Diodes Incorporated

Good afternoon and welcome to DIODES Incorporated's third quarter 2022 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, Monday, November 7th, 2022. I would now like to turn the conference over to Leanne Seavers of Shelton Group Investor Relations. Leanne, please go ahead.

Good afternoon and welcome to DIODE's third quarter 2022 financial results conference call. I'm Leanne Seavers, president of Shelton Group, DIODE's investor relations firm. Joining us today from Taiwan are DIODE's chairman and president and CEO, Dr. Kei-Shu 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, Gurmeet 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 2022 fiscal quarter ending September 30, 2022. 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 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, November 7, 2022. DADS 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 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. Kashi Liu. Dr. Liu, please go ahead.

Thank you, Leanne. Welcome, everyone, and thank you for joining us today. I'm very pleased to be reporting today our fifth consecutive quarter of record gross margin, and the seventh consecutive quarter of record adjusted earnings per share and revenue. Our record results were driven by outstanding execution by the team. especially considering the COVID-related lockdown and the power outage in certain regions of China for part of the quarter. Also, contributing to our strong performance was the achievement of record revenue in our automotive and industrial end markets that together totaled 44% of product revenue, which is 4% points above our 2025 target model and above 40% of the third consecutive quarters. Dio's automotive business represented 16% of product revenue for the first time. reflecting the ongoing success of our customer and contact expansion initiatives, as well as sheer gain in this end market. Over the past several quarters, DAO has consistently proved its ability to execute during one of the most challenging supply chain environments that the industry has experienced and was still able to deliver multiple consecutive quarter of record results, expanding margin, and increased profitability. When looking back over the past two years, our revenue has grown 68%. Gross margin expanded 590 basis points. and just earning per share increased over 220%. Those achievements truly set DAO apart as consistent operator through diversified business and economic environment. We are well on our way toward our 2025 financial target of $2.5 billion in revenue and $1 billion in gross profit. With that, let me now turn the call over to Brad to discuss our third quarter financial results and our fourth quarter 2022 guidance in more detail.