Revenue during the quarter grew 20.01 percent to $250.69 million from $208.89 million in the previous year period. Gross margin for the quarter expanded 265 basis points over the previous year period to 32.16 percent. Total expenses were 92.04 percent of quarterly revenues, down from 95.23 percent for the same period last year. This has led to an improvement of 318 basis points in operating margin to 7.96 percent.

Operating income for the quarter was $19.95 million, compared with $9.97 million in the previous year period.

Commenting on the results, Dr. Keh-Shew Lu, President and Chief Executive Officer, stated, "Our results in the quarter represented the second consecutive quarter of record revenue and gross profit with revenue reaching $250 million, a key milestone toward achieving our goal of $1 billion in annual revenue. Additionally, our automotive business reached a record, increasing to 7 percent of revenue. We continue to invest in the automotive market through a combination of new products and targeted customer development as we work towards our near-term goal of 10% of revenue."

Dr. Lu concluded, "For the fourth quarter of 2016, we expect revenue to range between $232 million and $248 million, or down 7.5 to 1.1 percent sequentially, and in line with typical seasonality. We expect gross margin to be 32.2 percent, plus or minus 1 percent. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for retention costs and amortization of acquisition-related intangible assets, are expected to be approximately 23.5 percent of revenue, plus or minus 1 percent. We expect other expense to be approximately $3.9 million, and our income tax rate to be 29 percent, plus or minus 3 percent. Shares used to calculate diluted EPS for the fourth quarter are anticipated to be approximately 49.5 million. Please note that purchase accounting adjustments for Pericom and previous acquisitions of $4.4 million after tax are not included in these non-GAAP estimates."

Working capital increases
Diodes Incorporated has recorded an increase in the working capital over the last year. It stood at $566.91 million as at Sep. 30, 2016, up 19.23 percent or $91.44 million from $475.46 million on Sep. 30, 2015. Current ratio was at 4.28 as on Sep. 30, 2016, up from 3.53 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 89 days for the quarter from 158 days for the last year period. Days sales outstanding went down to 82 days for the quarter compared with 90 days for the same period last year.

Days inventory outstanding has decreased to 55 days for the quarter compared with 123 days for the previous year period. At the same time, days payable outstanding went down to 48 days for the quarter from 55 for the same period last year.