DIOD - Earnings call transcript Q2 2024

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

Operator

Good afternoon, and welcome to the Diodes Incorporated Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] And as a reminder, this conference call is being recorded today, Thursday, August 8, 2024. I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.

Leanne Sievers

Good afternoon, and welcome to Diodes second quarter fiscal 2024 financial results conference call. I'm Leanne Sievers, President of Shelton Group, Diodes' Investor Relations firm.

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

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

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

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

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

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

Gary Yu

this everyone. today. Thank conference call joining for you Welcome,

earlier computing results the exceeded our recover market As from Asia. second demand as low quarter, in today, began reported in sales we especially expectations quarter the the in prior point first to

Diodes in indicators prominent was weeks. Demand included inventory positive quarter levels, the a in the improvement computing decrease Additional improvement in of inventory in most distributor growth AI participating with is during increasingly market, where servers. our sequential end channel

POS fact, revenue increased and significantly both In even across due was to able XX% to automotive of product inventory the due remains the recovery the to quarter, though XC increases low over Diodes that ongoing at markets, total, maintain market the adjustments. content prior the in and industrial

As to growth second strong at for are growth X% of POS than the we look the the revenue guiding quarter. supported of third overall midpoint, we in more by X% quarter, over

well as continues growth our agreements, Our demand. to near-term related reflect underloading waiver our as for to margin factory service internal expectation

However, we markets. end improves and XX% target toward market with expect combined of our of automotive industrial in to expansion model continue the growth as resumption loading

to to our as turn the deliver global discuss now over operational me results we flow. With well on as strengthens, third further and in quarter detail. guidance Brett financial As focused quarter demand our driving cash let second remain improvements earnings that, call more increased to

Brett Whitmire

our wafer This million of second and revenue. and of operating profit million of $XXX.X gains compared $XXX.X manufacturing $X.X in quarter XX.X% which consisting were quarter, the million, of in Non-GAAP of officer of for retirement. quarter, $X.X $XX.X the year in quarter was million revenue. Total quarter million underloading Thanks, $XX.X XXXX. quarter approximately prior were income, or million XX% expenses on income, and $X.X prior million a million XXXX to to $XX.X million $XXX.X the $X.X good factory million, in excludes $XXX.X prior demand. $XX.X non-GAAP and as the interest compares investments, revenue, quarter, from million, to of the XX.X% second year million $XX.X expenses of XX.X% the other first or million, in the quarter the the the $XXX XXXX income or $X.X as million, to $X.X amounted million, basis revenue, of in of to Income acquisition-related XX.X% taxes our $XXX.X million, in This intangible expense. quarter. million expenses, XX.X% $X.X other in compares quarter an previous second restructuring operating quarter of or and quarter non-controlling million, the the interest was currency second service revenue million the for revenue, GAAP of in and $X.X compared of XXXX second afternoon, for asset in at gain, before amortization for internal and revenue $X.X quarter was and everyone. were agreements, unrealized the $XXX.X million revenue, in Gary, of of of reflects XXXX, Gross well $XXX XX% foreign of $XX.X or quarter. GAAP or to million million prior interest prior for of of which operating in Revenue million facilities expenses and or related or second charge, XX.X%

This per $XX second net approximately million tax million of in excluded compute value which $X diluted per net was million, taxes, per or million quarter share $X.XX second Share EPS tax rate the diluted in in income investment shares. Non-GAAP quarter, quarter. diluted income and prior count used XX.X the diluted second in $XX.X million the million year per quarter to acquisition-related second compares share to per $XX $XX quarter, officer per $X.X and the in non-cash retirement. or last our income or $X.XX GAAP $X.X or costs, the $X.XX quarter share diluted was quarter Turning effective $X.XX in adjusted million million $X.XX XXXX. charges, prior diluted share, in net million or or of asset share compared for intangible GAAP was XX.X%. $X.X million quarter for income share, the was second restructuring and the in adjustment, $XX.X million, $X.XX mark-to-market diluted $X.X to to

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

$XX.X debt. including net second was net cash provided We a our non-GAAP reconciliation a of net $X.X GAAP down and have for Free million, quarter. cash by of provides million, flow total $XX.X Net for negative the income which negative adjusted $X.X to million operations which earnings release income GAAP flow million Cash a income, EBITDA, million details. pay was included capital was of flow to the in $XX.X included expenditures. additional

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

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

outlook. Now turning to our

or be which X%. revenue to of be X.X% intangible For the minus expenses XXXX, GAAP the which the minus X%. in approximately expect is sequential growth third are GAAP $XXX expected sequential operating are midpoint, highest plus XX.X% at an quarters. quarter representing increase X%, is of million, last we adjusted to amortization the approximately plus margin minus XX%, be acquisition-related expenses, to or of plus operating expected assets, or Non-GAAP for gross revenue, XX

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

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

Emily Yang

and and Brett, the in afternoon. X.X% the was Revenue than quarter you, midpoint our increased of guidance. Thank higher second good sequentially,

our quarter, POS Our increased global and distributor the more inventory X% than decreased. in

we mentioned, excited backlog Gary improvement quarter, into the in and see ratio, demand As are the especially continuous book-to-bill beginning Asia. stronger third with going in to

Asia America Looking of revenue, and in XX%, quarter, the at X%. second represented XX% sales the global North Europe

was Diodes of and revenue. computing our communications XX%, XX%, the of terms In XX% consumer product revenue, XX% end markets, of industrial product XX%, automotive

markets This target slightly XX%. consecutive on quarter above end percentage our to is Our on basis. the ninth total is automotive the the combined of but which last dollar the XX%, industrial basis, higher quarter comparable model

revenue end was was greater sequential the will which detail. of basis, the third Inventory Now extend let markets X.X% but to market, XX% in quarter, second review expect the percentage our total last me continued and product revenue. flat rebalancing into this revenue, quarter. automotive the in we Starting the with quarter on product in increase

customers' also more a we of some to healthier is new second half so into recovery with the However, throughout ramp, expect year. and starting we levels, programs getting are inventory the gradual some stabilized, demand seeing

remains including converters, our driving, quarter, all electrification. From telematic, Our receive and strong and across lighting throughout and a perspective, focus demand wins product expanding infotainment, product from supply, ins family, charging, transistors, areas, buck safety, demand and DC-DC wireless the strong applications. comfort-style design LDO creation design with drivers momentum power gate connected

and We for PD EV also secure Type-C cars. design USB wins charging controls for video

gaining silicon and MOSFETs are also charging Schottky for systems. traction inductive Our carbide diodes

We the systems. transistors TVS SBR lighting fans, DC systems, from experience taillight, protection, ramping strong infotainment, for LED and and headlight during win our controllers display, sensor our management and and are are also and seeing diodes ADAS, in car in up momentum volume Also, applications. Diodes' linear continue our quarter, battery designs applications. products traction aftermarket to

along continue in buffers clocks, and USB ADAS, We automotive retimers, port opportunities Muxs and applications. cockpit switches, clock PCI see realty infotainment, crossbar [ to also ] entertainment, Express with USB smart active Type-C for display Type-C

dollar data line to flat represented the power with continued quarter Diodes backlighting, may IO, protection, introduction the of LED last Additionally, until auto slow multiple wins product, recovery products system smart in Similar total battery industrial cockpit, seat, slower power focus engine ESC car the applications. In new our XXX lighting market, the for was rebalancing management with the portfolio infotainment, inventory valve, market, also protection, demand of on the in growth control, XX% motors, and second fans up to of the on lift momentum automotive hot quarter brushless to continued this product which to including remains sensor end quarter year. expanding ADAS, revenue last basis. which covering than our motors. but cooling system, the window DC the quarter and applications, management, expected second compliance motor the due ongoing recovery, and

as seeing is pockets applications. in areas tools, surfer continue winning products energy a demand. power demand products bipolar industrial carbide which still market demand correction, are our growth factor silicon rectifier products, e-meter experiencing we being improving the gain air of progress we are applications. Also power condition, heating, for storage in market, well solar applications. our our while validation, soft, power including inverter overall power that number to LDO fans, supply transistors Schalke and are system, the Despite and medical also aerospace, like and the softness, are momentum And as gaining the into designed of solid across are saw in products, and traction the While in make

film stronger key number wins contact in the increased Diodes' Asia. secured battery design a and content of sequentially, our applications. In growing revenue in computing XX% area. is of the the panels, inspection also circuit automated inventory optical sensor AI market, healthy surfer inspection, approximately We image the signs product for computing printers, in printed in and A channel highlight market with boards, backlog

clock timing in projects, that power volume data are data AI PCI center to the to with designed units, clock and center to supply thermal PCI the and data additional translators, ICs, we along EMS our LSFO are rapid increasing DC bricks as we switch our products battery PCI MOSFETs X supporting AI expand, continues oscillators, has suppliers computing packet are and the Due into also AI also center in power discrete power as products named requirement Diodes' as run have that capacitor traction crystal share Tier solutions key As content as units. into solutions, our excited of as AI with well applications, X their logic, Express being that been seeing ecosystem. standard backup AI units, Express other also fan, power hybrid DC-DC a customer buffers, designed into switched management opportunities X started well including the Diodes to production. Recently, other Express Tier discrete applications.

been Express center build-out. of from Gen X has Gen of Diodes the X, PCI worldwide the X suppliers data clocks, industry benefiting As major infrastructure

both switches and from center data HDD the switches have SSD and SSD, storage solid in demand applications. power Our the in

TVS We computing strong gaming in adoption notebooks. winning DC thin been linear USB high-surge Also our cards being in has adapters, for the demand redrivers are notebook and DRAM rectifiers HDMI also fans, applications, the are redrivers, and while while GPU and are from adapted Schottky modules. Muxs, PCs, devices market, power designs redrivers seeing ESC laptops, and crossbar our desktop receiving protection of our for increased MIPI our

market. Turning to communication

returning the be the On healthy is and the even clean, the side, half this before In has to quarters due inventory into been last rate expect demand. inventory the likely slower-than-expected over the the market, to second demand, to smartphone levels. slow, may enterprise slower-than-expected will recovery though we coming depletion graduated due

in being data market, wings crystal in protection switches communication ultra-low oscillators and the our Diodes' and and devices center AI being jitter networking for gigabit applications, On modules are design optical designed are mobile the into MOSFETs similar battery management PC market, for market, adapted while to relatively the also applications. And our the application, phone in being clean. designed low-voltage lastly, the phone mobile are into is inventory consumer

in the demand to designs market as overall this of we ramp not we the will third expected, new some Although quarter. start was strong anticipate the as in

seeing demand power adjustable limits, switches, design of in boost controllers the in in traction solid TVs USB our and terms our and also portable converters as In large-screen LED We're momentum, current for point-of-sale as HDMI solid applications and well TVs saw monitors. machines devices.

when by low-power increasing design production in Additionally, as of comments our Express sports we and security PCI and are and clock cameras, expansion indicated questions. growth that, generators securing last recovers. With guidance the by and ramping design the now summary, sequential floor the LED the home positioned wins strengthening And smartwatches, strong combined with into our to cameras. represents encouraged open third In in especially we growth off increasing at the are Operator? as well Diodes. point demand low markets, margin in we we our today, midpoint we first Asia in X% which and revenue are of for over signs across momentum improving of quarter, and end in the our are the quarter, Coming for of the continuous highest our the guiding markets. market demand, the quarters increase XC for XX global

Operator

[Operator Instructions] Stein William question Securities. come today And first with will from our Truist

William Stein

guidance specifically that? the AI highlighted, The about. above compute right more either It the end to good for or to in interpret that way and especially certainly the the broad-based And better-than-seasonal Is the strongest as typical applications. to data what guide the quarter, that's or is are, I while majority sounds the sequentials is on ask wanted like than Congrats of guiding you're it in seasonal above center of revenue all market, and guidance. a that seasonality. that you

Emily Yang

Will, this is Emily.

Let me question. address the

First of all, thank you.

right? I the at quarter. ratio. is We at We So expect second based on very third book-to-bill and mention X% at, quarter did backlog. actually look think area the of came POS look couple guidance momentum similar the in into we beginning we look strong, we

with and is the computing, if of you Majority look same is the some communication, similar smartphone holiday growth because the if right? And usually of for for So based quarter. you specifically the server consumer, XQ production. the also area, driven peak consumer wings think the are right. But of pattern, you design time, assumptions, center by the data third especially area we I at AI of ramping look then, the under on X.X% bill. the up it all these reason follows the the on growth actually came that's guidance with at

William Stein

of And maybe of long expect a how channel quarter? terms And let's then, a, [indiscernible]. And level currently? to question no end us the it's that bit a more about it and where of offer inventory less in what Can of normalized you you at a be detail longer inventory. say, before maybe it's next is drag

Emily Yang

Yes, definitely.

I a have XX than also normal inventory. in to decrease defined it's have and we range terms higher all, channel weeks. a So our of And mentioned, right, first still growth, strong we of of POS XX

So we just the third inventory little is It dollar drive assume same the timeframe. inventory hand, hard focus for actually continue other the definitely But on to amount. and the the to continue POS the is bit to estimate want level. growth the quarter the a down to normal to channel

we and market channel giving more that's share. quick better also the gain really As us inventory short soon right? actually of customers, order weeks urgent kind inventory internal us our a this also dynamic where and we seeing or to channel higher or the bit start better order lot flexibility us order in as the to And serve right? of feel little like orders, significantly, inventory position for starts time, because POS situation, time or focus. At will our decrease same a the growing, change So market lead

William Stein

expedited The orders?

Emily Yang

said you of orders turning now market before, Yes, around. as seeing Sorry, a expedite than lead right? or pull-ins orders positive also start customer urgent from indicator of very view the also time the of short more expedite? we that we and lot a orders very So

Operator

Benchmark. Williams next our And David will with question from come

David Williams

other kind Congrats to the a that Emily, execution server, on and maybe yes, in orders are about particularly do here. of this the you maybe happening that near shipping the you're later and restrictions guess good consumption you that growth feel just before that -- like something you thinking It's year, that's I pointing return just built? AI strength first, may there. down stockpiling the more to ahead any in seeing get on consumption see we're strength maybe to do are Asia, sense come not that's of or that term end and for being

Emily Yang

Yes.

like we customer is So, David, we actually forecast, with and actually of manage actual that. work their believe So build an advanced an or very closely, stuff with actual we build right? this the closely real instead

So just see this forecast to just extended we this the we're have that will beginning the so forecast we pretty is also next the than of a The month. momentum. month, continue. good actually RAM, year, confident This more next so do

David Williams

two quarter, not just if or client if about longer about maybe kind AI seeing term, of several about the server coming performing the on demand versus side, obviously you the then server quarters? the think your next computing just you you AI in your side do But And those how me, maybe that? you Great. -- look kind mix, there, but if for well. you're doing see do growth, over you then, excuse trends think is across how as And of think this well

Emily Yang

the right, market, right? overall, server think of AI increasing the clean, volume that very with or any a even see going a regular the small backlogs overall the server, than the percentage demand lot server overall. I going is server it's think stability, is is additional to from so inventory So, server RAM. revenues, the the the faster right? improve data of and definitely ran taking account the the momentum of AI also still and to be drive regular up And slower right? percentage we overall a among center and we into But see orders continuous I Yes, a really

refresh So, I a would AI one would more area, think big a lot well continue that the drive next definitely and edge faster as more of the as the momentum to generation. be into

are So we that's on. what really counting

Operator

with And our next from question Cowen. Ramsey TD will come Matt

Matthew Ramsay

bit Emily, we could an sentences ballpark? hear talking Just a double folks could. server kind they have click of because to or server X talking of if a I different AI it's imaginations I there their than granular but wonder able to think bit anything AI, content could to day of that you a wanted little be selling wonder call you we much expectations, this one of X of in, emphasize what board? dynamics bit talk calibrate across just makers an be we on earnings the or do so content can specific without sort time, if little of if unit more wins, dynamics idea or AI about the maybe about precise server dollar I'll be you give that about, Is if can't I a thing on and kind server of at us lot broader more when again. and the is investor Maybe are spend bit little things, and and for about you're that little with X demand you content. servers, components a this let might AI to it level, ODMs,

Emily Yang

and definitely. the, would Yes, chip modules I like and surrounding memory main the that. sets definitely we chips stuff We're so components, complimentary support the say,

actually the Express, is switch. really for I mention key packet win a on PCI bit we call the especially So we are earlier, did little a really, excited, that

other of PCI the call Express competitors Some switches. our

ports. actually PCI additional this with expanding is to So Express the function

really didn't before. So we new definitely momentum It's exciting. a that this is actually see

content the this more on definitely So is expansion.

range It a our oscillators, be So unit, generators servers. on the clock, a products even not board. of different just used. the be This being beyond. top is or is or PCI buffers, brick. and there's on Express unit AI of supply the fans, wide can supporting GPU we're seeing card power DC PCI switch, actually This DC-DC main and the thermal crystal discrete packet clock also It a a can backup battery Express

expanding more really is X this just board. on So

think a center, I overall, a servers data small when but getting to still or AI actually will overall lot ins Like continues percentage we that's wins. improve, the expect inquiry said, and I to And the really momentum the of do design GPU percentage ramp. the on supply we start exciting. continue as well as design

of ramping Like initial will be seen, next year. that continue All expect and I this said, we've do is to traction expand. the this this we will

Matthew Ramsay

recovery out, great to at gross changed as continues which forward Any to make of the want company? different to of here. Any company understanding comments the grows the there recover from sort ways question how about coming where We've pretty I additional anything gross now for violent down, Thank will model don't we went we're margin then period is margin color. for know, margin. and the impact thumb the on had you utilization? way all rules we're been as as to in with a like the the for to be cyclicality bit the variables it. revenue Got just and the way obviously has last, of XX over the to follow-up my I back industry went dig I guess, We up little months. see. newer I'd sure a team, Has that there?

Brett Whitmire

a I'll Brett. is comments. This Matt. few make Yes,

I may think up Gary follow it. on

expectation the something driving of you you to product kind look given we and ago, that still provided and kind be and that some we're that been But principal is X% things forward, the X% kind mix going that that in that that The that margin multiple clearly through that this there'd has our apply. influence as tailwinds foundationally, industrial auto still of of the correction the past what this improving industrial. midst was of used that than is pleased are I auto see able to percentage XX%, and go the gotten our to and think we back we've we've on actually today over our we've reiterated in part of a time. we've we're knob of or is understandable And biggest support if what I a that And think maintain XX%. that, higher is probably margin. we're quite above to point of stability year over is, definitely would

have the that to that's and strengthen. grow. and correction and continuing industrial that You'd will that We're mix regions to of to auto The continue Asia the a particularly of the see maintain strength lot drive continues in today.

I we'll think see go forward. broadly that we as more

our impact driving of of factories drive things we've X X broad We GFAB, that elements of pointing over a making overall see the increase as to qualified bought portfolio. our and more to march the last we're to model in to cylinders and we're firing analog demands is portfolio And on particularly the some portfolio across our our the And SPFAB will business also improve model volumes able will in discrete total. a years, and which hybrid that to that those utilization. be growth our to continuing significant all getting each fairly get I really also a think or of lot flexibility progress has back our our across we and in

that? do So, you Gary, want to follow

Gary Yu

Yes, actually.

point think, good bringing up for industry. very the I here is Brett automotive actually

future. lot new products the on those areas. increase quarter We which kind lot confident content that. by content X a near driving of very think I'm quarter released those the in in in for I of can a we're areas, X increase our

loading. Okay, for second the here is the

product and about quarters we're what the couple process porting mentioned driving on is Brett external for it, As from already. foundry

several And the is and so progress very well far, key qualification achieved milestones.

Okay.

and see starting sites, product do short time. qualified we're to we also in our customer several key receive PO So being in

So got major on a I've loading future. wafer good the for the confidence in pretty those X fab

Operator

Our Gerra Baird. with come from Instructions] will question [Operator next Tristan

Tristan Gerra

PC demand for and content about AI in So notably talked -- you PC and demand QX, Asia.

and the of part you There's in the And peaking, of that in been quarter? automotive China coming You week for weakness trends those the talking do see some seasonality. you see trends? Are this divergent that China? Asia overall what about you seeing this are from consumer market. environment an kind How potentially companies [indiscernible] standpoint also talked in currently about incremental demand is

Emily Yang

Tristan, Yes. is this Emily.

little address continue from end demand the the point me In some the question, also let overall, XC the China as of area bit we're well. consumer on right? But a we well, focus Asia, right? especially improvement auto expansion, seeing view. in this specifically, industrial as on content on is side So soft, to So consumption especially

say, all we the really they for it's actually, still potential called really in performance as territory we right, a customer, So, CP would cost at actually value, looking good And look all, at, value. view I China us.

long as still and features and a really the local continue values and of Asia a also we driving to which commodity successful functions, in the deep product, strong As there's overall China on walking competition and suppliers, overall. positive away new see to be for and from lot from technology path focused of we focus introducing see most products Diodes the in

Tristan Gerra

done And it's of I you've strategy mixed overall, past, we capacity. around the there your the that that table at say be assuming in Are that feel year. And next on the could M&A then even increasing be incremental And where medium-term? think that standpoint? should you was great. looking technologies from how for not most a any centered it's That's to I'm fair Okay. probably M&A

Gary Yu

talk Tristan, to Well, Gary is this actually, Nice you. no. to again.

GFAB years. as analog as two know, SPFAB we Scotland, And fab, discrete our as one basically, in we GFAB So, other couple acquired the of basically, U.S. SPFAB in and wafer the our well One fab. the identify past the as as is fab you in wafer is wafer there's our

So process we FET [indiscernible], as of into our and advanced a very in the external got Portland. technologies into foundry from internally quite South also like in few externally well analog fab wafer MOSFET, the porting the of porting change from kind Scotland, fab wafer battery fab kind and and this the

to a try be same those those have internally. projects wafer So process-wise, technology say important our sure okay, product big I instead the developed of the and time, team X make the most process. this of porting in will the fabs, the -- would the kinds design can wafer process within we also that that Diodes, and newer X At X in projects

Brett Whitmire

think, I manufacturing enable terms in line us add that looking top the can to to that that, the would be most M&A provide. you help footprint be complementary we Tristan, of would and things would Well, to likely and see at,

Lu continues, we the acquisition-related of actively combination are to growth. past, area. I so, that and organic and over And had we've in That and Dr. of think, look continuing activity Gary a

Gary Yu

any very, percent-wise Yes, the for revenue that very about looking looking M&A, growth only and GP careful for actually, can are size, but like also we not synergy that. right target Diodes for more the the and with help

we're looking forward So definitely to that.

Operator

And this over for remarks. question-and-answer will our session. closing to Yu I'd Gary the to like conclude turn any back conference

Gary Yu

call. conference progress Well, thank Operator, next you, everyone, on may We you to reporting forward our disconnect. participating look quarter's for call. now today's on

Operator

today's now and concluded. for lines is now you time. your attending this may conference disconnect Thank The at you presentation,

Diodes (DIOD) 8 Aug 242024 Q2 Earnings call transcript