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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
_________________________________

FORM 8-K
 
_________________________________

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2024
 
 _________________________________

Alpha and Omega Semiconductor Limited
(Exact name of registrant as specified in its charter)
 
  
Bermuda001-3471777-0553536
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(I.R.S. Employer
Identification No.)
Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
(Address of principal registered offices)
(408) 830-9742
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common SharesAOSLThe NASDAQ Global Select Market


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐







Item 2.02.    Results of Operations and Financial Condition.

The information in Item 2.02 of this Current Report, including the accompanying exhibit, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of Section 18. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing.

On August 7, 2024, Alpha and Omega Semiconductor Limited (the “Company”) issued a press release regarding its financial results for the fiscal fourth quarter and fiscal year ended June 30, 2024. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.







SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 7, 2024
Alpha and Omega Semiconductor Limited
By:/s/    Yifan Liang
Name:Yifan Liang
Title:Chief Financial Officer and Corporate Secretary
 




                                                    EXHIBIT 99.1

Alpha and Omega Semiconductor Reports Financial Results for Fiscal Fourth Quarter and Fiscal Year Ended June 30, 2024

SUNNYVALE, California, August 7, 2024 (BUSINESS WIRE) - Alpha and Omega Semiconductor Limited (“AOS”) (NASDAQ: AOSL), today reported financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2024.


The results for the fiscal fourth quarter ended June 30, 2024 were as follows:

GAAP Financial Comparison
Quarterly
(in millions, except percentage and per share data)
(unaudited)
Three Months Ended
June 30, 2024March 31, 2024June 30, 2023
Revenue$161.3 $150.1 $161.5 
Gross Margin25.7 %23.7 %27.6 %
Operating Income (Loss)$(1.5)$(10.5)$2.6 
Net Loss $(2.7)$(11.2)$(1.1)
Net Loss Per Share - Diluted$(0.09)$(0.39)$(0.04)


Non-GAAP Financial Comparison
Quarterly
(in millions, except percentage and per share data)
(unaudited)
Three Months Ended
June 30, 2024March 31, 2024June 30, 2023
Revenue$161.3 $150.1 $161.5 
Non-GAAP Gross Margin26.4 %25.2 %28.5 %
Non-GAAP Operating Income (Loss)$3.2 $(1.1)$6.9 
Non-GAAP Net Income (Loss) $2.6 $(1.2)$5.7 
Non-GAAP Net Income (Loss) Per Share - Diluted$0.09 $(0.04)$0.19 
                

The non-GAAP financial measures in the schedule above and under the section "Financial Results for Fiscal Q4 Ended June 30, 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.

The results for the fiscal year ended June 30, 2024 and 2023 were as follows:
                


GAAP Financial Comparison
Annually
(in millions, except percentage and per share data)
(unaudited)
Year Ended June 30,
20242023
Revenue$657.3 $691.3 
Gross Margin26.2 %28.9 %
Operating Income (Loss)$(3.8)$22.5 
Net Income (Loss)$(11.1)$12.4 
Net Income (Loss) Per Share - Diluted$(0.39)$0.42 


Non-GAAP Financial Comparison
Annually
(in millions, except percentage and per share data)
(unaudited)
Year Ended June 30,
20242023
Revenue$657.3 $691.3 
Non-GAAP Gross Margin27.2 %30.2 %
Non-GAAP Operating Income$21.7 $63.9 
Non-GAAP Net Income $18.5 $55.0 
Non-GAAP Net Income Per Share - Diluted$0.62 $1.86 


The non-GAAP financial measures in the schedule above 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 for fiscal years ended June 30, 2024 and 2023. A detailed reconciliation of GAAP and non-GAAP financial measures is included at the end of this press release.

Financial Results for Fiscal Q4 Ended June 30, 2024
•Revenue was $161.3 million, flat from the same quarter last year and an increase of 7.5% quarter-over-quarter.
•GAAP gross margin was 25.7%, down from 27.6% year-over-year and up from 23.7% in the prior quarter.
•Non-GAAP gross margin was 26.4%, down from 28.5% from the same quarter last year and up from 25.2% in the prior quarter.
•GAAP operating expenses were $42.9 million, down from $46.1 million in the prior quarter and up from $42.0 million from the same quarter last year.
•Non-GAAP operating expenses were $39.3 million, an increase of $0.4 million from last quarter and an increase of $0.2 million from the same quarter last year.
•GAAP operating loss was $1.5 million, as compared to an operating income of $2.6 million from the same quarter last year and an operating loss of $10.5 million in the prior quarter.
•Non-GAAP operating income was $3.2 million as compared to $6.9 million for the same quarter last year and an operating loss of $1.1 million from last quarter.
•GAAP net loss per share was $0.09, compared to $0.39 for the prior quarter and $0.04 per share for the same quarter last year.
•Non-GAAP earnings per share was $0.09, compared to $0.04 net loss per share for the prior quarter and $0.19 net earnings per share for the same quarter last year.
•Consolidated cash flow provided by operating activities was $7.1 million, as compared to $28.2 million in prior quarter.
•The Company closed the quarter with $175.1 million of cash and cash equivalents.



AOS Chief Executive Officer Stephen Chang commented, “Our fiscal Q4 results were in-line with our guidance driven by sequential growth in each of our major segments. We saw relative strength coming from gaming, tablets, e-mobility, A.I., and home appliances, while the PC segment is taking longer to recover. Inventory corrections across the majority of our end markets are now largely behind us and seasonality is returning.”

Mr. Chang concluded, “Looking into the rest of calendar year 2024, we anticipate further recovery in our seasonally strongest September quarter driven by fall smartphone launches, PCs, gaming, and wearables. We are excited about opportunities in A.I. and we are working on multiple prospects. Looking to the next cycle, we are poised for growth, bolstered by advanced technology, a diversified product portfolio addressing a broadening array of end markets, and a premier customer base across all business lines.”

Business Outlook for Fiscal Q1 Ending September 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.

•Revenue is expected to be $180 million plus or minus $10 million.
•Gross margin is expected to be 25.0% plus or minus 1%. Non-GAAP gross margin is expected to be 26.4% plus or minus 1%.
•GAAP operating expenses are expected to be in the range of $47.0 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $40.0 million plus or minus $1 million.
•Interest expense to be approximately equal to interest income, and
•Tax expense is expected to be in the range of $0.9 million to $1.1 million.


Conference Call and Webcast

AOS plans to hold an investor teleconference and live webcast to discuss the financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2024 today, August 7, 2024 at 2:00 p.m. PT / 5:00 p.m. ET. To listen to the live conference call, please dial +1 (844) 200-6205 or +1 (929) 526-1599 if dialing from outside the United States and Canada. The access code is 376246. 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 pursue new opportunities, including A.I. markets, 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 grow our sales and market share, and other information under the section entitled “Business Outlook for Fiscal Q1 Ending September 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; decline of PC markets ; 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; government policies on our business operations in China; 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, 2024 to be 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 costs related to government investigation, amortization of purchased


intangible, income tax effect of non-GAAP adjustments and equity method investment 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 consolidated financial statements are prepared in accordance with U.S. GAAP.

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


Alpha and Omega Semiconductor Limited
Condensed Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)
Three Months EndedFiscal Year Ended
 June 30,
2024		March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Revenue$161,296 $150,060 $161,525 $657,274 $691,321 
Cost of goods sold119,859 114,505 116,944 485,356 491,785 
Gross profit41,437 35,555 44,581 171,918 199,536 
Gross margin25.7 %23.7 %27.6 %26.2 %28.9 %
Operating expenses:
Research and development21,813 23,095 22,711 89,940 88,146 
Selling, general and administrative21,123 22,964 19,258 85,734 88,861 
Total operating expenses42,936 46,059 41,969 175,674 177,007 
Operating income (loss)(1,499)(10,504)2,612 (3,756)22,529 
Other income (loss), net65 308 (298)(73)(1,730)
Interest income (expense), net412 271 (87)1,186 (1,087)
Net income (loss) before income taxes(1,022)(9,925)2,227 (2,643)19,712 
Income tax expense 1,006 611 387 3,649 5,937 
Net income (loss) before loss from equity method investment(2,028)(10,536)1,840 (6,292)13,775 
Equity method investment loss from equity investee(704)(676)(2,944)(4,789)(1,411)
Net income (loss)(2,732)(11,212)(1,104)(11,081)12,364 
Net income (loss) per common share
Basic$(0.09)$(0.39)$(0.04)$(0.39)$0.45 
Diluted$(0.09)$(0.39)$(0.04)$(0.39)$0.42 
Weighted average number of common shares used to compute net income (loss) per share:
Basic28,879 28,433 27,598 28,236 27,522 
Diluted28,879 28,433 27,598 28,236 29,528 



Alpha and Omega Semiconductor Limited
Condensed Consolidated Balance Sheets
(in thousands, except par value per share)
(unaudited)
 June 30, 2024June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents$175,127 $195,188 
Restricted cash413 415 
Accounts receivable, net12,546 22,420 
Inventories195,750 183,247 
Other current assets10,506 22,666 
Total current assets394,342 423,936 
Property, plant and equipment, net336,619 357,831 
Operating lease right-of-use assets, net25,050 24,349 
Intangible assets, net3,516 6,765 
Equity method investment356,039 366,617 
Deferred income tax assets 549 536 
Other long-term assets28,898 19,703 
Total assets$1,145,013 $1,199,737 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$45,084 $50,775 
Accrued liabilities72,371 79,533 
Payable related to equity investee, net13,682 11,950 
Income taxes payable2,798 5,546 
Short-term debt11,635 11,434 
Deferred revenue2,591 8,073 
Finance lease liabilities935 867 
Operating lease liabilities5,137 4,383 
Total current liabilities154,233 172,561 
Long-term debt26,724 38,360 
Income taxes payable - long-term3,591 2,817 
Deferred income tax liabilities26,416 27,283 
Finance lease liabilities - long-term2,282 3,216 
Operating lease liabilities - long-term20,499 20,544 
Other long-term liabilities19,661 51,037 
Total liabilities253,406 315,818 
Commitments and contingencies (Note 14)
Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2024 and 2023— — 
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 36,107 shares and 28,969 shares, respectively at June 30, 2024 and 34,811 shares and 27,654 shares, respectively at June 30, 202372 70 
Treasury shares at cost; 7,138 shares at June 30, 2024 and 7,157 shares at June 30, 2023(79,213)(79,365)
Additional paid-in capital353,109 329,034 
Accumulated other comprehensive loss(13,419)(8,111)
Retained earnings631,058 642,291 
Total equity891,607 883,919 
Total liabilities and equity$1,145,013 $1,199,737 




Alpha and Omega Semiconductor Limited
Selected Cash Flow Information
( in thousands)
(unaudited)
Fiscal Year Ended June 30,
20242023
Net cash provided by operating activities$25,710 $20,473 
Net cash used in investing activities(35,744)(109,630)
Net cash used in financing activities(9,903)(29,611)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(126)(280)
Net decrease in cash, cash equivalents and restricted cash(20,063)(119,048)
Cash, cash equivalents and restricted cash at beginning of year195,603 314,651 
Cash, cash equivalents and restricted cash at end of year$175,540 $195,603 


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
Fiscal Year Ended
June 30,
2024		March 31,
2024		June 30,
2023		June 30,
2024		June 30,
2023
GAAP gross profit$41,437 $35,555 $44,581 $171,918 $199,536 
Share-based compensation294 1,424 592 3,434 5,851 
Amortization of purchased intangible812 812 812 3,247 3,247 
Non-GAAP gross profit$42,543 $37,791 $45,985 $178,599 $208,634 
Non-GAAP gross margin as a % of revenue26.4 %25.2 %28.5 %27.2 %30.2 %
GAAP operating expense$42,936$46,059$41,969$175,674$177,007
Share-based compensation3,2737,0412,77718,20731,637
Legal costs related to government investigation35210399524656
Non-GAAP operating expense$39,311 $38,915 $39,093 $156,943 $144,714 
GAAP operating income (loss)$(1,499)$(10,504)$2,612$(3,756)$22,529
Share-based compensation3,5678,4653,36921,64137,488
Amortization of purchased intangible8128128123,2473,247
Legal costs related to government investigation35210399524656
Non-GAAP operating income (loss)$3,232$(1,124)$6,892$21,656$63,920
Non-GAAP operating margin as a % of revenue2.0 %(0.7)%4.3 %3.3 %9.2 %
GAAP net income (loss) $(2,732)$(11,212)$(1,104)$(11,081)$12,364 
Share-based compensation3,567 8,465 3,369 21,641 37,488 
Amortization of purchased intangible812 812 812 3,247 3,247 
Equity method investment loss from equity investee704 676 2,944 4,789 1,411 
Legal costs related to government investigation352 103 99 524 656 
Income tax effect of non-GAAP adjustments(78)(47)(397)(627)(153)
Non-GAAP net income (loss) $2,625 $(1,203)$5,723 $18,493 $55,013 
Non-GAAP net margin as a % of revenue1.6 %(0.8)%3.5 %2.8 %8.0 %
GAAP net income (loss) $(2,732)$(11,212)$(1,104)$(11,081)$12,364 
Share-based compensation3,567 8,465 3,369 21,641 37,488 
Amortization and depreciation13,908 13,325 12,045 53,757 43,207 
Equity method investment loss from equity investee704 676 2,944 4,789 1,411 
Interest expense (income), net(412)(271)86 (1,186)1,087 
Income tax expense 1,006 611 387 3,649 5,937 
EBITDAS$16,041 $11,594 $17,727 $71,569 $101,494 
GAAP diluted net income (loss) per share $(0.09)$(0.39)$(0.04)$(0.37)$0.42 
Share-based compensation0.12 0.30 0.11 0.72 1.27 
Amortization of purchased intangible0.03 0.03 0.03 0.11 0.11 
Equity method investment loss from equity investee0.02 0.02 0.10 0.16 0.05 
Legal costs related to government investigation0.01 0.00 0.00 0.02 0.02 
Income tax effect of non-GAAP adjustments            (0.00)              (0.00)(0.01)(0.02)(0.01)
Non-GAAP diluted net income (loss) per share $0.09 $(0.04)$0.19 $0.62 $1.86 


Weighted average number of common shares used to compute GAAP diluted net income (loss) per share28,879 28,433 27,598 28,236 29,528 
Weighed average number of common shares used to compute Non-GAAP diluted net income (loss) per share30,463 28,433 29,382 30,052 29,528 



Exhibit 99.2


Alpha and Omega Semiconductor Limited
Prepared Remarks for the Investor Conference Call
for the Quarter and Fiscal Year Ended June 30, 2024

August 7, 2024
Steve Pelayo

Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor’s conference call to discuss fiscal 2024 fourth quarter and annual financial results. I am Steven Pelayo, Investor Relations representative for AOS. With me today are Stephen Chang, our CEO, and Yifan Liang, our CFO. This call is being recorded and broadcast live over the Web. A replay will be available for seven days following the call via the link in the Investor Relations section of our website.

Our call will proceed as follows today. Stephen will begin business updates including strategic highlights, and a detailed segment report. After that, Yifan will review the financial results and provide guidance for the September quarter. Finally, we will have the Q&A session.

The earnings release was distributed over wire today, August 7, 2024, after the market close. The release is also posted on the company's website. Our earnings release and this presentation include non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release.

We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligations to update the information provided in today's call.

Now, I will turn the call over to our CEO, Stephen Chang. Stephen?





Stephen Chang

Thank you, Steve. Welcome to Alpha and Omega’s fiscal Q4 earnings call. I will begin with a high-level overview of our results and then jump into segment details.

We delivered fiscal Q4 results in-line with our guidance for revenue and gross margin. Revenue was $161.3 million, non-GAAP gross margin was 26.4%. Non-GAAP EPS was $0.09.

As we mentioned last quarter, inventory corrections across the majority of our end markets are now largely behind us, and seasonality is returning to more normalized trends. While visibility on the slope of the recovery is limited, the increasing breadth of demand is encouraging. For the June quarter, we saw sequential growth in each of our major segments with relative strength coming from tablets, A.I, and graphics cards in our Computing segment; gaming and home appliances within Consumer; e-mobility, DC motors and quick chargers in the Industrial segment; and a regional shift towards a Tier 1 US smartphone customer within Communications. The PC segment, however, is taking longer to recover than originally expected.


Looking into the September quarter, we expect PCs and servers to grow sequentially while tablets sustain the strong current run-rate within Computing. The Consumer segment will likely see continued strength in gaming and a strong seasonal pick up from wearables, offset by slower home appliances. Smartphones will drive sequential growth in Communication, while AC-DC power supplies and quick chargers are relatively stronger in Industrial.


Looking beyond 2024, AOS is transitioning from a component supplier to a total solutions provider in many areas where we can leverage our core strengths in high-performance silicon, advanced packaging and intelligent ICs to penetrate new opportunities and drive higher BOM content. We are building on customer relationships to capture market share with a broader product portfolio. For example, we are leveraging our strength in graphics cards and introducing new Vcore products for opportunities in advanced computing and A.I. datacenters. Within smartphones, we expect to benefit from trends towards foldable, flexible and multiple screens; increasing A.I. integration; as well as dual-cell batteries and higher charging currents for faster charging times. Beyond Computing and Communication segments, we remain optimistic on the underlying power trends in adjacent markets such as solar, motors and e-mobility, gaming, home appliances and power tools. These examples all represent continued growth opportunities primarily driven by the global shift towards more efficient and sustainable energy solutions.

With that, let me now cover our segment results and provide some guidance by segment for the next quarter.



Starting with Computing. June quarter revenue was up 37.6% year-over-year and 4.4% sequentially and represented 44.4% of total revenue. These results were slightly below our original expectation for mid-to-upper single digit growth. As mentioned before, we saw relative strength from tablets, A.I, and graphics cards in the quarter, offset by a slower PC market recovery. Notably, tablet revenue was a record high, and the contribution from A.I. and datacenter related applications continued to grow.

We are excited about opportunities in A.I.. Demand for accelerator cards remains steady as the industry prepares for a platform transition ramping next year. We are working on multiple opportunities leveraging our existing relationship with a key graphics card maker, as well as our product portfolio including new multiphase Vcore controllers and power stage solutions for advanced computing. We are also seeing some ramp in September from a leading power supply maker that is a key supplier to the same A.I./graphics customer. We are selling our high-performance medium voltage MOSFETs that go into intermediate bus converters for DC to DC power conversion.

Looking forward into the September quarter, we expect the Computing segment to grow mid-single digits sequentially as PCs see a seasonal pickup, while tablets, A.I. accelerators and graphics cards remain strong.

Turning to the Consumer segment, June quarter revenue was down 35.5% year-over-year, but up 19.7% sequentially and represented 17.5% of total revenue. The results were in-line with our forecast for double digit sequential growth and were primarily driven by gaming and home appliances. It is now clear that the inventory correction in gaming is behind us and a seasonal build is underway. The strength in home appliances was better-than-expected as government incentives in China drove demand.

For the September quarter, we forecast low double-digits sequential growth in the consumer segment driven by strong seasonal pick-up from wearables and continued strength in gaming, offset by slower home appliances.

Next, let’s discuss the Communications segment, revenue in the June quarter was up 59% year-over-year and 2.1% sequentially, and represented 17% of total revenue. These results were above our flattish sequential expectations as we began to see the seasonal pick-up from a Tier 1 U.S. smartphone customer, offset by sequential declines from Korea and China OEMs.

Looking ahead, we anticipate double-digit sequential growth in the September quarter on seasonal strength ahead of new smartphone launches in the US and increasing demand from China smartphone OEMs. We are benefitting from a mix shift to more premium phones and we anticipate rising growth in BOM content as phone makers increase battery charging currents.

Now, let’s talk about our last segment, Power Supply and Industrial, which accounted for 17.1% of total revenue and was down 33.7% year-over-year, but up 11.3% sequentially. The results were slightly ahead of our forecast for mid-to-upper


single digit sequential growth driven by strength in the e-mobility segment for e-bikes and e-scooters and DC fans for applications in areas such as datacenters. The inventory correction in quick chargers appears complete as we also saw the beginnings of recovery in the June quarter. Lastly, power tools continued at a steady pace in June.

For the September quarter, we expect this segment to grow 15-20% sequentially primarily driven by a solid uptick from quick chargers, as well as strength from AC-DC power supplies tied to the seasonal build in PCs.

In closing, the June quarter was in-line with our expectations and marked a solid conclusion to our fiscal 2024 performance. The rolling inventory corrections we experienced over the past year in nearly every one of our end markets are now largely behind us and some markets like smartphones are starting to return, while new markets like A.I. are emerging. We expect seasonal growth in the September quarter primarily driven by PCs, smartphones, wearables, and gaming.

Looking to the next cycle, we are poised for growth, bolstered by advanced technology, a diversified product portfolio addressing a broadening array of end markets, and a premier customer base across all business lines. Power management underpins key trends such as AI, digitalization, connectivity, and electrification – especially as we move towards a sustainable, low-carbon society. We are steadfast in executing our technology roadmap. Customers increasingly view us as a total solutions provider, allowing us to capture a greater portion of the bill-of-materials, and ultimately supporting growth that outpaces industry over the long run.

With that, I will now turn the call over to Yifan for a discussion of our fiscal fourth quarter and fiscal year financial results and our outlook for the next quarter.

Yifan Liang (Chief Financial Officer)

Thank you, Stephen. Good afternoon, everyone and thank you for joining us.

Revenue for the quarter was $161.3 million, up 7.5% sequentially and flat year-over-year. Seasonal demand was relatively broad-based in the June quarter and confirmed the inventory correction is largely complete.

In terms of product mix, DMOS revenue was $102.1 million, up 8.8% sequentially and 6.7% over last year. Power IC revenue was $52.7 million, up 5.5% from the prior quarter and down 10.5% from a year ago. Assembly service and other revenue was $1.4 million, as compared to $1.2 million last quarter and $0.6 million for the same quarter last year. License and engineering service revenue was $5.1 million for the quarter versus $5.1 million in the prior quarter and $6.3 million for the same quarter a year ago.

Non-GAAP gross margin was 26.4%, compared to 25.2% last quarter and 28.5% a year ago. The quarter-over-quarter increase was mainly driven by the improved factory utilization.



Non-GAAP operating expenses were $39.3 million, compared to $38.9 million for the prior quarter and $39.1 million last year. The slight quarter-over-quarter increase was primarily due to higher professional fees.

Non-GAAP quarterly EPS was $0.09, compared to $0.04 loss per share last quarter and $0.19 earnings per share a year ago.

Moving on to cash flow. Operating cash flow was $7.1 million, including $4.5 million of repayment of customer deposits. By comparison, operating cash flow was $28.2 million in the prior quarter and negative $28.2 million last year. We expect to refund about $8.4 million customer deposits in the September quarter. EBITDAS for the quarter was $16.0 million, compared to $11.6 million last quarter and $17.7 million for the same quarter a year ago.

Now let me turn to our balance sheet.

We completed the June quarter with a cash balance of $175.1 million, compared to $174.4 million at the end of last quarter.

Net trade receivables decreased by $0.7 million sequentially. Days Sales Outstanding were 12 days for the quarter, compared to 15 days for the prior quarter.

Net inventory decreased by $2.3 million quarter-over-quarter. Average days in inventory were 148 days, compared to 153 days in the last quarter.

CapEx for the quarter was $7.2 million, compared to $7.4 million for the prior quarter. We expect CapEx for the September quarter to range from $6 million to $8 million.

Now, I would like to discuss September quarter guidance.

We expect:

•Revenue to be approximately $180 million, plus or minus $10 million.
•GAAP gross margin to be 25%, plus or minus 1%. We anticipate non-GAAP gross margin to be 26.4%, plus or minus 1%.
•GAAP operating expenses to be in the range of $47 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $40 million, plus or minus $1 million.
•Interest expense to be approximately equal to interest income, and
•Income tax expense to be in the range of $0.9 million to $1.1 million.

With that, we will now open the call for questions. Operator, please start the Q&A session.

Closing:


Before we conclude, I’d like to briefly mention four upcoming events. The management team will be participating in and will be available for one-on-one meetings at the 5th Annual Needham Semiconductor and Semicap Conference on August 21st virtually, 2024 Evercore ISI Semiconductor, IT Hardware & Networking Conference on August 27th in Chicago, Jefferies Semiconductor, IT Hardware & Communication Tech. Summit on August 28th in Chicago, and 2024 Benchmark Tech, Media & Telecom Conference on September 4th in New York. If you wish to request a meeting, please contact the institutional sales representative at each sponsoring bank. This concludes our earnings call today. Thank you for your interest in AOS and we look forward to talking to you again next quarter.



Special Notes Regarding Forward Looking Statements

This script 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, statements relating to projected amount of revenues, gross margin, operating expenses, operating income, tax expenses, net income, noncontrolling interest and share-based compensation expenses, expected financial performance of market segments; the macroeconomic conditions and our expectation of recovery of current downturn and inventory correction cycles; our ability to mitigate risks relating to industry-wide downturn; the expected timeline of economic recovery in 2024, our ability and strategy to develop new products; fluctuation in customer demand and market segments; our share of Tier 1 customer; the execution of our business plan and strategies; and other information regarding the future development of our business. 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; decline of the PC industry and our ability to respond to such decline; difficulties and challenges in executing our diversification strategy into different market segments; ordering pattern and seasonality; our ability to introduce or develop new and enhanced products that achieve market acceptance; 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 and other periodic reports filed by AOS. 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.


v3.24.2.u1
Cover Cover
Aug. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 07, 2024
Entity Registrant Name Alpha and Omega Semiconductor Limited
Entity Incorporation, State or Country Code D0
Entity File Number 001-34717
Entity Tax Identification Number 77-0553536
Entity Address, Address Line One Clarendon House
Entity Address, Address Line Two 2 Church Street
Entity Address, City or Town Hamilton
Entity Address, Postal Zip Code HM 11
Entity Address, Country BM
City Area Code 408
Local Phone Number 830-9742
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Shares
Trading Symbol AOSL
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001387467
Amendment Flag false
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