Supertex Reports First Fiscal Quarter Results

Supertex Reports First Fiscal Quarter Results 
SUNNYVALE, CA -- (Marketwired) -- 07/23/13 --  Supertex, Inc.
(NASDAQ: SUPX) 


 
--  Q1 sales $16.2 million, 11% higher sequentially and 1% higher year
    over year
--  Q1 GAAP EPS $0.25 representing a $0.12 increase over the prior quarter
    and a $0.20 increase compared to the same quarter last year. Q1 EPS
    included an $0.08 favorable discrete tax item.
--  Q1 gross margin 53.9% compared to 52.4% in the prior quarter and 46.7%
    in the first quarter of last year
--  Q1 net cash flow from operations $3.8 million
--  Q2 sales expected to grow approximately 5% sequentially

  
Supertex, Inc. (NASDAQ: SUPX), a leader in high voltage mixed signal
semiconductors, today reported financial results for the first fiscal
quarter ended June 29, 2013. Net sales for the first fiscal quarter
were $16,198,000, an 11% increase compared to the prior quarter of
$14,649,000 and a 1% increase compared to $16,059,000 in the same
quarter last year. On a GAAP basis, net income in the first fiscal
quarter was $2,886,000 or $0.25 per diluted share, as compared with
$1,529,000 or $0.13 per diluted share in the prior fiscal quarter,
and $597,000 or $0.05 per diluted share in the same quarter of the
prior fiscal year.  
Non-GAAP earnings per diluted share for the first quarter of fiscal
2014 were $0.30, excluding pre-tax employee stock-based compensation
of $643,000, compared with $0.18 in the prior quarter, excluding
pre-tax employee stock-based compensation of $639,000, and $0.11 in
the same quarter of the prior fiscal year, excluding pretax employee
stock-based compensation of $745,000.  
Overall sales grew 11% sequentially. Medical electronics product
sales increased 13%, rebounding from last quarter due to normal
seasonal demand and higher shipments of new advanced higher density
analog switches. Additionally, within the printer/EL driver market,
new printer head driver sales increased 80%, while industrial/other
product sales increased 21%. Within the LED driver market, sales of
LED drivers for general lighting increased 14% which partially offset
reductions in sales of LED drivers for backlighting LCD monitors and
LED TVs. We believe that the sales reduction of LED drivers for LED
TVs is temporary.  
For the second consecutive quarter, gross margin increased by 150
basis points to 53.9% and operating expense was essentially flat. The
income tax benefit of $314,000 was due to an expiration of a statute
of limitations on uncertain tax positions of $949,000 which improved
GAAP EPS by $0.08. Cash flow generated from operating activities was
$3.8 million. Auction rate securities totaling $12,950,000 were
redeemed at par value, favorably reducing the total book value of
previously frozen cash from $13,800,000 to $1,900,000. Since we
completed our major repurchase of approximately 1.7 million shares
for approximately $32.1 million between January 2011 and the end of
fiscal 2013, we have repurchased approximately 16,000 shares of stock
for $350,000.  
First Fiscal Quarter recap 
"We're very pleased with customer acceptance of our new products and
improvement in our operating performance," stated Dr. Henry C. Pao,
President and CEO. "Sales of our new analog switches have ramped up
quickly, and we have gained many design wins with our new higher
density analog switches for medical ultrasound systems. Our printer
head driver sales for a new series of printers for printing on
ceramics and textiles, as well as for printing in 3D, grew 80%
sequentially after doubling in the previous quarter. We also started
shipping in volume a custom product for a consumer application, which
is included in our industrial/other market. There are further growth
opportunities for our recently-launched products for medical
ultrasound, printer, LED lighting and industrial/other products,
which span nearly all of our target markets. In large part due to our
increased sales, we continue to improve our gross margin and generate
positive cash flow from operating activities." 
Second Fiscal Quarter Outlook 
Sales order visibility continues to be better than in fiscal 2013 and
book-to-bill ratio remains above 1. Sales in the second quarter of
fiscal 2014 are expected to be approximately 5% higher sequentially
with increases occurring in most of our target markets. Second
quarter gross margin is expected to be 53% to 55%, and our tax rate
is estimated to be approximately 25%. The Company expects to launch
several new LED drivers for general lighting and for TV backlighting
as patent filings are completed, as well as products for medical
ultrasound and for the industrial/other market. 
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 there are growth
opportunities for our recently-launched products for medical
ultrasound, printer, LED lighting and industrial/other products; our
expectations that for the second fiscal quarter sales will be 5%
higher sequentially, gross margin will be 53% to 55%, and our tax
rate will be approximately 25%; our belief that the reduction in
sales of LED drivers for LED TVs is temporary; and our anticipation
that we will launch several new products for general lighting, TV
backlighting, medical ultrasound and industrial markets. 
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 July 23, 2013, following the earnings release. President and
CEO, Dr. Henry C. Pao, and CFO, Phil Kagel, will present an overview
of the first fiscal quarter 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, August
23, 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)                                 
                                                                            
                                                   June 29,      March 30,  
                                                     2013          2013     
                                                 ------------  ------------ 
                                                       (in thousands)       
ASSETS                                                                      
Cash and cash equivalents                        $     29,184  $     16,414 
Short term investments                                126,456       123,847 
Trade accounts receivable, net                          7,688         7,335 
Inventories                                            11,418        11,344 
Deferred tax assets                                     7,768         7,517 
Prepaid income taxes                                    3,285         3,203 
Prepaid expenses and other current assets               2,551         2,538 
                                                 ------------  ------------ 
  Total current assets                                188,350       172,198 
Long term investments                                   1,900        13,800 
Property, plant and equipment, net                      4,164         4,334 
Other assets                                              759           787 
Deferred tax assets, noncurrent                         5,292         5,659 
                                                 ------------  ------------ 
TOTAL ASSETS                                     $    200,465  $    196,778 
                                                 ============  ============ 
                                                                            
LIABILITIES                                                                 
Trade accounts payable                           $      2,819  $      2,521 
Accrued salaries and employee benefits                 13,229        13,230 
Other accrued liabilities                               1,148           633 
Deferred revenue                                        2,661         2,651 
Income taxes payable                                      241           165 
                                                 ------------  ------------ 
  Total current liabilities                            20,098        19,200 
Income taxes payable, noncurrent                        2,626         3,535 
Deferred tax liabilities, noncurrent                      115           115 
Other accrued liabilities, noncurrent                     579           575 
                                                 ------------  ------------ 
  Total liabilities                                    23,418        23,425 
                            
                                                
                                                                            
SHAREHOLDERS' EQUITY                                                        
Common stock                                           69,237        68,389 
Accumulated other comprehensive loss                     (348)         (564)
Retained earnings                                     108,158       105,528 
                                                 ------------  ------------ 
  Total shareholders' equity                          177,047       173,353 
                                                 ------------  ------------ 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $    200,465  $    196,778 
                                                 ============  ============ 
                                                                            
                                                                            
                               SUPERTEX, INC.                               
                  CONSOLIDATED INCOME STATEMENT INFORMATION                 
                                 (unaudited)                                
                                                                            
                                               Three Months Ended           
                                    ----------------------------------------
                                    (in thousands, except per share amounts)
                                      June 29,      March 30,     June 30,  
                                        2013           2013         2012    
                                    ------------  ------------- ------------
Net sales                           $     16,198  $      14,649 $     16,059
Cost of sales(1)                           7,466          6,970        8,565
                                    ------------  ------------- ------------
  Gross profit                             8,732          7,679        7,494
Research and development(1)                3,480          3,494        3,486
Selling, general and                                                        
 administrative(1)                         3,149          3,191        3,384
                                    ------------  ------------- ------------
  Income from operations                   2,103            994          624
Interest and other income, net               469            800          202
                                    ------------  ------------- ------------
  Income before income taxes               2,572          1,794          826
Provision for (Benefit from) income                                         
 taxes                                      (314)           265          229
                                    ------------  ------------- ------------
  Net income                        $      2,886  $       1,529 $        597
                                    ============  ============= ============
Net income per share:                                                       
    Basic                           $       0.25  $        0.13 $       0.05
                                    ============  ============= ============
    Diluted                         $       0.25  $        0.13 $       0.05
                                    ============  ============= ============
Shares used in per share                                                    
 computation:                                                               
    Basic                                 11,527         11,519       11,999
                                    ============  ============= ============
    Diluted                               11,585         11,521       12,001
                                    ============  ============= ============
                                                                            
                                                                            
(1) Includes amortization of employee stock-                                
 based compensation as follows:                                             
    Cost of sales                   $        108  $         100 $        134
    Research and development        $        340  $         346 $        349
    Selling, general and                                                    
     administrative                 $        195  $         193 $        262
                                                                            
                                                                            
                               SUPERTEX, INC.                               
          SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS          
                                (unaudited)                                 
                                                                            
                                              Three Months Ended            
                                   ---------------------------------------- 
                                   (in thousands, except per share amounts) 
                                     June 29,      March 30,     June 30,   
                                       2013          2013          2012     
                                   ------------  ------------  ------------ 
GAAP net income                    $      2,886  $      1,529  $        597 
Adjustment for stock-based                                                  
 compensation included in:                                                  
  Cost of sales                             108           100           134 
  Research and development                  340           346           349 
  Selling, general and                                                      
   administrative                           195           193           262 
                                   ------------  ------------  ------------ 
    Subtotal                                643           639           745 
Tax effect of stock-based                                                   
 compensation                               (14)          (69)          (18)
                                   ------------  ------------  ------------ 
Non-GAAP net income excluding                                               
 employee stock-based compensation $      3,515  $      2,099  $      1,324 
                                   ============  ============  ============ 
                                                                            
Non-GAAP net income per share:                                              
  Basic                            $       0.30  $       0.18  $       0.11 
                                   ============  ============  ============ 
  Diluted                          $       0.30  $       0.18  $       0.11 
                                   ============  ============  ============ 
Shares used in per share                                                    
 computation:                                                               
  Basic                                  11,527        11,519        11,999 
                                   ============  ============  ============ 
  Diluted                                11,585        11,521        12,001 
                                   ============  ============  ============ 
                                                                            
                                                                            
                               SUPERTEX, INC.                               
     SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE      
                                (unaudited)                                 
                                                                            
                                              Three Months Ended            
                              
    ----------------------------------------- 
                                   (in thousands, except per share amounts) 
                                    June 29,      March 30,      June 30,   
                                      2013           2013          2012     
                                  ------------  -------------  ------------ 
Shares used in per share                                                    
 computation:                                                               
  Diluted                               11,585         11,521        12,001 
                                  ============  =============  ============ 
                                                                            
DILUTED:                                                                    
GAAP net income per share         $       0.25  $        0.13  $       0.05 
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 
  Research and development                0.03           0.03          0.03 
  Selling, general and                                                      
   administrative                         0.01           0.02          0.02 
  Tax effect of stock-based                                                 
   compensation                          (0.00)         (0.01)        (0.00)
                                  ------------  -------------  ------------ 
Non-GAAP net income per share                                               
 excluding employee stock-based                                             
 compensation                     $       0.30  $        0.18  $       0.11 
                                  ============  =============  ============ 

  
Corporate Headquarters:
Dr. Henry C. Pao
President & CEO
408/222-8888 
 
 
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