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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
June 21, 2016
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) |
(IRS 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 8.01 | Other Events. |
From time to time, Diodes Incorporated (the “Company”) may give corporate presentations to its customers, suppliers and other related interested parties. A copy of the Company’s corporate presentation slides, updated on June 21, 2016, is attached herewith as Exhibit 99.1.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit Number |
Description | |
| 99.1 | Corporate Presentation Slides | |
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: June 21, 2016 | DIODES INCORPORATED | |||||
| By | /s/ Richard D. White | |||||
| RICHARD D. WHITE | ||||||
| Chief Financial Officer | ||||||
Index to Exhibits
| Exhibit Number |
Description | |
| 99.1 | Corporate Presentation Slides | |
 June
2016 Investor Meetings 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. Such forward-looking statements include, but are not limited to, statements regarding update to Diodes Incorporated’s second quarter 2016 business outlook as of February 16, 2016, which includes the following: expect revenue to range between $230 million and $240 million, or up 3.3 to 7.7 percent sequentially; expect GAAP and non-GAAP gross margin to be 31.5 percent, plus or minus 2 percent; non-GAAP operating expenses are expected to be approximately 25 percent of revenue, plus or minus 1 percent; expect interest expense to be approximately 2.5 million; expect income tax rate to be 28 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the second quarter are anticipated to be approximately 49.5 million; purchase accounting adjustments related to Pericom and previous acquisitions of $4.4 million after tax are not included in these non-GAAP estimates; and other statements identified by words such as “estimates,” “expects,” “projects,” “plans,” “will” and similar expressions. Potential risks and uncertainties include, but are not limited to, such factors as: the risk that such expectations may not be met: the risk that the expected benefits of acquisitions may not be realized; 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, higher tax rates 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; breaches of our information technology systems; and other information, including the “Risk Factors,” 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 May 5, 2016 titled, “Diodes Incorporated Reports First Quarter 2016 Financial Results” for detailed information related to the Company’s non-GAAP measures and a reconciliation of GAAP net income to non- GAAP net income. |
 Management Representative
Page 3 Dr. Keh-Shew Lu President and CEO Diodes Incorporated Since 2005 Texas Instruments 27 years
Experience: Senior Vice President of TI Worldwide Analog and Logic 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: MBA with concentration in International Marketing, Texas Tech University BS in Electrical and Computer Engineering, University of Iowa |
 Page
5 A leading global manufacturer and
supplier of high-quality application specific, standard products within the broad discrete, logic and analog markets, serving the
consumer, computing, communications, Industrial and automotive segments.
About Diodes Incorporated |
 Business
Objective To consistently achieve
above-market profitable
growth, utilizing our innovative and
cost-effective packaging
and silicon
technology, suited for high volume,
high growth
markets by leveraging
process expertise and design excellence
to deliver high quality semiconductor products.
Page 6 |
 2015
Total Semiconductor Market ($335 bn) Significant Market
Opportunity Page 7
$140 bn $33 bn $77 bn $45 bn $21 bn Diodes’ SAM: $10 - $12 bn Diodes’ SAM: $14 - $16 bn $19 bn Diodes’ SAM: $1 - $3 bn Opto Discrete Micro/Special Std Logic Analog Memory |
 Diodes
Growth Strategy Page 8
Many Paths for Growth: Product Portfolio Product arena Product line expansion Performance enhancement Application Space Targeted end equipment Broad customer base Increased product coverage Packaging Breadth Broad packaging portfolio Increased power density Small form factor |
 9 Pericom Fits Diodes’ M&A Strategy SYNERGISTIC FACTORS Synergistic with Diodes’ packaging capabilities and capacity Accretive in 1 year Enter new product area Access to new markets / new customers Gain access to process and/or packaging technology Strengthen regional sales potential 2 1 1 1 2 1 Degree of FIT 1=Very synergistic, 2=Synergistic, 3=Fairly Synergistic Page 9 |
 10 A Strong Global Partnership 2014 Revenue $891M 2014 Gross Margin 31.1% High volume Discrete, Analog and Logic products Cost efficient manufacturing capabilities Strong global presence Broad product and customer base 3 C's and industrial with emerging focus on Automotive Broader Analog and added mixed-signal product lines Expanded platform content in applications where Diodes is already strong Operating Synergies Technology presence to advance Diodes product roadmap Customer / application space depth within target markets SYNERGIES + = A Winning Combination 2014 Revenue $130M 2014 Gross Margin 42.3% Switches, Signal Integrity, Connectivity and Timing products Focus on emerging connectivity platforms Deep customer relationships Strong presence in networking and data center with growing automotive position Page 10 |
 Broad
Consolidated Product Offering IntelliFET and SBR are the registered
trademark of Diodes Incorporated and its affiliates. Page 11
Standard Products Diodes Rectifiers Standard Linear Power Management ICs Connectivity Schottky Diodes Schottky Rectifiers Linear Voltage Regulators DC-DC Switching Regulators Switches Zener Diodes Super Barrier Rectifiers Standard Linear Regulators Buck Signal Switches Switching Diodes Standard Rectifiers Quasi Low Dropout Regulators Boost Mux controllers SBR a Diodes Fast Recovery Rectifiers Low Dropout Regulators Buck/Boost/Inverter Power Zener Diodes Bridge Rectifiers Signal Integrity Power Rectifier Diodes Voltage References AC/DC Solutions Repeaters Shunt References Primary-Side Regulators ReDrivers Micropower References PWM BJT Switches Connectivity MOSFETs Protection Devices Current Monitors Voltage PCIe Bridges Small Signal MOSFETs TVS Current Output PCIe Packet Switches Power MOSFETs Low CJ TVS Voltage Output Power Switches UARTs Protected MOSFETs Thyristor Surge Protection Load Switches High Voltage MOSFETS Data Line Protection Operational Amplifiers HDMI Switches Sensors Complementary Pairs Hall Switches H-Bridges Comparators USB Hall Latches IntelliFET a USB Switches Smart Fan Drivers Timing Products Charging control Motor Controllers Clocks Temperature Sensors Timer ICs LED Drivers Magnetic Sensors Bipolar Transistors Function Specific Arrays Crystals Charge Pump Small Signal BJT Relay Drivers Oscillators Boost Digital Broadcast by Satellite Pre-biased BJT Discrete Load Switches Buck Fixed Bias Generators Medium Power BJT Discrete Voltage Regulators Standard Logic ICs Linear LED Drivers Switched Bias Generators High Power BJT MOSFET Gate-Drivers Single Gate LED backlighting Multiplex Controllers Darlington Transistors Dual Gate Integrated Switch Matrix Gate-Drivers Standard Logic Power Supply DBS Interface Low Saturation BJT Translaters MOSFET Controllers STB Power H-Bridges Analog Switches Active OR-ing Controllers Registers Chargers Audio Class D Amplifiers Analog Input Amplifiers Discrete ASSP |
 Pericom Total Timing Solutions Page 12 Comprehensive portfolio for complete clock tree solutions Highest frequency clock buffers Low voltage, low power clock generators Real time clock (RTC) generators Programmable crystal oscillators Ultra low jitter crystal oscillators Temperature compensated crystal oscillators Timing solutions for attractive markets Cloud computing / server storage Embedded automotive infotainment Internet of Things (IoT) Owned manufacturing for advantaged cost infrastructure Integrated operations for crystal and crystal oscillator manufacturing Automated and automotive-certified facility in Taiwan focuses on crystal oscillators
Fully automated facility in Jinan, China focuses on crystal manufacturing
|
 Page
13 DisplayPort
USB Type A USB Type B USB Micro B Power USB Type C All-in-One Connector USB Type C Connector Highly Attractive Market Opportunity 10Gbps reversible connector: single USB cable for data, audio, video and power Driven by next generation mobility platforms: notebook, smart phone, tablet, portable consumer Flexible “charge anywhere” approach to personal electronics Will drive conversion in storage, server, and Ultra HD displays Combined Diodes+Pericom offers complete system solution Extensive Pericom offering for USB connectivity: High performance cross bar signal switches USB3 / DisplayPort1.2 ReDrivers USB charging controllers High bandwidth USB3.1 multiplex/demultiplex Plug orientation detectors Diodes USB portfolio focused on power management: USB power switches Transient voltage suppressors ACDC primary side controllers Power MOSFETs Active rectifier |
 High
Speed Signal Path
Tx1, Rx1 TX2, Rx2 SBU1,SBU2 Type C/PD Protocol Control USB2.0 Signal Path D+,D- Power Solution VBUS CC1, CC2 Discrete •TVS for USB3.0/3.1 •High Voltage Power Switch •Load Switch •MOSFET Analog & Power •Type C Charger CC Detection •PD Adaptor Controller •High Voltage LDO •High Voltage USB Power Switch •DCDC Converter •ACDC Power Solutions High-Speed Serial Connectivit y •USB3.0/3.1 and DP/HDMI MUX •USB3 Crossbar •USB3.0/3.1 Re-Driver •Type C host CC Detection •Type C Protocol Controller •USB2.0 Mux
•Audio Switch
USB Type C Power Delivery |
 Complete
Platform Solutions: Notebooks Timing
Signal Integrity Switching Connectivity High-Speed Serial Connectivity |
 SKY
Rectifiers MOSFETs
Bipolar LDO DC-DC (Asynchronous) AC-DC (Secondary side controllers) LED Drivers (DC Input) Performance Enhancement Diodes’ product upgrade has expanded our SAM. SBR ® (Super Barrier Rectifiers) (Vb < 400v) DIOFET TM (Low R DS(on) , Vb < 100V) CMOS LDO (Low
power) DC-DC
(Asynchronous, high current)
AC-DC (Primary side controllers, Secondary side controllers) LED Drivers (AC Input) DIODESTAR TM Rectifiers (Vb > 600v) DIODESTAR TM MOSFETs (Ultra low R DS(on) , Vb > 600V) Low Noise LDO DC-DC (Synchronous, with low & high current) AC-DC (Quick Charging Controller solutions) LED Drivers (Full-Voltage Range, Triac-Dimmable/Non- Dimmable) Page 16 |
 Efficiency, Functionality and Control for Smartphones
Page 17 LED 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 Battery Power Management USB Power Switches Current Monitors Charger ICs Low-Saturation Bipolar Transistors ZXMP series MOSFETs RF Power Amplifier Low Dropout Regulators Audio Amplifier Class D Amplifier System Interface USB Power Switches Zener and TVS Arrays |
 Page
18 Strong Relationships Drive LCD/LED TV Product Roadmaps
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 Class D Amplifier |
 Page
19 Product Breadth and Performance for Computing Platforms
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 Class D Amplifier Wireless Connectivity DC-DC Converters Low Dropout Regulators |
 Page
20 Automotive
Networking ESD Protection TVS Protection Seat Control Module Hall Sensor SBR IntelliFET ® Voltage Reference Body Control Module Bipolar Transistors Shunt Regulator Voltage Reference IntelliFET MOSFETs Hall Sensor Braking Control Unit Voltage Reference IntelliFETs MOSFETs Hall Sensor Powertrain MOSFET Hall Sensor Super Barrier Rectifier ® (SBR) Daytime Running Lights LED Drivers Schottky Diodes MOSFETs Bipolar Transistors Interior Light LED Drivers Schottky Diodes MOSFETs Bipolar Transistors SBR and IntelliFET are registered trademarks of Diodes Incorporated Automotive Quality for Demanding Automotive Applications |
 Page
21 Power and Signal Management for the Broad Industrial Market
Power Management AC-DC Converters DC-DC Converters LDO Regulators HV Regulators Shunt Regulators Gate Drivers Synchronous Rectifiers HV Rectifiers and Bridges SBRs HV Switches Signal Conditioning Op Amps Comparators Linear Hall Voltage Reference Logic Current Monitors ESD Protection TVS Protection Illumination LED Drivers Synchronous Rectifiers HV Rectifiers and Bridges SBRs HV Switches MOSFETs System Protection Hall Sensors ESD Protection TVS Protection Motor Control Hall Sensors Motor Control/Drivers MOSFETs H-Bridges SBR Gate Drivers Actuators/Drivers Hall Sensors Relay Drivers IntelliFET MOSFETs |
 Page
22 Complete Charger and Power Adapter Solution and Trend
Primary Rectifiers Primary Rectifiers Bridges Bridges Diodes Diodes Switches Switches HV BJT HV BJT PSR Controllers PSR Controllers AP3775/6 AP3775/6 Secondary Rectifiers Secondary Rectifiers Schottky Diodes Schottky Diodes SBR ® SBR ® Sync. Rectifiers Sync. Rectifiers PSR Accelerator AP434X PSR Accelerator AP434X Standby Power Standby Power Cost Cost System Efficiency System Efficiency New Technology New Technology Market Trend |
 TSSOP-8/14/16L SOT89 SC59 SOT353/363 SOT143/SC82 SOT543/553 /563/666 SOT223 ~ 2015 SOT953/963 QSOP-16/20L TSOT23-5/6 DFN0603 Power5060-8L ITO220AC-S DFN1114-3 DFN5060-4 Power3333-8L DFN0808-4 DFN0806-3 PD-123/323 PowerDI3030 MSOP-8/10L TO263-2/3/5L TO220-3L SOP-8/14/16L-EP MSOP-8/EP TO252-2/3/4/5L SOD523 SOD323/-F SOIC-14/16L TO220-5L ITO220S TO262AA QFN5050-32 SOP-8L QFN4040-20 PowerDi-5 SOT523 SOT25/26 PDI3333-8 (Stack die + Clip) DFN0604-3 2016 ~ TO252-4L(Auto) (Stack die+Al wire) SOD123 DFN0806-6 Packaging Focus: Miniaturization and Power Efficiency Page 23 PM-III SOD923 D2PAK-7L DFN1212-4 (Flip Chip QFN) DFN1616-2 DFN1310H3-6 QFN3055-28 PD3020B-8 (Pre-mold) DFN2020F-8 PowerDI-5SP |
 Page
24 Packaging Focus: Miniaturization and Power Efficiency
Power Efficiency Miniaturization DDFN0402 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 |
 Page
25 Shanghai-based packaging with capacity
approximately 30 billion units
The new packaging facility in Chengdu has
a potential capacity of 5X that of Shanghai
Additional packaging facilities in Neuhaus,
Germany and in Chengdu, China
Two discrete fabs, two analog fabs
in Kansas City, Missouri (5” and 6”),
Oldham, United Kingdom (6”),
and Shanghai (6”) respectively
Bipolar, BiCMOS, CMOS & BCD process
Strong engineering capabilities
CapEx Model = 5% -
9% of Revenue Packaging Wafer Fabs Economies of Scale: Loading Percentage in Shanghai Efficient Manufacturing + Superior Processes 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 78.8% 91.0% 80.7% 83.5% 91.4% 81.4% |
 Collaborative Customer Relationships
Page 26 |
 Annual
Revenue Growth Rates Outperforming the Industry
Page 27 Industry (Discrete + Analog + Logic) 2005 to 2015 Growth Diodes Inc.: 14.7% 15.6% 59.9% 16.9% 8.0% 4.0% 41.1% 3.6% -0.20% 30.5% 7.7% -3.5% -3.3% 13.5% -0.5% -1.3% -12.2% 34.4% -6.2% -7.1% 6.8% 11.4% -4.9% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 SAM Industry: 3.1% |
 Revenue
Growth ( In millions )
+41% +3.6% -0.2% +7.7% ( Acquisition Years ) * * * * * +30.5% -4.7%
Page 28 215 343 401 433 434 613 635 634 826.8 890.7 848.9 0 100 200 300 400 500 600 700 800 900 1000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 |
 Revenue
Profile – 1Q2016
By Channel By Region By End Market Page 29 Asia Pacific Europe North America Distribution OEM / EMS Industrial Consumer Communications Automotive Computing 9% 80% 11% 68% 32% 19% 21% 24% 30% 6% |
 First
Quarter 2016 Financial Performance Page 30
In millions, except per share
1Q15 4Q15 1Q16 Revenue $206.2 $214.4 $222.7 Revenue Growth 8.0% 3.9% Gross Profit (GAAP) $63.9 $53.6 $64.2 Gross Profit Margin % (GAAP) 31.0% 25.0% 28.8% Net Income (GAAP) $11.1 -$4.8 -$1.7 Net Income (non-GAAP) $12.7 $6.7 $5.9 EPS (non-GAAP) $0.26 $0.14 $0.12 Cash Flow from Operations $38.6 $19.7 $25.5 EBITDA (non-GAAP) $35.3 $16.6 $24.9 |
 Balance
Sheet Page 31
Dec 31, 2015 Cash $243 $218 $237 Short-term Investments $12 $65 $43 Inventory $182 $203 $205 Current Assets $676 $751 $745 Total Assets $1179 $1599 $1580 Long-term Debt $141 $454 $440 Total Liabilities $369 $756 $734 Total Equity $810 $843 $846 Mar 31, 2016 In millions Dec 31, 2014 |
 Page
32 Expect revenue to range between $230 million and $240 million, or up
3.3 to 7.7 percent sequentially;
Expect GAAP and non-GAAP gross margin to be 31.5 percent, plus or minus 2
percent;
Non-GAAP operating expenses are expected to be approximately 25 percent of
revenue, plus or minus 1 percent;
Expect interest expense to be approximately 2.5 million;
Expect income tax rate to be 28 percent, plus or minus 3 percent, and shares
used to calculate diluted EPS for the second quarter are anticipated to
be approximately 49.5 million;
Purchase accounting adjustments related to Pericom and previous acquisitions
of $4.4 million after tax are not included in these non-GAAP
estimates. 2Q 2016 Business Outlook |
 2 1 5 3 Kansas City, MO Wafer Fab Shanghai, China Packaging Neuhaus, Germany Packaging Oldham, UK Wafer Fab 4 Chengdu, China Packaging 1 Shanghai, China Wafer Fab Global Manufacturing Infrastructure 1 1 6 Jinan, China Crystal Fab, Packaging 2 Jhongli, Taiwan Oscillator Module Packaging Page 33 |
 Diodes Strategy: Profitable Growth Page 34 |
 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 Diodes was named one of the 10 Best Stocks of the Past 20 Years March 2012 |