Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 48

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 48
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 to a shift in product mix.  The net increase in revenues was primarily driven by a significant increase in the computing markets, particularly in graphics cards products and tablet products, as well as an increase in the communication markets, particular in battery and networking products, partially offset by a decrease in consumer markets, particularly in home appliances products.  The decrease in revenue of packaging and testing services for the nine months ended March 31, 2025, as compared to same period last year, was primarily due to decreased demand.  The decrease in license and development services for the nine months ended March 31, 2025 was related to the license agreement with a customer to license our proprietary SiC technology and provided 24-month engineering and development services, which was completed during the three months ended March 31, 2025.

Cost of goods sold and gross profit

Three Months Ended March 31,Nine Months Ended March 31, 20252024Change20252024Change (in thousands)(in thousands)(in percentage)(in thousands)(in thousands)(in percentage)Cost of goods sold$129,458 $114,505 $14,953 13.1 %$399,964 $365,497 $34,467 9.4 %Percentage of revenue78.6 %76.3 %77.0 %73.7 %Gross profit$35,177 $35,555 $(378)(1.1)%$119,714 $130,481 $(10,767)(8.3)%Percentage of revenue21.4 %23.7 %23.0 %26.3 %

Cost of goods sold was $129.5 million for the three months ended March 31, 2025, an increase of $15.0 million or 13.1%, as compared to $114.5 million for the same quarter last year.  The increase was primarily due to 9.7% increase in sales.  Gross margin decreased by 2.3 percentage points to 21.4% for the three months ended March 31, 2025, as compared to 23.7% for the same quarter last year.  The decrease in gross margin was primarily due to average selling pricing erosion, higher material costs and less favorable product mix during the three months ended March 31, 2025.

Cost of goods sold was $400.0 million for the nine months ended March 31