-----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, QZmBYaptOhWq3jjoHEdE0YR+2+Z2e74PqvF6IhggH8SnY5Nr6hYI6lbtad0Do4BV uUNhGFsvWxc7WhQOHIyayw== 0000730000-97-000006.txt : 19970731 0000730000-97-000006.hdr.sgml : 19970731 ACCESSION NUMBER: 0000730000-97-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970730 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: 97648411 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, 1997 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 15, 1997, 12,379,393 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 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 ............................. 9 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, ------- 1997 1996 ---- ---- Net sales $ 12,313 $ 12,461 -------- -------- Cost and expenses: Cost of sales 6,680 6,310 Research and development 1,376 1,310 Selling, general and administrative 1,634 1,594 -------- -------- Total costs and expenses 9,690 9,214 -------- -------- Income from operations 2,623 3,247 Interest income 343 367 Other income, net 28 -- -------- -------- Income before provision for income taxes 2,994 3,614 Provision for income taxes 1,018 1,156 -------- -------- Net income $ 1,976 $ 2,458 ======== ======== Net income per share $ 0.16 $ 0.20 ======== ======== Shares used in per share computation 12,379 12,495 ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
Jun. 30, 1997 Mar. 31, 1997 ------------- ------------- (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 20,546 $ 19,166 Short term investments 4,644 4,497 Trade accounts receivable, net of allowances of $601 and $525 9,920 9,337 Other receivables 180 154 Inventories 9,459 9,249 Deferred income taxes 1,834 1,834 Prepaid expenses 458 418 -------- -------- Total current assets 47,041 44,655 Property and equipment, net 12,252 11,753 -------- -------- TOTAL ASSETS $ 59,293 $ 56,408 ======== ========
LIABILITIES
Current liabilities: Trade accounts payable $ 3,704 $ 3,813 Accrued salaries, wages and employee benefits 2,452 2,499 Income taxes payable 1,094 166 Other accrued liabilities 312 366 Deferred revenue on shipments to distributors 1,249 1,077 Total current liabilities 8,811 7,921 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 12,379,293 and 12,047,031 shares 20,321 20,302 Retained earnings 30,161 28,185 -------- -------- Total shareholders' equity 50,482 48,487 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 59,293 $ 56,408 ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)
Three Months Ended ------------------ June 30, 1997 June 30, 1996 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,976 $ 2,458 -------- -------- Non-cash adjustments to net income: Depreciation and amortization 526 435 Provision for doubtful accounts and sales returns 459 278 Provision for excess and obsolete inventories (71) 15 Loss on disposal of assets 1 0 Changes in operating assets and liabilities: Accounts and other receivables (1,068) (1,300) Inventories (139) 87 Prepaid expenses (40) (674) Trade accounts payable and accrued expenses (210) (498) Income taxes payable 928 970 Deferred revenue on shipments to distributors 172 219 -------- -------- Total adjustments 558 (468) -------- -------- Net cash provided by operating activities 2,534 1,990 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (1,026) (530) Purchases of short term investments (4,147) (15,137) Proceeds from maturities of short term investments 4,000 6,274 -------- -------- Net cash used in investing activities (1,173) (9,393) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Stock options exercised 19 198 -------- -------- Net cash provided by financing activities 19 198 -------- -------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,380 (7,205) CASH AND CASH EQUIVALENTS: Beginning of period 19,166 16,108 -------- -------- End of period $ 20,546 $ 8,903 ======== ======== 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, 1997 and 1996 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, 1997, 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, 1997 March 31, 1997 ------------- -------------- (unaudited) Finished goods ............................ $ 2,270 $ 1,656 Work-in-process ........................... 6,022 5,993 Raw materials ............................. 1,167 1,600 ------- ------- $ 9,459 $ 9,249 ======= ======= Recent Accounting Pronouncements In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share" (SFAS 128), which specifies the computation, presentation and disclosure requirements for earnings per share. SFAS 128 supersedes Accounting Principles Board Opinion No. 15 and is effective for financial statements issued for periods ending after December 15, 1997. SFAS 128 requires restatement of all prior-period earnings per share data presented after the effective date. SFAS 128 will not have a material impact on the Company's financial position, results of operations or cash flows. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130). SFAS 130 establishes standards for reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined as "the change in equity of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners." SFAS 130 is effective for fiscal years beginning after December 15, 1997, and reclassification of financial statements for earlier periods provided for comparative purposes is required. SFAS 130 is not expected to have a material impact on the Company's financial position, results of operations or cash flows. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information" (SFAS 131). SFAS 131 establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to shareholders. SFAS 131 generally supersedes Statement of Financial Accounting Standards No. 14, "Financial Reporting for Segments of a Business Enterprise." Under SFAS 131, operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally. SFAS 131 is effective for financial statements for periods beginning after December 15, 1997, and restatement of comparative information for earlier years is required. However, SFAS 131 is not required to be applied to interim financial statements in the initial year of application. SFAS 131 will not have a material impact on the Company's financial position, results of operations or cash flows. 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 21 E of the Securities Exchange 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 industry in which the Company competes is characterized by extreme rapid changes in technology and frequent new product introductions. The Company believes that its long-term growth will depend largely on its ability to continue to enhance existing products and to introduce new products and features that meet the continually changing requirements of customers, as well as timely capacity expansions. While the Company has invested heavily in new products, new processes and new capacities, there can be no assurance that it can continue to introduce new products, new processes and new capacities on a timely basis or that certain of its products, processes and capacities will not be rendered noncompetitive or obsolete by its competitors. Results of Operations Net Sales: Net sales for the quarter ended June 30, 1997 were $12,313,000, a slight decrease of 1% from $12,461,000 of the same period last year, primarily due to a different product mix that caused capacity constraints. Internal and external capacity expansions are behind schedule, but are expected to contribute in the second half of the fiscal year. Gross Profit: Gross profit for the quarter was $5,633,000, compared with $6,151,000 in the same quarter of last year. As a percent of net sales, manufacturing costs increased from 51% to 54%, primarily resulting from inefficiencies as the Company expedited its production flow in order to catch up with its delivery delinquencies. Internal capacity expansion increased depreciation expense. Research and Development: Research and development expenses were flat at $1,376,000 for the quarter ended June 30, 1997 as compared with $1,310,000 for the same quarter of last year or 11% of net sales for the first quarter of both years. The Company expects that research and development expenses will increase during this fiscal year. Selling, General and Administrative: Expenses for selling, general and administrative were flat at $1,634,000, or 13% of net sales, compared with $1,594,000, also 13%, in the same quarter of last fiscal year. The dollar increase in this category was due to a slight increase in payroll expenses as a result of headcount increase. Interest and Other Income: Interest and other income for this period were $371,000 compared with $367,000 last year. Higher amount of funds available for investments contributed to this small increase in interest and other income. Provision for Income Taxes: The Company's effective tax rate for the three months ended June 30, 1997 was 34%, a 2% increase from 32% for the same period of last fiscal year. Liquidity and Capital Resources: On June 30, 1997, the Company had $25,190,000 in cash, cash equivalents and short term investments, compared with $23,663,000 on March 31, 1997. This increase is mostly due to positive cash flow from operating activities of $2,534,000 consisting principally of net income of $1,976,000 plus depreciation of $526,000 and an increase in liability accounts of $890,000, and partially offset by an increase in receivables of $1,068,000. Net cash used in investing activities in the first quarter of 1997 was $1,173,000 which consisted mainly of purchases of property and equipment. Net cash provided by financing activities was $19,000 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 1998. The Company expects to spend approximately $6,362,000 for capacity expansion during fiscal year 1998. Recent Accounting Pronouncements: In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share" (SFAS 128), which specifies the computation, presentation and disclosure requirements for earnings per share. SFAS 128 supersedes Accounting Principles Board Opinion No. 15 and is effective for financial statements issued for periods ending after December 15, 1997. SFAS 128 requires restatement of all prior-period earnings per share data presented after the effective date. SFAS 128 will not have a material impact on the Company's financial position, results of operations or cash flows. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130). SFAS 130 establishes standards for reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined as "the change in equity of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners." SFAS 130 is effective for fiscal years beginning after December 15, 1997, and reclassification of financial statements for earlier periods provided for comparative purposes is required. SFAS 130 is not expected to have a material impact on the Company's financial position, results of operations or cash flows. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information" (SFAS 131). SFAS 131 establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to shareholders. SFAS 131 generally supersedes Statement of Financial Accounting Standards No. 14, "Financial Reporting for Segments of a Business Enterprise." Under SFAS 131, operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally. SFAS 131 is effective for financial statements for periods beginning after December 15, 1997, and restatement of comparative information for earlier years is required. However, SFAS 131 is not required to be applied to interim financial statements in the initial year of application. SFAS 131 will not have a material impact on the Company's financial position, results of operations or cash flows. 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 30, 1997 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 (unaudited) (in thousands, except per share data)
Three Months Ended, June 30, 1997 1996 ------ ------ PRIMARY: Weighted Average Shares Outstanding 12,050 11,965 Common Stock Equivalents 329 530 ------- ------- Total common and common equivalent shares 12,379 12,495 ======= ======= Net income $ 1,976 $ 2,458 ======= ======= Net income per share $ 0.16 $ 0.20 ======= ======= FULLY DILUTED: Weighted Average Shares Outstanding 12,050 11,985 Dilutive employee stock options 329 530 ------- ------- Total common and common equivalent shares 12,379 12,495 ======= ======= Net income $ 1,976 $ 2,458 ======= ======= Net income per share $ 0.16 $ 0.20 ======= ======= 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-31-1998 JUN-30-1997 20,546 0 10,521 601 9,459 47,041 26,350 14,098 59,293 8,811 0 0 0 20,321 30,161 59,293 12,313 12,313 6,680 9,690 0 87 0 2,995 1,018 1,976 0 0 0 1,976 .16 .16
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