May 23rd

IXYS Corporation Announces Record Quarter and Fiscal Year Revenues

IXYS Corporation (NASDAQ: IXYS) today reported record net revenues of $79.3 million for the fourth fiscal quarter ended March 31, 2008, as compared with net revenues of $74.0 million for the same period in the prior fiscal year.

A technology rich semiconductor company, IXYS develops power semiconductors, integrated circuits and RF & systems that are used in a wide range of industrial, medical, telecommunication, transportation and consumer applications. Within the renewable energy industry, IXYS supplies semiconductor products that switch, control and convert electrical energy into the electrical power grid, mainly for windmill and solar systems. Fiscal Year Financial Highlights:

* Record revenues
* Strong backlog of $109 million -- $4 million higher than backlog at last fiscal year end
* IXYS repurchased 1.8 million IXYS shares for $15.1 million

For the fiscal year ended March 31, 2008, IXYS reported record net revenues of $304.5 million, as compared with net revenues of $285.9 million for the prior fiscal year.

Gross profit was $24.0 million, or 30.3% of net revenues for the quarter ended March 31, 2008, as compared to gross profit of $17.9 million, or 24.1% of net revenues for the same quarter in the prior fiscal year. Importantly, gross profit percentage improved quarter over quarter sequentially by 190 basis points.

“This quarter’s profit growth was a marked improvement over the third quarter; much of this strength can be attributed to the sale of higher-margin products in the U.S. and Europe,” commented Dr. Nathan Zommer, CEO and President of IXYS.

Gross profit for the fiscal year ended March 31, 2008 was $87.1 million, or 28.6% of net revenues as compared to a gross profit of $84.3 million, or 29.5% of net revenues in the prior fiscal year.

Net income for the quarter ended March 31, 2008, was $10.1 million on a GAAP basis, or $0.32 per diluted share ($5.5 million, $0.17 per diluted share, non-GAAP), as compared to a net income of $2.2 million on a GAAP basis, or $0.07 per diluted share ($1.7 million, $0.05 per diluted share, non-GAAP), for the same quarter in the prior fiscal year.

Net income for the fiscal year ended March 31, 2008 was $23.3 million on a GAAP basis, or $0.71 per diluted share ($15.1 million, $0.46 per diluted share, non-GAAP), as compared to net income of $30.2 million on a GAAP basis, or $0.87 per diluted share ($12.6 million, $0.36 per diluted share, non-GAAP) for the prior fiscal year. GAAP net income includes legal charge reversals attributable to favorable outcomes in connection with the International Rectifier Corporation and LoJack litigations.

“These financial results demonstrate again the high quality of our revenues and the robust nature of our business model. Even in challenging economic conditions, especially present in the semiconductor industry, IXYS continues to grow revenues and profits. In addition, IXYS has won legal battles against LoJack and International Rectifier. For the second time in the Federal Circuit Court of Appeals, we have prevailed in the patent dispute begun by International Rectifier. This again proves our strong proprietary position and technical leadership in the power MOSFET and IGBT marketplace. With the court’s ruling in our favor, we have removed one of the clouds that affected IXYS and its shareholders. We thus expect to gain more market share as a technology leader with improved financial results and accelerated new product introductions in traditional and renewable energy markets,” said Dr. Zommer CEO of IXYS.

The company repurchased approximately 77,000 IXYS shares for $507,000 during the March 2008 quarter, and approximately 1.8 million IXYS shares for $15.1 million in the fiscal year ended March 2008. As of March 31, 2008, about 139,000 shares remained available for repurchase under the existing repurchase authorization.

“We project revenues to be relatively flat for the June 2008 quarter as compared to our record March quarter,” stated Uzi Sasson, COO and CFO of IXYS Corporation. “IXYS is investing in R&D to address the growing demand for power management and renewable energy resources. As these products gain adoption, along with our continued strong presence in traditional markets, revenues and margins should increase.”

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 advance products for the transportation, medical and telecommunication industries. IXYS (NASDAQ: IXYS) is a worldwide pioneer in the development of power semiconductors and high voltage integrated circuits (HVIC) that are key to 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 a 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.

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 provisions related to litigation, which are in the nature of one-time events. 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 backlog, product lines, technological leadership, market share, future financial results, the demand for power management and renewable energy resources, product adoption, new product introductions, increasing revenues and margins, product developments, R&D investments and projection of revenues for the June 2008 quarter. 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, capacity limits on our ability to manufacture our products, 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 IXYS’ Form 10-Q for the fiscal quarter ended December 31, 2007, 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,
				2008 		2007
		ASSETS 				
Current assets: 				
Cash and cash equivalents 		$ 	57,234 		$ 	54,196
Accounts receivable, net 			50,270 			42,519
Other receivables 			2,282 			2,006
Inventories, net 			86,516 			85,965
Prepaid expenses and other current assets 		4,133 			1,262
Deferred income taxes 		  	7,578 		  	14,345
	Total current assets 			208,013 			200,293
Property, plant and equipment, net 			58,033 			48,741
Other assets 				14,238 			11,780
Deferred income taxes 		  	13,546 		  	12,827
						 
	Total assets 		$ 	293,830 		$ 	273,641
						 
LIABILITIES AND STOCKHOLDERS\' EQUITY 			
						 
Current liabilities: 				
Current portion of capitalized lease obligations 	$ 	4,890 		$ 	3,686
Current portion of notes payable to bank 		1,286 			1,012
Accounts payable 			21,489 			19,926
Accrued expenses and other current liabilities 	  	17,956 		  	33,261
	Total current liabilities 			45,621 			57,885
Capitalized lease and other long term obligations, net of current portion 		30,752 			17,772
Pension liabilities 		  	17,228 		  	16,875
	Total liabilities 		  	93,601 		  	92,532
						 
Common stock 				354 			350
Additional paid-in capital 			132,125 			143,038
Retained earnings 			50,494 			29,605
Accumulated other comprehensive income 		  	17,256 		  	8,116
	Stockholders\' equity 		  	200,229 		  	181,109
						 
	Total liabilities and stockholders\' equity 	$ 	293,830 		$ 	273,641

IXYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
  	  			  	
			Three Months Ended 		Fiscal Year Ended
			March 31 	March 31 		March 31 	March 31
			  	2008 	  	  	2007 	  		  	2008 	  	  	2007 	 
							 
Net revenues 	$ 	79,254 		$ 	74,018 			$ 	304,456 		$ 	285,908 	
Cost of goods sold 	  	55,278 	  	  	56,168 	  		  	217,332 	  	  	201,577 	 
	Gross profit 	  	23,976 	  	  	17,850 	  		  	87,124 	  	  	84,331 	 
							 
Operating expenses: 					
	Research, development and engineering 		5,575 			5,186 				21,124 			20,105 	
	Selling, general and administrative 		10,633 			10,972 				42,093 			44,134 	
	Litigation provision 	  	(7,062 	) 	  	303 	  		  	(12,957 	) 	  	(29,435 	)
		Total operating expenses 	  	9,146 	  	  	16,461 	  		  	50,260 	  	  	34,804 	 
	Operating income 		14,830 			1,389 				36,864 			49,527 	
Other income (expense), net 	  	(974 	) 	  	219 	  		  	(2,885 	) 	  	(1,288 	)
	Income before income tax provision 		13,856 			1,608 				33,979 			48,239 	
Provision (benefit) for income tax expense 	  	3,737 	  	  	(633 	) 		  	10,690 	  	  	18,020 	 
Net income 	$ 	10,119 	  	$ 	2,241 	  		$ 	23,289 	  	$ 	30,219 	 
							 
Net income per share - basic 	$ 	0.33 	  	$ 	0.07 	  		$ 	0.73 	  	$ 	0.90 	 
							 
Weighted average shares used in per share calculation - basic 	  	31,083 	  	  	32,659 	  		  	31,906 	  	  	33,505 	 
							 
Net income per share - diluted 	$ 	0.32 	  	$ 	0.07 	  		$ 	0.71 	  	$ 	0.87 	 
							 
Weighted average shares used in per share calculation - diluted 	  	31,842 	  	  	33,923 	  		  	33,031 	  	  	34,784 	 

GAAP reconciliation to non-GAAP
(In thousands, except per share amounts)
		  	  	
	Quarter Ended 			Twelve Months Ended
	March 31, 2008 	  	March 31, 2007 			March 31, 2008 	  	March 31, 2007
								 
Net income, as reported (GAAP) 	$ 	10,119 			$ 	2,241 				$ 	23,289 			$ 	30,219 	
Adjustments to GAAP net income: 								
Litigation provision and related tax effects 	  	(4,601 	) 		  	(589 	) 			  	(8,153 	) 		  	(17,620 	)
Non-GAAP net income 	$ 	5,518 	  		$ 	1,652 	  			$ 	15,136 	  		$ 	12,599 	 
								 
Net income per share-basic, as reported (GAAP) 	$ 	0.33 			$ 	0.07 				$ 	0.73 			$ 	0.90 	
Adjustments to GAAP net income per share-basic: 								
Litigation provision and related tax effects 	  	(0.15 	) 		  	(0.02 	) 			  	(0.26 	) 		  	(0.53 	)
Net income per share-basic, (non-GAAP) 	$ 	0.18 	  		$ 	0.05 	  			$ 	0.47 	  		$ 	0.37 	 
								 
Net income per share-diluted, as reported (GAAP) 	$ 	0.32 			$ 	0.07 				$ 	0.71 			$ 	0.87 	
Adjustments to GAAP net income per share-diluted: 								
Litigation provision and related tax effects 	  	(0.15 	) 		  	(0.02 	) 			  	(0.25 	) 		  	(0.51 	)
Net income per share-diluted, (non-GAAP) 	$ 	0.17 	  		$ 	0.05 	  			$ 	0.46 	  		$ 	0.36 	 
								 
Weighted average shares used in per share calculation 								
Basic 		31,083 				32,659 					31,906 				33,505 	
Dilutive weighted average shares 	  	759 	  		  	1,264 	  			  	1,125 	  		  	1,279 	 
Diluted 		31,842 				33,923 					33,031 				34,784 	

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