AOSL - Earnings call transcript Q3 2019 | Alpha and Omega Semiconductor Limited

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Operator

Good afternoon. My name is Jason, and I will be your conference operator today. At this time, I would like to welcome everyone to the Alpha and Omega Semiconductor financial results for the fiscal 2019 third quarter ended March 31, 2019, conference call. [Operator instructions] So-Yeong Jeong, investor relations, you may begin your conference.

So Yeon Jeong

Thank you, Jason. welcome fiscal Alpha XXXX and conference Omega everyone, for call third-quarter afternoon, to and the Semiconductor's Good results. This representative is for relations the company. So-Yeon Jeong, investor With Dr. me today are Chang, Liang, Mike CEO; our our senior CFO; Chang, VP Yifan and our marketing. of Stephen broadcasted the recorded can for of www.aosmd.com. website investor following relations is days the via call accessed over at and section call web live This the seven the being and be link in our quarter. will financial the Yifan the results the call of review begin with for review highlights, business Stephen will will by Mike report. Then, segment provide the who followed a detailed will for Yifan that, follow next After up with guidance the the quarter.

reserve on business and answers. wire our company's we'll release the The by X, time May The distributed after website. XXXX, was Finally, for today, market some posted earnings also questions closed. release is

from non-GAAP considered and We included measures the in provide measures is could useful make release. the of GAAP in Our forward-looking this based measures. to of these measures measures we We performance certain that will you the our to operating expectations. by statements, provide. that be cause our non-GAAP to comparable we include presentation that of believe current GAAP expectations financial forward-looking such management's because materially would release on should earnings investors and information the they A non-GAAP reconciliation financial we that call, actual use including with risks remind course discussions earnings conjunction projections. and uncertainties about business conference are outlook during These like certain statements differ involve and results

We no information to our these risks with obligations of to today's uncertainties, recent the provided detailed call. in refer filings the more please a description For update and subsequent assume SEC. and

Yifan, I'll results. quarter Now, of the third the discussion an fiscal overview Yifan? financial to our CFO, provide over to turn

Yifan Liang

from impact worse-than-expected quarter the quarter, the when you, So-Yeon. X% Revenue joining year. shortage. last The and the compared same was to prior and million, primarily March Good thank of afternoon, X.X% for PC $XXX.X to up quarter-over-quarter was decrease the CPU for you us. Thank quarter down due

In year the $XX.X IC XX.X% over was revenue quarter terms million, from year from X% and down up Power X.X% and a revenue up of product X.X% was down mix, prior sequentially, $XX.X MOSFET year. million, ago.

was as million to the revenue million service last compared $X.X quarter million prior year. for Assembly the $X.X $X.X and same for quarter,

The $X.X last to of the team non-GAAP excluded engineering service computing $X.X power Non-GAAP to share-based segment Year the Lunar for the $X.X million total for year. for same excluded to mix, segment $X.X joint margin quarter of million charge, expenses $X.X compared lower variable Non-GAAP to revenue; the and and XX.X% for charge quarter compared for costs were supply to the and gross year. quarter, X.X%. the holiday. quarter as others margin for and gross the million Non-GAAP million share-based million million expenses. quarter and utilization last quarter quarter-over-quarter digital quarter, million for the operating expenses the in $X.X $X.X the Non-GAAP largely accruals the decrease primarily the the in to the XX%, as operating the excluded prior to power for Regarding XX.X%; the prior consumer was of back-end quarter-over-quarter expenses and $X.X X.X%; XX.X% due same represented million Industrial XX.X%; compensation quarter XX.X%; same to and Both lower communications $X.X million prior and in gross quarter operating The prior for fluctuation $XX.X in same million as expenses of million last quarter compensation million as non-GAAP compared the of XX.X% million, to attributable the operations, was Chongqing $X the and year. last in the last of the factory same for decrease of also due pre-production Chongqing compared margin compared ramp-up for related $X.X prior Non-GAAP New was year. of production and mainly decrease the expenses expenses quarter operating Joint quarter Non-GAAP year. compensation quarter. for March million quarter, gross revenue quarter for $XX.X $XX.X prior quarter compared million included the year. compared also $X.X Venture, the million operating related Non-GAAP for expenses the $X.X and excluded venture GAAP same quarter prior to March in controller last to margin the to as $X.X March as million

and compared last million million $X securing included was quarter, March as EBITDAs million for $XX.X for prior the $X.X Our last the in year. $XX.X digital our year. product was same attributable from $X.X quarter million customer the share $XX.X last $X.X and million prior continued work million AOS, operations $X.XX March quarter the flow EPS the quarter road was with to flow. cash used $XX.X for compared the attributable last prior quarter, $X.X AOS. controller cash our quarter to In year. same The operating map. we $XX.X Joint $X.XX share year. for progress compared Non-GAAP for is million, to expense March prior same was quarter, generated last and per and quarter operating the quarter to designs quarter to flow per shipments future as customers $X.XX steady positive quarter making million Venture million power quarter the continues deposit the the million the for the to same for for to to quarter, prior for for quarter for million Cash attributable compared quarter Chongqing AOS tax per for same and to quarter $X.X $X.X the compared for the and for as generate for share the cash team $X.X flow AOS toward March year. product million in million to Income

with sheet, quarter, million balance completed as at the company. cash we balance the $XXX.X $XXX.X to balance on of which at cash including compared the equivalent Venture end of cash Joint $XX included March last to quarter JV Chongqing the Moving at cash million $XX.X our million, and million balance

balance a cash including Our million the million, $XX company. was year ago $XXX.X JV at

and a at million were XX-inch million down $XXX the paid mass test, from the During fab. for primarily quarter in balance, of cash inventory and in JV The Average $XX.X million quarter million inventory for XXX from long-term and and the prior assembly preparing up JV we increase production The last up end, inventories million are quarter. occurred year. $XX.X for property, company Capital for to the ramping and days days as in expenditures the last the and company AOS. the last and working company and of million our the approximately restricted which loan in down capital approximately a $XX.X and lease days JV and quarter, $XX million the loan was AOS with prior million million million, $X.X financing investment. compensating $X.X of including recorded capex was the as year. $X.X company $X.X paid balance million million equipment to JV million plant the borrowed quarter $XXX.X were for XXX million XX million, million quarter Net end year. $XXX.X quarter, to as $XXX.X XX $XX.X compared trade days from as Net from million outstanding the $X.X at compared quarter loans. $XXX.X receivables same the last $XX.X quarter in at of compared quarter last Net to Days the was for outstanding inventory days prior $XX.X was sales for were quarter. compared the

I Venture. the turn words of the to over Joint Before would few our on Chongqing Mike, say to call progress like I a

ramp that, fab's quarter, of the sampling qualification and up, The our test customer audits, production we went and pleased Tier during continued one are March and the XX-inch We well. customer XX assembly them product process being customers. completed most to

production CEO, expect provide quarter. that, of ramp we We would the or With the call in business start turn July, continuing to for I small who will our Dr. toward over Mike June its targeted at fab test are Mike? level. our to the while and month production Chang, now the assembly the to to production up highlights mass like XX-inch

Mike Chang

Good Yifan. afternoon. Thanks,

and Our team challenging market We revenue near-term delivered expectations. environment. a our within execution EPS in demonstrated solid

straight Our top-line grew of year-over-year This XXth growth. marks quarter revenue X% year company's the over year.

December We a in quarter. quickly by market to to conditions significant reduction changing expense by resulting also operating responded our the million prudently compared as costs, our almost $X of managing

market IGBT the as The trend as appliance out cash navigated customer, AOS appliance of home win prolonged very offset discuss We specifically major detail calls, better earnings the mentioned products, CPU markets, developments continued coupled China them in in operating pleased at demand and with be market home smartphone shortly. in initially and smartphone that and preceded and on by including recent shortage. will would balance with We had medium-voltage in our ease to as we quick-charger softness appliance I conditions March generate applications. expected high-value with the our Korean these supply Stephen was March. expected, unexpected flow. the The both supply our early healthy share a quarter DMOS. Additionally, past in we am signs expansion well. played home soft a which

Even improve in quarter June CPU the half the continues stand constraints, with strategic with it shortage calendar and the second relationships that in our of the XXXX. strong. Now, customers expect should the we

customer we As from quarter. million a computing received in deposit $X another March an example, the

temporary supply be in the for computing the of cause recovery CPU delay we us. quarter, While in half business slowdown a the believe our processor a will tailwind second in June will

strong pipeline, us. diversification, years. excited and for focus product new our planted ahead in at product With past our few very seeds Looking had multiyear win the about growth am the drivers opportunities I on we design of the

those bearing of are today. fruit Some opportunities

strategy, we embarked mobile leader we and on protection quick example, battery and are chargers. in market our a smartphone For now

solutions our the Additionally, module for we debuted line appliance and home IGBT market.

a resulting these this expect now, As businesses fact, second of we further in revenue year, meaningful of in ramping the half already are contributions. accelerate new to which matter calendar

products our at two importantly, improving us of of exciting gaining are one position suppliers. strong This is customers, for number as for new market reasons. a the traction Tier one our high-value More top-tier

a brings potential wins design First, multitude of it attractive with us revenue.

remain much-needed total to I order growth, of secure stickier as To anticipated semiconductor up us as to its capacity, revenue. mission, enables to the computing that and is well a ability our top near-term provider ramping the become power market-leading and focused is remain rebound on sustainable generating solution in that it in the business, Chongqing our support strengthen priority. confident we more in business. to position, Second, our Venture Joint our our realize

proven ever manufacturing stronger technology a business and have team. strategy, capability, an We importantly, most talented and dedicated expertise,

positions and for years for well foundation our us All accelerated solidifies of this to come. growth

While outlook year revenue to model The to healthy, taking near-term decisive in multiple response actions we growth are by challenges, are of XXXX. for mid-term tremendous long-term $XXX calendar demand we target in across markets. our annual committed products with opportunity AOS remains very achieve million

would to call Stephen? status execute strategy the With for of to that, each our our to to VP Stephen, long-term growth. sustainable drive senior We segment. report turn over to continue the I marketing, like business

Stephen Chang

and good Mike, you, Thank afternoon.

represented start me It computing. March in XX.X% of the Let total quarter. revenue with

While it increased year. year it decreased over X.X% sequentially, by XX.X%

As to the will it quarter. marginal the caused impact and shortage continue also Mike CPU quarter, mentioned into earlier, negative June the a March

calendar in processor expect to we of second the half However, XXXX. shipments improve

we the for business market result of moment, segments. a innovation Our which business and intense production is customers are when other receives near-term our At rebounds. us allocation, customer high-growth counting as-well-as our them PC prioritizing higher plan challenges, product healthy Despite as strong this on penetration. focus on other in supply and the commercial are computing to our

application For business call expand example, quarter. in to shared high-end our I the on the tablet continued March last that

Driver designed notebook also value into leading have We customers. high MOS in our

are As such, leading all a and supplier we PC ODMs. major for OEMs

of the discuss let's was consumer which segment, revenue during quarter. XX.X% total Now the March

and China XX% as The module slightly due wins per application. into with ramping increase as strong appliance premium year a over sequentially but decreased year. IGBT-based was expectation, to refrigerator our our increased this Korea, home As now well TVs.We Korean are customer's solutions segment in design

home into dies the modules Our smaller This factor to motor and single footprint and reduced In assemblies, application. integrated such simplifies highly IGBT in foothold motors for form are parallel, as our co-package package. a compressor stronger as develop customers China refrigerator products a IC are the discrete our we the of applications. multiple discrete gaining the design market used allows in appliance a variety

XXXX. in We by increase on IGBT are to calendar track line over our XX%

overall our we quarter, June expect see slight the growth For segment. in consumer a to

Next, let's and turn to X.X% Segment. total X.X% industrial sequentially over year segment This down revenue, XX.X% supply and the year. power down for accounted of

down March supply shortages. quarter computing AC-DC due in slowed for business CPU power Our to the

chargers other the smartphones adoption the for On higher-power quick continued. hand, of

the business smartphone Our the March global market. quick-charger demonstrated healthy growth despite in quarter soft

to expand customers, believe we we strong further the quarter. which we increase continue With business, in we AC-DC than at As smartphone revenue offset June quick-charger for expect softness in growth the top will our in segment modest market. expect this more that,

discuss let's over segment, of Finally, and sequentially March revenue decreased quarter. year, communications XX.X% Segment was XX.X% the X.X% respectively. in revenue which the year and

more battery premium segment we the with smartphone are as to excited to due business during low to in troughed strong quarter As being we pack said, weakness March continue expected, That phones. coupled we momentum see into our this design seasonality.

top in battery customer base and major smartphone smartphone This OEM. all to players. quick a design include the we win win with achieved pack During quarter, charger broadens design major our Chinese another March

a are second recovery introduced phones entering smartphone of calendar as anticipating half We the the in newly high-end are XXXX, market.

already the are peak production season. customers now for preparation with We in ramping our

telecom grow business gradually continues our as Additionally, rolls out. XG to

we quarter With rebound a call the will in that, Yifan June I strong for the expect over to segment. turn now the this For guidance.

Yifan Liang

to expenses Loss plus-or-minus $X.X expense Non-GAAP be gross approximately operating share-based to operating of million $X.X in in around relating non-GAAP joint Non-GAAP costs to expenses of the million. and a million of approximately margin to an of production relating million CPU look $XX.X the we relating non-controlling million compensation approximately margin expenses development the to the Non-GAAP operating be Operating $X in to and and Non-GAAP production between forward margin be estimated to Gross $X.X of $XX.X million venture. the estimated to range expenses digital $X Chongqing expected million. excludes $X.X venture million share-based million $X.X approximately plus-or-minus to to year basis, controller As we estimated million million plus-or-minus ramp-up as June XXXX, the X%. expenses include compensation expected revenue power joint shortage to pre-production million. are fiscal $X GAAP and the the Both relating be our gross be and $XXX of business. exclude charge expenses XX.X% quarter million fourth pre-production costs this range continue $XXX plus-or-minus is item charge will the $X.X assume to approximately of XX.X% million. Tax $X.X estimated to $X.X ramp-up estimated million. joint X%. to quarter. be we to of expenses of expect to be On attributable interest non-GAAP expected $X.X million. excluding venture, estimated is be

are up Operator? update not With obligations of to part questioning. that, will As normal our we open assuming we practice, floor this for any information. the

Operator

first from Stifel. of question Your from line [Operator instructions] comes Jeremy the Kwan

Your open. line is

Jeremy Kwan

of terms start to a cash to where the you start to the need one $XX it see that sense stabilize on fluctuate guess production flows to a you'll that on China or And and CapEx see it then to of the is to tend moderate, -- and us bit. give cash of quite give where of nice JV. payments you, you the like burn? maybe the Can want you you where JV, there might it question looks terms -- the we see can needs, drive to all that. know like of million in progress But be? in tends operating that I some be things to to get loan, thank of timing Yes, a us might was it financing cash I

Yifan Liang

Sure, Jeremy.

of In we inventory, the quarters. and things, in venture's burn actually of cash the production. prior right due the the at quarter primarily yes, for up stayed those same about operations now terms joint as capital, some March flow, The working as quarter buildup was this so cash for to some ramp increase level

yes, up level month targeted mass would ramp assembly to to up or June of I tests because in fab at -- go the probably stay its and expect continue to frame. time will like to would inventory July and that's see XX-inch to it level, build a we will into So continue some production

for we're now gearing right up So preparation. the

to for this mean, loan much I CapEx overall we the So quarter million and got $XX that's pretty close there. CapEx, in

bit So we're loans, working capital the Phase we now then OK negotiation little for the need still for loan. one a And in working probably production. we're capital right more so

So that's ramp. support is to is place in now, production largely, line cash now, right our in right the flow

Jeremy Kwan

sense you guess expect of capital And working you would how just much a clarify, that can how the be? give us I loan, to much

Yifan Liang

I $XX million million, $XX range. would say

Jeremy Kwan

then key And interest you can give of rate maybe on us for loan, the the paying some that terms? that, the CapEx you're

Yifan Liang

that Oh, interest around years X%, sure. the six was The X% quarter, for loan March loan, and range. rate was

Jeremy Kwan

Great. And is Is the the the JV million in the then paid of -- outstanding for guess you a in mentioned the -- there actually $X.X portion for that back Is JV? that then? I loan loans. of AOS terms

Yifan Liang

That one for is AOS alone, no. took like No, we –

Jeremy Kwan

AOS, it. got

Yifan Liang

For we year. Oregon took the like of expansion our last fab

Jeremy Kwan

Oregon of fab, And bit speaking Oregon you more in pretty guys Do fab, little with now you constrained moderation supply flexibility of there growth have the the you a still some here? levels maybe still or tight? at are are the

Yifan Liang

it's the still so full, products. now for very tight certain Right

the with our right the and joint managing now, also ramp-up we're mix Chongqing So align venture. with

Jeremy Kwan

still you range? still capacity there? everything capacity are still, Is million-type is humming? And completing the in mass that Or is the XXX

Yifan Liang

around Yes. this stage, it's yes, there. At still

Jeremy Kwan

one point. I up give before question it last this And at

hope all that your calendar end is is on of a that 'XX? or aim hit 'XX, million for of For target that calendar run-rate you the 'XX, expected the by $XXX to for basis

Yifan Liang

revenue XXXX. in calendar annual year an It's

Jeremy Kwan

it. 'XX? Got In calendar

Yifan Liang

Yes.

Jeremy Kwan

of at idea margins any that And target level?

Yifan Liang

XX% this above targeting We're at point.

Jeremy Kwan

you Thank much. very Great.

Operator

from [Operator Your next Craig Riley instructions] from comes question of line the B. Ellis FBR.

Unidentified Analyst

Lynch guys, in execution on Craig is on a Congrats tough Ellis. Hey, quarter. Carlin for this

kind Just supply the wanted you in And it the to June through are in Are quarter you color expecting look and half CPU the over year-end? any guiding flat then June touch as in any will of the what that guys expectations are any quarter online, on or the of for kind do the or back initial quarter? your in CPU of quarter, guys -- kind weakness, year. CPU comes back supply expectations particularly have like of or you improvement

Stephen Chang

the question. for Thanks

we at half. the they that second time. course server closely then What QX, Right that at of year and see supply the that into per hear So allocation the very now, their some seeing in originally so look capacity was prolonged of now, the QX expected in shipments. going we monitor anticipating would the recovery more half, on what for time is more the of even being expanding and consumer is do we on CPU Intel's market from into In and what on with and beginning course statements. last. we know the of own are side, We processor that, second resume mix the a what we're toward right commercial, are going management we

the and are adjusting production for So we, that our likewise, also match business June quarter. to

Unidentified Analyst

on, that and -- that ramp. changes business consumer you I like I'm color that how benefit? refrigerator business, relationship I we expectations know kind that a what through And think just quarter, should there you moving slightly about new big, up your the how any the the that the congrats of second that year-end? revenues as in guided about on design one-quarter wondering Was win. but for for Can provide guess

Stephen Chang

Sure.

and past So our this couple line years. been module of into investing the few, for line we've IGBT

gradual this very coming customer this. this the counting to And out us in just we're roll the got quarter will We win increase uptick, are year now anticipate quarters. particular and we we've this in a ramp win a to March by sharp So but this also major see at switched -- not right late to design quarter, grow last starting up but recently. quarter to gradual been that increase and We excited this customer. into continue on models, of a because additional will the

Unidentified Analyst

about then on in should know you about segment, And is more of with last guys, unit days couple smartphone increased in assuming about And then had we what smartphone touched here units. content that smartphone also bellwethers smartphone. of of also year-on-year think in guiding the seem for flattish look more normal this XG, kind think should like? and year, year, the content and a the they thinking you I guess content We've next unit kind How to high-end some growth? environment? flat a increases smartphone kind increases guys smartphones report we your now, had How for of I a be -- power of

Stephen Chang

Sure.

I the Let question let first. near-term And understand the parts smartphone. on me regarding -- us for me is side client the so on two see touch more the communications, up is this

is business in is the charger side. in smartphone actually One second in quick two protection Our the is the and in areas. different battery

growth battery main for that the and our into one winning is protection we're getting side, us Tier design product customers. the On more actually driver

So customers products the been a in smartphones. our their reporting more because is Tier due to on are one lot we've adopting that ramp-up that of

of trend kind chargers. before And that's this have as a been the market, it, higher win global that. charger to smartphone able there's we've strong with quick happening smartphones a didn't And in the even because moving on market shipped So side toward of these soft in we share this quick well, share are power.

get increase, the larger power chargers creates which themselves, for to opportunity the and larger, output an us and has increased packs also ASP. battery As

used in being application. are we higher-power -- seeing the content more being or So also MOSFETs

So the of side. expansion on client share as as increase, [Ph] balm well it's a story

opportunity the is for space because much this for space. for in specifically this XG us participated Now, to side -- a everyone infrastructure the playing for actually hasn't moving But telecom before. AOS in XG, great really

we as quarters major suited next now, and some will these in right in our are see continue into quarters right well. We're now, are for of starting designed coming customers. application. this coming And being these now quarters, that -- right ramp well to products in couple past very So the

Unidentified Analyst

it. this any And maybe of saw is -- Or last it kind Did guys still did a be you said strength? that you few of Got quarter. Got unexpected it. infrastructure seeing that? XG of had too know guys that people see early some they that maybe you I see guys for to surprise strength

Stephen Chang

-- We did design-in sockets get it's see quarter. And the now, this and see customers. it But for we an QX. our more early. grow that in we're little coming to go in I will did bit own uptick quarters, a gradually think it still too. of us, we business right more last in in yes, anticipating And We're still space also into up

Unidentified Analyst

at just I the the that'll had of that look of joint online, 'XX? benefit. you that all any I obviously year-over-year just get confidence kind to But quarter ask growth guys half in your last thrown sense a that be if big of target. revenue lower And one a question, venture thinking there. in what for kind out your change calendar assume it. has of trying once Got kind the has if will a like comes back XX% changed been the I'm lower could -- Has first

Yifan Liang

June of and quarter For largely because was shortage situation. the the CPU it March quarter,

plus other home to Stephen pack we year, see battery in it expect tailwind we some we the of expect reductions grow. we'll some appliances, areas, smartphone computing, for mentioned quick half probably In and on the have chargers So like revenue. and the our second

half So grow. I expect to mean, continue back we the can that we on second would track resume to

start supply joint hand, we On our month current further capped in other support our otherwise or will XX-inch at needed, because June to are up are Chongqing be much fab of venture can capacity. capacities expecting our the Those we yes, July, the our side, ramping growth.

ramp-up. So do the need we joint venture's

Unidentified Analyst

Thank I'll hop you, in back and Got. the queue. Got it.

Operator

next the line Your comes Kwan question Stifel. of from from Jeremy

open. Your line is

Jeremy Kwan

Hi. Yes.

that or any mentioned there's about on out talk with maybe Mike, And the on Is I cleaning question back Just backlog comments Is some guys? one quarter different, you putting patterns backlogs. ordering customers there other, a ongoing? think, that -- way customer and still the times? lead you anything last

Mike Chang

Actually, We the backlog were clearly cleaned double think actively before. last the I in quarters couple yes. because orders there up

However, I of there, think we coming right our end booking do process and back now. this the whole see

Jeremy Kwan

digital see expect reference Great. on to update that and and really And revenues, terms a the you progress at you seeing the start good market, in you. Stephen, even? it board. was then the of of power, a maybe might seeing give Can penetrating quick APEC to timing update an us when Thank

Mike Chang

and These feel or the this [indiscernible] fortunately, deviated totally it's very, very interesting from good very potential there. In area, market. got unfortunately commodity

every product though customer we for for each So there. even but year more almost platforms application, have some single a to special-tune, like specific a

a also to stickier. you in it's bit more get once get there time in, it takes but So

anything lot So of year, and probably come small unfortunately, the not some next this significant this a year, we will one year. -- the engagement year. expect have lucky, Maybe do remedy be maybe customer mostly will there, we next but

Jeremy Kwan

that received. you question, one deposit million the just last of And $X terms in

you consider you the think if and as wondering quarter last of too, and those part deposits? there's if -- that that's million $XX one on I part of any AOS just books, restrictions got on that's

Yifan Liang

restrictions Yes. is $X AOS million quarter March there's customer the no on cash deposit. on Right we've cash, received a and balance. yes, In now, sitting the second it

Operator

next of from Your line Ellis FBR. Riley Craig B. comes the from question

Unidentified Analyst

of Does server of than provide Thanks. expected. power timing could change that initiatives? you're you maybe know I bit on we the management a some commentary the some that any guys update if wondering how that little about longer thinking inventory had seen Just at digestion all? going was

Stephen Chang

asking or -- the for current you initiative, regarding power Are the our digital business?

Unidentified Analyst

following initiatives, last on up power the Digital question.

Stephen Chang

Sure.

with know to I now are we're in. in engaging customers get product designed our stage, products the right and So our still development we

us Actually now for impact major it with the engage to us. So gives it's to right it no customers. helps, some more time us

Unidentified Analyst

if color half get the give last great, might coming the kind through second half. for you the wondering through that the guys revenue we what had can't ramp you back me. And one probably joint it question would Just any in I I was me, any venture of much, the like and be but online year? know said on too then color of know of could for I look and that's

Yifan Liang

production now venture sure. the the joint can and and quarter. from mass month Right are fab start June or then up gradually the our Okay, we the ramp expecting quarter XX-inch in July December September of small in

in is next level, so target to the year, the on depending to of our December quarter So speed. ramp first up probably Phase the half, ramp-up one

So because the fast. ramp fab it up -- can't very needs

still So holds. overall, it I estimate would

For the support fully we of up, one, it can for Phase AOS million. the annual $XXX revenue once additional ramped

Unidentified Analyst

Got it.

So correct? expect of $XXX annualized at December be in That's that's to running fab -- plan, we the million is in an that revenue? the kind should

Yifan Liang

on December either It now next right year, will quarter depend the speed. ramp-up March I or or mean, June.

Unidentified Analyst

it. All Thanks, Got guys. right.

Operator

the comes Stifel. of question Your next line from from Jeremy Kwan

Your linen is open.

Jeremy Kwan

Hi.

Sorry.

impact should is now that about Is have there you gross Just that into margin, 'XX? I -- potential might a with out like or to range, that the the be right one sounds to gross in JV margin the fiscal slight it we recall to think on last how follow-up as question. XX%-ish look you it neutral. going

Yifan Liang

the with ramp to because the now has target production started now out the Right not level. XX-inch right ramp-up costs, up and until we forma fab yet, production pro

fab, level on -- a we estimate eight-inch up So our our with current on Phase XX-inch be to will basis wafers. when die the our eight-inch par wafer is fabs we one ramp

So estimate. our that's current

So cost basically year, level. we're that next expecting

Operator

over I no to team turn are at back the closing further There time. questions this for management call remarks.

Mike Chang

AOS, your and you quarter. earnings interest you. we for Thank call you today. in to Thank look our talking concludes with again forward next This

Operator

disconnect. concludes now may conference call, This today’s you

So Yeon Jeong	Investor Relations
Yifan Liang	Chief Financial Officer and Corporate Secretary
Mike Chang	Co Founder, Chairman, Chief Executive Officer and President
Stephen Chang	Senior Vice President of Marketing
Jeremy Kwan	Stifel, Nicolaus

Alpha and Omega Semiconductor Limited (AOSL) 5 May 192019 Q3 Earnings call transcript