Core Viewpoint - AOSemi has launched the new AOZ17517QI series 60A electronic fuse, designed for optimizing server power supplies, featuring industry-leading performance and a low on-resistance of 0.65mΩ [5][6]. Group 1: Product Overview - The AOZ17517QI series electronic fuse is designed for 12V hot-swappable applications, specifically targeting the power protection needs of servers, data centers, and telecom infrastructure [6]. - The product features a compact 5mm x 5mm QFN package, enhancing system space utilization while providing efficient and reliable power management solutions [6][7]. Group 2: Technical Features - The electronic fuse continuously monitors current through an intelligent power switch, limiting current to safe levels upon detecting overload conditions, thus preventing damage to downstream loads [6][7]. - It incorporates innovative co-packaging technology, integrating high-performance control ICs with high SOA trench MOSFETs, offering superior circuit protection and power management capabilities [7]. - The device supports a wide operating voltage range of 4.5V to 20V and can withstand a maximum absolute voltage of 27V, effectively protecting against transient voltage spikes [7]. Group 3: Protection Mechanisms - The AOZ17517QI series includes multiple protection features such as overcurrent protection (OCP), short-circuit protection (SCP), undervoltage lockout (UVLO), overvoltage clamp (OVP), thermal shutdown protection (TSD), adjustable external soft start, and SOA protection during startup [7]. - The product is particularly suitable for high-reliability systems and telecom applications, where input bus protection is critical, and it replaces traditional hot-swap controllers combined with discrete FETs with advanced eFuse technology [7].

Financial Performance - Alpha and Omega Semiconductor (AOSL) reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and compared to earnings of $0.09 per share a year ago, representing an earnings surprise of +300.00% [1] - The company posted revenues of $176.48 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.81%, and compared to year-ago revenues of $161.3 million [2] Market Performance - Alpha and Omega shares have declined approximately 29.6% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $180.8 million, and for the current fiscal year, it is $0.13 on revenues of $697 million [7] Industry Outlook - The Electronics - Semiconductors industry, to which Alpha and Omega belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $176.5 million, representing a 9.4% year-over-year increase and a 7.2% sequential increase [6][16] - Non-GAAP gross margin was 24.4%, up from 22.5% in the previous quarter but down from 26.4% a year ago [17] - Non-GAAP EPS was $0.20, compared to a loss of $0.10 in the previous quarter and $0.09 a year ago [18] - Operating cash flow was negative $2.8 million, down from $7.4 million in the prior quarter [19] Business Line Data and Key Metrics Changes - Computing segment revenue increased by 29.7% year-over-year and 17.9% sequentially, accounting for 52.6% of total revenue [8] - Consumer segment revenue decreased by 5.8% year-over-year but increased by 23.9% sequentially, representing 15.1% of total revenue [10] - Communication segment revenue was down 1.7% year-over-year and 5.2% sequentially, making up 15.2% of total revenue [11] - Power supply and industrial segment revenue was up 7.3% year-over-year but down 9.8% sequentially, accounting for 16.8% of total revenue [12] Market Data and Key Metrics Changes - Strong demand in computing was driven by tariff-related pull-ins for PCs and growth in AI and graphics applications [5][6] - The consumer segment saw growth in wearables and gaming, while the communication segment faced challenges due to a decline in smartphone demand in China [10][11] - The power supply and industrial segment experienced weaker demand from power tools and e-mobility [12] Company Strategy and Development Direction - The company aims to transition from a component supplier to a total solutions provider, leveraging customer relationships to expand market share [7][14] - The strategic sale of 20.3% of its joint venture in Chongqing, China, for $150 million is expected to provide additional capital for technology investments and acquisitions [7][21] - The company is focused on execution, innovation, and delivering sustainable value amid a fluid geopolitical and macroeconomic environment [14] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainties regarding the macro economy and geopolitics but expressed confidence in the company's ability to execute and grow [7][14] - The company anticipates a digestion period in the computing segment as initial demand for AI programs is absorbed, with expectations for low single-digit sequential growth in the next quarter [9] - Despite challenges, management remains optimistic about growth opportunities in AI, graphics, and other segments [14] Other Important Information - The company recorded an impairment charge of $76.8 million related to the equity investment in the Chongqing joint venture [22] - CapEx for the quarter was $14.3 million, with expectations for $11 million to $13 million in the next quarter [20][21] Q&A Session Summary Question: Can you provide more color on the computing segment and the digestion mentioned? - Management indicated that the digestion is related to initial shipments of a new AI program and that additional programs are in design to support future growth [25][27] Question: How much did AI contribute to growth this quarter? - AI and graphics together account for approximately 25% of the computing segment [30][31] Question: What are the expectations for gross margins moving forward? - Management expects gross margins to remain flat in the next quarter, reflecting a similar product mix and production level [32][36] Question: How will the $150 million cash inflow be prioritized? - The company plans to invest in business growth, technology, and potential M&A opportunities, with shareholder returns also being evaluated [39][41] Question: How does the company view internal capacity versus third-party foundries? - Management stated that they will continue to evaluate both internal production and third-party sourcing based on needs, emphasizing flexibility [45][47] Question: How are customers reacting to demand and tariffs? - Demand varies by market, with the computing segment seeing more caution due to tariffs, while AI and graphics remain strong [52][53]

[Introduction](index=1&type=section&id=1.%20Introduction) This section introduces Alpha and Omega Semiconductor (AOS) and announces its financial results for fiscal Q4 and full year 2025 [Report Announcement](index=1&type=section&id=1.1.%20Report%20Announcement) **Alpha and Omega Semiconductor Limited (AOS)** reported financial results for the fiscal fourth quarter and fiscal year ended **June 30, 2025**[1](index=1&type=chunk) [About Alpha and Omega Semiconductor](index=4&type=section&id=1.2.%20About%20Alpha%20and%20Omega%20Semiconductor) AOS is a global supplier of power semiconductor devices, including discrete power devices, wide bandgap power devices, power management ICs, and modules, leveraging integrated technology for high-performance solutions - **AOS** designs, develops, and supplies a broad range of discrete power devices, wide bandgap power devices, power management ICs, and modules[19](index=19&type=chunk) - The company's product portfolio includes **Power MOSFET, SiC, IGBT, IPM, TVS, HV Gate Drivers, Power IC, and Digital Power products**[19](index=19&type=chunk) - **AOS** differentiates itself by integrating its semiconductor process technology, product design, and advanced packaging know-how to develop high-performance power management solutions[19](index=19&type=chunk) - Target applications include personal computers, graphics cards, data centers, AI servers, smartphones, consumer and industrial motor controls, TVs, lighting, automotive electronics, and power supply units[19](index=19&type=chunk) [Fiscal Fourth Quarter 2025 Financial Performance](index=1&type=section&id=2.%20Fiscal%20Fourth%20Quarter%202025%20Financial%20Performance) AOS's fiscal Q4 2025 saw revenue growth to **$176.5 million**, with improved sequential gross margins, a higher GAAP operating loss, but a positive non-GAAP operating income and EPS [GAAP Quarterly Financial Comparison](index=1&type=section&id=2.1.%20GAAP%20Quarterly%20Financial%20Comparison) In Q4 Fiscal Year 2025, AOS reported revenue of $176.5 million, with a GAAP gross margin of 23.4%, recording a GAAP operating loss of $11.6 million and a net loss of $77.1 million, resulting in a diluted net loss per share of $2.58 GAAP Quarterly Financial Comparison | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Revenue | $176.5M | $164.6M | $161.3M | | Gross Margin | 23.4% | 21.4% | 25.7% | | Operating Loss | $(11.6)M | $(10.7)M | $(1.5)M | | Net Loss | $(77.1)M | $(10.8)M | $(2.7)M | | Net Loss Per Share - Diluted | $(2.58) | $(0.37) | $(0.09) | [Non-GAAP Quarterly Financial Comparison](index=1&type=section&id=2.2.%20Non-GAAP%20Quarterly%20Financial%20Comparison) For Q4 Fiscal Year 2025, AOS's non-GAAP results showed revenue of $176.5 million and a non-GAAP gross margin of 24.4%, achieving a non-GAAP operating income of $2.3 million and a non-GAAP net income of $0.7 million, leading to a diluted non-GAAP net income per share of $0.02 Non-GAAP Quarterly Financial Comparison | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Revenue | $176.5M | $164.6M | $161.3M | | Non-GAAP Gross Margin | 24.4% | 22.5% | 26.4% | | Non-GAAP Operating Income (Loss) | $2.3M | $(2.7)M | $3.2M | | Non-GAAP Net Income (Loss) | $0.7M | $(2.9)M | $2.6M | | Non-GAAP Net Income (Loss) Per Share - Diluted | $0.02 | $(0.10) | $0.09 | [Key Financial Highlights (Q4 2025)](index=2&type=section&id=2.3.%20Key%20Financial%20Highlights%20%28Q4%202025%29) AOS's fiscal Q4 2025 revenue reached **$176.5 million**, showing growth, with GAAP gross margin at **23.4%** and non-GAAP at **24.4%**, leading to a substantial GAAP net loss but positive non-GAAP EPS - **Revenue was $176.5 million**, an increase of **9.4% year-over-year** and **7.2% quarter-over-quarter**[11](index=11&type=chunk) - **GAAP gross margin was 23.4%**, down from **25.7% year-over-year** but up from **21.4% quarter-over-quarter**[11](index=11&type=chunk) - **Non-GAAP gross margin was 24.4%**, down from **26.4% year-over-year** but up from **22.5% quarter-over-quarter**[11](index=11&type=chunk) - **GAAP operating loss was $11.6 million**, increasing from **$1.5 million year-over-year** and **$10.7 million quarter-over-quarter**[11](index=11&type=chunk) - **Non-GAAP operating income was $2.3 million**, compared to **$3.2 million year-over-year** and an operating loss of **$2.7 million quarter-over-quarter**[11](index=11&type=chunk) - **GAAP net loss per share was $2.58**, compared to **$0.37** in the prior quarter and **$0.09 year-over-year**[11](index=11&type=chunk) - **Non-GAAP earnings per share was $0.02**, compared to a **$0.10 net loss per share** in the prior quarter and **$0.09 net earnings per share year-over-year**[11](index=11&type=chunk) [Management Commentary on Q4 Results](index=3&type=section&id=2.4.%20Management%20Commentary%20on%20Q4%20Results) CEO Stephen Chang highlighted that Q4 results met the high-end of guidance, driven by strong performance in Computing, with record A.I. and graphics revenue, and PC-related pull-ins due to tariff uncertainties, alongside continued momentum in wearables - Fiscal **Q4 results were at the high-end of guidance**, driven by strength in Computing, with **record A.I. and graphics revenue**[12](index=12&type=chunk) - **PC-related pull-ins**, a result of tariff uncertainties, also contributed to Q4 performance[12](index=12&type=chunk) - **Continued momentum in wearables** further supported the strong results[12](index=12&type=chunk) - The CEO underscored the company's ability to execute in a dynamic environment and the growing impact of its total solutions strategy across high-performance applications[12](index=12&type=chunk) [Fiscal Year 2025 Financial Performance](index=2&type=section&id=3.%20Fiscal%20Year%202025%20Financial%20Performance) AOS's fiscal year 2025 saw revenue growth to **$696.2 million**, but a significant increase in GAAP operating and net losses, while non-GAAP metrics remained positive but declined [GAAP Annual Financial Comparison](index=2&type=section&id=3.1.%20GAAP%20Annual%20Financial%20Comparison) For the fiscal year ended June 30, 2025, AOS reported revenue of $696.2 million, an increase from the prior year, but GAAP gross margin declined to 23.1%, and the company experienced a significant increase in operating loss to $28.4 million and net loss to $97.0 million, resulting in a diluted net loss per share of $3.30 GAAP Annual Financial Comparison | Metric | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $696.2M | $657.3M | | Gross Margin | 23.1% | 26.2% | | Operating Loss | $(28.4)M | $(3.8)M | | Net Loss | $(97.0)M | $(11.1)M | | Net Loss Per Share - Diluted | $(3.30) | $(0.39) | [Non-GAAP Annual Financial Comparison](index=2&type=section&id=3.2.%20Non-GAAP%20Annual%20Financial%20Comparison) In fiscal year 2025, AOS's non-GAAP revenue was $696.2 million, with a non-GAAP gross margin of 24.2% and non-GAAP operating income of $10.4 million, leading to a non-GAAP net income of $7.0 million and diluted non-GAAP net income per share of $0.22 Non-GAAP Annual Financial Comparison | Metric | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $696.2M | $657.3M | | Non-GAAP Gross Margin | 24.2% | 27.2% | | Non-GAAP Operating Income | $10.4M | $21.7M | | Non-GAAP Net Income | $7.0M | $18.5M | | Non-GAAP Net Income Per Share - Diluted | $0.22 | $0.62 | [Business Outlook for Fiscal Q1 2026](index=3&type=section&id=4.%20Business%20Outlook%20for%20Fiscal%20Q1%202026) AOS projects continued revenue growth for Fiscal Q1 2026, driven by seasonal strength and stable demand, with specific financial guidance provided for key metrics [Management Outlook](index=3&type=section&id=4.1.%20Management%20Outlook) Management anticipates continued growth in the September quarter, driven by seasonal strength in Communications and stable demand in PCs and wearables, positioning AOS for long-term growth despite macroeconomic uncertainties - Anticipates **continued growth in the September quarter**, led by seasonal strength in Communications and steady demand in PCs and wearables[12](index=12&type=chunk) - Despite macroeconomic and geopolitical uncertainties, **AOS is positioned for long-term growth** through **differentiated technology**, **broadening product portfolio**, and **deepening customer relationships**[12](index=12&type=chunk) [Financial Guidance](index=3&type=section&id=4.2.%20Financial%20Guidance) For Fiscal Q1 ending September 30, 2025, AOS projects revenue to be approximately $183 million, with GAAP gross margin around 23.8% and non-GAAP gross margin around 24.4%, alongside specific operating expense and tax expense ranges Financial Guidance for Fiscal Q1 Ending September 30, 2025 | Metric | Guidance for Fiscal Q1 Ending September 30, 2025 | | :--- | :--- | | Revenue | $183 million (plus or minus $10 million) | | GAAP Gross Margin | 23.8% (plus or minus 1%) | | Non-GAAP Gross Margin | 24.4% (plus or minus 1%) | | GAAP Operating Expenses | $47.5 million (plus or minus $1 million) | | Non-GAAP Operating Expenses | $41.0 million (plus or minus $1 million) | | Interest Income vs. Expense | Interest income expected to be $0.5 million higher than interest expense | | Tax Expense | $1.0 million to $1.3 million | [Consolidated Financial Statements (GAAP)](index=5&type=section&id=5.%20Consolidated%20Financial%20Statements%20%28GAAP%29) The GAAP consolidated financial statements provide detailed breakdowns of AOS's operations, balance sheet, and cash flows for fiscal year 2025, highlighting significant losses and asset changes [Condensed Consolidated Statements of Operations](index=5&type=section&id=5.1.%20Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a fiscal year 2025 revenue of $696.2 million, with a GAAP gross margin of 23.1%, and a significant operating loss of $28.4 million and net loss of $97.0 million for the year, largely impacted by an impairment of equity method investment Condensed Consolidated Statements of Operations (in thousands) | Metric | Q4 2025 (3 Months) | FY 2025 (Year) | FY 2024 (Year) | | :--- | :--- | :--- | :--- | | Revenue | $176,484 | $696,162 | $657,274 | | Cost of goods sold | $135,194 | $535,158 | $485,356 | | Gross profit | $41,290 | $161,004 | $171,918 | | Gross margin | 23.4% | 23.1% | 26.2% | | Total operating expenses | $52,908 | $189,440 | $175,674 | | Operating loss | $(11,618) | $(28,436) | $(3,756) | | Impairment of equity method investment | $(76,784) | $(76,784) | — | | Net loss | $(77,059) | $(96,976) | $(11,081) | | Diluted Net loss per common share | $(2.58) | $(3.30) | $(0.39) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=5.2.%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, AOS reported total assets of $1,032.7 million, a decrease from the prior year, primarily due to a reduction in cash and cash equivalents and equity method investment, with total liabilities also decreasing to $210.4 million and total shareholders' equity at $822.3 million Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $153,079 | $175,127 | | Accounts receivable, net | $34,772 | $12,546 | | Inventories | $189,677 | $195,750 | | Total current assets | $394,551 | $398,001 | | Property, plant and equipment, net | $314,097 | $336,619 | | Equity method investment | $279,122 | $356,039 | | Total assets | $1,032,692 | $1,145,013 | | Total current liabilities | $152,896 | $154,233 | | Total liabilities | $210,360 | $253,406 | | Total shareholders' equity | $822,332 | $891,607 | [Selected Cash Flow Information](index=7&type=section&id=5.3.%20Selected%20Cash%20Flow%20Information) For fiscal year 2025, AOS generated $29.7 million in net cash from operating activities, an increase from the prior year, but used $36.4 million in investing activities and $15.5 million in financing activities, resulting in a net decrease in cash, cash equivalents, and restricted cash of $22.0 million Selected Cash Flow Information (in thousands) | Metric | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,668 | $25,710 | | Net cash used in investing activities | $(36,441) | $(35,744) | | Net cash used in financing activities | $(15,496) | $(9,903) | | Net decrease in cash, cash equivalents and restricted cash | $(22,042) | $(20,063) | | Cash, cash equivalents and restricted cash at end of year | $153,498 | $175,540 | - **Consolidated cash flow used in operating activities was $2.8 million in Q4 2025**, compared to **$7.4 million provided in the prior quarter**[16](index=16&type=chunk) - The Company closed Q4 2025 with **$153.1 million of cash and cash equivalents**[16](index=16&type=chunk) [Non-GAAP Financial Measures and Reconciliation](index=4&type=section&id=6.%20Non-GAAP%20Financial%20Measures%20and%20Reconciliation) This section details AOS's use of non-GAAP financial measures and provides comprehensive reconciliations to their GAAP equivalents for historical periods and future outlook [Use of Non-GAAP Financial Measures](index=4&type=section&id=6.1.%20Use%20of%20Non-GAAP%20Financial%20Measures) AOS utilizes non-GAAP financial measures to supplement its GAAP consolidated financial statements, excluding specific items not indicative of core operating results to provide a clearer view for internal performance comparison and external benchmarking - **Non-GAAP measures** (gross profit, gross margin, operating expenses, operating income/loss, net income/loss, diluted EPS, EBITDAS) are used to supplement GAAP statements[18](index=18&type=chunk) - These measures **exclude items** such as share-based compensation, legal and professional fees related to government investigation, amortization of purchased intangibles, impairment of long-lived assets, and equity method investment loss/income[18](index=18&type=chunk) - The purpose is to provide useful information to management and investors by excluding items not indicative of core operating results or normal business operations, aiding in performance comparison and benchmarking[18](index=18&type=chunk) - A **detailed reconciliation of GAAP and non-GAAP measures** is provided to address limitations and ensure transparency[18](index=18&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures (Historical)](index=9&type=section&id=6.2.%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures%20%28Historical%29) The reconciliation tables detail adjustments made to GAAP figures to arrive at non-GAAP results for both quarterly and annual periods, significantly impacting gross profit, operating income, and net income, providing a different perspective on the company's underlying operational performance Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Q4 2025 | Q3 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP gross profit | $41,290 | $35,177 | $41,437 | $161,004 | $171,918 | | Share-based compensation | $1,039 | $1,047 | $294 | $4,224 | $3,434 | | Amortization of purchased intangible | $811 | $812 | $812 | $3,247 | $3,247 | | **Non-GAAP gross profit** | **$43,140** | **$37,036** | **$42,543** | **$168,475** | **$178,599** | | **Non-GAAP gross margin %** | **24.4%** | **22.5%** | **26.4%** | **24.2%** | **27.2%** | Non-GAAP Operating Income (Loss) Reconciliation (in thousands) | Metric | Q4 2025 | Q3 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP operating loss | $(11,618) | $(10,658) | $(1,499) | $(28,436) | $(3,756) | | Share-based compensation | $7,581 | $7,136 | $3,567 | $29,569 | $21,641 | | Amortization of purchased intangible | $811 | $812 | $812 | $3,247 | $3,247 | | Settlement and legal costs | $4,461 | $54 | $352 | $4,977 | $524 | | Impairment of long-lived assets | $1,045 | — | — | $1,045 | — | | **Non-GAAP operating income (loss)** | **$2,280** | **$(2,656)** | **$3,232** | **$10,402** | **$21,656** | | **Non-GAAP operating margin %** | **1.3%** | **(1.6)%** | **2.0%** | **1.5%** | **3.3%** | Non-GAAP Net Income (Loss) Reconciliation (in thousands) | Metric | Q4 2025 | Q3 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP net loss | $(77,059) | $(10,807) | $(2,732) | $(96,976) | $(11,081) | | Share-based compensation | $7,581 | $7,136 | $3,567 | $29,569 | $21,641 | | Amortization of purchased intangible | $811 | $812 | $812 | $3,247 | $3,247 | | Impairment of equity method investment | $76,784 | — | — | $76,784 | — | | Income tax effect of non-GAAP adjustments | $(12,584) | $148 | $(78) | $(12,670) | $(627) | | **Non-GAAP net income (loss)** | **$737** | **$(2,902)** | **$2,625** | **$6,997** | **$18,493** | | **Non-GAAP diluted net income (loss) per share** | **$0.02** | **$(0.10)** | **$0.09** | **$0.22** | **$0.62** | [Reconciliation of GAAP to Non-GAAP Outlook (Q1 2026)](index=11&type=section&id=6.3.%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Outlook%20%28Q1%202026%29) For the fiscal Q1 2026 outlook, AOS provides a reconciliation for gross margin and operating expenses, where non-GAAP figures are derived by adjusting GAAP numbers for estimated share-based compensation expense Reconciliation of GAAP to Non-GAAP Outlook for Fiscal Q1 Ending September 30, 2025 (in millions, except percentages) | Metric | Value | | :--- | :--- | | GAAP gross margin | 23.8% | | Estimated impact of share-based compensation expense | 0.6% | | **Non-GAAP gross margin** | **24.4%** | | GAAP operating expenses | $47.5 | | Estimated stock-based compensation expense | $(6.5) | | **Non-GAAP operating expenses** | **$41.0** | [Additional Information](index=3&type=section&id=7.%20Additional%20Information) This section provides details on the investor conference call, forward-looking statement disclaimers, and contact information for inquiries [Conference Call and Webcast](index=3&type=section&id=7.1.%20Conference%20Call%20and%20Webcast) AOS hosted an investor teleconference and live webcast on August 6, 2025, to discuss the financial results for the fiscal fourth quarter and full fiscal year ended June 30, 2025, with access details provided for the live call and webcast replay - **AOS held an investor teleconference and live webcast on August 6, 2025**, to discuss **fiscal Q4 and full fiscal year 2025 financial results**[14](index=14&type=chunk) - Access details for the live conference call (dial-in numbers and access code) and webcast (Company's investor relations website) were provided[14](index=14&type=chunk) - A webcast replay and management's prepared remarks were made available on the investor relations website[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=7.2.%20Forward-Looking%20Statements) This press release contains forward-looking statements based on management's current expectations, estimates, forecasts, and projections, which involve risks and uncertainties that could cause actual results to differ materially, and AOS disclaims any obligation to update such information - The press release includes **forward-looking statements** based on management's current expectations, estimates, forecasts, and projections[15](index=15&type=chunk) - These statements involve **risks and uncertainties** that may cause actual results to differ materially, such as the state of the semiconductor industry, decline of PC markets, and geopolitical uncertainties[15](index=15&type=chunk) - Other risks include difficulties in executing diversification strategy, changes in regulatory environment (tariffs), and the ability to introduce new products[15](index=15&type=chunk) - **AOS undertakes no duty to update** such information, except as required by applicable law[15](index=15&type=chunk) [Investor and Media Inquiries](index=4&type=section&id=7.3.%20Investor%20and%20Media%20Inquiries) Contact information for investor and media inquiries is provided through The Blueshirt Group, with specific contacts Gary Dvorchak and Steven Pelayo - Investor and media inquiries can be directed to **The Blueshirt Group**, with contacts **Gary Dvorchak and Steven Pelayo**[21](index=21&type=chunk)

Core Viewpoint - Alpha and Omega Semiconductor (AOS) has agreed to sell 20.3% of its joint venture in Chongqing, China for $150 million in cash, with the transaction expected to complete by the end of 2025. This move is aimed at reinvesting in talent, tools, and intellectual property to expand its product portfolio while maintaining its manufacturing capabilities and protecting proprietary technology [3][4]. Group 1: Company Overview - AOS, founded in 2000 and headquartered in Silicon Valley, is a semiconductor company involved in the design, wafer manufacturing, and packaging/testing of power semiconductor devices. It has R&D centers in the U.S., Taiwan, and Shanghai, with production bases in the U.S., Shanghai, and Chongqing [4][5]. - The Chongqing facility, established in April 2016, is the first 12-inch power semiconductor chip manufacturing and packaging/testing base in China and the second globally. The total investment for this project was $1 billion [4][5]. Group 2: Joint Venture and Production Capacity - The Chongqing joint venture, which AOS holds a 39.2% stake in, has a monthly production capacity of approximately 10,000 12-inch wafers and nearly 400 million power devices for packaging and testing. Future plans include increasing the capacity to 50,000 wafers and 1.25 billion devices per month within 3-5 years [6][7]. - The facility has developed advanced manufacturing and packaging/testing technologies for power semiconductor products, including MOSFETs and IGBTs, which are widely used in consumer, industrial, and automotive applications [5][6]. Group 3: Regulatory Issues - AOS has agreed to pay $4.25 million to settle allegations of violating export regulations by shipping goods to Huawei without authorization in 2019. This settlement concludes a five-year investigation by the U.S. government, which did not result in any criminal charges [8][9]. - The company has emphasized its commitment to compliance with regulatory requirements and has strengthened its processes to ensure ongoing adherence to export control regulations [9][10].

Company Overview - Alpha and Omega Semiconductor (AOSL) is positioning itself as an emerging total solution provider in a market exceeding $70 billion[5,48] - The company aims for consistent execution to approach its target model[5,48] Market and Growth Drivers - The power semiconductor market is large and growing[6], with a total addressable market (SAM) exceeding $10 billion in growth areas[20] - Computing accounts for 40% of focused markets, followed by Consumer at 24%, Power Supply/Industrial at 18%, and Communications at 15%[25] - The company is targeting $1 billion in revenue by CY2025/2026[21,45] Financial Performance - Revenue for the December quarter of 2023 is guided at $165 million[34] - Non-GAAP EPS for the December quarter of 2023 is projected at $0.15[35] - The company's target model includes a gross margin exceeding 30% and operating expenses around 20%[45] Joint Venture - The Chongqing JV has a total capitalization of $428 million, with AOS holding a 42.2% equity interest[41] - A sale of 2.1% JV equity interest was completed for $16.9 million, implying a valuation exceeding $800 million for the JV[42]

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][19] - Non-GAAP gross margin was 22.5%, down from 24.2% in the previous quarter and 25.2% a year ago [19] - 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 [20] - Operating cash flow was $7.4 million, down from $14.1 million in the prior quarter and $28.2 million a year ago [21] Business Line 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 [8][11] - Consumer segment revenue decreased 9% year-over-year and 4.9% sequentially, representing 13% of total revenue [11][12] - Communications segment revenue was up 5.8% year-over-year but down 14.4% sequentially, making up 17.2% of total revenue [12][13] - Power Supply and Industrial segment revenue increased 32.4% year-over-year but declined 6.2% sequentially, accounting for 19.9% of total revenue [14][15] Market Data and Key Metrics Changes - The Computing segment saw robust demand for graphics and AI accelerated cards, driven by a key customer scaling their next-generation platform [9] - The Consumer segment is expected to see over 25% sequential growth in June, driven by gaming and home appliances [12] - Communications segment growth is anticipated to be flattish sequentially, with growth from U.S. and Korean smartphone customers offset by slower sales from China [13] 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 [7][8] - The focus remains on executing the strategy and delivering sustained value for stakeholders despite near-term uncertainties [17][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][17] - The company expects low to mid-single-digit sequential revenue growth in June, driven by strength in Computing and Consumer segments [17][24] 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 [22] - CapEx for the quarter was $8.1 million, with expectations for June ranging from $12 million to $14 million [23][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 tariff situations, with an estimated $6 million of revenue increase attributed to notebook shipments [28] 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 [35] Question: Can you provide an update on the China JV and wafer requirements? - The China JV accounts for about 20% of total supply, with minimal tariff impact [38] Question: What are the cash flow dynamics expected throughout the year? - Cash flow is expected to remain stable, targeting 6% to 8% of revenue, with CapEx projected around $40 million to $50 million for the year [42][45] Question: What is the pricing environment and competitive landscape? - ASP erosion is tracking historical trends, with increased competition from all players [48]