IXYS Corporation Announces Results for the December 2014 Quarter

IXYS Corporation (NASDAQ:IXYS), an international power semiconductor and IC company, today reported results for its third quarter of fiscal year 2015, which ended December 31, 2014.

Net revenues for the quarter ended December 31, 2014 were $81.3 million versus $89.3 million in net revenues for the same period in the prior fiscal year. For the nine months ended December 31, 2014, IXYS reported net revenues of $255.8 million, an increase of $9.4 million, or 3.8%, as compared to net revenues of $246.4 million for the same period in the prior fiscal year.

“We continue to focus our company on higher gross margin products by making investments in R&D, especially in integrated circuits and microcontrollers, as they complement our global power semiconductor business. Our gross margins increased sequentially, and even with lower revenues, translated to strong growth in our quarterly and year-to-date net income and increased stockholder equity,” commented Dr. Nathan Zommer, Chairman, CEO and Founder of IXYS.

“Through the World of IXYS marketing campaign, we have improved selling efficiencies and better market penetration, as we present customers with a comprehensive product portfolio, replete with power semiconductors, ICs, MCUs and more. With these products, we are able to offer integrated solutions ranging from electrical controls to the broad spectrum of power semiconductors for ‘Internet of Things’ (IoT) solutions,” noted Dr. Zommer.

Net income for the quarter ended December 31, 2014 was $6.6 million, or $0.21 per diluted share, an increase of $6.1 million, or about 1,100%, as compared to net income of $552,000, or $0.02 per diluted share, for the same period in the prior fiscal year. Diluted earnings per share in the December 2014 quarter increased tenfold over the same period in the prior fiscal year.

Net income for the nine months ended December 31, 2014 was $15.9 million, or $0.50 per diluted share, an increase of $10.0 million, or about 170%, as compared to net income of $5.9 million, or $0.19 per diluted share, for the same period in the prior fiscal year.

The December 2014 quarter non-GAAP net income, which excludes the impact of expenses for the amortization of acquired intangible assets and stock compensation, was $8.7 million, or $0.27 per diluted share. This is an increase of $4.6 million, as compared to the non-GAAP net income of $4.1 million, or $0.13 per diluted share, for the same period in the prior fiscal year.

Gross profit for the quarter ended December 31, 2014 was $25.5 million, or 31.4% of net revenues, as compared to gross profit of $25.8 million, or 28.9% of net revenues, for the same quarter in the prior fiscal year.

Gross profit for the nine months ended December 31, 2014 was $76.7 million, or 30.0% of net revenues, an increase of $1.9 million, as compared to a gross profit of $74.8 million, or 30.4% of net revenues, for the same period in the prior fiscal year.

Cash and cash equivalents totaled $113.0 million at December 31, 2014, an increase of $14.6 million as compared to March 31, 2014. In the December 2014 quarter, the company declared a $0.035 per share dividend, highlighting the ninth consecutive quarter of dividends.

“We are pleased that the December 2014 quarter surpassed prior year results in net income, EPS and gross profit margin. IXYS’ nine-month performance is equally encouraging. However, we experienced a decline in revenues for the December quarter, partially caused by the cyclical slowdown during the holiday season,” noted Uzi Sasson, President and CFO of IXYS. “Customers have been reluctant to place forward-looking orders, as foreign currency weakness and slowing growth in Asia have weighed on the economic outlook. However, we have maintained a healthy backlog and experienced strong bookings at the end of the December 2014 quarter. Despite these mitigating factors, we remain cautious and expect revenues in the March 2015 quarter to be relatively flat as compared to the December 2014 quarter.”

Non-GAAP Information

Included above and within the attached schedules are certain non-GAAP financial figures. During the third quarter of fiscal 2015, ended December 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 December 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. Management believes non-GAAP net income and non-GAAP net income per share 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 and non-GAAP net income per share 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 our focus on higher gross margins, our backlog, our bookings and our revenues in the March 2015 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 September 30, 2014. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements.