Alpha and Omega Semiconductor Limited (AOS) reported its financial results for the three months ended September 30, 2024, showing a slight increase in revenue but a significant decline in profitability compared to the same period in 2023. Revenue for the quarter reached $181.9 million, a 0.7% increase from $180.6 million in the prior year. This growth was primarily driven by a $1.0 million increase in power discrete products and a $0.2 million rise in power integrated circuit (IC) products, despite a 13.1% decrease in average selling prices.
Gross profit for the quarter was $44.5 million, down from $50.9 million in 2023, resulting in a gross margin of 24.5%, a decrease of 3.7 percentage points year-over-year. The decline in gross profit was attributed to higher material costs and a less favorable product mix. Operating income turned negative, with a loss of $252,000 compared to a profit of $9.4 million in the same quarter last year. Net income also fell sharply to a loss of $2.5 million, down from a profit of $5.8 million in 2023, leading to a net loss per share of $0.09 compared to earnings of $0.21 per share in the prior year.
The company’s operating expenses increased, with research and development expenses rising to $22.5 million, up 1.7% from $22.1 million in 2023, largely due to increased share-based compensation. Selling, general, and administrative expenses also increased by 14.8% to $22.3 million, driven by a significant rise in share-based compensation expenses.
AOS's cash position remained stable, with cash, cash equivalents, and restricted cash totaling $176.2 million as of September 30, 2024, slightly up from $175.5 million at the end of June 2024. However, net cash provided by operating activities decreased to $11.0 million from $13.8 million in the prior year.
Strategically, AOS continues to focus on product diversification and innovation, having introduced 29 new products in the third quarter of fiscal year 2024. The company also maintains a joint venture in Chongqing, China, where it holds a 42.8% equity interest, which has been a critical component of its manufacturing strategy.
Overall, AOS's financial performance reflects challenges in profitability despite a modest increase in revenue, influenced by market conditions and rising operational costs.
About ALPHA & OMEGA SEMICONDUCTOR Ltd
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