Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jul. 31, 2022 | Dec. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2022 | ||
Current Fiscal Year End Date | --06-30 | ||
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 | ||
Title of 12(b) Security | Common Shares, $0.002 par value per share | ||
Trading Symbol | AOSL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,327 | ||
Entity Common Stock, Shares Outstanding (in shares) | 27,397,273 | ||
Entity Central Index Key | 0001387467 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 243 |
Auditor Name | BDO USA, LLP |
Auditor Location | San Jose, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 314,352 | $ 202,412 |
Restricted cash | 299 | 233 |
Accounts receivable, net | 65,681 | 35,789 |
Inventories | 158,040 | 154,293 |
Other current assets | 11,220 | 14,595 |
Total current assets | 549,592 | 407,322 |
Property, plant and equipment, net | 318,666 | 436,977 |
Operating lease right-of-use assets, net | 23,674 | 34,660 |
Intangible assets, net | 10,050 | 13,410 |
Equity method investment | 378,378 | 0 |
Deferred income tax assets | 592 | 5,167 |
Restricted cash - long-term | 0 | 2,168 |
Other long-term assets | 17,677 | 18,869 |
Total assets | 1,298,629 | 918,573 |
Current liabilities: | ||
Accounts payable | 87,377 | 80,699 |
Accrued liabilities | 116,893 | 69,494 |
Payable related to equity investee, net | 28,989 | 0 |
Income taxes payable | 4,248 | 2,604 |
Short-term debt | 25,563 | 58,030 |
Finance lease liabilities | 802 | 16,724 |
Operating lease liabilities | 3,850 | 5,679 |
Total current liabilities | 267,722 | 233,230 |
Long-term debt | 42,486 | 77,990 |
Income taxes payable - long-term | 2,158 | 1,319 |
Deferred income tax liabilities | 28,757 | 2,448 |
Finance lease liabilities - long-term | 3,932 | 12,698 |
Operating lease liabilities - long-term | 20,878 | 30,440 |
Other long-term liabilities | 78,603 | 44,123 |
Total liabilities | 444,536 | 402,248 |
Commitments and contingencies (Note 15) | ||
Preferred shares, par value $0.002 per share: | ||
Authorized: 10,000 shares; issued and outstanding: none at June 30, 2022 and 2021 | 0 | 0 |
Common shares, par value $0.002 per share: | ||
Authorized: 100,000 shares; issued and outstanding: 33,988 shares and 27,371 shares, respectively at June 30, 2022 and 32,975 shares and 26,350 shares, respectively at June 30, 2021 | 68 | 66 |
Treasury shares at cost; 6,617 shares at June 30, 2022 and 6,625 shares at June 30, 2021 | (66,000) | (66,064) |
Additional paid-in capital | 288,951 | 259,993 |
Accumulated other comprehensive income | 1,080 | 2,315 |
Retained earnings | 629,994 | 176,895 |
Total Alpha and Omega Semiconductor Limited shareholders’ equity | 854,093 | 373,205 |
Noncontrolling interest | 0 | 143,120 |
Total equity | 854,093 | 516,325 |
Total liabilities and equity | $ 1,298,629 | $ 918,573 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 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) | 33,988,000 | 32,975,000 |
Common stock, shares outstanding (in shares) | 27,371,000 | 26,350,000 |
Treasury shares (in shares) | 6,617,000 | 6,625,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 777,552 | $ 656,902 | $ 464,909 |
Operating expenses | 508,996 | 452,359 | 362,178 |
Gross profit | 268,556 | 204,543 | 102,731 |
Operating expenses: | |||
Research and development | 71,259 | 62,953 | 51,252 |
Selling, general and administrative | 95,259 | 77,514 | 64,816 |
Impairment of privately-held investment | 0 | 0 | 600 |
Total operating expenses | 166,518 | 140,467 | 116,668 |
Operating income (loss) | 102,038 | 64,076 | (13,937) |
Interest expenses, net | 999 | 2,456 | (1,229) |
Interest expenses, net | (3,920) | (6,308) | (2,743) |
Gain on deconsolidation of the JV Company | 399,093 | 0 | 0 |
Loss on changes of equity interest in the JV Company, net | (3,140) | 0 | 0 |
Net income (loss) before income taxes | 495,070 | 60,224 | (17,909) |
Income tax expense | 39,258 | 3,935 | 348 |
Net income (loss) before loss from equity method investment | 455,812 | 56,289 | (18,257) |
Equity method investment loss from equity investee | 2,629 | 0 | 0 |
Net income (loss) | 453,183 | 56,289 | (18,257) |
Net income (loss) attributable to noncontrolling interest | 20 | (1,827) | (11,661) |
Net income (loss) attributable to Alpha and Omega Semiconductor Limited | $ 453,163 | $ 58,116 | $ (6,596) |
Net income (loss) per common share attributable to Alpha and Omega Semiconductor Limited | |||
Basic (in dollars per share) | $ 16.93 | $ 2.25 | $ (0.27) |
Diluted (in dollars per share) | $ 16.07 | $ 2.13 | $ (0.27) |
Weighted average number of common share attributable to Alpha and Omega Semiconductor Limited used to compute net income (loss) per share: | |||
Basic (in shares) | 26,764 | 25,786 | 24,840 |
Diluted (in shares) | 28,203 | 27,272 | 24,840 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 453,183 | $ 56,289 | $ (18,257) |
Foreign currency translation adjustment | 1,307 | 14,190 | (4,839) |
Cumulative translation adjustment removal due to deconsolidation of the JV Company | (3,642) | 0 | 0 |
Comprehensive income (loss) | 450,848 | 70,479 | (23,096) |
Less: Noncontrolling interest | (1,080) | 4,921 | (14,066) |
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited | $ 451,928 | $ 65,558 | $ (9,030) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Total AOS Shareholders' Equity | Preferred Shares | Common Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (loss) | Retained Earnings | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | $ 443,289 | ||||||||
Balance (in shares) at Jun. 30, 2019 | 0 | ||||||||
Balance (in shares) at Jun. 30, 2019 | 31,163,000 | ||||||||
Balance (in shares) at Jun. 30, 2019 | (6,646,000) | ||||||||
Balance at Jun. 30, 2019 | $ 291,024 | $ 0 | $ 62 | $ (66,240) | $ 234,410 | $ (2,693) | $ 125,485 | $ 152,265 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Exercise of common stock options and release of RSUs (in shares) | 562,000 | ||||||||
Exercise of common stock options and release of RSUs | 25 | 25 | $ 1 | 24 | |||||
Reissuance of Treasury Stock (in shares) | 7,000 | ||||||||
Reissuance of Treasury Stock | 0 | 0 | $ 56 | (56) | |||||
Withholding tax on restricted stock units (in shares) | (181,000) | ||||||||
Withholding tax on restricted stock units | (1,509) | (1,509) | (1,509) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 400,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | 3,325 | 3,325 | $ 1 | 3,324 | |||||
Share-based compensation expense | 9,854 | 9,854 | 9,854 | ||||||
Net income (loss) attributable to AOS | (6,596) | (6,596) | (6,596) | ||||||
Cumulative translation adjustment | (2,434) | (2,434) | |||||||
Net income (loss) attributable to noncontrolling interest | (11,661) | (11,661) | |||||||
Foreign currency translation adjustment | (2,405) | ||||||||
Foreign currency translation adjustment | (4,839) | ||||||||
Net income (loss) | (18,257) | ||||||||
Balance (in shares) at Jun. 30, 2020 | 0 | ||||||||
Balance (in shares) at Jun. 30, 2020 | 31,944,000 | ||||||||
Balance (in shares) at Jun. 30, 2020 | (6,639,000) | ||||||||
Balance at Jun. 30, 2020 | 293,689 | $ 0 | $ 64 | $ (66,184) | 246,103 | (5,127) | 118,833 | 138,199 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | 431,888 | ||||||||
Exercise of common stock options and release of RSUs (in shares) | 857,000 | ||||||||
Exercise of common stock options and release of RSUs | 1,699 | 1,699 | $ 1 | 1,698 | |||||
Reissuance of Treasury Stock (in shares) | 14,000 | ||||||||
Reissuance of Treasury Stock | 66 | 66 | $ 120 | (54) | |||||
Withholding tax on restricted stock units (in shares) | (225,000) | ||||||||
Withholding tax on restricted stock units | (6,924) | (6,924) | (6,924) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 399,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | 3,327 | 3,327 | $ 1 | 3,326 | |||||
Share-based compensation expense | 12,190 | 12,190 | 12,190 | ||||||
Net income (loss) attributable to AOS | 58,116 | 58,116 | 58,116 | ||||||
Cumulative translation adjustment | 7,442 | 7,442 | |||||||
Net income (loss) attributable to noncontrolling interest | (1,827) | (1,827) | |||||||
Restricted stock units settlement in connection with service | 3,600 | 3,600 | 3,600 | ||||||
Foreign currency translation adjustment | 6,748 | ||||||||
Foreign currency translation adjustment | 14,190 | ||||||||
Net income (loss) | $ 56,289 | ||||||||
Balance (in shares) at Jun. 30, 2021 | 0 | 0 | |||||||
Balance (in shares) at Jun. 30, 2021 | 32,975,000 | 32,975,000 | |||||||
Balance (in shares) at Jun. 30, 2021 | (6,625,000) | (6,625,000) | |||||||
Balance at Jun. 30, 2021 | $ 373,205 | 373,205 | $ 0 | $ 66 | $ (66,064) | 259,993 | 2,315 | 176,895 | 143,120 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | 516,325 | ||||||||
Exercise of common stock options and release of RSUs (in shares) | 652,000 | ||||||||
Exercise of common stock options and release of RSUs | 898 | 898 | $ 1 | 897 | |||||
Reissuance of Treasury Stock (in shares) | 8,000 | ||||||||
Reissuance of Treasury Stock | 0 | 0 | $ 64 | (64) | |||||
Withholding tax on restricted stock units (in shares) | (183,000) | ||||||||
Withholding tax on restricted stock units | (8,641) | (8,641) | (8,641) | ||||||
Issuance of common shares under Employee Stock Purchase Plan (in shares) | 544,000 | ||||||||
Issuance of common shares under Employee Stock Purchase Plan | 5,245 | 5,245 | $ 1 | 5,244 | |||||
Share-based compensation expense | 31,058 | 31,058 | 31,058 | ||||||
Net income (loss) attributable to AOS | 453,163 | 453,163 | 453,163 | ||||||
Cumulative translation adjustment | 558 | 558 | |||||||
Net income (loss) attributable to noncontrolling interest | 20 | 20 | |||||||
Restricted stock units settlement in connection with service | 400 | 400 | 400 | ||||||
Foreign currency translation adjustment | 749 | ||||||||
Foreign currency translation adjustment | 1,307 | ||||||||
Deconsolidation of noncontrolling interest | (145,682) | (1,793) | (1,793) | (143,889) | |||||
Net income (loss) | $ 453,183 | ||||||||
Balance (in shares) at Jun. 30, 2022 | 0 | 0 | |||||||
Balance (in shares) at Jun. 30, 2022 | 33,988,000 | 33,988,000 | |||||||
Balance (in shares) at Jun. 30, 2022 | (6,617,000) | (6,617,000) | |||||||
Balance at Jun. 30, 2022 | $ 854,093 | $ 854,093 | $ 0 | $ 68 | $ (66,000) | $ 288,951 | $ 1,080 | $ 629,994 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | $ 854,093 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ 453,183 | $ 56,289 | $ (18,257) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Gain on deconsolidation of the JV Company | (399,093) | 0 | 0 |
Loss on changes of equity interest in the JV Company, net | 3,140 | 0 | 0 |
Deferred income tax on deconsolidation and changes of equity interest in the JV Company | 29,973 | 0 | 0 |
Depreciation and amortization | 42,851 | 52,685 | 45,090 |
Equity method investment loss from equity investee | 2,629 | 0 | 0 |
Share-based compensation expense | 31,324 | 15,324 | 10,454 |
Deferred income taxes, net | 1,592 | 1,551 | 85 |
(Gain) loss on disposal of property and equipment | 18 | 426 | (102) |
Impairment of privately-held investment | 0 | 0 | 600 |
Changes in assets and liabilities: | |||
Accounts receivable | (30,085) | (22,517) | 11,024 |
Inventories | (57,416) | (18,765) | (22,793) |
Other current and long-term assets | (9,408) | (5,843) | 27,306 |
Payable related to equity investee, net | 48,192 | 0 | 0 |
Accounts payable | 23,755 | (528) | (1,777) |
Income taxes payable | (1,687) | 1,660 | (270) |
Income taxes payable on deconsolidation and changes of equity interest in the JV Company | 3,490 | 0 | 0 |
Accrued and other liabilities | 76,407 | 48,462 | 10,955 |
Net cash provided by operating activities | 218,865 | 128,744 | 62,315 |
Cash flows from investing activities | |||
Proceeds from sale of equity interest in the JV Company | 26,347 | 0 | 0 |
Deconsolidation of cash and cash equivalents of the JV Company | (20,734) | 0 | 0 |
Purchases of property and equipment | (138,014) | (72,700) | (62,398) |
Proceeds from sale of property and equipment | 135 | 42 | 295 |
Government grant related to equipment | 1,444 | 119 | 1,254 |
Net cash used in investing activities | (130,822) | (72,539) | (60,849) |
Cash flows from financing activities | |||
Withholding tax on restricted stock units | (8,641) | (6,924) | (1,509) |
Proceeds from exercise of stock options and ESPP | 6,143 | 5,092 | 3,350 |
Proceeds from borrowings | 64,276 | 65,876 | 96,232 |
Repayments of borrowings | (35,748) | (66,584) | (49,394) |
Principal payments on capital leases | (4,176) | (16,451) | (11,028) |
Net cash provided by (used in) financing activities | 21,854 | (18,991) | 37,651 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (59) | 4,895 | (708) |
Net increase in cash, cash equivalents and restricted cash | 109,838 | 42,109 | 38,409 |
Cash, cash equivalents and restricted cash at beginning of year | 204,813 | 162,704 | 124,295 |
Cash, cash equivalents and restricted cash at end of year | 314,651 | 204,813 | 162,704 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 3,404 | 5,641 | 2,223 |
Cash paid for income taxes | 5,768 | 970 | 2,258 |
Supplemental disclosures of non-cash investing and financing information: | |||
Property and equipment purchased but not yet paid | 62,165 | 20,204 | 17,370 |
Reissuance of treasury stock | 64 | 120 | 56 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | 314,352 | 202,412 | 158,536 |
Restricted cash | 299 | 233 | 2,190 |
Restricted cash - long-term | 0 | 2,168 | 1,978 |
Total cash, cash equivalents, and restricted cash | $ 314,651 | $ 204,813 | $ 162,704 |
The Company and Significant Acc
The Company and Significant Accounting Policies | 12 Months Ended |
Jun. 30, 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 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 consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and a subsidiary in which it had a controlling interest until December 1, 2021. As of December 2, 2021, the Company ceased having control over this subsidiary. Therefore, the Company deconsolidated this subsidiary as of that date. Subsequently, the Company has accounted for it using the equity method of accounting. All intercompany account balances and transactions have been eliminated. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Reclassification Certain reclassifications of prior period presentation to conform to current period presentation have been made with no changes made to balance sheet, income statement or statement of cash flows subtotals. Joint Venture On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture, (the “JV Company”), for the purpose of constructing and operating a power semiconductor packaging, testing and 12-inch wafer fabrication facility in the Liangjiang New Area of Chongqing, China (the “JV Transaction”). As of December 1, 2021, the Company owned 51%, and the Chongqing Funds owned 49%, 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. If both parties agree that the termination of the JV Company is the best interest of each party or the JV Company is bankrupt or insolvent where either party may terminate early, after paying the debts of the JV Company, the remaining assets of the JV Company shall be paid to the Chongqing Funds to cover the principal of its total paid-in contributions plus interest at 10% simple annual rate prior to distributing the balance of the JV Company's assets to the Company. The JV Company has reached its targeted production of assembly and testing. 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, on December 30, 2021, 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 the JV Company 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 Company 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 be shut down and production was halted beginning in early April. Transportation suspension in and out of Shanghai also interrupted the shipping of raw materials and finished parts to and from our facilities. We received permission to reopen our facilities partially in early May. We gradually ramped up production at these facilities in May and returned to normal operation in June 2022. The suspension of our Shanghai facilities, and the subsequent partial resumption of production, reduced our ability to complete orders from our customers in a timely manner, which adversely affected our revenue and results of operation for the three months ended June 30, 2022. Risks and Uncertainties The Company is subject to certain risks and uncertainties. The Company believes changes in any of the following areas could have a material adverse effect on the Company's future financial position or results of operations or cash flows: the timing and success of new product development, including market receptiveness, operation of in-house manufacturing facilities, litigation or claims against the Company based on intellectual property, patent, product regulatory or other factors, competition from other products, general economic conditions, the inability to attract and retain qualified employees, lack of control to the JV Company and ultimately to sustain profitable operations, risks associated with doing business in China, and ability to diversify products and develop digital business; the general state of the U.S., China and world economies; the highly cyclical nature of the industries the Company serves; the loss of any of its larger customers; restrictions on the Company’s ability to sell to foreign customers due to trade laws, regulations and requirements; disruptions of the supply chain of components needed for our products; inability to obtain additional financing; inability to meet certain debt covenants; fundamental changes in the technology underlying the Company’s products; successful and timely completion of product design efforts; and new product design introductions by competitors. Additional risks and uncertainties that the Company is unaware of, or that the Company currently believes are not material, may also become important factors that adversely affect its business. The Company's revenue limited by its ability to utilize wafer production and packaging and testing capacity from its in-house facilities and obtain adequate wafer supplies from third-party foundries. The Company recently entered into a new agreement with the JV Company pursuant to which the JV Company agrees to provide us with a guaranteed supply of a fixed number of wafers until December 2023. Currently the Company's main third-party foundry is Shanghai Hua Hong Grace Electronic Company Limited, or HHGrace, located in Shanghai, China. HHGrace has been manufacturing wafers for the Company since 2002. HHGrace manufactured approximately 10.3%, 11.5% and 12.7% of the wafers used in the Company's products for the fiscal years ended June 30, 2022, 2021 and 2020, respectively. Although the Company believes that its volume of production allows the Company to secure favorable pricing and priority in allocation of capacity in its third-party foundries, if the foundries' capacities are constrained due to market demands, HHGrace, together with other foundries from which the Company purchases wafers, may not be willing or able to satisfy all of the Company's manufacturing requirements on a timely basis and/or at favorable prices. The Company is also subject to the risks of service disruptions and raw material shortages by its foundries. Such disruptions, shortages and price increases could harm the Company’s operating results. In addition, manufacturing facilities' capacity affects the Company's gross margin because the Company has certain fixed costs associated with its Oregon Fab and the JV Company, as well as in-house packaging and testing facilities. If the Company fails to utilize its manufacturing facilities' capacity at a desirable level, its financial condition and results of operations will be adversely affected. Use of Estimates The preparation of the 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. Foreign Currency Transactions and Translation Most of the Company's principal subsidiaries use U.S. dollars as their functional currency because their transactions are primarily conducted and settled in U.S. dollars. All of their revenues and a significant portion of their operating expenses are denominated in U.S. dollars. The functional currencies for the Company's in-house packaging and testing facilities in China are U.S. dollars, and a majority of their capital expenditures are denominated in U.S. dollars. Foreign currency transactions are translated into the functional currencies using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses, resulting from the settlement of such transactions and from the re-measurement of monetary assets and liabilities denominated in foreign currencies using exchange rates at balance sheet date and non-monetary assets and liabilities using historical exchange rates, are recognized in the consolidated statements of operations. For the Company's subsidiaries which use the local currency as their functional currency, their results and financial position are translated into U.S. dollars using exchange rates at balance sheet dates for assets and liabilities and using average exchange rates for income and expenses items. The resulting translation differences are presented as a separate component of accumulated other comprehensive income (loss) and noncontrolling interest in the consolidated statements of equity. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents primarily consist of cash on hand and short-term bank deposits with original maturities of three months or less. Cash equivalents are highly liquid investments with stated maturities of three months or less as of the dates of purchase. The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities. Cash and cash equivalents are maintained with reputable major financial institutions. If, due to current economic conditions or other factors, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk. Deposits with these banks may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk. The Company maintains restricted cash in connection with cash balances temporarily restricted for regular business operations, including the possibility of a dispute with a vendor. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s consolidated balance sheets. As of June 30, 2022 and 2021, the amount of restricted cash was $0.3 million and $2.4 million, respectively. Accounts Receivable, net The allowance for doubtful accounts is based on assessment of the collectability of accounts receivable from customers. The Company reviews the allowance by considering factors such as historical collection experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. The Company writes off a receivable and charges against its recorded allowance when it has exhausted its collection efforts without success. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Fair Value of Financial Instruments The fair value of cash equivalents is based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short-term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure and terms of the debts. Inventories The Company carries inventories at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Cost includes semiconductor wafer and raw materials, labor, depreciation expenses and other manufacturing expenses and overhead, and packaging and testing fees paid to third parties if subcontractors are used. Valuation of inventories are based on the Company's periodic review of inventory quantities on hand as compared with its sales forecasts, historical usage, aging of inventories, production yield levels and current product selling prices. If actual market conditions are less favorable than those forecasted by management, additional future inventory write-downs may be required that could adversely affect the Company's operating results. Adjustments to inventory once established are not reversed until the related inventory has been sold or scrapped. Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditures that are directly attributable to the acquisition of the items and the costs incurred to make the assets ready for their intended use. Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 years Manufacturing machinery and equipment 8 to 10 years Equipment and tooling 3 to 5 years Computer hardware and software 3 to 5 years Office furniture and equipment 5 years Leasehold and building improvements 2 to 20 years Vehicle 5 years Equipment and construction in progress represent equipment received but the necessary installation has not been fully performed or building construction and leasehold improvements have been started but not yet completed. Equipment and construction in progress are stated at cost and transferred to respective asset class when fully completed and ready for their intended use. Internal-use software development costs are capitalized to the extent that the costs are directly associated with the development of identifiable and unique software products controlled by the Company that will probably generate economic benefits beyond one year. Costs incurred during the application development stage are required to be capitalized. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Costs include employee costs incurred and fees paid to outside consultants for the software development and implementation. Internally developed software is amortized over its estimated useful life of three Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized as selling, general and administrative expenses in the consolidated statements of operations. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. 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 fiscal year ended June 30, 2022, the Company reduced interest expense by $0.9 million, property, plant and equipment by $1.4 million, and operating expenses by $0.2 million. During the fiscal year ended June 30, 2021, the Company reduced interest expense by $3.0 million, property, plant and equipment by $0.1 million, and operating expenses by $3.7 million. During the fiscal year ended June 30, 2020, the Company reduced interest expenses by $6.1 million, property, plant and equipment by $1.3 million, and operating expenses by $4.7 million. Long-lived Assets The Company reviews all long-lived assets whenever events or changes in circumstance indicate that these assets may not be recoverable. When evaluating long-lived assets, if the Company concludes that the estimated undiscounted cash flows attributable to the assets are less than their carrying value, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values, which could adversely affect our results of operations. There was no impairment of long-lived assets for fiscal years 2022, 2021 and 2020. 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, as determined by the agreed upon shipping terms, 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, current expectations, and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets. 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. 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 consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and long-term finance leases liabilities on the 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 determined 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 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. Product Warranty The Company provides a standard one-year warranty for the products from the date of purchase by the end customers. The Company accrues for estimated warranty costs at the time revenue is recognized. The Company's warranty obligation is affected by product failure rates, labor and material costs for replacing defective parts, related freight costs for failed parts and other quality assurance costs. The Company monitors its product returns for warranty claims and maintains warranty reserves based on historical experiences and anticipated warranty claims known at the time of estimation. Shipping and Handling Costs Shipping and handling costs are included in cost of goods sold. Research and Development Research and development costs are expensed as incurred. Provision for Income Taxes Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and experimentation tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. The Company considers all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. The Company considers evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income. The Financial Accounting Standards Board (FASB), issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result. The Company's provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties. Share-based Compensation Expense The Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-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 |
Equity Method Investment in Equ
Equity Method Investment in Equity Investee | 12 Months Ended |
Jun. 30, 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”), 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, the Company recorded a gain on deconsolidation of $399.1 million during the fiscal year ended June 30, 2022 in the 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, on December 30, 2021, 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 the JV Company, representing approximately 7.82% of post-transaction outstanding equity interests of the JV Company, 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 June 30, 2022, the percentage of outstanding JV Company equity interest beneficially owned by the Company was reduced to 42.2%. The net loss associated with these sales of JV Company equity interest held by the Company were recorded in the fiscal year ended June 30, 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 fiscal year ended June 30, 2022, the Company recorded $2.6 million of its equity in loss of the JV Company, using lag reporting. Summarized Financial Information The following table presents summarized financial information for the JV Company as of and for the period from December 2, 2021 through March 31, 2022, using lag reporting (in thousands): As of March 31, 2022 Current assets $ 198,323 Non-current assets $ 364,777 Current liabilities $ 251,988 Non-current liabilities $ 76,207 For the periods of December 2, 2021 to March 31, 2022 Revenue $ 68,972 Gross loss $ 870 Operating expenses $ 2,280 Net loss $ 6,197 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsAs of June 30, 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 for 8-inch wafer products to AOS. Due to the right of offset of receivables and payables with the JV Company, as of June 30, 2022, AOS recorded the net amount of $29.0 million as a payable related to equity investee, net, in the Consolidated Balance Sheet. Since the December 2, 2021 deconsolidation of the JV Company and through the fiscal year ended June 30, 2022, the Company purchased finished goods and services of $117.6 million from the JV Company and AOS provided the JV Company with $36.4 million of 8-inch wafers. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited | Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding, plus potential shares of common stock during the period. Potential shares of common stock include dilutive shares attributable to the assumed exercise of share options, ESPP shares and vesting of RSUs using the treasury stock method and contingent issuances of common shares related to convertible preferred shares, if dilutive. Under the treasury stock method, potential common shares outstanding are not included in the computation of diluted net income per share if their effect is anti-dilutive. The following table presents the calculation of basic and diluted net income (loss) per share attributable to common shareholders: Year Ended June 30, 2022 2021 2020 (in thousands, except per share data) Numerator: Net income (loss) attributable to Alpha and Omega Semiconductor Limited $ 453,163 $ 58,116 $ (6,596) Denominator: Basic: Weighted average number of common shares used to compute basic net income per share 26,764 25,786 24,840 Diluted: Weighted average number of common shares used to compute basic net income per share 26,764 25,786 24,840 Effect of potentially dilutive securities: Stock options, RSUs and ESPP shares 1,439 1,486 — Weighted average number of common shares used to compute diluted net income per share 28,203 27,272 24,840 Net income (loss) per share attributable to Alpha and Omega Semiconductor Limited: Basic $ 16.93 $ 2.25 $ (0.27) Diluted $ 16.07 $ 2.13 $ (0.27) The following potential dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive: Year Ended June 30, 2022 2021 2020 (in thousands) Employee stock options and RSUs 277 193 2,028 ESPP 21 71 834 Total potential dilutive securities 298 264 2,862 |
Concentration of Credit Risk an
Concentration of Credit Risk and Significant Customers | 12 Months Ended |
Jun. 30, 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 of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers. Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit standards, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its financial assets to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available. Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts: Year Ended June 30, Percentage of revenue 2022 2021 2020 Customer A 24.6 % 28.7 % 29.3 % Customer B 39.7 % 35.4 % 35.5 % June 30, Percentage of accounts receivable 2022 2021 Customer A 24.6 % 12.4 % Customer B 36.4 % 22.1 % Customer C * 21.9 % Customer D 12.0 % * * Less than 10% |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Accounts receivable, net June 30, 2022 2021 (in thousands) Accounts receivable $ 84,442 $ 48,234 Less: Allowance for price adjustments (18,731) (12,415) Less: Allowance for doubtful accounts (30) (30) Accounts receivable, net $ 65,681 $ 35,789 Inventories June 30, 2022 2021 (in thousands) Raw materials $ 67,960 $ 68,900 Work in-process 80,720 68,824 Finished goods 9,360 16,569 $ 158,040 $ 154,293 Other current assets June 30, 2022 2021 (in thousands) VAT receivable $ 737 $ 1,539 Other prepaid expenses 3,954 1,465 Prepaid insurance 2,590 2,615 Prepaid maintenance 826 1,670 Prepayments to supplier 257 2,540 Prepaid income tax 2,086 2,221 Interest receivable 25 2,207 Customs deposit — 270 Other receivables 745 68 $ 11,220 $ 14,595 Property, plant and equipment, net June 30, 2022 2021 (in thousands) Land $ 4,877 $ 4,877 Building 16,691 71,454 Manufacturing machinery and equipment 287,574 515,320 Equipment and tooling 28,052 27,017 Computer equipment and software 46,758 41,518 Office furniture and equipment 2,820 3,814 Leasehold improvements 35,254 74,733 Land use rights — 9,319 422,026 748,052 Less: accumulated depreciation (233,340) (348,749) 188,686 399,303 Equipment and construction in progress 129,980 37,674 Property, plant and equipment, net $ 318,666 $ 436,977 Total depreciation expense was $39.9 million, $49.3 million and $43.9 million for fiscal year 2022, 2021 and 2020, respectively. The Company capitalized $0.3 million, $0.3 million and $1.0 million of software development costs during the fiscal year 2022, 2021 and 2020, respectively. Amortization of capitalized software development costs was $0.4 million in fiscal year 2022, $0.5 million in fiscal year 2021 and $0.5 million in fiscal year 2020. Unamortized capitalized software development costs in each of the periods presented at June 30, 2022 and 2021 were $0.8 million and $1.2 million, respectively. Other long-term assets June 30, 2022 2021 (in thousands) Prepayments for property and equipment $ 6,890 $ 14,882 Investments in privately held companies 100 100 Customs deposit 1,708 1,120 Deposit with supplier 6,396 — Other long-term deposits 18 927 Office leases deposits 1,012 1,100 Other 1,553 740 $ 17,677 $ 18,869 Intangible assets, net June 30, 2022 2021 (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 (9,674) (6,314) 9,781 13,141 Goodwill 269 269 Intangible assets, net $ 10,050 $ 13,410 The Company is amortizing intangible assets of patents and technology rights related to a license agreement with STMicroelectronices International N.V. Amortization expense for intangible assets was $3.4 million, $3.4 million and $0.1 million for the years ended June 30, 2022, 2021 and 2020, respectively. The estimated useful lives for patents and technology rights and trade name were five years and ten years, respectively. Customer relationships are fully amortized. Estimated future minimum amortization expense of intangible assets is as follows (in thousands): Year ending June 30, 2023 $ 3,286 2024 3,249 2025 3,246 $ 9,781 Accrued liabilities June 30, 2022 2021 (in thousands) Accrued compensation and benefits $ 34,681 $ 32,756 Warranty accrual 2,650 2,795 Stock rotation accrual 4,798 3,917 Accrued professional fees 2,659 3,017 Accrued inventory 2,491 1,138 Accrued facilities related expenses 2,421 2,536 Accrued property, plant and equipment 20,485 8,688 Other accrued expenses 5,159 6,793 Customer deposit 40,578 7,139 ESPP payable 971 715 $ 116,893 $ 69,494 The activity in the warranty accrual, included in accrued liabilities is as follows: Year Ended June 30, 2022 2021 2020 (in thousands) Beginning balance $ 2,795 $ 709 $ 623 Addition 1,127 2,443 895 Utilization (1,272) (357) (809) Ending balance $ 2,650 $ 2,795 $ 709 The activity in the stock rotation accrual, included in accrued liabilities is as follows: Year Ended June 30, 2022 2021 2020 (in thousands) Beginning balance $ 3,917 $ 3,358 $ 1,921 Addition 5,817 4,742 9,441 Utilization (4,936) (4,183) (8,004) Ending balance $ 4,798 $ 3,917 $ 3,358 Other long-term liabilities June 30, 2022 2021 (in thousands) Deferred payroll taxes $ — $ 1,219 Customer deposits 70,301 42,000 Computer software liabilities 8,302 — Other — 904 Other long-term liabilities $ 78,603 $ 44,123 Customer deposits are payments received from customers for securing future product shipments. As of June 30, 2022, $34.5 million were from Customer A and $21.9 million were from Customer B, and $13.9 million were from other customers. As of June 30, 2021, $21.0 million were from Customer A and $21.0 million were from Customer B. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term bank borrowing 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 matured on February 14, 2021 and was 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 $1.6 million, at an interest rate of 3.85% per annum, with principal due on November 18, 2022. As of June 30, 2022, there was $1.6 million outstanding balance under the loan. 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 June 30, 2022, the total outstanding balance of this loan was $0.5 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. The Borrower was in compliance with these covenants as of June 30, 2022. As of June 30, 2022, there was no outstanding balance and the Company had unused credit of approximately $8.0 million. Debt financing In September 2021, Jireh Semiconductor Incorporated (“Jireh”) entered into a financing arrangement agreement with a company (“Lender”) for the lease and purchase of a machinery equipment manufactured by a supplier. The total purchase price of this machinery equipment was euro 12.0 million, or $12.8 million based on the currency exchange rate between the euro and U.S. Dollar on June 30, 2022. In April 2021, Jireh made a down payment of euro 6.0 million, representing 50% of the total purchase price of the equipment, to the supplier. In June 2022, the equipment was delivered to Jireh after Lender paid 40% of the total purchase price, for euro 4.8 million, to the supplier on behalf of Jireh. Based on the terms of the agreement between Jireh and Lender, after the installation and configuration of the equipment for its intended use, Lender will make the remaining 10% payment for the total purchase price and reimburse Jireh for the down payment made to the supplier. By that time, the title of the equipment will be transferred to Lendor. This agreement has a 5 years term, after which Jireh has the option to purchase the equipment for $1. Jireh is required to make a monthly payment of interest at an implied interest rate of 4.75% per annum to Lessor. Principal payment is required to be paid monthly after the completion of the title transfer. The financing arrangement is secured by this machneray equipment which had the carrying amount of $12.8 million as of June 30, 2022. As of June 30, 2022, the outstanding balance of this debt financing was $5.0 million. Long-term bank borrowings On August 18, 2021, 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 years 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 June 30, 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 an amount of $17.8 million. The obligation under the loan agreement is secured by certain real estate assets of Jireh and guaranteed by the Company. The loan has a five-year term and matures on June 1, 2023. Beginning June 1, 2018, Jireh made consecutive monthly payments of principal and interest to the Bank. The outstanding principal shall accrue interest at a fixed rate of 5.04% per annum on the basis of a 360-day year. The loan agreement contains customary restrictive covenants and includes certain financial covenants that require the Company to maintain, on a consolidated basis, specified financial ratios. 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 June 30, 2022. As of June 30, 2022, the outstanding balance of the term loan was $14.2 million. On August 15, 2017, Jireh entered into a credit agreement with the Bank that provided a term loan in an amount up to $30.0 million for the purpose of purchasing certain equipment for the fabrication facility located in Oregon. The obligation under the credit agreement is secured by substantially all assets of Jireh and guaranteed by the Company. The credit agreement has a five-year term and matures on August 15, 2022. In January 2018 and July 2018, Jireh drew down on the loan in the amount of $13.2 million and $16.7 million, respectively. Beginning in October 2018, Jireh is required to pay to the Bank on each payment date, the outstanding principal amount of the loan in monthly installments. The loan accrues interest based on an adjusted London Interbank Offered Rate ("LIBOR") as defined in the credit agreement, plus specified applicable margin in the range of 1.75% to 2.25%, based on the outstanding balance of the loan. The credit agreement contains customary restrictive covenants and includes certain financial covenants that require the Company to maintain, on a consolidated basis, specified financial ratios and fixed charge coverage ratio. 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 June 30, 2022. As of June 30, 2022, the outstanding balance of the term loan was $1.9 million. At June 30, 2022, maturities of short-term debt and long-term debt were as follows (in thousands): Year ending June 30, 2023 $ 25,638 2024 9,952 2025 9,999 2026 10,047 2027 12,348 Thereafter 234 Total principal of debt 68,218 Less: debt issuance costs (169) Total principal of debt, less debt issuance costs $ 68,049 Short-term Debt Long-term Debt Total Principal amount $ 25,638 $ 42,580 $ 68,218 Less: debt issuance costs (75) (94) (169) Total debt, less debt issuance costs $ 25,563 $ 42,486 $ 68,049 |
Leases
Leases | 12 Months Ended |
Jun. 30, 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 consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the consolidated balance sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the 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 Consolidated Balance Sheet at June 30, 2022 due to the deconsolidation of the JV Company on December 2, 2021. The Company does not record leases on the consolidated balance sheet with a term of one year or less. The components of the Company’s operating and finance lease expenses are as follows for the years presented (in thousands): Fiscal Year Ended June 30, 2022 Fiscal Year Ended June 30, 2021 Operating leases: Fixed rent expense $ 6,262 $ 6,760 Variable rent expense 946 815 Finance lease: Amortization of equipment 908 2,200 Interest 976 2,168 Short-term leases: Short-term lease expenses 205 221 Total lease expenses $ 9,297 $ 12,164 Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): June 30, 2022 June 30, 2021 Operating Leases : ROU assets associated with operating leases $ 23,674 $ 34,660 Finance Lease: Property, plant and equipment, gross $ 4,831 $ 114,404 Accumulated depreciation (136) (96,470) Property, plant and equipment, net $ 4,695 $ 17,934 Weighted average remaining lease term (in years) Operating leases 7.42 8.44 Finance lease 5.00 1.72 Weighted average discount rate Operating leases 4.27 % 4.67 % Finance lease 4.76 % 5.46 % Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands): Fiscal Year Ended June 30, 2022 Fiscal Year Ended June 30, 2021 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,480 $ 6,496 Operating cash flows from finance lease $ 976 $ 2,168 Financing cash flows from finance lease $ 4,176 $ 16,451 Non-cash investing and financing information: Operating lease right-of-use assets obtained in exchange for lease obligations $ 5,852 $ 5,585 Future minimum lease payments are as follows as of June 30, 2022 (in thousands): Operating Leases Finance Leases 2023 $ 5,206 $ 993 2024 4,053 1,083 2025 3,222 1,083 2026 3,176 1,083 2027 3,147 1,076 Thereafter 10,337 — Total minimum lease payments 29,141 5,318 Less amount representing interest (4,413) (584) Total lease liabilities $ 24,728 $ 4,734 |
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 consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the consolidated balance sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the 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 Consolidated Balance Sheet at June 30, 2022 due to the deconsolidation of the JV Company on December 2, 2021. The Company does not record leases on the consolidated balance sheet with a term of one year or less. The components of the Company’s operating and finance lease expenses are as follows for the years presented (in thousands): Fiscal Year Ended June 30, 2022 Fiscal Year Ended June 30, 2021 Operating leases: Fixed rent expense $ 6,262 $ 6,760 Variable rent expense 946 815 Finance lease: Amortization of equipment 908 2,200 Interest 976 2,168 Short-term leases: Short-term lease expenses 205 221 Total lease expenses $ 9,297 $ 12,164 Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): June 30, 2022 June 30, 2021 Operating Leases : ROU assets associated with operating leases $ 23,674 $ 34,660 Finance Lease: Property, plant and equipment, gross $ 4,831 $ 114,404 Accumulated depreciation (136) (96,470) Property, plant and equipment, net $ 4,695 $ 17,934 Weighted average remaining lease term (in years) Operating leases 7.42 8.44 Finance lease 5.00 1.72 Weighted average discount rate Operating leases 4.27 % 4.67 % Finance lease 4.76 % 5.46 % Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands): Fiscal Year Ended June 30, 2022 Fiscal Year Ended June 30, 2021 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,480 $ 6,496 Operating cash flows from finance lease $ 976 $ 2,168 Financing cash flows from finance lease $ 4,176 $ 16,451 Non-cash investing and financing information: Operating lease right-of-use assets obtained in exchange for lease obligations $ 5,852 $ 5,585 Future minimum lease payments are as follows as of June 30, 2022 (in thousands): Operating Leases Finance Leases 2023 $ 5,206 $ 993 2024 4,053 1,083 2025 3,222 1,083 2026 3,176 1,083 2027 3,147 1,076 Thereafter 10,337 — Total minimum lease payments 29,141 5,318 Less amount representing interest (4,413) (584) Total lease liabilities $ 24,728 $ 4,734 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Shares The Company's Bye-laws, as amended, authorized the Company to issue 100,000,000 common shares with par value of $0.002. Each common share is entitled to one vote. The holders of common shares are also entitled to receive dividends whenever funds are legally available and when and if declared by the board of directors. No dividends had been declared as of June 30, 2022 In September 2017, the board of directors approved a repurchase program (the “Repurchase Program”) that allowed the Company to repurchase its common shares from the open market pursuant to a pre-established Rule 10b5-1 trading plan or through privately negotiated transactions up to an aggregate of $30.0 million. The amount and timing of any repurchases under the Repurchase Program depend on a number of factors, including but not limited to, the trading price, volume and availability of the Company's common shares. Shares repurchased under this program are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company's stock-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses is charged to retained earnings. During fiscal year 2022, 2021 and 2020, the Company did not repurchase any shares pursuant to the repurchase program. As of June 30, 2022, the Company had repurchased an aggregate of 6,784,648 shares for a total cost of $67.3 million, at an average price of $9.92 per share, excluding fees and related expenses, since inception of the program. No repurchased shares have been retired. Of the 6,784,648 repurchased shares, 167,395 shares with a weighted average repurchase price of $10.06 per share, were reissued at an average price of $5.00 per share for option exercises and vested restricted stock units (“RSU”). As of June 30, 2022, $13.4 million remain available under the share repurchase program. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jun. 30, 2020 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Share-based Compensation 2018 Omnibus Incentive Plan The 2009 Share Option/Share Issuance Plan (the “2009 Plan”) was approved in September 2009 at the annual general meeting of shareholders in connection with the Company's IPO. At the annual general meeting of shareholders in November 2018, the 2009 Plan was approved to be terminated and the 2018 Omnibus Incentive Plan (the “2018 Plan”) was effective. No further awards will be made under the 2009 Plan. The 2018 Plan authorized the board of directors to grant incentive share options, non-statutory share options and restricted shares to employees, directors, non-employee directors and consultants of the Company and its subsidiaries for up to 2,065,000 common shares. The 2018 Plan does not include an evergreen authorization Therefore, the Company is not permitted to increase the number of shares reserved in the share pool without obtaining further shareholder approval. Outstanding shares under the 2018 Plan and awards granted under the 2009 Plan that expire, are forfeited or cancelled or terminate prior to the issuance of the shares subject to those awards or are settled in cash will be available for subsequent issuance under the 2018 Plan. At the annual general meeting of shareholders in November 2021, the 2018 Plan was approved to increase by 1,000,000 shares to a total of 3,065,000 shares. As of June 30, 2022, 537,260 shares were available for grant under the 2018 Plan. Beginning with the 2014 Annual Shareholders Meeting, on the date of each annual shareholders meeting, each individual who commences service as a non-employee Board member by reason of his or her election to the Board at such annual meeting and each individual who is to continue to serve as a non-employee Board member, whether or not that individual is standing for re-election to the Board at that particular annual meeting, will automatically be granted an award in the form of restricted share units covering that number of common shares determined by dividing one hundred twenty-five thousand dollars ($125,000) by the average fair market value per share for the ninety (90)-day period preceding the grant date, up to a maximum of 10,000 shares. Under the 2018 Plan, incentive share options and RSU are to be granted at a price that is not less than 100% and nonstatutory share options are to be granted at not less than 85% of the fair value of the common shares, at the date of grant for employees and consultants. Options and RSUs generally vest over a four-year to five-year period, and are exercisable for a maximum period of ten years after the date of grant. The fair value of RSU, including time-based restricted stock units and performance-based restricted stock units is based on the market price of the Company's share on the date of grant. Time-based Restricted Stock Units (“TRSU”) The following table summarizes the Company's TRSU activities: Number of Restricted Stock Weighted Average Weighted Average Aggregate Intrinsic Value Nonvested at June 30, 2019 906,341 $ 14.09 1.62 $ 8,465,225 Granted 505,440 $ 8.51 Vested (455,893) $ 13.53 Forfeited (23,750) $ 13.19 Nonvested at June 30, 2020 932,138 $ 11.36 1.66 $ 10,141,661 Granted 722,873 $ 29.85 Vested (567,087) $ 15.70 Forfeited (34,400) $ 14.88 Nonvested at June 30, 2021 1,053,524 $ 21.60 1.73 $ 32,016,594 Granted 597,381 $ 45.83 Vested (410,670) $ 20.54 Forfeited (70,626) $ 26.79 Nonvested at June 30, 2022 1,169,609 $ 34.03 1.73 $ 38,994,764 Performance-based Restricted Stock Units (“PRSU”) In March each year since fiscal year 2017, the Company granted PRSU to certain personnel. The number of shares to be ultimately earned under the PRSU is determined based on the level of attainment of predetermined financial goals. The PRSU vests in four equal annual installments from the first anniversary date after the grant date if certain predetermined financial goals were met. The Company recorded $4.6 million, $2.3 million and $1.5 million of expenses for these PRSUs during the years ended June 30, 2022, 2021 and 2020, respectively. During the quarter 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 expense in the condensed consolidated statements of operations. As of June 30, 2022 and 2021, the Company recorded nil and $0.1 million such expens es in the other current liabilities, respectively. During the fiscal years ended June 30, 2022, 2021 and 2020, the Company recorded $0.3 million, $3.1 million and $0.6 million of non-cash compensation expense, respectively. As of June 30, 2022, the Company granted RSUs valued at $4.0 million to participants, which were fully vested due to achievement of certain objective measures. The following table summarizes the Company’s PRSU activities: Number of Performance-based Restricted Stock Weighted Average Weighted Average Aggregate Intrinsic Value Nonvested at June 30, 2019 596,724 $ 13.95 1.88 $ 5,573,402 Granted 155,000 $ 7.36 Vested (110,659) $ 16.68 Forfeited (298,290) $ 11.32 Nonvested at June 30, 2020 342,775 $ 12.38 1.60 $ 3,729,392 Granted 165,500 $ 36.27 Vested (148,211) $ 14.24 Forfeited (6,240) $ 17.23 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 (7,250) $ 40.33 Nonvested at June 30, 2022 389,375 $ 36.56 1.85 $ 12,981,763 Market-based Restricted Stock Units (“MSUs”) 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 $4.5 million expenses for these MSUs during the fiscal year ended June 30, 2022. During the quarter ended September 30, 2018, the Company granted 1.3 million market-based restricted stock units (“MSUs”) to certain personnel. The number of shares to be earned at the end of the performance period is determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2019 to December 31, 2021 as well as the recipients remaining in continuous service with the Company through such period. The MSUs vest in four equal annual installments after the end of performance period. 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 modified MSUs were valued immediately before and after the modification, using Morte Carlo simulation pricing model. The Morte Carlo simulation pricing model applied the following assumptions for pre-modification conditions: risk-free interest rate of 0.13%, expected term of 1.3 years, expected volatility of 66.7% and dividend yield of 0%; and for post-modification conditions: risk-free interest rate of 0.14%, expected term of 2.3 years, expected volatility of 59.1% and dividend yield of 0%. 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 approximately $1.6 million, $1.2 million and $0.6 million of expense for these MSUs during the years ended June 30, 2022, 2021 and 2020, respectively. Stock Option The following table summarizes the Company's stock option activities: Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Aggregate Shares Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2019 876,478 $ 10.98 3.06 Granted — $ — Exercised (2,500) $ 10.50 $ 4,726 Canceled or forfeited (230,000) $ 17.11 Outstanding at June 30, 2020 643,978 $ 8.79 2.89 Granted — $ — Exercised (156,103) $ 11.31 $ 1,272,291 Canceled or forfeited — $ — Outstanding at June 30, 2021 487,875 $ 7.99 2.32 Granted — $ — Exercised (98,000) $ 9.15 $ 3,936,675 Canceled or forfeited — $ — Outstanding at June 30, 2022 389,875 $ 7.70 1.53 $ 9,997,364 Options vested and expected to vest 389,875 $ 7.70 1.53 $ 9,997,364 Exercisable at June 30, 2022 389,875 $ 7.70 1.53 $ 9,997,364 The aggregate intrinsic value for options outstanding at June 30, 2022 in the table above is based on the Company’s common stock closing price on June 30, 2022. The 2018 Employee Share Purchase Plan At the annual general meeting of shareholders in November 2018, the 2018 Employee Share Purchase Plan (“Purchase Plan” or “ESPP”) Plan was approved, under which 1,430,000 common shares are available for issuance. The Purchase Plan does not include an evergreen authorization, therefore the Company is not permitted to increase the number of shares reserved in the share pool without obtaining further shareholder approval. At the general meeting of shareholders in November 2021, the ESPP Plan was approved to increase from 1,430,000 shares to 2,500,000 shares. The Purchase Plan provided for a series of overlapping offering periods with a duration of 24 months, generally beginning on May 15 and November 15 of each year. The Purchase Plan allows employees to purchase common shares through payroll deductions of up to 15% of their eligible compensation. Such deductions will accumulate over a six-month accumulation period without interest. After such accumulation period, common shares will be purchased at a price equal to 85% of the fair market value per share on either the first day of the offering period or the last date of the accumulation period, whichever is less. The maximum number of shares that may be purchased by a participant on any purchase date may not exceed 875 shares for a total of 3,500 shares per a 24- month offering period. In addition, no participant may purchase more than $25,000 worth of common stock in any one calendar year period. No more than 300,000 common shares may be purchased by all participants on any purchase date. The ESPP is compensatory and results in compensation expense. The fair values of common shares to be issued under the ESPP were determined using the Black-Scholes option pricing model with the following assumptions: Year Ended June 30, 2022 2021 2020 Volatility rate 66.4% - 69.9% 63.1% - 68.5% 46.4% - 58.3% Risk-free interest rate 0.3% - 2.1% 0.1% - 0.2% 0.2% - 1.6% Expected term 1.3 years 1.3 years 1.3 years Dividend yield —% —% —% The weighted-average estimated fair value of employee stock purchase rights granted pursuant to the ESPP during the years ended June 30, 2022, 2021 and 2020 was $16.48, $11.11 and $4.33 per share, respectively. Share-based Compensation Expenses The total share-based compensation expense related to TRSU, PSUs, MSUs, stock options and ESPP described above, recognized in the consolidated statements of operations for the years presented was as follows: Year Ended June 30, 2022 2021 2020 (in thousands) Cost of goods sold $ 5,125 $ 1,756 $ 1,530 Research and development 7,049 5,352 2,895 Selling, general and administrative 19,150 8,216 6,029 $ 31,324 $ 15,324 $ 10,454 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company maintains a 401(k) retirement plan for the benefit of qualified employees in the U.S. Employees who participate may elect to make salary deferral contributions to the plan up to 100% of the employees' eligible salary subject to annual Internal Revenue Code maximum limitations. The employer's contribution is discretionary. Effective from April 1, 2022, the Company begins to match 50% of employee contribution up to 4% of eligible compensation for a 2% maximum match. During the fiscal year ended June 30, 2022, the Company made employer match contributions of $0.3 million. The Company makes mandatory contributions for its employees to the respective local governments in terms of retirement, medical insurance and unemployment insurance, where applicable, according to labor and social security laws and regulations of the countries and areas in which the Company operates. The retirement contribution rate is 7.7% in the U.S., 14.0% to 16.0% in China, and 6.0% in Taiwan. The Company has no obligations for the payment of such social benefits beyond the required contributions as set out above. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is comprised of: Year Ended June 30, 2022 2021 2020 (in thousands) U.S. federal taxes: Current $ 645 $ 31 $ (1,673) Deferred 2,260 1,955 22 Non-U.S. taxes: Current 7,749 2,344 1,940 Deferred 28,599 (396) 58 State taxes, net of federal benefit: Current 5 1 1 Total provision for income taxes $ 39,258 $ 3,935 $ 348 The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows (in percentage): Year Ended June 30, 2022 2021 2020 United States statutory rate 21.0 % 21.0 % 21.0 % Stock-based compensation 0.0 0.1 — Foreign taxes, net (14.3) (14.4) (36.1) Outside basis difference on equity method investment 1.2 — — Research and development credit (0.3) (2.4) 8.0 Non-deductible expenses 0.5 2.4 (1.0) U.S. Tax Act deferred tax re-measurement — — 6.2 Foreign Derived Intangible Income Deduction (0.3) — — Other 0.1 (0.2) — 7.9 % 6.5 % (1.9) % The domestic and foreign components of income before taxes are: Year Ended June 30, 2022 2021 2020 (in thousands) U.S. operations $ 16,684 $ 9,622 $ 3,549 Non-U.S. operations 478,386 50,602 (21,458) Loss before income taxes $ 495,070 $ 60,224 $ (17,909) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: June 30, 2022 2021 (in thousands) Deferred tax assets: Accrued compensation $ 5,742 $ 3,954 Net operating loss carryforwards 61 22,539 Depreciation 4,365 7,924 Tax credits 15,079 15,550 Operating lease liabilities 5,807 7,292 Capitalized intangible assets — 9,982 Accruals and reserves 643 1,113 Total deferred tax assets 31,697 68,354 Valuation allowance (5,755) (41,474) Total deferred tax assets, net of valuation allowance 25,942 26,880 Deferred tax liabilities: Depreciation and amortization (18,909) (17,193) Right of use assets (5,579) (6,968) Investments (29,619) — Total deferred tax liabilities (54,107) (24,161) Net deferred tax assets/(liabilities) $ (28,165) $ 2,719 The breakdown between deferred tax assets and liabilities is as follows: June 30, 2022 2021 (in thousands) Long-term deferred tax assets $ 592 $ 5,167 Long-term deferred tax liabilities (28,757) (2,448) Net deferred tax assets/(liabilities) $ (28,165) $ 2,719 The Company’s valuation allowance related to deferred income taxes as reflected in the consolidated balance sheets was $5.8 million and $41.5 million as of June 30, 2022 and 2021, respectively. The change in valuation allowance for June 30, 2022 and 2021 was a decrease of $35.7 million and an increase of $3.6 million, respectively. At June 30, 2022 and 2021, the Company provided a valuation allowance for its state research and development credit carryforward deferred tax assets of $5.8 million for both years, as it generated more state tax credits each year than it can utilize. The Company intends to maintain a valuation allowance equal to the state research and development credit carryforwards in excess of the state net deferred tax liabilities on all other state book/tax differences and net operating loss carryforward. At June 30, 2021, the Company provided a valuation allowance mainly for the net operating loss, fixed asset and intangible asset related to deferred tax assets of the JV Company totaling $35.7 million. The valuation allowance related to the deferred tax assets of the JV Company was reduced to $0 at June 30, 2022 as a result of the deconsolidation of the JV Company in December 2021. At June 30, 2022, the Company had federal research and development tax credit carryforwards of approximately $8.9 million. The federal tax credits begin to expire in 2030, if not utilized. At June 30, 2022, the Company had $0.9 million of state net operating loss carryforwards and had tax credit carryforwards of approximately $7.8 million. Approximately $0.2 million of the state tax credits begin to expire in 2023, if not utilized. The remaining $7.6 million of the state tax credits carryforward indefinitely. The Company has not provided for withholding taxes on the undistributed earnings of its foreign subsidiaries because it intends to reinvest such earnings indefinitely. However, we have recorded a deferred tax liability of $29.6 million at June 30, 2022 related to our investment in the JV Company. As of June 30, 2022, the cumulative amount of undistributed earnings of its foreign entities considered permanently reinvested is $314.7 million. The determination of the unrecognized deferred tax liability on these earnings is not practicable. Should the Company decide to remit this income to its Bermuda parent company in a future period, its provision for income taxes may increase materially in that period. A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2019 to June 30, 2022 is as follows: Year Ended June 30, 2022 2021 2020 (in thousands) Balance at beginning of year $ 7,645 $ 7,126 $ 7,150 Additions based on tax positions related to the current year 1,121 677 333 Reductions based on tax positions related to prior years (40) (41) (114) Reductions due to lapse of applicable statute of limitations (117) (117) (243) Balance at end of year $ 8,609 $ 7,645 $ 7,126 At June 30, 2022, the total unrecognized tax benefits of $8.6 million included $6.6 million of unrecognized tax benefits that have been netted against the related deferred tax assets. The remaining $2.0 million of unrecognized tax benefits was recorded within long-term income tax payable on the Company's consolidated balance sheet as of June 30, 2022. The Company cannot reasonably estimate the timing and amount of potential cash settlements on the unrecognized tax benefits. The total unrecognized tax benefits of $8.6 million at June 30, 2022 included $5.6 million that, if recognized, would reduce the effective income tax rate in future periods. It is reasonably possible that the Company will recognize approximately $0.01 million reduction to its uncertain tax positions during the next twelve months, related to potential expiration of the relevant statute of limitations. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. The amount of interest and penalties accrued at June 30, 2022 was $0.2 million, of which $32 thousand was recognized in the year ended June 30, 2022. The amount of interest and penalties accrued at June 30, 2021 was $0.1 million, of which $5 thousand was recognized in the year ended June 30, 2021. The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2022 remain open to examination by U.S. federal and state tax authorities. The tax years 2014 to 2022 remain open to examination by foreign tax authorities. The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. U.S. Tax Cuts and Jobs Act, Enacted December 22, 2017 On December 22, 2017, the United States enacted tax legislation commonly known as the Tax Cuts and Jobs Act (“the Tax Act”), which significantly changed the existing U.S. tax laws, including, but not limited to, (1) a reduction in the corporate tax rate from 35% to 21%, (2) a move from a worldwide tax system toward a territorial system through a “participation exemption” deduction for certain foreign-source dividends, (3) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized, (4) bonus depreciation that allows for full expensing of qualified property, (5) creating a new limitation on deductible interest expense and (6) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. The Company is not currently subject to the Base Erosion and Anti-Abuse (BEAT) tax, which is a tax imposed on certain entities who make payments to their non U.S. affiliates, where such payments reduce the U.S. tax base. The BEAT tax is imposed at a rate of 10% on Adjusted Taxable Income, excluding certain payments to foreign related entities. It is an incremental tax over and above the corporate income tax and is recorded as a period cost. It is possible that this tax could be applicable in future periods, which would cause an increase to the effective tax rate and cash taxes. U.S. Coronavirus Aid, Relief and Economic Security Act” (“CARES Act”), Enacted March 27, 2020 On March 27, 2020, the United States enacted the CARES Act, which made the changes to existing U.S. tax laws, including, but not limited to, (1) allowing U.S. federal net operating losses originated in the 2018, 2019 or 2020 tax years to be carried back five years to recover taxes paid based upon taxable income in the prior five years, (2) eliminated the 80% of taxable income limitation on net operating losses for the 2018, 2019 and 2020 tax years (the 80% limitation will be reinstated for tax years after 2020), (3) accelerating the refund of prior year alternative minimum tax credits, (4) modifying the bonus depreciation for qualified improvement property and (5) modifying the limitation on deductible interest expense. As a result of the ability to carryback net operating losses from the June 2018 and June 2019 years to the June 2015 to June 2017 tax years, net operating losses which were previously tax-effected using the current 21% U.S. federal tax rate were revalued to the U.S. tax rates in effect for the June 2015 to June 2017 tax years due to the ability of receiving tax refunds for the taxes paid in these years. Accordingly, we reported a discrete tax benefit of $1.1 million in the third quarter of fiscal year 2020 related to the re-measurement of the net operating losses that could be realized via the new net operating loss carryback provisions. “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. “The Chip and Science Act of 2022”, Enacted August 2, 2022 In August 2022 the U.S. enacted the Chip and Science Act of 2022 (the Chips Act). The Chips Act provides incentives to semiconductor chip manufacturers in the United States, including providing a 25% manufacturing investment credits for investments in semiconductor manufacturing property placed in service after December 31, 2022, for which construction begins before January 1, 2027. Property investments qualify for the 25% credit if, among other requirements, the property is integral to the operation of an advanced manufacturing facility, defined as having a primary purpose of manufacturing semiconductors or semiconductor manufacturing equipment. Currently, we are evaluating the impact of the Chips Act to us. Altera Litigation 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 June 2022. The Company will continue to monitor ongoing developments and potential impact to its financial statements. |
Segment and Geographic informat
Segment and Geographic information | 12 Months Ended |
Jun. 30, 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: Year Ended June 30, 2022 2021 2020 (in thousands) Hong Kong $ 630,238 $ 537,553 $ 390,478 China 120,978 107,325 64,058 South Korea 11,802 5,497 3,303 United States 12,470 5,492 4,465 Other countries 2,064 1,035 2,605 $ 777,552 $ 656,902 $ 464,909 During the fiscal year ended June 30, 2022, the Company corrected an immaterial error to reduce revenues in Hong Kong by $0.5 million, and to increase the revenues in China by $0.5 million for the fiscal year ended June 30, 2021. The following is a summary of revenue by product type: Year Ended June 30, 2022 2021 2020 (in thousands) Power discrete $ 545,135 $ 482,718 $ 391,941 Power IC 220,882 161,726 66,360 Packaging and testing services 11,535 12,458 6,608 $ 777,552 $ 656,902 $ 464,909 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: June 30, 2022 2021 (in thousands) China $ 105,326 $ 350,387 United States 232,731 118,756 Other countries 4,283 2,494 $ 342,340 $ 471,637 |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Jun. 30, 2022 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Restricted Net Assets | Restricted Net Assets Laws and regulations in China permit payments of dividends by the Company's subsidiaries in China only out of their retained earnings, if any, as determined in accordance with China accounting standards and regulations. Each China subsidiary is also required to set aside at least 10% of its after-tax profit, if any, based on China accounting standards each year to its statutory reserves until the cumulative amount of such reserves reaches 50% of its registered capital. As a result of these China laws and regulations, the Company's China subsidiaries are restricted in their abilities to transfer a portion of their net assets to the Company. As of June 30, 2022 and 2021, such restricted portion amounted to approximately $92.4 million and $209.9 million, or 10.8% and 50.4%, of our total consolidated net assets attributable to the Company, respectively. As the Company's China subsidiaries are not revenue generating operating units, the Company does not expect to repatriate funds in the form of dividends, loans or advances from its China subsidiaries for working capital and other funding purposes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase commitments As of June 30, 2022 and 2021, the Company had approximately $89.9 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 June 30, 2022 and 2021, the Company had approximately $63.4 million, and $90.0 million, respectively, of commitments for the purchase of property and equipment. Other commitments See Notes 1, 7 and 8 to the Consolidated Financial Statements contained in this annual Report on Form 10-K for descriptions of commitments including Joint Venture, debt and leases. Contingencies and indemnities The Company has in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities. The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, the Company could incur significant costs in the defense of such claims and suffer adverse effects on its operations. As previously disclosed, 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” by the Department of Commerce (“DOC”) in May 2019. The Company is cooperating fully with federal authorities in the investigation. The Company has continued to respond to inquiries and requests from DOJ for documents and information relating to the investigation, and the matter is currently pending at DOJ, and DOJ has not provided the Company with any specific timeline or indication as to when the investigation will be concluded or resolved. In connection with this investigation, DOC previously requested the Company to suspend shipments of its products to Huawei. The Company complied with such request, and the Company has not shipped any product to Huawei after December 31, 2019. The Company continues to work with DOC to resolve this issue and requested DOC to grant permission to reinstate the Company’s shipments to Huawei. As part of this process and in response to DOC’s request, the Company provided certain documents and materials relating to the Company’s supply chain and shipment process to DOC, and DOC is currently reviewing this matter. DOC has not informed the Company of any specific timeline or schedule under which DOC will provide a response to the Company’s request. 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 June 30, 2022 and 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 maintain such insurance coverage at reasonable cost, if at all, in the future. Environmental matters The Company is subject to various federal, state, local, and foreign laws and regulations governing environmental matters, including the use, handling, discharge, and disposal of hazardous materials. The Company believes that it has been in material compliance with applicable environmental regulations and standards. Complying with current laws and regulations has not had a material adverse effect on the Company’s financial condition and results of operations. However, it is possible that additional environmental issues may arise in the future, which the Company cannot currently predict. |
Cybersecutiy Incident
Cybersecutiy Incident | 12 Months Ended |
Jun. 30, 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 financial impact of this incident was not material, and there were no changes to previously released financial results or financial statements. Immediately following the discovery, the Company commenced an investigation, contained the incident and implemented additional protective measures and internal control policies and procedures. The Company has also retained a professional cybersecurity investigation firm to conduct a full forensic analysis of the incident, and concluded that there were no evidence of malware, persistence mechanisms or other compromised exchange on-premises accounts within the Company's environment. In addition, there was no evidence to suggest that these accounts were accessed via the user agent that has the capability to synchronize or download email messages to the user’s local host. This incident appears to be isolated and its financial impact identified to date was not material. The Company believes that it had not incurred other damages and losses based on the conclusion of the full investigation. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Allowance Allowance Allowance for Doubtful for Price for Deferred Accounts Adjustments Tax Assets June 30, 2019 $ 30 $ 24,075 $ 35,420 Additions — 140,413 2,407 Reductions — (134,396) — June 30, 2020 $ 30 $ 30,092 $ 37,827 Additions — 178,902 3,647 Reductions — (196,579) — June 30, 2021 $ 30 $ 12,415 $ 41,474 Additions — 170,651 — Reductions — (164,335) (35,719) June 30, 2022 $ 30 $ 18,731 $ 5,755 |
The Company and Significant A_2
The Company and Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and a subsidiary in which it had a controlling interest until December 1, 2021. As of December 2, 2021, the Company ceased having control over this subsidiary. Therefore, the Company deconsolidated this subsidiary as of that date. Subsequently, the Company has accounted for it using the equity method of accounting. All intercompany account balances and transactions have been eliminated. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Reclassification Certain reclassifications of prior period presentation to conform to current period presentation have been made with no changes made to balance sheet, income statement or statement of cash flows subtotals. |
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 be shut down and production was halted beginning in early April. Transportation suspension in and out of Shanghai also interrupted the shipping of raw materials and finished parts to and from our facilities. We received permission to reopen our facilities partially in early May. We gradually ramped up production at these facilities in May and returned to normal operation in June 2022. The suspension of our Shanghai facilities, and the subsequent partial resumption of production, reduced our ability to complete orders from our customers in a timely manner, which adversely affected our revenue and results of operation for the three months ended June 30, 2022. Risks and Uncertainties The Company is subject to certain risks and uncertainties. The Company believes changes in any of the following areas could have a material adverse effect on the Company's future financial position or results of operations or cash flows: the timing and success of new product development, including market receptiveness, operation of in-house manufacturing facilities, litigation or claims against the Company based on intellectual property, patent, product regulatory or other factors, competition from other products, general economic conditions, the inability to attract and retain qualified employees, lack of control to the JV Company and ultimately to sustain profitable operations, risks associated with doing business in China, and ability to diversify products and develop digital business; the general state of the U.S., China and world economies; the highly cyclical nature of the industries the Company serves; the loss of any of its larger customers; restrictions on the Company’s ability to sell to foreign customers due to trade laws, regulations and requirements; disruptions of the supply chain of components needed for our products; inability to obtain additional financing; inability to meet certain debt covenants; fundamental changes in the technology underlying the Company’s products; successful and timely completion of product design efforts; and new product design introductions by competitors. Additional risks and uncertainties that the Company is unaware of, or that the Company currently believes are not material, may also become important factors that adversely affect its business. The Company's revenue limited by its ability to utilize wafer production and packaging and testing capacity from its in-house facilities and obtain adequate wafer supplies from third-party foundries. The Company recently entered into a new agreement with the JV Company pursuant to which the JV Company agrees to provide us with a guaranteed supply of a fixed number of wafers until December 2023. Currently the Company's main third-party foundry is Shanghai Hua Hong Grace Electronic Company Limited, or HHGrace, located in Shanghai, China. HHGrace has been manufacturing wafers for the Company since 2002. HHGrace manufactured approximately 10.3%, 11.5% and 12.7% of the wafers used in the Company's products for the fiscal years ended June 30, 2022, 2021 and 2020, respectively. Although the Company believes that its volume |
Use of Estimates | Use of Estimates The preparation of the 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. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation Most of the Company's principal subsidiaries use U.S. dollars as their functional currency because their transactions are primarily conducted and settled in U.S. dollars. All of their revenues and a significant portion of their operating expenses are denominated in U.S. dollars. The functional currencies for the Company's in-house packaging and testing facilities in China are U.S. dollars, and a majority of their capital expenditures are denominated in U.S. dollars. Foreign currency transactions are translated into the functional currencies using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses, resulting from the settlement of such transactions and from the re-measurement of monetary assets and liabilities denominated in foreign currencies using exchange rates at balance sheet date and non-monetary assets and liabilities using historical exchange rates, are recognized in the consolidated statements of operations. For the Company's subsidiaries which use the local currency as their functional currency, their results and financial position are translated into U.S. dollars using exchange rates at balance sheet dates for assets and liabilities and using average exchange rates for income and expenses items. The resulting translation differences are presented as a separate component of accumulated other comprehensive income (loss) and noncontrolling interest in the consolidated statements of equity. |
Cash and Cash Equivalents, Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents primarily consist of cash on hand and short-term bank deposits with original maturities of three months or less. Cash equivalents are highly liquid investments with stated maturities of three months or less as of the dates of purchase. The carrying amounts reported for cash and cash equivalents are considered to approximate fair values based upon their short maturities. Cash and cash equivalents are maintained with reputable major financial institutions. If, due to current economic conditions or other factors, one or more of the financial institutions with which the Company maintains deposits fails, the Company's cash and cash equivalents may be at risk. Deposits with these banks may exceed the amount of insurance provided on such deposits; however, these deposits typically may be redeemed upon demand and, therefore, bear minimal risk. |
Accounts Receivable | Accounts Receivable, netThe allowance for doubtful accounts is based on assessment of the collectability of accounts receivable from customers. The Company reviews the allowance by considering factors such as historical collection experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. The Company writes off a receivable and charges against its recorded allowance when it has exhausted its collection efforts without success. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of cash equivalents is based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short-term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure and terms of the debts. |
Inventories | Inventories The Company carries inventories at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Cost includes semiconductor wafer and raw materials, labor, depreciation expenses and other manufacturing expenses and overhead, and packaging and testing fees paid to third parties if subcontractors are used. Valuation of inventories are based on the Company's periodic review of inventory quantities on hand as compared with its sales forecasts, historical usage, aging of inventories, production yield levels and current product selling prices. If actual market conditions are less favorable than those forecasted by management, additional future inventory write-downs may be required that could adversely affect the Company's operating results. Adjustments to inventory once established are not reversed until the related inventory has been sold or scrapped. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditures that are directly attributable to the acquisition of the items and the costs incurred to make the assets ready for their intended use. Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 years Manufacturing machinery and equipment 8 to 10 years Equipment and tooling 3 to 5 years Computer hardware and software 3 to 5 years Office furniture and equipment 5 years Leasehold and building improvements 2 to 20 years Vehicle 5 years Equipment and construction in progress represent equipment received but the necessary installation has not been fully performed or building construction and leasehold improvements have been started but not yet completed. Equipment and construction in progress are stated at cost and transferred to respective asset class when fully completed and ready for their intended use. Internal-use software development costs are capitalized to the extent that the costs are directly associated with the development of identifiable and unique software products controlled by the Company that will probably generate economic benefits beyond one year. Costs incurred during the application development stage are required to be capitalized. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Costs include employee costs incurred and fees paid to outside consultants for the software development and implementation. Internally developed software is amortized over its estimated useful life of three Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized as selling, general and administrative expenses in the consolidated statements of operations. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. |
Government Grants | Government GrantsThe 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. |
Impairment of Long-Lived Assets | Long-lived Assets The Company reviews all long-lived assets whenever events or changes in circumstance indicate that these assets may not be recoverable. When evaluating long-lived assets, if the Company concludes that the estimated undiscounted cash flows attributable to the assets are less than their carrying value, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values, which could adversely affect our results of operations. |
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, as determined by the agreed upon shipping terms, 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, current expectations, and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets. 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. |
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 consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and long-term finance leases liabilities on the consolidated balance sheets. |
Product Warranty | Product Warranty The Company provides a standard one-year warranty for the products from the date of purchase by the end customers. The Company accrues for estimated warranty costs at the time revenue is recognized. The Company's warranty obligation is affected by product failure rates, labor and material costs for replacing defective parts, related freight costs for failed parts and other quality assurance costs. The Company monitors its product returns for warranty claims and maintains warranty reserves based on historical experiences and anticipated warranty claims known at the time of estimation. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in cost of goods sold. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Provision for Income Taxes | Provision for Income Taxes Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts. The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and experimentation tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. The Company considers all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. The Company considers evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income. The Financial Accounting Standards Board (FASB), issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result. The Company's provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties. |
Share-based Compensation Expense | Share-based Compensation Expense The Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-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 Black-Scholes option valuation model requires the input of subjective assumptions, including the expected term and stock price volatility. In addition, judgment is also required in estimating the number of stock-based awards that are expected to be forfeited. Forfeitures are estimated based on historical experience at the time of grant. Changes in estimated forfeitures are recognized in the period of change and impact the amount of stock compensation expenses to be recognized in future periods, which could be material if actual results differ significantly from estimates. |
Advertising | Advertising Advertising expenditures are expensed as incurred. Advertising expense was $0.2 million, $0.4 million and $0.7 million in the fiscal years ended June 30, 2022, 2021, and 2020, respectively. |
Comprehensive Income (loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards not yet adopted In November 2021, the 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 adoption will not have any impacts on the Company's 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 (1) whether a contract on the entity’s own equity 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 on July 1, 2021 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. |
The Company and Significant A_3
The Company and Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 years Manufacturing machinery and equipment 8 to 10 years Equipment and tooling 3 to 5 years Computer hardware and software 3 to 5 years Office furniture and equipment 5 years Leasehold and building improvements 2 to 20 years Vehicle 5 years Property, plant and equipment, net June 30, 2022 2021 (in thousands) Land $ 4,877 $ 4,877 Building 16,691 71,454 Manufacturing machinery and equipment 287,574 515,320 Equipment and tooling 28,052 27,017 Computer equipment and software 46,758 41,518 Office furniture and equipment 2,820 3,814 Leasehold improvements 35,254 74,733 Land use rights — 9,319 422,026 748,052 Less: accumulated depreciation (233,340) (348,749) 188,686 399,303 Equipment and construction in progress 129,980 37,674 Property, plant and equipment, net $ 318,666 $ 436,977 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net June 30, 2022 2021 (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 (9,674) (6,314) 9,781 13,141 Goodwill 269 269 Intangible assets, net $ 10,050 $ 13,410 |
Equity Method Investment in E_2
Equity Method Investment in Equity Investee (Tables) | 12 Months Ended |
Jun. 30, 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 The net loss associated with these sales of JV Company equity interest held by the Company were recorded in the fiscal year ended June 30, 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) |
Summarized financial information of joint venture | The following table presents summarized financial information for the JV Company as of and for the period from December 2, 2021 through March 31, 2022, using lag reporting (in thousands): As of March 31, 2022 Current assets $ 198,323 Non-current assets $ 364,777 Current liabilities $ 251,988 Non-current liabilities $ 76,207 For the periods of December 2, 2021 to March 31, 2022 Revenue $ 68,972 Gross loss $ 870 Operating expenses $ 2,280 Net loss $ 6,197 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited (Tables) | 12 Months Ended |
Jun. 30, 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 (loss) per share attributable to common shareholders: Year Ended June 30, 2022 2021 2020 (in thousands, except per share data) Numerator: Net income (loss) attributable to Alpha and Omega Semiconductor Limited $ 453,163 $ 58,116 $ (6,596) Denominator: Basic: Weighted average number of common shares used to compute basic net income per share 26,764 25,786 24,840 Diluted: Weighted average number of common shares used to compute basic net income per share 26,764 25,786 24,840 Effect of potentially dilutive securities: Stock options, RSUs and ESPP shares 1,439 1,486 — Weighted average number of common shares used to compute diluted net income per share 28,203 27,272 24,840 Net income (loss) per share attributable to Alpha and Omega Semiconductor Limited: Basic $ 16.93 $ 2.25 $ (0.27) Diluted $ 16.07 $ 2.13 $ (0.27) |
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 (loss) per share as their effect would have been anti-dilutive: Year Ended June 30, 2022 2021 2020 (in thousands) Employee stock options and RSUs 277 193 2,028 ESPP 21 71 834 Total potential dilutive securities 298 264 2,862 |
Concentration of Credit Risk _2
Concentration of Credit Risk and Significant Customers (Tables) | 12 Months Ended |
Jun. 30, 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: Year Ended June 30, Percentage of revenue 2022 2021 2020 Customer A 24.6 % 28.7 % 29.3 % Customer B 39.7 % 35.4 % 35.5 % June 30, Percentage of accounts receivable 2022 2021 Customer A 24.6 % 12.4 % Customer B 36.4 % 22.1 % Customer C * 21.9 % Customer D 12.0 % * * Less than 10% |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable, net June 30, 2022 2021 (in thousands) Accounts receivable $ 84,442 $ 48,234 Less: Allowance for price adjustments (18,731) (12,415) Less: Allowance for doubtful accounts (30) (30) Accounts receivable, net $ 65,681 $ 35,789 |
Schedule of Inventory, Current | Inventories June 30, 2022 2021 (in thousands) Raw materials $ 67,960 $ 68,900 Work in-process 80,720 68,824 Finished goods 9,360 16,569 $ 158,040 $ 154,293 |
Schedule of Other Current Assets | Other current assets June 30, 2022 2021 (in thousands) VAT receivable $ 737 $ 1,539 Other prepaid expenses 3,954 1,465 Prepaid insurance 2,590 2,615 Prepaid maintenance 826 1,670 Prepayments to supplier 257 2,540 Prepaid income tax 2,086 2,221 Interest receivable 25 2,207 Customs deposit — 270 Other receivables 745 68 $ 11,220 $ 14,595 |
Property, Plant and Equipment | Depreciation is provided for on a straight-line basis over the estimated useful lives of the related assets as follows: Building 20 years Manufacturing machinery and equipment 8 to 10 years Equipment and tooling 3 to 5 years Computer hardware and software 3 to 5 years Office furniture and equipment 5 years Leasehold and building improvements 2 to 20 years Vehicle 5 years Property, plant and equipment, net June 30, 2022 2021 (in thousands) Land $ 4,877 $ 4,877 Building 16,691 71,454 Manufacturing machinery and equipment 287,574 515,320 Equipment and tooling 28,052 27,017 Computer equipment and software 46,758 41,518 Office furniture and equipment 2,820 3,814 Leasehold improvements 35,254 74,733 Land use rights — 9,319 422,026 748,052 Less: accumulated depreciation (233,340) (348,749) 188,686 399,303 Equipment and construction in progress 129,980 37,674 Property, plant and equipment, net $ 318,666 $ 436,977 |
Schedule of Other Assets, Noncurrent | Other long-term assets June 30, 2022 2021 (in thousands) Prepayments for property and equipment $ 6,890 $ 14,882 Investments in privately held companies 100 100 Customs deposit 1,708 1,120 Deposit with supplier 6,396 — Other long-term deposits 18 927 Office leases deposits 1,012 1,100 Other 1,553 740 $ 17,677 $ 18,869 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net June 30, 2022 2021 (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 (9,674) (6,314) 9,781 13,141 Goodwill 269 269 Intangible assets, net $ 10,050 $ 13,410 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future minimum amortization expense of intangible assets is as follows (in thousands): Year ending June 30, 2023 $ 3,286 2024 3,249 2025 3,246 $ 9,781 |
Schedule of Accrued Liabilities | Accrued liabilities June 30, 2022 2021 (in thousands) Accrued compensation and benefits $ 34,681 $ 32,756 Warranty accrual 2,650 2,795 Stock rotation accrual 4,798 3,917 Accrued professional fees 2,659 3,017 Accrued inventory 2,491 1,138 Accrued facilities related expenses 2,421 2,536 Accrued property, plant and equipment 20,485 8,688 Other accrued expenses 5,159 6,793 Customer deposit 40,578 7,139 ESPP payable 971 715 $ 116,893 $ 69,494 |
Schedule of Product Warranty Liability | The activity in the warranty accrual, included in accrued liabilities is as follows: Year Ended June 30, 2022 2021 2020 (in thousands) Beginning balance $ 2,795 $ 709 $ 623 Addition 1,127 2,443 895 Utilization (1,272) (357) (809) Ending balance $ 2,650 $ 2,795 $ 709 |
Stock Rotation Accrual | The activity in the stock rotation accrual, included in accrued liabilities is as follows: Year Ended June 30, 2022 2021 2020 (in thousands) Beginning balance $ 3,917 $ 3,358 $ 1,921 Addition 5,817 4,742 9,441 Utilization (4,936) (4,183) (8,004) Ending balance $ 4,798 $ 3,917 $ 3,358 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities June 30, 2022 2021 (in thousands) Deferred payroll taxes $ — $ 1,219 Customer deposits 70,301 42,000 Computer software liabilities 8,302 — Other — 904 Other long-term liabilities $ 78,603 $ 44,123 Customer deposits are payments received from customers for securing future product shipments. As of June 30, 2022, $34.5 million were from Customer A and $21.9 million were from Customer B, and $13.9 million were from other customers. As of June 30, 2021, $21.0 million were from Customer A and $21.0 million were from Customer B. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Fiscal Year Maturity Schedule | At June 30, 2022, maturities of short-term debt and long-term debt were as follows (in thousands): Year ending June 30, 2023 $ 25,638 2024 9,952 2025 9,999 2026 10,047 2027 12,348 Thereafter 234 Total principal of debt 68,218 Less: debt issuance costs (169) Total principal of debt, less debt issuance costs $ 68,049 Short-term Debt Long-term Debt Total Principal amount $ 25,638 $ 42,580 $ 68,218 Less: debt issuance costs (75) (94) (169) Total debt, less debt issuance costs $ 25,563 $ 42,486 $ 68,049 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Operating and Finance Lease Expense | The components of the Company’s operating and finance lease expenses are as follows for the years presented (in thousands): Fiscal Year Ended June 30, 2022 Fiscal Year Ended June 30, 2021 Operating leases: Fixed rent expense $ 6,262 $ 6,760 Variable rent expense 946 815 Finance lease: Amortization of equipment 908 2,200 Interest 976 2,168 Short-term leases: Short-term lease expenses 205 221 Total lease expenses $ 9,297 $ 12,164 Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate): June 30, 2022 June 30, 2021 Operating Leases : ROU assets associated with operating leases $ 23,674 $ 34,660 Finance Lease: Property, plant and equipment, gross $ 4,831 $ 114,404 Accumulated depreciation (136) (96,470) Property, plant and equipment, net $ 4,695 $ 17,934 Weighted average remaining lease term (in years) Operating leases 7.42 8.44 Finance lease 5.00 1.72 Weighted average discount rate Operating leases 4.27 % 4.67 % Finance lease 4.76 % 5.46 % Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands): Fiscal Year Ended June 30, 2022 Fiscal Year Ended June 30, 2021 Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,480 $ 6,496 Operating cash flows from finance lease $ 976 $ 2,168 Financing cash flows from finance lease $ 4,176 $ 16,451 Non-cash investing and financing information: Operating lease right-of-use assets obtained in exchange for lease obligations $ 5,852 $ 5,585 |
Schedule of Operating Lease Liability Maturities | Future minimum lease payments are as follows as of June 30, 2022 (in thousands): Operating Leases Finance Leases 2023 $ 5,206 $ 993 2024 4,053 1,083 2025 3,222 1,083 2026 3,176 1,083 2027 3,147 1,076 Thereafter 10,337 — Total minimum lease payments 29,141 5,318 Less amount representing interest (4,413) (584) Total lease liabilities $ 24,728 $ 4,734 |
Schedule of Finance Lease Liability Maturities | Future minimum lease payments are as follows as of June 30, 2022 (in thousands): Operating Leases Finance Leases 2023 $ 5,206 $ 993 2024 4,053 1,083 2025 3,222 1,083 2026 3,176 1,083 2027 3,147 1,076 Thereafter 10,337 — Total minimum lease payments 29,141 5,318 Less amount representing interest (4,413) (584) Total lease liabilities $ 24,728 $ 4,734 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of Stock Option Activities | The following table summarizes the Company's stock option activities: Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Aggregate Shares Per Share Term (in years) Intrinsic Value Outstanding at June 30, 2019 876,478 $ 10.98 3.06 Granted — $ — Exercised (2,500) $ 10.50 $ 4,726 Canceled or forfeited (230,000) $ 17.11 Outstanding at June 30, 2020 643,978 $ 8.79 2.89 Granted — $ — Exercised (156,103) $ 11.31 $ 1,272,291 Canceled or forfeited — $ — Outstanding at June 30, 2021 487,875 $ 7.99 2.32 Granted — $ — Exercised (98,000) $ 9.15 $ 3,936,675 Canceled or forfeited — $ — Outstanding at June 30, 2022 389,875 $ 7.70 1.53 $ 9,997,364 Options vested and expected to vest 389,875 $ 7.70 1.53 $ 9,997,364 Exercisable at June 30, 2022 389,875 $ 7.70 1.53 $ 9,997,364 |
Restricted Stock Units Activity | The following table summarizes the Company's TRSU activities: Number of Restricted Stock Weighted Average Weighted Average Aggregate Intrinsic Value Nonvested at June 30, 2019 906,341 $ 14.09 1.62 $ 8,465,225 Granted 505,440 $ 8.51 Vested (455,893) $ 13.53 Forfeited (23,750) $ 13.19 Nonvested at June 30, 2020 932,138 $ 11.36 1.66 $ 10,141,661 Granted 722,873 $ 29.85 Vested (567,087) $ 15.70 Forfeited (34,400) $ 14.88 Nonvested at June 30, 2021 1,053,524 $ 21.60 1.73 $ 32,016,594 Granted 597,381 $ 45.83 Vested (410,670) $ 20.54 Forfeited (70,626) $ 26.79 Nonvested at June 30, 2022 1,169,609 $ 34.03 1.73 $ 38,994,764 The following table summarizes the Company’s PRSU activities: Number of Performance-based Restricted Stock Weighted Average Weighted Average Aggregate Intrinsic Value Nonvested at June 30, 2019 596,724 $ 13.95 1.88 $ 5,573,402 Granted 155,000 $ 7.36 Vested (110,659) $ 16.68 Forfeited (298,290) $ 11.32 Nonvested at June 30, 2020 342,775 $ 12.38 1.60 $ 3,729,392 Granted 165,500 $ 36.27 Vested (148,211) $ 14.24 Forfeited (6,240) $ 17.23 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 (7,250) $ 40.33 Nonvested at June 30, 2022 389,375 $ 36.56 1.85 $ 12,981,763 |
Employee Stock Purchase Plan, Valuation Assumptions | The ESPP is compensatory and results in compensation expense. The fair values of common shares to be issued under the ESPP were determined using the Black-Scholes option pricing model with the following assumptions: Year Ended June 30, 2022 2021 2020 Volatility rate 66.4% - 69.9% 63.1% - 68.5% 46.4% - 58.3% Risk-free interest rate 0.3% - 2.1% 0.1% - 0.2% 0.2% - 1.6% Expected term 1.3 years 1.3 years 1.3 years Dividend yield —% —% —% |
Share-based Compensation, Allocation of Recognized Period Costs | Share-based Compensation Expenses The total share-based compensation expense related to TRSU, PSUs, MSUs, stock options and ESPP described above, recognized in the consolidated statements of operations for the years presented was as follows: Year Ended June 30, 2022 2021 2020 (in thousands) Cost of goods sold $ 5,125 $ 1,756 $ 1,530 Research and development 7,049 5,352 2,895 Selling, general and administrative 19,150 8,216 6,029 $ 31,324 $ 15,324 $ 10,454 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for (benefit from) income taxes | The provision for income taxes is comprised of: Year Ended June 30, 2022 2021 2020 (in thousands) U.S. federal taxes: Current $ 645 $ 31 $ (1,673) Deferred 2,260 1,955 22 Non-U.S. taxes: Current 7,749 2,344 1,940 Deferred 28,599 (396) 58 State taxes, net of federal benefit: Current 5 1 1 Total provision for income taxes $ 39,258 $ 3,935 $ 348 |
Effective income tax rate reconciliation | The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows (in percentage): Year Ended June 30, 2022 2021 2020 United States statutory rate 21.0 % 21.0 % 21.0 % Stock-based compensation 0.0 0.1 — Foreign taxes, net (14.3) (14.4) (36.1) Outside basis difference on equity method investment 1.2 — — Research and development credit (0.3) (2.4) 8.0 Non-deductible expenses 0.5 2.4 (1.0) U.S. Tax Act deferred tax re-measurement — — 6.2 Foreign Derived Intangible Income Deduction (0.3) — — Other 0.1 (0.2) — 7.9 % 6.5 % (1.9) % |
Domestic and foreign components of income (loss) | The domestic and foreign components of income before taxes are: Year Ended June 30, 2022 2021 2020 (in thousands) U.S. operations $ 16,684 $ 9,622 $ 3,549 Non-U.S. operations 478,386 50,602 (21,458) Loss before income taxes $ 495,070 $ 60,224 $ (17,909) |
Components of deferred tax assets and liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: June 30, 2022 2021 (in thousands) Deferred tax assets: Accrued compensation $ 5,742 $ 3,954 Net operating loss carryforwards 61 22,539 Depreciation 4,365 7,924 Tax credits 15,079 15,550 Operating lease liabilities 5,807 7,292 Capitalized intangible assets — 9,982 Accruals and reserves 643 1,113 Total deferred tax assets 31,697 68,354 Valuation allowance (5,755) (41,474) Total deferred tax assets, net of valuation allowance 25,942 26,880 Deferred tax liabilities: Depreciation and amortization (18,909) (17,193) Right of use assets (5,579) (6,968) Investments (29,619) — Total deferred tax liabilities (54,107) (24,161) Net deferred tax assets/(liabilities) $ (28,165) $ 2,719 |
Schedule of deferred tax assets and liabilities, current and noncurrent | The breakdown between deferred tax assets and liabilities is as follows: June 30, 2022 2021 (in thousands) Long-term deferred tax assets $ 592 $ 5,167 Long-term deferred tax liabilities (28,757) (2,448) Net deferred tax assets/(liabilities) $ (28,165) $ 2,719 |
Unrecognized tax benefits rollforward | A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2019 to June 30, 2022 is as follows: Year Ended June 30, 2022 2021 2020 (in thousands) Balance at beginning of year $ 7,645 $ 7,126 $ 7,150 Additions based on tax positions related to the current year 1,121 677 333 Reductions based on tax positions related to prior years (40) (41) (114) Reductions due to lapse of applicable statute of limitations (117) (117) (243) Balance at end of year $ 8,609 $ 7,645 $ 7,126 |
Segment and Geographic inform_2
Segment and Geographic information (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The revenue by geographical location in the following tables is based on the country or region in which the products were shipped to: Year Ended June 30, 2022 2021 2020 (in thousands) Hong Kong $ 630,238 $ 537,553 $ 390,478 China 120,978 107,325 64,058 South Korea 11,802 5,497 3,303 United States 12,470 5,492 4,465 Other countries 2,064 1,035 2,605 $ 777,552 $ 656,902 $ 464,909 During the fiscal year ended June 30, 2022, the Company corrected an immaterial error to reduce revenues in Hong Kong by $0.5 million, and to increase the revenues in China by $0.5 million for the fiscal year ended June 30, 2021. The following is a summary of revenue by product type: Year Ended June 30, 2022 2021 2020 (in thousands) Power discrete $ 545,135 $ 482,718 $ 391,941 Power IC 220,882 161,726 66,360 Packaging and testing services 11,535 12,458 6,608 $ 777,552 $ 656,902 $ 464,909 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: June 30, 2022 2021 (in thousands) China $ 105,326 $ 350,387 United States 232,731 118,756 Other countries 4,283 2,494 $ 342,340 $ 471,637 |
The Company and Significant A_4
The Company and Significant Accounting Policies - Basis of Presentation Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Property and equipment purchased but not yet paid | $ 62,165 | $ 20,204 | $ 17,370 |
The Company and Significant A_5
The Company and Significant Accounting Policies - Risks and Uncertainties Narrative (Details) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cost of Goods and Service, Product and Service Benchmark | Supplier Concentration Risk | HHGrace | |||
Concentration Risk [Line Items] | |||
Percent of wafers manufactured | 10.30% | 11.50% | 12.70% |
The Company and Significant A_6
The Company and Significant Accounting Policies - Joint Venture Narrative (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2022 | Jan. 26, 2022 USD ($) | Jan. 26, 2022 CNY (¥) | Dec. 31, 2021 | Dec. 24, 2021 USD ($) | Dec. 24, 2021 CNY (¥) | Dec. 02, 2021 director | Dec. 01, 2021 | Nov. 30, 2021 director | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Related Party Transaction [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 42.20% | 42.20% | ||||||||||||
Proceeds from sale of equity interest in the JV Company | $ | $ 26,347 | $ 0 | $ 0 | |||||||||||
Equity Method Investment, Number of Appointments to Board of Directors | director | 3 | 4 | ||||||||||||
Equity Method Investment, Number of Directors | director | 7 | |||||||||||||
Corporate Joint Venture | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 42.20% | 45.80% | 48.80% | 50.90% | ||||||||||
Proceeds from sale of equity interest in the JV Company | $ | $ 16,924 | |||||||||||||
Third Party Investors | Corporate Joint Venture | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Proceeds from sale of equity interest in the JV Company | $ 80,000 | ¥ 509 | $ 9,400 | ¥ 60 | $ 16,900 | ¥ 108 | ||||||||
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Simple annual interest rate to noncontrolling interest if joint venture is early terminated and liquidated | 10% | |||||||||||||
Third Party Investors | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 42.20% | 42.20% | ||||||||||||
Third Party Investors | Third Party Investors | Corporate Joint Venture | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 7.82% | 7.82% | 1.10% | 1.10% | 2.10% | |||||||||
Proceeds from sale of equity interest in the JV Company | $ 80,000 | ¥ 509 | ||||||||||||
Third Party Investors | Employee Incentive Plan | Corporate Joint Venture | Employee Incentive Plan | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 3.99% | 3.99% | ||||||||||||
Parent Company | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 51% | |||||||||||||
Chongqing Funds | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 45.80% | 49% |
The Company and Significant A_7
The Company and Significant Accounting Policies - Restricted Cash Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Restricted cash | $ 0.3 | $ 2.4 |
The Company and Significant A_8
The Company and Significant Accounting Policies - Property and Equipment Useful Lives (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Minimum | Software Development | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 3 years |
Maximum | Software Development | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Manufacturing machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 8 years |
Manufacturing machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Equipment and tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Equipment and tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Office furntiture and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
The Company and Significant A_9
The Company and Significant Accounting Policies - Government Grants (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Government grants, reduction recorded to interest expense | $ 0.9 | $ 3 | $ 6.1 |
Government grants, reduction recorded to operating expenses | 0.2 | 3.7 | 4.7 |
Government grants, reduction recorded to property, plant and equipment | $ 1.4 | $ 0.1 | $ 1.3 |
The Company and Significant _10
The Company and Significant Accounting Policies - Government Grants Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Government grants, reduction recorded to interest expense | $ 0.9 | $ 3 | $ 6.1 |
Government grants, reduction recorded to operating expenses | 0.2 | 3.7 | 4.7 |
Government grants, reduction recorded to property, plant and equipment | $ 1.4 | $ 0.1 | $ 1.3 |
The Company and Significant _11
The Company and Significant Accounting Policies - Long-lived Assets Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
The Company and Significant _12
The Company and Significant Accounting Policies - Product Warranty Narrative (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Length of product warranty | 1 year |
The Company and Significant _13
The Company and Significant Accounting Policies - Advertising Expense Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising expense | $ 0.2 | $ 0.4 | $ 0.7 |
Equity Method Investment in E_3
Equity Method Investment in Equity Investee - Narrative (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2022 | Jan. 26, 2022 USD ($) | Jan. 26, 2022 CNY (¥) | Dec. 31, 2021 | Dec. 24, 2021 USD ($) | Dec. 24, 2021 CNY (¥) | Dec. 02, 2021 director | Dec. 01, 2021 | Nov. 30, 2021 director | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 42.20% | 42.20% | ||||||||||||
Equity Method Investment, Number of Appointments to Board of Directors | director | 3 | 4 | ||||||||||||
Equity Method Investment, Number of Directors | director | 7 | |||||||||||||
Loss on changes of equity interest in the JV Company, net | $ (3,140) | $ 0 | $ 0 | |||||||||||
Proceeds from sale of equity interest in the JV Company | 26,347 | 0 | 0 | |||||||||||
Equity method investment loss from equity investee | 2,629 | $ 0 | $ 0 | |||||||||||
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | Chongqing Funds | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 45.80% | 49% | ||||||||||||
Third Party Investors | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 42.20% | 42.20% | ||||||||||||
Corporate Joint Venture | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Joint venture cumulative percentage ownership after all transactions | 42.20% | 45.80% | 48.80% | 50.90% | ||||||||||
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 Investors | Corporate Joint Venture | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Proceeds from sale of equity interest in the JV Company | $ 80,000 | ¥ 509 | $ 9,400 | ¥ 60 | $ 16,900 | ¥ 108 | ||||||||
Third Party Investors | Corporate Joint Venture | Third Party Investors | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 7.82% | 7.82% | 1.10% | 1.10% | 2.10% | |||||||||
Proceeds from sale of equity interest in the JV Company | $ 80,000 | ¥ 509 | ||||||||||||
Employee Incentive Plan | Corporate Joint Venture | Third Party Investors | Employee Incentive Plan | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 3.99% | 3.99% |
Equity Method Investment in E_4
Equity Method Investment in Equity Investee - Schedule of Gain on Deconsolidation (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 01, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Cash received for sales of shares in the JV Company | $ 26,347 | $ 0 | $ 0 | ||
Gain on deconsolidation of the JV Company | 399,093 | 0 | 0 | ||
Gain on equity interest sold | (3,140) | 0 | 0 | ||
Share-based Payment Arrangement, Expense | (31,324) | $ (15,324) | $ (10,454) | ||
Corporate 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 | 399,100 | |||
Share-based Payment Arrangement, Expense | (8,116) | ||||
Loss on changes on equity interest of the JV Company, net | (3,140) | ||||
Corporate Joint Venture | 1.1% equity interest sold | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on equity interest sold | 475 | ||||
Corporate Joint Venture | 7.82% equity interest sold | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on equity interest sold | $ 4,501 |
Equity Method Investment in E_5
Equity Method Investment in Equity Investee - Equity Method Investment, Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Current assets | $ 549,592 | $ 407,322 | ||
Current liabilities | 267,722 | 233,230 | ||
Gross loss | 268,556 | 204,543 | $ 102,731 | |
Operating expenses | 508,996 | 452,359 | 362,178 | |
Net loss | $ 102,038 | $ 64,076 | $ (13,937) | |
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Current assets | $ 198,323 | |||
Non-current assets | 364,777 | |||
Current liabilities | 251,988 | |||
Non-current liabilities | 76,207 | |||
Revenue | 68,972 | |||
Gross loss | 870 | |||
Operating expenses | 2,280 | |||
Net loss | $ 6,197 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 7 Months Ended | |||||
Jun. 30, 2022 | Jan. 26, 2022 | Dec. 31, 2021 | Dec. 02, 2021 | Nov. 30, 2021 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||||
Joint venture cumulative percentage ownership after all transactions | 42.20% | |||||
Payable to related party | $ 29 | $ 29 | ||||
Corporate Joint Venture | ||||||
Related Party Transaction [Line Items] | ||||||
Joint venture cumulative percentage ownership after all transactions | 42.20% | 45.80% | 48.80% | 50.90% | ||
Transactions with related party | 117.6 | |||||
Revenue from related parties | $ 36.4 |
Net Income (Loss) Per Common _3
Net Income (Loss) 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 | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to AOS | $ 453,163 | $ 58,116 | $ (6,596) |
Basic: | |||
Weighted average number of common shares used to compute basic net income (loss) per share | 26,764 | 25,786 | 24,840 |
Effect of potentially dilutive securities: | |||
Stock options, RSUs and ESPP shares | 1,439 | 1,486 | 0 |
Weighted average number of common shares used to compute diluted net income (loss) per share | 28,203 | 27,272 | 24,840 |
Net income (loss) per share attributable to common shareholders: | |||
Basic (in dollars per share) | $ 16.93 | $ 2.25 | $ (0.27) |
Diluted (in dollars per share) | $ 16.07 | $ 2.13 | $ (0.27) |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited - Potential Dilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (USD per share) | 1,439 | 1,486 | 0 |
Potential dilutive securities (in shares) | 298 | 264 | 2,862 |
Employee stock options and RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential dilutive securities (in shares) | 277 | 193 | 2,028 |
Employee Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential dilutive securities (in shares) | 21 | 71 | 834 |
Concentration of Credit Risk _3
Concentration of Credit Risk and Significant Customers - Schedule of Concentration Risk (Details) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Minimum | |||
Concentration Risk [Line Items] | |||
Terms of credit sales, (in days) | 30 days | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Terms of credit sales, (in days) | 60 days | ||
Customer A | Revenue Benchmark | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.60% | 28.70% | 29.30% |
Customer A | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.60% | 12.40% | |
Customer B | Revenue Benchmark | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 39.70% | 35.40% | 35.50% |
Customer B | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 36.40% | 22.10% | |
Customer C | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21.90% | ||
Customer D | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 84,442 | $ 48,234 |
Less: Allowance for price adjustments | (18,731) | (12,415) |
Less: Allowance for doubtful accounts | (30) | (30) |
Accounts receivable, net | $ 65,681 | $ 35,789 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 67,960 | $ 68,900 |
Work in-process | 80,720 | 68,824 |
Finished goods | 9,360 | 16,569 |
Inventories | $ 158,040 | $ 154,293 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
VAT receivable | $ 737 | $ 1,539 |
Other prepaid expenses | 3,954 | 1,465 |
Prepaid insurance | 2,590 | 2,615 |
Prepaid maintenance | 826 | 1,670 |
Prepayments to supplier | 257 | 2,540 |
Prepaid income tax | 2,086 | 2,221 |
Interest receivable | 25 | 2,207 |
Customs deposit | 0 | 270 |
Other receivables | 745 | 68 |
Total other current assets | $ 11,220 | $ 14,595 |
Balance Sheet Components - Prop
Balance Sheet Components - Property, plant, and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | $ 422,026 | $ 748,052 | |
Less accumulated depreciation | (233,340) | (348,749) | |
Property, plant and equipment excluding equipment and construction in progress, net | 188,686 | 399,303 | |
Equipment and construction in progress | 129,980 | 37,674 | |
Property, plant and equipment, net | 318,666 | 436,977 | |
Depreciation expense | 39,900 | 49,300 | $ 43,900 |
Finance lease liabilities | 802 | 16,724 | |
Accumulated depreciation | 136 | 96,470 | |
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 | 16,691 | 71,454 | |
Manufacturing machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 287,574 | 515,320 | |
Equipment and tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 28,052 | 27,017 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 46,758 | 41,518 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 2,820 | 3,814 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 35,254 | 74,733 | |
Land use rights | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment excluding equipment and construction In progress, gross | 0 | 9,319 | |
Computer software development | |||
Property, Plant and Equipment [Line Items] | |||
Finance lease liabilities | 300 | 300 | 1,000 |
Accumulated depreciation | 400 | 500 | $ 500 |
Unamortized capitalized software development costs | $ 800 | $ 1,200 |
Balance Sheet Components - Good
Balance Sheet Components - Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Goodwill | $ 269 | $ 269 |
Balance Sheet Components - Ot_2
Balance Sheet Components - Other long term assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepayments for property and equipment | $ 6,890 | $ 14,882 |
Investments in privately held companies | 100 | 100 |
Customs deposit | 1,708 | 1,120 |
Deposit with supplier | 6,396 | 0 |
Other long-term deposits | 18 | 927 |
Office leases deposits | 1,012 | 1,100 |
Other | 1,553 | 740 |
Other long-term assets | $ 17,677 | $ 18,869 |
Balance Sheet Components - Futu
Balance Sheet Components - Future amortization expense of intangible assets (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
2023 | $ 3,286 |
2024 | 3,249 |
2025 | 3,246 |
Intangible assets, net | $ 9,781 |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 19,455 | $ 19,455 | |
Less accumulated amortization | (9,674) | (6,314) | |
Intangible assets, net (excluding goodwill) | 9,781 | 13,141 | |
Goodwill | 269 | 269 | |
Intangible assets, net | 10,050 | 13,410 | |
Amortization expense | 3,400 | 3,400 | $ 100 |
Patents and exclusive technology rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 18,037 | 18,037 | |
Finite-lived intangible asset, useful life | 5 years | ||
Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 268 | 268 | |
Finite-lived intangible asset, useful life | 10 years | ||
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 1,150 | $ 1,150 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued compensation and benefits | $ 34,681 | $ 32,756 | ||
Warranty accrual | 2,650 | 2,795 | $ 709 | $ 623 |
Stock rotation accrual | 4,798 | 3,917 | $ 3,358 | $ 1,921 |
Accrued professional fees | 2,659 | 3,017 | ||
Accrued inventory | 2,491 | 1,138 | ||
Accrued facilities related expenses | 2,421 | 2,536 | ||
Accrued property, plant and equipment | 20,485 | 8,688 | ||
Other accrued expenses | 5,159 | 6,793 | ||
Customer deposit | 40,578 | 7,139 | ||
ESPP payable | 971 | 715 | ||
Accrued liabilities | $ 116,893 | $ 69,494 |
Balance Sheet Components - Prod
Balance Sheet Components - Product Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $ 2,795 | $ 709 | $ 623 |
Addition | 1,127 | 2,443 | 895 |
Utilization | (1,272) | (357) | (809) |
Ending balance | $ 2,650 | $ 2,795 | $ 709 |
Balance Sheet Components - Stoc
Balance Sheet Components - Stock Rotation Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Rotation Accrual Increae (Decrease) [Roll Forward] | |||
Beginning balance | $ 3,917 | $ 3,358 | $ 1,921 |
Addition | 5,817 | 4,742 | 9,441 |
Utilization | (4,936) | (4,183) | (8,004) |
Ending balance | $ 4,798 | $ 3,917 | $ 3,358 |
Balance Sheet Components - Impa
Balance Sheet Components - Impairment of long-lived assets, intangible assets, and goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Goodwill | $ 269 | $ 269 |
Balance Sheet Components - Ot_3
Balance Sheet Components - Other long-term liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Concentration Risk [Line Items] | ||
Deferred payroll taxes | $ 0 | $ 1,219 |
Customer deposits | 70,301 | 42,000 |
Computer software liabilities | 8,302 | 0 |
Other | 0 | 904 |
Other long-term liabilities | 78,603 | 44,123 |
Customer A | ||
Concentration Risk [Line Items] | ||
Customer deposits | 34,500 | 21,000 |
Customer B | ||
Concentration Risk [Line Items] | ||
Customer deposits | 21,900 | $ 21,000 |
Other Customers | ||
Concentration Risk [Line Items] | ||
Customer deposits | $ 13,900 |
Debt - Short-term borrowing (De
Debt - Short-term borrowing (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 3 Months Ended | |||||||
Oct. 31, 2019 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Jun. 30, 2022 USD ($) | Sep. 30, 2021 CNY (¥) | Jun. 30, 2021 USD ($) | Oct. 31, 2019 CNY (¥) | Nov. 16, 2018 USD ($) | Nov. 16, 2018 CNY (¥) | |
Short-term Debt [Line Items] | |||||||||
Short-term debt | $ | $ 25,563 | $ 58,030 | |||||||
Bank Of Communications Limited | |||||||||
Short-term Debt [Line Items] | |||||||||
Short-term debt | $ | 1,600 | ||||||||
Maximum borrowing capacity | $ 8,500 | ¥ 140 | ¥ 60 | ||||||
Bank Of Communications Limited | Credit Facility, 3 Point 85 Percent, Due November 18, 2022 | |||||||||
Short-term Debt [Line Items] | |||||||||
Proceeds from short-term debt | $ 1,600 | ¥ 11 | |||||||
Stated interest rate | 3.85% | 3.85% | |||||||
Industrial And Commercial Bank of China | Foreign Line of Credit | |||||||||
Short-term Debt [Line Items] | |||||||||
Short-term debt | $ 500 | $ 10,300 | ¥ 72 | ||||||
Interest rate | 370% | 370% | |||||||
Proceeds from short-term debt | $ 800 | ¥ 5 | |||||||
Industrial And Commercial Bank of China | Foreign Line of Credit | Line of Credit Facility, Trade Borrowings | |||||||||
Short-term Debt [Line Items] | |||||||||
Maximum borrowing capacity | ¥ | 27 | ||||||||
Industrial And Commercial Bank of China | Foreign Line of Credit | Line of Credit Facility, Working Capital Borrowings | |||||||||
Short-term Debt [Line Items] | |||||||||
Maximum borrowing capacity | ¥ | ¥ 45 | ||||||||
Base Rate | China | Bank Of Communications Limited | |||||||||
Short-term Debt [Line Items] | |||||||||
Basis spread on variable rate | 4.99% | ||||||||
Basis spread multiple | 1.05 | 1.05 |
Debt - Accounts Receivable Fact
Debt - Accounts Receivable Factoring Agreement (Details) - Secured Debt - Accounts Receivable Factoring Agreement August Ninth Two Thousand Nineteen - USD ($) | Aug. 09, 2019 | Jun. 30, 2022 | Aug. 11, 2021 |
Debt Instrument [Line Items] | |||
Accounts Receivable Factoring Agreement, maximum borrowing capacity, percent of net accounts receivable | 70% | ||
Accounts Receivable Factoring Agreement, maximum borrowing capacity | $ 30,000,000 | ||
Basis spread on variable rate | 1.75% | ||
Accounts Receivable Factoring Agreement, borrowed amount outstanding | $ 0 | ||
Accounts Receivable Factoring Agreement, remaining borrowing capacity | $ 8,000,000 | ||
Accounts Receivable Factoring Agreement, reduction of maximum borrowing capacity | $ 8,000,000 |
Debt - Debt Financing (Details)
Debt - Debt Financing (Details) - Jireh Semiconductor Incorporated - Sales-Lease Back Transaction with Jireh Semiconductor Incorporated € in Millions | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Sep. 30, 2021 EUR (€) | Sep. 30, 2021 USD ($) | Apr. 30, 2021 EUR (€) | |
Sale Leaseback Transaction [Line Items] | ||||
Historical cost | € 12 | $ 12,800,000 | ||
Down payment amount received | € | € 6 | |||
Down payment percent | 50% | |||
Delivery payment received | $ 4,800,000 | |||
Delivery payment percent | 40% | |||
Purchase price financing amount, percent | 10% | |||
Lease term (in years) | 5 years | |||
Lease term, buyout option amount | $ 1 | |||
Implied interest rate, percent | 4.75% | |||
Debt receivable amount | $ 5,000,000 | |||
Manufacturing machinery and equipment | ||||
Sale Leaseback Transaction [Line Items] | ||||
Debt instrument, collateral amount | $ 12,800,000 |
Debt - Credit Facilities and Lo
Debt - Credit Facilities and Long-term Debt Narrative (Details) - USD ($) $ in Thousands | Feb. 16, 2022 | Aug. 18, 2021 | May 01, 2018 | Aug. 15, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 31, 2018 | Jan. 12, 2018 |
Line of Credit Facility [Line Items] | ||||||||
Long-term debt | $ 42,486 | |||||||
Restricted cash | 300 | $ 2,400 | ||||||
Secured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 17,800 | |||||||
Amount outstanding | 14,200 | |||||||
Debt term | 5 years | |||||||
Stated interest rate | 5.04% | |||||||
Secured Debt | Jireh | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 45,000 | |||||||
Amount outstanding | 45,000 | |||||||
Proceeds from lines of credit | $ 45,000 | |||||||
Debt term | 5 years 6 months | |||||||
Variable Interest Rate Term Loan Maturing August 2022 | Secured Debt | Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 30,000 | |||||||
Amount outstanding | $ 1,900 | $ 16,700 | $ 13,200 | |||||
Debt term | 5 years | |||||||
Variable Interest Rate Term Loan Maturing August 2022 | Minimum | LIBOR | Secured Debt | Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Variable Interest Rate Term Loan Maturing August 2022 | Maximum | LIBOR | Secured Debt | Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 2.25% |
Debt - Maturities of Short-tem
Debt - Maturities of Short-tem and Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 25,638 | |
2024 | 9,952 | |
2025 | 9,999 | |
2026 | 10,047 | |
2027 | 12,348 | |
Thereafter | 234 | |
Total principal of debt | 68,218 | |
Less: debt issuance costs | (169) | |
Total debt, less debt issuance costs | 68,049 | |
Short-term Debt | ||
Principal amount | 25,638 | |
Less: debt issuance costs | (75) | |
Total debt, less debt issuance costs | 25,563 | $ 58,030 |
Long-term Debt | ||
Principal amount | 42,580 | |
Less: debt issuance costs | (94) | |
Total principal of debt, less debt issuance costs | 42,486 | |
Total | ||
Principal amount | 68,218 | |
Less: debt issuance costs | (169) | |
Total debt, less debt issuance costs | $ 68,049 |
Leases - Narrative (Details)
Leases - Narrative (Details) ¥ in Millions | May 09, 2018 CNY (¥) |
Lease Financing | YinHai Leasing Company and China Import/Export Bank | YinHai Leasing Company and China Import/Export Bank | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | ¥ 400 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating leases: | ||
Fixed rent expense | $ 6,262 | $ 6,760 |
Variable rent expense | 946 | 815 |
Finance lease: | ||
Amortization of equipment | 908 | 2,200 |
Interest | 976 | 2,168 |
Short-term leases: | ||
Short-term lease expenses | 205 | 221 |
Total lease expenses | $ 9,297 | $ 12,164 |
Leases - Schedule of Lease Supp
Leases - Schedule of Lease Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Operating Lease Right Of Use Asset [Abstract] | ||
ROU assets associated with operating leases | $ 23,674 | $ 34,660 |
Finance Lease: | ||
Property, plant and equipment, gross | 4,831 | 114,404 |
Accumulated depreciation | (136) | (96,470) |
Property, plant and equipment, net | $ 4,695 | $ 17,934 |
Weighted average remaining lease term (in years) | ||
Operating leases | 7 years 5 months 1 day | 8 years 5 months 8 days |
Finance lease | 5 years | 1 year 8 months 19 days |
Weighted average discount rate | ||
Operating leases | 4.27% | 4.67% |
Finance lease | 4.76% | 5.46% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Leases - Schedule of Lease Su_2
Leases - Schedule of Lease Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash paid from amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 6,480 | $ 6,496 |
Operating cash flows from finance lease | 976 | 2,168 |
Financing cash flows from finance lease | 4,176 | 16,451 |
Non-cash investing and financing information: | ||
Operating lease right-of-use assets obtained in exchange for lease obligations | $ 5,852 | $ 5,585 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturities - Topic 842 (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | $ 5,206 |
2022 | 4,053 |
2023 | 3,222 |
2024 | 3,176 |
2025 | 3,147 |
Thereafter | 10,337 |
Total minimum lease payments | 29,141 |
Less amount representing interest | (4,413) |
Total lease liabilities | 24,728 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2021 | 993 |
2022 | 1,083 |
2023 | 1,083 |
2024 | 1,083 |
2025 | 1,076 |
Thereafter | 0 |
Total minimum lease payments | 5,318 |
Less amount representing interest | (584) |
Total lease liabilities | $ 4,734 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Millions | 12 Months Ended | 140 Months Ended | |
Jun. 30, 2022 USD ($) votes $ / shares shares | Jun. 30, 2021 $ / shares shares | Jun. 30, 2022 USD ($) votes $ / shares shares | |
Common Shares | |||
Common shares, authorized (in shares) | shares | 100,000,000 | 100,000,000 | 100,000,000 |
Common shares, par value (in dollars per share) | $ 0.002 | $ 0.002 | $ 0.002 |
Number of votes per each common share | votes | 1 | 1 | |
Common stock, dividends declared per share | $ 0 | ||
Treasury Shares | |||
Share repurchase program, authorized amount | $ | $ 30 | $ 30 | |
Share repurchase program, remaining authorized amount | $ | $ 13.4 | $ 13.4 | |
Treasury stock acquired, shares repurchased (in shares) | shares | 0 | 0 | 6,784,648 |
Treasury stock acquired less handling fees | $ | $ 67.3 | ||
Treasury stock acquired, average price per share (in dollars per share) | $ 9.92 | ||
Treasury stock retired (in shares) | shares | 0 | ||
Treasury Stock Reissued | |||
Treasury Shares | |||
Treasury stock acquired, average price per share (in dollars per share) | $ 10.06 | ||
Treasury stock reissued (in shares) | shares | 167,395 | ||
Treasury stock reissued average price per share | $ 5 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2020 | Aug. 30, 2020 | Dec. 31, 2021 | Nov. 30, 2021 | Sep. 30, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Nov. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated share-based compensation expense | $ 31,324,000 | $ 15,324,000 | $ 10,454,000 | |||||||
Deferred compensation share-based arrangements, liability, current | 0 | 100,000 | ||||||||
Share-based payment arrangement, expense, non-cash | $ 300,000 | $ 3,100,000 | $ 600,000 | |||||||
Grants in period (in shares) | 0 | 0 | 0 | |||||||
Weighted Average Remaining Recognition Period (Years) | 3 years 2 months 12 days | |||||||||
Market-based Restricted Stock Units (MSU) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Risk-free interest rate | 1% | |||||||||
Expected term (in years) | 3 years 1 month 6 days | |||||||||
Volatility rate | 62.80% | |||||||||
Dividend yield | 0% | |||||||||
Allocated share-based compensation expense | $ 4,500,000 | |||||||||
Granted (in shares) | 1,000,000 | 1,300,000 | ||||||||
Market-based Restricted Stock Units (MSU) | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award requisite service period | 4 years 1 month 6 days | |||||||||
Market-based Restricted Stock Units (MSU) | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award requisite service period | 7 years 1 month 6 days | |||||||||
Market-based Restricted Stock Units (MSU), Pre-Modification | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Risk-free interest rate | 0.13% | |||||||||
Expected term (in years) | 1 year 3 months 18 days | |||||||||
Volatility rate | 66.70% | |||||||||
Dividend yield | 0% | |||||||||
Market-based Restricted Stock Units (MSU), Post-Modification | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Risk-free interest rate | 0.14% | |||||||||
Expected term (in years) | 2 years 3 months 18 days | |||||||||
Volatility rate | 59.10% | |||||||||
Dividend yield | 0% | |||||||||
Allocated share-based compensation expense | $ 1,600,000 | $ 1,200,000 | $ 600,000 | |||||||
Employee Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares authorized under plan (in shares) | 2,500,000 | 1,430,000 | ||||||||
Grant price, percent of fair value of common stock at date of grant | 85% | |||||||||
Expected term (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 3 months 18 days | |||||||
Dividend yield | 0% | 0% | 0% | |||||||
Payroll deduction accumulation period (in months) | 6 months | |||||||||
Performance Based Restricted Stock Units (PRSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted, value | $ 4,000,000 | |||||||||
Allocated share-based compensation expense | $ 4,600,000 | $ 2,300,000 | $ 1,500,000 | |||||||
Weighted Average Remaining Recognition Period (Years) | 1 year 10 months 6 days | 1 year 8 months 26 days | 1 year 7 months 6 days | 1 year 10 months 17 days | ||||||
Granted (in shares) | 194,000 | 165,500 | 155,000 | |||||||
2018 Omnibus Incentive Plan | Stock Options | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Grant price, percent of fair value of common stock at date of grant | 100% | |||||||||
2018 Omnibus Incentive Plan | Nonstatutory Stock Options | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Grant price, percent of fair value of common stock at date of grant | 85% | |||||||||
2018 Omnibus Incentive Plan | Employee stock options and RSUs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant (in shares) | 537,260 | |||||||||
Stock options exercisable term (in years) | 10 years | |||||||||
2018 Omnibus Incentive Plan | Employee stock options and RSUs | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period (in years) | 4 years | |||||||||
2018 Omnibus Incentive Plan | Employee stock options and RSUs | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares authorized under plan (in shares) | 3,065,000 | 2,065,000 | ||||||||
Award vesting period (in years) | 5 years | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 1,000,000 | |||||||||
2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Grant price, percent of fair value of common stock at date of grant | 100% | |||||||||
2018 Omnibus Incentive Plan | External Board Members | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted, value | $ 125,000 | |||||||||
Average fair market value per share period | 90 days | |||||||||
2018 Omnibus Incentive Plan | External Board Members | Restricted Stock Units (RSUs) | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 10,000 |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock and Performance-based Restrcited Stock Activity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Sep. 30, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||
Allocated share-based compensation expense | $ 31,324,000 | $ 15,324,000 | $ 10,454,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Weighted Average Remaining Recognition Period (Years) | 3 years 2 months 12 days | |||||
Market-based Restricted Stock Units (MSU) | ||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||
Allocated share-based compensation expense | $ 4,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted (in shares) | 1,000,000 | 1,300,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Expected term (in years) | 3 years 1 month 6 days | |||||
Dividend yield | 0% | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested (in shares) | 1,053,524 | 932,138 | 906,341 | |||
Granted (in shares) | 597,381 | 722,873 | 505,440 | |||
Vested (in shares) | (410,670) | (567,087) | (455,893) | |||
Forfeited (in shares) | (70,626) | (34,400) | (23,750) | |||
Nonvested (in shares) | 1,169,609 | 1,053,524 | 932,138 | 906,341 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Nonvested (in dollars per share) | $ 21.60 | $ 11.36 | $ 14.09 | |||
Granted (in dollars per share) | 45.83 | 29.85 | 8.51 | |||
Vested (in dollars per share) | 20.54 | 15.70 | 13.53 | |||
Forfeited (in dollars per share) | 26.79 | 14.88 | 13.19 | |||
Nonvested (in dollars per share) | $ 34.03 | $ 21.60 | $ 11.36 | $ 14.09 | ||
Weighted Average Remaining Recognition Period (Years) | 1 year 8 months 23 days | 1 year 8 months 23 days | 1 year 7 months 28 days | 1 year 7 months 13 days | ||
Aggregate intrinsic value, nonvested | $ 38,994,764 | $ 32,016,594 | $ 10,141,661 | $ 8,465,225 | ||
Performance Based Restricted Stock Units (PRSUs) | ||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||
Allocated share-based compensation expense | $ 4,600,000 | $ 2,300,000 | $ 1,500,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested (in shares) | 353,824 | 342,775 | 596,724 | |||
Granted (in shares) | 194,000 | 165,500 | 155,000 | |||
Vested (in shares) | (151,199) | (148,211) | (110,659) | |||
Forfeited (in shares) | (7,250) | (6,240) | (298,290) | |||
Nonvested (in shares) | 389,375 | 353,824 | 342,775 | 596,724 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Nonvested (in dollars per share) | $ 22.69 | $ 12.38 | $ 13.95 | |||
Granted (in dollars per share) | 48.65 | 36.27 | 7.36 | |||
Vested (in dollars per share) | 19.44 | 14.24 | 16.68 | |||
Forfeited (in dollars per share) | 40.33 | 17.23 | 11.32 | |||
Nonvested (in dollars per share) | $ 36.56 | $ 22.69 | $ 12.38 | $ 13.95 | ||
Weighted Average Remaining Recognition Period (Years) | 1 year 10 months 6 days | 1 year 8 months 26 days | 1 year 7 months 6 days | 1 year 10 months 17 days | ||
Aggregate intrinsic value, nonvested | $ 12,981,763 | $ 10,752,711 | $ 3,729,392 | $ 5,573,402 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Option Activities (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding (in shares) | 487,875 | 643,978 | 876,478 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (98,000) | (156,103) | (2,500) | |
Canceled or forfeited (in shares) | 0 | 0 | (230,000) | |
Outstanding (in shares) | 389,875 | 487,875 | 643,978 | 876,478 |
Options vested and expected to vest (in shares) | 389,875 | |||
Exercisable (in shares) | 389,875 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding (in dollars per share) | $ 7.99 | $ 8.79 | $ 10.98 | |
Granted (in dollars per share) | 0 | 0 | 0 | |
Exercised (in dollars per share) | 9.15 | 11.31 | 10.50 | |
Canceled or forfeited (in dollars per share) | 0 | 0 | 17.11 | |
Outstanding (in dollars per share) | 7.70 | $ 7.99 | $ 8.79 | $ 10.98 |
Options vested and expected to vest (in dollars per share) | 7.70 | |||
Exercisable (in dollars per share) | $ 7.70 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Outstanding, Weighted Average Remaining Contractual Term (in years) | 1 year 6 months 10 days | 2 years 3 months 25 days | 2 years 10 months 20 days | 3 years 21 days |
Options, vested and expected to vest, Weighted Average Remaining Contractual Term (in years) | 1 year 6 months 10 days | |||
Exercisable, Weighted Average Remaining Contractual Term (in years) | 1 year 6 months 10 days | |||
Aggregate Intrinsic Value, Exercised | $ 3,936,675 | $ 1,272,291 | $ 4,726 | |
Aggregate Intrinsic Value, Outstanding | 9,997,364 | |||
Options, vested and expected to vest, outstanding, aggregate intrinsic value | 9,997,364 | |||
Exercisable, Intrinsic Value | $ 9,997,364 |
Share-based Compensation - Fair
Share-based Compensation - Fair Value Weighted Average Assumptions (Details) - Employee Stock | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility rate, minimum | 66.40% | 63.10% | 46.40% |
Volatility rate, maximum | 69.90% | 68.50% | 58.30% |
Risk-free interest rate, minimum | 0.30% | 0.10% | 0.20% |
Risk-free interest rate, maximum | 2.10% | 0.20% | 1.60% |
Expected term (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 3 months 18 days |
Dividend yield | 0% | 0% | 0% |
Share-based Compensation - Empl
Share-based Compensation - Employee Share Purchase Plan (Details) - Employee Stock - USD ($) | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Duration of offering periods for ESPP (in months) | 24 months | ||||
Percent of compensation allowed for purchase of options | 15% | ||||
Payroll deduction accumulation period (in months) | 6 months | ||||
Grant price, percent of fair value of common stock at date of grant | 85% | ||||
Maximum number of shares authorized for purchase per purchase date (in shares) | 300,000 | ||||
Shares authorized under plan (in shares) | 2,500,000 | 1,430,000 | |||
Weighted-average grant date fair value | $ 16.48 | $ 11.11 | $ 4.33 | ||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of common shares that may be purchased on any purchase date by a participant (in shares) | 875 | ||||
Maximum number of common shares that may be purchased per a 24-month offering period by a participant (in shares) | 3,500 | ||||
Maximum value of common stock that may be purchased in any one calendar year | $ 25,000 |
Share-based Compensation - Shar
Share-based Compensation - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | $ 31,324 | $ 15,324 | $ 10,454 | |
Unrecognized compensation expense | $ 84,300 | |||
Recognition period of share-based compensation expense (in years) | 3 years 2 months 12 days | |||
Cost of goods sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | $ 5,125 | 1,756 | 1,530 | |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | 7,049 | 5,352 | 2,895 | |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | 19,150 | 8,216 | 6,029 | |
Performance Based Restricted Stock Units (PRSUs) | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated share-based compensation expense | $ 4,600 | $ 2,300 | $ 1,500 | |
Granted (in shares) | 194,000 | 165,500 | 155,000 | |
Recognition period of share-based compensation expense (in years) | 1 year 10 months 6 days | 1 year 8 months 26 days | 1 year 7 months 6 days | 1 year 10 months 17 days |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Retirement Benefit Plan Disclosure [Line Items] | |
Employer matching contribution, percent of match | 50% |
Employer matching contribution, percent of employees' gross pay | 4% |
Company contributions to retirement plan | $ 0.3 |
Defined Contribution Plan, Employer Matching Contribution, Eligible Compensation Maximum Match, Percent | 2% |
United States | |
Retirement Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 7.70% |
United States | Retirement Plan, 401-K | |
Retirement Benefit Plan Disclosure [Line Items] | |
Employee maximum salary deferral contribution, percent | 100% |
Taiwan | |
Retirement Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 6% |
China | Minimum | |
Retirement Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 14% |
China | Maximum | |
Retirement Benefit Plan Disclosure [Line Items] | |
Mandatory employer contributions according to labor and social security laws and regulations, percent | 16% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Tax Credit Carryforward [Line Items] | |||||
Valuation allowance | $ 5,755 | $ 41,474 | |||
Valuation allowance increase | 35,700 | 3,600 | |||
Undistributed earnings of foreign subsidiaries | 314,700 | ||||
Unrecognized tax benefits | 8,609 | 7,645 | $ 7,126 | $ 7,150 | |
Unrecognized tax benefit, amount netted against deferred tax assets | 6,600 | ||||
Unrecognized tax benefits that would reduce effective income tax rate | 5,600 | ||||
Decrease in unrecognized tax benefits is reasonably possible | 10 | ||||
Income tax interest and penalties accrued | 200 | 100 | |||
Income tax interest and penalties expense | 32 | 5 | |||
Income tax benefit | $ (1,100) | 39,258 | 3,935 | $ 348 | |
Long-term Income Tax Payable | |||||
Tax Credit Carryforward [Line Items] | |||||
Unrecognized tax benefits | 2,000 | ||||
Federal | Research Tax Credit Carryforward | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax credit carryforward | 8,900 | ||||
State | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax credit carryforward | 7,800 | ||||
Tax credit carryforward, subject to expiration | 200 | ||||
Tax credit carryforward, not subject to expiration | 7,600 | ||||
Net operating loss carryforwards | 900 | ||||
Corporate Joint Venture | |||||
Tax Credit Carryforward [Line Items] | |||||
Deferred tax liability | 29,600 | ||||
State research and development credit carryforward | |||||
Tax Credit Carryforward [Line Items] | |||||
Valuation allowance | 5,800 | 5,800 | |||
Net operating loss, fixed asset and intangible asset | Corporate Joint Venture | |||||
Tax Credit Carryforward [Line Items] | |||||
Valuation allowance | $ 0 | $ 35,700 |
Income Taxes - Income Tax Sched
Income Taxes - Income Tax Schedules (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
U.S. federal taxes: | ||||
Current | $ 645 | $ 31 | $ (1,673) | |
Deferred | 2,260 | 1,955 | 22 | |
Non-U.S. taxes: | ||||
Current | 7,749 | 2,344 | 1,940 | |
Deferred | 28,599 | (396) | 58 | |
State taxes, net of federal benefit: | ||||
Current | 5 | 1 | 1 | |
Total provision for income taxes | $ (1,100) | $ 39,258 | $ 3,935 | $ 348 |
Effective income tax rate reconciliation | ||||
United States statutory rate | 21% | 21% | 21% | |
Stock-based compensation | 0% | 0.10% | 0% | |
Foreign taxes, net | (14.30%) | (14.40%) | (36.10%) | |
Outside basis difference on equity method investment | 1.20% | 0% | 0% | |
Research and development credit | (0.30%) | (2.40%) | 8% | |
Non-deductible expenses | 0.50% | 2.40% | (1.00%) | |
U.S. Tax Act deferred tax re-measurement | 0% | 0% | 6.20% | |
Foreign Derived Intangible Income Deduction | (0.30%) | 0% | 0% | |
Other | 0.10% | (0.20%) | 0% | |
Effective income tax rate | 7.90% | 6.50% | (1.90%) | |
Domestic and foreign components of income (loss) before taxes | ||||
U.S. operations | $ 16,684 | $ 9,622 | $ 3,549 | |
Non-U.S. operations | 478,386 | 50,602 | (21,458) | |
Loss before income taxes | 495,070 | 60,224 | (17,909) | |
Deferred tax assets: | ||||
Accrued compensation | 5,742 | 3,954 | ||
Net operating loss carryforwards | 61 | 22,539 | ||
Depreciation | 4,365 | 7,924 | ||
Tax credits | 15,079 | 15,550 | ||
Operating lease liabilities | 5,807 | 7,292 | ||
Capitalized intangible assets | 0 | 9,982 | ||
Accruals and reserves | 643 | 1,113 | ||
Total deferred tax assets | 31,697 | 68,354 | ||
Valuation allowance | (5,755) | (41,474) | ||
Total deferred tax assets, net of valuation allowance | 25,942 | 26,880 | ||
Deferred tax liabilities: | ||||
Depreciation and amortization | (18,909) | (17,193) | ||
Right of use assets | (5,579) | (6,968) | ||
Investments | (29,619) | 0 | ||
Total deferred tax liabilities | (54,107) | (24,161) | ||
Net deferred tax assets/(liabilities) | 2,719 | |||
Current and non-current deferred tax assets and liabilities | ||||
Long-term deferred tax assets | 592 | 5,167 | ||
Long-term deferred tax liabilities | (28,757) | (2,448) | ||
Net deferred tax assets/(liabilities) | (28,165) | |||
Net deferred tax assets/(liabilities) | 2,719 | |||
Unrecognized tax benefits rollforward | ||||
Balance at beginning of year | 7,645 | 7,126 | 7,150 | |
Additions based on tax positions related to the current year | 1,121 | 677 | 333 | |
Reductions based on tax positions related to prior years | (40) | (41) | (114) | |
Reductions due to lapse of applicable statute of limitations | (117) | (117) | (243) | |
Balance at end of year | $ 8,609 | $ 7,645 | $ 7,126 |
Segment and Geographic inform_3
Segment and Geographic information Segment Narrative (Details) | 12 Months Ended |
Jun. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Geographic inform_4
Segment and Geographic information - Revenue by Geographical Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 777,552 | $ 656,902 | $ 464,909 |
Hong Kong | |||
Segment Reporting Information [Line Items] | |||
Revenue | 630,238 | 537,553 | 390,478 |
China | |||
Segment Reporting Information [Line Items] | |||
Revenue | 120,978 | 107,325 | 64,058 |
South Korea | |||
Segment Reporting Information [Line Items] | |||
Revenue | 11,802 | 5,497 | 3,303 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenue | 12,470 | 5,492 | 4,465 |
Other countries | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 2,064 | $ 1,035 | $ 2,605 |
Segment and Geographic inform_5
Segment and Geographic information - Revenue by Product Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 777,552 | $ 656,902 | $ 464,909 |
Power discrete | |||
Segment Reporting Information [Line Items] | |||
Revenue | 545,135 | 482,718 | 391,941 |
Power IC | |||
Segment Reporting Information [Line Items] | |||
Revenue | 220,882 | 161,726 | 66,360 |
Packaging and testing services | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 11,535 | $ 12,458 | $ 6,608 |
Segment and Geographic inform_6
Segment and Geographic information Location and Net Book Value of Long-Lived Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
PPE and land use rights | $ 342,340 | $ 471,637 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
PPE and land use rights | 105,326 | 350,387 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
PPE and land use rights | 232,731 | 118,756 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
PPE and land use rights | $ 4,283 | $ 2,494 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - China - Subsidiaries [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, restricted statutory reserves | $ 92.4 | $ 209.9 |
Foreign subsidiaries, restricted statutory reserves percent of parent consolidated net assets | 10.80% | 50.40% |
Minimum | ||
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, minimum percent of after-tax profit required annually in statutory reserves | 10% | |
Maximum | ||
Restricted Statutory Reserves [Line Items] | ||
Foreign subsidiaries, statutory reserves maximum cumulative amount as a percent of registered capital | 50% |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Raw materials, wafers, and packaging and testing services purchase commitments [Member] | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 89.9 | $ 81.8 |
Property and equipment purchase commitments [Member] | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 63.4 | $ 90 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingencies and Indemnities (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Indemnification accrual | $ 0 | $ 0 |
Cybersecutiy Incident (Details)
Cybersecutiy Incident (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Loss from Cyber Security Incident | |
Loss Contingencies [Line Items] | |
Loss recorded in the period from cyber security incident | $ 1.5 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
SEC Schedule, 12-09, Allowance, Credit Loss | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | $ 30 | $ 30 | $ 30 |
Additions | 0 | 0 | 0 |
Reductions | 0 | 0 | 0 |
Balance | 30 | 30 | 30 |
Allowance for Price Adjustments | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | 12,415 | 30,092 | 24,075 |
Additions | 170,651 | 178,902 | 140,413 |
Reductions | (164,335) | (196,579) | (134,396) |
Balance | 18,731 | 12,415 | 30,092 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | 41,474 | 37,827 | 35,420 |
Additions | 0 | 3,647 | 2,407 |
Reductions | (35,719) | 0 | 0 |
Balance | $ 5,755 | $ 41,474 | $ 37,827 |