Diodes Incorporated

Good afternoon and welcome to Diodes Incorporated 3rd Quarter 2021 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 anyone needs assistance at any time during the conference call, please press star followed by zero on your touchtone phone. As a reminder, this conference call is being recorded today, Wednesday, November 3rd, 2021. 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 third quarter 2021 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. 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, Ramit Dhaliwal. 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 third quarter 2021 ending September 30th. In addition, the 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, November 3, 2021. Dowd's assumes no obligation to update those projections in the future as market conditions may or may not change 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, 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 DIAO'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. This quarter represented the fourth consecutive quarter of record revenue and our second consecutive quarter of gross margin expansion over $210 billion. basis point resulting in record gross margin and profits. Underpin our growth has been the success of our content expansion initiatives in particularly in automotive market where revenue grew over 65% year over year and 7% sequentially. contributing to an eight-year CAGR of 30%. Additionally, our Pelcom products continued to set new revenue records, achieving four consecutive quarters of growth, primarily driven by traction in high-end computing and several applications. Our growth in those Higher margin and markets, combined with increased loading at our live-on semiconductor facilities, have enabled us to increase our top-line revenue and margins. Even in the midst of this supply-constrained environment, DIO is favorable positioned with a global manufacturing footprint. that provides the flexibility to strategically expand our capacity and reduce cost, either by adding equipment to existing lines or converting equipment to larger wafers. These ongoing actions are expected to support our continued growth and margin improvement into next year and toward our 2025 target of $1 billion in gross profit on $2.5 billion in revenue and a 40% gross margin. With that, Let me now turn the call over to Brett to discuss our third quarter financial results and our fourth quarter 2021 guidance in more detail.