AOSL · Alpha and Omega Semiconductor Limited

Alpha and Omega Semiconductor's fiscal Q3 2026 results showed revenue of $163.8 million, a modest 0.9% increase from the prior quarter's $162.3 million but 0.5% below the year-ago $164.6 million, reflecting strength in Advanced Computing including AI, servers, and graphics, alongside growth from a Tier One U.S. smartphone customer, offset by seasonal PC softness and consumer weakness. GAAP gross margin contracted to 21.1% from 21.5%, with Non-GAAP at 21.7% versus 22.2%, pressured by product mix and higher operating expenses of $48.6 million (up from $48.4 million QoQ). Operating loss widened to $14.1 million GAAP and $8.7 million Non-GAAP, leading to a GAAP net loss of $13.8 million or $(0.46) per diluted share. CEO Stephen Chang noted these quarters likely marked the bottom for revenue and margins, citing broadening demand in medium-voltage MOSFETs for AI infrastructure and increasing BOM content in smartphones and PCs. Operating cash use was $8.3 million, with cash at $190.3 million. Q4 guidance signals recovery with revenue near $168 million (±$10M), GAAP gross margin 22.3% (±1%), and Non-GAAP 23.0% (±1%), alongside higher op ex at $52M GAAP. Management anticipates modest calendar 2026 growth despite memory pricing risks, positioning for 2027 ramps via R&D in power ICs and high-performance apps across computing (49.1% of revenue), communications (20.6%), power supply/industrial (17.4%), and consumer (11.8%) segments.