Diodes Inc. reported record financial results for the third quarter ended September 30, 2007. Revenues for the third quarter of 2007 increased 13.7% to a record $105.3 million, compared to $92.6 million reported in the third quarter of 2006. Sequentially, revenues were 9.3% higher than the second quarter of 2007 due to a 7% increase in units sold and a 2% increase in average selling price.
Gross profit for the third quarter of 2007 increased 11.3% to $34.2 million, or 32.4% of revenue, as compared to $30.7 million, or 33.2% of revenue in the prior-year quarter and 31.9% in the second quarter of 2007.
Commenting on the quarter, Dr. Keh-Shew Lu, President and CEO of Diodes Incorporated, said, "The third quarter marks another record quarter of revenues for Diodes, which was further highlighted by a 26% year-over-year improvement to the record bottom line. Market share for our discrete products was at an all time high driven by continued gains in Asia and Europe. Additionally, our strategic initiatives targeting our analog business as well as our aggressive new product introductions, that target the high growth electronics markets, continue to deliver positive results, which have consistently outperformed the industry. We believe that our continued focus on revenue expansion, combined with increased scale and cost efficiencies, will result in sustainable, profitable growth for the company."
Third quarter net income was a record $16.1 million, or $0.38 per diluted share, compared to $12.8 million, or $0.30 on a split-adjusted basis, in the third quarter of 2006 and $12.2 million, or $0.29 per share on a split adjusted basis, in the prior quarter. Adjusted net income for the third quarter of 2007, which primarily excludes $1.3 million SFAS 123R stock option expense, was a record $17.1 million, or $0.40 per share, an increase of 20.8% compared to the $14.2 million, or $0.33 per share on a split adjusted basis, reported in the year-ago quarter and an increase of 14.2% compared to the $15.0 million, or $0.35 per share on a split adjusted basis, reported in the second quarter of 2007.
At September 30, 2007, Diodes had approximately $363 million in total cash and short-term investments, $436 million in working capital, $238 million in long-term debt (including the convertible note), and unused and available credit facilities of $52 million.
