Diodes' Management Discusses At UBS Global Technology And Services - Conference Call Transcript

Diodes Incorporated (DIOD)

UBS Global Technology and Services Conference Call

November 15, 2011 10:00 AM ET


Laura Mehrl – Director of Investor Relations


Steven – UBS Investment Research



Good morning, everyone. It’s my pleasure today to introduce Laura Mehrl from Diodes Incorporated. She is the Director of Investor Relations. Today, she’ll go through a presentation overviewing the company and afterwards, we will have a few minutes for Q&A.

Laura is very experienced in the analog space. She has a wealth of experience on technical side, as well as the product side. She has number of years under her belt from Texas Instruments.

And, with that, I’ll hand it over to Laura.

Laura Mehrl

Thank you, [Steven]. Good morning and welcome to Diodes’ presentation. So we can get start here. But I won’t use the whole 25 minutes. You can stop me at anytime if you have questions. This is the Safe Harbor statement, most everyone are familiar with this statement. For the sake of time, we’ll not review it in details here, but I encourage you to review our detailed SEC disclosure in the Investor section of our website at www.diodes.com.

This is our President and CEO, Dr. Lu. He joined the company since 2005. He has been the Director for 10 years, Director of Board, Director for 10 years. And before that, his whole career was with Texas Instruments for 27 years held various senior positions such as, President of TI Asia and he is the Senior VP of Memory Group and also the last position he held before he retired was Senior VP of Mixed-Signal, Logic, Analog.

Myself, I have been in semiconductor industry for 25 years, my background mainly engineering and marketing and sales. I joined Diodes in May 2010 as Investor Relations.

So, about Diodes, Diodes, our main focus is application specific standard product for our discrete, logic, and analog serving the consumer, computing, communication, industrial and automotive.

So, our business objective is consistently achieve above market profitable growth, utilizing our innovative and cost-competitive packaging, process expertise and design excellence to address the high volume and cost sensitive market. And for those of you who know our company, we don’t really at this moment set any target for our gross margin. We’re focusing on revenue growth and gross profit dollar.

Here’s a whole marketing. As you can see, yeah, I’m sorry, yeah, sorry, I’m trying to use the laser point. It doesn’t have laser point there? Anyway, as you see the pie chart, the whole SAM that we’re serving, again is $80 billion.

But for SAM, for a servable market for us, together with a discrete, logic and analog together is about $26 to $32 billion and our revenue as of last year is only $613 million. So we have a lot of space to grow. We don’t necessarily countdown the market growth. We mainly grow by gaining market share. Here’s how we’ve been growing. We have growing many ways in product space. We aggressively, this one slide here...

Unidentified Participant


Laura Mehrl

Okay. Thank you very much. So in product space, we have aggressively introducing new products as you -- any of you have listened to our earning calls, every quarter earnings calls, our Senior VP of Marketing Sales release the number of products, in every quarter we release, it’s always has been over hundreds of them. Also we have continued to improve product performance. Together, they have helped us to increasing our SAM growth and revenue growth.

In packaging and application space, packaging, we continue improve the power density and miniaturization besides the increasing capacity and capability. I’ll go through this in detail later.

In application space, we continues increasing our key account in the Tier 1 customers and within each account, we increase the footprint with an application and then, as we introduce more and more new products, we increase the contents of each application.

As those people who follow Diodes, you know that before 2006, we’re just pure provider for discrete. After Dr. Lu joined the company, he knew that if we want to grow, we have to because discrete market doesn’t really grow that much anymore. So he led us into analog in 2006 by acquiring two companies. Then in 2010 last June -- actually in UBS Conference last June, we announced we get into the standard logic.

Diodes has extensive processing expertise to help us through, enhance our product performance. Just last year, we have announced a several trademark products. Here just some detailed examples. I forgot to mention in the previous slide, yeah, in 2008, we also acquired a bigger one called Zetex and they brought in a lot of proprietary process technology that really help us to improve the product performance.

For example, before we had Zetex, Diodes just have some really basic rectifier, such a rectifier after we brought in Zetex, we divided this middle range that’s called Super Barrier Rectifiers, which brings down voltage to less than 400 volts.

And last year, we announced a trademark product DIODESTAR Rectifier, which bring down voltage greater than 600 volts and that lead us into unregistered applications, same thing as MOSFET. MOSFET is one of the really key sellers for Diodes. Before, we just have really low end MOSFET then we introduced the DIODESTAR with very low RDS on lower breakdown voltage.

Last year, we introduced the DIODESTAR MOSFET with breakdown voltage over 600 volts. These are just examples that we use. We were normally used to be in low end and Zetex is more towards the high end. Now, we’re using their technology really develop tons of product stressing true high-volume mid-range in application.

Read the rest of this transcript for free on seekingalpha.com

More from Stocks

Dow Rises as Index Looks to End Losing Streak; GE Slumps

Dow Rises as Index Looks to End Losing Streak; GE Slumps

3 Ways to Fix Starbucks Biggest Challenges

3 Ways to Fix Starbucks Biggest Challenges

General Electric's Boot From the Dow: Is This as Bad as It Can Get?

General Electric's Boot From the Dow: Is This as Bad as It Can Get?

News From Starbucks and General Electric Leaves Their Investors Up in Arms

News From Starbucks and General Electric Leaves Their Investors Up in Arms

Facebook Messenger Could Bring in Billions of Dollars -- Here's How

Facebook Messenger Could Bring in Billions of Dollars -- Here's How