Diodes(US:DIOD)2025-08-07 21:10PART I – FINANCIAL INFORMATION Financial Statements (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 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 202410 - 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 202410 Condensed Consolidated Statements of Operations 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 202512 Condensed Consolidated Statements of Cash Flows 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 capital22 - 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 subsidiary22 - Financing activities in H1 2025 included a $10.0 million repurchase of common stock22 Notes to Condensed Consolidated Financial Statements 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 markets4990 - 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 sales50 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 million86 - 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 packaging7583 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q2 2025 sales growth driven by volume, gross margin decline due to pricing and utilization, and strong liquidity Results of Operations 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 conditions9798 - 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 pressures98 - 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%104105 Financial Condition, Liquidity and Capital Resources 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 2024109 - Working capital increased to $871.0 million at June 30, 2025, from $848.6 million at December 31, 2024110 - 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 available112113 Quantitative and Qualitative Disclosures About Market Risk 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-K163 Controls and Procedures 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, 2025164 - 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 controls165 PART II – OTHER INFORMATION Legal Proceedings 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 material168 Risk Factors 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, 2024170 - Key business risks include the impact of government tariffs, the cyclical nature of the semiconductor industry, intense competition, and reliance on third-party suppliers133134141 - International operations expose the company to risks such as economic slowdowns in China, foreign currency fluctuations, and changes in foreign tax laws154155156 Unregistered Sales of Equity Securities and Use of Proceeds 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 authorization172 Exhibits 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 files176