**UNITED STATES**
              **SECURITIES
                AND EXCHANGE COMMISSION**Washington,
                D.C.  20549**FORM
                10-Q**(MARK
                ONE)(x)    Quarterly
                Report Pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934**For
                the quarterly period ended June 30, 2007**or(  )   Transition
                Report Pursuant to Section 13 or 15(d) of the Securities and Exchange
                Act
                of 1934    (No Fee Required)**Commission
                File No. 0-12718****SUPERTEX,
                INC.**(Exact
                name of Registrant as specified in its Charter)**California**
            **94-2328535**(State
                or other jurisdiction of incorporation or organization)
            (IRS
                Employer Identification #)**1235
                Bordeaux Drive****Sunnyvale,
                California 94089**(Address
                of principal executive offices)Registrant's
                Telephone Number, Including Area Code:  **(408)
                222-8888**Indicate
                by check mark whether the Registrant (1) has filed all reports required
                to
                be filed by Section 13 or 15(d) of the Securities Exchange Act of
                1934
                during the preceding 12 months (or for such shorter period that the
                Registrant was required to file such reports), and (2) has been subject
                to
                such filing requirements for the past 90 days.**Yes  [
                X ]**
            **No  [    ]**Indicate
                by check mark whether the registrant is an accelerated filer (as
                defined
                in Rule 12b-2 of the Act). Check one.
              **Large
                accelerated filer
                [   ]            Accelerated
                filer [ X
                ]                 Non-accelerated
                filer [   ]**Indicate
                by check mark whether the registrant is a shell company (as defined
                in
                Rule 12b-2 of the Act).
              **Yes  [   ]                                                                                No  [
                X ]**Indicate
                the number of shares outstanding of each of the issuer’s classes of common
                stock, as of the latest practicable date.Class
            Outstanding
                at July 27, 2007Common
                Stock, no par value
            13,752,508*Exhibit
                index is on Page 27**Total
                number of pages: 31*









1




**SUPERTEX,
      INC.**


**QUARTERLY
      REPORT - FORM 10Q**







Table
                of Contents
            
            Page
                No.PART
                I – FINANCIAL INFORMATIONItem
                1.
            Financial
                Statements (Unaudited)Condensed
                Consolidated Statements of
                Income
            3Condensed
                Consolidated Balance
                Sheets
            4Condensed
                Consolidated Statements of Cash
                Flows
            5Notes
                to Condensed Consolidated Financial
                Statements
            6Item
                2.
            Management’s
                Discussion and Analysis of
                Financial Condition and Results of Operations
            15Item
                3.
            Quantitative
                and Qualitative Disclosures About Market
                Risk
            24Item
                4.
            Controls
                and Procedures
            24PART
                II – OTHER INFORMATIONItem
                1.
            Legal
                Proceedings
            26Item
                1A.
            Risk
                Factors
            26Item
                2.
            Unregistered
                Sales of Equity Securities and Use
                of Proceeds
            26Item
                3.
            Defaults
                Upon Senior Securities
            27Item
                4.
            Submission
                of Matters to a Vote of Security
                Holders
            27Item
                5.
            Other
                Information
            27Item
                6.
            Exhibits
            27Signature
            
            28










2


**PART
      I - FINANCIAL INFORMATION**





**Item
      1.  Financial Statements**





**SUPERTEX,
      INC.**


**CONDENSED
      CONSOLIDATED STATEMENTS OF INCOME**


*(unaudited)*


*(in
      thousands, except per share amounts)*





**Three
                Months Ended****June
                30, 2007**
            
            
            **July
                1, 2006**Net
                sales
            
            $
            20,762
            
            
            $
            24,565Cost
                of sales(1)
            
            
            8,076
            
            
            
            9,837Gross
                profit
            
            
            12,686
            
            
            
            14,728Research
                and development(1)
            
            
            3,765
            
            
            
            3,949Selling,
                general and administrative(1)
            
            
            3,646
            
            
            
            3,803Total
                operating expenses
            
            
            7,411
            
            
            
            7,752Income
                from operations
            
            
            5,275
            
            
            
            6,976Interest
                income
            
            
            1,380
            
            
            
            1,111Other
                income, net
            
            
            127
            
            
            
            177Income
                before provision for income taxes
            
            
            6,782
            
            
            
            8,264Provision
                for income taxes
            
            
            2,309
            
            
            
            3,348Net
                income
            
            $
            4,473
            
            
            $
            4,916Net
                income per share:Basic
            
            $
            0.32
            
            
            $
            0.36Diluted
            
            $
            0.32
            
            
            $
            0.35Shares
                used in net income per share computation:Basic
            
            
            13,769
            
            
            
            13,646Diluted
            
            
            13,998
            
            
            
            14,009(1)Includes
                amortization of stock-based compensation as follows.  See Note 2
                for more information:Cost
                of sales
            
            $
            142
            
            
            $
            65Research
                and development
            
            $
            276
            
            
            $
            387Selling,
                general and administrative
            
            $
            238
            
            
            $
            196





*See
      accompanying Notes to Unaudited Condensed Consolidated Financial
      Statements.*





3


**SUPERTEX,
      INC.**


**CONDENSED
      CONSOLIDATED BALANCE
      SHEETS**


*(unaudited,
      in thousands)*








**June
                30, 2007**
            
            
            **March
                31, 2007****ASSETS**Current
                assets:Cash
                and cash
                equivalents
            
            $
            21,369
            
            
            $
            22,652Short-term
                investments
            
            
            120,109
            
            
            
            116,264Trade
                accounts receivable, net
                of allowances of  $753 and $789
            
            
            12,571
            
            
            
            12,793Inventories
            
            
            16,060
            
            
            
            14,238Prepaid
                expenses and other
                current assets
            
            
            1,608
            
            
            
            2,172Deferred
                income
                taxes
            
            
            8,123
            
            
            
            8,123Total
                current
                assets
            
            
            179,840
            
            
            
            176,242Property,
                plant and equipment, net
            
            
            9,745
            
            
            
            8,651Other
                assets
            
            
            354
            
            
            
            140Deferred
                income taxes
            
            
            1,823
            
            
            
            899**TOTAL
                ASSETS**
            
            $
            191,762
            
            
            $
            185,932**LIABILITIES
                AND SHAREHOLDERS’ EQUITY**Current
                liabilities:Trade
                accounts
                payable
            
            $
            4,077
            
            
            $
            4,120Accrued
                salaries and employee
                benefits
            
            
            12,190
            
            
            
            12,102Other
                accrued
                liabilities
            
            
            1,663
            
            
            
            2,175Deferred
                revenue
            
            
            3,271
            
            
            
            2,965Income
                taxes
                payable
            
            
            1,532
            
            
            
            3,318Total
                current liabilities
            
            
            22,733
            
            
            
            24,680Income
                taxes payable, noncurrent
            
            
            5,064
            
            
            
            --TOTAL
                LIABILITIES
            
            
            27,797
            
            
            
            24,680Commitments
                and contingencies (See Note 7)Shareholders’
                equity:Preferred
                stock, no par value - 10,000 shares authorized, none
                outstanding
            
            
            --
            
            
            
            --Common
                stock, no par value - 30,000 shares authorized; issued and outstanding
                13,737 and 13,794 shares
            
            
            55,909
            
            
            
            54,741Retained
                earnings
            
            
            108,056
            
            
            
            106,511TOTAL SHAREHOLDERS' EQUITY
            
            
            163,965
            
            
            
            161,252**TOTAL
                LIABILITIES AND SHAREHOLDERS' EQUITY**
            
            $
            191,762
            
            
            $
            185,932*See
                accompanying Notes to Unaudited Condensed Consolidated Financial
                Statements*.





4


**SUPERTEX,
      INC.**


**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH
      FLOWS**


*(unaudited,
      in thousands)*




**Three
                Months Ended**CASH
                FLOWS FROM OPERATING ACTIVITIES
            
            **June
                30, 2007**
            
            
            **July
                1, 2006**Net
                income
            
            $
            4,473
            
            
            $
            4,916Non-cash
                adjustments to net income:Depreciation and amortization
            
            
            651
            
            
            
            609Provision
                for (reversal of) doubtful accounts and sales returns
            
            
            373
            
            
            
            (162
            )Provision for excess and obsolete inventories
            
            
            381
            
            
            
            597Stock-based compensation expense
            
            
            656
            
            
            
            648Tax benefit related to stock-based compensation plans
            
            
            213
            
            
            
            --Excess tax benefit related to stock-based compensation
                plans
            
            
            (113
            )
            
            
            (265
            )Gain
                on
                disposal of property, plant and equipment
            
            
            (200
            )
            
            
            --Changes
                in operating assets and liabilities:Short-term
                investments, categorized as trading
            
            
            (245
            )
            
            
            (133
            )Trade
                accounts receivable
            
            
            (151
            )
            
            
            (1,060
            )Inventories
            
            
            (2,203
            )
            
            
            (506
            )Prepaid
                expenses and other assets
            
            
            350
            
            
            
            (298
            )Trade
                accounts payable and accrued expenses
            
            
            (467
            )
            
            
            1,122Deferred
                revenue
            
            
            306
            
            
            
            1,633Deferred
                income taxes
            
            
            (924
            )
            
            
            --Income
                taxes payable
            
            
            3,185
            
            
            
            3,322Total
                adjustments
            
            
            1,812
            
            
            
            5,507Net
                cash provided by operating activities
            
            
            6,285
            
            
            
            10,423CASH
                FLOWS FROM INVESTING ACTIVITIESProceeds
                from disposal of property, plant and equipment
            
            
            200
            
            
            
            --Purchases
                of property, plant and equipment
            
            
            (1,745
            )
            
            
            (1,045
            )Purchases
                of short-term investments, categorized as available for
                sale
            
            
            (49,500
            )
            
            
            (94,624
            )Sales
                of short-term investments, categorized as available for
                sale
            
            
            45,900
            
            
            
            77,200Net
                cash used in investing activities
            
            
            (5,145
            )
            
            
            (18,469
            )CASH
                FLOWS FROM FINANCING ACTIVITIESProceeds
                from exercise of stock options and employee stock purchase
                plan
            
            
            709
            
            
            
            1,442Excess
                tax benefit related to stock-based compensation plans
            
            
            113
            
            
            
            265Repurchase
                of common stock
            
            
            (3,245
            )
            
            
            --Net
                cash provided by (used in) financing activities
            
            
            (2,423
            )
            
            
            1,707NET
                DECREASE IN CASH AND CASH EQUIVALENTS
            
            
            (1,283
            )
            
            
            (6,339
            )CASH
                AND CASH EQUIVALENTS:Beginning
                of period
            
            
            22,652
            
            
            
            27,654End
                of period
            
            
            21,369
            
            
            
            21,315Supplemental
                cash flow disclosures:Income
                taxes paid, net of refunds
            
            $
            51
            
            
            $
            26*See
                accompanying Notes to Unaudited Condensed Consolidated Financial
                Statements.*


5


SUPERTEX,
      INC.


NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(unaudited)




**Note
      1 – Organization and Basis of Presentation**





The
      accompanying unaudited condensed consolidated financial statements of Supertex,
      Inc. and its subsidiary have been prepared in accordance with accounting
      principles generally accepted (“GAAP”) in the United States of
      America.  This financial information reflects all adjustments, which
      are, in the opinion of the Company’s management, of normal recurring nature and
      necessary to present fairly the statements of financial position as of June
      30,
      2007 and March 31, 2007, results of operations for the three months ended June
      30, 2007 and July 1, 2006, and cash flows for the three months ended June 30,
      2007 and July 1, 2006.  The March 31, 2007 balance sheet was derived
      from the audited financial statements included in the 2007 annual report on
      Form
      10-K.  All significant intercompany transactions and balances have
      been eliminated.





The
      condensed consolidated financial statements included herein have been prepared
      by the Company, without audit, pursuant to the rules and regulations of the
      Securities and Exchange Commission.  Certain information and footnote
      disclosures normally included in these financial statements have been condensed
      or omitted pursuant to such rules and regulations, although the Company believes
      the disclosures which are made are adequate to make the information presented
      not misleading.  These financial statements should be read in
      conjunction with the audited condensed consolidated financial statements of
      Supertex, Inc. for the fiscal year ended March 31, 2007, which were included
      in
      the annual report on Form 10-K.





Interim
      results are not necessarily indicative of results for the full fiscal
      year.  The preparation of financial statements in conformity with
      accounting principles generally accepted in the United States of America
      requires management to make estimates and assumptions that affect the reported
      amounts of assets and liabilities and the disclosure of contingent assets and
      liabilities at the date of the financial statements as well as the reported
      amounts of revenue and expenses during the reporting period. Actual results
      could differ from those estimates, and such differences may be material to
      the
      financial statements. The results of operations for the three months ended
      June
      30, 2007 are not necessarily indicative of the results to be expected for any
      future periods.





The
      Company reports on a fiscal year basis and it operates and reports based on
      quarterly periods ending on the Saturday nearest the end of the applicable
      calendar quarter, except in a 53-week fiscal year, in which case the additional
      week falls into the fourth quarter of the fiscal year.  Fiscal 2008
      will be a 52-week year.  The three months ended June 30, 2007, March
      31, 2007, and July 1, 2006, all consist of thirteen weeks.





*Reclassification*





For
      presentation purposes, certain prior period amounts have been reclassified
      to
      conform to the reporting in the current period financial statements. These
      reclassifications do not affect the Company’s net income, cash flows or net
      shareholders’ equity.





*Recent
      Accounting Pronouncements*





In
      February 2007, the Financial Accounting Standards Board (FASB) issued SFAS
      No.
      159, *The Fair Value Option for Financial Assets and Financial Liabilities*(SFAS No. 159), which permits entities to elect to measure many financial
      instruments and certain other items at fair value that are not currently
      required to be measured at fair value. This election is irrevocable. SFAS No.
      159 will be effective for the Company in fiscal 2009. The Company is currently
      assessing the potential impact that the adoption of SFAS No. 159 will have
      on
      its financial statements.





In
      September 2006, the FASB issued SFAS No. 157, *Fair Value Measurements*
      (SFAS No. 157), which defines fair value, establishes a framework for measuring
      fair value in generally accepted accounting principles and expands disclosures
      about fair value measurements. SFAS No. 157 does not require new fair value
      measurements, but provides guidance on how to measure fair value by providing
      a
      fair value hierarchy used to classify the source of the information. This
      statement is effective for the Company in fiscal 2009. The Company is currently
      assessing the potential impact that the adoption of SFAS No. 157 will have
      on
      its financial statements.





6


SUPERTEX,
        INC.
 NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
 (unaudited)






In
      June
      2006, the FASB issued FASB Interpretation No. 48, *Accounting for Uncertainty
      in Income Taxes: An Interpretation of FASB statement No. 109*(FIN 48). FIN
      48 clarifies the accounting for uncertainty in income taxes recognized in an
      enterprise’s financial statements in accordance with SFAS No. 109. This
      interpretation defines the minimum recognition threshold a tax position is
      required to meet before being recognized in the financial statements. The
      Company adopted FIN 48 on April 1, 2007 as a change in accounting principle,
      and
      has recorded the cumulative effect of adoption of $93,000 as a decrease in
      the
      opening balance of retained earnings in the first quarter of fiscal 2008, as
      permitted by the transition provisions of FIN 48. See Note 5.





**Note
      2 - Stock-Based Compensation**





Effective
      April 2, 2006, the Company adopted the provisions of SFAS No. 123(R),
*Share-Based Payment.* SFAS 123R establishes accounting for stock-based
      awards exchanged for employee services. Accordingly, stock-based compensation
      cost is measured at grant date, based on the fair value of the award, and is
      recognized as expense over the requisite service period for the
      employee.





The
      effects of recording stock-based compensation for the three months ended June
      30, 2007 and July 1, 2006 were as follows:





**Three
                Months Ended****June
                30, 2007**
            
            
            **July
                1, 2006**Stock-based
                compensation expense
            
            $
            656
            
            
            $
            648Tax
                effect of stock-based compensation expense
            
            
            (62
            )
            
            
            (48
            )Effect
                on net income
            
            $
            594
            
            
            $
            600





During
      the three months ended June 30, 2007, the Company granted options with an
      estimated total grant date fair value of $168,000. Of this amount, the
      Company estimated that the stock-based compensation for the awards not expected
      to vest was $38,000. As of June 30, 2007, the unrecorded stock-based
      compensation cost balance related to stock options was $5,504,000 (net of
      forfeitures) and will be recognized over an estimated weighted average
      amortization period of 3.25 years.





Of
      the
      stock-based compensation cost, $94,000 and $13,000 were capitalized as inventory
      at June 30, 2007 and July 1, 2006, respectively.





***Valuation
      Assumptions***





In
      valuing the stock-based compensation expense, the options and awards are
      stratified into two categories, namely: directors and officers (“D&O”) and
      all other employees (“All Others”) as the experiences of these two groups are
      different for the expected term of the options.





7




SUPERTEX,
        INC.
 NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
 (unaudited)





The
      fair
      value of each option grant is estimated on the date of grant using the
      Black-Scholes option valuation model and the straight-line attribution approach
      with the following weighted-average assumptions:





**Three
                Months Ended****June
                30, 2007**
            
            
            **July
                1, 2006****D&O**
            
            
            **All
                Others**
            
            
            **D&O**
            
            
            **All
                Others**Expected
                term (years)
            
            
            5.75
            
            
            
            4.25
            
            
            
            5.75
            
            
            
            4.5Stock
                volatility
            
            
            49
            %
            
            
            47
            %
            
            
            58
            %
            
            
            52
            %Risk-free
                interest rates
            
            
            4.82
            %
            
            
            4.93
            %
            
            
            5.04
            %
            
            
            5.03
            %Dividends
                during expected term
            
            
            0
            %
            
            
            0
            %
            
            
            0
            %
            
            
            0
            %





The
      Company analyzed various data points to determine the most accurate expected
      term by group. In the course of its analysis, it considered various factors,
      including vesting terms and period of awards, contractual term of the award,
      employee historical exercise trends, post-vesting employment termination
      behavior and various other factors.  The Company has identified its
      own historical volatility to be the most appropriate and most representative
      of
      the expected volatility rate to be used for valuing stock-based compensation
      under the Black-Scholes option-pricing model. Historical reports were pulled
      from the National Association of Securities Dealer Automated Quotations
      (“NASDAQ”). The expected volatility was based on the expected term of the two
      groups of options to be valued.  The Company continues
      to estimate the risk-free rate based on the U.S. Treasury yield curve
      in effect at the time of grant.  The Company has never paid cash
      dividends and does not currently intend to pay cash dividends.  Thus,
      the Company assumes an expected dividend yield of zero.





Under
      the
      Company’s 1991 and 2001 Stock Option Plans (“Option Plans”), a total of
      4,825,715 shares of Common Stock are authorized for issuance.  The
      1991 Plan expired in June 2001, thus there were no options available for grant
      thereafter, although there are options that remain outstanding under the 1991
      Plan.  Under the Option Plans, options have been typically granted
      once a quarter (on the first business day of the third month of the quarter),
      and valued at the fair value of the Company’s common stock on the date of
      grant.  Options generally expire seven years from grant date or thirty
      days after termination of service, whichever occurs first.  Options
      are generally exercisable beginning one year from date of grant and generally
      vest ratably over a five-year period.  On August 24, 2006, the
      Company’s board of directors approved a change in grant policy of the Plan
      to****grant only non-statutory stock options to better
      align the Company’s compensation plan to employee incentives and to company
      objectives.





The
      following table summarizes the combined activity under the Option Plans for
      the
      three months ended June 30, 2007:





**Options
                Outstanding****Available
                For**
            
            
            **Number
                of**
            
            
            **Weighted
                Average****Grant**
            
            
            **Shares**
            
            
            **Exercise
                Price**Balance,
                March 31, 2007
            
            
            885,579
            
            
            
            1,052,370
            
            
            $
            27.08Granted
            
            
            (11,500
            )
            
            
            11,500
            
            
            
            33.53Exercised
            
            
            --
            
            
            
            (44,940
            )
            
            
            13.91Canceled
            
            
            16,500
            
            
            
            (16,500
            )
            
            
            30.46Balance,
                June 30, 2007
            
            
            890,579
            
            
            
            1,002,430
            
            
            $
            27.67





The
      weighted average fair values of options, as determined under SFAS 123R, granted
      under the Option Plans during the three months ended June 30, 2007 and July
      1,
      2006, were $14.65 and $19.59 per share, respectively.  The total
      intrinsic value of options (which is the amount by which the stock price
      exceeded the exercise price of the option on the date of the exercise) exercised
      during the three months ended June 30, 2007 was $796,000, compared to $1,204,000
      for the same period last fiscal year.  During the three months ended
      June 30, 2007 and July 1, 2006, the amounts of cash received from employees
      as a
      result of employee stock option exercises were $625,000 and $907,000,
      respectively.





8




SUPERTEX,
        INC.
 NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
 (unaudited)






The
      options outstanding and exercisable at June 30, 2007, under the Option Plans
      were in the following exercise price ranges:





**Options
                Outstanding**
            
            **Options
                Exercisable****Range
                of Exercise Prices**
            
            **Number
                Outstanding**
            
            **Weighted-Average
                Remaining Contractual Life (Years)**
            
            **Weighted-Average
                Exercise Price**
            
            **Number
                Outstanding**
            
            **Weighted-Average
                Exercise Price**$10.75  -  $15.83
            
            137,775
            
            1.54
            
            $12.12
            
            115,075
            
            $11.8317.06  -    18.52
            
            287,805
            
            3.77
            
            17.30
            
            100,385
            
            17.3319.37  -    29.00
            
            91,200
            
            3.63
            
            23.25
            
            35,000
            
            21.0233.53  -    46.92
            
            485,650
            
            5.18
            
            39.02
            
            118,660
            
            42.17$
                10.75  -  $46.92
            
            1,002,430
            
            4.13
            
            27.65
            
            369,120
            
            $23.95





The
      total
      intrinsic value of options outstanding and options exercisable as of June 30,
      2007 were $7,428,000 and $4,012,000, respectively.





***Employee
      Stock Purchase Plan (“ESPP”).*****Under the 2000 ESPP,
      eligible employees may elect to withhold up to 20% of their cash compensation
      to
      purchase shares of the Company’s common stock at a price equal to 85% of the
      market value of the stock at the beginning or ending of a six-month offering
      period, whichever is lower.  An eligible employee may purchase no more
      than 500 shares during any six-month offering period.  In December
      2005, the Company’s board of the directors approved an amendment of the ESPP
      effective May 1, 2006, to satisfy the requirement as a “non-compensatory” plan
      under the provision of SFAS 123R and thus eliminate any compensation-related
      expense associated with the ESPP on a go-forward basis.  As a result,
      the purchase discount was reduced to 5% from 15% of market value of the stock
      at
      the purchase.  Additionally, the purchase price under the amended plan
      will be based solely on the market price at the time of purchase, and no longer
      based on the lower of the market value at the beginning or ending of the
      six-month offering period.





**Note
      3 – Inventories**





The
      Company’s inventories consist of high technology semiconductor devices and
      integrated circuits that are specialized in nature, subject to rapid
      technological obsolescence and are sold in a highly competitive
      industry.  Inventory balances at the end of each period are adjusted
      to approximate the lower of cost or market value.





Inventories
      consisted of *(in thousands)*:





**June
                30, 2007**
            
            
            **July
                1, 2006**Raw
                materials
            
            $
            1,666
            
            
            $
            1,648Work-in-process
            
            
            9,581
            
            
            
            8,382Finished
                goods
            
            
            4,813
            
            
            
            4,208Inventories
            
            $
            16,060
            
            
            $
            14,238




The
      Company wrote down inventory totaling $381,000 for the three months ended June
      30, 2007. For the comparable period in fiscal 2007, the Company wrote down
      inventory totaling $597,000. The Company realized gross margin benefits of
      $398,000 for the three months ended June 30, 2007 due to sales of previously
      reserved inventory.  Such benefit was $516,000 for the three months
      ended July 1, 2006.





9




SUPERTEX,
        INC.
 NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
 (unaudited)




Inventories
      at distributors and inventories held on consignment at the Company’s OEM
      customers’ hubs on June 30, 2007 and March 31, 2007 were $1,491,000 and
      $1,527,000, respectively. Due to the uncertainty associated with possible
      returns and pricing concessions, the Company defers the recognition of revenue
      on shipments to all distributors, domestic and foreign, and the related costs
      of
      sales until the distributors have sold the products to their end-user customers.
      Sales through the distributors are made primarily under arrangements allowing
      limited rights of return, limited price protection, and the right of stock
      rotation on merchandise unsold by distributors.  For inventory at OEM
      hubs, which we own and is included in our inventory at cost, revenue is not
      recognized until customers draw the product from the hubs.





**Note
      4 - Comprehensive Income**





Comprehensive
      income, which includes all changes in equity during a period from non-owner
      sources, did not differ from net income for any of the periods
      presented.





**Note
      5 – Income Taxes**





The
      provision for income taxes for the three months ended June 30, 2007 was
      $2,309,000 at the effective tax rate of 34%, compared to $3,348,000 and 41%
      for
      the same period in the prior fiscal year. The income tax provision for the
      interim period reflects the Company’s estimated annual income tax rate and
      differs from the taxes computed at the federal and state statutory rates
      primarily due to the effect of non-deductible stock-based compensation expense,
      tax exempt interest income and research and development credits.





The
      effective tax rate for the three months ended July 1, 2006 was impacted by
      an
      adjustment to provide for contingencies related to an IRS audit. Excluding
      this
      adjustment, the Company’s tax rate would have been 37%. Additionally, in the
      three months ended July 1, 2006, the federal research and development credit
      had
      not been renewed.  It was subsequently renewed during the Company’s
      third quarter of fiscal 2007.





The
      Company adopted the provisions of FIN 48 on April 1, 2007.  As a
      result of the implementation of FIN 48, *Accounting for Uncertainty in Income
      Taxes - an interpretation of FASB Statement No. 109*, the cumulative effect
      adjustment was an increase in tax liability and a decrease of $93,000 to the
      April 1, 2007 retained earnings balance.  Upon adoption, the liability
      for income taxes associated with uncertain tax positions at April 1, 2007 was
      $4,713,000.  This liability can be reduced by $874,000 of offsetting
      tax benefits associated with the correlative effects of potential transfer
      pricing adjustments, state income taxes, and other receivables.  The
      net amount of $3,839,000, if recognized, would favorably affect the company’s
      effective tax rate.





As
      of
      April 1, 2007, the Company reclassified $5,064,000 of income tax liabilities
      from current to noncurrent liabilities because payment of cash is not
      anticipated within one year of the balance sheet date. Associated with the
      Company's fiscal 2003 IRS audit, a $1,073,000 payment was made in July and
      was
      classified as a current liability as of April 1, 2007. There have been no
      significant changes in these amounts in the quarter ended June 30,
      2007.





Included
      in the balance of unrecognized tax benefits at April 1, 2007 is $235,000 related
      to tax positions, interest, and penalties for which it is reasonably possible
      that the statute of limitations will expire in various jurisdictions within
      the
      next twelve months.





The
      Company records interest and penalties related to unrecognized tax benefits
      in
      income tax expense.  At April 1, 2007, the Company had approximately
      $649,000 in estimated interest and $774,000 in estimated penalties related
      to
      uncertain tax positions. These liabilities can be reduced by $264,000 of
      offsetting tax benefits. The net amount of $1,159,000, if recognized, would
      favorably affect the Company’s effective tax rate.





10




SUPERTEX,
        INC.
 NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
 (unaudited)




The
      Company and its subsidiaries are subject to taxation in
      various jurisdictions, including federal, state and foreign. The
      Company’s federal and state income tax returns are generally not subject to
      examination by taxing authorities for fiscal years before 2002.  The
      U.S. federal income tax return for fiscal years 2002, 2003, and 2004 are
      currently under examination by the Internal Revenue Service (“IRS”). Management
      continues to assess the impact of the federal uncertain tax positions under
      examination, along with the resulting state adjustments. The Company paid
      $1,073,000 in July 2007 in connection with the fiscal 2003
      audit.  The Company cannot conclude on the range of estimates
      resulting from the fiscal 2002, 2003 and 2004 IRS examinations.





**Note
      6 - Net Income per Share**





Basic
      earnings per share (“EPS”) is computed as net income divided by the weighted
      average number of common shares outstanding for the period.  Diluted
      EPS reflects the potential dilution that could occur from common shares that
      may
      be issued through stock options only, since the Company does not have warrants
      or other convertible securities outstanding.  A reconciliation of the
      numerator and denominator of basic and diluted earnings per share is provided
      as
      follows (*in thousands, except per share amounts*):





**Three
                Months Ended****June
                30, 2007**
            
            
            **July
                1, 2006**BASIC:Net
                income
            
            $
            4,473
            
            
            $
            4,916Weighted
                average shares outstanding for the period
            
            
            13,769
            
            
            
            13,646Net
                income per share
            
            $
            0.32
            
            
            $
            0.36DILUTED:Net
                income
            
            $
            4,473
            
            
            $
            4,916Weighted
                average shares outstanding for the period
            
            
            13,769
            
            
            
            13,646Dilutive
                effect of stock options
            
            
            229
            
            
            
            363Total
            
            
            13,998
            
            
            
            14,009Net
                income per share
            
            $
            0.32
            
            
            $
            0.35





Options
      to purchase 512,660 shares of the Company’s common stock at an average price of
      $38.53 per share, and 373,274 shares at an average price of $36.71 per share
      for
      the three months ended June 30, 2007 and July 1, 2006, respectively, were
      outstanding but were not included in the computation of diluted earnings per
      share because their effect would have been anti-dilutive.





**Note
      7 – Commitments and Contingencies**





FASB
      Interpretation No. 45, or FIN 45, *Guarantor’s Accounting and Disclosure
      Requirements for Guarantees, Including Indirect Guarantees of Indebtedness
      of
      Others,* requires that upon issuance of a guarantee, the guarantor must
      recognize a liability for the fair value of the obligation it assumes under
      that
      guarantee.  In addition, FIN 45 requires disclosures about the
      guarantees that an entity has issued, including a roll forward of the entity’s
      product warranty liabilities.




***Indemnification***





As
      is
      customary in the Company’s industry, the Company has agreed to defend certain
      customers, distributors, suppliers, and subcontractors against certain claims,
      which third parties may assert that its products allegedly infringe certain
      of
      their intellectual property rights, including patents, trademarks, trade
      secrets, or copyrights.  The Company has agreed to pay certain amounts
      of any resulting damage awards and typically has the option to replace any
      infringing product with non-infringing product.  The terms of these
      indemnification obligations are generally perpetual from the effective date
      of
      the agreement.  In certain cases, there are limits on and exceptions
      to the Company’s potential liability for indemnification relating to
      intellectual property infringement claims.  The Company cannot
      estimate the amount of potential future payments, if any, that it might be
      required to make as a result of these agreements.  To date, the
      Company has not paid any damage awards nor has been required to defend any
      claims related to its indemnification obligations, and accordingly, it has
      not
      accrued any amounts for indemnification obligations.  However, there
      can be no assurance that the Company will not have any financial exposure under
      those indemnification obligations in the future.





11




SUPERTEX,
        INC.
 NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
 (unaudited)




***Legal
      Proceedings***





From
      time
      to time the Company is subject to possible claims or assessments from third
      parties arising in the normal course of business.  Management has
      reviewed such possible claims and assessments with legal counsel and believes
      that it is unlikely that they will result in a material adverse impact on the
      Company’s financial position,  results of operations or cash
      flows.  The Company is not currently involved in any legal proceedings
      that it believes will materially and adversely affect its business or financial
      statements.





***Product
      Warranty***





The
      Company’s policy is to replace defective products at its own expense for a
      period of 90 days from date of shipment.  This liability is limited to
      replacement of the product, freight and delivery costs or refund or credit
      the
      purchase price.  On certain occasions, the Company may pay for
      rework.  The Company usually provides a replaced/reworked product at
      resale value rather than a refund or credit to meet the warranty
      obligations.  This policy is necessary to protect the Company’s
      distributors, to improve customer satisfaction, and for competitive
      reasons.  Additionally, it is the custom in Japan and Europe to
      provide this benefit.





The
      Company records a reduction to revenue for estimated product returns, including
      warranty related returns, in the same period as the related revenues are
      recorded.  These estimates are based on historical experience,
      analysis of outstanding Return Material Authorization and Allowance
      Authorization data and any other form of notification received of pending
      returns.





The
      reductions to revenue for estimated
      product returns for the three months ended June 30, 2007 and July 1, 2006 are
      as
      follows*(in
      thousands)*:





**Description**
            
            **Balance
                at Beginning of Period**
            
            
            **Additions
                (1)**
            
            
            **Deductions
                (2)**
            
            
            **Balance
                at End of Period**Three
                months ended June 30, 2007Allowance
                for sales returns
            
            $
            199
            
            
            $
            375
            
            
            $
            409
            
            
            $
            165Three
                months ended July 1, 2006Allowance
                for sales returns
            
            $
            525
            
            
            $
            153
            
            
            $
            216
            
            
            $
            462


______________


*(1)Allowances
      for
      sales returns are charged as a reduction to revenue.*


*(2)
      Represents
      amounts written off against the allowance for sales returns.*




While
      the
      Company’s sales returns are historically within the expectations and the
      allowance established, it cannot guarantee that it will continue to experience
      the same return rates that it has had in the past.  Any significant
      increase in product failure rates and the resulting sales returns could have
      a
      material adverse impact on the operating results for the period or periods
      in
      which such returns materialize.





12




SUPERTEX,
        INC.
 NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
 (unaudited)




***Operating
      Lease Obligations***





The
      Company’s future minimum lease payments and sublease income under non-cancelable
      operating leases at June 30, 2007 are as follows (*in
      thousands*):





**Payment
                Due by Year**
            
            **Operating
                Lease**
            
            
            **Estimated
                Sublease Income**Less
                than 1 year
            
            $
            1,039
            
            
            $
            1072
                years
            
            
            1,034
            
            
            
            --3
                years
            
            
            991
            
            
            
            --4
                years
            
            
            803
            
            
            
            --5
                years
            
            
            --
            
            
            
            --Thereafter
            
            
            --
            
            
            
            --$
            3,867
            
            
            $
            107





The
      Company leases facilities under non-cancelable lease agreements expiring at
      various times through April 2011.  Rental expense net of sublease
      income for the three months ended June 30, 2007 and July 1, 2006, amounted
      to
      $217,000 and $234,000, respectively.





****Note
      8 – Common
      Stock Repurchase**





Share
      repurchase activities for the three months ended June 30, 2007 are shown
      below.  There were no shares repurchased during the three months ended
      July 1, 2006.





**Three
                Months Ended****June
                30, 2007**
            
            
            **July
                1, 2006**Number
                of shares repurchased
            
            
            104,700
            
            
            
            --Cost
                of shares repurchased
            
            $
            3,245,000
            
            
            
            --Average
                price per share
            
            $
            31.00
            
            
            
            --





Since
      the
      inception of the repurchase program in 1992 through June 30, 2007, the Company
      repurchased a total of 1,275,600 shares of the common stock for an aggregate
      cost of $12,425,000.  Upon their repurchase, shares are restored to
      the status of authorized but unissued shares.  As of June 30, 2007, a
      total of 624,400 shares remain authorized for repurchase under the
      program.





**Note
      9 – Segment Information**





The
      Company operates in one business segment comprising of the design, development,
      manufacturing and marketing of high voltage semiconductor devices including
      analog and mixed signal integrated circuits.  The Company's principal
      markets are in the United States, Europe, and Asia.  The Company’s
      chief operating decision maker, who is currently the Company’s Chief Executive
      Officer, reviews financial information presented on a consolidated basis for
      purposes of making operating decisions and assessing financial
      performance.





13


SUPERTEX,
        INC.
 NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
 (unaudited)






Below
      is
      a summary of sales by major geographic area *(in
      thousands):*





**Three
                Months Ended****Net
                Sales**
            
            **June
                30, 2007**
            
            
            **July
                1, 2006**Asia
                (excluding China & Japan)
            
            $
            3,722
            
            
            $
            3,567China
            
            
            4,513
            
            
            
            8,500Japan
            
            
            2,211
            
            
            
            1,950Europe
            
            
            2,569
            
            
            
            2,419United
                States
            
            
            7,584
            
            
            
            7,527Other
            
            
            163
            
            
            
            602Net
                Sales
            
            $
            20,762
            
            
            $
            24,565





Net
      property, plant and equipment by country was as follows *(in
      thousands):*





**Country**
            
            **June
                30, 2007**
            
            
            **July
                1, 2006**United
                States
            
            $
            8,311
            
            
            $
            7,516Hong
                Kong
            
            
            1,434
            
            
            
            1,135$
            9,745
            
            
            $
            8,651





**Note
      10 – Significant Customers**





The
      Company sells its products to OEMs through its direct sales and marketing
      personnel, and through its independent sales representative and
      distributors.  Sales to distributors and related cost of sales are
      recognized upon resale to end-user customers.  For the three months
      ended June 30, 2007, none of the Company’s distributors or OEM customers
      accounted for 10% or more of total Company net sales.  However, the
      Company estimates that approximately 15% of its total sales were to a medical
      instrumentation company through various distributors and contract
      manufacturers.





For
      the
      comparable period in fiscal 2007, two of the Company’s customers, a distributor
      and a contract manufacturer accounted for 16% and 13% of net sales,
      respectively.  The Company estimates that approximately 75% of the
      combined sales to these two significant customers were subsequently sold to
      a
      major communications equipment company, thereby making this communications
      equipment company a significant end user customer for Supertex.





One
      of
      the Company’s customers accounted for 21% of gross accounts receivable as of
      March 31, 2007.


14


**Item
      2.  Management's Discussionand
      Analysis of Financial Condition and Results of Operations**





The
      following discussions and analyses should be read in conjunction with the
      Condensed Consolidated Financial Statements and related Notes thereto contained
      elsewhere in this Report.  The information contained in this quarterly
      report on Form 10-Q is not a complete description of our business or the risks
      associated with an investment in our common stock.  You are urged to
      carefully review and consider the various disclosures we made in this Report
      and
      in other reports filed with the SEC, including the annual report on Form 10-K
      for the year-ended March 31, 2007.





**Cautionary
      Statement Regarding Forward Looking Statements**





*This
      Quarterly Report on Form 10-Q includes forward-looking
      statements.  These forward-looking statements are not historical
      facts, and are based on current expectations, estimates, and projections about
      our industry, our beliefs, our assumptions, and our goals and
      objectives.  Words such as "anticipates," "expects," "intends,"
      "plans," "believes," "seeks," and "estimates, " and variations of these words
      and similar expressions, are intended to identify forward-looking
      statements.  Examples of the kinds of forward-looking statements in
      this report include statements regarding the following:  (1) our
      belief that we have substantial production capacity in place to handle any
      projected increase in business for the next fiscal year; (2) our expectation
      that quarterly R&D spending during fiscal 2008 is likely to remain at or
      above the level of our first quarter of fiscal 2008 but spending as a percentage
      of sales may fluctuate;  (3)**the Company’s belief that it has
      recorded adequate tax liabilities to cover any additional taxes that maybe
      be
      assessed in the IRS audit of fiscal 2002, 2003 and 2004;**(4) that we
      expect to spend approximately $5,400,000  for capital acquisitions
      during fiscal year 2008; (5) our expectation for growth in the LED Lighting
      market so that it will become a significant market for us;  (6) our
      belief that the medical ultrasound machine market will continue to grow globally
      and that we will have increasing sales of high voltage analog switches and
      multiplexers, high voltage pulser ICs, high-speed MOSFET drivers, and discrete
      high voltage FETs; (7) our intent to invest in product development in the
      ultrasound market and contributions to our revenue growth in fiscal 2008
      from custom high voltage pulsers including those we plan to introduce along
      with ultrasound receiver blocks; (8) our view that our overall sales to the
      Telecom market will experience flat to moderate growth , (9) our expectation
      for
      increasing sales in the LED Lighting market during fiscal 2008, especially
      in
      the second half; and (10) our growth strategy relying on continuous introduction
      of new products and technologies. These statements are only predictions, are
      not
      guarantees of future performance, and are subject to risks, uncertainties,
      and
      other factors, some of which are beyond our control and are difficult to
      predict, and could cause actual results to differ materially from those
      expressed or forecasted in the forward-looking
      statements.**These risks and uncertainties include material
      adverse changes in the demand for our customer’s products in which the Company’s
      products are used; competition to supply semiconductor devices in the markets
      in
      which the Company competes increases and causes price erosion; demand does
      not
      materialize and increase for recently released customer products incorporating
      the Company’s products; that we have delays in developing and releasing into
      production our planned new products, that there could be unexpected
      manufacturing issues as production ramps up; the demand for the Company’s
      products or results of its product development changes such that it would be
      unwise not to decrease research and development; that the IRS will determine
      that more US income was realized than the Company claimed or that fewer expenses
      were allowable; and that some of the Company’s equipment will not be
      unexpectedly damaged or obsoleted, thereby requiring replacement; as well as
      those described in " Factors Which May Affect Operating Results" under Item
      1A
      of Part I , “Risk Factors” in the Company’s  annual report of Form
      10-K for the fiscal year ended March 31, 2007.  The information
      included in this Form 10-Q is provided as of the filing date with the SEC and
      future events or circumstances could differ significantly from the
      forward-looking statements included herein.  Accordingly, the readers
      are cautioned not to place undue reliance on such statements. Except as required
      by law, the Company undertakes no obligation to update any forward-looking
      statement, as a result of new information, future events, or
      otherwise.*


15


**Critical
      Accounting Policies**





Our
      critical accounting policies are those that both (1) are most important to
      the
      portrayal of the financial condition and results of operations and (2) require
      management’s most difficult, subjective, or complex judgments, often requiring
      estimates about matters that are inherently uncertain.  Except for
      income taxes, there have been no material changes from the methodology applied
      by management for critical accounting estimates previously disclosed in our
      most
      recent Annual Report on Form 10-K. The methodology applied to management’s
      estimate for income taxes has changed due to the implementation of a new
      accounting pronouncement as described below.





***Income
      Taxes***





In
      June
      2006, the FASB issued FASB Interpretation No.48, *Accounting for Uncertainty
      in Income Taxes: An Interpretation of FASB Statement No. 109*(FIN 48). FIN
      48 became effective for us beginning fiscal 2008. FIN 48 addressed the
      determination of how tax benefits claimed or expected to be claimed on a tax
      return should be recorded in the financial statements. Under FIN 48, we
      recognize the tax benefit from an uncertain tax position only if it is more
      likely than not that the tax position will be sustained on examination by the
      taxing authorities, based on the technical merits of the position. The tax
      benefits recognized in the financial statements from such a position are
      measured based on the largest benefit that has a greater than fifty percent
      likelihood of being realized upon ultimate resolution. The impact of our
      reassessment of our tax positions in accordance with FIN 48 resulted in a
      cumulative effect upon adoption of $93,000, which was recorded as a decrease
      in
      the opening balance of our retained earnings on April 1, 2007.





For
      additional information regarding the adoption of FIN 48, see Note 5 to the
      accompanying condensed consolidated financial statements. For further discussion
      of our critical accounting estimates related to income taxes, see our 2007
      Annual Report on Form 10-K.





**Overview**





We
      design, develop, manufacture, and market integrated circuits (ICs), including
      analog and mixed signal devices utilizing state-of-the-art high voltage DMOS,
      HVCMOS and HVBiCMOS analog and mixed signal technologies.  We supply
      standard and custom high voltage interface products primarily for use in the
      imaging, medical electronics, telecommunications (telecom), and industrial
      markets.  We also supply custom integrated circuits for our customers
      using customer-owned designs and mask toolings with our process
      technologies.





**Results
      of Operations**





***Net
      Sales***





We
      operate in one business segment comprising the design, development,
      manufacturing and marketing of high voltage semiconductor devices including
      analog and mixed signal integrated circuits (ICs). We have a broad base of
      customers, who in some cases manufacture end products spanning multiple markets.
      As such, the assignment of revenue to the aforementioned markets requires the
      use of estimates, judgment, and extrapolation.  Actual results may
      differ from those reported.During this fiscal quarter
      we reviewed our assignment of products to
      markets and have made adjustments by including a new market, “LED lighting,”
renaming “Other” to “Industrial/other,” and making certain changes to product
      market assignments.  We expect that the LED lighting market, which
      includes drivers for LED backlights for TV flat screens and monitors as well
      as
      drivers for LED general lighting applications, will grow to become a significant
      market for Supertex.  The Industrial/other market includes discretes
      and ICs for industrial controls and many general applications.





16


Our
      estimated breakdown of product sales to customers in the Medical Electronics,
      Imaging, Industrial/other, Telecom, and LED lighting markets under our revised
      methodology for the most recent five quarters is shown in the following table
      *(dollars in
      thousands)**.*





**Three
                Months Ended****Net
                Sales**
            
            **June
                30, 2007**
            
            
            **March
                31, 2007**
            
            
            **December 30,
                2006**
            
            
            **September
                30, 2006**
            
            
            **July
                1, 2006**Medical
                Electronics
            
            $
            8,210
            
            
            $
            6,897
            
            
            $
            7,218
            
            
            $
            8,077
            
            
            $
            7,144Imaging
            
            
            6,209
            
            
            
            9,881
            
            
            
            10,422
            
            
            
            11,331
            
            
            
            10,607Industrial/Other
            
            
            3,925
            
            
            
            3,839
            
            
            
            4,362
            
            
            
            5,091
            
            
            
            4,362Telecom
            
            
            1,545
            
            
            
            1,698
            
            
            
            1,628
            
            
            
            1,794
            
            
            
            2,257LED
                Lighting
            
            
            873
            
            
            
            521
            
            
            
            468
            
            
            
            228
            
            
            
            195Net
                Sales
            
            $
            20,762
            
            
            $
            22,836
            
            
            $
            24,098
            
            
            $
            26,521
            
            
            $
            24,565





Net
      sales
      for the three months ended June 30, 2007 were $20,762,000, a 15% decrease
      compared to $24,565,000 for the same period of the prior fiscal year. The
      year-over-year decrease in net sales is primarily attributed to a decrease
      in
      our EL inverter and telecommunications unit shipments due to reduced demand
      for
      these products from our customers, as well as a reduction in average selling
      prices in certain products, partially offset by an increase in unit shipments
      to
      our medical ultrasound and LED lighting customers. Net sales decreased 9% from
      $22,836,000 when compared to the quarter ended March 31, 2007 due to a reduction
      in unit shipments of EL inverters.





The
      table
      below shows the breakdown of net sales to customers by end market for the three
      months ended June 30, 2007, July 1, 2006, and March 31, 2007, as well as
      year-over-year and quarterly sequential percentage changes *(dollars in
      thousands)*.





**Three
                Months Ended****Net
                Sales**
            
            **June
                30, 2007**
            
            
            **March
                31, 2007**
            
            
            **July
                1, 2006**
            
            
            **Sequential
                Change**
            
            
            **Year-Over-Year
                Change**Medical
                Electronics
            
            $
            8,210
            
            
            $
            6,897
            
            
            $
            7,144
            
            
            
            19
            %
            
            
            15
            %Imaging
            
            
            6,209
            
            
            
            9,881
            
            
            
            10,607
            
            
            
            -37
            %
            
            
            -41
            %Industrial/Other
            
            
            3,925
            
            
            
            3,839
            
            
            
            4,362
            
            
            
            2
            %
            
            
            -10
            %Telecom
            
            
            1,545
            
            
            
            1,698
            
            
            
            2,257
            
            
            
            -9
            %
            
            
            -32
            %LED
                Lighting
            
            
            873
            
            
            
            521
            
            
            
            195
            
            
            
            68
            %
            
            
            348
            %Net
                Sales
            
            $
            20,762
            
            
            $
            22,836
            
            
            $
            24,565
            
            
            
            -9
            %
            
            
            -15
            %





**Three
                Months Ended****Markets**
            
            **June
                30, 2007**
            
            
            **March
                31, 2007**
            
            
            **July
                1, 2006**Medical
                Electronics
            
            
            40
            %
            
            
            30
            %
            
            
            29
            %Imaging
            
            
            30
            %
            
            
            43
            %
            
            
            43
            %Industrial/Other
            
            
            19
            %
            
            
            17
            %
            
            
            18
            %Telecom
            
            
            7
            %
            
            
            8
            %
            
            
            9
            %LED
                Lighting
            
            
            4
            %
            
            
            2
            %
            
            
            1
            %Net
                Sales
            
            
            100
            %
            
            
            100
            %
            
            
            100
            %





The
      Medical Electronics market accounted for the highest sales of all of our markets
      for the three months ended June 30, 2007.  Sales to the Medical
      Electronics market for the three months ended June 30, 2007 were $8,210,000,
      as
      sales increased 15% compared to the same period in the prior fiscal year, and
      increased 19% sequentially.  The year-over-year increase in net sales
      is due to higher demand reflected in strong shipments of our high voltage pulser
      circuits and chipsets and due to higher foundry shipments.  The
      sequential increase in net sales is primarily due to a rebound in demand of
      our
      analog switches, as our customers’ channel inventory cleared near the beginning
      of our first quarter of fiscal 2008.





In
      recent
      years, the ultrasound market experienced significant growth in the
      transportable, hand-carried ultrasound (HCU) units.  These
      high-performance, portable, affordable systems are accelerating the
      proliferation of ultrasound imaging to medical specialties other than the
      traditional clinical applications.  Geographically, the market is
      expanding as well, as China, Korea and India are now designing and producing
      medical ultrasound machines.  We believe that sales of our high
      voltage analog switches and multiplexers, high voltage pulser ICs, high-speed
      MOSFET drivers, and discrete high voltage FETs to this market will continue
      to
      increase as the ultrasound market continues to expand globally.  We
      are heavily investing in product development for the ultrasound market and
      we
      expect to introduce more new integrated pulser ICs as well as ultrasound
      receiver blocks.  Custom high voltage pulsers are projected to
      contribute to our revenue growth in fiscal 2008.




17




Sales
      in
      the Imaging market for the three months ended June 30, 2007 decreased 41% to
      $6,209,000 when compared to the same period a year ago and decreased 37%
      sequentially. The year-over-year and sequential decreases in net sales are
      primarily attributable to the reduced demand from the Company’s major customer
      in this market for electroluminescent (EL) drivers for cellular
      phones.




Sales
      in
      the Industrial/other market for the three months ended June 30, 2007 of
      $3,925,000 decreased 10% when compared to the same period a year ago and
      increased 2% sequentially.  The year-over-year decrease is primarily
      due to reduced foundry shipments.




Sales
      to
      the Telecom market decreased 32% during the three months ended June 30, 2007
      to
      $1,545,000 compared to the same period a year ago and decreased 9% sequentially.
       The decrease in year-over-year sales is primarily  due to
      reduced demand for optical MEMS drivers and line protection
      devices.  The sequential reduction in sales is primarily due to a
      decrease in demand for our power supply controllers. We believe overall sales
      to
      the Telecom market will experience flat to moderate growth.




We
      have
      identified light emitting diodes (“LED”) lighting as a separate focus
      market.  End market drivers in our LED Lighting markets are the
      emergence of LCD flat screen television sets that are back-lighted by LEDs
      and
      other lighting applications such as traffic signals, street lights, signage,
      decorative lighting and automobile lights.  Sales in LED backlighting
      and lighting were $873,000 for the three months ended June 30, 2007 compared
      to
      $195,000 for the same period last year and $521,000 sequentially.  The
      increases in year-over-year and sequential sales are due primarily to
      introduction of our new line of LED and LED backlight drivers for flat screen
      TVs and general lighting.  We expect increasing sales in this market,
      especially in the second half of fiscal 2008.




Our
      current growth strategy relies on the successful transition of our new products,
      and our ability to continuously and successfully introduce and market new
      products and technologies that meet our customers’ requirements.





Our
      principal markets are in the United States, Europe, and Asia.  Sales
      by geography as well as year-over-year and sequential percentage change, were
      as
      follows, where international sales include sales to U.S. based customers if
      the
      product is delivered outside the United States *(in
      thousands):*





**Three
                Months Ended****Net
                Sales**
            
            **June
                30, 2007**
            
            
            **March
                31, 2007**
            
            
            **July
                1, 2006**
            
            
            **Sequential
                Change**
            
            
            **Year-Over-Year Change**Asia
                (excluding China & Japan)
            
            $
            3,722
            
            
            $
            3,753
            
            
            $
            3,567
            
            
            
            -1
            %
            
            
            4
            %China
            
            
            4,513
            
            
            
            7,382
            
            
            
            8,500
            
            
            
            -39
            %
            
            
            -47
            %Japan
            
            
            2,211
            
            
            
            1,295
            
            
            
            1,950
            
            
            
            71
            %
            
            
            13
            %Europe
            
            
            2,569
            
            
            
            2,770
            
            
            
            2,419
            
            
            
            -7
            %
            
            
            6
            %United
                States
            
            
            7,584
            
            
            
            7,495
            
            
            
            7,527
            
            
            
            1
            %
            
            
            1
            %Other
            
            
            163
            
            
            
            141
            
            
            
            602
            
            
            
            16
            %
            
            
            -73
            %Net
                Sales
            
            $
            20,762
            
            
            $
            22,836
            
            
            $
            24,565
            
            
            
            -9
            %
            
            
            -15
            %International
                Sales
            
            $
            13,178
            
            
            $
            15,341
            
            
            $
            17,038
            
            
            
            -14
            %
            
            
            -23
            %Domestic
                Sales
            
            
            7,584
            
            
            
            7,495
            
            
            
            7,527
            
            
            
            1
            %
            
            
            1
            %Net
                Sales
            
            $
            20,762
            
            
            $
            22,836
            
            
            $
            24,565
            
            
            
            -9
            %
            
            
            -15
            %






18




Net
      sales
      to international customers for the three months ended June 30, 2007 were
      $13,178,000 or 63% of net sales as compared to $17,038,000 or 69% of net sales
      for the same period of the prior fiscal year and $15,341,000 or 67% in the
      three
      months ended March 31, 2007.  Sales to international customers for the
      three months ended June 30, 2007 decreased 23% compared to the same periods
      last
      year, and decreased 14% sequentially.  The decrease in international
      sales year-over-year and sequentially are primarily due to reduced shipments
      of
      EL backlighting drivers to customers whose contract manufacturing vendors are
      located primarily in China.





Net
      sales
      to domestic customers for the three months ended June 30, 2007 increased 1%
      compared to the same period last year and sequentially.





Our
      assets are primarily located in the United States.





***Gross
      Profit***





Gross
      profit represents net sales less cost of sales.  Cost of sales
      includes the cost of purchasing raw silicon wafers cost associated with
      assembly, packaging, test, quality assurance and product yields the cost of
      personnel, facilities and depreciation on equipment associated with
      manufacturing support and charges for excess or obsolete inventory.





Gross
      profit for the quarter ended June 30, 2007 was $12,686,000, compared to
      $14,728,000 for the same period of fiscal 2007, and $13,167,000 for the prior
      quarter.   The year-over-year and sequential reductions in gross
      profit were primarily attributable to reduced sales.





Gross
      margin, which is gross profit as a percent of net sales, was 61% for the three
      months ended June 30, 2007 compared to 60% for the same period of the prior
      fiscal year and 58% for the quarter ended March 31, 2007.  The
      increases in gross margin for the three months ended June 30, 2007 over the
      comparable period in fiscal 2007 and the prior quarter were primarily
      attributable to higher capacity utilization in the back end operations and
      to a
      more profitable product mix.





**Three
                Months Ended***(Dollars
                in thousands)*
            
            **June
                30, 2007**
            
            
            **March
                31, 2007**
            
            
            **July
                1, 2006**Gross
                Margin Percentage
            
            
            61
            %
            
            
            58
            %
            
            
            60
            %*Included
                in Gross Margin Percentage Above*Gross
                Margin Benefit from Sale of Previously Written Down
                Inventory
            
            $
            398
            
            
            $
            344
            
            
            $
            516Percentage
                of Net Sales
            
            
            2
            %
            
            
            2
            %
            
            
            2
            %





***Research
      and Development (R&D) Expenses***





**Three
                Months Ended**
            
            
            **Sequential**
            
            
            **Year-Over-Year***(Dollars
                in thousands)*
            
            **June
                30, 2007**
            
            
            **March
                31, 2007**
            
            
            **July
                1, 2006**
            
            
            **Change**
            
            
            **Change**R&D
                Expenses
            
            $
            3,765
            
            
            $
            3,350
            
            
            $
            3,949
            
            
            
            12
            %
            
            
            -5
            %Percentage
                of Net Sales
            
            
            18
            %
            
            
            15
            %
            
            
            16
            %





Research
      and development (R&D) expenses include payroll and benefits, processing
      costs, and depreciation.   We also expense proto-type wafers and
      mask sets related to new products as R&D expenses until new products are
      released to production.





Expenditures
      for R&D were $3,765,000 for the three months ended June 30,
      2007.  The net decrease of $184,000 compared to $3,949,000 for the
      respective period a year ago resulted from a decrease in payroll and benefits,
      including a decrease of $111,000 in employee stock-based compensation expense.
      Compared to the prior quarter, R&D expenses increased by $415,000 primarily
      due to an increase of $219,000 in payroll and related benefits, including
      expenses for stock-based compensation of $93,000, and due to increased
      supplies.





19




Some
      aspects of our R&D efforts require significant short-term
      expenditures.  As such, timing of such expenditures may cause
      fluctuations in our R&D expenses. We have increased R&D activities in
      order to increase the number of new products we introduce and meet current
      and
      future technological requirements of our customers and markets.  As
      such, R&D expenses in absolute dollars are likely to remain at this or
      higher levels in the remaining quarters of fiscal 2008.  However,
      R&D expenses as a percentage of net sales may fluctuate.





***Selling,
      General and Administrative (SG&A) Expenses***





**Three
                Months Ended**
            
            
            **Sequential**
            
            
            **Year-Over-Year***(Dollars
                in thousands)*
            
            **June
                30, 2007**
            
            
            **March
                31, 2007**
            
            
            **July
                1, 2006**
            
            
            **Change**
            
            
            **Change**SG&A
                Expenses
            
            $
            3,646
            
            
            $
            4,019
            
            
            $
            3,803
            
            
            
            -9
            %
            
            
            -4
            %Percentage
                of Net Sales
            
            
            18
            %
            
            
            18
            %
            
            
            15
            %





SG&A
      expenses consist primarily of employee related expenses, commissions to sales
      representatives, occupancy expenses including expenses associated with the
      our
      regional sales offices, cost of advertising and publications, and outside
      services such as legal, auditing, tax, and compliance services related to
      Sarbanes-Oxley Act of 2002.





SG&A
      expenses for the three months ended June 30, 2007 were $3,646,000 or an decrease
      of $157,000 when compared to $3,803,000 for the comparable period last
      year.  This decrease is primarily due to a reduction in audit and
      professional service expenses for Sarbanes-Oxley compliance of $376,000, a
      gain
      on sale of equipment of $200,000, and a reduction in sales representative
      commissions of $132,000; partially offset by higher payroll
      and  benefits of $334,000, salesmen incentives of $144,000, and
      legal expenses of $52,000. The sequential decrease in SG&A expenses of
      $373,000 resulted primarily from a gain on sale of equipment of $200,000, a
      $194,000 reduction in audit and professional service expenses and a reduction
      in
      bad debt charges of $150,000, partially offset with an increase in salesmen
      bonus of $110,000 and in travel & entertainment of $38,000.





***Interest
      Income and Other Income, Net***





**Three
                Months Ended**
            
            
            **Sequential**
            
            
            **Year-Over-Year***(Dollars
                in thousands)*
            
            **June
                30, 2007**
            
            
            **March
                31, 2007**
            
            
            **July
                1, 2006**
            
            
            **Change**
            
            
            **Change**Interest
                Income and Other Income, Net
            
            $
            1,507
            
            
            $
            1,688
            
            
            $
            1,288
            
            
            
            -11
            %
            
            
            17
            %Percentage
                of Net Sales
            
            
            7
            %
            
            
            7
            %
            
            
            5
            %





Interest
      income, which consists primarily of interest income from our cash, cash
      equivalents and short-term investments, was $1,380,000 and $1,111,000 for the
      three months ended June 30, 2007 and July 1, 2006, respectively. The increases
      in interest income for the three months ended June 30, 2007 are primarily a
      result of larger cash, cash equivalents and short-term investments balances
      and
      to a lesser extent from higher investment yields compared to the same period
      of
      fiscal 2007.





Other
      income, net, for the three months ended June 30, 2007 was $127,000 and consisted
      primarily of a $55,000 increase in fair value of investments held by our
      Supplemental Retirement Plan and income of $72,000 related to foreign currency
      exchange gain and other items. For the comparable period in fiscal 2007, other
      income, net was $177,000 and consisted primarily of proceeds of $185,000
      from sale of an investment previously written off as partially offset by a
      $77,000 decrease in fair market value of investments held by our Supplemental
      Employee Retirement Plan.


20




***Provision
      for Income Taxes***





Provision
      for income taxes represents federal, state and foreign taxes.  The
      provision for income taxes for the three months ended June 30, 2007 was
      $2,309,000 at the effective tax rate of 34%, compared to $3,348,000 and 41%
      for
      the same period in the prior fiscal year. The income tax provision for the
      interim period reflects our estimated annual income tax rate and differs from
      the taxes computed at the federal and state statutory rates primarily due to
      the
      effect of non-deductible stock-based compensation expense, tax exempt interest
      income, and research and development credits.  The effective tax rate
      for the three months ended July 1, 2006 was impacted by an adjustment to provide
      for contingencies related to an IRS audit. Excluding this adjustment, our tax
      rate would have been 37%. Additionally, in the three months ended July 1, 2006,
      the federal research and development credit had not been renewed.  It
      was subsequently renewed during our third fiscal quarter.





We
      maintain liabilities for tax contingencies within our income taxes payable
      account. The determination of the liability amount involves considerable
      judgment and estimation, and is continuously monitored by management based
      on
      the best information available including changes in tax regulations, the outcome
      of relevant court cases and other information. We are currently under IRS
      examination for the fiscal 2002, 2003 and 2004 tax returns.  We believe
      that we have adequately recorded tax liabilities in our financial statements
      for
      additional taxes we may be required to pay as a result of the examinations.
      If
      the resulting tax assessment exceeds the estimate of tax liabilities, an
      additional charge to expense will result.  If payment proves unnecessary,
      the reversal of tax liabilities would result in tax benefits being recognized
      in
      the period we determine such liabilities are no longer necessary.





**Financial
      Condition**





***Overview***





We
      ended
      the first quarter of fiscal 2008 with $141,478,000 in cash, cash equivalents,
      and short-term investments.  This represents an increase of $2,562,000
      when compared with the amount of $138,916,000 on March 31, 2007.  As
      of June 30, 2007, the net working capital was $157,107,000, an increase of
      $5,545,000 from $151,562,000 as of March 31, 2007.  Working capital is
      defined as current assets less current liabilities.  The increase in
      working capital was mostly the result of cash generated from
      operations.





***Liquidity
      and Capital Resources***





In
      summary, our cash flows were as follows:





**Three
                Months Ended***(Dollars
                in thousands)*
            
            **June
                30, 2007**
            
            
            **July
                1, 2006**Net
                cash provided by operating activities
            
            $
            6,285
            
            
            $
            10,423Net
                cash used in investing activities
            
            
            (5,145
            )
            
            
            (18,469
            )Net
                cash provided by (used in) financing activities
            
            
            (2,423
            )
            
            
            1,707Net
                decrease in cash and cash equivalents
            
            $
            (1,283
            )
            
            $
            (6,339
            )





***Operating
      Activities***





Net
      cash
      provided by operating activities is net income adjusted for certain non-cash
      items and changes in assets and liabilities. For the three months ended June
      30,
      2007, net cash provided by operating activities was $6,285,000. This increase
      in
      cash resulted primarily from net income of $4,473,000, an increase in taxes
      payable of $3,185,000, increases in provision for doubtful accounts of $373,000
      and excess and obsolete inventories of $381,000, a decrease in prepaid expenses
      and other assets of $350,000, and other non-cash items such as depreciation
      of
      $651,000 and stock-based compensation expense of $656,000.  This
      increase in cash from operating activities was partially offset by an increase
      in inventories of $2,203,000, which was primarily due to an increase in higher
      valued inventory in our back end test facility and finished goods while lower
      valued inventory in our wafer fabrication plant reduced, an increase in deferred
      income taxes of $924,000, and a decrease in trade accounts payable and accrued
      expenses of $467,000.





21




For
      the
      three months ended July 1, 2006, net cash provided by operating activities
      was
      $10,423,000.  This increase in cash was primarily attributable to net
      income of $4,916,000, an increase in taxes payable of $3,322,000, an increase
      in
      deferred revenue of $1,633,000, an increase in trade accounts payable and
      accrued expenses of $1,122,000, and other non-cash items such as stock-based
      compensation expense of $648,000, depreciation of $609,000, and provision for
      excess and obsolete inventories of $597,000.





***Investing
      Activities***





Investing
      cash flows consist primarily of capital expenditures and purchases of short-term
      investments, partially offset by sales of short-term investments. Cash used
      in
      investing activities for the three months ended June 30, 2007 was $5,145,000,
      due to the timing of purchases and sales of short-term investments and capital
      expenditures of $1,745,000 primarily for manufacturing capacity and quality
      improvements and enterprise software during the first fiscal quarter of
      2008.





Cash
      used
      in investing activities for the three months ended July 1, 2006 was $18,469,000
      due to the timing of purchases and sales of short-term investments and capital
      expenditures of $1,045,000.





***Financing
      Activities***





Financing
      cash flows consist primarily of proceeds from the exercise of stock options
      under the 1991 and 2001 Plans and sale of stock through the ESPP,
      reclassification of non-cash excess tax benefit from operating into financing
      activities as required by SFAS 123R, and of repurchases of stock on the open
      market. Net cash used by financing activities in the three months ended June
      30,
      2007 was $2,423,000 due to the repurchase of 104,700 shares of our common stock
      for $3,245,000. This was partially offset by proceeds from the exercise of
      stock
      options and employee stock purchases under the ESPP of $709,000 and excess
      tax
      benefit related to stock-based compensation plans of $113,000.





Net
      cash
      provided by financing activities in the three months ended July 1, 2006 was
      $1,707,000 due to proceeds from the exercise of stock options and employee
      stock
      purchases under the ESPP of $1,442,000 and excess tax benefit related to
      stock-based compensation plans of $265,000.





We
      expect
      to spend approximately $5,400,000 for capital acquisitions in fiscal
      2008.  We believe that we have substantial production capacity in
      place to handle any projected increase in business in fiscal
      2008.  Most of our property, plant and equipment, net of $9,745,000 is
      located in the United States. We also believe that existing cash, cash
      equivalents and short-term investments, together with cash flow from operations,
      will be sufficient to meet our liquidity and capital requirements through the
      next twelve months.





***Off-Balance
      Sheet Arrangements***





We
      do not
      have nor have we ever had any off-balance sheet arrangements that have, or
      are
      likely to have, a current or future material effect on the financial condition,
      sales, expenses, results of operations, liquidity, capital expenditures, or
      capital resources.





***Contractual
      Obligations***





We
      purchase components from a variety of suppliers and use several contract
      manufacturers to provide manufacturing services for our products. During the
      normal course of business, in order to manage manufacturing lead times and
      help
      assure adequate component supply, we enter into agreements with contract
      manufacturers and suppliers that either allow them to procure inventory based
      upon criteria as defined by us or establish the parameters defining our
      requirements. In certain instances, these agreements allow us the option to
      cancel, reschedule, and adjust our requirements based on our business needs
      prior to firm orders being placed. Consequently, only a portion of our reported
      purchase commitments arising from these agreements are firm, non-cancelable,
      and
      unconditional commitments.





22




The
      following table summarizes our significant contractual cash obligations at
      June
      30, 2007, and the effect such obligations are expected to have on our liquidity
      and cash flow in future periods (*in thousands*):





**Payment
                Due by Year****Contractual
                Obligations**
            
            **Total**
            
            
            **Less
                than 1 Year**
            
            
            **1-2
                Years**
            
            
            **2-3
                Years**
            
            
            **3-4
                Years**
            
            
            **After
                4 Years**Operating
                lease obligations (1)
            
            $
            3,867
            
            
            $
            1,039
            
            
            $
            1,034
            
            
            $
            991
            
            
            $
            803
            
            
            $
            --Purchase
                obligations (2)
            
            
            7,473
            
            
            
            7,412
            
            
            
            17
            
            
            
            44
            
            
            
            --
            
            
            
            --Total
                contractual cash obligations
            
            $
            11,340
            
            
            $
            8,451
            
            
            $
            1,051
            
            
            $
            1,035
            
            
            $
            803
            
            
            $
            --





*(1)
                We lease
                facilities under non-cancelable lease agreements expiring at various
                times
                through April 2011.  Rental expense net of sublease income for
                the three months ended June 30, 2007, amounted to
                $217,000.*


*(2)
                To obtain
                favorable pricing and resource commitment, we commit to volume purchases
                from suppliers of manufacturing materials and
                services.*





Effective
      April 1, 2007, we adopted the provisions of FIN 48 (see Note 5).  As
      of June 30, 2007, the liability for uncertain tax positions, net of offsetting
      tax benefits associated with the correlative effects of potential transfer
      pricing adjustments, state income taxes, interest deductions, and other
      receivables was $4,998,000, of which, $1,073,000 was paid in July 2007, and
      the
      balance of $3,925,000 is not expected to be paid within one year.  We
      are unable to estimate when cash settlement with a taxing authority will
      occur. The balance of $3,925,000, net of approximately $1,139,000 of
      offsetting tax benefits, has not yet reduced income tax payments and
      therefore has been recorded as non-current deferred tax assets and other long
      term receivables.





*Recent
      Accounting Pronouncements*





In
      February 2007, the Financial Accounting Standards Board (FASB) issued SFAS
      No.
      159, *The Fair Value Option for Financial Assets and Financial Liabilities*(SFAS No. 159), which permits entities to elect to measure many financial
      instruments and certain other items at fair value that are not currently
      required to be measured at fair value. This election is irrevocable. SFAS No.
      159 will be effective for us in fiscal 2009. We are currently assessing the
      potential impact that the adoption of SFAS No. 159 will have on our financial
      statements.





In
      September 2006, the FASB issued SFAS No. 157, *Fair Value Measurements*
      (SFAS No. 157), which defines fair value, establishes a framework for measuring
      fair value in generally accepted accounting principles and expands disclosures
      about fair value measurements. SFAS No. 157 does not require any new fair value
      measurements, but provides guidance on how to measure fair value by providing
      a
      fair value hierarchy used to classify the source of the information. This
      statement is effective for us in fiscal 2009. We are currently assessing the
      potential impact that the adoption of SFAS No. 157 will have on our financial
      statements.





In
      June
      2006, the FASB issued FASB Interpretation No. 48, *Accounting for Uncertainty
      in Income Taxes: An Interpretation of FASB statement No. 109*(FIN 48). FIN
      48 clarifies the accounting for uncertainty in income taxes recognized in an
      enterprise’s financial statements in accordance with SFAS No. 109. This
      interpretation defines the minimum recognition threshold a tax position is
      required to meet before being recognized in the financial statements. We adopted
      FIN 48 on April 1, 2007 as a change in accounting principle, and have recorded
      the cumulative effect of adoption of $93,000 as a decrease in the opening
      balance of retained earnings in the first quarter of fiscal 2008, as permitted
      by the transition provisions of FIN 48. See Note 5.





23




***Available
      Information***





We
      file
      electronically with the SEC our annual reports on Form 10-K, quarterly reports
      on Form 10-Q, current reports on Form 8-K, and amendments, if any, to those
      reports pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of
      1934.  The SEC maintains an Internet site at http://sec.gov
      that contains these reports, proxy and information statements and other
      information regarding Supertex, Inc. We make available free of charge and
      through our Internet website at www.supertex.com copies of these reports
      as soon as reasonably practicable after filing or furnishing the information
      to
      the SEC.  Copies of such documents may be requested by contacting our
      Investor Relations department at (408) 222-4295.





**Item
      3.  Quantitativeand Qualitative Disclosures
      About Market Risk**





***Interest
      Rate Risk***





The
      Company is exposed to financial market risks due primarily to changes in
      interest rates. The Company does not use derivatives to alter the interest
      characteristics of its investment securities.  The Company has no
      holdings of derivative or commodity instruments, and holdings are for purposes
      other than trading purposes.  Supertex's portfolio is primarily
      comprised of fixed rate securities. Investments and cash and cash equivalents
      generated interest income of $1,380,000 in the three months ended June 30,
      2007.  A significant change in interest rates would impact the amount
      of interest income generated from the Company's excess cash and
      investments.  It would also adversely impact the fair value
      of the Company's investments, however, the Company believes
      the impact would be minimal since auction periods of these securities are
      short.  As of June 30, 2007, Supertex had no long-term debt
      outstanding.





***Foreign
      Currency Exchange Risks***





The Company does
      not hedge any potential risk from any foreign currency exposure. With its
      operations in Hong Kong, Supertex faces exposure to an adverse change in
      the exchange rate of the Hong Kong dollar. The Company believes
      that its exposure is relatively small, thus it does not employ hedging
      techniques designed to mitigate this foreign currency
      exposure.  Likewise, the Company could experience
      unanticipated currency gains or losses.  As the level of activity at
      this operation changes over time, actual currency gains or losses could have
      an
      adverse impact to the consolidated financial statements.





**Item
      4.  Controlsand Procedures**





**(a)
      Disclosure Controls and Procedures.**





*Disclosure
      Controls and Procedures**.*  The Company’s disclosure
      controls and procedures are designed to ensure that information required to
      be
      disclosed in the Company’s reports filed under the Securities Exchange Act of
      1934 is recorded, processed, summarized, and reported within the time periods
      specified in the SEC’s rules and forms, including, without limitation, that such
      information is accumulated and communicated to Company management, including
      the
      Company’s principal executive and financial officers, as appropriate to allow
      timely decisions regarding required disclosures.





*Limitations
      on the Effectiveness of Disclosure Controls**.*  In
      designing and evaluating the Company’s disclosure controls and procedures,
      management recognized that disclosure controls and procedures, no matter how
      well conceived and operated, can provide only reasonable, not absolute,
      assurance that the objectives of the disclosure controls and procedures are
      met.  Additionally, in designing disclosure controls and procedures,
      Company management necessarily was required to apply its judgment in evaluating
      the cost-benefit relationship of possible disclosure controls and
      procedures.  The design of any disclosure controls and procedures also
      is based in part upon certain assumptions about the likelihood of future events,
      and there can be no assurance that any design will succeed in achieving its
      stated goals under all potential future conditions.





24




*Evaluation
      of Disclosure Controls and Procedures.*  The Company’s Chief
      Executive Officer and Chief Financial Officer have evaluated the effectiveness
      of the design and operation of the Company’s disclosure controls and procedures
      as defined in Exchange Act Rules 13a-14(c) as of June 30, 2007, and have
      determined that they are effective at the reasonable assurance
      level.





**(b)
      Internal Control over Financial Reporting.**





The
      Company's internal control over financial reporting (as defined in Exchange
      Act Rules 13a-15(f) and 15d-15(f)) is designed to provide reasonable assurance
      regarding the reliability of its financial reporting and preparation of
      financial statements for external purposes in accordance with generally accepted
      accounting principles.   There were no changes in the Company’s
      internal control over financial reporting that occurred during the first quarter
      of fiscal 2008 that have materially affected, or are reasonably likely to
      materially affect such control.


25


**PART
      II - OTHER INFORMATION**





**Item
      1.  Legal Proceedings**





From
      time
      to time the Company is subject to possible claims or assessments from third
      parties arising in the normal course of business.  Management has
      reviewed such possible claims and assessments with legal counsel and believes
      that it is unlikely that they will result in a material adverse impact on the
      Company’s financial position,  results of operations or cash
      flows.





**Item
      1A.  Risk Factors**





There
      have been no material changes to the risk factors disclosed in Item 1A of Part
      I
      of our Form 10-K for the fiscal year ended March 31, 2007, filed on June 14,
      2007, which risk factors are hereby incorporated by reference.





**Item
      2.Unregistered
      Sales of Equity Securities and Use of
      Proceeds**





Purchases
      of Equity Securities by the Issuer and Affiliated Purchasers





Issuer
      Purchases of Equity Securities





**Period**
            
            
            **Total
                Number of Shares Purchased (1)**
            
            
            **Average
                Price**
              **Paid
                Per Share**
            
            
            **Total
                Number of Shares Purchased as Part of Publicly Announced Plans or
                Programs(2)**
            
            
            **Maximum
                Number of Shares that May Yet be Purchased Under the Plans or
                Programs**04/01/07-
                04/28/07
            
            
            --
            
            $
            --
            
            
            --
            
            
            729,10004/29/07-
                05/26/07
            
            
            104,700
            
            $
            31.00
            
            
            --
            
            
            624,40005/27/07-
                06/30/07
            
            
            --
            
            $
            --
            
            
            --
            
            
            624,400**Total**
            
            
            **104,700**
            
            **$**
            **31.00**
            
            
            **--**
            
            
            **624,400**





*(1)*
            *The
                Company's current share repurchase program, under which it
                repurchased these 104,700 shares, has been in place since
                1999. Supertex is not certain but does not believe it
                publicly announced this program, although its financial statements
                have reflected purchases from time to time under this program. These
                104,700 shares were purchased in open market
                transactions.*





*(2)*
            *The
                Company adopted a share repurchase program in 1992 authorizing the
                repurchase of 1,000,000 shares. The board of directors
                terminated this program in 1999 after 938,000 shares had been repurchased
                and adopted a share repurchase program authorizing the repurchase
                of
                900,000 shares plus the 62,000 shares authorized for repurchase under
                the
                1992 program whose repurchase had not been affected. As described
                in
                footnote (1), the Company is not certain but does not believe
                that it publicly announced the 1999 repurchase plan. The 1999
                repurchase program has no expiration date, other than, unless extended,
                when an aggregate of 962,000 shares have been repurchased. Neither
                this
                program nor any other repurchase program or plan has expired
                during the first quarter ended June 30, 2007 nor has the Company
                decided to terminate any repurchase plan or program prior
                to expiration. There are no existing repurchase plans or programs
                under which the Company does not intend to make further
                purchases.*








26


**Item
      3.  Defaults Upon Senior
      Securities**





None





**Item
      4.  Submission of Matters to a Vote of Security
      Holders**





None








**Item
      5.  Other Information**





None





**Item
      6.  Exhibits**





Exhibit
              31.1 & 31.2
            -
              Certification of Chief Executive Officer and of Chief Financial Officer
              pursuant to Securities and Exchange Act Rules 13a-14(a) and 15d-14(a),
              as
              adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
              2002.Exhibit
              32.1 & 32.2
            -
              Certification of Chief Executive Officer and of Chief Financial Officer
              pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
              906 of
              the Sarbanes-Oxley Act of 2002.






27


**SIGNATURE**





Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereunto
      duly authorized.








**SUPERTEX,
      INC.**


*(Registrant)*








Date:
      August 8, 2007


By:  /s/
      Phillip A.
      Kagel


Phillip
      A.
      Kagel


VP,
      Finance &
Chief Financial Officer


(Principal
      Accounting
& Financial Officer)


28


**Exhibit
      31.1**


**Certifications
      Under Rule 13a-14(a)/l5d-14(a)**





I,
      Henry C. Pao, certify
      that:





1.      I
      have
      reviewed this quarterly report on Form 10-Q of Supertex, Inc., a California
      corporation;





2.      Based
      on my knowledge, this quarterly report does not contain any untrue statement
      of
      a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were
      made, not misleading with respect to the period covered by this quarterly
      report;





3.      Based
      on my knowledge, the financial statements, and other financial information
      included in this quarterly report, fairly present in all material respects
      the
      financial condition, results of operations and cash flows of the registrant
      as
      of, and for, the periods presented in this quarterly report;





4.      The
      registrant’s other certifying officer and I are responsible for establishing and
      maintaining disclosure controls and procedures (as defined in Exchange Act
      Rules
      13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
      defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
      I
      have:





(a)  
designed
      such
      disclosure controls and procedures, or caused such disclosure controls and
      procedures to be designed under our supervision, to ensure that material
      information relating to the registrant, including its consolidated subsidiaries,
      is made known to me by others within those entities, particularly during the
      period in which this quarterly report is being prepared;





(b)  
designed
      such
      internal control over financial reporting, or caused such internal control
      over
      financial reporting to be designed under our supervision, to provide reasonable
      assurance regarding the reliability of financial reporting and the preparation
      of financial statements for external purposes in accordance with generally
      accepted accounting principles;





(c)   evaluated
      the
      effectiveness of the registrant's disclosure controls and procedures and
      presented in this report our conclusion about the effectiveness of the
      disclosure controls and procedures, as of the end of the period covered by
      this
      report based on such evaluation; and





(d)   disclosed
      in
      this report any change in the registrant’s internal control over financial
      reporting that occurred during the registrant’s most recent fiscal quarter that
      has materially affected, or is reasonably likely to materially affect, the
      registrant’s internal control over financial reporting; and





5.      The
      registrant’s other certifying officer and I have disclosed, based on our most
      recent evaluation of internal control over financial reporting, to the
      registrant's auditors and the audit committee of registrant's board of directors
      (or persons performing the equivalent function):





(a)  all
      significant
      deficiencies and material weaknesses in the design or operation of internal
      control over financial reporting which are reasonably likely to adversely affect
      the registrant's ability to record, process, summarize, and report financial
      data and have identified for the registrant's auditors any material weaknesses
      in internal controls; and





(b)  any
      fraud, whether or
      not material, that involves management or other employees who have a significant
      role in the registrant's internal controlover financial
      reporting.





Date:
        August 8,
        2007                                                                                
/s/
        Henry C.
        Pao
 Henry
        C. Pao,
        Ph.D.
 President
&
Chief
        Executive Officer
 (Principal Executive Officer)










29


**Exhibit
      31.2**


**Certifications
      Under Rule 13a-14(a)/l5d-14(a)**





I,
      Phillip A.Kagel, certify
      that:





1.      I
      have
      reviewed this quarterly report on Form 10-Q of Supertex, Inc., a California
      corporation;





2.      Based
      on my knowledge, this quarterly report does not contain any untrue statement
      of
      a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements
      were
      made, not misleading with respect to the period covered by this quarterly
      report;





3.      Based
      on my knowledge, the financial statements, and other financial information
      included in this quarterly report, fairly present in all material respects
      the
      financial condition, results of operations and cash flows of the registrant
      as
      of, and for, the periods presented in this quarterly report;





4.      The
      registrant’s other certifying officer and I are responsible for establishing and
      maintaining disclosure controls and procedures (as defined in Exchange Act
      Rules
      13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
      defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and
      I
      have:





(a)  
designed
      such
      disclosure controls and procedures, or caused such disclosure controls and
      procedures to be designed under our supervision, to ensure that material
      information relating to the registrant, including its consolidated subsidiaries,
      is made known to me by others within those entities, particularly during the
      period in which this quarterly report is being prepared;





(b)  
designed
      such
      internal control over financial reporting, or caused such internal control
      over
      financial reporting to be designed under our supervision, to provide reasonable
      assurance regarding the reliability of financial reporting and the preparation
      of financial statements for external purposes in accordance with generally
      accepted accounting principles;





(c)   evaluated
      the
      effectiveness of the registrant's disclosure controls and procedures and
      presented in this report our conclusion about the effectiveness of the
      disclosure controls and procedures, as of the end of the period covered by
      this
      report based on such evaluation; and





(d)   disclosed
      in
      this report any change in the registrant’s internal control over financial
      reporting that occurred during the registrant’s most recent fiscal quarter that
      has materially affected, or is reasonably likely to materially affect, the
      registrant’s internal control over financial reporting; and





5.      The
      registrant’s other certifying officer and I have disclosed, based on our most
      recent evaluation of internal control over financial reporting, to the
      registrant's auditors and the audit committee of registrant's board of directors
      (or persons performing the equivalent function):





(a)    all
      significant deficiencies and material weaknesses in the design or operation
      of
      internal control over financial reporting which are reasonably likely to
      adversely affect the registrant's ability to record, process, summarize, and
      report financial data and have identified for the registrant's auditors any
      material weaknesses in internal controls; and





(b)    any
      fraud,
      whether or not material, that involves management or other employees who have
      a
      significant role in the registrant's internal controlover financial
      reporting.





Date:
      August 8,
      2007                                                                                /s/
      Phillip A.
      Kagel


Phillip
      A. Kagel


VP, Finance & Chief Financial Officer


(Principal Accounting and Financial Officer)





30


**Exhibit
      32.1**


**Statement
      of Chief Executive Officer under 18 U.S.C. § 1350**





I,
      Henry
      C. Pao, the chief executive officer of Supertex, Inc., a California corporation
      (the “Company”), certify pursuant to Section 1350 of Chapter 63 of Title 18
      of the United States Code, that to my knowledge:





(i)
            the
                quarterly report of the Company on Form 10-Q for the period ended
                June 30, 2007, as filed with the Securities and Exchange Commission
                (the
                “Report”), fully complies with the requirements of Section 13(a) or 15(d),
                whichever is applicable, of the Securities Exchange Act of 1934,
                and





(ii)
            the
                information contained in the Report fairly presents, in all material
                respects, the financial condition and results of operations of the
                Company
                at the dates and for the periods
                indicated.





Date:
      August 8,
      2007                                                                                
/s/
      Henry C.
      Pao


Henry
      C. Pao,
      Ph.D.


Chief
      Executive
      Officer





*The
      material contained in this Exhibit 32.1 is not deemed “filed” with the SEC and
      is not to be incorporated by reference into any filing of the Company under
      the
      Securities Act of 1933 or the Securities Exchange Act of 1934, whether made
      before or after the date hereof and irrespective of any general incorporation
      language contained in such filing.*







**Exhibit
      32.2**


**Statement
      of Chief Financial Officer under 18 U.S.C. § 1350**







I,
      Phillip A. Kagel, the chief financial officer of Supertex, Inc., a California
      corporation (the “Company”), certify pursuant to Section 1350 of Chapter 63
      of Title 18 of the United States Code, that to my knowledge:





(i)
            the
                quarterly report of the Company on Form 10-Q for the period ended
                June 30, 2007, as filed with the Securities and Exchange Commission
                (the
                “Report”), fully complies with the requirements of Section 13(a) or 15(d),
                whichever is applicable, of the Securities Exchange Act of 1934,
                and





(ii)
            the
                information contained in the Report fairly presents, in all material
                respects, the financial condition and results of operations of the
                Company
                at the dates and for the periods
                indicated.











Date:
      August 8,
      2007                                                                                /s/
      Phillip A.
      Kagel


Phillip
      A.
      Kagel


Chief
      Financial Officer








*The
      material contained in this Exhibit 32.2 is not deemed “filed” with the SEC and
      is not to be incorporated by reference into any filing of the Company under
      the
      Securities Act of 1933 or the Securities Exchange Act of 1934, whether made
      before or after the date hereof and irrespective of any general incorporation
      language contained in such filing.*











31