Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) Q2 2024 Earnings Call Transcript

Jeremy Kwan: And also, I appreciate you provided CapEx guidance for the quarter. Can you give us kind of an outlook for the year? Do you expect it to remain in that 10 million range or can it be taken down a bit? And also, the customer deposits both the ones that you’re returning back, how much is left and for the silicon wafer deposit, is there — do you see this as a one-time thing or do you have to secure additional supply down the line? Thank you.

Yifan Liang : Regarding our own CapEx, and again, I would expect throughout this calendar year, our CapEx, right now is at — what I call maintenance mode. We do our regular upgrade and solve some production bottleneck areas. And so, we don’t have a major plan to expand. Generally, we target 6% to 8% of our revenue as CapEx. So, I would expect this year, 10 million ish per quarter. That’s probably in the ballpark. In terms of customer deposits, last calendar year, 2023, we returned about $30 million or sold. So, this calendar year, 2024, we expect to return another $30 million or so customer deposits. In terms of our own deposit we made that’s a one-time deposit, so I would not expect further or well, depends on the situation. But at this point, that’s a one-time department.

Jeremy Kwan: Quick follow-up on the deposit that you’re returning. How much is left after you do the $30 million this year?

Yifan Liang : At the end of December last year, we had about a $60 some million dollars deposit on hand. So, calendar 2024 will return another $30 million also.

Jeremy Kwan: Got it. And one last question if I could. Stephen, appreciate the guidance that you gave for by end market, if I’m doing the math right, it looks like licensing and other, that kind of goes down to less than 1%. If that’s not the case can you help me see where I went wrong?

Yifan Liang : There was some like assembly service so that a little bit so that’s probably it.

Jeremy Kwan: So 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?

Yifan Liang : No. Correct. I mean, assembly service and we just do some services for some idle capacity. So not a major business for us.

Operator: [Operator Instructions]. There are no additional questions at this time. I’ll hand it back to the management team for closing remarks.

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

Operator: That’s conclude today’s conference call. You may now disconnect your lines.