DIOD - Earnings call transcript Q3 2020

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Operator

Good afternoon, and welcome to Diodes Incorporated Third Quarter 2020 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, Monday, November 9, 2020. I will now like to turn the call over to Leanne Sievers of Shelton Group, Investor Relations. ahead. go please Leanne,

Leanne Sievers

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

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

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

for results As revision and XXXX. the its are to XX-Q subject third unaudited such, quarter company these until Form files its

the Securities which company Litigation prepared to and for including Safe protection Private today, may additional filings forward-looking XX-K from Harbor risks management's remarks subject in the uncertainties, management your statements, to claims that forward-looking the response statements forward-looking contain questions. results may differ of are and addition, of Therefore, a the statements uncertainties make Actual the Commission, and is detailed XXXX. discussed the and in Act and you with discussion we contained those more risks and refer the therefore, Exchange In Reform of to XX-Q. company's Forms Securities in

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

stockholders are in statements discussions and as financial income press certain of measures conference call, of will release GAAP common terms. the definitions the call information press the non-GAAP Also, income. this attributable to and we GAAP refer net which during release reconciliations Additionally, during non-GAAP and provide items, conference in details. press release statements to management Included management company's company's additional and throughout company's to and net GAAP include this

listen at Diodes' entire days over now, via ahead. call of those and at Investor time, the of CEO, I'll Lu, section www.diodes.com. webcast President you recording Dr. unable to turn be go For And to Diodes' a please to available Relations for website XX in will the Keh-Shew the this Dr. Chairman, Lu. call

Keh-Shew Lu

Thank you thank you, for us everyone. Leanne. And today. joining Welcome,

Third by America, reached at of Total increased sale computing and the and sequentially POS North quarter end than record by consumer revenue driven in better automotive, North America. revenue strong in revenue Asia, record worldwide driven XX% markets. and contributing driven XX% was in and increased point expected followed quarter, sequentially, both in Asia X.X% Europe to recovery and revenue growth a by XX% record in by

grew automotive customers Our content Diodes record reflecting expanding and sequentially revenue, existing XX% further total semiconductor to and over application sales the continued per in across in new X% of opportunities Diodes vehicle. year-over-year market increasing while XX% success

computing and strong quarter automotive this to market, a in of year. consumer in and also resurgence continued increased markets, the momentum with has IC Pericom XX% both gain products we our Additionally, first the approximately we from the saw which

XXXX of our in approximately XX%, at In our increasing both quarter our has the from leverage total solid income operating the net resiliency model. as first XX% pandemic well revenue business fact, the onset as increased of with the demonstrating of the

expectations to company's Brett target me detail. XXXX based acquisition proposed of let revenue which in results now of to our the extend guidance to exclude continue call November. and more quarter quarter our the discuss We mid-point across of close expected see to any at geographies, quarterly guidance our markets we is at These history. our end represented our fourth the to improvements expect With end over as momentum the third further growth quarter in that, fourth Lite-On broad from contribution and that turn financial Semiconductor our the highest

Brett Whitmire

and afternoon, everyone. Lu, Thanks, good Dr.

for As related acquisition-related acquisition non-GAAP intangible of million or million non-GAAP million, $X.X of amounted expense Total prior the and million other will the comparisons. compares line on more comments I you were and $XXX.X million focus my expense million my excluded release million, $XX.X each a of of Income for of basis our XXXX $XX.X $XX.X second revenue, quarter will This XX.X% and the change before of million points revenue. approximately currency X.X% well third XXXX $XXX,XXX quarter and sequential of million, third $XX.X to or for and million of or which increase in were expenses of $X.X financial for in third basis X.X% XXXX operating to $XXX.X review $XX.X $XXX.X for as non-controlling as second XXXX or on items, increase to including revenue. of the foreign an previous million our $X XX.X% compared of in loss was as of compared XX offset million quarter And compared expense, costs. part profit was press to for $XXX.X $X.X the was of to or quarter today, the quarter the XXXX. review operating interest revenue. or detailed quarter million the expenses $X.X revenue, of third quarter. of refer of interest a million the $X.X other XX.X% the the amortization year-over-year quarter taxes GAAP XX.X% results interest by partially Revenue in in Gross an in quarter, million income of XX.X% to income. the

for income quarter $XX.X $XX.X million, or compared million of net the third and share financing of adjusted $X.XX share. related diluted in per or or The to XXXX. acquisition-related the Turning quarter acquisition diluted diluted was diluted million, XXXX approximately in $XX.X net intangible compared income third million share, income or net $X.X XX.X% to income third our third quarter quarter. GAAP We XX.X taxes; share $XX.X XX.X%. adjusted of $X.XX the excluded tax rate previous the and of diluted in the was Non-GAAP the compares XX.X% $XX.X the for of revenue, was non-cash costs. other second count million million, $X.X million, was $XX quarter. income effective shares. to revenue third quarter prior to GAAP share quarter per used compute net per $X.XX non-GAAP GAAP million expense quarter the XXXX per million income for for was or of EBITDA in or EPS This to $X.XX

third additional a the debt down flow to down million in positive GAAP release $XX.X third of quarter including million $XXX of which and included to $XX.X flow Net non-GAAP details. expenditures. net have adjusted XXXX. Cash million, from million for a million. debt Free which operations cash third quarter We an included earnings cash our was long-term by income capital of generated and quarter, net reconciliation income net for pay $XX.X GAAP provides $XX.X draw was additional EBITDA, flow was of in $XX.X the the income million the

end cash took our the credit cash in current quarter, totaled since of debt million. on as increased short-term we of be we actions for the dollars. At we transaction capital Similar equivalents sheet. natural $XXX was the debt Both our at continue in million. Working which the advantage million the Taiwan of environment and result $XXX took investments is as rate as down dollar, interest portion will $XXX cash the approximately line including to hedge pending of end and funded plus balance expected Lite-On to to November. was the to and third acquisition new new of Semiconductor, balances US Taiwan Turning dollars quarter quarter, last and long-term prepare to purchase a the low the close a against our drew

of As balances the equivalent debt cash $XXX resulting end in had and third the our the and accordingly. million, increasing quarter, of converted borrowed we of

million approximately to $X.X quarter remains at compared Total dollars target in in in a $XXX.X a increase expenditures increased Capital the goods. which X% terms basis the goods work-in to in a reflects In finished to materials of low inventory XXX second model of in total or of compared decrease increased raw which XX third days Finished our million last million end million $X.X on quarter, approximately XXXX. were for and to days the XXX of inventory XX inventory $XXX,XXX million, of quarter, inventory $XX.X process increase slightly at the quarter. $X.X revenue, XXXX third the and the were cash X%. to a quarter end X.X%

X.X% expect third significantly to growth sequentially record $XXX revenue fourth or which our acquisition, past and on to close growth to minus of the record turning year-over-year, Lite-On is Now, the is increase outlook. the expectations POS plus seasonal we results contribution Semiconductor five expected of at momentum of which exclude revenue quarter of the and X%. down our represents X.X% midpoint results, to any These years end over November. at a above in million, which approximately X% Building from typical quarter

plus expected gross be or XX% amortization revenue, operating of X%. plus GAAP GAAP to to are intangible approximately non-GAAP assets, minus adjusted XX% be expect expenses, expenses are or which margin acquisition-related X%, for We of operating minus

is rate to to expense not turn are costs. EPS accounting be $X.X over previous expect Lite-on non-GAAP XX%, the not expected acquisition-related XX now estimates. minus purchasing approximately and of quarter fourth tax that Emily the plus I $X.X We to said, million, With and Pericom that for X% acquisitions included be to interest Please $X.X is included be approximately after financing shares million. income adjustments tax call of note, non-GAAP will million or to in million is for our Also calculate diluted Yang. used these net anticipated

Emily Yang

due XX% Channel POS range to weeks in which and is Brett, defined end inventory North of our you, XXXX, quarter-over-quarter America. XX the particular the and revenue of decreasing the was high revenue weeks. to X.X% record weeks third inventory recovery led in terms of in in America. by at up end XX% Thank followed of increased worldwide demand POS quarter, guidance the and Of than sequentially, XX note, both and increased by North Asia, with In our lowest Europe expected within sequentially, since at been good better XX% afternoon. Asia distributor

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

the Looking quarter. sales in global third at the

Europe revenue, of and XX% X%. represented North Asia America XX%,

achieved our of consumer XX% of end builds; revenue. and in XX% XX% revenue, XX%, communication terms and automotive revenue In markets. market, pre-Christmas We end mainly consumer industrial of driven automotive, by represented record XX%, consumer computing computing,

prior America the end the in over review sales sequentially. mentioned, North in Diodes greater year achieved strong the increasing and sales record customers Beginning and and demand vehicle. Europe. total semiconductor Asia, as detail. me and existing the growth XX% and market, period by by in increasing let revenue penetrating growth automotive followed new Now, markets Diodes efforts Driven reflects automotive success by steadily with per achieved in X.X% This to applications, content addition approach creation solution

are as transistors, applications and TVS. able SBR, our emergent for and design controllers, also automotive new system, like lighting including battery XX-volt secure automotive switching management and electric several We mini as Zener High growth. wins and lighting hybrid our well demand battery business power products, drove to diodes, including micro Powertrain, also applications [indiscernible], power, grow vehicle diodes,

low chargers, interface in increasing charges, opportunities designed gained been ADAS wireless channel in controllers, motor new package Gate DC ICs USB new reverse automotive the we has end compliance protection new including during single and to to and applications user design-ins quarter, product system. with infotainment data attention applications. Newly family TVS wireless small XX-volt and successfully various released compressing market products protected applications. market battery, share into LDO and driver quad continue charging, and infotainment has line X.X-volt gain for Also and brushed system, switching and

automotive We halogen transistors, LED to LED-based signings are and for replace seeing strong momentum retrofit the our drivers junction lamps in lamps. bipolar on

One throughout vehicle from modules. exterior In with headlight market, design the and X% We like America carbon year to as the North quarter in revenue and Europe, market in industrial the begin yes, innovative compared for factories to solutions ago. is lighting, still in in seeing the their focus customer providing both sequentially support below light customers are applications both industrial of reducing also reopen tail full to output but in and increased over a Diodes to production wins ranging interior area remain footprint.

crystals, and to Additionally, diode used a switching testing MOSFET medical first continue fight COVID-XX. equipment our and adopted equipment Similarly, in ventilators, number protective to diodes, ranging responders from our the products especially applications be those oscillators of crystal by healthcare been in to providers. personal have

also power, energy are switching automation, and many and security controls, additional industrial Our efficiency in smart system. smart diodes including HVAC being high applications, control factory used elevators metering,

addition, growth and strong product power In new seen we LDO industrial, as wins in for continue design see lighting, family, we've e-meter tool our application. to LED

We also as wins LED factory new drivers lighting. our several the for in secured LED and design such applications linear automation,

strong for record market, a as achieved applications We revenue in recovery both as [indiscernible] Asia. system. gate activities quarter a in for LED level result and also equipment, high using saw power such design consumer the driver earphones, we products strong devices. SBR in and and drivers performance In and saw the of Our embedded high systems handheld demand our systems, expense of industrial control in telecom medical

products, We as new charging, also well small LDOs, and power phone XX-volt BJTs driven for chargers, applications. for mainly AC-DC design saw box set-top as rectifiers, in by TV, our adapters and tremendous appliances and wins growth

achieved also products revenue We speaker amplifiers and our significant in portable growth consumer for applications. gaming heavy

continue by the in including white was dishwashers, cleaners segment diodes high consumer also growth washing TVS the vacuum driven to machines, and goods, efficiency see demand dryers, We stoves. for and switching strong our where

to the Turning products. see continue expanding we limited increasingly XG and frequency coverage cell be continue a common network. small has and the key infrastructure, our distance, of capacity become focus market. for to Due opportunities improve high to XGs to to and area communication

oscillator crystal modules CPG In packet certain Express Switches performance our the and precision in finding many low-jitter are XG boxes. clock for needed PCI high buffers needs. in are timing Our acceptance space, wide

saw NMOS unit KV XG boost We for also X and saw smartphone router also consumption. in XG wins power base radio and remote LDOs design and to large strong momentum design-ins for and TVS save PMOS in stations applications. for increasing in power

as in in Lastly year-over-year family. in XX% to revenue market, applications, shelter levels particular storage the and momentum our also over drive surfers motherboard, to record continue product notebooks, place increased for computing X% in Pericom sequentially and work-from-home and

also levels remained quarter Gen with interface in solutions USB for for dominate the integrated X.X by to This product and X XX to family previous Gen up the our GenX us clock integrity and output of released solutions Express space major and us Express signal for our revenue Gen comprehensive for redrivers, platforms month GenX at applications. PC and most X.X, deployment. and tractions [ph] with clock buffers, the quarter data offer Express second C active Type We're and USB well PCI continued building cost acquisition. PCI control now released cost buffers and on we clock in generators PCI the quarterly products, PCI position This server product in for redriver the USB motherboard applications. solutions next Gen for two and Pericom fully since center our our server Gen frequency highest Express for X X enabling seeing continue This Momentum applications. X

for be continue share switching using PC to e-learning applications desktop also products remote and increase primarily COVID-XX. work-from-home, driven to business TVS We strong, mobile demands and by continue education diodes notebook, as and due to market

many Our seeing switch more with crossbar product switches USB high and product. USB adoption achieved our power C revenue using Type wins, popular line are we design quarterly record

and Type strong In very growth product and and with and despite we're current for momentum of like seen continued and growth delivery results SKY also power We in C pleased the another have SBR, applications charging summary, USB MOSFET, quarter ATX power environment. adopters.

potentially to to We our future progress we'll Acquisition are reporting market, the to quarter. set record in enhance look Lite-On Operator? revenue that, quarter in POS stage forward questions. worldwide next open results at our Semiconductor November now the continued and the new Diodes consumer a typically record and closing our opportunities. the down quarterly of for with what record setting is computing end combined With automotive, is to floor Our further

Operator

Our the question from Wells of comes line Gary [Operator first Fargo Securities. of Instructions] Mobley

Your question please.

Gary Mobley

you, Hope want to Emily. all for is from clarification start Hey, everyone. asking out well. I

versus just of reconcile up sale trying mentioned difference? that point that But up distributor I was you being inventory mentioned to channel only up You that was think XX% I'm revenue X%. sequentially.

Emily Yang

good increased is Gary, America Asia, Right. Definitely and and globally increased XX% and actually increased North POS morning. XX%. XX%, Europe

as our actually of channel to decreased inventory Our the ever, lowest end since XXXX.

So it's that end a really normal at lower define the we as range.

Gary Mobley

XX% gross Okay, margin outlook and roughly All miss that. heard your fourth the level. on to record that's it a quarterly quarter, as and revenue relates for right,

past And XX% margin XX% been a at level. at gross so you've in revenue lower the or

utilization? is Is there? mix what it a industrial? Is of difference I'm at lower wondering So lower

Emily Yang

Gary, let question, this right. address me

really of to little bit region shift, So view at range. QX would compared changed I say point you look QX, regional from if the XXXX a

lot usually a this is contributing because pretty and also region also -- more industry lower the more and also percentage. Asia bit little And usually industrial allocated Europe North have this definitely much know margin have gross automotive automotive to directly impact America. you

North as to will more, improve, help So continue COVID-XX we that and that believe Europe us. America recover

Gary Mobley

you. the Thank hop queue. in I'll Thanks helpful. That's everyone.

Operator

you. Thank

next Capital. Our of the Loop Harrison question from of comes Shawn line

please Your question

Shawn Harrison

world has I'm everybody. first, Hi, first good and deal let's from with next, Asia evening in distributors, distribution. just then morning you're wondering getting say your demand. inventory and in question level doing, they And good signs lowest like are to any at that My given years. if maybe you're if times the I the that? add don't to you inventory additional channel seeing two what discuss in know lead strong could is western

So the the at occur like time for to in it future. potential point some there restocking is near seems in

Emily Yang

you. to talk to Nice Shawn. Hi

really the you inventory at if on more lower is end. our look definitely So, channel

to closely situation trends. guidance, as definitely the see inventory channel based QX can and our trend, well our look booking we backlog the as actually to you As on POS

So QX, we the now. actually right you're that's you reason know, what guided seeing

closely there. So other the definitely would from things take look And you strategy to combined.

Shawn Harrison

think to least will fourth quarter work or it continue will try they your steady? And you distributors down hold at do to in the inventory

Emily Yang

definitely weeks. is not to range Our the is weeks XX keeping at is And if normal channel beneficial within to Diodes. it strategy low inventory XX too the

not more to lower definitely inventory. the of we distribution So planning

maintain to as we try weeks to XX we range XX again define So that the a range. normal weeks within

Shawn Harrison

$XXX Brett, you then million a if think you far. is right, follow-up. as And borrowed so my Great. I math said

I borrow over another, there to kind transfer the the and have should that $XXX expense or is base to what of for deal So, close $XXX off still don't you know million, interest million go that's of? forward we

Brett Whitmire

Shawn right, yes, that's right. Yes, it you got exactly

Shawn Harrison

$XXX sorry. million or $XXX million,

Brett Whitmire

million is what expect $XXX quarter. in fourth we to borrow It's

Shawn Harrison

you. thank Okay,

Operator

Thank you.

Our Matt Cowen. comes next Ramsay of question from

Your line is open.

Matt Ramsay

and it? revenue fourth consensus Thank I little very little where we've morning Dr. you. had POS in acceleration Thank through walk where the of evening you bit segment, call maybe everybody. much. your seen a us modeled you the automotive for guidance. more Good bit that a by know through the industry by don't walk little It's strength us Obviously about as Emily, that you could pretty versus could recovered? particularly materially talking market out, or division quarter and a is but maybe up bit you strong has a good Lu market end detail

Emily Yang

continue see our Yes, me We momentum Sure. quarter. that let very and Hi, automotive fourth in we definitely definitely with into will Asia see start Matt. momentum segment. strong

we momentum closure expand recovering seeing we the expect lot the improvement. factory I that dollar and to of be start to time, content on our continue I that America also continues. a of into we've expansion go our content. will with North then and At working the And seeing started and Europe do momentum industrial, in start America a We good Europe, will overall that same and think North strategy been regions,

explained all Europe, also market. pretty for especially with like to America regional a industrial the I We with we smartphone seeing close communication quarter. a our shifted the also the before smartphone The about production from getting aimed at North And And improvements upbeat also cycle started and are actually XG for XXX%. then smartphone output. fourth is we bit. I little communication, from It's and data, mean -- this

So strong infrastructure. with continued we seeing actually into XG momentum this together

quarter to the design and third in momentum in second for designing strong continue see result a this IoT And lot in are area, and the we quarter shelter carry some usually also gaming we right, of drive computing, of to consumer of We consoles good for strong continue the to related to health, the place, momentum and about but momentum a I still shelter of fourth also place, and this applications area. the not some this is and the the I win last would a think in talked And quarter, also a a I already, seeing the do we've through. noticed continue is fitness area. that quarter then growth expect quarter say really in lot good seeing will we anything related,

almost the all some also across showing board grow every are we across market single and momentum regions. So to seeing the end segments

Matt Ramsay

can if Thank what wouldn't you. guess for I if question first next and really any we if as would the should things there's about maybe go of business going is, and the a -- aren't detail for there. anything given year to different obviously, quarters in that to next we little particular could might this there and maybe next from year in the you and second Thank talk in of yet look the year? seasonality your like COVID helpful. that us still recovery follow-on is first the remind you bit be half that we're maybe for half into flag but we normal you, first guys guide that the That's seasonality you

Keh-Shew Lu

right is predict very now difficult think seasonality. to it I

go X% seasonality. that is probably down. normal will back still before then X% going XQ like let's down, go to XQ assume go XQ, X% XQ seasonality following will then XX%. say just We this up We X% ahead ahead which going assume to

of average may X%, XQ X%, X%. very going down up fact in X%, instead this be actually we are it year Now going strange,

this you the difficult other settled more issues. So if And it Europe now. and Asia, US, thing is the down settled virus at the is not to to yet is go but look due at virus and very virus the really is

But we at the a are competitors. just thinking so business Asia. the therefore Okay, we of in Diode will automotive, our our since is still same. Asia, of this the thinking majority Therefore, in benefit than lot our more synergy will moment the we be industrial, have even business and

Matt Ramsay

Dr. Lu you, Thank for that.

Just one quarter. more and quick reported that their the have June one think from X% me sequentially the and for then maybe September I it's at I'll queue. Lite-On revenue folks X% the jump I versus back noticed in the quarter year-over-year, up

on out the to conditions. call of plan in business different the of Lu, month acquiring the you anything their For unusual the end by Dr. pieces that business or

Just for you. everyone, it. if out, there calling there Thank -- appreciate time I I worth that volatile just know was so it's -- a we'd unusual was anything

Keh-Shew Lu

really see -- acquire and we certain have much we see now of didn't then, assumption LSC, we when when think that it we I different.

the for we a in Okay, more is downturn. took one

get I synergy, to synergy longer it. to or from think it market first much for manufacturing much we time a the mature long synergies. synergy, instance point view, view have like that from And long-term able take be the of synergy, customer and to three synergy time, product

get could get in synergy. to three Okay, are because years, we take all automotive, those can it before activity two that years two design one you years year talking you and especially, to about

start XX% the -- is can able think to by that their our loaded if manufacturing year by short-term quarter product diodes XX%, and [ph] up currently one, ramping are get probably about next to under synergy second their we to we year. qualify one manufacturing way will loaded XX% and that be you'd of and is manufacturer loaded, be next probably end the manufacture we to So quickly Diode to try synergies, from the

GP about a much product we we quicker issue this to is think synergy you one the loading can XX%, due shipping in, XX%. Okay, where know so bring is the but know

pulled still breakeven GP So of our and end is will the still from GP accretive and $X.XX, is next is the at should the bring year interest total as Those thing hope as thing is not be be XXXX. manufacturing [indiscernible] next or immediately. under probably end able will bulk year. it loaded. really we be good back with But GP But down even of total can the our that try Diodes in up we key total year This it see, to to one share manufacturing the will it we and there and but EPS the about improve improvement two breakeven the purchase the payment. the we or at is --

Matt Ramsay

Lu. the appreciate help. you, Dr. Thank Really

Keh-Shew Lu

You're welcome.

Operator

Baird. question the of Thank of you. line comes [Operator Gerra Instructions] Our next Tristan from

Your line is open.

Tristan Gerra

trends that see, some you on more acquiring capacity, rates the question you we overall. manufacturing Quick looking your low inventories, price do What expect QX? And are given increases? buckets your utilization to of be at in

Emily Yang

repeat Can you time? one more question the

Tristan Gerra

Yes.

is, looking back-to-up which all we're acquiring this products so more MOSFET, increases demand, ahead rates also do price strong very question like pockets lean given those point trends? to the be seeing and are at given you some utilization of you to what the for quarter? coming So And inventories capacity expect your distributor potentially also

Emily Yang

-- ahead Brett, So Lu. do like you go Dr.

Keh-Shew Lu

Well, is And margin the gross growth, going really is year. the to for is see entire growth next on always low. very is, I focus reason We're okay.

we from growth them Okay, of both growth the therefore for and coming improved. revenue see that that entire will will we will Because the We be are on thinking so think but grow And be the we see product focus much, don't the next if due diodes and of year, product. LSC will will okay. utilization for diodes to improved. diodes be manufacturing design-ins most product, LSC we

the capable LSC outside diodes LSC wafer produced diodes [indiscernible]. to product we're product, will will operations still by be used For produced on that therefore, direction. want from manufacturing, the and is some their bringing what focus a the utilization by to that operation be improvement of loading coming to LSC portion -- and is some the product majority We qualified do form we be going in capable manufacturers. doubt And will LSC improve into those have

Emily Yang

of yes, let comment. -- on Tristan, top me there So little Lu's bit Dr. me add let a

So capacity, support be LSC to really capacity remember we the well. capacity actually this [ph] year. you plan acquired combined SFAB believe additional GFAB in with And in-house place, XXXX what just also Lu growth fabrication have all should to Scotland. mentioned and And good in assembly also ramping that both know, we in we addition as Dr. target we of our

our internal that's strategy our capacity, pretty for longer-term. much So

So well past few really with we position have done for acquisitions our our growth. really and well

Tristan Gerra

then Okay, great. follow-up. And quick

You we Pericom the the I what's XX ramping is has at incremental would months, content of so very automotive, are implications? And point? and past, Pericom wanting share a over the market successfully had ramp? say inning that server in Because at mentioned early automotive in this

Emily Yang

before applications in lot like Yes, product next I very infotainment mentioned are a the really that. of I a family system new Pericom and generation adoption of at this to more all related stuff of early I and is stage ADAS, think like to application, before talked

the to whole yes, answer So, beginning this your question at of is, cycle.

Tristan Gerra

you. thank Great,

Operator

closing turn to Thank for management you. I'd remarks. over call At like any to time, Diodes' the this

Keh-Shew Lu

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

Operator

you, the gentlemen. This concludes ladies conference call. Thank and

at lines disconnect may your You this time.

Diodes (DIOD) 10 Nov 202020 Q3 Earnings call transcript