Advanced Energy Industries, Inc. today announced financial results for the third quarter ended September 30, 2014. The company reported third quarter sales of $143.1 million compared with $146.3 million in the second quarter of 2014 and $142.9 million in the third quarter of 2013. Net income was $12.3 million or $0.30 per diluted share. On a non-GAAP basis, net income was $16.9 million or $0.42 per diluted share. A reconciliation of non-GAAP net income and earnings per share is provided in the tables below. The company ended the quarter with $105.8 million in cash and marketable securities, a decrease of $24.4 million over the second quarter of 2014, which included the acquisition of UltraVolt, Inc. in the amount of $30.2 million and the repayment of a credit line in the amount of $4.7 million.
"This quarter's performance demonstrates the advantages of our diversified model to drive earnings growth even as some markets experience cyclicality and industry-wide challenges," said Yuval Wasserman, President and CEO of Advanced Energy. "Under our new product line structure, we are now able to respond more quickly and flexibly to changing market dynamics by better leveraging our global resources. While the environment in the solar industry continues to impact our utility scale installations, our focus on the growing demand for 3-phase string inverters and our performance in semiconductor and other precision power applications resulted in better than projected results for the quarter."
Precision Power Products
Precision Power products sales were $91.2 million in the third quarter of 2014, an 11.4% increase from $81.8 million in the second quarter of 2014 and a 20.9% increase from $75.4 million in the third quarter of 2013. This quarter, the strength of our sales to semiconductor customers and some of our smaller applications balanced out the sequential decrease in industrial products.
Inverter sales were $52.0 million in the third quarter of 2014, down 19.4% from $64.5 million in the second quarter of 2014, and down 23.0% from $67.5 million in the third quarter of 2013. Our mix continues to shift toward 3-phase string inverters from utility scale central inverters.
Net income for the third quarter of 2014 was $12.3 million or $0.30 per diluted share, compared with net income of $10.6 million or $0.26 per diluted share in the second quarter of 2014, and $0.7 million or $0.02 per diluted share in the third quarter last year. On a non-GAAP basis, adjusted net income this quarter increased to $16.9 million or $0.42 per diluted share from $15.5 million or $0.38 per diluted share in the second quarter of 2014, and decreased from $21.7 million or $0.53 per diluted share in the same period last year.
Fourth Quarter 2014 Guidance
Based on our current view, our guidance is within the following ranges:
- Sales of $140 million to $150 million
- GAAP earnings per share of $0.29 to $0.37, excluding restructuring charges
- Non-GAAP earnings per share of $0.37 to $0.45