IXYS Corporation reported results for its second quarter of fiscal year 2015, which ended September 30, 2014. Net revenues for the quarter ended September 30, 2014 were $86.4 million, up $534,000 from $85.9 million in net revenues for the September 2013 quarter. For the six months ended September 30, 2014, IXYS reported net revenues of $174.5 million, an increase of $17.4 million, or 11.1%, as compared to net revenues of $157.1 million for the same period in the prior fiscal year.
“Over the last year, organic growth has been achieved through a diversified product platform, strong customer relationships, new sales and marketing initiatives and increased cross-selling. Offering products across 90% of the power spectrum, we maintain our front-runner advantage in power semiconductors and ICs, while advancing our microcontrollers and ICs for power management and energy sustainable products. Additionally, we implemented our global manufacturing strategy through consolidation and outsourcing, and by seeking synergies and achieving better manufacturing utilization, all of which contributed to improved profitability,†commented Dr. Nathan Zommer, Chairman, CEO and Founder of IXYS.
Net income for the quarter ended September 30, 2014 was $5.7 million, or $0.18 per diluted share, an increase of $2.4 million, or 69.9%, as compared to net income of $3.4 million, or $0.11 per diluted share, for the same period in the prior fiscal year. Sequentially, net income in the September 2014 quarter increased by $2.2 million from net income of $3.6 million in the June 30, 2014 quarter.
Net income for the six months ended September 30, 2014 was $9.3 million, or $0.29 per diluted share, an increase of $4.0 million, or 73.9%, as compared to net income of $5.4 million, or $0.17 per diluted share, for the same period in the prior fiscal year.
The September 2014 quarter non-GAAP net income, which excludes the impact of expenses for the amortization of acquired intangible assets and stock compensation, was $7.6 million, or $0.23 per diluted share. This is an increase of $328,000, as compared to the non-GAAP net income for the same period in the prior fiscal year.
Gross profit for the quarter ended September 30, 2014 was $26.2 million, or 30.3% of net revenues, as compared to gross profit of $27.9 million, or 32.5% of net revenues, for the same quarter in the prior fiscal year. Sequentially, the gross profit margin rose by 1.9 percentage points from the June 2014 quarter.
“Improvements have been achieved through sales of higher-margin products, as well as cost cutting, consolidation of manufacturing for better efficiency, and prudent realization of our pricing strategy. Margin expansion will continue to be a focus for us going forward,†noted Uzi Sasson, President and Chief Financial Officer of IXYS.
Gross profit for the six months ended September 30, 2014 was $51.2 million, or 29.3% of net revenues, as compared to a gross profit of $49.0 million, or 31.2% of net revenues, for the same period in the prior fiscal year.
Cash and cash equivalents totaled $125.6 million at September 30, 2014, an increase of $26.9 million as compared to March 31, 2014. This increase includes an additional $30 million drawdown on our existing bank credit line. In the September 2014 quarter, the company declared a $0.035 per share dividend, highlighting the eighth consecutive quarter of dividends.
“Global market volatility persists, with modest growth potential in the U.S. offset by weakness in emerging markets and many European and Asian economies. As a result, our customer base is reluctant to provide long-term demand projections, instead placing orders on an as-needed basis. Many of our competitors face the same constraints. Without this visibility, we prefer to offer conservative guidance. We expect revenues in the December 2014 quarter to be somewhat lower than in the September 2014 quarter, as we enter the cyclically slower holiday season, punctuated by fewer selling days as well as customers seeking to rationalize their inventory and hold cash reserves prior to year end,†stated Mr. Sasson.
