Advanced Energy Industries, Inc. (NASDAQ:AEIS) Q3 2023 Earnings Conference Call October 31, 2023 4:30 PM ET

Company Participants

Edwin Mok - VP, Strategic Marketing and IR

Steve Kelley - President and CEO

Paul Oldham - CFO

Conference Call Participants

Jim Ricchiuti - Needham & Company

Krish Sankar - TD Cowen

Steve Barger - KeyBanc Capital Markets

Mehdi Hosseini - SIG

Mark Miller - Benchmark

Pavel Molchanov - Raymond James

Operator

Greetings. Welcome to the Advanced Energy's Third Quarter 2023 Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note, this conference is being recorded.

At this time, I'll turn the conference over to Edwin Mok, Marketing and Investor Relations. Mr. Mok, you may begin.

Edwin Mok

Thank you, operator. Good afternoon everyone. Welcome to Advanced Energy third quarter 2023 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 in several investor conferences. 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 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, October 31st, 2023, 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. Excludes our non-GAAP results are stock compensation, amortization, acquisition-related costs, facility expansion and related costs, restructuring charges and unrealized foreign exchange gain or losses. A 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 CEO, Steve Kelley.

Steve Kelley

Thanks Edwin and thanks for joining the call today. We delivered solid results in the third quarter with earnings at the high end of our guidance range on slightly lower revenue.

We delivered record operating cash flow of $73 million, benefiting from improved operating margin, effective inventory control measures, and execution of our cost control initiatives.