Diodes Incorporated Reports Second Quarter Fiscal 2024 Financial Results

Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”

(See the reconciliation tables of GAAP net income to non-GAAP adjusted net income near the end of this release for further details.)

Included in second quarter 2024 GAAP net income and non-GAAP adjusted net income was approximately $3.4 million and $2.8 million, respectively, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, GAAP earnings per share (“EPS”) would have increased by $0.07 per share and non-GAAP adjusted EPS would have increased by $0.06 per share for the second quarter 2024, compared to $0.09 for the first quarter 2024 and $0.13 for second quarter 2023.

EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, in second quarter 2024 was $41.1 million, or 12.8 percent of revenue, compared to $48.3 million, or 16.0 percent of revenue, in first quarter 2024 and $133.5 million, or 28.6 percent of revenue, in second quarter 2023. For a reconciliation of GAAP net income to EBITDA, see the table near the end of this release for further details.

For the second quarter 2024, net cash provided by operating activities was $14.4 million. Net cash flow was a negative $2.9 million, including the pay-down of $22.2 million of total debt. Free cash flow (a non-GAAP measure) was a negative $3.5 million, which includes $17.9 million of capital expenditures.

Balance Sheet

As of June 30, 2024, the Company had approximately $277 million in cash and cash equivalents, restricted cash, and short-term investments. Total debt (including long-term and short-term) amounted to approximately $47 million and working capital was approximately $860 million.

The results announced today are preliminary and unaudited, as they are subject to the Company finalizing its closing procedures and completion of the quarterly review by its independent registered public accounting firm. As such, these results are subject to revision until the Company files its Form 10-Q for the quarter ending June 30, 2024.

Business Outlook

Gary Yu further commented, “For the third quarter of 2024, we expect revenue to be approximately $346 million, plus or minus 3 percent, representing an 8.2% sequential increase at the mid-point, which is the highest sequential growth in the last 14 quarters. GAAP gross margin is expected to be 34.0 percent, plus or minus 1 percent. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 27.5 percent of revenue, plus or minus 1 percent. We expect net interest income to be approximately $2.5 million. Our income tax rate is expected to be 18.5 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 46.6 million.”

Amortization of acquisition-related intangible assets of $3.1 million, after tax, for previous acquisitions is not included in these non-GAAP estimates.

Conference Call

Diodes will host a conference call on Thursday, August 8, 2024 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its second quarter financial results. Investors and analysts may join the conference call by dialing 1-833-634-2590, and international callers may join the teleconference by dialing +1-412-317-6038. A telephone replay of the call will be made available approximately two hours after the call and will remain available until August 15, 2024 at midnight Central Time. The replay number is 1-877-344-7529 with a pass code of 1321163. International callers should dial +1-412-317-0088 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 Investor Relations section of the Company’s website. 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 90 days.

About Diodes Incorporated

Diodes Incorporated (Nasdaq: DIOD), a Standard and Poor’s SmallCap 600 and Russell 3000 Index company, delivers high-quality semiconductor products to the world’s leading companies in the automotive, industrial, computing, consumer electronics, and communications markets. We leverage our expanded product portfolio of analog and discrete power solutions combined with leading-edge packaging technology to meet customers’ needs. Our broad range of application-specific products and solutions-focused sales, coupled with global operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-volume, high-growth markets. For more information, visit 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 containing forward-looking words such as “expect,” “anticipate,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of that for the third quarter of 2024, we expect revenue to be approximately $346 million plus or minus 3 percent; we expect GAAP gross margin to be 34.0 percent, plus or minus 1 percent; non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 27.5 percent of revenue, plus or minus 1 percent; we expect non-GAAP net interest income to be approximately $2.5 million; we expect our income tax rate to be 18.5 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 46.6 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 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, industrial, or other revenue and market share; risks of domestic and foreign operations, including excessive operating costs, labor shortages, higher tax rates, and our joint venture prospects; 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.

The Diodes logo is a registered trademark of Diodes Incorporated in the United States and other countries.

© 2024 Diodes Incorporated. All Rights Reserved.

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 
Three Months Ended Six Months Ended
June 30, June 30,

2024

2023

2024

2023

Net sales

$

319,771

 

$

467,152

 

$

621,743

 

$

934,393

 

Cost of goods sold

 

212,385

 

 

271,776

 

 

414,773

 

 

544,563

 

Gross profit

 

107,386

 

 

195,376

 

 

206,970

 

 

389,830

 

 
Operating expenses
Selling, general and administrative

 

58,467

 

 

67,500

 

 

112,202

 

 

138,491

 

Research and development

 

33,189

 

 

34,611

 

 

67,153

 

 

67,843

 

Amortization of acquisition-related intangible assets

 

3,854

 

 

3,816

 

 

7,664

 

 

7,668

 

(Gain)loss on disposal of fixed assets

 

(82

)

 

(105

)

 

(4,954

)

 

(153

)

Restructuring charge

 

8,250

 

 

-

 

 

8,250

 

 

-

 

Other operating (income)expense

 

-

 

 

(13

)

 

(1

)

 

(13

)

Total operating expense

 

103,678

 

 

105,809

 

 

190,314

 

 

213,836

 

 
Income from operations

 

3,708

 

 

89,567

 

 

16,656

 

 

175,994

 

 
Other (expense) income
Interest income

 

4,237

 

 

2,224

 

 

8,851

 

 

3,996

 

Interest expense

 

(852

)

 

(2,189

)

 

(1,384

)

 

(4,321

)

Foreign currency gain(loss), net

 

799

 

 

(2,217

)

 

1,771

 

 

(4,110

)

Unrealized gain(loss) on investments

 

4,350

 

 

12,172

 

 

4,720

 

 

16,061

 

Other income

 

562

 

 

1,398

 

 

996

 

 

1,928

 

Total other income (expense)

 

9,096

 

 

11,388

 

 

14,954

 

 

13,554

 

 
Income before income taxes and noncontrolling interest

 

12,804

 

 

100,955

 

 

31,610

 

 

189,548

 

Income tax provision

 

2,643

 

 

17,224

 

 

6,180

 

 

33,840

 

Net income

 

10,161

 

 

83,731

 

 

25,430

 

 

155,708

 

Less net (income) attributable to noncontrolling interest

 

(2,161

)

 

(1,711

)

 

(3,392

)

 

(2,538

)

Net income attributable to common stockholders

$

8,000

 

$

82,020

 

$

22,038

 

$

153,170

 

 
Earnings per share attributable to common stockholders:
Basic

$

0.17

 

$

1.79

 

$

0.48

 

$

3.35

 

Diluted

$

0.17

 

$

1.77

 

 

0.48

 

$

3.31

 

Number of shares used in earnings per share computation:
Basic

 

46,133

 

 

45,733

 

 

46,083

 

 

45,667

 

Diluted

 

46,324

 

 

46,243

 

 

46,320

 

 

46,263

 

Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise