Shanghai Plant, Market Recovery Boost Diodes

Diodes Inc. in Westlake Village reported that net income for the second quarter more than doubled to $1.22 million from $555,000 a year ago, and earnings per share jumped to 23 cents from 11 cents.

Revenues for the quarter increased 15.5% to $15.54 million from $13.45 million in the same period last year.

“We continue to tighten our management of inventory, and we have not had the margin pressures we witnessed a year ago when there was considerable excess capacity among semiconductor manufacturers,” said David Lin, president and chief executive officer. Part of the company’s success last quarter is attributable to the fact that its Shanghai-based manufacturing facility, Kai Hong, is now fully operational and profitable. Diodes has a 70% controlling interest in Kai Hong and has invested about $3 million to date.

“Diodes’ bottom line has been further enhanced by the fact that, as a start-up joint venture on mainland China, Kai Hong enjoys favorable tax treatment that is expected to continue for the next four years,” Lin said.

Diodes provides semiconductor devices to leading manufacturers in the automotive, electronics, computer and telecommunications industries.