10-22-13 4:05 PM EDT | Email Article
http://media.marketwire.com/attachments/201106/75573_newlogo.jpg http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=1061626&ProfileId=051205&sourceType=1

SUNNYVALE, CA -- (Marketwired) -- 10/22/13 -- Supertex, Inc. (NASDAQ: SUPX)

  • Q2 sales of $17.7 million, 10% higher sequentially and 12% higher year over year
  • Q2 GAAP EPS of $0.24 representing a $0.01 decrease from Q1 in which EPS included an $0.08 favorable discrete tax item, and an $0.18 increase compared to Q2 last year
  • Q2 gross margin of 57% compared to 54% in Q1 and 46% in Q2 of last year
  • Q3 sales expected to be flat to down 5% sequentially

Supertex, Inc. (NASDAQ: SUPX), a leader in high voltage mixed signal semiconductors, today reported financial results for the second fiscal quarter ended September 28, 2013. Net sales for the second fiscal quarter were $17,749,000, a 10% increase compared to the prior quarter of $16,198,000 and a 12% increase compared to $15,919,000 in the same quarter last year. On a GAAP basis, net income in the second fiscal quarter was $2,733,000 or $0.24 per diluted share, as compared with $2,886,000 or $0.25 per diluted share in the prior fiscal quarter, and $690,000 or $0.06 per diluted share in the same quarter of the prior fiscal year. Our 2014 first fiscal quarter net income reflected a $0.03 tax benefit resulting from an $0.08 favorable discrete tax item.

For the six months ended September 28, 2013, net sales were $33,947,000, a 6% increase compared to $31,978,000 for the same period of the prior fiscal year, and on a GAAP basis, net income was $5,619,000, or $0.48 per diluted share, a 337% increase as compared with $1,287,000, or $0.11 per diluted share, in the same period of the prior fiscal year.

Non-GAAP earnings per diluted share for the second quarter of fiscal 2014 were $0.30, excluding pre-tax employee stock-based compensation of $705,000, compared with $0.30 in the prior quarter, excluding pre-tax employee stock-based compensation of $643,000, and $0.12 in the same quarter of the prior fiscal year, excluding pretax employee stock-based compensation of $769,000. For the six months ended September 28, 2013, non-GAAP earnings per diluted share were $0.60, excluding pre-tax employee stock-based compensation of $1,348,000, as compared to $0.23 for the same period of the prior fiscal year, excluding pre-tax employee stock-based compensation of $1,514,000.

Overall sales grew 10% sequentially. Medical electronics product sales increased 20%. LED backlighting and general lighting driver sales grew 24%, with most of the growth occurring in LED drivers for backlighting LCD TVs and high end LCD monitors. Sales to the Printers/EL market as a whole were 3.5% lower, with new printer head driver sales for ceramics and textiles increasing 16% and EL sales decreasing 27%. Industrial/other product sales increased 11%, in part due to increased shipments of a product for an audio application.

Second fiscal quarter gross margin was 57%, a 340 basis point sequential increase driven by higher sales and increased capacity utilization. Operating expense increased by $580,000, or 9%. Income tax rate was 26%, or $943,000, compared to a tax benefit of $314,000 in the prior quarter which had included the benefit resulting from the expiration of statutes of limitations on uncertain tax positions of $949,000. Cash flow generated from operating activities was $2.0 million, sequentially lower by $1.8 million, primarily due to higher tax payments and inventory increase. During the second fiscal quarter we repurchased approximately 147,000 shares of our stock for $3.5 million.

Second Fiscal Quarter Recap

"We had another strong quarter with sequential sales growth and improved operating performance," stated Dr. Henry C. Pao, President and CEO. "All four of our growth markets, medical ultrasound, LED lighting and backlighting, printers and industrial/other, performed well. Last January we announced our plan for a 20% year-over-year quarterly run-rate sales growth in the fourth quarter, from $14.6 million in the March, 2013 quarter to $17.6 million in the March, 2014 quarter. Since then, sales in all of our four growth markets have increased and we have achieved sales this quarter of $17.7 million. Our recently launched products have been well received and continue to generate design wins, some of which may result in volume production quickly in the coming months. We have many best in class innovative products in the pipeline. We're very pleased with our gross margin expansion to 57%, our net margin to 15%, and our continued trend of positive cash flow from operating activities."

Third Fiscal Quarter Outlook

Sales in the third fiscal quarter are expected to be flat to 5% lower sequentially due to normal medical ultrasound market seasonality, partially mitigated by increases in LED lighting and backlighting driver sales. Third quarter gross margin is expected to be 54% to 56%, and the tax rate is expected to be approximately 25%. During the second half of fiscal 2014, the Company expects to launch several new products for medical ultrasound imaging, for industrial, and for driving LEDs for general lighting and for TV backlighting. Many of these products are innovative and will be covered by patent applications.

Forward-Looking Statements

The industry in which we compete is characterized by extreme rapid changes in technology and frequent new product introductions. We believe that our long-term growth will depend largely on our ability to continue to enhance existing products and to introduce new products and features that meet the continually changing requirements of our customers. All statements contained in this press release that are not historical facts are forward-looking statements. They are not guarantees of future performance or events. They are based upon current expectations, estimates, beliefs, and assumptions about the future, which may prove incorrect, and upon our goals and objectives, which may change. Often such statements can be identified by the use of the words such as "will," "intends," "expects," "plans," "believes," "anticipates" and "estimates." Examples of forward-looking statements include our expectation that third fiscal quarter sales will be flat to 5% lower sequentially, gross margin will be 54% to 56%, our tax rate will be 25%, our belief that some of our recent product launches may result in volume production quickly in the coming months, and our anticipation that during the second half of fiscal 2014 we will launch several new medical ultrasound for medical ultrasound imaging, for industrial, and for driving LEDs for general lighting and for TV backlighting.

These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events but rather involve a number of risks and uncertainties including, but not limited to, whether our customers experience the demand we anticipate for their products based in part upon their input and our order backlog, whether our distributors have the sell-through we anticipate and whether we receive the additional orders we anticipate, whether the designed performance of our devices satisfies our customers' requirements so that they continue to design our devices into their products, whether our devices perform to their design specification, whether competitors introduce devices at lower prices than our devices causing price erosion, whether we are successful in the engineering of new products, whether we encounter production issues in device manufacturing or moving new products from engineering into production, whether customers have requirements for deliveries of newly launched products during fiscal 2014, whether the world-wide economy will be healthy during fiscal 2014, and whether our fab equipment continues to operate at expected capacities without need of replacement, as well as other risk factors detailed in our Form 8-K, 10-K, and 10-Q filings with the Securities and Exchange Commission. Due to these and other risks, our future actual results could differ materially from those discussed above. We undertake no obligation to publicly release updates or revisions to these statements that speak only as of this date.

Conference Call Details

The Company will host a conference call at 2:30 p.m. PT (5:30 p.m. ET) on October 22, 2013, following the earnings release. President and CEO, Dr. Henry C. Pao, and CFO, Phil Kagel, will present an overview of the second fiscal quarter financial results, discuss current business conditions, and then respond to questions.

The call will be available live for any interested party by dialing 866-952-1906 (domestic) or 785-424-1825 (toll, international) 5 minutes before the scheduled start time. A recorded replay will be available shortly after the call as a downloadable .mp3 file at http://www.supertex.com/company_ir.html until 11:59 p.m. ET, November 22, 2013.

About Supertex

Supertex, Inc. is a publicly held mixed signal semiconductor manufacturer, focused in high voltage products for use in the medical ultrasound imaging, LCD TV and computer monitor backlighting, LED general lighting, telecommunications, printer, flat panel display, industrial and consumer product industries. Supertex product, corporate and financial information is readily available at our website: http://www.supertex.com.

For further information, contact Investor Relations at Supertex, Inc., 1235 Bordeaux Drive, Sunnyvale, California 94089, 408-222-8888 or visit our website at http://www.supertex.com.

Use of Non-GAAP Financial Information

To supplement our financial results presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP net income and diluted non-GAAP net income per share. We present such non-GAAP financial measures in reporting our financial results to provide investors with an additional tool to evaluate our operating results. Because these non-GAAP measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Our management uses each of the above non-GAAP financial measures internally to understand, manage and evaluate our business. Our management believes it is useful for us and for investors to review, as applicable, both GAAP information, which includes employee stock-based compensation expense, and the non-GAAP measures, which exclude this information, in order to assess the performance of our core continuing businesses and for planning and forecasting in future periods. Each of these non-GAAP measures is intended to provide investors with an understanding of our operational results and trends that more readily enables them to analyze our base financial and operating performance and facilitate period-to-period comparisons and analysis of operating trends. Our management believes each of these non-GAAP financial measures is useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making.

Our GAAP cost of sales and operating expenses include employee stock-based compensation. Our non-GAAP financial measures reflect adjustments to exclude this employee stock-based compensation. We believe cost of sales excluding share-based compensation, R&D expense excluding share-based compensation, and SG&A expense excluding share-based compensation are useful information for investors because comparative differences in the corresponding GAAP measures for different periods may reflect factors such as a different stock price when equity awards were made and different equity award practices rather than changes in the operation of the business. Stock options are the form of equity compensation we presently utilize and they are a key incentive we offer our employees. We believe they have contributed to the sales earned during the period and will contribute to our future sales generation. Employee stock-based compensation expenses will recur in future periods.


                               SUPERTEX, INC.
                   CONSOLIDATED BALANCE SHEET INFORMATION
                                (unaudited)

                                     September 28, 2013      March 30, 2013
                                     ------------------  ------------------
                                                 (in thousands)
ASSETS
Cash and cash equivalents            $           10,163  $           16,414
Short term investments                          146,571             123,847
Trade accounts receivable, net                    7,708               7,335
Inventories                                      12,428              11,344
Deferred tax assets                               7,644               7,517
Prepaid income taxes                              5,763               3,203
Prepaid expenses and other current
 assets                                           2,871               2,538
                                     ------------------  ------------------
  Total current assets                          193,148             172,198
Long term investments                                 -              13,800
Property, plant and equipment, net                4,124               4,334
Other assets                                        732                 787
Deferred tax assets, noncurrent                   5,115               5,659
                                     ------------------  ------------------
TOTAL ASSETS                         $          203,119  $          196,778
                                     ==================  ==================

LIABILITIES
Trade accounts payable               $            3,078  $            2,521
Accrued salaries and employee
 benefits                                        14,901              13,230
Other accrued liabilities                           682                 633
Deferred revenue                                  2,616               2,651
Income taxes payable                                437                 165
                                     ------------------  ------------------
  Total current liabilities                      21,714              19,200
Income taxes payable, noncurrent                  2,681               3,535
Deferred tax liabilities, noncurrent                115                 115
Other accrued liabilities,
 noncurrent                                         583                 575
                                     ------------------  ------------------
  Total liabilities                              25,093              23,425


SHAREHOLDERS' EQUITY
Common stock                                     69,875              68,389
Accumulated other comprehensive loss                (93)               (564)
Retained earnings                               108,244             105,528
                                     ------------------  ------------------
  Total shareholders' equity                    178,026             173,353
                                     ------------------  ------------------
TOTAL LIABILITIES AND SHAREHOLDERS'
 EQUITY                              $          203,119  $          196,778
                                     ==================  ==================



                               SUPERTEX, INC.
                  CONSOLIDATED INCOME STATEMENT INFORMATION
                                 (unaudited)

                                Three Months Ended         Six Months Ended
                          ------------------------------ -------------------
                               (in thousands, except per share amounts)
                          September  June 29,  September September September
                           28, 2013      2013   29, 2012  28, 2013  29, 2012
                          --------- ---------  --------- --------- ---------
Net sales                 $  17,749 $  16,198  $  15,919 $  33,947 $  31,978
Cost of sales(1)              7,578     7,466      8,571    15,044    17,136
                          --------- ---------  --------- --------- ---------
  Gross profit               10,171     8,732      7,348    18,903    14,842
Research and
 development(1)               3,685     3,480      3,556     7,165     7,042
Selling, general and
 administrative(1)            3,524     3,149      3,449     6,673     6,833
                          --------- ---------  --------- --------- ---------
  Income from operations      2,962     2,103        343     5,065       967
Interest and other
 income, net                    714       469        616     1,183       818
                          --------- ---------  --------- --------- ---------
  Income before income
   taxes                      3,676     2,572        959     6,248     1,785
Provision for (benefit
 from) income taxes             943      (314)       269       629       498
                          --------- ---------  --------- --------- ---------
  Net income              $   2,733 $   2,886  $     690 $   5,619 $   1,287
                          ========= =========  ========= ========= =========
Net income per share:
    Basic                 $    0.24 $    0.25  $    0.06 $    0.49 $    0.11
                          ========= =========  ========= ========= =========
    Diluted               $    0.24 $    0.25  $    0.06 $    0.48 $    0.11
                          ========= =========  ========= ========= =========
Shares used in per share
 computation:
    Basic                    11,505    11,528     11,779    11,516    11,889
                          ========= =========  ========= ========= =========
    Diluted                  11,601    11,585     11,782    11,593    11,892
                          ========= =========  ========= ========= =========


(1) Includes amortization of employee stock-based compensation as follows:
    Cost of sales         $     125 $     108  $     130 $     233 $     264
    Research and
     development          $     293 $     340  $     335 $     633 $     684
    Selling, general and
     administrative       $     287 $     195  $     304 $     482 $     566



                               SUPERTEX, INC.
          SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
                                (unaudited)

                             Three Months Ended          Six Months Ended
                      -------------------------------  --------------------
                             (in thousands, except per share amounts)
                      September   June 29,  September  September  September
                       28, 2013       2013   29, 2012   28, 2013   29, 2012
                      ---------  ---------  ---------  ---------  ---------
GAAP net income       $   2,733  $   2,886  $     690  $   5,619  $   1,287
Adjustment for stock-
 based compensation
 included in:
  Cost of sales             125        108        130        233        264
  Research and
   development              293        340        335        633        684
  Selling, general
   and administrative       287        195        304        482        566
                      ---------  ---------  ---------  ---------  ---------
    Subtotal                705        643        769      1,348      1,514
Tax effect of stock-
 based compensation         (13)       (14)       (18)       (27)       (36)
                      ---------  ---------  ---------  ---------  ---------
Non-GAAP net income
 excluding employee
 stock-based
 compensation         $   3,425  $   3,515  $   1,441  $   6,940  $   2,765
                      =========  =========  =========  =========  =========

Non-GAAP net income
 per share:
  Basic               $    0.30  $    0.30  $    0.12  $    0.60  $    0.23
                      =========  =========  =========  =========  =========
  Diluted             $    0.30  $    0.30  $    0.12  $    0.60  $    0.23
                      =========  =========  =========  =========  =========
Shares used in per
 share computation:
  Basic                  11,505     11,528     11,779     11,516     11,889
                      =========  =========  =========  =========  =========
  Diluted                11,601     11,585     11,782     11,593     11,892
                      =========  =========  =========  =========  =========



                               SUPERTEX, INC.
     SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE
                                (unaudited)

                             Three Months Ended          Six Months Ended
                      -------------------------------  --------------------
                             (in thousands, except per share amounts)
                      September   June 29,  September  September  September
                       28, 2013       2013   29, 2012   28, 2013   29, 2012
                      ---------  ---------  ---------  ---------  ---------
Shares used in per
 share computation:
  Diluted                11,601     11,585     11,782     11,593     11,892
                      =========  =========  =========  =========  =========

DILUTED:
GAAP net income per
 share                $    0.24  $    0.25  $    0.06  $    0.48  $    0.11
Adjustments to
 reconcile net income
 to non-GAAP net
 income per share:
Employee stock-based
 compensation effects
 included in:
  Cost of sales            0.01       0.01       0.01       0.02       0.02
  Research and
   development             0.03       0.03       0.03       0.06       0.06
  Selling, general
   and administrative      0.02       0.01       0.02       0.04       0.04
  Provision for
   income taxes           (0.00)     (0.00)     (0.00)     (0.00)     (0.00)
                      ---------  ---------  ---------  ---------  ---------
Non-GAAP net income
 per share excluding
 employee stock-based
 compensation         $    0.30  $    0.30  $    0.12  $    0.60  $    0.23
                      =========  =========  =========  =========  =========

Corporate Headquarters:
Dr. Henry C. Pao
President & CEO
408/222-8888

Add a Comment

News   More...

Start Premium Trial Register For Free

P F Fund Financial Data (13,000+ funds)
P F Stock Financial Data (7,000+ stocks)
P F Stock and Fund Screeners (basic)
P F Investing Articles and Market Commentary
P F Articles Archive (>30 days)
P F Discuss (dozens of stock, fund, bond, and general bulletin boards)
P F Portfolio Manager (basic)
P F Morningstar Investment Classroom
P F Access Your Portfolio Anytime, Anywhere via Your Mobile Device
P   Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)
P   Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)
P   Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)
P   Portfolio Monitor (monthly and on-demand personalized portfolio statements)
P   Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)
P   Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters
P   Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)
P   Discounts on Morningstar newsletters, books, seminars, and more

Sign-up to Morningstar


Basic Access

Articles and Videos
Morningstar video reports, articles, data, and tools. Dig into our lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments.
Morningstar Discuss
Follow the buzz on individual stocks or fund families. Plus, read the latest posts from Morningstar members and analysts.
Portfolio Manager
Track your investments and watch lists with our Portfolio Manager. Customize your view with our comprehensive stock, fund, and ETF data.

Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.

Unlimited Access

Analyst Research
Gather in-depth, actionable insight on over 3,700 stock and mutual funds covered by Morningstar analysts. View our mutual fund Analyst Reports favored by professionals, savvy experienced investors, and new investors researching options for retirement savings, college plans, or other investment needs.
Portfolio X-Ray®
Ensure your portfolio is positioned exactly how you want with Morningstar's X-Ray Interpreter and Stock Intersection tools. A Barron's "Best of the Web" award winner for five years running, X-Ray Interpreter goes under the hood of your portfolio to provide a useful allocation, sector, and geographic analysis. And you can discover how much of a stock you really own, individually and through mutual funds, with Stock Intersection.
Investment Picks
Find new 5-star stocks (greatly undervalued companies) to consider daily. Our 5-star stock rating is a proven winner, consistently beating benchmarks like the S&P 500. Plus, browse our Fund Analyst Picks and Stewardship Grades to find shareholder-friendly mutual funds that are poised for outperformance.
Portfolio Monitor
Get a clear view of your investments with personalized reports about your portfolio. Receive monthly statements and generate reports on-demand to help you stay on track to meet your investment goals.

Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.

Content Partners
Morningstar - - Supertex Reports Second Fiscal Quarter Results
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Author |  Collection |  Interest |  Popularity

Previous: Supertex rallies on Microchip acquisition  |  Next: Supertex Reports Third Fiscal Quarter Results