Supertex Reports First Fiscal Quarter Results
biz.yahoo.com
Street was looking for 6 cents, SUPX reports 9 cents.
Is it enough to finally break $13? If not, I'll look at buying more.
Happily Long SUPX,
Duke
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(full story)
Monday July 12, 5:01 pm Eastern Time
Company Press Release
Supertex Reports First Fiscal Quarter Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 12, 1999--Supertex, Inc.
(NASDAQ: SUPX - news) reported that for the first fiscal quarter
ended June 30, 1999, net sales increased 25% from $13,001,000 to
$16,297,000, compared to the same quarter of the prior year.
Net income decreased 52% from $2,207,000 or $0.18 per share to
$1,069,000 or $0.09 per share, primarily due to a non-recurring
payment of $1,350,000 to Orbit Semiconductor, Inc. under a process
development agreement. This is the final payment to Orbit for
assisting Supertex in accelerating the process transfer to the
recently acquired six-inch wafer fabrication facility (fab) from
Supertex's existing four-inch fab which is scheduled to close by the
end of this fiscal year.
Dr. Henry C. Pao, President & CEO of Supertex, said, ''We are very
pleased with this quarter's accomplishments. Sales increased
sequentially 25% from the prior quarter. This sales increase was due
to our recently acquired foundry business through the fab acquisition
as well as our core business. Our gross margin was adversely affected
by the extra overhead absorption of the two fabs, including the
double declining depreciation of the physical assets of the new fab.
''I am encouraged that this is turning out to be a more strategically
significant acquisition for Supertex than we envisioned. Combining
with our high voltage products and the foundry business from the fab
acquisition, we should be able to gain economy of scale once all the
processes are transferred to the new fab. The fab's submicron
capability and its installed capacity offer us many more
opportunities and sales elasticity in imaging and telecommunication
markets.
''I am excited that we have now set the stage for growth. Current
design-in and booking activities, especially in our telecommunication
market, have improved significantly.''
Supertex, Inc. is a publicly held, mixed signal semiconductor
manufacturer, focused in high voltage interface products for use in
the telecommunications, imaging, and medical electronics markets.
Certain matters discussed in this press release are forward-looking
statements that involve risks and uncertainties. The industry in
which the Company competes is characterized by extreme rapid changes
in technology and frequent new product introductions. Factors that
could affect future results include general economic conditions, both
in the United States and foreign markets, economic conditions
specific to the semiconductor industry, risks associated with
customer concentration, the successful integration of the newly
acquired wafer fabrication facility and other risks associated with
the acquisition, the Company's ability to introduce new products, its
ability to enhance existing products, its ability to meet the
continually changing requirements of its customers, its ability to
manufacture efficiently, its ability to control costs, and its
ability to maintain and enhance relationships with its assembly
subcontractors and independent distributors and sales
representatives.
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SUPERTEX, INC.
INCOME STATEMENT INFORMATION (unaudited)
First Quarter Ended June 30,
1999 1998
(in thousands, except per
share amounts)
Net sales $16,297 $13,001
Cost of sales 10,741 6,907
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Gross profit 5,556 6,094
Research and development 2,835 1,501
Selling, general and
administrative 1,492 1,692
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Income from operations 1,229 2,901
Interest and other income 367 441
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Income before income taxes 1,596 3,342
Provision for income taxes 527 1,135
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Net income $ 1,069 $ 2,207
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Net income per share
Basic $ 0.09 $ 0.18
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Diluted $ 0.09 $ 0.18
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Shares used in per
share computation
Basic 12,082 12,098
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Diluted 12,212 12,322
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SUPERTEX, INC.
CONSOLIDATED BALANCE SHEET INFORMATION(unaudited)
June 30, March 31,
1999 1999
(in thousands)
ASSETS
Cash, cash equivalents and
short-term investments $30,485 $29,556
Trade receivables 12,440 10,860
Inventories 12,731 11,330
Deferred income taxes- current 1,862 1,862
Other current assets 1,001 1,110
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Total current assets 58,519 54,718
Property, plant and equipment 15,119 15,946
Long-term receivables 41 0
Intangible Assets 1,815 2,072
Deferred Income Taxes 1,853 1,853
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TOTAL ASSETS $77,347 $74,589
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LIABILITIES
Trade accounts payable
and accrued liabilities $12,284 $10,711
Income taxes payable 519 --
Deferred income on
shipments to distributors 1,065 1,198
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Total current liabilities 13,868 11,909
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SHAREHOLDERS' EQUITY
Common stock 20,949 20,895
Accumulated other
comprehensive income 358 356
Retained earnings 42,172 41,429
Total shareholders' equity 63,479 62,680
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $77,347 $74,589
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Contact:
Supertex, Inc.
Henry C. Pao, 408/744-0100
investors@supertex.com
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