Diodes Incorporated reported a strong third quarter with revenue exceeding expectations, driven by growth in Asia and the automotive market. The company is moderating capital expenditure investments to preserve earnings and cash flow amidst ongoing inventory and demand adjustments in the automotive and industrial markets. For Q4, the company expects revenue to be better than typical seasonality.
Third quarter revenue increased 9.5% sequentially, exceeding expectations, with double-digit POS growth in Asia.
Automotive market revenue increased 18% sequentially, representing 19% of product revenue, driven by content expansion and design win initiatives.
Channel inventory improved in Asia, with sequential decreases in both inventory dollars and days.
For the fourth quarter, revenue is guided to be better than typical seasonality.
For the fourth quarter of 2024, Diodes expects revenue to be approximately $337 million, plus or minus 3%. GAAP gross margin is expected to be 33%, plus or minus 1%. Non-GAAP operating expenses are expected to be approximately 28% of revenue, plus or minus 1%.
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