Exhibit 99.1
SUPERTEX, INC. | PRESS RELEASE |
FOR IMMEDIATE RELEASE | Contact: | Dr. Henry C. Pao |
October 18, 2004 | President & CEO | |
Tel: | 408-222-8888 | |
Fax: | 408-222-4800 | |
Email: | investors@supertex.com |
SUPERTEX REPORTS SECOND FISCAL QUARTER RESULTS
Sunnyvale, CA (October 18, 2004) - Supertex, Inc. (NASDAQ: SUPX) today reported net sales of $15,548,000 for its second fiscal quarter ended October 2, 2004, a 26% increase from the $12,315,000 reported for the same quarter of the prior fiscal year, and a 9% increase compared with the prior quarter of $14,242,000. Net income for the quarter increased 329% to $1,916,000 or $0.15 per share on a diluted basis from $447,000 or $0.03 per share on a diluted basis for the same quarter of the prior fiscal year, and increased 3% from $1,860,000 or $0.14 per share on a diluted basis when compared with the prior quarter.
For the six-month period ended October 2, 2004 compared to the same period of the prior fiscal year, net sales increased 20% from $24,794,000 to $29,790,000, and net income increased 209% from $1,223,000 to $3,776,000.
Dr. Henry C. Pao, President and CEO, commented, "The second quarter sales had a more robust sequential growth of 9%, compared to the prior quarter of 5%. Our net inventories, which underwent a transition from legacy products to recently introduced products during the quarter, decreased by $640,000, and is under careful watch and control. Our gross margin improved to 52% from 50% in the prior fiscal quarter primarily due to increased fab utilization resulting from our sales growth. Cash flow from operations was positive in the quarter. Cash, cash equivalents, and short-term investments increased by $3.6 million during the quarter, primarily from operations. Our research and development expenses in the quarter increased $216,000 from prior quarter to $2.7 million dollars, but remain at 17% of net sales. Our sales and marketing expenses went up about $464,000 from prior quarter to $1.9 million dollars or 12% of net sales due to increased activity, including hosting an alternate-year international sales conference in Las Vegas, attended by over 200 sales and marketing people."
"We expect continued sales growth in the second half of the year fueled mainly by our new products, with most of the growth occurring during our fourth quarter," he added.
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," "ant icipates," and "estimates." An example of a forward-looking statement includes our expectation for continued sales growth during the second half of our fiscal year, fueled mainly by our new products, with most of the growth occurring during our fourth quarter. 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 ratherinvolve a number of risks and uncertainties including, but not limited to,whether we successfully relea se 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, and whether competitors introduce devices at lower prices than our devices causing price erosion as well asother 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. PDT (5:30 p.m. EDT) on October 18, 2004, 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 second 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 800-540-0559 (domestic) or 785-832-1508 (toll, international) before the scheduled start time, and asking to be connected to the Supertex Second Quarter Investor Call. A recorded replay will be available until 11:59 p.m., November 2, 2004 by dialing 800-283-7928 (domestic) or 402-220-0866 (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 atwww.supertex.com.
For further information, contact Henry Pao at Supertex, Inc., 1235 Bordeaux Drive, Sunnyvale, California 94089, 408-222-8888 or visit our Website athttp://www.supertex.com.
SUPERTEX, INC.
CONSOLIDATED INCOME STATEMENT INFORMATION
(unaudited)
Three-months Ended | Six-months Ended | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||
October 2,2004 |
| September 27,2003 |
| October 2,2004 |
| September 27,2003 | |||||||
Net sales | $ | 15,548 | $ | 12,315 | $ | 29,790 | $ | 24,794 | |||||
Cost of sales | 7,431 | 7,523 | 14,500 | 14,812 | |||||||||
Gross profit | 8,117 | 4,792 | 15,290 | 9,982 | |||||||||
Research and development | 2,686 | 2,276 | 5,156 | 4,506 | |||||||||
Selling, general and administrative | 2,949 | 2,203 | 5,351 | 4,593 | |||||||||
Income from operations | 2,482 | 313 | 4,783 | 883 | |||||||||
Interest and other income, net | 377 | 334 | 772 | 888 | |||||||||
Income before income taxes | 2,859 | 647 | 5,555 | 1,771 | |||||||||
Provision for income taxes | 943 | 200 | 1,779 | 548 | |||||||||
Net income | $ | 1,916 | $ | 447 | $ | 3,776 | $ | 1,223 | |||||
Net income per share | |||||||||||||
Basic | $ | 0.15 | $ | 0.04 | $ | 0.29 | $ | 0.10 | |||||
Diluted | $ | 0.15 | $ | 0.03 | $ | 0.29 | $ | 0.09 | |||||
Shares used in per share computation | |||||||||||||
Basic | 12,943 | 12,723 | 12,924 | 12,705 | |||||||||
Diluted | 13,144 | 13,047 | 13,097 | 12,977 |
SUPERTEX, INC.
CONSOLIDATED BALANCE SHEET INFORMATION
(unaudited)
October 2, 2004 | April 3, 2004 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 77,805 | $ | 71,117 | |||
Short term investments | 5,317 | 5,007 | |||||
Accounts receivable, net | 9,812 | 7,667 | |||||
Inventories, net | 11,167 | 12,606 | |||||
Deferred income taxes | 4,989 | 4,989 | |||||
Other current assets | 674 | 642 | |||||
Total current assets | 109,764 | 102,028 | |||||
Property, plant and equipment | 8,770 | 9,731 | |||||
Other assets | 96 | 94 | |||||
Deferred income taxes | 944 | 944 | |||||
TOTAL ASSETS | $ | 119,574 | $ | 112,797 | |||
LIABILITIES | |||||||
Trade accounts payable | $ | 3,101 | $ | 2,354 | |||
Accrued salaries, wages and employee benefits | 8,070 | 7,449 | |||||
Other accrued liabilities | 389 | 481 | |||||
Deferred revenue | 3,250 | 3,254 | |||||
Income taxes payable | 2,175 | 1,485 | |||||
Total current liabilities | 16,985 | 15,023 | |||||
SHAREHOLDERS' EQUITY | |||||||
Common stock | 33,404 | 32,134 | |||||
Retained earnings | 69,185 | 65,640 | |||||
Total shareholders' equity | 102,589 | 97,774 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 119,574 | $ | 112,797 |