-----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, T8KSuONp92A7OPTTfiQEFrHGOjj9/UeP4vmvidGctZjXj7SD1wSFX43g8jvpa/m6 mttf9EDCWRQHxnPNm1X7LA== 0000730000-98-000001.txt : 19980128 0000730000-98-000001.hdr.sgml : 19980128 ACCESSION NUMBER: 0000730000-98-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980126 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: 98513306 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, 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 January 8, 1998, 12,091,314 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 6. Exhibits, Financial Statement Schedule and Reports on Form 8-K .............................. 9 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, ----------- ----------- 1997 1996 1997 1996 ---- ---- ---- ---- Net sales $ 13,857 $ 10,850 $ 39,782 $ 36,230 -------- -------- -------- -------- Cost and expenses: Cost of sales 7,496 6,197 21,644 19,090 Research and development 1,464 1,326 4,265 3,860 Selling, general and administrative 1,741 1,501 4,978 4,598 -------- -------- -------- -------- Total costs and expenses 10,701 9,024 30,887 27,548 -------- -------- -------- -------- Income from operations 3,156 1,826 8,895 8,682 Interest income 454 348 1,171 1,067 Other income (expense), net (22) 21 5 35 -------- -------- -------- -------- Income before provision for income taxes 3,588 2,195 10,071 9,784 Provision for income taxes 1,220 703 3,424 3,131 -------- -------- -------- -------- Net income $ 2,368 $ 1,492 $ 6,647 $ 6,653 ======== ======== ======== ======== Net income per share Basic $ 0.20 $ 0.12 $ 0.55 $ 0.55 ======== ======== ======== ======== Diluted $ 0.19 $ 0.12 $ 0.54 $ 0.53 ======== ======== ======== ======== Shares used in per share computation Basic: Weighted Average Shares Outstanding 12,089 12,068 12,068 12,010 ======== ======== ======== ======== Diluted: Weighted Average Shares Outstanding 12,089 12,068 12,068 12,010 Common Stock Equivalents 338 530 341 520 -------- -------- -------- -------- Total common stock equivalent shares 12,427 12,598 12,409 12,530 ======== ======== ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
Dec. 31, 1997 Mar. 31, 1997 ------------- ------------- (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 22,135 $ 19,166 Short term investments 7,631 4,497 Trade accounts receivable, net of allowances of $450 and $525 9,611 9,337 Other receivables 230 154 Inventories 9,573 9,249 Deferred income taxes 1,834 1,834 Prepaid expenses 335 418 -------- -------- Total current assets 51,349 44,655 Property and equipment, net 12,607 11,753 -------- -------- TOTAL ASSETS $ 63,956 $ 56,408 ======== ========
LIABILITIES
Current liabilities: Trade accounts payable $ 3,285 $ 3,813 Accrued salaries, wages and employee benefits 2,811 2,499 Income taxes payable 1,106 166 Other accrued liabilities 329 366 Deferred revenue on shipments to distributors 1,377 1,077 -------- -------- Total current liabilities 8,908 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 12,087,814 and 12,047,031 shares 20,635 20,302 Retained earnings 34,413 28,185 -------- -------- Total shareholders' equity 55,048 48,487 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 63,956 $ 56,408 ======== ======== See accompanying Notes to Consolidated Financial Statements.
SUPERTEX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)
Nine Months Ended Dec. 31, 1997 Dec. 31, 1996 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,647 $ 6,653 -------- -------- Non-cash adjustments to net income: Depreciation and amortization 1,804 1,559 Provision for doubtful accounts and sales returns 916 1,370 Provision for excess and obsolete inventories (75) (178) Changes in operating assets and liabilities: Accounts and other receivables (1,266) (1,209) Inventories (249) (1,400) Prepaid expenses 83 (296) Trade accounts payable and accrued expenses (253) 852 Income taxes payable 940 (638) Deferred revenue on shipments to distributors 300 333 -------- -------- Total adjustments 2,200 393 -------- -------- Net cash provided by operating activities 8,847 7,046 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (2,658) (4,052) Purchases of short term investments (21,287) (43,969) Proceeds from maturities of short term investments 18,153 29,232 -------- -------- Net cash used in investing activities (5,792) (18,789) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Stock options exercised 333 739 Repurchase of stock (419) 0 -------- -------- Net cash provided by (used in) financing activities (86) 739 -------- -------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,969 (11,004) CASH AND CASH EQUIVALENTS: Beginning of period 19,166 16,108 -------- -------- End of period $ 22,135 $ 5,104 ======== ======== 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 nine months ended December 31, 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): December 31, 1997 March 31, 1997 ----------------- -------------- (unaudited) Finished goods ............................ $ 2,237 $ 1,656 Work-in-process ........................... 6,318 5,993 Raw materials ............................. 1,018 1,600 ------- ------- $ 9,573 $ 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 third quarter ended December 31, 1997 increased 28% to $13,857,000 from $10,850,000 of the same quarter last year. Nine months net sales of $39,782,000 increased 10% from the same period last year of $36,230,000. Continued strength in our customers' markets contributed to this increase in sales. During the nine months ended December 31, 1997, approximately 53% of Supertex's shipments were to international customers. Gross Margin: Gross margin for the third quarter and nine months ended December 31, 1997 were both 46% compared with 43% for the same quarter and 47% for the nine months period of the prior year. The slight decrease in gross margin for the nine month period is a result of the change in product mix toward less mature products which caused the company to incur higher engineering support costs. Research and Development: As percentage of net sales, third quarter R&D decreased slightly to 11% from 12% of the same quarter last year. For the nine month period, such expenses remained constant at 11% when compared to the same period of last year. However, dollar expenditures increased 10% to $1,464,000 for the three months ($4,265,000 for nine months) ended December 31, 1997 from $1,326,000 for three months ($3,860,000 for nine months) of last year primarily due to increase in payroll despite reduction in outside services. Selling, General and Administrative: Selling, general and administrative expenses for the third quarter and nine months ended December 31, 1997 were both 13% of net sales, compared with 14% for the same quarter and 13% for the nine months period of the prior year. Fixed costs remained fairly constant from year to year in this category, with sales commission increasing in line with increased sales. Interest and Other Income: Interest and other income for the third quarter of the current year was $432,000, a 17% increase from $369,000 for the same period last year. For the nine months ended December 31, 1997, interest and other income increased 7% from the corresponding period of the prior year. The increases in interest income for the quarter and nine month period are associated with the Company's higher cash balances. See Liquidity and Capital Resources below. Provision for Income Taxes: The Company's effective tax rate for the nine months ended December 31, 1997 was 34%, an increase from 32% for the same period of last year. Liquidity and Capital Resources: On December 31, 1997, the Company had $29,766,000 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 and inventories. Net cash used in investing activities as of third quarter of fiscal year 1998 is $5,792,000 which consisted mainly of purchases of short-term investments and capital equipment purchases. Net cash used in the repurchase of common stock was $419,000 which was partially offset by proceeds from stock option exercises amounting to $333,000. 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 was able to reduce the original budget for capacity expansion during fiscal year 1998 by better planning and unexpected availability of good surplus capital equipment at less than the original budgeted amount. 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 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 26, 1998 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, Decenber 31, 1997 1996 1997 1996 ------ ------ ------ ------ BASIC: Weighted Average Shares Outstanding 12,089 12,068 12,068 12,010 ======= ======= ======= ======= Net income $ 2,368 $ 1,492 $ 6,647 $ 6,653 ======= ======= ======= ======= Net income per share $ 0.20 $ 0.12 $ 0.55 $ 0.55 ======= ======= ======= ======= DILUTED: Weighted Average Shares Outstanding 12,089 12,068 12,068 12,010 Common Stock Equivalents 338 530 341 520 ------- ------- ------- ------- Total common and common equivalent shares 12,427 12,598 12,409 12,530 ======= ======= ======= ======= Net income $ 2,368 $ 1,492 $ 6,647 $ 6,653 ======= ======= ======= ======= Net income per share $ 0.19 $ 0.12 $ 0.54 $ 0.53 ======= ======= ======= =======
EX-27 2 ARTICLE 5 FINANCIAL DATA SCHEDULE FOR 3RD QTR. 10-Q
5 1,000 9-MOS MAR-30-1998 DEC-31-1997 22,135 0 10,061 450 9,573 51,349 27,975 15,368 63,956 8,908 0 0 0 20,635 34,413 63,956 39,782 39,782 21,644 30,887 0 198 0 10,071 3,424 6,647 0 0 0 6,647 .55 .54
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