Alpha and Omega Semiconductor Reports Financial Results for the

Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2022 Ended December 31, 2021

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 personal and portable computers, graphic cards, flat panel TVs, home appliances, smart phones, battery packs, quick chargers, home appliances, 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.


Condensed Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)

	Three Months Ended									Six Months Ended
	December 31, 2021			September 30, 2021			December 31, 2020			December 31, 2021			December 31, 2020

Revenue	$	193,319		$	187,035		$	158,830		$	380,354		$	310,381
Cost of goods sold		124,954			122,468			110,081			247,422			219,109
Gross profit		68,365			64,567			48,749			132,932			91,272
Gross margin		35.4	%		34.5	%		30.7	%		34.9	%		29.4	%

Operating expenses:
Research and development		16,516			17,812			15,423			34,328			30,114
Selling, general and administrative		24,132			21,806			19,736			45,938			37,241
Total operating expenses		40,648			39,618			35,159			80,266			67,355
Operating income		27,717			24,949			13,590			52,666			23,917

Interest expense and other income (loss), net		(68	)		(2,192	)		(381	)		(2,260	)		(930	)
Gain on deconsolidation of the JV Company		399,093			—			—			399,093			—
Loss on changes of equity interest in the JV Company, net		(7,641	)		—			—			(7,641	)		—
Net income before income taxes		419,101			22,757			13,209			441,858			22,987

Income tax expense		34,096			1,320			669			35,416			1,680
Net income		385,005			21,437			12,540			406,442			21,307
Net gain (loss) attributable to noncontrolling interest		2,007			(1,987	)		(363	)		20			(1,170	)
Net income attributable to Alpha and Omega Semiconductor Limited	$	382,998		$	23,424		$	12,903		$	406,422		$	22,477

Net income per common share attributable to Alpha and Omega Semiconductor Limited
Basic	$	14.40		$	0.89		$	0.50		$	15.35		$	0.88
Diluted	$	13.54		$	0.85		$	0.47		$	14.53		$	0.84

Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net income per share
Basic		26,593			26,365			25,672			26,479			25,506
Diluted		28,287			27,638			27,353			27,963			26,834

Alpha and Omega Semiconductor Limited
Condensed Consolidated Balance Sheets
(in thousands, except par value per share)
(unaudited)

	December 31, 2021			June 30, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	269,306		$	202,412
Restricted cash		314			233
Accounts receivable, net		31,661			35,789
Other receivable, equity investee		25,030			—
Inventories		129,084			154,293
Other current assets		11,312			14,595
Total current assets		466,707			407,322
Property, plant and equipment, net		196,743			436,977
Operating lease right-of-use assets, net		22,263			34,660
Intangible assets, net		11,730			13,410
Equity method investment		376,061			—
Deferred income tax assets		440			5,167
Restricted cash - long-term		—			2,168
Other long-term assets		37,931			18,869
Total assets	$	1,111,875		$	918,573
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	62,175		$	80,699
Accrued liabilities		95,212			69,494
Income taxes payable		7,337			2,604
Short-term debt		8,960			58,030
Finance lease liabilities		—			16,724
Operating lease liabilities		4,293			5,679
Total current liabilities		177,977			233,230
Long-term debt		13,707			77,990
Income taxes payable - long-term		1,345			1,319
Deferred income tax liabilities		27,742			2,448
Finance lease liabilities - long-term		—			12,698
Operating lease liabilities - long-term		19,430			30,440
Other long-term liabilities		77,684			44,123
Total liabilities		317,885			402,248
Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at December 31, 2021 and June 30, 2021		—			—
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 33,329 shares and 26,706 shares, respectively at December 31, 2021 and 32,975 shares and 26,350 shares, respectively at June 30, 2021		67			66
Treasury shares at cost: 6,623 shares at December 31, 2021 and 6,625 shares at June 30, 2021		(66,046	)		(66,064	)
Additional paid-in capital		275,410			259,993
Accumulated other comprehensive income		1,260			2,315
Retained earnings		583,299			176,895
Total Alpha and Omega Semiconductor Limited shareholder's equity		793,990			373,205
Noncontrolling interest		—			143,120
Total equity		793,990			516,325
Total liabilities and equity	$	1,111,875		$	918,573

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									Six Months Ended
	December 31, 2021			September 30, 2021			December 31, 2020			December 31, 2021			December 31, 2020

GAAP gross profit	$	68,365		$	64,567		$	48,749		$	132,932		$	91,272
Share-based compensation		1,709			569			383			2,278			768
Amortization of purchased intangible		811			812			811			1,623			1,623
Production ramp up costs related to joint venture		—			—			—			—			275
Non-GAAP gross profit	$	70,885		$	65,948		$	49,943		$	136,833		$	92,315
Non-GAAP gross margin as a % of revenue		36.7	%		35.3	%		31.4	%		36.0	%		30.3	%

GAAP operating expense	$	40,648		$	39,618		$	35,159		$	80,266		$	67,355
Share-based compensation		6,838			4,066			2,841			10,904			5,332
Legal costs related to government investigation		293			431			843			724			1,950
Non-GAAP operating expense	$	33,517		$	35,121		$	31,475		$	68,638		$	60,073

GAAP operating income	$	27,717		$	24,949		$	13,590		$	52,666		$	23,917
Share-based compensation		8,547			4,635			3,224			13,182			6,100
Amortization of purchased intangible		811			812			811			1,623			1,623
Production ramp up costs related to joint venture		—			—			—			—			275
Legal costs related to government investigation		293			431			843			724			1,950
Non-GAAP operating income	$	37,368		$	30,827		$	18,468		$	68,195		$	33,865
Non-GAAP operating margin as a % of revenue		19.3	%		16.5	%		11.6	%		17.9	%		10.9	%

GAAP net income attributable to AOS	$	382,998		$	23,424		$	12,903		$	406,422		$	22,477
Share-based compensation		8,547			4,635			3,224			13,182			6,100
Amortization of purchased intangible		811			812			811			1,623			1,623
Gain on deconsolidation and changes of the equity interest in the JV Company		(391,452	)		—			—			(391,452	)		—
Production ramp up costs related to joint venture		—			—			—			—			135
Legal costs related to government investigation		293			431			843			724			1,950
Income tax effect of non-GAAP adjustments		32,800			1			(1	)		32,801			(9	)
Non-GAAP net income attributable to AOS	$	33,997		$	29,303		$	17,780		$	63,300		$	32,276
Non-GAAP net margin attributable to AOS as a % of revenue		17.6	%		15.7	%		11.2	%		16.6	%		10.4	%

GAAP net income attributable to AOS	$	382,998		$	23,424		$	12,903		$	406,422		$	22,477
Share-based compensation		8,547			4,635			3,224			13,182			6,100
Gain on deconsolidation and changes of the equity interest in the JV Company		(391,452	)		—			—			(391,452	)		—
Amortization and depreciation		11,938			13,722			13,200			25,660			25,689
Interest expense (income), net		541			2,176			1,649			2,717			3,271
Income tax expense		34,096			1,320			669			35,416			1,680
EBITDAS	$	46,668		$	45,277		$	31,645		$	91,945		$	59,217

GAAP diluted net income per share attributable to AOS	$	13.54		$	0.85		$	0.47		$	14.53		$	0.84
Share-based compensation		0.30			0.16			0.12			0.47			0.23
Gain on deconsolidation and changes of the equity interest in the JV Company		(13.84	)		—			—			(14.00	)		—
Production ramp up costs related to joint venture		—			—			—			—			0.01
Legal costs related to government investigation		0.01			0.02			0.03			0.03			0.07
Amortization of purchased intangible		0.03			0.03			0.03			0.06			0.06
Income tax effect of non-GAAP adjustments		1.16			0.00			(0.00	)		1.17			(0.00	)
Non-GAAP diluted net income per share attributable to AOS	$	1.20		$	1.06		$	0.65		$	2.26		$	1.20

Shares used to compute GAAP diluted net income (loss) per share		28,287			27,638			27,353			27,963			26,834
Shares used to compute Non-GAAP diluted net income per share		28,287			27,638			27,353			27,963			26.834

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