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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