Bermuda | 77-0553536 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
Page | ||
Part I. | FINANCIAL INFORMATION | |
Item 1. | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | ||
Item 4. | ||
Part II. | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
ALPHA AND OMEGA SEMICONDUCTOR LIMITED | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited, in thousands except par value per share) | |||||||
September 30, 2016 | June 30, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 118,774 | $ | 87,774 | |||
Restricted cash | 225 | 188 | |||||
Accounts receivable, net | 27,059 | 26,594 | |||||
Inventories | 70,018 | 68,848 | |||||
Other current assets | 5,314 | 4,526 | |||||
Total current assets | 221,390 | 187,930 | |||||
Property, plant and equipment, net | 123,048 | 116,084 | |||||
Deferred income tax assets - long term | 5,486 | 12,132 | |||||
Other long-term assets | 10,642 | 2,359 | |||||
Total assets | $ | 360,566 | $ | 318,505 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 38,644 | $ | 42,718 | |||
Accrued liabilities | 25,977 | 22,590 | |||||
Income taxes payable | 2,667 | 2,356 | |||||
Deferred margin | 1,003 | 997 | |||||
Capital leases | 801 | 819 | |||||
Total current liabilities | 69,092 | 69,480 | |||||
Income taxes payable - long term | 1,592 | 1,577 | |||||
Deferred income tax liabilities | 2,972 | 2,973 | |||||
Capital leases - long term | 1,496 | 1,695 | |||||
Other long term liabilities | 680 | 741 | |||||
Total liabilities | 75,832 | 76,466 | |||||
Commitments and contingencies (Note 9) | |||||||
Equity: | |||||||
Preferred shares, par value $0.002 per share: | |||||||
Authorized: 10,000 shares, issued and outstanding: none at September 30, 2016 and June 30, 2016 | — | — | |||||
Common shares, par value $0.002 per share: | |||||||
Authorized: 50,000 shares, issued and outstanding: 28,928 shares and 23,281 shares, respectively at September 30, 2016 and 28,405 shares and 22,754 shares, respectively at June 30, 2016 | 58 | 57 | |||||
Treasury shares at cost, 5,647 shares at September 30, 2016 and 5,651 shares at June 30, 2016 | (50,166 | ) | (50,199 | ) | |||
Additional paid-in capital | 198,615 | 191,444 | |||||
Accumulated other comprehensive income | 860 | 769 | |||||
Retained earnings | 103,368 | 100,071 | |||||
Total Alpha and Omega Semiconductor Limited shareholder's equity | 252,735 | 242,142 | |||||
Noncontrolling interest | 31,999 | (103 | ) | ||||
Total equity | 284,734 | 242,039 | |||||
Total liabilities and equity | $ | 360,566 | $ | 318,505 |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Revenue | $ | 97,362 | $ | 81,439 | |||
Cost of goods sold | 75,418 | 66,378 | |||||
Gross profit | 21,944 | 15,061 | |||||
Operating expenses | |||||||
Research and development | 7,019 | 6,164 | |||||
Selling, general and administrative | 11,183 | 9,497 | |||||
Total operating expenses | 18,202 | 15,661 | |||||
Operating income (loss) | 3,742 | (600 | ) | ||||
Interest income and other income (loss), net | (49 | ) | (151 | ) | |||
Interest expense | (26 | ) | (10 | ) | |||
Net Income (loss) before income taxes | 3,667 | (761 | ) | ||||
Income tax expense | 1,237 | 1,214 | |||||
Net income (loss) including noncontrolling interest | 2,430 | (1,975 | ) | ||||
Net loss attributable to noncontrolling interest | (877 | ) | — | ||||
Net income (loss) attributable to Alpha and Omega Semiconductor Limited | $ | 3,307 | $ | (1,975 | ) | ||
Net income (loss) per common share attributable to Alpha and Omega Semiconductor Limited | |||||||
Basic | $ | 0.14 | $ | (0.09 | ) | ||
Diluted | $ | 0.14 | $ | (0.09 | ) | ||
Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net income (loss) per share | |||||||
Basic | 23,031 | 22,698 | |||||
Diluted | 24,413 | 22,698 |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Net income (loss) including noncontrolling interest | $ | 2,430 | $ | (1,975 | ) | ||
Other comprehensive income, net of tax | |||||||
Foreign currency translation adjustment | 70 | (166 | ) | ||||
Comprehensive income (loss) | 2,500 | (2,141 | ) | ||||
Noncontrolling interest | (898 | ) | — | ||||
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited | $ | 3,398 | $ | (2,141 | ) |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 2,430 | $ | (1,975 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 6,503 | 6,895 | |||||
Share-based compensation expense | 1,316 | 789 | |||||
Deferred income taxes, net | 6,645 | 571 | |||||
Gain on disposal of property and equipment | (377 | ) | — | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (465 | ) | 1,583 | ||||
Inventories | (1,170 | ) | 2,217 | ||||
Other current and long-term assets | (5,690 | ) | 595 | ||||
Accounts payable | (2,804 | ) | (5,193 | ) | |||
Income taxes payable | 327 | 389 | |||||
Accrued and other liabilities | 2,582 | 1,936 | |||||
Net cash provided by operating activities | 9,297 | 7,807 | |||||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (17,374 | ) | (6,002 | ) | |||
Proceeds from sale of property and equipment | 417 | — | |||||
(Increase) decrease in restricted cash | (37 | ) | 172 | ||||
Net cash used in investing activities | (16,994 | ) | (5,830 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from investment by noncontrolling interest | 33,000 | — | |||||
Withholding tax on restricted stock units | (132 | ) | (51 | ) | |||
Proceeds from exercise of stock options | 6,011 | 424 | |||||
Payment for repurchases of common shares | — | (35,240 | ) | ||||
Principal payments on capital leases | (215 | ) | (227 | ) | |||
Net cash provided by (used in) financing activities | 38,664 | (35,094 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 33 | (100 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 31,000 | (33,217 | ) | ||||
Cash and cash equivalents at beginning of period | 87,774 | 106,085 | |||||
Cash and cash equivalents at end of period | $ | 118,774 | $ | 72,868 | |||
Supplemental disclosures of non-cash investing and financing information: | |||||||
Property and equipment purchased but not yet paid | $ | 5,226 | $ | 4,472 | |||
Re-issuance of treasury stock | $ | 10 | $ | — |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in thousands, except per share data) | |||||||
Numerator: | |||||||
Net income (loss) attributable to Alpha and Omega Semiconductor Limited | $ | 3,307 | $ | (1,975 | ) | ||
Denominator: | |||||||
Basic: | |||||||
Weighted average number of common shares used to compute basic net income (loss) per share | 23,031 | 22,698 | |||||
Diluted: | |||||||
Weighted average number of common shares used to compute basic net income (loss) per share | 23,031 | 22,698 | |||||
Effect of potentially dilutive securities: | |||||||
Stock options, RSUs and ESPP shares | 1,382 | — | |||||
Weighted average number of common shares used to compute diluted net income (loss) per share | 24,413 | 22,698 | |||||
Net income (loss) per share attributable to Alpha and Omega Semiconductor Limited: | |||||||
Basic | $ | 0.14 | $ | (0.09 | ) | ||
Diluted | $ | 0.14 | $ | (0.09 | ) |
Three Months Ended September 30, | |||||
2016 | 2015 | ||||
(in thousands) | |||||
Employee stock options and RSUs | 247 | 3,617 | |||
ESPP | — | 188 | |||
Total potential dilutive securities | 247 | 3,805 |
Three Months Ended September 30, | |||||
Percentage of revenue | 2016 | 2015 | |||
Customer A | 24.2 | % | 23.1 | % | |
Customer B | 36.5 | % | 36.0 | % | |
Customer C | 13.9 | % | 14.3 | % |
September 30, 2016 | June 30, 2016 | ||||
Percentage of accounts receivable | |||||
Customer A | 27.6 | % | 21.3 | % | |
Customer B | 6.9 | % | 16.7 | % | |
Customer C | 35.3 | % | 27.2 | % |
September 30, 2016 | June 30, 2016 | ||||||
(in thousands) | |||||||
Accounts receivable | $ | 46,104 | $ | 43,324 | |||
Less: Allowance for price adjustments | (19,015 | ) | (16,700 | ) | |||
Less: Allowance for doubtful accounts | (30 | ) | (30 | ) | |||
Accounts receivable, net | $ | 27,059 | $ | 26,594 |
September 30, 2016 | June 30, 2016 | ||||||
(in thousands) | |||||||
Raw materials | $ | 26,352 | $ | 23,982 | |||
Work in-process | 31,345 | 32,446 | |||||
Finished goods | 12,321 | 12,420 | |||||
$ | 70,018 | $ | 68,848 |
September 30, 2016 | June 30, 2016 | ||||||
(in thousands) | |||||||
Land | $ | 4,877 | $ | 4,877 | |||
Building | 4,325 | 4,323 | |||||
Manufacturing machinery and equipment | 200,778 | 193,164 | |||||
Equipment and tooling | 13,118 | 12,289 | |||||
Computer equipment and software | 23,791 | 23,448 | |||||
Office furniture and equipment | 1,943 | 1,822 | |||||
Leasehold improvements | 28,825 | 28,660 | |||||
277,657 | 268,583 | ||||||
Less: Accumulated depreciation | (175,012 | ) | (168,687 | ) | |||
102,645 | 99,896 | ||||||
Equipment and construction in progress | 20,403 | 16,188 | |||||
Property, plant and equipment, net | $ | 123,048 | $ | 116,084 |
September 30, 2016 | June 30, 2016 | ||||||
(in thousands) | |||||||
Prepayments for property and equipment | $ | 3,404 | $ | 506 | |||
Prepayment for others | 204 | 42 | |||||
Prepaid income tax | 5,308 | — | |||||
Investment in a privately held company | 100 | 100 | |||||
Office leases deposits | 1,342 | 1,427 | |||||
Intangible assets | 15 | 15 | |||||
Goodwill | 269 | 269 | |||||
$ | 10,642 | $ | 2,359 |
September 30, 2016 | June 30, 2016 | ||||||
(in thousands) | |||||||
Accrued compensation and benefit | $ | 10,368 | $ | 10,211 | |||
Warranty accrual | 2,938 | 1,495 | |||||
Stock rotation accrual | 2,015 | 1,988 | |||||
Accrued professional fees | 1,936 | 1,867 | |||||
Accrued inventory | 1,272 | 918 | |||||
Accrued facilities related expenses | 1,382 | 1,544 | |||||
Other accrued expenses | 6,066 | 4,567 | |||||
$ | 25,977 | $ | 22,590 |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Beginning balance | $ | 1,495 | $ | 1,957 | |||
Additions | 1,491 | 305 | |||||
Utilization | (48 | ) | (59 | ) | |||
Ending balance | $ | 2,938 | $ | 2,203 |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Beginning balance | $ | 1,988 | $ | 1,894 | |||
Additions | 1,626 | 1,510 | |||||
Utilization | (1,599 | ) | (1,494 | ) | |||
Ending balance | $ | 2,015 | $ | 1,910 |
September 30, 2016 | June 30, 2016 | ||||||
(in thousands) | |||||||
Deferred rent | $ | 680 | $ | 741 |
Total AOS Stockholders' Equity | Noncontrolling Interest | Total Equity | ||||||||||
Balance, June 30, 2016 | $ | 242,142 | $ | (103 | ) | $ | 242,039 | |||||
Contributions from noncontrolling interest | — | 33,000 | 33,000 | |||||||||
Exercise of common stock options and release of RSUs | 5,988 | — | 5,988 | |||||||||
Reissuance of treasury stock upon exercise of common stock options and release of RSUs | 23 | — | 23 | |||||||||
Withholding tax on restricted stock units | (132 | ) | — | (132 | ) | |||||||
Stock-based compensation expense | 1,316 | — | 1,316 | |||||||||
Net income (loss) | 3,307 | (877 | ) | 2,430 | ||||||||
Cumulative translation adjustment | 91 | (21 | ) | 70 | ||||||||
Balance, September 30, 2016 | $ | 252,735 | $ | 31,999 | $ | 284,734 |
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | |||||||||||
Number of | Exercise Price | Contractual | Aggregate | |||||||||
Shares | Per Share | Term (in years) | Intrinsic Value | |||||||||
Outstanding at June 30, 2016 | 1,859,260 | $ | 11.37 | 4.71 | $ | 5,959,720 | ||||||
Granted | — | $ | — | |||||||||
Exercised | (503,236 | ) | $ | 11.95 | $ | 3,805,159 | ||||||
Canceled or forfeited | (75,000 | ) | $ | 13.43 | ||||||||
Outstanding at September 30, 2016 | 1,281,024 | $ | 11.03 | 5.00 | $ | 13,693,937 | ||||||
Options vested and expected to vest | 1,266,146 | $ | 11.07 | 4.97 | $ | 13,483,674 | ||||||
Exercisable at September 30, 2016 | 1,059,449 | $ | 11.75 | 4.49 | $ | 10,565,183 |
Number of Restricted Stock Units | Weighted Average Grant Date Fair Value Per Share | Weighted Average Remaining Recognition Period (Years) | Aggregate Intrinsic Value | |||||||||
Nonvested at June 30, 2016 | 933,063 | $ | 9.18 | 1.73 | $ | 12,997,568 | ||||||
Granted | 54,376 | $ | 19.33 | |||||||||
Vested | (30,973 | ) | $ | 9.49 | ||||||||
Forfeited | (12,575 | ) | $ | 11.9 | ||||||||
Nonvested at September 30, 2016 | 943,891 | $ | 9.72 | 1.57 | $ | 20,501,313 | ||||||
RSUs vested and expected to vest | 814,711 | 1.46 | $ | 17,695,533 |
Three Months Ended September 30, | |
2016 | |
Volatility rate | 34.76% |
Risk-free interest rate | 0.4% - 0.8% |
Expected term | 1.3 years |
Dividend yield | 0% |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Cost of goods sold | $ | 195 | $ | 131 | |||
Research and development | 360 | 193 | |||||
Selling, general and administrative | 761 | 465 | |||||
$ | 1,316 | $ | 789 |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Hong Kong | $ | 82,835 | $ | 70,453 | |||
China | 12,442 | 9,016 | |||||
South Korea | 366 | 658 | |||||
United States | 894 | 717 | |||||
Other Countries | 825 | 595 | |||||
$ | 97,362 | $ | 81,439 |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Power discrete | $ | 71,428 | $ | 59,912 | |||
Power IC | 22,998 | 17,514 | |||||
Packaging and testing services | 2,936 | 4,013 | |||||
$ | 97,362 | $ | 81,439 |
September 30, 2016 | June 30, 2016 | ||||||
(in thousands) | |||||||
China | $ | 69,567 | $ | 64,272 | |||
United States | 52,859 | 51,214 | |||||
Other Countries | 622 | 598 | |||||
$ | 123,048 | $ | 116,084 |
Three Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(in thousands) | (% of revenue) | ||||||||||||
Revenue | $ | 97,362 | $ | 81,439 | 100.0 | % | 100.0 | % | |||||
Cost of goods sold | 75,418 | 66,378 | 77.5 | % | 81.5 | % | |||||||
Gross profit | 21,944 | 15,061 | 22.5 | % | 18.5 | % | |||||||
Operating expenses | |||||||||||||
Research and development | 7,019 | 6,164 | 7.2 | % | 7.6 | % | |||||||
Selling, general and administrative | 11,183 | 9,497 | 11.5 | % | 11.7 | % | |||||||
Total operating expenses | 18,202 | 15,661 | 18.7 | % | 19.3 | % | |||||||
Operating income (loss) | 3,742 | (600 | ) | 3.8 | % | (0.8 | )% | ||||||
Interest income and other income (loss), net | (49 | ) | (151 | ) | (0.1 | )% | (0.2 | )% | |||||
Interest expense | (26 | ) | (10 | ) | — | % | — | % | |||||
Net Income (loss) before income taxes | 3,667 | (761 | ) | 3.7 | % | (1.0 | )% | ||||||
Income tax expense | 1,237 | 1,214 | 1.3 | % | 1.5 | % | |||||||
Net income (loss) including noncontrolling interest | 2,430 | (1,975 | ) | 2.4 | % | (2.5 | )% | ||||||
Net loss attributable to noncontrolling interest | (877 | ) | — | (0.9 | )% | — | % | ||||||
Net income (loss) attributable to Alpha and Omega Semiconductor Limited | $ | 3,307 | $ | (1,975 | ) | 3.3 | % | (2.5 | )% |
Three Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(in thousands) | (% of revenue) | ||||||||||||
Cost of goods sold | $ | 195 | $ | 131 | 0.2 | % | 0.2 | % | |||||
Research and development | 360 | 193 | 0.4 | % | 0.2 | % | |||||||
Selling, general and administrative | 761 | 465 | 0.8 | % | 0.6 | % | |||||||
Total | $ | 1,316 | $ | 789 | 1.4 | % | 1.0 | % |
Three Months Ended September 30, | ||||||||||||||
2016 | 2015 | Change | ||||||||||||
(in thousands) | (in thousands) | (in percentage) | ||||||||||||
Power discrete | $ | 71,428 | $ | 59,912 | $ | 11,516 | 19.2 | % | ||||||
Power IC | 22,998 | 17,514 | 5,484 | 31.3 | % | |||||||||
Packaging and testing services | 2,936 | 4,013 | (1,077 | ) | (26.8 | )% | ||||||||
$ | 97,362 | $ | 81,439 | $ | 15,923 | 19.6 | % |
Three Months Ended September 30, | ||||||||||||||
2016 | 2015 | Change | ||||||||||||
(in thousands) | (in thousands) | (in percentage) | ||||||||||||
Cost of goods sold | $ | 75,418 | $ | 66,378 | $ | 9,040 | 13.6 | % | ||||||
Percentage of revenue | 77.5 | % | 81.5 | % | ||||||||||
Gross profit | $ | 21,944 | $ | 15,061 | $ | 6,883 | 45.7 | % | ||||||
Percentage of revenue | 22.5 | % | 18.5 | % |
Three Months Ended September 30, | ||||||||||||||
2016 | 2015 | Change | ||||||||||||
(in thousands) | (in thousands) | (in percentage) | ||||||||||||
Research and development | $ | 7,019 | $ | 6,164 | $ | 855 | 13.9 | % |
Three Months Ended September 30, | ||||||||||||||
2016 | 2015 | Change | ||||||||||||
(in thousands) | (in thousands) | (in percentage) | ||||||||||||
Selling, general and administrative | $ | 11,183 | $ | 9,497 | $ | 1,686 | 17.8 | % |
Three Months Ended September 30, | ||||||||||||||
2016 | 2015 | Change | ||||||||||||
(in thousands) | (in thousands) | (in percentage) | ||||||||||||
Interest income and other income (loss), net | $ | (49 | ) | $ | (151 | ) | $ | 102 | (67.5 | )% |
Three Months Ended September 30, | ||||||||||||||
2016 | 2015 | Change | ||||||||||||
(in thousands) | (in thousands) | (in percentage) | ||||||||||||
Income tax expense | $ | 1,237 | $ | 1,214 | $ | 23 | 1.9 | % |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Net cash provided by operating activities | $ | 9,297 | $ | 7,807 | |||
Net cash used in investing activities | (16,994 | ) | (5,830 | ) | |||
Net cash provided by (used in) financing activities | 38,664 | (35,094 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 33 | (100 | ) | ||||
Net increase (decrease) in cash and cash equivalents | $ | 31,000 | $ | (33,217 | ) | ||
31.1 | Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS | XBRL Instance |
101.SCH | XBRL Taxonomy Extension Schema |
101.CAL | XBRL Taxonomy Extension Calculation |
101.DEF | XBRL Taxonomy Extension Definition |
101.LAB | XBRL Taxonomy Extension Labels |
101.PRE | XBRL Taxonomy Extension Presentation |
ALPHA AND OMEGA SEMICONDUCTOR LIMITED | |
By: | /s/ YIFAN LIANG |
Yifan Liang | |
Chief Financial Officer and Corporate Secretary | |
(Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Alpha and Omega Semiconductor Limited (the "registrant"); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Mike F. Chang |
Mike F. Chang Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Alpha and Omega Semiconductor Limited (the "registrant"); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Yifan Liang |
Yifan Liang Chief Financial Officer and Corporate Secretary |
a. | the Quarterly Report of the Company on Form 10-Q for the fiscal quarter ended September 30, 2016 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
b. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Mike F. Chang |
Mike F. Chang Chief Executive Officer |
a. | the Quarterly Report of the Company on Form 10-Q for the fiscal quarter ended September 30, 2016 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
b. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Yifan Liang |
Yifan Liang Chief Financial Officer and Corporate Secretary |
Document and Entity Information - shares |
3 Months Ended | |
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Sep. 30, 2016 |
Oct. 31, 2016 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | ALPHA & OMEGA SEMICONDUCTOR Ltd | |
Entity Central Index Key | 0001387467 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 23,295,656 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2016 |
Jun. 30, 2016 |
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Common shares, par value (in dollars per share) | $ 0.002 | $ 0.002 |
Common shares, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 28,928,000 | 28,405,000 |
Common stock, shares outstanding (in shares) | 23,281,000 | 22,754,000 |
Preferred stock, par value (in dollars per share) | $ 0.002 | $ 0.002 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury shares (in shares) | 5,647,000 | 5,651,000 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
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Sep. 30, 2016 |
Sep. 30, 2015 |
|
Net income (loss) including noncontrolling interest | $ 2,430 | $ (1,975) |
Foreign currency translation adjustment | 70 | (166) |
Comprehensive income (loss) | 2,500 | (2,141) |
Noncontrolling interest | (898) | 0 |
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited | $ 3,398 | $ (2,141) |
The Company and Significant Accounting Policies |
3 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Significant Accounting Policies | The Company and Significant Accounting Policies The Company Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company,” "AOS," "we" or "us") design, develop and supply a broad range of power semiconductors. The Company's portfolio of products targets high-volume applications, including personal computers, flat panel TVs, LED lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. The Company conducts its operations primarily in the United States of America (“USA”), Hong Kong, China, Taiwan, Korea and Japan. Basis of Preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the three months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2017. The condensed consolidated balance sheet at June 30, 2016 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. Reclassification The Company has reclassified certain amounts previously reported in its financial statements to conform to the current presentation. These reclassifications did not have a material impact on our consolidated financial statements. Joint Venture In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China (the "Chongqing Funds") to form a joint venture for a new state-of-the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing (the "Joint Venture"). The initial capitalization of the Joint Venture under the agreement is $330.0 million, which includes cash contribution from the Chongqing Funds and contributions of cash, equipment and intangible assets from the Company. The Company owns 51% and the Chongqing Funds owns 49% of the equity interest of the Joint Venture. The Joint Venture is accounted under the provisions of the consolidation guidance since the Company has controlling financial interest. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's condensed consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets. Fair Value of Financial Instruments The fair value of cash equivalents are based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. Impairment of Long-Lived Assets Long-lived assets or asset groups are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. Factors that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. Where such factors indicate potential impairment, the recoverability of an asset or asset group is assessed by determining if the carrying value of the asset or asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life. The impairment loss is measured based on the difference between the carrying amount and the estimated fair value. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Total comprehensive income (loss) is presented in the condensed consolidated statements of comprehensive income (loss). Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-16, "Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"). ASU 2016-16 requires entities to recognize income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amended guidance is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods wihin annual periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-16 will have on its consolidated financial statements. In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. Upon adoption, entities must apply the guidance retrospectively to all periods presented. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on its consolidated financial statements. In May 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-12, "Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients." ASU 2016-12 provides additional guidance established by the FASB-IASB Joint Transition Resource Group for Revenue Recognition regarding the implementation of certain aspects of the new revenue recognition guidance. More specifically, the amendment provides additional guidance regarding assessing the collectibility criterion, the presentation of sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications or completed contracts at transition of the new revenue recognition guidance and technical corrections. The effective date is consistent with the effective date of ASU 2014-09. The Company is currently evaluating the impact the adoption of ASU 2016-12 will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ("ASU 2016-10"). ASU 2016-10 clarify two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The update is effective for annual periods beginning after December 15, 2017 including interim reporting periods therein. The Company is currently evaluating the impact the adoption of ASU 2016-10 will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued No. 2016-02, Leases ("ASU 2016-02"). This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In July 2015, the FASB issued No. 2015-11, Inventory - Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 is additional guidance regarding the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In April 2015, the FASB issued ASU No. 2015-03, Interest -Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts and the accounting for debt issue costs under IFRS. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. ASU 2015-03 is effective for the annual period ending after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In February 2015, the FASB issued ASU No. 2015-2, “Consolidation (Topic 820): Amendments to the Consolidation Analysis.” ASU 2015-2 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In August 2014, the FASB issued amended standards No. 2014-15, Presentation of Financial Statements - Going Concern ("ASU 2014-15"), to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures requirement. The amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation for each annual and interim reporting period, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. In August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date of ASU 2014-09 to annual and interim periods beginning after December 15, 2017 and permits entities to early adopt the standard of ASU 2014-09 for annual and interim reporting periods beginning after December 15, 2016. Companies are permitted to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the timing of its adoption and the impact of adoption on its consolidated financial statements. |
Net Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited The following table presents the calculation of basic and diluted net income (loss) per share attributable to common shareholders:
The following potential dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:
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Concentration of Credit Risk and Significant Customers |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers. Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, when available. Summarized below are individual customers whose revenue or accounts receivable balances were more than 10% of the respective total consolidated amounts:
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Balance Sheet Components |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components | Balance Sheet Components Accounts receivable:
Inventories:
Property, plant and equipment, net:
Other long-term assets:
Accrued liabilities:
The activities in the warranty accrual, included in accrued liabilities, are as follows:
The activities in the stock rotation accrual, included in accrued liabilities, are as follows:
Other Long-term liabilities:
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Joint Venture |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Joint Venture | 5. Joint Venture On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture, (the “JV Company”), for the purpose of constructing a power semiconductor packaging, testing and 12-inch wafer fabrication facility in the Liangjiang New Area of Chongqing, China (the “JV Transaction”). The total initial capitalization of the JV Company is $330.0 million (the “Initial Capitalization”), which includes cash contribution from the Chongqing Funds and contributions of cash, equipments and intangible assets from the Company. The Initial Capitalization will be completed in stages commencing on the incorporation of the JV Company. The Company owns 51%, and the Chongqing Funds owns 49%, of the equity interest in the JV Company. If both parties agree that the termination of the JV Company is the best interest of each party or the JV Company is bankrupt or insolvent where either party may terminate early, after paying the debts of the JV Company, the remaining assets of the JV Company shall be paid to the Chongqing Funds to cover the principal of its total paid-in contributions plus interest at 10% simple annual rate prior to distributing the balance of the JV Company's assets to the Company. The Company expects the JV Company to commence its initial production in the first half of fiscal 2018. The Company began consolidating the financial statements of the JV Company in the quarter ended June 30, 2016. During the quarter ended September 30, 2016, the Chongqing Funds contributed $33.0 million of initial capital in cash and the Company fulfilled its obligation to contribute certain packaging equipments as required by the JV Agreement by transferring the legal titles of such equipment to the JV Company. Within one year from June 30, 2016, the Company expects to contribute certain intangible assets and cash of $10.0 million pursuant to the terms of the JV Agreement. The changes in total stockholders' equity and noncontrolling interest were as follows (in thousands):
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Shareholders' Equity and Share-based Compensation |
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Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity and Share-based Compensation | Shareholders' Equity and Share-based Compensation Share Repurchase In April 2015, the Board of Directors approved an increase in the remaining available amount under the Company’s then effective share repurchase program from approximately $17.8 million to $50.0 million. The repurchases may be made from the open market pursuant to a pre-established Rule 10b5-1 trading plan (as amended, the "Repurchase Trading Plan") or through privately negotiated transactions. In July 2015, the Company completed a Dutch tender offer (the "Tender Offer") in which it purchased 3,296,703 shares of its common shares, at a purchase price of $9.10 per share, for an aggregate purchase price of $30.0 million, excluding fees and expenses relating to the Tender Offer. The Tender Offer was part of the $50.0 million share repurchase program approved by the Board on April 15, 2015. Shares repurchased are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. During the three months ended September 30, 2016, the Company did not repurchased any shares pursuant to the repurchase program. Since the inception of the program in 2010, the Company repurchased an aggregate of 5,723,093 shares from the open market for a total cost of $50.8 million, at an average price of $8.87 per share, excluding fees and related expenses. No repurchased shares have been retired. Of the 5,723,093 repurchased shares, 75,678 shares with a weighted average repurchase price of $12.14 per share, were reissued at an average price of $4.37 per share pursuant to option exercises and vested restricted share units. As of September 30, 2016, $6.4 million remained available under the share repurchase program. Stock Options The Company did not grant any stock options during the three months ended September 30, 2016. Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options. The following table summarizes the Company's stock option activities for the three months ended September 30, 2016:
Restricted Stock Units ("RSU") The following table summarizes the Company's RSU activities for the three months ended September 30, 2016:
The fair value of RSU is estimated based on the market price of the Company's share on the date of grant. Employee Share Purchase Plan ("ESPP") The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:
Share-based Compensation Expense The total share-based compensation expense related to stock options, RSUs and ESPP described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows:
As of September 30, 2016, total unrecognized compensation cost under the Company's equity plans was $5.4 million, which is expected to be recognized over a weighted-average period of 1.5 years. |
Income Taxes |
3 Months Ended |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized income tax expense of approximately $1.2 million and $1.2 million for the three months ended September 30, 2016 and 2015, respectively. The estimated effective tax rate for the three months ended September 30, 2016 was 33.7% compared to (159.5)% for the three months ended September 30, 2015. The changes in the effective tax rate and tax expense between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current quarter and the same period of last year. During the quarter ended September 30, 2016, the Company fulfilled its obligations to contribute certain packaging equipment as required by the JV Agreement by transferring the legal titles of such equipment to the JV Company. The Company recorded $6.6 million on both deferred tax assets and prepaid tax asset, which will be amortized to tax expense over the useful life of the assets. As of September 30, 2016, the prepaid tax asset was amortized down to $6.4 million, of which $1.1 million and $5.3 million were included in prepaid and other current assets and other long-term assets on the Company’s balance sheet, respectively. The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2016 remain open to examination by U.S. federal and state tax authorities. The tax years 2009 to 2016 remain open to examination by foreign tax authorities. The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of September 30, 2016, the gross amount of unrecognized tax benefits was approximately $6.8 million, of which $4.4 million, if recognized, would reduce the effective income tax rate in future periods. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of share-based compensation expense in an intercompany cost-sharing arrangement. A final decision has yet to be issued by the Tax Court due to other outstanding issues related to the case. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include share-based compensation from its regulations. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has not recorded any benefit as of September 30, 2016. The Company will continue to monitor ongoing developments and potential impacts to its financial statements. |
Segment and Geographic Information |
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Segment and Geographic Information | Segment and Geographic Information The Company is organized as, and operates in, one operating segment: the design, development and supply of power semiconductor products for computing, consumer electronics, communication and industrial applications. The chief operating decision-maker is the Chief Executive Officer. The financial information presented to the Company's Chief Executive Officer is on a consolidated basis, accompanied by information about revenue by customer and geographic region, for purposes of evaluating financial performance and allocating resources. The Company has one business segment, and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company's distributors sell their products to end customers which may have a global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets. The revenue by geographical location in the following tables is based on the country or region to which the products were shipped to:
The following is a summary of revenue by product type:
Long-lived assets, net consisting of property, plant and equipment, by geographical area are as follows:
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Commitments and Contingencies |
3 Months Ended |
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Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of September 30, 2016 and June 30, 2016, the Company had approximately $38.6 million and $39.6 million, respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts and packaging and testing services, and approximately $6.2 million and $6.6 million, respectively, of capital commitments for the purchase of property and equipment. Contingencies and Indemnities The Company is currently not a party to any pending material legal proceedings. The Company has in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities. The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, the Company could incur significant costs in the defense of such claims and suffer adverse effects on its operations. The Company is a party to a variety of agreements that it has contracted with various third parties. Pursuant to these agreements, the Company may be obligated to indemnify another party to such an agreement with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold, certain intellectual property rights, specified environmental matters and certain income taxes. In these circumstances, payment by the Company is customarily conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claim. Further, the Company's obligations under these agreements may be limited in time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. The Company has not historically paid or recorded any material indemnifications and no accrual has been made at September 30, 2016 and June 30, 2016. The Company has agreed to indemnify its directors and certain employees as permitted by law and pursuant to its bye-laws, and has entered into indemnification agreements with its directors and executive officers. The Company has not recorded a liability associated with these indemnification arrangements, as it historically has not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that the Company maintains. However, such insurance may not cover any, or may cover only a portion of, the amounts the Company may be required to pay. In addition, the Company may not be able to maintain such insurance coverage in the future. Joint Venture In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of-the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing (the "Joint Venture"). The initial capitalization of the Joint Venture under the agreement is $330.0 million, which includes cash contribution from the Chongqing Funds and contributions of cash, equipments and intangible assets from the Company. The Company owns 51% and the Chongqing Funds owns 49% of the equity interest of the Joint Venture. The Joint Venture is accounted under the provisions of the consolidation guidance since the Company has controlling financial interest. The Joint Venture is expected to commence its initial packaging production in the first half of fiscal 2018. Within one year from June 30, 2016, the Company is expected to contribute cash of $10.0 million and certain intangible assets. Over the long term, the Joint Venture plans to construct a 12-inch wafer fabrication facility for the production of power semiconductors. |
The Company and Significant Accounting Policies (Policies) |
3 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the three months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2017. The condensed consolidated balance sheet at June 30, 2016 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. |
Reclassification | Reclassification The Company has reclassified certain amounts previously reported in its financial statements to conform to the current presentation. These reclassifications did not have a material impact on our consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's condensed consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of cash equivalents are based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities. |
Impairment of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets Long-lived assets or asset groups are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. Factors that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. Where such factors indicate potential impairment, the recoverability of an asset or asset group is assessed by determining if the carrying value of the asset or asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life. The impairment loss is measured based on the difference between the carrying amount and the estimated fair value. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Total comprehensive income (loss) is presented in the condensed consolidated statements of comprehensive income (loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-16, "Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory ("ASU 2016-16"). ASU 2016-16 requires entities to recognize income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amended guidance is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods wihin annual periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-16 will have on its consolidated financial statements. In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. Upon adoption, entities must apply the guidance retrospectively to all periods presented. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on its consolidated financial statements. In May 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-12, "Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients." ASU 2016-12 provides additional guidance established by the FASB-IASB Joint Transition Resource Group for Revenue Recognition regarding the implementation of certain aspects of the new revenue recognition guidance. More specifically, the amendment provides additional guidance regarding assessing the collectibility criterion, the presentation of sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications or completed contracts at transition of the new revenue recognition guidance and technical corrections. The effective date is consistent with the effective date of ASU 2014-09. The Company is currently evaluating the impact the adoption of ASU 2016-12 will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ("ASU 2016-10"). ASU 2016-10 clarify two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The update is effective for annual periods beginning after December 15, 2017 including interim reporting periods therein. The Company is currently evaluating the impact the adoption of ASU 2016-10 will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued No. 2016-02, Leases ("ASU 2016-02"). This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In July 2015, the FASB issued No. 2015-11, Inventory - Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 is additional guidance regarding the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In April 2015, the FASB issued ASU No. 2015-03, Interest -Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts and the accounting for debt issue costs under IFRS. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. ASU 2015-03 is effective for the annual period ending after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In February 2015, the FASB issued ASU No. 2015-2, “Consolidation (Topic 820): Amendments to the Consolidation Analysis.” ASU 2015-2 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-2 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In August 2014, the FASB issued amended standards No. 2014-15, Presentation of Financial Statements - Going Concern ("ASU 2014-15"), to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures requirement. The amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation for each annual and interim reporting period, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. In August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date of ASU 2014-09 to annual and interim periods beginning after December 15, 2017 and permits entities to early adopt the standard of ASU 2014-09 for annual and interim reporting periods beginning after December 15, 2016. Companies are permitted to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the timing of its adoption and the impact of adoption on its consolidated financial statements. |
Concentration of Credit Risk | The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers. Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, when available. |
Net Income (Loss) Per Share (Tables) |
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Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net income (loss) per share attributable to common shareholders:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:
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Concentration of Credit Risk and Significant Customers (Tables) |
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Schedules of Concentration of Risk, by Risk Factor | Summarized below are individual customers whose revenue or accounts receivable balances were more than 10% of the respective total consolidated amounts:
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Balance Sheet Components (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable:
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Schedule of Inventory, Current | Inventories:
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Property, Plant and Equipment | Property, plant and equipment, net:
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Schedule of Other Assets, Noncurrent | Other long-term assets:
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Schedule of Accrued Liabilities | Accrued liabilities:
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Schedule of Product Warranty Liability | The activities in the warranty accrual, included in accrued liabilities, are as follows:
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Stock Rotation Accrual | The activities in the stock rotation accrual, included in accrued liabilities, are as follows:
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Schedule of Other Noncurrent Liabilities | Other Long-term liabilities:
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Joint Venture (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | The changes in total stockholders' equity and noncontrolling interest were as follows (in thousands):
|
Shareholders' Equity and Share-based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activities | Stock Options The Company did not grant any stock options during the three months ended September 30, 2016. Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options. The following table summarizes the Company's stock option activities for the three months ended September 30, 2016:
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Restricted Stock Units Activity | Restricted Stock Units ("RSU") The following table summarizes the Company's RSU activities for the three months ended September 30, 2016:
The fair value of RSU is estimated based on the market price of the Company's share on the date of grant. |
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Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | Employee Share Purchase Plan ("ESPP") The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:
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Share-based Compensation, Allocation of Recognized Period Costs | Share-based Compensation Expense The total share-based compensation expense related to stock options, RSUs and ESPP described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows:
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Segment and Geographic Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Long-lived assets, net consisting of property, plant and equipment, by geographical area are as follows:
The revenue by geographical location in the following tables is based on the country or region to which the products were shipped to:
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Revenue from External Customers by Products and Services | The following is a summary of revenue by product type:
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The Company and Significant Accounting Policies Joint Venture (Details) - Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') [Member] - USD ($) $ in Millions |
1 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 29, 2016 |
|
Corporate Joint Venture [Member] | ||
Initial capitalization of joint venture | $ 330.0 | |
Chongqing Funds [Member] | ||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 49.00% | |
Parent Company [Member] | ||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 51.00% |
Net Income (Loss) Per Share - Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Numerator: | ||
Net income (loss) attributable to Alpha and Omega Semiconductor Limited | $ 3,307 | $ (1,975) |
Basic: | ||
Weighted average number of common shares used to compute basic net income (loss) per share | 23,031 | 22,698 |
Effect of potentially dilutive securities: | ||
Stock options, RSUs and ESPP shares | 1,382 | 0 |
Weighted average number of common shares used to compute diluted net income (loss) per share | 24,413 | 22,698 |
Net income (loss) per share attributable to Alpha and Omega Semiconductor Limited: | ||
Basic (in dollars per share) | $ 0.14 | $ (0.09) |
Diluted (in dollars per share) | $ 0.14 | $ (0.09) |
Net Income (Loss) Per Share - Potential Dilutive Shares (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities (in shares) | 247 | 3,805 |
Employee stock options and RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities (in shares) | 247 | 3,617 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities (in shares) | 0 | 188 |
Balance Sheet Components - Accounts receivable (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 46,104 | $ 43,324 |
Less: Allowance for price adjustments | (19,015) | (16,700) |
Less: Allowance for doubtful accounts | (30) | (30) |
Accounts receivable, net | $ 27,059 | $ 26,594 |
Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 26,352 | $ 23,982 |
Work in-process | 31,345 | 32,446 |
Finished goods | 12,321 | 12,420 |
Inventory, net | $ 70,018 | $ 68,848 |
Balance Sheet Components - Other long term assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Prepayments for property and equipment | $ 3,404 | $ 506 |
Prepayment for others | 204 | 42 |
Prepaid income tax | 5,308 | 0 |
Investment in a privately held company | 100 | 100 |
Office leases deposits | 1,342 | 1,427 |
Intangible assets | 15 | 15 |
Goodwill | 269 | 269 |
Other long-term assets | $ 10,642 | $ 2,359 |
Balance Sheet Components - Accrued liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2015 |
---|---|---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||||
Accrued compensation and benefit | $ 10,368 | $ 10,211 | ||
Warranty accrual | 2,938 | 1,495 | $ 2,203 | $ 1,957 |
Stock rotation accrual | 2,015 | 1,988 | $ 1,910 | $ 1,894 |
Accrued professional fees | 1,936 | 1,867 | ||
Accrued inventory | 1,272 | 918 | ||
Accrued facilities related expenses | 1,382 | 1,544 | ||
Other accrued expenses | 6,066 | 4,567 | ||
Accrued liabilities | $ 25,977 | $ 22,590 |
Balance Sheet Components - Product Warranty Accrual (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Beginning balance | $ 1,495 | $ 1,957 |
Additions | 1,491 | 305 |
Utilization | (48) | (59) |
Ending balance | $ 2,938 | $ 2,203 |
Balance Sheet Components - Stock Rotation Accrual (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Stock Rotation Accrual Increae (Decrease) [Roll Forward] | ||
Beginning balance | $ 1,988 | $ 1,894 |
Additions | 1,626 | 1,510 |
Utilization | (1,599) | (1,494) |
Ending balance | $ 2,015 | $ 1,910 |
Balance Sheet Components - Other Long Term Liability (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Deferred rent | $ 680 | $ 741 |
Other long term liabilities | $ 680 | $ 741 |
Joint Venture - Narrative (Details) - Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') [Member] - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Mar. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2017 |
Mar. 29, 2016 |
|
Interest rate to concontrolling interest if joint venture is early terminated and liquidated | 10.00% | |||
Corporate Joint Venture [Member] | ||||
Initial capitalization of joint venture | $ 330.0 | |||
Parent Company [Member] | ||||
Percent ownership in joint venture | 51.00% | |||
Chongqing Funds [Member] | ||||
Percent ownership in joint venture | 49.00% | |||
Payments to acquire interest in joint venture | $ 33.0 | |||
Scenario, Forecast [Member] | ||||
Consideration transferred to acquire interest in joint venture | $ 10.0 |
Shareholders' Equity and Share-based Compensation - Stock Options Outstanding and Exercisable (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Jun. 30, 2016 |
|
Share-based Compensation [Abstract] | ||
Options, Number Outstanding (in shares) | 1,281,024 | 1,859,260 |
Options, Weighted-Average Remaining Contractual Life (in years) | 5 years | 4 years 8 months 16 days |
Options, Weighted-Average Exercise Price (in dollars per share) | $ 11.03 | $ 11.37 |
Options, Number Exercisable (in shares) | 1,059,449 | |
Options, Weighted-Average Exercise Price (in dollars per share) | $ 11.75 | |
Options vested and expected to vest, Number Outstanding (in shares) | 1,266,146 | |
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 4 years 11 months 19 days | |
Options vested and expected to vest, Weighted Average Exercise Price (in dollars per share) | $ 11.07 |
Shareholders' Equity and Share-based Compensation - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | $ 1,316 | $ 789 |
Unrecognized compensation expense | $ 5,400 | |
Recognition period of share-based compensation expense (in years) | 1 year 5 months 16 days | |
Cost of goods sold | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | $ 195 | 131 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | 360 | 193 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | $ 761 | $ 465 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2016 |
|
Related Party Transaction [Line Items] | |||
Income tax expense | $ 1,237 | $ 1,214 | |
Estimated effective income tax rate | 33.70% | (159.50%) | |
Increase in prepaid taxes | $ 6,600 | ||
Prepaid taxes, current and noncurrent | 6,400 | ||
Prepaid taxes, current | 1,100 | ||
Prepaid taxes, noncurrent | 5,308 | $ 0 | |
Unrecognized tax benefits | 6,800 | ||
Unrecognized tax benefit that would impact effective tax rate | $ 4,400 |
Segment and Geographic Information - Long-lived Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Jun. 30, 2016 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 123,048 | $ 116,084 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 69,567 | 64,272 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 52,859 | 51,214 |
Other Countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 622 | $ 598 |
Segment and Geographic Information - Narratives (Details) |
3 Months Ended |
---|---|
Sep. 30, 2016
Segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Jun. 30, 2016 |
---|---|---|
Raw materials, wafers, and packaging and testing services puchase commitments | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 38.6 | $ 39.6 |
Property and equipment purchase commitments | ||
Purchase Commitment, Excluding Long-term Committment [Line Items] | ||
Purchase commitment, amount | $ 6.2 | $ 6.6 |
Commitments and Contingencies - Guarantees (Details) - USD ($) |
Sep. 30, 2016 |
Jun. 30, 2016 |
---|---|---|
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Indemnifications accrual | $ 0 | $ 0 |
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