Diodes(US:DIOD)2021-05-09 17:22Financial 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]