Exhibit 99.2
Call Participants: Dr. Keh-Shew Lu, Richard White, Mark King and Laura Mehrl
Operator
GOODAFTERNOONANDWELCOMETO DIODES INCORPORATED’SFIRSTQUARTER 2014FINANCIALRESULTSCONFERENCECALL.
(OPERATOR INSTRUCTIONS)
ASAREMINDER,THISCONFERENCECALLISBEINGRECORDEDTODAY, THURSDAY, MAY 8, 2014. IWOULDNOWLIKETOTURNTHECALLOVERTO LEANNE SIEVERSOF SHELTON GROUP INVESTOR RELATIONS. LEANNE,PLEASEGOAHEAD.
Leanne Sievers — Diodes Inc — EVP of Shelton Group
GOODAFTERNOONANDWELCOMETO DIODES’FIRSTQUARTER 2014FINANCIALRESULTSCONFERENCECALL. I’M LEANNE SIEVERS, EXECUTIVE VICE PRESIDENTOF SHELTON GROUP, DIODES’INVESTORRELATIONSFIRM. WITHUSTODAYARE DIODES’ PRESIDENTAND CEO, DR. KEH-SHEW LU; CHIEF FINANCIAL OFFICER, RICK WHITE; SENIOR VICE PRESIDENTOF SALESAND MARKETING, MARK KING;AND DIRECTOROF INVESTOR RELATIONS, LAURA MEHRL.
BEFORE ITURNTHECALLOVERTO DR. LU, IWOULDLIKETOREMINDOURLISTENERSTHATMANAGEMENT’SPREPAREDREMARKSCONTAINFORWARD-LOOKINGSTATEMENTS,WHICHARESUBJECTTORISKSANDUNCERTAINTIES,ANDMANAGEMENTMAYMAKEADDITIONALFORWARD-LOOKINGSTATEMENTSINRESPONSETOYOURQUESTIONS. THEREFORE,THE COMPANYCLAIMSTHEPROTECTIONOFTHESAFEHARBORFORFORWARD-LOOKINGSTATEMENTSTHATISCONTAINEDINTHE PRIVATE SECURITIES LITIGATION REFORM ACTOF 1995. ACTUALRESULTSMAYDIFFERFROMTHOSEDISCUSSEDTODAY,ANDTHEREFOREWEREFERYOUTOAMOREDETAILEDDISCUSSIONOFTHERISKSANDUNCERTAINTIESINTHE COMPANY’SFILINGSWITHTHE SECURITIESAND EXCHANGE COMMISSION.
INADDITION,ANYPROJECTIONSASTOTHE COMPANY’SFUTUREPERFORMANCEREPRESENTMANAGEMENT’SESTIMATESASOFTODAY, MAY 8, 2014. DIODESASSUMESNOOBLIGATIONTOUPDATETHESEPROJECTIONSINTHEFUTUREASMARKETCONDITIONSMAYORMAYNOTCHANGE.
ADDITIONALLY,THE COMPANY’SPRESSRELEASEANDMANAGEMENT’SSTATEMENTSDURINGTHISCONFERENCECALLWILLINCLUDEDISCUSSIONSOFCERTAINMEASURESANDFINANCIALINFORMATIONIN GAAPANDNON-GAAPTERMS. INCLUDEDINTHE COMPANY’SPRESSRELEASEAREDEFINITIONSANDRECONCILIATIONSOF GAAPTONON-GAAPITEMS,WHICHPROVIDEADDITIONALDETAILS. ALSO,THROUGHOUTTHE COMPANY’SPRESSRELEASEANDMANAGEMENT’SSTATEMENTSDURINGTHISCONFERENCECALL,WEREFERTONETINCOMEATTRIBUTABLETOCOMMONSTOCKHOLDERSAS GAAPNETINCOME.
FORTHOSEOFYOUUNABLETOLISTENTOTHEENTIRECALLATTHISTIME,ARECORDINGWILLBEAVAILABLEVIAWEBCASTFOR 60DAYSINTHEINVESTORRELATIONSSECTIONOF DIODES’WEBSITEATWWW.DIODES.COM. ANDNOW IWILLTURNTHECALLOVERTO DIODES’ PRESIDENTAND CEO, DR. KEH-SHEW LU. DR. LU,PLEASEGOAHEAD.
Keh-Shew Lu— Diodes Inc — President and CEO
THANKYOU, LEANNE. WELCOMEEVERYONE,ANDTHANKYOUFORJOININGUSTODAY. I’MPLEASEDTOREPORTFIRSTQUARTERREVENUEWASESSENTIALLYFLAT,WHICHWASBETTERTHANOURTYPICALSEASONALRESULTS. WEALSOOVERCAMETHE CHINESE NEW YEARSLOWDOWN,WHICHINCLUDEDFEWERWORKINGDAYSINTHEQUARTERASWELLASTHETYPICALLABORSHORTAGES,BYSHIPPINGFROMINVENTORYTHATWEHADSTRATEGICALLYBUILT-UPLASTQUARTER.
ALSONOTABLEINTHEFIRSTQUARTER,WEIMPROVEDGROSSMARGINBY 50BASISPOINTSSEQUENTIALLYAND 320BASISPOINTSYEAROVERYEAR. THEINCREASEWASDRIVENBYIMPROVEDWAFERFABPERFORMANCE,ESPECIALLYAT BCD FAB 2WHERETHERAMP-UPISGOINGSMOOTHLY,ASWELLASANOVERALLIMPROVEMENTINPRODUCTMIX.
WEALSOCONTINUEDTOEXECUTEONCOSTCONTROLSWITHOPERATINGEXPENSESDECLININGSEQUENTIALLYONADOLLARBASISANDASAPERCENTAGEOFTHEREVENUE. COLLECTIVELY,THOSEFACTORSCONTRIBUTEDTOA 65%SEQUENTIALIMPROVEMENTTO GAAPNETINCOME,ORAPPROXIMATELY $0.08PERSHARE,WHICHISSIGNIFICANTWHENCONSIDERINGTHEFLATREVENUERESULTSFORTHEQUARTER.
ALSODURINGTHEQUARTER,WEGENERATEDASIGNIFICANTAMOUNTOFCASH,ACHIEVINGAPPROXIMATELY $46MILLIONINCASHFROMOPERATIONS,INCLUDINGA $4MILLIONREDUCTIONOFINVENTORYANDFREECASHFLOWOFAPPROXIMATELY $34MILLION,INCLUDINGAPPROXIMATELY $12MILLIONOF CAPEX. ASARESULTOFOURSTRONGCASHGENERATION,WEWEREABLETOREDUCEOURLONG-TERMDEBTBYAPPROXIMATELY $17MILLION,WHICHFOLLOWEDAREDUCTIONOFALMOST $20MILLIONLASTQUARTER,BRINGINGOURLONG-TERMDEBTTOAPPROXIMATELY $165MILLION.
ASWELOOKTOTHESECONDQUARTER,WEEXPECTREVENUETOINCREASESEQUENTIALLY,HIGHLIGHTEDBYCONTINUEDGROSSMARGINIMPROVEMENTASWELLASANONGOINGCOMMITMENTTOCOSTCONTROLS,DRIVINGFURTHERPROFITABILITYANDCASHGENERATION. WITHTHAT, IWILLNOWTURNTHECALLOVERTO RICKTODISCUSSOURFIRSTQUARTERFINANCIALRESULTSASWELLASSECONDQUARTERGUIDANCEINMOREDETAIL.
Rick White— Diodes Inc — CFO
THANKS, DR. LU,ANDGOODAFTERNOONEVERYONE. REVENUEFORTHEFIRSTQUARTEROF 2014WAS $210MILLION,ADECREASEOF 0.5%FROMTHE $211.0MILLIONINTHEFOURTHQUARTEROF 2013,ANDANINCREASEOF 18.6%FROMTHE $177MILLIONINTHEFIRSTQUARTER 2013,WHICHINCLUDEDONEMONTHOFREVENUEFROM BCD SEMICONDUCTOR. REVENUEWASESSENTIALLYFLATFROMTHEFOURTHQUARTERDESPITETHE CHINESE NEW YEARSLOWDOWN,WHICHINCLUDEDFEWERWORKINGDAYSINTHEQUARTERASWELLASTHEASSOCIATEDWORKFORCESHORTAGE.
GROSSPROFITFORTHEFIRSTQUARTEROF 2014WAS $61.6MILLION,OR 29.3%OFREVENUE,COMPAREDTOTHEFOURTHQUARTER 2013OF $60.8MILLION,OR 28.8%OFREVENUE,ANDFIRSTQUARTER 2013OF $46.2MILLION,OR 26.1%OFREVENUE. THEINCREASEINGROSSPROFITMARGINWASPRIMARILYDUETOIMPROVEDWAFERFABPERFORMANCE,ESPECIALLYAT BCD FAB 2,COMBINEDWITHOVERALLBETTERPRODUCTMIX.
GAAPOPERATINGEXPENSESFORTHEFIRSTQUARTERWERE $47.2MILLION,OR 22.5%OFREVENUE,COMPAREDTO $52.8MILLION,OR 25%OFREVENUE,INTHEFOURTHQUARTER 2013AND $42.4MILLION,OR 24%OFREVENUEINTHEFIRSTQUARTER 2013. NON-GAAPOPERATINGEXPENSES,EXCLUDINGNON-CASHACQUISITIONRELATEDINTANGIBLEASSETAMORTIZATIONCOSTS,WERE $45.2MILLION,OR 21.5%OFREVENUE,INTHEFIRSTQUARTER 2014.
LOOKINGSPECIFICALLYAT SELLING, GENERALAND ADMINISTRATIVEEXPENSES, SG&AWASAPPROXIMATELY $32.3MILLIONFORTHEFIRSTQUARTER,OR 15.4%OFREVENUE,COMPAREDTO $32.8MILLION,OR 15.6%OFREVENUE,INTHEFOURTHQUARTERAND $30.4MILLION,OR 17.2%OFREVENUE,INTHEFIRSTQUARTEROF 2013. INVESTMENTIN RESEARCHAND DEVELOPMENTFORTHEFIRSTQUARTERWASAPPROXIMATELY $12.9MILLION,OR 6.1%OFREVENUE,COMPAREDTO $12.5MILLION,OR 5.9%OFREVENUELASTQUARTERAND $10.1MILLION,OR 5.7%OFREVENUE,INTHEFIRSTQUARTEROF 2013. SG&APLUS R&DCOMBINEDEQUALED 21.5%OFREVENUEWHICHWASCOMPARABLETOTHE 21.5%LASTQUARTER,ANDDOWN 140BASISPOINTSFROMFIRSTQUARTEROF 2013AT 22.9%.
TOTAL OTHER EXPENSEAMOUNTEDTO $1.4MILLIONFORTHEFIRSTQUARTER. WEHADAPPROXIMATELY $1.3MILLIONOFINTERESTEXPENSEANDAPPROXIMATELY $400,000OFINTERESTINCOME. INCOME BEFORE TAXESAND NONCONTROLLING INTERESTINTHEFIRSTQUARTEROF 2014AMOUNTEDTO $13MILLION,COMPAREDTOTHEINCOMEOF $6.3MILLIONINTHEFOURTHQUARTEROF 2013,AND $4.3MILLIONINTHEFIRSTQUARTEROF 2013.
TURNINGTOINCOMETAXES,OUREFFECTIVEINCOMETAXRATEFORTHEFIRSTQUARTERWASAPPROXIMATELY 19.6%,WHICHWASATTHELOWENDOFOURGUIDANCEOFBETWEEN 19%AND 25%. GAAPNETINCOMEFORTHEFIRSTQUARTER 2014WAS $10.2MILLION,OR $0.21PERDILUTEDSHARE,COMPAREDTOFOURTH-QUARTER 2013 GAAPNETINCOMEOF $6.2MILLION,OR $0.13PERDILUTEDSHARE,ANDFIRST-QUARTER 2013 GAAPNETLOSSOF $1.9MILLION,ORNEGATIVE $0.04PERSHARE. THESHARECOUNTUSEDTOCOMPUTE GAAPDILUTED EPSFORTHEFIRSTQUARTER 2014WAS 48 MILLIONSHARES.
FIRST-QUARTERNON-GAAPADJUSTEDNETINCOMEWAS $12.4MILLION,OR $0.26PERDILUTEDSHARE,WHICHEXCLUDED,NETOFTAX, $1.6MILLIONOFNON-CASHACQUISITION-RELATEDINTANGIBLEASSETAMORTIZATIONCOSTSAND $600,000OFRETENTIONCOSTSRELATEDTOTHE BCDACQUISITION. THISCOMPARESTONON-GAAPADJUSTEDNETINCOMEOF $11.3MILLION,OR $0.24PERDILUTEDSHARE,INTHEFOURTHQUARTER 2013AND $7.5MILLION,OR $0.16PERDILUTEDSHARE,INTHEFIRSTQUARTER 2013.
WEHAVEINCLUDEDINOUREARNINGSRELEASEARECONCILIATIONOF GAAPNETINCOMETONON-GAAPADJUSTEDNETINCOME,WHICHPROVIDESADDITIONALDETAILS. INCLUDEDINTHEFIRSTQUARTER 2014 GAAPANDNON-GAAPADJUSTEDNETINCOMEWASAPPROXIMATELY $2.1MILLION,NETOFTAX,NON-CASHSHARE-BASEDCOMPENSATIONEXPENSE. EXCLUDINGSHAREBASEDCOMPENSATIONEXPENSE,BOTH GAAPANDNON-GAAPADJUSTEDDILUTED EPSWOULDHAVEINCREASEDBYANADDITIONAL $0.04PERDILUTEDSHAREINTHEFIRSTQUARTER.
CASHFLOWGENERATEDFROMOPERATIONSFORTHEFIRSTQUARTER 2014WAS $46.1MILLION,WHICHINCLUDEDAREDUCTIONININVENTORYBYAPPROXIMATELY $4MILLION. FREECASHFLOWFORTHEFIRSTQUARTER 2014WAS $34.3MILLION,WHICHINCLUDED $11.8MILLIONOFCAPITALEXPENDITURES. ANDNETCASHFLOWFORTHEFIRSTQUARTERWASAPOSITIVE $15MILLION,WHICHINCLUDESTHEPAY-DOWNOFAPPROXIMATELY $17.3MILLIONONOURLONG-TERMDEBT.
TURNINGTOTHEBALANCESHEET,ATTHEENDOFTHEFIRSTQUARTER,WEHADAPPROXIMATELY $212MILLIONINCASHANDCASHEQUIVALENTSAND $21MILLIONINSHORT-TERMCASHINVESTMENTS. WORKINGCAPITALWASAPPROXIMATELY $495MILLION.
ATTHEENDOFTHEFIRSTQUARTER,INVENTORYDECREASEDBY $4MILLIONTOAPPROXIMATELY $177MILLION,COMPAREDTOAPPROXIMATELY $180MILLIONATTHEENDOFTHEFOURTHQUARTEROF 2013. INVENTORYINTHEQUARTERREFLECTSA $6MILLIONDECREASEINFINISHEDGOODSANDA $2MILLIONINCREASEINWORK-IN-PROCESSANDA $200,000INCREASEINRAWMATERIALS. INVENTORYDAYSWERE 108INTHEFIRSTQUARTER,COMPAREDTO 115DAYSLASTQUARTER.
ATTHEENDOFTHEFIRSTQUARTER,ACCOUNTSRECEIVABLEWASAPPROXIMATELY $176MILLION,DOWNABOUT $17MILLIONFROMFOURTHQUARTER. A/RDAYSWERE 80,COMPAREDTO 84LASTQUARTER. OURLONG-TERMDEBTTOTALEDAPPROXIMATELY $165MILLION.
FIRST-QUARTERCAPITALEXPENDITURESWERE $11.8MILLION,OR 5.6%OFREVENUE,WHICHISATTHELOWENDOFOURREDUCED CAPEXSPENDINGTARGETRANGEOF 5%TO 9%OFREVENUE. DEPRECIATIONANDAMORTIZATIONEXPENSEFORTHEFIRSTQUARTERWAS $19.2MILLION.
NOW,TURNINGTOOUROUTLOOK. FORTHESECONDQUARTEROF 2014,WEEXPECTREVENUETOINCREASETOARANGEOF $216MILLIONTO $229MILLION,ORUP 2.9%TO 9.1%SEQUENTIALLY. WEEXPECTGROSSMARGINTOBE 30.5%,PLUSORMINUS 2%.
OPERATINGEXPENSESAREEXPECTEDTOBEAPPROXIMATELY 21.8%OFREVENUE,PLUSORMINUS 1%. WEEXPECTOURINCOMETAXRATETORANGEBETWEEN 19%AND 25%,ANDSHARESUSEDTOCALCULATE EPSFORTHESECONDQUARTERAREANTICIPATEDTOBEAPPROXIMATELY 48.2MILLION. WITHTHATSAID, IWILLNOWTURNTHECALLOVERTO MARK KING.
Mark King— Diodes Inc — SVP, Sales and Marketing
THANKYOU, RICK,ANDGOODAFTERNOON. DURINGTHEFIRSTQUARTER,WEEXPERIENCEDAREBOUNDIN EUROPEAFTERASOFTFOURTHQUARTER,WITH NORTH AMERICAALSOSHOWINGSOMESTRENGTH.
DISTRIBUTOR POPWASUP 5%,ANDINVENTORYINCREASED 7.4%FOLLOWINGA 6.5%DECREASEIN Q4ASDISTRIBUTORSBEGANREBUILDINGINVENTORY,INDICATINGAMOREPOSITIVEOUTLOOKFOR 2014. OEMSALESWEREDOWN 10%ASEXPECTED,ANDDISTRIBUTOR POSWASDOWN 5.2%AFTERASTRONGERTHANEXPECTED Q4UP 2%. GLOBALCHANNELINVENTORYISHEALTHYANDINLINEANDREMAINSUNDER 3MONTHS.
INTERMSOFOURENDMARKETS,CONSUMERREPRESENTED 34%OFREVENUE,COMMUNICATIONS 22%,COMPUTINGANDINDUSTRIALWERE 20%EACH,ANDAUTOMOTIVEWAS 4%. OURSTRONGESTMARKETSINTHEQUARTERWERETHEAUTOMOTIVEANDINDUSTRIALMARKETS,LARGELYOFFSETBYSOFTERCONDITIONSINTHECOMPUTINGANDCOMMUNICATIONSMARKETS. HOWEVER,THESEMARKETSAREEXPECTEDTOSTRENGTHENINTHESECONDQUARTER.
TURNINGTO GLOBAL SALES, ASIAREPRESENTED 80%OFREVENUE, NORTH AMERICA 10%AND EUROPEALSO 10%. DESIGNACTIVITYREMAINEDSTRONGACROSSALLREGIONSANDPRODUCTLINES. WEHAVEASOLIDPIPELINEOFDESIGNWINSASARESULTOFEXPANDEDPRODUCTPORTFOLIOANDCUSTOMERENGAGEMENTSFROMCROSS-SELLINGOPPORTUNITIESWITH BCD.
OURNEW LEDDRIVERSFORBULBREPLACEMENTAND ACTO DCPRODUCTSACQUIREDFROM BCDCONTINUEDTOGAINTRACTIONINTHEQUARTER. INFACT,WEACHIEVEDARECORDREVENUEQUARTERFOR ACTO DCPRODUCTSASWELLAS LEDLIGHTINGANDPROTECTIONDEVICES. WEALSOHADAVERYSTRONGREVENUEQUARTERONLOADSWITCHES, DBSPRODUCTSANDBIPOLARTRANSISTORS.
THROUGHOUTTHEFIRSTQUARTER, DIODESCONTINUEDTOEXECUTEOURSTRATEGYOFEXPANDINGBROAD-BASEDPRODUCTOFFERINGSAIMEDATADIVERSERANGEOFMARKETSANDAPPLICATIONS. ONTHEDISCRETESIDE,WERELEASED 116NEWPRODUCTSACROSS 23PRODUCTLINES,INCLUDINGADDITIONALPRODUCTSAIMEDATIMPROVINGENERGYEFFICIENCYINHIGH-VOLUMEAPPLICATIONS,SUCHA LED TVS,SET-TOPBOXES,SMARTPHONES,TABLETSASWELLASPOWERADAPTERSANDWIRELESSCHARGING. DIODESALSOSUBSTANTIALLYINCREASEDITSRANGEOFPRODUCTSDESIGNEDANDCHARACTERIZEDFORTHEFAST-GROWINGAUTOMOTIVEELECTRONICSSEGMENT,INCLUDINGEXPANDEDFAMILIESOF MOSFETS,RECTIFIERSAND TVSPRODUCTS.
DURINGTHEQUARTER,WECONTINUEDTOMAKESTRIDESTOWARDADVANCINGOURTECHNOLOGYANDMANUFACTURINGINNOVATIONONNEWPRODUCTS. ONEEXAMPLEOFTHISWASOUREFFORTSTOAGGRESSIVELYEXPANDOURPRODUCTPORTFOLIOBASEDONOURPROPRIETARY TRENCH SBRTECHNOLOGY. THISPLATFORMPROVIDESDESIGNERSWITHA SCHOTTKYRECTIFIERALTERNATIVETHATHELPSMEETTHEEFFICIENCYREQUIREMENTSANDSPACECONSTRAINTSOFNEXT-GENERATIONADAPTORSANDCHARGERSAPPLICATIONS.
WEEXPANDEDOUR TRENCH SBRTECHNOLOGYPORTFOLIOTOAVOLTAGERANGEFROM 40VOLTSTO 100VOLTSWITHACURRENTRANGEFROM 3AMPSTO 25AMPS. TWOPRODUCTSWERELAUNCHEDSPECIFICALLYFORWIRELESSCHARGERAPPLICATIONSANDTHEPOWERADAPTERMARKET,WHICHAREMARKETSWHICHWEAREGAININGSIGNIFICANTTRACTIONANDCONTENT.
ANOTHEREXAMPLERELATESTOOURNEWSTATE-OF-THE-ARTSPLIT-GATEPROCESS. LASTQUARTER IHADMENTIONEDTHAT DIODESREACHEDAMILESTONEWITHTHELAUNCHOFOURFIRST 60VOLT MOSFETDEVELOPEDUSINGTHISSPLIT-GATEPROCESS.
TOFURTHEREXPANDTHISPRODUCTFAMILY,DURINGTHEFIRSTQUARTERWERELEASED 30-VOLTAND 80-VOLTPROCESSVARIANTS. THESEPRODUCTSENABLEHIGH-POWERDENSITYSWITCHINGPACKAGEDINASMALLFORM-FACTORFEATURINGVERYLOW RDS(O)NANDBALANCEDGATECHARGE.
INTHESAMEINNOVATIVEPACKAGE,WERELEASEDANOTHERPRODUCTTHATSHOWSINDUSTRY-LEADING RDS(ON)PERFORMANCE. THESEPRODUCTSSIGNIFICANTLYIMPROVEPOWEREFFICIENCYANDAREIDEALLYSUITEDFORARANGEOFDEMANDINGCONSUMER,COMPUTING,TELECOMMUNICATIONSANDINDUSTRIALAPPLICATIONS.
TURNINGTOANALOG,WEHADAVERYSTRONGQUARTERONNEWPRODUCTRELEASESWITH 83NEWPRODUCTSACROSS 7PRODUCTLINES. INSUPPORTOFTHECONSUMERPRODUCTSMARKET,WERELEASEDAFAMILYOFHIGH-EFFICIENCYSYNCHRONOUS 4-AMPAND 5-AMP DCTO DCCONVERTERS. THESEDEVICESOPERATEATHIGHEFFICIENCYACROSSLIGHTLOADANDFULLLOADCONDITIONS,MAKINGTHEMWELL-SUITEDFORDISTRIBUTEDPOWERARCHITECTURESINLARGE-SCALECONSUMERPRODUCTSINCLUDING TVS,SET-TOP-BOXESANDGAMINGCONSOLES.
FORTHEPORTABLEMARKETSPECIFICALLY,WEARERECEIVINGSTRONGCUSTOMERINTERESTFOROURNEWLYRELEASEDFILTER-LESSCLASS-DAUDIOAMPLIFIERS. THISPRODUCT’SHIGHEFFICIENCYANDMINIATUREFOOTPRINTMAKETHESEDEVICESATTRACTIVEFORBATTERYPOWEREDAPPLICATIONSSUCHASWIRELESSSPEAKERS.
FORTHECOMMUNICATIONSMARKET,OURNEWANALOGPRODUCTSCONSISTEDOFOURRECENTLYRELEASED LVCAND AUPSINGLEGATELOGICFAMILIESINONEOFTHEWORLD’SSMALLESTLOGICPACKAGES,IDEALLYSUITEDFORUSEINSMARTPHONES. WEALSOOFFERTHESEPRODUCTSINAPACKAGETHATISFOOTPRINT-COMPATIBLETOCHIPSCALEDEVICES,BUTMOREROBUSTANDATMOREATTRACTIVEPRICEPOINTSTHANCHIPSCALEALTERNATIVES.
FORCELLPHONECHARGERSANDADAPTERS,WERELEASEDALOWCOST,SECONDARYSIDESYNCHRONOUSRECTIFIERWITHBUILT-IN MOSFETSTHATOFFERIMPROVEDPOWEREFFICIENCYANDBETTERTHERMALPERFORMANCETHANTRADITIONALSOLUTIONS. INADDITION,WEALSOINTRODUCEDAHIGH-PERFORMANCE ACTO DCPOWERSUPPLYCONTROLLERFORCHARGERSANDADAPTERAPPLICATIONSTHATACHIEVESEXCELLENTREGULATIONANDHIGHAVERAGEEFFICIENCY.
OUR ACTO DCPRODUCTLINECONTINUESTOSEEVERYSTRONGMARKETACCEPTANCEWITH 16MAJORWINSFORCELLPHONECHARGERANDADAPTERAPPLICATIONSACROSS 10DIFFERENTCUSTOMERS. INADDITION,WESECUREDSEVERALLARGEWINSWITHCOMMUNICATIONSCUSTOMERSFOROURLOWVOLTAGE DCTO DCCONVERTERSFOR WIFIMODULES,ASWELLAS HALLSENSORADOPTIONSINCELLPHONEANDSMARTPHONEPLATFORMS.
DURINGTHEFIRSTQUARTER,WECONTINUEDTOEXPANDOURFAMILYOF LEDDRIVERSFORUSEINBULB-REPLACEMENTANDGENERALLIGHTINGAPPLICATIONS. FORTHEINDUSTRIALMARKET,WERELEASEDA 60VOLT DCTO DCCONVERTERSPECIFICALLYDESIGNEDTOMEETTHEDEMANDSOFDIMMABLE MR16 LEDLAMPS,ASWELLASASINGLEPHASEBRUSHLESS DCMOTORCONTROLLERFORFANSANDBLOWERS.
INSUMMARY,WEAREPLEASEDWITHOURABOVESEASONALRESULTSINTHEFIRSTQUARTER,WHICHFURTHERDEMONSTRATEOUROPERATINGLEVERAGEINOURMODELANDOURABILITYTOGROWPROFITSANDGENERATECASH. WECONTINUETOINCREASEOURCONTENTATEXISTINGCUSTOMERSWITHOUREXPANDEDPRODUCTPORTFOLIO,WHILELEVERAGINGOURINNOVATIVEMANUFACTURINGANDPACKAGINGEXPERTISE.
DIODESONCEAGAINSECUREDIMPRESSIVEDESIGNWINSACROSSPORTABLE,CONSUMER,COMPUTING,AUTOMOTIVEANDINDUSTRIALAPPLICATIONSANDCONTINUESTODELIVERACONSISTENTSTREAMOFNEWPRODUCTSTOENSUREFURTHERGROWTHINTHESEMARKETS. WITHTHAT, IWILLOPENTHEFLOORTOQUESTIONS. OPERATOR?
