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EXHIBIT 99.10
Contact Information:
Coffin Communications Group Diodes Incorporated
15300 Ventura Boulevard, Suite 303 3050 E. Hillcrest Drive
Sherman Oaks, CA 91403 Westlake Village CA 91362
(818) 789-0100 (805) 446-4800
Crocker Coulson, Account Executive Carl Wertz, Chief Financial Officer
[email protected]
FOR IMMEDIATE RELEASE
Diodes, Inc. Posts Record Results for Second Quarter 2000
-- Net Income Up 424% --
Westlake Village, California, July 27, 2000 - Diodes Incorporated (Nasdaq:
DIOD), a leading manufacturer and supplier of high quality discrete
semiconductors, primarily to the telecommunications, computing, electronics and
automotive industries, today reported record revenues and earnings for the three
and six months ended June 30, 2000.
Revenues for the second quarter increased 79% to a record $32.6 million, as
compared to $18.2 million for the comparable quarter in 1999. Operating income
for the second quarter rose 396% to $5.2 million, as compared to $1.1 million in
the second quarter of 1999. Net income for the same period rose 424% to $4.3
million, as compared to $825,000 for the three months ended June 30, 1999.
Earnings per share reflects the effects of a three-for-two stock split announced
by the Company in June 2000. Diluted earnings per share increased 360% to $0.46
($0.69 pre-split) for the second quarter of 2000, as compared to $0.10 ($0.16
pre-split) for the same period last year. Sequentially, earnings per share of
$0.46 ($0.69 pre-split) compares to $0.34 ($0.51 pre-split) in the first quarter
of 2000.
For the first six months of 2000, the Company earned a record $7.5 million, or
$0.81 ($1.21 pre-split) per share, on record revenues of $60.0 million, compared
to net income of $1.5 million, or $0.19 ($0.29 pre-split) per share, on revenues
of $34.3 million for the same period in 1999.
Commenting on the Company's 41st consecutive quarter of profitability, C. H.
Chen, President and Chief Executive Officer of Diodes, said, "This continues to
be a year of significant milestones for Diodes. These figures represent the
highest recorded quarterly results in our Company's history and reflect a
growing demand for our products in key markets. They are a vindication of an
aggressive strategic investment policy, aimed at creating state-of-the-art
manufacturing facilities in Mainland China."
Second Quarter Highlights:
> Revenues of $32.6 million up 79% over the same period in 1999
> Net income of $4.3 million increases 424% over same period last year
> $4.5 million strategic investment in Diodes-China becomes fully operational
> $6.5 million manufacturing expansion will be fully realized in third
quarter 2000
> Announces additional $9.0 million investment in manufacturing facilities
> Stock begins trading on the Nasdaq National Market
> Declares three-for-two stock split; first stock split in Company's history
Chen noted that the Company's gross profit margin rose to 32.2% in the second
quarter, as compared to 24.3% in the comparable quarter of 1999. This increase
reflects robust demand for the Company's products and an increased contribution
from products manufactured by Diodes-China. SG&A expenses were 16.2% of net
sales in the quarter compared to 18.5% in the second quarter of 1999.
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"With capacity from our most recent expansion already sold out, the Company has
entered the next phase of our planned investment program," continued Chen. "This
will see expenditure of an additional $9 million, bringing our total investment
in the Diodes-China manufacturing facility to nearly $40 million. We are on
target to complete this phase by the first quarter of 2001 and expect it to
generate an increase in capacity of somewhere in the region of 35-45%. We expect
the additional expansion of our manufacturing capacity to better serve our
customers' needs and to fuel our continued growth. The outlook for Diodes and
the market as a whole remains positive."
Chen continued, "We are fully aware that the ongoing expansion of the Company
brings with it increasing responsibilities to our growing client and shareholder
base. Our mission at Diodes is to create a lean, flexible and service-focused
organization, capable of responding to our client needs and providing value to
our shareholders. We will work to continue our policy of introducing innovative,
cost-effective procedures in order to maximize the benefits of improving margins
on our world class product lines."
About Diodes Incorporated
Diodes, Inc. (Nasdaq: DIOD) is a leading manufacturer and supplier of
high-quality discrete semiconductor products, primarily to manufacturers of
telecommunications, computer, electronics and automotive products. The Company's
Far East subsidiaries, Diodes-China and Diodes-Taiwan, manufacture products for
sale to North America and Asia. Diodes-China focuses on surface-mount devices
destined for wireless devices, notebook computers, pagers, PCMCIA cards and
modems, among others, while Diodes-Taiwan focuses on products destined for a
broad base of end products including those in the automotive and electronics
industries. The Company's ISO-9000 corporate sales, marketing, engineering and
logistics headquarters is located in Southern California. For further
information, visit the Company's website at www.diodes.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995: Any statements set forth above that are not historical facts are
forward-looking statements that involve risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking
statements. Potential risks and uncertainties include, but are not limited to,
such factors as fluctuations in product demand, the introduction of new
products, the Company's ability to maintain customer and vendor relationships,
technological advancements, impact of competitive products and pricing, growth
in targeted markets, risks of foreign operations, and other information detailed
from time to time in the Company's filings with the United States Securities and
Exchange Commission.
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Recent news releases, annual reports, and SEC filings are available at the
Company's website: http://www.diodes.com. Written requests may be sent directly
to the Company, or they may be e-mailed to: [email protected].
CONSOLIDATED CONDENSED INCOME STATEMENT FOLLOWS
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DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
1999 2000 1999 2000
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 18,229,000 $ 32,600,000 $ 34,261,000 $ 60,037,000
Cost of goods sold 13,800,000 22,111,000 25,922,000 41,111,000
------------ ------------ ------------ ------------
Gross profit 4,429,000 10,489,000 8,339,000 18,926,000
Selling, general and administrative expenses 3,376,000 5,270,000 6,496,000 9,812,000
------------ ------------ ------------ ------------
Income from operations 1,053,000 5,219,000 1,843,000 9,114,000
Other income (expense)
Interest income 77,000 143,000 139,000 195,000
Interest expense (143,000) (372,000) (303,000) (588,000)
Other (9,000) 40,000 38,000 46,000
------------ ------------ ------------ ------------
(75,000) (189,000) (126,000) (347,000)
Income before income taxes and
minority interest 978,000 5,030,000 1,717,000 8,767,000
Provision for income taxes 120,000 535,000 137,000 1,027,000
Minority interest in joint venture earnings (33,000) (175,000) (66,000) (280,000)
------------ ------------ ------------ ------------
Net income $ 825,000 $ 4,320,000 $ 1,515,000 $ 7,460,000
============ ============ ============ ============
Earnings per share
Basic $ 0.11 $ 0.54 $ 0.20 $ 0.93
Diluted $ 0.10 $ 0.46 $ 0.19 $ 0.81
============ ============ ============ ============
Weighted average shares outstanding
Basic 7,570,856 8,072,885 7,570,856 8,029,413
Diluted 7,904,228 9,340,505 7,871,879 9,250,361
============ ============ ============ ============
</TABLE>
Note: Earnings per share and shares outstanding and been restated to reflect the
effect of a three-for-two stock split in July 2000.
