AOSL - Earnings call transcript Q1 2025 | Alpha and Omega Semiconductor Limited

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Operator

Good afternoon. Thank you for attending today's Alpha and Omega Semiconductor Fiscal First Quarter 2025 Earnings Call. My name is [ Sherlyn ], and I'll be your moderator for today. [Operator Instructions]. I'd now like to turn the conference over to our host, Steven Pelayo. Steven, you may proceed.

Steven Pelayo

welcome fiscal and results. XXXX and call Semiconductor's everyone, discuss to first afternoon, to Omega Alpha conference Good quarter financial Steven representative Relations Pelayo, I'm for AOS. Investor our our me and With Stephen Chang, are Yifan today Liang, CFO. CEO; This call live web. and over the being is recorded broadcast replay X following via available the Relations section for the link in Investor be of will call A days a our website.

and the that, as follows guidance December business results strategic highlights begin Yifan provide today. updates, After report. review will proceed a Stephen will for segment call quarter. financial Our and will detailed including the

Finally, we on November posted release the The will X, have distributed today, also earnings is the the company's close. Q&A wire market release was session. The website. XXXX, the after over

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

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

Stephen? over to call CEO, turn Chang. Stephen I'll the Now our

Stephen Chang

with line begin demand a fiscal was jump segment QX our overview margin broad-based $XXX.X Welcome earnings in high-level quick in and quarter Steven. saw major with came strong to delivered September Communications; Industrial and Omega's results smartphone you, Alpha our to Power guidance. and of power was in call. servers seasonality sequential was and I strength in growth Computing due Tier $X.XX. We from growth PC wearables gross million. revenue U.S. Supply Consumer; details. We Revenue segments. X our gaming our the results supplies Non-GAAP AC-DC Relative and fiscal Non-GAAP and will each chargers XX.X%. with customer within from the segment; EPS Thank notebooks EPS and a then QX in into desktops, within segment. of and

a intelligent to We have our delivered and strengths component BOM to capture strides aim continue on total provider, a in a ICs. share make from We to market and with and to packaging silicon, commitment portfolio. unwavering leveraging increase solutions transform supplier high-performance broader content

offer introducing For charging strength in Vcore example, opportunities. cards faster and computing screens, we opportunities AI AI data foldable leveraging integration our in and centers. In for smartphones, new graphics advanced like trends are products and growth

X.X% see sequentially slightly some results with next of our represented X.X% revenue These and Communication, now In provide the addition by original mid-single-digit and for efficient, in potential quarter up driven me quarter. Starting by long-term September our all and guidance were was the and let year-over-year solar, XX% than sustainable to for and global for solutions. With expectation Computing that, e-mobility, appliances, revenue. energy results total growth. Computing. gaming we segment segment cover home push better

a platform next and servers, due strength was to which pause mentioned and the before transition. AI As PC notebooks cards saw by before, relative accelerator we desktops, graphics offset from softer

position in increasingly in We are confident advanced computing. our

up mass as new due prepare for to boards cards is backlog At makers ]. the now their we [ cards closely working AI and add-in growing they graphics both and card are for this Asia transition. platform stage, accelerator with bring Our production in

power with both we total power platform, power our we and GPU. These the more supply wins paired approach as design relationships controller content solutions stages. our strength customer used ICs, our stage to of increase new to the the as and highlight being expect BOM the controller, With are

are having more these our talk we during with larger developments Additionally, collaborating to with anticipate report. XXXX. slated We customers next earnings about opportunities data on center for

market graphics into grow to the quarter, with seasonality. forward decline segment Computing in tablet expect market notebook gains servers, well but share Looking December and offset as as we the seasonality, to is strength PC expected the slightly and by with sequentially desktops in cards

and the quarter TVs, with and the of wearables growth home now This XX.X% line Consumer so in were is sequential up gaming, the revenue. total correction The low were XX.X% we to behind sequentially inventory us. Turning gaming, represented September in was revenue double-digit appliances. decline and of and in our year-over-year by confident sequential segment. X% driven results for offset growth by was a primarily quarter second are forecast

new don't we to standout share customer levels versions headphones. watches notable smart a were quarter, growth in record However, next platform. Wearables expect until and on market the meaningful of transitions the and reaching gains the

quarter, decline close December a XX% in forecast For wearables new launch home and in the the product in seasonal impacts continued TVs, appliances. and sequential by driven segment, in post we Consumer gaming to decline softness

we product high-end content BOM higher as a X results the segment. quarter models, sequential growth in In in Tier and are customer were an moving prepared as above Revenue some Next, smartphone the sequentially Communications XX.X% was increase its for represented XX.X% are total launch. September and of of seeing charging year-over-year revenue. expectations they U.S. our discuss up let's XX.X% toward These current. double-digit their our

also China by offset We strong from declines OEMs, from growth Korea. saw sequential sequential

phones. shift to quarter, mentioned premium a last As we from are benefiting mix more

double-digit smartphone next on ahead, year. due limited anticipate overall seasonality through sell the and quarter Looking in low visibility a to sequential December heading into we decline

has and which XX.X% to at supplies see We in down chargers. Within to increased talk forecast additional our driven by last power due results about low quick sequentially. in the for and total in XX.X% Industrial, now solar up AC-DC quick revenue started. segment, end while Supply our XX% soft, opportunities quick were strength seasonal Power chargers but XXXX higher currents. by of driven the Industrial, let's The XX.X% content charging Now, remains still accounted for for was BOM growth, of chargers year-over-year, but and sequential recovery were XX%

also to Taiwan relationships fans in server partner are DC on leveraging for racks. We

Power with are closing, the be corrections and AI AC-DC new and past quarter returned continued The has in For line our growth markets expect broad-based complete. experienced quarter, are like low inventory confirms to quick was driven and Industrial over the we segment Seasonality supplies. In expectations. and chargers. December single-digits the September we from in emerging. Supply seasonal the advanced will computing year growth e-mobility a grow the sequentially, by This primarily growth decline partially power offset by

We partially by the expect primarily cards, the a by wearables quarter gaming, typical first limited TV, typically and but XXXX as December of in well. e-mobility driven is seasonally servers, quick seasonal graphics into this and desktops, XXXX soft and offset tablets, is point, calendar chargers. At visibility decline quarter our notebooks,

However, we lines. are advanced base end product growth, broadening array markets a optimistic by all across a and addressing and for of business bolstered technology, portfolio a poised diversified premier customer

road We are map. executing steadfast our in technology

centers, batteries low-carbon into supplier sustainable AI success going in graphics applications. expanding new especially content. In AI key accelerate to as society. move into power by underpins a transition only over the such opportunities designing advanced we are increasing towards solutions We excited cards digitalization, and increase connectivity summary, We transition efforts share electrification, screens. and These and many in from of bear and charging BOM few currents as a multiple starting about in tap and both our our total our as PCs PCs, past higher smartphones integration smartphone as well management into see controllers This opportunities years with data component strategic and now as forward of to as and power will a are AI, fruit trends provider. computing we evidenced and stages

on power markets quarter Beyond will Computing and power appliances to trends we next the adjacent optimistic Communications quarter. and our that, turn solar, Yifan tools. With results home in financial e-mobility, now call outlook I motors the our and discussion the underlying first over a remain of as and for fiscal gaming, Yifan? for such segments,

Yifan Liang

thank XX.X% $XXX.X quarter for Thank you year-over-year. you, for the Good joining up X.X% was afternoon, everyone, and and Stephen. million, sequentially us. Revenue

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

revenue decrease was service share was fluctuation revenue quarter $X.X primarily other was compared service $X.XX quarter share The for million compared $X.X the impacted $XX.X were professional was last erosion $X.X mainly versus million operating quarter-over-quarter last quarter to a $X.XX year million License Assembly million for lower per last million $XX.X to and quarter quarter $X.X quarter gross quarter the year compared for XX.X% to a million in million year fees $X.XX of and million engineering prior engineering quarter and was and year. and prior a the by to was ago. last expenses. Non-GAAP as and compared same to ago. decrease The quarterly quarter-over-quarter last for changes. Non-GAAP slight due mix and XX.X% $X.X ago. Non-GAAP $XX.X and same margin year. the XX.X% the and expenses per ASP EPS million $X.X

year. prior flow flow Moving in cash customer to was quarter of million, repayment cash deposits. was including By operating Operating $XX.X of million on million million and cash $XX the last $X.X flow. comparison, $X.X

ago. refund million deposits customer quarter EBITDAS quarter. same $XX ] quarter compared last the for million million to $X.X the a [ year to was in expect for $XX.X million $XX.X We December the quarter and

$XX.X September Days trade Now was for to Average to at were to were inventory compared of million let inventory last XX the sequentially. the days cash to end me compared increased days sales $XX million days the by by receivables quarter $XXX.X $X.X days balance quarter. decreased turn for We a to $XXX quarter. Net the the sheet. quarter. CapEx for days outstanding completed million the XX XXX $X.X with balance compared XXX our last quarter-over-quarter. million of million the quarter. Net prior million for compared quarter prior in quarter in

$X the range expect million We for to $X to December CapEx quarter million. from

Now, discuss guidance. like to quarter I December would

range million, $X revenue million. expected please tax expect questions. the of session. or be we for margin margin be gross approximately call X%. the be income the in range the $XX to $XXX $XX Non-GAAP $X.X be anticipate million start million, are to million. minus Q&A plus Operator, in interest minus expense and non-GAAP approximately be expenses income GAAP to XX%, plus to operating gross minus to range or We minus We to open or of to equal expense will $X of expenses be the $XX.X Interest plus million. With that, to the $X or be operating XX%, million, or in GAAP plus plus million. X%. minus to

Operator

first with Instructions] Williams comes [Operator question from company Our David Benchmark. the

David Williams

excuse I on bit me, here. little jumped late a And

So just there forgive you there of force business, competitive from the changed seeing if And some -- any seeing But me there? graphics that's you're is in your you're you maybe kind of covered guess, in standpoint, are anything how seeing? call. in the new that particular, this card I curious

Stephen Chang

Okay.

Your you just phrase question repeat last of got about Can the heard part general, I question the again? you up. chopped a can competition question? in little the but

David Williams

just Sure. in Yes, about No the more competitive before noticed a anything if graphics talked the competitive you've side? so, spot. card landscape that guess, or being and problem. You I seen

you're how curious Just that today? seeing

Stephen Chang

Sure.

we segments the it -- now, in year and and consumer end And the a in industrial of overall market the we computing we're in period. market, then And most competition, year, general the automotive and seeing, in earlier markets, correction overall in -- is are right this correction space. side. happening -- our more from last in the still saw So

expected to at for of therefore, of as So to I those the card the in the the on cases, see where on the our We're is on more going see a less come next the earlier. year. leading side, key add-in -- about major expect see ] we fabs -- beginning previous are customer here and platform, seeing business the at that's competition in participate to we transition, platform that, card each seeking increased and as to bit previous the -- now undergoing side. seeing there sockets. the at more here. some less by market overall, going big were big little in every we been cycles of do where to what their the we transformation cycle. more we with And expect Theyâ€™re thing [ market chipset We launch upcoming the least markets. But competitors their a There's firms to part back think is affected some competition this expect said, and fill graphics one side, it's into least our new are is competitors there. Actually, in graphics that of their a are

the we more side, see competition On also there the center a a to There's -- as players there. do few major of to the big there's data be opportunity there, expect well. but more going

David Williams

ask there on volatility wanted like bit place seasonality. early to too trends call? is out kind to you're to Or seasonal guiding expect maybe enough just assume you that here? too just than down still seasonality. is back looks fair I It think more of Is can a the it to we're that we that a there

Stephen Chang

going recovery, for and at March to computing still content the is waiting come side. probably PC with full to hoping I least to think into few are that base said, But at into shipments. more the we've Therefore, application. cycles going to even shipments as But for to the comes previous the where again not seeking PCs, able able and -- following in to that the top We're that accelerator for card grow advances to see standard still. BOM back back-to-school We layer of quarter the to years, has in, same cycle year. We're solution just PC for and layer now sell shipments that card seasons, yes, -- those grow seasonal consumer, the into in, seasonally, of help waiting going then what and I in correction more that pattern markets, -- guess, of AI can it's back do in that the that up September through trough total fill business. to the that returned. the a peak in more graphics we quarter the should And [ for think to come we go especially the come be holiday especially of our typically standing a the in the year, the more. That hasn't ] our PC replacement because the PC the when time, in the yet. is for gain inventory markets after been right of and going we're we're be last gap we That as it on again.

Operator

B. comes question next Our Riley. from Craig Ellis with company

Craig Ellis

remarks, single start surprised that wanted your multi-quarter that to but off if high. noted I for you that the around seems I the Stephen, wouldn't with saw well down in be seasonal would a quarter. which be think XX%, basis, clarification. expectation above for Communications quarter quarter on a seems in we December I

Android have? that's spanning So that is as different program weak? that's as that a that you particular well customers other something OEM is programs Or

Stephen Chang

a quarter. decline in a didn't say To double-digit low December December clarify, low in XX% sequential quarter. -- decline think the we single I We said

in in customer our launch phone. [ basically, did segment, this U.S. the So ] market that #X

We pretty are The launch -- the normally phone. for strong. a that it is fairly on share to -- drop some do We have quarter. down good we and that December into going expect

be reflects little quarter. simply going I strong right will that December to a reception honestly, early say think that it's So how bit now, that the now. Right into

Communications were as Just note, were about about you Consumer? or a asking asking you

Craig Ellis

where Well, [ I misassociated referenced because thought ] about apologize. the if those I ], XX% I number. But I asking was Communications that's you [

Stephen Chang

will that Several September off strong well. season. as the wearables, decline as the the as naturally the the well a where holiday was with reflection tend of into that's headsets, the things has the that were in to you're market quarter product for as do the in And gaming segment, mentioned such drop you go once quarter once the something to cycle That's specifically market, the Right. Consumer December passing XX% life TV those we The more segment. Consumer that.

Craig Ellis

Got sense. it. Makes

Okay.

the Moving questions. on to

First AI. on and compute

specific like that could are provide there opportunities company are And out the Can on like you that confidence it dollar XXXX. socket the may sounds the that quite has some color with some helpful. for I be quite us, Stephen, the than signaling be that be that provide Any And to extent details in things content AI progress, you be would So can color material would tone that there higher on prior. won? on it useful.

Stephen Chang

Sure.

in that there, is graphics solutions opportunity for the the accelerator indeed And near-term that's more our next-generation AI AI, launched using cards being the with from cards. similar next both. customer BOM with for So coming growing. content And the is combination platform is actually

only $X it the of maybe can depending level And to -- or now ] $X. with. this power to sell that being of even maybe the as $XX can can And used from the content BOM the [ It range to over going talking MOS thing well and what not and being then upon this MOS products next as we that as it's about are being that pairing both grow heard is GPU going from case, content, of the in the around driver market anywhere total of the we also there, the we're is And selling going think more you've And evidence new us selling solutions. new the to a -- talking being used platform us power solution. In about general, driver driver our Over in multiple GPU. MOS, about sold, I that total we're this to the together in stages. to but into with happening platform, $X terms actually the one to sold controller $XX power paired be is controller and

Craig Ellis

would in control to application, CPU instances cards from and And Is that then and have be would it. in content, cards. anywhere be there in server X where that would you GPU where -- have that a AI content those front Got a in of configuration? you'd GPU back for Stephen, the type X

Stephen Chang

for we're cards addressing on us, the So specifically cards. themselves, initially data the

PC, the a card. both that these the same go graphics go accelerator a traditional but cards, as that AI So into also ones are an server would ones can into

coming ramp launch initial customer. with and So from be the where this will that's content at

development, it's update We that's where solutions working content on the opportunities that's continue be something on are earlier for it's still data in forward. where onboard that center And we'll -- to also going we're can actually indeed bigger. going something but

Craig Ellis

it. moving few to then And Got a Okay. items. on other

mentioned which you to business the in You desktop year next company? of play this of how gain. this year Can that degree share business the back quantify the half the in benefited that the benefit or then for could year? And half back out does the

Stephen Chang

of December Sure. We -- helping segment down. -- helping PC -- quarter, still actually into in come segment an segment important back our to our the part we our the is see is of -- business. -- base. normally are happy grow this down And motherboard the more -- Desktop in share portion cycling the going seasonally us it's to of the something of kind that's Computer Computing also a the are when

market. the something And I helpful. is this to, that go guess, that against nice able it's to So curve be I it in is think

Craig Ellis

fiscal are third quarter? what's had what And and in expectation Great. over can as competitive And as we've calendar next are look you way lastly all me, your X our pricing maybe this What risks the play think year. look eye the for out? out positives ahead, the quarters? play first you pricing How your on out it did then quarter, for I

Yifan Liang

Sure.

by pricing softer mean, During of is industrial. guess and demand Competitors inventory automotive the I slowdown, recovery. see in increased quarter, overall this especially market correction and reflection pressure. I a did impacted we

their toward in So consumer-related markets [ fabs fill more ]. they shift to --

So players, we all see increased large from small. or competition

erosion single-digit. erosion right year So annual mid- is the ASP now, versus high the for trending more I mean, this high toward to typical single-digit

new do to rollout counter to to what product accelerate our So in erosion. the here is ASP want we

all been So doing the we have that's been -- what along years.

Operator

next with from comes Jeremy Stifel. question Kwan Our company

Jeremy Kwan

you they've try is plans to and years terms Can helpful. you're you midrange the low low past, on their -- JV that also if your Maybe the how pricing talk maybe of seen think -- you've give about a doing to quick and talk would And about follow-up Can in little a I maybe position their -- you on of the what counter an out the you there talked competition can you in of there update maybe things a continue question. customers? about in to where coming expansion intensify? for that? capacity to us maybe Just to bit terms in communicated of bit China. the search to be capacity new and update Have

Stephen Chang

Jeremy, can also to part against and compete let me JV Yifan the and today's then in address how competitors the on question. the the market, address first pricing on --

and that So sockets Yifan in all performance is attractive trying what key more to margin more strategy the to really sockets, ASPs higher with is emphasized products improving differentiated. are after go that we are all,

phone talk about powering towards why but solutions, the in is application-specific as have the especially -- in makers driving market. trend total of that more this us after there, solutions differentiation. And higher is one heard China, our that going So moving charging premium smartphone underlying are And we're markets towards core the you've not over only that's that is phones. the current,

selling, products higher that there, power we again, especially over have these offered charging better are newer currents. to performance, So

separation performance between when more and us So there's the actually, competition. it creates that an pushes trend more, application

So solutions, go attractive we'll combat sockets competition. help to our the us after drive will continue and with that to these and

Yifan Liang

In yes, I right the additional I now, JV terms raising in of -- mean, funds. mean, and side, process JV is of JV

are they more and EBITDA So in then they their up customers. positive sign of yes, terms business,

our well. still very suppliers with we and are of they then work one still major So them

at point. business supporting are they this So our

Jeremy Kwan

to you the can of has kind especially, and -- the the terms it us upgrades in [ if the your and fab? of revenue Just your you now lower utilization capacity Maybe couple of that in see price fab, continual -- the and is the give kind that all that at -- in rate going can the can is know, of don't all us erosion out you at just utilization at that looking coming, or combination, capacity, where get putting ] give of next rates you does quarters? Oregon I with where

Yifan Liang

Sure. Okay.

the our quarter, XX% around was utilization fab's For so. or

So we still we fab some can further overall, -- I new mean, out we expect have go so our overall. growth mean, support as to our products, capacity I yes, and roll to more provide support there.

Jeremy Kwan

going the can Got then sequential is that's margin in expect much the to us how puts How trend volume? more are the basis? Is it. a into And takes gross of quarter? much line, terms go? And expected you you December color decline the give and kind where How the a is it XX% of at longer-term the here? on of Or kind looking to bottom you pricing? do in

Yifan Liang

erosion. much And September pretty contributor. of ASP was because was that's quarter-over-quarter Sure. mean, margin I drop quarter's mainly the -- Okay.

can mean, there, from gross we mix. I our our that mean, up go business, support products, can then we and once grow utilization to expect improve our which newer So then -- can I our line our and margin -- product provide also mean, I

So we gross grow our to where that's want margin.

Operator

back to I'd the more are pass There Instructions] questions our time, conference host queue. remarks. for registered no At closing to like [Operator in over this

Steven Pelayo

in interest It's forward Take next This quarter. to again for today. Pelayo. to Steven you AOS, Great. we earnings care. look concludes and Okay. you our talking your call Thank

Operator

Thank conference your you enjoy your conclude will day. for of call. participation, today's the That and rest

Alpha and Omega Semiconductor Limited (AOSL) 4 Nov 242025 Q1 Earnings call transcript