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EX-99.1 - EX-99.1 - DIODES INC /DEL/ | d85672exv99w1.htm |
Exhibit 99.3
DIODES 3Q11 EARNINGS CALL
QUESTION AND ANSWER
QUESTION AND ANSWER
Operator
(Operator Instructions)
(Operator Instructions)
Steven Smigie - Raymond James & Associates Analyst
Great.Thanks a lot. First question is just related to overall revenue. It seems like between 2
quarters you were down 15%, I mean between Q3 and Q4, versus some comps were down more
significantly. Im going to attribute that to you guys being more aggressive about going out and
chasing business, thats maybe a little bit through price. I was wondering if thats the case. And
then what does that suggest about Q1, would Q1 potentially be an up sequential quarter? Thanks.
Keh-Shew Lu - Diodes, Inc. President and CEO
Steve, we dont really give the Q1 outlook at this moment. And the Q1 really very uncertain for us.
Okay. You have you hear from some people, they said, well its already bottom but some people
talking about because the Chinese New Year this year is coming from is coming at the end of or
late part of January and, therefore, some of the manufacturing do have a strong build up for
Chinese New Year in December, and so huh, you know, January, especially during the Chinese New
Year, we dont really know what will be happen.
Steven Smigie - Raymond James & Associates Analyst
Okay. So
Keh-Shew Lu - Diodes, Inc. President and CEO
And then the other thing is Thailand flood, we dont know what will be the effect. So its very
unclear for 1Q right now.
Steven Smigie - Raymond James & Associates Analyst
Okay. Thank you the for that color, appreciate that. In regard to the pay down of the convert does
that mean that going forward theres essentially no interest expense and no intangibles
amortization?
Rick White - Diodes, Inc. CFO
Yes, thats exactly right.
Steven Smigie - Raymond James & Associates Analyst
All right. Great. And last question was just with regard to overall CapEx, Dr. Lu, you guys were
sort of the one of the first to take stuff off when things got worse, one of the first to add
stuff back as things got better last time. Sounds like youre still a little bit cautious on CapEx,
although I would say it does sound like youre still going forward with the Chengdu investment, so
you must be a little bit short-term nervous, but it seems like in the immediate term you still feel
pretty good that theres going to be a decent ramp to the business. So is that fair?
Keh-Shew Lu - Diodes, Inc. President and CEO
Well, because Chengdu investment is a long term. It cannot be affected by the short-term market
environment. If you know our strategy from, in the past, its a short lead time to adding the
equipment at the existing facility, therefore we are able to, when the markets up, we are quickly
add the capacity. When the markets down, we quickly put the capital expansion on hold. But for
Chengdu we are building the campus, building the building, and then we put in these the
facility, the MURFI or need to be put in and then start to put in equipment. Therefore, whenever
well, therefore, after we finish this facility then we can go back to, when we put the equipment we
can control by the market environment. But at this moment what we are building the facility, the
MURFI, that portion cannot slow down. And thats a long-term project.
Steven Smigie - Raymond James & Associates Analyst
Okay. Great.Thanks a lot, guys. Appreciate it.
Harsh Kumar - Morgan Keegan & Co., Inc. Analyst
Good afternoon, guys. A couple of questions. Dr. Lu, is there possibility or room for operating
expense control beyond what youve got it to which is flat from current levels? And then I have one
more.
Keh-Shew Lu - Diodes, Inc. President and CEO
Well, I dont think yes, thats a possibility. But I dont think nows the time we are taking
that. Okay. I think we could let people go and put the R&D on hold, but I dont think now is the
time to do that. We still believe short term, yes, we have a downturn now, but from middle term
next year, we still go after for market gain, and we still go up to share gain. Therefore, we dont
want to cut down any R&D, okay. And for the people, the headcount, I dont think now is the time
because weve put the hiring freeze, but we believe we can bite the bullet and get through this
downturn without reduced headcount. Other than attritions, normal attrition would take it down,
thats why we put a hiring freeze, but I dont think I want to take any action yet because I think
now is probably I wont know, but I think this is probably the worst. But like I said, 1Q we are
not very clear, but at this moment, I dont feel we need to do that.
Harsh Kumar - Morgan Keegan & Co., Inc. Analyst
Thats very helpful Dr. Lu.Thats actually consistent with a couple of other companies. So let me
ask you in terms of inventory, do you think this slowdown in your revenues is inventory driven more
or demand driven more? And if its inventory driven, how much excess inventory do you think is left
to be addressed?
Keh-Shew Lu - Diodes, Inc. President and CEO
I dont believe its inventory driven. I more believe its demand driven. Its demand, in general,
demand soft.
Harsh Kumar - Morgan Keegan & Co., Inc. Analyst
Okay. Great. Thanks, Dr. Lu, thank you.
Suji De Silva - Thinkequity Analyst
Hi, guys. Want to ask first on visibility, whats the turns implied in the guidance? How well are
you booked to that guidance?
Keh-Shew Lu - Diodes, Inc. President and CEO
Im sorry , what
Suji De Silva - Thinkequity Analyst
How well are you booked to your guidance? What are the turns implied in the guidance?
Keh-Shew Lu - Diodes, Inc. President and CEO
Mark, you want to answer this?
Mark King - Diodes, Inc. SVP, Sales and Marketing
Yes. I think its pretty normal turns. Pretty normal turns rate that were at this point in the
quarter. So when were making this guidance at this point, were looking at where were turning and
what our expectations are.
Suji De Silva - Thinkequity Analyst
Okay. Then for the pricing, can you talk about what the decline was, like for like, and what kind
of pricing pressure are you seeing in the bookings for next quarter, as well?
Mark King - Diodes, Inc. SVP, Sales and Marketing
Were seeing, in the commodity product areas, were seeing significant amount of price decrease. I
dont think we have a specific we dont really give the specific quantity, but more than normal.
And possibly with some of the change in demand, its affected the mix a bit, too. So the ASP
decline looks a little greater as we chase it with some of that commodity product thats lower
priced. And yes, its a competitive marketplace. But were used to a competitive marketplace. And
any time that it gets slow, youre certainly going to see some make-up for the price decreases that
did not occur over the last 4 quarters.
Suji De Silva - Thinkequity Analyst
Okay. And then last question, youve held up revenue pretty well here. Can you talk about the
dynamics in the lower margin business versus the higher margin business just demand wise looking
ahead to the fourth quarter? Thanks.
Mark King - Diodes, Inc. SVP, Sales and Marketing
Yes. I think that theres I think theres a softness in demand thats causing more people to
react with better prices. And so, I think the general demand in that product area is the same now.
We might go after certain areas that we hadnt participated in previous quarters. So maybe thats
why thats up for us relative to some of the other products.
Suji De Silva - Thinkequity Analyst
Okay.Thank you.
Keh-Shew Lu - Diodes, Inc. President and CEO
Thank you.
Gary Mobley - The Benchmark Company Analyst
Hi. I wanted to dig down into some of Marks commentary about customer inventories and distributor
inventories. Mark, could you help us reconcile the fact that distributor point of purchase you said
was down 11% quarter-over-quarter. Distributor inventory was up 5% quarter-over-quarter and global
point of sale was down 3%. You didnt
Mark King - Diodes, Inc. SVP, Sales and Marketing
Yes, when you put all this together, you get some timing issues. Okay, so if you look at it,
generally within the next month, some of that that correction gets it gets corrected in the
next month following the quarter. So I think weve already seen some of that correction in October.
So that those numbers dont look so so they balance better. But clearly people were expecting a
better period so they built their inventories up. Now theyre cutting their theyre not seeing
the business base going into the late third in the late third quarter and early fourth quarter
as they expected. So now theyre changing their profile and cutting their inventory drastically. So
I think youll start to see the numbers, probably youll see the inventory going down further in
the fourth quarter, and the numbers will look different the other way in the fourth quarter.
Gary Mobley - The Benchmark Company Analyst
Okay.
Mark King - Diodes, Inc. SVP, Sales and Marketing
So the channel is definitely rationalizing its inventories at this point. So if theres any
inventory correction, its in the channel and not in the end customer.
Gary Mobley - The Benchmark Company Analyst
Okay. And perhaps putting it in terms that most of us are familiar with, could you talk about the
weeks of inventory that both your distributors and your end customers may be carrying, you know,
now versus perhaps by the end of the fourth quarter.
Mark King - Diodes, Inc. SVP, Sales and Marketing
We dont really track our customer inventories because our customers generally do it. They expect
us to deliver so they dont carry a lot. So Diodes inventory is right at about 105 days. And
distributor inventory I know the Asias running at about 3.4 months, and probably North America
and Europe is running at about 120 days. So maybe 4 months which is a little its actually not
that its actually not that high. Its to the old profiles, but they had gone the industry
had shifted to a little tighter inventory control and now theyre a little out of whack. Theyre
about theyre a little bit out of whack, but I expect them to correct that this quarter.
Gary Mobley - The Benchmark Company Analyst
Okay. And Rick, could you go back over your comments regarding the Eris loss in the quarter. What
was the exact EPS impact for the quarter?
Rick White - Diodes, Inc. CFO
Yes, it was $1.3 million. Basically were treating that as a fair value investment. So based on
what the stock price does, we either take a gain or a loss on that investment. Plus, the investment
was made in Taiwan dollars so we also are impacted by the exchange rate changes. And in the third
quarter, the stock price went down, and the Taiwan dollar fell. It was about 50/50 of the $1.3
million for stock price versus exchange rates.
Gary Mobley - The Benchmark Company Analyst
Okay.What was the exact EPS impact?
Keh-Shew Lu - Diodes, Inc. President and CEO
EPS is about $0.03, right?
Rick White - Diodes, Inc. CFO
$0.03, right.
Keh-Shew Lu - Diodes, Inc. President and CEO
$0.03.
Gary Mobley - The Benchmark Company Analyst
All right. Very good. Thanks, guys.
Ramesh Misra - Brigantine Advisors Analyst
Hi, good afternoon folks. In regards to inventories, clearly youre building die bank inventory,
built a fairly large amount last quarter. Should we expect that to go down in the December quarter?
Is that the peak of your inventory build, or will you continue to focus on maximizing factory
utilization?
Keh-Shew Lu - Diodes, Inc. President and CEO
You were talking about the die bank, the wafer bank inventory. We actually slow down the wafer
output. Therefore, I would expect that wafer inventory should be reduced.
Ramesh Misra - Brigantine Advisors Analyst
Okay. And what about the total inventory, Dr. Lu?
Keh-Shew Lu - Diodes, Inc. President and CEO
Oh, the total inventory, the I think we already see some deduction and will continue control
that. But to finish good, Im prepared for the Chinese New Year and prepare for the you always
have people that dont come back after the Chinese New Year. And so if I have excess capacity, Id
probably let me yes, excess capacity, Id probably continue to produce as long as they dont
hire the people, as long as they dont put in excess overtime, Id let them continue build up
because prepare for short month of February, Chinese New Year shutdown, and were going to lose,
some people dont come back, the manpower reduction due to the attrition during the Chinese New
Year. Im prepared for those.
Ramesh Misra - Brigantine Advisors Analyst
Okay. That actually feeds in to my next question. The employee issues that you had earlier on in
the year, how well do you think, do you perceive them to be resolved, and do you expect any
lingering issues?
Keh-Shew Lu - Diodes, Inc. President and CEO
Its already resolved. I would say by end of September, I think our productivity due to the the
new workers has already recovered. Yes. So 4Q thats why in my speech I said we do not want to
cut down the output because we want to continue that ongoing productivity improvement. And thats
why I said if that improvement give me more capacity, just go ahead, do it and prepare for
Chinese New Year, for the short months, for all this next year. And therefore, I just go ahead. So
I might have in the first quarter, we have finished good could be higher a little bit, but I
dont want to slow down the productivity improvement.
Ramesh Misra - Brigantine Advisors Analyst
Got it. And then just a quick follow up on the prior questions about your SG&A expenses. Clearly,
revenues are coming down. So wanted to get a sense of what part of it is variable and what part is
fixed. So Im a little perplexed that you dont have better flexibility in reducing the
marketing G&A expenses as your revenues come down.
Keh-Shew Lu - Diodes, Inc. President and CEO
Well, lets look at several things. Number 1, R&D. R&D, you have 2 portions, 1 is the manpower or
salary which is the fixed cost. Another 1 you can thrown down is reduce the new product but I dont
want to slow down the new product development. So that portion I just keep constant. Dont increase
the people, but I dont want to slow down new product development. Okay. For SG&A, you can reduce
by reduce the people. I want to continue this design win because we have been very successful to
generate the design win we need it for us to gain the market share. We have been continue gaining
market share, and I think in our announcement, we already say quarter, or year-to-date, year to the
end of the third quarter, we actually grew 10% from last year. So you can see we continue gaining
market share and, therefore, do not slow down the design wins. So the way Im doing now is
another variable would be the accrual for the bonus. And accrual but I think in general people
still doing a good job. Its a market environment. Its not because people dont do a good job. So
we still need to accrue certain amounts for the bonus.
Ramesh Misra - Brigantine Advisors Analyst
Okay.
Keh-Shew Lu - Diodes, Inc. President and CEO
So those portions, you just cannot or do not want I just dont want to reduce it. Okay, the only
one I reduce right now is just encourage everybody taking a vacation. So, and those are the portion
and limit traveling, that kind of things we are doing. My point is we are not at the stage we want
to be a major force of reduction, work force reduction. I dont think we are in that stage.
Ramesh Misra - Brigantine Advisors Analyst
Okay. All right. Thanks, Dr. Lu.
Stephen Chin - UBS Analyst
Hi, thanks for taking my question. First one is for either Mark or Dr. Lu. Just in terms of how the
I guess in your conversations with customers, I was wondering if the specific booking orders
that has stabilized yet, or if that is still seen to weaken to a certain degree? Thats my first
question.
Keh-Shew Lu - Diodes, Inc. President and CEO
I think its stabilized. But Mark, do you want to say, comment?
Mark King - Diodes, Inc. SVP, Sales and Marketing
Yes. I dont think that theyre really giving very much long-term outlook. First of all, from a
customer standpoint, its not to their advantage to make us comfortable because then well be less
aggressive with our price. I think that its pretty much stabilizing, were starting to see the
demand. But were not really seeing much into were not seeing much beyond this the next 2
months, and everybodys a little uncertain about where the demand will be around the Chinese New
Year. I mean, theres concern about product, and theres concern about slowing people down because
then people wont be prepared for it. But theres not a lot of visibility into that point.
Stephen Chin - UBS Analyst
Okay. Thats very helpful. And then just kind of overlaying the comments earlier about what youre
doing with capacity utilization rates, it sounds like youre seeing output on the back end that was
steady to maintain the activity level achievements. And so just kind of depending on how you push
those through, will any additional inventory build-up that you have, is that assuming thats
basically an indication of a reasonable recovery going to next year and that we dont have a repeat
of of late 2008, early 2009, is that the right way to think about how you guys are positioning
yourself?
Keh-Shew Lu Diodes, Inc. President and CEO
Well, let me just answer your question in the general terms. Okay. Number 1, okay we since we
put in the hiring freeze, by natural attritions, okay, we still we now have a capital equipment
capacity more than manpower capacity. So if the market turn, we have the room for gaining more
putting more output. Number 2, since we are cutting the overtime again, we when the market turn,
we can use the overtime to make up the need. Therefore when we see when we say we fully utilized
our capacity, Im more talking about fully utilize our manpower capacity instead of equipment
capacity, and we have very limited overtime right now to reduce our cost. But when the market turn,
we prepare for the market turn. And we still have the equipment capacity, the overtime we can use.
So when the market turn, we are able to pick up the upside.
Stephen Chin UBS Analyst
Thanks. Got it. Thats very helpful, Dr. Lu. And last question is for Rick. Just on the gross
margin side. Is it possible if you could put out some of the relative weighting of the factors that
led to the declining gross margin, which means the higher goals cost, the mix, and also the ASPs.
That would be helpful, thanks.
Rick White Diodes, Inc. CFO
Well, we dont normally give that kind of information. But just in general, gold prices went up
about 13% from the second quarter. And we use a lot of gold from month to month. Prices were
probably the biggest impactor of the whole thing as Mark talked about the move to low margin, lower
price product. That has a significant impact on GPM % because it comes off the revenue and the GPM
at the same rate. So it was probably the biggest factor of the 3.
Stephen Chin UBS Analyst
Great.Thanks.
Tristan Gerra Robert W. Baird & Company, Inc. Analyst
You talked about the inventories being in the channel, not at end customers. What type of point of
sale assumption are you making for Q4 sequentially thats embedded in your guidance and would you
expect channeling inventories to be back to normal level at the end of the year based on the trends
that youre seeing, or do you think that there could be a little bit more taking place in Q1?
Mark King Diodes, Inc. SVP, Sales and Marketing
You know, I think there could be, it could move into Q1 a little bit. But I think that were
getting closer and closer. Were cutting our POP targets this quarter quite a bit. And probably
the actual POS I dont have the exact figure of what where I expect our POS. Probably at the
lower end of maybe the higher end of our guidance. I dont I didnt really look at it from a POS
perspective at this point. But I think I can see the trend based on our ship rates and so forth of
inventory against POS improving already.
Tristan Gerra Robert W. Baird & Company, Inc. Analyst
Okay. Thats useful. And then what do you need to see to switch the mix back to higher end product?
Because, the mix impact of the weakening demand really started to take effect for you last May,
late May. Do you need to see a sustainable recovery trend, or is there any other threshold that
youre looking at in terms of moving back to mix up?
Mark King Diodes, Inc. SVP, Sales and Marketing
Yeah, I think it all You want that one, Dr. Lu?
Keh-Shew Lu Diodes, Inc. President and CEO
Okay. I think what we see is we fully utilized our existing capacity. So we have in store capacity,
and we are using that to support the higher-price mix product, and then when we have excess
capacity, we call down the lower GPM to go after the commodity product. So, if that capacity there,
instead of them sitting idle, well, we go out there for the product mix, go out there for the
commodity. And thats been our strategy anyway. So whenever we start to have growth in the higher
GPM product, then we start to reduce number of the commodity product we sell. So it just depends on
the capacity utilization.
Tristan Gerra Robert W. Baird & Company, Inc. Analyst
Great.Thats very useful.Thank you.
Brian Piccioni BMO Capital Markets Analyst
Hi. A couple of questions. You mentioned that you dont know the Thai flood impact for Q1, fiscal
2012. Do you have confidence that your outlook for the fourth quarter has that fully baked in at
this time?
Keh-Shew Lu Diodes, Inc. President and CEO
I think so.
Brian Piccioni BMO Capital Markets Analyst
Okay. Well, that was quick. Sorry?
Keh-Shew Lu Diodes, Inc. President and CEO
Because when this Thai flood come in or happening, they still have inventory, they have the
inventory in the PC manufacturing, so basically in the 4Q, you probably dont see that much effect
from our customer point of view because they have their inventory, okay. But, after in going to the
1Q, how is the recovery? I dont think people very clear.
Brian Piccioni BMO Capital Markets Analyst
Okay.
Keh-Shew Lu Diodes, Inc. President and CEO
Therefore in 4Q, I think we already factor in we already see it, we already play in. And our
customer is already play in.
Brian Piccioni BMO Capital Markets Analyst
On a follow-on base as somewhat unrelated note, but its been gone over earlier in the call, when I
look at the gross margin outlook for the fourth quarter, given the revenue level, its more or less
in line with the gross margin itself is more or less in line with what you posted in the second
quarter of fiscal 09 when revenue was considerably lower. And when you had similar revenue levels
in the second quarter of fiscal 10, you had a much better gross profit margin. And I I
understand I guess what Im working towards is Im trying to figure out for a longer term model
what we could do. And I understand you cant forecast the price of gold, but I thought that you
were moving vigorously to copper and that sort of stuff so how can we think of gross margins
evolving with revenue levels?
Keh-Shew Lu Diodes, Inc. President and CEO
Okay. Yes, we aggressively convert our copper, convert the gold product to the copper. And they
have a several factors affect the conversions. Number 1, the gold price in 2Q to 3Q actually
dropped faster than our conversion rate. I think Rick ought to give you the gold price, dropped
significantly from 2Q to 3Q. And that is hurting us on the GPM line because our conversion rate
cannot be that fast.
Number 2 is we still have a lot of our major customers, they dont want to change the product
during the model year. So for the new product, we give them the copper, they design in with the
copper product, no problem. But trying to ask them to change the current model, current product and
current model who are using the gold, they are kind of resistant. Especially in this tender period
when the demand is soft. We cannot force them to convert. So we kind of delayed that major customer
conversion only to the new model. So from long-term, after the old models gone, when they start to
ramp up the new model, they all will be in the copper. So for the long term, I think you can play
in we will significantly reduce the gold product worldwide product.
Brian Piccioni BMO Capital Markets Analyst
Okay. So I guess what it is, is youve converted the youve done the process engineering but
theres still a heavy mix towards gold. And thats going to take design cycles on behalf of your
customers to alter that, basically.
Keh-Shew Lu Diodes, Inc. President and CEO
Yes, we do we are already qualified, number one. We already do the PCN, Product Changing Notes,
to all our customers for the for Disty, for the second tier is easier to say, well, we need to
convert. But for the major customer, you need their approval to convert. And typically the major
customer, which is our big volume one, they typically are very hesitant to change during the middle
of the model year. Okay. And so any new design, yes, we already give them the copper and then we
need to convert. So, it just takes time.
Brian Piccioni BMO Capital Markets Analyst
Okay, great.Thank you.
Harsh Kumar Morgan Keegan & Co., Inc. Analyst
Dr. Lu, A quick simple follow up on taxes. A lot of the companies that have reported sort of lower
guidance have had much lower taxes. Im wondering why yours shot up are you just trying to make
up for the tax for the year, or is there something else going on geographically in the mix?
Keh-Shew Lu Diodes, Inc. President and CEO
Im going let Rick answer this.
Rick White Diodes, Inc. CFO
Yes, so basically what happened in the third quarter, the tax rate has been going down generally
throughout the year. The issue is that you do your taxes based on a year-to-date basis. For
instance, in the first quarter, you estimate your tax rate for the year, and you accrue at that
level. Second quarter, you do the same thing, and you accrue for that on a year-to-date basis. The
problem was that in the third quarter, the tax rate dropped, but we had already accrued the first
half of the year at a higher rate. And so the third quarter dropped to 3.2% because we adjusted the
accruals that we had in the first half. And then in the fourth quarter, you go back to your
standard rate.
Harsh Kumar Morgan Keegan & Co., Inc. Analyst
You got it. Got it. Great. Thank you, guys.
Rick White Diodes, Inc. CFO
Okay.
Keh-Shew Lu Diodes, Inc. President and CEO
Thank you.
Vijay Rakesh Sterne, Agee & Leach, Inc. Analyst
Hi guys. Just wondering on your sales, whats the distributing OEM and distribution and how much is
selling versus sell-through?
Mark King Diodes, Inc. SVP, Sales and Marketing
Its all sell-in, and its about 55% Disty, 45% OEM.
Vijay Rakesh Sterne, Agee & Leach, Inc. Analyst
Got it. And the second question was, I know Chengdu is the long-term for you, but is the headcount
on Chengdu already done, or is that you start to add headcounts onto Chengdu into Q1?
Keh-Shew Lu Diodes, Inc. President and CEO
For our Chengdu in Q1, well finish the drawing, so the building will be done in Q1, and then we
will put in the MURFI, the equipment, the power, all those in the Q2 to Q3, and well probably
start to do the production in the Q3 to Q4 timeframe.
Vijay Rakesh Sterne, Agee & Leach, Inc. Analyst
Okay, got it. Good. Thanks a lot, guys.
Joe Wittine Longbow Research Analyst
Thanks. Most of my questions have been answered. At this point Ill keep it brief. First off, the
Shanghai issue, the labor and yield issue that was impacting margins in the prior quarter, I think
you said it had 150 BPs of improvement to come. I guess my question is, is that 150 BPs of gross
margin improvement already either in the third quarter or already in the fourth quarter guidance?
Keh-Shew Lu Diodes, Inc. President and CEO
Its already in the fourth quarter guidance.
Joe Wittine Longbow Research Analyst
Thanks.
Keh-Shew Lu Diodes, Inc. President and CEO
And its in the part of the majority is already in the third quarter because we finish I
think the problem, we already have recover in September, okay. So even the third quarter, they
already recover a lot.
Joe Wittine Longbow Research Analyst
Okay, thanks, Dr. Lu. As a quick follow up, Mark, in your initial prepared comments when talking
about the weaker sales environment, you started off by saying there was weakness, especially in
Europe and North America. I thought that was a little bit of a surprising comment given you would
expect a lot of the weakness would be in Asia with you guys. So, could you clarify, was that a
comment saying that the ultimate end sale of consumer electronics and computing in North America
and the European markets will be weak? Or how am I misinterpreting that?
Mark King Diodes, Inc. SVP, Sales and Marketing
Well, to be honest with you, our numbers were down more in North America and Europe because our POP
was down further. And since were sell-in, that affected us more in those areas.
Joe Wittine Longbow Research Analyst
Okay, how about the inventory cuts in those regions versus in Asia? Was it pretty similar or was it
worse in the west, as well?
Mark King Diodes, Inc. SVP, Sales and Marketing
I think that theyre tracking base proportionally.
Joe Wittine Longbow Research Analyst
Okay, thanks, guys.
Operator
Ladies and gentlemen, that concludes the Q&A session. Id now like to turn the call back over to
Dr. Lu for closing remarks.
Keh-Shew Lu Diodes, Inc. President and CEO
Well, thank you for your participation today. Operator, you may now disconnect.
Operator
Thank you. Ladies and gentlemen, that concludes the presentation. Thank you for your participation.
You may now disconnect. Have a great