Good afternoon, welcome to Diodes Incorporated 1st Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for the question and answer session. If anyone needs assistance at any time during the conference call, please press the star key followed by the zero on your touch-tone phone. As a reminder, this conference call is being recorded today, Thursday, May 6, 2021. I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead. Good afternoon, and welcome to Diodes' 1st Quarter 2021 Financial Results Conference Call. I'm Leanne Sievers, president of Shelton Group, Diodes' investor relations firm. Joining us today are Diodes' Chairman, President, and CEO, Dr. Keh-Shew Lu; Chief Financial Officer, Brett Whitmire; Senior Vice President of Worldwide Sales and Marketing, Emily Yang; Senior Vice President of Business Groups, Gary Yu; and Director of Investor Relations, Laura Fu. Before I turn the call over to Dr. Lu, I'd like to remind our listeners that the results announced today are preliminary as they are subject to the company finalizing its closing procedures and customary quarterly review by the company's independent registered public accounting firm. As such, these results are unaudited and subject to revision until the company files its Form 10-Q for its first quarter 2021, ending March 31st, 2021. In addition, management's prepared remarks contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore, we refer you to a more detailed discussion of the risks and uncertainties in the company's filings with the Securities and Exchange Commission, including Forms 10-K and 10-Q. In addition, any projections as to the company's future performance represent management's estimates as of today, May 6, 2021. Diodes assumes no obligation to update these projections in the future as market conditions may or may not change, except to the extent required by applicable law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. Also, throughout the company's press release and management statements during this conference call, we refer to net income attributable to common stockholders as GAAP net income. For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 90 days in the investor relation section of Diodes' website at www.diodes.com. Now, I'll turn the call over to Diodes Chairman, President, and CEO, Dr. Keh-Shew Lu. Dr. Lu, please go ahead. Thank you, Leanne. Welcome, everyone, and thank you for joining us today. Revenue in the first quarter set a new record, both organically and on a consolidated basis, increasing 18% sequentially and exceeding the high end of our guidance range. In what has historically been a seasonally down quarter for our business. Our growth was driven by record total POS revenue as a result of record revenue in both Asia and Europe, combined with strong growth in North America. We also achieved record revenue in our computing end market, driven by record telecom product revenue in the automotive market due to strong organic growth in Diodes' automotive business. Combined with our expense management and operating efficiency, we delivered the highest quarter of adjusted earnings per share, which increased 25% sequentially. The integration of LSC is also progressing well and ahead of schedule, as we have already began to harvest the benefit of manufacturing synergies from improving factory loading with both LSC's and Diodes' products. In fact, loading at the LSC facility has reached 70% in the quarter versus our original target of 50%, resulting in being operationally breakeven at this facility two quarters ahead of plan. Overall, our global manufacturing footprint is serving as a key advantage at a time when the broader semiconductor industry is challenged by supply and capacity constraints. We have both internal and external capacity needed to support the increasing demand we are seeing for our product. As a result, we expect to deliver another quarter of sequential growth in the second quarter, coupled with a continued expansion in bottom-line profitability. With that, let me now turn the call over to Brett to discuss our first quarter financial result and our second quarter 2021 guidance in more detail. Thanks, Dr. Lu, and good afternoon, everyone. As part of my financial review today, I will focus my comments on the sequential change for each of the line items and would refer you to our press release for a more detailed review of our results, as well as the year-over-year comparisons. Revenue for the first quarter 2021 was a record $413.1 million, which included the first full quarter of revenue from LSC, an increase of 17.9% from the $350.4 million in fourth quarter 2020. Gross profit for the first quarter was also a record at $138.6 million or 33.6% of revenue on a consolidated basis and 36.3% for Diodes only. This compares to $122.7 million or 35% of revenue in the fourth quarter 2020. GAAP operating expenses for the first quarter 2021 were $91.2 million or 22.1% of revenue. On a non-GAAP basis were $86.4 million or 20.9% of revenue, which excludes $4 million of amortization of acquisition-related intangible asset expenses and $0.8 million of restructuring costs. This compares to non-GAAP operating expenses in the prior quarter of $75 million or 21.4% of revenue. Total other income amounted to approximately $2.6 million for the quarter, including $6 million of other income and $768,000 of interest income, partially offset by $2.9 million in interest expense and $1.3 million in foreign currency loss. Income before taxes and non-controlling interest in the first quarter 2021 was $50 million compared to $36.1 million in the previous quarter. Turning to income taxes, our effective income tax rate for the first quarter was approximately 18.9%. GAAP net income for the first quarter 2021 was $39.5 million or $0.87 per diluted share, compared to GAAP net income of $29.7 million or $0.59 per diluted share in the fourth quarter 2020. The share count used to compute GAAP diluted EPS for the first quarter 2021 was 45.2 million shares, which reflects a reduction in the weighted average share count due to the repurchase of approximately 7.8 million Diodes shares from LSC as part of the acquisition. Non-GAAP adjusted net income in the first quarter was $42 million, or $0.93 per diluted share, which excluded net of tax, $3.3 million of acquisition-related intangible asset costs, $1.5 million of acquisition-related costs, $0.7 million in restructuring costs, and $2.9 million gain in value of certain LSC investments. Non-GAAP adjusted net income in the fourth quarter 2020 was $37.3 million or $0.74 per diluted share. Included in first quarter 2021, GAAP net income and non-GAAP adjusted net income was approximately $4.8 million net of tax of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP earnings per share and non-GAAP adjusted EPS would have increased by $0.11 per diluted share for first quarter 2021 and $0.10 for the fourth quarter 2020. EBITDA for the first quarter was $81.7 million or 19.8% of revenue, compared to $67.1 million or 19.1% of revenue in the prior quarter. We have included in our earnings release a reconciliation of GAAP net income to non-GAAP adjusted net income and GAAP net income to EBITDA, which provides additional details. Cash flow generated from operations was $68.2 million for the first quarter 2021. Free cash flow was $51 million for the first quarter, which included $17.2 million for capital expenditures. Net cash flow in the first quarter was a positive $10.6 million, which included a paydown of $37.4 million of long-term debt. Turning to the balance sheet, at the end of first quarter, cash equivalents, restricted cash plus short-term investments totaled approximately $339 million. Working capital was $618 million, and total debt, including long-term and short-term, was $415 million. In terms of inventory, at the end of first quarter, total inventory days decreased to approximately 98 in the quarter on a consolidated basis as compared to 115 last quarter. Finished goods inventory days also decreased to 27 from 31 in the fourth quarter 2020. Total inventory dollars decreased $17.1 million to approximately $290 million. Total inventory in the quarter consisted of $18.2 million decrease in raw materials, a $3.5 million decrease in finished goods, and a $4.6 million increase in work in process. Capital expenditures on a cash basis for the first quarter 2021 were $17.2 million, or 4.2% of revenue. We expect to remain within our target model of 5%-9% for the full year. Now turning to our outlook. For the second quarter of 2021, we expect revenue to increase to approximately $434 million, ±3%, which represents a record on both an organic and a consolidated basis for a combined increase of 5% sequentially at the midpoint. We expect GAAP gross margin on a consolidated basis to be 35.6%, ±1%. non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 20.5% of revenue, ±1%. We expect net interest expense to be approximately $1.6 million. Our income tax rate is expected to be 19%, ±3%, and shares used to calculate diluted EPS for the second quarter are anticipated to be approximately 45.7 million. Please note that purchasing accounting adjustments of $3.3 million after tax for Pericom and previous acquisitions is not included in these non-GAAP estimates. With that said, I will now turn the call over to Emily Yang. Thank you, Brett. Good afternoon. The 17.9% sequential increase in the first quarter revenue was better than the high end of our guidance, driven by the record direct revenue increase more than 30% and record POS revenue up more than 10%, led by POS records in Asia and Europe, combined with strong growth in North America. Distributor inventory in terms of weeks decreased quarter-over-quarter and below our defined normal range of 11-14 weeks. Looking at the global sales in the first quarter, Asia represented 81% of the revenue, Europe 12%, and North America 7%. In terms of our end markets, Computing represented 30% of the revenue, Industrial 22%, Consumer 19%, Communication 17%, and Automotive 12% of revenue. We achieved record revenue in Automotive end market, which was strong across all regions, and the Computing market driven by record Pericom revenue. Let me review the end market in greater details. Starting with our automotive market, our record revenue achieved in the quarter reflects an 18% sequential increase and 61% year-over-year increase to 12% of total revenue. This growth was driven by strong organic growth for Diodes or automotive products with minimal contribution from LSC, since this product have low exposure to this market. We also continue to gain contact with our expanded automotive portfolio of Pericom products as we secure several new design wins for our interface and frequency control product in the automotive applications, ranging from ADAS, infotainment, telematics, and dashboard systems. During the quarter, we introduced several new automotive-grade products, including USB switches, IO expanders, and 14 new frequency control products for the in-vehicle infotainment system, connected driving, lighting, and body control applications. We also introduced a two-wire automotive latch Hall sensor and over 20 DC-to-DC products with design-ins and design wins at multiple customers in the infotainment power supplies, lighting, instrument clusters, telematics, and ADAS applications. We also secured additional design wins for gate drivers, LED drivers, and voltage regulators with major car manufacturers in applications like wireless charging, lighting, and DC-to-DC for electric vehicles. Also, during the quarter, we saw very strong demand for our protection devices in automotive Pixel Link, HDMI, LVDS, and data line protection. Higher voltage battery system drove up the demand for our MOSFET products. Also released two new MOSFET in the TO-LL package to help address the power efficiency demand. We also released 3-channel linear LED drivers, seven new SBR products, and five optocoupler transistor automotive products during the quarter. SBR/Schottky products were designed-in by a number of customers in the EV battery management system, car headlight displays, onboard computer, and portable power bank applications. In our industrial market, we also achieved very healthy revenue growth of 13% sequentially and 25% over the prior year. Similar to the automotive market, revenue contributions from Lite-On Semi is very minimal, which highlight the strong growth and momentum Diodes has continued to achieve in the industrial market. During the quarter, we saw increasing demand of our wide VIN LDO product family for applications such as power tools, e-meters, IoT, and other industrial applications. We have also seen an increasing number of design wins for linear voltage regulators in DC fans to support applications such as mining machines, communication, MCUs, and IT systems. Additionally, we saw more design-ins for SBR and trench Schottky in applications like industrial router, lighting, and heavy machinery. Diodes MOSFET product continued to gain market share in brushless DC inverter applications, and our success with LED driver chips that continue with new design-ins for commercial lighting projects. We also released a 8x8 lane PCI Express 3.0 packet switch, which is designed to meet the need of industrial PC market to improve signal reliability and increase bandwidth performance. In the consumer market, we saw strong demand for our piezo sounder driver due to tracker market growth. We also continue to expand our business for USB power delivery decoder in OEM/ODM quick charger application. PV and monitor design wins also continue to represent a large opportunity for our BJT products, and we have very good design win activities for very small transistors into robotic vacuum cleaners and doorbells. In addition, we continue to build traction for our products in IoT, smart home, and entertainment applications. For the communication market, we saw traction from several Schottky and SBR product in the satellite radio, 5G routers, access point routers, and Power over Ethernet switches. Demand for our Pericom product remains strong as high-speed data processing drove the ramping of 200, 400, 800 gig connections. Pericom frequency control products, ultra-low jitter, small size crystal oscillator family, have several design wins into optical modules. We also released more than 11 new devices in frequency control product family for communication applications. Also, during the quarter, our high PSRR LDO product family and omnipolar Hall sensors continued to achieve design wins and design ins in smartphones. Our low saturated high voltage transistors were designed into routers, IP cams, and optical network applications. In the computing market, revenue increased 54% quarter-over-quarter and 160% year-over-year to a quarterly record, primarily driven by record Pericom revenue combined with initial revenue contribution from LSC products. New design-in activity continues in the PC segment, along with increased demand of our existing Pericom product, driven by the growth across all the platforms, including consumer, education, and commercial PCs. In the quarter, we released three 1.8 volt redrivers, servicing USB Type-C and DisplayPort for PCs, and two additional HDMI redrivers for high-speed media applications. Continuous demand for high-resolution display propelled our HDMI/DP ReDriver product to another unit volume peak. New USB power switch product for USB-A and USB-C port achieved solid revenue growth, driven by strong market demand for notebooks. Our design-in momentum continues for dual unipolar Hall sensor, EFD total solutions for USB Type-C, flash LED driver, and the Schottky product in the notebook, tablet, and storage application. Also, during the quarter in computing market, we released close to 100 new power TVS, high surge data line protection, and power stage products for power line and U-Bus protection for notebooks, mobile phones, panels, and charger application. In summary, we are very pleased with our strong start to the new year, lead by above seasonal growth, resulting in record first quarter revenue. Additionally, record POS as well as low channel and internal inventory indicate a strong second quarter with continued increasing in growth and profitability. We have already began to realize the initial benefit of the manufacturing synergy from the Lite-On Semi acquisition, with significant opportunities for upside by capitalizing the additional synergies across products, customers, and end markets. With that, we now open the floor to questions. Operator? Certainly. Ladies and gentlemen, if you have a question at this time, please press star then one on your touch-tone telephone. If your question has been answered and you'd like to remove yourself from the queue, please press the pound key. We ask that you please limit yourself to one question and one follow-up. You may get back in the queue as time allows. Our first question comes from the line of Matthew Ramsay from Cowen. Your question please. Thank you very much. Good afternoon, everybody. Impressive results for sure. Dr. Lu, I wonder if you might give us a bit of a more detailed status upgrade of the integration on the operations side with LSC. You, I think, mentioned in your brief prepared comments that you're now at 70% utilization in those facilities. It's certainly a good environment to have extra capacity given the tightness in the industry. If you could give us a little bit of an update there and how you see that utilization rate of those facilities trending in the next couple of quarters. Thanks. Yes. Let me get Gary. He's in charge for the LSC integration to answer your question. Yes. Hi, everybody. This is Gary. I'm new to this conference call. Okay. To answer your question, yes, we do see the improvement by the facility usage increase a lot in the second quarter, and we will continue loading our factory in the next couple quarters, and we will see more utilization in the third and the fourth quarter. Got it. Thanks. Welcome to the call. Thank you for the detail. As my follow-up question, I guess for the whole team, it's been some very impressive growth, both consolidated and organically. No secret that there's a lot of different points of capacity tightness across the industry. Diodes happens to be in a position to have some extra foundry capacity, which is great, but maybe you could calibrate us a little bit on how other things in the market may be affecting the upside that you can continue to deliver. I'm thinking about things like testing capacity, packaging, wafers, substrates, and even limitations of supply of some of your peer companies that may sell into the same cars or end market devices. If there's any way you could calibrate how the environment is out there versus the strength that your company is seeing, that would be much appreciated. Thank you. Okay. The most constraint of the capacity is the wafer fab. Fortunately, half of our wafer requirement is coming from our internal wafer fab support. Another advantage, or another fortunately, is because in 2019, we acquired the fab from Texas Instruments, we call G Fab, and that G Fab provide us a very big additional internal capacity. The other one is we are ramping up the, we call S Fab 2, which is in Shanghai, when we acquire BCD, and that is a fab. We get it, now we are ramping up for eight-inch section of the S Fab 2. Those two fabs is helping us a lot for the wafer requirement. In addition, when we purchase LSC fab is under loading. If you remember, we're just talking about that. When we acquire, it's 50% loading. We now, like Gary talking about, is in 1Q is already up to 70%, then we'll continue increase the capacity or the utilization for that LSC fab. Overall, we really have a good room to grow our revenue by ramp up or utilize more our internal fab. Yes, since we are able to get more support from our external fab. Overall, we see some constraint, but it's not very severe to us, and you can see our revenue growth, continued revenue growth in 1Q and continue to 2Q, and we are able to continue support us in the future, the rest of the year. That's correct. Okay. The rest of it, since assembly, again, majority is our own factory. We do continue expand our assembly capacities. We don't really see a major limitation for our expansion for the revenues. The rest of it's really a minor constraint. Right. I think Diodes has performed much better than our competitor due to we have a lot of our internal manufacturing capability. Thank you, Dr. Lu, for that. The results speak for themselves. I'll jump back in the queue. Appreciate it. Thank you. Thank you. Our next question comes from the line of William Stein from Truist Securities. Your question, please. Great. Thanks for taking my question. Part of it was answered a moment ago. I'm maybe looking for a more forceful view. All the other companies are talking very clearly about capacity constraints. It sounds like they're not as problematic for you because of your internal capacity. Are you seeing lead times in aggregate stretch, either because the company's having trouble delivering on some parts, or because customers are willing to place orders at longer lead time? Are you seeing that dynamic in your business? If so, maybe how far out in the future are we stretching today? Right. Hi, William. This is Emily. Let me answer the question. We've definitely seen the overall market constraint, right? We have very strong book to bill ratio. We have extremely strong backlog across all the regions, and just like I reported, we have very strong POS result as well. Definitely, we've seen a little bit of the imbalance of supply and demand in the market. I want to make sure we've seen that as well. What we've been doing is actually we are overcoming different bottlenecks by working very closely with the customers to understand their true demand, right? Definitely we are seeing longer, we say, bookings, right? People, the lead time is stretching a little bit longer, but I've been emphasizing it's not really about the lead time, it's really true demand that understanding from the customer by working closely with them. We've definitely seen longer visibility for the backlog point of view. Yes. One other, if I can. An idea that's been sort of discussed in the semi industry for some years is competition from local China-based manufacturers. There's, I think, a new JV announced in the last couple of days between Yageo and Foxconn to produce small ICs. Not necessarily about that potential future competitor specifically, but if you can characterize the competitive threats generally and specifically about sort of local new entrants in the market in China. Thank you. Right. Definitely. New competitors coming from China is nothing new. We have been seeing that, I would say, situation for a while already. Like I mentioned before, what we usually see, this kind of competitors, really more on the low end of the product or the technology. Over the years, Diodes has been implemented a strategy is actually walking away from this kind of deep commodity market areas. What we've been doing is actually continue to improve our technology and continue to drive the product next to the higher-end side, right? I would say even having more competition in the low-end area doesn't really have a big impact for the overall Diodes business, actually fit it better with our new strategy, because that has been our direction for the last few years. Yeah. I'd like to one more word is, another strategy we did is convert our sales from the commodity or individual sale to the content or total solution sales with the very big or very strong, very wide product portfolio. Through all the sale of history of M&A, our product portfolio is very completed and very wide range, and therefore it give us advantage when we go to the customer, when we approach to the total solution. The new staff company or China company, typically, they are not able to have very wide range or very completed of the product portfolio. This, we watch out for our competitor coming, but we apply our strength of the wide range product portfolio. I think this just give the credit for our past history of the M&A, and to enable us to now participate to the customer solution, by using our wide range of product portfolio. Great. Thank you, and congratulations on the excellent results. Thank you. Thank you. Thank you. Our next question comes from the line of Tristan Gerra from Baird. Your question please. Hi. Thanks for letting me ask a question. I think I heard that about 50% of your production is outsourced currently, and I think that's mostly on the analog side following the years ago, Kansas City shut down. Are you expecting to meaningfully change over the next few years and increase the percentage of your manufacturing that's going to be insourced, notably as you now have more capacity in-house between SFAB 2, GFAB and Lite-On? Yes. Let me answer the question. Definitely we're going to increase our internal capacity that we can have more control, but Dr. mentioned about from the years ago, we acquired BCD Semiconductor, so we have eight-inch wafer fab. GFAB we acquired from TI, we got a six-inch and eight-inch wafer fab in Scotland. Also just recently we merged with Lite-On Semi. We have a six-inch wafer fab and a four-inch wafer fab in the Jhongli and the Keelung in Taiwan. We are still looking for the good candidate with a good capacity to increase internally in the future. That probably in the very soon, we will have a newer capacity maybe. Okay? Definitely this our direction to increase our internal capacity and reduce the outside support from subcon. Okay. Given the relative supply advantage you have versus peers, and given some larger analog companies have de-emphasizing certain products being supply constrained, do you basically see market share gains, as you're basically taking on products that some of your peers are either de-emphasizing on purpose or not able to serve the market with? Yeah, definitely. When the capacity is very high and demand is very strong, and whoever the company has the capacity will win the business. Right. Let me just add a little bit on top of that. I think, Tristan, it's all about balancing, right? Keeping in mind, our strategy doesn't really change. What we've been focusing is content expansion, right? We want to continue to expand the product into the customer and continue to expand our customer base, right? Right now it's an interesting dynamic of the market, but does not take away our long-term focus as a company. What our focus is continue with our total solution sales, continue to improve our product mix, right? That is actually the reason, because we do have a very clear goal by 2025 that we want to achieve $2.5 billion, right? I would say yes, there are short-term variations for the demand and supply imbalance, but that does not take away our long-term strategy of the product mix improvement as well as content expansion. Okay. Very useful, Carter. Thank you. Thank you. Once again, ladies and gentlemen, if you have a question at this time, please press star then one. Our next question comes from the line of David Williams from Loop Capital. Your question please. Good afternoon, thanks for the question and congrats on the solid progress. I guess I wanted to see maybe if you could help size up maybe your backlog or maybe any color around that, the velocity of the orders through the quarter, just kind of how you've seen the orders tracking, and how you think about that as we move through this quarter, maybe into the third quarter. Hi, David. Let me answer your question. We do actually continue to see strong book-to-bill ratio, much higher than one. Like I reported in the Q1 result, right? We've seen very strong POS results and the record POS from Asia as well as for Europe. Even for North America, we actually seen very strong momentum, growth more than 20%. If I look at the direct POS business point of view, the OEM business, I also mentioned we actually grow more than 30%, right? Based on all this data and based on the strong backlog that we currently have on the book, so overall, I would say the market is very strong across all the regions and also across all the segments. Within the segment, we're definitely seeing continue extra strong strength from the automotive, and we're also seeing very good momentum in the industrial continue to recover, and the computing will continue to be strong. I think even consumer and communication, we are also seeing very strong backlog as well. Great. Well, in addition, if you look at the inventory from our DC is very low. Okay. We typically looking for 11 to 14 week of the DC inventory, and we are now even below the 11 week. In addition of the strong POS, the inventory reuse or low inventory actually going to indicate a very strong business in the future. Okay. All right. Thank you. Maybe just from your customers, do you get a sense that they are being fairly rational in terms of their orders? Obviously, double bookings are a thing, and it may not mean much, but do you get a sense that maybe they're becoming a little more rational in their ordering and understanding the lead times and placing orders that are in line with what the real dynamics are? Yeah. I think, like I mentioned before, we work very closely with the tier 1, tier 2 customers to understand their true demand. What we've seen is very rational. Going through the distribution side, the tier 3, tier 4 is not something we have the bandwidth to work with each individual customer to understand it. How we measure it is actually we look at the POS result, we look at the channel inventory. With all this data, I would say overall, the business seems really solid and strong overall. Great. Thanks so much. Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to management for any further remarks. Thank you for your participation on today's call. Operator, you may now disconnect. Thank you. Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.