NASDAQ$AOSL

Alpha and Omega Semiconductor Limited · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

AOS reported flat quarter-over-quarter revenue and a 2.6% increase year-over-year, with non-GAAP EPS of $0.23, despite facing challenging conditions including a DOJ investigation and the coronavirus outbreak.

Alpha and Omega Semiconductor Limited reported financial results for the fiscal second quarter of 2020, ended December 31, 2019. Revenue was $117.9 million, flat quarter-over-quarter and an increase of 2.6% year-over-year. GAAP net loss per share attributable to AOS was $0.04, while non-GAAP earnings per share attributable to AOS was $0.23.

  • Revenue was $117.9 million, flat quarter-over-quarter and up 2.6% year-over-year.
  • GAAP gross margin was 20.7%, while non-GAAP gross margin was 28.3%.
  • GAAP operating loss was $3.4 million, but non-GAAP operating income was $7.6 million.
  • The company is cooperating with a Department of Justice investigation and expects financial performance in the March quarter to be negatively impacted.

Headline financials

Total Revenue

$118M

Previous: $115M+2.6%
EPS (adj)

$0.23

Previous: $0.30-23.3%
Free Cash Flow

-$1.01M

Previous: -$1.55M+35.0%
Net Income

-$1.01M

Previous: -$1.55M+35.0%
Operating Income

-$3.37M

Previous: -$3.2M-5.2%
Gross Profit

$24.4M

Previous: $29.5M-17.3%
Cash & Equivalents

$107M

Previous: $147M-26.9%
Total Assets

$763M

Previous: $734M+3.9%
Stock-Based Comp

$2.49M

Previous: $4.42M-43.7%

Revenue & EPS history

AOS · Revenue · Quarterly

$118M

Q2 2020+2.6%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The company expects weaker than normal seasonality in the March quarter due to the estimated production loss in China caused by the coronavirus outbreak and the suspension of shipments to Huawei. Revenue is expected to be between $106 million and $110 million.

Tailwinds

  • Momentum in design wins and market share gains at multiple customers continues to build across key market segments.
  • Added capacity at Chongqing Joint Venture this year.
  • Better supporting multiple global OEM and ODM customers across mobile, PC and home appliance applications.
  • Bringing up production volumes toward peak season.
  • Remain encouraged by the opportunities ahead.

Headwinds

  • Weaker than normal seasonality in our business during the March quarter due to the estimated production loss in China caused by the coronavirus outbreak and the suspension of shipments to Huawei.
  • Financial performance in the March quarter will be negatively impacted by the Huawei shipment interruption and by additional professional fees incurred in connection with the investigation.
  • Loss of production due to the coronavirus outbreak and extended Chinese New Year holiday will reduce revenue by $6 million to $7 million for the March quarter.
  • The interruption of shipments to Huawei is expected to reduce revenue for the March quarter by approximately $4 million to $5 million.
  • GAAP gross margin is expected to be approximately 17.3% plus or minus 1%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.8%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+3.1%

Avg return

30 days after

49%

31 / 63 earnings

Positive

+28.0%

Q4 2016

Best reaction

-27.4%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-24.2%-23.5%-15.0%
Q2 2026-5.1%-6.9%-11.8%
Q1 2026-27.4%-30.1%-21.6%
Q3 2025+2.9%+23.6%+14.5%
Q2 2025-3.7%-18.2%-36.6%
Q1 2025-21.3%-22.1%+44.6%
Q4 2024+1.4%+0.8%-7.0%
Q3 2024+21.5%+21.8%+33.3%
Q2 2024-11.8%-10.0%-5.7%
Q1 2024-16.6%-18.7%-15.0%
Q4 2023+2.2%-2.3%-12.4%
Q3 2023-0.4%-3.1%+18.5%
Q2 2023-15.4%-20.3%-28.0%
Q1 2023+1.9%+6.1%+7.8%
Q4 2022+14.5%+23.0%-0.1%
Q3 2022-19.1%-25.2%-10.4%
Q2 2022+14.0%+10.6%+5.9%
Q1 2022+14.4%+16.9%+34.3%
Q4 2021+1.1%-4.4%+6.2%
Q3 2021+0.8%-3.8%+7.7%
Q2 2021+2.0%+3.2%+0.0%
Q1 2021+14.0%+18.4%+51.8%
Q4 2020+23.1%+24.9%+15.9%
Q3 2020-1.0%-0.5%+6.4%
Q2 2020-9.4%-11.7%-15.0%
Q1 2020-9.3%-6.4%-11.7%
Q4 2019+27.0%+23.0%+36.6%
Q3 2019-1.6%-9.1%-29.7%
Q2 2019-10.3%-11.5%-8.4%
Q1 2019+18.8%+16.4%+18.9%
Q4 2018+18.8%+11.3%+3.0%
Q3 2018-5.1%-2.6%+0.8%
Q2 2018-3.8%-5.7%+8.1%
Q1 2018-5.0%-4.4%-4.3%
Q4 2017-10.9%-6.9%-12.5%
Q3 2017+24.0%+15.7%+17.8%
Q2 2017+1.4%+1.6%-14.7%
Q1 2017-7.2%+2.5%+1.3%
Q4 2016+28.0%+30.0%+47.0%
Q3 2016+8.2%
Q2 2016+17.3%
Q1 2016+0.2%
Q4 2015+0.8%
Q3 2015-0.5%
Q2 2015+0.3%
Q1 2015-12.6%
Q4 2014+0.5%
Q3 2014-2.1%
Q2 2014-0.7%
Q1 2014-7.3%
Q4 2013-1.8%
Q3 2013-14.9%
Q2 2013-0.3%
Q1 2013+8.0%
Q4 2010+0.7%
Q4 2012+19.0%
Q3 2011-0.7%
Q3 2012+6.7%
Q2 2011-3.6%
Q2 2012+11.1%
Q4 2011-2.7%
Q1 2011-2.7%
Q1 2012+5.0%
Q3 2010

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