Margins continue to be lousy and operating costs are rising as fast as revenues. Not a good combination, imo. Somewhere the company should be trying to find a way to reduce their expenses. Doesn't seem to be a priority with Nathan or Uzi. Insiders continue to get fat while shareholders dangle in the wind. After the Claire deal, I expected much more out of the company by this point in time. I'm very, very disappointed with their progress. One step forward, two back.... It's nice to have strong demand for your product but if you can't make any money off it, what's the point?
IXYS Announces Record Revenues, Backlog and Bookings in September Quarter
Wednesday November 1, 4:30 pm ET
SANTA CLARA, Calif.--(BUSINESS WIRE)--IXYS Corporation (NASDAQ:IXYS - News) today reported net revenues of $71.9 million for the second fiscal quarter ended 9/30/2006, an increase of 13.4%, as compared with net revenues of $63.4 million for the same period in the prior fiscal year. For the six months ended 9/30/2006, IXYS reported net revenues of $139.6 million, an increase of 10.2% as compared with net revenues of $126.7 million for the same period in the prior fiscal year.
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A power semiconductor company, IXYS develops power and RF semiconductors and control ICs that are used to improve power conversion efficiency in a range of applications, including telecommunication infrastructure, motor drives, medical systems and transportation. IXYS also produces digital and analog ICs that control flat panel displays, medical instruments and telecommunication products (i.e., VoIP).
Within the renewable energy industry, IXYS supplies chips that control/regulate high voltages between DC energy (windmills/solar panels) and AC energy (U.S. electric grid). In addition, IXYS has developed solar cell arrays and cards for charging portable batteries.
"We experienced record revenues and bookings in the September quarter, and have had three consecutive quarters of record backlog. European and Asian sales have been especially strong; the USA market remained stable. We continue to see increased demands for our unique power semiconductors in the industrial markets and the alternative renewable energy markets. Our IC products are selling strongly in the telecommunications and power managements markets," said Dr. Nathan Zommer, Chief Executive Officer.
Gross profit was $22.1 million, or 30.8% of net revenues, for the quarter ended 9/30/2006, as compared to gross profit of $21.2 million, or 33.5% of net revenues, for the same quarter in the prior fiscal year. Gross profit for the six months ended 9/30/2006 was $44.0 million, or 31.5% of net revenues, as compared to gross profit of $42.4 million, or 33.4% of net revenues, for the same period in the prior fiscal year.
Net income for the quarter ended 9/30/2006 was $3.8 million, or $0.11 per diluted share, as compared to $5.5 million, or $0.16 per diluted share, for the same quarter in the prior fiscal year. Net income for the six months ended 9/30/2006, was $28.1 million, or $0.79 per diluted share, as compared to net income of $10.7 million, or $0.30 per diluted share, for the same period in the prior fiscal year.
Results for the six months ended 9/30/2006 included adjustments in the quarter ended 6/30/2006 for the litigation provision and related tax effects of $21.4 million. Excluding the impact of the adjustments in the quarter ended 6/30/2006 for the litigation provision and related tax effects, net income for the six months ended 9/30/2006 would have been $0.18 per diluted share.
The corporation repurchased 644,000 IXYS shares for $5.7 million during the September quarter. Chief Financial Officer Uzi Sasson added, "We plan to continue buying back shares under our authorized stock buyback program."
"In seeking to maintain consistent revenue growth, IXYS has focused on providing products and services to our largest customers. As a result, much of our revenue growth stemmed from products with lower margins," stated Mr. Sasson. "Our business continues to be strong, as evidenced by our record bookings of $80.9 million and record backlog of $102.2 million. We project higher revenues in the December 2006 quarter, between $72 million and $74 million."
About IXYS
Since its inception in 1983, IXYS Corporation has been developing technology-driven products to improve power conversion efficiency. IXYS is a U.S. pioneer in the development of power semiconductors that effectively monitor electrical voltage to produce maximum effect with the least expenditure of energy.
Diminishing natural resources, demand for cheap energy and environmental directives for energy efficiency represent a significant challenge. IXYS' power semiconductors and mixed-signal integrated circuits can play a vital role in reducing energy costs and consumption - as their products regulate the amount of energy utilized by everyday products. With a customer base of over 3,000 telecommunications, transportation, industrial, medical and consumer companies, IXYS is a leading provider of power semiconductors in the U.S.
A forerunner in the alternative and renewable energy industry, IXYS focuses on harnessing wind and solar power for conversion to the U.S. electrical power grid - one more way to avoid another 2003 blackout. In addition, IXYS' R&D teams also developed solar cell arrays and cards for charging portable batteries - with applications for traditional alkaline batteries, laptops, cell phones, RFID tags and sensors, to name a few.
IXYS, and its subsidiary companies, offer a diversified product base that addresses worldwide needs for power conversion, electrical efficiency and renewable energy.
Non-GAAP Financial Information
Included above and within the attached schedules are certain non-GAAP financial figures. Management believes non-GAAP net income and non-GAAP net income per share are useful measures of operating performance because they exclude the impact of the litigation provision related to the LoJack litigation and the impact of various adjustments to deferred tax assets, which are in the nature of one-time events. However, these non-GAAP measures should be considered in addition to, not as a substitute for, or superior to net income and net income per share, or other financial measures prepared in accordance with GAAP.
Safe Harbor Statement
The foregoing press release contains forward-looking statements, including those related to bookings, backlog, the demand for and sales of our products in various markets, the plan to continue buying back shares and our projection for revenues in the December 2006 quarter. Actual results may vary materially from those contained in the forward-looking statements, due to changes in customer delivery schedules, the cancellation of orders, an unanticipated decline in our business, an unexpected increase or leveling of our costs or reduced cash flows, among other things. Further information on other factors that could affect IXYS is detailed and included in IXYS' Form 10-Q for the fiscal quarter ended June 30, 2006, as filed with the Securities and Exchange Commission. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements.
Additional information may be obtained by visiting IXYS' website at ixys.com, or by contacting the company directly.
IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, March 31,
2006 2006
------------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 66,936 $ 78,505
Accounts receivable, net 45,434 42,774
Other receivables 1,752 1,433
Inventories, net 76,550 60,357
Prepaid expenses and other current
assets 3,186 2,688
Deferred income taxes 10,423 25,049
------------- -----------
Total current assets 204,281 210,806
Plant and equipment, net 44,912 40,049
Other assets 12,549 12,580
Deferred income taxes 16,808 16,552
------------- -----------
Total assets $ 278,550 $ 279,987
============= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capitalized lease
obligations $ 2,538 $ 2,255
Current portion of notes payable to
bank 1,128 973
Accounts payable 24,516 20,259
Accrued expenses and other current
liabilities 33,426 68,504
------------- -----------
Total current liabilities 61,608 91,991
Capitalized lease and other long term
obligations, net of current portion 14,857 14,447
Pension liabilities 14,211 13,576
------------- -----------
Total liabilities 90,676 120,014
------------- -----------
Common stock 347 347
Additional paid-in capital 153,634 156,664
Notes receivable from stockholders 0 (59)
Retained earnings 27,470 (614)
Accumulated other comprehensive income 6,423 3,635
------------- -----------
Stockholders' equity 187,874 159,973
------------- -----------
Total liabilities and stockholders'
equity $ 278,550 $ 279,987
============= ===========
IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
--------------------- ---------------------
2006 2005 2006 2005
--------------------- ---------------------
Net revenues $ 71,875 $ 63,385 $ 139,616 $ 126,726
Cost of goods sold 49,755 42,154 95,612 84,350
--------------------- ---------------------
Gross profit 22,120 21,231 44,004 42,376
--------------------- ---------------------
Operating expenses:
Research, development
and engineering 4,921 4,083 10,029 8,239
Selling, general and
administrative 10,828 9,905 22,884 19,162
Litigation provision 183 - (36,644) -
--------------------- ---------------------
Total operating
expenses 15,932 13,988 (3,731) 27,401
--------------------- ---------------------
Operating income 6,188 7,243 47,735 14,975
Other (expense) income,
net 200 786 (644) 1,211
--------------------- ---------------------
Income before income
tax provision 6,388 8,029 47,091 16,186
Provision for income tax
expense 2,600 2,485 19,007 5,503
--------------------- ---------------------
Net income $ 3,788 $ 5,544 $ 28,084 $ 10,683
===================== =====================
Net income per share -
basic $ 0.11 $ 0.17 $ 0.82 $ 0.32
===================== =====================
Weighted average shares
used in per share
calculation - basic 33,929 33,525 34,051 33,470
===================== =====================
Net income per share -
diluted $ 0.11 $ 0.16 $ 0.79 $ 0.30
===================== =====================
Weighted average shares
used in per share
calculation - diluted 35,124 35,758 35,326 35,871
===================== =====================
GAAP reconciliation to non-GAAP
(In thousands, except per share amounts)
Quarter Ended Six Months Ended
September September September September
30, 2006 30, 2005 30, 2006 30, 2005
--------- --------- --------- ---------
Net income, as reported (GAAP) $ 3,788 $ 5,544 $ 28,084 $ 10,683
Adjustments to GAAP net
income:
Litigation provision and
related tax effects - - (21,432) -
--------- --------- --------- ---------
Non-GAAP net income $ 3,788 $ 5,544 $ 6,652 $ 10,683
========= ========= ========= =========
Net income per share-basic, as
reported (GAAP) $ 0.11 $ 0.17 $ 0.82 $ 0.32
Adjustments to GAAP net income
per share-basic:
Litigation provision and
related tax effects - - (0.63) -
--------- --------- --------- ---------
Net income per share-basic,
(non-GAAP) $ 0.11 $ 0.17 $ 0.19 $ 0.32
========= ========= ========= =========
Net income per share-diluted,
as reported (GAAP) $ 0.11 $ 0.16 $ 0.79 $ 0.30
Adjustments to GAAP net income
per share-diluted:
Litigation provision and
related tax effects - - (0.61) -
--------- --------- --------- ---------
Net income per share-diluted,
(non-GAAP) $ 0.11 $ 0.16 $ 0.18 $ 0.30
========= ========= ========= =========
Weighted average shares used
in per share calculation
Basic 33,929 33,525 34,051 33,470
Dilutive weighted average
shares 1,195 2,233 1,275 2,401
--------- --------- --------- ---------
Diluted 35,124 35,758 35,326 35,871
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