IXYS Corporation Reports Results for the Fourth Quarter and Fiscal Year Ended March 31, 2014

Highlights:

  • Net revenues for the fiscal year ended March 31, 2014 were $336.3 million, an increase of $56.3 million, or 20.1%, from the prior fiscal year.
  • Net revenues for the fiscal quarter ended March 31, 2014 were $89.9 million, an increase of $23.0 million, or 34.4%, from the fiscal quarter ended March 31, 2013.
  • March 2014 quarter net revenues were up from the December 2013 quarter, proving to be the fifth consecutive quarter of revenue growth.
  • Gross profit for the quarter ended March 31, 2014 was $25.4 million, or 28.2% of net revenues, as compared to gross profit of $18.4 million, or 27.6% of net revenues, for the same quarter in the prior fiscal year.
  • IXYS declared a $0.03 per share dividend on February 7, 2014, marking the sixth consecutive quarter of dividends.

Business Wire

MILPITAS, Calif.--(BUSINESS WIRE)--

IXYS Corporation (IXYS), an international power semiconductor and IC company, today announced financial results for its fourth quarter and fiscal year ended March 31, 2014.

Net revenues for the quarter were $89.9 million, up $23.0 million, or 34.4%, from $66.9 million in net revenues for the March 31, 2013 quarter. Sequentially, March 31, 2014 quarter net revenues were up from the December 31, 2013 quarter net revenues, marking the fifth consecutive quarter of revenue growth.

For the twelve months ended March 31, 2014, IXYS reported net revenues of $336.3 million, an increase of $56.3 million, or 20.1%, as compared with net revenues of $280.0 million for the same period in the prior fiscal year.

“Revenues have been rising steadily over the past several quarters, with broad-based global sales growth. Our cross-selling efforts have been rewarded, as customers are seeking more products from IXYS – from high power semiconductors to power management microcontrollers. Our business model is working; sales are expected to increase as global macroeconomic conditions continue to improve,” commented Dr. Nathan Zommer, CEO and Founder of IXYS.

Net income for the quarter ended March 31, 2014 was $132,000, or $0.00 per diluted share, an increase of $2.0 million from the March 31, 2013 quarter, which showed a net loss of $1.9 million, or $0.06 loss per share.

The March 31, 2014 quarter non-GAAP net income, which excludes the impact of charges for the amortization of acquired intangible assets and stock compensation, was $4.0 million, or $0.13 per diluted share, which was an increase of $5.0 million, as compared to the non-GAAP net loss of $958,000, or $0.03 loss per diluted share, for the same period in the prior fiscal year.

Net income for the twelve months ended March 31, 2014 was $6.0 million, or $0.19 per diluted share, as compared to net income of $7.6 million, or $0.24 per diluted share, for the same period in the prior fiscal year.

For the twelve months ended March 31, 2014, non-GAAP net income, which excludes the impact of charges for the amortization of acquired intangible assets and stock compensation, was $18.4 million, or $0.58 per diluted share, as compared to non-GAAP net income of $12.1 million, or $0.38 per diluted share, for the same period in the prior fiscal year.

Gross profit for the quarter ended March 31, 2014 was $25.4 million, or 28.2% of net revenues, as compared to gross profit of $18.4 million, or 27.6% of net revenues, for the same quarter in the prior fiscal year.

Gross profit for the twelve months ended March 31, 2014 was $100.2 million, or 29.8% of net revenues, as compared to gross profit of $84.9 million, or 30.3% of net revenues, for the same period in the prior fiscal year.

Cash and cash equivalents totaled $98.8 million at March 31, 2014.

Adjusted EBITDA, which excludes stock-based compensation expense, was $10.3 million and $39.1 million, respectively, for the quarter and fiscal year ended March 31, 2014.

In the March 2014 quarter, the company declared a $0.03 per share dividend, highlighting the sixth consecutive quarter of dividends.

“We are starting to see signs of recovery in Europe and Asia, and the stability in the United States is continuing. Our balance sheet continues to be strong and our stockholders’ equity has grown to more than $270 million. Customers worldwide have resumed purchasing trends, and demand for IXYS products has increased; however, our optimism must be mitigated by ongoing market volatility. Therefore, we expect revenues in the June 2014 quarter to be slightly higher than revenues in the March 2014 quarter,” said Mr. Uzi Sasson, President and Chief Financial Officer of IXYS.

Non-GAAP Information

Included above and within the attached schedules are certain non-GAAP financial figures. During the quarter and year ended March 31, 2014, the company incurred non-cash expenses, including those associated with amortization of intangible assets and stock compensation. Adjusting the net income in the March 31, 2014 quarter and year to exclude the impact of amortization of intangible assets and stock compensation expenses, results in a financial presentation for the company without the effect of these non-cash charges. Similarly, adjusted EBITDA for the March 31, 2014 quarter and year reflects the exclusion of amortization, depreciation and stock compensation expense, all non-cash charges, as well as interest and taxes, and may serve as an indication of the company’s ability to service its debt. Management believes non-GAAP net income, non-GAAP net income per share and adjusted EBITDA are useful measures of operating performance. However, the non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net income and net income per share or other financial measures prepared in accordance with GAAP.

These non-GAAP measures have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Other companies in our industry may calculate non-GAAP net income, non-GAAP net income per share and adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.

About IXYS Corporation

Since its founding in Silicon Valley, IXYS Corporation has been developing technology-driven products to improve energy conversion efficiency, generate clean energy, improve automation, and provide advanced products for the transportation, medical and telecommunications industries. IXYS, with its subsidiaries, is a worldwide pioneer in the development of power semiconductors, solid state relays, high voltage integrated circuits (HVIC), and microcontrollers that are necessary in conserving energy and in reducing the world’s dependence on fossil fuels.

Diminishing natural resources, demand for renewable energy and environmental directives for energy efficiency represent a significant challenge. IXYS’ power semiconductors and mixed-signal integrated circuits (IC) play a vital role in reducing energy costs and consumption by optimizing the energy efficiency of everyday products. With an end customer base of over 3,500 telecommunications, transportation, industrial, medical and consumer companies, IXYS is a worldwide recognized provider of advanced semiconductors.

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

Safe Harbor Statement

The foregoing press release contains forward-looking statements, including those related to demand for our products, our business model, expectations for increasing sales, global macroeconomic conditions, regional economic conditions, purchasing trends and our revenues in the June 2014 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, increased competition, cash flow difficulties, unanticipated technological hurdles, manufacturing challenges, capacity limitations, adverse changes in customer demand, declining economic conditions or increasing product costs, among other things. Further information on other factors that could affect IXYS is detailed and included in reports that IXYS has filed with the Securities and Exchange Commission, including its Form 10-Q for the fiscal quarter ended December 31, 2013. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements.

IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
       
 
March 31, March 31,
2014 2013
ASSETS
Current assets:
Cash and cash equivalents $ 98,775 $ 107,430
Accounts receivable, net 45,707 37,752
Inventories, net 93,028 83,829
Prepaid expenses and other current assets 9,520 7,328
Deferred income taxes   7,975   7,167  
Total current assets 255,005 243,506
Plant and equipment, net 50,569 51,995
Other assets 53,292 13,128
Deferred income taxes   24,316   24,847  
 
Total assets $ 383,182 $ 333,476  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Current portion of capitalized lease obligations $ 2,468 $ 2,458
Current portion of notes payable to bank 1,028 15,956
Accounts payable 15,684 12,822
Accrued expenses and other current liabilities   50,166   16,992  
Total current liabilities 69,346 48,228
Capitalized lease and other long term obligations, net of current portion 27,659 15,310
Pension liabilities   15,545   16,330  
Total liabilities   112,550   79,868  
 
Common stock 380 379
Additional paid-in capital 147,508 140,604
Retained earnings 117,715 115,718
Accumulated other comprehensive income   5,029   (3,093 )
Stockholders' equity   270,632   253,608  
 
Total liabilities and stockholders' equity $ 383,182 $ 333,476  
 
IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
       
 
Three Months Ended Twelve Months
March 31, March 31,
2014       2013   2014       2013  
       
Net revenues $ 89,895 $ 66,884 $ 336,330 $ 280,014
Cost of goods sold   64,506         48,452     236,120         195,134  
Gross profit   25,389         18,432     100,210         84,880  
Operating expenses:
Research, development and engineering 7,850 7,273 30,884 28,022
Selling, general and administrative 11,329 9,839 41,983 39,287
Amortization of intangibles   3,425         561     10,521         2,244  
Total operating expenses   22,604         17,673     83,388         69,553  
Operating income 2,785 759 16,822 15,327
Other income (expense), net   (192 )       (722 )   (3,363 )       (645 )
 
Income before income tax provision 2,593 37 13,459 14,682
Provision for income tax   2,461         1,942     7,413         7,034  
Net income (loss) $ 132       $ (1,905 ) $ 6,046       $ 7,648  
 
Net income (loss) per share - basic $ 0.00       $ (0.06 ) $ 0.19       $ 0.25  
 
Weighted average shares used in per share calculation - basic   31,308         30,857     31,146         31,025  
 
Net income (loss) per share - diluted $ 0.00       $ (0.06 ) $ 0.19       $ 0.24  
 
 
Weighted average shares used in per share calculation - diluted   32,160         30,857     31,916         31,695  
 
Reconciliation of net income to Non-GAAP net income        
    Three Months Ended Twelve Months Ended
March 31, March 31,
2014   2013 2014   2013
 
Net income (loss) $ 132 $ (1,905 ) $ 6,046 $ 7,648
 
Amortization of intangible assets 3,425 561 10,521 2,244
Stock compensation expense   489   386     1,810   2,243
Non-GAAP net income (loss) $ 4,046 $ (958 ) $ 18,377 $ 12,135
 
Reconciliation of net income per share, diluted to Non-GAAP net income per share, diluted
 
Three Months Ended Twelve Months Ended
March 31, March 31,
2014   2013 2014   2013
 
Net income (loss) per share, diluted $ 0.00 $ (0.06 ) $ 0.19 $ 0.24
 
Amortization of intangible assets 0.11 0.02 0.33 0.07
Stock compensation expense   0.02   0.01     0.06   0.07
Non-GAAP net income (loss) per share, diluted $ 0.13 $ (0.03 ) $ 0.58 $ 0.38
 
Weighted average shares used in per share calculation, diluted   32,160   30,857     31,916   31,695
 
Adjusted EBITDA
     
Qtr Ended Year Ended
Mar. 31, 2014 Mar. 31, 2014
Net income $ 132 $ 6,046
 
Add:
Income tax expense 2,461 7,413
Interest expense 427 1,579
Depreciation and amortization 6,568 21,274
Share-based employee compensation   752   2,785
Adjusted EBITDA $ 10,340 $ 39,097

Contact:
IXYS Corporation
Uzi Sasson, 408-457-9000
President and CFO

View Comments (0)