Diodes Incorporated

Please wait. The conference will begin shortly. Thank you for standing by. My name is Jeannie and I will be your conference operator today. At this time, I would like to welcome everyone to the DIODES Incorporated third quarter and fiscal 2024 financial results conference column webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Leigh Ann Seavers. Please go ahead.

Good afternoon and welcome to DIAO's third quarter fiscal 2024 financial results conference call. I'm Leigh Ann Seavers, president of Shelton Group, DIAO's investor relations firm. Joining us today are DIODE's President Gary Yu, Chief Financial Officer Brett Whitmire, Senior Vice President of Worldwide Sales and Marketing Emily Yang, and Director of Investor Relations Grameet Dhaliwal. 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 reviews 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 10Q for its fiscal quarter ending September 30, 2024. 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. Action results may differ from those discussed today, and therefore, we refer you to a more detailed discussion of the risks and uncertainties and the company's filings with the Securities and Exchange Commission, including Forms 10-K and 10-Q. In addition, any projections of the company's future performance represent management's estimates of today, November 7, 2024. DOWS 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 We'll 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 attributed 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 DIA's website, at www.diaz.com. And now, I'll turn the call over to DIAZ President, Gary Yu. Gary, please go ahead.

Welcome, everyone, and thank you for joining us on today's conference call. Third quarter revenue exceeded our expectation, increased 9.5% sequentially, while also achieving double-digit POS growth in Asia. As further evidence on market recovery in Asia, our channel inventory continues to improve, as both inventory dollars and the inventory date decrease sequentially. Additionally, our automotive market revenue increased 18% sequentially to 19% of product revenue, reflecting our ongoing content expansion and design win initiatives, even though both the automotive and the industrial market continue to undergo inventory and demand adjustments. For the fourth quarter, we are guiding revenue to be better than typical seasonality. Our gross margin expectation continues to reflect factory underloading related to our waiver service agreement and internal demand. With sufficient capacity available to support future demand improvements, we took the initiative in third quarter to moderate our CapEx investment to below our target model. This action combined with our past cost reduction will help preserve near-term earnings and cash flow. until the recovery accelerates, especially in the higher margin automotive and industrial end markets. With that, let me now turn the call over to Brad to discuss our third quarter financial results as well as our first quarter guidance in more detail.