Stock Track | Alpha & Omega Semiconductor Plunges 15% on Profitability Concerns

Stock Track11-05

Alpha & Omega Semiconductor Ltd (NASDAQ: AOSL) experienced a dramatic 15.92% plunge in its stock price on Monday, following the company's mixed fiscal first-quarter 2025 earnings report. The semiconductor company's revenue grew 0.7% year-over-year to $181.9 million, in line with its guidance, but its profitability took a hit, raising concerns among investors.

The company's non-GAAP gross margin declined to 25.5%, compared to 26.4% in the previous quarter and 28.8% a year ago. This decline was attributed to average selling price (ASP) erosion and unfavorable product mix changes, which weighed heavily on Alpha & Omega's bottom line.

Additionally, the company provided a cautious outlook for the upcoming quarters. It expects a close to 30% sequential decline in the consumer segment for the December quarter due to seasonal declines in the 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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