Diodes Inc. Reports Second Quarter 2008 Financial Results
Diodes Inc. reported financial results for the second quarter ended June 30, 2008. Diodes’ second quarter financials include one month of financial results from Zetex plc following the successful June completion of the acquisition.
Revenue for the second quarter of 2008 increased 20.5% to $116.0 million as compared to $96.3 million reported in the second quarter of 2007, and increased 21.4% when compared to $95.6 million reported in the first quarter of 2008. Gross profit for the second quarter of 2008 increased 29.1% to $39.6 million, or 34.1% of revenue, compared to $30.7 million, or 31.9% of revenue, in the prior year quarter and $31.9 million, or 33.4% of revenue, in the first quarter of 2008.
Commenting on the quarter, Dr. Keh-Shew Lu, President and CEO of Diodes Inc., said, "I am pleased to report strong quarterly financial results, including record revenue at the high end of our guidance and a 24% sequential increase in gross profit. The growth achieved in the quarter resulted from strength in our core business, particularly in Asia, combined with the one-month contribution from the Zetex acquisition. We achieved these results despite the continued weakening of the global economic environment and are confident in our ability to achieve growth rates that consistently exceed those of the industry."
Dr. Lu further commented, "In terms of the acquisition, our integration efforts are well underway with significant progress made in aligning and integrating the sales and distribution channels across all geographies. Zetex was accretive on an operational basis in the month of June, and we are well positioned to accelerate our growth through the extensive synergies and cross-selling opportunities of the combined companies, while capitalizing on the cost savings and operational benefits."
Second quarter net income, which included a one-time, $1.5 million non-cash currency hedge loss related to the Zetex acquisition, was $13.1 million, or $0.31 per diluted share, compared to $12.2 million, or $0.29 per share, in the second quarter of 2007 and $14.2 million, or $0.33 per share, in the first quarter of 2008.
Adjusted net income for the second quarter of 2008, which excluded $1.2 million of SFAS 123R stock option expenses and the one-time non-cash currency hedge loss, was $15.0 million, or $0.35 per diluted share.
As of June 30, 2008, Diodes had approximately $86.1 million in cash, $294.7 million in long-term investments, $196.7 million in working capital, $400 million in long-term debt (including the convertible notes) and unused and available credit facilities of $49.5 million.