Quarter-End Highlights:

  • Gross profit margin for the quarter ended September 30, 2016 was 32.4%, in line with gross profit margin for the September 2015 quarter. Importantly, the gross profit margin increased by 260 basis points from 29.8% gross profit margin in the June 2016 quarter. 
  • Net income of $3.9 million for the September 2016 quarter was an increase of $662,000, or 20.2%, as compared to $3.3 million of net income in the prior year comparable quarter. Sequentially, the September 2016 quarter net income increased by $916,000, or 30.3%, as compared to $3.0 million of net income in the June 2016 quarter.

LEIDEN, Netherlands and MILPITAS, Calif., Nov. 02, 2016 (GLOBE NEWSWIRE) -- IXYS Corporation (NASDAQ:IXYS), an international power semiconductor and IC company, today announced financial results for its second fiscal quarter ended September 30, 2016.  

Net revenues for the quarter were $78.6 million versus $80.3 million in net revenues for the September 2015 quarter. For the six months ended September 30, 2016, IXYS reported net revenues of $159.3 million, as compared to net revenues of $162.3 million for the same period in the prior fiscal year.

“We are pleased with the increased profitability of IXYS while investing in new products and improved manufacturing efficiencies. We continue to penetrate new applications in the transportation, medical and IoT markets,” said Dr. Nathan Zommer, Founder and CEO of IXYS. “IXYS has focused on designing higher margin products, benefitting from The World of IXYSTM marketing campaign. Today, we offer the total customer solution, from microcontrollers to driver ICs to power semiconductors, which may continue to drive better gross margins going forward.”

Net income for the quarter ended September 30, 2016 was $3.9 million, or $0.12 per diluted share, an increase of $662,000, or 20.2%, as compared to net income of $3.3 million, or $0.10 per diluted share, for the September 2015 quarter. Sequentially, net income in the September 2016 quarter increased by $916,000, or 30.3%, from net income of $3.0 million in the June 2016 quarter. The September 2016 quarter non-GAAP net income, which excludes the impact of charges for the amortization of acquired intangible assets and stock compensation, was $5.1 million, or $0.16 per diluted share, as compared to the non-GAAP net income of $5.2 million, or $0.16 per diluted share, for the same period in the prior fiscal year.

Net income for the six months ended September 30, 2016 was $7.0 million, or $0.22 per diluted share, an increase of $696,000, or 11.1%, as compared to net income of $6.3 million, or $0.19 per diluted share, for the same period in the prior fiscal year. For the six months ended September 30, 2016, non-GAAP net income, which excludes the impact of charges for the amortization of acquired intangible assets and stock compensation, was $9.7 million, or $0.30 per diluted share, as compared to the non-GAAP net income of $10.2 million, or $0.31 per diluted share, for the same period in the prior fiscal year.

Gross profit for the quarter ended September 30, 2016 was $25.5 million, or 32.4% of net revenues, as compared to gross profit of $26.0 million, or 32.4% of net revenues, for the same quarter in the prior fiscal year.  On a sequential basis, the gross profit margin increased by 260 basis points from 29.8% of net revenues, or $24.0 million of gross profit, in the June 2016 quarter. Gross profit for the six months ended September 30, 2016 was $49.4 million, or 31.0% of net revenues, as compared to the gross profit of $51.6 million, or 31.8% of net revenues, for the same period in the prior fiscal year.

Adjusted EBITDA was $10.8 million for the September 2016 quarter and $20.4 million for the six months ended September 30, 2016.

Cash and cash equivalents totaled $153.8 million at September 30, 2016, after generating $5.9 million in cash from operations during the quarter.

“IXYS is focused on three major objectives: increase gross profit margins, invest in research and development to meet evolving market trends and decrease expenses. Our ability to control internal strategy mitigates unpredictable external forces, namely, global market activity. We have confidence that our strategic growth initiatives, in combination with our operational efficiencies, will lead to further success in the months ahead,” stated Mr. Uzi Sasson, CEO and President of IXYS. “Therefore, we expect revenues in the December 2016 quarter to increase slightly from the September 2016 quarter.”

Non-GAAP Information

Included above and within the attached schedules are certain non-GAAP financial figures. The company incurred non-cash charges, including those associated with the amortization of intangible assets and stock compensation. Adjusting the net income to exclude the impact of the amortization of intangible assets and stock compensation expenses and the applicable tax at the effective tax rate for the respective periods results in a financial presentation for the company without the effect of these non-cash charges. Similarly, adjusted EBITDA reflects the exclusion of depreciation and amortization, stock compensation expenses, 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 telecommunication industries. IXYS, with its subsidiaries, is a worldwide pioneer in the development of power semiconductors, solid state relays, high voltage integrated circuits, 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 play a vital role in reducing energy costs and consumption by optimizing the energy efficiency of everyday products. IXYS semiconductors are also key to developments of new medical devices and systems that provide unique solutions in diagnostics and therapy for the leading medical equipment OEMs worldwide. 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 new applications, better gross margins, our three major objectives, success in the months ahead and our revenues in the December 2016 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, increasing product costs or changes in currency exchange rates, 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 June 30, 2016. 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)      
      September 30, March 31,     
       2016   2016      
  ASSETS           
Current assets:            
  Cash and cash equivalents   $  153,804  $  155,806      
  Restricted cash       274     277      
  Accounts receivable, net       38,997     38,440      
  Inventories, net       89,696     89,604      
  Prepaid expenses and other current assets     4,189     4,203      
   Total current assets    286,960   288,330      
Property, plant and equipment, net      43,678     42,623      
Other assets       64,197     63,724      
Deferred income taxes       27,865     28,024      
              
   Total assets    $  422,700  $  422,701      
              
 LIABILITIES AND STOCKHOLDERS' EQUITY        
              
Current liabilities:            
  Current portion of notes payable to bank     1,087     1,804      
  Accounts payable       10,913     11,416      
  Accrued expenses and other current liabilities   24,542   21,290      
   Total current liabilities    36,542   34,510      
Notes payable and other liabilities, net of current portion  84,945   92,589      
Pension liabilities     15,424   16,307      
   Total liabilities    136,911   143,406      
              
Common stock     383   382      
Additional paid-in capital       155,342     152,200      
Retained earnings     152,617   146,979      
Accumulated other comprehensive (loss)     (22,553)  (20,266)     
   Stockholders' equity    285,789   279,295      
              
   Total liabilities and stockholders' equity $  422,700  $  422,701      
              
   
  IXYS CORPORATION
 
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
    (in thousands, except per share data)  
    (unaudited)
 
   
      Three Months Ended Six Months Ended 
      September 30, September 30, 
       2016   2015   2016   2015  
              
Net revenues    $  78,629  $  80,257  $  159,267  $  162,304  
Cost of goods sold     53,174   54,245   109,818   110,690  
 Gross profit     25,455   26,012   49,449   51,614  
              
Operating expenses:            
 Research, development and engineering   7,848   7,804   15,758   15,487  
              
 Selling, general and administrative   10,140   9,801   20,178   20,437  
              
 Amortization of intangibles      696     1,374     1,713     2,953  
              
  Total operating expenses  18,684   18,979   37,649   38,877  
              
 Operating income    6,771   7,033   11,800   12,737  
              
Other (expense) income, net    24   (1,255)  266   (2,312) 
              
 Income before income tax provision   6,795   5,778   12,066   10,425  
              
Provision for income tax     2,860   2,505   5,112   4,167  
              
Net income     $  3,935  $  3,273  $  6,954  $  6,258  
              
Net income per share - basic   $  0.12  $  0.10  $  0.22  $  0.20  
              
Weighted average shares used in per share calculation - basic  31,490   31,651   31,447   31,769  
              
Net income per share - diluted   $  0.12  $  0.10  $  0.22  $  0.19  
              
Weighted average shares used in per share calculation - diluted  32,145   32,380   32,074   32,627  
              

 

Reconciliation of net income to non-GAAP net income (in thousands, unaudited):      
 Three Months Ended Six Months Ended 
  September 30, September 30, 
   2016   2015   2016   2015  
      
Net income $  3,935  $  3,273  $  6,954  $  6,258  
      
Amortization of intangible assets  696   1,374   1,713   2,953  
Stock compensation expense  874   951   1,729   1,691  
Tax on stock compensation expense  (368)  (412)  (733)  (676) 
Non-GAAP net income $  5,137  $  5,186  $  9,663  $  10,226  
          
     
Reconciliation of net income per share, diluted to non-GAAP net income per share, diluted (unaudited):  
  Three Months Ended Six Months Ended 
  September 30, September 30, 
   2016   2015   2016   2015  
      
Net income per share, diluted $  0.12  $  0.10  $  0.22  $  0.19  
      
Amortization of intangible assets  0.02   0.04   0.05   0.09  
Stock compensation expense  0.03   0.03   0.05   0.05  
Tax on stock compensation expense  (0.01)  (0.01)  (0.02)  (0.02) 
Non-GAAP net income per share, diluted $  0.16  $  0.16  $  0.30  $  0.31  
     
Weighted average shares used in per share calculation, diluted 32,145   32,380   32,074   32,627  
     

 

Adjusted EBITDA (in thousands, unaudited)      
 Three Months Ended Six Months Ended
 September 30, September 30,
  2016   2015   2016   2015 
Net income$  3,935  $  3,273  $  6,954  $  6,258 
        
Add:       
  Income tax expense   2,860     2,505     5,112     4,167 
  Interest expense   615     284     1,250     598 
  Depreciation and amortization   2,535     3,361     5,367     7,145 
  Stock compensation expense   874     951     1,729     1,691 
Adjusted EBITDA$  10,819  $  10,374  $  20,412  $  19,859 
     


 

 

Contact:          
Uzi Sasson
President & CEO
IXYS Corporation
1590 Buckeye Drive
Milpitas, California 95035
(408) 457-9000