Included in first quarter 2018 GAAP net income and non-GAAP adjusted net income was approximately $5.0 million, net of tax, of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP earnings per share (“EPS”) and non-GAAP adjusted EPS would have increased by $0.10 per diluted share for first quarter 2018, $0.05 for first quarter 2017 and $0.06 for fourth quarter 2017.
EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, in the first quarter 2018 was a record $54.2 million or 19.7 percent of revenue, compared to $28.6 million or 12.1 percent of revenue in the first quarter 2017 and $47.0 million or 17.5 percent of revenue in the fourth quarter 2017. For a reconciliation of GAAP net income to EBITDA, see the table near the end of this release for further details.
For first quarter 2018, net cash provided by operating activities was $54.0 million. Net cash flow was a negative $21.3 million, including the $46.5 million long-term debt pay down. Free cash flow (a non-GAAP measure) was $22.3 million, which includes $31.6 million of capital expenditures.
Balance Sheet
As of March 31, 2018, the Company had approximately $186.3 million in cash, cash equivalents and short-term investments, long-term debt (including the current portion) totaled approximately $221.8 million, and working capital was approximately $393.9 million.
The results announced today are preliminary, as they are subject to the Company finalizing its closing procedures and customary quarterly review by the Company's independent registered public accounting firm. As such, these results are subject to revision until the Company files its Form 10-Q for the quarter ending March 31, 2018.
Business Outlook
Dr. Lu concluded, “For the second quarter of 2018, we expect continued strong growth with revenue increasing to a range between $292 million and $308 million, or up 6.4 to 12.2 percent sequentially. We expect GAAP gross margin to be 35.5 percent, plus or minus 1 percent. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 22.0 percent of revenue, plus or minus 1 percent. We expect interest expense to be approximately $2.5 million. Our income tax rate is expected to be 29.0 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the second quarter are anticipated to be approximately 51.3 million.” Please note that purchase accounting adjustments of $3.8 million, after tax, for Pericom and previous acquisitions are not included in these non-GAAP estimates.
Conference Call
Diodes will host a conference call on Tuesday, May 8, 2018 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its first quarter 2018 financial results. Investors and analysts may join the conference call by dialing 1-855-232-8957 and providing the confirmation code 4494787. International callers may join the teleconference by dialing 1-315-625-6979 and entering 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 May 15, 2018 at midnight Central Time. The replay number is 1-855-859-2056 with a pass code of 4494787. 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 Inc.
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, analog, and mixed-signal semiconductor
markets. Diodes serves the consumer electronics, computing,
communications, industrial, and automotive markets. Diodes’ products
include diodes, rectifiers, transistors, MOSFETs, protection devices,
function-specific arrays, single gate logic devices, 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 and
Milpitas, California. Design, marketing, and engineering centers are
located in Plano; Milpitas; Taipei, Taiwan; Taoyuan City, Taiwan; Zhubei
City, Taiwan; Manchester, England; and Neuhaus, Germany. Diodes’ wafer
fabrication facilities are located in Manchester and Shanghai, China.
Diodes has assembly and test facilities located in Neuhaus, Shanghai,
Jinan, Chengdu, and Yangzhou, China. 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.
