Diodes Inc. Earnings Cheat Sheet: Revenue Strengthens Again by Double-Digits

Diodes Incorporated (NASDAQ:DIOD) reported its results for the second quarter. Diodes Inc. is a designer, manufacturer and supplier of high-quality, application specific standard products within the discrete and analog semiconductor markets, in the consumer electronics, computing, communications, industrial and automotive markets.

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Diodes Incorporated Earnings Cheat Sheet for the Second Quarter

Results: Net income for Diodes Incorporated rose to $18 million (38 cents per share) vs. $16.6 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 8% from the year earlier quarter.

Revenue: Rose 13.8% to $169.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DIOD reported adjusted net income of 43 cents per share. By that measure, the company fell in line with the mean estimate of 43 cents per share. It fell short of the average revenue estimate of $174.3 million.

Quoting Management: Dr. Keh-Shew Lu, President and Chief Executive Officer of Diodes Incorporated, stated, “Revenue for the quarter increased over $20 million, or 14 percent, from the prior year period and five percent sequentially as we gained additional market share due to our continued focus on design wins, new products and customer expansion. Beginning in May, we started to see a slowdown in the global markets, in particular the consumer and computing space. This weakness accelerated in the last several weeks of the quarter affecting several of our customers that build product for the U.S. and European markets. Gross margin in the second quarter was also impacted by the softening demand, which caused us to change our mix to lower margin commodity products to support revenue.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 26.9%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 43.6% from the year earlier quarter.

Gross margin shrank 3.1 percentage points to 32.8%. The contraction appeared to be driven by increased costs, which rose 19.3% from the year earlier quarter while revenue rose 13.8%.

The company has now fallen in line with estimates for the past two quarters. It reported net income of 47 cents in the first quarter.

Competitors to Watch: ON Semiconductor Corp. (NASDAQ:ONNN), Fairchild Semicond. Intl. (NYSE:FCS), Alpha and Omega Semicond. Ltd (NASDAQ:AOSL), Microsemi Corporation (NASDAQ:MSCC), Vishay Intertechnology (NYSE:VSH), IXYS Corporation (NASDAQ:IXYS), Texas Instruments Inc. (NYSE:TXN), Intl. Rectifier Corp. (NYSE:IRF) and National Semicond. Corp. (NYSE:NSM).

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(Source: Xignite Financials)