Exhibit 99.1
Press Release
Contact: | Uzi Sasson | |
Chief Financial Officer | ||
IXYS Corporation | ||
3540 Bassett Street | ||
Santa Clara, California 95054 | ||
(408) 982-0700 |
IXYS Corporation Announces Results For Its First Quarter
Ended June 30, 2006
Ended June 30, 2006
SANTA CLARA, CA. August 3, 2006 — IXYS Corporation (NASDAQ:SYXI) today announced that, for its first fiscal quarter ended June 30, 2006, IXYS reported net revenues of $67.7 million, as compared with net revenues of $63.3 million for the same period in the prior fiscal year.
Gross profit was $21.9 million, or 32.3% of net revenues, for the quarter ended June 30, 2006, as compared to gross profit of $21.1 million, or 33.4% of net revenues, for the same quarter in the prior fiscal year.
Net income for the quarter ended June 30, 2006, was $24.3 million, or $0.68 per diluted share, as compared to $5.1 million, or $0.14 per diluted share, for the same quarter in the prior fiscal year.
The results for the quarter ended June 30, 2006 included a credit adjustment of $36.8 million to record the trial court’s reduction of the award previously made to LoJack Corporation and related tax effects. Excluding the impact of these adjustments, net income for the quarter ended June 30, 2006 would have been $2.6 million, or $0.07 per share, diluted.
“We are pleased to report consecutive sequential revenue growth and sequential increases in our gross margin and gross profit. However our usual operating expenses have increased, in part due to increased R&D investments and compliance expenses. We are experiencing a high demand for our products with record orders taken in the June quarter, creating sequentially again, a record backlog and an increased book-to-bill ratio of 1.18,” said Dr. Nathan Zommer, Chief Executive Officer.
Uzi Sasson, Chief Financial Officer, said, “This is normally the season when we would experience a weakening in our market because of the summer slowdown, especially in Europe. However, this year we expect our strong backlog to counter this trend and we project our revenues for the September 2006 quarter to be between $67 million and $69 million.”
IXYS develops and markets primarily high performance power and RF semiconductors and control ICs that are used in controlling and converting electrical power efficiently in power systems for telecommunication infrastructure, motor drives, medical systems and transportation. IXYS also serves emerging markets with digital and analog ICs that control flat panel displays, medical instruments and telecommunication products.
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 our backlog, book-to-bill ratio and projection of revenues for the September 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 and capacity limits on our ability to manufacture our products, among other things. Further information on other factors that could affect IXYS is detailed and included in IXYS’ Form 10-K for the fiscal year ended March 31, 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 http://www.ixys.com, or by contacting the company directly.
IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
(in thousands)
(unaudited)
June 30, | March 31, | |||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 72,305 | $ | 78,505 | ||||
Accounts receivable, net | 45,640 | 42,774 | ||||||
Other receivables | 2,120 | 1,433 | ||||||
Inventories, net | 68,502 | 60,357 | ||||||
Prepaid expenses and other current assets | 3,957 | 2,688 | ||||||
Deferred income taxes | 10,492 | 25,049 | ||||||
Total current assets | 203,016 | 210,806 | ||||||
Plant and equipment, net | 41,826 | 40,049 | ||||||
Other assets | 12,744 | 12,580 | ||||||
Deferred income taxes | 16,699 | 16,552 | ||||||
Total assets | $ | 274,285 | $ | 279,987 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of capitalized lease obligations | $ | 2,484 | $ | 2,255 | ||||
Current portion of long term loan | 1,090 | 973 | ||||||
Accounts payable | 23,194 | 20,259 | ||||||
Accrued expenses and other current liabilities | 30,583 | 68,504 | ||||||
Total current liabilities | 57,351 | 91,991 | ||||||
Capitalized lease and other long term obligations, net of current portion | 14,704 | 14,447 | ||||||
Pension liabilities | 14,015 | 13,576 | ||||||
Total liabilities | 86,070 | 120,014 | ||||||
Common stock | 347 | 347 | ||||||
Additional paid-in capital | 158,680 | 156,664 | ||||||
Notes receivable from stockholders | (58 | ) | (59 | ) | ||||
Retained earnings | 23,682 | (614 | ) | |||||
Accumulated other comprehensive income | 5,564 | 3,635 | ||||||
Stockholders’ equity | 188,215 | 159,973 | ||||||
Total liabilities and stockholders’ equity | $ | 274,285 | $ | 279,987 | ||||
IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
(in thousands, except per share data)
(unaudited)
Three Months Ended | ||||||||
June 30, 2006 | June 30, 2005 | |||||||
Net revenues | $ | 67,741 | $ | 63,341 | ||||
Cost of goods sold | 45,857 | 42,196 | ||||||
Gross profit | 21,884 | 21,145 | ||||||
Operating expenses: | ||||||||
Research, development and engineering | 5,108 | 4,156 | ||||||
Selling, general and administrative | 12,056 | 9,257 | ||||||
Litigation provision | (36,827 | ) | — | |||||
Total operating expenses | (19,663 | ) | 13,413 | |||||
Operating income | 41,547 | 7,732 | ||||||
Other income (expense), net | (844 | ) | 425 | |||||
Income before income tax provision | 40,703 | 8,157 | ||||||
Provision for income tax expense | 16,407 | 3,018 | ||||||
Net income | $ | 24,296 | $ | 5,139 | ||||
Net income per share — basic | $ | 0.71 | $ | 0.15 | ||||
Weighted average shares used in per share calculation — basic | 34,172 | 33,416 | ||||||
Net income per share — diluted | $ | 0.68 | $ | 0.14 | ||||
Weighted average shares used in per share calculation — diluted | 35,575 | 35,985 | ||||||
GAAP reconciliation to non-GAAP
(In thousands, except per share amounts)
(In thousands, except per share amounts)
Quarter Ended | ||||||||
June 30, 2006 | June 30, 2005 | |||||||
Net income, as reported (GAAP) | $ | 24,296 | $ | 5,139 | ||||
Adjustments to GAAP net income: | ||||||||
Litigation provision and related tax effects | (21,742 | ) | — | |||||
Non-GAAP net income | $ | 2,554 | $ | 5,139 | ||||
Net income per share-basic, as reported (GAAP) | $ | 0.71 | $ | 0.15 | ||||
Adjustments to GAAP net income per share-basic: | ||||||||
Litigation provision and related tax effects | (0.64 | ) | — | |||||
Net income per share-basic, (non-GAAP) | $ | 0.07 | $ | 0.15 | ||||
Net income per share-diluted, as reported (GAAP) | $ | 0.68 | $ | 0.14 | ||||
Adjustments to GAAP net income per share-diluted: | ||||||||
Litigation provision and related tax effects | (0.61 | ) | — | |||||
Net income per share-diluted, (non-GAAP) | $ | 0.07 | $ | 0.14 | ||||
Weighted average shares used in per share calculation | ||||||||
Basic | 34,172 | 33,416 | ||||||
Dilutive weighted average shares | 1,403 | 2,569 | ||||||
Diluted | 35,575 | 35,985 |