SEC Filing | Diodes Incorporated

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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

October 26, 2005

Date of Report (Date of earliest event reported)

DIODES INCORPORATED

(Exact name of registrant as specified in its charter)

Delaware	1-5740	95-2039518
(State or other	(Commission File Number)	(I.R.S. Employer
jurisdiction of incorporation)		Identification Number)

3050 East Hillcrest Drive
Westlake Village, California	91362
(Address of principal executive offices)	(Zip Code)

(805) 446-4800

(Registrant's telephone number, including area code)

Item 2.02 Results of Operations and Financial Condition

On October 26, 2005, Diodes Incorporated issued a press release announcing third quarter 2005 earnings. A copy of the press release is attached as Exhibit 99.1.

On October 26, 2005, Diodes Incorporated hosted a conference call to discuss its third quarter 2005 results. A copy of the transcript is attached as Exhibit 99.2.

During the conference call on October 26, 2005, Dr. Keh-Shew Lu, President and CEO of Diodes Incorporated, as well as Carl C. Wertz, Chief Financial Officer, and Mark King, Sr. Vice President of Sales and Marketing made additional comments during a question and answer session. A copy of the transcript is attached as Exhibit 99.3.

The information in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1984, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

Exhibit 99.1 - Press Release dated October 26, 2005

Exhibit 99.2 - Conference call transcript dated October 26, 2005

Exhibit 99.3 - Question and answer transcript dated October 26, 2005

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: October 27, 2005	DIODES INCORPORATED

	By:	/s/ Carl C. Wertz
		CARL C. WERTZ
		Chief Financial Officer

EXHIBIT INDEX

Exhibit Description

Number

99.1	Press Release dated October 26, 2005
99.2	Conference call transcript dated October 26, 2005
99.3	Question and answer transcript dated October 26, 2005

FOR IMMEDIATE RELEASE

Diodes Incorporated Reports Third Quarter 2005 Earnings

· Record quarterly revenues of $54.2 million, up 9.8%

· Record quarterly earnings of $8.4 million, up 15.8%

Westlake Village, California, October 26, 2005 - Diodes Incorporated (Nasdaq: DIOD), a leading manufacturer and supplier of high-quality discrete semiconductors, today reported record financial results for the third quarter ended September 30, 2005.

Third Quarter Highlights:

Ø	Revenue increased 9.8% year-over-year and 7.1% sequentially to a record $54.2 million

Ø	Gross margin improved almost 100 basis points to 34.8% year-over-year

Ø	Operating income increased 7.5% year-over-year to 10.4 million

Ø	Net income increased 15.8% to a record $8.4 million, or $0.51 per diluted share, up from $7.2 million, or $0.47 per diluted share, in 3Q04

Ø	Completed follow-on offering of 1.75 million primary shares, raising approximately $60 million

Ø	Hired additional resources to support standard linear analog strategy

Ø	Initiated packaging development for analog circuit production at Shanghai facility

Revenues for the third quarter of 2005 were a record $54.2 million, an increase of 9.8% from the third quarter of 2004, and a sequential increase of 7.1%. Net income for the quarter increased 15.8% to a record $8.4 million, compared to $7.2 million for the three months ended September 30, 2004. Diluted earnings per share were $0.51 for the third quarter of 2005, compared with $0.47 for the third quarter of 2004.

Revenues for the first nine months of 2005 increased 11.3% to $153.4 million, compared to $137.8 million in the same period a year ago. Net income for the first nine months of 2005 increased 28% to $23.3 million, compared to $18.2 million in the same period last year. Diluted earnings per share were $1.43 for the first nine months of 2005, compared to $1.18 for the same period last year.

Gross profit for the third quarter of 2005 increased to $18.9 million, or 34.8% of sales, compared to $16.7 million, or 33.9%, in the third quarter of 2004, and $17.5 million, or 34.6% of sales in the second quarter of 2005. The improvements in gross margin were due to the positive contribution of higher-margin new products, a favorable product mix, and efficient utilization of manufacturing capacity.

Commenting on the quarter, Dr. Keh-Shew Lu, President and CEO of Diodes Incorporated, said: “For the third quarter, Diodes continued to outperform the discrete semiconductor market with record quarterly revenues and profitability. Our margins were slightly improved from the prior quarter’s performance and continue to be supported by strong demand for our next-generation subminiature devices and arrays. After completing a highly successful follow-on offering of our common shares, Diodes now has the additional financial strength to support our strategic growth initiatives. We continue to grow our market share in key end-user markets by expanding our distribution channels, developing new, innovative products, and further streamlining and optimizing our packaging and other manufacturing capabilities. We generated $40.8 million in operating cash flow during the first nine months of 2005, providing us with a very strong balance sheet to support our growth in adjacent markets, such as analog and mixed-signal products.”

“Our long-term strategic vision is to achieve sustained profitable growth by leveraging our innovative discrete component technology to take advantage of adjacent product opportunities, including the standard linear analog and mixed signal technologies. During the third quarter, we made a number of important hires and began preparing our Shanghai facility to produce analog circuits. We expect to be in production with our first analog devices in the first-half of 2006. We also believe that our greater focus on higher-margin products and more efficient utilization of packaging technology will enable us to expand our addressable markets and enhance profitability over time.”

End-Markets

“Robust customer demand for our innovative space and power-saving subminiature devices continued in the third quarter 2005, particularly for notebook computers and digital audio players. Revenue growth for the quarter was led by the computer and consumer electronics segments, which contributed 36% and 34% of total sales, respectively,” noted Mark King, Sr. Vice President of Sales and Marketing.

“Our market share reached a new, all-time high in the quarter, led by healthy sales in Asia, which contributed 67% of our third quarter revenues. Market demand in North America was relatively steady from last quarter, with sales representing approximately 30% of total revenues. Also, while relatively soft market demand in Europe persists, our revenue there was in line with last quarter at 2.7% of total revenues, as we continue expanding Diodes’ market position by penetrating new accounts and further leveraging our new distributor partnerships in the region,” stated Mr. King.

Design Wins & New Products

At the beginning of the third quarter, Diodes launched a new platform of application-specific array products, including relay driver and voltage regulation devices. Diodes expanded the company’s PowerDI™123 product group by introducing new lines of TVS (DFLT5VO-DFLT 51A), Standard rectifier (DFLR1200-DFLR1400), and two Schottky devices. Diodes enhanced its PowerDI™5 product line with five new Schottky devices. Diodes also launched Electrostatic Discharge (ESD)-protected Small Signal MOSFETs in six different packages in both single element and array designs. The Company also received its first design win for its new voltage regulation circuit in a DC fan application.

“New product revenues were primarily led by the SOD523 product line, array products in various packaging platforms and the PowerDI™123 offerings,” Mr. King noted. “We continued securing important design wins in our array product lines and our PowerDI™123 and PowerDI™5 platforms, which positions us well as the next-generation of digital audio players and notebooks goes into mass production in the fourth-quarter of this year.”

Additional Financial Highlights

For the quarter, SG&A expenses were $7.6 million, or 14.0% of sales, as compared to $6.2 million, or 12.5% of sales, in the comparable quarter last year. The increase was primarily attributable to non-cash expenses related to stock grants made in connection with the strengthening of Diodes’ senior management team.

Research and development expenses were $938,000, or 1.7% of revenue, compared to $942,000, or 1.9% of sales, in the third quarter of 2004.

Operating income for the third quarter increased 7.5% to $10.4 million, or 19.1% of sales, compared to $9.6 million, or 19.5% of sales, for the third quarter of 2004.

Capital expenditures for the current quarter were $6.0 million and $16.3 million year to date. Depreciation expense for the quarter was $4.1 million and $11.9 million year to date.

At September 30, 2005, Diodes had $104.2 million in cash, $135.4 million in working capital, $14 million in debt and unused and available credit facilities of $41.7 million. For the first nine months of 2005, shareholder equity increased 80.1% to $202 million.

In October, Diodes sold 375,000 over-allotment shares as part of the follow-on offering, raising an additional $12 million.

EBITDA for the three months ended September 30, 2005 was $14.2 million, representing an increase of $1.3 million, or 10.1%, from EBITDA of $12.9 million for the three months ended September 30, 2004, an increase of $1.1 million, or 8.4%, from EBITDA of $13.1 million for the second quarter of 2005. EBITDA for the nine months ended September 30, 2005 was $40.1 million, representing an increase of $7.2 million, or 21.9%, from EBITDA of $32.9 million for the same period of last year. A reconciliation of this non-GAAP financial measure to the Company’s net income is set out in the attached schedule.

Business Outlook

“As we continue to outperform the discrete semiconductor market, our book-to-bill is above one, and we expect a 1-4% sequential revenue growth with comparable gross margins for the fourth quarter of 2005,” stated Dr. Lu. “In addition, with solid demand and our China facilities operating at capacity, combined with packaging development initiatives for analog production, we are increasing our full-year capital expenditure forecast from $15 to $18 million to $20 to $23 million. In regards to our analog initiatives, we anticipate announcing product in the first half of next year with a measurable level of revenue generation from these products occurring in the second half of 2006. We believe that Diodes is well positioned to execute within this timeline, given our allocation of additional resources to the analog strategy and the installation of a packaging capability for analog circuit production at our China facility.”

Conference Call

Diodes Incorporated will hold its third quarter conference call for all interested persons at 2 p.m. Pacific Time (5 p.m. Eastern Time) today to discuss its results. This conference call will be broadcast live over the Internet and can be accessed by all interested parties on the investor section of Diodes’ website at www.diodes.com. To listen to the live call, please go to the Investor section of Diodes website and click on the Conference Call link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Diodes website for 60 days.

About Diodes Incorporated

Diodes Incorporated (Nasdaq: DIOD) is a leading manufacturer and supplier of high-quality discrete semiconductor products, primarily to the communications, computing, industrial, consumer electronics and automotive markets. The Company operates four Far East subsidiaries, Diodes-China (QS-9000 and ISO-14001 certified) in Shanghai, our newest manufacturing facility in China, Diodes-Shanghai, Diodes-Taiwan (ISO-9000 certified) in Taipei, and Diodes-Hong Kong. Diodes-China and Diodes-Shanghai manufacturing focus are on subminiature surface-mount devices destined for wireless devices, notebook, flat panel display, digital camera, mobile handset, set-top box, DC to DC conversion, and automotive applications, among others. Diodes-Taiwan is our Asia-Pacific sales, logistics and distribution center. Diodes-Hong Kong covers sales, warehouse and logistics functions. The Company’s 5” wafer foundry, Diodes-FabTech (QS-9000 certified), specializes in Schottky products and is located just outside Kansas City, Missouri. The Company’s ISO-9001:2000 corporate sales, marketing, engineering and logistics headquarters is located in Southern California. For further information, including SEC filings, visit the Company’s website at http://www.diodes.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above 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, including, but not limited to, any forecast of revenues or gross margin. Potential risks and uncertainties include, but are not limited to, such factors as fluctuations in product demand, the 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, risks of foreign operations, and other information detailed from time to time in the Company's filings with the United States Securities and Exchange Commission.

Source: Diodes Incorporated

CONTACT: Carl Wertz, Chief Financial Officer, Diodes Incorporated (805) 446-4800

e-mail: carl_wertz@diodes.com

Crocker Coulson, President, CCG Investor Relations,

(310) 231-8600, Ext. 103, e-mail: crocker.coulson@ccgir.com

Recent news releases, annual reports, and SEC filings are available at the Company’s website: http://www.diodes.com. Written requests may be sent directly to the Company, or they may be e-mailed to: diodes-fin@diodes.com.

CONSOLIDATED CONDENSED INCOME STATEMENT and BALANCE SHEET FOLLOWS

###

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2004			2005			2004			2005

Net sales	$	49,353,000		$	54,200,000		$	137,795,000		$	153,398,000
Cost of goods sold		32,607,000			35,323,000			93,271,000			100,428,000

Gross profit		16,746,000			18,877,000			44,524,000			52,970,000

Selling, general and administrative expenses		6,171,000			7,581,000			18,079,000			21,469,000
Research and development expenses		942,000			938,000			2,505,000			2,688,000
Loss (gain) on sale of fixed assets		(1,000	)		--			14,000			(105,000	)
Total operating expenses		7,112,000			8,519,000			20,598,000			24,052,000

Income from operations		9,634,000			10,358,000			23,926,000			28,918,000

Other income (expense)
Interest income		3,000			23,000			13,000			66,000
Interest expense		(163,000	)		(188,000	)		(500,000	)		(465,000	)
Other		91,000			116,000			(33,000	)		95,000
		(69,000	)		(49,000	)		(520,000	)		(304,000	)

Income before income taxes and minority interest		9,565,000			10,309,000			23,406,000			28,614,000
Income tax provision		(2,134,000	)		(1,621,000	)		(4,678,000	)		(4,523,000	)

Income before minority interest		7,431,000			8,688,000			18,728,000			24,091,000

Minority interest in joint venture earnings		(189,000	)		(305,000	)		(507,000	)		(802,000	)

Net income	$	7,242,000		$	8,383,000		$	18,221,000		$	23,289,000

Earnings per share
Basic	$	0.54		$	0.57		$	1.38		$	1.61
Diluted	$	0.47		$	0.51		$	1.18		$	1.43

Number of shares used in computation
Basic		13,355,775			14,673,490			13,239,681			14,439,242
Diluted		15,367,449			16,487,676			15,391,103			16,229,863

The accompanying notes are an integral part of these financial statements.

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEET

ASSETS

	December 31,		September 30,
	2004		2005
			(Unaudited)
CURRENT ASSETS
Cash and equivalents	$	18,970,000	$	74,213,000
Short-term investments		--		30,002,000
Total cash and short-term investments		18,970,000		104,215,000

Accounts receivable
Customers		38,682,000		44,112,000
Related parties		5,526,000		5,282,000
		44,208,000		49,394,000
Less: Allowance for doubtful receivables		432,000		475,000
		43,776,000		48,919,000

Inventories		22,238,000		26,420,000
Deferred income taxes, current		2,453,000		2,434,000
Prepaid expenses and other current assets		4,243,000		4,373,000
Prepaid income taxes		406,000		1,397,000

Total current assets		92,086,000		187,758,000

PROPERTY, PLANT AND EQUIPMENT, at cost, net
of accumulated depreciation and amortization		60,857,000		64,880,000

DEFERRED INCOME TAXES, non-current		7,970,000		6,459,000

OTHER ASSETS
Goodwill		5,090,000		5,090,000
Other		1,798,000		380,000

TOTAL ASSETS	$	167,801,000	$	264,567,000

The accompanying notes are an integral part of these financial statements.

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEET

LIABILITIES AND STOCKHOLDERS’ EQUITY

	December 31,			September 30,
	2004			2005
				(Unaudited)
CURRENT LIABILITIES
Line of credit	$	6,167,000		$	--
Accounts payable
Trade		17,274,000			21,467,000
Related parties		3,936,000			7,428,000
Accrued liabilities		11,459,000			14,038,000
Current portion of long-term debt
Related party		2,500,000			1,875,000
Other		1,014,000			7,395,000
Current portion of capital lease obligations		165,000			137,000
Total current liabilities		42,515,000			52,340,000

LONG-TERM DEBT, net of current portion
Related party		1,250,000			--
Other		6,583,000			4,711,000

CAPITAL LEASE OBLIGATIONS, net of current portion		2,172,000			1,648,000

MINORITY INTEREST IN JOINT VENTURE		3,133,000			3,935,000

STOCKHOLDERS’ EQUITY
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 18,032,382
shares issued at December 31, 2004
and September 30, 2005, respectively		10,509,000			12,022,000
Additional paid-in capital		21,516,000			87,720,000
Retained earnings		81,330,000			104,619,000
		113,355,000			204,361,000
Less:
Treasury stock - 1,613,508 shares of common stock, at cost		1,782,000			1,782,000
Accumulated other comprehensive gain		(575,000	)		646,000
		1,207,000			2,428,000

Total stockholders’ equity		112,148,000			201,933,000

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	167,801,000		$	264,567,000

The accompanying notes are an integral part of these financial statements.

DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED RECONCILIATION OF NET INCOME TO EBITDA

EBITDA represents earnings before net interest expense, income tax provision, depreciation and amortization. Our management believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in evaluating companies in our industry. In addition, our management believes that EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of EBITDA generally eliminates the effects of financing and income taxes and the accounting effects of capital spending, which items may vary for different companies for reasons unrelated to overall operating performance. As a result, our management uses EBITDA as a measure to evaluate the performance of our business. However, EBITDA is not a recognized measurement under generally accepted accounting principles, or GAAP, and when analyzing our operating performance, investors should use EBITDA in addition to, and not as an alternative for, income from operations and net income, each as determined in accordance with GAAP. Because not all companies use identical calculations, our presentation of EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, EBITDA is not intended to be a measure of free cash flow for our management’s discretionary use, as it does not consider certain cash requirements such as a tax and debt service payments.

The following table provides a reconciliation of Net Income to EBITDA:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2004		2005		2004		2005

Net Income	$	7,242	$	8,383	$	18,221	$	23,289
Plus:
Interest expense, net		160		165		487		399
Income tax provision		2,134		1,621		4,677		4,524
Depreciation and amortization		3,395		4,061		9,542		11,874

EBITDA	$	12,931	$	14,230	$	32,927	$	40,086

The accompanying notes are an integral part of these financial statements.

Exhibit 99.2

Diodes Third Quarter 2005 Conference Call

Participants: Dr. Keh-Shew Lu, Carl Wertz & Mark King

Introduction: Crocker Coulson, CCG

Good morning and welcome to Diodes’ third quarter 2005 earnings conference call.

With us today are Diodes’ President and CEO, Dr. Keh-Shew Lu, Chief Financial Officer, Carl Wertz, and Mark King, VP of Sales and Marketing.

Before I turn the call over to them, I want to remind our listeners that in this call management’s prepared remarks contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions.

Therefore, the Company claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the Company’s filings with the Securities & Exchange Commission.

In addition, any projections as to the Company’s future performance represent management’s estimates as of October 26, 2005. Diodes assumes no obligation to update these projections in the future as market conditions change.

For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 60 days at the investor relations section of Diodes’ website at www.diodes.com.

And now I’d like to turn the call over Diodes’ President and CEO, Dr. Keh-Shew Lu.

Dr. Keh-Shew Lu, President & CEO of Diodes

Welcome everyone, and thanks for joining us on the call today. I particularly want to welcome the new shareholders that participated in our recent follow-on offering. We appreciate your interest and will do everything we can to keep our investors informed about Diodes performance, strategy for growth and business outlook.

I am pleased to report another very strong set of results for the third quarter of 2005. Diodes is positioned in the right markets and continues to grow our share with a broad OEM customer base. Our new products and design wins continue to fuel our sales momentum and boost our margins.

Here are a few of the highlights of our 3^rd quarter results:

·	Revenues increased 9.8% year-over-year to a record $54.2 million,

·	New product revenue was strong at 15.2% of total sales,

·	Gross margin improved 90 basis points to 34.8% from 3Q04,

·	And we reported net income of $8.4 million, or $0.51 per share, up from $7.2 million, or $0.47 per share, in 3Q04.

These results reflect the strength of our business model that delivers profitable growth to our shareholders, while continuing to gain share in our addressable market and build strong customer relationships.

During the first nine months of 2005, Diodes generated $41 million in cash flow from operations. And on September 22, we closed on a successful secondary offering of 1.75 million shares of our common stock, which generated net proceeds to the Company of approximately $60 million.

As of September 30^th, 2005, we have $104 million in cash and investments, shareholders equity of $202 million, and a $42 million available line of credit. This very strong financial position provides Diodes with the ability to aggressively pursue our corporate growth initiatives.

When I joined the Company in June, we announced that as part of our long-term growth plans Diodes would expand our product range into adjacent technologies, including analog and mixed signal devices. This strategy is a natural evolution for Diodes and builds on our highly efficient, scalable manufacturing capabilities and our strong and diverse OEM customer base. We believe the move into adjacent technologies will enable us to significantly expand our addressable market, deliver greater value to our customers, and enhance our margins - realizing our vision of profitable growth.

I am pleased to say that we are already making tangible progress in realizing this vision.

We have made several new hires - including a Global New Product Manager and a Product Engineering Manager - who bring us decades of experience in analog and mixed signal devices at leading global semiconductor companies.

We have developed our initial product road map and identified a number of product areas where we see a defined need from our existing customers and a good fit with our existing strengths in packaging and applications engineering.

We are gearing up to produce new packages at our Diodes-China facility that will be suitable for these standard analog devices. These include the SO-8, or small outline 8-pin package, and our SOT-223 package, which builds on our popular PowerDI packaging.

And we are actively evaluating a number of strategic acquisition opportunities that offer Diodes substantial intellectual property and proven standard analog products so as to accelerate the introduction of new analog and mixed signal devices.

While it is not possible to predict the outcome of these efforts, we are seeing a number of compelling candidates and expect to have something to announce in the quarters to come.

We would expect to launch our first analog devices during the first half of 2006, and to begin to recognize meaningful revenues from these products in the second half of next year.

Our plan is to begin with introducing standard analog devices, and then to leverage our strength in Application Specific Multi-Chip Circuits to drive a range of products that combine discrete, analog and logic devices in a single package.

We see a broad range of opportunities in which circuit integration at the packaging level can deliver space, power and design efficiencies to our customers - in effect lowering their cost while at the same time enhancing our margins. We have proven this concept with our discrete array products, and believe the market potential is very substantial. By 2007, we expect to be launching our multi-chip analog and mixed signal devices.

So what is our strategy for growth?

First, we will continue to aggressively introduce new products and platforms in both discrete and analog technologies. Rapid introduction of new and proprietary products has enabled Diodes to secure our customer relationships, expand our addressable markets, and enhance our margin performance.

Second, we will leverage our strength in next-generation, flexible packaging and insight into customer design requirements to drive multi-chip devices that deliver even greater value to our customers.

Third, we will continue to distinguish ourselves through our intense customer service.

Fourth, we will continue to expand our manufacturing capacity to accommodate customer demand and gain scale benefits. We currently have the capacity to turn out over 9 Billion units per year, and have increased our capital investment plan to bring additional capacity on line by year end.

And finally, we are pursuing strategic acquisitions that can accelerate our growth strategy and where we can realize efficiencies by capitalizing on Diodes world-class manufacturing and blue-chip global customer base.

We are very pleased to have recently been named #26 on Forbes magazine’s list of 200 Best Small Companies, up from number 100 in the prior year. This recognition was based on the outstanding record of growth and profitability Diodes has achieved over the past five years. And we are very excited about the potential to sustain that pattern of exceptional performance as we execute the growth strategy I have outlined.

Now I’d like to turn it over to Carl for a more detailed discussion of the financials for the quarter.

3Q05 Financials: Carl Wertz

Thanks, Dr. Lu, and hello everyone.

We feel very positive about our solid third quarter results, which were accomplished despite continuing softness in the global demand for discrete devices. We continue to align ourselves with the most attractive growth regions and equipment categories. Also, our disciplined fiscal plan enables the Company to manage costs and expenses effectively to serve our customers’ rapidly changing needs with innovative, high-margin products. This approach has provided us with consistent quarterly earnings growth.

The Company’s results for the third quarter included:

·	Revenues were a record $54.2 million, an increase of 9.8% from the third quarter of 2004, and a sequential increase of 7.1%.

Gross margin advanced 90 basis points to 34.8% year-over-year, compared to 33.9% in the third quarter of 2004, and 34.6% in the second quarter of 2005. The improvements in gross margin were the result of the positive contribution of higher-margin new products, a favorable product mix, and efficient utilization of manufacturing capacity.

Selling, General & Administrative expenses for the quarter were $7.6 million, or 14.0% of sales, as compared to $6.2 million, or 12.5% of sales, in the comparable quarter last year. The increase was primarily attributable to non-cash expenses related to share grants made in connection with the strengthening of Diodes’ senior management team. These 220,000 shares will continue to be expensed quarterly based upon Diodes’ stock price over the required four-year vesting period.

Research and development spending was $938,000, or 1.7% of revenue, compared to $942,000, or 1.9% of sales, in the third quarter of 2004. We expect that that Diodes’ R&D expense should reach 2 to 3% of sales, as the Company advances into the analog and mixed signal segments. Given the robust market demand we see for our new, higher-margin products, we believe that the potential return on investment of this higher R&D investment is justified and, in fact, essential for Diodes’ future growth and overall profitability.

·	Operating income increased 7.5% to $10.4 million, or 19.1% of sales, compared to $9.6 million, or 19.5% of sales, for the third quarter of 2004.

Capital expenditures were $6 million and $16.3 million year to date. Depreciation expense for the quarter was $4.1 million and $11.9 million year to date. With our Diodes-China facility running at capacity, we have already begun making investments in new packages that will support the first lines of standard analog devices. As a result, we are raising our annual cap ex forecast from $15 to $18 million to $20 to $23 million for 2005. This larger budget level will equip us with sufficient resources to increase production of higher-margin products, and be able to satisfy current and anticipated customer requirements.

·	EBITDA for the quarter was $14.2 million, compared to $12.9 million in the year-ago quarter.

We recognized $1.6 million in income taxes for the third quarter, for an effective tax rate of 15.7%, as compared to 22.3% in the third quarter of 2004. We continuously seek to take advantage of all available strategies that optimize our tax rate for every jurisdiction in which we operate. As we mentioned in our second quarter earnings call, we were analyzing the benefits afforded under the American Jobs Creation Act and now expect to increase the foreign dividend repatriation from $8 million announced last year to a total of $20 to $24 million, to take advantage of the 85% tax credit.

Net income for the third quarter increased 15.8% to a record $8.4 million, or $0.51 per diluted share, compared to $7.2 million, or $0.47 per diluted share, for the three months ended September 30, 2004. On a sequential basis, net income grew 9.4% from $7.7 million, or $0.47 per diluted share in Q205.

Shares outstanding properly reflect only a few days of the follow-on shares, with the full impact in 4Q05.

Our balance sheet continues to strengthen with $104 million in cash and short-term investments, $135 million in working capital, $14 million in long-term debt and unused and available credit facilities of $41.6 million. This reflects the contribution of our recent follow-on offering, in which 1,750,000 shares were sold by the Company, resulting in net proceeds to the Company of $60 million.

In October, Diodes sold 375,000 underwriter’s over-allotment shares as part of the follow-on offering, raising an additional $12 million. For the first nine months of 2005, shareholder equity increased 80% to $202 million. Our total debt to assets ratio improved dramatically to 24%, compared with 33% a year ago. Our balance sheet provides Diodes with the flexibility to aggressively pursue strategic corporate initiatives, including acquisitions to support our future growth.

·	Inventories were at $26.4 million, with inventory turns of 5.4 times in the quarter, compared with 6 turns at 2Q05.

·	Day's sales outstanding improved to 81 days in 3Q05, as compared to 85 days in the prior quarter. With our continued sales growth in Asia, we expect longer credit terms.

Outlook

As we continue to outperform the discrete semiconductor market, our book-to-bill is above one, and we expect a 1 to 4% sequential revenue growth with comparable gross margins for the fourth quarter of 2005.

In regards to our analog initiatives, we anticipate delivering actual products to the market by the first half of next year with a meaningful level of revenue from these products generated in the second-half of 2006.

We believe that Diodes is well positioned to execute within this timeline, given our allocation of additional resources to the analog strategy and the installation of a packaging capability for analog circuit production at our China facility. Also, our solid balance sheet and cash flow provide us with the latitude to pursue strategic acquisitions that could further augment our strong organic growth.

I’m now going to turn the discussion over to Mark King, our Senior Vice President of Sales and Marketing.

End Markets, Design Wins & New Products - Mark King

Thanks, Carl and good afternoon everyone.

Diodes posted another successful quarter in expanding our discrete market share by aligning our product development, marketing and sales initiatives with the highest growth end equipment opportunities, such as digital audio players and notebook computers, and by strengthening our solid market position in Asia.

Beginning with New Products

We introduced a total of 64 new part numbers from 6 different product families in the third quarter

We expanded the Company’s PowerDI™123 product group by introducing new lines of Transient Voltage Supressors, Standard rectifier, and two Schottky devices. Diodes enhanced the Company’s PowerDI™5 product line with five new Schottky devices. Diodes also launched a line of ESD-protected Small Signal MOSFETS in six different packages in both single element and array designs.

These new MOSFETs have Built-in Gate-Source Protection rated to exceed 2000V and Low On-Resistance for minimum power dissipation. We are offering them in dual and single configurations in small outline packages, and the devices are uniquely suited for use in Cellular & Cordless Phones, Computers, Voltage Inverters for LCD backlighting, Digital Still Cameras and Portable Electronics.

At the beginning of the third quarter, Diodes also launched a new platform of application-specific array products, including relay drivers, and voltage regulation circuits.

These products extend our multi-chip integration capabilities with arrays that combine multiple functions in a single, smaller, consolidated package. We are very excited about this new platform, which embodies the future direction of our packaging technologies.

Design wins

High interest in our new products translated into strong design win activity during the quarter. We had multiple wins at 53 new or exiting accounts.

As with the previous quarter, design activity for both our small outline package SOD523 and PowerDI123 were very robust, with our PowerDI5 and arrays enjoying continued success with our OEM customers.

Highlights included:

·	PowerDI5 wins in 2 additional notebooks models,

·	PowerDI123 wins in a Bluetooth headset, mobile handset, portable POS terminal, and motherboard ,

·	Multiple array wins in DSC, Portable DVD, wired mobile headset, notebook, motherboard and an automotive sensor,

·	Performance Schottky wins in the automotive and set top box categories,

·	SOD523 wins in digital camera, mobile handset, portable GPS, notebook computer and TFT display, and

·	A first design win for our new voltage regulation circuit in a DC fan.

Also, key design wins that we obtained in the two previous quarters for our PowerDI5, PowerD123, and subminiature array products went into actual production late in third quarter to coincide with the expected mass production of the latest generation digital audio players and notebooks.

Our new product sales were 15.2% of total sales, compared to 15.6% last year. As with last quarter, new product revenues were primarily lead by the SOD523 product line, array products in various packaging platforms and the PowerDI™123 offerings.

Geographic Breakout

Geographically, Asia generated 67.0% of our third quarter revenues, with North America coming in at 30.3%, and Europe contributing approximately 2.7% of total revenues. While overall demand in Europe continues to be slack, our efforts here are beginning to gain traction, as we continue penetrating new accounts and fully leveraging our new distribution partnerships to grow Diodes’ market position in the region.

70% of our sales were to OEM customers during the quarter, with the balance going into distribution channels.

In North America, sales were up slightly in the third quarter, as pricing pressure on commodity products eased some and product lead times remained stable.

Average selling prices for discrete products actually increased slightly from 2Q but were down 14% from last year.

Given the ongoing shift of global electronics production to Asia, historically attractive segments for Diodes, such as set top box and DSL businesses continued to experience less than outstanding demand in the U.S.

Sales for accounts designed in the United States and built in Asia remained brisk, with good overall design activity. Array designs remained very popular, with heightened interest in custom arrays and sustained interest in PowerDI123 and PowerDI5. Distributor inventory edged slightly lower from last quarter and remains at a two-year low.

Wafer selling prices were down 6% sequentially and 24% year-over-year.

In Europe, revenue was up modestly in a flat market. The ongoing trend of outsourcing to Asia continues to accelerate. Also, pricing pressures here remain high, as we push to expand in the market and as product lead times remain short. We continue to make progress in positioning Diodes favorably with OEM customers, while expanding the Company’s presence with our new distributor partnerships there.

For Asia, sales were strong in the quarter, as we continue to gain share. The computer and consumer sectors are driving revenue growth, especially in the digital audio player and notebook computer categories.

Average selling prices were down 2% sequentially and 13% year-over-year.

We maintained our strong market share increases in notebooks during the quarter and expect further gains for Q4. Commodity products’ lead times started to lengthen during the third quarter, and we may see some transitory shortages in Q4. Hence, the pricing for these products began to stabilize late in the third quarter and look relatively firm through the coming quarter.

Summary

In summary, we are pleased with the overall results of our key product development, marketing, and sales initiatives for the third quarter.

We are seeing a healthy level of customer demand for many of our new, higher-margin product offerings, and anticipate similar levels of success going forward.

We also continued to secure key design wins that position us favorably to take advantage of opportunities created as next-generation products go into mass production in the coming quarters.

Based on these factors, we also feel that our marketing and sales channels are well-positioned to support our expansion into adjacent products, such as standard analog and mixed-signal products.

As Dr. Lu outlined, we continue to experience strong momentum in the discrete market and are extremely excited about the opportunities for incremental growth that will open up as we expand the range of products we can bring to new and existing customers.

With that, we will open up the call to your questions. Operator.

Exhibit 99.3

Questions and Answers

Date: 10/26/05

Operator

(OPERATOR INSTRUCTIONS). Rajesh Misra.

Ramesh Misra - - Analyst

Good afternoon, guys and congratulations on another solid quarter. First thing was a little bit of a clarification. I think through Q2 you had previously talked about your Cap-Ex being at about 6.8 million year-to-date. Am I missing something and maybe you could give me the Q1, Q2, Q3 Cap-Ex numbers.

Carl Wertz - Diodes Incorporated - CFO

I think it was a little higher than 6.8 year-to-date. Part of the issue is how we account for it, whether it is on a cash-flow basis or an actual fixed asset. I think what we did the first quarter, maybe the first two quarters, we counted it on a cash-flow basis, where in reality, there's some accounts payable sitting there for us that we weren't subtracting. But in reality, it is currently sitting at 16 million. For now, 10 million year-to-date, second quarter plus the 6 million this quarter.

Ramesh Misra - - Analyst

Now, in terms of the share guidance for Q4, what should we be looking at in that regard?

Carl Wertz - Diodes Incorporated - CFO

I'm sorry. What was the question?

Ramesh Misra - - Analyst

The share count for Q4, should it be basically --?

Carl Wertz - Diodes Incorporated - CFO

The share count? The follow-on offering?

Ramesh Misra - - Analyst

Yes.

Carl Wertz - Diodes Incorporated - CFO

1.75 million plus the 375K overlap. So it will be 2.1 and some change.

Ramesh Misra - - Analyst

So that will be 18.5 then?

Carl Wertz - Diodes Incorporated - CFO

Pretty much, yes. Because we only had it for a few days in the third quarter. So it was only like 60,000 shares affected in the third quarter.

Ramesh Misra - - Analyst

I see. So pretty much the whole thing comes out in Q4. In terms of gross margins, year-over-year, this year your margins are up 90 basis points. Last year, they were up about 800 basis points. Is there some sort of gross margin saturation occurring here?

Carl Wertz - Diodes Incorporated - CFO

Well I think probably a good part of that ramp into '04 was the new products were really kicking in and now we have got that margin dollar for the last two years. So it kind of stabilized that percentage of new product. But we are still squeezing a little bit more utilization, a little bit more of the -- the cost reduction is still a goal for us. Unfortunately, there's a couple of times we're not able to get the exact same cost reduction as the price erosion. It is pretty tough to keep balancing our revenue growth with the gross margin growth and everything else. So it's going to be complex but I believe 2004 was really geared more for the new product introduction from '03.

Mark King - Diodes Incorporated - VP Sales & Marketing

Ramesh, we still continue to believe we can continue to make progress as we continue to move in new products. But as we go up and around the new ones, as we grow at these speeds, the margin will creep up slower.

Ramesh Misra - - Analyst

Got it. Your inventories in the quarter, they jumped up meaningfully. Any particular reasons for that?

Carl Wertz - Diodes Incorporated - CFO

Part of that reason was the Chinese New Year where we ramped up probably north of $1 million to $2 million additional inventory build for the increase in demand and the fact that in China, basically the customs office and transportation pretty much shuts down for the first week in October. That is part of it and then we had a little bit of inventory build over in Taiwan for some distribution areas. But we do expect to get that back down to a six times turns by the end of the year.

Ramesh Misra - - Analyst

I presume you meant the Golden Week holidays?

Carl Wertz - Diodes Incorporated - CFO

Right. Yes. Yes.

Ramesh Misra - - Analyst

Dr. Lu would not be happy with --.

Dr. Keh-Shew Lu - Diodes Incorporated - President & CEO

You know that is the way because everywhere is shutting down but our capacities are full so we cannot really afford to shut a facility down for a whole week. That is why we start the material earlier and get the (indiscernible) in earlier.

Mark King - Diodes Incorporated - VP Sales & Marketing

We also had a couple of new hubs we put in place or customer inventory for some strong specific ramps, so there was some extra inventory in that area to support our growth.

Ramesh Misra - - Analyst

Okay, thanks very much.

Carl Wertz - Diodes Incorporated - CFO

One thing on the stock number of options -- or not options, the stock going out additional two million shares, we're also going to be able to record a substantial amount of interest income as you are aware. That is going be north of probably $500,000.

Ramesh Misra - - Analyst

Right. Thanks very much.

Operator

Alex Guana.

Alex Guana - - Analyst

Carl, I believe you mentioned the overlying softness in general for discretes in the marketplace. I was wondering if you could walk through specifically by end market and characterize some of the dynamics at play; computing, consumer, industrial, communication and let us know where you have perhaps more and less visibility.

Carl Wertz - Diodes Incorporated - CFO

Let me pass that one over to Mark. He has got a little bit more of a background than I do on that.

Mark King - Diodes Incorporated - VP Sales & Marketing

From an overall standpoint, depending on whose numbers you're looking at, the discrete area is relatively flat for the whole year. Some people are up slightly, some people are down and actually, we have seen some numbers that show it as much as down 4%. Clearly, in these recent quarters, the computer and the consumer market are driving any growth that is out there. I think if you look at the general industrial and communications areas, they are relatively stagnant in this area. So I think that we are relatively well-positioned and I think that is what's showing our growth in those higher volume and better performing

segments of consumer and computer.

Carl Wertz - Diodes Incorporated - CFO

That is one of the things that we've done for the past several years is we target those higher growth areas and go after them.

That is what Mark is saying. We have definitely taken some share there.

Alex Guana - - Analyst

I know you have been taking share and intend to keep taking share. If you look at those end markets for the first half of next year which ones do you suspect will be your key contributors to potential growth and then if I look beyond as your analog product lines kick in, where do you think the key drivers are? Will they be consistent with your current positioning or does that open up new market opportunities?

Mark King - Diodes Incorporated - VP Sales & Marketing

I think our strategy is pretty consistent and I don't think it is going to change dramatically in the next two quarters. A key part of our analog and mixed signal strategy is to add new products to our present customers and our present end equipment. So we are going to be very targeted in developing products that we can sell into our present customer base and into the present markets and end and equipment that we focus on. So we're definitely not going to change our strategy a bit or change our customer strategy, our target customer or our target market to move into those markets.

Alex Guana - - Analyst

Fair enough.

Dr. Keh-Shew Lu - Diodes Incorporated - President & CEO

Remember, you remember at the end of the road show, we talked about adjacent technology. We are talking about the same customer set and the same application and then just pull through our spend (ph) at the end of the quarter when we come out together with our discrete component.

Alex Guana - - Analyst

Can you describe perhaps the amount of turns business you did in the September quarter, those orders booked and shipped within the same quarter and what percentage, more or less, you expect to achieve to hit your December quarter guidance?

Mark King - Diodes Incorporated - VP Sales & Marketing

Yes. We don't have the specific data in front of us but generally we have been going into the quarter with about 50% of backlog for the quarter and that is firm orders and that doesn't take into consideration forecast orders that aren't firm. So I'd say it was probably pretty consistent. I think it has run pretty consistent for a long period of time. We did have, as Carl mentioned, our book-to-bill was above one and so we had a good position (indiscernible). So maybe a slight inventory build -- excuse me, a slight backlog build during the quarter.

Alex Guana - - Analyst

Last question if I could, do you have any visibility in terms of your forward guidance and even thinking into the first half of next year about the percentage of revenues you expect to be contributed by new products? Will that be trending up from here, remain about level? What is your current outlook?

Carl Wertz - Diodes Incorporated - CFO

Alex, I think basically we're holding in at that, probably going to trend pretty close to where we are now, between the 15, 16% range. Most likely later part of the first half that may be changing but by definition, we're using that three-year life so we have lost some of that as well.

Mark King - Diodes Incorporated - VP Sales & Marketing

We are starting to lose -- categorize new products but not lose revenue in those product sectors. So sometimes that can be leading. Our lifecycles are much longer than some other IC lifecycles. So sometimes it takes as much as 18 months to 2 years for our new product to ramp and then by the time it has ramped to a level that we think is wonderful it has now expired as new product. But the margins and the product revenues remained the same and they are fortifying our overall product mix.

Alex Guana - - Analyst

Thank you very much and congratulations on the solid results.

Mark King - Diodes Incorporated - VP Sales & Marketing

Thank you.

Dr. Keh-Shew Lu - Diodes Incorporated - President & CEO

Thank you.

Operator

Gary Mobley.

Gary Mobley - - Analyst

Mark, I appreciate you giving us some insight into lead-times in specific regions but could you give us your overall lead-time and how they compare to previous quarter?

Mark King - Diodes Incorporated - VP Sales & Marketing

You know I think our utilization is pretty high but we are continuing to add capacity. So I think our lead-times have been relatively stable. Maybe they have pushed out a week and a half for general business. For specific business, we can accomplish anything that is required. We do see, as I mentioned, in Asia, we're starting to see the lowest priced commodity products start to be difficult for the customer base, which has stabilized some of the pricing. But we think that that could be a short-term cycle in that area. So I think general lead-times have remained relatively stable on all but the most commodity devices.

Gary Mobley - - Analyst

With respect to the U.S. pricing environment, many of your competitors are also experiencing some increases. Could you talk about the behaviors of some of those competitors? Have you seen some of these broad-line companies start to deemphasize the discrete lineups and --?

Mark King - Diodes Incorporated - VP Sales & Marketing

I don't think we have seen any really new behavior. I think we have just seen the consistent behavior that we have seen for a couple of years. There is no -- in this quarter, there was no dramatic change in what we have seen. We still see inconsistent pricing structure depending on the strength of their business. And we see a continued lack of interest from the design level and really more of a focus on movement from a commodity base. So we really -- I don't think a tremendous amount has changed in that area.

Operator

Steve Smigie.

Steve Smigie - - Analyst

Congratulations on a good quarter. In terms of the new products, could you give us some sense of what gross margin would have been on those products during the quarter?

Mark King - Diodes Incorporated - VP Sales & Marketing

We really don't specify specifically but generally we've discussed that our new product margins generally run about 2x our standard product margin.

Steve Smigie - - Analyst

And you mentioned you had some new products for some handset applications and I was just wondering is that typical design in time that you just mentioned, 18 months to 2 years, to ramp to that? Would you expect that or do you think that maybe you can get a little quicker on these?

Mark King - Diodes Incorporated - VP Sales & Marketing

I think you put two things together. I think what I said was for new products to ramp to the volumes that we think are substantial revenue sometimes takes 18 months. Clearly a design cycle on a cellular phone is probably less than -- anywhere from three to six months. Okay? Those are generally pretty short design cycles. But most of the products that we are designing into cell phones and we're winning design wins on are then -- they tend to propagate through the next generation of the design. So if we get a new product like, I mentioned, a PowerDI 123 on this generation, hopefully and we believe that that will then propagate to

multiple generations going forward.

Steve Smigie - - Analyst

Great. Could you talk about maybe how many actual handsets you're on currently with designs?

Mark King - Diodes Incorporated - VP Sales & Marketing

You know I don't really have an exact figure because there's a lot of ODM business in Asia and so forth. But I would say many.

Steve Smigie - - Analyst

One last question, just a little bit of SG&A guidance. It's up a little bit sequentially. Would you expect that to be up again sequentially in the fourth quarter and sort of going forward?

Carl Wertz - Diodes Incorporated - CFO

The overall SG&A?

Steve Smigie - - Analyst

Right. It's at 7.6. I was just asking if it's going to be sort of similar on a dollar amount in Q4.

Carl Wertz - Diodes Incorporated - CFO

It will probably trend along with our revenue in our selling expenses. It has been pretty close to 14% consistently, 13.8, 14.2, 14 --, somewhere in that range.

Operator

Art Sharon.

Art Sharon - - Analyst

I am wondering -- regarding the trading in the stock, I noted today that your short position again increased and the latest reporting periods were about 1.4 million shares. Given that I believe you have determined that this is not naked shorting, I am wondering if you have any take on where anybody is able to borrow that much stock. I mean you have got a fairly thin float out there.

Carl Wertz - Diodes Incorporated - CFO

That's a real good question. I don't know how to answer that one, Art. We could look into it.

Art Sharon - - Analyst

Okay. I appreciate it if you would.

Carl Wertz - Diodes Incorporated - CFO

We will do that.

Operator

Alex Guana - - Analyst

Yes, Dr. Lu, I believe you mentioned where you are in terms of capacity and I know there have been a number of reports in terms of -- and it's different markets I realize, but in terms of back-end limitations, front-end, excess capacity, what do you think the dynamic is out there with regard to the discrete space? Are there any dislocations in the current environment that you are able to take advantage of or that you have targeted and are taking advantage of?

Dr. Keh-Shew Lu - Diodes Incorporated - President & CEO

I really don't see anything like this. What we do is we just kick out capacity fully diluted at about 90%. We talk about back-end, packaging capacity. We keep it around -- above 90% fully diluted. Then when we see -- when we see a crunch or a shortage then we spend the capital for it. But fortunately it is a short cycle, lead-time to put the back-end capacity. It's probably somewhere around three to six months very easily. We can quickly react to the market demand and put in the capacity for it. So I really don't see any thing like that.

Alex Guana - - Analyst

And Mark, I believe you specifically mentioned the set-top box space is seeing some softness right now. You know speaking of ability to react, do you have any thoughts or insights into how long softness in that market might endure and do you have any visibility on new opportunities in terms of IPTV set-top boxes?

Mark King - Diodes Incorporated - VP Sales & Marketing

I don't have any specific on IPTV set-top boxes. Our product doesn't change a great deal between the different box types. Maybe there is some slight difference. We just saw some recent shifts, what I was kind of saying is traditional demand in North America that was then now built in Asia. We are seeing some indications of that wavering and some of that maybe coming back to the North American space. The third quarter in set-top box for our customer base seemed to be a little softer than normal.

Alex Guana - - Analyst

I see. So it's universal across some of the other players that sell into that market. So that is why I asked. And then if I could in terms of -- can you maybe update us on your efforts or opportunities within the cell phone space?

Mark King - Diodes Incorporated - VP Sales & Marketing

Actually we continue to make progress in that area. You know we were pretty happy with a couple of design wins we have had this quarter. We continue to expand with some of the smaller European styles. We are doing more. We have made more progress in the Asian ODM, specifically China, and we have had some recent breakthroughs in the Korean space. So it is still not a revenue driver but we see it as a focus for us going forward and a future growth opportunity for us.

Alex Guana - - Analyst

Great. Thank you.

Operator

At this time, there are no further questions.

Crocker Coulson - Diodes Incorporated - President, CCG IR

We would like to thank everyone for joining us on the call this afternoon and look forward to coming back to you early part of next year with our fourth-quarter results. If you have any follow-on questions, feel free to call us offline.

Operator

This concludes today's conference call. You may now disconnect.

Dr. Keh-Shew Lu - Diodes Incorporated - President & CEO

Thank you.

Carl Wertz - Diodes Incorporated - CFO

Goodbye.