Alpha and Omega Semiconductor (AOSL) Q4 2024 earnings summary

Executive summary

• Fiscal Q4 revenue reached $161.3 million, up 7.5% sequentially and flat year-over-year, with results in line with guidance for both revenue and gross margin.

• Non-GAAP EPS was $0.09, with non-GAAP net income of $2.6 million; GAAP net loss was $2.7 million ($0.09/share).

• Sequential growth was seen in all major segments, with notable strength in gaming, tablets, AI, graphics cards, e-mobility, and home appliances.

• Inventory corrections are largely complete, and seasonality is returning to end markets.

• The company is transitioning from a component supplier to a total solutions provider, leveraging strengths in high-performance silicon, advanced packaging, and intelligent ICs.

Financial highlights

• Q4 revenue was $161.3 million, up 7.5% sequentially and flat year-over-year; full-year revenue was $657.3 million, down 4.9% from FY23.

• Non-GAAP gross margin was 26.4%, up from 25.2% last quarter but down from 28.5% a year ago; GAAP gross margin was 25.7%.

• Non-GAAP operating expenses were $39.3 million; GAAP operating loss was $1.5 million, non-GAAP operating income was $3.2 million.

• Non-GAAP EPS was $0.09, compared to a loss of $0.04 last quarter and $0.19 a year ago.

• Cash and cash equivalents at quarter end were $175.1 million; Q4 operating cash flow was $7.1 million.

Outlook and guidance

• September quarter revenue is expected to be approximately $180 million, ±$10 million.

• GAAP gross margin guidance is 25% ±1%, with non-GAAP gross margin expected at 26.4% ±1%.

• Non-GAAP operating expenses are projected at $40 million ±$1 million.

• CapEx for the September quarter is expected to range from $6 million to $8 million.

• Anticipates further recovery in September quarter, driven by smartphone launches, PCs, gaming, and wearables.