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The call presented a mixed picture: clear strategic and product‑mix progress with meaningful traction in advanced computing and DMOS growth, plus encouraging communications performance and constructive June guidance. However, these positives are offset by worsening EPS losses, margin compression, negative operating cash flow, a steep decline in Power IC revenue, and macro/ component headwinds (memory pricing, China softness) that create uncertainty for H2 2026. Management’s investments and capacity expansion signal confidence in a stronger exit to 2026/2027, but near‑term financial metrics remain pressured.
Management guided June-quarter revenue of approximately $168 million ± $10 million, GAAP gross margin of 22.3% ± 1% and non‑GAAP gross margin of 23% ± 1%, GAAP operating expenses of ~$52 million ± $1 million and non‑GAAP operating expenses of ~$45.5 million ± $1 million, with interest income expected to exceed interest expense by ~$1 million and income tax expense of $1.0–$1.2 million; they forecast CapEx of $15–$17 million for the June quarter. By segment they expect Computing to rise low– to mid‑single digits sequentially (driven by AI/server/advanced computing), Consumer to be roughly flat sequentially, Communications to decline slightly sequentially while sustaining strong year‑over‑year growth, and Power Supply & Industrial to increase mid‑single digits sequentially. Management expects a return to sequential growth and ~130 basis points of gross‑margin expansion versus March (about half from utilization improvement and half from mix); cash was $190.3 million at quarter end.
Total March quarter revenue was $163.8M, down 0.5% year‑over‑year but up 0.9% sequentially, coming in slightly above the midpoint of guidance and management calling the December and March quarters a bottom for revenue and gross margin.
DMOS revenue was $115.1M, up 13.9% sequentially and up 7.7% year‑over‑year, driven by increasing contribution from medium‑voltage MOSFETs and higher‑performance sockets that management expects to support margin expansion.
Advanced computing more than doubled sequentially and increased >40% year‑over‑year, representing ~25% of the Computing segment and driving broadening customer engagement across GPU and CPU platforms (hyperscalers, cloud providers).
Communications revenue was $33.8M (20.6% of total), up 18.7% year‑over‑year and up 1.9% sequentially, led by Tier‑1 U.S. smartphone customers and BOM content expansion in premium models.
Company guided June quarter revenue to ~$168M ±$10M and expects non‑GAAP gross margin to rise to ~23.0% ±1% (GAAP gross margin ~22.3% ±1%), citing ~130 bps sequential margin improvement driven roughly half by utilization and half by improved product mix.
Ended quarter with $190.3M cash (down from $196.3M last quarter); repurchased 214k shares for $4.2M under buyback program and repurchased 292k vested RSUs for $6.2M, demonstrating continued capital return activity.
Management is increasing R&D investments focused on power ICs and high‑performance MOSFETs, and actively expanding medium‑voltage capacity to support AI/data center growth with backlog providing visibility into demand.
Hello, everyone. Thank you for joining us, and welcome to the Alpha and Omega Semiconductor Fiscal Q3 2026 Earnings Call.? [Operator Instructions] I will now hand the call over to Steven Pelayo, Investor Relations. Please go ahead.
Good afternoon, everyone, and welcome to Alpha Omega Semiconductor's conference call to discuss fiscal 2026 third 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 June quarter.
Finally, we will have a Q&A session.? The earnings release was distributed over the wire today, May 6, 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 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 ...