About Alpha and Omega Semiconductor
Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer and global supplier of a broad range of power semiconductors, including a wide portfolio of Power MOSFET, IGBT, IPM, TVS, HVIC, GaN/SiC, 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, smart phones, battery packs, consumer and industrial motor controls 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 |
||||||||||
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
||||||
|
|
|
|
|
|
|
||||||
Revenue |
|
$ |
117,802 |
|
|
$ |
111,856 |
|
|
$ |
115,072 |
|
Cost of goods sold |
|
90,870 |
|
|
84,220 |
|
|
82,461 |
|
|||
Gross profit |
|
26,932 |
|
|
27,636 |
|
|
32,611 |
|
|||
Gross margin |
|
22.9 |
% |
|
24.7 |
% |
|
28.3 |
% |
|||
|
|
|
|
|
|
|
||||||
Operating expenses: |
|
|
|
|
|
|
||||||
Research and development |
|
12,368 |
|
|
11,030 |
|
|
11,384 |
|
|||
Selling, general and administrative |
|
15,185 |
|
|
17,564 |
|
|
20,352 |
|
|||
| Total operating expenses |
|
27,553 |
|
|
28,594 |
|
|
31,736 |
|
|||
| Operating income (loss) |
|
(621 |
) |
|
(958 |
) |
|
875 |
|
|||
|
|
|
|
|
|
|
|
||||||
| Other income (loss), net |
|
(998 |
) |
|
83 |
|
|
262 |
|
|||
| Interest income (expenses) |
|
171 |
|
|
(1,990 |
) |
|
(1,490 |
) |
|||
| Loss before income taxes |
|
(1,448 |
) |
|
(2,865 |
) |
|
(353 |
) |
|||
|
|
|
|
|
|
|
|
||||||
| Income tax expense (benefit) |
|
410 |
|
|
(630 |
) |
|
560 |
|
|||
| Net loss including noncontrolling interest |
|
(1,858 |
) |
|
(2,235 |
) |
|
(913 |
) |
|||
| Net loss attributable to noncontrolling interest |
|
(2,867 |
) |
|
(4,780 |
) |
|
(3,329 |
) |
|||
| Net income attributable to Alpha and Omega Semiconductor Limited |
|
$ |
1,009 |
|
|
$ |
2,545 |
|
|
$ |
2,416 |
|
|
|
|
|
|
|
|
|
||||||
| Net income per common share attributable to Alpha and Omega Semiconductor Limited |
|
|
|
|
|
|
||||||
| Basic |
|
$ |
0.04 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
| Diluted |
|
$ |
0.04 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
||||||
| Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net income per share |
|
|
|
|
|
|
||||||
| Basic |
|
24,538 |
|
|
24,438 |
|
|
23,844 |
|
|||
| Diluted |
|
25,130 |
|
|
24,996 |
|
|
24,594 |
|
|||
| Alpha and Omega Semiconductor Limited |
||||||||
| Condensed Consolidated Balance Sheets |
||||||||
| (in thousands, except par value per share) |
||||||||
| (unaudited) |
||||||||
|
|
September 30, 2019 |
|
June 30, 2019 |
|||||
| ASSETS |
|
|
|
|||||
| Current assets: |
|
|
|
|||||
| Cash and cash equivalents |
$ |
103,136 |
|
|
$ |
121,893 |
|
|
| Restricted cash |
281 |
|
|
364 |
|
|||
| Accounts receivable, net |
39,329 |
|
|
24,296 |
|
|||
| Inventories |
118,558 |
|
|
111,643 |
|
|||
| Other current assets |
33,092 |
|
|
37,102 |
|
|||
| Total current assets |
294,396 |
|
|
295,298 |
|
|||
| Property, plant and equipment, net |
400,278 |
|
|
409,737 |
|
|||
| Operating lease right-of-use assets, net |
19,362 |
|
|
— |
|
|||
| Intangible assets, net |
16,854 |
|
|
16,882 |
|
|||
| Deferred income tax assets |
4,813 |
|
|
4,822 |
|
|||
| Restricted cash - long-term |
1,966 |
|
|
2,038 |
|
|||
| Other long-term assets |
10,149 |
|
|
10,617 |
|
|||
| Total assets |
$ |
747,818 |
|
|
$ |
739,394 |
|
|
| LIABILITIES AND EQUITY |
|
|
|
|||||
| Current liabilities: |
|
|
|
|||||
| Accounts payable |
$ |
90,811 |
|
|
$ |
94,384 |
|
|
| Accrued liabilities |
49,397 |
|
|
44,075 |
|
|||
| Income taxes payable |
1,574 |
|
|
1,541 |
|
|||
| Short-term debt |
28,751 |
|
|
26,609 |
|
|||
| Finance lease liabilities |
13,057 |
|
|
11,355 |
|
|||
| Operating lease liabilities |
3,767 |
|
|
— |
|
|||
| Total current liabilities |
187,357 |
|
|
177,964 |
|
|||
| Long-term debt |
56,357 |
|
|
59,380 |
|
|||
| Income taxes payable - long-term |
1,006 |
|
|
993 |
|
|||
| Deferred income tax liabilities |
425 |
|
|
466 |
|
|||
| Finance lease liabilities - long-term |
38,047 |
|
|
43,381 |
|
|||
| Operating lease liabilities - long-term |
15,815 |
|
|
— |
|
|||
| Other long-term liabilities |
11,258 |
|
|
13,921 |
|
|||
| Total liabilities |
310,265 |
|
|
296,105 |
|
|||
| Equity: |
|
|
|
|||||
| Preferred shares, par value $0.002 per share: |
|
|
|
|||||
| Authorized: 10,000 shares; Issued and outstanding: none at September 30, 2019 and June 30, 2019 |
— |
|
|
— |
|
|||
| Common shares, par value $0.002 per share: |
|
|
|
|||||
| Authorized: 100,000 shares; Issued and outstanding: 31,194 shares and 24,550 shares, respectively at September 30, 2019 and 31,163 shares and 24,517 shares, respectively at June 30, 2019 |
62 |
|
|
62 |
|
|||
| Treasury shares at cost, 6,644 shares at September 30, 2019 and 6,646 shares at June 30, 2019 |
(66,227 |
) |
|
(66,240 |
) |
|||
| Additional paid-in capital |
236,683 |
|
|
234,410 |
|
|||
| Accumulated other comprehensive loss |
(5,876 |
) |
|
(2,693 |
) |
|||
| Retained earnings |
126,481 |
|
|
125,485 |
|
|||
| Total Alpha and Omega Semiconductor Limited shareholder's equity |
291,123 |
|
|
291,024 |
|
|||
| Noncontrolling interest |
146,430 |
|
|
152,265 |
|
|||
| Total equity |
437,553 |
|
|
443,289 |
|
|||
| Total liabilities and equity |
$ |
747,818 |
|
|
$ |
739,394 |
|
|
| Supplemental disclosures of financial information: |
||||||||||||||||||||||||
| (in thousands) |
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
|
As of September 30, 2019 |
|
As of June 30, 2019 |
|||||||||||||||||||||
|
|
AOS |
|
CQJV |
|
Consolidated |
|
AOS |
|
CQJV |
|
Consolidated |
|||||||||||||
| Cash and cash equivalents |
$ |
88,086 |
|
|
$ |
15,050 |
|
|
$ |
103,136 |
|
|
$ |
100,733 |
|
|
$ |
21,160 |
|
|
$ |
121,893 |
|
|
| Bank borrowings liabilities |
$ |
40,963 |
|
|
$ |
95,416 |
|
* |
$ |
136,379 |
|
|
$ |
41,048 |
|
|
$ |
99,865 |
|
* |
$ |
140,913 |
|
|
| Inventory |
$ |
92,469 |
|
|
$ |
26,089 |
|
|
$ |
118,558 |
|
|
$ |
93,852 |
|
|
$ |
17,791 |
|
|
$ |
111,643 |
|
|
| Property, plant and equipment, net |
$ |
149,915 |
|
|
$ |
250,363 |
|
|
$ |
400,278 |
|
|
$ |
148,497 |
|
|
$ |
261,240 |
|
|
$ |
409,737 |
|
|
| Total assets |
$ |
374,862 |
|
|
$ |
372,956 |
|
|
$ |
747,818 |
|
|
$ |
375,004 |
|
|
$ |
364,390 |
|
|
$ |
739,394 |
|
|
| Total equity |
$ |
331,176 |
|
|
$ |
106,377 |
|
|
$ |
437,553 |
|
|
$ |
325,240 |
|
|
$ |
118,049 |
|
|
$ |
443,289 |
|
|
| * AOS is not a guarantor of CQJV's (Chongqing Joint Venture) debts. |
||||||||||||||||||||||||
|
|
Three Months Ended September 30, 2019 |
|
Three Months Ended June 30, 2019 |
|
Three Months Ended September 30, 2018 |
||||||||||||||||||||||||||||||
|
|
AOS |
|
CQJV |
|
Consolidated |
|
AOS |
|
CQJV |
|
Consolidated |
|
AOS |
|
CQJV |
|
Consolidated |
||||||||||||||||||
| Net cash provided by (used in) operating activities |
$ |
(4,225 |
) |
|
$ |
1,569 |
|
|
$ |
(2,656 |
) |
|
$ |
15,195 |
|
|
$ |
(6,930 |
) |
|
$ |
8,265 |
|
|
$ |
18,403 |
|
|
$ |
(416 |
) |
|
$ |
17,987 |
|
| Purchase of property and equipment |
$ |
8,292 |
|
|
$ |
6,077 |
|
|
$ |
14,369 |
|
|
$ |
4,600 |
|
|
$ |
17,540 |
|
|
$ |
22,140 |
|
|
$ |
15,216 |
|
|
$ |
34,272 |
|
|
$ |
49,488 |
|
| EBITDAS |
$ |
13,813 |
|
|
$ |
(2,421 |
) |
** |
$ |
14,259 |
|
|
$ |
15,076 |
|
|
$ |
(5,625 |
) |
** |
$ |
14,231 |
|
|
$ |
16,740 |
|
|
$ |
(4,670 |
) |
** |
$ |
15,399 |
|
| ** CQJV EBITDAS includes amounts attributable to noncontrolling interest. |
|||||||||||||||||||||||||||||||||||
| 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,
|
|
June 30,
|
|
September 30,
|
||||||
|
|
|
|
|
|
|
|
||||||
| GAAP gross profit |
|
$ |
26,932 |
|
|
$ |
27,636 |
|
|
$ |
32,611 |
|
| Share-based compensation |
|
436 |
|
|
431 |
|
|
497 |
|
|||
| Production ramp up costs related to joint venture |
|
5,991 |
|
|
2,587 |
|
|
1,117 |
|
|||
| Non-GAAP gross profit |
|
$ |
33,359 |
|
|
$ |
30,654 |
|
|
$ |
34,225 |
|
| Non-GAAP gross margin as a % of revenue |
|
28.3 |
% |
|
27.4 |
% |
|
29.7 |
% |
|||
|
|
|
|
|
|
|
|
||||||
| GAAP operating income (loss) |
|
$ |
(621 |
) |
|
$ |
(958 |
) |
|
$ |
875 |
|
| Share-based compensation |
|
2,369 |
|
|
2,518 |
|
|
3,129 |
|
|||
| Pre-production expenses related to joint venture |
|
— |
|
|
3,902 |
|
|
4,627 |
|
|||
| Production ramp up costs related to joint venture |
|
5,991 |
|
|
2,587 |
|
|
1,117 |
|
|||
| Non-GAAP operating income |
|
$ |
7,739 |
|
|
$ |
8,049 |
|
|
$ |
9,748 |
|
| Non-GAAP operating margin as a % of revenue |
|
6.6 |
% |
|
7.2 |
% |
|
8.5 |
% |
|||
|
|
|
|
|
|
|
|
||||||
| GAAP net income attributable to AOS |
|
$ |
1,009 |
|
|
$ |
2,545 |
|
|
$ |
2,416 |
|
| Share-based compensation |
|
2,369 |
|
|
2,518 |
|
|
3,129 |
|
|||
| Pre-production expenses related to joint venture |
|
49 |
|
|
2,413 |
|
|
2,662 |
|
|||
| Production ramp up costs related to joint venture |
|
3,049 |
|
|
1,317 |
|
|
582 |
|
|||
| Non-GAAP net income attributable to AOS |
|
$ |
6,476 |
|
|
$ |
8,793 |
|
|
$ |
8,789 |
|
| Non-GAAP net margin attributable to AOS as a % of revenue |
|
5.5 |
% |
|
7.9 |
% |
|
7.6 |
% |
|||
|
|
|
|
|
|
|
|
||||||
| GAAP net income attributable to AOS |
|
$ |
1,009 |
|
|
$ |
2,545 |
|
|
$ |
2,416 |
|
| Share-based compensation |
|
2,369 |
|
|
2,518 |
|
|
3,129 |
|
|||
| Amortization and depreciation |
|
10,691 |
|
|
7,879 |
|
|
7,870 |
|
|||
| Interest expense (income), net |
|
(220 |
) |
|
1,919 |
|
|
1,424 |
|
|||
| Income tax expense (benefit) |
|
410 |
|
|
(630 |
) |
|
560 |
|
|||
| EBITDAS |
|
$ |
14,259 |
|
|
$ |
14,231 |
|
|
$ |
15,399 |
|
|
|
|
|
|
|
|
|
||||||
| GAAP diluted net income per share attributable to AOS |
|
$ |
0.04 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
| Share-based compensation |
|
0.10 |
|
|
0.10 |
|
|
0.13 |
|
|||
| Pre-production expenses related to joint venture |
|
— |
|
|
0.10 |
|
|
0.11 |
|
|||
| Production ramp up costs related to joint venture |
|
0.12 |
|
|
0.05 |
|
|
0.02 |
|
|||
| Non-GAAP diluted net income per share attributable to AOS |
|
$ |
0.26 |
|
|
$ |
0.35 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
| Shares used to compute GAAP diluted net income per share |
|
25,130 |
|
|
24,996 |
|
|
24,594 |
|
|||
| Shares used to compute Non-GAAP diluted net income per share |
|
25,130 |
|
|
24,996 |
|
|
24,594 |
|
|||
