Diodes Incorporated

Good afternoon and welcome to DIODE's Incorporated Second Quarter 2020 Financial Results Conference Call. At this time, all participants are on the listen-only mode. At the conclusion of today's conference call, instructions will be given for the question and answer session. If anyone needs assistance at any time during the conference call, please press the star key followed by the zero on your touch-tone telephone. As a reminder, this conference call has been recorded today Thursday, August 6, 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 second 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 chairman, president, and CEO, Dr. Kashi Liu, Chief Financial Officer, Brett Whitmire, Vice President of Worldwide Sales and Marketing, Emily Yang, and Director of Investor Relations, Laura Murrell. 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 second quarter of 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 Securities and Exchange Commission, 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, August 6, 2020. DIODE 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 discussions 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 Thank you, Deanne.

Welcome everyone, and thank you for joining us today. Second quarter revenue was better than expected, increased 2.8% sequentially, driven by market share gain across all key product groups, due to improving demand and design win momentum. Additionally, Our quota benefited from strong sequential and year-over-year growth in the consumer market for gaming consoles and IoT devices, as well as in the computing market as our Pelcom IC products continue to gain traction in high-end servers, storage, Data Center, and Notebooks, as well as in automotive applications. In fact, our Pelcom products achieved the second-highest revenue quarter since the acquisition. Our solid results reflect our team's ability to maintain a high level of efficiency and productivity despite The market disruption and the delay caused by the COVID-19 pandemic. Our performance also serves as a testament to our diversified product portfolio and the end markets, as well as solid positioning with non-standing tier one customers. Although The general market remains uncertain. We believe we were well-positioned to continue gaining market share in the third quarter and are focused on another quarter of sequential growth. In supporting of this growth, we took the initiative to build internal inventory, which also provided a level of assurance to our customers against possible supply disruption and shifting demand requirements due to the global pandemic. It is important to note that our distributor channel inventory was flat in the quarter and expected to be within our target range in the third quarter. In summary, I'm proud of our consistent performance and financial result achieved during those unprecedented times. Our total solution sale approach, combined with our test design with momentum, continues to pay dividends for our business as a trust supplier of the product to our customers. With that, Let me now turn the call over to Brett to discuss our second quarter financial result and our third quarter 2020 guidance in more detail.