Diodes Inc. Reports Second Quarter Results, Record Revenues
Diodes Inc. reported financial results for the second quarter ending June 30, 2007. Revenues for the second quarter of 2007 increased 16.4% to a record $96.3 million, compared to $82.7 million reported in the second quarter of 2006. Sequentially, revenues were 4.6% higher than the first quarter of 2007 as a 7% increase in units sold was partially offset by a 2% decrease in pricing.
Second quarter net income, which included a one-time $1.8 million restructuring charge related to consolidating its Asia analog operations, was $12.2 million, or $0.44 per diluted share ($0.29 split adjusted), compared to $11.4 million, or $0.41 ($0.27 split adjusted), in the second quarter of 2006 and $13.0 million, or $0.47 ($0.31 split adjusted) per share, in the prior quarter. On July 10th, the company announced a 3-for-2 stock split in the form of a 50% stock dividend payable on July 30, 2007 to stockholders of record on July 20, 2007.
Adjusted net income for the second quarter of 2007, which primarily excludes $1.4 million SFAS 123R stock option expense and the one-time $1.8 million restructuring charge to consolidate the analog manufacturing from Taiwan to China, was $15.0 million, or $0.53 per share ($0.35 split adjusted), an increase of 16.3% compared to the $12.9 million, or $0.45 ($0.30 split adjusted) per share, reported in the year-ago quarter and $14.2 million, or $0.50 ($0.33 split adjusted) per share, reported in the first quarter of 2007.
Gross profit for the second quarter of 2007 increased 11.8% compared to the same period last year to $30.7 million, or 31.9% of revenue, compared to 33.2% in the prior-year quarter, and 32.1% in the first quarter of 2007. While sequential unit sales increased 7.2%, overall gross margin was affected by a 2.4% decrease in average selling prices.
For the quarter, SG&A expenses were at 13.9% of revenue, or $13.4 million, compared to 14.2% of revenue, or $11.8 million, in the comparable quarter last year. Included in SG&A was non-cash, SFAS 123R, share-based compensation of $1.2 million and $1.4 million in the second quarters of 2007 and 2006, respectively.