DIOD - Earnings call transcript Q4 2019

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Operator

Good afternoon and welcome to Diodes Incorporated Fourth Quarter and Full-Year 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for the question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded today, Tuesday, February 11, 2020.

I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. ahead. go please Leanne,

Leanne Sievers

welcome call. fourth of I'm Relations Diodes' and financial Shelton and results Investor conference Leanne firm. to afternoon quarter Diodes' XXXX Group, Good Sievers, President

are Vice President Worldwide Keh-Shew today Joining Director CEO, Yang; Marketing, of President Laura of Officer, Whitmire; Financial Investor Sales Dr. Relations, us Brett Lu; Diodes' Emily Chief and and and Mehrl.

subject over the to like to as listeners that results Before closing today customary I'd they company procedures I registered remind quarterly the the Lu, accounting are turn finalizing its review to Dr. firm. the company's preliminary, announced call public are and our independent by

As Form such, revision, its XX-K to for subject its XXXX. are these unaudited fiscal and files until the company year results

which and response claims and that to In Litigation XXXX. addition, in Harbor are the questions. the management's subject Act Safe the management of Private statements forward-looking in make for prepared uncertainties additional to forward-looking your protection of company Therefore statements statements, risks the remarks Reform contained may forward-looking is Securities contain

Exchange and may those company's to the including discussed you therefore refer discussion we detailed Securities more XX-K a and from results the and with uncertainties Forms in risks differ filings XX-Q. today the and Actual Commission, of

the to the change, law. as In XXXX. not of in required today, represent market update Diodes to may company's addition, February extent conditions or except assumes as future any management's by projections to projections these XX, performance may future estimates as the no applicable obligation

GAAP terms. in release and non-GAAP this certain provide GAAP in include reconciliations of items, press press company's measures non-GAAP are details. conference statements release Included and call information of the and will company's additional definitions to during Additionally, management which the financial discussions and

net release Also and during to net conference company's common throughout press call. attributable income. to stockholders We GAAP refer management income as this the statements

in listen available to section the call webcast for unable you at www.diode.com. website days be at will the XX via time of a Diodes’ For recording those entire investor of to this relations

CEO, turn And Lu, the now Dr. Lu, I'll call and go to please diodes Dr. Keh-Shew President over ahead.

Keh-Shew Lu

and as Leanne. another Thank Diodes growth, financials everyone, solid and record generating cash as revenue for profitability joining measures increasing Welcome, across us you, XXXX well you all thank quarter was flow. today. year for

our industrial record Additionally, margin automotive performance from in be contributors products combined to Pericom and our with continue record IC expansion. sales market key and growth our to

to As of a strong debt strengthen balance result have cash and reduce generation, to sheet able also flow million. our $XXX we significantly long-term been our below

of market, growth X.X% outperformed which in server down X.X% again Our once our full-year was XXXX. revenue

is our serve performance our product above-market consistent sales solutions to targeted This a expanded provider, total a leveraging customer broadened relationships. of and direct portfolio result as strategy

resulted addressing areas. increased end market Our application approach in has share new while content across gains also equipment, also key and

Looking forward maintain and take steps year, to and long-term strong performance margin good operating the gross toward continued our to we achievement as of financial we further expect of coming XX% goals margin. XX% our results,

margin expansion. approaching With well-positioned and further of revenue, target total XX% and industrial we drive are markets the automotive to our growth of

automotive, servers, on the across high-end XG, focus of and remains Our end increasing as markets well content growing as storage, IoT. industrial,

in take the coronavirus I to the Brett, like I to China. to comment a Before moment about over turn would outbreak call

as the outlook. quarter will of family and Brett communities. XXXX First global to protect and and priority safety, associates, proactive foremost, the our our our first this further well measures well-being people of the their taking as is and as top Diodes is discuss health, part the

brief to Additionally, I would provide like on proposed acquisition how update of Semiconductor. a Lite-On

was holding wholly-owned than an of which to XX.X% completed in [NT$XXX] which a entity per stock will XX half their announced on approved As Semiconductor Lite-On they January [indiscernible], [indiscernible] of in transition of January, share. become we more in or resolution [indiscernible] at a sold subsidiary. outstanding This

approval Upon merge. shares of for in On-Bright be [indiscernible], and XX.XX% of NT$XXX Semiconductors exchanged remain On-Bright completion the of day between the will the record Lite-On merger per and the share on

in to the revenant announcement, in help gross stated taken review actions by the order As were facilitate our Chinese we authorities.

our full Semiconductor which the results, turn in planned. and anticipate me to XXXX We half Brett acquisition of our our will in quarter the remain of year. that, be discuss With will now confident; as guidance has approval to over call more Lite-On first the year been regulatory financial cross second fourth final and secured, quarter let Once we the detail.

Brett Whitmire

Dr. Lu afternoon and everyone. Thanks good

focus would comments refer as a as well for for $XXX.X detailed million comparisons. sequential my results, was line quarter fourth I to you of of review today, compared my or As change our the review to on more each third the the financial press as for will and year-over-year part items Revenue $XXX.X the million, the and full-year of quarter in XXXX. XXXX release

$X.XX XXXX $XXX.X or from record of in of or million XX.X% an billion was XXXX profit XXXX, our X.X% well million billion, of full-year growth markets. the over and of For $XXX to revenue, the compared quarter served increase $X.XX third was quarter fourth a of the XX.X% Gross revenue. revenue for the

to profit gross million of records. revenue year. margin the prior and full-year, the to For gross gross XX.X% Both were or $XXX.X of X% or increased revenue compared in million $XXX.X profit as XX.X%

of asset loss fourth we’re excluded gain which X.X the pretax or million of related sale and XX.X a million for cost. amortization or a X.X and million of revenue of of X.X acquisition quarter non-GAAP million XXXX related asset $XX.X expenses XX% revenue, the on on were impairment, expenses, million a $XX.X million acquisition on XX% land, operating basis intangible GAAP

revenue. million currency quarter compared expense, the million and for prior interest expense million million Income non-controlling million Total other XX.X offset $XX.X in approximately were to fourth interest by quarter. was other income the of $X.X taxes in to partially the expenses and interest of amounted X XXXX before income. or XXX,XXX of previous quarter, in operating $X.X quarter losses, million, XX.X% $XX.X of including million GAAP the X.X of foreign

$X.XX XXXX effective $X.XX compared taxes, Turning $XX.X was income XXXX for net quarter approximately to the the net GAAP to fourth XXXX. for fourth tax third of million used was compute $XX.X rate EPS quarter diluted our share, per quarter for was the XX.X%. or count GAAP income quarter to fourth million or XX.X million The share share per diluted diluted in income GAAP the shares. income

or for share, in diluted the net diluted was or income asset X.X million income XXXX. amortization sales, per $XXX per $XXX.X net million asset fourth share Non-GAAP $X.XX or excluded in per diluted adjusted GAAP impairment quarter full-year cost to a acquisition-related record XXXX which compared million a net was charges. tax gain X.X $XX.X non-cash of $X.XX or intangible and million $XX.X of million share, $X.XX on million land the

non-GAAP XX.X% XXXX. $X.XX $XXX.X full-year net for $X.XX $X.XX diluted per to million This in record XXXX adjusted or compares per Non-GAAP diluted income $XX.X compared diluted a share the per third increased million quarter of million to net share income adjusted in share, XXXX. or or $XXX.X to

last fourth $XXX.X full-year or a in EBITDA revenue XX.X% to of or for of compared quarter the to the million XX.X% XX% record of XX.X% over EBITDA million was or for revenue to $XXX.X year. revenue quarter. $XX.X improved million the XX.X% compared prior of revenue, or million $XX.X

of our operations quarter details. which income Cash for included million GAAP net to earnings provides generated to from have was income net additional reconciliation net for and the $XXX.X and release a flow non-GAAP in the million EBITDA, XXXX, full-year. We $XX.X GAAP income adjusted fourth

the flow included full-year, a $XX.X $XX.X which $XXX.X including a positive was million, the included $XXX.X million $XX.X pay flow $XX.X million full-year, expenditures, for X.X% the down XXXX. the quarter, in $XX.X was $XX.X long-term cash pay capital in million fourth down of capital million expenditures which debt Free of quarter the for million of or the of debt quarter million fourth Net and fourth the includes for full-year cash long-term during which million revenue. for and of positive approximately of

Turning million. the at and million totaled plus to investments fourth balance million. including cash cash Working long-term end short-term $XXX debt, the was current the capital portion and approximately equivalents $XXX.X was $XX sheet, of quarter,

end the prepared last as inventory, fourth total in of increased to the at the quarter Chinese to Year. days terms In XXX quarter, XXX for of the compared quarter, New inventory we

to amounted and a million work days million raw XX was in $X.X increase materials the goods in goods to across $X.X reflects in a finished million, and dollars compared increase quarter quarter $XXX.X inventory Total XXXX. XX which inventory third in approximately process. Finished the

cash X.X% of a basis $XX.X or the the on full-year. for expenditures $XX.X revenue Capital X.X% or were quarter revenue XXXX of million million for and fourth

expect We X% to of within remain of full-year to XXXX our target the X% model revenue. CapEx for

Now, our to outlook. turning

is mid-point, reduction better minus this to For the be approximately of $XXX X.X% sequentially, the approximately quarter which At expect we seasonality. million, X%. typical revenue a represents the XXXX, than plus or first

the These We guidance or margin the be holiday Chinese delayed to XX.X% to production due China. plus X%. ranges the to outbreak reflect expect in following New extended start Year coronavirus gross GAAP minus manufacturing

production, resumed it and chain is us take the demand China, it to to prevailing return potential longer At resulting facilities wafer in XX, this anticipate disruption full we difficult crisis. or the fabs to All but on to time, impact customer supply February to assembly test the the including for fully from production. determine

continue to located to Wuhan manufacturing Chengdu. facilities affected Diodes in many a our As are province, of Hubei a the reminder, does monitor closely companies, and as the and we in other areas have Similar will not facility primary situation. Shanghai

non-GAAP acquisition Continuing for minus with operating XX.X% guidance, assets of quarter first plus be operating of expected expenses expenses, approximately revenue, related our are or intangible amortization adjusted X%. to GAAP which are

$X We approximately million. expect interest expense net be to

expected purchasing non-GAAP Please minus previous XX.X be million, tax, Pericom for calculate adjustments of the quarter used after Our are included EPS are note to income million. is and to XX%, or approximately to for and be anticipated $X.X tax diluted these acquisitions in estimates. shares rate that first accounting not plus X%

the said, to Emily I With that Yang. now call turn over

Emily Yang

afternoon. you, Brett and Thank good

revenue Lu mentioned, year had with Dr. served we a and record XXXX growth Brett markets. in again once outperforming our As

there quarter, Looking is slow of weeks. terms in and during XX the Europe. to was the in range of year. adjustments by is of more slightly, are reflecting softness Christmas mainly inventory down normal typical XX which driven at fourth that in POS no flat Distributor of America the quarter, the our industry end in closely at within inventory the down revenue fourth was our Holiday weeks North

normal in We our expect remain weeks within distributor the to range to of near XX term. inventories XX

of Europe XX%, global North XX%. represented Looking at XXXX, sales for revenue, Asia America the XX% and

computing for represented In and the distributions XX%, our revenue. the market terms market industrial of total communication revenue, XX%, automotive whole of end XX%, consumer year, of XX% XX%

Now, let greater end in review markets the details. me

autos outsource we gains, market share since with growth more the overall increasing Revenue representing we a both end significant than decrease market, total of XXXX. the unit output content XXXX to see of in challenges For and capture the XX% XX% CAGR grew automotive during XX.X% continue as market the market this despite year. this to revenue, in in the

of a abilities result the design driving, key today's electronics our particular, secure an success. have increase Our infotainment including wins cars. and ADAS as been increasing factor highly for telematics to to number application connected of connected in in In of record a

In performance USB high and is ESC important addition, products covers becoming reliability that and more increasingly our robust entire connected driving protection protection solutions spectrum productions applications. for in the offer high

often also greater thereby in optimized negative by surge low you These to inducted noisy spikes increasing continued SBR automotive are surge, proprietary will seeing We success our ensure capability need products are and applications. with against technology. revenue reliability protection high

wide for suitable is infotainment power management, applications control battery connected steering, and areas central product body of display. driving, range lighting, in These

Additionally, in safety, comfort, continue and area. our content to we expand lighting

diodes radar, new lighting, transistors momentum family bipolar product and is lighting we applications, for automotive and Our have gaining also momentum wireless charging. in strong in Zener

PCI Also year. automotive ramp diodes adopted package were to designs expressed space, solution generation in telematic the will in and next X switch the start leading broadly Gen this

also we to for family to by low power products, Gen continue position and the that XXX on X X temperature always consumption quarter, Express our PCI higher packet expand releasing including leadership meets additional the During AEC-Q satisfy requirement. standby requirements switch grade Pericom a the

product. for XX.X% are CAGR Brushless years, representing grew CAGR are Brushless revenue industrial full-year six a over Diodes for market, XXXX, of key applications XX.X%. end motor LED the industrial the size] In six-year [small lightings DC XX.X%.

addressed better operating technology trench have using application for low SGT for density power our well as normal We technology MOSFET as safe market this areas. loss,

characteristics. search end applications SASP are with record high interfaces industry. data features We protection our the ESD more ESC important adoption with and applications platform addressing speed ultra widening links. for leading new multiple IOT this also Diodes increasingly capacitance industrial is of handling and data LDLs low across line meter with in protection

a fan package priority the is We're DC high Schottky saving operating stable leakage for security for industrial fan and this are seeing Schottky and the and offers momentum thermal in diodes in offers under products performance cost DC lighting the ultra hall ideal markets, that sensors For while high-temperature rectify low application. our package I growing applications. and thing SBR our cameras space CSP environment omnipolar in stress, in gaining applications. [indiscernible] also latch the in the

Turning to gained momentum and charges market power level. direct have USB in voltage batteries. to synchronized ultimate time Diodes offers secondary a of rectification and technologies. low MOSFET of to With Technology, rectification advanced wide response consumer space, range ultra a power XX reduce charges higher the the the quick solution to support propel to to adapted to synchronized SGT XXX charging delivery is the need The of

momentum convenience in XX are power including smaller use DC-DC, market, products, offers. to charging the wireless in are gained gaining diodes power Schottky consumer the of of Diode's MOSFET required, SPR, tractions increase package channels. protection Also, and wireless families in XX TVS, the transmitter also to Additionally, which because LDL,

seeing in home PCI helps XG XG safe the Express consumption. In the are to a into both speed products power emerging routers improve family in designed the package is key Diodes switch with market, station and large bandwidth also upgrades XG demand mobile performance the that life meet area solution the mobile our significant and changed Gen people's on requirements. have CPE amplifier this and profoundly communication communications for as routers. Diodes XG increasing base power

phone supporting our phones, XXXX. and in are quality system highest which superior Diodes switch picture also with delivers higher hit market further for applications performance next mainstream released cell generation resolution to expected for [indiscernible] capability XG camera [indiscernible] under the performance the

rectifiers resurgence bridge PC computing of as local in rectifiers, applications our and as growth in are market, GPP TVS products products. a well Lastly, the SASP revenue in

as adopt Type-C, the application protection. growth this mobile USB for emerging is As big and PC power continue markets engine to next

developing solutions current customer have C Type custom applications. solutions We connectors to all Type also are on teams protect for usage on and C specific

interface docking Diodes continues for Additionally, portfolio provide comprehensive solutions customer switching to and need. stations product for

crossbar and offers major mobile a designing Our bandwidth Gen performance released PCI also switches Express lock, newly connecting centre X to the for being OEMs. best low with while high at [indiscernible]

that served total further expansion in exceeds of our markets resulted annual results achievement and share success record that to our and summary, In growth a approach market has our sales at is gain our solution testament of contract key customers.

the positioned to to in further margin year driving We milestone forward financial are continue ongoing well growth long-term and towards our our goals. looking expansion and achievements reporting and coming success

now With open Operator? to that, floor questions. the we’ll

Operator

Gary our of you. comes question Securities. [Operator first Instructions] Mobley And Wells from the Thank line from Fargo

Your line is open. now

Gary Mobley

therefore, sales some be sharp overall could your the but outlook on see it of were Like and everybody about, days quarter wrong second started on can the margin not thanks reversal on taking as rates to the improvement higher – And second QX impact my if Good sufficiently some for your is utilization manufacturing fewer the correct employee first asking high much start question gross question. more I'm having among inventory as guide, first of me you to margin? afternoon gross work really the quarter, that wanted of too your start for impact this an so the days by we days but sounds quarter heading presumably your own into assuming in enough really side. if the about there, and and thus asking your as so fairly the I'm is, the in quarter, in

Keh-Shew Lu

Okay, Gary.

questions. those answer me Let

First, year, Year to correct. you quarter In going because we're fourth are we as last have a know Chinese the New XXX% slowdown usual.

then So, we goods we expected, due down our to prepare in than actually coronavirus additional And factory the inventory and view Chinese more Chinese in for finished opening the up – for to planned. New Year. China slowed

only You typically, weeks and the time shutdown actually we this get Chinese we two X shutdown. to New planned weeks know, over Year X of

therefore look we the manufacturing all really plus/minus our view we material. inventory [rush] from fortunate you X%. of changing range we put it to due still goes goods is [reflect] the know is a can It of our typically up we have the $XXX plus/minus you of guidance and revenue surprise channel wider to or X% million. reason The slowdown [XXX at was offer billion], floating still the it’s reflect and up if already finished to So, don’t

Most of outside chain China, happening. them from be will locally coming coming that and is know but some material don’t supply the what we of of

what we reaction the the the the until And of but they all even most actually Okay, uncertainty our because some customer are such XX [indiscernible], shutdown. old February restriction extend span, even cannot open still that a picture. you that cannot is – be gets whole our of we and offer will of customer customer factories some

If the going is to happen. that you not Wuhan factory have in still

our return And and opened talking of one, – at up margin and we from of know think week-to-week, since from we revenue. rate range of can for to because the that’s up that margin. so, – many ground all extended queue how how we about these gross therefore point up returned many and you have view from week-to-week. we gone were Then The or for guide shutdown, gross we kind what already people XX% work people least from will

huge plus/minus a that’s X%. – guide we Therefore,

or areas not fab king guidance, it those And that fabs I – China, have factory including the like surprised is we are participate the most province. and we Hubei my is in keep not tell assembly we this already from already by specially the function. key key much our is we [indiscernible]. Wuhan not in a basically Shanghai, speech, you do lot think that So, factory and wafer and of [indiscernible] is we mid-section and of to reason revenue or in have wafer And manufacturing wafers a fall still [indiscernible] in is but the

industry Korea. entry year Japan, and have making shipping Taiwan in [indiscernible] from a next We and

and in then Okay, shift the Japan. [indiscernible] Taiwan mix in entire and even

have feel – we surprised. allowed So, we

So, fab portion it our more very support. in China. of And is concentrate effect wafer a our is small

the putting don’t the is still even chain now a point in we supply customer seasonality thing still down know guidance consideration than slow the of of be we seasonality and view, than only already we Okay, would are balance and X.X% from better better and factory requirement.

talking if were quarter, we and you then really of to We [indiscernible] be Now, the XQ about it back is second demand. – have already end know after demand the enough capacity the should started our workers by should normal. already and

our main power today today, CAT XX%. only is – to up So is

Shanghai, – understand SAT to all with compare a they they be be are back control cannot is come in quick X%, who only be Now, need who yes X% employees we be our how where to would and at so are home] [cornered they bad, but will to work. bad, at nor to

end XX%. XX%, be should that Then by we be up think to we up March, So, of February, should XX%. this month by end we to of

be, can the you back think should I second customer quarter, run right. not. fully manufacturing. the will our if Then be to the truly In only up in or are question So, we

So, that know. one we is the don’t

Gary Mobley

your and I am all? quarter quarter some questions guidance if any Dr. OpEx XXXX you for is non-GAAP may you. that second maybe at of like, of of flat normally quantify don’t well me Okay. what noticed Brett, growth wrong, there see look what Thank if full-year but expanded fiscal couple sort merit I increase in sort a your OpEx growth first the is as correct sequentially you and quick the Lu. and for answer

Keh-Shew Lu

Then increase that the our is be then two making time Greece, will for okay, demand, Well, the In X [indiscernible] function period people. the rest okay. a different for so July increase. of and we in compensation regulatory compensation is the in conversation have [indiscernible] China [official] in

another is – XQ, So, can the can a Chinese should New you down TP your of more than caused for the our because in simply our is will The cause because simply is TP improve TP be burden then more down burdens. revenue – typically down rate the because slowdown. And not is factory TP gross will the margin extent see that slow year we is usual the the but in it what of Year [indiscernible] for and be actually and reason is the major rollout. revenue [building that this especially some,

full. be So, utilization will not

Gary Mobley

What about starting stay year? the mark You this with? on Okay. rate XX% you're the that for year know, tax

Brett Whitmire

Yes.

is XX% good assumption. think a I

Gary Mobley

you, hop queue. guys. will I the Thank in Alright.

Operator

Thank you.

from the line comes question of Longbow. from next Shawn Our Harrison

Your line open. is now

Shawn Harrison

Hi, good afternoon everybody.

Keh-Shew Lu

Hi, Shawn.

Shawn Harrison

way you that shutdown Is a think that is of or wouldn’t within June right to Hi. dollar my math is quarter. into drag that maybe million guidance about $X.X of of repeat the basis million of type extra the week costing that the itself $X it cost, on right the

Keh-Shew Lu

don’t do I important on mix, inventory we that out. mix, and know really really because [indiscernible] we on it it could it the ship depend if have to was the

Okay.

the have don’t I So, [indiscernible]. number

Okay. increase I be ship dollar know to number gain would I the don’t out we be. try HDC Shanghai, the center, be our And due ship call number, inventory the how remember Currently, I would but what warehouse million I to warehouse. in ASP to and we distribution TP units. out that, is from plan Shanghai do, which that XXX we do it would know not to the what much but the

Shawn Harrison

Okay.

that abnormal pretty the pricing I now You know is are anything seeing environment still? right benign in still

Keh-Shew Lu

we… do the actually not – is, I issue us, Supply the price, for not because top the the if want is to okay. demand

Emily Yang

Let the question. me answer

have did anything model. business really reduction at to price period our haven’t seen time buffer this pressure this through into moment. normal at price tax X.X% X% change or We We going

Keh-Shew Lu

typically [indiscernible] that see still see price a pressures. kind but X.X% we of can Our we dropped in biggest - is model huge X%, model, once to

Shawn Harrison

one final then And Okay. question.

think do a business again Let’s those the allow exclude digits kind or XXXX? you have share the that would virus of see maybe wins whatever fantastic and businesses robust industrial year, gains double the you in but or grew unknown second, type product last auto of that growth to the a in you for

Keh-Shew Lu

unit Okay. key Because down, during My or components our due unit to key it’s will the up whoever not down and If customer level whole anyway. that some supply be answer slowed down is anyway. to whole demand some component due not the definitely really yes. be factored can or they the now the – and getting to unit were will the down because

we in our all because the portfolio solution because will and one and growth our this are product sales So, the be position I think just don’t changed.

So, we see not. market will don’t the share. end continue reason I a to why

Emily Yang

Correct.

good really results have now. commitment we the and from for right demand good So, Really pipeline all this past. creation

especially will product. are we continue that in generation like telecom telematics for of pretty example confident areas, the So, automotive adapted to grow side next the we

momentum that continue. really we’re confident will the So,

Shawn Harrison

Thank you.

Operator

Instructions] the line Thank Sidoti. our from Tianyan you. comes Goellner And of [Operator from question next

is line now Your open.

Tianyan Goellner

Hi, thank you for taking my questions.

split. and of because half just So, half second revenue the the kind in to pretty I so sense evenly wanted the revenue XXXX, first get usually in about the are some

probably So, for second this see some year, correct? Is that will half loaded.

Keh-Shew Lu

be will to start going don’t are happens in. quarter, that by be second boom to end case so and to sure the have quarter, struggle uncertainty will That or for will be but know. believe if in be not, year I for any information, much be to or they impact don’t quarter but Well, XQ still slow going the will I down recover is second than due of quarter, third because be I it the fourth this coronavirus, complete

of think I half will more second first definitely be XXXX. half than So,

Tianyan Goellner

Okay. very helpful. That's

the computing. Next color maybe markets, end one, for some and example, consumable communications on

so we about the in I industrial So, in looking still we're but into three will know should those remaining how automotive XXXX, and think when markets? – XXXX, strong,

Emily Yang

Emily. address is me this. This let So,

switch I routers believe communication, will the of XG side and to boost have this got for that the – start On XG. I that area. you ramping top – know, also the is some especially going related be will did of that to area there on mention up the and we we that the think mobile [indiscernible],

well So, be a computing we think spot this is to us, but as for right the going right.

about think data opportunity the If router and the us, upside believe drive and some we momentums you really computing the storage, server right. the so we to and and about and [C], high-end array, continue talk of we about especially for talk

area. think I demand this drive to to is consumer side, some that new XG actually for even IOT’s right, related the of – going in

are we pretty confident. So,

been those We in top both the high-end you we area show automotive continue right. have focus IoT within about, server to the that know already, we on XG’s the know performance that we and talking significant areas on on the side industrial storage, right. think of areas communication, computing consumer you of

So, that is being XXXX. – going in focus we will change continue not to to and that

Tianyan Goellner

low end XXXX, in digit. But like I or digits in single down three expect would Okay. Should think all XXXX? were those markets single we the trend be similar very

Emily Yang

you in digits? single growth digit, single mean say you the When

Tianyan Goellner

Correct. Yes.

Emily Yang

Right.

market our X.X% in with the right. overall participant overall area Brett’s If is see you drop market their comment, can

growth all So, diodes peers even our right? digit other the in outperforms that with industry, single from to still the compared

Tianyan Goellner

Right.

Keh-Shew Lu

almost minus you X.X% X.X% then if plus is looked at XX%. Well, it actually

Emily Yang

in Intel on all area stuff also of Intel’s we short example will the and Right. And then are chipset the based computing believe improve that, in case you like XXXX for the aware know, announcement. we situation

is that’s driven So, tracking that the also market that driven as other another area and are you know by the well. by market the vendors also

Tianyan Goellner

good. Okay, that's very

would I be may, Brett, So, on question, my the for if last CapEx.

that X% that good assumption. You the prepared just would in mentioned X% to be remarks, revenue of the

at intensity at to end Should X.X%. of the fourth wondering, I'm the that assume X% and the considering quarter we was X% capital midpoint? third quarter the higher So, like in or just

Keh-Shew Lu

would the X% to CapEx is above I our allow, answer not X%. this okay, our me model let model Well, because because

allow the not case, will a I will all So, then one we if and view [indiscernible] and on comment another facility [indiscernible] we big it, but the [indiscernible] it.

space [indiscernible] years. – in we a for five years. depreciate depreciate buildings, then do – boost fortunately out one we XX but in our the up to that they build the are will be So, They capacity of of need CapEx little more,

depreciation. it’s So, a big not

Okay.

model. to So, keep to always still it try X% X% at

Tianyan Goellner

you. Thank Okay.

me. from all that’s So,

Operator

this Thank I Dr. the further you. showing over would time, At closing like call for to no back questions. turn Lu I remarks. am

Keh-Shew Lu

participation your on you today’s now call. may for you Thank Operator, disconnect.

Operator

Ladies may now concludes and today��s you call. Thank for disconnect. participating, gentlemen, this conference you

Diodes (DIOD) 11 Feb 202019 Q4 Earnings call transcript