Diodes (DIOD) Tops Q1 EPS by 3c

Diodes (NASDAQ: DIOD) reported Q1 EPS of $0.12, $0.03 better than the analyst estimate of $0.09. Revenue for the quarter came in at $222.7 million versus the consensus estimate of $224.3 million.

Commenting on the results, Dr. Keh-Shew Lu, President and Chief Executive Officer, stated, “During the first quarter, we achieved a 370 basis point sequential improvement in non-GAAP gross profit margin as a result of a full quarter of Pericom and improved product mix due to strong growth in our industrial and automotive end markets. In fact, revenue from our automotive market grew over 60 percent from first quarter 2015, reaching a record at 6 percent of revenue as we further expand our presence in this growing market. The broader semiconductor market experienced greater than typical negative seasonality in the quarter due primarily to weakness in PC’s and smartphones. Diodes’ revenue excluding Pericom performed better than the market due to increased content at key customers.

“The integration of Pericom remains on schedule from both a business unit and sales perspective, with these initiatives complete in North America and Europe. Our efforts are now focused on China and the rest of Asia, which should be completed within the second half of the year. We are working very closely with customers and the sales channel in order to maintain consistent work flow and production throughout this process. Overall, I am very pleased with the progress we have made so far and expect to further capitalize on cross-selling opportunities across a broader product portfolio and expanded customer base.

“As we look to the second quarter, we expect to grow revenue sequentially and reduce operating expenses as a percentage of sales as we benefit from additional cost synergies and operational efficiencies. Diodes has a proven track record of integrating acquisitions and realizing the full value of the combined businesses to drive long-term profitable growth, and we have made great strides towards achieving this success with Pericom.”

For earnings history and earnings-related data on Diodes (DIOD) click here.

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