DIODES INC /DEL/ Q2 FY2025 earnings call

• Revenue for Q2 2025 was $366.2 million, up 14% y-o-y and 10% q-o-q. - Product sales increased sequentially across all regions with double-digit growth in Asia. - Channel inventory was reduced further, with both channel and internal inventory days decreasing. - Consumer end market experienced strongest growth during the quarter, contributing to less favorable product mix. - Automotive and industrial markets remained flat as a percentage of total revenue. - Extended new product initiatives with over 100 new part numbers introduced in Q2, over 50% of which were automotive parts.

In the second quarter of 2025, Diodes' revenue was $366.2 million, up 14% year-over-year and 10% sequentially. End markets: industrial accounted for 23% of product revenue, automotive 19%, computing 26%, consumer 18%, and communications 14%. Geographically, Asia represented 78% of revenue, Europe 12%, and North America 10%. Product sales increased sequentially across all regions with double-digit growth in Asia. Channel inventory days decreased, with total inventory days at approximately 173 at the end of the quarter, down from 187 last quarter.

• For Q3 2025, revenue is expected to increase to approximately $392 million, ±3%, representing 12% growth y-o-y at midpoint. - GAAP gross margin expected to be 31.6%, ±1%. - Non-GAAP operating expenses expected to be approximately 26% of revenue, ±1%. - Expected net interest income of approximately $1 million. - Effective income tax rate for full year expected to be approximately 18%, ±3%.

• Forward-looking statements subject to risks and uncertainties. - Market conditions may change, affecting actual results. - Inventory digestion in automotive market still has pockets remaining, which could impact future performance.

Q: How much of the demand in Asia is related to tariff-driven pull-ins?

A: Emily Yang stated that tariff-driven pull-ins are really small and immaterial overall, with demand driven by strong demand, market share gains, and new designs and programs ramping up.

Q: How should we look at pricing given peer companies raising prices?

A: Emily Yang said Diodes is monitoring the situation closely, focusing on long-term customer relationships, leveraging opportunities to gain share, and continuing to work with customers to expand partnerships and design wins.

Q: What's the timing on analog migrating back to in-house capacity?

A: Gary Yu mentioned proactive qualification of products and processes into internal wafer fab, with good progress and PCNs issued for key customers, and progress continuing well.