Alpha and Omega Semiconductor Limited (“AOS”) (NASDAQ: AOSL),
today reported financial results for the fiscal fourth quarter and
the fiscal year ended June 30, 2019.
The results for the fiscal fourth quarter of 2019 ended June 30,
2019 were as follows:
GAAP Financial
Comparison
Quarterly
(in millions, except percentage
and per share data)
(unaudited)
Three Months Ended
June 30, 2019
March 31, 2019
June 30, 2018
Revenue
$
111.9
$
109.1
$
109.9
Gross Margin
24.7
%
23.5
%
26.6
%
Operating Loss
$
(1.0
)
$
(3.7
)
$
(0.1
)
Net Income (Loss) Attributable to AOS
$
2.5
$
(1.6
)
$
1.0
Net Income (Loss) Per Share Attributable
to AOS - Diluted
$
0.10
$
(0.06
)
$
0.04
Non-GAAP Financial
Comparison
Quarterly
(in millions, except percentage
and per share data)
(unaudited)
Three Months Ended
June 30, 2019
March 31, 2019
June 30, 2018
Revenue
$
111.9
$
109.1
$
109.9
Non-GAAP Gross Margin
27.4
%
27.0
%
27.0
%
Non-GAAP Operating Income
$
8.0
$
6.3
$
7.8
Non-GAAP Net Income Attributable to
AOS
$
8.8
$
5.5
$
7.6
Non-GAAP Net Income Per Share Attributable
to AOS - Diluted
$
0.35
$
0.22
$
0.31
The non-GAAP financial measures in the schedule above exclude
the effect of share-based compensation expenses and pre-production
costs relating to the Chongqing Joint Venture in each of the
periods presented, as well as production ramp up costs for the
quarter ended June 30, 2019 and March 31, 2019. A detailed
reconciliation of GAAP and non-GAAP financial measures is included
at the end of this press release.
The results for the fiscal year ended June 30, 2019 were as
follows:
GAAP Financial
Comparison
Annually
(in millions, except percentage
and per share data)
(unaudited)
Year Ended June 30,
2019
2018
Revenue
$
450.9
$
421.6
Gross Margin
25.6
%
26.6
%
Operating Income (Loss)
$
(7.0
)
$
8.4
Net Income Attributable to AOS
$
1.9
$
14.3
Net Income Per Share attributable to AOS -
Diluted
$
0.08
$
0.57
Non-GAAP Financial
Comparison
Annually
(in millions, except percentage
and per share data)
(unaudited)
Year Ended June 30,
2019
2018
Revenue
$
450.9
$
421.6
Non-GAAP Gross Margin
28.4
%
26.9
%
Non-GAAP Operating Income
$
32.6
$
27.6
Non-GAAP Net Income Attributable to
AOS
$
30.3
$
28.2
Non-GAAP Net Income Per Share Attributable
to AOS - Diluted
$
1.23
$
1.14
The non-GAAP financial measures in the schedule above exclude
the effect of share-based compensation expenses and pre-production
costs relating to the Chongqing Joint Venture in each of the
periods presented, as well as production ramp up costs for fiscal
year ended June 30, 2019 and income tax benefit from tax reform for
fiscal year ended June 30, 2018. A detailed reconciliation of GAAP
and non-GAAP financial measures is included at the end of this
press release.
Financial Results for fiscal Q4 Ended June 30, 2019
- Revenue was $111.9 million, an increase of 2.6%
quarter-over-quarter and an increase of 1.8% from the same quarter
last year. The quarter-over-quarter increase was mainly due to
increased sales in smart phone related applications.
- GAAP gross margin was 24.7%. Non-GAAP gross margin was 27.4%,
an increase of 40 basis points quarter-over-quarter and from the
same quarter last year. The quarter-over-quarter increase was
primarily due to the improved product mix.
- GAAP operating expenses were $28.6 million. Non-GAAP operating
expenses were $22.6 million, a decrease of $0.6 million
quarter-over-quarter and an increase of $0.8 million from the same
quarter last year. The quarter-over-quarter decrease was primarily
due to the fluctuation of research and development engineering
expenses.
- GAAP operating loss was $1.0 million. Non-GAAP operating income
was $8.0 million as compared to $6.3 million for the prior quarter
and $7.8 million for the same quarter last year.
- GAAP earnings per share attributable to AOS was $0.10. Non-GAAP
earnings per share attributable to AOS was $0.35 compared to $0.22
for the prior quarter and $0.31 for the same quarter a year
ago.
- Consolidated cash flow provided by operating activities was
$8.3 million, compared to consolidated cash flow used in operating
activities of $10.8 million in the same quarter a year ago.
Operating cash flow generated by AOS alone was $15.2 million,
compared to $9.5 million for the prior quarter and $8.7 million for
the same quarter a year ago.
- The Company closed the quarter with $121.9 million of cash and
cash equivalents, including $100.7 million at AOS alone and $21.2
million at the Chongqing Joint Venture.
“Our solid fourth quarter results marked a strong finish to
fiscal year 2019, another record year on top of a very strong 2018.
This clearly demonstrates the strength of our business strategy,
operating excellence, as well as our diversified product portfolio
and growing customer base,” stated Dr. Mike Chang, chairman and CEO
of the company.
“Looking ahead, despite the ongoing challenges of current market
conditions and the geopolitical environment, we are consistently
making progress toward our calendar 2021 annual revenue target of
$600 million. The demand for our products, especially for mobile
and home appliance applications, remains strong. The ramp up of
Chongqing Joint Venture is well timed, as we are in the process of
increasing volume production for multiple global brand OEM
customers. We believe the success of our new product initiatives,
diversification in product portfolio and customer base, as well as
disciplined and timely investment in capacity expansion over the
past several years will further propel our long-term growth.”
Business Outlook for Fiscal Q1 Ending September 30,
2019
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 $115 million to $119
million.
- Gross margin is expected to be approximately 20.0% plus or
minus 1%. Non-GAAP gross margin is expected to be approximately
27.3% plus or minus 1%. Non-GAAP gross margin excludes $0.5 million
of estimated share-based compensation charge and $8.1 million of
estimated production ramp-up costs relating to the Chongqing Joint
Venture as the 12" fab initiates production in the September
quarter.
- Operating expenses are expected to be in the range of $27.0
million plus or minus $1 million. Non-GAAP operating expenses are
expected to be in the range of $24.6 million plus or minus $1
million. Both GAAP and non-GAAP operating expenses include $2.9
million to $3.1 million of estimated expenses relating to the
development of our digital power controller business. Non-GAAP
operating expenses exclude $2.4 million of estimated share-based
compensation charge.
- 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 approximately $5.4 million. On a
non-GAAP basis, excluding estimated production ramp-up costs, this
item is expected to be approximately $0.9 million.
Conference Call and Webcast
AOS plans to hold an investor teleconference and live webcast to
discuss the financial results for the fiscal fourth quarter and the
fiscal year ended June 30, 2019 today, August 7, 2019 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 management's prepared remarks 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, the market trend of Computing business in
2019, anticipated annual revenue target, our ability and strategy
to develop new products including digital power controller
products, the ability to expand our sales and market share,
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,
the relationship with key customers including global brand OEM
customers, trends in geopolitical environment, business pipeline
from design wins, and other information under the section entitled
“Business Outlook for Fiscal Q1 Ending September 30, 2019”.
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, our ability to successfully operate our joint venture
in China; our ability to develop and succeed in the digital power
business; difficulties and challenges in executing our
diversification strategy into different market segments; new
tariffs on goods from China; ordering pattern from distributors and
seasonality; our ability to introduce or develop new and enhanced
products that achieve market acceptance; decline of PC markets; 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; and other
risks as described in our SEC filings, including our Annual Report
on Form 10-K for the fiscal year ended June 30, 2019 to be filed by
AOS. 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.
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
(loss), net loss attributable to noncontrolling interest, net
income (loss) and diluted earnings per share ("EPS"). These
supplemental measures exclude share-based compensation expenses,
pre-production expenses related to Chongqing Joint Venture for all
periods presented, and production ramp up costs for all quarters of
the fiscal year ended of June 30, 2019, as well as income tax
benefit from tax reform for the fiscal year ended June 30, 2018 in
this press release. We also disclose certain non-GAAP financial
measures in our guidance for the next quarter, including non-GAAP
gross margin, operating expenses and loss attributable to
noncontrolling interest. These forecast supplemental measures
exclude estimated pre-production expenses and production ramp-up
costs relating to our Chongqing Joint Venture and estimated
share-based compensation expenses. We believe that these historical
and forecast non-GAAP financial measures can 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, such as
the joint venture pre-production expenses. 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 the non-GAAP financial measures we use
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. We seek to compensate for the
limitation of our non-GAAP presentation by providing 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 portable computers, flat-panel
TVs, LED lighting, smart phones, battery packs, 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, 2019
March 31, 2019
June 30, 2018
June 30, 2019
June 30, 2018
Revenue
$
111,856
$
109,067
$
109,897
$
450,920
$
421,553
Cost of goods sold
84,220
83,438
80,714
335,542
309,625
Gross profit
27,636
25,629
29,183
115,378
111,928
Gross margin
24.7
%
23.5
%
26.6
%
25.6
%
26.6
%
Operating expenses:
Research and development
11,030
11,417
9,951
46,431
37,344
Selling, general and administrative
17,564
17,947
19,307
75,967
66,164
Total operating expenses
28,594
29,364
29,258
122,398
103,508
Operating income (loss)
(958
)
(3,735
)
(75
)
(7,020
)
8,420
Interest income and other income (loss),
net
83
124
(1,589
)
543
(1,943
)
Interest expense
(1,990
)
(1,719
)
(685
)
(6,905
)
(821
)
Income (loss) before income taxes
(2,865
)
(5,330
)
(2,349
)
(13,382
)
5,656
Income tax expense (income)
(630
)
625
676
1,256
708
Net income (loss) including noncontrolling
interest
(2,235
)
(5,955
)
(3,025
)
(14,638
)
4,948
Net loss attributable to noncontrolling
interest
(4,780
)
(4,400
)
(4,046
)
(16,499
)
(9,315
)
Net income (loss) attributable to Alpha
and Omega Semiconductor Limited
$
2,545
$
(1,555
)
$
1,021
$
1,861
$
14,263
Net income (loss) per common share
attributable to Alpha and Omega Semiconductor Limited
Basic
$
0.10
$
(0.06
)
$
0.04
$
0.08
$
0.60
Diluted
$
0.10
$
(0.06
)
$
0.04
$
0.08
$
0.57
Weighted average number of common share
attributable to Alpha and Omega Semiconductor Limited used to
compute net income (loss) per share:
Basic
24,438
24,084
23,864
24,063
23,901
Diluted
24,996
24,084
24,628
24,698
24,844
Alpha and Omega Semiconductor
Limited
Condensed Consolidated Balance
Sheets
(in thousands, except par
value per share)
(unaudited)
June 30, 2019
June 30, 2018
ASSETS
Current assets:
Cash and cash equivalents
$
121,893
$
131,535
Restricted cash
364
189
Accounts receivable, net
24,296
33,755
Inventories
111,643
90,182
Other current assets
37,102
29,551
Total current assets
295,298
285,212
Property, plant and equipment, net
409,737
331,656
Intangible assets, net
16,882
16,591
Deferred income tax assets
4,822
4,892
Restricted cash - long-term
2,038
—
Other long-term assets
10,617
28,698
Total assets
$
739,394
$
667,049
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
94,384
$
92,661
Accrued liabilities
42,292
49,841
Income taxes payable
1,541
2,211
Short-term debt
26,609
3,811
Deferred margin
—
1,665
Capital leases
13,138
4,491
Total current liabilities
177,964
154,680
Long-term debt
59,380
26,786
Income taxes payable - long-term
993
924
Deferred income tax liabilities
466
713
Capital leases - long-term
47,082
56,791
Other long-term liabilities
10,220
993
Total liabilities
296,105
240,887
Equity:
Preferred shares, par value $0.002 per
share:
Authorized: 10,000 shares; issued and
outstanding: none at June 30, 2019 and 2018
—
—
Common shares, par value $0.002 per
share:
Authorized: 100,000 shares; issued and
outstanding: 31,163 shares and 24,517 shares, respectively at June
30, 2019 and 30,400 shares and 23,860 shares, respectively at June
30, 2018
62
61
Treasury shares at cost; 6,646 shares at
June 30, 2019 and 6,540 shares at June 30, 2018
(66,240
)
(64,790
)
Additional paid-in capital
234,410
220,244
Accumulated other comprehensive income
(loss)
(2,693
)
440
Retained earnings
125,485
122,639
Total Alpha and Omega Semiconductor
Limited shareholders’ equity
291,024
278,594
Noncontrolling interest
152,265
147,568
Total equity
443,289
426,162
Total liabilities and equity
$
739,394
$
667,049
Supplemental disclosures of financial
information:
(in thousands)
As of June 30, 2019
As of June 30, 2018
AOS
CQJV
Consolidated
AOS
CQJV
Consolidated
Cash and cash equivalents
$
100,733
$
21,160
$
121,893
$
88,269
$
43,266
$
131,535
Bank borrowings liabilities
$
41,048
$
99,865
*
$
140,913
$
30,876
$
60,416
*
$
91,292
Inventory
$
93,852
$
17,791
111,643
$
88,168
$
2,014
$
90,182
Property, plant and equipment, net
$
148,497
$
261,240
$
409,737
$
141,575
$
190,081
$
331,656
Total assets
$
375,004
$
364,390
$
739,394
$
384,380
$
282,669
$
667,049
Total equity
$
325,240
$
118,049
$
443,289
$
293,609
$
132,553
$
426,162
* AOS is not a guarantor of CQJV's
(Chongqing Joint Venture) debts.
Three Months Ended June 30,
2019
Three Months Ended March 31,
2019
Three Months Ended June 30,
2018
AOS
CQJV
Consolidated
AOS
CQJV
Consolidated
AOS
CQJV
Consolidated
Net cash provided by (used in) operating
activities
$
15,195
$
(6,930
)
$
8,265
$
9,540
$
(17,465
)
$
(7,925
)
$
8,722
$
(19,499
)
$
(10,777
)
Purchase of property and equipment
$
4,600
$
17,540
$
22,140
$
8,184
$
15,786
$
23,970
$
13,805
$
41,271
$
55,076
EBITDAS
$
15,076
$
(5,625
)
**
$
14,231
$
13,535
$
(6,093
)
**
$
11,842
$
15,292
$
(6,523
)
**
$
12,815
Year Ended June 30, 2019
Year Ended June 30, 2018
AOS
CQJV
Consolidated
AOS
CQJV
Consolidated
Net cash provided by (used in) operating
activities
$
65,287
$
(33,866
)
$
31,421
$
36,885
$
(33,405
)
$
3,480
Purchase of property and equipment
$
36,002
$
76,049
$
112,051
$
49,390
$
128,359
$
177,749
EBITDAS
$
61,012
$
(22,522
)
**
$
54,989
$
58,418
$
(11,598
)
**
$
56,135
** CQJV EBITDAS includes amounts attributable to noncontrolling
interest.
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, 2019
March 31, 2019
June 30, 2018
June 30, 2019
June 30, 2018
GAAP gross profit
$
27,636
$
25,629
$
29,183
$
115,378
$
111,928
Share-based compensation
431
494
461
1,963
1,641
Production ramp up costs related to joint
venture
2,587
3,350
—
10,570
—
Non-GAAP gross profit
$
30,654
$
29,473
$
29,644
$
127,911
$
113,569
Non-GAAP gross margin as a % of
revenue
27.4
%
27.0
%
27.0
%
28.4
%
26.9
%
GAAP operating income (loss)
$
(958
)
$
(3,735
)
$
(75
)
$
(7,020
)
$
8,420
Share-based compensation
2,518
3,112
2,935
13,177
11,412
Pre-production expenses related to joint
venture
3,902
3,584
4,988
15,847
7,760
Production ramp up costs related to joint
venture
2,587
3,350
—
10,570
—
Non-GAAP operating income
$
8,049
$
6,311
$
7,848
$
32,574
$
27,592
Non-GAAP operating margin as a % of
revenue
7.2
%
5.8
%
7.1
%
7.2
%
6.5
%
GAAP net income (loss) attributable to
AOS
$
2,545
$
(1,555
)
$
1,021
$
1,861
$
14,263
Share-based compensation
2,518
3,112
2,935
13,177
11,412
Pre-production expenses related to joint
venture
2,413
2,215
3,643
9,748
5,258
Production ramp up costs related to joint
venture
1,317
1,705
—
5,516
—
Income tax benefit from tax reform
—
—
—
—
(2,690
)
Non-GAAP net income attributable to
AOS
$
8,793
$
5,477
$
7,599
$
30,302
$
28,243
Non-GAAP net margin attributable to AOS as
a % of revenue
7.9
%
5.0
%
6.9
%
6.7
%
6.7
%
GAAP net income (loss) attributable to
AOS
$
2,545
$
(1,555
)
$
1,021
$
1,861
$
14,263
Share-based compensation
2,518
3,112
2,935
13,177
11,412
Amortization and depreciation
7,879
8,010
7,601
32,038
29,419
Interest expense (income), net
1,919
1,650
582
6,657
333
Income tax expense
(630
)
625
676
1,256
708
EBITDAS
$
14,231
$
11,842
$
12,815
$
54,989
$
56,135
GAAP diluted net income (loss) per share
attributable to AOS
$
0.10
$
(0.06
)
$
0.04
$
0.08
$
0.57
Share-based compensation
0.10
0.12
0.12
0.53
0.46
Pre-production expenses related to joint
venture
0.10
0.09
0.15
0.40
0.21
Production ramp up costs related to joint
venture
0.05
0.07
—
0.22
—
Income tax benefit from tax reform
—
—
—
—
(0.10
)
Non-GAAP diluted net income per share
attributable to AOS
$
0.35
$
0.22
$
0.31
$
1.23
$
1.14
Shares used to compute GAAP diluted net
income (loss) per share
24,996
24,084
24,628
24,698
24,844
Shares used to compute Non-GAAP diluted
net income per share
24,996
24,769
24,628
24,698
24,844
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190807005728/en/
Alpha and Omega Semiconductor Limited Investor Relations So-Yeon
Jeong 408-789-3172 investors@aosmd.com
Alpha and Omega Semicond... (NASDAQ:AOSL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Alpha and Omega Semicond... (NASDAQ:AOSL)
Historical Stock Chart
From Sep 2023 to Sep 2024