EXHIBIT 99.1
SUPERTEX, INC. PRESS RELEASE
FOR IMMEDIATE RELEASE Contact: Dr. Henry C. Pao
October 13, 2003 President & CEO
Tel: 408-222-8888
Fax: 408-222-4800
Email: investors@supertex.com
SUPERTEX REPORTS SECOND FISCAL QUARTER RESULTS
Sunnyvale, CA (October 13, 2003) - Supertex, Inc. (NASDAQ: SUPX) today reported
net sales of $12,315,000 for its second fiscal quarter ended September 30,
2003, a 7% decrease from the $13,220,000 reported for the same quarter of the
prior year and a 1% decrease compared with the prior quarter of $12,479,000.
Net income for the quarter decreased 37% to $447,000 or $0.03 per share on a
diluted basis from $713,000 or $0.06 per share on a diluted basis for the same
quarter of the prior year, and decreased 42% from $776,000 or $0.06 per share
on a diluted basis when compared with the prior quarter.
For the six-month period ended September 30, 2003 versus the same period of the
prior year, net sales decreased 6% from $26,497,000 to $24,794,000, but net
income increased 15% from $1,060,000 to $1,223,000.
Dr. Henry C. Pao, President and CEO commented, "As we forecast at our last
Conference Call, our sales were essentially flat with the prior quarter.
Sales of our backlighting chips to the cell phone industry were flat and we
expect future demand to be at this lower run rate. In our medical segment
there was some price erosion and we expect this to stabilize in the second half
of our fiscal year. Recovery in our telecom segment still remains elusive.
Based on customer projections, which we anticipate will be followed by
confirmed orders, we expect revenue growth during the second half of our
fiscal year, particularly in the fourth quarter. Gross margin for the quarter
was 39%, down 3 % from the prior quarter. During the quarter, we had a planned
inventory reduction of approximately $1.1 million, which we believe is healthy
for the Company going forward, but did affect the gross margin adversely for
the quarter due to further under-utilization of our production capacity. Cash
flow remained positive. We believe we will start to see some production
capacity utilization improvement as demand for our products increases.
R&D spending remains under tight control but at a high level, almost 18% of
sales. We introduced some very exciting new products during the quarter. We
continue to add sales and technical marketing resources to support these new
products. Design-wins and requests for quotations of our new products have
continued at a good rate."
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 demand, pricing, and revenues,
both overall and in specific markets; our anticipation that fab capacity
utilization will improve as product demand increases; and our expectation that
a large portion of our third quarter 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 our
customers experience the demand we anticipate for their products which
incorporate our products, whether competitors introduce products at lower
prices than our products causing price erosion, 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
The Company will host a conference call at 2:30 p.m. PDT (5:30 p.m. EDT) on
October 13, 2003, 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 by dialing 800-223-9488
(domestic) or 785-832-1508 (toll, international) at least 5 minutes before
the scheduled start time, and by asking to be connected to the Supertex
Quarterly Earnings Release Call. A recorded replay will be available until
11:59 p.m., October 27, 2003 by dialing 800-283-4799 (domestic) or
402-220-0860 (toll, international).
The conference call is also available live via the Internet by logging on to
the following URL:
http://www.firstcallevents.com/service/ajwz389642792gf12.html .
If you are unable to participate during the live webcast, 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, Inc.,
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 Six-months Ended
September 30, September 30,
(in thousands, except per share amounts)
2003 2002 2003 2002
Net sales $ 12,315 $ 13,220 $ 24,794 $ 26,497
Cost of sales 7,523 8,102 14,812 16,951
-------- -------- -------- --------
Gross profit 4,792 5,118 9,982 9,546
Research and development 2,276 2,489 4,506 4,807
Selling, general and
administrative 2,203 2,206 4,593 4,041
-------- -------- -------- --------
Income from operations 313 423 883 698
Interest and other income,
net 334 657 888 908
-------- -------- -------- --------
Income before income taxes 647 1,080 1,771 1,606
Provision for income taxes 200 367 548 546
-------- -------- -------- --------
Net income $ 447 $ 713 $ 1,223 $ 1,060
======== ======== ======== ========
Net income per share
Basic $ 0.04 $ 0.06 $ 0.10 $ 0.08
======== ======== ======== ========
Diluted $ 0.03 $ 0.06 $ 0.09 $ 0.08
======== ======== ======== ========
Shares used in per share
computation
Basic 12,723 12,589 12,705 12,582
======== ======== ======== ========
Diluted 13,047 12,640 12,977 12,788
======== ======== ======== ========
SUPERTEX, INC.
CONSOLIDATED BALANCE SHEET INFORMATION
(unaudited)
September 30, 2003 March 31, 2003
(in thousands)
ASSETS
Cash and cash equivalents $ 59,414 $ 60,931
Short term investments 9,518 3,945
Accounts receivable, net 9,176 10,134
Inventories, net 14,325 14,582
Deferred income taxes 4,030 4,030
Other current assets 655 575
----------- -----------
Total current assets 97,118 94,197
Property, plant and equipment 11,042 12,104
Long term investments and other 97 97
Deferred income taxes 2,273 2,273
----------- -----------
TOTAL ASSETS $ 110,530 $ 108,671
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LIABILITIES
Trade accounts payable $ 2,315 $ 3,572
Accrued salaries, wages and employee
benefits 6,560 6,784
Other accrued liabilities 478 485
Deferred revenue 3,017 2,001
Income taxes payable 3,373 3,304
----------- -----------
Total current liabilities 15,743 16,146
----------- -----------
SHAREHOLDERS' EQUITY
Common stock 30,084 29,045
Retained earnings 64,703 63,480
----------- -----------
Total shareholders' equity 94,787 92,525
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 110,530 $ 108,671
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