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Diodes Inc. Reports 7.5% Drop in Revenues

August 06, 1996|LEO SMITH

Diodes Inc. of Westlake Village reported a 7.5% decline in revenues and a 47% drop in income for the second quarter of 1996, compared to the same period a year ago.

According to financial reports released last week, the company brought in $13.5 million in revenues from April to June of this year, down from $14.5 million a year earlier. During the same period, income fell from $1.7 million to $903,000 and earnings per share dropped from 21 cents to 11 cents.

Diodes is a supplier of discrete semiconductor products for the automotive, telecommunications and electronics and computing industries.

David Lin, president and chief executive of Diodes, attributed the financial declines to excess inventory and pricing pressures throughout the discrete semiconductor industry. But, he said he looks for his company's performance to turn around shortly.

"We remain cautiously optimistic regarding the second half of 1996," Lin said, "when we expect to see some pickup in orders as end-users further deplete their inventories."

Some of the financial downturn, Lin said, may also be attributed to expenses incurred from his company's recent investment in the Shanghai Kai Hong Electronic Co. Ltd. of China.

The manufacturing facility, in which Diodes now has a controlling interest, is operational and has begun shipping products but is not yet up to full capacity.

"Seeking out and exploiting such opportunities takes time, it takes capital," Lin said. "The payoff is often a year or two away."

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