SUNNYVALE, Calif., Aug. 10, 2016 (GLOBE NEWSWIRE) -- Alpha and Omega Semiconductor Limited (“AOS”) (NASDAQ:AOSL), today reported
financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2016.
The results for the fiscal fourth quarter of 2016 ended June 30, 2016 were as follows:
| GAAP Financial Comparison |
| Quarterly |
| (in millions except percentage and per share
data) |
| (unaudited) |
| |
|
Three Months Ended |
| |
|
June 30, 2016 |
|
March 31, 2016 |
|
June 30, 2015 |
| Revenue |
|
$ |
91.4 |
|
|
$ |
83.0 |
|
|
$ |
81.5 |
|
| Gross Margin |
|
21.3 |
% |
|
19.7 |
% |
|
17.6 |
% |
| Operating Income (Loss) |
|
$ |
2.6 |
|
|
$ |
(0.2 |
) |
|
$ |
(2.1 |
) |
| Net Income (Loss) attributable to AOS |
|
$ |
1.9 |
|
|
$ |
(1.3 |
) |
|
$ |
(2.9 |
) |
| Income (Loss) Per Share attributable to AOS - Diluted |
|
$ |
0.08 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
Our non-GAAP measures exclude the effect of share-based compensation expenses in each of the periods presented,
joint venture related costs in the quarter ended June 30, 2016 and March 31, 2016, and impairment of long-lived assets in the
quarter ended December 31, 2015. The results were as set forth below (see detailed reconciliation included at the end of this
press release).
| Non-GAAP Financial Comparison |
| Quarterly |
| (in millions except percentage and per share
data) |
| (unaudited) |
| |
|
Three Months Ended |
| |
|
June 30, 2016 |
|
March 31, 2016 |
|
June 30, 2015 |
| Revenue |
|
$ |
91.4 |
|
|
$ |
83.0 |
|
|
$ |
81.5 |
|
| Gross Margin |
|
21.5 |
% |
|
19.9 |
% |
|
17.8 |
% |
| Operating Income (Loss) |
|
$ |
4.1 |
|
|
$ |
1.2 |
|
|
$ |
(0.9 |
) |
| Net Income (Loss) attributable to AOS |
|
$ |
3.3 |
|
|
$ |
0.1 |
|
|
$ |
(1.8 |
) |
| Income (Loss) Per Share attributable to AOS - Diluted |
|
$ |
0.14 |
|
|
$ |
— |
|
|
$ |
(0.07 |
) |
"AOS closed the fiscal year 2016 on a positive note as we delivered both top and bottom lines above the high end of
our guidance range for the June quarter," said Dr. Mike Chang, the chairman and CEO of the company. "We were able to achieve a
Non-GAAP profit of 9 cents for the full fiscal year from a loss of 12 cents a year ago, which is a testament to the high operating
leverage of our business model. I am pleased to see that our multi-year recovery plan is starting to materialize, which is
attributable to the hard work, dedication and commitment by all of our employees. As we continue to ramp up new products and
win key design activities, I remain confident that we can successfully complete our plan by delivering meaningful revenue
growth and profitability."
The results for the fiscal year ended June 30, 2016 were as follows:
- Revenue was $335.7 million, an increase of 2.4% from $327.9 million for the prior year.
- GAAP gross margin was 19.6%, compared to 18.4% for the prior year. Non-GAAP gross margin was 19.8%, compared to 18.6%
for the prior year.
- GAAP operating income was $1.5 million, compared to operating loss of $4.2 million for the prior year. Non-GAAP
operating income was $6.7 million, compared to $0.3 million for the prior year.
- GAAP net loss attributable to AOS was $2.9 million, compared to net loss attributable to AOS of $7.8 million for the prior
year. Non-GAAP net income attributable to AOS was $2.1 million, compared to non-GAAP net loss attributable to AOS of $3.3
million for the prior year.
- GAAP diluted loss per share attributable to AOS was $0.13 compared to diluted loss per share attributable to AOS of $0.29 for
the prior year. Non-GAAP diluted income per share attributable to AOS was $0.09 compared to non-GAAP diluted loss
attributable to AOS of $0.12 for the prior year.
On a non-GAAP basis excluding the effect of share-based compensation expenses in each of the periods presented,
joint venture related costs in the quarter ended June 30, 2016 and March 31, 2016, and impairment of long-lived assets in the
quarter ended December 31, 2015, the results were as set forth in the attached schedules (see detailed reconciliation included at
the end of this press release).
Business Outlook for Fiscal Q1 Ending September 30, 2016
The following forward-looking statements are based on management's current expectations and actual results may differ
materially. AOS undertakes no obligation to update these statements.
- Revenue is expected to be between $93 million and $97 million.
- GAAP gross margin is expected to be in the range of 21.5% plus or minus 1%.
- GAAP operating expenses are expected to be in the range of $18 million plus or minus $1 million, including $0.8 million
expenses related to Chongqing joint venture.
- Tax expense is expected to be approximately $1.2 million to $1.4 million.
- Loss attributable to non-controlling interest is expected to be around $0.4 million.
The above projections on GAAP gross margin and GAAP operating expenses include estimated share-based compensation expense of
$1.3 million to $1.4 million.
Conference Call and Webcast
AOS plans to conduct an investor teleconference and live webcast to discuss the financial results for the fiscal
fourth quarter and the fiscal year ended June 30, 2016 today, August 10, 2016 at 2:00 p.m. PT / 5:00 p.m. ET. To participate
in the live call, analysts and investors should dial 877-312-8797 (or 253-237-1194 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.
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 the expected new product
cycle, projected amount of revenue, gross margin, operating income (loss), income tax expenses, net income (loss), and share-based
compensation expenses, expectation with respect to improvement in profit, our recovery progress and competitive position, our
ability and strategy to develop new products, expand our sales, design wins, revenue and profitability, growth in revenue and
market share, seasonality fluctuation in customer demand, the execution of our business plan, and other information under the
section entitled “Business Outlook for Fiscal Q1 Ending September 30, 2016”. 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, the decline of the PC industry and our ability to respond to such decline, our
ability to introduce or develop new and enhanced products that achieve market acceptance, 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, our ability to successfully operate our joint venture in China, and other risks as described in our SEC filings,
including our Annual Report on Form 10-K for the fiscal year ended June 30, 2016 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, including non-GAAP gross profit, gross margin, operating income (loss), net income (loss) and
diluted earnings per share ("EPS"). These supplemental measures exclude share-based compensation expenses, joint venture
related costs, and impairment of long-lived assets. We believe that non-GAAP financial measures can provide useful information
to both management and investors by excluding certain non-cash expenses that are not indicative of our core operating
results. 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 term
used in this press release, non-GAAP net income (loss), does 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 this limitation by providing a detailed reconciliation of the
non-GAAP financial measures to the most directly comparable U.S. GAAP measures in the tables attached to this press release.
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 and Power IC products. AOS has developed extensive
intellectual property and technical knowledge that encompasses the latest advancements in the power semiconductor industry, which
enables it 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's 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 http://www.aosmd.com. For investor relations, please contact So-Yeon Jeong at investors@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,
2016 |
|
March 31,
2016 |
|
June 30,
2015 |
|
June 30,
2016 |
|
June 30,
2015 |
| |
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
91,410 |
|
|
$ |
82,987 |
|
|
$ |
81,472 |
|
|
$ |
335,661 |
|
|
$ |
327,935 |
|
| Cost of goods sold |
71,940 |
|
|
66,668 |
|
|
67,156 |
|
|
269,839 |
|
|
267,453 |
|
| Gross profit |
19,470 |
|
|
16,319 |
|
|
14,316 |
|
|
65,822 |
|
|
60,482 |
|
| Gross margin |
21.3 |
% |
|
19.7 |
% |
|
17.6 |
% |
|
19.6 |
% |
|
18.4 |
% |
| |
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
| Research and development |
6,977 |
|
|
6,924 |
|
|
6,920 |
|
|
26,006 |
|
|
27,075 |
|
| Selling, general and administrative |
9,939 |
|
|
9,566 |
|
|
9,501 |
|
|
37,874 |
|
|
37,625 |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
432 |
|
|
— |
|
| Total operating expenses |
16,916 |
|
|
16,490 |
|
|
16,421 |
|
|
64,312 |
|
|
64,700 |
|
| Operating income (loss) |
2,554 |
|
|
(171 |
) |
|
(2,105 |
) |
|
1,510 |
|
|
(4,218 |
) |
| |
|
|
|
|
|
|
|
|
|
| Interest income and other income (loss), net |
(163 |
) |
|
132 |
|
|
275 |
|
|
(498 |
) |
|
533 |
|
| Interest expense |
(1 |
) |
|
(5 |
) |
|
(24 |
) |
|
(23 |
) |
|
(181 |
) |
| Income (loss) before income taxes |
2,390 |
|
|
(44 |
) |
|
(1,854 |
) |
|
989 |
|
|
(3,866 |
) |
| |
|
|
|
|
|
|
|
|
|
| Income tax expense |
573 |
|
|
1,219 |
|
|
1,071 |
|
|
4,021 |
|
|
3,897 |
|
| Net income (loss) including noncontrolling interest |
1,817 |
|
|
(1,263 |
) |
|
(2,925 |
) |
|
(3,032 |
) |
|
(7,763 |
) |
| Net loss attributable to noncontrolling interest |
(104 |
) |
|
— |
|
|
— |
|
|
(104 |
) |
|
— |
|
| Net income (loss) attributable to Alpha and Omega Semiconductor Limited |
$ |
1,921 |
|
|
$ |
(1,263 |
) |
|
$ |
(2,925 |
) |
|
$ |
(2,928 |
) |
|
$ |
(7,763 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net income (loss) per common share attributable to Alpha and Omega Semiconductor
Limited |
|
|
|
|
|
|
|
|
|
| Basic |
$ |
0.08 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.29 |
) |
| Diluted |
$ |
0.08 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.29 |
) |
| |
|
|
|
|
|
|
|
|
|
| Weighted average number of common share attributable to Alpha and Omega
Semiconductor Limited used to compute net income (loss) per share: |
|
|
|
|
|
|
|
|
|
| Basic |
22,608 |
|
|
22,232 |
|
|
26,307 |
|
|
22,452 |
|
|
26,429 |
|
| Diluted |
23,630 |
|
|
22,232 |
|
|
26,307 |
|
|
22,452 |
|
|
26,429 |
|
| Alpha and Omega Semiconductor
Limited |
| Condensed Consolidated Balance
Sheets |
| (in thousands, except par value per
share) |
| (unaudited) |
| |
| |
June 30,
2016 |
|
June 30,
2015 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
| Cash and cash equivalents |
$ |
87,774 |
|
|
$ |
106,085 |
|
| Restricted cash |
188 |
|
|
368 |
|
| Accounts receivable, net |
26,594 |
|
|
38,781 |
|
| Inventories |
68,848 |
|
|
64,175 |
|
| Other current assets |
4,526 |
|
|
4,279 |
|
| Total current assets |
187,930 |
|
|
213,688 |
|
| Property, plant and equipment, net |
116,084 |
|
|
119,579 |
|
| Deferred income tax assets - long term |
12,132 |
|
|
12,340 |
|
| Other long-term assets |
2,359 |
|
|
2,297 |
|
| Total assets |
$ |
318,505 |
|
|
$ |
347,904 |
|
| LIABILITIES AND EQUITY |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable |
$ |
42,718 |
|
|
$ |
44,083 |
|
| Accrued liabilities |
22,590 |
|
|
19,225 |
|
| Income taxes payable |
2,356 |
|
|
1,372 |
|
| Deferred margin |
997 |
|
|
716 |
|
| Capital leases |
819 |
|
|
941 |
|
| Total current liabilities |
69,480 |
|
|
66,337 |
|
| Income taxes payable - long term |
1,577 |
|
|
1,601 |
|
| Deferred income tax liabilities |
2,973 |
|
|
2,310 |
|
| Other long term liabilities |
2,436 |
|
|
1,017 |
|
| Total liabilities |
76,466 |
|
|
71,265 |
|
| Equity: |
|
|
|
| Preferred shares, par value $0.002 per share: |
|
|
|
| Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2016 and
2015 |
— |
|
|
— |
|
| Common shares, par value $0.002 per share: |
|
|
|
| Authorized: 50,000 shares; Issued and outstanding: 28,405 shares and 22,753 shares at June 30,
2016 and 27,314 shares and 26,316 shares at June 30, 2015 |
57 |
|
|
55 |
|
| Treasury shares at cost; 5,651 shares at June 30, 2016 and 998 shares at June 30, 2015 |
(50,199 |
) |
|
(8,593 |
) |
| Additional paid-in capital |
191,444 |
|
|
181,040 |
|
| Accumulated other comprehensive income |
769 |
|
|
905 |
|
| Retained earnings |
100,071 |
|
|
103,232 |
|
| Total Alpha and Omega Semiconductor Limited shareholders’ equity |
242,142 |
|
|
276,639 |
|
| Noncontrolling interest |
(103 |
) |
|
— |
|
| Total equity |
242,039 |
|
|
276,639 |
|
| Total liabilities and equity |
$ |
318,505 |
|
|
$ |
347,904 |
|
| 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,
2016 |
|
March 31,
2016 |
|
June 30,
2015 |
|
June 30,
2016 |
|
June 30,
2015 |
| |
|
|
|
|
|
|
|
|
|
| GAAP gross profit |
$ |
19,470 |
|
|
$ |
16,319 |
|
|
$ |
14,316 |
|
|
$ |
65,822 |
|
|
$ |
60,482 |
|
| Share-based compensation |
161 |
|
|
187 |
|
|
174 |
|
|
636 |
|
|
669 |
|
| Non-GAAP gross profit |
$ |
19,631 |
|
|
$ |
16,506 |
|
|
$ |
14,490 |
|
|
$ |
66,458 |
|
|
$ |
61,151 |
|
| Non-GAAP gross margin as a % of revenue |
21.5 |
% |
|
19.9 |
% |
|
17.8 |
% |
|
19.8 |
% |
|
18.6 |
% |
| |
|
|
|
|
|
|
|
|
|
| GAAP operating income (loss) |
$ |
2,554 |
|
|
$ |
(171 |
) |
|
$ |
(2,105 |
) |
|
$ |
1,510 |
|
|
$ |
(4,218 |
) |
| Share-based compensation |
1,266 |
|
|
1,173 |
|
|
1,171 |
|
|
4,313 |
|
|
4,490 |
|
| Joint venture related costs |
241 |
|
|
180 |
|
|
— |
|
|
421 |
|
|
— |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
432 |
|
|
— |
|
| Non-GAAP operating income (loss) |
$ |
4,061 |
|
|
$ |
1,182 |
|
|
$ |
(934 |
) |
|
$ |
6,676 |
|
|
$ |
272 |
|
| Non-GAAP operating income (loss) as a % of revenue |
4.4 |
% |
|
1.4 |
% |
|
(1.1 |
)% |
|
2.0 |
% |
|
0.1 |
% |
| |
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) attributable to AOS |
$ |
1,921 |
|
|
$ |
(1,263 |
) |
|
$ |
(2,925 |
) |
|
$ |
(2,928 |
) |
|
$ |
(7,763 |
) |
| Share-based compensation |
1,266 |
|
|
1,173 |
|
|
1,171 |
|
|
4,313 |
|
|
4,490 |
|
| Joint venture related costs |
137 |
|
|
180 |
|
|
— |
|
|
317 |
|
|
— |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
432 |
|
|
— |
|
| Non-GAAP net income (loss) attributable to AOS |
$ |
3,324 |
|
|
$ |
90 |
|
|
$ |
(1,754 |
) |
|
$ |
2,134 |
|
|
$ |
(3,273 |
) |
| Non-GAAP net income (loss) attributable to AOS as a % of revenue |
3.6 |
% |
|
0.1 |
% |
|
(2.2 |
)% |
|
0.6 |
% |
|
(1.0 |
)% |
| |
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) attributable to AOS |
$ |
1,921 |
|
|
$ |
(1,263 |
) |
|
$ |
(2,925 |
) |
|
$ |
(2,928 |
) |
|
$ |
(7,763 |
) |
| Share-based compensation |
1,266 |
|
|
1,173 |
|
|
1,171 |
|
|
4,313 |
|
|
4,490 |
|
| Amortization and depreciation |
6,599 |
|
|
6,927 |
|
|
6,741 |
|
|
27,303 |
|
|
27,547 |
|
| Interest expense (income), net |
(13 |
) |
|
(5 |
) |
|
10 |
|
|
(21 |
) |
|
75 |
|
| Income tax expense |
573 |
|
|
1,219 |
|
|
1,071 |
|
|
4,021 |
|
|
3,897 |
|
| EBITDA |
$ |
10,346 |
|
|
$ |
8,051 |
|
|
$ |
6,068 |
|
|
$ |
32,688 |
|
|
$ |
28,246 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP diluted net income(loss) per share attributable to AOS |
$ |
0.08 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.29 |
) |
| Share-based compensation |
0.05 |
|
|
0.05 |
|
|
0.04 |
|
|
0.19 |
|
|
0.17 |
|
| Joint venture related costs |
0.01 |
|
|
0.01 |
|
|
— |
|
|
0.01 |
|
|
— |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
0.02 |
|
|
— |
|
| Non-GAAP diluted net income (loss) per share attributable to AOS |
$ |
0.14 |
|
|
$ |
— |
|
|
$ |
(0.07 |
) |
|
$ |
0.09 |
|
|
$ |
(0.12 |
) |
| |
|
|
|
|
|
|
|
|
|
| Shares used to compute basic per share |
22,608 |
|
|
22,232 |
|
|
26,307 |
|
|
22,452 |
|
|
26,429 |
|
| Shares used to compute dilute per share |
23,630 |
|
|
22,944 |
|
|
26,307 |
|
|
23,114 |
|
|
26,429 |
|
CONTACT: Alpha and Omega Semiconductor Limited Investor Relations So-Yeon Jeong 408-789-3172 investors@aosmd.com
