SYXI Ixys

IXYS Corporation (Nasdaq:SYXI) today announced that, for its first fiscal quarter ended June 30, 2006, IXYS reported net revenues of $67.7 million, as compared with net revenues of $63.3 million for the same period in the prior fiscal year. Gross profit was $21.9 million, or 32.3% of net revenues, for the quarter ended June 30, 2006, as compared to gross profit of $21.1 million, or 33.4% of net revenues, for the same quarter in the prior fiscal year. Net income for the quarter ended June 30, 2006, was $24.3 million, or $0.68 per diluted share, as compared to $5.1 million, or $0.14 per diluted share, for the same quarter in the prior fiscal year. The results for the quarter ended June 30, 2006 included a credit adjustment of $36.8 million to record the trial court's reduction of the award previously made to LoJack Corporation and related tax effects. Excluding the impact of these adjustments, net income for the quarter ended June 30, 2006 would have been $2.6 million, or $0.07 per share, diluted. "We are pleased to report consecutive sequential revenue growth and sequential increases in our gross margin and gross profit. However our usual operating expenses have increased, in part due to increased R&D investments and compliance expenses. We are experiencing a high demand for our products with record orders taken in the June quarter, creating sequentially again, a record backlog and an increased book-to-bill ratio of 1.18," said Dr. Nathan Zommer, Chief Executive Officer. Uzi Sasson, Chief Financial Officer, said, "This is normally the season when we would experience a weakening in our market because of the summer slowdown, especially in Europe. However, this year we expect our strong backlog to counter this trend and we project our revenues for the September 2006 quarter to be between $67 million and $69 million." IXYS develops and markets primarily high performance power and RF semiconductors and control ICs that are used in controlling and converting electrical power efficiently in power systems for 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. Non-GAAP Financial Information Included above and within the attached schedules are certain non-GAAP financial figures. Management believes non-GAAP net income and non-GAAP net income per share are useful measures of operating performance because they exclude the impact of the litigation provision related to the LoJack litigation and the impact of various adjustments to deferred tax assets, which are in the nature of one-time events. However, these 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 our backlog, book-to-bill ratio and projection of revenues for the September 2006 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 and capacity limits on our ability to manufacture our products, among other things. Further information on other factors that could affect IXYS is detailed and included in IXYS' Form 10-K for the fiscal year ended March 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. -0- *T IXYS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) June 30, March 31, 2006 2005 --------- --------- ASSETS Current assets: Cash and cash equivalents $72,305 $78,505 Accounts receivable, net 45,640 42,774 Other receivables 2,120 1,433 Inventories, net 68,502 60,357 Prepaid expenses and other current assets 3,957 2,688 Deferred income taxes 10,492 25,049 --------- --------- Total current assets 203,016 210,806 Plant and equipment, net 41,826 40,049 Other assets 12,744 12,580 Deferred income taxes 16,699 16,552 --------- --------- Total assets $274,285 $279,987 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of capitalized lease obligations $2,484 $2,255 Current portion of long term loan 1,090 973 Accounts payable 23,194 20,259 Accrued expenses and other current liabilities 30,583 68,504 --------- --------- Total current liabilities 57,351 91,991 Capitalized lease and other long term obligations, net of current portion 14,704 14,447 Pension liabilities 14,015 13,576 --------- --------- Total liabilities 86,070 120,014 --------- --------- Common stock 347 347 Additional paid-in capital 158,680 156,664 Notes receivable from stockholders (58) (59) Retained earnings 23,682 (614) Accumulated other comprehensive income 5,564 3,635 --------- --------- Stockholders' equity 188,215 159,973 --------- --------- Total liabilities and stockholders' equity $274,285 $279,987 ========= ========= IXYS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended ----------------------------- June 30, 2006 June 30, 2005 -------------- ------------- Net revenues $67,741 $63,341 Cost of goods sold 45,857 42,196 -------------- ------------- Gross profit 21,884 21,145 -------------- ------------- Operating expenses: Research, development and engineering 5,108 4,156 Selling, general and administrative 12,056 9,257 Litigation provision (36,827) -- -------------- ------------- Total operating expenses (19,663) 13,413 -------------- ------------- Operating income 41,547 7,732 Other income (expense), net (844) 425 -------------- ------------- Income before income tax provision 40,703 8,157 Provision for income tax expense 16,407 3,018 -------------- ------------- Net income $24,296 $5,139 ============== ============= Net income per share - basic $0.71 $0.15 ============== ============= Weighted average shares used in per share calculation - basic 34,172 33,416 ============== ============= Net income per share - diluted $0.68 $0.14 ============== ============= Weighted average shares used in per share calculation - diluted 35,575 35,985 ============== ============= GAAP reconciliation to non-GAAP (In thousands, except per share amounts) Quarter Ended June 30, 2006 June 30, 2005 -------------- -------------- Net income, as reported (GAAP) $24,296 $5,139 Adjustments to GAAP net income: Litigation provision and related tax effects (21,742) -- -------------- -------------- Non-GAAP net income $ 2,554 $5,139 ============== ============== Net income per share-basic, as reported (GAAP) $ 0.71 $ 0.15 Adjustments to GAAP net income per share-basic: Litigation provision and related tax effects (0.64) -- -------------- -------------- Net income per share-basic, (non-GAAP) $ 0.07 $ 0.15 ============== ============== Net income per share-diluted, as reported (GAAP) $ 0.68 $ 0.14 Adjustments to GAAP net income per share-diluted: Litigation provision and related tax effects (0.61) -- -------------- -------------- Net income per share-diluted, (non-GAAP) $ 0.07 $ 0.14 ============== ============== Weighted average shares used in per share calculation Basic 34,172 33,416 Dilutive weighted average shares 1,403 2,569 -------------- -------------- Diluted 35,575 35,985 *T