SOURCE: Supertex

Supertex

May 08, 2013 16:05 ET

Supertex Reports Fourth Fiscal Quarter and Fiscal Year-End Results

SUNNYVALE, CA--(Marketwired - May 8, 2013) - Supertex, Inc. (NASDAQ: SUPX)

  • Q4 sales $14.6 million, 2% higher sequentially
  • Full year sales $61.0 million, 7% lower than the prior fiscal year
  • Q4 GAAP EPS $0.13 and full year GAAP EPS $0.36 representing a one cent increase over the prior quarter and two cent decline for the year
  • Q4 gross margin 52.4% compared to 50.9% in the prior quarter and FY13 gross margin 48.9% compared to 46.8% last fiscal year
  • Q4 and total year net cash flow from operations $3.5 million and $17.9 million, respectively
  • Q1 FY14 sales expected to grow approximately 6% sequentially 

Supertex, Inc. (NASDAQ: SUPX), a leader in high voltage mixed signal semiconductors, today reported financial results for the fourth fiscal quarter and fiscal year ended March 30, 2013. Net sales for the fourth fiscal quarter were $14,649,000, a 2% increase compared to the prior quarter of $14,373,000 and an 11% decrease compared to $16,451,000 in the same quarter last year. On a GAAP basis, net income in the fourth fiscal quarter was $1,529,000 or $0.13 per diluted share, as compared with $1,431,000 or $0.12 per diluted share in the prior fiscal quarter, and $1,273,000 or $0.11 per diluted share in the same quarter of the prior fiscal year.

For the fiscal year ended March 30, 2013, net sales declined 7% to $61,000,000 versus $65,535,000 for the prior fiscal year. On a GAAP basis, net income declined 11% to $4,247,000, or $0.36 per diluted share, as compared with $4,749,000, or $0.38 per diluted share.

Non-GAAP earnings per diluted share for the fourth quarter of fiscal 2013 were $0.18, excluding pre-tax employee stock-based compensation of $639,000, compared with $0.18 in the prior quarter, excluding pre-tax employee stock-based compensation of $648,000, and $0.16 in the same quarter of the prior fiscal year, excluding pretax employee stock-based compensation of $788,000. For the fiscal year ended March 30, 2013, non-GAAP earnings per diluted share were $0.59, excluding pre-tax employee stock-based compensation of $2,801,000, as compared to $0.62 for the same period of the prior fiscal year, excluding pre-tax employee stock-based compensation of $3,031,000.

Higher shipments of LED backlighting products and printer head drivers drove the sequential sales increase. Sales of a new LED backlighting driver for a new series of TVs, including 3D, grew significantly, and sales of LED drivers for backlighting high end monitors doubled sequentially. Shipments of printer head drivers, some of which are used in 3D printers, more than doubled. These increases more than offset the seasonal decline in Medical product sales.

Sequentially, gross margin increased by 150 basis points and operating expense was essentially flat. Income tax rate was 15% compared to a tax benefit of 22% last quarter. Cash flow from operating activities was $3.5 million.

Fiscal 2013 recap

"While total annual sales declined 7% compared to fiscal 2012, we believe our quarterly sales have troughed and we expect our new products will fuel future growth," stated Dr. Henry C. Pao, President and CEO. "We launched 22 new products during fiscal 2013 and have many more in the pipeline, of which four are expected to be launched in the first quarter of fiscal 2014. Most of our new products address our growth markets, medical and LED general lighting and backlighting, however we are also working on products for new industrial applications. In addition, we are working on several exciting custom products which could generate revenue even this fiscal year. During fiscal 2013 we generated $4.2 million in net income with a tax rate of 11% and $17.9 million in positive cash flow from operating activities. We paid a special dividend of $11.5 million and repurchased 498,000 shares of our common stock for $8.7 million."

Outlook

Visibility of sales growth opportunities for the products recently launched is much better than a year ago. Current book-to-bill ratio is 1.1. Sales in the first quarter of fiscal 2014 are expected to be approximately 6% higher sequentially with increases occurring in most target markets. First quarter gross margin is expected to be 52% to 53%, with a tax benefit of approximately $0.3 million due to expiration of statutes of limitations on uncertain tax positions. The Company believes it is on track to meet its goal of growing quarterly sales by 20% in the fourth quarter of fiscal 2014 compared to the same period of fiscal 2013.

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 forward-looking statements include our belief that quarterly sales have troughed, with anticipated first fiscal quarter sales to be approximately 6% higher sequentially with increases occurring in most target markets, our expectation that our new products will fuel future growth, and that we will launch four in the first fiscal quarter, our belief that we're on track to meet our goal of growing quarterly sales by 20% in the fourth quarter of fiscal 2014 compared to the same period of fiscal 2013, our anticipation that gross margin will be 52% to 53% in the first fiscal quarter of 2014 and that we'll have a net tax benefit of approximately $0.3 million in the first quarter, and our view that some of the new custom products we're working on could generate revenue this fiscal year.

These 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 our customers experience the demand we anticipate for their products based in part upon their input and our order backlog, whether our distributors have the sell-through we anticipate and whether we receive the additional orders we anticipate, whether the designed performance of our devices satisfies our customers' requirements so that they continue to design our devices into their products, whether our devices perform to their design specification, whether competitors introduce devices at lower prices than our devices causing price erosion, whether we are successful in the engineering of new products, whether we encounter production issues in device manufacturing or moving new products from engineering into production, whether customers have requirements for deliveries of newly launched products during fiscal 2014, whether the world-wide economy will be healthy during fiscal 2014, and whether our fab equipment continues to operate at expected capacities without need of replacement, 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 that speak only as of this date.

Conference Call Details

The Company will host a conference call at 2:30 p.m. PT (5:30 p.m. ET) on May 8, 2013, following the earnings release. President and CEO, Dr. Henry C. Pao, and CFO, Phil Kagel, will present an overview of the fourth fiscal quarter and year-end financial results, discuss current business conditions, and then respond to questions.

The call will be available live for any interested party by dialing 866-952-1906 (domestic) or 785-424-1825 (toll, international) 5 minutes before the scheduled start time. A recorded replay will be available shortly after the call as a downloadable .mp3 file at http://www.supertex.com/company_ir.html until 11:59 p.m. ET, June 7, 2013.

About Supertex

Supertex, Inc. is a publicly held mixed signal semiconductor manufacturer, focused in high voltage products for use in the medical ultrasound imaging, LCD TV and computer monitor backlighting, LED general lighting, telecommunications, printer, flat panel display, industrial and consumer product industries. Supertex product, corporate and financial information is readily available at our website: http://www.supertex.com.

For further information, contact Investor Relations at Supertex, Inc., 1235 Bordeaux Drive, Sunnyvale, California 94089, 408-222-8888 or visit our website at http://www.supertex.com.

Use of Non-GAAP Financial Information

To supplement our financial results presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP net income and diluted non-GAAP net income per share. We present such non-GAAP financial measures in reporting our financial results to provide investors with an additional tool to evaluate our operating results. Because these non-GAAP measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management uses each of the above non-GAAP financial measures internally to understand, manage and evaluate our business. Our management believes it is useful for us and for investors to review, as applicable, both GAAP information, which includes employee stock-based compensation expense, and the non-GAAP measures, which exclude this information, in order to assess the performance of our core continuing businesses and for planning and forecasting in future periods. Each of these non-GAAP measures is intended to provide investors with an understanding of our operational results and trends that more readily enables them to analyze our base financial and operating performance and facilitate period-to-period comparisons and analysis of operating trends. Our management believes each of these non-GAAP financial measures is useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making.

Our GAAP cost of sales and operating expenses include employee stock-based compensation. Our non-GAAP financial measures reflect adjustments to exclude this employee stock-based compensation. We believe cost of sales excluding share-based compensation, R&D expense excluding share-based compensation, and SG&A expense excluding share-based compensation are useful information for investors because comparative differences in the corresponding GAAP measures for different periods may reflect factors such as a different stock price when equity awards were made and different equity award practices rather than changes in the operation of the business. Stock options are the form of equity compensation we presently utilize and they are a key incentive we offer our employees. We believe they have contributed to the sales earned during the period and will contribute to our future sales generation. Employee stock-based compensation expenses will recur in future periods. 

   
SUPERTEX, INC.  
CONSOLIDATED BALANCE SHEET INFORMATION  
(unaudited)  
             
    March 30, 2013     March 31, 2012  
    (in thousands)  
ASSETS                
Cash and cash equivalents   $ 16,414     $ 19,860  
Short term investments     123,847       111,137  
Trade accounts receivable, net     7,335       8,021  
Inventories     11,344       14,438  
Deferred tax assets     7,517       7,529  
Prepaid income taxes     3,203       3,032  
Prepaid expenses and other current assets     2,538       6,786  
  Total current assets     172,198       170,803  
Long term investments     13,800       25,900  
Property, plant and equipment, net     4,334       4,941  
Other assets     787       621  
Deferred tax assets, noncurrent     5,659       5,375  
TOTAL ASSETS   $ 196,778     $ 207,640  
                 
LIABILITIES                
Trade accounts payable   $ 2,521     $ 1,994  
Accrued salaries and employee benefits     13,230       12,434  
Other accrued liabilities     633       615  
Deferred revenue     2,651       2,560  
Income taxes payable     165       23  
  Total current liabilities     19,200       17,626  
Income taxes payable, noncurrent     3,535       4,161  
Deferred tax liabilities, noncurrent     115       -  
Other accrued liabilities, noncurrent     575       561  
  Total liabilities     23,425       22,348  
                 
                 
SHAREHOLDERS' EQUITY                
Common stock     68,389       68,031  
Accumulated other comprehensive loss     (564 )     (1,345 )
Retained earnings     105,528       118,606  
  Total shareholders' equity     173,353       185,292  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 196,778     $ 207,640  
                 
                 
 
SUPERTEX, INC.
CONSOLIDATED INCOME STATEMENT INFORMATION
(unaudited)
                         
    Three Months Ended     Twelve Months Ended
    (in thousands, except per share amounts)
    March 30, 2013   December 29, 2012     March 31, 2012     March 30, 2013   March 31, 2012
Net sales   $ 14,649   $ 14,373     $ 16,451     $ 61,000   $ 65,535
Cost of sales(1)     6,970     7,057       8,723       31,163     34,855
  Gross profit     7,679     7,316       7,728       29,837     30,680
Research and development(1)     3,494     3,440       3,885       13,976     14,399
Selling, general and administrative(1)     3,191     3,113       3,614       13,137     12,840
  Income from operations     994     763       229       2,724     3,441
Interest and other income, net     800     412       837       2,030     1,404
  Income before income taxes     1,794     1,175       1,066       4,754     4,845
Provision for (Benefit from) income taxes     265     (256 )     (207 )     507     96
  Net income   $ 1,529   $ 1,431     $ 1,273     $ 4,247   $ 4,749
Net income per share:                                  
    Basic   $ 0.13   $ 0.12     $ 0.11     $ 0.36   $ 0.38
    Diluted   $ 0.13   $ 0.12     $ 0.11     $ 0.36   $ 0.38
Shares used in per share computation:                                  
    Basic     11,519     11,567       12,044       11,716     12,340
    Diluted     11,521     11,568       12,048       11,718     12,351
                                   
                                   
(1) Includes amortization of employee stock-based compensation as follows:                            
    Cost of sales   $ 100   $ 108     $ 156     $ 472   $ 590
    Research and development   $ 346   $ 318     $ 343     $ 1,348   $ 1,271
    Selling, general and administrative   $ 193   $ 222     $ 289     $ 981   $ 1,170
                                   
                                   
   
SUPERTEX, INC.  
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS  
(unaudited)  
                               
    Three Months Ended     Twelve Months Ended  
    (in thousands, except per share amounts)  
    March 30, 2013     December 29, 2012     March 31, 2012     March 30, 2013     March 31, 2012  
GAAP net income   $ 1,529     $ 1,431     $ 1,273     $ 4,247     $ 4,749  
Adjustment for stock-based compensation included in:                                        
  Cost of sales     100       108       156       472       590  
  Research and development     346       318       343       1,348       1,271  
  Selling, general and administrative     193       222       289       981       1,170  
    Subtotal     639       648       788       2,801       3,031  
Tax effect of stock-based compensation     (69 )     (11 )     (93 )     (116 )     (160 )
Non-GAAP net income excluding employee stock-based compensation   $ 2,099     $ 2,068     $ 1,968     $ 6,932     $ 7,620  
                                         
Non-GAAP net income per share:                                        
  Basic   $ 0.18     $ 0.18     $ 0.16     $ 0.59     $ 0.62  
  Diluted   $ 0.18     $ 0.18     $ 0.16     $ 0.59     $ 0.62  
Shares used in per share computation:                                        
  Basic     11,519       11,567       12,044       11,716       12,340  
  Diluted     11,521       11,568       12,048       11,718       12,351  
                                           
                                           
   
SUPERTEX, INC.  
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE  
(unaudited)  
                               
    Three Months Ended     Twelve Months Ended  
    (in thousands, except per share amounts)  
    March 30, 2013     December 29, 2012     March 31, 2012     March 30, 2013     March 31, 2012  
Shares used in per share computation:                                        
  Diluted     11,521       11,568       12,048       11,718       12,351  
                                         
DILUTED:                                        
GAAP net income per share   $ 0.13     $ 0.12     $ 0.11     $ 0.36     $ 0.38  
Adjustments to reconcile net income to non-GAAP net income per share:                                        
Employee stock-based compensation effects included in:                                        
  Cost of sales     0.01       0.01       0.01       0.04       0.05  
  Research and development     0.03       0.03       0.03       0.12       0.10  
  Selling, general and administrative     0.02       0.02       0.02       0.08       0.10  
  Tax effect of stock-based compensation     (0.01 )     (0.00 )     (0.01 )     (0.01 )     (0.01 )
Non-GAAP net income per share excluding employee stock-based compensation   $ 0.18     $ 0.18     $ 0.16     $ 0.59     $ 0.62  
                                         
                                         

Contact Information

  • Corporate Headquarters:
    Dr. Henry C. Pao
    President & CEO
    408/222-8888