For more information, contact:

Mike El-Hillow Advanced Energy Industries, Inc. 970.407.6570 mike.el-hillow@aei.com

Cathy Kawakami Advanced Energy Industries, Inc. 970.407.6732 cathy.kawakami@aei.com

AE Reports Second Quarter 2003 Results

FORT COLLINS, Colo., July 24, 2003—Advanced Energy Industries, Inc. (Nasdaq: AEIS) today reported financial results for the second quarter ended June 30, 2003. Advanced Energy is a leading global provider of critical solutions used in the production of semiconductors, flat panel displays, data storage products and other advanced thin film applications.

 

Revenue for the second quarter of 2003 was $62.9 million, a decrease of 7 percent compared to second quarter 2002 revenue of $67.9 million. Revenue for the second quarter of 2003 increased 12 percent compared to first quarter 2003 revenue of $56.2 million. Net loss for the second quarter of 2003 was $5.8 million, or $0.18 per share compared to the second quarter 2002 net loss of $5.1 million, or $0.16 per share. This compares to the first quarter 2003 net loss of $8.6 million, or $0.27 per share.

Revenue for the six months ended June 30, 2003 was $119.1 million versus $110.8 million for the first six months of 2002. Net loss for the 2003 six-month period was $14.4 million, or $0.45 per share, compared with a net loss of $13.9 million, or $0.43 per share, for the 2002 six-month period.

Doug Schatz, chairman and chief executive officer, said, "Our second quarter results were in line with our expectations. Revenue came in slightly above our prior guidance range as we experienced some pick-up in demand in our power and mass flow control product groups. We believe our demand momentum will continue to increase moderately in the near term as we continue to penetrate new and existing markets.

"Advanced Energy is well-positioned to extend our market and technology positions by leveraging our product portfolio in power, flow, plasma and ion sources, and thermal products to solve critical manufacturing issues," said Mr. Schatz. "Our commitment to investment in research and development focused on our four key technology areas strengthens our product offerings and opportunities, providing greater competitive advantage to our customers."

Based on information currently available, the Company expects third quarter revenue to increase 3 to 8 percent, in the $65 million to $68 million range, and expects a loss per share range of $0.11 to $0.13.

Second Quarter 2003 Conference Call

Management will host a conference call today, Thursday, July 24, 2003 at 5:00 pm Eastern time to discuss the financial results. You may access this conference call by dialing 888-713-4717. International callers may access the call by dialing 706-679-7720. For a replay of this teleconference, please call 706-645-9291, code 8359784. The replay will be available through Thursday, July 31, 2003. There will also be a webcast available at www.advanced-energy.com.

About Advanced Energy

Advanced Energy is a global leader in the development and support of technologies critical to high-technology manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, compact discs, digital video discs, architectural glass, and other advanced product applications.

Leveraging a diverse product portfolio and technology leadership, AE creates solutions that maximize process impact, improve productivity and lower cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, plasma and ion beam sources, and integrated process monitoring and control for original equipment manufacturers (OEMs) and end-users around the world.

AE operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors. Founded in 1981, AE is a publicly held company traded on the Nasdaq National Market under the symbol AEIS. For more information, please visit our corporate website: www.advanced-energy.com.

Safe Harbor Statement

This press release contains certain forward-looking statements subject to known and unknown risks and uncertainties that cView Report