Advanced Energy to Explore Strategic Alternatives for Solar Inverter Business
December 22 2014 - 3:03PM
Advanced Energy Industries, Inc. (Nasdaq:AEIS), a leader in
precision power conversion solutions, announced today that it has
started to explore strategic alternatives for its Solar Inverter
business. The company is considering various options including a
sale, joint venture, partnership, licensing or other alternatives
including additional product line optimization and rationalization,
in order to maximize shareholder value.
"As part of our annual strategic planning process, we reviewed
our entire business to determine the best portfolio mix to achieve
our strategic objectives and build shareholder value. We concluded
that the Solar Inverter business as currently configured required a
review of our strategic alternatives to capitalize on its strong
product portfolio and customer relationships," said Yuval
Wasserman, President and Chief Executive Officer.
The company plans to continue offering its inverter products and
services, and supporting its customers during this process. There
can be no assurance that the company will enter into a transaction
in the future. The company does not plan to disclose or comment on
developments until it deems further disclosure to be
appropriate.
As a result of the company's strategic review and resulting
retirement of certain central inverter legacy products, the company
expects to record a non-cash inventory charge of between $10 and
$14 million in the fourth quarter. This non-cash inventory charge
will reduce net income and earnings per share on a GAAP-basis for
the fourth quarter and full year 2014, but the company expects to
exclude this charge from its calculation of non-GAAP net income and
non-GAAP earnings per share for such periods, as a non-cash,
non-recurring charge.
This press release relates to the company's strategic review and
resulting solar inverter product line optimization
process. The company is not updating guidance and will discuss
its fourth quarter and full year results at its regularly scheduled
earnings call.
About Advanced Energy
Advanced Energy (Nasdaq:AEIS) is a global leader in
innovative power and control technologies for high-growth,
precision power conversion solutions. Advanced Energy is
headquartered in Fort Collins, Colorado, with dedicated
support and service locations around the world. For more
information, go to www.advanced-energy.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Exchange Act of 1934,
including, but not limited to, statements regarding the exploration
of strategic alternatives for our Solar Inverter business. These
forward-looking statements are based on Advanced Energy's current
assumptions, expectations and beliefs and involve substantial risks
and uncertainties that may cause results, performance or
achievement to materially differ from those expressed or implied by
these forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to: the
company's ability to identify and execute upon a strategic
alternative, current and prospective customer reaction pending a
decision on a strategic alternative or once a strategic alternative
is selected (if at all), including potential decreases in customer
orders and sales of our solar inverters, potential disruption to
the company's operations and management that could occur leading up
to and after a strategic alternative is chosen, and employee
retention. Additionally, as we complete the year-end audit
process, we may discover facts that would require us to record a
non-cash inventory charge that is materially different from our
expectations stated in this press release, or we might not be
permitted to exclude such inventory charge from our calculation of
non-GAAP net income and non-GAAP earnings per share. Other risks
are described in Advanced Energy's Form 10-K, Forms 10-Q and other
reports and statements filed with the Securities and Exchange
Commission. These reports and statements are available on the SEC's
website at www.sec.gov. Copies may also be obtained from Advanced
Energy's website at www.advancedenergy.com or by contacting
Advanced Energy's investor relations at 970-407-6555.
Forward-looking statements are made and based on information
available to the company on the date of this press release. The
company assumes no obligation to update the information in this
press release.
CONTACT: Danny Herron
Advanced Energy Industries, Inc.
970.407.6570
danny.herron@aei.com
Annie Leschin
Advanced Energy Industries, Inc.
970.407.6555
ir@aei.com
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From Apr 2024 to May 2024
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From May 2023 to May 2024