Achieves Record Revenue for Third Consecutive Quarter, Resulting in Record Gross Profit, Net Income, EPS and EBITDA

PLANO, Texas — (BUSINESS WIRE) — August 5, 2021 — Diodes Incorporated (Nasdaq: DIOD) today reported its financial results for the second quarter ended June 30, 2021.

Second Quarter Highlights

• Revenue was a record $440.4 million, increasing 7 percent from $413.1 million in the first quarter 2021 and 53 percent from $288.7 million in the second quarter 2020;
• GAAP gross profit was a record $159.8 million, increasing 15 percent from $138.6 million in the first quarter 2021 and 57 percent from $101.5 million in the second quarter 2020;
• GAAP gross profit margin was 36.3 percent, compared to 33.6 percent in the first quarter 2021 and 35.2 percent in the second quarter 2020;
• GAAP net income was a record $55.4 million, or $1.22 per diluted share, compared to $39.5 million, or $0.87 per diluted share, in the first quarter 2021 and $21.0 million, or $0.40 per diluted share, in the second quarter 2020;
• Non-GAAP adjusted net income was a record $54.6 million, or $1.20 per diluted share, compared to $42.0 million, or $0.93 per diluted share, in the first quarter 2021 and $28.6 million, or $0.54 per diluted share, in the second quarter 2020;
• Excluding $6.8 million, net of tax, of non-cash share-based compensation expense, both GAAP and non-GAAP earnings per share would have increased by $0.15 per diluted share;
• EBITDA was a record $99.4 million, or 22.6 percent of revenue, compared to $81.7 million, or 19.8 percent of revenue, in the first quarter 2021 and $55.3 million, or 19.2 percent of revenue, in the second quarter 2020; and
• Achieved cash flow from operations of $93.9 million and $66.0 million of free cash flow, including $27.9 of capital expenditures. Net cash flow was a negative $36.2 million, including the pay down of $114.2 million of total debt.

Commenting on the results, Dr. Keh-Shew Lu, Chairman, President and Chief Executive Officer, stated, “Our record performance across all financial metrics is a testament to our strong execution and global manufacturing footprint, enabling us to meet the growing demand for our products. Our growth was once again driven by record global POS revenue as well as record revenue in the automotive, industrial and consumer end markets, especially in IoT, combined with record revenue in the computing market driven by our Pericom products for high-end PCs, servers and datacenter applications. Diodes continued success in these markets contributed to gross margin expansion in the quarter of 270 basis points sequentially and also reflects the continued improvement in loading at the LITE-ON Semiconductor (LSC) facilities.

“Further highlighting our results was the achievement of record GAAP and non-GAAP net income as well as EBITDA, which increased 22 percent sequentially to almost 23 percent of revenue. The highly accretive LSC acquisition together with our significant operating leverage drove adjusted earnings per share for the first six months of 2021 to more than double the adjusted EPS reported in the same period of 2020. And with our expectation for another quarter of record results in the third quarter, we are well positioned to deliver continued growth, increasing profitability and shareholder value. Further, our achievement of year-over-year revenue growth of 53 percent and gross profit increasing 57 percent this quarter represents a major step toward our long-term goal of $2.5 billion in revenue and $1 billion in gross profit by 2025.”

Second Quarter 2021

Revenue for second quarter 2021 was a record $440.4 million, increasing 7 percent from $413.1 million in the first quarter 2021 and 53 percent from $288.7 million in the second quarter 2020. Revenue on an organic basis also increased both sequentially and year-over-year in the second quarter.

GAAP gross profit for the second quarter 2021 was a record $159.8 million, or 36.3 percent of revenue, increasing from $138.6 million, or 33.6 percent of revenue, in the first quarter 2021 and $101.5 million, or 35.2 percent of revenue, in the second quarter of 2020.

GAAP operating expenses for second quarter 2021 were $94.4 million, or 21.4 percent of revenue, and on a non-GAAP basis were $90.4 million, or 20.5 percent of revenue, which excludes $4.1 million of amortization of acquisition-related intangible asset expenses. GAAP operating expenses in the first quarter 2021 were $91.2 million, or 22.1 percent of revenue, and in the second quarter 2020 were $70.6 million, or 24.5 percent of revenue.

Second quarter 2021 GAAP net income was a record $55.4 million, or $1.22 per diluted share, compared to GAAP net income of $39.5 million, or $0.87 per diluted share, in the first quarter 2021 and GAAP net income in the second quarter 2020 of $21.0 million, or $0.40 per diluted share.

Second quarter 2021 non-GAAP adjusted net income was a record $54.6 million, or $1.20 per diluted share, which excluded, net of tax, $3.4 million of acquisition-related intangible asset costs, $0.1 million acquisition-related costs and $4.2 million gain in value of certain LSC investments. This compares to non-GAAP adjusted net income of $42.0 million, or $0.93 per diluted share, in the first quarter 2021 and $28.6 million, or $0.54 per diluted share, in the second 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):