In-line Fourth Quarter for Supertex - Analyst Blog

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Supertex, Inc. ( SUPX ) recently posted a net income of $1.2 million or $0.11 per diluted share in the fourth quarter of fiscal 2012 compared with a net income $1.5 million or $0.12 per diluted share in the year-ago quarter and a net income of $0.09 million or $0.01 per diluted share in the previous quarter. The reported figure was in-line with the Zacks Consensus Estimate.

Supertex reported net sales of $16.4 million in the fourth quarter of fiscal 2012, up 17% from the previous quarter, but down 9% year over year.

The sequential growth was driven by a 29% surge in sales of medical electronics products and the ramping of sales of printer/EL family of products. The growth in sales of medical electronics products were driven by sales of analog switches and high voltage pulser circuits and chipsets for medical ultrasound equipment as well as custom processing services for other medical devices.

Sales of printer/EL family of products increased 39% sequentially, primarily driven by deman for OLED manufacturing equipment. The orders for LED drivers used in backlighting high-end monitors have increased.

Gross margin came in at 47%, up from 38% in the year-ago quarter. However, operating expenses increased 11% sequentially, primarily due to increased development costs to support the large number of new product development along with higher sales incentive costs, which in turn was due to increased sales. 

During the fourth quarter, Supertex generated $3.0 million of cash from operating activities and repurchased 69,000 shares for $1.2 million. Supertex ended the fourth quarter with $19.8 million of cash, down from $23.9 million at the end of the previous quarter. The company had no debt at the end of fiscal 2012.

For fiscal 2012, Supertex generated sales of $65.5 million, down 21% from fiscal 2011. Net income plummeted 61% to $4.5 million.

Going forward, Supertex projects sales to be flat to up 6% sequentially in the first quarter of fiscal 2013. After having launched four new products in the fourth quarter and almost 27 in fiscal 2012, the company expects to launch twelve more products in the first quarter of fiscal 2013. Most of these products address the medical ultrasound and LED lighting markets.

We maintain a Neutral recommendation on Supertex. However, we have a Zacks #2 Rank on the stock which translates into a short-term rating of Buy. 


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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