AOSL posted $175M in Q4 revenue, missing consensus. CEO Chang blamed delayed PC orders. Data center revenue jumped 40%. Guidance for the September quarter brackets estimates.
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Alpha and Omega Semiconductor (AOSL) reported fiscal fourth-quarter revenue of $175 million, missing the consensus estimate of roughly $178 million. The sequential decline from $182.1 million and the 12% drop from the prior year pushed the company to a GAAP net loss of $6.6 million, or $0.23 per share, compared with a profit of $3.8 million in the third quarter. Adjusted non-GAAP earnings per share came in at $0.13, landing inside the $0.10 to $0.16 range the company laid out in May.
CEO Stephen Chang said the top-line miss came from two segments. Consumer power supply revenue fell 15% sequentially to $25 million. Broad markets dropped 17% to $72 million. Chang blamed the consumer weakness on a delayed seasonal ramp for notebooks and desktops. "We had customers push out orders by a few weeks," he said. "Nothing cancelled, just a timing shift into the September quarter."
The auto and industrial segment slipped 3% to $54 million. Chang said the decline reflected weaker demand from industrial motor-drive customers and a pause in orders from some European automotive Tier 1s working through inventory. "We are not seeing cancellations, the pace of new orders has moderated," he said.
Data center and computing revenue offered a bright spot, rising 40% sequentially to $19 million. The gain came from power-management chips for AI server racks. Chang said AOS is sampling next-generation gallium nitride devices for 48-volt server architectures with three major cloud customers. He cautioned that volume production is still 12 to 18 months away. "We are investing in GaN because the thermal performance at higher switching frequencies is material," he said. "The sampling phase will last a few quarters."
Gross margin narrowed to 24.2% from 25.5% in the prior quarter. CFO Yifan Liang said factory utilization at the company's Oregon and China fabs dipped below 70% during the quarter, adding roughly $2 million in unabsorbed fixed costs. He expects gross margin to recover to around 25% in the current quarter as utilization picks up. Inventory days rose to 138 from 126 three months ago. Chang acknowledged the level is "higher than comfortable" and attributed part of the buildup to strategic buffer building for data center customer orders.
For the September quarter, AOSL guided revenue in a range of $170 million to $180 million, bracketing estimates near $175 million. Non-GAAP EPS is expected between $0.10 and $0.16. Liang said the company is running its internal plan at the midpoint of both ranges.
Free cash flow turned negative for the quarter at -$13 million after capital spending of $15 million. The spending included tool upgrades at the Oregon fab for GaN production lines. Liang said capex will fall to around $10 million in the September quarter.
During the Q&A session, Stifel analyst Tore Svanberg pressed Chang on whether the company's reliance on the PC and consumer power markets is now a structural drag. Chang offered a measured response. "Our diversification into auto and industrial took five years to build," he said. "Data center will be a meaningful segment. It won't happen in one quarter."
Shares of AOSL traded down about 3% in after-hours action following the release.
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