8-K
0000029002false00000290022024-08-082024-08-08

 

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

Date of Report (Date of earliest event reported): August 08, 2024

 

 

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)

 

Registrant’s Telephone Number, Including Area Code: 972 987-3900

 

 

(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:

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))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, Par Value $0.66 2/3

 

DIOD

 

The Nasdaq Stock Market LLC

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 2.02 Results of Operations and Financial Condition.

 

On August 8, 2024, Diodes Incorporated (the “Company”) issued a press release announcing its second quarter ended June 30, 2024 financial results. A copy of the press release is furnished as Exhibit 99.1.

In the press release, the Company utilizes financial measures and terms not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”) in order to provide investors with an alternative method for assessing the Company’s operating results in a manner that enables investors to more thoroughly evaluate its current performance as compared to past performance. The Company also believes these non-GAAP measures provide investors with a more informed baseline for modeling the Company’s future financial performance. Management uses these non-GAAP measures for the same purpose. The Company believes that investors should have access to the same set of tools that management uses in analyzing results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results and may differ from similar measures used by other companies. See Exhibit 99.1 for a description and reconciliation with GAAP of the non-GAAP measures used.

The information furnished in this Item 2.02, including the exhibit incorporated by reference, will not be treated as “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. This information will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or into another filing under the Exchange Act, unless that filing expressly refers to specific information in this Report.

Item 7.01 Regulation FD Disclosure.

The press release furnished as Exhibit 99.1 also provides an update on the Company’s business outlook, that is intended to be within the safe harbor provided by the Private Securities Litigation Reform Act of 1995 (the “Act”) as comprising forward looking statements within the meaning of the Act.

The information furnished in this Item 7.01, including the exhibit incorporated by reference, will not be treated as “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. This information will not be deemed incorporated by reference into any filing under the Securities Act, or into another filing under the Exchange Act, unless that filing expressly refers to specific information in this Report.

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 August 8, 2024, are attached herewith as Exhibit 99.2 and Exhibit 99.3. Exhibit 99.2 provides an update focused on the Company's second quarter 2024 financial results and Exhibit 99.3 is used in the Company's investor relations presentations.

Forward-Looking Statements

Statements in this Current Report on Form 8-K (including in the documents attached as Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 contain 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 this Current Report on Form 8-K (including the documents attached as Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 should be regarded as “forward-looking statements” and Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 contain 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, except as required by applicable law.

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

 

 

Exhibit Number

Description

99.1

Press release dated August 8, 2024.

99.2

Second Quarter 2024 Financial Results.

99.3

Corporate slides for investor relations presentation.

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 thereunto duly authorized.

 

 

 

DIODES INCORPORATED

 

 

 

 

Date:

August 8, 2024

By:

/s/Brett R. Whitmire

 

 

 

Brett R. Whitmire
Chief Financial Officer

 


EX-99.1

Exhibit 99.1

https://cdn.kscope.io/24018fca6c08cefaf74d2115975b3bbe-img74335243_0.jpg

FINAL

 

Diodes Incorporated Reports Second Quarter Fiscal 2024 Financial Results

 

Exceeded Second Quarter Expectations with Strong Growth Anticipated

for the Third Quarter

 

 

Plano, Texas – August 8, 2024 -- Diodes Incorporated (Diodes) (Nasdaq: DIOD) today reported its financial results for the second quarter ended June 30, 2024.

 

Second Quarter Highlights

Revenue was $319.8 million, compared to $302.0 million in the first quarter 2024 and $467.2 million in the second quarter 2023;
Global Point of Sales (POS) increased over 7 percent sequentially;
GAAP gross profit was $107.4 million, compared to $99.6 million in the first quarter 2024 and $195.4 million in the second quarter 2023;
GAAP gross profit margin was 33.6 percent, compared to 33.0 percent in the first quarter 2024 and 41.8 percent in the second quarter 2023;
GAAP net income was $8.0 million, compared to $14.0 million in the first quarter 2024 and $82.0 million in the second quarter 2023;
Non-GAAP adjusted net income was $15.4 million, compared to $13.0 million in the first quarter 2024 and $73.3 million in the second quarter 2023;
GAAP EPS was $0.17 per diluted share, compared to $0.30 per diluted share in the first quarter 2024 and $1.77 per diluted share in the second quarter 2023;
Non-GAAP EPS was $0.33 per diluted share, compared to $0.28 per diluted share last quarter and $1.59 per diluted share in the prior year quarter;
Excluding GAAP and non-GAAP $3.4 million and $2.8 million, respectively, net of tax, of non-cash share-based compensation expense, GAAP and non-GAAP earnings per share would have increased by $0.07 per share and $0.06 per share, respectively;
EBITDA was $41.1 million, or 12.8 percent of revenue, compared to $48.3 million, or 16.0 percent of revenue, in the first quarter 2024 and $133.5 million, or 28.6 percent of revenue, in the second quarter 2023; and
Cash flow provided by operations was $14.4 million and a negative $3.5 million of free cash flow, including $17.9 million of capital expenditures. Net cash flow was a negative $2.9 million, including the pay-down of $22.2 million of total debt.

 

Commenting on the results, Gary Yu, President of Diodes, stated, “Second quarter results exceeded our prior expectations as Diodes’ demand began to recover from the low point in the first quarter, especially in the computing market in Asia. Additional positive indicators included improvement in distributor inventory levels with a sequential decrease in channel inventory weeks. Demand improvement during the quarter was most prominent in our computing end market, where Diodes is increasingly participating in the growth of AI servers. In fact, POS across the 3C markets increased significantly over the prior quarter, and Diodes was able to maintain automotive and industrial product revenue at 41% of total due to content increases in both markets, even though the recovery remained slow due to the ongoing inventory adjustments.


 

“As we look to the third quarter, we are guiding for strong revenue growth of over 8% at the mid-point, supported by overall POS growth of more than 7% in the second quarter. Our near-term expectation for gross margin continues to reflect factory underloading related to our wafer service agreements as well as our internal demand. However, we expect to continue margin expansion toward our target model of 40% as loading improves combined with a resumption of growth in the automotive and industrial end markets. As global demand strengthens, we remain focused on driving further operational improvements to deliver increased earnings and cash flow.”

 

Second Quarter 2024

Revenue for second quarter 2024 was $319.8 million, compared to $302.0 million in the first quarter 2024 and $467.2 million in the second quarter 2023.

 

GAAP gross profit for the second quarter 2024 was $107.4 million, or 33.6 percent of revenue, compared to $99.6 million, or 33.0 percent of revenue, in the first quarter 2024 and $195.4 million, or 41.8 percent of revenue, in the second quarter of 2023.

 

GAAP operating expenses for second quarter 2024 were $103.7 million, or 32.4 percent of revenue, and on a non-GAAP basis were $90.9 million, or 28.4 percent of revenue, which excludes an $8.3 million restructuring charge, $3.9 million amortization of acquisition-related intangible asset expenses and $0.6 million in officer retirement costs. GAAP operating expenses in the first quarter 2024 were $86.6 million, or 28.7 percent of revenue and in the second quarter 2023 were $105.8 million, or 22.7 percent of revenue.

 

Second quarter 2024 GAAP net income was $8.0 million, or $0.17 per diluted share, compared to GAAP net income in the first quarter 2024 of $14.0 million, or $0.30 per diluted share, and $82.0 million, or $1.77 per diluted share, of GAAP net income in the second quarter 2023.

 

Second quarter 2024 non-GAAP adjusted net income was $15.4 million, or $0.33 per diluted share, which excluded, net of tax, $7.2 million in restructuring charges, $3.5 million non-cash mark-to-market investment value adjustment, $3.1 million of acquisition-related intangible asset costs and $0.5 million in officer retirement costs. This compares to non-GAAP adjusted net income of $13.0 million, or $0.28 per diluted share, in the first quarter 2024 and $73.3 million, or $1.59 per diluted share, in the second quarter 2023.

 

The following is an unaudited summary reconciliation of GAAP net income to non-GAAP adjusted net income and per share data, net of tax (in thousands, except per share data):

 

 

 

 

 

Three Months Ended

 

 

 

 

 

June 30, 2024

 

GAAP net income

 

 

 

$

8,000

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

 

 

$

0.17

 

 

 

 

 

 

 

Adjustments to reconcile net income to non-GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets

 

 

 

 

3,147

 

 

 

 

 

 

 

Officer retirement

 

 

 

 

509

 

 

 

 

 

 

 

Restructuring charge

 

 

 

 

7,244

 

 

 

 

 

 

 

Non-cash mark-to-market investment value adjustments

 

 

 

 

(3,480

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

 

 

$

15,420

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

 

 

 

$

0.33

 

 


Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”

 

(See the reconciliation tables of GAAP net income to non-GAAP adjusted net income near the end of this release for further details.)

 

Included in second quarter 2024 GAAP net income and non-GAAP adjusted net income was approximately $3.4 million and $2.8 million, respectively, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, GAAP earnings per share (“EPS”) would have increased by $0.07 per share and non-GAAP adjusted EPS would have increased by $0.06 per share for the second quarter 2024, compared to $0.09 for the first quarter 2024 and $0.13 for second quarter 2023.

 

EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, in second quarter 2024 was $41.1 million, or 12.8 percent of revenue, compared to $48.3 million, or 16.0 percent of revenue, in first quarter 2024 and $133.5 million, or 28.6 percent of revenue, in second quarter 2023. For a reconciliation of GAAP net income to EBITDA, see the table near the end of this release for further details.

 

For the second quarter 2024, net cash provided by operating activities was $14.4 million. Net cash flow was a negative $2.9 million, including the pay-down of $22.2 million of total debt. Free cash flow (a non-GAAP measure) was a negative $3.5 million, which includes $17.9 million of capital expenditures.

 

Balance Sheet

As of June 30, 2024, the Company had approximately $277 million in cash and cash equivalents, restricted cash, and short-term investments. Total debt (including long-term and short-term) amounted to approximately $47 million and working capital was approximately $860 million.

 

The results announced today are preliminary and unaudited, as they are subject to the Company finalizing its closing procedures and completion of the quarterly review by its independent registered public accounting firm. As such, these results are subject to revision until the Company files its Form 10-Q for the quarter ending June 30, 2024.

 

Business Outlook

Gary Yu further commented, “For the third quarter of 2024, we expect revenue to be approximately $346 million, plus or minus 3 percent, representing an 8.2% sequential increase at the mid-point, which is the highest sequential growth in the last 14 quarters. GAAP gross margin is expected to be 34.0 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 27.5 percent of revenue, plus or minus 1 percent. We expect net interest income to be approximately $2.5 million. Our income tax rate is expected to be 18.5 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 46.6 million.”

 

Amortization of acquisition-related intangible assets of $3.1 million, after tax, for previous acquisitions is not included in these non-GAAP estimates.

 

Conference Call

Diodes will host a conference call on Thursday, August 8, 2024 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its second quarter financial results. Investors and analysts may join the conference call by dialing 1-833-634-2590, and international callers may join the teleconference by dialing +1-412-317-6038. A telephone replay of the call will be made available approximately two hours after the call and will remain available until August 15, 2024 at midnight Central Time. The replay number is 1-877-344-7529 with a pass code


of 1321163. International callers should dial +1-412-317-0088 and enter the same pass code at the prompt.

Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the Investor Relations section of the Company’s website. To listen to the live call, please go to the investors’ section of Diodes’ website and click on the conference call link at least 15 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 approximately 90 days.

 

About Diodes Incorporated

Diodes Incorporated (Nasdaq: DIOD), a Standard and Poor’s SmallCap 600 and Russell 3000 Index company, delivers high-quality semiconductor products to the world’s leading companies in the automotive, industrial, computing, consumer electronics, and communications markets. We leverage our expanded product portfolio of analog and discrete power solutions combined with leading-edge packaging technology to meet customers’ needs. Our broad range of application-specific products and solutions-focused sales, coupled with global operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-volume, high-growth markets. For more information, visit 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. Such statements include statements containing forward-looking words such as “expect,” “anticipate,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of that for the third quarter of 2024, we expect revenue to be approximately $346 million plus or minus 3 percent; we expect GAAP gross margin to be 34.0 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 27.5 percent of revenue, plus or minus 1 percent; we expect non-GAAP net interest income to be approximately $2.5 million; we expect our income tax rate to be 18.5 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 46.6 million. 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 operating costs, labor shortages, higher tax rates, and our joint venture prospects; 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.

 

The Diodes logo is a registered trademark of Diodes Incorporated in the United States and other countries.

 

© 2024 Diodes Incorporated. All Rights Reserved.

 

 


 

Company Contact: Investor Relations Contact:

Diodes Incorporated Shelton Group

Gurmeet Dhaliwal Leanne Sievers

Director, IR & Corporate Marketing President, Investor Relations

P: 408-232-9003 P: 949-224-3874

E: Gurmeet_Dhaliwal@diodes.com E: lsievers@sheltongroup.com

 


DIODES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net sales

$

319,771

 

 

$

467,152

 

 

$

621,743

 

 

$

934,393

 

Cost of goods sold

 

212,385

 

 

 

271,776

 

 

 

414,773

 

 

 

544,563

 

Gross profit

 

107,386

 

 

 

195,376

 

 

 

206,970

 

 

 

389,830

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

58,467

 

 

 

67,500

 

 

 

112,202

 

 

 

138,491

 

Research and development

 

33,189

 

 

 

34,611

 

 

 

67,153

 

 

 

67,843

 

Amortization of acquisition-related intangible assets

 

3,854

 

 

 

3,816

 

 

 

7,664

 

 

 

7,668

 

(Gain)loss on disposal of fixed assets

 

(82

)

 

 

(105

)

 

 

(4,954

)

 

 

(153

)

Restructuring charge

 

8,250

 

 

 

-

 

 

 

8,250

 

 

 

-

 

Other operating (income)expense

 

-

 

 

 

(13

)

 

 

(1

)

 

 

(13

)

Total operating expense

 

103,678

 

 

 

105,809

 

 

 

190,314

 

 

 

213,836

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

3,708

 

 

 

89,567

 

 

 

16,656

 

 

 

175,994

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

4,237

 

 

 

2,224

 

 

 

8,851

 

 

 

3,996

 

Interest expense

 

(852

)

 

 

(2,189

)

 

 

(1,384

)

 

 

(4,321

)

Foreign currency gain(loss), net

 

799

 

 

 

(2,217

)

 

 

1,771

 

 

 

(4,110

)

Unrealized gain(loss) on investments

 

4,350

 

 

 

12,172

 

 

 

4,720

 

 

 

16,061

 

Other income

 

562

 

 

 

1,398

 

 

 

996

 

 

 

1,928

 

Total other income (expense)

 

9,096

 

 

 

11,388

 

 

 

14,954

 

 

 

13,554

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes and noncontrolling interest

 

12,804

 

 

 

100,955

 

 

 

31,610

 

 

 

189,548

 

Income tax provision

 

2,643

 

 

 

17,224

 

 

 

6,180

 

 

 

33,840

 

Net income

 

10,161

 

 

 

83,731

 

 

 

25,430

 

 

 

155,708

 

Less net (income) attributable to noncontrolling interest

 

(2,161

)

 

 

(1,711

)

 

 

(3,392

)

 

 

(2,538

)

Net income attributable to common stockholders

$

8,000

 

 

$

82,020

 

 

$

22,038

 

 

$

153,170

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.17

 

 

$

1.79

 

 

$

0.48

 

 

$

3.35

 

Diluted

$

0.17

 

 

$

1.77

 

 

 

0.48

 

 

$

3.31

 

Number of shares used in earnings per share computation:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

46,133

 

 

 

45,733

 

 

 

46,083

 

 

 

45,667

 

Diluted

 

46,324

 

 

 

46,243

 

 

 

46,320

 

 

 

46,263

 

 

 

 

Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”

 


DIODES INCORPORATED AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

(in thousands, except per share data)

(unaudited)

 

For the three months ended June 30, 2024:

 

 

 

 

 

Operating Expenses

 

 

Other (Income) Expense

 

 

Income Tax Provision

 

 

Net Income

 

Per-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

$

8,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (per-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to non-GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets

 

 

 

 

3,854

 

 

 

 

 

 

(707

)

 

 

3,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Officer retirement

 

 

 

 

644

 

 

 

 

 

 

(135

)

 

 

509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring charge

 

 

 

 

8,250

 

 

 

789

 

 

 

(1,795

)

 

 

7,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash mark-to-market investment value adjustments

 

 

 

 

 

 

 

(4,350

)

 

 

870

 

 

 

(3,480

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

$

15,420

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares used in computing earnings per share

 

 

 

 

 

 

 

 

 

 

 

46,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

$

0.33

 

 

Note: Included in GAAP and non-GAAP income was approximately $3.4 million and $2.8 million respectively, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, GAAP diluted earnings per share would have improved by $0.07 per share and non-GAAP diluted earnings per share would have improved by $0.06 per share.

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIODES INCORPORATED AND SUBSIDIARIES


CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont.

(in thousands, except per share data)

(unaudited)

 

For the three months ended June 30, 2023:

 

 

 

 

Operating Expenses

 

 

Other (Income) Expense

 

 

Income Tax Provision

 

 

Net Income

 

Per-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

$

82,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (per-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

$

1.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to non-GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets

 

 

 

 

3,817

 

 

 

 

 

 

(726

)

 

 

3,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Officer retirement

 

 

 

 

(57

)

 

 

 

 

 

11

 

 

 

(46

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash mark-to-market investment value adjustments

 

 

 

 

 

 

 

(12,172

)

 

 

440

 

 

 

(11,732

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

$

73,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares used in computing earnings per share

 

 

 

 

 

 

 

 

 

 

 

46,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

$

1.59

 

 

Note: Included in GAAP and non-GAAP adjusted net income was approximately $6.0 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.13 per share.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIODES INCORPORATED AND SUBSIDIARIES


CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont.

(in thousands, except per share data)

(unaudited)

 

For the six months ended June 30, 2024:

 

 

 

 

 

 

Operating Expenses

 

 

Other (Income) Expense

 

 

Income Tax Provision

 

 

Net Income

 

Per-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

$

22,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (per-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to non-GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets

 

 

 

 

7,664

 

 

 

 

 

 

(1,406

)

 

 

6,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Officer retirement

 

 

 

 

644

 

 

 

 

 

 

(135

)

 

 

509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring charge

 

 

 

 

8,250

 

 

 

789

 

 

 

(1,795

)

 

 

7,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash mark-to-market investment value adjustments

 

 

 

 

 

 

 

(4,720

)

 

 

944

 

 

 

(3,776

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance recovery for manufacturing facility

 

 

 

 

(4,804

)

 

 

 

 

 

961

 

 

 

(3,843

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

$

28,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares used in computing earnings per share

 

 

 

 

 

 

 

 

 

 

 

46,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

$

0.61

 

 

 

Note: Included in GAAP and non-GAAP income was approximately $7.4 million and $6.8 million respectively, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, GAAP diluted earnings per share would have improved by $0.16 per share and non-GAAP diluted earnings per share would have improved by $0.15 per share.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIODES INCORPORATED AND SUBSIDIARIES


CONSOLIDATED RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME – Cont.

(in thousands, except per share data)

(unaudited)

 

For the six months ended June 30, 2023:

 

 

 

 

 

 

Operating Expenses

 

 

Other (Income) Expense

 

 

Income Tax Provision

 

 

Net Income

 

Per-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

$

153,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (per-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

$

3.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to non-GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets

 

 

 

 

7,668

 

 

 

 

 

 

(1,432

)

 

 

6,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Officer retirement

 

 

 

 

2,788

 

 

 

 

 

 

(558

)

 

 

2,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash mark-to-market investment value adjustments

 

 

 

 

 

 

 

(16,061

)

 

 

1,257

 

 

 

(14,804

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

$

146,832

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares used in computing earnings per share

 

 

 

 

 

 

 

 

 

 

 

46,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

$

3.17

 

 

 

Note: Included in GAAP and non-GAAP adjusted net income was approximately $13.7 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.30 per share.

 

 

 

 


ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

The Company’s financial statements present net income and earnings per share that are calculated using accounting principles generally accepted in the United States (“GAAP”). The Company’s management makes adjustments to the GAAP measures that it feels are necessary to allow investors and other readers of the Company’s financial releases to view the Company’s operating results as viewed by the Company’s management, board of directors and research analysts in the semiconductor industry. These non-GAAP measures are not prepared in accordance with, and should not be considered alternatives or necessarily superior to, GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names. The explanation of the adjustments made in the table above, are set forth below:

Detail of non-GAAP adjustments

Amortization of acquisition-related intangible assetsThe Company excluded this item, including amortization of developed technologies and customer relationships. The fair value of the acquisition-related intangible assets is amortized using straight-line methods which approximate the proportion of future cash flows estimated to be generated each period over the estimated useful life of the applicable assets. The Company believes that exclusion of this item is appropriate because a significant portion of the purchase price for its acquisitions was allocated to the intangible assets that have short lives and exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both the Company’s newly acquired and long-held businesses. In addition, the Company excluded this item because there is significant variability and unpredictability among companies with respect to this expense.

Officer retirement – The Company excluded costs related to the retirement of two executives. These costs represent cash payments and the accelerated vesting of previously issued stock awards. The Company feels it is appropriate to exclude these costs since they don’t represent ongoing operating expenses and will present investors with a more accurate indication of our continuing operations.

Insurance recovery for manufacturing facility – The Company recorded gains related to insurance recovery for a manufacturing facility in Asia. The Company believes the exclusion of the insurance recovery provides investors with a more accurate reflection of the continuing operations of the Company and facilitates comparisons with the results of other periods which may not reflect such gains.

Non-cash mark-to-market investment adjustments – The Company excluded mark-to-market adjustments on various equity related investments. The Company believes this is not reflective of the ongoing operations and exclusion of this provides investors an enhanced view of the Company’s operating results.

Restructuring charge – The Company recorded restructuring charges related to various locations. These restructuring charges are excluded from management’s assessment of the Company’s operating performance. The Company believes the exclusion of the restructuring charges provides investors an enhanced view of the cost structure of the Company’s operations and facilitates comparisons with the results of other periods that may not reflect such charges or may reflect different levels of such charges.

 

CASH FLOW ITEMS

Free cash flow (FCF) (Non-GAAP)

FCF for the second quarter of 2024 is a non-GAAP financial measure, which is calculated by subtracting capital expenditures from cash flow from operations. For the second quarter of 2024, FCF was a negative $3.5 million, which represents the cash and cash equivalents that we are able to generate after taking into account cash outlays required to maintain or expand property, plant and equipment. FCF is important because it allows us to pursue opportunities to develop new products, make acquisitions and reduce debt.

 

CONSOLIDATED RECONCILIATION OF NET INCOME TO EBITDA

EBITDA represents earnings before net interest expense, income tax provision, depreciation and amortization. Management believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties, such as financial institutions in extending credit, in evaluating companies in our industry and provides further clarity on our profitability. In addition, management uses EBITDA, along with other GAAP and non-GAAP measures, in evaluating our operating performance compared to that of other companies in our industry. The


calculation of EBITDA generally eliminates the effects of financing, operating in different income tax jurisdictions, and accounting effects of capital spending, including the impact of our asset base, which can differ depending on the book value of assets and the accounting methods used to compute depreciation and amortization expense. EBITDA is not a recognized measurement under 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 used by other companies. For example, our EBITDA takes into account all net interest expense, income tax provision, depreciation and amortization without taking into account any amounts attributable to noncontrolling interest. Furthermore, EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as tax and debt service payments.

The following table provides a reconciliation of net income to EBITDA (in thousands, unaudited):

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income (per-GAAP)

 

$

8,000

 

 

$

82,020

 

 

$

22,038

 

 

$

153,170

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(3,385

)

 

 

(35

)

 

 

(7,467

)

 

 

325

 

Income tax provision

 

 

2,643

 

 

 

17,224

 

 

 

6,180

 

 

 

33,840

 

Depreciation and amortization

 

 

33,794

 

 

 

34,243

 

 

 

68,649

 

 

 

67,896

 

EBITDA (non-GAAP)

 

$

41,052

 

 

$

133,452

 

 

$

89,400

 

 

$

255,231

 

 

 

 

 


DIODES INCORPORATED AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Unaudited)

 

(In thousands, except share and per share data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

264,709

 

 

$

315,457

 

Restricted Cash

 

 

2,948

 

 

 

3,026

 

Short-term investments

 

 

9,188

 

 

 

10,174

 

Accounts receivable, net of allowances of $12,133 and $5,641 at
June 30, 2024 and December 31, 2023, respectively

 

 

384,965

 

 

 

371,930

 

Inventories

 

 

461,539

 

 

 

389,774

 

Prepaid expenses and other

 

 

97,115

 

 

 

97,024

 

Total current assets

 

 

1,220,464

 

 

 

1,187,385

 

Property, plant and equipment, net

 

 

707,617

 

 

 

746,169

 

Deferred income tax

 

 

50,956

 

 

 

51,620

 

Goodwill

 

 

145,595

 

 

 

146,558

 

Intangible assets, net

 

 

57,391

 

 

 

63,937

 

Other long-term assets

 

 

179,034

 

 

 

171,990

 

Total assets

 

$

2,361,057

 

 

$

2,367,659

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Line of credit

 

$

26,343

 

 

$

40,685

 

Accounts payable

 

 

156,687

 

 

 

158,261

 

Accrued liabilities

 

 

167,436

 

 

 

179,674

 

Income tax payable

 

 

9,145

 

 

 

10,459

 

Current portion of long-term debt

 

 

1,344

 

 

 

4,419

 

Total current liabilities

 

 

360,955

 

 

 

393,498

 

Long-term debt, net of current portion

 

 

18,988

 

 

 

16,979

 

Deferred tax liabilities

 

 

9,532

 

 

 

13,662

 

Unrecognized tax benefits

 

 

34,035

 

 

 

34,035

 

Other long-term liabilities

 

 

85,971

 

 

 

99,808

 

Total liabilities

 

 

509,481

 

 

 

557,982

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Preferred stock - par value $1.00 per share; 1,000,000 shares authorized; no shares issued or outstanding

 

 

-

 

 

 

-

 

Common stock - par value $0.66 2/3 per share; 70,000,000 shares authorized; 46,146,009 and 45,938,382, issued and outstanding at June 30, 2024 and December 31, 2023, respectively

 

 

36,958

 

 

 

36,819

 

Additional paid-in capital

 

 

513,309

 

 

 

509,861

 

Retained earnings

 

 

1,697,312

 

 

 

1,675,274

 

Treasury stock, at cost, 9,287,762 and 9,286,862 shares held at June 30, 2024 and December 31, 2023

 

 

(338,052

)

 

 

(337,986

)

Accumulated other comprehensive loss

 

 

(135,172

)

 

 

(143,227

)

Total stockholders' equity

 

 

1,774,355

 

 

 

1,740,741

 

Noncontrolling interest

 

 

77,221

 

 

 

68,936

 

Total equity

 

 

1,851,576

 

 

 

1,809,677

 

Total liabilities and stockholders' equity

 

$

2,361,057

 

 

$

2,367,659

 

 


Slide 1

Diodes Incorporated (DIOD) Plano, TX, USA Second Quarter 2024 Financial Results August 8, 2024 Exhibit 99.2


Slide 2

Safe Harbor Statement 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. Such statements include statements containing forward-looking words such as “expect,” “anticipate,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of that for the third quarter of 2024, we expect revenue to be approximately $346 million plus or minus 3 percent; we expect GAAP gross margin to be 34.0 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 27.5 percent of revenue, plus or minus 1 percent; we expect non-GAAP net interest income to be approximately $2.5 million; we expect our income tax rate to be 18.5 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 46.6 million. 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 operating costs, labor shortages, higher tax rates, and our joint venture prospects; 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 August 8, 2024 titled, “Diodes Incorporated Reports Second Quarter Fiscal 2024 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.


Slide 3

About Diodes Incorporated Vision: Profitability Growth to Maximize Shareholder Value Our Core Values: Integrity, Commitment, Innovation Diodes delivers analog and discrete power solutions through its high-quality semiconductor products to the world’s leading companies in the automotive, industrial, computing, consumer electronics, and communications markets 65 Years in business 32 Consecutive years of profitability ~8400 Number of employees 1.7Bn Annual Revenue 2023 >42Bn >28K Number of products (SKU) shipped in 2023 >50K Number of customers 46% of 2023 product revenue from automotive/industrial Stock Symbol Number of units shipped in 2023 DIOD


Slide 4

Longer Term $B Corporate Objectives 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 2025+ Target: $1B Gross profit Gross Margin: 40% Revenue: $2.5B 2025+


Slide 5

Targeted Market Segment Goal Automotive Connected driving, comfort/style/safety, electrification/powertrain Industrial Embedded systems, precision controls, medical, clean energy, machine to machine, motor control, and AIoT Consumer IoT: wearables, home automation, home appliances, smart infrastructure, and charging solutions Communications Smart phones, 5G networks, and enterprise networking Computing Cloud computing: server, AI server, storage, data centers ~60% of revenue ~40% of revenue (59% for Q2 2024) (41% for Q2 2024)


Slide 6

Profitability Growth Track record of Continued Outperformance Annual Revenue Gross Profit ($ in millions) ($ in millions) CAGR: 12% (2005 – 2023) CAGR: 13% (2005 - 2023)


Slide 7

Gross Margins and EPS Gross Margins (%) Non-GAAP EPS ($) CAGR: 22% (2012 - 2023)


Slide 8

2Q FY24 Highlights Automotive and Industrial totaled 41% of product revenue, ninth consecutive quarter exceeding 2025 target model of 40% $277 million in cash and cash equivalents*; Total debt reduced $23 million to approx. $47 million * Cash and cash equivalents, restricted cash and short-term investments Revenue increased 5.9% sequentially, above mid-point of guidance Global Point of Sales (POS) increased over 7% sequentially Guiding 3Q’24 revenue to grow 8.2%, highest sequential growth in 14 quarters


Slide 9

2Q FY24 Performance $320M +5.9% Q-Q Revenue $107.4M GAAP Gross Profit +7.8% Q-Q 33.6% +60 bps Q-Q GAAP Gross Margin $0.33 +17.8% Q-Q Non-GAAP EPS $15.4M +18.5% Q-Q Non-GAAP Net Income $41.1M EBITDA 12.8% of Revenue $14.4M Cash Flow from Ops $277M/$47M Strong Balance Sheet Cash*/Debt 4.5% of Revenue * Cash and cash equivalents, restricted cash and short-term investments


Slide 10

Revenue Profile for Second Quarter 2024 By Channel Distribution Direct By Region Asia Pacific Europe Americas By End Market Computing Consumer Industrial Communications Automotive 19% 14% 26% 23% 18% 63% 37% 77% 15% 8%


Slide 11

Quarterly Performance Quarterly Gross Profit ($ Millions) Quarterly Revenue ($ Millions)


Slide 12

Income Statement – Second Quarter 2024 ($ in millions, except EPS) 2Q23 1Q24 2Q24 Net sales 467.2 302.0 319.8 Gross profit (GAAP) 195.4 99.6 107.4 Gross profit margin % (GAAP) 41.8% 33.0% 33.6% Net income (GAAP) 82 14.0 8.0 Net income (non-GAAP) 73.3 13.0 15.4 Diluted EPS (non-GAAP) 1.59 0.28 0.33 Cash flow from operations 92.6 (31.1) 14.4 EBITDA (non-GAAP) 133.5 48.3 41.1


Slide 13

Balance Sheet ($ in millions) Dec 31, 2022 Dec 31, 2023 June 30, 2024 Cash* 348 329 277 Inventory 360 390 462 Current Assets 1,162 1,187 1,220 Total Assets 2,288 2,368 2,361 Total Debt 185 62 47 Total Liabilities 705 558 509 Total Equity 1,583 1,810 1,852 * Cash and cash equivalents, restricted cash and short-term investments


Slide 14

Revenue to be ~$346 million, +/- 3.0% represents 8.2% sequential increase at the mid-point GAAP gross margin of 34%, +/- 1% Non-GAAP operating expenses 27.5% of revenue, +/- 1%, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets Net Interest income of ~$2.5 million Income tax rate to be 18.5%, +/- 3% Shares used to calculate diluted EPS approximately 46.6 million Amortization of $3.1 million, after tax, for previous acquisitions is not included in these non-GAAP estimates *Guidance as provided on August 8, 2024 Third Quarter 2024 Business Outlook


Slide 15

Investment Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20%+ operating profit Next Strategic Goal: $1B gross profit Tactics: Total system solutions sales approach and content expansion driving growth Focus on key accounts Increased focus on high-margin automotive, industrial, analog and power discrete products Investment for technology leadership in target products, fab processes, and advanced packaging Accelerate fab process and product qualifications


Slide 16

 


Slide 17

Reconciliation of Net Income to Adjusted Net Income For the three months ended June 30, 2024 (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP income was approximately $3.4 million and $2.8 million respectively, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, GAAP diluted earnings per share would have improved by $0.07 per share and non-GAAP diluted earnings per share would have improved by $0.06 per share.


Slide 18

GAAP to Non-GAAP Reconciliation For the three months ended June 30, 2023 (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP adjusted net income was approximately $6.0 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.13 per share.

Slide 1

Diodes Incorporated (DIOD Plano, TX, USA Investor Relations August 8, 2024 Exhibit 99.3


Slide 2

Safe Harbor Statement 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. Such statements include statements containing forward-looking words such as “expect,” “anticipate,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of that for the third quarter of 2024, we expect revenue to be approximately $346 million plus or minus 3 percent; we expect GAAP gross margin to be 34.0 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 27.5 percent of revenue, plus or minus 1 percent; we expect non-GAAP net interest income to be approximately $2.5 million; we expect our income tax rate to be 18.5 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 46.6 million. 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 operating costs, labor shortages, higher tax rates, and our joint venture prospects; 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 August 8, 2024 titled, “Diodes Incorporated Reports Second Quarter Fiscal 2024 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.


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Management Representative Experience: President & CEO, Diodes Incorporated (2005 – 2023) Texas Instruments 27 years Senior Vice President of TI Worldwide Analog and Logic President of Texas Instruments – Asia Education Honorary Doctorate in Engineering National Cheng Kung University Doctorate and Master's Degree in Electrical Engineering, Texas Tech University Bachelor's Degree in Engineering, National Cheng Kung University – Taiwan Dr. Keh-Shew Lu Chairman and CEO


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Gary Yu President Experience: Diodes Incorporated, since 2008 Chief Operating Officer Senior Vice President, Business Groups President, Asia Pacific Region General Manager, Shanghai Wafer Fabrication and BCD Business Unit Vice President of Asia Pacific Sales Manager, Sensor and Satellite Business Unit Lite-On Semiconductor Corporation Vice President, Worldwide Sales Texas Instruments IT, Finance and Capacity Planning Education: MBA - University of Dallas Master’s Degree in Telecommunication Engineering, Southern Methodist University Bachelor's Degree in MIS, Fu-Jen University, Taiwan Management Representative


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Company Representative Experience: Head of Corporate Marketing, Diodes Incorporated Head of Corporate Marketing, Pericom Semiconductor Vice President, Marketing, CA Technologies (Broadcom) Director, Global Marketing Strategy, EMC Director, Marketing, Zarlink Semiconductor (Microchip) Marketing Management positions at Cisco and National Semiconductor (TI) Education: MBA, Marketing/Entrepreneurship, Saint Mary's College of California BS in Electrical and Computer Engineering, UC Santa Barbara Gurmeet Dhaliwal Head of Corporate Marketing & Investor Relations


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About Diodes Incorporated Vision: Profitability Growth to Maximize Shareholder Value Our Core Values: Integrity, Commitment, Innovation Diodes delivers analog and discrete power solutions through its high-quality semiconductor products to the world’s leading companies in the automotive, industrial, computing, consumer electronics, and communications markets 65 Years in business 32 Consecutive years of profitability ~8400 Number of employees 1.7Bn Annual Revenue 2023 >42Bn >28K Number of products (SKU) shipped in 2023 >50K Number of customers 46% of 2023 product revenue from automotive/industrial Stock Symbol Number of units shipped in 2023 DIOD


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Investing for the Future 2006 2006 2012 2015 2008 2013 2019 2020 2022 Anachip Corporation Taiwan Advanced Power Devices Zetex Semiconductors Power Analog Microelectronics BCD Semiconductor Pericom Semiconductor TI’s Greenock fab (GFAB) Lite-On Semiconductor Onsemi‘s fab (SPFAB) Global Operations and World-class Manufacturing Headquartered in Plano, TX Manufacturing in US, UK, Germany, China, and Taiwan ISO 9001:2015 Certified / IATF 16949:2016 Certified ISO 14001:2015 Certified Key Acquisitions


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Global Organization Wuxi, China Shanghai, China Jhongli, Taiwan Hsinchu, Taiwan Keelung, Taiwan Taipei, 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 South, Portland, Maine Tokyo, Japan Singapore


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Our Sustainability Commitment Our commitment to a sustainable and profitable business is built around ESG Please refer to Governance and Oversight for additional details  Social (S) Governance (G) Environment (E) Climate Change Natural Resources Pollution & Waste Biodiversity Strategy & Oversight Risks Management Business Continuity Accountability & Transparency Supply Chain Product Integrity Human Capital Community


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Longer Term $B Corporate Objectives 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 2025+ Target: $1B Gross profit Gross Margin: 40% Revenue: $2.5B 2025+


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Profitability Growth Track record of Continued Outperformance Annual Revenue Gross Profit ($ in millions) ($ in millions) CAGR: 12% (2005 – 2023) CAGR: 13% (2005 - 2023)


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Gross Margins and EPS Gross Margins (%) Non-GAAP EPS ($) CAGR: 22% (2012 - 2023)


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Targeted Market Segment Goal Automotive Connected driving, comfort/style/safety, electrification/powertrain Industrial Embedded systems, precision controls, medical, clean energy, machine to machine, motor control, and AIoT Consumer IoT: wearables, home automation, home appliances, smart infrastructure, and charging solutions Communications Smart phones, 5G networks, and enterprise networking Computing Cloud computing: server, AI server, storage, data centers ~60% of revenue ~40% of revenue (59% for Q2 2024) (41% for Q2 2024)


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Key Growth Areas Automotive and Industrial Driving Growth Automotive – 28% CAGR (2013 – 2023) Focused on connected driving, comfort, style, safety, and electrification Released 130 new automotive-compliant products in Q2 2024 Increased dollar content per car to $161 Industrial – 11% CAGR (2013 – 2023) Focused on embedded systems, networked systems, automation, motor controls, sensors, power management, and IIoT Building momentum for SiC Schottky diodes and MOSFETs Expanding content in automation, security, medical, clean energy generation and energy storage systems


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Total Solutions Provider Example: Embedded System Applications


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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 / fan control Migration from Brushed to Brushless DC Motors Electrification/Powertrain Conventional Powertrain  Hybrid  Electrification Battery management Move to 48V battery Focus Applications: Automotive Revenue Growth Year 2013 – 2023 CAGR: 28% Year


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Automotive Opportunity Diodes’ Key Products $ / Car Automotive Motor Control $50.70 Connected Driving (Infotainment, Telematics & ADAS) $71.30 Powertrain, Electrification & Body Control Electronics $22.60 Lighting – Moving to LED $16.50 Total $161.20 Normalized to 2013 $ Content/Car Year


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Automotive Surround-View SuperCAM Platform Advanced Clock Gen, Clock Buffer, Crystal Oscillator, USB Power Switch, and Protection solutions for mission-critical need Automotive Compliant* Products Diodes’ Key Products $ / Box Analog >$1.20 Power Management >$0.70 MOS/BJT >$3.50 Diodes and Rectifiers >$5.00 Timing and Connectivity $14.00 Total $24.40 * AEC qualified, manufactured in IATF 16949 certified sites supporting PPAP documentation (if applicable)


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Automotive Compliant USB Charging USB charging is a high growth application with approximately 2 to 8 ports per vehicle USB PD is an important expansion capability  up to 100W/port USB-C supports DP over USB and opens up the opportunity to share portable equipment’s screen on interior display Diodes provides a system solution for USB charging including Port Controller, USB Muxes, Signal Switches, ReDrivers, Xtals, Power Management, and Protection. Automotive Compliant* product portfolio expansion is expanding the SAM further * AEC qualified, manufactured in IATF 16949 certified sites supporting PPAP documentation (if applicable) Diodes’ Key Products $ / per car Power Management $6.20 MOS/BJT $1.30 Diodes and Rectifiers $0.60 Timing and Connectivity $3.20 Total $11.30


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Industrial Content Expansion Increasing IC content in embedded systems Switching and signal path for networked systems and automation Signal conditioning and timing for precision controls Industrial / motor controls, sensors, and power management for smart meters Green power, Energy storage 2013 - 2023 CAGR: 11% Industrial Revenue Growth Net Sales Year


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IoT – Machine to Machine (M2M) Growth Opportunities: Power, Sensor, DC-DC Gate Driver, BJT, MOSFET XTAL and clock Packet switch, ReDriver, IO Expander, MIPI, and USB charging M2M – Dominated by short range technology 73% are short range, mostly Wi-Fi 2030: connections @ 29,400 million M2M – By Application IoT and M2M Modems POS, Routers, Edge Server On-Premise Edge Gateway AGV (Automated Guided Vehicle) AMR (Autonomous Mobile Robots) UAV (Unmanned Aerial Vehicle) 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 $3.50 Analog & Power Mgmt. $2.20 Timing and Connectivity $18.00 Total $23.70 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


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Cloud Computing Accelerating Enterprise Market ReDriver support for PCIe or USB connectivity Wide range of signal protocols: PCIe, CXL, SAS, SATA, USB MUX switch products for high capacity solid state storage Packet switches for accelerating AI computing Crystal oscillators for increasing clocking speeds LDOs, DCDC, SBR, and TVS for power management and protection


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Server Platform Solution Almost all of Server vendors are Diodes’ existing customers Diodes’ products are well positioned in this segment PCIe, USB, & SATA ReDrivers, Clock Buffer, Oscillator, I3C MUX, Level shifter, IO Expander, Bus Switch, QSPI MUX, Logic IC, MOSFET, LDO, TVS, DC-DC Diodes’ Key Products $ / Box Analog $6.90 Power Management $2.20 MOS/BJT $0.70 Timing and Connectivity $43.20 Total $53.00 Data Center – Blade Server


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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


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Sensor IoT Segment: Smart Home Smart Home 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 $0.55 ~ $0.80 Power Management $1.80 MOS/BJT $1.10 Diodes and Rectifiers $0.50 Timing and Connectivity $3.50 Total $7.70 AC-DC Audio Amp Wi-Fi Memory Ethernet port AC Power SoC DC-DC / LDO DC-DC / LDO Op Amp


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Communications - 5G Applications Focus Applications: Cloud Computing AI / 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, IoT Telecom: 5G CPEs Embedded/Industrial


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Communications – 5G Distributed Unit Advanced Solution in Signal Integrity, Signal/Bus/Power Switches and IO Expanders for diversified networking applications Global Logistics provide cost-competitive solution with industry standard pin-outs and flexible package options Diodes' Key Products $ / Box Analog $12.00 Power Management & Discrete $3.00 Timing and Connectivity $23.00 Total $38.00


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Complete Platform Solution: Notebook 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


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Technology Focus Products eUSB/USB repeater and Ultra Low Cj TVS for signal integrity Automotive Packet Switch for Telematics / ADAS, high voltage LDO and DCDC products Complete USB-C / Power Delivery Solutions Low jitter timing solution for cloud computing High precision high bandwidth standard analog Ultra low power and low noise LDOs for IoT Lowest RDS(ON) LDMOS for battery efficiency IntelliFET - self-protected power switches Comprehensive MOSFETs (8V to 800V) SiC Schottky Diodes and SiC MOSFET for industrial and automotive applications Cu Pillar with flip chip on lead frame High pin count BGA, LGA, and AQFN packages Chip scale packaging with highest current density Compact QFN and DFN Power density PowerDI High performance 8” MOSFET trench technology Advanced Epi bipolar transistor processes Proprietary rectifier technology Rugged automotive grade NMOS and PMOS Low power low noise SiGe BiCMOS process High voltage high power BCD process Assembly/Test Wafer Fab


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Assembly and Test Efficient Manufacturing + Superior Processes China: Shanghai, Chengdu, and Wuxi Taiwan: Jhongli Germany: Neuhaus US: South Portland, Maine China: Shanghai and Wuxi Taiwan: Hsinchu and Keelung UK: Greenock and Oldham Bipolar, BiCMOS, CMOS and BCD process Global footprint with strong engineering capabilities Wafer Fabs


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Revenue Profile for Second Quarter 2024 By Channel Distribution Direct By Region Asia Pacific Europe Americas By End Market Computing Consumer Industrial Communications Automotive 19% 14% 26% 23% 18% 63% 37% 77% 15% 8%


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Income Statement – Second Quarter 2024 ($ in millions, except EPS) 2Q23 1Q24 2Q24 Net sales 467.2 302.0 319.8 Gross profit (GAAP) 195.4 99.6 107.4 Gross profit margin % (GAAP) 41.8% 33.0% 33.6% Net income (GAAP) 82 14.0 8.0 Net income (non-GAAP) 73.3 13.0 15.4 Diluted EPS (non-GAAP) 1.59 0.28 0.33 Cash flow from operations 92.6 (31.1) 14.4 EBITDA (non-GAAP) 133.5 48.3 41.1


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Balance Sheet ($ in millions) Dec 31, 2022 Dec 31, 2023 June 30, 2024 Cash* 348 329 277 Inventory 360 390 462 Current Assets 1,162 1,187 1,220 Total Assets 2,288 2,368 2,361 Total Debt 185 62 47 Total Liabilities 705 558 509 Total Equity 1,583 1,810 1,852 * Cash and cash equivalents, restricted cash and short-term investments


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Revenue to be ~$346 million, +/- 3.0% represents 8.2% sequential increase at the mid-point GAAP gross margin of 34%, +/- 1% Non-GAAP operating expenses 27.5% of revenue, +/- 1%, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets Net Interest income of ~$2.5 million Income tax rate to be 18.5%, +/- 3% Shares used to calculate diluted EPS approximately 46.6 million Amortization of $3.1 million, after tax, for previous acquisitions is not included in these non-GAAP estimates *Guidance as provided on August 8, 2024 Third Quarter 2024 Business Outlook


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Investment Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20%+ operating profit Next Strategic Goal: $1B gross profit Tactics: Total system solutions sales approach and content expansion driving growth Focus on key accounts Increased focus on high-margin automotive, industrial, analog, and power discrete products Investment for technology leadership in target products, fab processes, and advanced packaging Accelerate fab process and product qualifications


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