Courtesy of Benzinga
Advanced Energy Industries, Inc. (Nasdaq: AEIS) today updated its outlook for the quarter ended June 30, 2011. Based on preliminary financial data, the company now expects to report revenue between $137 million and $140 million for the second quarter of 2011, below the range of $148 million to $160 million it projected on May 2, 2011, and earnings at the low end of, or slightly lower than the range it projected on May 2, 2011.
“The performance of our renewables business drove our lower than expected second quarter revenue, while our thin film business performed in-line with our expectations. Our results were primarily impacted by changing solar market conditions driven by panel price declines, short lead-times for components, and permitting and financing delays. These trends are causing some customers to push-out purchases until panel prices stabilize, leading to the postponement of construction of their projects. Additionally, changing incentive programs in certain regions, coupled with increasing competition, affected the quarter and continue to be ongoing industry dynamics. While we are disappointed in our renewables results this quarter, our recently-announced large project wins reinforce our confidence in our strategy of selling based on LCOE (levelized cost of energy), which we believe will continue to differentiate us from our competitors,” said Dr. Hans Betz, chief executive officer.
