News

Diodes Inc. Reports Second Quarter Results, Record Revenues

August 05, 2007 by Jeff Shepard

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.