Diodes Inc. Reports 67% Drop in 2nd-Quarter Profit

Diodes Inc., a Chatsworth supplier of components for the semiconductor industry, said its second-quarter profit tumbled 67% from a year earlier on a 5% drop in sales.

The company, which attributed the declines to slowing demand for its products and stronger competition, said its net income for the quarter that ended Oct. 31 fell to $58,877, or 2 cents a share, from $180,168, or 8 cents a share, a year earlier. Sales slipped to $3.94 million from $4.14 million.

For the first half of its fiscal year, Diodes’ profit dropped 54% to $165,358, or 4 cents a share, from $357,949, or 17 cents a share, a year earlier. Six-month sales were off 7% to $7.64 million from $8.24 million.

Diodes said part of the declines reflected losses at NAE Inc., a subsidiary in Lynn, Mass., that contributes about 10% of Diodes’ sales. However, Diodes recently halted manufacturing at that facility, which should reduce the unit’s drain on the company’s overall performance, Diodes said.