SUNNYVALE, Calif., Aug. 10, 2010 (GLOBE NEWSWIRE) -- Alpha and Omega Semiconductor Limited ("AOS") (Nasdaq:AOSL), a designer, developer and global supplier of a broad range of power semiconductors, today announced financial results that are prepared in accordance with International Financial Reporting Standards ("IFRS") for the fiscal fourth quarter and the fiscal year ended June 30, 2010.
The results for the fiscal quarter ended June 30, 2010 are as follows:
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Revenue was $85.5 million, a sequential increase of 10.0% from $77.7 million for the third quarter of fiscal year 2010, and a 45.2% increase from $58.9 million for the fourth quarter of fiscal year 2009. This represents two consecutive quarters of record revenue for the company.
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Gross margin was 26.5%, compared to 26.8% for the third quarter of fiscal year 2010 and 21.9% for the fourth quarter of fiscal year 2009.
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Operating expenses were $14.5 million, compared to $11.5 million for the third quarter of fiscal year 2010 and $9.8 million for the fourth quarter of fiscal year 2009. Operating expenses for the fourth quarter of fiscal year 2010 included share-based compensation expenses of $1.4 million, as compared to $0.6 million and $0.7 million for the third quarter of fiscal year 2010 and for the fourth quarter of fiscal year 2009, respectively.
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Operating profit was $8.1 million, or 9.5% of revenue, compared to $9.3 million, or 12.0% of revenue, for the third quarter of fiscal year 2010 and $3.1 million, or 5.2% of revenue, for the fourth quarter of fiscal year 2009.
- Net profit was $8.9 million, or $0.37 per diluted share, compared to $9.6 million, or $0.47 per diluted share, for the third quarter of fiscal year 2010 and $3.8 million, or $0.19 per diluted share, for the fourth quarter of fiscal year 2009. Net profit on a non-IFRS basis, or non-GAAP net profit, was $10.5 million, or $0.43 per diluted share, compared to $10.3 million, or $0.50 per diluted share, for the third quarter of fiscal year 2010 and $4.6 million, or $0.23 per diluted share, for the fourth quarter of fiscal year 2009. Non-GAAP net profit excluded share-based compensation expenses of $1.5 million, $0.7 million and $0.8 million for the fourth quarter of fiscal year 2010, the third quarter of fiscal year 2010 and the fourth quarter of fiscal year 2009, respectively.
The results for the fiscal year ended June 30, 2010 are as follows:
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Revenue was $301.8 million, an increase of 63.1% from $185.1 million for fiscal year 2009.
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Gross margin was 26.6%, compared to 21.1% for fiscal year 2009.
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Operating expenses were $47.2 million, compared to $39.7 million for fiscal year 2009. Operating expenses included share-based compensation expense of $3.1 million and $3.3 million for fiscal years 2010 and 2009, respectively.
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Operating profit was $33.1 million, or 11.0% of revenue, compared to an operating loss of $0.7 million, or -0.4% of revenue, for fiscal year 2009.
- Net profit was $37.6 million, or $1.78 per diluted share, compared to a net loss of $0.5 million, or $0.07 loss per diluted share, for fiscal year 2009. Non-GAAP net profit was $41.0 million, or $1.94 per diluted share, compared to $3.0 million, or $0.15 per diluted share, for fiscal year 2009. Non-GAAP net profit excluded share-based compensation expenses of $3.4 million and $3.5 million for fiscal years 2010 and 2009, respectively.
"We are very pleased with our strong financial performance, and we reached the milestone of over $300 million annual revenue by growing 63% over the previous fiscal year. During the past fiscal year, we generated approximately $30 million in cash flow from operating activities," said Mike Chang, Chief Executive Officer and Chairman of AOS. "We successfully completed our IPO during the fourth quarter of fiscal year 2010, and we believe that our public company status will enhance our market position to facilitate continued growth of our company. With over 140 new products introduced during the fiscal year, we believe that we are well positioned to continue to expand our customer base and markets served."
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. AOS undertakes no obligation to update these statements.
Revenue for the first quarter of fiscal year 2011 is expected to be in the range of $89.0 to $92.5 million, representing a sequential growth of approximately 4% to 8%. Operating profit is expected to be in the range of $7.0 million to $8.0 million, which includes an estimated share-based compensation of approximately $1.6 million.
Conference Call and Webcast
AOS plans to conduct an investor teleconference and live webcast to discuss the financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2010 and other business matters today, August 10, 2010 at 2:00 pm PT / 5:00pm ET. To participate in the live call, analysts and investors should dial 877-312-8797 (or 253-237-1194 if outside the U.S.). To access the live webcast and the subsequent replay of the conference call, which will be available for seven days after the live call, go to the "Events & Presentations" section of the company's investor relations website, http://investor.aosmd.com.
Forward Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, projected amount of revenues, gross margin, and operating profit, expectation with respect to operating expenses and cost reduction measures, expectation with respect to manufacturing capacity, anticipated demand for our products, references to our ability to expand customer base and achieve revenue growth, and other statements under the section entitled "Business Outlook." Forward looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, our ability to introduce or develop new and enhanced products that achieve market acceptance; the actual product performance in volume production; the quality and reliability of our product, our ability to achieve design wins, the general business and economic conditions, our ability to identify and consummate strategic transactions; the state of semiconductor industry and seasonality of our markets, and other risks as described in our SEC filings, including the registration statement on Form F-1 filed on March 31, 2010, as amended and supplemented, and other filings with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and AOS undertakes no duty to update such information, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with IFRS, we disclose certain non-IFRS, or non-GAAP, financial measures, including non-GAAP net profit and earnings per share. These supplemental measures exclude share-based compensation expenses that are non-cash charges. We believe that non-GAAP financial measures can provide useful information to both management and investors by excluding certain non-cash expenses that are not indicative of our core operating results. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the term used in this press release, non-GAAP net profit, does not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for this limitation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable IFRS measures in the tables attached to this press release. Investors are encouraged to review the related IFRS financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable IFRS financial measure.
About Alpha and Omega Semiconductor
Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer and global supplier of a broad range of power semiconductors, including a wide portfolio of Power MOSFET and Power IC products. AOS seeks to differentiate itself by integrating its expertise in device physics, process technology, design and advanced packaging to optimize product performance and cost, and its product portfolio is designed to meet the ever increasing power efficiency requirements in high volume applications, including portable computers, flat panel TVs, battery packs, portable media players and power supplies. For more information, please visit http://www.aosmd.com.
The following consolidated financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Boards.
| Alpha and Omega Semiconductor Limited | |||
| Consolidated Balance Sheets | |||
| IFRS | |||
| (in thousands) | |||
| (unaudited) | |||
| June 30, | March 31, | June 30, | |
| 2010 | 2010 | 2009 | |
| ASSETS | |||
| Noncurrent assets: | |||
| Property, plant and equipment | $ 44,163 | $ 33,486 | $ 28,254 |
| Intangible assets | 3,820 | 4,058 | 5,120 |
| Investment in an associate | 25,693 | 24,313 | 19,399 |
| Deferred income tax assets | 2,296 | 2,283 | 1,218 |
| Other noncurrent assets | 458 | 472 | 298 |
| Total noncurrent assets | 76,430 | 64,612 | 54,289 |
| Current assets: | |||
| Inventories | 28,315 | 26,045 | 22,803 |
| Trade receivables | 30,639 | 22,822 | 20,912 |
| Other current assets | 3,075 | 5,276 | 1,945 |
| Restricted cash | 707 | -- | -- |
| Cash and cash equivalents | 119,001 | 58,252 | 60,416 |
| Total current assets | 181,737 | 112,395 | 106,076 |
| Total assets | $ 258,167 | $ 177,007 | $ 160,365 |
| EQUITY | |||
| Capital and reserves | |||
| Common shares | $ 44 | $ 16 | $ 16 |
| Convertible preferred shares | -- | 21 | 21 |
| Share premium | |||
| Common shares | 103,803 | 187 | 89 |
| Convertible preferred shares | -- | 50,170 | 50,170 |
| Other reserves | 17,946 | 16,423 | 14,491 |
| Retained earnings | 67,603 | 58,658 | 30,012 |
| Total equity | 189,396 | 125,475 | 94,799 |
| LIABILITIES | |||
| Noncurrent liabilities: | |||
| Borrowings | -- | -- | 8,610 |
| Deferred income tax liabilities | 25 | 86 | 95 |
| Deferred rent - Long term | 670 | -- | -- |
| Finance lease | 436 | 579 | 1,019 |
| Total noncurrent liabilities | 1,131 | 665 | 9,724 |
| Current liabilities: | |||
| Trade and other payables | 47,584 | 35,410 | 36,146 |
| Current income tax liabilities | 3,917 | 3,622 | 2,545 |
| Borrowings | 3,680 | -- | 5,246 |
| Trade and other payable to an associate | 10,100 | 9,747 | 9,281 |
| Finance lease | 571 | 562 | 386 |
| Provisions | 1,788 | 1,526 | 2,238 |
| Total current liabilities | 67,640 | 50,867 | 55,842 |
| Total liabilities | 68,771 | 51,532 | 65,566 |
| Total equity and liabilities | $ 258,167 | $ 177,007 | $ 160,365 |
| Alpha and Omega Semiconductor Limited | |||||
| Consolidated Statements of Income (Loss) | |||||
| IFRS | |||||
| (in thousands, except per share amounts) | |||||
| (unaudited) | |||||
| Three Months Ended | Fiscal Year Ended | ||||
| June 30, | March 31, | June 30, | June 30, | ||
| 2010 | 2010 | 2009 | 2010 | 2009 | |
| Revenue | $ 85,469 | $ 77,672 | $ 58,879 | $ 301,840 | $ 185,076 |
| Cost of goods sold | 62,807 | 56,845 | 45,962 | 221,537 | 146,076 |
| Gross profit | 22,662 | 20,827 | 12,917 | 80,303 | 39,000 |
| Operating expenses: | |||||
| Research and development | 5,945 | 5,447 | 4,757 | 20,985 | 19,173 |
| Selling, general and administrative | 8,580 | 6,093 | 5,087 | 26,178 | 20,569 |
| Total operating expenses | 14,525 | 11,540 | 9,844 | 47,163 | 39,742 |
| Operating profit/(loss) | 8,137 | 9,287 | 3,073 | 33,140 | (742) |
| Finance income | 9 | 11 | 31 | 39 | 648 |
| Finance costs | (27) | (31) | (134) | (188) | (587) |
| Finance income/(loss), net | (18) | (20) | (103) | (149) | 61 |
| Share of profit/(loss) of an associate | 1,380 | 815 | 598 | 6,294 | (35) |
| Profit/(loss) before income tax | 9,499 | 10,082 | 3,568 | 39,285 | (716) |
| Income tax expenses (benefit) | 554 | 494 | (217) | 1,694 | (174) |
| Net profit/(loss) | $ 8,945 | $ 9,588 | $ 3,785 | $ 37,591 | $ (542) |
| Earnings (loss) per share | |||||
| Basic per share | $ 0.48 | $ 1.20 | $ 0.48 | $ 3.55 | $ (0.07) |
| Diluted per share | $ 0.37 | $ 0.47 | $ 0.19 | $ 1.78 | $ (0.07) |
|
Weighted-average number of shares used in computing earnings(loss) per share |
|||||
| Basic shares | 18,526 | 7,970 | 7,917 | 10,594 | 7,914 |
| Diluted shares | 24,129 | 20,601 | 19,789 | 21,170 | 7,914 |
| Alpha and Omega Semiconductor Limited | ||
| Consolidated Statements of Cash Flows | ||
| IFRS | ||
| (in thousands) | ||
| (unaudited) | ||
|
Fiscal Year Ended June 30, |
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| 2010 | 2009 | |
| Cash flows from operating activities | ||
| Cash generated from operations | $ 31,487 | $ 24,430 |
| Interest paid | (188) | (587) |
| Income tax paid | (1,512) | (1,127) |
| Net cash generated from operating activities | 29,787 | 22,716 |
| Cash flows from investing activities | ||
| Purchase of property, plant and equipment | (13,834) | (10,067) |
| Purchases of intangible assets | (146) | (5) |
| Proceeds from sale of property, plant and equipment | 2 | 168 |
| Restricted cash released (placed) | (707) | 200 |
| Investment in an associate | -- | (40) |
| Net cash used in investing activities | (14,685) | (9,744) |
| Cash flows from financing activities | ||
| Net proceeds from (payments of issuance costs for) the IPO | 53,872 | -- |
| Proceeds from exercise of share options | 172 | 51 |
| Repurchase of common shares | -- | (300) |
| Proceeds from borrowing | 3,680 | 6,000 |
| Repayment of borrowing | (13,856) | (2,144) |
| Principal payment on finance lease | (398) | (239) |
| Net cash generated from financing activities | 43,470 | 3,368 |
| Net increase in cash and cash equivalents | 58,572 | 16,340 |
| Cash and cash equivalents at beginning of period | 60,416 | 44,095 |
| Exchange gains (losses) on cash and cash equivalents | 13 | (19) |
| Cash and cash equivalents at end of period | $ 119,001 | $ 60,416 |
| Supplemental cash flow disclosures: | ||
|
Changes of property, plant and equipment included in trade and other payables |
$ 9,680 | $ 251 |
| Changes of capitalized IPO costs included in trade and other payables | $ 493 | $ -- |
| Alpha and Omega Semiconductor Limited | |||||
| Reconciliation of Net Profit (Loss) to non-GAAP Net Profit (loss) | |||||
| (in thousands, except per share amounts) | |||||
| (unaudited) | |||||
| Three Months Ended | Fiscal Year Ended | ||||
| June 30, | March 31, | June 30, | June 30, | ||
| 2010 | 2010 | 2009 | 2010 | 2009 | |
| IFRS net profit/(loss) | $ 8,945 | $ 9,588 | $ 3,785 | $ 37,591 | $ (542) |
| Share-based compensation: | |||||
| Cost of goods sold | 171 | 81 | 51 | 304 | 267 |
| Research and development | 352 | 193 | 235 | 948 | 1,172 |
| Selling, general and administrative | 1,023 | 400 | 513 | 2,192 | 2,102 |
| Total share-based compensation | 1,546 | 674 | 799 | 3,444 | 3,541 |
| Non-GAAP net profit | $ 10,491 | $ 10,262 | $ 4,584 | $ 41,035 | $ 2,999 |
| Non-GAAP diluted EPS | $ 0.43 | $ 0.50 | $ 0.23 | $ 1.94 | $ 0.15 |
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Weighted-average number of shares used in computing non-GAAP earnings per share |
|||||
| Diluted shares | 24,129 | 20,601 | 19,789 | 21,170 | 19,882 |