Advanced Energy Slapped On Warning (AEIS)

Advanced Energy Industries Inc. (NASDAQ: AEIS) is seeing shares trade sharply lower in after-hours trading after it lowered guidance.  The company now sees revenues of approximately $84 million.  Its previous guidance of $86 million to $90 million.  Advanced Energy also sees GAAP EPS in a range of $0.07 to $0.08, lower than a prior $0.12 to $0.14 range.

• The blame: continued weakness in the semiconductor market and order delays out of OEM’s.   

The company said it will organize and implement cost reduction plans.  This is after its COO resigned earlier in January less than two-weeks after the company announced a $75 million share buyback plan.

This stock is only a $500 million market cap company so many tech stocks better hope that this doesn’t bleed over into the other core tech markets.  The company makes power and control technologies for plasma thin-film manufacturing processes such as semiconductors, flat panel displays, data storage products, solar cells, and architectural glass.  It also develops grid connect inverters for the solar energy market.  After the correction in many alternative energy names since January 1, traders better hope that this is far from a key supplier to that market.

Shares closed down less than 1% at $11.03 in normal trading, but shares are down 9.3% to $10.00 in after-hours trading.  If these post-close lows hold this will mark a 52-week low as the range was $10.23 to $25.97.  That’s about 60% off its highs and far worse if you consider a $60+ handle for part of 2000 back in the tech bubble days.

Jon C. Ogg
January 22, 2008