UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
FORM 10-Q
_________________________________
(MARK ONE)
- QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024
OR
- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM |
TO |
|
Commission file number 001-34717 |
||
__________________________ |
||
Alpha and Omega Semiconductor Limited |
||
(Exact name of Registrant as Specified in its Charter) |
||
Bermuda |
77-0553536 |
|
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
Clarendon House, 2 Church Street
Hamilton HM 11, Bermuda
(Address of Principal Registered
Offices including Zip Code)
(408) 830-9742
(Registrant's Telephone Number, Including Area Code)
__________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer |
☒ |
Accelerated filer |
☐ |
Non-accelerated filer |
☐ |
(Do not check if a smaller reporting company) |
|||||
☐ |
Emerging growth |
☐ |
|||
Smaller reporting company |
company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Common Shares |
AOSL |
The NASDAQ Global Select Market |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ Number of common shares outstanding as of April 30, 2024: 28,701,746
Alpha and Omega Semiconductor Limited
Form 10-Q
Fiscal Second Quarter Ended March 31, 2024
TABLE OF CONTENTS
Page |
||
Part I. |
FINANCIAL INFORMATION |
|
Item 1. |
Financial Statements: |
1 |
Condensed Consolidated Balance Sheets as of March 31, 2024 and June 30, 2023 (Unaudited) |
1 |
|
Condensed Consolidated Statements of Income (Loss) for the Three and Nine Months Ended March |
2 |
|
31, 2024 and 2023 (Unaudited) |
||
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months |
||
Ended March 31, 2024 and 2023 (Unaudited) |
3 |
|
Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine |
4 |
|
Months Ended March 31, 2024 and 2023 (Unaudited) |
||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2024 and |
6 |
|
2023 (Unaudited) |
||
Notes to Condensed Consolidated Financial Statements (Unaudited) |
7 |
|
Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
31 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
46 |
Item 4. |
Controls and Procedures |
46 |
Part II. |
OTHER INFORMATION |
|
Item 1. |
Legal Proceedings |
47 |
Item 1A. |
Risk Factors |
47 |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
48 |
Item 3. |
Defaults Upon Senior Securities |
49 |
Item 4. |
Mine Safety Disclosures |
49 |
Item 5. |
Other Information |
49 |
Item 6. |
Exhibits |
50 |
Signatures |
51 |
|
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
ALPHA AND OMEGA SEMICONDUCTOR LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands except par value per share)
March 31, |
June 30, |
||||
2024 |
2023 |
||||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
$ |
174,387 |
$ |
195,188 |
|
Restricted cash |
208 |
415 |
|||
Accounts receivable, net |
13,254 |
22,420 |
|||
Inventories |
198,098 |
183,247 |
|||
Other current assets |
8,604 |
22,666 |
|||
Total current assets |
394,551 |
423,936 |
|||
Property, plant and equipment, net |
339,515 |
357,831 |
|||
Operating lease right-of-use assets |
24,421 |
24,349 |
|||
Intangible assets, net |
4,328 |
6,765 |
|||
Equity method investment |
359,244 |
366,617 |
|||
Deferred income tax assets |
499 |
536 |
|||
Other long-term assets |
31,491 |
19,703 |
|||
Total assets |
$ |
1,154,049 |
$ |
1,199,737 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
Accounts payable |
$ |
42,513 |
$ |
50,775 |
|
Accrued liabilities |
73,587 |
79,533 |
|||
Payable related to equity investee, net |
14,275 |
11,950 |
|||
Income taxes payable |
4,490 |
5,546 |
|||
Short-term debt |
11,584 |
11,434 |
|||
Deferred revenue |
7,664 |
8,073 |
|||
Finance lease liabilities |
917 |
867 |
|||
Operating lease liabilities |
4,909 |
4,383 |
|||
Total current liabilities |
159,939 |
172,561 |
|||
Long-term debt |
29,653 |
38,360 |
|||
Income taxes payable - long-term |
2,978 |
2,817 |
|||
Deferred income tax liabilities |
26,337 |
27,283 |
|||
Finance lease liabilities - long-term |
2,522 |
3,216 |
|||
Operating lease liabilities - long-term |
20,099 |
20,544 |
|||
Other long-term liabilities |
23,584 |
51,037 |
|||
Total liabilities |
265,112 |
315,818 |
|||
Commitments and contingencies (Note 12) |
|||||
Shareholders' Equity: |
|||||
Preferred shares, par value $0.002 per share: |
|||||
Authorized: 10,000 shares; issued and outstanding: none at March 31, 2024 and June 30, 2023 |
- |
- |
|||
Common shares, par value $0.002 per share: |
|||||
Authorized: 100,000 shares; issued and outstanding: 35,836 shares and 28,697 shares, respectively at |
72 |
70 |
|||
March 31, 2024 and 34,811 shares and 27,654 shares, respectively at June 30, 2023 |
|||||
Treasury shares at cost: 7,139 shares at March 31, 2024 and 7,157 shares at June 30, 2023 |
(79,220) |
(79,365) |
|||
Additional paid-in capital |
345,413 |
329,034 |
|||
Accumulated other comprehensive loss |
(11,125) |
(8,111) |
|||
Retained earnings |
633,797 |
642,291 |
|||
Total shareholders' equity |
888,937 |
883,919 |
|||
Total liabilities and shareholders' equity |
$ |
1,154,049 |
$ |
1,199,737 |
|
See accompanying notes to these condensed consolidated financial statements.
1
Table of Contents
ALPHA AND OMEGA SEMICONDUCTOR LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited, in thousands except per share data)
Three Months Ended March 31, |
Nine Months Ended March 31, |
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Revenue |
$ |
150,060 |
$ |
132,560 |
$ |
495,978 |
$ |
529,796 |
|||
Cost of goods sold |
114,505 |
101,774 |
365,497 |
374,841 |
|||||||
Gross profit |
35,555 |
30,786 |
130,481 |
154,955 |
|||||||
Operating expenses |
|||||||||||
Research and development |
23,095 |
22,578 |
68,127 |
65,435 |
|||||||
Selling, general and administrative |
22,964 |
22,610 |
64,611 |
69,603 |
|||||||
Total operating expenses |
46,059 |
45,188 |
132,738 |
135,038 |
|||||||
Operating income (loss) |
(10,504) |
(14,402) |
(2,257) |
19,917 |
|||||||
Other income (loss), net |
308 |
(513) |
(138) |
(1,432) |
|||||||
Interest income (expense), net |
271 |
5 |
774 |
(1,000) |
|||||||
Net income (loss) before income taxes |
(9,925) |
(14,910) |
(1,621) |
17,485 |
|||||||
Income tax expense |
611 |
2,517 |
2,643 |
5,550 |
|||||||
Net income (loss) before income (loss) from equity method |
(10,536) |
(17,427) |
(4,264) |
11,935 |
|||||||
investment |
|||||||||||
Equity method investment income (loss) from equity investee |
(676) |
(1,480) |
(4,085) |
1,533 |
|||||||
Net income (loss) |
$ |
(11,212) |
$ |
(18,907) |
$ |
(8,349) |
$ |
13,468 |
|||
Net income (loss) per common share |
|||||||||||
Basic |
$ |
(0.39) |
$ |
(0.68) |
$ |
(0.30) |
$ |
0.49 |
|||
Diluted |
$ |
(0.39) |
$ |
(0.68) |
$ |
(0.30) |
$ |
0.46 |
|||
Weighted average number of common shares used to compute net |
|||||||||||
income (loss) per share |
|||||||||||
Basic |
28,433 |
27,710 |
28,022 |
27,537 |
|||||||
Diluted |
28,433 |
27,710 |
28,022 |
29,576 |
See accompanying notes to these condensed consolidated financial statements.
2
Table of Contents
ALPHA AND OMEGA SEMICONDUCTOR LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited, in thousands)
Three Months Ended March 31, |
Nine Months Ended March 31, |
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Net income (loss) |
$ |
(11,212) |
$ |
(18,907) |
$ |
(8,349) |
$ |
13,468 |
|||
Other comprehensive income (loss), net of tax |
|||||||||||
Foreign currency translation adjustment |
2,812 |
3,748 |
(3,014) |
(10,236) |
|||||||
Comprehensive income (loss) |
$ |
(8,400) |
$ |
(15,159) |
$ |
(11,363) |
$ |
3,232 |
|||
See accompanying notes to these condensed consolidated financial statements.
3
ALPHA AND OMEGA SEMICONDUCTOR LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited, in thousands)
Common Shares |
Treasury Shares |
Additional |
Accumulated |
Total |
|||||||||||||||||
Other |
Retained |
||||||||||||||||||||
Paid-In |
Comprehensive |
Earnings |
Shareholders' |
||||||||||||||||||
Capital |
Equity |
||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Income ( Loss) |
|||||||||||||||||
Balance, December 31, 2022 |
34,181 |
$ |
68 |
(6,616) |
$ |
(65,990) |
$ |
316,141 |
$ |
(12,904) |
$ |
662,359 |
$ |
899,674 |
|||||||
Exercise of common stock options and |
611 |
1 |
- |
- |
531 |
- |
- |
532 |
|||||||||||||
release of restricted stock units |
|||||||||||||||||||||
Reissuance of treasury stock upon exercise |
|||||||||||||||||||||
of common stock options and release of |
- |
- |
6 |
50 |
- |
- |
(50) |
- |
|||||||||||||
RSUs |
|||||||||||||||||||||
Withholding tax on restricted stock units |
(217) |
- |
- |
- |
(5,556) |
- |
- |
(5,556) |
|||||||||||||
Repurchase of common shares under shares |
- |
- |
(107) |
(2,665) |
- |
- |
- |
(2,665) |
|||||||||||||
repurchase program |
|||||||||||||||||||||
Share-based compensation |
- |
- |
- |
- |
10,432 |
- |
- |
10,432 |
|||||||||||||
Net loss |
- |
- |
- |
- |
- |
- |
(18,907) |
(18,907) |
|||||||||||||
Foreign currency translation adjustment, net |
- |
- |
- |
- |
- |
3,748 |
- |
3,748 |
|||||||||||||
of tax |
|||||||||||||||||||||
Balance, March 31, 2023 |
34,575 |
$ |
69 |
(6,717) |
$ |
(68,605) |
$ |
321,548 |
$ |
(9,156) |
$ |
643,402 |
$ |
887,258 |
|||||||
Common Shares |
Treasury Shares |
Additional |
Accumulated |
Total |
|||||||||||||||||
Other |
Retained |
||||||||||||||||||||
Paid-In |
Shareholders' |
||||||||||||||||||||
Comprehensive |
Earnings |
||||||||||||||||||||
Capital |
Equity |
||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Income (Loss) |
|||||||||||||||||
Balance, June 30, 2022 |
33,988 |
$ |
68 |
(6,617) |
$ |
(66,000) |
$ |
288,951 |
$ |
1,080 |
$ |
629,994 |
$ |
854,093 |
|||||||
Exercise of common stock options and |
683 |
1 |
- |
- |
550 |
- |
- |
551 |
|||||||||||||
release of restricted stock units |
|||||||||||||||||||||
Reissuance of treasury stock upon exercise |
|||||||||||||||||||||
of common stock options and release of |
- |
- |
7 |
60 |
- |
- |
(60) |
- |
|||||||||||||
RSUs |
|||||||||||||||||||||
Withholding tax on restricted stock units |
(233) |
- |
- |
- |
(6,152) |
- |
- |
(6,152) |
|||||||||||||
Issuance of shares under ESPP |
137 |
- |
- |
- |
4,080 |
- |
- |
4,080 |
|||||||||||||
Repurchase of common shares under shares |
- |
- |
(107) |
(2,665) |
- |
- |
- |
(2,665) |
|||||||||||||
repurchase program |
|||||||||||||||||||||
Share-based compensation |
- |
- |
- |
- |
34,119 |
- |
- |
34,119 |
|||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
13,468 |
13,468 |
|||||||||||||
Foreign currency translation adjustment, net |
- |
- |
- |
- |
- |
(10,236) |
- |
(10,236) |
|||||||||||||
of tax |
|||||||||||||||||||||
Balance, March 31, 2023 |
34,575 |
$ |
69 |
(6,717) |
$ |
(68,605) |
$ |
321,548 |
$ |
(9,156) |
$ |
643,402 |
$ |
887,258 |
|||||||
See accompanying notes to these condensed consolidated financial statements.
4
ALPHA AND OMEGA SEMICONDUCTOR LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited, in thousands)
Common Shares |
Treasury Shares |
Additional |
Accumulated |
Total |
|||||||||||||||||
Other |
Retained |
||||||||||||||||||||
Paid-In |
Shareholders' |
||||||||||||||||||||
Comprehensive |
Earnings |
||||||||||||||||||||
Capital |
Equity |
||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Income (Loss) |
|||||||||||||||||
Balance, December 31, 2023 |
35,205 |
$ |
70 |
(7,154) |
$ |
(79,343) |
$ |
342,636 |
$ |
(13,937) |
$ |
645,132 |
$ |
894,558 |
|||||||
Exercise of common stock options and |
918 |
2 |
- |
- |
1,053 |
- |
- |
1,055 |
|||||||||||||
release of restricted stock units |
|||||||||||||||||||||
Reissuance of treasury stock upon exercise |
|||||||||||||||||||||
of common stock options and release of |
- |
15 |
123 |
- |
- |
(123) |
- |
||||||||||||||
RSUs |
|||||||||||||||||||||
Withholding tax on restricted stock units |
(287) |
- |
- |
- |
(6,741) |
- |
- |
(6,741) |
|||||||||||||
Issuance of shares under ESPP |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||
Share-based compensation |
- |
- |
- |
- |
8,465 |
- |
- |
8,465 |
|||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
(11,212) |
(11,212) |
|||||||||||||
Foreign currency translation adjustment, net |
- |
- |
- |
- |
- |
2,812 |
- |
2,812 |
|||||||||||||
of tax |
|||||||||||||||||||||
Balance, March 31, 2024 |
35,836 |
$ |
72 |
(7,139) |
$ |
(79,220) |
$ |
345,413 |
$ |
(11,125) |
$ |
633,797 |
$ |
888,937 |
|||||||
Common Shares |
Treasury Shares |
Additional |
Accumulated |
Total |
|||||||||||||||||
Other |
Retained |
||||||||||||||||||||
Paid-In |
Shareholders' |
||||||||||||||||||||
Comprehensive |
Earnings |
||||||||||||||||||||
Capital |
Equity |
||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Loss |
|||||||||||||||||
Balance, June 30, 2023 |
34,811 |
$ |
70 |
(7,157) |
$ |
(79,365) |
$ |
329,034 |
$ |
(8,111) |
$ |
642,291 |
$ |
883,919 |
|||||||
Exercise of common stock options and |
1,156 |
2 |
- |
- |
2,225 |
- |
- |
2,227 |
|||||||||||||
release of restricted stock units |
|||||||||||||||||||||
Reissuance of treasury stock upon exercise |
|||||||||||||||||||||
of common stock options and release of |
- |
- |
18 |
145 |
- |
- |
(145) |
- |
|||||||||||||
RSUs |
|||||||||||||||||||||
Withholding tax on restricted stock units |
(308) |
- |
- |
- |
(7,343) |
- |
- |
(7,343) |
|||||||||||||
Issuance of shares under ESPP |
177 |
- |
- |
- |
3,423 |
- |
- |
3,423 |
|||||||||||||
Share-based compensation |
- |
- |
- |
- |
18,074 |
- |
- |
18,074 |
|||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
(8,349) |
(8,349) |
|||||||||||||
Foreign currency translation adjustment, net |
- |
- |
- |
- |
- |
(3,014) |
- |
(3,014) |
|||||||||||||
of tax |
|||||||||||||||||||||
Balance, March 31, 2024 |
35,836 |
$ |
72 |
(7,139) |
$ |
(79,220) |
$ |
345,413 |
$ |
(11,125) |
$ |
633,797 |
$ |
888,937 |
|||||||
See accompanying notes to these condensed consolidated financial statements.
Attachments
Disclaimer
Alpha & Omega Semiconductor Ltd. published this content on 22 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 00:12:20 UTC.