Selling, general and administrative expenses were  among the lowest in our industry at  12.7 % of  revenue. • Investment in research and development increased  67 % to  $3.4  million or  1.8 % of revenue. • Net income improved  153 % to a record  $25.6 million, or  $1.65  per share. • We launched a new line of subminiature SOT- 563 discrete semiconductor components, continuing our  range of subminiature discretes and arrays targeted  to markets including mobile phone, digital-audio  player, and portable handheld electronics. • busy lives: Diodes’ products are used in computers,  consumer electronics, industrial, automotive, and  communications devices in many of the conveniences  that have become staples in our modern world.  We realized early on that diversification is another  significant factor in long-term success, and we have  thus pursued a policy of growing our markets both  vertically and horizontally.  We are also responding to an increasing demand,  especially from Europe and Asia, for environmentally- friendly products by eliminating lead (Pb) from lead  plating. Therefore, as we continue to listen and respond  to our customers’ needs… You cannot talk of the future without revisiting the past.  So let us first review the highlights of the year  2004 .  On the technological side, we developed a series of  sophisticated new products during the year: Our balance sheet is strong: in  2004 , Diodes generated  cash flow from operations of  $29.3  million, a  56 %  increase from  2003 , which we used, in part, to reduce  our total debt by  $3.6  million. We ended the year with  $19  million in cash and unused and available credit  facilities of  $32  million. Finally, shareholders’ equity  increased to  $112.1  million, a  57 % increase.  These financial results reflect our continued dedication  to our strategy of producing leading-edge technology  and running efficient, streamlined operations. In all  we do, dedication and commitment are key. On the  technology side, our products keep getting smaller and  more energy-efficient while offering the same powerful  – and oftentimes even increased – performance. We  are bringing to market a broad range of products that  offer very real benefits in both size and performance  for a growing number of next-generation portable and  mobile electronics that are vital to our end-consumers’  9 …We Are Transforming The Future. C. H. Chen President and Chief Executive Officer Raymond Soong Chairman of the Board