Included in first quarter 2014 GAAP and non-GAAP adjusted net income was approximately $2.1 million, net of tax, non-cash share-based compensation expense. Excluding share based compensation expense, both GAAP and non-GAAP adjusted diluted EPS would have increased by an additional $0.04 per diluted share. GAAP and non-GAAP adjusted net income in the fourth and first quarters of 2013 would have increased by an additional $0.05 per diluted share.
EBITDA, which represents earnings before net interest expense, income tax, depreciation and amortization, for the first quarter 2014 was $32.8 million, compared to $28.8 million for the fourth quarter 2013 and $23.1 million for the first quarter 2013. For a reconciliation of GAAP net income to EBITDA (a non-GAAP measure), see the table near the end of this release for further details.
For the first quarter 2014, net cash provided by operating activities was $46.1 million, which included a reduction in inventory by approximately $4.0 million. Net cash flow was $15.0 million, which reflects the pay down of $17.3 million on long-term debt. Free cash flow was $34.3 million, which included $11.8 million of capital expenditures.
Balance Sheet
As of March 31, 2014, the Company had approximately $212 million in cash and cash equivalents and approximately $21 million in short-term investments. Long-term debt totaled approximately $165 million. Working capital was approximately $495 million.
Business Outlook
Dr. Lu concluded, “For the second quarter of 2014, we expect revenue to increase to a range of $216 million and $229 million, or up 2.9 percent to 9.1 percent sequentially. We expect gross margin to be 30.5 percent, plus or minus 2 percent. Operating expenses are expected to be approximately 21.8 percent of revenue, plus or minus 1 percent. We expect our income tax rate to range between 19 and 25 percent, and shares used to calculate EPS for the second quarter are anticipated to be approximately 48.2 million.”
Conference Call
Diodes will host a conference call on Thursday, May 8, 2014 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its first quarter financial results. Investors and analysts may join the conference call by dialing 1-855-232-8957 and providing the confirmation code 26873769. International callers may join the teleconference by dialing 1-315-625-6979 and enter the same confirmation code at the prompt. A telephone replay of the call will be made available approximately two hours after the call and will remain available until Thursday, May 15, 2014 at midnight Central Time. The replay number is 1-855-859-2056 with a pass code of 26873769. International callers should dial 1-404-537-3406 and enter the same pass code at the prompt. Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the Investors section of Diodes' website at http://www.diodes.com. To listen to the live call, please go to the Investors section of Diodes’ website and click on the conference call link at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Diodes' website for approximately 60 days.
About Diodes Incorporated
Diodes Incorporated (Nasdaq: DIOD), a Standard and Poor's SmallCap 600 and Russell 3000 Index company, is a leading global manufacturer and supplier of high-quality application specific standard products within the broad discrete, logic and analog semiconductor markets. Diodes serves the consumer electronics, computing, communications, industrial, and automotive markets. Diodes' products include diodes, rectifiers, transistors, MOSFETs, protection devices, functional specific arrays, single gate logic, amplifiers and comparators, Hall-effect and temperature sensors; power management devices, including LED drivers, AC-DC converters and controllers, DC-DC switching and linear voltage regulators, and voltage references along with special function devices, such as USB power switches, load switches, voltage supervisors, and motor controllers. Diodes’ corporate headquarters and Americas' sales office are located in Plano, Texas. Design, marketing, and engineering centers are located in Plano; San Jose, California; Taipei, Taiwan; Manchester, England; and Neuhaus, Germany. Diodes’ wafer fabrication facilities are located in Kansas City, Missouri and Manchester, with four manufacturing facilities located in Shanghai, China, and two joint venture facilities located in Chengdu, China, as well as manufacturing facilities located in Neuhaus and Taipei. Additional engineering, sales, warehouse, and logistics offices are located in Fort Worth, Texas; Taipei; Hong Kong; Manchester; Shanghai; Shenzhen, China; Seongnam-si, South Korea; Suwon, South Korea; Tokyo, Japan; and Munich, Germany, with support offices throughout the world. For further information, including SEC filings, visit Diodes’ website at http://www.diodes.com.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995: Any statements set forth above that are not historical
facts are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
those in the forward-looking statements. Such statements include
statements regarding our expectation that: as we look to the second
quarter, we expect revenue to increase sequentially, highlighted by
continued gross margin improvement as well as an ongoing commitment to
cost controls, that we expect to drive further profitability and cash
generation; for the second quarter of 2014, we expect revenue to
increase to a range of $216 million and $229 million, or up 2.9 percent
to 9.1 percent sequentially; we expect gross margin to be 30.5 percent,
plus or minus 2 percent; operating expenses are expected to be
approximately 21.8 percent of revenue, plus or minus 1 percent; and we
expect our income tax rate to range between 19 and 25 percent, and
shares used to calculate EPS for the second quarter are anticipated to
be approximately 48.2 million. Potential risks and uncertainties
include, but are not limited to, such factors as: the risk that BCD’s
business will not be integrated successfully into Diodes’; the risk that
the expected benefits of the acquisition may not be realized; the risk
that BCD’s standards, procedures and controls will not be brought into
conformance within Diodes’ operations; difficulties coordinating Diodes’
and BCD’s new product and process development, hiring additional
management and other critical personnel, and increasing the scope,
geographic diversity and complexity of Diodes’ operations; difficulties
in consolidating facilities and transferring processes and know-how; the
diversion of our management’s attention from the management of our
business; the risk that we may not be able to maintain our current
growth strategy or continue to maintain our current performance, costs
and loadings in our manufacturing facilities; risks of domestic and
foreign operations, including excessive operation costs, labor
shortages, higher tax rates and our joint venture prospects; the risk of
unfavorable currency exchange rates; our future guidance may be
incorrect; the global economic weakness may be more severe or last
longer than we currently anticipated; and other information including
the “Risk Factors,” detailed from time to time in Diodes’ filings with
the United States Securities and Exchange Commission.
