Exhibit 99.45
Diodes Incorporated
FOR IMMEDIATE RELEASE
Diodes, Inc. Reports First Quarter 2002 Results
Sequential revenue growth of 4.4% and return to profitability
Westlake Village, California, May 1, 2002 - Diodes Incorporated (Nasdaq: DIOD),
a leading manufacturer and supplier of high quality discrete semiconductors,
primarily to the communications, computing, industrial, consumer electronics and
automotive markets, today reported financial results for the first quarter of
fiscal year 2002 ended March 31, 2002.
First Quarter Highlights:
Return to profitability, with net income for the first quarter of $208,000 as
compared to a loss of $76,000 for the fourth quarter
Gross margin improves 230 basis points sequentially from the fourth quarter
Manufacturing capacity utilization increases to an average of 60%
Inventory reduced over $3 million from year-end
Opened offices in Hong Kong and Shenzhen, China
Revenues for the first quarter of 2002 were $26.9 million, a
sequential increase of 4.4% from the fourth quarter of 2001, and an increase of
4.6% from the first quarter of 2001.
Net income for the quarter was $208,000, as compared to
$521,000 for the three months ended March 31, 2001 and compared to a net loss of
$76,000 in the fourth quarter ended December 31, 2001. Diluted earnings per
share were $0.02 for the first quarter of 2002, as compared to $0.06 for the
same period last year.
Commenting on the quarter, C.H. Chen, Diodes' President and
CEO, said, "We are encouraged by our progress in the first quarter and we are
especially pleased to report that Diodes has returned to profitability. After
several very challenging quarters in the semiconductor industry, we are starting
to see signs of renewed industry growth with increased capacity utilization
rates and lower customer inventories. A combination of these factors, cost
containment measures, new products and new customers enabled Diodes to achieve
positive net income for the quarter."
Diodes growth in the first quarter continued to be driven by
the Asian market, which accounted for 47% of sales, up from 39% in the same
period last year. During the quarter, the Company opened an office in Hong Kong,
enabling Diodes to better provide service and support to its growing Asian
customer base, and opened an office in Shenzhen, in mainland China. In addition,
European sales are showing positive trends.
While unit demand is up, price competition continues to be
intense, as average selling prices fell. Increased capacity utilization coupled
with manufacturing cost saving measures contributed to an improved gross profit
margin of 16.2% in the first quarter of 2002, compared to 13.9% in the fourth
quarter of 2001.
"For the quarter, capacity utilization increased
sequentially at both our mainland China facility, Diodes-China, and at our wafer
facility, Diodes-FabTech. We have seen indications of renewed distribution
ordering and a slight lengthening in order times from OEMs. However, continuing
to improve the efficiency of our operations and bring down unit costs will
remain a major operational focus for the balance of 2002," stated Mr. Chen.
For the quarter, SG&A expenses were $3.8 million as compared
to $3.7 million in the fourth quarter. As a percentage of sales, SG&A expenses
decreased to 14.0% from 14.3% in the fourth quarter.
"Diodes is gaining significant momentum as a provider of
next-generation surface-mount discrete devices across all market segments. In
2001, we escalated our research & development efforts with the creation of a
cross-functional R&D team to develop new technology and increase our product
range towards higher margin, differentiated products. For the first quarter, we
increased our R&D spending to $313,000 from $142,000 in the prior quarter and we
are just beginning to realize the benefits of this multi-year strategy," said
Mr. Chen.
"Our customer access and market share for targeted products
continue to improve," Mr. Chen continued. "During the quarter, we introduced a
number of new products including our SBM1040, the first in our Powermite(R)3
platform, and designed for applications requiring a compact profile such as
DC-DC converters, switch mode power supplies, notebook PCs, graphics cards, and
handheld and portable electronics. Also introduced was our DLP05LC
low-capacitance data line protection device designed for portable electronics,
including PDAs and laptop computers and other computer peripherals. In addition
we secured several design wins with multiple qualifications in our target end
equipment, such as notebook, flat panel display, digital camera, mobile handset,
set top box, and DC-DC conversion. We will continue to build on this momentum
throughout 2002 and develop proprietary product lines that will enhance the
depth and breadth of our product range."
The Company continued to manage inventories, which decreased
$3 million or 17% to $14.7 million from $17.8 million at the end of 2001. In
addition, Diodes paid down approximately $2.5 million in long-term debt and $3.2
million on its revolving credit line, ending the first quarter with $6.1 million
in cash.
Mr. Chen concluded, "We are encouraged by signs that
industry fundamentals are improving. We believe that both distributor and our
own inventory levels are at a low point and we would anticipate beginning to
rebuild inventories over the balance of the year to support customer needs. As
we continue to improve capacity utilization and introduce new higher margin,
proprietary products, we expect to continue to benefit from the operating
leverage inherent in our business. Nevertheless, we remain cautious about the
timing of improvements in capital spending and PC demand. Therefore, for the
second quarter, we are projecting similar revenue increases, with gross margin
increasing another 200-300 basis points resulting in improved profitability."
About Diodes Incorporated
Diodes Incorporated (Nasdaq: DIOD) is a leading manufacturer and supplier of
high-quality discrete semiconductor products, serving the communications,
computer, industrial, consumer electronics and automotive markets. The Company
operates two Far East subsidiaries, Diodes-China (QS-9000 and ISO-14001
certified) in Shanghai and Diodes-Taiwan (ISO-9000 certified) in Taipei.
Diodes-China's manufacturing focus is on surface-mount devices destined for
wireless devices, notebook computers, pagers, PCMCIA cards and modems, among
others. Diodes-Taiwan is our Asia-Pacific sales, logistics and distribution
center. The Company's 5" wafer foundry, Diodes-FabTech (QS-9000 certified),
specializes in Schottky products and is located just outside Kansas City,
Missouri. The Company's ISO-9000 corporate sales, marketing, engineering and
logistics headquarters is located in Southern California. For further
information, visit the Company's website at http://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. Potential risks and uncertainties include, but are not limited to,
such factors as fluctuations in product demand, the introduction of new
products, the Company's ability to maintain customer and vendor relationships,
technological advancements, impact of competitive products and pricing, growth
in targeted markets, risks of foreign operations, and other information detailed
from time to time in the Company's filings with the United States Securities and
Exchange Commission.
Source: Diodes Incorporated CONTACT: Crocker Coulson, Partner, Coffin
Communications Group; (818) 789-0100 e-mail: crocker.coulson@coffincg.com or
Carl Wertz, Chief Financial Officer, Diodes, Inc.; (805) 446-4800
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.
CONSOLIDATED CONDENSED INCOME STATEMENT and BALANCE SHEET FOLLOWS
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
------------------------------------------
2001 2002
------------------- -------------------
Net sales $ 25,748,000 $ 26,924,000
Cost of goods sold 21,627,000 22,572,000
------------------- -------------------
Gross profit 4,121,000 4,352,000
Research and development expenses 139,000 313,000
Selling, general and administrative expenses 3,045,000 3,765,000
------------------- -------------------
Total operating expenses 3,184,000 4,078,000
Income from operations 937,000 274,000
Other income (expense)
Interest income 66,000 8,000
Interest expense (740,000) (346,000)
Other (96,000) 16,000
------------------- -------------------
(770,000) (322,000)
Income before income taxes and minority interest 167,000 (48,000)
Income tax benefit 429,000 295,000
------------------- -------------------
Income before minority interest 596,000 247,000
Minority interest in joint venture earnings (75,000) (39,000)
------------------- -------------------
Net income $ 521,000 $ 208,000
=================== ===================
Earnings per share
Basic $ 0.06 $ 0.03
=================== ===================
Diluted $ 0.06 $ 0.02
=================== ===================
Weighted average shares outstanding
Basic 8,132,559 8,165,325
=================== ===================
Diluted 9,029,628 8,774,016
=================== ===================
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
ASSETS
December 31, March 31,
2001 2002
------------------- -------------------
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 8,103,000 $ 6,113,000
Accounts receivable
Customers 16,250,000 16,814,000
Related parties 1,486,000 4,481,000
------------------- -------------------
------------------- -------------------
17,736,000 21,295,000
Less: Allowance for doubtful receivables 343,000 325,000
------------------- -------------------
17,393,000 20,970,000
Inventories 17,813,000 14,677,000
Deferred income taxes, current 4,368,000 4,368,000
Prepaid expenses, income taxes and other current assets 1,266,000 1,844,000
------------------- -------------------
------------------- -------------------
Total current assets 48,943,000 47,972,000
PROPERTY, PLANT AND EQUIPMENT, at cost, net
of accumulated depreciation and amortization 44,925,000 46,430,000
DEFERRED INCOME TAXES, non-current 3,672,000 3,733,000
OTHER ASSETS
Goodwill, net 5,090,000 5,090,000
Other 628,000 687,000
------------------- -------------------
TOTAL ASSETS $ 103,258,000 $ 103,912,000
=================== ===================
The accompanying notes are an integral part of these financial statements.
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, March 31,
2001 2002
------------------ ------------------
(Unaudited)
CURRENT LIABILITIES
Line of credit $ 6,503,000 $ 3,300,000
Accounts payable
Trade 6,098,000 8,247,000
Related parties 3,149,000 3,309,000
Accrued liabilities 5,062,000 5,600,000
Current portion of long-term debt
Related party 2,500,000 2,500,000
Other 5,833,000 8,608,000
Current portion of capital lease obligations -- 114,000
------------------ ------------------
Total current liabilities 29,145,000 31,678,000
LONG-TERM DEBT, net of current portion
Related party 7,500,000 7,500,000
Other 13,664,000 8,431,000
CAPITAL LEASE OBLIGATIONS, net of current portion -- 2,633,000
MINORITY INTEREST IN JOINT VENTURE 1,825,000 1,864,000
STOCKHOLDERS' EQUITY
Class A convertible preferred stock - par value $1.00 per share; 1,000,000
shares authorized;
no shares issued and outstanding -- --
Common stock - par value $0.66 2/3 per share;
30,000,000 shares authorized; 9,227,664 and 9,242,664
shares issued and outstanding at December 31, 2001
and March 31, 2002, respectively 6,151,000 6,161,000
Additional paid-in capital 7,310,000 7,762,000
Retained earnings 39,882,000 40,090,000
------------------ ------------------
53,343,000 54,013,000
Less:
Treasury stock - 1,075,672 shares of common stock, at cost 1,782,000 1,782,000
Accumulated other comprehensive loss 437,000 425,000
------------------ ------------------
2,219,000 2,207,000
Total stockholders' equity 51,124,000 51,806,000
------------------ ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 103,258,000 $ 103,912,000
================== ==================
The accompanying notes are an integral part of these financial statements.