Alpha and Omega Semiconductor Limited

Ladies and gentlemen, thank you for standing by and welcome to the Alpha and Omega Semiconductor Report's financial results for the fiscal third quarter of 2020. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, So Young Jung. Thank you. Please go ahead, madam.

Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal 2020 third quarter financial results. I'm So Young Jung, investor relations representative for the company. With me today are Dr. Mike Chang, our CEO, Yifan Liang, our CFO, and Stephen Cheng, our executive vice president. This call is being recorded and broadcasted live over the web and can be accessed for seven days following the call via the link in the investor relations section of our website at www.aosmd.com. Mike will begin with a review of business overview for the quarter. Then Stephen will provide a detailed segment report. After that, Yifan will continue with a review of financial results for the quarter and guidance for the next quarter. Then we'll have the question and answer session. The earnings release was distributed by BusinessWire today, May 5th, 2020, after the close of the market. The release is also posted on the company's website. Our earnings release and this presentation include certain non-GAAP financial measures We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures that we provide. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release. We remind you that during the conference call, we'll make certain forward-looking statements, including discussions of business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially from such expectations. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligations to update information provided in today's call. I'll turn the call over to our CEO, Mike, to provide an overview of our business and the impact of COVID-19 pandemic. Mike.

Thank you, Soyoung. Welcome, everyone. And thank you for joining us for our March quarter earnings call. I hope that all of you and your families are safe and healthy. As we navigate the unprecedented challenges of this COVID-19 pandemic, we think it is important to update you on our business operations and how we are staying resilient. Before we begin the usual review of quality results, I will take a few minutes to talk about the challenges and risks we face and our actions to mitigate them. As I said on our last earnings call, our top priority is health and well-being of our employees and their families. In addition to the mandatory measures enacted by federal, state, and regional agencies, we proactively implemented precautionary measures and established operating guidelines to safeguard our employees and their families. As part of our business continuity plan, we instituted a work-from-home policy before it was mandatory. This helped us mitigate the impact of sudden disruptions to our operations and ensured that our employees had full access to the connectivity infrastructure required to work remotely. We are thankful that our 4,000 of our employees are currently safe and well and our global operations are running. In addition to safeguarding our employees, we are committed to fully supporting our customers during these trying times. When we discussed our outlook for March quarter, back in early February, our guidance factored in an estimate of our lost production in China. As it turned out, production in China was severely disrupted during February. However, we were fortunate that we maintained partial production throughout the Lunar New Year holiday, during which we ran to 24x7. When more people returned to work after the holiday, our employees went above and beyond their typical role to ensure delivery of our products while complying with various governmental orders and managing logistical challenges. The Oregon Fab also ran nonstop during the quarter. Our diversified manufacturing footprint helped us quickly respond to shifting market demand. Since March, our total production level has recovered significantly, faster than we anticipated. Today, I am pleased to report that we are running at the level we expected. Obviously, COVID-19 actively impact our customers. Some of them are recovering more slowly than others. The factories located in the COVID-19 epicenters while others are exposed to greater supply chain disruption because they store numerous components to complete an entire kit of parts. Public restrictions and logistical challenges also restrict our ability to support customers with demo boards, evaluation kits, and design-in support. With utmost dedication, we are working closely and creatively to support our customers in every way we can. We are providing excellent service and meeting demand by being flexible and Limbo with production schedules, thus demonstrating solidarity with our customers. At this stage, we are able to work around temporary disruptions to achieve our operating objectives. While visibility beyond June quarter is very limited, given the uncertainty of the impact of COVID-19, we are managing risk. by optimizing product mix, vigilantly seeking new business opportunities, and accelerating product time to market. Against this backdrop, we reported an in-line March quarter with revenue within our guidance range. Yifan will provide details of our March quarter results later on the call. Let me now touch on some key business highlights and what we are seeing in the current environment. Even with the overall downturn in the economy, near-term demand for computing and gaming is very strong. This is due to the shelter in place and the social distancing mandate, which are giving the need for higher computing power for working from home activities, online learning, and gaming. The computing industry has been expanding and transforming to support and connect business and individuals worldwide. While we have rapidly diversified into other applications, such as mobile and home applying, we remain the leader in power management, especially in the computing area. Our unwavering commitment in the past years to our computing customers has rewarded us with much welcomed business during this downturn. In difficult times like these, supporting customers through the uninterrupted supply of our products is more important than ever. Also noteworthy is that Our Chongqing JV is starting to fulfill its purpose as highlighted in our strategic plan for sustainable growth growth. Indeed, it has played a critical role in enabling us to meet the surging demand in the computing market. As you would expect, given the environment, we are prudently managing expenses. We are reducing non-essential spending while also pursuing strategic and critical R&D projects in order to expand our market reach and stand. Stephen is diligently working with our R&D team on this special project and he will provide more details later on the call. Finally, I want to highlight that our core business is generating consistent and sustained cash flow. Our balance sheet is strong. Yifan will provide you with more color on our cash position. As I look at our performance in the quarter, I am both humbled by and proud of our amazing group of employees. They delivered an extraordinary performance with strong sense of ownership and commitment. while sustaining a safe and healthy working environment. We look forward to a gradual return to normality for our country, our industry, and our economy. The power semiconductor market is large and growing, and we are determined and committed to accomplish our mission to rapidly expand and become a top tier supplier in this market. Now, I will turn the call over to Stephen for a detailed segment report. Stephen.