Included in fourth quarter 2017 GAAP net income and non-GAAP adjusted net income was approximately $3.0 million, net of tax, of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP earnings per share (“EPS”) and non-GAAP adjusted EPS would have increased by $0.06 per share for fourth quarter 2017, $0.06 for third quarter 2017 and $0.02 for fourth quarter 2016.
EBITDA (a non-GAAP measure), which represents earnings before net interest expense, income tax, depreciation and amortization, for fourth quarter 2017, was $47.0 million, compared to $46.8 million for third quarter 2017 and $29.2 million for fourth quarter 2016. For a reconciliation of GAAP net income to EBITDA, see the table near the end of this release for further details.
For fourth quarter 2017, net cash provided by operating activities was a record $74.8 million. Net cash flow was a positive $2.6 million, including the $57.8 million long-term debt pay down and $8.7 million stock repurchase. Free cash flow (a non-GAAP measure) was $45.5 million, which includes $29.3 million of capital expenditures.
Balance Sheet
As of December 31, 2017, the Company had approximately $208.4 million in cash, cash equivalents and short-term investments, long-term debt (including the current portion) totaled approximately $268.1 million, and working capital was approximately $415.2 million.
The results announced today are preliminary, as they are subject to the Company finalizing its closing procedures and completion of the annual audit by the Company's independent registered public accounting firm. As such, these results are subject to revision until the Company files its Form 10-K for the year ending December 31, 2017.
Business Outlook
Dr. Lu concluded, “For the first quarter of 2018, we expect better than typical seasonal results due to continued strength in our target end markets. Revenue is expected to range between $261 million and $277 million, or down 2.8 percent to up 3.2 percent. At the midpoint, this is flat sequentially and represents a 13.8 percent increase year-over-year. We expect GAAP gross margin to be 36.0 percent, plus or minus 1 percent. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 23.2 percent of revenue, plus or minus 1 percent. We expect interest expense to be approximately $3.0 million. Our income tax rate is expected to be 31.0 percent, plus or minus 3 percent, and shares used to calculate diluted EPS for the first quarter are anticipated to be approximately 51 million.” Please note that purchase accounting adjustments of $3.8 million, after tax, for Pericom and previous acquisitions are not included in these non-GAAP estimates.
Conference Call
Diodes will host a conference call on Wednesday, February 7, 2018 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss its fourth quarter and full year 2017 financial results. Investors and analysts may join the conference call by dialing 1-855-232-8957 and providing the confirmation code 7497047. International callers may join the teleconference by dialing 1-315-625-6979 and entering 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 February 16, 2018 at midnight Central Time. The replay number is 1-855-859-2056 with a pass code of 7497047. 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, analog, and mixed-signal semiconductor
markets. Diodes serves the consumer electronics, computing,
communications, industrial, and automotive markets. Diodes’ products
include diodes, rectifiers, transistors, MOSFETs, protection devices,
function-specific arrays, single gate logic devices, 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 and
Milpitas, California. Design, marketing, and engineering centers are
located in Plano; Milpitas; Taipei, Taiwan; Taoyuan City, Taiwan; Zhubei
City, Taiwan; Manchester, England; and Neuhaus, Germany. Diodes’ wafer
fabrication facilities are located in Manchester and Shanghai, China.
Diodes has assembly and test facilities located in Neuhaus, Shanghai,
Jinan, Chengdu, and Yangzhou, China. Additional engineering, sales,
warehouse, and logistics offices are located in Taipei; Hong Kong;
Manchester; Shanghai; Shenzhen, China; Seongnam-si, South Korea; and
Munich, Germany, with support offices throughout the world.
