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, 2024

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer, and global supplier of a broad range of discrete power devices, wide band gap power devices, power management ICs, and modules, including a wide portfolio of Power MOSFET, SiC, IGBT, IPM, TVS, HV 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 technology, 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, flat-panel TVs, LED lighting, smartphones, battery packs, consumer and industrial motor controls, automotive electronics, 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, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Revenue	$	161,296		$	150,060		$	161,525		$	657,274		$	691,321
Cost of goods sold		119,859			114,505			116,944			485,356			491,785
Gross profit		41,437			35,555			44,581			171,918			199,536
Gross margin		25.7	%		23.7	%		27.6	%		26.2	%		28.9	%

Operating expenses:
Research and development		21,813			23,095			22,711			89,940			88,146
Selling, general and administrative		21,123			22,964			19,258			85,734			88,861
Total operating expenses		42,936			46,059			41,969			175,674			177,007
Operating income (loss)		(1,499	)		(10,504	)		2,612			(3,756	)		22,529

Other income (loss), net		65			308			(298	)		(73	)		(1,730	)
Interest income (expense), net		412			271			(87	)		1,186			(1,087	)
Net income (loss) before income taxes		(1,022	)		(9,925	)		2,227			(2,643	)		19,712

Income tax expense		1,006			611			387			3,649			5,937
Net income (loss) before loss from equity method investment		(2,028	)		(10,536	)		1,840			(6,292	)		13,775
Equity method investment loss from equity investee		(704	)		(676	)		(2,944	)		(4,789	)		(1,411	)
Net income (loss)		(2,732	)		(11,212	)		(1,104	)		(11,081	)		12,364

Net income (loss) per common share
Basic	$	(0.09	)	$	(0.39	)	$	(0.04	)	$	(0.39	)	$	0.45
Diluted	$	(0.09	)	$	(0.39	)	$	(0.04	)	$	(0.39	)	$	0.42

Weighted average number of common shares used to compute net income (loss) per share:
Basic		28,879			28,433			27,598			28,236			27,522
Diluted		28,879			28,433			27,598			28,236			29,528

Alpha and Omega Semiconductor Limited
Condensed Consolidated Balance Sheets
(in thousands, except par value per share)
(unaudited)

	June 30, 2024			June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	175,127		$	195,188
Restricted cash		413			415
Accounts receivable, net		12,546			22,420
Inventories		195,750			183,247
Other current assets		10,506			22,666
Total current assets		394,342			423,936
Property, plant and equipment, net		336,619			357,831
Operating lease right-of-use assets, net		25,050			24,349
Intangible assets, net		3,516			6,765
Equity method investment		356,039			366,617
Deferred income tax assets		549			536
Other long-term assets		28,898			19,703
Total assets	$	1,145,013		$	1,199,737
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	45,084		$	50,775
Accrued liabilities		72,371			79,533
Payable related to equity investee, net		13,682			11,950
Income taxes payable		2,798			5,546
Short-term debt		11,635			11,434
Deferred revenue		2,591			8,073
Finance lease liabilities		935			867
Operating lease liabilities		5,137			4,383
Total current liabilities		154,233			172,561
Long-term debt		26,724			38,360
Income taxes payable - long-term		3,591			2,817
Deferred income tax liabilities		26,416			27,283
Finance lease liabilities - long-term		2,282			3,216
Operating lease liabilities - long-term		20,499			20,544
Other long-term liabilities		19,661			51,037
Total liabilities		253,406			315,818
Commitments and contingencies (Note 14)
Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2024 and 2023		—			—
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 36,107 shares and 28,969 shares, respectively at June 30, 2024 and 34,811 shares and 27,654 shares, respectively at June 30, 2023		72			70
Treasury shares at cost; 7,138 shares at June 30, 2024 and 7,157 shares at June 30, 2023		(79,213	)		(79,365	)
Additional paid-in capital		353,109			329,034
Accumulated other comprehensive loss		(13,419	)		(8,111	)
Retained earnings		631,058			642,291
Total equity		891,607			883,919
Total liabilities and equity	$	1,145,013		$	1,199,737

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

	Fiscal Year Ended June 30,
	2024			2023
Net cash provided by operating activities	$	25,710		$	20,473
Net cash used in investing activities		(35,744	)		(109,630	)
Net cash used in financing activities		(9,903	)		(29,611	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(126	)		(280	)
Net decrease in cash, cash equivalents and restricted cash		(20,063	)		(119,048	)
Cash, cash equivalents and restricted cash at beginning of year		195,603			314,651
Cash, cash equivalents and restricted cash at end of year	$	175,540		$	195,603

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, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

GAAP gross profit	$	41,437		$	35,555		$	44,581		$	171,918		$	199,536
Share-based compensation		294			1,424			592			3,434			5,851
Amortization of purchased intangible		812			812			812			3,247			3,247
Non-GAAP gross profit	$	42,543		$	37,791		$	45,985		$	178,599		$	208,634
Non-GAAP gross margin as a % of revenue		26.4	%		25.2	%		28.5	%		27.2	%		30.2	%

GAAP operating expense	$	42,936		$	46,059		$	41,969		$	175,674		$	177,007
Share-based compensation		3,273			7,041			2,777			18,207			31,637
Legal costs related to government investigation		352			103			99			524			656
Non-GAAP operating expense	$	39,311		$	38,915		$	39,093		$	156,943		$	144,714

GAAP operating income (loss)	$	(1,499	)	$	(10,504	)	$	2,612		$	(3,756	)	$	22,529
Share-based compensation		3,567			8,465			3,369			21,641			37,488
Amortization of purchased intangible		812			812			812			3,247			3,247
Legal costs related to government investigation		352			103			99			524			656
Non-GAAP operating income (loss)	$	3,232		$	(1,124	)	$	6,892		$	21,656		$	63,920
Non-GAAP operating margin as a % of revenue		2.0	%		(0.7	)%		4.3	%		3.3	%		9.2	%

GAAP net income (loss)	$	(2,732	)	$	(11,212	)	$	(1,104	)	$	(11,081	)	$	12,364
Share-based compensation		3,567			8,465			3,369			21,641			37,488
Amortization of purchased intangible		812			812			812			3,247			3,247
Equity method investment loss from equity investee		704			676			2,944			4,789			1,411
Legal costs related to government investigation		352			103			99			524			656
Income tax effect of non-GAAP adjustments		(78	)		(47	)		(397	)		(627	)		(153	)
Non-GAAP net income (loss)	$	2,625		$	(1,203	)	$	5,723		$	18,493		$	55,013
Non-GAAP net margin as a % of revenue		1.6	%		(0.8	)%		3.5	%		2.8	%		8.0	%

GAAP net income (loss)	$	(2,732	)	$	(11,212	)	$	(1,104	)	$	(11,081	)	$	12,364
Share-based compensation		3,567			8,465			3,369			21,641			37,488
Amortization and depreciation		13,908			13,325			12,045			53,757			43,207
Equity method investment loss from equity investee		704			676			2,944			4,789			1,411
Interest expense (income), net		(412	)		(271	)		86			(1,186	)		1,087
Income tax expense		1,006			611			387			3,649			5,937
EBITDAS	$	16,041		$	11,594		$	17,727		$	71,569		$	101,494

GAAP diluted net income (loss) per share	$	(0.09	)	$	(0.39	)	$	(0.04	)	$	(0.37	)	$	0.42
Share-based compensation		0.12			0.30			0.11			0.72			1.27
Amortization of purchased intangible		0.03			0.03			0.03			0.11			0.11
Equity method investment loss from equity investee		0.02			0.02			0.10			0.16			0.05
Legal costs related to government investigation		0.01			0.00			0.00			0.02			0.02
Income tax effect of non-GAAP adjustments		(0.00	)		(0.00	)		(0.01	)		(0.02	)		(0.01	)
Non-GAAP diluted net income (loss) per share	$	0.09		$	(0.04	)	$	0.19		$	0.62		$	1.86

Weighted average number of common shares used to compute GAAP diluted net income (loss) per share		28,879			28,433			27,598			28,236			29,528
Weighed average number of common shares used to compute Non-GAAP diluted net income (loss) per share		30,463			28,433			29,382			30,052			29,528

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