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</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">Business </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">Combination</font></p><p style='margin-top:6.6pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:36px;">BCD Semiconductor Manufacturing Limited (&#8220;BCD&#8221;)</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;">On March </font><font style="font-family:Times New Roman;font-size:10pt;">5</font><font style="font-family:Times New Roman;font-size:10pt;">, 2013, </font><font style="font-family:Times New Roman;font-size:10pt;">the Company completed the acquisition of all the outstanding </font><font style="font-family:Times New Roman;font-size:10pt;">ordinary shares, par value $0.001 per share, of BCD (the &#8220;Shares&#8221;), including Shares represented by American Depository Shares (&#8220;ADSs&#8221;), which were cancelled in exchange for the right to receive $1.33-1/3 in cash per Share, without interest. Each ADS represented six Shares and was converted into the right to receive $8.00 in cash, without interest. The aggregate consideration was approximately $</font><font style="font-family:Times New Roman;font-size:10pt;">155</font><font style="font-family:Times New Roman;font-size:10pt;"> million</font><font style="font-family:Times New Roman;font-size:10pt;">, excluding acquisition costs, fees and expenses.</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">In addition, a </font><font style="font-family:Times New Roman;font-size:10pt;">$</font><font style="font-family:Times New Roman;font-size:10pt;">5</font><font style="font-family:Times New Roman;font-size:10pt;"> million retention plan</font><font style="font-family:Times New Roman;font-size:10pt;"> for employees of BCD</font><font style="font-family:Times New Roman;font-size:10pt;">, payable at the 12</font><font style="font-family:Times New Roman;font-size:10pt;">, 18 and 24</font><font style="font-family:Times New Roman;font-size:10pt;"> month anniversaries of the acquisition</font><font style="font-family:Times New Roman;font-size:10pt;">,</font><font style="font-family:Times New Roman;font-size:10pt;"> has been </font><font style="font-family:Times New Roman;font-size:10pt;">established</font><font style="font-family:Times New Roman;font-size:10pt;">.</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">The employee retention plan is intended to benefit the Company </font><font style="font-family:Times New Roman;font-size:10pt;">and</font><font style="font-family:Times New Roman;font-size:10pt;"> not the selling shareholders,</font><font style="font-family:Times New Roman;font-size:10pt;"> and</font><font style="font-family:Times New Roman;font-size:10pt;"> therefore has been excluded from the determination of the purchase price. </font><font style="font-family:Times New Roman;font-size:10pt;">The acquisition was funded by drawings on</font><font style="font-family:Times New Roman;font-size:10pt;"> the Company's</font><font style="font-family:Times New Roman;font-size:10pt;"> bank credit facilit</font><font style="font-family:Times New Roman;font-size:10pt;">y</font><font style="font-family:Times New Roman;font-size:10pt;">. See Note </font><font style="font-family:Times New Roman;font-size:10pt;">H</font><font style="font-family:Times New Roman;font-size:10pt;"> for additional information regarding the Company's bank credit facilit</font><font style="font-family:Times New Roman;font-size:10pt;">y</font><font style="font-family:Times New Roman;font-size:10pt;">.</font></p><p style='margin-top:6.6pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-family:Times New Roman;font-size:10pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-family:Times New Roman;font-size:10pt;">T</font><font style="font-family:Times New Roman;font-size:10pt;">he Company's purchase price </font><font style="font-family:Times New Roman;font-size:10pt;">for BCD </font><font style="font-family:Times New Roman;font-size:10pt;">and related costs are estimated as follows</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;">(in thousands)</font><font style="font-family:Times New Roman;font-size:10pt;">:</font></p><p style='margin-top: 0pt; 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margin-bottom: 0pt;'></p><p style='margin-top:12pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;">The results of operations of BCD have been included in the consolidated financial statements from March&#160;1, 2013. </font><font style="font-family:Times New Roman;font-size:10pt;">The consolidated revenue </font><font style="font-family:Times New Roman;font-size:10pt;">and earnings </font><font style="font-family:Times New Roman;font-size:10pt;">of</font><font style="font-family:Times New Roman;font-size:10pt;"> BCD for the period ended </font><font style="font-family:Times New Roman;font-size:10pt;">June 30</font><font style="font-family:Times New Roman;font-size:10pt;">, 2013 w</font><font style="font-family:Times New Roman;font-size:10pt;">ere</font><font style="font-family:Times New Roman;font-size:10pt;"> approximately $</font><font style="font-family:Times New Roman;font-size:10pt;">60</font><font style="font-family:Times New Roman;font-size:10pt;"> million</font><font style="font-family:Times New Roman;font-size:10pt;"> an</font><font style="font-family:Times New Roman;font-size:10pt;">d </font><font style="font-family:Times New Roman;font-size:10pt;">(</font><font style="font-family:Times New Roman;font-size:10pt;">$</font><font style="font-family:Times New Roman;font-size:10pt;">1)</font><font style="font-family:Times New Roman;font-size:10pt;"> m</font><font style="font-family:Times New Roman;font-size:10pt;">illion, respectively</font><font style="font-family:Times New Roman;font-size:10pt;">, which include</font><font style="font-family:Times New Roman;font-size:10pt;"> purchase price accounting adjustments</font><font style="font-family:Times New Roman;font-size:10pt;">. </font><font style="font-family:Times New Roman;font-size:10pt;">The Company's purpose </font><font style="font-family:Times New Roman;font-size:10pt;">in making </font><font style="font-family:Times New Roman;font-size:10pt;">this acquisition </font><font style="font-family:Times New Roman;font-size:10pt;">is </font><font style="font-family:Times New Roman;font-size:10pt;">to further</font><font style="font-family:Times New Roman;font-size:10pt;"> its strategy </font><font style="font-family:Times New Roman;font-size:10pt;">of</font><font style="font-family:Times New Roman;font-size:10pt;"> expand</font><font style="font-family:Times New Roman;font-size:10pt;">ing</font><font style="font-family:Times New Roman;font-size:10pt;"> its market and growth opportunities through select strategic acquisitions. 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BCD's established presence in Asia</font><font style="font-family:Times New Roman;font-size:10pt;">,</font><font style="font-family:Times New Roman;font-size:10pt;"> with a particularly strong local market position in China</font><font style="font-family:Times New Roman;font-size:10pt;">,</font><font style="font-family:Times New Roman;font-size:10pt;"> offers the Company even greater penetration of the consumer, computing and communications markets. </font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">Likewise, the Company </font><font style="font-family:Times New Roman;font-size:10pt;">believes it </font><font style="font-family:Times New Roman;font-size:10pt;">can achieve increased market penetration for BCD's products by leveraging </font><font style="font-family:Times New Roman;font-size:10pt;">the Company's</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">own </font><font style="font-family:Times New Roman;font-size:10pt;">global customer base and sales channels. </font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">In addition, BCD has in-house manufacturing capabilities in China, as well as a cost-effective development team that can be deployed across multiple product families. 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The unaudited pro forma consolidated results of operations do not include the final adjustments to net income to give the final effects to depreciation of property, plant and equipment acquired and amortization of intangible assets acquired as the Company </font><font style="font-family:Times New Roman;font-size:10pt;">currently is </font><font style="font-family:Times New Roman;font-size:10pt;">working to complete its valuation of the assets and liabilities acquired and is unable to determine those final effects. Upon completion of the valuation, the Company intends to make adjustments for these items in future pro forma disclosures for BCD. These unaudited pro forma consolidated results of operations were derived, in part, from the historical consolidated financial statements of BCD and other available information and assumptions believed to be reasonable under the circumstances.</font></p> BCD Semiconductor Manufacturing Limited (&#8220;BCD&#8221;) the Company completed the acquisition of all the outstanding ordinary shares, par value $0.001 per share, of BCD (the &#8220;Shares&#8221;), including Shares represented by American Depository Shares (&#8220;ADSs&#8221;), which were cancelled in exchange for the right to receive $1.33-1/3 in cash per Share, without interest. Each ADS represented six Shares and was converted into the right to receive $8.00 in cash, without interest. The aggregate consideration was approximately $155 million, excluding acquisition costs, fees and expenses. 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This acquisition is expected to enhance the Company&#8217;s analog product portfolio by expanding its standard linear and power management offerings, including AC/DC and DC/DC solutions for power adapters and chargers, as well as other electronic products. BCD&#8217;s established presence in Asia, with a particularly strong local market position in China, offers the Company even greater penetration of the consumer, computing and communications markets. Likewise, the Company believes it can achieve increased market penetration for BCD&#8217;s products by leveraging the Company&#8217;s own global customer base and sales channels. In addition, BCD has in-house manufacturing capabilities in China, as well as a cost-effective development team that can be deployed across multiple product families. The Company also believes it will be able to apply its packaging capabilities and expertise to BCD&#8217;s products in order to improve cost efficiencies, utilization and product mix. A final determination of the allocation of the purchase price to the assets acquired and liabilities assumed has not been completed and the following table is considered preliminary. 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Inputs used in the methodologies primarily included projected future cash flows, discounted at a rate commensurate with the risk involved. 17000000 In addition, it is not anticipated that goodwill will be deductible for income tax purposes. The following unaudited pro forma consolidated results of operations for the quarters ended June 30, 2013 and 2012 have been prepared as if the acquisition of BCD had occurred at January&#160;1, 2012, for each year The unaudited pro forma consolidated results of operations do not purport to be indicative of the results that would have been obtained if the above acquisition had actually occurred as of the dates indicated or of those results that may be obtained in the future. The unaudited pro forma consolidated results of operations do not include the final adjustments to net income to give the final effects to depreciation of property, plant and equipment acquired and amortization of intangible assets acquired as the Company currently is working to complete its valuation of the assets and liabilities acquired and is unable to determine those final effects. Upon completion of the valuation, the Company intends to make adjustments for these items in future pro forma disclosures for BCD. These unaudited pro forma consolidated results of operations were derived, in part, from the historical consolidated financial statements of BCD and other available information and assumptions believed to be reasonable under the circumstances. The Company evaluated and adjusted the acquired inventory for a reasonable profit allowance, which is intended to permit the Company to report only the profits normally associated with its activities following the acquisition as it relates to the work-in-progress and finished goods inventory. 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text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">44,730</font></td><td style="width: 31px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:31px;">&#160;</td><td style="width: 16px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">30,564</font></td></tr><tr style="height: 17px"><td style="width: 133px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:133px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;">Finished goods</font></td><td style="width: 31px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:31px;">&#160;</td><td style="width: 16px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">72,288</font></td><td style="width: 31px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:31px;">&#160;</td><td style="width: 16px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">59,319</font></td></tr><tr style="height: 20px"><td style="width: 133px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:133px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;">Total</font></td><td style="width: 31px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:31px;">&#160;</td><td style="width: 16px; 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margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0px;">NOTE </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">G</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;"> &#8211; Goodwill and Intangible Assets</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;">Changes in goodwill are as follows </font><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;">(in thousands):</font></p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 239px; text-align:left;border-color:#000000;min-width:239px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;">Balance at December 31, 2012</font></td><td style="width: 16px; 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margin-bottom: 0pt;'></p><p style='margin-top:12pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;">I</font><font style="font-family:Times New Roman;font-size:10pt;">ntangible assets are</font><font style="font-family:Times New Roman;font-size:10pt;"> as follows</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;">(in thousands):</font></p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 229px; text-align:left;border-color:#000000;min-width:229px;">&#160;</td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td colspan="2" style="width: 79px; text-align:center;border-color:#000000;min-width:79px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">June 30,</font></td><td style="width: 14px; text-align:center;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:center;border-color:#000000;min-width:14px;">&#160;</td><td colspan="2" style="width: 79px; text-align:center;border-color:#000000;min-width:79px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">December 31,</font></td></tr><tr style="height: 17px"><td style="width: 229px; text-align:left;border-color:#000000;min-width:229px;">&#160;</td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td colspan="2" style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2013</font></td><td style="width: 14px; text-align:center;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:center;border-color:#000000;min-width:14px;">&#160;</td><td colspan="2" style="width: 79px; 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border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 65px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:65px;">&#160;</td></tr><tr style="height: 17px"><td style="width: 229px; text-align:left;border-color:#000000;min-width:229px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;"> Gross carrying amount</font></td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td style="width: 14px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 65px; text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 86,909</font></td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; 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text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 65px; text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (24,161)</font></td></tr><tr style="height: 17px"><td style="width: 229px; text-align:left;border-color:#000000;min-width:229px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;"> Currency exchange</font></td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td style="width: 14px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 65px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (7,889)</font></td><td style="width: 14px; 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text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; border-top-style:solid;border-top-width:2px;border-bottom-style:double;border-bottom-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 65px; border-top-style:solid;border-top-width:2px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 44,337</font></td></tr></table></div><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><p style='margin-top:12pt; margin-bottom:0pt'><font style="font-family:CG Times;font-size:10pt;margin-left:36px;">Amortization expense related to intangible assets subject to </font><font style="font-family:CG Times;font-size:10pt;">amortization was </font><font style="font-family:CG Times;font-size:10pt;">approximately $2 million and $1 million for the three months ended June 30, 3013 and 2012, respectively, and </font><font style="font-family:CG Times;font-size:10pt;">approximately </font><font style="font-family:CG Times;font-size:10pt;">$</font><font style="font-family:CG Times;font-size:10pt;">4</font><font style="font-family:CG Times;font-size:10pt;"> million </font><font style="font-family:CG Times;font-size:10pt;">and $</font><font style="font-family:CG Times;font-size:10pt;">2</font><font style="font-family:CG Times;font-size:10pt;"> million </font><font style="font-family:CG Times;font-size:10pt;">for</font><font style="font-family:CG Times;font-size:10pt;"> the</font><font style="font-family:CG Times;font-size:10pt;"> </font><font style="font-family:CG Times;font-size:10pt;">six</font><font style="font-family:CG Times;font-size:10pt;"> months ended </font><font style="font-family:CG Times;font-size:10pt;">June 30</font><font style="font-family:CG Times;font-size:10pt;">, 20</font><font style="font-family:CG Times;font-size:10pt;">1</font><font style="font-family:CG Times;font-size:10pt;">3</font><font style="font-family:CG Times;font-size:10pt;"> and 20</font><font style="font-family:CG Times;font-size:10pt;">1</font><font style="font-family:CG Times;font-size:10pt;">2</font><font style="font-family:CG Times;font-size:10pt;">, respectively</font><font style="font-family:Times New Roman;font-size:10pt;">.</font></p> -3318000 <div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 239px; 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text-align:center;border-color:#000000;min-width:79px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">December 31,</font></td></tr><tr style="height: 17px"><td style="width: 229px; text-align:left;border-color:#000000;min-width:229px;">&#160;</td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td colspan="2" style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2013</font></td><td style="width: 14px; text-align:center;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:center;border-color:#000000;min-width:14px;">&#160;</td><td colspan="2" style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2012</font></td></tr><tr style="height: 17px"><td style="width: 229px; 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text-align:left;border-color:#000000;min-width:229px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;"> Gross carrying amount</font></td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td style="width: 14px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 65px; text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 86,909</font></td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 65px; text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 69,707</font></td></tr><tr style="height: 17px"><td style="width: 229px; text-align:left;border-color:#000000;min-width:229px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;"> Accumulated amortization</font></td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td style="width: 14px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 65px; text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (28,369)</font></td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 65px; text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (24,161)</font></td></tr><tr style="height: 17px"><td style="width: 229px; text-align:left;border-color:#000000;min-width:229px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;"> Currency exchange</font></td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td style="width: 14px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 65px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (7,889)</font></td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 14px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 65px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (7,051)</font></td></tr><tr style="height: 17px"><td style="width: 229px; text-align:left;border-color:#000000;min-width:229px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;"> Net value</font></td><td style="width: 40px; text-align:left;border-color:#000000;min-width:40px;">&#160;</td><td style="width: 14px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 65px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:65px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 50,651</font></td><td style="width: 14px; 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text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 11px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 15px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 75px; 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text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; border-top-style:solid;border-top-width:2px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 15px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 75px; border-top-style:solid;border-top-width:2px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 75px; border-top-style:solid;border-top-width:2px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td></tr><tr style="height: 16px"><td style="width: 236px; text-align:center;background-color:#FFFFFF;border-color:#000000;min-width:236px;">&#160;</td><td style="width: 11px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 11px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 15px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 75px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; 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text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"> 391,343</font></td></tr><tr style="height: 17px"><td style="width: 236px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:236px;">&#160;</td><td style="width: 11px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 11px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 15px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td></tr><tr style="height: 17px"><td style="width: 236px; 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text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 75px; border-top-style:double;border-top-width:3px;border-bottom-style:double;border-bottom-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 9pt;COLOR: #000000;TEXT-ALIGN: right;"> 1,171,574</font></td></tr><tr style="height: 17px"><td style="width: 236px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:236px;">&#160;</td><td style="width: 11px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 11px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 15px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td></tr><tr style="height: 16px"><td style="width: 236px; text-align:left;border-color:#000000;min-width:236px;">&#160;</td><td style="width: 11px; text-align:right;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 11px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:11px;">&#160;</td><td style="width: 75px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 15px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 75px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:75px;">&#160;</td><td style="width: 13px; text-align:right;background-color:#FFFFFF;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 13px; 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text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:89px;">&#160;</td><td style="width: 15px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:12px;">&#160;</td><td colspan="4" style="width: 182px; text-align:center;background-color:#FFFFFF;border-color:#000000;min-width:182px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">for the Three Months</font></td><td style="width: 43px; text-align:left;background-color:#FFFFFF;border-color:#000000;min-width:43px;">&#160;</td><td colspan="3" style="width: 149px; text-align:center;background-color:#FFFFFF;border-color:#000000;min-width:149px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">Percentage of</font></td></tr><tr style="height: 21px"><td style="width: 89px; 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Based on information available, the Company evaluates the likelihood of potential outcomes. The Company records the appropriate liability when the amount is deemed probable and reasonably estimable. 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Del. filed Mar. 5, 2013), on behalf of the Company against its directors, in which plaintiff alleges that (a)&#160;the Board approved awards of stock options to Dr.&#160;</font><font style="font-family:Times New Roman;font-size:10pt;">Keh-Shew</font><font style="font-family:Times New Roman;font-size:10pt;"> Lu, our President and Chief Executive Officer, in 2009, 2010, 2011 and 2012 that exceeded the limitation on the number of shares of the Company's Common Stock that may be purchased upon the exercise of options granted to any person in any given year under the Company's 2001 </font><font style="font-family:Times New Roman;font-size:10pt;">Omnibus Equity </font><font style="font-family:Times New Roman;font-size:10pt;">Incentive Plan as amended by the stockholders on May&#160;28, 2009; (b)&#160;the Company's disclosures in its 2010, 2011 and 2012 proxy statements regarding the limitation on the number of shares of the Company's Common Stock that may be purchased upon the exercise of options granted to any person in any given year under the Company's 2001 </font><font style="font-family:Times New Roman;font-size:10pt;">Omnibus Equity</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">Incentive Plan as amended by the stockholders on May&#160;28, 2009 were inaccurate; and (c)&#160;the Company's disclosures in its 2010, 2011 and 2012 proxy statements that the grants of stock options to Dr.&#160;Lu in 2009, 2010, 2011 and 2012 complied with the terms of the Company's 2001 </font><font style="font-family:Times New Roman;font-size:10pt;">Omnibus Equity</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">Incentive Plan as amended by the stockholders on May&#160;28, 2009 were incorrect. The Compensation Committee reviewed the grants of stock options to Dr.&#160;Lu in 2009, 2010, 2011 and 2012 (each such annual grant, an &#8220;Option Grant&#8221;), and approved a Confirmation Agreement, dated April&#160;1, 2013, in which the Company and Dr.&#160;Lu agree and confirm that Dr.&#160;Lu will assert no claim that any Option Grant in 2009, 2010, 2011 or 2012 provided for the purchase of more than 100,000 shares of the Company's Common Stock, and that each Option Grant document be deemed amended to reflect the foregoing 100,000 share limitation. On April 3, 2013, defendants and the Company filed answers to the complaint. On May 8, 2013, defendants filed a motion for judgment on the pleadings dismissing the action on the ground that the claims are moot. </font><font style="font-family:Times New Roman;font-size:10pt;">On June 24, 2013, the Court approved the parties' stipulation providing for the withdrawal of the motion for judgment on the pleadings and the dismissal of the action as moot upon the filing and adjudication of plaintiff's motion for an award of attorney's fees and costs. </font><font style="font-family:Times New Roman;font-size:10pt;">On July 29, 2013, plaintiff filed a motion for an award of attorneys' fees and costs. The Company intends to oppose plaintiff's motion vigorously. No hearing date has been set for this motion</font><font style="font-family:Times New Roman;font-size:10pt;">.</font></p><p style='margin-top:0pt; margin-bottom:10pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;">The Company is </font><font style="font-family:Times New Roman;font-size:10pt;">also currently a party to </font><font style="font-family:Times New Roman;font-size:10pt;">a </font><font style="font-family:Times New Roman;font-size:10pt;">putative securities class action in the United States District Court for the Eastern District of Texas, entitled </font><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;">Local 731 I.B. of T. Excavators and Pavers Pension Trust Fund v. Diodes, Inc.</font><font style="font-family:Times New Roman;font-size:10pt;">, Civil Action No. 6:13-cv-247 (E.D. Tex. filed Mar. 15, 2013), against the Company, Dr. Lu and Richard </font><font style="font-family:Times New Roman;font-size:10pt;">D. </font><font style="font-family:Times New Roman;font-size:10pt;">White, in which plaintiff, purportedly on behalf of a class of investo</font><font style="font-family:Times New Roman;font-size:10pt;">rs who purchased the Company's C</font><font style="font-family:Times New Roman;font-size:10pt;">ommon </font><font style="font-family:Times New Roman;font-size:10pt;">S</font><font style="font-family:Times New Roman;font-size:10pt;">tock between February 9, 2011 and June 9, 2011, alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 promulgated </font><font style="font-family:Times New Roman;font-size:10pt;">thereunder</font><font style="font-family:Times New Roman;font-size:10pt;"> in connection with allegedly public statements made during the class period regarding the labor market in China and its impact on the Company's business and prospects. Pursuant to the Private Securities Litigation Reform Act of 1995 (&#8220;Reform Act&#8221;), motions for appointment of lead plaintiff are due to be filed by May 14, 2013. Pursuant to the Court's order dated April 26, 2013, (1) in the event the putative class member ultimately appointed as lead plaintiff wishes to file an amended complaint, lead plaintiff shall do so no later than forty-five (45) days after entry of an order appointing the lead plaintiff; (2) no later than fifteen (15) days after entry of an order appointing the lead plaintiff, lead plaintiff must file a notice with the Court indicating whether it will file an amended complaint; (3) </font><font style="font-family:Times New Roman;font-size:10pt;">d</font><font style="font-family:Times New Roman;font-size:10pt;">efendants shall file an answer or motion directed to the operative complaint in this action no later than forty-five (45) days after service of an </font><font style="font-family:Times New Roman;font-size:10pt;">amended complaint or notice of lead p</font><font style="font-family:Times New Roman;font-size:10pt;">laintiff's decision not to file an amended complaint, as applicable; and (4) in the event defendants file a motion or motions directed to the operative comp</font><font style="font-family:Times New Roman;font-size:10pt;">laint in this action, (</font><font style="font-family:Times New Roman;font-size:10pt;">i</font><font style="font-family:Times New Roman;font-size:10pt;">) lead p</font><font style="font-family:Times New Roman;font-size:10pt;">laintiff shall file his, her or its opposition, if any, within forty</font><font style="font-family:Times New Roman;font-size:10pt;">-</font><font style="font-family:Times New Roman;font-size:10pt;">five (45) days after serv</font><font style="font-family:Times New Roman;font-size:10pt;">ice of such motion(s) and (ii) d</font><font style="font-family:Times New Roman;font-size:10pt;">efendants shall file their reply, if any, within thirty (</font><font style="font-family:Times New Roman;font-size:10pt;">30) days after service of lead p</font><font style="font-family:Times New Roman;font-size:10pt;">laintiff's opposition. </font><font style="font-family:Times New Roman;font-size:10pt;">On June 14, 2013, the Court entered an order appointing Local 731 I.B. of T. Excavators and Pavers Pension Trust Fund as lead plaintiff and approved lead plaintiff's selection of Robbins Geller Rudman &amp; Dowd as lead plaintiff's counsel and the Ward &amp; Smith Law Firm as lead plaintiff's liaison counsel.</font><font style="font-family:Times New Roman;font-size:10pt;"> On August 1, 2013, lead plaintiff filed an amended complaint reiterating the same claims for relief against the same defendants as asserted in the original complaint. The deadline for defendants to move against or otherwise respond to the amended complaint is September 16, 2013. </font><font style="font-family:Times New Roman;font-size:10pt;">Pursuant to the Reform Act, all discovery and other proceedings are stayed pending a ruling on any motion to dismiss</font><font style="font-family:Times New Roman;font-size:10pt;">. The defendants intend to defend this action vigorously</font><font style="font-family:Times New Roman;font-size:10pt;">.</font></p> During 2010, the Company entered into an investment agreement with the Management Committee of the Chengdu Hi-Tech Industrial Development Zone (the &#8220;CDHT&#8221;). Under this agreement, the Company agreed to form a joint venture with a Chinese partner, Chengdu Ya Guang Electronic Company Limited, to establish a semiconductor manufacturing facility for surface-mounted component production, assembly and test in Chengdu, China. This is a long-term, multi-year project that will provide additional capacity for the Company as needed. In order to qualify for certain financial incentives, the Company is obligated to contribute approximately $48 million to the joint venture by December 31, 2013. Contingencies - From time to time, the Company may be involved in a variety of legal matters that arise in the normal course of business. Based on information available, the Company evaluates the likelihood of potential outcomes. The Company records the appropriate liability when the amount is deemed probable and reasonably estimable. In addition, the Company does not accrue for estimated legal fees and other directly related costs as they are expensed as incurred. The Company is currently a party to a purported stockholder derivative action in the United States District Court for the District of Delaware, entitled Scherer v. Keh-Shew Lu, Civil Action No.&#160;1:13-cv-00358-UNA (D. Del. filed Mar. 5, 2013), on behalf of the Company against its directors, in which plaintiff alleges that (a)&#160;the Board approved awards of stock options to Dr.&#160;Keh-Shew Lu, our President and Chief Executive Officer, in 2009, 2010, 2011 and 2012 that exceeded the limitation on the number of shares of the Company&#8217;s Common Stock that may be purchased upon the exercise of options granted to any person in any given year under the Company&#8217;s 2001 Omnibus Equity Incentive Plan as amended by the stockholders on May&#160;28, 2009; (b)&#160;the Company&#8217;s disclosures in its 2010, 2011 and 2012 proxy statements regarding the limitation on the number of shares of the Company&#8217;s Common Stock that may be purchased upon the exercise of options granted to any person in any given year under the Company&#8217;s 2001 Omnibus Equity Incentive Plan as amended by the stockholders on May&#160;28, 2009 were inaccurate; and (c)&#160;the Company&#8217;s disclosures in its 2010, 2011 and 2012 proxy statements that the grants of stock options to Dr.&#160;Lu in 2009, 2010, 2011 and 2012 complied with the terms of the Company&#8217;s 2001 Omnibus Equity Incentive Plan as amended by the stockholders on May&#160;28, 2009 were incorrect. The Compensation Committee reviewed the grants of stock options to Dr.&#160;Lu in 2009, 2010, 2011 and 2012 (each such annual grant, an &#8220;Option Grant&#8221;), and approved a Confirmation Agreement, dated April&#160;1, 2013, in which the Company and Dr.&#160;Lu agree and confirm that Dr.&#160;Lu will assert no claim that any Option Grant in 2009, 2010, 2011 or 2012 provided for the purchase of more than 100,000 shares of the Company&#8217;s Common Stock, and that each Option Grant document be deemed amended to reflect the foregoing 100,000 share limitation. On April 3, 2013, defendants and the Company filed answers to the complaint. On May 8, 2013, defendants filed a motion for judgment on the pleadings dismissing the action on the ground that the claims are moot. On June 24, 2013, the Court approved the parties&#8217; stipulation providing for the withdrawal of the motion for judgment on the pleadings and the dismissal of the action as moot upon the filing and adjudication of plaintiff&#8217;s motion for an award of attorney&#8217;s fees and costs. On July 29, 2013, plaintiff filed a motion for an award of attorneys&#8217; fees and costs. The Company intends to oppose plaintiff&#8217;s motion vigorously. No hearing date has been set for this motion. The Company is also currently a party to a putative securities class action in the United States District Court for the Eastern District of Texas, entitled Local 731 I.B. of T. Excavators and Pavers Pension Trust Fund v. Diodes, Inc., Civil Action No. 6:13-cv-247 (E.D. Tex. filed Mar. 15, 2013), against the Company, Dr. Lu and Richard D. White, in which plaintiff, purportedly on behalf of a class of investors who purchased the Company&#8217;s Common Stock between February 9, 2011 and June 9, 2011, alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 promulgated thereunder in connection with allegedly public statements made during the class period regarding the labor market in China and its impact on the Company&#8217;s business and prospects. Pursuant to the Private Securities Litigation Reform Act of 1995 (&#8220;Reform Act&#8221;), motions for appointment of lead plaintiff are due to be filed by May 14, 2013. Pursuant to the Court&#8217;s order dated April 26, 2013, (1) in the event the putative class member ultimately appointed as lead plaintiff wishes to file an amended complaint, lead plaintiff shall do so no later than forty-five (45) days after entry of an order appointing the lead plaintiff; (2) no later than fifteen (15) days after entry of an order appointing the lead plaintiff, lead plaintiff must file a notice with the Court indicating whether it will file an amended complaint; (3) defendants shall file an answer or motion directed to the operative complaint in this action no later than forty-five (45) days after service of an amended complaint or notice of lead plaintiff&#8217;s decision not to file an amended complaint, as applicable; and (4) in the event defendants file a motion or motions directed to the operative complaint in this action, (i) lead plaintiff shall file his, her or its opposition, if any, within forty-five (45) days after service of such motion(s) and (ii) defendants shall file their reply, if any, within thirty (30) days after service of lead plaintiff&#8217;s opposition. On June 14, 2013, the Court entered an order appointing Local 731 I.B. of T. Excavators and Pavers Pension Trust Fund as lead plaintiff and approved lead plaintiff&#8217;s selection of Robbins Geller Rudman & Dowd as lead plaintiff&#8217;s counsel and the Ward & Smith Law Firm as lead plaintiff&#8217;s liaison counsel. On August 1, 2013, lead plaintiff filed an amended complaint reiterating the same claims for relief against the same defendants as asserted in the original complaint. The deadline for defendants to move against or otherwise respond to the amended complaint is September 16, 2013. Pursuant to the Reform Act, all discovery and other proceedings are stayed pending a ruling on any motion to dismiss. The defendants intend to defend this action vigorously. 48000000 12000000 25000000 21000000 <p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0px;">NOTE </font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;">M</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;"> &#8211; Employee Benefit Plans</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0px;">Defined Benefit Plan</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:36px;">The Company has a contributory defined benefit plan that covers certain employees in the United Kingdom (&#8220;U.K.&#8221;). 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margin-bottom: 0pt;'></p><p style='margin-top:12pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:36px;">Keylink</font><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;"> International (B.V.I.) 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The Company also pays</font><font style="font-family:Times New Roman;font-size:10pt;"> a consulting fee to </font><font style="font-family:Times New Roman;font-size:10pt;">Keylink</font><font style="font-family:Times New Roman;font-size:10pt;">. </font><font style="font-family:Times New Roman;font-size:10pt;">The aggregate amounts for these services f</font><font style="font-family:Times New Roman;font-size:10pt;">or the </font><font style="font-family:Times New Roman;font-size:10pt;">six</font><font style="font-family:Times New Roman;font-size:10pt;"> months ended </font><font style="font-family:Times New Roman;font-size:10pt;">June 30</font><font style="font-family:Times New Roman;font-size:10pt;">, 20</font><font style="font-family:Times New Roman;font-size:10pt;">1</font><font style="font-family:Times New Roman;font-size:10pt;">3</font><font style="font-family:Times New Roman;font-size:10pt;"> and 201</font><font style="font-family:Times New Roman;font-size:10pt;">2</font><font style="font-family:Times New Roman;font-size:10pt;"> were</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">approximately </font><font style="font-family:Times New Roman;font-size:10pt;">$</font><font style="font-family:Times New Roman;font-size:10pt;">9 million and $</font><font style="font-family:Times New Roman;font-size:10pt;">8</font><font style="font-family:Times New Roman;font-size:10pt;"> million</font><font style="font-family:Times New Roman;font-size:10pt;">, respectively</font><font style="font-family:Times New Roman;font-size:10pt;">.</font><font style="font-family:Times New Roman;font-size:10pt;"> </font></p><p style='margin-top:0pt; 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text-align:right;border-color:#000000;min-width:90px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 7,531</font></td><td style="width: 26px; text-align:right;border-color:#000000;min-width:26px;">&#160;</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 90px; text-align:right;border-color:#000000;min-width:90px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 5,308</font></td></tr><tr style="height: 17px"><td style="width: 278px; text-align:left;border-color:#000000;min-width:278px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;">Keylink</font></td><td style="width: 26px; text-align:right;border-color:#000000;min-width:26px;">&#160;</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 90px; 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text-align:left;border-color:#000000;min-width:110px;">&#160;</td><td style="width: 18px; text-align:left;border-color:#000000;min-width:18px;">&#160;</td><td colspan="4" style="width: 170px; border-bottom-style:solid;border-bottom-width:2px;text-align:center;border-color:#000000;min-width:170px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">June 30, </font></td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 23px; text-align:left;border-color:#000000;min-width:23px;">&#160;</td><td colspan="4" style="width: 170px; border-bottom-style:solid;border-bottom-width:2px;text-align:center;border-color:#000000;min-width:170px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">June 30,</font></td></tr><tr style="height: 18px"><td style="width: 110px; text-align:left;border-color:#000000;min-width:110px;">&#160;</td><td style="width: 18px; text-align:left;border-color:#000000;min-width:18px;">&#160;</td><td style="width: 64px; border-top-style:solid;border-top-width:2px;border-bottom-style:solid;border-bottom-width:2px;text-align:center;border-color:#000000;min-width:64px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2013</font></td><td style="width: 26px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:26px;">&#160;</td><td style="width: 16px; border-top-style:solid;border-top-width:2px;text-align:left;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 64px; border-top-style:solid;border-top-width:2px;border-bottom-style:solid;border-bottom-width:2px;text-align:center;border-color:#000000;min-width:64px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2012</font></td><td style="width: 14px; text-align:left;border-color:#000000;min-width:14px;">&#160;</td><td style="width: 23px; text-align:left;border-color:#000000;min-width:23px;">&#160;</td><td style="width: 64px; border-top-style:solid;border-top-width:2px;border-bottom-style:solid;border-bottom-width:2px;text-align:center;border-color:#000000;min-width:64px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2013</font></td><td style="width: 19px; border-top-style:solid;border-top-width:2px;text-align:center;border-color:#000000;min-width:19px;">&#160;</td><td style="width: 23px; border-top-style:solid;border-top-width:2px;text-align:left;border-color:#000000;min-width:23px;">&#160;</td><td style="width: 64px; border-top-style:solid;border-top-width:2px;border-bottom-style:solid;border-bottom-width:2px;text-align:center;border-color:#000000;min-width:64px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2012</font></td></tr><tr style="height: 17px"><td style="width: 110px; text-align:left;border-color:#000000;min-width:110px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;">Net sales</font></td><td style="width: 18px; 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text-align:right;border-color:#000000;min-width:26px;">&#160;</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 90px; border-top-style:double;border-top-width:3px;text-align:right;border-color:#000000;min-width:90px;">&#160;</td></tr><tr style="height: 17px"><td style="width: 278px; text-align:left;border-color:#000000;min-width:278px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;">LSC</font></td><td style="width: 26px; text-align:right;border-color:#000000;min-width:26px;">&#160;</td><td style="width: 16px; text-align:right;border-color:#000000;min-width:16px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 90px; text-align:right;border-color:#000000;min-width:90px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 7,531</font></td><td style="width: 26px; text-align:right;border-color:#000000;min-width:26px;">&#160;</td><td style="width: 16px; 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