-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VXG5HGIcr3z0Pm1MgbDrI9sxJ7g6I8XhH6iZjRR1NDtAom3pKx9ljdUQjkQJsAOJ K35LcT1BjUyuDqxM/2ZLlw== 0000730000-96-000005.txt : 19960726 0000730000-96-000005.hdr.sgml : 19960726 ACCESSION NUMBER: 0000730000-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960725 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUPERTEX INC CENTRAL INDEX KEY: 0000730000 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 942328535 STATE OF INCORPORATION: CA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12718 FILM NUMBER: 96599010 BUSINESS ADDRESS: STREET 1: 1225 BORDEAUX DR CITY: SUNNYVALE STATE: CA ZIP: 94088-3607 BUSINESS PHONE: 4087440100 MAIL ADDRESS: STREET 1: 1350 BORDEAUX DR CITY: SUNNYVALE STATE: CA ZIP: 94088-3607 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) (X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 1996 or ( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 (No Fee Required) Commission File No. 0-12718 SUPERTEX, INC. (Exact name of Registrant as specified in its Charter) California 94-2328535 (State or other jurisdiction of (IRS Employer Identification #) incorporation or organization) 1235 Bordeaux Drive Sunnyvale, California 94089 (Address of principal executive offices) Registrant's Telephone Number, Including Area Code: (408) 744-0100 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Common Stock Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes (X) No ( ) As of July 23, 1996, 11,992,881 shares of the Registrant's common stock were issued and outstanding. Total number of pages: 10 SUPERTEX, INC. QUARTERLY REPORT - FORM 10Q Table of Contents - ----------------- Page No. -------- PART I - FINANCIAL INFORMATION Item 1. Financial Statements ................................. 3 Consolidated Statements of Income ................... 3 Consolidated Balance Sheets ......................... 4 Consolidated Statements of Cash Flows ............... 5 Notes to Consolidated Financial Statements .......... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations .................. 7 PART II- OTHER INFORMATION Item 6. Exhibits, Financial Statement Schedule and Reports on Form 8-K .............................. 8 PART I - FINANCIAL INFORMATION Item 1. Financial Statements SUPERTEX, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (in thousands, except per share amounts)
Three-months Ended ----------------------------- June 30, 1996 June 30, 1995 ------------- ------------- Net sales $ 12,461 $ 9,157 Cost and expenses: Cost of sales 6,310 4,681 Research and development 1,310 1,282 Selling, general and administrative 1,594 1,263 -------- -------- Total costs and expenses 9,214 7,226 -------- -------- Income from operations 3,247 1,931 Interest income 367 312 Other income, net -- 27 -------- -------- Income before provision for income taxes 3,614 2,270 Provision for income taxes 1,156 704 Net income $ 2,458 $ 1,566 ======== ======== Net income per share $ 0.20 $ 0.13 ======== ======== Shares used in per share computation 12,495 12,246 ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
Jun. 30, 1996 Mar. 31, 1996 ------------- ------------- (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 8,903 $ 16,108 Short term investments 15,144 6,281 Trade accounts receivable, net of allowances of $372 and $559 8,777 7,823 Other receivables 149 81 Inventories 7,152 7,254 Deferred income taxes 1,241 1,241 Prepaid expenses 848 174 -------- -------- Total current assets 42,214 38,962 Property and equipment, net 6,561 6,466 -------- -------- TOTAL ASSETS $ 48,775 $ 45,428 ======== ========
LIABILITIES
Current liabilities: Trade accounts payable $ 2,725 $ 3,357 Accrued salaries, wages and employee benefits 1,728 1,723 Income taxes payable 1,608 638 Other accrued liabilities 443 314 Deferred revenue on shipments to distributors 952 733 -------- -------- Total current liabilities 7,456 6,765 -------- -------- SHAREHOLDERS' EQUITY Preferred stock, no par value -- 10,000,000 shares authorized, none outstanding -- -- Common stock, no par value -- 30,000,000 shares authorized; issued and outstanding 11,991,881 and 11,935,671 shares 18,907 18,709 Retained earnings 22,412 19,954 -------- -------- Total shareholders' equity 41,319 38,663 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 48,775 $ 45,428 ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands)
Three Months Ended ------------------ CASH FLOWS FROM OPERATING ACTIVITIES June 30, 1996 June 30, 1995 ------------- ------------- Net income $ 2,458 $ 1,566 Non-cash adjustments to net income: Depreciation and amortization 435 320 Provision for doubtful accounts and sales returns 278 (10) Provision for excess and obsolete inventories 15 383 Changes in operating assets and liabilities: Accounts and other receivables (1,300) (50) Inventories 87 (514) Prepaid expenses (674) (62) Trade accounts payable and accrued expenses (498) (664) Income taxes payable 970 667 Deferred revenue on shipments to distributors 219 90 ------- ------- Total adjustments (468) 160 ------- ------- Net cash provided by operating activities 1,990 1,726 ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (530) (484) Purchases of short term investments (15,137) (11,502) Proceeds from maturities of short term investments 6,274 10,000 ------- ------- Net cash used in investing activities (9,393) (1,986) ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES Stock options exercised 198 1 ------- ------- Net cash provided by financing activities 198 1 ------- ------- NET DECREASE IN CASH AND CASH EQUIVALENTS (7,205) (259) CASH AND CASH EQUIVALENTS: Beginning of period 16,108 4,437 ------- ------- End of period $ 8,903 $ 4,178 ======= ======= See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - ------ In the opinion of management, the unaudited financial statements for the three months ended June 30, 1996 and 1995 include all adjustments (consisting of normal recurring adjustments) necessary for fair presentation of financial condition and results of operations for those periods in accordance with generally accepted accounting principles. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles. These financial statements should be read in conjunction with the audited financial statements of Supertex, Inc. for the fiscal year ended March 31, 1996, which were included in the Annual Report on Form 10-K (File Number 0-12718). Interim results are not necessarily indicative of results for the full fiscal year. Inventories consisted of (in thousands): June 30, 1996 March 31, 1996 ------------- -------------- (unaudited) Finished goods .............................. $ 1,664 $ 1,366 Work-in-process ............................. 4,276 4,122 Raw materials ............................... 1,212 1,766 ------- ------- $ 7,152 $ 7,254 ======= ======= During October 1995, the Financial Accounting Standards Board issued Statement No. 123, "Accounting for Stock-Based Compensation" (SFAS 123), which establishes a fair value based method of accounting for stock-based compensation plans. The Company is currently following the requirements of Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees." The Company plans to adopt SFAS 123 during fiscal 1997 utilizing the disclosure alternative. During March 1995, the Financial Accounting Standards Board issued Statement No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of" (SFAS 121), which requires the Company to review for impairment of long-lived assets, certain identifiable intangibles and goodwill related to those assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. SFAS 121 will become effective for the Company's 1997 fiscal year. The Company does not expect SFAS 121 to have a material impact on the Company's financial condition or results of operations. PART I - FINANCIAL INFORMATION Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Certain Factors - This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of the risk factors set forth below and elsewhere in this report. The Company's sales are concentrated in the high voltage semiconductor components industry, which is highly competitive and rapidly changing. Significant technological changes in the industry, changes in customer requirements or the emergence of competitor products with new capabilities or technologies could affect the Company's operating results adversely. The Company currently buys all of its silicon wafers, an integral component of its products, from one supplier. Failure by this supplier to satisfy the Company's requirements on a timely basis at competitive prices could cause a delay in manufacturing and a possible loss of revenues, which would affect operating results adversely. Results of Operations Net Sales - Net sales for the quarter ended June 30, 1996 of $12,461,000 were up 36% from $9,157,000 of the same period last year. Sales of new products and continued strength in existing products in the Company's targeted markets of medical ultrasound imaging, telecommunications, and flat panel displays contributed to this increase. Gross Profit - Gross profit for the quarter was $6,151,000, compared with $4,476,000 in the same quarter of last year. Manufacturing costs, at 51% of net sales for the first quarter of both years, has been relatively stable due to cost controls. Research and Development - Research and development expenses were $1,310,000 this year as compared with $1,282,000 last year. As a percentage of net sales, research and development expenses dropped from 14% to 11% as some new products were transferred to production. The Company intends to continue to invest heavily in its new product and process development efforts. Selling, General and Administrative - Expenses for selling, general and administrative were $1,594,000, or 13% of net sales, compared with $1,263,000, or 14% of net sales, in the last fiscal year. The dollar increase in this category was due to a slight increase in payroll and related benefits as a result of an increase in headcount, as well as an increase in sales commissions from the increased business activities. Interest Income - Interest and other income for this period were $367,000 compared with $339,000 last year. Increased cash available for investments, offset by slightly lower interest rates contributed to this small increase in interest income. There was no other income for this period. Provision for Income Taxes - The Company's effective tax rate for the three months ended June 30, 1996 was 32%, an increase from 31% for the same period of last fiscal year. Liquidity and Capital Resources - On June 30, 1996, the Company had $24,047,000 in cash, cash equivalents and short term investments, compared with $22,389,000 on March 31, 1996. This increase is mostly due to positive cash flow from operating activities consisting principally of net income and an increase in liability accounts, and partially offset by an increase in receivables. Net cash used in investing activities in the first quarter of 1996 was $9,393,000, which consisted mainly of purchases of short-term investments. Net cash provided by financing activities was $198,000 from the proceeds of stock option exercises. The Company anticipates that available funds and cash expected to be generated from operations will be sufficient to meet cash and working capital requirements through the end of fiscal year 1997. The Company expects to spend approximately $11,700,000 for capital acquisitions during fiscal year 1997. Recent Accounting Pronouncements - During October 1995, the Financial Accounting Standards Board issued Statement No. 123, "Accounting for Stock-Based Compensation" (SFAS 123), which establishes a fair value based method of accounting for stock-based compensation plans. The Company is currently following the requirements of Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees". The Company plans to adopt SFAS 123 during fiscal 1997 utilizing the disclosure alternative. During March 1995, the Financial Accounting Standards Board issued Statement No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of" (SFAS 121), which requires the Company to review for impairment of long-lived assets, certain identifiable intangibles and goodwill related to those assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. SFAS 121 will become effective for the Company's 1997 fiscal year. The Company does not expect SFAS 121 to have a material impact on the Company's financial condition or results of operations. PART II - OTHER INFORMATION Item 6. - Exhibits and Reports on Form 8-K (a) Exhibits 11.1 Statement Regarding Computation of Net Income Per Share 27.1 Financial Data Schedule (b) Reports on Form 8-K. None. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SUPERTEX, INC. (Registrant) Date: July 24, 1996 By: /s/ Henry C. Pao --------------------- Dr. Henry C. Pao, President (Principal Executive and Financial Officer) Exhibit 11.1 Supertex, Inc. Statement Regarding Computation of Net Income Per Share (in thousands, except per share data)
Three Months Ended June 30, 1996 1995 ------ ------ (unaudited) PRIMARY: Weighted Average Shares Outstanding 11,965 11,895 Common Stock Equivalents 530 351 ------- ------- Total common and common equivalent shares 12,495 12,246 ======= ======= Net income $ 2,458 $ 1,566 ======= ======= Net income per share $ 0.20 $ 0.13 ======= ======= FULLY DILUTED: Weighted Average Shares Outstanding 11,965 11,895 Dilutive employee stock options 530 373 ------- ------- Total common and common equivalent shares 12,495 12,268 ======= ======= Net income $ 2,458 $ 1,566 ======= ======= Net income per share $ 0.20 $ 0.13 ======= ======= Net income per share in the consolidated financial statements is presented under the primary basis as the effect of dilution under the fully diluted basis is not material.
EX-27 2 ARTICLE 5 FINANCIAL DATA SCHEDULE FOR 1ST QTR. 10-Q
5 1,000 3-MOS MAR-30-1997 JUN-30-1996 8,903 0 9,149 372 7,152 42,214 18,704 12,143 48,775 7,456 0 0 0 18,907 22,412 48,775 12,461 12,461 6,310 9,214 0 12 0 3,614 1,156 2,458 0 0 0 2,458 .20 .20
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