Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34717 | |
Entity Registrant Name | Alpha and Omega Semiconductor Limited | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 77-0553536 | |
Entity Address, Address Line One | Clarendon House | |
Entity Address, Address Line Two | 2 Church Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Postal Zip Code | HM 11 | |
Entity Address, Country | BM | |
City Area Code | 408 | |
Local Phone Number | 830-9742 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Shares | |
Trading Symbol | AOSL | |
Security Exchange Name | NASDAQ | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 25,077,932 | |
Entity Central Index Key | 0001387467 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 110,223 | $ 121,893 |
Restricted cash | 2,325 | 364 |
Accounts receivable, net | 17,470 | 24,296 |
Inventories | 127,395 | 111,643 |
Other current assets | 34,518 | 37,102 |
Total current assets | 291,931 | 295,298 |
Property, plant and equipment, net | 412,318 | 409,737 |
Operating lease right-of-use assets, net | 32,739 | |
Intangible assets, net | 16,798 | 16,882 |
Deferred income tax assets | 4,755 | 4,822 |
Restricted cash - long-term | 1,973 | 2,038 |
Other long-term assets | 6,781 | 10,617 |
Total assets | 767,295 | 739,394 |
Current liabilities: | ||
Accounts payable | 87,973 | 94,384 |
Accrued liabilities | 50,572 | 44,075 |
Income taxes payable | 419 | 1,541 |
Short-term debt | 32,812 | 26,609 |
Finance lease liabilities | 15,219 | 11,355 |
Operating lease liabilities | 3,839 | |
Total current liabilities | 190,834 | 177,964 |
Long-term debt | 74,205 | 59,380 |
Income taxes payable - long-term | 859 | 993 |
Deferred income tax liabilities | 485 | 466 |
Finance lease liabilities - long-term | 30,579 | 43,381 |
Operating lease liabilities - long-term | 30,248 | |
Other long-term liabilities | 10,356 | 13,921 |
Total liabilities | 337,566 | 296,105 |
Commitments and contingencies (Note 10) | ||
Preferred shares, par value $0.002 per share: | ||
Authorized: 10,000 shares; issued and outstanding: none at March 31, 2020 and June 30, 2019 | 0 | 0 |
Common shares, par value $0.002 per share: | ||
Authorized: 100,000 shares; issued and outstanding: 31,715 shares and 25,076 shares, respectively at March 31, 2020 and 31,163 shares and 24,517 shares, respectively at June 30, 2019 | 63 | 62 |
Treasury shares at cost, 6,639 shares at March 31, 2020 and 6,646 shares at June 30, 2019 | (66,184) | (66,240) |
Additional paid-in capital | 242,470 | 234,410 |
Accumulated other comprehensive loss | (5,408) | (2,693) |
Retained earnings | 118,938 | 125,485 |
Total Alpha and Omega Semiconductor Limited shareholder's equity | 289,879 | 291,024 |
Noncontrolling interest | 139,850 | 152,265 |
Total equity | 429,729 | 443,289 |
Total liabilities and equity | $ 767,295 | $ 739,394 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Jun. 30, 2019 |
Common shares, par value (in dollars per share) | $ 0.002 | $ 0.002 |
Common shares, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 31,715,000 | 31,163,000 |
Common stock, shares outstanding (in shares) | 25,076,000 | 24,517,000 |
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) | 6,639,000 | 6,646,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 106,852 | $ 109,067 | $ 342,514 | $ 339,064 |
Cost of goods sold | 84,393 | 83,438 | 268,717 | 251,322 |
Gross profit | 22,459 | 25,629 | 73,797 | 87,742 |
Operating expenses | ||||
Research and development | 13,569 | 11,417 | 38,084 | 35,401 |
Selling, general and administrative | 16,909 | 17,947 | 47,723 | 58,403 |
Investment impairment | 600 | 0 | 600 | 0 |
Total operating expenses | 31,078 | 29,364 | 86,407 | 93,804 |
Operating loss | (8,619) | (3,735) | (12,610) | (6,062) |
Interest expense and other income (loss), net | (2,282) | (1,595) | (3,744) | (4,455) |
Loss before income taxes | (10,901) | (5,330) | (16,354) | (10,517) |
Income tax expense (benefit) | (1,015) | 625 | (37) | 1,886 |
Net loss including noncontrolling interest | (9,886) | (5,955) | (16,317) | (12,403) |
Net loss attributable to noncontrolling interest | (3,391) | (4,400) | (9,826) | (11,719) |
Net loss attributable to Alpha and Omega Semiconductor Limited | $ (6,495) | $ (1,555) | $ (6,491) | $ (684) |
Net loss per common share attributable to Alpha and Omega Semiconductor Limited | ||||
Basic (in dollars per share) | $ (0.26) | $ (0.06) | $ (0.26) | $ (0.03) |
Diluted (in dollars per share) | $ (0.26) | $ (0.06) | $ (0.26) | $ (0.03) |
Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net loss per share | ||||
Basic (in shares) | 24,894 | 24,084 | 24,711 | 23,938 |
Diluted (in shares) | 24,894 | 24,084 | 24,711 | 23,938 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net loss including noncontrolling interest | $ (9,886) | $ (5,955) | $ (16,317) | $ (12,403) |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustment | (2,208) | 4,495 | (5,304) | (1,800) |
Comprehensive loss | (12,094) | (1,460) | (21,621) | (14,203) |
Noncontrolling interest | (4,430) | (2,184) | (12,415) | (12,516) |
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited | $ (7,664) | $ 724 | $ (9,206) | $ (1,687) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total AOS Shareholders' Equity | Common Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | $ 426,162 | |||||||
Beginning balance at Jun. 30, 2018 | $ 278,594 | $ 61 | $ (64,790) | $ 220,244 | $ 440 | $ 122,639 | ||
Beginning balance, noncontrolling interest at Jun. 30, 2018 | $ 147,568 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | 445,485 | |||||||
Exercise of common stock options and release of RSUs | 110 | 110 | 1 | 109 | ||||
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units | 51 | (51) | ||||||
Withholding tax on restricted stock units | (1,946) | (1,946) | (1,946) | |||||
Issuance of shares under ESPP | 1,168 | 1,168 | 1,168 | |||||
Repurchase of common shares under shares repurchase program | (1,501) | (1,501) | (1,501) | |||||
Share-based compensation | 10,659 | 10,659 | 10,659 | |||||
Net loss | (684) | (684) | (684) | |||||
Net loss attributable to noncontrolling interest | (11,719) | (11,719) | ||||||
Net loss including noncontrolling interest | (12,403) | |||||||
Impact on retained earnings related to ASC 606 adoption | Accounting Standards Update 2016-16 | 1,036 | 1,036 | 1,036 | |||||
Cumulative translation adjustment | (1,003) | (1,003) | ||||||
Cumulative translation adjustment, attributable to noncontrolling interest | (797) | |||||||
Cumulative translation adjustment, including portion attributable to noncontrolling interest | (1,800) | |||||||
Contributions from noncontrolling interest | 24,000 | 24,000 | ||||||
Ending balance at Mar. 31, 2019 | 286,433 | 62 | (66,240) | 230,234 | (563) | 122,940 | ||
Ending balance, noncontrolling interest at Mar. 31, 2019 | 159,052 | |||||||
Ending balance, including portion attributable to noncontrolling interest at Mar. 31, 2019 | 445,485 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | 444,528 | |||||||
Beginning balance at Dec. 31, 2018 | 283,292 | 61 | (66,283) | 227,818 | (2,842) | 124,538 | ||
Beginning balance, noncontrolling interest at Dec. 31, 2018 | 161,236 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | 445,485 | |||||||
Exercise of common stock options and release of RSUs | 1 | (1) | ||||||
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units | 43 | (43) | ||||||
Withholding tax on restricted stock units | (1,743) | (1,743) | (1,743) | |||||
Share-based compensation | 4,160 | 4,160 | 4,160 | |||||
Net loss | (1,555) | (1,555) | (1,555) | |||||
Net loss attributable to noncontrolling interest | (4,400) | (4,400) | ||||||
Net loss including noncontrolling interest | (5,955) | |||||||
Cumulative translation adjustment | 2,279 | 2,279 | ||||||
Cumulative translation adjustment, attributable to noncontrolling interest | 2,216 | |||||||
Cumulative translation adjustment, including portion attributable to noncontrolling interest | 4,495 | |||||||
Ending balance at Mar. 31, 2019 | 286,433 | 62 | (66,240) | 230,234 | (563) | 122,940 | ||
Ending balance, noncontrolling interest at Mar. 31, 2019 | 159,052 | |||||||
Ending balance, including portion attributable to noncontrolling interest at Mar. 31, 2019 | 445,485 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | 445,485 | |||||||
Beginning balance, including portion attributable to noncontrolling interest | 443,289 | |||||||
Beginning balance at Jun. 30, 2019 | 291,024 | 291,024 | 62 | (66,240) | 234,410 | (2,693) | 125,485 | |
Beginning balance, noncontrolling interest at Jun. 30, 2019 | 152,265 | 152,265 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | 429,729 | |||||||
Exercise of common stock options and release of RSUs | 26 | 26 | 26 | |||||
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units | 56 | (56) | ||||||
Withholding tax on restricted stock units | (1,398) | (1,398) | (1,398) | |||||
Issuance of shares under ESPP | 1,701 | 1,701 | 1 | 1,700 | ||||
Share-based compensation | 7,732 | 7,732 | 7,732 | |||||
Net loss | (6,491) | (6,491) | (6,491) | |||||
Net loss attributable to noncontrolling interest | (9,826) | (9,826) | ||||||
Net loss including noncontrolling interest | (16,317) | |||||||
Cumulative translation adjustment | (2,715) | (2,715) | ||||||
Cumulative translation adjustment, attributable to noncontrolling interest | (2,589) | |||||||
Cumulative translation adjustment, including portion attributable to noncontrolling interest | (5,304) | |||||||
Ending balance at Mar. 31, 2020 | 289,879 | 289,879 | 63 | (66,184) | 242,470 | (5,408) | 118,938 | |
Ending balance, noncontrolling interest at Mar. 31, 2020 | 139,850 | 139,850 | ||||||
Ending balance, including portion attributable to noncontrolling interest at Mar. 31, 2020 | 429,729 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | 440,150 | |||||||
Beginning balance at Dec. 31, 2019 | 295,870 | 63 | (66,227) | 240,797 | (4,239) | 125,476 | ||
Beginning balance, noncontrolling interest at Dec. 31, 2019 | 144,280 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | 429,729 | |||||||
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units | 43 | (43) | ||||||
Withholding tax on restricted stock units | (1,203) | (1,203) | (1,203) | |||||
Share-based compensation | 2,876 | 2,876 | 2,876 | |||||
Net loss | (6,495) | (6,495) | (6,495) | |||||
Net loss attributable to noncontrolling interest | (3,391) | (3,391) | ||||||
Net loss including noncontrolling interest | (9,886) | |||||||
Cumulative translation adjustment | (1,169) | (1,169) | ||||||
Cumulative translation adjustment, attributable to noncontrolling interest | (1,039) | |||||||
Cumulative translation adjustment, including portion attributable to noncontrolling interest | (2,208) | |||||||
Ending balance at Mar. 31, 2020 | 289,879 | $ 289,879 | $ 63 | $ (66,184) | $ 242,470 | $ (5,408) | $ 118,938 | |
Ending balance, noncontrolling interest at Mar. 31, 2020 | 139,850 | $ 139,850 | ||||||
Ending balance, including portion attributable to noncontrolling interest at Mar. 31, 2020 | 429,729 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | $ 429,729 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net loss including noncontrolling interest | $ (16,317) | $ (12,403) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 33,538 | 24,159 |
Share-based compensation expense | 7,732 | 10,659 |
Deferred income taxes, net | 85 | 252 |
Gain on disposal of property and equipment | (206) | (8) |
Impairment of privately-held investment | 600 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 6,826 | 5,122 |
Inventories | (14,660) | (17,748) |
Other current and long-term assets | 2,715 | (2,399) |
Accounts payable | (3,366) | 6,039 |
Income taxes payable | (1,256) | (245) |
Accrued and other liabilities | 6,332 | 9,728 |
Net cash provided by operating activities | 22,023 | 23,156 |
Cash flows from investing activities | ||
Purchases of property and equipment excluding JV Company | (33,417) | (31,402) |
Purchases of property and equipment in JV Company | (15,787) | (58,509) |
Purchase of intangible assets | 0 | (405) |
Proceeds from sale of property and equipment | 295 | 21 |
Government grant related to equipment in JV Company | 1,254 | 0 |
Net cash used in investing activities | (47,655) | (90,295) |
Cash flows from financing activities | ||
Proceeds from investment by noncontrolling interest | 0 | 24,000 |
Withholding tax on restricted stock units | (1,398) | (1,946) |
Proceeds from exercise of stock options and ESPP | 1,727 | 1,278 |
Payment for repurchases of common shares | 0 | (1,501) |
Proceeds from borrowings | 49,146 | 67,479 |
Repayments of borrowings | (25,768) | (9,393) |
Principal payments on finance lease | (7,213) | (2,440) |
Net cash provided by financing activities | 16,494 | 77,477 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (636) | (573) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (9,774) | 9,765 |
Cash, cash equivalents and restricted cash at beginning of period | 124,295 | 131,724 |
Cash, cash equivalents and restricted cash at end of period | 114,521 | 141,489 |
Supplemental disclosures of non-cash investing and financing information: | ||
Property and equipment purchased but not yet paid (fiscal year 2019 amount is presented as revised, see Note 1) | $ 15,911 | $ 32,738 |
The Company and Significant Acc
The Company and Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2020 | |
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 accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 . All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the nine months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020 or any other interim period. The condensed consolidated balance sheet at June 30, 2019 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 . During the nine months ended March 31, 2020, the Company corrected the corresponding amount for the nine months ended March 31, 2019 of property and equipment purchased but not yet paid in the supplemental disclosures of non-cash investing and financing information by decreasing the amount by $18.1 million from $50.8 million to $32.7 million . This disclosure change had no effect on the consolidated statements of operations and cash flows for the nine months ended March 31, 2019 . In addition, the Company recorded the out-of-period adjustments for its headquarters' lease renewal. See Note 6, Leases, for details. The impact of the adjustments on the previously issued consolidated financial statements was insignificant. Certain Significant Risks and Uncertainties Related to Outbreak of Coronavirus Disease 2019 (“COVID-19”) The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, any of the following areas could have a negative effect on the Company in terms of its future financial position, results of operations or cash flows: the general state of the U.S., China and world economies; the highly cyclical nature of the industries the Company serves; the loss of any of its larger customers; restrictions on the Company’s ability to sell to foreign customers due to trade laws, regulations and requirements; disruptions of the supply chain of components needed for our products; ability to obtain additional financing; inability to meet certain debt covenants; fundamental changes in the technology underlying the Company’s products; the hiring, training and retention of key employees; successful and timely completion of product design efforts; and new product design introductions by competitors. On March 11, 2020, the World Health Organization characterized the outbreak of the coronavirus disease known as COVID-19 as a global pandemic and recommended containment and mitigation measures. On March 13, 2020, the United States declared a national emergency concerning the outbreak, and several states and municipalities have declared public health emergencies. Along with these declarations, there have been extraordinary and wide-ranging actions taken by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19 in regions across the United States and the world where the Company has operations, including quarantines, and “stay-at-home” orders, closure of all business not deemed "essential", practice of social distancing when engaging in essential activities and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations. In response to these steps, the Company took proactive, aggressive actions from the earliest signs of the COVID-19 outbreak in China to adopt policies and protocols at its locations around the world, including social distancing guidelines, working from home, limiting the number of employees attending meetings, reducing the number of people in our sites at any one time, and suspending employee travel. As the COVID-19 pandemic reached the U.S. and federal and state authorities imposed “stay-at-home” orders, the Company has taken similar proactive and aggressive actions in California, Oregon and Texas where the Company has business activities in order to protect the health and safety of its employees. The Company has considered the economic implications of the COVID-19 pandemic in making critical and significant accounting estimates. COVID-19 has had a negative impact on business activity across the globe. As a result of COVID-19, the Company has experienced a decline in the demand for its products, as customers reduce orders in response to a slowdown in consumer spending and shifting market trends. The Company expects declining demand in categories such as smartphones, power supply and industrial as business activity decelerates across the globe. These declines might be partially offset by increasing demand in the markets for notebooks, PCs and gaming devices as more consumers are staying and working from home. The extent to which the COVID-19 pandemic may impact the Company's business will depend on future developments which are uncertain and cannot be predicted with confidence, such as the duration of the outbreak, travel restrictions governmental mandates issued to mitigate the spread of the disease, business closures, economic disruptions, and the effectiveness of actions taken to contain and treat the virus. Accordingly, the Covid-19 pandemic may have a negative impact on the Company's sales and results of operations, the size and duration of which is difficult to predict. The Company will continue to actively monitor the situation and may take further actions altering its business operations that the Company determines are in the best interests of its employees, customers, partners, suppliers, and stakeholders, or as required by federal, state, or local authorities. Leases On July 1, 2019, the Company adopted Topic 842, Leases, using the modified retrospective method. Results for reporting periods beginning after July 1, 2019 were presented under Topic 842, while prior period amounts were not adjusted and continue to be reported on a historical basis as permitted under Topic 840. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, current operating lease liabilities and long-term operating lease liabilities on the Company's condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and long-term finance leases liabilities on the condensed consolidated balance sheets. The Company elected the practical expedient permitted under the transition guidance, which allowed the Company to carryforward its historical lease classifications, make an assessment on whether a contract was or contains a lease, and determine initial direct costs for any leases that existed prior to July 1, 2019. The Company elected to combine its lease and non-lease components as a single lease component for all asset classes. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses an estimate of its incremental borrowing rate based on the information available at the lease commencement date. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating lease expense is generally recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the operating lease ROU asset and lease liability calculation. The Company does not record leases on the condensed consolidated balance sheet with a term of one year or less. See Note 6 for further details. Revenue recognition 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 to certain distributors. Packaging and testing services revenue is recognized upon shipment of serviced products to the customer. Joint Venture In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China (the "Chongqing Funds") to form a joint venture, (the "JV Company"), for a new state-of-the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing (the "Joint Venture"). As of March 31, 2020 , the Company owns 51% , and the Chongqing Funds own 49% of the equity interest in the JV Company. The Joint Venture is accounted for under the provisions of the consolidation guidance since the Company has a controlling financial interest. The JV Company has continued ramping up its production of assembly and testing during the nine months ended March 31, 2020 . In July 2019, we commenced limited mass production at the 12-inch wafer fabrication facility, and continued ramping up production during the nine months ended March 31, 2020 . Use of Estimates The preparation of the condensed 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 condensed 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, leases, share-based compensation, recoverability of and useful lives for property, plant and equipment and intangible assets, as well as economic implications of the COVID-19 pandemic. Share-based Compensation Expense 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 market 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-Carlo 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, net of estimated forfeitures, over the requisite service period of the award, which generally equals the vesting period. Restricted Cash As a condition of the loan agreement, the Company is required to keep a compensating balance at the issuing bank (see Note 5). In addition, the Company maintains restricted cash in connection with cash balances temporarily restricted for regular business operations including the possibility of a dispute with a vendor. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s consolidated balance sheets. As of March 31, 2020 and June 30, 2019, the amount of restricted cash was $4.3 million and $2.4 million , respectively. Fair Value of Financial Instruments The fair value of cash equivalents is based on observable market prices which 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. Impairment of Privately-held Investment During fiscal year 2017, the Company purchased shares of common stock in a privately-held company at a total investment cost of $0.6 million . The Company made the investment because it viewed the privately-held company as having strategic technology and a business that would complement the Company's technological capabilities and help create an opportunity for the Company to sell its products. The Company accounted for the investment on a cost basis. During the quarter ended March 31, 2020, the Company recorded an impairment charge of $0.6 million in connection with this investment as the Company concluded the impairment to be other-than-temporary. Government Grants The Company occasionally receives government grants that provide financial assistance for certain eligible expenditures in China. These grants include tax credits, credit for property, plant and equipment in a particular geographical location, employment credits, research and development credits, as well as business expansion credits. Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to it, and that the grant will be received. The Company records such grants either as a reduction of the related expense or a reduction of the cost of the related asset, or as other income. During the three and nine months ended March 31, 2020, the Company reduced interest expense by $0.7 million and $4.1 million , property, plant and equipment by $0 and $1.3 million , and operating expenses by $1.8 million and $2.0 million , respectively. During the three and nine months ended March 31, 2019, the Company reduced interest expense by $0.1 million each. Long-lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes indicate that the carrying amount of such assets may not be recoverable. Due to the COVID-19 pandemic, the Company assessed the changes in circumstances that occurred during the March 2020 quarter. These factors included continued operating losses, a decrease in the Company's share price in February and March of 2020, which reduced its market capitalization, expectation of lower business growth for the coming quarters, increased and prolonged economic and regulatory uncertainty in the global economies, and the expectation of higher supply chain costs and increased competition. Therefore, the Company performed a recoverability test by comparing the sum of the estimated undiscounted future cash flows of its long-lived assets to their carrying amount as of March 31 2020. Some of the more significant assumptions used in the estimated future cash flows include net sales, cost of goods sold, operating expenses, working capital, capital expenditures, income tax rates, and long-term growth rates that appropriately reflects the risks inherent in the future cash flow stream. The Company selected the assumptions used in the financial forecasts by referencing to historical data, supplemented by current and anticipated market conditions, estimated product growth rates and management's plans. These estimated future cash flows were consistent with those the Company uses in its internal planning. The result of the recoverability test indicated that the sum of the expected future cash flows (undiscounted and without interest charges) was greater than the carrying amount of the long-lived assets. Therefore, the Company concluded that the carrying amount of the long-lived assets is recoverable. 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. Total comprehensive income (loss) is presented in the condensed consolidated statements of comprehensive income (loss). Recent Accounting Pronouncements Recently Issued Accounting Standards not yet adopted In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. 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 December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12") by removing certain exceptions to the general principles. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. We are currently evaluating the impacts of adoption of the new guidance to our consolidated financial statements. In August 2018, the FASB issued ASU 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". 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 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 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. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This guidance requires a dual approach for lessee accounting under which a lessee accounts for leases as finance leases or operating leases. Both finance and operating leases 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. The Company adopted this standard as of July 1, 2019, using the modified retrospective transition method and recorded a cumulative-effect balance sheet adjustment. As a result of adopting ASU 2016-02 on July 1, 2019, the Company recognized operating lease right-of-use assets and corresponding operating lease liabilities of approximately $21 million each from existing leases on the Company's condensed consolidated balance sheet. See Note 6 for further details. 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 had no material impact on the Company's consolidated financial statements. |
Net Income Per Common Share Att
Net Income Per Common Share Attributable to Alpha and Omega Semiconductor Limited | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Loss Per Common Share Attributable to Alpha and Omega Semiconductor Limited The following table presents the calculation of basic and diluted net loss per share attributable to common shareholders: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands, except per share data) Numerator: Net loss attributable to Alpha and Omega Semiconductor Limited $ (6,495 ) $ (1,555 ) $ (6,491 ) $ (684 ) Denominator: Basic: Weighted average number of common shares used to compute basic net loss per share 24,894 24,084 24,711 23,938 Diluted: Weighted average number of common shares used to compute basic net loss per share 24,894 24,084 24,711 23,938 Effect of potentially dilutive securities: Stock options, RSUs and ESPP shares — — — — Weighted average number of common shares used to compute diluted net loss per share 24,894 24,084 24,711 23,938 Net loss per share attributable to Alpha and Omega Semiconductor Limited: Basic $ (0.26 ) $ (0.06 ) $ (0.26 ) $ (0.03 ) Diluted $ (0.26 ) $ (0.06 ) $ (0.26 ) $ (0.03 ) The following potential dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands) (in thousands) Employee stock options and RSUs 2,038 2,225 2,043 2,220 ESPP 627 891 782 988 Total potential dilutive securities 2,665 3,116 2,825 3,208 |
Concentration of Credit Risk an
Concentration of Credit Risk and Significant Customers | 9 Months Ended |
Mar. 31, 2020 | |
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 and review 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 requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable 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 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, when available. In the past, the Company shipped its product indirectly to Huawei and its affiliates (collectively, “Huawei”) through distributors. Typically, the Company sold its products to distributors who then sold to original design manufacturers (“ODMs”) that incorporated our products into end applications that were then shipped to Huawei. While distributor point of sale reports summarize distributor sales to ODMs, the Company must make certain assumptions and estimates in order to determine the amount of revenues attributed to indirect shipment to Huawei. During the fiscal year ended June 30, 2019, the estimated revenues attributed to indirect shipments to Huawei were approximately 2% of total revenues. During the period from May 2019 to December 2019, estimated revenues earned by the Company from shipments indirectly made to Huawei were in the range of $11 million to $13 million . The Company has not shipped any products to Huawei after December 31, 2019. See Note 10. Summarized below are individual customers whose revenue or accounts receivable balances were more than 10% of the respective total consolidated amounts: Three Months Ended March 31, Nine Months Ended March 31, Percentage of revenue 2020 2019 2020 2019 Customer A 27.5 % 26.8 % 29.2 % 28.4 % Customer B 36.4 % 36.2 % 36.2 % 37.3 % March 31, June 30, Percentage of accounts receivable Customer A * 12.1 % Customer B 22.3 % 19.7 % Customer C 22.3 % 18.1 % Customer D * 13.3 % * Less than 10% |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts receivable, net: March 31, June 30, (in thousands) Accounts receivable $ 50,014 $ 48,401 Less: Allowance for price adjustments (32,514 ) (24,075 ) Less: Allowance for doubtful accounts (30 ) (30 ) Accounts receivable, net $ 17,470 $ 24,296 Inventories: March 31, June 30, (in thousands) Raw materials $ 56,750 $ 59,076 Work in-process 55,606 38,214 Finished goods 15,039 14,353 $ 127,395 $ 111,643 Other current assets: March 31, June 30, (in thousands) VAT receivable $ 27,165 $ 30,769 Other prepaid expenses 1,958 2,745 Prepaid insurance 900 939 Prepaid maintenance 593 481 Prepayment to supplier 769 583 Prepaid income tax 1,140 267 Customs deposit 162 114 Lease financing cost — 825 Interest receivable 1,339 379 Payroll tax receivable 492 — $ 34,518 $ 37,102 Property, plant and equipment, net: March 31, June 30, (in thousands) Land $ 4,877 $ 4,877 Building 58,640 36,205 Manufacturing machinery and facility equipment 440,823 303,750 Equipment and tooling 25,211 20,739 Computer equipment and software 38,651 34,048 Office furniture and equipment 3,368 3,243 Leasehold improvements 68,015 53,597 Land use rights 8,480 8,760 648,065 465,219 Less: accumulated depreciation (280,269 ) (252,982 ) 367,796 212,237 Equipment and construction in progress 44,522 197,500 Property, plant and equipment, net $ 412,318 $ 409,737 Intangible assets, net: March 31, June 30, (in thousands) Patents and technology rights $ 18,037 $ 18,037 Trade name 268 268 Customer relationships 1,150 1,150 19,455 19,455 Less: accumulated amortization (2,926 ) (2,842 ) 16,529 16,613 Goodwill 269 269 Intangible assets, net $ 16,798 $ 16,882 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. As of March 31, 2020 , 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 and is ready for its intended use in production. Estimated future minimum amortization expense of intangible assets is as follows (in thousands): Year ending June 30, 2020 (Remaining) $ 28 2021 2,548 2022 3,360 2023 3,286 2024 3,249 Thereafter 4,058 $ 16,529 Other long-term assets: March 31, June 30, (in thousands) Prepayments for property and equipment $ 3,747 $ 4,846 Investment in a privately held company 100 700 Lease financing costs — 1,758 Customs deposit 886 980 Other long-term deposits 839 889 Office leases deposits 1,039 1,031 Other 170 413 $ 6,781 $ 10,617 Accrued liabilities: March 31, June 30, (in thousands) Accrued compensation and benefits $ 16,772 $ 16,385 Warranty accrual 672 623 Stock rotation accrual 3,307 1,921 Accrued professional fees 5,261 1,721 Accrued inventory 487 857 Accrued facilities related expenses 1,995 4,233 Accrued financing lease costs 705 728 Accrued property, plant and equipment 9,745 11,527 ESPP payable 1,913 585 Customer deposit 2,556 351 Other accrued expenses 7,159 5,144 $ 50,572 $ 44,075 The activities in the warranty accrual, included in accrued liabilities, are as follows: Nine Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 623 $ 535 Additions 852 189 Utilization (803 ) (69 ) Ending balance $ 672 $ 655 The activities in the stock rotation accrual, included in accrued liabilities, are as follows: Nine Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 1,921 $ 1,750 Additions 7,413 3,589 Utilization (6,027 ) (3,616 ) Ending balance $ 3,307 $ 1,723 Other long-term liabilities: March 31, June 30, (in thousands) Customer deposits $ 8,000 * $ 10,000 * Computer software liabilities 2,356 3,701 Other — 220 Other long-term liabilities $ 10,356 $ 13,921 * Customer deposits are from Customer A and Customer B for securing future product shipments from the Company. The Company reclassified $2.0 million of the customer deposit to short term accrued liabilities during the nine months ended March 31, 2020 since the repayment of this amount is due within a year. |
Bank Borrowing Bank Borrowing
Bank Borrowing Bank Borrowing | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Bank Borrowing | Bank Borrowings Short-term borrowings In October 2019, the Company's subsidiary in China entered into a line of credit facility with Bank of Communications Limited in China. This line of credit matures on February 14, 2021 and is based on the China Base Rate multiplied by 1.05 , or 4.99% on October 31, 2019. The purpose of the credit facility was to provide short-term borrowings. The Company could borrow up to approximately Chinese Renminbi (RMB) 60.0 million or $8.5 million based on the currency exchange rate between the RMB and the U.S. Dollar on October 31, 2019. As of March 31, 2020 , there was no outstanding balance under the loan. On September 23, 2019, the JV Company entered into a short term revolving loan agreement with China Everbright bank in China. The JV Company can borrow up to RMB 50.0 million , or $7.1 million based on the currency exchange rate between RMB and U.S. Dollar on September 23, 2019, at varying interest rates, with either RMB or USD. Interest payments with the entire principal are due no later than 90 days from each borrowing date. The loan expired in April 2019. In January and February 2020, the JV Company borrowed $1.6 million and $5.5 million , respectively, under this loan. Interest payments with the entire principal were due on April 7, 2020 and May 3, 2020. As of March 31, 2020 , the total outstanding balance under the loan was $7.1 million . 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 RMB 20 million , or $3.0 million based on the currency exchange rate between RMB and U.S. Dollar on March 31, 2019, at a fixed interest rate of 5.44% per annum. Interest payments are due monthly with the entire principal due on March 21, 2020. The loan expired in April 2019. As of March 31, 2020 , there was no outstanding balance under the loan. On November 29 and December 4, 2018, the JV Company entered into two, one-year loan agreements with China Merchant Bank and Chongqing LiangJiang New District China Merchants Group Limited Company in China to provide loans for RMB 80 million and RMB 20 million , respectively, or $14.5 million in total based on the currency exchange rate between RMB and U.S. Dollar on December 31, 2018, at varying interest rates. On January 20, 2020, the JV Company renewed the loan agreements with the same terms. Interest payments are due monthly and quarterly with the entire principal due not later than January 21, 2021. As of March 31, 2020 , the outstanding balance under the loan was $14.1 million . 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 expired on September 30, 2019. The purpose of the credit facility was to provide short-term borrowings. The Company could 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 October 2019, this line of credit was renewed with the same terms and a maturity date of September 30, 2020. As of March 31, 2020 , there was no outstanding balance under the line of credit. Accounts Receivable Factoring Agreement On August 9, 2019, one of the Company's wholly-owned subsidiaries ("the "Borrower") entered into a factoring agreement with the Hongkong and Shanghai Banking Corporation Limited (“HSBC”), whereby the Borrower assigns certain of its accounts receivable with recourse. This factoring agreement allows the Borrower to borrow up to 70% of the net amount of its eligible accounts receivable of the Borrower with a maximum amount of $30.0 million . The interest rate is based on one month LIBOR plus 1.75% per annum. This agreement, with certain financial covenants required, has no expiration date. The Company is the guarantor for this agreement. The Company is accounting for this transaction as a secured borrowing under the Transfers and Servicing of Financial Assets guidance. In addition, any cash held in the restricted bank account controlled by HSBC has a legal right of offset against the borrowing. The Borrower was in compliance with these covenants as of March 31, 2020 . During the three months ended March 31, 2020, the Company borrowed $8.0 million and repaid this amount in full. As of March 31, 2020 , there was no outstanding balance and the Company had unused credit of approximately $30.0 million . 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 The Export-Import Bank of China (the “Lenders”). Pursuant to the Agreements, the Lenders agreed to provide an aggregate of 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 agreed to transfer title of its assembly and testing equipment to the Lenders, and the Lenders leased 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 were 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 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 March 31, 2020 , the outstanding balance under the Agreement was 325.0 million RMB (equivalent of $45.8 million based on the currency exchange rate as of March 31, 2020 ), which was recorded under short-term and long-term finance lease liabilities. See future minimum lease payment table for finance lease liabilities in Note 6. Long-term debt In December 2019, the JV Company entered into a loan agreement with China Development Bank in the amount of $24.0 million . The obligation under the loan agreement is secured by certain assets of the JV Company. Beginning December 18, 2020, the JV Company will make consecutive semi-annual payments of principal until December 8, 2024. The interest is accrued based on the London Interbank Offered Rate ("LIBOR") rate plus 2.8% . The interest is required to be paid on March 21 and September 21 each year. As of March 31, 2020 , the outstanding balance of the loan was $24.0 million . 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 RMB 200 million (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 RMB 190 million and RMB 10 million in March 2019 and December 2019, respectively. The loan withdraw window expired on February 28, 2020. The interest is accrued based on the China Base Rate multiplied by 1.1 , or 5.39% . The loan requires quarterly interest payments. The principal payments are required to be paid every 6 months over the term of loan commencing in October 2019. This loan is secured by the buildings and certain equipment owned by the JV Company. As a condition of the loan arrangement, RMB 14 million (approximately $2.0 million ) of cash is held as restricted cash by the JV Company as a compensating balance at the bank until the principal is paid. In October 2019, the Company repaid RMB 3.0 million . As of March 31, 2020 , the outstanding balance of the loan was RMB 197 million (equivalent of $27.8 million based on the currency exchange rate as of March 31, 2020 ). On May 1, 2018, Jireh Semiconductor Incorporated ("Jireh"), a wholly-owned subsidiary of the Company, entered into a loan agreement with a financial institution (the "Bank") that provided a term loan in the 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 made consecutive monthly payments of principal and interest to the Bank. The outstanding principal accrues 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 March 31, 2020 . As of March 31, 2020 , the outstanding balance of the term loan was $16.2 million . On August 15, 2017, Jireh entered into a credit agreement with the Bank that provided a term loan in an amount up to $30.0 million for the purpose of purchasing certain equipment for the Company's 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 the loan in the amount of $13.2 million and $16.7 million , respectively. Beginning in October 2018, Jireh was required to pay to the Bank on each payment date, the outstanding principal amount of the loan in monthly installments. The loan accrues interest based on an adjusted LIBOR as defined in the credit agreement, plus a 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 March 31, 2020 . As of March 31, 2020 , the outstanding balance of the term loan was $18.6 million . Maturities of short-term debt and long-term debt were as follows (in thousands): Year ending June 30, 2020 (Remaining) $ 9,648 2021 28,641 2022 20,022 2023 28,511 2024 12,082 Thereafter 8,881 Total principal of debts 107,785 Less: debt issuance costs (768 ) Total principal of debt, less debt issuance costs $ 107,017 Short-term Debt Long-term Debt Principal amount $ 33,099 $ 74,686 Less: debt issuance costs (287 ) (481 ) Total debt, less debt issuance costs $ 32,812 $ 74,205 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Under Topic 842, the Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liabilities and operating lease liabilities - long-term on the Company's consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the consolidated balance sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the RMB 400.0 million of lease financing of the JV Company with YinHai Leasing Company and The Export-Import Bank of China. See Note 5 - Bank Borrowings for details. The Company does not record leases on the condensed consolidated balance sheet with a term of one year or less. The components of the Company’s operating and finance lease expenses are as follows for the period presented (in thousands): Nine Months Ended March 31, 2020 Operating Leases: Fixed rent expense $ 4,480 Variable rent expense 623 Finance Lease: Amortization of equipment 2,304 Interest 2,142 Short-term leases Short-term lease expenses 224 Total lease expenses $ 9,773 Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): March 31, 2020 Operating Leases : ROU assets associated with operating leases $ 32,739 Finance Lease: Property, plant and equipment, gross $ 104,109 Accumulated depreciation (85,967 ) Property, plant and equipment, net $ 18,142 Weighted average remaining lease term (in years) Operating leases 9.99 Finance lease 2.97 Weighted average discount rate Operating leases 4.48 % Finance lease 5.46 % Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands): Nine Months Ended March 31, 2020 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,828 Operating cash flows from finance lease $ 2,142 Financing cash flows from finance lease $ 7,213 Non-cash increase in right-of-use operating lease assets * $ 16,009 * This relates to the Company's headquarters' office lease renewal in September 2019. See below for details. Future minimum lease payments are as follows as of March 31, 2020 (in thousands): Operating Leases Finance Leases The remainder of 2020 $ 1,339 $ 4,444 2021 5,090 17,229 2022 4,624 16,386 2023 4,315 11,877 2024 3,934 — 2025 3,514 — Thereafter 20,663 — Total minimum lease payments 43,479 49,936 Less amount representing interest (9,392 ) (4,138 ) Total lease liabilities $ 34,087 $ 45,798 Prior to the adoption of the new lease standard, future minimum lease payments as of June 30, 2019 were as follows (in thousands): Year ending June 30, Operating Leases Finance Leases 2020 $ 4,357 $ 14,219 2021 1,741 17,799 2022 1,164 16,928 2023 894 12,269 2024 1,002 — Thereafter 149 — Total minimum lease payments 9,307 61,215 Less amount representing interest — (6,479 ) Total lease liabilities $ 9,307 $ 54,736 In September 2019, the Company modified its headquarters' office lease located in Sunnyvale, California for an additional 10 -year term extension from its original scheduled expiration date in April 2020. During the three months ended March 31, 2020, the Company discovered that the operating lease right-of-use assets and operating lease liabilities relating to this lease were each understated by approximately $16.0 million , which was considered immaterial to previously issued quarterly reports on Form 10-Q as of September 30, 2019 and December 31, 2019. The impact of the correction on the previously issued consolidated statements of operations and cash flows was insignificant. Non-cash disclosure of the increase in right-of-use operating lease assets for the both three months ended September 2019 and six months ended December 2019 was increased from $0 to $16.0 million . The impact of the correction on the respective balance sheets was as follows (in thousands): September 30, 2019 December 31, 2019 Amounts as reported Adjustments Amounts as corrected Amounts as reported Adjustments Amounts as corrected Operating lease right-of-use assets $ 19,362 $ 16,009 $ 35,371 $ 18,667 $ 15,709 $ 34,376 Total assets $ 749,912 $ 16,009 $ 765,921 $ 763,140 $ 15,709 $ 778,849 Operating lease liabilities - Short-term $ 3,767 $ 620 $ 4,387 $ 3,282 $ 858 $ 4,140 Total current liabilities $ 189,451 $ 620 $ 190,071 $ 184,151 $ 858 $ 185,009 Operating lease liabilities - Long-term $ 15,815 $ 16,054 $ 31,869 $ 15,559 $ 15,778 $ 31,337 Total liabilities $ 312,359 $ 16,054 $ 328,413 $ 322,990 $ 15,778 $ 338,768 |
Leases | Leases Under Topic 842, the Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liabilities and operating lease liabilities - long-term on the Company's consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the consolidated balance sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the RMB 400.0 million of lease financing of the JV Company with YinHai Leasing Company and The Export-Import Bank of China. See Note 5 - Bank Borrowings for details. The Company does not record leases on the condensed consolidated balance sheet with a term of one year or less. The components of the Company’s operating and finance lease expenses are as follows for the period presented (in thousands): Nine Months Ended March 31, 2020 Operating Leases: Fixed rent expense $ 4,480 Variable rent expense 623 Finance Lease: Amortization of equipment 2,304 Interest 2,142 Short-term leases Short-term lease expenses 224 Total lease expenses $ 9,773 Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): March 31, 2020 Operating Leases : ROU assets associated with operating leases $ 32,739 Finance Lease: Property, plant and equipment, gross $ 104,109 Accumulated depreciation (85,967 ) Property, plant and equipment, net $ 18,142 Weighted average remaining lease term (in years) Operating leases 9.99 Finance lease 2.97 Weighted average discount rate Operating leases 4.48 % Finance lease 5.46 % Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands): Nine Months Ended March 31, 2020 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,828 Operating cash flows from finance lease $ 2,142 Financing cash flows from finance lease $ 7,213 Non-cash increase in right-of-use operating lease assets * $ 16,009 * This relates to the Company's headquarters' office lease renewal in September 2019. See below for details. Future minimum lease payments are as follows as of March 31, 2020 (in thousands): Operating Leases Finance Leases The remainder of 2020 $ 1,339 $ 4,444 2021 5,090 17,229 2022 4,624 16,386 2023 4,315 11,877 2024 3,934 — 2025 3,514 — Thereafter 20,663 — Total minimum lease payments 43,479 49,936 Less amount representing interest (9,392 ) (4,138 ) Total lease liabilities $ 34,087 $ 45,798 Prior to the adoption of the new lease standard, future minimum lease payments as of June 30, 2019 were as follows (in thousands): Year ending June 30, Operating Leases Finance Leases 2020 $ 4,357 $ 14,219 2021 1,741 17,799 2022 1,164 16,928 2023 894 12,269 2024 1,002 — Thereafter 149 — Total minimum lease payments 9,307 61,215 Less amount representing interest — (6,479 ) Total lease liabilities $ 9,307 $ 54,736 In September 2019, the Company modified its headquarters' office lease located in Sunnyvale, California for an additional 10 -year term extension from its original scheduled expiration date in April 2020. During the three months ended March 31, 2020, the Company discovered that the operating lease right-of-use assets and operating lease liabilities relating to this lease were each understated by approximately $16.0 million , which was considered immaterial to previously issued quarterly reports on Form 10-Q as of September 30, 2019 and December 31, 2019. The impact of the correction on the previously issued consolidated statements of operations and cash flows was insignificant. Non-cash disclosure of the increase in right-of-use operating lease assets for the both three months ended September 2019 and six months ended December 2019 was increased from $0 to $16.0 million . The impact of the correction on the respective balance sheets was as follows (in thousands): September 30, 2019 December 31, 2019 Amounts as reported Adjustments Amounts as corrected Amounts as reported Adjustments Amounts as corrected Operating lease right-of-use assets $ 19,362 $ 16,009 $ 35,371 $ 18,667 $ 15,709 $ 34,376 Total assets $ 749,912 $ 16,009 $ 765,921 $ 763,140 $ 15,709 $ 778,849 Operating lease liabilities - Short-term $ 3,767 $ 620 $ 4,387 $ 3,282 $ 858 $ 4,140 Total current liabilities $ 189,451 $ 620 $ 190,071 $ 184,151 $ 858 $ 185,009 Operating lease liabilities - Long-term $ 15,815 $ 16,054 $ 31,869 $ 15,559 $ 15,778 $ 31,337 Total liabilities $ 312,359 $ 16,054 $ 328,413 $ 322,990 $ 15,778 $ 338,768 |
Shareholders' Equity and Share-
Shareholders' Equity and Share-based Compensation | 9 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Shareholders' Equity and Share-based Compensation | Shareholders' Equity and Share-based Compensation Share Repurchase In September 2017, the Board of Directors approved a new 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 the nine months ended March 31, 2020 , the Company did not repurchase any shares from the open market. Since the inception of the program, the Company repurchased an aggregate of 6,784,648 shares from the open market for a total cost of $67.3 million , at an average price of $9.92 per share, excluding fees and related expenses. No repurchased shares have been retired. Of the 6,784,648 repurchased shares, 145,428 shares with a weighted average repurchase price of $10.32 per share, were reissued at an average price of $5.30 per share pursuant to option exercises and vested restricted share units. As of March 31, 2020 , approximately $13.4 million remained available under the Repurchase Program. Time-based Restricted Stock Units ("TRSU") The following table summarizes the Company's TRSU activities for the nine months ended March 31, 2020 : Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Nonvested at June 30, 2019 906,341 $ 14.09 1.62 $ 8,465,225 Granted 483,947 $ 8.41 Vested (416,415 ) $ 13.60 Forfeited (21,125 ) $ 13.61 Nonvested at March 31, 2020 952,748 $ 11.42 1.85 $ 6,107,115 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 each 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 $0.1 million and $0.4 million of expenses for these MSUs during the three and nine months ended March 31, 2020 , respectively, and approximately $0.1 million and $0.5 million during the three and nine months ended March 31, 2019 , respectively. Performance-based Restricted Stock Units ("PRSUs") The Company granted performance-based RSUs (“PRSUs”) to certain personnel. The number of shares to be earned under the PRSUs is determined based on the level of attainment of predetermined financial goals. The PRSUs vest in four equal annual installments from the first anniversary date after the grant date if certain predetermined financial goals were met. The Company recorded approximately $0.4 million and $1.1 million of expense for these PRSUs during the three and nine months ended March 31, 2020 , respectively, and approximately $0.8 million and $2.2 million during the three and nine months ended March 31, 2019 , respectively. The following table summarizes the Company's PRSUs activities for the nine months ended March 31, 2020 : Number of Performance-based Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Nonvested at June 30, 2019 596,724 $ 13.95 1.88 $ 5,573,402 Granted 155,000 $ 7.36 Vested (110,659 ) $ 16.68 Forfeited (80,354 ) $ 11.69 Nonvested at March 31, 2020 560,711 $ 11.92 1.89 $ 3,594,158 Stock Options The Company did not grant any stock options during the three and nine months ended March 31, 2020 and 2019. The number of options expected to vest is the result of applying the pre-vesting forfeiture rate assumption to total outstanding options. The following table summarizes the Company's stock option activities for the nine months ended March 31, 2020 : Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Aggregate Shares Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2019 876,478 $ 10.98 3.06 $ 758,871 Exercised (2,500 ) $ 10.50 $ 4,726 Canceled or forfeited (55,000 ) $ 15.00 Outstanding at March 31, 2020 818,978 $ 10.71 2.48 $ — Options vested and expected to vest 818,978 $ 10.71 2.48 $ — Exercisable at March 31, 2020 818,978 $ 10.71 2.48 $ — Employee Share Purchase Plan ("ESPP") The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows: Nine Months Ended March 31, 2020 Volatility rate 46.4% Risk-free interest rate 1.6% Expected term 1.3 years Dividend yield 0% Share-based Compensation Expense T he total share-based compensation expense recognized in the condensed consolidated statements of operations for the periods presented was as follows: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands) (in thousands) Cost of goods sold $ 357 $ 494 $ 1,197 $ 1,532 Research and development 991 555 1,987 1,929 Selling, general and administrative 1,528 2,063 4,548 7,198 $ 2,876 $ 3,112 $ 7,732 $ 10,659 As of March 31, 2020 , total unrecognized compensation cost under the Company's equity plans was $10.6 million , which is expected to be recognized over a weighted-average period of 2.2 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized income tax benefit of approximately $1.0 million and income tax expense of $0.6 million for the three months ended March 31, 2020 and 2019 , respectively. The income tax benefit of $1.0 million for the three months ended March 31, 2020 included a $1.3 million discrete tax benefit, $1.1 million of which related to re-measuring the tax benefit of net operating losses that can be carried back to prior years following the passage of the "U.S. Coronavirus Aid, Relief and Economic Security Act” (“CARES Act”), and $0.2 million of which primarily related to a prior year reserve release. The income tax expenses of $0.6 million for the three months ended March 31, 2019 included a $0.2 million discrete tax benefit principally related to a prior year reserve release. Excluding the discrete income tax items, the effective tax rate for the three months ended March 31, 2020 and 2019 was (2.3)% and (14.8)% , respectively. The changes in the tax expense between the periods resulted primarily from the discrete tax benefit resulting from the tax law changes resulting from the CARES Act as well as changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year. The Company recognized income tax benefit of approximately $0.04 million and income tax expense of $1.9 million for the nine months ended March 31, 2020 and 2019, respectively. The income tax benefit of $0.04 million for the nine months ended March 31, 2020 included a $1.3 million discrete tax benefit, $1.1 million of which related to remeasuring the tax benefit of net operating losses that can be carried back to prior years following the passage of the U.S. CARES Act, and $0.2 million of which related to a prior year reserve release. The income tax expense of $1.9 million for the nine months ended March 31, 2019 included a $0.1 million discrete tax benefit principally related to a prior year reserve release. Excluding the discrete income tax items, the effective tax rate for the nine months ended March 31, 2020 and 2019 was (7.4)% and (19.2)% , respectively. The changes in the tax expense between the periods resulted primarily from the discrete tax benefit resulting from the tax law changes resulting from the CARES Act as well as changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year. The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2020 remain open to examination by U.S. federal and state tax authorities. The tax years 2012 to 2020 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. As of March 31, 2020 , the gross amount of unrecognized tax benefits was approximately $7.2 million , of which $4.2 million , if recognized, would reduce the effective income tax rate in future periods. 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. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months. 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. In November 2019 the en banc rehearing petition was denied, and Altera has asked the Supreme Court for a judicial review. 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 March 31, 2020. The Company will continue to monitor ongoing developments and potential impacts to its financial statements. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Mar. 31, 2020 | |
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. 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: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands) (in thousands) Hong Kong $ 90,050 $ 87,143 $ 280,396 $ 265,914 China 13,607 18,834 46,690 63,991 South Korea 1,861 260 10,130 568 United States 830 1,684 2,829 5,624 Other countries 504 1,146 2,469 2,967 $ 106,852 $ 109,067 $ 342,514 $ 339,064 The following is a summary of revenue by product type: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands) (in thousands) Power discrete $ 89,932 $ 89,936 $ 291,964 $ 275,485 Power IC 15,699 17,631 46,078 56,430 Packaging and testing services 1,221 1,500 4,472 7,149 $ 106,852 $ 109,067 $ 342,514 $ 339,064 Long-lived assets, net consisting of property, plant and equipment and land use rights, by geographical area are as follows: March 31, June 30, (in thousands) China $ 312,345 $ 321,145 United States 99,206 87,817 Other Countries 767 775 $ 412,318 $ 409,737 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of March 31, 2020 and June 30, 2019 , the Company had approximately $57.2 million and $59.5 million , respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts and packaging and testing services, and approximately $23.1 million and $33.8 million , respectively, of capital commitments for the purchase of property and equipment and EPC construction. Other Commitments See Note 5 and Note 6 of the Notes to the Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for descriptions of commitments including bank borrowings and leases. Contingencies and Indemnities The Company has in the past, and may from time to time in the future, become 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 of such claims and suffer adverse effects on its operations. As previously disclosed in the Company's Form 10-Q for the quarter ended December 31, 2019, the U.S. Department of Justice ("DOJ") commenced an investigation into the Company's compliance with export control regulations relating to its business transactions with Huawei and its affiliates (“Huawei”), which were added to the “Entity List” maintained by the Department of Commerce (“DOC”) on May 16, 2019. The Company is cooperating fully with federal authorities in the investigation, including responding to requests for documents and information from DOJ in connection with the investigation. The Company has maintained an export control compliance program and has been committed to comply fully with all applicable laws and regulations. In connection with this investigation, DOC requested the Company to suspend shipments of its products to Huawei, and the Company complied with such request, and the Company has not shipped any product to Huawei after December 31, 2019. The Company is currently working with DOC to resolve this issue. Given the case is in relatively early stages and still ongoing, the Company cannot estimate the reasonably possible loss or range of loss that may occur. Also, the Company is unable to predict the duration, scope, result or related costs of the investigation, although the Company expects to incur additional professional fees as a result of this matter. In addition, the Company is unable to predict, if any, further action that may be taken by the government in connection with the investigation, or what, if any, penalties, sanctions or remedial actions may be sought. On March 19, 2020, Darryl Gray, a stockholder of the Company (the “Plaintiff”), filed a putative class action complaint in the United States District Court for the Southern District of New York (the “Gray Action”), alleging that the Company and its management members made material misstatements or omissions regarding the Company’s business and operations, including its export control practices relating to business transactions with Huawei and its affiliate. The Gray Action asserts claims under Section 10(b) of the Exchange Act against the Company, its Chief Executive Officer and Chief Financial Officer (collectively, the Defendants”), as well as claims under Section 20(a) of the Exchange Act against the Chief Executive Officer and Chief Financial Officer. Among other remedies, the actions seek to recover compensatory damages and other damages and attorney’s fees and costs. On March 20, 2020, the court issued a summons to the Defendants. On March 25, 2020, the court scheduled a conference for July 1, 2020 to consider any motions for appointment of lead plaintiff and lead counsel. The Company believes the claims in the Gray Action are without merit and intends to vigorously defend this litigation. Given the case is in its early stages and still on going, the Company cannot estimate the reasonably possible loss or range of loss that may occur. The Company is a party to a variety of agreements that it has contracted with various third 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 may be 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 March 31, 2020 and June 30, 2019 . 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 15, 2020, the JV Company entered into a one-year loan agreement with China Everbright Bank in China to provide a loan of a maximum of RMB 100 million (approximately $14.3 million based on the currency exchange rate between RMB and U.S. Dollar on April 15, 2020). In April 2020, the JV Company borrowed RMB 20 million , or $2.8 million based on the currency exchange rate between RMB and U.S. Dollar on April 16, 2020, at a fixed interest rate of 5.1375% per annum. Interest payments are due on the 20th of each month, and the entire principal is due on April 16, 2021. On April 26, 2020, the JV Company entered into a loan agreement with China Development Bank, Agricultural Bank of China, China Merchants Bank and Chongqing Rural Commercial Bank (collectively, "the Banks") in the aggregate principal amount of RMB 250 million , (approximately $35.7 million based on the currency exchange rate between RMB and U.S. Dollar on April 26, 2020). The obligation under the loan agreement is secured by certain assets of the JV Company. Beginning December 18, 2020, the JV Company is required to make consecutive semi-annual payments of principal until December 8, 2024. Interest payment is due on March 20, June 20, September 20 and December 20 of each year based on China one-year loan prime rate ("LPR") plus 1.3% |
The Company and Significant A_2
The Company and Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 . All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the nine months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020 or any other interim period. The condensed consolidated balance sheet at June 30, 2019 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 . |
Leases | Leases On July 1, 2019, the Company adopted Topic 842, Leases, using the modified retrospective method. Results for reporting periods beginning after July 1, 2019 were presented under Topic 842, while prior period amounts were not adjusted and continue to be reported on a historical basis as permitted under Topic 840. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, current operating lease liabilities and long-term operating lease liabilities on the Company's condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and long-term finance leases liabilities on the condensed consolidated balance sheets. The Company elected the practical expedient permitted under the transition guidance, which allowed the Company to carryforward its historical lease classifications, make an assessment on whether a contract was or contains a lease, and determine initial direct costs for any leases that existed prior to July 1, 2019. The Company elected to combine its lease and non-lease components as a single lease component for all asset classes. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses an estimate of its incremental borrowing rate based on the information available at the lease commencement date. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating lease expense is generally recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the operating lease ROU asset and lease liability calculation. The Company does not record leases on the condensed consolidated balance sheet with a term of one year or less. See Note 6 for further details. |
Use of Estimates | Use of Estimates |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of cash equivalents is based on observable market prices which 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. Impairment of Privately-held Investment During fiscal year 2017, the Company purchased shares of common stock in a privately-held company at a total investment cost of $0.6 million . The Company made the investment because it viewed the privately-held company as having strategic technology and a business that would complement the Company's technological capabilities and help create an opportunity for the Company to sell its products. The Company accounted for the investment on a cost basis. During the quarter ended March 31, 2020, the Company recorded an impairment charge of $0.6 million in connection with this investment as the Company concluded the impairment to be other-than-temporary. |
Government Grants | Government Grants The Company occasionally receives government grants that provide financial assistance for certain eligible expenditures in China. These grants include tax credits, credit for property, plant and equipment in a particular geographical location, employment credits, research and development credits, as well as business expansion credits. Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to it, and that the grant will be received. The Company records such grants either as a reduction of the related expense or a reduction of the cost of the related asset, or as other income. |
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. Total comprehensive income (loss) is presented in the condensed consolidated statements of comprehensive income (loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards not yet adopted In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. 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 December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12") by removing certain exceptions to the general principles. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. We are currently evaluating the impacts of adoption of the new guidance to our consolidated financial statements. In August 2018, the FASB issued ASU 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". 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 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 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. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This guidance requires a dual approach for lessee accounting under which a lessee accounts for leases as finance leases or operating leases. Both finance and operating leases 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. The Company adopted this standard as of July 1, 2019, using the modified retrospective transition method and recorded a cumulative-effect balance sheet adjustment. As a result of adopting ASU 2016-02 on July 1, 2019, the Company recognized operating lease right-of-use assets and corresponding operating lease liabilities of approximately $21 million each from existing leases on the Company's condensed consolidated balance sheet. See Note 6 for further details. 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 had no material impact on the Company's consolidated financial statements. |
Concentration of Credit Risk | The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review 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 requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable 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 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, when available. |
Net Income Per Common Share A_2
Net Income Per Common Share Attributable to Alpha and Omega Semiconductor Limited - (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share attributable to common shareholders: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands, except per share data) Numerator: Net loss attributable to Alpha and Omega Semiconductor Limited $ (6,495 ) $ (1,555 ) $ (6,491 ) $ (684 ) Denominator: Basic: Weighted average number of common shares used to compute basic net loss per share 24,894 24,084 24,711 23,938 Diluted: Weighted average number of common shares used to compute basic net loss per share 24,894 24,084 24,711 23,938 Effect of potentially dilutive securities: Stock options, RSUs and ESPP shares — — — — Weighted average number of common shares used to compute diluted net loss per share 24,894 24,084 24,711 23,938 Net loss per share attributable to Alpha and Omega Semiconductor Limited: Basic $ (0.26 ) $ (0.06 ) $ (0.26 ) $ (0.03 ) Diluted $ (0.26 ) $ (0.06 ) $ (0.26 ) $ (0.03 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands) (in thousands) Employee stock options and RSUs 2,038 2,225 2,043 2,220 ESPP 627 891 782 988 Total potential dilutive securities 2,665 3,116 2,825 3,208 |
Concentration of Credit Risk _2
Concentration of Credit Risk and Significant Customers (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Summarized below are individual customers whose revenue or accounts receivable balances were more than 10% of the respective total consolidated amounts: Three Months Ended March 31, Nine Months Ended March 31, Percentage of revenue 2020 2019 2020 2019 Customer A 27.5 % 26.8 % 29.2 % 28.4 % Customer B 36.4 % 36.2 % 36.2 % 37.3 % March 31, June 30, Percentage of accounts receivable Customer A * 12.1 % Customer B 22.3 % 19.7 % Customer C 22.3 % 18.1 % Customer D * 13.3 % |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable, net: March 31, June 30, (in thousands) Accounts receivable $ 50,014 $ 48,401 Less: Allowance for price adjustments (32,514 ) (24,075 ) Less: Allowance for doubtful accounts (30 ) (30 ) Accounts receivable, net $ 17,470 $ 24,296 |
Schedule of Inventory, Current | Inventories: March 31, June 30, (in thousands) Raw materials $ 56,750 $ 59,076 Work in-process 55,606 38,214 Finished goods 15,039 14,353 $ 127,395 $ 111,643 |
Other Current Assets | Other current assets: March 31, June 30, (in thousands) VAT receivable $ 27,165 $ 30,769 Other prepaid expenses 1,958 2,745 Prepaid insurance 900 939 Prepaid maintenance 593 481 Prepayment to supplier 769 583 Prepaid income tax 1,140 267 Customs deposit 162 114 Lease financing cost — 825 Interest receivable 1,339 379 Payroll tax receivable 492 — $ 34,518 $ 37,102 |
Property, Plant and Equipment | operty, plant and equipment, net: March 31, June 30, (in thousands) Land $ 4,877 $ 4,877 Building 58,640 36,205 Manufacturing machinery and facility equipment 440,823 303,750 Equipment and tooling 25,211 20,739 Computer equipment and software 38,651 34,048 Office furniture and equipment 3,368 3,243 Leasehold improvements 68,015 53,597 Land use rights 8,480 8,760 648,065 465,219 Less: accumulated depreciation (280,269 ) (252,982 ) 367,796 212,237 Equipment and construction in progress 44,522 197,500 Property, plant and equipment, net $ 412,318 $ 409,737 |
Intangible Assets Disclosure | Intangible assets, net: March 31, June 30, (in thousands) Patents and technology rights $ 18,037 $ 18,037 Trade name 268 268 Customer relationships 1,150 1,150 19,455 19,455 Less: accumulated amortization (2,926 ) (2,842 ) 16,529 16,613 Goodwill 269 269 Intangible assets, net $ 16,798 $ 16,882 |
Schedule Future Amortization Expense of Intangible Assets | Estimated future minimum amortization expense of intangible assets is as follows (in thousands): Year ending June 30, 2020 (Remaining) $ 28 2021 2,548 2022 3,360 2023 3,286 2024 3,249 Thereafter 4,058 $ 16,529 |
Schedule of Other Assets, Noncurrent | Other long-term assets: March 31, June 30, (in thousands) Prepayments for property and equipment $ 3,747 $ 4,846 Investment in a privately held company 100 700 Lease financing costs — 1,758 Customs deposit 886 980 Other long-term deposits 839 889 Office leases deposits 1,039 1,031 Other 170 413 $ 6,781 $ 10,617 |
Schedule of Accrued Liabilities | Accrued liabilities: March 31, June 30, (in thousands) Accrued compensation and benefits $ 16,772 $ 16,385 Warranty accrual 672 623 Stock rotation accrual 3,307 1,921 Accrued professional fees 5,261 1,721 Accrued inventory 487 857 Accrued facilities related expenses 1,995 4,233 Accrued financing lease costs 705 728 Accrued property, plant and equipment 9,745 11,527 ESPP payable 1,913 585 Customer deposit 2,556 351 Other accrued expenses 7,159 5,144 $ 50,572 $ 44,075 |
Schedule of Product Warranty Liability | The activities in the warranty accrual, included in accrued liabilities, are as follows: Nine Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 623 $ 535 Additions 852 189 Utilization (803 ) (69 ) Ending balance $ 672 $ 655 |
Stock Rotation Accrual | The activities in the stock rotation accrual, included in accrued liabilities, are as follows: Nine Months Ended March 31, 2020 2019 (in thousands) Beginning balance $ 1,921 $ 1,750 Additions 7,413 3,589 Utilization (6,027 ) (3,616 ) Ending balance $ 3,307 $ 1,723 |
Other Long-Term Liabilities | Other long-term liabilities: March 31, June 30, (in thousands) Customer deposits $ 8,000 * $ 10,000 * Computer software liabilities 2,356 3,701 Other — 220 Other long-term liabilities $ 10,356 $ 13,921 * Customer deposits are from Customer A and Customer B for securing future product shipments from the Company. The Company reclassified $2.0 million of the customer deposit to short term accrued liabilities during the nine months ended March 31, 2020 since the repayment of this amount is due within a year. |
Bank Borrowing (Tables)
Bank Borrowing (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities | Maturities of short-term debt and long-term debt were as follows (in thousands): Year ending June 30, 2020 (Remaining) $ 9,648 2021 28,641 2022 20,022 2023 28,511 2024 12,082 Thereafter 8,881 Total principal of debts 107,785 Less: debt issuance costs (768 ) Total principal of debt, less debt issuance costs $ 107,017 Short-term Debt Long-term Debt Principal amount $ 33,099 $ 74,686 Less: debt issuance costs (287 ) (481 ) Total debt, less debt issuance costs $ 32,812 $ 74,205 |
Leases - (Tables)
Leases - (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Operating and Finance Lease Costs | The components of the Company’s operating and finance lease expenses are as follows for the period presented (in thousands): Nine Months Ended March 31, 2020 Operating Leases: Fixed rent expense $ 4,480 Variable rent expense 623 Finance Lease: Amortization of equipment 2,304 Interest 2,142 Short-term leases Short-term lease expenses 224 Total lease expenses $ 9,773 Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands): Nine Months Ended March 31, 2020 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,828 Operating cash flows from finance lease $ 2,142 Financing cash flows from finance lease $ 7,213 Non-cash increase in right-of-use operating lease assets * $ 16,009 |
Schedule of Lease Assets and Liabilities | Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): March 31, 2020 Operating Leases : ROU assets associated with operating leases $ 32,739 Finance Lease: Property, plant and equipment, gross $ 104,109 Accumulated depreciation (85,967 ) Property, plant and equipment, net $ 18,142 Weighted average remaining lease term (in years) Operating leases 9.99 Finance lease 2.97 Weighted average discount rate Operating leases 4.48 % Finance lease 5.46 % |
Schedule of Operating Lease Future Minimum Lease Payments (Topic 842) | Future minimum lease payments are as follows as of March 31, 2020 (in thousands): Operating Leases Finance Leases The remainder of 2020 $ 1,339 $ 4,444 2021 5,090 17,229 2022 4,624 16,386 2023 4,315 11,877 2024 3,934 — 2025 3,514 — Thereafter 20,663 — Total minimum lease payments 43,479 49,936 Less amount representing interest (9,392 ) (4,138 ) Total lease liabilities $ 34,087 $ 45,798 |
Schedule of Finance Lease Future Minimum Lease Payments (Topic 842) | Future minimum lease payments are as follows as of March 31, 2020 (in thousands): Operating Leases Finance Leases The remainder of 2020 $ 1,339 $ 4,444 2021 5,090 17,229 2022 4,624 16,386 2023 4,315 11,877 2024 3,934 — 2025 3,514 — Thereafter 20,663 — Total minimum lease payments 43,479 49,936 Less amount representing interest (9,392 ) (4,138 ) Total lease liabilities $ 34,087 $ 45,798 |
Schedule of Future Minimum Rental Payments for Operating Leases (Topic 840) | Prior to the adoption of the new lease standard, future minimum lease payments as of June 30, 2019 were as follows (in thousands): Year ending June 30, Operating Leases Finance Leases 2020 $ 4,357 $ 14,219 2021 1,741 17,799 2022 1,164 16,928 2023 894 12,269 2024 1,002 — Thereafter 149 — Total minimum lease payments 9,307 61,215 Less amount representing interest — (6,479 ) Total lease liabilities $ 9,307 $ 54,736 |
Schedule of Future Minimum Lease Payments for Capital Leases (Topic 840) | Prior to the adoption of the new lease standard, future minimum lease payments as of June 30, 2019 were as follows (in thousands): Year ending June 30, Operating Leases Finance Leases 2020 $ 4,357 $ 14,219 2021 1,741 17,799 2022 1,164 16,928 2023 894 12,269 2024 1,002 — Thereafter 149 — Total minimum lease payments 9,307 61,215 Less amount representing interest — (6,479 ) Total lease liabilities $ 9,307 $ 54,736 |
Schedule of Operating Lease Right of Use Asset and Liability Prior Period Adjustment | The impact of the correction on the respective balance sheets was as follows (in thousands): September 30, 2019 December 31, 2019 Amounts as reported Adjustments Amounts as corrected Amounts as reported Adjustments Amounts as corrected Operating lease right-of-use assets $ 19,362 $ 16,009 $ 35,371 $ 18,667 $ 15,709 $ 34,376 Total assets $ 749,912 $ 16,009 $ 765,921 $ 763,140 $ 15,709 $ 778,849 Operating lease liabilities - Short-term $ 3,767 $ 620 $ 4,387 $ 3,282 $ 858 $ 4,140 Total current liabilities $ 189,451 $ 620 $ 190,071 $ 184,151 $ 858 $ 185,009 Operating lease liabilities - Long-term $ 15,815 $ 16,054 $ 31,869 $ 15,559 $ 15,778 $ 31,337 Total liabilities $ 312,359 $ 16,054 $ 328,413 $ 322,990 $ 15,778 $ 338,768 |
Shareholders' Equity and Shar_2
Shareholders' Equity and Share-based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Restricted Stock Units Activity | Time-based Restricted Stock Units ("TRSU") The following table summarizes the Company's TRSU activities for the nine months ended March 31, 2020 : Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Nonvested at June 30, 2019 906,341 $ 14.09 1.62 $ 8,465,225 Granted 483,947 $ 8.41 Vested (416,415 ) $ 13.60 Forfeited (21,125 ) $ 13.61 Nonvested at March 31, 2020 952,748 $ 11.42 1.85 $ 6,107,115 The following table summarizes the Company's PRSUs activities for the nine months ended March 31, 2020 : Number of Performance-based Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Nonvested at June 30, 2019 596,724 $ 13.95 1.88 $ 5,573,402 Granted 155,000 $ 7.36 Vested (110,659 ) $ 16.68 Forfeited (80,354 ) $ 11.69 Nonvested at March 31, 2020 560,711 $ 11.92 1.89 $ 3,594,158 |
Summary of Stock Option Activities | The following table summarizes the Company's stock option activities for the nine months ended March 31, 2020 : Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Aggregate Shares Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2019 876,478 $ 10.98 3.06 $ 758,871 Exercised (2,500 ) $ 10.50 $ 4,726 Canceled or forfeited (55,000 ) $ 15.00 Outstanding at March 31, 2020 818,978 $ 10.71 2.48 $ — Options vested and expected to vest 818,978 $ 10.71 2.48 $ — Exercisable at March 31, 2020 818,978 $ 10.71 2.48 $ — |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows: Nine Months Ended March 31, 2020 Volatility rate 46.4% Risk-free interest rate 1.6% Expected term 1.3 years Dividend yield 0% |
Share-based Compensation, Allocation of Recognized Period Costs | Share-based Compensation Expense T he total share-based compensation expense recognized in the condensed consolidated statements of operations for the periods presented was as follows: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands) (in thousands) Cost of goods sold $ 357 $ 494 $ 1,197 $ 1,532 Research and development 991 555 1,987 1,929 Selling, general and administrative 1,528 2,063 4,548 7,198 $ 2,876 $ 3,112 $ 7,732 $ 10,659 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue [Table Text Block] | 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: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands) (in thousands) Hong Kong $ 90,050 $ 87,143 $ 280,396 $ 265,914 China 13,607 18,834 46,690 63,991 South Korea 1,861 260 10,130 568 United States 830 1,684 2,829 5,624 Other countries 504 1,146 2,469 2,967 $ 106,852 $ 109,067 $ 342,514 $ 339,064 The following is a summary of revenue by product type: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (in thousands) (in thousands) Power discrete $ 89,932 $ 89,936 $ 291,964 $ 275,485 Power IC 15,699 17,631 46,078 56,430 Packaging and testing services 1,221 1,500 4,472 7,149 $ 106,852 $ 109,067 $ 342,514 $ 339,064 |
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, by geographical area are as follows: March 31, June 30, (in thousands) China $ 312,345 $ 321,145 United States 99,206 87,817 Other Countries 767 775 $ 412,318 $ 409,737 |
The Company and Significant A_3
The Company and Significant Accounting Policies - Basis of Preparation (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Property and equipment purchased but not yet paid (fiscal year 2019 amount is presented as revised, see Note 1) | $ 15,911 | $ 32,738 |
Restatement Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Property and equipment purchased but not yet paid (fiscal year 2019 amount is presented as revised, see Note 1) | 18,100 | |
Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Property and equipment purchased but not yet paid (fiscal year 2019 amount is presented as revised, see Note 1) | $ 50,800 |
The Company and Significant A_4
The Company and Significant Accounting Policies - Joint Venture (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jul. 01, 2019 | |
Operating lease right-of-use assets, net | $ 32,739 | $ 32,739 | $ 34,376 | $ 35,371 | |||
Operating lease liability | 34,087 | 34,087 | |||||
Government Grants, Reduction Recorded To Interest Expense | $ 700 | $ 100 | $ 4,100 | $ 100 | |||
Parent Company | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | |||||||
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') | |||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 49.00% | ||||||
ASU 2016-02 | |||||||
Operating lease right-of-use assets, net | $ 21,000 | ||||||
Operating lease liability | $ 21,000 |
The Company and Significant A_5
The Company and Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 4.3 | $ 2.4 |
The Company and Significant A_6
The Company and Significant Accounting Policies - Impairment of Privately-held Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Payment to acquire investment | $ 600 | ||||
Investment impairment | $ 600 | $ 0 | $ 600 | $ 0 |
The Company and Significant A_7
The Company and Significant Accounting Policies - Government Grants (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Government Grants, Reduction Recorded To Interest Expense | $ 0.7 | $ 0.1 | $ 4.1 | $ 0.1 |
Government Grants, Reduction Recorded To Property, Plant And Equipment | 0 | 1.3 | ||
Government Grants, Reduction Recorded To Operating Expenses | $ 1.8 | $ 2 |
Net Income Per Common Share A_3
Net Income Per Common Share Attributable to Alpha and Omega Semiconductor Limited - Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||||
Net loss attributable to Alpha and Omega Semiconductor Limited | $ (6,495) | $ (1,555) | $ (6,491) | $ (684) |
Basic: | ||||
Weighted average number of common shares used to compute basic net loss per share | 24,894 | 24,084 | 24,711 | 23,938 |
Effect of potentially dilutive securities: | ||||
Stock options, RSUs and ESPP shares | 0 | 0 | 0 | 0 |
Weighted average number of common shares used to compute diluted net loss per share | 24,894 | 24,084 | 24,711 | 23,938 |
Net loss per share attributable to Alpha and Omega Semiconductor Limited: | ||||
Basic (in dollars per share) | $ (0.26) | $ (0.06) | $ (0.26) | $ (0.03) |
Diluted (in dollars per share) | $ (0.26) | $ (0.06) | $ (0.26) | $ (0.03) |
Net Income Per Common Share A_4
Net Income Per Common Share Attributable to Alpha and Omega Semiconductor Limited - Potential Dilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive securities (in shares) | 2,665 | 3,116 | 2,825 | 3,208 |
Employee stock options and RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive securities (in shares) | 2,038 | 2,225 | 2,043 | 2,220 |
ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive securities (in shares) | 627 | 891 | 782 | 988 |
Concentration of Credit Risk _3
Concentration of Credit Risk and Significant Customers - (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Concentration Risk | |||||||
Revenue | $ 106,852 | $ 109,067 | $ 342,514 | $ 339,064 | |||
Minimum | |||||||
Concentration Risk | |||||||
Terms of credit sales, (in days) | 30 days | ||||||
Maximum | |||||||
Concentration Risk | |||||||
Terms of credit sales, (in days) | 60 days | ||||||
Huawei | Revenue | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Customers greater than 10% of total | 2.00% | ||||||
Huawei | Minimum | Revenue | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Revenue | $ 11,000 | ||||||
Huawei | Maximum | Revenue | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Revenue | $ 13,000 | ||||||
Customer A | Revenue | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Customers greater than 10% of total | 27.50% | 26.80% | 29.20% | 28.40% | |||
Customer A | Accounts Receivable | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Customers greater than 10% of total | 12.10% | ||||||
Customer B | Revenue | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Customers greater than 10% of total | 36.40% | 36.20% | 36.20% | 37.30% | |||
Customer B | Accounts Receivable | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Customers greater than 10% of total | 22.30% | 19.70% | |||||
Customer C | Accounts Receivable | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Customers greater than 10% of total | 22.30% | 18.10% | |||||
Customer D | Accounts Receivable | Customer Concentration Risk | |||||||
Concentration Risk | |||||||
Customers greater than 10% of total | 13.30% |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 50,014 | $ 48,401 |
Less: Allowance for price adjustments | (32,514) | (24,075) |
Less: Allowance for doubtful accounts | (30) | (30) |
Accounts receivable, net | $ 17,470 | $ 24,296 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 56,750 | $ 59,076 |
Work in-process | 55,606 | 38,214 |
Finished goods | 15,039 | 14,353 |
Inventory, net | $ 127,395 | $ 111,643 |
Balance Sheet Components - Othe
Balance Sheet Components - Other current assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
VAT receivable | $ 27,165 | $ 30,769 |
Other prepaid expenses | 1,958 | 2,745 |
Prepaid insurance | 900 | 939 |
Prepaid maintenance | 593 | 481 |
Prepayment to supplier | 769 | 583 |
Prepaid income tax | 1,140 | 267 |
Customs deposit | 162 | 114 |
Lease financing cost | 0 | 825 |
Interest receivable | 1,339 | 379 |
Payroll tax receivable | 492 | 0 |
Other Assets, Current | $ 34,518 | $ 37,102 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, plant, and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | $ 648,065 | $ 465,219 |
Land use rights | 8,480 | 8,760 |
Less: accumulated depreciation | (280,269) | (252,982) |
Property, plant and equipment excluding equipment and construction in progress, net | 367,796 | 212,237 |
Equipment and construction in progress | 44,522 | 197,500 |
Property, plant and equipment, net | 412,318 | 409,737 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 4,877 | 4,877 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 58,640 | 36,205 |
Manufacturing machinery and facility equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 440,823 | 303,750 |
Equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 25,211 | 20,739 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 38,651 | 34,048 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 3,368 | 3,243 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | $ 68,015 | $ 53,597 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 19,455 | $ 19,455 |
Less: accumulated amortization | (2,926) | (2,842) |
Finite-Lived Intangible Assets, Net | 16,529 | 16,613 |
Goodwill | 269 | 269 |
Intangible assets, net | 16,798 | 16,882 |
Patents and technology rights | ||
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 18,037 | 18,037 |
Trade name | ||
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 268 | 268 |
Customer relationships | ||
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 1,150 | $ 1,150 |
Balance Sheet Components - In_2
Balance Sheet Components - Intangible Assets, Additional Information (Details) $ in Millions | Mar. 31, 2020USD ($) |
STMicro | License fees | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Net | $ 16.2 |
Balance Sheet Components - Futu
Balance Sheet Components - Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
2020 (Remaining) | $ 28 | |
2021 | 2,548 | |
2022 | 3,360 | |
2023 | 3,286 | |
2024 | 3,249 | |
Thereafter | 4,058 | |
Finite-Lived Intangible Assets, Net | $ 16,529 | $ 16,613 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other long term assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepayments for property and equipment | $ 3,747 | $ 4,846 |
Investment in a privately held company | 100 | 700 |
Lease financing costs, noncurrent | 0 | 1,758 |
Custom deposit, noncurrent | 886 | 980 |
Other long-term deposits | 839 | 889 |
Office lease deposit, noncurrent | 1,039 | 1,031 |
Other | 170 | 413 |
Other long-term assets | $ 6,781 | $ 10,617 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued compensation and benefits | $ 16,772 | $ 16,385 | ||
Warranty accrual | 672 | 623 | $ 655 | $ 535 |
Stock rotation accrual | 3,307 | 1,921 | $ 1,723 | $ 1,750 |
Accrued professional fees | 5,261 | 1,721 | ||
Accrued inventory | 487 | 857 | ||
Accrued facilities related expenses | 1,995 | 4,233 | ||
Accrued financing lease costs | 705 | 728 | ||
Accrued property, plant and equipment | 9,745 | 11,527 | ||
ESPP payable | 1,913 | 585 | ||
Customer deposit | 2,556 | 351 | ||
Other accrued expenses | 7,159 | 5,144 | ||
Accrued liabilities | $ 50,572 | $ 44,075 |
Balance Sheet Components - Prod
Balance Sheet Components - Product Warranty Accrual (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning balance | $ 623 | $ 535 |
Additions | 852 | 189 |
Utilization | (803) | (69) |
Ending balance | $ 672 | $ 655 |
Balance Sheet Components - Stoc
Balance Sheet Components - Stock Rotation Accrual (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Rotation Accrual Increae (Decrease) [Roll Forward] | ||
Beginning balance | $ 1,921 | $ 1,750 |
Additions | 7,413 | 3,589 |
Utilization | (6,027) | (3,616) |
Ending balance | $ 3,307 | $ 1,723 |
Balance Sheet Components - Ot_3
Balance Sheet Components - Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Customer deposits | $ 8,000 | $ 10,000 |
Computer software liabilities | 2,356 | 3,701 |
Other | 0 | 220 |
Other long-term liabilities | $ 10,356 | $ 13,921 |
Balance Sheet Components - Ot_4
Balance Sheet Components - Other Long-Term Liabilities Reclassification (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Schedule Of Long-Term Liabilities [Line Items] | ||
Customer deposits | $ 8,000,000 | $ 10,000,000 |
Accrued liabilities | 50,572,000 | $ 44,075,000 |
Customer A And Customer B | ||
Schedule Of Long-Term Liabilities [Line Items] | ||
Customer deposits | 2,000,000 | |
Accrued liabilities | $ 2,000,000 |
Bank Borrowing (Details)
Bank Borrowing (Details) | Mar. 31, 2020CNY (¥) | Mar. 31, 2020USD ($) | Aug. 09, 2019USD ($) | Mar. 12, 2019CNY (¥) | May 09, 2018CNY (¥) | Aug. 15, 2017USD ($) | Feb. 29, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Oct. 31, 2019CNY (¥) | Mar. 31, 2019CNY (¥) | Jul. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 31, 2019USD ($) | Sep. 23, 2019CNY (¥) | Sep. 23, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 21, 2019CNY (¥)Rate | Mar. 12, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 04, 2018CNY (¥) | Nov. 29, 2018CNY (¥) | Nov. 16, 2018CNY (¥) | Nov. 16, 2018USD ($) | May 09, 2018USD ($) | May 01, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Restricted cash | $ 4,300,000 | $ 2,400,000 | ||||||||||||||||||||||||||||
Maturities of debt | ||||||||||||||||||||||||||||||
2020 (Remaining) | 9,648,000 | |||||||||||||||||||||||||||||
2020 | 28,641,000 | |||||||||||||||||||||||||||||
2021 | 20,022,000 | |||||||||||||||||||||||||||||
2022 | 28,511,000 | |||||||||||||||||||||||||||||
2023 | 12,082,000 | |||||||||||||||||||||||||||||
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal after Year Five | 8,881,000 | |||||||||||||||||||||||||||||
Total principal of debts | 107,785,000 | |||||||||||||||||||||||||||||
Less: debt issuance costs | (768,000) | |||||||||||||||||||||||||||||
Total principal of debt, less debt issuance costs | 107,017,000 | |||||||||||||||||||||||||||||
Long-term Debt, Current Maturities | 32,812,000 | 26,609,000 | ||||||||||||||||||||||||||||
Long-term Debt, Excluding Current Maturities | 74,205,000 | $ 59,380,000 | ||||||||||||||||||||||||||||
Long-term Debt, Current Maturities, And Short-Term Debt, Gross | 33,099,000 | |||||||||||||||||||||||||||||
Long-term Debt, Excluding Current Maturities, Gross | 74,686,000 | |||||||||||||||||||||||||||||
Debt Issuance Costs, Gross, Current | (287,000) | |||||||||||||||||||||||||||||
Debt Issuance Cost, Gross, Noncurrent | (481,000) | |||||||||||||||||||||||||||||
Long-term Debt, Current Maturities, And Short-term Debt | 32,812,000 | |||||||||||||||||||||||||||||
Term Loan | Secured Debt | Variable Interest Rate Term Loan Maturing August 2022 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, term | 5 years | 5 years | ||||||||||||||||||||||||||||
Bank Of Communications Limited | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ 60,000,000 | $ 8,500,000 | ||||||||||||||||||||||||||||
Loan agreements, short-term debt | 0 | |||||||||||||||||||||||||||||
China Merchant Bank And Chongqing LiangJiang New District China Merchants Group Limited Company | Loan Agreement November 29 2018 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | ¥ | ¥ 80,000,000 | |||||||||||||||||||||||||||||
China Merchant Bank And Chongqing LiangJiang New District China Merchants Group Limited Company | Loan Agreement December 4 2018 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | ¥ | ¥ 20,000,000 | |||||||||||||||||||||||||||||
China Merchant Bank And Chongqing LiangJiang New District China Merchants Group Limited Company | Loan Agreements November 29 And December 4 2018 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 14,500,000 | |||||||||||||||||||||||||||||
Loan agreements, short-term debt | 14,100,000 | |||||||||||||||||||||||||||||
Hongkong And Shanghai Banking Corporation Limited [Member] | Secured Debt | Accounts Receivable Factoring Agreement August 9 2019 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Accounts Receivable Factoring Agreement, Amount Borrowed | $ 8,000,000 | |||||||||||||||||||||||||||||
Accounts receivable factoring agreement, maximum borrowing capacity, percent of net accounts receivable | 70.00% | |||||||||||||||||||||||||||||
Accounts receivable factoring agreement, maximum borrowing capacity | $ 30,000,000 | |||||||||||||||||||||||||||||
Accounts receivable factoring agreement, remaining borrowing capacity | 30,000,000 | |||||||||||||||||||||||||||||
Basis spread on variable rate | 1.75% | |||||||||||||||||||||||||||||
Repayments of accounts receivable factoring agreement | $ 8,000,000 | |||||||||||||||||||||||||||||
Accounts receivable factoring agreement, borrowed amount outstanding | 0 | |||||||||||||||||||||||||||||
YinHai Leasing Company and China Import/Export Bank | Lease Financing | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ 400,000,000 | $ 62,800,000 | ||||||||||||||||||||||||||||
Nominal sale amount at end of lease term | ¥ | ¥ 1 | |||||||||||||||||||||||||||||
Amount outstanding | ¥ 325,000,000 | 45,800,000 | ||||||||||||||||||||||||||||
China Development Bank | Secured Debt | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 24,000,000 | |||||||||||||||||||||||||||||
Basis spread on variable rate | 2.80% | |||||||||||||||||||||||||||||
Long-term debt | 24,000,000 | |||||||||||||||||||||||||||||
China Development Bank | London Interbank Offered Rate (LIBOR) | Secured Debt | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Basis spread on variable rate | 2.80% | |||||||||||||||||||||||||||||
Export-Import Bank Of China | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Restricted cash | ¥ 14,000,000 | $ 2,000,000 | ||||||||||||||||||||||||||||
Line of credit facility outstanding balance | ¥ 197,000,000 | $ 27,800,000 | ||||||||||||||||||||||||||||
Export-Import Bank Of China | Secured Debt | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ 200,000,000 | $ 29,800,000 | ||||||||||||||||||||||||||||
Proceeds from lines of credit | ¥ | ¥ 10,000,000 | ¥ 190,000,000 | ||||||||||||||||||||||||||||
Repayments of Lines of Credit | ¥ | ¥ 3,000,000 | |||||||||||||||||||||||||||||
Maturities of debt | ||||||||||||||||||||||||||||||
Line Of Credit Facility, Interest Rate During Period, China Base Rate Multiplier | 1.1 | |||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate During Period | 5.39% | |||||||||||||||||||||||||||||
The Bank | Secured Debt | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 17,800,000 | |||||||||||||||||||||||||||||
Amount outstanding | 16,200,000 | |||||||||||||||||||||||||||||
Stated percentage | 5.04% | |||||||||||||||||||||||||||||
The Bank | Term Loan | Secured Debt | Variable Interest Rate Term Loan Maturing August 2022 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | |||||||||||||||||||||||||||||
Amount outstanding | 18,600,000 | |||||||||||||||||||||||||||||
Proceeds from lines of credit | $ 16,700,000 | $ 13,200,000 | ||||||||||||||||||||||||||||
The Bank | Minimum | London Interbank Offered Rate (LIBOR) | Term Loan | Secured Debt | Variable Interest Rate Term Loan Maturing August 2022 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Basis spread on variable rate | 1.75% | |||||||||||||||||||||||||||||
The Bank | Maximum | London Interbank Offered Rate (LIBOR) | Term Loan | Secured Debt | Variable Interest Rate Term Loan Maturing August 2022 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||||||||||||||||||||
China | Bank Of Communications Limited | Base Rate | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Basis spread on variable rate, multiple | 1.05 | 1.05 | ||||||||||||||||||||||||||||
Basis spread on variable rate | 4.99% | |||||||||||||||||||||||||||||
China | YinHai Leasing Company and China Import/Export Bank | Base Rate | Lease Financing | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Basis spread on variable rate, multiple | 1.15 | 1.15 | ||||||||||||||||||||||||||||
Basis spread on variable rate | 5.4625% | |||||||||||||||||||||||||||||
Foreign Line of Credit | China Everbright Bank | Loan Agreement September 23 2019 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ 50,000,000 | $ 7,100,000 | ||||||||||||||||||||||||||||
Line of credit facility, amount drawn | $ 5,500,000 | $ 1,600,000 | ||||||||||||||||||||||||||||
Loan agreements, short-term debt | 7,100,000 | |||||||||||||||||||||||||||||
Foreign Line of Credit | Industrial And Commercial Bank of China | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ 72,000,000 | $ 10,300,000 | ||||||||||||||||||||||||||||
Loan agreements, short-term debt | 0 | |||||||||||||||||||||||||||||
Loans Payable | China Everbright Bank | Loan Agreement March 21 2019 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 3,000,000 | ¥ 20,000,000 | ||||||||||||||||||||||||||||
Loan agreements, short-term debt | $ 0 | |||||||||||||||||||||||||||||
Short-term debt, fixed interest rate | Rate | 5.44% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands, ¥ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | May 09, 2018CNY (¥) | May 09, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Operating lease, term of contract | 10 years | ||||
Operating lease liability | $ 34,087 | ||||
ROU assets associated with operating leases | $ 35,371 | $ 34,376 | 32,739 | ||
Non-cash increase in right-of-use operating lease assets | $ 16,009 | ||||
Lease Financing | YinHai Leasing Company and China Import/Export Bank | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | ¥ 400 | $ 62,800 | |||
Amounts as reported | |||||
Debt Instrument [Line Items] | |||||
ROU assets associated with operating leases | 19,362 | 18,667 | |||
Non-cash increase in right-of-use operating lease assets | 0 | 0 | |||
Headquarters' Operating Lease Right of Use Asset and Liability | Adjustments | |||||
Debt Instrument [Line Items] | |||||
Operating lease liability | 16,000 | ||||
ROU assets associated with operating leases | 16,009 | 15,709 | |||
Non-cash increase in right-of-use operating lease assets | $ 16,000 | $ 16,000 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Expenses (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Operating Leases: | |
Fixed rent expense | $ 4,480 |
Variable rent expense | 623 |
Finance Lease: | |
Amortization of equipment | 2,304 |
Interest | 2,142 |
Short-term leases | |
Short-term lease expenses | 224 |
Total lease expenses | $ 9,773 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Operating Leases: | |||
ROU assets associated with operating leases | $ 32,739 | $ 34,376 | $ 35,371 |
Finance Lease: | |||
Property, plant and equipment, gross | 104,109 | ||
Accumulated depreciation | (85,967) | ||
Property, plant and equipment, net | $ 18,142 | ||
Weighted average remaining lease term (in years) | |||
Operating leases | 9 years 11 months 26 days | ||
Finance lease | 2 years 11 months 19 days | ||
Weighted average discount rate | |||
Operating leases | 4.48% | ||
Finance lease | 5.46% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Cash paid from amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 3,828 |
Operating cash flows from finance lease | 2,142 |
Financing cash flows from finance lease | 7,213 |
Non-cash increase in right-of-use operating lease assets | $ 16,009 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Topic 842) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases | |
The remainder of 2020 | $ 1,339 |
2021 | 5,090 |
2022 | 4,624 |
2023 | 4,315 |
2024 | 3,934 |
2025 | 3,514 |
Thereafter | 20,663 |
Total minimum lease payments | 43,479 |
Less amount representing interest | (9,392) |
Total lease liabilities | 34,087 |
Finance Leases | |
The remainder of 2020 | 4,444 |
2021 | 17,229 |
2022 | 16,386 |
2023 | 11,877 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total minimum lease payments | 49,936 |
Less amount representing interest | (4,138) |
Total lease liabilities | $ 45,798 |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments (Topic 840) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases, Operating [Abstract] | |
2020 | $ 4,357 |
2021 | 1,741 |
2022 | 1,164 |
2023 | 894 |
2024 | 1,002 |
Thereafter | 149 |
Total lease liabilities | 9,307 |
Leases, Capital [Abstract] | |
2020 | 14,219 |
2021 | 17,799 |
2022 | 16,928 |
2023 | 12,269 |
2024 | 0 |
Thereafter | 0 |
Total minimum lease payments | 61,215 |
Less amount representing interest | (6,479) |
Total lease liabilities | $ 54,736 |
Leases - Lease Right Of Use Ass
Leases - Lease Right Of Use Asset and Liability Error Correction (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating lease right-of-use assets, net | $ 32,739 | $ 34,376 | $ 35,371 | |
Total assets | 767,295 | 778,849 | 765,921 | $ 739,394 |
Operating lease liabilities - Short-term | 3,839 | 4,140 | 4,387 | |
Total current liabilities | 190,834 | 185,009 | 190,071 | $ 177,964 |
Operating lease liabilities - Long-term | $ 30,248 | 31,337 | 31,869 | |
Total liabilities | 338,768 | 328,413 | ||
Amounts as reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating lease right-of-use assets, net | 18,667 | 19,362 | ||
Total assets | 763,140 | 749,912 | ||
Operating lease liabilities - Short-term | 3,282 | 3,767 | ||
Total current liabilities | 184,151 | 189,451 | ||
Operating lease liabilities - Long-term | 15,559 | 15,815 | ||
Total liabilities | 322,990 | 312,359 | ||
Headquarters' Operating Lease Right of Use Asset and Liability | Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Operating lease right-of-use assets, net | 15,709 | 16,009 | ||
Total assets | 15,709 | 16,009 | ||
Operating lease liabilities - Short-term | 858 | 620 | ||
Total current liabilities | 858 | 620 | ||
Operating lease liabilities - Long-term | 15,778 | 16,054 | ||
Total liabilities | $ 15,778 | $ 16,054 |
Shareholders' Equity and Shar_3
Shareholders' Equity and Share-based Compensation - Shares Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 113 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | |
Class of Stock [Line Items] | |||||
Treasury Stock, Shares, Retired | 0 | ||||
Share repurchase program, authorized amount (USD in Millions) | $ 30,000 | $ 30,000 | $ 30,000 | ||
Repurchase of common shares under shares repurchase program | 0 | 6,784,648 | |||
Treasury stock acquired, average price per share (in dollars per share) | $ 9.92 | ||||
Repurchase of common shares under shares repurchase program | $ (1,501) | $ (67,300) | |||
Shares repurchase program, remaining balance | $ 13,400 | $ 13,400 | $ 13,400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | 0 | |
Share-based payment arrangement, expense | $ 2,876 | $ 3,112 | $ 7,732 | $ 10,659 | |
Treasury Stock Reissued | |||||
Class of Stock [Line Items] | |||||
Treasury stock acquired, average price per share (in dollars per share) | $ 10.32 | ||||
Shares reissued (in shares) | 145,428 | ||||
Shares reissued, average price (in dollars per share) | $ 5.30 | ||||
Market-based Restricted Stock Units (MSU) [Member] | |||||
Class of Stock [Line Items] | |||||
Share-based payment arrangement, expense | $ 100 | $ 100 | $ 400 | $ 500 |
Shareholders' Equity and Shar_4
Shareholders' Equity and Share-based Compensation - Time-based Restricted Stock Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
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 (in years) | 2 years 2 months 12 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at June 30, 2018 (in shares) | 906,341 | ||
Granted (in shares) | 483,947 | ||
Vested (in shares) | (416,415) | ||
Forfeited (in shares) | (21,125) | ||
Nonvested at March 31, 2019 (in shares) | 952,748 | 906,341 | 952,748 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested at June 30, 2018 (in dollars per share) | $ 14.09 | ||
Granted (in dollars per share) | 8.41 | ||
Vested (in dollars per share) | 13.60 | ||
Forfeited (in dollars per share) | 13.61 | ||
Nonvested at March 31, 2019 (in dollars per share | $ 11.42 | $ 14.09 | $ 11.42 |
Weighted average remaining recognition period (in years) | 1 year 10 months 6 days | 1 year 7 months 13 days | |
Aggregate Intrinsic Value | $ 6,107,115 | $ 8,465,225 | $ 6,107,115 |
Shareholders' Equity and Shar_5
Shareholders' Equity and Share-based Compensation - Market-based Restricted Stock Units Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment arrangement, expense | $ 2,876 | $ 3,112 | $ 7,732 | $ 10,659 | |
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 (in years) | 2 years 2 months 12 days | ||||
Market-based Restricted Stock Units (MSU) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Risk-free interest rate | 2.70% | ||||
Expected term | 3 years 6 months | ||||
Expected volatility | 38.80% | ||||
Dividend yield | 0.00% | ||||
Share-based payment arrangement, expense | $ 100 | $ 100 | $ 400 | $ 500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Granted (in shares) | 1,300,000 | ||||
Market-based Restricted Stock Units (MSU) [Member] | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award service period | 4 years 6 months | ||||
Market-based Restricted Stock Units (MSU) [Member] | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award service period | 7 years 6 months |
Shareholders' Equity and Shar_6
Shareholders' Equity and Share-based Compensation - Performance-based Restricted Stock Units (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, expense | $ 2,876,000 | $ 3,112,000 | $ 7,732,000 | $ 10,659,000 | ||
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 (in years) | 2 years 2 months 12 days | |||||
Performance Based Restricted Stock Units (PRSUs) Member | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, expense | $ 400,000 | 800,000 | $ 1,100,000 | 2,200,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested at June 30, 2018 (in shares) | 596,724 | |||||
Granted (in shares) | 155,000 | |||||
Vested (in shares) | (110,659) | |||||
Forfeited (in shares) | (80,354) | |||||
Nonvested at March 31, 2019 (in shares) | 560,711 | 596,724 | 560,711 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Nonvested at June 30, 2018 (in dollars per share) | $ 13.95 | |||||
Granted (in dollars per share) | 7.36 | |||||
Vested (in dollars per share) | 16.68 | |||||
Forfeited (in dollars per share) | 11.69 | |||||
Nonvested at March 31, 2019 (in dollars per share | $ 11.92 | $ 13.95 | $ 11.92 | |||
Weighted average remaining recognition period (in years) | 1 year 10 months 20 days | 1 year 10 months 17 days | ||||
Aggregate Intrinsic Value | $ 3,594,158 | $ 5,573,402 | $ 3,594,158 | |||
Market-based Restricted Stock Units (MSU) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based payment arrangement, expense | $ 100,000 | $ 100,000 | $ 400,000 | $ 500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted (in shares) | 1,300,000 |
Shareholders' Equity and Shar_7
Shareholders' Equity and Share-based Compensation - Stock Options Outstanding and Exercisable (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at June 30, 2019 (in shares) | 876,478 | ||
Exercised (in shares) | 2,500 | ||
Canceled or forfeited (in shares) | 55,000 | ||
Outstanding at December 31, 2019 (In shares) | 818,978 | 876,478 | 818,978 |
Options vested and expected to vest (in shares) | 818,978 | 818,978 | |
Exercisable at December 31, 2019 (in shares) | 818,978 | 818,978 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at June 30, 2019 (in dollars per share) | $ 10.98 | ||
Exercised (in dollars per share) | 10.50 | ||
Canceled or forfeited (in dollars per share) | 15 | ||
Outstanding at December 31, 2019 (in dollars per share) | $ 10.71 | $ 10.98 | 10.71 |
Options vested and expected to vest (in dollars per share) | 10.71 | 10.71 | |
Exercisable at December 31, 2019 (in dollars per share) | $ 10.71 | $ 10.71 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options outstanding, Weighted-Average Remaining Contractual Life (in years) | 3 years 21 days | 2 years 5 months 23 days | |
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 2 years 5 months 23 days | ||
Exercisable at December 31, 2019, Weighted Average Remaining Contractual Life (in years) | 2 years 5 months 23 days | ||
Options outstanding, Aggregate Intrinsic Value | $ 0 | $ 758,871 | $ 0 |
Exercised, Aggregate Intrinsic Value | 4,726 | ||
Options vested and expected to vest, Aggregate Intrinsic Value | 0 | 0 | |
Exercisable at December 31, 2019, Aggregate Intrinsic Value | $ 0 | $ 0 |
Shareholders' Equity and Shar_8
Shareholders' Equity and Share-based Compensation - Employee Share Purchase Plan (Details) - shares | 9 Months Ended | 113 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Repurchase of common shares under shares repurchase program | 0 | 6,784,648 |
Employee Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility rate | 46.40% | |
Risk-free interest rate | 1.60% | |
Expected term | 1 year 3 months 18 days | |
Dividend yield | 0.00% |
Shareholders' Equity and Shar_9
Shareholders' Equity and Share-based Compensation - Share-based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 113 Months Ended | ||||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | $ 2,876,000 | $ 3,112,000 | $ 7,732,000 | $ 10,659,000 | |||
Repurchase of common shares under shares repurchase program | 0 | 6,784,648 | |||||
Options outstanding, Weighted-Average Remaining Contractual Life (in years) | 3 years 21 days | 2 years 5 months 23 days | |||||
Options vested and expected to vest (in shares) | 818,978 | 818,978 | 818,978 | ||||
Options vested and expected to vest (in dollars per share) | $ 10.71 | $ 10.71 | $ 10.71 | ||||
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 2 years 5 months 23 days | ||||||
Options vested and expected to vest, Aggregate Intrinsic Value | $ 0 | $ 0 | $ 0 | ||||
Exercisable at December 31, 2019 (in shares) | 818,978 | 818,978 | 818,978 | ||||
Exercisable at December 31, 2019 (in dollars per share) | $ 10.71 | $ 10.71 | $ 10.71 | ||||
Exercisable at December 31, 2019, Weighted Average Remaining Contractual Life (in years) | 2 years 5 months 23 days | ||||||
Exercisable at December 31, 2019, Aggregate Intrinsic Value | $ 0 | $ 0 | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||
Outstanding at June 30, 2019 (in shares) | 876,478 | ||||||
Outstanding at December 31, 2019 (In shares) | 818,978 | 876,478 | 818,978 | 818,978 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||||
Outstanding at June 30, 2019 (in dollars per share) | $ 10.98 | ||||||
Outstanding at December 31, 2019 (in dollars per share) | $ 10.71 | $ 10.98 | $ 10.71 | $ 10.71 | |||
Options outstanding, Aggregate Intrinsic Value | $ 0 | $ 758,871 | $ 0 | $ 0 | |||
Market-based Restricted Stock Units (MSU) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | 100,000 | 100,000 | 400,000 | 500,000 | |||
Granted (in shares) | 1,300,000 | ||||||
Performance Based Restricted Stock Units (PRSUs) Member | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | $ 400,000 | $ 800,000 | $ 1,100,000 | $ 2,200,000 | |||
Granted (in shares) | 155,000 |
Shareholders' Equity and Sha_10
Shareholders' Equity and Share-based Compensation - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based payment arrangement, expense | $ 2,876 | $ 3,112 | $ 7,732 | $ 10,659 |
Unrecognized compensation expense | $ 10,600 | 10,600 | ||
Recognition period of share-based compensation expense (in years) | 2 years 2 months 12 days | |||
Cost of goods sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based payment arrangement, expense | $ 357 | 494 | 1,197 | 1,532 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based payment arrangement, expense | 991 | 555 | 1,987 | 1,929 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based payment arrangement, expense | $ 1,528 | $ 2,063 | $ 4,548 | $ 7,198 |
Income Taxes - Narrative (Deta
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,015 | $ (625) | $ 37 | $ (1,886) |
Discrete income tax expense (benefit) | 1,300 | 1,300 | ||
Discrete income tax expense (benefit), remeasure of tax net operating loss tax benefit, US CARES Act | 1,100 | 1,100 | ||
Discrete income tax expense (benefit), prior year reserve release | $ 200 | $ 200 | $ 200 | $ 100 |
Estimated effective income tax rate excluding discrete income tax expense | (2.30%) | (14.80%) | (7.40%) | (19.20%) |
Unrecognized tax benefits | $ 7,200 | $ 7,200 | ||
Unrecognized tax benefit that would impact effective tax rate | $ 4,200 | $ 4,200 |
Segment and Geographic Inform_3
Segment and Geographic Information - Revenue by Location and Product Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 106,852 | $ 109,067 | $ 342,514 | $ 339,064 |
Power discrete | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 89,932 | 89,936 | 291,964 | 275,485 |
Power IC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 15,699 | 17,631 | 46,078 | 56,430 |
Packaging and testing services | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 1,221 | 1,500 | 4,472 | 7,149 |
Hong Kong | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 90,050 | 87,143 | 280,396 | 265,914 |
China | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 13,607 | 18,834 | 46,690 | 63,991 |
South Korea | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 1,861 | 260 | 10,130 | 568 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 830 | 1,684 | 2,829 | 5,624 |
Other countries | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 504 | $ 1,146 | $ 2,469 | $ 2,967 |
Segment and Geographic Inform_4
Segment and Geographic Information - Long-lived Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net and land use rights, net | $ 412,318 | $ 409,737 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net and land use rights, net | 312,345 | 321,145 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net and land use rights, net | 99,206 | 87,817 |
Other Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net and land use rights, net | $ 767 | $ 775 |
Segment and Geographic Inform_5
Segment and Geographic Information - Narratives (Details) | 9 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 |
Raw materials, wafers, and packaging and testing services puchase commitments | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 57.2 | $ 59.5 |
Property and equipment purchase commitments | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 23.1 | $ 33.8 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingencies and Indemnities (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Indemnifications accrual | $ 0 | $ 0 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Event | Apr. 26, 2020CNY (¥) | Apr. 30, 2020CNY (¥) | Apr. 30, 2020USD ($) | Apr. 26, 2020USD ($) | Apr. 15, 2020CNY (¥) | Apr. 15, 2020USD ($) |
China Everbright Bank | Loan Agreement April 15, 2020 | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | ¥ 100,000,000 | $ 14,300,000 | ||||
Proceeds from issuance of long-term debt | ¥ 20,000,000 | $ 2,800,000 | ||||
Stated percentage | 5.1375% | 5.1375% | ||||
China Development Bank, Agricultural Bank Of China, China Merchants Bank And Chongqing Rural Commercial Bank | Loan Agreement April 26, 2020 | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | ¥ 250,000,000 | $ 35,700,000 | ||||
China One-Year Loan Prime Rate (LPR) | China Development Bank, Agricultural Bank Of China, China Merchants Bank And Chongqing Rural Commercial Bank | Loan Agreement April 26, 2020 | ||||||
Subsequent Event [Line Items] | ||||||
Basis spread on variable rate | 1.30% |