Non-GAAP EPS was a loss of 16¢ per share. In addition, we repurchased approximately $13,900,000 of AOS shares during December, representing 728,000 shares as part of our recently announced $30,000,000 share repurchase program approved by the board. Following these purchases, approximately $16,000,000 remains available. This balanced approach to capital allocation reflects the board and management's confidence in our strategy and execution while maintaining the financial strength needed to invest for long-te ...

Alpha and Omega Semiconductor (AOSL) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100.00%. A quarter ago, it was expected that this chipmaker would post earnings of $0.1 per share when it actually produced earnings of $0.13, delivering a surprise of +30%.Over the last four quarters, t ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $162.3 million, down 6.3% year-over-year and down 11.1% sequentially [4][18] - Non-GAAP gross margin was 22.2%, compared to 24.1% in the previous quarter and 24.2% a year ago [18] - Non-GAAP EPS was a loss of $0.16 per share, compared to a profit of $0.13 in the prior quarter and $0.09 a year ago [20] - Operating cash flow was negative $8.1 million, down from positive $10.2 million in the prior quarter [20][21] Business Line Data and Key Metrics Changes - Computing segment revenue was $80.5 million, representing 49.6% of total revenue, down 17.1% sequentially but up 5.9% year-over-year [10][12] - Consumer segment revenue was $19.2 million, down 14.9% year-over-year and down 18.3% sequentially, accounting for 11.8% of total revenue [13][14] - Communication segment revenue was $33.1 million, flat year-over-year and up 1.1% sequentially, representing 20.4% of total revenue [15] - Power supply and industrial segment revenue was $27.1 million, down 22.5% year-over-year and down 3% sequentially, accounting for 16.7% of total revenue [16] Market Data and Key Metrics Changes - Demand for PCs is expected to be constrained due to memory shortages, but data center investments are providing an offset [11][57] - The company is seeing increased BOM content in new platforms, particularly in AI and high-performance applications [9][57] - The smartphone market remains uneven, with strong performance from Tier 1 US customers but mixed results from China [15] Company Strategy and Development Direction - The company is transitioning from a component supplier to a provider of application-specific total solutions, focusing on higher performance markets [6][7] - Increased R&D investments are being made in areas with clear differentiation and strong customer engagement [7][40] - The company is monetizing a portion of its equity interests in a joint venture to support strategic investments [8] Management's Comments on Operating Environment and Future Outlook - Management expects the March quarter to be a near-term low point for revenue and margin, with growth anticipated beginning in the June quarter [17] - The company is optimistic about the impact of its total solution strategy and expects to see tangible results in 2026 [9][17] - There is confidence in the ability to penetrate further into the PC and smartphone markets despite memory supply challenges [57] Other Important Information - The company repurchased approximately $13.9 million of shares during the December quarter, with $16 million remaining in the repurchase program [5] - CapEx for the quarter was $15 million, with expectations for the March quarter to range from $15 million to $18 million [21] Q&A Session Summary Question: AI opportunities and GPU track - Management noted that while AI opportunities are less than originally expected, they are expanding into medium-voltage MOSFETs for power conversions [25] Question: Operating expenses normalization - Operating expenses are expected to increase by about $4 million in the March quarter, primarily due to R&D investments [27] Question: Capacity and balance sheet - The company is investing in CapEx to prepare for growth in 2026 and is building up capacity [30] Question: Gross margin expectations - March quarter guidance reflects lower utilization due to seasonal factors, with expectations for margins to rebound in the June quarter [36] Question: R&D investment specifics - Increased R&D will focus on areas with competitive leverage, including AI applications and smartphone battery protection [40] Question: Advanced compute product investment - The company is targeting AI applications and medium voltage power conversion, with expectations for significant growth in these areas [48][52]

Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $162.3 million, down 6.3% year-over-year and down 11.1% sequentially [4][18] - Non-GAAP gross margin was 22.2%, compared to 24.1% last quarter and 24.2% a year ago [18] - Non-GAAP EPS was a loss of $0.16 per share, compared to a profit of $0.13 last quarter and $0.09 a year ago [20] - Operating cash flow was negative $8.1 million, down from positive $10.2 million in the prior quarter [20][21] Business Line Data and Key Metrics Changes - Computing segment revenue was $80.5 million, representing 49.6% of total revenue, down 17.1% sequentially but up 5.9% year-over-year [10][12] - Consumer segment revenue was down 14.9% year-over-year and down 18.3% sequentially, accounting for 11.8% of total revenue [13][14] - Communication segment revenue was flat year-over-year and increased 1.1% sequentially, representing 20.4% of total revenue [15] - Power supply and industrial segment revenue was down 22.5% year-over-year and down 3% sequentially, accounting for 16.7% of total revenue [16] Market Data and Key Metrics Changes - Demand for PCs is expected to be constrained due to memory shortages, but data center investments are providing an offset [11][57] - The smartphone market is seeing uneven demand from China, while the U.S. market remains strong [15] - The company is experiencing growth in high-performance, medium-voltage solutions for AI data centers [10][9] Company Strategy and Development Direction - The company is transitioning from a component supplier to a provider of application-specific total solutions, focusing on higher performance markets [6][7] - Increased R&D investments are being made in areas with strong customer engagement and clear differentiation [7][40] - The company is monetizing a portion of its equity interests in a joint venture to support strategic investments [8] Management's Comments on Operating Environment and Future Outlook - Management expects the March quarter to be a near-term low point for revenue and margin, with growth returning in the June quarter [17] - The company anticipates modest growth in 2026, with stronger growth expected in 2027 and beyond as new platforms ramp up [17][57] - Management is confident in the ability to penetrate further into the PC and smartphone markets despite memory supply challenges [57] Other Important Information - The company repurchased approximately $13.9 million of shares during the December quarter [5] - CapEx for the quarter was $15 million, with expectations for the March quarter to range from $15 million to $18 million [21] Q&A Session Questions and Answers Question: AI opportunities and GPU track - The AI opportunity is expanding beyond initial expectations, with the company addressing medium-voltage MOSFETs for power conversions [25] Question: Operating expenses normalization - Operating expenses are expected to increase by about $4 million in the March quarter, primarily due to R&D investments [27] Question: Capacity and gross margin - The company is investing in CapEx to prepare for growth in 2026, which may help improve gross margins [30] Question: Gross margin guidance - March quarter guidance reflects lower utilization due to seasonal factors, with expectations for margins to rebound in the June quarter [36] Question: R&D investment specifics - Increased R&D will focus on areas with competitive leverage, including AI applications and smartphone battery protection [40] Question: Revenue return on investment - AI-related revenue could potentially increase to 50% of the computing segment, depending on market penetration [52]

Alpha and Omega Semiconductor (NasdaqGS:AOSL) Q2 2026 Earnings call February 05, 2026 05:00 PM ET Speaker2Good afternoon. Thank you for attending today's Alpha and Omega Semiconductor Fiscal Second Quarter 2026 earnings call. My name is Victoria, and I'll be your moderator today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press * followed by 1 on your telephone keypad. I would now ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________ FORM 10-Q _________________________________ (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number 001-34717 __________________________ Alpha and Omega Semicond ...

Exhibit 99.1 Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2026 Ended December 31, 2025 SUNNYVALE, California, February 5, 2026 - Alpha and Omega Semiconductor Limited ("AOS") (NASDAQ: AOSL) today reported financial results for the fiscal second quarter of 2026 ended December 31, 2025. Quarterly (in millions, except percentage and per share data) (unaudited) | | | | Three Months Ended | | | | | --- | --- | --- | --- | --- | --- | --- | | | December 31, | | Septembe ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

Product Development - The company introduced over 100 new products in the fiscal year ended June 30, 2025, and 16 new products during the three months ended September 30, 2025, expanding its portfolio to approximately 2,800 products[89] - The company has a patent portfolio consisting of 951 patents and 71 patent applications in the United States, along with 1,067 foreign patents as of September 30, 2025[89] - Research and development expenses are critical for long-term success, with ongoing investments in new technologies and products[109] Financial Performance - Total revenue for the three months ended September 30, 2025, was $182.5 million, an increase of $0.6 million, or 0.3%, compared to $181.9 million for the same quarter last year[124] - Gross profit for the three months ended September 30, 2025, was $42.8 million, a decrease of $1.7 million, or 3.8%, compared to $44.5 million for the same quarter last year[125] - Operating loss for the three months ended September 30, 2025, was $(4.6) million, compared to $(0.3) million for the same quarter last year[122] - Net loss for the three months ended September 30, 2025, was $(2.1) million, compared to $(2.5) million for the same quarter last year[122] Market Impact - The company’s revenue is significantly affected by the PC market, which has experienced a modest global decline, impacting revenue and results of operations[96] - The company is diversifying its product portfolio to reduce reliance on the PC market and improve gross margins through cost control measures[97] Expenses and Costs - The company’s gross margin is influenced by manufacturing costs, capacity utilization, and pricing from third-party foundries[98] - Operating expenses are expected to fluctuate as a percentage of revenue due to cost control measures in response to the declining PC market[108] - Research and development expenses were $24.1 million, an increase of $1.7 million, or 7.4%, compared to $22.5 million for the same quarter last year[126] - Selling, general and administrative expenses increased to $23.3 million for the three months ended September 30, 2025, up by $1.0 million or 4.4% from $22.3 million in the same quarter last year[127] Joint Venture and Investments - The company expects to receive $150 million from the sale of approximately 20.3% of its equity interest in a joint venture, with the first installment of RMB 676 million (or $94.5 million) already received[94] - As of June 30, 2025, the company's ownership interest in the joint venture was reduced to 39.2% after several transactions[93] - An impairment loss of $76.8 million was recorded within equity method investment loss in the fourth quarter of fiscal year 2025[120] - Equity method investment income increased to $1.4 million in Q3 2025, compared to a loss of $1.0 million in Q3 2024, reflecting a change of $2.4 million or 237.9%[132] Cash Flow - Cash, cash equivalents, and restricted cash totaled $223.9 million as of September 30, 2025, up from $153.5 million as of June 30, 2025[142] - Net cash provided by operating activities was $10.2 million in Q3 2025, a decrease of $0.8 million from $11.0 million in Q3 2024[143] - Net cash provided by investing activities increased to $81.9 million in Q3 2025, compared to a cash outflow of $6.7 million in Q3 2024, reflecting a change of $88.7 million[145] - Net increase in cash, cash equivalents, and restricted cash was $70.4 million in Q3 2025, compared to an increase of $0.7 million in Q3 2024[143] Taxation - The effective tax rate is highly dependent on the geographic distribution of worldwide profits or losses and changes in tax laws[114] - A potential 15% corporate income tax may apply to Bermuda companies starting from tax years beginning on or after January 1, 2025, affecting the company's financial position[115] Other Income and Expenses - Other income (loss), net improved to $2.5 million in Q3 2025, compared to a loss of $0.7 million in Q3 2024, representing a change of $3.1 million or 479.7%[128] - Interest income decreased to $0.9 million in Q3 2025, down by $0.4 million or 29.5% from $1.3 million in Q3 2024 due to lower interest rates[130] - Interest expenses decreased to $0.4 million in Q3 2025, down by $0.5 million or 55.7% from $0.8 million in Q3 2024, primarily due to a lower outstanding loan balance[131] - Income tax expense rose to approximately $1.9 million in Q3 2025, an increase of $0.9 million or 85.3% from $1.0 million in Q3 2024[133] Market Risks - No material changes in market risks were reported compared to the previous disclosures in the Annual Report for the year ended June 30, 2025[150]

Core Insights - Alpha and Omega Semiconductor Limited reported a record quarterly revenue of $182.5 million for fiscal Q1 2026, reflecting a 3.4% sequential increase and a slight 0.3% year-over-year growth [2][22] - The company is transitioning to an 800-volt DC power architecture, which is expected to enhance efficiency and open new design opportunities in high-performance computing and data centers [5][20] - The computing segment showed strong performance with a 27.1% year-over-year increase, contributing 53.2% of total revenue, although a decline of nearly 20% is anticipated for December due to seasonal factors [7][10] Financial Performance - Non-GAAP gross margin for the quarter was 24.1%, down from 25.5% a year ago, primarily due to higher operational costs [22][23] - Non-GAAP EPS was reported at $0.13, compared to $0.21 in the same quarter last year [23] - Operating cash flow improved to $10.2 million, up from negative $2.8 million in the prior quarter [23] Segment Analysis - The computing segment revenue increased significantly, driven by demand from PCs and AI platforms, while the consumer segment saw a decline of 25.8% year-over-year [11][12] - The communication segment experienced a 21.4% sequential growth but a 7.8% year-over-year decline, attributed to weaker demand from Chinese smartphone customers [12][13] - Power supply and industrial segment revenue accounted for 15.3% of total revenue, down 12.4% year-over-year, but growth is expected in December driven by power tools [14][15] Strategic Initiatives - The company is focusing on expanding its market presence in high-performance computing and AI, leveraging its investments in technology and engineering talent [6][19] - A significant portion of the capital from the recent joint venture equity sale, approximately $94 million, is being allocated to strategic investments in technology and talent [6][40] - The shift to 800-volt architecture is seen as a critical opportunity for Alpha and Omega to enhance its product offerings and capture new market segments [5][20] Future Outlook - Revenue guidance for December is projected to be around $160 million, with expectations of a decline in several segments due to seasonal trends [26] - The company anticipates steady growth through 2026, with a stronger upturn expected in 2027 as new programs transition into volume production [20][50] - Investments in R&D are planned to support growth in AI and other high-performance applications, indicating a commitment to innovation and market leadership [19][49]