EX-99.1 3 dex991.txt PRESS RELEASE, DATED OCTOBER 18, 2001 EXHIBIT 99.1 IXYS Corporation Reports Results for Second Quarter of Fiscal Year 2002 SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 18, 2001--IXYS Corporation (NASDAQ:SYXI) today reported revenues of $20.7 million for the quarter ended ---- September 30, 2001, which is a decrease of 23.0% over the $26.9 million in revenues for the same quarter in the prior fiscal year. Sequentially, revenues decreased 19.0% from the $25.6 million reported for the quarter ended June 30, 2001. For the six months ended September 30, 2001 IXYS reported revenues of $46.3 million, which was a 7.7% decrease as compared to $50.2 million in revenues for the same six-month period in the prior fiscal year. "Given the market conditions, the reduction in revenues has been within our expectations and prior guidance to investors. We are pleased to see that over the six-month period ended September 30, 2001 our revenues show relative stability and strength. We have taken the proper actions to reduce our expenses in anticipation of the reduced revenue level," said Nathan Zommer, Chief Executive Officer of IXYS. "We have also accelerated new product development efforts as capacity to produce such products has become available. In some of our products, we have experienced revenue and unit growth on a year over year basis, and have seen a strong demand for the new products we have introduced." Dr. Zommer concluded, "Despite the difficulty of the current marketplace, we remain confident in the long term prospects of our company. We are in a position of financial strength, and we plan to utilize our strong balance sheet to take advantage of the Company's previously announced share repurchase program." Gross profit was $7.0 million, or 33.9% of net sales, for the quarter ended September 30, 2001. This compares with a gross profit of $9.6 million, or 35.8% percent of net sales for the same quarter in the prior fiscal year. The decrease in gross profit reflects a change in the mix of products sold and a 10.0% decrease in overall units sold. For the six-month period ending September 30, 2001, gross profit was $15.3 million, or 33.1% of sales. This represents a 14.2% decrease in gross profit from $17.9 million, or 35.6% of sales for the same six-month period of the prior fiscal year. Net income in the quarter ended September 30, 2001 was $1,041,000 ($0.04 per share, diluted), which is a decrease of 61.3% over net income of $2,688,000 ($0.10 per share, diluted) in the quarter ended September 30, 2000. Net income in the quarter ended September 30, 2001 includes unusual legal and consulting expenses totaling about $1.8 million. Excluding these legal and consulting expenses, net income in the quarter ended September 30, 2001 would have been about $2.2 million ($0.07 per share diluted). For the six-month period ended September 30, 2001, net income was $2.6 million ($0.09 per share, diluted), a 58.8% decrease as compared with $6.4 million ($0.24 per share, diluted), in the same six-month period of the prior fiscal year. Excluding unusual legal and consulting expenses, net income for the six-month period ended September 30, 2001 would have been $4.7 million (or $0.16 per share, diluted). Arnold Agbayani, Chief Financial Officer of IXYS, said, "In the September quarter, we had begun to see some bottoming out in the decline of the company's revenues. However, the 1. terrorist attacks launched against the United States on September 11, 2001 and the continuing fallout that these terrorist attacks may have on the power semiconductor industry and thus the demand for our products, cannot be predicted with any degree of certainty at this time. We nevertheless expect that general economic conditions, perhaps exacerbated by the uncertainty created by the fallout from the terrorist attacks, will continue to have a negative effect on our revenues in the December quarter. Accordingly, we anticipate that our December quarter revenue will show a sequential decline from our performance for the fiscal quarter ended September 30, 2001 of about 15-20%. Lacking visibility into general economic and industry performance beyond December, 2001, we cannot provide guidance for quarters beyond December 2001." IXYS develops and markets primarily high performance power semiconductor devices that are used in controlling and converting electrical power efficiently in power systems for the telecommunication and internet infrastructure, motor drives, medical systems and transportation. IXYS also serves its markets with a combination of digital and analog integrated circuits. The statements in this news release relating to our expectations for our third fiscal quarter ending December 31, 2001 and our expectations related to actions taken to reduce our expenses, new product development efforts, new product introductions and future growth are forward looking in nature, and thus involve risks and uncertainties that could cause actual results to differ from predicted results. These risks and uncertainties include the effect that a continued slowdown in the semiconductor industry in general could have on our operations. Further information on other factors that could affect the Company's operations is detailed and included in the Company's Form 10-K, as filed with the Securities and Exchange Commission, which includes the IXYS Corporation audited financial statements as of March 31, 2001 and 2000. The Company 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. 2. IXYS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
March 31, September 30, 2001 2001 --------- ------------ ASSETS (unaudited) Current assets: Cash and cash equivalents $ 45,182 $ 40,179 Accounts receivable, net 26,303 20,869 Inventories, net 34,035 40,144 Prepaid expenses 309 266 Deferred income taxes 2,561 2,561 --------- ------------ Total current assets 108,390 104,019 Plant and equipment, net 13,960 15,729 Other assets 4,749 5,227 Deferred income taxes 315 315 --------- ------------ Total assets $ 127,414 $ 125,290 ========= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of capitalized lease obligations $ 1,737 $ 1,765 Current portion of notes payable to bank 754 800 Accounts payable 10,649 5,577 Accrued expenses and other liabilities 13,243 9,508 --------- ------------ Total current liabilities 26,383 17,650 Capitalized lease obligations, net of current portion 3,425 4,923 Pension liabilities 4,882 5,235 --------- ------------ Total liabilities 34,690 27,808 --------- ------------ Common stock, $0.01 par value: Issued and outstanding: 26,662,132 in March 31, 2001 and 26,785,520 in September 30, 2001 267 268 Additional paid-in capital 91,873 92,342 Notes receivable from stockholders (823) (823) Retained earnings 3,889 6,516 Accumulated other comprehensive loss (2,482) (821) --------- ------------ Stockholders' equity 92,724 97,482 --------- ------------ Total liabilities and stockholders' equity $ 127,414 $ 125,290 ========= ============
3. IXYS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) (unaudited)
Three Months Ended Six Months Ended September 30, September 30, 2000 2001 2000 2001 -------- -------- -------- -------- Net revenues $ 26,919 $ 20,739 $ 50,193 $ 46,344 Cost of goods sold 17,271 13,706 32,325 31,005 -------- -------- -------- -------- Gross profit 9,648 7,033 17,868 15,339 -------- -------- -------- -------- Operating expenses: Research, development and engineering 1,217 1,238 2,381 2,419 Selling, general and administrative 3,515 3,069 6,546 6,546 -------- -------- -------- -------- Total operating expenses 4,732 4,307 8,927 8,965 -------- -------- -------- -------- Operating income 4,916 2,726 8,941 6,374 Other income(expense), net (584) (1,046) 1,349 (2,138) -------- -------- -------- -------- Income before income tax provision 4,332 1,680 10,290 4,236 Provision for income tax 1,644 639 3,908 1,609 -------- -------- -------- -------- Net income $ 2,688 $ 1,041 $ 6,382 $ 2,627 ======== ======== ======== ======== Net income per share - basic $ 0.11 $ 0.04 $ 0.26 $ 0.10 ======== ======== ======== ======== Weighted average shares used in per share calculation - basic 24,425 26,755 24,302 26,734 ======== ======== ======== ======== Net income per share - diluted $ 0.10 $ 0.04 $ 0.24 $ 0.09 ======== ======== ======== ======== Weighted average shares used in per share calculation - diluted 27,461 28,837 27,075 28,915 ======== ======== ======== ========
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