News

# IXYS Corp. Announces December Quarter Results

February 05, 2009 by Jeff Shepard

IXYS Corp. reported net revenues of $58.3 million for the third fiscal quarter ended December 31, 2008 as compared with net revenues of$73.1 million for the same period in the prior fiscal year. For the nine months ended December 31, 2008, IXYS reported net revenues of $215.3 million, as compared with net revenues of$225.2 million for the same period in the prior fiscal year.

"The December 2008 quarter proved challenging, as we faced a global economic slowdown. Keenly aware of constrained credit markets and recessionary environments, IXYS took proactive steps to adjust its plants and workforce. This resulted in a profitable quarter from operations, excluding the one-time charges. We continued our robust new product introductions and saw growth in some of our higher margin products," stated Dr. Nathan Zommer, Chairman and CEO of IXYS.

Gross profit was $12.7 million, or 21.7% of net revenues, for the quarter ended December 31, 2008 as compared to gross profit of$20.8 million, or 28.4% of net revenues, for the same quarter in the prior fiscal year. Gross profit for the nine months ended December 31, 2008 was $61.2 million, or 28.4% of net revenues, as compared to a gross profit of$63.1 million, or 28.0% of net revenues, for the same period in the prior fiscal year.

Net loss for the quarter ended December 31, 2008 was $4.0 million, or$0.13 loss per diluted share, as compared to net income of $2.2 million, or$0.07 income per diluted share, for the same quarter in the prior fiscal year. Net income for the nine months ended December 31, 2008 was $7.6 million, or$0.23 per diluted share, as compared to net income of $13.2 million, or$0.39 per diluted share, for the same period in the prior fiscal year.

The results for the quarter ended December 31, 2008 included pre-tax adjustments of $3.7 million ($3.0 million, after tax effects) for impairment of goodwill related to the Clare acquisition and $3.0 million ($1.9 million, after tax effects) for inventory write-downs, which are in the nature of one-time events. Excluding the impact of these one-time adjustments, net income for the quarter ended December 31, 2008 would have been $940,000, or$0.03 per share, diluted, as compared to what was a net income of $2.2 million, or$0.07 per diluted share, for the same quarter in the prior fiscal year.

"Dictated by generally accepted accounting principles, management concluded that the $3.7 million goodwill remaining from the Clare acquisition was impaired, therefore it was written off. Furthermore, we examined our inventory. Applying generally accepted accounting principles, we took an additional one-time charge in the quarter of about$3.0 million to recognize inventory exposure. Except for these one-time charges, our net income would have been $940,000 or$0.03 per diluted share," stated Uzi Sasson, COO and CFO. "Due to global economic declines, some of our customers tapered back on purchase orders and delayed previously scheduled deliveries. In the face of on-going market volatility, we expect revenues in the March 2009 quarter to be relatively flat, as compared to the December 2008 quarter."