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,” “sets the stage,” “continuing,” “working diligently to,” “position the Company for,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of revenue growth, market share gains, increase in gross margin and increase in gross profits in 2018 and beyond; that for the first quarter of 2018, we expect revenue to range between $261 million and $277 million, or down 2.8 to up 3.2 percent sequentially; that we expect GAAP gross margin to be 36.0 percent, plus or minus 1 percent; that non-GAAP operating expenses, which are GAAP operating expenses adjusted for retention costs and amortization of acquisition-related intangible assets, are expected to be approximately 23.2 percent of revenue, plus or minus 1 percent; that we expect interest expense to be approximately $3.0 million; that our income tax rate is expected to be 31.0 percent, plus or minus 3 percent; and that shares used to calculate diluted EPS for the first quarter are anticipated to be approximately 51.0 million. Potential risks and uncertainties include, but are not limited to, such factors as: the risk that such expectations may not be met; the risk that the expected benefits of acquisitions may not be realized or that integration of acquired businesses, such as Pericom, may not continue as rapidly as we anticipate; 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; the risk that we may not be able to increase our automotive or other revenue and market share; risks of domestic and foreign operations, including excessive operation costs, labor shortages, higher tax rates and our joint venture prospects; the risk that we may not continue our share repurchase program; the risks of cyclical downturns in the semiconductor industry and of changes in end-market demand or product mix that may affect gross margin or render inventory obsolete; the risk of unfavorable currency exchange rates; the risk that our future outlook or guidance may be incorrect; the risks of global economic weakness or instability in global financial markets; the risks of trade restrictions, tariffs or embargoes; the risk of breaches of our information technology systems; and other information including the “Risk Factors” detailed from time to time in Diodes’ filings with the United States Securities and Exchange Commission.
Recent news releases, annual reports and SEC filings are available at the Company’s website: http://www.diodes.com. Written requests may be sent directly to the Company, or they may be e-mailed to: diodes-fin@diodes.com.
DIODES INCORPORATED AND SUBSIDIARIES | |||||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||||
(unaudited) |
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(in thousands, except per share data) |
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Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
NET SALES | $ | 268,430 | $ | 232,085 | $ | 1,054,204 | $ | 942,162 | |||||||||
COST OF GOODS SOLD | 172,051 | 164,822 | 697,428 | 655,239 | |||||||||||||
Gross profit | 96,379 | 67,263 | 356,776 | 286,923 | |||||||||||||
OPERATING EXPENSES | |||||||||||||||||
Selling, general and administrative | 44,727 | 39,091 | 167,639 | 158,256 | |||||||||||||
Research and development | 19,662 | 17,690 | 77,877 | 69,937 | |||||||||||||
Amortization of acquisition-related intangible assets | 4,700 | 5,099 | 18,798 | 20,478 | |||||||||||||
Impairment of fixed assets | 218 | 2,211 | |||||||||||||||
Restructuring | 4,029 | 10,137 | |||||||||||||||
Other operating expenses | (415 | ) | 12 | (246 | ) | 196 | |||||||||||
Total operating expenses | 72,921 | 61,892 | 276,416 | 248,867 | |||||||||||||
Income from operations | 23,458 | 5,371 | 80,360 | 38,056 | |||||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||||
Interest income | 483 | 282 | 1,475 | 1,357 | |||||||||||||
Interest expense | (2,955 | ) | (3,377 | ) | (13,448 | ) | (13,257 | ) | |||||||||
Impairment on non-operating investment | - | (3,218 | ) | (3,218 | ) | ||||||||||||
Foreign currency loss, net | (1,261 | ) | 4,216 | (7,995 | ) | 2,171 | |||||||||||
Others | 1,071 | (625 | ) | 2,199 | (74 | ) | |||||||||||
Total other expenses | (2,662 | ) | (2,722 | ) | (17,769 | ) | (13,021 | ) | |||||||||
Income before income taxes and noncontrolling interest | 20,796 | 2,649 | 62,591 | 25,035 | |||||||||||||
INCOME TAX PROVISION | 50,674 | 617 | 62,325 | 6,558 | |||||||||||||
NET (LOSS) INCOME | (29,878 | ) | 2,032 | 266 | 18,477 | ||||||||||||
Less: NET (LOSS) INCOME attributable to noncontrolling interest | (773 | ) | (764 | ) | (2,071 | ) | (2,542 | ) | |||||||||
NET (LOSS) INCOME attributable to common stockholders | $ | (30,651 | ) | $ | 1,268 | $ | (1,805 | ) | $ | 15,935 | |||||||
(LOSS) EARNINGS PER SHARE attributable to common stockholders | |||||||||||||||||
Basic | $ | (0.62 | ) | $ | 0.03 | $ | (0.04 | ) | $ | 0.33 | |||||||
Diluted | $ | (0.62 | ) | $ | 0.03 | $ | (0.04 | ) | $ | 0.32 | |||||||
Number of shares used in computation | |||||||||||||||||
Basic | 49,391 | 48,897 | 48,824 | 48,597 | |||||||||||||
Diluted | 49,391 | 50,038 | 48,824 | 49,789 | |||||||||||||
Note: Throughout this release, we refer to “net income attributable to
common stockholders” as “net income.”