Diodes Incorporated reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net sales dropping to $1.3 billion, a decrease of 21.1% from $1.7 billion in 2023. The company's gross profit also fell sharply, down 33.8% to $435.9 million, resulting in a gross profit margin of 33.2%, compared to 39.6% the previous year. Operating income plummeted by 79.9% to $50.4 million, while net income decreased by 80.6% to $44.0 million, translating to earnings per share of $0.95, down from $4.91 in 2023. The decline in revenue and profitability was attributed to reduced demand for semiconductor products and inventory adjustments by customers.
In terms of operational metrics, Diodes shipped approximately 39 billion units in 2024, down from 42 billion in 2023 and 50 billion in 2022. The decrease in units shipped was primarily driven by a softening demand in key end markets, particularly in the automotive and industrial sectors, which collectively accounted for 42% of total product revenue. The company noted that the average selling price of its products decreased by 14.9%, reflecting the overall market conditions.
Strategically, Diodes has been active in expanding its product offerings and capabilities. In October 2024, the company completed the acquisition of Fortemedia, Inc., enhancing its portfolio in advanced voice processing technologies aimed at the automotive and computing markets. This acquisition follows previous strategic moves, including the purchase of onsemi's wafer fabrication facility in South Portland, Maine, in June 2022, which aimed to bolster its analog product capacity. The company continues to focus on high-margin segments and plans to invest in technology leadership and selective acquisitions to drive growth.
Looking ahead, Diodes expressed a cautiously optimistic outlook for 2025, anticipating a stronger year compared to 2024. The company aims to capitalize on improved demand in Asia and is focused on expanding its presence in the automotive and industrial markets. Despite the challenges posed by the global economic environment, Diodes believes its strategic initiatives and a solid balance sheet position it well for future growth. The company remains committed to achieving its long-term goal of $1.0 billion in gross profit based on $2.5 billion in revenue and a gross margin of 40%.
About DIODES INC /DEL/
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