Alpha and omega semiconductor reports financial results for fiscal fourth quarter and fiscal year ended june 30, 2022
Sunnyvale, calif.--(business wire)--alpha and omega semiconductor limited (“aos”) (nasdaq: aosl), today reported financial results for the fiscal fourth quarter and the fiscal year ended june 30, 2022. the results for the fiscal fourth quarter ended june 30, 2022 were as follows: gaap financial comparison quarterly (in millions, except percentage and per share data) (unaudited) three months ended june 30, 2022 march 31, 2022 june 30, 2021 revenue $ 194.0 $ 203.2 $ 177.3 gross margin 32.6 % 35.6 % 34.2 % operating income $ 18.1 $ 31.2 $ 22.4 net income attributable to aos $ 15.1 $ 31.7 $ 19.5 net income per share attributable to aos - diluted $ 0.53 $ 1.11 $ 0.71 non-gaap financial comparison quarterly (in millions, except percentage and per share data) (unaudited) three months ended june 30, 2022 march 31, 2022 june 30, 2021 revenue $ 194.0 $ 203.2 $ 177.3 non-gaap gross margin 33.8 % 36.7 % 34.9 % non-gaap operating income $ 28.9 $ 40.5 $ 29.1 non-gaap net income attributable to aos $ 27.1 $ 38.2 $ 26.3 non-gaap net income per share attributable to aos - diluted $ 0.95 $ 1.34 $ 0.95 the non-gaap financial measures in the schedule above and under the section "financial result for fiscal q4 ended june 30, 2022" below exclude the effect of share-based compensation expenses, amortization of purchased intangible, legal costs related to government investigation and income tax effect of non-gaap adjustments in each of the periods presented, and equity method investment loss from equity investee for the three months ended june 30, 2022 and march 31, 2022, as well as gain on deconsolidation and changes of equity interest in the jv company for the three months ended march 31, 2022. 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, 2022 and 2021 were as follows: gaap financial comparison annually (in millions, except percentage and per share data) (unaudited) year ended june 30, 2022 2021 revenue $ 777.6 $ 656.9 gross margin 34.5 % 31.1 % operating income $ 102.0 $ 64.1 net income attributable to aos $ 453.2 $ 58.1 net income per share attributable to aos - diluted $ 16.07 $ 2.13 non-gaap financial comparison annually (in millions, except percentage and per share data) (unaudited) year ended june 30, 2022 2021 revenue $ 777.6 $ 656.9 non-gaap gross margin 35.6 % 31.9 % non-gaap operating income $ 137.6 $ 86.0 non-gaap net income attributable to aos $ 128.6 $ 79.9 non-gaap net income per share attributable to aos - diluted $ 4.56 $ 2.93 the non-gaap financial measures in the schedule above exclude the effect of share-based compensation expenses, amortization of purchased intangible, legal costs related to government investigation and income tax effect of non-gaap adjustments for fiscal years ended june 30, 2022 and 2021, and equity method investment loss from equity investee and gain on deconsolidation and changes of equity interest in the jv company for the fiscal year ended june 30, 2022, as well as production ramp up costs related to joint venture for fiscal year ended june 30, 2021. 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, 2022 revenue was $194.0 million, an increase of 9.4% from the same quarter last year and a decrease of 4.6% quarter-over-quarter. gaap gross margin was 32.6%, down from 34.2% year-over-year and 35.6% in the prior quarter. non-gaap gross margin was 33.8%, down from 34.9% from the same quarter last year and down from 36.7% in the prior quarter. gaap operating expenses were $45.1 million, up from $41.2 million in the prior quarter and up from $38.2 million from the same quarter last year. non-gaap operating expenses were $36.7 million, an increase of $2.7 million from last quarter and an increase of $3.9 million from the same quarter last year. gaap operating income was $18.1 million, as compared to $31.2 million in the prior quarter and $22.4 million from the same quarter last year. non-gaap operating income was $28.9 million as compared to $40.5 million for the prior quarter and $29.1 million for the same quarter last year. gaap net income per share attributable to aos was $0.53, compared to $0.71 earnings per share for the same quarter last year and $1.11 for the prior quarter. non-gaap earnings per share attributable to aos was $0.95, compared to $0.95 for the same quarter last year and $1.34 for the prior quarter. consolidated cash flow provided by operating activities was $25.7 million, which included $3.4 million of net customer deposits, as compared to $61.8 million in prior quarter, which included $6.4 million of net customer deposits. the company closed the quarter with $314.4 million of cash and cash equivalents. aos chairman and chief executive officer dr. mike chang commented, "our fiscal q4 was another strong quarter despite the challenge posed by the covid lockdown in shanghai. once again, we outperformed our guidance midpoint. revenue was $194 million, an increase of 9% year-over-year. non-gaap gross margin was 33.8% and non-gaap eps was $0.95. as a reminder, our ability to assemble and ship products was severely limited for most of april due to the city-wide lockdown in shanghai. once cleared to restart operations at the end of april, it also took time for our assembly lines to return to full utilization. our shanghai facilities are mostly back to normal and are currently operating at full capacity. i want to express my deepest appreciation to our employees once again for their immense sacrifice and unwavering dedication to aos during these challenging times. we are grateful to have their loyalty and support.” dr. chang continued, "looking ahead, we are seeing inventory corrections happening in certain consumer end markets. while we are not immune to current global market conditions, as of today, our demand and backlog are still higher than our overall capacity. i believe our strategic position within our sector is resilient thanks to our technology leadership, diversified product portfolio, and strong tier 1 customer base in all our business segments. in fact, our market share at tier 1 customers is the highest that it has ever been. the electrification of everything is just getting started, and our power products sit at the forefront of this trend. we are on pace and focused to achieve our one billion dollar annual revenue target in the next couple of years.” business outlook for fiscal q1 ending september 30, 2022 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 $210 million plus or minus $3 million. gross margin is expected to be 33.8% plus or minus 1%. non-gaap gross margin is expected to be 35.0% plus or minus 1%. note that non-gaap gross margin excludes $1.8 million of estimated share-based compensation charges and $0.8 million of amortization of purchased intangible assets. gaap operating expenses are expected to be in the range of $45.7 million, plus or minus $1 million. non-gaap operating expenses are expected to be in the range of $36.5 million plus or minus $1 million. non-gaap operating expenses exclude $9.0 million of estimated share-based compensation charges and $0.2 million of estimated legal expenses related to the government investigation. interest expense is expected to be $1.2 million, and tax expense is expected to be $1.2 million to $1.4 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, 2022 today, august 10, 2022 at 2:00 p.m. pt / 5:00 p.m. et. to listen to the live conference call, please dial +1 (844) 200-6205 or +1 (929) 526-1599 if dialing from outside the united states and canada. the access code is 577380. a live webcast of the call will also be available in the "events & presentations" section of the company's investor relations website, http://investor.aosmd.com. the webcast replay will be available for seven days after the live call on the same website. in addition, a copy of the script of management's prepared remarks and a live webcast of the call will also be available in 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 macroeconomic conditions, resumption of production at our shanghai facilities and continuing impact of covid-19 pandemic, anticipated earnings power and non-gaap eps on an annual basis, our growth opportunities and new markets, our annual revenue target, projected amount of revenue, gross margin, operating income, income tax expenses, net income, and share-based compensation expenses, non-gaap gross margin, non-gaap operating expenses, tax expenses, our objectives to achieve revenue target, our ability to gain new customers and design wins, strategic partnership with customers, and other information under the section entitled “business outlook for fiscal q1 ending september 30, 2022”. 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 impact of covid-19 pandemic on our business and the city-wide lockdown in shanghai; deconsolidation of cqjv; our lack of control over the joint venture in china; difficulties and challenges in executing our diversification strategy into different market segments; new tariffs on goods from china; ordering pattern from distributors and seasonality; changes in regulatory environment and government investigation; 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, 2022 to be filed by aos with the sec and other periodic reports we filed with the sec. 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. the fiscal 2022 financial information reported in this press release is subject to the completion of our annual report which will be reported in our forthcoming form 10-k to be filed with the sec. 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, net income attributable to aos, net income, diluted earnings per share ("eps") and ebitdas. these supplemental measures exclude, among other items, share-based compensation expenses, legal costs related to government investigation, amortization of purchased intangible, production ramp up costs related to the jv company, income tax effect of non-gaap adjustments, equity method investment loss from equity investee, and gain on deconsolidation and changes of equity interest in the jv company. we also disclose certain non-gaap financial measures in our guidance for the next quarter, including non-gaap gross margin, operating expenses and earnings/loss in equity method investment. we believe that these historical and forecast non-gaap financial measures 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. 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 such non-gaap financial measures 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. in addition, we included the income tax effect of non-gaap adjustments in the non-gaap net income of reconciliation table for all periods presented as the management believes that such non-gaap presentation provides useful information to investors, even though the amounts are not significant. we seek to compensate for the limitation of our non-gaap presentation by having provided 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 personal and portable computers, graphic cards, flat panel tvs, home appliances, power tools, smart phones, battery packs, quick chargers, home appliances, 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, 2022 march 31, 2022 june 30, 2021 june 30, 2022 june 30, 2021 revenue $ 193,959 $ 203,239 $ 177,309 $ 777,552 $ 656,902 cost of goods sold 130,737 130,837 116,729 508,996 452,359 gross profit 63,222 72,402 60,580 268,556 204,543 gross margin 32.6 % 35.6 % 34.2 % 34.5 % 31.1 % operating expenses: research and development 20,386 16,545 17,282 71,259 62,953 selling, general and administrative 24,696 24,625 20,935 95,259 77,514 total operating expenses 45,082 41,170 38,217 166,518 140,467 operating income 18,140 31,232 22,363 102,038 64,076 other income, net 279 263 369 999 2,456 interest expense, net (895 ) (308 ) (1,476 ) (3,920 ) (6,308 ) gain on deconsolidation of the jv company — — — 399,093 — gain (loss) on changes of equity interest in the jv company, net — 4,501 — (3,140 ) — net income before income taxes 17,524 35,688 21,256 495,070 60,224 income tax expense 940 2,902 1,241 39,258 3,935 net income before loss from equity method investment 16,584 32,786 20,015 455,812 56,289 equity method investment loss from equity investee 1,493 1,136 — 2,629 — net income 15,091 31,650 20,015 453,183 56,289 net income (loss) attributable to noncontrolling interest — — 476 20 (1,827 ) net income attributable to alpha and omega semiconductor limited $ 15,091 $ 31,650 $ 19,539 $ 453,163 $ 58,116 net income per common share attributable to alpha and omega semiconductor limited basic $ 0.55 $ 1.18 $ 0.74 $ 16.93 $ 2.25 diluted $ 0.53 $ 1.11 $ 0.71 $ 16.07 $ 2.13 weighted average number of common share attributable to alpha and omega semiconductor limited used to compute net income per share: basic 27,269 26,829 26,251 26,764 25,786 diluted 28,466 28,423 27,705 28,203 27,272 alpha and omega semiconductor limited condensed consolidated balance sheets (in thousands, except par value per share) (unaudited) june 30, 2022 june 30, 2021 assets current assets: cash and cash equivalents $ 314,352 $ 202,412 restricted cash 299 233 accounts receivable, net 65,681 35,789 inventories 158,040 154,293 other current assets 11,220 14,595 total current assets 549,592 407,322 property, plant and equipment, net 318,666 436,977 operating lease right-of-use assets, net 23,674 34,660 intangible assets, net 10,050 13,410 equity method investment 378,378 — deferred income tax assets 592 5,167 restricted cash - long-term — 2,168 other long-term assets 17,677 18,869 total assets $ 1,298,629 $ 918,573 liabilities and equity current liabilities: accounts payable $ 87,377 $ 80,699 accrued liabilities 115,632 69,494 payable related to equity investee, net 28,989 — income taxes payable 4,248 2,604 short-term debt 24,878 58,030 finance lease liabilities 1,376 16,724 operating lease liabilities 3,850 5,679 total current liabilities 266,350 233,230 long-term debt 38,156 77,990 income taxes payable - long-term 2,158 1,319 deferred income tax liabilities 28,757 2,448 finance lease liabilities - long-term 9,634 12,698 operating lease liabilities - long-term 20,878 30,440 other long-term liabilities 78,603 44,123 total liabilities 444,536 402,248 equity: preferred shares, par value $0.002 per share: authorized: 10,000 shares; issued and outstanding: none at june 30, 2022 and 2021 — — common shares, par value $0.002 per share: authorized: 100,000 shares; issued and outstanding: 33,988 shares and 27,371 shares, respectively at june 30, 2022 and 32,975 shares and 26,350 shares, respectively at june 30, 2021 68 66 treasury shares at cost; 6,617 shares at june 30, 2022 and 6,625 shares at june 30, 2021 (66,000 ) (66,064 ) additional paid-in capital 288,951 259,993 accumulated other comprehensive income 1,080 2,315 retained earnings 629,994 176,895 total alpha and omega semiconductor limited shareholders’ equity 854,093 373,205 noncontrolling interest — 143,120 total equity 854,093 516,325 total liabilities and equity $ 1,298,629 $ 918,573 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, 2022 march 31, 2022 june 30, 2021 june 30, 2022 june 30, 2021 gaap gross profit $ 63,222 $ 72,402 $ 60,580 $ 268,556 $ 204,543 share-based compensation 1,565 1,282 561 5,125 1,756 amortization of purchased intangible 811 812 812 3,247 3,247 production ramp up costs related to the jv company — — — — 275 non-gaap gross profit $ 65,598 $ 74,496 $ 61,953 $ 276,928 $ 209,821 non-gaap gross margin as a % of revenue 33.8 % 36.7 % 34.9 % 35.6 % 31.9 % gaap operating expense $ 45,082 $ 41,170 $ 38,217 $ 166,518 $ 140,467 share-based compensation 8,305 6,990 4,838 26,199 13,568 legal costs related to government investigation 84 221 553 1,030 3,066 non-gaap operating expense $ 36,693 $ 33,959 $ 32,826 $ 139,289 $ 123,833 gaap operating income $ 18,140 $ 31,232 $ 22,363 $ 102,038 $ 64,076 share-based compensation 9,870 8,272 5,399 31,324 15,324 amortization of purchased intangible 811 812 812 3,247 3,247 production ramp up costs related to the jv company — — — — 275 legal costs related to government investigation 84 221 553 1,030 3,066 non-gaap operating income $ 28,905 $ 40,537 $ 29,127 $ 137,639 $ 85,988 non-gaap operating margin as a % of revenue 14.9 % 19.9 % 16.4 % 17.7 % 13.1 % gaap net income attributable to aos $ 15,091 $ 31,650 $ 19,539 $ 453,163 $ 58,116 share-based compensation 9,870 8,272 5,399 31,324 15,324 amortization of purchased intangible 811 812 812 3,247 3,247 gain on deconsolidation and changes of the equity interest in the jv company — (4,501 ) — (395,953 ) — equity method investment loss from equity investee 1,493 1,136 — 2,629 — production ramp up costs related to the jv company — — — — 135 legal costs related to government investigation 84 221 553 1,030 3,066 income tax effect of non-gaap adjustments (234 ) 630 (2 ) 33,197 53 non-gaap net income attributable to aos $ 27,115 $ 38,220 $ 26,301 $ 128,637 $ 79,941 non-gaap net margin attributable to aos as a % of revenue 14.0 % 18.8 % 14.8 % 16.5 % 12.2 % gaap net income attributable to aos $ 15,091 $ 31,650 $ 19,539 $ 453,163 $ 58,116 share-based compensation 9,870 8,272 5,399 31,324 15,324 amortization and depreciation 8,588 8,603 13,251 42,851 52,685 gain on deconsolidation and changes of the equity interest in the jv company — (4,501 ) — (395,953 ) — equity method investment loss from equity investee 1,493 1,136 — 2,629 — interest expense, net 895 308 1,476 3,920 6,308 income tax expense 940 2,902 1,241 39,258 3,935 ebitdas $ 36,877 $ 48,370 $ 40,906 $ 177,192 $ 136,368 gaap diluted net income per share attributable to aos $ 0.53 $ 1.11 $ 0.71 $ 16.07 $ 2.13 share-based compensation 0.35 0.29 0.19 1.11 0.56 amortization of purchased intangible 0.03 0.03 0.03 0.11 0.12 gain on deconsolidation and changes of the equity interest in the jv company — (0.16 ) — (14.04 ) — equity method investment loss from equity investee 0.05 0.04 — 0.09 — production ramp up costs related to the jv company — — — — 0.01 legal costs related to government investigation 0.00 0.01 0.02 0.04 0.11 income tax effect of non-gaap adjustments (0.01 ) 0.02 0.00 1.18 0.00 non-gaap diluted net income per share attributable to aos $ 0.95 $ 1.34 $ 0.95 $ 4.56 $ 2.93 shares used to compute gaap diluted net income per share 28,466 28,423 27,705 28,203 27,272 shares used to compute non-gaap diluted net income per share 28,466 28,423 27,705 28,203 27.272
