Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q3 2019 Earnings Presentation
14 slides from Advanced Energy Industries's earnings presentation, Nov 12, 2019
Slide 1: Q3 2019 Earnings Presentation
Q3 2019 Earnings Presentation November 12, 2019 Yuval Wasserman Paul Oldham President & CEO EVP & CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement The company’s guidance with respect to anticipated financial results for the fourth quarter ending December 31, 2019, potential future growth and profitability, our future business mix, expectations regarding future market trends and the company’s future performance within spec
Slide 3: Key Messages
Key Messages • Revenue and earnings exceeded high-end of guidance range ― Revenue of $175.1 million. Organic revenue of $134.2 million was above guidance range ― Non-GAAP* EPS of $0.54. Organic Non-GAAP EPS of $0.47 was also above guidance range ― Improved market conditions in Semiconductor Equipmen
Slide 4: Semiconductor Equipment
Semiconductor Equipment • Semiconductor revenue of $96.4 million, up 7% q/q ― Organic revenue at $95.5 million, up 6% sequentially, down 20% y/y. ― Sequentially, organic product revenue grew 9.4% q/q, while service declined 2.9% q/q ― Artesyn added just under $1.0 million of Semi revenue in Q3 • Dem
Slide 5: Industrial & Medical
Industrial & Medical • Industrial and Medical revenue of $55.2 million, up 23.3% q/q ― Organic revenue was $38.7 million, including service, down 13% sequentially, but met our target ― Macro environment continued to weaken, particularly in Europe and China, where demand in automotive and industrial
Slide 6: Data Center Computing and Telecom & Networking
Data Center Computing and Telecom & Networking • Data Center Computing revenue of $13.5 million in Q3 ― Market starting to recover after a period of inventory digestion ― New design wins at major hyperscale and enterprise customers expected to contribute to a strong Q4 • Telecom & Networking revenue
Slide 7: Q3 Revenue by Markets
Q3 Revenue by Markets (figures in $thousands) Q3 2019 Q2 2019 Q3 2018 Q/Q Y/Y Semiconductor Equipment $96,426 $90,058 $119,969 7% -20% Telecom & Networking $10,016 $0 $0 Data Center Computing $13,498 $0 $0 Industrial & Medical $55,187 $44,752 $53,113 23% 4% Total Revenue $175,127 $134,810 $173,082 3
Slide 8: Historical Revenue by Markets and Q3 Revenue Bridge
Historical Revenue by Markets and Q3 Revenue Bridge Figures in thousands Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 AE Semiconductor Product Revenue $136,010 $127,291 $96,360 $83,480 $67,514 $65,086 $71,222 AE Semiconductor Service Revenue $20,682 $22,428 $23,609 $23,911 $23,913 $24,972
Slide 9: Q3 2019 Income Statement
Q3 2019 Income Statement (figures in $millions, except percentage & EPS) Q3 2019 Q2 2019 Q3 2018 Q/Q Y/Y Revenue $175.1 $134.8 $173.1 29.9% 1.2% GAAP gross margin 42.0% 47.6% 49.4 GAAP operating expenses $64.1 $53.1 $45.7 20.7% 40.3% GAAP operating margin from 5.4% 8.2% 23.0% continuing ops GAAP EPS
Slide 10: Q3 2019 Balance Sheet and Cash Flow
Q3 2019 Balance Sheet and Cash Flow (figures in $millions) Q3 2019 Q4 2018 • Generated $10.5 million in cash flow from Cash & continuing operations in Q3 Investments $341.1 $351.8 • Cash and Investments balance at $341 million Accounts $250.2 $100.4 Receivable • Total Debt at $343 million Inventory
Slide 11: Q4 2019 Guidance
Q4 2019 Guidance* Q4 2019 Revenue 310M +/- 15M GAAP EPS from continuing operations $0.31 +/- $0.12 Non-GAAP** EPS $0.68 +/- $0.12 *Estimates as of Q3 2019 earnings conference call. The company assumes no obligation to update guidance. **Q4 2019 non-GAAP measures exclude the impact of non-cash relate
Slide 12: 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, minority interest, and non-recurring items such as acquisition- related costs and restructu
Slide 13: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP* Measures Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain items Three Months Ended Nine Months Ended Reconciliation of Non-GAAP measure - income September 30, June 30, September 30, excluding certain items Three Month
Slide 14: Reconciliation of Q4 2019 Guidance
Reconciliation of Q4 2019 Guidance* Low End High End Revenue $295M - $325M Reconciliation of non-GAAP** earnings per share GAAP earnings per share $0.19 - $0.43 Stock-based compensation $0.06 - $0.05 Amortization of intangible assets $0.14 - $0.14 Amortization of inventory step-up $0.10 - $0.13 Rest
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