Exhibit 99.1
Contact: Arnold Agbayani
Sr. Vice President, Finance & CFO
IXYS Corporation
3540 Bassett Street
Santa Clara, California 95054
(408) 982-0700
IXYS CORPORATION ANNOUNCES RESULTS FOR FISCAL 2003, INCLUDING RECORD REVENUES
SANTA CLARA, CALIF. May 29, 2003 -- IXYS Corporation (NASDAQ:SYXI) today
released its financial results for its fourth fiscal quarter and its fiscal year
ended March 31, 2003.
For the fourth fiscal quarter ending March 31, 2003, IXYS reported record net
revenues of $37.8 million, compared with net revenues of $20.4 million reported
for the same period in fiscal year 2002, which represented 85.4%
period-to-period revenue growth.
Net loss for the fiscal quarter ending March 31, 2003 was $5.6 million, or $0.18
per diluted share, as compared to a net loss of $582,000, or $0.02 per diluted
share in the same period for the prior fiscal year.
Fourth quarter results include a charge for excess and obsolete inventory of
$7.0 million and litigation expenses of $2.4 million.
For the fiscal year ended March 31, 2003, IXYS Corporation reported net revenues
of $136.1 million, compared to net revenues of $82.8 million for the prior
fiscal year, which represented 64.3% year-to-year revenue growth.
Net loss for the fiscal year ended March 31, 2003 was $13.2 million, or $0.43
per diluted share, as compared to net income of $1.9 million, or $0.07 per
diluted share, reported for the prior fiscal year.
"IXYS has demonstrated five consecutive quarters of revenue growth, with three
consecutive quarters of record revenues. In the most recent quarter, we had
record orders for products, resulting in a book-to-bill ratio above one. We also
saw increased revenues from our traditional IXYS products in the power field. We
are pleased with our penetration into the high end consumer market, the
industrial processing market and the medical equipment market," commented Dr.
Nathan Zommer, Chief Executive Officer. "We continued R & D investments in our
proprietary IC programs, especially in our Clare division, and we expect results
to be evident in the coming quarters. We are pleased with the progress of Clare
and its integration into the IXYS culture."
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IXYS also released restated inventories, cost of goods sold, net loss and net
loss per share for the nine months ended December 31, 2002, along with a
corrected gross margin percentage. The restatement was necessary due to
bookkeeping errors that resulted in an overstatement in IXYS inventories during
the nine months ended December 31, 2002.
NINE MONTHS ENDED DECEMBER 31, 2002
AS PREVIOUSLY
REPORTED AS RESTATED
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Inventories $59,100 $54,963
Costs of Goods Sold $71,115 $75,252
Gross Margin 27.6% 23.4%
Net Loss $4,842 $7,531
Net Loss per Share-Basic $(0.16) $(0.25)
Net Loss per Share-Diluted $(0.16) $(0.25)
"As reported before, we discovered the errors and are taking actions to account
for them and rectify them. We take pride in the integrity of our management, as
reflected in the fact that we are long-term holders of IXYS stock, and we guide
the company towards the interests of its shareholders. Regarding inventory, we
had to take account of the shifts in market conditions and adjust the value of
the inventory," explained Dr. Zommer. "Our fourth quarter results show strong
cash growth, which strengthens further our financial position for future growth"
"This quarter we have seen a continuation of our revenue growth; however, we
have also started experiencing growth pains in our ability to cope with the more
complex structure of the company. As a result, errors have been discovered in
our accounting for inventories. We are correcting the errors and feel that we
are installing sufficient procedures to prevent this from happening in the
future. We continue to review the facts and circumstances that led to the
errors; however, we believe that no further adjustments relating to the errors
will be required in our financial statements. We believe that such a review is
both good corporate governance and instructive about avoiding similar problems
in the future," said Arnold Agbayani, Chief Financial Officer. "For our
guidance, we expect revenues for the June quarter to be 1-3% higher than those
of the March quarter.
IXYS develops and markets primarily high performance power semiconductors and
control ICs that are used in controlling and converting electrical power
efficiently in power systems for telecommunication infrastructure, motor drives,
medical systems and transportation. IXYS also
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serves emerging markets with digital and analog ICs that control flat panel
displays, medical instruments and telecommunication products.
Safe Harbor Statement
The foregoing press release contains forward-looking statements. Forward-looking
statements include those regarding our expectations for results from our R & D
investments, our financial position for future growth, our actions to correct
the bookkeeping errors and to install procedures to prevent them from happening
in the future, the review of IXYS's accounting related to inventories and other
accounts, our expectations that no further adjustments relating to the
bookkeeping errors will be required, and our expectations for our first fiscal
quarter ending June 30, 2003. Actual results may vary materially from those
contained in the forward-looking statements, due to the continued slowdown in
the semiconductor industry in general, our inability to cause our R & D
investments to result in significant revenue producing products, difficulties in
implementing the changes necessary to avoid errors in the future, and additional
errors and adjustments that could be identified during the continuing review of
the facts and circumstances that led to the errors in inventories. Further
information on other factors that could affect IXYS is detailed and included in
IXYS's 10-K, as amended, for the fiscal year ended March 31, 2002, 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.
Additional information may be obtained by visiting IXYS' website at
http://www.ixys.com, or by contacting the Company directly.
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IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
March 31, March 31,
2003 2002
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 42,842 $ 32,316
Accounts receivable, net 21,427 16,697
Inventories, net 47,611 46,317
Prepaid expenses 908 596
Deferred income taxes 2,223 2,553
--------- ---------
Total current assets 115,011 98,479
Plant and equipment, net 28,905 19,238
Other assets 26,917 4,828
Deferred income taxes 11,169 2,015
--------- ---------
Total assets $ 182,002 $ 124,560
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capitalized lease obligations $ 3,238 $ 2,391
Current portion of notes payable to bank 700 700
Accounts payable 11,129 5,606
Accrued expenses and other liabilities 14,167 8,383
--------- ---------
Total current liabilities 29,234 17,080
Capitalized lease and other long term obligations, net of current portion 5,042 4,888
Pension liabilities 9,924 7,373
--------- ---------
Total liabilities 44,200 29,341
--------- ---------
Common stock, $0.01 par value:
31,952,554 issued and 31,877,554 outstanding in March 31, 2003
and 26,902,192 issued and 26,827,192 outstanding in March 31, 2002 320 268
Additional paid in capital 144,362 92,340
Notes receivable from stockholders (913) (853)
Retained earnings (accumulated deficit) (7,325) 5,827
Accumulated other comprehensive income (loss) 1,358 (2,363)
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Total stockholders' equity 137,802 95,219
--------- ---------
Total liabilities and stockholders' equity $ 182,002 $ 124,560
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IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended Fiscal Year Ended
March 31, March 31,
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Net revenues $ 37,819 $ 20,394 $ 136,111 $ 82,821
Cost of goods sold 33,641 14,779 108,893 56,918
--------- --------- --------- ---------
Gross profit 4,178 5,615 27,218 25,903
--------- --------- --------- ---------
Operating expenses:
Research, development and engineering 3,573 1,880 12,861 5,728
Selling, general and administrative 7,583 3,423 27,461 12,884
Restructuring charge -- -- 750 --
--------- --------- --------- ---------
Total operating expenses 11,156 5,303 41,072 18,612
--------- --------- --------- ---------
Operating income (loss) (6,978) 312 (13,854) 7,291
Other expense, net (2,757) (1,255) (5,558) (4,169)
--------- --------- --------- ---------
Income (loss) before income tax provision (benefit) (9,735) (943) (19,412) 3,122
Provision (benefit) for income tax (4,114) (361) (6,260) 1,184
--------- --------- --------- ---------
Net income (loss) $ (5,621) $ (582) $ (13,152) $ 1,938
========= ========= ========= =========
Net income (loss) per share - basic $ (0.18) $ (0.02) $ (0.43) $ 0.07
========= ========= ========= =========
Weighted average shares used in per share calculation - basic 31,918 26,771 30,911 26,745
========= ========= ========= =========
Net income (loss) per share - diluted $ (0.18) $ (0.02) $ (0.43) $ 0.07
========= ========= ========= =========
Weighted average shares used in per share calculation - diluted 31,918 26,771 30,911 29,004
========= ========= ========= =========
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