Alpha and Omega Semiconductor Limited (NASDAQ:AOSL)
Q1 2018 Earnings Conference Call
November 02, 2017 5:00 PM ET
Executives
So-Yeon Jeong – Investor Relations
Yifan Liang – Chief Financial Officer
Mike Chang – Chief Executive Officer
Analysts
Jeremy Kwan – Stifel Nicolaus
Ed Roesch – Sidoti & Company
Tom Sepenzis – Northland
Plamen Sirakov – B. Riley
Operator
Good day, ladies and gentlemen, and welcome to the Alpha and Omega Semiconductor conference call, Fiscal Q1 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this conference will be recorded.
I’d now like to introduce your host for today’s conference, Ms. So-Yeon Jeong, of Investor Relations. Ma’am, you may begin your conference.
So-Yeon Jeong
Thank you. Good afternoon everyone, and welcome to the Alpha and Omega Semiconductor’s conference call for fiscal 2018 first quarter results.
This is So-Yeon Jeong, Investor Relations representative for the company. With me today are Dr. Mike Chang, our CEO, and Yifan Liang, our CFO. This call is being recorded and broadcasted live over the Web, and can be accessed for seven days following the call via the link in the Investor Relations section of our website at www.aosmd.com.
The earnings release was distributed by GlobeNewswire today, November 2, 2017, after the market closed. The release is also posted on the company’s website.
Our earnings release and this presentation include certain non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures that we provide. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release.
We would like to remind you that during the course of the conference call we’ll make forward-looking statements, including discussions of business outlook and financial projections. These forward-looking statements are based on management’s current expectations and involve risks and uncertainties that could cause our actual results to differ materially from such expectations. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligations to update information provided in today’s call.
Now I’ll turn the discussion over to Yifan, our CFO, to provide an overview of the first fiscal quarter financial results. Yifan?
Yifan Liang
Thank you, So-Yeon. Good afternoon and thank you for joining us. To begin, I will discuss financial results for the quarter. Then I will turn the call over to Mike, our CEO, who will review the company’s business highlights. After that, I will follow up with our guidance for the next quarter. Finally, we will reserve time for questions and answers.
Revenue for the September quarter was $104.9 million, an increase of 7% from the prior quarter and an increase of 7.7% from the same quarter last year. Our diversified and new products across all segments continue to show growing momentum.
In terms of product mix, MOSFET revenue was $83.7 million, up 9% sequentially and up 17.1% year-over-year. Power IC revenue was $18.1 million, flat from the prior quarter and down 21.3% from a year ago. Service revenue was approximately $3.1 million as compared to $3 million for the prior quarter and $2.9 million for the same quarter last year.
Regarding the segment mix, this quarter’s computing segment represented 38.8% of the total revenue; consumer 24.6%; power supply and industrial 19.1%; communications 14.5%; service 2.9%; and others 0.1%.
Gross margin for the September quarter was 26.3% as compared to 25.6% in the prior quarter and 22.5% for the same quarter last year. The increase in gross margin quarter-over-quarter was mainly driven by the improved product mix and higher utilization, partially offset by the cost increase in raw materials and foundry services, as we had mentioned in our previous earnings call.