Siliconix Reports Results for the Year and Fourth Quarter 2004

Siliconix Reports Results for the Year and Fourth Quarter 2004



SANTA CLARA, Calif., Feb. 8  /PRNewswire-FirstCall/ -- Siliconix incorporated
(NASDAQ:SILI), an 80.4% owned subsidiary of Vishay Intertechnology, Inc.
(NYSE:VSH), announced that net income for the year ended December 31, 2004 was
$54.8 million, or $1.83 per share, an increase of 39% over the $39.5 million,
or $1.32 per share, achieved in 2003.  Net sales in 2004 were $466.1 million, a
17% increase from net sales of $398.1 million in 2003.  Net income in the
fourth quarter of 2004 was $10.0 million, or $0.33 per share, a decrease of 36%
from the net income of $15.5 million, or $0.52 per share, in the third quarter
of 2004 and a decrease of 5% from the $10.5 million net income, or $0.35 per
share, in the fourth quarter of 2003.  Net sales in the fourth quarter of 2004
were $106.3 million, a 9% decrease from the net sales of $117.2 million in the
third quarter of 2004 and a 4% decrease from the net sales of $110.8 million in
the fourth quarter of 2003.

The gross margin for the fourth quarter of 2004 was 25%, compared to 32% for
the third quarter of 2004 and 29% for the fourth quarter of 2003.  The decrease
in gross margin was due to pricing pressures and a product mix of lower-margin
products.  For the entire year, the gross margin was 30%, compared to 29% in
2003, as a modest decrease in the average selling price was overcome by the
Company's cost reduction programs, material savings, and greater factory
utilization.

Research and development expenses for the year 2004 were $1.6 million higher
than for 2003.  Selling, marketing and administration expenses remained well
under control, comprising 12.0% of sales in the fourth quarter of 2004,
compared to 11.4% in the fourth quarter of 2003 and 10.7% in the third quarter
of 2004.  For the entire year, SM&A expenses were 11.3% of sales, compared to
11.7% of sales in 2003.

Dr. King Owyang, Siliconix President and CEO, said, "Our customers' inventory
policies grew increasingly conservative during the last half of 2004.  It is
apparent to us that in the first half of 2004, our robust booking levels
reflected in part a desire by many customers to avoid supply chain disruptions
in a longer lead-time environment.  Now that lead times are shortening,
customers have been adjusting their ordering practices to more of a
'just-in-time' approach.  Thus, in the fourth quarter of 2004, order rates from
end customers to our distributors were well ahead of our distributors' order
rates to us, indicating that distribution order rates are below end consumption
rates of our products; and our backlog decreased by 15% from the beginning to
the end of the fourth quarter of 2004."

He continued, "This continues to be a difficult market to forecast.  In
general, softness in bookings for semiconductor companies has resulted from
both inventory corrections throughout the various sales channels and also some
moderations in the rate of growth of end demand.  We are, however, expecting
moderate growth in our two key markets, cellular phones and portable computers,
in 2005, and we are continuing our capacity expansion program according to plan
so that we may better serve our customers."

He noted, "Applying our technology and packaging innovations to new product
development is a key initiative of our company.  We released a total of 31 new
products to the market in the fourth quarter of 2004.  Our IC line added 10 new
parts for power management solutions, including a family of dual low drop out
regulators and the addition of small form factor LDOs in an SC-70 package.  We
complemented our family of drivers for DC-DC conversion circuits and motor
control solutions with the addition of 12V and 7V selections of half bridge
drivers.  Our Power MOSFET product family benefited from product releases
utilizing our TrenchFET(R) Gen II and WFET(R) processes.  This combination
offers efficiency ratings up to 54% better than competing solutions.  We
broadened our 40V to 60V MOSFET line with a high threshold process to combat
the severe design environment of high current-high thermal conditions of
automotive applications.  Growing our chipscale product portfolio offers low
profile, small footprint power management solutions for space-challenged
applications such as battery packs, PDAs, MP3 players, and portable
communication devices.  Additionally, we added to our robust selection of power
conversion devices for the fixed telecom arena with the release of a family of
150V to 200V P-channel devices in a variety of packages from SC-70 to
PowerPAK(R) 1212 and SO-8."

He continued, "Design activity and support is key to our customer base. We
successfully completed 355 new designs in the fourth quarter of 2004,
contributing solutions for plasma displays, automotive applications, consumer
electronics, and portable communication and computing devices.  We remain
committed to a solutions-driven approach jointly defined by our customer base
and technical staff."

He concluded, "Our consistent approach to solution-based investments will
continue to enhance our leadership in key markets.  At the same time, our cost
reduction programs and improving manufacturing efficiencies position us to
further penetrate power management applications in the telecommunications,
portable computer, consumer, industrial, and automotive markets.  We believe
that this strategy is behind our success, both in the marketplace and
financially.  The Company's financial position remains very strong; we are
debt-free and continue to finance our growth with internal profits."

Siliconix is a leading manufacturer of power MOSFETs, power ICs, analog
switches, and multiplexers for computers, cell phones, fixed communications
networks, automobiles, and other consumer and industrial electronic systems.
With 2004 worldwide sales of $466.1 million, the Company's facilities include a
company-owned Class 1 wafer fab dedicated to the manufacture of power products
in Santa Clara, California, and a Class 1 wafer fab located in Itzehoe, Germany
utilized under a lease arrangement.  The Company's products are also fabricated
by subcontractors in Japan, Germany, China, Taiwan, and the United States. 
Assembly and test facilities include a company-owned facility in Taiwan, a
joint venture in Shanghai, China, and subcontractors in the Philippines, China,
Taiwan and Israel.

Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE (VSH),
is one of the world's largest manufacturers of discrete semiconductors (diodes,
rectifiers, transistors, and optoelectronics) and selected ICs, and passive
electronic components (resistors, capacitors, inductors, and transducers). 
Vishay's components can be found in products manufactured in a very broad range
of industries worldwide.  Vishay is headquartered in Malvern, Pennsylvania, and
has operations in 17 countries employing over 25,000 people. Vishay can be
found on the Internet at http://www.vishay.com/.

These results will be discussed during the Vishay Intertechnology, Inc.
conference call scheduled for today, February 8, 2005 at 11:00 AM (EST).  The
dial-in number for the conference call is 800-553-0329 (612-332-0923 if calling
from outside the United States or Canada).  The conference operator will
require the following information in order to admit you into the call: Company
Name:  Vishay Intertechnology, Inc. and Moderators: Vishay Executives. There
will be a replay of the conference call from 2:30 PM (EST) on Tuesday, February
8, 2005 through 11:59 PM (EST) on Sunday, February 13, 2005.  The telephone
number for the replay is 800-475-6701 (320-365-3844 if calling from outside the
United States or Canada). The access code is 751217.

There will also be a live audio webcast of the conference call.  This can be
accessed directly from the Investor Relations section for Siliconix at
http://ir.siliconix.com/.

Statements contained herein that relate to the Company's future performance,
including statements with respect to anticipated improvements in the Company's
business and business climate, future product innovation, and implementation of
cost savings strategies, are forward-looking statements within the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.  Such
statements are based on current expectations only, and are subject to certain
risks, uncertainties, and assumptions.  Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated, estimated or
projected.  Among the factors that could cause actual results to materially
differ include: general business and economic conditions, particularly in the
markets that we serve, cancellation of orders in our backlog, difficulties in
new product development, and other factors affecting the Company's operations,
markets, products, services, and prices that are set forth in its December 31,
2003 Report on Form 10-K filed with the Securities and Exchange Commission. 
You are urged to refer to the Company's Form 10-K for a detailed discussion of
these factors.  The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise.

On February 1, 2005, the Board of Directors of Siliconix approved the
acquisition by Siliconix of Vishay Semiconductor Itzehoe GmbH ("VSIG") from
Vishay.  Siliconix renamed the company "Siliconix Itzehoe GmbH".  Siliconix
Itzehoe GmbH is now a wholly-owned subsidiary of Siliconix.  This transaction
has been accounted for as a merger of entities under common control and has
been recorded in a manner similar to a pooling of interests. Accordingly, the
accompanying consolidated financial information include the accounts of
Siliconix and VSIG for all periods presented.

  Siliconix incorporated
  Consolidated Statements of
   Operations
  (Unaudited, In thousands, except   Fiscal Quarter Ended    Year Ended
    for per share information)        Dec. 31   Dec. 31   Dec. 31,  Dec. 31,
                                        2004      2003      2004      2003


  Net sales                          $106,282  $110,830  $466,131  $398,092
  Cost of products sold                79,247    79,221   326,155   282,449

  Gross profit                         27,035    31,609   139,976   115,643

  Operating expenses:
  Research and development              4,514     5,082    21,152    19,501
  Selling, marketing, and
   administrative expenses             12,723    12,616    52,509    46,512

  Operating income                      9,798    13,911    66,315    49,630

  Interest income                       1,254       511     3,214     1,963
  Other income (expense) net            1,505      (831)      581      (743)

  Income before taxes and minority
   interest                            12,557    13,591    70,110    50,850
  Income tax provision                  2,533     2,989    15,090    11,157
  Minority interest in income of
   consolidated subsidiary                 60        60       240       240

  Net income                           $9,964   $10,542   $54,780   $39,453

  Net income per share (basic and
   diluted)                             $0.33     $0.35     $1.83     $1.32

  Shares used to compute net income
   per share                           29,879    29,879    29,879    29,879



  Siliconix incorporated
  Consolidated Balance Sheets
  (Unaudited, in thousands)                             December 31,
                                                   2004              2003
  Assets
  Current assets:
    Cash and cash equivalents                   $305,739          $279,465
    Accounts receivable, net                      36,553            52,364
    Accounts receivable from affiliates           22,189            28,777
    Inventories                                   69,987            65,576
    Other current assets                          30,941            24,938
    Deferred income taxes                          3,416             3,508
      Total current assets                       468,825           454,628

  Property and equipment, at cost:
    Land                                           1,715             1,715
    Buildings and improvements                    62,686            58,082
    Machinery and equipment                      480,488           430,403
                                                 544,889           490,200
    Less accumulated depreciation                361,654           321,946
                                                 183,235           168,254

  Goodwill                                         7,445             7,445
  Other assets                                    24,197             1,397
      Total assets                              $683,702          $631,724

  Liabilities and Stockholders' Equity
  Current liabilities:
    Accounts payable                             $31,668           $41,390
    Accounts payable to affiliates                30,743            41,400
    Payable to Vishay for VSIG                    10,200            10,200
    Accrued payroll and related compensation      10,938             9,903
    Other accrued liabilities                     42,331            31,966
      Total current liabilities                  125,880           134,859

  Accrued pension benefits                         3,129             3,137
  Deferred income taxes                           12,860            15,868
  Other non-current liabilities                   62,228            52,161
  Minority interest                                3,143             3,143
      Total liabilities                          207,240           209,168

  Commitments and contingencies

  Stockholders' equity:
    Common stock                                     299               299
    Additional paid-in-capital                    54,684            54,684
    Retained earnings                            422,231           367,451
    Accumulated other comprehensive loss            (752)              122
      Total stockholders' equity                 476,462           422,556
      Total liabilities and stockholders'
       equity                                   $683,702          $631,724


   Contact:  Peter G. Henrici, Vice President,
             Investor Relations, Siliconix incorporated
             (NASDAQ NSM: SILI)
             408-567-8400

             Robert A. Freece,
             Executive Vice President
             Vishay Intertechnology, Inc.
             (NYSE:VSH)
             610-251-5252


DATASOURCE: Siliconix incorporated



CONTACT:  Peter G. Henrici, Vice President, Investor Relations, Siliconix

incorporated, [phone]; or Robert A. Freece, Executive Vice President

of Vishay Intertechnology, Inc., [phone]



Web site:  http://www.siliconix.com/ 

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