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IXYS Corporation Reports Record Quarterly Revenues in First Fiscal Quarter Ended June 30, 2010

^{Published on 2010-07-29 13:41:36 - Market Wire}
 

MILPITAS, Calif. & BIEL, Switzerland--([ BUSINESS WIRE ])--IXYS Corporation (NASDAQ:IXYS), an international power and IC semiconductor company, today reported record quarterly net revenues of $84.9 million for the first fiscal quarter ended June 30, 2010, an increase of $36.0 million, or 73.6%, as compared with the net revenues of $48.9 million for the same period in the prior fiscal year. Of equal importance, the record revenues of $84.9 million mark the fourth consecutive quarter of revenue growth and beat last quartera™s revenues by $8.3 million, or 10.9%.

"While IXYSa™ proactive business strategy dissipated the effects of the recent recession, we remained concerned about any protracted market volatility"

Net income for the quarter ended June 30, 2010 was $6.5 million, or $0.21 per diluted share, as compared to a net loss of $3.9 million, or $0.13 loss per share, for the same quarter in the prior fiscal year.

The positive uptick was powered by three major trends: 1) increased sales in all major geographic areas, 2) strong sales in industrial, commercial and communication infrastructure, and 3) improved operating margins.

aWe delivered results consistent with our growth plans, as demonstrated also in the prior quarter. The investment we made in technology and new products, including the recently added Zilog MCUs, added to the strong growth in revenues, gross margins and profits,a commented Dr. Nathan Zommer, Chairman & CEO of IXYS Corporation. aWe are transforming IXYS into a higher gross margin power semiconductor and specialized control IC company, in line with the demands of our worldwide customers. Much of the success can be attributed to increased demand internationally for more efficient motor control, energy efficient power management, renewable wind and solar energy, medical diagnosis and treatment equipment using higher voltage technology, better mass transit systems and internet-based telecommunications.a

Gross profit was $29.5 million, or 34.7% of net revenues, for the quarter ended June 30, 2010, as compared to gross profit of $10.3 million, or 21.2% of net revenues, for the same quarter in the prior fiscal year. Gross margins increased 2.3 percentage points over the March 2010 quarter, marking five consecutive quarters of margin growth.

The company launched several new products during the quarter, including:

• High power LED drivers for lighting and LCD backlighting in consumer, industrial and medical displays
• Ziloga™s ZMOTION control technology for motion activated lights, doors, escalators and occupancy-based power management products
• Higher operating temperature bipolar power modules for industrial customers

Backlog was $164.9 million at June 30, 2010, as compared to $77.1 million at June 30, 2009. Backlog increased $39.4 million from March 31, 2010 to June 30, 2010. Bookings were $124.2 million for the June 30, 2010 quarter, as compared to $49.1 million for comparable quarter of last year, a 153.0% increase. On a quarter over quarter basis, bookings jumped $25.7 million, a 26.0% increase from the March 2010 quarter. Backlog and bookings reflect orders received on terms where product may be shipped within 12 months.

aWhile IXYSa™ proactive business strategy dissipated the effects of the recent recession, we remained concerned about any protracted market volatility,a said Uzi Sasson, IXYSa™ President and Chief Financial Officer. aMany of our customers take vacations during the summer months and reduce the rate at which they will accept shipments. Furthermore, we are faced with uncertainty regarding currency exchange rates and their impact on our revenues during the period. Therefore, we project revenues for the quarter ending September 30, 2010 to be relatively flat to slightly higher as compared to the quarter ended June 30, 2010.a

ABOUT IXYS CORPORATION

Since its founding in Silicon Valley, IXYS Corporation has been developing technology-driven products to improve power conversion efficiency, generate clean energy, improve automation, and provide advanced products for the transportation, medical and telecommunication industries. IXYS is a worldwide pioneer in the development of power semiconductors and high voltage integrated circuits (HVIC) that are necessary in reducing the worlda™s dependence on fossil fuels.

Diminishing natural resources, demand for cheap energy and environmental directives for energy efficiency represent a significant challenge. IXYSa™ 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 provider of semiconductors.

Additional information may be obtained by visiting IXYSa™ 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 growth plans, the transformation of IXYS, increased demand internationally, book-to-bill ratio, backlog, bookings, protracted market volatility and the revenue projections for the quarter ending September 30, 2010. 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, capacity limits on our ability to manufacture our products, cash flow difficulties, unanticipated technological hurdles, adverse changes in customer demand, difficulties in gaining market acceptance of new products, increasing product costs and unexpected increases in operating expenses, among other things. Further information on other factors that could affect IXYS is detailed and included in IXYSa™ Form 10-K for the year ended March 31, 2010, as filed with the Securities and Exchange Commission. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements.