Alpha and Omega Semiconductor Limited

Good day and thank you for standing by. Welcome to the Alpha and Omega Semiconductor Fiscal Q1 2021 earnings call. At this time, all participants are in 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 keypad. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. So I would like to hand the conference over to your host, Mr. Gary Dvorak.

Sir, you may begin. Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal 2022 first quarter financial results. I'm Gary Dvorak, Investor Relations Representative for AOS. With me today are Dr. Mike Chang, our CEO, Stephen Chang, our president, and Yvonne Leong, our CFO. This call is being recorded and broadcast live over the web. The replay will be available for seven days following the call via the link in the investor relations section of our website. Our call will proceed as follows. Mike will begin with strategic highlights. Then Stephen will provide business updates and a detailed segment report. After that, Yvonne will review the financial results and provide guidance for the December quarter. Finally, we will have the question and answer session. The earnings release is distributed over wire services today, November 4th, 2021, 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 the earnings release. We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the 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 obligation to update the information provided in today's call. Now, I will turn the call over to our CEO, Dr. Mike Chang, to provide strategic highlights. Mike?

Thanks, Gary. I would like to welcome everyone to today's call. I am excited to be speaking with all of you again today. In a moment, I will review the operating highlights of the September quarter, which were strong. Before I do that, I want to highlight an important milestone in the history of AOS and what it means in a broader context. Today, you see that we earned over $1 per share on a non-GAAP basis. We believe this legitimately reflects real economical earnings power of over $4 per share annually. Why do we think this earning power is sustainable? Because of the early momentum we have demonstrated over the past two years. Because of the achievement of this milestone, and because of our prospects for growth in the years ahead. Yes, we are in a cyclical industry, so our EPS on a quarterly basis will fluctuate. But in most quarters, we believe that a quarterly EPS of more than $1 is achievable. And when you leverage our earnings, we believe that $4 to $5 per share is the annual earnings power of business we have built. Think about what we have achieved over the years. We have developed new silicon and packaging platforms to expand our stand and offer higher performance products. We broaden our demo technology to cover a full range of voltage applications. and have established a strong power IC portfolio in addition to a lineup of IGBT and module solutions. This has allowed us to diversify beyond our computing base into consumer, communications, and industrial markets. This also led to the success we see today in smartphones, home appliances, and next-generation computing applications. We have also engaged with our customers, strengthened the relationship and have become their trusted strategic partner. We count among our expanding customer base some of the most well-known, sophisticated and successful electronics companies in the world. Giants that are leaders in mobile phones, computing and gaming. All this work translates not only into earnings, but into earnings power. Our product portfolio is outstanding, but our R&D capability is even more valuable because it will keep our product line fresh, competitive, and relevant in the years ahead. Our design wins are wonderful, but our sales and marketing teams are even more valuable because they will drive more design wins in the years ahead. Our production capacity is state-of-the-art, but our production teams mean more to us because they will ensure we continue to be state-of-the-art a decade from now. That is the difference between earnings, which can come and go in our industry, and earnings power, which is a long-term source of value. When we look at our companies, we see valuable earnings power of $4 to $5 a share annually. We intend to build even better organization and grow the earnings power even more. With our stock price in the middle 30s range, the market is assigning a multiple of only seven to nine times our clearly demonstrated earnings power. Today, We celebrated this milestone of earning $1 a share in a single quarter. The joy our team has today is justified, but it is also just the beginning. Earnings power does not come on a single day or a quarter. It comes from a lifetime of work. This milestone has energized our team to serve our customers even better, make our product even more competitive, and create even more value for our shareholders. In this long-term effort, we thank all of you for your confidence in us and your support. Now, let me turn to other important highlights of the quarter. First fiscal quarter results were strong across the whole P&L. Revenue was $187 million. Non-GAAP gross margin was 35.3%. And the non-GAAP earnings per share were $1.06. We delivered double-digit growth in each of our market segments with record quality revenue excellent profitability and outstanding bottom line performance. Let me update you a critical issue. How we are dealing with the supply chain constraint in the broader semiconductor industry. We are expanding our production capacity in our Oregon fab, ramping production in our joint venture fab in Chongqing, and leveraging our relationships with our foundry partners to secure wafer supply Stephen will provide more details on our strategy later on this call. We believe we are doing an outstanding job in managing the industry-wide supply chain constraints. We want to be sure we minimize any interruptions to our customers. While our own supply is tight, we are in an excellent position to access both internal and external capacity to support our business. In summary, This strong quarter once again proved the strength of the team we have at AOS. I am very proud of and thankful for our team's execution and tireless work. We continue to believe that we have the right foundation for long-term growth and the right technology in place to ensure that we are successful in scaling our business. More importantly, We have the people and the capabilities to ensure that our earnings power expands even more in the years ahead. We are on track to achieve our mission of being a trusted technology partner and global supplier of a broad portfolio of power semiconductors. Now, I will turn the call over to Stephen for an update on our business and a detailed segment report. Stephen?