EXHIBIT 99.35
Diodes Incorporated
FOR IMMEDIATE RELEASE
Diodes Incorporated Reports Third-Quarter 2001 Results
Westlake Village, California, October 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
third quarter ended September 30, 2001.
Revenues for the third quarter were $22.7 million, a sequential increase of 8%
from the second quarter of 2001, but a 29.8% decrease as compared to $32.3
million for the third quarter of 2000.
Third quarter results include the effect of a $650,000 charge related to
distribution pricing adjustments taken during the quarter and a $400,000
inventory write-down due to declines in wafer pricing. The Company reported a
net loss of $847,000, or $(0.10) per diluted share, as compared to net income of
$4.7 million, or $0.50 per share, for the three months ended September 30, 2000.
Commenting on the quarter, C.H. Chen, Diodes' President and CEO, said, "In what
continues to be a very tough market climate, Diodes has maintained our focus on
growing market share, aggressive cost containment and continuing our excellence
in manufacturing and customer service. We introduced a range of new products in
the third quarter that improve the trade-off between size, performance and power
consumption for surface-mount discrete devices. And we continue to develop
proprietary technologies, such as our new performance Zener design, that will
position Diodes as a technology leader for discrete devices as the semiconductor
industry cycle improves."
Third Quarter Highlights:
> Develops breakthrough performance Zener technology
> Launches compact 4-line array Schottky bus terminator for high-speed data
systems
> Announces alliance with Microsemi Corporation to license advanced
Powermite(R)3 surface-mount package
> Introduces new SOT-523 line using ultra-miniature packaging technology
> Named to Deloitte & Touche's prestigious "Los Angeles Technology Fast 50"
program
> Inventory reduced $3 million from prior quarter and $11 million from
beginning of year
Diodes continued to experience adverse pricing pressures during the third
quarter across all product lines. The Company's gross profit margin was 10.7% in
the third quarter, as compared to 19.3% in the prior quarter and 34.4% in the
third quarter of 2000. However, excluding the effects of the aforementioned
pricing adjustments for inventory, gross profit margin for the third quarter
would have been approximately 15.4%.
For the first nine months of 2001, the Company earned $199,000, or $0.02 per
diluted share, on revenues of $69.4 million, compared to net income of $12.1
million, or $1.31 per diluted share, on revenues of $92.4 million for the same
period in 2000.
"We believe that we currently are in the last stages of the industry-wide
inventory correction," Mr. Chen noted. "We have recently begun to see
stabilization in pricing and a modest uptrend in orders. In addition, capacity
utilization increased sequentially at both our mainland China facility,
Diodes-China, from 45% last quarter to 52% this quarter, and at our wafer
facility, FabTech, from 35% to 45%. But lead times on new orders are shorter
than in any period in our experience; hence, visibility for the fourth quarter
and beyond remains limited. We are cautiously optimistic that the fourth quarter
will show sequential sales growth and that the third quarter was the low point
of the industry inventory correction. Given the rather uncertain global economic
picture, we continue to keep a tight rein on our cost structure and seek ways to
improve the efficiency of all our operations."
Continued cost-cutting efforts resulted in SG&A expenses reduced by $1.2 million
or 23.9% to $3.8 million, or 16.9% of sales, in the quarter, as compared to $5
million, or 15.6% of sales, in the third quarter of 2000. Year-to-
date, SG&A expenses have been reduced by $4.4 million or 29.5% to 15.1% of sales
compared to 16.1% of sales for the same period last year. Year-to-date SG&A
expenses also include approximately $1.5 million in SG&A expenses associated
with the FabTech facility, acquired in December 2000, which were not included in
last year's SG&A. Without these FabTech SG&A expenses, year-to-date SG&A was
reduced by $5.8 million or 39.3%.
"We are very pleased with the progress made during the quarter in introducing
new products, developing partnerships with other industry leaders, and securing
design wins on next-generation equipment from many of the leading names in
computing and communications," Mr. Chen continued. "While production runs have
not always scaled as quickly as anticipated, we believe this provides an
indication of the ongoing strength of these customer relationships.
"In the third quarter, our customer access and market share in our targeted
product ranges were at an all time high. Diodes is building a brand based on
innovation leadership in discrete technology. And we continue to extend the
geographic reach of our sales organization into Europe and China, as well as our
unsurpassed customer service reputation."
Mr. Chen noted that Diodes had recently negotiated an increased credit facility
to $20 million at its mainland China manufacturing facility, increasing Diodes'
financial flexibility. "Although we have slowed capital expenditures to a
maintenance level, we have manufacturing capacity at both Diodes-China and
FabTech, and we will continue to invest to capture emerging opportunities as
market conditions dictate," he concluded.
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 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
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------- -------------------------------
2000 2001 2000 2001
------------ ------------ ------------ ------------
Net sales $ 32,332,000 $ 22,698,000 $ 92,369,000 $ 69,447,000
Cost of goods sold 21,211,000 20,279,000 62,322,000 58,863,000
------------ ------------ ------------ ------------
Gross profit 11,121,000 2,419,000 30,047,000 10,584,000
Selling, general and administrative
expenses 5,050,000 3,845,000 14,862,000 10,482,000
------------ ------------ ------------ ------------
Income from operations 6,071,000 (1,426,000) 15,185,000 102,000
Other income (expense)
Interest income 128,000 80,000 323,000 222,000
Interest expense (332,000) (592,000) (920,000) (1,903,000)
Other 135,000 94,000 181,000 211,000
------------ ------------ ------------ ------------
(69,000) (418,000) (416,000) (1,470,000)
Income before income taxes and
minority interest 6,002,000 (1,844,000) 14,769,000 (1,368,000)
Income tax benefit (provision) (1,170,000) 1,052,000 (2,197,000) 1,741,000)
------------ ------------ ------------ ------------
Income before minority interest 4,832,000 (792,000) 12,572,000 373,000
Minority interest in joint venture (182,000) (55,000) (462,000) (174,000)
earnings
------------ ------------ ------------ ------------
Net income $ 4,650,000 $ (847,000) $ 12,110,000 $ 199,000
============ ============ ============ ============
Earnings per share
Basic $ 0.57 $ (0.10) $ 1.50 $ 0.02
Diluted $ 0.50 $ (0.10) $ 1.31 $ 0.02
============ ============ ============ ============
Weighted average shares outstanding
Basic 8,101,667 8,147,902 8,053,675 8,142,333
Diluted 9,260,765 8,815,581 9,259,095 8,928,711
============ ============ ============ ============
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
ASSETS
December 31, September 30,
2000 2001
------------ ------------
(Unaudited)
CURRENT ASSETS
Cash $ 4,476,000 $ 2,531,000
Accounts receivable
Customers 19,723,000 19,924,000
Related parties 615,000 1,412,000
Other 26,000 --
------------ ------------
20,364,000 21,336,000
Less allowance for doubtful receivables 311,000 249,000
------------ ------------
20,053,000 21,087,000
Inventories 31,788,000 20,899,000
Deferred income taxes, current 4,387,000 4,382,000
Prepaid expenses and other current assets 686,000 1,407,000
------------ ------------
Total current assets 61,390,000 50,306,000
PROPERTY, PLANT AND EQUIPMENT, at cost, net
of accumulated depreciation and amortization 45,129,000 46,326,000
DEFERRED INCOME TAXES, non-current 616,000 2,914,000
OTHER ASSETS
Goodwill, net 5,318,000 5,386,000
Other 497,000 593,000
------------ ------------
TOTAL ASSETS $112,950,000 $105,525,000
============ ============
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, September 30,
2000 2001
------------ -------------
(Unaudited)
CURRENT LIABILITIES
Line of credit $ 7,750,000 $ 7,604,000
Accounts payable
Trade 10,710,000 5,712,000
Related parties 1,008,000 3,384,000
Accrued liabilities 8,401,000 6,115,000
Income taxes payable 1,370,000 --
Current portion of long-term debt
Related party 11,049,000 4,490,000
Other 3,811,000 3,647,000
------------ -------------
Total current liabilities 44,099,000 30,952,000
LONG-TERM DEBT, net of current portion
Related party 2,500,000 8,750,000
Other 13,497,000 12,467,000
------------ -------------
MINORITY INTEREST IN JOINT VENTURE 1,601,000 1,776,000
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 9,223,705
shares issued and outstanding at December 31, 2000
and September 30, 2001, respectively 6,134,000 6,149,000
Additional paid-in capital 7,143,000 7,231,000
Retained earnings 39,758,000 40,184,000
Translation loss -- (202,000)
------------ -------------
53,035,000 53,362,000
Less:
Treasury stock - 1,075,672 shares of common stock, at cost 1,782,000 1,782,000
------------ -------------
Total stockholders' equity 51,253,000 51,580,000
------------ -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $112,950,000 $ 105,525,000
============ =============
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