Alpha and Omega Semiconductor Reports Financial Results for

Alpha and Omega Semiconductor Reports Financial Results for Fiscal Fourth Quarter and Fiscal Year Ended June 30, 2023

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 discretes, ICs, modules, and digital power solutions, including a wide portfolio of Power MOSFET, SiC, IGBT, IPM, TVS, Gate Drivers, 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 technologies, product design, and advanced packaging know-how to develop high performance power management solutions. AOS’ portfolio of products targets high-volume applications, including portable computers, graphic cards, flat panel TVs, home appliances, 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, 2023			March 31, 2023			June 30, 2022			June 30, 2023			June 30, 2022

Revenue	$	161,525		$	132,560		$	193,959		$	691,321		$	777,552
Cost of goods sold		116,944			101,774			130,737			491,785			508,996
Gross profit		44,581			30,786			63,222			199,536			268,556
Gross margin		27.6	%		23.2	%		32.6	%		28.9	%		34.5	%

Operating expenses:
Research and development		22,711			22,578			20,386			88,146			71,259
Selling, general and administrative		19,258			22,610			24,696			88,861			95,259
Total operating expenses		41,969			45,188			45,082			177,007			166,518
Operating income (loss)		2,612			(14,402	)		18,140			22,529			102,038

Other income (loss), net		(298	)		(513	)		279			(1,730	)		999
Interest income (expense), net		(87	)		5			(895	)		(1,087	)		(3,920	)
Gain on deconsolidation of the JV Company		—			—			—			—			399,093
Loss on changes of equity interest in the JV Company, net		—			—			—			—			(3,140	)
Net income before income taxes		2,227			(14,910	)		17,524			19,712			495,070

Income tax expense		387			2,517			940			5,937			39,258
Net income (loss) before loss from equity method investment		1,840			(17,427	)		16,584			13,775			455,812
Equity method investment loss from equity investee		(2,944	)		(1,480	)		(1,493	)		(1,411	)		(2,629	)
Net income (loss)		(1,104	)		(18,907	)		15,091			12,364			453,183
Net income attributable to noncontrolling interest		—			—			—			—			20
Net income (loss) attributable to Alpha and Omega Semiconductor Limited	$	(1,104	)	$	(18,907	)	$	15,091		$	12,364		$	453,163

Net income (loss) per common share attributable to Alpha and Omega Semiconductor Limited
Basic	$	(0.04	)	$	(0.68	)	$	0.55		$	0.45		$	16.93
Diluted	$	(0.04	)	$	(0.68	)	$	0.53		$	0.42		$	16.07

Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net income (loss) per share:
Basic		27,598			27,710			27,269			27,552			26,764
Diluted		27.598			27,710			28,466			29,528			28,203

Alpha and Omega Semiconductor Limited
Condensed Consolidated Balance Sheets
(in thousands, except par value per share)
(unaudited)
	June 30, 2023			June 30, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	195,188		$	314,352
Restricted cash		415			299
Accounts receivable, net		22,420			65,681
Inventories		183,247			158,040
Other current assets		22,666			11,220
Total current assets		423,936			549,592
Property, plant and equipment, net		357,831			318,666
Operating lease right-of-use assets, net		24,349			23,674
Intangible assets, net		6,765			10,050
Equity method investment		366,617			378,378
Deferred income tax assets		536			592
Other long-term assets		19,703			17,677
Total assets	$	1,199,737		$	1,298,629
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	50,775		$	87,377
Accrued liabilities		79,533			116,893
Payable related to equity investee, net		11,950			28,989
Income taxes payable		5,546			4,248
Short-term debt		11,434			25,563
Deferred revenue		8,073			—
Finance lease liabilities		867			802
Operating lease liabilities		4,383			3,850
Total current liabilities		172,561			267,722
Long-term debt		38,360			42,486
Income taxes payable - long-term		2,817			2,158
Deferred income tax liabilities		27,283			28,757
Finance lease liabilities - long-term		3,216			3,932
Operating lease liabilities - long-term		20,544			20,878
Other long-term liabilities		51,037			78,603
Total liabilities		315,818			444,536
Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2023 and 2022		—			—
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 34,811 shares and 27,654 shares, respectively at June 30, 2023 and 33,988 shares and 27,371 shares, respectively at June 30, 2022		70			68
Treasury shares at cost; 7,157 shares at June 30, 2023 and 6,617 shares at June 30, 2022		(79,365	)		(66,000	)
Additional paid-in capital		329,034			288,951
Accumulated other comprehensive income (loss)		(8,111	)		1,080
Retained earnings		642,291			629,994
Total equity		883,919			854,093
Total liabilities and equity	$	1,199,737		$	1,298,629

Alpha and Omega Semiconductor Limited
Selected Cash Flow Information
(in thousands)
(unaudited)

	Fiscal Year Ended June 30,
	2023			2022
Net cash provided by operating activities	$	20,473		$	218,865
Net cash used in investing activities		(109,630	)		(130,822	)
Net cash provided by (used in) financing activities		(29,611	)		21,854
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(280	)		(59	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(119,048	)		109,838
Cash, cash equivalents and restricted cash at beginning of year		314,651			204,813
Cash, cash equivalents and restricted cash at end of year	$	195,603		$	314,651

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, 2023			March 31, 2023			June 30, 2022			June 30, 2023			June 30, 2022

GAAP gross profit	$	44,581		$	30,786		$	63,222		$	199,536		$	268,556
Share-based compensation		592			1,723			1,565			5,851			5,125
Amortization of purchased intangible		812			812			811			3,247			3,247
Non-GAAP gross profit	$	45,985		$	33,321		$	65,598		$	208,634		$	276,928
Non-GAAP gross margin as a % of revenue		28.5	%		25.1	%		33.8	%		30.2	%		35.6	%

GAAP operating expense	$	41,969		$	45,188		$	45,082		$	177,007		$	166,518
Share-based compensation		2,777			8,709			8,305			31,637			26,199
Legal costs related to government investigation		99			304			84			656			1,030
Non-GAAP operating expense	$	39,093		$	36,175		$	36,693		$	144,714		$	139,289

GAAP operating income (loss)	$	2,612		$	(14,402	)	$	18,140		$	22,529		$	102,038
Share-based compensation		3,369			10,432			9,870			37,488			31,324
Amortization of purchased intangible		812			812			811			3,247			3,247
Legal costs related to government investigation		99			304			84			656			1,030
Non-GAAP operating income (loss)	$	6,892		$	(2,854	)	$	28,905		$	63,920		$	137,639
Non-GAAP operating margin as a % of revenue		4.3	%		(2.2	)%		14.9	%		9.2	%		17.7	%

GAAP net income (loss) attributable to AOS	$	(1,104	)	$	(18,907	)	$	15,091		$	12,364		$	453,163
Share-based compensation		3,369			10,432			9,870			37,488			31,324
Amortization of purchased intangible		812			812			811			3,247			3,247
Gain on deconsolidation and changes of the equity interest in the JV Company		—			—			—			—			(395,953	)
Equity method investment loss from equity investee		2,944			1,480			1,493			1,411			2,629
Legal costs related to government investigation		99			304			84			656			1,030
Income tax effect of non-GAAP adjustments		(397	)		3			(234	)		(153	)		33,197
Non-GAAP net income (loss) attributable to AOS	$	5,723		$	(5,876	)	$	27,115		$	55,013		$	128,637
Non-GAAP net margin attributable to AOS as a % of revenue		3.5	%		(4.4	)%		14.0	%		8.0	%		16.5	%

GAAP net income (loss) attributable to AOS	$	(1,104	)	$	(18,907	)	$	15,091		$	12,364		$	453,163
Share-based compensation		3,369			10,432			9,870			37,488			31,324
Amortization and depreciation		12,045			11,006			8,588			43,207			42,851
Gain on deconsolidation and changes of the equity interest in the JV Company		—			—			—			—			(395,953	)
Equity method investment loss from equity investee		2,944			1,480			1,493			1,411			2,629
Interest expense (income), net		86			(5	)		895			1,087			3,920
Income tax expense		387			2,517			940			5,937			39,258
EBITDAS	$	17,727		$	6,523		$	36,877		$	101,494		$	177,192

GAAP diluted net income (loss) per share attributable to AOS	$	(0.04	)	$	(0.68	)	$	0.53		$	0.42		$	16.07
Share-based compensation		0.11			0.38			0.35			1.27			1.11
Amortization of purchased intangible		0.03			0.03			0.03			0.11			0.11
Gain on deconsolidation and changes of the equity interest in the JV Company		—			—			—			—			(14.04	)
Equity method investment loss from equity investee		0.10			0.05			0.05			0.05			0.09
Legal costs related to government investigation		0.00			0.01			0.00			0.02			0.04
Income tax effect of non-GAAP adjustments		(0.01	)		0.00			(0.01	)		(0.01	)		1.18
Non-GAAP diluted net income (loss) per share attributable to AOS	$	0.19		$	(0.21	)	$	0.95		$	1.86		$	4.56



Shares used to compute GAAP diluted net income (loss) per share		27,598			27,710			28,466			29,528			28,203
Shares used to compute Non-GAAP diluted net income (loss) per share		29,382			27,710			28,466			29,528			28,203

« Previous Page 1 | 2 | 3 | 4 | 5 Next Page »