SOURCE: Supertex

Supertex

January 22, 2013 16:05 ET

Supertex Reports Third Fiscal Quarter Results

SUNNYVALE, CA--(Marketwire - Jan 22, 2013) - Supertex, Inc. (NASDAQ: SUPX) today reported financial results for the third fiscal quarter ended December 29, 2012. Net sales for the third fiscal quarter were $14,373,000, a 10% decrease compared to the prior quarter of $15,919,000 and a 2% increase compared to $14,066,000 in the same quarter last year. On a GAAP basis, net income in the third fiscal quarter was $1,431,000 or $0.12 per diluted share, as compared with $690,000 or $0.06 per diluted share in the prior fiscal quarter, and $96,000 or $0.01 per diluted share in the same quarter of the prior fiscal year.

For the nine months ended December 29, 2012, net sales were $46,351,000 compared to $49,084,000 for the same period of the prior fiscal year, and on a GAAP basis, net income was $2,718,000, or $0.23 per diluted share, as compared with $3,476,000, or $0.28 per diluted share, in the same period of the prior fiscal year.

Non-GAAP earnings per diluted share for the third quarter of fiscal 2013 were $0.18 excluding pre-tax employee stock-based compensation of $648,000, compared with $0.12 in the prior quarter, excluding pre-tax employee stock-based compensation of $769,000, and $0.07 in the same quarter of the prior fiscal year, excluding pretax employee stock-based compensation of $821,000. For the nine months ended December 29, 2012, non-GAAP earnings per diluted share were $0.41, excluding pre-tax employee stock-based compensation of $2,162,000, as compared to $0.45 for the same period of the prior fiscal year, excluding pre-tax employee stock-based compensation of $2,243,000.

"Sales in our fiscal third quarter were adversely affected by a large order push-out by our high-end computer monitor customer and a delay by our major printer head driver customer in the ramp-up of production of its new product, as well as a normal seasonality dip in our medical ultrasound products," stated Dr. Henry C. Pao, President and CEO. "In LED backlighting our new driver, capable of +/- 2% current accuracy, which is best in class, began ramping up production by a major TV OEM. In LED general lighting our driver for fluorescent tube replacement began shipping in higher volume, and design activities are robust. For our fourth fiscal quarter ending March 30, 2013, we are forecasting our overall sales to be flat to down 3% sequentially, primarily due to expected seasonal decline in medical ultrasound sales as our customers would normally balance their inventories this quarter. This is expected to be partially offset by increased sales of our new LED backlight driver for TVs, the production ramp-up by our printer head driver customer of its new product, and the resumption of deliveries for our high-end computer monitor customer. We have several new product launches planned for the March quarter including two high voltage analog switches and two high voltage pulsers for medical ultrasound, and two LED drivers for general lighting and backlighting. Sales are growing of several of our recently introduced products which had been well received by customers."

Dr. Pao commented further, "Gross margin for the third fiscal quarter improved by five percentage points from the prior quarter to 51%, reflecting the benefit of higher wafer fab capacity utilization during the previous two quarters. Operating expense also improved from the prior quarter, primarily due to a lesser increase in the market value of our nonqualified deferred compensation plan, which has no impact on our overall net income due to a corresponding offset in other income. We recorded a tax benefit of $0.3 million in the third fiscal quarter versus a tax expense of $0.3 million in the prior quarter. During the quarter, cash generated from operating activities was $4.8 million. We paid a $1.00 per share special dividend totaling $11.5 million, and we repurchased approximately 95,000 shares of our stock for $1.7 million. Since we announced the stock repurchase program at the end of January 2011, we have bought back approximately 1,671,000 shares for a total of $32.1 million through December 29th."

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 anticipation that in the fourth fiscal quarter sales will be flat to down 3% sequentially due to an expected seasonal sales dip in medical ultrasound products partially offset by increased sales of LED and printer head drivers, our belief that sequential reductions in revenue from our medical ultrasound products were due to seasonality, and our expectation of launching several significant new products in the fourth fiscal quarter.

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, 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 January 22, 2013, following the earnings release. President and CEO, Dr. Henry C. Pao, and CFO, Phil Kagel, will present an overview of the third fiscal quarter 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, February 21, 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 operation 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)  
             
    December 29, 2012     March 31, 2012  
    (in thousands)  
ASSETS                
Cash and cash equivalents   $ 16,844     $ 19,860  
Short term investments     120,034       111,137  
Trade accounts receivable, net     5,743       8,021  
Inventories     11,427       14,438  
Deferred tax assets     7,450       7,529  
Prepaid income taxes     3,231       3,032  
Prepaid expenses and other current assets     5,123       6,786  
  Total current assets     169,852       170,803  
Long term investments     13,500       25,900  
Property, plant and equipment, net     4,416       4,941  
Other assets     818       621  
Deferred tax assets, noncurrent     5,291       5,375  
TOTAL ASSETS   $ 193,877     $ 207,640  
                 
LIABILITIES                
Trade accounts payable   $ 2,916     $ 1,994  
Accrued salaries and employee benefits     12,688       12,434  
Other accrued liabilities     818       615  
Deferred revenue     2,069       2,560  
Income taxes payable     90       23  
  Total current liabilities     18,581       17,626  
Income taxes payable, noncurrent     3,702       4,161  
Deferred tax liabilities, noncurrent     127       -  
Other accrued liabilities, noncurrent     571       561  
  Total liabilities     22,981       22,348  
                 
                 
SHAREHOLDERS' EQUITY                
Common stock     67,696       68,031  
Accumulated other comprehensive loss     (808 )     (1,345 )
Retained earnings     104,008       118,606  
  Total shareholders' equity     170,896       185,292  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 193,877     $ 207,640  
                 
 
 
SUPERTEX, INC.
CONSOLIDATED INCOME STATEMENT INFORMATION
(unaudited)
                         
    Three Months Ended     Nine Months Ended
    (in thousands, except per share amounts)
    December 29, 2012     September 29, 2012   December 31, 2011     December 29, 2012   December 31, 2011
Net sales   $ 14,373     $ 15,919   $ 14,066     $ 46,351   $ 49,084
Cost of sales(1)     7,057       8,571     8,708       24,193     26,132
  Gross profit     7,316       7,348     5,358       22,158     22,952
Research and development(1)     3,440       3,556     3,480       10,482     10,514
Selling, general and administrative(1)     3,113       3,449     3,269       9,946     9,226
  Income (loss) from operations     763       343     (1,391 )     1,730     3,212
Interest and other income, net     412       616     784       1,230     567
  Income (loss) before income taxes     1,175       959     (607 )     2,960     3,779
(Benefit from) Provision for income taxes     (256 )     269     (703 )     242     303
  Net income   $ 1,431     $ 690   $ 96     $ 2,718   $ 3,476
Net income per share:                                  
  Basic   $ 0.12     $ 0.06   $ 0.01     $ 0.23   $ 0.28
  Diluted   $ 0.12     $ 0.06   $ 0.01     $ 0.23   $ 0.28
Shares used in per share computation:                                  
  Basic     11,567       11,779     12,063       11,782     12,439
  Diluted     11,568       11,782     12,066       11,783     12,450
                                   
                                   
                                   
(1) Includes amortization of employee stock-based compensation as follows:
 
  Cost of sales   $ 108     $ 130   $ 161     $ 372   $ 434
  Research and development   $ 318     $ 335   $ 352     $ 1,002   $ 928
  Selling, general and administrative   $ 222     $ 304   $ 308     $ 788   $ 881
                                     
   
   
SUPERTEX, INC.  
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS  
(unaudited)  
   
  Three Months Ended     Nine Months Ended  
  (in thousands, except per share amounts)  
  December 29, 2012     September 29, 2012     December 31, 2011     December 29, 2012     December 31, 2011  
GAAP net income $ 1,431     $ 690     $ 96     $ 2,718     $ 3,476  
Adjustment for stock-based compensation included in:                                      
  Cost of sales   108       130       161       372       434  
  Research and development   318       335       352       1,002       928  
  Selling, general and administrative   222       304       308       788       881  
    Subtotal   648       769       821       2,162       2,243  
Tax effect of stock-based compensation   (11 )     (18 )     (19 )     (47 )     (67 )
Non-GAAP net income excluding employee stock-based compensation $ 2,068     $ 1,441     $ 898     $ 4,833     $ 5,652  
                                       
Non-GAAP net income per share:                                      
  Basic $ 0.18     $ 0.12     $ 0.07     $ 0.41     $ 0.45  
  Diluted $ 0.18     $ 0.12     $ 0.07     $ 0.41     $ 0.45  
Shares used in per share computation:                                      
  Basic   11,567       11,779       12,063       11,782       12,439  
  Diluted   11,568       11,782       12,066       11,783       12,450  
                                         
 
   
SUPERTEX, INC.  
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE  
(unaudited)  
   
  Three Months Ended     Nine Months Ended  
  (in thousands, except per share amounts)  
  December 29, 2012     September 29, 2012     December 31, 2011     December 29, 2012     December 31, 2011  
Shares used in per share computation: Diluted   11,568       11,782       12,066       11,783       12,450  
                                       
  DILUTED:                                      
GAAP net income per share $ 0.12     $ 0.06     $ 0.01     $ 0.23     $ 0.28  
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       0.03       0.03  
  Research and development   0.03       0.03       0.03       0.08       0.08  
  Selling, general and administrative   0.02       0.02       0.02       0.07       0.07  
  Provision for income taxes   (0.00 )     (0.00 )     (0.00 )     (0.00 )     (0.01 )
Non-GAAP net income per share excluding employee stock-based compensation $ 0.18     $ 0.12     $ 0.07     $ 0.41     $ 0.45  
                                       

Contact Information

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