Company: AOSL
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001387467-25-000066
Chunk: 74

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 74
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 we reduced our equity interest in the JV Company below 50% of outstanding equity ownership and experienced a loss of control of the JV Company.  As a result, we record our investment under equity method of accounting.  Since we are unable to obtain accurate financial information from the JV Company in a timely manner, we record our share of earnings or losses of such affiliate on a one quarter lag. 

We record our interest in the net earnings of the equity method investee, along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within earnings or loss from equity interests in the Consolidated Statements of Operations. Profits or losses related to intra-entity sales with the equity method investee are eliminated until realized by the investor or investee. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to them. Equity method goodwill is not amortized. Instead the total equity method investment balance, including equity method goodwill, is tested for impairment. In the fourth quarter of fiscal year 2025, the impairment loss of $76.8 million was recorded within equity method investment loss in the consolidated statement of operations.

Results of Operations 

The following tables set forth statements of income (loss), also expressed as a percentage of revenue, for the three months ended September 30, 2025 and 2024.  Our historical results of operations are not necessarily indicative of the results for any future period.Three Months Ended September 30, 2025202420252024(in thousands)(% of revenue)Revenue $182,501 $181,887 100.0 %100.0 %Cost of goods sold 139,656 137,361 76.5 %75.5 %Gross profit42,845 44,526 23.5 %24.5 %Operating expensesResearch and development24,145 22,478 13.2 %12.4 %Selling, general and administrative23,284 22,300 12.8 %12.3 %Total operating expenses47,429 44,778 26.0 %24.7 %Operating loss(4,584)(252)(2.5)%(0.2)%Other income (loss), net 2,468 (650)1.3 %(0.4)%Interest income892 1,