IXYS Corporation Announces March Quarter and Year Results

MILPITAS, Calif. & BIEL, Switzerland--(Business Wire)--
IXYS Corporation (NASDAQ:IXYS), an international power semiconductor company,
today reported net revenues of $58.2 million for the fourth fiscal quarter ended
March 31, 2009, as compared with net revenues of $79.3 million for the same
period in the prior fiscal year.

For the fiscal year ended March 31, 2009, IXYS reported net revenues of $273.6
million, as compared with net revenues of $304.5 million for the prior fiscal
year.

"We are not immune to the present difficult economic cycle. However, the IXYS
business model of diversified products, customers, markets and geographies has
enabled us to endure this lengthy recession with a relatively low decline in
annual revenues. We have also taken significant steps to reduce our expenses,"
stated Dr. Nathan Zommer, Chairman and CEO of IXYS. "Taking advantage of the
economic situation, we have continued our selective R&D investments in new
technologies and new capabilities in order to position IXYS for better growth
opportunities in new applications, relative to our competitors."

Gross profit was $4.7 million, or 8.1% of net revenues, for the quarter ended
March 31, 2009, as compared to gross profit of $24.0 million, or 30.3% of net
revenues, for the same quarter in the prior fiscal year. The gross profit for
the quarter ended March 31, 2009 included unusual excess inventory write-downs
of $11.9 million, which were taken in response to the deterioration in the
business environment, as well as inventory charges of $323,000 in the normal
course of business. Excluding the $11.9 million unusual charge, gross profit for
the quarter ended March 31, 2009 would have been $16.6 million, or 28.5% of net
revenues. Gross profit for the fiscal year ended March 31, 2009 was $66.0
million, or 24.1% of net revenues, as compared to a gross profit of $87.1
million, or 28.6% of net revenues, for the prior fiscal year.

The results for the quarter ended March 31, 2009 included pre-tax adjustments
reducing net income of $4.0 million (after tax of $3.6 million) for the
impairment of goodwill and intangible assets and $11.9 million (after tax of
$7.8 million) for inventory write-downs, and adjustments totaling $4.1 million
related to taxes that also reduced net income. Adjustments in the quarter
increasing net income included $2.2 million (after tax of $1.5 million) for
funds received in reimbursement of litigation related expenses. All these items
are unusually large adjustments that are not typically encountered under normal
operations.

"We believe that a comparison of year to year non-GAAP results is a better
indicator of our results from product driven revenues," opined Dr. Zommer. Net
loss for the quarter ended March 31, 2009 was $10.9 million, or $0.36 loss per
diluted share. On a non-GAAP basis (excluding the unusual adjustments), net
income for the quarter was $3.1 million, or $0.10 per diluted share. For the
same quarter of the prior fiscal year, net income was $10.1 million, or $0.32
income per diluted share; on a non-GAAP basis (excluding unusual adjustments,
which were litigation entries), net income was $5.5 million or $0.17 per diluted
share.

Net loss for the fiscal year ended March 31, 2009 was $3.3 million, or $0.11
loss per diluted share; on a non-GAAP basis (excluding the unusual adjustments),
the net income for the year was $15.8 million, or $0.49 per diluted share. This
compares to net income of $23.3 million, or $0.71 per diluted share, for the
fiscal year ending March 31, 2008; and on a non-GAAP basis (excluding the
unusual litigation entries), the net income for the year was $15.1 million or
$0.46 per diluted share.

"As a result of the reduction in revenues and lack of better visibility, we
increased our excess inventory reserves by $11.9 million. We also examined the
goodwill and intangible assets recorded in prior acquisitions and determined
them to be impaired; therefore, they were written off. The writeoff of goodwill
and intangibles was $4.0 million. Additionally, we have been reimbursed $2.2
million for litigation related expenses and have made tax related adjustments
totaling $4.1 million. Except for these unusually large items, our net income
for the quarter ended March 31, 2009 would have been $3.1 million, or $0.10 per
diluted share," stated Uzi Sasson, COO and CFO.

Regarding revenue projections, Mr. Sasson said, "With the changing economic
conditions, we have found that our ability to project revenues has declined.
Consequently, we are ceasing the practice of projecting revenues."

About IXYS Corporation

Since its founding in Silicon Valley, IXYS Corporation has been developing power
semiconductor technology-driven products to improve power conversion efficiency,
generate clean energy, improve automation and provide advanced products for the
transportation, medical and telecommunication industries. IXYS is a worldwide
pioneer in the development of power MOSFETs, IGBTs, solid state relays, GaAs
based RF FETs and amplifiers and high voltage integrated circuits that are key
to reducing the world`s dependence on fossil fuels. IXYS has provided its array
of products to the renewable energy market since 1996 - products that enabled
high efficiency wind energy generation and high efficiency solar photovoltaic
electricity generation.

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 write-off for the impairment of goodwill and intangible assets,
the impact of various adjustments to inventory, adjustments related to taxes and
litigation related adjustments, all of which are unusually large adjustments
that are not typically encountered under normal operations. 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 our ability to position ourselves for better growth opportunities and
visibility. Actual results may vary materially from those contained in the
forward-looking statements, due to changes in customer delivery schedules, the
cancellation of orders, the absence of future orders, an unanticipated decline
in our business and disruptions in our production caused by our vendors, among
other things. Further information on other factors that could affect IXYS is
detailed and included in IXYS` Form 10-Q for the fiscal quarter ended December
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.

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

March 31, March 31,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents $ 55,577 $ 57,234
Accounts receivable, net 37,251 50,270
Other receivables 671 2,282
Inventories, net 75,601 86,516
Prepaid expenses and other current assets 3,323 4,133
Deferred income taxes 12,797 7,578
Total current assets 185,220 208,013
Plant and equipment, net 52,912 58,033
Other assets 6,728 14,238
Deferred income taxes 7,972 13,546

Total assets $ 252,832 $ 293,830

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Current portion of capitalized lease obligations $ 3,739 $ 4,890
Current portion of notes payable to bank 1,455 1,286
Accounts payable 13,767 21,489
Accrued expenses and other current liabilities 15,342 17,956
Total current liabilities 34,303 45,621
Capitalized lease and other long term obligations, net of current portion 26,862 30,752
Pension liabilities 13,175 17,228
Total liabilities 74,340 93,601

Common stock 361 354
Additional paid-in capital 132,177 132,125
Retained earnings 43,984 50,494
Accumulated other comprehensive income 1,970 17,256
Stockholders' equity 178,492 200,229

Total liabilities and stockholders' equity $ 252,832 $ 293,830

IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Three Months Ended Twelve Months Ended
Mar. 31 Mar. 31 Mar. 31 Mar. 31
2009 2008 2009 2008

Net revenues $ 58,244 $ 79,254 $ 273,552 $ 304,456
Cost of goods sold 53,499 55,278 207,594 217,332
Gross profit 4,745 23,976 65,958 87,124
Operating expenses:
Research, development and engineering 4,373 5,575 19,931 21,124
Selling, general and administrative 8,912 10,633 39,613 42,093
Impairment charges 2,691 - 6,440 -
Litigation provision - (7,062 ) - (12,957 )
Total operating expenses 15,976 9,146 65,984 50,260

Operating income (loss) (11,231 ) 14,830 (26 ) 36,864
Other income (expense), net 2,335 (974 ) 3,590 (2,885 )

Income (loss) before income tax provision (8,896 ) 13,856 3,564 33,979
Provision for income tax 2,014 3,737 6,913 10,690

Net income (loss) $ (10,910 ) $ 10,119 $ (3,349 ) $ 23,289

Net income (loss) per share - basic $ (0.36 ) $ 0.33 $ (0.11 ) $ 0.73

Weighted average shares used in per share calculation - basic 30,633 31,083 31,087 31,906

Net income (loss) per share - diluted $ (0.36 ) $ 0.32 $ (0.11 ) $ 0.71

Weighted average shares used in per share calculation - diluted 30,633 31,842 31,087 33,031

GAAP reconciliation to non-GAAP
(In thousands, except per share amounts)

Quarter Ended Twelve Months Ended
31-Mar-09 31-Mar-08 31-Mar-09 31-Mar-08

Net (loss) income, as reported (GAAP) $ (10,910 ) $ 10,119 $ (3,349 ) $ 23,289
Adjustment to GAAP net income (net of taxes)
Goodwill impairment charges 2,691 - 6,440 -
Additional excess inventory reserves 7,796 - 9,767 -
Accelerated amortization of intangibles 887 - 887 -
Reimbursement of litigation related expenses (1,464 ) - (1,464 ) -
Release of litigation reserves - (4,601 ) - (8,153 )
Tax related adjustments to GAAP 4,142 - 3,482 -

Non-GAAP net income $ 3,142 $ 5,518 $ 15,763 $ 15,136

Net (loss) income per share-basic, as reported (GAAP) $ (0.36 ) $ 0.33 $ (0.11 ) $ 0.73
Adjustment to GAAP net income (net of taxes)
Goodwill impairment charges 0.09 - 0.21 -
Additional excess inventory reserves 0.25 - 0.32 -
Accelerated amortization of intangibles 0.03 - 0.03 -
Reimbursement of litigation related expenses (0.05 ) - (0.05 ) -
Release of litigation reserves - (0.15 ) - (0.26 )
Tax related adjustments to GAAP 0.14 - 0.11 -

Net income per share-basic, (non-GAAP) $ 0.10 $ 0.18 $ 0.51 $ 0.47

Net (loss) income per share-diluted, as reported (GAAP) $ (0.36 ) $ 0.32 $ (0.11 ) $ 0.71
Adjustment to GAAP net income (net of taxes)
Goodwill impairment charges 0.09 (0.15 ) 0.20 -
Additional excess inventory reserves 0.26 - 0.31 -
Accelerated amortization of intangibles 0.03 - 0.03 -
Reimbursement of litigation related expenses (0.05 ) - (0.05 ) -
Release of litigation reserves - - - (0.25 )
Tax related adjustments to GAAP 0.13 - 0.11 -

Net income per share-diluted, (non-GAAP) $ 0.10 $ 0.17 $ 0.49 $ 0.46

Weighted average shares used in per share calculation
Basic 30,633 31,083 31,087 31,906
Dilutive weighted average share 624 759 905 1,125
Diluted 31,257 31,842 31,992 33,031

IXYS Corporation
Uzi Sasson, 408-457-9000
COO & CFO

Copyright Business Wire 2009