EX-99.1 CHARTER 3 supxprfinal.txt EXHIBIT 99.1 EXHIBIT 99.1 SUPERTEX, INC. PRESS RELEASE FOR IMMEDIATE RELEASE Contact: Dr. Henry C. Pao July 14, 2003 President & CEO Tel: 408-222-8888 Fax: 408-222-4800 Email: investors@supertex.com SUPERTEX REPORTS FIRST FISCAL QUARTER RESULTS Sunnyvale, CA (July 14, 2003) - Supertex, Inc. (NASDAQ: SUPX) reported that for the first fiscal quarter ended June 28, 2003, net sales decreased 6% from $13,277,000 to $12,479,000 compared to the same quarter of the prior year, and decreased 14% from the prior quarter of $14,530,000. Net income increased 124% to $776,000 or $0.06 per share from $347,000 or $0.03 per share on a diluted basis from the year ago quarter, but decreased 29% from $1,098,000 or $0.09 per share on a diluted basis in the prior quarter. Dr. Henry C. Pao, President & CEO, commented, "We did not make our sales plan for the quarter due to several unexpected situations. Two major cellular phone product customers experienced reduced sales of their handset products and therefore they purchased less of our product than forecast, which they attributed in part to severe acute respiratory syndrome (SARS). We do not expect their business to pick up for the near future and therefore expect their demand for our products to continue at its reduced level. In addition, our largest medical product customer moved its third party assembly offshore, resulting in a hiatus in its demand for our components due to qualification requirements on initial builds. We expect sales to this customer to resume this summer to the previous run rates. Lastly, the needed financing of a large consumer imaging product customer was delayed until the end of the quarter, which caused the customer to purchase less of our products in the quarter. We expect shipments to resume to this customer at the former rates in the coming months as well. Our inventory increased $803,000, primarily because some of the anticipated turns business did not materialize. Despite our sales shortfall, gross margin remained at 42% compared to the prior quarter, and improved from 33% year-over-year despite the low production capacity utilization. Cash, cash equivalents and short-term investments increased by $3.1 million during the quarter. Although design-wins of our new products have continued at a good rate, our ability to forecast the actual demand for our products has been hampered by the weak general economy. As we expect a large portion of our business to remain turns business for the second fiscal quarter, it is difficult to forecast any significant improvement in our revenues at this time. As a result, although we expect our revenue for the second fiscal quarter to be in the range of our revenue for the last several quarters, we still believe that our second fiscal half will show sequential growth. This optimism is based on customer projections especially for our newer products as our design-win activities have been strong. 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 include our expectations as to our revenues in the next quarter and the second half of this fiscal year and our sales to various particular customers during the near term and our expectation that a large portion of our business will continue to be turns business. 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 customers implement our products in their new products, whether demand materializes for our customers' new products and continues for their current products, whether we timely release into production our planned new products and the demand for such newly-released products, whether there is any price erosion and whether competitors attempt to second source our products, and whether our customers continue to have difficulty forecasting demand for their products 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. These forward-looking statements are based on our goals and objectives and our assumptions about, and assessment of, the future and may or may not prove true. They speak only as to the date of this release, and we undertake no obligation to publicly release updates or revisions to these statements. Conference Call Details We will host a conference call at 2:30 p.m. PDT (5:30 p.m. EDT) on July 14, 2003, following this earnings release. President and CEO, Dr. Henry C. Pao and Executive Vice President, Richard E. Siegel will present an overview of the first fiscal quarter results, discuss current business conditions and then respond to questions. The call is available live to listen or ask questions to any interested party by dialing 800-223-9488 (domestic) or 785-832-1508 (toll, international) at least 5 minutes before the scheduled start time, and ask to be connected to the Supertex Quarterly Earnings Release Call. A recorded replay will be available until 11:59 p.m., July 28, 2003 by dialing 800-283-8486 (domestic) or 402-220-0869 (toll, international). The conference call is also available live via the Internet by logging on to the following URL: http://www.firstcallevents.com/service/ajwz384621622gf12.html. If you are unable to participate during the live web-cast, the call will be archived at www.supertex.com. About Supertex Supertex, Inc. is a publicly held mixed signal semiconductor manufacturer, focused in high voltage interface products for use in the telecommunications, networking systems, flat panel displays, medical and industrial electronics industries. Supertex product, corporate and financial information is readily available at www.supertex.com. For further information, contact Dr. Henry C. Pao at Supertex, Incorporated, 1235 Bordeaux Drive, Sunnyvale, California 94089, (408) 222-8888 or visit our Website at http://www.supertex.com SUPERTEX, INC. CONSOLIDATED INCOME STATEMENT INFORMATION (unaudited) Three-months Ended June 30, (in thousands, except per share amounts) 2003 2002 ---- ---- Net sales $ 12,479 $ 13,277 Cost of sales 7,289 8,849 --------- --------- Gross profit 5,190 4,428 Research and development 2,230 2,318 Selling, general and administrative 2,390 1,835 --------- --------- Income from operations 570 275 Interest and other income, net 554 251 --------- --------- Income before income taxes 1,124 526 Provision for income taxes 348 179 --------- --------- Net income $ 776 $ 347 --------- --------- Net income per share Basic $ 0.06 $ 0.03 --------- --------- Diluted $ 0.06 $ 0.03 --------- --------- Shares used in per share computation Basic 12,686 12,575 --------- --------- Diluted 12,907 12,935 --------- --------- SUPERTEX, INC. CONSOLIDATED BALANCE SHEET INFORMATION (unaudited) June 30, 2003 March 31, 2003 (in thousands) ASSETS Cash and cash equivalents $ 58,695 $ 60,931 Short term investments 9,314 3,945 Accounts receivable, net 6,981 10,134 Inventories, net 15,385 14,582 Deferred income taxes 4,030 4,030 Other current assets 474 575 --------- --------- Total current assets 94,879 94,197 Property, plant and equipment 11,565 12,104 Long term investments 97 97 Deferred income taxes 2,273 2,273 --------- --------- TOTAL ASSETS $ 108,814 $ 108,671 LIABILITIES Trade accounts payable and accrued liabilities $ 2,598 $ 3,572 Accrued salaries, wages and employee benefits 6,522 6,784 Other accrued liabilities 412 485 Deferred revenue 2,245 2,001 Income taxes payable 3,171 3,304 --------- --------- Total current liabilities 14,948 16,146 SHAREHOLDERS' EQUITY Common stock 29,610 29,045 Retained earnings 64,256 63,480 --------- --------- Total shareholders' equity 93,866 92,525 --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 108,814 $ 108,671