EXHIBIT 99.1
SUPERTEX, INC. PRESS RELEASE
FOR IMMEDIATE RELEASE Contact: Dr. Henry C. Pao
May 03, 2004 President & CEO
Tel: 408-222-8888
Fax: 408-222-4800
Email: investors@supertex.com
SUPERTEX REPORTS FOURTH FISCAL QUARTER
AND FISCAL YEAR-END RESULTS
Sunnyvale, CA (May 03, 2004) - Supertex, Inc. (NASDAQ: SUPX) reported that
for the fourth fiscal quarter ended March 31, 2004, net sales decreased 6%
to $13,589,000 from $14,530,000 for the same quarter in the prior fiscal
year, but increased 4% sequentially from the prior quarter of $13,010,000.
Net income for the quarter decreased 74% to $290,000 or $0.02 per share on
a diluted basis from $1,098,000 or $0.09 per share for the same quarter of
the prior fiscal year and decreased 55% sequentially compared to $647,000
or $0.05 per share for the prior quarter.
For the fiscal year ended March 31, 2004, net sales decreased 6% to
$51,394,000 from $54,915,000 in the prior year, while net income decreased
24% to $2,159,000 from $2,855,000 in the prior year.
Dr. Henry C. Pao, President and CEO, commented, "The fourth quarter of our
fiscal year 2004 was characterized by a modest sequential sales growth, in
spite of the turns business not being as robust as in the same period last
year. According to plan, our sales underwent a product mix change and we
reduced our inventory, primarily through write-down, based on this product
mix change. Throughout the year we continued to reduce inventories of our
older products while planning for tactical inventory of new products with
a total net reduction for the year of $2.0 million to a year-end inventory
of $12.6 million. Gross margin dropped to 38% compared to 41% in the prior
quarter, and improved to 40% from 38% year-over-year despite the continued
low production capacity utilization. Cash flow was positive in the quarter.
Cash, cash equivalents and short-term investments increased by $11.2 million
during the year. Our Research and Development expenses in the quarter went
up to $2.64 million dollars or 19.4% of sales. Our sales and marketing
expenses increased 14.1% from the prior quarter due to increased activities."
He added, "Pre-production orders were received in all our emerging markets of
Power-over-Ethernet (POE) ICs, hotswap ICs, LED driver ICs, and high voltage
amplifier arrays for Optical-to-Optical telecom applications and our new
telecom ringer IC. These 'second stage' orders are encouraging, and combined
with a positive book-to-bill ratio, we are bullish on both our top and bottom
line growth for our fiscal year 2005, starting with our first fiscal quarter.
We have substantial production capacity in wafer fabrication and test in place
to easily handle the projected increase in sales."
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 optimism about our continued revenue and earnings
growth during fiscal year. 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,
including products currently in the pre-production stage, which incorporate our
products and whether competitors introduce products at lower prices than our
products causing price erosion, 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
May 03, 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 fourth fiscal quarter and fiscal 2004 year end
financial results, discuss current business conditions and then respond to
questions.
The call is available live to listen or ask questions by dialing 800-540-0559
(domestic) or 785-832-1508 (toll, international) and ask to be connected to the
Supertex Quarterly Earnings Release Call. A recorded replay will be available
until 11:59 p.m., May 17, 2004 by dialing 888-274-8336 (domestic) or
402-220-2328 (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 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 Fiscal Year Ended
March 31, March 31,
(in thousands, except per share amounts)
2004 2003 2004 2003
Net sales $ 13,589 $ 14,530 $ 51,394 $ 54,915
Cost of sales 8,423 8,494 30,938 34,103
--------- --------- --------- ---------
Gross profit 5,166 6,036 20,456 20,812
Research and development 2,645 2,366 9,570 9,338
Selling, general and
administrative 2,617 2,316 9,760 8,722
--------- --------- --------- ---------
Income from operations (96) 1,354 1,126 2,752
Interest and other income,
net 516 260 2,003 1,446
--------- --------- --------- ---------
Income before income taxes 420 1,614 3,129 4,198
Provision for income taxes 130 516 970 1,343
========= ========= ========= =========
Net income $ 290 $ 1,098 $ 2,159 $ 2,855
Net income per share
Basic $ 0.02 $ 0.09 $ 0.17 $ 0.23
Diluted $ 0.02 $ 0.09 $ 0.17 $ 0.22
Shares used in per share
computation
Basic 12,848 12,620 12,758 12,598
Diluted 13,163 12,770 13,051 12,757
SUPERTEX, INC.
CONSOLIDATED BALANCE SHEET INFORMATION
(unaudited)
March 31, 2004 March 31, 2003
(in thousands)
ASSETS
Cash and cash equivalents $ 71,117 $ 60,931
Short term investments 5,007 3,945
Accounts receivable, net 7,667 10,134
Inventories, net 12,606 14,582
Deferred income taxes 4,989 4,030
Other current assets 642 575
---------- ----------
Total current assets 102,028 94,197
Property, plant and equipment 9,731 12,104
Other assets 94 97
Deferred income taxes 944 2,273
---------- ----------
TOTAL ASSETS $ 112,797 $ 108,671
========== ==========
LIABILITIES
Trade accounts payable $ 2,354 $ 3,572
Accrued salaries, wages and
employee benefits 7,449 6,784
Other accrued liabilities 481 485
Deferred revenue 3,254 2,001
Income taxes payable 1,485 3,304
---------- ----------
Total current liabilities 15,023 16,146
---------- ----------
SHAREHOLDERS' EQUITY
Common stock 32,134 29,045
Retained earnings 65,640 63,480
---------- ----------
Total shareholders' equity 97,774 92,525
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 112,797 $ 108,671
========== ==========