Alpha and Omega Semiconductor Reports Financial Results for the

Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2024 Ended December 31, 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 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 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 condensed 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									Six Months Ended
	December 31, 2023			September 30, 2023			December 31, 2022			December 31, 2023			December 31, 2022

Revenue	$	165,285		$	180,633		$	188,760		$	345,918		$	397,236
Cost of goods sold		121,284			129,708			135,719			250,992			273,067
Gross profit		44,001			50,925			53,041			94,926			124,169
Gross margin		26.6	%		28.2	%		28.1	%		27.4	%		31.3	%

Operating expenses:
Research and development		22,919			22,113			21,468			45,032			42,857
Selling, general and administrative		22,216			19,431			22,788			41,647			46,993
Total operating expenses		45,135			41,544			44,256			86,679			89,850
Operating income (loss)		(1,134	)		9,381			8,785			8,247			34,319

Other income (loss), net		(472	)		26			(903	)		(446	)		(919	)
Interest income (expense), net		274			229			(397	)		503			(1,005	)
Net income (loss) before income taxes		(1,332	)		9,636			7,485			8,304			32,395

Income tax expense		894			1,138			1,659			2,032			3,033
Net income (loss) before income (loss) from equity method investment		(2,226	)		8,498			5,826			6,272			29,362
Equity method investment income (loss) from equity investee		(697	)		(2,712	)		511			(3,409	)		3,013
Net income (loss)	$	(2,923	)	$	5,786		$	6,337		$	2,863		$	32,375

Net income (loss) per common share
Basic	$	(0.10	)	$	0.21		$	0.23		$	0.10		$	1.18
Diluted	$	(0.10	)	$	0.19		$	0.21		$	0.10		$	1.10

Weighted average number of common shares used to compute net income (loss) per share
Basic		27,939			27,693			27,511			27,816			27,451
Diluted		27,939			29,786			29,576			29,830			29,499

Alpha and Omega Semiconductor Limited
Condensed Consolidated Balance Sheets
(in thousands, except par value per share)
(unaudited)
	December 31, 2023			June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	162,266		$	195,188
Restricted cash		212			415
Accounts receivable, net		31,923			22,420
Inventories		191,709			183,247
Other current assets		20,509			22,666
Total current assets		406,619			423,936
Property, plant and equipment, net		349,046			357,831
Operating lease right-of-use assets		25,416			24,349
Intangible assets, net		5,141			6,765
Equity method investment		356,144			366,617
Deferred income tax assets		518			536
Other long-term assets		33,462			19,703
Total assets	$	1,176,346		$	1,199,737
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	45,156		$	50,775
Accrued liabilities		77,683			79,533
Payable related to equity investee, net		12,966			11,950
Income taxes payable		4,680			5,546
Short-term debt		11,533			11,434
Deferred revenue		3,715			8,073
Finance lease liabilities		900			867
Operating lease liabilities		4,963			4,383
Total current liabilities		161,596			172,561
Long-term debt		32,568			38,360
Income taxes payable - long-term		2,924			2,817
Deferred income tax liabilities		26,385			27,283
Finance lease liabilities - long-term		2,758			3,216
Operating lease liabilities - long-term		21,214			20,544
Other long-term liabilities		34,343			51,037
Total liabilities		281,788			315,818
Shareholders' Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at December 31, 2023 and June 30, 2023		—			—
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 35,205 shares and 28,051 shares, respectively at December 31, 2023 and 34,811 shares and 27,654 shares, respectively at June 30, 2023		70			70
Treasury shares at cost: 7,154 shares at December 31, 2023 and 7,157 shares at June 30, 2023		(79,343	)		(79,365	)
Additional paid-in capital		342,636			329,034
Accumulated other comprehensive loss		(13,937	)		(8,111	)
Retained earnings		645,132			642,291
Total shareholders' equity		894,558			883,919
Total liabilities and shareholders' equity	$	1,176,346		$	1,199,737


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

	Six Months Ended December 31,
		2023			2022
Net cash provided by (used in) operating activities	$	(9,628	)	$	37,015
Net cash used in investing activities		(21,431	)		(67,935	)
Net cash provided by (used in) financing activities		(2,146	)		4,526
Effect of exchange rate changes on cash, cash equivalents and restricted cash		80			(164	)
Net decrease in cash, cash equivalents and restricted cash		(33,125	)		(26,558	)
Cash, cash equivalents and restricted cash at beginning of period		195,603			314,651
Cash, cash equivalents and restricted cash at end of period	$	162,478		$	288,093

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									Six Months Ended
	December 31, 2023			September 30, 2023			December 31, 2022			December 31, 2023			December 31, 2022

GAAP gross profit	$	44,001		$	50,925		$	53,041			94,926		$	124,169
Share-based compensation		1,504			212			1,748			1,716			3,536
Amortization of purchased intangible		812			812			811			1,624			1,623
Non-GAAP gross profit	$	46,317		$	51,949		$	55,600		$	98,266		$	129,328
Non-GAAP gross margin as a % of revenue		28.0	%		28.8	%		29.5	%		28.4	%		32.6	%

GAAP operating expense	$	45,135		$	41,544		$	44,256		$	86,679		$	89,850
Share-based compensation		7,187			706			11,343			7,893			20,151
Legal costs related to government investigation		16			52			110			68			252
Non-GAAP operating expense	$	37,932		$	40,786		$	32,803		$	78,718		$	69,447

GAAP operating income (loss)	$	(1,134	)	$	9,381		$	8,785		$	8,247		$	34,319
Share-based compensation		8,691			918			13,091			9,609			23,687
Amortization of purchased intangible		812			812			811			1,624			1,623
Legal costs related to government investigation		16			52			110			68			252
Non-GAAP operating income	$	8,385		$	11,163		$	22,797		$	19,548		$	59,881
Non-GAAP operating margin as a % of revenue		5.1	%		6.2	%		12.1	%		5.7	%		15.1	%

GAAP net income (loss)	$	(2,923	)	$	5,786		$	6,337		$	2,863		$	32,375
Share-based compensation		8,691			918			13,091			9,609			23,687
Amortization of purchased intangible		812			812			811			1,624			1,623
Equity method investment (income) loss from equity investee		697			2,712			(511	)		3,409			(3,013	)
Legal costs related to government investigation		16			52			110			68			252
Income tax effect of non-GAAP adjustments		(96	)		(406	)		122			(502	)		241
Non-GAAP net income	$	7,197		$	9,874		$	19,960		$	17,071		$	55,165
Non-GAAP net margin as a % of revenue		4.4	%		5.5	%		10.6	%		4.9	%		13.9	%

GAAP net income (loss)	$	(2,923	)	$	5,786		$	6,337		$	2,863		$	32,375
Share-based compensation		8,691			918			13,091			9,609			23,687
Amortization and depreciation		13,573			12,951			10,804			26,524			20,156
Equity method investment (income) loss from equity investee		697			2,712			(511	)		3,409			(3,013	)
Interest expense (income), net		(274	)		(229	)		397			(503	)		1,005
Income tax expense		894			1,138			1,659			2,032			3,033
EBITDAS	$	20,658		$	23,276		$	31,777		$	43,934		$	77,243

GAAP diluted net income (loss) per share	$	(0.10	)	$	0.19		$	0.21		$	0.10		$	1.10
Share-based compensation		0.29			0.03			0.44			0.32			0.80
Amortization of purchased intangible		0.03			0.03			0.03			0.05			0.05
Equity method investment (income) loss from equity investee		0.02			0.09			(0.02	)		0.11			(0.10	)
Legal costs related to government investigation		0.00			0.00			0.00			0.00			0.01
Income tax effect of non-GAAP adjustments		(0.00	)		(0.01	)		0.01			(0.01	)		0.01
Non-GAAP diluted net income per share	$	0.24		$	0.33		$	0.67		$	0.57		$	1.87

Weighted average number of common shares used to compute GAAP diluted net income (loss) per share		27,939			29,786			29,576			29,830			29,499
Weighted average number of common shares used to compute Non-GAAP diluted net income (loss) per share		29,874			29,786			29,576			29,830			29,499

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