supxearningsreleaseq4fy11.htm
Supertex, Inc. |
News Release |
FOR IMMEDIATE RELEASE
|
Corporate Headquarters:
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|
Dr. Henry C. Pao
|
|
President & CEO
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408/222-8888
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Supertex Reports Fourth Fiscal Quarter and Fiscal Year-end Results
Sunnyvale, CA (May 11, 2011) - Supertex, Inc. (NASDAQ GS: SUPX) today reported financial results for the fourth fiscal quarter and fiscal year ended April 2, 2011. Net sales for the fourth fiscal quarter were $17,983,000, a 9% decrease compared to the prior quarter of $19,675,000 and a 13% decrease compared to $20,559,000 in the same quarter last year. On a GAAP basis, net income in the fourth fiscal quarter was $1,493,000, or $0.12 per diluted share, as compared with $2,860,000 or $0.22 per diluted share in the prior fiscal quarter, and $1,163,000 or $0.09 per diluted share in the same quarter of the prior fiscal year
For the fiscal year ended April 2, 2011, net sales grew 25% to $83,172,000 versus $66,724,000 for the prior fiscal year. On a GAAP basis, net income grew 140% to $12,283,000, or $0.94 per diluted share, as compared with $5,125,000, or $0.39 per diluted share.
Non-GAAP earnings per diluted share for the fourth quarter of fiscal 2011 were $0.16, excluding pre-tax employee stock-based compensation of $727,000, compared with $0.28 in the prior quarter, excluding pre-tax employee stock-based compensation of $795,000, and $0.15 in the same quarter of the prior fiscal year, excluding pretax employee stock-based compensation of $941,000. For the fiscal year ended April 2, 2011, non-GAAP net income per diluted share was $1.17, excluding pre-tax employee stock-based compensation of $3,099,000, as compared to $0.65 for the prior fiscal year, excluding pre-tax employee stock-based compensation of $3,470,000.
“Our fiscal fourth quarter sales were sequentially lower due to reductions in shipments of LED driver products, telecom optical MEMS drivers, and medical ultrasound products,” stated Dr. Henry C. Pao, President and CEO. “We had expected to materially increase our shipments of LED drivers for backlighting monitors in the quarter; however our shipments were actually reduced because our customer’s production of its new monitor product was delayed several months. Shipments of optical MEMS drivers were sequentially lower due to an inventory adjustment at our customer resulting from lower than anticipated demand for our customers’ product which may have been caused by the recent disaster in Japan. In medical ultrasound products we are seeing some price erosion due to competition in analog switches. On the positive side, we are pleased with the pickup in demand for our printer head driver products and our industrial products, and sales began to ramp for ten of our twenty new products introduced during the last fiscal year in the LED lighting and medical ultrasound markets. Fiscal 2011 overall net sales grew 25% on a year-over-year basis. Sales increases were generated in all of our target markets, except LED backlighting products, however LED general lighting product sales continued to grow.”
Dr. Pao commented further, “During our fourth fiscal quarter we launched ten new products, primarily for the medical ultrasound and LED lighting markets, and in the first quarter of fiscal 2012 we plan to launch another ten new products. We project our sales in the first quarter of fiscal 2012 to be flat to 5% lower sequentially as increases in sales of medical ultrasound and telecom products may be offset by declines in industrial and EL products. We nonetheless expect overall sales to increase in fiscal 2012 versus fiscal 2011, primarily due to design wins going into production beginning in our second fiscal quarter.
“Gross margin for the fourth quarter of fiscal 2011 was 51%,” continued Dr. Pao. “Operating expenses were slightly higher sequentially due to increased product development costs in support of our large number of new product development projects. Our tax rate was 30% for the quarter, and 31% for the whole fiscal year. Despite reducing our wafer fab utilization as planned in order to reduce inventory, our inventory grew by $536,000, primarily due to unexpected decreased shipments of our LED backlighting drivers as previously described. Notwithstanding, we continued to generate positive cash flow. During the quarter, cash generated from operating activities was $1.9 million. As announced last quarter, we have begun a new stock repurchase program of 2,500,000 shares and to date we have bought 272,897 shares of Supertex stock for a total of $6,267,000.”
Commenting on total fiscal year 2011, Dr. Pao stated, “This was a recovery year for us. We posted our second highest sales ever of $83.2 million, increased EPS to $0.94 from $0.39 last year, generated $14.5 million of positive cash from operating activities, and positioned our product portfolio for future growth in the LED general lighting, medical ultrasound, printer, and telecom markets.”
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 our anticipation that in the first fiscal quarter sales will be sequentially flat to down five percent as anticipated increases in medical ultrasound and telecom product sales may not offset anticipated declines in industrial and imaging product sales; our plan to introduce an additional eight new products in our first fiscal quarter; our expectation that sales for fiscal 2012 will be greater than for fiscal 2011 primarily due to design wins going into production beginning in our second fiscal quarter; and our belief that we have positioned our product portfolio for future growth in the LED general lighting, medical ultrasound, printer, and telecom markets.
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 the engineering of new products, whether we encounter production issues in device manufacturing or moving new products from engineering into production, and whether our fab equipment continues to operate at expected capacities without need of replacement, 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 May 11, 2011, following the earnings release. President and CEO, Dr. Henry C. Pao, and CFO, Phil Kagel, will present an overview of the fourth fiscal quarter and fiscal year-end financial results, discuss current business conditions, and then respond to questions.
The call is available live for any interested party by dialing 800-862-9098 (domestic) or 785-424-1051 (toll, international) before the scheduled start time and using “Supertex” as conference ID. A recorded replay will be available for 30 days immediately following the conference call until 11:59 p.m. EDT, June 11, 2011 at 800-388-6197 (domestic) and 402-220-1115 (toll, international).
About Supertex
Supertex, Inc. is a publicly held mixed signal semiconductor manufacturer, focused in high voltage products for use in the medical ultrasound imaging, LCD TV backlighting, LED general lighting, telecommunications, printer, flat panel display, industrial and consumer product 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, they 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 us and for 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 is 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 GAAP cost of sales and operating expenses include employee stock-based compensation. Our non-GAAP financial measures reflect adjustments to exclude this employee stock-based compensation. We believe cost of sales excluding share-based compensation, R&D expense excluding share-based compensation, and SG&A expense excluding share-based compensation are useful information for investors because comparative differences in the corresponding GAAP measures for different periods may reflect factors such as a different stock price when equity awards were made and different equity award practices rather than changes in the operation of the business. Stock options are the form of equity compensation we presently utilize and they are a key incentive we offer our employees. We believe they have 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.
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CONSOLIDATED BALANCE SHEET INFORMATION
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(unaudited)
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April 2, 2011
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April 3, 2010
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(in thousands)
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ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
23,962 |
|
|
$ |
10,153 |
|
Short term investments
|
|
|
109,760 |
|
|
|
76,860 |
|
Trade accounts receivable, net
|
|
|
8,100 |
|
|
|
10,786 |
|
Inventories
|
|
|
20,600 |
|
|
|
15,450 |
|
Deferred income taxes
|
|
|
7,228 |
|
|
|
8,162 |
|
Prepaid income taxes
|
|
|
6,461 |
|
|
|
2,456 |
|
Prepaid expenses and other current assets
|
|
|
2,975 |
|
|
|
3,726 |
|
Total current assets
|
|
|
179,086 |
|
|
|
127,593 |
|
Long term investments
|
|
|
30,200 |
|
|
|
65,000 |
|
Property, plant and equipment, net
|
|
|
5,708 |
|
|
|
6,791 |
|
Other assets
|
|
|
622 |
|
|
|
580 |
|
Deferred income taxes
|
|
|
4,980 |
|
|
|
5,254 |
|
TOTAL ASSETS
|
|
$ |
220,596 |
|
|
$ |
205,218 |
|
|
|
|
|
|
|
|
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LIABILITIES
|
|
|
|
|
|
|
|
|
Trade accounts payable
|
|
$ |
3,283 |
|
|
$ |
3,748 |
|
Accrued salaries and employee benefits
|
|
|
12,430 |
|
|
|
11,430 |
|
Other accrued liabilities
|
|
|
772 |
|
|
|
1,167 |
|
Deferred revenue
|
|
|
3,664 |
|
|
|
3,962 |
|
Income taxes payable
|
|
|
2,264 |
|
|
|
15 |
|
Total current liabilities
|
|
|
22,413 |
|
|
|
20,322 |
|
Income taxes payable, noncurrent
|
|
|
4,974 |
|
|
|
4,520 |
|
Other accrued liabilities, noncurrent
|
|
|
290 |
|
|
|
- |
|
Total liabilities
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|
27,677 |
|
|
|
24,842 |
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|
|
|
|
|
|
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SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
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Common stock
|
|
|
68,499 |
|
|
|
64,296 |
|
Accumulated other comprehensive loss
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|
|
(1,683 |
) |
|
|
(2,566 |
) |
Retained earnings
|
|
|
126,103 |
|
|
|
118,646 |
|
Total shareholders' equity
|
|
|
192,919 |
|
|
|
180,376 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$ |
220,596 |
|
|
$ |
205,218 |
|
SUPERTEX, INC.
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CONSOLIDATED INCOME STATEMENT INFORMATION
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(unaudited)
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|
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Three Months Ended
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|
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Twelve Months Ended
|
|
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|
(in thousands, except per share amounts)
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|
|
|
April 2, 2011
|
|
April 3, 2010 |
|
|
April 2, 2011
|
|
|
April 3, 2010
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Net sales
|
|
$ |
17,983 |
|
|
$ |
20,559 |
|
|
$ |
83,172 |
|
|
$ |
66,724 |
|
Cost of sales(1)
|
|
|
8,863 |
|
|
|
11,106 |
|
|
|
37,984 |
|
|
|
34,722 |
|
Gross profit
|
|
|
9,120 |
|
|
|
9,453 |
|
|
|
45,188 |
|
|
|
32,002 |
|
Research and development(1)
|
|
|
4,028 |
|
|
|
4,038 |
|
|
|
14,851 |
|
|
|
15,404 |
|
Selling, general and administrative(1)
|
|
|
3,521 |
|
|
|
3,709 |
|
|
|
14,194 |
|
|
|
12,840 |
|
Income from operations
|
|
|
1,571 |
|
|
|
1,706 |
|
|
|
16,143 |
|
|
|
3,758 |
|
Interest and other income, net
|
|
|
558 |
|
|
|
474 |
|
|
|
1,637 |
|
|
|
2,618 |
|
Income before income taxes
|
|
|
2,129 |
|
|
|
2,180 |
|
|
|
17,780 |
|
|
|
6,376 |
|
Provision for (benefit from) income taxes
|
|
|
637 |
|
|
|
1,017 |
|
|
|
5,498 |
|
|
|
1,251 |
|
Net income
|
|
$ |
1,492 |
|
|
$ |
1,163 |
|
|
$ |
12,282 |
|
|
$ |
5,125 |
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ |
0.12 |
|
|
$ |
0.09 |
|
|
$ |
0.95 |
|
|
$ |
0.40 |
|
Diluted
|
|
$ |
0.12 |
|
|
$ |
0.09 |
|
|
$ |
0.94 |
|
|
$ |
0.39 |
|
Shares used in per share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
12,921 |
|
|
|
12,938 |
|
|
|
12,976 |
|
|
|
12,912 |
|
Diluted
|
|
|
12,952 |
|
|
|
13,016 |
|
|
|
13,030 |
|
|
|
12,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of employee stock-based compensation as follows:
|
|
|
|
|
|
Cost of sales
|
|
$ |
175 |
|
|
$ |
191 |
|
|
$ |
676 |
|
|
$ |
697 |
|
Research and development
|
|
$ |
404 |
|
|
$ |
473 |
|
|
$ |
1,394 |
|
|
$ |
1,640 |
|
Selling, general and administrative
|
|
$ |
148 |
|
|
$ |
277 |
|
|
$ |
1,029 |
|
|
$ |
1,133 |
|
SUPERTEX, INC.
|
|
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
(in thousands, except per share amounts)
|
|
|
|
April 2, 2011
|
|
|
April 3, 2010
|
|
|
April 2, 2011
|
|
|
April 3, 2010
|
|
GAAP net income
|
|
$ |
1,492 |
|
|
$ |
1,163 |
|
|
$ |
12,282 |
|
|
$ |
5,125 |
|
Adjustment for stock-based compensation included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
175 |
|
|
|
191 |
|
|
|
676 |
|
|
|
697 |
|
Research and development
|
|
|
404 |
|
|
|
473 |
|
|
|
1,394 |
|
|
|
1,640 |
|
Selling, general and administrative
|
|
|
148 |
|
|
|
277 |
|
|
|
1,029 |
|
|
|
1,133 |
|
Subtotal
|
|
|
727 |
|
|
|
941 |
|
|
|
3,099 |
|
|
|
3,470 |
|
Tax effect of stock-based compensation
|
|
|
(110 |
) |
|
|
(116 |
) |
|
|
(179 |
) |
|
|
(195 |
) |
Non-GAAP net income excluding
employee stock-based compensation
|
|
$ |
2,109 |
|
|
$ |
1,988 |
|
|
$ |
15,202 |
|
|
$ |
8,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
1.17 |
|
|
$ |
0.65 |
|
Diluted
|
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
1.17 |
|
|
$ |
0.65 |
|
Shares used in per share computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
12,921 |
|
|
|
12,938 |
|
|
|
12,976 |
|
|
|
12,912 |
|
Diluted
|
|
|
12,952 |
|
|
|
13,016 |
|
|
|
13,030 |
|
|
|
12,995 |
|
SUPERTEX, INC.
|
|
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
(in thousands, except per share amounts)
|
|
|
|
April 2, 2011 |
|
|
April 3, 2011 |
|
|
April 2, 2011 |
|
|
April 3, 2010 |
|
Shares used in per share computation:
Diluted
|
|
|
12,952 |
|
|
|
13,016 |
|
|
|
13,030 |
|
|
|
12,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per share
|
|
$ |
0.12 |
|
|
$ |
0.09 |
|
|
$ |
0.94 |
|
|
$ |
0.39 |
|
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 |
|
|
|
0.05 |
|
|
|
0.05 |
|
Research and development
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.11 |
|
|
|
0.13 |
|
Selling, general and administrative
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Provision for income taxes
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Non-GAAP net income per share
excluding employee stock-based compensation
|
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
1.17 |
|
|
$ |
0.65 |
|