ALPHA & OMEGA SEMICONDUCTOR Ltd Q1 FY2025 earnings call

• Delivered fiscal Q1 revenue ($181.9 million) and EPS ($0.21) in line with guidance, with non-GAAP gross margin at 25.5%. • Saw broad-based demand with sequential growth in major segments, with relative strength in Computing (PC desktops, notebooks, servers), Consumer (gaming, wearables), Communications (Tier 1 U.S. smartphone customer), and Power Supply and Industrial (AC-DC power supplies, quick chargers). • Transitioning from component supplier to total solutions provider, leveraging strengths in high performance silicon packaging and intelligent ICs, with opportunities in advanced computing, smartphones, solar, e-mobility, etc. • Provided segment-specific updates and next quarter guidance.

Computing: September quarter revenue up 8.6% year-over-year and 6.6% sequentially, representing 42% of total revenue. Consumer: September quarter revenue up 2% year-over-year and 12.4% sequentially, representing 17.4% of total revenue. Communications: September quarter revenue up 14.2% year-over-year and 29.4% sequentially, representing 19.5% of total revenue. Power Supply and Industrial: Accounted for 17.5% of total revenue, down 23.7% year-over-year but up 15.6% sequentially.

• December quarter revenue expected to be approximately $170 million plus or minus $10 million. • GAAP gross margin forecasted at 24% plus or minus 1%, non-GAAP gross margin at 25% plus or minus 1%. • GAAP operating expenses in the range of $45 million plus or minus $1 million, non-GAAP operating expenses in the range of $38.8 million plus or minus $1 million. • Interest expense expected to be approximately equal to interest income, income tax expense in the range of $1 million to $1.2 million.

• Competitive landscape with increased competition as firms seek to fill fabs and return to previous markets. • Market volatility and seasonality impacting revenue and margins. • Pricing pressure due to softer market recovery and competitors shifting toward consumer-related markets.

Q: How is the competitive landscape in the graphics card side?

A: Stephen mentions upcoming transition for leading customer, expecting less competition in graphics and add-in cards side, but more competition in datacenter.

Q: Seasonality in Communications segment?

A: Stephen clarifies consumer segment has a low double-digits sequential decline, not Communications.

Q: Pricing and competition?

A: Yifan notes increased pricing pressure due to softer market recovery and competitors shifting, and plans to accelerate new product rollout.

Q: JV and capacity?

A: Yifan states JV is raising additional funds, fab utilization around 80% with capacity to support growth.