UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
DIODES INCORPORATED
(Exact name of Registrant as Specified in Its Charter)
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(Former Name or Former Address, if Changed Since Last Report)
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 (see General Instructions A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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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. Copies of the Company’s corporate presentation slides, updated on January 14, 2020, are attached herewith as Exhibit 99.1.
Forward-Looking Statements
The Presentation attached to this Current Report on Form 8-K as Exhibit 99.1 contains forward-looking statements that involve future risks and uncertainties as contemplated by the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in Exhibit 99.1 should be regarded as “forward-looking statements” and Exhibit 99.1 contains a more detailed listing of the risks and uncertainties associated with those forward-looking statements. Diodes undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits.
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Exhibit Number |
Description |
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99.1 |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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.
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Dated: January 14, 2020 |
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DIODES INCORPORATED |
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By |
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/s/ Brett R. Whitmire |
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Brett R. Whitmire |
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Chief Financial Officer |
22nd Annual Needham Growth Conference New York, NY January 14th, 2020 Exhibit 99.1
Page Safe Harbor Statement 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 updates to Diodes Incorporated’s fourth quarter 2019 business outlook as of November 4, 2019, which include the following: expect revenue to be approximately $300 million, plus or minus 2.0 percent, which at the mid-point represents annual growth of 2.8 percent even in the overall weak market environment and continued outperformance of our served market; expect GAAP gross margin to be 36.5 percent, plus or minus 1 percent; non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 22.0 percent of revenue, plus or minus 1 percent; expect net interest expense to be approximately $2.0 million; expect tax rate to be 21 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the second quarter are anticipated to be approximately 52.5 million; purchase accounting adjustments for Pericom and previous acquisitions of $3.7 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 or that integration of acquired businesses may not continue as rapidly as we anticipate; the risk that we may not be able to maintain our current growth strategy or continue to maintain our current performance, costs, and loadings in our manufacturing facilities; the risk that we may not be able to increase our automotive, industrial, or other revenue and market share; risks of domestic and foreign operations, including excessive operation costs, labor shortages, higher tax rates, and our joint venture prospects; the risk that we may not continue our share repurchase program; the risks of cyclical downturns in the semiconductor industry and of changes in end-market demand or product mix that may affect gross margin or render inventory obsolete; the risk of unfavorable currency exchange rates; the risk that our future outlook or guidance may be incorrect; the risks of global economic weakness or instability in global financial markets; the risks of trade restrictions, tariffs, or embargoes; the risk of breaches of our information technology systems; and other information, including the “Risk Factors” detailed from time to time in Diodes’ filings with the United States Securities and Exchange Commission. This presentation also contains non-GAAP measures. See the Company’s press release on November 4, 2019 titled, “Diodes Incorporated Reports Third Quarter 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.
Page Management Representative Dr. Keh-Shew Lu President and CEO Diodes IncorporatedSince 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
Page Company Representative Laura Mehrl （冯蓉媞） Company spokesperson, 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 A leading global manufacturer and supplier of high-quality application specific, standard products within the broad discrete, logic, analog and mixed-signal markets, serving the Automotive, Industrial, Consumer, Communications, and Computing segments. About Diodes Incorporated
Company Overview NASDAQ: DIOD Founded in 1959 Headquartered in Plano, TX; 21 locations globally Manufacturing in UK, Germany, China, and Taiwan ISO9001:2008 Certified / TS16949:2009 Certified ISO14001 Certified Key acquisitions: Anachip Corporation, Taiwan Jan. 2006 Advanced Power Devices Nov. 2006 Zetex June 2008 Power Analog Microelectronics (PAM) Oct. 2012 BCD Semiconductor Mar. 2013 Pericom Semiconductor Nov. 2015 TI Greenock fab April 2019 Over 7320 employees worldwide 27 consecutive years of profitability Page Global Operations and World-class Manufacturing & Packaging
Global Organization - TS16949 Manufacturing Page Legend Headquarters Wafer Fab Assembly/Test/Packaging Design & Sales/Marketing
Page Record Annual Revenue in 2018; Projected to Achieve New Record in 2019 Track Record of Consistent Growth *YTD’19 based on mid-point of 4Q19 guidance as provided on November 4, 2019 CAGR: 14.24% (2005-2018) (In millions)
Vision: Create Shareholder Value Page Goal 1: $1B Market Cap Goal 2: $1B Annual Revenue Goal 3: $1B Gross Profit Goal 4: $1B Profit Before Tax $1B Market Cap $1B Revenue $1B Gross Profit $1B PBT 2010 2017
Shifting Gears to Profitability Growth Page Mission: Profitability growth to expand shareholder value Strategy: Grow Revenue to $2.5B at 40% Gross Margin Goal: $1B Gross Profit by 2025
Business Model Page Implied 20182025 CAGR Revenue $1.2B à 2.5B 10.9% Gross Margin 35% à40% Gross Profit $435M à $1B 12.6% R&D% 5% à 7% SG&A%15% à13% Op. Profit15% à20%
Page Gross Profit Target of $1B in 2025 Driving Profitability Growth & Operating Leverage (In millions) Implied CAGR: 12.6% CAGR: 20.5% Solid Operating Leverage: Managing OpEx to target model of 20% of revenue CapEx remains within target model of 5-9% of revenue Generating record earnings and cash flow Gross Profit EBITDA 3rd consecutive year of record Gross Profit CAGR: 28.99% (In millions)
Targeted Market Segment Distribution Automotive Connected driving, comfort/style/safety, electrification/powertrain Industrial Embedded systems and precision controls Consumer IoT: wearables, home automation, smart infrastructure Communications Smartphones: advanced protocols and charging Computing Cloud computing: server, storage, data centers Page ~60% of revenue ~40% of revenue (39% as of 1H19)
Automotive Applications Driving Growth Connected Driving ADAS (Advanced Driver Assistance Systems) Telematics Infotainment Systems Comfort, Style and Safety Lighting Migration to LED and intelligent illumination BLDC motor control Migration from Brushed to Brushless DC Motors Electrification/Powertrain Conventional Powertrain à Hybrid à Electrification Battery management Move to 48V battery Focus Applications: 35.9% 19.1% 44.8% 29.2% 37.8% 2013 - 2018 CAGR: 33% Page
Automotive Opportunity Potential Revenue in Automotive $ / Car Brushless DC (BLDC) Motors $37.25 Connected Driving $25.82 Powertrain and Battery Management $14.72 Lighting – Moving to LED $7.53 Total $85.32 Normalized to 2013 Infotainment & Telematics Body Control Electronics Power Train Seat Control Modules Interior and Exterior Lighting Advanced Driver Assistance Systems Page
Industrial Growth Increasing IC content in embedded systems Switching and signal path for networked systems and automation Signal conditioning and timing for precision controls Motor controls, sensors and power management for smart meters 13.4% 2013 - 2018 CAGR: 14.6% 2.5% 8.4% 21.6% 29.2% For the 1H2019, 29% of total revenue is from Industrial market Page
IoT – Machine to Machine (M2M) Growth Opportunities: Power XTAL and clock Packet switch M2M – Dominated by short range technology 73% are short range, mostly Wi-Fi 2017: connections @ 750 million 2023: connections @ 2600 million M2M – By Product IoT and M2M Modems Routers POS Wireless beacons Diodes Key Products $ / Device Analog $0.20 Power Management $1.30 MOS/BJT $3.39 Diodes and Rectifiers $2.99 Timing and Connectivity $3.50 Total $11.38 M2M – By Application Smart Infrastructure POS Manufacturing / Industrial POS Display Port Switch I2C Level Shifter w/Buffer USB Switch USB Power Switch USB 3.0 ReDriver USB 3.0 Switch PCI Switch/ ReDriver SATA Switch/ ReDriver Voltage Detector Xtal USB Port USB 3.0 Controller High Bandwidth Mux ReDriver DC Adapter GPIO Expander Temperature Sensor DVI Scaler Mobile DDR/NOR Flash NAND Flash USB 3.0 PCIe/ SATA DP I2C Bus UART USB 2.0 CPU x1 PCIe x4 PCIe 100MHz HCSL Clk Wi-Fi Wi-Fi Wi-Fi Wi-Fi Application Processor AC-DC LOGIC& STDLIN LDO LDSW DC-DC Discrete Wi-Fi Router FL series 25MHz XTAL PCIe Packet Switch PCIe Clock Gen Page
Consumer: IoT Driving Power & Connectivity Requirements Diodes Key Products $ / Box Analog >$0.20 Power Management >$1.30 MOS/BJT >$10.00 Diodes and Rectifiers >$5.00 Timing and Connectivity $3.50 Total $20.00 Enterprise Smart Infrastructure Wearables Consumer & Home Asset Tracking Security & Surveillance Retail Page
Sensor IoT Segment: Smart Home Smart Home – up to 477Mu Safety and Security Climate Control Consumer Electronics Lighting control 400 100 200 300 Host Controller X1 PCIe2 100MHz HCSL Clk SSD X1 PCIe2 (or SATA controller) 25MHz Xtal PCIe CG PI6C557-05 PCIe Packet SW PI7C9X2G304SL Wireless Controller Wireless Controller Smart Home Gateway Smart Lighting MHz Xtal kHz Xtal AC Power LED Driver AC-DC Light User Interface Smart Speaker MHz Xtal SoC Growth Opportunities Power LED driver Xtal and clock Packet switch SoC MHz Xtal MOSFET TVS NAND SDRAM Wi-Fi LED Drive Audio Amp Digital Assistant Diodes Key Products $ / Box Analog $0.25 ~ $0.40 Power Management $1.80 MOS/BJT $1.10 Diodes and Rectifiers $0.50 Timing and Connectivity $3.50 Total $7.30 AC-DC Audio CODEC Wi-Fi Memory Ethernet port 2015 2016 2017 2018 2019 2020 World market for connected home devices (excluding energy and controls) Unit Shipments, 2015 - 2020 Safety & Security Climate Control Consumer Electronics Lighting & Controls AC Power SoC Page
Smartphone: Efficiency, Functionality and Control Driving Smartphone Growth Smart speaker/IoT rising AR / VR Foldable screens 5G Smartwatches Growth Opportunities Type-C MUX MOSFET LDO, OVP LDSW, Audio, DCDC, LED/OLED Driver, ACDC Diodes Key Products $ / Phone Analog $0.55 Power Management $1.50 MOS/BJT $0.33 Diodes and Rectifiers $0.42 Timing and Connectivity $3.00 Total $5.80 Page
Networking Segment WW enterprise and service provider router market grew 4% in 2017 to $12.5B Continues to exhibit healthy growth, driven by network refreshes and investments in the fast-growing campus and datacenter segments Diodes Key Products $ / Router Analog $0.20 Power Management $0.30 MOS/BJT $3.70 Diodes and Rectifiers $2.10 Timing and Connectivity $13.00 Total $19.30 Cisco Cisco Cisco Others Others Others Switching & Router Market Leaders Ethernet Switching Enterprise Routers Service Provider Routers Huawei, HPE, Arista, others Huawei, Technicolor, Juniper, others Nokia, Huawei, Juniper, others 0% 10% 20% 30% 40% 50% 60% Worldwide Market Share – Revenue. Source Synergy Research Group Growth Opportunities Power Xtal XO, and clock Packet switch ReDriver Page
Cloud Computing Accelerating Enterprise Market Page ReDriver support for USB connectivity Wide range of signal protocols: PCIe, SAS, SATA, GbE, USB MUX products for high capacity solid state storage Crystal oscillators for increasing clocking speeds
Computing Platform: Server/Storage Solution Source: IDC, Diodes Marketing Server Platform Solution Total unit shipment Growth (CAGR) = 3.82% Almost all of Server vendors are our existing customers ODM direct has the highest volume – mainly in TW Diodes products are well positioned in this segment Connectivity, Signal Integrity, Timing, Standard Linear, Power Management, Power Switches and Protection devices WW Server total shipments (Mu) Diodes Key Products $ / Server Analog $23.26 Discrete $5.71 Total $28.97 BLADE SERVER PLATFORM Dual/Quad Core CPU’s HDD SAS2.0/SATA3.0 DDR 4 PCIe Gen3/4 SATA 3.0 Signal Switch PCIe SSD SAS2.0/ SATA3.0 ReDriver Power Management Dual/Quad Core CPU’s CPU USB3 Re-Driver I2C L/S SERVER PLATFORM HDD Chipset RAID Card Expander Card MEZZ Card XTAL PCIe Clock InfiniBand Card 10G ReDriver XO 4x10G 1 x 1G Middle Plane HDD Plane Reset IC System Clock Clock Buffer BMC LAN Card XO 100G QSFP 10G Re-driver SATA3 USB2 S & C 2546 To Back-plane I2C Buffer BMC Front Rear PCIe slot XO PCIe Gen3/4 Re-Driver Combo Re-Driver M.2 SATA/PCIe Bus switch I2C MUX IO Expander PCIe Gen4 Clock Buffer GTL L/S PCIe NVME PCIe SSD XO XO 10G ReDriver SAS3 Re-Driver Front SAS3 Re-Driver PCIe Clock Buffer VGA Switch Page
USB Type-C Applications Driving Growth Focus Applications Smartphone, Tablet NB/DT/WS/AIO, PC, Server CE Appliance PC Peripheral/Monitor Inflight Entertainment Automotive - Infotainment Robotics Chargers Data speed, flexibility, and simplicity of use are key drivers Vbus Tx/Rx Tx/Rx Tx/Rx Tx/Rx D+/D- SBU1, SBU2 D+, D- CC1, CC2 PMIC with PD Controller AUX+/AUX- Tx/Rx Tx/Rx Tx/Rx Tx/Rx TVS 10G Type-C USB /DP ALT ReDriver TVS TVS TVS I2C VR Switch TVS USB3.1G2 Application Processor USB3.1G2/DP1.4 AUX+/AUX- USB2.0 Tx/Rx USB3.1G2 XTAL/ XO Power Switch Charger Detect USB Type-C Connector Supports data, video, and power Page
USB Type-C Potential Normalized to 2016 USB-C adoption to grow from 300M (2016) to 5B units (2021) - IHS Dec 2017 Diodes Key Products $ / System Connectivity, Signal Integrity and Timing $3.25 Analog (DCDC, LDO, Sleep Mode Charger etc) $0.89 Power Management Switch $0.40 MOSFET/BJT $0.25 Diodes, Rectifiers and TVS $0.50 Total (per USB-C port) $5.29 Page
5G Applications Driving Growth Focus Applications: Cloud Computing Data Center Server Gateway Internet Gateway Fiber network Core Network, Cell Stations Small Cells Base Station Edge Computing Server Smart antenna Fiber network End Products Portables: Smartphone, Tablet Smart Car Consumer: VR/AR, Drone, IoTs Telecom: 5G CPEs Embedded/Industrial ,000 cells https://www.rcrwireless.com/20171212/network-infrastructure/report-finds-major-increase-in-small-cell-deployments-tag17 Residential Enterprise private Enterprise public Urban public Rural and remote Small Cell Market Forecast 5G – Dominated by small cell and data center 50% increase in small cells between 2018 and 2020
5G Ecosystem Growth Potential Normalized to 2019 Diodes Key Products $ / System Precision Timing & Connectivity $5.00 ~ $10.00 Discrete $2.03 ~ $2.50 Analog $9.00 ~ $11.28 Total $16.03 ~ $23.78
PON Power Clock PCIe Mux TVS Mobile Phone Power Clock Sensor BATMAN MIPI SW ReDriver T-Box Power Packet Switch Clock FCP OTN: CWDM DWDM Remote Radio Unit Power Mgmt Clock Level Shifter Logic Baseband Unit Power Mgmt Clock Level Shifter IO Expander Server/Storage Power Mgmt Clock Gen IO Expander I2C Mux Clock Buffer ReDriver Logic Supervisory TVS Internet Power Mgmt LDO Precision Shunt Regulator Zener Shunt Regulator MOSFET Controller Wireless Router USB Mux/Demux LDO Quartz Converter DC-DC Converter Residential Repeater Linear Regulator Optical Transfer Packet Transfer Network PCIe Packet Switch Gateway Router Switch Universal Level Shifter VoIP xDSL Power Transistors 5G System Opportunities
Solution Provider Industrial Controls Page
Complete Platform Solutions: Notebooks Page DCDC Converter CPU PCH MOSFET LED Driver USB 2.0 Switch A/V Codec DDR Regulator LDO Analog Switch TVS USB 3.0 ReDriver Crossbar Switch Vcore DCDC Controller Sleep / Charge Detect Video Switch MCU USB3 / DP Switch LSP Con LCD Panel TVS DP-to-VGA Converter Video Switch TVS HDMI ReDriver SATA / PCIe ReDriver HDD / SSD USB2 / 3 Switch USB Power Switch TVS Docking Sub-system DDR4 DIMM 3D Camera LDO USB3 ReDriver UART D+, D- Memory Bus DP0..3 Tx, Rx I2C D+, D- D+, D- AUXHPD+ AUXHPD- SATA / PCIe DDI USB3.0 eDP1.3 DP1.2b HDMI 1.4 TVS TVS LAN Switch MOSFET Audio Amplifier Sensor ACDC External Charger DCDC LDO Logic Sensor TVS USB Switch LED Driver Timing Signal Integrity Switching Connectivity Audio SBR ACDC Std Linear High-Speed Serial Connectivity SBR Diode Diode
Technology Focus Page Products 20Gbps ReDrivers and Switches Automotive Packet Switch for Telematics / ADAS Complete USB Type-CTM Signal Switching High speed clocking for cloud computing Ultra low power and low noise LDOs for IoT Low Cj TVS for signal integrity Lowest rDS(on) LDMOS for battery efficiency Compact QFN and DFN Power density PowerDI Chip scale packaging and plating capability Extensive multi-chip package technology High performance 8” MOSFET trench technology Advanced Epi bipolar transistor processes Proprietary rectifier technology Rugged automotive grade NMOS and PMOS Assembly/Test Wafer Fab
Key Differentiator – Packaging Design Page Focus: Miniaturization and Power Efficiency ~ 2018 PowerDI5060-8L PD3333-8L DFN0808-4 DFN0806-3 SOP-8/14/16L-EP MSOP-8/EP TO252-2/3/4/5L SOD123(F)/923 SOD523/323 TO220-5L TO262AA/AB QFN5050-32 DFN0604-3 2019 ~ ITO220AC-S DFN0806-6 DFN0603-2 TO220-2/3L PowerDI-5 PowerDI-5SP TSOT23-5/6 SOT25/26 SOT223/143 SOIC-14/16L SOP-8L DFN1114-3 (stack die) MSOP-8/10L QSOP-16/20L SOT523/353/363 ITO220S PDI-123/323 FC-DFN1212-4 TO263-2/3/5/7L SOT563/953/963 SWP-DFN1006-2 (Side-wall Plating) FC-SSOT-23 SWP-DFN2020E-6 (Side-wall Plating) DFN0606-3 DFN6040-22 TSSOP-8/14/16L(EP) FC -TSOT23-6L QFN2618A-16 (Chip on Lead） Power5060-8L K （2mil die） SWP-PDI5060-8L R TO252-4L C HS IntelliFET (3mil Al wire) QFN3035A-21 (MCM/Clip/Stack) PowerDI3333-8L ((2mil die) PD5060-8L S PowerDI3333-8 E (FC + Clip) PD3333D-8L （Stack Clip） SOIC-14L-EP (Smart HS Power Switch ) TO263-6L&7L (Stack die+ Al wire) PowerDI1012S (TOLL) SOIC-8L-EP Y (Monolithic HS IntelliFET) DFN1612B-8 (Epoxy printing) QFN2020B-12 FC-QFN2030-16 DFN3030N-8 （Pre-mold） PowerDI3025-20 QFN3535A-20 DFN1010H4C-4 PowerDI5060-8L T (GaN) PD8080(Ribbon) (Sep’19) PD5050 (FC + Clip) (Nov’19) CSP TSN3518 CSP PCSP0402 CSP DDFN0603 CSP TSN2718 CSP DDFN0402 CSP X3-DSN1006
Page Advanced Packaging Multi-Chip Packaging Miniaturization DDFN0402 the smallest discrete semiconductor package Dual-Flat No-Lead (DFN) DDFN (Encapsulated CSP) Chip-Scale Package (CSP) HS IntelliFET: ZXMS3001 Miniaturization and Multi-Chip Packaging
Page Shanghai-based packaging with capacity over 34 billion units Chengdu facility has potential capacity 3X of Shanghai Additional facilities in Neuhaus, Germany and Chengdu, China Two fabs in Shanghai (6” and 8”), one fab in Greenock, UK (8”), one discrete fab in Oldham, UK (6”) Bipolar, BiCMOS, CMOS and BCD process Strong engineering capabilities Packaging Wafer Fabs Efficient Manufacturing + Superior Processes Economies of Scale: Package Capacity & Loading Percentage in SAT & CAT *CapEx Model = 5% - 9% of Revenue billions of units
Third Quarter 2019 Financial Performance Page In millions, except per share 3Q18 2Q19 3Q19 YoY Revenue $320.9 $322.0 $323.7 0.8% Gross Profit (GAAP) $115.2 $122.0 $122.0 5.9% Gross Profit Margin % (GAAP) 35.9% 37.9% 37.7% +180bp Net Income (GAAP) $30.9 $36.3 $38.1 Net Income (non-GAAP) $34.5 $40.0 $41.9 22.0% EPS (non-GAAP) $0.68 $0.77 $0.81 19.1% Cash Flow from Operations $35.5 $40.6 $67.2 EBITDA (non-GAAP) $72.0 $77.1 $78.3 8.8%
Balance Sheet Page In millions Dec 31, 2017 Dec 31, 2018 Sept 30, 2019 Cash $204 $241 $218.4 Short-term Investments $5 $7.5 $7.9 Inventory $217 $215 $231 Current Assets $662 $735 $763 Total Assets $1489 $1526 $1610 Long-term Debt (including the current portion) $247 $213.8 $119.0 Total Liabilities $615 $549 $533 Total Equity $874 $977 $1077
Revenue Profile as of 3Q 2019 By End Market Page 16% 28% 24% 22% 10% Industrial Communications Consumer Automotive Computing By Channel By Region 9% 74% 17% Asia Pacific North America 66% 34% Distribution OEM / EMS Europe
Page Revenue to be approximately $300 million, +/- 2.0%, which at the mid-point represents annual growth of 2.8 percent even in the overall weak market environment and continued outperformance of our served market GAAP gross margin to be 36.5%, +/- 1% Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 22.0% of revenue, +/- 1% Interest expense to be approximately $2.0 million, and income tax rate is expected to be 21.0%, +/- 3% Shares used to calculate diluted EPS approximately 52.5 million Purchase accounting adjustments of $3.7 million, after tax, for Pericom and previous acquisition are not included in these non-GAAP estimates Fourth Quarter 2019 Business Outlook *Guidance as provided on August 5, 2019
Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20% operating profit Next Strategic Goal: $1B gross profit Tactics: Increased focus on high-margin Automotive, Industrial and Pericom products Investment for technology leadership in target products, fab processes, and advanced packaging System solutions to drive business expansion Page
