SYXI Ixys

IXYS Corporation (Nasdaq:SYXI) today announced that, for the third fiscal quarter ended December 31, 2005, IXYS reported net revenues of $60.3 million, as compared with net revenues of $66.3 million for the same period in the prior fiscal year. Gross profit was $18.9 million, or 31.4% of net revenues, for the quarter ended December 31, 2005, as compared to gross profit of $20.1 million, or 30.3% of net revenues, for the same quarter in the prior fiscal year. Net income for the quarter was $4.4 million, or $0.12 per diluted share, as compared to a net income of $4.7 million or $0.14 per diluted share, for the same quarter in the prior fiscal year. For the nine month period ended December 31, 2005, IXYS reported net revenues of $187.1 million, as compared with net revenues of $187.6 million for the same period in the prior fiscal year. Gross profit for the nine month period ended December 31, 2005 was $61.3 million, or 32.8% of net revenues, as compared to gross profit of $56.7 million, or 30.2% of net revenues, for the same period in the prior fiscal year. Net income for the nine month period was $15.1 million, or $0.42 per diluted share, an increase of 44.4% as compared to net income of $10.5 million, or $0.30 per diluted share, for the same period in the prior fiscal year. "Consistent with our long term growth plan, we are pleased to demonstrate cash and profit growth on a year to date basis. We have seen the sequential weakness and uncertainty of the consumer market and have positioned IXYS for further diversification, growth and improved gross margins," said Dr. Nathan Zommer, Chief Executive Officer. "We are cautious about our next quarter, especially in light of the recent uncertainty experienced by other companies in our industry, and expect revenues for the March quarter to be relatively flat, as compared to our December quarter," stated Uzi Sasson, Chief Financial Officer. 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. Safe Harbor Statement The foregoing press release contains forward-looking statements, including those related to diversification, growth, improved profit margins and expectations for revenues in the March 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 September 30, 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, except share data) (unaudited) December 31, March 31, 2005 2005 ------------- ---------- ASSETS Current assets: Cash and cash equivalents $ 77,173 $ 58,299 Accounts receivable, net 39,002 41,388 Inventories, net 51,746 51,411 Prepaid expenses 4,333 4,134 Deferred income taxes 6,806 6,649 ------------- ---------- Total current assets 179,060 161,881 Plant and equipment, net 39,305 27,814 Other assets 27,551 27,409 Deferred income taxes 2,460 2,787 ------------- ---------- Total assets $248,376 $219,891 ============= ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of capitalized lease obligations $ 2,199 $ 2,733 Notes payable to bank 862 -- Accounts payable 13,924 12,962 Accrued expenses and other liabilities 28,107 22,123 ------------- ---------- Total current liabilities 45,092 37,818 Long term obligations, net of current portion 14,035 4,566 Pension liabilities 10,860 12,230 ------------- ---------- Total liabilities 69,987 54,614 ------------- ---------- Common stock, $0.01 par value: Authorized: 80,000,000 shares; 34,450,014 issued and 33,971,012 outstanding on December 31, 2005 and 33,586,196 issued and 33,359,194 outstanding on March 31, 2005 345 336 Additional paid in capital 153,696 151,820 Notes receivable from stockholders (58) (355) Retained earnings 20,586 5,492 Accumulated other comprehensive income 3,820 7,984 ------------- ---------- Total stockholders' equity 178,389 165,277 ------------- ---------- Total liabilities and stockholders' equity $248,376 $219,891 ============= ========== IXYS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended December 31, December 31, -------------------- ------------------- 2005 2004 2005 2004 --------- --------- --------- --------- Net revenues $60,336 $66,258 $187,062 $187,597 Cost of goods sold 41,399 46,203 125,749 130,857 --------- --------- --------- --------- Gross profit 18,937 20,055 61,313 56,740 --------- --------- --------- --------- Operating expenses: Research, development and engineering 4,960 4,778 13,199 14,400 Selling, general and administrative 8,707 8,226 27,869 25,753 --------- --------- --------- --------- Total operating expenses 13,667 13,004 41,068 40,153 --------- --------- --------- --------- Operating income 5,270 7,051 20,245 16,587 Other income, net 742 488 1,953 269 --------- --------- --------- --------- Income before income tax provision 6,012 7,539 22,198 16,856 Income tax provision 1,601 2,790 7,104 6,405 --------- --------- --------- --------- Net income $ 4,411 $ 4,749 $ 15,094 $ 10,451 ========= ========= ========= ========= Net income per share - basic $ 0.13 $ 0.14 $ 0.45 $ 0.32 ========= ========= ========= ========= Weighted average shares used in per share calculation - basic 33,593 33,076 33,514 33,029 ========= ========= ========= ========= Net income per share - diluted $ 0.12 $ 0.14 $ 0.42 $ 0.30 ========= ========= ========= ========= Weighted average shares used in per share calculation - diluted 35,729 35,012 35,827 34,876 ========= ========= ========= ========= *T