SUNNYVALE, CA -- (Marketwire) -- 11/27/12 -- Supertex, Inc. (NASDAQ: SUPX) announced today that its Board of Directors has declared a special cash dividend of $1.00 per share to be paid on December 27, 2012, to shareholders of record on December 12, 2012. Supertex also updated its third fiscal quarter guidance on sales which are expected to be in the range of $13,800,000 to $14,500,000. This represents a 9% to 13% decline sequentially and from the Company's previous third fiscal quarter revenue guidance of approximately $15,900,000, primarily due to a large order push-out by our high-end computer monitor backlighting product customer and a delay in the ramp-up of our printer driver to another customer. This expected sequential decline in sales will reduce our previously forecast sequential gross margin increase by an amount that we cannot yet determine.
"The good news is that we received a significant design-win for our new LED backlighting chip at a major TV manufacturer with the production ramp-up beginning in December, but it's not enough to offset the large order push-out in the third fiscal quarter," stated Dr. Henry C. Pao, President and CEO. "The forecasted orders from the TV manufacturer are ramping up nicely for shipment in the fourth fiscal quarter and beyond."
Commenting on the special dividend, Dr. Pao explained, "We have accumulated a significant amount of cash over the years, and our Board's decision to pay a dividend at this time represents a tax efficient way to maximize shareholder value. We have a strong balance sheet and expect to continue to generate positive cash flow from operating activities in future quarters. We expect to introduce some significant new LED drivers and medical ultrasound imaging products in the next few months, which we hope will drive our sales growth and increase shareholder value."
The industry in which we compete is characterized by extreme rapid changes in technology and frequent new product introductions. We believe that our long-term growth will depend largely on our ability to continue to enhance existing products and to introduce new products and features that meet the continually changing requirements of our customers. All statements contained in this press release that are not historical facts are forward-looking statements. They are not guarantees of future performance or events. They are based upon current expectations, estimates, beliefs, and assumptions about the future, which may prove incorrect, and upon our goals and objectives, which may change. Often such statements can be identified by the use of the words such as "will", "intends", "expects", "plans", "believes", "anticipates", "hopes", and "estimates." Examples of forward-looking statements include our anticipation that in the third fiscal quarter sales will be 9% to 13% lower sequentially, our belief that we will have increased shipments of drivers for a new TV application in future months, our expectation that we will generate positive cash flow from operating activities, and we expect to introduce some significant new LED drivers and medical ultrasound imaging products in the next few months, which we hope will drive our sales growth and increase shareholder value.
These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events but rather involve a number of risks and uncertainties including, but not limited to, whether our customers experience the demand we anticipate for their products based in part upon their input and our order backlog, whether our distributors have the sell-through we anticipate and whether we receive the additional orders we anticipate, whether the designed performance of our devices satisfies our customers' requirements so that they continue to design our devices into their products, whether our devices perform to their design specification, whether competitors introduce devices at lower prices than our devices causing price erosion, whether we are successful in the engineering of new products, whether we encounter production issues in device manufacturing or moving new products from engineering into production, whether customers have requirements for deliveries of newly launched products during fiscal 2014, and whether our fab equipment continues to operate at expected capacities without need of replacement, as well as other risk factors detailed in our Form 8-K, 10-K, and 10-Q filings with the Securities and Exchange Commission. Due to these and other risks, our future actual results could differ materially from those discussed above. We undertake no obligation to publicly release updates or revisions to these statements that speak only as of this date.
Supertex, Inc. is a publicly held mixed signal semiconductor manufacturer, focused in high voltage products for use in the medical ultrasound imaging, LCD TV and computer monitor backlighting, LED general lighting, telecommunications, printer, flat panel display, industrial, and consumer product industries. Supertex product, corporate and financial information is readily available at our website: http://www.supertex.com.
For further information, contact Investor Relations at Supertex, Inc., 1235 Bordeaux Drive, Sunnyvale, California 94089, 408-222-8888 or visit our website at http://www.supertex.com.
Dr. Henry C. Pao
President & CEO