Diodes Incorporated

Good afternoon and welcome to DIODE's Incorporated Fourth Quarter and Fiscal 2021 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 touchstone phone. As a reminder, this conference call is being recorded today Wednesday, February 9th, 2022. I would now like to turn the call over to Leanne Seavers of the Shelton Group Investor Relations. Leanne, please go ahead.

Good afternoon, and welcome to DIODE's fourth quarter and fiscal 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. Kashi 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, Vermeet 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-K for its 2021 fiscal year ending December 31, 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's estimates as of today, February 9, 2022. DAS 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, which provide additional details. Also throughout the company's press release and management statements during this conference call, we refer you 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-Shu Liu. Dr. Liu, please go ahead.

Thank you, Leanne. Welcome, everyone, and thank you for joining us today. Dow had a record year in 2021, deflecting sustained execution that consists of five consecutive quarters of record revenue, as well as seven consecutive quarters of adjusted earning growth. In fact, full-year revenue grew 47% and the gross profit grew 56%. with gap earning per share expanding 166%, and adjusted earning per share expanding 120%, demonstrating the significant operating leverage in our model. Additionally, gross margin expanded 610 basis points, from the first quarter of 2021, the first full quarter after completing the die-on semiconductor acquisition, to the fourth quarter of 2021. This increase was driven by a combination of product mix improvement, manufacturing efficiency, and improved learning. Also, contributing to our ongoing margin expansion has been the achievement of five consecutive quarters of Raker Pelcom revenue, three consecutive quarters of Raker International revenue, as well as six consecutive quarters of Raker Automotive revenue. which grew 59% in 2021 and reached a record 12% of total revenue for the full year. With a full year revenue of $1.8 billion and a gross profit of $0.7 billion, 2021 represented a significant step toward our 2025 target of $1 billion in gross profit on $2.5 billion revenue and 40% gross margin. In addition to the manufacturing synergies provided by the LLC acquisition, over these past years. We expect to realize expanded synergies across our product portfolio, customers, and the end market in the coming year to drive additional revenue growth and the gross margin expansion. With that, let me now turn the call over to Brad to discuss our fourth quarter financial results and our first quarter 2022 guidance in more detail.