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EXHIBIT 99.29
Diodes Incorporated
FOR IMMEDIATE RELEASE
Diodes, Inc. Reports Second Quarter 2001 Results
Westlake Village, California, July 31, 2001 -- Diodes Incorporated (Nasdaq:
DIOD), a leading manufacturer and supplier of high quality discrete
semiconductors, primarily to the communications, computing, industrial, consumer
electronics and automotive industries, today reported financial results for the
second quarter ended June 30, 2001.
Revenues for the second quarter were $21.0 million, a decrease of 36% as
compared to $32.6 million for the comparable quarter in 2000. Net income for the
same period decreased 88% to $525,000, as compared to $4.3 million for the three
months ended June 30, 2000.
Diluted earnings per share were $0.06 for the second quarter of 2001, a decrease
of 87% as compared to $0.46 per diluted share for the same period last year.
For the first six months of 2001, the Company earned $1.0 million, or $0.12 per
diluted share, on revenues of $46.7 million, compared to net income of $7.5
million, or $0.81 per diluted share, on revenues of $60.0 million for the same
period in 2000.
Commenting on the Company's financial results, C. H. Chen, President and Chief
Executive Officer of Diodes, said, "In the second quarter, Diodes has continued
to be challenged by one of the deepest, most rapid downturns in the history of
the semiconductor industry. This turbulent market environment adversely impacted
our sales, margins and product mix. I am pleased to report that management has
taken swift and decisive action to adjust our cost structure and manage our
working capital, such that the Company was able to report our forty-fifth
consecutive quarter of profitability.
"Diodes has maintained our strategic focus on those issues we believe will drive
our success over the next industry cycle. This includes maintaining our
world-class customer service orientation, expanding our sales organization to
reach markets such as Europe and mainland China, forming mutually beneficial
alliances with industry leaders and developing new devices that apply innovative
technology to solve our customers' needs."
Second Quarter Highlights:
Forty-fifth consecutive quarter of profitability with Q2 EPS of $0.06
Appointment of European sales manager
Restructured balance sheet increases financial flexibility
The Company's gross profit margin was 19.3% in the second quarter, as compared
to 16.0% in the prior quarter and 32.2% in the second quarter of 2000. This
decrease as compared to the prior year reflects reduced capacity utilization of
the Company's manufacturing assets at both FabTech and Diodes-China and
significant pricing pressure in all markets.
"Since becoming aware of the magnitude of this correction at the end of last
year, Diodes has continued to look at every area of our organization for
opportunities to adjust costs and increase efficiencies. We also made progress
in reducing fixed costs and improving manufacturing yields at our wafer foundry.
As a result, despite a sequential drop in market demand, we were able to improve
our gross margin by over 3 percentage points," said Chen.
SG&A expenses were reduced by $1.8 million to 16.4% of net sales in the quarter
compared to 16.2% in the second quarter of 2000, reflecting significant
cost-saving initiatives to bring overhead expenses in-line with a reduced
revenue base.
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"During the second quarter, demand in North America remained weak, as
distributors and OEM's continued to reduce inventory levels following several
quarters of aggressive ordering to support what proved to be overly optimistic
growth forecasts. By contrast, unit demand in the Asian market increased in Q2,
but was accompanied by severe pricing pressures and a product shift towards
lower-margin devices. We believe that there are some structural forces that are
likely to create a more normalized demand picture by the end of the year, but
given the significant uncertainty as to the timing of this event, we continue to
manage for these contingencies."
"Even during this challenging period, Diodes has continued to maintain or
increase market share, while laying the groundwork to penetrate new markets in
geographic regions that we believe will be key to our future growth. We are
pleased with our rapid progress in building a sales organization capable of
winning customers in Europe. In addition, Diodes is forming a Hong Kong sales
subsidiary that will facilitate entry into the China market. Most importantly,
we have continued to build our research and development capability and new
product pipeline, so as to develop devices that will deliver unique value to our
customers and support sustainable, high margin programs. This is part of our
strategy to position Diodes as a technology leader in discrete markets," said
Chen.
Chen noted that Diodes generated cash flow from operations of $4.2 million in
the first half of this year, in part attributable to a 25% decrease of
inventories to $23.9 million from $31.8 million at the beginning of this year.
In addition, the Company recently renegotiated payment terms on $10 million of
the note assumed as part of the FabTech wafer foundry purchase from Lite-On
Semiconductor Corp. (LSC), from 12 months to 36 months, reducing the current
portion of this debt by $7.5 million. "With the existing credit facility, we
believe the Company has sufficient liquidity to meet our foreseeable
requirements," Chen concluded.
Join us for our conference call to be broadcast live at 9:00 am PDT (12 noon
EDT) today, available via webcast at the investor section of Diodes' website at:
www.diodes.com.
About Diodes Incorporated
Diodes, Inc. (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 & 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
newly acquired 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
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DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------------- -------------------------------
2000 2001 2000 2001
------------ ------------ ------------ ------------
NET SALES $ 32,600,000 $ 21,001,000 $ 60,037,000 $ 46,749,000
Cost of Goods Sold 22,111,000 16,957,000 41,111,000 38,584,000
------------ ------------ ------------ ------------
Gross profit 10,489,000 4,044,000 18,926,000 8,165,000
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 5,270,000 3,453,000 9,812,000 6,637,000
------------ ------------ ------------ ------------
Income from operations 5,219,000 591,000 9,114,000 1,528,000
OTHER INCOME (EXPENSE)
Interest income 143,000 69,000 195,000 136,000
Interest expense (372,000) (570,000) (588,000) (1,310,000)
Other 40,000 220,000 46,000 123,000
------------ ------------ ------------ ------------
(189,000) (281,000) (347,000) (1,051,000)
Income before income taxes and minority
interest 5,030,000 310,000 8,767,000 477,000
INCOME TAX BENEFIT (PROVISION) (535,000) 260,000 (1,027,000) 689,000
------------ ------------ ------------ ------------
Income before minority interest 4,495,000 570,000 7,740,000 1,166,000
MINORITY INTEREST IN JOINT VENTURE
EARNINGS (175,000) (45,000) (280,000) (119,000)
------------ ------------ ------------ ------------
NET INCOME $ 4,320,000 $ 525,000 $ 7,460,000 $ 1,047,000
============ ============ ============ ============
EARNINGS PER SHARE
Basic $ 0.54 $ 0.06 $ 0.93 $ 0.13
Diluted $ 0.46 $ 0.06 $ 0.81 $ 0.12
============ ============ ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 8,072,885 8,143,318 8,029,413 8,139,501
Diluted 9,340,505 8,896,326 9,250,361 8,970,250
============ ============ ============ ============
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DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
ASSETS
DECEMBER 31, JUNE 30,
2000 2001
------------ ------------
(UNAUDITED)
CURRENT ASSETS
Cash $ 4,476,000 $ 2,867,000
Accounts receivable
Customers 19,723,000 19,267,000
Related parties 615,000 1,467,000
Other 26,000 --
------------ ------------
20,364,000 20,734,000
Less allowance for doubtful receivables 311,000 250,000
------------ ------------
20,053,000 20,484,000
Inventories 31,788,000 23,939,000
Deferred income taxes, current 4,387,000 4,382,000
Prepaid expenses and other current assets 686,000 912,000
------------ ------------
Total current assets 61,390,000 52,584,000
PROPERTY, PLANT AND EQUIPMENT, at cost, net
of accumulated depreciation and amortization 45,129,000 47,569,000
DEFERRED INCOME TAXES, non-current 616,000 2,173,000
OTHER ASSETS
Goodwill, net 5,318,000 5,463,000
Other 497,000 459,000
------------ ------------
TOTAL ASSETS $112,950,000 $108,248,000
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DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
DECEMBER 31, JUNE 30,
2000 2001
------------ ------------
(UNAUDITED)
CURRENT LIABILITIES
Line of credit $ 7,750,000 $ 8,055,000
Accounts payable
Trade 10,710,000 6,234,000
Related parties 1,008,000 2,713,000
Accrued liabilities 8,401,000 5,472,000
Income taxes payable 1,370,000 329,000
Current portion of long-term debt
Related party 11,049,000 3,240,000
Other 3,811,000 3,550,000
------------ ------------
Total current liabilities 44,099,000 29,593,000
LONG-TERM DEBT, net of current portion
Related party 2,500,000 10,000,000
Other 13,497,000 14,314,000
------------ ------------
MINORITY INTEREST IN JOINT VENTURE 1,601,000 1,720,000
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; 9,201,704 and 9,222,205
shares issued and outstanding at December 31, 2000
and June 30, 2001, respectively 6,134,000 6,148,000
Additional paid-in capital 7,143,000 7,224,000
Retained earnings 39,758,000 41,031,000
------------ ------------
53,035,000 54,403,000
Less:
Treasury stock -- 1,075,672 shares of common stock, at cost 1,782,000 1,782,000
------------ ------------
Total stockholders' equity 51,253,000 52,621,000
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $112,950,000 $108,248,000
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