Alpha and Omega Semiconductor Limited

Good afternoon, ladies and gentlemen. Thank you for joining today's Alpha and Omega Semiconductor Fiscal Q4 and Fiscal Year 2024 Earnings Call. My name is Tia, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the call over to your host, Steven Paleo, with the Blue Shirt Group. Please proceed.

Good afternoon, everyone, and welcome to Alpha and Omega's Tonight Conductor's conference call to discuss fiscal 2024 fourth quarter and annual financial results. I'm Stephen Palale, investor relations representative for AOS. With me today are Stephen Chang, our CEO, and Yifan Liang, our CFO. This call is being recorded and broadcast live over the web. A replay will be available for seven days following the call via link in the investor relations section of our website. Our call will proceed as follows today. Stephen will begin business update, including strategic highlights and a detailed segment report. After that, Yifan will review financial results and provide guidance for the September quarter. Finally, we will have a Q&A session. The earnings release was distributed over the wire today, August 7, 2024, after the market closed. The release is also posted on the company's website. Our earnings release and this presentation include 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. 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. 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'll turn the call over to our CEO, Steven Chang. Steven?

Thank you, Steve. Welcome to Alpha and Omega's fiscal Q4 earnings call. I will begin with a high-level overview of our results and then jump into segment details. We deliver fiscal Q4 results in line with our guidance for revenue and gross margin. Revenue was $161.3 million. Non-GAAP gross margin was 26.4%. Non-GAAP EPS was 9 cents. As we mentioned last quarter, inventory corrections across the majority of our end markets are now largely behind us, and seasonality is returning to more normalized trends. While visibility on the slope of the recovery is limited, the increasing breadth of demand is encouraging. For the June quarter, we saw sequential growth in each of our major segments, with relative strength coming from tablets, AI, graphics cards in our computing segment, gaming and home appliances within consumer, e-mobility, DC motors and quick chargers in the industrial segment, and a regional shift towards a Tier 1 US smartphone customer within communications. The PC segment, however, is taking longer to recover than originally expected. Looking into the September quarter, we expect PCs and servers to grow sequentially, while tablets sustain the strong current run rate within computing. The consumer segment will likely see continued strength in gaming and a strong seasonal pickup from wearables, offset by slower home appliances. Smartphones will drive sequential growth in communication, while AC, DC power supplies and quick chargers are relatively stronger in industrial. Looking beyond 2024, AOS is transitioning from a component supplier to a total solutions provider in many areas where we can leverage our core strengths in high-performance silicon, advanced packaging, and intelligent ICs to penetrate new opportunities and drive higher BOM content. We are building on customer relationships to capture market share with a broad product portfolio. For example, we are leveraging our strength in graphics cards and introducing new vCore products for opportunities in advanced computing and AI data centers. Within smartphones, we expect to benefit from trends towards foldable, flexible, and multiple screens, increasing AI integration as well as dual cell batteries and higher charging currents for faster charging times. Beyond computing and communication segments, we remain optimistic on the underlying power trends in adjacent markets such as solar, motors, and e-mobility, gaming, home appliances, and power tools. These examples all represent continued growth opportunities primarily driven by the global shift towards more efficient and sustainable energy solutions. With that, let me now cover our segment results and provide some guidance by segment for the next quarter. Starting with computing, June quarter revenue was up 37.6% year-over-year and 4.4% sequentially and represented 44.4% of total revenue. These results were slightly below our original expectation for mid to upper single-digit growth. As mentioned before, we saw relative strength from tablets, AI, and graphics cards in the quarter, offset by a slower PC market recovery. Notably, tablet revenue was at record high, and the contribution from AI and data center-related applications continued to grow. We are excited about opportunities in AI. Demand for accelerator cards remain steady as the industry prepares for a platform transition ramping next year. We are working on multiple opportunities, leveraging our existing relationship with a key graphics card maker, as well as our product portfolio, including new multi-phase vCore controllers and a power stage solution for advanced computing. We're also seeing some ramp in September from a leading power supply maker that is a key supplier to the same AI graphics customer. We are selling our high-performance medium voltage MOSFETs that go into intermediate bus converters for DC-to-DC power conversion. Looking forward into the September quarter, we expect the computing segment to grow mid-single digits sequentially as PCs see a seasonal pickup, while tablets, AI accelerators, and graphics cards remain strong. Turning to the consumer segments, June quarter revenue was down 35.5% year-over-year, but up 19.7% sequentially and represented 17.5% of total revenue. The results were in line with our forecast for double-digit sequential growth and were primarily driven by gaming and home appliances. It is now clear that the inventory correction in gaming is behind us and a seasonal build is underway. The strength in home appliances was better than expected as government incentives in China drove demand. For the September quarter, We forecast low double-digit sequential growth in the consumer segment, driven by strong seasonal pickup from wearables and continuous strength in gaming, offset by slower home appliances. Next, let's discuss the communications segment. Revenue in the June quarter was up 59% year-over-year and 2.1% sequentially, and represented 17% of total revenue. These results were above our flat-ish sequential expectations as we began to see the seasonal pickup from a Tier 1 US smartphone customer, offset by sequential declines from Korea and China OEMs. Looking ahead, we anticipate double-digit sequential growth in the September quarter on seasonal strength ahead of new smartphone launches in the US and increasing demand from China smartphone OEMs. We are benefiting from a mixed shift to more premium phones, and we anticipate rising growth in BOM content as phone makers increase battery charging currents. Now let's talk about our last segment, power supply and industrial, which accounted for 17.1% of total revenue and was down 33.7% year over year, but up 11.3% sequentially. The results were slightly ahead of our forecast for mid to upper single-digit sequential growth driven by strength in the e-mobility segment for e-bikes and e-scooters and DC fans for applications in areas such as data centers. The inventory correction in quick chargers appears complete, as we also saw the beginnings of recovery in the June quarter. Lastly, power tools continued at a steady pace in June. For the September quarter, we expect this segment to grow 15% to 20% sequentially, primarily driven by a solid uptick from quick chargers, as well as strength from ACVC power supplies tied to the seasonal build in PCs. In closing, the June quarter was in line with our expectations and marked a solid conclusion to our fiscal 2024 performance. The rolling inventory corrections we experienced over the past year in nearly every one of our end markets are now largely behind us, and some markets like smartphones are starting to return, while new markets like AI are emerging. We expect seasonal growth in the September quarter, primarily driven by PCs, smartphones, wearables, and gaming. Looking to the next cycle, we are poised for growth, bolstered by advanced technology, a diversified product portfolio addressing a broadening array of end markets, and a premier customer base across all product lines. Power management underpins key trends such as AI, digitalization, connectivity, and electrification, especially as we move towards a sustainable low-carbon society. We have steadfast in executing our technology roadmap. Customers increasingly view us as a total solution provider, allowing us to capture a greater portion of the bill of materials and ultimately supporting growth that outpaces industry over the long term. With that, I will now turn the call over to Yifan for a discussion of our fiscal fourth quarter and fiscal year financial results and our outlook for the next quarter.