SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
(x) Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1995
or
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission File Number 0-12718
SUPERTEX, INC.
(Registrant)
Incorporated in the State of California
I.R.S. Employer Identification Number 94-2328535
1235 Bordeaux Drive, Sunnyvale, California 94089
(Address of Principal Executive Offices)
Telephone: (408) 744-0100
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months or for such shorter period that the registrant
was required to file such reports, and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
As of October 12, 1995, 11,909,371 shares of the Registrant's common stock were
issued and outstanding.
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
SUPERTEX, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
<CAPTION>
Three Months Ended Six Months Ended
Sep. 30, Oct. 1, Sep. 30, Oct. 1,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net Sales $ 10,359 $ 7,644 $ 19,516 $ 14,884
Cost and expenses:
Cost of sales 5,422 3,804 10,103 7,441
Research and development 1,321 1,143 2,604 2,090
Selling, general and administration 1,431 1,285 2,694 2,513
Total cost and expenses 8,174 6,232 15,401 12,044
Income from operations 2,185 1,412 4,115 2,840
Other income:
Interest income 250 172 541 336
Other income, net 57 18 105 23
Income before provision for
income taxes 2,492 1,602 4,761 3,199
Provision for income taxes 773 433 1,476 864
Net income $ 1,719 $ 1,169 $ 3,285 $ 2,335
Net income per share $ 0.14 $ 0.10 $ 0.27 $ 0.20
Shares used in per share computation 12,307 11,869 12,275 11,839
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
SUPERTEX, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
<CAPTION>
(unaudited)
Sep. 30, 1995 Mar. 31, 1995
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 442 $ 4,437
Short term investments 18,563 15,019
Trade receivables,net of allowances of $347 and $487 6,841 5,800
Other receivables 254 352
Inventories 7,226 6,637
Deferred income taxes 1,456 1,455
Prepaid expenses 293 169
Total current assets 35,075 33,869
Property and equipment, net 5,927 3,441
TOTAL ASSETS $ 41,002 $ 37,310
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES
<S> <C> <C>
Current liabilities:
Trade accounts payable $ 2,887 $ 2,762
Accrued salaries, wages and employee benefits 1,427 1,409
Income taxes payable 1,064 1,014
Other accrued liabilities 572 467
Deferred income on shipment to distributors 625 494
Total current liabilities 6,575 6,146
SHAREHOLDERS' EQUITY
Preferred stock, no par value -
10,000,000 shares authorized, none outstanding -- --
Common stock, no par value -
30,000,000 shares authorized, issued and
outstanding 11,909,371 and 11,893,411 18,235 18,173
Retained earnings 16,192 12,991
Total shareholders' equity 34,427 31,164
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 41,002 $ 37,310
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
SUPERTEX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
<CAPTION>
Six Months Ended
Sep. 30, Oct. 1,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 3,285 $ 2,335
Non-cash adjustments to net income:
Depreciation and amortization 670 465
Provision for doubtful accounts and sales returns 140 336
Provision for excess and obsolete inventories 276 (192)
Loss on disposal of assets 0 6
Changes in operating assets and liabilities:
Accounts receivable (1,083) (879)
Inventories (865) (370)
Prepaid expenses (124) (61)
Trade accounts payable and accrued expenses 247 136
Income taxes payable 50 (143)
Deferred income on shipment to distributors 131 (9)
Total adjustments (558) (711)
Net cash provided by operating activities 2,727 1,624
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment (3,156) (1,070)
Purchases of short term investments (22,563) --
Proceeds from maturities of short term investments 19,019 --
Net cash used in investing activities (6,700) (1,070)
CASH FLOWS FROM FINANCING ACTIVITIES
Stock options exercised 78 43
Repurchase of stock (100) 0
Net cash provided by financing activities (22) 43
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (3,995) 597
CASH AND CASH EQUIVALENTS
Beginning of period 4,437 17,416
End of period $ 442 $ 18,013
<FN>
See accompanying notes.
</TABLE>
<PAGE>
SUPERTEX, INC.
NOTES TO FINANCIAL STATEMENTS
Note 1
The information for the three months and six months ended September 30, 1995,
is unaudited, but includes all adjustments (consisting of normal recurring
adjustments) which the Company considers necessary for a fair presentation of
the results of operations for those periods.
The year-end condensed balance sheet data was derived from audited financial
statements, but does not include all disclosures required by generally accepted
accounting principles. These financial statements should be read in conjunction
with the audited financial statements of Supertex, Inc. for the year ended
April 1, 1995, which are included in the Annual Report on Form 10-K (File
Number 0-12718).
Interim results are not necessarily indicative of results for the full fiscal
year.
Inventories consisted of:
(in thousands)
Sep. 30, 1995 Mar. 31, 1995
(unaudited)
Finished Goods $ 1,070 $ 901
Work in Progress 4,908 4,699
Raw Materials 1,248 1,037
Net Inventory $ 7,226 $ 6,637
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. - Management's Discussion and Analysis of Financial Condition and
Results of Operations.
RESULTS OF OPERATIONS:
NET SALES
Net sales for the second quarter ended September 30, 1995 increased 36% to
$10,359,000 from $7,644,000 of the same quarter last year. Six months net sales
of $19,516,000 increased 31% from the same period last year of $14,884,000.
Continued strength in our customers' markets contributed to this increase in
sales. Approximately 45% of Supertex's shipments were to international
customers during the six months ended September 30, 1995.
GROSS MARGIN
Gross margin for the second quarter and six months were 48%, compared with
50% for the same quarter and six months of the prior year. A change in the
product mix, with resultant higher cost of goods manufactured contributed to
this small decrease in gross margin as some of the new products are undergoing
learning curve ramp-up issues. Manufacturing costs are expected to be
relatively stable from period to period, with small variations of a few
percentage points from one period to another as the product mix for a particular
period changes slightly.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the quarter ended September 30,
1995 were 14% of net sales, a decrease from 17% for the same period of the prior
year. For the six months ended September 30, 1995, SG&A expenses were 14% of
net sales compared with 17% for the same period last year. The Company
benefited from the economy of scale of higher sales volume this year as dollar
expenditure in this category increased by a smaller percentage amount than the
percentage increase in net sales.
RESEARCH AND DEVELOPMENT
As a percentage of net sales, R&D expenses were 13% for the three months ended
September 30, 1995, compared with 15% for the same period last year. For the
six months ended September 30, 1995, R&D expenses were 13% of net sales,
compared with 14% for the first six months of last year. Dollar expenditures in
this category increases moderately period to period, as the company develops
more new products each year. The Company intends to continue to invest heavily
in its new product and process development efforts.
INTEREST AND OTHER INCOME
Interest and other income for the second quarter of the current year was
$307,000, a 61% increase from $190,000 for the same period last year. For the
six months ended September 30, 1995, interest and other income also increased
80% from the corresponding period of the prior year. Higher interest rates,
combined with increased cash available for short-term investments, accounted for
this growth.
CERTAIN FACTORS
The industry in which the Company competes is characterized by extremely rapid
technological change and frequent product introductions. The Company believes
that long-term growth will depend largely on its ability to continue to enhance
existing products and to introduce new products and features that meet changing
customer requirements. While the Company has invested heavily in new products
and processes, there can be no assurance that it can continue to introduce new
products and features on a timely basis or that certain of its products and
processes will not be rendered noncompetitive or obsolete by its competitors.
LIQUIDITY AND CAPITAL RESOURCES
On September 30, 1995, the Company had a total of $19,005,000 in cash, cash
equivalents and short term investments compared to $19,456,000 at March 31,
1995. Cash provided by operating activities in the six months ended September
30, 1995 was $2,728,000. The increase was due to net income in the six months
ended September 30, 1995 offset by increases in accounts receivable and
inventory. Cash used in investing activities during the six months ended
September 30, 1995 was $6,699,000. This was primarily due to the purchase of
the company's new headquarters facility in July 1995 and purchases of short-term
investments. Management believes its current cash and short-term investments
will be adequate to meet anticipated operating needs for the next 12 months.
Capital expenditures for the twelve months ending September 30, 1996 are
expected to be higher than those for the prior 12-month period because capacity
expansion is being planned.
PART II - OTHER INFORMATION
<TABLE>
Item 4. - Submission of Matters to a Vote of Security Holders
The Company's Annual Shareholders' Meeting was held on August 4, 1995 at 10:00 a.m., at which the following matters were acted upon:
<CAPTION>
Matter Acted Upon Votes Votes Votes Withheld/ Broker
For Against Abstentions Non-Votes
<S> <C> <C> <C> <C>
1. Election of Director
Henry C. Pao 10,188,284 0 651,583 0
Yunni Pao 10,184,984 0 654,883 0
Benedict C. K. Choy 10,188,784 0 651,083 0
Frank C. Pao 10,188,484 0 651,383 0
Richard E. Siegel 10,188,484 0 651,383 0
2. Addition of 1,000,000 shares
to 1991 Stock Options Plan
8,188,838 793,532 38,088 1,819,409
3. Ratification of Coopers and
Lybrand L.L.P. as independent
accountants for the company for
fiscal year ending March 31,1996
10,826,263 8,104 5,500 0
</TABLE>
Item 6. - Exhibits and Reports on Form 8-K
(a) Exhibits
11.1 Computation of Per Share Amounts
(b) Reports on Form 8-K
None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SUPERTEX, INC.
(Registrant)
Date: October 16, 1995
By: /s/ Henry C. Pao
-------------------------
Dr. Henry C. Pao, President
(Principal Executive and Financial Officer)
<PAGE>
PART II - OTHER INFORMATION
Item 6 (a) Exhibit 11.1
<TABLE>
Computation of Per Share Amounts
(Unaudited)
(in thousands, except per share amounts)
<CAPTION>
Three Months Ended Six Months Ended
Sep. 30, Oct. 1, Sep. 30, Oct. 1,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
PRIMARY
Weighted average shares outstanding 11,906 11,730 11,900 11,725
Common Stock equivalents 401 139 375 114
Total Shares 12,307 11,869 12,275 11,839
Net income $ 1,719 $ 1,169 $ 3,285 $ 2,335
Per share amount $ 0.14 $ 0.10 $ 0.27 $ 0.20
FULLY DILUTED
Weighted average shares outstanding 11,906 11,730 11,900 11,725
Common Stock equivalents 420 217 396 153
Total Shares 12,326 11,947 12,296 11,878
Net income $ 1,719 $ 1,169 $ 3,285 $ 2,335
Per share amount $ 0.14 $ 0.10 $ 0.27 $ 0.20
<FN>
Earnings per share for Financial Statements purposes has been calculated based
on the weighted average shares outstanding for each period presented as the
dilution from Common Stock Equivalents is less than 3%.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-30-1996
<PERIOD-START> APR-02-1995
<PERIOD-END> SEP-30-1995
<CASH> 4,178
<SECURITIES> 0
<RECEIVABLES> 7,188
<ALLOWANCES> 347
<INVENTORY> 7,226
<CURRENT-ASSETS> 35,075
<PP&E> 17,262
<DEPRECIATION> 11,335
<TOTAL-ASSETS> 41,002
<CURRENT-LIABILITIES> 6,575
<BONDS> 0
<COMMON> 18,235
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 41,002
<SALES> 19,516
<TOTAL-REVENUES> 19,516
<CGS> 10,103
<TOTAL-COSTS> 10,103
<OTHER-EXPENSES> 2,604<F1>
<LOSS-PROVISION> 8
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 4,761
<INCOME-TAX> 1,476
<INCOME-CONTINUING> 3,285
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,285
<EPS-PRIMARY> .27
<EPS-DILUTED> .27
<FN>
<F1> Research and Development Expenses
</FN>
</TABLE>
