"We continue to push on all fronts in order to improve in our traditional markets and to increase our integrated circuit (IC) business demonstrated by the recent acquisition of LED driver IC and LCD display driver IC businesses that complement our internally developed LED and LCD display driver ICs," commented Dr. Nathan Zommer, CEO of IXYS Corporation. "We also focused on our European operations, reorganizing for efficiency, reduced overhead and improved bottom line performance."

Gross profit was $12.6 million, or 23.5% of net revenues, for the quarter ended September 30, 2009, as compared to gross profit of $23.8 million, or 30.7% of net revenues, for the same quarter in the prior fiscal year. At 23.5%, gross margin increased by 2.3 percentage points in the September quarter from 21.2% in the June 2009 quarter.

Gross profit for the six months ended September 30, 2009 was $23.0 million, or 22.4% of net revenues, as compared to a gross profit of $48.6 million, or 30.9% of net revenues, for the same period in the prior fiscal year.

Net loss for the quarter ended September 30, 2009 was $1.2 million, or $0.04 loss per share, as compared to a net income of $6.1 million, or $0.18 per diluted share for the same quarter in the prior fiscal year. Net loss for the six months ended September 30, 2009 was $5.1 million, or $0.17 per share, as compared to net income of $11.5 million, or $0.35 per diluted share, for the same period in the prior fiscal year.

The results for the quarter ended September 30, 2009 included restructuring charges of $1.0 million.

"In conjunction with a concerted sales effort, IXYS has streamlined expenses, evidenced by absolute dollar decreases in SG&A expenses in the past six quarters. Through our cash conservation efforts, our cash increased $3.6 million from June 30, 2009 to September 30, 2009," stated Uzi Sasson, COO & CFO at IXYS. "Our bookings improved by about $6.3 million from the June 2009 quarter to the September 2009 quarter. However, macroeconomic volatility persists and customer buying trends remain varied; consequently we will not provide a revenue forecast for the December 2009 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 advanced 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 necessary in 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 an end 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.

Safe Harbor Statement

The foregoing press release contains forward-looking statements, including those related to the cash conservation, bookings, macroeconomic volatility and customer buying trends. 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, 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 reports that IXYS has filed with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended June 30, 2009. 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)
                                                                   Sep. 30,       Mar. 31,
                                                                   2009           2009
ASSETS
Current assets:
Cash and cash equivalents                                          $     67,732   $     55,577
Accounts receivable, net                                                 33,864         37,251
Other receivables                                                        549            671
Inventories, net                                                         69,803         75,601
Prepaid expenses and other current assets                                3,558          3,323
Deferred income taxes                                                    13,047         12,797
Total current assets                                                     188,553        185,220
Plant and equipment, net                                                 49,989         52,912
Other assets                                                             9,832          6,728
Deferred income taxes                                                    8,109          7,972
Total assets                                                       $     256,483  $     252,832
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capitalized lease obligations                   $     3,721    $     3,739
Current portion of notes payable to bank                                 1,529          1,455
Accounts payable                                                         15,298         13,767
Accrued expenses and other current liabilities                           13,751         15,342
Total current liabilities                                                34,299         34,303
Capitalized lease and other long term obligations, net of current        25,850         26,862
portion
Pension liabilities                                                      14,543         13,175
Total liabilities                                                        74,692         74,340
Common stock                                                             365            361
Additional paid-in capital                                               133,816        132,177
Retained earnings                                                        38,886         43,984
Accumulated other comprehensive income                                   8,724          1,970
Stockholders' equity                                                     181,791        178,492
Total liabilities and stockholders' equity                         $     256,483  $     252,832

IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
                                                                 Three Months Ended          Six Months Ended
                                                                 Sep. 30                     Sep. 30
                                                                 2009            2008        2009             2008
Net revenues                                                     $   53,746      $   77,635  $   102,631      $   156,971
Cost of goods sold                                                   41,138          53,838      79,679           108,412
Gross profit                                                         12,608          23,797      22,952           48,559
Operating expenses:
Research, development and engineering                                4,489           5,431       9,058            10,825
Selling, general and administrative                                  8,018           10,433      16,366           21,492
Restructuring charges                                                1,010           -           1,010            -
Total operating expenses                                             13,517          15,864      26,434           32,317
Operating income (loss)                                              (909   )        7,933       (3,482  )        16,242
Other income (expense), net                                          (1,220 )        749         (2,961  )        1,515
Income (loss) before income tax provision                            (2,129 )        8,682       (6,443  )        17,757
Provision for (benefit from) income tax                              (899   )        2,623       (1,345  )        6,214
Net income (loss)                                                $   (1,230 )    $   6,059   $   (5,098  )    $   11,543
Net income (loss) per share - basic                              $   (0.04  )    $   0.19    $   (0.17   )    $   0.37
Weighted average shares used in per share calculation - basic        30,901          31,554      30,796           31,368
Net income (loss) per share - diluted                            $   (0.04  )    $   0.18    $   (0.17   )    $   0.35
Weighted average shares used in per share calculation - diluted      30,901          32,887      30,796           32,567

SOURCE: IXYS Corporation

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

Expected next investor conference call information:
Conference Call Date: 10/29/2009
Conference Call Time (ET): 5:00 PM
Conference Call URL: http://www.ixys.com/corporate/corp_ethics.asp

Expected next investor conference call information:
Conference Call Date: 7/28/2009
Conference Call Time (ET): 5:00 PM
Conference Call URL: http://us.lrd.yahoo.com/_ylt=AqBKA67_OSzxCq.dNjJ1sUDjba9_/SIG=14oh6gg53/**http%3A//cts.businesswire.com/ct/CT%3Fid=smartlink%26url=http%253A%252F%252Fwww.ixys.com%26esheet=6011987%26lan=en_US%26anchor=www.ixys.com%26index=1