UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission file number: 002-25577 DIODES INCORPORATED (Exact name of registrant as specified in its charter) Delaware 95-2039518 (State or other jurisdiction of inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 002-25577 | --- | --- | --- | |---------------------------------------------------------------------------------------|---------------------------- ...

Diodes Incorporated (NASDAQ:DIOD) Q4 2021 Earnings Conference Call February 9, 2022 5:00 PM ET Company Participants Leanne Sievers - Shelton Group, IR Keh-Shew Lu - Chairman, President & CEO Brett Whitmire - CFO Emily Yang - SVP, Worldwide Sales and Marketing Gary Yu - SVP, Business Groups Conference Call Participants Matt Ramsay - Cowen & Company William Stein - Truist Securities Gary Mobley - Wells Fargo Securities. Tristan Gerra - Baird David Williams - Benchmark Disclaimer*: This transcript is designed ...

Financial Data and Key Metrics Changes - Revenue for Q3 2021 was a record $471.4 million, an increase of 7% from $440.4 million in Q2 2021 [13] - Gross profit for Q3 2021 was $181.2 million, representing 38.4% of revenue, an increase of 13% from $159.8 million or 36.3% of revenue in Q2 2021 [13] - GAAP net income for Q3 2021 was a record $68.4 million or $1.50 per diluted share, a 23% increase compared to $1.22 per diluted share in Q2 2021 [16] - EBITDA for Q3 2021 was a record $114.5 million or 24.3% of revenue, compared to $99.4 million or 22.6% of revenue in the prior quarter [18] Business Line Data and Key Metrics Changes - Automotive revenue grew over 65% year-over-year and 7% sequentially, contributing to an eight-year CAGR of 30% [10][27] - Industrial market revenue reached a quarterly record, growing 66% over the prior year and 17% sequentially [30] - Computing market revenue grew over 140% year-over-year, driven by record Pericom revenue [34] Market Data and Key Metrics Changes - Asia represented 80% of revenue, Europe 12%, and Americas 8% in Q3 2021 [25] - In terms of end markets, computing represented 30% of revenue, industrial 24%, consumer 18%, communication 16%, and automotive 12% [26] Company Strategy and Development Direction - The company aims for a target of $1 billion in gross profit on $2.5 billion in revenue and 40% gross margin by 2025 [12] - The strategy includes content expansion initiatives and a total solution sales strategy to drive design-ins and design wins [38][59] Management's Comments on Operating Environment and Future Outlook - Management noted that the backlog remains strong and has not seen significant changes in customer behavior regarding inventory rebalancing [40] - The company expects revenue for Q4 2021 to increase to approximately $476 million, which is better than typical seasonality [23] Other Important Information - Cash flow generated from operations was $98.9 million for Q3 2021, with free cash flow of $57.8 million [19] - Total inventory days increased to approximately 99 in Q3 2021, with total inventory dollars increasing to approximately $322.1 million [22] Q&A Session Summary Question: Market share gains in the quarter - Management indicated that market share gains were across all product lines, not just Pericom, driven by content expansion and design wins [38] Question: Supply constraints and shipping - Management acknowledged supply constraints but noted that the backlog remains strong and customer demand is being understood to overcome bottlenecks [40] Question: Seasonal guidance and end markets - Management stated that strength is seen across all markets, particularly in automotive, industrial, and computing, with consumer-related low-end PCs being slightly softer [42] Question: Capacity expansion efforts - Management discussed ongoing capacity expansion by converting smaller wafers to larger ones and ramping up production in various fabs [49] Question: Gross margin improvements - Management indicated that gross margin improvements are primarily due to manufacturing efficiency and product mix rather than price increases [56]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for the periods ended September 30, 2021, detail the company's financial position, operational results, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $2.04 billion while total liabilities decreased to $824.8 million, resulting in a significant increase in total equity to $1.22 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$2,041,909** | **$1,979,457** | | Total current assets | $1,063,883 | $1,023,987 | | **Total Liabilities** | **$824,796** | **$963,334** | | Total current liabilities | $444,625 | $509,762 | | Long-term debt, net | $218,000 | $288,179 | | **Total Equity** | **$1,217,113** | **$1,016,123** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company achieved substantial year-over-year growth in net sales and net income for both the third quarter and the first nine months of 2021 Q3 Statement of Operations Highlights (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net sales | $471,422 | $309,459 | | Gross profit | $181,231 | $111,090 | | Income from operations | $77,247 | $37,855 | | Net income attributable to common stockholders | $68,424 | $27,152 | | Diluted EPS | $1.50 | $0.51 | Nine Months Statement of Operations Highlights (in thousands, except per share data) | Metric | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | | Net sales | $1,324,991 | $878,845 | | Gross profit | $479,669 | $308,424 | | Income from operations | $189,994 | $94,576 | | Net income attributable to common stockholders | $163,250 | $68,353 | | Diluted EPS | $3.59 | $1.30 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first nine months of 2021, operating cash flow more than doubled, while significant cash was used for debt repayment and increased capital expenditures Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash from Operating Activities | $260,989 | $126,435 | | Net cash used in Investing Activities | ($89,299) | ($51,776) | | Net cash (used in) from Financing Activities | ($210,259) | $294,680 | | **Change in cash and cash equivalents** | **($35,691)** | **$380,327** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, sales breakdowns by geography, debt structure, and the significant acquisition of Lite-On Semiconductor (LSC) - For the nine months ended September 30, 2021, net sales to Asia were **$1.06 billion**, representing approximately **80%** of total net sales, while distributor sales accounted for **$867.0 million**, or about **65%** of total net sales[53](index=53&type=chunk) - The company closed its acquisition of Lite-On Semiconductor Corporation (LSC) on November 30, 2020, for a total consideration of **$154.0 million** after adjustments to expand its portfolio of 'green' power-related semiconductor devices[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - In March 2021, the company entered an agreement to sell one of its manufacturing subsidiaries in China for approximately **$18.0 million**, with the related assets and liabilities classified as held-for-sale[83](index=83&type=chunk)[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant financial growth in 2021, driven by organic expansion and the LSC acquisition, with strong performance in automotive and computing markets [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Q3 2021 net sales grew 52.3% year-over-year, fueled by both organic growth and the LSC acquisition, with gross margin improving to 38.4% Q3 2021 vs Q3 2020 Performance (in millions) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $471.4 | $309.5 | 52.3% | | Gross profit | $181.2 | $111.1 | 63.1% | | Gross Margin | 38.4% | 35.9% | +250 bps | - The **52.3%** increase in Q3 2021 net sales was driven by **27.8%** organic growth from the legacy business and **24.6%** related to the LSC acquisition[110](index=110&type=chunk) Revenue by End-User Market (Q3) | End-User Market | Q3 2021 % of Revenue | Q3 2020 % of Revenue | | :--- | :--- | :--- | | Industrial | 24% | 22% | | Communications | 16% | 21% | | Consumer | 18% | 27% | | Computing | 30% | 19% | | Automotive | 12% | 11% | [Financial Condition, Liquidity and Capital Resources](index=41&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Working capital increased to $619.3 million, with liquidity from operations and credit facilities deemed sufficient to cover needs for at least the next 12 months - Working capital increased to **$619.3 million** at September 30, 2021, from **$514.2 million** at December 31, 2020[133](index=133&type=chunk) - Capital expenditures for the nine months ended September 30, 2021, were **$100.3 million**, compared to **$47.5 million** for the same period in 2020[134](index=134&type=chunk) - As of September 30, 2021, foreign subsidiaries held approximately **$257.7 million** of cash, cash equivalents, and investments[135](index=135&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risks were reported from those disclosed in the 2020 Annual Report on Form 10-K - There have been **no material changes** to the company's market risks from those disclosed in the 2020 Form 10-K[195](index=195&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of September 30, 2021, with no material changes to internal controls during Q3 - The CEO and CFO concluded that as of September 30, 2021, the company's disclosure controls and procedures were **effective**[196](index=196&type=chunk) - There were **no changes** in internal control over financial reporting during the third quarter of 2021 that materially affected, or are reasonably likely to materially affect, these controls[198](index=198&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any material pending litigation and expects no material adverse effect from ordinary-course legal proceedings - The Company is **not currently a party to any pending litigation** that it considers material[200](index=200&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, except for a new risk related to potential impacts from electricity rationing in China - A **new risk factor** has been added related to electricity rationing in China, which could lead to higher electricity prices and potential curtailments affecting the company's manufacturing facilities[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[206](index=206&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and Inline XBRL documents - Exhibits filed include certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) and various Inline XBRL data files (Exhibits 101 and 104)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)

Diodes Incorporated (NASDAQ:DIOD) Q2 2021 Earnings Conference Call August 5, 2021 5:00 PM ET Company Participants Leanne Sievers – President of Shelton Group Keh-Shew Lu – Chairman, President and Chief Executive Officer Brett Whitmire – Chief Financial Officer Emily Yang – Senior Vice President of Worldwide Sales and Marketing Gary Yu – Senior Vice President of Business Groups Conference Call Participants Gary Mobley – Wells Fargo Securities. Matt Ramsay – Cowen and Company Tristan Gerra – Robert W. Baird W ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides Diodes Incorporated's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the interim period [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Diodes Incorporated's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with detailed notes for the interim period Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2021 (in thousands) | Dec 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $1,042,478 | $1,023,987 | | **Total Assets** | $1,992,969 | $1,979,457 | | **Total Current Liabilities** | $460,205 | $509,762 | | **Total Liabilities** | $849,972 | $963,334 | | **Total Stockholders' Equity** | $1,142,997 | $1,016,123 | Condensed Consolidated Statement of Operations Data (in thousands) | Metric | Three Months Ended June 30, 2021 (in thousands) | Three Months Ended June 30, 2020 (in thousands) | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $440,448 | $288,669 | $853,569 | $569,386 | | **Gross Profit** | $159,802 | $101,492 | $298,438 | $197,334 | | **Income from Operations** | $65,357 | $30,869 | $112,747 | $56,721 | | **Net Income Attributable to Common Stockholders** | $55,374 | $21,033 | $94,826 | $41,201 | | **Diluted EPS** | $1.22 | $0.40 | $2.09 | $0.78 | Condensed Consolidated Statement of Cash Flows Data (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $162,064 | $86,734 | | **Net cash used in investing activities** | ($36,674) | ($34,048) | | **Net cash (used in) provided by financing activities** | ($156,292) | $241,784 | | **Change in cash and cash equivalents** | ($25,611) | $295,114 | [Note 1: Summary of Operations and Significant Accounting Policies](index=10&type=section&id=NOTE%201%20%E2%80%93%20Summary%20of%20Operations%20and%20Significant%20Accounting%20Policies) Diodes Inc. manufactures discrete, logic, analog, and mixed-signal semiconductor products for diverse markets, with financial statements prepared under U.S. GAAP for interim reporting - The company serves high-growth end-user markets including consumer electronics, computing, communications, industrial, and automotive[29](index=29&type=chunk) - Key product categories include diodes, rectifiers, transistors, MOSFETs, power management devices, and solutions for high-speed signals[29](index=29&type=chunk) [Note 7: Segment Information and Net Sales](index=13&type=section&id=NOTE%207%20%E2%80%93%20Segment%20Information%20and%20Net%20Sales) The company operates as a single semiconductor segment, disaggregating net sales by geographic location and sales type, with Asia and distributor sales dominating Net Sales by Region (Three Months Ended June 30, in thousands) | Region | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Asia | $353,312 | $223,056 | | Europe | $54,056 | $43,145 | | Americas | $33,080 | $22,468 | | **Total** | **$440,448** | **$288,669** | Net Sales by Type (Three Months Ended June 30, in thousands) | Sales Type | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Direct sales | $151,048 | $92,671 | | Distributor sales | $289,400 | $195,998 | | **Total** | **$440,448** | **$288,669** | - Net sales from products shipped to China were **$229.3 million** for the three months ended June 30, 2021, a significant increase from **$152.4 million** in the same period of 2020[50](index=50&type=chunk) [Note 8: Debt](index=15&type=section&id=NOTE%208%20%E2%80%93%20Debt) The company utilizes short-term credit facilities in Asia and a long-term credit agreement, with total long-term debt, net of current portion, at **$222.7 million** as of June 30, 2021 - Asia subsidiaries have credit facilities totaling **$173.1 million**, with **$111.8 million** unused and available as of June 30, 2021[51](index=51&type=chunk) - The long-term credit facility includes a term loan with a balance of **$114.7 million** and an undrawn **$150.0 million** revolving facility as of June 30, 2021[52](index=52&type=chunk) Total Debt Summary (in thousands) | Debt Category | June 30, 2021 (in thousands) | Dec 31, 2020 (in thousands) | | :--- | :--- | :--- | | Short-term debt | $60,239 | $140,567 | | Total long-term debt | $243,311 | $312,247 | | **Total long-term debt, net of current portion** | **$222,712** | **$288,179** | [Note 14: Acquisitions and Divestitures](index=21&type=section&id=NOTE%2014%20%E2%80%93Acquisitions%20and%20Divestitures) Diodes agreed to sell a China manufacturing subsidiary for **$18.0 million** in March 2021, following the **$154.0 million** LSC acquisition in November 2020 and Savitech Corporation acquisition in February 2020 - An agreement was made in March 2021 to sell a manufacturing subsidiary in China for approximately **$18.0 million**, with net assets valued at **$16.5 million** classified as held-for-sale[78](index=78&type=chunk)[81](index=81&type=chunk) - The acquisition of LSC closed on November 30, 2020, for a total consideration of **$154.0 million** after adjustments, intended to add LSC's 'green' power-related semiconductor devices[82](index=82&type=chunk)[83](index=83&type=chunk) - The company acquired a controlling interest in Savitech Corporation in 2020 to increase its integrated circuit business, with a total purchase consideration of **$13.9 million**[88](index=88&type=chunk)[89](index=89&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2021 financial results, attributing significant revenue and profitability growth to strong organic performance and the LSC acquisition, covering end-market performance, expenses, liquidity, and capital resources [Results of Operations for the Three Months Ended June 30, 2021 and 2020](index=25&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202021%20and%202020) Q2 2021 net sales increased **52.6%** to **$440.4 million**, driven by organic growth and the LSC acquisition, with gross profit margin improving to **36.3%** and net income more than doubling to **$55.4 million** Q2 2021 vs Q2 2020 Performance (in thousands) | Metric | Q2 2021 (in thousands) | Q2 2020 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $440,448 | $288,669 | 52.6% | | Gross Profit | $159,802 | $101,492 | 57.5% | | Operating Expense | $94,445 | $70,623 | 33.7% | | Net Income | $55,374 | $21,033 | 163.3% | - The **52.6%** increase in net sales was driven by **27.5%** organic growth from the legacy business and **25.1%** from the LSC acquisition[106](index=106&type=chunk) - Gross profit margin increased to **36.3%** in Q2 2021 from **35.2%** in Q2 2020, despite a **5.0%** increase in average unit cost due to price hikes from subcontractors and foundries[96](index=96&type=chunk)[112](index=112&type=chunk) Revenue by End-User Market (Q2) | End-User Market | % of Total Revenue 2021 | % of Total Revenue 2020 | | :--- | :--- | :--- | | Industrial | 22% | 22% | | Communications | 17% | 22% | | Consumer | 19% | 27% | | Computing | 30% | 19% | | Automotive | 12% | 10% | [Results of Operations for the Six Months Ended June 30, 2021 and 2020](index=27&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202021%20and%202020) H1 2021 net sales grew **49.9%** to **$853.6 million**, driven by organic growth and LSC, with gross profit increasing **51.2%** to **$298.4 million** and operating income nearly doubling H1 2021 vs H1 2020 Performance (in thousands) | Metric | H1 2021 (in thousands) | H1 2020 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $853,569 | $569,386 | 49.9% | | Gross Profit | $298,438 | $197,334 | 51.2% | | Operating Expense | $185,691 | $140,613 | 32.1% | | Income Tax Provision | $21,554 | $9,226 | 133.6% | - The **49.9%** increase in net sales for H1 2021 was driven by **25.7%** organic growth and **24.2%** related to the LSC acquisition[118](index=118&type=chunk) Revenue by End-User Market (H1) | End-User Market | % of Total Revenue 2021 | % of Total Revenue 2020 | | :--- | :--- | :--- | | Industrial | 22% | 24% | | Communications | 17% | 23% | | Consumer | 19% | 25% | | Computing | 30% | 18% | | Automotive | 12% | 11% | [Financial Condition, Liquidity and Capital Resources](index=29&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Primary liquidity sources are cash from operations and credit facilities, with working capital at **$582.3 million** as of June 30, 2021, and capital expenditures of **$53.7 million** for H1 2021 - Working capital increased to **$582.3 million** at June 30, 2021, from **$514.2 million** at December 31, 2020[130](index=130&type=chunk) - Capital expenditures were **$53.7 million** for the first six months of 2021, in line with the target range of **5% to 9%** of net sales[131](index=131&type=chunk) - Foreign subsidiaries held approximately **$213.6 million** of cash, cash equivalents, and investments as of June 30, 2021[132](index=132&type=chunk) [Item 3. 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 market risks were reported since the Annual Report on Form 10-K for the fiscal year ended December 31, 2020 - No material changes to market risks were reported since the last Annual Report on Form 10-K[163](index=163&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO affirmed the effectiveness of disclosure controls and procedures as of June 30, 2021, with no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures and found them to be effective as of June 30, 2021[164](index=164&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[166](index=166&type=chunk) [PART II – OTHER INFORMATION](index=37&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers legal proceedings and risk factors, providing updates on the company's litigation status and potential risks [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material pending litigation and does not anticipate adverse effects from routine legal proceedings on its financial position - The Company is not currently a party to any pending litigation that it considers material[169](index=169&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the Annual Report on Form 10-K, with key categories including business, international operations, and common stock risks - There have been no material changes to risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020[171](index=171&type=chunk) - Key risk categories include business risks (COVID-19 impact, industry cyclicality, competition), international operations risks (China operations, tariffs, foreign currency), and common stock risks (price volatility, anti-takeover provisions)[154](index=154&type=chunk)[157](index=157&type=chunk)[160](index=160&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q1 2021 was a record $413.1 million, an increase of 17.9% from $350.4 million in Q4 2020 [15] - Gross profit reached $138.6 million, representing 33.6% of revenue, compared to $122.7 million or 35% in Q4 2020 [16] - GAAP net income for Q1 2021 was $39.5 million or $0.87 per diluted share, up from $29.7 million or $0.59 per diluted share in Q4 2020 [19] - Non-GAAP adjusted net income was $42 million or $0.93 per diluted share, compared to $37.3 million or $0.74 per diluted share in Q4 2020 [20] - EBITDA for Q1 was $81.7 million or 19.8% of revenue, compared to $67.1 million or 19.1% in the prior quarter [22] - Cash flow from operations was $68.2 million, with free cash flow of $51 million [23] Business Line Data and Key Metrics Changes - Computing represented 30% of revenue, industrial 22%, consumer 19%, communication 17%, and automotive 12% [30] - Automotive revenue increased 18% sequentially and 61% year-over-year, driven by strong organic growth [31] - Industrial market revenue grew 13% sequentially and 25% year-over-year [36] - Computing market revenue increased 54% quarter-over-quarter and 160% year-over-year [41] Market Data and Key Metrics Changes - Asia accounted for 81% of revenue, Europe 12%, and North America 7% [30] - Distributor inventory decreased below the normal range of 11 to 14 weeks, indicating strong future demand [74] Company Strategy and Development Direction - The integration of LSC is progressing well, with facility loading reaching 70%, ahead of the original target of 50% [13][54] - The company aims to achieve $2.5 billion in revenue by 2025, focusing on content expansion and product mix improvement [68] - The strategy includes moving away from low-end commodity markets to higher-end technology products [62] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across all regions and segments, with a very strong book-to-bill ratio and backlog [71] - The company is not experiencing severe capacity constraints due to its internal manufacturing capabilities [56] - Management expects continued sequential growth in Q2 2021, with revenue guidance of approximately $434 million [26] Other Important Information - Total debt at the end of Q1 was $415 million, with cash and equivalents totaling approximately $339 million [24] - The company has begun to realize manufacturing synergies from the LSC acquisition, enhancing operational efficiency [12] Q&A Session Summary Question: Update on LSC integration and utilization rates - Management confirmed that LSC facility utilization has improved significantly and is expected to continue increasing in the coming quarters [49] Question: Impact of industry capacity constraints - Management indicated that while there are market constraints, the company has sufficient internal capacity to support growth [52][56] Question: Lead times and order dynamics - Management acknowledged that lead times are stretching but emphasized the importance of understanding true customer demand [60] Question: Competitive threats from local manufacturers - Management stated that new competitors from China primarily target low-end markets, which aligns with the company's strategy to focus on higher-end products [62] Question: Changes in manufacturing sourcing strategy - Management expressed a commitment to increasing internal manufacturing capacity while reducing reliance on external sources [66] Question: Backlog and order velocity - Management reported a strong backlog and healthy order velocity, indicating robust demand across all segments [72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission file number: 002-25577 DIODES INCORPORATED (Exact name of registrant as specified in its charter) Delaware 95-2039518 (State or other jurisdiction of inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | |-----------------------------------------------------------------------------|------------------------------------------------------------------------ ...