Advanced Energy Industries, Inc. · NASDAQ:AEIS

Advanced Energy Industries — Q3 2023 Earnings Presentation

14 slides from Advanced Energy Industries's earnings presentation, Oct 31, 2023

  1. Slide 1: Q3 2023 Earnings Presentation

    Q3 2023 Earnings Presentation OCTOBER 31, 2023 1

  2. 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

  3. Slide 3: Q3 2023 Summary

    Q3 2023 SUMMARY • Strong financial performance through business cycle ‒ Q3 revenue of $410 million within guidance range while non-GAAP(1) EPS of $1.28 at the high end of guidance ‒ Revenue down 1% Q/Q with some demand softening late in the quarter due to macroeconomic factors ‒ Actions to improve o

  4. Slide 4: Q3 2023 Revenue Detail by Market

    Q3 2023 REVENUE DETAIL BY MARKET ($ in millions) INDUSTRIAL & MEDICAL Down 10% Q/Q & Down 4% Y/Y SEMICONDUCTOR EQUIPMENT • Revenue down Q/Q on softening demand Q3 2023 $115M late in quarter on slower macro factors Up 7% Q/Q & Down 31% Y/Y Total Revenue • Launched five new I&M products • Revenue up Q

  5. Slide 5: Q3 2023 Financial Highlights

    Q3 2023 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) $410 million 36.1% $73 million Down 1% Q/Q Up 50 bps Q/Q Up 3X Q/Q NON-GAAP EPS(1) NON-GAAP OP MARGIN(1) CASH & INVESTMENTS(3) $1.28 12.4% $986 million Up 15% Q/Q Up 50 bps Q/Q Net Cash of $66 million (1) Detailed e

  6. Slide 6: Quarterly Revenue and Backlog Trends

    QUARTERLY REVENUE AND BACKLOG TRENDS $1,200 $1,000 $800 $ in millions $600 Backlog Revenue Target normalized backlog $400M to $500M $400 $200 $0 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 • Total backlog at the end of Q3 2023 was $514 million, down 53% Y/Y an

  7. Slide 7: Revenue by Market

    REVENUE BY MARKET ($ in m illions) Q3 2023 Q2 2023 Q3 2022 Q/Q Y/Y Semiconductor Equipment $185.0 $173.2 $266.6 6.8% -30.6% Industrial & Medical $115.2 $127.6 $119.6 -9.7% -3.6% Data Center Computing $68.3 $59.1 $87.5 15.6% -22.0% Telecom & Networking $41.5 $55.6 $42.5 -25.4% -2.5% Total Revenue $41

  8. Slide 8: Income Statement

    INCOME STATEMENT ($ in millions, except per share data) Q3 2023 Q2 2023 Q3 2022 Q/Q Y/Y Revenue $410.0 $415.5 $516.3 -1.3% -20.6% GAAP gross margin 35.9% 35.4% 37.0% GAAP operating expenses $117.3 $117.3 $113.6 0.0% 3.2% GAAP operating margin from continuing ops 7.3% 7.2% 15.0% GAAP EPS from continu

  9. Slide 9: Balance Sheet & Cash Flow

    BALANCE SHEET & CASH FLOW ($ in millions) Q3 2023 Q2 2023 Q3 2022 • Total Cash & Investments(1) up Q/Q to $986 million ‒ Net cash(2) down 28% Q/Q to $66 million Cash & Investments $986.1 $455.4 $411.2 ‒ Cash & Investments includes $482 million in net proceeds from our convertible notes offering comp

  10. Slide 10: Q4 2023 Guidance

    Q4 2023 GUIDANCE ($ in m illions, except per share data) Guidance Revenue $405 +/- $15 GAAP EPS from continuing operations $0.69 +/- $0.20 Non-GAAP(1) EPS $1.15 +/- $0.20 (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of th

  11. Slide 11: Quarterly Non-GAAP Financials

    QUARTERLY NON-GAAP FINANCIALS(1) Quarterly Trend All figures from AllContinuing figures from Operations Continuing Operations (figures in $ millions, except percentage and EPS) 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Backlog 405.7 534.7 771.4 927.8 1,0

  12. 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, and non-recurring items such as acquisition-related costs and restructuring expenses. The n

  13. Slide 13: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Copyright © 2023 Advanced Energy 13

  14. Slide 14: Q4 2023 Reconciliation of GAAP to Non-GAAP Guidance

    Q4 2023 RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE ($ in m illions, except per share data) Low End Midpoint High End Revenue $390 $405 $420 Reconciliation of Non-GAAP EPS GAAP EPS $ 0.49 $ 0.69 $ 0.89 Stock-based compensation 0.20 0.20 0.20 Amortization of intangible assets 0.19 0.19 0.19 Restructu

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