Achieves Record Revenue for 6^th Consecutive Quarter and Record Gross Margin of 40.8%, Driving Record Profits from Operations and EPS

PLANO, Texas — (BUSINESS WIRE) — May 4, 2022 — Diodes Incorporated (Diodes) (Nasdaq: DIOD) today reported its financial results for the first quarter ended March 31, 2022.

First Quarter Highlights

• Announced the proposed acquisition of the onsemi wafer fabrication facility, which is expected to close in late second quarter of 2022;
• Revenue was a record $482.1 million, increasing 16.7 percent from $413.1 million in the first quarter 2021 and 0.4 percent from $480.2 million in the fourth quarter 2021;
• GAAP gross profit was a record $196.7 million, increasing 41.9 percent from $138.6 million in the first quarter 2021 and 3.1 percent from $190.7 million in the fourth quarter 2021;
• GAAP gross profit margin was a record 40.8 percent, an increase of 720 basis points from the 33.6 percent in the first quarter 2021 and 110 basis points from the 39.7 percent in the fourth quarter 2021;
• GAAP net income was a record $72.7 million, compared to $39.5 million in the first quarter 2021 and $65.5 million in the fourth quarter 2021;
• Non-GAAP adjusted net income was a record $80.3 million, compared to $42.0 million in the first quarter 2021 and $73.3 million in the fourth quarter 2021;
• GAAP EPS was a record $1.59 per diluted share, an 82.8 percent improvement from the $0.87 per diluted share in the first quarter 2021 and a 11.2 percent increase compared to $1.43 per diluted share in the fourth quarter 2021;
• Non-GAAP EPS was a record $1.75 per diluted share, an 88.2 percent improvement from the $0.93 per diluted share in the prior year quarter and a 9.4 percent increase from the $1.60 per diluted share last quarter;
• Excluding $6.4 million, net of tax, of non-cash share-based compensation expense, both GAAP and non-GAAP earnings per share would have increased by $0.14 per diluted share;
• EBITDA was $118.2 million, or 24.5 percent of revenue, compared to $81.7 million, or 19.8 percent of revenue, in the first quarter 2021 and $139.0 million, or 28.9 percent of revenue, in the fourth quarter 2021; and
• Achieved cash flow from operations of $72.3 million and $33.8 million of free cash flow, including $38.5 of capital expenditures. Net cash flow was a negative $60.8 million, including the pay down of $67.6 million of debt, capital expenditures and a deposit on the proposed acquisition of the onsemi facility.

Commenting on the results, Dr. Keh-Shew Lu, Chairman, President and Chief Executive Officer, stated, “The first quarter represented a continuation of outstanding execution by the Diodes team, especially considering this quarter is typically down seasonally and the recent COVID-related lockdowns in China, most notably in the Shanghai area. We once again set new records across key financial metrics, including the 6th consecutive quarter of record revenue and gross profit, record gross margin that exceeded 40% for the first time in the Company’s history, and the 5th consecutive quarter of record non-GAAP earnings per share.

“Our strong revenue and margin performance continues to be driven by records achieved in the automotive end market, which reached 13% of revenue, the industrial market, as well as for our Pericom products. Gross margin expanded 720 basis points year-over-year due to a greater mix of higher margin products along with expanded factory utilization and loading. Another key factor to our ongoing success has been our content expansion initiatives and our total solution sales approach, resulting in expanded customer relationships and increasing design win momentum. And when combined with our diligent expense management, we delivered an almost 90% increase in adjusted earnings per share over the prior year period.

“Looking forward, we are well positioned with a global manufacturing footprint, including the proposed addition of the onsemi South Portland, Maine facility, which will greatly increase our internal capacity to support our future growth, especially in the automotive and industrial end markets. Demand for our products remains at high levels across all target end markets and geographies, and we are guiding for our 9^th consecutive quarter of revenue growth and our 7^th consecutive quarter of record revenue in the second quarter and also anticipating another solid year of strong growth and profitability for Diodes.”

First Quarter 2022

Revenue for first quarter 2022 was a record $482.1 million, increasing 16.7 percent from $413.1 million in the first quarter 2021 and 0.4 percent from $480.2 million in the fourth quarter 2021.

GAAP gross profit for the first quarter 2022 was a record $196.7 million, or a record 40.8 percent of revenue, increasing from $138.6 million, or 33.6 percent of revenue, in the first quarter of 2021 and $190.7 million, or 39.7 percent of revenue, in the fourth quarter 2021.

GAAP operating expenses for first quarter 2022 were $103.6 million, or 21.5 percent of revenue, and on a non-GAAP basis were $99.5 million, or 20.6 percent of revenue, which excludes $3.9 million of amortization of acquisition-related intangible asset expenses and $0.3 million of acquisition-related costs. GAAP operating expenses in the first quarter 2021 were $91.2 million, or 22.1 percent of revenue, and in the fourth quarter 2021 were $104.7 million, or 21.8 percent of revenue.

First quarter 2022 GAAP net income was a record $72.7 million, or $1.59 per diluted share, compared to GAAP net income in the first quarter 2021 of $39.5 million, or $0.87 per diluted share, and GAAP net income of $65.5 million, or $1.43 per diluted share, in the fourth quarter 2021.

First quarter 2022 non-GAAP adjusted net income was a record $80.3 million, or $1.75 per diluted share, which excluded, net of tax, $4.2 million non-cash mark-to-market adjustment of investments, $3.2 million of acquisition-related intangible asset costs and $0.2 million of acquisition-related costs. This compares to non-GAAP adjusted net income of $42.0 million, or $0.93 per diluted share, in the first quarter 2021 and $73.3 million, or $1.60 per diluted share, in the fourth quarter 2021.

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):