(AOSL) 2023 Q4 法說會逐字稿

Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor’s conference call to discuss fiscal 2023 fourth quarter and fiscal year-end financial results. I am Yujia Zhai, Investor Relations representative for AOS.

大家下午好，歡迎參加 Alpha and Omega Semiconductor 的電話會議，討論 2023 財年第四季度和財年末的財務業績。我是 AOS 投資者關係代表翟宇佳。

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.

今天與我在一起的有我們的首席執行官 Stephen Chang 和我們的首席財務官梁一凡。這次通話正在被錄製並通過網絡進行直播。電話會議後 7 天內可通過我們網站投資者關係部分的鏈接進行重播。

Our call will proceed as follows today. Stephen will begin business updates followed by detailed segment report. After that, Yifan will review the financial results and provide guidance for the September quarter. Finally, we will have the Q&A session.

今天我們的電話會議將進行如下。斯蒂芬將開始業務更新，然後是詳細的分部報告。此後，一帆將審查財務業績並為九月季度提供指導。最後，我們將進行問答環節。

The earnings release was distributed over wire today, August 9, 2023, after the market close. 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.

該財報於今天（2023 年 8 月 9 日）收盤後通過網絡發布。該新聞稿也發佈在該公司的網站上。我們的收益發布和本演示文稿包括非公認會計準則財務指標。我們使用非公認會計準則衡量標準是因為我們相信它們提供了有關我們經營業績的有用信息，投資者應將這些信息與公認會計準則衡量標準結合起來考慮。這些非公認會計準則衡量標準與可比公認會計準則衡量標準的調節表包含在收益發布中。

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 from such expectations.

我們提醒您，在本次電話會議中，我們將做出某些前瞻性陳述，包括對業務前景和財務預測的討論。這些前瞻性陳述基於管理層當前的預期，涉及可能導致我們的實際結果與此類預期存在重大差異的風險和不確定性。

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 the information provided in today's call.

有關這些風險和不確定性的更詳細描述，請參閱我們最近和隨後向 SEC 提交的文件。我們不承擔更新今天電話會議中提供的信息的義務。

Now, I will turn the call over to our CEO, Stephen Chang. Stephen?

現在，我將把電話轉給我們的首席執行官 Stephen Chang。斯蒂芬？

Thank you, Yujia, and good afternoon, everyone. I will begin today with a high-level overview of our results and then jump into segment details. Our team executed well and delivered an excellent quarter.

謝謝雨嘉，大家下午好。今天我將從對我們的結果進行高層次概述開始，然後進入細分市場的詳細信息。我們的團隊執行良好，並交付了出色的季度業績。

Our fiscal Q4 revenue was above the mid-point of our guidance and gross margin was above the high-end of our guidance, which resulted in a solid bottom line. Revenue was $161.5 million, down 16.7% year-over-year and up 21.9% sequentially. Non-GAAP gross margin was 28.5%, and non-GAAP EPS was $0.19. These results were driven by solid recovery across notebook and desktop computing applications and strength of our diversified customer base and product portfolio in Power Supply and Industrial end markets.

我們的第四財季收入高於我們指導的中點，毛利率高於我們指導的高端，這帶來了堅實的底線。收入為 1.615 億美元，同比下降 16.7%，環比增長 21.9%。非 GAAP 毛利率為 28.5%，非 GAAP 每股收益為 0.19 美元。這些業績的推動因素是筆記本和台式計算應用的強勁復甦，以及我們在電源和工業終端市場的多元化客戶群和產品組合的實力。

Recall from our prior quarter call, we said our calendar Q1 results reflected our efforts to bring customer inventory levels back into balance as quickly as possible. We were confident then that due to our resilient fundamentals, we would see a swift recovery in Q2 and continued recovery in Q3 as we go into our peak season. I'm happy to report that it is playing out in line with our expectations.

回想一下我們上一季度的電話會議，我們表示第一季度的業績反映了我們為盡快使客戶庫存水平恢復平衡所做的努力。當時我們有信心，由於我們的基本面具有彈性，我們將在第二季度看到迅速復蘇，並在進入旺季時在第三季度繼續復甦。我很高興地報告，事情的進展符合我們的預期。

As for the broader market, end consumer demand continues to be soft, however, we are optimistic that the worst phase of this cycle is behind us. We anticipate further recovery in our September quarter, which seasonally has been our strongest quarter, driven by fall smartphone launches and back-to-school. While we remain cautious, we expect to navigate the current environment better than the broader market that we serve, thanks to our robust Tier 1 customer partnerships, leading market share, as well as a much more diversified total solutions product portfolio serving a broader set of end markets across consumer, commercial and industrial applications.

就更廣泛的市場而言，終端消費者需求持續疲軟，但我們樂觀地認為本週期最糟糕的階段已經過去。我們預計九月季度將進一步復甦，在秋季智能手機發布和返校的推動下，該季度是我們表現最強勁的季度。儘管我們仍然保持謹慎態度，但由於我們強大的一級客戶合作夥伴關係、領先的市場份額以及服務於更廣泛領域的更加多元化的整體解決方案產品組合，我們預計能夠比我們所服務的更廣泛的市場更好地應對當前的環境。涵蓋消費者、商業和工業應用的終端市場。

In terms of our operations, our near-term focus is on maintaining close collaboration with our customers while gearing up for our peak season to provide the best customer service possible. As we see repeatedly, by ensuring our products remain highly competitive, prioritizing long-term customer relationships, and consistently upholding our commitment to excellence and reputation as a reliable supplier, we become a favored partner of our customers.

就我們的運營而言，我們近期的重點是與客戶保持密切合作，同時為旺季做好準備，以提供盡可能最好的客戶服務。正如我們反复看到的，通過確保我們的產品保持高度競爭力，優先考慮長期客戶關係，並始終堅持我們對卓越的承諾和作為可靠供應商的聲譽，我們成為客戶青睞的合作夥伴。

As a result, they entrust us with more share. This approach has served as a cornerstone of our growth. It has helped us expand our Tier 1 customers across all our end markets, which in turn, creates a positive flywheel and marketing effect that propels us towards achieving our long-term goals.

因此，他們賦予我們更多的份額。這種方法已成為我們成長的基石。它幫助我們將一級客戶擴展到所有終端市場，進而創造了積極的飛輪和營銷效應，推動我們實現長期目標。

With that, let me now cover our segment results and provide some guidance by segment for the next quarter. Starting with Computing. June quarter revenue was down 41.8% year-over-year but up 36.8% sequentially and represented 32.2% of total revenue. These results were driven by a solid recovery in shipments across notebook and desktop computing applications following the sharp correction in the March quarter, which drew down inventories at our key customers.

現在，讓我介紹一下我們的部門業績，並為下一季度按部門提供一些指導。從計算開始。 6 月份季度收入同比下降 41.8%，但環比增長 36.8%，佔總收入的 32.2%。這些結果是由於三月份季度的大幅調整（減少了我們主要客戶的庫存）之後筆記本電腦和桌面計算應用程序的出貨量穩步復甦所推動的。

Looking forward into September, which is our seasonally strongest quarter, we continue to see encouraging recovery and expect further sequential growth in the high teens. Q4

展望 9 月份，這是我們季節性最強的季度，我們將繼續看到令人鼓舞的複蘇，並預計將進一步實現高十幾歲的連續增長。第四季度

Turning to the Consumer segment, June quarter revenue was up 18.8% year-over-year and down 1.9% sequentially and represented 27.1% of total revenue. Our year-over-year growth in this segment was driven by strong shipments into Gaming, E-Scooter and wearable applications. These results reflect our diversified product portfolio.

轉向消費領域，6 月份季度收入同比增長 18.8%，環比下降 1.9%，佔總收入的 27.1%。我們在該領域的同比增長是由遊戲、電動滑板車和可穿戴應用的強勁出貨量推動的。這些結果反映了我們多元化的產品組合。

Over the last couple of years, we strategically focused on these consumer applications, targeting leading customers with our highly competitive low-to-medium voltage products. These initiatives broadened our revenue streams in this segment and enhanced our performance and helped us diversify our more traditional consumer areas such as TVs.

在過去的幾年裡，我們戰略性地專注於這些消費類應用，通過我們極具競爭力的中低壓產品瞄準領先客戶。這些舉措擴大了我們在該領域的收入來源，提高了我們的業績，並幫助我們實現電視等更傳統消費領域的多元化。

For the September quarter, we do anticipate a 30% pull-back in this segment as Gaming begins an inventory correction after an extremely strong 12 months of shipments into the number one console manufacturer.

對於 9 月份的季度，我們確實預計該細分市場將出現 30% 的回調，因為遊戲在向第一大遊戲機製造商出貨量極其強勁的 12 個月之後開始進行庫存調整。

Next, let's discuss the Communications segment, revenue in the June quarter declined 42.4% year-over-year and declined 10.7% sequentially, and represented 10.7% of total revenue. The drop in revenue was primarily attributable to the inventory correction in smartphones and 5G telecom infrastructure. Fortunately, based on conversations with our customers and channel partners, we believe the inventory correction in smartphones is starting to abate, particularly in the premium tiers and we anticipate a solid recovery in the second half of 2023 driven by our U.S. smartphone customer fall launch and further share gains with them. In the September quarter, which is our seasonally strongest quarter, we are expecting over a 70% recovery in revenue sequentially in this segment.

接下來我們來討論一下通信業務，6月份季度的收入同比下降42.4%，環比下降10.7%，佔總收入的10.7%。收入下降主要歸因於智能手機和5G電信基礎設施的庫存調整。幸運的是，根據與我們的客戶和渠道合作夥伴的對話，我們認為智能手機的庫存調整正在開始減弱，特別是在高端市場，我們預計在我們的美國智能手機客戶秋季推出和進一步與他們分享收益。 9 月季度是我們季節性最強的季度，我們預計該細分市場的收入將環比恢復 70% 以上。

Now, let’s talk about our last segment, Power Supply and Industrial, which accounted for 25.7% of total revenue. June quarter revenue was better than our prior expectations, increasing 16.1% year-over-year and 57% sequentially. These results were driven by strong demand for high performance medium voltage MOSFETs used in quick chargers by our Tier 1 U.S. smartphone customer and China’s high-end smartphone OEMs. In addition, we saw stronger demand from other applications such as Solar and Power Tools. For the September quarter, we expect this segment to continue to be solid and be up low-single-digits sequentially.

現在，讓我們談談我們的最後一個細分市場，電源和工業，佔總收入的 25.7%。 6 月份季度收入好於我們之前的預期，同比增長 16.1%，環比增長 57%。這些結果是由我們的美國一級智能手機客戶和中國高端智能手機原始設備製造商對用於快速充電器的高性能中壓 MOSFET 的強勁需求推動的。此外，我們還看到太陽能和電動工具等其他應用的需求更加強勁。對於九月季度，我們預計該細分市場將繼續保持穩定，並連續出現低個位數增長。

In closing, as we stated last quarter, we believe the worst of the inventory correction in PCs and Smartphones has passed and we look forward to a solid second half of 2023. While we remain cautious beyond our near-term visibility, our fundamentals have never been stronger, driven by our leading technology, more diversified product portfolio, Tier 1 customer base in all our business segments, expanding manufacturing capability and supply chain. As such, we are confident we will emerge as an even stronger company on the other side of this cycle.

最後，正如我們上季度所說，我們相信 PC 和智能手機庫存調整最糟糕的時期已經過去，我們期待 2023 年下半年的穩健表現。在我們領先的技術、更多元化的產品組合、所有業務領域的一級客戶群、不斷擴大的製造能力和供應鏈的推動下，我們的實力不斷增強。因此，我們有信心在這個週期的另一端成為一家更強大的公司。

With that, I will now turn the call over to Yifan for a discussion of our fiscal fourth quarter and fiscal year-end financial results and our outlook for the next quarter. Yifan?

現在，我將把電話轉給一帆，討論我們第四財季和財年末的財務業績以及我們對下一季度的展望。一帆？

Thank you, Stephen. Good afternoon, everyone, and thank you for joining us. Revenue for the quarter was $161.5 million, up 21.9% sequentially but down 16.7% year-over-year.

謝謝你，斯蒂芬。大家下午好，感謝您加入我們。該季度收入為 1.615 億美元，環比增長 21.9%，但同比下降 16.7%。

In terms of product mix, DMOS revenue was $95.7 million, up 18.2% sequentially but down 30.8% over last year. Power IC revenue was $58.9 million, up 24.2% from the prior quarter and 9.8% from a year ago. Assembly service revenue was $0.6 million, as compared to $0.6 million last quarter and $2.0 million for the same quarter last year.

從產品結構來看，DMOS營收為9570萬美元，環比增長18.2%，但比去年下降30.8%。電源IC收入為5890萬美元，環比增長24.2%，同比增長9.8%。裝配服務收入為 60 萬美元，上季度為 60 萬美元，去年同期為 200 萬美元。

License and engineering service revenue was $6.3 million for the quarter versus $3.6 million in the prior quarter. Non-GAAP gross margin was 28.5%, compared to 25.1% in the prior quarter and 33.8% a year ago. The quarter-over-quarter increase in non-GAAP gross margin was mainly driven by the mix improvement and higher license and engineering service revenue.

本季度許可和工程服務收入為 630 萬美元，上一季度為 360 萬美元。非 GAAP 毛利率為 28.5%，上一季度為 25.1%，去年同期為 33.8%。非公認會計準則毛利率的環比增長主要是由於產品組合的改善以及許可和工程服務收入的增加。

Non-GAAP operating expenses were $39.1 million, compared to $36.2 million for the prior quarter and $36.7 million last year. The quarter-over-quarter increase was primarily due to higher R&D engineering expenses and last quarter's reversal true-up in variable compensation accruals.

非 GAAP 運營支出為 3,910 萬美元，上一季度為 3,620 萬美元，去年為 3,670 萬美元。環比增長主要是由於研發工程費用增加以及上季度可變薪酬應計費用的逆轉調整。

Non-GAAP tax expense was $0.8 million versus $2.5 million last quarter and $1.2 million in the prior year. The quarter-over-quarter decrease was mainly resulted from higher actual R&D credit and the withholding tax paid last quarter related to the $18 million license fee we received.

非 GAAP 稅費為 80 萬美元，上一季度為 250 萬美元，上年同期為 120 萬美元。環比下降主要是由於實際研發信貸增加以及上季度支付的與我們收到的 1800 萬美元許可費相關的預扣稅。

Non-GAAP quarterly EPS was $0.19, compared to negative $0.21 last quarter and $0.95 a year ago.

非 GAAP 季度每股收益為 0.19 美元，上季度為負 0.21 美元，一年前為負 0.95 美元。

Revenue for fiscal year ended June 30, 2023 was $691.3 million with non-GAAP EPS of $1.86, as compared to revenue of $777.6 million and non-GAAP EPS of $4.56 for the prior fiscal year. The decrease in financial performance was largely due to the industry-wide inventory correction.

截至 2023 年 6 月 30 日的財年收入為 6.913 億美元，非 GAAP 每股收益為 1.86 美元，而上一財年的收入為 7.776 億美元，非 GAAP 每股收益為 4.56 美元。財務業績的下降主要是由於全行業的庫存調整。

Moving on to cash flow. Operating cash flow was negative $28.2 million, which reflected $3.8 million of repayment of customer deposits, an $11.3 million deposit that we made to secure silicon carbide wafer supply, and fluctuation in working capital.

轉向現金流。運營現金流為負 2820 萬美元，這反映了 380 萬美元的客戶押金償還、我們為確保碳化矽晶圓供應而支付的 1130 萬美元押金以及營運資金的波動。

By comparison, operating cash flow in the prior quarter was positive $11.6 million and $25.7 million a year ago. We expect to see a positive operating cash flow for the September quarter. EBITDAS for the quarter was $17.7 million, compared to $6.5 million last quarter and $36.9 million for the same quarter last year.

相比之下，上一季度的運營現金流為正 1,160 萬美元，去年同期為 2,570 萬美元。我們預計九月份季度的運營現金流將為正。本季度的息稅折舊攤銷前利潤 (EBITDAS) 為 1,770 萬美元，而上季度為 650 萬美元，去年同期為 3,690 萬美元。

A couple of other items that impacted our cash balance this quarter worth mentioning are that during the quarter, we repurchased 441,000 shares of our stock for $10.8 million under our previously announced share repurchase program. In addition, we also repaid back $16.3 million of debt under bank loans that matured during the quarter.

值得一提的是，本季度影響我們現金餘額的其他幾個項目是，在本季度，我們根據之前宣布的股票回購計劃，以 1,080 萬美元的價格回購了 441,000 股股票。此外，我們還償還了本季度到期的 1,630 萬美元銀行貸款債務。

Now let me turn to our balance sheet. We completed the June quarter with a cash balance of $195.2 million, compared to $265.9 million at the end of last quarter.

現在讓我談談我們的資產負債表。截至 6 月份季度，我們的現金餘額為 1.952 億美元，而上季度末為 2.659 億美元。

Net trade receivables were $22.4 million, compared to $19.4 million at the end of the prior quarter. Days sales outstanding were 19 days for the quarter versus 30 days for the prior quarter.

應收賬款淨額為 2,240 萬美元，上一季度末為 1,940 萬美元。本季度的應收賬款天數為 19 天，而上一季度為 30 天。

Net inventory was $183.2 million at quarter-end, compared to $179.8 million at the end of the prior quarter and $158 million last year. Average days in inventory were 140 days, compared to 152 days in the prior quarter. We expect average days in inventory continue to improve along with our revenue recovery.

季度末淨庫存為 1.832 億美元，上季度末為 1.798 億美元，去年為 1.58 億美元。平均庫存天數為 140 天，而上一季度為 152 天。我們預計平均庫存天數隨著收入的恢復而繼續改善。

CapEx for the quarter was $19.2 million. We expect CapEx for the September quarter to range from $15 million to $20 million. We expect to complete our Oregon fab expansion in the September quarter.

該季度的資本支出為 1920 萬美元。我們預計 9 月份季度的資本支出將在 1500 萬美元至 2000 萬美元之間。我們預計在九月季度完成俄勒岡州晶圓廠擴建。

Now, I would like to discuss September quarter guidance. We expect revenue to be approximately $180 million, plus or minus $10 million. GAAP gross margin to be 27.2%, plus or minus 1%. We anticipate non-GAAP gross margin to be 28.5%, plus or minus 1%. GAAP operating expenses to be in the range of $48 million, plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $40 million, plus or minus $1 million. Interest expense to be approximately $1.2 million, and income tax expense to be in the range of $0.8 million to $1.2 million.

現在，我想討論九月季度指導。我們預計收入約為 1.8 億美元，上下浮動 1000 萬美元。 GAAP 毛利率為 27.2%，上下浮動 1%。我們預計非 GAAP 毛利率為 28.5%，上下浮動 1%。 GAAP 運營費用在 4800 萬美元上下浮動 100 萬美元左右。非 GAAP 運營費用預計在 4000 萬美元上下浮動 100 萬美元左右。利息費用約為 120 萬美元，所得稅費用在 80 萬至 120 萬美元之間。

With that, we will now open the call for questions. Operator, please start the Q&A session.

現在，我們將開始提問。接線員，請開始問答環節。

(Operator Instructions) Our first question is from David Williams with Benchmark.

（操作員說明）我們的第一個問題來自 Benchmark 的 David Williams。

And congrats on the execution and really solid results here. I also wanted to congratulate you on the logo refresh and web page redesign. It looks really good.

並祝賀這裡的執行和真正可靠的結果。我還想祝賀您的徽標刷新和網頁重新設計。看起來真的很好。

We appreciate it, right.

我們很感激，對吧。

Yes. So it looks like you guys did a really good job on depleting the channel inventories over the last couple of quarters. Do you get a sense that now you're shipping to consumption? Or is there a chance that we're seeing some pull-in for replenishment rather than for sell-through?

是的。所以看起來你們在過去幾個季度在消耗渠道庫存方面做得非常好。您是否有一種感覺，現在您正在運送到消費？或者我們是否有可能看到一些補貨而不是銷售的拉動？

Well, right now, Dave, our channel inventory, right, I mean, right now, after March quarter's correction and June quarter's continued efforts. So now it's more that our channel inventory dollar amount is more in line with our revenue level. So, I mean, right now, it's more we are going with market, I mean, whatever the demand we can see.

好吧，戴夫，我們的渠道庫存，對，我的意思是，現在，經過三月季度的調整和六月季度的持續努力。所以現在我們的渠道庫存金額更符合我們的收入水平。所以，我的意思是，現在我們更多的是順應市場，我的意思是，無論我們能看到什麼需求。

And maybe if you could just talk about the cadence of orders through the quarter and how those progressed? I know some peers have pointed to strong March, April, and May with meaningful decline kind of in June. But I wonder if you're seeing the same dynamics or if you're positioning it maybe just differently and you're not seeing those same impacts?

也許您可以談談本季度的訂單節奏以及進展如何？我知道一些同行指出 3 月、4 月和 5 月表現強勁，但 6 月出現明顯下降。但我想知道您是否看到了相同的動態，或者您的定位是否可能不同，並且您沒有看到相同的影響？

I think we're relatively fairly steady in terms of the revenue throughout the quarter. It's not any kind of hockey stick in any direction. Overall, in general, we do generally see that our business, as we predicted, as inventory correction got better, it would start to come back.

我認為我們整個季度的收入相對相當穩定。它不是任何方向的曲棍球棒。總的來說，總的來說，我們確實普遍看到我們的業務，正如我們預測的那樣，隨著庫存調整的改善，它會開始恢復。

So this is why we see the June number showing that partial recovery. And as we head into September, we expect to see a little bit more recovery there as well, too. So overall, it's largely playing out as we're expecting it to. Certainly, we want to come back stronger, faster, but we are encouraged to see the progress and the return to -- of some of our business that was on hold back in the March quarter.

這就是為什麼我們看到 6 月份的數據顯示部分複蘇。隨著進入 9 月份，我們預計也會看到更多的複蘇。總的來說，它基本上按照我們的預期進行。當然，我們希望變得更強大、更快，但我們很高興看到我們在三月份季度停滯的一些業務的進展和恢復。

And then just one last one, if I can, real quick. You talked about the deposit for -- to supply some stick wafers. Just can you talk maybe about the tracks you're seeing within the silicon carbide market? Where are you seeing the most activity? And how you think about that opportunity over the next few years?

然後，如果可以的話，就快點做最後一件事。您談到了供應一些晶圓棒的押金。您能談談您在碳化矽市場中看到的發展軌跡嗎？您在哪裡看到最多的活動？您如何看待未來幾年的這個機會？

Sure. For us, we're excited about our silicon carbide business, our own business. Yes, we're also excited about the licensing deal. But really, that's kind of the means to help us to really kick start and to expand our own silicon carbide business initiative.

當然。對我們來說，我們對我們的碳化矽業務、我們自己的業務感到興奮。是的，我們也對許可協議感到興奮。但實際上，這是幫助我們真正啟動並擴大我們自己的碳化矽業務計劃的一種方式。

Right now, we're still in relatively early stages of the business portion of it. We've actually been working on the product and the portfolio release and the promotion on it of those products for quite a few years. And we're starting to see some revenue already, but it's still very small to start with. The type of business that we're trying to get into is automotive. This is one of our entry points to really get into the heart of automotive and especially going after the newer EV battery-powered vehicles.

目前，我們仍處於業務部分的相對早期階段。事實上，我們多年來一直致力於產品和產品組合的發布以及這些產品的推廣。我們已經開始看到一些收入，但一開始仍然很小。我們試圖進入的業務類型是汽車。這是我們真正進入汽車核心的切入點之一，特別是追求新型電動汽車。

Our first products are targeted towards on-board charging. And as you can imagine, the design cycles for these types of critical applications are longer. They do take a few years to turn from design into revenue. We're starting to see some revenue now, but it will take some more time to see more significant impact to our business.

我們的第一批產品針對車載充電。正如您可以想像的那樣，這些類型的關鍵應用程序的設計週期更長。他們確實需要幾年的時間才能從設計轉變為收入。我們現在開始看到一些收入，但需要更多時間才能看到對我們業務的更重大影響。

Our next question is from Craig Ellis with B. Riley Securities.

我們的下一個問題來自 B. Riley Securities 的 Craig Ellis。

Yes, thanks for taking the question and congratulations on the execution, guys. I wanted to start off with questions on the fiscal fourth quarter. So, when I look at compute and industrial, we had expected those would be up, but they were both up significantly more than what I would have expected. So, can you just clarify what the driver was for the upside strength in each of those end markets?

是的，謝謝你們提出問題並祝賀執行，伙計們。我想從第四財季的問題開始。因此，當我考慮計算和工業時，我們預計這些會上漲，但它們的漲幅都遠遠超過我的預期。那麼，您能否澄清一下每個終端市場上行力量的驅動因素是什麼？

Sure. Well, let's talk about them in part. So, the computing portion is -- was largely driven by inventory correction. That's where during the peak of the shortage period, several of our customers were very aggressive in getting -- accumulating supply.

當然。好吧，讓我們部分地談談它們。因此，計算部分主要是由庫存調整驅動的。這就是在短缺高峰期，我們的一些客戶非常積極地獲取——積累供應。

So, those are the customers -- those were the customers that had to work through their supply in order to match with the demand that they're currently seeing. So, when we made that adjustment back in the March quarter and going into the June quarter, it played out as we thought, basically. The inventory correction is improving, and we see that because we started to see orders and started to fulfill orders for products that were on hold in the March quarter.

所以，這些是客戶——這些客戶必須通過他們的供應來滿足他們當前看到的需求。因此，當我們在三月季度進行調整併進入六月季度時，結果基本上如我們所想。庫存調整正在改善，我們看到這一點是因為我們開始看到訂單並開始履行三月份季度擱置的產品訂單。

So, certainly, computing, especially in the notebook side, even the motherboard, desktop side, we saw recovery in those markets.

因此，當然，在計算方面，尤其是在筆記本方面，甚至在主板、台式機方面，我們看到了這些市場的複蘇。

The other one you mentioned was…

你提到的另一個是……

And what about industrial, Stephen, yes?

那麼工業呢，斯蒂芬，是嗎？

Industrial, yes. Industrial is a little bit tied to that also, but I think the bigger contribution is actually coming from quick chargers. The smartphone market itself is still rather slow, but in terms of the overall worldwide shipments, but the premium end phones seem to be doing better, and that's where we have more impact to our business.

工業，是的。工業也與此有一點聯繫，但我認為更大的貢獻實際上來自快速充電器。智能手機市場本身仍然相當緩慢，但就全球整體出貨量而言，但高端手機似乎表現更好，這就是我們對業務產生更大影響的地方。

And for us, especially the high-end quick chargers, we started seeing more orders for that coming in fairly strong, especially when compared to the March quarter. So, that's why we saw that bump up in the power supply and industrial.

對於我們來說，尤其是高端快速充電器，我們開始看到更多的訂單相當強勁，特別是與三月份季度相比。因此，這就是我們看到電力供應和工業領域出現增長的原因。

There were also other 2 sub-segments within that sector that also grew in addition to

除了

quick charger, and that's on the power tools as well as on the solar power portion.

快速充電器，既適用於電動工具，也適用於太陽能部分。

So, those also helped a small degree, but the bigger portion is coming from the quick charger side.

因此，這些也有一小部分幫助，但更大的部分來自快速充電器方面。

Stephen, the second question I wanted to ask is related to comments that the company feels like the inventory correction is moving along and we're behind. It seems like in many cases we are, but I wanted to ask the question this way. If we look beyond the fiscal first quarter to the fiscal second quarter, what are some of the gives and takes for growth across the businesses? Because when I look at some of our first quarter color, with consumer off significantly as gaming console orders correct and inventory corrects, couldn't we be at risk for that same thing happening in PCs and smartphones as we move beyond their peak seasons? Can you just talk about the gives and takes there and what it means as you're looking beyond the fiscal first quarter to the fiscal quarter for growth gives and takes?

斯蒂芬，我想問的第二個問題與公司認為庫存調整正在進行而我們落後的評論有關。似乎很多情況下我們都是這樣，但我想這樣問這個問題。如果我們從第一財季到第二財季，我們會發現各企業的增長有哪些優缺點？因為當我看到我們第一季度的一些數據時，隨著遊戲機訂單的正確和庫存的正確，消費者大幅減少，當我們度過旺季時，我們是否會面臨在個人電腦和智能手機上發生同樣情況的風險？您能否談談其中的給予和索取，以及當您從第一財季到財季增長的給予和索取時，這意味著什麼？

Sure. Each specific end application has its own situation. The gaming console, the difference there was that gaming actually never went into correction. It was actually about 4 full quarters and a very strong performance. Just keep in mind that this console maker, remember in the early days when they first released their platform, they had production issues. And because they couldn't source all the parts needed to build their consoles, but once the market slowed down and the supply chain eased up a bit, they quickly were able to catch up production, and that's what they were doing in the last 12 months.

當然。每個具體的最終應用都有自己的情況。遊戲機的不同之處在於，遊戲實際上從未得到糾正。實際上大約有 4 個完整季度，表現非常強勁。請記住，這家遊戲機製造商在他們首次發布平台的早期，他們遇到了生產問題。因為他們無法採購構建遊戲機所需的所有零件，但一旦市場放緩且供應鏈稍微放鬆，他們很快就能趕上生產，這就是他們在過去 12 年所做的事情幾個月。

Going forward, they're about halfway through their whole product cycle for the lifetime of the console. And they never had to do any kind of correction before. And now the -- this is the first time, first quarter that they will have to do some production adjustments. So that's why we see specifically for gaming, their correction came late. We didn't see any correction in the past before until this coming quarter.

展望未來，他們的遊戲機生命週期的整個產品週期已經過半了。而且他們以前從未進行過任何形式的糾正。現在，這是他們在第一季度第一次必須進行一些生產調整。這就是為什麼我們看到專門針對遊戲的他們的修正來得很晚。直到本季度之前，我們過去沒有看到任何調整。

Whereas the other segments, whether it's computing or smartphones, a lot of the inventory correction is already behind us. That happened already starting end of last calendar year, going -- last calendar year and going into the March quarter of this year. So now it's more about the visibility of the market. And we're right in the middle of a phone launch of the major U.S. phone maker. It's also in the middle of a back-to-school time in preparation for the holiday season.

而其他領域，無論是計算機還是智能手機，大部分庫存調整已經過去。這種情況從去年年底開始就已經發生，一直持續到今年三月季度。所以現在更多的是市場的能見度。我們正處於美國主要手機製造商推出手機的過程中。現在也正值返校期間，為假期做準備。

So our eyes are looking now more at the end market with less of an impact from inventory control, at least for the computing and the smartphone markets.

因此，我們現在更多地關注終端市場，庫存控制的影響較小，至少對於計算和智能手機市場而言是這樣。

And so with that being said, Stephen, does that mean since you feel like the business is recovering from inventory correction that the business should actually be up quarter-on-quarter in the December fiscal second quarter? Or would you expect seasonal dynamics to be more at play and for the business overall to be down sequentially in fiscal 2Q?

話雖如此，斯蒂芬，這是否意味著，既然您認為業務正在從庫存調整中恢復，那麼業務實際上應該在 12 月第二財季實現季度環比增長？或者您是否預計季節性因素將發揮更大的作用，並且第二財季的整體業務將連續下降？

It's -- honestly, it's a little bit too early to tell right now. And our visibility is still looking at the next -- current quarter that we're in. And we do need to see again how well the phones are received and how strong the holiday seasons are expected to be.

老實說，現在說還為時過早。我們的能見度仍在關注下一個季度，即我們所處的當前季度。我們確實需要再次看看手機的反響如何以及預計假日季的銷量有多強勁。

So even in a normal year and not in a downturn year, but a normal year, the calendar fourth quarter can go either way. It could be -- could remain strong and go even stronger or start to adjust because, again, March quarter is usually the seasonally low. So seasonality does play a factor, but for the December quarter, it simply just depends on the strength of those key drivers there with back-to-school and with the phone launches.

因此，即使在正常年份，而不是低迷年份，而是正常年份，日曆第四季度也可能會出現任何情況。它可能會保持強勁並變得更加強勁或開始調整，因為三月份季度通常是季節性低點。因此，季節性確實是一個因素，但對於 12 月季度來說，它僅僅取決於返校和手機發布等關鍵驅動因素的實力。

Got it. So we'll keep our eye on demand. That's helpful, Stephen. And then, Yifan, I want to just close out with you. So, great to see the significant gross margin upside in the quarter and it's guided to a high level, but it is flat when revenues are up significantly. So I would have expected a volume benefit to gross margin sequentially. Can you just talk about the gives and takes in gross margin quarter-on-quarter in fiscal 1Q?

知道了。因此，我們將密切關注需求。這很有幫助，斯蒂芬。然後，一凡，我想和你結束。因此，很高興看到本季度毛利率大幅上升，並且被引導至較高水平，但當收入大幅增長時，毛利率則持平。因此，我預計毛利率將依次出現銷量增長。您能談談第一財季毛利率的環比變化嗎？

Sure. For the September quarter's margin right now, you can see those incremental revenue pretty much the mix is in line with the June quarter. And then in terms of utilization, it's kind of largely muted compared to the June quarter, because in June quarter we were ramping up our Oregon fab expansion. So then, you know, overall our production level is expected to be relatively similar at a similar level for the September quarter as compared to the June quarter.

當然。對於目前九月季度的利潤率，您可以看到這些增量收入的組合與六月季度的情況基本一致。然後就利用率而言，與六月季度相比，它在很大程度上是平靜的，因為在六月季度，我們正在加大俄勒岡州晶圓廠的擴張力度。因此，您知道，總體而言，我們 9 月季度的生產水平預計將與 6 月季度的水平相似。

Okay. So does that mean we'd need to see revenues materially above $180 million a quarter before we got that volume and utilization help to gross margin from here, Yifan?

好的。那麼，一帆，這是否意味著我們需要看到每個季度的收入大幅高於 1.8 億美元，才能使銷量和利用率有助於提高毛利率？

Right. I mean, for our Oregon fab, utilization actually in the June quarter was relatively good. I mean, not, you know, it was okay. So the incremental benefit may not be as strong as the revenue recovery indicated.

正確的。我的意思是，對於我們的俄勒岡工廠來說，六月季度的利用率實際上相對較好。我的意思是，不，你知道，沒關係。因此，增量效益可能不會像收入復甦所顯示的那麼強勁。

Our next question is from Kyle Smith with Stifel.

我們的下一個問題來自凱爾·史密斯和斯蒂菲爾。

Kyle Smith on for Tore Svanberg and Jeremy Kwan here at Stifel. Kind of going off that, I had a question on CapEx. So you mentioned last quarter your expectations to see your CapEx gradually decline, and it looks like you're guiding for the September quarter to be roughly similar to the June quarter. So do you have any update here as you think about the rest of the fiscal year?

凱爾·史密斯 (Kyle Smith) 代表 Stifel 的托雷·斯文伯格 (Tore Svanberg) 和傑里米·關 (Jeremy Kwan)。有點像這樣，我有一個關於資本支出的問題。因此，您在上個季度提到您預計資本支出將逐漸下降，而且您預計 9 月季度的預期與 6 月季度大致相似。那麼，當您考慮本財年剩餘時間時，您有什麼最新消息嗎？

I mean, right now for the September quarter, we can see relatively, yeah, $15 million to $20 million level. Yes, maybe a couple of million dollars lower than the June quarter, but it's still in that range. Yeah. I mean, our Oregon fab extension right now is toward the tail end of the payment process.

我的意思是，現在在 9 月份的季度，我們可以看到相對的，是的，1500 萬美元到 2000 萬美元的水平。是的，也許比六月季度低了幾百萬美元，但仍在這個範圍內。是的。我的意思是，我們俄勒岡州晶圓廠的擴建目前正接近付款流程的尾聲。

So going forward, it's more like for the, maintenance and, debottlenecking, I mean, those depending on our product requirements. So right now, I would say overall, we will target, you know, our target model is try to target CapEx within the 6% to 8% of our revenue range, and that's our normal CapEx target.

因此，展望未來，它更像是維護和消除瓶頸，我的意思是，這些取決於我們的產品要求。所以現在，我想說，總的來說，我們的目標是，你知道，我們的目標模型是嘗試將資本支出控制在我們收入範圍的6% 到8% 範圍內，這是我們正常的資本支出目標。

Great.

偉大的。

(Operator Instructions) Our next question is from David Williams with Benchmark.

（操作員說明）我們的下一個問題來自 Benchmark 的 David Williams。

Thanks for letting me ask a question, a follow-up question here. I guess, Yifan, if you kind of think about the mix this quarter, the IC business, Power IT was up quite a bit sequentially. Just wondering how much of the gross margin improvement was from that mix and how you think that mix will flow into the next quarter despite maybe the segment mix?

感謝您讓我提出一個問題，這是一個後續問題。我想，一帆，如果你考慮一下本季度的組合，IC 業務、Power IT 都連續增長了很多。只是想知道這種組合帶來了多少毛利率改善，以及儘管可能存在細分市場組合，但您認為該組合將如何流入下個季度？

Sure. Our Power IT product line generally carries at a higher margin. Yes, in the June quarter, the Power IT revenue recovered relatively compared to the March quarter at a bigger pace. Yes, because back to last year or so, when the supply was constrained, so we optimized our shipment and product mix quite a bit. Those products accumulated more inventory at a different level, at an ODM level, at an OEM level. Then March quarter kind of corrected that quite a bit.

當然。我們的 Power IT 產品線通常具有較高的利潤率。是的，在 6 月季度，Power IT 收入相對於 3 月季度的恢復速度更快。是的，因為回到去年左右，當時供應受到限制，所以我們對我們的發貨和產品組合進行了相當多的優化。這些產品在不同級別（ODM 級別、OEM 級別）積累了更多庫存。然後三月份季度就糾正了這一點。

So in the June quarter, the mix definitely improved along with the revenue recovery. So those -- that would contribute to our gross margin improvement in the June quarter quite a bit.

因此，在六月季度，隨著收入的複蘇，組合肯定有所改善。因此，這些將大大有助於我們六月季度的毛利率改善。

Okay. Understood. Then just one last one. From a geographic perspective, can you talk a little bit about what you're seeing coming out of Asia? Is China better or worse, maybe neutral? There's been some mixed messaging, I think, around that market in terms of whether it's improving or still down. Any color around what you're seeing would be very helpful.

好的。明白了。然後就只有最後一張了。從地理角度來看，您能談談您對亞洲的看法嗎？中國是好是壞，也許是中立？我認為，關於該市場是在改善還是仍在下降，存在一些混雜的信息。你所看到的任何顏色都會非常有幫助。

Sure. Everyone was looking at China as their reopening as a potential kick-start to not only China but maybe to the rest of the world. So far, I think opening up, there is a lot more activity there. If you travel there, it's kind of like what it was before. And but -- I'm not sure, whether its -- I don't think it's actually translated over into retail spending being up. It is up, but I would say that, the expectations were for it to be higher. For AOS ourselves, we do see China, just like all the other regions, also went through a correction in the March quarter. That also came back in the June quarter. So they're part of that recovery. We are counting on China as well as the rest of the Asia region, especially Taiwan and Korea, Japan, also to grow going forward.

當然。每個人都將中國的重新開放視為一個潛在的啟動，不僅對中國，而且可能對世界其他地區。到目前為止，我認為開放後，那裡有更多的活動。如果你去那裡旅行，你會發現那里和以前沒什麼兩樣。但是——我不確定是否——我認為這實際上並沒有轉化為零售支出的增長。它已經上漲了，但我想說的是，人們對它的期望更高。對於 AOS 本身來說，我們確實看到中國與所有其他地區一樣，在三月份季度也經歷了調整。這在六月季度也出現了。所以它們是複甦的一部分。我們指望中國以及亞洲其他地區，特別是台灣和韓國、日本也能繼續發展。

There are no additional questions waiting, so I'll pass the conference back to the management team for any closing remarks.

沒有其他問題等待，因此我會將會議轉回給管理團隊以供結束語。

This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to talking to you again next quarter. Thank you.

我們今天的財報電話會議到此結束。感謝您對 AOS 的關注，我們期待下季度再次與您交談。謝謝。

Thank you.

謝謝。

That concludes today's conference call. Thank you for your participation. You may now disconnect your line.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開線路。