Supertex Inc. (SUPX, Financial) filed Quarterly Report for the period ended 2009-06-27.
Supertex Inc. is a technology-based producer of high voltage analog and mixed signal semiconductor components. It designs develops manufactures and markets integrated circuits utilizing state-of-the-art high voltage DMOS HVCMOS and HVBiCMOS analog and mixed signal technologies. They are used by flat panel display printer medical ultrasound imaging telephone telecommunications and instrumentation industries. Supertex Inc. has a market cap of $307.8 million; its shares were traded at around $23.88 with a P/E ratio of 34.7 and P/S ratio of 3.9. Supertex Inc. had an annual average earning growth of 5.3% over the past 10 years.
Sales of LED driver ICs for lighting and backlighting were $2,876,000 for the three months ended June 27, 2009 compared to $1,353,000 for the same period last year, an increase of 113% and compared to $1,977,000 for the prior quarter, an increase of 45%. The quarterly year-over-year and sequential increases in sales were primarily due to increased shipments of our high voltage LED driver ICs for backlighting a new line of LCD TVs ramping up volume production at a tier-one OEM.
Net sales to international customers for the three months ended June 27, 2009 were $8,422,000 or 62% of net sales as compared to $15,051,000 or 66% of net sales for the same period of the prior fiscal year and $8,728,000 or 58% for the three months ended March 28, 2009. Sales to international customers for the three months ended June 27, 2009 decreased 44% compared to the same period last year and decreased 4% sequentially, primarily due to the weak global economy and reduced demand for EL inverter ICs due to weak sales of our major OEM s products.
Gross profit for the quarter ended June 27, 2009 was $7,130,000, compared to $12,751,000 for the same period of fiscal 2009, and $6,319,000 for the prior quarter. The year-over-year quarterly decrease in gross profit was primarily attributable to decreased sales, unfavorable product mix, and higher charges for inventory excess and obsolescence. The $811,000 sequential increase in gross profit resulted from higher absorption of factory overhead costs through increased capacity utilization as we increased inventory of LED backlighting products whose sales are expected to ramp up, partially offset by unfavorable product mix and increased charges for inventory excess and obsolescence.
As a percentage of net sales, gross margin was 53% for the three months ended June 27, 2009 compared to 56% for the same period of the prior fiscal year and 42% for the prior quarter. The year-over-year quarterly decrease in gross margin was primarily attributable to unfavorable product mix and higher charges for inventory excess and obsolescence. The sequential increase in gross margin was primarily due to higher absorption of factory overhead costs through increased capacity utilization, partially offset by unfavorable product mix and increased charges for inventory excess and obsolescence. We wrote down inventory totaling $1,542,000 and $530,000 for the three months ended June 27, 2009 and June 28, 2008, respectively.
Expenditures for R&D were $4,005,000 for the three months ended June 27, 2009, as compared to $4,037,000 for the three months ended June 28, 2008, or essentially flat. Compared to the three months ended March 28, 2009, R&D spending was $758,000 higher due to increased costs of masks and tooling for new product design activity of $227,000, higher payroll expenses of $116,000, and an increase in benefits of $319,000 resulting from an increase in fair value of our Nonqualified Deferred Compensation Plan (“NQDCP”).
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Supertex Inc. is a technology-based producer of high voltage analog and mixed signal semiconductor components. It designs develops manufactures and markets integrated circuits utilizing state-of-the-art high voltage DMOS HVCMOS and HVBiCMOS analog and mixed signal technologies. They are used by flat panel display printer medical ultrasound imaging telephone telecommunications and instrumentation industries. Supertex Inc. has a market cap of $307.8 million; its shares were traded at around $23.88 with a P/E ratio of 34.7 and P/S ratio of 3.9. Supertex Inc. had an annual average earning growth of 5.3% over the past 10 years.
Highlight of Business Operations:
Net sales for the three months ended June 27, 2009 were $13,555,000, a 40% decrease compared to $22,751,000 for the same period of the prior fiscal year. This year-over-year decrease in net sales resulted primarily from the current weak global economy affecting nearly all of our markets, one of our customers of EL inverter ICs for cell phones losing market share, reduced shipments to telecom due to lower demand for driver ICs for a military radio application and a general decline in the expansion of optical network infrastructure. Net sales decreased 10% from $15,010,000 when compared to the quarter ended March 28, 2009, primarily due to the continued weakness in the global economy affecting nearly all of our target markets. However, sales of LED backlighting drivers continued to ramp up, as demand increased from a tier-one flat screen TV OEM for their new line of LCD TVs using LED backlights and sales of our EL inverter ICs also grew.Sales of LED driver ICs for lighting and backlighting were $2,876,000 for the three months ended June 27, 2009 compared to $1,353,000 for the same period last year, an increase of 113% and compared to $1,977,000 for the prior quarter, an increase of 45%. The quarterly year-over-year and sequential increases in sales were primarily due to increased shipments of our high voltage LED driver ICs for backlighting a new line of LCD TVs ramping up volume production at a tier-one OEM.
Net sales to international customers for the three months ended June 27, 2009 were $8,422,000 or 62% of net sales as compared to $15,051,000 or 66% of net sales for the same period of the prior fiscal year and $8,728,000 or 58% for the three months ended March 28, 2009. Sales to international customers for the three months ended June 27, 2009 decreased 44% compared to the same period last year and decreased 4% sequentially, primarily due to the weak global economy and reduced demand for EL inverter ICs due to weak sales of our major OEM s products.
Gross profit for the quarter ended June 27, 2009 was $7,130,000, compared to $12,751,000 for the same period of fiscal 2009, and $6,319,000 for the prior quarter. The year-over-year quarterly decrease in gross profit was primarily attributable to decreased sales, unfavorable product mix, and higher charges for inventory excess and obsolescence. The $811,000 sequential increase in gross profit resulted from higher absorption of factory overhead costs through increased capacity utilization as we increased inventory of LED backlighting products whose sales are expected to ramp up, partially offset by unfavorable product mix and increased charges for inventory excess and obsolescence.
As a percentage of net sales, gross margin was 53% for the three months ended June 27, 2009 compared to 56% for the same period of the prior fiscal year and 42% for the prior quarter. The year-over-year quarterly decrease in gross margin was primarily attributable to unfavorable product mix and higher charges for inventory excess and obsolescence. The sequential increase in gross margin was primarily due to higher absorption of factory overhead costs through increased capacity utilization, partially offset by unfavorable product mix and increased charges for inventory excess and obsolescence. We wrote down inventory totaling $1,542,000 and $530,000 for the three months ended June 27, 2009 and June 28, 2008, respectively.
Expenditures for R&D were $4,005,000 for the three months ended June 27, 2009, as compared to $4,037,000 for the three months ended June 28, 2008, or essentially flat. Compared to the three months ended March 28, 2009, R&D spending was $758,000 higher due to increased costs of masks and tooling for new product design activity of $227,000, higher payroll expenses of $116,000, and an increase in benefits of $319,000 resulting from an increase in fair value of our Nonqualified Deferred Compensation Plan (“NQDCP”).
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