U.S. inverter supplier Advanced Energy has seen sales of its inverters fall by 23% in the space of a year, according to its third-quarter (Q3) financial results released yesterday.
Overall inverter sales in Q3 reached $52 million, which was 23% below the $67.5 million generated in 2013s third quarter, and also down 19% on this years second quarter, when sales reached $64.5 million.
Total third quarter sales for Advanced Energy were $143.1 million in the third quarter, slightly up on Q3 2013s figure of $142.9 million but below the $146.3 million generated in the second quarter of this year.
The company's CEO and president Yuval Wasserman said that these results demonstrate the "advantages of our diversified model to drive earnings growth", adding that some markets have experienced cyclicality and industry-wide challenges.
Advanced Energy's shift towards the three-phase inverter market and away from utility-scale central inverters enables the company to "respond more quickly and flexibly to changing market dynamics by better leveraging our global resources," added Wasserman.
The results were better than projected, the CEO revealed, citing the focus on the growing demand for the three-phase string inverter as a necessary and pivotal course of action for the company, particularly in the wake of price pressures in the inverter sector generally.
Net income was $12.3 million, which equates to $0.30 per diluted share. Advanced Energy ended Q3 with cash reserves and marketable securities of $105.8 million. Although that figure was some $24.2 million below Q2s pot, it does include the $30.2 million acquisition of UltraVolt Inc. and $4.7 million debt repayment.
At the end of Q2, Advanced Energy had 3.5% of the inverter market revenue global share, according to IHS roughly similar to last year. The companys relative stability is predicated on its strategy of maintaining its presence in the U.S. and expanding into the Indian market.
Beyond the inverter sector, Advanced Energys precision power products accounted for $91.2 million of third quarter sales a performance that represented a 20.9% increase on Q3 2013.
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