Advanced Energy 2Q profit slips

FORT COLLINS – Advanced Energy Industries Inc. reported net income of $8.9 million for the second quarter vs. $13.6 million in the same period last year.

The drop yielded earnings of 22 cents per share compared to 31 cents per share in the like period last year, according to the company.

The company’s profit, however, rose significantly from the $1.1 million in net income it reported for the first quarter.

SPONSORED CONTENT

Commercial Solar is a big investment, but not an overwhelming one

Solar offers a significant economic benefit for commercial property owners while also positively impacting the environment and offering a path to compliance for new municipal requirements like Energize Denver. A local, experienced solar installer will help you navigate the complexities of commercial solar to achieve financial success for your project.

“These results reflect our unwavering focus on lowering our cost structure and keeping those costs under control regardless of market fluctuations,” CEO Garry Rogerson said in a conference call Tuesday morning.

The company posted second-quarter sales of $115.7 million vs. $138.2 million in the last second quarter.

Advanced Energy ended the quarter with $149 million in cash and marketable securities, having generated $33.5 million in cash during the quarter.

“With a record backlog and a strong pipeline of opportunities, our solar energy business continues to gain momentum in the North American market, which should help to offset some of the cyclicality in our thin-films markets,” Rogerson said.

Sales in the company’s solar energy unit increased 24 percent to $50.8 million due to utility-scale deployments in North America. Heading into the third quarter, the company said it had a record backlog in its solar business.

Advanced Energy also said it established a manufacturing facility in Canada and expanded its partnership with Shanghai Guangdian Electric Group to make low-cost solar inverters.

Thin-films sales declined 33 percent to $64.8 million in the second quarter, reflecting lower levels of capital investment by companies in those markets.

The earnings report comes as the company continues its restructuring plan, the remainder of which will be implemented during the next three to nine months. The company expects savings to come from consolidation of some facilities and the centralization of others.

The company expects the plan to result in savings of more than $30 million annually once completed.

Advanced Energy also said it expects third-quarter sales between $116 million and $124 million.

Company shares rose 3.7 percent to $12.29.