Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Third Quarter of 2024 Ended March 31, 2024
The results for the fiscal third quarter of 2024 ended
GAAP Financial Comparison |
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Quarterly |
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(in millions, except percentage and per share data) |
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(unaudited) |
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Three Months Ended |
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Revenue |
|
$ |
150.1 |
|
|
$ |
165.3 |
|
|
$ |
132.6 |
|
Gross Margin |
|
|
23.7 |
% |
|
|
26.6 |
% |
|
|
23.2 |
% |
Operating Loss |
|
$ |
(10.5 |
) |
|
$ |
(1.1 |
) |
|
$ |
(14.4 |
) |
Net Loss |
|
$ |
(11.2 |
) |
|
$ |
(2.9 |
) |
|
$ |
(18.9 |
) |
Net Loss Per Share - Diluted |
|
$ |
(0.39 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.68 |
) |
Non-GAAP Financial Comparison |
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Quarterly |
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(in millions, except percentage and per share data) |
||||||||||||
(unaudited) |
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|
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|
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Three Months Ended |
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Revenue |
|
$ |
150.1 |
|
|
$ |
165.3 |
|
|
$ |
132.6 |
|
Non-GAAP Gross Margin |
|
|
25.2 |
% |
|
|
28.0 |
% |
|
|
25.1 |
% |
Non-GAAP Operating Income (Loss) |
|
$ |
(1.1 |
) |
|
$ |
8.4 |
|
|
$ |
(2.9 |
) |
Non-GAAP Net Income (Loss) |
|
$ |
(1.2 |
) |
|
$ |
7.2 |
|
|
$ |
(5.9 |
) |
Non-GAAP Net Income (Loss) Per Share - Diluted |
|
$ |
(0.04 |
) |
|
$ |
0.24 |
|
|
$ |
(0.21 |
) |
The non-GAAP financial measures in the schedule above and under the section “Financial Results for Fiscal Q3 Ended
Financial Results for Fiscal Q3 Ended
-
Revenue was
$150.1 million , a decrease of 9.2% from the prior quarter and an increase of 13.2% from the same quarter last year. - GAAP gross margin was 23.7%, down from 26.6% in the prior quarter and up from 23.2% in the same quarter last year.
- Non-GAAP gross margin was 25.2%, down from 28.0% in the prior quarter and up from 25.1% in the same quarter last year.
-
GAAP operating expenses were
$46.1 million , up from$45.1 million in the prior quarter and up from$45.2 million in the same quarter last year. -
Non-GAAP operating expenses were
$38.9 million , up from$37.9 million from last quarter and up from$36.2 million in the same quarter last year. -
GAAP operating loss was
$10.5 million , up from$1.1 million of operating loss in the prior quarter and down from$14.4 million of operating loss in the same quarter last year. -
Non-GAAP operating loss was
$1.1 million as compared to$8.4 million of operating income for the prior quarter and$2.9 million of operating loss for the same quarter last year. -
GAAP net loss per diluted share was
$0.39 , compared to$0.10 net loss per share for the prior quarter, and$0.68 net loss per share for the same quarter a year ago. -
Non-GAAP net loss per share was
$0.04 compared to$0.24 net income per share for the prior quarter and 0.21 net loss per share for the same quarter a year ago. -
Consolidated cash flow provided by operating activities was
$28.2 million , as compared to$23.5 million of cash flow used in operating activities in the prior quarter. -
The Company closed the quarter with
$174.4 million of cash and cash equivalents.
AOS Chief Executive Officer
Business Outlook for Fiscal Q4 Ending
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 fourth quarter of year 2024 are as follows:
-
Revenue to be approximately
$160 million , plus or minus$10 million . - GAAP gross margin to be 24.7%, plus or minus 1%. We anticipate non-GAAP gross margin to be 26.3%, plus or minus 1%.
-
GAAP operating expenses to be in the range of
$47.9 million , plus or minus$1 million . Non-GAAP operating expenses are expected to be in the range of$39.5 million , plus or minus$1 million . -
Net interest expense to be approximately
$0.5 million , and -
Income tax expense to be approximately
$0.9 million .
Conference Call and Webcast
AOS plans to hold an investor teleconference and live webcast to discuss the financial results for the fiscal third quarter ended
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 penetrate new markets and achieve long-term growth, our ability to improve our financial performance in 2024, our ability to increase BOM content, 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 continue to win and acquire market share and other information under the section entitled “Business Outlook for Fiscal Q4 Ending
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with
About
The following unaudited condensed consolidated financial statements are prepared in accordance with
|
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Condensed Consolidated Statements of Operations |
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(in thousands, except percentages and per share amounts) |
|||||||||||||||||||
(unaudited) |
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|
|
|
|
|
|
|
|
|
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Three Months Ended |
|
Nine Months Ended |
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Revenue |
$ |
150,060 |
|
|
$ |
165,285 |
|
|
$ |
132,560 |
|
|
$ |
495,978 |
|
|
$ |
529,796 |
|
Cost of goods sold |
|
114,505 |
|
|
|
121,284 |
|
|
|
101,774 |
|
|
|
365,497 |
|
|
|
374,841 |
|
Gross profit |
|
35,555 |
|
|
|
44,001 |
|
|
|
30,786 |
|
|
|
130,481 |
|
|
|
154,955 |
|
Gross margin |
|
23.7 |
% |
|
|
26.6 |
% |
|
|
23.2 |
% |
|
|
26.3 |
% |
|
|
29.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
23,095 |
|
|
|
22,919 |
|
|
|
22,578 |
|
|
|
68,127 |
|
|
|
65,435 |
|
Selling, general and administrative |
|
22,964 |
|
|
|
22,216 |
|
|
|
22,610 |
|
|
|
64,611 |
|
|
|
69,603 |
|
Total operating expenses |
|
46,059 |
|
|
|
45,135 |
|
|
|
45,188 |
|
|
|
132,738 |
|
|
|
135,038 |
|
Operating income (loss) |
|
(10,504 |
) |
|
|
(1,134 |
) |
|
|
(14,402 |
) |
|
|
(2,257 |
) |
|
|
19,917 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (loss), net |
|
308 |
|
|
|
(472 |
) |
|
|
(513 |
) |
|
|
(138 |
) |
|
|
(1,432 |
) |
Interest income (expense), net |
|
271 |
|
|
|
274 |
|
|
|
5 |
|
|
|
774 |
|
|
|
(1,000 |
) |
Net income (loss) before income taxes |
|
(9,925 |
) |
|
|
(1,332 |
) |
|
|
(14,910 |
) |
|
|
(1,621 |
) |
|
|
17,485 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax expense |
|
611 |
|
|
|
894 |
|
|
|
2,517 |
|
|
|
2,643 |
|
|
|
5,550 |
|
Net income (loss) before income (loss) from equity method investment |
|
(10,536 |
) |
|
|
(2,226 |
) |
|
|
(17,427 |
) |
|
|
(4,264 |
) |
|
|
11,935 |
|
Equity method investment income (loss) from equity investee |
|
(676 |
) |
|
|
(697 |
) |
|
|
(1,480 |
) |
|
|
(4,085 |
) |
|
|
1,533 |
|
Net income (loss) |
$ |
(11,212 |
) |
|
$ |
(2,923 |
) |
|
$ |
(18,907 |
) |
|
$ |
(8,349 |
) |
|
$ |
13,468 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
(0.39 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.30 |
) |
|
$ |
0.49 |
|
Diluted |
$ |
(0.39 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.30 |
) |
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average number of common shares used to compute net income (loss) per share |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
28,433 |
|
|
|
27,939 |
|
|
|
27,710 |
|
|
|
28,022 |
|
|
|
27,537 |
|
Diluted |
|
28,433 |
|
|
|
27,939 |
|
|
|
27,710 |
|
|
|
28,022 |
|
|
|
29,576 |
|
|
|
|
|
|
|
|
|
|
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Condensed Consolidated Balance Sheets |
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(in thousands, except par value per share) |
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(unaudited) |
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ASSETS |
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|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
174,387 |
|
|
$ |
195,188 |
|
Restricted cash |
|
208 |
|
|
|
415 |
|
Accounts receivable, net |
|
13,254 |
|
|
|
22,420 |
|
Inventories |
|
198,098 |
|
|
|
183,247 |
|
Other current assets |
|
8,604 |
|
|
|
22,666 |
|
Total current assets |
|
394,551 |
|
|
|
423,936 |
|
Property, plant and equipment, net |
|
339,515 |
|
|
|
357,831 |
|
Operating lease right-of-use assets |
|
24,421 |
|
|
|
24,349 |
|
Intangible assets, net |
|
4,328 |
|
|
|
6,765 |
|
Equity method investment |
|
359,244 |
|
|
|
366,617 |
|
Deferred income tax assets |
|
499 |
|
|
|
536 |
|
Other long-term assets |
|
31,491 |
|
|
|
19,703 |
|
Total assets |
$ |
1,154,049 |
|
|
$ |
1,199,737 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
42,513 |
|
|
$ |
50,775 |
|
Accrued liabilities |
|
73,587 |
|
|
|
79,533 |
|
Payable related to equity investee, net |
|
14,275 |
|
|
|
11,950 |
|
Income taxes payable |
|
4,490 |
|
|
|
5,546 |
|
Short-term debt |
|
11,584 |
|
|
|
11,434 |
|
Deferred revenue |
|
7,664 |
|
|
|
8,073 |
|
Finance lease liabilities |
|
917 |
|
|
|
867 |
|
Operating lease liabilities |
|
4,909 |
|
|
|
4,383 |
|
Total current liabilities |
|
159,939 |
|
|
|
172,561 |
|
Long-term debt |
|
29,653 |
|
|
|
38,360 |
|
Income taxes payable - long-term |
|
2,978 |
|
|
|
2,817 |
|
Deferred income tax liabilities |
|
26,337 |
|
|
|
27,283 |
|
Finance lease liabilities - long-term |
|
2,522 |
|
|
|
3,216 |
|
Operating lease liabilities - long-term |
|
20,099 |
|
|
|
20,544 |
|
Other long-term liabilities |
|
23,584 |
|
|
|
51,037 |
|
Total liabilities |
|
265,112 |
|
|
|
315,818 |
|
Shareholders' Equity: |
|
|
|
||||
Preferred shares, par value |
|
|
|
||||
Authorized: 10,000 shares; issued and outstanding: none at |
|
— |
|
|
|
— |
|
Common shares, par value |
|
|
|
||||
Authorized: 100,000 shares; issued and outstanding: 35,836 shares and 28,697 shares, respectively at |
|
72 |
|
|
|
70 |
|
|
|
(79,220 |
) |
|
|
(79,365 |
) |
Additional paid-in capital |
|
345,413 |
|
|
|
329,034 |
|
Accumulated other comprehensive loss |
|
(11,125 |
) |
|
|
(8,111 |
) |
Retained earnings |
|
633,797 |
|
|
|
642,291 |
|
Total shareholders' equity |
|
888,937 |
|
|
|
883,919 |
|
Total liabilities and shareholders' equity |
$ |
1,154,049 |
|
|
$ |
1,199,737 |
|
|
|||||||
Selected Cash Flow Information |
|||||||
( in thousands, unaudited) |
|||||||
|
|
|
|
||||
|
Nine Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
18,591 |
|
|
$ |
48,654 |
|
Net cash used in investing activities |
|
(28,593 |
) |
|
|
(90,603 |
) |
Net cash used in financing activities |
|
(10,923 |
) |
|
|
(6,417 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(83 |
) |
|
|
(121 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(21,008 |
) |
|
|
(48,487 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
195,603 |
|
|
|
314,651 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
174,595 |
|
|
$ |
266,164 |
|
|
|
|
|
|
||||||||||||||||||||
Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures |
||||||||||||||||||||
(in thousands, except percentages and per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
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|
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||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
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|
|
|
|
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|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP gross profit |
|
$ |
35,555 |
|
|
$ |
44,001 |
|
|
$ |
30,786 |
|
|
|
130,481 |
|
|
$ |
154,955 |
|
Share-based compensation |
|
|
1,424 |
|
|
|
1,504 |
|
|
|
1,723 |
|
|
|
3,140 |
|
|
|
5,259 |
|
Amortization of purchased intangible |
|
|
812 |
|
|
|
812 |
|
|
|
812 |
|
|
|
2,435 |
|
|
|
2,435 |
|
Non-GAAP gross profit |
|
$ |
37,791 |
|
|
$ |
46,317 |
|
|
$ |
33,321 |
|
|
$ |
136,056 |
|
|
$ |
162,649 |
|
Non-GAAP gross margin as a % of revenue |
|
|
25.2 |
% |
|
|
28.0 |
% |
|
|
25.1 |
% |
|
|
27.4 |
% |
|
|
30.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP operating expense |
|
$ |
46,059 |
|
|
$ |
45,135 |
|
|
$ |
45,188 |
|
|
$ |
132,738 |
|
|
$ |
135,038 |
|
Share-based compensation |
|
|
7,041 |
|
|
|
7,187 |
|
|
|
8,709 |
|
|
|
14,934 |
|
|
|
28,860 |
|
Legal costs related to government investigation |
|
|
103 |
|
|
|
16 |
|
|
|
304 |
|
|
|
172 |
|
|
|
556 |
|
Non-GAAP operating expense |
|
$ |
38,915 |
|
|
$ |
37,932 |
|
|
$ |
36,175 |
|
|
$ |
117,632 |
|
|
$ |
105,622 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP operating income (loss) |
|
$ |
(10,504 |
) |
|
$ |
(1,134 |
) |
|
$ |
(14,402 |
) |
|
$ |
(2,257 |
) |
|
$ |
19,917 |
|
Share-based compensation |
|
|
8,465 |
|
|
|
8,691 |
|
|
|
10,432 |
|
|
|
18,074 |
|
|
|
34,119 |
|
Amortization of purchased intangible |
|
|
812 |
|
|
|
812 |
|
|
|
812 |
|
|
|
2,435 |
|
|
|
2,435 |
|
Legal costs related to government investigation |
|
|
103 |
|
|
|
16 |
|
|
|
304 |
|
|
|
172 |
|
|
|
556 |
|
Non-GAAP operating income (loss) |
|
$ |
(1,124 |
) |
|
$ |
8,385 |
|
|
$ |
(2,854 |
) |
|
$ |
18,424 |
|
|
$ |
57,027 |
|
Non-GAAP operating margin as a % of revenue |
|
|
(0.7 |
)% |
|
|
5.1 |
% |
|
|
(2.2 |
)% |
|
|
3.7 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net income (loss) |
|
$ |
(11,212 |
) |
|
$ |
(2,923 |
) |
|
$ |
(18,907 |
) |
|
$ |
(8,349 |
) |
|
$ |
13,468 |
|
Share-based compensation |
|
|
8,465 |
|
|
|
8,691 |
|
|
|
10,432 |
|
|
|
18,074 |
|
|
|
34,119 |
|
Amortization of purchased intangible |
|
|
812 |
|
|
|
812 |
|
|
|
812 |
|
|
|
2,435 |
|
|
|
2,435 |
|
Equity method investment (income) loss from equity investee |
|
|
676 |
|
|
|
697 |
|
|
|
1,480 |
|
|
|
4,085 |
|
|
|
(1,533 |
) |
Legal costs related to government investigation |
|
|
103 |
|
|
|
16 |
|
|
|
304 |
|
|
|
172 |
|
|
|
556 |
|
Income tax effect of non-GAAP adjustments |
|
|
(47 |
) |
|
|
(96 |
) |
|
|
3 |
|
|
|
(549 |
) |
|
|
244 |
|
Non-GAAP net income (loss) |
|
$ |
(1,203 |
) |
|
$ |
7,197 |
|
|
$ |
(5,876 |
) |
|
$ |
15,868 |
|
|
$ |
49,289 |
|
Non-GAAP net margin as a % of revenue |
|
|
(0.8 |
)% |
|
|
4.4 |
% |
|
|
(4.4 |
)% |
|
|
3.2 |
% |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net income (loss) |
|
$ |
(11,212 |
) |
|
$ |
(2,923 |
) |
|
$ |
(18,907 |
) |
|
$ |
(8,349 |
) |
|
$ |
13,468 |
|
Share-based compensation |
|
|
8,465 |
|
|
|
8,691 |
|
|
|
10,432 |
|
|
|
18,074 |
|
|
|
34,119 |
|
Amortization and depreciation |
|
|
13,325 |
|
|
|
13,573 |
|
|
|
11,006 |
|
|
|
39,849 |
|
|
|
31,162 |
|
Equity method investment (income) loss from equity investee |
|
|
676 |
|
|
|
697 |
|
|
|
1,480 |
|
|
|
4,085 |
|
|
|
(1,533 |
) |
Interest expense (income), net |
|
|
(271 |
) |
|
|
(274 |
) |
|
|
(5 |
) |
|
|
(774 |
) |
|
|
1,000 |
|
Income tax expense |
|
|
611 |
|
|
|
894 |
|
|
|
2,517 |
|
|
|
2,643 |
|
|
|
5,550 |
|
EBITDAS |
|
$ |
11,594 |
|
|
$ |
20,658 |
|
|
$ |
6,523 |
|
|
$ |
55,528 |
|
|
$ |
83,766 |
|
GAAP diluted net income (loss) per share |
|
$ |
(0.39 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.28 |
) |
|
$ |
0.46 |
|
Share-based compensation |
|
|
0.30 |
|
|
|
0.29 |
|
|
|
0.38 |
|
|
|
0.60 |
|
|
|
1.15 |
|
Amortization of purchased intangible |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.08 |
|
|
|
0.08 |
|
Equity method investment (income) loss from equity investee |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.14 |
|
|
|
(0.05 |
) |
Legal costs related to government investigation |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
Income tax effect of non-GAAP adjustments |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
(0.02 |
) |
|
|
0.01 |
|
Non-GAAP diluted net income (loss) per share |
|
$ |
(0.04 |
) |
|
$ |
0.24 |
|
|
$ |
(0.21 |
) |
|
$ |
0.53 |
|
|
$ |
1.67 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average number of common shares used to compute GAAP diluted net income (loss) per share |
|
|
28,433 |
|
|
|
27,939 |
|
|
|
27,710 |
|
|
|
28,022 |
|
|
|
29,576 |
|
Weighted average number of common shares used to compute Non-GAAP diluted net income (loss) per share |
|
|
28,433 |
|
|
|
29,874 |
|
|
|
27,710 |
|
|
|
29,915 |
|
|
|
29,576 |
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506803216/en/
Investor and media inquiries:
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In
gary@blueshirtgroup.co
steven@blueshirtgroup.co
+1 (360) 808-5154
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