IXYS Corporation reported results for its third quarter of fiscal year 2016, which ended December 31, 2015. Net revenues for the quarter ended December 31, 2015 were $75.1 million, a decrease of $6.2 million, or 7.6%, as compared to net revenues of $81.3 million in the December 2014 quarter. For the nine months ended December 31, 2015, IXYS reported net revenues of $237.4 million, a decrease of $18.4 million, or 7.2%, as compared to net revenues of $255.8 million for the same period in the prior fiscal year.
“With the slowdown in the Chinese economy and other regions, quarterly revenues declined. However, with our diversified product lines and geographic reach, we expect to weather this period and increase revenues going forward. Importantly, we had no significant customer attrition; rather, the scope of product purchasing was slower during the holiday period, as is common in our industry,†commented Dr. Nathan Zommer, Chairman, CEO and Founder of IXYS. “We expect that our ongoing R&D investments and the successful design wins of our existing and new products will result in improved revenues and profitability for IXYS in future periods.â€
Net income for the quarter ended December 31, 2015 was $2.3 million, or $0.07 per diluted share, a decrease of $4.3 million, as compared to net income of $6.6 million, or $0.21 per diluted share, for the same period in the prior fiscal year. Net income for the nine months ended December 31, 2015 was $8.5 million, or $0.26 per diluted share, a decrease of $7.4 million, as compared to net income of $15.9 million, or $0.50 per diluted share, for the same period in the prior fiscal year.
Gross profit for the quarter ended December 31, 2015 was $24.0 million, or 32.0% of net revenues, as compared to a gross profit of $25.5 million, or 31.4% of net revenues, for the same quarter in the prior fiscal year. Our gross profit margin increased by 60 basis points this quarter over the comparable period in the prior fiscal year.
Gross profit for the nine months ended December 31, 2015 was $75.6 million, or 31.9% of net revenues, as compared to a gross profit of $76.7 million, or 30.0% of net revenues, for the same period in the prior fiscal year. This is an increase of 190 basis points in gross profit margin over the comparable period in the prior fiscal year.
“Despite the difficult market environment, we have been able to achieve gross profit margin expansion over the prior year’s comparable quarter and nine month period. We also held the line on our operating expenses despite a substantial increase in our R&D spending, which will encourage future product sales,†stated Mr. Uzi Sasson, President and CFO of IXYS.
“Due to global market volatility customers continue to rely on short-lead time product deliveries, which limit our visibility of buying patterns. We are constantly working with customers to increase their inventory and expect that our sales and marketing efforts will bear fruit in the coming quarters. Therefore, we expect revenues in the March 2016 quarter to be modestly higher when compared to those of the December 2015 quarter,†Sasson concluded.
