Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2022 | Apr. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | false | |
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) | 27,068,516 | |
Entity Central Index Key | 0001387467 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 323,134 | $ 202,412 |
Restricted cash | 236 | 233 |
Accounts receivable, net | 39,207 | 35,789 |
Due from Related Parties, Current | 15,171 | 0 |
Inventories | 143,538 | 154,293 |
Other current assets | 11,698 | 14,595 |
Total current assets | 517,813 | 407,322 |
Property, plant and equipment, net | 245,770 | 436,977 |
Operating lease right-of-use assets, net | 24,971 | 34,660 |
Intangible assets, net | 10,890 | 13,410 |
Equity Method Investments | 379,824 | 0 |
Deferred income tax assets | 436 | 5,167 |
Restricted cash - long-term | 0 | 2,168 |
Other long-term assets | 29,465 | 18,869 |
Total assets | 1,209,169 | 918,573 |
Current liabilities: | ||
Accounts payable | 69,758 | 80,699 |
Accrued liabilities | 91,333 | 69,494 |
Income taxes payable | 6,733 | 2,604 |
Short-term debt | 11,332 | 58,030 |
Finance lease liabilities | 862 | 16,724 |
Operating lease liabilities | 4,303 | 5,679 |
Total current liabilities | 199,492 | 233,230 |
Long-term debt | 53,887 | 77,990 |
Income taxes payable - long-term | 1,359 | 1,319 |
Deferred income tax liabilities | 29,192 | 2,448 |
Finance lease liabilities - long-term | 3,834 | 12,698 |
Operating lease liabilities - long-term | 22,120 | 30,440 |
Other long-term liabilities | 72,384 | 44,123 |
Total liabilities | 382,268 | 402,248 |
Commitments and contingencies (Note 12) | ||
Preferred shares, par value $0.002 per share: | ||
Authorized: 10,000 shares; issued and outstanding: none at March 31, 2022 and June 30, 2021 | 0 | 0 |
Common shares, par value $0.002 per share: | ||
Authorized: 100,000 shares; issued and outstanding: 33,681 shares and 27,063 shares, respectively at March 31, 2022 and 32,975 shares and 26,350 shares, respectively at June 30, 2021 | 67 | 66 |
Treasury shares at cost: 6,618 shares at March 31, 2022 and 6,625 shares at June 30, 2021 | (66,006) | (66,064) |
Additional paid-in capital | 276,509 | 259,993 |
Accumulated other comprehensive income | 1,422 | 2,315 |
Retained earnings | 614,909 | 176,895 |
Total Alpha and Omega Semiconductor Limited shareholder's equity | 826,901 | 373,205 |
Noncontrolling interest | 0 | 143,120 |
Total equity | 826,901 | 516,325 |
Total liabilities and equity | $ 1,209,169 | $ 918,573 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Jun. 30, 2021 |
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 |
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) | 33,681,000 | 32,975,000 |
Common stock, shares outstanding (in shares) | 27,063,000 | 26,350,000 |
Treasury shares (in shares) | 6,618,000 | 6,625,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 203,239 | $ 169,212 | $ 583,593 | $ 479,593 |
Cost of goods sold | 130,837 | 116,521 | 378,259 | 335,630 |
Gross profit | 72,402 | 52,691 | 205,334 | 143,963 |
Operating expenses | ||||
Research and development | 16,545 | 15,557 | 50,873 | 45,671 |
Selling, general and administrative | 24,625 | 19,338 | 70,563 | 56,579 |
Total operating expenses | 41,170 | 34,895 | 121,436 | 102,250 |
Operating income | 31,232 | 17,796 | 83,898 | 41,713 |
Other income (loss), net | 263 | (253) | 720 | 2,087 |
Interest income (expense), net | (308) | (1,562) | (3,025) | (4,832) |
Gain on deconsolidation of the JV Company | 0 | 0 | 399,093 | 0 |
Gain (loss) on changes of equity interest in the JV Company, net | 4,501 | 0 | (3,140) | 0 |
Income (loss) before income taxes | 35,688 | 15,981 | 477,546 | 38,968 |
Income tax expense | 2,902 | 1,014 | 38,318 | 2,694 |
Net income including noncontrolling interest | 32,786 | 14,967 | 439,228 | 36,274 |
Loss on equity investment | 1,136 | 0 | 1,136 | 0 |
Net income | 31,650 | 14,967 | 438,092 | 36,274 |
Net gain (loss) attributable to noncontrolling interest | 0 | (1,133) | 20 | (2,303) |
Net income attributable to Alpha and Omega Semiconductor Limited | $ 31,650 | $ 16,100 | $ 438,072 | $ 38,577 |
Net income per common share attributable to Alpha and Omega Semiconductor Limited | ||||
Basic (in dollars per share) | $ 1.18 | $ 0.62 | $ 16.47 | $ 1.51 |
Diluted (in dollars per share) | $ 1.11 | $ 0.58 | $ 15.58 | $ 1.42 |
Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net income per share | ||||
Basic (in shares) | 26,829 | 25,882 | 26,596 | 25,631 |
Diluted (in shares) | 28,423 | 27,716 | 28,116 | 27,128 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interest through December 1, 2021 | $ 31,650 | $ 14,967 | $ 438,092 | $ 36,274 |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustment | 162 | (799) | 1,649 | 11,718 |
Cumulative translation adjustment removal due to deconsolidation of the JV Company | 0 | 0 | (3,642) | 0 |
Comprehensive income | 31,812 | 14,168 | 436,099 | 47,992 |
Less: Noncontrolling interest | 0 | (1,447) | (1,080) | 3,292 |
Comprehensive income attributable to Alpha and Omega Semiconductor Limited | 31,812 | 15,615 | 437,179 | 44,700 |
Net income including noncontrolling interest | $ 32,786 | $ 14,967 | $ 439,228 | $ 36,274 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Total AOS Shareholders' Equity | Common Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance, including portion attributable to noncontrolling interest | $ 431,888 | |||||||
Beginning balance at Jun. 30, 2020 | $ 293,689 | $ 64 | $ (66,184) | $ 246,103 | $ (5,127) | $ 118,833 | ||
Beginning balance, noncontrolling interest at Jun. 30, 2020 | $ 138,199 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options and release of restricted stock units (in shares) | 0 | |||||||
Exercise of common stock options and release of restricted stock units | 1,624 | 1,624 | 1,624 | |||||
Reissuance of treasury stock upon exercise of common stock options and release of RSUs | 66 | 66 | 120 | (54) | ||||
Withholding tax on restricted stock units | (6,153) | (6,153) | (6,153) | |||||
Issuance of shares under ESPP (in shares) | 1 | |||||||
Issuance of shares under ESPP | 1,636 | 1,636 | 1,635 | |||||
Share-based compensation | 7,725 | 7,725 | 7,725 | |||||
Restricted stock units settlement in connection with service | 2,000 | 2,000 | 2,000 | |||||
Net loss | 38,577 | 38,577 | 38,577 | |||||
Net gain (loss) attributable to noncontrolling interest | (2,303) | (2,303) | ||||||
Net income including noncontrolling interest | 36,274 | |||||||
Cumulative translation adjustment | 6,123 | 6,123 | ||||||
Cumulative translation adjustment, attributable to noncontrolling interest | 5,595 | |||||||
Foreign currency translation adjustment | 11,718 | |||||||
Ending balance at Mar. 31, 2021 | 345,287 | $ 65 | (66,064) | 252,934 | 996 | 157,356 | ||
Ending balance, noncontrolling interest at Mar. 31, 2021 | 141,491 | |||||||
Ending balance, including portion attributable to noncontrolling interest at Mar. 31, 2021 | 486,778 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income including noncontrolling interest through December 1, 2021 | 36,274 | |||||||
Beginning balance, including portion attributable to noncontrolling interest | 474,656 | |||||||
Beginning balance at Dec. 31, 2020 | 331,718 | $ 65 | (66,097) | 254,980 | 1,481 | 141,289 | ||
Beginning balance, noncontrolling interest at Dec. 31, 2020 | 142,938 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options and release of restricted stock units (in shares) | 0 | |||||||
Exercise of common stock options and release of restricted stock units | 129 | 129 | 129 | |||||
Reissuance of treasury stock upon exercise of common stock options and release of RSUs | 0 | 0 | 33 | (33) | ||||
Withholding tax on restricted stock units | (5,200) | (5,200) | (5,200) | |||||
Share-based compensation | 3,025 | 3,025 | 3,025 | |||||
Net loss | 16,100 | 16,100 | 16,100 | |||||
Net gain (loss) attributable to noncontrolling interest | (1,133) | (1,133) | ||||||
Net income including noncontrolling interest | 14,967 | |||||||
Cumulative translation adjustment | (485) | (485) | ||||||
Cumulative translation adjustment, attributable to noncontrolling interest | (314) | |||||||
Foreign currency translation adjustment | (799) | |||||||
Ending balance at Mar. 31, 2021 | 345,287 | $ 65 | (66,064) | 252,934 | 996 | 157,356 | ||
Ending balance, noncontrolling interest at Mar. 31, 2021 | 141,491 | |||||||
Ending balance, including portion attributable to noncontrolling interest at Mar. 31, 2021 | 486,778 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income including noncontrolling interest through December 1, 2021 | 14,967 | |||||||
Beginning balance, including portion attributable to noncontrolling interest | 486,778 | |||||||
Beginning balance, including portion attributable to noncontrolling interest | 516,325 | |||||||
Beginning balance at Jun. 30, 2021 | 373,205 | 373,205 | $ 66 | (66,064) | 259,993 | 2,315 | 176,895 | |
Beginning balance, noncontrolling interest at Jun. 30, 2021 | 143,120 | 143,120 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options and release of restricted stock units (in shares) | 0 | |||||||
Exercise of common stock options and release of restricted stock units | 859 | 859 | 859 | |||||
Reissuance of treasury stock upon exercise of common stock options and release of RSUs | 0 | 0 | 58 | (58) | ||||
Withholding tax on restricted stock units | (8,354) | (8,354) | (8,354) | |||||
Issuance of shares under ESPP (in shares) | 1 | |||||||
Issuance of shares under ESPP | 2,423 | 2,423 | 2,422 | |||||
Share-based compensation | 21,189 | 21,189 | 21,189 | |||||
Restricted stock units settlement in connection with service | 400 | 400 | 400 | |||||
Net loss | 438,072 | 438,072 | 438,072 | |||||
Net gain (loss) attributable to noncontrolling interest | 20 | 20 | ||||||
Net income including noncontrolling interest | 439,228 | |||||||
Cumulative translation adjustment | 900 | 900 | ||||||
Cumulative translation adjustment, attributable to noncontrolling interest | 749 | |||||||
Foreign currency translation adjustment | 1,649 | |||||||
Deconsolidation of noncontrolling interest | (145,682) | (1,793) | (1,793) | (143,889) | ||||
Ending balance at Mar. 31, 2022 | 826,901 | 826,901 | $ 67 | (66,006) | 276,509 | 1,422 | 614,909 | |
Ending balance, noncontrolling interest at Mar. 31, 2022 | 0 | 0 | ||||||
Ending balance, including portion attributable to noncontrolling interest at Mar. 31, 2022 | 826,901 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income including noncontrolling interest through December 1, 2021 | 438,092 | |||||||
Beginning balance, including portion attributable to noncontrolling interest | 793,990 | |||||||
Beginning balance at Dec. 31, 2021 | 793,990 | $ 67 | (66,046) | 275,410 | 1,260 | 583,299 | ||
Beginning balance, noncontrolling interest at Dec. 31, 2021 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock options and release of restricted stock units (in shares) | 0 | |||||||
Exercise of common stock options and release of restricted stock units | 558 | 558 | 558 | |||||
Reissuance of treasury stock upon exercise of common stock options and release of RSUs | 0 | 0 | 40 | (40) | ||||
Withholding tax on restricted stock units | (7,732) | (7,732) | (7,732) | |||||
Share-based compensation | 8,273 | 8,273 | 8,273 | |||||
Net loss | 31,650 | 31,650 | 31,650 | |||||
Net gain (loss) attributable to noncontrolling interest | 0 | |||||||
Net income including noncontrolling interest | 32,786 | |||||||
Cumulative translation adjustment | 162 | 162 | ||||||
Foreign currency translation adjustment | 162 | |||||||
Ending balance at Mar. 31, 2022 | 826,901 | $ 826,901 | $ 67 | $ (66,006) | $ 276,509 | $ 1,422 | $ 614,909 | |
Ending balance, noncontrolling interest at Mar. 31, 2022 | 0 | $ 0 | ||||||
Ending balance, including portion attributable to noncontrolling interest at Mar. 31, 2022 | 826,901 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income including noncontrolling interest through December 1, 2021 | 31,650 | |||||||
Beginning balance, including portion attributable to noncontrolling interest | $ 826,901 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income including noncontrolling interest through December 1, 2021 | $ 438,092 | $ 36,274 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on deconsolidation of the JV Company | (399,093) | 0 |
Loss on changes of equity interest in the JV Company, net | 3,140 | 0 |
Deferred income tax on deconsolidation and changes of equity interest in the JV Company | 29,973 | 0 |
Depreciation and amortization | 34,263 | 39,434 |
Loss on equity investment | 1,136 | 0 |
Share-based compensation expense | 21,454 | 9,925 |
Deferred income taxes, net | 2,182 | 732 |
Loss on disposal of property and equipment | 57 | 40 |
Changes in operating assets and liabilities, net of effects of a divestiture | ||
Accounts receivable | (3,610) | (20,448) |
Inventories | (42,914) | (9,582) |
Other current and long-term assets | (10,078) | (2,297) |
Other payable, equity investee | 34,375 | 0 |
Accounts payable | 15,608 | (224) |
Income taxes payable | (1) | 1,097 |
Income taxes payable on deconsolidation and changes of equity interest in the JV Company | 3,490 | 0 |
Accrued and other liabilities | 65,122 | 29,573 |
Net cash provided by operating activities | 193,196 | 84,524 |
Cash flows from investing activities | ||
Proceeds from sale of equity interest in the JV Company | 26,347 | 0 |
Deconsolidation of cash and cash equivalents of the JV Company | (20,734) | 0 |
Purchases of property and equipment excluding the JV Company | (82,980) | (24,913) |
Purchases of property and equipment in JV Company | (15,026) | (15,628) |
Proceeds from sale of property and equipment | 9 | 10 |
Government grant related to equipment | 1,242 | 119 |
Net cash used in investing activities | (91,142) | (40,412) |
Cash flows from financing activities | ||
Withholding tax on restricted stock units | (8,354) | (6,153) |
Proceeds from exercise of stock options and ESPP | 3,282 | 3,326 |
Proceeds from borrowings | 59,262 | 42,858 |
Repayments of borrowings | (33,663) | (44,087) |
Principal payments on finance leases | (4,176) | (12,267) |
Net cash provided by (used in) financing activities | 16,351 | (16,323) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 152 | 3,982 |
Net increase in cash, cash equivalents and restricted cash | 118,557 | 31,771 |
Cash, cash equivalents and restricted cash at beginning of period | 204,813 | 162,704 |
Cash, cash equivalents and restricted cash at end of period | 323,370 | 194,475 |
Supplemental disclosures of non-cash investing and financing information: | ||
Property and equipment purchased but not yet paid | $ 25,565 | $ 16,912 |
The Company and Significant Acc
The Company and Significant Accounting Policies | Jan. 26, 2022 |
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 and portable computers, graphic cards, flat panel TVs, home appliances, 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, 2021. 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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022 or any other interim period. The consolidated balance sheet at June 30, 2021 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, 2021. Reclassification The Company has reclassified certain amounts previously reported in its financial statements to conform to the current presentation. These reclassifications did not have a material impact on our Condensed Consolidated Financial Statements. See Note 11. Joint Venture and Deconsolidation On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture, (the “JV Company”), for the purpose of constructing and operating a power semiconductor packaging, testing and 12-inch wafer fabrication facility (“Fab”) in the LiangJiang New Area of Chongqing, China (the “JV Transaction”). The Fab is being built in phases. As of December 1, 2021, the Company owned 50.9%, and the Chongqing Funds owned 49.1% of the equity interest in the JV Company. The Joint Venture was accounted under the provisions of the consolidation guidance since the Company had controlling financial interest until December 1, 2021. Effective December 1, 2021, the Company entered into a share transfer agreement (the “STA”) with a third-party investor (the “Investor”), pursuant to which the Company sold to the Investor approximately 2.1% of outstanding equity interest held by the Company in the JV Company for an aggregate purchase price of RMB 108 million or approximately $16.9 million (the “Transaction”). The Transaction was closed on December 2, 2021 (the “Closing Date”). As a result of the Transaction, as of the Closing Date, the Company’s equity interest in the JV Company decreased from 50.9% to 48.8%. Also, the Company’s right to designate directors on the board of JV Company was reduced to three (3) out of seven (7) directors from four (4) directors prior to the Transaction. As a result of the Transaction, AOS no longer had a controlling financial interest in the JV Company under generally accepted accounting principles. Loss of control is deemed to have occurred when, among other things, a parent company owns less than a majority of the outstanding equity interest in the subsidiary, lacks a controlling financial interest in the subsidiary and, is unable to unilaterally control the subsidiary through other means such as having, or the ability to obtain or represent, a majority of the subsidiary’s Board of Directors. Because of these factors, as of December 2, 2021, the Company ceased having control over the JV Company. Therefore, the Company deconsolidated the financial statements of the JV Company as of that date. Subsequently, the Company has accounted for its investment in the JV Company using the equity method of accounting. On December 24, 2021, the Company entered into a share transfer agreement with another third-party investor, pursuant to which the Company sold to this investor 1.1% of outstanding equity interest held by the Company in the JV Company for an aggregate purchase price of RMB 60 million, or approximately $9.4 million. In addition, the JV Company adopted an employee equity incentive plan and issued an equity interest equivalent to 3.99% of the JV Company in exchange for cash. As a result, the Company owned 45.8% of the equity interest in the JV Company as of December 31, 2021. On January 26, 2022, the JV Company completed a financing transaction pursuant to a corporate financing agreement (the “Financing Agreement”) between the JV Company and certain third-party investors (the “New Investors”). Under the Financing Agreement, the New Investors purchased newly issued equity interest of JV for a total purchase price of RMB 509 million (or approximately $80 million based on the currency exchange rate as of January 26, 2022) (the “Investment”). Immediately following the closing of the Investment, the percentage of outstanding JV equity interest beneficially owned by the Company was further reduced to 42.2%. Certain Significant Risks and Uncertainties Related to Outbreak of Coronavirus Disease 2019 (“COVID-19”) The COVID-19 pandemic has had and continues to have a negative impact on business and economic activities across the globe. As a result of the COVID-19 pandemic and the global economic downturn and changing consumer behaviors due to various restrictions imposed by governments, the Company has experienced shifting market trends, including an increasing demand in the markets for notebooks, PCs and gaming devices and decreasing demand for mobile phone and industrial products, as more consumers are staying at and working from home. While the Company has recently benefited from the increasing demand of consumer electronics and PC related products, there is no guarantee that this trend will continue, and such increasing demand may discontinue or decline as government authorities relax and terminate COVID-19 related restrictions and consumer behaviors change. Furthermore, as the COVID-19 pandemic continues and global economic downturn and high unemployment persists, consumer spending may slow down substantially, in which case the Company may experience a significant decline of customer orders for its products, including those designed for PC-related applications, and such decline will adversely affect its financial conditions and results of operations. The full extent of the future impact of the COVID-19 pandemic on the Company’s operational and financial performance is uncertain and will depend on many factors outside the Company’s control, including, without limitation, the timing, extent, trajectory and duration of the pandemic; the availability, distribution and effectiveness of vaccines; the spread of new variants of COVID-19; the continued or renewed imposition of protective public safety measures and government mandates; the continuing disruption of global supply chain affecting the semiconductor industry; and the impact of the pandemic on the global economy and demand for consumer products. In April 2022, the operations of our two packaging and testing facilities in Shanghai, China were suspended due to a strict lockdown of the city imposed by the local government in response to surging COVID cases. Our facilities in Shanghai were required to shut down and production was halted beginning in mid-April. Transportation suspension in and out of Shanghai also interrupted the shipping of raw materials and finished parts to and from our facilities. We have been working closely with factory management to separate non-infected employees from infected employees, perform regular COVID-19 testing, and secure food, water, and other necessary supplies to support employees who have been affected. In addition, we have been working with local authorities to obtain permission to reopen the facilities, and as of the date of this Form 10-Q, we have received permission to reopen our facilities partially under a “closed-loop” arrangement. Under this arrangement, some of our employees are allowed to live and work on the premises. However, the pace at which we can resume full operations remains challenging due to difficulties in bringing back our workforce to the facilities, procuring certain raw materials and resolving logistical bottlenecks. Currently we intend to gradually ramp up production at these facilities in May and return to normal operation in June 2022, assuming no additional restriction and lockdown are imposed by the government. Furthermore, while we seek to secure alternative sources of packaging capacity from third-party providers to mitigate the loss of in-house packaging capacity, there is no guarantee that such sources are available. Even if alternative sources are available, it will be difficult to complete the transition to a new supplier efficiently and timely, and we currently do not expect to secure sufficient third-party sources to substitute or replace fully our in-house packaging and testing capacity. The suspension of our Shanghai facilities, and the subsequent partial resumption of production, reduces our ability to complete orders from our customers in a timely manner, or at all, which is expected to adversely affect our revenue and results of operation for the three months ending June 30, 2022. It is uncertain how long the Shanghai government intends to impose a shutdown, and even when lifted, the government may reimpose strict zero-positive-case requirements and lockdown. It is not possible to predict at this time the ultimate duration of these restrictions or the impact on financial results in the near-term. 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 the economic implications of the COVID-19 pandemic. Leases 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. 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. The Company elected to combine its lease and non-lease components as a single lease component for all asset classes. 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 product revenue at a point in time when product is shipped to the customer, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company presents revenue net of sales taxes and any similar assessments. Our standard payment terms range from 30 to 60 days. The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company’s products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the Condensed Consolidated Balance Sheets. The Company’s performance obligations relate to contracts with a duration of less than one year. The Company elected to apply the practical expedient provided in ASC 606, “Revenue from Contracts with Customers”. Therefore, the Company is not required to disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The Company recognizes the incremental direct costs of obtaining a contract, which consist of sales commissions, when control over the products they relate to transfers to the customer. Applying the practical expedient, the Company recognizes commissions as expense when incurred, as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. Packaging and testing services revenue is recognized at a point in time upon shipment of serviced products to the customer. Share-based Compensation Expense The Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-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 over the requisite service period of the award, which generally equals the vesting period. The Employee Share Purchase Plan (the “ESPP”) is accounted for at fair value on the date of grant using the Black-Scholes option valuation model. Restricted Cash 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. In addition, as a condition of certain loan agreement, the Company was required to keep a compensating balance at the issuing bank. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s Condensed Consolidated Balance Sheets. As of March 31, 2022 and June 30, 2021, the amount of restricted cash was $0.2 million and $2.4 million, respectively. Equity method investment The Company uses the equity method of accounting when it has the ability to exercise significant influence, but not control, as determined in accordance with general accepted accounting principles, over the operating and financial policies of the investee. Effective December 2, 2021, the Company reduced its equity interest in the JV Company and experienced a loss of control of the JV Company. As a result, beginning December 2, 2021, the Company records its investment under equity method of accounting. Since the Company is unable to obtain accurate financial information from the JV Company in a timely manner, the Company records its share of earnings or losses of such affiliate on a one quarter lag. Therefore, the Company’s share of losses of the JV Company for the period from December 2, 2021 to December 31, 2021 was recorded in the Company’s Consolidated Statement of Operations for the three and nine months ended March 31, 2022. The Company discloses and recognizes intervening events at the JV Company in the lag period that could materially affect our consolidated financial statements, if applicable. The Company records its interest in the net earnings of its equity method investees, along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within earnings or loss from equity interests in the Consolidated Statements of Income. Profits or losses related to intra-entity sales with its equity method investees are eliminated until realized by the investor and investee. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to them. Equity method goodwill is not amortized or tested for impairment; instead the equity method investment is tested for impairment. The Company reviews for impairment whenever factors indicate that the carrying amount of the investment might not be recoverable. In such a case, the decrease in value is recognized in the period the impairment occurs in the Condensed Consolidated Statements of Income. Fair Value of Financial Instruments The fair value of cash equivalents is 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, credit risk and terms of the debts. Government Grants The Company occasionally receives government grants that provide financial assistance for certain eligible expenditures in China. These grants include reimbursements on interest expense on bank borrowings, payroll tax credits, credit for property, plant and equipment in a particular geographical location, employment 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, a reduction of the cost of the related asset, or as other income depending upon the nature of the grant. As a result of such grants, during the three and nine months ended March 31, 2022, the Company reduced interest expense by nil and $0.9 million, property, plant and equipment by nil and $1.2 million, and operating expenses by $0.0 million and $0.2 million, respectively. During the three and the nine months ended March 31, 2021, the Company reduced interest expense by $0.7 million and $2.2 million, property, plant and equipment by nil and $0.1 million and operating expenses by $0.1 million and $3.7 million, respectively. 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 and June 2020 quarters. 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 June 30, 2020. Some of the more significant assumptions used in the estimated future cash flows involve net sales, cost of goods sold, operating expenses, working capital, capital expenditures, income tax rates, long-term growth rates that appropriately reflect the risks inherent in the future cash flow stream and terminal value. 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. Since this recoverability test was performed during fiscal 2020, circumstances have improved such that there are no indicators that the Company’s long-lived assets may not be recoverable. Comprehensive Income Comprehensive income 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 consists of cumulative foreign currency translation adjustments. Total comprehensive income is presented in the Condensed Consolidated Statements of Comprehensive Income. Recent Accounting Pronouncements Recently Issued Accounting Standards not yet adopted In November 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This ASU requires business entities to make annual disclosures about transactions with a government they account for by analogizing to a grant or contribution accounting model under ASC 958-605. The ASU is effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. 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 August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the ASU eliminated the need for the Company to assess whether a contract on the entity’s own equity (1) permits settlement in unregistered shares, (2) whether counterparty rights rank higher than shareholder’s rights, and (3) whether collateral is required. In addition, the ASU requires incremental disclosure related to contracts on the entity’s own equity and clarifies the treatment of certain financial instruments accounted for under this ASU on earnings per share. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2021, 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. Recently Adopted Accounting Standards In January 2020, the FASB issued 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. The adoption of ASU 2020-01 had no material impact on the Company's Consolidated Financial Statements. In December 2019, the FASB issued 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 Company adopted ASU 2019-12 as of July 1, 2021. ASU 2019-12 had no material impact on the Company's Consolidated Financial Statements. |
Equity Method Investment in Equ
Equity Method Investment in Equity Investee | 9 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Equity Method Investment in Equity Investee | Equity Method Investment in Equity Investee On December 1, 2021 (the “Effective Date”), Alpha & Omega Semiconductor (Shanghai) Ltd. (“AOS SH”) and Agape Package Manufacturing (Shanghai) Limited (“APM SH” and, together with AOS SH, the “Sellers”), each a wholly-owned subsidiary of the Company, entered into a share transfer agreement ("STA") with a third-party investor to sell a portion of the Company's equity interest in the JV Company which consists of a power semiconductor packaging, testing and 12-inch wafer fabrication facility in Chongqing, China (the “Transaction”). The Transaction closed on December 2, 2021 (the “Closing Date”), which reduced the Company’s equity interest in the JV Company from 50.9% to 48.8%. Also, the Company’s right to designate directors on the board of JV Company was reduced to three (3) out of seven (7) directors, from four (4) directors prior to the Transaction. As a result of the Transaction and other factors, the Company no longer has a controlling financial interest in the JV Company and has determined that the JV Company was deconsolidated from the Company’s Consolidated Financial Statements effective as of the Closing Date. In connection with the deconsolidation and in accordance with ASC 810-10-40-5, the Company recorded a gain on deconsolidation of nil and $399.1 million during the three and nine months ended March 31, 2022 in the Condensed Consolidated Statements of Income. The gain on deconsolidation of the JV Company was calculated as follows: (in thousands) Cash received for sales of shares in the JV Company $ 16,924 Fair value of retained equity method investment 393,124 Carrying amount of non-controlling interest 143,889 Cumulative translation adjustment removal 1,793 Carrying amount of net assets of the JV Company at December 1, 2021 (156,637) Gain on deconsolidation of the JV Company $ 399,093 The Company retained significant influence over the operating and financial policies of the JV Company and measured the fair value of the retained investment based on their share of the fair value of the JV Company, which was calculated using the market approach based on the Transaction. On December 24, 2021, the Company entered into a share transfer agreement with another third-party investor, pursuant to which the Company sold to this investor 1.1% of outstanding equity interest held by the Company in the JV Company. In addition, the JV Company adopted an employee equity incentive plan and issued an equity interest equivalent to 3.99% of the JV Company in exchange to cash. As a result of these two transactions, the Company owned 45.8% of the equity interest in the JV Company as of December 31, 2021. On January 26, 2022, the JV Company completed a financing transaction pursuant to a corporate investment agreement (the “Investment Agreement”) between the JV and certain third-party investors (the “New Investors”). Under the Investment Agreement, the New Investors purchased newly issued equity interest of JV, representing approximately 7.82% of post-transaction outstanding equity interests of the JV, for a total purchase price of RMB 509 million (or approximately USD 80 million based on the currency exchange rate as of January 26, 2022) (the “Investment”). Following the closing of the Investment and as of March 31, 2022, the percentage of outstanding JV equity interest beneficially owned by the Company was reduced to 42.2%. The Company recorded the gain of $4.5 million on changes on equity interest of the JV Company during the three months ended March 31, 2022 and the loss of $3.1 million on changes on equity interest of the JV Company during the nine months of March 31, 2022. The net loss associated with these sales of JV Company equity interest held by the Company were recorded in the nine months ended March 31, 2022 as follows: (in thousands) Gain on 1.1% equity interest sold $ 475 Loss on diluted equity interest from issuance of shares under the employee equity incentive plan (8,116) Gain on 7.82% equity interest sold 4,501 Loss on changes on equity interest of the JV Company, net $ (3,140) The Company accounts for its investment in the JV Company as an equity method investment and reports its equity in earnings or loss of the JV Company on a three-month lag due to an inability to timely obtain financial information of the JV Company. During the three and nine months ended March 31, 2022, the Company recorded $1.1 million of its equity in loss of the JV Company, using lag reporting. |
Related Party Transactions
Related Party Transactions | Mar. 31, 2022 |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsAs of March 31, 2022, the Company owned 42.2% equity interest in the JV Company, which, by definition, is a related party to the Company. The JV Company supplies 12-inch wafers and provides assembly and testing services to AOS. AOS also sells 8-inch wafers to the JV Company for further assembly and testing services. Due to the right of offset of receivables and payables with the JV Company, as of March 31, 2022, AOS recorded the net amount of $15.2 million presented as other payable, equity investee, in the Condensed Consolidated Balance Sheet. Since the December 2, 2021 deconsolidation of the JV Company, the purchases by AOS for the three and nine months ended March 31, 2022 were $45.8 million and $61.4 million respectively, and the sales by AOS for the three and nine months ended March 31, 2022 were $14.2 million and $18.4 million, respectively. |
Net Income Per Common Share Att
Net Income Per Common Share Attributable to Alpha and Omega Semiconductor Limited | 9 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income Per Common Share Attributable to Alpha and Omega Semiconductor Limited The following table presents the calculation of basic and diluted net income per share attributable to common shareholders: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 (in thousands, except per share data) Numerator: Net income attributable to Alpha and Omega Semiconductor Limited $ 31,650 $ 16,100 $ 438,072 $ 38,577 Denominator: Basic: Weighted average number of common shares used to compute basic net income per share 26,829 25,882 26,596 25,631 Diluted: Weighted average number of common shares used to compute basic net income per share 26,829 25,882 26,596 25,631 Effect of potentially dilutive securities: Stock options, RSUs and ESPP shares 1,594 1,834 1,520 1,497 Weighted average number of common shares used to compute diluted net income per share 28,423 27,716 28,116 27,128 Net income per share attributable to Alpha and Omega Semiconductor Limited: Basic $ 1.18 $ 0.62 $ 16.47 $ 1.51 Diluted $ 1.11 $ 0.58 $ 15.58 $ 1.42 The following potential dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 (in thousands) (in thousands) Employee stock options and RSUs 2 107 171 80 ESPP 19 — 27 89 Total potential dilutive securities 21 107 198 169 |
Concentration of Credit Risk an
Concentration of Credit Risk and Significant Customers | 9 Months Ended |
Mar. 31, 2022 | |
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 bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available. Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts: Three Months Ended March 31, Nine Months Ended March 31, Percentage of revenue 2022 2021 2022 2021 Customer A 24.2 % 30.2 % 24.8 % 29.1 % Customer B 38.8 % 35.2 % 38.7 % 34.9 % March 31, June 30, Percentage of accounts receivable Customer A 21.2 % 12.4 % Customer B 20.4 % 22.1 % Customer C 13.7 % 21.9 % Customer D 12.8 % * Customer E 15.0 % * *Less than 10% |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components The Company’s audited consolidated balance sheet at June 30, 2021, as reported, included the JV Company’s assets and liabilities, after intercompany eliminations. However, the JV Company's assets and liabilities were not included in the Company’s unaudited Condensed Consolidated Balance Sheet at March 31, 2022 due to the deconsolidation of the JV Company on December 2, 2021 as discussed in more detail in Note 1 above. Accounts receivable, net: March 31, June 30, (in thousands) Accounts receivable $ 52,362 $ 48,234 Less: Allowance for price adjustments (13,125) (12,415) Less: Allowance for doubtful accounts (30) (30) Accounts receivable, net $ 39,207 $ 35,789 Inventories: March 31, June 30, (in thousands) Raw materials $ 54,435 $ 68,900 Work in-process 67,132 68,824 Finished goods 21,971 16,569 $ 143,538 $ 154,293 Other current assets: March 31, June 30, (in thousands) VAT receivable $ 550 $ 1,539 Other prepaid expenses 4,098 1,465 Prepaid insurance 1,291 2,615 Prepaid maintenance 774 1,670 Prepayment to supplier 1,295 2,540 Prepaid income tax 3,052 2,221 Interest receivable — 2,207 Customs deposit — 270 Other receivables 638 68 $ 11,698 $ 14,595 Property, plant and equipment, net: March 31, June 30, (in thousands) Land $ 4,877 $ 4,877 Building 15,867 71,454 Manufacturing machinery and equipment 266,135 515,320 Equipment and tooling 26,113 27,017 Computer equipment and software 35,199 41,518 Office furniture and equipment 2,778 3,814 Leasehold improvements 35,226 74,733 Land use rights — 9,319 386,195 748,052 Less: accumulated depreciation (228,437) (348,749) 157,758 399,303 Equipment and construction in progress 88,012 37,674 Property, plant and equipment, net $ 245,770 $ 436,977 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 (8,834) (6,314) 10,621 13,141 Goodwill 269 269 Intangible assets, net $ 10,890 $ 13,410 Estimated future minimum amortization expense of intangible assets is as follows (in thousands): Year ending June 30, 2022 (Remaining) $ 840 2023 3,286 2024 3,249 2025 3,246 $ 10,621 Other long-term assets: March 31, June 30, (in thousands) Prepayments for property and equipment $ 18,500 $ 14,882 Investment in a privately held company 100 100 Customs deposit 1,824 1,120 Deposit with supplier 6,396 — Other long-term deposits 20 927 Office leases deposits 964 1,100 Other 1,661 740 $ 29,465 $ 18,869 Accrued liabilities: March 31, June 30, (in thousands) Accrued compensation and benefits $ 25,550 $ 32,756 Warranty accrual 2,483 2,795 Stock rotation accrual 4,207 3,917 Accrued professional fees 3,009 3,017 Accrued inventory 1,150 1,138 Accrued facilities related expenses 2,689 2,536 Accrued property, plant and equipment 8,664 8,688 Other accrued expenses 5,864 6,793 Customer deposit 35,111 7,139 ESPP payable 2,606 715 $ 91,333 $ 69,494 The activities in the warranty accrual, included in accrued liabilities, are as follows: Nine Months Ended March 31, 2022 2021 (in thousands) Beginning balance $ 2,795 $ 709 Additions 949 338 Utilization (1,261) (211) Ending balance $ 2,483 $ 836 The activities in the stock rotation accrual, included in accrued liabilities, are as follows: Nine Months Ended March 31, 2022 2021 (in thousands) Beginning balance $ 3,917 $ 3,358 Additions 3,030 4,498 Utilization (2,740) (3,771) Ending balance $ 4,207 $ 4,085 Other long-term liabilities: March 31, June 30, (in thousands) Deferred payroll taxes $ — $ 1,219 Customer deposits 72,384 42,000 Other — 904 Other long-term liabilities $ 72,384 $ 44,123 Customer deposits are payments received from customers for securing future product shipments. As of March 31, 2022, $62.4 million were from Customer A and Customer B, and $10.0 million were from other customers. As of June 30, 2021, $42.0 million were from Customer A and Customer B. |
Bank Borrowing Bank Borrowing
Bank Borrowing Bank Borrowing | 9 Months Ended |
Mar. 31, 2022 | |
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 is to provide short-term borrowings. The Company could borrow up to approximately 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. In September 2021, this line of credit was renewed with maximum borrowings up to RMB 140.0 million with the same terms and a maturity date of September 18, 2022. During the three months ended December 31, 2021, the Company borrowed RMB 11.0 million, or $1.7 million, at an interest rate of 3.85% per annum, with principal due on November 18, 2022. As of March 31, 2022, the total outstanding balance of this loan was $1.7 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. 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. The RMB 72.0 million consists of RMB 27.0 million for trade borrowings with a maturity date of December 31, 2021, and RMB 45.0 million for working capital borrowings or trade borrowings with a maturity date of September 13, 2022. During the three months ended December 31, 2021, the Company borrowed RMB 5.0 million, or $0.8 million, at an interest rate of 3.7% per annum, with principal due on September 12, 2022. As of March 31, 2022, the total outstanding balance of this loan was $0.6 million . 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 London Interbank Offered Rate (“LIBOR”) plus 1.75% per annum. 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. This agreement, with certain financial covenants required, has no expiration date. On August 11, 2021, the Borrower signed an agreement with HSBC to decrease the borrowing maximum amount to $8.0 million with certain financial covenants required. Other terms remain the same. As of March 31, 2022, the Borrower was in compliance with these covenants. As of March 31, 2022, there was no outstanding balance and the Company had unused credit of approximately $8.0 million. Long-term debt On August 18, 2021, Jireh Semiconductor Incorporated (“Jireh”) entered into a term loan agreement with a financial institution (the "Bank") in an amount up to $45.0 million for the purpose of expanding and upgrading the Company’s fabrication facility located in Oregon. The obligation under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company. The agreement has a 5.5 year term and matures on February 16, 2027. Jireh is required to make consecutive quarterly payments of principal and interest. The loan accrues interest based on adjusted LIBOR plus the applicable margin based on the outstanding balance of the loan. This agreement contains customary restrictive covenants and includes certain financial covenants that the Company is required to maintain. Jireh drew down $45.0 million on February 16, 2022. As of March 31, 2022, Jireh was in compliance with these covenants and the outstanding balance of this loan was $45.0 million . On May 1, 2018, Jireh entered into a loan agreement with 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. In August 2021, Jireh signed an amendment of this loan with the Bank to modify the financial covenants requirement to align with the new term loan agreement entered into on August 18, 2021 discussed above. The amendment was accounted for as a debt modification and no gain or loss was recognized. The Company was in compliance with these covenants as of March 31, 2022. As of March 31, 2022, the outstanding balance of the term loa n was $14.4 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 is 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. In August 2021, Jireh signed an amendment of this loan with the Bank to modify the financial covenants requirement to align with the new term loan agreement entered into on August 18, 2021, discussed above. The amendment was accounted for as a debt modification and no gain or loss was recognized. The Company was in compliance with these covenants as of March 31, 2022. As of March 31, 2022, the outstanding balance of the term loan wa s $3.7 million . Maturities of short-term debt and long-term debt were as follows (in thousands): Year ending June 30, 2022 (Remaining) $ 2,085 2023 25,067 2024 9,000 2025 9,000 2026 9,000 Thereafter 11,250 Total principal 65,402 Less: debt issuance costs (183) Total principal, less debt issuance costs $ 65,219 Short-term Debt Long-term Debt Total Principal amount $ 11,403 $ 53,999 $ 65,402 Less: debt issuance costs (71) (112) (183) Total debt, less debt issuance costs $ 11,332 $ 53,887 $ 65,219 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases 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 Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed 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 $4.8 million of a machinery lease financing with a vendor. In addition, the finance lease 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 was not included in the Company’s unaudited Condensed Consolidated Balance Sheet at March 31, 2022 due to the deconsolidation of the JV Company on December 2, 2021. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less. The Company’s unaudited Condensed Consolidated Statements of Income for the three and nine months ended March 31, 2022 include the JV Company's results for the period through December 1, 2021, the day immediately preceding the deconsolidation. The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands): Nine Months Ended March 31, 2022 2021 Operating leases: Fixed rent expense $ 4,955 $ 5,089 Variable rent expense 741 599 Finance lease: Amortization of equipment 787 1,682 Interest 692 1,699 Short-term leases Short-term lease expenses 144 164 Total lease expenses $ 7,319 $ 9,233 Supplemental balance sheets information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): March 31, June 30, Operating Leases : ROU assets associated with operating leases $ 24,971 $ 34,660 Finance Lease: Property, plant and equipment, gross $ 4,831 $ 114,404 Accumulated depreciation (15) (96,470) Property, plant and equipment, net $ 4,816 $ 17,934 Weighted average remaining lease term (in years) Operating leases 7.48 8.44 Finance lease 4.96 1.72 Weighted average discount rate Operating leases 4.24 % 4.67 % Finance lease 4.50 % 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, 2022 2021 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,965 $ 4,721 Operating cash flows from finance lease $ 421 $ 1,699 Financing cash flows from finance lease $ 4,176 $ 12,267 Non-cash investing and financing information: Operating lease right-of-use assets obtained in exchange for lease obligations $ 5,901 $ 2,843 Future minimum lease payments are as follows as of March 31, 2022 (in thousands): Year ending June 30, Operating Leases Finance Leases The remainder of fiscal 2022 $ 1,550 $ 163 2023 5,382 1,074 2024 4,123 1,083 2025 3,254 1,083 2026 3,207 1,083 Thereafter 13,658 754 Total minimum lease payments 31,174 5,240 Less amount representing interest (4,751) (544) Total lease liabilities $ 26,423 $ 4,696 |
Leases | Leases 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 Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed 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 $4.8 million of a machinery lease financing with a vendor. In addition, the finance lease 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 was not included in the Company’s unaudited Condensed Consolidated Balance Sheet at March 31, 2022 due to the deconsolidation of the JV Company on December 2, 2021. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less. The Company’s unaudited Condensed Consolidated Statements of Income for the three and nine months ended March 31, 2022 include the JV Company's results for the period through December 1, 2021, the day immediately preceding the deconsolidation. The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands): Nine Months Ended March 31, 2022 2021 Operating leases: Fixed rent expense $ 4,955 $ 5,089 Variable rent expense 741 599 Finance lease: Amortization of equipment 787 1,682 Interest 692 1,699 Short-term leases Short-term lease expenses 144 164 Total lease expenses $ 7,319 $ 9,233 Supplemental balance sheets information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): March 31, June 30, Operating Leases : ROU assets associated with operating leases $ 24,971 $ 34,660 Finance Lease: Property, plant and equipment, gross $ 4,831 $ 114,404 Accumulated depreciation (15) (96,470) Property, plant and equipment, net $ 4,816 $ 17,934 Weighted average remaining lease term (in years) Operating leases 7.48 8.44 Finance lease 4.96 1.72 Weighted average discount rate Operating leases 4.24 % 4.67 % Finance lease 4.50 % 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, 2022 2021 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,965 $ 4,721 Operating cash flows from finance lease $ 421 $ 1,699 Financing cash flows from finance lease $ 4,176 $ 12,267 Non-cash investing and financing information: Operating lease right-of-use assets obtained in exchange for lease obligations $ 5,901 $ 2,843 Future minimum lease payments are as follows as of March 31, 2022 (in thousands): Year ending June 30, Operating Leases Finance Leases The remainder of fiscal 2022 $ 1,550 $ 163 2023 5,382 1,074 2024 4,123 1,083 2025 3,254 1,083 2026 3,207 1,083 Thereafter 13,658 754 Total minimum lease payments 31,174 5,240 Less amount representing interest (4,751) (544) Total lease liabilities $ 26,423 $ 4,696 |
Shareholders' Equity and Share-
Shareholders' Equity and Share-based Compensation | 9 Months Ended |
Mar. 31, 2022 | |
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 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 share-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, 2022, the Company did not repurchase any shares pursuant to the Repurchase Program. Since the inception of the program, the Company repurchased an aggregate of 6,784,648 shares for a total cost of $67.3 million, at an average price of $9.92 per share, excluding fees and related expenses. No repurchased shares have been retired. Of the 6,784,648 repurchased shares, 166,645 shares with a weighted average repurchase price of $10.07 per share, were reissued at an average price of $5.02 per share pursuant to option exercises and vested restricted share units (“RSU”). As of March 31, 2022, approximately $13.4 million remained available under the Repurchase Program. Time-based Restric ted Stock Units ( “ TRSU ” ) The following table summarizes the Company's TRSU activities for the nine months ended March 31, 2022: Number of Restricted Stock Weighted Average Weighted Average Aggregate Intrinsic Value Nonvested at June 30, 2021 1,053,524 $ 21.60 1.73 $ 32,016,594 Granted 563,681 $ 46.10 Vested (380,029) $ 20.01 Forfeited (46,251) $ 23.14 Nonvested at March 31, 2022 1,190,925 $ 33.64 1.92 $ 65,084,051 Market-based Restricted Stock Units ( “ MSU ” ) In December 2021, the Company granted 1.0 million market-based restricted stock units ("MSUs") to its 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, 2022 to December 31, 2024 as well as the recipients remaining in continuous service with the Company through such period. The MSU vests in four equal annual installments after the end of performance period. The Company estimated the grant date fair values of its MSU with derived service periods of 4.1 to 7.1 years using a Monte-Carlo simulation model with the following assumptions: Risk-free interest rate of 1.0%, expected term of 3.1 years, expected volatility of 62.8% and dividend yield of 0%. The Company recorded approximately $2.0 million and $2.5 million of expenses for these MSUs during the three and nine months ended March 31, 2022, respectively. During the quarter ended September 30, 2018, the Company granted 1.3 million 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 the performance period. The Company estimated the grant date fair values of its MSUs using a Monte-Carlo simulation model. On August 31, 2020, the Compensation Committee of the Board approved a modification of the terms of MSU to (i) extend the performance period through December 31, 2022 and (ii) change the commencement date for the four-year time-based service period to January 1, 2023. The fair value of these MSUs was recalculated to reflect the change as of August 31, 2020 and the unrecognized compensation amount was adjusted to reflect the increase in fair value. The Company recorded approximatel y $0.4 million and $1.2 million of expenses for MSUs during the three and nine months ended March 31, 2022, respectively, and approximately $0.3 million and $0.9 million during the three and the nine months ended March 31, 2021, respectively. Performance-based Restricted Stock Units (“PRSUs”) In March each year since year 2017, the Company granted 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 $1.0 million and $3.0 million of expens e for these PRSUs during the three and nine months ended March 31, 2022, respectively and approximatel y $0.5 million and $1.3 million during the three and nine months ended March 31, 2021. During the three months ended June 30, 2019, the Company announced an incentive program. Under this program, each participant’s award is denominated in stock and subject to achievement of certain objective goals within certain timelines. In June 2020, the Company believed it was most likely that predetermined goal measures would be met. Therefore, the Company reported such expenses in the other current liabilities line on the Condensed Consolidated Balance Sheets as the amount of bonus is to be settled in variable number of RSU’s at the completion of the objective goals. Such non-cash compensation expense was recorded as part of share-based compensation exp ense in the Condensed Consolidated Statements of Income. As of March 31, 2022 and June 30, 2021, the Company recorde d nil an d $0.1 million such expenses in the other current liabilities, respectively. The Company recorded nil and $0.3 million such non-cash compensation expense during the three and nine months ended March 31, 2022 , respectively, and $0.8 million and $2.2 million during the three and nine months ended March 31, 2021, respectively. As of March 31, 2022, the Company granted RSUs valued at $4.0 million to p articipants, which were fully vested due to achievement of certain objective measures. The following table summarizes the Company’s PRSUs activities for the nine months ended March 31, 2022: Number of Performance-based Restricted Stock Weighted Average Weighted Average Aggregate Intrinsic Value Nonvested at June 30, 2021 353,824 $ 22.69 1.74 $ 10,752,711 Granted 194,000 $ 48.65 Vested (151,199) $ 19.44 Forfeited (1,000) $ 16.22 Nonvested at March 31, 2022 395,625 $ 36.68 2.11 $ 21,620,906 Stock Options The Company did not grant any stock options during the three and nine months ended March 31, 2022 and 2021. The following table summarizes the Company's stock option activities for the nine months ended March 31, 2022: Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Aggregate Shares Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2021 487,875 $ 7.99 2.32 $ 10,928,653 Exercised (93,000) $ 9.24 Outstanding at March 31, 2022 394,875 $ 7.70 1.78 $ 18,541,050 Options vested and expected to vest 394,875 $ 7.70 1.78 $ 18,541,050 Exercisable at March 31, 2022 394,875 $ 7.70 1.78 $ 18,541,050 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 End March 31, 2022 Volatility rate 66.4% Risk-free interest rate 0.3% 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 Income for the periods presented was as follows: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 (in thousands) (in thousands) Cost of goods sold $ 1,282 $ 427 $ 3,560 $ 1,195 Research and development 1,814 1,316 4,769 3,639 Selling, general and administrative 5,177 2,082 13,125 5,091 $ 8,273 $ 3,825 $ 21,454 $ 9,925 As of March 31, 2022, total unrecognized compensation cost under the Company's equity plans was $86.2 million, which is expected to be recognized over a weighted-average period of 3.5 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized income tax expense of approximately $2.9 million and $1.0 million for the three months ended March 31, 2022 and 2021, respectively. The income tax expense of $2.9 million for the three months ended March 31, 2022 included a $0.7 million discrete tax expense related to the Company’s $4.5 million of gain related to the revaluation of the Company’s equity interest in a joint venture. The income tax expense of $1.0 million for the three months ended March 31, 2021 included immaterial discrete tax. Excluding the $4.5 million revaluation gain and the $0.7 million of discrete income tax items, the effective tax rate for the three months ended March 31, 2022 and 2021 was 7.4% and 6.3%, respectively. The changes in the tax expense and effective tax rate between the periods resulted primarily from the Company reporting pretax book income of $34.5 million ($30.0 million of pretax book income excluding the $4.5 million of gain related to the revaluation of the Company’s equity interest in a joint venture) for the three months ended March 31, 2022 as compared to a pretax book income of $16.0 million for the three months ended March 31, 2021 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 expense of approximately $38.3 million and $2.7 million for the nine months ended March 31, 2022 and 2021, respectively. The income tax expense of $38.3 million for the nine months ended March 31, 2022 included a $33.5 million discrete tax expense related to the Company’s $396.0 million of income from the sale of equity interest in a joint venture and the related deconsolidation gain as the Company switches from the consolidation method of accounting to the equity method of accounting related to this investment and no longer asserts permanent reinvestment related to the Company’s investment in the joint venture as well as $0.1 million of other discrete income tax items. The income tax expense of $2.7 million for the nine months ended March 31, 2021 included a $0.04 million discrete tax benefit. Excluding the discrete income tax items ($396.0 million of income from the sale of equity interest in a joint venture and the related deconsolidation gain as well as other discrete items), the effective tax rate for the nine months ended March 31, 2022 and 2021 was 6.0% and 7.0%, respectively. The changes in the tax expense and effective tax rate between the periods resulted primarily from the Company reporting pretax book income of $476.4 million ($80.4 million of pretax book income excluding the $396.0 million of income from the sale of equity interest in a joint venture and the related deconsolidation gain) for the nine months ended March 31, 2022 as compared to a pretax book income of $39.0 million for the nine months ended March 31, 2021 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 2021 remain open to examination by U.S. federal and state tax authorities. The tax years 2013 to 2021 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, 2022, the gross amount of unrecognized tax benefits was approximately $7.8 million, of which $4.8 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. “U.S. Consolidated Appropriations Act, 2021” (“CAA 2021”), Enacted December 27, 2020 On December 27, 2020, the United States enacted the Consolidated Appropriations Act, 2021, which made changes to existing U.S. tax laws. There was no material impact of the tax law changes included in the Consolidated Appropriations Act, 2021 to the Company. “The American Rescue Plan Act of 2021”, Enacted March 11, 2021 On March 11, 2021, the United States enacted the American Rescue Plan Act of 2021, which made changes to existing U.S. tax laws. There was no material impact of the tax law changes included in the American Rescue Plan Act of 2021 to the Company. 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. The petition was subsequently denied by the Ninth Circuit. Altera appealed the case to the U.S. Supreme Court in February 2020, but the U.S. Supreme Court declined to hear the case in June 2020, leaving intact the U.S. Court of Appeals for the Ninth Circuit’s decision. AOS has not recorded any benefit related to the Altera Corporation Tax Court decision in any period through March 2022. The Company will continue to monitor ongoing developments and potential impact to its financial statements |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Mar. 31, 2022 | |
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, 2022 2021 2022 2021 (in thousands) (in thousands) Hong Kong $ 164,555 $ 139,167 $ 472,399 $ 396,879 China 31,883 28,110 91,958 74,250 South Korea 2,745 473 8,862 4,069 United States 3,534 1,088 9,004 3,683 Other countries 522 374 1,370 712 $ 203,239 $ 169,212 $ 583,593 $ 479,593 During the three months ended March 31, 2022, the Company corrected an immaterial error to reduce revenues in Hong Kong by $0.5 million, and to increase the revenues in China and South Korea by $0.1 million and $0.4 million, respectively, for the three months ended March 31, 2021. During the nine months ended March 31, 2022, the Company corrected an immaterial error to reduce revenues in Hong Kong by $3.9 million, as well as to increase the revenues in China and South Korea by $0.2 million and $3.7 million, respectively, for the nine months ended March 31, 2021. The following is a summary of revenue by product type: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 (in thousands) (in thousands) Power discrete $ 140,572 $ 122,615 $ 406,235 $ 355,487 Power IC 60,359 43,385 167,782 115,224 Packaging and testing services 2,308 3,212 9,576 8,882 $ 203,239 $ 169,212 $ 583,593 $ 479,593 Long-lived assets, net consisting of property, plant and equipment and land use rights, net, as well as operating lease right-of-use assets, net by geographical area are as follows: March 31, June 30, (in thousands) China $ 96,679 $ 350,387 United States 170,213 118,756 Other countries 3,849 2,494 $ 270,741 $ 471,637 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of March 31, 2022 and June 30, 2021, the Company had approximately $106.6 million and $81.8 million, respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts, packaging and testing services and others. As of March 31, 2022 and June 30, 2021, the Company had approximately $102.7 million and $90.0 million, respectively, of capital commitments for the purchase of property and equipment. Other Commitments See Note 7 and Note 8 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. In December 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, information and interviews 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 still ongoing and neither DOJ nor DOC have provided the Company with any clear indication of the timing and schedule for the investigation, 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 what, 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. 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, 2022 and June 30, 2021. 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 acquire, maintain or renew such insurance coverage in the future under favorable terms or at all. |
Cybersecutiy Incident
Cybersecutiy Incident | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Cybersecurity Incident | Cybersecurity Incident In April 2022, the Company became aware of a cybersecurity incident involving unauthorized access to one email account at the Company, which caused the Company to make payments to unauthorized bank accounts. As a result, the Company recorded a loss of $1.5 million due to the incident for the three months ended March 31, 2022. |
The Company and Significant A_2
The Company and Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
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, 2021. 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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022 or any other interim period. The consolidated balance sheet at June 30, 2021 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, 2021. Reclassification The Company has reclassified certain amounts previously reported in its financial statements to conform to the current presentation. These reclassifications did not have a material impact on our Condensed Consolidated Financial Statements. See Note 11. |
Joint Venture | The Joint Venture was accounted under the provisions of the consolidation guidance since the Company had controlling financial interest until December 1, 2021. |
Risks and Uncertainties | Certain Significant Risks and Uncertainties Related to Outbreak of Coronavirus Disease 2019 (“COVID-19”) The COVID-19 pandemic has had and continues to have a negative impact on business and economic activities across the globe. As a result of the COVID-19 pandemic and the global economic downturn and changing consumer behaviors due to various restrictions imposed by governments, the Company has experienced shifting market trends, including an increasing demand in the markets for notebooks, PCs and gaming devices and decreasing demand for mobile phone and industrial products, as more consumers are staying at and working from home. While the Company has recently benefited from the increasing demand of consumer electronics and PC related products, there is no guarantee that this trend will continue, and such increasing demand may discontinue or decline as government authorities relax and terminate COVID-19 related restrictions and consumer behaviors change. Furthermore, as the COVID-19 pandemic continues and global economic downturn and high unemployment persists, consumer spending may slow down substantially, in which case the Company may experience a significant decline of customer orders for its products, including those designed for PC-related applications, and such decline will adversely affect its financial conditions and results of operations. The full extent of the future impact of the COVID-19 pandemic on the Company’s operational and financial performance is uncertain and will depend on many factors outside the Company’s control, including, without limitation, the timing, extent, trajectory and duration of the pandemic; the availability, distribution and effectiveness of vaccines; the spread of new variants of COVID-19; the continued or renewed imposition of protective public safety measures and government mandates; the continuing disruption of global supply chain affecting the semiconductor industry; and the impact of the pandemic on the global economy and demand for consumer products. In April 2022, the operations of our two packaging and testing facilities in Shanghai, China were suspended due to a strict lockdown of the city imposed by the local government in response to surging COVID cases. Our facilities in Shanghai were required to shut down and production was halted beginning in mid-April. Transportation suspension in and out of Shanghai also interrupted the shipping of raw materials and finished parts to and from our facilities. We have been working closely with factory management to separate non-infected employees from infected employees, perform regular COVID-19 testing, and secure food, water, and other necessary supplies to support employees who have been affected. In addition, we have been working with local authorities to obtain permission to reopen the facilities, and as of the date of this Form 10-Q, we have received permission to reopen our facilities partially under a “closed-loop” arrangement. Under this arrangement, some of our employees are allowed to live and work on the premises. However, the pace at which we can resume full operations remains challenging due to difficulties in bringing back our workforce to the facilities, procuring certain raw materials and resolving logistical bottlenecks. Currently we intend to gradually ramp up production at these facilities in May and return to normal operation in June 2022, assuming no additional restriction and lockdown are imposed by the government. Furthermore, while we seek to secure alternative sources of packaging capacity from third-party providers to mitigate the loss of in-house packaging capacity, there is no guarantee that such sources are available. Even if alternative sources are available, it will be difficult to complete the transition to a new supplier efficiently and timely, and we currently do not expect to secure sufficient third-party sources to substitute or replace fully our in-house packaging and testing capacity. The suspension of our Shanghai facilities, and the subsequent partial resumption of production, reduces our ability to complete orders from our customers in a timely manner, or at all, which is expected to adversely affect our revenue and results of operation for the three months ending June 30, 2022. It is uncertain how long the Shanghai government intends to impose a shutdown, and even when lifted, the government may reimpose strict zero-positive-case requirements and lockdown. It is not possible to predict at this time the ultimate duration of these restrictions or the impact on financial results in the near-term. |
Use of Estimates | Use of EstimatesThe 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 the economic implications of the COVID-19 pandemic. |
Leases | Leases 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. 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. The Company elected to combine its lease and non-lease components as a single lease component for all asset classes. |
Revenue recognition | 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 product revenue at a point in time when product is shipped to the customer, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company presents revenue net of sales taxes and any similar assessments. Our standard payment terms range from 30 to 60 days. The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company’s products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the Condensed Consolidated Balance Sheets. The Company’s performance obligations relate to contracts with a duration of less than one year. The Company elected to apply the practical expedient provided in ASC 606, “Revenue from Contracts with Customers”. Therefore, the Company is not required to disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The Company recognizes the incremental direct costs of obtaining a contract, which consist of sales commissions, when control over the products they relate to transfers to the customer. Applying the practical expedient, the Company recognizes commissions as expense when incurred, as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. |
Share-based Compensation Expense | Share-based Compensation ExpenseThe Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-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 over the requisite service period of the award, which generally equals the vesting period. The Employee Share Purchase Plan (the “ESPP”) is accounted for at fair value on the date of grant using the Black-Scholes option valuation model. |
Restricted Cash | Restricted CashThe Company maintains restricted cash in connection with cash balances temporarily restricted for regular business operations, including the possibility of a dispute with a vendor. In addition, as a condition of certain loan agreement, the Company was required to keep a compensating balance at the issuing bank. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s Condensed Consolidated Balance Sheets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of cash equivalents is 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, credit risk and terms of the debts. |
Government Grants | Government Grants The Company occasionally receives government grants that provide financial assistance for certain eligible expenditures in China. These grants include reimbursements on interest expense on bank borrowings, payroll tax credits, credit for property, plant and equipment in a particular geographical location, employment 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 |
Long-lived Assets | Long-lived AssetsThe 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 and June 2020 quarters. 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 June 30, 2020. Some of the more significant assumptions used in the estimated future cash flows involve net sales, cost of goods sold, operating expenses, working capital, capital expenditures, income tax rates, long-term growth rates that appropriately reflect the risks inherent in the future cash flow stream and terminal value. 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. Since this recoverability test was performed during fiscal 2020, circumstances have improved such that there are no indicators that the Company’s long-lived assets may not be recoverable. |
Comprehensive Income (Loss) | Comprehensive Income Comprehensive income 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 consists of cumulative foreign currency translation adjustments. Total comprehensive income is presented in the Condensed Consolidated Statements of Comprehensive Income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards not yet adopted In November 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This ASU requires business entities to make annual disclosures about transactions with a government they account for by analogizing to a grant or contribution accounting model under ASC 958-605. The ASU is effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. 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 August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which, among other things, provides guidance on how to account for contracts on an entity’s own equity. This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the ASU eliminated the need for the Company to assess whether a contract on the entity’s own equity (1) permits settlement in unregistered shares, (2) whether counterparty rights rank higher than shareholder’s rights, and (3) whether collateral is required. In addition, the ASU requires incremental disclosure related to contracts on the entity’s own equity and clarifies the treatment of certain financial instruments accounted for under this ASU on earnings per share. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2021, 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. Recently Adopted Accounting Standards In January 2020, the FASB issued 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. The adoption of ASU 2020-01 had no material impact on the Company's Consolidated Financial Statements. In December 2019, the FASB issued 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 Company adopted ASU 2019-12 as of July 1, 2021. ASU 2019-12 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 bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available. |
Equity Method Investment in E_2
Equity Method Investment in Equity Investee (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of deconsolidation | The gain on deconsolidation of the JV Company was calculated as follows: (in thousands) Cash received for sales of shares in the JV Company $ 16,924 Fair value of retained equity method investment 393,124 Carrying amount of non-controlling interest 143,889 Cumulative translation adjustment removal 1,793 Carrying amount of net assets of the JV Company at December 1, 2021 (156,637) Gain on deconsolidation of the JV Company $ 399,093 (in thousands) Gain on 1.1% equity interest sold $ 475 Loss on diluted equity interest from issuance of shares under the employee equity incentive plan (8,116) Gain on 7.82% equity interest sold 4,501 Loss on changes on equity interest of the JV Company, net $ (3,140) |
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, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net income per share attributable to common shareholders: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 (in thousands, except per share data) Numerator: Net income attributable to Alpha and Omega Semiconductor Limited $ 31,650 $ 16,100 $ 438,072 $ 38,577 Denominator: Basic: Weighted average number of common shares used to compute basic net income per share 26,829 25,882 26,596 25,631 Diluted: Weighted average number of common shares used to compute basic net income per share 26,829 25,882 26,596 25,631 Effect of potentially dilutive securities: Stock options, RSUs and ESPP shares 1,594 1,834 1,520 1,497 Weighted average number of common shares used to compute diluted net income per share 28,423 27,716 28,116 27,128 Net income per share attributable to Alpha and Omega Semiconductor Limited: Basic $ 1.18 $ 0.62 $ 16.47 $ 1.51 Diluted $ 1.11 $ 0.58 $ 15.58 $ 1.42 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 (in thousands) (in thousands) Employee stock options and RSUs 2 107 171 80 ESPP 19 — 27 89 Total potential dilutive securities 21 107 198 169 |
Concentration of Credit Risk _2
Concentration of Credit Risk and Significant Customers (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts: Three Months Ended March 31, Nine Months Ended March 31, Percentage of revenue 2022 2021 2022 2021 Customer A 24.2 % 30.2 % 24.8 % 29.1 % Customer B 38.8 % 35.2 % 38.7 % 34.9 % March 31, June 30, Percentage of accounts receivable Customer A 21.2 % 12.4 % Customer B 20.4 % 22.1 % Customer C 13.7 % 21.9 % Customer D 12.8 % * Customer E 15.0 % * *Less than 10% |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable, net: March 31, June 30, (in thousands) Accounts receivable $ 52,362 $ 48,234 Less: Allowance for price adjustments (13,125) (12,415) Less: Allowance for doubtful accounts (30) (30) Accounts receivable, net $ 39,207 $ 35,789 |
Schedule of Inventory, Current | Inventories: March 31, June 30, (in thousands) Raw materials $ 54,435 $ 68,900 Work in-process 67,132 68,824 Finished goods 21,971 16,569 $ 143,538 $ 154,293 |
Other Current Assets | Other current assets: March 31, June 30, (in thousands) VAT receivable $ 550 $ 1,539 Other prepaid expenses 4,098 1,465 Prepaid insurance 1,291 2,615 Prepaid maintenance 774 1,670 Prepayment to supplier 1,295 2,540 Prepaid income tax 3,052 2,221 Interest receivable — 2,207 Customs deposit — 270 Other receivables 638 68 $ 11,698 $ 14,595 |
Property, Plant and Equipment | Property, plant and equipment, net: March 31, June 30, (in thousands) Land $ 4,877 $ 4,877 Building 15,867 71,454 Manufacturing machinery and equipment 266,135 515,320 Equipment and tooling 26,113 27,017 Computer equipment and software 35,199 41,518 Office furniture and equipment 2,778 3,814 Leasehold improvements 35,226 74,733 Land use rights — 9,319 386,195 748,052 Less: accumulated depreciation (228,437) (348,749) 157,758 399,303 Equipment and construction in progress 88,012 37,674 Property, plant and equipment, net $ 245,770 $ 436,977 |
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 (8,834) (6,314) 10,621 13,141 Goodwill 269 269 Intangible assets, net $ 10,890 $ 13,410 |
Schedule Future Amortization Expense of Intangible Assets | Estimated future minimum amortization expense of intangible assets is as follows (in thousands): Year ending June 30, 2022 (Remaining) $ 840 2023 3,286 2024 3,249 2025 3,246 $ 10,621 |
Schedule of Other Assets, Noncurrent | Other long-term assets: March 31, June 30, (in thousands) Prepayments for property and equipment $ 18,500 $ 14,882 Investment in a privately held company 100 100 Customs deposit 1,824 1,120 Deposit with supplier 6,396 — Other long-term deposits 20 927 Office leases deposits 964 1,100 Other 1,661 740 $ 29,465 $ 18,869 |
Schedule of Accrued Liabilities | Accrued liabilities: March 31, June 30, (in thousands) Accrued compensation and benefits $ 25,550 $ 32,756 Warranty accrual 2,483 2,795 Stock rotation accrual 4,207 3,917 Accrued professional fees 3,009 3,017 Accrued inventory 1,150 1,138 Accrued facilities related expenses 2,689 2,536 Accrued property, plant and equipment 8,664 8,688 Other accrued expenses 5,864 6,793 Customer deposit 35,111 7,139 ESPP payable 2,606 715 $ 91,333 $ 69,494 |
Schedule of Product Warranty Liability | The activities in the warranty accrual, included in accrued liabilities, are as follows: Nine Months Ended March 31, 2022 2021 (in thousands) Beginning balance $ 2,795 $ 709 Additions 949 338 Utilization (1,261) (211) Ending balance $ 2,483 $ 836 |
Stock Rotation Accrual | The activities in the stock rotation accrual, included in accrued liabilities, are as follows: Nine Months Ended March 31, 2022 2021 (in thousands) Beginning balance $ 3,917 $ 3,358 Additions 3,030 4,498 Utilization (2,740) (3,771) Ending balance $ 4,207 $ 4,085 |
Other Long-Term Liabilities | Other long-term liabilities: March 31, June 30, (in thousands) Deferred payroll taxes $ — $ 1,219 Customer deposits 72,384 42,000 Other — 904 Other long-term liabilities $ 72,384 $ 44,123 Customer deposits are payments received from customers for securing future product shipments. As of March 31, 2022, $62.4 million were from Customer A and Customer B, and $10.0 million were from other customers. As of June 30, 2021, $42.0 million were from Customer A and Customer B. |
Bank Borrowing (Tables)
Bank Borrowing (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities | Maturities of short-term debt and long-term debt were as follows (in thousands): Year ending June 30, 2022 (Remaining) $ 2,085 2023 25,067 2024 9,000 2025 9,000 2026 9,000 Thereafter 11,250 Total principal 65,402 Less: debt issuance costs (183) Total principal, less debt issuance costs $ 65,219 Short-term Debt Long-term Debt Total Principal amount $ 11,403 $ 53,999 $ 65,402 Less: debt issuance costs (71) (112) (183) Total debt, less debt issuance costs $ 11,332 $ 53,887 $ 65,219 |
Leases - (Tables)
Leases - (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
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 periods presented (in thousands): Nine Months Ended March 31, 2022 2021 Operating leases: Fixed rent expense $ 4,955 $ 5,089 Variable rent expense 741 599 Finance lease: Amortization of equipment 787 1,682 Interest 692 1,699 Short-term leases Short-term lease expenses 144 164 Total lease expenses $ 7,319 $ 9,233 Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands): Nine Months Ended March 31, 2022 2021 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,965 $ 4,721 Operating cash flows from finance lease $ 421 $ 1,699 Financing cash flows from finance lease $ 4,176 $ 12,267 Non-cash investing and financing information: Operating lease right-of-use assets obtained in exchange for lease obligations $ 5,901 $ 2,843 |
Schedule of Lease Assets and Liabilities | Supplemental balance sheets information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): March 31, June 30, Operating Leases : ROU assets associated with operating leases $ 24,971 $ 34,660 Finance Lease: Property, plant and equipment, gross $ 4,831 $ 114,404 Accumulated depreciation (15) (96,470) Property, plant and equipment, net $ 4,816 $ 17,934 Weighted average remaining lease term (in years) Operating leases 7.48 8.44 Finance lease 4.96 1.72 Weighted average discount rate Operating leases 4.24 % 4.67 % Finance lease 4.50 % 5.46 % |
Schedule of Operating Lease Future Minimum Lease Payments (Topic 842) | Future minimum lease payments are as follows as of March 31, 2022 (in thousands): Year ending June 30, Operating Leases Finance Leases The remainder of fiscal 2022 $ 1,550 $ 163 2023 5,382 1,074 2024 4,123 1,083 2025 3,254 1,083 2026 3,207 1,083 Thereafter 13,658 754 Total minimum lease payments 31,174 5,240 Less amount representing interest (4,751) (544) Total lease liabilities $ 26,423 $ 4,696 |
Schedule of Finance Lease Future Minimum Lease Payments (Topic 842) | Future minimum lease payments are as follows as of March 31, 2022 (in thousands): Year ending June 30, Operating Leases Finance Leases The remainder of fiscal 2022 $ 1,550 $ 163 2023 5,382 1,074 2024 4,123 1,083 2025 3,254 1,083 2026 3,207 1,083 Thereafter 13,658 754 Total minimum lease payments 31,174 5,240 Less amount representing interest (4,751) (544) Total lease liabilities $ 26,423 $ 4,696 |
Shareholders' Equity and Shar_2
Shareholders' Equity and Share-based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Restricted Stock Units Activity | Time-based Restric ted Stock Units ( “ TRSU ” ) The following table summarizes the Company's TRSU activities for the nine months ended March 31, 2022: Number of Restricted Stock Weighted Average Weighted Average Aggregate Intrinsic Value Nonvested at June 30, 2021 1,053,524 $ 21.60 1.73 $ 32,016,594 Granted 563,681 $ 46.10 Vested (380,029) $ 20.01 Forfeited (46,251) $ 23.14 Nonvested at March 31, 2022 1,190,925 $ 33.64 1.92 $ 65,084,051 The following table summarizes the Company’s PRSUs activities for the nine months ended March 31, 2022: Number of Performance-based Restricted Stock Weighted Average Weighted Average Aggregate Intrinsic Value Nonvested at June 30, 2021 353,824 $ 22.69 1.74 $ 10,752,711 Granted 194,000 $ 48.65 Vested (151,199) $ 19.44 Forfeited (1,000) $ 16.22 Nonvested at March 31, 2022 395,625 $ 36.68 2.11 $ 21,620,906 |
Summary of Stock Option Activities | The following table summarizes the Company's stock option activities for the nine months ended March 31, 2022: Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Aggregate Shares Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2021 487,875 $ 7.99 2.32 $ 10,928,653 Exercised (93,000) $ 9.24 Outstanding at March 31, 2022 394,875 $ 7.70 1.78 $ 18,541,050 Options vested and expected to vest 394,875 $ 7.70 1.78 $ 18,541,050 Exercisable at March 31, 2022 394,875 $ 7.70 1.78 $ 18,541,050 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows: Nine Months End March 31, 2022 Volatility rate 66.4% Risk-free interest rate 0.3% 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 Income for the periods presented was as follows: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 (in thousands) (in thousands) Cost of goods sold $ 1,282 $ 427 $ 3,560 $ 1,195 Research and development 1,814 1,316 4,769 3,639 Selling, general and administrative 5,177 2,082 13,125 5,091 $ 8,273 $ 3,825 $ 21,454 $ 9,925 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | 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, 2022 2021 2022 2021 (in thousands) (in thousands) Hong Kong $ 164,555 $ 139,167 $ 472,399 $ 396,879 China 31,883 28,110 91,958 74,250 South Korea 2,745 473 8,862 4,069 United States 3,534 1,088 9,004 3,683 Other countries 522 374 1,370 712 $ 203,239 $ 169,212 $ 583,593 $ 479,593 During the three months ended March 31, 2022, the Company corrected an immaterial error to reduce revenues in Hong Kong by $0.5 million, and to increase the revenues in China and South Korea by $0.1 million and $0.4 million, respectively, for the three months ended March 31, 2021. During the nine months ended March 31, 2022, the Company corrected an immaterial error to reduce revenues in Hong Kong by $3.9 million, as well as to increase the revenues in China and South Korea by $0.2 million and $3.7 million, respectively, for the nine months ended March 31, 2021. The following is a summary of revenue by product type: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 (in thousands) (in thousands) Power discrete $ 140,572 $ 122,615 $ 406,235 $ 355,487 Power IC 60,359 43,385 167,782 115,224 Packaging and testing services 2,308 3,212 9,576 8,882 $ 203,239 $ 169,212 $ 583,593 $ 479,593 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Long-lived assets, net consisting of property, plant and equipment and land use rights, net, as well as operating lease right-of-use assets, net by geographical area are as follows: March 31, June 30, (in thousands) China $ 96,679 $ 350,387 United States 170,213 118,756 Other countries 3,849 2,494 $ 270,741 $ 471,637 |
The Company and Significant A_3
The Company and Significant Accounting Policies - Joint Venture (Details) $ in Thousands, ¥ in Millions | Mar. 31, 2022 | Jan. 26, 2022USD ($) | Jan. 26, 2022CNY (¥) | Dec. 31, 2021 | Dec. 24, 2021USD ($) | Dec. 24, 2021CNY (¥) | Dec. 02, 2021director | Dec. 01, 2021 | Nov. 30, 2021director | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Ownership interest, percent | 42.20% | 42.20% | |||||||||||
Proceeds from sale of equity interest in the JV Company | $ | $ 26,347 | $ 0 | |||||||||||
Number of appointments to board of directors | director | 3 | 4 | |||||||||||
Number of directors on Board | director | 7 | ||||||||||||
Joint Venture | |||||||||||||
Ownership interest, percent | 42.20% | 45.80% | 48.80% | 50.90% | |||||||||
Proceeds from sale of equity interest in the JV Company | $ | $ 16,924 | ||||||||||||
Joint Venture | Third Party Investor | |||||||||||||
Ownership interest sold, percent | 7.82% | 7.82% | 1.10% | 1.10% | 2.10% | ||||||||
Proceeds from sale of equity interest in the JV Company | $ 80,000 | ¥ 509 | $ 9,400 | ¥ 60 | $ 16,900 | ¥ 108 | |||||||
Joint Venture | Employee Incentive Plan | Employee Incentive Plan | |||||||||||||
Ownership interest sold, percent | 3.99% | 3.99% | |||||||||||
Parent Company | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | |||||||||||||
Ownership interest, percent | 50.90% | ||||||||||||
Chongqing Funds | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | |||||||||||||
Ownership interest, percent | 45.80% | 49.10% |
The Company and Significant A_4
The Company and Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Jun. 30, 2021 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 0.2 | $ 2.4 |
The Company and Significant A_5
The Company and Significant Accounting Policies - Government Grants (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Government Grants, Reduction Recorded To Interest Expense | $ 0 | $ 0.7 | $ 0.9 | $ 2.2 |
Government Grants, Reduction Recorded To Property, Plant And Equipment | 0 | 0 | 1.2 | 0.1 |
Government Grants, Reduction Recorded To Operating Expenses | $ 0 | $ 0.1 | $ 0.2 | $ 3.7 |
Equity Method Investment in E_3
Equity Method Investment in Equity Investee - Narrative (Details) $ in Thousands, ¥ in Millions | Mar. 31, 2022 | Jan. 26, 2022USD ($) | Jan. 26, 2022CNY (¥) | Dec. 31, 2021 | Dec. 24, 2021USD ($) | Dec. 24, 2021CNY (¥) | Dec. 02, 2021director | Dec. 01, 2021 | Nov. 30, 2021director | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership interest, percent | 42.20% | 42.20% | |||||||||||||
Number of appointments to board of directors | director | 3 | 4 | |||||||||||||
Number of directors on Board | director | 7 | ||||||||||||||
Gain on deconsolidation of the JV Company | $ 0 | $ 0 | $ 399,093 | $ 0 | |||||||||||
Proceeds from sale of equity interest in the JV Company | 26,347 | 0 | |||||||||||||
Loss on changes on equity interest of the JV Company, net | (3,140) | 0 | |||||||||||||
Loss on equity investment | 1,136 | 0 | 1,136 | 0 | |||||||||||
Gain (loss) on changes of equity interest in the JV Company, net | $ 4,501 | $ 0 | (3,140) | $ 0 | |||||||||||
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | Chongqing Funds | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership interest, percent | 45.80% | 49.10% | |||||||||||||
Joint Venture | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership interest, percent | 42.20% | 45.80% | 48.80% | 50.90% | |||||||||||
Gain on deconsolidation of the JV Company | $ 399,093 | ||||||||||||||
Proceeds from sale of equity interest in the JV Company | 16,924 | ||||||||||||||
Loss on changes on equity interest of the JV Company, net | $ (3,140) | ||||||||||||||
Third Party Investor | Joint Venture | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Gain on deconsolidation of the JV Company | $ 4,501 | $ 475 | |||||||||||||
Ownership interest sold, percent | 7.82% | 7.82% | 1.10% | 1.10% | 2.10% | ||||||||||
Proceeds from sale of equity interest in the JV Company | $ 80,000 | ¥ 509 | $ 9,400 | ¥ 60 | $ 16,900 | ¥ 108 | |||||||||
Employee Incentive Plan | Joint Venture | Employee Incentive Plan | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Ownership interest sold, percent | 3.99% | 3.99% |
Equity Method Investment in E_4
Equity Method Investment in Equity Investee - Schedule of Gain on Deconsolidation (Details) $ in Thousands, ¥ in Millions | Jan. 26, 2022USD ($) | Jan. 26, 2022CNY (¥) | Dec. 24, 2021USD ($) | Dec. 24, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 01, 2021USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Cash received for sales of shares in the JV Company | $ 26,347 | $ 0 | |||||||||
Gain on deconsolidation of the JV Company | $ 0 | $ 0 | 399,093 | 0 | |||||||
Share-based Payment Arrangement, Expense | (8,273) | (3,825) | (21,454) | (9,925) | |||||||
Loss on changes on equity interest of the JV Company, net | (3,140) | 0 | |||||||||
Gain (loss) on changes of equity interest in the JV Company, net | $ 4,501 | $ 0 | (3,140) | $ 0 | |||||||
Joint Venture | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Cash received for sales of shares in the JV Company | $ 16,924 | ||||||||||
Fair value of retained equity method investment | 393,124 | ||||||||||
Carrying amount of non-controlling interest | 143,889 | ||||||||||
Cumulative translation adjustment removal | 1,793 | ||||||||||
Carrying amount of net assets of the JV Company at December 1, 2021 | $ (156,637) | ||||||||||
Gain on deconsolidation of the JV Company | 399,093 | ||||||||||
Share-based Payment Arrangement, Expense | (8,116) | ||||||||||
Loss on changes on equity interest of the JV Company, net | $ (3,140) | ||||||||||
Joint Venture | Third Party Investor | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Cash received for sales of shares in the JV Company | $ 80,000 | ¥ 509 | $ 9,400 | ¥ 60 | $ 16,900 | ¥ 108 | |||||
Gain on deconsolidation of the JV Company | $ 4,501 | $ 475 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Jan. 26, 2022 | Dec. 31, 2021 | Dec. 02, 2021 | Nov. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2022 |
Related Party Transaction [Line Items] | |||||||
Ownership interest, percent | 42.20% | ||||||
Joint Venture | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership interest, percent | 42.20% | 45.80% | 48.80% | 50.90% | |||
Purchases from related party | $ 45.8 | $ 61.4 | |||||
Sales from related party | $ 14.2 | $ 18.4 |
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, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||||
Net income attributable to Alpha and Omega Semiconductor Limited | $ 31,650 | $ 16,100 | $ 438,072 | $ 38,577 |
Basic: | ||||
Weighted average number of common shares used to compute basic net income per share | 26,829 | 25,882 | 26,596 | 25,631 |
Effect of potentially dilutive securities: | ||||
Stock options, RSUs and ESPP shares | 1,594 | 1,834 | 1,520 | 1,497 |
Weighted average number of common shares used to compute diluted net income per share | 28,423 | 27,716 | 28,116 | 27,128 |
Net income per share attributable to Alpha and Omega Semiconductor Limited: | ||||
Basic (in dollars per share) | $ 1.18 | $ 0.62 | $ 16.47 | $ 1.51 |
Diluted (in dollars per share) | $ 1.11 | $ 0.58 | $ 15.58 | $ 1.42 |
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, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive securities (in shares) | 21 | 107 | 198 | 169 |
Employee stock options and RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive securities (in shares) | 2 | 107 | 171 | 80 |
ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential dilutive securities (in shares) | 19 | 0 | 27 | 89 |
Concentration of Credit Risk _3
Concentration of Credit Risk and Significant Customers - (Details) | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Minimum | ||||||
Concentration Risk | ||||||
Terms of credit sales, (in days) | 30 days | |||||
Maximum | ||||||
Concentration Risk | ||||||
Terms of credit sales, (in days) | 60 days | |||||
Customer A | Revenue | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Customers greater than 10% of total | 24.20% | 30.20% | 24.80% | 29.10% | ||
Customer A | Accounts Receivable | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Customers greater than 10% of total | 21.20% | 12.40% | ||||
Customer B | Revenue | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Customers greater than 10% of total | 38.80% | 35.20% | 38.70% | 34.90% | ||
Customer B | Accounts Receivable | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Customers greater than 10% of total | 20.40% | 22.10% | ||||
Customer C | Accounts Receivable | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Customers greater than 10% of total | 13.70% | 21.90% | ||||
Customer D | Accounts Receivable | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Customers greater than 10% of total | 12.80% | |||||
Customer E | Accounts Receivable | Customer Concentration Risk | ||||||
Concentration Risk | ||||||
Customers greater than 10% of total | 15.00% |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 52,362 | $ 48,234 |
Less: Allowance for price adjustments | (13,125) | (12,415) |
Less: Allowance for doubtful accounts | (30) | (30) |
Accounts receivable, net | $ 39,207 | $ 35,789 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 54,435 | $ 68,900 |
Work in-process | 67,132 | 68,824 |
Finished goods | 21,971 | 16,569 |
Inventory, net | $ 143,538 | $ 154,293 |
Balance Sheet Components - Othe
Balance Sheet Components - Other current assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
VAT receivable | $ 550 | $ 1,539 |
Other prepaid expenses | 4,098 | 1,465 |
Prepaid insurance | 1,291 | 2,615 |
Prepaid maintenance | 774 | 1,670 |
Prepayment to supplier | 1,295 | 2,540 |
Prepaid income tax | 3,052 | 2,221 |
Interest Receivable, Current | 0 | 2,207 |
Customs deposit | 0 | 270 |
Other receivables | 638 | 68 |
Other Assets, Current | $ 11,698 | $ 14,595 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, plant, and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | $ 386,195 | $ 748,052 |
Land use rights | 0 | 9,319 |
Less: accumulated depreciation | (228,437) | (348,749) |
Property, plant and equipment excluding equipment and construction in progress, net | 157,758 | 399,303 |
Equipment and construction in progress | 88,012 | 37,674 |
Property, plant and equipment, net | 245,770 | 436,977 |
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 | 15,867 | 71,454 |
Manufacturing machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 266,135 | 515,320 |
Equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 26,113 | 27,017 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 35,199 | 41,518 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | 2,778 | 3,814 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment excluding equipment and construction In progress, gross | $ 35,226 | $ 74,733 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 19,455 | $ 19,455 |
Less: accumulated amortization | (8,834) | (6,314) |
Finite-Lived Intangible Assets, Net | 10,621 | 13,141 |
Goodwill | 269 | 269 |
Intangible assets, net | 10,890 | 13,410 |
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 - Futu
Balance Sheet Components - Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
2022 (Remaining) | $ 840 | |
2023 | 3,286 | |
2024 | 3,249 | |
2025 | 3,246 | |
Finite-Lived Intangible Assets, Net | $ 10,621 | $ 13,141 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other long term assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepayments for property and equipment | $ 18,500 | $ 14,882 |
Investment in a privately held company | 100 | 100 |
Customs deposit | 1,824 | 1,120 |
Deposit with supplier | 6,396 | 0 |
Other long-term deposits | 20 | 927 |
Office leases deposits | 964 | 1,100 |
Other | 1,661 | 740 |
Other long-term assets | $ 29,465 | $ 18,869 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued compensation and benefits | $ 25,550 | $ 32,756 | ||
Warranty accrual | 2,483 | 2,795 | $ 836 | $ 709 |
Stock rotation accrual | 4,207 | 3,917 | $ 4,085 | $ 3,358 |
Accrued professional fees | 3,009 | 3,017 | ||
Accrued inventory | 1,150 | 1,138 | ||
Accrued facilities related expenses | 2,689 | 2,536 | ||
Accrued property, plant and equipment | 8,664 | 8,688 | ||
Other accrued expenses | 5,864 | 6,793 | ||
Customer deposit | 35,111 | 7,139 | ||
ESPP payable | 2,606 | 715 | ||
Accrued liabilities | $ 91,333 | $ 69,494 |
Balance Sheet Components - Prod
Balance Sheet Components - Product Warranty Accrual (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning balance | $ 2,795 | $ 709 |
Additions | 949 | 338 |
Utilization | (1,261) | (211) |
Ending balance | $ 2,483 | $ 836 |
Balance Sheet Components - Stoc
Balance Sheet Components - Stock Rotation Accrual (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock Rotation Accrual Increae (Decrease) [Roll Forward] | ||
Beginning balance | $ 3,917 | $ 3,358 |
Additions | 3,030 | 4,498 |
Utilization | (2,740) | (3,771) |
Ending balance | $ 4,207 | $ 4,085 |
Balance Sheet Components - Ot_3
Balance Sheet Components - Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Concentration Risk | ||
Deferred payroll taxes | $ 0 | $ 1,219 |
Customer deposits | 72,384 | 42,000 |
Other | 0 | 904 |
Other long-term liabilities | 72,384 | 44,123 |
Customer A and Customer B | ||
Concentration Risk | ||
Customer deposits | 62,400 | $ 42,000 |
Other customers | ||
Concentration Risk | ||
Customer deposits | $ 10,000 |
Bank Borrowing - Narrative (Det
Bank Borrowing - Narrative (Details) ¥ in Millions | Feb. 16, 2022USD ($) | Aug. 18, 2021USD ($) | Aug. 09, 2019USD ($) | May 01, 2018USD ($) | Aug. 15, 2017USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Mar. 31, 2022USD ($) | Mar. 31, 2022CNY (¥) | Aug. 11, 2021USD ($) | Jun. 30, 2021USD ($) | Oct. 31, 2019CNY (¥) | Nov. 16, 2018USD ($) | Nov. 16, 2018CNY (¥) |
Debt Instrument [Line Items] | |||||||||||||||||
Restricted cash | $ 200,000 | $ 2,400,000 | |||||||||||||||
Secured Debt | Accounts Receivable Factoring Agreement August 9 2019 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Accounts Receivable Factoring Agreement, Reduction Of Maximum Borrowing Capacity | $ 8,000,000 | ||||||||||||||||
Secured Debt | Jireh | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 45,000,000 | ||||||||||||||||
Debt instrument, term | 5 years 6 months | ||||||||||||||||
Amount outstanding | 45,000,000 | ||||||||||||||||
Proceeds from lines of credit | $ 45,000,000 | ||||||||||||||||
Bank Of Communications Limited | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 8,500,000 | ¥ 140 | ¥ 60 | ||||||||||||||
Bank Of Communications Limited | Credit Facility, 3.85%, Due November 18, 2022 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from short-term debt | $ 1,700,000 | ¥ 11 | |||||||||||||||
Loan agreements, short-term debt | 1,700,000 | ||||||||||||||||
Stated percentage | 3.85% | 3.85% | |||||||||||||||
Hongkong And Shanghai Banking Corporation Limited | Secured Debt | Accounts Receivable Factoring Agreement August 9 2019 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Basis spread on variable rate | 1.75% | ||||||||||||||||
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 | 8,000,000 | ||||||||||||||||
Accounts receivable factoring agreement, borrowed amount outstanding | 0 | ||||||||||||||||
The Bank | Secured Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 17,800,000 | ||||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||||
Amount outstanding | 14,400,000 | ||||||||||||||||
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 | ||||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||||
Amount outstanding | 3,700,000 | ||||||||||||||||
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 | 4.99% | ||||||||||||||||
Basis spread on variable rate, multiple | 1.05 | 1.05 | |||||||||||||||
Foreign Line of Credit | Industrial And Commercial Bank of China | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from short-term debt | $ 800,000 | ¥ 5 | |||||||||||||||
Short-term debt, fixed interest rate | 370.00% | 370.00% | |||||||||||||||
Loan agreements, short-term debt | $ 600,000 | $ 10,300,000 | ¥ 72 | ||||||||||||||
Foreign Line of Credit | Industrial And Commercial Bank of China | Line of Credit Facility, Trade Borrowings | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ | 27 | ||||||||||||||||
Foreign Line of Credit | Industrial And Commercial Bank of China | Line of Credit Facility, Working Capital Borrowings | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 45 |
Bank Borrowing - Schedule of De
Bank Borrowing - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Debt Disclosure [Abstract] | ||
2022 (Remaining) | $ 2,085 | |
2023 | 25,067 | |
2024 | 9,000 | |
2025 | 9,000 | |
2026 | 9,000 | |
Thereafter | 11,250 | |
Total principal, less debt issuance costs | 65,402 | |
Less: debt issuance costs | (183) | |
Debt, Long-Term And Short-Term, Combined Amount, Net | 65,219 | |
Short-term Debt [Abstract] | ||
Principal amount | 11,403 | |
Less: debt issuance costs | (71) | |
Total debt, less debt issuance costs | 11,332 | |
Long-term Debt, Unclassified [Abstract] | ||
Principal amount | 53,999 | |
Less: debt issuance costs | (112) | |
Total debt, less debt issuance costs | $ 53,887 | $ 77,990 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands, ¥ in Millions | Mar. 31, 2022USD ($) | Jun. 30, 2021USD ($) | May 09, 2018CNY (¥) |
Debt Instrument [Line Items] | |||
Operating lease liability | $ 26,423 | ||
ROU assets associated with operating leases | 24,971 | $ 34,660 | |
Lease Financing | Manufacturing machinery and equipment | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 4,800 | ||
Lease Financing | YinHai Leasing Company and China Import/Export Bank | YinHai Leasing Company and China Import/Export Bank | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 400 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Expenses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating leases: | ||
Fixed rent expense | $ 4,955 | $ 5,089 |
Variable rent expense | 741 | 599 |
Finance lease: | ||
Amortization of equipment | 787 | 1,682 |
Interest | 692 | 1,699 |
Short-term leases | ||
Short-term lease expenses | 144 | 164 |
Total lease expenses | $ 7,319 | $ 9,233 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Operating Leases: | ||
ROU assets associated with operating leases | $ 24,971 | $ 34,660 |
Finance Lease: | ||
Property, plant and equipment, gross | 4,831 | 114,404 |
Accumulated depreciation | (15) | (96,470) |
Property, plant and equipment, net | $ 4,816 | $ 17,934 |
Weighted average remaining lease term (in years) | ||
Operating leases | 7 years 5 months 23 days | 8 years 5 months 8 days |
Finance lease | 4 years 11 months 15 days | 1 year 8 months 19 days |
Weighted average discount rate | ||
Operating leases | 4.24% | 4.67% |
Finance lease | 4.50% | 5.46% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid from amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 4,965 | $ 4,721 |
Operating cash flows from finance lease | 421 | 1,699 |
Financing cash flows from finance lease | 4,176 | 12,267 |
Operating lease right-of-use assets obtained in exchange for lease obligations | $ 5,901 | $ 2,843 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Topic 842) (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Leases | |
The remainder of fiscal 2022 | $ 1,550 |
2023 | 5,382 |
2024 | 4,123 |
2025 | 3,254 |
2026 | 3,207 |
Thereafter | 13,658 |
Total minimum lease payments | 31,174 |
Less amount representing interest | (4,751) |
Total lease liabilities | 26,423 |
Finance Leases | |
The remainder of fiscal 2022 | 163 |
2023 | 1,074 |
2024 | 1,083 |
2025 | 1,083 |
2026 | 1,083 |
Thereafter | 754 |
Total minimum lease payments | 5,240 |
Less amount representing interest | (544) |
Finance Lease, Liability | $ 4,696 |
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 | 137 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Sep. 30, 2017 | |
Class of Stock [Line Items] | ||||||
Treasury Stock, Shares, Retired | 0 | |||||
Share repurchase program, authorized amount (USD in Millions) | $ 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 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ (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 compensation expense | $ 8,273 | $ 3,825 | $ 21,454 | $ 9,925 | ||
Treasury Stock Reissued | ||||||
Class of Stock [Line Items] | ||||||
Treasury stock acquired, average price per share (in dollars per share) | $ 10.07 | |||||
Shares reissued (in shares) | 166,645 | |||||
Shares reissued, average price (in dollars per share) | $ 5.02 | |||||
2018 Market-based Restricted Stock Units (MSU) | ||||||
Class of Stock [Line Items] | ||||||
Share-based compensation expense | $ 400 | $ 300 | $ 1,200 | $ 900 |
Shareholders' Equity and Shar_4
Shareholders' Equity and Share-based Compensation - Time-based Restricted Stock Activity (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2022 |
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) | 3 years 6 months | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at beginning of period (in shares) | 1,053,524 | ||
Granted (in shares) | 563,681 | ||
Vested (in shares) | (380,029) | ||
Forfeited (in shares) | (46,251) | ||
Nonvested at end of period (in shares) | 1,190,925 | 1,053,524 | 1,190,925 |
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 beginning of period (in dollars per share) | $ 21.60 | ||
Granted (in dollars per share) | 46.10 | ||
Vested (in dollars per share) | 20.01 | ||
Forfeited (in dollars per share) | 23.14 | ||
Nonvested at end of period (in dollars per share | $ 33.64 | $ 21.60 | $ 33.64 |
Weighted average remaining recognition period (in years) | 1 year 8 months 23 days | 1 year 11 months 1 day | |
Aggregate Intrinsic Value | $ 65,084,051 | $ 32,016,594 | $ 65,084,051 |
Shareholders' Equity and Shar_5
Shareholders' Equity and Share-based Compensation - Market-based Restricted Stock Units Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 8,273 | $ 3,825 | $ 21,454 | $ 9,925 | ||
2021 Market-based Restricted Stock Units (MSU) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 1.00% | |||||
Expected term | 3 years 1 month 6 days | |||||
Dividend yield | 0.00% | |||||
Share-based compensation expense | 2,000 | 2,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted (in shares) | 1,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 62.80% | |||||
2021 Market-based Restricted Stock Units (MSU) | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years 1 month 6 days | |||||
2021 Market-based Restricted Stock Units (MSU) | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 7 years 1 month 6 days | |||||
2018 Market-based Restricted Stock Units (MSU) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 400 | $ 300 | $ 1,200 | $ 900 | ||
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_6
Shareholders' Equity and Share-based Compensation - Performance-based Restricted Stock Units (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 8,273,000 | $ 3,825,000 | $ 21,454,000 | $ 9,925,000 | ||
Deferred compensation share-based arrangements, liability, current | $ 0 | $ 100,000 | 0 | 0 | ||
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) | 3 years 6 months | |||||
Performance Based Restricted Stock Units (PRSUs) Member | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 1,000,000 | 500,000 | 3,000,000 | 1,300,000 | ||
Share-based payment arrangement, expense, non-cash | $ 0 | $ 800,000 | 300,000 | $ 2,200,000 | ||
Value of grants in period | $ 4,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested at beginning of period (in shares) | 353,824 | |||||
Granted (in shares) | 194,000 | |||||
Vested (in shares) | (151,199) | |||||
Forfeited (in shares) | (1,000) | |||||
Nonvested at end of period (in shares) | 395,625 | 353,824 | 395,625 | 395,625 | ||
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 beginning of period (in dollars per share) | $ 22.69 | |||||
Granted (in dollars per share) | 48.65 | |||||
Vested (in dollars per share) | 19.44 | |||||
Forfeited (in dollars per share) | 16.22 | |||||
Nonvested at end of period (in dollars per share | $ 36.68 | $ 22.69 | $ 36.68 | $ 36.68 | ||
Weighted average remaining recognition period (in years) | 2 years 1 month 9 days | 1 year 8 months 26 days | ||||
Aggregate Intrinsic Value | $ 21,620,906 | $ 10,752,711 | $ 21,620,906 | $ 21,620,906 |
Shareholders' Equity and Shar_7
Shareholders' Equity and Share-based Compensation - Stock Options Outstanding and Exercisable (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 487,875 | ||
Exercised (in shares) | (93,000) | ||
Outstanding at end of period (In shares) | 394,875 | 487,875 | 394,875 |
Options vested and expected to vest (in shares) | 394,875 | 394,875 | |
Exercisable at end of period (in shares) | 394,875 | 394,875 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of period (in dollars per share) | $ 7.99 | ||
Exercised (in dollars per share) | 9.24 | ||
Outstanding at end of period (in dollars per share) | $ 7.70 | $ 7.99 | 7.70 |
Options vested and expected to vest (in dollars per share) | 7.70 | 7.70 | |
Exercisable at end of period (in dollars per share) | $ 7.70 | $ 7.70 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options outstanding, Weighted-Average Remaining Contractual Life (in years) | 1 year 9 months 10 days | 2 years 3 months 25 days | |
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 1 year 9 months 10 days | ||
Exercisable at end of period, Weighted Average Remaining Contractual Life (in years) | 1 year 9 months 10 days | ||
Options outstanding, Aggregate Intrinsic Value | $ 18,541,050 | $ 10,928,653 | $ 18,541,050 |
Options vested and expected to vest, Aggregate Intrinsic Value | 18,541,050 | 18,541,050 | |
Exercisable at end of period, Aggregate Intrinsic Value | $ 18,541,050 | $ 18,541,050 |
Shareholders' Equity and Shar_8
Shareholders' Equity and Share-based Compensation - Employee Share Purchase Plan (Details) - shares | 9 Months Ended | 137 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Repurchase of common shares under shares repurchase program | 0 | 6,784,648 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility rate | 66.40% | |
Risk-free interest rate | 0.30% | |
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 ($) | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 8,273,000 | $ 3,825,000 | $ 21,454,000 | $ 9,925,000 | ||||
Repurchase of common shares under shares repurchase program | 0 | 6,784,648 | ||||||
Options outstanding, Weighted-Average Remaining Contractual Life (in years) | 1 year 9 months 10 days | 2 years 3 months 25 days | ||||||
Options vested and expected to vest (in shares) | 394,875 | 394,875 | 394,875 | 394,875 | ||||
Options vested and expected to vest (in dollars per share) | $ 7.70 | $ 7.70 | $ 7.70 | $ 7.70 | ||||
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 1 year 9 months 10 days | |||||||
Options vested and expected to vest, Aggregate Intrinsic Value | $ 18,541,050 | $ 18,541,050 | $ 18,541,050 | $ 18,541,050 | ||||
Exercisable at end of period (in shares) | 394,875 | 394,875 | 394,875 | 394,875 | ||||
Exercisable at end of period (in dollars per share) | $ 7.70 | $ 7.70 | $ 7.70 | $ 7.70 | ||||
Exercisable at end of period, Weighted Average Remaining Contractual Life (in years) | 1 year 9 months 10 days | |||||||
Exercisable at end of period, Aggregate Intrinsic Value | $ 18,541,050 | $ 18,541,050 | $ 18,541,050 | $ 18,541,050 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||||
Outstanding at beginning of period (in shares) | 487,875 | |||||||
Outstanding at end of period (In shares) | 394,875 | 487,875 | 394,875 | 394,875 | 394,875 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||||||
Outstanding at beginning of period (in dollars per share) | $ 7.99 | |||||||
Outstanding at end of period (in dollars per share) | $ 7.70 | $ 7.99 | $ 7.70 | $ 7.70 | $ 7.70 | |||
Options outstanding, Aggregate Intrinsic Value | $ 18,541,050 | $ 10,928,653 | $ 18,541,050 | $ 18,541,050 | $ 18,541,050 | |||
2018 Market-based Restricted Stock Units (MSU) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | 400,000 | 300,000 | 1,200,000 | 900,000 | ||||
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 compensation expense | $ 1,000,000 | $ 500,000 | $ 3,000,000 | $ 1,300,000 | ||||
Granted (in shares) | 194,000 |
Shareholders' Equity and Sha_10
Shareholders' Equity and Share-based Compensation - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation expense | $ 8,273 | $ 3,825 | $ 21,454 | $ 9,925 | |
Unrecognized compensation expense | $ 86,200 | 86,200 | 86,200 | ||
Recognition period of share-based compensation expense (in years) | 3 years 6 months | ||||
Cost of goods sold | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation expense | 1,282 | 427 | 3,560 | 1,195 | |
Research and development | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation expense | 1,814 | 1,316 | 4,769 | 3,639 | |
Selling, general and administrative | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation expense | $ 5,177 | $ 2,082 | $ 13,125 | $ 5,091 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 2,902 | $ 1,014 | $ 38,318 | $ 2,694 | |
Discrete income tax expense | 700 | 33,500 | 40 | ||
Income from sale of equity interest in a joint venture | $ 396,000 | 4,500 | 396,000 | ||
Gain on deconsolidation of the JV Company | $ 0 | $ 0 | $ 399,093 | $ 0 | |
Estimated effective income tax rate excluding discrete income tax expense | 7.40% | 6.30% | 6.00% | 7.00% | |
Income (loss) before taxes, excluding income and gain from sale of equity interests in joint venture | $ 34,500 | $ 476,400 | |||
Income (loss) before taxes, excluding income from sale of equity interest in joint venture. | 30,000 | 80,400 | |||
Income (loss) before income taxes | 35,688 | $ 15,981 | 477,546 | $ 38,968 | |
Other discrete income tax items | 100 | ||||
Unrecognized tax benefits | 7,800 | 7,800 | |||
Unrecognized tax benefit that would impact effective tax rate | $ 4,800 | $ 4,800 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narratives (Details) | 9 Months Ended |
Mar. 31, 2022Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Segment and Geographic Inform_4
Segment and Geographic Information - Revenue by Location and Product Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ (203,239) | $ (169,212) | $ (583,593) | $ (479,593) |
Power discrete | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (140,572) | (122,615) | (406,235) | (355,487) |
Power IC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (60,359) | (43,385) | (167,782) | (115,224) |
Packaging and testing services | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (2,308) | (3,212) | (9,576) | (8,882) |
Hong Kong | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (164,555) | (139,167) | (472,399) | (396,879) |
Hong Kong | Revision of Prior Period, Adjustment | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 500 | 3,900 | ||
China | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (31,883) | (28,110) | (91,958) | (74,250) |
China | Revision of Prior Period, Adjustment | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (100) | (200) | ||
South Korea | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (2,745) | (473) | (8,862) | (4,069) |
South Korea | Revision of Prior Period, Adjustment | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (400) | (3,700) | ||
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | (3,534) | (1,088) | (9,004) | (3,683) |
Other countries | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ (522) | $ (374) | $ (1,370) | $ (712) |
Segment and Geographic Inform_5
Segment and Geographic Information - Long-lived Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net and land use rights, net | $ 270,741 | $ 471,637 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net and land use rights, net | 96,679 | 350,387 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net and land use rights, net | 170,213 | 118,756 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net and land use rights, net | $ 3,849 | $ 2,494 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Jun. 30, 2021 |
Raw materials, wafers, and packaging and testing services puchase commitments | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 106.6 | $ 81.8 |
Property and equipment purchase commitments | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 102.7 | $ 90 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingencies and Indemnities (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Indemnifications accrual | $ 0 | $ 0 |
Cybersecutiy Incident (Details)
Cybersecutiy Incident (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Loss from Cyber Security Incident | |
Loss Contingencies [Line Items] | |
Loss recorded in the period from cyber security incident | $ 1.5 |