Diodes Incorporated

Good afternoon and welcome to Diodes Incorporated's third quarter 2025 financial results conference call. At this time, all participants are in a listen-only mode and at the conclusion of today's conference call, instructions will be shared for the question and answer session. If anyone needs assistance at any time during the conference call, please press star key followed by the zero on your touchtone phone and an operator will assist you. As a reminder, this conference is being recorded today, Thursday, November 6th, 2025. I'd 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 third quarter 2025 financial results conference call. I'm Leanne Seavers, president of Shelton Group, Diode's investor relations firm. Joining us today are Diode's president and CEO, Gary Yu, CFO, Brett Whitmire, Senior Vice President of Worldwide Sales and Marketing, Emily Yang, and Vice President of Marketing and Investor Relations for Meet Dhaliwa. 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 in customary quarterly review by the company's independent registered public accounting firm. As such, stage results are unaudited and subject to revision until the company files its Form 10-Q for its quarter ended September 30th, 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 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 6, 2025. DODDS 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 of the DIODE's 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, revenue in the quarter increased 7% sequentially and 12% year-over-year, driven by strong demand across the general computing market, including for AI-related server applications, as well as data center and aging computing. Our global point of sales increased the strongest in Asia, followed by North America. Additionally, our channel inventory is at a healthy level, decreasing again this quarter in terms of dollars and weeks, with overall inventory dollar decreasing over 25% from peak levels. Even though the rate of recovery in the automotive and industrial market continues to be slower than expected, revenue increased both sequentially and year-over-year in both of these end markets. When coupled with the computing market growing the strongest along with the consumer also increasing sequentially, product mix unfavorably weighted on the gross margin during the quarter. Future margin expansion will be driven by ongoing improvement in the product mix as the pace of recovery accelerate in our higher margin automotive and industrial end markets, combined with increased new product introductions in all target markets, as well as improved loading across all manufacturing facilities. At the midpoint of fourth quarter guidance, we expect to achieve approximately 12% growth for the full year. Looking forward, we are gaining increasing confidence in broader demand improvement in the automotive and industrial market. DIOS is gaining increasing market share in the automotive market with new programs scheduled to launch early next year. Combined with increasing content in industrial applications like AI robotics, power management, medical, and factory automation. With that, let me now turn the call over to Brett to discuss our third quarter 2025 financial results, as well as our fourth quarter guidance in more detail.