“AOS is off to a great start in fiscal year 2019 with excellent financial results as we delivered another record-breaking quarterly revenue of $115.1 million, along with 29.7% non-GAAP gross margin, which was the highest since 2011. Our relentless effort and sharp execution on the business plan in the past few years have fundamentally upgraded AOS as a stronger force in the power semiconductor space, which paves the way for us to achieve our revenue and business growth objectives,” stated Dr. Mike Chang, chairman and CEO of the company.
“We are seeing continued demand across most applications that still exceeds our capacity to date even with some softness in a few spots of China market. Armed with expanded breadth and depth of product portfolio and enhanced partnerships with global brand names worldwide, we are confident about our long-term growth and sustainable profitability. We will continue to build up the momentum in our business expansion in fiscal year 2019 and beyond.”
Business Outlook for Fiscal Q2 Ending December 31, 2018
The following statements are based on management's current expectations. These statements are forward-looking, and actual results may differ materially. AOS undertakes no obligation to update these statements.
- Revenue is expected to be in the range of $112 million to $116 million.
- Gross margin is expected to be approximately 26.0% plus or minus 1%. Non-GAAP gross margin is expected to be approximately 29.0% plus or minus 1%. Non-GAAP gross margin excludes $0.5 million of estimated share-based compensation charge and $3.0 million of estimated production ramp-up costs relating to the Chongqing Joint Venture.
- Operating expenses are expected to be in the range of $32.0 million plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $25.0 million plus or minus $1 million. Both GAAP and non-GAAP operating expenses include $3.1 million to $3.3 million of estimated expenses relating to the development of our digital power controller team. Non-GAAP operating expenses exclude $3.1 million of estimated share-based compensation charge and $3.9 million of estimated pre-production expenses relating to the Chongqing Joint Venture.
- Tax expenses are expected to be in the range of $0.5 million to $0.7 million.
- Chongqing Joint Venture’s loss attributable to noncontrolling interest is expected to be around $4.0 million. On a non-GAAP basis, excluding estimated production ramp-up costs and pre-production expenses, this item is expected to be approximately $0.4 million.
Conference Call and Webcast
AOS plans to hold an investor teleconference and live webcast to discuss the financial results for the fiscal first quarter of 2019 ended September 30, 2018 today, November 1, 2018 at 2:00 p.m. PT / 5:00 p.m. ET. To participate in the live call, analysts and investors should dial 866-393-4306 (or 734-385-2616 if outside the U.S.). To access the live webcast and the subsequent replay of the conference call, which will be available for seven days after the live call, go to the "Events & Presentations" section of the company's investor relations website, http://investor.aosmd.com. In addition, a copy of the script of prepared remarks by CEO and CFO at the investor teleconference and webcast is available prior to the call at the Company’s investor relations website.
Forward-Looking Statements
This press release 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 revenue, gross margin,
operating income (loss), income tax expenses, net income (loss),
noncontrolling interest, and share-based compensation expenses, non-GAAP
gross margin, non-GAAP operating expenses, tax expenses, and non-GAAP
loss attributable to noncontrolling interest, our ability and strategy
to develop new products, including digital power controller products,
the ability to expand our sales, increase our capacity and achieve
sustained growth and profitability, the pre-production and production
phases of our Chongqing Joint Venture, the development of digital power
business, partnership with global brands, the relationship with key
customers, and other information under the section entitled “Business
Outlook for Fiscal Q2 Ending December 31, 2018”. Forward-looking
statements involve risks and uncertainties that may cause actual results
to differ materially from those contained in the forward-looking
statements. These factors include, but are not limited to, difficulties
and challenges in executing our diversification strategy into different
market segments; ordering pattern from distributors and seasonality; our
ability to introduce or develop new and enhanced products that achieve
market acceptance, the actual product performance in volume production,
the quality and reliability of our product, our ability to achieve
design wins, the general business and economic conditions, the state of
semiconductor industry and seasonality of our markets, our ability to
maintain factory utilization at a desirable level, our ability to
successfully operate our joint venture in China, our ability to develop
and succeed in the digital power business, and other risks as described
in our SEC filings, including our Annual Report on Form 10-K for the
fiscal year ended June 30, 2018 filed on August 23, 2018. Other unknown
or unpredictable factors or underlying assumptions subsequently proving
to be incorrect could cause actual results to differ materially from
those in the forward-looking statements. Although we believe that the
expectations reflected in the forward-looking statements are reasonable,
we cannot guarantee future results, level of activity, performance, or
achievements. You should not place undue reliance on these
forward-looking statements. All information provided in this press
release is as of today's date, unless otherwise stated, and AOS
undertakes no duty to update such information, except as required under
applicable law.
