Revenue Performance - Revenue for Q1 2025 was $332.1 million, a 10% increase from $302.0 million in Q1 2024[4] - Net sales for Q1 2025 increased to $332.1 million, up 10% from $302.0 million in Q1 2024[27] - The company expects Q2 2025 revenue to increase to approximately $355 million, representing an 11% year-over-year growth[17] Profitability Metrics - GAAP net loss was $4.4 million, or a loss of $0.10 per diluted share, compared to a net income of $14.0 million, or $0.30 per diluted share in Q1 2024[9] - Non-GAAP adjusted net income was $8.8 million, or $0.19 per diluted share, down from $13.0 million, or $0.28 per diluted share in Q1 2024[10] - GAAP gross profit margin was 31.5%, compared to 33.0% in Q1 2024[4] - EBITDA for Q1 2025 was $26.2 million, or 7.9% of revenue, compared to $48.3 million, or 16.0% of revenue in Q1 2024[13] - Free cash flow (FCF) for Q1 2025 was $40.8 million, indicating strong cash generation after capital expenditures[42] - EBITDA for Q1 2025 was $26.2 million, down from $48.3 million in Q1 2024, highlighting a decrease in operational profitability[45] Operating Expenses - Research and development expenses increased to $38.6 million in Q1 2025, up from $34.0 million in Q1 2024, reflecting ongoing investment in new technologies[27] - Total operating expenses for Q1 2025 were $103.4 million, compared to $86.6 million in Q1 2024, indicating a rise in operational costs[27] - Non-GAAP operating expenses for Q2 2025 are expected to be approximately 28.0% of revenue, plus or minus 1%[18] Cash Flow and Liquidity - Cash flow from operations for Q1 2025 was $56.7 million, with free cash flow of $40.8 million[14] - As of March 31, 2025, the company had approximately $349 million in cash and cash equivalents[15] - Cash and cash equivalents increased from $308,671 million to $335,754 million, reflecting a growth of about 8.5%[47] Balance Sheet Highlights - Total assets decreased from $2,386,281 million on December 31, 2024, to $2,356,341 million on March 31, 2025, a decline of approximately 1.25%[47] - Current assets remained relatively stable, totaling $1,224,890 million as of March 31, 2025, compared to $1,224,153 million at the end of 2024[47] - Accounts receivable decreased from $325,517 million to $302,241 million, a reduction of approximately 7.1%[47] - Total liabilities decreased from $517,334 million to $484,507 million, a decline of about 6.34%[47] - Total stockholders' equity increased from $1,868,947 million to $1,871,834 million, showing a slight growth of approximately 0.15%[47] - Retained earnings slightly decreased from $1,719,298 million to $1,714,861 million, a decline of about 0.26%[47] Shareholder Information - The number of common shares issued and outstanding increased from 46,332,891 to 46,395,345[47] - Treasury stock remained unchanged at a cost of $338,100 million[47] Other Comprehensive Income - The company recorded an impairment of equity investment of $5.8 million in Q1 2025, which negatively impacted net income[27] - The company reported a decrease in accumulated other comprehensive loss from $146,724 million to $141,902 million, indicating an improvement[47]

Core Points - Diodes Incorporated held its First Quarter 2025 Financial Results Conference Call on May 8, 2025, with key participants including the President, CFO, and Senior VP of Worldwide Sales and Marketing [1][3]. - The financial results announced are preliminary and subject to finalization and review by the independent registered public accounting firm, indicating that they are unaudited and may be revised before the filing of Form 10-Q for the quarter ended March 31, 2025 [4]. Company Overview - The conference call featured Leanne Sievers from Shelton Group, who introduced the company’s leadership team, including Gary Yu (President), Brett Whitmire (CFO), and Emily Yang (SVP, Worldwide Sales and Marketing) [2][3].

Group 1: Earnings Performance - Diodes reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $0.28 per share a year ago, representing an earnings surprise of 5.56% [1] - The company posted revenues of $332.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.47%, compared to year-ago revenues of $301.97 million [2] - Over the last four quarters, Diodes has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Diodes shares have declined approximately 36.4% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $354.9 million, and for the current fiscal year, it is $1.82 on revenues of $1.43 billion [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which Diodes belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Diodes is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $332.1 million, a 10% increase year-over-year compared to $302 million in Q1 2024, but a decrease of 2.1% sequentially from $339.3 million in Q4 2024 [12][18] - GAAP net loss for Q1 2025 was $4.4 million, or a loss per share of $0.10, compared to net income of $14 million or $0.30 per diluted share in Q1 2024 [14] - Non-GAAP adjusted net income for Q1 2025 was $8.8 million, or $0.19 per diluted share, down from $13 million or $0.28 per diluted share in Q1 2024 [14] - EBITDA for Q1 2025 was $26.2 million, or 7.9% of revenue, compared to $48.3 million or 16% of revenue in the prior year period [15] Business Line Data and Key Metrics Changes - Automotive and industrial markets accounted for 42% of Q1 2025 product revenue, maintaining the same level as the previous quarter [7][19] - The computing segment represented 27% of product revenue, with ongoing design momentum in AI server and data center applications [18][25] - Consumer market revenue was 17%, while communication market revenue was 14% [19][27] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 13%, and North America 9% in Q1 2025, with improvements noted across all regions [18] - Channel inventory levels decreased, indicating a better alignment with actual demand [7][18] Company Strategy and Development Direction - The company announced a $100 million stock repurchase program, reflecting confidence in future growth prospects [10] - The hybrid manufacturing model allows the company to adapt to global customer needs and mitigate tariff impacts [10][28] - The focus remains on content expansion and gaining market share in the automotive sector as it recovers [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in 2025 and beyond, despite current economic uncertainties due to tariffs [29] - The company expects revenue for Q2 2025 to increase to approximately $355 million, representing 11% growth year-over-year [17] Other Important Information - Total inventory days at the end of Q1 2025 were approximately 187, down from 193 in the previous quarter [16] - Cash flow provided by operations was $56.7 million for Q1 2025, with free cash flow of $40.8 million [15] Q&A Session Summary Question: Demand pull forward due to inventory levels and tariffs - Management noted that while tariffs create uncertainty, they do not see significant demand pull forward, but rather an improvement in channel inventory and backlog [35][36] Question: Impact of tariffs on manufacturing strategy - The hybrid manufacturing model will continue to be a focus, with no changes to the strategy despite tariff issues [39][40] Question: AI CapEx trends and regional demand - Demand is strong in data center applications, particularly among hyperscalers, with positive trends in edge computing as well [44][46] Question: Gross margin catalysts and potential headwinds - Management expects margin improvement in the second half of the year, driven by increased revenue and improved product mix [48][52] Question: Normalization of distributor inventories - Current inventory levels are slightly above the target range of 11 to 14 weeks, but management is comfortable with the levels supporting expected growth [58]

Investor Relations Diodes Incorporated (DIOD Plano, TX, USA May 8, 2025 Safe Harbor Statement Page 1 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such statements include statements containing forward-looking words such as "expect," "anticipate," " ...

Financial Performance - Net sales for the three months ended March 31, 2025, were $332.1 million, a 10.0% increase from $302.0 million in the same period of 2024[81]. - Gross profit for the same period was $104.7 million, up 5.1% from $99.6 million in the first quarter of 2024, with a gross profit margin of 31.5%[81][87]. - The company reported a net loss of $4.4 million for the first quarter of 2025, compared to a net income of $14.0 million in the first quarter of 2024[81]. - Operating expenses increased by $16.8 million, or 19.3%, compared to the same period last year, with total operating expenses at $103.4 million[88]. - The company experienced a net loss of $2.8 million in Q1 2025, which was offset by various operating items[100]. Cash Flow and Liquidity - Cash flow provided by operations was $56.7 million, with capital expenditures of $15.9 million, resulting in a net cash flow of $26.2 million[81]. - Net cash flows from operating activities for Q1 2025 were $56.7 million, a significant increase from a net cash outflow of $31.1 million in Q1 2024[100][101]. - The company expects cash generated from operations and existing liquidity to cover cash needs for working capital, capital expenditures, and acquisitions for at least the next 12 months[92]. - As of March 31, 2025, cash, cash equivalents, and short-term investments totaled $343.9 million, with an unused borrowing capacity of $225.0 million[81][83]. - Net cash used in investing activities was $(28.5) million in Q1 2025, primarily due to $15.9 million in property, plant, and equipment purchases, representing 4.8% of net sales[102]. - Net cash used in financing activities was $(1.3) million in Q1 2025, compared to $3.2 million provided in Q1 2024[104]. Investments and Acquisitions - The company acquired minority interest in a joint venture in Taiwan for approximately $4.1 million, increasing ownership to 100%[102]. - Capital expenditures for the twelve months ending December 31, 2025, are expected to be within the target model of 5% to 9% of net sales[102]. - Depreciation and amortization of intangible assets for Q1 2025 was $35.9 million, slightly higher than $34.8 million in Q1 2024[100][101]. Market and Operational Risks - The automotive and industrial markets accounted for 42% of first quarter net sales, indicating expanding design opportunities[84]. - The company is exposed to foreign currency risks and uses foreign currency forward agreements to manage this exposure[107]. - The distribution of earnings from foreign subsidiaries may be subject to foreign income taxes, potentially reducing net income[142]. - Variations in quarterly operating results may lead to stock price volatility[143]. - The ongoing conflict between Ukraine and Russia could negatively impact business operations[144]. - Production disruptions due to natural disasters or extraordinary events may affect product availability and sales[145]. - Disruptions in information technology systems could adversely affect cash flows and financial condition[146]. - Cybersecurity issues, including data breaches and cyber-attacks, could reduce expected net sales and damage reputation[147]. - No material changes to market risks have been reported since the last Annual Report filed with the SEC[148]. Other Financial Information - Interest income rose by 26.0% to $5.8 million, reflecting income from derivative hedging instruments[89]. - The company recognized an impairment loss of $5.8 million on an equity investment due to a decline in value[89]. - The company recorded a non-cash impairment charge of $5.8 million in Q1 2025, which positively impacted operating cash flow[100].

Financial Performance - The company aims to achieve $1.0 billion in gross profit based on $2.5 billion in revenue, targeting a gross margin of 40%[23] - Total net sales for 2024 were $1.311 billion, a decline from $2.001 billion in 2022, reflecting a decrease in demand for semiconductors[35] - Net sales from products shipped to China decreased to $589.5 million in 2024 from $941.3 million in 2022, attributed to inventory adjustments and lower demand[35] Market Segmentation - In 2024, the company reported that 25% of its revenue came from the computing market, up from 23% in 2023[30] - The automotive market accounted for 19% of revenue in both 2024 and 2023, indicating stable demand in this segment[30] - The company focuses on high-margin market segments, including automotive and industrial applications, to drive growth[19] Customer Base and Relationships - The company serves over 50,000 customers globally, with a diverse customer base that mitigates susceptibility to market fluctuations[20] - The company serves over 50,000 customers globally, with direct sales and EMS customers accounting for 37% of net sales in 2024, up from 30% in 2022[32] - The company focuses on expanding relationships with existing customers while pursuing new customers in the global consumer electronics sector[32] - The company maintains a commitment to customer-focused product development, fostering deep relationships that enhance demand for its products[21] Product Development and Innovation - The company completed the acquisition of Fortemedia, Inc. in October 2024 to enhance its product portfolio in advanced voice processing technologies[29] - The company plans to continue expanding its product portfolio by developing enhanced performance devices targeting adjacent markets[25] - The company reported a significant increase in design wins during 2024 and 2023, particularly in AI applications and high-growth markets[24] Manufacturing and Operations - Manufacturing operations are designed for flexibility, allowing rapid adjustments to capacity and product mix in response to market demand[18] - The company operates assembly and test facilities in China, Taiwan, and Germany, and wafer fabrication facilities in multiple countries including the U.S.[38] Financial Management and Capital Expenditures - Cash capital expenditures for 2024 were approximately $73.0 million, down from $150.8 million in 2023[38] - The company's outstanding principal long-term debt was $20.7 million and outstanding short-term debt was $31.4 million as of December 31, 2024[274] - A 1.0% increase or decrease in interest rates would affect annual interest rate expense by approximately $0.5 million[274] Currency and Hedging - If the Chinese Yuan, Taiwanese dollar, Euro, and British Pound Sterling were to weaken or strengthen by 1.0% against the U.S. dollar, the company would experience a currency transaction gain or loss of approximately $3.7 million[270] - The company has entered into hedging arrangements to mitigate foreign currency fluctuations[272] Employee and Human Capital Management - As of December 31, 2024, the company employed 8,593 employees, with 7,259 in Asia, 453 in the Americas, and 881 in Europe[58] - The company emphasizes the importance of human capital management, including employee retention and training, to support long-term growth[52][54] Competitive Landscape - The competitive landscape includes major players like Infineon Technologies and Texas Instruments, necessitating product repositioning and price adjustments[49] Regulatory and Environmental Considerations - The company has not experienced material capital expenditures for environmental controls in the past three years[59] - The company has a defined benefit plan in the U.K. that was underfunded, reflecting a liability of approximately $7.3 million as of December 31, 2024[273] - The weighted-average discount rate assumption for the defined benefit plan was 4.7% as of December 31, 2024[273] Order Backlog and Market Trends - The backlog of orders is subject to cancellation or modification, and the company expects a trend towards shorter lead times to continue[41][42] - The company’s net sales are historically affected by the cyclical nature of the semiconductor industry, with the fourth quarter typically showing the smallest revenue[66] Marketing Strategy - The marketing strategy includes participation in industry tradeshows and online marketing to enhance product visibility and customer engagement[36]

Financial Performance - Fourth quarter 2024 revenue was $339.3 million, a 5% increase year-over-year from $322.7 million in Q4 2023[4] - GAAP gross profit for Q4 2024 was $110.9 million, with a gross profit margin of 32.7%, down from 34.9% in Q4 2023[4] - GAAP net income for Q4 2024 was $8.2 million, or $0.18 per diluted share, compared to $25.3 million, or $0.55 per diluted share in Q4 2023[8] - Non-GAAP adjusted net income for Q4 2024 was $12.5 million, or $0.27 per diluted share, down from $23.4 million, or $0.51 per diluted share in Q4 2023[9] - EBITDA for Q4 2024 was $40.7 million, representing 12.0% of revenue, compared to 18.1% in Q4 2023[11] - Net income attributable to common stockholders for the three months ended December 31, 2024, was $8.241 million, a significant decline from $25.292 million in the same period of 2023, representing a decrease of approximately 67.4%[24] - Diluted earnings per share for the twelve months ended December 31, 2024, was $0.95, compared to $4.91 in 2023, indicating a decrease of about 80.7%[24] - Non-GAAP adjusted net income for the three months ended December 31, 2024, was $12.465 million, compared to $23.424 million in the same period of 2023, a decrease of approximately 46.8%[26] - EBITDA for Q4 2024 was $40.746 million, compared to $58.353 million in Q4 2023, reflecting a decrease of approximately 30.3%[50] - Net income for Q4 2024 was $8.241 million, down from $25.292 million in Q4 2023, representing a decline of about 67.5%[50] Cash Flow and Assets - Cash flow from operations for Q4 2024 was $81.8 million, with free cash flow of $62.1 million after $19.7 million in capital expenditures[12] - Free cash flow (FCF) for Q4 2024 was $62.1 million, indicating the cash generated after capital expenditures[47] - As of December 31, 2024, the company had approximately $322 million in cash and cash equivalents and total debt of approximately $52 million[13] - Total current assets increased to $1,224.153 million in Q4 2024 from $1,187.385 million in Q4 2023, a growth of approximately 3.1%[52] - Cash and cash equivalents decreased to $308.671 million in Q4 2024 from $315.457 million in Q4 2023, a decline of about 2.5%[52] - Inventories rose to $474.948 million in Q4 2024, up from $389.774 million in Q4 2023, an increase of approximately 21.8%[52] - Total liabilities decreased to $517.334 million in Q4 2024 from $557.982 million in Q4 2023, a reduction of about 7.3%[52] - Stockholders' equity increased to $1,795.301 million in Q4 2024 from $1,740.741 million in Q4 2023, reflecting a growth of approximately 3.1%[52] Expenses and Charges - Research and development expenses for the three months ended December 31, 2024, were $33.207 million, slightly up from $32.957 million in the same period of 2023, showing an increase of approximately 0.8%[24] - Total operating expenses for the twelve months ended December 31, 2024, were $385.412 million, down from $407.611 million in 2023, reflecting a decrease of about 5.4%[24] - The company recorded a restructuring charge of $8.591 million for the twelve months ended December 31, 2024, compared to $1.583 million in 2023, indicating a significant increase in restructuring costs[24] Future Outlook - The company expects Q1 2025 revenue to be approximately $323 million, representing a 4.8% sequential decrease but a 7% year-over-year growth[15] - GAAP gross margin for Q1 2025 is expected to be 32.5%, with non-GAAP operating expenses projected at approximately 30.0% of revenue[15] - The company maintains a strong position in Asia and aims to expand growth in automotive and industrial markets, as well as capitalize on AI-related opportunities[5] Other Financial Metrics - Interest income for the twelve months ended December 31, 2024, was $18.303 million, up from $13.338 million in 2023, representing an increase of approximately 37.4%[24] - The company reported a foreign currency loss of $6.308 million for the twelve months ended December 31, 2024, compared to a loss of $5.264 million in 2023, indicating a worsening in foreign currency impacts[24] - Goodwill increased to $181.555 million in Q4 2024 from $146.558 million in Q4 2023, a rise of approximately 23.8%[52]

Fourth Quarter 2024 Financial Results Diodes Incorporated (DIOD) Plano, TX, USA February 11, 2025 Safe Harbor Statement Page 1 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such statements include statements containing forward-looking words such as ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $339.3 million, a decrease from $350.1 million in Q3 2024 and an increase from $322.7 million in Q4 2023, marking a 5% year-over-year growth [13][9] - Full year 2024 revenue was $1.3 billion, down from $1.7 billion in 2023 [13] - Gross profit for Q4 2024 was $110.9 million, representing 32.7% of revenue, compared to 33.7% in Q3 2024 and 34.9% in Q4 2023 [13] - GAAP net income for Q4 2024 was $8.2 million or $0.18 per diluted share, down from $13.7 million or $0.30 per diluted share in Q3 2024 and $25.3 million or $0.55 per diluted share in Q4 2023 [16] - Full year GAAP net income was $44 million or $0.95 per diluted share, compared to $227.2 million or $4.91 per diluted share in 2023 [16] Business Line Data and Key Metrics Changes - Automotive and industrial revenue combined accounted for 42% of total product revenue, consistent with the previous quarter [28] - The company introduced 755 new part numbers in 2024, with 330 specifically for the automotive market, increasing addressable content per car from approximately $160 to $213 [29] Market Data and Key Metrics Changes - In Q4 2024, Asia represented 80% of revenue, Europe 12%, and North America 8% [28] - The industrial market accounted for 23% of product revenue, automotive 19%, compute 25%, consumer 18%, and communication 15% [28] Company Strategy and Development Direction - The company aims to expand growth in target markets, particularly automotive and industrial, while capitalizing on new opportunities in AI-related applications [10] - Focus remains on product development and content expansion to improve portfolio quality and mix [11] Management's Comments on Operating Environment and Future Outlook - Management noted that while global demand remains challenging, particularly in Europe and North America, they expect 2025 to be a stronger year than 2024 [10] - The company is prioritizing investments in automotive and industrial markets to enhance growth and margin expansion as market recovery broadens [12] Other Important Information - Cash flow provided by operations was $81.8 million for Q4 2024 and $119.4 million for the full year [20] - The company acquired Fort Media to enhance its product portfolio in advanced voice processing technologies, primarily targeting automotive and compute markets [21] Q&A Session Summary Question: Can you discuss the seasonality and demand trends in China? - Management indicated that the Chinese New Year impact was within expectations, with some customers experiencing extended shutdowns, but overall demand trends were stable [48] Question: What is driving the sequential improvement in gross margin? - Management attributed the improvement to product mix enhancement and efforts to minimize underloading costs by qualifying more products in internal facilities [52][53] Question: How do you expect revenue to perform in each end market in Q1? - Management expects challenges in automotive and industrial markets due to ongoing inventory rebalancing, with a slight decline anticipated in the compute market [60] Question: What are the pricing trends observed? - Pricing remains stable, with a slight increase in competition from commodity areas, but overall pricing environment has not changed significantly [75] Question: What is driving growth in the AI server market? - Growth is attributed to an expanded product portfolio and increased demand for additional PCI Express ports in AI server applications [79]