G`ood afternoon, and welcome to Diodes Incorporated third quarter 2020 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 0 on your touch-tone phone. As a reminder, this conference call is being recorded today, Monday, November 9, 2020. 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 third quarter 2020 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, who is joining us from Taiwan, Chief Financial Officer, Brett Whitmire, Vice President of Worldwide Sales and Marketing, Emily Yang, and Director of Investor Relations, Laura Tu. 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 third quarter 2020.
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 SEC, 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, November ninth, 2020. 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 relations 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. Third quarter revenue was better than expected and increased 7.2% sequentially, driven by strong recovery in Asia, followed by North America, contributing to record revenue in automotive, consumer, and computer end markets. Total worldwide point-of-sale revenue increased 19% sequentially and reached a record in the quarter, driven by record POS revenue in Asia at 20% and 16% growth in both Europe and North America. Our record sales in the automotive market grew 18% sequentially and over 5% year-over-year to 11% of total revenue, reflecting Diodes continued success in expanding application opportunities across new and existing customers, while further increasing Diodes semiconductor content per vehicle. We continued to gain strong momentum with our Pericom IC product in both the automotive and computing markets.
We also saw a resurgence in the consumer market, which has increased approximately 30% from the first quarter of this year. In fact, our total revenue has increased 10% from the first quarter of 2020 at the onset of the pandemic, with net income increasing approximately 35%, demonstrating both the resilience of our business as well as the solid leverage in our operating model. We expect to further extend our growth momentum as we continue to see broad-based improvement across our target end market and the geographies, which at the midpoint of our first quarter guidance represented the highest quarter revenue in the company's history. This expectation excludes any contribution from our proposed acquisition of Lite-On Semiconductor. That is expected to close at the end of November.
With that, let me now turn the call over to Brett to discuss our third quarter financial results and our fourth quarter 2020 guidance in more detail.
Thanks, Dr. Lu, 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 will 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 third quarter 2020 was $309.5 million, an increase of 7.2% as compared to $288.7 million in the second quarter 2020. Gross profit for the third quarter was $111.1 million or 35.9% of revenue, an increase of 9.5% or 70 basis points compared to the second quarter 2020 of $101.5 million, or 35.2% of revenue.
GAAP operating expenses for the third quarter 2020 were $73.2 million or 23.7% of revenue, and on a non-GAAP basis were $68.9 million or 22.3% of revenue, which excluded $4 million of amortization of acquisition-related intangible expense and $0.3 million of acquisition-related costs. This compares to non-GAAP operating expenses in the prior quarter of $64.5 million or 22.3% of revenue. Total other expense amounted to approximately $4.6 million for the quarter, including $2.6 million in foreign currency loss and $3.7 million in interest expense, partially offset by $1.6 million of other income and $138,000 of interest income. Income before taxes and non-controlling interest in the third quarter 2020 was $33.3 million, compared to $26.1 million in the previous quarter. Turning to income taxes, our effective income tax rate for the third quarter was approximately 17.7%.
GAAP net income for the third quarter 2020 was $27.2 million or $0.51 per diluted share, compared to GAAP net income of $21 million or $0.40 per diluted share in the second quarter 2020. The share count used to compute GAAP diluted EPS for the third quarter 2020 was 52.7 million shares. Non-GAAP adjusted net income in the third quarter was $32.8 million, or $0.62 per diluted share. We excluded $3.3 million of non-cash acquisition-related intangible expense and $2.4 million of acquisition-related financing and other costs. This compares to non-GAAP adjusted net income of $28.6 million or $0.54 per diluted share in the previous quarter. EBITDA for the third quarter was $63.3 million or 20.5% of revenue, compared to $55.3 million or 19.2% 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 $39.7 million for the third quarter 2020. Free cash flow was $21.9 million for the third quarter, which included $17.8 million of capital expenditures. Net cash flow in the third quarter was a positive $85.2 million, including an additional $105 million drawdown of debt and the paydown of long-term debt by $49.7 million. Turning to the balance sheet. At the end of the third quarter, cash and cash equivalents plus short-term investments totaled approximately $591 million. Working capital was $893 million, and long-term debt, including the current portion, was $346 million.
Both our cash and debt balances increased in the quarter as a result of actions we took to prepare for our pending acquisition of Lite-On Semiconductor, which is expected to close at the end of November. Similar to last quarter, we took advantage of the low interest rate environment and drew down on our credit line as we continued to purchase New Taiwan dollars as a natural hedge against the US dollar, since the transaction will be funded in New Taiwan dollars. As of the end of the third quarter, we had borrowed and converted the equivalent of $305 million, resulting in our debt and cash balances increasing accordingly. In terms of inventory, at the end of the third quarter, total inventory days increased slightly to approximately 120 in the quarter compared to 119 last quarter. Finished goods inventory days were 32 compared to 30 in the second quarter 2020.
Total inventory dollars increased $4.5 million to approximately $260.3 million, which reflects a $2.6 million increase in raw materials and a $2.1 million increase in work in process, and a $200,000 decrease in finished goods. Capital expenditures on a cash basis for the third quarter 2020 were $17.8 million or 5.8% of revenue, which remains at the low end of our target model of 5%-9%. Now turning to our outlook. Building on our growth momentum in the third quarter and record POS results, we expect fourth quarter revenue to increase to a record of approximately $324 million ±3%, which at the midpoint represents growth of 4.7% sequentially and 7.6% year-over-year, which is significantly above typical seasonal results over the past five years of down 4%.
These revenue expectations exclude any contribution from Lite-On Semiconductor acquisition, which is expected to close at the end of November. We expect GAAP gross margin to be 36% ± 1%. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 22% ± 1% of revenue. We expect non-GAAP net interest expense to be approximately $1.5 million. Our income tax rate is expected to be 18% ± 3%, and shares used to calculate diluted EPS for the fourth quarter are anticipated to be approximately 53 million. Please note that purchase accounting adjustments of $3.3 million after tax for Pericom and previous acquisitions is not included in these non-GAAP estimates. Also not included is $3.3 million of Lite-On acquisition-related financing costs. With that said, I will now turn the call over to Emily Yang.
Thank you, Brett, good afternoon. In the third quarter, revenue increased 7.2% sequentially, which was at the high end of our guidance due to better than expected demand recovery in Asia, followed by North America. Of particular note, worldwide POS revenue increased 19% sequentially, led by record POS in Asia at 20% and up 16% in both Europe and North America. Channel inventory is the lowest being since the end of 2018, with distributor inventory in terms of weeks decreasing quarter-over-quarter and within our defined range of 11-14 weeks. We expect distributor inventory to remain within our normal range of 11-14 weeks in the near term. Looking at the global sales in the third quarter, Asia represented 79% of revenue, Europe 13%, and North America 8%.
In terms of our end market, consumer represent 27% of revenue, mainly driven by consumer pre-Christmas build, industrial 22%, communication 21%, computing 19%, and automotive 11% of revenue. We achieved record revenue in automotive, computing, and consumer end markets. Let me review the end market in greater detail. Beginning with automotive market, as mentioned, Diodes achieved record revenue increasing 5.2% over the prior year period and 18% sequentially, driven by strong sales growth in Asia, followed by North America and Europe. This growth reflects the success achieved by Diodes' total solution sales approach and demand creation efforts in penetrating new and existing automotive customers and applications, in addition to the steadily increasing semiconductor content per vehicle. We were also able to secure several new design wins and grow our automotive business for products including SBR, Zener diodes, switching diodes, power transistors, and TVS.
High-demand applications including battery management system, powertrain, oil pump, 48-volt battery power, automotive lighting, and lighting controllers, as well as emerging applications like mini electric vehicles and micro hybrid also drove our growth. Newly released automotive compliant 40-volt and 5.5-volt DC-DC product family and LDO has gained increasing market attention with new opportunities and design wins for infotainment to ADAS applications. Gate driver ICs and new data line protection products comprising single, dual, and quad-channel TVS in small packages has been successfully designed into various end applications, including infotainment systems, wireless chargers, USB chargers, and user interface systems. Also, during the quarter, we continued to gain market share in brushless DC motor controllers, wireless charging, reverse battery, and protected low switching applications. We are seeing strong momentum on design-ins for our bipolar junction transistors and LED drivers in LED-based automotive retrofit lamps to replace halogen lamps.
We are also seeing BJT design wins in both interior and exterior vehicle lighting, with applications ranging from headlight to the taillight and mood light modules. In the industrial market, revenue increased over 7% sequentially as customer factories began to reopen throughout the quarter in both North America and Europe, but yet still remain below full production output compared to a year ago. One area of focus for Diodes in the industrial market is providing innovative solutions to support customers in reducing their carbon footprint. Additionally, our switching diode products continue to be used in personal protective equipment by the first responders and healthcare providers. Similarly, our MOSFETs, diodes, crystals, crystal oscillators have been adopted in a number of medical applications, ranging from testing equipment to ventilators, especially those to fight COVID-19.
Our switching diodes are also being used in many additional industrial applications, including smart power, high efficiency HVAC, security and controls, smart energy metering, factory automation, elevators, and moving sidewalk control system. In addition, we've seen strong growth for our LDO product family as we continue to see new design wins in industrial, LED lighting, e-meter, and Power-over-Ethernet applications. We also secure several new design wins for our linear LED drivers in applications such as defibrillator, ATM UV light, factory automation, and LED strip lighting. Our SBR and gate driver products also saw a high level of design activities in embedded systems and in high-performance hence telecom power systems, medical equipment, and industrial control systems. In the consumer market, we achieved record revenue in the quarter as a result of strong recovery in Asia.
We saw strong demand for our boost LED drivers for applications such as earphones, skin beauty masks, UV sanitizer boxes, and handheld devices. We also saw tremendous growth for our AC/DC products, mainly driven by 25-volt phone chargers, small appliances, and power adapters, as well as new design wins for LDOs, rectifiers, and BJTs in charging, TV, and set-top box applications. We also achieved significant revenue growth for our haptic controllers and headphone amplifier products in portable gaming and consumer smart speaker applications. We also continue to see strong demand for our TVS and switching diodes in the consumer segment, where growth were driven by the white goods, including high-efficiency washing machines, dishwashers, dryers, vacuum cleaners, and stoves. Turning to communication market, 5G infrastructure continue to be a key focus area, and we are continuing to see expanding opportunities for our products.
Due to 5G's high frequency and limited distance, small cell has become increasingly common to improve the coverage and capacity of the network. Our low jitter, high performance crystal oscillators are needed in certain modules for precision timing needs. In the CPE space, our PCI Express packet switches and clock buffers are finding wide acceptance in many 5G boxes. We also saw strong momentum for PMOS in remote radio units and NMOS for 1 kW or large boost power in 5G base stations to save power consumption. Low voltage hall sensors, TVS, and LDOs also saw increasing design-ins and design wins in smartphone and 5G router applications. Lastly, in the computing market, revenue increased over 7% sequentially and also 14% year-over-year to record levels as work from home and shelter in place continue to drive momentum in notebooks, motherboards, servers, and storage applications, in particular for our Pericom product families.
This quarter, we released 20 output PCI Express Gen 4 and Gen 5 clock buffers, building up on our previous release family of clock buffers and clock generators and enabling us to now offer the most comprehensive clock solutions for server and data center applications. This clock solutions and our frequency control products position us well for the next major server platforms with PCI Express Gen 4 deployment. Momentum for our Pericom product continues in the quarter, and revenue remained at the second highest quarterly level since the acquisition. This product continued to dominate in signal integrity space with PCI Express Gen 4 redrivers, passive muxes, USB 3.2 Gen 2 interface in PC and motherboard applications.
We are also seeing traction for our fully integrated active mux for PCI Express Gen 4 and USB 3.2 Gen 2 by two redriver solutions for USB Type-C applications. We also continue to increase market shares for switching diodes and TVS products using desktop and mobile applications. As notebook, PC, and Chromebook business continue to be strong, primarily driven by work from home, remote education, and e-learning demands due to COVID-19. Our USB power switch product line achieved record high quarterly revenue, and we are seeing more USB Type-C adoption, with many design wins using our popular cross-bar switches product. We have also seen growth momentum for SBR, MOSFET, and Schottky product in applications like USB Type-C and power delivery and ADAS power charging and adapters. In summary, we're very pleased with another quarter of strong results and continued growth despite the current environment.
Our record results in the automotive, consumer, and computing market, combined with record worldwide POS, are setting the stage for Diodes to potentially set a new quarterly revenue record next quarter, in what is typically a seasonally down quarter. We look forward to reporting our continuous progress and closing our Lite-On Semiconductor acquisition at the end of November to further enhance our future opportunities. With that, we now open the floor to questions. Operators.
As a reminder, to ask a question, you will need to press star one on your touchtone telephone. Again, that's star one on your touchtone telephone to ask a question. To withdraw your question, press the pound key. We ask that you please ask one question and one follow-up, and fall back into the queue. Please stand by while we compile the Q&A roster. Our first question comes from the line of Gary Mobley of Wells Fargo Securities. Your question, please.
Hey, everyone. Hope all is well. I want to start out asking for a clarification from you, Emily. You mentioned that point of sale was up 19% versus revenue being up only 7%. I think you mentioned that distributor channel inventory was up sequentially. I'm just trying to reconcile that difference.
Right. Gary, good morning. Our POS increased globally 19%. Asia has actually increased 20%. North America and Europe increased 16%. Our channel inventory is actually decreased to our lowest ever since the end of 2018. It's really at the lower end that we define as a normal range.
Okay. Misheard that. All right. As it relates to your gross margin outlook for the fourth quarter, roughly 36%, and that's on a record quarterly revenue level. You've been at 37% or 38% gross margin in the past at a lower revenue level. I'm wondering what the difference is there. Is it lower utilization? Is it a lower mix of industrial?
Gary, let me address this question. If you really look at the region shift from the regional point of view changed a little bit compared to, I would say 2019 Q3, Q2 range, Asia is definitely contributing a lot more, and usually this is the region also have a little bit lower gross margin %. This also directly impacted pretty much the automotive industrial, because automotive industrial usually has the more busines allocated to Europe and also North America.
Thank you for that.
As the COVID-19 continue to improve, North America and Europe recover more, we believe that that will help us.
That's helpful. Thank you. I'll hop in the queue. Thanks, everyone.
Thank you. Our next question comes from the line of Shawn Harrison of Loop Capital. Your question, please.
Hi. Good morning and good evening, everybody. My first question has to deal with distribution. I'm just wondering if you're getting any signs from distributors, let's say in Asia first and then in the Western world next, if they'd like to add additional inventory, given that you're seeing strong demand. I don't know what your lead times are doing. Maybe you could discuss that. Channel inventory is at the lowest level in two years, so it seems like there's the potential for restocking to occur at some point in time in the near future.
Hi, Shawn. Nice to talk to you. Definitely, if you look at our channel inventory, it's really more on the lower end. As you can see, based on our Q4 guidance, we actually definitely look closely to our booking trend, to our backlog situation, as well as channel inventory and the POS trend, right? That's the reason we actually guided Q4, what you're seeing right now. Definitely, we'll look closely to all these things combined and take the strategy from there.
Emily, do you think distributors will continue to work down your inventory in the fourth quarter, or will they try to at least hold it steady?
Our strategy is keeping within the normal range, 11 to 14 weeks. Definitely, if the inventory at channel is too low, it's not beneficial to Diodes. We're definitely not planning to lower more of the distribution inventory. Again, we try to maintain within the 11 to 14 weeks range that we define as a normal range.
Great. As a follow-up, if my math is right, I think you said you've borrowed $305 million so far. Is there another, I don't know, $125 million-$150 million that you still have to borrow or transfer over for the deal to close, and that's what we should base the go forward interest expense off of?
Yes, Shawn, that's right. Yeah, you got it exactly right.
100 or 150? Sorry.
150.
It's the big-
Yeah. It's $150, is what we expect to borrow in fourth quarter.
Okay. Thank you.
Thank you. Our next question comes from Matthew Ramsay of Cowen. Your line is open.
Thank you very much. Good morning and good evening, everybody. I don't know, for Dr. Lu or for Emily, maybe you could walk us through a little bit, in more detail by end market segment, the strength of your fourth quarter guidance. It's up, I think, pretty materially versus where the consensus had modeled it. Obviously, the POS revenue is strong, and you called that out. Maybe you could walk us through a little bit by division, particularly talking a little bit about automotive, where we've seen a market acceleration as that industry's recovered. Thank you.
Sure. Hi, Matt. Yeah. Let me start with automotive segment. We definitely see very strong momentum in Asia, and we definitely see that momentum will continue into our fourth quarter. We also start seeing North America and Europe regions started with a good momentum of recovering, and we do expect that momentum continues, right? At the same time, we've been working on the content expansion, and that will continue to be our strategy to expand our dollar content. I would go into the industrial. I think overall, factory closure in North America and Europe, we start seeing a lot of improvement. We also start seeing the production output getting close to 100%. From all this data with regional improvements from North America and Europe, we're also pretty upbeat about the industrial for the fourth quarter.
Then for communication, like I explained before, our smartphone is actually in the communication. With the smartphone, especially 5G smartphone market, the cycle shifted a little bit. We're actually seeing continued strong momentum into this segment together with 5G infrastructure. We continue to see a really strong designing and also designing momentum in this area. Then for the computing, this is the area, a lot of shelter in place. We're seeing a lot of good resell in the third quarter and second quarter already, and we do expect some of the momentum will continue to carry through. For the consumer, right. Usually, fourth quarter is not a strong quarter, but we also notice the shelter in place continued to drive some of the gaming consoles I talk about last quarter, and also anything related to fitness and health.
I think the IoT related, I would say, applications that we're still seeing good growth momentum in this area. Across the board, we're seeing almost every single end market segment showing some momentum to growth and also across all the regions.
Thank you for the detail there. That is really helpful. I guess the next follow-on question to that is, as we go into maybe the first half of next year, and you guys aren't going to guide that yet, obviously, but if you can maybe remind us what would normal seasonality look like in the first and second quarters for your business, and if there's any particular thing.
It's very difficult to predict the seasonality. We still go ahead, assume the seasonality like before, which is 1Q will go down, probably say 3%-5%, 2Q going back up 5%-10%, 3Q, probably 5%, 4Q going down. We just go ahead assume the normal seasonality. It may be very strange, like 4Q this year, instead of go down average 4%, 5%, we actually going up 4%, 5%. If you go to look at it's very difficult due to these virus issues. Another thing is that Europe and U.S., the virus is not really settled down yet. Asia look like it's more settled now. Okay, at this moment, we're just thinking the seasonality will be the same.
Since the dire majority of our business is in Asia, and therefore, even automotive, industrial, we still have a lot of business in Asia. I would think it will benefit more than our competitors.
Thank you, Dr. Lu, for that. Just one more quick one from me, and then I'll jump back in the queue. I noticed that the folks at Lite-On have reported their revenue for the September quarter, and I think it's up 3% year-over-year, maybe 4% sequentially versus the June quarter. For the pieces of the business that you plan on acquiring by the end of the month, Dr. Lu, anything unusual or different to call out in their business conditions? Just, I know it's a volatile time for everyone, so if there was anything unusual there that was worth calling out, we'd appreciate it. Thank you.
I think when we acquire LSC, we have certain assumptions. Then, when we see it now, we really can see not much of a difference. The one we're looking for more is the long term. I think from the synergy point of view, we have much long-term view, which is market synergy, product synergy, customer synergy, and manufacturing synergies. From the first three synergy, it take a long time, a much longer time to be able to mature or to get it. Because you are talking about design-in and all those activity, it take one-two years. Especially the automotive, it could be get two-three years before we can get that synergy. The one short-term one we can get the synergy is the loading manufacturing synergies. Currently, their manufacturing is way underloaded, probably 40%-50% loaded.
We are quickly trying to qualify our diode product to be able to manufacture by their manufacturing. We thinking that ramping will be start from second quarter next year and probably up to about 70% loaded by the end of next year. This is a much quicker we can bring the synergy in. One thing, we know their product GP, due to the loading issue, their GP is about 13%, 14%, so it really will pull down our total GP next year. We will try to bring it up. One thing is, it's accretive immediately. This is the key thing.
Even the GP is not as good as the Diodes GP, and the wafer FAB, the manufacturing is underloaded, but we still hoping, or we still can see there will be break-even next year at the end, or the total year will be break-even with the improvement of the manufacturing loading. The total, we believe from the share purchase back and the interest payment, those two, at the end, we should be able to accretive, probably improve our EPS about $0.30, 2021.
Thank you, Dr. Lu. Really appreciate the help.
You're welcome.
Thank you. Thank you once again. To ask a question, please press star one on your touchtone telephone. Again, that's star one on your touchtone telephone to ask a question. Our next question comes from the line of Tristan Gerra of Baird. Your line is open.
Quick question on your manufacturing overall. What do you expect your utilization rates to be in Q4? Are you looking at acquiring more capacity given the trends that we see, low inventories, some pockets of price increases?
Can you repeat the question one more time?
The question is, what do you expect your utilization rates to be this coming quarter? Given the backdrop of very lean distributor inventories, and we're also seeing some pockets of price increases for products like MOSFET, which all point to strong demand. Are you looking at acquiring potentially more capacity ahead given those trends?
Okay.
Brett, do you like go ahead, Dr. Lu.
It's really the growth for next year we're going to focus on is Diodes growth. The reason is LSC gross margin is very low. Next year, we will focus on design-in is for both Diodes and automotive and the LSC product. For the revenue, we were thinking most of them will be coming from the growth of a Diodes product. We don't think the LSC product will grow that much. Okay. Therefore, the utilization for Diodes manufacturing will be improved. If we see the growth, and we see that then Diodes manufacturing utilization will be improved. For the LSC manufacturing, what we want to do will be qualify some product from capable produced by LSC, qualified Diodes product capable produced by LSC. Majority of the utilization improvement will be coming from non-Diodes manufacturers.
We still have a lot of wafer and some OSAT outside of Diodes. That is the portion, that will be the product we're going to focus on, is bring in those loading from outside Diodes operation into LSC operations to improve their utilization.
Right. Tristan, let me add a little bit on top of Dr. Lu's comment. Remember we actually acquired GFAB in Scotland, and we're also ramping up additional capacity, FAB eight inch in-house as well. Addition to what Dr. Lu just mentioned, LSC, both in the fabrication capacity and also assembly capacity, we believe with all this combined plan that we have in place, should be really good to support our 2021 target growth year. That's pretty much our internal capacity, our strategy for longer term. It fitted really well with our past few acquisitions and positioned really well for our growth.
Okay, great. Quick follow-up, you mentioned Pericom ramping in automotive. Are we at the early inning of that ramp, and what's the content and market share implications? Pericom has had, over the past, I would say 18, 24 months, a very successful ramp in server. Is automotive incremental at this point?
Yeah. I think, like I mentioned before, all these applications really at a very early stage of adoption, and a lot of new applications I talked before, related to Pericom product family, are more in the next generation of ADAS infotainment system and stuff like that. Yes, to answer your question, it's at the beginning of this whole cycle.
Great. Thank you.
Thank you. At this time, I'd like to turn the call over to Diodes management for any closing remarks.
Thank you for your participation on today's call. Operator, you may now disconnect.
Thank you, ladies and gentlemen. This concludes the conference call. You may disconnect your lines at this time.