Diodes Inc. (DIOD, Financial) filed Quarterly Report for the period ended 2009-03-31.
Diodes Incorporated is a leading manufacturer and supplier of high-quality discrete and analog semiconductor products primarily to the communications computing industrial consumer electronics and automotive markets. The Company's corporate sales marketing engineering and logistics headquarters is located in Southern California with two manufacturing facilities in Shanghai China a wafer fabrication plant in Kansas City Missouri engineering sales warehouse and logistics offices in Taipei Taiwan and Hong Kong and sales and support offices throughout the world. Diodes Inc. recently acquired Anachip Corporation a fabless analog IC company in Hsinchu Science Park Taiwan. It's product focus is on subminiature surface-mount discrete devices analog power management ICs and Hall-effect sensors all of which are widely used in end-user equipment. Diodes Inc. has a market cap of $551.8 million; its shares were traded at around $13.33 with a P/E ratio of 13.7 and P/S ratio of 1.3. Diodes Inc. had an annual average earning growth of 28% over the past 5 years.
Interest expense for the three months ended March 31, 2009 was approximately $2.0 million, compared to $1.6 million in the same period last year. The $0.4 million increase in interest expense is due primarily to the interest expense charged in connection with our no net cost loan with the offsetting interest earned being recorded in interest income. The increase in interest expense was partially offset by the reduced interest paid due to the repurchase and retirement of $56.1 million par value of Notes during the fourth quarter of 2008 and first quarter of 2009.
Amortization of debt discount for the three months ended March 31, 2009 was $2.2 million, compared to $2.6 million in the same period last year. The amortization of debt discount was recorded in accordance with FSP ABP 14-1. The $0.4 million decreased in amortization of debt discount was due primarily to the repurchase and retirement of $56.1 million par value of Notes during the fourth quarter of 2008 and first quarter of 2009. See Note N of the Notes to Consolidated Condensed Financial Statements for information regarding FSP APB 14-1.
Other income for the three months ended March 31, 2009 was $0.3 million, compared to other expense of $0.3 million in the same period last year. Included in other income for the three months ended March 31, 2009 was a: (i) $1.5 million gain from extinguishment of debt (we repurchased $9.6 million of our Notes for approximately $6.6 million resulting in a $1.5 million pre-tax gain); and (ii) $2.0 million foreign currency transaction losses due primarily to the strengthening of the U.S. dollar versus the British Pound, negatively affecting foreign currency hedges entered into by Zetex prior to our acquisition, partially offset by $0.5 million in foreign currency transaction gains due primarily to favorable Taiwan and China currency exchange rate changes during the period.
Cash and cash equivalents decreased from $103.5 million at December 31, 2008, to $93.2 million at March 31, 2009 primarily due to the repurchase of $9.6 million principal amount Convertible Senior Notes for approximately $6.6 million in cash.
Net cash provided by operating activities for the three months ended March 31, 2009 was $6.8 million, resulting primarily from a $15.8 million reduction in inventory as well as $13.7 million in depreciation and amortization, offset partially by a $16.6 million reduction in accounts payable. Net cash provided by operating activities was $9.9 million for the same period last year. Net cash provided by operating activities decreased $3.1 million for the three months ended March 31, 2009 compared to the same period last year. This decrease resulted primarily from an approximately $11.8 million decrease in liabilities and a $23.4 million decrease in net income, partially offset by an approximately $30.8 million increase in assets. We continue to closely monitor our credit terms with our customers, while at times providing extended terms, primarily required by our customers in Asia and Europe.
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Diodes Incorporated is a leading manufacturer and supplier of high-quality discrete and analog semiconductor products primarily to the communications computing industrial consumer electronics and automotive markets. The Company's corporate sales marketing engineering and logistics headquarters is located in Southern California with two manufacturing facilities in Shanghai China a wafer fabrication plant in Kansas City Missouri engineering sales warehouse and logistics offices in Taipei Taiwan and Hong Kong and sales and support offices throughout the world. Diodes Inc. recently acquired Anachip Corporation a fabless analog IC company in Hsinchu Science Park Taiwan. It's product focus is on subminiature surface-mount discrete devices analog power management ICs and Hall-effect sensors all of which are widely used in end-user equipment. Diodes Inc. has a market cap of $551.8 million; its shares were traded at around $13.33 with a P/E ratio of 13.7 and P/S ratio of 1.3. Diodes Inc. had an annual average earning growth of 28% over the past 5 years.
Highlight of Business Operations:
SG&A for the three months ended March 31, 2009 increased approximately $1.6 million, or 10.4%, compared to the same period last year, due primarily to additional SG&A expense related to the Zetex operations. The following expense categories increased, mainly due to additional Zetex SG&A expenses: (i) $2.1 million increase in facility expense, depreciation, supplies and other operating expenses, (ii) $0.1 million increase in wages and related benefits, including share-based compensation, and (iii) $0.1 million increase in communication and travel expense, offset by $0.8 million decrease in marketing and selling expenses related to decreased sales and as part of our cost reduction initiatives. SG&A as a percentage of sales, increased to 20.6% for the three months ended March 31, 2009, compared to 15.2% in the same period last year.Interest expense for the three months ended March 31, 2009 was approximately $2.0 million, compared to $1.6 million in the same period last year. The $0.4 million increase in interest expense is due primarily to the interest expense charged in connection with our no net cost loan with the offsetting interest earned being recorded in interest income. The increase in interest expense was partially offset by the reduced interest paid due to the repurchase and retirement of $56.1 million par value of Notes during the fourth quarter of 2008 and first quarter of 2009.
Amortization of debt discount for the three months ended March 31, 2009 was $2.2 million, compared to $2.6 million in the same period last year. The amortization of debt discount was recorded in accordance with FSP ABP 14-1. The $0.4 million decreased in amortization of debt discount was due primarily to the repurchase and retirement of $56.1 million par value of Notes during the fourth quarter of 2008 and first quarter of 2009. See Note N of the Notes to Consolidated Condensed Financial Statements for information regarding FSP APB 14-1.
Other income for the three months ended March 31, 2009 was $0.3 million, compared to other expense of $0.3 million in the same period last year. Included in other income for the three months ended March 31, 2009 was a: (i) $1.5 million gain from extinguishment of debt (we repurchased $9.6 million of our Notes for approximately $6.6 million resulting in a $1.5 million pre-tax gain); and (ii) $2.0 million foreign currency transaction losses due primarily to the strengthening of the U.S. dollar versus the British Pound, negatively affecting foreign currency hedges entered into by Zetex prior to our acquisition, partially offset by $0.5 million in foreign currency transaction gains due primarily to favorable Taiwan and China currency exchange rate changes during the period.
Cash and cash equivalents decreased from $103.5 million at December 31, 2008, to $93.2 million at March 31, 2009 primarily due to the repurchase of $9.6 million principal amount Convertible Senior Notes for approximately $6.6 million in cash.
Net cash provided by operating activities for the three months ended March 31, 2009 was $6.8 million, resulting primarily from a $15.8 million reduction in inventory as well as $13.7 million in depreciation and amortization, offset partially by a $16.6 million reduction in accounts payable. Net cash provided by operating activities was $9.9 million for the same period last year. Net cash provided by operating activities decreased $3.1 million for the three months ended March 31, 2009 compared to the same period last year. This decrease resulted primarily from an approximately $11.8 million decrease in liabilities and a $23.4 million decrease in net income, partially offset by an approximately $30.8 million increase in assets. We continue to closely monitor our credit terms with our customers, while at times providing extended terms, primarily required by our customers in Asia and Europe.
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