DIODES INC DEL
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
DIOD$77.36+13.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0000950170-24-094180
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000950170-24-123507
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 130 current paragraphs.
95 unchanged; 32 reworded; 2 added; 2 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Gross profit margin was 33.7%, compared to 38.5% in the third quarter of 2023 and 33.6% in the second quarter of 2024;
Current report
During the three months ended September 30, 2024, net sales exceeded expectations, increasing 9.5% with double-digit point of sales growth in Asia. Additionally, our automotive market revenue increased to 19% of product revenue reflecting the Company’s ongoing content expansion and design win initiatives, even though both the automotive and industrial markets continue to undergo inventory and demand adjustments. As further evidence of the market recovery, the Company’s channel inventory continues to improve, coupled with inventory dollars and inventory days decreasing sequentially.
Removed paragraphs (2)
Previous report
Gross profit margin was 33.6%, compared to 41.8% in the second quarter of 2023 and 33.0% in the first quarter of 2024;
Previous report
During the three months ended June 30, 2024, global demand for our products began to recover from the low point experienced in the three months ended March 31, 2024, especially in the computing end market in Asia. Demand improvement during the quarter was most prominent in the computing end market, where Diodes is increasingly participating in the growth of AI servers. Additional positive indicators included improvement in distributor inventory levels with a sequential decrease in channel inventory weeks. Channel resales across the computing, communications, and consumer markets increased in the three months ended June 30, 2024 compared to the three months ended March 31, 2024, and the Company was able to maintain automotive and industrial product revenue at 41% of total, even though the recovery in both markets remained slow due to the ongoing inventory adjustments.
Reworded paragraphs (32)
Previous wording
Net sales were $319.8 million, a decrease of 31.5% from the $467.2 million in the second quarter of 2023 and an increase of 5.9% from the $302.0 million in the first quarter of 2024;
Current wording
Net sales were $350.1 million, a decrease of 13.5% from the $404.6 million in the third quarter of 2023 and an increase of 9.5% from the $319.8 million in the second quarter of 2024;
Previous wording
Gross profit was $107.4 million, a decrease of 45.0% from the $195.4 million in the second quarter of 2023 and an increase of 7.8% from the $99.6 million in the first quarter of 2024;
Current wording
Gross profit was $118.0 million, a decrease of 24.3% from the $155.9 million in the third quarter of 2023 and an increase of 9.9% from the $107.4 million in the second quarter of 2024;
Previous wording
Net income attributable to common stockholders was $8.0 million, compared to $82.0 million in the second quarter of 2023 and $14.0 million in the first quarter of 2024;
Current wording
Net income attributable to common stockholders was $13.7 million, compared to $48.7 million in the third quarter of 2023 and $8.0 million in the second quarter of 2024;
Previous wording
Earnings per share attributable to common stockholders was $0.17 per diluted share, compared to $1.77 per diluted share in the second quarter or 2023 and $0.30 per diluted share in the first quarter of 2024; and
Current wording
Earnings per share attributable to common stockholders was $0.30 per diluted share, compared to $1.05 per diluted share in the third quarter or 2023 and $0.17 per diluted share in the second quarter of 2024; and
Previous wording
Cash flow provided by operations was $14.4 million. We had $17.9 million of capital expenditures. Net cash flow was a negative $2.9 million.
Current wording
Cash flow provided by operations was $54.4 million. We had $15.0 million of capital expenditures. Net cash flow was $49.4 million.
Previous wording
As of June 30, 2024, our cash, cash equivalents, and short-term investments were $273.9 million, and we had access to unused borrowing capacity of $225.0 million under the revolving portion of our U.S. Credit Agreement. We believe our liquidity and our borrowing capacity will allow us to cover our cash needs for working capital, capital expenditures, and acquisitions for at least the next 12 months.
Current wording
As of September 30, 2024, our cash, cash equivalents, and short-term investments were $319.3 million, and we had access to unused borrowing capacity of $225.0 million under the revolving portion of our U.S. Credit Agreement. We believe our liquidity and our borrowing capacity will allow us to cover our cash needs for working capital, capital expenditures, and acquisitions for at least the next 12 months.
Previous wording
Net sales decreased approximately $147.4 million, or 31.5%, for the three months ended June 30, 2024, compared to the same period last year, driven by lower product shipments caused by lower demand across all regions and all end markets. During the three months ended June 30, 2024, weighted-average sales price decreased 19.2% and volume decreased 15.3%, when compared to the same period in 2023. The decline in weighted-average sales price was primarily due to weaker end-user demand in the automotive and industrial markets which collectively comprised 41% and 48% of product revenue for the three months ended June 30, 2024 and 2023, respectively.
Current wording
Net sales decreased approximately $54.6 million, or 13.5%, for the three months ended September 30, 2024, compared to the same period last year, due to lower demand across all regions and all end markets, primarily in the automotive and industrial markets. During the three months ended September 30, 2024, weighted-average sales price decreased 10.1% and volume decreased 3.8%, when compared to the same period in 2023. The decline in weighted-average sales price was primarily due to weaker end-user demand in the automotive and industrial markets which collectively comprised 42% and 45% of product revenue for the three months ended September 30, 2024 and 2023, respectively.
Previous wording
Cost of goods sold decreased approximately $59.4 million for the three months ended June 30, 2024, compared to the same period last year, due to the decreased net sales during the three months ended June 30, 2024. As a percent of sales, cost of goods sold was 66.4% for the three months ended June 30, 2024, compared to 58.2% for the same period last year. Average unit cost decreased approximately 7.8% for the three months ended June 30, 2024, compared to the same period last year.
Current wording
Cost of goods sold decreased approximately $16.7 million for the three months ended September 30, 2024, compared to the same period last year, due to the decreased net sales during the three months ended September 30, 2024. Average unit cost decreased approximately 3.1% for the three months ended September 30, 2024, compared to the same period last year.
Previous wording
For the three months ended June 30, 2024, gross profit decreased approximately 45.0% when compared to the same period last year primarily due to lower net sales, caused by lower demand in all regions and all end-markets. Gross profit margin for the three month periods ended June 30, 2024 and 2023 was 33.6% and 41.8%, respectively. The decrease in gross profit margin was primarily due to
Current wording
For the three months ended September 30, 2024, gross profit decreased approximately 24.3% when compared to the same period last year primarily due to lower net sales, caused by lower demand in all regions and all end-markets. Gross profit margin for the three-month periods ended September 30, 2024 and 2023 was 33.7% and 38.5%, respectively. The decrease in gross profit margin was
Previous wording
-22- the lower average sales price related to end-market mix and secondarily from lower loadings from the overall lower demand, particularly in our wafer fabrication plants associated with foundry service agreements.
Current wording
-22- primarily due to the lower average sales price related to end-market mix and secondarily from lower loadings from the overall lower demand, particularly in our wafer fabrication plants associated with foundry service agreements.
Previous wording
Operating expenses for the three months ended June 30, 2024, decreased $2.1 million when compared to the three months ended June 30, 2023. Operating expenses as a percentage of net sales was 32.4% and 22.7% for the three months ended June 30, 2024 and 2023, respectively. SG&A decreased approximately $9.0 million as compared to the same period last year primarily driven by lower amounts of wages and benefits, specifically equity award related expenses and discretionary benefits being lower. SG&A, as a percentage of net sales, was 18.3% and 14.4% for the three months ended June 30, 2024 and 2023, respectively. Research and development expenses (“R&D”) decreased approximately $1.4 million primarily due to lower amounts of wages and benefits, specifically discretionary benefits. The lower levels of discretionary benefits in SG&A and R&D reflect lower accruals based on the Company’s 2024 performance being lower than in 2023. R&D, as a percentage of net sales, was 10.4% and 7.4% for the three months ended June 30, 2024 and 2023, respectively. Also included in operating expenses for the three months ended was $8.3 million related to restructuring activities undertaken by the Company during the three months ended June 30, 2024.
Current wording
Operating expenses for the three months ended September 30, 2024, decreased $5.9 when compared to the three months ended September 30, 2023. Operating expenses as a percentage of net sales were 27.4% and 25.2% for the three months ended September 30, 2024 and 2023, respectively. SG&A decreased approximately $3.6 million as compared to the same period last year as the company reduced discretionary expenses across payroll, stock performance awards, freight, and sales commission to align with the softer demand environment. SG&A, as a percentage of net sales, was 17.0% and 15.6% for the three months ended September 30, 2024 and 2023, respectively. Research and development expenses (“R&D”) were flat. The lower levels of discretionary benefits in SG&A reflect lower accruals based on the Company’s 2024 performance being lower than in 2023. R&D, as a percentage of net sales, was 9.6% and 8.4% for the three months ended September 30, 2024 and 2023, respectively.
Previous wording
Interest income increased $2.0 million for the three months ended June 30, 2024, compared to the same period last year due to income earned on financial instruments to hedge the Company’s net investment risk as well as higher interest rates earned on short-term investments. Interest expense decreased $1.3 million, or 61.1% for the three months ended June 30, 2024, compared to the same period last year due to lower debt levels partially offset by higher interest rates. Unrealized gain on investments decreased from 2023 due to mark to market adjustments on investments recorded in 2023 and not repeated in 2024.
Current wording
Interest income was flat for the three months ended September 30, 2024, compared to the same period last year. Interest expense decreased $0.4 million, or 49.2% for the three months ended September 30, 2024, compared to the same period last year due to lower debt levels. The change in unrealized (loss) gain on investments in 2024 compared to 2023 was to mark to market adjustments to adjust the value of the investment.
Previous wording
We recognized an income tax expense of approximately $2.6 million and $17.2 million for the three months ended June, 2024, and 2023, respectively. The decrease in income taxes for 2024 compared to 2023 was primarily attributable to a decrease in pretax book income.
Current wording
We recognized an income tax expense of approximately $3.6 million and $10.7 million for the three months ended September 2024 and 2023, respectively. The decrease in income taxes for 2024 compared to 2023 was primarily attributable to a decrease in pretax book income.
Previous wording
Results of Operations for the Six Months Ended June 30, 2024 and 2023
Current wording
Results of Operations for the Nine months Ended September 30, 2024 and 2023
Previous wording
The following table and discussion explains in greater detail our consolidated operating results and financial condition for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Current wording
The following table and discussion explains in greater detail our consolidated operating results and financial condition for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Net sales decreased approximately $312.7 million, or 33.5%, for the six months ended June 30, 2024, compared to the same period last year, compared to the same period last year, driven by lower product shipments caused by lower demand across all regions and all end markets. During the six months ended June 30, 2024, weighted-average sales price decreased 23.5% and volumes decreased 13%,
Current wording
Net sales decreased approximately $367.2 million, or 27.4%, for the nine months ended September 30, 2024, compared to the same period last year, driven by lower product shipments caused by lower demand across all regions and all end markets. During the nine months ended September 30, 2024, weighted-average sales price decreased 19.5% and volumes decreased 9.9%, when compared to the same period in 2023. The decline in weighted-average sales price was primarily due to weaker end-user demand in the automotive
Previous wording
-23- when compared to the same period in 2023. The decline in weighted-average sales price was primarily due to weaker end-user demand in the automotive and industrial markets which collectively comprised 41% and 47% of product revenue for the six months ended June 30, 2024 and 2023, respectively.
Current wording
-23- and industrial markets which collectively comprised 41% and 47% of product revenue for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
The table below sets forth our product revenue as a percentage of total product revenue by end-user market for the six months ended June 30, 2024 and 2023:
Current wording
The table below sets forth our product revenue as a percentage of total product revenue by end-user market for the nine months ended September 30, 2024 and 2023:
Previous wording
Cost of goods sold decreased approximately $129.8 million for the six months ended June 30, 2024, compared to the same period last year, due to the decreased net sales during the six months ended June 30, 2024. As a percent of sales, cost of goods sold was 66.7% for the six months ended June 30, 2024, compared to 58.3% for the same period last year. Average unit cost decreased approximately 12.4% for the six months ended June 30, 2024, compared to the same period last year.
Current wording
Cost of goods sold decreased approximately $146.5 million for the nine months ended September 30, 2024, compared to the same period last year, due to the decreased net sales during the nine months ended September 30, 2024. Average unit cost decreased approximately 9.5% for the nine months ended September 30, 2024, compared to the same period last year.
Previous wording
For the six months ended June 30, 2024, gross profit decreased approximately 46.9% when compared to the same period last year primarily due to lower net sales, caused by lower demand in all regions and all end-markets. Gross profit margin for the six month periods ended June 30, 2024 and 2023 was 33.3% and 41.7%, respectively. The decrease in gross profit margin was primarily due to the lower average sales price related to end-market mix and secondarily from lower loadings from the overall lower demand, particularly in our wafer fabrication plants associated with foundry service agreements.
Current wording
For the nine months ended September 30, 2024, gross profit decreased approximately 40.4% when compared to the same period last year primarily due to lower net sales, caused by lower demand in all regions and all end-markets. Gross profit margin for the nine-month periods ended September 30, 2024 and 2023 was 33.4% and 40.8%, respectively. The decrease in gross profit margin was primarily due to the lower average sales price related to end-market mix and secondarily from lower loadings from the overall lower demand, particularly in our wafer fabrication plants associated with foundry service agreements.
Previous wording
Operating expenses for the six months ended June 30, 2024, decreased $23.5 million when compared to the six months ended June 30, 2023. Operating expenses as a percentage of net sales was 30.6% and 22.9% for the six months ended June 30, 2024 and 2023, respectively. SG&A decreased approximately $26.2 million as compared to the same period last year primarily driven by lower amounts of wages and benefits, specifically payroll and variable compensation due to the lower Company performance. Also included in the lower SG&A was lower selling expense, a result of the lower revenue levels. SG&A, as a percentage of net sales, was 18.0% and 14.8% for the six months ended June 30, 2024 and 2023, respectively. R&D decreased approximately $0.7 million as compared to the same period last year. R&D, as a percentage of net sales, was 10.8% and 7.3% for the six months ended June 30, 2024 and 2023, respectively. Gain on disposal of fixed assets increased $4.8 million for the six months ended June 30, 2024 when compared to the six months ended June 30, 2023. Also included in operating expenses for the six months ended June 30, 2024 was $8.3 million related to restructuring activities undertaken by us during the period to consolidate operations.
Current wording
Operating expenses for the nine months ended September 30, 2024, decreased $29.4 million when compared to the nine months ended September 30, 2023. Operating expenses as a percentage of net sales were 29.5% and 23.6% for the nine months ended September 30, 2024 and 2023, respectively. SG&A decreased approximately $29.9 million as compared to the same period last year as the company reduced discretionary expenses across payroll, stock performance awards, freight, and sales commission to align with the softer demand environment. SG&A, as a percentage of net sales, was 17.7% and 15.0% for the nine months ended September 30, 2024 and 2023, respectively. R&D decreased approximately $1.1 million as compared to the same period last year. R&D, as a percentage of net sales, was 10.4% and 7.6% for the nine months ended September 30, 2024 and 2023, respectively. Gain on disposal of fixed assets increased $5.5 million for the nine months ended September 30, 2024 when compared to the nine months ended September 30, 2023. Also included in operating expenses for the nine months ended September 30, 2024 was $8.0 million related to restructuring activities undertaken by us during the period to consolidate operations.
Previous wording
Interest income increased $4.9 million for the six months ended June 30, 2024, compared to the same period last year due to income earned on financial instruments to hedge our net investment risk as well as higher interest rates earned on short-term investments. Interest expense decreased $2.9 million, or 68.0% for the six months ended June 30, 2024, compared to the same period last year due to lower debt levels partially offset by higher interest rates. Unrealized gain on investments decreased from 2023 due to mark-to-market adjustments on investments recorded in 2023 and not repeated in 2024.
Current wording
Interest income increased $4.9 million for the nine months ended September 30, 2024, compared to the same period last year due to income earned on financial instruments to hedge our net investment risk as well as higher interest rates earned on short-term investments. Interest expense decreased $3.4 million, or 64.7% for the nine months ended September 30, 2024, compared to the same period last year due to lower debt levels. Unrealized gain on investments decreased from 2023 due to mark-to-market adjustments on investments recorded in 2023 and not repeated in 2024.
Previous wording
We recognized an income tax expense of approximately $6.2 million and $33.8 million for the six months ended June 30, 2024 and 2023, respectively. The decrease in income taxes for 2024 compared to 2023 was primarily attributable to a decrease in pretax book income.
Current wording
We recognized an income tax expense of approximately $9.8 million and $44.5 million for the nine months ended September 30, 2024, and 2023, respectively. The decrease in income taxes for 2024 compared to 2023 was primarily attributable to a decrease in pretax book income.
Previous wording
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments, and our credit facilities. Our cash and cash equivalents and restricted cash decreased from $318.5 million at December 31, 2023 to $267.7 million at June 30, 2024. This decrease in cash, cash equivalents, and restricted cash reflects normal operations of the Company. As of June 30, 2024, we had short-term investments totaling $9.2 million. These investments are highly liquid with maturity dates greater than three months at the date of purchase. We generally can access these investments in a relatively short time frame but in doing so we generally forfeit all earned and future interest income.
Current wording
Our primary source of liquidity is cash flow from operations. Additional sources of liquidity are cash and cash equivalents, short-term investments, and our credit facilities. Our cash and cash equivalents and restricted cash decreased from $318.5 million at December 31, 2023 to $317.1 million at September 30, 2024. This decrease in cash, cash equivalents, and restricted cash reflects normal operations of the Company. As of September 30, 2024, we had short-term investments totaling $7.5 million. These investments are highly liquid with maturity dates greater than three months at the date of purchase. We generally can access these investments in a relatively short time frame but in doing so we generally forfeit all earned and future interest income.
Previous wording
At June 30, 2024 and December 31, 2023, our working capital was $859.5 million and $793.9 million, respectively. We expect cash generated by our operations together with existing cash, cash equivalents, short-term investments and available borrowing under credit facilities to be sufficient to cover our cash needs for working capital, capital expenditures and acquisitions for at least the next 12 months.
Current wording
At September 30, 2024 and December 31, 2023, our working capital was $909.7 million and $793.9 million, respectively. We expect cash generated by our operations together with existing cash, cash equivalents, short-term investments and available borrowing under credit facilities to be sufficient to cover our cash needs for working capital, capital expenditures and acquisitions for at least the next 12 months.
Previous wording
Our undistributed foreign earnings continue to be indefinitely reinvested in foreign operations, with limited exceptions related to earnings of certain European and Asian subsidiaries. As of June 30, 2024, our foreign subsidiaries held approximately $209.2 million of cash, cash equivalents and investments of which approximately $67.8 million would be subject to a potential non-U.S. withholding tax if distributed outside the country in which the cash is currently held. The $67.8 million is held in Germany, China, Korea, and Taiwan.
Current wording
Our undistributed foreign earnings continue to be indefinitely reinvested in foreign operations, with limited exceptions related to earnings of certain European and Asian subsidiaries. As of September 30, 2024, our foreign subsidiaries held approximately $215.4 million of cash, cash equivalents and investments of which approximately $93.1 million would be subject to a potential non-U.S.
Previous wording
Our Asia subsidiaries maintain short-term credit facilities with several financial institutions through our foreign entities worldwide totaling $149.6 million. Other than two Taiwanese credit facilities that are collateralized by assets, our foreign credit lines are unsecured, uncommitted, and contain no restrictive covenants. These credit facilities bear interest at SOFR or similar indices plus a specified margin. Interest payments are due monthly on outstanding amounts under the credit lines. The unused and available credit under the various facilities as of June 30, 2024, was approximately $122.9 million, net of $26.3 million advanced under our foreign credit lines and $0.4 million of credit used for import and export guarantee.
Current wording
Our Asia subsidiaries maintain short-term credit facilities with several financial institutions through our foreign entities worldwide totaling $148.7 million. Other than two Taiwanese credit facilities that are collateralized by assets, our foreign credit lines are unsecured, uncommitted, and contain no restrictive covenants. These credit facilities bear interest at SOFR or similar indices plus a specified margin. Interest payments are due monthly on outstanding amounts under the credit lines. The unused and available credit under the various facilities as of September 30, 2024, was approximately $112.6 million, net of $35.7 million advanced under our foreign credit lines and $0.4 million of credit used for import and export guarantee.
Previous wording
Net cash flows from operating activities for the six months ended June 30, 2024 was ($16.7) million. Our net use of cash from operating activities for the six months ended June 30, 2024 resulted from net income of $25.4 million, depreciation and amortization of intangible assets of $68.6 million and share-based compensation of $9.3 million. The increases were offset by a net decrease of $104.4 million due to changes in operating asset and liability accounts, and non-cash gains and other income of $15.8 million.
Current wording
Net cash flows from operating activities for the nine months ended September 30, 2024 was $37.6 million. Our net use of cash from operating activities for the nine months ended September 30, 2024 resulted from net income of $40.6 million, depreciation and amortization of intangible assets of $90.8 million and share-based compensation of $16.1 million. The increases were offset by a net decrease of $104.9 million due to changes in operating asset and liability accounts, and non-cash gains and other income of $15.8 million.
Previous wording
During the six months ended June 30, 2024, we used cash to fund increases in accounts receivable as sales began to improve in the second quarter of 2024, and used cash to fund increases in inventories, particularly in finished goods, to improve our product availability in a dynamic market environment. We also used cash to decrease accounts payable and accrued liabilities by as part of normal business operations.
Current wording
During the nine months ended September 30, 2024, we generated cash through the collection in accounts receivable and used cash to fund increases in inventories, particularly in finished goods, to improve our product availability in a dynamic market environment. We also used cash to decrease accounts payable and accrued liabilities as part of normal business operations.
Previous wording
Net cash flows provided by operating activities for the six months ended June 30, 2023 resulted from net income of $155.7 million, depreciation and amortization of intangible assets of $67.9 million, and share-based compensation of $17.5 million. The increases were partially offset by a decrease in operating asset and liability accounts of $32.0 million and a non-cash investment gain of $16.0 million.
Current wording
Net cash flows provided by operating activities for the nine months ended September 30, 2023 was $242.5 million. Net cash flows provided by operating activities for the nine months ended September 30, 2023 resulted from net income of $205.5 million, depreciation and amortization of intangible assets of $102.7 million and share-based compensation of $23.4 million. The increases were partially offset by a decrease in operating asset and liability accounts of $65.3 million and a non-cash investment gain of $17.6 million.
Previous wording
Net cash and cash equivalents from investing activities was ($30.8) million for the six months ended June 30, 2024. Net cash and cash equivalents used in investing activities for the six months ended June 30, 2024 was primarily due to purchases of property, plant, and equipment of $38.3 million, or 6.2% of net sales. We expect capital expenditures for the twelve months ended December 31, 2024 to be within our target model of 5% to 9% of net sales. Net cash and cash equivalents used in investing activities was $97.5 million for the six months ended June 30, 2023. Net cash and cash equivalents used in investing activities for the six months ended June 30, 2023 was primarily due to purchases of property, plant, and equipment of $85.0 million, or 9.1% of net sales, due to the expansion of a wafer fabrication facility located in Hsinchu Science Park in Taiwan and the additional investment of $13.9 million in a privately held wafer design company.
Current wording
Net cash and cash equivalents from investing activities was ($48.9) million for the nine months ended September 30, 2024. Net cash and cash equivalents used in investing activities for the nine months ended September 30, 2024 was primarily due to purchases of property, plant, and equipment of $53.3 million, or 5.5% of net sales. This outflow of cash to purchase property, plant and equipment was partially offset by the receipt of an insurance recovery of $4.7 million and net proceeds from the sale of short-term investments of $2.5 million. We expect capital expenditures for the twelve months ended December 31, 2024 to be within our target model of 5% to 9% of net sales. Net cash and cash equivalents used in investing activities was $129.4 million for the nine months ended September 30, 2023. Net cash and cash equivalents used in investing activities for the nine months ended September 30, 2023 was primarily due to purchases of property, plant and equipment of $123.5 million, or 9.2% of net sales, due to the expansion of a wafer fabrication facility located in Hsinchu Science Park in Taiwan and the additional investment of $13.9 million in a privately held wafer design company.
Previous wording
Net cash and cash equivalents from financing activities was ($17.0) million for the six months ended June 30, 2024. Net cash provided by financing activities in the six months ended June 30, 2024 consisted primarily of $13.5 million of net decreases in our debt and taxes paid on net share settlements of $5.7 million. Net cash and cash equivalents used in financing activities was $106.7 million for the six months ended June 30, 2023. Net cash used in financing activities in the six months ended June 30, 2023 consisted primarily of $95.2 million of net reductions in our debt and taxes paid on net share settlements of $10.6 million.
Current wording
Net cash and cash equivalents from financing activities was ($15.5) million for the nine months ended September 30, 2024. Net cash provided by financing activities in the nine months ended September 30, 2024 consisted primarily of $3.8 million of net decreases in our debt and taxes paid on net share settlements of $9.5 million. Net cash and cash equivalents used in financing activities was $150.7 million for the nine months ended September 30, 2023. Net cash used in financing activities in the nine months ended September 30, 2023 consisted primarily of $130.4 million of net reductions in our debt and taxes paid on net share settlements of $15.6 million.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
-24- withholding tax if distributed outside the country in which the cash is currently held. The $93.1 million is held in Germany, China, Korea, and Taiwan.