Supertex, Inc. (NASDAQ: SUPX) today reported financial results for
the third fiscal quarter ended December 29, 2012. Net sales for the
third fiscal quarter were $14,373,000, a 10% decrease compared to
the prior quarter of $15,919,000 and a 2% increase compared to
$14,066,000 in the same quarter last year. On a GAAP basis, net
income in the third fiscal quarter was $1,431,000 or $0.12 per
diluted share, as compared with $690,000 or $0.06 per diluted share
in the prior fiscal quarter, and $96,000 or $0.01 per diluted share
in the same quarter of the prior fiscal year.
For the nine months ended December 29, 2012, net sales were
$46,351,000 compared to $49,084,000 for the same period of the
prior fiscal year, and on a GAAP basis, net income was $2,718,000,
or $0.23 per diluted share, as compared with $3,476,000, or $0.28
per diluted share, in the same period of the prior fiscal year.
Non-GAAP earnings per diluted share for the third quarter of
fiscal 2013 were $0.18 excluding pre-tax employee stock-based
compensation of $648,000, compared with $0.12 in the prior quarter,
excluding pre-tax employee stock-based compensation of $769,000,
and $0.07 in the same quarter of the prior fiscal year, excluding
pretax employee stock-based compensation of $821,000. For the nine
months ended December 29, 2012, non-GAAP earnings per diluted share
were $0.41, excluding pre-tax employee stock-based compensation of
$2,162,000, as compared to $0.45 for the same period of the prior
fiscal year, excluding pre-tax employee stock-based compensation of
$2,243,000.
"Sales in our fiscal third quarter were adversely affected by a
large order push-out by our high-end computer monitor customer and
a delay by our major printer head driver customer in the ramp-up of
production of its new product, as well as a normal seasonality dip
in our medical ultrasound products," stated Dr. Henry C. Pao,
President and CEO. "In LED backlighting our new driver, capable of
+/- 2% current accuracy, which is best in class, began ramping up
production by a major TV OEM. In LED general lighting our driver
for fluorescent tube replacement began shipping in higher volume,
and design activities are robust. For our fourth fiscal quarter
ending March 30, 2013, we are forecasting our overall sales to be
flat to down 3% sequentially, primarily due to expected seasonal
decline in medical ultrasound sales as our customers would normally
balance their inventories this quarter. This is expected to be
partially offset by increased sales of our new LED backlight driver
for TVs, the production ramp-up by our printer head driver customer
of its new product, and the resumption of deliveries for our
high-end computer monitor customer. We have several new product
launches planned for the March quarter including two high voltage
analog switches and two high voltage pulsers for medical
ultrasound, and two LED drivers for general lighting and
backlighting. Sales are growing of several of our recently
introduced products which had been well received by customers."
Dr. Pao commented further, "Gross margin for the third fiscal
quarter improved by five percentage points from the prior quarter
to 51%, reflecting the benefit of higher wafer fab capacity
utilization during the previous two quarters. Operating expense
also improved from the prior quarter, primarily due to a lesser
increase in the market value of our nonqualified deferred
compensation plan, which has no impact on our overall net income
due to a corresponding offset in other income. We recorded a tax
benefit of $0.3 million in the third fiscal quarter versus a tax
expense of $0.3 million in the prior quarter. During the quarter,
cash generated from operating activities was $4.8 million. We paid
a $1.00 per share special dividend totaling $11.5 million, and we
repurchased approximately 95,000 shares of our stock for $1.7
million. Since we announced the stock repurchase program at the end
of January 2011, we have bought back approximately 1,671,000 shares
for a total of $32.1 million through December 29th."
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 anticipation that in the fourth fiscal
quarter sales will be flat to down 3% sequentially due to an
expected seasonal sales dip in medical ultrasound products
partially offset by increased sales of LED and printer head
drivers, our belief that sequential reductions in revenue from our
medical ultrasound products were due to seasonality, and our
expectation of launching several significant new products in the
fourth fiscal quarter.
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, 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 January 22, 2013, following the earnings release.
President and CEO, Dr. Henry C. Pao, and CFO, Phil Kagel, will
present an overview of the third 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, February 21, 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 operation
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)
December 29, March 31,
2012 2012
------------- -------------
(in thousands)
ASSETS
Cash and cash equivalents $ 16,844 $ 19,860
Short term investments 120,034 111,137
Trade accounts receivable, net 5,743 8,021
Inventories 11,427 14,438
Deferred tax assets 7,450 7,529
Prepaid income taxes 3,231 3,032
Prepaid expenses and other current assets 5,123 6,786
------------- -------------
Total current assets 169,852 170,803
Long term investments 13,500 25,900
Property, plant and equipment, net 4,416 4,941
Other assets 818 621
Deferred tax assets, noncurrent 5,291 5,375
------------- -------------
TOTAL ASSETS $ 193,877 $ 207,640
============= =============
LIABILITIES
Trade accounts payable $ 2,916 $ 1,994
Accrued salaries and employee benefits 12,688 12,434
Other accrued liabilities 818 615
Deferred revenue 2,069 2,560
Income taxes payable 90 23
------------- -------------
Total current liabilities 18,581 17,626
Income taxes payable, noncurrent 3,702 4,161
Deferred tax liabilities, noncurrent 127 -
Other accrued liabilities, noncurrent 571 561
------------- -------------
Total liabilities 22,981 22,348
SHAREHOLDERS' EQUITY
Common stock 67,696 68,031
Accumulated other comprehensive loss (808) (1,345)
Retained earnings 104,008 118,606
------------- -------------
Total shareholders' equity 170,896 185,292
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 193,877 $ 207,640
============= =============
SUPERTEX, INC.
CONSOLIDATED INCOME STATEMENT INFORMATION
(unaudited)
Three Months Ended Nine Months Ended
--------------------------------- ---------------------
(in thousands, except per share amounts)
December September December December December
29, 2012 29, 2012 31, 2011 29, 2012 31, 2011
---------- ---------- ---------- ---------- ----------
Net sales $ 14,373 $ 15,919 $ 14,066 $ 46,351 $ 49,084
Cost of sales(1) 7,057 8,571 8,708 24,193 26,132
---------- ---------- ---------- ---------- ----------
Gross profit 7,316 7,348 5,358 22,158 22,952
Research and
development(1) 3,440 3,556 3,480 10,482 10,514
Selling, general
and
administrative(1) 3,113 3,449 3,269 9,946 9,226
---------- ---------- ---------- ---------- ----------
Income (loss) from
operations 763 343 (1,391) 1,730 3,212
Interest and other
income, net 412 616 784 1,230 567
---------- ---------- ---------- ---------- ----------
Income (loss)
before income
taxes 1,175 959 (607) 2,960 3,779
(Benefit from)
Provision for
income taxes (256) 269 (703) 242 303
---------- ---------- ---------- ---------- ----------
Net income $ 1,431 $ 690 $ 96 $ 2,718 $ 3,476
========== ========== ========== ========== ==========
Net income per
share:
Basic $ 0.12 $ 0.06 $ 0.01 $ 0.23 $ 0.28
========== ========== ========== ========== ==========
Diluted $ 0.12 $ 0.06 $ 0.01 $ 0.23 $ 0.28
========== ========== ========== ========== ==========
Shares used in per
share computation:
Basic 11,567 11,779 12,063 11,782 12,439
========== ========== ========== ========== ==========
Diluted 11,568 11,782 12,066 11,783 12,450
========== ========== ========== ========== ==========
(1) Includes amortization of employee stock-based compensation as follows:
Cost of sales $ 108 $ 130 $ 161 $ 372 $ 434
Research and
development $ 318 $ 335 $ 352 $ 1,002 $ 928
Selling, general
and
administrative $ 222 $ 304 $ 308 $ 788 $ 881
SUPERTEX, INC.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(unaudited)
Three Months Ended Nine Months Ended
---------------------------------- ----------------------
(in thousands, except per share amounts)
December September December December December
29, 2012 29, 2012 31, 2011 29, 2012 31, 2011
---------- ---------- ---------- ---------- ----------
GAAP net income $ 1,431 $ 690 $ 96 $ 2,718 $ 3,476
Adjustment for
stock-based
compensation
included in:
Cost of sales 108 130 161 372 434
Research and
development 318 335 352 1,002 928
Selling, general
and
administrative 222 304 308 788 881
---------- ---------- ---------- ---------- ----------
Subtotal 648 769 821 2,162 2,243
Tax effect of
stock-based
compensation (11) (18) (19) (47) (67)
---------- ---------- ---------- ---------- ----------
Non-GAAP net
income excluding
employee stock-
based
compensation $ 2,068 $ 1,441 $ 898 $ 4,833 $ 5,652
========== ========== ========== ========== ==========
Non-GAAP net
income per
share:
Basic $ 0.18 $ 0.12 $ 0.07 $ 0.41 $ 0.45
========== ========== ========== ========== ==========
Diluted $ 0.18 $ 0.12 $ 0.07 $ 0.41 $ 0.45
========== ========== ========== ========== ==========
Shares used in
per share
computation:
Basic 11,567 11,779 12,063 11,782 12,439
========== ========== ========== ========== ==========
Diluted 11,568 11,782 12,066 11,783 12,450
========== ========== ========== ========== ==========
SUPERTEX, INC.
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE
(unaudited)
Three Months Ended Nine Months Ended
---------------------------------- ----------------------
(in thousands, except per share amounts)
December September December December December
29, 2012 29, 2012 31, 2011 29, 2012 31, 2011
---------- ---------- ---------- ---------- ----------
Shares used in
per share
computation:
Diluted 11,568 11,782 12,066 11,783 12,450
========== ========== ========== ========== ==========
DILUTED:
GAAP net income
per share $ 0.12 $ 0.06 $ 0.01 $ 0.23 $ 0.28
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 0.03 0.03
Research and
development 0.03 0.03 0.03 0.08 0.08
Selling, general
and
administrative 0.02 0.02 0.02 0.07 0.07
Provision for
income taxes (0.00) (0.00) (0.00) (0.00) (0.01)
---------- ---------- ---------- ---------- ----------
Non-GAAP net
income per share
excluding
employee stock-
based
compensation $ 0.18 $ 0.12 $ 0.07 $ 0.41 $ 0.45
========== ========== ========== ========== ==========
Corporate Headquarters: Dr. Henry C. Pao President & CEO
408/222-8888
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