AOS(US:AOSL)2022-05-06 01:09Financial Data and Key Metrics Changes - Revenue reached a record $203 million, representing a 20% year-over-year growth and the first time exceeding $200 million [6][22] - Non-GAAP gross margin was 36.7%, flat quarter-over-quarter and up from 31.9% a year ago [22] - Non-GAAP EPS was $1.34, reflecting a 74% growth year-over-year [7][22] Business Line Data and Key Metrics Changes - Computing segment revenue increased by 28% year-over-year, accounting for 44% of total revenue [16] - Consumer segment revenue grew 24% year-over-year, representing 22% of total revenue [18] - Communications segment revenue was up 6% year-over-year, making up 14% of total revenue [19] - Power Supply and Industrial segments accounted for 19% of total revenue, with a 16% year-over-year increase [20] Market Data and Key Metrics Changes - Early signs of market demand slowdown were noted in end markets such as PC, smartphones, and home appliances [14] - Total backlog remains significantly higher than current capacity, indicating strong demand despite market softness [14][55] Company Strategy and Development Direction - The company is diversifying its packaging and testing operations and has begun outsourcing some steps to contract manufacturers [11] - The goal is to achieve $1 billion in annual revenue and beyond, with ongoing investments in R&D and sales [12][34] Management's Comments on Operating Environment and Future Outlook - The Shanghai lockdown has impacted operations, with an estimated revenue loss of $20 million to $25 million for the June quarter [9] - The company expects to recover a portion of lost revenue in the second half of the year as operations normalize [10] - Management remains optimistic about long-term growth driven by the global trend of electrification [11] Other Important Information - The company has a strong cash balance of $323.1 million, up from $269.3 million at the end of the previous quarter [25] - Capital expenditures for the March quarter were $43.4 million, with similar levels expected for the June quarter [26] Q&A Session Summary Question: Insights on the appliance market slowdown - Management noted that the slowdown is more from the demand side and not geographically concentrated [32] Question: OpEx increase in June - The increase is primarily due to investments in R&D and sales and marketing to support business growth [34] Question: Recovery of gross margin post-lockdowns - Management expects a return to normal gross margin levels in the second half of the year, depending on production dynamics [38] Question: Revenue recapture from Shanghai production loss - A portion of the production loss is expected to be recaptured, with ongoing wafer production unaffected [41] Question: Design win activity - Design wins remain steady, with a focus on both core and emerging markets [74]