SYXI Ixys

IXYS Corporation (NASDAQ:SYXI) today announced that, for the fourth fiscal quarter ended March 31, 2006, IXYS reported net revenues of $64.4 million, as compared with net revenues of $69.0 million for the same period in the prior fiscal year. Gross profit was $20.4 million, or 31.6% of net revenues, for the quarter ended March 31, 2006, as compared to gross profit of $23.2 million, or 33.6% of net revenues, for the same quarter in the prior fiscal year. Net income for the quarter ended March 31, 2006, was $30.3 million, or $0.85 per diluted share, as compared to $5.8 million, or $0.16 per diluted share, for the same quarter in the prior fiscal year. Excluding the impact of a litigation provision credit adjustment of $8.7 million related to the litigation involving LoJack Corporation and other non-recurring adjustments to related deferred tax assets made in the quarter ended March 31, 2006, net income for the quarter ended March 31, 2006 would have been $5.4 million, or $0.15 per diluted share. For the fiscal year ended March 31, 2006, IXYS reported net revenues of $251.5 million, as compared with net revenues of $256.6 million for the prior fiscal year. Gross profit for the fiscal year ended March 31, 2006 was $81.7 million, or 32.5% of net revenues, as compared to gross profit of $79.9 million, or 31.1% of net revenues, for the prior fiscal year. Net loss for the fiscal year ended March 31, 2006, was $6.1 million, or $0.18 loss per diluted share, as compared to net income of $16.2 million, or $0.46 per diluted share, for the prior fiscal year. Excluding the impact of the litigation provision charge of $42.8 million and other non-recurring adjustments to deferred tax assets made in the quarter ended March 31, 2006, net income for the year ended March 31, 2006 would have been $20.5 million, or $0.57 per diluted share. "Consistent with our long term growth plan, we are pleased to return to sequential quarterly revenue growth, from $60.3 million in the December, 2005 quarter to $64.4 million in the March, 2006 quarter. IXYS has demonstrated a tripling of its revenues in the last four fiscal years. Our cash grew last year, even with the purchase of a record number of our own shares and buying two of our facilities, and, at March 31, 2006, was $78.5 million. During the past fiscal year, we harvested the benefits of our product diversification and investments in new products. We strengthened our Board of Directors, invested in our worldwide corporate infrastructure and in our technology, and expanded our manufacturing capacities. We continue to focus on growing our revenues and improving our gross margins," said Dr. Nathan Zommer, Chief Executive Officer. Uzi Sasson, Chief Financial Officer, said, "Consistent with our seasonal expectations, we project our revenues for the June 2006 quarter to be between $65 million and $67 million." IXYS develops and markets primarily high performance power and RF semiconductors and control ICs that are used in controlling and converting electrical power efficiently in power systems for telecommunication infrastructure, motor drives, medical systems and transportation. IXYS also serves emerging markets with digital and analog ICs that control flat panel displays, medical instruments and telecommunication products. Non-GAAP Financial Information Included above and within the attached schedules are certain non-GAAP financial figures. Management believes non-GAAP net income (loss) and non-GAAP net income (loss) per share are useful measures of operating performance because they exclude the impact of the litigation provision related to the LoJack litigation and the impact of various adjustments to deferred tax assets, which are in the nature of one-time events. However, these non-GAAP measures should be considered in addition to, not as a substitute for, or superior to net (loss) income and net (loss) income per share, or other financial measures prepared in accordance with GAAP. Safe Harbor Statement The foregoing press release contains forward-looking statements, including those related to revenue growth, improvement of gross margins and our projection of revenues for the June 2006 quarter. Actual results may vary materially from those contained in the forward-looking statements, due to changes in customer delivery schedules, the cancellation of orders, an unanticipated decline in our business, an unexpected increase or leveling of our costs or reduced cash flows, among other things. Further information on other factors that could affect IXYS is detailed and included in IXYS' Form 10-Q for the fiscal quarter ended December 31, 2005, as filed with the Securities and Exchange Commission. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements. Additional information may be obtained by visiting IXYS' website at http://www.ixys.com, or by contacting the company directly. -0- *T IXYS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31, March 31, 2006 2005 --------- --------- ASSETS Current assets: Cash and cash equivalents $78,505 $58,299 Accounts receivable, net 42,774 41,388 Other receivables 1,433 - Inventories, net 60,357 51,411 Prepaid expenses and other current assets 2,688 4,134 Deferred income taxes 25,049 6,649 --------- --------- Total current assets 210,806 161,881 Plant and equipment, net 40,049 27,814 Other assets 12,580 27,409 Deferred income taxes 16,552 2,787 --------- --------- Total assets $279,987 $219,891 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of capitalized lease obligations $2,255 $2,733 Current portion of notes payable to bank 973 - Accounts payable 20,259 12,962 Accrued expenses and other current liabilities 68,504 22,123 --------- --------- Total current liabilities 91,991 37,818 Capitalized lease and other long term obligations, net of current portion 14,447 4,566 Pension liabilities 13,576 12,230 --------- --------- Total liabilities 120,014 54,614 --------- --------- Common stock 347 336 Additional paid-in capital 156,664 151,820 Notes receivable from stockholders (59) (355) Retained earnings (614) 5,492 Accumulated other comprehensive income 3,635 7,984 --------- --------- Stockholders' equity 159,973 165,277 --------- --------- Total liabilities and stockholders' equity $279,987 $219,891 ========= ========= IXYS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Twelve Months Ended March 31, March 31, ------------------ --------------------- 2006 2005 2006 2005 ----------------- --------------------- Net revenues $64,425 $69,023 $251,487 $256,620 Cost of goods sold 44,043 45,854 169,792 176,710 ----------------- --------------------- Gross profit 20,382 23,169 81,695 79,910 ----------------- --------------------- Operating expenses: Research, development and engineering 4,324 4,174 17,523 18,574 Selling, general and administrative 10,502 9,952 38,371 35,707 Litigation provision (8,690) - 42,810 - ----------------- --------------------- Total operating expenses 6,136 14,126 98,704 54,281 ----------------- --------------------- Operating income (loss) 14,246 9,043 (17,009) 25,629 Other income (expense), net 2,040 (120) 3,992 152 ----------------- --------------------- Income (loss) before income tax provision 16,286 8,923 (13,017) 25,781 (Benefit) provision for income tax expense (14,015) 3,134 (6,911) 9,539 ----------------- --------------------- Net income (loss) $30,301 $5,789 ($6,106) $16,242 ================= ===================== Net income (loss) per share - basic $0.89 $0.17 ($0.18) $0.49 ================= ===================== Weighted average shares used in per share calculation - basic 34,015 33,034 33,636 33,093 ================= ===================== Net income (loss) per share - diluted $0.85 $0.16 ($0.18) $0.46 ================= ===================== Weighted average shares used in per share calculation - diluted 35,792 35,297 33,636 35,085 ================= ===================== GAAP reconciliation to non-GAAP (In thousands, except per share amounts) Quarter Ended Year Ended March 31, March 31, 2006 2005 2006 2005 -------- ------- -------- -------- Net (loss) income, as reported (GAAP) $30,301 $5,789 $(6,106) $16,242 Adjustments to GAAP net income (loss): - - Litigation provision (8,690) - 42,810 - Deferred tax assets recognized on LoJack litigation provision and other non-recurring items (16,193) - (16,193) - -------- ------- -------- -------- Non-GAAP net income $5,418 $5,789 $20,511 $16,242 ======== ======= ======== ======== Net income (loss) per share - basic, as reported (GAAP) $0.89 $0.17 $(0.18) $0.49 Adjustments to GAAP net income (loss) per share - basic: Litigation provision (0.25) - 1.27 - Deferred tax assets recognized on LoJack litigation provision and other non-recurring items (0.48) - (0.48) - -------- ------- -------- -------- Net income per share - basic, (non- GAAP) $0.16 $0.17 $0.61 $0.49 ======== ======= ======== ======== Net income (loss) per share - diluted, as reported (GAAP) $0.85 $0.16 $(0.18) $0.46 Adjustments to GAAP net income (loss) per share - diluted: Litigation provision (0.25) - 1.20 - Deferred tax assets recognized on LoJack litigation provision and other non-recurring items (0.45) - (0.45) - -------- ------- -------- -------- Net income per share - diluted, (non-GAAP) $0.15 $0.16 $0.57 $0.46 ======== ======= ======== ======== Weighted average shares used in per share calculation Basic 34,015 33,034 33,636 33,093 Dilutive weighted average share 1,777 2,263 2,180 1,992 -------- ------- -------- -------- Diluted 35,792 35,297 35,816 35,085 *T