DALLAS--(BUSINESS WIRE)--Dec. 11, 2008--Diodes Incorporated (Nasdaq: DIOD), a leading global manufacturer and
supplier of high-quality application specific standard products within
the broad discrete and analog semiconductor markets, today announced its
updated guidance for the fourth quarter of 2008 and the repurchase of
$46.5 million of its $230 million 2.25% Convertible Senior Notes due
2026 for approximately $23.2 million in cash.
Commenting on the updated guidance, Dr. Keh-Shew Lu, President and CEO
of Diodes Incorporated, said, "With the continued global economic
weakness and decreased demand, Diodes has updated its fourth quarter
revenue to be in the range of $88 million to $93 million. In addition to
the previously announced cost savings initiatives and due to the
continued economic decline, we have begun to initiate additional
headcount reductions in our international operations in order to reduce
our cost base even further. As a result, the Company expects fourth
quarter GAAP earnings per share to range between $0.26 and $0.31, which
includes, among other things, the repurchase of convertible debt, the
impact of the cost reductions taken previously, the one-time cost of the
additional planned headcount reductions and other required adjustments
in accordance with GAAP. The Company expects fourth quarter non-GAAP
earnings per share to range between $0.04 and $0.08."
Commenting on the notes repurchase, Dr. Lu said, "We took advantage of
our 'no net cost' loan obtained through our recent settlement with UBS
and collateralized by our $320 million auction rate securities
portfolio. Through our continuing operations as well as the previously
announced reduction in capital expenditures and other cost containment
measures, we believe we have sufficient cash flow to sustain us through
these difficult times, and we remain committed to improving the value of
Diodes through transactions such as the repurchase of our debt."
The 2.25% Convertible Senior Notes are redeemable by note holders in
October 2011 and total $183.5 million after the repurchase. Last month,
the Company entered into a settlement agreement with UBS AG which, among
other things, provides the Company the right to sell its entire $320.7
million par value-auction rate securities portfolio to UBS at 100
percent of par on June 30, 2010.
About Diodes Incorporated
Diodes Incorporated (Nasdaq: DIOD), an S&P SmallCap 600 and Russell 3000
Index company, is a leading global manufacturer and supplier of
high-quality application specific standard products within the broad
discrete and analog semiconductor markets, serving the consumer
electronics, computing, communications, industrial and automotive
markets. Diodes' products include diodes, rectifiers, transistors,
MOSFETs, protection devices, functional specific arrays, amplifiers and
comparators, Hall-effect sensors and temperature sensors, power
management devices including LED drivers, DC-DC switching regulators,
linear voltage regulators and voltage references along with special
function devices including USB power switch, load switch, voltage
supervisor and motor controllers. The Company's corporate headquarters
are located in Dallas, Texas. A sales, marketing, engineering and
logistics office is located in Westlake Village, California. Design
centers are located in Dallas; San Jose, California; Taipei, Taiwan;
Manchester, England and Neuhaus, Germany. The Company's wafer
fabrication facilities are located in Kansas City, Missouri and
Manchester; with two manufacturing facilities located in Shanghai,
China, another in Neuhaus, and a joint venture facility located in
Chengdu, China. Additional engineering, sales, warehouse and logistics
offices are located in Taipei; Hong Kong; Manchester and Munich,
Germany, with support offices located throughout the world. For further
information, including SEC filings, visit the Company's website at http://www.diodes.com.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995: Any statements set forth above that are not
historical facts are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
those in the forward-looking statements. Such statements include
statements regarding our expectation that: we expect our fourth quarter
revenue to be in the range of $88 million to $93 million; we plan to
reduce our cost base even further and will be initiating additional
headcount reductions in our international operations; we expect the
Company's fourth quarter GAAP earnings per share to range between $0.26
and $0.31 which includes the repurchase of convertible debt, the impact
of the cost reduction actions taken previously, the one-time cost of
additional planned headcount reductions and other adjustments in
accordance with GAAP; we expect the Company's fourth quarter adjusted
earnings per share to range between $0.04 and $0.08; we believe we have
sufficient cash flow to sustain us through these difficult times; we
remain committed to improving the value of Diodes through transactions
such as the repurchase of our debt. Potential risks and
uncertainties include, but are not limited to, such factors as the UBS
settlement may not provide us with the liquidity intended; we may not
realize the anticipated cost savings; we may not effect the planned
further reductions in costs or these cost containment measures may not
prove to be material; our updated guidance may be incorrect; the
Company's business strategy, the introduction and market reception to
new product announcements, fluctuations in product demand and supply,
current global economic weakness, recession and financial uncertainty,
the exclusion of the operations of Zetex from the Company's 2008
internal control over financial reporting, the process of integrating
Zetex into the Company's internal control over financial reporting,
known and unknown risks associated with the Company's Zetex acquisition,
the continue introduction of new products, the Company's ability to
maintain customer and vendor relationships, technological advancements,
impact of competitive products and pricing, growth in targeted markets,
successful integration of acquired companies and/or assets, the
Company's ability to successfully make additional acquisitions, risks of
domestic and foreign operations, the valuation of the Company's define
benefit plans, fluctuations in the United Kingdom's equity markets and
bond markets that increase the volatility in the asset value of the
Company's define benefit plans, uncertainties in the ARS market,
Company's limited liquidity from its ARS portfolio to fund the Company's
operations and acquisitions, potential losses in the Company's ARS
portfolio, UBS calling the Company's outstanding margin loan,
fluctuations in the foreign currency exchange rates, availability of tax
credits, and other information detailed from time to time in the
Company's filings with the United States Securities and Exchange
Commission.
Recent news releases, annual reports, and SEC filings are available at
the Company's website: http://www.diodes.com.
Written requests may be sent directly to the Company, or they may be
e-mailed to: diodes-fin@diodes.com.
CONTACT: Company Contact:
Diodes IncorporatedCarl Wertz, 805-446-4800
Chief Financial Officer
carl_wertz@diodes.com
or
Investor Relations Contact:
Shelton GroupLeanne K. Sievers, 949-224-3874
EVP, Investor Relations
lsievers@sheltongroup.com
Source: Diodes Incorporated
