DIOD - Earnings call 3 2023 | Diodes Incorporated

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

Operator

Good afternoon, and welcome to Diodes Incorporated Third Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-on 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, November 8, 2023.I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.

Leanne Sievers

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

Keh-Shew today they and Vice Whitmire, us finalizing to Sales and Gary from are our the Chief Lu, Director registered Dr. Yu, announced Diodes Officer, Chief quarterly preliminary Yang as results Officer, its President Marketing, of Joining by of Financial Operating listeners Investor Emily today Chairman, Taiwan company and the CEO procedures the Gurmeet Brett are that President and Worldwide remind company's to Dhaliwal.I'd public customary like review accounting closing subject are independent firm. Relations,

the except estimates extent as may forms a future, including today to to fiscal XX-K claims prepared results we to risks subject discussed by conditions represent to today harbor as management statements and such filings management's and statements obligation revision securities form company in the change, subject until quarter results statements update remarks company's law. Therefore in the and Diodes required which Actual may XX future are and company's act response addition, from may and those litigation in no safe not the uncertainties uncertainties its the or the differ its the questions. of applicable X, ending addition, private reform XXXX.In company additional projections contain unaudited performance of Commission make of for November discussion is protection refer XX-Q.In As more September XXXX. these these forward-looking assumes contained market projections you XXXX. therefore of your to management's the and to may detailed in files risks that Securities and to as the forward-looking for are forward-looking the with Exchange any XX-X the

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

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

Keh-Shew Lu

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

earlier, quarter weaker announced today our customer computing, overall than demand and Asian communication the expected market. in reflected markets, results as As the as well third end consumer

not target XX%. automotive recovery record automotive revenue, XX% of commodity above a and XX% Our the revenue our revenue industrial remained revenue the third quarter quarter.However, product did of and market being contributing our of our model original assumption in throughout materialize at of a to

Diodes' on to remain we the gross well that our environment business for let profit.With return turn current insights of term. as to positioned our additional growth, the challenges believe, we in me Although, near billion strive for over presented goal a in $X Operating continue for quarter. it to I next Officer some Gary, toward Chief

Gary Yu

weaker Asia was $XXX.X in especially, demand million, Thank the reflecting XG you, XX.X% expected Dr. Dr. Lu Lu. Revenue than the a in in decrease mentioned. the quarter as market

throughout inventory, channel levels. a global Although, did our support significant original in continued reduction demand a quarter, not inventory guidance decrease in the contemplates these

R&D for in previous in the the In the waiver build technology primarily of design our more to softness the well developing our with typical quarter continue of the conjunction our expanded across we market capability, signs manufacturing reduction acquired we all the I there those automotive as industrial, some to further efforts, in steps do steps is fourth industrial market, now to those in to to slowdown me is in further we in contributing XG than customer past general want us will which initiatives, for demand as over computing enabled savings distributor call as related our so over focused new recovery market. outlook year-end to management, we detail. especially, have service of also delayed the as to operations.These addition lower years cost have consistently to wins our long-term invest is increasing see inventory mix a that the process are demand the represent also to products That and This in increase agreements. in well inventory seasonality.Although to our is and areas the targeting to markets.Additionally, product quarter much In to despite discuss recovery broad-based quarter to and enhancement years, areas fourth the which begun beginning slow, have the results to show we remain where globally are automotive guidance our in turn we the on more financial Brett, in the probability and taken said, come.Let actions, as improvement for the adjustment, dynamics, several growth and market. certain continue to the reiterate continue deliver third the weaker preparation

Brett Whitmire

operating million of or increased which XX.X% were million asset to per the to restructuring $X $XX.X adjusted third prior XX.X% third quarter or $X.X expected $XX.X quarter compares down expenses XX.X gain the was XX.X% This GAAP and intangible third in the have used the quarter and to quarter. or million of million the diluted tax tax net $XXX.X and million $XXX.X approximately of of and million, was with compared third on interest diluted third count million approximately to million interest or XX.X% intangible third income and the expense compares or share third higher the share $X.X was in impact million $X.X third of share and for in $XXX.X compute or million revenue, revenue million the expenses was a service $XX.X to third the of operating the quarter to third in in income, year $XX to non-gap the GAAP $XXX.X gain in million of the million million the on restructuring a the Gary, quarter acquisition per earnings Revenue excluded of the $XXX.X net was in XXXX per XXXX per combined diluted excludes $X.X $XXX quarter $X.XX the third afternoon, rate operating everyone. revenue. of agreements in prior share million $XXX.X previous of million EPS waiver good the XXXX. Thanks taxes, XXXX revenue, shares.Non-GAAP of third prior or of the our for GAAP quarter the XX.X% quarter.Turning related currency was $XX.X share.EBITDA $X.X million $X.XX $X.X $XXX.X were of million second the for million income, in the revenue quarter or would for costs diluted million non-GAAP third share, and income costs million million from million diluted to amounted effective prior $X.X quarter second million a income for quarter or for non-cash in million acquisition-related quarter quarter quarter million XX.X%. profit prior of of to investment. of net and to revenue of in of in expenses share share, net and revenue of facility investments, compared due costs. excluding expenses This for other revenue, of the underutilization asset non-controlling quarter in million quarter quarter.This or basis or the or of foreign per due compares or our quarter $X.X Non-GAAP and XXXX. an $X.XX gain compensation in quarter or for diluted XXXX or revenue in tax a both and or XX.X% quarter in share the on demand XX.X% $XX.X $XXX.X consisting $XX.X million from gap in interest Gross $XX.X third for quarter for The than were the in $XX.X taxes $X.XX million from other $X.X XXXX and and million XX.X% by and compared of was year XX.X% in XXXX, the $XXX million $XXX.X XX.X% equity prior $X.X of quarter million XXXX amortization $X.XX income EPS $XXX.X revenue.Total adjusted revenue $X.X softer XX.X% XX.X% million, quarter quarter share-based the was quarter $X.XX $XXX.X million of to the third million for $XX.X% amortization, unrealized income expense.Income $X.X and or per million XXXX per of quarter $XXX diluted which XXXX. the gap prior diluted

third of of which including cash end negative total reconciliation of and income cash million at quarter. $XXX flow from Working for capital the a Free provides plus GAAP details.Cash was release, cash, income debt.Turning investments $XX totaled down approximately earnings $XX.X and of net generated net million included the sheet, for expenditures. flow our balance $XX.X Net was was pay in cash and capital to to additional $XXX net to GAAP million million, included debt million have adjusted short-term million. including $XX.X total income $XX.X cash was EBITDA, million the short-term a restricted million. which the was We the third flow $XX.X long-term equivalents, non-GAAP quarter operations

X% of approximately or target XXXX X%. the to $X.X expenditures third increased for minus a at and which is plus quarter were to of at as in work $XXX of outlook, XXX, in expect third the $XX.X Total compared the an raw from XX, XX, prior total increase quarter a of million inventory million.Total approximately $XX inventory $XX.X materials, million quarter. million terms inventory $X.X consisted finished were approximately In in X.X% of revenue million to the on model our last to of inventory, quarter in for revenue million we dollars were our quarter the end or in increase goods basis days the $XXX.X last Capital a quarter process. cash end fourth turning to to days of goods million X%.Now be XXX, quarter.Finished high inventory the decrease compared

Industrial We the mix, less to the a minus plus revenue plus assets gross or of revenue.Non-GAAP to margin combined XX% to interest expect primarily favorable for minus GAAP lower from are adjusted contribution amortization to operating which operating GAAP expenses, expect costs approximately reduction be are $X expected product of expected on X%, on be be acquisition-related underutilization with due XX.X% intangible Automotive approximately of and income expenses higher or X%.We net revenue million.

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

Emily Yang

Brett you, good afternoon. Thank and

As the quarter our third mentioned, and original was revenue down XX.X% below Liu and sequentially Dr. in Gary estimates.

global the channel POS remained above increase in our assumption global happen.Our the XX%. of recovery inventory represented the quarter third Asia XX did quarter, in and quarter XX market relatively our Our the in and stable at weeks. the the revenue, quarter.Looking defined XX% automotive The slightly, North range remained of normal decrease Europe during America not XX% market of to sales

remained combined our the points AI terms five our is at XX% compared quarter. the a percentage Server detail. improvement especially product target.Now product quarter XX% of of still end-market driven improved Diodes represented consecutive In low, in revenue with during in last increase.Consumer which XX%, revenue is points above communication In of end-market review the demand and record three in end-market market computing remained by relatively XX% XX% to industrial of the revenue represented with product Asia the smartphone revenue.Automotive of above and industrial quarter.Our was the demand demand end quarter XX% let XXXX automotive percentage stable XX% me greater sixth and automotive third most

momentum.During win Management in infotainment content our expanding applications. and our quarter new the automotive included extending on Battery low by modified products focus for various voltage Automotive to System, Wi-Fi continue applications product compliance we We design telecommunications XXX introduced which

We're control expansion continue well battery for touch information, PCI for infotainment to units, protecting We content in wide control also telematic increasing As a range power ideal control automotive panel the and transmission ADAS management applications. sensor compliance devices generators as radar seeing X charging auto operating wings from Gen a units, the in strong demand increase demand crystal of for infotainment infotainment and TVS ADAS continues dramatically. is have power series driving controllers data, of market the diode managing and as to introduced systems. in Express design oscillators domain protection clock systems systems.Automotive station EVs products and line and voltage ideal with

camera C power inventory quarter. combined MUX re-drivers of rebalancing content alternative growth Despite X.X seeing USB-C market share in rear monitor and begin re-drivers cross-box and to for drive SBR Ethernet entertainment, USB cockpit, with remains see the diodes our to our display and year-end growth. momentum during in wings industrial design for volt weakness wing in market re-drivers different products positives solar gain alternative ADAS our mix introduction in were HDMI applications Schottky highlight signal industrial to and port improvement surfers growth the USB systems. time.To and the delivery HDMI in commercial product USB-C equipment top camera furthering USB over we expanding secure the and MUX video and system.Silicon and focus in-vehicle adoption automotive adapters expansion power product also type controls the inventory correction adopted for margin continued re-drivers weakness, more general type We're infotainment panel materialize product over MIPI carbide to display duplicators controllers a and market our and in systems.In new few including also expected C and momentum seat solutions future while quarter, gain team market a traction on displays The switches switches remain protocol increased while factor fourth medical We saw with focused port and our support pronounced distributor industrial continue applications. [indiscernible] MUXes for our power design re-drivers industrial smart

wins alarm, market power drivers to of regulators security secure household some handheld computing voltage tools alarm in smoke we're recovery and the PSO We adjustment, for demand. alarms.In in and design also And LED of fan continue our dashboard high in quarters server drivers strength particular many AI to inventory the our designs with applications. linear in after sound seeing continue win aftermarket signs new

for and for including display products in USB-C, docking re-drivers port station per add-in momentum the We a computing of USBX Type-C including docking recovery adoption station gaming, in our MUX signal and computing There product card data sensors gigabit protocols HDMI, channel XX increased USB-C with in integrity first design. also per year USB-C expect building applications.We're protection adoption switches notebook, long to MIPI are cases and was source protection our of sequentially further platform also re-drivers workstations, revenue gigabit voltage in market.Our power desktop voltage USBX in of connectivity notebook, line in and seeing display POS second applications. and market applications port increase the USB and XX low generation with together low pulse TVS next re-timers second half next in MOSFETs ohmic re-drivers the desktop, switches, and this

while transceiver computing, our splitters continue design-in design focused markets, driving servers. especially been our foundation headphones data SBR headsets, improve our serviceability.Also initiative audio our And expansion server GenX packet automotive end momentum seamless to to This to the of high-speed are from industry. gain secure being were for saw digestion we summary, into wins and family, our new smart VR LDO contact timing and low-voltage momentum and GenX omnipolar our the and Design for although MUXes our data products for the return passive applications. products and solid in support connectivity HDMI and our us well and while the TV, we believe questions. areas tracker floor continues inventory remained product future.With drivers in line demand and and in switches protection traction system certain keyboard, camera applications and design clock and sound home team the timing modules.Our saw CPU PSO optical and remains focus Hall NIC increased our Operator? Our monitor, enabling impacted has monitoring serve Express the to cloud gain and to server clock also low-voltage across system LED active on and gain, global drivers market, monitors introduction, by past applications. LDOs new we momentum buffers for margin increased MUX generators amplifier products endpoints demand the our with design-win appliance the adoption now multiple oscillators a that environment also expansion display-poor share In card video, design open applications mouses.In re-drivers weak growth for are in demand by continue buffers we market in to availability MOSFETs and position strategic momentum and communication PCI also cross-domain and I-O to in including products storage designed wins crystal AI for and and reliability, for bridge PCI earbug the cover latch X.X to centers TVS building the rectifier, in camera, wireless home Hall Express in consumer gain new switches and smartphone.Lastly, wins market, continue protection, in sensors smart

Operator

Thank you.

question-and-answer the [Operator To begin a ask session. now will Instructions]. question We

If If and our you're this we speakerphone, been [Operator has time, you will using assemble at your withdraw Instructions].Â questionÂ [Operator a you any would time, roster. Instructions]. At answered to to like momentarily question pause

first Our Securities. comes question Stein from with Truist William

William Stein

similar The analog last There of you're micros. quarters companies very a -- the from down don't is XX a dividend? first cash for I that diversified are down peak. end capital have to last several consistent or and but a strategy. would And about allocation a to Many eight What say, acknowledge the you've balance. the free you I them used with buyback let's lot debt diversified of net have you your products. going of is resume pay generator and cash Stock company is continue think quarters, companies, a markets, flow broad to few take maybe the to establishing now it a consider perhaps. you see lot

Brett Whitmire

Yes.

this is Brett. Will, So

I key back we've we of part key as our -- that capital essentially we've as think done. do growth, about a talked part we that before, is A Investment that we've in growth. that looking M&A. business at is the and view -- of in strategy driving investing

we've we've openly our -- about talked talked think I history.

programs. bought program, we a some had Semiconductor, [Lino] and We then stock had a Back have we in XXXX, buyback it buyback. was

continue now continue we we generation. to our to use Yes, look something it, the cash as absolutely. that's of we that confident continue at table From and but we right just consider that. continue to We the on growth cash a contemplate not our dividend be perspective, of to view best

William Stein

Okay.

address I'm quarter of hoping can follow-up, about sort outlook. question and a the combined As you the

a then in didn't. isn't didn't strong, my of you release recovery talked recall perhaps also the about just that QX my that notes I on call, recollection guided the press but all being the -- to recovery. commentary that happen and don't in think I expected a I for you

recovery And start to talk about you so refresh what think were to about returning and you we thinking And materialize? maybe out didn't forward, just my memory, then settle expecting going when you things growth. can when that maybe recover can start revenue and

Emily Yang

Yes.

is So Emily. William, this

overall The of we each assumptions actually is based for I and the call, the say, guidance market customers, guidance, right? some I of think lot would segment on during situation. provided a the the earnings QX of

situation. the So result. to right, that still end what we assumptions recovery feel looking in actually some beginning certain realize, like assume versus of the of the did we compare quarter should the of we and improve back, the channel because inventory areas that assumed We didn't

want make that automotive be the So refers to demand didn't want company, industrial with we really that's us based as time. is assumption, help unfortunately, by we products I build are the drive to as This the that's extremely question. really play, with well a So range, more So short that sure the the term. in do contract really on we product I time confident I will to think the cannot new this situation But be expansion quarter, manufacturing in drive second unpredictable during dynamic. think the us moment, things the the the I there, And on revenue those what assumptions. is market efficiency, right, continue And to focus normal we improvement. to to adjustment the we this is includes should to our certain really back really think is that focus the which same margin as predict really working your market. think assure materialize areas mix control there will at past, I business over and right? important to market things like said, success on introducing improvement when the continue question right continue as well or really we're really improvement all It's right? back on hard really the at we think in So But as inventory decrease right?

Keh-Shew Lu

as we this and we continue in focus target Lu. focus in money And spend my I on product. $X of technology, vision new new our -- Dr. R&D, profit. is is will speech, new gross still process of R&D And This mentioned on billion

need us, inventory to long adjustment, term. we yes, inventory or not. have for term, short still focus This so but is some And on problem

Operator

comes with question David from Williams Benchmark. next Our

David Williams

your firstly out and just some the maybe where puts seems of been here, automotive help wondering the you bad. -- us commentary takes just -- the EV, you're where it ISO good just traditional weakness like guess and kind whether me, of that'sÂ ISO anything it's of that or helps if mixed kind segment or particular on and the and whether excuse weakness But there's the of kind commentary around could automotive, I where us from square helpful. exposures are in of particularly the some would coming terms seeing of understand be geographies

Emily Yang

Yes.

So David, this is Emily.

I think right? overall be down in the program we And expect general, well the increase, automotive the market customer we level. part bit others. situation as do see, little So be a different inventory segment number the to as in Each different that some rebalancing. each inventory can can level from

by seeing the general, So area distributors. I control of some to, quarter-end right? coupled So demand inventory everything unfortunately, as also But with we're adjustment inventory and of with mentioned not the equal. result as well, in also of rebalancing certain a this

automotive really accounts, weakness and the kind out to it of right? really difficult of be view, is in expect especially point we that's with short And to the strategic region. from global the term. from think market. compounded But it's general, of going So America in North under challenge more we've really really the I a specific believe we to regional that point area also do bit So automotive, for little Europe approach, a a it's seen

what really see. we that's So

Keh-Shew Lu

still of look XX% we're the you -- record the if revenue. of able accomplish at to And

content the growing we to same of still time, still at automotive our So improve the continue automotive. continue our

focused success the we that's and for increase on, So I effort still think the -- continue we are content. to

Emily Yang

Yes.

product actually other So the actually quarter compliance is XXX or and XX second I Q. in automotive I believe quarter think XXX introduced we I third mentioned number. just previous XX is

actually market be introduction you as [sand a to the well focus. the can for driving TAM] as new on expanding overall area getting focus see and So company will our new into the continue product

David Williams

the [Indiscernible]That part going quarter? of WC into fourth

Brett Whitmire

you repeat repeat that? your question? on can that you question. up broke You Could David, really

David Williams

impact was that the the any Was on guys apologies. strike, my quarter? to Yes, UAW fourth you

Emily Yang

big mean I indirect it's Yes. but impact. a definitely I think there's impact, relatively, not

David Williams

is is volume? then would have lastly And Okay. any Can than me and down just maybe an part margin and it side also of helpful. thought, All is the this having would us is give the we agreement takes Or And color kind the that's the just there there but service margin. you puts on pretty further on be gross just guidance of impact? right. some for

Emily Yang

Yes.

overall, I we the bit. mix about change a the little think So look right, when talked at product margin, I

a look reason you If at under situation right? to mainly, due But percentage, the industrial the actually realization. is definitely underloading auto decreased little,

overcome. different a challenge in that revenue, I Of well mean course, as reasons, that that's is it coupled is long-term right? right, again, with but short-term the of -- think we right? will as part this decrease believe service is agreement, agreement I the So the the things the really we

also long-term as term, improvement. that as revenue we the confident well introducing improvement, the the talking are focus, new drive product continue in products. as about we'll industrial as to margin longer mix improvement think And I well the the

Gary Yu

our more And unloading here. But the to line would stuff see nothing in Right. and to bank service what process control basically, to and agreement really And this is on think really and And loading control demand, here. comment is for our loading can put there's some all we customer the like that worker wafer Gary. resolve we I in process the year we're ago. future the at really loading on you're that surely we a like focus that's that acquired the these technology situation going to we things way. the and a two our okay, want

Operator

Fargo Gary with from Mobley question Wells Securities. next The comes

Gary Mobley

year you time hope this Appreciate early I everyone. you're surviving going wake Hi, Taiwan. the up. morning in

the to sort seasonal and maybe most start sure has drain might even So can the people's not take maybe considering the probably go the minds the going you're of give during year a patterns maybe to -- some inventory patterns different to of see seasonal that or you atypical year us place. might what's fold sense there, is but that of I'm XXXX you if exaggerated looks, on how

Emily Yang

Yes.

think I that's we're I think, map, market hopeful seasonality as a going to is hard readjustment over. to going general, think I bit be right? a looking So Gary, anymore, the in well at right? as put on, dynamics XXXX, picture the over market inventory it with is the situation demand still Just it's little that

to that's the that the to to So that's since more get important the short we a road, want focus can So think down Diodes' see. short-term going to term, be right? right, things on successful be Again, issue. really still we what continue we

is challenge half and front of us. I in think visibility definitely first

half So for a second we're improvement. definitely hoping

Gary Mobley

Okay.

I would your the trying to in just competitors macro So that assume load, manufacturing environment. your maximize you're soft are like

And so little up how product for a in maybe on all nooks of point the related pricing a is like-for-like through at types and basis, business that, crannies are that looking this to given people time? holding

Emily Yang

Yes.

pressure still unique and the really of But coming with in think I price overall still supply, de-commodity differentiated shift demand that in price always what When right, is a little supply, bit and So the we're the bit advanced general, product is seeing, and little better. from majority demand area, a is right? weak by dynamic. definitely the or driven some more much there's

talking is been we've about. which So based new nothing this, again, right, on that

the back So focus years will right? products, on is the focusing direction new that and new last for company. to referred we'll So been the right, that the for focus product improvement already, mix be which have overall continue of differentiated continue to the number initiative to we

Gary Mobley

I more one If sneak in. just could Yes.

Gary Yu

down we're put that can comment that up. other in way. to would control and [transaction] that on And I than really like again, tragedies facing that is cost some we efficiency the

issue So [Indiscernible] kind pressure front of market. savings of that take price to initiative and from price the advantage activity we can those

Gary Mobley

one if Brett, I Okay. in. can sneak

structural sequentially. OpEx You're is variable bonus to roughly your Is lower $XX million other permanent? it and guiding decrease Or essentially that anything just or some items? accruals

Brett Whitmire

Yes.

various actions you also So trend, actions basically, to that. through as across -- bring as you -- we're ago, doing back restructuring work see when we some you tighten of some the get to and as we of start spend the during could consolidated work on we're belt look forward continue position cycle our $XXX to to we were grow right go taking, enable we that. to going taking a we with this were to on see you'll continue third revenue you better and our see you I things of our and to quarter we we the stay and we're and going we're as back to We're can the hitting year line think in stronger and think to be employee at about stronger took of you be we -- charges some -- then million, a the ourselves year, in that see have stuff trend drive this in look kind some into when focused And to continue as cycle if forward, model. top

Operator

Our Gerra next from question Tristan Baird. comes with

Tyler Bomba

This is Tyler Bomba Tristan. on for

the year? next for You you some near-term maybe your Could expectations talk into dynamics of pricing on are pricing. touched on about what

Emily Yang

Yes.

pricing different There is are And bit we think versus competitors I categories. I facing. little be different think, dynamic, other. can are each the Tristan, of product right? that the area There's a So different

market end the also think key a factor. I

I price auto So expansion the volume in manufacturing with So with introduction And focus long-term industrial. can in computing content in consumer what tighter right, general, and believe the pressure with weather general, think coming that's the the and together the the new in area general, and of you see because see overall with maybe to on the So pressure right? this I margin right? think in market. of price us further from more help the efficiency we demand more driven, we product the from the improvement,

Tyler Bomba

does was you this when And underutilization where charges? then last time had tell in at reported, just quarter current about you the that that before what Great. that cycle? And the we're us

Gary Yu

okay? year. wafer the -- too and of for in I avoid to But in moment Actually, quarter. a that emphasize realization driving Yes. what we again, not about in clients particular we of situation third cannot kind so at information see we demand can utilization that that our again the like and the much question really here, we to it And to to load the but do bet can up happening do, product are client, we analysis is kind control the this try then that our our we continue previous that qualification process we here, those disclose happening

Keh-Shew Lu

Well, underloading and we I if aspects. underloaded One to own two is underloaded putting the we okay, unloaded, up the due a effect, on or direction. due program best looking have you from doing are the for service okay? the agreement, that's then operation, do we at the are separate need what that our service to -- to product our acquisition when one continually technology And is -- speed So agreement.

The then other is the our own direction and manufacturing capacity due on we due down expectation. the loadings, slow underloading all to

-- be that's mentioned down chocking for solution was was manufacturing and see our price just can capability drop because CapEx. the and we capacity So the -- you That's And and product. you okay? I mix is think the cut or CapEx product new but time, important at reduced. try reduced. the loading, the the the way not to Bret good tension slowdown same at That may a price why if most extension -- why market gain the cannot So that's more

on we the long-term for and product to focus is for market. new you it if But to term So can mix, get maybe solve independent then direction, win do to strategic -- don't the need stretch, we products this short what it.

people. if easily So other to automotive, differentiated or product lose the be you're it depress tech to cannot and going

more price be of focused industrial, capacity So this new our okay? we will utilization are thing So solution. due dosing would differentiated product, the customer the the strategically the is product, shields, due on the good whole issues. direction be type demand, the resolve capacity the By productsÂ to more is a dropping not Great... more automotive, to to not

no questions, concludes our this As session. we further question-and-answer have

Operator

closing I conference Dr. would to the for over to any remarks. Lu back turn like

Keh-Shew Lu

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

Operator

today's for Thank now The has presentation. concluded. attending you conference

disconnect. all may You now

Diodes (DIOD) 8 Nov 232023 Q3 Earnings call transcript