EX-99.1 3 f90584exv99w1.txt EXHIBIT 99.1 Exhibit 99.1 Contact: Arnold Agbayani Sr. Vice President, Finance & CFO IXYS Corporation 3540 Bassett Street Santa Clara, California 95054 (408) 982-0700 IXYS CORPORATION ANNOUNCES RESULTS FOR FISCAL 2003, INCLUDING RECORD REVENUES SANTA CLARA, CALIF. May 29, 2003 -- IXYS Corporation (NASDAQ:SYXI) today released its financial results for its fourth fiscal quarter and its fiscal year ended March 31, 2003. For the fourth fiscal quarter ending March 31, 2003, IXYS reported record net revenues of $37.8 million, compared with net revenues of $20.4 million reported for the same period in fiscal year 2002, which represented 85.4% period-to-period revenue growth. Net loss for the fiscal quarter ending March 31, 2003 was $5.6 million, or $0.18 per diluted share, as compared to a net loss of $582,000, or $0.02 per diluted share in the same period for the prior fiscal year. Fourth quarter results include a charge for excess and obsolete inventory of $7.0 million and litigation expenses of $2.4 million. For the fiscal year ended March 31, 2003, IXYS Corporation reported net revenues of $136.1 million, compared to net revenues of $82.8 million for the prior fiscal year, which represented 64.3% year-to-year revenue growth. Net loss for the fiscal year ended March 31, 2003 was $13.2 million, or $0.43 per diluted share, as compared to net income of $1.9 million, or $0.07 per diluted share, reported for the prior fiscal year. "IXYS has demonstrated five consecutive quarters of revenue growth, with three consecutive quarters of record revenues. In the most recent quarter, we had record orders for products, resulting in a book-to-bill ratio above one. We also saw increased revenues from our traditional IXYS products in the power field. We are pleased with our penetration into the high end consumer market, the industrial processing market and the medical equipment market," commented Dr. Nathan Zommer, Chief Executive Officer. "We continued R & D investments in our proprietary IC programs, especially in our Clare division, and we expect results to be evident in the coming quarters. We are pleased with the progress of Clare and its integration into the IXYS culture." 1 IXYS also released restated inventories, cost of goods sold, net loss and net loss per share for the nine months ended December 31, 2002, along with a corrected gross margin percentage. The restatement was necessary due to bookkeeping errors that resulted in an overstatement in IXYS inventories during the nine months ended December 31, 2002. NINE MONTHS ENDED DECEMBER 31, 2002
AS PREVIOUSLY REPORTED AS RESTATED -------- ----------- Inventories $59,100 $54,963 Costs of Goods Sold $71,115 $75,252 Gross Margin 27.6% 23.4% Net Loss $4,842 $7,531 Net Loss per Share-Basic $(0.16) $(0.25) Net Loss per Share-Diluted $(0.16) $(0.25)
"As reported before, we discovered the errors and are taking actions to account for them and rectify them. We take pride in the integrity of our management, as reflected in the fact that we are long-term holders of IXYS stock, and we guide the company towards the interests of its shareholders. Regarding inventory, we had to take account of the shifts in market conditions and adjust the value of the inventory," explained Dr. Zommer. "Our fourth quarter results show strong cash growth, which strengthens further our financial position for future growth" "This quarter we have seen a continuation of our revenue growth; however, we have also started experiencing growth pains in our ability to cope with the more complex structure of the company. As a result, errors have been discovered in our accounting for inventories. We are correcting the errors and feel that we are installing sufficient procedures to prevent this from happening in the future. We continue to review the facts and circumstances that led to the errors; however, we believe that no further adjustments relating to the errors will be required in our financial statements. We believe that such a review is both good corporate governance and instructive about avoiding similar problems in the future," said Arnold Agbayani, Chief Financial Officer. "For our guidance, we expect revenues for the June quarter to be 1-3% higher than those of the March quarter. IXYS develops and markets primarily high performance power semiconductors and control ICs that are used in controlling and converting electrical power efficiently in power systems for telecommunication infrastructure, motor drives, medical systems and transportation. IXYS also 2 serves emerging markets with digital and analog ICs that control flat panel displays, medical instruments and telecommunication products. Safe Harbor Statement The foregoing press release contains forward-looking statements. Forward-looking statements include those regarding our expectations for results from our R & D investments, our financial position for future growth, our actions to correct the bookkeeping errors and to install procedures to prevent them from happening in the future, the review of IXYS's accounting related to inventories and other accounts, our expectations that no further adjustments relating to the bookkeeping errors will be required, and our expectations for our first fiscal quarter ending June 30, 2003. Actual results may vary materially from those contained in the forward-looking statements, due to the continued slowdown in the semiconductor industry in general, our inability to cause our R & D investments to result in significant revenue producing products, difficulties in implementing the changes necessary to avoid errors in the future, and additional errors and adjustments that could be identified during the continuing review of the facts and circumstances that led to the errors in inventories. Further information on other factors that could affect IXYS is detailed and included in IXYS's 10-K, as amended, for the fiscal year ended March 31, 2002, as filed with the Securities and Exchange Commission. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements. Additional information may be obtained by visiting IXYS' website at http://www.ixys.com, or by contacting the Company directly. 3 IXYS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED)
March 31, March 31, 2003 2002 --------- --------- ASSETS Current assets: Cash and cash equivalents $ 42,842 $ 32,316 Accounts receivable, net 21,427 16,697 Inventories, net 47,611 46,317 Prepaid expenses 908 596 Deferred income taxes 2,223 2,553 --------- --------- Total current assets 115,011 98,479 Plant and equipment, net 28,905 19,238 Other assets 26,917 4,828 Deferred income taxes 11,169 2,015 --------- --------- Total assets $ 182,002 $ 124,560 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of capitalized lease obligations $ 3,238 $ 2,391 Current portion of notes payable to bank 700 700 Accounts payable 11,129 5,606 Accrued expenses and other liabilities 14,167 8,383 --------- --------- Total current liabilities 29,234 17,080 Capitalized lease and other long term obligations, net of current portion 5,042 4,888 Pension liabilities 9,924 7,373 --------- --------- Total liabilities 44,200 29,341 --------- --------- Common stock, $0.01 par value: 31,952,554 issued and 31,877,554 outstanding in March 31, 2003 and 26,902,192 issued and 26,827,192 outstanding in March 31, 2002 320 268 Additional paid in capital 144,362 92,340 Notes receivable from stockholders (913) (853) Retained earnings (accumulated deficit) (7,325) 5,827 Accumulated other comprehensive income (loss) 1,358 (2,363) --------- --------- Total stockholders' equity 137,802 95,219 --------- --------- Total liabilities and stockholders' equity $ 182,002 $ 124,560 ========= =========
4 IXYS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Three Months Ended Fiscal Year Ended March 31, March 31, ---------------------- ---------------------- 2003 2002 2003 2002 --------- --------- --------- --------- Net revenues $ 37,819 $ 20,394 $ 136,111 $ 82,821 Cost of goods sold 33,641 14,779 108,893 56,918 --------- --------- --------- --------- Gross profit 4,178 5,615 27,218 25,903 --------- --------- --------- --------- Operating expenses: Research, development and engineering 3,573 1,880 12,861 5,728 Selling, general and administrative 7,583 3,423 27,461 12,884 Restructuring charge -- -- 750 -- --------- --------- --------- --------- Total operating expenses 11,156 5,303 41,072 18,612 --------- --------- --------- --------- Operating income (loss) (6,978) 312 (13,854) 7,291 Other expense, net (2,757) (1,255) (5,558) (4,169) --------- --------- --------- --------- Income (loss) before income tax provision (benefit) (9,735) (943) (19,412) 3,122 Provision (benefit) for income tax (4,114) (361) (6,260) 1,184 --------- --------- --------- --------- Net income (loss) $ (5,621) $ (582) $ (13,152) $ 1,938 ========= ========= ========= ========= Net income (loss) per share - basic $ (0.18) $ (0.02) $ (0.43) $ 0.07 ========= ========= ========= ========= Weighted average shares used in per share calculation - basic 31,918 26,771 30,911 26,745 ========= ========= ========= ========= Net income (loss) per share - diluted $ (0.18) $ (0.02) $ (0.43) $ 0.07 ========= ========= ========= ========= Weighted average shares used in per share calculation - diluted 31,918 26,771 30,911 29,004 ========= ========= ========= =========
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