Diodes Incorporated

Good afternoon and welcome to DIODE Incorporated fourth quarter and fiscal 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 the zero on your touchtone phone. As a reminder, this conference call is being recorded today, Tuesday, February 16th, 2021. 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 fourth quarter and fiscal 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. Kashi Liu, chief financial officer, Brett Whitmire, senior 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-K for its 2020 fiscal year ending December 31, 2020. In addition, management 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 question. 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 of 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, February 16, 2021. 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 statement 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, 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. Keishu Liu. Dr. Liu, please go ahead.

Thank you, Deanne. Welcome, everyone, and thank you for joining us today. We ended the year achieving the highest quarterly revenue in companies' history, even excluding the revenue contribution from our acquisition of Dione Semiconductor that closed on November 30th. Total organic revenue grew 7.8% sequentially and 10.7% year-over-year, demonstrating the continued success of our product, content, and customer expansion initiatives. Revenue from our Pelican products and automotive market also reached record levels. with automotive revenue growing 24% sequentially and 40% year-over-year, both of which contributed to our solid market share gains in the quarter. All of those accomplishments are notable achievements, especially concerning the ongoing global pandemic. Following the successful completion of AOC acquisition, the integration process has been advancing smoothly. On December 1st, we initially announced the new operation structure for the commanding companies and they named it Gary Yu, Senior Vice President, who is in charge of all the business group and also has been tested with all integration activities. We have been actively working to qualify dial products in the LSC factory and expect to begin making production start in the middle of this year with the expectation of Exyn 2021 with significant momentum in this area. In regard to the product, customer, and in-market synergy, those are multi-year efforts that span the product development process by working closely with our customer and serving them with our combined product portfolio. As mentioned in our annual release today, the LSE business was immediately accredited to our result, earning two cents per share on a non-GAAP basis in the fourth quarter. As I just mentioned, we believe LSE also offers future opportunities for synergetic growth. and expansion across our end market, product offering, customer, and the manufacturing footprint. In addition to road synergies, the repurchasing of 14.7% of dialed share that was previously hauled by LLC which drive additional earning powers when combined with diode solid operating leverage. As we look to the first quarter, we expect to further extend this strong momentum and, once again, set a new revenue and growth profit record with sequential growth projected both organically and on a consolidated basis in what has previously been a seasonally down quarter for our business. This anticipated growth is being driven by record POS revenue in the fourth quarter. We look forward to reporting our ongoing progress and the remaining focus on integrating the LLC business via capitalizing on the long-term opportunities for continued growth and ending expansion. With that, let me now turn the call over to Brett to discuss our first quarter financial result and our first quarter 2021 guidance in more detail.