Included in the first quarter of 2015 GAAP and non-GAAP adjusted net income was approximately $2.4 million, net of tax, of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP adjusted diluted EPS would have increased by an additional $0.05 per share for the first quarter 2015, $0.04 per share for the first quarter 2014, and $0.05 per share for the fourth quarter 2014.
EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, for the first quarter 2015, was $35.3 million, compared to $32.8 million for the first quarter 2014 and $42.7 million for the fourth quarter 2014. For a reconciliation of GAAP net income to EBITDA, see the table near the end of the release for further details.
For the first quarter 2015, net cash provided by operating activities was $38.6 million. Net cash flow was ($20.9) million, which reflects the pay down of $23.1 million of long-term debt and a $15.0 million net increase in short-term investments. Free cash flow was $15.0 million, which includes $23.5 million of capital expenditures.
Balance Sheet
As of March 31, 2015, the Company had approximately $249 million in cash, cash equivalents and short-term investments, long-term debt totaled approximately $118 million, and working capital was approximately $516 million.
Business Outlook
Dr. Lu concluded, “For the second quarter of 2015, we expect revenue to range between $212 million and $228 million, or an increase of 2.8 percent to 10.6 percent sequentially. We expect gross margin to be 31.5 percent, plus or minus 2 percent. Operating expenses are expected to be approximately 22.4 percent of revenue, plus or minus 1 percent. We expect our income tax rate to be 25 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the second quarter are anticipated to be approximately 49.3 million.”
Conference Call
Diodes will host a conference call on Thursday, May 7, 2015 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its first quarter 2015 financial results. Investors and analysts may join the conference call by dialing 1-855-232-8957 and providing the confirmation code 19578482. International callers may join the teleconference by dialing 1-315-625-6979 and enter 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 Thursday, May 14, 2015 at midnight Central Time. The replay number is 1-855-859-2056 with a pass code of 19578482. 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 60 days.
About Diodes Incorporated
Diodes Incorporated (Nasdaq: DIOD), a Standard and Poor's SmallCap 600 and Russell 3000 Index company, is a leading global manufacturer and supplier of high-quality application specific standard products within the broad discrete, logic and analog semiconductor markets. Diodes serves the consumer electronics, computing, communications, industrial, and automotive markets. Diodes' products include diodes, rectifiers, transistors, MOSFETs, protection devices, functional specific arrays, single gate logic, amplifiers and comparators, Hall-effect and temperature sensors; power management devices, including LED drivers, AC-DC converters and controllers, DC-DC switching and linear voltage regulators, and voltage references along with special function devices, such as USB power switches, load switches, voltage supervisors, and motor controllers. Diodes’ corporate headquarters and Americas' sales office are located in Plano, Texas. Design, marketing, and engineering centers are located in Plano; San Jose, California; Taipei, Taiwan; Manchester, England; and Neuhaus, Germany. Diodes’ wafer fabrication facilities are located in Kansas City, Missouri and Manchester, with two additional facilities located in Shanghai, China. Diodes has assembly and test facilities located in Shanghai and in Chengdu, China, as well as in Neuhaus and in Taipei. Additional engineering, sales, warehouse, and logistics offices are located in Taipei; Hong Kong; Manchester; Shanghai; Shenzhen, China; Seongnam-si, South Korea; and Munich, Germany, with support offices throughout the world. For further information, including SEC filings, visit Diodes’ website at 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 regarding our expectation that: we expect a return to growth
in the second quarter; for the second quarter of 2015, we expect revenue
to range between $212 million and $228 million, or an increase of 2.8
percent to 10.6 percent sequentially; we expect gross margin to be 31.5
percent, plus or minus 2 percent; operating expenses are expected to be
approximately 22.4 percent of revenue, plus or minus 1 percent; we
expect our income tax rate to be 25 percent, plus or minus 3 percent,
and shares used to calculate diluted EPS for the second quarter are
anticipated to be approximately 49.3 million. Potential risks and
uncertainties include, but are not limited to, such factors as: the risk
that such expectations may not be met; the risk that the expected
benefits of acquisitions may not be realized; 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; risks of domestic and foreign operations, including
excessive operation costs, labor shortages, higher tax rates and our
joint venture prospects; the risk of unfavorable currency exchange
rates; our future guidance may be incorrect; the global economic
weakness may be more severe or last longer than we currently
anticipated; 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.
