Diodes Inc. benefits from Euro Automotive and Industrial Markets

Diodes Incorporated today reported its financial results for the second quarter ended June 30, 2015. Revenue was $219.5 million, an increase of 6.4 percent from the $206.2 million in the first quarter 2015 and a decrease of 1.7 percent from the $223.2 million in the second quarter 2014; Gross profit was $69.4 million, compared to $63.9 million in the first quarter 2015 and $70.3 million in the second quarter 2014; Gross profit margin was 31.6 percent, compared to 31.0 percent in the first quarter 2015 and 31.5 percent in the second quarter 2014;

GAAP net income was $15.1 million, or $0.31 per diluted share, compared to first quarter 2015 of $11.1 million, or $0.23 per diluted share, and second quarter 2014 of $17.4 million, or $0.36 per diluted share; and Achieved $14.4 million of cash flow from operations, and ($9.0) million of free cash flow, including $23.3 million of capital expenditures primarily for the Chengdu site expansion. Net cash flow was ($27.5) million, which includes the pay down of $18.1 million of long-term debt.

Commenting on the results, Dr. Keh-Shew Lu, President and Chief Executive Officer, stated, “Revenue was up 6.4 percent sequentially due to continued strength in the industrial and automotive markets, especially in Europe where revenue increased 8 percent after growing 14 percent last quarter despite the weak Euro. Our growth this quarter is particularly noteworthy considering the continued weakness in the computing market. Also significant, we improved gross margin 60 basis points sequentially despite pricing pressure in the computing market as we continued to benefit from our product mix improvements and cost reduction efforts.

“As mentioned in the past, we have been strategically focusing our efforts on increasing content in the industrial and automotive markets. We have introduced a growing number of new products that meet the stringent requirements of these markets. In fact, we have now achieved two consecutive quarters of industrial sales exceeding 23 percent of total revenue, and our automotive sales reached 5 percent on record automotive revenue. Additionally, we have expanded our technical and sales resources to deepen relationships with customers in North America and Europe, which we believe will contribute to growth in both the intermediate and long-term.

“We also continue to broaden our product offerings for high-volume portable electronics and are securing an increasing number of design wins in wireless charging as well as the wearables and Internet of Things markets. Although these markets are in the early stages of expansion, Diodes is well positioned to capture share in these growing markets based on our expertise in miniaturized and power efficient packaging.”