Diodes Incorporated

Good afternoon and welcome to Diodes Incorporated third quarter 2020 financial results conference call. At this time, all participants are in a 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 zero on your touchtone phone. As a reminder, this conference call is being recorded today, Monday, November 9th, 2020. I would now like to turn the call over to Leanne Severs of Shelton Group Investor Relations. Leanne, please go ahead.

Good afternoon, and welcome to DIODE's third quarter 2020 financial results conference call. I'm Leanne Severs, president of Shelton Group, DIODE's investor relations firm. Joining us today are DIODE's chairman, president, and CEO, Dr. Kexi Liu, who is joining us from Taiwan, 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 in 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 third 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 filing for 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, November 9, 2020. DOD 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. Additional to the company's press release and management statements during this conference call, we'll 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, which provide additional details. Also, throughout the company's press release and management statements during this conference call, we refer to net income attributable to common stockholders as GAAP net income. For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 90 days in the Investor Relations section of DIODE's website at www.diodes.com. And now I'll turn the call over to DIODE's Chairman, President, and CEO, Dr. Kei-Shi Liu. Dr. Liu, please go ahead.

Thank you, Leanne. Welcome, everyone. And thank you for joining us today. Third quarter revenue was better than expected. and increased 7.2% sequentially driven by strong recovery in Asia followed by North America contributing to record revenue in automotive, consumer and computer and markets. Total worldwide point of sale revenue increased 19% sequentially and Rich are record in the quarter, trading by record POS revenue in Asia at 20% and 16% growth in both Europe and North America. Our record sales in automotive market grew 18% sequentially and over 5% year-over-year to 11% of total revenue, reflecting Diode's continued success in expanding application opportunities across new and existing customers, while further increasing Diode's semiconductor content per vehicle. Additionally, We continued to gain strong momentum with our Pelcom ICE product in both the automotive and computing markets. And we also saw a resurgence in the consumer market, which has increased approximately 30% from the first quarter of this year. In fact, Our total revenue has increased 10% from the first quarter of 2020. At the onset of the pandemic, with net income increasing approximately 35%, demonstrating both the resiliency of our business as well as the solid leverage in our operating model. We expect to further extend our growth momentum as we continue to see world-based improvement across our target end market and geographies, which, at the midpoint of our first quarter guidance, represented the highest quarter revenue in the company's history. This expectation excludes any contribution from our proposed acquisition of Nyon Semiconductors that is expected to close at the end of November. With that, let me now turn the call over to Brett to discuss our third quarter financial results. and our fourth quarter 2020 guidance in more detail.