Included in third quarter 2013 GAAP and non-GAAP adjusted net income was approximately $2.3 million, net of tax, non-cash share-based compensation expense. Excluding share based compensation expense, both GAAP and non-GAAP adjusted diluted EPS would have increased by an additional $0.05 per diluted share, the same amount per diluted share by which share-based compensation affected GAAP and non-GAAP adjusted net income in the second quarter 2013 and the third quarter 2012.
EBITDA, which represents earnings before net interest expense, income tax, depreciation and amortization, for the third quarter 2013 was $36.7 million, compared to $30.2 million for the second quarter 2013 and $24.8 million for the third quarter 2012. For a reconciliation of GAAP net income to EBITDA (non-GAAP), see the table near the end of the release for further details.
As of September 30, 2013, the Company had approximately $204 million in cash and cash equivalents and approximately $22 million in short-term investments. Working capital was approximately $489 million.
Business Outlook
Dr. Lu concluded, “For the fourth quarter of 2013, we expect revenue to range between $205 million and $220 million, or down 2 to 9 percent sequentially. We expect gross margin to be 28.0 percent, plus or minus 2 percent. Operating expenses are expected to be approximately 22.7 percent, plus or minus 1 percent. We expect our income tax rate to range between 18 and 24 percent, and shares used to calculate EPS for the fourth quarter are anticipated to be approximately 48.2 million.”
Conference Call
Diodes will host a conference call on Tuesday, November 12, 2013 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its third quarter financial results. Investors and analysts may join the conference call by dialing 1-866-788-0544 and providing the confirmation code 30041226. International callers may join the teleconference by dialing 1-857-350-1682 and enter the same confirmation code at the prompt. A telephone replay of the call will be made available approximately two hours after the call and will remain available until Tuesday, November 19, 2013 at midnight Central Time. The replay number is 1-888-286-8010 with a pass code of 26611483. International callers should dial 1-617-801-6888 and enter the same pass code at the prompt. Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the Investors section of Diodes' website at http://www.diodes.com. To listen to the live call, please go to the Investors section of Diodes’ website and click on the conference call link at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Diodes' website for approximately 60 days.
About Diodes Incorporated
Diodes Incorporated (Nasdaq: DIOD), a Standard and Poor's SmallCap 600 and Russell 3000 Index company, is a leading global manufacturer and supplier of high-quality application specific standard products within the broad discrete, logic and analog semiconductor markets. Diodes serves the consumer electronics, computing, communications, industrial, and automotive markets. Diodes' products include diodes, rectifiers, transistors, MOSFETs, protection devices, functional specific arrays, single gate logic, amplifiers and comparators, Hall-effect and temperature sensors; power management devices, including LED drivers, AC-DC converters and controllers, DC-DC switching and linear voltage regulators, and voltage references along with special function devices, such as USB power switches, load switches, voltage supervisors, and motor controllers. Diodes’ corporate headquarters, logistics center, and Americas' sales office are located in Plano, Texas. Design, marketing, and engineering centers are located in Plano; San Jose, California; Taipei, Taiwan; Manchester, England; and Neuhaus, Germany. Diodes’ wafer fabrication facilities are located in Kansas City, Missouri and Manchester, with four manufacturing facilities located in Shanghai, China, and two joint venture facilities located in Chengdu, China, as well as manufacturing facilities located in Neuhaus and Taipei. Additional engineering, sales, warehouse, and logistics offices are located in Fort Worth, Texas; Taipei; Hong Kong; Manchester; Shanghai; Shenzhen, China; Seongnam-si, South Korea; Suwon, South Korea; Tokyo, Japan; and Munich, Germany, with support offices throughout the world. For further information, including SEC filings, visit Diodes’ website at http://www.diodes.com.
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 regarding our expectation that: we reduced our operating
expenses on a dollar basis, and as a percentage of revenue,
demonstrating further progress towards achieving our target model of 20
percent of revenue; as we look to the fourth quarter, it is shaping up
to be weaker than our normal seasonality due to a broad based market
weakness, especially the continued weakness in the PC market; however,
we believe we are well positioned in the coming year to benefit from
ongoing operational improvements as we leverage our broadened product
portfolio and additional cost savings from transferring BCD products
into our packaging facilities, and eventually off-loading our analog
foundry wafer loadings into BCD’s wafer fabs; for the fourth quarter of
2013, we expect revenue to range between $205 million and $220 million,
or down 2 to 9 percent sequentially; we expect gross margin to be 28.0
percent, plus or minus 2 percent; operating expenses are expected to be
approximately 22.7 percent, plus or minus 1 percent; and we expect our
income tax rate to range between 18 and 24 percent, and shares used to
calculate EPS for the fourth quarter are anticipated to be approximately
48.2 million. Potential risks and uncertainties include, but are
not limited to, such factors as: the risk that BCD’s business will not
be integrated successfully into Diodes’; the risk that the expected
benefits of the acquisition may not be realized; the risk that BCD’s
standards, procedures and controls will not be brought into conformance
within Diodes’ operations; difficulties coordinating Diodes’ and BCD’s
new product and process development, hiring additional management and
other critical personnel, and increasing the scope, geographic diversity
and complexity of Diodes’ operations; difficulties in consolidating
facilities and transferring processes and know-how; the diversion of our
management’s attention from the management of our business; the risk
that we may not be able to maintain our current growth strategy or
continue to maintain our current performance, costs and loadings in our
manufacturing facilities; risks of domestic and foreign operations,
including excessive operation costs, labor shortages, higher tax rates
and our joint venture prospects; the risk of unfavorable currency
exchange rates; our future guidance may be incorrect; the global
economic weakness may be more severe or last longer than we currently
anticipated; and other information detailed from time to time in Diodes’
filings with the United States Securities and Exchange Commission.
