Supertex (SUPX) Cuts Q3 Sales Outlook

Supertex, Inc. (NASDAQ: SUPX) has 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."

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