Diodes Incorporated

Good afternoon and welcome to Diodes Incorporated First Quarter 2020 Financial Results Conference Call. At this time, all participants are in listen-only mode. At the conclusion of today's conference call, instructions will be given for the question and answer session. If anybody needs assistance at any time during the conference call, please press star followed by zero on your touchtone telephone. As a reminder, this conference call is being recorded today, Monday, May 11, 2020. I would now like to turn the call over to Leanne Seavers of Shelton Group Investor Relations. Leanne, please go ahead.

Good afternoon and welcome to DIODE's first quarter 2020 financial results conference call. I'm Leanne Seavers, president of Shelton Group, DIODE's investor relations firm. Joining us today are DIODE's president and CEO, Dr. Kei-Shu Liu, chief financial officer, Brett Whitmire, vice president of worldwide sales and marketing, Emily Yang, and director of investor relations, Laura Merle. Before I turn the call over to Dr. Liu, I'd like to remind our listeners that the results announced today are preliminary as they are subject to the company finalizing its closing procedures and customary quarterly review by the company's independent registered public accounting firm. As such, these results are unaudited and subject to revision until the company files its Form 10-Q for its first quarter, 2020. In addition, management's prepared remarks contain forward-looking statements which are subject to risks and uncertainties and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the company's filings with the SEC, including Forms 10-K and 10-Q. In addition, any projections as to the company's future performance represent management's estimates as of today, May 11, 2020. DAOs assumes no obligation to update these projections in the future as market conditions may or may not change, except to the extent required by applicable law. Additionally, the company's press release and management statements during this conference call will include discussion of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. Thank you, Deanne. Welcome, everyone.

and thank you for joining us today. I want to start by saying that I hope everyone and their family are staying safe in those unprecedented times for our economy and the world. Our top priority demands our people and DIOS has taken proactive measures to protect the safety, health and Will Means of our global associates. Our employees are successfully working remotely and remain in close contact with our suppliers, customers and partners. Our first quarter's results were in line with our original expectation and included the today star of our manufacturing productions following the extended Chinese New Year holiday. Our result further reflected the temporary closure of our UK wafer fabs in the Nepal March in response to the global COVID-19 pandemic. Our operation in China has since gradually returned to full production, with our UK facility also receiving full production as of today. Combined North America and Europe revenue grew more than 12% from 4Q to 1Q, while Asia revenue reclined 12% sequentially. because of certain expected customer manufacturing manpower recovery due to COVID-19. With revenue mean only slightly below typical seasonality and then limited only by customer demands. Our first quarter results serve as further testament to our long tracking record of successfully managing through challenging environments. Highlighting the quarter was our continued growth in the automotive end market. In switch, revenue grew sequentially and year-over-year to 11% of revenue. As a result, our increased content gains across our expanded customer base, including are significant new design wins in Asia. Additionally, our Pelcom IC products have the second-highest revenue quotas since the 2015 acquisition. Due to strong demand in the computing and market for our products used in high-end servers, storage, data centers, and notebooks, Our close engagement with customers has enabled us to benefit from the increasing demand for roads and equipment applications. The diversification and strength of our business and the long-standing relationship with customers continue to serve us well. as we focus on carefully managing those factors that are within our control. We currently expect to deliver second quarter revenue and margin slightly better than first quarter at the midpoint, which is notable given the increasing market uncertainty resulting from COVID-19. and the significant softness in the automotive market. Before turning the call over to Brett, I would like to provide a brief update on our proposed acquisition of Dion Semiconductor. Since our last earning call, at the end of March, we received all required regulatory approval. from Taiwan Authority, including Taiwan Fair Trade Commission, and the Foreign Investment Approval from the Investment Commission of the Ministry of Economic Affairs. We also extend the outside date, including in the seal swap agreement from May 31, 2020 to December 31, 2020 to accommodate the diffuse schedule for the relevant Chinese authorities and associate operation process that would need to be completed. The remains consistent with the previously communicated expected close date. With that, let me now turn the call over to Brett to discuss our first quarter financial result and our second quarter 2020 guidance in more detail.