Alpha and Omega Semiconductor Reports Financial Results for Second Quarter of Fiscal 2012
Alpha and Omega Semiconductor Limited reported financial results that are prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for the second quarter of fiscal 2012 ended December 31, 2011.
The results for the second quarter of fiscal 2012 ended December 31, 2011 are as follows:
Revenue was $80.7 million, a sequential decrease of 3.3% from $83.4 million for the prior quarter, and a decrease of 3.9% from $84.0 million for the same quarter in the prior fiscal year. Gross margin was 22.6%, compared to 24.7% for the prior quarter and 27.6% for the same quarter in the prior fiscal year.
Operating expenses were $15.9 million, compared to $17.7 million for the prior quarter and $15.6 million for the same quarter in the prior fiscal year. Non-GAAP operating expenses were $14.6 million, compared to $16.1 million for the prior quarter and $14.6 million for the same quarter in the prior fiscal year. Non-GAAP operating expenses excluded share-based compensation expense of $1.3 million, $1.1 million and $1.1 million for this quarter, the prior quarter and the same quarter in the prior fiscal year, respectively. In addition, non-GAAP operating expenses excluded U.S. GAAP conversion costs of $0.4 million for the prior quarter.
Operating income was $2.3 million, compared to $2.9 million for the prior quarter and $7.5 million for the same quarter in the prior fiscal year. Non-GAAP operating income was $3.8 million, compared to $4.6 million for the prior quarter and $8.8 million for the same quarter in the prior fiscal year. Non-GAAP operating income excluded share-based compensation expense of $1.5 million, $1.2 million and $1.2 million for this quarter, the prior quarter and the same quarter in the prior fiscal year, respectively. In addition, non-GAAP operating income excluded U.S. GAAP conversion costs of $0.4 million for the prior quarter.
Net income was $1.5 million, or $0.06 per diluted share, compared to $2.1 million, or $0.08 per diluted share, for the prior quarter and $8.7 million, or $0.36 per diluted share, for the same quarter in the prior fiscal year. Non-GAAP net income, excluding share-based compensation expense and U.S. GAAP conversion costs, was $2.9 million, or $0.12 per diluted share, compared to $3.8 million, or $0.15 per diluted share, for the prior quarter and $9.9 million, or $0.41 per diluted share, for the same quarter in the prior fiscal year.
"We were able to maintain and in some cases slightly increased our market share during the quarter, although our margin was pressured by average selling price erosion due to continued softness in the macro economy. We were able to achieve higher than projected earnings through reduction of our operating expenses," said Dr. Mike Chang, Chief Executive Officer and Chairman of AOS. "We further reduced our internal inventory level during the quarter; in addition, our channel inventory also decreased as sell-through from our distributors exceeded ship-in revenue. In recent weeks, we have observed solid improvement in our booking pattern."
Dr. Chang continued, "I am glad to report the achievement of several milestones in the execution of our strategic roadmap. During the quarter, we secured an Approved Vendor List (AVL) position at a large globally branded smartphone manufacturer. While only very modest revenue is expected in the near term, this opens the door for us to access the large and growing smartphone market. For the high-voltage product line, we expect to commence small volume production shipment of our leading edge high-voltage IGBT products to a major global industrial company under a supply contract. For the mid-voltage product line, we have gained additional design wins in the telecommunication market. We remain sharply focused on executing our strategic roadmap to achieve broader diversification. We believe that our gross margin will improve progressively as our product mix shifts in concert with our diversification efforts."
"As we look forward, we are on target to close the previously announced acquisition of the IDT fabrication facility this month, and we expect a smooth production ramp after the closing. In summary, we believe that we are well positioned for future growth and margin expansion."
