Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with U.S. GAAP, we disclose certain non-GAAP financial measures for our historical performance, including non-GAAP gross profit, gross margin, operating income, net income attributable to AOS, net income, diluted earnings per share ("EPS") and EBITDAS. These supplemental measures exclude, among other items, share-based compensation expenses, legal costs related to government investigation, amortization of purchased intangible, production ramp up costs related to the JV Company, income tax effect of non-GAAP adjustments, equity method investment loss from equity investee, and gain on deconsolidation and changes of equity interest in the JV Company. We also disclose certain non-GAAP financial measures in our guidance for the next quarter, including non-GAAP gross margin, operating expenses and earnings/loss in equity method investment. We believe that these historical and forecast non-GAAP financial measures provide useful information to both management and investors by excluding certain items and expenses that are not indicative of our core operating results or do not reflect our normal business operations. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as non-GAAP net income (loss) or non-GAAP operating expenses, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. In addition, we included the income tax effect of non-GAAP adjustments in the non-GAAP net income of reconciliation table for all periods presented as the management believes that such non-GAAP presentation provides useful information to investors, even though the amounts are not significant. We seek to compensate for the limitation of our non-GAAP presentation by having provided a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures both in the text in this press release and in the tables attached hereto. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures.
About Alpha and Omega Semiconductor
Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer and global supplier of a broad range of power semiconductors, including a wide portfolio of Power MOSFET, IGBT, IPM, TVS, HVIC, GaN/SiC, Power IC and Digital Power products. AOS has developed extensive intellectual property and technical knowledge that encompasses the latest advancements in the power semiconductor industry, which enables us to introduce innovative products to address the increasingly complex power requirements of advanced electronics. AOS differentiates itself by integrating its Discrete and IC semiconductor process technology, product design, and advanced packaging know-how to develop high performance power management solutions. AOS’ portfolio of products targets high-volume applications, including personal and portable computers, graphic cards, flat panel TVs, home appliances, power tools, smart phones, battery packs, quick chargers, home appliances, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. For more information, please visit www.aosmd.com.
The following unaudited consolidated financial statements are prepared in accordance with U.S. GAAP.
Alpha and Omega Semiconductor Limited |
||||||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||||||
(in thousands, except percentages and per share amounts) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
Three Months Ended |
Fiscal Year Ended |
||||||||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
June 30,
|
June 30,
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Revenue |
$ |
193,959 |
|
$ |
203,239 |
|
$ |
177,309 |
|
$ |
777,552 |
|
$ |
656,902 |
|
|||||
Cost of goods sold |
|
130,737 |
|
|
130,837 |
|
|
116,729 |
|
|
508,996 |
|
|
452,359 |
|
|||||
Gross profit |
|
63,222 |
|
|
72,402 |
|
|
60,580 |
|
|
268,556 |
|
|
204,543 |
|
|||||
Gross margin |
|
32.6 |
% |
|
35.6 |
% |
|
34.2 |
% |
|
34.5 |
% |
|
31.1 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
Operating expenses: |
|
|
|
|
|
|||||||||||||||
Research and development |
|
20,386 |
|
|
16,545 |
|
|
17,282 |
|
|
71,259 |
|
|
62,953 |
|
|||||
Selling, general and administrative |
|
24,696 |
|
|
24,625 |
|
|
20,935 |
|
|
95,259 |
|
|
77,514 |
|
|||||
Total operating expenses |
|
45,082 |
|
|
41,170 |
|
|
38,217 |
|
|
166,518 |
|
|
140,467 |
|
|||||
Operating income |
|
18,140 |
|
|
31,232 |
|
|
22,363 |
|
|
102,038 |
|
|
64,076 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Other income, net |
|
279 |
|
|
263 |
|
|
369 |
|
|
999 |
|
|
2,456 |
|
|||||
Interest expense, net |
|
(895 |
) |
|
(308 |
) |
|
(1,476 |
) |
|
(3,920 |
) |
|
(6,308 |
) |
|||||
Gain on deconsolidation of the JV Company |
|
— |
|
|
— |
|
|
— |
|
|
399,093 |
|
|
— |
|
|||||
Gain (loss) on changes of equity interest in the JV Company, net |
|
— |
|
|
4,501 |
|
|
— |
|
|
(3,140 |
) |
|
— |
|
|||||
Net income before income taxes |
|
17,524 |
|
|
35,688 |
|
|
21,256 |
|
|
495,070 |
|
|
60,224 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Income tax expense |
|
940 |
|
|
2,902 |
|
|
1,241 |
|
|
39,258 |
|
|
3,935 |
|
|||||
Net income before loss from equity method investment |
|
16,584 |
|
|
32,786 |
|
|
20,015 |
|
|
455,812 |
|
|
56,289 |
|
|||||
Equity method investment loss from equity investee |
|
1,493 |
|
|
1,136 |
|
|
— |
|
|
2,629 |
|
|
— |
|
|||||
Net income |
|
15,091 |
|
|
31,650 |
|
|
20,015 |
|
|
453,183 |
|
|
56,289 |
|
|||||
Net income (loss) attributable to noncontrolling interest |
|
— |
|
|
— |
|
|
476 |
|
|
20 |
|
|
(1,827 |
) |
|||||
Net income attributable to Alpha and Omega Semiconductor Limited |
$ |
15,091 |
|
$ |
31,650 |
|
$ |
19,539 |
|
$ |
453,163 |
|
$ |
58,116 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Net income per common share attributable to Alpha and Omega Semiconductor Limited |
|
|
|
|
|
|||||||||||||||
Basic |
$ |
0.55 |
|
$ |
1.18 |
|
$ |
0.74 |
|
$ |
16.93 |
|
$ |
2.25 |
|
|||||
Diluted |
$ |
0.53 |
|
$ |
1.11 |
|
$ |
0.71 |
|
$ |
16.07 |
|
$ |
2.13 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Weighted average number of common share attributable to Alpha and Omega Semiconductor Limited used to compute net income per share: |
|
|
|
|
|
|||||||||||||||
Basic |
|
27,269 |
|
|
26,829 |
|
|
26,251 |
|
|
26,764 |
|
|
25,786 |
|
|||||
Diluted |
|
28,466 |
|
|
28,423 |
|
|
27,705 |
|
|
28,203 |
|
|
27,272 |
|
Alpha and Omega Semiconductor Limited |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands, except par value per share) |
||||||||
(unaudited) |
||||||||
|
June 30, 2022 |
June 30, 2021 |
||||||
ASSETS |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
314,352 |
|
$ |
202,412 |
|
||
Restricted cash |
|
299 |
|
|
233 |
|
||
Accounts receivable, net |
|
65,681 |
|
|
35,789 |
|
||
Inventories |
|
158,040 |
|
|
154,293 |
|
||
Other current assets |
|
11,220 |
|
|
14,595 |
|
||
Total current assets |
|
549,592 |
|
|
407,322 |
|
||
Property, plant and equipment, net |
|
318,666 |
|
|
436,977 |
|
||
Operating lease right-of-use assets, net |
|
23,674 |
|
|
34,660 |
|
||
Intangible assets, net |
|
10,050 |
|
|
13,410 |
|
||
Equity method investment |
|
378,378 |
|
|
— |
|
||
Deferred income tax assets |
|
592 |
|
|
5,167 |
|
||
Restricted cash - long-term |
|
— |
|
|
2,168 |
|
||
Other long-term assets |
|
17,677 |
|
|
18,869 |
|
||
Total assets |
$ |
1,298,629 |
|
$ |
918,573 |
|
||
LIABILITIES AND EQUITY |
|
|
||||||
Current liabilities: |
|
|
||||||
Accounts payable |
$ |
87,377 |
|
$ |
80,699 |
|
||
Accrued liabilities |
|
115,632 |
|
|
69,494 |
|
||
Payable related to equity investee, net |
|
28,989 |
|
|
— |
|
||
Income taxes payable |
|
4,248 |
|
|
2,604 |
|
||
Short-term debt |
|
24,878 |
|
|
58,030 |
|
||
Finance lease liabilities |
|
1,376 |
|
|
16,724 |
|
||
Operating lease liabilities |
|
3,850 |
|
|
5,679 |
|
||
Total current liabilities |
|
266,350 |
|
|
233,230 |
|
||
Long-term debt |
|
38,156 |
|
|
77,990 |
|
||
Income taxes payable - long-term |
|
2,158 |
|
|
1,319 |
|
||
Deferred income tax liabilities |
|
28,757 |
|
|
2,448 |
|
||
Finance lease liabilities - long-term |
|
9,634 |
|
|
12,698 |
|
||
Operating lease liabilities - long-term |
|
20,878 |
|
|
30,440 |
|
||
Other long-term liabilities |
|
78,603 |
|
|
44,123 |
|
||
Total liabilities |
|
444,536 |
|
|
402,248 |
|
||
Equity: |
|
|
||||||
Preferred shares, par value $0.002 per share: |
|
|
||||||
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2022 and 2021 |
|
— |
|
|
— |
|
||
Common shares, par value $0.002 per share: |
|
|
||||||
Authorized: 100,000 shares; issued and outstanding: 33,988 shares and 27,371 shares, respectively at June 30, 2022 and 32,975 shares and 26,350 shares, respectively at June 30, 2021 |
|
68 |
|
|
66 |
|
||
Treasury shares at cost; 6,617 shares at June 30, 2022 and 6,625 shares at June 30, 2021 |
|
(66,000 |
) |
|
(66,064 |
) |
||
Additional paid-in capital |
|
288,951 |
|
|
259,993 |
|
||
Accumulated other comprehensive income |
|
1,080 |
|
|
2,315 |
|
||
Retained earnings |
|
629,994 |
|
|
176,895 |
|
||
Total Alpha and Omega Semiconductor Limited shareholders’ equity |
|
854,093 |
|
|
373,205 |
|
||
Noncontrolling interest |
|
— |
|
|
143,120 |
|
||
Total equity |
|
854,093 |
|
|
516,325 |
|
||
Total liabilities and equity |
$ |
1,298,629 |
|
$ |
918,573 |
|
Alpha and Omega Semiconductor Limited |
||||||||||||||||||||
Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures |
||||||||||||||||||||
(in thousands, except percentages and per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
Three Months Ended |
Fiscal Year Ended |
||||||||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
June 30,
|
June 30,
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
GAAP gross profit |
$ |
63,222 |
|
$ |
72,402 |
|
$ |
60,580 |
|
$ |
268,556 |
|
$ |
204,543 |
|
|||||
Share-based compensation |
|
1,565 |
|
|
1,282 |
|
|
561 |
|
|
5,125 |
|
|
1,756 |
|
|||||
Amortization of purchased intangible |
|
811 |
|
|
812 |
|
|
812 |
|
|
3,247 |
|
|
3,247 |
|
|||||
Production ramp up costs related to the JV Company |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
275 |
|
|||||
Non-GAAP gross profit |
$ |
65,598 |
|
$ |
74,496 |
|
$ |
61,953 |
|
$ |
276,928 |
|
$ |
209,821 |
|
|||||
Non-GAAP gross margin as a % of revenue |
|
33.8 |
% |
|
36.7 |
% |
|
34.9 |
% |
|
35.6 |
% |
|
31.9 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
GAAP operating expense |
$ |
45,082 |
|
$ |
41,170 |
|
$ |
38,217 |
|
$ |
166,518 |
|
$ |
140,467 |
|
|||||
Share-based compensation |
|
8,305 |
|
|
6,990 |
|
|
4,838 |
|
|
26,199 |
|
|
13,568 |
|
|||||
Legal costs related to government investigation |
|
84 |
|
|
221 |
|
|
553 |
|
|
1,030 |
|
|
3,066 |
|
|||||
Non-GAAP operating expense |
$ |
36,693 |
|
$ |
33,959 |
|
$ |
32,826 |
|
$ |
139,289 |
|
$ |
123,833 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
GAAP operating income |
$ |
18,140 |
|
$ |
31,232 |
|
$ |
22,363 |
|
$ |
102,038 |
|
$ |
64,076 |
|
|||||
Share-based compensation |
|
9,870 |
|
|
8,272 |
|
|
5,399 |
|
|
31,324 |
|
|
15,324 |
|
|||||
Amortization of purchased intangible |
|
811 |
|
|
812 |
|
|
812 |
|
|
3,247 |
|
|
3,247 |
|
|||||
Production ramp up costs related to the JV Company |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
275 |
|
|||||
Legal costs related to government investigation |
|
84 |
|
|
221 |
|
|
553 |
|
|
1,030 |
|
|
3,066 |
|
|||||
Non-GAAP operating income |
$ |
28,905 |
|
$ |
40,537 |
|
$ |
29,127 |
|
$ |
137,639 |
|
$ |
85,988 |
|
|||||
Non-GAAP operating margin as a % of revenue |
|
14.9 |
% |
|
19.9 |
% |
|
16.4 |
% |
|
17.7 |
% |
|
13.1 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
GAAP net income attributable to AOS |
$ |
15,091 |
|
$ |
31,650 |
|
$ |
19,539 |
|
$ |
453,163 |
|
$ |
58,116 |
|
|||||
Share-based compensation |
|
9,870 |
|
|
8,272 |
|
|
5,399 |
|
|
31,324 |
|
|
15,324 |
|
|||||
Amortization of purchased intangible |
|
811 |
|
|
812 |
|
|
812 |
|
|
3,247 |
|
|
3,247 |
|
|||||
Gain on deconsolidation and changes of the equity interest in the JV Company |
|
— |
|
|
(4,501 |
) |
|
— |
|
|
(395,953 |
) |
|
— |
|
|||||
Equity method investment loss from equity investee |
|
1,493 |
|
|
1,136 |
|
|
— |
|
|
2,629 |
|
|
— |
|
|||||
Production ramp up costs related to the JV Company |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
135 |
|
|||||
Legal costs related to government investigation |
|
84 |
|
|
221 |
|
|
553 |
|
|
1,030 |
|
|
3,066 |
|
|||||
Income tax effect of non-GAAP adjustments |
|
(234 |
) |
|
630 |
|
|
(2 |
) |
|
33,197 |
|
|
53 |
|
|||||
Non-GAAP net income attributable to AOS |
$ |
27,115 |
|
$ |
38,220 |
|
$ |
26,301 |
|
$ |
128,637 |
|
$ |
79,941 |
|
|||||
Non-GAAP net margin attributable to AOS as a % of revenue |
|
14.0 |
% |
|
18.8 |
% |
|
14.8 |
% |
|
16.5 |
% |
|
12.2 |
% |
|||||
|
|
|
|
|
|
|||||||||||||||
GAAP net income attributable to AOS |
$ |
15,091 |
|
$ |
31,650 |
|
$ |
19,539 |
|
$ |
453,163 |
|
$ |
58,116 |
|
|||||
Share-based compensation |
|
9,870 |
|
|
8,272 |
|
|
5,399 |
|
|
31,324 |
|
|
15,324 |
|
|||||
Amortization and depreciation |
|
8,588 |
|
|
8,603 |
|
|
13,251 |
|
|
42,851 |
|
|
52,685 |
|
|||||
Gain on deconsolidation and changes of the equity interest in the JV Company |
|
— |
|
|
(4,501 |
) |
|
— |
|
|
(395,953 |
) |
|
— |
|
|||||
Equity method investment loss from equity investee |
|
1,493 |
|
|
1,136 |
|
|
— |
|
|
2,629 |
|
|
— |
|
|||||
Interest expense, net |
|
895 |
|
|
308 |
|
|
1,476 |
|
|
3,920 |
|
|
6,308 |
|
|||||
Income tax expense |
|
940 |
|
|
2,902 |
|
|
1,241 |
|
|
39,258 |
|
|
3,935 |
|
|||||
EBITDAS |
$ |
36,877 |
|
$ |
48,370 |
|
$ |
40,906 |
|
$ |
177,192 |
|
$ |
136,368 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
GAAP diluted net income per share attributable to AOS |
$ |
0.53 |
|
$ |
1.11 |
|
$ |
0.71 |
|
$ |
16.07 |
|
$ |
2.13 |
|
|||||
Share-based compensation |
|
0.35 |
|
|
0.29 |
|
|
0.19 |
|
|
1.11 |
|
|
0.56 |
|
|||||
Amortization of purchased intangible |
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.11 |
|
|
0.12 |
|
|||||
Gain on deconsolidation and changes of the equity interest in the JV Company |
|
— |
|
|
(0.16 |
) |
|
— |
|
|
(14.04 |
) |
|
— |
|
|||||
Equity method investment loss from equity investee |
|
0.05 |
|
|
0.04 |
|
|
— |
|
|
0.09 |
|
|
— |
|
|||||
Production ramp up costs related to the JV Company |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.01 |
|
|||||
Legal costs related to government investigation |
|
0.00 |
|
|
0.01 |
|
|
0.02 |
|
|
0.04 |
|
|
0.11 |
|
|||||
Income tax effect of non-GAAP adjustments |
|
(0.01 |
) |
|
0.02 |
|
|
0.00 |
|
|
1.18 |
|
|
0.00 |
|
|||||
Non-GAAP diluted net income per share attributable to AOS |
$ |
0.95 |
|
$ |
1.34 |
|
$ |
0.95 |
|
$ |
4.56 |
|
$ |
2.93 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Shares used to compute GAAP diluted net income per share |
|
28,466 |
|
|
28,423 |
|
|
27,705 |
|
|
28,203 |
|
|
27,272 |
|
|||||
Shares used to compute Non-GAAP diluted net income per share |
|
28,466 |
|
|
28,423 |
|
|
27,705 |
|
|
28,203 |
|
|
27.272 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|