Advanced Energy(AEIS) - 2024 Q2 - Quarterly Report

Revenue Performance - Total revenue for Q2 2024 was $364,947 thousand, a decrease of 12.2$415,508 thousand in Q2 2023[141] - Total revenue for the first half of 2024 was $692,422 thousand, a decrease of 17.6$840,548 thousand in the first half of 2023[144] - Semiconductor Equipment market revenue increased to $188,321 thousand, representing 51.6$173,177 thousand (41.7%) in the same quarter last year[143] - Industrial and Medical market revenue decreased significantly by 38.0% to $79,104 thousand from$127,603 thousand in Q2 2023[143] - Data Center Computing market revenue grew by 23.5% to $72,964 thousand compared to$59,076 thousand in Q2 2023[143] Operating Income and Expenses - Operating income from continuing operations for Q2 2024 was $12,968 thousand, down from$29,825 thousand in Q2 2023[141] - Total operating expenses for the three months ended June 30, 2024, were $114,773, representing 31.4$117,255 or 28.2% of revenue in the same period of 2023[153] - Research and development expenses for the three months ended June 30, 2024, were $52,335, an increase of$922 or 1.8% compared to $51,413 in the same period of 2023[154] - Selling, general, and administrative expenses for the three months ended June 30, 2024, were$55,013, a decrease of $600 or 1.1$55,613 in the same period of 2023[155] - Restructuring, asset impairments, and other charges for the three months ended June 30, 2024, were $625, a decrease of$2,529 or 80.2% compared to $3,154 in the same period of 2023[157] Profitability Metrics - Gross profit margin for Q2 2024 was 35.0$127,741, a decrease of $19,339 or 13.1$147,080 in the same period of 2023[151] - Non-GAAP operating income for the six months ended June 30, 2024, was $55,307,000, down from$106,145,000 in the same period of 2023, representing a decrease of 47.9%[173] - Non-GAAP diluted earnings per share for the three months ended June 30, 2024, was $0.85, down from$1.11 in the same period of 2023[175] - Non-GAAP gross profit for the three months ended June 30, 2024, was $128,901,000, compared to$147,826,000 in the same period of 2023, reflecting a decrease of 12.8%[173] Interest and Taxation - Interest income for the three months ended June 30, 2024, increased to $12,119,000, a 181.8$4,301,000 in the same period of 2023[162] - Interest expense for the same period rose to $(6,956,000), reflecting a 143.4$(2,858,000) in the prior year[162] - The effective tax rate for the three months ended June 30, 2024, was 16.9%, compared to 14.9% for the same period in 2023[167] - Interest income for the six months ended June 30, 2024, reached $24,764,000, a 214.0$7,886,000 in the same period of 2023[162] Cash Flow and Financing - As of June 30, 2024, cash and cash equivalents totaled $986.1 million, with an additional$200.0 million available under the Revolving Facility[177] - Net cash from operating activities for the six months ended June 30, 2024 was $14.9 million, a decrease of$40.6 million compared to $55.5 million for the same period in the prior year[182] - The company completed a private offering of$575.0 million Convertible Notes, receiving net proceeds of approximately $561.1 million, intended for future growth and strategic acquisitions[178] - Total borrowings amounted to$920.0 million, with a fixed interest rate of 1.17% on $212.0 million due to interest rate swap agreements[179] - Quarterly cash dividends of$0.10 per share were paid, totaling $7.7 million for the six months ended June 30, 2024[181] Future Outlook and Strategic Initiatives - The company anticipates that long-term growth drivers will support its strategy despite current lower demand in certain markets[136] - The company anticipates additional charges of$1.0 million to $2.0 million related to the 2023 restructuring plan to be incurred through the second quarter of 2025[158] - The company anticipates a$10.6 million annual increase in interest expense after the expiration of interest rate swap contracts on September 10, 2024[195] - The company may seek additional debt or equity financing, although such financing may not be available on acceptable terms[177] - The company anticipates the 2022 Plan will be substantially completed by the end of 2024, aimed at improving operating efficiencies and reducing costs[160]