-----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, MQFGy/L0b7Y6LHHbHzsHS7Nv41/1zFDqWOMlCXo1S1vi7LaP52+NNvND74kuS+jh huav4rsCWzSYlzNx/0Zu0Q== /in/edgar/work/20000811/0000730000-00-000005/0000730000-00-000005.txt : 20000921 0000730000-00-000005.hdr.sgml : 20000921 ACCESSION NUMBER: 0000730000-00-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUPERTEX INC CENTRAL INDEX KEY: 0000730000 STANDARD INDUSTRIAL CLASSIFICATION: [3674 ] IRS NUMBER: 942328535 STATE OF INCORPORATION: CA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-12718 FILM NUMBER: 693743 BUSINESS ADDRESS: STREET 1: 1235 BORDEAUX DR CITY: SUNNYVALE STATE: CA ZIP: 94089 BUSINESS PHONE: 4087440100 MAIL ADDRESS: STREET 1: 1235 BORDEAUX DR CITY: SUNNYVALE STATE: CA ZIP: 94089 10-Q 1 0001.txt UNITED STATES 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, 2000 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 24, 2000, 12,335,014 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, June 30, 2000 1999 ---- ---- Net sales $ 22,303 $ 16,297 Cost and expenses: Cost of sales 13,389 10,741 Research and development 2,430 2,835 Selling, general and administrative 2,280 1,492 Total costs and expenses 18,099 15,068 Income from operations 4,204 1,229 Interest income 519 415 Other income (expense), net (28) (48) Income before provision for income taxes 4,695 1,596 Provision for income taxes 1,596 527 Net income $ 3,099 $ 1,069 Net income per share: Basic $ 0.25 $ 0.09 Diluted $ 0.24 $ 0.09 Shares used in per share computation: Basic 12,276 12,082 Diluted 13,064 12,212 See accompanying Notes to Unaudited Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED BALANCE SHEETS (unaudited, in thousand)
June 30, 2000 Mar. 31, 2000 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 9,332 $ 22,584 Short-term investments 25,403 11,592 Trade accounts receivable, net of allowances of $1,581 and $1,366 17,948 14,428 Other receivables 531 315 Inventories 14,909 15,083 Deferred income taxes 2,862 2,862 Prepaid expenses 261 440 ------ ------ Total current assets 71,246 67,304 Property, plant and equipment, net 16,181 14,890 Long term investments 2,402 1,402 Intangibles assets, net 926 1,157 Deferred income taxes 1,870 1,870 ------ ------ TOTAL ASSETS $ 92,625 $ 86,623 LIABILITIES Current liabilities: Trade accounts payable $ 9,040 $ 8,395 Accrued salaries, wages and employee benefits 3,822 4,495 Income taxes payable 1,949 353 Other accrued liabilities 637 276 Deferred license revenue 475 -- Deferred revenue on shipments to distributors 899 835 ------ ------ Total current liabilities 16,822 14,354 SHAREHOLDERS' EQUITY Preferred stock, no par value - 10,000 shares authorized, None outstanding -- -- Common stock, no par value - 30,000 shares authorized; issued and outstanding 13,064 and 12,132 shares 23,602 23,167 Retained earnings 52,201 49,102 Total shareholders' equity 75,803 72,269 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 92,625 $ 86,623 See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)
Three Months Ended June 30, 2000 June 30, 1999 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 3,099 $ 1,069 Non-cash adjustments to net income: Depreciation and amortization 1,221 1,461 Provision for doubtful accounts and sales returns 524 350 Provision for excess and obsolete inventories 188 297 Changes in operating assets and liabilities: Accounts and other receivables (4,044) (2,028) Inventories (14) (1,698) Prepaid expenses and other assets (47) 167 Trade accounts payable and accrued expenses 333 1,573 Income taxes payable 1,596 519 Deferred license revenue 475 -- Deferred revenue on shipments to distributors 64 (133) ------ ------ Total adjustments 296 508 ------ ------ Net cash provided by operating activities 3,395 1,577 ------ ------ CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, plant and equipment (2,271) (377) Purchases of short term investments (25,404) (8,682) Proceeds from maturities of short term investments 11,593 -- Purchases of long term investments (1,000) -- ------ ------ Net cash used in investing activities (17,082) (9,059) ------ ------ CASH FLOWS FROM FINANCING ACTIVITIES Stock options exercised 435 132 Repurchase of stock -- (404) ------ ------ Net cash used in financing activities 435 (272) ------ ------ NET DECREASE IN CASH AND CASH EQUIVALENTS (13,252) (7,754) CASH AND CASH EQUIVALENTS: Beginning of period 22,584 28,190 End of period $ 9,332 $ 20,436 See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 In the opinion of management, the unaudited financial statements for the three months ended June 30, 2000 and 1999 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, 2000, 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. Note 2 Inventories consisted of (in thousands):
June 30, 2000 March 31, 2000 Raw materials.......................... $ 1,493 $ 1,088 Work-in-process........................ 10,619 11,652 Finished goods......................... 2,797 2,343 --------- --------- $ 14,909 $ 15,083
Note 3 Net Income per Share: Basic earnings per share ("EPS") is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. A reconciliation of the numerator and denominator of basic and diluted earnings per share is provided as follows (in thousands, except per share amounts).
For Three-months Ended, June 30, 2000 1999 BASIC: Net income $ 3,099 $ 1,069 Weighted average shares outstanding for the period 12,276 12,082 -------- -------- Net income per share $ 0.25 $ 0.09 -------- -------- DILUTED: Net income $ 3,099 $ 1,069 Weighted average shares outstanding for the period 12,276 12,082 Dilutive effect of stock options 788 130 Total 13,064 12,212 -------- -------- Net income per share $ 0.24 $ 0.09 -------- --------
Note 4 Long Term Investments: On June 21, 2000, the Company purchased 1,059,322.03 shares of Series A Preferred Stock of LightConnect, an optical MEMS startup, for $1,000,000. The Company owns 12% of LightConnect's outstanding Series A Preferred Stock shares. The Company has recorded its investment in LightConnect as a long term investment using the cost method of accounting. Note 5 Recent Accounting Pronouncements: In June 1998, the FASB issued Statement of Financial Accounting Standards No. 133, ("SFAS No. 133"), "Accounting for Derivative Instruments and Hedging Activities." SFAS No. 133 establishes new standards of accounting and reporting for derivative instruments and hedging activities. SFAS No. 133 requires that all derivatives be recognized at fair value in the statement of financial position and that the corresponding gains or losses be reported either in the statement of operations or as a component of comprehensive income, depending on the type of hedging relationship that exists. SFAS No. 133 is effective for fiscal years beginning after June 15, 2000. Earlier application is allowed as of the beginning of any quarter beginning after issuance. The Company does not anticipate that the adoption of SFAS 133 will have a material impact on its financial position or results of operations. In March 2000, The Financial Accounting Standards Board ("FASB") issued FIN No. 44 "Accounting for Certain Transactions Involving Stock Compensation an interpretation of APB Opinion No. 25". This interpretation has provisions that are effective on staggered dates, some of which began after December 15, 1998 and others that become effective after June 30, 2000. The adoption of this interpretation did not, and is not expected to have a material impact on the financial statements. In December, 1999, SAB 101 was issued which summarizes the SEC's views in applying generally accepted accounting principles to revenue recognition in financial statements. In June, 2000 SAB 101B was issued to delay the implementation of SAB 101 until the fourth quarter of fiscal year. The Company is currently evaluating the impact SAB 101 will have on its financial position and results of operations. PART I - FINANCIAL INFORMATION Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Cautionary Statement Regarding Forward Looking Statements This 10-Q includes forward-looking statements. These forward-looking statements are not historical facts, and are based on current expectations, estimates, and projections about our industry, our beliefs, our assumptions, and our goals and objectives. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", and "estimates ", and variations of these words and similar expressions, are intended to identify forward-looking statements. An example of such a statement in this 10-Q is that the Company anticipates available funds and expected cash generated from operations to be sufficient to meet cash and working capital requirements through at least the next twelve months. These statements are only predictions, are not guarantees of future performance, and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, and could cause actual results to differ materially form those expressed or forecasted in the forward-looking statements. These risks and uncertainties include those described in "Risk Factors" under Item 7, "Management's' Discussion and Analysis of Financial Condition and Results of Operation" in our Annual Report of Form 10-K for the fiscal year ended March 31, 2000. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. Results of Operations Net Sales Net sales for the quarter ended June 30, 2000 were $22,303,000, a 37% increase compared to $16,297,000 of the same quarter last year. The increase in sales for the comparative three-month period is primarily due to increased sales in the core products, consisting of proprietary products for the telecommunication, imaging and medical electronics industries. Approximately 39% of the Company's net sales for first fiscal quarter were derived from international customers as compared to 35% for the same period in the prior year. The increase in percentage of international sales is primarily due to the increase in our non-foundry core business. All of the Company's international sales were denominated in U.S.dollars. Gross Profit As a percent of sales, the Company's gross margin for the three- month period ended June 30, 2000 was 40%, compared with 34% for the same period of the prior year. The improvement in gross margin is primarily due to economies of scale in the fab operations. Research and Development Research and development expenses decreased 14% to $2,430,000 for the quarter ended June 30, 2000 as compared to $2,835,000 for the same quarter of the prior year. The decrease is primarily due to a non-recurring payment made in the same period last fiscal year of $1,350,000 to Orbit Semiconductor, Inc. under a process development agreement for assisting Supertex to accelerate the process transfer to the new fab. Selling, General and Administrative Expenses for selling, general and administrative were $2,280,000 or 10% of net sales for the quarter ended June 30, 2000 as compared with $1,492,000 or 9% of net sales in the same quarter of the prior year. The dollar increases in selling, general and administrative expenses for the three months were primarily due to increase in data processing software expenses and bad debt reserve corresponding to higher net sales. Interest and Other Income Interest and other income, net for the three-month period ended June 30, 2000 was $491,000 as compared to $367,000 for the same period of the prior year. The increase is primarily due to increased cash available for investments. Provision for Income Taxes The Company's effective tax rate for the three-month ended June 30, 2000 was 34% compared to 33% for the same period of the prior year. Overview Total assets increased to $92,625,000 as of June 30, 2000, up from $86,623,000 at the end of last fiscal year ended March 31, 2000. The increase is due to favorable operating results. Liquidity and Capital Resources On June 30, 2000, the Company had $34,735,000 in cash, cash equivalents, and short-term investments, compared with $34,176,000 on March 31, 2000. Cash flow from operating activities was $3,395,000 consisting principally of net income of $3,099,000. During the three-month period, $2,271,000 was used to purchase equipment and $1,000,000 was used for the purchase of Preferred A stock of LightConnect, an optical MEMS startup. Cash was also generated from stock option exercises of $435,000. The Company anticipates that available funds and expected cash to be generated from operations will be sufficient to meet cash and working capital requirements through at least the next twelve months. Year 2000 Issues. We reviewed and tested our internal programs and noted no issues relating to Year 2000. We have not experienced any problems with our computer systems being unable to recognize appropriate dates related to Year 2000. We are also not aware of any material problems with our customers or suppliers. Accordingly, we do not anticipate incurring material expenses or experiencing any material operational disruption as a result of Year 2000 issues. PART II - OTHER INFORMATION Item 6. - Exhibits and Reports on Form 8-K (a) Exhibits 27.1 Financial Data Schedule (b) Reports on Form 8-K No report on Form 8-K was filed during the quarter for which this Form 10-Q is filed. 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: August 11, 2000 By: /S/ Henry C. Pao ---------------- Henry C. Pao, Ph.D. President (Principal Executive and Financial Officer) EX-27 2 0002.txt ARTICLE 5 FINANCIAL DATA SCHEDULE FOR FIRST FISCAL QTR. 10-Q
5 1,000 3-MOS MAR-31-2001 JUN-30-2000 9,332 25,403 19,529 1,581 14,909 71,246 40,253 24,072 92,625 16,822 0 0 0 23,602 52,201 92,625 22,303 22,303 13,389 18,099 0 76 0 4,695 1,596 3,099 0 0 0 3,099 0.25 0.24
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