Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q2 2024 Earnings Presentation
13 slides from Advanced Energy Industries's earnings presentation, Jul 30, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation JULY 30, 2024 1
Slide 2: Safe Harbor
SAFE HARBOR The company’s guidance and other statements herein or made on the earnings conference call contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Ac
Slide 3: Q2 2024 Summary
Q2 2024 SUMMARY • Q2 2024 revenue and EPS exceeded guidance ‒ Revenue of $365 million was up 11% Q/Q with sequential revenue growth in three of our four markets ‒ Upside driven by AI-related demand in Data Center Computing and accelerated deliveries in Semiconductor ‒ Gross margin up quarter over qu
Slide 4: Q2 2024 Revenue Detail by Market
Q2 2024 REVENUE DETAIL BY MARKET ($ in millions) INDUSTRIAL & MEDICAL Down 5% Q/Q & 38% Y/Y SEMICONDUCTOR EQUIPMENT $79M • Customers continued to work through pockets Q2 2024 of inventory, but distribution sell-through Up 5% Q/Q & 9% Y/Y Total Revenue increased quarter over quarter $25M $188M • Desi
Slide 5: Q2 2024 Financial Highlights
Q2 2024 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) $365 million 35.3% $7 million Up 11% Q/Q Up 20 bps Q/Q Includes annual tax payment NON-GAAP EPS(1) NON-GAAP OP MARGIN(1) TOTAL CASH(3) $0.85 9.3% $986 million Up 47% Q/Q Up 270 bps Q/Q Net Cash of $79 million (1) De
Slide 6: Revenue by Market
REVENUE BY MARKET ($ in millions) Q2 2024 Q1 2024 Q2 2023 Q/Q Y/Y Semiconductor Equipment $188.3 $179.9 $173.2 4.7% 8.7% Industrial & Medical $79.1 $83.4 $127.6 -5.2% -38.0% Data Center Computing $73.0 $41.9 $59.1 74.1% 23.5% Telecom & Networking $24.6 $22.3 $55.7 10.4% -55.9% Total Revenue $364.9 $
Slide 7: Income Statement (GAAP/Non-GAAP)
INCOME STATEMENT (GAAP/NON-GAAP) ($ in m illions, except per share data) Q2 2024 Q1 2024 Q2 2023 Q/Q Y/Y Revenue $364.9 $327.5 $415.5 11.4% -12.2% GAAP gross margin 35.0% 34.5% 35.4% GAAP operating expenses $114.8 $112.2 $117.3 2.3% -2.1% GAAP operating margin from continuing ops 3.6% 0.2% 7.2% GAAP
Slide 8: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW ($ in millions) Q2 2024 Q1 2024 Q2 2023 Cash $986.1 $1,017.8 $455.4 • Total Cash declined slightly Q/Q to $986 million ‒ Net cash(1) at $79 million Inventories $383.1 $361.3 $392.3 • Inventory Turns increased Q/Q from 2.4x to 2.5x Accounts Receivable $262.4 $247.5 $258.8 ‒
Slide 9: Q3 2024 Guidance
Q3 2024 GUIDANCE ($ in millions, except per share data) Guidance Revenue $370 +/- $20 GAAP EPS from continuing operations ($0.10) +/- $0.25 Non-GAAP(1) EPS $0.90 +/- $0.25 (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of t
Slide 10: Quarterly Non-GAAP Financials
QUARTERLY NON-GAAP FINANCIALS(1) Quarterly Trend (figures in $ millions, except percentage and EPS) All figures from Continuing Operations 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Revenue 351.6 361.3 346.1 396.9 397.5 440.9 516.3
Slide 11: Non-GAAP Measures
NON-GAAP MEASURES Advanced Energy’s non-GAAP measures exclude the impact of non-cash related charges such as stock-based compensation and amortization of intangible assets, as well as discontinued operations, and non-recurring items such as acquisition-related costs and restructuring expenses. The n
Slide 12: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Copyright © 2024 Advanced Energy 12
Slide 13: Q3 2024 Reconciliation of GAAP to Non-GAAP Guidance
Q3 2024 RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE ($ in millions, except per share data) Low End Midpoint High End Revenue $350 $370 $390 Reconciliation of Non-GAAP EPS GAAP EPS $ (0.35) $ (0.10) $ 0.15 Stock-based compensation 0.28 0.28 0.28 Amortization of intangible assets 0.19 0.19 0.19 Restru
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