Alpha & Omega Semiconductor Earnings 2020-12-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

aosl-20201231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________

FORM 10-Q

_________________________________

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission file number 001-34717

__________________________

Alpha and Omega Semiconductor Limited

(Exact name of Registrant as Specified in its Charter)


Bermuda			77-0553536
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification Number)

Clarendon House, 2 Church Street

Hamilton HM 11, Bermuda

(Address of Principal Registered

Offices including Zip Code)

(408) 830-9742

(Registrant's Telephone Number, Including Area Code)

__________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

(Do not check if a smaller reporting company)

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	AOSL	The NASDAQ Global Select Market

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of common shares outstanding as of January 25, 2021: 25,770,99825,770,998

Alpha and Omega Semiconductor Limited

Form 10-Q

Fiscal Second Quarter Ended December 31, 2020

TABLE OF CONTENTS


		Page
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements:	1
	Condensed Consolidated Balance Sheets as of December 31 , 2020 and June 30, 2020 (Unaudited)	1
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended December 3 1 , 2020 and 2019 (Unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended December 31 , 2020 and 2019 (Unaudited)	3
	Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended December 31 , 2020 and 2019 (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31 , 2020 and 2019 (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	Controls and Procedures	43
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	44
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
	Signatures	48

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


ALPHA AND OMEGA SEMICONDUCTOR LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands except par value per share)
	December 31, 2020		June 30, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	180,966	$	158,536
Restricted cash	230		2,190
Accounts receivable, net	24,934		13,272
Inventories	144,307		135,528

Other current assets	10,833		8,807
Total current assets	361,270		318,333
Property, plant and equipment, net	430,808		412,340
Operating lease right-of-use assets, net	34,395		32,948
Intangible assets, net	15,090		16,770


Deferred income tax assets	4,852		4,766
Restricted cash - long-term	2,143		1,978
Other long-term assets	4,607		5,804
Total assets	$	853,165	$	792,939
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	83,859	$	86,181
Accrued liabilities	60,483		54,986
Income taxes payable	2,166		1,360
Short-term debt	43,574		30,114

Finance lease liabilities	16,535		15,258
Operating lease liabilities	4,896		4,159
Total current liabilities	211,513		192,058
Long-term debt	93,096		99,775
Income taxes payable - long-term	921		903
Deferred income tax liabilities	860		496
Finance lease liabilities - long-term	20,821		26,842
Operating lease liabilities - long-term	31,102		30,254
Other long-term liabilities	20,196		10,723
Total liabilities	378,509		361,051
Commitments and contingencies (Note 10)
Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at December 31, 2020 and June 30, 2020	—		—
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 32,394 shares and 25,765 shares, respectively at December 31, 2020 and 31,944 shares and 25,305 shares, respectively at June 30, 2020	65		64
Treasury shares at cost: 6,629 shares at December 31, 2020 and 6,639 shares at June 30, 2020	(66,097)		(66,184)
Additional paid-in capital	254,980		246,103
Accumulated other comprehensive income (loss)	1,481		(5,127)
Retained earnings	141,289		118,833
Total Alpha and Omega Semiconductor Limited shareholder's equity	331,718		293,689
Noncontrolling interest	142,938		138,199
Total equity	474,656		431,888
Total liabilities and equity	$	853,165	$	792,939

See accompanying notes to these condensed consolidated financial statements.

Table of Contents

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per share data)



	Three Months Ended December 31,				Six Months Ended December 31,
	2020		2019		2020		2019
Revenue	$	158,830	$	117,860	$	310,381	$	235,662
Cost of goods sold	110,081		93,454		219,109		184,324
Gross profit	48,749		24,406		91,272		51,338
Operating expenses
Research and development	15,423		12,147		30,114		24,515
Selling, general and administrative	19,736		15,629		37,241		30,814

Total operating expenses	35,159		27,776		67,355		55,329
Operating income (loss)	13,590		(3,370)		23,917		(3,991)
Interest expense and other income (loss), net	(381)		(635)		(930)		(1,462)
Income (loss) before income taxes	13,209		(4,005)		22,987		(5,453)
Income tax expense	669		568		1,680		978
Net income (loss) including noncontrolling interest	12,540		(4,573)		21,307		(6,431)
Net loss attributable to noncontrolling interest	(363)		(3,568)		(1,170)		(6,435)
Net income (loss) attributable to Alpha and Omega Semiconductor Limited	$	12,903	$	(1,005)	$	22,477	$	4
Net income (loss) per common share attributable to Alpha and Omega Semiconductor Limited
Basic	$	0.50	$	(0.04)	$	0.88	$	0.00
Diluted	$	0.47	$	(0.04)	$	0.84	$	0.00
Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net income (loss) per share
Basic	25,672		24,701		25,506		24,620
Diluted	27,353		24,701		26,834		25,362

See accompanying notes to these condensed consolidated financial statements.

Table of Contents

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands)


	Three Months Ended December 31,				Six Months Ended December 31,
	2020		2019		2020		2019
Net income (loss) including noncontrolling interest	$	12,540	$	(4,573)	$	21,307	$	(6,431)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	6,814		3,055		12,517		(3,096)
Comprehensive income (loss)	19,354		(1,518)		33,824		(9,527)
Less: Noncontrolling interest	2,824		(2,150)		4,739		(7,985)
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited	$	16,530	$	632	$	29,085	$	(1,542)

See accompanying notes to these condensed consolidated financial statements.

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited, in thousands)


	Common Shares		Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total AOS Shareholders' Equity		Noncontrolling Interest		Total Equity

















































































Balance, September 30, 2020	$	64	$	(66,171)	$	248,967	$	(2,146)	$	128,394	$	309,108	$	140,114	$	449,222
Exercise of common stock options and release of restricted stock units	—		—		1,495		—		—		1,495		—		1,495
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units	—		74		—		—		(8)		66		—		66
Withholding tax on restricted stock units	—		—		(541)		—		—		(541)		—		(541)
Issuance of shares under ESPP	1		—		1,635		—		—		1,636		—		1,636

Share-based compensation	—		—		2,424		—		—		2,424		—		2,424
Restricted stock units settlement in connection with service	—		—		1,000		—		—		1,000		—		1,000
Net income (loss)	—		—		—		—		12,903		12,903		(363)		12,540
Cumulative translation adjustment	—		—		—		3,627		—		3,627		3,187		6,814

Balance, December 31, 2020	$	65	$	(66,097)	$	254,980	$	1,481	$	141,289	$	331,718	$	142,938	$	474,656

	Common Shares		Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total AOS Shareholders' Equity		Noncontrolling Interest		Total Equity
Balance, June 30, 2020	$	64	$	(66,184)	$	246,103	$	(5,127)	$	118,833	$	293,689	$	138,199	$	431,888
Exercise of common stock options and release of restricted stock units	—		—		1,495		—		—		1,495		—		1,495
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units	—		87		—		—		(21)		66		—		66
Withholding tax on restricted stock units	—		—		(953)		—		—		(953)		—		(953)
Issuance of shares under ESPP	1		—		1,635		—		—		1,636		—		1,636

Share-based compensation	—		—		4,700		—		—		4,700		—		4,700
Restricted stock units settlement in connection with service	—		—		2,000		—		—		2,000		—		2,000
Net income (loss)	—		—		—		—		22,477		22,477		(1,170)		21,307
Cumulative translation adjustment	—		—		—		6,608		—		6,608		5,909		12,517

Balance, December 31, 2020	$	65	$	(66,097)	$	254,980	$	1,481	$	141,289	$	331,718	$	142,938	$	474,656

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited, in thousands)


	Common Shares		Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total AOS Shareholders' Equity		Noncontrolling Interest		Total Equity
Balance, September 30, 2019	$	62	$	(66,227)	$	236,683	$	(5,876)	$	126,481	$	291,123	$	146,430	$	437,553
Exercise of common stock options and release of restricted stock units	—		—		26		—		—		26		—		26

Withholding tax on restricted stock units	—		—		(99)		—		—		(99)		—		(99)
Issuance of shares under ESPP	1		—		1,700		—		—		1,701		—		1,701

Share-based compensation	—		—		2,487		—		—		2,487		—		2,487
Net loss	—		—		—		—		(1,005)		(1,005)		(3,568)		(4,573)
Cumulative translation adjustment	—		—		—		1,637		—		1,637		1,418		3,055

Balance, December 31, 2019	$	63	$	(66,227)	$	240,797	$	(4,239)	$	125,476	$	295,870	$	144,280	$	440,150

	Common Shares		Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total AOS Shareholders' Equity		Noncontrolling Interest		Total Equity
Balance, June 30, 2019	$	62	$	(66,240)	$	234,410	$	(2,693)	$	125,485	$	291,024	$	152,265	$	443,289
Exercise of common stock options and release of restricted stock units	—		—		26		—		—		26		—		26
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units	—		13		—		—		(13)		—		—		—
Withholding tax on restricted stock units	—		—		(195)		—		—		(195)		—		(195)
Issuance of shares under ESPP	1		—		1,700		—		—		1,701		—		1,701

Share-based compensation	—		—		4,856		—		—		4,856		—		4,856
Net income (loss)	—		—		—		—		4		4		(6,435)		(6,431)
Cumulative translation adjustment	—		—		—		(1,546)		—		(1,546)		(1,550)		(3,096)

Balance, December 31, 2019	$	63	$	(66,227)	$	240,797	$	(4,239)	$	125,476	$	295,870	$	144,280	$	440,150

See accompanying notes to these condensed consolidated financial statements.

Table of Contents

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)


	Six Months Ended December 31,
	2020		2019
Cash flows from operating activities
Net income (loss) including noncontrolling interest	$	21,307	$	(6,431)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	25,689		21,754


Share-based compensation expense	6,100		4,856


Deferred income taxes, net	278		(148)
Loss on disposal of property and equipment	40		89


Changes in assets and liabilities:
Accounts receivable, net	(11,662)		(9,576)
Inventories	(8,779)		(4,856)
Other current and long-term assets	(1,793)		940
Accounts payable	(370)		(5,676)

Income taxes payable	824		453
Accrued and other liabilities	14,299		6,306
Net cash provided by operating activities	45,933		7,711
Cash flows from investing activities

Purchases of property and equipment excluding JV Company	(14,842)		(20,354)
Purchases of property and equipment in JV Company	(9,926)		(12,067)




Proceeds from sale of property and equipment	10		—


Government grant related to equipment	119		1,254
Net cash used in investing activities	(24,639)		(31,167)
Cash flows from financing activities

Withholding tax on restricted stock units	(953)		(195)
Proceeds from exercise of stock options and ESPP	3,197		1,727


Proceeds from borrowings	31,008		33,708
Repayments of borrowings	(29,912)		(20,863)
Principal payments on finance leases	(8,119)		(3,403)
Net cash provided by (used in) financing activities	(4,779)		10,974
Effect of exchange rate changes on cash, cash equivalents and restricted cash	4,120		(347)
Net increase (decrease) in cash, cash equivalents and restricted cash	20,635		(12,829)
Cash, cash equivalents and rest

Price	12.18	EPS	0
Shares	25	P/E	674
MCap	306	P/FCF	-345
Net Debt	-20	EBIT	7
TEV	286	TEV/EBIT	41
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-12-31	Filed 2021-02-08
10-Q	2020-09-30	Filed 2020-11-06
10-K	2020-06-30	Filed 2020-09-02
10-Q	2020-03-31	Filed 2020-05-11
10-Q	2019-12-31	Filed 2020-02-10
10-Q	2019-09-30	Filed 2019-11-12
10-K	2019-06-30	Filed 2019-08-23
10-Q	2019-03-31	Filed 2019-05-03
10-Q	2018-12-31	Filed 2019-02-07
10-Q	2018-09-30	Filed 2018-11-05
10-K	2018-06-30	Filed 2018-08-23
10-Q	2018-03-31	Filed 2018-05-03
10-Q	2017-12-31	Filed 2018-02-08
10-Q	2017-09-30	Filed 2017-11-09
10-K	2017-06-30	Filed 2017-09-05
10-Q	2017-03-31	Filed 2017-05-04
10-Q	2016-12-31	Filed 2017-02-09
10-Q	2016-09-30	Filed 2016-11-07
10-K	2016-06-30	Filed 2016-08-26
10-Q	2016-03-31	Filed 2016-05-10
10-Q	2015-12-31	Filed 2016-02-04
10-Q	2015-09-30	Filed 2015-11-06
10-K	2015-06-30	Filed 2015-08-27
10-Q	2015-03-31	Filed 2015-05-07
10-Q	2014-12-31	Filed 2015-02-06
10-Q	2014-09-30	Filed 2014-11-07
10-K	2014-06-30	Filed 2014-08-29
10-Q	2014-03-31	Filed 2014-05-09
10-Q	2013-12-31	Filed 2014-02-07
10-Q	2013-09-30	Filed 2013-11-06
10-K	2013-06-30	Filed 2013-08-30
10-Q	2013-03-31	Filed 2013-05-06
10-Q	2012-09-30	Filed 2012-11-06
10-K	2012-06-30	Filed 2012-08-31
10-Q	2012-03-31	Filed 2012-05-08
10-Q	2011-12-31	Filed 2012-02-08
10-Q	2011-09-30	Filed 2011-11-08
10-K	2011-06-30	Filed 2011-09-09
20-F	2010-06-30	Filed 2010-09-02

8-K	2021-02-04	Earnings, Exhibits
8-K	2021-02-03	Officers
8-K	2020-11-12
8-K	2020-11-05
8-K	2020-10-05
8-K	2020-08-12
8-K	2020-08-11
8-K	2020-05-05
8-K	2020-02-05
8-K	2019-11-07
8-K	2019-11-04
8-K	2019-08-07
8-K	2019-05-06
8-K	2019-05-02
8-K	2019-02-06
8-K	2018-11-08
8-K	2018-11-01
8-K	2018-09-11
8-K	2018-08-08
8-K	2018-05-09
8-K	2018-05-02
8-K	2018-02-07

EX-10.1	a101yifanliang.htm
EX-10.2	a102yueh-seho.htm
EX-31.1	ex311-aosl12312020q2202110q.htm
EX-31.2	ex312-aosl12312020q2202110q.htm
EX-32.1	ex321-aosl12312020q2202110q.htm
EX-32.2	ex322-aosl12312020q2202110q.htm

AOSL 10Q Quarterly Report

Alpha & Omega Semiconductor Earnings 2020-12-31