Date: 10th Nov 2010
Diodes reports sequential growth of 9.4%
in 3Q 2010
Discrete and power semicoductor vendor Diodes Incorporated
has reported record revenue of $163.1 million, an increase
of 33.6 percent over the $122.1 million in the third quarter
of 2009 and a sequential increase of 9.4 percent over the
$149.2 million in the second quarter of 2010.
Gross profit reported was a record $61.0 million, an increase
of 62.2 percent over the $37.6 million in the third quarter
of 2009 and a sequential increase of 14.0 percent over the
$53.5 million in the second quarter of 2010.
Diodes says the successful capturing of Zetex product synergies
has allowed the Company to take advantage of European and
North American market strength, which has resulted in higher
revenue growth in those regions.
Commenting on the quarter, Dr. Keh-Shew Lu, President and
Chief Executive Officer of Diodes Incorporated, stated,
"The third quarter represents the Company's sixth consecutive
quarter of sequential revenue growth and was complemented
by our achievement of record net income in the quarter.
Over that time, we have consistently executed on our new
product development plans and expanded our design wins,
which have contributed to our market share gains at key
customers and record results. Additionally, the capital
investments that we made to expand capacity at our packaging
facilities over the last twelve months have enabled us to
achieve record output during this year. Although capacity
remains tight, we have proactively shifted our product mix
toward higher margin products to achieve the highest gross
margin in the Company's history. These results reflect Diodes'
continued commitment to grow faster than our addressable
markets as we secure greater market share in key end-equipment,
launch additional products in new markets and leverage our
broadened product portfolio to maintain a higher level of
Dr. Lu concluded, "With the market supply shortage
easing as well as supply and demand becoming more balanced,
we expect to return to more seasonal trends for the fourth
quarter. We believe we will further expand our market share
as a result of our continued focus on design wins, new products
and customer expansion. In terms of fourth quarter guidance,
revenue is anticipated to range between $160 million and
$168 million, or between a decrease of 2 percent and an
increase of 3 percent sequentially. Gross margin is expected
to be comparable to the third quarter level. Operating expenses
are anticipated to be comparable to third quarter levels
on a percent of revenue basis. We expect our income tax
rate for the fourth quarter to range between 17 and 23 percent.
Shares used to calculate GAAP EPS for the fourth quarter
are anticipated to be approximately 46.3 million."