IXYS Corporation Announces September Quarter Results With 50% Increase in Quarterly Earnings Per Share as Compared to Last Year

MILPITAS, Calif. & BIEL, Switzerland--(BUSINESS WIRE)--October 29, 2008--IXYS Corporation (NASDAQ:IXYS), an international power semiconductor company, today reported net revenues of $77.6 million for the second fiscal quarter ended September 30, 2008, an increase of 1.9% as compared with net revenues of $76.2 million for the same period in the prior fiscal year.

For the six months ended September 30, 2008, IXYS reported net revenues of $157.0 million, an increase of 3.2% as compared with net revenues of $152.1 million for the same period in the prior fiscal year.

"IXYS’ revenues remained robust, despite the challenging economic cycle. Our continued sales strength is attributable to a business model of diversified technologies and products deployed worldwide in the industrial power, medical, transportation, renewable energy and IT markets. New product introductions enabled us to supply key core power and energy generation products that are currently in demand," stated Dr. Nathan Zommer, Chairman and CEO of IXYS. “Our success has been reflected in consistent cash generation over the past few years, which we have used for R&D, stock buybacks and other investments that bolstered our competitive advantage and our stockholders equity.”

Gross profit was $23.8 million, or 30.7% of net revenues, for the quarter ended September 30, 2008, as compared to gross profit of $20.0 million, or 26.3% of net revenues, for the same quarter in the prior fiscal year. Gross profit for the six months ended September 30, 2008 was $48.6 million, or 30.9% of net revenues, as compared to a gross profit of $42.4 million, or 27.9% of net revenues, for the same period in the prior fiscal year.

Net income for the quarter ended September 30, 2008, was $6.1 million, or $0.18 per diluted share, as compared to $3.9 million, or $0.12 per diluted share, for the same quarter in the prior fiscal year. Net income for the six months ended September 30, 2008 was $11.5 million, or $0.35 per diluted share, as compared to net income of $11.0 million, or $0.33 per diluted share, for the same period in the prior fiscal year.

Prior fiscal year results included favorable adjustments to the litigation provision of $1.2 million and $6.0 million for the three month period and the six month period, respectively.

“Even companies like IXYS, which stand on strong fundamentals and manage substantial free cash flow, are not immune to current market conditions,” commented Uzi Sasson, COO and CFO. “The prolonged economic downturn and a traditionally slow holiday season may make the December quarter challenging. Without clear visibility about a macro-economic rebound, we remain conservative and project revenues for the December 2008 quarter to be $71 million to $74 million.”

Since its founding in Silicon Valley, IXYS Corporation has been developing technology-driven products to improve power conversion efficiency, generate clean energy, improve automation, and provide advance products for the transportation, medical and telecommunication industries. IXYS is a worldwide pioneer in the development of power semiconductors and high voltage integrated circuits (HVIC) that are key to reducing the world’s dependence on fossil fuels.

Diminishing natural resources, demand for cheap energy and environmental directives for energy efficiency represent a significant challenge. IXYS’ power semiconductors and mixed-signal integrated circuits (IC) play a vital role in reducing energy costs and consumption by optimizing the energy efficiency of everyday products. With an end customer base of over 2,000 telecommunications, transportation, industrial, medical and consumer companies, IXYS is a worldwide provider of semiconductors.

Additional information may be obtained by visiting IXYS’ website at http://www.ixys.com, or by contacting the company directly.

The foregoing press release contains forward-looking statements, including those related to economic trends and conditions, the December 2008 quarter and the projection of revenues for the December 2008 quarter. Actual results may vary materially from those contained in the forward-looking statements, due to changes in customer delivery schedules, the cancellation of orders, an unanticipated decline in our business and capacity limits on our ability to manufacture our products, among other things. Further information on other factors that could affect IXYS is detailed and included in IXYS’ Form 10-Q for the fiscal quarter ended June 30, 2008, 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.

IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
	Sept. 30,		Mar. 31,
	2008		2008
ASSETS
Current assets:
Cash and cash equivalents	$	70,352	$	57,234
Accounts receivable, net		47,821		50,270
Other receivables		1,894		2,282
Inventories, net		87,144		86,516
Prepaid expenses and other current assets		3,007		4,133
Deferred income taxes		7,183		7,578
Total current assets		217,401		208,013
Plant and equipment, net		57,205		58,033
Other assets		12,613		14,238
Deferred income taxes		13,354		13,546

Total assets	$	300,573	$	293,830

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Current portion of capitalized lease obligations	$	4,118	$	4,890
Current portion of notes payable to bank		1,548		1,286
Accounts payable		17,371		21,489
Accrued expenses and other current liabilities		27,362		17,956
Total current liabilities		50,399		45,621
Capitalized lease and other long term obligations, net of current portion		28,951		30,752
Pension liabilities		15,514		17,228
Total liabilities		94,864		93,601

Common stock		359		354
Additional paid-in capital		136,327		132,125
Retained earnings		58,875		50,494
Accumulated other comprehensive income		10,148		17,256
Stockholders' equity		205,709		200,229

Total liabilities and stockholders' equity	$	300,573	$	293,830

IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
	Three Months Ended					Six Months Ended
	Sept. 30,		Sept. 30,			Sept. 30,		Sept. 30,
	2008		2007			2008		2007

Net revenues	$	77,635	$	76,165		$	156,971	$	152,066
Cost of goods sold		53,838		56,160			108,412		109,673
Gross profit		23,797		20,005			48,559		42,393
Operating expenses:
Research, development and engineering		5,431		5,131			10,825		10,204
Selling, general and administrative		10,433		9,897			21,492		20,737
Litigation provision		-		(1,195	)		-		(5,979	)
Total operating expenses		15,864		13,833			32,317		24,962
Operating income		7,933		6,172			16,242		17,431
Other income (expense), net		749		(1,217	)		1,515		(604	)

Income before income tax provision		8,682		4,955			17,757		16,827
Provision for income tax expense		2,623		1,006			6,214		5,874
Net income	$	6,059	$	3,949		$	11,543	$	10,953

Net income per share - basic	$	0.19	$	0.12		$	0.37	$	0.34

Weighted average shares used in per share calculation - basic		31,554		32,280			31,368		32,385

Net income per share - diluted	$	0.18	$	0.12		$	0.35	$	0.33

Weighted average shares used in per share calculation - diluted		32,887		33,603			32,567		33,696