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EXHIBIT 99.15
Diodes Incorporated
FOR IMMEDIATE RELEASE
Diodes, Inc. Reports Record Third Quarter Earnings
-- Net Income Up 176% --
Westlake Village, California, October 30, 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 revenues and earnings for the three and
nine months ended September 30, 2000.
Revenues for the third quarter increased 49% to $32.3 million, as compared to
$21.8 million for the comparable quarter in 1999. Operating income for the third
quarter rose 167% to $6.1 million, as compared to $2.3 million in the second
quarter of 1999. Net income for the same period rose 176% to $4.7 million, as
compared to $1.7 million for the three months ended September 30, 1999.
Sequentially, a planned discontinuation of lower margin wafer products resulted
in relatively flat revenue growth over the second quarter of this year.
Disregarding the wafer products, revenues of core products increased 5% from
last quarter.
Diluted earnings per share increased 142% to $0.50 for the third quarter of
2000, as compared to $0.21 for the same period last year.
For the first nine months of 2000, the Company earned a record $12.1 million, or
$1.31 per share, on record revenues of $92.4 million, compared to net income of
$3.2 million, or $0.40 per share, on revenues of $56 million for the same period
in 1999.
"Once again we are delighted to report another record quarter for Diodes," said
C.H. Chen, President and Chief Executive Officer of the Company. "These figures
demonstrate that our strategy of aggressive investment, quality products and a
customer-oriented culture is continuing to be reflected in a growing demand for
our product lines both here in the U.S. and in the increasingly significant
Asian marketplace."
Third Quarter Highlights:
Revenues of $32.3 million up 49% over the same period in 1999 Record net income
of $4.7 million increases 176% over same period last year Record nine month
revenues of $92.4 million, a 65% increase over last year Announces
customer-specific customization of its six-pin diode and transistor arrays Named
in annual Forbes list of 200 Best Small Companies in the U.S
Signs letter of intent to acquire wafer foundry in drive to become a vertically
integrated supplier of discrete semiconductors
Commenting further on the results, Chen went on to say, "This quarter we have
generated record earnings of $4.7 million, up 176% from the same period in the
prior year. This is Diodes' 42nd consecutive quarter of profitability, an
impressive record in the semiconductor industry. We have achieved this track
record through a strategy that combines fiscal discipline with flexible
production and pricing, giving us the ability to react to rapidly changing
market conditions. Over the past five years, we have demonstrated our ability to
outgrow and outperform the discrete semiconductor industry in both up and down
years."
Chen noted that the Company's gross profit margin rose to 34.4% in the third
quarter, as compared to 27.1% in the comparable quarter of 1999. This reflects
continuing demand for the Company's products, a shift to higher-margin devices,
and an increased contribution from products manufactured by Diodes-China. SG&A
expenses were 15.6% of net sales in the quarter compared to 16.7% in the third
quarter of 1999.
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"One key to our product quality and profitability has been our planned
investment of nearly $40 million in expanding our manufacturing facilities in
Mainland China, capacity that has already nearly been filled," continued Chen.
"Our facilities are state-of-the-art and industry certified, with an
exceptionally high level of product quality. This year Diodes-China will produce
approximately 2.1 billion units, up from 21 million in 1996. Manufacturing more
of what we sell gives us the opportunity to rapidly adjust our product mix to
meet market demands, while also improving our gross margins. The combination of
increased production capacity and an improved product mix caused margins
increase from 24.5% back in 1998 to over 34% in the most recent quarter."
Looking to the future, Chen noted, "We have a goal at Diodes, one that everyone
who works for the Company shares. That goal is to be an excellent world-class
company. What's more, we have a clear path of how to achieve these goals, and
have made significant strides over the course of this year in terms of
additional investment, improving our product lines, constant refinement in the
way we deliver value to our customers, and most importantly, our recent
announcement that we have signed a letter of intent to acquire the FabTech wafer
foundry. 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 thus allowing us to provide increased value for
our shareholders."
Join us for our conference call to be broadcast live at 9:00 am PST (12 noon
EST) today, on our Webcast at: http://www.vcall.com.
About Diodes Incorporated
Diodes, Inc. (Nasdaq: DIOD) is a leading manufacturer and supplier of
high-quality discrete semiconductor products, serving the communications,
computer, electronics and automotive markets. The Company operates two Far East
subsidiaries, Diodes-China (QS-9000 certified) in Shanghai and Diodes-Taiwan
(ISO-9000 certified) in Taipei. Diodes-China's manufacturing focus is on
surface-mount devices destined for wireless devices, notebook computers, pagers,
PCMCIA cards and modems, among others. Diodes-Taiwan is our Asia-Pacific sales,
logistics and distribution center. In addition, the Company signed a letter of
intent to acquire FabTech, Inc., a 5" wafer foundry located just outside Kansas
City, Missouri. 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 http://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 the Company's ability to consummate the acquisition of FabTech,
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.
Source: Diodes, Inc.
CONTACT: Crocker Coulson, Account Executive, Coffin Communications Group; (818)
789-0100 e-mail: [email protected] or Carl Wertz, Chief Financial
Officer, Diodes, Inc.; (805) 446-4800
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 Nine Months Ended
September 30, September 30,
------------------------------------- -------------------------------------
1999 2000 1999 2000
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 21,750,000 $ 32,332,000 $ 56,011,000 $ 92,369,000
Cost of goods sold 15,862,000 21,211,000 41,784,000 62,322,000
------------ ------------ ------------ ------------
Gross profit 5,888,000 11,121,000 14,227,000 30,047,000
Selling, general and administrative
expenses 3,636,000 5,050,000 10,132,000 14,862,000
------------ ------------ ------------ ------------
Income from operations 2,252,000 6,071,000 4,095,000 15,185,000
Other income (expense)
Interest income 87,000 128,000 226,000 323,000
Interest expense (141,000) (332,000) (444,000) (920,000)
Other 50,000 135,000 89,000 181,000
------------ ------------ ------------ ------------
(4,000) (69,000) (129,000) (416,000)
Income before income taxes and
minority interest 2,248,000 6,002,000 3,966,000 14,769,000
Provision for income taxes 510,000 1,170,000 647,000 2,197,000
Minority interest in joint venture earnings (54,000) (182,000) (120,000) (462,000)
------------ ------------ ------------ ------------
Net income $ 1,684,000 $ 4,650,000 $ 3,199,000 $ 12,110,000
============ ============ ============ ============
Earnings per share
Basic $ 0.22 $ 0.57 $ 0.42 $ 1.50
Diluted $ 0.21 $ 0.50 $ 0.40 $ 1.31
============ ============ ============ ============
Weighted average shares outstanding
Basic 7,571,237 8,101,667 7,570,983 8,053,675
Diluted 8,115,677 9,260,765 7,945,616 9,259,095
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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