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| 8-K - SUPERTEX 8K 05-29-2012 - SUPERTEX INC | supx8kq4fy12.htm |
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Supertex, Inc.
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News Release
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FOR IMMEDIATE RELEASE
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Corporate Headquarters:
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Dr. Henry C. Pao
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President & CEO
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408/222-8888
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Supertex Reports Fourth Fiscal Quarter and Fiscal Year-end Results
Sunnyvale, CA (May 9, 2012) - Supertex, Inc. (NASDAQ GS: SUPX) today reported financial results for the fourth fiscal quarter and fiscal year ended March 31, 2012. Net sales for the fourth fiscal quarter were $16,451,000, a 17% increase compared to the prior quarter of $14,066,000 and a 9% decrease compared to $17,983,000 in the same quarter last year. On a GAAP basis, net income in the fourth fiscal quarter was $1,273,000 or $0.11 per diluted share, as compared with $96,000 or $0.01 per diluted share in the prior fiscal quarter, and $1,492,000 or $0.12 per diluted share in the same quarter of the prior fiscal year.
For the fiscal year ended March 31, 2012, net sales declined 21% to $65,535,000 versus $83,172,000 for the prior fiscal year. On a GAAP basis, net income declined 61% to $4,749,000, or $0.38 per diluted share, as compared with $12,282,000, or $0.94 per diluted share.
Non-GAAP earnings per diluted share for the fourth quarter of fiscal 2012 were $0.16 excluding pre-tax employee stock-based compensation of $788,000, compared with $0.07 in the prior quarter, excluding pre-tax employee stock-based compensation of $821,000, and $0.16 in the same quarter of the prior fiscal year, excluding pretax employee stock-based compensation of $727,000. For the fiscal year ended March 31, 2012, non-GAAP net income per diluted share was $0.62, excluding pre-tax employee stock-based compensation of $3,031,000, as compared to $1.17 for the prior fiscal year, excluding pre-tax employee stock-based compensation of $3,099,000.
“We are very pleased with the 29% sequential surge in sales of our medical electronics products and the ramping of sales of our printer/EL family of products,” stated Dr. Henry C. Pao, President and CEO. “Major contributors to the surge were increased sales of our analog switches and high voltage pulser circuits and chipsets for medical ultrasound equipment as well as our custom processing services for other medical devices. We were able to meet our customers’ delivery schedules in spite of their short lead times. Also, sequential quarterly sales of our printer/EL products increased 39% primarily due to drivers for OLED manufacturing equipment. Additionally, the orders for LED drivers used in backlighting high-end monitors have increased. We project our overall sales in the first quarter of fiscal 2013 to be flat to up 6% sequentially. With seven and half weeks to go for the quarter, 77% of the projected sales have either already been shipped or else are covered by orders which we have confirmed to our customers that we will ship this quarter.”
Dr. Pao commented further, “We continue to focus on bringing new products to market, launching four in our fiscal fourth quarter bringing our total for fiscal 2012 to 27, most of which address the medical ultrasound and LED lighting markets. We expect to launch twelve more in the first quarter of fiscal 2013.
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“Gross margin for the fourth quarter of fiscal 2012 was 47%, a big improvement from the prior quarter of 38%,” continued Dr. Pao. “Operating expenses increased 11% sequentially due in part to increased development costs in support of the large number of new product development and to higher sales incentive costs resulting from our increased sales. Our tax benefit rate was 19% for the quarter, and our tax rate was 2% for the whole fiscal year. We reduced inventory by $2.4 million in the fourth quarter through increased shipments and limiting the increase in wafer fab capacity utilization from 25% last quarter to 35%, which is expected to improve further over the new fiscal year. We continued to generate positive cash flow. During the quarter, cash generated from operating activities was $3.0 million and we repurchased 69,000 shares for $1.2 million. Through March 31, 2012, since the current stock repurchase program was announced in January 2011, we have bought back 1,174,000 shares of Supertex stock for a total of $23.4 million.”
Commenting on total fiscal year 2012, Dr. Pao stated, “While overall sales for the year were lower sequentially by over 20%, we ended on an upswing as our fourth quarter sales were lower by less than 10% compared to the same quarter last year. During fiscal 2012, we generated $4.7 million in net profit and $11.8 million in positive cash flow from operating activities. We’re excited about our new product offerings going into fiscal 2013, especially in medical ultrasound and LED lighting, as well as our new OLED display products. We plan to launch a record number of exciting new products in fiscal 2013.”
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 anticipation that in the first fiscal quarter sales will be flat to up 6% sequentially, our expectation that wafer fab capacity utilization will improve during fiscal 2013, and that we plan to launch twelve new products in the first quarter and many more new products in fiscal 2013.
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 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, 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.
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Conference Call Details
The Company will host a conference call at 2:30 p.m. PDT (5:30 p.m. EDT) on May 9, 2012, following the earnings release. President and CEO, Dr. Henry C. Pao, and CFO, Phil Kagel, will present an overview of the fourth fiscal quarter and fiscal year-end financial results, discuss current business conditions, and then respond to questions.
The call will be available live for any interested party by dialing 800-862-9098 (domestic) or 785-424-1051 (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. EDT, June 9, 2012.
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 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 operation 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.
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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.
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SUPERTEX, INC.
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CONSOLIDATED BALANCE SHEET INFORMATION
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(unaudited)
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March 31, 2012
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April 2, 2011
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(in thousands)
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ASSETS
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Cash and cash equivalents
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$ | 19,860 | $ | 23,962 | ||||
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Short term investments
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111,137 | 109,760 | ||||||
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Trade accounts receivable, net
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8,021 | 8,100 | ||||||
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Inventories
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14,438 | 20,600 | ||||||
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Deferred income taxes
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7,529 | 7,228 | ||||||
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Prepaid income taxes
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3,032 | 6,461 | ||||||
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Prepaid expenses and other current assets
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6,786 | 2,975 | ||||||
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Total current assets
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170,803 | 179,086 | ||||||
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Long term investments
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25,900 | 30,200 | ||||||
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Property, plant and equipment, net
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4,941 | 5,708 | ||||||
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Other assets
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621 | 622 | ||||||
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Deferred income taxes
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5,375 | 4,980 | ||||||
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TOTAL ASSETS
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$ | 207,640 | $ | 220,596 | ||||
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LIABILITIES
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Trade accounts payable
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$ | 1,994 | $ | 3,283 | ||||
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Accrued salaries and employee benefits
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12,434 | 12,430 | ||||||
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Other accrued liabilities
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615 | 772 | ||||||
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Deferred revenue
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2,560 | 3,664 | ||||||
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Income taxes payable
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23 | 2,264 | ||||||
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Total current liabilities
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17,626 | 22,413 | ||||||
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Income taxes payable, noncurrent
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4,161 | 4,974 | ||||||
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Other accrued liabilities, noncurrent
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561 | 290 | ||||||
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Total liabilities
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22,348 | 27,677 | ||||||
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SHAREHOLDERS' EQUITY
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Common stock
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68,031 | 68,499 | ||||||
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Accumulated other comprehensive loss
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(1,345 | ) | (1,683 | ) | ||||
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Retained earnings
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118,606 | 126,103 | ||||||
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Total shareholders' equity
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185,292 | 192,919 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ | 207,640 | $ | 220,596 | ||||
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SUPERTEX, INC.
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CONSOLIDATED INCOME STATEMENT INFORMATION
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(unaudited)
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Three Months Ended
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Twelve Months Ended
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(in thousands, except per share amounts)
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| March 31, 2012 | December 31, 2011 |
April 2, 2011
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March 31, 2012
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April 2, 2011
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Net sales
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$ | 16,451 | $ | 14,066 | $ | 17,983 | $ | 65,535 | $ | 83,172 | ||||||||||
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Cost of sales(1)
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8,723 | 8,708 | 8,863 | 34,855 | 37,984 | |||||||||||||||
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Gross profit
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7,728 | 5,358 | 9,120 | 30,680 | 45,188 | |||||||||||||||
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Research and development(1)
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3,885 | 3,480 | 4,028 | 14,399 | 14,851 | |||||||||||||||
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Selling, general and administrative(1)
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3,614 | 3,269 | 3,521 | 12,840 | 14,194 | |||||||||||||||
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Income (loss) from operations
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229 | (1,391 | ) | 1,571 | 3,441 | 16,143 | ||||||||||||||
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Interest and other income, net
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837 | 784 | 558 | 1,404 | 1,637 | |||||||||||||||
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Income (loss) before income taxes
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1,066 | (607 | ) | 2,129 | 4,845 | 17,780 | ||||||||||||||
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(Benefit from) provision for income taxes
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(207 | ) | (703 | ) | 637 | 96 | 5,498 | |||||||||||||
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Net income
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$ | 1,273 | $ | 96 | $ | 1,492 | $ | 4,749 | $ | 12,282 | ||||||||||
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Net income per share:
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Basic
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$ | 0.11 | $ | 0.01 | $ | 0.12 | $ | 0.38 | $ | 0.95 | ||||||||||
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Diluted
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$ | 0.11 | $ | 0.01 | $ | 0.12 | $ | 0.38 | $ | 0.94 | ||||||||||
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Shares used in per share computation:
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Basic
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12,044 | 12,063 | 12,921 | 12,340 | 12,976 | |||||||||||||||
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Diluted
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12,048 | 12,066 | 12,952 | 12,351 | 13,030 | |||||||||||||||
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(1) Includes amortization of employee stock-based compensation as follows:
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Cost of sales
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$ | 156 | $ | 161 | $ | 175 | $ | 590 | $ | 676 | ||||||||||
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Research and development
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$ | 343 | $ | 352 | $ | 404 | $ | 1,271 | $ | 1,394 | ||||||||||
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Selling, general and administrative
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$ | 289 | $ | 308 | $ | 148 | $ | 1,170 | $ | 1,029 | ||||||||||
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SUPERTEX, INC.
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SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
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(unaudited)
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Three Months Ended
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Twelve Months Ended
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(in thousands, except per share amounts)
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March 31, 2012
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December 31, 2011
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April 2, 2011
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March 31, 2012
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April 2, 2011
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GAAP net income
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$ | 1,273 | $ | 96 | $ | 1,492 | $ | 4,749 | $ | 12,282 | ||||||||||
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Adjustment for stock-based compensation included in:
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Cost of sales
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156 | 161 | 175 | 590 | 676 | |||||||||||||||
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Research and development
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343 | 352 | 404 | 1,271 | 1,394 | |||||||||||||||
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Selling, general and administrative
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289 | 308 | 148 | 1,170 | 1,029 | |||||||||||||||
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Subtotal
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788 | 821 | 727 | 3,031 | 3,099 | |||||||||||||||
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Tax effect of stock-based compensation
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(93 | ) | (19 | ) | (110 | ) | (160 | ) | (179 | ) | ||||||||||
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Non-GAAP net income excluding employee stock-based compensation
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$ | 1,968 | $ | 898 | $ | 2,109 | $ | 7,620 | $ | 15,202 | ||||||||||
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Non-GAAP net income per share:
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Basic
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$ | 0.16 | $ | 0.07 | $ | 0.16 | $ | 0.62 | $ | 1.17 | ||||||||||
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Diluted
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$ | 0.16 | $ | 0.07 | $ | 0.16 | $ | 0.62 | $ | 1.17 | ||||||||||
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Shares used in per share computation:
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Basic
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12,044 | 12,063 | 12,921 | 12,340 | 12,976 | |||||||||||||||
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Diluted
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12,048 | 12,066 | 12,952 | 12,351 | 13,030 | |||||||||||||||
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SUPERTEX, INC.
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SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP INCOME PER SHARE
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(unaudited)
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Three Months Ended
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Twelve Months Ended
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(in thousands, except per share amounts)
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| March 31, 2012 |
December 31, 2011
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April 2, 2011
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March 31, 2012
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April 2, 2011
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Shares used in per share computation:
Diluted
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12,048 | 12,066 | 12,952 | 12,351 | 13,030 | |||||||||||||||
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DILUTED:
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GAAP net income per share
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$ | 0.11 | $ | 0.01 | $ | 0.12 | $ | 0.38 | $ | 0.94 | ||||||||||
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Adjustments to reconcile net income to non-GAAP net income per share:
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Employee stock-based compensation effects included in:
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Cost of sales
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0.01 | 0.01 | 0.01 | 0.05 | 0.05 | |||||||||||||||
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Research and development
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0.03 | 0.03 | 0.03 | 0.10 | 0.11 | |||||||||||||||
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Selling, general and administrative
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0.02 | 0.02 | 0.01 | 0.10 | 0.08 | |||||||||||||||
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Provision for income taxes
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(0.01 | ) | (0.00 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | ||||||||||
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Non-GAAP net income per share
excluding employee stock-based compensation
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$ | 0.16 | $ | 0.07 | $ | 0.16 | $ | 0.62 | $ | 1.17 | ||||||||||
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