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IXYS Announces Results for the Second Fiscal Quarter Ended September 30, 2012

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MILPITAS, Calif.--(BUSINESS WIRE)--

IXYS Corporation (NASDAQ: IXYS), an international power semiconductor and IC company, today announced results for its second fiscal quarter ended September 30, 2012.

Net revenues in the quarter ended September 30, 2012 were $68.5 million, a decrease of $30.5 million, or 30.9%, as compared to net revenues of $99.0 million for the same period in the prior fiscal year.

For the six months ended September 30, 2012, IXYS reported net revenues of $149.3 million, a decrease of $51.5 million, or 25.6%, as compared with net revenues of $200.8 million for the same period in the prior fiscal year.

“Continued weakness in the industrial market has driven our revenues down. Our other traditional markets, which include the telecommunications and medical markets, have also shown weakness in demand. However, given our conservative approach to uncertainty, we braced IXYS for such conditions, refrained from any acquisition and concentrated on profitability, while continuing our focus on R&D and new products introductions,” commented Dr. Nathan Zommer, Chairman and CEO of IXYS. “It is important to note that we continue to retain our strong customer base in the industrial, alternative energy, medical, telecom and transportation markets through a pipeline of new products and design wins. As these markets rebound from the current slowdown, we are poised to return to our growth pattern with higher profitability.”

Cash and cash equivalents totaled $105.3 million at September 30, 2012, an increase of $6.1 million as compared to March 2012. The company had a profitable quarter, with record cash. During the quarter ended September 30, 2012, the company purchased about 221,000 shares of its common stock for about $2.1 million. IXYS can still purchase approximately 1.1 million shares under the current buyback programs.

“In addition to generating significant cash from operations, which resulted in another record quarter end cash balance, IXYS has been proactively monitoring its expenses, evidenced by the fact that our SG&A expenses, expressed in absolute dollars, have been the lowest in the last five quarters,” noted Uzi Sasson, President and CFO of IXYS.

Net income for the quarter ended September 30, 2012 was $2.4 million, or $0.07 per diluted share, as compared to a net income of $10.9 million, or $0.34 per diluted share, for the same quarter in the prior fiscal year. Net income for the six months ended September 30, 2012 was $8.4 million, or $0.26 per diluted share, as compared to a net income of $20.9 million, or $0.64 per diluted share, for the same period in the prior fiscal year.

Gross profit was $20.5 million, or 30.0% of net revenues, for the quarter ended September 30, 2012, as compared to gross profit of $31.5 million, or 31.8% of net revenues, for the same quarter in the prior fiscal year.

Gross profit for the six months ended September 30, 2012 was $47.7 million, or 31.9% of net revenues, as compared to a gross profit of $66.5 million, or 33.1% of net revenues, for the same period in the prior fiscal year.

“The credit constraints in Europe and the dramatic slowdown in Asia have adversely affected our performance,” stated Uzi Sasson, President and CFO of IXYS. “The feedback that we get from our suppliers and customers indicates that market volatility still prevails; therefore, we expect revenues for the December 2012 quarter to be relatively flat as compared to the revenues for the September 2012 quarter.”

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 2,000 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 customer base, new products, design wins, a rebound, a return to our growth pattern with higher profitability, feedback, market volatility and our expectations for revenues during the December 2012 quarter. Actual results may vary materially from those contained in the forward-looking statements, due to adverse macroeconomic events in Europe, Asia or the United States, changes in customer delivery schedules, the cancellation of orders, an unanticipated decline in our business, increased competition, cash flow difficulties, unanticipated technological hurdles, adverse changes in customer demand and increasing product costs, among other things. Further information on other factors that could affect IXYS is detailed and included in reports IXYS filed with the Securities and Exchange Commission including its Form 10-Q for the quarter ended June 30, 2012. 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,
2012 2012
ASSETS
Current assets:
Cash and cash equivalents $ 105,251 $ 99,113
Accounts receivable, net 38,130 48,420
Other receivables 2,039 853
Inventories, net 89,583 86,240
Prepaid expenses and other current assets 4,530 6,081
Deferred income taxes   8,410     8,450
Total current assets 247,943 249,157
Plant and equipment, net 52,760 56,071
Other assets 16,178 13,053
Deferred income taxes   25,415     25,629
 
Total assets $ 342,296   $ 343,910
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities:
Current portion of capitalized lease obligations $ 2,535 $ 2,873
Current portion of notes payable to bank 961 1,696
Accounts payable 14,215 14,427
Accrued expenses and other current liabilities   17,637     22,023
Total current liabilities 35,348 41,019

Capitalized lease and other long term obligations, net of current portion

31,664 33,783
Pension liabilities   14,288     15,001
Total liabilities   81,300     89,803
 
Common stock 379 378
Additional paid-in capital 142,299 141,445
Retained earnings 118,479 110,194
Accumulated other comprehensive income   (161 )   2,090
Stockholders' equity   260,996     254,107
 
Total liabilities and stockholders' equity $ 342,296   $ 343,910
 

 
IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
  Three Months Ended   Six Months Ended
September 30, September 30,
2012   2011 2012   2011
   
Net revenues $ 68,461 $ 99,004 $ 149,318 $ 200,782
Cost of goods sold   47,943     67,526   101,611     134,269
Gross profit   20,518     31,478   47,707     66,513
Operating expenses:
Research, development and engineering 6,752 6,504 13,401 13,437
Selling, general and administrative 9,905 10,186 21,092 21,315
Amortization of intangibles   484     603   1,124     1,245
Total operating expenses   17,141     17,293   35,617     35,997
Operating income 3,377 14,185 12,090 30,516
Other income (expense), net   56     1,460   584     851
Income before income tax provision 3,433 15,645 12,674 31,367
Provision for income tax   1,076     4,698   4,310     10,444
Net income $ 2,357   $ 10,947 $ 8,364   $ 20,923
 
Net income per share - basic $ 0.08   $ 0.35 $ 0.27   $ 0.67
 
Weighted average shares used in per share calculation - basic   31,310     31,383   31,331     31,445
 
Net income per share - diluted $ 0.07   $ 0.34 $ 0.26   $ 0.64
 
Weighted average shares used in per share calculation - diluted   31,975     32,545   32,192     32,669
 

IXYS Corporation
Uzi Sasson, 408-457-9000
President & CFO

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