Alpha and Omega Semiconductor (AOSL) investor relations material

Executive summary

• Fiscal Q3 2026 revenue was $163.8 million, up 0.9% sequentially and down 0.5% year-over-year, slightly above guidance midpoint, with advanced computing offsetting PC market softness and memory shortages.

• GAAP gross margin was 21.1%, non-GAAP gross margin was 21.7%; GAAP net loss was $13.8 million ($0.46 per share), non-GAAP net loss was $8.3 million ($0.28 per share).

• Advanced computing, including AI, servers, and graphics, drove growth and now represents 25% of the computing segment.

• The company completed the sale of a 20.3% equity interest in its JV Company for $150 million, receiving $135.9 million in cash installments by March 31, 2026.

• Strategic focus remains on expanding BOM content, transitioning to application-specific solutions, and targeted R&D investments.

Financial highlights

• Revenue was $163.8 million, down 0.5% year-over-year and up 0.9% sequentially.

• DMOS revenue was $115.1 million (up 13.9% sequentially, up 7.7% YoY); Power IC revenue was $46.9 million (down 20.3% sequentially, down 14.1% YoY).

• Operating loss (GAAP) was $14.1 million, up from $13.6 million last quarter and $10.7 million a year ago.

• Non-GAAP operating expenses were $44.3 million, up from $41.3 million last quarter.

• Cash, cash equivalents, and restricted cash totaled $190.3 million at quarter end.

Outlook and guidance

• June quarter (Q4 2026) revenue expected at $168 million ±$10 million.

• GAAP gross margin guidance: 22.3% ±1%; non-GAAP gross margin: 23% ±1%.

• CapEx for June quarter projected at $15–$17 million.

• Sequential margin improvement expected, driven by utilization and product mix.

• Management anticipates modest revenue growth for 2026, with stronger growth as new programs ramp in 2027.