AOSL

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 5:00 p.m. ET Chief Executive Officer - Stephen Chang Chief Financial Officer - Yifan Liang Investor Relations - Steven C. Pelayo Operator: Hello, everyone. Thank you for joining us, and welcome to the Alpha and Omega Semiconductor Fiscal Q4 2026 Earnings Call. [Operator Instructions] I will now hand the call over to Steven Pelayo, Investor Relations. Please go ahead. Steven C. Pelayo: Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal 2026 fourth quarter financial results. I'm Steven Pelayo, Investor Relations representative for AOS. With me today are Stephen Chang, our CEO; and Yifan Liang, our CFO. This call is being recorded and broadcast live over the web. A replay will be available for 7 days following the call via the link in the Investor Relations section of our website. Our call will proceed as follows today. Stephen will begin business updates, including strategic highlights and a detailed segment report. After that, Yifan will review the financial results and provide guidance for the September quarter. Finally, we will have a Q&A session. The earnings release was distributed over the wire today, August 12, 2026, after the market closed. The release is also posted on the company's website. Our earnings release and this presentation include 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. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release. We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the 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. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligation to update the information provided in today's call. Now I'll turn the call over to our CEO, Stephen Chang. Stephen? Stephen Chang: Thank you, Steven. Welcome to Alpha and Omega's Fiscal 2026 Q4 Earnings Call. I will begin with a high-level overview of our results and then jump into segment details. We delivered fiscal Q4 revenue results above the midpoint of our guidance. Total June quarter revenue was $170.4 million, down 3.5% year-over-year and up 4% sequentially. Non-GAAP gross margin was 23.7%. Non-GAAP EPS was a loss of $0.13 per share. As anticipated, strength in Advanced Computing -- particularly AI and server applications -- and in the Communications segment offset softness in the traditional PC market, driven by higher memory costs, and in Gaming within the Consumer segment. Advanced Computing continues to be the strongest part of our business and provides clear evidence that our long-term strategy is delivering results. As our portfolio expands into higher performance applications, we are increasing content per platform, broadening customer adoption and strengthening our competitive position in AI infrastructure. To support this opportunity, we continue expanding our medium-voltage manufacturing capacity while increasing targeted R&D investments. With that, let me now cover our Q2 segment results and provide more details. Starting with Computing. June quarter revenue was down 8.6% year-over-year and up 5.6% sequentially and represented about 49.8% of total revenue. The segment results came in at the high end of our guidance for a low- to mid-single-digit sequential increase, driven by strength in Advanced Computing, which increased 35% sequentially and represented a record high 31% of the Computing segment in the June quarter. The strength in Advanced Computing was driven by AI, server, workstation, and cloud applications, while declines in PCs, tablets, and graphic cards offset and impacted the overall segment results. Demand for our medium-voltage MOSFET portfolio continues to expand across AI and cloud infrastructure with growing engagement from power supply providers, module makers, leading ODMs, cloud service providers, and hyperscale customers. Customer engagement and design activity continue to expand in these areas, and we expect these products to contribute more meaningfully during the second half of 2026 and into 2027. Looking ahead to the September quarter, we expect Advanced Computing revenue to grow by more than 40% sequentially, driven by continued strength across AI servers, graphics cards, and other high-performance computing platforms. Our AI and server business alone is expected to increase more than 60% sequentially and represent the majority of our Advanced Computing business. This growth is expected to more than offset the well-publicized weakness in traditional PC applications caused by memory chip constraints, resulting in flattish sequential growth for the overall Computing segment. More importantly, Advanced Computing is expected to exceed 40% of Computing segment revenue and approach 20% of total company revenue, another important step in shifting our product mix towards higher-value applications with richer product content and stronger profitability. Turning to the Consumer segment. June quarter revenue was down 21.3% year-over-year and up 8% sequentially and represented 12.3% of total revenue. The sequential results were better than our expectations for a relatively flattish quarter, with broad-based quarter-on-quarter growth across Gaming, Wearables, and Home Appliances. The year-over-year decline primarily reflects lower Gaming revenue as the current console product cycle nears maturity. For the September quarter, we expect Consumer segment revenue to decline approximately 25% sequentially, primarily reflecting lower revenue in Home Appliances, Wearables, and Gaming. Next, let's discuss the Communications segment. June quarter revenue was up 22.3% year-over-year and down 2.3% sequentially and represented 19.3% of total revenue. The results were in line with our expectations for a slight sequential decline, as seasonally lower battery PCM shipments ahead of new smartphone model transitions were largely offset by strong growth in DC-DC modules and networking applications. For the September quarter, we are ramping new products with our Tier 1 U.S. smartphone customer, and we continue to benefit from our strong position in premium smartphone platforms, where our differentiated battery protection solutions and support for higher charging currents are increasing BOM content and driving greater value per device. Outside of the premium tier, market conditions remain more challenging, as elevated memory pricing and supply constraints are pushing some OEMs toward lower performance components in certain platforms. We remain disciplined in managing our product mix, prioritizing higher performance sockets and premium smartphone platforms, where our technology and content opportunities are greatest. As a result, we expect Communications segment revenue to increase approximately 10% sequentially. Now let's talk about our last segment, Power Supply and Industrial, which accounted for 17.6% of total revenue and was up 1.4% year-over-year and up 5.2% sequentially. Overall, the results were in line with expectations for mid-single digit sequential growth, driven by sequential and year-over-year growth in E-Mobility as well as DC fans tied to AI server demand. This was partially offset by sequential and year-over-year declines in Quick Chargers and AC-DC power supplies. Looking ahead to the September quarter, we see stronger demand for Power Tools and continued momentum in DC fans supporting AI server rack applications. We also expect Quick Chargers and AC-DC power supplies to increase sequentially. While demand trends continue to vary across end markets, we remain encouraged by the expanding tangential opportunities in AI infrastructure and the improving demand environment across several industrial applications. Altogether, we expect Power Supply and Industrial revenue to increase nearly 30% sequentially. In closing, we are encouraged by the continued progress of our strategic transformation even as conditions remain uneven across several end markets. Advanced Computing is now a clear and growing contributor to both revenue and earnings, reinforcing the long-term direction of the business. That mix shift, combined with an improving pricing environment, is expected to support higher gross margins in the second half of calendar 2026, demonstrating the benefits of the strategic investments we have made over the past several years. Despite ongoing pressure on the broader PC and smartphone markets from elevated memory pricing and supply constraints, we believe our Computing and Communications businesses are outperforming their respective end markets, supported by our expanding Advanced Computing portfolio, total solution strategy, and disciplined focus on premium smartphone platforms with our Tier 1 U.S. customer. We are expanding manufacturing capacity in key product areas, increasing targeted R&D investments for next-generation AI infrastructure, and building a growing pipeline of new products across AI-related workloads. We believe this combination, a broader product portfolio, increasing content per platform, and continued investment in technology, positions AOS to deliver stronger, more profitable, and more sustainable long-term growth. I also want to address a recent event that is affecting our near-term outlook. A couple of days ago, Shanghai experienced Typhoon Dolphin and flooding that impacted portions of our packaging operations. We expect a slight impact to the September quarter. Our teams are moving quickly to restore effective capacity, minimize customer disruption and position us to recover as much of the delayed business as possible in the coming quarters. With that, I will now turn the call over to Yifan, for a discussion of our fiscal fourth quarter financial results and our outlook for the next quarter. Yifan? Yifan Liang: Thank you, Stephen. Good afternoon, everyone, and thank you for joining us. Revenue for the June quarter was $170.4 million, up 4% sequentially and down 3.5% year-over-year. In terms of product mix, DMOS revenue was $113.2 million, down 1.6% sequentially and up 5.6% over last year. Power IC revenue was $55.5 million, up 18.2% from the prior quarter and down 19.3% from a year ago. Assembly service and other revenue was $1.7 million, as compared to $1.9 million last quarter and $0.5 million for the same quarter last year. Non-GAAP gross margin was 23.7%, compared to 21.7% last quarter and 24.4% a year ago. The quarter-over-quarter increase was mainly impacted by better mix and higher utilization. Non-GAAP operating expenses were $45.3 million, compared to $44.3 million for the prior quarter and $40.9 million last year. The quarter-over-quarter increase was mainly due to higher R&D expenses. Non-GAAP quarterly EPS was $0.13 loss, compared to $0.28 loss per share last quarter and $0.02 earnings per share a year ago. Moving on to cash flow. Operating cash flow was negative $10 million compared to negative $8.3 million in the prior quarter and negative $2.8 million last year. EBITDA, excluding equity method investment income and loss was $10.1 million for the quarter, compared to $5.9 million last quarter and $10.5 million for the same quarter a year ago. Now let me turn to our balance sheet. We completed June quarter with a cash balance of $180.8 million compared to $190.3 million at the end of last quarter. During the quarter, we received the last $15 million installment payment and completed $150 million sale of our joint venture equity. Net trade receivables increased by $4.5 million sequentially. Days Sales Outstanding were 23 days for the quarter compared to 20 days for the prior quarter. Net inventory increased by $2.3 million quarter-over-quarter. Average days in inventory were 138 days for the quarter compared to 139 days for the prior quarter. CapEx for the quarter was $14.9 million compared to $12.1 million for the prior quarter. We expect CapEx for the September quarter to range from $15 million to $17 million. With that, now I would like to discuss September quarter guidance. We expect revenue to be approximately $176 million, plus or minus $10 million. GAAP gross margin to be 23.8%, plus or minus 1%. We anticipate non-GAAP gross margin to be 24.5%, plus or minus 1%. GAAP operating expenses to be $52.5 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be $46.5 million, plus or minus $1 million. Interest income to be $0.6 million higher than interest expense, and income tax expense to be in the range of $1.1 million to $1.3 million. With that, we will now open the call for questions. Operator, please start the Q&A session. Operator: [Operator Instructions] Your first question is from the line of Tore Svanberg from Stifel. Tore Svanberg: First question, could you talk a little bit about some of the parameters around your gross margin? You are guiding it up sequentially. What's sort of the contribution there between utilization and pricing? And where is utilization right now? Yifan Liang: Sure. Yes, for the June quarter, yes, our margin improved from March quarter by 200 basis points. A little bit bigger portion was because of the product mix, and then a smaller portion was because of the utilization and operation expenses. For the September quarter, we guided another 70, 80 basis points up. So primarily, it was considering the product -- better product mix. So we also factor in some of the impact from this typhoon impact on our back-end factory. So the net-net, we guided 24.5%. Tore Svanberg: Okay. Very good. And maybe as a follow-up to Stephen, and maybe adding your comments about pricing, you said you expect pricing to be higher in second half of '26. I'm just curious if there's sort of a lag time on when that impacts the P&L. And then with Advanced Computing now being 20% of revenue or approaching that for the September quarter, how should we think about that segment into fiscal '27? I'm pretty sure you're now prioritizing that market as opposed to these other areas that are seeing weakness from high memory costs. Stephen Chang: Sure. Let me address that part of that, which is the mix portion. And we are happy to see the margin expand in this past quarter also going forward. And we do see that mix is becoming more beneficial, especially as we're seeing more successes, particularly in the Advanced Computing area, specifically in the AI and server applications. The products that we sell into these applications are high-performance products are -- especially our high-performance MOSFETs and medium-voltage, where there's less competition, it is performance-driven, and we're able to command better pricing and better margin because these applications are very performance-critical. So that is becoming a larger proportion, not only of our Computing segment, but the overall part of the company. So as we continue to put more resources into here and as we're following and taking part in this AI expansion in the industry, we see that as helpful and accretive to our margin. Operator: Your next question comes from the line of Tyler Burmeister from Lake Street Capital Markets. Tyler Burmeister: Maybe first, another on the Advanced Computing, obviously, very strong. It looks like faster than we were expecting. You highlighted continued customer traction. I guess I was wondering if you could maybe give some color on how much of the growth both in the June quarter and the September outlook is kind of customer traction, new program wins versus just ramps of previous sockets? Stephen Chang: I would say it's a little bit of both. The benefit -- one of the great things about going into this market now is that we are serving a more diversified customer base. So we are seeing going into programs that go into hyperscalers, that go into power supplies for data centers. It is being spread into more customers as well as various programs within those customers. So I would say it's a little bit of both as these products are ramping. Tyler Burmeister: Okay. I appreciate that color. And then maybe looking out to the future in 800 volt, I wonder if you could just give us any view on the timing of that? Do you think that could be a material revenue contributor in 2027? Is that more of a socket design win in '27 lead to more meaningful revenue in the '28 time frame? Any color there would be appreciated. Stephen Chang: Sure. And I think we're a little too early to forecast that at the moment. We do see that, yes, 800 volt is right around the corner. We are promoting our solutions for that. I wouldn't be surprised that if next year, we see some business come for those applications. But this won't be like a 0, 1, and 1 and 0 for the standard solutions, and these will be phased in alongside with the other programs. Right now, we are still serving -- everyone is still serving the standard 48-volt platforms. And those will still coexist for a while as well, too. So -- and we're also ready for this when 800-volt comes with our new solution. So I think it will be a transition time, but we will benefit from either packs. Tyler Burmeister: Understood. I appreciate that. And then maybe kind of a couple of housekeeping ones. The R&D investments, obviously proving to be successful here. You guided for them to step up in September. I'm wondering if that $46.5 million OpEx guide for Q1, is that the level we should think about going forward? Or is there the chance that could continue to take modest steps up as we continue to make investments? Yifan Liang: Yes. We have already been gearing up our hirings and investment in R&D area, primarily in the AI and total solution for PC and smartphone and in those areas. So yes, we guided about $1 million for the September quarter. I would say December going forward, we still have to fill positions we need to fill. So I would say probably some modest growth there. Tyler Burmeister: Appreciate that. And then last quick one for me. Are you able to quantify what the impact to the flooding is in your September guidance for us? Yifan Liang: Sure. I mean -- as we said, yes, it has some impact. Right now, this thing occurred only a couple of days ago. So our team are moving quickly to restore the capacities and then minimizing the impact to our customers. So our initial assessment right now is in the range of a few million dollars and some impact on our margins, also kind of reflected in our September quarter guidance. Operator: Your next question is from the line of Craig Ellis from B. Riley Securities. Craig Ellis: I wanted to follow-up on just the Compute segment activity. Beyond the Advanced Compute 31% mix in fiscal 4Q, can you help us understand what the other subsegments of the business did, notebook, gaming cards, et cetera? Stephen Chang: Sure. Let's talk about standard PCs first. Standard PCs, June quarter in general, did grow modestly from the March quarter. But we expect there, right, to be an adjustment happening in the September quarter, as our end customers are having difficulty in dealing with the memory shortage as well as the CPU shortage. So we see this September quarter as an adjustment period for the PC business. But then at the same time, again, the Advanced Computing helps to cover for that. The other subsegment that I can comment on is on the graphics portion. Graphics this year, they aren't releasing any major platforms this year. The last release was last year, where we benefited quite well. We expect the next platform release to be sometime next year, and that will be something that we also will prioritize in terms of growth for the next year. So in this calendar year, mainly the story is about PCs and dealing with the memory shortage. But then in the meantime, with our fueling the growth of our AI and server business. Craig Ellis: That's helpful, Stephen. And then broadening the aperture a bit to include the Communications business and thinking about that with Compute. Given some of the things that you said on the call about the impacts from pricing and part availability to build intensity in the fiscal first quarter, can you talk about typical fiscal 2Q seasonality in those end markets? And what are customers telling you to expect this year as we look beyond fiscal 1Q into 2Q? Stephen Chang: Sure. In the Communications segment, we're mainly talking about smartphone battery and protection business. And here, this segment is also not immune to the memory shortages. In general, we have always been focusing mainly on the premium part of the market. And that part of the market certainly is faring better than the low- to mid-end part of the market. Over here, we're selling our high-performance MOSFETs. And in the latest generation, we are seeing charging currents continue to increase. So that will offset some of the pressures that may come from the memory impact. But overall, we are still preparing for a growth season for our battery PCM business. And in terms of looking out further, I think the premium phones should do better. They're not immune to it. But at the same time, there's a little more ability to -- for consumers to bear some of the price increases there. So that's where we see the battery business. Craig Ellis: Okay. And then I wasn't clear what you were indicating about the PC business beyond the fiscal first quarter and into the second quarter, what are your customers indicating about build intensity there, Stephen? Stephen Chang: Yes. We mainly see September as the main correction. We're not right now -- December quarter is still a little fuzzy to see exactly, but we're not -- right now, we're not expecting a correction at that point. And -- but we have to just see what the memory situation is like. Craig Ellis: Okay. And then just a clarification on operating expense. So we knew that we were going to increase R&D expense this year for new product work in Advanced Compute. It seems like that's having a positive impact. Can you help us understand the longer-term thinking about how you're weighing increased R&D intensity in the business? Is this something that we should expect would persist in calendar '27? Or do you exit '26 with the product programs in the right place, so R&D expense would grow to a more normalized level beyond this year? Stephen Chang: Yes. For us, we are in this investment mode where we are investing in the R&D. Most of that spend -- increase in spending, we expect it to be done in this calendar year in terms of the additional investments to build up the teams and build up the technology capabilities to address these additional growth opportunities. So most of that expansion we expect to happen this year. I would expect next year will be more just kind of standard organic type of growth as opposed to a stepped-up growth this year. Operator: [Operator Instructions] Your next question comes from the line of Patrick Muth from David Williams (sic) [ Needham ]. Patrick Muth: This is Patrick Muth on for David Williams over at Needham. Just a couple of questions. So as AI becomes a bigger share of revenue, should we expect gross margins to improve mainly because of this mix shift? Or is there a ceiling to how much AI volume can offset any weakness elsewhere? And then maybe also provide more color on the magnitude of the gross margin improvement from the mix shift in the second half of the calendar year. Stephen Chang: Sure. This is an area that we've been excited to take part and to see our products being adopted into these high-performance applications. We are still in that ramping mode in terms of several of these products were released either late last calendar year or beginning of this calendar year. So the ramp that we saw was really starting just from this March quarter onwards. And we are continuing to design in our solutions and to win business. And so in general, we expect to see this segment continue to grow in the coming quarters and as we win more projects and as we open up into more customers. Yes, I'll stop there. Operator: We have reached the end of the Q&A session. I will now turn the call back to Steven Pelayo, for closing remarks. Steven C. Pelayo: Okay. Great. Before we conclude, I'd like to just highlight a few upcoming investor events. The management team will be participating in the 7th Annual Needham Virtual Semiconductor and SemiCap 1x1 Conference on August 20; also at the Jefferies Semi, IT Hardware & Communications Technology Summit on August 26 in Chicago, Illinois; and the Benchmark 2026 Tech, Media and Telecom Conference on September 10 in New York, New York. If you wish to request a meeting, please contact the institutional sales representative at the sponsoring bank. This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to speaking with you again next quarter. Take care. Yifan Liang: Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Alpha And Omega Semiconductor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alpha And Omega Semiconductor wasn’t one of them. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Advanced Computing revenue grew 35% sequentially, reaching a record 31% of the Computing segment as the company shifts toward higher-value AI infrastructure. Management attributes overall segment resilience to increased content per platform and broader customer adoption across AI servers, workstations, and cloud applications. Traditional PC and tablet markets faced headwinds due to higher memory costs and supply constraints, leading to an adjustment period in the September quarter. The Communications segment prioritized premium smartphone platforms to capture higher BOM content from differentiated battery protection and higher charging currents. Power Supply and Industrial growth was driven by E-Mobility and DC fans specifically tied to increasing AI server rack demand. Manufacturing capacity for medium-voltage MOSFETs is being expanded to support growing engagement with hyperscale customers and power supply providers. Advanced Computing is projected to grow over 40% sequentially in the September quarter, expected to approach 20% of total company revenue. AI and server-specific business is forecasted to increase more than 60% sequentially, becoming the majority of the Advanced Computing portfolio. Management expects higher gross margins in the second half of calendar 2026, supported by an improving pricing environment and a richer product mix. R&D investments are expected to show modest growth through the end of the calendar year as the company fills specialized roles for AI and total solution development. The September quarter guidance includes a projected impact of a few million dollars due to packaging operation disruptions caused by Typhoon Dolphin. Typhoon Dolphin and subsequent flooding in Shanghai impacted packaging operations, necessitating rapid capacity restoration efforts to minimize customer disruption. The company completed the final $15 million installment of its $150 million joint venture equity sale, strengthening the balance sheet. Elevated memory pricing and supply constraints are identified as a persistent risk, pushing some non-premium OEMs toward lower-performance components. Gaming revenue is experiencing a cyclical decline as current console product cycles reach maturity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The 200 basis point improvement in the June quarter was primarily driven by a better product mix, with a smaller contribution from higher utilization. September quarter guidance assumes an additional 70-80 basis point increase, factoring in the typhoon's impact on back-end factory operations. Management noted that high-performance medium-voltage MOSFETs face less competition and command better pricing because they are performance-critical for AI applications. The shift toward these high-value applications is expected to be accretive to overall corporate margins as they become a larger portion of the revenue mix. Management believes it is too early to forecast specific 800-volt revenue but expects some business to materialize in 2027. Standard 48-volt platforms are expected to coexist with 800-volt solutions for a transition period rather than a sudden replacement. The current step-up in R&D spending is intended to build technology capabilities for AI opportunities and is expected to be largely completed within this calendar year. Spending in 2027 is expected to return to a more normalized, organic growth rate following the current investment phase.

This article first appeared on GuruFocus. Revenue: $170.4 million, up 4% sequentially and down 3.5% year-over-year. Non-GAAP Gross Margin: 23.7%, compared to 21.7% in the prior quarter and 24.4% a year ago. Non-GAAP EPS: Loss of $0.13 per share, compared to a loss of $0.28 per share last quarter and earnings of $0.02 per share a year ago. Non-GAAP Operating Expenses: $45.3 million, up from $44.3 million in the prior quarter and $40.9 million last year. Operating Cash Flow: Negative $10 million, compared to negative $8.3 million in the prior quarter and negative $2.8 million last year. EBITDA (excluding equity method investment income/loss): $10.1 million, compared to $5.9 million last quarter and $10.5 million a year ago. Cash Balance: $180.8 million, down from $190.3 million at the end of last quarter. CapEx: $14.9 million for the quarter, compared to $12.1 million in the prior quarter. Computing Segment Revenue: Down 8.6% year-over-year and up 5.6% sequentially, representing 49.8% of total revenue. Consumer Segment Revenue: Down 21.3% year-over-year and up 8% sequentially, representing 12.3% of total revenue. Communications Segment Revenue: Up 22.3% year-over-year and down 2.3% sequentially, representing 19.3% of total revenue. Power Supply and Industrial Segment Revenue: Up 1.4% year-over-year and up 5.2% sequentially, representing 17.6% of total revenue. DMOS Revenue: $113.2 million, down 1.6% sequentially and up 5.6% year-over-year. Power IC Revenue: $55.5 million, up 18.2% sequentially and down 19.3% year-over-year. Assembly Service and Other Revenue: $1.7 million, compared to $1.9 million last quarter and $0.5 million a year ago. Warning! GuruFocus has detected 4 Warning Signs with AOSL. Is AOSL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Advanced computing revenue surged 35% sequentially, reaching a record 31% of the computing segment, driven by AI, server, and cloud applications. AI and server business is expected to grow over 60% sequentially in the September quarter, with advanced computing approaching 20% of total company revenue. Gross margin improved 200 basis points sequentially to 23.7%, with further improvement expected in the September quarter due to better product mix and pricing. Communications segment grew 22.3% year-over-year, supported by strong premium smartphone demand and increased content per device. Power supply and industrial segment grew 5.2% sequentially, with continued momentum in DC fans for AI server racks and improving demand in e-mobility and power tools. Total revenue declined 3.5% year-over-year, with weakness in traditional PC and gaming markets due to memory chip constraints. Consumer segment revenue is expected to decline approximately 25% sequentially in the September quarter, reflecting softness in home appliances, wearables, and gaming. Non-GAAP EPS was a loss of $0.13 per share, and operating cash flow remained negative at $10 million. The company faces near-term disruption from Typhoon Dolphin and flooding in Shanghai, impacting packaging operations and expected to reduce September quarter revenue by approximately $2 million. Elevated memory pricing and supply constraints are pushing some OEMs toward lower-performance components, pressuring the communications segment outside the premium tier. Q: Could you talk about the parameters around your gross margin guidance, including the contribution between utilization and pricing, and where utilization currently stands?A: Stephen Chang (CEO) explained that the June quarter margin improved by 200 basis points sequentially, with the larger portion driven by product mix and a smaller portion from utilization and operational expenses. For the September quarter, the company guided another 70-80 basis points improvement, primarily due to a better product mix, while also factoring in some impact from the Typhoon Dolphin flooding on the backend factory, resulting in a 24.5% non-GAAP gross margin guidance. Q: With advanced computing now approaching 20% of total revenue, how should we think about the segment's trajectory into fiscal '27, and is there a lag time on when improved pricing impacts the P&L?A: Stephen Chang (CEO) noted that the mix shift is becoming more beneficial, especially with successes in advanced computing, specifically AI and server applications. The products sold into these applications are high-performance medium-voltage MOSFETs where there is less competition and performance is critical, allowing the company to command better pricing and margins. As this segment becomes a larger proportion of the business, it is accretive to overall margins. Q: How much of the advanced computing growth in the June quarter and September outlook is from customer traction and new program wins versus ramps of previous sockets?A: Stephen Chang (CEO) stated that it is a little bit of both. The company is benefiting from serving a more diversified customer base, including hyperscalers and power supply providers for data centers. The growth is spread across more customers as well as various programs within those customers as these products ramp. Q: What is the timing for 800-volt solutions, and could they be a material revenue contributor in 2027 or more of a 2028 timeframe?A: Stephen Chang (CEO) indicated it is too early to forecast, but 800-volt is right around the corner. The company is promoting its solutions and wouldn't be surprised to see some business next year, though it will be phased in alongside existing 48-volt platforms. AOS is ready for the transition and will benefit from either path. Q: Is the $46.5 million OpEx guide for September the level to think about going forward, or could it continue to step up with investments?A: Stephen Chang (CEO) confirmed the company is gearing up hiring and investment in R&D, primarily in AI and power solutions for data centers and smartphones. The September quarter guide includes about a $1 million increase, and there are still a few positions to fill, so modest growth is expected going into the December quarter. Q: Can you quantify the impact of the Shanghai flooding on September guidance?A: Stephen Chang (CEO) stated the initial assessment is an impact in the range of $2 million, with some effect on margins. The team is moving quickly to restore capacity and minimize customer disruption, and this has been reflected in the September quarter guidance. Q: Beyond advanced computing, how did the other sub-segments of the computing business perform, such as notebooks and gaming cards?A: Stephen Chang (CEO) noted that standard PCs grew modestly in the June quarter from March, but an adjustment is expected in September as end customers deal with memory and CPU shortages. For graphics, no major platforms are being released this year; the last release was last year where the company benefited well. The next platform release is expected sometime next year, which will be prioritized for growth. Q: Given the impacts from pricing and part availability, what is typical fiscal 2Q seasonality for the communications and computing end markets, and what are customers indicating beyond fiscal 1Q?A: Stephen Chang (CEO) explained that the communications segment, mainly smartphone battery protection, is not as exposed to memory shortages. The company focuses on the premium market, which is faring better, and increasing charging currents are offsetting some pressures. For PCs, September is seen as the main correction, and the December quarter is still unclear, but no further correction is currently expected. Q: Should we expect R&D expense growth to persist into calendar '27, or will it normalize after this year's investment cycle?A: Stephen Chang (CEO) confirmed the company is in an investment mode, with most of the additional R&D spending expected to be completed this calendar year to build up teams and technology capabilities. Next year is expected to see more standard organic growth rather than the stepped-up growth seen this year. Q: As AI becomes a bigger share of revenue, should gross margins improve mainly due to mix shift, and is there a ceiling to how much AI volume can offset weakness elsewhere?A: Stephen Chang (CEO) expressed excitement about the company's products being adopted into high-performance applications. The company is still in a ramping mode, with several products released late last calendar year or early this year. The ramp started from the March quarter, and as the company wins more projects and opens up to more customers, the segment is expected to continue growing in the coming quarters. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SUNNYVALE, Calif., August 12, 2026--(BUSINESS WIRE)--Alpha and Omega Semiconductor Limited ("AOS") (NASDAQ: AOSL), today reported financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2026. The results for the fiscal fourth quarter ended June 30, 2026 were as follows: The non-GAAP financial measures in the schedule above and under the section "Financial Results for Fiscal Q4 Ended June 30, 2026" below exclude the effect of share-based compensation expenses, equity method investment loss, and income tax effect of non-GAAP adjustments in each of the periods presented, as well as amortization of purchased intangible, settlement and legal costs related to government investigation for the three months ended June 30, 2025, impairment of long-lived assets for the three months ended March 31, 2026 and June 30, 2025, and China withholding tax related to investment in CQJV for the three months ended June 30, 2026. A detailed reconciliation of GAAP and non-GAAP financial measures is included at the end of this press release. The results for the fiscal years ended June 30, 2026 and 2025 were as follows: The non-GAAP financial measures in the schedule above exclude the effect of share-based compensation expenses, equity method investment loss (income), impairment of long-lived assets, and income tax effect of non-GAAP adjustments for fiscal years ended June 30, 2026 and 2025, and China withholding tax related to investment in CQJV for fiscal year ended 2026, as well as amortization of purchased intangible, settlement and legal costs related to government investigation for fiscal year ended June 30, 2025. A detailed reconciliation of GAAP and non-GAAP financial measures is included at the end of this press release. Financial Results for Fiscal Q4 Ended June 30, 2026 Revenue was $170.4 million, a decrease of 3.5% from the same quarter last year and an increase of 4.0% quarter-over-quarter. GAAP gross margin was 23.1%, down from 23.4% from the same quarter last year and up from 21.1% in the prior quarter. Non-GAAP gross margin was 23.7%, down from 24.4% from the same quarter last year and up from 21.7% in the prior quarter. GAAP operating expenses were $50.3 million, down from $52.9 million from the same quarter last year and up from $48.6 million in the prior quarter. Non-GAAP operating expenses were $45.3 million, up from $40.9 million from the same quarter last year and up from $44.3 million from prior quarter. GAAP operating loss was $11.0 million, down from $11.6 million from the same quarter last year and down from $14.1 million from the prior quarter. Non-GAAP operating loss was $4.8 million as compared to $8.7 million from last quarter and an operating income of $2.3 million for the same quarter last year. GAAP net loss per share was $0.43, compared to $0.46 for the prior quarter and $2.58 per share for the same quarter last year. Non-GAAP net loss per share was $0.13, compared to $0.28 net loss per share for the prior quarter and $0.02 net earnings per share for the same quarter last year. Consolidated cash flow used in operating activities was $10.0 million, as compared to $8.3 million of consolidated cash flow used in operating activities in prior quarter. The Company closed the quarter with $180.8 million of cash and cash equivalents. AOS Chief Executive Officer Stephen Chang commented, "We delivered fiscal Q4 results above the midpoint of our guidance, driven by continued strength in Advanced Computing — particularly AI and server applications — and in our Communications segment, where we are ramping new products with our Tier 1 U.S. smartphone customer. This growth more than offset ongoing softness in the traditional PC market tied to elevated memory pricing. Advanced Computing is now a clear and growing contributor to both revenue and earnings, and combined with an improving pricing environment, we expect this mix shift to support higher gross margins in the second half of calendar 2026." Mr. Chang continued, "Despite ongoing pressure on the broader PC and smartphone markets from elevated memory pricing and supply constraints, we believe AOS is well positioned to outperform, supported by the expansion of our Advanced Computing portfolio, our differentiated total solutions strategy, and our disciplined focus on higher-value applications. As we continue investing in technology, manufacturing capacity, and targeted R&D, we believe these advantages will enable us to continue growth and improve profitability through calendar 2026 and beyond." Business Outlook for Fiscal Q1 Ending September 30, 2026 The following statements are based on management's current expectations. These statements are forward-looking, and actual results may differ materially. AOS undertakes no obligation to update these statements. Revenue is expected to be $176 million plus or minus $10 million. GAAP gross margin is expected to be 23.8% plus or minus 1%. Non-GAAP gross margin is expected to be 24.5% plus or minus 1%. GAAP operating expenses are expected to be in the range of $52.5 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $46.5 million plus or minus $1 million. Interest income is expected to be $0.6 million higher than interest expense, and Tax expense is expected to be in the range of $1.1 million to $1.3 million. Conference Call and Webcast AOS plans to hold an investor teleconference and live webcast to discuss the financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2026 today, August 12, 2026 at 2:00 p.m. PT / 5:00 p.m. ET. To listen to the live conference call, please dial +1 (585) 542 9983 or +1 (833) 461 5787 if dialing from outside the United States and Canada. The access code is 506 402 980. A live webcast of the call will also be available in the "Events & Presentations" section of the company’s investor relations website, http://investor.aosmd.com. The webcast replay will be available for up to one year after the live call on the same website. In addition, a copy of the script of management’s prepared remarks and a live webcast of the call will also be available in the "Events & Presentations" section of the company’s investor relations website, http://investor.aosmd.com. Forward Looking Statements This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, opportunities in the Advance Computing market, market trends in the semiconductor industry, expectation on product mix and margin level, ability to gain market share and increased BOM content, seasonality of our business, our ability to sustain growth and expand our end markets, expectations regarding R&D investment and high performance application; the success of our investment strategy, macro and geopolitical uncertainties, our projected amount of revenue, gross margin, operating income (loss), income tax expenses, net income (loss), share-based compensation expenses, non-GAAP gross margin, non-GAAP operating expenses, and income tax expenses, our ability to grow our sales and market share, and other information under the section entitled "Business Outlook for Fiscal Q1 Ending September 30, 2026." Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the state of semiconductor industry and seasonality of our markets; decline of PC markets; ; difficulties and challenges in executing our diversification strategy into different market segments; ordering pattern from distributors and seasonality; changes in regulatory environment, including tariff and trade policies; our ability to introduce or develop new and enhanced products that achieve market acceptance; government policies on our business operations in China; the actual product performance in volume production; the quality and reliability of our product, our lack of control over the joint venture in China; our ability to achieve design wins; the general business and economic conditions; our ability to maintain factory utilization at a desirable level; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2026 to be filed by AOS with the SEC and other periodic reports we filed with the SEC. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and AOS undertakes no duty to update such information, except as required under applicable law. Use of Non-GAAP Financial Measures To supplement our unaudited consolidated financial statements presented on a basis consistent with U.S. GAAP, we disclose certain non-GAAP financial measures for our historical performance, including non-GAAP gross profit, gross margin, operating expenses, operating income (loss), net income (loss), diluted earnings per share ("EPS") and EBITDAS. These supplemental measures exclude, among other items, share-based compensation expenses, legal and professional fees related to government investigation, amortization of purchased intangible, impairment of long-lived assets, income tax effect of non-GAAP adjustments and equity method investment income (loss) from equity investee. We also disclose certain non-GAAP financial measures in our financial guidance for the next quarter, including non-GAAP gross margin and non-GAAP operating expenses. We believe that these historical and forward-looking non-GAAP financial measures provide useful information to both management and investors by excluding certain items and expenses that are not indicative of our core operating results or do not reflect our normal business operations. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as non-GAAP net income (loss) or non-GAAP operating expenses, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. In addition, we included the amount of income tax effect of non-GAAP adjustments in the non-GAAP net income (loss) reconciliation table for all periods presented as management believes that such non-GAAP presentation provides useful information to investors, even though the amounts are not significant. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures both in the text in this press release and in the tables attached hereto. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. About Alpha and Omega Semiconductor Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer, and global supplier of a broad range of discrete power devices, wide bandgap power devices, power management ICs, and modules, including a wide portfolio of Power MOSFET, SiC, IGBT, IPM, TVS, HV Gate Drivers, Power IC, and Digital Power products. AOS has developed extensive intellectual property and technical knowledge that encompasses the latest advancements in the power semiconductor industry, which enables us to introduce innovative products to address the increasingly complex power requirements of advanced electronics. AOS differentiates itself by integrating its Discrete and IC semiconductor process technology, product design, and advanced packaging know-how to develop high-performance power management solutions. AOS’ portfolio of products targets high-volume applications, including personal computers, graphics cards, datacenters, AI servers, smartphones, consumer and industrial motor controls, TVs, lightings, automotive electronics, and power supply units for various equipment. For more information, please visit www.aosmd.com. The following unaudited consolidated financial statements are prepared in accordance with U.S. GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260808157658/en/ Contacts Investor and media inquiries: The Blueshirt GroupGary Dvorchak, CFAIn US +1 323 240 5796In China +86 (138) [email protected] Steven PelayoThe Blueshirt [email protected] +1 (360) 808-5154

Interested in Alpha and Omega Semiconductor Limited? Here are five stocks we like better. Revenue and margins improved sequentially: Fiscal Q4 revenue reached $170.4 million, while non-GAAP gross margin rose to 23.7% and the adjusted EPS loss narrowed to $0.13. AI and advanced computing are driving growth: Advanced-computing revenue rose 35% sequentially, and the company expects it to grow more than 40% in Q1, with AI and server revenue projected to increase over 60%. September outlook is positive but includes disruption risks: Revenue is forecast at about $176 million, supported by communications and power-supply growth, though Shanghai flooding and Typhoon Dolphin are expected to cause a few million dollars in revenue impact and some margin pressure. Alpha and Omega Semiconductor ready to bounce, DOJ cloud lifts Alpha and Omega Semiconductor (NASDAQ:AOSL) reported fiscal 2026 fourth-quarter revenue above the midpoint of its guidance, as growth in advanced computing and communications helped offset softer demand in traditional PCs and gaming applications. Revenue for the June quarter totaled $170.4 million, up 4% sequentially but down 3.5% from a year earlier. The company posted a non-GAAP gross margin of 23.7%, up from 21.7% in the prior quarter, while non-GAAP earnings per share were a loss of $0.13, improving from a loss of $0.28 in the March quarter. A year earlier, the company reported non-GAAP earnings of $0.02 per share. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat SGH Bottomed, But Can It Reverse And Move Higher? CEO Stephen Chang said advanced computing, including artificial intelligence and server applications, remained the company’s strongest business area. He said demand in those markets and in communications offset weakness in traditional PCs, where higher memory costs have pressured demand, as well as lower gaming revenue in the consumer segment. Computing revenue represented 49.8% of total quarterly revenue. The segment rose 5.6% sequentially but declined 8.6% year over year. Within computing, advanced computing revenue increased 35% from the prior quarter and reached a record 31% of segment revenue. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Chang attributed the advanced-computing growth to AI, server, workstation and cloud applications. The company’s medium-voltage MOSFET products are seeing expanding demand across AI and cloud infrastructure, according to Chang, with engagement from power-supply providers, module makers, original design manufacturers, cloud service providers and hyperscale customers. For the September quarter, the company expects advanced computing revenue to rise more than 40% sequentially. Its AI and server business alone is projected to increase more than 60% sequentially and account for the majority of advanced computing revenue. Advanced computing is expected to exceed 40% of computing segment revenue and approach 20% of total company revenue. → First Solar’s Profit Engine Faces a New Policy Test in Washington That growth is expected to offset continued weakness in traditional PCs, producing roughly flat sequential results for the overall computing segment. Chang said customers are dealing with memory and CPU shortages, making the September quarter an adjustment period for the PC business. The company was not expecting another correction in the December quarter, though Chang said visibility remains unclear because of the memory market. Chang also said AI-related products carry stronger pricing and margins because they are high-performance, performance-critical products with less competition. The company is expanding medium-voltage manufacturing capacity and increasing research and development investment for next-generation AI infrastructure. The consumer segment accounted for 12.3% of revenue and rose 8% sequentially, though it was down 21.3% from the prior-year period. Broad-based quarterly growth in gaming, wearables and home appliances exceeded the company’s expectations for a relatively flat quarter. However, the year-over-year decline reflected lower gaming revenue as the current console cycle approaches maturity. For the September quarter, Alpha and Omega expects consumer revenue to decline about 25% sequentially, primarily due to lower sales in home appliances, wearables and gaming. Communications revenue accounted for 19.3% of total revenue, rising 22.3% year over year and declining 2.3% sequentially. Seasonally lower battery protection circuit module shipments ahead of smartphone model transitions were largely offset by growth in DC/DC modules and networking applications. The company expects communications revenue to increase approximately 10% sequentially in the September quarter as new products ramp with a Tier 1 U.S. smartphone customer. Chang said the company is prioritizing premium smartphone platforms, where battery-protection solutions supporting higher charging currents can increase content per device. He noted that lower-end smartphone markets remain more challenging amid elevated memory pricing and supply constraints. Power supply and industrial revenue, which represented 17.6% of total revenue, increased 5.2% sequentially and 1.4% year over year. Growth in e-mobility and DC fans tied to AI server demand was partly offset by declines in quick chargers and AC/DC power supplies. The company expects the segment to increase nearly 30% sequentially in the September quarter, supported by demand for power tools, DC fans for AI server racks, quick chargers and AC/DC power supplies. CFO Yifan Liang said the 200-basis-point sequential improvement in June-quarter non-GAAP gross margin was driven primarily by product mix, with utilization and operating factors providing a smaller contribution. The company expects non-GAAP gross margin of 24.5%, plus or minus 1 percentage point, in the September quarter, reflecting further mix improvement as well as an allowance for weather-related manufacturing disruption. Non-GAAP operating expenses were $45.3 million in the June quarter, up from $44.3 million in the March quarter, mainly because of higher R&D spending. The company expects non-GAAP operating expenses of $46.5 million, plus or minus $1 million, for the September quarter. Liang said additional hiring and investment are focused on AI and total-solution opportunities in PCs and smartphones, with some modest expense growth still possible after September. Chang said most of the planned step-up in R&D investment is expected to occur during calendar 2026, followed by more normal organic growth next year. Operating cash flow was negative $10 million, compared with negative $8.3 million in the prior quarter. The company ended the June quarter with $180.8 million in cash, down from $190.3 million at the end of the March quarter. During the quarter, it received the final $15 million installment payment related to, and completed, the $150 million sale of its joint-venture equity. For the September quarter, Alpha and Omega forecast revenue of approximately $176 million, plus or minus $10 million. It projected GAAP gross margin of 23.8%, plus or minus 1 percentage point, and non-GAAP gross margin of 24.5%, plus or minus 1 percentage point. Capital expenditures are expected to range from $15 million to $17 million. The outlook incorporates an estimated impact of a few million dollars in revenue and some margin pressure from Typhoon Dolphin and flooding in Shanghai that affected portions of the company’s packaging operations. Chang said the company expects a slight impact during the September quarter and is working to restore capacity, minimize customer disruption and recover delayed business in subsequent quarters. Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) is a designer and supplier of power semiconductor components used in power management applications across a range of electronic systems. The company offers a broad portfolio of discrete and integrated power devices, including power MOSFETs, rectifiers, voltage regulators, and power management ICs. These products are optimized for high efficiency, compact form factors and thermal performance, catering to the growing demands of energy-sensitive applications in computing, consumer electronics, communications and industrial markets. Since its founding in 2000, Alpha and Omega Semiconductor has leveraged in-house design expertise and strategic partnerships with manufacturing facilities to deliver scalable, high-volume production. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Alpha and Omega Semiconductor Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

nLight (LASR) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.14%. A quarter ago, it was expected that this laser maker would post earnings of $0.08 per share when it actually produced earnings of $0.2, delivering a surprise of +150%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. nLight, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $82.59 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.19%. This compares to year-ago revenues of $61.74 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. nLight shares have added about 100.6% since the beginning of the year versus the S&P 500's gain of 12.8%. While nLight has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for nLight was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $66.01 million in revenues for the coming quarter and $0.52 on $301.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Alpha and Omega Semiconductor (AOSL), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This chipmaker is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of -1250%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Alpha and Omega Semiconductor's revenues are expected to be $168 million, down 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report nLight (LASR) : Free Stock Analysis Report Alpha and Omega Semiconductor Limited (AOSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lattice Semiconductor (LSCC) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.46%. A quarter ago, it was expected that this chipmaker would post earnings of $0.36 per share when it actually produced earnings of $0.41, delivering a surprise of +13.89%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Lattice, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $201.08 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.65%. This compares to year-ago revenues of $123.97 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lattice shares have added about 72.9% since the beginning of the year versus the S&P 500's gain of 11%. While Lattice has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lattice was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $193.66 million in revenues for the coming quarter and $1.79 on $749.72 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Alpha and Omega Semiconductor (AOSL), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This chipmaker is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of -1250%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Alpha and Omega Semiconductor's revenues are expected to be $168 million, down 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report Alpha and Omega Semiconductor Limited (AOSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research