Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 95

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 95
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 in accordance with generally accepted accounting principles, over the operating and financial policies of the company.  Effective December 2, 2021, 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 Condensed Consolidated Statements of Income (Loss).  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 or tested for impairment. Instead the total equity method investment balance, including equity method goodwill, is tested for impairment.  We review for impairment whenever factors indicate that the carrying amount of the investment is determined to be other than temporary.  In such a case, the decrease in value is recognized in the period the impairment occurs in the Condensed Consolidated Statements of Income (Loss).

Results of Operations 

The following tables set forth statements of income (loss), also expressed as a percentage of revenue, for the three and nine months ended March 31, 2025 and 2024.  Our historical results of operations are not necessarily indicative of the results for any future period.Three Months Ended March 31,Nine Months Ended March 31, 20252024202520242025202420252024(in thousands)(% of revenue)(in thousands)(% of revenue)Revenue $164,635 $150,060 100.0 %100.0 %$519,678 $495,978 100.0 %100.0 %Cost of goods sold 129,458 114,505 78.6 %76.3 %399,964 365,497 77.0 %73.7 %Gross profit35,177 35,555 21.4 %23.