Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2024 Ended December 31, 2023

Core Viewpoint - Alpha and Omega Semiconductor Limited (AOS) reported a decline in financial performance for the fiscal second quarter of 2024, with revenue and net income both decreasing compared to previous quarters and the same quarter last year. The company anticipates a challenging fiscal third quarter but sees potential recovery in the second half of 2024 driven by new product launches and market demand in specific sectors [1][4][5]. Financial Performance Summary - Revenue for the fiscal second quarter ended December 31, 2023, was $165.3 million, down 8.5% from the prior quarter and 12.4% year-over-year [4][5]. - GAAP gross margin was 26.6%, a decrease from 28.2% in the prior quarter and 28.1% in the same quarter last year [4][5]. - GAAP operating loss was $1.1 million, a significant decline from an operating income of $9.4 million in the prior quarter and $8.8 million in the same quarter last year [4][5]. - GAAP net loss was $2.9 million, compared to a net income of $5.8 million in the prior quarter and $6.3 million in the same quarter last year [4][5]. - Non-GAAP net income per share was $0.24, down from $0.33 in the prior quarter and $0.67 year-over-year [5][21]. Cash Flow and Liquidity - The company reported a consolidated cash flow used in operating activities of $23.5 million, compared to a cash flow provided of $13.8 million in the prior quarter [5]. - AOS ended the quarter with $162.3 million in cash and cash equivalents [5]. Business Outlook - For the fiscal third quarter ending March 31, 2024, AOS expects revenue to be approximately $150 million, with GAAP gross margin anticipated at 23.5% [6]. - The company anticipates a decrease in gross margin due to lower factory utilization related to seasonality and the Lunar New Year holiday [6]. Management Commentary - AOS CEO Stephen Chang noted that the fiscal Q2 results were in line with guidance, driven by recovery in various sectors, although offset by inventory corrections in gaming and weak demand for certain products [5]. - The CEO expressed confidence in the company's diverse product portfolio and its ability to navigate current market challenges while preparing for a potential resurgence in the second half of 2024 [5].