-----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, MqPQV5xxkIqJ0+JyLCxJo9Bd/7iu5GqwOh6iUPWHhGOEQw90w7cTQ+kqkX+qDKci XYE9qBrgT2Q1co2VDo9TCw== 0000730000-97-000007.txt : 19971027 0000730000-97-000007.hdr.sgml : 19971027 ACCESSION NUMBER: 0000730000-97-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971024 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: SEC FILE NUMBER: 000-12718 FILM NUMBER: 97699974 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 September 30, 1997 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 October 15, 1997, 12,086,164 shares of the Registrant's common stock were issued and outstanding. Total number of pages: 11 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 4. Submission of Matters to a Vote of Security Holders .. 9 Item 6. Exhibits, Financial Statement Schedule and Reports on Form 8-K .............................. 10 PART I - FINANCIAL INFORMATION Item 1. Financial Statements SUPERTEX, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (in thousands, except per share amounts)
Three-months Ended, Six-months Ended, ------------------ ---------------- September 30, September 30, ------------ ------------ 1997 1996 1997 1996 ---- ---- ---- ---- Net sales $ 13,613 $ 12,920 $ 25,925 $ 25,381 -------- -------- Cost and expenses: Cost of sales 7,468 6,584 14,147 12,894 Research and development 1,425 1,223 2,801 2,534 Selling, general and administrative 1,603 1,503 3,237 3,097 -------- -------- -------- -------- Total costs and expenses 10,496 9,310 20,185 18,525 -------- -------- -------- -------- Income from operations 3,117 3,610 5,740 6,856 Interest income 373 352 717 719 Other income (expense), net (2) 13 26 13 -------- -------- -------- -------- Income before provision for income taxes 3,488 3,975 6,483 7,588 Provision for income taxes 1,186 1,272 2,204 2,428 -------- -------- -------- -------- Net income $ 2,302 $ 2,703 $ 4,279 $ 5,160 ======== ======== ======== ======== Net income per share $ 0.19 $ 0.22 $ 0.35 $ 0.41 ======== ======== ======== ======== Shares used in per share computation 12,414 12,499 12,400 12,497 ======== ======== ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
Sept. 30, 1997 Mar. 31, 1997 -------------- ------------- (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 16,167 $ 19,166 Short term investments 10,532 4,497 Trade accounts receivable, net of allowances of $595 and $525 10,674 9,337 Other receivables 197 154 Inventories 9,578 9,249 Deferred income taxes 1,834 1,834 Prepaid expenses 370 418 -------- -------- Total current assets 49,352 44,655 Property and equipment, net 12,074 11,753 -------- -------- TOTAL ASSETS $ 61,426 $ 56,408 ======== ========
LIABILITIES
Current liabilities: Trade accounts payable $ 3,330 $ 3,813 Accrued salaries, wages and employee benefits 2,610 2,499 Income taxes payable 884 166 Other accrued liabilities 382 366 Deferred revenue on shipments to distributors 1,458 1,077 -------- -------- Total current liabilities 8,664 7,921 -------- -------- 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 12,086,164 and 12,047,031 shares 20,507 20,302 Retained earnings 32,255 28,185 -------- -------- Total shareholders' equity 52,762 48,487 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 61,426 $ 56,408 ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)
Six Months Ended ---------------- Sept. 30, 1997 Sept. 30, 1996 -------------- -------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 4,279 $ 5,160 -------- -------- Non-cash adjustments to net income: Depreciation and amortization 1,120 941 Provision for doubtful accounts and sales returns 679 823 Provision for excess and obsolete inventories (30) 235 Changes in operating assets and liabilities: Accounts and other receivables (2,059) (2,243) Inventories (298) (552) Prepaid expenses 48 (449) Trade accounts payable and accrued expenses (357) 1,243 Income taxes payable 719 13 Deferred revenue on shipments to distributors 381 270 -------- -------- ------- ------- Total adjustments 203 281 -------- -------- ------- ------- Net cash provided by operating activities 4,482 5,441 -------- -------- ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (1,443) (2,746) Purchases of short term investments (14,188) (28,942) Proceeds from maturities of short term investments 8,153 16,273 -------- -------- ------- ------- Net cash used in investing activities (7,478) (15,415) -------- -------- ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES Stock options exercised 205 290 Repurchase of stock (208) 0 -------- -------- ------- ------- Net cash provided by (used in) financing activities (3) 290 -------- -------- ------- ------- NET DECREASE IN CASH AND CASH EQUIVALENTS (2,999) (9,684) CASH AND CASH EQUIVALENTS: Beginning of period 19,166 16,108 -------- -------- End of period $ 16,167 $ 6,424 ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - ------ In the opinion of management, the unaudited financial statements for the six months ended September 30, 1997, 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, 1997, 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): Sept. 30, 1997 March 31, 1997 -------------- -------------- (unaudited) Finished goods .............................. $ 2,298 $ 1,656 Work-in-process ............................. 6,132 5,993 Raw materials ............................... 1,148 1,600 ------- ------- $ 9,578 $ 9,249 ======= ======= Recent Accounting Pronouncements In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share" (SFAS 128), which specifies the computation, presentation and disclosure requirements for earnings per share. SFAS 128 supersedes Accounting Principles Board Opinion No. 15 and is effective for financial statements issued for periods ending after December 15, 1997. SFAS 128 requires restatement of all prior-period earnings per share data presented after the effective date. SFAS 128 will not have a material impact on the Company's financial position, results of operations or cash flows. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130). SFAS 130 establishes standards for reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined as "the change in equity of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners." SFAS 130 is effective for fiscal years beginning after December 15, 1997, and reclassification of financial statements for earlier periods provided for comparative purposes is required. SFAS 130 is not expected to have a material impact on the Company's financial position, results of operations or cash flows. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information" (SFAS 131). SFAS 131 establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to shareholders. SFAS 131 generally supersedes Statement of Financial Accounting Standards No. 14, "Financial Reporting for Segments of a Business Enterprise." Under SFAS 131, operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally. SFAS 131 is effective for financial statements for periods beginning after December 15, 1997, and restatement of comparative information for earlier years is required. However, SFAS 131 is not required to be applied to interim financial statements in the initial year of application. SFAS 131 will not have a material impact on the Company's financial position, results of operations or cash flows. 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 21 E of the Securities Exchange 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 industry in which the Company competes is characterized by extreme rapid changes in technology and frequent new product introductions. The Company believes that its long-term growth will depend largely on its ability to continue to enhance existing products and to introduce new products and features that meet the continually changing requirements of customers, as well as timely capacity expansions. While the Company has invested heavily in new products, new processes and new capacities, there can be no assurance that it can continue to introduce new products, new processes and new capacities on a timely basis or that certain of its products, processes and capacities will not be rendered noncompetitive or obsolete by its competitors. Results of Operations Net Sales: Net sales for the second quarter ended September 30, 1997 increased 5% to $13,613,000 from $12,920,000 of the same quarter last year. Six months net sales of $25,925,000 increased 2% from the same period last year of $25,381,000. Continued strength in our customers' markets contributed to this increase in sales. During the six months ended September 30, 1997, approximately 52% of Supertex's shipments were to international customers. Gross Margin: Gross margin for the second quarter and six months ended September 30, 1997 were 45% compared with 49% for the same quarter and six months period of the prior year. The decrease in gross margin is a result of the change in product mix toward less mature products which caused the Company to incur higher engineering support costs. In order to meet its product demand, the Company is in the process of completing its wafer fabrication facility upgrades, and additional maintenance and support costs were incurred. Research and Development: As a percentage of net sales, R&D expenses increased to 10.5% and 10.8% of net sales for the quarter and six months ending September 30, 1997, respectively. This compares with R&D expense of 9.5% and 10% of net sales for the quarter and six months period of last year. Dollar expenditures also increased to $1,425,000 for the three months ($2,801,000 for six months) ended September 30, 1997 versus $1,223,000 for three months ($2,534,000 for six months) corresponding periods of last year. The Company expects that research and development expenses will increase during the remainder of this fiscal year. Selling, General and Administrative: Selling, general and administrative expenses for the second quarter and six months ended September 30, 1997 and for the corresponding periods of the prior fiscal period were 12% of net sales. Fixed costs remained fairly constant from year to year in this category, with sales commissions increases in line with increased sales. Interest and Other Income: Interest and other income for the second quarter of the current year was $371,000, a 2% increase from $365,000 for the same period last year. For the six months ended September 30, 1997, interest and other income also increased 2% from the corresponding period of the prior year. Provision for Income Taxes: The Company's effective tax rate for the six months ended September 30, 1997 was 34%, an increase from 32% for the same period of last fiscal year. Liquidity and Capital Resources: On September 30, 1997, the Company had $26,699,000 in cash, cash equivalents and short term investments, compared with $23,633,000 on March 31, 1997. 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. Net cash used in investing activities as of second quarter of fiscal year 1998 is $7,478,000 which consisted mainly of purchases of short-term investments. Net cash used in the repurchase of stocks was $208,000 which was offset by proceeds from stock option exercises of $205,000. The Company anticipates that available funds and cash expected to be generated from operations will be sufficient to meet cash and working capital requirements through the end of fiscal year 1998. The Company expects to spend approximately $6,827,000 for capacity expansion during fiscal year 1998. Recent Accounting Pronouncements: In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share" (SFAS 128), which specifies the computation, presentation and disclosure requirements for earnings per share. SFAS 128 supersedes Accounting Principles Board Opinion No. 15 and is effective for financial statements issued for periods ending after December 15, 1997. SFAS 128 requires restatement of all prior-period earnings per share data presented after the effective date. SFAS 128 will not have a material impact on the Company's financial position, results of operations or cash flows. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130). SFAS 130 establishes standards for reporting and display of comprehensive income and its components in a full set of general-purpose financial statements. Comprehensive income is defined as "the change in equity of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners." SFAS 130 is effective for fiscal years beginning after December 15, 1997, and reclassification of financial statements for earlier periods provided for comparative purposes is required. SFAS 130 is not expected to have a material impact on the Company's financial position, results of operations or cash flows. In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information" (SFAS 131). SFAS 131 establishes standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to shareholders. SFAS 131 generally supersedes Statement of Financial Accounting Standards No. 14, "Financial Reporting for Segments of a Business Enterprise." Under SFAS 131, operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the basis that it is used internally. SFAS 131 is effective for financial statements for periods beginning after December 15, 1997, and restatement of comparative information for earlier years is required. However, SFAS 131 is not required to be applied to interim financial statements in the initial year of application. SFAS 131 will not have a material impact on the Company's financial position, results of operations or cash flows. PART II - OTHER INFORMATION Item 4. - Submission of Matters to a Vote of Security Holders The Company's Annual Shareholders' Meeting was held on August 1, 1997 at 10:00 a.m., at which the following matters were acted upon: Votes Votes Withheld/ Broker ----- --------------- ------ Matter Acted Upon Votes For Against Abstentions Non-Votes ----------------- --------- ------- ----------- --------- 1. Election of Directors Henry C. Pao 11,195,811 0 54,985 0 Yunni Pao 11,195,261 0 55,535 0 Benedict C. K. Choy 11,195,611 0 55,185 0 Frank C. Pao 11,185,411 0 65,385 0 Richard E. Siegel 11,190,311 0 60,485 0 2. Ratification of Coopers and Lybrand LLP as independent accountants for the Company for fiscal year ending March 31,1998 11,239,171 5,900 5,725 0 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: October 23, 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 Six Months Ended September 30, September 30, 1997 1996 1997 1996 ------ ------ ------ ------ PRIMARY: Weighted Average Shares Outstanding 12,057 11,997 12,057 11,981 Common Stock Equivalents 357 502 343 516 ------- ------- ------- ------- Total common and common equivalent shares 12,414 12,499 12,400 12,497 ======= ======= ======= ======= Net income $ 2,302 $ 2,703 $ 4,279 $ 5,160 ======= ======= ======= ======= Net income per share $ 0.19 $ 0.22 $ 0.35 $ 0.41 ======= ======= ======= ======= FULLY DILUTED: Weighted Average Shares Outstanding 12,057 11,997 12,057 11,981 Dilutive employee stock options 424 523 376 526 ------- ------- ------- ------- Total common and common equivalent shares 12,481 12,520 12,433 12,507 ======= ======= ======= ======= Net income $ 2,302 $ 2,703 $ 4,279 $ 5,160 ======= ======= ======= ======= Net income per share $ 0.18 $ 0.22 $ 0.34 $ 0.41 ======= ======= ======= ======= 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 2ND QTR. 10-Q
5 1,000 6-MOS MAR-30-1998 SEP-30-1997 16,167 0 11,269 595 9,578 49,352 26,760 14,686 61,426 8,664 0 0 0 20,507 32,255 61,426 25,925 25,925 14,147 20,185 0 91 0 6,483 2,204 4,279 0 0 0 4,279 .35 .34
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