The following is a summary of the Advanced Energy Industries, Inc. (AEIS) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Advanced Energy Industries reported weaker than anticipated Q1 revenue, with significant decline from their semiconductor business and other markets, and slight inventory buildup at distributors and OEMs.

• Despite these challenges, the company achieved their gross margin targets and delivered earnings within their forecasted range.

• First quarter gross margin was 35.1%, marking a 19% decline and dropping 60 basis points from the last quarter.

• Non-GAAP earnings per share for Q1 were $0.58, consistent with the company's guidance.

• Revenue in the semiconductor market reached $180 million, a decrease of 6% sequentially and 7% year-over-year.

• The company concluded Q1 with total cash and investments at $1.02 billion and net cash of $106 million.

Business Progress:

• Advanced Energy Industries is actively investing in R&D and launching new products and technologies aimed at their customers.

• They secured their first major design wins for eVoS and eVerest next-generation plasma power products and have already dispatched over 50 of these systems.

• The company introduced the Evergreen high-power platform intended for aerospace, defence, fast-charging stations, industrial lasers and extensive capital equipment.

• They anticipate a rise in Q2 revenue, driven largely by robustness in the data center computing market, with growth expected to extend into the second half of 2024.

• A consolidation plan in manufacturing is being executed, expected to reduce costs, and enhance gross margins beginning in the second half of 2024.

• The company predicts a mild recovery in DRAM manufacturing and leading-edge logic starting in the second half, with acceleration in 2025 when net incomes are back online.

More details: Advanced Energy Industries IR

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