Diodes Incorporated

Good afternoon and welcome to DIOS, Incorporated's second quarter 2025 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, Thursday, August 7, 2025. I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.

Good afternoon and welcome to DIOS, Second Quarter 2025 Financial Results conference call. I'm Leanne Sievers, President of Shelton Group, DIOS Investor Relations firm. Joining us today are DIOS President and CEO Gary Yu, CFO Brett Whitmire, Senior Vice President of Worldwide Sales and Marketing Emily Yang, and Director of Investor Relations for Meet DOLOL. 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 10Q for its quarter ended June 30, 2025. 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 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 10K and 10Q. In addition, any projections as to the company's future performance represent management's estimates as of today, August 7, 2025. DIADS 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 DIADS website at .diodes.com. And now I'll turn the call over to DIADS President and CEO, Gary Yu. Gary, please go ahead.

Welcome everyone and thank you for joining us on today's conference call. As announced in our press release earlier today, our above EXPECT revenue results represent our third consecutive quarter of -over-year growth, indicating the ongoing improvement in market conditions and demand. Product sales increased sequentially across all regions with double-digit growth in Asia. The increasing demand in the quarter also contributed to channel inventory being reduced further, with both channel and internal inventory days decreasing. While we continue to see positive signs of a broader market recovery, our consumer end market experienced the strongest growth during the quarter, contributing to less favorable product mix combined with our higher-margin automotive and industrial markets remain flat as a percentage of total revenue. Additionally, the channel inventory depletion continued to limit increased loading at our manufacturing facilities, resulting in underloading costs also being a headwind to growth margin expansion. Even when considering those dynamics, we continue to increase gross profit dollar and deliver gross of almost 70% sequentially as we continue to closely manage expenses. As we look to the third quarter, we expect to extend our strong growth momentum with revenue anticipated to increase 7% sequentially and at 12% -over-year at a midpoint, mainly driven by strong demand in Asia for AI-related computing applications and the increasing demand in the EV automotive market in China. With that, let me now turn the call over to Brad to discuss our second quarter 2025 financial results as well as our third quarter guidance in more detail.