Diodes Incorporated Reports First Quarter 2017 Financial Results

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 containing forward-looking words such as “expect,” “anticipate,” “sets the stage,” “continuing,” “working diligently to,” “position the Company for,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of revenue growth, market share gains and increase in gross profits in 2017 and beyond; that for the second quarter of 2017, we expect revenue to range between $250 million and $270 million, or up 5.8 to 14.3 percent sequentially, that we expect gross margin to be 32.5 percent, plus or minus 1 percent, including approximately $1 million of KFAB closure-related accruals; that non-GAAP operating expenses, which are GAAP operating expenses adjusted for KFAB closure costs, retention costs and amortization of acquisition-related intangible assets, are expected to be approximately 22.3 percent of revenue, plus or minus 1 percent; that we expect interest expense to be approximately $3.3 million.. Our income tax rate is expected to be 26.5 percent, plus or minus 3 percent; that shares used to calculate diluted EPS for the first quarter are anticipated to be approximately 50 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 or that integration of acquired businesses, such as Pericom, may not continue as rapidly as we anticipate; 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; the risk that we may not be able to increase our automotive or other revenue and market share; risks of domestic and foreign operations, including excessive operation costs, labor shortages, higher tax rates and our joint venture prospects; the risk that we may not continue our share repurchase program; the risks of cyclical downturns in the semiconductor industry and of changes in end-market demand that may render inventory obsolete; the risk of unfavorable currency exchange rates; the risk that our future outlook or guidance may be incorrect; the risks of global economic weakness or instability in global financial markets; the risks of trade restrictions, tariffs or embargoes; the risk of 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.

Recent news releases, annual reports and SEC filings are available at the Company’s website: http://www.diodes.com. Written requests may be sent directly to the Company, or they may be e-mailed to: diodes-fin@diodes.com.

 
 
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 
    Three Months Ended
March 31,
  2017         2016  
NET SALES $ 236,303 $ 222,738
 
COST OF GOODS SOLD   162,392     158,518  
 
Gross profit 73,911 64,220
 
OPERATING EXPENSES
Selling, general and administrative 39,690 39,454
Research and development 18,040 18,149
Amortization of acquisition-related intangible assets 4,758 5,131
Restructuring 2,231 -
Others   (165 )   31  
Total operating expenses   64,554     62,765  
 
Income from operations 9,357 1,455
 
OTHER INCOME (EXPENSES)
Interest income 295 456
Interest expense (3,485 ) (2,512 )
Currency net (3,794 ) (1,279 )
Other   (271 )   (157 )
Total other expenses (7,255 ) (3,492 )
 
Income (Loss) before income taxes and noncontrolling interest 2,102 (2,037 )
 
INCOME TAX PROVISION (BENEFIT)   560     (552 )
 
NET INCOME (LOSS) 1,542 (1,485 )
 
Less: NET INCOME attributable to noncontrolling interest   (325 )   (248 )
 
NET INCOME (LOSS) attributable to common stockholders $ 1,217   $ (1,733 )
 
EARNINGS (LOSS) PER SHARE attributable to common stockholders
Basic $ 0.03   $ (0.04 )
Diluted $ 0.02   $ (0.04 )
 
Number of shares used in computation
Basic   48,316     48,288  
Diluted   49,663     48,288  

Note: Throughout this release, we refer to “net income attributable to common stockholders” as “net income.”

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