Q1 2024 Advanced Energy Industries Inc Earnings Call Transcript
Key Points
- Advanced Energy Industries Inc (AEIS) reported stronger than expected semiconductor revenue in Q1.
- Despite challenges, the company achieved its gross margin target and delivered earnings within the guidance range.
- Advanced Energy Industries Inc (AEIS) is seeing a strong rebound in data center computing demand, expected to drive sequential revenue growth.
- The company has secured major design wins for its next-generation plasma power products, which are expected to drive market share gains.
- Advanced Energy Industries Inc (AEIS) is executing a manufacturing consolidation plan expected to benefit gross margin in the second half of 2024.
- Revenue in non-semiconductor markets declined 19% quarter over quarter due to a challenging demand environment.
- Inventory corrections at OEMs and distributors led to a revenue shortfall, particularly in the industrial and medical markets.
- Telecom and networking revenue decreased significantly, with challenging market conditions expected to persist throughout 2024.
- Data center computing revenue was below expectations due to the push-out of a single hyperscale program.
- First quarter gross margin decreased both sequentially and year-over-year, reflecting the impact of lower volumes and challenging conditions.
Welcome to Advanced Energy first-quarter 2024 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. They 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, May 1, 2024, and the company assumes no obligation to update them. Any targets beyond the current quarter presented today should not be interpreted as guidance.
On today's call, our financial results are presented on a non-GAAP financial basis unless otherwise specified. Excluded from non-GAAP results are stock compensation, amortization, acquisition-related costs,
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