Alpha and Omega Semiconductor Q3 2025 Earnings Call Transcript

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May 7, 2025
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Operator

Good afternoon. Thank you for attending today's Alpha and Omega Semiconductor Fiscal Q3 twenty twenty five Earnings Call. My name is Cole, and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I'd now like to turn the call over to Steven Pellio.

Operator

Please go ahead.

Steven Pelayo
Managing Director at The Blueshirt Group

Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal twenty twenty five third quarter financial results for the quarter ended 03/31/2025. I'm Stephen Pileo, Investor Relations representative for AOS. With me today are Stephen Chang, our CEO and Yifan Liang, our CFO. This call is being recorded and broadcast live over the web. A replay will be available for seven days following the call via the link in the Investor Relations section of our website.

Steven Pelayo
Managing Director at The Blueshirt Group

Our call will proceed as follows today. Stephen will begin business updates, including strategic highlights and a detailed segment report. After that, Yifeng will review the financial results and provide guidance for the June. Finally, we will have a Q and A session. The earnings release was distributed over the wire today, 05/07/2025, after the market closed.

Steven Pelayo
Managing Director at The Blueshirt Group

The release is also posted on the company's website. Our earnings release and this presentation include non GAAP financial measures. We use non GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non GAAP measures to comparable GAAP measures is included in the earnings release. We remind you that during this conference call, we will make certain forward looking statements, including discussions of the business outlook and financial projections.

Steven Pelayo
Managing Director at The Blueshirt Group

These forward looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligation to update the information provided in today's call. Now I'll turn the call over to our CEO, Stephen Chang. Stephen?

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Thank you, Stephen. Welcome to Alpha and Omega's fiscal Q3 earnings call. I will begin with a high level overview of our results and then jump into segment details. We delivered fiscal Q3 revenue and EPS results at the high end of our guidance, driven by better than expected demand in computing. Revenue was $164,600,000 Non GAAP gross margin was 22.5%.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Non GAAP EPS was a loss of $0.10 Total revenue increased 9.7% year over year and declined 4.9% sequentially. As previously noted, licensing revenue began to wind down in the March. Excluding licensing, our product revenue was up 11.6% year over year and down 3.5% sequentially. We saw seasonal sequential declines in fiscal Q3 from each of our major segments except the Computing segment, which grew slightly sequentially against seasonality driven by tablets and notebooks. The Computing segment increased nearly 15% year over year.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Looking ahead, we face a dynamic landscape with macroeconomic, geopolitical and trade related uncertainties. Currently, our direct tariff exposure is minimal due to limited U. S. Shipments, but we're closely supporting customers navigating the supply chain complexities to ensure compliance and minimize disruptions. While we're seeing a near term uplift in the first half of the calendar year, broader visibility for the second half of twenty twenty five remains uncertain.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Nonetheless, we are delivering on our commitments and advancing our transformation from a component supplier to a total solutions provider. Our goal is to leverage premier customer relationships to expand market share and increase bond content with a broader portfolio. With that, let me now cover our segment results and provide some guidance by segment for the next quarter, starting with computing. March revenue was up 14.8% year over year and up 3.6% sequentially and represented 47.9 of total revenue. These results were ahead of our original expectations for a slight decline.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

The upside was driven by better than expected tablet demand, with revenue nearly doubling year over year to a quarterly record due to market share gains as well as some demand pull in for notebooks due to tariff uncertainties. In the March, we continue to experience robust demand for graphics and AI accelerated cards driven by a key customer scaling their next generation platform. Looking ahead to June, we anticipate even stronger performance with graphics card revenue projected to reach a record high. For AI applications, demand for high performance commute remains robust, and we are encouraged by this continued strong growth in data center capital spending. In Q1, we broadened our penetration with an existing premier customer to secure design win in one data center application with a notable increase in BOM content.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

This is a testament to our ability to provide total solutions with multi phase controllers and multiple power stages per GPU. Volume production for this program started in the March and will continue into the June. Design in activity is still ongoing for additional programs. However, visibility for the second half of the year remains limited due to uncertainties in end market demand. In the PC market, we expect continued pull in activity through the June driven by fluid trade regulations.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

In summary, we expect the Computing segment to increase mid single digits in the June and more than 15% year over year. The sequential growth is driven by PC related pull ins and strength in graphics cards. However, it is important to note that visibility into the second half of the year remains limited due to uncertain macro environment and evolving trade policies. Turning to the Consumer segment. March revenue was down 9% year over year and down 4.9% sequentially and represented 13% of total revenue.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

The results were in line with our forecast driven by seasonality in gaming and home appliances as well as a pullback in wearables following a record level achieved in the third calendar quarter of twenty twenty four. For the June, we forecast more than 25% sequential growth in the consumer segment driven by gaming and home appliances. Gaming is expected to be particularly strong due to pull ins for a targeted marketing push from a key customer. Next, let's discuss the Communications segment. Revenue in the March was up 5.8% year over year, down 14.4% sequentially and represented 17.2% of total revenue.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

The results were in line with our expectations for a seasonal sequential decline from our Tier one U. S. Smartphone customer, while China OEMs moderated only slightly and Korea was flattish as customers prepared for product launches in their first calendar quarter. We believe communications results continue to reflect a combination of market share gains, a mix shift to higher end phones in China and generally higher charging currents, driving increased bond content. Looking ahead, we anticipate flattish sequential growth in the June for the Communications segment.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

By region, we expect growth from smartphone customers in The U. S. And Korea offset by slower sales from China. Now let's talk about our last segment, Power Supply and Industrial, which accounted for 19.9% of total revenue and was up 32.4% year over year and down 6.2% sequentially. The results were ahead of our forecast for a low teen sequential decline, primarily driven by a seasonal decline in quick chargers offset by sequential growth in e mobility and ACDC power supplies.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

As we stated before, we see additional opportunities in 2025 for quick charges due to increased bond content driven by higher charging currents. Further, we are leveraging relationships in Taiwan to partner on DC fans for server racks. For the June, we expect revenue to be flat to slightly down sequentially for the Power Supply and Industrial segment, primarily driven by a seasonal increase in quick chargers and ACDC power supplies offset by lower e mobility revenue. In closing, we are pleased that March results were better than expected, ahead of seasonality primarily due to pull ins in the computing segment. Looking ahead, we face a dynamic geopolitical and macroeconomic environment.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

We are monitoring developments, ensuring compliance, diversifying our supply chain and collaborating with customers to minimize disruptions. For the June, driven by strength in Computing and Consumer segments, we currently expect low to mid single digit sequential revenue growth, suggesting June revenue should approximate the levels achieved in the December despite the stronger March results and discontinuation of licensing revenue. Excluding the impact from discontinued licensing revenue, we expect mid to upper single digit revenue growth. Gross margins in June should also approach the level achieved in the December driven by improved utilization rates and a richer product mix. Our business fundamentals remain strong, supported by cutting edge technology, a diverse product portfolio and marquee customer base.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

We expect revenue growth in calendar twenty twenty five driven by new market expansion, market share gains and increased bond content. While near term uncertainties remain, our focus remains steadfast on executing our strategy and delivering sustained value for our stakeholders. With that, I will now turn the call over to Yifan for a discussion of our fiscal third quarter financial results and our outlook for the next quarter. Yifan?

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Thank you, Stephen. Good afternoon, everyone, and thank you for joining us. Revenue for the quarter was $164,600,000 down 4.9% sequentially and up 9.7% year over year. In terms of product mix, DMOS revenue was $106,800,000, down 5.4% sequentially and up 13.9 over last year. Power IC revenue was $54,600,000, up 1.6% from the prior quarter and 9.2% from a year ago.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Assembly service and other revenue was $400,000 as compared to $1,100,000 last quarter and $1,200,000 for the same quarter last year. License and engineering service revenue was $2,800,000 for the quarter versus $5,400,000 in the prior quarter and $5,100,000 for the same quarter a year ago. This license and engineering service contract was completed in mid February. Non GAAP gross margin was 22.5% compared to 24.2% last quarter and 25.2% a year ago. The quarter over quarter decrease was mainly impacted by lower license and engineering service revenue in the March.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Non GAAP operating expenses were $39,700,000 compared to $39,000,000 for the prior quarter and $38,900,000 last year. The slight quarter increase was primarily due to higher payroll tax expenses given the start of a new calendar year. Non GAAP quarterly EPS was negative $0.10 compared to $09 per share last quarter and a negative 4¢ per share a year ago. Moving on to cash flow. Operating cash flow was 7,400,000, including $9,600,000 of repayment of customer deposits.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

By comparison, operating cash flow was $14,100,000 in the prior quarter and $28,200,000 last year. We expect to refund the $2,700,000 customer deposits in the June. We also repurchased 306,000 shares of employee restricted stock units vested during the quarter for $9,400,000. EBITDA for the quarter was $11,200,000 compared to $16,800,000 last quarter and $11,600,000 for the same quarter a year ago. Now let me turn to our balance sheet.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

We completed the March with a cash balance of $169,400,000 compared to $182,600,000 at the end of last quarter. Net trade receivables increased by $8,600,000 sequentially. Day sales outstanding were eleven days for the quarter compared to twelve days for the prior quarter. Net inventory increased by $4,400,000 quarter over quarter. Average days in inventory remained at one hundred and twenty nine days for the quarter.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

CapEx for the quarter was $8,100,000 compared to $7,400,000 for the prior quarter. We expect CapEx for the June to range from $12,000,000 to $14,000,000 Now I would like to discuss June guidance. We expect revenue to be approximately $170,000,000 plus or minus $10,000,000. GAAP gross margin to be 22.9% plus or minus 1%. We anticipate the non GAAP gross margin to be 24 plus or minus 1%.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

GAAP operating expenses to be $47,100,000 plus or minus $1,000,000. Non GAAP operating expenses are expected to be $40,200,000 plus or minus $1,000,000. Interest expense to be approximately equal to interest income and income tax expense to be in the range of $900,000 to $1,100,000. With that, we'll open up the call for questions. Operator, please start the q and a session.

Operator

Our first question is from David Williams with Benchmark. Your line is now open.

David Williams
Equity Research Analyst at The Benchmark Company LLC

Hey, good afternoon. Thanks for taking my question and certainly congrats on the good quarter here. I guess, maybe, Stephen, I missed a little bit of beginning of the call there. But I wanted to see if you could help kind of quantify the magnitude of the pull ins that you discussed on the PC side and maybe also talk about any of the graphics cards success that you've had this quarter and how you're kinda thinking about that going forward. Thanks.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Sure. So for the first part of the question about the pull ins, certainly, we did see some increased demand because customers are trying to take advantage of the current situation of the tariffs. And this is more pronounced especially in the computing segments, particularly the with our notebook shipments. So normally, the March is a down season and this will and this was, you know, muted somewhat, but because of the the tariff and the pull ins from some of our PC customers. To quantify that, I think, you know, we we beat the midpoint by, you know, by about $6,000,000.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

It's just maybe a a half of that could come from the notebook increase. It's it's and we also can expect to see that going into the June as well. And regarding the our graphics business, and we are excited to be taking part in selling into this the new versions of both graphics cards as well as the AI accelerated cards. We, you know, we we already started shipping at the end of last year, and we continue to ship at the beginning this year and going throughout this year. And this portion, I think we are encouraged by what we see, and we our customers are pulling products.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

They are getting GPU allocation, and they are shipping out. So we're we're glad to take a part of that.

David Williams
Equity Research Analyst at The Benchmark Company LLC

Great. Certainly great color there. And then maybe secondly, can you kind of help us kind of understand the tariff impact to you all? Just kind of given where your manufacturing is and your presence there, how much of your product or sales do you think come back into The U. S?

David Williams
Equity Research Analyst at The Benchmark Company LLC

And maybe is there any way to kind of size the that that tariff impact overall from outside of what the demand could be, but just your direct impact?

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Okay. Sure. Obviously, this is a very dynamic and challenging and evolving issue for us, also for the semiconductor industry and and and for the overall macro economy. Tariffs definitely created a lot of unknowns. There are direct impact and the indirect impact.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Our direct exposure to tariffs so far is only very limited, you know, as our shipments into The US are minimal. So indirect impact on the overall demand for end products and devices remains to be seen. It's not that clear at this point. We are monitoring the situation, ensuring full compliance in multiple countries, areas so that we can make adjustment quickly in response to regulatory developments. So we we we are also working closely with our customers to minimize any disruptions and and and so that we can meet their supply requirements.

David Williams
Equity Research Analyst at The Benchmark Company LLC

Great. And then just one last one for me, if possible. But I know that next quarter, talked about the licensing revenue, net engineering services falling off. And I know that was expected to be kind of a margin impact, but you're guiding margin up here sequentially. And is that just a function of the higher revenue base?

David Williams
Equity Research Analyst at The Benchmark Company LLC

Or what is it that's helping you lift that margin? And how sticky and sustainable is that should we expect the margin to incrementally improve as we see that top line grow as well?

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Sure. And for the June margin guidance and, you know, we factor in better product mix and, you know, so far we saw them. And also we expect a higher utilization at our factories. So both factors contributed to the margin rebound.

David Williams
Equity Research Analyst at The Benchmark Company LLC

Thank you.

Operator

We have a question from Jeremy Kwan with Stifel. Your line is now open.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Yes. Good afternoon and congrats on a very solid quarter and outlook, especially in this environment. Maybe a quick follow-up on the tariff question. Just looking at your China JV, is it fair to say that the vast majority of that production is for use within China or even all of it? And can you remind us again how much, the JV, you know, what percent of your wafer requirements is sourced out of your China JV?

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Sure. Yeah. JV is right now, it's accounted for about 20% also of our total supply. So right now, you know, under the current regulations and then policies and yet their impact from tariffs and kind of a minimum to us.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Got it. And and just following up on the utilization question, can you remind us where you are currently and, you know, both internally with in in your Oregon fab and also at the JV?

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

JV, you know, we don't we don't count them as our internal capacity. You know, we treated them as one of our suppliers. For us, internally, overall, utilization, it is around 80% to 90% range, so on an overall basis. And also, we still have additional external capacities, you know, to support our business.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Can you comment further on that? Have you developed additional foundry partners? And and, you know, what kind of additional capacity is available to you at the JV?

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Sure. Yeah. We have been developing third party boundaries and then then, you know, during the last few years, yeah, we'll continue to do that. Yeah. That wouldn't add a capacity even to support our next year's expected growth.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

So no one mapping out in those capacity requirements right now. In terms of JV, yeah, they still have additional capacity if we need it to to support us.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Great. And a question on the first, congrats on the very solid cash flow. Looks like it was about $70,000,000 if you exclude the customer deposit repayments. Can you talk about what kind of cash flow dynamics you expect as we move throughout the year? And also on the CapEx side, I know you mentioned, I think it was 12,000,000 to 14,000,000 next quarter.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Can you just give us a sense of where that might land for the full calendar year 2025? Thank you.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Sure. Overall, cash flow, I would expect that, yeah, it's kind of stable, you know, for us at this point. You know, overall, next quarter, we expect to pay only 2 or $3,000,000 on customer deposits and that and then for the whole year, we still have about $16,000,000 to go and, you know, the for the June quarter, September quarter, and December quarter. In terms of overall, then I I mean, this right now, we don't see, you know, whole lot of issues So we're generally targeting 6% to 8% of our revenue.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

So this year could be around $40,000,000 to $50,000,000 ish. So this CapEx and I mean, from quarter to quarter could fluctuate. So last two or three quarters, we were running around 7 or $8,000,000. So next quarter, we expect, like, 12,000,000 to $14,000,000 or so. So by and large, no one still within our overall target.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Got it. And and maybe one last question before I jump back in the queue later. Can you give us an update on the pricing environment, and maybe a quick update also on the competitive landscape? I know you, in the past, have talked about local suppliers, kind of increasingly at the low end. Any kind of detail, you can provide would be great.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

And especially, you know, pricing in in as it relates to, yeah, just just, you know, where where you see things going over the next maybe six to twelve months. Thank you.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Okay. Sure. ASP erosion on the same product basis for the March was tracking toward historical trend line. So the overall, we saw increased competition from all players in the I mean, big or small. So overall, then, you know, what we want to do is to roll out our new products to provide a better performance and and more functionalities and to reset the ASP.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

So then that's the name of the game. So then we'll continue to do that.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Got it. Thank you very much.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Thank you.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Thanks.

Operator

We have a follow-up from Jeremy Kwong. Your line is now open.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Thank you. I guess I could stay down. Maybe a follow-up on the AI accelerated cards. It sounds like that's going to be a pretty nice opportunity for you guys, and there could be potential to expand into other opportunities. And and can you just give us a little bit more color into whether these are you know, do you have any visibility to whether these are associated with, you know, any specific hyperscalers or AI providers in in particular?

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

And also, you know, yeah, what kind of new opportunities are you looking at? Is it more accelerated cards, or is it, you know, different kind of, I guess, architectural designs that you can talk about? Thank you.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Sure. So, the near term, growth that we see was has been in the AI accelerated cards. And and just a reminder, again again, we're selling a total solution here including a multi phase controller along with a power stage and actually quite a number of power stages per GPU. There is a wider range of of graphics slash AI accelerated cards, from low end cost effective ones to high performance cards. And we are we are servicing the whole whole array of that.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

And, you know, we I don't know we don't know exactly where it's going into in terms of the end end customer, but I can say that, you know, our our products are shipping into various performance products for our our direct customer. And we do expect that that's going to continue to grow. I think the ramp up is still continuing to happen. We are guiding that it will grow further going into the June and hopefully more after that as well too. And but it didn't stop there.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

You know, our that's our initial growth for this year will be coming from the graphics side, but we're also working on getting into the data center side. In this earnings release, we did mention that we did win achieve a design design win on one data center application. And, this is something that will, that we we already started shipping in this second quarter in this sorry. In this June. And, and we are hoping to also to get on to more programs beyond that.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

So that portion, I think, is just starting, and, you know, we're hoping to be able to expand into more programs after that.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Got it. And is this for, you know, both the onboard power as well as the, I guess, the what it's called, the backplane power, the the 48 volts or the the higher voltage power coming in the data center?

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Right now, it's mainly the, still the low voltage solutions powering directly powering the, the GPU. So we're talking about the, again, the multiphase controller coupled, with, multiple power stages.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Got it. And that goes for your data center side as well that that you mentioned.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Yes. Except that

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

the accounts Okay. Yeah. Except that the accounts for the power stages go up even higher because of the higher performance.

Jeremy Kwan
Jeremy Kwan
Associate Vice President - Equity Research at Stifel Financial Corp

Got it. Great. Thank you very much.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Thank you.

Operator

There are no additional questions at this time, so I'll pass it back to the team for any closing remarks.

Steven Pelayo
Managing Director at The Blueshirt Group

Okay, great. This is Steve Pileo. Before we conclude, I'd like to just briefly mention two upcoming events the management team will be in, and they will be available for one on one meetings at the B. Riley twenty fifth Annual Institutional Investor Conference on May 21 in Marina Del Rey, California and the Stifel twenty twenty five Cross Sector Insight Conference on June 4 in Boston, Massachusetts. If you wish to request a meeting, contact the institutional sales representative at each of the sponsoring banks.

Steven Pelayo
Managing Director at The Blueshirt Group

This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to talking to you again next quarter. Take care now.

Stephen Chang
Stephen Chang
CEO & Director at Alpha and Omega Semiconductor

Thank you.

Yifan Liang
CFO & Corporate Secretary at Alpha and Omega Semiconductor

Thank you.

Operator

That concludes today's call. Thank you all for your participation. You may now disconnect your line.

Executives
    • Stephen Chang
      Stephen Chang
      CEO & Director
Analysts
    • Steven Pelayo
      Managing Director at The Blueshirt Group
    • Yifan Liang
      CFO & Corporate Secretary at Alpha and Omega Semiconductor
    • David Williams
      Equity Research Analyst at The Benchmark Company LLC
    • Jeremy Kwan
      Associate Vice President - Equity Research at Stifel Financial Corp
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Key Takeaways

  • Alpha and Omega reported Q3 revenue of $164.6M with a 22.5% non-GAAP gross margin and a non-GAAP EPS loss of $0.10, marking a 9.7% year-over-year revenue increase but a 4.9% sequential decline as licensing revenues wound down.
  • The Computing segment grew nearly 15% year-over-year—driven by record tablet demand, notebook pull-ins ahead of tariffs, and robust graphics/AI accelerated card shipments—and is expected to deliver mid-single-digit sequential growth and over 15% annual gains in the June quarter.
  • Management forecasts June quarter revenue of approximately $170M ± $10M, a non-GAAP gross margin of 24% ± 1%, and low- to mid-single-digit sequential revenue growth once discontinued licensing revenue is excluded.
  • AOS is advancing its transformation into a total solutions provider, leveraging new design wins in data center power applications to increase BOM content, expand market share, and mitigate macroeconomic and geopolitical uncertainties.
AI Generated. May Contain Errors.
Earnings Conference Call
Alpha and Omega Semiconductor Q3 2025
00:00 / 00:00

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