Included in the second quarter of 2016 GAAP and non-GAAP adjusted net income was approximately $3.0 million, net of tax, of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted EPS would have increased by $0.06 per share for the second quarter 2016, $0.06 for the first quarter 2016 and $0.05 for the second quarter 2015.
EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, for the second quarter 2016, was $36.8 million, compared to $24.9 million for the first quarter 2016 and $40.2 million for the second quarter 2015. For a reconciliation of GAAP net income to EBITDA, see the table near the end of the release for further details.
For the second quarter 2016, net cash provided by operating activities was $16.4 million. Net cash flow was ($44.5) million, which reflects the pay down of $40 million of long-term debt. Free cash flow was $0.9 million, which includes $15.5 million of capital expenditures.
Balance Sheet
As of June 30, 2016, the Company had approximately $237 million in cash, cash equivalents and short-term investments, long-term debt totaled approximately $410 million, and working capital was approximately $542 million.
The results announced today are preliminary, as they are subject to the Company finalizing its closing procedures and customary quarterly review by the Company's independent registered public accounting firm. As such, these results are subject to revision until the Company files its Quarterly Report on Form 10-Q for the quarter ending June 30, 2016.
Business Outlook
Dr. Lu concluded, “For the third quarter of 2016, we expect to grow revenue to a range between $242 million and $258 million, or up 2.3 to 9.0 percent sequentially. We expect GAAP and non-GAAP gross margin to be 32.5 percent, plus or minus 1 percent. Non-GAAP operating expenses are expected to be approximately 24 percent of revenue, plus or minus 1 percent. We expect interest expense to be approximately $3.0 million, and our income tax rate to be 28 percent, plus or minus 3 percent. Shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 50 million. Please note that purchase accounting adjustments for Pericom and previous acquisitions of $4.4 million after tax are not included in these non-GAAP estimates.”
Conference Call
Diodes will host a conference call on Tuesday, August 9, 2016 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its second quarter 2016 financial results. Investors and analysts may join the conference call by dialing 1-855-232-8957 and providing the confirmation code 47838959. International callers may join the teleconference by dialing 1-315-625-6979 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 August 16, 2016 at midnight Central Time. The replay number is 1-855-859-2056 with a pass code of 47838959. International callers should dial 1-404-537-3406 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, analog and mixed-signal semiconductor markets. Diodes serves the consumer electronics, computing, communications, industrial, and automotive markets. Diodes’ products include diodes, rectifiers, transistors, MOSFETs, protection devices, function-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 and Americas’ sales office are located in Plano, Texas and Milpitas, California. Design, marketing, and engineering centers are located in Plano; Milpitas; Taipei, Taiwan; Taoyuan City, Taiwan; Zhubei City, Taiwan; Manchester, England; and Neuhaus, Germany. Diodes’ wafer fabrication facilities are located in Kansas City, Missouri and Manchester, with an additional facility located in Shanghai, China. Diodes has assembly and test facilities located in Shanghai, Jinan, Chengdu, and Yangzhou, China, as well as in Hong Kong, Neuhaus and Taipei. Additional engineering, sales, warehouse, and logistics offices are located in Taipei; Hong Kong; Manchester; Shanghai; Shenzhen, China; Seongnam-si, South Korea; and Munich, Germany, with support offices throughout the world.
