EXHIBIT 99.1
SUPERTEX, INC. PRESS RELEASE
FOR IMMEDIATE RELEASE Contact: Dr. Henry C. Pao
July 14, 2003 President & CEO
Tel: 408-222-8888
Fax: 408-222-4800
Email: investors@supertex.com
SUPERTEX REPORTS FIRST FISCAL QUARTER RESULTS
Sunnyvale, CA (July 14, 2003) - Supertex, Inc. (NASDAQ: SUPX) reported that
for the first fiscal quarter ended June 28, 2003, net sales decreased 6%
from $13,277,000 to $12,479,000 compared to the same quarter of the prior
year, and decreased 14% from the prior quarter of $14,530,000. Net income
increased 124% to $776,000 or $0.06 per share from $347,000 or $0.03 per
share on a diluted basis from the year ago quarter, but decreased 29% from
$1,098,000 or $0.09 per share on a diluted basis in the prior quarter.
Dr. Henry C. Pao, President & CEO, commented, "We did not make our sales
plan for the quarter due to several unexpected situations. Two major
cellular phone product customers experienced reduced sales of their handset
products and therefore they purchased less of our product than forecast,
which they attributed in part to severe acute respiratory syndrome (SARS).
We do not expect their business to pick up for the near future and therefore
expect their demand for our products to continue at its reduced level. In
addition, our largest medical product customer moved its third party assembly
offshore, resulting in a hiatus in its demand for our components due to
qualification requirements on initial builds. We expect sales to this
customer to resume this summer to the previous run rates. Lastly, the
needed financing of a large consumer imaging product customer was delayed
until the end of the quarter, which caused the customer to purchase less of
our products in the quarter. We expect shipments to resume to this customer
at the former rates in the coming months as well. Our inventory increased
$803,000, primarily because some of the anticipated turns business did not
materialize. Despite our sales shortfall, gross margin remained at 42%
compared to the prior quarter, and improved from 33% year-over-year despite
the low production capacity utilization. Cash, cash equivalents and
short-term investments increased by $3.1 million during the quarter. Although
design-wins of our new products have continued at a good rate, our ability to
forecast the actual demand for our products has been hampered by the weak
general economy. As we expect a large portion of our business to remain
turns business for the second fiscal quarter, it is difficult to forecast any
significant improvement in our revenues at this time. As a result, although
we expect our revenue for the second fiscal quarter to be in the range of our
revenue for the last several quarters, we still believe that our second
fiscal half will show sequential growth. This optimism is based on customer
projections especially for our newer products as our design-win activities
have been strong.
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 include our expectations as to our revenues in the next
quarter and the second half of this fiscal year and our sales to various
particular customers during the near term and our expectation that a large
portion of our business will continue to be turns business. 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 customers
implement our products in their new products, whether demand materializes for
our customers' new products and continues for their current products, whether
we timely release into production our planned new products and the demand for
such newly-released products, whether there is any price erosion and whether
competitors attempt to second source our products, and whether our customers
continue to have difficulty forecasting demand for their products 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.
These forward-looking statements are based on our goals and objectives and
our assumptions about, and assessment of, the future and may or may not prove
true. They speak only as to the date of this release, and we undertake no
obligation to publicly release updates or revisions to these statements.
Conference Call Details
We will host a conference call at 2:30 p.m. PDT (5:30 p.m. EDT) on July 14,
2003, following this earnings release. President and CEO, Dr. Henry C. Pao
and Executive Vice President, Richard E. Siegel will present an overview of
the first fiscal quarter 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 800-223-9488 (domestic) or 785-832-1508 (toll, international) at
least 5 minutes before the scheduled start time, and ask to be connected to
the Supertex Quarterly Earnings Release Call. A recorded replay will be
available until 11:59 p.m., July 28, 2003 by dialing 800-283-8486 (domestic)
or 402-220-0869 (toll, international).
The conference call is also available live via the Internet by logging on to
the following URL:
http://www.firstcallevents.com/service/ajwz384621622gf12.html.
If you are unable to participate during the live web-cast, the call will be
archived at www.supertex.com.
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 at www.supertex.com.
For further information, contact Dr. Henry C. Pao at Supertex, Incorporated,
1235 Bordeaux Drive, Sunnyvale, California 94089, (408) 222-8888 or visit our
Website at http://www.supertex.com
SUPERTEX, INC.
CONSOLIDATED INCOME STATEMENT INFORMATION
(unaudited)
Three-months Ended
June 30,
(in thousands, except per share amounts)
2003 2002
---- ----
Net sales $ 12,479 $ 13,277
Cost of sales 7,289 8,849
--------- ---------
Gross profit 5,190 4,428
Research and development 2,230 2,318
Selling, general and administrative 2,390 1,835
--------- ---------
Income from operations 570 275
Interest and other income, net 554 251
--------- ---------
Income before income taxes 1,124 526
Provision for income taxes 348 179
--------- ---------
Net income $ 776 $ 347
--------- ---------
Net income per share
Basic $ 0.06 $ 0.03
--------- ---------
Diluted $ 0.06 $ 0.03
--------- ---------
Shares used in per share computation
Basic 12,686 12,575
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Diluted 12,907 12,935
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SUPERTEX, INC.
CONSOLIDATED BALANCE SHEET INFORMATION
(unaudited)
June 30, 2003 March 31, 2003
(in thousands)
ASSETS
Cash and cash equivalents $ 58,695 $ 60,931
Short term investments 9,314 3,945
Accounts receivable, net 6,981 10,134
Inventories, net 15,385 14,582
Deferred income taxes 4,030 4,030
Other current assets 474 575
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Total current assets 94,879 94,197
Property, plant and equipment 11,565 12,104
Long term investments 97 97
Deferred income taxes 2,273 2,273
--------- ---------
TOTAL ASSETS $ 108,814 $ 108,671
LIABILITIES
Trade accounts payable and accrued liabilities $ 2,598 $ 3,572
Accrued salaries, wages and employee benefits 6,522 6,784
Other accrued liabilities 412 485
Deferred revenue 2,245 2,001
Income taxes payable 3,171 3,304
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Total current liabilities 14,948 16,146
SHAREHOLDERS' EQUITY
Common stock 29,610 29,045
Retained earnings 64,256 63,480
--------- ---------
Total shareholders' equity 93,866 92,525
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 108,814 $ 108,671