DIOD - Earnings call transcript Q4 2020

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Operator

Good afternoon, and welcome to Diodes Incorporated Fourth Quarter and Fiscal 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, Tuesday, February 16, 2021. I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. ahead. go please Leanne,

Leanne Sievers

welcome Conference Fourth President Call. Investor Group, and XXXX of and Financial Diodes' Firm. Results I'm Relations to afternoon, Quarter Diodes Fiscal Shelton Good Leanne Sievers,

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

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

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

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

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

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

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

Dr. Keh-Shew Lu

and our Semiconductor Welcome, even company's the Thank And achieving in Total thank us that for We revenue the high-risk you, grew everyone. you -- on joining history, today. ended November revenue closed Lite-On the acquisition quarterly of sequentially the contribution of from sequentially content, XX. excluding gains year-over-year, in Leanne. revenue and demonstrating the continued year X.X% organic year-over-year, of XX% initiatives. Pericom with and Revenue and automotive automotive our levels, market which customer revenue quarter. from success growing market our to contributed also product, our record reached XX.X% expansion both solid products XX% share

All of considering pandemic. achievements, the global notable especially accomplishments ongoing those are

structure The Following the advancing December integration President, for Senior we also has Gary the group Yu, in the process X, tested announced been successful business LSC operation and been with On companies all smoothly. of of named initially acquisition. all new is completion the charge have combined and integration who has Vice activities.

start combined the efforts product area. serving that synergies, portfolio. those the In spend been them of with are expect in product, with multiyear by end and Diode with to this and XXXX have year with begin working closely momentum process and development customer in expectation mid LSC qualified to We working our product factory this market actively the in regard exit customer of product to significant the production making our

non-GAAP results, fourth basis adding today, our our on a immediately accretive release in per to in the business quarter. earlier the was mentioned LSC share As $X.XX

As we growth manufacturing product LSC expansion customer across future end market, also footprint. and offers synergistic offering, I just for mentioned, and our the believe opportunities

will growth combined owned Diodes to earning synergies, which previously addition powers additional share of the In average. drive with repurchasing that solid XX.X% operating of when LSC by Diodes was

expect in consolidated look growth extend to for is first record, on by reporting for quarter the we this capitalizing business. LSC We new a record the growth seasonally This again down been sequential what growth revenue quarter ongoing organically integrating me over and being Brett anticipated growth quarter long-term with to remaining on As earnings and more the driven look With XXXX in has to forward that, discuss and to POS quarter. in call and financial now our both once fourth quarter, momentum first let revenue to on we opportunities further set and guidance a previously strong profit our continued the our focused while turn business, projected a fourth our results progress basis expansion. and detail. the

Brett Whitmire

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

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

taxes. Turning to income

Our compute due share million was $XX.X was the Diodes LSC the to per income million million to in effective fourth of approximately since net for third income GAAP quarter the the quarter per $XX.X or $X.XX XXXX for count share, which repurchase from X.X compared XX.X%. fourth income diluted which XX.X $X.XX used rate tax shares, net a GAAP for per one fourth million quarter diluted share from share or XXXX to approximately $X.XX the the of The reflects and share in quarter shares was GAAP weighted of for diluted count XXXX. LSC the month reduction EPS average closing. included

certain per of a fourth share gain income $X.X which for the count $X.XX today, approximately press Non-GAAP in our non-GAAP expense, quarter $X.X LSC expense. expect release $XX.X in shares. of of $X and for million third or fourth per adjusted contributed and the GAAP per diluted million compensation million $XX.X million of tax, XX.X non-cash acquisition-related in intangibles net XXXX approximately share net $X.XX the of net excluded financing was million, quarter $X to of income and we share. was net mentioned diluted income restructuring tax of acquisition-related first XXXX, net acquisition-related LSC or investments. noncash adjusted other the quarter quarter share, Included in costs, million to be $X.XX adjusted costs earnings. As quarter Non-GAAP was share-based $X.X fourth income the million non-GAAP value net million

Excluding per diluted compared quarter. earnings $X.XX increased expense, per XXXX. for in GAAP million share EBITDA both quarter $XX.X or of to revenue would EPS of share-based share quarter prior revenue and by XX.X% compensation have and $X.XX fourth or for XXXX was non-GAAP third fourth adjusted quarter the $XX.X million XX.X% the the for

$XX.X was adjusted quarter, fourth Cash XXXX. for quarter the provides for expenditures. income $XX.X our for have which which the fourth reconciliation $XX.X Semiconductor includes was We negative approximately income Free Lite-On to $XXX.X of flow Net million cash income, GAAP to of a million, which the net flow purchase release non-GAAP net details. included million. a during $XXX.X was fourth the for million quarter additional in cash from included the and GAAP generated operations net in EBITDA, quarter earnings million flow capital

Turning $XXX $XXX end of capital to restricted the totaled quarter, million. short fourth cash balance sheet. term, Working long-term $XXX At and cash, the was million short-term including total was approximately debt, and investments million. plus cash equivalents,

compared approximately the in LSC. and from target Total materials. on within the $XX.X In increased or fourth to XXX in a inventory the XXX quarter in consolidated for XX increase to days of million fourth a addition goods quarter in X%. cash quarter decreased million were at only inventory a XX dollars million third quarter, the which and $XX.X quarter quarter. $XX.X the decreased $XX.X $XX.X as to Total of reflects to total inventory remains goods to X.X% X% in XXX revenue, work-in our increase which terms million, Finished million days last XXXX consisted a expenditures increase in of inventory, the Capital end basis inventory a process, approximately of Diodes days of model raw of for $XXX.X finished basis on million also XXXX.

and of quarter expect growth the our and approximately XX% midpoint. results, than XXXX down record of of Now Building million, the average typical organic to or $XXX the at a This in we for to on seasonality combined our basis increase record periods. outlook. turning increase two-year plus both consolidated represents in sequentially the on on organic better fourth first sequentially an revenue X%, a guidance momentum prior same POS X% represents significantly the to which growth in minus quarter

minus or approximately expect GAAP of consolidated operating acquisition-related We which due gross expenses, approximately revenue and Non-GAAP LSC. an GAAP minus or expenses, to are to operating of basis on be which impact tangible includes amortization quarter XX% to expected of X% assets a X%. plus for plus full X%, margin a adjusted be XX.X% are

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

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

Emily Yang

Thank North and you, basis consolidated revenue which America the afternoon. Asia, quarter, the Europe. in a at XX.X% good fourth In demand to followed and increased guidance, better-than-expected end by primarily is X.X% of Brett, due our organically and high quarter-over-quarter on

Distributor fourth range closely weeks quarter. expectations to of inventory for which slightly Looking of the is quarter normal weeks. below defined XX level at revenue continued quarter-over-quarter, growth in the our driving which XX our decreased record terms in revenue, the is first POS reached more

inventories distributor expect to We range our near the normal in return to term.

sales quarter. the the fourth global in at Looking

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

computing our revenue; in being by consumer, record XX%, markets, revenue automotive computing quarterly for of computing XX% markets, We product. Pericom end of of and record represents XX%; industrial, our terms communication In revenue. end revenue XX% achieved and with automotive driven XX%;

year-over-year. There to systems. continues XX% revenue. Now as safety, automotive, review telematics infotainment details. driving, More the charging. its ADAS, growth connected XX% gain conventional, new represents product in applications systems, as motor automotive-grade as wireless DC total to our consists we almost well including in which application me a switching, record and electric driver reaching including strong where demand ICs Diodes drivers application. and bipolar MOSFET styling, continue crystal brushless as of in of This alarm daylight and speedometer, connected control driving, areas significant In and safety, lighting as are we for three quarterly oscillators growth XX% comfort, the lighting infotainment, with hybrid light, style lighting such and Diodes traction interior contributed vehicles. let market have sequentially growth system, with diodes linear In in instrument DC achieving strong Starting core controllers, in comfort, saw specifically, our success conference greater Powertrain, transistors the end style Vinex brushless revenue gate and this well and Diodes and motors of TVS, momentum, raining

Our this are interior LED power market applications. transistors drivers our lighting elimination gaining and in also and light, hotel space, share exterior

combustion hall-effect c-position, strong sunroof traction switch also supplies and applications. gaining vehicle as c-belt, as Powertrain, electric family is unipolar as window well hybrid engine, into Our as market well Powertrain, openers for conventional internal trunk In for Diodes vehicles.

applications. has many of rectifier been designed into these SBR Our

XX% our electric distribution system, e-scooter as momentum vehicles to mini applications, solar and we diodes, the micro as have main power and design-ins market, In We system systems metering also the vehicles, for multiple and MYO revenue industrial including extend were discrete which increased growth applications inverters, and contributors Zener all secured continue smart of sequentially emerging our rectifier in system. opportunities products. maining in like in driving battery power as electric for MOSFET hybrid for well switching and

see CPU. product the lighting LED to the began increasing with applications drivers in during endpoints design-ins in our products for quarter, for multiple package numerous We our infrastructure as applications solutions smart as yVLDL PCIe and connect rectified also of high-voltage in continue adoption we as new industrial well well strong see for to designing to switch demand PCI the family. as design-ins Express Also UVC

We also AC-DC power for lighting, tools saw and converters LED e-meter, charging our rapid released newly in applications. growth

MOSFET IC throughout both of adapter grow discrete increasing in and module-based continue series our inverters the the to gain inverters. demand regulators consumer the DC based for power the voltage to Additionally, shipments SBR devices market, applications traction and for In continued fan year. with

high display video provided through the gaming demand saw market and users end and display in also We HDMI as high-resolution require high-quality increasingly port.

Also trend, for As HDMI for also as LED transistors, like see the our transistors and larger bipolar are of chipset We're interest seeing increased with well for continue consumer, products, monitor continues to as this a vendor barrier drums. grow. traction result in demand size key we amplifiers, applications strong discrete ReDrivers design. port our design-ins of display and to ultra-small headphones and Diodes our in an Schottky reference drivers including gaining Bluetooth number

Turning to generations application Wireless links. smart for point-to-multipoint to communication as revenue continues Zener well point-to-point communication expand, as Bluetooth Diodes driving in speakers TVS market. box, ear and smart and lighting

TVS in routers, and WiFi search in seeing product battery strong terminals gaining cameras, has CPE smartphone mobile RF units like traction cable applications high charging low Our MOSFET, and ethernet video modems, design-wins power our CPE, gateways also in and audio panels hall line protection cable for design-ins routers, broadcasting access We're control Bipolar SBR along network Outdoor more and sensors Access power applications and over and transistors, XG points, with momentum gained also junction system. access voltage radio switches, optical Schottky growth remote for routers, base applications phones, transistors, fast stations modem, LDO IoT point mobile applications. saturated, are high-voltage low products. XG new

tablets in for reached COVID-XX demand for our and and quarterly Lastly, quarterly Pericom products. upgraded continue computing, laptops, to related shelter-in-place revenue Due new driven products. we by revenue drive to record record other

Also the that in LDL, our USB sensor, switches the changing quarter, during summary, momentum path SBR, X to seamless are without seeing PCI strong growth PCI flexibility amplified for Company's in with to highest achieving and continued surfer the demand in with the we've reflects with of family there be strong devices quarterly in monitor our achieving product growth to along ended demand manufacturing and guided provides floor other continues XXXX. been ESC increase capitalizing our We first revenue to the offerings, Operator. Semiconductors mobile in in Gen Gen the end area applications. management, This and the a organically good support consolidated X and set the across Type-C markets, we the PCI DC Schottky customers for in converters, to timing a X also In the stage product the to we our quarter Express creation hall portable to future look Gen quarter, opportunities XXXX, growth forward We synergies for applications, products. and strong basis the now and a audio and timing year power in Express requirements. to for for effort protection sales both a Gen and the on product TVS, migration Express new design. momentum total and customers and solution low applications. This mobile and customers to footprint. also AC from success open X history approach our across Diodes to content share and offers With existing Lite-On questions. that, on our

Operator

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

Gary Mobley

be I asking that remarks, your now had under in talked a couple Lite-On, know wanted about with months by to the you belt. of qualifying your some out about Diodes prepared I questions on start you've Company about speak Lite-On some for but the you existing the time some sales acquisition? of facilities, could line of some rung the of just out manufacturing synergies the to of your products

Dr. Keh-Shew Lu

to in the we probably qualifications. finish qualify currently, yes. Well, completed product we the we quarter, almost to more Gary, And one are call done. Fab. we And -- aggressively the are JK be should

are we ramp about time the get the at the set to is customer looking currently XX% and to so to and customer, site second Okay. notify takes it up change loaded. PCN, But the do probably

by around it end -- third somewhere to and longer. much XX% at end quarter some because it and inspect them time take for take our takes the this looking -- year in of XX% change, know are customer probably for and of We even of

kind looking So that schedule. at of are we

Emily Yang

Right.

this Gary, So is Emily.

So just schedule. is related to color depends market sales the to little a also customer segment qualification on the think synergy, this really add bit the I and

of I the would a somewhere and think I best to the So also for synergy, again, down that the between, take probably really scenario right? of months to it's couple segment say, maybe six area market going it's to specifics. customer years,

Gary Mobley

related industry at assuming underutilized constrained, to manufacturing had capacity what are I the qualifications according to be wanted constrained? well could capacity In take a are Lite-On, an Okay. your Diodes -- for capacity as in your some those question lot who In words, where itchy having how a all easy, circumstances competitors to you of benefit Lite-On. will plan? I to the follow-up ways go this backdrop from from other it share market guys getting with competitors given

Emily Yang

Okay. Gary, that address let me question.

Diodes, I right? is shorter at do quarters, just continued in constraints. growth we semiconductor just our global did This actually If again right, right? XQ, customer a sign significant really about expansion of current talked and at year-over-year which think right? to the the the So the look in of two about seasonality XX.X% if we for see is average, a some slowdown, quarter-over-quarter record midpoint. evidence XX% success product And first have at help quarter strong success, supply we we So of continued overall, we the with guidance, the initiatives, X% a sequentially drop. revenue the actually look last guided compared for our growth, the X.X% we

aggressively capacity some and capacity term, Majority MOSFET, with GFAB, is we we've think So able also partners Dr. working also think Semiconductor us out that I remember, So enough the at true that's the some the really aggressively capacity. tightness. is their that But the expand MOSFET, are our foundry understand of demand, right? this more FAB X-inch, to areas, our we the resolve expansion see as with GFAB the And right? both have in in additional will if the resolve bottlenecks, problem. the the been that to ago very acquisition X-inch of longer we of for also, customers, the also recently kind other acquired Lite-On the these to balance moment, closed we working and we've mentioned. of X-inch been Lu do of FAB working the actually November, in SFAB as give well actually you were year what some doing than a I JK FAB and to at of that And this again, FAB for X-inch capacity with than right? we actually

are capacity with all positioned And with this the think for our is I to our of right? I business think So this, focusing it. well future on we support internal growth. So additional really

Dr. Keh-Shew Lu

-- up Emily Shanghai addition talking to up ramp ramping capacity FAB. in what actually SFAB our In about, Shanghai we X-inch on FAB, X-inch

Operator

you. Thank

Our line next question Cowen. with Ramsay the from Matt of comes

Joshua Buchalter

I driven being seasonal situation Buchalter us of above your Matt. the of This is by, the you unique are much of aren't? indeed is previous asking question guess, capacity fill slack bit Josh guidance you significant Congrats to understand some on a guys in internal some of the on own going and behalf that little being results. peers orders differently, little great to able your help having in a a how first pretty quarter

Brett Whitmire

right. exactly that's that think I Well,

of have Some continuing the that be of -- fact through that, the a continued it's that it's we expansion as the avenues, and we seeing top prepared advantage we're of we're been of meaning sure across strength take couple a SFAB. for market to have is On and make the we've all that. well time that strength actions be to LSC, that across as seasonality able things. to capacity taking GFAB One, various broad

us above allow quarter. the growth in enjoy first that things seasonal those of blend to a it's think I So the

Joshua Buchalter

the the on rest we of then, full year? quarter and can you're it. I the year, seasonality of about congrats us again. the quarter, year? the given how fourth anything Thanks guiding realize not quarter of and but guess, above Or the and I rest should second Got think seasonal provide first And and into visibility the you the

Emily Yang

is Emily. this So

comments. few maybe start a me making Let

So provide we the first beyond don't quarter. usually guidance

I markets right. dynamic, mentioned overall, think Dr. Lu the feel extremely before,

need So, closely. just we to monitor situation the

to this Diodes. think not specific I overall, is

expect an think I up XXXX everybody market. to be

think as I we'll or moment, throughout we but this you the to progress not guidance the definitely provide the keep position call we're in percentage at posted years.

Operator

question with William Thank from Truist the Stein comes of Securities. line you. next our And

William Stein

you Thank my want like question. combined There's it's my that very especially for Great. that's of together, taking a companies to OpEx surprising. it, congratulations, guiding I would guidance. add aspect little the one looks QX stand-alone almost delivered strong of dissynergy. The sort you're though, the to on more than a what have

I talked can related required customers? you. follow-up, heritage you is? as any, Can to to think required, about develop production Dr. products a bit Diodes the a Diode qualify to and you the to you cross-sell as talk it's effectively perhaps Lu, this costs if portfolio to you've that Lite-On can are what Thank line. that maybe perhaps about on on investment incremental little R&D a that the the quantify what, And Lite-On where incremental level something that's

Dr. Keh-Shew Lu

the Well, LSC expense -- we Diodes. is in level of the lowering R&D

same their do intend currently to about is I to the So, has. as Diodes R&D increase level

So I intend is to do. we that intend -- what

type what's intention introduce product. type spatial using most of their question? need product of the focus to start product introduce product focus to of differentiate driving drives type the a my another And differentiated is Currently, product. the commodity I And of -- mentioned and technology. we is of the Secondly to is them

William Stein

Lite-on into cross-sell customer effort asking your product the was about the base. I to traditional

a proving to products products to Perhaps happen. an I incremental it is developing quality think R&D Is you heritage it of that your new to had out the Or these make a altogether? in investment customers? matter bit. discuss you can referred of just that

Dr. Keh-Shew Lu

yes. synergy I they No, are automotive market segment. is that. the talking Well, synergies. very about. weak just One about Number We're in are one because talking is, industrial and it's but market three not think we

design-in typically So we Number intend of introduce synergies. is segments. to cannot designing-in portfolio. focus, improve customers. those multination we customers. a lot two -- three to customer major product that's those two we're product their the focus improve They into to Number market And the to is those going market the the do, do

We product sales and different the are in portfolios line product adding sale the on solution the is solution into solution into through acquisitions to our focused we're acquisition we past. portfolio inside and sales, Diodes that ADAS total going product and of introduce is to had, the requirements. And instead them LSC solution adding customer component

So those the synergy go is what than be enough key good do the but will one we their going just intend for product action, now That's other the customer. qualify of major one the to to after. we're

Operator

Thank question [Operator you. of Instructions] Our the next Loop Capital. David with line Williams comes from

David Williams

me maybe think maybe you you that a those seeing those maybe begin in today. picking be? the I may fall maybe of the in appreciate returning as ask little question, from get wins? where And been Or terms to Just those competitors gains think your quarter of on supply. how to a let it. terms or Congrats you're and thanks certainly see competitor customers Do ask wanted some constraints for share and sticky to to a hop the bit up of about that's some fairly you have capacity sticky you off? new unable do reversal of

Emily Yang

Right.

Emily. So David, I this think -- is

Let me right. address question, that

the time really customer market the opportunity that create we any one of about. expansion focus on content Diodes, focus key for right? for change a expansion and is us talked there's So always So to

a doors going a definitely opportunity, short will opportunity, and be us, not that open that is I So term. new new to be to long-term believe

the to again, our what to continue content expand mentioned think, Dr. I the and So just total technology, drive solution on sales been we've focusing Lu earlier, and expansion. that continue

capture a opportunity make relationship. the So sure and to and we build the present strong we just when customer need customer continue to support it's

short a that term. So will in long-term be such a business

David Williams

maybe if when of or terms kind benefits? the maybe more in rates in margin the And then you think of think average do profile How can the LSC utilization of you And quarters. in Brett, gross legacy of average? Diode maybe Okay. get margin, how corporate up margin about kind with the the gross couple next you line the come the

Brett Whitmire

David, we organic what the what about the guide the which consistent would consistent we're consistently I the in talked products see Diodes see, think margins. margin basically I be. thing you'll in the in and Yes, LSC a that impact LSC bringing to we're to the working improving immediate imagined Lu little Diodes The on, is will was of Dr. help you'll had that had think business, And said. we as we're LSC qualification what bit, what factories, the the

be We making multiyear momentum year. as the the are synergy. more amount listed, a expect other of synergies these starts, us gives out of of which were able the start areas we then come decent those to middle of And that year, to

real as design-in the Dr. so traction more Lu And with design the in line, mentioned, immediately invest start product getting key, and win.

lead of line think the synergies, our be traction growth. longer margins can with get is But some LSC going bring expectations quickly. some this to so in those for activity on we I that continued time And gradual to multiyear a

Operator

you. Thank

Your Tristan next Gerra Baird. comes question of from with line the

Unidentified Analyst

everyone. today. Tristan This Hi, Yes. for is Dustin speaking

about assets. question, you supply some first So and constraints for I earlier talked our guys know

supply have ASPs? if that's a on maybe secondarily, the And And after. are you to do that, just disappear? follow-up given I First, when you mix able raising mostly in Then can want clarify tweak an just may plan then on give tightness? expectation to you the guys automotive. constraint And

Emily Yang

Right.

question. me So address let that

customers' is capacity year, to seen, really the our I in when true expand lot us, this really So position no demand is half X-inch with about So in talked shortage we think overall, right? little really position shortage significant think driven this some are to the I more be to capacity by the as really ago. and year focus surprises, we're about acquisition increased And second predict acquired to continue what X-inch well. expanding a Lu going able right? of effect that focusing the be the overall ramp in area. to being X-inch. we X-inch for Dr. to on to of industry, has And X-inch growth, Lite-On both internal think SFAB a capacities also more What and semiconductor future So bit than ourselves support right? been going support increase don't from for up by our I that capacity we've a we talked the to is the over. GFAB Diode is the

second the So to the mix. question is related you have product

the So can the changing for focus Diodes. we of that margins guys demonstrated ongoing to been be some and results the mix, last product And definitely Throughout improving to few already. will the that years, see focus. you you an continue have

really continue to new focus on better with the want customers' we driving margin profile good support So to products to need.

strategy So that with not change. will solution fits well really our strategy. sales total It

right? part expansion. the really definitely also Diodes. for price sales that's the well your really So the question, focus second focus the key and not of Again, I improvement as we solution think total So demand contact to is on increase creation again, as product want on mix

Unidentified Analyst

very strong. been And Great. POS obviously, has it. Got

record. I think just you was said a guys it

have recently? overall, if wondering X X been changes any Tier there's quantify finally, guys significant double customers? either seen or acting evidence pricing been them? you you maybe Just Tier And of then ordering could how at has And

Emily Yang

Right.

my I we which So definitely, that speech, regions, seeing of before, the in record is is seeing the normal -- really we that growth my across So XX% when all XQ, is reason right? more in strong demand firm pricing we're POS. the mean, strong the revenue a have seeing holding definitely mean, overall. I actually at we're guided We're demand's getting than momentum supply, midpoint, actually definitely, the a which tight,

really I them actually a focus with build relationship be we the so a better true our them portfolio, support and Diodes' continue demand, that's can is long-term their more will with right? provide again, focus to on been with our So focus. to working and expand customers, focusing always to think, understand continue our

Operator

you. showing further no Thank questions. I'm

turn Lu to with So for I'll that, back President any the over Chairman, call closing CEO, and Dr. remarks.

Dr. Keh-Shew Lu

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

Diodes (DIOD) 17 Feb 212020 Q4 Earnings call transcript