\nDiodes Incorporated (Diodes) (Nasdaq: DIOD) today reported its financial results for the first quarter ended March 31, 2023.<\/p>\n
First Quarter Highlights<\/b><\/p>\n \nCommenting on the results, Dr. Keh-Shew Lu, Chairman, President and Chief Executive Officer, stated, \u201cOur first quarter results were highlighted by continued strength in our gross margin performance, which was at the high-end of our guidance despite the seasonally lower revenue and economic slowdown in the consumer, communications and computing markets. In fact, gross margin has remained over 41% for the past four quarters and above our target model of 40%, underscoring our execution on new product initiatives and product mix improvements. A key contributor to our improved mix has been our success expanding into the automotive and industrial markets, which together represented a record 47% of total product revenue in the quarter. Another contributing factor to our consistent margin improvement is our manufacturing cost reductions and operational efficiencies, which have also allowed us to maintain healthy margins despite the COVID-related disruptions and the Chinese New Year holiday during the quarter.<\/p>\n \n\u201cOver the past several years, we have taken significant steps to transform our business as well as our customer and market positioning based on a total solutions sales approach, extensive pipeline of new product introductions and design wins. Today, Diodes has a diversified business across product groups, end markets and applications, as well as geographies that are further supported by a flexible manufacturing model and a team that is highly focused on consistent execution and sustainable quarterly performance. These fundamental factors position us well to not only sustain our margin profile during an economic slowdown, but also continue driving even higher profitability and cash flow in more favorable economic environments.\u201d<\/p>\n First Quarter 2023<\/b><\/p>\n \nRevenue for first quarter 2023 was $467.2 million, decreasing 3.1 percent from $482.1 million in the first quarter 2022 and down 5.8 percent from $496.2 million in the fourth quarter 2022.<\/p>\n \nGAAP gross profit for the first quarter 2023 was $194.5 million, or 41.6 percent of revenue, compared to $196.7 million, or 40.8 percent of revenue, in the first quarter of 2022 and $206.2 million, or 41.6 percent of revenue, in the fourth quarter 2022.<\/p>\n \nGAAP operating expenses for first quarter 2023 were $108.0 million, or 23.1 percent of revenue, and on a non-GAAP basis were $101.3 million, or 21.7 percent of revenue, which excludes $3.9 million of amortization of acquisition-related intangible asset expenses and $2.8 million related to officer retirement. GAAP operating expenses in the first quarter 2022 were $103.6 million, or 21.5 percent of revenue, and in the fourth quarter 2022 were $109.7 million, or 22.1 percent of revenue.<\/p>\n \nFirst quarter 2023 GAAP net income was $71.2 million, or $1.54 per diluted share, compared to GAAP net income in the first quarter 2022 of $72.7 million, or $1.59 per diluted share, and GAAP net income of $92.1 million, or $2.00 per diluted share, in the fourth quarter 2022.<\/p>\n \nFirst quarter 2023 non-GAAP adjusted net income was $73.4 million, or $1.59 per diluted share, which excluded, net of tax, $3.1 million of acquisition-related intangible asset costs, $2.3 million of officer retirement expenses and a $3.1 million gain related to an LSC investment. This compares to non-GAAP adjusted net income of $80.3 million, or $1.75 per diluted share, in the first quarter 2022 and $79.6 million, or $1.73 per diluted share, in the fourth quarter 2022.<\/p>\n \nThe following is an unaudited summary reconciliation of GAAP net income to non-GAAP adjusted net income and per share data, net of tax (in thousands, except per share data):<\/i><\/p>\n\n
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