“AOS delivered another quarter of outstanding execution, breaking revenue records both on a quarterly and annual basis. The solid June quarter brought a strong finish to our fiscal year 2018: we achieved an annual revenue growth of 10%, a non-GAAP gross margin expansion of 270 basis points, and non-GAAP earnings per share increase of 37%, as compared to a year ago. During fiscal year 2018, we dedicated our efforts to enhance demand creation and expand capacity. I am pleased to announce that the critical investments and heavy lifting of our internal capacity expansion are now largely behind us,” stated Dr. Mike Chang, chairman and CEO of the company. “As we entered fiscal year 2019 with stronger and more diverse product portfolio, increased capacity and enhanced customer partnerships, we are optimistic that our investments in the past year will enable us to capitalize on the next phase of accelerated growth. We remain keenly focused on executing our longer term strategies.”
Business Outlook for Fiscal Q1 Ending September 30, 2018
The following forward-looking statements are based on management's current expectations and actual results may differ materially. AOS undertakes no obligation to update these statements.
- Revenue is expected to be between $113 million and $117 million.
- Gross margin is expected to be approximately 26.5% plus or minus 1%. Non-GAAP gross margin is expected to be approximately 28.5% plus or minus 1%. Non-GAAP gross margin excludes $0.6 million of estimated share-based compensation charge and $1.7 million of estimated production ramp-up costs relating to the Chongqing joint venture.
- Operating expenses are expected to be in the range of $32.0 million plus or minus $1 million. Non-GAAP operating expenses are expected to be in the range of $24.2 million plus or minus $1 million. Both GAAP and non-GAAP operating expenses include $2.1 million to $2.3 million of estimated expenses relating to the development of our digital power team. Non-GAAP operating expenses exclude an estimated share-based compensation charge of approximately $2.8 million and estimated pre-production expenses relating to the Chongqing joint venture of $5.0 million.
- Tax expense is expected to be approximately $0.6 million to $0.8 million.
- Loss attributable to noncontrolling interest is expected to be around $4.2 million. On a non-GAAP basis, excluding estimated pre-production expenses and production ramp-up costs relating to the Chongqing joint venture of approximately $3.5 million, this item is expected to be approximately $0.7 million.
Conference Call and Webcast
AOS plans to conduct an investor teleconference and live webcast to discuss the financial results for the fiscal fourth quarter and the fiscal year ended June 30, 2018 today, August 8, 2018 at 2:00 p.m. PT / 5:00 p.m. ET. To participate in the live call, analysts and investors should dial 877-312-8797 (or 253-237-1194 if outside the U.S.). To access the live webcast and the subsequent replay of the conference call, which will be available for seven days after the live call, go to the "Events & Presentations" section of the company's investor relations website, http://investor.aosmd.com. In addition, a copy of the script of prepared remarks by CEO and CFO at the investor teleconference and webcast is available prior to the call at the Company’s investor relations website.
Forward Looking Statements
This press release contains forward-looking statements that are based on
current expectations, estimates, forecasts and projections of future
performance based on management's judgment, beliefs, current trends, and
anticipated product performance. These forward-looking statements
include, without limitation, statements relating to expected growth
rate, our product portfolios, projected amount of revenue, gross margin,
operating income (loss), income tax expenses, net income (loss),
noncontrolling interest, and share-based compensation expenses, non-GAAP
gross margin, non-GAAP operating expenses, tax expenses, and non-GAAP
loss attributable to noncontrolling interest, our ability and strategy
to develop new products, including digital power controller products,
the ability to expand our sales, increase our capacity and achieve
sustained growth and profitability, the pre-production and production
phases of our Chongqing joint venture, the relationship with key
customers, and other information under the section entitled “Business
Outlook for Fiscal Q1 Ending September 30, 2018”. Forward-looking
statements involve risks and uncertainties that may cause actual results
to differ materially from those contained in the forward-looking
statements. These factors include, but are not limited to, difficulties
and challenges in executing our diversification strategy into different
market segments; ordering pattern from distributors and seasonality; our
ability to introduce or develop new and enhanced products that achieve
market acceptance, the actual product performance in volume production,
the quality and reliability of our product, our ability to achieve
design wins, the general business and economic conditions, the state of
semiconductor industry and seasonality of our markets, our ability to
maintain factory utilization at a desirable level, our ability to
successfully operate our joint venture in China, and other risks as
described in our SEC filings, including our Annual Report on Form 10-K
for the fiscal year ended June 30, 2018 to be filed by AOS. Other
unknown or unpredictable factors or underlying assumptions subsequently
proving to be incorrect could cause actual results to differ materially
from those in the forward-looking statements. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity,
performance, or achievements. You should not place undue reliance on
these forward-looking statements. All information provided in this press
release is as of today's date, unless otherwise stated, and AOS
undertakes no duty to update such information, except as required under
applicable law.
