Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 84

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 1A
Chunk 84
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 expose us to new risks and place significant strains on our management, operational, financial and other resources.

As part of the growth strategy to diversify our product portfolio and in response to the decline of the PC markets, we have been developing new technologies and products designed to penetrate into other markets and applications, including merchant power supplies, power supplies, flat panel TVs, smart phones, tablets, gaming consoles, lighting, datacom, telecommunications, home appliances and industrial motor controls.  However, there is no guarantee that these diversification efforts will be successful.  As a new entrant to some of these markets, we may face intense competition from existing and more established providers and encounter other unexpected difficulties, any of which may hinder or delay our efforts to achieve success.  In addition, our new products may have long design and sales cycles.  Therefore, if our diversification efforts fail to keep pace with the declining PC markets, we may not be able to alleviate its negative impact on our results of operations.

Our diversification into different market segments may place a significant strain on our management, operational, financial and other resources.  To manage this diversification effectively, we will need to take various actions, including:

•enhancing management information systems, including forecasting procedures;

•further developing our operating, administrative, financial and accounting systems and controls;

•managing our working capital and sources of financing;

•maintaining close coordination among our engineering, accounting, finance, marketing, sales and operations organizations;

•retaining, training and managing our employee base;

•enhancing human resource operations and improving employee hiring and training programs;

•realigning our business structure to more effectively allocate and utilize our internal resources;

•improving and sustaining our supply chain capability; and

•managing both our direct and distribution sales channels in a cost-efficient and competitive manner.

Our failure to execute any of the above actions successfully or timely may have an adverse effect on our business and financial results.

Our operating results may fluctuate from period to period due to many factors, which may make it difficult to predict our future performance.

Our periodic operating results may fluctuate as a result of a number of factors, many of which are beyond our control.  These factors include, among others:

•a deterioration in general demand for electronic products, particularly the PC market, as a result of global or regional financial crises and associated macro-economic slowdowns, and/or the cyclicality of the semiconductor industry;

•a deterioration in business conditions at our distributors and /or end customers;

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