Exhibit 99.1
IXYS Corporation Announces Record Quarter and Fiscal Year Revenues
March Quarter Highlights:
- Record revenues
- Sequential gross margin improvement
- Net income rose sequentially from last quarter, up by 356%
- IXYS repurchased 77,000 shares for $507,000
MILPITAS, Calif. & BIEL, Switzerland--(BUSINESS WIRE)--IXYS Corporation (NASDAQ:IXYS) today reported record net revenues of $79.3 million for the fourth fiscal quarter ended March 31, 2008, as compared with net revenues of $74.0 million for the same period in the prior fiscal year.
A technology rich semiconductor company, IXYS develops power semiconductors, integrated circuits and RF & systems that are used in a wide range of industrial, medical, telecommunication, transportation and consumer applications. Within the renewable energy industry, IXYS supplies semiconductor products that switch, control and convert electrical energy into the electrical power grid, mainly for windmill and solar systems.
Fiscal Year Financial Highlights:
- Record revenues
- Strong backlog of $109 million -- $4 million higher than backlog at last fiscal year end
- IXYS repurchased 1.8 million IXYS shares for $15.1 million
For the fiscal year ended March 31, 2008, IXYS reported record net revenues of $304.5 million, as compared with net revenues of $285.9 million for the prior fiscal year.
Gross profit was $24.0 million, or 30.3% of net revenues for the quarter ended March 31, 2008, as compared to gross profit of $17.9 million, or 24.1% of net revenues for the same quarter in the prior fiscal year. Importantly, gross profit percentage improved quarter over quarter sequentially by 190 basis points.
“This quarter’s profit growth was a marked improvement over the third quarter; much of this strength can be attributed to the sale of higher-margin products in the U.S. and Europe,” commented Dr. Nathan Zommer, CEO and President of IXYS.
Gross profit for the fiscal year ended March 31, 2008 was $87.1 million, or 28.6% of net revenues as compared to a gross profit of $84.3 million, or 29.5% of net revenues in the prior fiscal year.
Net income for the quarter ended March 31, 2008, was $10.1 million on a GAAP basis, or $0.32 per diluted share ($5.5 million, $0.17 per diluted share, non-GAAP), as compared to a net income of $2.2 million on a GAAP basis, or $0.07 per diluted share ($1.7 million, $0.05 per diluted share, non-GAAP), for the same quarter in the prior fiscal year.
Net income for the fiscal year ended March 31, 2008 was $23.3 million on a GAAP basis, or $0.71 per diluted share ($15.1 million, $0.46 per diluted share, non-GAAP), as compared to net income of $30.2 million on a GAAP basis, or $0.87 per diluted share ($12.6 million, $0.36 per diluted share, non-GAAP) for the prior fiscal year. GAAP net income includes legal charge reversals attributable to favorable outcomes in connection with the International Rectifier Corporation and LoJack litigations.
“These financial results demonstrate again the high quality of our revenues and the robust nature of our business model. Even in challenging economic conditions, especially present in the semiconductor industry, IXYS continues to grow revenues and profits. In addition, IXYS has won legal battles against LoJack and International Rectifier. For the second time in the Federal Circuit Court of Appeals, we have prevailed in the patent dispute begun by International Rectifier. This again proves our strong proprietary position and technical leadership in the power MOSFET and IGBT marketplace. With the court’s ruling in our favor, we have removed one of the clouds that affected IXYS and its shareholders. We thus expect to gain more market share as a technology leader with improved financial results and accelerated new product introductions in traditional and renewable energy markets,” said Dr. Zommer CEO of IXYS.
The company repurchased approximately 77,000 IXYS shares for $507,000 during the March 2008 quarter, and approximately 1.8 million IXYS shares for $15.1 million in the fiscal year ended March 2008. As of March 31, 2008, about 139,000 shares remained available for repurchase under the existing repurchase authorization.
“We project revenues to be relatively flat for the June 2008 quarter as compared to our record March quarter,” stated Uzi Sasson, COO and CFO of IXYS Corporation. “IXYS is investing in R&D to address the growing demand for power management and renewable energy resources. As these products gain adoption, along with our continued strong presence in traditional markets, revenues and margins should increase.”
About IXYS Corporation
Since its founding in Silicon Valley, IXYS Corporation has been developing technology-driven products to improve power conversion efficiency, generate clean energy, improve automation, and provide advance products for the transportation, medical and telecommunication industries. IXYS (NASDAQ: IXYS) is a worldwide pioneer in the development of power semiconductors and high voltage integrated circuits (HVIC) that are key to reducing the world’s dependence on fossil fuels.
Diminishing natural resources, demand for cheap energy and environmental directives for energy efficiency represent a significant challenge. IXYS’ power semiconductors and mixed-signal integrated circuits (IC) play a vital role in reducing energy costs and consumption by optimizing the energy efficiency of everyday products. With a customer base of over 2,000 telecommunications, transportation, industrial, medical and consumer companies, IXYS is a worldwide provider of semiconductors.
Additional information may be obtained by visiting IXYS’ website at http://www.ixys.com, or by contacting the company directly.
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 provisions related to litigation, 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 backlog, product lines, technological leadership, market share, future financial results, the demand for power management and renewable energy resources, product adoption, new product introductions, increasing revenues and margins, product developments, R&D investments and projection of revenues for the June 2008 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, increased competition, capacity limits on our ability to manufacture our products, cash flow difficulties, unanticipated technological hurdles, adverse changes in customer demand and increasing product costs, among other things. Further information on other factors that could affect IXYS is detailed and included in IXYS’ Form 10-Q for the fiscal quarter ended December 31, 2007, 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.
| IXYS CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| March 31, | March 31, | |||||||
| 2008 | 2007 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 57,234 | $ | 54,196 | ||||
| Accounts receivable, net | 50,270 | 42,519 | ||||||
| Other receivables | 2,282 | 2,006 | ||||||
| Inventories, net | 86,516 | 85,965 | ||||||
| Prepaid expenses and other current assets | 4,133 | 1,262 | ||||||
| Deferred income taxes | 7,578 | 14,345 | ||||||
| Total current assets | 208,013 | 200,293 | ||||||
| Property, plant and equipment, net | 58,033 | 48,741 | ||||||
| Other assets | 14,238 | 11,780 | ||||||
| Deferred income taxes | 13,546 | 12,827 | ||||||
| Total assets | $ | 293,830 | $ | 273,641 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of capitalized lease obligations | $ | 4,890 | $ | 3,686 | ||||
| Current portion of notes payable to bank | 1,286 | 1,012 | ||||||
| Accounts payable | 21,489 | 19,926 | ||||||
| Accrued expenses and other current liabilities | 17,956 | 33,261 | ||||||
| Total current liabilities | 45,621 | 57,885 | ||||||
| Capitalized lease and other long term obligations, net of current portion | 30,752 | 17,772 | ||||||
| Pension liabilities | 17,228 | 16,875 | ||||||
| Total liabilities | 93,601 | 92,532 | ||||||
| Common stock | 354 | 350 | ||||||
| Additional paid-in capital | 132,125 | 143,038 | ||||||
| Retained earnings | 50,494 | 29,605 | ||||||
| Accumulated other comprehensive income | 17,256 | 8,116 | ||||||
| Stockholders' equity | 200,229 | 181,109 | ||||||
| Total liabilities and stockholders' equity | $ | 293,830 | $ | 273,641 | ||||
| IXYS CORPORATION | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | Fiscal Year Ended | ||||||||||||||
| March 31 | March 31 | March 31 | March 31 | ||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||||
| Net revenues | $ | 79,254 | $ | 74,018 | $ | 304,456 | $ | 285,908 | |||||||
| Cost of goods sold | 55,278 | 56,168 | 217,332 | 201,577 | |||||||||||
| Gross profit | 23,976 | 17,850 | 87,124 | 84,331 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research, development and engineering | 5,575 | 5,186 | 21,124 | 20,105 | |||||||||||
| Selling, general and administrative | 10,633 | 10,972 | 42,093 | 44,134 | |||||||||||
| Litigation provision | (7,062 | ) | 303 | (12,957 | ) | (29,435 | ) | ||||||||
| Total operating expenses | 9,146 | 16,461 | 50,260 | 34,804 | |||||||||||
| Operating income | 14,830 | 1,389 | 36,864 | 49,527 | |||||||||||
| Other income (expense), net | (974 | ) | 219 | (2,885 | ) | (1,288 | ) | ||||||||
| Income before income tax provision | 13,856 | 1,608 | 33,979 | 48,239 | |||||||||||
| Provision (benefit) for income tax expense | 3,737 | (633 | ) | 10,690 | 18,020 | ||||||||||
| Net income | $ | 10,119 | $ | 2,241 | $ | 23,289 | $ | 30,219 | |||||||
| Net income per share - basic | $ | 0.33 | $ | 0.07 | $ | 0.73 | $ | 0.90 | |||||||
| Weighted average shares used in per share calculation - basic | 31,083 | 32,659 | 31,906 | 33,505 | |||||||||||
| Net income per share - diluted | $ | 0.32 | $ | 0.07 | $ | 0.71 | $ | 0.87 | |||||||
| Weighted average shares used in per share calculation - diluted | 31,842 | 33,923 | 33,031 | 34,784 | |||||||||||
| GAAP reconciliation to non-GAAP | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| Quarter Ended | Twelve Months Ended | |||||||||||||||
| March 31, 2008 | March 31, 2007 | March 31, 2008 | March 31, 2007 | |||||||||||||
| Net income, as reported (GAAP) | $ | 10,119 | $ | 2,241 | $ | 23,289 | $ | 30,219 | ||||||||
| Adjustments to GAAP net income: | ||||||||||||||||
| Litigation provision and related tax effects | (4,601 | ) | (589 | ) | (8,153 | ) | (17,620 | ) | ||||||||
| Non-GAAP net income | $ | 5,518 | $ | 1,652 | $ | 15,136 | $ | 12,599 | ||||||||
| Net income per share-basic, as reported (GAAP) | $ | 0.33 | $ | 0.07 | $ | 0.73 | $ | 0.90 | ||||||||
| Adjustments to GAAP net income per share-basic: | ||||||||||||||||
| Litigation provision and related tax effects | (0.15 | ) | (0.02 | ) | (0.26 | ) | (0.53 | ) | ||||||||
| Net income per share-basic, (non-GAAP) | $ | 0.18 | $ | 0.05 | $ | 0.47 | $ | 0.37 | ||||||||
| Net income per share-diluted, as reported (GAAP) | $ | 0.32 | $ | 0.07 | $ | 0.71 | $ | 0.87 | ||||||||
| Adjustments to GAAP net income per share-diluted: | ||||||||||||||||
| Litigation provision and related tax effects | (0.15 | ) | (0.02 | ) | (0.25 | ) | (0.51 | ) | ||||||||
| Net income per share-diluted, (non-GAAP) | $ | 0.17 | $ | 0.05 | $ | 0.46 | $ | 0.36 | ||||||||
| Weighted average shares used in per share calculation | ||||||||||||||||
| Basic | 31,083 | 32,659 | 31,906 | 33,505 | ||||||||||||
| Dilutive weighted average shares | 759 | 1,264 | 1,125 | 1,279 | ||||||||||||
| Diluted | 31,842 | 33,923 | 33,031 | 34,784 | ||||||||||||
CONTACT:
IXYS Corporation
Uzi Sasson, COO & CFO, 408-457-9000