IXYS Corp. reported net revenues of $72.3 million for the third fiscal quarter ended December 31, 2006, an increase of 19.8%, as compared with net revenues of $60.3 million for the same period in the prior fiscal year. This is the fourth consecutive quarter of revenue growth for the company, with the last two quarters being record revenue quarters. For the nine months ended December 31, 2006, IXYS reported net revenues of $211.9 million, an increase of 13.3% as compared with net revenues of $187.1 million for the same period in the prior fiscal year.
Gross profit was $22.5 million, or 31.1% of net revenues for the quarter ended December 31, 2006, as compared to gross profit of $18.9 million, or 31.4% of net revenues for the same quarter in the prior fiscal year. Gross profit for the nine months ended December 31, 2006 was $66.5 million, or 31.4% of net revenues, as compared to gross profit of $61.3 million, or 32.8% of net revenues, for the same period in the prior fiscal year.
Net loss for the quarter ended December 31, 2006 was $106,000 or $0.00 per diluted share, as compared to net loss of $47.1 million, or $1.40 per diluted share, for the same quarter in the prior fiscal year. Net income for the nine months ended December 31, 2006, was $28.0 million, or $0.80 per diluted share, as compared to net loss of $36.4 million, or $1.09 loss per diluted share, for the same period in the prior fiscal year.
The United States Court of Appeals for the Federal Circuit (the "Appeals Court") recently denied IXYS’ motion to stay the damage award and injunction issued by the United States District Court for Central California (the "District Court") in the patent infringement lawsuit filed by International Rectifier Corp.. Under the standard applicable to IXYS’ motion, the Appeals Court would have granted the motion only if it had concluded that there was a "strong likelihood" that IXYS would prevail in its appeal. The fact that the Appeals Court did not draw such conclusion does not prejudice IXYS’ appeal, which will continue.
As there is no effective stay on the District Court’s award of damages, IXYS has recognized the litigation provision, reflecting the impact of the District Court’s decision, set forth in its statements for the quarter ended December 31, 2006. The products covered by the injunction represented less than 2% of IXYS’ revenues in the 12 months ended December 31, 2006.
