[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for H1 2025 show significant growth in net income, EPS, and positive operating cash flow, with total assets reaching **$2.47 billion** [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025 Balance Sheet Summary (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,244,614 | $1,224,153 | | **Total Assets** | $2,471,555 | $2,386,281 | | **Total Current Liabilities** | $373,633 | $375,596 | | **Total Liabilities** | $537,384 | $517,334 | | **Total Equity** | $1,934,171 | $1,868,947 | - Inventories increased slightly to **$482.7 million** as of June 30, 2025, from **$474.9 million** at the end of 2024[10](index=10&type=chunk) - Cash and cash equivalents stood at **$317.0 million** at the end of Q2 2025, a modest increase from **$308.7 million** at year-end 2024[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's revenue, gross profit, and net income performance for the second quarter and first half of 2025 Quarterly Performance (in thousands of USD, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $366,212 | $319,771 | +14.5% | | Gross Profit | $115,324 | $107,386 | +7.4% | | Income from Operations | $9,389 | $3,708 | +153.2% | | Net Income Attributable to Common Stockholders | $46,098 | $8,000 | +476.2% | | Diluted EPS | $0.99 | $0.17 | +482.4% | Six-Month Performance (in thousands of USD, except per share data) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $698,325 | $621,743 | +12.3% | | Gross Profit | $220,018 | $206,970 | +6.3% | | Income from Operations | $10,685 | $16,656 | -35.8% | | Net Income Attributable to Common Stockholders | $41,661 | $22,038 | +89.0% | | Diluted EPS | $0.90 | $0.48 | +87.5% | - A significant unrealized gain on investments of **$29.6 million** and a **$13.7 million** gain on the disposal of a subsidiary substantially boosted net income in Q2 2025[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash generation and usage across operating, investing, and financing activities for H1 2025 Cash Flow Summary for Six Months Ended June 30 (in thousands of USD) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | $98,264 | $(16,744) | | Net cash flows from investing activities | $(78,614) | $(30,840) | | Net cash flows from financing activities | $(30,116) | $(16,974) | | **Change in cash and cash equivalents** | **$8,053** | **$(50,826)** | - Operating cash flow improved significantly in H1 2025 to **$98.3 million**, compared to a use of cash of **$16.7 million** in H1 2024, driven by higher net income and favorable changes in working capital[22](index=22&type=chunk) - Investing activities in H1 2025 included **$36.3 million** in capital expenditures, **$49.2 million** for purchases of equity securities, and proceeds of **$16.0 million** from the sale of a subsidiary[22](index=22&type=chunk) - Financing activities in H1 2025 included a **$10.0 million** repurchase of common stock[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides supplementary information on segment operations, customer concentration, regional sales, and significant transactions - The company operates in a single segment, standard semiconductor products, serving the industrial, automotive, computing, consumer, and communications markets[49](index=49&type=chunk)[90](index=90&type=chunk) - In Q2 2025, two customers accounted for **12.5%** and **12.0%** of net sales, respectively. For the first six months of 2025, two customers represented **11.9%** and **11.4%** of net sales[50](index=50&type=chunk) Net Sales by Region (in thousands of USD) | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Asia | $285,976 | $245,643 | | Europe | $45,545 | $47,364 | | Americas | $34,691 | $26,764 | - On May 8, 2025, the company sold its **56.4%** ownership stake in TF Semiconductor Solutions, Inc. to Microchip Technology Incorporated, resulting in a gain of **$13.7 million**[86](index=86&type=chunk) - In May 2025, the company entered a joint venture to acquire a **43%** interest in ATX Semiconductor SDN in Malaysia to build synergies in testing and packaging[75](index=75&type=chunk)[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 sales growth driven by volume, gross margin decline due to pricing and utilization, and strong liquidity [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section analyzes the company's net sales, gross profit, and operating expenses for the second quarter and first half of 2025 Q2 2025 vs Q2 2024 Performance Summary (in thousands of USD) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $366,212 | $319,771 | 14.5% | | Gross profit | $115,324 | $107,386 | 7.4% | | Gross Margin | 31.5% | 33.6% | -2.1 p.p. | | Total operating expense | $105,935 | $103,678 | 2.2% | - The **14.5%** increase in Q2 2025 net sales was driven by a **19.5%** increase in volume, partially offset by a **4.2%** decrease in weighted-average sales price due to market conditions[97](index=97&type=chunk)[98](index=98&type=chunk) - The decrease in Q2 2025 gross profit margin to **31.5%** from **33.6%** in Q2 2024 was primarily due to lower factory utilization and market pricing pressures[98](index=98&type=chunk) - For the six months ended June 30, 2025, net sales increased **12.3%** YoY, while gross profit margin decreased to **31.5%** from **33.3%**[104](index=104&type=chunk)[105](index=105&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=34&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, working capital, and available credit facilities, highlighting its liquidity - As of June 30, 2025, the company had **$322.8 million** in cash, cash equivalents, and restricted cash, up from **$314.7 million** at year-end 2024[109](index=109&type=chunk) - Working capital increased to **$871.0 million** at June 30, 2025, from **$848.6 million** at December 31, 2024[110](index=110&type=chunk) - The company has access to a **$225.0 million** revolving credit facility, which was undrawn as of June 30, 2025, and various short-term credit facilities for its Asia subsidiaries totaling **$115.5 million**, with **$87.5 million** available[112](index=112&type=chunk)[113](index=113&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risks were reported compared to the 2024 Annual Report on Form 10-K - There have been no material changes to the company's market risks from those disclosed in the 2024 Form 10-K[163](index=163&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO confirmed effective disclosure controls and procedures, with no material changes to internal control over financial reporting in Q2 2025 - The CEO and CFO evaluated the company's disclosure controls and procedures and found them to be effective as of June 30, 2025[164](index=164&type=chunk) - No changes occurred in the company's internal control over financial reporting during Q2 2025 that materially affected, or are reasonably likely to materially affect, these controls[165](index=165&type=chunk) [PART II – OTHER INFORMATION](index=37&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any pending litigation deemed material - The Company is not currently a party to any pending litigation that it considers material[168](index=168&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, reiterating concerns like tariffs, industry cyclicality, and international operational risks - There have been no material changes to the risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[170](index=170&type=chunk) - Key business risks include the impact of government tariffs, the cyclical nature of the semiconductor industry, intense competition, and reliance on third-party suppliers[133](index=133&type=chunk)[134](index=134&type=chunk)[141](index=141&type=chunk) - International operations expose the company to risks such as economic slowdowns in China, foreign currency fluctuations, and changes in foreign tax laws[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **$10.0 million** of common stock in Q2 2025 under a **$100.0 million** program, with **$90.0 million** remaining Common Stock Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share (USD) | Total Cost (approx. USD) | | :--- | :--- | :--- | :--- | | May 13-27, 2025 | 210,944 | $47.43 | $10,004,193 | - The repurchases were made under a **$100.0 million** stock buyback program announced on May 8, 2025. As of the end of the period, approximately **$90.0 million** remained available under this authorization[172](index=172&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed, including CEO and CFO certifications and Inline XBRL documents - The exhibits filed with this report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as Inline XBRL data files[176](index=176&type=chunk)

Financial Performance - Q2 2025 - Revenue reached $366.2 million, a 10% sequential increase and a 14% year-over-year increase[24, 23] - GAAP gross profit was $115.3 million, with a GAAP gross margin of 31.5%[24, 31] - Non-GAAP EPS was $0.32, a 68.4% sequential increase[24] - Non-GAAP net income was $15 million, a 70.5% sequential increase[24, 31] - EBITDA reached $84.5 million, representing 23.1% of revenue[24, 31] - Cash flow from operations was $41.5 million, representing 11.3% of revenue[24, 31] - The company holds $333 million in cash and cash equivalents with $54 million in total debt[23, 24] Future Outlook - Q3 2025 - The company expects revenue of approximately $392 million, plus or minus 3%, representing a 12% year-over-year growth at the mid-point[3, 33] - GAAP gross margin is expected to be 31.6%, plus or minus 1%[3, 33] - Non-GAAP operating expenses are expected to be approximately 26% of revenue, plus or minus 1%[3, 33] - Net interest income is expected to be approximately $1 million[3, 33]

Financial Performance & Outlook - Diodes Incorporated reported first quarter 2025 revenue of $332.1 million[118] - The GAAP gross profit margin for the first quarter of 2025 was 31.5%[118] - The company anticipates second quarter 2025 revenue to be approximately $355 million, plus or minus 3%[3] - The company expects GAAP gross margin for the second quarter of 2025 to be 31.8%, plus or minus 1%[3] Strategic Goals & Market Focus - Diodes Incorporated aims to achieve $1 billion in gross profit[25] - The company's long-term revenue target is $2.5 billion[25] - Diodes Incorporated is focusing on high-margin automotive and industrial solutions[121] - Automotive and industrial sectors accounted for 42% of the company's product revenue in 2024[13] Automotive Market Growth - The potential revenue per car for Diodes' products is estimated at $213.25[53] - The company's dollar content per car is projected to increase to $213 in 2025[56] Key Products & Applications - Diodes' key products for AI servers include Analog, Power Management, MOS/BJT, and Timing and Connectivity, totaling $90 per box[83] - The company provides total system solutions for various applications, including embedded systems and cloud computing[42, 81]

Summary of Diodes (DIOD) 2025 Conference Call Company Overview - Diodes is a leading supplier of analog and discrete semiconductor solutions, serving various end markets including automotive, industrial, compute, communications, and consumer [3][4] - The company has been profitable for 33 consecutive years and reported $1.3 billion in revenue for 2024 [4] Market Segments and Performance - Diodes has consistently exceeded its goal of generating 40% of revenue from automotive and industrial segments, achieving a combined 42% in recent quarters [5][7] - The automotive segment has grown at a CAGR of 22% since 2013, with content per car increasing from $28 in 2013 to $213 in 2025 [6] - The computing segment is the largest, growing 27% from the previous quarter [7] Inventory and Demand Insights - Current inventory levels are slightly above the normal range of 11 to 14 weeks, but there has been a decrease in both internal and channel inventory [13][14] - The company expects a stronger second half of 2025, with indications of recovery in demand across various segments, particularly automotive and industrial [17][19] Pricing Strategy and Market Position - Diodes has focused on long-term relationships with customers rather than short-term pricing gains, which has resulted in a solid market position [23][25] - Pricing trends are stabilizing, with a historical model of 1.5% to 2% quarterly price erosion [27] Competition and Market Dynamics - Competition from local Chinese suppliers remains, but there is a belief that consolidation will occur in the market [30][32] - Diodes is focusing on differentiated, higher-end products to maintain competitiveness in the Chinese market [33] Product Development and Innovation - The company introduced over 300 new products for the automotive segment last year, with ongoing development in power management and silicon carbide technologies [16][56] - The Pericom product line is expanding into automotive and industrial applications, with a focus on timing and signal integrity products [49][50] Gross Margin and Production Strategy - The company is working to improve gross margins through increased internal production and a better product mix, with a current hybrid model of 55% internal and 45% external production [63][64] - Focus on higher-margin products in automotive and industrial segments is expected to enhance overall margins [65] Conclusion - Diodes is well-positioned for growth with a strong focus on innovation, customer relationships, and strategic market positioning, particularly in the automotive and industrial sectors [25][65]

Revenue Performance - Revenue for Q1 2025 was $332.1 million, a 10% increase from $302.0 million in Q1 2024[4] - Net sales for Q1 2025 increased to $332.1 million, up 10% from $302.0 million in Q1 2024[27] - The company expects Q2 2025 revenue to increase to approximately $355 million, representing an 11% year-over-year growth[17] Profitability Metrics - GAAP net loss was $4.4 million, or a loss of $0.10 per diluted share, compared to a net income of $14.0 million, or $0.30 per diluted share in Q1 2024[9] - Non-GAAP adjusted net income was $8.8 million, or $0.19 per diluted share, down from $13.0 million, or $0.28 per diluted share in Q1 2024[10] - GAAP gross profit margin was 31.5%, compared to 33.0% in Q1 2024[4] - EBITDA for Q1 2025 was $26.2 million, or 7.9% of revenue, compared to $48.3 million, or 16.0% of revenue in Q1 2024[13] - Free cash flow (FCF) for Q1 2025 was $40.8 million, indicating strong cash generation after capital expenditures[42] - EBITDA for Q1 2025 was $26.2 million, down from $48.3 million in Q1 2024, highlighting a decrease in operational profitability[45] Operating Expenses - Research and development expenses increased to $38.6 million in Q1 2025, up from $34.0 million in Q1 2024, reflecting ongoing investment in new technologies[27] - Total operating expenses for Q1 2025 were $103.4 million, compared to $86.6 million in Q1 2024, indicating a rise in operational costs[27] - Non-GAAP operating expenses for Q2 2025 are expected to be approximately 28.0% of revenue, plus or minus 1%[18] Cash Flow and Liquidity - Cash flow from operations for Q1 2025 was $56.7 million, with free cash flow of $40.8 million[14] - As of March 31, 2025, the company had approximately $349 million in cash and cash equivalents[15] - Cash and cash equivalents increased from $308,671 million to $335,754 million, reflecting a growth of about 8.5%[47] Balance Sheet Highlights - Total assets decreased from $2,386,281 million on December 31, 2024, to $2,356,341 million on March 31, 2025, a decline of approximately 1.25%[47] - Current assets remained relatively stable, totaling $1,224,890 million as of March 31, 2025, compared to $1,224,153 million at the end of 2024[47] - Accounts receivable decreased from $325,517 million to $302,241 million, a reduction of approximately 7.1%[47] - Total liabilities decreased from $517,334 million to $484,507 million, a decline of about 6.34%[47] - Total stockholders' equity increased from $1,868,947 million to $1,871,834 million, showing a slight growth of approximately 0.15%[47] - Retained earnings slightly decreased from $1,719,298 million to $1,714,861 million, a decline of about 0.26%[47] Shareholder Information - The number of common shares issued and outstanding increased from 46,332,891 to 46,395,345[47] - Treasury stock remained unchanged at a cost of $338,100 million[47] Other Comprehensive Income - The company recorded an impairment of equity investment of $5.8 million in Q1 2025, which negatively impacted net income[27] - The company reported a decrease in accumulated other comprehensive loss from $146,724 million to $141,902 million, indicating an improvement[47]

Core Points - Diodes Incorporated held its First Quarter 2025 Financial Results Conference Call on May 8, 2025, with key participants including the President, CFO, and Senior VP of Worldwide Sales and Marketing [1][3]. - The financial results announced are preliminary and subject to finalization and review by the independent registered public accounting firm, indicating that they are unaudited and may be revised before the filing of Form 10-Q for the quarter ended March 31, 2025 [4]. Company Overview - The conference call featured Leanne Sievers from Shelton Group, who introduced the company’s leadership team, including Gary Yu (President), Brett Whitmire (CFO), and Emily Yang (SVP, Worldwide Sales and Marketing) [2][3].

Group 1: Earnings Performance - Diodes reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $0.28 per share a year ago, representing an earnings surprise of 5.56% [1] - The company posted revenues of $332.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.47%, compared to year-ago revenues of $301.97 million [2] - Over the last four quarters, Diodes has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Diodes shares have declined approximately 36.4% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $354.9 million, and for the current fiscal year, it is $1.82 on revenues of $1.43 billion [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which Diodes belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Diodes is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $332.1 million, a 10% increase year-over-year compared to $302 million in Q1 2024, but a decrease of 2.1% sequentially from $339.3 million in Q4 2024 [12][19] - Gross profit for Q1 2025 was $104.7 million, representing 31.5% of revenue, down from 33% in the prior year quarter and 32.7% in the previous quarter [12] - GAAP net loss for Q1 2025 was $4.4 million, or a loss per share of $0.10, compared to net income of $14 million or $0.30 per diluted share in the prior year quarter [14] Business Line Data and Key Metrics Changes - Automotive and industrial markets accounted for 42% of Q1 product revenue, maintaining the same level as the previous quarter [8][20] - The computing market showed strong performance, particularly in AI-related applications, contributing significantly to revenue growth [8][26] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 13%, and North America 9% in Q1 2025, with improvements noted across all regions [19] - Channel inventory levels decreased, indicating a better alignment with actual demand [9][19] Company Strategy and Development Direction - The company announced a $100 million stock repurchase program, reflecting confidence in future growth prospects [10] - The hybrid manufacturing model allows the company to adapt to changing market conditions and customer needs, mitigating tariff impacts [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth, expecting Q2 2025 to show both year-over-year and sequential growth [9][30] - The company is closely monitoring the impact of tariffs and adjusting its strategies accordingly [29] Other Important Information - Cash flow from operations was $56.7 million for Q1 2025, with free cash flow of $40.8 million [16] - Total inventory days decreased to approximately 187 days, down from 193 days in the previous quarter [17] Q&A Session Summary Question: Demand Pull Forward and Stability - Management noted that while tariffs create uncertainty, they do not see significant demand pull forward but rather an improvement in channel inventory and backlog [35][38] Question: Manufacturing Footprint and Tariff Impact - The hybrid manufacturing model remains a priority, and the company will continue to port products from external to internal manufacturing without changing its strategy due to tariffs [40][41] Question: AI CapEx Trends - Demand for AI-related products is strong, particularly in data centers and edge computing, with ongoing design wins expected to drive future growth [43][45] Question: Gross Margin Catalysts - Management highlighted that while there are pressures on margins, improvements in internal loading and product mix are expected to drive margin expansion in the second half of the year [48][51] Question: Inventory Normalization - Current inventory levels are slightly above the target range of 11 to 14 weeks, but management is comfortable with the levels supporting anticipated growth [59][60]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $332.1 million, a 10% increase year-over-year compared to $302 million in Q1 2024, but a decrease of 2.1% sequentially from $339.3 million in Q4 2024 [12][18] - GAAP net loss for Q1 2025 was $4.4 million, or a loss per share of $0.10, compared to net income of $14 million or $0.30 per diluted share in Q1 2024 [14] - Non-GAAP adjusted net income for Q1 2025 was $8.8 million, or $0.19 per diluted share, down from $13 million or $0.28 per diluted share in Q1 2024 [14] - EBITDA for Q1 2025 was $26.2 million, or 7.9% of revenue, compared to $48.3 million or 16% of revenue in the prior year period [15] Business Line Data and Key Metrics Changes - Automotive and industrial markets accounted for 42% of Q1 2025 product revenue, maintaining the same level as the previous quarter [7][19] - The computing segment represented 27% of product revenue, with ongoing design momentum in AI server and data center applications [18][25] - Consumer market revenue was 17%, while communication market revenue was 14% [19][27] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 13%, and North America 9% in Q1 2025, with improvements noted across all regions [18] - Channel inventory levels decreased, indicating a better alignment with actual demand [7][18] Company Strategy and Development Direction - The company announced a $100 million stock repurchase program, reflecting confidence in future growth prospects [10] - The hybrid manufacturing model allows the company to adapt to global customer needs and mitigate tariff impacts [10][28] - The focus remains on content expansion and gaining market share in the automotive sector as it recovers [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in 2025 and beyond, despite current economic uncertainties due to tariffs [29] - The company expects revenue for Q2 2025 to increase to approximately $355 million, representing 11% growth year-over-year [17] Other Important Information - Total inventory days at the end of Q1 2025 were approximately 187, down from 193 in the previous quarter [16] - Cash flow provided by operations was $56.7 million for Q1 2025, with free cash flow of $40.8 million [15] Q&A Session Summary Question: Demand pull forward due to inventory levels and tariffs - Management noted that while tariffs create uncertainty, they do not see significant demand pull forward, but rather an improvement in channel inventory and backlog [35][36] Question: Impact of tariffs on manufacturing strategy - The hybrid manufacturing model will continue to be a focus, with no changes to the strategy despite tariff issues [39][40] Question: AI CapEx trends and regional demand - Demand is strong in data center applications, particularly among hyperscalers, with positive trends in edge computing as well [44][46] Question: Gross margin catalysts and potential headwinds - Management expects margin improvement in the second half of the year, driven by increased revenue and improved product mix [48][52] Question: Normalization of distributor inventories - Current inventory levels are slightly above the target range of 11 to 14 weeks, but management is comfortable with the levels supporting expected growth [58]

Financial Performance & Outlook - Diodes Incorporated reported first quarter 2025 revenue of $332.1 million[117] - The GAAP gross profit margin for the first quarter of 2025 was 31.5%[117] - The company anticipates second quarter 2025 revenue to be approximately $355 million, plus or minus 3%[4, 119] - The company expects GAAP gross margin for the second quarter of 2025 to be 31.8%, plus or minus 1%[4, 119] Strategic Goals & Market Focus - Diodes Incorporated aims for $1 billion in gross profit and $2.5 billion in revenue as a next target[30] - The company's long-term objective is to achieve $1 billion in profit before tax (PBT)[31, 34] - Automotive and industrial sectors accounted for 42% of the company's product revenue in 2024[17] - The company is focusing on total system solutions and content expansion to drive growth[120] Market Opportunities - The automotive sector presents a potential revenue opportunity of $213.25 per car[56] - The company identifies growth opportunities in IoT and Machine-to-Machine (M2M) applications, particularly in short-range technology[79, 83] - AI servers present a significant market opportunity, with Diodes' key products potentially contributing $90 per box[86]