Alpha & Omega Semiconductor Ltd (NASDAQ: AOSL) reported mixed results for its fiscal first quarter of 2025, with revenue growth but declining profitability. The company's stock plunged over 11% in pre-market trading as investors reacted to the earnings report.
The semiconductor company posted a revenue of $181.9 million, up 12.8% sequentially and 0.7% year-over-year, in line with its guidance. However, non-GAAP gross margin declined to 25.5%, compared to 26.4% in the previous quarter and 28.8% a year ago, impacted by ASP erosion and mix changes.
Non-GAAP earnings per share (EPS) came in at $0.21, slightly missing analyst estimates of $0.22, but higher than the previous quarter's $0.09. The company reported a net loss of $2.5 million for the quarter.
Alpha & Omega Semiconductor saw strong demand across major segments, including computing, consumer, and communications. The computing segment revenue increased by 8.6% year-over-year and 6.6% sequentially, outperforming expectations. However, the power supply and industrial segment was down 23.7% year-over-year, despite a 15.6% sequential increase.
Looking ahead, the company expects a close to 30% sequential decline in the consumer segment for the December quarter due to seasonal declines in gaming and TV markets. The communications segment is also anticipated to see a low double-digit sequential drop due to seasonality.
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