company said. For example, the acquisition of HiTek strengthens and diversifies the company’s position in semiconductors and provides entry into an entirely new and large stable of applications, such as mass spectrometry, X-ray, significantly increasing our total available market.
The company’s acquisition of AEG’s power control modules contributed to their industrial expansion this quarter, and improved the penetration of precision power delivery where precise measurements and control are required.
Revenue from their precision power product line declined slightly this quarter, down 5 percent from last quarter to $83 million. While semiconductor applications moderated after the exceptional fourth quarter, industrial applications performed well, in part reflecting the company’s strategic expansion in key markets.
For the second quarter of the year, the company expects revenues to be between $135 million and $145 million despite an effective tax rate of approximately 12 percent to 14 percent in 2014 given the expected geographic breakdown of profits.