| UNITED      STATESSECURITIES      AND EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Washington,      D.C.  20549                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| 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 28, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 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 [   ]  Smaller      Reporting Company[   ]                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| 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 August 1,    2008 |
| Common      Stock, no par value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 12,839,536 |
| Exhibit      index is on Page 31                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Total      number of pages: 35                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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| Table of      Contents |                                                                                                  | Page      No. |
|------------------------|-------------------------------------------------------------------------------------------------------|---------------|
|                   | PART      I – FINANCIAL INFORMATION                                                             |          |
| Item      1.           | Financial      Statements (Unaudited)                                                                 |          |
|                   | Condensed      Consolidated Statements of Income                                                      | 3             |
|                   | Condensed      Consolidated Balance Sheets                                                            | 4             |
|                   | Condensed      Consolidated Statements of Cash Flows                                                  | 5             |
|                   | Notes      to Condensed Consolidated Financial Statements                                             | 6             |
| Item      2.           | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations | 18            |
| Item      3.           | Quantitative      and Qualitative Disclosures About Market Risk                                       | 28            |
| Item      4.           | Controls      and Procedures                                                                          | 29            |
|                   |                                                                                                  |          |
|                   | PART      II – OTHER INFORMATION                                                                |          |
| Item      1.           | Legal      Proceedings                                                                                | 31            |
| Item      1A.          | Risk      Factors                                                                                     | 31            |
| Item      2.           | Unregistered      Sales of Equity Securities and Use of Proceeds                                      | 31            |
| Item      3.           | Defaults      Upon Senior Securities                                                                  | 31            |
| Item      4.           | Submission      of Matters to a Vote of Security Holders                                              | 31            |
| Item      5.           | Other      Information                                                                                | 31            |
| Item      6.           | Exhibits                                                                                              | 31            |
|                   |                                                                                                  |          |
| Signature              |                                                                                                  | 32            |

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|                                                                                                             |   | Three      Months Ended |   |
|------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                             |   | June      28, 2008      |   |   | June      30, 2007 |   |
| Net      sales                                                                                                   |   | $                       | 22,751 |   |   | $ | 20,762 |   |
| Cost      of sales(1)                                                                                            |   |                    | 10,000 |   |   |   | 8,076 |   |
| Gross      profit                                                                                                |   |                    | 12,751 |   |   |   | 12,686 |   |
| Research      and development(1)                                                                                 |   |                    | 4,037  |   |   |   | 3,765 |   |
| Selling,      general and administrative(1)                                                                      |   |                    | 3,796  |   |   |   | 3,646 |   |
| Total      operating expenses                                                                                    |   |                    | 7,833  |   |   |   | 7,411 |   |
| Income      from operations                                                                                      |   |                    | 4,918  |   |   |   | 5,275 |   |
| Interest      income                                                                                             |   |                    | 1,041  |   |   |   | 1,380 |   |
| Other      income (expense), net                                                                                 |   |                    | (66    | ) |   |   | 127 |   |
| Income      before provision for income taxes                                                                    |   |                    | 5,893  |   |   |   | 6,782 |   |
| Provision      for income taxes                                                                                  |   |                    | 1,453  |   |   |   | 2,309 |   |
| Net      income                                                                                                  |   | $                       | 4,440  |   |   | $ | 4,473 |   |
| Net      income per share:                                                                                       |   |                    |   |   |   |   |   |   |
| Basic                                                                                                            |   | $                       | 0.35   |   |   | $ | 0.32 |   |
| Diluted                                                                                                          |   | $                       | 0.34   |   |   | $ | 0.32 |   |
|                                                                                                             |   |                    |   |   |   |   |   |   |
| Shares      used in per share computation:                                                                       |   |                    |   |   |   |   |   |   |
| Basic                                                                                                            |   |                    | 12,779 |   |   |   | 13,769 |   |
| Diluted                                                                                                          |   |                    | 12,881 |   |   |   | 13,998 |   |
|                                                                                                             |   |                    |   |   |   |   |   |   |
| (1)      Includes employee stock-based compensation as      follows.  See Note 6 for more information: |   |                    |   |   |   |   |   |   |
| Cost      of sales                                                                                               |   | $                       | 104    |   |   | $ | 142 |   |
| Research      and development                                                                                    |   | $                       | 295    |   |   | $ | 276 |   |
| Selling,      general and administrative                                                                         |   | $                       | 269    |   |   | $ | 238 |   |

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|                                                                                                                        |   | June      28, 2008 |    |   | March      29, 2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|---------------------|--------|
| ASSETS                                                                                                                      |   |               |    |   |                |   |
| Current      Assets:                                                                                                        |   |               |    |   |                |   |
| Cash      and cash equivalents                                                                                              |   | $                  | 26,225  |   |                | $      | 17,902 |   |
| Short-term      investments                                                                                                 |   |               | 18,179  |   |                |   | 6,827 |   |
| Trade      accounts receivable, net                                                                                         |   |               | 13,700  |   |                |   | 13,197 |   |
| Inventories,      net                                                                                                       |   |               | 16,425  |   |                |   | 17,036 |   |
| Prepaid      expenses and other current assets                                                                              |   |               | 1,974   |   |                |   | 3,647 |   |
| Deferred      income taxes                                                                                                  |   |               | 9,401   |   |                |   | 9,401 |   |
| Total      current assets                                                                                                   |   |               | 85,904  |   |                |   | 68,010 |   |
| Long-term      investments, net                                                                                             |   |               | 85,782  |   |                |   | 96,531 |   |
| Property,      plant and equipment, net                                                                                     |   |               | 9,710   |   |                |   | 9,916 |   |
| Other      assets                                                                                                           |   |               | 376     |   |                |   | 373 |   |
| Deferred      income taxes                                                                                                  |   |               | 2,450   |   |                |   | 2,521 |   |
| TOTAL      ASSETS                                                                                                           |   | $                  | 184,222 |   |                | $      | 177,351 |   |
|                                                                                                                        |   |               |    |   |                |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                             |   |               |    |   |                |   |   |   |
| Current Liabilities:                                                                                                        |   |               |    |   |                |   |   |   |
| Trade      accounts payable                                                                                                 |   | $                  | 3,414   |   |                | $      | 3,280 |   |
| Accrued      salaries and employee benefits                                                                                 |   |               | 11,799  |   |                |   | 12,146 |   |
| Other      accrued liabilities                                                                                              |   |               | 1,570   |   |                |   | 1,741 |   |
| Deferred      revenue                                                                                                       |   |               | 4,592   |   |                |   | 4,349 |   |
| Total      current liabilities                                                                                              |   |               | 21,375  |   |                |   | 21,516 |   |
| Income      taxes payable, noncurrent                                                                                       |   |               | 4,192   |   |                |   | 3,960 |   |
| TOTAL      LIABILITIES                                                                                                      |   |               | 25,567  |   |                |   | 25,476 |   |
|                                                                                                                        |   |               |    |   |                |   |   |   |
| Commitments      and contingencies (Note 9)                                                                                 |   |               |    |   |                |   |   |   |
|                                                                                                                        |   |               |    |   |                |   |   |   |
| 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 12,835 shares and 12,749    shares |   |               | 56,857  |   |                |   | 54,968 |   |
| Accumulated      other comprehensive loss                                                                                   |   |               | (3,618  | )      |                |   | (4,069 | ) |
| Retained      earnings                                                                                                      |   |               | 105,416 |   |                |   | 100,976 |   |
| TOTAL      SHAREHOLDERS’ EQUITY                                                                                       |   |               | 158,655 |   |                |   | 151,875 |   |
|     TOTAL      LIABILITIES AND SHAREHOLDERS’ EQUITY                                               |   | $                  | 184,222 |   |                | $      | 177,351 |   |

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|                                                                                           |   | Three      Months Ended |   |
|------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES                                                      |   | June      28, 2008      |   |   | June      30, 2007 |   |
|   Net      income                                                                    |   | $                       | 4,440  |   |   | $ | 4,473 |   |
|   Non-cash      adjustments to net income:                                           |   |                    |   |   |   |   |   |   |
| Depreciation      and amortization                                                             |   |                    | 776    |   |   |   | 651 |   |
| Provision      for doubtful accounts and sales returns                                         |   |                    | 270    |   |   |   | 373 |   |
| Provision      for excess and obsolete inventories                                             |   |                    | 530    |   |   |   | 381 |   |
| Stock-based      compensation expense                                                          |   |                    | 668    |   |   |   | 656 |   |
| Tax      benefit related to stock-based compensation plans                                     |   |                    | 162    |   |   |   | 213 |   |
| Excess      tax benefit related to stock-based compensation plans                              |   |                    | (49    | ) |   |   | (113 | ) |
| Unrealized      (gain) loss on short-term investments, categorized as    trading               |   |                    | 72     |   |   |   | (55 | ) |
| Gain      on disposal of property, plant and equipment                                         |   |                    | -      |   |   |   | (200 | ) |
| Deferred      income taxes                                                                     |   |                    | 71     |   |   |   | (924 | ) |
| Changes      in operating assets and liabilities:                                              |   |                    |   |   |   |   |   |   |
| Trade      accounts receivable                                                                 |   |                    | (773   | ) |   |   | (151 | ) |
| Inventories                                                                                    |   |                    | 81     |   |   |   | (2,203 | ) |
| Prepaid      expenses and other assets                                                         |   |                    | 1,670  |   |   |   | 350 |   |
| Trade      accounts payable and accrued expenses                                               |   |                    | (384   | ) |   |   | (467 | ) |
| Deferred      revenue                                                                          |   |                    | 243    |   |   |   | 306 |   |
| Income      taxes payable                                                                      |   |                    | 232    |   |   |   | 3,185 |   |
| Net      cash provided by operating activities                                                 |   |                    | 8,009  |   |   |   | 6,475 |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                                      |   |                    |   |   |   |   |   |   |
|   Purchases      of property, plant and equipment                                    |   |                    | (570   | ) |   |   | (1,745 | ) |
|   Proceeds      from disposal of property and equipment                              |   |                    | -      |   |   |   | 200 |   |
|   Purchases      of short-term investments                                           |   |                    | (224   | ) |   |   | (49,690 | ) |
|   Sales      of short-term investments                                               |   |                    | -      |   |   |   | 45,900 |   |
| Net      cash used in investing activities                                                     |   |                    | (794   | ) |   |   | (5,335 | ) |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                                      |   |                    |   |   |   |   |   |   |
|   Proceeds      from exercise of stock options and employee stock purchase      plan |   |                    | 1,059  |   |   |   | 709 |   |
|   Repurchase      of common stock                                                    |   |                    | -      |   |   |   | (3,245 | ) |
|   Excess      tax benefit related to stock-based compensation plans                  |   |                    | 49     |   |   |   | 113 |   |
| Net      cash provided by (used in) financing activities                                       |   |                    | 1,108  |   |   |   | (2,423 | ) |
| NET      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                      |   |                    | 8,323  |   |   |   | (1,283 | ) |
| CASH      AND CASH EQUIVALENTS:                                                                |   |                    |   |   |   |   |   |   |
| Beginning      of period                                                                       |   |                    | 17,902 |   |   |   | 22,652 |   |
| End      of period                                                                             |   | $                       | 26,225 |   |   | $ | 21,369 |   |
| Supplemental      cash flow disclosures:                                                       |   |                    |   |   |   |   |   |   |
| Income      taxes paid, net of refunds                                                         |   | $                       | 683    |   |   | $ | 51 |   |

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|                               |   | Fair      value measurements |   |   |         |   |
|------------------------------------|--------|------------------------------|--------|--------|--------------|--------|
| Assets                             |   | Level      1                 |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Money      market funds            |   | $                            | -      |   |         | $      | 20,502 |   |   | $ | - |   |   | $ | 20,502 |   |
| Equity      mutual funds           |   |                         | 6,979  |   |         |   | - |   |   |   | - |   |   |   | 6,979 |   |
| Short-term      investments in ARS |   |                         | -      |   |         |   | - |   |   |   | 11,200 |   |   |   | 11,200 |   |
| Long-term      investments in ARS  |   |                         | -      |   |         |   | - |   |   |   | 85,782 |   |   |   | 85,782 |   |
| Total      assets at fair value    |   | $                            | 6,979  |   |         | $      | 20,502 |   |   | $ | 96,982 |   |   | $ | 124,463 |   |

| Fair      value measurements of assets using level 3 inputs              |   | Short-term      and long-term investments in ARS |   |
|--------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
| Beginning      balance at march 29, 2008                                 |   | $                                                | 96,531 |   |
| Unrealized      gains recorded in "Accumulated other comprehensive loss" |   |                                             | 451    |   |
| Ending      balance at June 28, 2008                                     |   | $                                                | 96,982 |   |

|                              |   | June      28, 2008 |   |   | March      29, 2008 |   |
|-----------------------------------|--------|--------------------|--------|--------|---------------------|--------|
|                              |   | Amortized          |   |   | Net      Unrealized |   |   | Carrying |   |   | Amortized |   |   | Net      Unrealized |   |   | Carrying |   |
|                              |   | Cost               |   |   | Loss                |   |   | Value |   |   | Cost |   |   | Loss |   |   | Value |   |
| Short-term      investments:      |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trading      securities           |   | $                  | 6,979  |   |                | $      | - |   |   | $ | 6,979 |   |   | $ | 6,827 |   |   | $ | - |   |   | $ | 6,827 |   |
| Available-for-sale      ARS       |   |               | 11,200 |   |                |   | - |   |   |   | 11,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      short-term investments |   | $                  | 18,179 |   |                | $      | - |   |   | $ | 18,179 |   |   | $ | 6,827 |   |   | $ | - |   |   | $ | 6,827 |   |
|                              |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      investments:       |   |               |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available-for      sale ARS       |   | $                  | 89,400 |   |                | $      | (3,618 | ) |   | $ | 85,782 |   |   | $ | 100,600 |   |   | $ | (4,069 | ) |   | $ | 96,531 |   |

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|                                                  |   | June      28, 2008 |   |   | March      29, 2008 |   |
|-------------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
| Short-term      investments:                          |   |               |   |   |                |   |
| Available-for-sale      securities:                   |   |               |   |   |                |   |
| Due      after ten years                              |   | $                  | 11,200 |   |                | $      | - |   |
|                                                  |   |               |   |   |                |   |   |   |
| Long-term      investments:                           |   |               |   |   |                |   |   |   |
| Available-for-sale      securities at amortized cost: |   |               |   |   |                |   |   |   |
| Due      after ten years                              |   |               | 89,400 |   |                |   | 100,600 |   |
| Net      unrealized loss                              |   |               | (3,618 | )      |                |   | (4,069 | ) |
| Total      long-term investments                      |   | $                  | 85,782 |   |                | $      | 96,531 |   |

| · | the      decline in market value is due to unusual general market      conditions;                                                                                                     |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                   |
| · | recently,      some ARS were redeemed at par value;                                                                                                                                    |
|   |                                                                                                                                                                                   |
| · | these      investments are of high credit quality and a significant portion of      the investments are collateralized and are guaranteed by the US Department      of Education; |
|   |                                                                                                                                                                                   |
| · | there      have been no defaults on the ARS held by the Company as of June 28,      2008;                                                                                         |
|   |                                                                                                                                                                                   |
| · | their      AAA or Aaa credit ratings have not been reduced at June 28, 2008;      and                                                                                                  |
|   |                                                                                                                                                                                   |
| · | the      Company has the intent and ability to hold these investments until      the anticipated recovery in market valueoccurs.                                                  |

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|                                                   |   | June      28, 2008 |   |   | March      29, 2008 |   |
|--------------------------------------------------------|--------|--------------------|--------|--------|---------------------|--------|
| Raw      materials                                     |   | $                  | 866    |   |                | $      | 1,075 |   |
| Work-in-process                                        |   |               | 11,236 |   |                |   | 11,463 |   |
| Finished      goods                                    |   |               | 1,991  |   |                |   | 2,462 |   |
| Finished      goods at distributors and on consignment |   |               | 2,332  |   |                |   | 2,036 |   |
| Net      Inventories                                   |   | $                  | 16,425 |   |                | $      | 17,036 |   |

|                                                    |   | Three      Months Ended |   |
|---------------------------------------------------------|--------|-------------------------|--------|
|                                                    |   | June      28, 2008      |   |   | June      30, 2007 |   |
| Net      income                                         |   | $                       | 4,440  |   |   | $ | 4,473 |   |
| Unrealized      gains on available-for-sale investments |   |                    | 451    |   |   |   | - |   |
| Comprehensive      income                               |   | $                       | 4,891  |   |   | $ | 4,473 |   |

----

|                                    |   |               |     |   | Options      Outstanding |   |
|-----------------------------------------|--------|--------------------|----------|--------|--------------------------|--------|
|                                    |   | Available      For |     |   | Number      of           |   |   | Weighted      Average |   |
|                                    | Grant  |               |     | Shares |                     |   | Exercise      Price |   |
| Balance,      March 29, 2008            |   |               | 642,579  |   |                     |   | 1,100,365 |   |   | $ | 28.09 |   |
|      Granted   |   |               | (138,300 | )      |                     |   | 138,300 |   |   |   | 25.30 |   |
|      Exercised |   |               | --       |   |                     |   | (82,500 | ) |   |   | 11.82 |   |
|      Canceled  |   |               | 3,500    |   |                     |   | (3,500 | ) |   |   | 34.92 |   |
| Balance,      June 28, 2008             |   |               | 507,779  |   |                     |   | 1,152,665 |   |   | $ | 28.90 |   |

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|                          |   |   |                    |   |   |                                                     |   |   | 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 |   |
| $                             | 11.30  |   |                    |   | -      |                                                     |   | $      | 20.00                                |   |   |                     | 305,555   |   |   |   | 2.69 |   |   | $ | 16.83 |   |   |   | 185,155 |   |   | $ | 16.54 |   |
|                          | 20.01  |   |                    |   | -      |                                                     |   |   | 30.00                                |   |   |                     | 238,700   |   |   |   | 8.29 |   |   |   | 24.45 |   |   |   | 19,900 |   |   |   | 25.09 |   |
|                          | 30.01  |   |                    |   | -      |                                                     |   |   | 40.00                                |   |   |                     | 419,160   |   |   |   | 7.09 |   |   |   | 34.33 |   |   |   | 65,845 |   |   |   | 33.79 |   |
|                          | 40.01  |   |                    |   | -      |                                                     |   |   | 46.92                                |   |   |                     | 189,250   |   |   |   | 5.31 |   |   |   | 41.96 |   |   |   | 49,930 |   |   |   | 41.65 |   |
| $                             | 11.30  |   |                    |   | -      |                                                     |   | $      | 46.92                                |   |   |                     | 1,152,665 |   |   |   | 5.88 |   |   | $ | 28.90 |   |   |   | 320,830 |   |   | $ | 24.52 |   |

----

|                                                    |   | Three      Months Ended |   |
|---------------------------------------------------------|--------|-------------------------|--------|
|                                                    |   | June      28, 2008      |   |   | June      30, 2007 |   |
| BASIC:                                                  |   |                    |   |   |   |   |
| Net      income                                         |   | $                       | 4,440  |   |   | $ | 4,473 |   |
| Weighted      average shares outstanding for the period |   |                    | 12,779 |   |   |   | 13,769 |   |
| Net      income per share                               |   | $                       | 0.35   |   |   | $ | 0.32 |   |
|                                                    |   |                    |   |   |   |   |   |   |
| DILUTED:                                                |   |                    |   |   |   |   |   |   |
| Net      income                                         |   | $                       | 4,440  |   |   | $ | 4,473 |   |
| Weighted      average shares outstanding for the period |   |                    | 12,779 |   |   |   | 13,769 |   |
| Dilutive      effect of stock options and ESPP          |   |                    | 102    |   |   |   | 229 |   |
| Total                                                   |   |                    | 12,881 |   |   |   | 13,998 |   |
| Net      income per share                               |   | $                       | 0.34   |   |   | $ | 0.32 |   |

----

----

| Description                           |   | Balance      at Beginning of Period |   |   | Charge(1) |   |   | Deductions      and Other(2) |   |   | Balance      at End of Period |   |
|---------------------------------------|--------|-------------------------------------|--------|--------|-----------|--------|--------|------------------------------|--------|--------|-------------------------------|--------|
| Three      months ended June 28, 2008 |   |                                |   |   |      |   |   |                         |   |   |                          |   |
| Allowance      for sales returns      |   | $                                   | 483    |   |      | $      | 264    |                         |   | $      | (381                          | )      |   | $ | 366 |   |
|                                  |   |                                |   |   |      |   |   |                         |   |   |                          |   |   |   |   |   |
| Three      months ended June 30, 2007 |   |                                |   |   |      |   |   |                         |   |   |                          |   |   |   |   |   |
| Allowance      for sales returns      |   | $                                   | 199    |   |      | $      | 375    |                         |   | $      | (409                          | )      |   | $ | 165 |   |

| Payment      Due in:  |   | Operating      Lease |   |
|-----------------------|--------|----------------------|--------|
| Less      than 1 year |   | $                    | 1,146  |   |
| 2      years          |   |                 | 1,111  |   |
| 3      years          |   |                 | 876    |   |
| 4      years          |   |                 | 13     |   |
|                  |   | $                    | 3,146  |   |

|                              |   | Three      Months Ended |   |
|-----------------------------------|--------|-------------------------|--------|
|                              |   | June      28, 2008      |   |   | June      30, 2007 |   |
| Number      of shares repurchased |   |                    | -      |   |   |   | 104,700 |   |
| Cost      of shares repurchased   |   |  $                 | -      |   |   | $ | 3,245,000 |   |
| Average      price per share      |   |  $                 | -      |   |   | $ | 31.00 |   |

----

|                                           |   | Three      Months Ended |   |
|------------------------------------------------|--------|-------------------------|--------|
| Net      Sales                                 |   | June      28, 2008      |   |   | June      30, 2007 |   |
| China                                          |   | $                       | 4,360  |   |   | $ | 4,513 |   |
| Asia      (excluding China, Korea & Japan) |   |                    | 3,498  |   |   |   | 2,650 |   |
| Europe                                         |   |                    | 3,195  |   |   |   | 2,569 |   |
| Korea                                          |   |                    | 2,301  |   |   |   | 1,072 |   |
| Japan                                          |   |                    | 1,523  |   |   |   | 2,211 |   |
| Other                                          |   |                    | 174    |   |   |   | 163 |   |
| United      States                             |   |                    | 7,700  |   |   |   | 7,584 |   |
| Net      Sales                                 |   | $                       | 22,751 |   |   | $ | 20,762 |   |

| Country            |   | June      28, 2008 |   |   | June      30, 2007 |   |
|--------------------|--------|--------------------|--------|--------|--------------------|--------|
| United      States |   | $                  | 8,186  |   |               | $      | 7,516 |   |
| Hong      Kong     |   |               | 1,524  |   |               |   | 1,135 |   |
|               |   | $                  | 9,710  |   |               | $      | 8,651 |   |

----

----

----

|                       |   | Three      Months Ended |   |
|----------------------------|--------|-------------------------|--------|
| Net      Sales             |   | June      28, 2008      |   |   | March      29, 2008 |   |   | June      30, 2007 |   |   | Sequential      Change |   |   | Year-Over-Year      Change |   |
| Medical      Electronics   |   | $                       | 9,528  |   |   | $ | 6,591 |   |   | $ | 8,210 |   |   |   | 45 | % |   |   | 16 | % |
| Imaging                    |   |                    | 6,307  |   |   |   | 6,060 |   |   |   | 6,209 |   |   |   | 4 | % |   |   | 2 | % |
| Industrial/Other           |   |                    | 2,898  |   |   |   | 3,359 |   |   |   | 3,925 |   |   |   | -14 | % |   |   | -26 | % |
| Telecom                    |   |                    | 2,665  |   |   |   | 2,612 |   |   |   | 1,545 |   |   |   | 2 | % |   |   | 72 | % |
| LED      Driver IC         |   |                    | 1,353  |   |   |   | 999 |   |   |   | 873 |   |   |   | 35 | % |   |   | 55 | % |
|   Net      Sales |   | $                       | 22,751 |   |   | $ | 19,621 |   |   | $ | 20,762 |   |   |   | 16 | % |   |   | 10 | % |

|                       |   | Three      Months Ended |   |
|----------------------------|--------|-------------------------|--------|
| Net      Sales             |   | June      28, 2008      |   |   | March      29, 2008 |   |   | June      30, 2007 |   |
| Medical      Electronics   |   |                    | 42     | % |   |   | 34 | % |   |   | 40 | % |
| Imaging                    |   |                    | 28     | % |   |   | 31 | % |   |   | 30 | % |
| Industrial/Other           |   |                    | 13     | % |   |   | 17 | % |   |   | 19 | % |
| Telecom                    |   |                    | 11     | % |   |   | 13 | % |   |   | 7 | % |
| LED      Driver IC         |   |                    | 6      | % |   |   | 5 | % |   |   | 4 | % |
|   Net      Sales |   |                    | 100    | % |   |   | 100 | % |   |   | 100 | % |

----

|                                           |   | Three      Months Ended |   |
|------------------------------------------------|--------|-------------------------|--------|
| Net      Sales                                 |   | June      28, 2008      |   |   | March      29, 2008 |   |   | June      30, 2007 |   |   | Sequential      Change |   |   | Year-Over-Year      Change |   |
| China                                          |   | $                       | 4,360  |   |   | $ | 3,611 |   |   | $ | 4,513 |   |   |   | 21 | % |   |   | -3 | % |
| Asia      (excluding China, Korea & Japan) |   |                    | 3,498  |   |   |   | 2,103 |   |   |   | 2,650 |   |   |   | 66 | % |   |   | 32 | % |
| Europe                                         |   |                    | 3,195  |   |   |   | 3,124 |   |   |   | 2,569 |   |   |   | 2 | % |   |   | 24 | % |
| Korea                                          |   |                    | 2,301  |   |   |   | 1,178 |   |   |   | 1,072 |   |   |   | 95 | % |   |   | 115 | % |
| Japan                                          |   |                    | 1,523  |   |   |   | 1,332 |   |   |   | 2,211 |   |   |   | 14 | % |   |   | -31 | % |
| Other                                          |   |                    | 174    |   |   |   | 181 |   |   |   | 163 |   |   |   | -4 | % |   |   | 7 | % |
| United      States                             |   |                    | 7,700  |   |   |   | 8,092 |   |   |   | 7,584 |   |   |   | -5 | % |   |   | 2 | % |
| Net      Sales                                 |   | $                       | 22,751 |   |   | $ | 19,621 |   |   | $ | 20,762 |   |   |   | 16 | % |   |   | 10 | % |
|                                           |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| International      Sales                       |   | $                       | 15,051 |   |   | $ | 11,529 |   |   | $ | 13,178 |   |   |   | 31 | % |   |   | 14 | % |
| Domestic      Sales                            |   |                    | 7,700  |   |   |   | 8,092 |   |   |   | 7,584 |   |   |   | -5 | % |   |   | 2 | % |
| Net      Sales                                 |   | $                       | 22,751 |   |   | $ | 19,621 |   |   | $ | 20,762 |   |   |   | 16 | % |   |   | 10 | % |

----

|                                                                        |   | Three      Months Ended |   |
|-----------------------------------------------------------------------------|--------|-------------------------|--------|
| (Dollars      in thousands)                                                 |   | June      28, 2008      |   |   | March      29, 2008 |   |   | June      30, 2007 |   |
| Gross      Margin Percentage                                                |   |                    | 56     | % |   |   | 51 | % |   |   | 61 | % |
| Included      in Gross Margin Percentage Above                              |   |                    |   |   |   |   |   |   |   |   |   |   |
| Gross      Margin Benefit from Sale of Previously Written Down    Inventory |   | $                       | 326    |   |   | $ | 444 |   |   | $ | 398 |   |
| Percentage      of Net Sales                                                |   |                    | 1      | % |   |   | 2 | % |   |   | 2 | % |

|                                     |   | Three      Months Ended |   |
|------------------------------------------|--------|-------------------------|--------|
| (Dollars      in thousands)              |   | June      28, 2008      |   |   | March      29, 2008 |   |   | June      30, 2007 |   |   | Sequential      Change |   |   | Year-Over-Year      Change |   |
| R&D      Expenses                    |   | $                       | 4,037  |   |   | $ | 3,972 |   |   | $ | 3,765 |   |   |   | 2 | % |   |   | 7 | % |
|   Percentage      of Net Sales |   |                    | 18     | % |   |   | 20 | % |   |   | 18 | % |   |   |   |   |   |   |   |   |

----

|                                     |   | Three      Months Ended |   |
|------------------------------------------|--------|-------------------------|--------|
| (Dollars      in thousands)              |   | June      28, 2008      |   |   | March      29, 2008 |   |   | June      30, 2007 |   |   | Sequential      Change |   |   | Year-Over-Year      Change |   |
| SG&A      Expenses                   |   | $                       | 3,796  |   |   | $ | 3,810 |   |   | $ | 3,646 |   |   |   | 0 | % |   |   | 4 | % |
|   Percentage      of Net Sales |   |                    | 17     | % |   |   | 19 | % |   |   | 18 | % |   |   |   |   |   |   |   |   |

|                                       |   | Three      Months Ended |   |
|--------------------------------------------|--------|-------------------------|--------|
| (Dollars      in thousands)                |   | June      28, 2008      |   |   | March      29, 2008 |   |   | June      30, 2007 |   |   | Sequential      Change |   |   | Year-Over-Year      Change |   |
| Interest      Income and Other Income, Net |   | $                       | 975    |   |   | $ | 1,562 |   |   | $ | 1,507 |   |   |   | -38 | % |   |   | -35 | % |
|   Percentage      of Net Sales   |   |                    | 4      | % |   |   | 8 | % |   |   | 7 | % |   |   |   |   |   |   |   |   |

----

|                                                      |   | Three      Months Ended |   |
|-----------------------------------------------------------|--------|-------------------------|--------|
| (Dollars      in thousands)                               |   | June      28, 2008      |   |   | June      30, 2007 |   |
| Net      cash provided by operating activities            |   | $                       | 8,009  |   |   | $ | 6,475 |   |
| Net      cash used in investing activities                |   |                    | (794   | ) |   |   | (5,335 | ) |
| Net      cash provided by (used in) financing activities  |   |                    | 1,108  |   |   |   | (2,423 | ) |
| Net      increase (decrease) in cash and cash equivalents |   | $                       | 8,323  |   |   | $ | (1,283 | ) |

----

----

| · | the      decline in market value is due to unusual general market      conditions;                                                                                                     |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                   |
| · | recently,      some ARS were redeemed at par value;                                                                                                                                    |
|   |                                                                                                                                                                                   |
| · | these      investments are of high credit quality and a significant portion of      the investments are collateralized and are guaranteed by the US Department      of Education; |
|   |                                                                                                                                                                                   |
| · | there      have been no defaults on the ARS we held as of June 28,    2008;                                                                                                            |
|   |                                                                                                                                                                                   |
| · | their      AAA or Aaa credit ratings have not been reduced at June 28, 2008;      and                                                                                                  |
|   |                                                                                                                                                                                   |
| · | we      have the intent and ability to hold these investments until the      anticipated recovery in market valueoccurs.                                                               |

----

|                                    |   | Payment      Due by Year |   |
|-----------------------------------------|--------|--------------------------|--------|
| Contractual      Obligations            |   | Total                    |   |   | Less      than 1 Year |   |   | 1-2      Years |   |   | 2-3      Years |   |   | 3-4      Years |   |
| Operating      lease obligations (1)    |   | $                        | 3,146  |   |   | $ | 1,146 |   |   | $ | 1,111 |   |   | $ | 876 |   |   | $ | 13 |   |
| Purchase      obligations (2)           |   |                     | 7,829  |   |   |   | 7,701 |   |   |   | 46 |   |   |   | 82 |   |   |   | - |   |
| Total      contractual cash obligations |   | $                        | 10,975 |   |   | $ | 8,847 |   |   | $ | 1,157 |   |   | $ | 958 |   |   | $ | 13 |   |

|   | (1)      We lease facilities under non-cancelable lease agreements expiring at      various times through September 2011.  Rental expense net      of sublease income for the three months ended June 28, 2008 amounted to      $250,000. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

----

----

----

|        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. |
|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Dated:  August      6, 2008 |   | /s/    | PHILLIP A.      KAGEL                                      |
|---------------------------------------|--------|--------|------------------------------------------------------------|
|                                  |   |   | Phillip      A. Kagel                                      |
|                                  |   |   | Vice      President of Finance and Chief Financial Officer |
|                                  |   |   | (Principal      Financial and AccountingOfficer)           |

----

| Dated:  August      6, 2008 |   | /s/    | HENRY C.      PAO                            |
|---------------------------------------|--------|--------|----------------------------------------------|
|                                  |   |   | Henry      C. Pao, Ph.D.                     |
|                                  |   |   | President      & Chief Executive Officer |
|                                  |   |   | (Principal      Executive Officer)           |

----

| Dated:  August      6, 2008 |   | /s/    | PHILLIP A.      KAGEL                                      |
|---------------------------------------|--------|--------|------------------------------------------------------------|
|                                  |   |   | Phillip      A. Kagel                                      |
|                                  |   |   | Vice      President of Finance and Chief Financial Officer |
|                                  |   |   | (Principal      Financial and AccountingOfficer)           |

----

|   | (i) | the      quarterly report of the Company on Form 10-Q for the period ended      June 28, 2008, 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 periodsindicated. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Dated:  August      6, 2008 |   | /s/    | HENRY C.      PAO            |
|---------------------------------------|--------|--------|------------------------------|
|                                  |   |   | Henry      C. Pao, Ph.D.     |
|                                  |   |   | Chief      Executive Officer |

|   | (i) | the      quarterly report of the Company on Form 10-Q for the period ended      June 28, 2008, 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 periodsindicated. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Dated:  August      6, 2008 |   | /s/    | PHILLIP A.      KAGEL        |
|---------------------------------------|--------|--------|------------------------------|
|                                  |   |   | Phillip      A. Kagel        |
|                                  |   |   | Chief      Financial Officer |

----