DIOD - Earnings call transcript Q2 2022

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Operator

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

Leanne Sievers

welcome I’m second 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 June 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 questions. statements Safe prepared that your which contained Therefore, protection in are subject in additional is risks statements, company the Harbor for may the 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 August 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 press net stockholders refer call, the attributable of GAAP financial Included non-GAAP and Also in this statements net statements conference during GAAP additional press conference and company’s to company’s income. call certain common release in as items, which release GAAP will we this definitions management press the management the terms. are Additionally, and discussions information company’s to include non-GAAP and and measures income details. of reconciliations during provide release to

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

Keh-Shew Lu

Notably, our you execution, Thank grew the you, COVID-related guidance. and operations of our shares Leanne. is production quarantine achievement grew Taiwan the to XX% reporting quarter, quarter period. during of our us and the we I’m facility in accomplishment above other This sixth the for major testament quarter the yet Welcome, shift profit be while results the earnings approximately especially consecutive everyone, closed-loop mid-point pleased considering joining constrained cities, thank over the quarter. of to two a In year-over-year, XX% months today. for revenue, manufacturing and strong team’s delivered China area in same Shanghai continuous the and still gross revenue adjusted earnings. to our second per record today that

automotive and Maine of was of of a product to largely reaching consecutive achievement in was Diodes fully provides improvements. especially margin, our automotive family new additional continue end time, the capacity XX.X% to future maintain manufacturing key Also as quarter efficiency third The Our combined closed all and the and to in we acquisition target successfully our were With mix main by welcome business positioned in execution this wafer automotive our for that, customers, was and gross the the our customers first XX% represented of this which with call XXth model overall indicating guidance focus Contributing revenue the fifth over facility, quarter. Diodes operational me XX%, support record and our markets our growth, as industrial due to to our available Diodes fab total markets. consecutive integrate detail. but facility now existing the let market, record industrial to the our also above performing consecutive improvement which and of model evidenced improvement a SPFAB turn revenue to our our of end and our to in more which target quarter into third to second also quarter exceeded and We our results, a our onsemi’s quarter the of for expectations strong South XXXX financial operation. the workforce of reliable as we pleased global results which only a traction XXXX quarter, for growth to quarter regions. solidly second partner shareholders. area has With Portland, of itself and XX% supplier continue during consistent the Brett The a gain discuss revenue not XX%. both investment we quarter

Brett Whitmire

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

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

Turning income taxes. to

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

for from non-cash or Excluding prior EBITDA performance, gains $XXX.X quarter compensation excluded by earnings XXXX, second million year. year-over-year. basis, our the XX.X% past second highlighting per compared like share more On the an improvements $X.X of for if adjusted our quarter have representing securities XX% million, losses year-over-year a $XXX.X our of in the second million XX.X% second that to of EPS XX% quarter. operating assessment record in EBITDA I’d and been sequentially per for non-GAAP increased $XX.X the share-based over on we continued point increase and XX% have quarter. accurate expense share would from both the revenue to and it would was for quarter million diluted of revenue, $XXX.X make increased of the $X.XX a calculation the a million EBITDA or GAAP

Free well related as onsemi borrowings the income cash cash the million as from was release $XX.X details. additional $XX.X positive capital adjusted expenditures earnings expenditures. of income to our million provides was which EBITDA, to to net in of additional quarter flow which $XX Net $XX.X operations flow GAAP was We and second have included for capital million, net generated included flow income reconciliation $X.X million, XXXX. the wafer including of net million a for GAAP non-GAAP purchase a Cash facility.

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

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

be XX.X%, for GAAP Now of plus excellent sequential growth operating consecutive and execution are minus minus are turning acquisition-related or adjusted plus expected With product revenue minus XXth revenue, million, be expenses or plus of of X%. to $XXX to Non-GAAP or which margin operating and assets to XX.X% approximately for intangible GAAP X%. gross we be our improvements, are expenses, amortization guiding our approximately mix and outlook. X% to expect quarter our

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

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

Emily Yang

good Brett, and Thank you, afternoon.

notable accomplishment sequentially guidance, revenue the in which, locations. our in facilities quarter Dr. in Second resulted our mentioned, Shanghai COVID-related X.X% in a lockdown of considering that increased China major mid-point shifting primarily the and was and surrounding as operation, Lu Taiwan manufacturing closed-loop above

Looking Worldwide revenue, more weakness record closely we quarter in was revenue second the POS down due across all have to regions. slightly, revenue euro. mainly the at

COVID-related supported Overall the Asia in Distributor and quarter-over-quarter, increased by strong. POS increased lockdown demand range is very of XX remained despite our in weeks. backlog sequentially weeks normal slightly Asia. was defined which XX still demand even and strong very terms of within to inventory

the the global sales at Looking quarter. second in

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

communication In product revenue, in communication record markets. product automotive, the XX%, and XX% XX% industrial consumer Diodes industrial, consumer and terms XX%, market, achieved of XX%, automotive revenue end of We our revenue. of represented computing

revenue out XXXX Our that revenue. which Pericom to total the industrial seventh the set our is record, target totaled market a of end XX% quarter. new consecutive combined automotive, revenue, exceeds also which of product our point like of would also I XX% the

end to market our Diodes and demonstrated high-demand to and other as strength communication in has reported optical key networking. our in area Our to segments as support Despite MPC adjust growth. smartphone This that XG, advantage within growth well market quarterly contributed markets consistent industrial multiple that segments, automotive have has revenue execution. quickly for and are like a been seeing the like our been record low we the in Diodes slowdown able the

first Starting as Revenue market. a the automotive and our quarter efforts Now, as in grew totaled creation share year-over-year, let for record time. ongoing end by me consecutive greater review for with XX% gains. well details. Revenue of the XX% market demand market the the driven reached eighth revenue

X.X-volt and systems, continue fuel Additionally, vehicle with connected consists and USB CMOS, our growth. our and as per opportunities to In infotainment ADAS, dollar as expanding which telematics to for our new smart expand driving, infotainment, in content design of analog continue wins automotive switches, compact converters DC/DC cockpits. ADAS well re-drivers telematics in we LDOs

Our for PCIe solutions also clock buffer, oscillator providing total and applications. timing crystals infotainment

for and USB Schottky LCD driving, diodes, a products rectifier, designs door expanders switches and displays, in the win units SBR, connected IO TVS control in telematics also We of applications. number

and continue continue our For and light, for LED to highlights safety, the diodes LED drivers see buck to and lighting style we vehicles, multiple back power interior pumps, designing the conventional and modules. and and LDOs system. a lines, applications. as drivers, control comfort, body DC/DC management regulators fans ramp our diodes while for designed solid switching display indicator for In protectors demand Volume converters for battery product which hybrid were power CMOS, several covers when electric exterior voltage applications into motor water TVS such search panel DC/DC fans, powertrain, for

went designs that continue our new accounts. We portfolio to key products grade XX expand product protection several at OEM also with multiple auto

traction and a seeing increased for industrial revenue growth quarter. was In record replacement. also representing relay consecutive our IntelliFET high-side power our XX% products and for mechanical the in fifth also protection are market, year-over-year We

Express continue enabling Our gain traction switch packet by mass PCI to flexibility. data X and PCIe X.X rich connection transfer video

released SASX test signals designs measurement are and newly and PCI new packet and multiple Express can serial equipment. switch switch protocols X.X Our like in winning

step-down while LED momentums high-voltage lighting. like being gaining are the applications into current are IoT lighting, smart suppressors converters designed our Additionally, and in our

also and see solid systems. for Our family power wide LDO tools to continued smoke wing product demands detection

the for growth strong system uninterrupted enterprise diodes strong Power market enterprise for industrial and continued share server and in power surfer also We supplies in In applications. Ethernet, applications, line storage, Schottky seen signal seeing data family our in MOSFET SBR market, product are gain product traction SSDs demand Diodes HVAC for for inverter applications. USB computing power continued applications. saw computing TVS the and also in our products switches as switching well power Zener our has systems as and high-performance in and protection and to over demand strong use

well notable seeing also switches re-drivers winning desktop. in marked increasing also quarter, notebook linear We in for X.X laptop wins our in AIO re-drivers designed market, USB-C generators, also desktop USB fan Diodes switches XX-gig quarterly and and and the designs achieved communication timing in re-drivers general SASX that and are adoption applications. power DC high-end Also and CXL new display as the Zener we products, computing PCIe solid sourced PC. notebook, tablets supports several slowdown and power switches In introduced application USB-C applications for growth multiple PCIe Diodes muxes, face our a buffers smartphones. into achieved revenue including applications drivers our power in posted supplies were that X.X especially LSC and the we gaming, of desktop and the during which the in as and record, considering protocols. LED support noteworthy Also, design protocol for and recognition

the expanded and new for ultra-low has push the the modules gig networking XG, particular, XG XXX sub-XXX applications we XXX demand optical fans Schottky XG release During in winning optical applications, including crystal gig CPE. high-speed jitter modules, oscillators were base packet increasing such jitter the in Diodes CSP PCI designs into design products number are X.X and into XXX a other traction diodes station networking. well Express Diodes activities as strong and oscillators, are the to gig, as high-growth in driving XG applications crystal quarter, and portfolio designed Ethernet. and as also of XX-volt SBR with switches our XG are gain mobile for we of and phone interface our with across and XG battery femtosecond. able In

re-drivers, applications. in for CMOS USBC smartphone design-ins seeing product also TVS and LDOs are We

the Lastly, quarterly in and despite consumer also the revenue we a achieved in lockdown record market, Taiwan China.

Also security Our has large quarter, alarms cameras, trackers, CMOS in number for small Bluetooth Diodes LDO DC/DC and devices. gaining the the gaming floodlight, demands our amplifiers the and applications, to converters power for design vibration home wearable smoke TVs, we a drivers headlights, displays, and and are motion design in wins while during security MOSFET see smart of switches, LED like and system application sensors home WiFis. TVS, solid market, applications sized and secured cameras audio including consoles, sensors. wins Zener continue wins from consumer

newest ecosystem delivery USB-C AC/DC Diodes regulation, by common smartphones a which a and portfolio and power XXXX Additionally, product and EU laptops supported of tablets the XXXX. is application by mandating port for charging fall

for and fast-charging power diverse USB source the delivery capability set complete devices. Our of sink solutions provides a

We also consecutive to ability with for to results, summary, continues record execute. of prove wireless In in for sixth saw strong revenue activities consistently Diodes growth our charging. design quarter MOSFETs our and

expanded the industrial contribution with an points basis end over product successfully the increasing market. in automotive, our mix from key XXX through are year areas margins, the We past focus improvement

our expanded recent to revenue we need our to contribute questions. that, addition the onsemi $X manufacturing growth open gross billion Additionally, capacity billion of in With our wafer including global we the and Operator? towards to $X.X XXXX footprint, now future of target expansion in floor fab and drive provides will profit. that

Operator

[Operator first question comes Instructions] from Baird. of Gerra the Your line with Tristan

is open. line Your now

Tristan Gerra

the In good percentage versus your to the that starting now? of supply times of right what context compare of you exceed your And does come how year? believe down, your afternoon. the some lead beginning demand of Hi,

Emily Yang

Hi is Tristan, this Emily.

that my can actually we’ve XX% I the been is industrial. actually slowness or balancing the on just is automotive, we XX%. see Like alone actually like demand or PCs focus definitely from automotive, strong. there doing is the our I just shared you pockets that demand, the demand think low-end there’s strong have our of utilize results But overall, growth, industrial what in the mentioned of some and backlog consumer we year-over-year area. smartphone that the extremely for speech and still And areas is areas like some

all supply So moment. this all, stronger I would our right, still at say, demand is than in the

Tristan Gerra

then technology maybe could over IGBT time? revenue? remind Great. as you any us carbide And exposure way silicon get potentially how And of we as to a percent quantify your of to

Gary Yu

hi, Well, this is Gary.

the to And We product place. me in try silicon Yes, our very design and team we carbide market Let okay? for get And this the are carbide. silicon to a at going working we answer have to Basically, to don’t released this try silicon have don’t IGBT. you. of we’re do we year. have have question our hard for carbide possibly, IGBT, end

Tristan Gerra

you. That’s Great. very useful. Thank

Operator

Your of Truist. Stein next question comes from line with the William

now is line Your open.

William Stein

What to is that where think that saying – up And fall the that Great. Thank great other industrial you. or we’re in products lead but Are we’re to Is pockets three making and a pockets a that comms. there heading are in fall times seeing to you more demand Correct consumer, that and enough for and it parts think like markets, it’s but those the continue parts little might And certain something capturing phase other I it weaker me in markets, as past? to these beyond end to end think Or a are capture is in continue to sounds I make end are Emily, as perhaps compute, you’re sustainable? markets the demand I in details, backlog it sustainable of many them important picture. so correct? called think QX? you’re point, thing. to areas? where contagion the you’ve always, that’s have and maybe you X is sure big wrong, demand think bit downturn there’s if those the of more the I’m those weakness? of within sometimes that there is in require you automotive, it shortfall hard to were strong Cs,

Emily Yang

Right.

little actually the a XC: a shows computing. And me result, bit more and see consumer. than just in we So weakness we a QX more yes, So within explain little let have refer the still details, still communication specifically consumer, revenue record the certain with areas talk about If right? others. bit to we we the consumer,

right. absolutely you’re yes, So

Within same some that areas market different are with there still definitely end the demand and market, softness. strong

support to talking that we’ve what shifting our good So doing stuff focus achieve been will and the been capacities order to in about IoT record the consumer, is we’ve within continue. like areas areas Like the really that. actually

strength, of right? have down, we we within China communication, think smartphone We’re still that? have especially optical a strength knows that We’re do I communication, XG But right? seeing enterprise-related networking again, record, a lot With seeing lot slowed of area. we still to related how do area. a everybody So

we record. the how that’s achieve again, So

focus us basically right? the the kind cloud focus, actually that And even is the utilize still to dynamically we’ve support again, of we’re right strength MPCs, been have seeing So anything low area, computing can related advantage we’ve talking we which about in definitely, softness. one Diodes the motherboards, and adjust capacity. is area server Computing, that, for flexibility, the within giving do enterprise, But area. seen computing, storage, that on

all along So it’s what been segments, This saying the kind specific think areas of of the automotive, matching pocket actually focus. each industrial we of I have focus. top we’ve on within of

towards. So that we’ll continue drive

Keh-Shew Lu

for can when – And our demands we end to you about, okay? that the you’re is I’d automotive. So if about multiple talking used adjust we that, by mouse can play we market in So for capacity that’s go talking different if product that to automotive. Emily for why support to support phone, design a about we like strong. same product they to very such growth can product go And have example, industrial. but our the market, designed we talking evaluate the about, that okay? for automotive. the phone been is okay? PC, like designed cell product trend be Similar see take product, capacity, in to for for strategy slowdown, it cell the additional one When automotive we you talking pad, in that a middle When this when

to design multi-market. strategy the we So designer the for is the product using force we’re

William Stein

hoping agreement one help understand a Thank us Portland I pretty to with that. can have you services the in appreciate clear place. seems assume, follow-up. South fab. I’m you. manufacturing I on what’s ask going mean If brief I I you it can Okay. have

you probably some in quarter. revenue from so And the got that

can understand you that lasts products own and understand, help maybe to and you timing support that how in much. So help that Thank very us your fab? agreement us long the size run

Keh-Shew Lu

Well, actually, seller, kind a of for for is this support the country onsemi It’s strategy. win-win site. both the good actually

The the while, product important take period, product to for and way, even takes deduce longer. that process fab, develop product the that is helping And it time that us qualify including to the qualify into can or the the capacity and it the cost. one for a we year and production, takes us to we sales during that support reach

so – slowdown they we to up is we or able at they a should pick when we their loading, the this win-win. And believe same when loading can time. And be deduce the

our majority growth of important number. quarter revenue And and guidance, all, if revenue quarter its that coming still from of are XXth announced key So result small the or amount, it’s the But for revenue very – – how you we thing It’s can – not functioning talking not percent continue the we of business and record much, show it’s and look growth organic tell not almost we organic. material. disclosed The you from will X% we be at if are third about the that’s the growth. there. our executive you’re one

William Stein

Yes. Thank you.

Operator

comes David Benchmark. question Williams next with from Your

open. line Your now is

David Williams

you good real background here. making Apologize ask the us supply how let now maybe very better But noise much. into wanted see thanks little market. time? automotive Hey, to – and that you maybe the a just Appreciation, you’re question. over quickly, for do trending so progress side, Tell I on – the ask that on have me

think curious you Just of kind growth how trajectory? about that

Emily Yang

is consistently you QX I XXXX our our think, right, track it’s compounded growth record, Well, XXXX, at been look XX%. And we’ve annual year-over-year result, growing. the rate XX% From David, actually with growth. just if to

and in strategic continue. pretty that projection the with expanding of we’re pipeline will all demand growth this engagement the the with creation of area So the confident all customers, that

David Williams

I’m I Great. shorter-term of dramatic realize what this Thanks saw we potentially so near-term be a And how in capacity view, But guys impact think the maybe coming significant And and about better. but online? think kind the Thank impact would pullback the realizing maybe and more see you the macro. the wondering capacities margins you you do some a just we margin if slowdown if of of navigating about in macro, much are is did in this a you. this much. how

Emily Yang

Yes.

that So question. let me answer

to a benefit. So past focus few improvement, mix that Diodes opportunity actually been quarters, product about taking but if have always we we price back we the relationship longer-term for We talk look the emphasizing So some has really the adjustment, have we’ve been our the our right? focus. expand did engagement is about with customers, so

last few go to approach, for quarters down continue that this the path. and result we’ll the with with So

our improve. will confident margin pretty we’re to So continue that

QX guidance. to you XX.X% right? on as We Just continue based the guidance, a a guide actually higher see, can

to we our been side. we manufacturing vision from focus, drive believe always improvement I mix past, the was – that’s our continue we’ll as think to is So the drive continue Meantime, has product key will improvement correct and the from margin that the direction message and efficiency well. direction and

Keh-Shew Lu

– we talking area, to get margins. you you’re change – one margin. talking the if can automotive, about mix, and margin higher our see computing show that XC One the those in been to you, when and our industrial. right, thing automotive you Well, and product automotive are out except revenue than industrial. higher of end then, growth already can computing because are emphasized on the of when much to we they of and product high they when communication, consumer, those we continue In I’ve so segments, automotive Emily XX% focus we when then improve about mix, on we focus evidence more And continue of out industrial,

David Williams

Thanks, again.

Operator

with comes next question from Cowen. Matt Your Ramsay

Your now is line open.

Matt Ramsay

much questions. very my you taking for Thank

talk have that can you about your where have that lot a the that of not to maybe hadn’t how before is, things able I And get how was and customers guys what into did guess, into broke developed to the it this those those a one that of would If because with end you and in customers. had new qualified since a land-and-expand get conversations you doing couple on had when guys We’ve The company is the want number going markets better how you. sort of point Diodes win of business maybe you break in additional things is last be specific if able many of few you about such great. guess I happen, of how different I new understand instances are could to into got ample a years Thank to And characterize the able of supply. kind that you view? you relationships design are been customers? did really first bring your any going, consequences have over competitors And the was are question of broadly supply supply and examples. and tight pandemic. of Emily, that when during things how of

Emily Yang

Yes.

and well So I continue. is going things think

dollar we For seeing of overall continue We actually the the account. the to some customers, actually to into break We’re continues, within our account. momentum the expand got right? opportunity content same

like mentioned, demand. a strong shows we I and demand. supply still think, There’s like of So right, areas still some that imbalance automotive really still there’s

the to a filler grow Diodes, only. continue interested are to So relationship. we not gap we definitely be

like customers that. work say with we and is very, commitments a strong. would stuff of the very agreements I momentum still long-term lot with So and

Matt Ramsay

Right. Got it. you. Thank

it changes company, just of go each the commentary any should for quarter, expect your surprised if really some I’m specific about trajectory trends quarter-over-quarter yet, would in the markets wasn’t more but into be how to follow-up, given of the segments third had end of you guys my growth rates. very you we As in helpful. just That Thank much. the really, asked

Emily Yang

Okay.

me well. let question answer this So as

a already, So seeing lot automotive, this of still I mentioned we’re overall. strength

drive. to again, seeing continue of focus we’re So lot we a Industrial, strength. and there

can inventory see some more depleted in like and channel hoping the stabilized chipset some some think seeing also soon. There’s that up the the we of new computing, launch So upside. of we’re a in coming I that of we’re when the

of the within also on the on depends So so demand. customer we I But major that and area, the focus. to the Consumer, application segment. think will It continue consumer actual IoT we a again, very drive momentum varies in block this focus some it’s little.

communication, smartphone two other I or showing Asia think have momentum. slowdown, and vendors in in smartphone strong also but still China one region we’re seeing some

to really do a on I said, like we areas we drive mix Like want and the Lu focus. it’s that the to have things right, mentioned, Dr. very and to continue because So focus I shift can think quickly we capacity match.

five for. I that think overall that’s definitely a think very you segments the about much key Diodes So I asked right? to pretty advantage that’s approach,

Keh-Shew Lu

backlog Yes. for about But the Emily talking Diodes, to when key thing still our just very remember, strong.

very still strong. is demand Our

So yes, we see pockets of the slowdown…

Emily Yang

adjustments. Or

Keh-Shew Lu

is really, X% – And growth. of going But very the guidance, adjustments, demand it’s or guide, believe that’s inventory our have still we’re adjustment. on we’re strength confident this we market we to the there. overall, and very, our still reason still

Matt Ramsay

you Thank you. answer. appreciate it. the for Thank I both

Operator

turn call There Dr. questions at the you. I over to are Lu, back this further no time.

Keh-Shew Lu

Thank you for Okay. participation your call. today’s on

disconnect. You may now

Diodes (DIOD) 6 Aug 222022 Q2 Earnings call transcript