[ Back ]   [ More News ]   [ Home ]
Alpha and Omega Semiconductor Reports Financial Results for Fiscal Fourth Quarter and Fiscal Year Ended June 30, 2024

SUNNYVALE, Calif. — (BUSINESS WIRE) — August 6, 2024 — 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, 2024

 

March 31, 2024

 

June 30, 2023

Revenue

 

$

161.3

 

 

$

150.1

 

 

$

161.5

 

Gross Margin

 

 

25.7

%

 

 

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, 2024

 

March 31, 2024

 

June 30, 2023

Revenue

 

$

161.3

 

 

$

150.1

 

 

$

161.5

 

Non-GAAP Gross Margin

 

 

26.4

%

 

 

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,

 

 

2024

 

2023

Revenue

$

657.3

 

$

691.3

 

Gross Margin

 

26.2

%

 

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,

 

 

2024

 

2023

Revenue

$

657.3

 

$

691.3

 

Non-GAAP Gross Margin

 

27.2

%

 

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

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.

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.

Alpha and Omega Semiconductor Limited

Condensed Consolidated Statements of Operations

(in thousands, except percentages and per share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Fiscal Year Ended

 

 

June 30,
2024

 

March 31,
2024

 

June 30,
2023

 

June 30,
2024

 

June 30,
2023

 

 

 

 

 

 

Revenue

$

161,296

 

$

150,060

 

$

161,525

 

$

657,274

 

$

691,321

 

Cost of goods sold

 

119,859

 

 

114,505

 

 

116,944

 

 

485,356

 

 

491,785

 

Gross profit

 

41,437

 

 

35,555

 

 

44,581

 

 

171,918

 

 

199,536

 

Gross margin

 

25.7

%

 

23.7

%

 

27.6

%

 

26.2

%

 

28.9

%

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Research and development

 

21,813

 

 

23,095

 

 

22,711

 

 

89,940

 

 

88,146

 

Selling, general and administrative

 

21,123

 

 

22,964

 

 

19,258

 

 

85,734

 

 

88,861

 

Total operating expenses

 

42,936

 

 

46,059

 

 

41,969

 

 

175,674

 

 

177,007

 

Operating income (loss)

 

(1,499

)

 

(10,504

)

 

2,612

 

 

(3,756

)

 

22,529

 

 

 

 

 

 

 

Other income (loss), net

 

65

 

 

308

 

 

(298

)

 

(73

)

 

(1,730

)

Interest income (expense), net

 

412

 

 

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:

 

 

 

 

 

Basic

 

28,879

 

 

28,433

 

 

27,598

 

 

28,236

 

 

27,522

 

Diluted

 

28,879

 

 

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, 2024

June 30, 2023

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$

175,127

 

$

195,188

 

Restricted cash

 

413

 

 

415

 

Accounts receivable, net

 

12,546

 

 

22,420

 

Inventories

 

195,750

 

 

183,247

 

Other current assets

 

10,506

 

 

22,666

 

Total current assets

 

394,342

 

 

423,936

 

Property, plant and equipment, net

 

336,619

 

 

357,831

 

Operating lease right-of-use assets, net

 

25,050

 

 

24,349

 

Intangible assets, net

 

3,516

 

 

6,765

 

Equity method investment

 

356,039

 

 

366,617

 

Deferred income tax assets

 

549

 

 

536

 

Other long-term assets

 

28,898

 

 

19,703

 

Total assets

$

1,145,013

 

$

1,199,737

 

LIABILITIES AND EQUITY

 

 

Current liabilities:

 

 

Accounts payable

$

45,084

 

$

50,775

 

Accrued liabilities

 

72,371

 

 

79,533

 

Payable related to equity investee, net

 

13,682

 

 

11,950

 

Income taxes payable

 

2,798

 

 

5,546

 

Short-term debt

 

11,635

 

 

11,434

 

Deferred revenue

 

2,591

 

 

8,073

 

Finance lease liabilities

 

935

 

 

867

 

Operating lease liabilities

 

5,137

 

 

4,383

 

Total current liabilities

 

154,233

 

 

172,561

 

Long-term debt

 

26,724

 

 

38,360

 

Income taxes payable - long-term

 

3,591

 

 

2,817

 

Deferred income tax liabilities

 

26,416

 

 

27,283

 

Finance lease liabilities - long-term

 

2,282

 

 

3,216

 

Operating lease liabilities - long-term

 

20,499

 

 

20,544

 

Other long-term liabilities

 

19,661

 

 

51,037

 

Total liabilities

 

253,406

 

 

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, 2023

 

72

 

 

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 capital

 

353,109

 

 

329,034

 

Accumulated other comprehensive loss

 

(13,419

)

 

(8,111

)

Retained earnings

 

631,058

 

 

642,291

 

Total equity

 

891,607

 

 

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,

 

 

2024

 

2023

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 year

 

195,603

 

 

 

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 compensation

 

294

 

 

 

1,424

 

 

 

592

 

 

 

3,434

 

 

 

5,851

 

Amortization of purchased intangible

 

812

 

 

 

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 revenue

 

26.4

%

 

 

25.2

%

 

 

28.5

%

 

 

27.2

%

 

 

30.2

%

 

 

 

 

 

 

 

 

 

 

GAAP operating expense

$

42,936

 

 

$

46,059

 

 

$

41,969

 

 

$

175,674

 

 

$

177,007

 

Share-based compensation

 

3,273

 

 

 

7,041

 

 

 

2,777

 

 

 

18,207

 

 

 

31,637

 

Legal costs related to government investigation

 

352

 

 

 

103

 

 

 

99

 

 

 

524

 

 

 

656

 

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 compensation

 

3,567

 

 

 

8,465

 

 

 

3,369

 

 

 

21,641

 

 

 

37,488

 

Amortization of purchased intangible

 

812

 

 

 

812

 

 

 

812

 

 

 

3,247

 

 

 

3,247

 

Legal costs related to government investigation

 

352

 

 

 

103

 

 

 

99

 

 

 

524

 

 

 

656

 

Non-GAAP operating income (loss)

$

3,232

 

 

$

(1,124

)

 

$

6,892

 

 

$

21,656

 

 

$

63,920

 

Non-GAAP operating margin as a % of revenue

 

2.0

%

 

 

(0.7

)%

 

 

4.3

%

 

 

3.3

%

 

 

9.2

%

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

$

(2,732

)

 

$

(11,212

)

 

$

(1,104

)

 

$

(11,081

)

 

$

12,364

 

Share-based compensation

 

3,567

 

 

 

8,465

 

 

 

3,369

 

 

 

21,641

 

 

 

37,488

 

Amortization of purchased intangible

 

812

 

 

 

812

 

 

 

812

 

 

 

3,247

 

 

 

3,247

 

Equity method investment loss from equity investee

 

704

 

 

 

676

 

 

 

2,944

 

 

 

4,789

 

 

 

1,411

 

Legal costs related to government investigation

 

352

 

 

 

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 revenue

 

1.6

%

 

 

(0.8

)%

 

 

3.5

%

 

 

2.8

%

 

 

8.0

%

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

$

(2,732

)

 

$

(11,212

)

 

$

(1,104

)

 

$

(11,081

)

 

$

12,364

 

Share-based compensation

 

3,567

 

 

 

8,465

 

 

 

3,369

 

 

 

21,641

 

 

 

37,488

 

Amortization and depreciation

 

13,908

 

 

 

13,325

 

 

 

12,045

 

 

 

53,757

 

 

 

43,207

 

Equity method investment loss from equity investee

 

704

 

 

 

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 compensation

 

0.12

 

 

 

0.30

 

 

 

0.11

 

 

 

0.72

 

 

 

1.27

 

Amortization of purchased intangible

 

0.03

 

 

 

0.03

 

 

 

0.03

 

 

 

0.11

 

 

 

0.11

 

Equity method investment loss from equity investee

 

0.02

 

 

 

0.02

 

 

 

0.10

 

 

 

0.16

 

 

 

0.05

 

Legal costs related to government investigation

 

0.01

 

 

 

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 share

 

28,879

 

 

 

28,433

 

 

 

27,598

 

 

 

28,236

 

 

 

29,528

 

Weighed average number of common shares used to compute Non-GAAP diluted net income (loss) per share

 

30,463

 

 

 

28,433

 

 

 

29,382

 

 

 

30,052

 

 

 

29,528

 

 



Contact:

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