For the fourth quarter, revenues were a record $102.7 million, up 57.0 percent from $65.4 million for the fourth quarter of 1999, and up 6.6 percent from $96.3 million for the third quarter of 2000. The company’s prior year results have been restated to reflect the April 6, 2000 acquisition of Noah Holdings and the August 18, 2000 acquisition of Sekidenko, Inc., using the pooling of interests method of accounting.
We are pleased to report our fifth consecutive quarter of record revenues and net income, as well as record results for the full year 2000, said Doug Schatz, Chairman and Chief Executive Officer. Continued market share gains and expansion of our product and technology portfolio were important contributors to our record financial performance in 2000.
Advanced Energy has made considerable progress in expanding beyond our core product offering to become an integrated supplier of critical solutions that build on our foundation of market leadership in power conversion and control. Our acquisitions of Noah Holdings and Sekidenko in 2000, and EMCO in early 2001, add essential technologies to our offering that enable our OEM customers to have more control over the increasingly complex semiconductor manufacturing process, said Mr. Schatz.
Net income for the 2000 fourth quarter was $27.4 million, or $0.83 per diluted share, which includes a $7.6 million extraordinary item, net of income taxes, related to the company’s buy-back of a portion of its convertible subordinated notes.
Net income before the extraordinary item in the fourth quarter of 2000 was $19.8 million, or $0.61 per diluted share. This compares to net income of $16.5 million, or $0.51 per diluted share for the third quarter of 2000 excluding one-time charges related to the Sekidenko acquisition, restructuring charges and a gain on an investment. This also compares to net income of $8.5 million, or $0.27 per diluted share for the fourth quarter of 1999. Cash earnings per share for the fourth quarter 2000 were $0.86.
The fourth quarter increase in net income also benefited from a lower effective tax rate of 31.5 percent, compared to the annualized effective tax rate of 35 percent. At the previously expected tax rate of 34 percent, earnings per diluted share from operations would have been $0.58 for the fourth quarter excluding the extraordinary item, the minority interest and assuming no conversion of the subordinated notes. This compares to net income of $8.5 million, or $0.27 per diluted share, in the year ago period.
Full Year Review
For the 2000 twelve-month period, revenues were $359.8 million compared with $202.8 million for the year ago period, and increase of 77.4 percent. Gross profit for the 2000 twelve-month period was $176.5 million, or 49.0 percent, an improvement compared with $92.2 million or 45.5 percent for the twelve-month 1999 period. Net income for the 2000 twelve-month period was $68.0 million, or $2.10 per diluted share, compared with $19.1 million, or $0.62 per diluted share, for the twelve-month period ended December 31, 1999. Cash earnings per share for the year 2000 were $2.29. Operating net income excluding merger and restructuring costs, the one-time gain and the extraordinary item was $60.9 million, or $1.88 per diluted share for the full year 2000.
The year 2001 will be challenging given the limited visibility within the semiconductor and semiconductor equipment industry. We do expect a pause in capacity-driven purchases, as the semiconductor manufacturers work off their excess inventories. We remain optimistic about the industry’s twelve-to-eighteen month outlook. The current industry cycle includes significant opportunities for technology-driven equipment purchases, including the transition to 300mm wafer processing and use of new materials such as copper and low-k dielectrics. We believe we will continue to gain market share and benefit from the technology purchases, said Mr. Schatz. Given the revised industry outlook for semiconductor and semiconductor equipment revenue in the coming quarters, we are readjusting our near-term forecast for the first half of 2001. We anticipate first quarter 2001 revenues in the range of $83 million to $86 million and earnings per share in the $0.25 to $0.28 range. We anticipate the second quarter to be flat and within these same ranges. We believe this forecast better reflects the anticipated reduced industry outlook with current visibility, and that we are in a pause in the growth cycle, said Mr. Schatz.
