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
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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:
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. ☐
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 November 4, 2021, 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
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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99.1 |
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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 thereunto duly authorized.
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DIODES INCORPORATED |
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November 4, 2021 |
By: |
/s/Brett R. Whitmire |
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Brett R. Whitmire |
Investor Relations Presentation Plano, TX November 2021 Exhibit 99.1
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 2021 business outlook as of November 3, 2021, which include the following: expect revenue to be approximately $476 million, plus or minus 3.0 percent; expect GAAP gross margin to be 38.7 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 21.0 percent of revenue, plus or minus 1 percent; expect non-GAAP net interest expense to be approximately $1.2 million; expect tax rate to be 18 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the fourth quarter are anticipated to be approximately 46.2 million; purchase accounting adjustments for Pericom and previous acquisitions of $3.4 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 the COVID-19 pandemic may continue and have a material adverse effect on customer demand and staffing of our production, sales, and administration facilities; 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 the cost, expense, and diversion of management attention associated with the Lite-On Semiconductor Corp. acquisition may be greater than we currently expect; 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 3, 2021 titled, “Diodes Incorporated Reports Third Quarter 2021 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 Dr. Keh-Shew Lu Chairman, President and CEO Experience: Texas Instruments 27 years Senior Vice President of TI Worldwide Analog and Logic President of Texas Instruments – Asia Education: Doctorate and Master's Degree in Electrical Engineering Texas Tech University Bachelor's Degree in Engineering National Cheng Kung University – Taiwan
Company Representative Experience: Head of Corporate Marketing, Diodes Incorporated, Milpitas, CA Head of Corporate Marketing, Pericom, Milpitas, CA Vice President, Marketing, CA Technologies (Broadcom), Redwood City, CA Director, Global Marketing Strategy, EMC, Pleasanton, CA Director, Marketing, Zarlink Semiconductor (Microchip), San Jose, CA Marketing Management positions at Cisco and National Semiconductor, CA Education: MBA, Marketing/Entrepreneurship, Saint Mary's College of California BS in Electrical and Computer Engineering, UC Santa Barbara Gurmeet Dhaliwal Company spokesperson Director, Investor Relations
About Diodes Incorporated Vision: Profitability Growth to Maximize Shareholder Value Our Core Values: Integrity, Commitment, Innovation Diodes delivers high-quality semiconductor products to the world’s leading companies in the consumer electronics, computing, communications, industrial, and automotive markets
Company Overview NASDAQ: DIOD; Founded in 1959 Headquartered in Plano, TX; 31 locations globally Manufacturing in UK, Germany, China, and Taiwan ISO 9001:2015 Certified / IATF 16949:2016 Certified ISO 14001:2015 Certified Key acquisitions: Lite-On Semiconductor – Nov. 2020 TI Greenock fab - April 2019 Pericom Semiconductor – Nov. 2015 BCD Semiconductor - March 2013 Power Analog Microelectronics (PAM) - Oct. 2012 Zetex - June 2008 Advanced Power Devices - Nov. 2006 Anachip Corporation Taiwan - Jan. 2006 Over 9,000 employees worldwide 29 consecutive years of profitability Global Operations and World-class Manufacturing & Packaging
Global Organization Wuxi, China Jinan, China Shanghai, China Jhongli, Taiwan Hsinchu, Taiwan Keelung, Taiwan Taiwan City, Taiwan Munich, Germany Neuhaus, Germany Plano, Texas Milpitas, California Greenock, UK Chengdu, China Logistics Hub and Warehouses Oldham, UK Key: Headquarters Wafer Fab Assembly/Test Design/Sales/Marketing
Our Sustainability Commitment We view sustainability as a competitive advantage and have adopted a sustainability-oriented approach to assess and address related risks that may influence our operational activities, business results, and financial performance. Please refer to Governance and Oversight for additional details Key focus areas regularly reviewed by our Board of Directors Instituted a cross-functional Sustainability Steering Team to address the sustainability related risks and opportunities The Sustainability Steering Team provides periodic updates to the Board of Directors
Risk Management & Corporate Governance Guidelines Board’s Oversight of Risk Management Robust standing committee structure and board self-evaluation process Active engagement with the management team to identify and assess risks Broad industry experience of the directors helps anticipate emerging and interrelated risks and facilitate effective risk control and mitigation mechanisms Director access to Company employees and independent advisors Rigorous Corporate Governance Guidelines and Policies Stockholder Nominating Procedures Director Selection Criteria and Retirement Age Policy Stock Ownership Policy and Stock Holding Policy Foreign Exchange Risk Management Policy (also referred to as the Hedging Policy)
Board of Director Diversity Diverse Board Representation Seven (7) out of our eight (8) directors are independent directors Gender, racial, and ethnic diversity reflected on board representation Two (2) female directors Broad set of director skills, expertise, and industry backgrounds Zero percent of the board has familial relationships with other directors Limits on director over-boarding Board of Directors Diversity Profile Gender Race Country of Residence Male 6 75% White 2 25% USA 4 50% Female 2 25% Asian 6 75% Taiwan 4 50% Total 8 100% Total 8 100% Total 8 100%
Performance-Based Executive Compensation Performance goals based on both Company performance goals and individual objectives: Bonus based on Revenue, Non-GAAP Earnings Per Share, and ESG PSU’s based on cumulative 3 year Operating Income Alignment between executive compensation and stockholder interests No special grants were made to executive officers, including CEO, during the last fiscal year (2020) Annual compensation review and stockholder approval Independent Compensation Committee and independent compensation consultant Recoupment of Executive Compensation Policy
Track Record of Consistent Growth Continued Outperformance of Served Markets ($ in millions) Revenue Revenue for 2021 is based on Q1-Q3 result and Q4 guidance CAGR: 12.32% (2005 - 2020) Q4 Q1 + Q2 + Q3
Vision: Create Shareholder Value 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 Mission: Profitability growth to expand shareholder value Strategy: Grow Revenue to $2.5B at 40% Gross Margin Goal: $1B Gross Profit by 2025
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 ~60% of revenue ~40% of revenue (34% for 2020)
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 Hybrid Electrification Battery management Move to 48V battery Focus Applications: 8.7% 19.1% 44.8% 29.2% 37.8% 14.3% 2014 - 2020 CAGR: 25%
Automotive Opportunity 2021 Automotive Potential Revenue $ / Car Automotive Motor Control $39.57 Connected Driving (Infotainment, Telematics & ADAS) $30.97 Powertrain, Electrification & Body Control Electronics $14.77 Lighting – Moving to LED $11.23 Total $96.54 Body Control Electronics Motor Control Interior and Exterior Lighting Advanced Driver Assistance Systems Car & LV Volumes – IHS Markit 2020 DIODES’ SAM = volume * $/car Infotainment & Telematics Power Train Normalized to 2013
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 For 2020, 23% of total revenue is from Industrial market 2014 - 2020 CAGR: 8.2%
IoT – Machine to Machine (M2M) Growth Opportunities: Power, Sensor, DC-DC Gate Driver, BJT, MOSFET XTAL and clock Packet switch, IO Expander 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 AGV (Automated Guided Vehicle) UAV (Unmanned Aerial Vehicle) 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 AC-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 STDLIN DC-DC / LDO AC-DC Diodes Key Products $ / AGV Discrete $3.5 Analog $0.4 Timing and Connectivity $10.4 Total $14.3 PMU DDR WiFi Module Gate Driver and MOS LiDAR / Gyro Sensor PCIe Packet Switch Camera Sensor CAN Transceiver Embedded Processor SSD M Isolated DCDC 48V Battery LDO, DCDC, Hall sensor, Audio Amp IO Expander AGV
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
Sensor IoT Segment: Smart Home Smart Home – expected to grow to 1.4Bu by 2023 Safety and Security Climate Control Consumer Electronics Lighting control 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 $0.40 ~ $0.65 Power Management $1.80 MOS/BJT $1.10 Diodes and Rectifiers $0.50 Timing and Connectivity $3.50 Total $7.55 AC-DC Audio Amp Wi-Fi Memory Ethernet port AC Power SoC DC-DC / LDO DC-DC / LDO
Smartphone: Efficiency, Functionality, and Control Driving Smartphone Growth Smart speaker/IoT rising AR / VR Foldable screens 5G Smartwatches Growth Opportunities USB 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
Cloud Computing Accelerating Enterprise Market 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 LDOs, SBR, and TVS for power management and protection
Server Platform Solution CAGR is 5% (2020-2024) Almost all of Server vendors are Diodes existing customers Diodes products are well positioned in this segment Connectivity, Signal Integrity, Timing, Standard Linear, Power Management, Power Switches, Protection or HV MOSFET / SBR devices AC-DC MOSFET / SBR Power Adapter BLADE SERVER PLATFORM Dual/Quad Core CPU’s HDD SAS2.0/SATA3.0 DDR 4 PCIe Gen3/4 PCIe SSD USB3 Re-Driver I2C L/S SERVER PLATFORM HDD 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 XO 100G QSFP 10G Re-driver SATA3 USB2 S & C 2546 To Back-plane I2C Buffer BMC Front Rear PCIe slot M.2 SATA/PCIe Bus switch I2C MUX IO Expander PCIe Gen4 Clock Buffer GTL L/S PCIe NVME PCIe SSD XO 10G ReDriver SAS3 Re-Driver Front SAS3 Re-Driver PCIe Clock Buffer VGA Switch MOSFET Vcore DCDC Controller SBR Clock Buffer BMC LAN Card XO TVS TVS TVS TVS PCIe Gen3/4 Re-Driver Combo Re-Driver SATA 3.0 Signal Switch SAS2.0/ SATA3.0 ReDriver Dual/Quad Core CPU’s CPU XO Chipset DCDC / LDO Power Management Diodes Key Products $ / Server Analog 2.31 Discrete 3.41 Timing and Connectivity 23.34 Total $29.06 WW Server total shipments (Mu) Computing Platform: Server/Storage Solution
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 Supports data, video, and power Vbus Tx/Rx Tx/Rx Tx/Rx Tx/Rx D+/D- SBU1, SBU2 D+, D- CC1, CC2 PMIC AUX+/AUX- Tx/Rx Tx/Rx Tx/Rx Tx/Rx TVS 10G Type-C USB /DP ALT ReDriver TVS TVS TVS I2C TVS USB3.1G2 Application Processor USB 3.1G2/DP1.4 AUX+/AUX- USB 2.0 Tx/Rx USB 3.1G2 XTAL/ XO PD Controller / Power Switch Charger Detect USB Type-C Connector VR Switch
USB Type-C Potential Normalized to 2016 USB-C adoption to grow from 300M (2016) to 5B units (2021) - IHS Dec 2017 2021 Automotive Potential Revenue $ / Car 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 $5.29
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 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
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 Management 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 PON Power Clock PCIe Mux TVS
Industrial Controls Solutions Provider for Industrial or Embedded Applications
Complete Platform Solutions: Notebooks 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 LAN Switch MOSFET Audio Amplifier Sensor 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 DP/LAN Mux Clock Buffer ACDC External Adapter / Charger MOSFET / SBR TVS, LDO,Thyristor Bridge Rectifier TVS Thyristor Bridge Rectifier
Technology Focus Products 20Gbps ReDrivers and Switches Automotive Packet Switch for Telematics / ADAS Complete USB Type-C 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 Focus: Miniaturization and Power Efficiency ~ 2019 PDI3333-8L 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 2020 ~ 2021 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) DFN5060-4 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) SWP-DFN2020E-6 (Side-wall Plating) DFN0606-3 DFN6040-22 TSSOP-8/14/16L(EP) FC -TSOT23-6L QFN2618A-16 (Chip on Lead） PD5060-8L K (2mil wafer) SWP-PDI5060 -8L R （Dual clip） TO252-4L C HS IntelliFET (3mil Al wire) PD5060-8L S PD3333D-8L （Stack Clip） SOIC-14L-EP (Smart HS Power Switch ) TO263-6L&7L (Stack die+ Al wire) PowerDI1012S (TOLL) DFN1612B-8 (Epoxy printing) FC-QFN2030A-12 PD8080(Ribbon) CSP TSN3518 CSP PCSP0402 DFN3035A-8 （Die on CPD) (Pre-mold） SOIC-8L-EP Y (Monolithic HS IntelliFET) PD5060T-8 (High voltage) TO263-7L B QFN4050A-28 (24V/20A DCDC MCM) PD5050-31 (FC + Clip) FC-PD3333F-8 (FC + Clip) PD3025A-20 QFN2020A-18 SWP-DFN2020B-6 QFN2017A-12 SWP-DFN2020C-6 FC-DFN3020B-13 …… LGA1006A-2 (BCD) QFN3055-28
Advanced Packaging Miniaturization DDFN0402 the smallest discrete semiconductor package Miniaturization and Multi-Chip Packaging Multi-Chip Packaging Dual-Flat No-Lead (DFN) DDFN (Encapsulated CSP) Chip-Scale Package (CSP) HS IntelliFET: ZXMS3001
Packaging Efficient Manufacturing + Superior Processes Shanghai-based packaging with capacity over 34 billion units Chengdu facility has potential capacity 3X of Shanghai Additional facilities in Neuhaus, Germany and Wuxi, China China fabs in Shanghai and Wuxi, Taiwan fabs in Hsinchu and Keelung, and UK fabs in Greenock and Oldham Bipolar, BiCMOS, CMOS and BCD process Strong engineering capabilities Economies of Scale: Package Capacity & Loading Percentage in SAT & CAT *CapEx Model = 5% - 9% of Revenue billions of units Wafer Fabs
Third Quarter 2021 Financial Performance ($ in millions, except per share amounts) 3Q20 2Q21 3Q21 Net sales 309.5 440.4 471.4 Gross profit (GAAP) 111.1 159.8 181.2 Gross profit margin % (GAAP) 35.9% 36.3% 38.4% Net income (GAAP) 27.2 55.4 68.4 Net income (non-GAAP) 32.8 54.6 67.3 EPS (non-GAAP) 0.62 1.20 1.47 Cash flow from operations 39.7 93.9 98.9 EBITDA (non-GAAP) 63.3 99.4 114.5
Balance Sheet ($ in millions) Dec 31, 2019 Dec 31, 2020 Sept 30, 2021 Cash/Cash equivalents/restricted cash plus short-term investments 264 327 292 Inventory 236 307 322 Current Assets 810 1,024 1,064 Total Assets 1,639 1,980 2.042 Total Debt (L/T, S/T, Line of Credit) 111 451 252 Total Liabilities 487 963 825 Total Equity 1,153 1,016 1,217
Revenue Profile for Third Quarter 2021 By End Market 16% 24% 18% 30% 12% Industrial Computing Consumer Automotive Communications By Channel By Region 8% 80% 12% Asia Pacific Americas 66% 34% Distribution Direct Europe
Revenue to increase to ~$476 million, +/- 3.0% A record on both an organic and consolidated basis for a combined increase of about 6% sequentially at the mid-point GAAP gross margin of 38.7%, +/- 1% on a consolidated basis Non-GAAP operating expenses 21.0% of revenue, +/- 1%, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets Net Interest expense of ~$1.2 million Income tax rate to be 18%, +/- 3% Shares used to calculate diluted EPS approximately 46.2 million Purchase accounting adjustments related to amortization of acquisitions-related intangible assets of $3.4 million, after tax, for Pericom and previous acquisitions is not included in these non-GAAP estimates *Guidance as provided on November 3, 2021 Fourth Quarter 2021 Business Outlook
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
