Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

March 5, 2012

Date of Report (Date of earliest event reported)

 

 

DIODES INCORPORATED

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   002-25577   95-2039518

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

4949 Hedgcoxe Road, Suite 200

Plano, Texas

  75024
(Address of principal executive offices)   (Zip Code)

(972) 987-3900

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 7.01. Regulation FD Disclosure.

On March 5, 2012, a Company representative attended Raymond James 33rd Annual Institutional Investors Conference and held a presentation meeting. A copy of the presentation slides is attached as Exhibit 99.1 to this Report.

The information in this Item 7.01, including Exhibit 99.1, will not be treated as filed for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section. This information will not be incorporated by reference into a filing under the Securities Act of 1933, or into another filing under the Exchange Act, unless that filing expressly refers to specific information in this Report. The furnishing of the information in this Item 7.01 is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information in this Item 7.01 is material information that is not otherwise publicly available.

In the presentation, the Company utilized financial measures and terms not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”) in order to provide stockholders with an alternative method for assessing our operating results in a manner that enables stockholders to more thoroughly evaluate our current performance as compared to past performance. We also believe these non-GAAP measures provide stockholders with a more informed baseline for modeling the Company’s future financial performance. Our management uses these non-GAAP measures for the same purpose. We believe that our stockholders should have access to, and that we are obligated to provide, the same set of tools that we use in analyzing our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. See Exhibit 99.1 to the Company’s Form 8-K, filed on February 14, 2012 for definitions of the non-GAAP financial measures, together with an explanation of why management uses these measures and why management believes that these non-GAAP financial measures are useful to stockholders. In addition, in Exhibit 99.1 to the Company’s Form 8-K, filed on February 14, 2012, we have provided tables to reconcile the non-GAAP financial measures utilized to GAAP financial measures.

Cautionary Information Regarding Forward-Looking Statements

Except for the historical and factual information contained in the accompanying slides attached as exhibits to this Report, the matters set forth therein are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but are not limited to, such factors as the Company’s’ business and growth strategy; the introduction and market reception to new product announcements; fluctuations in product demand and supply; prospects for the global economy; continued introduction of new products; the Company’s ability to maintain customer and vendor relationships; technological advancements; impact of competitive products and pricing; growth in targeted markets; successful integration of acquired companies and/or assets; the Company’s ability to successfully make additional acquisitions; risks of domestic and foreign operations, including excessive operation costs, labor shortages and joint venture prospects; unfavorable currency exchange rates; availability of tax credits; the Company’s ability to maintain its current growth strategy or continue to maintain its current performance and loadings in manufacturing facilities; our future guidance may be incorrect; the global economic weakness may be more severe or last longer than Company currently anticipate; and other information detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the presentation slides. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit

Number

  

Description

99.1   

Presentation Slides for Raymond James 33rd Annual Institutional Investors Conference in Orlando, Florida on March 5, 2012.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: March 5, 2012     DIODES INCORPORATED
    By  

/s/ Richard D. White

RICHARD D. WHITE

      Chief Financial Officer
Presentation Slides
Raymond James 33
rd
Annual Institutional Investors
Conference Orlando, FL
March 5-6, 2012
Exhibit 99.1


Safe Harbor Statement
Page 2
Any statements set forth herein that are not historical facts are forward-looking statements that involve risks and uncertainties that
could cause actual results to differ materially from those in the forward-looking statements.
Potential
risks
and
uncertainties
include,
but
are
not
limited
to,
such
factors
as
Diodes’
business and growth strategy; the
introduction and market reception to new product announcements; fluctuations in product demand and supply; prospects for the
global
economy;
continued
introduction
of
new
products;
Diodes’
ability to maintain customer and vendor relationships;
technological advancements; impact of competitive products and pricing; growth in targeted markets; successful integration of
acquired
companies
and/or
assets;
Diodes’
ability to successfully make additional acquisitions; risks of domestic and foreign
operations,
including
excessive
operation
costs,
labor
shortages
and joint venture prospects; unfavorable currency exchange
rates;
availability
of
tax
credits;
Diodes’
ability to maintain its current growth strategy or continue to maintain its current
performance and loadings in manufacturing facilities; our future guidance may be incorrect; the global economic weakness may
be
more
severe
or
last
longer
than
Diodes
currently
anticipate;
and
other
information
detailed
from
time
to
time
in
filings
with
the
United States Securities and Exchange Commission.
This presentation also contains non-GAAP measures.  See the Company’s press release on February 8, 2012 titled, “Diodes
Incorporated
Reports
Fiscal
2011
and
Fourth
Quarter
Financial
Results”
for
detailed
information
related
to
the
Company’s
non-
GAAP measures and a reconciliation of GAAP net income (loss) to non-GAAP net income (loss). 


Management Representative
Page 3
Dr. Keh-Shew Lu
President and CEO
President and CEO   Since 2005
Director –
Diodes            10 years
Texas Instruments           27 years
Experience:
Senior Vice President of TI Worldwide Analog and Logic
Senior Vice President of TI Worldwide Memory
President
of
Texas
Instruments
Asia
Education:
Master's Degree and Doctorate in Electrical Engineering
Texas Tech University
Bachelor's Degree in Engineering
National
Cheng
Kung
University
-
Taiwan


Company Representative
Page 4
Laura Mehrl
Director of Investor Relations
Since May 2010
Experience:
Director of Investor Relations, Diodes Incorporated, Plano, Texas
Senior Business Development Manager, STMicroelectronics, Carrollton, 
Texas
Sales Director for Analog Devices Inc., Shanghai, China
Product Marketing Manager at Texas Instruments (TI), Dallas, Texas
Senior Engineer at Lattice Semiconductor Inc., Hillsboro, Oregon
Wafer fab design engineer and product engineer at TI, Lubbock, Texas
Education:
BS in Electrical and Computer Engineering, University of Iowa
MBA
with
concentration
in
International
Marketing,
Texas
Tech
University


Page 5
A leading global manufacturer and
supplier of high-quality application
specific, standard products
the broad discrete, logic and analog
markets, serving the computing,
consumer, industrial,
communications
and automotive
segments.
About Diodes Incorporated
within


Business Objective
To consistently achieve
above-market profitable growth
utilizing our innovative and
cost-effective packaging technology,
suited for high volume, high growth
markets by leveraging process expertise
and design excellence to deliver high
quality semiconductor products
Page 6


2011 Total Semiconductor Market ($300 bn)
Significant Market Opportunity
Page 7


Diodes Growth Strategy
Page 8
Many Paths for Growth:
Product portfolio
Product arena
Product line expansion
Performance enhancement
Application space
Targeted end equipments
Broad customer base
Increased product
coverage
Packaging breadth
Broad packaging portfolio
Increased power density
Small form factor


2006
2010
Product Portfolio Progression
Page 9
Discrete
Diodes
MOSFETs
Rectifiers
Transistors
Protection Devices
Analog
Power Management
Power Switches
Standard Linear
Sensors
LED Drivers
Logic
Low Voltage CMOS
High Speed CMOS
Advanced Ultra-Low
Power CMOS


Performance Enhancement
Page 10
Diodes’
product upgrade has expanded our SAM
SBR
(Super
Barrier
Rectifiers) (Vb < 400v)
DIOFET
(Low R
DS(on)
, Vb < 100V)
CMOS LDO
(Low power)
DC-DC
(Asynchronous, high
current)
SKY Rectifiers
MOSFETs
Bipolar LDO
DC-DC
(Asynchronous)
DIODESTAR    Rectifiers
(Vb > 600v)
DIODESTAR    MOSFETs
(Ultra low R
DS(on)
, Vb > 600V)
Low Noise LDO
DC-DC
(Synchronous, with
low & high current)
TM
TM
TM
®


Efficiency, Functionality and Control for Smart Phones
Page 11
LCD Backlighting
LED Drivers
Boost Converters
Schottky Diodes
LCD / OLED Display Bias
LCD Bias ICs
OLED Bias ICs
Schottky Diodes
LED Flash Module
Camera Flash Drivers
ZXMN series MOSFETs
Keypad Backlighting
LED Drivers
Boost Converters
Schottky Diodes
System Voltage Conversion
Low Dropout Regulators
DC-DC Converters
Schottky Diodes
Low-Saturation Bipolar Transistors
GPS Antenna Detection
Current Monitors
Flip / Slide Detection
Hall Effect Sensors
Hall Effect Drivers
Battery Power Management
USB Power Switches
Current Monitors
Charger ICs
Low-Saturation Bipolar Transistors
ZXMP series MOSFETs
RF Power Amplifier
Low Dropout Regulators


Strong Relationships Drive LCD/LED TV Product Roadmaps
Page 12
LCD Display Buffer
40V High-gain BJT
System Power Conversion
Low Dropout Regulators
DC-DC Converters
Voltage References
Synchronous MOSFET Controllers
40V/100V SBR and Schottkys
Bridge Rectifier Diodes
LCD LED Backlighting
Current Monitors
400V High-gain NPN BJT
60V/100V High-gain NPN BJT
60V/100V N-channel MOSFETS
CCFL Backlighting
30V Low On-resistance MOSFETs
System Interface
USB Power Switches
Zener and TVS Arrays
System Power Management
Buck DC-DC Converters
Low Dropout Regulators
20V/30V/40V SBR®
and Schottkys
30V P-Channel MOSFETs
30V Low-saturation PNP BJT
Antenna Tuner
DC-DC Converters
40V Schottkys
Audio Amplifier
Buck DC-DC Converters
Schottky Diodes
SBR


Product Breadth and Performance for Computing Platforms
Page 13
LCD / LED Backlighting
LED Drivers
Boost Converters
Schottky Diodes
Battery Power Management
Current Monitors
Load Switches
Low-Saturation BJT
ZXMP series MOSFETs
System Voltage Conversion
Low Dropout Regulators
DC-DC Converters
Schottky Diodes
Low-Saturation BJT
Open / Close Detection
Hall Effect Sensors
Hall Effect Drivers
System Power Management
Buck DC-DC Converters
Low Dropout Regulators
Super Barrier Rectifiers
Schottky Diodes
P-Channel MOSFETs
Low-Saturation BJT
System Interface
USB Power Switches
Zener and TVS Arrays
Audio Amplifier
Buck DC-DC Converters
Schottky Diodes
Super Barrier Rectifiers
Wireless Connectivity
DC-DC Converters
Low Dropout Regulators


Page 14
Packaging Focus: Miniaturization and Power Efficiency
TO252
TO220/263/
ITO220S
SOT223
SIP-3/4
SOT89
SOT666
SOT953/963
SOT26/363
SOT25/353
SOT143/SC82
PD-5
PM-III
PD-323
PD-123
Power DI
5060
SOT23F
SOT23/523
SC59
SOD-323F
SOD123/323
SOD323F
QFN 3~16 pin
0.4mm DFN
0.3mm DFN
DFN1006-2
DFN0603-2
SOIC14
SOLAR
PowerDI-5SP
TSOT23-3
WL-CSP
TSSOP14/16
DFN0806-3
DFN1114-3
Pyramid Stack
DFN5060-4
Bridge
SOIC-16
QSOP16/20L
MSOP8/10
SOIC8
TSSOP8
TSOT23-5/6


Page 15
Packaging Focus: Miniaturization and Power Efficiency
Power Efficiency
Miniaturization
DFN 0603-2 Possibly
the smallest Discrete
semiconductor package.
Compared to a TO252, the
PowerDI
®
5 package delivers
twice the power density from     
a 55% smaller footprint.
PowerDI
®
5
TO252


Efficient Manufacturing + Superior Processes
Page 16
Shanghai-based packaging with capacity
approximately 28 billion units
Flexible and optimized manufacturing
process = low packaging cost
Additional packaging facilities in
Neuhaus, Germany and JV in Chengdu,
China
Bipolar process technology for
discrete and ICs
High volume 5”
and 6”
wafer fab in
Kansas City, Missouri for discretes
6”
Wafer fab in Oldham, United Kingdom
Strong engineering capabilities
Packaging
Wafer Fabs
Economies of Scale: Production Units in Shanghai (bn)
8.2bn
11.8bn
15.4bn
16.7bn
5.4bn
2.1bn
3.4bn
1.3bn
16.0bn
20.3bn
Capex Model = 10% -
12% of Revenue
23.2bn
25.3bn
27.8bn


Collaborative Customer Relationships
Page 17


Annual Revenue Growth Rates
Outperforming the Industry
Page 18
2003 to 2011 Growth
Diodes Inc.:          21 %
SAM Industry:      4.4%
Industry (Discrete + Analog)
*Acquisition Years


Revenue Growth
( In millions )
137
186
215
343
401
433
434
613
+41%
635
+3.6%
0
100
200
300
400
500
600
700
2003
2004
2005
2006
2007
2008
2009
2010
2011


Revenue Profile –
4Q2011
By Channel
By Region
By Segment
Page 20
11%
78%
11%
Asia Pacific
Europe
North America
50%
50%
Distribution
OEM / EMS
28%
19%
16%
34%
3%
Industrial
Consumer
Communications
Automotive
Computing


Page 21
Year 2011 Highlights
Revenue
increased
to
a
record
$635.3
million,
an
increase
of
3.6
percent
over the $612.9 million in 2010;
Gross profit was 193.7 million compared to $224.9 million in 2010;
Gross margin 30.5 percent compared to 36.7 percent in 2010;
GAAP net income was $50.7 million, or $1.09 per diluted share, compared
to $76.7 million, or $1.68 per diluted share in 2010; achieved 21 consecutive
years of profitability;
Non-GAAP adjusted net income was a $58.0 million, or $1.24 per diluted
share, compared to $82.9 million, or $1.82 per diluted share in 2010;
Achieved $61.7 million cash flow from operations. Excluding certain tax
accounting
adjustments
related
to
the
Convertible
Senior
Notes’
retirement,
adjusted cash flow from operation was $77 million.  Net cash flow was a
negative ($141.4) due to the retirement of the Convertible Senior Notes.


Fourth Quarter 2011 Financial Performance
Page 22
(In millions except per share) 
Revenue Growth (Q-Q)
EBITDA(Non-
GAAP)
Revenue
$163.8
$160.6
$143.3
($20.5)
($17.3)
0.4%
(5%)
(10.8%)
(12.5%)
(10.8%)
Gross Profit
$62.6
$45.2
$35.5
($27.1)
($9.7)
Gross Margin %
38.3%
28.1%
24.8%
(1350bp)
(330bp)
Operating Profit
$32.2
$13.4
$4.9
($27.3)
($8.5)
Net Income
$24.0
$10.0
$3.1
($20.9)
($6.9)
Earning per Share
$0.52
$0.21
$0.07
($0.45)
($0.14)
Cash Flow from Operations
$28.0
$17.0
($3.0)
($31.0)
($20.0)
$46.7
$29.2
$19.7
($27.0)
($9.5)
4Q10
3Q11
Y/Y
Q/Q
4Q11


Balance Sheet
Page 23
Sept 30, 2011
Cash
$271
$125
$130
Inventory
$121
$139
$140
Current Assets
$429
$427
Total Assets
$847
$774
$793
Convertible Notes ST/LT
$128
$0.236
0
Other Long-term Debt
$  3
$  3
$  3
Total Liabilities
$294
$156
$144
Total Equity
$553
$617
$649
Dec 31, 2011
Dec 31, 2010
(adjusted)
In millions
$541


Strategy: Profitable Growth
Page 24


Thank you
Company Contact:
Diodes Incorporated
Laura Mehrl
Director of Investor Relations
P: 972-987-3959
E: laura_mehrl@diodes.com
Investor Relations Contact:
Shelton Group
Leanne K. Sievers
EVP, Investor Relations
P: 949-224-3874
E: lsievers@diodes.com
www.diodes.com