IXYS Corporation Announces Record Revenues and Backlog In June Quarter

June Quarter Highlights:

-- Record Revenues

-- Record Backlog of $116 million

-- Sequential gross margin improvement
MILPITAS, Calif.--(Business Wire)--
IXYS Corporation (NASDAQ:IXYS) today reported record net revenues
of $79.3 million for the first fiscal quarter ended June 30, 2008, an
increase of 4.5%, as compared with net revenues of $75.9 million for
the same period in the prior fiscal year. This proved to be another
quarter of record revenues, bolstered by the strength and breadth of
IXYS' product portfolio.

"We are pleased to see that in spite of a weak economy, especially
for semiconductor companies that have had significant consumer and
automotive revenues, IXYS continued to successfully execute its global
and diversified market strategy and deliver organic revenue growth,
profit growth and accelerated cash generation in the June 2008
quarter. Our continued focus on energy efficiency for the industrial,
telecommunication, transportation and renewable energy markets proved
rewarding in light of increased global demand for energy and the
increased costs of energy. Demand for IXYS products during the quarter
resulted in a record backlog of $116 million and a book to bill ratio
of 1.09, compared to a $109 million backlog and a 1.06 book to bill
ratio for the same quarter of the prior year," commented Dr. Nathan
Zommer, CEO of IXYS Corporation.

Gross profit was $24.8 million, or 31.2% of net revenues, for the
quarter ended June 30, 2008, as compared to gross profit of $22.4
million, or 29.5% of net revenues, for the same quarter in the prior
fiscal year. Notably, gross profit percentage improved in sequential
quarters - marking three consecutive quarters of increases.

Net income for the quarter ended June 30, 2008 was $5.5 million,
or $0.17 per diluted share, as compared to a net income of $7.0
million, or $0.21 per diluted share for the same quarter in the prior
fiscal year.

"Comparing year to year non-GAAP results is a better indicator of
financial results from product driven revenues," opined Dr. Zommer.
IXYS reported net income for the June 30, 2008 quarter of $0.17 per
diluted share, as compared to a non-GAAP net income of $0.13 per
diluted share for the June 30, 2007 quarter (which excludes the change
in the litigation provision), an increase of about 31%. Similarly,
operating income for the June 30, 2008 quarter of $8.3 million
increased by about 28% over the $6.5 million in the June quarter of
last year (again excluding the change in the litigation provision).

"This June quarter results included the highest quarterly cash
provided by operating activities since 2005," stated Uzi Sasson, COO &
CFO at IXYS. "The September quarter has traditionally been challenging
for us because of the summer vacation season in Europe. However, in
light of our strong backlog, we forecast a continuation of our strong
revenue stream in the current quarter and project our September 2008
quarter revenues to be relatively flat as compared to the June
quarter."

About IXYS Corporation

Since its founding in Silicon Valley, IXYS Corporation has been
developing technology-driven products to improve power conversion
efficiency, generate clean energy, improve automation, and provide
advance products for the transportation, medical and telecommunication
industries. IXYS is a worldwide pioneer in the development of power
semiconductors and high voltage integrated circuits (HVIC) that are
key to reducing the world's dependence on fossil fuels.

Diminishing natural resources, demand for cheap energy and
environmental directives for energy efficiency represent a significant
challenge. IXYS' power semiconductors and mixed-signal integrated
circuits (IC) play a vital role in reducing energy costs and
consumption by optimizing the energy efficiency of everyday products.
With a customer base of over 2,000 telecommunications, transportation,
industrial, medical and consumer companies, IXYS is a worldwide
provider of semiconductors.

Additional information may be obtained by visiting IXYS' website
at http://www.ixys.com, or by contacting the company directly.

Non-GAAP Financial Information

Included above and within the attached schedules are certain
non-GAAP financial figures. Management believes non-GAAP net income
and non-GAAP net income per share are useful measures of operating
performance because they exclude the impact of the provisions related
to litigation, which are in the nature of one-time events. However,
these non-GAAP measures should be considered in addition to, not as a
substitute for, or superior to net income and net income per share, or
other financial measures prepared in accordance with GAAP.

Safe Harbor Statement

The foregoing press release contains forward-looking statements,
including those related to backlog and projection of revenues for the
September 2008 quarter. Actual results may vary materially from those
contained in the forward-looking statements, due to changes in
customer delivery schedules, the cancellation of orders, an
unanticipated decline in our business, increased competition, capacity
limits on our ability to manufacture our products, cash flow
difficulties, unanticipated technological hurdles, adverse changes in
customer demand and increasing product costs, among other things.
Further information on other factors that could affect IXYS is
detailed and included in IXYS' Form 10-K for the fiscal year ended
March 31, 2008, as filed with the Securities and Exchange Commission.
IXYS undertakes no obligation to publicly release the results of any
revisions to these forward-looking statements.

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IXYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

June 30, March 31,
2008 2008
-------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 70,549 $ 57,234
Accounts receivable, net 50,688 50,270
Other receivables 1,700 2,282
Inventories, net 86,252 86,516
Prepaid expenses and other current
assets 2,694 4,133
Deferred income taxes 7,578 7,578
-------------- ------------
Total current assets 219,461 208,013
Property, plant and equipment, net 57,541 58,033
Other assets 11,068 14,238
Deferred income taxes 13,751 13,546
-------------- ------------

Total assets $301,821 $293,830
============== ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Current portion of capitalized
lease obligations $ 4,772 $ 4,890
Current portion of notes payable to
bank 1,284 1,286
Accounts payable 19,448 21,489
Accrued expenses and other current
liabilities 21,043 17,956
-------------- ------------
Total current liabilities 46,547 45,621
Capitalized lease and other long term
obligations, net of current portion 30,082 30,752
Pension liabilities 17,079 17,228
-------------- ------------
Total liabilities 93,708 93,601
-------------- ------------

Common stock 358 354
Additional paid-in capital 134,912 132,125
Retained earnings 55,978 50,494
Accumulated other comprehensive income 16,865 17,256
-------------- ------------
Stockholders' equity 208,113 200,229
-------------- ------------

Total liabilities and
stockholders' equity $301,821 $293,830
============== ============
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IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Three Months Ended
June 30, June 30,
----------- ------------
2008 2007
----------- ------------

Net revenues $ 79,336 $ 75,901
Cost of goods sold 54,574 53,513
----------- ------------
Gross profit 24,762 22,388
----------- ------------

Operating expenses:
Research, development and engineering 5,394 5,073
Selling, general and administrative 11,059 10,840
Litigation provision - (4,784)
----------- ------------
Total operating expenses 16,453 11,129
----------- ------------
Operating income 8,309 11,259
Other income, net 766 613
----------- ------------

Income before income tax provision 9,075 11,872
Provision for income tax expense 3,591 4,868
----------- ------------
Net income $ 5,484 $ 7,004
=========== ============

Net income per share - basic $ 0.18 $ 0.22
=========== ============

Weighted average shares used in per share
calculation - basic 31,181 32,490
=========== ============

Net income per share - diluted $ 0.17 $ 0.21
=========== ============

Weighted average shares used in per share
calculation - diluted 32,226 33,790
=========== ============
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Net Income
GAAP reconciliation to non-GAAP
(In thousands, except per share amounts)
Quarter Ended
30-Jun-08 30-Jun-07
---------- -----------

Net income, as reported (GAAP) $ 5,484 $ 7,004
Adjustments to GAAP net income:
Litigation provision and related tax effects - (2,733)

---------- -----------
Non-GAAP net income $ 5,484 $ 4,271
========== ===========

Net income per share-basic, as reported (GAAP) $ 0.18 $ 0.22
Adjustments to GAAP net income per share-basic:
Litigation provision and related tax effects - (0.09)

---------- -----------
Net income per share-basic, (non-GAAP) $ 0.18 $ 0.13
========== ===========

Net income per share-diluted, as reported (GAAP) $ 0.17 $ 0.21
Adjustments to GAAP net income per share-
diluted:
Litigation provision and related tax effects - (0.08)

---------- -----------
Net income per share-diluted, (non-GAAP) $ 0.17 $ 0.13
========== ===========

Weighted average shares used in per share
calculation
Basic 31,181 32,490
Dilutive weighted average share 1,045 1,300
---------- -----------
Diluted 32,226 33,790
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Operating Income
GAAP reconciliation to non-GAAP
(In thousands)
Quarter Ended
30-Jun-08 30-Jun-07
---------------- ---------------

Operating income, as reported (GAAP) $8,309 $11,259
Adjustments to GAAP net income:
Litigation provision - (4,784)

---------------- ---------------
Non-GAAP operating income $8,309 $6,475
---------------- ---------------
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IXYS Corporation
Uzi Sasson, COO & CFO, 408-457-9000

Copyright Business Wire 2008