Part I [Business](index=5&type=section&id=Item%201.%20Business) AOS designs and supplies a broad portfolio of power semiconductors, utilizing a hybrid manufacturing model and diversifying beyond its core PC market [Overview and Strategy](index=5&type=section&id=Overview%20and%20Strategy) AOS designs power semiconductors, diversifies beyond PC, uses a hybrid manufacturing model, and deconsolidated its Chongqing JV - The company designs, develops, and supplies a broad portfolio of approximately **2,600 power semiconductor products**[9](index=9&type=chunk) - As of June 30, 2023, AOS holds an extensive intellectual property portfolio, including **918 U.S. patents** and **980 foreign patents**[9](index=9&type=chunk)[61](index=61&type=chunk) - The company's business model utilizes both an in-house **8-inch wafer fabrication facility in Oregon** and third-party foundries to balance proprietary technology development with cost-effective high-volume manufacturing[11](index=11&type=chunk)[21](index=21&type=chunk) - AOS deconsolidated its Chongqing JV Company in December 2021 and now holds a **42.2% equity interest**, accounting for it using the equity method; a wafer production capacity guarantee is in place with the JV[13](index=13&type=chunk)[26](index=26&type=chunk) - While the PC market remains its largest end-market, the company is actively diversifying into consumer, communications, and industrial sectors to mitigate market concentration risk[22](index=22&type=chunk) [Products and New Introductions](index=8&type=section&id=Products%20and%20New%20Introductions) AOS's product portfolio includes power discretes and ICs, with new introductions in FY2023 like SiC MOSFETs and USB Type-C EPR switches - The company's product portfolio consists of two major categories: **power discretes** (MOSFETs, IGBTs, SiC products) and **power ICs** (DrMOS, EZBuck, smart load switches)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - During fiscal year 2023, new product introductions included **600V αMOS7™ Super Junction MOSFETs** for high-density applications like servers and EV charging[33](index=33&type=chunk) - The company launched a new **650V and 750V SiC MOSFET platform** targeting industrial applications (solar inverters, motor drives) and automotive systems (on-board chargers, traction inverters)[36](index=36&type=chunk) - New power ICs were introduced to support the **USB Type-C Extended Power Range (EPR) standard**, enabling power delivery up to **140W** for high-performance laptops and other devices[34](index=34&type=chunk)[35](index=35&type=chunk) [Sales, Customers, and Competition](index=10&type=section&id=Sales%2C%20Customers%2C%20and%20Competition) AOS primarily sells through distributors, with two accounting for over half of revenue, and faces intense competition from major semiconductor suppliers Revenue Concentration from Major Distributors (FY2021-2023) | Distributor | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | WPG Holdings Limited | 35.6% | 39.7% | 35.4% | | Promate Electronic Co. Ltd. | 21.6% | 24.6% | 28.7% | | **Total** | **57.2%** | **64.3%** | **64.1%** | - Key competitors in power discretes include Infineon, ON Semiconductor, and STMicroelectronics, while power IC competitors include Monolithic Power Systems and Texas Instruments[44](index=44&type=chunk)[123](index=123&type=chunk) [Operations and R&D](index=12&type=section&id=Operations%20and%20R%26D) AOS utilizes a hybrid manufacturing model for wafer fabrication and packaging, with R&D expenditures increasing to $88.1 million in FY2023 Research and Development Expenditures (FY2021-2023) | Fiscal Year | R&D Expense (in millions) | | :--- | :--- | | 2023 | $88.1 | | 2022 | $71.3 | | 2021 | $63.0 | - Wafer fabrication is split between the in-house Oregon Fab and third-party foundries; HHGrace, the main third-party foundry, manufactured **9.6% of wafers** used in FY2023[52](index=52&type=chunk) - The company's in-house packaging and testing facilities in Shanghai have a combined capacity of over **600 million parts per month**[55](index=55&type=chunk) [Human Capital and Other Matters](index=14&type=section&id=Human%20Capital%20and%20Other%20Matters) AOS had 2,468 employees globally as of June 30, 2023, and adheres to various environmental and export control regulations - As of June 30, 2023, the company had **2,468 employees globally**, with **781 in the U.S.** and **1,502 in China**[64](index=64&type=chunk) - The company is subject to and has implemented procedures to comply with export control laws, environmental regulations (ISO 14001, RoHS), and conflict minerals rules[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) [Risk Factors](index=17&type=page&id=Item%201A.%20Risk%20Factors) The company faces significant risks from semiconductor cyclicality, PC market reliance, geopolitical tensions, JV control, and distributor concentration - The business is exposed to the cyclicality of the semiconductor industry and macroeconomic downturns, which have negatively affected financial performance in 2023 due to industry-wide inventory correction[91](index=91&type=chunk) - A significant portion of revenue (**35.2% in FY2023**) is derived from the PC market, and a continued decline in this market could materially harm operating results[92](index=92&type=chunk) - Geopolitical and economic conflicts between the U.S. and China, where the company has significant operations, could disrupt business, increase compliance costs, and reduce demand[100](index=100&type=chunk) - Having relinquished control of the Chongqing JV, the company faces risks of reduced manufacturing capacity allocation and less favorable pricing, as it no longer has a controlling interest[101](index=101&type=chunk)[102](index=102&type=chunk) - The company relies heavily on two distributors, WPG and Promate, which collectively accounted for **57.2% of revenue in FY2023**, creating significant concentration risk[132](index=132&type=chunk) - An ongoing Department of Justice (DOJ) investigation into the company's compliance with export control regulations related to Huawei presents legal and financial risks, with an unpredictable outcome[159](index=159&type=chunk)[160](index=160&type=chunk) [Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - The company reports no unresolved staff comments from the SEC[224](index=224&type=chunk) [Properties](index=41&type=section&id=Item%202.%20Properties) The company's principal properties include R&D, wafer fabrication, and packaging/testing facilities in California, Oregon, and Shanghai Principal Properties | Location | Square Footage | Primary Use | | :--- | :--- | :--- | | Sunnyvale, CA, USA | 57,000 | R&D, marketing, sales, admin | | Hillsboro, OR, USA | 252,950 | Wafer fabrication facility | | Shanghai, China (Facility 1) | 191,540 | Packaging and testing | | Shanghai, China (Facility 2) | 250,198 | Packaging and testing | [Legal Proceedings](index=42&type=section&id=Item%203.%20Legal%20Proceedings) The company is under a DOJ investigation for export control compliance related to Huawei, with shipments suspended since late 2019 - The company is under investigation by the DOJ for compliance with export control regulations related to business with Huawei[228](index=228&type=chunk) - Shipments to Huawei were suspended after December 31, 2019, at the request of the DOC, and the matter is still under review[228](index=228&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[230](index=230&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=43&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) AOSL common shares trade on NASDAQ; the company has never paid dividends and completed a $30.0 million share repurchase program in FY2023 - The company's common shares are traded on the NASDAQ Global Select Market under the symbol **AOSL**[232](index=232&type=chunk) - The company has never paid cash dividends and does not plan to in the foreseeable future[233](index=233&type=chunk) - During Q4 FY2023, the company repurchased **441,269 shares**, which terminated and completed its **$30.0 million** share repurchase program[236](index=236&type=chunk)[237](index=237&type=chunk) [Reserved](index=45&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2023 revenue decreased 11.1% to $691.3 million, gross margin contracted, and net income significantly declined due to market downturns and a prior-year one-time gain [Results of Operations](index=52&type=section&id=Results%20of%20Operations) FY2023 revenue declined 11.1% to $691.3 million, gross margin fell to 28.9%, and net income significantly decreased due to market weakness and a prior-year gain Key Financial Results (FY2021-2023) | Metric (in thousands) | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | **Revenue** | $691,321 | $777,552 | $656,902 | | **Gross Profit** | $199,536 | $268,556 | $204,543 | | *Gross Margin* | *28.9%* | *34.5%* | *31.1%* | | **Operating Income** | $22,529 | $102,038 | $64,076 | | **Net Income** | $12,364 | $453,163 | $58,116 | | **Diluted EPS** | $0.42 | $16.07 | $2.13 | Revenue by End Market (FY2023 vs. FY2022) | End Market | FY 2023 Revenue (M) | FY 2022 Revenue (M) | YoY Change | | :--- | :--- | :--- | :--- | | Computing | $243.3 | $345.9 | -29.7% | | Consumer | $180.8 | $160.8 | +12.4% | | Communication | $103.2 | $110.4 | -6.5% | | Power Supply & Industrial | $150.2 | $149.0 | +0.8% | - The decrease in FY2023 revenue was primarily driven by a **30.1% decrease in unit shipments**, partially offset by a **26.9% increase in average selling price** due to a shift in product mix[284](index=284&type=chunk) - R&D expenses increased **23.7% to $88.1 million** in FY2023, driven by higher employee compensation, depreciation, and product prototyping costs for new engineering activities[289](index=289&type=chunk)[290](index=290&type=chunk) - FY2022 net income included a one-time gain of **$399.1 million** from the deconsolidation of the JV Company[300](index=300&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and equivalents decreased to $195.6 million in FY2023, with net cash from operations significantly reduced, but liquidity is deemed sufficient Cash Flow Summary (FY2021-2023) | Cash Flow (in thousands) | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $20,473 | $218,865 | $128,744 | | Net cash used in investing activities | $(109,630) | $(130,822) | $(72,539) | | Net cash (used in) from financing activities | $(29,611) | $21,854 | $(18,991) | - Cash, cash equivalents, and restricted cash decreased to **$195.6 million** at June 30, 2023, from **$314.7 million** at June 30, 2022[321](index=321&type=chunk) - In February 2023, the company entered into a **$45 million** license and engineering service agreement for its SiC technology, receiving **$24.8 million** in upfront fees by July 2023[307](index=307&type=chunk) - As of June 30, 2023, the company had total contractual obligations of **$221.0 million**, including **$49.9 million in bank borrowings** and **$137.2 million in capital and purchase commitments**[332](index=332&type=chunk) [Critical Accounting Policies and Estimates](index=63&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant estimates for revenue recognition, inventory valuation, and income taxes, requiring complex judgments and forecasts - Revenue recognition requires significant estimates for variable consideration, including stock rotation returns and price adjustments for distributors[338](index=338&type=chunk) - Inventory valuation is a critical estimate, based on sales forecasts, historical usage, and market conditions to determine provisions for excess and obsolete inventory[345](index=345&type=chunk) - Accounting for income taxes involves complex judgments regarding deferred tax assets, valuation allowances, and uncertain tax positions across various jurisdictions[346](index=346&type=chunk)[347](index=347&type=chunk) - Share-based compensation expense is calculated using valuation models (e.g., Black-Scholes, Monte-Carlo) that require subjective assumptions like stock price volatility and expected term[352](index=352&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, variable interest rates on borrowings, and commodity price volatility for raw materials - The company has exposure to foreign currency risk as operating expenses for its overseas operations are denominated in local currencies, primarily the Chinese Yuan (RMB)[355](index=355&type=chunk) - As of June 30, 2023, the company had **$49.8 million** in outstanding loans and **$4.1 million** in financing leases subject to interest rate fluctuations; a hypothetical **10% increase in interest rates** would result in an additional **$0.3 million** in annual interest expense[356](index=356&type=chunk) - The company is subject to commodity price risk from raw materials like gold; a hypothetical **10% change in the cost of these materials** would impact net earnings by approximately **$0.6 million**[357](index=357&type=chunk) [Financial Statements and Supplementary Data](index=67&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the consolidated financial statements and supplementary data located in Part IV, Item 15 of the annual report - The company's consolidated financial statements and notes are filed as part of Item 15 of the annual report[359](index=359&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=67&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - The company reports no changes in or disagreements with its accountants on accounting and financial disclosure[359](index=359&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of June 30, 2023, due to a material weakness in IT general controls over inventory costing - Management concluded that disclosure controls and procedures were not effective as of June 30, 2023, due to a material weakness in internal control over financial reporting[360](index=360&type=chunk)[363](index=363&type=chunk) - The material weakness identified involves deficiencies in IT general controls (user access, segregation of duties) for an inventory costing system and a failure to test controls over the reliability of inventory costing[364](index=364&type=chunk) - A remediation plan is being implemented to improve IT general controls and to identify and test controls related to inventory costing[365](index=365&type=chunk)[366](index=366&type=chunk) [Other Information](index=69&type=section&id=Item%209B.%20Other%20Information) Executive Chairman Mike Chang and CFO Yifan Liang adopted Rule 10b5-1 trading plans in Q4 FY2023 for common share sales Rule 10b5-1 Trading Plans Adopted in Q4 FY2023 | Name | Title | Date of Adoption | Aggregate Shares to be Sold | | :--- | :--- | :--- | :--- | | Mike Chang | Executive Chairman | May 26, 2023 | 180,000 | | Yifan Liang | Chief Financial Officer | May 24, 2023 | 80,000 | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=69&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections.) This item is not applicable to the company - This item is not applicable to the company[373](index=373&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=70&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2023 Proxy Statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2023 Proxy Statement[376](index=376&type=chunk) [Executive Compensation](index=70&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2023 Proxy Statement - Information regarding executive compensation is incorporated by reference from the 2023 Proxy Statement[377](index=377&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=70&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership and equity compensation plans is incorporated by reference from the 2023 Proxy Statement - Information regarding security ownership and equity compensation plans is incorporated by reference from the 2023 Proxy Statement[378](index=378&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=70&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the 2023 Proxy Statement - Information regarding related party transactions and director independence is incorporated by reference from the 2023 Proxy Statement[379](index=379&type=chunk) [Principal Accountant Fees and Services](index=70&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2023 Proxy Statement - Information regarding principal accountant fees and services is incorporated by reference from the 2023 Proxy Statement[380](index=380&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=71&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section includes consolidated financial statements, schedules, and auditor reports, noting a material weakness in internal control over financial reporting - This section includes the consolidated financial statements, notes, and financial statement schedules[383](index=383&type=chunk) - The report of the independent registered public accounting firm, Baker Tilly US, LLP, states that the company did not maintain effective internal control over financial reporting as of June 30, 2023, due to a material weakness related to inventory costing controls[387](index=387&type=chunk)[388](index=388&type=chunk)

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) Q4 2023 Earnings Conference Call August 9, 2023 5:00 PM ET Company Participants Yujia Zhai - The Blueshirt Group, Investor Relations Stephen Chang - Chief Executive Officer Yifan Liang - Chief Financial Officer Conference Call Participants David Williams - Benchmark Craig Ellis - B. Riley Securities Kyle Smith - Stifel Nicolaus Yujia Zhai Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's Conference Call to discuss Fiscal 2023 Fourth ...

Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares AOSL The NASDAQ Global Select Market 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 March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC ...

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $132.6 million, down 29.8% sequentially and 34.8% year-over-year, reflecting the industry-wide inventory correction [5][16] - Non-GAAP gross margin was 25.1%, compared to 29.5% in the prior quarter and 36.7% a year ago [17] - Non-GAAP EPS was negative $0.21, compared to $0.67 last quarter and $1.34 a year ago [18] Business Line Data and Key Metrics Changes - Computing segment revenue decreased 57.7% year-over-year and 40.4% sequentially, representing 28.7% of total revenue [11] - Consumer segment revenue was slightly up year-over-year but down 5.5% sequentially, driven by strong gaming volumes [12] - Communications segment revenue declined 33.7% year-over-year and 45.4% sequentially, making up 14.5% of total revenue [13] - Power Supply and Industrial segment revenue decreased 29.6% year-over-year and 35.7% sequentially, accounting for 20% of total revenue [14] Market Data and Key Metrics Changes - End consumer demand remains weak, but there are signs of recovery in certain applications as inventory levels deplete [5][15] - The company anticipates a rebound in the second half of the year, particularly during the fall launches and holiday sales [13][15] Company Strategy and Development Direction - The company aims to grow beyond a near-term $1 billion revenue target, focusing on electrification trends and expanding into new markets such as automotive and energy generation [6][8] - Plans include deeper penetration into existing core markets and leveraging technology IP for integrated solutions [8][9] - Supply chain optimization is a priority, with exploration of additional foundry partnerships to enhance production capabilities [9] Management's Comments on Operating Environment and Future Outlook - Management believes the worst of the inventory correction is behind them, with expectations for revenue recovery in the upcoming quarters [5][15] - The company is optimistic about future demand driven by trends in electric vehicles, clean energy, and advancements in AI [7][15] Other Important Information - The company entered into a licensing and engineering service agreement worth $45 million related to Silicon Carbide technology, which will be recognized over 24 months [16][17] - Operating cash flow was $11.6 million, significantly improved from the prior quarter [18] Q&A Session Summary Question: Thoughts on gross margin recovery - Management targets a return to mid-30% gross margin but acknowledges current competitive pressures [24][25] Question: Strategy for the IC business - The company is broadening its product portfolio in ICs to address higher margin content and increase BOM [28][29] Question: Details on the Silicon Carbide licensing agreement - The agreement is expected to help enter new markets like automotive and industrial power supplies [30][31] Question: Revenue impact from the Silicon Carbide deal - $3.6 million was recognized in Q3, with expectations for $5 million to $6 million in Q4 [34][35] Question: Inventory levels and demand recovery - Most current improvements are due to inventory correction rather than underlying demand [48][49] Question: Update on manufacturing and CapEx outlook - CapEx is expected to range from $15 million to $20 million for the June quarter, with ongoing discussions regarding the CHIPS Act [62]

Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares AOSL The NASDAQ Global Select Market 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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) Q2 2023 Earnings Conference Call February 6, 2023 5:00 PM ET Company Participants Yujia Zhai - Investor Relations, The Blueshirt Group Mike Chang - Chief Executive Officer Stephen Chang - President Yifan Liang - Chief Financial Officer and Corporate Secretary Conference Call Participants David Williams - Benchmark Craig Ellis - B. Riley Securities Jeremy Kwan - Stifel Operator Good afternoon. Thank you for attending today's Alpha and Omega Semiconductor F ...

Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL) Q1 2023 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Yujia Zhai - MD, The Blueshirt Group Mike Chang - Chairman & CEO Stephen Chang - President Yifan Liang - CFO & Corporate Secretary Conference Call Participants David Williams - The Benchmark Company Craig Ellis - B. Riley Securities Jeremy Kwan - Stifel, Nicolaus & Company Operator Good afternoon, and thank you for attending today's Alpha and Omega Semiconductor Fiscal First Quar ...

Financial Performance - The company achieved a record high revenue of $777.6 million for the fiscal year 2022, representing an 18.4% growth compared to the previous fiscal year[260]. - Total revenue for fiscal year 2022 was $777.6 million, an increase of $120.7 million or 18.4% compared to $656.9 million in fiscal year 2021[297]. - Gross profit for fiscal year 2022 was $268.6 million, representing a gross margin of 34.5%, up from 31.1% in fiscal year 2021[299]. - Cost of goods sold for fiscal year 2022 was $509.0 million, an increase of $56.6 million or 12.5% compared to $452.4 million in fiscal year 2021[300]. - Net income for fiscal year 2022 was $453.2 million, compared to $56.3 million in fiscal year 2021[296]. - Operating income for fiscal year 2022 was $102.0 million, an increase from $64.1 million in fiscal year 2021[296]. - The average selling price increased by 21.0% in fiscal year 2022, partially offset by a 2.1% decrease in unit shipments[297]. - Income tax expense for fiscal year 2022 was $39.3 million, a significant increase of $35.3 million or 897.7% compared to $3.9 million in fiscal year 2021, largely due to a discrete tax expense related to the sale of equity interest in a joint venture[316]. Product Development and Portfolio - The company introduced over 130 new products in the fiscal year ended June 30, 2022, contributing to the expansion of its portfolio to approximately 2,500 products[253]. - The company is diversifying its product portfolio to reduce reliance on the PC market and improve gross margins through cost control measures[268]. - The company introduced 49 medium and high voltage MOSFET products and 69 new Power IC products during fiscal year 2022[297]. - Research and development expenses for fiscal year 2022 were $71.3 million, an increase of $8.3 million or 13.2% compared to $63.0 million in fiscal year 2021[303]. Operational Challenges - The company faced operational disruptions due to COVID-19, including the suspension of its packaging and testing facilities in Shanghai, which adversely affected revenue for the three months ended June 30, 2022[266]. - The company experienced a significant increase in demand for PC-related products due to the COVID-19 pandemic, although future demand remains uncertain[262]. Financial Management and Expenses - The company expects operating expenses as a percentage of revenue to fluctuate as it implements cost control measures in response to market conditions[280]. - Selling, general and administrative expenses for fiscal year 2022 were $95.3 million, an increase of $17.7 million or 22.9% compared to $77.5 million in fiscal year 2021[305]. - The increase in selling, general and administrative expenses was primarily due to an $8.6 million rise in employee compensation and benefits expenses and a $10.9 million increase in share-based compensation expenses[305]. - The company’s cost of goods sold includes semiconductor wafers, packaging, testing, and personnel costs, which are expected to increase with sales volume[279]. Taxation and Regulatory Environment - The effective tax rate is influenced by the geographic distribution of profits and the application of complex tax regulations[283]. - The U.S. Tax Cuts and Jobs Act reduced the corporate tax rate from 35% to 21%, impacting the company's tax liabilities[285]. - The Chips Act provides incentives for semiconductor manufacturers, including a 25% manufacturing investment credit for qualifying investments[291]. - The company is evaluating the impact of the Chips Act on its operations and future investments[291]. Cash Flow and Financing - Cash, cash equivalents, and restricted cash amounted to $314.7 million as of June 30, 2022, up from $204.8 million in 2021[333]. - Net cash provided by operating activities for fiscal year 2022 was $218.9 million, driven by net income of $453.2 million and non-cash charges of $287.6 million[335]. - The company anticipates sufficient cash flows to meet its needs for at least the next twelve months, with plans for manufacturing capacity expansion funded by cash reserves and loans[332]. - Net cash used in investing activities for fiscal year 2022 was $130.8 million, primarily due to $138.0 million in purchases of property and equipment[339]. - Net cash used in financing activities for fiscal year 2022 was $21.9 million, with $64.3 million in proceeds from borrowings and $6.1 million from exercises of share options[341]. Debt and Obligations - Total contractual obligations as of June 30, 2022, amounted to $255.978 million, with $185.138 million due within one year[345]. - The company had an outstanding balance of $1.6 million under a renewed line of credit facility as of June 30, 2022[320]. - Jireh's term loan outstanding balance was $14.2 million as of June 30, 2022, with a fixed interest rate of 5.04% per annum[325]. Risk Management - The company is exposed to commodity price risk, particularly with gold, which has seen significant price increases in recent years[369]. - A 10% increase or decrease in raw material costs, such as gold, could affect the company's net earnings by $0.7 million[369]. - The company has been converting some products from gold wires to copper wires to mitigate commodity price risk[369]. - The management believes that foreign currency translation risk is not significant based on a 10% sensitivity analysis[367]. - The company does not enter into formal hedging arrangements to mitigate against commodity risk[369].

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) Q4 2022 Results Conference Call August 10, 2022 5:00 PM ET Company Participants Gary Dvorchak - IR Mike Chang - CEO Yifan Liang - CFO Stephen Chang - President Conference Call Participants David Williams - Benchmark Craig Ellis - B. Riley Jeremy Kwan - Stifel David Duley - Steelhead Securities Operator Good morning and -- good afternoon and thank you for attending today's Alpha and Omega Semiconductor Conference Call. My name is Austin, and I will be your ...