Supertex Reports Third Fiscal Quarter Results

Supertex Reports Third Fiscal Quarter Results SUNNYVALE, Calif., Jan. 18 /PRNewswire-FirstCall/ -- Supertex, Inc. (NASDAQ:SUPX) today reported that net sales for its third fiscal quarter ended January 1, 2005 increased 15% to $14,925,000 from the $13,010,000 reported for the same quarter of the prior year, but decreased 4% compared with the prior quarter of $15,548,000. Net income for the quarter increased to $2,250,000 or $0.17 per share on a diluted basis from $647,000 or $0.05 per share on a diluted basis for the same quarter of the prior year, and increased 17% from $1,916,000 or $0.15 per share on a diluted basis when compared with the prior quarter. For the nine-month period ended January 1, 2005 compared with the same period of the prior year, net sales increased 18% from $37,805,000 to $44,715,000, and net income increased from $1,869,000 to $6,026,000. Dr. Henry C. Pao, President and CEO commented, "Our third fiscal quarter sales came in slightly below our conference call guidance in October, primarily because the decreases in our medical business and our foundry service business were slightly more than forecasted in the guidance. Gross margin for the quarter improved 1% to 53%, as compared to the prior quarter despite lower sales, partly due to a more favorable product mix. Inventory was $11.9 million, an increase of approximately $724,000 from the prior quarter. Cash flow was positive. Cash, cash equivalent, and short-term investments increased by $4.3 million from prior quarter. R&D spending decreased 22% from the prior quarter because some of our process technology development work was completed and moved on to production. We continue to add sales and technical marketing resources to support new products. We are pleased with this quarter of transition to our newer products. We believe we will see sequential quarterly revenue growth in these products. However, a forecasted decline in our lower margin foundry service business may offset some of these increases. We plan to introduce several new products in our fourth fiscal quarter." Forward-Looking Statements: The industry in which we compete is characterized by extreme rapid changes in technology and frequent new product introductions. We believe that our long-term growth will depend largely on our ability to continue to enhance existing products and to introduce new products and features that meet the continually changing requirements of our customers. All statements contained in this press release that are not historical facts are forward-looking statements. They are not guarantees of future performance or events. They are based upon current expectations, estimates, beliefs, and assumptions about the future, which may prove incorrect, and upon our goals and objectives, which may change. Often such statements can be identified by the use of the words such as "will," "intends," "expects," "plans," "believes," "anticipates," and "estimates." Examples of a forward-looking statement include that we believe we will see sequential quarterly revenue growth in these newer products, and however, a forecasted decline in our lower margin foundry service business may offset some of these increases, and we plan to introduce several new products in our fourth fiscal. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events but rather involve a number of risks and uncertainties including, but not limited to, whether we successfully release our new devices into volume production, whether our customers experience the demand we anticipate for their products, including products in the pre-production stage, which incorporate our devices, whether our foundry customers decrease their requirements for our foundry services, and whether competitors introduce devices at lower prices than our devices causing price erosion as well as other risk factors detailed in our Form 8-K, 10-K, and 10-Q filings with the Securities and Exchange Commission. Due to these and other risks, our future actual results could differ materially from those discussed above. We undertake no obligation to publicly release updates or revisions to these statements which speak only as of this date. Conference Call Details The Company will host a conference call at 2:30 p.m. PST (5:30 p.m. EST) on January 18, 2005, following the earnings release. President and Chief Executive Officer, Dr. Henry C. Pao and Executive Vice President, Richard E. Siegel will present an overview of the third fiscal quarter financial results, discuss current business conditions and then respond to questions. The call is available live to listen or ask questions to any interested party by dialing 800-795-1259 (domestic) or 785-832-2041 (toll, international) before the scheduled start time, and asking to be connected to the Supertex Third Quarter Investor Call. A recorded replay will be available until 11:59 p.m., February 2, 2005 by dialing 888-562-3375 (domestic) or 402-220-1134 (toll, international). About Supertex Supertex, Inc. is a publicly held mixed signal semiconductor manufacturer, focused in high voltage interface products for use in the telecommunications, networking systems, flat panel displays, medical and industrial electronics industries. Supertex product, corporate and financial information is readily available at www.supertex.com. For further information, contact Henry Pao at Supertex, Inc., 1235 Bordeaux Drive, Sunnyvale, California 94089, 408-222-8888 or visit our Website at http://www.supertex.com/ . SUPERTEX, INC. CONSOLIDATED INCOME STATEMENT INFORMATION (unaudited) Three-months Ended Nine-months Ended (in thousands, except per share amounts) Jan. 1, Dec. 27, Jan. 1, Dec. 27, 2005 2003 2005 2003 Net sales $14,925 $13,010 $44,715 $37,805 Cost of sales 7,043 7,703 21,543 22,515 Gross profit 7,882 5,307 23,172 15,290 Research and development 2,086 2,418 7,242 6,925 Selling, general and administrative 3,049 2,550 8,400 7,144 Income from operations 2,747 339 7,530 1,221 Interest and other income, net 692 599 1,464 1,487 Income before income taxes 3,439 938 8,994 2,708 Provision for income taxes 1,189 291 2,968 839 Net income $2,250 $647 $6,026 $1,869 Net income per share Basic $0.17 $0.05 $0.47 $0.15 Diluted $0.17 $0.05 $0.46 $0.14 Shares used in per share computation Basic 13,023 12,775 12,957 12,728 Diluted 13,419 13,086 13,204 13,013 SUPERTEX, INC. CONSOLIDATED BALANCE SHEET INFORMATION (unaudited) January 1, 2005 April 3, 2004 (in thousands) ASSETS Cash and cash equivalents $81,662 $71,117 Short term investments 5,797 5,007 Accounts receivable, net 8,755 7,667 Inventories, net 11,891 12,606 Deferred income taxes 4,989 4,989 Other current assets 790 642 Total current assets 113,884 102,028 Property, plant and equipment 8,268 9,731 Other assets 96 94 Deferred income taxes 944 944 TOTAL ASSETS $123,192 $112,797 LIABILITIES Trade accounts payable $3,055 $2,354 Accrued salaries, wages and employee benefits 8,550 7,449 Other accrued liabilities 548 481 Deferred revenue 3,015 3,254 Income taxes payable 2,097 1,485 Total current liabilities 17,265 15,023 SHAREHOLDERS' EQUITY Common stock 34,489 32,134 Retained earnings 71,438 65,640 Total shareholders' equity 105,927 97,774 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $123,192 $112,797 Source: Supertex, Inc. CONTACT: Dr. Henry C. Pao, President & CEO of Supertex, Inc., +1-408-222-8888, or fax, +1-408-222-4800, or investors@supertex.com Web site: http://www.supertex.com/ ------- Profile: International Entertainment