Advanced Energy posts 27.9% Q4 inverter revenue decrease


American power conversion technology company Advanced Energy saw its inverter division post a 27.9% year-on-year loss in Q4 2014 as the result of a series of macroeconomic pressures impacted its business.

Inverter revenues for the fourth and final quarter of 2014 came in at $46.8 million, which also represented a 9.8% decrease on sales in Q3, when revenues reached $52 million for the quarter.

The poor showing in Q4 2014 has been attributed to "economic weakness in Europe, pricing pressure, changes in currency exchange rate and increased competition", according to an Advanced Energy press statement.

Overall revenue for the company hit $153 million for the quarter, with the precision power sector taking up most of the inverter slack, enjoying a year-on-year final quarter revenue increase of 16.1%.

"We ended 2014 with a strong quarter," said Advanced Energy’s CEO and president Yuval Wasserman. "Our investment in new semiconductor products targeting key technology inflection points is enabling accelerated growth in existing and new applications, and drove record revenues for the quarter.”

The CEO added that the company is in the process of evaluation "strategic alternatives" for its solar inverter business in response to the near-term challenges facing the industry.

Such challenges have swept through the inverter sector, impacting the bottom lines of most leading suppliers, not least SMA, which recently announced it is to cut its staff by up to one-third in the face of increased price pressure and international competition.

Advanced Energy’s guidance for 2015 anticipates first-quarter sales of between $137 million and $147 million. In December last year, the company announced that it is considering transitioning away from the inverter business following a tough few months financially.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.