IXYS Corporation Announces Results for the June 2014 Quarter

IXYS Corporation (NASDAQ:IXYS), an international power semiconductor and IC company, today reported results for its first quarter of fiscal year 2015, which ended June 30, 2014.

Net revenues for the quarter ended June 30, 2014 were $88.1 million, up $16.9 million, or 23.7%, from net revenues of $71.2 million in the prior year’s quarter.

Net income for the quarter ended June 30, 2014 was $3.6 million, or $0.11 per diluted share, an increase of $1.6 million over the net income of $2.0 million, or $0.06 per diluted share, in the prior year’s quarter. Sequentially, net income in the quarter ended June 30, 2014 increased by $3.4 million from net income of $132,000 in the March 31, 2014 quarter.

The June 30, 2014 quarter non-GAAP net income, which excludes the impact of charges for the amortization of acquired intangible assets and stock compensation, was $5.7 million, or $0.17 per diluted share, which was an increase of $3.1 million, as compared to the non-GAAP net income of $2.7 million, or $0.08 per diluted share, for the same period in the prior fiscal year.

Gross profit for the quarter ended June 30, 2014 was $25.0 million, or 28.4% of net revenues, an increase of $3.9 million as compared to gross profit of $21.1 million, or 29.7% of net revenues, for the same quarter in the prior fiscal year. Sequentially, gross profit margin percentages rose slightly from 28.2% in the March 2014 quarter to 28.4% in the June 2014 quarter.

“We continued our product diversification efforts, with more focus on growing our integrated circuit products worldwide to complement our power semiconductor business. Recognizing the growth of Asian markets, we have increased our outsourcing of some of our production to Asia. IXYS’ revenues have grown year to year, and bookings are beginning to ramp up,” noted Dr. Nathan Zommer, Founder and CEO of IXYS.

Cash and cash equivalents totaled $91.1 million at June 30, 2014, which is a decrease of $7.7 million as compared to March 31, 2014. The decrease in cash reflects a $15 million installment payment for IXYS’ acquisition of Samsung’s 4-bit and 8-bit microcontroller business in calendar year 2013. Normal cash generation is expected to fund the remainder of this acquisition.

In the quarter ended June 30, 2014, adjusted EBITDA, which excludes stock-based compensation expense, was $11.0 million, an increase of $4.5 million as compared to the same quarter in the prior year.

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

“We are pleased by the positive trends in IXYS’ business, as evidenced by the healthy book-to-bill ratio of 1.08. While many of our customers have expressed optimism about future business prospects, purchasing trends have yet to resume in full force. Additionally, the summer months are cyclically slow for the overall semiconductor industry. Therefore, we expect our revenues for the September 2014 quarter to be relatively flat as compared to the June 2014 quarter,” noted Mr. Uzi Sasson, President and Chief Financial Officer.

Non-GAAP Information

Included above and within the attached schedules are certain non-GAAP financial figures. During the quarter ended June 30, 2014, the company incurred non-cash expenses, including those associated with amortization of intangible assets and stock compensation. Adjusting the net income in the June 30, 2014 quarter 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 June 30, 2014 quarter 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 growth, bookings, book-to-bill ratio, business prospects, purchasing trends, cyclicality and our revenues in the September 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, changes in product mix, increased competition, cash flow difficulties, unanticipated technological hurdles, manufacturing challenges and 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-K for the fiscal year ended March 31, 2014. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements.