Diodes Inc (DIOD) 2021 Q1 法說會逐字稿

Good afternoon, and welcome to Diodes Inc. First Quarter 2021 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Thursday, May 6, 2021.

下午好，歡迎來到 Diodes 公司。2021 年第一季財務業績電話會議。（操作員說明）謹此提醒，本次電話會議將於今天（2021 年 5 月 6 日星期四）錄製。

I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.

我現在想將電話轉給謝爾頓集團投資者關係部的 Leanne Sievers。莉安，請繼續。

Good afternoon, and welcome to Diodes First Quarter 2021 Financial Results Conference Call. I'm Leanne Sievers, President of Shelton Group, Diodes' Investor Relations firm.

下午好，歡迎參加 Diodes 2021 年第一季財務業績電話會議。我是 Leanne Sievers，Diodes 投資人關係公司 Shelton Group 的總裁。

Joining us today are Diodes Chairman, President and CEO, Dr. Keh-Shew Lu; Chief Financial Officer, Brett Whitmire; Senior Vice President of Worldwide Sales and Marketing; Emily Yang, Senior Vice President, Business Groups, Gary Yu; and Director of Investor Relations, Laura Mehrl.

今天加入我們的是 Diodes 董事長、總裁兼執行長 Keh-Shew Lu 博士；財務長布雷特·惠特米爾；全球銷售與行銷資深副總裁； Emily Yang，業務集團資深副總裁，Gary Yu；和投資者關係總監 Laura Mehrl。

Before I turn the call over to Dr. Lu, 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 10-Q for its first quarter 2021 ending March 31, 2021.

在我把電話轉給盧博士之前，我想提醒我們的聽眾，今天公佈的結果是初步的，因為這些結果取決於公司最終確定的結帳程序以及公司獨立註冊會計師事務所的慣例季度審查。因此，這些結果未經審計，並且可能會進行修訂，直到該公司提交截至 2021 年 3 月 31 日的 2021 年第一季 10-Q 表格。

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.

此外，管理層準備的言論包含前瞻性陳述，這些陳述存在風險和不確定性，管理層可能會針對您的問題做出額外的前瞻性陳述。因此，該公司聲稱受到 1995 年《私人證券訴訟改革法案》中包含的前瞻性陳述的安全港保護。實際結果可能與今天討論的結果有所不同，因此，我們建議您參閱公司向美國證券交易委員會提交的文件（包括表格 10-K 和 10-Q）中有關風險和不確定性的更詳細討論。

In addition, any projections as to the company's future performance represent management's estimates as of today, May 6, 2021. Diodes 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.

此外，對公司未來業績的任何預測均代表管理層截至今天（2021 年 5 月 6 日）的估計。由於市場條件可能會或可能不會發生變化，Diodes 不承擔在未來更新這些預測的義務，除非適用法律要求。

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 Diodes website at www.diodes.com.

此外，該公司在本次電話會議期間的新聞稿和管理層聲明將包括以公認會計原則和非公認會計原則術語討論某些措施和財務資訊。該公司的新聞稿中包括 GAAP 與非 GAAP 項目的定義和調節，其中提供了更多詳細資訊。此外，在本次電話會議期間公司的新聞稿和管理層聲明中，我們將歸屬於普通股股東的淨利潤稱為 GAAP 淨利潤。對於目前無法收聽整個電話會議的人士，可在 Diodes 網站 www.diodes.com 的投資者關係部分透過網路廣播提供為期 90 天的錄音。

And now I'll turn the call over to Diodes Chairman, President and CEO, Dr. Keh-Shew Lu. Dr. Lu, please go ahead.

現在我將把電話轉給 Diodes 董事長、總裁兼執行長 Keh-Shew Lu 博士。盧醫生，請講。

Thank you, Leanne. Welcome, everyone, and thank you for joining us today. Revenue in the first quarter set a new record, both organically and on a consolidated basis, increasing 18% sequentially and exceeding the high-end of our guidance range, in what has historically been a seasonally down quarter for our business.

謝謝你，莉安。歡迎大家，感謝您今天加入我們。第一季的收入無論是有機收入還是綜合收入都創下了新紀錄，環比增長 18%，超出了我們指導範圍的上限，而歷史上我們的業務一直是季節性下滑的季度。

Our growth was driven by record total POS revenue as a result of records in both Asia and Europe, combined with strong growth in North America. We also achieved records in our computing end market, driven by record telecom product revenue, and the automotive market due to strong organic growth in Diodes' automotive business. Combined with our expense management and operating efficiencies, we delivered the highest quarter of adjusted earnings per share, which increased 25% sequentially.

我們的成長是由亞洲和歐洲創紀錄的 POS 總收入以及北美的強勁成長所推動的。在創紀錄的電信產品收入的推動下，我們在計算終端市場和汽車市場也創下了記錄，這得益於 Diodes 汽車業務的強勁有機增長。結合我們的費用管理和營運效率，我們實現了調整後每股收益最高的季度，比上一季成長了 25%。

The integration of LSC is also progressing well and ahead of schedule, as we have already begun to harvest the benefit of manufacturing synergies from improved factory loading with both LSC's and Diodes' products. In fact, loading at the LSC facility has reached 70% in the quarter versus our original target of 50%, resulting in being operationally breakeven at this facility 2 quarters ahead of plan.

LSC 的整合也進展順利，並且提前完成，因為我們已經開始從 LSC 和 Diodes 產品的工廠負載改善中獲得製造協同效應的好處。事實上，LSC 設施的裝載率在本季度已達到 70%，而我們最初的目標是 50%，因此該設施比計劃提前 2 個季度實現了營運盈虧平衡。

Overall, our global manufacturing footprint is serving as a key advantage at a time when the broader semiconductor industry is challenged by supply and capacity constraints. We have both internal and external capacity needed to support the increasing demand we are seeing for our products. As a result, we expect to deliver another quarter of sequential growth in the second quarter, coupled with a continued expansion in bottom-line profitability.

總體而言，當更廣泛的半導體產業受到供應和產能限制的挑戰時，我們的全球製造足跡正在成為一個關鍵優勢。我們擁有所需的內部和外部能力來支持我們對產品日益增長的需求。因此，我們預計第二季將實現另一個季度的環比成長，同時淨利潤也將持續擴大。

With that, let me now turn the call over to Brett to discuss our first quarter financial results and our second quarter 2021 guidance in more detail.

現在，讓我將電話轉給 Brett，更詳細地討論我們第一季的財務業績和 2021 年第二季的指導。

Thanks, Dr. Lu, and good afternoon, everyone. As part of my financial review today, I will focus my comments on the sequential change for each of the line items and would refer you to our press release for a more detailed review of our results as well as the year-over-year comparisons.

謝謝盧博士，大家下午好。作為今天財務審查的一部分，我將集中評論每個項目的連續變化，並建議您參閱我們的新聞稿，以更詳細地審查我們的結果以及同比比較。

Revenue for the first quarter 2021 was a record $413.1 million, which included the first full quarter of revenue from LSC, an increase of 17.9% from the $350.4 million in fourth quarter 2020. Gross profit for the first quarter was also a record at $138.6 million or 33.6% of revenue on a consolidated basis and 36.3% for Diodes only. This compares to $122.7 million or 35% of revenue in the fourth quarter 2020.

2021 年第一季的收入達到創紀錄的 4.131 億美元，其中包括 LSC 第一個完整季度的收入，比 2020 年第四季的 3.504 億美元成長 17.9%。第一季的毛利也創歷史新高，達到 1.386 億美元，佔合併收入的 33.6%，僅 Diodes 的毛利為 36.3%。相較之下，2020 年第四季的營收為 1.227 億美元，佔營收的 35%。

GAAP operating expenses for the first quarter 2021 were $91.2 million or 22.1% of revenue and on a non-GAAP basis, were $86.4 million or 20.9% of revenue, which excludes $4 million of amortization of acquisition-related intangible asset expenses and $0.8 million of restructuring costs. This compares to non-GAAP operating expenses in the prior quarter of $75 million or 21.4% of revenue.

2021 年第一季的GAAP 營運費用為9,120 萬美元，佔營收的22.1%，以非GAAP 計算，營運費用為8,640 萬美元，佔營收的20.9%，其中不包括400 萬美元的收購相關無形資產攤銷和80 萬美元的無形資產攤提。重組成本。相比之下，上一季的非 GAAP 營運費用為 7,500 萬美元，佔營收的 21.4%。

Total other income amounted to approximately $2.6 million for the quarter, including $6 million of other income and $768,000 of interest income, partially offset by $2.9 million in interest expense and $1.3 million in foreign currency loss. Income before taxes and noncontrolling interest in the first quarter 2021 was $50 million compared to $36.1 million in the previous quarter.

該季度的其他收入總額約為 260 萬美元，其中包括 600 萬美元的其他收入和 768,000 美元的利息收入，部分被 290 萬美元的利息支出和 130 萬美元的外匯損失所抵消。2021 年第一季稅前及非控股權益前收入為 5,000 萬美元，上一季為 3,610 萬美元。

Turning to income taxes. Our effective income tax rate for the first quarter was approximately 18.9%. GAAP net income for the first quarter 2021 was $39.5 million or $0.87 per diluted share compared to GAAP net income of $29.7 million or $0.59 per diluted share in the fourth quarter 2020. The share count used to compute GAAP diluted EPS for the first quarter 2021 was 45.2 million shares, which reflects a reduction in the weighted average share count due to the repurchase of approximately 7.8 million Diodes shares from LSC as part of the acquisition.

轉向所得稅。我們第一季的有效所得稅率約為 18.9%。2021 年第一季的 GAAP 淨利潤為 3,950 萬美元，即稀釋後每股收益 0.87 美元，而 2020 年第四季的 GAAP 淨利潤為 2,970 萬美元，即稀釋後每股收益 0.59 美元。用於計算 2021 年第一季 GAAP 攤薄每股收益的股票數量為 4,520 萬股，這反映出由於作為收購的一部分從 LSC 回購約 780 萬股 Diodes 股票，導致加權平均股票數量減少。

Non-GAAP adjusted net income in the first quarter was $42 million or $0.93 per diluted share, which excluded net of tax $3.3 million of acquisition-related intangible asset costs, $1.5 million of acquisition-related costs, $0.7 million in restructuring costs and a $2.9 million gain in value of certain LSC investments. Non-GAAP adjusted net income in the fourth quarter 2020 was $37.3 million or $0.74 per diluted share.

第一季非GAAP 調整後淨利為4,200 萬美元，即稀釋後每股收益0.93 美元，其中扣除稅後330 萬美元的收購相關無形資產成本、150 萬美元的收購相關成本、70 萬美元的重組成本和2.9 美元的稅後淨利。某些 LSC 投資的價值收益為 100 萬美元。2020 年第四季非 GAAP 調整後淨利為 3,730 萬美元，或攤薄後每股收益 0.74 美元。

Included in first quarter 2021, GAAP net income and non-GAAP adjusted net income was approximately $4.8 million net of tax of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP earnings per share and non-GAAP adjusted EPS would have increased by $0.11 per diluted share for first quarter 2021 and $0.10 for the fourth quarter 2020.

計入 2021 年第一季度，公認會計準則淨利潤和非公認會計準則調整後淨利潤約為 480 萬美元（扣除非現金股份補償費用的稅後）。不包括基於股票的補償費用，2021 年第一季的 GAAP 每股收益和非 GAAP 調整後每股收益將增加 0.11 美元，2020 年第四季將增加 0.10 美元。

EBITDA for the first quarter was $81.7 million or 19.8% of revenue compared to $67.1 million or 19.1% of revenue in the prior quarter. We have included in our earnings release a reconciliation of GAAP net income to non-GAAP adjusted net income and GAAP net income to EBITDA, which provides additional details.

第一季的 EBITDA 為 8,170 萬美元，佔營收的 19.8%，而上一季的 EBITDA 為 6,710 萬美元，佔營收的 19.1%。我們在收益報告中納入了 GAAP 淨利潤與非 GAAP 調整後淨利潤以及 GAAP 淨利潤與 EBITDA 的調整表，其中提供了更多詳細資訊。

Cash flow generated from operations was $68.2 million for the first quarter 2021. Free cash flow was $51 million for the first quarter, which included $17.2 million for capital expenditures. Net cash flow in the first quarter was a positive $10.6 million, which included a paydown of $37.4 million of long-term debt.

2021 年第一季營運產生的現金流為 6,820 萬美元。第一季自由現金流為 5,100 萬美元，其中包括 1,720 萬美元的資本支出。第一季淨現金流為正 1,060 萬美元，其中包括償還 3,740 萬美元的長期債務。

Turning to the balance sheet. At the end of first quarter, cash, cash equivalents, restricted cash plus short-term investments totaled approximately $339 million. Working capital was $618 million and total debt, including long-term and short term, was $415 million.

轉向資產負債表。截至第一季末，現金、現金等價物、限制性現金加上短期投資總計約 3.39 億美元。營運資金為 6.18 億美元，總債務（包括長期和短期）為 4.15 億美元。

In terms of inventory, at the end of first quarter, total inventory days decreased to approximately 98 in the quarter on a consolidated basis as compared to 115 last quarter. Finished goods inventory days also decreased to 27 from 31 in the fourth quarter 2020. Total inventory dollars decreased $17.1 million to approximately $290 million. Total inventory in the quarter consisted of an $18.2 million decrease in raw materials, a $3.5 million decrease in finished goods and a $4.6 million increase in work in process.

庫存方面，第一季末，本季合併總庫存天數由上季的115天減少至約98天。產成品庫存天數也從 2020 年第四季的 31 天減少至 27 天。庫存總額減少了 1,710 萬美元，降至約 2.9 億美元。本季的總庫存包括原材料減少 1820 萬美元、製成品減少 350 萬美元以及在製品增加 460 萬美元。

Capital expenditures on a cash basis for the first quarter 2021 were $17.2 million or 4.2% of revenue. We expect to remain within our target model of 5% to 9% for the full year.

2021 年第一季以現金為基礎的資本支出為 1,720 萬美元，佔營收的 4.2%。我們預計全年成長將保持在 5% 至 9% 的目標模型內。

Now turning to our outlook. For the second quarter of 2021, we expect revenue to increase to approximately $434 million, plus or minus 3%, which represents a record on both an organic and a consolidated basis for a combined increase of 5% sequentially at the midpoint. We expect GAAP gross margin on a consolidated basis to be 35.6%, plus or minus 1%. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 20.5% of revenue, plus or minus 1%.

現在轉向我們的展望。對於 2021 年第二季度，我們預計營收將增至約 4.34 億美元，正負 3%，這在有機和合併基礎上創下了中點綜合增長 5% 的記錄。我們預期 GAAP 合併毛利率為 35.6%，上下浮動 1%。非 GAAP 營運費用（即針對收購相關無形資產攤銷進行調整的 GAAP 營運費用）預計約為收入的 20.5%，上下浮動 1%。

We expect net interest expense to be approximately $1.6 million. Our income tax rate is expected to be 19%, plus or minus 3%, and shares used to calculate diluted EPS for the second quarter are anticipated to be approximately $45.7 million. Please note that purchasing accounting adjustments of $3.3 million after-tax for Pericom and previous acquisitions is not included in these non-GAAP estimates.

我們預計淨利息支出約為 160 萬美元。我們的所得稅稅率預計為 19%，正負 3%，用於計算第二季稀釋每股收益的股票預計約為 4,570 萬美元。請注意，這些非 GAAP 估計中不包括 Pericom 和先前收購的 330 萬美元稅後採購會計調整。

With that said, I will now turn the call over to Emily Yang.

話雖如此，我現在將電話轉給艾蜜莉楊。

Thank you, Brad, and good afternoon. The 17.9% sequential increase in the first quarter revenue was better than the high end of our guidance, driven by the record direct revenue increased more than 30% and record POS revenue up more than 10%, led by POS records in Asia and Europe combined with strong growth in North America. Distributor inventory in terms of weeks decreased quarter-over-quarter and below our defined normal range of 11 to 14 weeks.

謝謝你，布拉德，下午好。第一季營收季增 17.9%，優於我們指導的上限，這是由創紀錄的直接收入成長超過 30% 和創紀錄的 POS 收入成長超過 10%（以亞洲和歐洲的 POS 記錄為首）推動的北美地區成長強勁。經銷商庫存週數較上季下降，低於我們定義的 11 至 14 週的正常範圍。

Looking at the global sales in the first quarter. Asia represented 81% of the revenue; Europe, 12%; and North America, 7%. In terms of our end markets, computing represented 30% of the revenue; industrial, 22%; consumer, 19%; communication, 17%; and automotive, 12% of revenue. We achieved record revenue in automotive end market, which was strong across all regions and the computing market, driven by record Pericom revenue.

看看第一季的全球銷售。亞洲佔收入的81%；歐洲，12%；北美為 7%。就我們的終端市場而言，計算佔收入的 30%；工業，22%；消費者，19%；溝通，17%；和汽車業，佔收入的 12%。我們在汽車終端市場取得了創紀錄的收入，在 Pericom 創紀錄收入的推動下，該市場在所有地區和計算市場都表現強勁。

Now let me review the end market in greater details. Starting with our automotive market. Our record revenue achieved in the quarter reflects an 18% sequential increase and 61% year-over-year increase to 12% of total revenue. This growth was driven by strong organic growth for Diodes of automotive products with minimal contribution from LSC since this product has low exposure to this market.

現在讓我更詳細地回顧一下終端市場。從我們的汽車市場開始。我們本季實現的創紀錄營收比季增 18%，年增 61%，佔總營收的 12%。這一成長是由汽車產品 Diodes 的強勁有機成長所推動的，而 LSC 的貢獻很小，因為該產品在該市場的曝光度較低。

We also continue to gain contact with our expanded automotive portfolio of Pericom products as we secured several new design-ins for our interface and frequency control product in the automotive applications, ranging from ADAS, infotainment, telematics and DASH Board systems.

我們也繼續與 Pericom 擴展的汽車產品組合取得聯繫，因為我們為汽車應用中的介面和頻率控制產品獲得了多項新的設計，包括 ADAS、資訊娛樂、遠端資訊處理和 DASH 板系統。

During the quarter, we introduced several new automotive-grade products, including USB switches, IO expanders and 14 new frequency control products for the in-vehicle infotainment system, connected driving, lighting and body control applications.

本季度，我們推出了幾款新的汽車級產品，包括 USB 開關、IO 擴展器和 14 種用於車載資訊娛樂系統、連網駕駛、照明和車身控制應用的新頻率控制產品。

We also introduced a 2-wire automotive LED hall sensor and over 20 DC-to-DC products with design-ins and design wins and multiple customers in the infotainment power supplies, lighting, instrument clusters, telematics and ADAS applications. We also secured additional design wins for gate drivers, LED drivers and voltage regulators with major car manufacturers in applications like wireless charging, lighting and DC-DC for electric vehicles.

我們還推出了2 線汽車LED 霍爾感測器和20 多種DC-DC 產品，這些產品已獲得設計和設計勝利，並在資訊娛樂電源、照明、儀表板、遠端資訊處理和ADAS 應用領域擁有多個客戶。我們還與主要汽車製造商在電動車的無線充電、照明和 DC-DC 等應用中贏得了閘極驅動器、LED 驅動器和電壓調節器的額外設計。

Also during the quarter, we saw very strong demand for our protection devices in automotive fusible links, HDMI, LVDS and data line protection. Higher voltage battery system drove up the demand for our MOSFET products. Also released 2 new MOSFETs in the TOLL package to help address the power efficiency demand. We also released 3 channel linear LED drivers, 7 new SBR product and 5 volt bipolar transistor automotive product during the quarter. SBR SKY product was designed-in by a number of customers in the EV battery management system, car headlight, display, onboard computer and portable power bank applications.

同樣在本季度，我們看到汽車熔絲、HDMI、LVDS 和數據線保護領域對我們的保護元件的需求非常強勁。更高電壓的電池系統推動了對我們 MOSFET 產品的需求。也發布了 2 個採用 TOLL 封裝的新型 MOSFET，以協助滿足電源效率需求。本季度我們還發布了 3 通道線性 LED 驅動器、7 個新的 SBR 產品和 5 伏特雙極電晶體汽車產品。SBR SKY產品由多家客戶設計用於電動車電池管理系統、汽車前燈、顯示器、車用電腦和便攜式行動電源應用。

In our industrial market, we also achieved very healthy revenue growth of 13% sequentially and 25% over the prior year. Similar to the automotive market, revenue contribution from LSC is very minimal, which highlights the strong growth and momentum Diodes has continued to achieve in the industrial market.

在我們的工業市場，我們也實現了非常健康的收入成長，環比成長 13%，比上年增長 25%。與汽車市場類似，LSC 的營收貢獻非常小，凸顯了 Diodes 在工業市場持續實現的強勁成長和動能。

During the quarter, we saw increasing demand for our Wide Vin LDO product family for applications such as power tools, e-meters, IoT and other industrial applications. We have also seen an increasing number of design wins for linear voltage regulators in DC fans to support applications such as mining machines, communication, MCUs and IT systems.

本季度，我們看到電動工具、電子電錶、物聯網和其他工業應用等應用對寬輸入電壓 LDO 產品系列的需求不斷增加。我們也看到越來越多的直流風扇線性穩壓器設計獲勝，以支援採礦機、通訊、MCU 和 IT 系統等應用。

Additionally, we saw more design-ins for SBR and Trench Schottky in applications like industrial router, lighting and heavy machinery. Diodes' MOSFET products continued to gain market share in lots of DC inverter applications, and our success with LED driver chipset continued with new design-ins for commercial lighting projects.

此外，我們在工業路由器、照明和重型機械等​​應用中看到了更多 SBR 和溝槽肖特基的設計。Diodes 的 MOSFET 產品在許多直流逆變器應用中繼續獲得市場份額，並且我們在 LED 驅動晶片組方面的成功繼續透過商業照明專案的新設計而得以實現。

We also released our 8-port/8-Lane PCI Express 3.0 packet switch, which is designed to meet the need of industrial PC market to improve signal reliability and increase bandwidth performance.

我們也發表了8埠/8通道PCI Express 3.0分組交換機，旨在滿足工業PC市場提高訊號可靠性和增加頻寬效能的需求。

In the consumer market, we saw strong demand for our Piezo sound driver due to tracker market growth. We also continue to expand our business for USB power delivery decoder in OEM-ODM quick charger applications. TV and monitor design wins also continue to represent a large opportunity for our BJT products, and we have very good design win activities for very small transistors into robotic vacuum cleaners and doorbells. In addition, we continue to build traction for our products in IoT, smart home and entertainment applications.

在消費市場，由於追蹤器市場的成長，我們看到對壓電聲音驅動器的強勁需求。我們也持續擴大 OEM-ODM 快速充電器應用中 USB 供電解碼器的業務。電視和顯示器設計的勝利也繼續代表著我們 BJT 產品的巨大機會，而且我們在機器人吸塵器和門鈴等非常小的晶體管方面開展了非常好的設計獲勝活動。此外，我們繼續為我們的產品在物聯網、智慧家庭和娛樂應用領域打造吸引力。

For the communication market, we saw traction from several Schottky and SBR products in the satellite radio, 5G routers, access point routers and power over Ethernet switches. Demand for our Pericom product remains strong as high-speed data processing drove the ramping of 200, 400, 800 gig connection. Pericom frequency control products, ultra-low jitter, small size crystal oscillator family, have several design-ins into optical modules. We also released more than 11 new devices in frequency control product family for communication applications.

對於通訊市場，我們看到了衛星廣播、5G 路由器、存取點路由器和乙太網路供電交換器領域的多種肖特基和 SBR 產品的吸引力。隨著高速資料處理推動 200、400、800 gig 連線的成長，對 Pericom 產品的需求依然強勁。Pericom 頻率控制產品、超低抖動、小尺寸晶體振盪器系列，有多種設計融入光學模組中。我們也發布了超過 11 款用於通訊應用的頻率控制產品系列新裝置。

Also during the quarter, our high PSRR LDO product family and omnipolar hall sensors continue to achieve design wins and design-ins in smartphones. Our low saturated high-voltage transistors would be signed into routers, IP cams and optical network application.

同樣在本季度，我們的高 PSRR LDO 產品系列和全極霍爾感測器繼續在智慧型手機中取得設計勝利和設計成果。我們的低飽和高壓電晶體將用於路由器、IP 攝影機和光網路應用。

Lastly, in the computing market, revenue increased 54% quarter-over-quarter and 160% year-over-year to a quarterly record, primarily driven by record Pericom revenue combined with initial revenue contribution from LSC products. New design-in activity continues in the PC segment, along with increased demand of our existing Pericom products, driven by the growth across all the platforms, including consumer, education and commercial PCs. In the quarter, we released 3 1.8 volt ReDrivers servicing to USB Type-C and DisplayPort for PCs and 2 additional HDMI ReDrivers for high-speed media applications. Continuous demand for high-resolution display, propelled our HDMI/DP ReDriver product to other unit volume peak. New USB power switch product for USB-A and USB-C ports achieved solid revenue growth, driven by strong market demand for notebooks. Our design-in momentum continued for Dual-unipolar Hall sensor, ESD total solutions for USB Type-C, flash LED driver and the Schottky products in the notebooks, tablets and storage applications.

最後，在計算市場，收入環比增長 54%，同比增長 160%，創下季度紀錄，這主要是由創紀錄的 Pericom 收入以及 LSC 產品的初始收入貢獻推動的。新的設計活動在 PC 領域繼續進行，同時我們現有 Pericom 產品的需求也不斷增加，這是由消費者、教育和商用 PC 等所有平台的成長所推動的。在本季度，我們發布了 3 個為 PC 的 USB Type-C 和 DisplayPort 提供服務的 1.8 伏特轉接驅動器，以及另外 2 個用於高速媒體應用的 HDMI 轉接驅動器。對高解析度顯示器的持續需求，推動我們的 HDMI/DP ReDriver 產品達到其他單位體積的峰值。在筆記型電腦市場強勁需求的推動下，適用於 USB-A 和 USB-C 連接埠的新型 USB 電源開關產品實現了穩健的收入成長。我們在雙單極霍爾感測器、USB Type-C 的 ESD 整體解決方案、閃存 LED 驅動器以及筆記型電腦、平板電腦和儲存應用中的肖特基產品方面繼續保持設計勢頭。

Also during the quarter, in computing market, we released close to 100 new power TVS, High Search dataline protection and power stage products for power line and VBUS protection for notebooks, mobile phones, panels and charger applications.

同樣在本季度，在運算市場，我們發布了近 100 款新型功率 TVS、High Search 線保護和功率級產品，用於筆記型電腦、手機、面板和充電器應用的電源線和 VBUS 保護。

In summary, we are very pleased with our strong start to the new year, led by above seasonal growth resulting in record first quarter revenue. Additionally, record POS as well as low channel and internal inventory indicate a strong second quarter with continued increasing in growth and profitability. We have already begun to realize the initial benefit of the manufacturing synergy from the LSC acquisition with significant opportunities for upside by capitalizing the additional synergies across products, customers and end markets.

總而言之，我們對新的一年的強勁開局感到非常滿意，在高於季節性增長的帶動下，第一季收入創紀錄。此外，創紀錄的 POS 以及較低的通路和內部庫存顯示第二季表現強勁，成長和獲利能力持續成長。我們已經開始實現收購 LSC 帶來的製造協同效應的初步效益，並透過利用跨產品、客戶和終端市場的額外協同效應獲得巨大的上升機會。

With that, we now open the floor to questions. Operator?

現在我們開始提問。操作員？

(Operator Instructions) Our first question comes from the line of Matt Ramsay from Cowen.

（操作員說明）我們的第一個問題來自 Cowen 的 Matt Ramsay。

Impressive results for sure. Dr. Lu, I wonder if you might give us a bit of a more detailed status upgrade of the integration on the operations side with LSC. You I think mentioned in your brief prepared comments that you're now at 70% utilization in those facilities. It's certainly a good environment to have extra capacity, given the tightness in the industry. So if you could give us a little bit of an update there and how you see that utilization rate of those facilities trending in the next couple of quarters?

結果肯定令人印象深刻。盧博士，我想知道您能否為我們介紹一下與LSC在營運方面的整合的更詳細的狀態升級。我想您在準備好的簡短評論中提到，您現在這些設施的利用率為 70%。考慮到行業的緊張狀況，這無疑是一個擁有額外產能的好環境。那麼，您能否為我們提供一些最新情況，以及您如何看待這些設施在未來幾季的使用率趨勢？

Yes. Let me get Gary. He is in charge for the LSC integration to answer your question.

是的。讓我去找加里。他負責LSC整合來回答你的問題。

Yes. Hi, everybody, this is Gary. I'm new to this conference call. Okay. And to answer your question, yes, we do see the improvement by the facility usage increased a lot in the second quarter. And we will continue loading our factory in the next couple of quarters, and we will see more realization in the third and the fourth quarter.

是的。大家好，我是加里。我是這次電話會議的新手。好的。回答你的問題，是的，我們確實看到第二季設施使用情況有了很大改善。我們將在接下來的幾個季度繼續為工廠裝貨，我們將在第三和第四季看到更多的實現。

Got it. Welcome to the call. And as my follow-up question, I guess, for the whole team, it's been some very impressive growth, both consolidated inorganically, but no secret that there's a lot of different points of capacity tightness across the industry. Diodes happens to be in a position to have some extra foundry capacity, which is great. But maybe you could calibrate us a little bit on how other things in the market may be affecting the upside that you can continue to deliver? I'm thinking about things like testing capacity, packaging, wafers, substrates and even limitations of supply of some of your peer companies that may sell into the same cars or end market devices. If there's anybody you could calibrate how the environment is out there versus the strength that your company is seeing, that would be much appreciated.

知道了。歡迎來電。作為我的後續問題，我想，對於整個團隊來說，這是一些非常令人印象深刻的成長，兩者都是無機整合的，但眾所周知，整個行業存在著許多不同的產能緊張點。Diodes 恰好能夠擁有一些額外的代工能力，這非常棒。但也許您可以對我們進行一些調整，以了解市場上的其他因素可能如何影響您可以繼續提供的上行空間？我正在考慮諸如測試能力、封裝、晶圓、基板等問題，甚至是一些可能向相同汽車或終端市場設備銷售的同行公司的供應限制。如果有人可以根據您公司的實力來校準外部環境，我們將不勝感激。

Okay. The most constraint of the capacity is the wafer fab. And fortunately, half of our wafer fab requirements, our wafer requirement is coming from our internal wafer fab support. And another advantage or another, fortunately, is because in 2019, we acquired the fab from Texas Instruments, we call GFAB, and that GFAB provide us a very big additional internal capacity.

好的。產能的最大限制是晶圓廠。幸運的是，我們一半的晶圓廠需求來自我們內部晶圓廠的支援。幸運的是，另一個優勢是因為我們在 2019 年從德州儀器 (TI) 收購了晶圓廠，我們稱之為 GFAB，GFAB 為我們提供了非常大的額外內部產能。

And the other one is we are ramping up the, we call SFAB2, which is in Shanghai, when we acquired BCD, and that is the fab we are getting. And now we are ramping up for the 8-inch section of the SFAB2. So those 2 fabs are helping us a lot for the wafer requirements.

另一個是我們正在加大力度，我們稱之為 SFAB2，它位於上海，當時我們收購了 BCD，這就是我們正在獲得的晶圓廠。現在我們正在加大 SFAB2 8 英吋部分的開發力道。因此，這兩家晶圓廠在滿足晶圓需求方面為我們提供了許多幫助。

Then in addition, when we purchased LSC, and LSC fab is underloaded. If you remember, we're just talking about that, when we acquired it was 50% loading. So we now, like Gary was talking about, in 1Q it's already up to 70%, then we'll continue increase the capacity or the utilization for that LSC fab.

另外，當我們購買LSC時，LSC工廠負載不足。如果您還記得的話，我們只是在談論這一點，當我們獲得它時，它的負載率為 50%。所以我們現在，就像 Gary 所說的那樣，在第一季已經達到 70%，然後我們將繼續增加 LSC 工廠的產能或利用率。

So overall, we really have good room to grow our revenue by the ramp-up or utilize more of our internal fab. Then, yes, since we are able to get more support from our external fabs, so overall, we see some constraint, but it's not very severe to us. And you can see that in our revenue growth, continued revenue growth in 1Q and continue to 2Q, and we are able to continue to support us in the future -- the rest of the year.

因此，總的來說，我們確實有很大的空間透過增加或利用更多的內部晶圓廠來增加我們的收入。然後，是的，由於我們能夠從外部晶圓廠獲得更多支持，所以總的來說，我們看到了一些限制，但對我們來說並不是很嚴重。你可以看到，在我們的收入成長中，第一季和第二季的收入持續成長，我們能夠在未來——今年剩下的時間——繼續支持我們。

Okay. And then the rest of it since assembly, again, majority is our own factory. So we do continue to expand our assembly capacities. So we don't really see a major limitation for our expansion for the revenues. And the rest of it is really a minor constraint. Therefore, I think Diodes has performed much better than our competitor due to we have a lot of our internal manufacturing capability.

好的。然後剩下的組裝部分，同樣，大部分是我們自己的工廠。因此，我們確實繼續擴大我們的組裝能力。因此，我們並沒有真正看到我們收入擴張的主要限制。其餘的確實是一個小限制。因此，我認為 Diodes 的表現比我們的競爭對手要好得多，因為我們擁有大量的內部製造能力。

The results speaks for themselves.

結果不言而喻。

Our next question comes from the line of William Stein from Truist Securities.

我們的下一個問題來自 Truist Securities 的 William Stein。

Part of it was answered a moment ago, but I'm maybe looking for more -- maybe the word is a more forceful view. Everyone else is -- all the other companies are talking very clearly about capacity constraints. It sounds like they're not as problematic for you because of your internal capacity. Are you seeing lead times in aggregate stretch either because the company is having trouble delivering on some parts? Or because customers are willing to place orders at longer lead times? Are you seeing that dynamic in your business? And if so, maybe how far out in the future are we stretching today?

剛才已經回答了一部分，但我可能正在尋找更多——也許這個詞是一個更有力的觀點。其他所有人——所有其他公司都非常清楚地談論產能限制。由於你的內在能力，聽起來對你來說它們並不是什麼問題。您是否因為公司在交付某些零件時遇到困難而導致總交貨時間延長？還是因為顧客願意在更長的交貨時間內下訂單？您在您的企業中看到這種動態嗎？如果是這樣，也許我們今天的未來有多遠？

Right. This is Emily. Let me answer the question. So we've definitely seen the overall market constraint, right? We have very, very strong book-to-bill ratio. We have extremely strong backlog across all the regions. And just like I reported, we have very, very strong POS result as well. So definitely, we've seen a little bit of the imbalance of supply and demand in the market. So I want to make sure we're seeing that as well. What we've been doing is actually we are overcoming different bottlenecks by working very closely with the customers to understand their true demand, right? So definitely, we are seeing longer, I'll say, bookings, right? People -- the lead time is stretching a little bit longer. But I've been emphasizing, it's not really about the lead time, it's really true demand understanding from the customer by working closely with them. So we're definitely seeing longer visibility for the backlog point of view. So yes.

正確的。這是艾米麗。讓我來回答這個問題。所以我們肯定已經看到了整體市場的限制，對嗎？我們的訂單出貨比非常非常高。我們在所有地區都有非常多的積壓訂單。正如我所報導的，我們的 POS 結果也非常非常強勁。因此，我們確實看到了市場上的供需不平衡的情況。所以我想確保我們也看到了這一點。我們一直在做的實際上是透過與客戶密切合作來克服不同的瓶頸，了解他們的真實需求，對嗎？所以，我會說，我們肯定會看到更長的預訂時間，對嗎？人們——交貨時間有點長了。但我一直強調，這並不是真正的交貨時間，而是透過與客戶密切合作來真正了解客戶的需求。因此，我們肯定會看到積壓工作的可見度更長。所以是的。

One other, if I can. An idea that's been sort of discussed in the semi industry for some years is competition from local China-based manufacturers. And there's, I think, a new JV announced in the last couple of days between Yageo and Foxconn to produce small ICs. Not necessarily about that potential future competitors specifically, but if you can characterize the competitive threats generally and specifically about sort of local new entrants in the market in China?

如果可以的話，再來一張。多年來半導體產業一直在討論的一個想法是來自中國本土製造商的競爭。我認為國巨和富士康在過去幾天宣布成立新的合資企業，生產小型 IC。不一定是專門針對潛在的未來競爭對手，但您是否可以概括地描述競爭威脅，特別是針對中國市場的本地新進入者？

Right. So definitely. We -- I mean new competitors coming from China is nothing new. We've been seeing that, I would say, situation for a while already. Like I mentioned before, what we usually see these kind of competitors really more on the low end of the product or the technology. So over the years, Diodes has been implementing a strategy of actually walking away from this kind of deep commodity market areas. So what we've been doing is actually continue to improve our technology and continue to drive the product mix to the higher end side, right?

正確的。所以絕對是。我們——我的意思是來自中國的新競爭對手並不是什麼新鮮事。我想說，我們已經看到這種情況有一段時間了。就像我之前提到的，我們通常看到的這類競爭對手實際上更多的是在產品或技術的低端。所以多年來，Diodes一直在實施實際上遠離這種深層商品市場領域的策略。那麼我們一直在做的實際上就是不斷改進我們的技術，不斷推動產品結構朝更高端的方向發展，對嗎？

So I would say, even having more competition in the low end area, doesn't really have a big impact for the overall Diodes' business, actually it fits better with our new strategy because that has been our direction for the last few years.

所以我想說，即使在低端領域有更多的競爭，對 Diodes 的整體業務也不會產生太大的影響，實際上它更適合我們的新策略，因為這是我們過去幾年的方向。

Yes. I would add few words is we -- what we -- another strategy we did is convert our sales from the commodity or individual sale to the content or total solution sales with the very big or very strong, very wide product portfolio. And through all the past history of M&A, we are now -- our product portfolio is very completed and very wide range. And therefore, it gives us an advantage when we go to the customer, when we approach to the total solution. And the new star company or China company, typically, they are not able to have a very wide range of a completed of the product portfolio. And so this -- we watch out for our competitor coming, but we apply our strength of the wide range product portfolio.

是的。我想補充幾句話，我們所做的另一項策略是將我們的銷售從商品或個人銷售轉變為具有非常大或非常強大、非常廣泛的產品組合的內容或整體解決方案銷售。透過過去所有的併購歷史，我們現在的產品組合非常完整且範圍非常廣泛。因此，當我們接觸客戶、尋求整體解決方案時，它就為我們帶來了優勢。而新星公司或中國公司，通常，他們不能夠擁有非常廣泛的完整的產品組合。因此，我們警惕競爭對手的到來，但我們利用廣泛產品組合的優勢。

I think this just gives the credit for our past history of the M&A and to enable us to now participate to the customer solution by using our wide range of product portfolio.

我認為這只是對我們過去的併購歷史的認可，並使我們現在能夠透過使用我們廣泛的產品組合參與客戶解決方案。

Congratulations on the excellent results.

祝賀取得優異成績。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question comes from the line of Tristan Gerra from Baird.

我們的下一個問題來自貝爾德 (Baird) 的特里斯坦·格拉 (Tristan Gerra)。

I think I heard that about 50% of your production is outsourced currency. And I think that's mostly on the analog side following the years ago, Kansas City shutdown. Are you expecting to meaningfully change over the next few years and increase the percentage of your manufacturing that's going to be in-sourced, notably as you now have more capacity in-house between SFAB2, GFAB and Lite-On?

我想我聽說你們的生產大約有 50% 是外包貨幣。我認為這主要是在幾年前堪薩斯城關閉之後的模擬方面。您是否期望在未來幾年內進行有意義的改變並增加內包製造的比例，特別是因為您現在在 SFAB2、GFAB 和 Lite-On 之間擁有更多的內部產能？

Yes. And let me answer your question. Definitely, we are going to have additional capacity that we can have a good control. But Dr. Lu mentioned about from years ago, we acquired BCD, so we have a SFAB. And GFAB we acquired from TI, we get a 6-inch and 8-inch wafer fab in Scotland. And also, just recently, we merged with Lite-On Semi and we have 6-inch wafer fab and 4-inch wafer fab in the Hsinchu and Keelung in Taiwan.

是的。讓我回答你的問題。當然，我們將擁有額外的能力，以便我們能夠更好地控制。但是盧博士提到，從幾年前開始，我們獲得了BCD，所以我們有了SFAB。我們從TI收購了GFAB，在蘇格蘭擁有一座6吋和8吋晶圓廠。而且，就在最近，我們與光寶半導體合併，我們在台灣的新竹和基隆擁有6吋晶圓廠和4吋晶圓廠。

So we are still looking for the good candidate with a good capacity to increase internally in the future. So that probably is very soon, and we will have newer capacity, maybe okay. But definitely, just our direction to increase internal capacity and reduce the outside support for subcons.

因此，我們仍在尋找具有良好未來內部發展能力的優秀候選人。所以這可能很快，我們將擁有更新的容量，也許可以。但毫無疑問，這只是我們增加內部產能並減少對分包商的外部支援的方向。

Okay. And then given the relative supply advantage you have versus peers and given some larger analog companies or deemphasizing certain products being supply constrained. Do you basically see market share gains as you're basically taking on products that some of your peers are either deemphasizing on purpose, so not able to serve the market with?

好的。然後考慮到您相對於同業的相對供應優勢，並考慮到一些較大的模擬公司或淡化某些產品的供應限制。您基本上是否看到了市場佔有率的成長，因為您基本上採用了一些同行故意淡化的產品，因此無法為市場提供服務？

Yes, definitely. When the capacity is very high and demand is very strong and whoever the company has a capacity will win the business.

當然是。當產能非常高、需求非常旺盛的時候，誰有產能，誰就能贏得業務。

Right. So let me just add a little bit on top of that. I think Tristan is -- it's all about balancing, right? So keep in mind, our strategy doesn't really change. What we've been focusing is content expansion, right? So we want to continue to expand the product into the customer and continue to expand our customer base, right? So right now, it's an interesting dynamic of the market, but does not take away our long-term focus as a company. So what our focus is to continue with our total solution sales, continue to improve our product mix, right?

正確的。所以讓我在此基礎上補充一點。我認為特里斯坦——一切都是為了平衡，對吧？因此請記住，我們的策略並沒有真正改變。我們一直在關注的是內容擴展，對嗎？所以我們要繼續把產品拓展到客戶中，繼續擴大我們的客戶群，對吧？所以現在，這是一個有趣的市場動態，但並沒有影響我們作為一家公司的長期關注。那麼我們的重點是繼續我們的整體解決方案銷售，繼續改進我們的產品組合，對吧？

So that is actually the reason because we do have a very clear goal by 2025 that we want to achieve $2.5 billion, right? So I would say, yes, there's short term, I would say, variations for the demand and supply in balance, but that does not take away our long-term strategy of the product mix improvement as well as content expansion.

這其實就是原因，因為我們確實有一個非常明確的目標，就是到 2025 年我們要實現 25 億美元，對吧？所以我想說，是的，短期內供需平衡會出現變化，但這並不會影響我們改善產品組合和內容擴展的長期策略。

(Operator Instructions) Our next question comes from the line of David Williams from Loop Capital.

（操作員說明）我們的下一個問題來自 Loop Capital 的 David Williams。

Congrats on the solid progress. I guess I wanted to see maybe if you could help size up maybe your backlog or maybe any color around the math of velocity of the orders through the quarter. Just kind of how you've seen orders tracking? And how you think about that as we move through this quarter or maybe into the third quarter?

祝賀取得了紮實的進展。我想我想看看您是否可以幫助確定您的積壓訂單或有關本季度訂單速度數學的任何顏色。您是如何看待訂單追蹤的？當我們進入本季或可能進入第三季時，您對此有何看法？

Okay. David, let me answer your question. So we do actually continue to see strong book-to-bill ratio, much higher than one. And we -- like I reported in the Q1 results, right, we have seen very strong POS results and the record POS from Asia as well as for Europe. Even for North America, we're actually seeing very, very strong net momentum, grow more than 20%.

好的。大衛，讓我回答你的問題。因此，我們確實繼續看到強勁的訂單出貨比，遠高於 1。正如我在第一季業績中所報告的那樣，我們看到了非常強勁的 POS 業績，以及亞洲和歐洲創紀錄的 POS 業績。即使對於北美，我們實際上也看到了非常非常強勁的淨勢頭，成長超過 20%。

If I look at the direct POP business point of view, the OEM business, I also mentioned we actually grow more than 30%, right? So based on all this data and based on the strong backlog that we currently have on the book, so overall, I would say the market is very, very strong across all the regions and also across all the segments.

如果我看直接POP業務的角度，OEM業務，我也提到我們實際上成長了30%以上，對吧？因此，根據所有這些數據以及我們目前在這本書上積壓的大量訂單，總的來說，我想說，所有地區和所有細分市場的市場都非常非常強勁。

So within the segments, we're definitely seeing continued extra strong strength from the automotive, and we're also seeing very good momentum in the industrial continue to recover and the computing will continue to be strong. I think even in consumer and communications, we are also seeing very strong backlog as well.

因此，在各個細分市場中，我們肯定會看到汽車產業持續強勁的勢頭，我們也看到工業持續復甦的良好勢頭，計算將繼續強勁。我認為即使在消費者和通訊領域，我們也看到了非常大量的積壓。

In addition, if you look at our -- the inventory from our distributor is very low. Okay. We're typically looking for 11 to 14 weeks of the distributor inventory, and we are now even below the 11 weeks. So in addition, the POS, strong POS, the inventory use or low inventory is actually going to indicate a very strong business in the future.

此外，如果你看看我們——我們經銷商的庫存非常低。好的。我們通常需要 11 至 14 週的經銷商庫存，而現在甚至低於 11 週。此外，POS、強大的 POS、庫存使用或低庫存實際上表明未來的業務非常強勁。

Okay. All right. And then maybe just from your customers, do you get a sense that they are being fairly rational in terms of their orders? Obviously, double bookings are a thing and may not mean much. But do you get a sense that maybe they're becoming a little more rational in their ordering and understanding the lead times and placing orders that are in line with what the real dynamics are?

好的。好的。然後，也許僅從您的客戶那裡，您是否感覺到他們的訂單相當理性？顯然，重複預訂是一件事情，但可能意義不大。但是您是否感覺到他們在訂購、理解交貨時間以及下達符合實際動態的訂單方面可能變得更加理性了？

Yes. So I think, like I mentioned before, we work very closely with the Tier 1, Tier 2 customers, to understand their true demand. What we see is, is very rational. But going through the distribution side, the Tier 3, Tier 4 is not something we have the bandwidth to work with each individual customer to understand it. So how we measure it is actually, we look at the POS resell. We look at the channel inventory. So with all this data, I would say, overall, the business seems really solid and strong overall.

是的。所以我認為，就像我之前提到的，我們與一級、二級客戶密切合作，以了解他們的真實需求。我們看到的是，非常理性。但從分銷方面來看，我們沒有足夠的頻寬與每位客戶合作來理解第 3 層、第 4 層。所以我們實際上是如何衡量它的，我們看的是 POS 轉售。我們來看看渠道庫存。因此，根據所有這些數據，我想說，總體而言，該業務總是看起來非常穩固和強大。

This does conclude the question-and-answer session of today's program. I'd like to hand the program back to management for any further remarks.

今天節目的問答環節到此結束。我想將該程序交還給管理層以徵求進一步的意見。

Thank you for your participation on today's call. Operator, you may now disconnect.

感謝您參加今天的電話會議。接線員，您現在可以斷開連接了。

Thank you. And thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

謝謝。女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。