Diodes Incorporated Reports Fourth Quarter and Fiscal 2020 Financial Results
Record Organic Revenue Driven By Market Share Gains and Record Automotive and Pericom Products Revenue
PLANO, Texas–(BUSINESS WIRE)–Diodes Incorporated (Nasdaq: DIOD) today reported its financial results for the fourth quarter and fiscal year ended December 31, 2020.
Fourth Quarter Highlights
- Completed the acquisition of Lite-On Semiconductor (LSC) on November 30, with initial purchase accounting and financing cost adjustments included in the fourth quarter 2020 GAAP results;
- Revenue was a record $350.4 million, which included $16.9 million of one month of revenue from LSC, and compares to $301.2 million in the fourth quarter 2019;
- GAAP gross profit was a record $122.7 million, which included $2.5 million from LSC, as compared to $109.4 million in the fourth quarter 2019;
- GAAP gross profit margin was 35.0 percent, or 36.0 percent for Diodes only, as compared to 36.3 percent in the fourth quarter 2019;
- GAAP net income was $29.7 million, or $0.59 per diluted share, which included $0.03 from LSC, as compared to $47.2 million, or $0.90 per diluted share, in the fourth quarter 2019;
- Non-GAAP adjusted net income was $37.3 million, or $0.74 per diluted share, which included $0.02 from LSC, as compared to $33.8 million, or $0.65 per diluted share, in the fourth quarter 2019;
- Excluding $5.1 million, net of tax, of non-cash share-based compensation expense, both GAAP and non-GAAP earnings per share would have increased by $0.10 per diluted share;
- EBITDA was $67.1 million, or 19.1 percent of revenue, compared to $88.3 million, or 29.3 percent of revenue, in the fourth quarter 2019, which included a $19.2 million gain on land sales; and
- Achieved cash flow from operations of 60.8 million and $33.5 million free cash flow, including $27.3 million of capital expenditures. Net cash flow was a negative $319.3 million, which included the purchase of Lite-On Semiconductor during the quarter for approximately $453.4 million.
Commenting on the results, Dr. Keh-Shew Lu, Chairman, President and Chief Executive Officer, stated, “We ended the year achieving the highest quarterly revenue in the Company’s history, even when excluding the revenue contribution from our acquisition of Lite-On Semiconductor that closed on November 30th. Total organic revenue grew 7.8% sequentially and 10.7% year-over-year, demonstrating the continued success of our product, content and customer expansion initiatives. Revenue from our Pericom products and automotive market also reached record levels, with automotive revenue growing 24 percent sequentially and 40 percent year-over-year, both of which contributed to our solid market share gains in the quarter. All of these accomplishments are notable achievements especially considering the ongoing global pandemic.
“Further, the LSC business was immediately accretive to our results, adding $0.02 per share on a non-GAAP basis in the fourth quarter, while also offering future opportunities for synergistic growth and expansion across our end markets, product offerings, customers and manufacturing footprint. In addition to these synergies we expect to achieve, the repurchase of 14.7% of Diodes shares that were previously held by LSC will drive additional earnings power when combined with Diodes solid operating leverage.
“As we look to the first quarter, we expect to further extend this strong momentum and once again set a new revenue and gross profit record, with sequential growth projected both organically and on a consolidated basis in what has previously been a seasonally down quarter for our business. This anticipated growth is being driven by record point of sale (POS) revenue in the fourth quarter. We look forward to reporting our ongoing progress and remain focused on integrating the LSC business, while capitalizing on the long-term opportunities for continued growth and earnings expansion.”
Fourth Quarter 2020
Revenue for fourth quarter 2020 was a record $350.4 million, which included $16.9 million of one month of revenue from LSC, compared to $301.2 million in the fourth quarter 2019 and $309.5 million in the third quarter 2020. Sequentially, revenue increased 13.2 percent on a consolidated basis and 7.8 percent on an organic basis.
GAAP gross profit for the fourth quarter 2020 was a record $122.7 million and included $2.5 million from LSC, or 35.0 percent of revenue on a consolidated basis and 36.0 percent for Diodes only. This compares to the fourth quarter 2019 of $109.4 million, or 36.3 percent of revenue, and the third quarter 2020 of $111.1 million, or 35.9 percent of revenue.
GAAP operating expenses for fourth quarter 2020 were $82.9 million, or 23.7 percent of revenue, and on a non-GAAP basis were $75.1 million, or 21.4 percent of revenue, which excludes $4.0 million of amortization of acquisition-related intangible asset expenses, $2.5 million restructuring cost, and $1.4 million other acquisition-related costs. GAAP operating expenses in the fourth quarter 2019 were $48.1 million, or 16.0 percent of revenue, and in the third quarter 2020 were $73.2 million, or 23.7 percent of revenue.
Fourth quarter 2020 GAAP net income was $29.7 million, or $0.59 per diluted share, which included $0.03 per share from LSC, compared to GAAP net income of $47.2 million, or $0.90 per diluted share, in fourth quarter 2019 and GAAP net income of $27.2 million, or $0.51 per diluted share, in third quarter 2020.
Fourth quarter 2020 non-GAAP adjusted net income was $37.3 million, or $0.74 per diluted share, which excluded, net of tax, $4.0 million of acquisition-related financing and other acquisition costs, $3.3 million of non-cash acquisition-related intangible asset amortization costs, $2.0 million restructuring costs, and $1.7 million gain in value on certain LSC investments. LSC contributed $0.02 to non-GAAP earnings per share in the fourth quarter. For the fourth quarter 2019, non-GAAP adjusted net income was $33.8 million, or $0.65 per diluted share, and $32.8 million, or $0.62 per diluted share, in the third quarter 2020.
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 | ||||||
| December 31, 2020 | ||||||
| GAAP net income |
$ |
29,735 |
|
|||
| GAAP diluted earnings per share |
|
0.59 |
|
|||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||
| Amortization of acquisition-related intangible assets |
|
3,270 |
|
|||
| Acquisition-related financing costs |
|
2,556 |
|
|||
| Acquisition-related costs |
|
1,472 |
|
|||
| Restructuring Cost |
|
2,009 |
|
|||
| Reverse Gain on LSC Investments |
|
(1,714 |
) |
|||
| Non-GAAP net income |
$ |
37,328 |
|
|||
| Non-GAAP diluted earnings per share |
$ |
0.74 |
|
|||
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 fourth quarter 2020 GAAP net income and non-GAAP adjusted net income was approximately $5.1 million, net of tax, of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP earnings per share (“EPS”) and non-GAAP adjusted EPS would have increased by $0.10 per diluted share for fourth quarter 2020, $0.08 for fourth quarter 2019 and $0.09 for third quarter 2020.
EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, in the fourth quarter 2020 was $67.1 million, or 19.1 percent of revenue, compared to $88.3 million, or 29.3 percent of revenue, in the fourth quarter 2019, which included a $19.2 million gain on the sale of land, and $63.3 million, or 20.5 percent of revenue, in the third quarter 2020. For a reconciliation of GAAP net income to EBITDA, see the table near the end of this release for further details.
For fourth quarter 2020, net cash provided by operating activities was 60.8 million. Net cash flow was a negative $319.3 million, which included the purchase of Lite-On Semiconductor during the quarter for approximately $453.4 million. Free cash flow (a non-GAAP measure) was $33.5 million, which includes $27.3 million of capital expenditures.
Balance Sheet
As of December 31, 2020, the Company had approximately $327 million in cash and cash equivalents, restricted cash, and short-term investments. Total debt (including long-term and short-term) amounted to approximately $451 million and working capital was approximately $514 million.
The results announced today are preliminary and unaudited, as they are subject to the Company finalizing its closing procedures and completion of the Company’s 2020 annual audit by its independent registered public accounting firm. As such, these results are subject to revision until the Company files its Form 10-K for the year ending December 31, 2020.
Business Outlook
Dr. Lu concluded, “For the first quarter of 2021, we expect revenue to increase to approximately $400 million, plus or minus 3 percent, which represents a record on both an organic and consolidated basis for a combined increase of about 14 percent sequentially at the mid-point. This guidance represents organic growth significantly better than typical seasonality of sequentially down 5 percent on average in the same prior two-year periods. We expect GAAP gross margin on a consolidated basis to be 33.6 percent, plus or minus 1 percent, which includes an approximately 3 percent impact due to a full quarter of LSC. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 22.0 percent of revenue, plus or minus 1 percent. We expect net interest expense to be approximately $3.3 million. Our income tax rate is expected to be 18 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the first quarter are anticipated to be approximately 45.7 million.”
Purchase accounting adjustments related to amortization of acquisition-related intangible assets of $3.3 million, after tax, for Pericom and previous acquisitions is not included in these non-GAAP estimates.
Conference Call
Diodes will host a conference call on Tuesday, February 16, 2021 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its fourth quarter and full year 2020 financial results. Investors and analysts may join the conference call by dialing 1-855-232-8957 and providing the confirmation code 8035448. International callers may join the teleconference by dialing +1-315-625-6979 and entering the same confirmation code at the prompt. A telephone replay of the call will be made available approximately two hours after the call and will remain available until February 23, 2021 at midnight Central Time. The replay number is 1-855-859-2056 with a pass code of 8035448. International callers should dial +1-404-537-3406 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 Investors’ section of Diodes’ website at http://www.diodes.com. 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 consumer electronics, computing, communications, industrial, and automotive markets. We leverage our expanded product portfolio of discrete, analog, and mixed-signal products and leading-edge packaging technology to meet customers’ needs. Our broad range of application-specific solutions and solutions-focused sales, coupled with worldwide operations of 31 sites, including engineering, testing, manufacturing, and customer service, enables 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 revenue growth, market share gains, increase in gross margin and increase in gross profits in 2020 and beyond; that for the first quarter of 2021, we expect revenue to be a record and increase to approximately $400 million plus or minus 3 percent; we expect GAAP gross margin to be 33.6 percent, plus or minus 1 percent which includes an approximately 3 percent impact due to a full quarter of LSC.; non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 22.0 percent of revenue, plus or minus 1 percent; we expect non-GAAP net interest expense to be approximately $3.3 million; we expect our income tax rate to be 18 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the first quarter are anticipated to be approximately 45.7 million. Potential risks and uncertainties include, but are not limited to, such factors as: the risk that the COVID-19 pandemic may continue and have a material adverse effect on customer demand and staffing of our production, sales and administration facilities; the risk that such expectations may not be met; the risk that the expected benefits of acquisitions may not be realized or that integration of acquired businesses may not continue as rapidly as we anticipate; the risk that the cost, expense, and diversion of management attention associated with the LSC acquisition may be greater than we currently expect; the risk that we may not be able to maintain our current growth strategy or continue to maintain our current performance, costs, and loadings in our manufacturing facilities; the risk that we may not be able to increase our automotive, industrial, or other revenue and market share; risks of domestic and foreign operations, including excessive 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 that the coronavirus outbreak or other similar epidemics may harm our domestic or international business operations to a greater extent than we currently anticipate; 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.
|
DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) |
|||||||||||||||||
|
Three Months Ended |
|
|
Twelve Months Ended |
||||||||||||||
|
December 31, 2020 |
|
|
December 31, 2020 |
||||||||||||||
|
2020 |
|
2019 |
|
|
2020 |
|
2019 |
||||||||||
| Net sales |
$ |
350,370 |
|
$ |
301,157 |
|
$ |
1,229,215 |
|
$ |
1,249,130 |
|
|||||
| Cost of goods sold |
|
227,673 |
|
|
191,795 |
|
|
798,094 |
|
|
783,323 |
|
|||||
| Gross profit |
|
122,697 |
|
|
109,362 |
|
|
431,121 |
|
|
465,807 |
|
|||||
| Operating expenses | |||||||||||||||||
| Selling, general and administrative |
|
52,829 |
|
|
44,199 |
|
|
185,067 |
|
|
181,343 |
|
|||||
| Research and development |
|
24,819 |
|
|
21,951 |
|
|
94,288 |
|
|
88,517 |
|
|||||
| Amortization of acquisition-related intangible assets |
|
4,012 |
|
|
4,502 |
|
|
16,261 |
|
|
18,041 |
|
|||||
| Loss (gain) on disposal of fixed assets |
|
214 |
|
|
(24,271 |
) |
|
106 |
|
|
(24,429 |
) |
|||||
| Other operating expense |
|
1,067 |
|
|
1,727 |
|
|
1,067 |
|
|
1,727 |
|
|||||
| Total operating expense |
|
82,941 |
|
|
48,108 |
|
|
296,789 |
|
|
265,199 |
|
|||||
| Income from operations |
|
39,756 |
|
|
61,254 |
|
|
134,332 |
|
|
200,608 |
|
|||||
| Other income (expense) | |||||||||||||||||
| Interest income |
|
487 |
|
|
409 |
|
|
1,066 |
|
|
2,189 |
|
|||||
| Interest expense |
|
(4,019 |
) |
|
(1,730 |
) |
|
(11,662 |
) |
|
(7,893 |
) |
|||||
| Foreign currency loss, net |
|
(3,671 |
) |
|
(2,355 |
) |
|
(9,814 |
) |
|
(3,737 |
) |
|||||
| Other income |
|
3,517 |
|
|
2,022 |
|
|
6,419 |
|
|
7,079 |
|
|||||
| Total other income (expense) |
|
(3,686 |
) |
|
(1,654 |
) |
|
(13,991 |
) |
|
(2,362 |
) |
|||||
| Income before income taxes and noncontrolling interest |
|
36,070 |
|
|
59,600 |
|
|
120,341 |
|
|
198,246 |
|
|||||
| Income tax provision |
|
6,015 |
|
|
12,046 |
|
|
21,112 |
|
|
44,131 |
|
|||||
| Net income |
|
30,055 |
|
|
47,554 |
|
|
99,229 |
|
|
154,115 |
|
|||||
| Less net (income) loss attributable to noncontrolling interest |
|
(320 |
) |
|
(364 |
) |
|
(1,141 |
) |
|
(865 |
) |
|||||
| Net income attributable to common stockholders |
$ |
29,735 |
|
$ |
47,190 |
|
$ |
98,088 |
|
$ |
153,250 |
|
|||||
| Earnings per share attributable to common stockholders: | |||||||||||||||||
| Basic |
$ |
0.60 |
|
$ |
0.92 |
|
$ |
1.92 |
|
$ |
3.02 |
|
|||||
| Diluted |
$ |
0.59 |
|
$ |
0.90 |
|
$ |
1.88 |
|
$ |
2.96 |
|
|||||
| Number of shares used in earnings per share computation: | |||||||||||||||||
| Basic |
|
49,340 |
|
|
51,086 |
|
|
51,004 |
|
|
50,787 |
|
|||||
| Diluted |
|
50,418 |
|
|
52,144 |
|
|
52,133 |
|
|
51,860 |
|
|||||
|
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 December 31, 2020: |
||||||||||||||
| COGS | Operating Expenses |
Other Income (Expense) |
Income Tax Provision |
Net Income | ||||||||||
| Per-GAAP |
$ |
29,735 |
|
|||||||||||
| Diluted earnings per share (Per-GAAP) |
|
0.59 |
|
|||||||||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||||
| Amortization of acquisition-related intangible assets |
4,012 |
(742 |
) |
|
3,270 |
|
||||||||
| Acquisition-related financing costs |
3,277 |
|
(721 |
) |
|
2,556 |
|
|||||||
| Acquisition-related costs |
306 |
1,397 |
59 |
|
(290 |
) |
|
1,472 |
|
|||||
| Reverse Gain on LSC Investments |
(2,143 |
) |
429 |
|
|
(1,714 |
) |
|||||||
| Restructuring Cost |
2,471 |
(462 |
) |
|
2,009 |
|
||||||||
| Non-GAAP |
$ |
37,328 |
|
|||||||||||
| Diluted shares used in computing earnings per share |
|
50,418 |
|
|||||||||||
| Non-GAAP diluted earnings per share |
$ |
0.74 |
|
|||||||||||
|
Note: Included in GAAP and non-GAAP net income was approximately $5.1 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP diluted earnings per share would have improved by $0.10 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 December 31, 2019: |
|||||||||||
| Operating Expenses |
Income Tax Provision |
Net Income | |||||||||
| Per-GAAP |
$ |
47,190 |
|
||||||||
| Diluted earnings per share (Per-GAAP) |
$ |
0.90 |
|
||||||||
| Adjustments to reconcile net income to non-GAAP net income: | |||||||||||
| Amortization of acquisition-related intangible assets |
4,502 |
|
(813 |
) |
|
3,689 |
|
||||
| Acquisition related costs |
1,192 |
|
(254 |
) |
|
938 |
|
||||
| Land sale inspection extension fee |
(125 |
) |
26 |
|
|
(99 |
) |
||||
| Gain on land sale |
(24,305 |
) |
5,104 |
|
|
(19,201 |
) |
||||
| Loss on impairment |
1,624 |
|
(341 |
) |
|
1,283 |
|
||||
| Non-GAAP |
$ |
33,800 |
|
||||||||
| Diluted shares used in computing earnings per share |
|
52,144 |
|
||||||||
| Non-GAAP diluted earnings per share |
$ |
0.65 |
|
||||||||
|
Note: Included in GAAP and non-GAAP adjusted net income was approximately $4.1 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 $0.08 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 twelve months ended December 31, 2020: |
|||||||||||||||
| COGS | Operating Expenses |
Other Income (Expense) |
Income Tax Provision |
Net Income | |||||||||||
| Per-GAAP |
$ |
98,088 |
|
||||||||||||
| Diluted earnings per share (Per-GAAP) |
$ |
1.88 |
|
||||||||||||
| Adjustments to reconcile net income to non-GAAP net income: | |||||||||||||||
| Amortization of acquisition-related intangible assets |
16,261 |
(2,991 |
) |
|
13,270 |
|
|||||||||
| Acquisition-related financing costs |
9,395 |
|
(2,064 |
) |
|
7,331 |
|
||||||||
| Acquisition-related costs |
306 |
2,521 |
59 |
|
(520 |
) |
|
2,366 |
|
||||||
| Restructuring Cost |
2,471 |
(462 |
) |
|
2,009 |
|
|||||||||
| Board-member retirement costs |
1,705 |
(358 |
) |
|
1,347 |
|
|||||||||
| Reverse Gain on LSC Investments |
(2,143 |
) |
429 |
|
|
(1,714 |
) |
||||||||
| Non-GAAP |
$ |
122,697 |
|
||||||||||||
| Diluted shares used in computing earnings per share |
|
52,133 |
|
||||||||||||
| Non-GAAP diluted earnings per share |
$ |
2.35 |
|
||||||||||||
|
Note: Included in GAAP and non-GAAP adjusted net income was approximately $18.6 million, net of tax, non-cash share-based compensation expense, excluding officer severance. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have improved by $0.36 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 twelve months ended December 31, 2019: |
|||||||||||
| Operating Expenses |
Income Tax Provision |
Net Income | |||||||||
| Per-GAAP |
$ |
153,250 |
|
||||||||
| Diluted earnings per share (Per-GAAP) |
$ |
2.96 |
|
||||||||
| Adjustments to reconcile net income to non-GAAP net income: | |||||||||||
| Amortization of acquisition-related intangible assets |
18,040 |
|
(3,261 |
) |
|
14,779 |
|
||||
| Acquisition related costs |
1,663 |
|
(349 |
) |
|
1,314 |
|
||||
| Land sale inspection extension fee |
(425 |
) |
89 |
|
|
(336 |
) |
||||
| Gain on land sale |
(24,305 |
) |
5,104 |
|
|
(19,201 |
) |
||||
| Loss on impairment |
1,624 |
|
(341 |
) |
|
1,283 |
|
||||
| Non-GAAP |
$ |
151,089 |
|
||||||||
| Diluted shares used in computing earnings per share |
|
51,860 |
|
||||||||
| Non-GAAP diluted earnings per share |
$ |
2.91 |
|
||||||||
|
Note: Included in GAAP and non-GAAP adjusted net income was approximately $16.2 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 $0.31 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 assets – The 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.
Contacts
Company Contact:
Diodes Inc.
Laura Mehrl
Director of Investor Relations
P: 972-987-3959
E: laura_mehrl@diodes.com
Investor Relations Contact:
Shelton Group
Leanne Sievers
President, Investor Relations
P: 949-224-3874
E: lsievers@sheltongroup.com