Diodes Inc. (DIOD, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $766.8 million; its shares were traded at around $18.52 with a P/E ratio of 48.7 and P/S ratio of 1.7. Diodes Inc. had an annual average earning growth of 28% over the past 5 years.
Interest income decreased for the three months ended June 30, 2009 to $1.3 million, compared to $2.6 million in the same period last year, due primarily to a decrease in interest income earned on our short-term investment securities. Interest income for the three months ended June 30, 2009 has been impacted by the continued turmoil in the credit markets, and in particular with the continued interruption in the auction rate securities (ARS) auction markets. In October 2008, we reached a settlement agreement with UBS AG, whereby we were given the option to put the ARS portfolio back to UBS AG at any time between June 30, 2010 and July 2, 2012 at par value. We continue to earn interest on our ARS portfolio and expect the weighted average interest to be earned during 2009 will be lower than earned in 2008.
Interest expense for the three months ended June 30, 2009 was approximately $1.9 million, compared to $2.2 million in the same period last year. The $0.3 million decrease in interest expense is due primarily to the reduced interest paid due to the repurchase and retirement of $71.1 million par value of Notes during the fourth quarter of 2008, first quarter of 2009 and second quarter of 2009. The decrease in interest expense was partially offset by the interest expense charged in connection with our no net cost loan with the offsetting interest earned being recorded in interest income.
Amortization of debt discount for the three months ended June 30, 2009 was $2.3 million, compared to $2.7 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 $71.1 million par value of Notes during the fourth quarter of 2008, first quarter of 2009 and second quarter of 2009.
Other expense for the three months ended June 30, 2009 was $0.3 million, compared to other expense of $1.2 million in the same period last year. Included in other expense for the three months ended June 30, 2009 was a $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, and unfavorable Taiwan and China currency exchange rate changes during the period, partially offset by a $1.5 million gain on forgiveness of debt from government subsidies in China.
We recognized income tax expense of $5.2 million for the three months ended June 30, 2009, compared to $1.8 million in the same period last year. Income taxes for the interim period ending June 30, 2009 have been included in the accompanying financial statements on the basis of actual year-to-date effective income tax rate. Income taxes for the interim period ending June 30, 2008 have been included in the accompanying financial statements on the basis of an estimated annual effective rate. The estimated effective tax rate (excluding discrete items) is 181.1% for the three months ended June 30, 2009, as compared to the annual effective tax rate for the same period last year of 16.6%. The estimated effective tax rate for the three months ended June 30, 2009 was impacted by the non-cash income tax expense of $4.9 million associated with repatriating earnings of foreign subsidiaries to the U.S. parent.
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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 $766.8 million; its shares were traded at around $18.52 with a P/E ratio of 48.7 and P/S ratio of 1.7. Diodes Inc. had an annual average earning growth of 28% over the past 5 years.
Highlight of Business Operations:
Amortization of acquisition-related intangibles increased for the three months ended June 30, 2009 to $1.1 million, compared to $0.2 million in the same period last year, due to the acquisition of Zetex.Interest income decreased for the three months ended June 30, 2009 to $1.3 million, compared to $2.6 million in the same period last year, due primarily to a decrease in interest income earned on our short-term investment securities. Interest income for the three months ended June 30, 2009 has been impacted by the continued turmoil in the credit markets, and in particular with the continued interruption in the auction rate securities (ARS) auction markets. In October 2008, we reached a settlement agreement with UBS AG, whereby we were given the option to put the ARS portfolio back to UBS AG at any time between June 30, 2010 and July 2, 2012 at par value. We continue to earn interest on our ARS portfolio and expect the weighted average interest to be earned during 2009 will be lower than earned in 2008.
Interest expense for the three months ended June 30, 2009 was approximately $1.9 million, compared to $2.2 million in the same period last year. The $0.3 million decrease in interest expense is due primarily to the reduced interest paid due to the repurchase and retirement of $71.1 million par value of Notes during the fourth quarter of 2008, first quarter of 2009 and second quarter of 2009. The decrease in interest expense was partially offset by the interest expense charged in connection with our no net cost loan with the offsetting interest earned being recorded in interest income.
Amortization of debt discount for the three months ended June 30, 2009 was $2.3 million, compared to $2.7 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 $71.1 million par value of Notes during the fourth quarter of 2008, first quarter of 2009 and second quarter of 2009.
Other expense for the three months ended June 30, 2009 was $0.3 million, compared to other expense of $1.2 million in the same period last year. Included in other expense for the three months ended June 30, 2009 was a $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, and unfavorable Taiwan and China currency exchange rate changes during the period, partially offset by a $1.5 million gain on forgiveness of debt from government subsidies in China.
We recognized income tax expense of $5.2 million for the three months ended June 30, 2009, compared to $1.8 million in the same period last year. Income taxes for the interim period ending June 30, 2009 have been included in the accompanying financial statements on the basis of actual year-to-date effective income tax rate. Income taxes for the interim period ending June 30, 2008 have been included in the accompanying financial statements on the basis of an estimated annual effective rate. The estimated effective tax rate (excluding discrete items) is 181.1% for the three months ended June 30, 2009, as compared to the annual effective tax rate for the same period last year of 16.6%. The estimated effective tax rate for the three months ended June 30, 2009 was impacted by the non-cash income tax expense of $4.9 million associated with repatriating earnings of foreign subsidiaries to the U.S. parent.
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