News

Diodes Inc. Reports First Quarter Financial Results

May 03, 2007 by Jeff Shepard

Diodes Inc. reported solid financial results for the first quarter ending March 31, 2007. Revenues for the first quarter of 2007 increased 25.0% to $92.0 million, compared to the $73.6 million reported in the year-ago quarter. Sequentially, revenues were 2.6% lower than the fourth quarter of 2006 as a 2% increase in units sold was offset by an overall 4% price decrease. Net income increased 39.7% year-over-year to $13.0 million, or $0.47 per fully diluted share, up from $9.3 million, or $0.34 per share, in the first quarter of 2006. Adjusted net income (excluding SFAS 123R stock option expense) for the first quarter of 2007 was $14.2 million or $0.50 per share, an increase of 32.7% over the $10.7 million or $0.38 reported in the year-ago quarter.

Commenting on the quarter, Dr. Keh-Shew Lu, President and CEO of Diodes Inc., said, "We are pleased with the progress we made during the first quarter of 2007 as Diodes continued to outperform the industry despite the weakness in Asia. We are also pleased with the execution of our analog strategy, the integration of our new Super Barrier Rectifier (SBR®) product line, the introduction of several innovative new products, and the expansion of our distribution in Europe, positioning Diodes to continue to deliver profitable growth in the quarters and years ahead. In addition, with a strong balance sheet, we are actively evaluating corporate growth initiatives, including acquisitions, to accelerate our profitable growth."

Gross profit for the first quarter of 2007 increased 21.9% compared to the same period last year to $29.5 million, or 32.1% of revenue, compared to 32.9% in the prior-year quarter, and 33.4% in the fourth quarter of 2006. While sequential unit sales increased 2% and analog margin increased approximately 300 basis points, overall gross margin was affected by a 6% decrease in discrete selling prices. For the quarter, SG&A expenses were at 13.8% of revenue or $12.7 million, compared to 15.3% of revenue or $11.3 million, in the comparable quarter last year. Included in first quarter 2007 SG&A was $1.3 million in non-cash, SFAS 123R share-based compensation. Operating income for the first quarter increased 28.2% to $13.9 million, or 15.1% of sales, compared to $10.8 million or 14.7% of sales for the first quarter of 2006.