Achieves 30% Annual Revenue Growth with Solid Margin Improvement
PLANO, Texas — (BUSINESS WIRE) — February 11, 2014 — Diodes Incorporated (Nasdaq: DIOD), a leading global manufacturer and supplier of high-quality application specific standard products within the broad discrete, logic and analog semiconductor markets, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2013.
Year 2013 Highlights
- Revenue increased to a record $826.8 million, an increase of 30.5 percent over the $633.8 million in 2012;
- Gross profit was $237.8 million compared to $161.6 million in 2012;
- GAAP gross margin was 28.8 percent compared to 25.5 percent in 2012; and non-GAAP gross margin for 2013 was 29.3 percent, which excludes BCD purchase price adjustments;
- GAAP net income was $26.5 million, or $0.56 per diluted share, compared to $24.2 million, or $0.51 per diluted share in 2012;
- Non-GAAP adjusted net income was $50.1 million, or $1.05 per diluted share, compared to $26.1 million, or $0.56 per diluted share in 2012;
- Excluding $8.8 million, net of tax, share-based compensation expense, both GAAP net income and non-GAAP adjusted net income would have increased by $0.18 per diluted share;
- Reduced capital expenditure spending to $44.3 million, or 5.4 percent of revenue, compared to $60.1 million, or 9.5 percent of revenue in the prior year; and
- Achieved $109.9 million cash flow from operations, $39.5 million of net cash flow and $62.8 million free cash flow.
Fourth Quarter Highlights
- Achieved market share gains over third quarter 2013;
- Revenue was $211.0 million, a decrease of 6.0 percent from the $224.5 million in the third quarter 2013, and an increase of 29.2 percent from the $163.3 million in the fourth quarter 2012;
- Gross profit was $60.8 million, compared to $69.6 million in the third quarter of 2013 and $43.2 million in the fourth quarter of 2012;
- Gross profit margin was 28.8 percent, compared to 31.0 percent in the third quarter of 2013 and 26.5 percent in the fourth quarter of 2012;
- GAAP net income was $6.2 million, or $0.13 per diluted share, compared to third quarter 2013 of $13.6 million, or $0.28 per diluted share, and fourth quarter 2012 of $4.1 million, or $0.09 per diluted share;
- GAAP net income was impacted by a $5.3 million non-cash goodwill impairment charge related to the Eris Technology Corporation (Eris) acquisition;
- Non-GAAP adjusted net income was $11.3 million, or $0.24 per diluted share, compared to $15.8 million, or $0.33 per diluted share, in third quarter 2013 and $6.2 million, or $0.13 per diluted share, in fourth quarter 2012;
- Excluding $2.3 million, net of tax, share-based compensation expense, GAAP and non-GAAP adjusted net income would have increased by $0.05 per diluted share; and
- Achieved $32.1 million cash flow from operations and free cash flow was $15.8 million, which consists of $16.3 million of capital expenditures and a reduction in inventory by approximately $13.9 million. Net cash flow was ($7.6) million, mainly due to the pay down of $20 million on our long-term debt.
Commenting on the results, Dr. Keh-Shew Lu, President and Chief
Executive Officer, stated, “Diodes ended 2013 achieving 31 percent
revenue growth, a 390 basis point improvement in non-GAAP gross margin
and a 92 percent increase in non-GAAP net income, which represents our 23rd
consecutive year of profitability. During the year, we successfully
closed on our acquisition of BCD Semiconductor in March, which was a
strong contributor to our revenue growth and market share gains as a
result of our expanded analog product portfolio. The integration has
been progressing well, and we still have additional cost savings to
realize in the coming year as well as increased cross-selling
opportunities as design wins ramp throughout the year. BCD, including
new Fab 2, negatively impacted our gross margin by approximately 120
basis points in 2013. Diodes’ margin without BCD was 30 percent. Moving
forward we expect to capture further synergies over time as we improve
loading of the manufacturing facilities and transfer more products
internally to maximize operational and cost efficiencies.
