Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) Q1 2024 Earnings Call Transcript

Stephen Chang: Right now, it’s still a bit slow because it’s tied to the overall housing and real estate market globally and that slowed down quite a bit in the past year or so. So overall, we’re not expecting too much in the shorter term. Overall in the longer term, this is still a core part of the business. Again, the key thing here is we’re selling our IGBTs as well as our modules based on those IGBTs. We can do it. We have a solution that is smaller than the competition. But it does have to contend with overall macro, at least for that subsegment. So in the shorter term, I don’t see too much — too exciting in the shorter term. But in the longer term, this is a $2 billion-plus market and we’re just scratching the surface.

David Williams: Okay. All right. Great. And then just the last one for me here, just the cadence of orders through the quarter, was there any change maybe between the beginning and the end of the quarter of the order?

Yifan Liang: Backlog I think this quarter has been steady and I mean. Some fresh orders came in after a period of time of inventory correction. And I mean, by and large, order positions has been reflected in our December quarter guidance.

Operator: We have an additional follow-up from Jeremy Kwan with Stifel.

Jeremy Kwan: Just one last follow-up. On the operating cash flow, it included the customer deposit repayment — so if we exclude this, would it be $22.4 million operating cash flow for the quarter?

Yifan Liang: Correct.

Jeremy Kwan: Got it. And how much remaining is in your customer deposits at this point?

Yifan Liang: We still have about a $75 million-ish in customer deposits at this point. We would expect the next calendar year, we’ll probably return around $30 million or so.

Operator: There are no additional questions waiting at this time. So I’ll pass the conference back to the management team for any closing remarks.

Yifan Liang: 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.

Stephen Chang: Thank you.

Operator: That concludes today’s conference call. Thank you for your participation. You may now disconnect your line.