Delaware
|
95-2039518
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
Number)
|
3050
East Hillcrest Drive
|
||
Westlake
Village, California
|
91362
|
|
(Address
of principal executive offices)
|
(Zip
code)
|
December
31,
|
June
30,
|
||||||
2004
|
2005
|
||||||
(Unaudited)
|
|||||||
CURRENT
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
18,970,000
|
$
|
33,014,000
|
|||
Accounts
receivable
|
|||||||
Customers
|
38,682,000
|
43,782,000
|
|||||
Related
parties
|
5,526,000
|
4,599,000
|
|||||
44,208,000
|
48,381,000
|
||||||
Less:
Allowance for doubtful receivables
|
432,000
|
464,000
|
|||||
43,776,000
|
47,917,000
|
||||||
Inventories
|
22,238,000
|
22,304,000
|
|||||
Deferred
income taxes, current
|
2,453,000
|
2,375,000
|
|||||
Prepaid
expenses and other current assets
|
4,243,000
|
4,160,000
|
|||||
Prepaid
income taxes
|
406,000
|
883,000
|
|||||
Total
current assets
|
92,086,000
|
110,653,000
|
|||||
PROPERTY,
PLANT AND EQUIPMENT,
at cost, net
|
|||||||
of
accumulated depreciation and amortization
|
60,857,000
|
63,005,000
|
|||||
DEFERRED
INCOME TAXES,
non-current
|
7,970,000
|
7,309,000
|
|||||
OTHER
ASSETS
|
|||||||
Goodwill
|
5,090,000
|
5,090,000
|
|||||
Other
|
1,798,000
|
323,000
|
|||||
TOTAL
ASSETS
|
$
|
167,801,000
|
$
|
186,380,000
|
December
31,
|
June
30,
|
||||||
2004
|
2005
|
||||||
(Unaudited)
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Line
of credit
|
$
|
6,167,000
|
$
|
--
|
|||
Accounts
payable
|
|||||||
Trade
|
17,274,000
|
18,374,000
|
|||||
Related
parties
|
3,936,000
|
6,071,000
|
|||||
Accrued
liabilities
|
11,459,000
|
12,730,000
|
|||||
Current
portion of long-term debt
|
|||||||
Related
party
|
2,500,000
|
2,500,000
|
|||||
Other
|
1,014,000
|
4,391,000
|
|||||
Current
portion of capital lease obligations
|
165,000
|
136,000
|
|||||
Total
current liabilities
|
42,515,000
|
44,202,000
|
|||||
LONG-TERM
DEBT,
net of current portion
|
|||||||
Related
party
|
1,250,000
|
--
|
|||||
Other
|
6,583,000
|
3,877,000
|
|||||
CAPITAL
LEASE OBLIGATIONS,
net of current portion
|
2,172,000
|
1,678,000
|
|||||
MINORITY
INTEREST IN JOINT VENTURE
|
3,133,000
|
3,630,000
|
|||||
STOCKHOLDERS’
EQUITY
|
|||||||
Class
A convertible preferred stock -
par
value $1.00 per share;
|
|||||||
1,000,000
shares authorized;
|
|||||||
no
shares issued and outstanding
|
--
|
--
|
|||||
Common
stock - par value $0.66 2/3 per share;
|
|||||||
30,000,000
shares authorized; 15,763,266 and 16,185,552
|
|||||||
shares
issued
at December
31, 2004
|
|||||||
and
June 30, 2005, respectively
|
7,260,000
|
7,538,000
|
|||||
Additional
paid-in capital
|
24,765,000
|
30,199,000
|
|||||
Retained
earnings
|
81,330,000
|
96,235,000
|
|||||
113,355,000
|
133,972,000
|
||||||
Less:
|
|||||||
Treasury
stock - 1,613,508 shares of common stock, at cost
|
1,782,000
|
1,782,000
|
|||||
Accumulated
other comprehensive income
|
(575,000
|
)
|
(803,000
|
)
|
|||
1,207,000
|
979,000
|
||||||
Total
stockholders’ equity
|
112,148,000
|
132,993,000
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
167,801,000
|
$
|
186,380,000
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
2004
|
2005
|
2004
|
2005
|
||||||||||
Net
sales
|
$
|
47,017,000
|
$
|
50,598,000
|
$
|
88,442,000
|
$
|
99,198,000
|
|||||
Cost
of goods sold
|
31,989,000
|
33,101,000
|
60,664,000
|
65,105,000
|
|||||||||
Gross
profit
|
15,028,000
|
17,497,000
|
27,778,000
|
34,093,000
|
|||||||||
Selling,
general and administrative expenses
|
6,417,000
|
7,196,000
|
11,908,000
|
13,888,000
|
|||||||||
Research
and development expenses
|
815,000
|
850,000
|
1,562,000
|
1,750,000
|
|||||||||
Loss
(gain) on sale of fixed assets
|
(8,000
|
)
|
--
|
15,000
|
(105,000
|
)
|
|||||||
Total
operating expenses
|
7,224,000
|
8,046,000
|
13,485,000
|
15,533,000
|
|||||||||
Income
from operations
|
7,804,000
|
9,451,000
|
14,293,000
|
18,560,000
|
|||||||||
Other
income (expense)
|
|||||||||||||
Interest
income
|
8,000
|
39,000
|
10,000
|
43,000
|
|||||||||
Interest
expense
|
(153,000
|
)
|
(118,000
|
)
|
(337,000
|
)
|
(277,000
|
)
|
|||||
Other
|
24,000
|
12,000
|
(124,000
|
)
|
(21,000
|
)
|
|||||||
(121,000
|
)
|
(67,000
|
)
|
(451,000
|
)
|
(255,000
|
)
|
||||||
Income
before income taxes and minority interest
|
7,683,000
|
9,384,000
|
13,842,000
|
18,305,000
|
|||||||||
Income
tax provision
|
(1,383,000
|
)
|
(1,461,000
|
)
|
(2,543,000
|
)
|
(2,903,000
|
)
|
|||||
Income
before minority interest
|
6,300,000
|
7,923,000
|
11,299,000
|
15,402,000
|
|||||||||
Minority
interest in joint venture earnings
|
(177,000
|
)
|
(258,000
|
)
|
(319,000
|
)
|
(497,000
|
)
|
|||||
Net
income
|
$
|
6,123,000
|
$
|
7,665,000
|
$
|
10,980,000
|
$
|
14,905,000
|
|||||
Earnings
per share
|
|||||||||||||
Basic
|
$
|
0.46
|
$
|
0.53
|
$
|
0.83
|
$
|
1.04
|
|||||
Diluted
|
$
|
0.40
|
$
|
0.47
|
$
|
0.72
|
$
|
0.93
|
|||||
Number
of shares used in computation
|
|||||||||||||
Basic
|
13,265,146
|
14,418,819
|
13,180,992
|
14,318,916
|
|||||||||
Diluted
|
15,329,760
|
16,209,651
|
15,306,089
|
16,071,423
|
Six
Months Ended
June
30,
|
|||||||
2004
|
2005
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|||||||
Net
income
|
$
|
10,980,000
|
$
|
14,905,000
|
|||
Adjustments
to reconcile net income to net cash provided
by operating activities:
|
|||||||
Depreciation
and amortization
|
6,145,000
|
7,813,000
|
|||||
Minority
interest earnings
|
319,000
|
497,000
|
|||||
Share
grant expense
|
--
|
358,000
|
|||||
Loss
(gain) on sale of property, plant and equipment
|
15,000
|
(105,000
|
)
|
||||
Changes
in operating assets:
|
|||||||
Accounts
receivable
|
(6,568,000
|
)
|
(4,336,000
|
)
|
|||
Inventories
|
(3,486,000
|
)
|
(66,000
|
)
|
|||
Prepaid
expenses and others
|
(66,000
|
)
|
1,558,000
|
||||
Deferred
income taxes
|
334,000
|
263,000
|
|||||
Changes
in operating liabilities:
|
|||||||
Accounts
payable
|
3,889,000
|
3,235,000
|
|||||
Accrued
liabilities
|
2,219,000
|
(1,207,000
|
)
|
||||
Income
taxes payable
|
--
|
1,223,000
|
|||||
Net
cash provided by operating activities
|
13,781,000
|
24,138,000
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|||||||
Purchase
of property, plant and equipment
|
(10,300,000
|
)
|
(6,845,000
|
)
|
|||
Proceeds
from sale of property, plant and equipment
|
55,000
|
---
|
|||||
Net
cash used by investing activities
|
(10,245,000
|
)
|
(6,845,000
|
)
|
|||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|||||||
Repayments
of line of credit, net
|
(827,000
|
)
|
(6,167,000
|
)
|
|||
Net
proceeds from the issuance of common stock
|
1,868,000
|
2,973,000
|
|||||
Repayments
of long-term debt, net
|
(2,916,000
|
)
|
(579,000
|
)
|
|||
Repayments
of capital lease obligations
|
(90,000
|
)
|
(79,000
|
)
|
|||
Management
incentive reimbursement from LSC
|
375,000
|
375,000
|
|||||
Dividend
to minority shareholder
|
(300,000
|
)
|
---
|
||||
Net
cash used by financing activities
|
(1,890,000
|
)
|
(3,477,000
|
)
|
|||
EFFECT
OF EXCHANGE RATE CHANGES
|
|||||||
ON
CASH AND CASH EQUIVALENTS
|
93,000
|
228,000
|
|||||
INCREASE
(DECREASE) IN CASH AND EQUIVALENTS
|
1,739,000
|
14,044,000
|
|||||
CASH
AT BEGINNING OF PERIOD
|
12,847,000
|
18,970,000
|
|||||
CASH
AT END OF PERIOD
|
$
|
14,586,000
|
$
|
33,014,000
|
Six
Months Ended
June
30,
|
|||||||
2004
|
2005
|
||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|||||||
Cash
paid during the period for:
|
|||||||
Interest
|
$
|
343,000
|
$
|
289,000
|
|||
Income
taxes
|
$
|
1,592,000
|
$
|
1,627,000
|
|||
Non-cash
activities:
|
|||||||
Tax
benefit of stock options exercised credited to additional paid-in
capital
|
$
|
1,755,000
|
$
|
2,201,000
|
December
31,
|
June
30,
|
||||||
2004
|
2005
|
||||||
Finished
goods
|
$
|
13,118,000
|
$
|
13,389,000
|
|||
Work-in-progress
|
2,025,000
|
2,511,000
|
|||||
Raw
materials
|
9,240,000
|
8,558,000
|
|||||
24,383,000
|
24,458,000
|
||||||
Less:
Reserves
|
(2,145,000
|
)
|
(2,154,000
|
)
|
|||
Net
inventory
|
$
|
22,238,000
|
$
|
22,304,000
|
For
the three months ended June 30 (in 000’s except per share
data),
|
|||||||||||||||||||
Amounts
Per Share
|
Amounts
Per Share
|
||||||||||||||||||
2004
|
Basic
|
Diluted
|
2005
|
Basic
|
Diluted
|
||||||||||||||
Net
income
|
$
6,123
|
$
0.46
|
$
0.40
|
$
7,665
|
$
0.53
|
$
0.47
|
|||||||||||||
Additional
compensation for fair value
of stock options, net
of tax effect
|
(316
|
)
|
(0.02
|
)
|
(0.02
|
)
|
(567
|
)
|
(0.04
|
)
|
(0.03
|
)
|
|||||||
Proforma
net income
|
$
|
5,807
|
$
|
0.44
|
$
|
0.38
|
$
|
7,098
|
$
|
0.49
|
$
|
0.44
|
For
the six months ended June 30 (in 000’s except per share
data),
|
|||||||||||||||||||
Amounts
Per Share
|
Amounts
Per Share
|
||||||||||||||||||
2004
|
Basic
|
Diluted
|
2005
|
Basic
|
Diluted
|
||||||||||||||
Net
income
|
$
|
10,980
|
$
|
0.83
|
$
|
0.72
|
$
|
14,905
|
$
|
1.04
|
$
|
0.93
|
|||||||
Additional
compensation for fair value
of stock options,
net of tax effect
|
(630
|
)
|
(0.04
|
)
|
(0.04
|
)
|
(1,083
|
)
|
(0.07
|
)
|
(0.07
|
)
|
|||||||
Proforma
net income
|
$
|
10,350
|
$
|
0.79
|
$
|
0.68
|
$
|
13,822
|
$
|
0.97
|
$
|
0.86
|
Three
months ended
June
30, 2004
|
Revenue
|
%
of Total Revenue
|
|||||
United
States
|
$
|
13,823,000
|
29.4
|
||||
Taiwan
|
$
|
12,434,000
|
26.4
|
||||
China
|
$
|
10,837,000
|
23.0
|
||||
All
Others
|
$
|
9,923,000
|
21.2
|
||||
Total
|
$
|
47,017,000
|
100.0
|
Three
months ended
June
30, 2005
|
Revenue
|
%
of Total Revenue
|
|||||
Taiwan
|
$
|
17,042,000
|
33.7
|
||||
United
States
|
$
|
13,085,000
|
25.9
|
||||
China
|
$
|
12,852,000
|
25.4
|
||||
All
Others
|
$
|
7,619,000
|
15.0
|
||||
Total
|
$
|
50,598,000
|
100.0
|
Six
months ended
June
30, 2004
|
Revenue
|
%
of Total Revenue
|
|||||
United
States
|
$
|
25,550,000
|
28.9
|
||||
Taiwan
|
$
|
23,464,000
|
26.5
|
||||
China
|
$
|
19,161,000
|
21.7
|
||||
All
Others
|
$
|
20,267,000
|
22.9
|
||||
Total
|
$
|
88,442,000
|
100.0
|
Six
months ended
June
30, 2005
|
Revenue
|
%
of Total Revenue
|
|||||
Taiwan
|
$
|
33,606,000
|
33.9
|
||||
China
|
$
|
25,535,000
|
25.7
|
||||
United
States
|
$
|
25,157,000
|
25.4
|
||||
All
Others
|
$
|
14,900,000
|
15.0
|
||||
Total
|
$
|
99,198,000
|
100.0
|
Three
Months Ended
|
Far
East
|
North
America
|
Consolidated
Segments
|
|||||||
June
30, 2004
|
||||||||||
Total
sales
|
$
|
46,185,000
|
$
|
24,051,000
|
$
|
70,236,000
|
||||
Inter-company
sales
|
(18,733,000
|
)
|
(4,486,000
|
)
|
(23,219,000
|
)
|
||||
Net
sales
|
$
|
27,452,000
|
$
|
19,565,000
|
$
|
47,017,000
|
||||
Property,
plant and equipment
|
$
|
43,617,000
|
$
|
11,819,000
|
$
|
55,436,000
|
||||
Assets
|
$
|
99,438,000
|
$
|
43,595,000
|
$
|
143,033,000
|
Three
Months Ended
|
Far
East
|
North
America
|
Consolidated
Segments
|
|||||||
June
30, 2005
|
||||||||||
Total
sales
|
$
|
56,088,000
|
$
|
21,554,000
|
$
|
77,642,000
|
||||
Inter-company
sales
|
(22,815,000
|
)
|
(4,229,000
|
)
|
(27,044,000
|
)
|
||||
Net
sales
|
$
|
33,273,000
|
$
|
17,325,000
|
$
|
50,598,000
|
||||
Property,
plant and equipment
|
$
|
51,582,000
|
$
|
11,423,000
|
$
|
63,005,000
|
||||
Assets
|
$
|
135,414,000
|
$
|
50,966,000
|
$
|
186,380,000
|
Six
Months Ended
|
Far
East
|
North
America
|
Consolidated
Segments
|
|||||||
June
30, 2004
|
||||||||||
Total
sales
|
$
|
87,086,000
|
$
|
45,428,000
|
$
|
132,514,000
|
||||
Inter-company
sales
|
(35,695,000
|
)
|
(8,367,000
|
)
|
(44,072,000
|
)
|
||||
Net
sales
|
$
|
51,391,000
|
$
|
37,061,000
|
$
|
88,442,000
|
||||
Property,
plant and equipment
|
$
|
43,617,000
|
$
|
11,819,000
|
$
|
55,436,000
|
||||
Assets
|
$
|
99,438,000
|
$
|
43,595,000
|
$
|
143,033,000
|
Six
Months Ended
|
Far
East
|
North
America
|
Consolidated
Segments
|
|||||||
June
30, 2005
|
||||||||||
Total
sales
|
$
|
108,803,000
|
$
|
42,924,000
|
$
|
151,727,000
|
||||
Inter-company
sales
|
(44,649,000
|
)
|
(7,880,000
|
)
|
(52,529,000
|
)
|
||||
Net
sales
|
$
|
64,154,000
|
$
|
35,044,000
|
$
|
99,198,000
|
||||
Property,
plant and equipment
|
$
|
51,582,000
|
$
|
11,423,000
|
$
|
63,005,000
|
||||
Assets
|
$
|
135,414,000
|
$
|
50,966,000
|
$
|
186,380,000
|
Percent
of Net Sales
Three
months ended June 30,
|
Percentage
Dollar
Increase
(Decrease)
|
|||||||||
2004
|
2005
|
‘04
to ‘05
|
||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
7.6
|
%
|
||||
Cost
of goods sold
|
(68.0
|
)
|
(65.4
|
)
|
3.5
|
|||||
Gross
profit
|
32.0
|
34.6
|
16.4
|
|||||||
Operating
expenses
|
(15.4
|
)
|
(15.9
|
)
|
11.4
|
|||||
Operating
income
|
16.6
|
18.7
|
21.1
|
|||||||
Interest
expense, net
|
(0.3
|
)
|
(0.2
|
)
|
(45.5
|
)
|
||||
Other
income
|
0.1
|
0.0
|
(50.0
|
)
|
||||||
Income
before taxes and minority interest
|
16.4
|
18.5
|
22.1
|
|||||||
Income
tax benefit (provision)
|
(3.0
|
)
|
(2.9
|
)
|
5.6
|
|||||
Income
before minority interest
|
13.4
|
15.6
|
25.8
|
|||||||
Minority
interest
|
(0.4
|
)
|
(0.5
|
)
|
45.8
|
|||||
Net
income
|
13.0
|
15.1
|
25.2
|
2004
|
2005
|
||||||
Net
Sales
|
$
|
47,017,000
|
$
|
50,598,000
|
2004
|
2005
|
||||||
Cost
of Goods Sold
|
$
|
31,989,000
|
$
|
33,101,000
|
|||
Gross
Profit
|
$
|
15,028,000
|
$
|
17,497,000
|
|||
Gross
Profit Margin Percentage
|
32.0
|
%
|
34.6
|
%
|
2004
|
2005
|
||||||
Total
Operating Expenses
|
$
|
7,224,000
|
$
|
8,046,000
|
2004
|
2005
|
||||||
Net
Interest Expense
|
$
|
(145,000
|
)
|
$
|
(79,000
|
)
|
2004
|
2005
|
||||||
Other
Income
|
$
|
24,000
|
$
|
12,000
|
2004
|
2005
|
||||||
Income
Tax Provision
|
$
|
1,383,000
|
$
|
1,461,000
|
2004
|
2005
|
||||||
Minority
Interest in Joint Venture
|
$
|
177,000
|
$
|
258,000
|
Percent
of Net Sales
Six
months ended June 30,
|
Percentage
Dollar
Increase
(Decrease)
|
|||||||||
2004
|
2005
|
‘04
to ‘05
|
||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
12.2
|
%
|
||||
Cost
of goods sold
|
(68.6
|
)
|
(65.6
|
)
|
7.3
|
|||||
Gross
profit
|
31.4
|
34.4
|
22.7
|
|||||||
Operating
expenses
|
(15.2
|
)
|
(15.7
|
)
|
15.2
|
|||||
Operating
income
|
16.2
|
18.7
|
29.9
|
|||||||
Interest
expense, net
|
(0.4
|
)
|
(0.2
|
)
|
(28.4
|
)
|
||||
Other
expense
|
(0.1
|
)
|
0.0
|
(83.1
|
)
|
|||||
Income
before taxes and minority interest
|
15.7
|
18.5
|
36.3
|
|||||||
Income
tax benefit (provision)
|
(2.9
|
)
|
(2.9
|
)
|
14.2
|
|||||
Income
before minority interest
|
12.8
|
15.6
|
32.2
|
|||||||
Minority
interest
|
(0.4
|
)
|
(0.5
|
)
|
55.8
|
|||||
Net
income
|
12.4
|
15.1
|
35.7
|
2004
|
2005
|
||||||
Net
Sales
|
$
|
88,442,000
|
$
|
99,198,000
|
2004
|
2005
|
||||||
Cost
of Goods Sold
|
$
|
60,664,000
|
$
|
65,105,000
|
|||
Gross
Profit
|
$
|
27,778,000
|
$
|
34,093,000
|
|||
Gross
Profit Margin Percentage
|
31.4
|
%
|
34.4
|
%
|
2004
|
2005
|
||||||
Total
Operating Expenses
|
$
|
13,485,000
|
$
|
15,533,000
|
2004
|
2005
|
||||||
Net
Interest Expense
|
$
|
(327,000
|
)
|
$
|
(234,000
|
)
|
2004
|
2005
|
||||||
Other
Expense
|
$
|
124,000
|
$
|
21,000
|
2004
|
2005
|
||||||
Income
Tax Provision
|
$
|
2,543,000
|
$
|
2,903,000
|
2004
|
2005
|
||||||
Minority
Interest in Joint Venture
|
$
|
319,000
|
$
|
497,000
|
· |
difficulties
associated with owning a manufacturing business, including, but
not
limited to, the maintenance and management of manufacturing facilities,
equipment, employees and inventories and limitations on the flexibility
of
controlling overhead;
|
· |
difficulties
implementing our Enterprise Resource Planning
system;
|
· |
difficulties
expanding our operations in the Far East and developing new operations
in
Europe because of the distance and differing regulatory and cultural
environments;
|
· |
the
need for skills and techniques that are outside our traditional
core
expertise;
|
· |
less
flexibility in shifting manufacturing or supply sources from one
region to
another;
|
· |
even
when independent suppliers offer lower prices, we must continue
to acquire
product from our captive manufacturing facilities, which may result
in
having higher costs than our
competitors;
|
· |
difficulties
developing and implementing a successful research and development
team;
|
· |
difficulties
developing proprietary technology;
and
|
· |
market
acceptance of our proprietary
technology.
|
· |
changes
in, or impositions of, legislative or regulatory requirements,
including
tax laws in the United States and in the countries in which we
manufacture
or sell our products;
|
· |
trade
restrictions, transportation delays, work stoppages, and economic
and
political instability;
|
· |
changes
in import/export regulations, tariffs and freight
rates;
|
· |
difficulties
in collecting receivables and enforcing
contracts;
|
· |
currency
exchange rate fluctuations, including, but not limited to fluctuations
in
the Chinese Yuan should the Chinese government decide to permit
the Yuan
to U.S. dollar exchange rate to
fluctuate;
|
· |
restrictions
on the transfer of funds from foreign subsidiaries to Diodes-North
America; and,
|
· |
longer
customer payment terms.
|
· |
general
economic conditions in the countries where we sell our
products;
|
· |
seasonality
and variability in the computer and communications market and our
other
end markets;
|
· |
the
timing of our and our competitors' new product
introductions;
|
· |
product
obsolescence;
|
· |
the
scheduling, rescheduling and cancellation of large orders by our
customers;
|
· |
the
cyclical nature of demand for our customers'
products;
|
· |
our
ability to develop new process technologies and achieve volume
production
at our fabrication facilities;
|
· |
changes
in manufacturing yields;
|
· |
adverse
movements in exchange rates, interest rates or tax rates;
and
|
· |
the
availability of adequate supply commitments from our outside suppliers
or
subcontractors.
|
· |
use
a significant portion of our available
cash;
|
· |
issue
equity securities, which would dilute current stockholders’ percentage
ownership;
|
· |
incur
substantial debt;
|
· |
incur
or assume contingent liabilities, known or
unknown;
|
· |
incur
amortization expenses related to intangibles;
and
|
· |
incur
large, immediate accounting
write-offs.
|
· |
unexpected
losses of key employees or customers of the acquired
company;
|
· |
bringing
the acquired company's standards, processes, procedures and controls
into
conformance with our operations;
|
· |
coordinating
our new product and process
development;
|
· |
hiring
additional management and other critical
personnel;
|
· |
increasing
the scope, geographic diversity and complexity of our
operations;
|
· |
difficulties
in consolidating facilities and transferring processes and
know-how;
|
· |
diversion
of management's attention from other business concerns;
and
|
· |
adverse
effects on existing business relationships with
customers.
|
C.H.
Chen,
Director
|
For:
Withheld:
|
9,405,805
3,907,385
|
|
Michael
R. Giordano,
Director
|
For:
Withheld:
|
8,981,855
4,331,335
|
|
Keh-Shew
Lu,
Director
|
For:
Withheld:
|
12,524,632
788,558
|
|
M.K.
Lu,
Director
|
For:
Withheld:
|
9,577,458
3,735,732
|
|
Shing
Mao,
Director
|
For:
Withheld:
|
12,686,607
626,583
|
|
Raymond
Soong,
Director
|
For:
Withheld:
|
9,550,798
3,762,392
|
|
John
M. Stich,
Director
|
For:
Withheld:
|
12,562,965
750,225
|
Exhibit 11 | Computation of Earnings Per Share |
Exhibit 31.1 | Certification Pursuant to Section 302of the Sarbanes-Oxley Act of 2002 |
Exhibit 31.2 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
Exhibit
32.1
|
Certification
Pursuant to 18 U.S.C. 1350 Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
Exhibit
32.2
|
Certification
Pursuant to 18 U.S.C. 1350 Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
2004
|
2005
|
2004
|
2005
|
||||||||||
BASIC
|
|||||||||||||
Weighted
average number of common shares
outstanding used in computing basic
earnings per share
|
13,265,146
|
14,418,819
|
13,180,992
|
14,318,916
|
|||||||||
Net
income
|
$
|
6,123,000
|
$
|
7,665,000
|
$
|
10,980,000
|
$
|
14,905,000
|
|||||
Basic
earnings per share
|
$
|
0.46
|
$
|
0.53
|
$
|
0.83
|
$
|
1.04
|
|||||
DILUTED
|
|||||||||||||
Weighted
average number of common shares
outstanding used in computing basic
earnings per share
|
13,265,146
|
14,418,819
|
13,180,992
|
14,318,916
|
|||||||||
Assumed
exercise of stock options
|
2,064,614
|
1,790,832
|
2,125,097
|
1,752,507
|
|||||||||
15,329,760
|
16,209,651
|
15,306,089
|
16,071,423
|
||||||||||
Net
income
|
$
|
6,123,000
|
$
|
7,665,000
|
$
|
10,980,000
|
$
|
14,905,000
|
|||||
Diluted
earnings per share
|
$
|
0.40
|
$
|
0.47
|
$
|
0.72
|
$
|
0.93
|