Record Revenue of $413 Million Exceeds High-End of Guidance, Resulting in Record Gross Profit and Adjusted EPS

PLANO, Texas — (BUSINESS WIRE) — May 6, 2021 — Diodes Incorporated (Nasdaq: DIOD) today reported its financial results for the first quarter ended March 31, 2021.

First Quarter Highlights

• Revenue was a record $413.1 million, which included the first full quarter of revenue from the LITE-ON Semiconductor Corporation (LSC) acquisition, increasing 18 percent from $350.4 million in the fourth quarter 2020 and 47 percent from $280.7 million in the first quarter 2020;
• GAAP gross profit was a record $138.6 million, compared to $122.7 million in the fourth quarter 2020 and $95.8 million in the first quarter 2020;
• GAAP gross profit margin was 33.6 percent, or 36.3 percent for Diodes only, compared to 35.0 percent in the fourth quarter 2020 and 34.1 percent in the first quarter 2020;
• GAAP net income was $39.5 million, or $0.87 per diluted share, compared to $29.7 million, or $0.59 per diluted share, in the fourth quarter 2020 and $20.2 million, or $0.38 per diluted share, in the first quarter 2020;
• Non-GAAP adjusted net income was $42.0 million, or $0.93 per diluted share, compared to $37.3 million, or $0.74 per diluted share, in the fourth quarter 2020 and $23.9 million, or $0.46 per diluted share, in the first quarter 2020;
• Excluding $4.8 million, net of tax, of non-cash share-based compensation expense, both GAAP and non-GAAP earnings per share would have increased by $0.11 per diluted share;
• EBITDA was $81.7 million, or 19.8 percent of revenue, compared to $67.1 million, or 19.1 percent of revenue, in the fourth quarter 2020 and $52.9 million, or 18.9 percent of revenue, in the first quarter 2020; and
• Achieved cash flow from operations of $68.2million and $51.0million of free cash flow, including $17.2 of capital expenditures. Net cash flow was a positive $10.6 million, including the pay down of $37.4 million of debt

Commenting on the results, Dr. Keh-Shew Lu, Chairman, President and Chief Executive Officer, stated, “Revenue set a new record both organically and on a consolidated basis, increasing 18% sequentially and exceeding the high-end of our guidance range, in what has historically been a seasonally down quarter for our business. Our growth was driven by record total POS revenue as a result of records in both Asia and Europe combined with strong growth in North America. We also achieved records in our computing end market, driven by record Pericom product revenue, and the automotive market due to strong organic growth in Diodes’ automotive business. Combined with our expense management and operating efficiencies, we delivered the highest quarter of adjusted earnings per share, which increased 25% sequentially.

“The integration of LSC is also progressing well and ahead of schedule, as we have already begun to harvest the benefit of manufacturing synergies from improved factory loading with both LSC and Diodes’ products. Our global manufacturing footprint is serving as a key advantage at a time when the broader semiconductor industry is challenged by supply and capacity constraints. We have both internal and external capacity to support the increasing demand we are seeing for our products. As a result, we expect to deliver another quarter of sequential growth in the second quarter coupled with a continued expansion in bottom-line profitability.”

First Quarter 2021

Revenue for first quarter 2021 was a record $413.1 million, which included the first full quarter of revenue from LSC, compared to $350.4 million in the fourth quarter 2020 and $280.7 million in the first quarter 2020. Revenue increased sequentially on both a consolidated and an organic basis in the first quarter.

GAAP gross profit for the first quarter 2021 was a record $138.6 million, or 33.6 percent of revenue on a consolidated basis and 36.3 percent for Diodes only. This compares to $122.7 million, or 35.0 percent of revenue on a consolidated basis and 36.0 percent for Diodes only, in the fourth quarter 2020 and $95.8 million, or 34.1 percent of revenue, in the first quarter of 2020.

GAAP operating expenses for first quarter 2021 were $91.2 million, or 22.1 percent of revenue, and on a non-GAAP basis were $86.4 million, or 20.9 percent of revenue, which excludes $4.0 million of amortization of acquisition-related intangible asset expenses and $0.8 million in restructuring costs. GAAP operating expenses in the fourth quarter 2020 were $82.9 million, or 23.7 percent of revenue, and in the first quarter 2020 were $70.0 million, or 24.9 percent of revenue.

First quarter 2021 GAAP net income was $39.5 million, or $0.87 per diluted share, compared to GAAP net income of $29.7 million, or $0.59 per diluted share, in the fourth quarter 2020 and GAAP net income in the first quarter 2020 of $20.2 million, or $0.38 per diluted share.

First quarter 2021 non-GAAP adjusted net income was $42.0 million, or $0.93 per diluted share, which excluded, net of tax, $3.3 million of acquisition-related intangible asset costs, $1.5 million acquisition-related costs, $0.7 million restructuring costs and $2.9 million gain in value of certain LSC investments. This compares to non-GAAP adjusted net income of $37.3 million, or $0.74 per diluted share, in the fourth quarter 2020 and $23.9 million, or $0.46 per diluted share, in the first 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):