Bermuda
|
77-0553536
|
(State or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification Number)
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Large accelerated filer
|
☐
|
Accelerated filer
|
☒
|
Non-accelerated filer
|
☐
|
|
|
|
|
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
☒
|
Emerging growth company
|
☐
|
|
|
|
|
|
|
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Shares
|
AOSL
|
The NASDAQ Global Select Market
|
|
|
Page
|
Part I.
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Part II.
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
ALPHA AND OMEGA SEMICONDUCTOR LIMITED
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||||
(Unaudited, in thousands except par value per share)
|
|||||||
|
March 31,
2020 |
|
June 30,
2019 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
110,223
|
|
|
$
|
121,893
|
|
Restricted cash
|
2,325
|
|
|
364
|
|
||
Accounts receivable, net
|
17,470
|
|
|
24,296
|
|
||
Inventories
|
127,395
|
|
|
111,643
|
|
||
Other current assets
|
34,518
|
|
|
37,102
|
|
||
Total current assets
|
291,931
|
|
|
295,298
|
|
||
Property, plant and equipment, net
|
412,318
|
|
|
409,737
|
|
||
Operating lease right-of-use assets, net
|
32,739
|
|
|
—
|
|
||
Intangible assets, net
|
16,798
|
|
|
16,882
|
|
||
Deferred income tax assets
|
4,755
|
|
|
4,822
|
|
||
Restricted cash - long-term
|
1,973
|
|
|
2,038
|
|
||
Other long-term assets
|
6,781
|
|
|
10,617
|
|
||
Total assets
|
$
|
767,295
|
|
|
$
|
739,394
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
87,973
|
|
|
$
|
94,384
|
|
Accrued liabilities
|
50,572
|
|
|
44,075
|
|
||
Income taxes payable
|
419
|
|
|
1,541
|
|
||
Short-term debt
|
32,812
|
|
|
26,609
|
|
||
Finance lease liabilities
|
15,219
|
|
|
11,355
|
|
||
Operating lease liabilities
|
3,839
|
|
|
—
|
|
||
Total current liabilities
|
190,834
|
|
|
177,964
|
|
||
Long-term debt
|
74,205
|
|
|
59,380
|
|
||
Income taxes payable - long-term
|
859
|
|
|
993
|
|
||
Deferred income tax liabilities
|
485
|
|
|
466
|
|
||
Finance lease liabilities - long-term
|
30,579
|
|
|
43,381
|
|
||
Operating lease liabilities - long-term
|
30,248
|
|
|
—
|
|
||
Other long-term liabilities
|
10,356
|
|
|
13,921
|
|
||
Total liabilities
|
337,566
|
|
|
296,105
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
||||
Equity:
|
|
|
|
||||
Preferred shares, par value $0.002 per share:
|
|
|
|
||||
Authorized: 10,000 shares; issued and outstanding: none at March 31, 2020 and June 30, 2019
|
—
|
|
|
—
|
|
||
Common shares, par value $0.002 per share:
|
|
|
|
||||
Authorized: 100,000 shares; issued and outstanding: 31,715 shares and 25,076 shares, respectively at March 31, 2020 and 31,163 shares and 24,517 shares, respectively at June 30, 2019
|
63
|
|
|
62
|
|
||
Treasury shares at cost, 6,639 shares at March 31, 2020 and 6,646 shares at June 30, 2019
|
(66,184
|
)
|
|
(66,240
|
)
|
||
Additional paid-in capital
|
242,470
|
|
|
234,410
|
|
||
Accumulated other comprehensive loss
|
(5,408
|
)
|
|
(2,693
|
)
|
||
Retained earnings
|
118,938
|
|
|
125,485
|
|
Total Alpha and Omega Semiconductor Limited shareholder's equity
|
289,879
|
|
|
291,024
|
|
||
Noncontrolling interest
|
139,850
|
|
|
152,265
|
|
||
Total equity
|
429,729
|
|
|
443,289
|
|
||
Total liabilities and equity
|
$
|
767,295
|
|
|
$
|
739,394
|
|
|
|||||||||||||||
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenue
|
$
|
106,852
|
|
|
$
|
109,067
|
|
|
$
|
342,514
|
|
|
$
|
339,064
|
|
Cost of goods sold
|
84,393
|
|
|
83,438
|
|
|
268,717
|
|
|
251,322
|
|
||||
Gross profit
|
22,459
|
|
|
25,629
|
|
|
73,797
|
|
|
87,742
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Research and development
|
13,569
|
|
|
11,417
|
|
|
38,084
|
|
|
35,401
|
|
||||
Selling, general and administrative
|
16,909
|
|
|
17,947
|
|
|
47,723
|
|
|
58,403
|
|
||||
Impairment of privately-held investment
|
600
|
|
|
—
|
|
|
600
|
|
|
—
|
|
||||
Total operating expenses
|
31,078
|
|
|
29,364
|
|
|
86,407
|
|
|
93,804
|
|
||||
Operating loss
|
(8,619
|
)
|
|
(3,735
|
)
|
|
(12,610
|
)
|
|
(6,062
|
)
|
||||
Interest expense and other income (loss), net
|
(2,282
|
)
|
|
(1,595
|
)
|
|
(3,744
|
)
|
|
(4,455
|
)
|
||||
Loss before income taxes
|
(10,901
|
)
|
|
(5,330
|
)
|
|
(16,354
|
)
|
|
(10,517
|
)
|
||||
Income tax expense (benefit)
|
(1,015
|
)
|
|
625
|
|
|
(37
|
)
|
|
1,886
|
|
||||
Net loss including noncontrolling interest
|
(9,886
|
)
|
|
(5,955
|
)
|
|
(16,317
|
)
|
|
(12,403
|
)
|
||||
Net loss attributable to noncontrolling interest
|
(3,391
|
)
|
|
(4,400
|
)
|
|
(9,826
|
)
|
|
(11,719
|
)
|
||||
Net loss attributable to Alpha and Omega Semiconductor Limited
|
$
|
(6,495
|
)
|
|
$
|
(1,555
|
)
|
|
$
|
(6,491
|
)
|
|
$
|
(684
|
)
|
Net loss per common share attributable to Alpha and Omega Semiconductor Limited
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.26
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.03
|
)
|
Diluted
|
$
|
(0.26
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.03
|
)
|
Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net loss per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
24,894
|
|
|
24,084
|
|
|
24,711
|
|
|
23,938
|
|
||||
Diluted
|
24,894
|
|
|
24,084
|
|
|
24,711
|
|
|
23,938
|
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net loss including noncontrolling interest
|
$
|
(9,886
|
)
|
|
$
|
(5,955
|
)
|
|
$
|
(16,317
|
)
|
|
$
|
(12,403
|
)
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
(2,208
|
)
|
|
4,495
|
|
|
(5,304
|
)
|
|
(1,800
|
)
|
||||
Comprehensive loss
|
(12,094
|
)
|
|
(1,460
|
)
|
|
(21,621
|
)
|
|
(14,203
|
)
|
||||
Noncontrolling interest
|
(4,430
|
)
|
|
(2,184
|
)
|
|
(12,415
|
)
|
|
(12,516
|
)
|
||||
Comprehensive income (loss) attributable to Alpha and Omega Semiconductor Limited
|
$
|
(7,664
|
)
|
|
$
|
724
|
|
|
$
|
(9,206
|
)
|
|
$
|
(1,687
|
)
|
|
|
Common Shares
|
|
Treasury Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Other Comprehensive Loss
|
|
Retained Earnings
|
|
Total AOS Shareholders' Equity
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||||
Balance, December 31, 2019
|
|
$
|
63
|
|
|
$
|
(66,227
|
)
|
|
$
|
240,797
|
|
|
$
|
(4,239
|
)
|
|
$
|
125,476
|
|
|
$
|
295,870
|
|
|
$
|
144,280
|
|
|
$
|
440,150
|
|
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units
|
|
—
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Withholding tax on restricted stock units
|
|
—
|
|
|
—
|
|
|
(1,203
|
)
|
|
—
|
|
|
—
|
|
|
(1,203
|
)
|
|
—
|
|
|
(1,203
|
)
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
2,876
|
|
|
—
|
|
|
—
|
|
|
2,876
|
|
|
—
|
|
|
2,876
|
|
||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,495
|
)
|
|
(6,495
|
)
|
|
(3,391
|
)
|
|
(9,886
|
)
|
||||||||
Cumulative translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,169
|
)
|
|
—
|
|
|
(1,169
|
)
|
|
(1,039
|
)
|
|
(2,208
|
)
|
||||||||
Balance, March 31, 2020
|
|
$
|
63
|
|
|
$
|
(66,184
|
)
|
|
$
|
242,470
|
|
|
$
|
(5,408
|
)
|
|
$
|
118,938
|
|
|
$
|
289,879
|
|
|
$
|
139,850
|
|
|
$
|
429,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Common Shares
|
|
Treasury Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Other Comprehensive Loss
|
|
Retained Earnings
|
|
Total AOS Shareholders' Equity
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||||
Balance, June 30, 2019
|
|
$
|
62
|
|
|
$
|
(66,240
|
)
|
|
$
|
234,410
|
|
|
$
|
(2,693
|
)
|
|
$
|
125,485
|
|
|
$
|
291,024
|
|
|
$
|
152,265
|
|
|
$
|
443,289
|
|
Exercise of common stock options and release of RSUs
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
||||||||
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units
|
|
—
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Withholding tax on restricted stock units
|
|
—
|
|
|
—
|
|
|
(1,398
|
)
|
|
—
|
|
|
—
|
|
|
(1,398
|
)
|
|
—
|
|
|
(1,398
|
)
|
||||||||
Issuance of shares under ESPP
|
|
1
|
|
|
—
|
|
|
1,700
|
|
|
—
|
|
|
—
|
|
|
1,701
|
|
|
—
|
|
|
1,701
|
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
7,732
|
|
|
—
|
|
|
—
|
|
|
7,732
|
|
|
—
|
|
|
7,732
|
|
||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,491
|
)
|
|
(6,491
|
)
|
|
(9,826
|
)
|
|
(16,317
|
)
|
||||||||
Cumulative translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,715
|
)
|
|
—
|
|
|
(2,715
|
)
|
|
(2,589
|
)
|
|
(5,304
|
)
|
||||||||
Balance, March 31, 2020
|
|
$
|
63
|
|
|
$
|
(66,184
|
)
|
|
$
|
242,470
|
|
|
$
|
(5,408
|
)
|
|
$
|
118,938
|
|
|
$
|
289,879
|
|
|
$
|
139,850
|
|
|
$
|
429,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
|
|
Treasury Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Retained Earnings
|
|
Total AOS Shareholders' Equity
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||||
Balance, December 31, 2018
|
|
$
|
61
|
|
|
$
|
(66,283
|
)
|
|
$
|
227,818
|
|
|
$
|
(2,842
|
)
|
|
$
|
124,538
|
|
|
$
|
283,292
|
|
|
$
|
161,236
|
|
|
$
|
444,528
|
|
Exercise of common stock options and release of RSUs
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Reissuance of treasury stock upon exercise of common stock options and release of RSUs
|
|
—
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Withholding tax on restricted stock units
|
|
—
|
|
|
—
|
|
|
(1,743
|
)
|
|
—
|
|
|
—
|
|
|
(1,743
|
)
|
|
—
|
|
|
(1,743
|
)
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
4,160
|
|
|
—
|
|
|
—
|
|
|
4,160
|
|
|
—
|
|
|
4,160
|
|
||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,555
|
)
|
|
(1,555
|
)
|
|
(4,400
|
)
|
|
(5,955
|
)
|
||||||||
Cumulative translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,279
|
|
|
—
|
|
|
2,279
|
|
|
2,216
|
|
|
4,495
|
|
||||||||
Balance, March 31, 2019
|
|
$
|
62
|
|
|
$
|
(66,240
|
)
|
|
$
|
230,234
|
|
|
$
|
(563
|
)
|
|
$
|
122,940
|
|
|
$
|
286,433
|
|
|
$
|
159,052
|
|
|
$
|
445,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Common Shares
|
|
Treasury Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Retained Earnings
|
|
Total AOS Shareholders' Equity
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||||
Balance, June 30, 2018
|
|
$
|
61
|
|
|
$
|
(64,790
|
)
|
|
$
|
220,244
|
|
|
$
|
440
|
|
|
$
|
122,639
|
|
|
$
|
278,594
|
|
|
$
|
147,568
|
|
|
$
|
426,162
|
|
Exercise of common stock options and release of restricted stock units
|
|
1
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|
—
|
|
|
110
|
|
||||||||
Reissuance of treasury stock upon exercise of common stock options and release of restricted stock units
|
|
—
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Withholding tax on restricted stock units
|
|
—
|
|
|
—
|
|
|
(1,946
|
)
|
|
—
|
|
|
—
|
|
|
(1,946
|
)
|
|
—
|
|
|
(1,946
|
)
|
||||||||
Issuance of shares under ESPP
|
|
—
|
|
|
—
|
|
|
1,168
|
|
|
—
|
|
|
—
|
|
|
1,168
|
|
|
—
|
|
|
1,168
|
|
||||||||
Repurchase of common shares under shares repurchase program
|
|
—
|
|
|
(1,501
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,501
|
)
|
|
—
|
|
|
(1,501
|
)
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
10,659
|
|
|
—
|
|
|
—
|
|
|
10,659
|
|
|
—
|
|
|
10,659
|
|
||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(684
|
)
|
|
(684
|
)
|
|
(11,719
|
)
|
|
(12,403
|
)
|
||||||||
Impact on retained earnings related to ASC 606 adoption
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,036
|
|
|
1,036
|
|
|
—
|
|
|
1,036
|
|
||||||||
Cumulative translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,003
|
)
|
|
—
|
|
|
(1,003
|
)
|
|
(797
|
)
|
|
(1,800
|
)
|
||||||||
Contributions from noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,000
|
|
|
24,000
|
|
||||||||
Balance, March 31, 2019
|
|
$
|
62
|
|
|
$
|
(66,240
|
)
|
|
$
|
230,234
|
|
|
$
|
(563
|
)
|
|
$
|
122,940
|
|
|
$
|
286,433
|
|
|
$
|
159,052
|
|
|
$
|
445,485
|
|
|
Nine Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net loss including noncontrolling interest
|
$
|
(16,317
|
)
|
|
$
|
(12,403
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
33,538
|
|
|
24,159
|
|
||
Share-based compensation expense
|
7,732
|
|
|
10,659
|
|
||
Deferred income taxes, net
|
85
|
|
|
252
|
|
||
Gain on disposal of property and equipment
|
(206
|
)
|
|
(8
|
)
|
||
Impairment of privately-held investment
|
600
|
|
|
—
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
6,826
|
|
|
5,122
|
|
||
Inventories
|
(14,660
|
)
|
|
(17,748
|
)
|
||
Other current and long-term assets
|
2,715
|
|
|
(2,399
|
)
|
||
Accounts payable
|
(3,366
|
)
|
|
6,039
|
|
||
Income taxes payable
|
(1,256
|
)
|
|
(245
|
)
|
||
Accrued and other liabilities
|
6,332
|
|
|
9,728
|
|
||
Net cash provided by operating activities
|
22,023
|
|
|
23,156
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchases of property and equipment excluding JV Company
|
(33,417
|
)
|
|
(31,402
|
)
|
||
Purchases of property and equipment in JV Company
|
(15,787
|
)
|
|
(58,509
|
)
|
||
Purchase of intangible assets
|
—
|
|
|
(405
|
)
|
||
Proceeds from sale of property and equipment
|
295
|
|
|
21
|
|
||
Government grant related to equipment in JV Company
|
1,254
|
|
|
—
|
|
||
Net cash used in investing activities
|
(47,655
|
)
|
|
(90,295
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Proceeds from investment by noncontrolling interest
|
—
|
|
|
24,000
|
|
||
Withholding tax on restricted stock units
|
(1,398
|
)
|
|
(1,946
|
)
|
||
Proceeds from exercise of stock options and ESPP
|
1,727
|
|
|
1,278
|
|
||
Payment for repurchases of common shares
|
—
|
|
|
(1,501
|
)
|
||
Proceeds from borrowings
|
49,146
|
|
|
67,479
|
|
||
Repayments of borrowings
|
(25,768
|
)
|
|
(9,393
|
)
|
||
Principal payments on finance leases
|
(7,213
|
)
|
|
(2,440
|
)
|
||
Net cash provided by financing activities
|
16,494
|
|
|
77,477
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(636
|
)
|
|
(573
|
)
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(9,774
|
)
|
|
9,765
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
124,295
|
|
|
131,724
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
114,521
|
|
|
$
|
141,489
|
|
|
|
|
|
||||
Supplemental disclosures of non-cash investing and financing information:
|
|
|
|
||||
Property and equipment purchased but not yet paid (fiscal year 2019 amount is presented as revised, see Note 1)
|
$
|
15,911
|
|
|
$
|
32,738
|
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in thousands, except per share data)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to Alpha and Omega Semiconductor Limited
|
$
|
(6,495
|
)
|
|
$
|
(1,555
|
)
|
|
$
|
(6,491
|
)
|
|
$
|
(684
|
)
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares used to compute basic net loss per share
|
24,894
|
|
|
24,084
|
|
|
24,711
|
|
|
23,938
|
|
||||
Diluted:
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares used to compute basic net loss per share
|
24,894
|
|
|
24,084
|
|
|
24,711
|
|
|
23,938
|
|
||||
Effect of potentially dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock options, RSUs and ESPP shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average number of common shares used to compute diluted net loss per share
|
24,894
|
|
|
24,084
|
|
|
24,711
|
|
|
23,938
|
|
||||
Net loss per share attributable to Alpha and Omega Semiconductor Limited:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.26
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.03
|
)
|
Diluted
|
$
|
(0.26
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.03
|
)
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
(in thousands)
|
|
(in thousands)
|
||||||||
Employee stock options and RSUs
|
2,038
|
|
|
2,225
|
|
|
2,043
|
|
|
2,220
|
|
ESPP
|
627
|
|
|
891
|
|
|
782
|
|
|
988
|
|
Total potential dilutive securities
|
2,665
|
|
|
3,116
|
|
|
2,825
|
|
|
3,208
|
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||
Percentage of revenue
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
Customer A
|
27.5
|
%
|
|
26.8
|
%
|
|
29.2
|
%
|
|
28.4
|
%
|
Customer B
|
36.4
|
%
|
|
36.2
|
%
|
|
36.2
|
%
|
|
37.3
|
%
|
|
March 31,
2020 |
|
June 30,
2019 |
||
Percentage of accounts receivable
|
|
||||
Customer A
|
*
|
|
|
12.1
|
%
|
Customer B
|
22.3
|
%
|
|
19.7
|
%
|
Customer C
|
22.3
|
%
|
|
18.1
|
%
|
Customer D
|
*
|
|
|
13.3
|
%
|
|
March 31,
2020 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
Accounts receivable
|
$
|
50,014
|
|
|
$
|
48,401
|
|
Less: Allowance for price adjustments
|
(32,514
|
)
|
|
(24,075
|
)
|
||
Less: Allowance for doubtful accounts
|
(30
|
)
|
|
(30
|
)
|
||
Accounts receivable, net
|
$
|
17,470
|
|
|
$
|
24,296
|
|
|
March 31,
2020 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
Raw materials
|
$
|
56,750
|
|
|
$
|
59,076
|
|
Work in-process
|
55,606
|
|
|
38,214
|
|
||
Finished goods
|
15,039
|
|
|
14,353
|
|
||
|
$
|
127,395
|
|
|
$
|
111,643
|
|
|
March 31,
2020 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
VAT receivable
|
$
|
27,165
|
|
|
$
|
30,769
|
|
Other prepaid expenses
|
1,958
|
|
|
2,745
|
|
||
Prepaid insurance
|
900
|
|
|
939
|
|
||
Prepaid maintenance
|
593
|
|
|
481
|
|
||
Prepayment to supplier
|
769
|
|
|
583
|
|
||
Prepaid income tax
|
1,140
|
|
|
267
|
|
||
Customs deposit
|
162
|
|
|
114
|
|
||
Lease financing cost
|
—
|
|
|
825
|
|
||
Interest receivable
|
1,339
|
|
|
379
|
|
||
Payroll tax receivable
|
492
|
|
|
—
|
|
||
|
$
|
34,518
|
|
|
$
|
37,102
|
|
|
March 31,
2020 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
Land
|
$
|
4,877
|
|
|
$
|
4,877
|
|
Building
|
58,640
|
|
|
36,205
|
|
||
Manufacturing machinery and facility equipment
|
440,823
|
|
|
303,750
|
|
||
Equipment and tooling
|
25,211
|
|
|
20,739
|
|
||
Computer equipment and software
|
38,651
|
|
|
34,048
|
|
||
Office furniture and equipment
|
3,368
|
|
|
3,243
|
|
||
Leasehold improvements
|
68,015
|
|
|
53,597
|
|
||
Land use rights
|
8,480
|
|
|
8,760
|
|
||
|
648,065
|
|
|
465,219
|
|
||
Less: accumulated depreciation
|
(280,269
|
)
|
|
(252,982
|
)
|
||
|
367,796
|
|
|
212,237
|
|
||
Equipment and construction in progress
|
44,522
|
|
|
197,500
|
|
||
Property, plant and equipment, net
|
$
|
412,318
|
|
|
$
|
409,737
|
|
|
March 31,
2020 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
Patents and technology rights
|
$
|
18,037
|
|
|
$
|
18,037
|
|
Trade name
|
268
|
|
|
268
|
|
||
Customer relationships
|
1,150
|
|
|
1,150
|
|
||
|
19,455
|
|
|
19,455
|
|
||
Less: accumulated amortization
|
(2,926
|
)
|
|
(2,842
|
)
|
||
|
16,529
|
|
|
16,613
|
|
||
Goodwill
|
269
|
|
|
269
|
|
||
Intangible assets, net
|
$
|
16,798
|
|
|
$
|
16,882
|
|
Year ending June 30,
|
|
||
2020 (Remaining)
|
$
|
28
|
|
2021
|
2,548
|
|
|
2022
|
3,360
|
|
|
2023
|
3,286
|
|
|
2024
|
3,249
|
|
|
Thereafter
|
4,058
|
|
|
|
$
|
16,529
|
|
|
March 31,
2020 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
Prepayments for property and equipment
|
$
|
3,747
|
|
|
$
|
4,846
|
|
Investment in a privately held company
|
100
|
|
|
700
|
|
||
Lease financing costs
|
—
|
|
|
1,758
|
|
||
Customs deposit
|
886
|
|
|
980
|
|
||
Other long-term deposits
|
839
|
|
|
889
|
|
||
Office leases deposits
|
1,039
|
|
|
1,031
|
|
||
Other
|
170
|
|
|
413
|
|
||
|
$
|
6,781
|
|
|
$
|
10,617
|
|
|
March 31,
2020 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
Accrued compensation and benefits
|
$
|
16,772
|
|
|
$
|
16,385
|
|
Warranty accrual
|
672
|
|
|
623
|
|
||
Stock rotation accrual
|
3,307
|
|
|
1,921
|
|
||
Accrued professional fees
|
5,261
|
|
|
1,721
|
|
||
Accrued inventory
|
487
|
|
|
857
|
|
||
Accrued facilities related expenses
|
1,995
|
|
|
4,233
|
|
||
Accrued financing lease costs
|
705
|
|
|
728
|
|
||
Accrued property, plant and equipment
|
9,745
|
|
|
11,527
|
|
||
ESPP payable
|
1,913
|
|
|
585
|
|
||
Customer deposit
|
2,556
|
|
|
351
|
|
||
Other accrued expenses
|
7,159
|
|
|
5,144
|
|
||
|
$
|
50,572
|
|
|
$
|
44,075
|
|
|
Nine Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Beginning balance
|
$
|
623
|
|
|
$
|
535
|
|
Additions
|
852
|
|
|
189
|
|
||
Utilization
|
(803
|
)
|
|
(69
|
)
|
||
Ending balance
|
$
|
672
|
|
|
$
|
655
|
|
|
Nine Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Beginning balance
|
$
|
1,921
|
|
|
$
|
1,750
|
|
Additions
|
7,413
|
|
|
3,589
|
|
||
Utilization
|
(6,027
|
)
|
|
(3,616
|
)
|
||
Ending balance
|
$
|
3,307
|
|
|
$
|
1,723
|
|
|
March 31,
2020 |
|
June 30,
2019 |
|
||||
|
(in thousands)
|
|
||||||
Customer deposits
|
$
|
8,000
|
|
*
|
$
|
10,000
|
|
*
|
Computer software liabilities
|
2,356
|
|
|
3,701
|
|
|
||
Other
|
—
|
|
|
220
|
|
|
||
Other long-term liabilities
|
$
|
10,356
|
|
|
$
|
13,921
|
|
|
Year ending June 30,
|
|
|
|
||||
2020 (Remaining)
|
|
|
$
|
9,648
|
|
||
2021
|
|
|
28,641
|
|
|||
2022
|
|
|
20,022
|
|
|||
2023
|
|
|
28,511
|
|
|||
2024
|
|
|
12,082
|
|
|||
Thereafter
|
|
|
8,881
|
|
|||
Total principal of debts
|
|
|
107,785
|
|
|||
Less: debt issuance costs
|
|
|
(768
|
)
|
|||
Total principal of debt, less debt issuance costs
|
|
|
$
|
107,017
|
|
||
|
|
|
|
||||
|
Short-term Debt
|
|
Long-term Debt
|
||||
Principal amount
|
$
|
33,099
|
|
|
$
|
74,686
|
|
Less: debt issuance costs
|
(287
|
)
|
|
(481
|
)
|
||
Total debt, less debt issuance costs
|
$
|
32,812
|
|
|
$
|
74,205
|
|
|
|
Nine Months Ended March 31, 2020
|
||
Operating Leases:
|
|
|
||
Fixed rent expense
|
|
$
|
4,480
|
|
Variable rent expense
|
|
623
|
|
|
Finance Lease:
|
|
|
||
Amortization of equipment
|
|
2,304
|
|
|
Interest
|
|
2,142
|
|
|
Short-term leases
|
|
|
||
Short-term lease expenses
|
|
224
|
|
|
Total lease expenses
|
|
$
|
9,773
|
|
|
|
March 31, 2020
|
||
Operating Leases:
|
|
|
||
ROU assets associated with operating leases
|
|
$
|
32,739
|
|
Finance Lease:
|
|
|
||
Property, plant and equipment, gross
|
|
$
|
104,109
|
|
Accumulated depreciation
|
|
(85,967
|
)
|
|
Property, plant and equipment, net
|
|
$
|
18,142
|
|
|
|
|
||
Weighted average remaining lease term (in years)
|
|
|
||
Operating leases
|
|
9.99
|
|
|
Finance lease
|
|
2.97
|
|
|
|
|
|
||
Weighted average discount rate
|
|
|
||
Operating leases
|
|
4.48
|
%
|
|
Finance lease
|
|
5.46
|
%
|
|
Operating Leases
|
|
Finance Leases
|
||||
The remainder of 2020
|
$
|
1,339
|
|
|
$
|
4,444
|
|
2021
|
5,090
|
|
|
17,229
|
|
||
2022
|
4,624
|
|
|
16,386
|
|
||
2023
|
4,315
|
|
|
11,877
|
|
||
2024
|
3,934
|
|
|
—
|
|
||
2025
|
3,514
|
|
|
—
|
|
||
Thereafter
|
20,663
|
|
|
—
|
|
||
Total minimum lease payments
|
43,479
|
|
|
49,936
|
|
||
Less amount representing interest
|
(9,392
|
)
|
|
(4,138
|
)
|
||
Total lease liabilities
|
$
|
34,087
|
|
|
$
|
45,798
|
|
Year ending June 30,
|
Operating Leases
|
|
Finance Leases
|
||||
2020
|
$
|
4,357
|
|
|
$
|
14,219
|
|
2021
|
1,741
|
|
|
17,799
|
|
||
2022
|
1,164
|
|
|
16,928
|
|
||
2023
|
894
|
|
|
12,269
|
|
||
2024
|
1,002
|
|
|
—
|
|
||
Thereafter
|
149
|
|
|
—
|
|
||
Total minimum lease payments
|
9,307
|
|
|
61,215
|
|
||
Less amount representing interest
|
—
|
|
|
(6,479
|
)
|
||
Total lease liabilities
|
$
|
9,307
|
|
|
$
|
54,736
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2019
|
||||||||||||||||||||
|
Amounts as reported
|
|
Adjustments
|
|
Amounts as corrected
|
|
Amounts as reported
|
|
Adjustments
|
|
Amounts as corrected
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating lease right-of-use assets
|
$
|
19,362
|
|
|
$
|
16,009
|
|
|
$
|
35,371
|
|
|
$
|
18,667
|
|
|
$
|
15,709
|
|
|
$
|
34,376
|
|
Total assets
|
$
|
749,912
|
|
|
$
|
16,009
|
|
|
$
|
765,921
|
|
|
$
|
763,140
|
|
|
$
|
15,709
|
|
|
$
|
778,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating lease liabilities - Short-term
|
$
|
3,767
|
|
|
$
|
620
|
|
|
$
|
4,387
|
|
|
$
|
3,282
|
|
|
$
|
858
|
|
|
$
|
4,140
|
|
Total current liabilities
|
$
|
189,451
|
|
|
$
|
620
|
|
|
$
|
190,071
|
|
|
$
|
184,151
|
|
|
$
|
858
|
|
|
$
|
185,009
|
|
Operating lease liabilities - Long-term
|
$
|
15,815
|
|
|
$
|
16,054
|
|
|
$
|
31,869
|
|
|
$
|
15,559
|
|
|
$
|
15,778
|
|
|
$
|
31,337
|
|
Total liabilities
|
$
|
312,359
|
|
|
$
|
16,054
|
|
|
$
|
328,413
|
|
|
$
|
322,990
|
|
|
$
|
15,778
|
|
|
$
|
338,768
|
|
|
Number of Restricted Stock
Units
|
|
Weighted Average
Grant Date Fair
Value Per Share
|
|
Weighted Average
Remaining
Contractual
Term (Years)
|
|
Aggregate Intrinsic Value
|
|||||
Nonvested at June 30, 2019
|
906,341
|
|
|
$
|
14.09
|
|
|
1.62
|
|
$
|
8,465,225
|
|
Granted
|
483,947
|
|
|
$
|
8.41
|
|
|
|
|
|
||
Vested
|
(416,415
|
)
|
|
$
|
13.60
|
|
|
|
|
|
||
Forfeited
|
(21,125
|
)
|
|
$
|
13.61
|
|
|
|
|
|
||
Nonvested at March 31, 2020
|
952,748
|
|
|
$
|
11.42
|
|
|
1.85
|
|
$
|
6,107,115
|
|
|
Number of Performance-based Restricted Stock
Units
|
|
Weighted Average
Grant Date Fair
Value Per Share
|
|
Weighted Average
Remaining
Contractual Term
(Years)
|
|
Aggregate Intrinsic Value
|
|||||
Nonvested at June 30, 2019
|
596,724
|
|
|
$
|
13.95
|
|
|
1.88
|
|
$
|
5,573,402
|
|
Granted
|
155,000
|
|
|
$
|
7.36
|
|
|
|
|
|
||
Vested
|
(110,659
|
)
|
|
$
|
16.68
|
|
|
|
|
|
||
Forfeited
|
(80,354
|
)
|
|
$
|
11.69
|
|
|
|
|
|
||
Nonvested at March 31, 2020
|
560,711
|
|
|
$
|
11.92
|
|
|
1.89
|
|
$
|
3,594,158
|
|
|
|
|
|
|
Weighted
|
|
|
|||||
|
|
|
Weighted
|
|
Average
|
|
|
|||||
|
|
|
Average
|
|
Remaining
|
|
|
|||||
|
Number of
|
|
Exercise Price
|
|
Contractual
|
|
Aggregate
|
|||||
|
Shares
|
|
Per Share
|
|
Term (in years)
|
|
Intrinsic Value
|
|||||
Outstanding at June 30, 2019
|
876,478
|
|
|
$
|
10.98
|
|
|
3.06
|
|
$
|
758,871
|
|
Exercised
|
(2,500
|
)
|
|
$
|
10.50
|
|
|
|
|
$
|
4,726
|
|
Canceled or forfeited
|
(55,000
|
)
|
|
$
|
15.00
|
|
|
|
|
|
||
Outstanding at March 31, 2020
|
818,978
|
|
|
$
|
10.71
|
|
|
2.48
|
|
$
|
—
|
|
Options vested and expected to vest
|
818,978
|
|
|
$
|
10.71
|
|
|
2.48
|
|
$
|
—
|
|
Exercisable at March 31, 2020
|
818,978
|
|
|
$
|
10.71
|
|
|
2.48
|
|
$
|
—
|
|
|
|
|
Nine Months Ended March 31,
|
|
2020
|
Volatility rate
|
46.4%
|
Risk-free interest rate
|
1.6%
|
Expected term
|
1.3 years
|
Dividend yield
|
0%
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Cost of goods sold
|
$
|
357
|
|
|
$
|
494
|
|
|
$
|
1,197
|
|
|
$
|
1,532
|
|
Research and development
|
991
|
|
|
555
|
|
|
1,987
|
|
|
1,929
|
|
||||
Selling, general and administrative
|
1,528
|
|
|
2,063
|
|
|
4,548
|
|
|
7,198
|
|
||||
|
$
|
2,876
|
|
|
$
|
3,112
|
|
|
$
|
7,732
|
|
|
$
|
10,659
|
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Hong Kong
|
$
|
90,050
|
|
|
$
|
87,143
|
|
|
$
|
280,396
|
|
|
$
|
265,914
|
|
China
|
13,607
|
|
|
18,834
|
|
|
46,690
|
|
|
63,991
|
|
||||
South Korea
|
1,861
|
|
|
260
|
|
|
10,130
|
|
|
568
|
|
||||
United States
|
830
|
|
|
1,684
|
|
|
2,829
|
|
|
5,624
|
|
||||
Other countries
|
504
|
|
|
1,146
|
|
|
2,469
|
|
|
2,967
|
|
||||
|
$
|
106,852
|
|
|
$
|
109,067
|
|
|
$
|
342,514
|
|
|
$
|
339,064
|
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Power discrete
|
$
|
89,932
|
|
|
$
|
89,936
|
|
|
$
|
291,964
|
|
|
$
|
275,485
|
|
Power IC
|
15,699
|
|
|
17,631
|
|
|
46,078
|
|
|
56,430
|
|
||||
Packaging and testing services
|
1,221
|
|
|
1,500
|
|
|
4,472
|
|
|
7,149
|
|
||||
|
$
|
106,852
|
|
|
$
|
109,067
|
|
|
$
|
342,514
|
|
|
$
|
339,064
|
|
|
March 31,
2020 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
China
|
$
|
312,345
|
|
|
$
|
321,145
|
|
United States
|
99,206
|
|
|
87,817
|
|
||
Other Countries
|
767
|
|
|
775
|
|
||
|
$
|
412,318
|
|
|
$
|
409,737
|
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
|
(in thousands)
|
|
(% of revenue)
|
|
(in thousands)
|
|
(% of revenue)
|
||||||||||||||||||||
Revenue
|
$
|
106,852
|
|
|
$
|
109,067
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
$
|
342,514
|
|
|
$
|
339,064
|
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of goods sold
|
84,393
|
|
|
83,438
|
|
|
79.0
|
%
|
|
76.5
|
%
|
|
268,717
|
|
|
251,322
|
|
|
78.5
|
%
|
|
74.1
|
%
|
||||
Gross profit
|
22,459
|
|
|
25,629
|
|
|
21.0
|
%
|
|
23.5
|
%
|
|
73,797
|
|
|
87,742
|
|
|
21.5
|
%
|
|
25.9
|
%
|
||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Research and development
|
13,569
|
|
|
11,417
|
|
|
12.7
|
%
|
|
10.5
|
%
|
|
38,084
|
|
|
35,401
|
|
|
11.1
|
%
|
|
10.4
|
%
|
||||
Selling, general and administrative
|
16,909
|
|
|
17,947
|
|
|
15.8
|
%
|
|
16.5
|
%
|
|
47,723
|
|
|
58,403
|
|
|
13.9
|
%
|
|
17.2
|
%
|
||||
Impairment of privately-held investment
|
600
|
|
|
—
|
|
|
0.6
|
%
|
|
—
|
%
|
|
600
|
|
|
—
|
|
|
0.2
|
%
|
|
—
|
%
|
||||
Total operating expenses
|
31,078
|
|
|
29,364
|
|
|
29.1
|
%
|
|
27.0
|
%
|
|
86,407
|
|
|
93,804
|
|
|
25.2
|
%
|
|
27.6
|
%
|
||||
Operating loss
|
(8,619
|
)
|
|
(3,735
|
)
|
|
(8.1
|
)%
|
|
(3.5
|
)%
|
|
(12,610
|
)
|
|
(6,062
|
)
|
|
(3.7
|
)%
|
|
(1.7
|
)%
|
||||
Interest expense and other income (loss), net
|
(2,282
|
)
|
|
(1,595
|
)
|
|
(2.1
|
)%
|
|
(1.5
|
)%
|
|
(3,744
|
)
|
|
(4,455
|
)
|
|
(1.1
|
)%
|
|
(1.3
|
)%
|
||||
Loss before income taxes
|
(10,901
|
)
|
|
(5,330
|
)
|
|
(10.2
|
)%
|
|
(5.0
|
)%
|
|
(16,354
|
)
|
|
(10,517
|
)
|
|
(4.8
|
)%
|
|
(3.0
|
)%
|
||||
Income tax expense (benefit)
|
(1,015
|
)
|
|
625
|
|
|
(0.9
|
)%
|
|
0.6
|
%
|
|
(37
|
)
|
|
1,886
|
|
|
—
|
%
|
|
0.6
|
%
|
||||
Net loss including noncontrolling interest
|
(9,886
|
)
|
|
(5,955
|
)
|
|
(9.3
|
)%
|
|
(5.6
|
)%
|
|
(16,317
|
)
|
|
(12,403
|
)
|
|
(4.8
|
)%
|
|
(3.6
|
)%
|
||||
Net loss attributable to noncontrolling interest
|
(3,391
|
)
|
|
(4,400
|
)
|
|
(3.2
|
)%
|
|
(4.0
|
)%
|
|
(9,826
|
)
|
|
(11,719
|
)
|
|
(2.9
|
)%
|
|
(3.5
|
)%
|
||||
Net loss attributable to Alpha and Omega Semiconductor Limited
|
$
|
(6,495
|
)
|
|
$
|
(1,555
|
)
|
|
(6.1
|
)%
|
|
(1.6
|
)%
|
|
$
|
(6,491
|
)
|
|
$
|
(684
|
)
|
|
(1.9
|
)%
|
|
(0.1
|
)%
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
|
(in thousands)
|
|
(% of revenue)
|
|
(in thousands)
|
|
(% of revenue)
|
||||||||||||||||||||
Cost of goods sold
|
$
|
357
|
|
|
$
|
494
|
|
|
0.3
|
%
|
|
0.5
|
%
|
|
$
|
1,197
|
|
|
$
|
1,532
|
|
|
0.3
|
%
|
|
0.5
|
%
|
Research and development
|
991
|
|
|
555
|
|
|
0.9
|
%
|
|
0.5
|
%
|
|
1,987
|
|
|
1,929
|
|
|
0.6
|
%
|
|
0.6
|
%
|
||||
Selling, general and administrative
|
1,528
|
|
|
2,063
|
|
|
1.4
|
%
|
|
1.9
|
%
|
|
4,548
|
|
|
7,198
|
|
|
1.3
|
%
|
|
2.1
|
%
|
||||
Total
|
$
|
2,876
|
|
|
$
|
3,112
|
|
|
2.6
|
%
|
|
2.9
|
%
|
|
$
|
7,732
|
|
|
$
|
10,659
|
|
|
2.2
|
%
|
|
3.2
|
%
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
||||||||||||||||||
Power discrete
|
$
|
89,932
|
|
|
$
|
89,936
|
|
|
$
|
(4
|
)
|
|
—
|
%
|
|
$
|
291,964
|
|
|
$
|
275,485
|
|
|
$
|
16,479
|
|
|
6.0
|
%
|
Power IC
|
15,699
|
|
|
17,631
|
|
|
(1,932
|
)
|
|
(11.0
|
)%
|
|
46,078
|
|
|
56,430
|
|
|
(10,352
|
)
|
|
(18.3
|
)%
|
||||||
Packaging and testing services
|
1,221
|
|
|
1,500
|
|
|
(279
|
)
|
|
(18.6
|
)%
|
|
4,472
|
|
|
7,149
|
|
|
(2,677
|
)
|
|
(37.4
|
)%
|
||||||
|
$
|
106,852
|
|
|
$
|
109,067
|
|
|
$
|
(2,215
|
)
|
|
(2.0
|
)%
|
|
$
|
342,514
|
|
|
$
|
339,064
|
|
|
$
|
3,450
|
|
|
1.0
|
%
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
||||||||||||||||||
Cost of goods sold
|
$
|
84,393
|
|
|
$
|
83,438
|
|
|
$
|
955
|
|
|
1.1
|
%
|
|
$
|
268,717
|
|
|
$
|
251,322
|
|
|
$
|
17,395
|
|
|
6.9
|
%
|
Percentage of revenue
|
79.0
|
%
|
|
76.5
|
%
|
|
|
|
|
|
|
78.5
|
%
|
|
74.1
|
%
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross profit
|
$
|
22,459
|
|
|
$
|
25,629
|
|
|
$
|
(3,170
|
)
|
|
(12.4
|
)%
|
|
$
|
73,797
|
|
|
$
|
87,742
|
|
|
$
|
(13,945
|
)
|
|
(15.9
|
)%
|
Percentage of revenue
|
21.0
|
%
|
|
23.5
|
%
|
|
|
|
|
|
|
21.5
|
%
|
|
25.9
|
%
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
||||||||||||||||||
Research and development
|
$
|
13,569
|
|
|
$
|
11,417
|
|
|
$
|
2,152
|
|
|
18.8
|
%
|
|
$
|
38,084
|
|
|
$
|
35,401
|
|
|
$
|
2,683
|
|
|
7.6
|
%
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
||||||||||||||||||
Selling, general and administrative
|
$
|
16,909
|
|
|
$
|
17,947
|
|
|
$
|
(1,038
|
)
|
|
(5.8
|
)%
|
|
$
|
47,723
|
|
|
$
|
58,403
|
|
|
$
|
(10,680
|
)
|
|
(18.3
|
)%
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
||||||||||||||||||
Impairment of privately-held investment
|
$
|
600
|
|
|
$
|
—
|
|
|
$
|
600
|
|
|
100.0
|
%
|
|
$
|
600
|
|
|
$
|
—
|
|
|
$
|
600
|
|
|
100.0
|
%
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
||||||||||||||||||
Interest expense and other income (loss), net
|
$
|
(2,282
|
)
|
|
$
|
(1,595
|
)
|
|
$
|
(687
|
)
|
|
43.1
|
%
|
|
$
|
(3,744
|
)
|
|
$
|
(4,455
|
)
|
|
$
|
711
|
|
|
(16.0
|
)%
|
|
Three Months Ended March 31,
|
|
Nine Months Ended March 31,
|
||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
||||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
|
(in thousands)
|
|
(in thousands)
|
|
(in percentage)
|
||||||||||||||||||
Income tax expense (benefit)
|
$
|
(1,015
|
)
|
|
$
|
625
|
|
|
$
|
(1,640
|
)
|
|
(262.4
|
)%
|
|
$
|
(37
|
)
|
|
$
|
1,886
|
|
|
$
|
(1,923
|
)
|
|
(102.0
|
)%
|
|
Nine Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(in thousands)
|
||||||
Net cash provided by operating activities
|
$
|
22,023
|
|
|
$
|
23,156
|
|
Net cash used in investing activities
|
(47,655
|
)
|
|
(90,295
|
)
|
||
Net cash provided by financing activities
|
16,494
|
|
|
77,477
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(636
|
)
|
|
(573
|
)
|
||
|
|
|
|
||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
$
|
(9,774
|
)
|
|
$
|
9,765
|
|
|
|
|
|
•
|
the economic recession and deteriorating financial market resulting from the COVID-19 pandemic may make it more difficult for us to obtain credit and secure debt financing on terms favorable to us, or at all, and we may not be able to comply with financial covenants in our existing credit agreements or service our existing debt if we do not generate sufficient cash flow from our operations;
|
•
|
we may encounter difficulties and disruptions in communication and coordination among our employees, partners, customers and others, which may reduce our productivity and interfere with our ability to serve our customers;
|
•
|
widespread COVID-19 disease could damage the health of our employees and management team, which may disrupt our business operations;
|
•
|
the value of our common shares may decline significantly as a result of factors outside of our control, such as stock market volatility, which will cause our shareholders to lose their investment.
|
10.1
|
|
10.2
|
|
10.3
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS
|
Inline XBRL Instance
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition
|
101.LAB
|
Inline XBRL Taxonomy Extension Labels
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
ALPHA AND OMEGA SEMICONDUCTOR LIMITED
|
|
|
|
By:
|
/s/ YIFAN LIANG
|
|
Yifan Liang
|
|
Chief Financial Officer and Corporate Secretary
|
|
(Principal Financial Officer)
|
1.
|
Alpha and Omega Semiconductor Limited (“AOS”), a company duly incorporated under the laws of Bermuda;
|
2.
|
Alpha & Omega Semiconductor (Shanghai) Ltd. (“AOS SH”), a company duly incorporated in Shanghai, China under the laws of the People’s Republic of China (“China”);
|
3.
|
Agape Package Manufacturing (Shanghai) Ltd. (“APM SH”), a company duly incorporated in Shanghai, China under the laws of China;
|
4.
|
Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (LP) (“Strategic Industry Fund”), a partnership duly organized in Chongqing under the laws of China; and
|
5.
|
Chongqing Liangjiang New Area Strategic Emerging Industry Equity Investment Fund Partnership (LP) (“Liangjiang Strategic Fund”), a partnership duly organized in Chongqing under the laws of China.
|
1.
|
The Parties have executed the Joint Venture Contract on Incorporation of Chongqing Alpha and Omega Semiconductor Limited (“Joint Venture”) (“Joint Venture Contract”) and the Supplemental Agreement to the Joint Venture Contract on Incorporation of Chongqing Alpha and Omega Semiconductor Limited (“Joint Venture”) (“Supplemental Agreement”); they also signed the Articles of Association of the Joint Venture (“Articles of Association”), which is now in effect, on March 13, 2018; and
|
2.
|
In order to successfully establish the Joint Venture and put it to operation, the Parties intend to increase the investment in the Joint Venture upon consensus through negotiation.
|
1.
|
The total investment in the Joint Venture will increase to USD 500 million.
|
2.
|
The registered capital of the Joint Venture will increase to USD 355 million, and the additional contribution of USD 25 million will be subscribed by the following Party:
|
S/N
|
Contributor
|
Subscribed Capital Contribution (USD)
|
Form of Capital Contribution
|
1
|
AOS
|
25 million
|
In Cash
|
Total
|
25 million
|
——
|
3.
|
After the increases of the investment in the Joint Venture by the said Party, the registered capital of the Joint Venture will reach USD 355 million. The ownership structure and ratio of contributions will be as follows:
|
S/N
|
Contributors
|
Subscribed Capital Contribution (USD)
|
Forms of Capital Contribution
|
Ratio of Capital Contribution (%)
|
1
|
Chongqing Strategic Emerging Industry Equity Investment Fund Partnership
|
108 million
|
In Cash
|
30.423
|
2
|
Chongqing Liangjiang New Area Strategic Emerging Industry Equity Investment Fund Partnership
|
54 million
|
In Cash
|
15.211
|
3
|
Alpha & Omega Semiconductor (Shanghai) Ltd.
|
31 million
|
Packaging equipment
|
8.732
|
4
|
Agape Package Manufacturing (Shanghai) Ltd.
|
43 million
|
Packaging equipment
|
12.113
|
5
|
Alpha and Omega Semiconductor Limited
|
119 million
|
Patents and know-hows (USD 84 million); and in cash (USD 35 million)
|
33.521
|
Total
|
355 million
|
----
|
100
|
4.
|
AOS shall pay the subscribed registered capital in the amount of USD 25 million to the account of the Joint Venture by August 20, 2018 after the Date of Effectiveness. Each Party shall be obligated to procure the directors of the Joint Venture appointed thereby to attend in person, or through a proxy authorized thereby, the board meeting to deliberate the capital increase plan hereunder, and to approve the plan at the meeting or sign related written resolution of the board meeting to approve the plan.
|
5.
|
The Joint Venture shall amend the part of Articles of Association relating to the amount and ratio of capital contribution after this Agreement is executed.
|
6.
|
This Agreement shall constitute an integral part of the Joint Venture Contract. Where there is any inconsistency between this Agreement and the Joint Venture Contract, this Agreement shall prevail; for matters not covered herein, relevant provisions of the Joint Venture Contract shall apply.
|
7.
|
This Agreement shall become effective on the Date of Effectiveness after it is executed by the Parties.
|
8.
|
This Agreement shall be executed in ten (10) counterparts, with each Party holding one (1) counterpart and the Joint Venture holding five (5) counterparts.
|
1.
|
Alpha and Omega Semiconductor Limited (“AOS”), a company duly incorporated under the laws of Bermuda;
|
2.
|
Alpha & Omega Semiconductor (Shanghai) Ltd. (“AOS SH”), a company duly incorporated in Shanghai, China under the laws of the People’s Republic of China (“China”);
|
3.
|
Agape Package Manufacturing (Shanghai) Ltd. (“APM SH”), a company duly incorporated in Shanghai, China under the laws of China;
|
4.
|
Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (LP) (“Strategic Industry Fund”), a partnership duly organized in Chongqing under the laws of China; and
|
5.
|
Chongqing Liangjiang New Area Strategic Emerging Industry Equity Investment Fund Partnership (LP) (“Liangjiang Strategic Fund”), a partnership duly organized in Chongqing under the laws of China.
|
1.
|
The Parties have executed the Joint Venture Contract on Incorporation of Chongqing Alpha and Omega Semiconductor Limited (“Joint Venture”) (“Joint Venture Contract”) and the Supplemental Agreement to the Joint Venture Contract on Incorporation of Chongqing Alpha and Omega Semiconductor Limited (“Joint Venture”) and Second Supplemental Agreement to the Joint Venture Contract on Incorporation of Chongqing Alpha and Omega Semiconductor Limited (“Joint Venture”) (“Supplemental Agreements”); they also signed the Articles of Association of the Joint Venture (“Articles of Association”), which is now in effect, on July 11, 2018; and
|
2.
|
In order to successfully establish the Joint Venture and put it to operation, the Parties intend to increase the investment in the Joint Venture upon consensus through negotiation.
|
1.
|
The registered capital of the Joint Venture will increase to USD 379 million, and the additional contribution of USD 24 million will be subscribed by the following Parties:
|
2.
|
After the increase of the investments in the Joint Venture by the said Parties, the ownership structure and ratio of contributions of the Joint Venture will be as follows:
|
S/N
|
Contributors
|
Subscribed Capital Contribution (USD)
|
Forms of Capital Contribution
|
Ratio of Contribution (%)
|
1
|
Chongqing Strategic Emerging Industry Equity Investment Fund Partnership
|
124 million
|
In Cash
|
32.7
|
2
|
Chongqing Liangjiang New Area Strategic Emerging Industry Equity Investment Fund Partnership
|
62 million
|
In Cash
|
16.4
|
3
|
Alpha & Omega Semiconductor (Shanghai) Ltd.
|
31 million
|
Packaging equipment
|
8.2
|
4
|
Agape Package Manufacturing (Shanghai) Ltd.
|
43 million
|
Packaging equipment
|
11.3
|
5
|
Alpha and Omega Semiconductor Limited
|
119 million
|
Patents and know-hows (USD 84 million); and in cash (USD 35 million)
|
31.4
|
Total
|
379 million
|
----
|
100
|
3.
|
Strategic Industry Fund and Liangjiang Strategic Fund shall pay their subscribed registered capital in full to the account of the Joint Venture by December 29, 2018 after the Date of Effectiveness. Each Party shall be obligated to procure the directors of the Joint Venture appointed thereby to attend in person, or through a proxy authorized thereby, the board meeting to deliberate the capital increase plan hereunder, and to approve the plan at the meeting or sign related written resolution of the board meeting to approve the plan.
|
4.
|
The Joint Venture shall amend the part of Articles of Association relating to the amount and ratio of capital contribution after this Agreement is executed.
|
5.
|
This Agreement shall constitute an integral part of the Joint Venture Contract. Where there is any inconsistency between this Agreement and the Joint Venture Contract, this Agreement shall prevail; for matters not covered herein, relevant provisions of the Joint Venture Contract shall apply.
|
6.
|
This Agreement shall become effective on the Date of Effectiveness after it is executed by the Parties.
|
7.
|
This Agreement shall be executed in ten (10) counterparts, with each Party holding one (1) counterpart and the Joint Venture holding five (5) counterparts.
|
A.
|
Landlord (as successor in interest to OA Oakmead II, LLC, a Delaware limited liability company) and Tenant are parties to that certain Lease dated December 23, 2009 (the “Original Lease”), which Original Lease has been previously amended by that certain First Addendum to Lease dated December 23, 2009 (the “First Addendum to Lease”) and that certain Acceptance Agreement dated April 23, 2010 (collectively, the “Lease”). Pursuant to the Lease, Landlord has leased to Tenant space currently containing approximately 57,310 rentable square feet (the “Premises”) in the building located at 475 Oakmead Parkway, Sunnyvale, California (the “Building”).
|
B.
|
The Lease by its terms shall expire on April 30, 2020 (“Prior Termination Date”), and the parties desire to extend the Lease Term, all on the following terms and conditions.
|
1.
|
Extension. The Lease Term is hereby extended for a period of ten (10) years and shall expire on April 30, 2030 (“Extended Termination Date”), unless sooner terminated in accordance with the terms of the Lease. That portion of the Lease Term commencing the day immediately following the Prior Termination Date (“Extension Date”) and ending on the Extended Termination Date shall be referred to herein as the “Extended Lease Term”.
|
2.
|
Base Monthly Rent. As of the Extension Date, the schedule of Base Monthly Rent payable with respect to the Premises during the Extended Lease Term is the following:
|
Period
|
Rentable Square
Footage
|
Monthly Rate Per
Square Foot
|
Base Monthly
Rent
|
5/1/20 – 4/30/21
|
57,310
|
$2.65
|
$151,871.52
|
5/1/21 – 4/30/22
|
57,310
|
$2.73
|
$156,456.36
|
5/1/22 – 4/30/23
|
57,310
|
$2.81
|
$161,041.08
|
5/1/23 – 4/30/24
|
57,310
|
$2.89
|
$165,625.92
|
5/1/24 – 4/30/25
|
57,310
|
$2.98
|
$170,783.76
|
5/1/25 – 4/30/26
|
57,310
|
$3.07
|
$175,941.72
|
5/1/26 – 4/30/27
|
57,310
|
$3.16
|
$181,099.56
|
5/1/27 – 4/30/28
|
57,310
|
$3.25
|
$186,257.52
|
5/1/28 – 4/30/29
|
57,310
|
$3.35
|
$191,988.48
|
5/1/29 – 4/30/30
|
57,310
|
$3.45
|
$197,719.56
|
3.
|
Additional Security Deposit. Upon Tenant’s execution hereof, Tenant shall pay Landlord the sum of $76,597.52 which is added to and becomes part of the Security Deposit, if any, held by Landlord as provided under Section 3.5 of the Original Lease as security for payment of rent and the performance of the other terms and conditions of the Lease by Tenant. Accordingly, simultaneous with the execution hereof, the Security Deposit is increased from $75,274.00 to $151,871.52.
|
4.
|
Additional Rent. For the period commencing on the Extension Date and ending on the Extended Termination Date, Tenant shall pay all Additional Rent payable under the Lease, including Tenant’s Share of Common Operating Expenses, in accordance with the terms of the Lease, as amended hereby.
|
5.1
|
Condition of Premises. Tenant is in possession of the Premises and accepts the same “as is” without any agreements, representations, understandings or obligations on the part of Landlord to perform any alterations, repairs or improvements, except as may be expressly provided otherwise in this Amendment. Tenant hereby agrees and acknowledges that Landlord has fulfilled its obligations set forth in Exhibit “B” to the Original Lease.
|
5.2
|
Responsibility for Improvements to Premises. Tenant may perform improvements to the Premises in accordance with the Exhibit A attached hereto and Tenant shall be entitled to an improvement allowance in connection with such work as more fully described in Exhibit A. Landlord, at Landlord’s sole cost, shall perform the following repairs to the parking lot serving the Building using Building standard materials and as otherwise reasonably determined by Landlord: (i) repair asphalt; (ii) repair the drain in the rear part of the parking lot; (iii) seal the parking lot; and (iv) paint the curbs. Landlord shall also perform certain HVAC Work in the Premises, as further described in Section 8 below and Exhibit A attached hereto.
|
6.
|
Extension Option. Section 2 of the First Addendum to Lease is hereby deleted in its entirety and is of no further force or effect. Provided that (i) Alpha and Omega Semiconductor Incorporated, a California corporation, has not assigned the Lease or sublet any or all of the Premises other than to a Permitted Transferee (it being intended that all rights pursuant to this provision are and shall be personal to the original Tenant under the Lease and shall not be transferable or exercisable for the benefit of any transferee other than a Permitted Transferee), and (ii) no Event of Tenant’s Default exists under the Lease, as amended hereby, at the time of exercise or at any time thereafter until the beginning of such extension of the Lease Term, Tenant shall have the option (the “Extension Option”) to extend the Lease Term for one (1) additional consecutive period of five (5) years (the “Extension Period”), by giving written notice to Landlord of the exercise of such Extension Option at least twelve (12) months, but not more than fifteen (15) months, prior to the expiration of the Extended Lease Term. Tenant’s exercise outside of the period between such dates shall be of no force or effect. The exercise of the Extension Option by Tenant shall be irrevocable and shall cover the entire Premises leased by Tenant pursuant to the Lease, as amended hereby. Upon such exercise, the term of the Lease shall automatically be extended for the Extension Period without the execution of any further instrument by the parties; provided that Landlord and Tenant shall, if requested in writing by either party, execute and acknowledge an instrument confirming the exercise of the Extension Option. Any extension of the Lease Term shall be upon all the terms and conditions set forth in the Lease, as amended hereby, and all Exhibits thereto, except that: (i) Tenant shall have no further option to extend the Lease Term; (ii) Landlord shall not be obligated to contribute funds toward the cost of any remodeling, renovation, alteration or improvement work in the Premises; (iii) Landlord shall not be obligated to pay any fee or commission to any broker; and (iv) Base Monthly Rent for the Extension Period shall be one hundred percent (100%) of the then Fair Market Base Rental (as defined below) for the Premises for the space and term involved, which shall be determined as set forth below.
|
6.1
|
“Fair Market Base Rental” shall mean the “fair market” Base Monthly Rent at the time or times in question for the applicable space in the Building, based on the prevailing rentals then being charged to tenants in other office and research and development buildings in the general vicinity of the Building of comparable location and quality as the Building, for leases with terms approximately equal to the term for which Fair Market Base Rental is being determined, taking into account: the desirability, location in the building, size and quality of the space, including interior finishes and other tenant improvements; included services and related operating expenses and tax and expense stops or other escalation clauses; and any other special rights of Tenant under the Lease in comparison to typical market leases (e.g. for parking, signage, and extension or expansion options). Fair Market Base Rental shall also reflect the then prevailing rental structure for comparable office and research and development buildings in the general vicinity of the Building, so that if, for example, at the time Fair Market Base Rental is being determined the prevailing rental structure includes periodic rental adjustments or escalations, Fair Market Base Rental shall reflect such rental structure.
|
6.2
|
Landlord and Tenant shall endeavor to agree upon the Fair Market Base Rental. If they are unable to so agree within thirty (30) days after receipt by Landlord of Tenant’s notice of exercise of the Extension Option, Landlord and Tenant shall mutually select a licensed real estate broker who is active over the five (5) year period ending on the date of such appointment in the appraising or leasing, as the case may be, of such office and research and development buildings in the general vicinity of the Building. Landlord shall submit Landlord’s determination of Fair Market Base Rental and Tenant shall submit Tenant’s determination of Fair Market Base Rental to such broker, at such time or times and in such manner as Landlord and Tenant shall agree (or as directed by the broker if Landlord and Tenant do not promptly agree). The broker shall select either Landlord’s or Tenant’s
|
6.3
|
In the event the Fair Market Base Rental for the Extension Period has not been determined at such time as Tenant is obligated to pay Base Monthly Rent for the Extension Period, Tenant shall pay as Base Monthly Rent pending such determination, the Base Monthly Rent in effect for such space immediately prior to the Extension Period; provided, that upon the determination of the applicable Fair Market Base Rental, any shortage of Base Monthly Rent paid shall be paid to Landlord by Tenant or any overage of Base Monthly Rent paid shall be paid to Tenant by Landlord.
|
7.1
|
If, during the Lease Term, Landlord intends to formally offer for sale to unaffiliated third parties Landlord’s interest in the title to the Building and the legal parcel of land upon which the Building is situated, as a stand-alone sale transaction only and not a part of a portfolio offering or otherwise bundled with or conditioned on the sale of other assets (the "Offer Property", such offering being a “Public Offering”), Landlord shall first give written notice to Tenant of the purchase price and other material terms upon which Landlord in its sole discretion is willing to sell the Offer Property to Tenant ("Landlord's Offer Notice"). The right to receive the Landlord’s Offer Notice and exercise other rights set forth in this Section 7 shall be personal to Tenant and not transferable to or exercisable by any subtenant or assignee of Tenant, and shall not apply at all in connection with unsolicited offers to purchase the Offer Property received by Landlord absent a Public Offering, which Landlord may, in its sole discretion, consider, negotiate and accept without notice to Tenant.
|
7.2
|
Should Tenant be entitled to receive the Landlord’s Offer Notice, Tenant shall have the one time right of first offer ("Right of First Offer") to buy the Offer Property upon the economic terms and conditions contained in Landlord's Offer Notice and subject to the other terms and conditions set forth in this Section 7, provided that within ten (10) Business Days after receipt of Landlord's Offer Notice, Tenant delivers a written notice (the "Purchase Commitment") to Landlord of Tenant's desire to pursue the proposed sale transaction described in Landlord's Offer Notice. Notwithstanding anything to the contrary contained herein, at Landlord’s option, Tenant shall have no such Right of First Offer and Landlord need not provide Tenant with Landlord's Offer Notice (if the same has not yet been delivered), and Tenant’s other rights under this Section 7 shall lapse and be of no further force and effect, if:
|
7.3
|
If Tenant timely delivers the Purchase Commitment, the parties shall have a period of fifteen (15) Business Days following Landlord’s delivery of the proposed purchase and sale agreement containing all of the terms and conditions upon which Landlord shall sell to Tenant and Tenant shall buy from Landlord the Offer Property (the economic terms and conditions of which shall be consistent with the Landlord's Offer Notice) to negotiate, execute and deliver such a formal, binding purchase and sale agreement (the “PSA”). If the parties fail to execute and deliver the PSA within said fifteen (15) Business Day period, all rights of Tenant to purchase the Offer Property shall terminate, Tenant shall be deemed not to have exercised its Right of First Offer, and Landlord shall have no further obligation to notify Tenant of any proposed offer or sale of the Offer Property and Landlord shall thereafter have the unconditional right to offer, negotiate and sell the Offer Property to any party free of Tenant’s Right of First Offer. If Tenant does not exercise or is deemed not to have exercised its Right of First Offer, or otherwise loses its rights under this Section 7, or if Tenant defaults under the PSA, Landlord shall be free of any obligations pursuant to this Section 7 and may sell the Offer Property, to any purchaser, on whatever terms and conditions Landlord, in its sole discretion, deems acceptable.
|
7.5
|
Tenant’s rights under this Right of First Offer may not be assigned, sold, encumbered, or otherwise transferred by Tenant without Landlord’s express prior written consent, which may be withheld or conditioned by Landlord in Landlord’s sole discretion; and any such assignment, sale, encumbrance, or transfer by Tenant without Landlord’s consent shall be void and of no force and effect.
|
8.1
|
Landlord shall, at Landlord’s sole cost and expense, on the roof of the Building, (i) replace certain HVAC units and related systems to service the Building (the “New HVAC Units”), (ii) remove certain abandoned HVAC units (the “Abandoned HVAC Units”) serving the Premises, and (iii) leave in place certain existing HVAC units (the “Existing HVAC Units”) and perform certain repairs to such Existing HVAC Units, as further described on Schedule 3 to Exhibit A attached hereto. The installation of New HVAC Units, removal of Abandoned HVAC Units and performance of repairs to Existing HVAC Units is collectively referred to herein as the “HVAC Work”, and the New HVAC Units and the Existing HVAC Units are collectively referred to herein as the “HVAC Units”. Except as otherwise expressly provided in the following sentence, Landlord shall be solely responsible for all costs and expenses related to the HVAC Work. The HVAC Work shall include all engineering and design costs associated therewith, and the re-ducting and re-zoning as shown on Schedule 4 to Exhibit A to the extent needed to ensure that all HVAC Units are properly working and conducting air balancing for the New HVAC Units and Existing HVAC Units. Tenant shall be responsible for the cost to re-duct, re-zone and rebalance the HVAC Units serving any new office space (subject to the Improvement Allowance, as defined below). Landlord shall use reasonable efforts to substantially complete the HVAC Work by December 31,
|
8.2
|
Upon the installation of the New HVAC Units, title to the New HVAC Units shall pass to Landlord without any additional consideration to Tenant and upon the expiration or earlier termination of the Lease, the HVAC Units shall remain at the Building; provided that Tenant, not Landlord, shall be responsible for all costs and expenses related to the use, maintenance and operation of the HVAC Units (including the New HVAC Units following the installation thereof), subject to the terms of the Lease and this Amendment, including, without limitation, Section 8.3, below, and Landlord’s obligations under Section 5.6 of the Lease (including, without limitation, future replacement of HVAC equipment).
|
8.3
|
Subject to Landlord’s obligations under Section 5.6 of the Lease (including, without limitation, replacement of HVAC Units), Tenant, at its sole cost and expense, shall procure and maintain in full force and effect, a contract (the “Service Contract”) for the service, maintenance, repair and replacement of the HVAC Units with a HVAC service and maintenance contracting firm reasonably acceptable to Landlord (“Service Contractor”). Subject to Landlord’s obligations under Section 5.6 of the Lease (including, without limitation, replacement of HVAC Units), Tenant shall follow all reasonable recommendations made by the Service Contractor for the maintenance, repair and replacement of the HVAC Units. The Service Contract shall require the Service Contractor to perform all required maintenance protocols established by the equipment manufacturer, and shall further provide that the Service Contractor perform inspections of the HVAC Units at intervals of not less than three (3) months, and that having made such inspections, the Service Contractor shall furnish a complete report of any defective conditions found to be existing with respect to the HVAC Units, together with any recommendations for maintenance, repair and/or replacement thereof. Said report shall be furnished to Tenant with a copy to Landlord. In addition, but subject to Landlord’s obligations under Section 5.6 of the Lease (including, without limitation, replacement of HVAC Units), Tenant shall be responsible for the cost of repairs to the HVAC Units serving the Premises to the extent such repairs are not fully covered by the Service Contract on such HVAC Unit.
|
8.4
|
Notwithstanding anything to the contrary in Section 8.3 above, for the first twelve (12) months following Landlord’s completion of the HVAC Work, Landlord shall service, maintain, repair and replace, as applicable, all of the HVAC Units; provided, however, that the cost to service, maintain, repair and replace the Existing HVAC Units and the cost to service and maintain (but not repair or replace) the New HVAC Units during such twelve (12) month period shall be included in Common Operating Expenses in accordance with Section 5.6 of the Lease; provided, however, any HVAC Service Contract obtained by Landlord shall be at a commercially reasonable rate. In addition to the foregoing, with respect to each New HVAC Unit, for the first twelve (12) months following the installation of each New HVAC Unit (each twelve (12)-month period referred to as the “New HVAC Warranty Period”), Landlord shall be solely responsible for the cost to repair and replace the New HVAC Units (and such cost shall not be included in Common Operating Expense). Landlord’s obligation to pay for such cost to repair and replace any New HVAC Unit shall be applicable to any New HVAC Units requiring repair and/or replacement during the applicable New HVAC Warranty Period, regardless of when such repair and replacement work is actually commenced and completed. Except as provided in the foregoing sentence, following the New HVAC Warranty Period, all HVAC Units shall be serviced, maintained and repaired by Tenant, at its sole cost, in accordance with the terms of Section 8.3 above.
|
9.
|
Other Pertinent Provisions. Landlord and Tenant agree that, effective as of the date of this Amendment (unless different effective date(s) is/are specifically referenced in this Section), the Lease shall be amended in the following additional respects:
|
9.2
|
Cannabis. Tenant shall not bring upon the Premises or the Building or use the Premises or permit the Premises or any portion thereof to be used for the growing, manufacturing, administration, distribution (including without limitation, any retail sales), possession, use or consumption of any cannabis, marijuana or cannabinoid product or compound, regardless of the legality or illegality of the same.
|
9.3
|
Management Fee. Notwithstanding anything to the contrary contained in Section 8.2(c) of the Original Lease, the total amount charged for any management fee and included in Tenant’s Share of Common Operating Expenses shall not exceed the monthly rate of three percent (3%) of Base Monthly Rent.
|
9.4
|
Tenant Entity Name Correction. References to Tenant in the Lease as “Alpha and Omega Semiconductor, Inc., a California corporation” are in error and the parties hereto acknowledge and agree that the definition of Tenant is as is stated in this Amendment. ALPHA AND OMEGA SEMICONDUCTOR INCORPORATED, a California corporation, hereby ratifies the Lease and agrees that it is bound by all terms and conditions of the Lease as of the original lease execution date, in the same manner and to the same extent as though the correct tenant name had been reflected therein.
|
10.6
|
Pursuant to California Civil Code Section 1938, Landlord hereby notifies Tenant that as of the date of this Amendment, the Premises have not undergone inspection by a “Certified Access Specialist” (“CASp”) to determine whether the Premises meet all applicable construction-related accessibility standards under California Civil Code Section 55.53. Landlord hereby discloses pursuant to California Civil Code Section 1938 as follows: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction- related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.” Landlord and Tenant hereby acknowledge and agree that in the event that Tenant elects to perform a CASp inspection of the Premises hereunder, such CASp inspection shall be performed at Tenant’s sole cost and expense and Tenant shall be solely responsible for the cost of any repairs, upgrades, alterations and/or modifications to the Premises or the Building necessary to correct any such violations of construction-related accessibility standards identified by such CASp inspection as required by Law, which repairs, upgrades, alterations and/or modifications may, at Landlord’s option, be performed by Landlord at Tenant’s expense, payable as additional rent within ten (10) days following Landlord’s demand. The terms and conditions of this Section 10.6 shall apply only in the event Tenant conducts an Inspection; otherwise, the terms and conditions of the Lease, as amended, shall govern with respect to each of Landlord’s and Tenant’s liability for compliance with applicable Laws.
|
10.8
|
Redress for any claim against Landlord under the Lease and this Amendment shall be limited to and enforceable only against and to the extent of Landlord’s interest in the Building. The obligations of Landlord under the Lease are not intended to and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its trustees or board of directors and officers, as the case may be, its investment manager, the general partners thereof, or any beneficiaries, stockholders, employees, or agents of Landlord or the investment manager, and in no case shall Landlord be liable to Tenant hereunder for any lost profits, damage to business, or any form of special, indirect or consequential damage.
|
LANDLORD:
|
|
TENANT:
|
|||
|
|
|
|
|
|
ECI FIVE OAKMEAD LLC,
|
|
ALPHA AND OMEGA SEMOCONDUCTOR
|
|||
a Delaware limited liability company
|
|
INCORPORATED, a California corporation
|
|||
|
|
|
|
|
|
By:
|
Embarcadero Capital Investors Five LP,
|
|
By: /s/ Steve Sun
|
||
|
a Delaware limited partnership,
|
|
Name: Steve Sun
|
||
|
its sole member
|
|
Title: VP of HR
|
||
|
|
|
|
|
|
|
By:
|
ECP Five, LLC,
|
|
|
By: /s/ Yifan Liang
|
|
|
a Delaware limited liability company,
|
|
Name: Yifan Liang
|
|
|
|
its general partner
|
|
Title: CFO
|
|
|
|
|
|
|
|
|
By:
|
/s/ John Hamilton
|
|
|
|
|
|
John Hamilton
|
|
|
|
|
|
Manager
|
|
|
|
Unit
|
Manufacturer
|
Tons
|
AC1
|
TRANE
|
15
|
AC2
|
TRANE
|
7.5
|
AC3
|
YORK
|
5
|
AC4
|
TRANE
|
12.5
|
AC6
|
TRANE
|
7.5
|
AC9
|
YORK
|
5
|
AC10
|
YORK
|
5
|
AC11B
|
TRANE
|
8.5
|
AC12
|
YORK
|
3
|
AC13
|
YORK
|
3
|
AC14
|
TRANE
|
10
|
AC16
|
YORK
|
3.5
|
AC19
|
TRANE
|
12.5
|
AC21
|
TRANE
|
6.25
|
AC23
|
TRANE
|
17.5
|
AC25
|
CARRIER
|
5
|
AC29
|
CARRIER
|
6.25
|
AC30
|
BDP
|
3
|
AC31
|
TRANE
|
10
|
AC32
|
TRANE
|
12.5
|
AC33
|
TRANE
|
10
|
|
|
|
|
UNITS TO BE REMOVED
|
|
AC11A
|
WESTINGHOUSE
|
N/A
|
AC22
|
TRANE
|
12.5
|
AC28
|
CARRIER
|
N/A
|
AC34
|
YORK
|
3
|
|
|
|
|
HVAC REPAIRS
|
|
AC5
|
Indoor fan motors needs to be adjusted.
|
|
AC16
|
Contactors and capacitor need to be replaced.
|
|
AC17
|
Sheave needs replacement. Contactors need to be replaced.
|
|
AC19
|
Contactors need to be replaced.
|
|
AC23
|
Contactors need to be replaced
|
|
AC24
|
Ductwork needs to be sealed. Contactors need to be replaced.
|
|
AC25
|
Head pressure control and condenser fan motor have failed.
|
|
AC26
|
Compressor contactors and sheave need replacement.
|
|
AC27
|
Blower wheel sheave and contactors need to be replaced.
|
|
AC30
|
Contactors need to be replaced.
|
|
AC32
|
Inducer motor and blower motor sheave have failed.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Alpha and Omega Semiconductor Limited (the "registrant");
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ Mike F. Chang
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Mike F. Chang
Chief Executive Officer
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1.
|
I have reviewed this Quarterly Report on Form 10-Q of Alpha and Omega Semiconductor Limited (the "registrant");
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ Yifan Liang
|
Yifan Liang Chief Financial Officer and Corporate Secretary
|
a.
|
the Quarterly Report of the Company on Form 10-Q for the fiscal quarter ended March 31, 2020 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
b.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Mike F. Chang
|
Mike F. Chang
Chief Executive Officer
|
a.
|
the Quarterly Report of the Company on Form 10-Q for the fiscal quarter ended March 31, 2020 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
b.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Yifan Liang
|
Yifan Liang
Chief Financial Officer and Corporate Secretary
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