Advanced Energy Industries, Inc. (NASDAQ:AEIS) Q3 2022 Earnings Conference Call November 1, 2022 4:30 PM ET

Company Participants

Edwin Mok - Vice President of Strategic Marketing & Investor Relations

Paul Oldham - Executive Vice President & Chief Financial Officer

Stephen Kelley - President & Chief Executive Officer

Conference Call Participants

Quinn Bolton - Needham & Company

Scott Graham - Loop Capital Markets

Krish Sankar - Cowen

Mehdi Hosseini - SIG

Hans Chung - D.A. Davidson

Steve Barger - KeyBanc Capital Markets

Mark Miller - Benchmark

Operator

Greetings. Welcome to the Advanced Energy Third Quarter 2022 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Edwin Mok, Vice President of Strategic Marketing and Investor Relations. You may begin.

Edwin Mok

Thank you, operator. Good afternoon, everyone. Welcome to Advanced Energy third quarter 2022 earnings conference call. With me today are Steve Kelley, our President and CEO; and Paul Oldham, our Executive Vice President and CFO. Before I begin, I’d like to mention that we will be participating at several investor conferences in the coming months. If you have not seen our earnings press release and presentation, you can find them on our website at ir.advancedenergy.com.

Let me remind you that today’s call contains forward-looking statements that are subject to risks and uncertainties that are 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, November 1, 2022, and the company assumes no obligation to update them. Medium-term targets and long-term aspirational goals 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 our non-GAAP results are stock compensation, amortization, acquisition-related costs, restructuring expenses, unrealized foreign exchange gains and gains from a onetime sales of a nonstrategic technology. A detailed reconciliation between GAAP and non-GAAP measures can be found in today’s press release.

With that, let me pass the call to our President and Chief Executive Officer, Steve Kelley.

Stephen Kelley

Thanks, Edwin. Good afternoon, everyone, and thanks for joining the call. Our third quarter was one for the record books, with over $500 million of revenue and more than $2 of earnings per share. In addition, we delivered strong cash flow. This outperformance was largely a function of improved component supply, our part qualification and redesigned efforts and good manufacturing execution. Demand for our products remained strong. 2/3 of our nearly $1.1 billion backlog is shippable in the next 2 quarters. That gives us opportunity for upside, should our critical component suppliers improve upon their current delivery commitments.