Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Third Quarter of 2020 Ended March 31, 2020

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 income (loss), net loss attributable to noncontrolling interest, net income (loss) and diluted earnings per share ("EPS"). These supplemental measures exclude share-based compensation expenses, production ramp up costs and re-production expenses related to the JV Company, as well as legal costs related to government investigation and impairment of privately-held investment. We also disclose certain non-GAAP financial measures in our guidance for the next quarter, including non-GAAP gross margin, operating expenses and loss attributable to noncontrolling interest. These forecast supplemental measures exclude estimated pre-production expenses and production ramp-up costs relating to our JV Company, estimated share-based compensation expenses and legal costs related to investigation case. We believe that these historical and forecast non-GAAP financial measures can 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 the non-GAAP financial measures we use 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 amount of income tax effect of non-GAAP adjustments in the non-GAAP net income 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 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

 

Nine Months Ended

 

March 31,
2020

 

December 31,
2019

 

March 31,
2019

 

March 31,
2020

 

March 31,
2019

 

 

 

 

 

 

 

 

 

 

Revenue

$

106,852

 

 

$

117,860

 

 

$

109,067

 

 

$

342,514

 

 

$

339,064

 

Cost of goods sold

84,393

 

 

93,454

 

 

83,438

 

 

268,717

 

 

251,322

 

Gross profit

22,459

 

 

24,406

 

 

25,629

 

 

73,797

 

 

87,742

 

Gross margin

21.0

%

 

20.7

%

 

23.5

%

 

21.5

%

 

25.9

%

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

13,569

 

 

12,147

 

 

11,417

 

 

38,084

 

 

35,401

 

Selling, general and administrative

16,909

 

 

15,629

 

 

17,947

 

 

47,723

 

 

58,403

 

Impairment of privately-held investment

600

 

 

 

 

 

 

600

 

 

 

Total operating expenses

31,078

 

 

27,776

 

 

29,364

 

 

86,407

 

 

93,804

 

Operating loss

(8,619

)

 

(3,370

)

 

(3,735

)

 

(12,610

)

 

(6,062

)

 

 

 

 

 

 

 

 

 

 

Interest expense and other income (loss), net

(2,282

)

 

(635

)

 

(1,595

)

 

(3,744

)

 

(4,455

)

Loss before income taxes

(10,901

)

 

(4,005

)

 

(5,330

)

 

(16,354

)

 

(10,517

)

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

(1,015

)

 

568

 

 

625

 

 

(37

)

 

1,886

 

Net loss including noncontrolling interest

(9,886

)

 

(4,573

)

 

(5,955

)

 

(16,317

)

 

(12,403

)

Net loss attributable to noncontrolling interest

(3,391

)

 

(3,568

)

 

(4,400

)

 

(9,826

)

 

(11,719

)

Net loss attributable to Alpha and Omega Semiconductor Limited

$

(6,495

)

 

$

(1,005

)

 

$

(1,555

)

 

$

(6,491

)

 

$

(684

)

 

 

 

 

 

 

 

 

 

 

Net loss per common share attributable to Alpha and Omega Semiconductor Limited

 

 

 

 

 

 

 

 

 

Basic

$

(0.26

)

 

$

(0.04

)

 

$

(0.06

)

 

$

(0.26

)

 

$

(0.03

)

Diluted

$

(0.26

)

 

$

(0.04

)

 

$

(0.06

)

 

$

(0.26

)

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net loss per share

 

 

 

 

 

 

 

 

 

Basic

24,894

 

 

24,701

 

 

24,084

 

 

24,711

 

 

23,938

 

Diluted

24,894

 

 

24,701

 

 

24,084

 

 

24,711

 

 

23,938

 

Alpha and Omega Semiconductor Limited

Condensed Consolidated Balance Sheets

(in thousands, except par value per share)

(unaudited)

 

March 31, 2020

 

June 30, 2019

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

110,223

 

 

$

121,893

 

Restricted cash

2,325

 

 

364

 

Accounts receivable, net

17,470

 

 

24,296

 

Inventories

127,395

 

 

111,643

 

Other current assets

34,518

 

 

37,102

 

Total current assets

291,931

 

 

295,298

 

Property, plant and equipment, net

412,318

 

 

409,737

 

Operating lease right-of-use assets, net

32,739

 

 

 

Intangible assets, net

16,798

 

 

16,882

 

Deferred income tax assets

4,755

 

 

4,822

 

Restricted cash - long-term

1,973

 

 

2,038

 

Other long-term assets

6,781

 

 

10,617

 

Total assets

$

767,295

 

 

$

739,394

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

87,973

 

 

$

94,384

 

Accrued liabilities

50,572

 

 

44,075

 

Income taxes payable

419

 

 

1,541

 

Short-term debt

32,812

 

 

26,609

 

Finance lease liabilities

15,219

 

 

11,355

 

Operating lease liabilities

3,839

 

 

 

Total current liabilities

190,834

 

 

177,964

 

Long-term debt

74,205

 

 

59,380

 

Income taxes payable - long-term

859

 

 

993

 

Deferred income tax liabilities

485

 

 

466

 

Finance lease liabilities - long-term

30,579

 

 

43,381

 

Operating lease liabilities - long-term

30,248

 

 

 

Other long-term liabilities

10,356

 

 

13,921

 

Total liabilities

337,566

 

 

296,105

 

Equity:

 

 

 

Preferred shares, par value $0.002 per share:

 

 

 

Authorized: 10,000 shares; issued and outstanding: none at March 31, 2020 and June 30, 2019

 

 

 

Common shares, par value $0.002 per share:

 

 

 

Authorized: 100,000 shares; issued and outstanding: 31,715 shares and 25,076 shares, respectively at March 31, 2020 and 31,163 shares and 24,517 shares, respectively at June 30, 2019

63

 

 

62

 

Treasury shares at cost, 6,639 shares at March 31, 2020 and 6,646 shares at June 30, 2019

(66,184

)

 

(66,240

)

Additional paid-in capital

242,470

 

 

234,410

 

Accumulated other comprehensive loss

(5,408

)

 

(2,693

)

Retained earnings

118,938

 

 

125,485

 

Total Alpha and Omega Semiconductor Limited shareholder's equity

289,879

 

 

291,024

 

Noncontrolling interest

139,850

 

 

152,265

 

Total equity

429,729

 

 

443,289

 

Total liabilities and equity

$

767,295

 

 

$

739,394

 

Supplemental disclosures of financial information:

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2020

 

As of June 30, 2019

 

AOS

 

CQJV

 

Consolidated

 

AOS

 

CQJV

 

Consolidated

Cash and cash equivalents

$

99,523

 

 

$

10,700

 

 

$

110,223

 

 

$

100,733

 

 

$

21,160

 

 

$

121,893

 

Bank borrowings liabilities

$

34,793

 

 

$

118,790

 

*

$

153,583

 

 

$

41,048

 

 

$

99,865

 

*

$

140,913

 

Inventory

$

95,237

 

 

$

32,158

 

 

$

127,395

 

 

$

93,852

 

 

$

17,791

 

 

$

111,643

 

Property, plant and equipment, net

$

159,517

 

 

$

252,801

 

 

$

412,318

 

 

$

148,497

 

 

$

261,240

 

 

$

409,737

 

Total assets

$

378,422

 

 

$

388,873

 

 

$

767,295

 

 

$

375,004

 

 

$

364,390

 

 

$

739,394

 

Total equity

$

336,512

 

 

$

93,217

 

 

$

429,729

 

 

$

325,240

 

 

$

118,049

 

 

$

443,289

 

* AOS is not a guarantor of CQJV's (Chongqing Joint Venture) debts.

 

Three Months Ended March 31, 2020

 

Three Months Ended December 31,
2019

 

Three Months Ended March 31, 2019

 

AOS

 

CQJV

 

Consolidated

 

AOS

 

CQJV

 

Consolidated

 

AOS

 

CQJV

 

Consolidated

Net cash provided by (used in) operating activities

$

29,545

 

 

$

(15,233

)

 

$

14,312

 

 

$

12,470

 

 

$

(3,532

)

 

$

8,938

 

 

$

9,540

 

 

$

(17,465

)

 

$

(7,925

)

Purchase of property and equipment, net of government grant

$

13,063

 

 

$

3,720

 

 

$

16,783

 

 

$

12,062

 

 

$

3,307

 

 

$

15,369

 

 

$

8,184

 

 

$

15,786

 

 

$

23,970

 

EBITDAS

$

6,487

 

 

$

(1,095

)

**

$

8,783

 

 

$

12,538

 

 

$

(2,214

)

**

$

13,892

 

 

$

13,535

 

 

$

(6,093

)

**

$

11,842

 

** 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

 

Nine Months Ended

 

 

March 31,
2020

 

December 31,
2019

 

March 31,
2019

 

March 31,
2020

 

March 31,
2019

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

22,459

 

 

$

24,406

 

 

$

25,629

 

 

$

73,797

 

 

$

87,742

 

Share-based compensation

 

357

 

 

404

 

 

494

 

 

1,197

 

 

1,532

 

Production ramp up costs related to joint venture

 

6,552

 

 

8,486

 

 

3,350

 

 

21,029

 

 

7,983

 

Non-GAAP gross profit

 

$

29,368

 

 

$

33,296

 

 

$

29,473

 

 

$

96,023

 

 

$

97,257

 

Non-GAAP gross margin as a % of revenue

 

27.5

%

 

28.3

%

 

27.0

%

 

28.0

%

 

28.7

%

 

 

 

 

 

 

 

 

 

 

 

GAAP operating loss

 

$

(8,619

)

 

$

(3,370

)

 

$

(3,735

)

 

$

(12,610

)

 

$

(6,062

)

Share-based compensation

 

2,876

 

 

2,487

 

 

3,112

 

 

7,732

 

 

10,659

 

Pre-production expenses related to joint venture

 

 

 

 

 

3,584

 

 

 

 

11,945

 

Production ramp up costs related to joint venture

 

6,552

 

 

8,486

 

 

3,350

 

 

21,029

 

 

7,983

 

Legal costs related to government investigation

 

2,133

 

 

 

 

 

 

2,133

 

 

 

Impairment of privately-held investment

 

600

 

 

 

 

 

 

600

 

 

 

Non-GAAP operating income

 

$

3,542

 

 

$

7,603

 

 

$

6,311

 

 

$

18,884

 

 

$

24,525

 

Non-GAAP operating margin as a % of revenue

 

3.3

%

 

6.5

%

 

5.8

%

 

5.5

%

 

7.2

%

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss attributable to AOS

 

$

(6,495

)

 

$

(1,005

)

 

$

(1,555

)

 

$

(6,491

)

 

$

(684

)

Share-based compensation

 

2,876

 

 

2,487

 

 

3,112

 

 

7,732

 

 

10,659

 

Pre-production expenses related to joint venture

 

 

 

 

 

2,215

 

 

 

 

7,335

 

Production ramp up costs related to joint venture

 

3,764

 

 

4,294

 

 

1,705

 

 

11,156

 

 

4,199

 

Legal costs related to government investigation

 

2,133

 

 

 

 

 

 

2,133

 

 

 

Impairment of privately-held investment

 

600

 

 

 

 

 

 

600

 

 

 

Income tax effect of non-GAAP adjustments

 

0

 

 

(2

)

 

(17

)

 

(7

)

 

(30

)

Non-GAAP net income attributable to AOS

 

$

2,878

 

 

$

5,774

 

 

$

5,460

 

 

$

15,123

 

 

$

21,479

 

Non-GAAP net margin attributable to AOS as a % of revenue

 

2.7

%

 

4.9

%

 

5.0

%

 

4.4

%

 

6.3

%

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss attributable to AOS

 

$

(6,495

)

 

$

(1,005

)

 

$

(1,555

)

 

$

(6,491

)

 

$

(684

)

Share-based compensation

 

2,876

 

 

2,487

 

 

3,112

 

 

7,732

 

 

10,659

 

Amortization and depreciation

 

11,784

 

 

10,850

 

 

8,010

 

 

33,538

 

 

24,159

 

Interest expense, net

 

1,633

 

 

992

 

 

1,650

 

 

2,405

 

 

4,738

 

Income tax expense (income)

 

(1,015

)

 

568

 

 

625

 

 

(37

)

 

1,886

 

EBITDAS

 

$

8,783

 

 

$

13,892

 

 

$

11,842

 

 

$

37,147

 

 

$

40,758

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted net loss per share attributable to AOS

 

$

(0.26

)

 

$

(0.04

)

 

$

(0.06

)

 

$

(0.26

)

 

$

(0.03

)

Share-based compensation

 

0.11

 

 

0.10

 

 

0.12

 

 

0.30

 

 

0.43

 

Pre-production expenses related to joint venture

 

 

 

 

 

0.09

 

 

 

 

0.30

 

Production ramp up costs related to joint venture

 

0.15

 

 

0.17

 

 

0.07

 

 

0.44

 

 

0.17

 

Legal costs related to government investigation

 

0.09

 

 

 

 

 

 

0.09

 

 

 

Impairment of privately-held investment

 

0.02

 

 

 

 

 

 

0.02

 

 

 

Income tax effect of non-GAAP adjustments

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

Non-GAAP diluted net income per share attributable to AOS

 

$

0.11

 

 

$

0.23

 

 

$

0.22

 

 

$

0.59

 

 

$

0.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute GAAP diluted net income per share

 

24,894

 

 

24,701

 

 

24,084

 

 

24,711

 

 

23,938

 

Shares used to compute Non-GAAP diluted net income per share

 

25,889

 

 

25,594

 

 

24,769

 

 

25,538

 

 

24,598

 


« Previous Page 1 | 2 | 3 | 4  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise