Advanced Energy Industries benefited from strong PV inverter sales in the fourth quarter of 2011, generating record revenue of US$58.1 million. AE noted that its utility-scale PV Inverter platform, Solaron had been employed on some of the largest projects in North America in the period. PV inverter sales increased 12.3% compared to the previous quarter, when sales reached US$51.7 million, a prior tied sales record with the fourth quarter of 2010. Overall, AE generated fourth quarter revenue of US$112.5 million and a loss of US$2.6 million.
“During the fourth quarter we made great strides executing on our strategic plan by consolidating facilities, redesigning incentive plans and repurchasing stock and we are well on our way to achieving our initial goals and exceeding our cost savings targets,” commented Garry Rogerson, chief executive officer. “While market conditions remain uncertain in the near-term, our focus is centered on accomplishing the objectives we laid out at our analyst day to realign our cost structure, accelerate revenue growth and effectively utilize our cash.
AE management noted that it had started the transfer of manufacturing of some of its solar inverter subcomponents to its Shenzhen, China, factory in the fourth quarter, which were designed to generate savings of approximately US$12 million annually.
The second phase was said to be implemented over the next nine to 15 months as the company further reduces its cost structure, closes facilities and relocates other functions to different regions worldwide.
The company guided overall revenue to be down in the first quarter of 2012. Total sales are expected to be in the range of US$95 million – US$105 million. AE had posted first quarter 2011 sales of US$137.7 million.