(AOSL) 2024 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, thank you for joining today's Alpha and Omega Semiconductor fiscal Q2 2024 earnings call.

女士們、先生們，下午好，感謝你們參加今天的 Alpha and Omega Semiconductor 2024 年第二季財報電話會議。

My name is Tia, and I will be your moderator for today's call (Operator Instructions) I would now like to pass the call over to your host, Steve Pelayo.

我的名字是 Tia，我將擔任今天電話會議的主持人（操作員說明） 我現在想將電話轉給您的主持人 Steve Pelayo。

Please proceed.

請繼續。

Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal 2024 second quarter financial results.

大家下午好，歡迎參加 Alpha 和 Omega Semiconductor 的電話會議，討論 2024 財年第二季財務業績。

I'm Steven Pelayo, Investor Relations representative for AOS.

我是 Steven Pelayo，AOS 投資人關係代表。

With me today are Stephen Chang, our CEO and Yifan Liang, our CFO.

今天與我在一起的有我們的執行長 Stephen Chang 和我們的財務長梁一凡。

This call is being recorded and broadcast live over the web.

這次通話正在錄製並透過網路直播。

A replay will be available for seven days following the call via the link in the Investor Relations section of our website.

電話會議後 7 天內可透過我們網站投資者關係部分的連結進行重播。

Our call will proceed as follows.

我們的通話將如下進行。

Today, Stephen will begin business updates, including strategic highlights and a detailed segment report.

今天，史蒂芬將開始更新業務，包括策略要點和詳細的分部報告。

After that, Yifan will review the financial results and provide guidance for the March quarter.

此後，一帆將審查財務業績並為三月季度提供指導。

Finally, we will have the Q&A session.

最後，我們將進行問答環節。

The earnings release was distributed over the wire today, February 6, 2024, after the market close.

該財報於今天（2024 年 2 月 6 日）收盤後透過網路發布。

The release is also posted on the company's website.

新聞稿也發佈在該公司的網站上。

Our earnings release and this presentation include non-GAAP financial measures.

我們的收益發布和本簡報包括非公認會計準則財務指標。

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.

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。

A reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release.

我們的收益報告中包含了這些非公認會計準則衡量標準與可比較公認會計準則衡量標準的調整表。

We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the business outlook and financial projections.

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。

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.

這些前瞻性陳述是基於管理階層目前的預期，涉及可能導致我們的實際結果出現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.

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。

We assume no obligation to update the information provided in today's call.

我們沒有義務更新今天電話會議中提供的資訊。

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

現在我將把電話轉給我們的執行長 Stephen Chang。

Stephen?

史蒂芬？

Thank you, Steve.

謝謝你，史蒂夫。

Welcome to Alpha and Omega's fiscal Q2 earnings call.

歡迎參加 Alpha 和 Omega 第二季財報電話會議。

I will begin with a high-level overview of our results, and then I'll jump into segment details.

我將從對我們的結果的高級概述開始，然後我將跳到細分詳細資訊。

We delivered fiscal Q2 results in line with our guidance.

我們交付的第二財季業績符合我們的指引。

Revenue was $165.3 million. Non-GAAP

收入為 1.653 億美元。非公認會計準則

gross margin was 28% and non-GAAP EPS was $0.24. The bottom line finished at the high end of our guidance, primarily driven by overall operational control.

毛利率為 28%，非 GAAP 每股盈餘為 0.24 美元。淨利潤達到了我們指引的高端，主要是由整體營運控制所推動的。

These results were driven by continued recovery across notebooks, desktop computing, and smartphones, offset by ongoing inventory correction in gaming and weak demand for quick chargers and solar.

這些結果是由筆記型電腦、桌上型電腦和智慧型手機的持續復甦所推動的，但被遊戲領域持續的庫存調整以及快速充電器和太陽能需求疲軟所抵消。

Looking back on the full calendar year 2023, it was undeniably a challenging period for our entire industry.

回顧 2023 年全年，無可否認，對我們整個產業來說，這是一個充滿挑戰的時期。

AOS revenue experienced a significant decline of 19% following a record-breaking 2022.

繼 2022 年創紀錄以來，AOS 收入大幅下降 19%。

This drop was primarily due to the inventory correction in PCs and smartphones that commenced in late 2022 and broader macro headwinds.

這一下降主要是由於 2022 年底開始的個人電腦和智慧型手機庫存調整以及更廣泛的宏觀阻力。

In the second half of calendar 2023, our performance was further hampered by inventory corrections and slowdowns in demand across other segments.

2023 年下半年，我們的業績受到庫存調整和其他細分市場需求放緩的進一步影響。

While revenue declined in calendar 2023.

2023 年收入有所下降。

I think it's important to recognize that challenges resulting from the post COVID semiconductor cycle are nearing completion, and we are approaching the recovery phase of the next cycle.

我認為重要的是要認識到後新冠疫情半導體週期帶來的挑戰即將完成，我們正在接近下一個週期的恢復階段。

Over our 23 year history, we have navigated many boom and bust cycles in this industry, emerging each time stronger and more resilient on the other side.

在我們 23 年的歷史中，我們經歷了這個行業的多次繁榮和蕭條週期，每次都在另一方面變得更加強大和更有彈性。

Looking forward, we expect stabilization across most of our business lines, notwithstanding normal seasonality.

展望未來，儘管存在正常的季節性因素，但我們預計大多數業務線都會保持穩定。

While near-term visibility is limited, we remain cautiously optimistic about a broader market rebound in the second half of calendar 2024.

儘管近期能見度有限，但我們對 2024 年下半年更廣泛的市場反彈仍持謹慎樂觀態度。

Fundamentally, we are extremely well positioned for future growth as the market recovers.

從根本上說，隨著市場的復甦，我們為未來的成長做好了充分的準備。

Today, our market position is stronger than ever, supported by our leading technology, more diversified product portfolio and Tier 1 customer base in all of our business segments.

如今，在我們領先的技術、更多元化的產品組合以及所有業務領域的一級客戶群的支持下，我們的市場地位比以往任何時候都更加強大。

More importantly, whether it's a AI accelerators, digitalization, advanced connectivity, electrification or the transition to a low carbon society, power management lies at the core of these trends.

更重要的是，無論是人工智慧加速器、數位化、先進連接、電氣化或向低碳社會的轉型，電源管理都是這些趨勢的核心。

We remain committed to executing our technology roadmap, introducing innovative new products and solutions to our customers and focusing on long-term growth drivers that will allow us to surpass industry growth rates and establish ourselves as a sustained outperformer in the long run.

我們仍然致力於執行我們的技術路線圖，向客戶推出創新的新產品和解決方案，並專注於長期成長動力，這將使我們能夠超越行業成長率，並從長遠來看成為持續領先的企業。

With that, let me now cover our segment results and provide some guidance by segment for the next quarter.

現在，讓我介紹一下我們的部門業績，並為下一季按部門提供一些指導。

Starting with computing, December quarter revenue was up 12.3% year over year and up 2% sequentially and represented 43.4% of total revenue.

從計算業務開始，12 月季度營收年增 12.3%，季增 2%，佔總營收的 43.4%。

These results were ahead of our original expectation for a low single digit decline sequentially and were driven by a continued recovery and stabilization in shipments across notebook and desktop computing applications.

這些結果超出了我們最初預期的連續低個位數下降的預期，並且受到筆記本和台式計算應用出貨量持續復甦和穩定的推動。

The recovery has been driven by high end driver ICs and MOSFETs for powering CPUs.

為 CPU 供電的高階驅動器 IC 和 MOSFET 推動了復甦。

Looking forward into the March quarter, we expect the segment to be down mid-single digits on normal seasonality and the impact of Chinese New Year.

展望三月季度，我們預計由於正常季節性和中國新年的影響，該細分市場將出現中個位數下降。

Notably, the inventory correction in graphics cards is coming to an end and tangential markets such as AI accelerators are becoming a meaningful portion of our data center related business.

值得注意的是，顯示卡的庫存調整即將結束，人工智慧加速器等切向市場正成為我們資料中心相關業務的重要組成部分。

In summary, we are not immune to seasonality and broader market conditions, but solid rebound expected in graphics cards and continued contributions from a AI related products demonstrate the diversity of our computing segment.

總而言之，我們無法免受季節性和更廣泛市場條件的影響，但顯示卡的強勁反彈以及人工智慧相關產品的持續貢獻證明了我們計算領域的多樣性。

Turning to the consumer segment, December quarter revenue was down 50.2% year over year and down 24.4% sequentially and represented 14.2% of total revenue.

轉向消費領域，12 月季度營收年減 50.2%，季減 24.4%，佔總營收的 14.2%。

As we indicated last quarter, gaming is undergoing an inventory correction after extremely strong shipments into the number one console manufacturer between mid-calendar 2022 and mid-calendar 2023.

正如我們上季度所指出的，在 2022 年中期至 2023 年中期期間，遊戲向第一大遊戲機製造商的出貨量極其強勁，之後遊戲行業正在經歷庫存調整。

Similar to what we saw in PCs and smartphones in early calendar 2023.

類似於我們在 2023 年初在個人電腦和智慧型手機中看到的情況。

Given the speed of the current correction, we believe demand will revert back to a new normal in a couple of quarters, factoring in that the console is now in its midlife part of the platform cycle.

考慮到目前調整的速度，我們認為需求將在幾個季度內恢復到新常態，考慮到該遊戲機目前正處於平台週期的中期。

Further, we see opportunities to increase BOM content within the current console platform as part of its refresh this year.

此外，作為今年更新的一部分，我們看到了在目前控制台平台中增加 BOM 內容的機會。

Longer-term, we believe our relationship with this customer is very strong and are already engaged in discussions for the next module design.

從長遠來看，我們相信我們與該客戶的關係非常牢固，並且已經開始討論下一個模組設計。

For the March quarter.

對於三月季度。

We anticipate stabilization in this segment and are forecasting a low single-digit sequential decline.

我們預計該細分市場將趨於穩定，並預期環比將出現低個位數下降。

Next, let's discuss the communications segment.

接下來，我們來討論通訊部分。

Revenue in the December quarter was down 18% year over year and down 6.6% sequentially and represented 17.5% of total revenue.

12 月所在季度的營收年減 18%，季減 6.6%，佔總營收的 17.5%。

Shipments to the Korea and China-based smartphone OEMs were strong.

對韓國和中國智慧型手機原始設備製造商的出貨量強勁。

However, this was more than offset by a pullback in shipments to the Tier 1 US smartphone customers.

然而，美國一級智慧型手機客戶出貨量的下降足以抵銷這一影響。

Note, that customer had strong shipments in the September quarter in 2023 ahead of their fall device launch.

請注意，該客戶在秋季設備推出之前，在 2023 年第 9 季的出貨量強勁。

Looking ahead, due to strong shipments from Chinese OEMs, we anticipate this segment to remain flat sequentially, out-performing seasonality.

展望未來，由於中國原始設備製造商的強勁出貨量，我們預計該細分市場將與上一季持平，表現優於季節性。

Now let's talk about our last segment, power supply and industrial, which accounted for 21.1% of total revenue.

現在讓我們來談談我們最後一個細分市場，電力和工業，它佔總收入的21.1%。

December quarter revenue was down 15.4% year over year and down 16.6% sequentially.

12 月季度營收年減 15.4%，季減 16.6%。

These results were driven by reduced quick charges following our peak season shipments to our Tier 1 US smartphone customer in the September quarter and continued weakness in solar.

這些結果是由於我們在九月季度旺季向美國一級智慧型手機客戶發貨後快速收費減少以及太陽能持續疲軟所推動的。

Power tools were a notable standout in the December quarter, further solidifying their strong growth and contribution throughout calendar 2023.

電動工具在 12 月季度表現突出，進一步鞏固了其在 2023 年全年的強勁成長和貢獻。

For the March quarter, we expect this segment to further decline in the mid-10s sequentially, mainly due to reduced quick chargers following the peak season and lower solar demand.

對於 3 月季度，我們預計該細分市場將在 10 多歲左右進一步下降，這主要是由於旺季後快速充電器的減少和太陽能需求的下降。

While power tools will also see a seasonal decline, we expect strong sequential growth in our e-mobility segment, driven by deepening customer relationships for e-bikes and e-scooters.

雖然電動工具也將出現季節性下降，但我們預計，在電動自行車和電動滑板車客戶關係加深的推動下，我們的電動車領域將出現強勁的連續成長。

In closing, we delivered fiscal Q2 in line with our expectations.

最後，我們第二財季的業績符合我們的預期。

While we are not immune to the macroeconomic headwinds.

雖然我們不能免受宏觀經濟逆風的影響。

There are indications that the cycle has bottomed and we are looking forward to the recovery phase.

有跡象表明周期已經觸底，我們期待著復甦階段。

Therefore, it is important to emphasize that our core fundamentals remain strong, a testament to the strategic investments we have made over the past years.

因此，必須強調的是，我們的核心基本面依然強勁，這證明了我們過去幾年所進行的策略投資。

These investments have positioned us well for growth, and we continue to focus on driving the company towards growth beyond our $1 billion revenue target on the other side of the cycle, supported by our leading technology, more diversified product portfolio, Tier 1 customer base in all of our business segments and expanding manufacturing capability and supply chain.

這些投資為我們的成長奠定了良好的基礎，在我們領先的技術、更多元化的產品組合、一級客戶群的支持下，我們將繼續專注於推動公司成長，超越週期另一端10 億美元的收入目標。我們所有的業務部門以及不斷擴大的製造能力和供應鏈。

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

現在，我將把電話轉給一帆，討論我們第二季的財務表現和下一季的前景。

Yifan?

一帆？

Thank you, Stephen, and good afternoon, everyone, and thank you for joining us.

謝謝斯蒂芬，大家下午好，謝謝您加入我們。

Revenue for the quarter was $165.3 million, down 8.5% sequentially and down 12.4% year over year.

該季度營收為 1.653 億美元，季減 8.5%，年減 12.4%。

In terms of product mix, DMOs revenue was $108.8 million, down 10.5% sequentially and down 20.9% over last year.

從產品結構來看，DMO營收為1.088億美元，較上一季下降10.5%，比去年下降20.9%。

Power IC revenue $50.3 million, down 4.6% from the prior quarter and up 0.6% from a year ago.

電源IC收入為5,030萬美元，季減4.6%，較去年同期成長0.6%。

Assembly service revenue was $0.7 million as compared to $0.7 million last quarter and $1.2 million for the same quarter last year.

組裝服務收入為 70 萬美元，上季為 70 萬美元，去年同期為 120 萬美元。

License and engineering service revenue was $5.5 million for the quarter versus $5.6 million in the prior quarter.

本季授權和工程服務收入為 550 萬美元，上一季為 560 萬美元。

Non-GAAP gross margin was 28% compared to 28.8% in the prior quarter and 29.5% a year ago.

非 GAAP 毛利率為 28%，上一季為 28.8%，去年同期為 29.5%。

A quarter-over-quarter decrease in non-GAAP gross margin was mainly impacted by ASP erosion and increased inventory reserve, partially offset by the improved product mix.

非公認會計原則毛利率環比下降主要受到平均售價下降和庫存儲備增加的影響，但部分被產品組合的改善所抵消。

Non-GAAP operating expenses were $37.9 million compared to $40.8 million for the prior quarter and $32.8 million last year.

非 GAAP 營運費用為 3,790 萬美元，上一季為 4,080 萬美元，去年為 3,280 萬美元。

The quarter-over-quarter decrease was primarily due to lower R&D engineering expenses and more vacation taken during the holidays.

環比下降主要是由於研發工程費用減少以及假期期間休假增加。

Non-GAAP quarterly EPS was $0.24 compared with $0.33 last quarter and $0.67 a year ago.

非 GAAP 季度每股收益為 0.24 美元，上季為 0.33 美元，一年前為 0.67 美元。

Moving on to cash flow.

轉向現金流。

Operating cash flow was negative $23.5 million, including $11 million of repayment of customer deposits, an $11.3 million deposit that we made to secure silicon carbide wafer supply.

營運現金流為負 2,350 萬美元，其中包括償還客戶押金的 1,100 萬美元，其中 1,130 萬美元是我們為確保碳化矽晶圓供應而支付的押金。

By comparison, operating cash flow was $13.8 million in the prior quarter and $0.3 million a year ago.

相較之下，上一季的營運現金流為 1,380 萬美元，去年同期為 30 萬美元。

EBITDA for the quarter was $20.7 million compared to $23.3 million last quarter and $31.8 million for the same quarter last year.

本季 EBITDA 為 2,070 萬美元，上季為 2,330 萬美元，去年同期為 3,180 萬美元。

Now let me turn to our balance sheet.

現在讓我談談我們的資產負債表。

We completed the December quarter with a cash balance of $162.3 million compared to $193.6 million at the end of last quarter.

截至 12 月季度末，我們的現金餘額為 1.623 億美元，而上季末為 1.936 億美元。

Net trade receivables decreased by $2.5 million sequentially.

應收帳款淨額季減 250 萬美元。

Days sales outstanding remained at 18 days for the quarter.

本季應收帳款天數維持在 18 天。

Net inventory increased by $4 million quarter over quarter.

淨庫存季增 400 萬美元。

Average days in inventory were 141 days compared to 129 days in the prior quarter.

平均庫存天數為 141 天，而上一季為 129 天。

CapEx for the quarter was $9.1 million compared to $12.5 million for the prior quarter.

本季資本支出為 910 萬美元，上一季資本支出為 1,250 萬美元。

We expect CapEx for the March quarter to range from $8 million to $12 million.

我們預計 3 月季度的資本支出將在 800 萬美元至 1,200 萬美元之間。

Now I would like to discuss March quarter guidance.

現在我想討論三月季度指引。

We expect revenue to be approximately $150 million, plus or minus $10 million. GAAP

我們預計營收約 1.5 億美元，上下浮動 1,000 萬美元。公認會計原則

gross margin to be 23.5%, plus or minus 1%.

毛利率為23.5%，上下浮動1%。

We anticipate a non-GAAP gross margin to be 25% plus or minus 1%.

我們預期非 GAAP 毛利率為 25% 正負 1%。

A quarter-over-quarter decrease in gross margin mainly reflects the lower factory utilization due to the seasonality and then Lunar New Year holiday.

毛利率環比下降主要反映了季節性因素和農曆新年假期導致工廠利用率降低。

GAAP operating expenses to be in the range of $46.7 million, plus or minus $1 million. Non-GAAP

GAAP 營運費用將在 4,670 萬美元上下浮動 100 萬美元之間。非公認會計準則

operating expenses are expected to be in the range of $39.5 million, plus or minus $1 million.

營運費用預計在 3,950 萬美元上下浮動 100 萬美元左右。

Interest expense to be approximately $1 million and income tax expense to be approximately $1.1 million.

利息費用約 100 萬美元，所得稅費用約 110 萬美元。

With that we'll open the call for questions.

我們將開始提問。

Operator, please start the Q&A session.

接線生，請開始問答環節。

Absolutely.

絕對地。

We will now begin the Q&A session

我們現在開始問答環節

(Operator Instructions)

（操作員說明）

Craig Ellis, B. Riley Securities.

克雷格·艾利斯，B.萊利證券。

Yeah, thanks for taking the question.

是的，感謝您提出問題。

I have one for Stephen and one for Yifan.

我有一張給史蒂芬，一張給一帆。

So Stephen, starting with you.

史蒂芬，從你開始。

Like the color on how you're looking at the year and the fact that you see a cyclical recovery coming at a much stronger second half?

就像您對這一年的看法以及您認為下半年週期性復甦將更加強勁嗎？

Can you just provide some further color on how that could play out on the top line?

您能否提供一些進一步的資訊來說明這將如何影響營收？

I'm not looking for specific guidance, but any sense on how the linearity plays out or what can happen as we look out in each quarter, the third and fourth calendar quarter of the year from, if you expect both of those to be up materially versus first half, would help us see a little bit of the things that you're seeing?

我並不是在尋找具體的指導，而是在尋找關於線性如何發揮作用的任何意義，或者當我們在每個季度（從今年的第三和第四個日曆季度開始）觀察時會發生什麼，如果您預計這兩個季度都會上升與上半場相比，物質上的情況會幫助我們了解一些您所看到的事情嗎？

Sure, thank you, Craig.

當然，謝謝你，克雷格。

Certainly, we are looking forward to the normal seasonality that will come in the September quarter which is the peak season, both for PCs as well as for smartphones and in both of those markets that we are continuing to be well-positioned at our customers.

當然，我們期待九月季度的正常季節性，即個人電腦和智慧型手機的旺季，並且在這兩個市場中，我們將繼續為客戶提供有利的定位。

So comparing first half to second half I think it's generally, we do expect the second half to be stronger compared against the first half.

因此，比較上半場和下半場，我認為總的來說，我們確實預計下半場會比上半場更強。

And the question more of is whether the macroeconomic conditions overall is recovering.

更重要的問題是宏觀經濟狀況是否整體正在復甦。

Right now, we are still relatively it's still in the what we're hoping to be at the tail end of the overall broader revenue correction.

目前，我們仍然處於我們希望的整體收入調整的尾部。

And depending on the macroeconomic conditions, if the market conditions are back to neutral or favorable, then we can expect to see also that the December quarter will also fall along with September.

根據宏觀經濟狀況，如果市場狀況恢復到中性或有利，那麼我們預計 12 月季度也將與 9 月一起下跌。

But right now, we're looking our visibility isn't as clear that far down.

但現在，我們發現遠處的能見度不那麼清晰。

We are now preparing mainly for the September seasonal peak first.

我們現在主要是為九月的季節性高峰做準備。

Got it.

知道了。

Thanks.

謝謝。

And I'll direct the next one to Yifan.

我會把下一篇轉給一帆。

Yifan, I wanted to follow up on the gross margin for the first quarter.

一帆，我想跟進第一季的毛利率。

So the Lunar New Year impact is something that impacts the business every year.

因此，農曆新年的影響每年都會對業務產生影響。

But I thought the impact was closer to 150 to 200 basis points or 100 to 200 rather than the 300.

但我認為影響更接近 150 至 200 個基點或 100 至 200 個基點，而不是 300 個基點。

So can you just detail the factors that are causing gross margin to decrease by 300 basis points sequentially quarter on quarter?

那麼您能否詳細說明導致毛利率季減 300 個基點的因素？

How much is the lower utilization for Lunar New Year and what are the other factors and then beyond that, how would you expect gross margin to recover off of that 25% level, if we have the type of environment that Stephen was talking about, which is much better calendar second half demand?

農曆新年的利用率降低了多少，還有哪些其他因素，除此之外，如果我們有史蒂芬所說的環境類型，那麼您預計毛利率將如何從 25% 的水平恢復過來。日曆下半年需求好得多嗎？

Thank you.

謝謝。

Sure.

當然。

The March quarter gross margin guidance, we factor in a couple of things and primarily that utilization portion to some March quarter typically is our lowest quarter since seasonality wise.

在三月季度的毛利率指引中，我們考慮了一些因素，主要是三月某個季度的使用率部分通常是我們季節性以來最低的季度。

And then we also see some price erosions there to the lesser extent, offset by some better product mix.

然後我們也看到一些較小程度的價格侵蝕，被一些更好的產品組合所抵消。

You are probably right 200, some basis points in that for the utilization portion and then 50 to 100 basis points for net of the ASP erosion and the better part of the mix.

你可能是對的，200，其中利用率部分的一些基點，然後是 ASP 侵蝕淨值和混合的更好部分的 50 到 100 個基點。

So that's a combination of those factors.

這是這些因素的結合。

Thank you.

謝謝。

David Williams, Benchmark.

大衛威廉斯，基準。

Hey, good afternoon.

嘿，下午好。

Thanks for taking my question, certainly appreciated it.

感謝您提出我的問題，非常感謝。

A lot of great color there, but just wondering if maybe you can give us a little color on some of the areas of weakness that you're seeing.

那裡有很多很棒的顏色，但只是想知道您是否可以為我們提供一些您所看到的薄弱環節的顏色。

I know you expanded some in during the call, but just anything I guess, prime to square the recovery in the second half and is that really velocity of orders or maybe just any color there to help us get more comfortable with the second half recovery does materialize.

我知道你在電話會議期間擴大了一些內容，但我想，無論是為了使下半年的復甦平方，還是訂單的真正速度，或者可能只是任何顏色，以幫助我們對下半年的復甦感到更加滿意，確實如此實現。

Thanks.

謝謝。

Sure, David.

當然，大衛。

Yes, for a stronger second half, we're counting on not only on the seasonal factors, but also on the macro picture, and the picture that I was looking at our end markets and many of our end markets have been going through inventory correction the PC. The smartphone started earlier, we're recently on graphics also, gaming went through that as well too.

是的，為了實現更強勁的下半年，我們不僅依靠季節性因素，還依靠宏觀形勢，我正在研究我們的終端市場，我們的許多終端市場一直在經歷庫存調整電腦。智慧型手機起步較早，我們最近也開始關注圖形，遊戲也經歷了這個過程。

We believe that now actually we're at the tail end of that.

我們相信現在我們實際上已經處於尾聲了。

PCs and inventory can control, I think, is tapering down.

我認為個人電腦和庫存可以控制，正在逐漸減少。

It's more of a factor of end demand needs to come back.

這更多是最終需求需要回升的一個因素。

In the story, we need the PC refresh cycles to be healthier and the overall macroeconomic to help raise the consumer spending.

在這個故事中，我們需要個人電腦更新周期更加健康，整體宏觀經濟有助於提高消費者支出。

And we also mentioned on the call that the inventory control for graphics also is starting to come to an end as well and we're starting we anticipate a comeback of that together also with the gaming, which is all which have entered into inventory control about two quarters ago.

我們也在電話中提到，圖形的庫存控制也開始結束，我們開始預期圖形的庫存控制也會與遊戲一起捲土重來，這是所有已進入庫存控制的產品兩個季度前。

And so those are nearing the end of in inventory control and we're looking now more mainly to the end demand once that can pick up that to at least neutral and now we're back to growth and that can point us to a stronger second half.

因此，庫存控制已接近尾聲，我們現在更主要地關注最終需求，一旦最終需求可以回升至至少中性，現在我們又恢復增長，這可以為我們指明第二個更強勁的目標一半。

Great.

偉大的。

Thanks.

謝謝。

And maybe Yifan, if back to the gross margin.

如果回到毛利率的話，也許一帆也是如此。

Maybe trying to give a little more color, maybe what Craig had asked, but can you -- I guess just how much of the impact are you seeing from utilization relative to just the leverage lost on the revenue side?

也許試圖提供更多的色彩，也許是克雷格所問的，但是你能——我猜你看到利用率相對於收入方面損失的槓桿有多大影響？

And maybe what are the puts and takes there as we think about that gross margin longer term and certainly we expect that bottom out a little higher than this.

也許當我們考慮長期毛利率時，看跌期權和看跌期權是多少，當然我們預計底部會比這個高一點。

So just any help there?

那麼有什麼幫助嗎？

Thank you.

謝謝。

Okay, sure.

好吧，當然。

I mean, if you will recall that on March quarter 2023, our gross margin was around 25% range.

我的意思是，如果您還記得 2023 年 3 月季度，我們的毛利率約為 25%。

So now it is a March '24 quarter, even though the top line is a little bit higher than that, a 2023 March quarter, your that you have location right now is about similar to the March quarter 2023 at our factory.

所以現在是 24 年 3 月的季度，儘管頂線比 2023 年 3 月的季度高一點，但您現在的位置與我們工廠 2023 年 3 月的季度大致相似。

In overall, I would expect when our top line recovers and then I would expect on our utilization that would help them and also product mix, I would expect to have come back at a better product mix as well.

總的來說，我預計當我們的營收恢復時，我預計我們的利用率將有助於他們以及產品組合，我預計也會以更好的產品組合回來。

Thanks so much.

非常感謝。

I appreciate the color.

我很欣賞它的顏色。

Thank you.

謝謝。

Tore Svanberg, Stifel.

托雷‧思文凱 (Tore Svanberg)、史蒂菲爾 (Stifel)。

Yes, good afternoon.

是的，下午好。

Maybe if I could just touch on a different aspect of the gross margin question, it looks like inventories were up this quarter and it looks like it's going to be up again.

也許如果我能談談毛利率問題的另一個方面，看起來本季庫存增加了，而且看起來還會再次增加。

Well at these days of inventory are going to be up.

好吧，這些天庫存將會增加。

Can you help us and how we should expect inventories to go over the next couple quarters and how much -- where do you see as a good operating level, in terms of both days and or dollars?

您能幫助我們嗎？我們應該如何預期未來幾季的庫存量以及多少—您認為從天數和/或美元角度來看，良好的營運水準是多少？

Sure, inventory balance at the end of the December quarter increased by $3 million or $4 million.

當然，12 月季度末的庫存餘額增加了 300 萬美元或 400 萬美元。

And then relative to the overall inventory size it's like a marginal.

然後相對於整體庫存規模來說，它就像是一個邊際。

For the March quarter, we would expect an inventory level maintains around a similar level and we already slowed down our own production and also some purchases going forward and I would expect it the inventory that will adjusted based on our expected business growth.

對於三月季度，我們預計庫存水準將維持在類似水準附近，並且我們已經放慢了自己的生產以及未來的一些採購，我預計庫存將根據我們預期的業務成長進行調整。

And so we need some additional production to support that.

因此我們需要一些額外的生產來支持這一點。

Yes, that will ramp up some production depending on the bottleneck areas.

是的，這將根據瓶頸區域提高一些產量。

So that's we manage it on the daily basis.

這就是我們的日常管理。

And also, I guess maybe can you add some more color on the inventory reserve you touched

而且，我想也許你可以在你接觸的庫存儲備上添加一些更多的顏色

.

。

I wasn't sure if I caught how much that was in and without that inventory reserve, where would the inventories have gone?

我不確定我是否知道有多少庫存，如果沒有庫存儲備，庫存會去哪裡？

Yeah, the inventory reserve went up and pile up on a couple of million dollars and also in December quarter.

是的，庫存儲備增加了幾百萬美元，而且在 12 月季度也是如此。

So we took higher reserves.

所以我們採取了更高的儲備。

And is this something that you anticipate needing to do again going forward?

您預計未來需要再做一次嗎？

Or is it kind of a one-and-done and kind of reset from here?

還是這是一勞永逸的、從這裡開始的重置？

Well, that's kind of it depends on the market conditions and then overall environment and yet it's hard to say for inventory increase and generally, I would expect that probably back to the normal, I wouldn't see it additional inventory reserves out there..

嗯，這取決於市場狀況和整體環境，但很難說庫存增加，一般來說，我預計庫存可能會恢復正常，我不會看到額外的庫存儲備。

Got it.

知道了。

And also and I appreciate you provided CapEx guidance for the quarter.

我還感謝您提供本季的資本支出指導。

Can you give us kind of an outlook for the year and you expect it to remain in that $10 million range or can it be taken down a bit on and also the customer deposits both the ones that you are returning back, how much is left and for the silicon wafer deposit, the fee, is this a one-time thing?

您能給我們介紹一下今年的前景嗎？您希望它保持在 1000 萬美元的範圍內，還是可以稍微減少一點，並且客戶還可以存入您要退回的金額，還剩下多少，以及對於矽片押金，費用，這是一次性的事嗎？

Or do you have to secure additional supply down the line?

還是您必須確保後續的額外供應？

Thank you.

謝謝。

Okay.

好的。

Sure.

當然。

Regarding our own CapEx and the again, I [wouldn't] expect throughout this calendar year.

關於我們自己的資本支出和再次，我[不會]期望整個日曆年。

Our CapEx right now is at and what I call maintenance mode.

我們現在的資本支出處於我所謂的維護模式。

We will do our regular upgrade, and that will solve some production bottleneck areas.

我們將進行定期升級，這將解決一些生產瓶頸領域。

And so we don't have a major plan to expand.

因此，我們沒有重大的擴張計劃。

And generally, we target 6% to 8% of our revenue has a CapEx so than I would have expected this year, $10 million-ish per quarter, and that's probably in the ballpark.

一般來說，我們的目標是將收入的 6% 到 8% 進行資本支出，比我今年的預期高，每季 1000 萬美元左右，這可能是在大概範圍內。

In terms of a customer deposits, I would say last year as calendar year 2023, we return about $30 million or so sold.

就客戶存款而言，我想說去年（即 2023 年），我們返還了約 3,000 萬美元左右的銷售金額。

So this calendar year 2024, we expect to retire another $30 million, also a customer deposits, in terms of our own deposit, we made, that's a one-time positive.

因此，在 2024 年，我們預計將再退休 3,000 萬美元，這也是一筆客戶存款，就我們自己的存款而言，我們所做的，這是一次性的利好。

So I would not expect further or well depends on the situation, but at this point, and that's a one-time deposits.

所以我不會期望進一步或很好取決於情況，但在這一點上，這是一次性存款。

Quick follow-up on the deposit that you're returning.

快速跟進您退回的押金。

How much is left after you do that $30 million this year?

今年你賺完這 3000 萬美元後還剩下多少？

At the end of December last year, we had a $60 million of deposits on hand, some kind of a 2024, we'll retire another $30 million also.

去年12月底，我們手上有6,000萬美元的存款，到2024年，我們還將再退休3,000萬美元。

Got it.

知道了。

And one last question, if I could, Stephen, appreciate the guidance that you gave or by end market, if I'm doing the math right?

最後一個問題，史蒂芬，我是否可以感謝您提供的指導或終端市場，如果我計算正確的話？

It looks like licensing and other that kind of goes down to less than 1%, if that's the case, can you help me see where I went were on?

看起來許可證和其他類似的費用下降到不到 1%，如果是這樣的話，你能幫我看看我去了哪裡嗎？

There was someone like a assembly services on this -- a little bit.

有人在這方面提供類似組裝服務的服務──一點點。

So that's probably, yes.

所以這可能是，是的。

Does that the expectations are for that to fluctuate and it's not expected to be like a material contributor that the way to look at it

預期是否會波動，並且預計不會像物質貢獻者那樣看待它

?

？

No, you're right, correct.

不，你是對的，正確的。

I mean somebody service and that will just sit and do some services.

我的意思是有人提供服務，而那個人只會坐下來提供一些服務。

Some for some idle capacity, not a major business for us.

有些是為了一些閒置產能，對我們來說不是主要業務。

Okay.

好的。

Thank you.

謝謝。

I'll jump back in the queue.

我會跳回到隊列中。

Thank you (Operator Instructions) There are no additional questions left at this time.

謝謝（操作員說明） 目前沒有其他問題。

I will hand it back to the management team for closing remarks.

我會將其交還給管理團隊以供結束語。

This concludes our earnings call today.

我們今天的財報電話會議到此結束。

Thank you for your interest in AOS and we look forward to talking to you again next quarter.

感謝您對 AOS 的興趣，我們期待下季再次與您交談。

Thank you.

謝謝。

Thank you.

謝謝。

That concludes today's conference call.

今天的電話會議到此結束。

You may now disconnect your lines.

現在您可以斷開線路。