IXYS Announces Results for the Quarter and Fiscal Year Ended March 31, 2013

IXYS Announces Results for the Quarter and Fiscal Year Ended March 31, 2013

Quarter End Highlights:

  • Net revenues for the fourth quarter of fiscal year 2013 were $66.9 million, up 4.8% from the December 2012 quarter
  • Eighth consecutive quarter of record cash

Year End Highlights:

  • More than 30 new products launched
  • Record cash level at $107.4 million
  • Stock buyback of more than 700,000 shares
  • Shareholder dividends paid during the year

MILPITAS, Calif.--(BUSINESS WIRE)-- IXYS Corporation (NAS: IXYS) , an international power semiconductor and IC company, today announced results for its fourth quarter and fiscal year ended March 31, 2013.

Net revenues for the fiscal year ended March 31, 2013 were $280.0 million, a decrease of 23.9% from record net revenues of $368.0 million in the prior fiscal year. Net income for the fiscal year ended March 31, 2013 was $7.6 million, or $0.24 per diluted share, as compared to net income of $30.3 million, or $0.93 per diluted share, in the prior fiscal year.

Cash and cash equivalents totaled $107.4 million at March 31, 2013, an increase of $8.3 million as compared to March 2012. The company announced its eighth consecutive quarter ending in record cash. This cash level was achieved even after the company purchased about 706,800 shares of its common stock for about $6.5 million during the fiscal year and after paying shareholder dividends.

"We are pleased to see our cash continue to grow to record levels despite economic challenges worldwide," commented Dr. Nathan Zommer, Chairman and CEO. "During the year, we increased our focus on R&D and unified our global sales and marketing activities under the 'World of IXYS' campaign. We had a remarkable stream of more than 30 new product introductions that are well suited for our markets and are timely as we start to see the recovery of our business."

Net revenues for the fourth quarter of fiscal 2013 were $66.9 million, up 4.8% sequentially from net revenues of $63.8 million in the immediately preceding quarter, and 23.3% lower as compared to net revenues of $87.2 million for the same quarter in the prior fiscal year.

Net loss for the fourth quarter of fiscal 2013 was $1.9 million, or $0.06 loss per diluted share, as compared to net income of $3.7 million, or $0.11 per diluted share, for the same quarter in the prior fiscal year. Excluding the impact of non-benefitted losses in certain tax jurisdictions and the write-down of certain investments in marketable securities, non-GAAP net income for the quarter ended March 31, 2013 would have been $862,000 or $0.03 per diluted share, as compared to net income of $3.7 million, or $0.11 per diluted share, for the same quarter in the prior fiscal year.

Gross profit for the fiscal year ended March 31, 2013 was $84.9 million, or 30.3% of net revenues, as compared to gross profit of $119.2 million, or 32.4% of net revenues, in the prior fiscal year.

Gross profit for the quarter ended March 31, 2013 was $18.1 million, or 27.1% of net revenues, as compared to gross profit of $29.8 million, or 34.2% of net revenues, for the same quarter in the prior fiscal year.

"A continued slow growth macroeconomic environment, with the debt crisis in Europe and GDP growth slowdown in Asian countries, has impacted sales across the semiconductor industry. We are not impervious to these issues, which have been further exacerbated by the higher tax rates we incurred during the March quarter," said Uzi Sasson, President and CFO. "On a more optimistic note, we are beginning to see signs of a recovery in the marketplace and we expect revenues in the June 2013 quarter to be slightly higher than revenues for the March 2013 quarter. When markets rebound, IXYS' tax strategies in favorable jurisdictions are expected to prove advantageous."

About IXYS Corporation

Since its founding in Silicon Valley, IXYS Corporation has been developing technology-driven products to improve energy conversion efficiency, generate clean energy, improve automation, and provide advanced products for the transportation, medical and telecommunications industries. IXYS, with its subsidiaries, is a worldwide pioneer in the development of power semiconductors, solid state relays, high voltage integrated circuits (HVIC), and microcontrollers that are necessary in conserving energy and in reducing the world's dependence on fossil fuels.

Diminishing natural resources, demand for renewable energy and environmental directives for energy efficiency represent a significant challenge. IXYS' power semiconductors and mixed-signal integrated circuits (IC) play a vital role in reducing energy costs and consumption by optimizing the energy efficiency of everyday products. With an end customer base of over 3,500 telecommunications, transportation, industrial, medical and consumer companies, IXYS is a worldwide recognized provider of advanced semiconductors.

Additional information may be obtained by visiting IXYS' website at http://www.ixys.com, or by contacting the company directly.

Non-GAAP Financial Information

Included above and within the attached schedules are certain non-GAAP financial figures. During the fourth quarter of fiscal 2013, the company experienced losses in certain jurisdictions where statutory tax rates are lower than in the countries where the company's principal operations occur. Adjusting the net loss in the March 2013 quarter to eliminate non-benefitted losses in certain tax jurisdictions results in a financial presentation for the company's operations without the effect of the company's structure intended to improve after-tax results over time. Adjusting the net loss in the March 2013 quarter to eliminate the write-down of certain investments in marketable securities results in a financial presentation for the company without the effect of certain write-downs that are not expected to reoccur. Management believes non-GAAP net income and non-GAAP net income per share are useful measures of operating performance because these effects are either believed to be temporary in nature or are not expected to reoccur. However, the non-GAAP measures should be considered in addition to, not as a substitute for, or superior to net income and net income per share, or other financial measures prepared in accordance with GAAP.

Safe Harbor Statement

The foregoing press release contains forward-looking statements, including those related to the start of the recovery of our business, the macroeconomic environment, the signs of recovery in the marketplace, our revenues in the June 2013 quarter, the rebounding of markets and our tax strategies in favorable jurisdictions. Actual results may vary materially from those contained in the forward-looking statements, due to changes in customer delivery schedules, the cancellation of orders, an unanticipated decline in our business, increased competition, cash flow difficulties, unanticipated technological hurdles, manufacturing challenges and constraints, adverse changes in customer demand, declining economic conditions, reduced capital goods and infrastructure expenditures and increasing product costs, among other things. Further information on other factors that could affect IXYS is detailed and included in reports that IXYS has filed with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended December 31, 2012. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements.

 
IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 
 March 31, March 31,
20132012
ASSETS
Current assets:
Cash and cash equivalents$107,430$99,113
Accounts receivable, net37,75248,420
Other receivables1,110853
Inventories, net83,82986,240
Prepaid expenses and other current assets4,8756,081
Deferred income taxes 7,167  8,450
Total current assets242,163249,157
Plant and equipment, net51,99556,071
Other assets13,12813,053
Deferred income taxes 24,847  25,629
 
Total assets$332,133 $343,910
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Current portion of capitalized lease obligations$2,458$2,873
Current portion of notes payable to bank15,9561,696
Accounts payable12,82214,427
Accrued expenses and other current liabilities 16,992  22,023
Total current liabilities48,22841,019
Capitalized lease and other long term obligations, net of current portion15,31033,783
Pension liabilities 16,330  15,001
Total liabilities 79,868  89,803
 
Common stock378378
Additional paid-in capital140,605141,445
Retained earnings115,718110,194
Accumulated other comprehensive income (4,436) 2,090
Stockholders' equity 252,265  254,107
 
Total liabilities and stockholders' equity$332,133 $343,910
 

 
IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 
 Three Months Ended Twelve Months Ended
March 31,March 31,
2013 20122013 2012
  
Net revenues$66,884$87,181$280,014$368,004
Cost of goods sold 48,770   57,340  195,134   248,760
Gross profit 18,114   29,841  84,880   119,244
 
Operating expenses:
Research, development and engineering8,0898,38028,02228,847
Selling, general and administrative8,70510,84539,28742,063
Amortization of intangibles5616392,2442,524
Restructuring and impairment charges -   6,448  -   6,448
Total operating expenses 17,355   26,312  69,553   79,882
Operating income7593,52915,32739,362
Other income (expense), net (722)  (337) (645)  1,179
Income before income tax provision373,19214,68240,541
Provision for income tax 1,942   (520) 7,034   10,235
Net income (loss)$(1,905) $3,712 $7,648  $30,306
 
Net income (loss) per share - basic$(0.06) $0.12 $0.25  $0.97
 
Weighted average shares used in per share calculation - basic 30,857   31,288  31,025   31,344
 
Net income (loss) per share - diluted$(0.06) $0.11 $0.24  $0.93
 
Weighted average shares used in per share calculation - diluted 30,857   32,382  31,695   32,496
 

 
GAAP reconciliation to non-GAAP financial measures
(In thousands, except per share amounts)
 
Quarter Ended Twelve Months Ended
31-Mar-13 31-Mar-1231-Mar-13 31-Mar-12
 
Net (loss) income, as reported (GAAP)$(1,905)$3,712$7,648$30,306
Adjustment to GAAP net income (net of taxes)
Non-benefitted losses in certain tax jurisdictions1,8951,895
Write-down of certain investments in marketable securities 872   872 
Non-GAAP net income$862 $3,712$10,415$30,306
 
Net (loss) income per share-basic, as reported (GAAP)$(0.06)$0.12$0.25$0.97
Adjustment to GAAP net income (net of taxes)
Non-benefitted losses in certain tax jurisdictions0.060.06
Write-down of certain investments in marketable securities 0.03   0.03 
Net income per share-basic (non-GAAP)$0.03 $0.12$0.34$0.97
 
Net (loss) income per share-diluted, as reported (GAAP)$(0.06)$0.11$0.24$0.93
Adjustment to GAAP net income (net of taxes)
Non-benefitted losses in certain tax jurisdictions0.060.06
Write-down of certain investments in marketable securities 0.03   0.03 
Net income per share-diluted (non-GAAP)$0.03 $0.11$0.33$0.93
 
Weighted average shares used in per share calculation
Basic30,85731,28831,02531,344
Dilutive weighted average shares 597  1,094 670 1,152
Diluted31,45432,38231,69532,496



IXYS Corporation
Uzi Sasson, 408-457-9000
President & CFO

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

The article IXYS Announces Results for the Quarter and Fiscal Year Ended March 31, 2013 originally appeared on Fool.com.

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