Hot Growth Special Report 2006 >



Diodes (DIOD)

Diodes makes chips for products that consumers can't get enough of: electronics, cars, computers, and communications gear. Over the past three years, sales have grown an average of 24% a year, while profits have jumped a remarkable 85% annually. In December, 2005, Diodes acquired Taiwan-based Anachip, which makes chips for LCD monitors, wireless access points, portable DVD players, and more. Skyrocketing demand for those products is already boosting Diodes' top and bottom lines. In the quarter ended Mar. 31, the company posted 51% revenue growth and 29% profit growth. And despite some volatility -- typical among small tech companies -- Diode's share price has doubled over the past year, to $40.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

24.1 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

85.4 %

Return on Inv. Capital (3-yr.)

15.6 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

14.7 %

P/E Ratio


No. of Employees


Industry Semiconductors


Location Westlake Village, Calif.
Phone 805 446-4800
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Diodes engages in the design, manufacture, and marketing of discrete and analog semiconductor products worldwide focusing on various end user applications in the consumer electronics, computing, industrial, communications, and automotive sectors. Its products include discrete semiconductor products, including performance Schottky rectifiers; performance Schottky diodes; Zener diodes and performance Zener diodes, such as tight tolerance and low operating current types; and standard, fast, super-fast and ultra-fast recovery rectifiers. The company also offers bridge rectifiers; switching diodes; small signal bipolar transistors; prebiased transistors; MOSFETs; and transient voltage suppressors. In addition, Diodes provides high-density diode, transistor, and mixed technology arrays; silicon wafers; and analog and mixed signal devices. The company offers its products primarily to original equipment manufacturers, electronic manufacturing services, and distributors through a combination of direct sales and marketing personnel, independent sales representatives, and distributors. Diodes has strategic alliances with Lite-On Semiconductor. The company was founded in 1959 and is headquartered in Westlake Village, Calif.

Data provided by Capital IQ
Keh-Shew Lu

Keh-Shew Lu, 59

Chief Executive Officer, President and Director

Total Compensation*

$ 5,356,050

Total Options Value*

$ 3,477,196

* Fiscal Year 2005

Texas Tech University - Master's Degree, National Cheng Kung University - Bachelor's Degree, National Cheng Kung University - BS, Texas Tech University - PhD, Texas Tech University - MS, Texas Tech University - Doctorate

Executive Bio

From September, 1993, to September, 1998, Cariou was a partner and vice-president of sales and marketing of Hydrodyne/FPI. From January, 1991, to September, 1993, Cariou was President of the MAINCO and ESCO manufacturing divisions of Nu-Swift, a public company based in Britain. Keh-Shew Lu serves as the president and CEO of Diodes. Previously, Lu served as senior vice-president of Texas Instruments and general manager of worldwide mixed-signal and logic products from 1998 to 2001. Prior to that, he managed TI's worldwide memory business and served as president of TI Asia. Lu holds a bachelor's degree in electrical engineering from National Cheng Kung University in Taiwan and a master's degree and doctorate in electrical engineering from Texas Tech University.

Management Team

Key Executives

Lu, Keh-Shew;Steven Ho; Carl C. Wertz; Joseph Liu; Mark A. King

Board Directors

Lu, Keh-Shew; Michael R. Giordano; Raymond Soong; C. H. Chen; Carl C. Wertz; Joseph Liu; John M. Stich; M. K. Lu; Shing Mao

Executive Data provided by Capital IQ