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Jun 30, 2023
Diodes Q2 2023 Earnings Report
Diodes' Q2 2023 performance saw flat revenue sequentially with record gross margin achieved.
Key Takeaways
Diodes Incorporated reported flat revenue sequentially at $467.2 million with a record gross margin of 41.8%. The Automotive and Industrial markets reached a record 48% of total product revenue. The recovery in the Asian market, especially in China, was slower than expected. The company reduced total debt by $34.4 million to $89 million as of June 30.
Revenue was $467.2 million, flat sequentially.
Gross margin reached a record 41.8% of revenue.
Automotive and Industrial product revenue reached a record 48% of total product revenue.
Generated strong cash from operations of $92.6 million and reduced total debt by $34.4 million.
Revenue by Geographic Location
Forward Guidance
For the third quarter of 2023, Diodes expects revenue to be approximately $425 million, plus or minus 3%. GAAP gross margin is expected to decrease sequentially to 40.0%, plus or minus 1%. Non-GAAP operating expenses are expected to be approximately 23% of revenue, plus or minus 1%.
Positive Outlook
- Ongoing strategy to improve sales and product mix.
- Growing revenue contribution from the Automotive and Industrial markets.
- Gross margin remains at target model.
- Focus on POS growth and depleting channel inventory.
- Strong design pipeline, especially in the Automotive market.
Challenges Ahead
- Expect to continue reducing channel inventory.
- Slower recovery in the consumer, computing, and communications markets.
- GAAP gross margin expected to decrease sequentially.
- Impact of manufacturing service agreements.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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