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

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 11
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2,747 3,287 

10

ALPHA AND OMEGA SEMICONDUCTOR LIMITEDNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

5. Concentration of Credit Risk and Significant Customers 

The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures.  In some instances, the Company also obtains letters of credit from certain customers.  Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company’s credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis.  The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past.  The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available.Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts:Three Months Ended September 30,Percentage of revenue20252024Customer A21.8 %22.5 %Customer B53.8 %51.5 % September 30,2025June 30,2025Percentage of accounts receivableCustomer A *14.9 %Customer B 72.9 %52.3 %

* Less than 10%

11

ALPHA AND OMEGA SEMICONDUCTOR LIMITEDNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

6. Balance Sheet Components 

Accounts receivable, net:  September 30,2025June 30,2025(in thousands)Accounts receivable$75,851 $75,604 Less: Allowance for price adjustments(38,722)(40,802)Less: Allowance for credit losses(30)(30)Accounts receivable, net$37,099 $34,772 Inventories:  September 30,2025June 30,2025(in thousands)Raw materials$80,522 $81,341 Work-in-process96,373 91,591 Finished goods19,261 16,745