-----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, ToUNfCghbht5Mf0YAhXxYxu4Wa3lwjo/a17njONAqe47YcrxsdGrfNcl0WJV2Gwe ebkoUvMcWSYtwfcjBz6VGA== 0000730000-97-000001.txt : 19970129 0000730000-97-000001.hdr.sgml : 19970129 ACCESSION NUMBER: 0000730000-97-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970128 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: 97512090 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 December 31, 1996 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 January 22, 1997, 12,087,531 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 .................................. 8 PART I - FINANCIAL INFORMATION Item 1. Financial Statements SUPERTEX, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (in thousands, except per share amounts)
Three-months Ended, Nine-months Ended, ------------------ ----------------- December 31, December 31, ----------- ----------- 1996 1995 1996 1995 ---- ---- ---- ---- Net sales $ 10,850 $ 11,118 $ 36,230 $ 30,634 Cost and expenses: Cost of sales 6,197 5,718 19,090 15,821 Research and development 1,326 1,456 3,860 4,059 Selling, general and administrative 1,501 1,471 4,598 4,165 -------- -------- -------- -------- Total costs and expenses 9,024 8,645 27,548 24,045 -------- -------- -------- -------- Income from operations 1,826 2,473 8,682 6,589 Interest income 348 293 1,067 855 Other income, net 21 25 35 109 -------- -------- -------- -------- Income before provision for income taxes 2,195 2,791 9,784 7,553 Provision for income taxes 703 865 3,131 2,342 -------- -------- -------- -------- Net income $ 1,492 $ 1,926 $ 6,653 $ 5,211 ======== ======== ======== ======== Net income per share $ 0.12 $ 0.16 $ 0.53 $ 0.42 ======== ======== ======== ======== Shares used in per share computation 12,598 12,274 12,530 12,275 ======== ======== ======== ======== See accompanying Notes to Consolidated Financial Statments.
SUPERTEX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
Dec. 31, 1996 Mar. 31, 1996 ------------- ------------- (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 5,104 $ 16,108 Short term investments 21,018 6,281 Trade accounts receivable, net of allowances of $571 and $559 7,512 7,823 Other receivables 231 81 Inventories 8,831 7,254 Deferred income taxes 1,242 1,241 Prepaid expenses 470 174 -------- -------- Total current assets 44,408 38,962 Property and equipment, net 8,959 6,466 -------- -------- TOTAL ASSETS $ 53,367 $ 45,428 ======== ========
LIABILITIES
Current liabilities: Trade accounts payable $ 4,171 $ 3,357 Accrued salaries, wages and employee benefits 1,777 1,723 Income taxes payable 0 638 Other accrued liabilities 298 314 Deferred revenue on shipments to distributors 1,066 733 -------- -------- Total current liabilities 7,312 6,765 -------- -------- 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 12,087,531 and 11,935,671 shares 19,448 18,709 Retained earnings 26,607 19,954 -------- -------- Total shareholders' equity 46,055 38,663 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 53,367 $ 45,428 ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)
Nine Months Ended ----------------- Dec. 31, 1996 Dec. 31, 1995 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,653 $ 5,211 Non-cash adjustments to net income: Depreciation and amortization 1,559 1,090 Provision for doubtful accounts and sales returns 1,370 673 Provision for excess and obsolete inventories (177) 245 Deferred income taxes (1) 0 Loss on disposal of assets 0 8 Changes in operating assets and liabilities: Accounts and other receivables (1,209) (1,426) Inventories (1,400) (720) Prepaid expenses (296) (77) Trade accounts payable and accrued expenses 852 101 Income taxes payable (638) (35) Deferred revenue on shipments to distributors 333 229 ------- ------- Total adjustments 395 88 ------- ------- Net cash provided by operating activities 7,046 5,299 ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (4,052) (3,948) Purchases of short term investments (43,969) (39,343) Proceeds from maturities of short term investments 29,232 36,080 ------- ------- Net cash used in investing activities (18,789) (7,211) ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES Stock options exercised 739 147 Repurchase of stock 0 (501) ------- ------- Net cash provided by (used in) financing activities 739 (354) ------- ------- NET DECREASE IN CASH AND CASH EQUIVALENTS (11,004) (2,266) CASH AND CASH EQUIVALENTS: Beginning of period 16,108 4,437 ------- ------- End of period $ 5,104 $ 2,171 ======= ======= See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - ------ In the opinion of management, the unaudited information for the three months and nine months ended December 31, 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, 1996, 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): December 31, 1996 March 31, 1996 ----------------- -------------- (unaudited) Finished goods ............................ $ 1,527 $ 1,366 Work-in-process ........................... 6,274 4,122 Raw materials ............................. 1,030 1,766 ------- ------- $ 8,831 $ 7,254 ======= ======= During October 1995, the Financial Accounting Standards Board issued Statement No. 123, "Accounting for Stock-Based Compensation" (SFAS 123), which establishes a fair value based method of accounting for stock-based compensation plans. The Company is currently following the requirements of Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees." The Company plans to adopt SFAS 123 during fiscal 1997 utilizing the disclosure alternative. During March 1995, the Financial Accounting Standards Board issued Statement No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of" (SFAS 121), which requires the Company to review for impairment of long-lived assets, certain identifiable intangibles and goodwill related to those assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. SFAS 121 will become effective for the Company's 1997 fiscal year. The Company does not expect SFAS 121 to have a material impact on the Company's financial condition or results of operations. 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 21E of the Securities 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 Company's sales are concentrated in the high voltage semiconductor components industry, which is highly competitive and rapidly changing. Significant technological changes in the industry, changes in production yields and efficiencies, customer requirements, or the emergence of competitor products with new capabilities or technologies, could affect the Company's operating results adversely. The Company currently buys all of its blank silicon wafers, an integral component of its products, from one supplier. Failure by this supplier to satisfy the Company's requirements on a timely basis at competitive prices could cause a delay in manufacturing and a possible loss of revenues, which would affect operating results adversely. Results of Operations Net Sales: Net sales for the third quarter ended December 31, 1996 decreased 2% from $11,118,000 of the same quarter last year to $10,850,000. As the production facilities have been running at the limit of their capacities for over three quarters, equipment and employee fatigue took a toll in production efficiency due to excessive equipment downtime and employee absenteeism. In late November a regular weekend shift was added to relieve employee fatigue, but new employees had to be trained. However, the demand for our newly introduced products required the Company's production organization to go through the learning curve and ramp up much faster than planned. Efforts to expedite production runs were unsuccessful within the quarter and resulted in significant yield losses and lower sales than planned. In the latter part of the quarter, certain potentially large customers requested product specification changes to improve the performance of their end products. Accommodating their needs was costly for the near term as some products had to be scrapped and sales in those products were missed in the quarter. Such cooperation in the past, however, enabled us to cement long term relationships with our customers. The above described problems adversely affected the quarter's sales. Nine months net sales of $36,230,000 increased 18% from the same period last year of $30,634,000. During the nine months ended December 31, 1996, approximately 50% of Supertex's shipments were to international customers. Gross Margin: Gross margin for the third quarter of fiscal 1997 was 43% of net sales compared with 49% for the same quarter of the prior year. Yield losses and production inefficiencies during the quarter resulted in higher cost of goods manufactured, reducing this quarter's gross margin. Research and Development(R&D) resources had to be brought in to fix the problems, further aggravating the margin and temporarily diverting the R&D efforts. Gross margin for the nine months ended December 31, 1996, was 47%, a slight decrease from 48% for the same period of last fiscal year. Research and Development: As a percentage of net sales, R&D expenses were 12% of net sales for the quarter, and 11% of net sales for the nine months ending December 31, 1996. This compares with 13% of net sales for the three and nine month periods of last year. Dollar expenditures in this category were lower at $1,326,000 for the three months ($3,860,000 for the nine months) ended December 31, 1996 versus $1,456,000 for comparable three months ($4,059,000 for nine months) last year. Some of the R&D resources were diverted to support new product ramp and solve the yield problems in manufacturing during the quarter. The Company intends to invest heavily at least at the same dollar rate in its new product and process development efforts. Selling, General and Administrative: Selling, general and administrative expenses for the third quarter ended December 31, 1996 were 14% of net sales, a slight increase from 13% for the same quarter of last fiscal year. Selling, general and administrative expenses for the nine months ended December 31, 1996 were 13%, compared with 14% for the same period of last fiscal year. Interest and Other Income: Interest and other income for the third quarter of the current year was $369,000, a 16% increase from $318,000 for the same period last year. For the nine months ended December 31, 1996, interest and other income also increased 14% from the corresponding period of the prior year. Increased cash available for short-term investments accounted for this growth. Provision for Income Taxes: The Company's effective tax rate for the nine months ended December 31, 1996 was 32%, an increase from 31% for the same period of last fiscal year. Liquidity and Capital Resources: On December 31, 1996, the Company had $26,122,000 in cash, cash equivalents and short term investments, compared with $22,389,000 on March 31, 1996. This increase is mostly due to positive cash flow from operating activities consisting principally of net income and an increase in liability accounts, and partially offset by an increase in receivables and inventories. Net cash used in investing activities as of third quarter of fiscal year 1997 is $18,789,000, which consisted mainly of purchases of short-term investments and acquisition of fixed assets. Net cash provided by financing activities is $739,000 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 for the remainder of the fiscal year. The Company believes that success in the semiconductor business requires substantial capital in order to maintain the flexibility and take advantage of opportunities as they may arise. As the market and business conditions warrant, the Company may invest in or acquire complementary businesses, products, technologies and/or production facilities. Recent Accounting Pronouncements: During October 1995, the Financial Accounting Standards Board issued Statement No. 123, "Accounting for Stock-Based Compensation" (SFAS 123), which establishes a fair value based method of accounting for stock-based compensation plans. The Company is currently following the requirements of Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees". The Company plans to adopt SFAS 123 during fiscal 1997 utilizing the disclosure alternative. During March 1995, the Financial Accounting Standards Board issued Statement No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of" (SFAS 121), which requires the Company to review for impairment of long-lived assets, certain identifiable intangibles and goodwill related to those assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. SFAS 121 will become effective for the Company's 1997 fiscal year. The Company does not expect SFAS 121 to have a material impact on the Company's financial condition or results of operations. 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: January 27, 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 Nine Months Ended December 31, December 31, 1996 1995 1996 1995 ------ ------ ------ ------ PRIMARY: Weighted Average Shares Outstanding 12,068 11,891 12,010 11,897 Common Stock Equivalents 530 383 520 378 ------- ------- ------- ------- Total common and common equivalent shares 12,598 12,274 12,530 12,275 ======= ======= ======= ======= Net income $ 1,492 $ 1,926 $ 6,653 $ 5,211 ======= ======= ======= ======= Net income per share $ 0.12 $ 0.16 $ 0.53 $ 0.42 ======= ======= ======= ======= FULLY DILUTED: Weighted Average Shares Outstanding 12,068 11,891 12,010 11,897 Dilutive employee stock options 530 399 527 397 ------- ------- ------- ------- Total common and common equivalent shares 12,598 12,290 12,537 12,294 ======= ======= ======= ======= Net income $ 1,492 $ 1,926 $ 6,653 $ 5,211 ======= ======= ======= ======= Net income per share $ 0.12 $ 0.16 $ 0.53 $ 0.42 ======= ======= ======= ======= 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 3RD QTR. 10-Q
5 1,000 9-MOS MAR-30-1997 DEC-31-1996 5,104 0 7,997 486 8,831 44,407 22,209 13,249 53,367 7,313 0 0 0 19,448 26,406 53,367 36,230 36,230 19,090 27,548 0 (6) 0 9,784 3,131 6,653 0 0 0 6,653 .53 .53
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