SUNNYVALE, Calif., Aug. 09, 2017 (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, 2017.
The results for the fiscal fourth quarter of 2017 ended June 30, 2017 were as follows:
| GAAP Financial Comparison |
| Quarterly |
| (in millions except percentage and per share
data) |
| (unaudited) |
| |
|
Three Months Ended |
| |
|
June 30,
2017 |
|
March 31,
2017 |
|
June 30,
2016 |
| Revenue |
|
$ |
98.0 |
|
|
$ |
93.3 |
|
|
$ |
91.4 |
|
| Gross Margin |
|
25.6 |
% |
|
24.3 |
% |
|
21.3 |
% |
| Operating Income |
|
$ |
3.6 |
|
|
$ |
3.0 |
|
|
$ |
2.6 |
|
| Net Income attributable to AOS |
|
$ |
4.1 |
|
|
$ |
3.6 |
|
|
$ |
1.9 |
|
| Income Per Share attributable to AOS - Diluted |
|
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Our non-GAAP measures exclude the effect of share-based compensation expenses in each of the periods presented, 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,
2017 |
|
March 31,
2017 |
|
June 30,
2016 |
| Revenue |
|
$ |
98.0 |
|
|
$ |
93.3 |
|
|
$ |
91.4 |
|
| Gross Margin |
|
26.0 |
% |
|
24.6 |
% |
|
21.5 |
% |
| Operating Income |
|
$ |
5.6 |
|
|
$ |
4.7 |
|
|
$ |
3.8 |
|
| Net Income attributable to AOS |
|
$ |
6.2 |
|
|
$ |
5.3 |
|
|
$ |
3.2 |
|
| Income Per Share attributable to AOS - Diluted |
|
$ |
0.25 |
|
|
$ |
0.21 |
|
|
$ |
0.13 |
|
GAAP and Non-GAAP Annual Financial Results
The results for the fiscal year ended June 30, 2017 were as follows:
- Revenue was $383.3 million, an increase of 14.2% from $335.7 million for the prior year.
- GAAP gross margin was 24.0%, compared to 19.6% for the prior year. Non-GAAP gross margin was 24.2%, compared to 19.8%
for the prior year.
- GAAP operating income was $13.1 million, compared to operating income of $1.5 million for the prior year. Non-GAAP
operating income was $19.8 million, compared to $6.3 million for the prior year.
- GAAP net income attributable to AOS was $13.8 million, compared to net loss attributable to AOS of $2.9 million for the prior
year. Non-GAAP net income attributable to AOS was $20.5 million, compared to non-GAAP net income attributable to AOS of
$1.8 million for the prior year.
- GAAP diluted income per share attributable to AOS was $0.56, compared to diluted loss per share attributable to AOS of $0.13
for the prior year. Non-GAAP diluted income per share attributable to AOS was $0.83, compared to non-GAAP diluted income
attributable to AOS of $0.08 for the prior year.
On a non-GAAP basis excluding the effect of share-based compensation expenses in each of the periods presented, 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).
“AOS delivered another strong quarter with record quarterly revenue of $98 million and the ninth consecutive quarter of gross
margin expansion, driven by healthy demand for our diversified new products. We closed fiscal year 2017 with record annual revenue
of $383 million and a significant increase in earnings per share from a year ago,” said Dr. Mike Chang, the chairman and CEO of the
company. “In response to current environment of tight supply, we are taking active measures to meet customer demand, including
expanding our manufacturing capacity starting from the September quarter. Looking ahead, we are confident that we can continue to
expand our business and improve profitability as we are seeing more sustainable growth opportunities.”
Business Outlook for Fiscal Q1 Ending September 30, 2017
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 $101 million and $105 million.
- GAAP gross margin is expected to be in the range of 25.5% plus or minus 1%.
- GAAP operating expenses are expected to be in the range of $22 million plus or minus $1 million.
- Tax expense is expected to be approximately $1.1 million to $1.3 million.
- Loss attributable to non-controlling interest is expected to be approximately $1.6 million.
The above projections on GAAP gross margin and GAAP operating expenses include estimated share-based compensation expense of
$2.0 million to $2.3 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, 2017 today, August 9, 2017 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. In addition, a copy of the script of prepared remarks by CEO
and CFO 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 projected amount of
revenue, gross margin, operating income (loss), income tax expenses, net income (loss), noncontrolling interest, and share-based
compensation expenses, our ability and strategy to develop new products, increase manufacturing capacity, expand our sales,
maintain optimal capacity and achieve sustained growth and profitability, and other information under the section entitled
“Business Outlook for Fiscal Q1 Ending September 30, 2017”. 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, 2017 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 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 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. In addition, different items may be excluded in non-GAAP measures presented in different periods. For
example, we have previously presented non-GAAP measures that excluded joint venture related costs for the quarter ended and the
fiscal year ended June 30, 2016, while exclusion of such costs for the period is not presented in this press release as the
management no longer believes that such non-GAAP presentation provides useful information to investors. We believe that the
change in such presentation is not significant as the excluded joint venture related costs were $137,000 and $241,000 in non-GAAP
net income and non-GAAP operating income for the quarterly period ended June 30, 2016, respectively, and $317,000 and $421,000 in
non-GAAP net income and non-GAAP operating income for the fiscal year ended June 30, 2016, respectively. 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,
2017 |
|
March 31,
2017 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
| |
|
|
|
|
|
|
|
|
|
| Revenue |
$ |
98,007 |
|
|
$ |
93,281 |
|
|
$ |
91,410 |
|
|
$ |
383,337 |
|
|
$ |
335,661 |
|
| Cost of goods sold |
72,921 |
|
|
70,584 |
|
|
71,940 |
|
|
291,516 |
|
|
269,839 |
|
| Gross profit |
25,086 |
|
|
22,697 |
|
|
19,470 |
|
|
91,821 |
|
|
65,822 |
|
| Gross margin |
25.6 |
% |
|
24.3 |
% |
|
21.3 |
% |
|
24.0 |
% |
|
19.6 |
% |
| |
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
| Research and development |
7,907 |
|
|
7,625 |
|
|
6,977 |
|
|
29,835 |
|
|
26,006 |
|
| Selling, general and administrative |
13,618 |
|
|
12,067 |
|
|
9,939 |
|
|
48,842 |
|
|
37,874 |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
432 |
|
| Total operating expenses |
21,525 |
|
|
19,692 |
|
|
16,916 |
|
|
78,677 |
|
|
64,312 |
|
| Operating income |
3,561 |
|
|
3,005 |
|
|
2,554 |
|
|
13,144 |
|
|
1,510 |
|
| |
|
|
|
|
|
|
|
|
|
| Interest income and other income (loss), net |
52 |
|
|
(74 |
) |
|
(163 |
) |
|
(141 |
) |
|
(498 |
) |
| Interest expense |
(19 |
) |
|
(22 |
) |
|
(1 |
) |
|
(91 |
) |
|
(23 |
) |
| Income before income taxes |
3,594 |
|
|
2,909 |
|
|
2,390 |
|
|
12,912 |
|
|
989 |
|
| |
|
|
|
|
|
|
|
|
|
| Income tax expense |
807 |
|
|
523 |
|
|
573 |
|
|
3,652 |
|
|
4,021 |
|
| Net income (loss) including noncontrolling interest |
2,787 |
|
|
2,386 |
|
|
1,817 |
|
|
9,260 |
|
|
(3,032 |
) |
| Net loss attributable to noncontrolling interest |
(1,332 |
) |
|
(1,170 |
) |
|
(104 |
) |
|
(4,569 |
) |
|
(104 |
) |
| Net income (loss) attributable to Alpha and Omega Semiconductor Limited |
$ |
4,119 |
|
|
$ |
3,556 |
|
|
$ |
1,921 |
|
|
$ |
13,829 |
|
|
$ |
(2,928 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net income (loss) per common share attributable to Alpha and Omega Semiconductor
Limited |
|
|
|
|
|
|
|
|
|
| Basic |
$ |
0.17 |
|
|
$ |
0.15 |
|
|
$ |
0.08 |
|
|
$ |
0.59 |
|
|
$ |
(0.13 |
) |
| Diluted |
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.08 |
|
|
$ |
0.56 |
|
|
$ |
(0.13 |
) |
| |
|
|
|
|
|
|
|
|
|
| Weighted average number of common share attributable to Alpha and Omega
Semiconductor Limited used to compute net income (loss) per share: |
|
|
|
|
|
|
|
|
|
| Basic |
23,917 |
|
|
23,675 |
|
|
22,608 |
|
|
23,526 |
|
|
22,452 |
|
| Diluted |
24,960 |
|
|
24,951 |
|
|
23,630 |
|
|
24,826 |
|
|
22,452 |
|
| Alpha and Omega Semiconductor
Limited |
| Condensed Consolidated Balance
Sheets |
| (in thousands, except par value per
share) |
| (unaudited) |
| |
June 30,
2017 |
|
June 30,
2016 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
| Cash and cash equivalents |
$ |
115,708 |
|
|
$ |
87,774 |
|
| Restricted cash |
221 |
|
|
188 |
|
| Accounts receivable, net |
28,410 |
|
|
26,594 |
|
| Inventories |
76,254 |
|
|
68,848 |
|
| Other current assets |
4,883 |
|
|
4,526 |
|
| Total current assets |
225,476 |
|
|
187,930 |
|
| Property, plant and equipment, net |
139,387 |
|
|
116,084 |
|
| Land use rights, net |
8,804 |
|
|
— |
|
| Deferred income tax assets - long term |
4,594 |
|
|
12,132 |
|
| Other long-term assets |
20,147 |
|
|
2,359 |
|
| Total assets |
$ |
398,408 |
|
|
$ |
318,505 |
|
| LIABILITIES AND EQUITY |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable |
$ |
63,134 |
|
|
$ |
42,718 |
|
| Accrued liabilities |
28,386 |
|
|
22,590 |
|
| Income taxes payable |
1,748 |
|
|
2,356 |
|
| Deferred margin |
814 |
|
|
997 |
|
| Capital leases |
828 |
|
|
819 |
|
| Total current liabilities |
94,910 |
|
|
69,480 |
|
| Income taxes payable - long term |
922 |
|
|
1,577 |
|
| Deferred income tax liabilities |
2,659 |
|
|
2,973 |
|
| Capital leases - long term |
866 |
|
|
1,695 |
|
| Other long term liabilities |
502 |
|
|
741 |
|
| Total liabilities |
99,859 |
|
|
76,466 |
|
| Equity: |
|
|
|
| Preferred shares, par value $0.002 per share: |
|
|
|
| Authorized: 10,000 shares; Issued and outstanding: none at
June 30, 2017 and 2016 |
— |
|
|
— |
|
| Common shares, par value $0.002 per share: |
|
|
|
| Authorized: 50,000 shares; Issued and outstanding: 29,600 shares and
23,992 shares at June 30, 2017 and 28,405 shares and 22,754 shares at June 30, 2016 |
59 |
|
|
57 |
|
| Treasury shares at cost; 5,608 shares at June 30, 2017 and 5,651
shares at June 30, 2016 |
(49,836 |
) |
|
(50,199 |
) |
| Additional paid-in capital |
206,332 |
|
|
191,444 |
|
| Accumulated other comprehensive income |
306 |
|
|
769 |
|
| Retained earnings |
113,909 |
|
|
100,071 |
|
| Total Alpha and Omega Semiconductor Limited shareholders’ equity |
270,770 |
|
|
242,142 |
|
| Noncontrolling interest |
27,779 |
|
|
(103 |
) |
| Total equity |
298,549 |
|
|
242,039 |
|
| Total liabilities and equity |
$ |
398,408 |
|
|
$ |
318,505 |
|
| 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,
2017 |
|
March 31,
2017 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
| |
|
|
|
|
|
|
|
|
|
| GAAP gross profit |
$ |
25,086 |
|
|
$ |
22,697 |
|
|
$ |
19,470 |
|
|
$ |
91,821 |
|
|
$ |
65,822 |
|
| Share-based compensation |
420 |
|
|
222 |
|
|
161 |
|
|
1,041 |
|
|
636 |
|
| Non-GAAP gross profit |
$ |
25,506 |
|
|
$ |
22,919 |
|
|
$ |
19,631 |
|
|
$ |
92,862 |
|
|
$ |
66,458 |
|
| Non-GAAP gross margin as a % of revenue |
26.0 |
% |
|
24.6 |
% |
|
21.5 |
% |
|
24.2 |
% |
|
19.8 |
% |
| |
|
|
|
|
|
|
|
|
|
| GAAP operating income |
$ |
3,561 |
|
|
$ |
3,005 |
|
|
$ |
2,554 |
|
|
$ |
13,144 |
|
|
$ |
1,510 |
|
| Share-based compensation |
2,049 |
|
|
1,715 |
|
|
1,266 |
|
|
6,634 |
|
|
4,313 |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
432 |
|
| Non-GAAP operating income |
$ |
5,610 |
|
|
$ |
4,720 |
|
|
$ |
3,820 |
|
|
$ |
19,778 |
|
|
$ |
6,255 |
|
| Non-GAAP operating income as a % of revenue |
5.7 |
% |
|
5.1 |
% |
|
4.2 |
% |
|
5.2 |
% |
|
1.9 |
% |
| |
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) attributable to AOS |
$ |
4,119 |
|
|
$ |
3,556 |
|
|
$ |
1,921 |
|
|
$ |
13,829 |
|
|
$ |
(2,928 |
) |
| Share-based compensation |
2,049 |
|
|
1,715 |
|
|
1,266 |
|
|
6,634 |
|
|
4,313 |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
432 |
|
| Non-GAAP net income attributable to AOS |
$ |
6,168 |
|
|
$ |
5,271 |
|
|
$ |
3,187 |
|
|
$ |
20,463 |
|
|
$ |
1,817 |
|
| Non-GAAP net income attributable to AOS as a % of revenue |
6.3 |
% |
|
5.7 |
% |
|
3.5 |
% |
|
5.3 |
% |
|
0.5 |
% |
| |
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) attributable to AOS |
$ |
4,119 |
|
|
$ |
3,556 |
|
|
$ |
1,921 |
|
|
$ |
13,829 |
|
|
$ |
(2,928 |
) |
| Share-based compensation |
2,049 |
|
|
1,715 |
|
|
1,266 |
|
|
6,634 |
|
|
4,313 |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
432 |
|
| Amortization and depreciation |
7,040 |
|
|
6,885 |
|
|
6,599 |
|
|
27,188 |
|
|
27,303 |
|
| Interest expense (income), net |
(18 |
) |
|
(54 |
) |
|
(13 |
) |
|
(140 |
) |
|
(21 |
) |
| Income tax expense |
807 |
|
|
523 |
|
|
573 |
|
|
3,652 |
|
|
4,021 |
|
| EBITDA |
$ |
13,997 |
|
|
$ |
12,625 |
|
|
$ |
10,346 |
|
|
$ |
51,163 |
|
|
$ |
33,120 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP diluted net income(loss) per share attributable to AOS |
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.08 |
|
|
$ |
0.56 |
|
|
$ |
(0.13 |
) |
| Share-based compensation |
0.08 |
|
|
0.07 |
|
|
0.05 |
|
|
0.27 |
|
|
0.19 |
|
| Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.02 |
|
| Non-GAAP diluted net income per share attributable to AOS |
$ |
0.25 |
|
|
$ |
0.21 |
|
|
$ |
0.13 |
|
|
$ |
0.83 |
|
|
$ |
0.08 |
|
| |
|
|
|
|
|
|
|
|
|
| Shares used to compute basic per share |
23,917 |
|
|
23,675 |
|
|
22,608 |
|
|
23,526 |
|
|
22,452 |
|
| Shares used to compute dilute per share |
24,960 |
|
|
24,951 |
|
|
23,630 |
|
|
24,826 |
|
|
23,114 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
CONTACT: Alpha and Omega Semiconductor Limited Investor Relations So-Yeon Jeong 408-789-3172 investors@aosmd.com
