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

IXYS Corporation (NASDAQ: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.