DIOD - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to Diodes Incorporated First Quarter 2022 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, Wednesday, May 4, 2022. I would now like to turn the call over to Leanne Sievers of the Shelton Group, Investor Relations. ahead. go please Leanne,

Leanne Sievers

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

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

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

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

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

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

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

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

Keh-Shew Lu

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

and key the consecutive a continuation record revenue record time earning the including share. metrics, fifth sixth consecutive represented quarter in lock Diodes exceeded across quarter outstanding financial the down related the area. quarter first XX% that We COVID profit, margin record history, in first company's by again for Shanghai and most considering per the China, The set the seasonally new team, record the and execution the of is once typically especially recent down quarter of in of non-GAAP gross gross notably

let affected this take particularly continuing, to moment our lockdowns employees families. to first extend wish me in China, by Before the our their in and well those

sleeping employees, providing at facilities. shower arrangement local assistance been have We our impacted including relief for and

day, the a difficult employees and important all be is meal it company we family providing In to those time. addition helping consider in full to through get part our them to members,

result. our to back Turning

expanded along by well basis XXX of revenue. record revenue as XX% industrial be performance strong gross margin with quarter expanded margin margin reached point automotive which as to due greater utilization year-over-year mix product, to the end of Pericom product Our for loading. and continued in our in driving factory the market and higher achieved The a the market,

adjusted we relationships resulted total and when our it expanding increase Another delivered key we momentum. customer share in solution and expense sale over our expansion period. in factor design combined management, diligent the content previous initiatives, our per year our to incurring been And earning with almost has ongoing approach XX% success and

the Wafer to which our Facility onsemi and Maine industrial South quarter, the end Portland, growth initiatives wafer announce acquisition to markets. capacity accelerate of Operation, our automotive also for were provided and product pleased additional in Fabrication proposed we During XXX millimeter

quarter. to transaction this cross our expect Europe to day increase Asia in our in existing with We the our internal together based support footprint and and U.S. The greatly growth. future second our the further enhance will facilities capacity manufacturing facility global

another end growth market we Looking consecutive quarter guiding Xth in all quarter revenue and our With products also consecutive discuss first to that, and turn results geographies, higher guidance and of growth let all across remain demand the the for forward, financial are and for growth in quarter now our detail. me Diodes. of and record and over strong year the our at Brett second to level quarter solid the anticipating more quarter, second our Xth the profitability XXXX of for call and target

Brett Whitmire

Thanks, good Lu everyone. Dr. and afternoon,

will basis for revenue year-over-year of of quarter, investments, $X.X operating XXX,XXX at would first or gains before well $X.X million million XXXX interest on This acquisition the million, in and the intangible million sequential million the XXXX my for $XX.X that non-GAAP first X.X related million or million consisting each revenue, to on operating on for which increase sale in the of in a $X.X release XX.X% focus XX.X% quarter and XX.X% XXXX. million and in of the or basis $XXX.X and expenses million or XX.X% of fourth from $XXX.X was million, in due approximately quarter. GAAP X.X% of excludes for revenue, quarter foreign was As detailed quarter million, million other gain were X.X% press the line on were the a revenue, $XX.X primarily X.X quarter Income the $XXX.X in from million X.X a a as the to of of $XXX.X interest amortization of previous profit results, non subsidiary of items acquisition you of income, record also costs. financial $XXX.X our the a investments $XXX.X interest negative GAAP of I a X.X million today, items quarter loss expense, million, non-GAAP on XXXX. the first quarter record a of asset XXX more points compares increasing a our expenses first comparisons. the or my included record representing quarter fourth comments change quarter Gross an the for of review XX.X% to the of revenue. $XXX.X XXXX expenses, prior of unrealized unrealized to other for manufacturing Revenue of compared the part Total and as to loss income of was quarter, non-controlling million refer amounted review, currency income. a couple of related in taxes last in and first

in our effective or tax was income per the $X.XX $XX.X first Non-GAAP taxes for million to quarter GAAP intangible was to the diluted first XX.X%. $X.XX XXXX. or represents Turning share, a costs. first quarter of This X.X income shares. from of $XX.X for in compared $X.XX adjustment of XXXX of first per was XX.X per million an costs approximately income the share, million, and adjusted GAAP rate $X.XX $XX million, or net the $X.XX million of quarter quarter in compute a X.X% of the diluted diluted income excluded $XX.X XXXX. million $X.XX share, fourth income in asset the or related income per share first net XXXX. $XX.X acquisition first share, diluted quarter per EPS quarter net to XXXX in tax and per or quarter quarter first GAAP used the share of from was non-cash improvement share in count record investments XX.X% related from last X.X of Share increased diluted XX.X% improvement diluted per $X.X net million million the mark-to-market Net year-over-year million quarter which diluted acquisition diluted the

quarter, revenue, $XXX $XX.X of of year-over-year XXXX, have in $X.XX increased past basis, the XX.X% share was the compensation year. share from EBITA highlighting EPS based diluted increased million by million and quarter the share adjusted of over per would first Excluding GAAP quarter for first our the earnings $X.X continued $XXX.X quarter. per non-GAAP expense in compared XX.X% for million, On or EBITDA first to quarter. both for first a XX.X% the prior the revenue of or improvements million,

CapEx GAAP GAAP net have We quarter from Free income for $XX.X flow EBITDA, operations earnings non-GAAP which million, cash onsemi the which million for additional net details. cash was income $XX.X for included the a in and long-term of negative Cash million quarter, to income a XXXX. Wafer to Net of first the the $XX.X down flow included it acquisition reconciliation a first $XX.X release adjusted $XX.X flow deposit provides capital and generated the on million our included of of was debt. Facility. net million approximately was expenditures. pay which proposed

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

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

into or impacted minus plus and expected Backlog Now for quarter, be and are and expenses growth acquisition intangible XX.X% minus or GAAP are downs to excellent the operating X%. or are to which lock very our be million our assets capacity outlook. approximately minus facilities gross of to guiding until local Non-GAAP our improvements, GAAP related month amortization going during $XXX China, quarter the strong approximately we related first revenue sequential plus in and X%, XX.X% adjusted Shanghai area, expect of but in to now. at X%. recent revenue, operating execution for to margin COVID be the second the the expenses plus remains With of was demand due turning especially

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

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

Emily Yang

and Brett, afternoon. you, Thank good

quarter-over-quarter, the First quarter lockdown and midpoint slightly our have typical demand achieved across customers. delivered guidance, of regions. could a have been the primarily if above the seasonality level better revenue to by strong product increase transportation than which higher limited even of we that China We performance, all COVID-related challenges by is and not the impacted driven

Looking achieved both more quarter America, due first in to closely in have revenue the of We and POS record revenue. worldwide at which Europe revenue. strength record

very demand, have the impacted to lockdown, late in slightly delivery POS continue on China also product due associate to the and was quarter. challenge but the Asia

defined in distributors ship being but range remains all increased at slightly result, yet not of and quarter-over-quarter XX remain the XX markets. a end As regions to weeks our and across our customers, our product weeks. to strong to very of end distributor due inventory demand low-end backlog to Overall able of terms

global the at sales Looking first quarter. in the

XX% XX%. America Europe Asia and of XX% North represented revenues,

Consumer Automotive and Communication end our XX%, markets, markets. XX%, We the represented of revenue. revenues XX% and achieved XX% of Computing Automotive, Industrial terms record XX% revenue, In in of Communication Industrial

would product auto of record, revenue, is XX% point total our XXXX step new and markets which to industrial automotive, which I revenue. seven representing target end set is Pericom consecutive combined also total out closer a industrial of that, one Our like quarters. of revenue the XX% our also to

increased revenue the review Xth me details. This greater sequential record considered market, for extremely is with let consecutive environment. constraint markets X% Now, year-over-year supply the new Beginning to and XX% quarter. set particularly a noteworthy in end automotive

be attributed past Our expansion ongoing over initiative years. the this market can contact success our to several in

share that Type our particular some areas crystals, driving, system, for growth, C In drivers, switches, has of which oscillators, the style, DC-DC demand powertrain. of a ADAS, also connected clock expand our each and design wins driving, our switches, will to to focused Additionally, consists and with with been telematics our application contributor TVS, new we video comfort infotainment win LDOs ICs, USB design and key contact continue areas. converters. three application power connected safety in in this includes momentum highlights I

bipolar for wireless TVS, controllers, ports charging charging wireless C ports USB product Additionally USB MOSFETs and applications. demand see higher Type continue in-vehicle and charging charging to and charging.

the and the vehicles. battery during [indiscernible] safety, seeing SBR EV driving continue and GT manufacturers. automotive products hybrid light, oil, newly and Volt gain seats the XX control rear switches XXX found For field, to the automotive electric offer which window ABS and strong MOSFETs. and detection inverters motor DC-DC for pump, X.X style side LED to including provisions power for Also like rectifier we XX-volt EV of DC and infotainment lighting, competitive USB for applications continue interest mirrors. and we Volt quarter gain subsystems. central We're Diodes drivers, motors, and electric brushless also converters and powertrain and our the daylight and and battery heating, along TBS, In introduced with see support edge additional traction in view lighting design chargers. comfort, management conventional inside running increasing to powered demand for The system system LED unit power mirror lights, continue major covers applications exterior MOSFET electric SBR to lifts steering, with headlights,

designs industrial IoT sequentially quarter. growth for automation, particular a to industrial in number family. non-isolated for year-over-year converter record consecutive applications, voltage home AC-DC to market fourth turning Now controls, saw motor and the for high a revenue large new of set We X% our XX% in

broad electronics DC and commercial building as brushless see applications, interactions HV-AV to continue power lighting, as motor, power industrial also industrial design We DC-DC for and supply systems. well fan window to

and in panels, factory green and control Additionally, sells applications higher including charging system and drove sensor, system. distribution automation power TBS distribution power rectifier

optical to Our In see the several demand primarily sequentially, and AOI. market end field contact revenue from scanner computing the low year-over-year, continue as such momentum typical inspection check PC to document image market. but and sensor X% quarter in ID the automated due scanner, on product scanner, line applications seasonality card X% slower increased or declined

in for design along this or and especially graphic our cars. in gain numerous with continue DisplayPort traction We strong analog product. in switching personal data to station center mocks servers market monitor Pericom wins We and AIOTC secure MUX the a

SSD by demand modules driven strong controllers. saw also MUX We for SSD and SSD enterprise high capacity

during and switches data are fence our also expanded and TVM center higher in applications applications. our we the read compact both We DC and momentum and combo applications quarter, switches notebook see to also as X.X Hall a and applications in power applications. XX% cells downstream up Type ReDrivers. drivers. active prior o'clock station, buck buffers products revenue slightly PCI performance mobile and laptop, sensors, the Also C notebook, switching gaining In dials as ReDrivers new posted desktop facing communication switches, with grew Express high wings cables Express CPE in market, and computing desktop and record. in supply dongles for was a Rectifier five set revenue the year-over-year well quarter station, PCI interest poor with and our PCs. from docking the to continue generators TVS getting are and in power gaming Also buffers, revenue increasing tractions HDMI the converter for we USB

wins for high solid our applications in We with also saw new design LDOs revenue or PSSR smartphones growth.

Power product design communication including also and our product in business. TVS for wins IP IP headsets, driver in and modules, has educational a increasing new routers, for schools achieved variety momentum of the crystal system oscillator which support strong saw sales phones cameras. safety applications, Bipolar and also We critical hospitals, optical product been we leading design universities.

due the XX% combined market year-over-year primarily China typical consumer with revenue down in consumer increased demand was Lastly, sequentially, personality in X% to slower region.

for largest devices. phones, quarter of the consumer During the IoT LDE vendor one designs as driver win our linear smartphone and numerous

adoption PC designed and per read reverend IoT per are drivers gigabit second chips major X We XX second gigabit also seeing that for applications. HDMI in of

from see to home continue demand family converter strong consumer buck the appliance and market. DC-DC Our

While headphone receive pistol demand tracker smart system and our and for speakers stereo sound drivers increasing Bluetooth drivers application.

throughout growth quarter We Fabrication in products. differentiation proving detectors, applications of competitive environment. is level other a that Facility strong Operation, summary, also rectifier from of year. our like smoke demand all results, and growing sensors, TVS Diodes In high we meet addition a to Diodes revenue for electronic the the applications increase which be of Operator? capacity positioned demand, we now open saw very and constrained to and backlog, Wafer for out with home And questions. this strong starting onsemi record with growth continued new to year available are future to With for and floor this have supply well the

Operator

[Operator Instructions] from line Cowen. Our of first the question comes from Matt Ramsay

Matt Ramsay

operational able in better. understand the on question team given Lu, second first and China to impacted you've given pretty to to impact Dr. give all bit just to the guidance there's situation I given to just quantify of have that the over mean of any seen that’s I say -- that? guess Congratulations the Thank all can some the for And especially there. the team on way raised there? to and challenges COVID try operational you Is results, in remarkable the over of quarter going quarter you. China been I lockdowns that quantification my right results, that's it's and a quarter you're first that sort like your now. in the the in both guys us

Keh-Shew Lu

number. exact cannot probably you I an Okay. give

for lock not and -- the about And other the to down – site, to have end are able manufacturing of we guidance revenue, and a and two, we us. start why then one some but factories for through due other down XQ Pericom is contract record of is is packaging measures turned our we is AOC Shanghai quarter. And not week operation, have major we about see record Number not we lock only crystal it's major, assembly. impact have perform is major to for XQ to a do or operation that's then virtually Therefore, us a have of of us. AT Shanghai profits. But, Okay. only and actually product for operation, for the to last our

impact And not the so, is there.

we the first the quarter, already month through quarter. airport second the of go in the Now,

So much able of to instead us. we this at know That's how we are we impact X.X%. seasonality for X%, why guiding typically we are are guiding or time

still zone Okay? But clear above we is XX Even the now green key future, in the people -- out million thing area yet. of picture at the even Shanghai XX the the now is, million Shanghai for have still, today, area. people still

better of come factory was produce special to the to production, and slightly aggressively are see, a to can the we get that to you go locked there's there. the part XX% And permission able or XX% But operation, wafer, announcement watch come be and probably execution stuff. the factory us XXX%. then, So a the called very part of give some to piece in have for a down to we continuing so we loop we get operation. it's government, using some out, XX% immediately peace able people - than lock out ability When we not excellent to cross are the It's over taken, reduced. a down the and team the continue try

from we’re think a I So of operation to problem view. have don’t major our be point going

execution a have very, team think we of I outstanding day.

be our happened concerned what's going we the don't more know, We with Now customers. in operations. to are

our concerned perform own more is operation. this from us So

believe can Our strong. still we make demand strong, we still backlog our And very our guidance. very therefore,

Emily Yang

you can situation as imagine, So, dynamic. the right, is extremely

team has been impact. So aggressively as well creatively as the very minimize to the

Keh-Shew Lu

our in the back come that key future? Sunday priority. is then question to for also so The is how on in the the a that that employee going like we lockdown you and would I can And overdose really the, have, be color quickly more

but we're only care employee, for or yourself, also So for not family. him their taking to

appreciate goal. make effort, very company's they So and to a hard they work our

I So this on that. is want, a thing one put I a note

Matt Ramsay

On all end continue are I Emily, question, you on some add business. to it's way ability which Scotland a to support their My capacity it very acquire it script, follow-up guys in the the think be gotten of the parts Semi, guess deal your around. in capacity. very adding from time, products situation over GFAB and the at know you've that understand some to touched going you've away prepared at I now the from of is walking they're of to I fluid fab I may the

quantification of So be if additional bring capacity, able can we be of would on to going timing Asia a way get really there's outside and really, to any online of helpful. magnitude you're that the sort

Keh-Shew Lu

separate is took is or on if one from good That one lucky the because are can And capacities. I fab, tight that we both from AT, a is wafer planning. we we two think say we fab, you either have wafer is very

ramp at that look start loading area, XX% we supporting site. and That report XXXX. it we that the we is purchase XX% in down support I you in qualify that Texas year to to coming the Therefore, up If a facility, Diodes that already in in year. year mean cannon a Instruments GFAB

And talking our support this day demand number compare wafer each XX%. can year, you down much than, we're we about our XX% Instrument So is and go when Texas commitment that our can then to when of on are the more are is demand. see XX% to number XX% what or with up days,

to expect what the that's GFAB. end next is On that month, already our of And from Then, obviously, acquisition this we expected. that Semi. know or So month cross you for we wafer

may our start but capacity, be significantly flip be and technology, year, of should up wafer we increase Okay. we we our to would capacities. And one in not think to, available, then we wafer able to immediately move again,

we ramp almost it we to, another up one and these now. So, ramp up, is and actually as expected this

because the law So, year, the it then you'll than continue ramp stuff much output, if better look adjust last up. be at that's to on you body

one, purchased to in one only are then are going capacity, out the LSE, continue but XX% at of time, capacity. at originally another last XQ of continue from the the XX, we a we it the end that's in which is because last fair, then So, beginning we same the increase year, we year, we intake the

So from this, I Shanghai loaded and all can our of the going have capacity. that some and continue give in same we go the AT grow offload Then increase a knee in to at And actually, of to are no was the we're time, are AOC it, and continue own at these okay, And the our all it view, overall, we are need, when turned where to using capacities. start when I continue we you it's to at the unloaded to point need. fully see, you for we still potential again, AOC they AT, load and looking fire capacity.

continue So, capacity are supporting able increase the to strong we but is strategic relationship time, this then of with kind same by develop I and our tight, our at customers. to very are support, we can, able And very a customers. strategic

for And can we how continue business. our that's own so think grow I

Operator

Our from Tristan from comes the Gerra next Baird. question of line

Tristan Gerra

if service is Maine that you upgrades? a A X-inch commitment you are your quick [indiscernible], X-inch follow-up remind Could to the foundry could take there. product, going you bit it making straight planning your talk you does question or production expect Portland, you own into go fab. on us X-inch, And how to the are qualify long South your about regarding and also, to that a product transition is little

Gary Yu

equipment. wafer the first and you Gary. question Okay. ask me Hi. is This let inch actually is a a -- And

Okay.

a continue did GFA. support And technology technology to the fat. So, business time, fat. fat the case have we new product, at into like same to and on go in of we device those our, the the internal GI just we transport advanced this for short-term, are our through we way the will wafer kind like analog, we especially also, qualifying plan do our are the qualifying and wafer And our for for process

So that you our and and down. and wave production fat to to hour the a one half probably at the take down service qualified get one me probably same and time going and product

plan. So, that's probably our

Keh-Shew Lu

on we to -- supported have Well, amendment support one the fully for year.

our And the will technology and and go our But then start and own ramp to product to won't loading notification, in give here down. probably start the so support the process, put it. customer that to we take

So, the timing start go hours. is we down, can just when to support right, up because them they we go

like this XX%. So we it's and is, GI to do with then support down committed come we -- what

it ramp up we So each year.

do in should know think believe acquisition we the way I it. And like to And so how helping I to similar help us And be that, the effect GFA adapt. us out come -- this help demand us.

Gary Yu

Yes. Definitely.

Tristan Gerra

last see whole a were And year? this relative the plans? increases how then of bit And company view later great. pricing you Do those your Obviously, slowing you Okay, analytic a to increases industrywide. how number should for year that we the price at look do there price industry?

Keh-Shew Lu

still situation demand extremely the market right? strong. last backlog didn't I think, overall, much the time and The we talked, change from

So, but this What supply we take increase, come So would view. right? usually strategic you price between demand there overall, talk don't still expect down. don't Diodes get of much we about price with pressure kind and more really an the right? of a So always during pressure more supply the imbalance condition, the is on price market the pressure, also,

bond, to customers within can can customer In customer. the relationship. within customer. the with pass cost only we continue the down very to return, we So, our We the work closely, our expand content the want to grow

that the of will seeing and lot good are we a lot success, Diodes and So forward. to strategy of a moving traction be continue

Operator

you. Thank

question from the of Truist next in comes William Securities. Our line Stein

William Stein

to disrupting to are questions. matter or business supply out issue? outlook, that to Or results capacity a that Or trying a to materials want is manufacture? the it's, to I for regard lockdowns. good very viewed ability on. more or ship in with just That's take whether considering of topic I of follow-up Congrats demand a taking and the disruptions experiencing the on on is I'm more by to in also Thanks of customers figure this the your as it to my And piece disruption your going all as plant? product? of disruption the ability effect on simply you parts? ability and it more COVID guess, issue sort And Are customer's

Keh-Shew Lu

we to Well, or supply to permission our frame shipment government our is we a wafer the Well, give building building fab, or effect to special with negotiate I've able are people. because the to the the look most the the, compounds us from None. are more material, us done from get material, able we ahead, supply. get the and

get to down, action really of proactive manpower till really by there, think very credit duck key material. I But affected you fail prevent closely, today, to cannot the our the don't a should the team any today is weed we because we manufactures they over the management that ahead thing people building when to way of take the So for for And come building time it the give material think shortage get they I watch problem. in.

the so days. they there people, XX walk And in

for shift So the people. we to fortunately, have

arterial And them we two So the hour, two shower them take in off, to to provide we in Then the the why meals. office they we then sleep go shift, them in each hours. for in shift when area. they're provide shower, work room, build

-- who we come release then work. and start area can't we'll we COVID-XX released them But now was But when they over, walk was room can back people the to And work. And back and in about continue come rest hours. we ask immediately to they they ask on Originally, them the XX%, manpower. all our come the to shift, we after to of have there. know can, lose come then the be people. hours, they then don't will they released. they two quickly the zone we they today have in the back shift two that then from way down, come start when that after But enough to to started And XX% increase back. contact clean, go is other them then will only So

able not the So people are of but majority needs. our even of are today, produce we yet, to we XXX%

Gary Yu

Yes.

So add let additional. me

say definitely, impact. there's So demand, and would I from some this, both supply Right.

side, Definitely, the would a just us. logistic challenges. output the impact look mentioned, Dr. demand, on other side, you reduced, overall. labor have from manpower, Lu supply But I the the talked So on the like there's it definitely about say, the think I I at

a good. Some output have that's as over about the very, Because QX. a POS we the Asia actually record logistics was bit impact That's of inventory globally talked in still because as not It well. our end side, very a also I reason the the overall, but little record, POS, have customers company, of on capacity there. also impacted of reduced kind

actually very So I been and overcome we've both, doing different creatively would what say is finding very combination aggressively of to and ways the to challenges.

William Stein

the I that have, network quantify wonder thing? I imagine, sensible Appreciate is right maybe But factories a if utilization of follow-up, I across factory can you that. have if extremely you one that's If that would high now.

Gary Yu

Well, one our in mentioned, pronged call as continuing the are across bit fabs, of we've we which that to XX%, than things that, XXs, mid the highest little the, we're see Lu I others, that, the we're is to running higher in were running capacity Dr. across taking we some to time earlier. the as the full, think mid-XXs. at a XXs as went through And address efforts or multiple same increase high

Keh-Shew Lu

to is do to need about I I'm we concerned within, and talking probably is our you are Well, one customer. thing mention this, more

first just they area, down today. seven duck right? days just which Shanghai down, announced I to In Okay. the closest [indiscernible] going Central, they're quantum in from with is come get shut report,

more may to is able be Well, not that more concerning. and our customer -- So,

Gary Yu

very a a shutdown, match Right. shut for It's down. even that our and a uncertain have they us to government, to announced side our customer because customer

to, use in backlog who this different our of words, that's can products we able to able to reduce to they anything. I production. to kind But other So bail, to risk customer feel ability why our product is baskets can think probably who ship cannot our

William Stein

we squeeze you should be these guidance contemplate we news, of or such potential that if what into shutdowns more additional just one can concerned question response ongoing your you. Thank described, I If as see does sorts more about the guidance? for

Gary Yu

built actually our say know as we already guidance, all today, would So right. in of I into the, what we

overall, strong strong for get a situation consider lockdown guidance in strong China ratio the provide or still actually change overall, and the worse the situation book-to-bill consider So That's QX. we we if but dramatically QX from really backlog strong reason result overall. the we

Keh-Shew Lu

we from we at see beginning of great make reduce they area, at beginning assume we what total But like you this Shanghai today. And to But they start the some like know when counties. the is to assumption, XX I said, overall, to month, to shutdown. what their be

today and XX Okay. two just And XX is days, one one release. more, to two, about in more. the million the people county until million two three I of you from mentioned county, And every out is start

our closely we see So based on we guidance today. the current day, every and what tracking assumption, very is

Gary Yu

also manage, in to capacity, applications, some you and and extremely mind extremely, actually about maybe All but of there lot From that's multiple industrial America. automotive how used continue be point we Right. view, are statement that North strong talk we can in China, And risks strong. some be that, talk keep the I in other multiple the thing, actually the of about. customers, is it. Europe slowdown, that Even regions very of a diversify the multiple and devices

as to of is you. guidance today on base our to we say, what would definitely, it I provide So,

Operator

Instructions]. [Operator

David Our William of to the comes next Benchmark. from question line

David William

and customer any just continued the in maybe the or we being heading and maybe it you there? congrats are little seeing are stocks like that's changes on of afternoon. Are order produce, if ask the trying inflation have to behaviors patterns, in inventory terms with progress. kind a first, that questions Lu, of consumption? what you slower more Thanks into cautious their they the conservative Good or backdrop anyone the of Dr. given seems any or I seen for wanted taking maybe to

Emily Yang

Emily. is this David,

the answer me, Let question.

from story all, the look of high. I of the has really shared. NPCs first is overall, So softer. ratio I pockets at revenue some the So So in extremely change, right? tell, order right? still didn't consumer POS market record the little I see demand since, talk very to There behavior significant we China low maybe actually all, good extremely if are bit like the a backlog All the that point strong end any all strong. of mentioned, But capacities of mentioned, book-to-bill view, that a QX, slowness, like I

it's really area, for overall. not the concern when from demand strong a So really, other have us so we

David William

driven capacity kind you're Okay, constrained just think that have step a more it's just is sequentially. you or And bringing pricing this that if then seems about I guess, been fantastic. revenue I nice kind there. of curious makeup million up Is what capacity the how guidance, more by about, revenue, your fairly that like because and it fairly on of is $XX

Emily Yang

have or So think it, FCI really Dr. key about mentioned continue talk it's mix, I right, a would we size. the our into expand different if point. we we whether newer customers. be I one just the before, ongoing assembly say, product like Capacity, of about product Lu that you that's application, think that's enforcing, expansion to strategies

quarter-over-quarter. ongoing do we increase So, in

a the QX. reason say, would for I that provide we with all-in-all business, So that's guidance strong together

David William

last maybe for then just one And fantastic. Okay, quick Brett. one

about margin should that As trajectory head kind a do the And margin the that the through the we particularly longer-term think now more year? we about north target aggressive progression, as you're of think expect How range XX%, maybe of you we target. here?

Keh-Shew Lu

To question well. as answer that

the So, when improvement. for that that one things factor of key driving mix is improvement, margin actually the product

execute continue the do So if I improve continue time. believe will doing, result, see to over continue to you and continue we show we've to what been to margin

I this more products strong our building than especially with now, So more very, it's you're not very I don't, we ever relationships. than talk think sticker are, about how customer sticky

Gary Yu

focused to expect that, on David, openly. that still of think one our you're if plan to -- very well, a very a X.X And billion margin exist. what plan And billion profit to continue we think goal get of is at And we was we profit. gross to that continue traction I high, focused goal. you it to our be model referring suggests today, in doesn't very, gross essentially, of on are that we is the continue $X modeled thing as on plan revenue were is our be and would reasonable XX% that but revenue we've said, will look I represented it have gross profit to to dollars. maybe to dollars we think now, that billion XXXX we margin. say is of as our We model a to talking to And

Operator

question-and-answer back any remarks. for like to program to This today's does the the I'd program. conclude session of hand further Lu Keh-Shew Dr.

Keh-Shew Lu

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

Operator

you. your program. ladies Thank you, Thank conference. conclude participation the gentlemen, in does for and today's This

You may day. Good now disconnect.

Diodes (DIOD) 5 May 222022 Q1 Earnings call transcript