Supertex Reports Fourth Fiscal Quarter and Fiscal Year-End Results

Supertex Reports Fourth Fiscal Quarter and Fiscal Year-End Results 
SUNNYVALE, CA -- (Marketwired) -- 05/08/13 --  Supertex, Inc.
(NASDAQ: SUPX) 


 
--  Q4 sales $14.6 million, 2% higher sequentially
--  Full year sales $61.0 million, 7% lower than the prior fiscal year
--  Q4 GAAP EPS $0.13 and full year GAAP EPS $0.36 representing a one cent
    increase over the prior quarter and two cent decline for the year
--  Q4 gross margin 52.4% compared to 50.9% in the prior quarter and FY13
    gross margin 48.9% compared to 46.8% last fiscal year
--  Q4 and total year net cash flow from operations $3.5 million and $17.9
    million, respectively
--  Q1 FY14 sales expected to grow approximately 6% sequentially

  
Supertex, Inc. (NASDAQ: SUPX), a leader in high voltage mixed signal
semiconductors, today reported financial results for the fourth
fiscal quarter and fiscal year ended March 30, 2013. Net sales for
the fourth fiscal quarter were $14,649,000, a 2% increase compared to
the prior quarter of $14,373,000 and an 11% decrease compared to
$16,451,000 in the same quarter last year. On a GAAP basis, net
income in the fourth fiscal quarter was $1,529,000 or $0.13 per
diluted share, as compared with $1,431,000 or $0.12 per diluted share
in the prior fiscal quarter, and $1,273,000 or $0.11 per diluted
share in the same quarter of the prior fiscal year.  
For the fiscal year ended March 30, 2013, net sales declined 7% to
$61,000,000 versus $65,535,000 for the prior fiscal year. On a GAAP
basis, net income declined 11% to $4,247,000, or $0.36 per diluted
share, as compared with $4,749,000, or $0.38 per diluted share.  
Non-GAAP earnings per diluted share for the fourth quarter of fiscal
2013 were $0.18, excluding pre-tax employee stock-based compensation
of $639,000, compared with $0.18 in the prior quarter, excluding
pre-tax employee stock-based compensation of $648,000, and $0.16 in
the same quarter of the prior fiscal year, excluding pretax employee
stock-based compensation of $788,000. For the fiscal year ended March
30, 2013, non-GAAP earnings per diluted share were $0.59, excluding
pre-tax employee stock-based compensation of $2,801,000, as compared
to $0.62 for the same period of the prior fiscal year, excluding
pre-tax employee stock-based compensation o
f $3,031,000. 
Higher shipments of LED backlighting products and printer head
drivers drove the sequential sales increase. Sales of a new LED
backlighting driver for a new series of TVs, including 3D, grew
significantly, and sales of LED drivers for backlighting high end
monitors doubled sequentially. Shipments of printer head drivers,
some of which are used in 3D printers, more than doubled. These
increases more than offset the seasonal decline in Medical product
sales. 
Sequentially, gross margin increased by 150 basis points and
operating expense was essentially flat. Income tax rate was 15%
compared to a tax benefit of 22% last quarter. Cash flow from
operating activities was $3.5 million. 
Fiscal 2013 recap 
"While total annual sales declined 7% compared to fiscal 2012, we
believe our quarterly sales have troughed and we expect our new
products will fuel future growth," stated Dr. Henry C. Pao, President
and CEO. "We launched 22 new products during fiscal 2013 and have
many more in the pipeline, of which four are expected to be launched
in the first quarter of fiscal 2014. Most of our new products address
our growth markets, medical and LED general lighting and
backlighting, however we are also working on products for new
industrial applications. In addition, we are working on several
exciting custom products which could generate revenue even this
fiscal year. During fiscal 2013 we generated $4.2 million in net
income with a tax rate of 11% and $17.9 million in positive cash flow
from operating activities. We paid a special dividend of $11.5
million and repurchased 498,000 shares of our common stock for $8.7
million." 
Outlook 
Visibility of sales growth opportunities for the products recently
launched is much better than a year ago. Current book-to-bill ratio
is 1.1. Sales in the first quarter of fiscal 2014 are expected to be
approximately 6% higher sequentially with increases occurring in most
target markets. First quarter gross margin is expected to be 52% to
53%, with a tax benefit of approximately $0.3 million due to
expiration of statutes of limitations on uncertain tax positions. The
Company believes it is on track to meet its goal of growing quarterly
sales by 20% in the fourth quarter of fiscal 2014 compared to the
same period of fiscal 2013. 
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 belief that quarterly sales
have troughed, with anticipated first fiscal quarter sales to be
approximately 6% higher sequentially with increases occurring in most
target markets, our expectation that our new products will fuel
future growth, and that we will launch four in the first fiscal
quarter, our belief that we're on track to meet our goal of growing
quarterly sales by 20% in the fourth quarter of fiscal 2014 compared
to the same period of fiscal 2013, our anticipation that gross margin
will be 52% to 53% in the first fiscal quarter of 2014 and that we'll
have a net tax benefit of approximately $0.3 million in the first
quarter, and our view that some of the new custom products we're
working on could generate revenue this 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 based in part upon their input and our order
backlog, whether our distributors have the sell-through we anticipate
and whether we receive the additional orders we anticipate, whether
the designed performance of our devices satisfies our customers'
requirements so that they continue to design our devices into their
products, whether our devices perform to their design specification,
whether competitors introduce devices at lower prices than our
devices causing price erosion, whether we are successful in the
engineering of new products, whether we encounter production issues
in device manufacturing or moving new products from engineering into
production, whether customers have requirements for deliveries of
newly launched products during fiscal 2014, whether the world-wide
economy will be healthy during fiscal 2014, and whether our fab
equipment continues to operate at expected capacities without need of
replacement, 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 that speak
only as of this date.  
Conference Call Details  
The Company will host a conference call at 2:30 p.m. PT (5:30 p.m.
ET) on May 8, 2013, following the earnings release. President and
CEO, Dr. Henry C. Pao, and CFO, Phil Kagel, will present an overview
of the fourth fiscal quarter and year-end financial results, discuss
current business conditions, and then respond to questions. 
The call will be available live for any interested party by dialing
866-952-1906 (domestic) or 785-424-1825 (toll, international) 5
minutes before the scheduled start time. A recorded replay will be
available shortly after the call as a downloadable .mp3 file at
http://www.supertex.com/company_ir.html until 11:59 p.m. ET, June 7,
2013. 
About Supertex  
Supertex, Inc. is a publicly held mixed signal semiconductor
manufacturer, focused in high voltage products for use in the medical
ultrasound imaging, LCD TV and computer monitor backlighting, LED
general lighting, telecommunications, printer, flat panel display,
industrial and consumer product industries. Supertex product,
corporate and financial information is readily available at our
website: http://www.supertex.com.  
For further information, contact Investor Relations at Supertex,
Inc., 1235 Bordeaux Drive, Sunnyvale, California 94089, 408-222-8888
or visit our website at http://www.supertex.com. 
Use of Non-GAAP Financial Information  
To supplement our financial results presented in accordance with
GAAP, we use the following non-GAAP financial measures: non-GAAP net
income and diluted non-GAAP net income per share. We present such
non-GAAP financial measures in reporting our financial results to
provide investors with an additional tool to evaluate our operating
results. Because these non-GAAP measures are not calculated in
accordance with GAAP, they may not necessarily be comparable to
similarly titled measures employed by other companies. These non-GAAP
financial measures should not be considered in isolation or as a
substitute for comparable GAAP measures, and should be read only in
conjunction with our consolidated financial statements prepared in
accordance with GAAP.  
Our management uses each of the above non-GAAP financial measures
internally to understand, manage and evaluate our business. Our
management believes it is useful for us and for investors to review,
as applicable, both GAAP information, which includes employee
stock-based compensation expense, and the non-GAAP measures, which
exclude this information, in order to assess the performance of our
core continuing businesses and for planning and forecasting in future
periods. Each of these non-GAAP measures is intended to provide
investors with an understanding of our operational results and trends
that more readily enables them to analyze our base financial and
operating performance and facilitate period-to-period comparisons and
analysis of operating trends. Our management believes each of these
non-GAAP financial measures is useful to investors in allowing for
greater transparency with respect to supplemental information used by
management in its financial and operational decision-making.  
Our GAAP cost of sales and operating expenses include employee
stock-based compensation. Our non-GAAP financial measures reflect
adjustments to exclude this employee stock-based compensation. We
believe cost of sales excluding share-based compensation, R&D expense
excluding share-based compensation, and SG&A expense excluding
share-based compensation are useful information for investors because
comparative differences in the corresponding GAAP measures for
different periods may reflect factors such as a different stock price
when equity awards were made and different equity award practices
rather than changes in the operation of the business. Stock options
are the form of equity compensation we presently utilize and they are
a key incentive we offer our employees. We believe they have
contributed to the sales earned during the period and will contribute
to our future sales generation. Employee stock-based compensation
expenses will recur in future periods.  


 
                                                                            
                               SUPERTEX, INC.                               
                   CONSOLIDATED BALANCE SHEET INFORMATION                   
                                (unaudited)                                 
                                                                            
                                                 March 30,      March 31,   
                                                    2013           2012     
                                               -------------  ------------- 
                                                      (in thousands)        
ASSETS                                                                      
Cash and cash equivalents                      $      16,414  $      19,860 
Short term investments                               123,847        111,137 
Trade accounts receivable, net                         7,335          8,021 
Inventories                                           11,344         14,438 
Deferred tax assets                                    7,517          7,529 
Prepaid income taxes                                   3,203          3,032 
Prepaid expenses and other current assets              2,538          6,786 
                                               -------------  ------------- 
  Total current assets                               172,198        170,803 
Long term investments                                 13,800         25,900 
Property, plant and equipment, net                     4,334          4,941 
Other assets                                             787            621 
Deferred tax assets, noncurrent                        5,659          5,375 
                                               -------------  ------------- 
TOTAL ASSETS                                   $     196,778  $     207,640 
                                               =============  ============= 
                                                                            
LIABILITIES                                                                 
Trade accounts payable                         $       2,521  $       1,994 
Accrued salaries and employee benefits                13,230         12,434 
Other accrued liabilities                                633            615 
Deferred revenue                                       2,651          2,560 
Income taxes payable                                     165             23 
                                               -------------  ------------- 
  Total current liabilities                           19,200         17,626 
Income taxes payable, noncurrent                       3,535          4,161 
Deferred tax liabilities, noncurrent                     115              - 
Other accrued liabilities, noncurrent                    575            561 
                                               -------------  ------------- 
  Total liabilities                                   23,425         22,348 
                                                                            
                                                                            
SHAREHOLDERS' EQUITY                                                        
Common stock                                          68,389         68,031 
Accumulated other comprehensive loss                    (564)        (1,345)
Retained earnings                                    105,528        118,606 
                                               -------------  ------------- 
  Total shareholders' equity                         173,353        185,292 
                                               -------------  ------------- 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $     196,778  $     207,640 
                                               =============  ============= 
                                     
                                       
                                                                            
                                                                            
                               SUPERTEX, INC.                               
                  CONSOLIDATED INCOME STATEMENT INFORMATION                 
                                 (unaudited)                                
                                                                            
                              Three Months Ended         Twelve Months Ended
                      ---------------------------------  -------------------
                             (in thousands, except per share amounts)       
                      March 30, December 29,  March 31,  March 30, March 31,
                           2013         2012       2012       2013      2012
                      --------- ------------  ---------  --------- ---------
Net sales             $  14,649 $     14,373  $  16,451  $  61,000 $  65,535
Cost of sales(1)          6,970        7,057      8,723     31,163    34,855
                      --------- ------------  ---------  --------- ---------
  Gross profit            7,679        7,316      7,728     29,837    30,680
Research and                                                                
 development(1)           3,494        3,440      3,885     13,976    14,399
Selling, general and                                                        
 administrative(1)        3,191        3,113      3,614     13,137    12,840
                      --------- ------------  ---------  --------- ---------
  Income from                                                               
   operations               994          763        229      2,724     3,441
Interest and other                                                          
 income, net                800          412        837      2,030     1,404
                      --------- ------------  ---------  --------- ---------
  Income before                                                             
   income taxes           1,794        1,175      1,066      4,754     4,845
Provision for                                                               
 (Benefit from)                                                             
 income taxes               265         (256)      (207)       507        96
                      --------- ------------  ---------  --------- ---------
  Net income          $   1,529 $      1,431  $   1,273  $   4,247 $   4,749
                      ========= ============  =========  ========= =========
Net income per share:                                                       
   Basic              $    0.13 $       0.12  $    0.11  $    0.36 $    0.38
                      ========= ============  =========  ========= =========
   Diluted            $    0.13 $       0.12  $    0.11  $    0.36 $    0.38
                      ========= ============  =========  ========= =========
Shares used in per                                                          
 share computation:                                                         
   Basic                 11,519       11,567     12,044     11,716    12,340
                      ========= ============  =========  ========= =========
   Diluted               11,521       11,568     12,048     11,718    12,351
                      ========= ============  =========  ========= =========
                                                                            
                                                                            
(1) Includes amortization of                                                
 employee stock-based                                                       
 compensation as follows:                                                   
   Cost of sales      $     100 $        108  $     156  $     472 $     590
   Research and                                                             
    development       $     346 $        318  $     343  $   1,348 $   1,271
   Selling, general                                                         
    and                                                                     
    administrative    $     193 $        222  $     289  $     981 $   1,170
                                                                            
                                                                            

 
                                                                            
                               SUPERTEX, INC.                               
          SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS          
                                (unaudited)                                 
                                                                            
                           Three Months Ended           Twelve Months Ended 
                   ----------------------------------  -------------------- 
                           (in thousands, except per share amounts)         
                   March 30,  December 29,  March 31,  March 30,  March 31, 
                        2013          2012       2012       2013       2012 
                   ---------  ------------  ---------  ---------  --------- 
GAAP net income    $   1,529  $      1,431  $   1,273  $   4,247  $   4,749 
Adjustment for                                                              
 stock-based                                                                
 compensation                                                               
 included in:                                                               
  Cost of sales          100           108        156        472        590 
  Research and                                                              
   development           346           318        343      1,348      1,271 
  Selling, general                                                          
   and                                                                      
   administrative        193           222        289        981      1,170 
                   ---------  ------------  ---------  ---------  --------- 
    Subtotal             639           648        788      2,801      3,031 
Tax effect of                                                               
 stock-based                                                                
 compensation            (69)          (11)       (93)      (116)      (160)
                   ---------  ------------  ---------  ---------  --------- 
Non-GAAP net                                                                
 income excluding                                                           
 employee stock-                                                            
 based                                                                      
 compensation      $   2,099  $      2,068  $   1,968  $   6,932  $   7,620 
                   =========  ============  =========  =========  ========= 
                                                                            
Non-GAAP net                                                                
 income per share:                                                          
  Basic            $    0.18  $       0.18  $    0.16  $    0.59  $    0.62 
                   =========  ============  =========  =========  ========= 
  Diluted          $    0.18  $       0.18  $    0.16  $    0.59  $    0.62 
                   =========  ============  =========  =========  ========= 
Shares used in per                                                          
 share                                                                      
 computation:                                                               
  Basic               11,519        11,567     12,044     11,716     12,340 
                   =========  ============  =========  =========  ========= 
  Diluted             11,521        11,568     12,048     11,718     12,351 
                   =========  ============  =========  =========  ========= 
                                                                            
                                                                            
                                                                            
                               SUPERTEX, INC.                               
     SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE      
                                (unaudited)                                 
                                                                            
                           Three Months Ended           Twelve Months Ended 
                   ----------------------------------  -------------------- 
                           (in thousands, except per share amounts)         
                   March 30,  December 29,  March 31,  March 30,  March 31, 
                        2013         
 2012       2012       2013       2012 
                   ---------  ------------  ---------  ---------  --------- 
Shares used in per                                                          
 share                                                                      
 computation:                                                               
  Diluted             11,521        11,568     12,048     11,718     12,351 
                   =========  ============  =========  =========  ========= 
                                                                            
DILUTED:                                                                    
GAAP net income                                                             
 per share         $    0.13  $       0.12  $    0.11  $    0.36  $    0.38 
Adjustments to                                                              
 reconcile net                                                              
 income to non-                                                             
 GAAP net income                                                            
 per share:                                                                 
Employee stock-                                                             
 based                                                                      
 compensation                                                               
 effects included                                                           
 in:                                                                        
  Cost of sales         0.01          0.01       0.01       0.04       0.05 
  Research and                                                              
   development          0.03          0.03       0.03       0.12       0.10 
  Selling, general                                                          
   and                                                                      
   administrative       0.02          0.02       0.02       0.08       0.10 
  Tax effect of                                                             
   stock-based                                                              
   compensation        (0.01)        (0.00)     (0.01)     (0.01)     (0.01)
                   ---------  ------------  ---------  ---------  --------- 
Non-GAAP net                                                                
 income per share                                                           
 excluding                                                                  
 employee stock-                                                            
 based                                                                      
 compensation      $    0.18  $       0.18  $    0.16  $    0.59  $    0.62 
                   =========  ============  =========  =========  ========= 

  
Corporate Headquarters:
Dr. Henry C. Pao
President & CEO
408/222-8888 
 
 
Press spacebar to pause and continue. Press esc to stop.