Alpha and Omega Semiconductor Limited earnings

Management highlights

- Delivered fiscal Q3 revenue slightly above midpoint of guidance, with strength in advanced computing offsetting softness in PC markets. - Strategy to become application-specific total solutions provider is executing well, with progress in advanced computing. - Active expansion of medium voltage capacity to support growth in advanced computing. - Using levers like improved product mix, total solutions approach, and disciplined R&D investment to protect growth. - Segment results and guidance for next quarter discussed, including expectations for computing, consumer, communications, and power supply and industrial segments

Guidance

- Expect revenue for June quarter to be approximately $168 million plus or minus $10 million. - Gap gross margin expected to be 22.3% plus or minus 1%. - Non-GAAP growth margin anticipated to be 23% plus or minus 1%. - GAAP operating expenses expected to be $52 million plus or minus $1 million. - Non-GAAP operating expenses expected to be $45.5 million plus or minus $1 million. - Interest income to be $1 million higher than interest expense. - Income tax expense in range of $1 million to $1.2 million

Segment performance

Computing: March quarter revenue was up 2.1% year-over-year and down 0.1% sequentially, representing 49.1% of total revenue. Advanced computing, including AI servers and graphics cards, showed strong growth, with advanced computing representing 25% of the computing segment. Consumer: March quarter revenue was down 9.8% year over year and up 0.8% sequentially, representing 11.8% of total revenue. Communications: March quarter revenue was up 18.7% year-over-year and up 1.9% sequentially, representing 20.6% of total revenue. Power supply and industrial: Accounted for 17.4% of total revenue, down 13.1% year-over-year and up 5.3% sequentially

Risks & headwinds

- Memory supply constraints and price pressures represent headwinds for second half of calendar 2026. - Rising memory pricing could impact overall smartphone demand, particularly in price sensitive segments and regions. - Uncertainty in PC market with industry forecasts revised lower

Analyst Q&A

• Q: Regarding gross margin and advanced computing revenue, how to square gross margin with data center/AI opportunities.

  A: Driving margin improvement through advanced solutions like medium voltage MOSFETs in data center applications, which have decent margin and higher than some PowerIC products.

• Q: Growth opportunity in advanced computing segment, where it could grow and mix.

  A: Becoming sizable portion of computing segment, expected to continue growing, with R&D investment in high-performance solutions for AI.

• Q: Capacity expansion for medium voltage side, where is it.

  A: Mix of internal and external capacity, investing internally and diversifying supply chain.

• Q: Memory supply constraint impact on PC and smartphone segments.

  A: PC customers trimming bill forecasts, smartphone business more resilient in premium side due to increasing charging currents.

• Q: Sequential gross margin recovery in June quarter, drivers.

  A: Half due to utilization improvement, half due to improved product mix.

• Q: Pricing side, marketplace and opportunity.

  A: Slower ASP erosion than December quarter, counting on product mix improvement and new product development.

• Q: Progress in total solutions approach, where along roadmap.

  A: Clear difference in products and customer base compared to few years ago, investing to accelerate, part of path to billion dollar milestone.

• Q: Strength in compute segment, subcomponents and year's linearity.

  A: Growth in advanced computing (ai server, graphics, medium voltage solutions) offsetting challenges in PC and graphics, expecting momentum to continue.

• Q: Rising input costs impact and mitigation.

  A: Seeing some increases in input costs, managing product mix and pricing environment, already reflected in June quarter guidance