EXHIBIT 99.1
SUPERTEX, INC. PRESS RELEASE
FOR IMMEDIATE RELEASE Contact: Richard Siegel
July 19, 2004 Executive Vice President
Tel: 408-222-8888
Fax: 408-222-4800
Email: investors@supertex.com
SUPERTEX REPORTS FIRST FISCAL QUARTER RESULTS
Sunnyvale, CA (July 19, 2004) - Supertex, Inc. (NASDAQ: SUPX) reported that
for the first fiscal quarter ended June 30, 2004, net sales increased 14% to
$14,242,000 from $12,479,000 for the same quarter in the prior fiscal year,
and increased 5% sequentially from the prior quarter of $13,589,000. Net
income for the quarter increased to $1,860,000 or $0.14 per share on a
diluted basis from $776,000 or $0.06 per share for the same quarter of the
prior fiscal year and $290,000 or $0.02 per share for the prior quarter.
Dr. Henry C. Pao, President and CEO, commented, "The first quarter of our
fiscal year 2005 was characterized by a modest sequential growth of 5% and
improved net profit. Our sales underwent a favorable product mix change
primarily due to improvement in sales to the medical ultrasound market and
to the non-impact printer market. Our inventory, based on the product mix
change, is under control. Our gross margin improved to 50% from 38% in the
prior fiscal quarter due to favorable product mix, lower depreciation
expenses, and rigorous cost reduction measures. Depreciation expense in
fiscal 2005 was lower due to declining capital spending in the last two
years, as we have completed the planned major upgrades to our wafer
fabrication facility and test operations, started in fiscal 2002. In fiscal
2004, we successfully completed qualification of our two new in-house ion
implanters that resulted in significant reduction of our outside implantation
service costs. Cash flow from operations was positive in the quarter. Cash,
cash equivalents, and short-term investments increased by $3.4 million during
the quarter even with some stock buy-back. Our research and development
expenses in the quarter were $2.5 million dollars or 17% of sales. Our sales
and marketing expenses were $1.5 million dollars or 10%."
He added, "We have seen continued design and order activity in our emerging
markets of hotswap ICs, LED driver ICs, and high voltage amplifier arrays for
Optical-to-Optical telecom applications and our new telecom ringer ICs. This
activity is encouraging, and combined with a positive book-to-bill ratio, we
are optimistic about both our top and bottom line growth for the balance of
our fiscal year 2005. We have substantial production capacity in wafer
fabrication and test in place to 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 are not guarantees of future performance or events. They are
based upon current expectations, estimates, beliefs, and assumptions about
the future, which may prove incorrect, and upon our goals and objectives,
which may change. Often such statements can be identified by the use of the
words such as "will," "intends," "expects," "plans," "believes,"
"anticipates," and "estimates." Examples of forward-looking statements
include our optimism for revenue and income growth during this fiscal year
and our expectation that we have adequate production capacity to handle the
anticipated demand growth for our devices. 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 in the pre-production
stage, which incorporate our devices, whether competitors introduce
devices at lower prices than our devices causing price erosion, and whether
we are able to utilize our excess production and test capability without
incurring unexpected difficulties 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. We undertake no obligation to
publicly release updates or revisions to these statements which speak only
as of this date.
Conference Call Details
The company will host a conference call at 2:30 p.m. PDT (5:30 p.m. EDT) on
July 19, 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 first 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 800-540-0559
(domestic) or 785-832-1508 (toll, international) 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., August 2, 2004 by
dialing 800-934-2730 (domestic) or 402-220-1141 (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 Richard Siegel 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 June 30,
(in thousands, except per share amounts)
2004 2003
---- ----
Net sales $ 14,242 $ 12,479
Cost of sales 7,069 7,289
--------- ---------
Gross profit 7,173 5,190
Research and development 2,470 2,230
Selling, general and administrative 2,402 2,390
--------- ---------
Income from operations 2,301 570
Interest and other income, net 395 554
--------- ---------
Income before income taxes 2,696 1,124
Provision for income taxes 836 348
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Net income $ 1,860 $ 776
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Net income per share
Basic and diluted $ 0.14 $ 0.06
Shares used in per share computation
Basic 12,904 12,686
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Diluted 13,050 12,907
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SUPERTEX, INC.
CONSOLIDATED BALANCE SHEET INFORMATION
(unaudited)
June 30, 2004 March 31, 2004
(in thousands)
ASSETS
Cash and cash equivalents $ 74,394 $ 71,117
Short term investments 5,105 5,007
Accounts receivable, net 8,334 7,667
Inventories, net 11,807 12,606
Deferred income taxes 4,989 4,989
Other current assets 496 642
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Total current assets 105,125 102,028
Property, plant and equipment 9,302 9,731
Other assets 95 94
Deferred income taxes 944 944
---------- ----------
TOTAL ASSETS $ 115,466 $ 112,797
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LIABILITIES
Trade accounts payable $ 2,564 $ 2,354
Accrued salaries, wages and employee
benefits 7,310 7,449
Other accrued liabilities 409 481
Deferred revenue 3,016 3,254
Income taxes payable 2,319 1,485
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Total current liabilities 15,618 15,023
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SHAREHOLDERS' EQUITY
Common stock 32,581 32,134
Retained earnings 67,267 65,640
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Total shareholders' equity 99,848 97,774
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TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 115,466 $ 112,797
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