Alpha & Omega Semiconductor Ltd (AOSL) Q4 2024 Earnings Call Highlights: Steady Revenue and ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $161.3 million, up 7.5% sequentially, flat year-over-year.

  • Non-GAAP Gross Margin: 26.4%, compared to 25.2% last quarter and 28.5% a year ago.

  • Non-GAAP EPS: $0.09, compared to a $0.04 loss per share last quarter and $0.19 earnings per share a year ago.

  • Operating Cash Flow: $7.1 million, including $4.5 million repayment of customer deposits.

  • DMOS Revenue: $102.1 million, up 8.8% sequentially and 6.7% year-over-year.

  • Power IC Revenue: $52.7 million, up 5.5% sequentially, down 10.5% year-over-year.

  • Non-GAAP Operating Expenses: $39.3 million, compared to $38.9 million last quarter and $39.1 million a year ago.

  • Cash Balance: $175.1 million, compared to $174.4 million last quarter.

  • CapEx: $7.2 million, compared to $7.4 million last quarter.

  • September Quarter Revenue Guidance: Approximately $180 million, plus or minus $10 million.

  • September Quarter Non-GAAP Gross Margin Guidance: 26.4%, plus or minus 1%.

Release Date: August 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Alpha & Omega Semiconductor Ltd (NASDAQ:AOSL) delivered fiscal Q4 results in line with guidance for revenue and gross margin, with revenue at $161.3 million and non-GAAP gross margin at 26.4%.

  • Sequential growth was observed in major segments such as tablets, AI, graphics cards, gaming, and home appliances, indicating a broad-based recovery.

  • The company is transitioning from a component supplier to a total solutions provider, leveraging strengths in high-performance silicon and advanced packaging.

  • AOSL is poised for growth with a diversified product portfolio addressing a broadening array of end markets, including AI, digitalization, and electrification.

  • The company has a strong cash position with a balance of $175.1 million, and a decrease in net inventory by $2.3 million quarter-over-quarter, indicating efficient inventory management.

Negative Points

  • The PC segment is taking longer to recover than originally expected, impacting overall growth.

  • Non-GAAP operating expenses increased slightly quarter-over-quarter due to higher professional fees.

  • Revenue for the consumer segment was down 35.5% year-over-year, despite a sequential increase.

  • Power supply and industrial segment revenue was down 33.7% year-over-year, indicating challenges in these areas.

  • Operating cash flow decreased significantly from $28.2 million in the prior quarter to $7.1 million, reflecting a repayment of customer deposits.

Q & A Highlights

Q: Can you provide insights into the potential growth and content opportunities in graphics cards and datacenter accelerators? A: Stephen Chang, CEO: Our entry into AI programs builds on our existing graphics card business. AI accelerator cards require more power stages, increasing from 9-16 in graphics cards to up to 50 in AI cards. We are already shipping solutions for current platforms and are working on transitioning to new platforms launching soon. This segment is expected to grow earlier due to our established presence.

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