IXYS Corporation (Form: 8-K)

IXYS Reports Twelve Consecutive Quarters Of Revenue Growth
And Record Profits

Santa Clara, CA. February 7, 2005 — IXYS Corporation (NASDAQ:SYXI) today reported net revenues of $66.3 million for the quarter ended December 31, 2004, which is an increase of 30.6% over the $50.7 million in net revenues for the same quarter in the prior fiscal year.

For the nine months ended December 31, 2004, IXYS reported net revenues of $187.6 million, which was a 40.2% increase as compared to $133.8 million in net revenues for the same nine-month period in the prior fiscal year.

“We are pleased to demonstrate twelve consecutive quarters of revenue growth and ten consecutive quarters of record revenues, especially given the current market conditions in the semiconductor industry. IXYS demonstrates again its unique position in the market, especially in the power and mixed signal spaces. More importantly, we have achieved a profit milestone in showing our highest quarterly net income of $4.7 million in the December quarter. We ended the December quarter with $79 million in backlog, which is our second highest quarterly backlog. Net income for the nine months ended December 2004 increased by about 1,350% over last year’s comparable period,” said Dr. Nathan Zommer, Chief Executive Officer of IXYS.

Gross profit was $20.1 million, or 30.3% of net revenues, for the quarter ended December 31, 2004. This represents a 66.5% increase over gross profit of $12.0 million, or 23.7% percent of net revenues, for the same quarter in the prior fiscal year.

For the nine-month period ending December 31, 2004, gross profit was $56.7 million, or 30.2% of net revenues. This represents a 59.3% increase in gross profit from $35.6 million, or 26.6% of net revenues, for the same nine-month period of the prior fiscal year.

Net income in the quarter ended December 31, 2004 was $4.7 million ($0.14 per share, diluted), as compared to a net income of $386,000 ($0.01 per share, diluted) in the quarter ended December 31, 2003.

For the nine-month period ended December 31, 2004, net income was $10.5 million ($0.30 per share, diluted), as compared to net income of $721,000 ($0.02 per share, diluted) in the same nine-month period of the prior fiscal year.

Uzi Sasson, Chief Financial Officer of IXYS, said, “Despite being historically weak in the December quarter, we have increased our net revenues on the strength of our increasing penetration into the consumer products market. We also continued to increase our cash position, even though we paid off our bank debt. For the March quarter, we expect our net revenues to be relatively flat as compared to our December quarter net revenues.”

Mr. Sasson added, “In looking at our internal controls as part of the quarter end, we have concluded that we have control deficiencies that, when all taken together, represent a material weakness in internal control over financial reporting. It is clear that we face a considerable challenge to achieve favorable results in management’s assessment and the auditor’s attestation of our internal control over financial reporting that will occur as of March 31, 2005. We will be working hard over the next few months to meet the challenge, but there is no assurance that we will get there.”

IXYS develops and markets primarily high performance power semiconductor and control ICs that are used in controlling and converting electrical power efficiently in power systems for telecommunication infrastructure, motor drives, medical systems and transportation. IXYS also serves emerging markets with a combination of digital and analog integrated circuits to control flat panel displays, medical instruments and telecommunications products.

The foregoing press release contains forward-looking statements. Forward looking statements include those regarding backlog, our revenue growth, our expectations for revenues in the March quarter and our statements regarding the assessment and attestation of our internal control over financial reporting. Actual results may vary materially from those contained in the forward-looking statements, due to unanticipated adverse variations in demand for our products, the cancellation of orders, unexpected technical challenges, difficulties in marketing and selling our products and delays or disruptions in the manufacture of our products. Further information on other risks that could affect IXYS is detailed and included in IXYS’ 10-Q for the fiscal quarter ended September 30, 2004, as filed with the Securities and Exchange Commission. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements.

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


IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
	December 31,			March 31,
	2004			2004
ASSETS
Current assets:
Cash and cash equivalents	$	51,138		$	43,199
Accounts receivable, net		38,909			33,131
Inventories, net		54,754			48,055
Prepaid expenses and other current assets		15,259			1,710
Deferred income taxes		7,595			7,769

Total current assets		167,655			133,864
Plant and equipment, net		26,329			26,369
Other assets		27,370			28,533
Deferred income taxes		10,015			9,503

Total assets	$	231,369		$	198,269

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of capitalized lease obligations	$	2,786		$	3,447
Current portion of notes payable to bank		0			800
Accounts payable		11,986			15,277
Accrued expenses and other current liabilities		39,335			18,094

Total current liabilities		54,107			37,618
Capitalized lease and other long term obligations, net of current portion		2,465			3,061
Pension liabilities		13,806			12,059

Total liabilities		70,378			52,738

Common stock		332			331
Additional paid-in capital		151,829			150,617
Notes receivable from stockholders		(749	)		(1,388	)
Retained earnings		(299	)		(10,750	)
Accumulated other comprehensive income		9,878			6,721

Stockholders’ equity		160,991			145,531

Total liabilities and stockholders’ equity	$	231,369		$	198,269


IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2004		2003		2004		2003
Net revenues	$	66,258	$	50,744	$	187,597	$	133,766
Cost of goods sold		46,203		38,699		130,857		98,143

Gross profit		20,055		12,045		56,740		35,623

Operating expenses:
Research, development and engineering		4,778		4,023		14,400		11,912
Selling, general and administrative		8,226		7,518		25,753		22,693

Total operating expenses		13,004		11,541		40,153		34,605

Operating income		7,051		504		16,587		1,018
Other income, net		488		90		269		101

Income before income tax provision		7,539		594		16,856		1,119
Provision for income tax expense (benefit)		2,790		208		6,405		398

Net income	$	4,749	$	386	$	10,451	$	721

Net income per share — basic	$	0.14	$	0.01	$	0.32	$	0.02

Weighted average shares used in per share calculation — basic		33,076		32,772		33,029		32,289

Net income per share — diluted	$	0.14	$	0.01	$	0.30	$	0.02

Weighted average shares used in per share calculation — diluted		35,012		34,860		34,876		34,321


Delaware	000-26124	77-0140882
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

3540 Bassett Street, Santa Clara, California		95054
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	IXYS Corporation

February 7, 2005	By:	/s/ Uzi Sasson

		Name: Uzi Sasson
		Title: Vice President of Finance and Chief Financial Officer


Exhibit No.		Description

99.1		Text of Press Release issued by IXYS Corporation, dated February 7, 2005


Date of Report (Date of Earliest Event Reported):		February 7, 2005


Registrant’s telephone number, including area code:		408-982-0700


Contact:		Uzi Sasson Vice President, Finance & CFO IXYS Corporation 3540 Bassett Street Santa Clara, California 95054