ADVANCED ENERGY INDUSTRIES INC
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
AEIS$197.01+6.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-30.
0001558370-24-010375
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001558370-24-013949
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 103 previous paragraphs and 102 current paragraphs.
54 unchanged; 36 reworded; 11 added; 13 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 53 previous and 57 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Recent Events
Current report
Airity Acquisition
Current report
2024 Restructuring Plan
Current report
Credit Agreement Amendment
Current report
On September 9, 2024, we used existing cash on hand to prepay the full $345.0 million outstanding principal balance under our Term Loan Facility. As of September 30, 2024, our only outstanding debt is the Convertible Notes due in 2028. On the same date, we entered into an additional amendment to the Credit Agreement to increase the capacity on the Revolving Facility from $200.0 million to $600.0 million. SeeNote 16. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements” for additional information.
Current report
Amortization expense remained constant. We acquired new intangible assets in the Airity acquisition, but this was offset by certain other intangible assets reaching the end of their estimated useful life.
Current report
In July 2024, we approved further manufacturing consolidation initiatives, including the previously announced closure of our Zhongshan, China facility. In connection with the 2024 Plan, we recorded a $28.5 million charge primarily associated with expected employment-related charges and facility exit costs. We expect to incur $1.0 million to $2.0 million in additional charges related to our announced actions and continue to evaluate our operations and cost structure, which could result in incremental restructuring charges in future periods.
Current report
On September 9, 2024, we used existing cash on hand to prepay the full $345.0 million outstanding principal balance under our Term Loan Facility. On the same date, we entered into an additional amendment to the Credit Agreement to increase the capacity on the Revolving Facility from $200.0 million to $600.0 million.
Current report
As of September 30, 2024, our only outstanding debt is the $575.0 million Convertible Notes, which mature on September 15, 2028 and carry a 2.5% interest rate.
Current report
SeeNote 16. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements” for additional information.
Current report
As of September 30, 2024, no amounts were outstanding under the Revolving Facility, and we had $600.0 million in available funding.
Removed paragraphs (13)
Previous report
Recent Acquisitions
Previous report
Our service group offers warranty and after-market repair services, providing our customers with preventive maintenance opportunities to support a lower cost of ownership and higher utilization for their capital equipment. We offer comprehensive repair service and customer support through our worldwide support organization. Support services include warranty and non-warranty repair services, calibration, upgrades, and refurbishments of our products.
Previous report
Amortization expense remained flat as the new intangible assets acquired in the Airity acquisition were the only additions, and they did not add significant expense during the three and six month periods ended June 20, 2024.
Previous report
In 2023, we approved a plan intended to optimize and further consolidate our manufacturing operations and functional support groups as well as a general reduction-in-force to align our expenses to revenue levels (the “2023 Plan”). We expect additional charges of $1.0 million to $2.0 million to be incurred in future periods through the second quarter of 2025. We anticipate the 2023 Plan will be substantially completed by the end of 2024, with the final activities concluding in the second quarter of 2025.
Previous report
2022 Plan
Previous report
This plan was approved to further improve our operating efficiencies and drive the realization of synergies from
Previous report
our business combinations by consolidating our operations, optimizing our factory footprint, including moving certain
Previous report
production into our higher volume factories, reducing redundancies, and lowering our cost structure. We anticipate the
Previous report
2022 Plan will be substantially completed by the end of 2024.
Previous report
of fixed assets, and other miscellaneous items. We had lower unrealized foreign exchange gains during the three months ended June 30, 2024 compared to the same period in the prior year. However, for the six months ended June 30, 2024, we had higher unrealized foreign exchange gains compared to the same period in the prior year.
Previous report
On September 12, 2023, we completed a private, unregistered offering of $575.0 million Convertible Notes and received net proceeds of approximately $561.1 million after the discount for the initial purchasers’ fees and other expenses. We intend to use the net proceeds to fund future growth, which may include strategic acquisitions, opportunistically repay existing outstanding indebtedness, repurchase our common stock, or general corporate purposes.
Previous report
The following table summarizes our borrowings (in thousands, except for interest rates).
Previous report
As of June 30, 2024, we had $200.0 million in available funding under the Revolving Facility. The Term Loan Facility requires quarterly repayments of $5.0 million plus accrued interest, with the remaining balance due in September 2026.
Reworded paragraphs (36)
Previous wording
SeeNote 11. Restructuring, Asset Impairments, and Other Chargesin Part I, Item 1 “Unaudited Consolidated Financial Statements” regarding our July 29, 2024 actions.
Current wording
In July 2024, we approved further manufacturing consolidation initiatives, including the previously announced closure of our Zhongshan, China facility. In connection with the 2024 Plan, we recorded a $28.5 million charge primarily associated with expected employment-related charges and facility exit costs. We expect to incur $1.0 million to $2.0 million in additional charges related to our announced actions and continue to evaluate our operations and cost structure, which could result in incremental restructuring charges in future periods. For additional information, seeNote 11. Restructuring, Asset Impairments, and Other Chargesin Part I, Item 1 “Unaudited Consolidated Financial Statements.”
Previous wording
Our precision power products and solutions are designed to enable new process technologies, improve productivity, lower the cost of ownership, and provide critical power capabilities for our customers. These products are designed to meet our customers’ demanding requirements in efficiency, flexibility, performance, and reliability. The majority of Advanced Energy’s products are capable of meeting various customer requirements. We also provide repair and maintenance services for our products.
Current wording
Our precision power products and solutions are designed to enable new process technologies, improve productivity, lower the cost of ownership, and provide critical power capabilities for our customers. These products are designed to meet our customers’ demanding requirements in efficiency, flexibility, performance, and reliability. We also provide repair and maintenance services for our products.
Previous wording
Our plasma power products offer solutions to enable innovation in complex semiconductor and thin film plasma processes such as dry etch and deposition. Our broad portfolio of high and low voltage power products are used in a wide range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data center computing, networking, and telecommunications. We also supply related sensing, controls, and instrumentation products primarily for advanced measurement and calibration of power and temperature for multiple industrial markets. Our network of global service support centers provides repair services, calibration, conversions, upgrades, refurbishments, and used equipment to companies using our products.
Current wording
Our plasma power products offer solutions to enable innovation in complex semiconductor and thin film plasma processes such as dry etch and deposition. Our broad portfolio of high and low voltage power products is used in a wide range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data center computing, networking, and telecommunications. We also supply related sensing, controls, and instrumentation products primarily for advanced measurement and calibration of power and temperature for multiple industrial markets.
Previous wording
The demand environment in each of our markets is impacted by macroeconomic conditions, various market trends, customer buying patterns, design wins, and other factors. Although we are currently experiencing a lower demand environment in certain markets, we continue to believe that the long-term market growth drivers support our long-term strategy, research and development efforts, and capital investments. However, in the short-term it is unclear how certain macroeconomic conditions, including the effect of higher interest rates impacting end customers’ capital investment, the timing of inventory digestion, and customer buying patterns related to timing of inventory, will affect customer demand and our revenue.
Current wording
The demand environment in each of our markets is impacted by macroeconomic conditions, various market trends, customer buying patterns, design wins, and other factors. Although we are currently experiencing a lower demand environment in certain markets, we continue to believe that the long-term market growth drivers support our long-term strategy, research and development efforts, and capital investments. However, in the short-term it is unclear how certain macroeconomic conditions, including the effect of higher interest rates impacting end customers’ capital investment, the timing of inventory digestion, and customer buying patterns, will affect customer demand and our revenue.
Previous wording
The Semiconductor Equipment market is slowly recovering from a cyclical downturn, which began in the fourth quarter of 2022. A number of external factors continued to limit the market in the first half of 2024, including unfavorable macroeconomic conditions, overcapacity in NAND flash wafer fabs, prolonged weakness in demand for consumer electronics, the buildup of inventory that resulted from falling manufacturing utilization, and U.S. export restrictions to China for certain semiconductor equipment.
Current wording
The Semiconductor Equipment market is slowly recovering from a cyclical downturn, which began in the fourth quarter of 2022. Since the market bottomed in 2023, demand had modestly recovered in the first nine months of 2024, but a number of external factors continued to limit the market, including unfavorable macroeconomic conditions, prolonged weak demand for consumer electronics, low fab utilization, and U.S. export restrictions to China.
Previous wording
We continue to believe the long-term growth drivers for this market will resume as more manufacturing capacity is needed to support increasing demand for semiconductor devices and related capital equipment.
Current wording
We continue to believe the long-term growth drivers will support cyclical growth for this market as more manufacturing capacity is needed to support increasing demand for semiconductor devices and related capital equipment.
Previous wording
Beginning in the second half of 2023, the impact of weaker macroeconomic conditions started to impact demand for our products in the Industrial and Medical Market. In addition, in the first half of 2024, elevated inventory levels of our products following the supply chain crisis and extended lead times resulted in high levels of inventory rebalancing by our customers. We expect these factors will continue to limit our revenue levels in the near term, but we believe the long-term growth drivers will enable growth to return to this market after end markets recover and our customer inventories return to normal levels.
Current wording
Beginning in the second half of 2023, the impact of weaker macroeconomic conditions started to impact demand for our products in the Industrial and Medical Market. In addition, in the first nine months of 2024, elevated inventory levels of our products following the supply chain crisis and extended lead times resulted in high levels of inventory rebalancing by our customers. We expect these factors will continue to limit our revenue levels in the near term, but we believe the long-term growth drivers will enable growth to return to this market after end markets recover and our customer inventories return to normal levels.
Previous wording
The Data Center Computing Market went through five quarters of weak demand starting in the first quarter of 2023, driven by reduced investments of our hyperscale customers, slowed demand for Enterprise systems and the timing impact of large customer orders on our revenues. Starting in the second quarter of 2024, demand rebounded from both our hyperscale and enterprise customers, driven by accelerated investments in artificial intelligence and improved demand in the traditional server market, which we expect to continue for several quarters.
Current wording
The Data Center Computing Market experienced weak demand starting in the first quarter of 2023 and continued until the first quarter of 2024, driven by reduced investments of our hyperscale customers, lower demand for Enterprise systems and the timing impact of large customer orders on our revenues. Starting in the second quarter of 2024, demand rebounded from both our hyperscale and enterprise customers, driven by accelerated investments in artificial intelligence and improved demand in the traditional server market, which we expect to continue for several quarters.
Previous wording
Starting in 2023, leading companies in both the telecom and networking markets reported weakening demand. However, an improved supply of critical components in 2023 drove higher customer orders, more than offset the weakening market condition, which continued in 2024. As lead times shorten and customers rebalance their elevated inventory levels of our products, demand for our products declined meaningfully in the first half of 2024, which we expect to continue throughout the year.
Current wording
Starting in 2023, leading companies in both the telecom and networking markets reported weakening demand. However, improved supply of critical components in 2023 drove higher customer orders and more than offset weakening market conditions, which continued in 2024. As end demand softens and customers rebalance their elevated inventory levels of our products, demand for our products declined meaningfully in the first nine months of 2024, which we expect to continue for several quarters.
Previous wording
The analysis presented below is organized to provide the information we believe will be helpful for understanding of our historical performance and relevant trends going forward and should be read in conjunction with our “Unaudited Consolidated Financial Statements” in Part I, Item 1 of this report, including the notes thereto. Also included in the following analysis are measures that are not prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). A reconciliation of the non-GAAP measures to U.S. GAAP is provided below.
Current wording
The analysis presented below is organized to provide the information we believe will be helpful for an understanding of our historical performance and relevant trends going forward and should be read in conjunction with our “Unaudited Consolidated Financial Statements” in Part I, Item 1 of this report, including the notes thereto. Also included in the following analysis are measures that are not prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). A reconciliation of the non-GAAP measures to U.S. GAAP is provided below.
Previous wording
Total revenues in the six month period decreased from the same periods in the prior year due primarily to inventory rebalancing, resulting in lower demand in our Industrial and Medical and Telecom and Networking markets. The Semiconductor Equipment market has not fully recovered from the cyclical downturn, and revenue in the Data Center Computing market was impacted by timing of several large programs in first quarter.
Current wording
Total revenues in the nine month period decreased from the same periods in the prior year due primarily to customer inventory rebalancing, resulting in lower demand in our Industrial and Medical and Telecom and Networking markets. The Semiconductor Equipment market modestly recovered from the cyclical trough in 2023, and revenue in the Data Center Computing market was impacted by weak demand in the first quarter followed by a rebound beginning in the second and third quarter driven by investments in artificial intelligence.
Previous wording
The increase in Semiconductor Equipment revenue for the three month period was primarily due to improved demand for our products compared to quarterly trough in the same period in the prior year. The revenue for the six month period remained constant due to an ongoing cyclical downturn in this market.
Current wording
The increase in Semiconductor Equipment revenue for the three month period was primarily due to improved demand for our products compared to the same period in the prior year. The revenue for the nine month period modestly increased from the cyclical trough in 2023.
Previous wording
The decrease in Industrial and Medical revenues for both the three and six month periods was primarily due to lower demand and customers working down their elevated inventories compared to a record year in 2023 and shortened lead times following the supply chain crisis.
Current wording
The decrease in Industrial and Medical revenues for both the three and nine month periods was primarily due to lower demand and customers working down their elevated inventories compared to a record year in 2023 and shortened lead times following the supply chain crisis.
Previous wording
The increase in Data Center Computing revenue for the three month period was due to investments at several large hyperscale customers mostly driven by artificial intelligence adoption, and, to a lesser degree, a recovery in demand for traditional enterprise servers. The decline during the six month period was due to lower revenue in the first quarter of 2024 from slow demand and minimal large hyperscale orders.
Current wording
The increase in Data Center Computing revenue for the three and nine month periods was due to increased hyperscale investments mostly driven by artificial intelligence adoption, and, to a lesser degree, a recovery in demand for traditional enterprise servers.
Previous wording
The decrease in Telecom and Networking revenues for both the three and six month periods was due to the prior year benefit of improved supply of critical components. This enabled fulfillment of outstanding orders in 2023, which was not expected to continue in 2024 and beyond. In addition, we experienced a slow demand environment and inventory rebalancing from our customers.
Current wording
The decrease in Telecom and Networking revenues for both the three and nine month periods was due to the prior year benefit of improved supply of critical components. This enabled fulfillment of outstanding orders in 2023, which did not continue in 2024. In addition, we experienced a slow demand environment and inventory rebalancing from our customers, which we expect to continue.
Previous wording
For both the three and six month periods, the decrease in gross profit was largely due to the decline in revenue and higher operating costs based on investments made in 2023. Gross margin declined in both periods due to the decline in volume, which drove manufacturing utilization lower. This was partially offset by more favorable product mix, savings realized from our 2023 restructuring program, and lower premiums paid for scarce parts.
Current wording
For both the three and nine month periods, the decrease in gross profit was largely due to the decline in revenue and higher operating costs based on investments made in 2023. Gross margin declined in both periods due to the decline in volume, which drove manufacturing utilization lower. This was partially offset by more favorable product mix, savings realized from our restructuring programs, and lower premiums paid for scarce parts.
Previous wording
During the three month period we experienced a slight increase in R&D related to higher program and materials cost as well as higher stock-based compensation expense compared to the same period in the prior year. For the six month period we had decline in program and materials cost as well as a decrease in compensation costs. The decline in compensation costs was due to lower variable compensation, partially offset by higher stock-based compensation expense.
Current wording
During the three and nine month periods we experienced an increase in R&D related to higher stock-based compensation expense as well as higher program and materials cost compared to the same periods in the prior year. This was partially offset by lower variable compensation cost.
Previous wording
The decrease in restructuring, asset impairments, and other charges is primarily driven by the timing of our restructuring plan decisions. We have two restructuring plans in process, including the following:
Current wording
The increase in restructuring, asset impairments, and other charges is primarily driven by the timing of our restructuring plan decisions.
Previous wording
For additional information, seeNote 11. Restructuring, Asset Impairments, and Other Chargesin Part I, Item 1 “Unaudited Consolidated Financial Statements.”
Current wording
For additional information about this and prior year restructuring plans, seeNote 11. Restructuring, Asset Impairments, and Other Chargesin Part I, Item 1 “Unaudited Consolidated Financial Statements.”
Previous wording
Interest expense increased due to interest associated with the Convertible Notes and a higher interest rate on the portion of our Term Loan Facility subject to a variable interest rate. The interest rate swap contracts expire on September 10, 2024. After that date, the entire balance of our Term Loan Facility will be subject to a variable interest rate. In addition, should we have future borrowings under our Revolving Facility, those borrowings would be subject to a variable rate.
Current wording
Interest expense increased due to interest associated with the Convertible Notes and a higher interest rate on the portion of our Term Loan Facility subject to a variable interest rate. We prepaid in full the Term Loan Facility on September 9, 2024, and the interest rate swap contracts expired on September 10, 2024. Should we have future borrowings under our Term Loan Facility or Revolving Facility, those borrowings would be subject to a variable rate.
Previous wording
SeeNote 16. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements” for information regarding our Convertible Notes.
Current wording
SeeNote 16. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements” for information regarding our debt.
Previous wording
Other income (expense), net consists primarily of foreign exchange gains and losses, gains and losses on sales
Current wording
Other income (expense), net consists primarily of foreign exchange gains and losses and other miscellaneous items. We had unrealized foreign exchange losses during the three and nine months ended September 30, 2024 compared to unrealized gains in the same periods in the prior year. Additionally, during the three months ended September 30, 2024, we incurred costs associated with foreign currency translation adjustments related to liquidated foreign operations and debt discount and fees associated with our Term Loan Facility prepayment. There were no such costs during the same periods in the prior year.
Previous wording
The following table summarizes tax provision (in thousands) and the effective tax rate for our income from continuing operations:
Current wording
The following table summarizes tax provision (benefit) (in thousands) and the effective tax rate for our income from continuing operations:
Previous wording
For both the three and six months ended June 30, 2024, our effective tax rate for 2024 was higher than the same period in the prior year primarily due to the impact of smaller beneficial discrete items in the current period relative to the larger beneficial discrete items in the prior period.
Current wording
The previously announced Zhongshan, China factory closure impacted our effective tax rate in both the three and nine months ended September 30, 2024. For the nine months ended September 30, 2024, our effective tax rate was higher than the same period in the prior year due to smaller beneficial discrete items in the current period relative to the larger beneficial discrete items in the prior period.
Previous wording
Adequate liquidity and cash generation is important to the execution of our strategic initiatives. Our ability to fund our operations, acquisitions, capital expenditures, and product development efforts may depend on our ability to generate cash from operating activities, which is subject to future operating performance, as well as general economic, financial, competitive, legislative, regulatory, and other conditions, some of which may be beyond our control. Our primary sources of liquidity continue to be our available cash, investments, cash generated from operations, and available borrowing capacity under the Revolving Facility (defined inNote 16. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements”).
Current wording
Adequate liquidity and cash generation is important to the execution of our strategic initiatives. Our ability to fund our operations, acquisitions, capital expenditures, and product development efforts may depend on our ability to generate cash from operating activities, which is subject to future operating performance, as well as general economic, financial, competitive, legislative, regulatory, and other conditions, some of which may be beyond our control. Our primary sources of liquidity continue to be our available cash, cash generated from operations, and available borrowing capacity under the Revolving Facility (defined inNote 16. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements”).
Previous wording
As of June 30, 2024, our cash and cash equivalents totaled $986.1 million, while our available funding under our Revolving Facility was $200.0 million. Additionally, we generated $14.9 million of cash flow from continuing operations in the six months ended June 30, 2024. We believe our sources of liquidity will be adequate to meet anticipated debt service, share repurchase programs, and dividends. During the ordinary course of business, we evaluate our cash requirements and, if necessary, adjust our expenditures to reflect the current market conditions and our projected revenue and demand. Our capital expenditures are primarily directed towards manufacturing and operations and can materially influence our available cash for other initiatives.
Current wording
As of September 30, 2024, our cash and cash equivalents totaled $657.3 million, while our available funding under our Revolving Facility was $600.0 million. Additionally, we generated $50.3 million of cash flow from continuing operations in the nine months ended September 30, 2024. We believe our sources of liquidity will be adequate to meet anticipated debt service, share repurchase programs, and dividends. During the ordinary course of business, we evaluate our cash requirements and, if necessary, adjust our expenditures to reflect the current market conditions and our projected revenue and demand. Our capital expenditures are primarily directed towards manufacturing and operations and can materially influence our available cash for other initiatives.
Previous wording
The interest rate swap contracts expire on September 10, 2024. After that date, the entire balance of our Term Loan Facility will be subject to a variable interest rate. In addition, should we have future borrowings under our Revolving Facility, those borrowings would be subject to a variable rate.
Current wording
The interest rate swap contracts previously entered into related to the Term Loan Facility expired on September 10, 2024. Should we have future borrowings under our Term Loan Facility or Revolving Facility, those borrowings would be subject to a variable rate.
Previous wording
In addition to the available capacity on the Revolving Facility, prior to the maturity date of our Credit Agreement, we may request an increase to the financing commitments in either the Term Loan Facility or Revolving Facility by an aggregate amount not to exceed $115.0 million. Any requested increase is subject to lender approval.
Current wording
In addition to the available capacity on the Revolving Facility, prior to the maturity date of our Credit Agreement, we may request an increase to the financing commitments in either the Term Loan Facility or Revolving Facility by an aggregate amount not to exceed $250.0 million. Any requested increase is subject to lender approval.
Previous wording
For more information seeNote 16. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements.” For more information on the interest rate swap that fixes the interest rate for a portion of our Term Loan Facility, seeNote 7. Derivative Financial Instrumentsin Part I, Item 1 “Unaudited Consolidated Financial Statements.”* *
Current wording
For more information seeNote 16. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements.”
Previous wording
During the six months ended June 30, 2024, we paid quarterly cash dividends of $0.10 per share, totaling $7.7 million. We currently anticipate that a cash dividend of $0.10 per share will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions, and other factors.
Current wording
During the nine months ended September 30, 2024, we paid quarterly cash dividends of $0.10 per share, totaling $11.5 million. We currently anticipate that a cash dividend of $0.10 per share will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions, and other factors.
Previous wording
Net cash from operating activities from continuing operations for the six months ended June 30, 2024 was $14.9 million, as compared to $55.5 million for the same period in the prior year. This $40.6 million decrease was primarily due to lower net income from continuing operations. Additionally, during the current year, we had a significant use of cash for inventories due to a strategic inventory buildup as well as lower cash flow from accounts receivable as a result of a decline in revenue. The above items were partially offset by an increase in accounts payable.
Current wording
Net cash from operating activities from continuing operations for the nine months ended September 30, 2024 was $50.3 million, as compared to $128.2 million for the same period in the prior year. This $77.9 million decrease was primarily due to lower net income from continuing operations. Additionally, during the current year, we had a significant use of cash for inventories due to a strategic inventory buildup as well as lower cash flow from accounts receivable as a result of a decline in revenue. In addition, we had unfavorable changes in accounts payable, accrued expenses, and other liabilities.
Previous wording
Net cash used in investing activities for the six months ended June 30, 2024 was $47.6 million, primarily driven by the following:
Current wording
Net cash used in investing activities for the nine months ended September 30, 2024 was $60.5 million, primarily driven by the following:
Previous wording
Net cash used in investing for the six months ended June 30, 2023 was $36.8 million, primarily driven by the following:
Current wording
Net cash used in investing activities for the nine months ended September 30, 2023 was $50.2 million, primarily driven by the following:
Previous wording
Net cash used in financing activities for the six months ended June 30, 2024 was $23.2 million and included the following:
Current wording
Net cash used in financing activities for the nine months ended September 30, 2024 was $374.4 million and included the following:
Previous wording
Net cash used in financing activities for the six months ended June 30, 2023 was $19.0 million and included the following:
Current wording
Net cash from financing activities for the nine months ended September 30, 2023 was $454.2 million and included the following:
Previous wording
During the six months ended June 30, 2024, foreign currency translation had a minimal impact on cash. See “Foreign Currency Exchange Rate Risk” in Part I, Item 3 for more information**.**
Current wording
During the nine months ended September 30, 2024, foreign currency translation had a minimal impact on cash. See “Foreign Currency Exchange Rate Risk” in Part I, Item 3 for more information**.**
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Our network of global service support centers provides repair services, calibration, conversions, upgrades, refurbishments, and used equipment to companies that use our products.