Diodes Incorporated

Welcome to the Diodes Incorporated's second quarter 2021 financial results conference call. My name is Vanessa, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. During the question and answer session, if you have a question, please press star then one on your touchtone phone. I will now turn the call over to Leanne Sievers of Shelton Group Investors.

Good afternoon and welcome to Diode's second quarter 2021 financial results conference call. I'm Leanne Sievers, President of Shelton Group, Diode's investor relations firm. Joining us today are Diode's Chairman, President and CEO, Dr. K. Hsu Liu, Chief Financial Officer, Brett Whitmire, Senior Vice President of Worldwide Sales and Marketing, Emily Yang, Senior Vice President of Business Groups, Gary Yu, 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 2021 ending June 30th, 2021. 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 estimates as of today, August 5th, 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 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 to 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. Kexu Liu. Dr. Liu, please go ahead.

Thank you, Leanne. Welcome, everyone, and thank you for joining us today. Our record second quarter performance across all functional metrics is a testament to our strong execution and global manufacturing footprint, enabling us to meet the growing demand for our product. Our growth was once again driving by record global POS revenue, as well as record revenue in the automotive, industrial, and the consumer end markets, especially in IoT, combined with record revenue in the computing market. driven by our Pelcom product for IMPC, servo, and data center applications. DIOS' continuous success in those markets contributed to gross margin expansion in the quarter of 270 basis points sequentially. and also reflected the continued improvement in the loading at the die-on semiconductor facility. In fact, loading at the LC facility reached 87% in a quarter, which is approximately six months ahead of the original planned ramping schedule. Further highlighting our result was the achievement of record GAAP and non-GAAP net income, as well as EBITDA, which increased 22% sequentially to almost 23% of revenue. The highly accredited LLC acquisition, together with our significant operating leverage, drove adjusted earning per share for the first six months of 2021 to more than double the adjusted EPS reported in the same period of 2020. And with our expression for another quarter of record result in the third quarter driven by strong global demand, a variable capacity due to previous acquisition and internal manufacturing expansions, and improve product dynamics. We are all positioned to deliver continued growth, increasing profitability, and shareholder value. Our achievement of year-over-year revenue growth of 53% and the gross profit increased 57% this quarter, representing a major step toward our long-term goal of $2.5 billion in revenue and $1 billion in gross profit by year 2025. With that, let me now turn the call over to Brett to discuss our second quarter financial results and our third quarter 2021 guidance in more detail.