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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): November 4, 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 November 4, 2024, Alpha and Omega Semiconductor Limited (the “Company”) issued a press release regarding its financial results for the fiscal first quarter of 2025 ended September 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: November 4, 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 the Fiscal First Quarter of 2025 Ended September 30, 2024

SUNNYVALE, California, November 4, 2024 - Alpha and Omega Semiconductor Limited (“AOS”) (NASDAQ: AOSL) today reported financial results for the fiscal first quarter of 2025 ended September 30, 2024.

The results for the fiscal first quarter of 2025 ended September 30, 2024 were as follows:

GAAP Financial Comparison
Quarterly
(in millions, except percentage and per share data)
(unaudited)
Three Months Ended
September 30,
2024		June 30,
2024		September 30,
2023
Revenue$181.9 $161.3 $180.6 
Gross Margin24.5 %25.7 %28.2 %
Operating Income (Loss)$(0.3)$(1.5)$9.4 
Net Income (Loss)$(2.5)$(2.7)$5.8 
Net Income (Loss) Per Share - Diluted$(0.09)$(0.09)$0.19 

Non-GAAP Financial Comparison
Quarterly
(in millions, except percentage and per share data)
(unaudited)
Three Months Ended
September 30, 2024June 30, 2024September 30, 2023
Revenue$181.9 $161.3 $180.6 
Non-GAAP Gross Margin25.5 %26.4 %28.8 %
Non-GAAP Operating Income $7.8 $3.2 $11.2 
Non-GAAP Net Income $6.4 $2.6 $9.9 
Non-GAAP Net Income Per Share - Diluted$0.21 $0.09 $0.33 


The non-GAAP financial measures in the schedule above and under the section “Financial Results for Fiscal Q1 Ended September 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.


Financial Results for Fiscal Q1 Ended September 30, 2024
•Revenue was $181.9 million, an increase of 12.8% from the prior quarter and an increase of 0.7% from the same quarter last year.
•GAAP gross margin was 24.5%, down from 25.7% in the prior quarter and down from 28.2% in the same quarter last year.
•Non-GAAP gross margin was 25.5%, down from 26.4% in the prior quarter and down from 28.8% in the same quarter last year.
•GAAP operating expenses were $44.8 million, up from $42.9 million in the prior quarter and up from $41.5 million in the same quarter last year.
•Non-GAAP operating expenses were $38.5 million, down from $39.3 million from last quarter and down from $40.8 million in the same quarter last year.
•GAAP operating loss was $0.3 million, down $1.5 million of operating loss in the prior quarter and down from $9.4 million of operating income in the same quarter last year.
•Non-GAAP operating income was $7.8 million as compared to $3.2 million of operating income for the prior quarter and $11.2 million of operating income for the same quarter last year.
•GAAP net loss per diluted share was $0.09, compared to $0.09 net loss per share for the prior quarter, and $0.19 net income per share for the same quarter a year ago.
•Non-GAAP net income per share was $0.21, compared to $0.09 net income per share for the prior quarter and 0.33 net income per share for the same quarter a year ago.
•Consolidated cash flow provided by operating activities was $11.0 million, as compared to $7.1 million of cash flow provided by operating activities in the prior quarter.
•The Company closed the quarter with $176.0 million of cash and cash equivalents.

AOS Chief Executive Officer Stephen Chang commented, “Our fiscal Q1 results were in-line with our revenue and EPS guidance driven by sequential growth in each of our major segments. We saw seasonal strength from smartphones, computing, tablets, gaming, and wearables."

Mr. Chang concluded, “Looking into the rest of calendar year 2024, we anticipate a typical seasonal decline in notebooks and smartphones that will lead to a sequential decrease in December quarter revenue. However, we expect slight sequential growth in our Computing and Industrial segments—driven by strength in desktops, graphics cards, and quick chargers—to help partially offset this decline. Looking into next year, although visibility is limited, our strategic transition from a component supplier to a total solutions provider with a diverse product portfolio and premier customer base positions us well to outperform the broader markets we serve."

Business Outlook for Fiscal Q2 Ending December 31, 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 second quarter of year 2025 are as follows:

•Revenue to be approximately $170 million, plus or minus $10 million.
•GAAP gross margin to be 24%, plus or minus 1%. We anticipate non-GAAP gross margin to be 25%, plus or minus 1%.
•GAAP operating expenses to be in the range of $45 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $38.8 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 $1 million to $1.2 million.

Conference Call and Webcast

AOS plans to hold an investor teleconference and live webcast to discuss the financial results for the fiscal first quarter ended September 30, 2024 today, November 4, 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 649755. 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 and growth in calendar year 2024, our ability to outperform market, seasonality of our business, our ability to pursue new opportunities, 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 Q2 Ending December 31, 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 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 professional fees 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 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
 September 30,
2024		June 30,
2024		September 30,
2023
Revenue$181,887 $161,296 $180,633 
Cost of goods sold137,361 119,859 129,708 
Gross profit44,526 41,437 50,925 
     Gross margin24.5 %25.7 %28.2 %
Operating expenses:
Research and development22,478 21,813 22,113 
Selling, general and administrative22,300 21,123 19,431 
Total operating expenses44,778 42,936 41,544 
Operating income (loss)(252)(1,499)9,381 
Other income (loss), net(650)65 26 
Interest income, net453 412 229 
Net income (loss) before income taxes(449)(1,022)9,636 
Income tax expense 1,040 1,006 1,138 
Net income (loss) before loss from equity method investment(1,489)(2,028)8,498 
Equity method investment loss from equity investee(1,007)(704)(2,712)
Net income (loss) $(2,496)$(2,732)$5,786 
Net income (loss) per common share
Basic$(0.09)$(0.09)$0.21 
Diluted$(0.09)$(0.09)$0.19 
Weighted average number of common shares used to compute net income (loss) per share
Basic29,004 28,879 27,693 
Diluted29,004 28,879 29,786 



Alpha and Omega Semiconductor Limited
Condensed Consolidated Balance Sheets
(in thousands, except par value per share)
(unaudited)
 September 30, 2024June 30, 2024
ASSETS
Current assets:
Cash and cash equivalents$176,008 $175,127 
Restricted cash214 413 
Accounts receivable, net24,591 12,546 
Inventories184,968 195,750 
Contract assets3,050 — 
Other current assets13,906 14,165 
Total current assets402,737 398,001 
Property, plant and equipment, net327,612 336,619 
Operating lease right-of-use assets24,758 25,050 
Intangible assets, net2,704 3,516 
Equity method investment 354,348 356,039 
Deferred income tax assets 554 549 
Other long-term assets24,912 25,239 
Total assets$1,137,625 $1,145,013 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable$41,848 $45,084 
Accrued liabilities71,437 72,371 
Payable related to equity investee, net
17,194 13,682 
Income taxes payable3,370 2,798 
Short-term debt11,688 11,635 
Deferred revenue— 2,591 
Finance lease liabilities952 935 
Operating lease liabilities5,248 5,137 
Total current liabilities151,737 154,233 
Long-term debt23,782 26,724 
Income taxes payable - long-term3,661 3,591 
Deferred income tax liabilities26,200 26,416 
Finance lease liabilities - long-term2,037 2,282 
Operating lease liabilities - long-term20,275 20,499 
Other long-term liabilities14,661 19,661 
Total liabilities242,353 253,406 
Shareholders' Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at September 30, 2024 and June 30, 2024— — 
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding:36,162 shares and 29,024 shares, respectively at September 30, 2024 and 36,107 shares and 28,969 shares, respectively at June 30, 2024
72 72 
Treasury shares at cost: 7,138 shares at September 30, 2024 and 7,138 shares at June 30, 2024(79,213)(79,213)
Additional paid-in capital359,429 353,109 
Accumulated other comprehensive loss(13,578)(13,419)
Retained earnings628,562 631,058 


Total shareholders' equity895,272 891,607 
Total liabilities and shareholders' equity$1,137,625 $1,145,013 







Alpha and Omega Semiconductor Limited
Selected Cash Flow Information
( in thousands, unaudited)
Three Months Ended September 30,
20242023
Net cash provided by operating activities$11,021 $13,823 
Net cash used in investing activities(6,738)(12,510)
Net cash used in financing activities(3,706)(2,999)
Effect of exchange rate changes on cash, cash equivalents and restricted cash105 (135)
Net increase (decrease) in cash, cash equivalents and restricted cash682 (1,821)
Cash, cash equivalents and restricted cash at beginning of period175,540 195,603 
Cash, cash equivalents and restricted cash at end of period$176,222 $193,782 


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
September 30,
2024		June 30,
2024		September 30,
2023
GAAP gross profit$44,526 $41,437 $50,925 
   Share-based compensation1,015 294 212 
   Amortization of purchased intangible812 812 812 
Non-GAAP gross profit$46,353 $42,543 $51,949 
Non-GAAP gross margin as a % of revenue25.5 %26.4 %28.8 %
GAAP operating expense$44,778 $42,936 $41,544 
   Share-based compensation 5,887 3,273 706 
Legal costs related to government investigation347 352 52 
Non-GAAP operating expense$38,544 $39,311 $40,786 
GAAP operating income (loss)$(252)$(1,499)$9,381 
   Share-based compensation 6,902 3,567 918 
   Amortization of purchased intangible812 812 812 
Legal costs related to government investigation347 352 52 
Non-GAAP operating income
$7,809 $3,232 $11,163 
Non-GAAP operating margin as a % of revenue4.3 %2.0 %6.2 %
GAAP net income (loss) $(2,496)$(2,732)$5,786 
   Share-based compensation 6,902 3,567 918 
   Amortization of purchased intangible812 812 812 
Equity method investment loss from equity investee
1,007 704 2,712 
Legal costs related to government investigation347 352 52 
   Income tax effect of non-GAAP adjustments(151)(78)(406)
Non-GAAP net income
$6,421 $2,625 $9,874 
Non-GAAP net margin as a % of revenue3.5 %1.6 %5.5 %
GAAP net income (loss) $(2,496)$(2,732)$5,786 
   Share-based compensation 6,902 3,567 918 
   Amortization and depreciation14,562 13,908 12,951 
Equity method investment loss from equity investee
1,007 704 2,712 
   Interest income, net
(453)(412)(229)
   Income tax expense 1,040 1,006 1,138 
EBITDAS$20,562 $16,041 $23,276 
GAAP diluted net income (loss) per share $(0.08)$(0.09)$0.19 
 Share-based compensation 0.22 0.12 0.03 
 Amortization of purchased intangible0.03 0.03 0.03 
Equity method investment loss from equity investee
0.03 0.02 0.09 
Legal costs related to government investigation0.01 0.01 0.00 
 Income tax effect of non-GAAP adjustments(0.00)(0.00)(0.01)
Non-GAAP diluted net income per share
$0.21 $0.09 $0.33 


Weighted average number of common shares used to compute GAAP diluted net income (loss) per share
29,004 28,879 29,786 
Weighted average number of common shares used to compute Non-GAAP diluted net income per share
31,169 30,463 29,786 




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

The Blueshirt Group
Steven Pelayo
+1 (360) 808-5154
steven@blueshirtgroup.co



Exhibit 99.2


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

November 4, 2024

Steven Pelayo

Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor’s conference call to discuss fiscal 2025 first quarter 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 December quarter. Finally, we will have the Q&A session.

The earnings release was distributed over wire today, November 4, 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, Steven. Welcome to Alpha and Omega’s fiscal Q1 earnings call. I will begin with a high-level overview of our results and then jump into segment details.

We delivered fiscal Q1 revenue and EPS results in-line with our guidance. Revenue was $181.9 million, non-GAAP gross margin was 25.5%. Non-GAAP EPS was $0.21.

We saw broad-based demand due to seasonality in the September quarter with sequential growth in each of our major segments. Relative strength came from PC desktops, notebooks and servers in our Computing segment; gaming and wearables within Consumer; strong growth from a Tier 1 US


smartphone customer within Communications; and AC-DC power supplies and quick chargers in the Power Supply and Industrial segment.

We have delivered on our commitments and continue to make unwavering strides to transform from a component supplier to a total solutions provider, leveraging strengths in high-performance silicon, packaging, and intelligent ICs. We aim to capture market share and increase BOM content with a broader 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. In smartphones, trends like foldable screens, AI integration, and faster charging offer growth opportunities. In addition to Computing and Communication, we see long term potential in solar, e-mobility, gaming, and home appliances, all driven by the global push for efficient, 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. September quarter revenue was up 8.6% year-over-year and 6.6% sequentially and represented 42.0% of total revenue. These results were slightly better than our original expectation for mid-single digit growth. As mentioned before, we saw relative strength from PC desktops, notebooks, and servers, which was offset by softer graphics and A.I.-accelerator cards due to a pause before the next platform transition.

We are increasingly confident in our position in advanced computing. Our backlog for both graphics cards and A.I. accelerator cards is now growing due to the new platform transition. At this stage, we are working closely with add-in card makers in Asia as they bring up their boards and prepare for mass production. With the new platform, we expect BOM content to increase as more power stage ICs, paired with our controller, are being used to power the GPU.

These design wins highlight the strength of our customer relationships and our total solutions approach as we supply both the controller and power stages. Additionally, we are collaborating with customers on larger data center opportunities slated for 2025. We anticipate having more to talk about with these developments during our next earnings report.

Looking forward into the December quarter, the PC market is expected to decline with seasonality, but we expect the Computing segment to slightly grow sequentially with share gains in desktops, as well as strength in graphics cards and servers, offset by notebook and tablet market seasonality.

Turning to the Consumer segment, September quarter revenue was up 2.0% year-over-year and 12.4% sequentially and represented 17.4% of total revenue. The results were in-line with our forecast for low double digit sequential growth and were primarily driven by gaming, wearables, and TVs, offset by a decline in home appliances. This was the second quarter of sequential growth in gaming, so we are confident the inventory correction is now behind us. However, we don’t expect meaningful growth until the customer transitions to the next platform. Wearables were a notable standout in the quarter reaching record levels on market share gains and new versions of smartwatches and headphones.

For the December quarter, we forecast close to a 30% sequential decline in the consumer segment driven by seasonal decline in gaming and TVs, post new product launch impacts in wearables, and continued softness in home appliances.

Next, let’s discuss the Communications segment, revenue in the September quarter was up 14.2% year-over-year and 29.4% sequentially, and represented 19.5% of total revenue. These results were above our double-digit sequential growth expectations as our Tier 1 U.S. smartphone customer prepared for its product launch. In some of their high-end models we are seeing an increase in BOM content as they are moving toward a higher charging current. We also saw strong sequential growth from China OEMs offset by sequential declines from Korea. As mentioned last quarter, we are benefiting from a mix shift to more premium phones.



Looking ahead, we anticipate a low double-digit sequential decline in the December quarter due to seasonality and overall limited visibility on smartphone sell through heading into next year.

Now, let’s talk about our last segment, Power Supply and Industrial, which accounted for 17.5% of total revenue and was down 23.7% year-over-year, but up 15.6% sequentially. The results were at the low-end of our forecast for 15-20% sequential growth, but were still driven by seasonal strength in AC-DC power supplies and quick chargers.

Within Industrial, solar remains soft, while the recovery in quick chargers has now started. We see additional opportunities in 2025 for quick chargers due to increased BOM content driven by higher charging currents. We also are leveraging relationships in Taiwan to partner on DC fans for server racks.

For the December quarter, we expect the Power Supply and Industrial segment to grow low single digits sequentially primarily driven by e-mobility and continued growth from quick chargers. This growth will be partially offset by a seasonal decline in AC-DC power supplies.

In closing, the September quarter was in-line with our expectations. The broad-based growth confirms the inventory corrections we experienced over the past year are complete. Seasonality has returned and new markets like A.I. and advanced computing are emerging. We expect a typical seasonal decline in the December quarter primarily driven by notebook, tablets, gaming, wearables and TV, but partially offset by desktops, graphics cards, servers, e-mobility and quick chargers.

At this point, our visibility into 2025 is limited and the calendar first quarter of 2025 is typically seasonally soft as well. However, we are optimistic and 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. We are steadfast in executing our technology roadmap.

We are excited about our transition from a component supplier to a total solutions provider. These strategic efforts over the past few years are starting to bear fruit as evidenced by our success in designing in both controllers, as well as power stages, into PCs, graphics cards, and now expanding into A.I. applications. This transition will only accelerate going forward as we tap into new opportunities and increase our share of BOM content.

In summary, power management underpins key trends such as A.I., digitalization, connectivity, and electrification – especially as we move towards a sustainable, low-carbon society. We see many future opportunities in advanced computing and data centers, increasing integration of A.I. in PCs and smartphones, and higher smartphone charging currents with multiple batteries and screens. 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.

With that, I will now turn the call over to Yifan for a discussion of our fiscal first quarter 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 $181.9 million, up 12.8% sequentially and 0.7% year-over-year.

In terms of product mix, DMOS revenue was $122.5 million, up 20.0% sequentially and 0.8% over last year. Power IC revenue was $52.9 million, up 0.4% from the prior quarter and from a year ago. Assembly service and other revenue was $0.9 million, as compared to $1.4 million last quarter and $0.7 million for the same quarter last year. License and engineering service revenue was $5.6 million for the quarter versus $5.1 million in the prior quarter and $5.6 million for the same quarter a year ago.



Non-GAAP gross margin was 25.5%, compared to 26.4% last quarter and 28.8% a year ago. The quarter-over-quarter decrease was mainly impacted by ASP erosion and mix changes.

Non-GAAP operating expenses were $38.5 million, compared to $39.3 million for the prior quarter and $40.8 million last year. The slight quarter-over-quarter decrease was primarily due to lower professional fees and fluctuation of engineering expenses.

Non-GAAP quarterly EPS was $0.21, compared to $0.09 per share last quarter and $0.33 per share a year ago.

Moving on to cash flow. Operating cash flow was $11.0 million, including $8.4 million of repayment of customer deposits. By comparison, operating cash flow was $7.1 million in the prior quarter and $13.8 million last year. We expect to refund $5.8 million customer deposits in the December quarter. EBITDAS for the quarter was $20.6 million, compared to $16.0 million last quarter and $23.3 million for the same quarter a year ago.

Now let me turn to our balance sheet.

We completed the September quarter with a cash balance of $176.0 million, compared to $175.1 million at the end of last quarter.

Net trade receivables increased by $12.0 million sequentially. Days Sales Outstanding were 15 days for the quarter, compared to 12 days for the prior quarter.

Net inventory decreased by $10.8 million quarter-over-quarter. Average days in inventory were 125 days, compared to 148 days in the last quarter.

CapEx for the quarter was $6.7 million, compared to $7.2 million for the prior quarter. We expect CapEx for the December quarter to range from $6 million to $8 million.

Now, I would like to discuss December quarter guidance.

We expect:

•Revenue to be approximately $170 million, plus or minus $10 million.
•GAAP gross margin to be 24%, plus or minus 1%. We anticipate non-GAAP gross margin to be 25%, plus or minus 1%.
•GAAP operating expenses to be in the range of $45 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $38.8 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 $1 million to $1.2 million.

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


Closing:

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; our ability to capture market shares and increase BOM content; our ability to mitigate risks relating to industry-wide downturn; business opportunities in A.I. and data centers; 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, 2024 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.



v3.24.3
Cover Cover
Nov. 04, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 04, 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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