Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 31, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | |||
Entity Registrant Name | ALPHA & OMEGA SEMICONDUCTOR Ltd | ||
Entity Central Index Key | 0001387467 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 24,519,530 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Public Float | $ 195 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 121,893 | $ 131,535 |
Restricted cash | 364 | 189 |
Accounts receivable, net | 24,296 | 33,755 |
Inventories | 111,643 | 90,182 |
Other current assets | 37,102 | 29,551 |
Total current assets | 295,298 | 285,212 |
Property, plant and equipment, net | 409,737 | 331,656 |
Intangible assets, net | 16,882 | 16,591 |
Deferred income tax assets | 4,822 | 4,892 |
Restricted cash - long-term | 2,038 | 0 |
Other long-term assets | 10,617 | 28,698 |
Total assets | 739,394 | 667,049 |
Current liabilities: | ||
Accounts payable | 94,384 | 92,661 |
Accrued liabilities | 44,075 | 49,841 |
Income taxes payable | 1,541 | 2,211 |
Short-term debt | 26,609 | 3,811 |
Deferred margin | 0 | 1,665 |
Capital leases | 11,355 | 4,491 |
Total current liabilities | 177,964 | 154,680 |
Long-term debt | 59,380 | 26,786 |
Income taxes payable - long-term | 993 | 924 |
Deferred income tax liabilities | 466 | 713 |
Capital leases - long-term | 43,381 | 56,791 |
Other long-term liabilities | 13,921 | 993 |
Total liabilities | 296,105 | 240,887 |
Commitments and contingencies (Note 13) | ||
Preferred shares, par value $0.002 per share: | ||
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2019 and 2018 | 0 | 0 |
Common shares, par value $0.002 per share: | ||
Authorized: 100,000 shares; issued and outstanding: 31,163 shares and 24,517 shares, respectively at June 30, 2019 and 30,400 shares and 23,860 shares, respectively at June 30, 2018 | 62 | 61 |
Treasury shares at cost; 6,646 shares at June 30, 2019 and 6,540 shares at June 30, 2018 | (66,240) | (64,790) |
Additional paid-in capital | 234,410 | 220,244 |
Accumulated other comprehensive income (loss) | (2,693) | 440 |
Retained earnings | 125,485 | 122,639 |
Total Alpha and Omega Semiconductor Limited shareholders’ equity | 291,024 | 278,594 |
Noncontrolling interest | 152,265 | 147,568 |
Total equity | 443,289 | 426,162 |
Total liabilities and equity | $ 739,394 | $ 667,049 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 08, 2017 | Nov. 07, 2017 |
Common shares, par value (in dollars per share) | $ 0.002 | $ 0.002 | ||
Common shares, authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 31,163,000 | 30,400,000 | ||
Common stock, shares outstanding (in shares) | 24,517,000 | 23,860,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.002 | $ 0.002 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||
Treasury shares (in shares) | 6,646,000 | 6,540,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 450,920 | $ 421,553 | $ 383,337 |
Cost of goods sold | 335,542 | 309,625 | 291,516 |
Gross profit | 115,378 | 111,928 | 91,821 |
Operating expenses: | |||
Research and development | 46,431 | 37,344 | 29,835 |
Selling, general and administrative | 75,967 | 66,164 | 48,842 |
Total operating expenses | 122,398 | 103,508 | 78,677 |
Operating income (loss) | (7,020) | 8,420 | 13,144 |
Interest income and other income (loss), net | 543 | (1,943) | (141) |
Interest expense | (6,905) | (821) | (91) |
Net income (loss) before income taxes | (13,382) | 5,656 | 12,912 |
Income tax expense | 1,256 | 708 | 3,652 |
Net income (loss) including noncontrolling interest | (14,638) | 4,948 | 9,260 |
Net loss attributable to noncontrolling interest | (16,499) | (9,315) | (4,569) |
Net income attributable to Alpha and Omega Semiconductor Limited | $ 1,861 | $ 14,263 | $ 13,829 |
Net income per common share attributable to Alpha and Omega Semiconductor Limited | |||
Basic (in dollars per share) | $ 0.08 | $ 0.60 | $ 0.59 |
Diluted (in dollars per share) | $ 0.08 | $ 0.57 | $ 0.56 |
Weighted average number of common share attributable to Alpha and Omega Semiconductor Limited used to compute net income per share: | |||
Basic (in shares) | 24,063 | 23,901 | 23,526 |
Diluted (in shares) | 24,698 | 24,844 | 24,826 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) including noncontrolling interest | $ (14,638) | $ 4,948 | $ 9,260 |
Other comprehensive loss, net of tax, foreign currency translation adjustment | (5,937) | 244 | (1,012) |
Comprehensive income (loss) | (20,575) | 5,192 | 8,248 |
Noncontrolling interest | (19,303) | (9,205) | (5,118) |
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited | $ (1,272) | $ 14,397 | $ 13,366 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total AOS Shareholders' Equity | Convertible Preferred Shares [Member] | Common Shares [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 242,039 | ||||||||
Balance (in shares) at Jun. 30, 2016 | 0 | ||||||||
Balance (in shares) at Jun. 30, 2016 | 28,405,000 | ||||||||
Balance (in shares) at Jun. 30, 2016 | (5,651,000) | ||||||||
Balance at Jun. 30, 2016 | $ 242,142 | $ 0 | $ 57 | $ (50,199) | $ 191,444 | $ 769 | $ 100,071 | $ (103) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of common stock options and release of RSUs (in shares) | 1,015,000 | ||||||||
Exercise of common stock options and release of RSUs | 7,790 | 7,790 | $ 2 | 7,788 | |||||
Reissuance of Treasury Stock (in shares) | 43,000 | ||||||||
Reissuance of Treasury Stock | 372 | 372 | $ 363 | 9 | |||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (112,000) | ||||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (2,071) | (2,071) | (2,071) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 292,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | $ 2,537 | 2,537 | $ 0 | 2,537 | |||||
Repurchase of common shares under shares repurchase program (in shares) | 0 | ||||||||
Share-based compensation expense | $ 6,634 | 6,634 | 6,634 | ||||||
Net loss | 13,829 | 13,829 | 13,829 | ||||||
Cumulative translation adjustment | (463) | (463) | |||||||
Balance (in shares) at Jun. 30, 2017 | 0 | ||||||||
Balance (in shares) at Jun. 30, 2017 | 29,600,000 | ||||||||
Balance (in shares) at Jun. 30, 2017 | (5,608,000) | ||||||||
Balance at Jun. 30, 2017 | 270,770 | $ 0 | $ 59 | $ (49,836) | 206,332 | 306 | 113,909 | 27,779 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to noncontrolling interest | (4,569) | (4,569) | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (549) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (1,012) | ||||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 33,000 | 33,000 | |||||||
Net income (loss) including noncontrolling interest | 9,260 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 298,549 | ||||||||
Exercise of common stock options and release of RSUs (in shares) | 645,000 | ||||||||
Exercise of common stock options and release of RSUs | 1,544 | 1,544 | $ 1 | 1,543 | |||||
Reissuance of Treasury Stock (in shares) | 18,000 | ||||||||
Reissuance of Treasury Stock | 91 | 91 | $ 144 | (53) | |||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (145,000) | ||||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (2,363) | (2,363) | (2,363) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 300,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | $ 3,321 | 3,321 | $ 1 | 3,320 | |||||
Repurchase of common shares under shares repurchase program (in shares) | (950,046) | (950,000) | |||||||
Repurchase of common shares under shares repurchase program | $ (15,098) | (15,098) | $ (15,098) | ||||||
Share-based compensation expense | 11,412 | 11,412 | 11,412 | ||||||
Net loss | 14,263 | 14,263 | 14,263 | ||||||
Impact on retained earnings related to ASC 606 adoption | Accounting Standards Update 2016-16 | $ 5,480 | 5,480 | 5,480 | ||||||
Cumulative translation adjustment | 134 | 134 | |||||||
Balance (in shares) at Jun. 30, 2018 | 0 | 0 | |||||||
Balance (in shares) at Jun. 30, 2018 | 30,400,000 | 30,400,000 | |||||||
Balance (in shares) at Jun. 30, 2018 | (6,540,000) | (6,540,000) | |||||||
Balance at Jun. 30, 2018 | $ 278,594 | 278,594 | $ 0 | $ 61 | $ (64,790) | 220,244 | 440 | 122,639 | 147,568 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to noncontrolling interest | (9,315) | (9,315) | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 110 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 244 | ||||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 128,994 | 128,994 | |||||||
Net income (loss) including noncontrolling interest | 4,948 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 426,162 | ||||||||
Exercise of common stock options and release of RSUs (in shares) | 616,000 | ||||||||
Exercise of common stock options and release of RSUs | 110 | 110 | $ 1 | 109 | |||||
Reissuance of Treasury Stock (in shares) | 6,000 | ||||||||
Reissuance of Treasury Stock | 0 | 0 | $ 51 | (51) | |||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (182,000) | ||||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (2,028) | (2,028) | (2,028) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 329,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | $ 2,908 | 2,908 | $ 0 | 2,908 | |||||
Repurchase of common shares under shares repurchase program (in shares) | (111,509) | (112,000) | |||||||
Repurchase of common shares under shares repurchase program | $ (1,501) | (1,501) | $ (1,501) | ||||||
Share-based compensation expense | 13,177 | 13,177 | 13,177 | ||||||
Net loss | 1,861 | 1,861 | 1,861 | ||||||
Impact on retained earnings related to ASC 606 adoption | Accounting Standards Update 2016-16 | $ 1,036 | 1,036 | 1,036 | ||||||
Cumulative translation adjustment | (3,133) | (3,133) | |||||||
Balance (in shares) at Jun. 30, 2019 | 0 | 0 | |||||||
Balance (in shares) at Jun. 30, 2019 | 31,163,000 | 31,163,000 | |||||||
Balance (in shares) at Jun. 30, 2019 | (6,646,000) | (6,646,000) | |||||||
Balance at Jun. 30, 2019 | $ 291,024 | $ 291,024 | $ 0 | $ 62 | $ (66,240) | $ 234,410 | $ (2,693) | $ 125,485 | 152,265 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss attributable to noncontrolling interest | (16,499) | (16,499) | |||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (2,804) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (5,937) | ||||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 24,000 | $ 24,000 | |||||||
Net income (loss) including noncontrolling interest | (14,638) | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 443,289 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | |||
Net income (loss) including noncontrolling interest | $ (14,638) | $ 4,948 | $ 9,260 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 32,038 | 29,419 | 27,188 |
Share-based compensation expense | 13,177 | 11,412 | 6,634 |
Deferred income taxes, net | (452) | (2,244) | 7,224 |
(Gain) loss on disposal of property and equipment | 21 | 45 | (425) |
Changes in assets and liabilities: | |||
Accounts receivable | 9,237 | (5,345) | (1,816) |
Inventories | (21,461) | (13,928) | (7,406) |
Other current and long-term assets | (1,887) | (34,625) | (4,584) |
Accounts payable | 6,410 | 4,872 | 4,515 |
Income taxes payable | (601) | 466 | (1,264) |
Accrued and other liabilities | 9,577 | 8,460 | 3,322 |
Net cash provided by operating activities | 31,421 | 3,480 | 42,648 |
Cash flows from investing activities | |||
Purchases of property and equipment excluding JV Company | (36,002) | (49,390) | (30,799) |
Purchases of property and equipment in JV Company | (76,049) | (128,359) | (16,052) |
Purchases of land use rights in JV Company | 0 | 0 | (8,737) |
Purchases of intangible assets | (405) | (16,384) | 0 |
Proceeds from sale of property and equipment | 21 | 6 | 603 |
Investment in a privately held company | 0 | 0 | (600) |
Net cash used in investing activities | (112,435) | (194,127) | (55,585) |
Cash flows from financing activities | |||
Proceeds from investment by noncontrolling interest | 24,000 | 128,994 | 33,000 |
Withholding tax on restricted stock units | (2,028) | (2,363) | (2,071) |
Proceeds from exercise of stock options and ESPP | 3,018 | 4,956 | 10,699 |
Proceeds from borrowings | 77,949 | 30,950 | 0 |
Proceeds from financing lease | 0 | 60,416 | 0 |
Payments for repurchase of common shares | (1,501) | (15,098) | 0 |
Repayments of borrowings | (21,947) | (74) | 0 |
Principal payments on capital leases | (4,392) | (828) | (819) |
Net cash provided by financing activities | 75,099 | 206,953 | 40,809 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,514) | (511) | 95 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (7,429) | 15,795 | 27,967 |
Cash, cash equivalents and restricted cash at beginning of year | 131,724 | 115,929 | 87,962 |
Cash, cash equivalents and restricted cash at end of year | 124,295 | 131,724 | 115,929 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 6,582 | 700 | 70 |
Cash paid for income taxes | 1,841 | 2,985 | 2,550 |
Supplemental disclosures of non-cash investing and financing information: | |||
Property and equipment purchased but not yet paid | 58,877 | 68,156 | 23,155 |
Property and equipment acquired under capital leases but not yet paid | 0 | 0 | 0 |
Reissuance of treasury stock | $ 51 | $ 53 | $ (9) |
The Company and Significant Acc
The Company and Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Significant Accounting Policies | The Company and Significant Accounting Policies The Company Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”, "AOS", "we" or "us") design, develop and supply a broad range of power semiconductors. The Company's portfolio of products targets high-volume applications, including personal computers, flat panel TVs, LED lighting, smart phones, battery packs, quick chargers, home appliances, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. The Company conducts its operations primarily in the United States of America (“USA”), Hong Kong, China, and South Korea. Basis of Preparation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest after elimination of inter-company balances and transactions. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets. Foreign Currency Transactions and Translation Most of the Company's principal subsidiaries use U.S. dollars as their functional currency because their transactions are primarily conducted and settled in U.S. dollars. All of their revenues and a significant portion of their operating expenses are denominated in U.S. dollars. The functional currencies for the Company's in-house packaging and testing facilities in China are U.S. dollars, and a majority of their capital expenditures are denominated in U.S. dollars. Foreign currency transactions are translated into the functional currencies using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses, resulting from the settlement of such transactions and from the re-measurement of monetary assets and liabilities denominated in foreign currencies using exchange rates at balance sheet date and non-monetary assets and liabilities using historical exchange rates, are recognized in the consolidated statements of operations. For the Company's subsidiaries which use the local currency as their functional currency, including a Joint Venture Company ("JV Company"), their results and financial position are translated into U.S. dollars using exchange rates at balance sheet dates for assets and liabilities and using average exchange rates for income and expenses items. The resulting translation differences are presented as a separate component of accumulated other comprehensive income (loss) and noncontrolling interest in the consolidated statements of equity. Joint Venture On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture, (the “JV Company”), for the purpose of constructing and operating a power semiconductor packaging, testing and 12-inch wafer fabrication facility in the Liangjiang New Area of Chongqing, China (the “JV Transaction”). As of June 30, 2019 , the Company owns 51% , and the Chongqing Funds own 49% , of the equity interest in the JV Company. The Joint Venture is accounted under the provisions of the consolidation guidance since the Company has controlling financial interest. If both parties agree that the termination of the JV Company is the best interest of each party or the JV Company is bankrupt or insolvent where either party may terminate early, after paying the debts of the JV Company, the remaining assets of the JV Company shall be paid to the Chongqing Funds to cover the principal of its total paid-in contributions plus interest at 10% simple annual rate prior to distributing the balance of the JV Company's assets to the Company. The JV Company started its assembly and testing production in the September quarter of 2018 and continued its ramp up during the fiscal year 2019. The Company also completed installation of equipment and trial production at the 12-inch wafer fabrication facility in fiscal year 2019. In July 2019, the Company commenced limited mass production at the 12-inch wafer fabrication facility. As part of the JV Transaction, the JV Company entered into an Engineering, Procurement and Construction Contract (the “EPC Contract”) with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited (the “Contractor”), effective as of January 10, 2017 (the "Effective Date"), pursuant which the Contractor was engaged to construct the manufacturing facility contemplated under the JV Agreement. The total price payable under the EPC Contract is Chinese Renminbi (RMB) 540.0 million , or approximately $78.0 million based on the currency exchange rate between RMB and U.S. Dollar on the Effective Date. As of June 30, 2019, the JV Company paid approximately $69.9 million (RMB 480.0 million ), and expects to pay the remaining of $8.7 million (RMB 60.0 million ) in the near term. Restricted cash As a condition of the loan arrangements, the Company is required to keep a compensating balance at the issuing bank (see Note 6). The balance has been excluded from the Company’s cash and cash equivalents balance and is classified as restricted cash - long-term in the Company’s consolidated balance sheets. As of June 30, 2019 and 2018, the amount of restricted cash was $2.0 million and $0 , respectively. Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on hand and short-term bank deposits with original maturities of three months or less. Cash equivalents are highly liquid investments with stated maturities of three months or less as of the dates of purchase. The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities. Cash and cash equivalents are maintained with reputable major financial institutions. If, due to current economic conditions or other factors, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk. Deposits with these banks may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk. Accounts Receivable The allowance for doubtful accounts is based on assessment of the collectability of accounts receivable from customers. The Company reviews the allowance by considering factors such as historical collection experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. The Company writes off a receivable and charges against its recorded allowance when it has exhausted its collection efforts without success. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Fair Value of Financial Instruments The fair value of cash equivalents is based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure and terms of the debts. Inventories The Company carries inventories at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Cost includes semiconductor wafer and raw materials, labor, depreciation expenses and other manufacturing expenses and overhead, and packaging and testing fees paid to third parties if subcontractors are used. Inventory reserves are made based on the Company's periodic review of inventory quantities on hand as compared with its sales forecasts, historical usage, aging of inventories, production yield levels and current product selling prices. If actual market conditions are less favorable than those forecasted by management, additional future inventory write-downs may be required that could adversely affect the Company's operating results. Inventory reserves once established are not reversed until the related inventory has been sold or scrapped. Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditures that are directly attributable to the acquisition of the items and the costs incurred to make the assets ready for their intended use. Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 to 30 years Manufacturing machinery and equipment 5 to 15 years Equipment and tooling 5 years Computer hardware and software 3 to 5 years Office furniture and equipment 5 years Leasehold and building improvements 2 to 20 years Land use rights 50 years There is no private land ownership in China. Individuals and companies are permitted to acquire land use rights for specific purpose. In March 2017, the JV Company received the necessary land use right certificate from the PRC government. The land use rights will expire on November 30, 2066. Equipment and construction in progress represent equipment received but the necessary installation has not been fully performed or building construction and leasehold improvements have been started but not yet completed. Equipment and construction in progress are stated at cost and transferred to respective asset class when fully completed and ready for their intended use. Internal-use software development costs are capitalized to the extent that the costs are directly associated with the development of identifiable and unique software products controlled by the Company that will probably generate economic benefits beyond one year. Costs incurred during the application development stage are required to be capitalized. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Costs include employee costs incurred and fees paid to outside consultants for the software development and implementation. Internal developed software is amortized over its estimated useful life of three to five years starting from the date when it is ready for its intended use. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized as selling, general and administrative expenses in the consolidated statements of operations. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Intangible Assets Intangible assets are stated at cost less accumulated amortization. Intangible assets primarily include patents and exclusive technology rights that the Company entered a license agreement with STMicroelectronices International N.V. ("STMicro"). The Company begins amortizing such license fees when the technology has met its qualification and is ready for intended use in production. The Company evaluates its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and fair value less costs to sell. There was no indication of intangible assets impairment for the fiscal year of 2019 , 2018 and 2017 . Impairment of Long-Lived Assets The Company evaluates the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying value of the asset may be impaired. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. Such an impairment charge would be measured as the excess of the carrying value of the asset over its fair value. There was no impairment of long-lived assets for the fiscal year of 2019 , 2018 and 2017 . Revenue Recognition As a result of the adoption of the new revenue standard on July 1, 2018, at the beginning of the first quarter of fiscal year 2019, the Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied. The Company recognizes revenue when product is shipped to the customer, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets. Packaging and testing services revenue is recognized upon shipment of serviced products to the customer. Product Warranty The Company provides a standard one-year warranty for the products from the date of purchase by the end customers. The Company accrues for estimated warranty costs at the time revenue is recognized. The Company's warranty obligation is affected by product failure rates, labor and material costs for replacing defective parts, related freight costs for failed parts and other quality assurance costs. The Company monitors its product returns for warranty claims and maintains warranty reserves based on historical experiences and anticipated warranty claims known at the time of estimation. Shipping and Handling Costs Shipping and handling costs are included in cost of goods sold. Research and Development Research and development costs are expensed as incurred. Provision for Income Taxes Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and experimentation tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. The Company considers all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. The Company considers evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income. The Financial Accounting Standards Board, or FASB, issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result. The Company's provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties. Share-based Compensation Expense The Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-Carol pricing model. The fair value of stock options is estimated on the date of grant using the Black-Scholes option valuation model. Share-based compensation expense is recognized on the accelerated attribution basis over the requisite service period of the award, which generally equals the vesting period. The Employee Share Purchase Plan (the "ESPP") is accounted for at fair value on the date of grant using the Black-Scholes option valuation model. Advertising Advertising expenditures are expensed as incurred. Advertising expense was $0.6 million , $0.4 million and $0.4 million in the fiscal years ended June 30, 2019 , 2018 , and 2017 , respectively. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Leases Leases entered into by the Company as a lessee are classified as capital or operating leases. Leases that transfer to the Company substantially the entire risks and benefits incidental to ownership are classified as capital leases. At the inception of a capital lease, an asset and an obligation are recorded at an amount equal to the lesser of the present value of the minimum lease payments and the asset’s fair market value at the beginning of each lease. Rental payments under operating leases are expensed as incurred. The Company will recognize leases in accordance with Accounting Standards Update (ASU) 842 "Leases" beginning on July 1, 2019. Both finance and operating leases will result in the recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. Risks and Uncertainties The Company is subject to certain risks and uncertainties. The Company believes changes in any of the following areas could have a material adverse effect on the Company's future financial position or results of operations or cash flows: new product development, including market receptiveness, operation of in-house manufacturing facilities, litigation or claims against the Company based on intellectual property, patent, product regulatory or other factors, competition from other products, general economic conditions, the ability to attract and retain qualified employees, the ability to successfully operate joint venture and ultimately to sustain profitable operations, and ability to diversify products and develop digital business. Additional risks and uncertainties that the Company is unaware of, or that the Company currently believes are not material, may also become important factors that adversely affect its business. The semiconductor industry is characterized by rapid technological change, competition, competitive pricing pressures and cyclical market patterns. The Company's financial results are affected by a wide variety of factors, including general economic conditions specific to the semiconductor industry and the Company's particular market, such as the personal computing (PC) markets, the timely implementation of new products, new manufacturing process technology and the ability to safeguard patents and intellectual property in a rapidly evolving market. In addition, the semiconductor market has historically been cyclical and subject to significant economic downturns. As a result, the Company may experience significant period-to-period fluctuations in operating results due to the factors mentioned above or other factors. The Company's business model allocates its wafer manufacturing requirements to both in-house capacity and selected third-party foundries. The Company also deploys and implements its proprietary power discrete processes and equipment at third-party foundries to maximize the performance and quality of its products. The Company's revenue may be impacted by its ability to obtain adequate wafer supplies from third-party foundries and utilize wafer production and packaging and testing capacity from its in-house facilities. Currently the Company's main third-party foundry is Shanghai Hua Hong Grace Electronic Company Limited, or HHGrace, located in Shanghai, China. HHGrace has been manufacturing wafers for the Company since 2002. HHGrace manufactured approximately 14.1% , 15.4% and 18.6% of the wafers used in the Company's products for the fiscal years ended June 30, 2019 , 2018 and 2017 , respectively. Although the Company believes that its volume of production allows the Company to secure favorable pricing and priority in allocation of capacity in its third-party foundries, if the foundries' capacities are constrained due to market demands, HHGrace, together with other foundries from which the Company purchases wafers, may not be willing or able to satisfy all of the Company's manufacturing requirements on a timely basis and/or at favorable prices. The Company is also subject to the risks of service disruptions and raw material shortages by its foundries. Such disruptions, shortages and price increases could harm the Company's operating results. In addition, manufacturing facilities' capacity affects the Company's gross margin because the Company has certain fixed costs associated with its Oregon fab and the JV Company, as well as in-house packaging and testing facilities. If the Company fails to utilize its manufacturing facilities' capacity at a desirable level, its financial condition and results of operations will be adversely affected. Recent Accounting Pronouncements Recently Issued Accounting Standards not yet adopted In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-15 “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15”). These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contact with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. ASU 2018-15 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13”). ASU 2018-13 amends existing fair value measurement disclosure requirements by adding, changing, or removing certain disclosures. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. ASU No. 2018-13 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In June 2018, the FASB issued ASU 2018-07, "Compensation -Stock Compensation: Improvement to Nonemployees Share-Based Payment Accounting ("ASU 2018-07"), which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, with early adoption permitted, but no earlier than our adoption of ASC 606. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses ("ASU 2016-13"). This accounting standard update changes the accounting for recognizing impairments of financial assets. Under the update, credit losses for certain types of financial instruments will be estimated based on expected losses. The update also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, "Leases ("ASU 2016-02"). This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The Company will adopt this standard in the first quarter of fiscal year of 2020, using the modified retrospective transition method and will not restate comparative periods. The Company will also elect to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. The key change that will affect the Company relates to its accounting for operating leases for which the Company are the lessee that were historically off-balance sheet. While the Company is currently evaluating the impact the pronouncement will have on its consolidated balance sheet and related disclosures, the Company expects that most of its operating lease commitments will be subject to the new standard and will result in the recognition of right-of-use assets and lease liabilities on its consolidated balanc |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding, plus potential shares of common stock during the period. Potential shares of common stock include dilutive shares attributable to the assumed exercise of share options, ESPP shares and vesting of RSUs using the treasury stock method and contingent issuances of common shares related to convertible preferred shares, if dilutive. Under the treasury stock method, potential common shares outstanding are not included in the computation of diluted net income per share if their effect is anti-dilutive. The following table presents the calculation of basic and diluted net income per share attributable to common shareholders: Year Ended June 30, 2019 2018 2017 (in thousands, except per share data) Numerator: Net income attributable to Alpha and Omega Semiconductor Limited $ 1,861 $ 14,263 $ 13,829 Denominator: Basic: Weighted average number of common shares used to compute basic net income per share 24,063 23,901 23,526 Diluted: Weighted average number of common shares used to compute basic net income per share 24,063 23,901 23,526 Effect of potentially dilutive securities: Stock options, RSUs and ESPP shares 635 943 1,300 Weighted average number of common shares used to compute diluted net income per share 24,698 24,844 24,826 Net income per share attributable to Alpha and Omega Semiconductor Limited: Basic $ 0.08 $ 0.60 $ 0.59 Diluted $ 0.08 $ 0.57 $ 0.56 The following potential dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive: Year Ended June 30, 2019 2018 2017 (in thousands) Employee stock options and RSUs 593 186 105 ESPP 512 182 19 Total potential dilutive securities 1,105 368 124 |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Impact from the Adoption of the New Revenue Standard: On July 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to all contracts. Results for reporting periods beginning after July 1, 2018 were presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. The change for the Company under ASC 606 relates to the timing of revenue recognition with two U.S.-based distributors. Sales to these distributors are governed under terms of agreements providing extended price protection and other return rights. The Company recorded a net increase to opening retained earnings of $1.0 million as of July 1, 2018 due to the cumulative impact of adopting ASC 606, with a corresponding $1.6 million decrease in deferred margin, a $0.2 million decrease in accounts receivables, a $0.1 million increase in current accrued liabilities, and a $0.3 million increase in deferred tax liabilities. Effective July 1, 2018, the Company recognized revenue at the time of shipment or delivery to these two distributors, adjusted for estimates of the price adjustments and return rights based on historical data and other available information. Based on the Company's assessment, only minimal changes were required to the Company's existing policies, processes, and controls to support the standard's measurement and disclosure requirements. The following tables compare the amounts reported in the condensed consolidated statements of income and condensed consolidated balance sheet to the amounts had the previous revenue recognition guidance been in effect: As of June 30, 2019 As Reported Adjustment Balances Without Adoption (in thousands) Accounts receivable, net $ 24,296 $ 210 $ 24,506 Accrued liabilities $ 44,075 $ (78 ) $ 43,997 Deferred margin $ — $ 1,879 $ 1,879 Income taxes payable $ 1,541 $ (59 ) $ 1,482 Deferred income tax liabilities $ 466 $ (302 ) $ 164 Retained earnings $ 125,485 $ (1,231 ) $ 124,254 Year Ended June 30, 2019 As Reported Adjustment Balances Without Adoption (in thousands) Revenue $ 450,920 $ (583 ) $ 450,337 Cost of goods sold $ 335,542 $ (302 ) $ 335,240 Gross profit $ 115,378 $ (281 ) $ 115,097 Income tax expense $ 1,256 $ (59 ) $ 1,197 Net loss including noncontrolling interest $ (14,638 ) $ (222 ) $ (14,860 ) New Revenue Recognition Policy Including Significant Judgments and Estimates As a result of the adoption of the new revenue standard on July 1, 2018, beginning with the first quarter of fiscal year 2019, the Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied. The Company has written contracts with a combination of agreements and purchase orders with all customers including certain general terms and conditions. Often purchase orders entail merchandises, quantities and prices, which define the performance obligations of each party and are approved or accepted by the Company. The Company’s contracts with customers do not typically include extended payment terms. Payment terms vary by contract type and type of customer and generally range from 30 to 60 days. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Transfer of control typically occurs at the time of shipment or at the time the product is pulled from consignment as that is the point at which delivery has occurred, title and the risks and rewards of ownership have passed to the customers, and the Company has a right to payment. Packaging and testing services revenue is recognized upon shipment of serviced products to the customer. The majority of the Company’s total revenue is from non-U.S. distributors and direct customers, which is recognized at the time of shipment or delivery to distributors and direct customers. Accordingly, revenue recognition with these distributors and direct customers remains unchanged upon adoption of ASC 606. As noted above, the change for the Company under ASC 606 relates to the timing of revenue recognition with two U.S.-based distributors. Sales to these distributors are governed under the terms of agreements providing extended price protection and other return rights, and were historically deferred under the previous accounting guidance until the related product was sold to end customers. Under ASC 606, the transaction price takes into consideration the effect of variable consideration such as price adjustments and return rights, which are estimated and recorded at the time the goods are delivered. Because all of the Company’s performance obligations relate to contracts with a duration of less than one year, the Company elected to apply the optional exemption practical expedient provided in ASC 606 and, therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The Company adjusts the transaction price for variable consideration. Variable consideration primarily represents adjustments related to stock rotation rights and price adjustments provided to our distributors. As a practical expedient, the Company recognizes the incremental costs of obtaining a contract, specifically commission expenses that have a period of benefit of less than twelve months, as an expense when incurred. Additionally, the Company has adopted an accounting policy to recognize shipping costs that occur after control transfers to the customer as a fulfillment activity. The Company warrants its products to be free of defects generally for a period of one year. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of goods sold. Warranty expenses and the accrued warranty liability were not material as of June 30, 2019 . The following table presents the Company's revenue information by geographical location based on the country or region to which the products were shipped. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company's distributors sell their products to end customers which may have a global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets. The revenue by geographical location in the following tables is based on the country or region in which the products were shipped to: Year Ended June 30, 2019 2018 2017 (in thousands) Hong Kong $ 355,058 $ 340,178 $ 315,223 China 81,955 71,213 59,360 South Korea 2,590 1,061 1,505 United States 7,015 5,658 4,037 Other countries 4,302 3,443 3,212 $ 450,920 $ 421,553 $ 383,337 The following is a summary of revenue by product type: Year Ended June 30, 2019 2018 2017 (in thousands) Power discrete $ 371,837 $ 342,148 $ 288,788 Power IC 70,215 67,083 82,389 Packaging and testing services 8,868 12,322 12,160 $ 450,920 $ 421,553 $ 383,337 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts receivable June 30, 2019 2018 (in thousands) Accounts receivable $ 48,401 $ 52,687 Less: Allowance for price adjustments (24,075 ) (18,902 ) Less: Allowance for doubtful accounts (30 ) (30 ) Accounts receivable, net $ 24,296 $ 33,755 Inventories June 30, 2019 2018 (in thousands) Raw materials $ 59,076 $ 47,097 Work in-process 38,214 35,243 Finished goods 14,353 7,842 $ 111,643 $ 90,182 Other current assets: June 30, 2019 2018 (in thousands) VAT receivable $ 30,769 $ 17,601 Other prepaid expenses 2,745 2,121 Prepaid insurance 939 906 Prepaid maintenance 481 556 Prepayments to supplier 583 227 Prepaid income tax 267 761 Customs deposit 114 5,749 Lease financing cost 825 960 Other receivables 379 670 $ 37,102 $ 29,551 Property, plant and equipment, net June 30, 2019 2018 (in thousands) Land $ 4,877 $ 4,877 Building 36,205 4,325 Manufacturing machinery and equipment 303,750 265,192 Equipment and tooling 20,739 16,605 Computer equipment and software 34,048 25,686 Office furniture and equipment 3,243 2,314 Leasehold improvements 53,597 29,900 Land use rights 8,760 9,089 465,219 357,988 Less: accumulated depreciation (252,982 ) (225,184 ) 212,237 132,804 Equipment and construction in progress 197,500 198,852 Property, plant and equipment, net $ 409,737 $ 331,656 Total depreciation expense was $31.9 million , $29.2 million and $27.2 million for fiscal year 2019 , 2018 and 2017 , respectively. The gross amount of computer software recorded under capital leases was $13.7 million and $8.2 million and the related accumulated depreciation was $8.2 million and $7.3 million , respectively, at June 30, 2019 and 2018 . The Company capitalized $ 0.8 million , $ 0.3 million and 0.2 million of software development costs during the fiscal year 2019 , 2018 and 2017 , respectively. Amortization of capitalized software development costs was $ 0.5 million in fiscal year 2019 , and $0.6 million in each of the fiscal year 2018 and 2017 , respectively. Unamortized capitalized software development costs in each of the periods presented at June 30, 2019 and 2018 were $ 0.9 million and $ 0.7 million , respectively. There is no private land ownership in China. Individuals and companies are permitted to acquire land use rights for specific purpose. In March 2017, the JV Company received the necessary land use right certificate from the PRC government. The land use rights will expire on November 30, 2066. Other long-term assets June 30, 2019 2018 (in thousands) Prepayments for property and equipment $ 4,846 $ 17,599 Investments in privately held companies 700 700 Lease financing costs 1,758 1,922 VAT long-term receivable — 3,396 Customs deposit 980 1,589 Other long-term deposits 889 2,252 Office leases deposits 1,031 853 Other 413 387 $ 10,617 $ 28,698 Intangible assets, net June 30, 2019 2018 (in thousands) Patents and technology rights $ 18,037 $ 17,633 Trade name 268 268 Customer relationships 1,150 1,150 19,455 19,051 Less: accumulated amortization (2,842 ) (2,729 ) 16,613 16,322 Goodwill 269 269 Intangible assets, net $ 16,882 $ 16,591 The carrying value of goodwill was $0.3 million for fiscal years 2019 , 2018 and 2017 . Intangible assets of patents and technology rights are primarily related to a license agreement that the Company entered into with STMicroelectronics International N.V. (“STMicro”) on September 5, 2017, pursuant to which STMicro granted the Company a world-wide, royalty-free and fully-paid license to use its technologies to develop, market and distribute certain digital multi-phase controller products, which have been offered by STMicro. This agreement allows the Company to develop and market products in a new market, primarily in the computer server segment. Under the license agreement, the Company agreed to pay a total price in cash of $17.0 million based on the payment schedule of approximately $10.1 million , $6.7 million , and $0.2 million in calendar year 2017, 2018 and 2019, respectively. As of June 30, 2019 , the Company recorded $16.2 million of intangible assets related to STMicro. The Company begins amortizing such license fees when the technology has met the Company's qualification. Amortization expense for intangible assets was $113,000 , $76,000 and $2,000 for the years ended June 30, 2019 , 2018 and 2017 , respectively. Estimated future minimum amortization expense of intangible assets is as follows (in thousands): Year ending June 30, 2020 $ 925 2021 3,360 2022 3,360 2023 3,286 2024 3,249 Thereafter 2,433 $ 16,613 Accrued liabilities June 30, 2019 2018 (in thousands) Accrued compensation and benefits $ 16,385 $ 18,484 Warranty accrual 623 535 Stock rotation accrual 1,921 1,750 Accrued professional fees 1,721 1,922 Accrued inventory 857 667 Accrued facilities related expenses 4,233 2,163 Accrued financing lease costs 728 1,510 Accrued property, plant and equipment 11,527 18,145 Other accrued expenses 6,080 4,665 $ 44,075 $ 49,841 The activity in the warranty accrual, included in accrued liabilities is as follows: Year Ended June 30, 2019 2018 2017 (in thousands) Beginning balance $ 535 $ 1,866 $ 1,495 Addition 236 (147 ) 1,476 Released — (1,000 ) (580 ) Utilization (148 ) (184 ) (525 ) Ending balance $ 623 $ 535 $ 1,866 The activity in the stock rotation accrual, included in accrued liabilities is as follows: Year Ended June 30, 2019 2018 2017 (in thousands) Beginning balance $ 1,750 $ 1,871 $ 1,988 Addition 5,267 2,714 4,819 Utilization (5,096 ) (2,835 ) (4,936 ) Ending balance $ 1,921 $ 1,750 $ 1,871 Deferred margin Deferred margin consists of the following: June 30, 2019 2018 (in thousands) Deferred revenue $ — $ 2,555 Deferred costs — (890 ) Deferred margin $ — $ 1,665 Other long-term liabilities: June 30, June 30, (in thousands) Deferred rent $ 65 $ 238 Customer deposits 10,000 * — Computer software liabilities 3,701 — Other 155 755 Other long-term liabilities $ 13,921 $ 993 * Customer deposit from our customer A and customer B for securing future shipment from the Company |
Concentration of Credit Risk an
Concentration of Credit Risk and Significant Customers | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers. Credit sales, which are mainly on credit terms of 30 to 60 days , are only made to customers who meet the Company's credit standards, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its financial assets to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available. Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts: Year Ended June 30, Percentage of revenue 2019 2018 2017 Customer A 28.8 % 28.3 % 26.9 % Customer B 36.4 % 35.2 % 35.8 % Customer C * * 10.6 % June 30, Percentage of accounts receivable 2019 2018 Customer A 12.1 % 17.1 % Customer B 19.7 % 35.5 % Customer C 18.1 % 10.6 % Customer D 13.3 % * * Less than 10% |
Bank borrowings
Bank borrowings | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Bank borrowings | Short-term borrowing On March 21, 2019, the JV Company entered into a one-year loan agreement with China Everbright Bank in China to provide a loan for Chinese Renminbi (RMB) 20 million , or $3.0 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2019 at fixed interest rate of 5.44% per annum. Interest payments are due monthly with the entire principal due on March 21, 2020. As of June 30, 2019 , the outstanding balance under the loan was 20 million RMB (equivalent of $2.9 million based on the currency exchange rate as of June 30, 2019 ). On November 29 and December 4, 2018, the JV Company entered into two one-year loan agreements with China Merchant Bank in China to provide loans for RMB 80 million and 20 million , respectively, or $14.5 million in total based on currency exchange rate between RMB and U.S. Dollar on December 31, 2018 at varying interest rates. Interest payments are due monthly and quarterly with the entire principal due not later than December 18 and December 5, 2019, respectively. As of June 30, 2019 , the outstanding balances under the loans were 80 million RMB and 20 million (equivalent of $14.6 million in total based on the currency exchange rate as of June 30, 2019 ). On November 16, 2018, the Company's subsidiary in China entered into a line of credit facility with Industrial and Commercial Bank of China, which expires on September 30, 2019. The purpose the credit facility is to provide short-term borrowings. The Company can borrow up to approximately RMB 72.0 million or $10.3 million based on currency exchange rate between RMB and U.S. Dollar on November 16, 2018. In November 2018 and April, 2019, the Company borrowed $5.0 million and $10.5 million , respectively under this line with an interest rate of 3.64% and 4.57% , per annum, respectively. The amount of $5.0 million and $10.5 million were repaid in December 2018 and June 2019. As of June 30, 2019 , there was no outstanding balance under the line of credit. Credit Facilities On May 9, 2018 (the “Effective Date”), the JV Company entered into a lease finance agreement and a security agreement (the “Agreements”) with YinHai Leasing Company and China Import/Export Bank (the “Lenders”). Pursuant to the Agreements, the Lenders agree to provide an aggregate of Chinese Renminbi (RMB) 400.0 million , or $62.8 million based on the currency exchange rate between RMB and U.S. Dollar on the Effective Date, of financing to the JV Company (the “Lease Financing”). In exchange for the Lease Financing, the JV Company agrees to transfer title of its assembly and testing equipment to the Lenders, and the Lenders lease such equipment to the JV Company under a five-year lease arrangement, pursuant to which the JV Company makes quarterly lease payments to the Lenders consisting of principal and interest based on a repayment schedule mutually agreed by the parties. The interest under the Lease Financing is accrued based on the China Base Rate multiplied by 1.15 , or 5.4625% on the Effective Date. Under the Agreements, at the end of the five-year lease term, the Lenders agree to sell such equipment back to the JV Company for a nominal amount (RMB 1 ). The JV Company’s obligations under the Lease Financing are secured by the land and building owned by the JV Company (the “Collateral”). The proceeds from the Lease Financing will be used primarily for the acquisition and installation of the 12-inch fabrication equipment and other expenses of the JV Company relating to the completion of the fabrication facility located in Chongqing. The Agreements contain customary representation, warranties and covenants, including restrictions on the transfer of the Collateral. The Agreements also contain customary events of default, including but are not limited to, failure to make payments and breach of material terms under the Agreements. The Agreements include certain customary closing conditions, including the payment of deposit by the JV Company. As of June 30, 2019 , the outstanding balance of the Lease Financing of 376.0 million RMB (equivalent of $54.7 million based on the currency exchange rate as of June 30, 2019 ) was recorded under short-term and long-term capital lease liabilities. Capital leases Capital lease liabilities include the following: June 30, 2019 2018 (in thousands) Financing lease $ 54,736 $ 60,416 Computer software — 843 Exclusive technology rights — 23 54,736 61,282 Less: current portion (11,355 ) (4,491 ) Capital leases - long-term portion $ 43,381 $ 56,791 The computer software and exclusive technology rights under capital leases were included in property, plant and equipment and intangible assets, respectively. Future minimum lease payments at June 30, 2019 are as follows (in thousands): Year ending June 30, 2020 $ 14,219 2021 17,799 2022 16,928 2023 12,269 Total minimum lease payments 61,215 Less amount representing interest (6,479 ) Total capital lease liabilities $ 54,736 Long-term debt On March 12, 2019, the JV Company entered into a loan agreement with The Export-Import Bank of China in the aggregate principal amount of 200 million RMB (approximately $29.8 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2019). The loan will mature on February 20, 2025. The JV Company drew down 190 million RMB (approximately $28.3 million based on the currency exchange rate between RMB and U.S. Dollar on March 31, 2019) in March 2019. The loan withdraw window will expire on February 28, 2020. The interest is accrued based on the China Base Rate multiplied by 1.1 , or 5.39% on March 12, 2019. The loan requires quarterly interest payments. The principal payments are required to pay every 6 months over the term of loan commencing in October 2019. The obligation under this loan agreement is secured by the buildings and certain equipment owned by the JV Company. As a condition of the loan arrangements, 14 million RMB (approximately $2.0 million ) of cash is held as restricted cash by the JV Company as a compensating balance at the JV Company's bank until the principal is paid off. As of June 30, 2019 , the outstanding balance of the loan was 190 million RMB (equivalent of $27.7 million based on the currency exchange rate as of June 30, 2019 ). On May 1, 2018, our Oregon subsidiary, Jireh Semiconductor Incorporated (“Jireh”) entered into a loan agreement with the Bank that provided a term loan in an amount of $17.8 million . The obligation under the loan agreement is secured by certain real estate assets of Jireh and guaranteed by the Company. The loan has a five-year term and matures on June 1, 2023. Beginning June 1, 2018, Jireh shall make consecutive monthly payments of principal and interest to the Bank. The outstanding principal shall accrue interest at a fixed rate of 5.04% per annum on the basis of a 360-day year. The loan agreement contains customary restrictive covenants and includes certain financial covenants that require the Company to maintain, on a consolidated basis, specified financial ratios. The Company was in compliance with these covenants. As of June 30, 2019 , the outstanding balance of the term loan was $16.8 million . On August 15, 2017, Jireh entered into a credit agreement with a financial institution (the “Bank”) that provided a term loan in an amount up to $30.0 million for the purpose of purchasing certain equipment for our fabrication facility located in Oregon. The obligation under the credit agreement is secured by substantially all assets of Jireh and guaranteed by the Company. The credit agreement has a five -year term and matures on August 15, 2022. In January 2018 and July 2018, Jireh drew down on the loan in the amount of $13.2 million and $16.7 million , respectively. Beginning in October 2018, Jireh is required to pay to the Bank on each payment date, the outstanding principal amount of the loan in monthly installments. The monthly loan interest is based on an adjusted London Interbank Offered Rate ("LIBOR") as defined in the credit agreement, plus specified applicable margin in the range of 1.75% to 2.25% , based on the outstanding balance of the loan. The credit agreement contains customary restrictive covenants and includes certain financial covenants that require the Company to maintain, on a consolidated basis, specified financial ratios and fixed charge coverage ratio. The Company was in compliance with these covenants. As of June 30, 2019 , the outstanding balance of the term loan was $24.2 million . At June 30, 2019 , maturities of short-term debt and long-term debt were as follows (in thousands): Year ending June 30, 2020 $ 26,682 2021 9,796 2022 15,036 2023 22,725 2024 6,696 Thereafter 5,242 Total principal of debt 86,177 Less: debt issuance costs (188 ) Total principal of debt, less debt issuance costs $ 85,989 Short-term Debt Long-term Debt Principal amount $ 26,682 $ 59,495 Less: debt issuance costs (73 ) (115 ) Total debt, less debt issuance costs $ 26,609 $ 59,380 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Shares On November 8, 2017, the shareholders of the Company approved the Company to increase the authorized number of common shares from 50,000,000 shares to 100,000,000 shares with par value of $0.002 . Each common share is entitled to one vote. The holders of common shares are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors in accordance with the Company's Bye-laws. No dividends had been declared as of June 30, 2019 . In September 2017, the Board of Directors approved a repurchase program (the “Repurchase Program”) that allowed the Company to repurchase its common shares from the open market pursuant to a pre-established Rule 10b5-1 trading plan or through privately negotiated transactions up to an aggregate of $30.0 million . The amount and timing of any repurchases under the Repurchase Program depend on a number of factors, including but not limited to, the trading price, volume and availability of the Company's common shares. Shares repurchased under this program are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company's stock-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses is charged to retained earnings. During fiscal years 2019 and 2018 , the Company repurchased an aggregate of 111,509 shares and 950,046 shares, respectively, from the open market for a total cost of approximately $1.5 million and $15.1 million, excluding fees and related expenses, at an average price of $13.43 and $15.86 per share, respectively. During fiscal year 2017, the Company did not repurchase any shares pursuant to the repurchase program. As of June 30, 2019 , the Company had repurchased an aggregate of 6,784,648 shares for a total cost of $67.3 million, at an average price of $9.92 per share, excluding fees and related expenses, since inception of the program. No repurchased shares have been retired. Of the 6,784,648 repurchased shares, 138,828 shares with a weighted average repurchase price of $10.41 per share, were reissued at an average price of $5.55 per share for option exercises and vested restricted stock units ("RSU"). As of June 30, 2019 , $13.4 million remain available under the share repurchase program. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Share-based Compensation 2018 Omnibus Incentive Plan The 2009 Share Option/Share Issuance Plan (the “2009 Plan”) was approved in September 2009 at the annual general meeting of shareholders in connection with the Company's IPO. At the annual general meeting of shareholders in November 2018, the 2009 Plan was approved to be terminated and the 2018 Omnibus Incentive Plan (the "2018 Plan") was effective. No further awards will be made under the 2009 Plan. The 2018 Plan authorized the board of directors to grant incentive share options, non-statutory share options and restricted shares to employees, directors, non-employee directors and consultants of the Company and its subsidiaries for up to 1,265,000 common shares. The 2018 Plan does not include an evergreen authorization, therefore the Company is not permitted to increase the number of shares reserved in the share pool without obtaining further shareholder approval. Outstanding shares under the 2018 Plan and awards granted under the 2009 Plan that expire, are forfeited or cancelled or terminate prior to the issuance of the shares subject to those awards or are settled in cash will be available for subsequent issuance under the 2018 Plan. As of June 30, 2019 , 733,821 shares were available for grant under the 2018 Plan. Beginning with the 2014 Annual Shareholders Meeting, on the date of each annual shareholders meeting, each individual who commences service as a non-employee Board member by reason of his or her election to the Board at such annual meeting and each individual who is to continue to serve as a non-employee Board member, whether or not that individual is standing for re-election to the Board at that particular annual meeting, will automatically be granted an award in the form of restricted share units ("RSU") covering that number of common shares determined by dividing ninety-five thousand dollars ( $95,000 ) by the average fair market value per share for the ninety (90)-day period preceding the grant date. Under the 2018 Plan, incentive share options and RSU are to be granted at a price that is not less than 100% and nonstatutory share options are to be granted at not less than 85% of the fair value of the common shares, at the date of grant for employees and consultants. Options and RSUs generally vest over a four -year to five -year period, and are exercisable for a maximum period of ten years after the date of grant. The fair value of RSU, including time-based restricted stock units and performance-based restricted stock units is based on the market price of the Company's share on the date of grant. Time-based Restricted Stock Units ("TRSU") The following table summarizes the Company's TRSU activities: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Aggregate Intrinsic Value Nonvested at June 30, 2016 933,063 $ 9.18 1.73 $ 12,997,568 Granted 446,719 $ 18.26 Vested (364,567 ) $ 8.34 Forfeited (40,850 ) $ 12.74 Nonvested at June 30, 2017 974,365 $ 13.51 1.68 $ 16,244,748 Granted 482,397 $ 16.46 Vested (468,051 ) $ 13.24 Forfeited (69,688 ) $ 14.25 Nonvested at June 30, 2018 919,023 $ 15.14 1.62 $ 13,086,888 Granted 527,022 $ 11.28 Vested (499,954 ) $ 13.09 Forfeited (39,750 ) $ 13.82 Nonvested at June 30, 2019 906,341 $ 14.09 1.62 $ 8,465,225 Performance-based Restricted Stock Units ("PRSU") In March 2019, 2018 and 2017, the Company granted 291,750 , 298,050 and 170,000 PRSUs to its certain personnel. The number of shares to be ultimately earned under the PRSU is determined based on the level of attainment of predetermined financial goals. The PRSU vests in four equal annual installments from the first anniversary date after the grant date if certain predetermined financial goals were met. During fiscal year 2019, 295,300 shares related to PRSUs granted in fiscal year 2018 were earned. During fiscal year 2018, 153,000 shares related to PRSUs granted in fiscal year 2017 were earned. The Company recorded approximately $2.8 million , $1.9 million and $0.5 million of expenses for these PRSUs during the years ended June 30, 2019 , 2018 and 2017 , respectively. The following table summarizes the Company's PRSU activities: Number of Performance-based Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Aggregate Intrinsic Value Nonvested at June 30, 2016 — $ — — $ — Granted 170,000 $ 17.58 Vested — $ — Forfeited — $ — Nonvested at June 30, 2017 170,000 $ 17.58 2.21 $ 2,833,900 Granted 298,050 $ 16.22 Vested (38,247 ) $ 17.58 Forfeited (7,503 ) $ 17.26 Nonvested at June 30, 2018 422,300 $ 16.63 2.06 $ 6,013,552 Granted 291,750 $ 11.18 Vested (111,623 ) $ 16.68 Forfeited (5,703 ) $ 16.78 Nonvested at June 30, 2019 596,724 $ 13.95 1.88 $ 5,573,402 Market-based Restricted Stock Units ("MSUs") During the quarter ended September 30, 2018, the Company granted 1.3 million market-based restricted stock units ("MSUs") to certain personnel. The number of shares to be earned at the end of performance period is determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2019 to December 31, 2021 as well as the recipients remaining in continuous service with the Company through such period. The MSUs vest in four equal annual installments after the end of performance period. The Company estimated the grant date fair values of its MSUs with derived service periods of 4.5 to 7.5 years using a Monte-Carlo simulation model with the following assumptions: Risk-free interest rate of 2.7% , expected term of 3.5 years, expected volatility of 38.8% and dividend yield of 0% . The Company recorded approximately $0.4 million of expense for these MSUs during the year ended June 30, 2019 . The following table summarizes the Company's MSUs activities: Number of Performance-based Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Nonvested at June 30, 2018 — $ — — Granted 1,310,000 $ 5.17 Vested — $ — Forfeited (20,000 ) $ 5.17 Nonvested at June 30, 2019 1,290,000 $ 5.17 4.97 MSUs vested and expected to vest 948,998 4.97 Stock Option The following table summarizes the Company's stock option activities: Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Aggregate Shares Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2016 1,859,260 $ 11.37 4.71 Granted — $ — Exercised (693,393 ) $ 11.76 $ 5,681,783 Canceled or forfeited (112,500 ) $ 12.72 Outstanding at June 30, 2017 1,053,367 $ 10.98 4.43 Granted — $ — Exercised (166,389 ) $ 11.00 $ 959,257 Canceled or forfeited — $ — Outstanding at June 30, 2018 886,978 $ 10.97 4.03 Granted — $ — Exercised (10,500 ) $ 10.50 $ 43,415 Canceled or forfeited — $ — Outstanding at June 30, 2019 876,478 $ 10.98 3.06 $ 758,871 Options vested and expected to vest 876,478 $ 10.98 3.06 $ 758,871 Exercisable at June 30, 2019 876,478 $ 10.98 3.06 $ 758,871 The aggregate intrinsic value for options outstanding at June 30, 2019 in the table above is based on the Company’s common stock closing price on June 30, 2019 . Information with respect to stock options outstanding and exercisable as of June 30, 2019 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted-Average Weighted-Average Number Weighted-Average $7.21 - $7.21 6,875 4.58 $ 7.21 6,875 $ 7.21 $7.44 - $7.44 331,139 4.71 $ 7.44 331,139 $ 7.44 $7.56 - $9.90 195,150 3.71 $ 8.93 195,150 $ 8.93 $10.50 - $15.00 178,314 1.30 $ 13.45 178,314 $ 13.45 $17.90 - $18.00 165,000 0.83 $ 17.99 165,000 $ 17.99 $7.21 - $18.00 876,478 3.06 $ 10.98 876,478 $ 10.98 The 2018 Employee Share Purchase Plan At the annual general meeting of shareholders in November 2018, the 2018 Employee Share Purchase Plan ("Purchase Plan" or "ESPP") Plan was approved, under which 1,430,000 common shares are available for issuance. The ESPP Plan does not include an evergreen authorization, therefore the Company is not permitted to increase the number of shares reserved in the share pool without obtaining further shareholder approval. The Purchase Plan provided for a series of overlapping offering periods with a duration of 24 months, generally beginning on May 15 and November 15 of each year. The Purchase Plan allows employees to purchase common shares through payroll deductions of up to 15% of their eligible compensation. Such deductions will accumulate over a six-month accumulation period without interest. After such accumulation period, common shares will be purchased at a price equal to 85% of the fair market value per share on either the first day of the offering period or the last date of the accumulation period, whichever is less. The maximum number of shares that may be purchased by a participant on any purchase date may not exceed 875 shares for a total of 3,500 shares per a 24 -month offering period. In addition, no participant may purchase more than $25,000 worth of common stock in any one calendar year period. No more than 200,000 common shares may be purchased by all participants on any purchase date. The ESPP is compensatory and results in compensation expense. The fair values of common shares to be issued under the ESPP were determined using the Black-Scholes option pricing model with the following assumptions: Year Ended June 30, 2019 2018 2017 Volatility rate 40.1% - 40.7% 42.1% - 45.3% 39.1% - 44.7% Risk-free interest rate 2.1% - 2.9% 1.4% - 2.6% 0.6% - 1.3% Expected term 1.3 years 1.3 years 1.3 years Dividend yield —% —% —% The weighted-average estimated fair value of employee stock purchase rights granted pursuant to the ESPP during the years ended June 30, 2019 , 2018 and 2017 was $3.84 , $5.81 and $6.11 per share, respectively. Share-based Compensation Expenses The total share-based compensation expense related to TRSU, PSUs, MSUs, stock options and ESPP described above, recognized in the consolidated statements of operations for the years presented was as follows: Year Ended June 30, 2019 2018 2017 (in thousands) Cost of goods sold $ 1,963 $ 1,641 $ 1,041 Research and development 2,453 1,855 1,361 Selling, general and administrative 8,761 7,916 4,232 $ 13,177 $ 11,412 $ 6,634 Total unrecognized share-based compensation expense as of June 30, 2019 was $13.7 million including estimated forfeitures, which is expected to be recognized over a weighted-average period of 2.0 years. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company maintains a 401(k) retirement plan for the benefit of qualified employees in the U.S. Employees who participate may elect to make salary deferral contributions to the plan up to 100% of the employees' eligible salary subject to annual Internal Revenue Code maximum limitations. The employer's contribution is discretionary. The Company had not made any contributions for eligible employees as of June 30, 2019 . The Company makes mandatory contributions for its employees to the respective local governments in terms of retirement, medical insurance and unemployment insurance, where applicable, according to labor and social security laws and regulations of the countries and areas in which the Company operates. The retirement contribution rate is 7.7% in the U.S., 12.0% to 20.0% in China, and 6.0% in Taiwan. The Company has no obligations for the payment of such social benefits beyond the required contributions as set out above. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is comprised of: Year Ended June 30, 2019 2018 2017 (in thousands) U.S. federal taxes: Current $ (57 ) $ 55 $ 1,043 Deferred (510 ) (1,943 ) (325 ) Non-U.S. taxes: Current 1,765 2,898 (4,615 ) Deferred 55 (298 ) 7,548 State taxes, net of federal benefit: Current 3 (4 ) 1 Total provision for income taxes $ 1,256 $ 708 $ 3,652 The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows (in percentage): Year Ended June 30, 2019 2018 2017 United States statutory rate 21.0 % 28.1 % 34.0 % Stock-based compensation 0.1 (1.4 ) (0.4 ) Foreign taxes, net (40.9 ) 39.5 (0.7 ) Research and development credit 11.7 (17.1 ) (4.9 ) Non-deductible expenses (2.7 ) 7.0 0.2 U.S. Tax Act deferred tax re-measurement — (44 ) — Other 1.4 0.4 0.1 (9.4 )% 12.5 % 28.3 % The domestic and foreign components of income before taxes are: Year Ended June 30, 2019 2018 2017 (in thousands) U.S. operations $ 4,100 $ 4,219 $ 4,016 Non-U.S. operations (17,482 ) 1,437 8,896 Income before income taxes $ (13,382 ) $ 5,656 $ 12,912 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: June 30, 2019 2018 (in thousands) Deferred tax assets: Accrued compensation $ 1,428 $ 2,121 Net operating loss carryforwards 16,782 7,213 Depreciation 10,036 10,968 Tax credits 10,882 8,380 Capitalized intangible assets 11,981 12,942 Capitalized Costs — 2,292 Accruals and reserves 1,000 1,197 Total deferred tax assets 52,109 45,113 Valuation allowance (35,420 ) (30,105 ) Total deferred tax assets, net of valuation allowance 16,689 15,008 Deferred tax liabilities: Depreciation and amortization (12,243 ) (10,819 ) Accruals and reserves (90 ) (10 ) Total deferred tax liabilities (12,333 ) (10,829 ) Net deferred tax assets $ 4,356 $ 4,179 The breakdown between deferred tax assets and liabilities is as follows: June 30, 2019 2018 (in thousands) Long-term deferred tax assets $ 4,822 $ 4,892 Long-term deferred tax liabilities (466 ) (713 ) Net deferred tax assets $ 4,356 $ 4,179 The Company’s valuation allowance related to deferred income taxes as reflected in the consolidated balance sheets was $35.4 million and $30.1 million as of June 30, 2019 and 2018, respectively. The change in valuation allowance for June 30, 2019 and 2018 was an increase of $5.3 million and $23.9 million , as revised for the correction of the immaterial items described below, respectively. In fiscal 2019, the Company corrected the prior year balance of deferred tax assets relating to capitalized intangible assets as well as the valuation allowance related to those assets by an equal and offsetting amount. The capitalized intangible assets and valuation allowance as of June 30, 2018 have both been increased in the table above by $12.9 million relating to certain patent rights and related intellectual property (“IP”) (see below). The Company carries a full valuation allowance against the JV Company deferred tax assets, therefore these immaterial adjustments to the disclosure had no effect on the consolidated balance sheet as of June 30, 2018 and consolidated statements of operations and cash flows for the year then ended. During the quarter ended September 30, 2016, the Company fulfilled its obligations to contribute certain packaging equipment as required by the JV Agreement by transferring the legal titles of such equipment to the JV Company. As a result of the transfer, the Company reduced its deferred tax assets by $6.6 million and recorded a $6.6 million in prepaid tax asset, which is amortized to tax expense over the useful life of the assets. On July 1, 2017, we adopted ASU 2016-16, Intra-Entity Transfers of Assets other than Inventory, which resulted in a de-recognition of a prepaid tax asset of $5.5 million related to the prior period intra-entity asset transfer with the JV Company, with an offsetting reduction to retained earnings. In July 2017, the Company contributed to the JV Company certain China patent rights and certain manufacturing related IP, which per ASU 2016-16, resulted in a deferred tax asset of $12.9 million on the difference between the tax basis and the consolidated U.S. GAAP book value of $0 . Because the JV Company provided a full valuation allowance, there was no change to our net deferred tax assets for the initial adoption of ASU 2016-16. At June 30, 2019 and 2018 , the Company provided a valuation allowance for its state research and development credit carryforward deferred tax assets of $5.1 million and $4.4 million , respectively, as it generated more state tax credits each year than it can utilize. The Company intends to maintain a partial valuation allowance equal to the state research and development credit carryforwards in excess of the state net deferred tax liabilities on all other state book/tax differences and net operating loss carryforward. Furthermore, the Company provided a valuation allowance mainly for the net operating loss, fixed asset and intangible asset related to deferred tax assets of the JV Company totaling $30.3 million and $25.7 million as of June 30, 2019 and 2018 , respectively. The Company intends to maintain a valuation allowance equal to the JV Company’s net deferred tax assets until sufficient positive evidence exists to support reversal of the valuation allowance. At June 30, 2019 , the Company had federal net operating loss and research and development tax credit carryforwards of approximately $24.3 million and $5.6 million , respectively. The federal net operating losses begin to expire in 2038 and the tax credits begin to expire in 2032 , if not utilized. At June 30, 2019 , the Company had $0.6 million of state net operating loss carryforwards and had tax credit carryforwards of approximately $6.7 million . Approximately $0.8 million of the state tax credits begin to expire in 2020, if not utilized. The remaining $5.9 million of the state tax credits carryforward indefinitely. At June 30, 2019 , the JV Company had $77.5 million of net operating loss carryforwards which begin to expire in 2021, if not utilized. The Company has not provided for withholding taxes on the undistributed earnings of its foreign subsidiaries because it intends to reinvest such earnings indefinitely. As of June 30, 2019 , the cumulative amount of undistributed earnings of its foreign entities considered permanently reinvested is $140.6 million . The determination of the unrecognized deferred tax liability on these earnings is not practicable. Should the Company decide to remit this income to its Bermuda parent company in a future period, its provision for income taxes may increase materially in that period. A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2016 to June 30, 2019 is as follows: Year Ended June 30, 2019 2018 2017 (in thousands) Balance at beginning of year $ 7,143 $ 6,589 $ 6,743 Additions based on tax positions related to the current year 417 721 401 Reductions based on tax positions related to prior years (271 ) (11 ) (4 ) Reductions due to lapse of applicable statute of limitations (139 ) (156 ) (551 ) Balance at end of year $ 7,150 $ 7,143 $ 6,589 At June 30, 2019 , the total unrecognized tax benefits of $7.2 million included $6.3 million of unrecognized tax benefits that have been netted against the related deferred tax assets. The remaining $0.9 million of unrecognized tax benefits was recorded within long-term income tax payable on the Company's consolidated balance sheet as of June 30, 2019 . The Company cannot reasonably estimate the timing and amount of potential cash settlements on the unrecognized tax benefits. The total unrecognized tax benefits of $7.2 million at June 30, 2019 included $4.2 million that, if recognized, would reduce the effective income tax rate in future periods. It is reasonably possible that the Company will recognize approximately $0.2 million reduction to its uncertain tax positions during the next twelve months, related to potential expiration of the relevant statute of limitations. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. The amount of interest and penalties accrued at June 30, 2019 was $0.2 million , of which $0.03 million was recognized in the year ended June 30, 2019 . The amount of interest and penalties accrued at June 30, 2018 was $0.1 million , of which $(0.01) million was recognized in the year ended June 30, 2018 . The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2019 remain open to examination by U.S. federal and state tax authorities. The tax years 2012 to 2019 remain open to examination by foreign tax authorities. The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. In the July 2015 ruling, the Tax Court concluded that the sharing of the cost of employee stock compensation in a company’s cost-sharing arrangement was invalid under the U.S. Administrative Procedures Act. In June 2019, a panel of the Ninth Circuit of the U.S. Court of Appeals reversed this decision. In July 2019, Altera petitioned U.S. Court of Appeals for the Ninth Circuit to hold an en banc rehearing of the case. Due to the uncertainty surrounding the status of the current regulations and questions related to the scope of potential benefits, the Company has not recorded any benefit as of June 30, 2019. The Company will continue to monitor ongoing developments and potential impacts to its financial statements. |
Segment and Geographic informat
Segment and Geographic information | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company is organized as, and operates in, one operating segment: the design, development and supply of power semiconductor products for computing, consumer electronics, communication and industrial applications. The chief operating decision-maker is the Chief Executive Officer. The financial information presented to the Company's Chief Executive Officer is on a consolidated basis, accompanied by information about revenue by customer and geographic region, for purposes of evaluating financial performance and allocating resources. The Company has one business segment, and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment. Long-lived assets, net consisting of property, plant and equipment and land use rights, net by geographical area are as follows: June 30, 2019 2018 (in thousands) China $ 321,145 $ 248,003 United States 87,817 83,040 Other countries 775 613 $ 409,737 $ 331,656 For our revenues by geography, please refer to Note 2. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2019 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Restricted Net Assets | Restricted Net Assets Laws and regulations in China permit payments of dividends by the Company's subsidiaries in China only out of their retained earnings, if any, as determined in accordance with China accounting standards and regulations. Each China subsidiary is also required to set aside at least 10% of its after-tax profit, if any, based on China accounting standards each year to its statutory reserves until the cumulative amount of such reserves reaches 50% of its registered capital. As a result of these China laws and regulations, the Company's China subsidiaries are restricted in their abilities to transfer a portion of their net assets to the Company. As of June 30, 2019 and 2018 , such restricted portion amounted to approximately $209.5 million and $184.3 million, or 64.4% and 62.8% , of our total consolidated net assets attributable to the Company, respectively. As the Company's China subsidiaries are not revenue generating operating units, the Company does not expect to repatriate funds in the form of dividends, loans or advances from its China subsidiaries for working capital and other funding purposes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating lease obligations The Company leases its office facilities and certain office equipment under non-cancelable operating leases that expire through 2026. Rent expense related to the Company's operating leases was $4.7 million , $3.8 million and $3.4 million for the fiscal years ended June 30, 2019 , 2018 and 2017 , respectively. Certain leases contain escalation clauses calling for increased rents. Future minimum lease payments of these leases at June 30, 2019 are as follows: Year ending June 30, Operating (in thousands) 2020 $ 4,357 2021 1,741 2022 1,164 2023 894 2024 1,002 Thereafter 149 $ 9,307 Purchase commitments As of June 30, 2019 and 2018 , the Company had approximately $59.5 million and $38.0 million , respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts, packaging and testing services and others. As of June 30, 2019 and 2018 , the Company had approximately $33.8 million , primarily for the JV Company, and $58.3 million , respectively, of capital commitments for the purchase of property and equipment. Other commitments See Note 1 and Note 6 of the Notes to the Consolidated Financial Statements contained in this annual Report on Form 10-K for descriptions of commitments including Joint Venture and bank borrowings. Contingencies and indemnities The Company is currently not a party to any material legal proceedings. The Company has in the past, and may from time to time in the future, becomes involved in legal proceedings arising from the normal course of business activities. The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, the Company could incur significant costs in the defense thereof or could suffer adverse effects on its operations. The Company is a party to a variety of agreements that it contracted with various parties. Pursuant to these agreements, the Company may be obligated to indemnify another party to such an agreement with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold, certain intellectual property rights, specified environmental matters and certain income taxes. In these circumstances, payment by the Company is customarily conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claim. Further, the Company's obligations under these agreements maybe limited in time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. The Company has not historically paid or recorded any material indemnifications and no accrual was made at June 30, 2019 and 2018 . The Company has agreed to indemnify its directors and certain employees as permitted by law and pursuant to its bye-laws, and has entered into indemnification agreements with its directors and executive officers. The Company has not recorded a liability associated with these indemnification arrangements, as it historically has not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that the Company maintains, however, such insurance may not cover any, or may cover only a portion of, the amounts the Company may be required to pay. In addition, the Company may not be able to maintain such insurance coverage in the future. Environmental matters The Company is subject to various federal, state, local, and foreign laws and regulations governing environmental matters, including the use, handling, discharge, and disposal of hazardous materials. The Company believes that it has been in material compliance with applicable environmental regulations and standards. Complying with current laws and regulations has not had a material adverse effect on the Company’s financial condition and results of operations. However, it is possible that additional environmental issues may arise in the future, which the Company cannot currently predict. |
Schedule I - Condensed Unconsol
Schedule I - Condensed Unconsolidated Balance Sheets | 12 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2019 2018 2017 Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Other comprehensive income (loss), net of tax Foreign currency translation adjustment (5,937 ) 244 (1,012 ) Comprehensive income (loss) (20,575 ) 5,192 8,248 Noncontrolling interest (19,303 ) (9,205 ) (5,118 ) Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited $ (1,272 ) $ 14,397 $ 13,366 June 30, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 5,284 $ 4,738 Accounts receivable - Intercompany — 3,937 Other current assets 325 362 Total current assets 5,609 9,037 Property, plant and equipment, net 119 343 Other long-term assets 242 339 Investment in subsidiaries 459,696 417,185 Total assets $ 465,666 $ 426,904 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 863 $ 742 Accounts payable - Intercompany 21,514 — Total liabilities 22,377 742 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2019 and 2018 — — Common shares, par value $0.002 per share: Authorized: 100,000 shares; issued and outstanding: 31,163 shares and 24,517 shares, respectively at June 30, 2019 and 30,400 shares and 23,860 shares, respectively at June 30, 2018 62 61 Treasury shares at cost; 6,646 shares at June 30, 2019 and 6,540 shares at June 30, 2018 (66,240 ) (64,790 ) Additional paid-in capital 234,410 220,244 Accumulated other comprehensive income (2,693 ) 440 Retained earnings 125,485 122,639 Total Alpha and Omega Semiconductor Limited shareholder's equity 291,024 278,594 Noncontrolling interest 152,265 147,568 Total equity 443,289 426,162 Total liabilities and equity $ 465,666 $ 426,904 Year Ended June 30, 2019 2018 2017 Revenue $ 4,292 $ 4,096 $ 3,772 Cost of revenue — — — Gross profit 4,292 4,096 3,772 Operating expenses: General and administrative 4,599 4,479 3,938 Total operating expenses 4,599 4,479 3,938 Operating loss (307 ) (383 ) (166 ) Interest income 3 7 20 Income (loss) on equity investment in subsidiaries (14,334 ) 5,324 9,406 Net income (loss) including noncontrolling interest (14,638 ) 4,948 9,260 Net loss attributable to noncontrolling interest (16,499 ) (9,315 ) (4,569 ) Net income attributable to Alpha and Omega Semiconductor Limited $ 1,861 $ 14,263 $ 13,829 Year Ended June 30, 2019 2018 2017 Cash flows from operating activities Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 274 464 469 Share-based compensation expense 432 503 428 Equity in net (income) loss of subsidiaries 14,334 (5,324 ) (9,406 ) Other — — 33 Changes in assets and liabilities: Accounts receivable - intercompany 3,937 14,316 (4,868 ) Other current assets 134 (199 ) (134 ) Accounts payable and accrued liabilities 121 (182 ) 256 Accounts payable - intercompany 21,514 — — Net cash provided by (used in) operating activities 26,108 14,526 (3,962 ) Cash flows from investing activities Purchases of property and equipment (51 ) — — Investment in subsidiaries (25,000 ) (10,000 ) — Net cash used in investing activities (25,051 ) (10,000 ) — Cash flows from financing activities Withholding tax on restricted stock units (2,028 ) (2,363 ) (2,071 ) Proceeds from exercise of stock options and ESPP 3,018 4,956 10,699 Payments for repurchases of common shares (1,501 ) (15,098 ) — Net cash provided by (used in) financing activities (511 ) (12,505 ) 8,628 Net increase (decrease) in cash and cash equivalents 546 (7,979 ) 4,666 Cash and cash equivalents at beginning of year 4,738 12,717 8,051 Cash and cash equivalents at end of year $ 5,284 $ 4,738 $ 12,717 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed the JV Agreement with the Chongqing Funds to form a joint venture for the construction of a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Company expects to commence initial packaging production as soon as the required milestones, including certain construction and funding milestones, have been met, and there is no assurance that we can meet these milestones in a timely manner. In January 2017, the JV Company entered into an Engineering, Procurement and Construction Contract (the "EPC Contract") with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited. The total price payable by the JV Company under the EPC Contract is approximately $78.0 million , which consists of $2.8 million of design fees and $75.2 million of construction and procurement fees. As of June 30, 2019 , we had paid approximately $69.9 million , and expects to pay the remaining of $8.7 million in the near term. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule I - Condensed Uncons_2
Schedule I - Condensed Unconsolidated Statements of Income | 12 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2019 2018 2017 Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Other comprehensive income (loss), net of tax Foreign currency translation adjustment (5,937 ) 244 (1,012 ) Comprehensive income (loss) (20,575 ) 5,192 8,248 Noncontrolling interest (19,303 ) (9,205 ) (5,118 ) Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited $ (1,272 ) $ 14,397 $ 13,366 June 30, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 5,284 $ 4,738 Accounts receivable - Intercompany — 3,937 Other current assets 325 362 Total current assets 5,609 9,037 Property, plant and equipment, net 119 343 Other long-term assets 242 339 Investment in subsidiaries 459,696 417,185 Total assets $ 465,666 $ 426,904 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 863 $ 742 Accounts payable - Intercompany 21,514 — Total liabilities 22,377 742 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2019 and 2018 — — Common shares, par value $0.002 per share: Authorized: 100,000 shares; issued and outstanding: 31,163 shares and 24,517 shares, respectively at June 30, 2019 and 30,400 shares and 23,860 shares, respectively at June 30, 2018 62 61 Treasury shares at cost; 6,646 shares at June 30, 2019 and 6,540 shares at June 30, 2018 (66,240 ) (64,790 ) Additional paid-in capital 234,410 220,244 Accumulated other comprehensive income (2,693 ) 440 Retained earnings 125,485 122,639 Total Alpha and Omega Semiconductor Limited shareholder's equity 291,024 278,594 Noncontrolling interest 152,265 147,568 Total equity 443,289 426,162 Total liabilities and equity $ 465,666 $ 426,904 Year Ended June 30, 2019 2018 2017 Revenue $ 4,292 $ 4,096 $ 3,772 Cost of revenue — — — Gross profit 4,292 4,096 3,772 Operating expenses: General and administrative 4,599 4,479 3,938 Total operating expenses 4,599 4,479 3,938 Operating loss (307 ) (383 ) (166 ) Interest income 3 7 20 Income (loss) on equity investment in subsidiaries (14,334 ) 5,324 9,406 Net income (loss) including noncontrolling interest (14,638 ) 4,948 9,260 Net loss attributable to noncontrolling interest (16,499 ) (9,315 ) (4,569 ) Net income attributable to Alpha and Omega Semiconductor Limited $ 1,861 $ 14,263 $ 13,829 Year Ended June 30, 2019 2018 2017 Cash flows from operating activities Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 274 464 469 Share-based compensation expense 432 503 428 Equity in net (income) loss of subsidiaries 14,334 (5,324 ) (9,406 ) Other — — 33 Changes in assets and liabilities: Accounts receivable - intercompany 3,937 14,316 (4,868 ) Other current assets 134 (199 ) (134 ) Accounts payable and accrued liabilities 121 (182 ) 256 Accounts payable - intercompany 21,514 — — Net cash provided by (used in) operating activities 26,108 14,526 (3,962 ) Cash flows from investing activities Purchases of property and equipment (51 ) — — Investment in subsidiaries (25,000 ) (10,000 ) — Net cash used in investing activities (25,051 ) (10,000 ) — Cash flows from financing activities Withholding tax on restricted stock units (2,028 ) (2,363 ) (2,071 ) Proceeds from exercise of stock options and ESPP 3,018 4,956 10,699 Payments for repurchases of common shares (1,501 ) (15,098 ) — Net cash provided by (used in) financing activities (511 ) (12,505 ) 8,628 Net increase (decrease) in cash and cash equivalents 546 (7,979 ) 4,666 Cash and cash equivalents at beginning of year 4,738 12,717 8,051 Cash and cash equivalents at end of year $ 5,284 $ 4,738 $ 12,717 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed the JV Agreement with the Chongqing Funds to form a joint venture for the construction of a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Company expects to commence initial packaging production as soon as the required milestones, including certain construction and funding milestones, have been met, and there is no assurance that we can meet these milestones in a timely manner. In January 2017, the JV Company entered into an Engineering, Procurement and Construction Contract (the "EPC Contract") with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited. The total price payable by the JV Company under the EPC Contract is approximately $78.0 million , which consists of $2.8 million of design fees and $75.2 million of construction and procurement fees. As of June 30, 2019 , we had paid approximately $69.9 million , and expects to pay the remaining of $8.7 million in the near term. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule I - Condensed Uncons_3
Schedule I - Condensed Unconsolidated Statements of Comprehensive Income (Loss) Schedule I - Condensed Unconsolidated Statements of Comprehensive Income (Loss) (Notes) | 12 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2019 2018 2017 Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Other comprehensive income (loss), net of tax Foreign currency translation adjustment (5,937 ) 244 (1,012 ) Comprehensive income (loss) (20,575 ) 5,192 8,248 Noncontrolling interest (19,303 ) (9,205 ) (5,118 ) Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited $ (1,272 ) $ 14,397 $ 13,366 June 30, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 5,284 $ 4,738 Accounts receivable - Intercompany — 3,937 Other current assets 325 362 Total current assets 5,609 9,037 Property, plant and equipment, net 119 343 Other long-term assets 242 339 Investment in subsidiaries 459,696 417,185 Total assets $ 465,666 $ 426,904 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 863 $ 742 Accounts payable - Intercompany 21,514 — Total liabilities 22,377 742 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2019 and 2018 — — Common shares, par value $0.002 per share: Authorized: 100,000 shares; issued and outstanding: 31,163 shares and 24,517 shares, respectively at June 30, 2019 and 30,400 shares and 23,860 shares, respectively at June 30, 2018 62 61 Treasury shares at cost; 6,646 shares at June 30, 2019 and 6,540 shares at June 30, 2018 (66,240 ) (64,790 ) Additional paid-in capital 234,410 220,244 Accumulated other comprehensive income (2,693 ) 440 Retained earnings 125,485 122,639 Total Alpha and Omega Semiconductor Limited shareholder's equity 291,024 278,594 Noncontrolling interest 152,265 147,568 Total equity 443,289 426,162 Total liabilities and equity $ 465,666 $ 426,904 Year Ended June 30, 2019 2018 2017 Revenue $ 4,292 $ 4,096 $ 3,772 Cost of revenue — — — Gross profit 4,292 4,096 3,772 Operating expenses: General and administrative 4,599 4,479 3,938 Total operating expenses 4,599 4,479 3,938 Operating loss (307 ) (383 ) (166 ) Interest income 3 7 20 Income (loss) on equity investment in subsidiaries (14,334 ) 5,324 9,406 Net income (loss) including noncontrolling interest (14,638 ) 4,948 9,260 Net loss attributable to noncontrolling interest (16,499 ) (9,315 ) (4,569 ) Net income attributable to Alpha and Omega Semiconductor Limited $ 1,861 $ 14,263 $ 13,829 Year Ended June 30, 2019 2018 2017 Cash flows from operating activities Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 274 464 469 Share-based compensation expense 432 503 428 Equity in net (income) loss of subsidiaries 14,334 (5,324 ) (9,406 ) Other — — 33 Changes in assets and liabilities: Accounts receivable - intercompany 3,937 14,316 (4,868 ) Other current assets 134 (199 ) (134 ) Accounts payable and accrued liabilities 121 (182 ) 256 Accounts payable - intercompany 21,514 — — Net cash provided by (used in) operating activities 26,108 14,526 (3,962 ) Cash flows from investing activities Purchases of property and equipment (51 ) — — Investment in subsidiaries (25,000 ) (10,000 ) — Net cash used in investing activities (25,051 ) (10,000 ) — Cash flows from financing activities Withholding tax on restricted stock units (2,028 ) (2,363 ) (2,071 ) Proceeds from exercise of stock options and ESPP 3,018 4,956 10,699 Payments for repurchases of common shares (1,501 ) (15,098 ) — Net cash provided by (used in) financing activities (511 ) (12,505 ) 8,628 Net increase (decrease) in cash and cash equivalents 546 (7,979 ) 4,666 Cash and cash equivalents at beginning of year 4,738 12,717 8,051 Cash and cash equivalents at end of year $ 5,284 $ 4,738 $ 12,717 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed the JV Agreement with the Chongqing Funds to form a joint venture for the construction of a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Company expects to commence initial packaging production as soon as the required milestones, including certain construction and funding milestones, have been met, and there is no assurance that we can meet these milestones in a timely manner. In January 2017, the JV Company entered into an Engineering, Procurement and Construction Contract (the "EPC Contract") with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited. The total price payable by the JV Company under the EPC Contract is approximately $78.0 million , which consists of $2.8 million of design fees and $75.2 million of construction and procurement fees. As of June 30, 2019 , we had paid approximately $69.9 million , and expects to pay the remaining of $8.7 million in the near term. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule I - Condensed Uncons_4
Schedule I - Condensed Unconsolidated Cash Flows | 12 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2019 2018 2017 Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Other comprehensive income (loss), net of tax Foreign currency translation adjustment (5,937 ) 244 (1,012 ) Comprehensive income (loss) (20,575 ) 5,192 8,248 Noncontrolling interest (19,303 ) (9,205 ) (5,118 ) Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited $ (1,272 ) $ 14,397 $ 13,366 June 30, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 5,284 $ 4,738 Accounts receivable - Intercompany — 3,937 Other current assets 325 362 Total current assets 5,609 9,037 Property, plant and equipment, net 119 343 Other long-term assets 242 339 Investment in subsidiaries 459,696 417,185 Total assets $ 465,666 $ 426,904 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 863 $ 742 Accounts payable - Intercompany 21,514 — Total liabilities 22,377 742 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2019 and 2018 — — Common shares, par value $0.002 per share: Authorized: 100,000 shares; issued and outstanding: 31,163 shares and 24,517 shares, respectively at June 30, 2019 and 30,400 shares and 23,860 shares, respectively at June 30, 2018 62 61 Treasury shares at cost; 6,646 shares at June 30, 2019 and 6,540 shares at June 30, 2018 (66,240 ) (64,790 ) Additional paid-in capital 234,410 220,244 Accumulated other comprehensive income (2,693 ) 440 Retained earnings 125,485 122,639 Total Alpha and Omega Semiconductor Limited shareholder's equity 291,024 278,594 Noncontrolling interest 152,265 147,568 Total equity 443,289 426,162 Total liabilities and equity $ 465,666 $ 426,904 Year Ended June 30, 2019 2018 2017 Revenue $ 4,292 $ 4,096 $ 3,772 Cost of revenue — — — Gross profit 4,292 4,096 3,772 Operating expenses: General and administrative 4,599 4,479 3,938 Total operating expenses 4,599 4,479 3,938 Operating loss (307 ) (383 ) (166 ) Interest income 3 7 20 Income (loss) on equity investment in subsidiaries (14,334 ) 5,324 9,406 Net income (loss) including noncontrolling interest (14,638 ) 4,948 9,260 Net loss attributable to noncontrolling interest (16,499 ) (9,315 ) (4,569 ) Net income attributable to Alpha and Omega Semiconductor Limited $ 1,861 $ 14,263 $ 13,829 Year Ended June 30, 2019 2018 2017 Cash flows from operating activities Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 274 464 469 Share-based compensation expense 432 503 428 Equity in net (income) loss of subsidiaries 14,334 (5,324 ) (9,406 ) Other — — 33 Changes in assets and liabilities: Accounts receivable - intercompany 3,937 14,316 (4,868 ) Other current assets 134 (199 ) (134 ) Accounts payable and accrued liabilities 121 (182 ) 256 Accounts payable - intercompany 21,514 — — Net cash provided by (used in) operating activities 26,108 14,526 (3,962 ) Cash flows from investing activities Purchases of property and equipment (51 ) — — Investment in subsidiaries (25,000 ) (10,000 ) — Net cash used in investing activities (25,051 ) (10,000 ) — Cash flows from financing activities Withholding tax on restricted stock units (2,028 ) (2,363 ) (2,071 ) Proceeds from exercise of stock options and ESPP 3,018 4,956 10,699 Payments for repurchases of common shares (1,501 ) (15,098 ) — Net cash provided by (used in) financing activities (511 ) (12,505 ) 8,628 Net increase (decrease) in cash and cash equivalents 546 (7,979 ) 4,666 Cash and cash equivalents at beginning of year 4,738 12,717 8,051 Cash and cash equivalents at end of year $ 5,284 $ 4,738 $ 12,717 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed the JV Agreement with the Chongqing Funds to form a joint venture for the construction of a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Company expects to commence initial packaging production as soon as the required milestones, including certain construction and funding milestones, have been met, and there is no assurance that we can meet these milestones in a timely manner. In January 2017, the JV Company entered into an Engineering, Procurement and Construction Contract (the "EPC Contract") with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited. The total price payable by the JV Company under the EPC Contract is approximately $78.0 million , which consists of $2.8 million of design fees and $75.2 million of construction and procurement fees. As of June 30, 2019 , we had paid approximately $69.9 million , and expects to pay the remaining of $8.7 million in the near term. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule I - Notes to the Conde
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | 12 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Notes to the Condensed Unconsolidated Financial Statements | Year ended June 30, 2019 2018 2017 Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Other comprehensive income (loss), net of tax Foreign currency translation adjustment (5,937 ) 244 (1,012 ) Comprehensive income (loss) (20,575 ) 5,192 8,248 Noncontrolling interest (19,303 ) (9,205 ) (5,118 ) Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited $ (1,272 ) $ 14,397 $ 13,366 June 30, 2019 2018 ASSETS Current assets: Cash and cash equivalents $ 5,284 $ 4,738 Accounts receivable - Intercompany — 3,937 Other current assets 325 362 Total current assets 5,609 9,037 Property, plant and equipment, net 119 343 Other long-term assets 242 339 Investment in subsidiaries 459,696 417,185 Total assets $ 465,666 $ 426,904 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 863 $ 742 Accounts payable - Intercompany 21,514 — Total liabilities 22,377 742 Equity: Preferred shares, par value $0.002 per share: Authorized: 10,000 shares; Issued and outstanding: none at June 30, 2019 and 2018 — — Common shares, par value $0.002 per share: Authorized: 100,000 shares; issued and outstanding: 31,163 shares and 24,517 shares, respectively at June 30, 2019 and 30,400 shares and 23,860 shares, respectively at June 30, 2018 62 61 Treasury shares at cost; 6,646 shares at June 30, 2019 and 6,540 shares at June 30, 2018 (66,240 ) (64,790 ) Additional paid-in capital 234,410 220,244 Accumulated other comprehensive income (2,693 ) 440 Retained earnings 125,485 122,639 Total Alpha and Omega Semiconductor Limited shareholder's equity 291,024 278,594 Noncontrolling interest 152,265 147,568 Total equity 443,289 426,162 Total liabilities and equity $ 465,666 $ 426,904 Year Ended June 30, 2019 2018 2017 Revenue $ 4,292 $ 4,096 $ 3,772 Cost of revenue — — — Gross profit 4,292 4,096 3,772 Operating expenses: General and administrative 4,599 4,479 3,938 Total operating expenses 4,599 4,479 3,938 Operating loss (307 ) (383 ) (166 ) Interest income 3 7 20 Income (loss) on equity investment in subsidiaries (14,334 ) 5,324 9,406 Net income (loss) including noncontrolling interest (14,638 ) 4,948 9,260 Net loss attributable to noncontrolling interest (16,499 ) (9,315 ) (4,569 ) Net income attributable to Alpha and Omega Semiconductor Limited $ 1,861 $ 14,263 $ 13,829 Year Ended June 30, 2019 2018 2017 Cash flows from operating activities Net income (loss) including noncontrolling interest $ (14,638 ) $ 4,948 $ 9,260 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 274 464 469 Share-based compensation expense 432 503 428 Equity in net (income) loss of subsidiaries 14,334 (5,324 ) (9,406 ) Other — — 33 Changes in assets and liabilities: Accounts receivable - intercompany 3,937 14,316 (4,868 ) Other current assets 134 (199 ) (134 ) Accounts payable and accrued liabilities 121 (182 ) 256 Accounts payable - intercompany 21,514 — — Net cash provided by (used in) operating activities 26,108 14,526 (3,962 ) Cash flows from investing activities Purchases of property and equipment (51 ) — — Investment in subsidiaries (25,000 ) (10,000 ) — Net cash used in investing activities (25,051 ) (10,000 ) — Cash flows from financing activities Withholding tax on restricted stock units (2,028 ) (2,363 ) (2,071 ) Proceeds from exercise of stock options and ESPP 3,018 4,956 10,699 Payments for repurchases of common shares (1,501 ) (15,098 ) — Net cash provided by (used in) financing activities (511 ) (12,505 ) 8,628 Net increase (decrease) in cash and cash equivalents 546 (7,979 ) 4,666 Cash and cash equivalents at beginning of year 4,738 12,717 8,051 Cash and cash equivalents at end of year $ 5,284 $ 4,738 $ 12,717 1. Basis of Presentation Alpha and Omega Semiconductor Limited is the parent company of all Alpha and Omega Semiconductor subsidiaries. It was incorporated in Bermuda on September 27, 2000 as an exempted limited liability company. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. The accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of its subsidiaries exceed 25% of the consolidated net assets of Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”). The parent company records its investment in subsidiaries under the equity method of accounting. Such investment is presented on the balance sheet as "Investment in subsidiaries" and the subsidiaries' net income (loss) are recognized based on the effective shareholding percentage as income on equity investment in subsidiaries on the statement of operations. Intercompany balances and transactions have not been eliminated. The revenue recorded represents intercompany administrative service fees charged by the parent company starting in fiscal year 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. 2. Restricted net assets of subsidiaries For a discussion of the Company’s restricted net assets of subsidiaries, see Note 12 of the Company’s consolidated financial statements. 3. Commitments and contingencies In March 2016, the Company executed the JV Agreement with the Chongqing Funds to form a joint venture for the construction of a new state-of -the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing. The Company expects to commence initial packaging production as soon as the required milestones, including certain construction and funding milestones, have been met, and there is no assurance that we can meet these milestones in a timely manner. In January 2017, the JV Company entered into an Engineering, Procurement and Construction Contract (the "EPC Contract") with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited. The total price payable by the JV Company under the EPC Contract is approximately $78.0 million , which consists of $2.8 million of design fees and $75.2 million of construction and procurement fees. As of June 30, 2019 , we had paid approximately $69.9 million , and expects to pay the remaining of $8.7 million in the near term. For a discussion of the Company’s commitments and contingencies, see Note 13 to the Company’s consolidated financial statements. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Allowance Allowance Allowance for Doubtful for Price for Deferred Accounts Adjustments Tax Assets June 30, 2016 $ 30 $ 16,700 $ 2,894 Additions — 113,970 3,284 Reductions — (111,071 ) — June 30, 2017 30 19,599 6,178 Additions — 124,694 23,927 Reductions — (125,391 ) — June 30, 2018 30 18,902 30,105 Additions — 115,842 5,315 Reductions — (110,669 ) — June 30, 2019 $ 30 $ 24,075 $ 35,420 |
The Company and Significant A_2
The Company and Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest after elimination of inter-company balances and transactions. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation Most of the Company's principal subsidiaries use U.S. dollars as their functional currency because their transactions are primarily conducted and settled in U.S. dollars. All of their revenues and a significant portion of their operating expenses are denominated in U.S. dollars. The functional currencies for the Company's in-house packaging and testing facilities in China are U.S. dollars, and a majority of their capital expenditures are denominated in U.S. dollars. Foreign currency transactions are translated into the functional currencies using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses, resulting from the settlement of such transactions and from the re-measurement of monetary assets and liabilities denominated in foreign currencies using exchange rates at balance sheet date and non-monetary assets and liabilities using historical exchange rates, are recognized in the consolidated statements of operations. For the Company's subsidiaries which use the local currency as their functional currency, including a Joint Venture Company ("JV Company"), their results and financial position are translated into U.S. dollars using exchange rates at balance sheet dates for assets and liabilities and using average exchange rates for income and expenses items. The resulting translation differences are presented as a separate component of accumulated other comprehensive income (loss) and noncontrolling interest in the consolidated statements of equity. |
Restricted Cash, Cash and Cash Equivalents | Restricted cash As a condition of the loan arrangements, the Company is required to keep a compensating balance at the issuing bank (see Note 6). The balance has been excluded from the Company’s cash and cash equivalents balance and is classified as restricted cash - long-term in the Company’s consolidated balance sheets. As of June 30, 2019 and 2018, the amount of restricted cash was $2.0 million and $0 , respectively. Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on hand and short-term bank deposits with original maturities of three months or less. Cash equivalents are highly liquid investments with stated maturities of three months or less as of the dates of purchase. The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities. Cash and cash equivalents are maintained with reputable major financial institutions. If, due to current economic conditions or other factors, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk. Deposits with these banks may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk. |
Accounts Receivable | Accounts Receivable The allowance for doubtful accounts is based on assessment of the collectability of accounts receivable from customers. The Company reviews the allowance by considering factors such as historical collection experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. The Company writes off a receivable and charges against its recorded allowance when it has exhausted its collection efforts without success. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of cash equivalents is based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure and terms of the debts. |
Inventories | Inventories The Company carries inventories at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Cost includes semiconductor wafer and raw materials, labor, depreciation expenses and other manufacturing expenses and overhead, and packaging and testing fees paid to third parties if subcontractors are used. Inventory reserves are made based on the Company's periodic review of inventory quantities on hand as compared with its sales forecasts, historical usage, aging of inventories, production yield levels and current product selling prices. If actual market conditions are less favorable than those forecasted by management, additional future inventory write-downs may be required that could adversely affect the Company's operating results. Inventory reserves once established are not reversed until the related inventory has been sold or scrapped. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditures that are directly attributable to the acquisition of the items and the costs incurred to make the assets ready for their intended use. Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 to 30 years Manufacturing machinery and equipment 5 to 15 years Equipment and tooling 5 years Computer hardware and software 3 to 5 years Office furniture and equipment 5 years Leasehold and building improvements 2 to 20 years Land use rights 50 years There is no private land ownership in China. Individuals and companies are permitted to acquire land use rights for specific purpose. In March 2017, the JV Company received the necessary land use right certificate from the PRC government. The land use rights will expire on November 30, 2066. Equipment and construction in progress represent equipment received but the necessary installation has not been fully performed or building construction and leasehold improvements have been started but not yet completed. Equipment and construction in progress are stated at cost and transferred to respective asset class when fully completed and ready for their intended use. Internal-use software development costs are capitalized to the extent that the costs are directly associated with the development of identifiable and unique software products controlled by the Company that will probably generate economic benefits beyond one year. Costs incurred during the application development stage are required to be capitalized. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Costs include employee costs incurred and fees paid to outside consultants for the software development and implementation. Internal developed software is amortized over its estimated useful life of three to five years starting from the date when it is ready for its intended use. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized as selling, general and administrative expenses in the consolidated statements of operations. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying value of the asset may be impaired. An impairment loss is recognized when estimated future cash flows expected to result from the use of the asset, including disposition, are less than the carrying value of the asset. Such an impairment charge would be measured as the excess of the carrying value of the asset over its fair value. There was no impairment of long-lived assets for the fiscal year of 2019 , 2018 and 2017 . |
Goodwill and Intangible assets | Intangible Assets Intangible assets are stated at cost less accumulated amortization. Intangible assets primarily include patents and exclusive technology rights that the Company entered a license agreement with STMicroelectronices International N.V. ("STMicro"). The Company begins amortizing such license fees when the technology has met its qualification and is ready for intended use in production. The Company evaluates its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to future undiscounted net cash flows expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and fair value less costs to sell. There was no indication of intangible assets impairment for the fiscal year of 2019 , 2018 and 2017 . |
Revenue Recognition | Revenue Recognition As a result of the adoption of the new revenue standard on July 1, 2018, at the beginning of the first quarter of fiscal year 2019, the Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied. The Company recognizes revenue when product is shipped to the customer, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets. Packaging and testing services revenue is recognized upon shipment of serviced products to the customer. |
Product Warranty | Product Warranty The Company provides a standard one-year warranty for the products from the date of purchase by the end customers. The Company accrues for estimated warranty costs at the time revenue is recognized. The Company's warranty obligation is affected by product failure rates, labor and material costs for replacing defective parts, related freight costs for failed parts and other quality assurance costs. The Company monitors its product returns for warranty claims and maintains warranty reserves based on historical experiences and anticipated warranty claims known at the time of estimation. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in cost of goods sold. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Provision for Income Taxes | Provision for Income Taxes Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and experimentation tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. The Company considers all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. The Company considers evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income. The Financial Accounting Standards Board, or FASB, issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result. The Company's provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties. |
Share-based Compensation Expense | Share-based Compensation Expense The Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-Carol pricing model. The fair value of stock options is estimated on the date of grant using the Black-Scholes option valuation model. Share-based compensation expense is recognized on the accelerated attribution basis over the requisite service period of the award, which generally equals the vesting period. The Employee Share Purchase Plan (the "ESPP") is accounted for at fair value on the date of grant using the Black-Scholes option valuation model. |
Advertising | Advertising Advertising expenditures are expensed as incurred. Advertising expense was $0.6 million , $0.4 million and $0.4 million in the fiscal years ended June 30, 2019 , 2018 , and 2017 , respectively. |
Comprehensive Income (loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. |
Leases | Leases Leases entered into by the Company as a lessee are classified as capital or operating leases. Leases that transfer to the Company substantially the entire risks and benefits incidental to ownership are classified as capital leases. At the inception of a capital lease, an asset and an obligation are recorded at an amount equal to the lesser of the present value of the minimum lease payments and the asset’s fair market value at the beginning of each lease. Rental payments under operating leases are expensed as incurred. The Company will recognize leases in accordance with Accounting Standards Update (ASU) 842 "Leases" beginning on July 1, 2019. Both finance and operating leases will result in the recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to certain risks and uncertainties. The Company believes changes in any of the following areas could have a material adverse effect on the Company's future financial position or results of operations or cash flows: new product development, including market receptiveness, operation of in-house manufacturing facilities, litigation or claims against the Company based on intellectual property, patent, product regulatory or other factors, competition from other products, general economic conditions, the ability to attract and retain qualified employees, the ability to successfully operate joint venture and ultimately to sustain profitable operations, and ability to diversify products and develop digital business. Additional risks and uncertainties that the Company is unaware of, or that the Company currently believes are not material, may also become important factors that adversely affect its business. The semiconductor industry is characterized by rapid technological change, competition, competitive pricing pressures and cyclical market patterns. The Company's financial results are affected by a wide variety of factors, including general economic conditions specific to the semiconductor industry and the Company's particular market, such as the personal computing (PC) markets, the timely implementation of new products, new manufacturing process technology and the ability to safeguard patents and intellectual property in a rapidly evolving market. In addition, the semiconductor market has historically been cyclical and subject to significant economic downturns. As a result, the Company may experience significant period-to-period fluctuations in operating results due to the factors mentioned above or other factors. The Company's business model allocates its wafer manufacturing requirements to both in-house capacity and selected third-party foundries. The Company also deploys and implements its proprietary power discrete processes and equipment at third-party foundries to maximize the performance and quality of its products. The Company's revenue may be impacted by its ability to obtain adequate wafer supplies from third-party foundries and utilize wafer production and packaging and testing capacity from its in-house facilities. Currently the Company's main third-party foundry is Shanghai Hua Hong Grace Electronic Company Limited, or HHGrace, located in Shanghai, China. HHGrace has been manufacturing wafers for the Company since 2002. HHGrace manufactured approximately 14.1% , 15.4% and 18.6% of the wafers used in the Company's products for the fiscal years ended June 30, 2019 , 2018 and 2017 , respectively. Although the Company believes that its volume of production allows the Company to secure favorable pricing and priority in allocation of capacity in its third-party foundries, if the foundries' capacities are constrained due to market demands, HHGrace, together with other foundries from which the Company purchases wafers, may not be willing or able to satisfy all of the Company's manufacturing requirements on a timely basis and/or at favorable prices. The Company is also subject to the risks of service disruptions and raw material shortages by its foundries. Such disruptions, shortages and price increases could harm the Company's operating results. In addition, manufacturing facilities' capacity affects the Company's gross margin because the Company has certain fixed costs associated with its Oregon fab and the JV Company, as well as in-house packaging and testing facilities. If the Company fails to utilize its manufacturing facilities' capacity at a desirable level, its financial condition and results of operations will be adversely affected. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards not yet adopted In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-15 “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15”). These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contact with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. ASU 2018-15 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13”). ASU 2018-13 amends existing fair value measurement disclosure requirements by adding, changing, or removing certain disclosures. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. ASU No. 2018-13 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In June 2018, the FASB issued ASU 2018-07, "Compensation -Stock Compensation: Improvement to Nonemployees Share-Based Payment Accounting ("ASU 2018-07"), which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which the grantor acquires goods and services to be used or consumed in its own operations by issuing share-based payment awards. ASU 2018-07 also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC 606. ASU 2018-07 is effective fiscal years beginning after December 15, 2018, including interim periods within that fiscal year, with early adoption permitted, but no earlier than our adoption of ASC 606. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses ("ASU 2016-13"). This accounting standard update changes the accounting for recognizing impairments of financial assets. Under the update, credit losses for certain types of financial instruments will be estimated based on expected losses. The update also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, "Leases ("ASU 2016-02"). This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The Company will adopt this standard in the first quarter of fiscal year of 2020, using the modified retrospective transition method and will not restate comparative periods. The Company will also elect to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. The key change that will affect the Company relates to its accounting for operating leases for which the Company are the lessee that were historically off-balance sheet. While the Company is currently evaluating the impact the pronouncement will have on its consolidated balance sheet and related disclosures, the Company expects that most of its operating lease commitments will be subject to the new standard and will result in the recognition of right-of-use assets and lease liabilities on its consolidated balance sheet as of July 1, 2019. Additionally, the Company will elect the package of practical expedients as permitted by the guidance. The Company is also evaluating the effect of the additional recognition and disclosure requirements under the standard on its current processes and controls. Recently Adopted Accounting Standards In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should be presented in the form of a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed with the SEC. The Company's first presentation of changes in stockholders' equity has been included in its Form 10-Q for the quarter ending March 31, 2019. In May 2017, the FASB issued ASU 2017-09, "Compensation -Stock Compensation: Scope of Modification Accounting ("ASU 2017-09"). ASU 2017-09 is an update to the existing guidance to clarify when modification accounting would be applied for a change to the terms or conditions of a share-based award. Under this new guidance, modification accounting is required only if the fair value, a vesting condition, or the classification of the award changes as a result of the change in terms or conditions. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. The Company does not regularly modify the terms and conditions of its share-based awards and the adoption of this guidance had no impact on its financial statements. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows: Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted and requires retrospective adoption. The Company adopted this standard effective July 1, 2018. The reclassified restricted cash balances from investing activities to changes in cash, cash equivalents and restricted cash on the condensed consolidated statements of cash flows were not material for all periods presented. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. Upon adoption, entities must apply the guidance retrospectively to all periods presented. There was no impact on the Company's consolidated financial statements upon the adoption of this standard. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. The change for the Company under ASC 606 relates to the timing of revenue recognition with two U.S.-based distributors. Sales to these distributors are governed under the terms of agreements providing extended price protection and other return rights, and were historically deferred under the previous accounting guidance until the related product was sold to the end customer. Under ASC 606, the transaction price takes into consideration the effect of variable consideration such as price adjustments and returns rights, which are estimated and recorded at the time the goods are delivered. Accordingly, the Company recognizes revenue under ASC 606 at the time of shipment or delivery to these two distributors, adjusted for estimates of the price adjustments and product returns based on historical data and other available information. Revenue from other non-U.S. distributors and direct customers, which consists of the majority of the Company's total revenue, is recognized at the time of shipment or delivery to the distributors and direct customers. Accordingly, revenue recognition with these distributors and direct customers remains unchanged upon adoption of ASC 606. See "Note 2 - Revenue" for additional information on the impact of the adoption of the new standard on the Company’s consolidated financial statements. |
The Company and Significant A_3
The Company and Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 to 30 years Manufacturing machinery and equipment 5 to 15 years Equipment and tooling 5 years Computer hardware and software 3 to 5 years Office furniture and equipment 5 years Leasehold and building improvements 2 to 20 years Land use rights 50 years Property, plant and equipment, net June 30, 2019 2018 (in thousands) Land $ 4,877 $ 4,877 Building 36,205 4,325 Manufacturing machinery and equipment 303,750 265,192 Equipment and tooling 20,739 16,605 Computer equipment and software 34,048 25,686 Office furniture and equipment 3,243 2,314 Leasehold improvements 53,597 29,900 Land use rights 8,760 9,089 465,219 357,988 Less: accumulated depreciation (252,982 ) (225,184 ) 212,237 132,804 Equipment and construction in progress 197,500 198,852 Property, plant and equipment, net $ 409,737 $ 331,656 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net June 30, 2019 2018 (in thousands) Patents and technology rights $ 18,037 $ 17,633 Trade name 268 268 Customer relationships 1,150 1,150 19,455 19,051 Less: accumulated amortization (2,842 ) (2,729 ) 16,613 16,322 Goodwill 269 269 Intangible assets, net $ 16,882 $ 16,591 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net income per share attributable to common shareholders: Year Ended June 30, 2019 2018 2017 (in thousands, except per share data) Numerator: Net income attributable to Alpha and Omega Semiconductor Limited $ 1,861 $ 14,263 $ 13,829 Denominator: Basic: Weighted average number of common shares used to compute basic net income per share 24,063 23,901 23,526 Diluted: Weighted average number of common shares used to compute basic net income per share 24,063 23,901 23,526 Effect of potentially dilutive securities: Stock options, RSUs and ESPP shares 635 943 1,300 Weighted average number of common shares used to compute diluted net income per share 24,698 24,844 24,826 Net income per share attributable to Alpha and Omega Semiconductor Limited: Basic $ 0.08 $ 0.60 $ 0.59 Diluted $ 0.08 $ 0.57 $ 0.56 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive: Year Ended June 30, 2019 2018 2017 (in thousands) Employee stock options and RSUs 593 186 105 ESPP 512 182 19 Total potential dilutive securities 1,105 368 124 |
Revenue - (Tables)
Revenue - (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following tables compare the amounts reported in the condensed consolidated statements of income and condensed consolidated balance sheet to the amounts had the previous revenue recognition guidance been in effect: As of June 30, 2019 As Reported Adjustment Balances Without Adoption (in thousands) Accounts receivable, net $ 24,296 $ 210 $ 24,506 Accrued liabilities $ 44,075 $ (78 ) $ 43,997 Deferred margin $ — $ 1,879 $ 1,879 Income taxes payable $ 1,541 $ (59 ) $ 1,482 Deferred income tax liabilities $ 466 $ (302 ) $ 164 Retained earnings $ 125,485 $ (1,231 ) $ 124,254 Year Ended June 30, 2019 As Reported Adjustment Balances Without Adoption (in thousands) Revenue $ 450,920 $ (583 ) $ 450,337 Cost of goods sold $ 335,542 $ (302 ) $ 335,240 Gross profit $ 115,378 $ (281 ) $ 115,097 Income tax expense $ 1,256 $ (59 ) $ 1,197 Net loss including noncontrolling interest $ (14,638 ) $ (222 ) $ (14,860 ) |
Disaggregation of Revenue | The following table presents the Company's revenue information by geographical location based on the country or region to which the products were shipped. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company's distributors sell their products to end customers which may have a global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets. The revenue by geographical location in the following tables is based on the country or region in which the products were shipped to: Year Ended June 30, 2019 2018 2017 (in thousands) Hong Kong $ 355,058 $ 340,178 $ 315,223 China 81,955 71,213 59,360 South Korea 2,590 1,061 1,505 United States 7,015 5,658 4,037 Other countries 4,302 3,443 3,212 $ 450,920 $ 421,553 $ 383,337 The following is a summary of revenue by product type: Year Ended June 30, 2019 2018 2017 (in thousands) Power discrete $ 371,837 $ 342,148 $ 288,788 Power IC 70,215 67,083 82,389 Packaging and testing services 8,868 12,322 12,160 $ 450,920 $ 421,553 $ 383,337 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable June 30, 2019 2018 (in thousands) Accounts receivable $ 48,401 $ 52,687 Less: Allowance for price adjustments (24,075 ) (18,902 ) Less: Allowance for doubtful accounts (30 ) (30 ) Accounts receivable, net $ 24,296 $ 33,755 |
Schedule of Inventory, Current | Inventories June 30, 2019 2018 (in thousands) Raw materials $ 59,076 $ 47,097 Work in-process 38,214 35,243 Finished goods 14,353 7,842 $ 111,643 $ 90,182 |
Schedule of Other Current Assets | Other current assets: June 30, 2019 2018 (in thousands) VAT receivable $ 30,769 $ 17,601 Other prepaid expenses 2,745 2,121 Prepaid insurance 939 906 Prepaid maintenance 481 556 Prepayments to supplier 583 227 Prepaid income tax 267 761 Customs deposit 114 5,749 Lease financing cost 825 960 Other receivables 379 670 $ 37,102 $ 29,551 |
Property, Plant and Equipment | Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 to 30 years Manufacturing machinery and equipment 5 to 15 years Equipment and tooling 5 years Computer hardware and software 3 to 5 years Office furniture and equipment 5 years Leasehold and building improvements 2 to 20 years Land use rights 50 years Property, plant and equipment, net June 30, 2019 2018 (in thousands) Land $ 4,877 $ 4,877 Building 36,205 4,325 Manufacturing machinery and equipment 303,750 265,192 Equipment and tooling 20,739 16,605 Computer equipment and software 34,048 25,686 Office furniture and equipment 3,243 2,314 Leasehold improvements 53,597 29,900 Land use rights 8,760 9,089 465,219 357,988 Less: accumulated depreciation (252,982 ) (225,184 ) 212,237 132,804 Equipment and construction in progress 197,500 198,852 Property, plant and equipment, net $ 409,737 $ 331,656 |
Schedule of Other Assets, Noncurrent | Other long-term assets June 30, 2019 2018 (in thousands) Prepayments for property and equipment $ 4,846 $ 17,599 Investments in privately held companies 700 700 Lease financing costs 1,758 1,922 VAT long-term receivable — 3,396 Customs deposit 980 1,589 Other long-term deposits 889 2,252 Office leases deposits 1,031 853 Other 413 387 $ 10,617 $ 28,698 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net June 30, 2019 2018 (in thousands) Patents and technology rights $ 18,037 $ 17,633 Trade name 268 268 Customer relationships 1,150 1,150 19,455 19,051 Less: accumulated amortization (2,842 ) (2,729 ) 16,613 16,322 Goodwill 269 269 Intangible assets, net $ 16,882 $ 16,591 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future minimum amortization expense of intangible assets is as follows (in thousands): Year ending June 30, 2020 $ 925 2021 3,360 2022 3,360 2023 3,286 2024 3,249 Thereafter 2,433 $ 16,613 |
Schedule of Accrued Liabilities | Accrued liabilities June 30, 2019 2018 (in thousands) Accrued compensation and benefits $ 16,385 $ 18,484 Warranty accrual 623 535 Stock rotation accrual 1,921 1,750 Accrued professional fees 1,721 1,922 Accrued inventory 857 667 Accrued facilities related expenses 4,233 2,163 Accrued financing lease costs 728 1,510 Accrued property, plant and equipment 11,527 18,145 Other accrued expenses 6,080 4,665 $ 44,075 $ 49,841 |
Schedule of Product Warranty Liability | The activity in the warranty accrual, included in accrued liabilities is as follows: Year Ended June 30, 2019 2018 2017 (in thousands) Beginning balance $ 535 $ 1,866 $ 1,495 Addition 236 (147 ) 1,476 Released — (1,000 ) (580 ) Utilization (148 ) (184 ) (525 ) Ending balance $ 623 $ 535 $ 1,866 |
Stock Rotation Accrual | The activity in the stock rotation accrual, included in accrued liabilities is as follows: Year Ended June 30, 2019 2018 2017 (in thousands) Beginning balance $ 1,750 $ 1,871 $ 1,988 Addition 5,267 2,714 4,819 Utilization (5,096 ) (2,835 ) (4,936 ) Ending balance $ 1,921 $ 1,750 $ 1,871 |
Deferred Margin | Deferred margin Deferred margin consists of the following: June 30, 2019 2018 (in thousands) Deferred revenue $ — $ 2,555 Deferred costs — (890 ) Deferred margin $ — $ 1,665 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities: June 30, June 30, (in thousands) Deferred rent $ 65 $ 238 Customer deposits 10,000 * — Computer software liabilities 3,701 — Other 155 755 Other long-term liabilities $ 13,921 $ 993 * Customer deposit from our customer A and customer B for securing future shipment from the Company |
Concentration of Credit Risk _2
Concentration of Credit Risk and Significant Customers (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts: Year Ended June 30, Percentage of revenue 2019 2018 2017 Customer A 28.8 % 28.3 % 26.9 % Customer B 36.4 % 35.2 % 35.8 % Customer C * * 10.6 % June 30, Percentage of accounts receivable 2019 2018 Customer A 12.1 % 17.1 % Customer B 19.7 % 35.5 % Customer C 18.1 % 10.6 % Customer D 13.3 % * * Less than 10% |
Bank borrowings (Tables)
Bank borrowings (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Capital Leased Assets | Capital lease liabilities include the following: June 30, 2019 2018 (in thousands) Financing lease $ 54,736 $ 60,416 Computer software — 843 Exclusive technology rights — 23 54,736 61,282 Less: current portion (11,355 ) (4,491 ) Capital leases - long-term portion $ 43,381 $ 56,791 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments at June 30, 2019 are as follows (in thousands): Year ending June 30, 2020 $ 14,219 2021 17,799 2022 16,928 2023 12,269 Total minimum lease payments 61,215 Less amount representing interest (6,479 ) Total capital lease liabilities $ 54,736 |
Fiscal Year Maturity Schedule | At June 30, 2019 , maturities of short-term debt and long-term debt were as follows (in thousands): Year ending June 30, 2020 $ 26,682 2021 9,796 2022 15,036 2023 22,725 2024 6,696 Thereafter 5,242 Total principal of debt 86,177 Less: debt issuance costs (188 ) Total principal of debt, less debt issuance costs $ 85,989 Short-term Debt Long-term Debt Principal amount $ 26,682 $ 59,495 Less: debt issuance costs (73 ) (115 ) Total debt, less debt issuance costs $ 26,609 $ 59,380 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of Stock Option Activities | The following table summarizes the Company's stock option activities: Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Aggregate Shares Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2016 1,859,260 $ 11.37 4.71 Granted — $ — Exercised (693,393 ) $ 11.76 $ 5,681,783 Canceled or forfeited (112,500 ) $ 12.72 Outstanding at June 30, 2017 1,053,367 $ 10.98 4.43 Granted — $ — Exercised (166,389 ) $ 11.00 $ 959,257 Canceled or forfeited — $ — Outstanding at June 30, 2018 886,978 $ 10.97 4.03 Granted — $ — Exercised (10,500 ) $ 10.50 $ 43,415 Canceled or forfeited — $ — Outstanding at June 30, 2019 876,478 $ 10.98 3.06 $ 758,871 Options vested and expected to vest 876,478 $ 10.98 3.06 $ 758,871 Exercisable at June 30, 2019 876,478 $ 10.98 3.06 $ 758,871 |
Shares Authorized under Stock Option Plans, by Exercise Price Range | Information with respect to stock options outstanding and exercisable as of June 30, 2019 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted-Average Weighted-Average Number Weighted-Average $7.21 - $7.21 6,875 4.58 $ 7.21 6,875 $ 7.21 $7.44 - $7.44 331,139 4.71 $ 7.44 331,139 $ 7.44 $7.56 - $9.90 195,150 3.71 $ 8.93 195,150 $ 8.93 $10.50 - $15.00 178,314 1.30 $ 13.45 178,314 $ 13.45 $17.90 - $18.00 165,000 0.83 $ 17.99 165,000 $ 17.99 $7.21 - $18.00 876,478 3.06 $ 10.98 876,478 $ 10.98 |
Restricted Stock Units Activity | The following table summarizes the Company's MSUs activities: Number of Performance-based Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Nonvested at June 30, 2018 — $ — — Granted 1,310,000 $ 5.17 Vested — $ — Forfeited (20,000 ) $ 5.17 Nonvested at June 30, 2019 1,290,000 $ 5.17 4.97 MSUs vested and expected to vest 948,998 4.97 The following table summarizes the Company's PRSU activities: Number of Performance-based Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Aggregate Intrinsic Value Nonvested at June 30, 2016 — $ — — $ — Granted 170,000 $ 17.58 Vested — $ — Forfeited — $ — Nonvested at June 30, 2017 170,000 $ 17.58 2.21 $ 2,833,900 Granted 298,050 $ 16.22 Vested (38,247 ) $ 17.58 Forfeited (7,503 ) $ 17.26 Nonvested at June 30, 2018 422,300 $ 16.63 2.06 $ 6,013,552 Granted 291,750 $ 11.18 Vested (111,623 ) $ 16.68 Forfeited (5,703 ) $ 16.78 Nonvested at June 30, 2019 596,724 $ 13.95 1.88 $ 5,573,402 The following table summarizes the Company's TRSU activities: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Aggregate Intrinsic Value Nonvested at June 30, 2016 933,063 $ 9.18 1.73 $ 12,997,568 Granted 446,719 $ 18.26 Vested (364,567 ) $ 8.34 Forfeited (40,850 ) $ 12.74 Nonvested at June 30, 2017 974,365 $ 13.51 1.68 $ 16,244,748 Granted 482,397 $ 16.46 Vested (468,051 ) $ 13.24 Forfeited (69,688 ) $ 14.25 Nonvested at June 30, 2018 919,023 $ 15.14 1.62 $ 13,086,888 Granted 527,022 $ 11.28 Vested (499,954 ) $ 13.09 Forfeited (39,750 ) $ 13.82 Nonvested at June 30, 2019 906,341 $ 14.09 1.62 $ 8,465,225 |
Employee Stock Purchase Plan, Valuation Assumptions | The ESPP is compensatory and results in compensation expense. The fair values of common shares to be issued under the ESPP were determined using the Black-Scholes option pricing model with the following assumptions: Year Ended June 30, 2019 2018 2017 Volatility rate 40.1% - 40.7% 42.1% - 45.3% 39.1% - 44.7% Risk-free interest rate 2.1% - 2.9% 1.4% - 2.6% 0.6% - 1.3% Expected term 1.3 years 1.3 years 1.3 years Dividend yield —% —% —% |
Share-based Compensation, Allocation of Recognized Period Costs | Share-based Compensation Expenses The total share-based compensation expense related to TRSU, PSUs, MSUs, stock options and ESPP described above, recognized in the consolidated statements of operations for the years presented was as follows: Year Ended June 30, 2019 2018 2017 (in thousands) Cost of goods sold $ 1,963 $ 1,641 $ 1,041 Research and development 2,453 1,855 1,361 Selling, general and administrative 8,761 7,916 4,232 $ 13,177 $ 11,412 $ 6,634 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for (benefit from) income taxes | The provision for income taxes is comprised of: Year Ended June 30, 2019 2018 2017 (in thousands) U.S. federal taxes: Current $ (57 ) $ 55 $ 1,043 Deferred (510 ) (1,943 ) (325 ) Non-U.S. taxes: Current 1,765 2,898 (4,615 ) Deferred 55 (298 ) 7,548 State taxes, net of federal benefit: Current 3 (4 ) 1 Total provision for income taxes $ 1,256 $ 708 $ 3,652 |
Effective income tax rate reconciliation | The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows (in percentage): |
Domestic and foreign components of income (loss) | The domestic and foreign components of income before taxes are: Year Ended June 30, 2019 2018 2017 (in thousands) U.S. operations $ 4,100 $ 4,219 $ 4,016 Non-U.S. operations (17,482 ) 1,437 8,896 Income before income taxes $ (13,382 ) $ 5,656 $ 12,912 |
Components of deferred tax assets and liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: June 30, 2019 2018 (in thousands) Deferred tax assets: Accrued compensation $ 1,428 $ 2,121 Net operating loss carryforwards 16,782 7,213 Depreciation 10,036 10,968 Tax credits 10,882 8,380 Capitalized intangible assets 11,981 12,942 Capitalized Costs — 2,292 Accruals and reserves 1,000 1,197 Total deferred tax assets 52,109 45,113 Valuation allowance (35,420 ) (30,105 ) Total deferred tax assets, net of valuation allowance 16,689 15,008 Deferred tax liabilities: Depreciation and amortization (12,243 ) (10,819 ) Accruals and reserves (90 ) (10 ) Total deferred tax liabilities (12,333 ) (10,829 ) Net deferred tax assets $ 4,356 $ 4,179 |
Schedule of deferred tax assets and liabilities, current and noncurrent | The breakdown between deferred tax assets and liabilities is as follows: June 30, 2019 2018 (in thousands) Long-term deferred tax assets $ 4,822 $ 4,892 Long-term deferred tax liabilities (466 ) (713 ) Net deferred tax assets $ 4,356 $ 4,179 |
Unrecognized tax benefits rollforward | A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2016 to June 30, 2019 is as follows: Year Ended June 30, 2019 2018 2017 (in thousands) Balance at beginning of year $ 7,143 $ 6,589 $ 6,743 Additions based on tax positions related to the current year 417 721 401 Reductions based on tax positions related to prior years (271 ) (11 ) (4 ) Reductions due to lapse of applicable statute of limitations (139 ) (156 ) (551 ) Balance at end of year $ 7,150 $ 7,143 $ 6,589 At June 30, 2019 , the total unrecognized tax benefits of $7.2 million included $6.3 million of unrecognized tax benefits that have been netted against the related deferred tax assets. The remaining $0.9 million of unrecognized tax benefits was recorded within long-term income tax payable on the Company's consolidated balance sheet as of June 30, 2019 . The Company cannot reasonably estimate the timing and amount of potential cash settlements on the unrecognized tax benefits. The total unrecognized tax benefits of $7.2 million at June 30, 2019 included $4.2 million that, if recognized, would reduce the effective income tax rate in future periods. |
Segment and Geographic inform_2
Segment and Geographic information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Long-lived assets, net consisting of property, plant and equipment and land use rights, net by geographical area are as follows: June 30, 2019 2018 (in thousands) China $ 321,145 $ 248,003 United States 87,817 83,040 Other countries 775 613 $ 409,737 $ 331,656 For our revenues by geography, please refer to Note 2. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, future minimum lease payments | Future minimum lease payments of these leases at June 30, 2019 are as follows: Year ending June 30, Operating (in thousands) 2020 $ 4,357 2021 1,741 2022 1,164 2023 894 2024 1,002 Thereafter 149 $ 9,307 |
The Company and Significant A_4
The Company and Significant Accounting Policies (Details) ¥ in Millions | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019CNY (¥) | Jan. 10, 2017USD ($) | Jan. 10, 2017CNY (¥) |
Significant Accounting Policies [Line Items] | |||||||||
Restricted cash - long-term | $ 2,038,000 | $ 2,038,000 | $ 0 | $ 2,038,000 | |||||
Impairment of long-lived assets | $ 0 | 0 | $ 0 | ||||||
Length of product warranty | 1 year | ||||||||
Advertising expense | $ 600,000 | $ 400,000 | $ 400,000 | ||||||
Equipment and tooling [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Office furntiture and equipment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Land use rights [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 50 years | ||||||||
Internally developed software [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Minimum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Length of economic benefit to capitalize internal use software development costs | 1 year | ||||||||
Minimum | Building [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 20 years | ||||||||
Minimum | Manufacturing machinery and equipment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Minimum | Computer equipment and software [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 3 years | ||||||||
Minimum | Leasehold improvements [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 2 years | ||||||||
Maximum | Building [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 30 years | ||||||||
Maximum | Manufacturing machinery and equipment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 15 years | ||||||||
Maximum | Computer equipment and software [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Maximum | Leasehold improvements [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, useful life | 20 years | ||||||||
Software Development [Member] | Minimum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 3 years | ||||||||
Software Development [Member] | Maximum | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 5 years | ||||||||
Supplier Concentration Risk [Member] | Cost of Goods and Service, Product and Service Benchmark [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Percent of wafers manufactured | 14.10% | 15.40% | 18.60% | ||||||
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Simple Annual Interest Rate to Noncontrolling Interest if Joint Venture is Early Terminated and Liquidated | 10.00% | ||||||||
Parent Company | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 51.00% | ||||||||
Chongqing Funds | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 49.00% | ||||||||
Corporate Joint Venture | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Contractual Obligation | $ 78,000,000 | ¥ 540 | |||||||
Contractual Obligation, Payment | 69,900,000 | ¥ 480 | |||||||
Contractual Obligation Future Minimum Payments Due in Fiscal Year 2020 | $ 8,700,000 | $ 8,700,000 | $ 8,700,000 | ¥ 60 | |||||
Design Fees [Member] | Corporate Joint Venture | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Contractual Obligation | 2,800,000 | ||||||||
Construction and Procurement Fees | Corporate Joint Venture | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Contractual Obligation | $ 75,200,000 |
Net Income (Loss) Per Share -
Net Income (Loss) Per Share - Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net loss | $ 1,861 | $ 14,263 | $ 13,829 |
Basic: | |||
Weighted average number of common shares used to compute basic net income (loss) per share | 24,063 | 23,901 | 23,526 |
Effect of potentially dilutive securities: | |||
Stock options, RSUs and ESPP shares | 635 | 943 | 1,300 |
Weighted average number of common shares used to compute diluted net income (loss) per share | 24,698 | 24,844 | 24,826 |
Net income (loss) per share attributable to common shareholders: | |||
Basic (in dollars per share) | $ 0.08 | $ 0.60 | $ 0.59 |
Diluted (in dollars per share) | $ 0.08 | $ 0.57 | $ 0.56 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
Disaggregation of Revenue [Line Items] | |||
Changed in deferred margin | $ 0 | $ (1,665) | |
Change in accounts receivable | (24,296) | (33,755) | |
Change in accrued liabilities | 44,075 | 49,841 | |
Change in deferred tax assets | 466 | $ 713 | |
Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Net increase to opening retained earnings | $ 1,000 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Changed in deferred margin | 1,879 | 1,600 | |
Change in accounts receivable | 210 | 200 | |
Change in accrued liabilities | $ 78 | 100 | |
Change in deferred tax assets | $ 300 |
Net Income (Loss) Per Share _2
Net Income (Loss) Per Share - Potential Dilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 635 | 943 | 1,300 |
Potential dilutive securities (in shares) | 1,105 | 368 | 124 |
Employee stock options and RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential dilutive securities (in shares) | 593 | 186 | 105 |
ESPP [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential dilutive securities (in shares) | 512 | 182 | 19 |
Revenue - Effect on Balance She
Revenue - Effect on Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 24,296 | $ 33,755 | |
Accrued liabilities | 44,075 | 49,841 | |
Deferred margin | 0 | 1,665 | |
Income taxes payable | 1,541 | 2,211 | |
Deferred income tax liabilities | 466 | 713 | |
Retained earnings | 125,485 | $ 122,639 | |
Adjustment | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | (210) | $ (200) | |
Accrued liabilities | 78 | 100 | |
Deferred margin | (1,879) | $ (1,600) | |
Income taxes payable | 59 | ||
Deferred income tax liabilities | 302 | ||
Retained earnings | 1,231 | ||
Balances Without Adoption | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 24,506 | ||
Accrued liabilities | 43,997 | ||
Deferred margin | 1,879 | ||
Income taxes payable | 1,482 | ||
Deferred income tax liabilities | 164 | ||
Retained earnings | $ 124,254 |
Revenue - Effect on Income Stat
Revenue - Effect on Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue | $ 450,920 | $ 421,553 | $ 383,337 |
Cost of goods sold | 335,542 | 309,625 | 291,516 |
Gross profit | 115,378 | 111,928 | 91,821 |
Income tax expense | 1,256 | 708 | 3,652 |
Net income (loss) including noncontrolling interest | (14,638) | $ 4,948 | $ 9,260 |
Adjustment | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue | (583) | ||
Cost of goods sold | (302) | ||
Gross profit | (281) | ||
Income tax expense | (59) | ||
Net income (loss) including noncontrolling interest | (222) | ||
Balances Without Adoption | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue | 450,337 | ||
Cost of goods sold | 335,240 | ||
Gross profit | 115,097 | ||
Income tax expense | 1,197 | ||
Net income (loss) including noncontrolling interest | $ (14,860) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 450,920 | $ 421,553 | $ 383,337 |
Hong Kong | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 355,058 | 340,178 | 315,223 |
China | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 81,955 | 71,213 | 59,360 |
South Korea | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,590 | 1,061 | 1,505 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,015 | 5,658 | 4,037 |
Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 4,302 | 3,443 | 3,212 |
Power discrete [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 371,837 | 342,148 | 288,788 |
Power IC [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 70,215 | 67,083 | 82,389 |
Packaging and testing services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 8,868 | $ 12,322 | $ 12,160 |
Balance Sheet Components - Acc
Balance Sheet Components - Accounts receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 48,401 | $ 52,687 |
Less: Allowance for price adjustments | (24,075) | (18,902) |
Less: Allowance for doubtful accounts | (30) | (30) |
Accounts receivable, net | $ 24,296 | $ 33,755 |
Concentration of Credit Risk _3
Concentration of Credit Risk and Significant Customers (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Minimum | |||
Concentration Risk | |||
Terms of credit sales, (in days) | 30 days | ||
Maximum | |||
Concentration Risk | |||
Terms of credit sales, (in days) | 60 days | ||
Customer A [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 28.80% | 28.30% | 26.90% |
Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 12.10% | 17.10% | |
Customer B [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 36.40% | 35.20% | 35.80% |
Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 19.70% | 35.50% | |
Customer C [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 10.60% | ||
Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 18.10% | 10.60% | |
Customer D [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Customers greater than 10% of total | 13.30% |
Balance Sheet Components - Inv
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 59,076 | $ 47,097 |
Work in-process | 38,214 | 35,243 |
Finished goods | 14,353 | 7,842 |
Inventories | $ 111,643 | $ 90,182 |
Balance Sheet Components - Oth
Balance Sheet Components - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
VAT receivable | $ 30,769 | $ 17,601 |
Other prepaid expenses | 2,745 | 2,121 |
Prepaid insurance | 939 | 906 |
Prepaid maintenance | 481 | 556 |
Prepayments to supplier | 583 | 227 |
Prepaid income tax | 267 | 761 |
Customs deposit | 114 | 5,749 |
Lease financing cost | 825 | 960 |
Other receivables | 379 | 670 |
Total other current assets | $ 37,102 | $ 29,551 |
Balance Sheet Components - Pro
Balance Sheet Components - Property, plant, and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | $ 465,219 | $ 357,988 | |
Land Use Rights, Gross | 8,760 | 9,089 | |
Less accumulated depreciation | (252,982) | (225,184) | |
Property, plant and equipment excluding equipment and construction in progress, net | 212,237 | 132,804 | |
Equipment and construction in progress | 197,500 | 198,852 | |
Property, plant and equipment, net | 409,737 | 331,656 | |
Depreciation expense | 31,900 | 29,200 | $ 27,200 |
Capitalized software development costs | 800 | 300 | 200 |
Capitalized Computer Software, Amortization | 500 | 600 | $ 600 |
Unamortized capitalized software development costs | 900 | 700 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 4,877 | 4,877 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 36,205 | 4,325 | |
Manufacturing machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 303,750 | 265,192 | |
Equipment and tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 20,739 | 16,605 | |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 34,048 | 25,686 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 3,243 | 2,314 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 53,597 | 29,900 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Gross amount of computer software recorded under capital lease | 13,700 | 8,200 | |
Accumulated depreciation on computer software recorded under capital lease | $ 8,200 | $ 7,300 |
Balance Sheet Components - Goo
Balance Sheet Components - Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | |||
Goodwill | $ 269 | $ 269 | $ 300 |
Balance Sheet Components - O_2
Balance Sheet Components - Other long term assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepayments for property and equipment | $ 4,846 | $ 17,599 |
Investments in privately held companies | 700 | 700 |
Lease financing costs | 1,758 | 1,922 |
VAT long-term receivable | 0 | 3,396 |
Customs deposit | 980 | 1,589 |
Other long-term deposits | 889 | 2,252 |
Office leases deposits | 1,031 | 853 |
Other | 413 | 387 |
Other long-term assets | $ 10,617 | $ 28,698 |
Balance Sheet Components - Fut
Balance Sheet Components - Future amortization expense of intangible assets (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 925 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,360 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,360 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,286 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 3,249 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 2,433 |
Intangible assets, net | $ 16,613 |
Balance Sheet Components - Int
Balance Sheet Components - Intangible assets (Details) - USD ($) | Sep. 05, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Payments to Acquire Intangible Assets | $ 405,000 | $ 16,384,000 | $ 0 | |
Intangible assets, gross | 19,455,000 | 19,051,000 | ||
Less accumulated amortization | (2,842,000) | (2,729,000) | ||
Intangible Assets, Net (Excluding Goodwill) | 16,613,000 | 16,322,000 | ||
Goodwill | 269,000 | 269,000 | 300,000 | |
Intangible assets, net | 16,882,000 | 16,591,000 | ||
Amortization expense | 113,000 | 76,000 | $ 0 | |
Patents and exclusive technology rights [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | 18,037,000 | 17,633,000 | ||
Trade name [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | 268,000 | 268,000 | ||
Customer relationships [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | 1,150,000 | $ 1,150,000 | ||
STMicro [Member] | Licensing Agreements [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Payments to Acquire Intangible Assets | $ 17,000,000 | $ 16,200,000 | ||
Payments to Acquire Intangible Assets in Calender year 2017 | 10,100,000 | |||
Payments to Acquire Intangible Assets in Calender Year 2018 | 6,700,000 | |||
Payments to Acquire Intangible Assets in Calendar Year 2019 | $ 200,000 |
Balance Sheet Components - A_2
Balance Sheet Components - Accrued liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued compensation and benefits | $ 16,385 | $ 18,484 | ||
Warranty accrual | 623 | 535 | $ 1,866 | $ 1,495 |
Stock rotation accrual | 1,921 | 1,750 | $ 1,871 | $ 1,988 |
Accrued professional fees | 1,721 | 1,922 | ||
Accrued inventory | 857 | 667 | ||
Accrued facilities related expenses | 4,233 | 2,163 | ||
Accrued financing lease costs | 728 | 1,510 | ||
Accrued property, plant and equipment | 11,527 | 18,145 | ||
Other accrued expenses | 6,080 | 4,665 | ||
Accrued liabilities | $ 44,075 | $ 49,841 |
Balance Sheet Components - P_2
Balance Sheet Components - Product Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $ 535 | $ 1,866 | $ 1,495 |
Addition | 236 | (147) | 1,476 |
Released | 0 | (1,000) | (580) |
Utilization | (148) | (184) | (525) |
Ending balance | $ 623 | $ 535 | $ 1,866 |
Balance Sheet Components - Sto
Balance Sheet Components - Stock Rotation Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock Rotation Accrual Increae (Decrease) [Roll Forward] | |||
Beginning balance | $ 1,750 | $ 1,871 | $ 1,988 |
Addition | 5,267 | 2,714 | 4,819 |
Utilization | (5,096) | (2,835) | (4,936) |
Ending balance | $ 1,921 | $ 1,750 | $ 1,871 |
Balance Sheet Components - Def
Balance Sheet Components - Deferred Margin (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred revenue | $ 0 | $ 2,555 |
Deferred costs | 0 | (890) |
Deferred margin | $ 0 | $ 1,665 |
Balance Sheet Components - Imp
Balance Sheet Components - Impairment of long-lived assets, intangible assets, and goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |||
Capitalized Computer Software, Amortization | $ 500 | $ 600 | $ 600 |
Goodwill | $ 269 | $ 269 | $ 300 |
Balance Sheet Components - Othe
Balance Sheet Components - Other long-term liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred rent | $ 65 | $ 238 |
Customer deposits | 10,000 | 0 |
Computer software liabilities | 3,701 | 0 |
Other | 155 | 755 |
Other long-term liabilities | $ 13,921 | $ 993 |
Bank borrowings - Short-term bo
Bank borrowings - Short-term borrowing (Details) | 1 Months Ended | ||||||||||
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2019CNY (¥) | Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 21, 2019CNY (¥)Rate | Dec. 04, 2018CNY (¥) | Nov. 30, 2018USD ($) | Nov. 29, 2018CNY (¥) | Nov. 16, 2018USD ($) | Nov. 16, 2018CNY (¥) | |
Loan Agreement November 29, 2018 | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, face amount | ¥ 80,000,000 | ||||||||||
Short-term debt | ¥ 80,000,000 | ||||||||||
Loan Agreement December 04, 2018 | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 14,500,000 | ¥ 20,000,000 | |||||||||
Short-term debt | 20,000,000 | ||||||||||
Loan Agreements November 29 and December 02 2018 | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Short-term debt | $ | $ 14,600,000 | ||||||||||
Loans Payable | Loan Agreement March, 21, 2019 | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Debt instrument, face amount | $ 3,000,000 | ¥ 20,000,000 | |||||||||
Interest rate | Rate | 5.44% | ||||||||||
Short-term debt | 2,900,000 | ¥ 20,000,000 | |||||||||
Industrial And Commercial Bank of China | Foreign Line of Credit | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Interest rate | 4.57% | 3.64% | |||||||||
Short-term debt | 0 | $ 10,500,000 | $ 5,000,000 | $ 10,300,000 | ¥ 72,000,000 | ||||||
Repayment of short-term debt | $ | $ 10,500,000 | $ 5,000,000 |
Bank borrowings - Narrative (De
Bank borrowings - Narrative (Details) $ in Millions | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Mar. 12, 2019USD ($) | May 09, 2018USD ($) | Aug. 15, 2017USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Jun. 30, 2019CNY (¥) | Mar. 12, 2019CNY (¥) | Jul. 31, 2018USD ($) | May 09, 2018CNY (¥) | May 01, 2018USD ($) | Jan. 12, 2018USD ($) |
Secured Debt | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 17.8 | ||||||||||||
Amount outstanding | $ 16.8 | ||||||||||||
Stated interest rate | 5.04% | ||||||||||||
Variable Interest Rate Term Loan Maturing August 2022 | Secured Debt | Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 30 | ||||||||||||
Amount outstanding | 24.2 | $ 16.7 | $ 13.2 | ||||||||||
Debt term | 5 years | ||||||||||||
Variable Interest Rate Term Loan Maturing August 2022 | Minimum | LIBOR | Secured Debt | Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Basis spread on variable rate | 1.75% | ||||||||||||
Variable Interest Rate Term Loan Maturing August 2022 | Maximum | LIBOR | Secured Debt | Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Basis spread on variable rate | 2.25% | ||||||||||||
YinHai Leasing Company and China Import/Export Bank | Lease Financing | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 62.8 | ¥ 400,000,000 | |||||||||||
Sale leaseback transaction, nominal amount for selling equipment back to joint venture | ¥ | ¥ 1 | ||||||||||||
Amount outstanding | 54.7 | ¥ 376,000,000 | |||||||||||
Export-Import Bank Of China [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Restricted cash | $ 2 | ¥ 14,000,000 | |||||||||||
Line of credit facility, maximum month-end outstanding amount | $ 27.7 | ¥ 190,000,000 | |||||||||||
Export-Import Bank Of China [Member] | Secured Debt | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 29.8 | ¥ 200,000,000 | |||||||||||
Proceeds from lines of credit | $ 28.3 | ¥ 190,000,000 | |||||||||||
China Base Rate multiplier | 1.1 | ||||||||||||
Interest rate during period including China Base Rate | 5.39% | ||||||||||||
Period for payments of principal | 6 months | ||||||||||||
China | YinHai Leasing Company and China Import/Export Bank | Lease Financing | Base Rate | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Basis spread multiple | 1.15 | 1.15 | |||||||||||
Basis spread on variable rate | 5.4625% |
Bank borrowings - Capital Lease
Bank borrowings - Capital Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Capital Leased Assets [Line Items] | ||
Total capital lease liabilities | $ 54,736 | $ 61,282 |
Less: current portion | (11,355) | (4,491) |
Capital leases - long-term portion | 43,381 | 56,791 |
Financing lease | ||
Capital Leased Assets [Line Items] | ||
Total capital lease liabilities | 54,736 | 60,416 |
Computer software | ||
Capital Leased Assets [Line Items] | ||
Total capital lease liabilities | 0 | 843 |
Exclusive technology rights | ||
Capital Leased Assets [Line Items] | ||
Total capital lease liabilities | $ 0 | $ 23 |
Bank borrowings - Capital Lea_2
Bank borrowings - Capital Leases, Future Minimum Payments, Fiscal Year Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 14,219 | |
2021 | 17,799 | |
2022 | 16,928 | |
2023 | 12,269 | |
Total minimum lease payments | 61,215 | |
Less amount representing interest | (6,479) | |
Total capital lease liabilities | 54,736 | $ 61,282 |
Capital leases | 11,355 | 4,491 |
Capital leases - long-term portion | $ 43,381 | $ 56,791 |
Bank borrowings - Maturities of
Bank borrowings - Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 26,682 | |
2021 | 9,796 | |
2022 | 15,036 | |
2023 | 22,725 | |
2024 | 6,696 | |
Thereafter | 5,242 | |
Total principal of debt | 86,177 | |
Less: debt issuance costs | (188) | |
Total principal of debt, less debt issuance costs | 85,989 | |
Short-term Debt | ||
Principal amount | 26,682 | |
Less: debt issuance costs | (73) | |
Total debt, less debt issuance costs | 26,609 | |
Long-term Debt | ||
Principal amount | 59,495 | |
Less: debt issuance costs | (115) | |
Principal amount | $ 59,380 | $ 26,786 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | 104 Months Ended | ||||
Jun. 30, 2019USD ($)votes$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017shares | Jun. 30, 2019USD ($)$ / sharesshares | Nov. 08, 2017shares | Nov. 07, 2017shares | |
Common Shares | ||||||
Common shares, authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 50,000,000 | |
Common shares, par value (in dollars per share) | $ 0.002 | $ 0.002 | $ 0.002 | |||
Common stock, dividends declared per share | $ 0 | |||||
Number of Votes Per Each Common Share | votes | 1 | |||||
Treasury Shares | ||||||
Share repurchase program, authorized amount | $ | $ 30,000 | $ 30,000 | ||||
Share repurchase program, remaining authorized amount | $ | $ 13,400 | $ 13,400 | ||||
Treasury stock acquired, shares repurchased (in shares) | shares | 111,509 | 950,046 | 0 | 6,784,648 | ||
Treasury stock acquired less handling fees | $ | $ 1,500 | $ 15,100 | ||||
Treasury stock acquired | $ | $ 1,501 | $ 15,098 | $ 67,300 | |||
Treasury stock acquired, average price per share (in dollars per share) | $ 13.43 | $ 15.86 | $ 9.92 | |||
Treasury stock retired (in shares) | shares | 0 | |||||
Treasury stock reissued average price per share | 5.55 | |||||
Treasury Stock Reissued [Member] | ||||||
Treasury Shares | ||||||
Treasury stock acquired, average price per share (in dollars per share) | $ 10.41 | |||||
Treasury stock reissued (in shares) | shares | 138,828 |
- Narrative (Details)
- Narrative (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 18, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Remaining Recognition Period (Years) | 2 years 7 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | |
Market-based Restricted Stock Units (MSU) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Remaining Recognition Period (Years) | 4 years 11 months 19 days | 0 years | ||
2018 Omnibus Incentive Plan [Member] | Stock Options [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant price, percent of fair value of common stock at date of grant | 100.00% | |||
2018 Omnibus Incentive Plan [Member] | Nonstatutory Stock Options [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant price, percent of fair value of common stock at date of grant | 85.00% | |||
2018 Omnibus Incentive Plan [Member] | Employee stock options and RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accumulation period | 6 months | |||
Stock options exercisable term (in years) | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 733,821 | |||
2018 Omnibus Incentive Plan [Member] | Employee stock options and RSUs [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
2018 Omnibus Incentive Plan [Member] | Employee stock options and RSUs [Member] | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized under plan (in shares) | 1,265,000 | |||
Award vesting period (in years) | 5 years | |||
2018 Omnibus Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant price, percent of fair value of common stock at date of grant | 100.00% | |||
2018 Omnibus Incentive Plan [Member] | External Board Members [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, value | $ 95,000 |
Share-based Compensation - Res
Share-based Compensation - Restricted Stock and Performance-based Restrcited Stock Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||
Allocated share-based compensation expense | $ 13,177,000 | $ 11,412,000 | $ 6,634,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Weighted Average Remaining Recognition Period (Years) | 2 years 7 days | ||||
Market-based Restricted Stock Units (MSU) [Member] | |||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||
Allocated share-based compensation expense | $ 400,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonvested (in shares) | 0 | 0 | |||
Granted (in shares) | 1,310,000 | 1,310,000 | |||
Vested (in shares) | 0 | ||||
Forfeited (in shares) | (20,000) | ||||
Nonvested (in shares) | 1,290,000 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Nonvested (in dollars per share) | $ 0 | $ 0 | |||
Granted (in dollars per share) | 5.17 | ||||
Vested (in dollars per share) | 0 | ||||
Forfeited (in dollars per share) | 5.17 | ||||
Nonvested (in dollars per share) | $ 5.17 | $ 0 | |||
Weighted Average Remaining Recognition Period (Years) | 4 years 11 months 19 days | 0 years | |||
Risk-free interest rate | 2.70% | ||||
Expected term (in years) | 3 years 6 months | ||||
Volatility rate | 38.80% | ||||
Dividend yield | 0.00% | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonvested (in shares) | 919,023 | 919,023 | 974,365 | 933,063 | |
Granted (in shares) | 527,022 | 482,397 | 446,719 | ||
Vested (in shares) | (499,954) | (468,051) | (364,567) | ||
Forfeited (in shares) | (39,750) | (69,688) | (40,850) | ||
Nonvested (in shares) | 906,341 | 919,023 | 974,365 | 933,063 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Nonvested (in dollars per share) | $ 15.14 | $ 15.14 | $ 13.51 | $ 9.18 | |
Granted (in dollars per share) | 11.28 | 16.46 | 18.26 | ||
Vested (in dollars per share) | 13.09 | 13.24 | 8.34 | ||
Forfeited (in dollars per share) | 13.82 | 14.25 | 12.74 | ||
Nonvested (in dollars per share) | $ 14.09 | $ 15.14 | $ 13.51 | $ 9.18 | |
Weighted Average Remaining Recognition Period (Years) | 1 year 7 months 13 days | 1 year 7 months 13 days | 1 year 8 months 5 days | 1 year 8 months 23 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 8,465,225 | $ 13,086,888 | $ 16,244,748 | $ 12,997,568 | |
Performance Based Restricted Stock Units (PRSUs) Member [Member] | |||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||
Allocated share-based compensation expense | $ 2,800,000 | $ 1,900,000 | $ 500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonvested (in shares) | 422,300 | 422,300 | 170,000 | 0 | |
Granted (in shares) | 291,750 | 298,050 | 170,000 | ||
Vested (in shares) | (111,623) | (38,247) | 0 | ||
Forfeited (in shares) | (5,703) | (7,503) | 0 | ||
Nonvested (in shares) | 596,724 | 422,300 | 170,000 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Nonvested (in dollars per share) | $ 16.63 | $ 16.63 | $ 17.58 | $ 0 | |
Granted (in dollars per share) | 11.18 | 16.22 | 17.58 | ||
Vested (in dollars per share) | 16.68 | 17.58 | 0 | ||
Forfeited (in dollars per share) | 16.78 | 17.26 | 0 | ||
Nonvested (in dollars per share) | $ 13.95 | $ 16.63 | $ 17.58 | $ 0 | |
Weighted Average Remaining Recognition Period (Years) | 1 year 10 months 17 days | 2 years 22 days | 2 years 2 months 16 days | 0 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 5,573,402 | $ 6,013,552 | $ 2,833,900 | $ 0 | |
Performance Based Restricted Stock Units (PRSUs) Granted In 2018 [Member] | |||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||
Grants in period, shares earned | 295,300 | ||||
Performance Based Restricted Stock Units (PRSUs) Granted In 2017 [Member] | |||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||||
Grants in period, shares earned | 153,000 | ||||
Minimum | Market-based Restricted Stock Units (MSU) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years 6 months | ||||
Maximum | Market-based Restricted Stock Units (MSU) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 7 years 6 months |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Market-based Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Weighted Average Remaining Recognition Period (Years) | 2 years 7 days | |||
Allocated share-based compensation expense | $ 13,177 | $ 11,412 | $ 6,634 | |
Market-based Restricted Stock Units (MSU) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 3 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested (in shares) | 0 | 0 | ||
Granted (in shares) | 1,310,000 | 1,310,000 | ||
Vested (in shares) | 0 | |||
Forfeited (in shares) | (20,000) | |||
Nonvested (in shares) | 1,290,000 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Nonvested (in dollars per share) | $ 0 | $ 0 | ||
Granted (in dollars per share) | 5.17 | |||
Vested (in dollars per share) | 0 | |||
Forfeited (in dollars per share) | 5.17 | |||
Nonvested (in dollars per share) | $ 5.17 | $ 0 | ||
Weighted Average Remaining Recognition Period (Years) | 4 years 11 months 19 days | 0 years | ||
Vested and expected to vest (in shares) | 948,998 | |||
Vested and expected to vest (in years) | 4 years 11 months 19 days | |||
Risk-free interest rate | 2.70% | |||
Volatility rate | 38.80% | |||
Dividend yield | 0.00% | |||
Allocated share-based compensation expense | $ 400 | |||
Market-based Restricted Stock Units (MSU) [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years 6 months | |||
Market-based Restricted Stock Units (MSU) [Member] | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 7 years 6 months |
Share-based Compensation - Sum
Share-based Compensation - Summary of Stock Option Activities (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding (in shares) | 886,978 | 1,053,367 | 1,859,260 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (10,500) | (166,389) | (693,393) | |
Canceled or forfeited (in shares) | 0 | 0 | (112,500) | |
Outstanding (in shares) | 876,478 | 886,978 | 1,053,367 | 1,859,260 |
Options vested and expected to vest (in shares) | 876,478 | |||
Exercisable (in shares) | 876,478 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding (in dollars per share) | $ 10.97 | $ 10.98 | $ 11.37 | |
Granted (in dollars per share) | 0 | 0 | 0 | |
Exercised (in dollars per share) | 10.50 | 11 | 11.76 | |
Canceled or forfeited (in dollars per share) | 0 | 0 | 12.72 | |
Outstanding (in dollars per share) | 10.98 | $ 10.97 | $ 10.98 | $ 11.37 |
Options vested and expected to vest (in dollars per share) | 10.98 | |||
Exercisable (in dollars per share) | $ 10.98 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Outstanding, Weighted Average Remaining Contractual Term (in years) | 3 years 22 days | 4 years 11 days | 4 years 5 months 5 days | 4 years 8 months 16 days |
Options, vested and expected to vest, Weighted Average Remaining Contractual Term (in years) | 3 years 22 days | |||
Exercisable, Weighted Average Remaining Contractual Term (in years) | 3 years 22 days | |||
Aggregate Intrinsic Value | $ 43,415 | $ 959,257 | $ 5,681,783 | |
Aggregate Intrinsic Value, Outstanding | 758,871 | |||
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 758,871 | |||
Exercisable, Intrinsic Value | $ 758,871 |
Share-based Compensation - Sto
Share-based Compensation - Stock Options Outstanding and Exercisable (Details) | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Price Range $7.21 - 7.21 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | shares | 6,875 |
Weighted-Average Remaining Contractual Life (Years) | 4 years 6 months 29 days |
Weighted-Average Exercise Price (in dollars per share) | $ 7.21 |
Number Exercisable (in shares) | shares | 6,875 |
Weighted-Average Exercise Price (in dollars per share) | $ 7.21 |
Exercise price, lower range limit (in dollars per share) | 7.21 |
Exercise price, upper range limit (in dollars per share) | $ 7.21 |
Price Range $7.44 - 7.44 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | shares | 331,139 |
Weighted-Average Remaining Contractual Life (Years) | 4 years 8 months 16 days |
Weighted-Average Exercise Price (in dollars per share) | $ 7.44 |
Number Exercisable (in shares) | shares | 331,139 |
Weighted-Average Exercise Price (in dollars per share) | $ 7.44 |
Exercise price, lower range limit (in dollars per share) | 7.44 |
Exercise price, upper range limit (in dollars per share) | $ 7.44 |
Price Range $7.56 - 9.90 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | shares | 195,150 |
Weighted-Average Remaining Contractual Life (Years) | 3 years 8 months 16 days |
Weighted-Average Exercise Price (in dollars per share) | $ 8.93 |
Number Exercisable (in shares) | shares | 195,150 |
Weighted-Average Exercise Price (in dollars per share) | $ 8.93 |
Exercise price, lower range limit (in dollars per share) | 7.56 |
Exercise price, upper range limit (in dollars per share) | $ 9.90 |
Price Range $10.50 - 15.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | shares | 178,314 |
Weighted-Average Remaining Contractual Life (Years) | 1 year 3 months 18 days |
Weighted-Average Exercise Price (in dollars per share) | $ 13.45 |
Number Exercisable (in shares) | shares | 178,314 |
Weighted-Average Exercise Price (in dollars per share) | $ 13.45 |
Exercise price, lower range limit (in dollars per share) | 10.50 |
Exercise price, upper range limit (in dollars per share) | $ 15 |
Price Range $17.90 - $18.00 (Member) | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | shares | 165,000 |
Weighted-Average Remaining Contractual Life (Years) | 9 months 29 days |
Weighted-Average Exercise Price (in dollars per share) | $ 17.99 |
Number Exercisable (in shares) | shares | 165,000 |
Weighted-Average Exercise Price (in dollars per share) | $ 17.99 |
Exercise price, lower range limit (in dollars per share) | 17.90 |
Exercise price, upper range limit (in dollars per share) | $ 18 |
Price Range $7.21 - 18.00 Member | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | shares | 876,478 |
Weighted-Average Remaining Contractual Life (Years) | 3 years 22 days |
Weighted-Average Exercise Price (in dollars per share) | $ 10.98 |
Number Exercisable (in shares) | shares | 876,478 |
Weighted-Average Exercise Price (in dollars per share) | $ 10.98 |
Exercise price, lower range limit (in dollars per share) | 7.21 |
Exercise price, upper range limit (in dollars per share) | $ 18 |
Share-based Compensation - Emp
Share-based Compensation - Employee Share Purchase Plan (Details) - Employee Stock [Member] - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Nov. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Duration of offering periods for ESPP (in months) | 24 months | |||
Percent of compensation allowed for purchase of options | 15.00% | |||
Payroll deduction accumulation period (in months) | 6 months | |||
Grant price, percent of fair value of common stock at date of grant | 85.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number Of Shares Authorized For Purchase Per Purchase Date | 200,000 | |||
Shares authorized under plan (in shares) | 1,430,000 | |||
Weighted-average grant date fair value | $ 3.84 | $ 5.81 | $ 6.11 | |
Fair Value Assumptions For ESPP | ||||
Expected option life (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 3 months 18 days | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Minimum | ||||
Fair Value Assumptions For ESPP | ||||
Volatility rate | 40.10% | 42.10% | 39.10% | |
Risk-free interest rate | 2.10% | 1.40% | 0.60% | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of common shares that may be purchased on any purchase date (in shares) | 875 | |||
Maximum number of common shares that may be purchased per a 24-month offering period (in shares) | 3,500 | |||
Maximum value of common stock that may be purchased in any one calendar year | $ 25,000 | |||
Fair Value Assumptions For ESPP | ||||
Volatility rate | 40.70% | 45.30% | 44.70% | |
Risk-free interest rate | 2.90% | 2.60% | 1.30% |
Share-based Compensation - Sha
Share-based Compensation - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | $ 13,177 | $ 11,412 | $ 6,634 | |
Unrecognized compensation expense | $ 13,700 | |||
Recognition period of share-based compensation expense (in years) | 2 years 7 days | |||
Cost of goods sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | $ 1,963 | 1,641 | 1,041 | |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | 2,453 | 1,855 | 1,361 | |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | 8,761 | 7,916 | 4,232 | |
Performance Based Restricted Stock Units (PRSUs) Member [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | $ 2,800 | $ 1,900 | $ 500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 291,750 | 298,050 | 170,000 | |
Recognition period of share-based compensation expense (in years) | 1 year 10 months 17 days | 2 years 22 days | 2 years 2 months 16 days | 0 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2019USD ($)shares | |
Defined Benefit Plan Disclosure [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 876,478 |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 7.70% |
United States | Retirement Plan, 401-K [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee maximum salary deferral contribution, percent | 100.00% |
Company contributions to retirement plan | $ | $ 0 |
China | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 12.00% |
China | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 20.00% |
Taiwan | |
Defined Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 6.00% |
Income Taxes - Narrative (Deta
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 31, 2017 | Jul. 01, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Tax Credit Carryforward [Line Items] | |||||||
Decrease in deferred tax assets | $ 6,600,000 | ||||||
Increase in prepaid tax asset | $ 6,600,000 | ||||||
Deferred tax asset, certain China patent rights and certain manufacturing related IP | $ 11,981,000 | $ 12,942,000 | $ 12,900,000 | ||||
Book value, certain China patent rights and certain manufacturing related IP | $ 0 | ||||||
Valuation allowance | 35,420,000 | 30,105,000 | |||||
Valuation allowance increase | 5,300,000 | 23,900,000 | |||||
Undistributed earnings of foreign subsidiaries | 140,600,000 | ||||||
Unrecognized tax benefits | 7,150,000 | 7,143,000 | $ 6,589,000 | $ 6,743,000 | |||
Unrecognized tax benefit, amount netted against deferred tax assets | 6,300,000 | ||||||
Unrecognized tax benefits that would reduce effective income tax rate | 4,200,000 | ||||||
Decrease in unrecognized tax benefits is reasonably possible | 200,000 | ||||||
Income tax interest and penalties accrued | 200,000 | 100,000 | |||||
Income tax interest and penalties expense | 30,000 | 0 | |||||
Long-term Income Tax Payable [Member] | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Unrecognized tax benefits | 900,000 | ||||||
Federal [Member] | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Net operating loss carryforwards | 24,300,000 | ||||||
Research and development tax credit carryforwards | 5,600,000 | ||||||
State [Member] | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Tax credit carryforward | 6,700,000 | ||||||
Tax credit carryforward, subject to expiration | 800,000 | ||||||
Tax credit carryforward, not subject to expiration | 5,900,000 | ||||||
Net operating loss carryforwards | 600,000 | ||||||
Corporate Joint Venture | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Net operating loss carryforwards | 77,500,000 | ||||||
State research and development credit carryforward | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Valuation allowance | 5,100,000 | 4,400,000 | |||||
Net operating loss, fixed asset and intangible asset | Corporate Joint Venture | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Valuation allowance | $ 30,300,000 | 25,700,000 | |||||
Accounting Standards Update 2016-16 | |||||||
Tax Credit Carryforward [Line Items] | |||||||
De-recognition of prepaid tax asset | $ 5,500,000 | ||||||
Restatement Adjustment | |||||||
Tax Credit Carryforward [Line Items] | |||||||
Deferred tax asset, certain China patent rights and certain manufacturing related IP | 12,900,000 | ||||||
Valuation allowance | $ 12,900,000 |
Income Taxes - Income Tax Sche
Income Taxes - Income Tax Schedules (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 31, 2017 | |
U.S. federal taxes: | ||||
Current | $ (57) | $ 55 | $ 1,043 | |
Deferred | (510) | (1,943) | (325) | |
Non-U.S. taxes: | ||||
Current | 1,765 | 2,898 | (4,615) | |
Deferred | 55 | (298) | 7,548 | |
State taxes, net of federal benefit: | ||||
Current | 3 | (4) | 1 | |
Total provision for income taxes | $ 1,256 | $ 708 | $ 3,652 | |
Effective income tax rate reconciliation | ||||
United States statutory rate | 21.00% | 28.10% | 34.00% | |
Stock-based compensation | 0.10% | (1.40%) | (0.40%) | |
Foreign taxes, net | (40.90%) | 39.50% | (0.70%) | |
Research and development credit | 11.70% | (17.10%) | (4.90%) | |
Non-deductible expenses | (2.70%) | 7.00% | 0.20% | |
U.S. Tax Act deferred tax re-measurement | 0.00% | (44.00%) | 0.00% | |
Other | 1.40% | 0.40% | 0.10% | |
Effective income tax rate | (9.40%) | 12.50% | 28.30% | |
Domestic and foreign components of income (loss) before taxes | ||||
U.S. operations | $ 4,100 | $ 4,219 | $ 4,016 | |
Non-U.S. operations | (17,482) | 1,437 | 8,896 | |
Income before income taxes | (13,382) | 5,656 | 12,912 | |
Deferred tax assets: | ||||
Accrued compensation | 1,428 | 2,121 | ||
Net operating loss carryforwards | 16,782 | 7,213 | ||
Depreciation | 10,036 | 10,968 | ||
Tax credits | 10,882 | 8,380 | ||
Capitalized intangible assets | 11,981 | 12,942 | $ 12,900 | |
Capitalized Costs | 0 | 2,292 | ||
Accruals and reserves | 1,000 | 1,197 | ||
Total deferred tax assets | 52,109 | 45,113 | ||
Valuation allowance | (35,420) | (30,105) | ||
Total deferred tax assets, net of valuation allowance | 16,689 | 15,008 | ||
Deferred tax liabilities: | ||||
Depreciation and amortization | (12,243) | (10,819) | ||
Accruals and reserves | (90) | (10) | ||
Total deferred tax liabilities | (12,333) | (10,829) | ||
Net deferred tax assets | 4,356 | 4,179 | ||
Current and non-current deferred tax assets and liabilities | ||||
Long-term deferred tax assets | 4,822 | 4,892 | ||
Long-term deferred tax liabilities | (466) | (713) | ||
Net deferred tax assets | 4,356 | 4,179 | ||
Unrecognized tax benefits rollforward | ||||
Balance at beginning of year | 7,143 | 6,589 | 6,743 | |
Additions based on tax positions related to the current year | 417 | 721 | 401 | |
Reductions based on tax positions related to prior years | (271) | (11) | (4) | |
Reductions due to lapse of applicable statute of limitations | (139) | (156) | (551) | |
Balance at end of year | $ 7,150 | $ 7,143 | $ 6,589 |
Segment and Geographic inform_3
Segment and Geographic information Segment Narrative (Details) | 12 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 1 |
Segment and Geographic inform_4
Segment and Geographic information Location and Net Book Value of Long-Lived Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
PropertyPlantEquipmentAndLandUseRights | $ 409,737 | $ 331,656 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
PropertyPlantEquipmentAndLandUseRights | 321,145 | 248,003 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
PropertyPlantEquipmentAndLandUseRights | 87,817 | 83,040 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
PropertyPlantEquipmentAndLandUseRights | $ 775 | $ 613 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - China - Subsidiaries [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, restricted statutory reserves | $ 209.5 | $ 184.3 |
Foreign subsidiaries, restricted statutory reserves percent of parent consolidated net assets | 64.40% | 62.80% |
Minimum | ||
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, minimum percent of after-tax profit required annually in statutory reserves | 10.00% | |
Maximum | ||
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, statutory reserves maximum cumulative amount as a percent of registered capital | 50.00% |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense, Net | $ 4,700 | $ 3,800 | $ 3,400 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2019 | 4,357 | ||
2020 | 1,741 | ||
2021 | 1,164 | ||
2022 | 894 | ||
2023 | 1,002 | ||
Thereafter | 149 | ||
Future minimum payments due | $ 9,307 |
Commitments and Contingencies
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Raw materials, wafers, and packaging and testing services purchase commitments [Member] | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 59.5 | $ 38 |
Property and equipment purchase commitments [Member] | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 33.8 | $ 58.3 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingencies and Indemnities (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Indemnification Agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Indemnification accrual | $ 0 | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Joint Venture (Details) - Corporate Joint Venture ¥ in Millions, $ in Millions | 30 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jan. 10, 2017USD ($) | Jan. 10, 2017CNY (¥) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Contractual Obligation | $ 78 | ¥ 540 | ||
Contractual Obligation, Payment | $ 69.9 | ¥ 480 | ||
Design Fees [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Contractual Obligation | 2.8 | |||
Construction and Procurement Fees | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Contractual Obligation | $ 75.2 |
Schedule I - Condensed Uncons_5
Schedule I - Condensed Unconsolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 121,893 | $ 131,535 | ||
Other current assets | 37,102 | 29,551 | ||
Total current assets | 295,298 | 285,212 | ||
Property, plant and equipment, net | 409,737 | 331,656 | ||
Other long-term assets | 10,617 | 28,698 | ||
Total assets | 739,394 | 667,049 | ||
Current liabilities: | ||||
Total liabilities | 296,105 | 240,887 | ||
Preferred shares, par value $0.002 per share: | ||||
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2019 and 2018 | 0 | 0 | ||
Common shares, par value $0.002 per share: | ||||
Authorized: 100,000 shares; issued and outstanding: 31,163 shares and 24,517 shares, respectively at June 30, 2019 and 30,400 shares and 23,860 shares, respectively at June 30, 2018 | 62 | 61 | ||
Treasury shares at cost; 6,646 shares at June 30, 2019 and 6,540 shares at June 30, 2018 | (66,240) | (64,790) | ||
Additional paid-in capital | 234,410 | 220,244 | ||
Accumulated other comprehensive income (loss) | (2,693) | 440 | ||
Retained earnings | 125,485 | 122,639 | ||
Total Alpha and Omega Semiconductor Limited shareholder's equity | 291,024 | 278,594 | ||
Noncontrolling interest | 152,265 | 147,568 | ||
Total equity | 443,289 | 426,162 | $ 298,549 | $ 242,039 |
Total liabilities and equity | 739,394 | 667,049 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 5,284 | 4,738 | ||
Accounts receivable - Intercompany | 0 | 3,937 | ||
Other current assets | 325 | 362 | ||
Total current assets | 5,609 | 9,037 | ||
Property, plant and equipment, net | 119 | 343 | ||
Other long-term assets | 242 | 339 | ||
Investment in subsidiaries | 459,696 | 417,185 | ||
Total assets | 465,666 | 426,904 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 863 | 742 | ||
Accounts payable - Intercompany | 21,514 | 0 | ||
Total liabilities | 22,377 | 742 | ||
Preferred shares, par value $0.002 per share: | ||||
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2019 and 2018 | 0 | 0 | ||
Common shares, par value $0.002 per share: | ||||
Authorized: 100,000 shares; issued and outstanding: 31,163 shares and 24,517 shares, respectively at June 30, 2019 and 30,400 shares and 23,860 shares, respectively at June 30, 2018 | 62 | 61 | ||
Treasury shares at cost; 6,646 shares at June 30, 2019 and 6,540 shares at June 30, 2018 | (66,240) | (64,790) | ||
Additional paid-in capital | 234,410 | 220,244 | ||
Accumulated other comprehensive income (loss) | (2,693) | 440 | ||
Retained earnings | 125,485 | 122,639 | ||
Total Alpha and Omega Semiconductor Limited shareholder's equity | 291,024 | 278,594 | ||
Noncontrolling interest | 152,265 | 147,568 | ||
Total equity | 443,289 | 426,162 | ||
Total liabilities and equity | $ 465,666 | $ 426,904 |
Schedule I - Condensed Uncons_6
Schedule I - Condensed Unconsolidated Balance Sheets (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 08, 2017 | Nov. 07, 2017 |
Noncontrolling interest | $ 152,265 | $ 147,568 | ||
Common Stock, Par or Stated Value Per Share | $ 0.002 | $ 0.002 | ||
Common shares, authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 31,163,000 | 30,400,000 | ||
Common stock, shares outstanding (in shares) | 24,517,000 | 23,860,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.002 | $ 0.002 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||
Treasury Stock, Shares | 6,646,000 | 6,540,000 | ||
Parent Company | ||||
Noncontrolling interest | $ 152,265 | $ 147,568 |
Schedule I - Condensed Uncons_7
Schedule I - Condensed Unconsolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Cost of revenue | $ 335,542 | $ 309,625 | $ 291,516 |
Gross profit | 115,378 | 111,928 | 91,821 |
Operating expenses: | |||
Selling, general and administrative | 75,967 | 66,164 | 48,842 |
Total operating expenses | 122,398 | 103,508 | 78,677 |
Operating loss | (7,020) | 8,420 | 13,144 |
Interest expense | (6,905) | (821) | (91) |
Net income (loss) including noncontrolling interest | (14,638) | 4,948 | 9,260 |
Net loss attributable to noncontrolling interest | (16,499) | (9,315) | (4,569) |
Net income attributable to Alpha and Omega Semiconductor Limited | 1,861 | 14,263 | 13,829 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenue | 4,292 | 4,096 | 3,772 |
Cost of revenue | 0 | 0 | 0 |
Gross profit | 4,292 | 4,096 | 3,772 |
Operating expenses: | |||
Selling, general and administrative | 4,599 | 4,479 | 3,938 |
Total operating expenses | 4,599 | 4,479 | 3,938 |
Operating loss | (307) | (383) | (166) |
Interest income | 3 | 7 | 20 |
Income (loss) on equity investment in subsidiaries | (14,334) | 5,324 | 9,406 |
Net income (loss) including noncontrolling interest | (14,638) | 4,948 | 9,260 |
Net loss attributable to noncontrolling interest | (16,499) | (9,315) | (4,569) |
Net income attributable to Alpha and Omega Semiconductor Limited | $ 1,861 | $ 14,263 | $ 13,829 |
Schedule I - Condensed Uncons_8
Schedule I - Condensed Unconsolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net income (loss) including noncontrolling interest | $ (14,638) | $ 4,948 | $ 9,260 |
Other comprehensive loss, net of tax, foreign currency translation adjustment | (5,937) | 244 | (1,012) |
Comprehensive income (loss) | (20,575) | 5,192 | 8,248 |
Noncontrolling interest | (19,303) | (9,205) | (5,118) |
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited | (1,272) | 14,397 | 13,366 |
Parent Company | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net income (loss) including noncontrolling interest | (14,638) | 4,948 | 9,260 |
Other comprehensive loss, net of tax, foreign currency translation adjustment | (5,937) | 244 | (1,012) |
Comprehensive income (loss) | (20,575) | 5,192 | 8,248 |
Noncontrolling interest | (19,303) | (9,205) | (5,118) |
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited | $ (1,272) | $ 14,397 | $ 13,366 |
Schedule I - Condensed Uncons_9
Schedule I - Condensed Unconsolidated Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | |||
Net income (loss) including noncontrolling interest | $ (14,638) | $ 4,948 | $ 9,260 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 31,900 | 29,200 | 27,200 |
Share-based compensation expense | 13,177 | 11,412 | 6,634 |
Changes in assets and liabilities: | |||
Net cash provided by operating activities | 31,421 | 3,480 | 42,648 |
Cash flows from investing activities | |||
Net cash used in investing activities | (112,435) | (194,127) | (55,585) |
Cash flows from financing activities | |||
Withholding tax on restricted stock units | (2,028) | (2,363) | (2,071) |
Proceeds from exercise of stock options and ESPP | 3,018 | 4,956 | 10,699 |
Payments for repurchase of common shares | (1,501) | (15,098) | 0 |
Net cash provided by financing activities | 75,099 | 206,953 | 40,809 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (7,429) | 15,795 | 27,967 |
Cash, cash equivalents and restricted cash at beginning of year | 131,724 | 115,929 | 87,962 |
Cash, cash equivalents and restricted cash at end of year | 124,295 | 131,724 | 115,929 |
Parent Company | |||
Cash flows from operating activities | |||
Net income (loss) including noncontrolling interest | (14,638) | 4,948 | 9,260 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 274 | 464 | 469 |
Share-based compensation expense | 432 | 503 | 428 |
Equity in net (income) loss of subsidiaries | 14,334 | (5,324) | (9,406) |
Other | 0 | 0 | 33 |
Changes in assets and liabilities: | |||
Accounts receivable - intercompany | 3,937 | 14,316 | (4,868) |
Other current assets | 134 | (199) | (134) |
Accounts payable and accrued liabilities | 121 | (182) | 256 |
Accounts payable - Intercompany | 21,514 | 0 | 0 |
Net cash provided by operating activities | 26,108 | 14,526 | (3,962) |
Cash flows from investing activities | |||
Purchases of property and equipment | (51) | 0 | 0 |
Investment in subsidiaries | 25,000 | 10,000 | 0 |
Net cash used in investing activities | (25,051) | (10,000) | 0 |
Cash flows from financing activities | |||
Withholding tax on restricted stock units | (2,028) | (2,363) | (2,071) |
Proceeds from exercise of stock options and ESPP | 3,018 | 4,956 | 10,699 |
Payments for repurchase of common shares | (1,501) | (15,098) | 0 |
Net cash provided by financing activities | (511) | (12,505) | 8,628 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 546 | (7,979) | 4,666 |
Cash, cash equivalents and restricted cash at beginning of year | 4,738 | 12,717 | 8,051 |
Cash, cash equivalents and restricted cash at end of year | $ 5,284 | $ 4,738 | $ 12,717 |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent Company (Details) ¥ in Millions, $ in Millions | 12 Months Ended | 30 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019CNY (¥) | Jan. 10, 2017USD ($) | Jan. 10, 2017CNY (¥) | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Restricted Net Assets Threshold for Condensed Parent Company Financial Statements, Percent Requirement | 25.00% | |||||
Corporate Joint Venture | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Contractual Obligation, Payment | $ 69.9 | ¥ 480 | ||||
Contractual Obligation Future Minimum Payments Due in Fiscal Year 2020 | $ 8.7 | $ 8.7 | ¥ 60 | |||
Contractual Obligation | $ 78 | ¥ 540 | ||||
Design Fees [Member] | Corporate Joint Venture | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Contractual Obligation | 2.8 | |||||
Construction and Procurement Fees | Corporate Joint Venture | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Contractual Obligation | $ 75.2 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | $ 30 | $ 30 | $ 30 |
Additions | 0 | 0 | 0 |
Reductions | 0 | 0 | 0 |
Balance | 30 | 30 | 30 |
Allowance for Price Adjustments [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | 18,902 | 19,599 | 16,700 |
Additions | 115,842 | 124,694 | 113,970 |
Reductions | (110,669) | (125,391) | (111,071) |
Balance | 24,075 | 18,902 | 19,599 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | 30,105 | 6,178 | 2,894 |
Additions | 5,315 | 23,927 | 3,284 |
Reductions | 0 | 0 | 0 |
Balance | $ 35,420 | $ 30,105 | $ 6,178 |