Alpha and Omega Semiconductor Limited (“AOS”) (NASDAQ: AOSL)
today reported financial results for the fiscal third quarter of
2024 ended March 31, 2024.
The results for the fiscal third quarter of 2024 ended March 31,
2024 were as follows:
GAAP Financial
Comparison
Quarterly
(in millions, except percentage
and per share data)
(unaudited)
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Revenue
$
150.1
$
165.3
$
132.6
Gross Margin
23.7
%
26.6
%
23.2
%
Operating Loss
$
(10.5
)
$
(1.1
)
$
(14.4
)
Net Loss
$
(11.2
)
$
(2.9
)
$
(18.9
)
Net Loss Per Share - Diluted
$
(0.39
)
$
(0.10
)
$
(0.68
)
Non-GAAP Financial
Comparison
Quarterly
(in millions, except percentage
and per share data)
(unaudited)
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Revenue
$
150.1
$
165.3
$
132.6
Non-GAAP Gross Margin
25.2
%
28.0
%
25.1
%
Non-GAAP Operating Income (Loss)
$
(1.1
)
$
8.4
$
(2.9
)
Non-GAAP Net Income (Loss)
$
(1.2
)
$
7.2
$
(5.9
)
Non-GAAP Net Income (Loss) Per Share -
Diluted
$
(0.04
)
$
0.24
$
(0.21
)
The non-GAAP financial measures in the schedule above and under
the section “Financial Results for Fiscal Q3 Ended March 31, 2024”
below exclude the effect of share-based compensation expenses,
amortization of purchased intangible, legal costs related to
government investigation, equity method investment loss from equity
investee, and income tax effect of non-GAAP adjustments in each of
the periods presented. A detailed reconciliation of GAAP and
non-GAAP financial measures is included at the end of this press
release.
Financial Results for Fiscal Q3 Ended March 31, 2024
- Revenue was $150.1 million, a decrease of 9.2% from the prior
quarter and an increase of 13.2% from the same quarter last
year.
- GAAP gross margin was 23.7%, down from 26.6% in the prior
quarter and up from 23.2% in the same quarter last year.
- Non-GAAP gross margin was 25.2%, down from 28.0% in the prior
quarter and up from 25.1% in the same quarter last year.
- GAAP operating expenses were $46.1 million, up from $45.1
million in the prior quarter and up from $45.2 million in the same
quarter last year.
- Non-GAAP operating expenses were $38.9 million, up from $37.9
million from last quarter and up from $36.2 million in the same
quarter last year.
- GAAP operating loss was $10.5 million, up from $1.1 million of
operating loss in the prior quarter and down from $14.4 million of
operating loss in the same quarter last year.
- Non-GAAP operating loss was $1.1 million as compared to $8.4
million of operating income for the prior quarter and $2.9 million
of operating loss for the same quarter last year.
- GAAP net loss per diluted share was $0.39, compared to $0.10
net loss per share for the prior quarter, and $0.68 net loss per
share for the same quarter a year ago.
- Non-GAAP net loss per share was $0.04 compared to $0.24 net
income per share for the prior quarter and 0.21 net loss per share
for the same quarter a year ago.
- Consolidated cash flow provided by operating activities was
$28.2 million, as compared to $23.5 million of cash flow used in
operating activities in the prior quarter.
- The Company closed the quarter with $174.4 million of cash and
cash equivalents.
AOS Chief Executive Officer Stephen Chang commented, “Our fiscal
Q3 results were in-line with our guidance driven by seasonal
declines in computing, smartphones, and quick chargers. We saw
initial indications that inventory corrections across certain
markets are nearing completion, setting the stage for a gradual
recovery. Seasonality is starting to return as we prepare for PC
and smartphone launches in the Fall.”
Mr. Chang continued, "Looking beyond calendar 2024, AOS is
transitioning from a component supplier to become a comprehensive
solution provider, enabling us to 'go deeper' with increasing BOM
content while penetrating new products and verticals. We are
confident that our leading technology, extensive product portfolio,
and Tier 1 customer base strategically position us well to
outperform the broader markets we serve. We are optimistic about
the future and look forward to executing on the opportunities ahead
of us."
Business Outlook for Fiscal Q4 Ending June 30, 2024
The following statements are based on management's current
expectations. These statements are forward-looking, and actual
results may differ materially. AOS undertakes no obligation to
update these statements.
Our expectations for the fiscal fourth quarter of year 2024 are
as follows:
- Revenue to be approximately $160 million, plus or minus $10
million.
- GAAP gross margin to be 24.7%, plus or minus 1%. We anticipate
non-GAAP gross margin to be 26.3%, plus or minus 1%.
- GAAP operating expenses to be in the range of $47.9 million,
plus or minus $1 million. Non-GAAP operating expenses are expected
to be in the range of $39.5 million, plus or minus $1 million.
- Net interest expense to be approximately $0.5 million, and
- Income tax expense to be approximately $0.9 million.
Conference Call and Webcast
AOS plans to hold an investor teleconference and live webcast to
discuss the financial results for the fiscal third quarter ended
March 31, 2024 today, May 7, 2024 at 2:00 p.m. PT / 5:00 p.m. ET.
To listen to the live conference call, please dial +1 (833)
470-1428 or +1 (404) 975-4839 if dialing from outside the United
States and Canada. The access code is 819299. A live webcast of the
call will also be available in the "Events & Presentations"
section of the company's investor relations website,
http://investor.aosmd.com. The webcast replay will be available for
seven days after the live call on the same website. In addition, a
copy of the script of management's prepared remarks and a live
webcast of the call will also be available in the "Events &
Presentations" section of the company's investor relations website,
http://investor.aosmd.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on current expectations, estimates, forecasts and projections
of future performance based on management's judgment, beliefs,
current trends, and anticipated product performance. These
forward-looking statements include, without limitation, market
trends in the semiconductor industry, our ability to mitigate
economic downturns and current cycles, seasonality of our business,
our ability to penetrate new markets and achieve long-term growth,
our ability to improve our financial performance in 2024, our
ability to increase BOM content, our projected amount of revenue,
gross margin, operating income (loss), income tax expenses, net
income (loss), and share-based compensation expenses, non-GAAP
gross margin, non-GAAP operating expenses, income tax expenses, our
ability to continue to win and acquire market share and other
information under the section entitled “Business Outlook for Fiscal
Q4 Ending June 30, 2024”. Forward-looking statements involve risks
and uncertainties that may cause actual results to differ
materially from those contained in the forward-looking statements.
These factors include, but are not limited to, the state of
semiconductor industry and seasonality of our markets; government
policies on our business operations in China; our lack of control
over the joint venture in China; difficulties and challenges in
executing our diversification strategy into different market
segments; ordering pattern from distributors and seasonality;
changes in regulatory environment and government investigation; our
ability to introduce or develop new and enhanced products that
achieve market acceptance; decline of PC markets; the actual
product performance in volume production; the quality and
reliability of our product, our ability to achieve design wins; the
general business and economic conditions; our ability to maintain
factory utilization at a desirable level; and other risks as
described in our SEC filings, including our Annual Report on Form
10-K for the fiscal year ended June 30, 2023 filed by AOS with the
SEC and other periodic reports we filed with the SEC. Other unknown
or unpredictable factors or underlying assumptions subsequently
proving to be incorrect could cause actual results to differ
materially from those in the forward-looking statements. Although
we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
level of activity, performance, or achievements. You should not
place undue reliance on these forward-looking statements. All
information provided in this press release is as of today's date,
unless otherwise stated, and AOS undertakes no duty to update such
information, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements
presented on a basis consistent with U.S. GAAP, we disclose certain
non-GAAP financial measures for our historical performance,
including non-GAAP gross profit, gross margin, operating expenses,
operating income (loss), net income (loss), diluted earnings per
share ("EPS") and EBITDAS. These supplemental measures exclude,
among other items, share-based compensation expenses, legal and
profession fees related to government investigation, amortization
of purchased intangible, income tax effect of non-GAAP adjustments
and equity method investment (income) loss from equity investee. We
also disclose certain non-GAAP financial measures in our guidance
for the next quarter, including non-GAAP gross margin and operating
expenses. We believe that these historical and forecast non-GAAP
financial measures provide useful information to both management
and investors by excluding certain items and expenses that are not
indicative of our core operating results or do not reflect our
normal business operations. In addition, our management uses
non-GAAP measures to compare our performance relative to forecasts
and to benchmark our performance externally against competitors.
Our use of non-GAAP financial measures has certain limitations in
that such non-GAAP financial measures may not be directly
comparable to those reported by other companies. For example, the
terms used in this press release, such as non-GAAP net income
(loss) or non-GAAP operating expenses, do not have a standardized
meaning. Other companies may use the same or similarly named
measures, but exclude different items, which may not provide
investors with a comparable view of our performance in relation to
other companies. In addition, we included the amount of income tax
effect of non-GAAP adjustments in the non-GAAP net income (loss) of
reconciliation table for all periods presented as the management
believes that such non-GAAP presentation provides useful
information to investors, even though the amounts are not
significant. We seek to compensate for the limitation of our
non-GAAP presentation by providing a detailed reconciliation of the
non-GAAP financial measures to the most directly comparable U.S.
GAAP measures both in the text in this press release and in the
tables attached hereto. Investors are encouraged to review the
related U.S. GAAP financial measures and the reconciliation of
these non-GAAP financial measures to their most directly comparable
U.S. GAAP financial measures.
About Alpha and Omega Semiconductor
Alpha and Omega Semiconductor Limited, or AOS, is a designer,
developer, and global supplier of a broad range of discrete power
devices, wide band gap power devices, power management ICs, and
modules, including a wide portfolio of Power MOSFET, SiC, IGBT,
IPM, TVS, HV Gate Drivers, Power IC, and Digital Power products.
AOS has developed extensive intellectual property and technical
knowledge that encompasses the latest advancements in the power
semiconductor industry, which enables us to introduce innovative
products to address the increasingly complex power requirements of
advanced electronics. AOS differentiates itself by integrating its
Discrete and IC semiconductor process technology, product design,
and advanced packaging know-how to develop high-performance power
management solutions. AOS’ portfolio of products targets
high-volume applications, including portable computers, flat-panel
TVs, LED lighting, smartphones, battery packs, consumer and
industrial motor controls, automotive electronics, and power
supplies for TVs, computers, servers, and telecommunications
equipment. For more information, please visit www.aosmd.com.
The following unaudited condensed consolidated financial
statements are prepared in accordance with U.S. GAAP.
Alpha and Omega Semiconductor
Limited
Condensed Consolidated
Statements of Operations
(in thousands, except
percentages and per share amounts)
(unaudited)
Three Months Ended
Nine Months Ended
March 31, 2024
December 31,
2023
March 31, 2023
March 31, 2024
March 31, 2023
Revenue
$
150,060
$
165,285
$
132,560
$
495,978
$
529,796
Cost of goods sold
114,505
121,284
101,774
365,497
374,841
Gross profit
35,555
44,001
30,786
130,481
154,955
Gross margin
23.7
%
26.6
%
23.2
%
26.3
%
29.2
%
Operating expenses:
Research and development
23,095
22,919
22,578
68,127
65,435
Selling, general and administrative
22,964
22,216
22,610
64,611
69,603
Total operating expenses
46,059
45,135
45,188
132,738
135,038
Operating income (loss)
(10,504
)
(1,134
)
(14,402
)
(2,257
)
19,917
Other income (loss), net
308
(472
)
(513
)
(138
)
(1,432
)
Interest income (expense), net
271
274
5
774
(1,000
)
Net income (loss) before income taxes
(9,925
)
(1,332
)
(14,910
)
(1,621
)
17,485
Income tax expense
611
894
2,517
2,643
5,550
Net income (loss) before income (loss)
from equity method investment
(10,536
)
(2,226
)
(17,427
)
(4,264
)
11,935
Equity method investment income (loss)
from equity investee
(676
)
(697
)
(1,480
)
(4,085
)
1,533
Net income (loss)
$
(11,212
)
$
(2,923
)
$
(18,907
)
$
(8,349
)
$
13,468
Net income (loss) per common share
Basic
$
(0.39
)
$
(0.10
)
$
(0.68
)
$
(0.30
)
$
0.49
Diluted
$
(0.39
)
$
(0.10
)
$
(0.68
)
$
(0.30
)
$
0.46
Weighted average number of common shares
used to compute net income (loss) per share
Basic
28,433
27,939
27,710
28,022
27,537
Diluted
28,433
27,939
27,710
28,022
29,576
Alpha and Omega Semiconductor
Limited
Condensed Consolidated Balance
Sheets
(in thousands, except par
value per share)
(unaudited)
March 31, 2024
June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
174,387
$
195,188
Restricted cash
208
415
Accounts receivable, net
13,254
22,420
Inventories
198,098
183,247
Other current assets
8,604
22,666
Total current assets
394,551
423,936
Property, plant and equipment, net
339,515
357,831
Operating lease right-of-use assets
24,421
24,349
Intangible assets, net
4,328
6,765
Equity method investment
359,244
366,617
Deferred income tax assets
499
536
Other long-term assets
31,491
19,703
Total assets
$
1,154,049
$
1,199,737
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
42,513
$
50,775
Accrued liabilities
73,587
79,533
Payable related to equity investee,
net
14,275
11,950
Income taxes payable
4,490
5,546
Short-term debt
11,584
11,434
Deferred revenue
7,664
8,073
Finance lease liabilities
917
867
Operating lease liabilities
4,909
4,383
Total current liabilities
159,939
172,561
Long-term debt
29,653
38,360
Income taxes payable - long-term
2,978
2,817
Deferred income tax liabilities
26,337
27,283
Finance lease liabilities - long-term
2,522
3,216
Operating lease liabilities -
long-term
20,099
20,544
Other long-term liabilities
23,584
51,037
Total liabilities
265,112
315,818
Shareholders' Equity:
Preferred shares, par value $0.002 per
share:
Authorized: 10,000 shares; issued and
outstanding: none at March 31, 2024 and June 30, 2023
—
—
Common shares, par value $0.002 per
share:
Authorized: 100,000 shares; issued and
outstanding: 35,836 shares and 28,697 shares, respectively at March
31, 2024 and 34,811 shares and 27,654 shares, respectively at June
30, 2023
72
70
Treasury shares at cost: 7,139 shares at
March 31, 2024 and 7,157 shares at June 30, 2023
(79,220
)
(79,365
)
Additional paid-in capital
345,413
329,034
Accumulated other comprehensive loss
(11,125
)
(8,111
)
Retained earnings
633,797
642,291
Total shareholders' equity
888,937
883,919
Total liabilities and shareholders'
equity
$
1,154,049
$
1,199,737
Alpha and Omega Semiconductor
Limited
Selected Cash Flow
Information
( in thousands,
unaudited)
Nine Months Ended March
31,
2024
2023
Net cash provided by operating
activities
$
18,591
$
48,654
Net cash used in investing activities
(28,593
)
(90,603
)
Net cash used in financing activities
(10,923
)
(6,417
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(83
)
(121
)
Net decrease in cash, cash equivalents and
restricted cash
(21,008
)
(48,487
)
Cash, cash equivalents and restricted cash
at beginning of period
195,603
314,651
Cash, cash equivalents and restricted cash
at end of period
$
174,595
$
266,164
Alpha and Omega Semiconductor
Limited
Reconciliation of Condensed
Consolidated GAAP Financial Measures to Non-GAAP Financial
Measures
(in thousands, except
percentages and per share data)
(unaudited)
Three Months Ended
Nine Months Ended
March 31, 2024
December 31,
2023
March 31, 2023
March 31, 2024
March 31, 2023
GAAP gross profit
$
35,555
$
44,001
$
30,786
130,481
$
154,955
Share-based compensation
1,424
1,504
1,723
3,140
5,259
Amortization of purchased intangible
812
812
812
2,435
2,435
Non-GAAP gross profit
$
37,791
$
46,317
$
33,321
$
136,056
$
162,649
Non-GAAP gross margin as a % of
revenue
25.2
%
28.0
%
25.1
%
27.4
%
30.7
%
GAAP operating expense
$
46,059
$
45,135
$
45,188
$
132,738
$
135,038
Share-based compensation
7,041
7,187
8,709
14,934
28,860
Legal costs related to government
investigation
103
16
304
172
556
Non-GAAP operating expense
$
38,915
$
37,932
$
36,175
$
117,632
$
105,622
GAAP operating income (loss)
$
(10,504
)
$
(1,134
)
$
(14,402
)
$
(2,257
)
$
19,917
Share-based compensation
8,465
8,691
10,432
18,074
34,119
Amortization of purchased intangible
812
812
812
2,435
2,435
Legal costs related to government
investigation
103
16
304
172
556
Non-GAAP operating income (loss)
$
(1,124
)
$
8,385
$
(2,854
)
$
18,424
$
57,027
Non-GAAP operating margin as a % of
revenue
(0.7
)%
5.1
%
(2.2
)%
3.7
%
10.8
%
GAAP net income (loss)
$
(11,212
)
$
(2,923
)
$
(18,907
)
$
(8,349
)
$
13,468
Share-based compensation
8,465
8,691
10,432
18,074
34,119
Amortization of purchased intangible
812
812
812
2,435
2,435
Equity method investment (income) loss
from equity investee
676
697
1,480
4,085
(1,533
)
Legal costs related to government
investigation
103
16
304
172
556
Income tax effect of non-GAAP
adjustments
(47
)
(96
)
3
(549
)
244
Non-GAAP net income (loss)
$
(1,203
)
$
7,197
$
(5,876
)
$
15,868
$
49,289
Non-GAAP net margin as a % of revenue
(0.8
)%
4.4
%
(4.4
)%
3.2
%
9.3
%
GAAP net income (loss)
$
(11,212
)
$
(2,923
)
$
(18,907
)
$
(8,349
)
$
13,468
Share-based compensation
8,465
8,691
10,432
18,074
34,119
Amortization and depreciation
13,325
13,573
11,006
39,849
31,162
Equity method investment (income) loss
from equity investee
676
697
1,480
4,085
(1,533
)
Interest expense (income), net
(271
)
(274
)
(5
)
(774
)
1,000
Income tax expense
611
894
2,517
2,643
5,550
EBITDAS
$
11,594
$
20,658
$
6,523
$
55,528
$
83,766
GAAP diluted net income (loss) per
share
$
(0.39
)
$
(0.10
)
$
(0.68
)
$
(0.28
)
$
0.46
Share-based compensation
0.30
0.29
0.38
0.60
1.15
Amortization of purchased intangible
0.03
0.03
0.03
0.08
0.08
Equity method investment (income) loss
from equity investee
0.02
0.02
0.05
0.14
(0.05
)
Legal costs related to government
investigation
0.00
0.00
0.01
0.01
0.02
Income tax effect of non-GAAP
adjustments
(0.00
)
(0.00
)
0.00
(0.02
)
0.01
Non-GAAP diluted net income (loss) per
share
$
(0.04
)
$
0.24
$
(0.21
)
$
0.53
$
1.67
Weighted average number of common shares
used to compute GAAP diluted net income (loss) per share
28,433
27,939
27,710
28,022
29,576
Weighted average number of common shares
used to compute Non-GAAP diluted net income (loss) per share
28,433
29,874
27,710
29,915
29,576
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506803216/en/
Investor and media inquiries:
The Blueshirt Group Gary Dvorchak, CFA In US +1 323 240 5796 In
China +86 (138) 1079-1480 gary@blueshirtgroup.co
Steven Pelayo The Blueshirt Group steven@blueshirtgroup.co +1
(360) 808-5154
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