Advanced Energy reported that overall sales just sneaked-in above the lower point of downward revised guidance, but despite warning only a couple of weeks ago that PV project delays would impact quarterly figures, the PV inverter manufacturer posted sales that were slightly higher than first quarter levels. AE’s Renewables Business Unit sales were US$40.8 million in the second quarter, up from US$37.6 million in the previous quarter. Total revenue reached US$138.2 million, having previously revised guidance to between US$137-US$140 million.
AE noted that delayed PV projects seen in the second quarter were now going ahead and also expected increased demand before the year-end, especially in the US.
“Our renewables business in the second quarter was pressured by several industry dynamics, including declining panel prices, increasing competition, and changing incentive programs, which impacted our results more than anticipated. We were nonetheless pleased that our thin films business unit was in-line with expectations,” said Dr. Hans Betz, chief executive officer. “Looking at our expectations for the remainder of 2011, we believe the benefits of our diversification strategy become clear. As our thin film business softens with market cyclicality, our renewables business is poised to capture previously-deferred business as customers initiate projects in order to take advantage of tax credits by year-end. Longer-term, we continue to see demand for our utility-scale inverter products in North America and remain confident that Advanced Energy's strategy of selling based on levelized cost of energy (LCOE), superior uptime performance and best-in-class service offering will continue to differentiate us in the market.”
AE expects total sales to be in the range of US$130-US$145 million, suggesting a further increase in PV inverter sales as its Thin Film Unit sales are expected to soften.