Alpha and Omega Semiconductor Limited

Good afternoon and thank you for attending the Alpha and Omega Semiconductor Fiscal Q4 2025 Earnings Call. My name is Jason and I'll be the moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. Now I'd like to pass the conference over to your host, Stephen Caleo.

Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal Stephen Peleo, 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 the link in the Investor Relations section of our website. Our call will proceed as follows today. Stephen will begin business updates, including strategic highlights and a detailed segment report. After that, Yifan will review the 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 6, 2025, after the market closed. The release is also posted on the company's website. Our earnings release in 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. 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've seen no obligation to update the information provided in today's call. Now, I'll turn the call over to our CEO, Stephen Chang. Stephen?

Thank you, Stephen. 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 delivered fiscal Q4 revenue results at the high end of our guidance due to better than expected demand in computing, mostly driven by tariff-related customer pull-ins for PCs and strong sequential growth in AI and graphics chips. Our consumer segment also saw strong sequential growth related to wearables and gaming. Overall, total June quarter revenue was $176.5 million. Non-GAAP growth margin was 24.4%. Non-GAAP EPS was 2 cents. Total revenue increased 9.4% year-over-year and 7.2% sequentially. As previously noted, licensing revenue wound down in the March quarter. Excluding licensing and other revenue, our product revenue was up 13.7% year-over-year and 9% sequentially. PowerIC revenue increased 25.8% sequentially and 30.2% year-over-year to a record quarterly high and now represents nearly 40% of total product revenue. The richer mix of PowerIC benefits growth margins and comes from graphics, AI, gaming, and PC markets. On July 14th, we announced an equity transfer agreement with a strategic investor to sell approximately 20.3% of outstanding equity interest of AOS's joint venture in Chongqing, China for an aggregate cash consideration of $150 million. The sale is expected to provide AOS with significant additional capital to continue investing in technology, equipment, and acquisition of assets complementary to our business operations to support key growth areas. In summary, Uncertainties regarding macroeconomy and geopolitics continue. Nonetheless, we are delivering on our commitments and advancing our transformation from a component supplier to a total solutions provider. Our goal is to leverage premier customer relationships to expand market share and increase BOM content with a broader portfolio. 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 29.7% year-over-year and up 17.9% sequentially and represented the majority, or 52.6%, of total revenue. These results were solidly ahead of our original expectation for mid-single-digit sequential growth and more than 15% year-over-year. As mentioned earlier, the upside was fueled by tier-related pull-ins from our PC customers and robust sequential and year-over-year growth in power solutions for AI and graphics applications. Revenue from AI and graphics reached a record high in the June quarter, driven by strong initial shipments for a new AI program. However, we can expect a digestion period in the September quarter as that initial demand is absorbed. Meanwhile, design and activities for additional AI programs remain active and ongoing. In summary, we expect the competing segment to grow low single-digit sequentially and mid-teens year-over-year in the September quarter. Sequential growth will be driven by PCs, with graphics and AI demand remaining relatively strong, though down from June's record levels. Tablet demand is expected to decline. Overall visibility remains limited given the uncertain macroeconomic backdrop and evolving trade policies. Turning to the consumer segment, June quarter revenue was down 5.8% year-over-year and up 23.9% sequentially and represented 15.1% of total revenue. The results were in line with our forecast driven by strong promotional activity in gaming as well as sequential growth from home appliances. Wearables were also better than expected. For the September quarter, we forecast a mid-single-digit sequential decline in the consumer segment driven by gaming and home appliances. but offset by continued growth in wearables. Next, let's discuss the communication segment. Revenue in the June quarter was down 1.7% year-over-year, down 5.2% sequentially, and represented 15.2% of total revenue. The June quarter results were below our guidance for flat sequential growth as a fall-off from smartphones in China more than offset growth from Korea and our Tier 1 U.S. smartphone customers. Smartphone battery PCM revenue continues to outpace the overall market, due to a combination of market share gains, a mid-shift to higher-end phones, and generally higher charging currents, driving increased bond content. Looking ahead to the September quarter, we anticipate more than 10% sequential growth for the communications segment, primarily driven by our Tier 1 US smartphone customer as they prepare for their next phone launch. Demand for China's smartphone is also expected to grow sequentially, while Korea sustains the high level achieved in the June quarter. Now let's talk about our last segment, power supply and industrial, which accounted for 16.8% of total revenue and was up 7.3% year over year and down 9.8% sequentially. The results were below our flags to slightly down sequential forecasts, primarily due to weaker than expected demand from power tools and e-mobility. ACDC power supplies and quick chargers for smartphones did increase sequentially, but it was not enough to offset the weakness elsewhere. As stated before, we are now seeing increases in quick chargers due to increased BOM content driven by higher charging currents. For the September quarter, we expect revenue to grow mid-single digits sequentially for the power supply and industrial segment, primarily driven by a slight pickup in e-mobility offset by lower ACDC power supplies. In closing, we are pleased to report that June quarter results landed at the high end of our guidance, fueled by strong demand across AI and graphics, gaming, wearables, and tariffs-related PC pull-ins. These results highlight the strength of our diversified portfolio and our ability to execute amid dynamic market conditions. Looking ahead to the September quarter, we expect further growth driven by PCs, smartphones, and wearables, as we continue to be excited by the expanding opportunities in AI and graphics. The geopolitical and macroeconomic environment remains fluid as we actively monitor evolving trade policies, capture pull-in related opportunities, and collaborate with customers to minimize disruptions. Our business fundamentals remain strong, anchored by differentiated technology, a broadening product portfolio, and deep relationships with leading global customers. We believe calendar 2025 will be a year of growth, supported by expanding end market exposure, share gains, and rising bond content. While near-term uncertainties persist, we remain focused on execution, innovation, and delivering sustainable value for our stakeholders. With that, I will now turn the call over to Yvonne for a discussion of our fiscal fourth quarter financial results and our outlook for the next quarter. Yvonne?