I N V E S T O R P R E S E N TAT I O N D e c e m b e r 1 , 2 0 2 3 ( N a s d a q : A O S L ) SAFE HARBOR STATEMENT This presentation 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, statements relating to expected growth rate, our product portfolios, projected amount of ...

Core Viewpoint - Alpha and Omega Semiconductor Limited (AOS) has launched the AONK40202 25V MOSFET, designed for high power density applications, particularly in AI servers and data center power systems, utilizing innovative Source Down packaging technology to enhance thermal and electrical performance [2][3]. Group 1: Product Features - The AONK40202 MOSFET features a DFN3.3x3.3 Source Down packaging, which simplifies PCB layout and optimizes heat dissipation and electrical performance [2][3]. - This MOSFET can handle a continuous current of up to 319A and operates at a maximum junction temperature of 175°C, significantly improving system-level performance and power density [2]. - Compared to traditional Drain Down packaging, the Source Down design reduces power loss and enhances thermal performance, providing engineers with key advantages in optimizing PCB space utilization [3]. Group 2: Company Overview - AOS specializes in the design, development, production, and global sales of power semiconductors, including Power MOSFETs, SiC, IGBTs, and power ICs [4]. - The company has accumulated extensive intellectual property and technical expertise, enabling it to launch innovative products that meet the complex power demands of advanced electronic devices [4]. - AOS's product portfolio targets high-demand applications such as portable computers, graphics cards, data centers, AI servers, smartphones, and various power supply needs across consumer and industrial sectors [4].

Group 1 - Alpha and Omega Semiconductor (AOS) has experienced a significant decline in its fortunes recently, indicating potential challenges in the power semiconductor industry [1] - The company is a supplier of a diverse range of devices for the power semiconductor sector, which suggests its role in a critical industry [1] Group 2 - The article reflects an alternative viewpoint on the company's current situation, suggesting that there may be differing opinions on its performance and future prospects [1]

Technical Analysis - Alpha and Omega Semiconductor (AOSL) has recently reached a key level of support and has overtaken the 50-day moving average, indicating a short-term bullish trend [1] - The 50-day simple moving average is a significant technical indicator that helps identify support or resistance levels for securities [1] Performance Metrics - AOSL has moved 13% higher over the last four weeks, suggesting potential for further gains [2] - The company currently holds a Zacks Rank 3 (Hold), indicating a neutral outlook [2] Earnings Estimates - There have been 2 positive earnings estimate revisions for AOSL for the current fiscal year, with no downward revisions, leading to an upward movement in the consensus estimate [2][3] - The combination of positive earnings estimate revisions and favorable technical indicators suggests that AOSL may experience additional gains in the near future [3]

Product Development and Portfolio Expansion - The company introduced over 100 new products in the fiscal year ended June 30, 2024, and 75 new products during the nine months ended March 31, 2025, expanding its portfolio to approximately 2,700 products [125]. - As of March 31, 2025, the company held 39.2% equity interest in a joint venture that operates a power semiconductor packaging and testing facility in China, which is critical for product development [128]. - The joint venture received an investment agreement for RMB 500 million ($68.5 million), with the first installment of RMB 40 million ($5.5 million) received on December 31, 2024 [128]. - The company is diversifying its product portfolio to reduce reliance on the declining PC market and improve gross margins through cost control measures [132]. Financial Performance - Revenue for the three months ended March 31, 2025, was $164,635,000, an increase from $150,060,000 in the same period of 2024, representing an increase of 9.5% [157]. - Total revenue for the three months ended March 31, 2025, was $164.6 million, an increase of $14.6 million, or 9.7%, compared to $150.1 million for the same quarter last year [159]. - Total revenue for the nine months ended March 31, 2025, was $519.7 million, an increase of $23.7 million, or 4.8%, compared to $496.0 million for the same period last year [160]. - Revenue from power discrete products increased by $13.0 million, or 13.9%, while power IC products saw an increase of $4.6 million, or 9.2% [159]. Profitability and Margins - Gross profit for the three months ended March 31, 2025, was $35,177,000, which is 21.4% of revenue, compared to $35,555,000 or 23.7% of revenue in 2024 [157]. - Gross profit for the three months ended March 31, 2025, was $35.2 million, representing a gross margin of 21.4%, down from 23.7% in the same quarter last year [161]. - Operating loss for the three months ended March 31, 2025, was $(10,658,000), slightly higher than $(10,504,000) in 2024, reflecting an operating margin of (6.4)% compared to (7.0)% [157]. - Net loss for the three months ended March 31, 2025, was $(10,807,000), compared to $(11,212,000) in 2024, representing a decrease in loss of 3.6% [157]. Research and Development - Research and development expenses are expected to fluctuate as the company continues to invest in new technologies and product development [144]. - Research and development expenses for the three months ended March 31, 2025, were $23,398,000, accounting for 14.2% of revenue, compared to $23,095,000 or 15.4% in 2024 [157]. - Research and development expenses for the three months ended March 31, 2025, were $23.1 million, an increase of $0.3 million, or 1.3%, compared to the same quarter last year [163]. Operating Expenses - The company’s operating expenses are expected to fluctuate as it aligns expenses with revenue levels in response to market conditions [143]. - Selling, general and administrative expenses for the three months ended March 31, 2025, were $22,437,000, which is 13.6% of revenue, down from $22,964,000 or 15.3% in 2024 [157]. - Selling, general and administrative expenses decreased by $0.5 million, or 2.3%, to $22.4 million for the three months ended March 31, 2025 [165]. Taxation and Regulatory Impact - The effective tax rate is influenced by the geographic distribution of profits and losses, tax laws, and the effectiveness of tax planning strategies [149]. - The Company is monitoring the potential impact of the Bermuda Corporate Income Tax Act 2023, which may impose a 15% corporate income tax starting from tax years beginning on or after January 1, 2025 [151]. - The Company is evaluating the impact of the U.S. Chips and Science Act of 2022, which provides a 25% manufacturing investment credit for semiconductor manufacturing investments [150]. - The Company recorded a valuation allowance against deferred tax assets if it is more likely than not that a portion will not be realized, based on historical profitability and future taxable income estimates [149]. Cash Flow and Liquidity - As of March 31, 2025, the company had $169.6 million in cash, cash equivalents, and restricted cash, compared to $175.5 million as of June 30, 2024 [186]. - Net cash provided by operating activities for the nine months ended March 31, 2025, was $32.5 million, an increase of $13.9 million compared to $18.6 million in the same period last year [187]. - Cash used in investing activities decreased by $6.4 million for the nine months ended March 31, 2025, primarily due to fewer purchases of property and equipment compared to the previous year [190]. - The company anticipates that its current cash and cash equivalents will be sufficient to meet its cash needs for at least the next twelve months, but may require additional capital in the long term due to changing business conditions [185]. Market Conditions and Risks - The company’s revenue is significantly affected by the PC market, which has experienced a modest global decline, impacting revenue from products such as notebooks and motherboards [131]. - The decrease in license and development services was related to the completion of a 24-month engineering and development services agreement during the three months ended March 31, 2025 [159]. - No material changes in market risks were reported compared to the previous disclosures in the Annual Report for the year ended June 30, 2024 [195]. - Recent accounting pronouncements and their expected effects on operations and financial condition are detailed in the Quarterly Report on Form 10-Q [194].

Financial Data and Key Metrics Changes - Revenue for fiscal Q3 was $164.6 million, representing a 9.7% year-over-year increase but a 4.9% sequential decline [6][21] - Non-GAAP gross margin was 22.5%, down from 24.2% in the previous quarter and 25.2% a year ago [21] - Non-GAAP EPS was a loss of $0.10, compared to a loss of $0.09 in the prior quarter and a loss of $0.04 a year ago [22] Business Segment Data and Key Metrics Changes - Computing segment revenue increased nearly 15% year-over-year and 3.6% sequentially, accounting for 47.9% of total revenue [10][12] - Consumer segment revenue decreased 9% year-over-year and 4.9% sequentially, representing 13% of total revenue [13] - Communications segment revenue was up 5.8% year-over-year but down 14.4% sequentially, making up 17.2% of total revenue [15] - Power Supply and Industrial segment revenue increased 32.4% year-over-year but declined 6.2% sequentially, accounting for 19.9% of total revenue [16] Market Data and Key Metrics Changes - The company noted robust demand for graphics and AI accelerated cards, particularly driven by a key customer scaling their next-generation platform [11] - The U.S. and Korea are expected to see growth in smartphone customers, while sales from China are anticipated to slow [15] Company Strategy and Development Direction - The company aims to transform from a component supplier to a total solutions provider, leveraging customer relationships to expand market share and increase bond content [9][19] - The focus remains on executing the strategy and delivering sustained value for stakeholders despite near-term uncertainties [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted a dynamic landscape with macroeconomic, geopolitical, and trade-related uncertainties impacting visibility for the second half of 2025 [9] - The company expects low to mid-single-digit sequential revenue growth for June, driven by strength in Computing and Consumer segments [19] Other Important Information - Operating cash flow for the quarter was $7.4 million, down from $14.1 million in the prior quarter [23] - The company completed the quarter with a cash balance of $169.4 million, down from $182.6 million at the end of the last quarter [24] Q&A Session Summary Question: Can you quantify the magnitude of the pull-ins on the PC side and discuss graphics card success? - Management noted increased demand due to customers taking advantage of tariff situations, with an estimated $6 million of revenue attributed to notebook increases [29] Question: What is the tariff impact on the company? - Direct exposure to tariffs is minimal due to limited U.S. shipments, but indirect impacts on overall demand remain uncertain [32] Question: How is the margin guidance for June despite the fall-off in licensing revenue? - Margin guidance is based on a better product mix and higher factory utilization, contributing to a sequential margin rebound [34][36] Question: Can you provide an update on cash flow dynamics and CapEx for the year? - Cash flow is expected to remain stable, targeting $40 million to $50 million for the year, with CapEx for June projected at $12 million to $14 million [45] Question: What is the pricing environment and competitive landscape? - ASP erosion is tracking historical trends, with increased competition prompting the company to roll out new products to reset ASP [49]

Alpha and Omega Semiconductor (AOSL) Q3 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Steven Pelayo - Managing DirectorStephen Chang - CEO & DirectorYifan Liang - CFO & Corporate SecretaryJeremy Kwan - Associate Vice President - Equity Research Conference Call Participants David Williams - Equity Research Analyst Operator Good afternoon. Thank you for attending today's Alpha and Omega Semiconductor Fiscal Q3 twenty twenty five Earnings Call. My name is Cole, and I'll be the moderator for ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $164.6 million, representing a 9.7% increase year over year but a 4.9% decline sequentially [6][19] - Non-GAAP gross margin was 22.5%, down from 24.2% in the previous quarter and 25.2% a year ago [20] - Non-GAAP EPS was a loss of $0.10, compared to a loss of $0.09 in the prior quarter and a loss of $0.04 a year ago [21] - Operating cash flow was $7.4 million, down from $14.1 million in the prior quarter and $28.2 million a year ago [22] Business Segment Data and Key Metrics Changes - Computing segment revenue increased 14.8% year over year and 3.6% sequentially, accounting for 47.9% of total revenue [9][12] - Consumer segment revenue decreased 9% year over year and 4.9% sequentially, representing 13% of total revenue [12] - Communications segment revenue was up 5.8% year over year but down 14.4% sequentially, making up 17.2% of total revenue [14] - Power Supply and Industrial segment revenue increased 32.4% year over year but decreased 6.2% sequentially, accounting for 19.9% of total revenue [15] Market Data and Key Metrics Changes - The company noted robust demand for graphics and AI accelerated cards, particularly driven by a key customer scaling their next-generation platform [10] - The company anticipates continued growth in the Computing segment, with expectations of mid-single-digit sequential growth and over 15% year-over-year growth for June [12][17] - The company expects flattish sequential growth in the Communications segment, with growth from U.S. and Korean smartphone customers offset by slower sales from China [14] Company Strategy and Development Direction - The company aims to transform from a component supplier to a total solutions provider, leveraging customer relationships to expand market share and increase bond content [7][18] - The company is focusing on new market expansion, market share gains, and increased bond content to drive revenue growth in 2025 [18] Management's Comments on Operating Environment and Future Outlook - Management highlighted a dynamic landscape with macroeconomic, geopolitical, and trade-related uncertainties impacting visibility for the second half of 2025 [7] - The company is closely monitoring developments and collaborating with customers to minimize disruptions in the supply chain [17] - Management expects low to mid-single-digit sequential revenue growth for June, despite the discontinuation of licensing revenue [17] Other Important Information - The company completed the quarter with a cash balance of $169.4 million, down from $182.6 million at the end of the previous quarter [23] - CapEx for the quarter was $8.1 million, with expectations for June ranging from $12 million to $14 million [24] Q&A Session Summary Question: Can you quantify the magnitude of the pull-ins on the PC side and discuss graphics card success? - Management noted increased demand due to customers taking advantage of tariff situations, with an estimated $6 million of revenue increase attributed to notebook shipments [28] Question: What is the tariff impact on the company? - Management indicated minimal direct exposure to tariffs due to limited U.S. shipments, while indirect impacts on overall demand remain uncertain [32] Question: How is the margin guidance for June despite the fall-off in licensing revenue? - Management attributed the margin guidance to a better product mix and higher factory utilization [34] Question: What is the current utilization rate and capacity at the JV? - Internal utilization is around 80% to 90%, with additional external capacities available to support business growth [38] Question: Can you provide an update on the pricing environment and competitive landscape? - Management noted ASP erosion tracking historical trends, with increased competition prompting a focus on new product rollouts to reset ASP [46]

Revenue Performance - Revenue for the fiscal third quarter of 2025 was $164.6 million, a decrease of 4.9% from the prior quarter and an increase of 9.7% year-over-year[10]. - The company expects revenue for the fiscal fourth quarter of 2025 to be approximately $170 million, plus or minus $10 million[11]. - Revenue for the three months ended March 31, 2025, was $164.635 million, a decrease of 4.8% compared to $173.156 million for the previous quarter[17]. Gross Margin - GAAP gross margin was 21.4%, down from 23.1% in the prior quarter and down from 23.7% in the same quarter last year[10]. - Non-GAAP gross margin was 22.5%, down from 24.2% in the prior quarter and down from 25.2% in the same quarter last year[10]. - Gross profit for the three months ended March 31, 2025, was $35.177 million, resulting in a gross margin of 21.4%, down from 23.1% in the previous quarter[17]. - GAAP gross profit for the three months ended March 31, 2025, was $35,177 million, a decrease from $40,011 million in the previous quarter[24]. - Non-GAAP gross profit for the same period was $37,036 million, down from $41,945 million quarter-over-quarter[24]. - Estimated non-GAAP gross margin for Q4 ending June 30, 2025, is projected at 24.0%, up from a GAAP gross margin of 22.9%[27]. Operating Loss - GAAP operating loss was $10.7 million, compared to a loss of $5.9 million in the prior quarter and a loss of $10.5 million in the same quarter last year[10]. - Non-GAAP operating loss was $2.7 million, compared to an operating income of $3.0 million in the prior quarter and a loss of $1.1 million in the same quarter last year[10]. - Operating loss for the three months ended March 31, 2025, was $(10.658) million, compared to $(5.908) million in the previous quarter[17]. - GAAP operating loss for the three months ended March 31, 2025, was $(10,658) million, compared to $(5,908) million in the previous quarter[24]. - Non-GAAP operating income (loss) for the three months ended March 31, 2025, was $(2,656) million, a decline from $2,967 million in the previous quarter[24]. Net Loss - Net loss for the three months ended March 31, 2025, was $(10.807) million, compared to $(6.614) million in the previous quarter, with a net loss per share of $(0.37)[17]. - GAAP net loss for the three months ended March 31, 2025, was $(10,807) million, compared to $(6,614) million in the previous quarter[24]. - Non-GAAP net income (loss) for the three months ended March 31, 2025, was $(2,902) million, down from $2,739 million in the previous quarter[24]. - GAAP diluted net loss per share for the three months ended March 31, 2025, was $(0.37), compared to $(0.21) in the previous quarter[25]. - Non-GAAP diluted net income (loss) per share for the same period was $(0.10), a decrease from $0.09 in the previous quarter[25]. Cash Flow and Liquidity - Consolidated cash flows provided by operating activities were $7.4 million, down from $14.1 million in the prior quarter[10]. - The company closed the quarter with $169.4 million in cash and cash equivalents[10]. - Cash and cash equivalents at the end of the period were $169.359 million, down from $175.127 million at the end of the previous quarter[19]. - Net cash provided by operating activities for the nine months ended March 31, 2025, was $32.494 million, an increase from $18.591 million in the same period last year[21]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $(5.974) million for the nine months ended March 31, 2025[21]. Assets and Liabilities - Total assets as of March 31, 2025, were $1.116 billion, a decrease from $1.145 billion as of June 30, 2024[19]. - Total liabilities as of March 31, 2025, were $230.077 million, down from $253.406 million as of June 30, 2024[19]. Research and Development Expenses - Research and development expenses for the three months ended March 31, 2025, were $23.398 million, slightly down from $23.968 million in the previous quarter[17]. - Non-GAAP operating expenses for Q4 are expected to be $40.2 million, after accounting for estimated stock-based compensation and legal costs related to government investigations[27].

Product Development and Innovation - The company introduced over 100 new products in the fiscal year ended June 30, 2024, contributing to a total portfolio of approximately 2,700 products[136] - As of December 31, 2024, the company held 940 patents and 58 patent applications in the U.S., along with 1,050 foreign patents, reflecting its strong R&D capabilities[136] - The company is diversifying its product portfolio to reduce reliance on the PC market and improve gross margins through cost control measures[142] - The average selling prices of established products are expected to decline, but the company aims to offset this by introducing new higher-value products[144] - Research and development expenses are critical for long-term success, with ongoing investments in new technologies and products[155] Financial Performance - Revenue for the three months ended December 31, 2024, was $173,156 thousand, compared to $165,285 thousand for the same period in 2023, representing a growth of 5.3%[166] - Total revenue for the three months ended December 31, 2024, was $173.2 million, an increase of $7.9 million, or 4.8%, compared to $165.3 million for the same quarter last year[169] - Total revenue for the six months ended December 31, 2024, was $355.0 million, an increase of $9.1 million, or 2.6%, compared to $345.9 million for the same period last year[170] Cost and Expenses - Cost of goods sold for the three months ended December 31, 2024, was $133,145 thousand, which is 76.9% of revenue, compared to 73.4% in 2023[166] - Gross profit for the three months ended December 31, 2024, was $40,011 thousand, down from $44,001 thousand in 2023, resulting in a gross margin decrease from 26.6% to 23.1%[166] - Operating income for the three months ended December 31, 2024, was a loss of $5,908 thousand, compared to a loss of $1,134 thousand in 2023[166] - Net income for the three months ended December 31, 2024, was a loss of $6,614 thousand, compared to a loss of $2,923 thousand in 2023, indicating a worsening financial position[166] - Selling, general and administrative expenses for the three months ended December 31, 2024, were $21,951 thousand, down from $22,216 thousand in 2023, representing 12.7% of revenue[166] Research and Development Expenses - Research and development expenses for the three months ended December 31, 2024, were $23,968 thousand, slightly up from $22,919 thousand in 2023, maintaining a consistent percentage of revenue at 13.8%[166] - Research and development expenses for the three months ended December 31, 2024, were $24.0 million, an increase of $1.0 million, or 4.6%, compared to $22.9 million for the same quarter last year[173] Tax and Regulatory Considerations - The effective tax rate for the three months ended December 31, 2024, was 0.7%, compared to 0.5% in 2023, reflecting changes in income tax expense[166] - The Company is monitoring the potential impact of the Corporate Income Tax Act 2023, which may impose a 15% corporate income tax starting in 2025 for companies with annual revenue exceeding €750 million[161] - The Company is evaluating the impact of the Chips Act, which provides a 25% manufacturing investment credit for semiconductor manufacturing investments[160] - Income tax expense for the three months ended December 31, 2024, was approximately $1.2 million, an increase of $348, or 38.9%, from $894,000 in the same period of 2023[181] - The effective tax rate for the three months ended December 31, 2024, was (22.1)%, compared to (41.2)% for the same period in 2023, primarily due to changes in the mix of earnings[181] Cash Flow and Liquidity - The company had $182.8 million in cash, cash equivalents, and restricted cash as of December 31, 2024, an increase from $175.5 million as of June 30, 2024[196] - Net cash provided by operating activities for the six months ended December 31, 2024, was $25.1 million, compared to a net cash used of $9.6 million in the same period last year[197] - Cash used in investing activities decreased by $7.3 million to $14.1 million for the six months ended December 31, 2024, compared to $21.4 million in the same period of 2023[200] - The company anticipates that current cash and cash equivalents will be sufficient to meet anticipated cash needs for at least the next twelve months[195] Joint Venture and Investments - The joint venture company received an investment agreement for RMB 500 million ($68.5 million), with the first installment of RMB 40 million ($5.5 million) received on December 31, 2024[139] - The company has been reducing its ownership in the joint venture to enhance its capital-raising flexibility, with ownership decreasing to approximately 39.2% after the recent investment[140] Market Conditions and Risks - Revenue is significantly impacted by the PC market, which has experienced a modest global decline, affecting the company's sales of products like notebooks and motherboards[141] - Other income for the three months ended December 31, 2024, was $663, compared to a loss of $472 in the same quarter last year, primarily due to a decrease in foreign currency exchange loss[177] - Interest income for the three months ended December 31, 2024, was $1.1 million, a decrease of $0.2 million, or 14.2%, compared to $1.3 million for the same quarter last year[179] - Interest expenses decreased by $348, or 33.2%, to $701,000 for the three months ended December 31, 2024, compared to $1,049,000 in the same period last year[180] - No material changes in market risks were reported compared to the previous disclosures in the Annual Report for the year ended June 30, 2024[206]