For the fiscal year ended March 31, 2007, IXYS reported record net revenues of $285.9 million, an increase of 13.7%, as compared with net revenues of $251.5 million for the prior fiscal year.
A power semiconductor company, IXYS develops and markets high performance power and RF semiconductors and control ICs that are used to improve power conversion efficiency in a range of applications, including telecommunication infrastructure, motor drives, medical systems and transportation. IXYS also serves emerging markets with digital and analog ICs that control flat panel displays, medical instruments and telecommunication products (i.e. VoIP).
Within the renewable energy industry, IXYS supplies chips that control/regulate high voltages between DC energy (windmills/solar panels) and AC energy (U.S. electric grid). In addition, IXYS has developed solar cell arrays and cards for charging portable batteries.
Highlights for the quarter ended March 31, 2007:
-- Record revenues of $74.0 million, marking the fifth consecutive quarter of revenue growth
-- Backlog of $105.2 million
-- Company repurchased about 563,000 shares for $5.2 million
Highlights for the year ended March 31, 2007:
-- Record revenues for the fiscal year
-- Net income rose for the fiscal year, by $34.8 million versus the 2006 fiscal year
-- Company repurchased about 2 million shares for $18.4 million for the fiscal year
Gross profit was $17.9 million, or 24.1% of net revenues, for the quarter ended March 31, 2007, as compared to gross profit of $20.4 million, or 31.6% of net revenues, for the same quarter in the prior fiscal year. Gross profit for the fiscal year ended March 31, 2007 was $84.3 million, or 29.5% of net revenues, as compared to gross profit of $81.7 million, or 32.5% of net revenues, for the prior fiscal year. The bankruptcy of All-American Semiconductor, Inc., a large semiconductor distributor in the U.S., adversely affected gross profit and net income.
Net income for the quarter ended March 31, 2007, was $755,000, or $0.02 per diluted share, as compared to $30.3 million, or $0.85 per diluted share, for the same quarter in the prior fiscal year. Net income for the fiscal year ended March 31, 2007, was $28.7 million, or $0.83 per diluted share, as compared to net loss of $6.1 million, or $0.18 loss per diluted share, for the prior fiscal year.
"We have ended our fiscal year with record revenues -- backed by the strength of our manufacturing strategy and product innovation in Europe and Asia," said Dr. Nathan Zommer, Chief Executive Officer. "We continue to introduce products that address the needs of our core customer markets, while entering developing markets with innovative products. These developments portend business growth and margin growth for the long term."
"Although we stopped shipments to All American prior to their bankruptcy announcement, we had unpaid receivables at the time of the bankruptcy filing. While we participate in the legal proceedings to secure repayment, we must incur a bad debt write-off for the March 2007 quarter. This decision has impacted margins for the quarter and fiscal year," stated Dr. Zommer. "Additionally, we saw a decline in margins resulting primarily from excess inventory charges and cyclical inventory effects inherent in the medical industry."
"Regardless of these outside influences, we achieved a new record for revenues while reducing inventory levels from the December 2006 quarter," noted Dr. Zommer. "Fiscal belt-tightening, along with our consistently strong backlog, gives us confidence that IXYS will return to margin growth. We expect to improve our long term gross margin as we invest in R&D to develop and introduce new products, continue to improve our manufacturing cost structure and reduce our inventory levels."
The corporation repurchased 563,000 IXYS shares for $5.2 million during the March quarter and 2 million IXYS shares for $18.4 million for the fiscal year ended March 31, 2007. Chief Financial Officer Uzi Sasson stated, "We plan to continue buying back shares under our authorized stock buyback program."
"As we introduce new products to fulfill the needs of our core and developing customer base, and in light of the All American bankruptcy, we must build new distributor relationships. We recognize that channel building will take some time. In that vein, we estimate relatively flat revenues for the June 2007 quarter as compared to the March 2007 quarter," stated Mr. Sasson.
ABOUT IXYS
Since its inception in 1983, IXYS Corporation has been developing technology-driven products to improve power conversion efficiency. IXYS is a U.S. pioneer in the development of power semiconductors that effectively monitor electrical voltage to produce maximum effect with the least expenditure of energy.
Diminishing natural resources, demand for cheap energy and environmental directives for energy efficiency represent a significant challenge. IXYS' power semiconductors and mixed-signal integrated circuits can play a vital role in reducing energy costs and consumption -- as their products regulate the amount of energy utilized by everyday products. With a customer base of over 3,000 telecommunications, transportation, industrial, medical and consumer companies, IXYS is a significant provider of power semiconductors in the U.S.
A forerunner in the alternative and renewable energy industry, IXYS focuses on providing power semiconductors for equipment used in harnessing wind and solar power for conversion to the U.S. electrical power grid -- one more way to avoid another 2003 blackout. In addition, IXYS' R&D teams also developed solar cell arrays and cards for charging portable batteries -- with potential applications for traditional alkaline batteries, laptops, cell phones, RFID tags and sensors, to name a few.
IXYS, and its subsidiary companies, offer a diversified product base that addresses worldwide needs for power conversion, electrical efficiency and renewable energy.
Safe Harbor Statement
The foregoing press release contains forward-looking statements, including those related to business and margin growth, the plan to continue buying back shares, our long term margin improvement, R&D investment, improvement in cost structure, reduction in inventory levels and our projection for revenues in the June 2007 quarter. 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, an increase in charges for excess or obsolete inventory or an unexpected increase or leveling of our costs or reduced cash flows, among other things. Further information on other factors that could affect IXYS is detailed and included in IXYS' Form 10-Q for the fiscal quarter ended December 31, 2006, 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.
IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, March 31,
2007 2006
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 54,196 $ 78,505
Accounts receivable, net 42,519 42,774
Other receivables 2,006 1,433
Inventories, net 85,965 60,357
Prepaid expenses and other current assets 1,262 2,688
Deferred income taxes 14,345 25,049
--------- ---------
Total current assets 200,293 210,806
Plant and equipment, net 48,741 40,049
Other assets 11,780 12,580
Deferred income taxes 12,827 16,552
--------- ---------
Total assets $273,641 $279,987
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capitalized lease obligations $ 3,686 $ 2,255
Current portion of notes payable to bank 1,012 973
Accounts payable 19,926 20,259
Accrued expenses and other current liabilities 33,636 68,504
--------- ---------
Total current liabilities 58,260 91,991
Capitalized lease and other long term
obligations, net of current portion 17,772 14,447
Pension liabilities 16,875 13,576
--------- ---------
Total liabilities 92,907 120,014
--------- ---------
Common stock 350 347
Additional paid-in capital 144,149 156,664
Notes receivable from stockholders - (59)
Retained earnings (accumulated deficit) 28,119 (614)
Accumulated other comprehensive income 8,116 3,635
--------- ---------
Stockholders' equity 180,734 159,973
--------- ---------
Total liabilities and stockholders' equity $273,641 $279,987
========= =========
IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
March 31, March 31,
------------------ -------------------
2007 2006 2007 2006
------------------ -------------------
Net revenues $74,018 $ 64,425 $285,908 $251,487
Cost of goods sold 56,168 44,043 201,577 169,792
------------------ -------------------
Gross profit 17,850 20,382 84,331 81,695
------------------ -------------------
Operating expenses:
Research, development and
engineering 5,186 4,324 20,105 17,523
Selling, general and
administrative 11,567 10,502 44,729 38,371
Litigation provision 303 (8,690) (29,435) 42,810
------------------ -------------------
Total operating expenses 17,056 6,136 35,399 98,704
------------------ -------------------
Operating income (loss) 794 14,246 48,932 (17,009)
Other income (expense), net 219 2,040 (1,288) 3,992
------------------ -------------------
Income (loss) before income
tax provision 1,013 16,286 47,644 (13,017)
Provision (benefit from) for
income tax expense 258 (14,015) 18,911 (6,911)
------------------ -------------------
Net income (loss) $ 755 $ 30,301 $ 28,733 $ (6,106)
================== ===================
Net income (loss) per share -
basic $ 0.02 $ 0.89 $ 0.86 $ (0.18)
================== ===================
Weighted average shares used in
per share calculation - basic 32,659 34,015 33,505 33,636
================== ===================
Net income (loss) per share -
diluted $ 0.02 $ 0.85 $ 0.83 $ (0.18)
================== ===================
Weighted average shares used in
per share calculation -
diluted 33,923 35,792 34,784 33,636
================== ===================
Contact:
IXYS Corporation
Uzi Sasson, CFO, 408-982-0700