AEIS - Advanced Energy Industries Inc. (AEIS) Q4 2023 Earnings Call Transcript

2024-02-06 21:46:06 ET

Advanced Energy Industries, Inc. (AEIS)

Q4 2023 Earnings Conference Call

February 06, 2024, 04:30 PM ET

Company Participants

Edwin Mok - VP, Strategic Marketing and IR

Steve Kelley - President and CEO

Paul Oldham - CFO

Conference Call Participants

Joseph Quatrochi - Wells Fargo

Krish Sankar - TD Cowen

Steve Barger - KeyBanc Capital Markets

Mehdi Hosseini - SIG

Scott Graham - Seaport Research

James Ricchiuti - Needham & Company

Duksang Jang - Bank of America

Mark Miller - Benchmark

Presentation

Operator

Greetings. Welcome to Advanced Energy's Fourth Quarter 2023 Earnings Call. [Operator Instructions].Please note, this conference is being recorded.

At this time, I'll turn the conference over to Edwin Mok, Vice President of Strategic Marketing and Investor Relations. Mr. Mark, you may now begin.

Edwin Mok

Thank you, operator. Good afternoon, everyone. Welcome to Advanced Energy Fourth Quarter 2023 Earnings Conference Call. With me today are Steve Kelley, our President and CEO; and Paul Oldham, our Executive Vice President and CFO. You can find our earnings press release and presentation on our website at ir.advancedenergy.com. Let me remind you that today's call contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially and are not guarantees of future performance. Information concerning these risks can be found in our SEC filings. All forward-looking statements are based on management's estimates as of today, February 06, 2024, and the company assumes no obligation to update them.

Any targets beyond the current quarter presented today should not be interpreted as items. On today's call, our financial results are presented on a non-GAAP financial basis unless otherwise specified. Excluded from our non-GAAP results are stock compensation, amortization, acquisition-related costs, facility expansion and related costs, restructuring and impairment charges, unrealized foreign exchange gains or losses and onetime tax benefit. Detailed reconciliation between GAAP and non-GAAP measures can be found in today's press release.

With that, let me pass the call to our President and CEO, Steve Kelley.

Steve Kelley

Thanks, Edwin. And to those on the line, thanks for joining the call. Fourth quarter revenue of $405 million met our guidance, while earnings per share of $1.24 surpassed our guidance. We delivered record cash flow of $85 million in the fourth quarter. Over the full year, we delivered record cash flow of $213 million by maintaining good profitability and reducing inventory.

For the full year, we benefited from diversified end market exposure. Even though our semiconductor revenue was down about 20% in 2023. Revenue in our other markets, stayed flat. In total, our revenue declined roughly 10% in 2023, a significant improvement over our performance in previous semiconductor downturn....

For further details see: