8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):October 24, 2006

SUPERTEX, INC.

(Exact name of registrant as specified in its charter)

California	0-12718	94-2328535
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1235 Bordeaux Drive, Sunnyvale, California	94089
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 408-222-8888

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On October 24, 2006, Supertex, Inc. (the “Company”) announced via press release the Company’s results for its second quarter of fiscal year 2007. A copy of the Company’s press release is attached hereto as Exhibit 99.1

The information in this Current Report and attached Exhibit 99.1 is furnished to, but not filed with, the Securities and Exchange Commission. It shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, and such information shall not be deemed to be incorporated by reference into any of the Company’s filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The exhibit listed below is being furnished with this Form 8-K.

Exhibit No.Description

Exhibit 99.1Registrant's Press Release dated October 24, 2006 announcing the Company’s financial results for the second quarter of its fiscal year 2007.

SIGNATURES

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 hereunto duly authorized.

		Supertex., Inc
		(Registrant)
Date: October 24, 2006	By	/s/ Henry C. Pao
	Name	Henry C. Pao
	Title	President and Chief Executive Officer

Exhibit Index

ExhibitDescription

99.1                             Registrant's press release dated October 24, 2006, is furnished pursuant to Item 2.02 of Form 8-K.

EX-99.1 CHARTER

SUPERTEX, INC.                                                                            NEWS RELEASE 

FOR IMMEDIATE RELEASECorporate Headquarters:

     Dr. Henry Pao

     President & CEO

     408/222-8888

Supertex Reports Second Fiscal Quarter Results

Sunnyvale, CA (October 24, 2006) - Supertex, Inc. (NASDAQ GS: SUPX) today reported financial results for the second fiscal quarter ended September 30, 2006. Net sales were $26,521,000, a 31% increase over the $20,226,000 the same quarter last year and an 8% increase from the prior quarter of $24,565,000. On a GAAP basis, net income in the second fiscal quarter, including employee stock-based compensation of $651,000, was $5,996,000 or $0.43 per diluted share, as compared with $4,247,000 or $0.31 per diluted share without employee compensation for the same quarter of last fiscal year.

For the first six months of fiscal 2007, net sales were $51,086,000 compared to $36,219,000 in the same period of the prior fiscal year, an increase of 41%. On a GAAP basis, net income in the first six months of fiscal 2007, including employee stock-based compensation of $1,299,000 was $10,912,000 or 54% higher than the net income without employee stock-based compensation of $7,066,000 in the same period of last fiscal year.

Non-GAAP net income in the second fiscal quarter, excluding employee stock-based compensation of $651,000, resulting from the application of Financial Accounting Standard 123R (FAS 123R), was $6,678,000 or $0.48 per diluted share, compared with the non-GAAP net income of $5,516,000, or $0.39 per diluted share in the prior quarter, and $4,247,000, or $0.31 per diluted share for the same quarter of the last fiscal year. For the first fiscal half, non-GAAP net income, excluding employee stock-based compensation of $1,299,000, was $12,194,000 or $0.87 per diluted share compared to $7,066,000 or $0.53 per diluted share in the first half of the last fiscal year.

During the first quarter of fiscal 2007, the Company implemented FAS 123R, “Share-Based Payment”, which requires companies to record estimated costs of all forms of employee stock-based compensation, including stock options and employee stock purchase plans, in their income statements. For Supertex, the total amount of employee stock-based compensation for the first and second quarters of fiscal 2007 included on a GAAP basis under FAS 123R was $648,000 and $651,000, respectively. Under FAS 123R calculations, the number of diluted shares decreased by 44,000 in the second fiscal quarter.

Dr. Henry C. Pao, President & CEO commented, “We had another excellent quarter, the third consecutive record sales quarter, growing the top line by 8% sequentially to $26.5 million and improving gross margin by 1% to 61% and operating margin by 4.5% to 32.9%. Our medical ultrasound and imaging market segments grew sequentially 17% and 12%, respectively. Through our increased sales and highly leveraged operating model, our diluted earnings per share increased $0.08 to $0.43 per share sequentially. Research and development spending was $3.7 million, approximately $0.3 million less than the first fiscal quarter, because it was partially offset by customer-funded projects during the quarter. Cash and short-term investment balances grew $1.4 million to $123 million compared to the first fiscal quarter despite a tax payment of $5.4 million and repurchase of over $1.1 million worth of stock on the open market during the quarter.”

Dr. Pao added, “We are encouraged by the improvements in our core market segments. In the imaging space, our baseline business for cell phone EL keypad backlighting chips continues to be strong. We are penetrating new customers and are actively designing new products in response to our key customers’ future requirements. The medical ultrasound market remains strong as our customers are trying to fulfill their customers’ orders by year-end. Several of our new products have gone into volume production and are currently ramping up, which may mitigate the usual seasonal slowdown in the quarter. We have made good progress in the LED backlighting LCD-TV market with customer design-wins that we expect to have a meaningful impact to our sales beginning in our next fiscal year, or possibly sooner - depending on how quickly our customers can ramp up to volume production. The LED drivers for automotive applications could see production volume next fiscal year as we received a conditional certification of TS16949 last month and expect full certification by year-end. At this point, we expect our third fiscal quarter to see flat to modest sequential sales growth and for the whole fiscal year, above 30% in sales growth. We expect to exceed the targets of our business plan model for this fiscal year.”

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 are not guarantees of future performance or events. They are based upon current expectations, estimates, beliefs, and assumptions about the future, which may prove incorrect, and upon our goals and objectives, which may change. Often such statements can be identified by the use of the words such as "will," "intends," "expects," "plans," "believes," "anticipates" and "estimates". Examples of forward-looking statements include statements concerning our expected sales during the third quarter and fiscal year, and in particular markets such as the medical ultrasound market, the LED backlighting LCD-TV market, and LED drivers for automotive applications; our expectation that our LED drivers for our automotive application will certify by year end; our expectation that we expect our third fiscal quarter to see flat to modest sequential sales growth and for the whole fiscal year, above 30% in sales growth; and our expectation that we will exceed the targets of our business plan model for this fiscal year. 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 our customers experience the demand we anticipate for their products based in part upon their input and our order backlog, whether the designed performance of our devices satisfies our customers' requirements so that they continue to design our devices into their products, whether our devices perform to their design specification, whether competitors introduce devices at lower prices than our devices causing price erosion, whether we are successful in our R&D efforts, and whether we encounter production issues in device manufacturing or moving new products from engineering into production or we incur unexpected operating expenses; and whether there are any unanticipated glitches in the certification process of our LED drivers for automotive applications 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. We undertake no obligation to publicly release updates or revisions to these statements that speak only as of this date.

Conference Call Details

The Company will host a conference call at 2:30 p.m. PDT (5:30 p.m. EDT) on October 24, 2006, following the earnings release. President and CEO, Dr. Henry C. Pao, VP of Marketing, Ahmed Masood, VP, Finance & CFO, Phil Kagel, will present an overview of the second fiscal quarter financial results, discuss current business conditions, and then respond to questions.

The call is available live to any interested party by dialing 866-200-5830 (domestic) or 646-216-7221 (toll, international) before the scheduled start time, and enter PIN number 780264#. A recorded replay will be available immediately following the call until 11:59 P.M. EDT, November 21, 2006 at 866-206-0173 (domestic) or 732-694-1571 (toll, international). The PIN number for the replay is 189253#.

About Supertex

Supertex, Inc. is a publicly held mixed signal semiconductor manufacturer, focused in high voltage products for use in the telecommunication, networking systems, flat panel display, medical and industrial electronics industries. Supertex product, corporate and financial information is readily available at our website: http://www.supertex.com.

For further information, contact Investor Relations at Supertex, Inc., 1235 Bordeaux Drive, Sunnyvale, California 94089, 408-222-8888 or visit our website at http://www.supertex.com.

Use of Non-GAAP Financial Information

To supplement our financial results presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP net income and diluted non-GAAP net income per share.  We present such non-GAAP financial measures in reporting our financial results to provide investors with an additional tool to evaluate our operating results.  Because these non-GAAP measures are not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies.  These non-GAAP financial measures should not be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management uses each of the above non-GAAP financial measures internally to understand, manage and evaluate our business.  Our management believes it is useful for itself and investors to review, as applicable, both GAAP information, which includes employee stock-based compensation expense, and the non-GAAP measures, which exclude this information, in order to assess the performance of our core continuing businesses and for planning and forecasting in future periods.  Each of these non-GAAP measures are intended to provide investors with an understanding of our operational results and trends that more readily enables them to analyze our base financial and operating performance and facilitate period-to-period comparisons and analysis of operation trends.  Our management believes each of these non-GAAP financial measures is useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making.

Our non-GAAP financial measures reflect adjustments based on employee stock-based compensation.  Our cost of sales and operating expenses include employee stock-based compensation related to adoption of FAS 123R - Accounting for Stock Based Compensation.  We believe it is useful to highlight the effect of this employee stock-based compensation expense because, in compliance with our historical practices under previously applicable accounting principles, we have not historically expensed our employee stock-based compensation.  However, employee stock-based compensation is a key incentive offered to our employees, and we believe it contributed to the sales earned during the period and will contribute to our future sales generation. Employee stock-based compensation expenses will recur in future periods.  

SUPERTEX, INC.

CONSOLIDATED BALANCE SHEET INFORMATION

(unaudited)

      September 30, 2006         April 1, 2006

                                                                                                                                                                        & #160;          (in thousands)

ASSETS
Cash and cash equivalents	$	20,859	$	27,654
Short term investments		102,446		82,992
Accounts receivable, net		16,133		14,824
Inventories		12,813		12,543
Deferred income taxes		7,781		7,781
Other current assets		1,811		1,358
Total current assets		161,843		147,152
Property, plant and equipment		8,670		8,048
Other assets		144		141
Deferred income taxes		792		792
TOTAL ASSETS	$	171,449	$	156,133
LIABILITIES
Trade accounts payable	$	4,460	$	3,725
Accrued salaries, wages and employee benefits		10,614		11,227
Other accrued liabilities		1,404		1,498
Deferred revenue		4,630		3,566
Income taxes payable		3,090		2,693
Total current liabilities		24,198		22,709
SHAREHOLDERS' EQUITY
Common stock		50,594		46,692
Retained earnings		96,657		86,732
Total shareholders' equity		147,251		133,424
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	171,449	$	156,133

SUPERTEX, INC.

CONSOLIDATED INCOME STATEMENT INFORMATION

(unaudited)

               Three Months Ended       Six Months Ended

               (in thousands, except per share amounts)

		September 30, 2006		October 1, 2005		September 30, 2006		October 1, 2005
Net sales	$	26,521	$	20,226	$	51,086	$	36,219
Cost of sales(1)		10,305		8,844		20,142		15,650
Gross profit		16,216		11,382		30,944		20,569
Research and development(1)		3,658		2,598		7,607		5,357
Selling, general and administrative(1)		3,826		3,248		7,629		6,436
Income from operations		8,732		5,536		15,708		8,776
Interest and other income, net		968		702		2,256		1,608
Income before income taxes		9,700		6,238		17,964		10,384
Provision for income taxes		3,704		1,991		7,052		3,318
Net income	$	5,996	$	4,247	$	10,912	$	7,066
Net income per share
Basic	$	0.44	$	0.32	$	0.80	$	0.54
Diluted	$	0.43	$	0.31	$	0.78	$	0.53
Shares used in per share computation
Basic		13,671		13,180		13,658		13,129
Diluted		13,989		13,628		14,000		13,422

⁽¹⁾ Includes amortization of employee stock-based

     compensation as follows:

Cost of sales	$	92	$	-	$	157	$	-
Research and development	$	396	$	-	$	783	$	-
Selling, general and administrative	$	163	$	-	$	359	$	-

SUPERTEX, INC.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS

(unaudited)

              Three Months Ended     Six Months Ended

          &# 160;    (in thousands, except per share amounts)

		September 30, 2006		October 1, 2005		September 30, 2006			October 1, 2005
GAAP net income	$	5,996	$	4,247	$	10,912		$	7,066
Adjustment for stock-based compensation included in:
Cost of sales		92				157
Research and development		396				783
Selling, general and administrative		163				359
Subtotal		651		-		1,299			-
Tax effect of stock-based compensation		31		-		(17	)		-
Non-GAAP net income excluding     employee stock-based compensation	$	6,678	$	4,247	$	12,194		$	7,066
Non-GAAP net income per share:
Basic		0.49		0.32		0.89			0.54
Diluted		0.48		0.31		0.87			0.53
Non-GAAP shares used in computing non-GAAP net income per share:
Basic		13,671		13,180		13,658			13,129
Diluted(1)		14,033		13,628		14,056			13,422

(1) Including 43,761 shares and 56,055 shares for the three and six months period ended September, 2006, respectively. To conform diluted outstanding shares calculated under FAS123R to diluted shares calculated under prior accounting standards.

SUPERTEX, INC.

SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP

INCOME PER SHARE

(unaudited)

             Three Months Ended     Six Months Ended

          &# 160;    (in thousands, except per share amounts)

		September 30, 2006		October 1, 2005		September 30, 2006			October 1, 2005
Non-GAAP shares used in computing   non-GAAP net income per diluted share:		14,033		13,628		14,056			13,422
DILUTED:
GAAP net income per share	$	0.43	$	0.31	$	0.78		$	0.53
Adjustments to reconcile net income to    non-GAAP net income per share:
Employee stock based compensation effects included in:
Cost of sales		0.01		-		0.01			-
Research and development		0.03		-		0.06			-
Selling, general and administrative		0.01		-		0.03			-
Provision for income taxes		0.00		-		(0.01	)		-
Non-GAAP net income per share     excluding employee stock-based compensation	$	0.48	$	0.31	$	0.87		$	0.53

(1) Including 43,761 shares and 56,055 shares for the three and six months period ended September, 2006, respectively. To conform diluted outstanding shares calculated under FAS123R to diluted shares calculated under prior accounting standards.