Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q4 2019 Earnings Presentation
16 slides from Advanced Energy Industries's earnings presentation, Feb 18, 2020
Slide 1: Q4 2019 Earnings Presentation
Q4 2019 Earnings Presentation FEBRUARY 18, 2020 Copyright © 2020 Advanced Energy 1
Slide 2: Safe Harbor
SAFE HARBOR The company’s guidance with respect to anticipated financial results for future periods, potential future growth and profitability, future business mix, expectations regarding future market trends, future performance within specific markets and other statements herein or made on the conf
Slide 3: Key Messages
KEY MESSAGES • Strong fourth quarter to finish out a transformational year for AE • Q4 revenue of $338.3 million, above guidance range and up 17% sequentially on pro forma basis (1) • Q4 non-GAAP(2) earnings per share of $0.87, well above high end of guidance range • Full year 2019 revenue was a rec
Slide 4: Semiconductor Equipment
SEMICONDUCTOR EQUIPMENT • Strong sequential and year over year revenue growth • Revenue of $125 million, grew 30% sequentially and 16% year over year, driven by 41% sequential growth in semiconductor product revenue • Strengthening foundry/logic, increase in memory demand and an end to the inventory
Slide 5: Industrial & Medical
INDUSTRIAL & MEDICAL • Strong conversion of prior designs into revenue offsetting macro weakness • Revenue of $97 million, declined 0.7% sequentially on a pro forma basis(1) • Macro conditions remain challenging, particularly in solar, industrial production and automotive • New design wins across bo
Slide 6: Data Center Computing
DATA CENTER COMPUTING • Revenue growth in Q4 was stronger than expected • Revenue of $78 million represented 70% sequential growth on a pro-forma basis(1) • Hyperscale exceeded expectation on ramp of multiple design wins and market share gain • Market recovers after weak first half of 2019 • Gaining
Slide 7: Telecom & Networking
TELECOM & NETWORKING • Q4 revenue declined as anticipated • Revenue of $39 million was down 20% sequentially on a pro-forma basis(1) • Market conditions remain sluggish, with slowdown in both telecom infrastructure and networking equipment • Telecom providers delaying investment in next-generation 5
Slide 8: Q4 Revenue by Markets
Q4 REVENUE BY MARKETS ACTUAL RESULTS PRO FORMA GROWTH RATES GROWTH RATES(1) (figures in $thousands) Q4 2019 Q3 2019 Q4 2018 Q/Q Y/Y Q/Q Y/Y Semiconductor Equipment $125,108 $96,426 $107,393 30% 16% 27.6% 13.7% Industrial & Medical $96,736 $55,187 $46,768 75% 107% -0.7% 12.7% Data Center Computing $7
Slide 9: Q4 Revenue by Markets – Organic
Q4 REVENUE BY MARKETS – ORGANIC(1) (figures in $thousands) Q4 2019 Q3 2019 Q4 2018 Q/Q Y/Y Semiconductor Equipment $122,717 $95,479 $107,391 28.5% 14.3% Industrial & Medical $36,158 $38,740 $46,770 -6.7% -22.7% Total Revenue $158,875 $134,219 $154,161 18.4% 3.1% (1) Revenue comparisons on an organic
Slide 10: Revenue by Markets – 2019 vs. 2018
REVENUE BY MARKETS – 2019 vs. 2018 (figures in $thousands) 2019 2018 Y/Y Semiconductor Equipment $403,018 $533,770 -24.5% Industrial & Medical $245,992 $185,122 32.9% Data Center Computing $91,438 $0 Telecom & Networking $48,500 $0 Total Revenue $788,948 $718,892 9.7% Copyright © 2020 Advanced Energ
Slide 11: Q4 2019 Income Statement
Q4 2019 INCOME STATEMENT (figures in $m illions, except percentage & EPS) Q4 2019 Q3 2019 Q4 2018 Q/Q Y/Y Revenue $338.3 $175.1 $154.2 93.2% 119.4% GAAP gross margin 33.2% 42.0% 48.8% GAAP operating expenses $90.1 $64.1 $55.6 40.5% 62.0% GAAP operating margin from 6.6% 5.4% 12.7% continuing ops GAAP
Slide 12: Q4 2019 Balance Sheet & Cash Flow
Q4 2019 BALANCE SHEET & CASH FLOW (figures in $m illions) Q4 2019 Q4 2018 • Cash and securities rose to $349.1 million Cash & $349.1 $351.8 • Operating cash flow from continuing operations was Investments $19.0 million Accounts • Excluding deal-related payments and inherited $246.6 $100.4 Receivable
Slide 13: Q1 2020 Guidance
Q1 2020 GUIDANCE Q1 2020 Revenue 310M +/- 30M GAAP EPS from continuing operations $0.36 +/- $0.30 Non-GAAP* EPS $0.70 +/- $0.30 *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 Copyright
Slide 14: 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 restruc
Slide 15: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Reconciliation of Non-GAAP measure - income excluding certain items Three Months Ended Year Ended Reconciliation of Non-GAAP measure - December 31, September 30, December 31, operating expenses and operating income, excluding certain items Three Months Ended Year Ended 2019 2
Slide 16: Reconciliation of Q1 2020 Guidance
RECONCILIATION OF Q1 2020 GUIDANCE Low End High End Revenue $280M - $340M Reconciliation of non-GAAP** earnings per share GAAP earnings per share $0.06 - $0.66 Stock-based compensation $0.09 - $0.09 Amortization of intangible assets $0.14 - $0.14 Amortization of inventory step-up $0.13 - $0.13 Restr
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