10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

COMMISSION FILE NUMBER 000-26124

IXYS CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	77-0140882
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1590 BUCKEYE DRIVE

MILPITAS, CALIFORNIA 95035-7418

(Address of principal executive offices and Zip Code)

(408) 457-9000

(Registrant’s telephone number, including area code)

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 ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

The number of shares of the registrant’s common stock, $0.01 par value, outstanding as of October 23, 2014 was 31,545,600.

IXYS CORPORATION

FORM 10-Q

September 30, 2014

INDEX

	Page
PART I — FINANCIAL INFORMATION		3
ITEM 1. FINANCIAL STATEMENTS		3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS		3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS		4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME		5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS		6
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS		7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		19
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		30
ITEM 4. CONTROLS AND PROCEDURES		30
PART II — OTHER INFORMATION		31
ITEM 1. LEGAL PROCEEDINGS		31
ITEM 1A. RISK FACTORS		31
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		44
ITEM 3. DEFAULTS UPON SENIOR SECURITIES		44
ITEM 4. MINE SAFETY DISCLOSURES		44
ITEM 5. OTHER INFORMATION		44
ITEM 6. EXHIBITS		44

2

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IXYS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	September 30,			March 31,
	2014			2014
ASSETS
Current assets:
Cash and cash equivalents	$	124,944		$	98,438
Restricted cash		693			337
Accounts receivable, net of allowances of $4,039 at September 30, 2014 and $3,013 at March 31, 2014		42,419			45,707
Inventories		93,145			93,028
Prepaid expenses and other current assets		3,675			9,520
Deferred income taxes		7,782			7,975
Total current assets		272,658			255,005
Property, plant and equipment, net		48,010			50,569
Intangible assets, net		13,221			16,347
Goodwill		27,749			25,164
Deferred income taxes		24,569			24,316
Other assets		9,692			11,781
Total assets	$	395,899		$	383,182
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of capitalized lease obligations	$	1,527		$	2,468
Current portion of loans payable		969			1,028
Accounts payable		14,659			15,684
Accrued expenses and other current liabilities		36,374			50,166
Total current liabilities		53,529			69,346
Capitalized lease obligations, net of current portion		159			723
Long term loans, net of current portion		49,515			19,831
Pension liabilities		13,882			15,545
Other long term liabilities		7,105			7,105
Total liabilities		124,190			112,550
Commitments and contingencies (Note 16)
Stockholders’ equity:
Preferred stock, $0.01 par value:
Authorized: 5,000,000 shares; none issued and outstanding		—			—
Common stock, $0.01 par value:
Authorized: 80,000,000 shares; 38,067,326 issued and 31,545,600 outstanding at September 30, 2014 and 38,016,909 issued and 31,353,819 outstanding at March 31, 2014		381			380
Additional paid-in capital		207,638			206,290
Treasury stock, at cost: 6,521,726 common shares at September 30, 2014 and 6,663,090 common shares at March 31, 2014		(57,535	)		(58,782	)
Retained earnings		124,953			117,715
Accumulated other comprehensive income (loss)		(3,728	)		5,029
Total stockholders’ equity		271,709			270,632
Total liabilities and stockholders’ equity	$	395,899		$	383,182

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

IXYS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Net revenues	$	86,435		$	85,901		$	174,515		$	157,087
Cost of goods sold		60,265			58,000			123,345			108,049
Gross profit		26,170			27,901			51,170			49,038
Operating expenses:
Research, development and engineering		6,948			7,453			14,198			15,140
Selling, general and administrative		10,713			10,583			21,477			20,626
Amortization of acquired intangible assets		1,419			3,425			3,126			3,671
Total operating expenses		19,080			21,461			38,801			39,437
Operating income		7,090			6,440			12,369			9,601
Other income (expense):
Interest income		49			36			96			76
Interest expense		(322	)		(480	)		(732	)		(693	)
Other income (expense), net		2,165			(1,252	)		2,373			(1,335	)
Income before income tax provision		8,982			4,744			14,106			7,649
Provision for income tax		(3,235	)		(1,361	)		(4,784	)		(2,287	)
Net income	$	5,747		$	3,383		$	9,322		$	5,362
Net income per share:
Basic	$	0.18		$	0.11		$	0.30		$	0.17
Diluted	$	0.18		$	0.11		$	0.29		$	0.17
Cash dividends per common share	$	0.035		$	0.03		$	0.065		$	0.06
Weighted average shares used in per share calculation:
Basic		31,499			31,127			31,439			31,037
Diluted		32,235			31,849			32,142			31,737

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

IXYS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
	(unaudited)					(unaudited)
Net income	$	5,747		$	3,383	$	9,322		$	5,362
Foreign currency translation adjustments		(7,820	)		4,559		(8,100	)		5,915
Changes in market value of investments:
Changes in unrealized gain (loss), net of tax benefits of $(188) and $(342) for the three and six months ended September 30, 2014 and net of tax expense (benefit) of $134 and $(18) for the three and six months ended September 30, 2013		(350	)		250		(638	)		(35	)
Reclassification adjustment for net gains realized in net income, net of tax expense (benefit) of $0 and $(11) for the three and six months ended September 30, 2014 and net of tax expense (benefit) of $0 and $(31) for the three and six months ended September 30, 2013		—			—		(19	)		(58	)
Net change in market value of investments		(350	)		250		(657	)		(93	)
Total comprehensive income (loss)	$	(2,423	)	$	8,192	$	565		$	11,184

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

IXYS CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Six Months Ended
	September 30,
	2014			2013
Cash flows from operating activities:
Net income	$	9,322		$	5,362
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		9,148			8,597
Provision for receivable allowances		5,516			4,282
Net change in inventory provision		1,653			1,271
Foreign currency adjustments on intercompany amounts		(2,054	)		418
Stock-based compensation		1,378			1,341
Gain on investments and disposal of fixed assets		(34	)		(186	)
Changes in operating assets and liabilities, net of business acquired:
Accounts receivable		(3,249	)		(11,606	)
Inventories		(5,310	)		(3,659	)
Prepaid expenses and other current assets		5,016			(1,936	)
Other assets		790			(706	)
Accounts payable		(1,067	)		6,073
Accrued expenses and other liabilities		2,232			2,772
Pension liabilities		(657	)		(751	)
Net cash provided by operating activities		22,684			11,272
Cash flows from investing activities:
Change in restricted cash		(356	)		(17	)
Purchase of business, net of cash and cash equivalents acquired and deferred payments		(2,297	)		(20,000	)
Purchases of property and equipment		(4,609	)		(3,929	)
Proceeds from sale of investments		54			324
Net cash used in investing activities		(7,208	)		(23,622	)
Cash flows from financing activities:
Principal payments on capital lease obligations		(1,336	)		(1,247	)
Repayments of loans and notes payable		(629	)		(489	)
Repayments of deferred payment of business acquisition		(15,000	)		—
Proceeds from loans		30,000			—
Proceeds from employee equity plans		1,430			2,211
Purchases of treasury stock		—			(433	)
Payment of cash dividends to stockholders		(2,047	)		(1,865	)
Net cash provided by (used in) financing activities		12,418			(1,823	)
Effect of exchange rate fluctuations on cash and cash equivalents		(1,388	)		1,960
Net increase (decrease) in cash and cash equivalents		26,506			(12,213	)
Cash and cash equivalents at beginning of period		98,438			107,116
Cash and cash equivalents at end of period	$	124,944		$	94,903

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Unaudited Condensed Consolidated Financial Statements

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of IXYS Corporation and its wholly-owned subsidiaries. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates that require management’s most difficult judgments include, but are not limited to, revenue reserves, inventory valuation, accounting for income taxes and allocation of purchase price in business combinations. All significant intercompany transactions have been eliminated in consolidation. All adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair statement of the results for the interim periods have been made. The condensed balance sheet as of March 31, 2014 has been derived from our audited balance sheet as of that date. It is recommended that the interim financial statements be read in conjunction with our audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2014, or fiscal 2014, contained in our Annual Report on Form 10-K. Interim results are not necessarily indicative of the operating results expected for later quarters or the full fiscal year.

2. Recent Accounting Pronouncements and Accounting Changes

In July 2013, the Financial Accounting Standards Board, or FASB, issued authoritative guidance on the presentation of unrecognized tax benefits. This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset in the case of a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent such a carryforward or loss is not available at the reporting date under the applicable tax law to settle any additional income taxes that would result from the disallowance of a tax position or the deferred tax asset will not be used for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability. The guidance became effective for us in the fiscal year that began on April 1, 2014 and did not have a material impact on our financial statements.

In April 2014, FASB issued changes to the criteria for determining which disposals are required to be presented as discontinued operations. The changes require a disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results when any of the following occurs: the component of an entity or group of components of an entity meets the criteria to be classified as held for sale, the component of an entity or group or components of an entity is disposed of by sale, or the component of an entity or group of components of an entity is disposed of other than by sale. The amendments apply on a prospective basis to disposals of components of an entity that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years, with early adoption permitted. We are currently evaluating the impact of the adoption of the standard on our consolidated financial statements.

In May 2014, FASB issued a new standard on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when or as the entity satisfies a performance obligation. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early adoption is prohibited. Different transition methods are available — full retrospective method, retrospective with certain practical expedients, and a modified retrospective (cumulative effect) approach. We are currently evaluating the impact of the adoption of the standard on our financial statements.

In August 2014, FASB issued a new standard on the disclosure of uncertainties about an entity’s ability to continue as a going concern. The guidance seeks to define management’s responsibility to decide whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early application is permitted. We are currently evaluating the impact of the adoption of the standard on our financial statements.

7

3. Business Combinations

Acquired MCU Business

On June 27, 2013, we completed the acquisition of an 8-bit microcontroller product line, or the Acquired MCU Business, from the System LSI Division of Samsung Electronics Co., Ltd. The acquired product line includes microcontrollers potentially useful in a number of applications, which have to date been principally used in consumer product applications. The acquisition was intended to bolster our product portfolio and empower customers to utilize products from across our multiple product lines.

The aggregate purchase price for the acquired assets was $50.0 million. The closing payment was $20.0 million and we were obligated to pay $30.0 million in two installment payments of $15.0 million each. The first installment and interest were paid on June 26, 2014 and the second installment is due on December 31, 2014. The remaining installment bears simple interest at a variable annual rate equal to six-month LIBOR plus a 3 percentage point margin. The deferred payments and interest are included in “Accrued expenses and other current liabilities” on our unaudited condensed consolidated balance sheets.

We incurred $403,000 in legal and consulting costs related to the acquisition in fiscal 2014. The costs incurred were fully expensed and included in “Selling, general and administrative expenses”, or SG&A expenses, on our unaudited condensed consolidated statements of operations.

The following table summarizes the values of the assets acquired at the acquisition date (in thousands):

	Purchase Price Allocation
	(unaudited)
Inventories	$	800
Property, plant and equipment		36
Identifiable intangible assets		24,000
Total identifiable net assets		24,836
Goodwill		25,164
Total purchase price	$	50,000

Identifiable intangible assets consisted of developed intellectual property, customer relationships, contract backlog and a non-competition agreement. The valuation of the acquired intangibles was classified as a Level 3 measurement under the fair value measurement guidance, because the valuation was based on significant unobservable inputs and involved management judgment and assumptions about market participants and pricing. In determining fair value of the acquired intangible assets, we determined the appropriate unit of measure, the exit market and the highest and best use for the assets. The income approach and cost approach were used to estimate the fair value. The income approach indicates the fair value of an asset based on the value of the cash flows that the asset can be expected to generate in the future through a discounted cash flow method. The income approach was used to determine the fair values of developed intellectual property, the non-competition agreement, contract backlog and customer relationships. The goodwill arising from the acquisition was largely attributable to the synergies expected to be realized after our acquisition and integration of the Acquired MCU Business. The goodwill is not deductible for tax purposes.

Identified intangible assets resulting from the acquisition based on our valuation consisted of the following (in thousands):

	Fair Value (In thousands)		Amortization Method	Estimated Useful Life (In months)
			(unaudited)
Developed intellectual property	$	11,504	Straight-line	60
Customer relationships		6,920	Accelerated	36
Contract backlog		5,155	Straight-line	9
Non-competition agreement		421	Straight-line	60
Total	$	24,000

8

Supplemental Pro Forma Financial Information:

The following pro forma summary gives effect to the acquisition of the Acquired MCU Business as if it had occurred at the beginning of fiscal 2013. The pro forma financial information reflects the business combination accounting effects resulting from this acquisition including our amortization charges from acquired intangible assets, the acquisition related expenses and the interest expenses on deferred payments of the acquisition. The summary is provided for illustrative purposes only and is not necessarily indicative of the consolidated results of operations for future periods.

The Acquired MCU Business’s fiscal year ended on December 31, while our fiscal year ends on March 31. As such, the financial information of the Acquired MCU Business is included in the following unaudited pro forma table so as to align with the reporting periods of our fiscal quarters. In the following unaudited pro forma table, the financial information for the three months ended September 30, 2013 includes the historical financial results of IXYS Corporation for the three months ended September 30, 2013; the financial information for the six months ended September 30, 2013 includes the historical financial results of IXYS Corporation for the six months ended September 30, 2013 and the historical financial results of the Acquired MCU Business for the three months ended March 31, 2013 (in thousands, except per share data):

	Three Months Ended September 30, 2013		Six Months Ended September 30, 2013
	(unaudited)		(unaudited)
Pro forma net revenues	$	85,901	$	180,985
Pro forma net income	$	5,721	$	10,156
Pro forma net income per share (basic)	$	0.18	$	0.33
Pro forma net income per share (diluted)	$	0.18	$	0.32

Other Acquisition

In the quarter ended June 30, 2014, we completed an acquisition for a cash consideration of $2.3 million, net of cash acquired. The acquisition resulted in $2.8 million of goodwill and we assumed debt of $723,000. During the quarter ended September 30, 2014, we increased the goodwill by $17,000 due to changes in net value of acquired assets. The goodwill balance as of September 30, 2014 reflected a reduction of $196,000 caused by changes in the foreign exchange translation rate. This acquisition was not significant to our unaudited condensed consolidated financial statements for the current period.

As of September 30, 2014, we had not yet finalized the valuation of the deferred tax assets in connection with this acquisition. The finalization of these amounts is not expected to have a material effect on our consolidated financial position.

4. Fair Value

We account for certain assets and liabilities at fair value. In determining fair value, we consider its principal or most advantageous market and the assumptions that market participants would use when pricing, such as inherent risk, restrictions on sale and risk of non-performance. The fair value hierarchy is based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy:

Level 1 — Quoted prices for identical instruments in active markets.

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.

Level 3 — Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.

9

Assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of September 30, 2014 and March 31, 2014 (in thousands):

	September 30, 2014 (1)								March 31, 2014 (1)
				Fair Value Measured at Reporting Date Using								Fair Value Measured at Reporting Date Using
Description	Total			Level 1		Level 2			Total			Level 1		Level 2
	(unaudited)								(unaudited)
Money market funds (2)	$	89,646		$	89,646	$	—		$	59,706		$	59,706	$	—
Marketable equity securities (3)		3,124			3,124		—			4,158			4,158		—
Auction rate preferred securities (3)		350			—		350			350			—		350
Derivative liabilities (4)		(67	)		—		(67	)		(112	)		—		(112	)
Total	$	93,053		$	92,770	$	283		$	64,102		$	63,864	$	238

(1) We did not have any recurring assets whose fair value was measured using significant unobservable inputs.

(2) Included in “Cash and cash equivalents” on our unaudited condensed consolidated balance sheets.

(3) Included in “Other assets” on our unaudited condensed consolidated balance sheets.

(4) Included in “Accrued expenses and other current liabilities” on our unaudited condensed consolidated balance sheets.

We measure our marketable securities and derivative contracts at fair value. Marketable securities are valued using the quoted market prices and are therefore classified as Level 1 estimates.

From time to time, we use derivative instruments to manage exposure to changes in interest rates and currency exchange rates, and the fair values of these instruments are recorded on the balance sheets. We have elected not to designate these instruments as accounting hedges. The changes in the fair value of these instruments are recorded in the current period’s statement of operations and are included in other income (expense), net. All of our derivative instruments are traded on over-the-counter markets where quoted market prices are not readily available. For those derivatives, we measure fair value using prices obtained from the counterparties with whom we have traded. The counterparties price the derivatives based on models that use primarily market observable inputs, such as yield curves and option volatilities. Accordingly, we classify these derivatives as Level 2. See Note 9, “Borrowing and Deferred Payment Arrangements” for further information regarding the terms of the derivative contract.

Auction rate preferred securities, or ARPS, are stated at par value based upon observable inputs including historical redemptions received from the ARPS issuers. All of our ARPS have credit ratings of at least AA, are 100% collateralized and continue to pay interest in accordance with their contractual terms. Additionally, the collateralized asset value ranges exceed the value of our ARPS by approximately 300 percent. Accordingly, the remaining ARPS balance was categorized as Level 2 for fair value measurement in accordance with the authoritative guidance provided by FASB and was recorded at full par value on the unaudited condensed consolidated balance sheets as of September 30, 2014 and March 31, 2014. We currently believe that the ARPS values are not impaired and as such, no impairment has been recognized against the investment. If future auctions fail to materialize and the credit rating of the issuers deteriorates, we may be required to record an impairment charge against the value of our ARPS.

Cash and cash equivalents are recognized and measured at fair value in our consolidated financial statements. Accounts receivable and prepaid expenses and other current assets are financial assets with carrying values that approximate fair value. Accounts payable and accrued expenses and other current liabilities are financial liabilities with carrying values that approximate fair value.

Our indebtedness for borrowed money and our installment payment obligations approximate fair value, as the interest rates either adjust according to the market rates or the interest rates approximate the market rates. The estimated fair value of these items was approximately $66.1 million and $51.6 million as of September 30, 2014 and March 31, 2014, respectively. Our indebtedness for borrowed money, which primarily consists of loans from banks, and our installment payment obligation, which consists of the remaining deferred payment for our Acquired MCU Business, are categorized as Level 2 for fair value measurement. See Note 10, “Pension Plans” for a discussion of pension liabilities.

10

5. Other Assets

Other assets consist of the following (in thousands):

	September 30,		March 31,
	2014		2014
	(unaudited)
Marketable equity securities	$	3,124	$	4,158
Auction rate preferred securities		350		350
Long-term equity investments		5,564		5,921
Other items		654		1,352
Total	$	9,692	$	11,781

6. Inventories

Inventories consist of the following (in thousands):

	September 30,		March 31,
	2014		2014
	(unaudited)
Raw materials	$	21,458	$	19,957
Work in process		42,824		44,165
Finished goods		28,863		28,906
Total	$	93,145	$	93,028

7. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	September 30,		March 31,
	2014		2014
	(unaudited)
Uninvoiced goods and services	$	7,803	$	9,098
Compensation and benefits		7,245		6,880
Income taxes		2,291		—
Short-term installment payment obligation		15,639		30,781
Commission, royalties and other		3,396		3,407
Total	$	36,374	$	50,166

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8. Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in connection with our acquisitions. The acquisition of the Acquired MCU Business was completed on June 27, 2013 and resulted in goodwill of $25.2 million. We recorded preliminary goodwill of $2.8 million related to an acquisition completed during the quarter ended June 30, 2014. The components in identified intangible assets of our company as of September 30, 2014 and March 31, 2014 were as follows (in thousands):

	September 30, 2014						March 31, 2014
	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets		Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(unaudited)						(unaudited)
Developed intellectual property	$	16,304	$	6,534	$	9,770	$	16,304	$	4,984	$	11,320
Customer relationships		13,020		10,137		2,883		13,020		8,695		4,325
Contract backlog		7,155		7,155		—		7,155		7,155		—
Other intangible assets		1,608		1,040		568		1,608		906		702
Total identifiable intangible assets	$	38,087	$	24,866	$	13,221	$	38,087	$	21,740	$	16,347

9. Borrowing and Deferred Payment Arrangements

Bank of the West

On December 6, 2013, we entered into an Amended and Restated Credit Agreement with Bank of the West, or BOTW, for a revolving line of credit of $50.0 million. All amounts owed under the credit agreement are due and payable on November 30, 2015. Borrowings may be repaid and re-borrowed at any time during the term of the credit agreement. The obligations are guaranteed by two of our subsidiaries. At September 30, 2014, the outstanding principal under the credit agreement was $45.0 million.

The credit agreement provides different interest rate alternatives under which we may borrow funds. We may elect to borrow based on LIBOR plus a margin, an alternative base rate plus a margin or a floating rate plus a margin. The margin can range from 0.75% to 2.5%, depending on interest rate alternatives and on our leverage of liabilities to effective tangible net worth. The effective interest rate as of September 30, 2014 was 1.95%. An unused commitment fee is also payable. It ranges from 0.25% to 0.625%, depending on leverage.

The credit agreement is subject to a set of financial covenants, including minimum effective tangible net worth, the ratio of cash, cash equivalents and accounts receivable to current liabilities, profitability, a leverage ratio and a minimum amount of U.S. domestic cash on hand. At September 30, 2014, we complied with all of these financial covenants.

The credit agreement also includes a $3.0 million letter of credit subfacility. See Note 16, “Commitments and Contingencies” for further information regarding the terms of the subfacility.

IKB Deutsche Industriebank

On June 10, 2005, IXYS Semiconductor GmbH, our German subsidiary, borrowed €10.0 million, or about $12.2 million at the time, from IKB Deutsche Industriebank. This loan is partially collateralized by a security interest in our facility in Lampertheim, Germany and is expected to be paid in full on June 30, 2020. The outstanding balance at September 30, 2014 was €3.8 million, or $4.9 million.

The interest rate on the loan is determined by adding the then effective three month Euribor rate and a margin. The margin can range from 0.7% to 1.25%, depending on the calculation of a ratio of indebtedness to cash flow for our German subsidiary. In June 2010, we entered into an interest rate swap agreement commencing June 30, 2010. The swap agreement has a fixed interest rate of 1.99% and expires on June 30, 2015. The effective interest rate on the loan as of September 30, 2014 was 2.69%. The swap is not designated as a hedge in the financial statements. See Note 4, “Fair Value” for further information regarding the derivative contract.

During each fiscal quarter, a principal payment of €167,000, or about $212,000, and a payment of accrued interest are required. Financial covenants for a ratio of indebtedness to cash flow, a ratio of equity to total assets and a minimum stockholders’ equity for the German subsidiary must be satisfied for the loan to remain in good standing. The loan may be prepaid in whole or in part at the end of a fiscal quarter without penalty. At September 30, 2014, we complied with the financial covenants. The loan is partially collateralized by a security interest in the facility owned by our company in Lampertheim, Germany.

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Acquired MCU Business Deferred Payments

We were obligated to pay $30.0 million in two installment payments of $15.0 million each as partial purchase price for the Acquired MCU Business. The first installment and interest were paid on June 26, 2014 and the second installment is due on December 31, 2014. The remaining installment bears simple interest at a variable annual rate equal to six-month LIBOR plus a 3 percentage point margin. The deferred payments and interest accruals are included in “Accrued expenses and other current liabilities” on our unaudited condensed consolidated balance sheets. The effective interest rate of the deferred payments as of September 30, 2014 was 3.33%.

Loans Assumed from Business Acquisition

We assumed loans of approximately $723,000 related to an acquisition completed during the quarter ended June 30, 2014. The assumed borrowings were non-interest loans from government agencies to support the research and development activities with maturity dates varying from fiscal 2017 to fiscal 2021, other than a loan of $99,000 that we paid off during the quarter ended September 30, 2014.

10. Pension Plans

We maintain three defined benefit pension plans: one for United Kingdom employees, one for German employees, and one for Philippine employees. We deposit funds for these plans, consistent with the requirements of local law, with investment management companies, insurance companies, banks or trustees and accrue for the unfunded portion of the obligations. The measurement date for the projected benefit obligations and the plan assets is March 31. The United Kingdom and German plans have been curtailed. As such, the plans are closed to new entrants and no credit is provided for additional periods of service. The German plan was held by a separate legal entity. As of September 30, 2014, the German defined benefit plan was completely unfunded. We expect to contribute approximately $1.1 million to the United Kingdom and the Philippines plans in the fiscal year ending March 31, 2015. This contribution is primarily contractual.

The net periodic pension expense includes the following components (in thousands):

	Three Months Ended September 30,						Six Months Ended September 30,
	2014			2013			2014			2013
	(unaudited)						(unaudited)
Service cost	$	26		$	27		$	52		$	55
Interest cost on projected benefit obligation		467			461			940			919
Expected return on plan assets		(494	)		(411	)		(991	)		(820	)
Recognized actuarial loss		18			57			36			113
Net periodic pension expense	$	17		$	134		$	37		$	267

Information on Plan Assets

We report and measure the plan assets of our defined benefit pension plans at fair value. The table below sets forth the fair value of our plan assets as of September 30, 2014 and March 31, 2014, using the same three-level hierarchy of fair-value inputs described in Note 4, “Fair Value” (in thousands):

	September 30, 2014											March 31, 2014
Description	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3		Total
	(unaudited)											(unaudited)
Cash and cash funds	$	2,483	$	—		$	—		$	2,483		$	1,523	$	—		$	—	$	1,523
Currency contracts		—		(27	)		—			(27	)		—		(4	)		—		(4	)
Equity		19,431		529			6			19,966			20,946		439			2		21,387
Fixed interest		744		5,975			1			6,720			749		5,323			1		6,073
Mortgage backed securities		—		16			—			16			—		15			—		15
Swaps and other		—		61			(8	)		53			1		18			—		19
Total	$	22,658	$	6,554		$	(1	)	$	29,211		$	23,219	$	5,791		$	3	$	29,013

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11. Employee Equity Incentive Plans

Stock Purchase and Stock Option Plans

The 2009 Equity Incentive Plan, the 2011 Equity Incentive Plan and the 2013 Equity Incentive Plan

On September 10, 2009, our stockholders approved the 2009 Equity Incentive Plan, or the 2009 Plan, under which 900,000 shares of our common stock are reserved for the grant of stock options and other equity incentives. On September 16, 2011, our stockholders approved the 2011 Equity Incentive Plan, or the 2011 Plan, under which 600,000 shares of our common stock are reserved for the grant of stock options and other equity incentives. On August 30, 2013, our stockholders approved the 2013 Equity Incentive Plan, or the 2013 Plan, under which 2,000,000 shares of our common stock are reserved for the grant of stock options and other equity incentives. The 2009 Plan, the 2011 Plan and the 2013 Plan are referred to as the Plans.

Stock Options

Under the Plans, nonqualified and incentive stock options may be granted to employees, consultants and non-employee directors. Generally, the per share exercise price shall not be less than 100% of the fair market value of a share on the grant date. The Board of Directors has the full power to determine the provisions of each option issued under the Plans. While we may grant options that become exercisable at different times or within different periods, we have primarily granted options that vest over four years. The options, once granted, expire ten years from the date of grant.

Stock Awards

Stock awards, denominated restricted stock under the 2009 Plan and the 2011 Plan, may be granted to any employee, director or consultant under the Plans. Pursuant to a stock award, we will issue shares of common stock. Shares that are subject to restriction will be released from restriction if certain requirements, including continued performance of services, are met.

Stock Appreciation Rights

Awards of stock appreciation rights, or SARs, may be granted to employees, consultants and non-employee directors pursuant to the Plans. A SAR is payable on the difference between the market price at the time of exercise and the exercise price at the date of grant. In any event, the exercise price of a SAR shall not be less than 100% of the fair market value of a share on the grant date and shall expire no later than ten years from the grant date. Upon exercise, the holder of a SAR shall be entitled to receive payment either in cash or a number of shares by dividing such cash amount by the fair market value of a share on the exercise date.

Restricted Stock Units

Restricted stock units, denominated performance units in the 2009 Plan, may be granted to employees, consultants and non-employee directors under the Plans. Each restricted stock unit shall have a value equal to the fair market value of one share. After the applicable performance period has ended, the holder will be entitled to receive a payment, either in cash or in the form of shares, based on the number of restricted stock units earned over the performance period, to be determined as a function of the extent to which the corresponding performance goals or other vesting provisions have been achieved.

Employee Stock Purchase Plan

The Board of Directors has approved the Amended and Restated 1999 Employee Stock Purchase Plan, or the Purchase Plan, and reserved a total of 1,550,000 shares of common stock for issuance under the Purchase Plan. Under the Purchase Plan, all eligible employees may purchase our common stock at a price equal to 85% of the lower of the fair market value at the beginning of the offer period or the semi-annual purchase date. Stock purchases are limited to 15% of an employee’s eligible compensation. During the six months ended September 30, 2014, there were 50,417 shares purchased under the Purchase Plan, leaving approximately 387,073 shares available for purchase under the Purchase Plan in the future.

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Stock-Based Compensation

The following table summarizes the effects of stock-based compensation charges (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
Statement of Operations Classifications	2014		2013		2014		2013
	(unaudited)				(unaudited)
Cost of goods sold	$	102	$	83	$	210	$	249
Research, development and engineering		189		248		378		456
Selling, general and administrative expenses		406		339		790		636
Stock-based compensation effect in income before taxes		697		670		1,378		1,341
Provision for income taxes (1)		244		208		482		416
Net stock-based compensation effects in net income	$	453	$	462	$	896	$	925

(1) Calculated at the U.S. statutory federal income tax rate of 35% in fiscal 2015 and an estimated income tax rate of 31% in fiscal 2014.

During the six months ended September 30, 2014, the unaudited condensed consolidated statements of operations and cash flows do not reflect any tax benefit for the tax deduction from option exercises and other awards. As of September 30, 2014, approximately $5.7 million in stock-based compensation is to be recognized for unvested stock options granted under our equity incentive plans. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.7 years.

The Black-Scholes option pricing model is used to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our stock purchase plan. The weighted average estimated fair values of employee stock option grants and rights granted under the 1999 Employee Stock Purchase Plan, as well as the weighted average assumptions that were used in calculating such values during the six months ended September 30, 2014 and 2013, were based on estimates at the date of grant as follows:

	Stock Options												Purchase Plan (1)
	Three Months Ended September 30,						Six Months Ended September 30,						Six Months Ended September 30,
	2014			2013			2014			2013			2014			2013
Weighted average estimated fair value of grant per share	$	5.54		$	4.95		$	5.54		$	4.95		$	2.90		$	2.60
Risk-free interest rate		1.8	%		1.9	%		1.8	%		1.9	%		0.1	%		0.1	%
Expected term in years		6.25			6.07			6.25			6.07			0.5			0.5
Volatility		52.2	%		55.5	%		52.2	%		55.5	%		34.5	%		38.5	%
Dividend yield		1.0	%		0	%		1.0	%		0	%		1.06	%		0	%

(1) Under the stock purchase plan, rights to purchase shares are only granted during the first and third quarters of each fiscal year.

Activity with respect to outstanding stock options for the six months ended September 30, 2014 was as follows:

	Number of Shares			Weighted Average Exercise Price Per Share		Intrinsic Value (1)
				(unaudited)
						(000)
Balance at March 31, 2014		5,201,635		$	10.22
Options granted		249,000		$	11.83
Options exercised		(259,750	)	$	8.63	$	1,043
Options cancelled		(75,250	)	$	11.37
Options expired		(52,500	)	$	10.74
Balance at September 30, 2014		5,063,135		$	10.36
Exercisable at September 30, 2014		3,863,385		$	10.12
Exercisable at March 31, 2014		3,865,885		$	10.00

(1) Represents the difference between the exercise price and the value of our common stock at the time of exercise.

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12. Accumulated Other Comprehensive Income (Loss)

The components and the changes in accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2014 and 2013 were as follows (in thousands):

	Foreign Currency			Unrealized Gains (Losses) on Securities			Defined Benefit Pension Plans			Accumulated Other Comprehensive Income (Loss)
	(unaudited)
Balance as of March 31, 2014	$	10,535		$	325		$	(5,831	)	$	5,029
Other comprehensive income (loss) before reclassifications		(8,100	)		(638	)		—			(8,738	)
Net losses (gains) reclassified from accumulated other comprehensive income		—			(19	)		—			(19	)
Net current period other comprehensive income (loss)		(8,100	)		(657	)		—			(8,757	)
Balance as of September 30, 2014	$	2,435		$	(332	)	$	(5,831	)	$	(3,728	)
	Foreign Currency			Unrealized Gains (Losses) on Securities			Defined Benefit Pension Plans			Accumulated Other Comprehensive Income (Loss)
	(unaudited)
Balance as of March 31, 2013	$	2,982		$	60		$	(6,135	)	$	(3,093	)
Other comprehensive income (loss) before reclassifications		5,915			(35	)		—			5,880
Net losses (gains) reclassified from accumulated other comprehensive income		—			(58	)		—			(58	)
Net current period other comprehensive income (loss)		5,915			(93	)		—			5,822
Balance as of September 30, 2013	$	8,897		$	(33	)	$	(6,135	)	$	2,729

The amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended September 30, 2014 and 2013 are as follows (in thousands):

Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income										Impacted Line Item on Consolidated Income Statements
	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014			2013
	(unaudited)				(unaudited)
Net gain on investments	$	—	$	—	$	30		$	89		Other income (expense), net
Tax impact		—		—		(11	)		(31	)	Provision for income tax
Total reclassifications for the period	$	—	$	—	$	19		$	58		Income before income tax provision

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13. Computation of Earnings per Share

Basic and diluted earnings per share are calculated as follows (in thousands, except per share amounts):

	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Net income	$	5,747	$	3,383	$	9,322	$	5,362
Weighted average shares—basic		31,499		31,127		31,439		31,037
Weighted average shares—diluted		32,235		31,849		32,142		31,737
Net income per share—basic	$	0.18	$	0.11	$	0.30	$	0.17
Net income per share—diluted	$	0.18	$	0.11	$	0.29	$	0.17

Diluted weighted average shares includes approximately 736,000 and 722,000 common equivalent shares from stock options for the three months ended September 30, 2014 and 2013, and approximately 703,000 and 700,000 common equivalent shares from stock options for the six months ended September 30, 2014 and 2013.

Basic net income available per common share is computed using net income and the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed using net income and the weighted average number of common shares outstanding, assuming dilution, which includes potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of restricted stock units using the treasury stock method. During the three and six months ended September 30, 2014, there were outstanding weighted average options to purchase 2,318,679 and 2,507,755 shares, respectively, that were not included in the computation of diluted net income per share since the exercise prices of the options exceeded the market price of the common stock. During the three and six months ended September 30, 2013, there were outstanding weighted average options to purchase 2,761,044 and 2,663,782 shares, respectively, that were not included in the computation of diluted net income per share since the exercise prices of the options exceeded the market price of the common stock. These options could dilute earnings per share in future periods if the market price of the common stock increases.

14. Segment and Geographic Information

We have a single operating segment. This operating segment is comprised of semiconductor products used primarily in power-related applications. While we have separate legal subsidiaries with discrete financial information, we have one chief operating decision maker with highly integrated businesses. Our net revenues by major geographic area (based on destination) were as follows (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
United States	$	21,502	$	22,526	$	44,006	$	44,084
Europe and the Middle East
France		1,897		1,329		3,749		2,632
Germany		8,026		9,509		16,475		17,162
Italy		909		1,021		2,382		1,994
Russia		2,157		899		2,860		1,380
Sweden		1,309		1,288		2,594		2,668
Switzerland		853		1,077		1,671		2,114
United Kingdom		5,822		5,411		11,201		10,747
Other		5,957		6,046		12,223		11,802
Asia Pacific
China		20,480		20,267		40,882		34,941
Japan		2,161		1,701		3,962		3,406
Korea		5,689		5,440		12,128		7,304
Malaysia		1,490		920		3,122		1,623
Singapore		2,913		3,151		6,070		5,744
Other		2,685		2,590		5,843		4,089
Rest of the World
India		1,380		1,199		2,629		2,547
Other		1,205		1,527		2,718		2,850
Total	$	86,435	$	85,901	$	174,515	$	157,087

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The following table sets forth net revenues for each of our product groups for the three and six months ended September 30, 2014 and 2013 (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Power semiconductors	$	55,780	$	59,720	$	113,748	$	111,386
Integrated circuits		23,438		20,945		47,320		34,600
Systems and RF power semiconductors		7,217		5,236		13,447		11,101
Total	$	86,435	$	85,901	$	174,515	$	157,087

For the three and six months ended September 30, 2014, a distributor accounted for 11.4% and 10.9% of our net revenues, respectively. For the six months ended September 30, 2013, this distributor accounted for 10.6% of our net revenues. For the three and six months ended September 30, 2013, another distributor accounted for 12.1% and 12.5% of our net revenues, respectively.

15. Income Taxes

For the three and six months ended September 30, 2014, we recorded income tax provisions of $3.2 million and $4.8 million, reflecting effective tax rates of 36.0% and 33.9%, respectively. For the three and six months ended September 30, 2013, we recorded income tax provisions of $1.4 million and $2.3 million, reflecting effective tax rates of 28.7% and 29.9%, respectively. For the three and six months ended September 30, 2014, the effective tax rates were affected by changes in estimates of annual income in domestic and foreign jurisdictions. For the three and six months ended September 30, 2013, the effective tax rates were affected by changes in estimates of annual income in domestic and foreign jurisdictions and certain discrete items.

16. Commitments and Contingencies

Legal Proceedings

We are currently involved in a variety of legal matters that arise in the normal course of business. Based on information currently available, management does not believe that the ultimate resolution of these matters will have a material adverse effect on our financial condition, results of operations and cash flows. Were an unfavorable ruling to occur, there exists the possibility of a material adverse impact on the results of operations of the period in which the ruling occurs.

Bank of the West

On December 6, 2013, we entered into an Amended and Restated Credit Agreement with BOTW for a revolving line of credit of $50.0 million. All amounts owed under the credit agreement are due and payable on November 30, 2015. Borrowings may be repaid and re-borrowed at any time during the term of the credit agreement. The obligations are guaranteed by two of our subsidiaries. The credit agreement includes a letter of credit subfacility, under which BOTW agrees to issue letters of credit of up to $3.0 million. However, borrowing under this subfacility is limited to the extent of availability under the $50.0 million revolving line of credit. At September 30, 2014, the outstanding principal under the credit agreement was $45.0 million. See Note 9, “Borrowing and Deferred Payment Arrangements” for further information regarding the terms of the credit agreement.

Acquired MCU Business Deferred Payments

We were obligated to pay $30.0 million in two installment payments of $15.0 million each as partial purchase price for the acquisition of the Acquired MCU Business. The first installment and interest were paid on June 26, 2014 and the second installment is due on December 31, 2014. See Note 3, “Business Combinations” and Note 9, “Borrowing and Deferred Payment Arrangements” for further information regarding the acquisition and the payment information.

Other Commitments and Contingencies

On occasion, we provide limited indemnification to customers against intellectual property infringement claims related to our products. To date, we have not experienced significant activity or claims related to such indemnifications. We also provide in the normal course of business indemnification to our officers, directors and selected parties. We are unable to estimate any potential future liability, if any. Therefore, no liability for these indemnification agreements has been recorded as of September 30, 2014 and March 31, 2014.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion contains forward-looking statements, which are subject to certain risks and uncertainties, including, without limitation, those described elsewhere in this Form 10-Q and, in particular, in Item 1A of Part II hereof. Actual results may differ materially from the results discussed in the forward-looking statements. For a discussion of risks that could affect future results, see “Item 1A. Risk Factors.” All forward-looking statements included in this document are made as of the date hereof, based on the information available to us as of the date hereof, and we assume no obligation to update any forward-looking statement, except as may be required by law.

Overview

We are a multi-market integrated semiconductor company. Our three principal product groups are: power semiconductors; integrated circuits, or ICs; and systems and radio frequency, or RF, power semiconductors.

Our power semiconductors improve system efficiency and reliability by converting electricity at relatively high voltage and current levels into the finely regulated power required by electronic products. We focus on the market for power semiconductors that are capable of processing greater than 200 watts of power.

We also design, manufacture and sell integrated circuits for a variety of applications. Our analog and mixed-signal ICs are principally used in telecommunications applications. Our mixed signal application-specific ICs, or ASICs, address the requirements of the medical imaging equipment and display markets. Our power management and control ICs are used in conjunction with our power semiconductors. Included among our ICs, our microcontrollers provide application-specific, embedded system-on-chip, or SoC, solutions for the industrial and consumer markets.

Our systems include laser diode drivers, high voltage pulse generators and modulators, and high power subsystems, sometimes known as stacks, that are principally based on our high power semiconductor devices. Our RF power semiconductors enable circuitry that amplifies or receives radio frequencies in wireless and other microwave communication applications, medical imaging applications and defense and space applications.

Over the past two quarters, our net revenues have decreased. Our revenues from sales of power semiconductors and ICs decreased, while our revenues from sales of RF power semiconductors and systems increased. Comparing the same periods, sales to major application markets decreased, except that sales to the industrial and commercial market fluctuated from quarter to quarter. Geographically, sales to the United States and Asia Pacific areas decreased while sales to Europe increased.

From the quarter ended June 30, 2014 to the quarter ended September 30, 2014, gross profit margin increased slightly due to an improvement in production efficiency and a shift in product mix. The proportion of our revenues obtained through distribution decreased primarily because revenues shifted away from applications that are traditionally purchased through distributors, such as industrial and commercial applications. We expect our selling, general and administrative expenses, or SG&A expenses, and our research, development and engineering expenses, or R&D expenses, to remain relatively flat in the quarter ended December 31, 2014.

Critical Accounting Policies and Significant Management Estimates

The discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, management evaluates the reasonableness of its estimates. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily available from other sources. Actual results may differ materially from these estimates under different assumptions or conditions.

We believe the following critical accounting policies require that we make significant judgments and estimates in preparing our consolidated financial statements.

Revenue recognition. Revenue is recognized when there is persuasive evidence that an arrangement exists, when delivery has occurred, when the price to the buyer is fixed or determinable and when collectability of the receivable is reasonably assured. These elements are met when title to the products is passed to the buyer, which is generally when product is shipped to the customer with sale terms ex-works, or EXW, or when product is delivered to the customer with sales terms delivered duty paid, or DDP.

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We sell to distributors and original equipment manufacturers, or OEMs. Approximately 54.9% of our revenues in the six months ended September 30, 2014 and 56.9% of our net revenues in the six months ended September 30, 2013 were from distributors. We provide some of our distributors with the following programs: stock rotation and ship and debit.

Reserves for sales returns and allowances, including allowances for so called “ship and debit” transactions, are recorded at the time of shipment, and are based on historical levels of returns and current economic trends and changes in customer demand.

Accounts receivable from distributors are recognized and inventory is relieved when title to inventories transfer, typically upon shipment from us, at which point we have a legally enforceable right to collection under normal payment terms. Under certain circumstances, where we are not able to reasonably and reliably estimate the actual returns, revenues and costs relating to distributor sales are deferred until products are sold by the distributors to the distributors’ end customers. Deferred amounts are presented net and included under “Accrued expenses and other liabilities.”

We state our revenues net of any taxes collected from customers that are required to be remitted to various government agencies. The amount of taxes collected from customers and payable to governmental entities is included under “Accrued expenses and other liabilities.” Shipping and handling costs are included in cost of sales.

Allowance for sales returns. We maintain an allowance for sales returns based on estimated product returns by our customers. We estimate our allowance for sales returns based on our historical return experience, current economic trends, changes in customer demand, known returns we have not received and other assumptions. If we were to make different judgments or utilize different estimates, the amount and timing of our revenue could be materially different. Given that our revenues consist of a high volume of relatively similar products, to date our actual returns and allowances have not fluctuated significantly from period to period, and our returns provisions have historically been reasonably accurate. This allowance is included as part of the accounts receivable allowance on the balance sheet and as a reduction of revenues in the statement of operations.

Allowance for stock rotation. We also provide “stock rotation” to select distributors. The rotation allows distributors to return a percentage of the previous six months’ sales in exchange for orders of an equal or greater amount. In the six months ended September 30, 2014 and 2013, approximately $1.1 million and $754,000, respectively, of products were returned to us under the program. We establish the allowance for sales to distributors except in cases where the revenue recognition is deferred and recognized upon sale by the distributor of products to the end-customer. The allowance, which is management’s best estimate of future returns, is based upon the historical experience of returns and inventory levels at the distributors. This allowance is included as part of the accounts receivable allowance on the balance sheet and as a reduction of revenues in the statement of operations. Should distributors increase stock rotations beyond our estimates, our statements would be adversely affected.

Allowance for ship and debit. Ship and debit is a program designed to assist distributors in meeting competitive prices in the marketplace on sales to their end-customers. Ship and debit requires a request from the distributor for a pricing adjustment for a specific part for a customer sale to be shipped from the distributor’s stock. We have no obligation to accept this request. However, it is our historical practice to allow some companies to obtain pricing adjustments for inventory held. We receive periodic statements regarding our products held by our distributors. Ship and debit authorizations may cover current and future distributor activity for a specific part for sale to a distributor’s customer. At the time we record sales to distributors, we provide an allowance for the estimated future distributor activity related to such sales since it is probable that such sales to distributors will result in ship and debit activity. The sales allowance requirement is based on sales during the period, credits issued to distributors, distributor inventory levels, historical trends, market conditions, pricing trends we see in our direct sales activity with original equipment manufacturers and other customers, and input from sales, marketing and other key management. We believe that the analysis of these inputs enables us to make reliable estimates of future credits under the ship and debit program. This analysis requires the exercise of significant judgments. Our actual results to date have approximated our estimates. At the time the distributor ships the part from stock, the distributor debits us for the authorized pricing adjustment. This allowance is included as part of the accounts receivable allowance on the balance sheet and as a reduction of revenues in the statement of operations. If competitive pricing were to decrease sharply and unexpectedly, our estimates might be insufficient, which could significantly adversely affect our operating results.

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Additions to the ship and debit allowance are estimates of the amount of expected future ship and debit activity related to sales during the period. Additional allowances reduce revenues and gross profit in the period. The following table sets forth the beginning and ending balances of, additions to, and deductions from, our allowance for ship and debit during the six months ended September 30, 2014 (in thousands):

	(unaudited)
Balance at March 31, 2014	$	1,071
Additions		1,575
Deductions		(1,474	)
Balance at June 30, 2014		1,172
Additions		1,316
Deductions		(1,303	)
Balance at September 30, 2014		1,185

Allowance for doubtful accounts. We maintain an allowance for doubtful accounts for estimated losses from the inability of our customers to make required payments. We evaluate our allowance for doubtful accounts based on the aging of our accounts receivable, the financial condition of our customers and their payment history, our historical write-off experience and other assumptions. If we were to make different judgments of the financial condition of our customers or the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. This allowance is reported on the balance sheet as part of the accounts receivable allowance and is included on the statement of operations as part of selling, general and administrative expenses. This allowance is based on historical losses and management’s estimates of future losses.

Inventories. Inventories are recorded at the lower of standard cost, which approximates actual cost on a first-in-first-out basis, or market value. Our accounting for inventory costing is based on the applicable expenditure incurred, directly or indirectly, in bringing the inventory to its existing condition. Such expenditures include acquisition costs, production costs and other costs incurred to bring the inventory to its use. As it is impractical to track inventory from the time of purchase to the time of sale for the purpose of specifically identifying inventory cost, our inventory is, therefore, valued based on a standard cost, given that the materials purchased are identical and interchangeable at various production processes. We review our standard costs on an as-needed basis, but in any event at least once a year, and update them as appropriate to approximate actual costs. The authoritative guidance provided by FASB requires certain abnormal expenditures to be recognized as expenses in the current period instead of capitalized in inventory. It also requires that the amount of fixed production overhead allocated to inventory be based on the normal capacity of the production facilities.

We typically plan our production and inventory levels based on internal forecasts of customer demand, which are highly unpredictable and can fluctuate substantially. The value of our inventories is dependent on our estimate of future demand as it relates to historical sales. If our projected demand is overestimated, we may be required to reduce the valuation of our inventories below cost. We regularly review inventory quantities on hand and record an estimated provision for excess inventory based primarily on our historical sales and expectations for future use. We also recognize a reserve based on known technological obsolescence, when appropriate. Actual demand and market conditions may be different from those projected by our management. This could have a material effect on our operating results and financial position. If we were to make different judgments or utilize different estimates, the amount and timing of our write-down of inventories could be materially different. For example, during the fourth quarter of fiscal 2009, we examined our inventory and as a consequence of the dramatic retrenchment in some of our markets, certain of our inventory that normally would not be considered excess was considered as such. Therefore, we booked additional charges of about $14.9 million to recognize this exposure.

Excess inventory frequently remains saleable. When excess inventory is sold, it yields a gross profit margin of up to 100%. Sales of excess inventory have the effect of increasing the gross profit margin beyond that which would otherwise occur, because of previous write-downs. Once we have written down inventory below cost, we do not write it up when it is subsequently utilized, sold or scrapped. We do not physically segregate excess inventory nor do we assign unique tracking numbers to it in our accounting systems. Consequently, we cannot isolate the sales prices of excess inventory from the sales prices of non-excess inventory. Therefore, we are unable to report the amount of gross profit resulting from the sale of excess inventory or quantify the favorable impact of such gross profit on our gross profit margin.

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The following table provides information on our excess and obsolete inventory reserve charged against inventory at cost (in thousands):

	(unaudited)
Balance at March 31, 2014	$	24,304
Utilization or sale		(282	)
Scrap		(1,401	)
Additional accrual		1,102
Foreign currency translation adjustments		(20	)
Balance at June 30, 2014		23,703
Utilization or sale		(622	)
Scrap		(352	)
Additional accrual		1,514
Foreign currency translation adjustments		(504	)
Balance at September 30, 2014	$	23,739

The practical efficiencies of wafer fabrication require the manufacture of semiconductor wafers in minimum lot sizes. Often, when manufactured, we do not know whether or when all the semiconductors resulting from a lot of wafers will sell. With more than 10,000 different part numbers for semiconductors, excess inventory resulting from the manufacture of some of those semiconductors will be continual and ordinary. Because the cost of storage is minimal when compared to potential value and because our products do not quickly become obsolete, we expect to hold excess inventory for potential future sale. Consequently, we have no set time line for the utilization, sale or scrapping of excess inventory.

In addition, our inventory is also being written down to the lower of cost or market or net realizable value. We review our inventory listing on a quarterly basis for an indication of losses being sustained for costs that exceed selling prices less direct costs to sell. When it is evident that our selling price is lower than current cost, inventory is marked down accordingly. At September 30, 2014, our lower of cost or market reserve was $402,000.

Furthermore, we perform an annual inventory count and periodic cycle counts for specific parts that have a high turnover. We also periodically identify any inventory that is no longer usable and write it off.

Valuation of Goodwill and Intangible Assets. Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired. The costs of acquired intangible assets are recorded at fair value at acquisition. Intangible assets with finite lives are amortized using the straight-line method or accelerated method over their estimated useful lives and evaluated for impairment in accordance with the authoritative guidance provided by FASB.

Goodwill and intangible assets with indefinite lives are carried at fair value and reviewed at least annually for an impairment charge during the quarter ending March 31, or more frequently if events and circumstances indicate that the asset might be impaired, in accordance with the authoritative guidance provided by FASB. We first assess qualitative factors to determine whether it is necessary to perform the two-step fair value-based impairment test described below. If we believe that, as a result of its qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required.

Under the quantitative approach, there are two steps in the determination of the impairment of goodwill. The first step compares the carrying amount of the net assets to the fair value of the reporting unit. The second step, if necessary, recognizes an impairment loss to the extent the carrying value of the reporting unit’s net assets exceed the implied fair value of goodwill. An impairment loss would be recognized to the extent that the carrying amount exceeds the fair value of the reporting unit.

We use the income approach, based on estimated future cash flows, to perform the quantitative goodwill impairment test when and if required. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, discount rates and future economic and market conditions. Our estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. By their nature, these assumptions would not reflect unanticipated events and circumstances that may occur. Due to the significant unobservable inputs inherent in discounted cash flow methodologies, this method is classified as Level 3 in the fair value hierarchy.

We assess the recoverability of the finite-lived intangible assets by examining the occurrences of certain events or changes of circumstances that indicate that the carrying amounts may not be recoverable. After our initial assessment, if it is necessary, we perform the impairment test by determining whether the estimated undiscounted cash flows attributable to the assets in question are less than their carrying values. Impairment losses, if any, are measured as the amount by which the carrying values of the assets exceed their fair value and are recognized in operating results. If a useful life is determined to be shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life.

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See Note 8, “Goodwill and Intangible Assets” for a further discussion of the impairment analysis of goodwill and the related charges recorded.

Income tax. In preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating our actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within our unaudited condensed consolidated balance sheets. We then assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe that recovery is not likely, we establish a valuation allowance. A valuation allowance reduces our deferred tax assets to the amount that management estimates is more likely than not to be realized. In determining the amount of the valuation allowance, we consider income over recent years, estimated future taxable income, feasible tax planning strategies and other factors in each taxing jurisdiction in which we operate. If we determine that it is more likely than not that we will not realize all or a portion of our remaining deferred tax assets, then we will increase our valuation allowance with a charge to income tax expense. Conversely, if we determine that it is likely that we will ultimately be able to utilize all or a portion of the deferred tax assets for which a valuation allowance has been provided, then the related portion of the valuation allowance will reduce income tax expense. Significant management judgment is required in determining our provision for income taxes and potential tax exposures, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets. In the event that actual results differ from these estimates or we adjust these estimates in future periods, we may need to establish a valuation allowance, which could materially impact our financial position and results of operations. Our ability to utilize our deferred tax assets and the need for a related valuation allowance are monitored on an ongoing basis.

Furthermore, computation of our tax liabilities involves examining uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain tax positions based on the two-step process as prescribed by the authoritative guidance provided by FASB. The first step is to evaluate the tax position to determine whether there is sufficient available evidence to indicate if it is more likely than not that the position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step requires us to measure and determine the approximate amount of the tax benefit at the largest amount that is more than 50% likely of being realized upon ultimate settlement with the tax authorities. It is inherently difficult and requires significant judgment to estimate such amounts, as this requires us to determine the probability of various possible outcomes. We reexamine these uncertain tax positions on a quarterly basis. This reassessment is based on various factors during the period including, but not limited to, changes in worldwide tax laws and treaties, changes in facts or circumstances, effectively settled issues under audit and any new audit activity. A change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements, including the expected dates of adoption and estimated effects, if any, on our unaudited condensed consolidated financial statements, see Note 2, “Recent Accounting Pronouncements and Accounting Changes” in the Notes to Unaudited Condensed Consolidated Financial Statements of this Form 10-Q.

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Results of Operations — Three and Six Months Ended September 30, 2014 and 2013

The following table sets forth selected consolidated statements of operations data for the fiscal periods indicated and the percentage change in such data from period to period. These historical operating results may not be indicative of the results for any future period.

	Three Months Ended September 30,							Six Months Ended September 30,
	2014		% change			2013		2014		% change			2013
	(unaudited)							(unaudited)
	(000)					(000)		(000)					(000)
Net revenues	$	86,435		0.6		$	85,901	$	174,515		11.1		$	157,087
Cost of goods sold		60,265		3.9			58,000		123,345		14.2			108,049
Gross profit	$	26,170		(6.2	)	$	27,901	$	51,170		4.3		$	49,038
Operating expenses:
Research, development and engineering	$	6,948		(6.8	)	$	7,453	$	14,198		(6.2	)	$	15,140
Selling, general and administrative		10,713		1.2			10,583		21,477		4.1			20,626
Amortization of acquired intangible assets		1,419		(58.6	)		3,425		3,126		(14.8	)		3,671
Total operating expenses	$	19,080		(11.1	)	$	21,461	$	38,801		(1.6	)	$	39,437

The following table sets forth selected statements of operations data as a percentage of net revenues for the fiscal periods indicated. These historical operating results may not be indicative of the results for any future period.

	% of Net Revenues Three Months Ended September 30,						% of Net Revenues Six Months Ended September 30,
	2014			2013			2014			2013
	(unaudited)						(unaudited)
Net revenues		100.0			100.0			100.0			100.0
Cost of goods sold		69.7			67.5			70.7			68.8
Gross profit		30.3			32.5			29.3			31.2
Operating expenses:
Research, development and engineering		8.0			8.7			8.1			9.6
Selling, general and administrative		12.5			12.3			12.3			13.2
Amortization of acquired intangible assets		1.6			4.0			1.8			2.3
Total operating expenses		22.1			25.0			22.2			25.1
Operating income		8.2			7.5			7.1			6.1
Other income (expense), net		2.2			(2.0	)		0.9			(1.2	)
Income before income tax		10.4			5.5			8.0			4.9
Provision for income tax		(3.7	)		(1.6	)		(2.7	)		(1.5	)
Net income		6.7			3.9			5.3			3.4

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Net Revenues

The following table sets forth the revenues for each of our product groups for the fiscal periods indicated:

Revenues (1)	Three Months Ended September 30,							Six Months Ended September 30,
	2014		% change			2013		2014		% change		2013
	(unaudited)							(unaudited)
	(000)					(000)		(000)				(000)
Power semiconductors	$	55,780		(6.6	)	$	59,720	$	113,748		2.1	$	111,386
Integrated circuits		23,438		11.9			20,945		47,320		36.8		34,600
Systems and RF power semiconductors		7,217		37.8			5,236		13,447		21.1		11,101
Total	$	86,435		0.6		$	85,901	$	174,515		11.1	$	157,087

(1) Revenue information includes intellectual property and consulting revenues that are not included in average selling prices.

The following tables set forth the average selling prices, or ASPs, and units for the fiscal periods indicated:

Average Selling Prices	Three Months Ended September 30,							Six Months Ended September 30,
	2014		% change			2013		2014		% change			2013
	(unaudited)							(unaudited)
Power semiconductors	$	2.15		9.1		$	1.97	$	2.15		16.2		$	1.85
Integrated circuits	$	0.47		(7.8	)	$	0.51	$	0.47		(20.3	)	$	0.59
Systems and RF power semiconductors	$	37.59		51.5		$	24.82	$	31.49		13.2		$	27.82
Units	Three Months Ended September 30,							Six Months Ended September 30,
	2014		% change			2013		2014		% change			2013
	(unaudited)							(unaudited)
	(000)					(000)		(000)					(000)
Power semiconductors		25,930		(14.5	)		30,333		52,835		(12.1	)		60,111
Integrated circuits		49,157		37.5			35,762		98,534		86.8			52,743
Systems and RF power semiconductors		192		(9.0	)		211		427		7.0			399
Total		75,279		13.5			66,306		151,796		34.0			113,253

The following table sets forth the net revenue by geographic region for the fiscal periods indicated:

	Three Months Ended September 30,								Six Months Ended September 30,
	2014				2013				2014				2013
	Net Revenue		% of Net Revenue		Net Revenue		% of Net Revenue		Net Revenue		% of Net Revenue		Net Revenue		% of Net Revenue
	(unaudited)								(unaudited)
	(000)				(000)				(000)				(000)
Europe and Middle East	$	26,930		31.1	$	26,580		30.9	$	53,155		30.5	$	50,499		32.1
Asia Pacific		35,418		41.0		34,069		39.7		72,007		41.3		57,107		36.4
Rest of world		2,585		3.0		2,726		3.2		5,347		3.0		5,397		3.4
International revenues	$	64,933		75.1	$	63,375		73.8	$	130,509		74.8	$	113,003		71.9
USA		21,502		24.9		22,526		26.2		44,006		25.2		44,084		28.1
Total revenues	$	86,435		100.0	$	85,901		100.0	$	174,515		100.0	$	157,087		100.0

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The 0.6% increase in net revenues in the three months ended September 30, 2014 as compared to the three months ended September 30, 2013 reflected an increase of $2.5 million, or 11.9%, in the sale of ICs and an increase of $2.0 million, or 37.8%, in the sale of systems and RF power semiconductors, offset by a decrease of $3.9 million, or 6.6%, in the sale of power semiconductors. The decrease in power semiconductors was principally the result of a $2.5 million decrease in the sale of bipolar products, primarily in the industrial and commercial market, and a $1.6 million decrease in MOS products, principally in the medical market and the industrial and commercial market, offset by slight increases in other power products. The increase in revenues from the sale of ICs was driven by our Acquired MCU Business, which sells primarily to the consumer products market, and by increased sales of solid state relays, primarily to the telecommunications market, partially offset by reduced sales of ASICs. The revenues from the sale of systems and RF power semiconductors increased mainly due to growth in the sale of subassemblies to the industrial and commercial market.

The 11.1% increase in net revenues in the six months ended September 30, 2014 as compared to the six months ended September 30, 2013 reflected an increase of $2.4 million, or 2.1%, in the sale of power semiconductors, an increase of $12.7 million, or 36.8%, in the sale of ICs and an increase of $2.3 million, or 21.1%, in the sale of systems and RF power semiconductors. The increase in power semiconductors included a $3.1 million increase in the sale of MOS products, principally to the medical market and the industrial and commercial market, offset by a $513,000 decrease in the sale of bipolar products, primarily in the industrial and commercial market. The increase in revenues from the sale of ICs was primarily from the Acquired MCU Business and increased sales of solid state relays, primarily to the telecommunications market, offset by decreased sales of ASICs. The revenues from the sale of systems and RF power semiconductors increased primarily due to a $2.7 million increase in the sale of subassemblies to the industrial and commercial market.

For the three and six months ended September 30, 2014 as compared to the comparable periods of the previous fiscal year, the increases in ASPs in power semiconductors were due to shifts in product mix toward higher-priced products. The increases in ASPs in systems and RF power semiconductors were due to changes in product mix among subassemblies. The reductions in the ASPs of ICs were mainly due to shifts in our product mix among microcontrollers.

For the three and six months ended September 30, 2014 as compared to the three and six months ended September 30, 2013, the decreases in unit shipments of our power semiconductors were broad-based across product lines. The increase in IC units was principally driven by the addition of the Acquired MCU Business. In systems and RF power semiconductors, for the three months ended September 30, 2014 as compared to the three months ended September 30, 2013, the unit reduction was caused by lower shipments of RF power devices; for the six months ended September 30, 2014 as compared to the six months ended September 30, 2013, the unit growth was the result of higher shipments of RF power semiconductors.

Intellectual property revenues, consisting of sales, licensing fees and royalties, for the three and six months ended September 30, 2014 were $306,000 and $674,000, respectively, as compared to $632,000 and $1.2 million for the three and six months ended September 30, 2013.

For the three months ended September 30, 2014 as compared to the three months ended September 30, 2013, we experienced decreased sales to all of our major application markets except the consumer market. For the six months ended September 30, 2014 as compared to the six months ended September 30, 2013, sales to the consumer market and industrial and commercial market increased while sales to the medical and telecom markets declined.

For the three and six months ended September 30, 2014 as compared to the three and six months ended September 30, 2013, our sales to Europe and the Middle East and the Asia Pacific Area increased and our sales to the United States decreased.

For the three and six months ended September 30, 2014, a distributor accounted for 11.4% and 10.9% of our net revenues, respectively. For the six months ended September 30, 2013, this distributor accounted for 10.6% of our net revenues. For the three and six months ended September 30, 2013, another distributor accounted for 12.1% and 12.5% of our net revenues, respectively.

Our net revenues were reduced by allowances for sales returns, stock rotations and ship and debit. See “Critical Accounting Policies and Significant Management Estimates” elsewhere in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Gross Profit

Gross profit margin decreased to 30.3% in the three months ended September 30, 2014 from 32.5% in the three months ended September 30, 2013. Gross profit margin fell to 29.3% in the six months ended September 30, 2014 from 31.2% in the six months ended September 30, 2013. For both the three and six months ended September 30, 2014 as compared to comparable periods of the prior fiscal year, the gross profit margins were negatively affected by lower utilization of certain facilities, offset by favorable changes in product mix towards higher-margin products. Further, during the prior year periods, the gross profit margin was positively affected by the impact of transitioning the Acquired MCU Business.

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Our gross profit and gross profit margin were positively affected by the sale of excess inventory, which had previously been written down. See “Critical Accounting Policies and Significant Management Estimates—Inventories” elsewhere in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Research, Development and Engineering

R&D expenses typically consist of internal engineering efforts for product design and development. As a percentage of net revenues, our R&D expenses for the three and six months ended September 30, 2014 were 8.0% and 8.1%, respectively, as compared to 8.7% and 9.6% for the three and six months ended September 30, 2013. For the three and six months ended September 30, 2014 as compared to the same periods of the prior year, the decreases in the percentages related to higher revenues as well as lower development expenses. Expressed in dollars, R&D expenses decreased primarily because of the completion of the development phase of a new manufacturing process.

Selling, General and Administrative

As a percentage of net revenues, our SG&A expenses for the three and six months ended September 30, 2014 were 12.5% and 12.3% as compared to 12.3% and 13.2% for the three and six months ended September 30, 2013. Expressed in dollars, SG&A expenses increased for the three and six months ended September 30, 2014 as compared to the same periods in the prior fiscal year due to increased selling expenses corresponding to increased revenues, partially offset by lower professional and consulting expenses.

Amortization of Acquired Intangible Assets

During the quarter ended June 30, 2013, we completed the acquisition of the Acquired MCU Business. As a result, we recorded $24.0 million of intangible assets. We also recorded certain intangible assets during fiscal 2010 in connection with the acquisition of Zilog. For the three and six months ended September 30, 2014, we recorded amortization expenses on acquired intangible assets of $1.4 million and $3.1 million, respectively. For the three and six months ended September 30, 2013, we recorded amortization expenses on acquired intangible assets of $3.4 million and $3.7 million, respectively.

Interest Expense

During the three and six months ended September 30, 2014, our interest expenses were $322,000 and $732,000, respectively, as compared to $480,000 and $693,000 for the three and six months ended September 30, 2013. The interest expenses during both fiscal years included the accrual of interest on the installment payments for the Acquired MCU Business.

Other Income (Expense), net

In the quarter ended September 30, 2014, other income, net was $2.2 million as compared to other expense, net of $1.3 million in the quarter ended September 30, 2013. The other income, net in the three months ended September 30, 2014 principally consisted of $2.1 million in gains associated with changes in exchange rates for foreign currency transactions. The other expense, net in the three months ended September 30, 2013 consisted principally of $1.3 million in losses associated with changes in exchange rates for foreign currency transactions.

For the six months ended September 30, 2014, other income, net was $2.4 million, as compared to other expense, net of $1.3 million in the six months ended September 30, 2013. For the six months ended September 30, 2014, other income, net consisted principally of $2.4 million in gains associated with changes in exchange rates for foreign currency transactions. For the six months ended September 30, 2013, other expense, net included losses associated with changes in exchange rates for foreign currency transactions of $1.5 million.

Provision for Income Tax

For the three and six months ended September 30, 2014, we recorded income tax provisions of $3.2 million and $4.8 million, reflecting effective tax rates of 36.0% and 33.9%, respectively. For the three and six months ended September 30, 2013, we recorded income tax provisions of $1.4 million and $2.3 million, reflecting effective tax rates of 28.7% and 29.9%, respectively. For the three and six months ended September 30, 2014, the effective tax rates were affected by changes in estimates of annual income in domestic and foreign jurisdictions. For the three and six months ended September 30, 2013, the effective tax rates were affected by changes in estimates of annual income in domestic and foreign jurisdictions and certain discrete items.

27

Liquidity and Capital Resources

At September 30, 2014, cash and cash equivalents were $124.9 million as compared to $98.4 million at March 31, 2014.

Our cash provided by operating activities for the six months ended September 30, 2014 was $22.7 million, an increase of $11.4 million as compared to the $11.3 million of cash provided by operating activities in the comparable period of the prior year. The change in our operating cash flow was primarily due to an increase of $7.6 million in net changes in operating assets and liabilities and an increase of $3.8 million in net income and adjustments to reconcile net income.

The increase in net income and total adjustments to reconcile net income was principally caused by the growth in net revenues. The changes in operating assets and liabilities for the six months ended September 30, 2014 compared to the six months ended September 30, 2013 were primarily caused by the following: accounts receivable changed in large part because of differences in the timing of recognition of revenues, accounts payable decreased due to the timing of payments; prepaid expenses and other current assets decreased due to the timing of a tax refund; and inventory purchases increased to meet our production plans.

Our net cash used in investing activities for the six months ended September 30, 2014 was $7.2 million, as compared to net cash used in investing activities of $23.6 million during the six months ended September 30, 2013. During the six months ended September 30, 2014, our uses of cash for investing activities principally reflected capital expenditures of $4.6 million and an acquisition of $2.3 million. During the six months ended September 30, 2013, we made a payment of $20.0 million for the Acquired MCU Business and we spent $3.9 million on the purchase of property and equipment.

For the six months ended September 30, 2014, net cash provided by financing activities was $12.4 million as compared to net cash used in financing activities of $1.8 million in the six months ended September 30, 2013. During the six months ended September 30, 2014, we drew an additional $30.0 million from the line of credit with BOTW and we paid the first $15.0 million deferred payment for the Acquired MCU Business. In addition, we used $2.0 million for payments of cash dividends to stockholders and $2.0 million for principal repayments on capital lease and loan obligations, offset by proceeds from employee equity plans of $1.4 million. During the six months ended September 30, 2013, we used $1.9 million for dividends, $1.7 million for principal repayments on capital lease and loan obligations and $433,000 for the purchase of treasury stock, offset by proceeds from employee equity plans of $2.2 million.

At September 30, 2014, capital lease obligations, loans payable and the remaining installment payment totalled $67.8 million. This represented 54.3% of our cash and cash equivalents and 25.0% of our stockholders’ equity.

We are obligated on a €3.8 million, or $4.9 million, loan. The loan has a term ending in June 2020, and bears a variable interest rate, dependent upon the current Euribor rate and the ratio of indebtedness to cash flow for the German subsidiary. Each fiscal quarter a principal payment of €167,000, or about $212,000, and a payment of accrued interest are required. Financial covenants for a ratio of indebtedness to cash flow, a ratio of equity to total assets and a minimum stockholders’ equity for the German subsidiary must be satisfied for the loan to remain in good standing. At September 30, 2014, we complied with all of these financial covenants. The loan may be prepaid in whole or in part at the end of a fiscal quarter without penalty. The loan is collateralized by a security interest in the facility in Lampertheim, Germany.

On December 6, 2013, we entered into an Amended and Restated Credit Agreement with BOTW for a revolving line of credit of $50.0 million. All amounts owed under the credit agreement are due and payable on November 30, 2015. Borrowings may be repaid and re-borrowed during the term of the credit agreement. The obligations are guaranteed by two of our subsidiaries. At September 30, 2014, the outstanding principal under the credit agreement was $45.0 million. The credit agreement is subject to a set of financial covenants, including minimum total net worth, the ratio of cash, cash equivalents and accounts receivable to current liabilities, profitability, a leverage ratio and a minimum amount of U.S. domestic cash on hand. At September 30, 2014, we complied with all of these financial covenants. See Note 9, “Borrowing and Deferred Payment Arrangements” in the Notes to Unaudited Condensed Consolidated Financial Statements of this Form 10-Q for further information regarding the credit agreement. The credit agreement also includes a $3.0 million letter of credit subfacility. See Note 16, “Commitments and Contingencies” and Note 9, “Borrowing and Deferred Payment Arrangements” in the Notes to Unaudited Condensed Consolidated Financial Statements of this Form 10-Q for further information regarding the terms of our credit arrangements.

During the six months ended September 30, 2014, we declared $2.0 million in cash dividends, consisting of a dividend of $0.03 per share for the quarter ended June 30, 2014 and a dividend of $0.035 per share for the quarter ended September 30, 2014. The quarterly dividend is at the discretion of the Board of Directors.

On June 27, 2013, we purchased the Acquired MCU Business. The aggregate purchase price for the transferred assets was $50.0 million. The closing payment was $20.0 million and we were obligated to pay $30.0 million in two installment payments of $15.0 million each. The first installment was paid on June 26, 2014 and the second installment is due on December 31, 2014. The remaining installment payment bears simple interest at a variable annual rate equal to six-month LIBOR plus a 3 percentage point margin. We expect to fund the remaining installment payment through cash on hand and future cash flow generated from operations. See Note 9, “Borrowing and Deferred Payment Arrangements” in the Notes to Unaudited Condensed Consolidated Financial Statements of this Form 10-Q for further information regarding the terms of the installment payments.

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We assumed loans of approximately $723,000 related to an acquisition completed during the quarter ended June 30, 2014. The assumed borrowings were non-interest loans from government agencies to support the research and development activities with maturity dates varying from fiscal 2017 to fiscal 2021, other than a loan of $99,000 that we paid in full during the quarter ended September 30, 2014.

Additionally, we maintain three defined benefit pension plans: one in the United Kingdom, one in Germany and one in the Philippines. Benefits are based on years of service and the employees’ compensation. We either deposit funds for these plans with financial institutions, consistent with the requirements of local law, or accrue for the unfunded portion of the obligations. The United Kingdom and German plans have been curtailed. As such, the plans are closed to new entrants and no credit is provided for additional periods of service. The total pension liability accrued for the three plans at September 30, 2014 was $13.9 million.

We believe that our cash and cash equivalents, together with cash generated from operations, will be sufficient to meet our anticipated cash requirements for the next 12 months. Our liquidity could be negatively affected by a decline in demand for our products, increases in the cost of materials or labor, investments in new product development or one or more acquisitions. From time to time, we use derivative contracts in the normal course of business to manage our foreign currency exchange and interest rate risks. We did not have any significant open derivative contracts as of September 30, 2014. There can be no assurance that additional debt or equity financing will be available when required or, if available, can be secured on terms satisfactory to us.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our market risk has not changed materially from the market risk disclosed in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of our Annual Report on Form 10-K for the fiscal year ended March  31, 2014.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Based on their evaluation as of September 30, 2014, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) were effective to ensure that the information required to be disclosed by us in this Quarterly Report on Form 10-Q was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and regulations. Furthermore, these controls and procedures were also effective to ensure that information required to be disclosed by us in this Quarterly Report on Form 10-Q was accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our procedures or our internal controls will prevent or detect all errors and all fraud. An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of our controls can provide absolute assurance that all control issues, errors and instances of fraud, if any, have been detected.

Changes in Internal Controls over Financial Reporting

During the quarter ended September 30, 2014, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We currently are involved in a variety of legal matters that arise in the normal course of business. Based on information currently available, management does not believe that the ultimate resolution of these matters will have a material adverse effect on our financial condition, results of operations and cash flows. Were an unfavorable ruling to occur, there exists the possibility of a material adverse impact on the results of operations of the period in which the ruling occurs.

ITEM 1A. RISK FACTORS

In addition to the other information in this Quarterly Report on Form 10-Q, the following risk factors should be considered carefully in evaluating our business and us. Additional risks not presently known to us or that we currently believe are not serious may also impair our business and its financial condition.

Our operating results fluctuate significantly because of a number of factors, many of which are beyond our control.

Given the nature of the markets in which we participate, as well as macroeconomic uncertainties, we cannot reliably predict future revenues and profitability and unexpected changes may cause us to adjust our operations. Large portions of our costs are fixed, due in part to our significant sales, research and development and manufacturing costs. Thus, small declines in revenues could seriously negatively affect our operating results in any given quarter. Our operating results may fluctuate significantly from quarter-to-quarter and year-to-year. For example, from fiscal 2005 to fiscal 2006 and from fiscal 2008 to fiscal 2009, net income in one year shifted to net loss in the next year. Some of the factors that may affect our quarterly and annual results are:

• changes in business and economic conditions, including a downturn in demand or decrease in the rate of growth in demand, whether in the global economy, a regional economy or the semiconductor industry;

• changes in consumer and business confidence caused by changes in market conditions, potentially including changes in the credit markets, or changes in currency exchange rates, expectations for inflation or energy prices;

• the reduction, rescheduling or cancellation of orders by customers;

• fluctuations in timing and amount of customer requests for product shipments;

• changes in the mix of products that our customers purchase;

• changes in the level of customers’ component inventories;

• loss of key customers;

• the availability of production capacity, whether internally or from external suppliers;

• the cyclical nature of the semiconductor industry;

• competitive pressures on selling prices;

• strategic actions taken by our competitors;

• market acceptance of our products and the products of our customers;

• fluctuations in our manufacturing yields and significant yield losses;

• difficulties in forecasting demand for our products and the planning and managing of inventory levels;

• the availability of raw materials, supplies and manufacturing services from third parties;

• the amount and timing of investments in research and development;

• damage awards or injunctions as the result of litigation;

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• changes in our product distribution channels and the timeliness of receipt of distributor resale information;

• the impact of vacation schedules and holidays, largely during the second and third quarters of our fiscal year; and

• the amount and timing of costs associated with product returns.

As a result of these factors, many of which are difficult to control or predict, as well as the other risk factors discussed in this Quarterly Report on Form 10-Q, we may experience materially adverse fluctuations in our future operating results on a quarterly or annual basis. Changes in demand for our products and in our customers’ product needs could have a variety of negative effects on our competitive position and our financial results, and, in certain cases, may reduce our revenues, increase our costs, lower our gross margin percentage or require us to recognize impairments of our assets. If product demand declines, our manufacturing or assembly and test capacity could be underutilized and we may be required to record an impairment on our long-lived assets, including facilities and equipment as well as intangible assets and goodwill, which would increase our expenses. Factory planning decisions may also shorten the useful lives of long-lived assets, including facilities and equipment, and cause us to accelerate depreciation. In addition, if product demand declines or we fail to forecast demand accurately, we could be required to write off inventory or record underutilization charges, which would have a negative impact on our gross margin.

Our efforts to increase our prices for some products will result in reduced revenues from some customers and may result in lower gross profits and in restructuring charges.

We have informed a number of our OEM customers that we are increasing prices to levels that will provide us with more acceptable gross margins. Increased pricing has led to the cancellation or reduction of existing orders and will lead to a reduction in new orders and, therefore, to reduced revenues from these customers. If the business remaining with these customers after the price increases results in lower gross profits, our results of operations could be materially adversely affected. If the reduced or cancelled orders from these customers cannot be substantially replaced, we may undertake a reduction in force, close a production line or take other operational steps, any of which could result in restructuring charges that would materially adversely affect our results of operations.

We may not be successful in our acquisitions.

In fiscal 2014, we completed the acquisition of an 8-bit microcontroller product line. Further, we have in the past made, and may in the future make, acquisitions of other technologies and companies. These acquisitions involve numerous risks, including:

• failure to retain key personnel of the acquired business;

• diversion of management’s attention during the acquisition process;

• disruption of our ongoing business;

• the potential strain on our financial and managerial controls and reporting systems and procedures;

• unanticipated expenses and potential delays related to integration of an acquired business;

• the risk that we will be unable to develop or exploit acquired technologies;

• the engineering risks inherent in transferring products from one wafer fabrication facility to another;

• failure to successfully integrate the operations of an acquired business with our own;

• the challenges in achieving strategic objectives, cost savings and other benefits from acquisitions;

• the risk that our markets do not evolve as anticipated and that the technologies acquired do not prove to be those needed to be successful in those markets;

• the risks of entering new markets in which we have limited experience;

• difficulties in expanding our information technology systems or integrating disparate information technology systems to accommodate the acquired businesses;

• the challenges inherent in managing an increased number of employees and facilities and the need to implement appropriate policies, benefits and compliance programs;

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• customer dissatisfaction or performance problems with an acquired company’s products or personnel or with altered sales terms or a changed distribution channel;

• adverse effects on our relationships with suppliers;

• the reduction in financial stability associated with the incurrence of debt or the use of a substantial portion of our available cash;

• the costs associated with acquisitions, including amortization expenses related to intangible assets, and the integration of acquired operations; and

• assumption of known or unknown liabilities or other unanticipated events or circumstances.

We cannot assure that we will be able to successfully acquire other businesses or product lines or integrate them into our operations without substantial expense, delay in implementation or other operational or financial problems.

As a result of an acquisition, our financial results may differ from the investment community’s expectations in a given quarter. Further, if one or more of the foregoing risks materialize or market conditions or other factors lead us to change our strategic direction, we may not realize the expected value from such transactions. If we do not realize the expected benefits or synergies of such transactions, our consolidated financial position, results of operations, cash flows or stock price could be negatively impacted.

Our backlog may not result in future revenues.

Customer orders typically can be cancelled or rescheduled by the customer without penalty to the customer. Cancellations or reschedulings are common in periods of decreasing demand. Further, in periods of increasing demand, particularly when production is allocated or delivery delayed, customers of semiconductor companies have on occasion placed orders without expectation of accepting delivery to increase their share of allocated product or in an effort to improve the timeliness of delivery. While we are attuned to the potential for such behavior and attempt to identify such orders, we could accept orders of this nature and subsequently experience order cancellation unexpectedly.

Our backlog at any particular date is not necessarily indicative of actual revenues for any succeeding period. A reduction of backlog during any particular period, or the failure of our backlog to result in future revenues, could harm our results of operations.

Fluctuations in the mix of products sold may adversely affect our financial results.

Changes in the mix and types of products sold may have a substantial impact on our revenues and gross profit margins. In addition, more recently introduced products tend to have higher associated costs because of initial overall development costs and higher start-up costs. Fluctuations in the mix and types of our products may also affect the extent to which we are able to recover our fixed costs and investments that are associated with a particular product or wafer foundry, and, as a result, can negatively impact our financial results.

Our international operations expose us to material risks.

For the fiscal year ended March 31, 2014, our net revenues by region were approximately 26.7% in the United States, approximately 29.4% in Europe and the Middle East, approximately 40.3% in the Asia Pacific region and approximately 3.6% in Canada and the rest of the world. We expect revenues from foreign markets to continue to represent a majority of total net revenues. We maintain significant business operations in Germany, the United Kingdom and the Philippines and work with subcontractors, suppliers and manufacturers in South Korea, Japan, the Philippines and elsewhere in Europe and the Asia Pacific region. Some of the risks inherent in doing business internationally are:

• foreign currency fluctuations, particularly in the Euro and the British pound;

• longer payment cycles;

• challenges in collecting accounts receivable;

• changes in the laws, regulations or policies of the countries in which we manufacture or sell our products;

• trade restrictions;

• cultural and language differences;

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• employment regulations;

• limited infrastructure in emerging markets;

• transportation delays;

• seasonal reduction in business activities;

• work stoppages;

• labor and union disputes;

• electrical outages;

• terrorist attack or war; and

• economic or political instability.

Our sales of products manufactured in our Lampertheim, Germany facility and our costs at that facility are primarily denominated in Euros, and sales of products manufactured in our Chippenham, U.K. facility and our costs at that facility are primarily denominated in British pounds. Fluctuations in the value of the Euro and the British pound against the U.S. dollar could have a significant adverse impact on our balance sheet and results of operations. We generally do not enter into foreign currency hedging transactions to control or minimize these risks. Reductions in the value of the Euro or British pound would reduce our revenues recognized in U.S. dollars, all other things being equal. Increases in the value of the Euro or the British pound could cause or increase losses associated with changes in exchange rates for foreign currency transactions. Fluctuations in currency exchange rates could cause our products to become more expensive to customers in a particular country, leading to a reduction in sales or profitability in that country. If we expand our international operations or change our pricing practices to denominate prices in other foreign currencies, we could be exposed to even greater risks of currency fluctuations.

Our financial performance is dependent on economic stability and credit availability in international markets. Actions by governments to address deficits or sovereign or bank debt issues, particularly in Europe, could adversely affect gross domestic product or currency exchange rates in countries where we operate, which in turn could adversely affect our financial results. If our customers or suppliers are unable to obtain the credit necessary to fund their operations, we could experience increased bad debts, reduced product orders and interruptions in supplier deliveries leading to delays or stoppages in our production. Alternatively, actions in emerging markets, such as China, to limit inflation or to address asset or other “bubbles” could also adversely affect gross domestic product or the growth thereof, and result in reduced product orders or increased bad debt expense for us.

In addition, the laws of certain foreign countries may not protect our products or intellectual property rights to the same extent as do U.S. laws. Therefore, the risk of piracy of our technology and products may be greater when we manufacture or sell our products in certain foreign countries.

The semiconductor industry is cyclical, and an industry downturn could adversely affect our operating results.

Business conditions in the semiconductor industry may rapidly change from periods of strong demand and insufficient production to periods of weakened demand and overcapacity. The industry in general is characterized by:

• changes in product mix in response to changes in demand;

• alternating periods of overcapacity and production shortages, including shortages of raw materials supplies and manufacturing services;

• cyclical demand for semiconductors;

• significant price erosion;

• variations in manufacturing costs and yields;

• rapid technological change and the introduction of new products; and

• significant expenditures for capital equipment and product development.

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These factors could harm our business and cause our operating results to suffer.

Our dependence on subcontractors to assemble and test our products subjects us to a number of risks, including an inadequate supply of products and higher materials costs.

We depend on subcontractors for the assembly and testing of our products. The substantial majority of our products are assembled by subcontractors located outside of the United States. Assembly subcontractors generally work on narrow margins and have limited capital. We have encountered assembly subcontractors who have ceased or reduced production because of financial problems. We engage assembly subcontractors who operate while in insolvency proceedings or whose financial stability is uncertain. The unexpected cessation of production or reduction in production by one or more of our assembly subcontractors could adversely affect our production, our customer relations, our revenues and our financial condition. Our reliance on these subcontractors also involves the following significant risks:

• reduced control over delivery schedules and quality;

• the potential lack of adequate capacity during periods of excess demand;

• difficulties selecting and integrating new subcontractors;

• limited or no warranties by subcontractors or other vendors on products supplied to us;

• potential increases in prices due to capacity shortages and other factors;

• potential misappropriation of our intellectual property; and

• economic or political instability in foreign countries.

These risks may lead to delayed product delivery or increased costs, which would harm our profitability and customer relationships.

Further, we use only a limited number of subcontractors to assemble most of our products. If one or more of these key subcontractors experience financial, operational, production or quality assurance difficulties, we could experience a significant reduction or interruption in supply. Although we believe alternative subcontractors are available, our operating results could temporarily suffer until we engage one or more of those alternative subcontractors. Moreover, in engaging alternative subcontractors in exigent circumstances, our production costs could increase markedly.

We depend on external foundries to manufacture many of our products.

Of our net revenues for our fiscal year ended March 31, 2014, 43.6% came from wafers manufactured for us by a number of external foundries. In particular, the wafers for all of our microcontrollers are fabricated at external foundries. Our dependence on external foundries may grow.

Our relationships with our external foundries do not guarantee prices, delivery or lead times or wafer or product quantities sufficient to satisfy current or expected demand. These foundries manufacture our products on a purchase order basis. We provide these foundries with rolling forecasts of our production requirements. However, the ability of each foundry to provide wafers to us is limited by the foundry’s available capacity. At any given time, these foundries could choose to prioritize capacity for their own use or other customers or reduce or eliminate deliveries to us. If growth in demand for our products occurs, our external foundries may be unable or unwilling to allocate additional capacity to our needs, thereby limiting our revenue growth. Accordingly, we cannot be certain that these foundries will allocate sufficient capacity to satisfy our requirements. In addition, we cannot be certain that we will continue to do business with these or other foundries on terms as favorable as our current terms. If we are not able to obtain foundry capacity as required, our relationships with our customers could be harmed, we could be unable to fulfill contractual requirements and our revenues could be reduced or our growth limited. Moreover, even if we are able to secure foundry capacity, we may be required, either contractually or as a practical business matter, to utilize all of that capacity or incur penalties or an adverse effect to the business relationship. The costs related to maintaining foundry capacity could be expensive and could harm our operating results. Other risks associated with our reliance on external foundries include:

• the lack of control over delivery schedules;

• the unavailability of, or delays in obtaining access to, key process technologies;

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• limited control over quality assurance, manufacturing yields and production costs; and

• potential misappropriation of our intellectual property.

Our requirements typically represent a small portion of the total production of the external foundries that manufacture our wafers and products. One or more of these external foundries may not continue to produce wafers for us or continue to advance the process design technologies on which the manufacturing of our products is based. If we are required to transition production from one foundry to another, we may make large last-time buys of product at the foundry that we are exiting, which could eventually result in substantial inventory write-offs if semiconductors are not sold or utilized. These circumstances could harm our ability to deliver our products or increase our costs.

Our gross margin is dependent on a number of factors, including our level of capacity utilization.

Semiconductor manufacturing requires significant capital investment, leading to high fixed costs, including depreciation expense. We are limited in our ability to reduce fixed costs quickly in response to any shortfall in revenues. If we are unable to utilize our manufacturing, assembly and testing facilities at a high level, the fixed costs associated with these facilities will not be fully absorbed, resulting in lower gross margins. Increased competition and other factors may lead to price erosion, lower revenues and lower gross margins for us in the future.

Our success depends on our ability to manufacture our products efficiently.

We manufacture our products in facilities that are owned and operated by us, as well as in external wafer foundries and subcontract assembly facilities. The fabrication of semiconductors is a highly complex and precise process, and a substantial percentage of wafers could be rejected or numerous dies on each wafer could be nonfunctional as a result of, among other factors:

• contaminants in the manufacturing environment;

• defects in the masks used to print circuits on a wafer;

• manufacturing equipment failure; or

• wafer breakage.

For these and other reasons, we could experience a decrease in manufacturing yields. Additionally, if we increase our manufacturing output, the additional demands placed on existing equipment and personnel or the addition of new equipment or personnel may lead to a decrease in manufacturing yields. As a result, we may not be able to cost-effectively expand our production capacity in a timely manner.

We order materials and commence production in advance of anticipated customer demand. Therefore, revenue shortfalls may also result in inventory write-downs.

We typically plan our production and inventory levels based on our own expectations for customer demand. Actual customer demand, however, can be highly unpredictable and can fluctuate significantly. In response to anticipated long lead times to obtain inventory and materials, we order materials and production in advance of customer demand. This advance ordering and production may result in excess inventory levels or unanticipated inventory write-downs if expected orders fail to materialize. For example, additional inventory write-downs occurred in the quarter ended March 31, 2009.

Semiconductors for inclusion in consumer products have shorter product life cycles.

We believe that consumer products are subject to shorter product life cycles, because of technological change, consumer preferences, trendiness and other factors, than other types of products sold by our customers. Shorter product life cycles result in more frequent design competitions for the inclusion of semiconductors in next generation consumer products, which may not result in design wins for us. Shorter product life cycles may lead to more frequent circumstances where sales of existing products are reduced or ended.

We estimate tax liabilities, the final determination of which is subject to review by domestic and international taxation authorities.

We are subject to income taxes and other taxes in both the United States and foreign jurisdictions in which we currently operate or have historically operated. We are also subject to review and audit by both domestic and foreign taxation authorities. The determination of our worldwide provision for income taxes and current and deferred tax assets and liabilities requires significant judgment and estimation. The provision for income taxes can be adversely affected by a variety of factors, including but not limited to changes in tax laws, regulations and accounting principles, including accounting for uncertain tax positions, or interpretation of those changes. Significant judgment is required to determine the recognition and measurement attributes prescribed in the authoritative guidance issued by FASB in connection with accounting for income taxes. Although we believe our tax estimates are reasonable, the ultimate tax outcome may materially differ from the tax amounts recorded in our consolidated financial statements and may materially affect our income tax provision, net income, goodwill or cash flows in the period or periods for which such determination is made.

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Uncertain global macroeconomic conditions could adversely affect our results of operations and financial condition.

Uncertain global macroeconomic conditions that affect the economy and the economic outlook of the United States, Europe and other parts of the world could adversely affect our customers and vendors, which could adversely affect our results of operations and financial condition. These uncertainties, including, among other things, sovereign and foreign bank debt levels, the inability of national or international political institutions to effectively resolve economic or budgetary crises or issues, consumer confidence, unemployment levels, interest rates, availability of capital, fuel and energy costs, tax rates, and the threat or outbreak of terrorism or public unrest, could adversely impact our customers and vendors, which could adversely affect us. Recessionary conditions and depressed levels of consumer and commercial spending may cause customers to reduce, modify, delay or cancel plans to purchase our products and may cause vendors to reduce their output or change their terms of sales. We generally sell products to customers with credit payment terms. If customers’ cash flow or operating or financial performance deteriorates, or if they are unable to make scheduled payments or obtain credit, they may not be able to pay, or may delay payment to us. Likewise, for similar reasons vendors may restrict credit or impose different payment terms. Any inability of current or potential customers to pay us for our products or any demands by vendors for different payment terms may adversely affect our results of operations and financial condition.

Approximately 28.9% of our total consolidated net sales for the fiscal year ended March 31, 2014 were derived from Europe. There have been continuing concerns and uncertainties about the state of the European economies and Europe’s political institutions. Continued difficult or declining economic conditions in Europe may adversely affect our operations in Europe by adversely affecting our European customers and vendors in the ways described above. Additionally, the inability of Europe’s political institutions to deal effectively with actual or perceived currency or budget crises could increase economic uncertainty in Europe, and globally, and may have an adverse effect on our customers’ cash flow or operating performance. Further, debt or budget crises in European countries may lead to reductions in government spending in certain countries or higher income or corporate taxes, which could depress spending overall. Our results of operations and financial condition could be adversely affected by any of these events.

Our debt agreements contain certain restrictions that may limit our ability to operate our business.

The agreements governing our debt contain, and any other future debt agreement we enter into may contain, restrictive covenants that limit our ability to operate our business, including, in each case subject to certain exceptions, restrictions on our ability to:

• incur additional indebtedness;

• grant liens;

• consolidate, merge or sell our assets, unless specified conditions are met;

• acquire other business organizations;

• make investments;

• redeem or repurchase our stock; and

• change the nature of our business.

In addition, our debt agreements contain financial covenants and additional affirmative and negative covenants. Our ability to comply with these covenants is dependent on our future performance, which will be subject to many factors, some of which are beyond our control, including prevailing economic conditions. If we are not able to comply with all of these covenants for any reason, some or all of our outstanding debt could become immediately due and payable and the incurrence of additional debt under the credit facilities provided by the debt agreements would not be allowed. If our cash is utilized to repay any outstanding debt, depending on the amount of debt outstanding, we could experience an immediate and significant reduction in working capital available to operate our business.

As a result of these covenants, our ability to respond to changes in business and economic conditions and to obtain additional financing, if needed, may be significantly restricted, and we may be prevented from engaging in transactions that might otherwise be beneficial to us, such as strategic acquisitions or joint ventures.

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Our intellectual property revenues are uncertain and unpredictable in timing and amount.

We are unable to discern a pattern in or otherwise predict the amount of any payments for the sale or licensing of intellectual property that we may receive. Consequently, we are unable to plan on the timing of intellectual property revenues and our results of operations may be adversely affected by a reduction in the amount of intellectual property revenues.

Our markets are subject to technological change and our success depends on our ability to develop and introduce new products.

The markets for our products are characterized by:

• changing technologies;

• changing customer needs;

• frequent new product introductions and enhancements;

• increased integration with other functions; and

• product obsolescence.

To develop new products for our target markets, we must develop, gain access to and use leading technologies in a cost-effective and timely manner and continue to expand our technical and design expertise. Failure to do so could cause us to lose our competitive position and seriously impact our future revenues.

Products or technologies developed by others may render our products or technologies obsolete or non-competitive. A fundamental shift in technologies in our product markets would have a material adverse effect on our competitive position within the industry.

Our revenues are dependent upon our products being designed into our customers’ products.

Many of our products are incorporated into customers’ products or systems at the design stage. The value of any design win largely depends upon the customer’s decision to manufacture the designed product in production quantities, the commercial success of the customer’s product and the extent to which the design of the customer’s electronic system also accommodates incorporation of components manufactured by our competitors. In addition, our customers could subsequently redesign their products or systems so that they no longer require our products. The development of the next generation of products by our customers generally results in new design competitions for semiconductors, which may not result in design wins for us, potentially leading to reduced revenues and profitability. We may not achieve design wins or our design wins may not result in future revenues.

We could be harmed by intellectual property litigation.

As a general matter, the semiconductor industry is characterized by substantial litigation regarding patent and other intellectual property rights. We have been sued for purported patent infringement and have been accused of infringing the intellectual property rights of third parties. We also have certain indemnification obligations to customers and suppliers with respect to the infringement of third party intellectual property rights by our products. We could incur substantial costs defending ourselves and our customers and suppliers from any such claim. Infringement claims or claims for indemnification, whether or not proven to be true, may divert the efforts and attention of our management and technical personnel from our core business operations and could otherwise harm our business. For example, in June 2000, we were sued for patent infringement by International Rectifier Corporation. The case was ultimately resolved in our favor, but not until October 2008. In the interim, the U.S. District Court entered multimillion dollar judgments against us on two different occasions, each of which was subsequently vacated.

In the event of an adverse outcome in any intellectual property litigation, we could be required to pay substantial damages, cease the development, manufacturing, use and sale of infringing products, discontinue the use of certain processes or obtain a license from the third party claiming infringement with royalty payment obligations upon us. An adverse outcome in an infringement action could materially and adversely affect our financial condition, results of operations and cash flows.

We may not be able to protect our intellectual property rights adequately.

Our ability to compete is affected by our ability to protect our intellectual property rights. We rely on a combination of patents, trademarks, copyrights, trade secrets, confidentiality procedures and non-disclosure and licensing arrangements to protect our intellectual property rights. Despite these efforts, we cannot be certain that the steps we take to protect our proprietary information will be adequate to prevent misappropriation of our technology, or that our competitors will not independently develop technology that is substantially similar or superior to our technology. More specifically, we cannot assure that our pending patent applications or any future applications will be approved, or that any issued patents will provide us with competitive advantages or will not be challenged by third parties. Nor can we assure that, if challenged, our patents will be found to be valid or enforceable, or that the patents of others will not have an adverse effect on our ability to do business. We may also become subject to or initiate interference proceedings in the U.S. Patent and Trademark Office, which can demand significant financial and management resources and could harm our financial results. Also, others may independently develop similar products or processes, duplicate our products or processes or design their products around any patents that may be issued to us.

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Because our products typically have lengthy sales cycles, we may experience substantial delays between incurring expenses related to research and development and the generation of revenues.

The time from initiation of design to volume production of new semiconductors often takes 18 months or longer. We first work with customers to achieve a design win, which may take nine months or longer. Our customers then complete the design, testing and evaluation process and begin to ramp up production, a period that may last an additional nine months or longer. As a result, a significant period of time may elapse between our research and development efforts and our realization of revenues, if any, from volume purchasing of our products by our customers.

The markets in which we participate are intensely competitive.

Many of our target markets are intensely competitive. Our ability to compete successfully in our target markets depends on the following factors:

• proper new product definition;

• product quality, reliability and performance;

• product features;

• price;

• timely delivery of products;

• technical support and service;

• design and introduction of new products;

• market acceptance of our products and those of our customers; and

• breadth of product line.

In addition, our competitors or customers may offer new products based on new technologies, industry standards or end-user or customer requirements, including products that have the potential to replace our products or provide lower cost or higher performance alternatives to our products. The introduction of new products by our competitors or customers could render our existing and future products obsolete or unmarketable.

Our primary power semiconductor competitors include Fairchild Semiconductor, Fuji, Hitachi, Infineon, International Rectifier, Microsemi, Mitsubishi, On Semiconductor, Powerex, Renesas Electronics, Semikron International, STMicroelectronics, Toshiba and Vishay Intertechnology. Our IC products compete principally with those of Atmel, Cypress Semiconductor, Freescale Semiconductor, Microchip, NEC, Renesas Electronics and Silicon Labs. Our RF power semiconductor competitors include Microsemi and RF Micro Devices. Many of our competitors have greater financial, technical, marketing and management resources than we have. Some of these competitors may be able to sell their products at prices at which it would be unprofitable for us to sell our products or benefit from established customer relationships that provide them with a competitive advantage. We cannot assure that we will be able to compete successfully in the future against existing or new competitors or that our operating results will not be adversely affected by increased price competition.

We rely on our distributors and sales representatives to sell many of our products.

Most of our products are sold to distributors or through sales representatives. Our distributors and sales representatives could reduce or discontinue sales of our products. They may not devote the resources necessary to sell our products in the volumes and within the time frames that we expect. In addition, we depend upon the continued viability and financial resources of these distributors and sales representatives, some of which are small organizations with limited working capital. These distributors and sales representatives, in turn, depend substantially on general economic conditions and conditions within the semiconductor industry. We believe that our success will continue to depend upon these distributors and sales representatives. Foreign distributors are typically granted longer payment terms, resulting in higher accounts receivable balances for a given level of sales than domestic distributors. Our risk of loss from the financial insolvency of distributors is, therefore, disproportionally weighted to foreign distributors. In connection with the acquisition of an 8-bit microcontroller business during fiscal 2014, we acquired a new set of distributor and sales representative relationships, some of which may be challenging to maintain at the same level of productivity. If any significant distributor or sales representative experiences financial difficulties, or otherwise becomes unable or unwilling to promote and sell our products, our business could be harmed. For example, All American Semiconductor, Inc., one of our former distributors, filed for bankruptcy in April 2007.

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Our future success depends on the continued service of management and key engineering personnel and our ability to identify, hire and retain additional personnel.

Our success depends upon our ability to attract and retain highly skilled technical, managerial, marketing and finance personnel, and, to a significant extent, upon the efforts and abilities of Nathan Zommer, Ph.D., our Chief Executive Officer, and other members of senior management. The loss of the services of one or more of our senior management or other key employees could adversely affect our business. We do not maintain key person life insurance on any of our officers, employees or consultants. There is intense competition for qualified employees in the semiconductor industry, particularly for highly skilled design, application and test engineers. We may not be able to continue to attract and retain engineers or other qualified personnel necessary for the development of our business or to replace engineers or other qualified individuals who could leave us at any time in the future. If we grow, we expect increased demands on our resources, and growth would likely require the addition of new management and engineering staff as well as the development of additional expertise by existing management. If we lose the services of or fail to recruit key engineers or other technical and management personnel, our business could be harmed.

Acquisitions, expansion, technological and administrative changes and software conversions and updates place a significant strain on our information systems.

Presently, because of our acquisitions, we are operating a number of different information systems that are not integrated. As a consequence, we use spreadsheets, which are prepared by individuals rather than automated systems, in our accounting. In our accounting, we perform many manual reconciliations and other manual steps, which result in a high risk of errors. Manual steps also increase the possibility of control deficiencies and material weaknesses.

If we do not adequately manage and evolve our financial reporting and managerial systems and processes, our ability to manage or grow our business may be harmed. Our ability to successfully implement our goals and comply with regulations, requires an effective planning and management system and process. We will need to continue to improve existing, and implement new, operational and financial systems, procedures and controls to manage our business effectively in the future.

In improving, consolidating, changing or updating our operational and financial systems, procedures and controls, we would expect to periodically implement new or different software and other systems that will affect our internal operations regionally or globally. The conversion process from one system to another is complex and could require, among other things, that data from the existing system be made compatible with the upgraded or different system.

In connection with any of the foregoing, we could experience errors, interruptions, delays, cessations of service and other inefficiencies, which could adversely affect our business. Any error, delay, disruption, interruption or cessation, including with respect to any new or different systems, software programs, procedures or controls, could harm our ability to forecast sales demand, manage our supply chain, achieve accuracy in the conversion of electronic data and record and report financial and management information on a timely and accurate basis. In addition, as we add or change functionality, transition or convert to different systems or programs or integrate additional data in connection with an acquisition, problems could arise that we have not foreseen. Such problems could adversely impact our ability to do the following in a timely manner: provide quotes; take customer orders; ship products; provide services and support to our customers; bill and track our customers; fulfill contractual obligations; and otherwise run our business. Failure to properly or adequately address these issues could result in the diversion of management’s attention and resources, adversely affect our ability to manage our business, increase expenses, or adversely affect our results of operations, cash flows, stock price or reputation.

System security risks, data protection breaches and cyber-attacks could disrupt our internal operations and any such disruption could reduce our expected revenues, increase our expenses, damage our reputation or adversely affect our stock price.

Computer programmers and hackers may be able to penetrate our security controls and misappropriate or compromise our confidential information or that of third parties, create system disruptions or cause shutdowns. Computer programmers and hackers also may be able to develop and deploy viruses, worms and other malicious software programs that attack our products or otherwise exploit any security vulnerabilities of our products. The costs to us to eliminate or alleviate cyber or other security problems, bugs, viruses, worms, malicious software programs and security vulnerabilities could be significant, and our efforts to address these problems may not be successful and could result in interruptions, delays, cessation of service and loss of existing or potential customers that may impede our sales, manufacturing, distribution or other critical functions.

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We manage and store proprietary information and sensitive or confidential data relating to our business and the businesses of third parties. Breaches of our security measures or the accidental loss, inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data about us or our partners or customers, including the potential loss or disclosure of such information or data as a result of fraud, trickery or other forms of deception, could expose us, our partners and customers to a risk of loss or misuse of this information, result in litigation and potential liability for us, damage our brand and reputation or otherwise harm our business. In addition, the cost and operational consequences of implementing further data protection measures could be significant. Delayed sales, lower margins or lost customers resulting from these disruptions could adversely affect our financial results, stock price and reputation.

New regulations related to conflict minerals will force us to incur additional expenses.

The Dodd-Frank Wall Street Reform and Consumer Protection Act contains provisions to improve transparency and accountability concerning the supply of minerals originating from the conflict zones of the Democratic Republic of Congo, or DRC, and adjoining countries. As a result, the SEC established annual disclosure and reporting requirements for those companies who use “conflict” minerals mined from the DRC and adjoining countries in their products. These requirements could affect the sourcing and availability of minerals used in the manufacture of our products. As a result, we cannot ensure that we will be able to obtain minerals at competitive prices. Moreover, there will be additional costs associated with complying with the extensive due diligence and audit procedures required by the SEC. In addition, we may face reputational challenges with our customers and other stakeholders as we have in the past and may in the future be unable to sufficiently verify the origins of all minerals used in our products. Finally, these rules bring implementation challenges. We may not successfully implement effective procedures to timely or adequately comply with these rules.

We depend on a limited number of suppliers for our substrates, most of whom we do not have long term agreements with.

We purchase the bulk of our silicon substrates from a limited number of vendors, most of whom we do not have long term supply agreements with. Any of these suppliers could reduce or terminate our supply of silicon substrates at any time. Our reliance on a limited number of suppliers involves several risks, including potential inability to obtain an adequate supply of silicon substrates and reduced control over the price, timely delivery, reliability and quality of the silicon substrates. We cannot assure that problems will not occur in the future with suppliers.

Increasing raw material prices could impact our profitability.

Our products use large amounts of silicon, metals and other materials. From time to time, we have experienced price increases for many of these items. If we are unable to pass price increases for raw materials onto our customers, our gross margins and profitability could be adversely affected.

We may not be able to increase production capacity to meet the present and future demand for our products.

The semiconductor industry has been characterized by periodic limitations on production capacity. These limitations may result in longer lead times for product delivery than desired by many of our customers. If we are unable to increase our production capacity to meet future demand, some of our customers may seek other sources of supply, our future growth may be limited or our results of operations may be adversely affected.

Costs related to product defects and errata may harm our results of operations and business.

Costs associated with unexpected product defects and errata (deviations from published specifications) due to, for example, unanticipated problems in our manufacturing processes, include the costs of:

• writing off the value of inventory of defective products;

• disposing of defective products;

• recalling defective products that have been shipped to customers;

• providing product replacements for, or modifications to, defective products; and/or

• defending against litigation related to defective products.

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These costs could be substantial and may, therefore, increase our expenses and lower our gross margin. In addition, our reputation with our customers or users of our products could be damaged as a result of such product defects and errata, and the demand for our products could be reduced. These factors could harm our financial results and the prospects for our business.

We face the risk of financial exposure to product liability claims alleging that the use of products that incorporate our semiconductors resulted in adverse effects.

Approximately 9.9% of our net revenues for the fiscal year ended March 31, 2014 were derived from sales of products used in medical devices, such as defibrillators. Product liability risks may exist even for those medical devices that have received regulatory approval for commercial sale. We cannot be sure that the insurance that we maintain against product liability will be adequate to cover our losses. Any defects in our semiconductors used in these devices, or in any other product, could result in significant product liability costs to us.

If our goodwill, acquired intangible assets or long-lived assets become impaired, we may be required to record a significant charge to earnings.

Under generally accepted accounting principles, goodwill is required to be tested for impairment at least annually and we review our acquired intangible assets and long-lived assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Factors that may be considered a change in circumstances indicating that the carrying value of our goodwill, acquired intangible assets or long-lived assets may not be recoverable include a decline in stock price and market capitalization, future cash flows and slower growth rates in our industry. In fiscal 2012, we recorded a goodwill impairment charge of $6.4 million, based on our estimates of the future operating results and discounted cash flows of the Zilog reporting unit.

Our results of operations could vary as a result of the methods, estimates, and judgments that we use in applying our accounting policies.

The methods, estimates, and judgments that we use in applying our accounting policies have a significant impact on our results of operations (see “Critical Accounting Policies and Significant Management Estimates” in Part I, Item 2 of this Form 10-Q). Such methods, estimates, and judgments are, by their nature, subject to substantial risks, uncertainties, and assumptions, and factors may arise over time that lead us to change our methods, estimates, and judgments. Changes in those methods, estimates, and judgments could significantly affect our results of operations.

We are exposed to various risks related to the regulatory environment.

We are subject to various risks related to new, different, inconsistent or even conflicting laws, rules and regulations that may be enacted by legislative bodies and/or regulatory agencies in the countries in which we operate; disagreements or disputes between national or regional regulatory agencies; and the interpretation and application of laws, rules and regulations. If we are found by a court or regulatory agency not to be in compliance with applicable laws, rules or regulations, our business, financial condition and results of operations could be materially and adversely affected.

In addition, approximately 9.9% of our net revenues for the fiscal year ended March 31, 2014 were derived from the sale of products included in medical devices that are subject to extensive regulation by numerous governmental authorities in the United States and internationally, including the U.S. Food and Drug Administration, or FDA. The FDA and certain foreign regulatory authorities impose numerous requirements for medical device manufacturers to meet, including adherence to Good Manufacturing Practices, or GMP, regulations and similar regulations in other countries, which include testing, control and documentation requirements. Ongoing compliance with GMP and other applicable regulatory requirements is monitored through periodic inspections by federal and state agencies, including the FDA, and by comparable agencies in other countries. Our failure to comply with applicable regulatory requirements could prevent our products from being included in approved medical devices or result in damages or other compensation payable to medical device manufacturers.

Our business could also be harmed by delays in receiving or the failure to receive required approvals or clearances, the loss of obtained approvals or clearances or the failure to comply with existing or future regulatory requirements.

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We invest in companies for strategic reasons and may not realize a return on our investments.

We make investments in companies to further our strategic objectives and support our key business initiatives. Such investments include investments in equity securities of public companies and investments in non-marketable equity securities of private companies, which range from early-stage companies that are often still defining their strategic direction to more mature companies whose products or technologies may directly support a product or initiative. The success of these companies is dependent on product development, market acceptance, operational efficiency, and other key business success factors. The private companies in which we invest may fail for operational reasons or because they may not be able to secure additional funding, obtain favorable investment terms for future financings or take advantage of liquidity events such as initial public offerings, mergers, and private sales. If any of these private companies fail, we could lose all or part of our investment in that company. If we determine that an other-than-temporary decline in the fair value exists for the equity securities of the public and private companies in which we invest, we write down the investment to its fair value and recognize the related write-down as an investment loss. Furthermore, when the strategic objectives of an investment have been achieved, or if the investment or business diverges from our strategic objectives, we may decide to dispose of the investment, even at a loss. Our investments in non-marketable equity securities of private companies are not liquid, and we may not be able to dispose of these investments on favorable terms or at all. The occurrence of any of these events could negatively affect our results of operations.

Our ability to access capital markets could be limited.

From time to time, we may need to access the capital markets to obtain long term financing. Although we believe that we can continue to access the capital markets on acceptable terms and conditions, our flexibility with regard to long term financing activity could be limited by our existing capital structure, our credit ratings and the health of the semiconductor industry. In addition, many of the factors that affect our ability to access the capital markets, such as the liquidity of the overall capital markets and the current state of the economy, are outside of our control. There can be no assurance that we will continue to have access to the capital markets on favorable terms.

Geopolitical instability, war, terrorist attacks and terrorist threats, and government responses thereto, may negatively affect all aspects of our operations, revenues, costs and stock price.

Any such event may disrupt our operations or those of our customers or suppliers. Our markets currently include South Korea, Taiwan, Russia and Israel, which are currently experiencing political instability. Additionally, we have accounting operations in the Philippines, an external foundry is located in South Korea and assembly subcontractors are located in Indonesia, the Philippines and South Korea.

Business interruptions may damage our facilities or those of our suppliers.

Our operations and those of our suppliers are vulnerable to interruption by fire, earthquake, flood and other natural disasters, as well as power loss, telecommunications failure and other events beyond our control. We do not have a detailed disaster recovery plan and do not have backup generators. Our facilities in California are located near major earthquake faults and have experienced earthquakes in the past. For example, the March 2011 earthquake in Japan adversely affected the operations of some of our Japanese suppliers, which limited the availability of certain production inputs to us for a period of time. If a natural disaster occurs, our ability to conduct our operations could be seriously impaired, which could harm our business, financial condition and results of operations and cash flows. We cannot be sure that the insurance we maintain against general business interruptions will be adequate to cover all our losses.

We may be affected by environmental laws and regulations.

We are subject to a variety of laws, rules and regulations related to the use, storage, handling, discharge and disposal of certain chemicals and gases used in our manufacturing process. Any of those regulations could require us to acquire expensive equipment or to incur substantial other expenses to comply with them. If we incur substantial additional expenses, product costs could significantly increase. Failure to comply with present or future environmental laws, rules and regulations could result in fines, suspension of production or cessation of operations.

Nathan Zommer, Ph.D. owns a significant interest in our common stock.

Nathan Zommer, Ph.D., our Chief Executive Officer, beneficially owned, as of October 23, 2014, approximately 21.3% of the outstanding shares of our common stock. As a result, Dr. Zommer can exercise significant control over all matters requiring stockholder approval, including the election of the Board of Directors. His holdings could result in a delay of, or serve as a deterrent to, any change in control of our company, which may reduce the market price of our common stock.

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Our stock price is volatile.

The market price of our common stock has fluctuated significantly to date. The future market price of our common stock may also fluctuate significantly in the event of:

• variations in our actual or expected quarterly operating results;

• announcements or introductions of new products;

• technological innovations by our competitors or development setbacks by us;

• conditions in semiconductor markets;

• the commencement or adverse outcome of litigation;

• changes in analysts’ estimates of our performance or changes in analysts’ forecasts regarding our industry, competitors or customers;

• announcements of merger or acquisition transactions or a failure to achieve the expected benefits of an acquisition as rapidly or to the extent anticipated by participants in the stock market;

• terrorist attack or war;

• sales of our common stock by one or more members of management, including Nathan Zommer, Ph.D., our Chief Executive Officer; or

• general economic and market conditions.

In addition, the stock market in recent years has experienced extreme price and volume fluctuations that have affected the market prices of many high technology companies, including semiconductor companies. These fluctuations have often been unrelated or disproportionate to the operating performance of companies in our industry, and could harm the market price of our common stock.

The anti-takeover provisions of our certificate of incorporation and of the Delaware General Corporation Law may delay, defer or prevent a change of control.

Our Board of Directors has the authority to issue up to 5,000,000 shares of preferred stock and to determine the price, rights, preferences, privileges and restrictions, including voting rights, of those shares without any further vote or action by our stockholders. The rights of the holders of common stock will be subject to, and may be harmed by, the rights of the holders of any shares of preferred stock that may be issued in the future. The issuance of preferred stock may delay, defer or prevent a change in control because the terms of any issued preferred stock could potentially prohibit our consummation of any merger, reorganization, sale of substantially all of our assets, liquidation or other extraordinary corporate transaction, without the approval of the holders of the outstanding shares of preferred stock. In addition, the issuance of preferred stock could have a dilutive effect on our stockholders.

Our stockholders must give substantial advance notice prior to the relevant meeting to nominate a candidate for director or present a proposal to our stockholders at a meeting. These notice requirements could inhibit a takeover by delaying stockholder action. The Delaware anti-takeover law restricts business combinations with some stockholders once the stockholder acquires 15% or more of our common stock. The Delaware statute makes it more difficult for us to be acquired without the consent of our Board of Directors and management.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

See the Index to Exhibits, which is incorporated by reference herein.

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SIGNATURES

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.

IXYS CORPORATION
By:	/s/ Uzi Sasson
	Uzi Sasson, President and Chief Financial Officer (Principal Financial Officer)

Date: November 7, 2014

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EXHIBIT INDEX

Exhibit No.	Description
31.1	Certificate of Chief Executive Officer required under Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certificate of Chief Financial Officer required under Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification required under Section 906 of the Sarbanes-Oxley Act of 2002. (1)
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

(1) This exhibit is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1933, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities and Exchange Act of 1993, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Nathan Zommer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of IXYS Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2014

/s/ Nathan Zommer

Nathan Zommer

Chairman of the Board and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Uzi Sasson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of IXYS Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2014

/s/ Uzi Sasson

Uzi Sasson

President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to 18 U.S.C. 1350, Nathan Zommer, the Chief Executive Officer of IXYS Corporation (the “Company”), and Uzi Sasson, the Chief Financial Officer of the Company, each hereby certifies that, to his knowledge:

1. The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2014, to which this Certification is attached as Exhibit 32.1 (the “Periodic Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Periodic Report fairly presents, in all material respects, the financial condition of the Company at the end of the periods covered by the Periodic Report and results of operations of the Company for the periods covered by the Periodic Report.

Dated: November 7, 2014

/s/ Nathan Zommer

Nathan Zommer

Chief Executive Officer

/s/ Uzi Sasson

Uzi Sasson

Chief Financial Officer

XML

Note 12 Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Sep. 30, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The components and the changes in accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2014 and 2013 were as follows (in thousands):
		Foreign Currency		Unrealized Gains (Losses) on Securities		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
				(unaudited)
Balance as of March 31, 2014		$	10,535	$	325	$	(5,831)	$	5,029
Other comprehensive income (loss)
	before reclassifications		(8,100)		(638)		-		(8,738)
Net losses (gains) reclassified from
	accumulated other comprehensive
	income		-		(19)		-		(19)
Net current period other comprehensive
	income (loss)		(8,100)		(657)		-		(8,757)
Balance as of September 30, 2014		$	2,435	$	(332)	$	(5,831)	$	(3,728)

		Foreign Currency		Unrealized Gains (Losses) on Securities		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
				(unaudited)
Balance as of March 31, 2013		$	2,982	$	60	$	(6,135)	$	(3,093)
Other comprehensive income (loss)
	before reclassifications		5,915		(35)		-		5,880
Net losses (gains) reclassified from
	accumulated other comprehensive
	income		-		(58)		-		(58)
Net current period other comprehensive
	income (loss)		5,915		(93)		-		5,822
Balance as of September 30, 2013		$	8,897	$	(33)	$	(6,135)	$	2,729

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended September 30, 2014 and 2013 are as follows (in thousands):
Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income								Impacted Line Item on Consolidated Income Statements
	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Net gain on investments	$	-	$	-	$	30	$	89	Other income (expense), net
Tax impact		-		-		(11)		(31)	Provision for income tax
Total reclassifications for the period	$	-	$	-	$	19	$	58	Income before income tax provision

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Note 10 Pension Plans (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2014 N
Pension and Other Postretirement Benefits Disclosure [Abstract]
Number of Defined Benefit Plans	3
Defined Benefit Plan, Measurement Date	March 31
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	$ 1.1

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Note 5 Other Assets (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Mar. 31, 2014
Other Assets [Abstract]
Marketable Equity Securities	$ 3,124	$ 4,158
Auction Rate Preferred Securities	350	350
Long-term Equity Investments	5,564	5,921
Other Items	654	1,352
Other Assets, Total	$ 9,692	$ 11,781

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Note 10 Pension Plans (Net Periodic Pension Expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service Cost	$ 26	$ 27	$ 52	$ 55
Interest Cost on Projected Benefit Obligation	467	461	940	919
Expected Return on Plan Assets	(494)	(411)	(991)	(820)
Recognized Actuarial Loss	18	57	36	113
Net Periodic Pension Expense	$ 17	$ 134	$ 37	$ 267

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Note 4 Fair Value (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Mar. 31, 2014
Auction Market Preferred Securities [Abstract]
Collateralized Asset Value Exceeding Value of ARPS Percentage	300.00%
Auction Rate Preferred Securities, Credit Ratings	at least AA
Auction Rate Preferred Securities, Percentage Collateralized	100.00%
Debt Instrument [Line Items]
Debt, Fair Value	$ 66.1	$ 51.6

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Note 5 Other Assets (Tables)

6 Months Ended

Sep. 30, 2014

Other Assets [Abstract]

Schedule of Other Assets, Noncurrent [Table Text Block]

	September 30,		March 31,
	2014		2014
	(unaudited)
Marketable equity securities	$	3,124	$	4,158
Auction rate preferred securities		350		350
Long-term equity investments		5,564		5,921
Other items		654		1,352
Total	$	9,692	$	11,781

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Note 11 Employee Equity Incentive Plans (Narratives) (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2014
Plan 2013 Approved on August 30, 2013 [Member]
Employee Equity Incentive Plans [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,000,000
Plan 2009 Approved on September 10, 2009 [Member]
Employee Equity Incentive Plans [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	900,000
Plan 2011 Approved on September 16, 2011 [Member]
Employee Equity Incentive Plans [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	600,000
Stock Options of Plans 2009 2011 and 2013 [Member]
Employee Equity Incentive Plans [Line Items]
Equity Incentives Exercise Price As a Percentage of Fair Market Value on Grant Date	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years 0 months 0 days
Share-based Compensation Arrangement by Share-based Payment Award, Expiration from Award Date	10 years 0 months 0 days
Stock Appreciation Rights of Plans 2009 and 2011 [Member]
Employee Equity Incentive Plans [Line Items]
Equity Incentives Exercise Price As a Percentage of Fair Market Value on Grant Date	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration from Award Date	10 years 0 months 0 days
Amended and Restated 1999 Employee Stock Purchase Plan [Member]
Employee Equity Incentive Plans [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,550,000
ESPP Discounted Purchase Price Percentage	85.00%
ESPP Purchase Period	semi-annual
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate	15.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans	50,417
Number of Employee Stock Purchase Plan Shares Available for Future Issuance	387,073
Equity Incentive Plans Total [Member]
Employee Equity Incentive Plans [Line Items]
Unrecognized Compensation Cost of Stock Option Granted	$ 5.7
Weighted Average Period of the Unrecognized Compensation Cost to be Recognized	2 years 8 months 12 days

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New Accounting Pronouncements (Policy)

6 Months Ended

Sep. 30, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements Policy [Policy Text Block]

In July 2013, the Financial Accounting Standards Board, or FASB, issued authoritative guidance on the presentation of unrecognized tax benefits. This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset in the case of a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent such a carryforward or loss is not available at the reporting date under the applicable tax law to settle any additional income taxes that would result from the disallowance of a tax position or the deferred tax asset will not be used for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability. The guidance became effective for us in the fiscal year that began on April 1, 2014 and did not have a material impact on our financial statements.

In April 2014, FASB issued changes to the criteria for determining which disposals are required to be presented as discontinued operations. The changes require a disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results when any of the following occurs: the component of an entity or group of components of an entity meets the criteria to be classified as held for sale, the component of an entity or group or components of an entity is disposed of by sale, or the component of an entity or group of components of an entity is disposed of other than by sale. The amendments apply on a prospective basis to disposals of components of an entity that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years, with early adoption permitted. We are currently evaluating the impact of the adoption of the standard on our consolidated financial statements.

In May 2014, FASB issued a new standard on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. The revenue standard's core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when or as the entity satisfies a performance obligation. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early adoption is prohibited. Different transition methods are available — full retrospective method, retrospective with certain practical expedients, and a modified retrospective (cumulative effect) approach. We are currently evaluating the impact of the adoption of the standard on our financial statements.

In August 2014, FASB issued a new standard on the disclosure of uncertainties about an entity's ability to continue as a going concern. The guidance seeks to define management's responsibility to decide whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early application is permitted. We are currently evaluating the impact of the adoption of the standard on our financial statements.

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Note 7 Accrued Expenses and Other Current Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Mar. 31, 2014
Accrued Expenses and Other Current Liabilities [Abstract]
Uninvoiced Goods and Services	$ 7,803	$ 9,098
Compensation and Benefits	7,245	6,880
Income Taxes	2,291	0
Short-term Installment Payment Obligation	15,639	30,781
Commission, Royalties and Other	3,396	3,407
Accrued Liabilities Current, Total	$ 36,374	$ 50,166

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Note 3 Business Combinations (Narratives) (Details) (USD $)	6 Months Ended		0 Months Ended	12 Months Ended	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 27, 2013 MCU Business [Member] N	Mar. 31, 2014 MCU Business [Member]	Sep. 30, 2014 Other Acquisition [Member]	Jun. 30, 2014 Other Acquisition [Member]
Business Acquisition [Line Items]
Business Acquisition, Name of Acquired Entity			System LSI Division of Samsung Electronics Co., Ltd.
Business Acquisition, Description of Acquired Entity			The acquired product line includes microcontrollers potentially useful in a number of applications, which have to date been principally used in consumer product applications.
Business Combination, Reason for Business Combination			The acquisition was intended to bolster our product portfolio and empower customers to utilize products from across our multiple product lines.
Business Acquisition, Effective Date of Acquisition			Jun. 27, 2013
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net			$ 50,000,000
Payments to Acquire Businesses, Net of Cash Acquired	2,297,000	20,000,000	20,000,000			2,297,000
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Total			30,000,000
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Each Installment			15,000,000
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Number of Installment Payments			2
Business Acquisition, Cost of Acquired Entity, Due Date of First Installment Payment			Jun. 26, 2014
Business Acquisition, Cost of Acquired Entity, Due Date of Second Installment Payment			Dec. 31, 2014
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Description of Variable Rate Basis			six-month LIBOR
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Basis Spread on Variable Rate			3.00%
Business Combination Acquisition Related Costs				403,000
Goodwill, Acquired During Period			25,164,000		2,800,000
Loans Assumed from Business Acquisition					723,000
Goodwill, Translation Adjustments					(196,000)
Goodwill, Purchase Accounting Adjustments					$ 17,000

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Note 10 Pension Plans (Tables)

6 Months Ended

Sep. 30, 2014

Pension and Other Postretirement Benefits Disclosure [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Service cost	$	26	$	27	$	52	$	55
Interest cost on projected benefit obligation		467		461		940		919
Expected return on plan assets		(494)		(411)		(991)		(820)
Recognized actuarial loss		18		57		36		113
Net periodic pension expense	$	17	$	134	$	37	$	267

Defined Benefit Plan, Plan Assets Fair Value [Table Text Block]

	September 30, 2014								March 31, 2014
Description	Level 1		Level 2		Level 3			Total	Level 1		Level 2		Level 3			Total
	(unaudited)								(unaudited)
Cash and cash funds	$	2,483	$	-	$	-	$	2,483	$	1,523	$	-	$	-	$	1,523
Currency contracts		-		(27)		-		(27)		-		(4)		-		(4)
Equity		19,431		529		6		19,966		20,946		439		2		21,387
Fixed interest		744		5,975		1		6,720		749		5,323		1		6,073
Mortgage backed securities		-		16		-		16		-		15		-		15
Swaps and other		-		61		(8)		53		1		18		-		19
Total	$	22,658	$	6,554	$	(1)	$	29,211	$	23,219	$	5,791	$	3	$	29,013

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Note 8 Goodwill and Intangible Assets (Finite-Lived Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Mar. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 38,087	$ 38,087
Accumulated Amortization	24,866	21,740
Net Intangible Assets	13,221	16,347
Developed Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	16,304	16,304
Accumulated Amortization	6,534	4,984
Net Intangible Assets	9,770	11,320
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	13,020	13,020
Accumulated Amortization	10,137	8,695
Net Intangible Assets	2,883	4,325
Contract Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	7,155	7,155
Accumulated Amortization	7,155	7,155
Net Intangible Assets	0	0
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	1,608	1,608
Accumulated Amortization	1,040	906
Net Intangible Assets	$ 568	$ 702

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Note 15 Income Taxes (Narratives) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Total Income Tax Provision	$ 3,235	$ 1,361	$ 4,784	$ 2,287
Effective Tax Provision Rate	36.00%	28.70%	33.90%	29.90%

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Note 12 Accumulated Other Comprehensive Income (Loss) (AOCI Change) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Mar. 31, 2014	Mar. 31, 2013
Changes in Accumulated Other Comprehensive Income (Loss) by Components [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (3,728)		$ 5,029
Foreign Currency [Member]
Changes in Accumulated Other Comprehensive Income (Loss) by Components [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	2,435	8,897	10,535	2,982
Other Comprehensive Income (Loss) before Reclassifications	(8,100)	5,915
Net Current Period Other Comprehensive Income (Loss)	(8,100)	5,915
Unrealized (Gains) Losses on Securities [Member]
Changes in Accumulated Other Comprehensive Income (Loss) by Components [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(332)	(33)	325	60
Other Comprehensive Income (Loss) before Reclassifications	(638)	(35)
Net Losses (Gains) Reclassified from Accumulated Other Comprehensive Income (Loss)	(19)	(58)
Net Current Period Other Comprehensive Income (Loss)	(657)	(93)
Defined Benefit Pension Plans [Member]
Changes in Accumulated Other Comprehensive Income (Loss) by Components [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(5,831)	(6,135)	(5,831)	(6,135)
Accumulated Other Comprehensive Income (Loss) [Member]
Changes in Accumulated Other Comprehensive Income (Loss) by Components [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(3,728)	2,729	5,029	(3,093)
Other Comprehensive Income (Loss) before Reclassifications	(8,738)	5,880
Net Losses (Gains) Reclassified from Accumulated Other Comprehensive Income (Loss)	(19)	(58)
Net Current Period Other Comprehensive Income (Loss)	$ (8,757)	$ 5,822

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Note 4 Fair Value (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Mar. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Equity Securities	$ 3,124		$ 4,158
Auction Rate Preferred Securities	350		350
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money Market Funds	89,646	[1],[2]	59,706	[1],[2]
Marketable Equity Securities	3,124	[1],[3]	4,158	[1],[3]
Auction Rate Preferred Securities	350	[1],[3]	350	[1],[3]
Derivative Liabilities	(67)	[1],[4]	(112)	[1],[4]
Fair Value, Net Asset (Liability)	93,053	[1]	64,102	[1]
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money Market Funds	89,646	[1],[2]	59,706	[1],[2]
Marketable Equity Securities	3,124	[1],[3]	4,158	[1],[3]
Fair Value, Net Asset (Liability)	92,770	[1]	63,864	[1]
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Auction Rate Preferred Securities	350	[1],[3]	350	[1],[3]
Derivative Liabilities	(67)	[1],[4]	(112)	[1],[4]
Fair Value, Net Asset (Liability)	$ 283	[1]	$ 238	[1]

[1] We did not have any recurring assets whose fair value was measured using significant unobservable inputs.

[2] Included in "Cash and cash equivalents" on our unaudited condensed consolidated balance sheets.

[3] Included in "Other assets" on our unaudited condensed consolidated balance sheets.

[4] Included in "Accrued expenses and other current liabilities" on our unaudited condensed consolidated balance sheets.

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Note 2 Recent Accounting Pronouncements and Accounting Changes

6 Months Ended

Sep. 30, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Pronouncements and Accounting Changes [Text Block]

2. Recent Accounting Pronouncements and Accounting Changes

In July 2013, the Financial Accounting Standards Board, or FASB, issued authoritative guidance on the presentation of unrecognized tax benefits. This new guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset in the case of a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent such a carryforward or loss is not available at the reporting date under the applicable tax law to settle any additional income taxes that would result from the disallowance of a tax position or the deferred tax asset will not be used for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability. The guidance became effective for us in the fiscal year that began on April 1, 2014 and did not have a material impact on our financial statements.

In April 2014, FASB issued changes to the criteria for determining which disposals are required to be presented as discontinued operations. The changes require a disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results when any of the following occurs: the component of an entity or group of components of an entity meets the criteria to be classified as held for sale, the component of an entity or group or components of an entity is disposed of by sale, or the component of an entity or group of components of an entity is disposed of other than by sale. The amendments apply on a prospective basis to disposals of components of an entity that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years, with early adoption permitted. We are currently evaluating the impact of the adoption of the standard on our consolidated financial statements.

In May 2014, FASB issued a new standard on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. The revenue standard's core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when or as the entity satisfies a performance obligation. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early adoption is prohibited. Different transition methods are available — full retrospective method, retrospective with certain practical expedients, and a modified retrospective (cumulative effect) approach. We are currently evaluating the impact of the adoption of the standard on our financial statements.

In August 2014, FASB issued a new standard on the disclosure of uncertainties about an entity's ability to continue as a going concern. The guidance seeks to define management's responsibility to decide whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods during the annual period. Early application is permitted. We are currently evaluating the impact of the adoption of the standard on our financial statements.

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Note 12 Accumulated Other Comprehensive Income (Loss) (AOCI Reclass) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Abstract]
Gain (Loss) on Investments Reclassified out of Accumulated Other Comprehensive Income (Loss)	$ 30	$ 89
Tax Impact on Gain (Loss) on Investments Reclassified out of Accumulated Other Comprehensive Income (Loss)	(11)	(31)
Net Gain (Loss) on Investments Reclassified out of Accumulated Other Comprehensive Income (Loss)	$ 19	$ 58

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Note 3 Business Combinations (Details) (MCU Business [Member], USD $) In Thousands, unless otherwise specified	0 Months Ended
	Jun. 27, 2013
MCU Business [Member]
Business Acquisition [Line Items]
Inventories	$ 800
Property, Plant and Equipment	36
Identifiable Intangible Assets	24,000
Total Identifiable Net Assets	24,836
Goodwill, Acquired During Period	25,164
Total Purchase Price	$ 50,000

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Computation of Earnings Per Share (Policy)

6 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share, Policy [Policy Text Block]

Basic net income available per common share is computed using net income and the weighted average number of common shares outstandingduring the period. Diluted net income per common share is computed using net income and the weighted average number of common shares outstanding, assuming dilution, which includes potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of restricted stock units using the treasury stock method.

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Employee Equity Incentive Plans (Policy)

6 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Purchase and Stock Option Plans

The 2009 Equity Incentive Plan, the 2011 Equity Incentive Plan andthe 2013 Equity Incentive Plan

On September 10, 2009, our stockholders approved the 2009 Equity Incentive Plan, or the 2009 Plan, under which 900,000 shares of our common stock are reserved for the grant of stock options and other equity incentives. OnSeptember 16, 2011, our stockholders approved the 2011 Equity Incentive Plan, or the 2011 Plan, under which 600,000 shares of our common stock are reserved for the grant of stock options and other equity incentives.On August 30, 2013, our stockholders approved the 2013 Equity Incentive Plan, or the 2013 Plan, under which 2,000,000 shares of our common stock are reserved for the grant of stock options and other equity incentives. The 2009 Plan, the 2011 Plan and the 2013 Plan are referred to as the Plans.

Stock Options

Under the Plans, nonqualified and incentive stock options may be granted to employees, consultants and non-employee directors. Generally, the per share exercise price shall not be less than 100% of the fair market value of a share on the grant date. The Board of Directors has the full power to determine the provisions of each option issued under the Plans. While we may grant options that become exercisable at different times or within different periods, we have primarily granted options that vest over four years. The options, once granted, expire ten years from the date of grant.

Stock Awards

Stock awards, denominated restricted stock under the 2009 Plan and the 2011 Plan, may be granted to any employee, director or consultant under the Plans. Pursuant to a stock award, we will issue shares ofcommon stock. Shares that are subject to restriction will be released from restriction if certain requirements, including continued performance of services, are met.

Stock Appreciation Rights

Awards of stock appreciation rights, or SARs, may be granted to employees, consultants and non-employee directors pursuant to the Plans. A SAR is payable on the difference between the market price at the time of exercise and the exercise price at the date of grant. In any event, the exercise price of a SAR shall not be less than 100% of the fair market value of a share on the grant date and shall expire no later than ten years from the grant date. Upon exercise, the holder of a SAR shall be entitled to receive payment either in cash or a number of shares by dividing such cash amount by the fair market value of a share on the exercise date.

Restricted Stock Units

Restricted stock units, denominated performance units in the 2009 Plan, may be granted to employees, consultants and non-employee directors under the Plans. Each restricted stock unit shall have a value equal to the fair market value of one share. After the applicable performance period has ended, the holder will be entitled to receive a payment, either in cash or in the form of shares, based on the number of restricted stock units earned over the performance period, to be determined as a function of the extent to which the corresponding performance goals or other vesting provisions have been achieved.

Employee Stock Purchase Plan

Under the Purchase Plan, all eligible employees may purchase our common stock at a price equal to 85% of the lower of the fair market value at the beginning of the offer period or the semi-annual purchase date. Stock purchases are limited to 15% of an employee's eligible compensation.

Stock-Based Compensation

The Black-Scholes option pricing model is used to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our stock purchase plan.

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Note 10 Pension Plans (Information on Plan Assets) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Mar. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 29,211	$ 29,013
Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	22,658	23,219
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	6,554	5,791
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	(1)	3
Cash and Cash Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	2,483	1,523
Cash and Cash Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	2,483	1,523
Currency Contracts [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	(27)	(4)
Currency Contracts [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	(27)	(4)
Equity [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	19,966	21,387
Equity [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	19,431	20,946
Equity [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	529	439
Equity [Member] | Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	6	2
Fixed Interest [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	6,720	6,073
Fixed Interest [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	744	749
Fixed Interest [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	5,975	5,323
Fixed Interest [Member] | Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	1	1
Mortgage Backed Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	16	15
Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	16	15
Swaps and Other [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	53	19
Swaps and Other [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets		1
Swaps and Other [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	61	18
Swaps and Other [Member] | Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ (8)

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Note 3 Business Combinations (Acquired Finite-Lived Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended
	Jun. 27, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 24,000
Developed Intellectual Property [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	11,504
Finite-Lived Intangible Assets, Amortization Method	Straight-line
Acquired Finite-Lived Intangible Assets, Estimated Useful Life	60 months
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	6,920
Finite-Lived Intangible Assets, Amortization Method	Accelerated
Acquired Finite-Lived Intangible Assets, Estimated Useful Life	36 months
Contract Backlog [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	5,155
Finite-Lived Intangible Assets, Amortization Method	Straight-line
Acquired Finite-Lived Intangible Assets, Estimated Useful Life	9 months
Non-competition Agreement [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 421
Finite-Lived Intangible Assets, Amortization Method	Straight-line
Acquired Finite-Lived Intangible Assets, Estimated Useful Life	60 months

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Segment and Geographic Information (Policy)

6 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting, Policy [Policy Text Block]

We have a single operating segment. This operating segment is comprised of semiconductor products used primarily in power-related applications. While we have separate legal subsidiaries with discrete financial information, we have one chief operating decision maker with highly integrated businesses.

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Note 3 Business Combinations (Tables)

6 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Schedule of Business Combination Recognized Identifiable Assets Acquired, Goodwill and Liabilities Assumed, Net [Table Text Block]

		Purchase Price Allocation
		(unaudited)
Inventories		$	800
Property, plant and equipment			36
Identifiable intangible assets			24,000
	Total identifiable net assets		24,836
Goodwill			25,164
	Total purchase price	$	50,000

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

					Estimated
		Fair Value		Amortization	Useful Life
		(In thousands)		Method	(In months)
				(unaudited)
Developed intellectual property		$	11,504	Straight-line	60
Customer relationships			6,920	Accelerated	36
Contract backlog			5,155	Straight-line	9
Non-competition agreement			421	Straight-line	60
	Total	$	24,000

Business Acquisition, Pro Forma Information [Table Text Block]

	Three Months Ended		Six Months Ended
	September 30, 2013		September 30, 2013
	(unaudited)		(unaudited)
Pro forma net revenues	$	85,901	$	180,985
Pro forma net income	$	5,721	$	10,156
Pro forma net income per share (basic)	$	0.18	$	0.33
Pro forma net income per share (diluted)	$	0.18	$	0.32

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Note 1 Unaudited Condensed Consolidated Financial Statements

6 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting [Text Block]

1. Unaudited Condensed Consolidated Financial Statements

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of IXYS Corporation and its wholly-owned subsidiaries. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates that require management's most difficult judgments include, but are not limited to, revenue reserves, inventory valuation, accounting for income taxes and allocation of purchase price in business combinations. All significant intercompany transactions have been eliminated in consolidation. All adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair statement of the results for the interim periods have been made. The condensed balance sheet as of March 31,2014 has been derived from our audited balance sheet as of that date. It is recommended that the interim financial statements be read in conjunction with our audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2014, or fiscal 2014,contained in our Annual Report on Form 10-K. Interim results are not necessarily indicative of the operating results expected for later quarters or the full fiscal year.

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Note 4 Fair Value (Tables)

6 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

			September 30, 2014 (1)						March 31, 2014 (1)
					Fair Value Measured at						Fair Value Measured at
					Reporting Date Using						Reporting Date Using
Description			Total		Level 1		Level 2		Total		Level 1		Level 2
			(unaudited)						(unaudited)
Money market funds (2)			$	89,646	$	89,646	$	-	$	59,706	$	59,706	$	-
Marketable equity securities (3)				3,124		3,124		-		4,158		4,158		-
Auction rate preferred securities (3)				350		-		350		350		-		350
Derivative liabilities (4)				(67)		-		(67)		(112)		-		(112)
	Total		$	93,053	$	92,770	$	283	$	64,102	$	63,864	$	238
(1)		We did not have any recurring assets whose fair value was measured using significant unobservable inputs.
(2)		Included in "Cash and cash equivalents" on our unaudited condensed consolidated balance sheets.
(3)		Included in "Other assets" on our unaudited condensed consolidated balance sheets.
(4)		Included in "Accrued expenses and other current liabilities" on our unaudited condensed consolidated balance sheets.

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Note 13 Computation of Earnings Per Share (Tables)

6 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Six Months Ended
		September 30,				September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Net income	$	5,747	$	3,383	$	9,322	$	5,362
Weighted average shares - basic		31,499		31,127		31,439		31,037
Weighted average shares - diluted		32,235		31,849		32,142		31,737
Net income per share - basic	$	0.18	$	0.11	$	0.30	$	0.17
Net income per share - diluted	$	0.18	$	0.11	$	0.29	$	0.17

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Note 9 Borrowing and Deferred Payment Arrangements (Narratives) (Details)	3 Months Ended			3 Months Ended	0 Months Ended		3 Months Ended
	Sep. 30, 2014 Loan Payable [Member] IKB Deutshe Industriebank [Member] USD ($)	Sep. 30, 2014 Loan Payable [Member] IKB Deutshe Industriebank [Member] EUR (€)	Sep. 30, 2014 Loan Payable [Member] Other Bank [Member] USD ($)	Sep. 30, 2014 Notes Payable, Other Payables [Member] USD ($)	Jun. 27, 2013 MCU Business [Member] USD ($) N	Sep. 30, 2014 MCU Business [Member]	Sep. 30, 2014 Minimum [Member] Loan Payable [Member] IKB Deutshe Industriebank [Member]	Sep. 30, 2014 Maximum [Member] Loan Payable [Member] IKB Deutshe Industriebank [Member]	Sep. 30, 2014 Bank of West Amended and Restated Credit Agreement December 6 2013 [Member] USD ($)	Sep. 30, 2014 Bank of West Amended and Restated Credit Agreement December 6 2013 [Member] Minimum [Member]	Sep. 30, 2014 Bank of West Amended and Restated Credit Agreement December 6 2013 [Member] Maximum [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Initiation Date									Dec. 06, 2013
Line of Credit Facility, Expiration Date									Nov. 30, 2015
Line of Credit Facility, Amount Outstanding									$ 45,000,000
Line of Credit Facility, Maximum Borrowing Capacity									50,000,000
Line of Credit Facility, Basis Spread on Variable Rate										0.75%	2.50%
Line of Credit Facility, Interest Rate at Period End									1.95%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage										0.25%	0.625%
Available Credit Line for Letter of Credit									3,000,000
Line of Credit Facility, Interest Rate Description									LIBOR plus a margin, an alternative base rate plus a margin or a floating rate plus a margin
Business Acquisition [Line Items]
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Total					30,000,000
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Each Installment					15,000,000
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Number of Installment Payments					2
Business Acquisition, Cost of Acquired Entity, Due Date of First Installment Payment					Jun. 26, 2014
Business Acquisition, Cost of Acquired Entity, Due Date of Second Installment Payment					Dec. 31, 2014
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Description of Variable Rate Basis					six-month LIBOR
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Basis Spread on Variable Rate					3.00%
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Interest Rate at Period End						3.33%
Debt Instrument [Line Items]
Debt Instrument, Face Amount	12,200,000	10,000,000
Debt Instrument, Issuance Date	Jun. 10, 2005	Jun. 10, 2005
Debt Instrument, Maturity Date	Jun. 30, 2020	Jun. 30, 2020
Debt Instrument, Payment Terms	each fiscal quarter	each fiscal quarter
Debt Instrument, Description of Variable Rate Basis	three month Euribor rate	three month Euribor rate
Debt Instrument, Basis Spread on Variable Rate							0.70%	1.25%
Debt Instrument, Periodic Payment, Principal	212,000	167,000
Long-term Debt, Gross	4,900,000	3,800,000
Derivative, Inception Date	Jun. 30, 2010	Jun. 30, 2010
Derivative, Maturity Date	Jun. 30, 2015	Jun. 30, 2015
Derivative, Swaption Interest Rate	1.99%	1.99%
Debt Instrument, Interest Rate at Period End	2.69%	2.69%
Loans Assumed from Business Acquisition			$ 99,000	$ 723,000
Debt Instrument, Maturity Date, Description				from fiscal 2017 to fiscal 2021

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Statement of Financial Position (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Mar. 31, 2014
Current assets:
Cash and cash equivalents	$ 124,944	$ 98,438
Restricted cash	693	337
Accounts receivable, net of allowances of $4,039 at September 30, 2014 and $3,013 at March 31, 2014	42,419	45,707
Inventories	93,145	93,028
Prepaid expenses and other current assets	3,675	9,520
Deferred income taxes	7,782	7,975
Total current assets	272,658	255,005
Property, plant and equipment, net	48,010	50,569
Intangible assets, net	13,221	16,347
Goodwill	27,749	25,164
Deferred income taxes	24,569	24,316
Other assets	9,692	11,781
Total assets	395,899	383,182
Current liabilities:
Current portion of capitalized lease obligations	1,527	2,468
Current portion of loans payable	969	1,028
Accounts payable	14,659	15,684
Accrued expenses and other current liabilities	36,374	50,166
Total current liabilities	53,529	69,346
Capitalized lease obligations, net of current portion	159	723
Long term loans, net of current portion	49,515	19,831
Pension liabilities	13,882	15,545
Other long term liabilities	7,105	7,105
Total liabilities	124,190	112,550
Commitments and contingencies (Note 16)
Stockholders' equity:
Preferred stock, $0.01 par value: (Authorized: 5,000,000 shares; none issued and outstanding)	0	0
Common stock, $0.01 par value: (Authorized: 80,000,000 shares; 38,067,326 issued and 31,545,600 outstanding at September 30, 2014 and 38,016,909 issued and 31,353,819 outstanding at March 31, 2014)	381	380
Additional paid-in capital	207,638	206,290
Treasury stock, at cost: 6,521,726 common shares at September 30, 2014 and 6,663,090 common shares at March 31, 2014	(57,535)	(58,782)
Retained earnings	124,953	117,715
Accumulated other comprehensive income (loss)	(3,728)	5,029
Total stockholders' equity	271,709	270,632
Total liabilities and stockholders' equity	$ 395,899	$ 383,182

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Note 3 Business Combinations (Details) (Pro Forma) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended	6 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Business Acquisition, Pro Forma Information [Abstract]
Business Acquisition, Pro Forma Revenue	$ 85,901	$ 180,985
Business Acquisition, Pro Forma Net Income	$ 5,721	$ 10,156
Business Acquisition, Pro Forma Earnings Per Share, Basic	$ 0.18	$ 0.33
Business Acquisition, Pro Forma Earnings Per Share, Diluted	$ 0.18	$ 0.32

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Statement of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Income and Comprehensive Income [Abstract]
Taxes (benefits) on changes in unrealized gain (loss)	$ (188)	$ 134	$ (342)	$ (18)
Taxes (benefits) on reclassification adjustment for sales of securities included in net income	$ 0	$ 0	$ (11)	$ (31)

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Note 11 Employee Equity Incentive Plans (Fair Value and Assumptions) (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014		Sep. 30, 2013
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions and Methodology [Line Items]
Weighted Average Estimated Fair Value of Grant Per Share	$ 5.54	$ 4.95	$ 5.54		$ 4.95
Risk-free Interest Rate	1.80%	1.90%	1.80%		1.90%
Expected Term in Years	6 years 3 months	6 years 0 months 25 days	6 years 3 months		6 years 0 months 25 days
Volatility	52.20%	55.50%	52.20%		55.50%
Dividend Yield	1.00%	0.00%	1.00%		0.00%
Amended and Restated 1999 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions and Methodology [Line Items]
Weighted Average Estimated Fair Value of Grant Per Share			$ 2.90	[1]	$ 2.60	[1]
Risk-free Interest Rate			0.10%	[1]	0.10%	[1]
Expected Term in Years			0 years 6 months 0 days	[1]	0 years 6 months 0 days	[1]
Volatility			34.50%	[1]	38.50%	[1]
Dividend Yield			1.06%	[1]	0.00%	[1]

[1] Under the stock purchase plan, rights to purchase shares are only granted during the first and third quarters of each fiscal year.

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Note 7 Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Sep. 30, 2014

Accrued Expenses and Other Current Liabilities [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities [Table Text Block]

		September 30,		March 31,
		2014		2014
		(unaudited)
Uninvoiced goods and services		$	7,803	$	9,098
Compensation and benefits			7,245		6,880
Income taxes			2,291		-
Short-term installment payment obligation			15,639		30,781
Commission, royalties and other			3,396		3,407
	Total	$	36,374	$	50,166

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Note 14 Segment and Geographic Information (Narratives) (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2014 N	Sep. 30, 2013 N	Sep. 30, 2014 N	Sep. 30, 2013 N
Segment Reporting [Abstract]
Top Customer Percentage More Than 10% of Total Revenue	11.40%	12.10%	10.90%	12.50%
Second Customer Percentage More Than 10% of Total Revenue				10.60%
Number of Major Customers	1	1	1	2

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Note 15 Income Taxes

6 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

15. Income Taxes

For the three and six months ended September 30, 2014, we recorded income tax provisions of $3.2 million and $4.8 million, reflecting effective tax rates of 36.0% and 33.9%, respectively. For the three and six months ended September 30, 2013, we recorded income tax provisions of $1.4 million and $2.3 million, reflecting effective tax rates of 28.7% and 29.9%, respectively. For the three and six months ended September 30, 2014, the effective tax rates were affected by changes in estimates of annual income in domestic and foreign jurisdictions. For the three and six months ended September 30,2013, the effective tax rates were affected by changes in estimates of annual income in domestic and foreign jurisdictions and certain discrete items.

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Note 8 Goodwill and Intangible Assets (Tables)

6 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	September 30, 2014						March 31, 2014
	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets		Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(unaudited)						(unaudited)
Developed intellectual property	$	16,304	$	6,534	$	9,770	$	16,304	$	4,984	$	11,320
Customer relationships		13,020		10,137		2,883		13,020		8,695		4,325
Contract backlog		7,155		7,155		-		7,155		7,155		-
Other intangible assets		1,608		1,040		568		1,608		906		702
Total identifiable intangible assets	$	38,087	$	24,866	$	13,221	$	38,087	$	21,740	$	16,347

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Unaudited Condensed Consolidated Financial Statements (Policy)

6 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting [Policy Text Block]

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of IXYS Corporation and its wholly-owned subsidiaries. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates that require management's most difficult judgments include, but are not limited to, revenue reserves, inventory valuation, accounting for income taxes and allocation of purchase price in business combinations. All significant intercompany transactions have been eliminated in consolidation. All adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair statement of the results for the interim periods have been made. The condensed balance sheet as of March 31,2014 has been derived from our audited balance sheet as of that date. It is recommended that the interim financial statements be read in conjunction with our audited consolidated financial statements and notes thereto for the fiscal year ended March 31, 2014, or fiscal 2014,contained in our Annual Report on Form 10-K. Interim results are not necessarily indicative of the operating results expected for later quarters or the full fiscal year.

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Note 16 Commitments and Contingencies (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	0 Months Ended
	Sep. 30, 2014 Bank of West Amended and Restated Credit Agreement December 6 2013 [Member]	Jun. 27, 2013 MCU Business [Member] N
Business Acquisition [Line Items]
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Total		$ 30.0
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Each Installment		15.0
Business Acquisition, Cost of Acquired Entity, Deferred Payments, Number of Installment Payments		2
Business Acquisition, Cost of Acquired Entity, Due Date of First Installment Payment		Jun. 26, 2014
Business Acquisition, Cost of Acquired Entity, Due Date of Second Installment Payment		Dec. 31, 2014
Line of Credit Facility [Line Items]
Line of Credit Facility, Initiation Date	Dec. 06, 2013
Line of Credit Facility, Expiration Date	Nov. 30, 2015
Line of Credit Facility, Amount Outstanding	45.0
Line of Credit Facility, Maximum Borrowing Capacity	50.0
Available Credit Line for Letter of Credit	$ 3.0

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Statement of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net Income	$ 9,322	$ 5,362
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,148	8,597
Provision for receivable allowances	5,516	4,282
Net change in inventory provision	1,653	1,271
Foreign currency adjustments on intercompany amounts	(2,054)	418
Stock-based compensation	1,378	1,341
Loss (gain) on investments and disposal of fixed assets	(34)	(186)
Changes in operating assets and liabilities, net of business acquired:
Accounts receivable	(3,249)	(11,606)
Inventories	(5,310)	(3,659)
Prepaid expenses and other current assets	5,016	(1,936)
Other assets	790	(706)
Accounts payable	(1,067)	6,073
Accrued expenses and other liabilities	2,232	2,772
Pension liabilities	(657)	(751)
Net cash provided by (used in) operating activities	22,684	11,272
Cash flows from investing activities:
Change in restricted cash	(356)	(17)
Purchase of business, net of cash and cash equivalents acquired and deferred payments	(2,297)	(20,000)
Purchases of property and equipment	(4,609)	(3,929)
Proceeds from sale of investments	54	324
Net cash used in investing activities	(7,208)	(23,622)
Cash flows from financing activities:
Principal payments on capital lease obligations	(1,336)	(1,247)
Repayments of loans and notes payable	(629)	(489)
Repayments of deferred payment of business acquisition	(15,000)	0
Proceeds from loans	30,000	0
Proceeds from employee equity plans	1,430	2,211
Purchases of treasury stock	0	(433)
Payment of cash dividends to stockholders	(2,047)	(1,865)
Net cash provided by (used in) financing activities	12,418	(1,823)
Effect of exchange rate fluctuations on cash and cash equivalents	(1,388)	1,960
Net increase (decrease) in cash and cash equivalents	26,506	(12,213)
Cash and cash equivalents at beginning of period	98,438	107,116
Cash and cash equivalents at end of period	$ 124,944	$ 94,903

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Statement of Financial Position (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Mar. 31, 2014
Current assets:
Accounts receivable allowance for doubtful accounts	$ 4,039	$ 3,013
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	38,067,326	38,016,909
Common stock, shares outstanding	31,545,600	31,353,819
Treasury stock, shares	6,521,726	6,663,090

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Note 10 Pension Plans

6 Months Ended

Sep. 30, 2014

Pension and Other Postretirement Benefits Disclosure [Abstract]

Pension Plans [Text Block]

10. Pension Plans

We maintain three defined benefit pension plans: one for United Kingdom employees, one forGerman employees, and one for Philippine employees. We deposit funds for these plans, consistent with the requirements of local law, with investment management companies, insurance companies, banks or trustees and accrue for the unfunded portion of the obligations. The measurement date for the projected benefit obligations and the plan assets is March 31. The United Kingdom and German plans have been curtailed. As such, the plans are closed to new entrants and no credit is provided for additional periods of service. The German plan was held by a separate legal entity. As of September 30, 2014, the German defined benefit plan was completely unfunded. We expect to contribute approximately $1.1 million to the United Kingdom and the Philippines plans in the fiscal year ending March 31, 2015. This contribution is primarily contractual.

The net periodic pension expense includes the following components (in thousands):

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Service cost	$	26	$	27	$	52	$	55
Interest cost on projected benefit obligation		467		461		940		919
Expected return on plan assets		(494)		(411)		(991)		(820)
Recognized actuarial loss		18		57		36		113
Net periodic pension expense	$	17	$	134	$	37	$	267

Information on Plan Assets

We report and measure the plan assets of our defined benefit pension plans at fair value. The table below sets forth the fair value of our plan assets as of September 30, 2014 and March 31, 2014, using the same three-level hierarchy of fair-value inputs described in Note 4, “Fair Value” (in thousands):

	September 30, 2014								March 31, 2014
Description	Level 1		Level 2		Level 3			Total	Level 1		Level 2		Level 3			Total
	(unaudited)								(unaudited)
Cash and cash funds	$	2,483	$	-	$	-	$	2,483	$	1,523	$	-	$	-	$	1,523
Currency contracts		-		(27)		-		(27)		-		(4)		-		(4)
Equity		19,431		529		6		19,966		20,946		439		2		21,387
Fixed interest		744		5,975		1		6,720		749		5,323		1		6,073
Mortgage backed securities		-		16		-		16		-		15		-		15
Swaps and other		-		61		(8)		53		1		18		-		19
Total	$	22,658	$	6,554	$	(1)	$	29,211	$	23,219	$	5,791	$	3	$	29,013

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Document and Entity Information	6 Months Ended
	Sep. 30, 2014	Oct. 23, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	IXYS CORP /DE/
Entity Central Index Key	0000945699
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock Shares Outstanding		31,545,600
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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Note 11 Employee Equity Incentive Plans

6 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11. Employee Equity Incentive Plans

Stock Purchase and Stock Option Plans

The 2009 Equity Incentive Plan, the 2011 Equity Incentive Plan andthe 2013 Equity Incentive Plan

On September 10, 2009, our stockholders approved the 2009 Equity Incentive Plan, or the 2009 Plan, under which 900,000 shares of our common stock are reserved for the grant of stock options and other equity incentives. OnSeptember 16, 2011, our stockholders approved the 2011 Equity Incentive Plan, or the 2011 Plan, under which 600,000 shares of our common stock are reserved for the grant of stock options and other equity incentives.On August 30, 2013, our stockholders approved the 2013 Equity Incentive Plan, or the 2013 Plan, under which 2,000,000 shares of our common stock are reserved for the grant of stock options and other equity incentives. The 2009 Plan, the 2011 Plan and the 2013 Plan are referred to as the Plans.

Stock Options

Under the Plans, nonqualified and incentive stock options may be granted to employees, consultants and non-employee directors. Generally, the per share exercise price shall not be less than 100% of the fair market value of a share on the grant date. The Board of Directors has the full power to determine the provisions of each option issued under the Plans. While we may grant options that become exercisable at different times or within different periods, we have primarily granted options that vest over four years. The options, once granted, expire ten years from the date of grant.

Stock Awards

Stock awards, denominated restricted stock under the 2009 Plan and the 2011 Plan, may be granted to any employee, director or consultant under the Plans. Pursuant to a stock award, we will issue shares ofcommon stock. Shares that are subject to restriction will be released from restriction if certain requirements, including continued performance of services, are met.

Stock Appreciation Rights

Awards of stock appreciation rights, or SARs, may be granted to employees, consultants and non-employee directors pursuant to the Plans. A SAR is payable on the difference between the market price at the time of exercise and the exercise price at the date of grant. In any event, the exercise price of a SAR shall not be less than 100% of the fair market value of a share on the grant date and shall expire no later than ten years from the grant date. Upon exercise, the holder of a SAR shall be entitled to receive payment either in cash or a number of shares by dividing such cash amount by the fair market value of a share on the exercise date.

Restricted Stock Units

Restricted stock units, denominated performance units in the 2009 Plan, may be granted to employees, consultants and non-employee directors under the Plans. Each restricted stock unit shall have a value equal to the fair market value of one share. After the applicable performance period has ended, the holder will be entitled to receive a payment, either in cash or in the form of shares, based on the number of restricted stock units earned over the performance period, to be determined as a function of the extent to which the corresponding performance goals or other vesting provisions have been achieved.

Employee Stock Purchase Plan

The Board of Directors has approved the Amended and Restated 1999 Employee Stock Purchase Plan, or the Purchase Plan, and reserved a total of 1,550,000 shares of common stock for issuance under the Purchase Plan. Under the Purchase Plan, all eligible employees may purchase our common stock at a price equal to 85% of the lower of the fair market value at the beginning of the offer period or the semi-annual purchase date. Stock purchases are limited to 15% of an employee's eligible compensation. During the six months ended September 30, 2014, there were 50,417 shares purchased under the Purchase Plan, leaving approximately 387,073 shares available for purchase under the Purchase Plan in the future.

Stock-Based Compensation

The following table summarizes the effects of stock-based compensation charges (in thousands):

		Three Months Ended September 30,				Six Months Ended September 30,
Statement of Operations Classifications			2014		2013		2014		2013
		(unaudited)				(unaudited)
Cost of goods sold		$	102	$	83	$	210	$	249
Research, development and engineering			189		248		378		456
Selling, general and administrative expenses			406		339		790		636
Stock-based compensation effect in income before taxes			697		670		1,378		1,341
Provision for income taxes (1)			244		208		482		416
Net stock-based compensation effects in net income		$	453	$	462	$	896	$	925
________________
(1)	Calculated at the U.S. statutory federal income tax rate of 35% in fiscal 2015 and an estimated income tax rate of 31% in fiscal 2014.

During the six months endedSeptember 30,2014, the unaudited condensed consolidated statements of operations and cash flows do not reflect any tax benefit for the tax deduction from option exercises and other awards. As of September 30, 2014, approximately $5.7 millionin stock-based compensation is to be recognized for unvested stock options granted under our equity incentive plans. The unrecognized compensation cost is expected to be recognized over a weighted average period of 2.7years.

The Black-Scholes option pricing model is used to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our stock purchase plan. The weighted average estimated fair values of employee stock option grants and rights granted under the 1999 Employee Stock Purchase Plan, as well as the weighted average assumptions that were used in calculating such values during the six months ended September 30, 2014and 2013, were based on estimates at the date of grant as follows:

		Stock Options								Purchase Plan (1)
		Three Months Ended September 30,				Six Months Ended September 30,				Six Months Ended September 30,
			2014		2013		2014		2013		2014		2013
Weighted average estimated fair
	value of grant per share	$	5.54	$	4.95	$	5.54	$	4.95	$	2.90	$	2.60
Risk-free interest rate			1.8%		1.9%		1.8%		1.9%		0.1%		0.1%
Expected term in years			6.25		6.07		6.25		6.07		0.5		0.5
Volatility			52.2%		55.5%		52.2%		55.5%		34.5%		38.5%
Dividend yield			1.0%		0%		1.0%		0%		1.06%		0%
(1)	Under the stock purchase plan, rights to purchase shares are only granted during the first and third quarters of each fiscal year.

Activity with respect to outstanding stock options for the six months endedSeptember 30, 2014 was as follows:

			Weighted Average
		Number of	Exercise Price			Intrinsic Value (1)
		Shares	Per Share
			(unaudited)
						(000)
Balance at March 31, 2014		5,201,635	$	10.22
	Options granted	249,000	$	11.83
	Options exercised	(259,750)	$	8.63	$	1,043
	Options cancelled	(75,250)	$	11.37
	Options expired	(52,500)	$	10.74
Balance at September 30, 2014		5,063,135	$	10.36
Exercisable at September 30, 2014		3,863,385	$	10.12
Exercisable at March 31, 2014		3,865,885	$	10.00
(1)	Represents the difference between the exercise price and the value of our common stock at the time of exercise.

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Statement of Earnings (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]
Net revenues	$ 86,435	$ 85,901	$ 174,515	$ 157,087
Cost of goods sold	60,265	58,000	123,345	108,049
Gross profit	26,170	27,901	51,170	49,038
Operating expenses:
Research, development and engineering	6,948	7,453	14,198	15,140
Selling, general and administrative	10,713	10,583	21,477	20,626
Amortization of acquired intangible assets	1,419	3,425	3,126	3,671
Total operating expenses	19,080	21,461	38,801	39,437
Operating income	7,090	6,440	12,369	9,601
Other income (expense):
Interest income	49	36	96	76
Interest expense	(322)	(480)	(732)	(693)
Other income (expense), net	2,165	(1,252)	2,373	(1,335)
Income before income tax provision	8,982	4,744	14,106	7,649
Provision for income tax	(3,235)	(1,361)	(4,784)	(2,287)
Net income	$ 5,747	$ 3,383	$ 9,322	$ 5,362
Net income per share:
Basic	$ 0.18	$ 0.11	$ 0.30	$ 0.17
Diluted	$ 0.18	$ 0.11	$ 0.29	$ 0.17
Cash dividends per common share	$ 0.035	$ 0.03	$ 0.065	$ 0.06
Weighted average shares used in per share calculation:
Basic	31,499	31,127	31,439	31,037
Diluted	32,235	31,849	32,142	31,737

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Note 5 Other Assets

6 Months Ended

Sep. 30, 2014

Other Assets [Abstract]

Other Assets Disclosure [Text Block]

5. Other Assets

Other assets consist of the following (in thousands):

	September 30,		March 31,
	2014		2014
	(unaudited)
Marketable equity securities	$	3,124	$	4,158
Auction rate preferred securities		350		350
Long-term equity investments		5,564		5,921
Other items		654		1,352
Total	$	9,692	$	11,781

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Note 4 Fair Value

6 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

4. Fair Value

We account for certain assets and liabilities at fair value. In determining fair value, we consider its principal or most advantageous market and the assumptions that market participants would use when pricing, such as inherent risk, restrictions on sale and risk of non-performance. The fair value hierarchy is based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy:

Level 1 — Quoted prices for identical instruments in active markets.

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.

Level 3 — Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.

Assets and liabilities measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of September 30, 2014and March 31,2014 (in thousands):

			September 30, 2014 (1)						March 31, 2014 (1)
					Fair Value Measured at						Fair Value Measured at
					Reporting Date Using						Reporting Date Using
Description			Total		Level 1		Level 2		Total		Level 1		Level 2
			(unaudited)						(unaudited)
Money market funds (2)			$	89,646	$	89,646	$	-	$	59,706	$	59,706	$	-
Marketable equity securities (3)				3,124		3,124		-		4,158		4,158		-
Auction rate preferred securities (3)				350		-		350		350		-		350
Derivative liabilities (4)				(67)		-		(67)		(112)		-		(112)
	Total		$	93,053	$	92,770	$	283	$	64,102	$	63,864	$	238
(1)		We did not have any recurring assets whose fair value was measured using significant unobservable inputs.
(2)		Included in "Cash and cash equivalents" on our unaudited condensed consolidated balance sheets.
(3)		Included in "Other assets" on our unaudited condensed consolidated balance sheets.
(4)		Included in "Accrued expenses and other current liabilities" on our unaudited condensed consolidated balance sheets.

We measure our marketable securities and derivative contracts at fair value. Marketable securities are valued using the quoted market prices and are therefore classified as Level 1 estimates.

From time to time, we use derivative instruments to manage exposure to changes in interest rates and currency exchange rates, and the fair values of these instruments are recorded on the balance sheets. We have elected not to designate these instruments as accounting hedges. The changes in the fair value of these instruments are recorded in the current period's statement of operations and are included in other income (expense), net. All of our derivative instruments are traded on over-the-counter markets where quoted market prices are not readily available. For those derivatives, we measure fair value using prices obtained from the counterparties with whom we have traded. The counterparties price the derivatives based on models that use primarily market observable inputs, such as yield curves and option volatilities. Accordingly, we classify these derivatives as Level 2. See Note 9, “Borrowing and Deferred Payment Arrangements” for further information regarding the terms of the derivative contract.

Auction rate preferred securities, or ARPS, are stated at par value based upon observable inputs including historical redemptions received from the ARPS issuers. All of our ARPS have credit ratings of at least AA, are 100% collateralized and continue to pay interest in accordance with their contractual terms. Additionally, the collateralized asset value ranges exceed the value of our ARPS by approximately 300 percent. Accordingly, the remaining ARPS balance was categorized as Level 2 for fair value measurement in accordance with the authoritative guidance provided by FASB and was recorded at full par value on the unaudited condensed consolidated balance sheets as of September 30, 2014and March 31, 2014. We currently believe that the ARPS values are not impaired and as such, no impairment has been recognized against the investment. If future auctions fail to materialize and the credit rating of the issuers deteriorates, we may be required to record an impairment charge against the value of our ARPS.

Cash and cash equivalents are recognized and measured at fair value in our consolidated financial statements. Accounts receivable and prepaid expenses and other current assets are financial assets with carrying values that approximate fair value. Accounts payable and accrued expenses and other current liabilities are financial liabilities with carrying values that approximate fair value.

Our indebtedness for borrowed money and our installment payment obligations approximate fair value, as the interest rates either adjust according to the market rates or the interest rates approximate the market rates. The estimated fair value of these items was approximately $66.1 million and $51.6 million as of September 30, 2014and March 31, 2014, respectively. Our indebtedness for borrowed money, which primarily consists of loans from banks, and our installment payment obligation, which consists of the remaining deferred payment for our Acquired MCU Business, are categorized as Level 2 for fair value measurement. See Note 10, “Pension Plans” for a discussion of pension liabilities.

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Note 16 Commitments and Contingencies

6 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

16. Commitments and Contingencies

Legal Proceedings

We are currently involved in a variety of legal matters that arise in the normal course of business. Based on information currently available, management does not believe that the ultimate resolution of these matters will have a material adverse effect on our financial condition, results of operations and cash flows. Were an unfavorable ruling to occur, there exists the possibility of a material adverse impact on the results of operations of the period in which the ruling occurs.

Bank of the West

On December 6, 2013, we entered into an Amended and Restated Credit Agreement with BOTW for a revolving line of credit of $50.0 million. All amounts owed under the credit agreement are due and payable on November 30, 2015. Borrowings may be repaid and re-borrowed at any time during the term of the credit agreement. The obligations are guaranteed by two of our subsidiaries. The credit agreement includes a letter of credit subfacility, under which BOTW agrees to issue letters of credit of up to $3.0 million. However, borrowing under this subfacility is limited to the extent of availability under the $50.0 million revolving line of credit. At September 30, 2014, the outstanding principal under the credit agreement was $45.0 million. See Note 9, “Borrowing and Deferred Payment Arrangements” for further information regarding the terms of the credit agreement.

Acquired MCUBusiness Deferred Payments

We were obligated to pay $30.0 million in two installment payments of $15.0 million each as partial purchase price for the acquisition of the Acquired MCU Business. The first installment and interest were paid on June 26, 2014 and the second installment is due on December 31, 2014. See Note 3, “Business Combinations” and Note 9, “Borrowing and Deferred Payment Arrangements” for further information regarding the acquisition and the payment information.

Other Commitments and Contingencies

On occasion, we provide limited indemnification to customers against intellectual property infringement claims related to our products. To date, we have not experienced significant activity or claims related to such indemnifications. We also provide in the normal course of business indemnification to our officers, directors and selected parties. We are unable to estimate any potential future liability, if any. Therefore, no liability for these indemnification agreements has been recorded as of September 30, 2014 and March 31, 2014.

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Note 12 Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Sep. 30, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss) [Text Block]

12. Accumulated Other Comprehensive Income (Loss)

The components and the changes in accumulated other comprehensive income (loss), net of tax, for the three months ended September 30, 2014 and 2013 were as follows (in thousands):
		Foreign Currency		Unrealized Gains (Losses) on Securities		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
				(unaudited)
Balance as of March 31, 2014		$	10,535	$	325	$	(5,831)	$	5,029
Other comprehensive income (loss)
	before reclassifications		(8,100)		(638)		-		(8,738)
Net losses (gains) reclassified from
	accumulated other comprehensive
	income		-		(19)		-		(19)
Net current period other comprehensive
	income (loss)		(8,100)		(657)		-		(8,757)
Balance as of September 30, 2014		$	2,435	$	(332)	$	(5,831)	$	(3,728)

		Foreign Currency		Unrealized Gains (Losses) on Securities		Defined Benefit Pension Plans		Accumulated Other Comprehensive Income (Loss)
				(unaudited)
Balance as of March 31, 2013		$	2,982	$	60	$	(6,135)	$	(3,093)
Other comprehensive income (loss)
	before reclassifications		5,915		(35)		-		5,880
Net losses (gains) reclassified from
	accumulated other comprehensive
	income		-		(58)		-		(58)
Net current period other comprehensive
	income (loss)		5,915		(93)		-		5,822
Balance as of September 30, 2013		$	8,897	$	(33)	$	(6,135)	$	2,729

The amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended September 30, 2014 and 2013 are as follows (in thousands):
Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income								Impacted Line Item on Consolidated Income Statements
	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Net gain on investments	$	-	$	-	$	30	$	89	Other income (expense), net
Tax impact		-		-		(11)		(31)	Provision for income tax
Total reclassifications for the period	$	-	$	-	$	19	$	58	Income before income tax provision

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Note 8 Goodwill and Intangible Assets

6 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

8. Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in connection with our acquisitions. The acquisition of the Acquired MCU Business was completed on June 27, 2013 and resulted in goodwill of $25.2 million. We recorded preliminary goodwill of$2.8million related to an acquisition completed during the quarter ended June 30, 2014. The components in identified intangible assets of our company as of September 30, 2014and March 31, 2014were as follows (in thousands):

	September 30, 2014						March 31, 2014
	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets		Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(unaudited)						(unaudited)
Developed intellectual property	$	16,304	$	6,534	$	9,770	$	16,304	$	4,984	$	11,320
Customer relationships		13,020		10,137		2,883		13,020		8,695		4,325
Contract backlog		7,155		7,155		-		7,155		7,155		-
Other intangible assets		1,608		1,040		568		1,608		906		702
Total identifiable intangible assets	$	38,087	$	24,866	$	13,221	$	38,087	$	21,740	$	16,347

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Note 11 Employee Equity Incentive Plans (Option Activity) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Sep. 30, 2014		Mar. 31, 2014
Options Outstanding Intrinsic Value [Abstract]
Aggregate Intrinsic Value, Exercised	$ 1,043	[1]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Number of Shares, Exercisable	3,863,385		3,865,885
Weighted Average Exercise Price Per Share, Exercisable	$ 10.12		$ 10.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of Shares Outstanding, Beginning Balance	5,201,635
Options Granted	249,000
Options Exercised	(259,750)
Options Cancelled	(75,250)
Options Expired	(52,500)
Number of Shares Outstanding, Ending Balance	5,063,135
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Exercise Price Per Share [Abstract]
Options Outstanding	$ 10.36		$ 10.22
Options Granted	$ 11.83
Options Exercised	$ 8.63
Options Cancelled	$ 11.37
Options Expired	$ 10.74

[1] Represents the difference between the exercise price and the value of our common stock at the time of exercise.

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Note 6 Inventories

6 Months Ended

Sep. 30, 2014

Inventory Net [Abstract]

Inventory Disclosure [Text Block]

6. Inventories

Inventories consist of the following (in thousands):

	September 30,		March 31,
	2014		2014
	(unaudited)
Raw materials	$	21,458	$	19,957
Work in process		42,824		44,165
Finished goods		28,863		28,906
Total	$	93,145	$	93,028

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Note 7 Accrued Expenses and Other Current Liabilities

6 Months Ended

Sep. 30, 2014

Accrued Expenses and Other Current Liabilities [Abstract]

Accrued Expenses and Other Current Liabilities Disclosure [Text Block]

7. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

		September 30,		March 31,
		2014		2014
		(unaudited)
Uninvoiced goods and services		$	7,803	$	9,098
Compensation and benefits			7,245		6,880
Income taxes			2,291		-
Short-term installment payment obligation			15,639		30,781
Commission, royalties and other			3,396		3,407
	Total	$	36,374	$	50,166

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Note 9 Borrowing and Deferred Payment Arrangements

6 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

9.Borrowing and Deferred Payment Arrangements

Bank of the West

On December 6, 2013, we entered into an Amended and Restated Credit Agreement with Bank of the West, or BOTW, for a revolving line of credit of $50.0 million. All amounts owed under the credit agreement are due and payable on November 30, 2015. Borrowings may be repaid and re-borrowed at any time during the term of the credit agreement. The obligations are guaranteed by two of our subsidiaries. At September 30, 2014, the outstanding principal under the credit agreement was $45.0 million.

The credit agreement provides different interest rate alternatives under which we may borrow funds. We may elect to borrow based on LIBOR plus a margin, an alternative base rate plus a margin or a floating rate plus a margin. The margin can range from 0.75% to 2.5%, depending on interest rate alternatives and on our leverage of liabilities to effective tangible net worth. The effective interest rate as of September 30, 2014 was 1.95%. An unused commitment fee is also payable. It ranges from 0.25% to 0.625%, depending on leverage.

The credit agreement is subject to a set of financial covenants, including minimum effective tangible net worth, the ratio of cash, cash equivalents and accounts receivable to current liabilities, profitability, a leverage ratio and a minimum amount of U.S. domestic cash on hand. At September 30, 2014, we complied with all of these financial covenants.

The credit agreement also includes a $3.0 million letter of credit subfacility. See Note 16, “Commitments and Contingencies” for further information regarding the terms of the subfacility.

IKB Deutsche Industriebank

On June 10, 2005, IXYS Semiconductor GmbH, our German subsidiary, borrowed €10.0 million, or about $12.2 million at the time, from IKB Deutsche Industriebank. This loan is partially collateralized by a security interest in our facility in Lampertheim, Germany and is expected to be paid in full on June 30, 2020. The outstanding balance at September 30, 2014 was €3.8 million, or $4.9 million.

The interest rate on the loan is determined by adding the then effective three month Euribor rate and a margin. The margin can range from 0.7% to 1.25%, depending on the calculation of a ratio of indebtedness to cash flow for our German subsidiary. In June 2010, we entered into an interest rate swap agreement commencing June 30, 2010. The swap agreement has a fixed interest rate of 1.99% and expires on June 30, 2015. The effective interest rate on the loan as of September 30, 2014 was 2.69%.The swap is not designated as a hedge in the financial statements. See Note 4, “Fair Value” for further information regarding the derivative contract.

During each fiscal quarter, a principal payment of €167,000, or about $212,000, and a payment of accrued interest are required. Financial covenants for a ratio of indebtedness to cash flow, a ratio of equity to total assets and a minimum stockholders' equity for the German subsidiary must be satisfied for the loan to remain in good standing. The loan may be prepaid in whole or in part at the end of a fiscal quarter without penalty. At September 30, 2014, we complied with the financial covenants. The loan is partially collateralized by a security interest in the facility owned by our company in Lampertheim, Germany.

Acquired MCU Business Deferred Payments

We were obligated to pay $30.0 million in two installment payments of $15.0 millioneach as partial purchase price for the Acquired MCU Business. The first installment and interest were paid on June 26, 2014 and the second installment is due on December 31, 2014. The remaining installment bears simple interest at a variable annual rate equal to six-month LIBOR plus a 3 percentage point margin. The deferred payments and interest accruals are included in “Accrued expenses and other current liabilities” on our unaudited condensed consolidated balance sheets. The effective interest rate of the deferred payments as of September 30, 2014 was 3.33%.

Loans Assumed from Business Acquisition

We assumed loans of approximately $723,000 related to an acquisition completed during the quarter ended June 30, 2014. The assumed borrowings were non-interest loans from government agencies to support the research and development activities with maturity dates varying from fiscal 2017 to fiscal 2021, other than a loan of $99,000 that we paid off during the quarter ended September 30, 2014.

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Note 13 Computation of Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Net Income	$ 5,747	$ 3,383	$ 9,322	$ 5,362
Weighted Average Shares - Basic	31,499	31,127	31,439	31,037
Weighted Average Shares - Diluted	32,235	31,849	32,142	31,737
Net Income Per Share - Basic	$ 0.18	$ 0.11	$ 0.30	$ 0.17
Net Income Per Share - Diluted	$ 0.18	$ 0.11	$ 0.29	$ 0.17

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Note 14 Segment and Geographic Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment Reporting Information [Line Items]
Net Revenues	$ 86,435	$ 85,901	$ 174,515	$ 157,087
Power Semiconductors [Member]
Segment Reporting Information [Line Items]
Net Revenues	55,780	59,720	113,748	111,386
Integrated Circuits [Member]
Segment Reporting Information [Line Items]
Net Revenues	23,438	20,945	47,320	34,600
System and RF Power Semiconductors [Member]
Segment Reporting Information [Line Items]
Net Revenues	7,217	5,236	13,447	11,101
United States [Member]
Segment Reporting Information [Line Items]
Net Revenues	21,502	22,526	44,006	44,084
France [Member] | Europe and Middle East [Member]
Segment Reporting Information [Line Items]
Net Revenues	1,897	1,329	3,749	2,632
Germany [Member] | Europe and Middle East [Member]
Segment Reporting Information [Line Items]
Net Revenues	8,026	9,509	16,475	17,162
Italy [Member] | Europe and Middle East [Member]
Segment Reporting Information [Line Items]
Net Revenues	909	1,021	2,382	1,994
Russia [Member] | Europe and Middle East [Member]
Segment Reporting Information [Line Items]
Net Revenues	2,157	899	2,860	1,380
Sweden [Member] | Europe and Middle East [Member]
Segment Reporting Information [Line Items]
Net Revenues	1,309	1,288	2,594	2,668
Switzerland [Member] | Europe and Middle East [Member]
Segment Reporting Information [Line Items]
Net Revenues	853	1,077	1,671	2,114
United Kingdom [Member] | Europe and Middle East [Member]
Segment Reporting Information [Line Items]
Net Revenues	5,822	5,411	11,201	10,747
China [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net Revenues	20,480	20,267	40,882	34,941
Japan [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net Revenues	2,161	1,701	3,962	3,406
Korea [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net Revenues	5,689	5,440	12,128	7,304
Malaysia [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net Revenues	1,490	920	3,122	1,623
Singapore [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net Revenues	2,913	3,151	6,070	5,744
India [Member] | Rest Of World [Member]
Segment Reporting Information [Line Items]
Net Revenues	1,380	1,199	2,629	2,547
Other Geographic Regions [Member] | Europe and Middle East [Member]
Segment Reporting Information [Line Items]
Net Revenues	5,957	6,046	12,223	11,802
Other Geographic Regions [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net Revenues	2,685	2,590	5,843	4,089
Other Geographic Regions [Member] | Rest Of World [Member]
Segment Reporting Information [Line Items]
Net Revenues	$ 1,205	$ 1,527	$ 2,718	$ 2,850

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Note 13 Computation of Earnings Per Share (Narratives) (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Weighted Average Number Diluted Shares Outstanding Adjustment	736,000	722,000	703,000	700,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,318,679	2,761,044	2,507,755	2,663,782

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Note 6 Inventories (Tables)

6 Months Ended

Sep. 30, 2014

Inventory Net [Abstract]

Schedule of Inventory, Current [Table Text Block]

	September 30,		March 31,
	2014		2014
	(unaudited)
Raw materials	$	21,458	$	19,957
Work in process		42,824		44,165
Finished goods		28,863		28,906
Total	$	93,145	$	93,028

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Note 8 Goodwill and Intangible Assets (Narratives) (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended	3 Months Ended
	Jun. 27, 2013 MCU Business [Member]	Sep. 30, 2014 Other Acquisition [Member]
Goodwill and Intangible Assets Details [Line Items]
Goodwill, Acquired During Period	$ 25,164	$ 2,800

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Note 14 Segment and Geographic Information

6 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

14. Segment and Geographic Information

We have a single operating segment. This operating segment is comprised of semiconductor products used primarily in power-related applications. While we have separate legal subsidiaries with discrete financial information, we have one chief operating decision maker with highly integrated businesses. Our net revenues by major geographic area (based on destination) were as follows (in thousands):

		Three Months Ended				Six Months Ended
		September 30,				September 30,
			2014		2013	2014		2013
		(unaudited)				(unaudited)
United States		$	21,502	$	22,526	$	44,006	$	44,084
Europe and the Middle East
	France		1,897		1,329		3,749		2,632
	Germany		8,026		9,509		16,475		17,162
	Italy		909		1,021		2,382		1,994
	Russia		2,157		899		2,860		1,380
	Sweden		1,309		1,288		2,594		2,668
	Switzerland		853		1,077		1,671		2,114
	United Kingdom		5,822		5,411		11,201		10,747
	Other		5,957		6,046		12,223		11,802
Asia Pacific
	China		20,480		20,267		40,882		34,941
	Japan		2,161		1,701		3,962		3,406
	Korea		5,689		5,440		12,128		7,304
	Malaysia		1,490		920		3,122		1,623
	Singapore		2,913		3,151		6,070		5,744
	Other		2,685		2,590		5,843		4,089
Rest of the World
	India		1,380		1,199		2,629		2,547
	Other		1,205		1,527		2,718		2,850
Total		$	86,435	$	85,901	$	174,515	$	157,087

The following table sets forth net revenues for each of our product groups for the three and six months ended September 30, 2014 and 2013 (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
		2014		2013		2014		2013
		(unaudited)				(unaudited)
Power semiconductors	$	55,780	$	59,720	$	113,748	$	111,386
Integrated circuits		23,438		20,945		47,320		34,600
Systems and RF power semiconductors		7,217		5,236		13,447		11,101
Total	$	86,435	$	85,901	$	174,515	$	157,087

For the three and six months ended September 30, 2014, a distributor accounted for 11.4% and 10.9% of our net revenues, respectively. For the six months ended September 30, 2013, this distributor accounted for 10.6% of our net revenues. For the three and six months ended September 30, 2013, another distributor accounted for 12.1% and 12.5% of our net revenues, respectively.

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Fair Value (Policy)

6 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments, Policy [Policy Text Block]

We account for certain assets and liabilities at fair value. In determining fair value, we consider its principal or most advantageous market and the assumptions that market participants would use when pricing, such as inherent risk, restrictions on sale and risk of non-performance. The fair value hierarchy is based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy:

Level 1 — Quoted prices for identical instruments in active markets.

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.

Level 3 — Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.

We measure our marketable securities and derivative contracts at fair value. Marketable securities are valued using the quoted market prices and are therefore classified as Level 1 estimates.

From time to time, we use derivative instruments to manage exposure to changes in interest rates and currency exchange rates, and the fair values of these instruments are recorded on the balance sheets. We have elected not to designate these instruments as accounting hedges. The changes in the fair value of these instruments are recorded in the current period's statement of operations and are included in other income (expense), net. All of our derivative instruments are traded on over-the-counter markets where quoted market prices are not readily available. For those derivatives, we measure fair value using prices obtained from the counterparties with whom we have traded. The counterparties price the derivatives based on models that use primarily market observable inputs, such as yield curves and option volatilities. Accordingly, we classify these derivatives as Level 2.

Auction rate preferred securities, or ARPS, are stated at par value based upon observable inputs including historical redemptions received from the ARPS issuers.

Cash and cash equivalents are recognized and measured at fair value in our consolidated financial statements. Accounts receivable and prepaid expenses and other current assets are financial assets with carrying values that approximate fair value. Accounts payable and accrued expenses and other current liabilities are financial liabilities with carrying values that approximate fair value.

Our indebtedness for borrowed money and our installment payment obligations approximate fair value, as the interest rates either adjust according to the market rates or the interest rates approximate the market rates.

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Note 6 Inventories (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Mar. 31, 2014
Inventory Net [Abstract]
Raw Materials	$ 21,458	$ 19,957
Work in Process	42,824	44,165
Finished Goods	28,863	28,906
Inventory Net, Total	$ 93,145	$ 93,028

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Note 14 Segment and Geographic Information (Tables)

6 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Schedule of Revenue from External Customers by Geographic Area [Table Text Block]

		Three Months Ended				Six Months Ended
		September 30,				September 30,
			2014		2013	2014		2013
		(unaudited)				(unaudited)
United States		$	21,502	$	22,526	$	44,006	$	44,084
Europe and the Middle East
	France		1,897		1,329		3,749		2,632
	Germany		8,026		9,509		16,475		17,162
	Italy		909		1,021		2,382		1,994
	Russia		2,157		899		2,860		1,380
	Sweden		1,309		1,288		2,594		2,668
	Switzerland		853		1,077		1,671		2,114
	United Kingdom		5,822		5,411		11,201		10,747
	Other		5,957		6,046		12,223		11,802
Asia Pacific
	China		20,480		20,267		40,882		34,941
	Japan		2,161		1,701		3,962		3,406
	Korea		5,689		5,440		12,128		7,304
	Malaysia		1,490		920		3,122		1,623
	Singapore		2,913		3,151		6,070		5,744
	Other		2,685		2,590		5,843		4,089
Rest of the World
	India		1,380		1,199		2,629		2,547
	Other		1,205		1,527		2,718		2,850
Total		$	86,435	$	85,901	$	174,515	$	157,087

Revenue from External Customers by Products and Services [Table Text Block]

	Three Months Ended September 30,				Six Months Ended September 30,
		2014		2013		2014		2013
		(unaudited)				(unaudited)
Power semiconductors	$	55,780	$	59,720	$	113,748	$	111,386
Integrated circuits		23,438		20,945		47,320		34,600
Systems and RF power semiconductors		7,217		5,236		13,447		11,101
Total	$	86,435	$	85,901	$	174,515	$	157,087

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Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Income and Comprehensive Income [Abstract]
Net Income	$ 5,747	$ 3,383	$ 9,322	$ 5,362
Foreign currency translation adjustments	(7,820)	4,559	(8,100)	5,915
Changes in unrealized gain (loss), net of tax benefits of $(188) and $(342) for the three and six months ended September 30, 2014 and net of tax expense (benefit) of $134 and $(18) for the three and six months ended September 30, 2013	(350)	250	(638)	(35)
Reclassification adjustment for net gains realized in net income, net of tax expense (benefit) of $0 and $(11) for the three and six months ended September 30, 2014 and net of tax expense (benefit) of $0 and $(31) for the three and six months ended September 30, 2013	0	0	(19)	(58)
Net change in market value of investments	(350)	250	(657)	(93)
Total comprehensive income (loss)	$ (2,423)	$ 8,192	$ 565	$ 11,184

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Note 3 Business Combinations

6 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

3. Business Combinations

Acquired MCU Business

On June 27, 2013, we completed the acquisition of an 8-bit microcontroller product line, or the Acquired MCU Business, from the System LSI Division of Samsung Electronics Co., Ltd. The acquired product line includes microcontrollers potentially useful in a number of applications, which have to date been principally used in consumer product applications. The acquisition was intended to bolster our product portfolio and empower customers to utilize products from across our multiple product lines.

The aggregate purchase price for the acquired assets was $50.0 million. The closing payment was $20.0 million and we were obligated to pay $30.0 million in two installment payments of $15.0 million each. The first installment and interest were paid on June 26, 2014 and the second installment is due on December 31, 2014. The remaining installment bears simple interest at a variable annual rate equal to six-month LIBOR plus a 3 percentage point margin. The deferred payments and interest are included in “Accrued expenses and other current liabilities” on our unaudited condensed consolidated balance sheets.

We incurred $403,000 in legal and consulting costs related to the acquisition in fiscal 2014. The costs incurred were fully expensed and included in “Selling, general and administrative expenses”, or SG&A expenses, on our unaudited condensed consolidated statements of operations.

The following table summarizes the values of the assets acquired at the acquisition date (in thousands):

		Purchase Price Allocation
		(unaudited)
Inventories		$	800
Property, plant and equipment			36
Identifiable intangible assets			24,000
	Total identifiable net assets		24,836
Goodwill			25,164
	Total purchase price	$	50,000

Identifiable intangible assets consisted of developed intellectual property, customer relationships, contract backlog and anon-competition agreement. The valuation of the acquired intangibles was classified as a Level 3 measurement under the fair value measurement guidance, because the valuation was based on significant unobservable inputs and involved management judgment and assumptions about market participants and pricing. In determining fair value of the acquired intangible assets, we determined the appropriate unit of measure, the exit market and the highest and best use for the assets. The income approach and cost approach were used to estimate the fair value. The income approach indicates the fair value of an asset based on the value of the cash flows that the asset can be expected to generate in the future through a discounted cash flow method. The income approach was used to determine the fair values of developed intellectual property, the non-competition agreement, contract backlog and customer relationships. The goodwill arising from the acquisition was largely attributable to the synergies expected to be realized after our acquisition and integration of the Acquired MCU Business. The goodwill is not deductible for tax purposes.

Identified intangible assets resulting from the acquisition based on our valuation consisted of the following (in thousands):

					Estimated
		Fair Value		Amortization	Useful Life
		(In thousands)		Method	(In months)
				(unaudited)
Developed intellectual property		$	11,504	Straight-line	60
Customer relationships			6,920	Accelerated	36
Contract backlog			5,155	Straight-line	9
Non-competition agreement			421	Straight-line	60
	Total	$	24,000

Supplemental Pro Forma Financial Information:

The following pro forma summary gives effect to the acquisition of the Acquired MCU Business as if it had occurred at the beginning of fiscal 2013. The pro forma financial information reflects the business combination accounting effects resulting from this acquisition including our amortization charges from acquired intangible assets, the acquisition related expenses and the interest expenses on deferred payments of the acquisition. The summary is provided for illustrative purposes only and is not necessarily indicative of the consolidated results of operations for future periods.

The Acquired MCU Business's fiscal year ended on December 31, while our fiscal year ends on March 31. As such, the financial information of the Acquired MCU Business is included in the following unaudited pro forma table so as to align with the reporting periods of our fiscal quarters. In the following unaudited pro forma table, the financial information for the three months ended September 30, 2013 includes the historical financial results of IXYS Corporation for the three months ended September 30, 2013; the financial information for the six months ended September 30, 2013 includes the historical financial results of IXYS Corporation for the six months ended September 30, 2013 and the historical financial results of the Acquired MCU Business for the three months ended March 31, 2013 (in thousands, except per share data):

	Three Months Ended		Six Months Ended
	September 30, 2013		September 30, 2013
	(unaudited)		(unaudited)
Pro forma net revenues	$	85,901	$	180,985
Pro forma net income	$	5,721	$	10,156
Pro forma net income per share (basic)	$	0.18	$	0.33
Pro forma net income per share (diluted)	$	0.18	$	0.32

Other Acquisition

In the quarter ended June 30, 2014, we completed an acquisition for a cash consideration of $2.3 million, net of cash acquired. The acquisition resulted in $2.8 million of goodwill and we assumed debt of $723,000. During the quarter ended September 30, 2014, we increased the goodwill by $17,000 due to changes in net value of acquired assets. The goodwill balance as of September 30, 2014 reflected a reduction of$196,000caused by changes in the foreign exchange translation rate. This acquisition was not significant to our unaudited condensed consolidated financial statements for the current period.

As of September 30, 2014, we had not yet finalized the valuation of the deferred tax assets in connection with this acquisition. The finalization of these amounts is not expected to have a material effect on our consolidated financial position.

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Note 11 Employee Equity Incentive Plans (Allocated Share-based Compensation Expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended				12 Months Ended
	Sep. 30, 2014		Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013		Mar. 31, 2015	Mar. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based Compensation Effect in Income before Taxes	$ 697		$ 670		$ 1,378		$ 1,341
Provision for Income Taxes	244	[1]	208	[1]	482	[1]	416	[1]
Net Stock-based Compensation Effects on Net Income	453		462		896		925
Estimated Statutory Income Tax Rate									35.00%	31.00%
Cost of Goods Sold [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based Compensation Effect in Income before Taxes	102		83		210		249
Research, Development and Engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based Compensation Effect in Income before Taxes	189		248		378		456
Selling, General and Administrative Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based Compensation Effect in Income before Taxes	$ 406		$ 339		$ 790		$ 636

[1] Calculated at the U.S. statutory federal income tax rate of 35% in fiscal 2015 and an estimated income tax rate of 31% in fiscal 2014.

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Pension Plans (Policy)

6 Months Ended

Sep. 30, 2014

Pension and Other Postretirement Benefits Disclosure [Abstract]

Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block]

We maintain three defined benefit pension plans: one for United Kingdom employees, one forGerman employees, and one for Philippine employees. We deposit funds for these plans, consistent with the requirements of local law, with investment management companies, insurance companies, banks or trustees and accrue for the unfunded portion of the obligations. The measurement date for the projected benefit obligations and the plan assets is March 31. The United Kingdom and German plans have been curtailed. As such, the plans are closed to new entrants and no credit is provided for additional periods of service. The German plan was held by a separate legal entity.

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Note 11 Employee Equity Incentive Plans (Tables)

6 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

		Three Months Ended September 30,				Six Months Ended September 30,
Statement of Operations Classifications			2014		2013		2014		2013
		(unaudited)				(unaudited)
Cost of goods sold		$	102	$	83	$	210	$	249
Research, development and engineering			189		248		378		456
Selling, general and administrative expenses			406		339		790		636
Stock-based compensation effect in income before taxes			697		670		1,378		1,341
Provision for income taxes (1)			244		208		482		416
Net stock-based compensation effects in net income		$	453	$	462	$	896	$	925
________________
(1)	Calculated at the U.S. statutory federal income tax rate of 35% in fiscal 2015 and an estimated income tax rate of 31% in fiscal 2014.

Schedule of Employee Service Share-based Compensation, Fair Value Assumptions and Methodology [Table Text Block]

		Stock Options								Purchase Plan (1)
		Three Months Ended September 30,				Six Months Ended September 30,				Six Months Ended September 30,
			2014		2013		2014		2013		2014		2013
Weighted average estimated fair
	value of grant per share	$	5.54	$	4.95	$	5.54	$	4.95	$	2.90	$	2.60
Risk-free interest rate			1.8%		1.9%		1.8%		1.9%		0.1%		0.1%
Expected term in years			6.25		6.07		6.25		6.07		0.5		0.5
Volatility			52.2%		55.5%		52.2%		55.5%		34.5%		38.5%
Dividend yield			1.0%		0%		1.0%		0%		1.06%		0%
(1)	Under the stock purchase plan, rights to purchase shares are only granted during the first and third quarters of each fiscal year.

Schedule of Share-based Compensation, Stock Options Activity [Table Text Block]

			Weighted Average
		Number of	Exercise Price			Intrinsic Value (1)
		Shares	Per Share
			(unaudited)
						(000)
Balance at March 31, 2014		5,201,635	$	10.22
	Options granted	249,000	$	11.83
	Options exercised	(259,750)	$	8.63	$	1,043
	Options cancelled	(75,250)	$	11.37
	Options expired	(52,500)	$	10.74
Balance at September 30, 2014		5,063,135	$	10.36
Exercisable at September 30, 2014		3,863,385	$	10.12
Exercisable at March 31, 2014		3,865,885	$	10.00
(1)	Represents the difference between the exercise price and the value of our common stock at the time of exercise.

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Note 13 Computation of Earnings Per Share

6 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

13. Computation of Earnings per Share

Basic and diluted earnings per share are calculated as follows (in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
		September 30,				September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Net income	$	5,747	$	3,383	$	9,322	$	5,362
Weighted average shares - basic		31,499		31,127		31,439		31,037
Weighted average shares - diluted		32,235		31,849		32,142		31,737
Net income per share - basic	$	0.18	$	0.11	$	0.30	$	0.17
Net income per share - diluted	$	0.18	$	0.11	$	0.29	$	0.17

Diluted weighted average shares includes approximately 736,000 and 722,000common equivalent shares from stock options for the three months ended September 30, 2014 and 2013, and approximately 703,000 and 700,000common equivalent shares from stock options for the six months endedSeptember 30,2014 and 2013.

Basic net income available per common share is computed using net income and the weighted average number of common shares outstandingduring the period. Diluted net income per common share is computed using net income and the weighted average number of common shares outstanding, assuming dilution, which includes potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of restricted stock units using the treasury stock method. During the three and six months endedSeptember 30, 2014, there were outstanding weighted average options to purchase 2,318,679and 2,507,755shares, respectively, that were not included in the computation of diluted net income per share since the exercise prices of the options exceeded the market price of the common stock. During the three and six months ended September 30, 2013, there were outstanding weighted average options to purchase 2,761,044and 2,663,782 shares, respectively, that were not included in the computation of diluted net income per share since the exercise prices of the options exceeded the market price of the common stock. These options could dilute earnings per share in future periodsif the market price of the common stock increases.