Solar energy business for sale
Advanced Energy's solar inverter business is for sale, once the company explores other "strategic options" such as a shared venture or licensing arrangement.
This development didn't appear to come as a surprise to many in the industry.
In 2012, Advanced Energy obtained REFUsol, a big inverter provider - now this is the # 2 provider in the U.S. behind SMA and # 7 worldwide, relating to GTM analysis's future inverter report. But it doesn't change the inverter business's fundamental nature of price stress, thin margins and increased competitors.
AE features transported a lot more than 1 gigawatt of inverters globally in 2013 and contains preserved leadership into the U.S. non-residential market with a 2014 market share percentage in the low thirties (information from PV Leaderboard).
But GTM Research Solar Analyst Scott Moskowitz notes, "as a result of falling costs and lethargic growth in the commercial market, this has translated not just into lost margins but also into lost income."
MJ Shiao, GTM's Director of Solar analysis, adds: "AE's solar power inverter business has-been struggling to steadfastly keep up with tremendous prices stress when you look at the U.S. resulting from European competitors, module price stagnation and, recently, affordable Chinese suppliers. While it attempted to pick up margins by moving its manufacturing overseas, the move emerged just recently. The gross margin profile for solar inverters has been weak for commercial and utility inverters, particularly in comparison to AE's thin film company. Given continuing pricing force as Chinese suppliers like Chint and SunGrow ramp up their U.S. presence, growing margins is hard."
Shiao concludes, "The AE brand name continues to be powerful in the U.S., but AE's dependence on the U.S. retail and energy areas cloud its easy development prospects once the ITC drops. Although the REFUsol purchase offered AE an international brand, development in international markets is poor."
The Fort Collins, Colo.-headquartered company has received a number of present personnel techniques. Yuval Wasserman was marketed to CEO after Garry Rogerson resigned that role in October. In November, it had been launched that Danny Herron, their EVP and CFO, would step down, becoming replaced by William Trupkiewicz, who had previously been providing as main bookkeeping officer.
The organization features a diverse distinct power and control services and products for thin film production and hires about 1, 700 global, with about 500 in Fort Collins. Advanced Energy's stock happens to be at $22.89, up 0.84 %.