Alpha and Omega Semiconductor Q1 2027: AI Shift Halves Expected Loss
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The mix shift to AI and server power, now about 20% of revenue from 5.5% a year ago, halved the expected loss. Management guided December quarter revenue to about $180 million, counter-seasonal growth even as traditional PC sales fell sequentially.
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Alpha and Omega Semiconductor reported a non-GAAP loss of $0.07 per share for its fiscal first quarter of 2027, beating expectations against a consensus $0.14 loss. Revenue of $177.8 million edged past estimates even as the top line slipped from a year ago.
AI and server power solutions grew more than 250% year-over-year, lifting that segment to roughly 20% of total revenue. The improved mix pushed non-GAAP gross margin to 25.2%, the core reason the bottom line came in better than analysts expected.
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The traditional business remains a drag, with PC revenue down about 30% sequentially and the Consumer segment weaker on home appliances, gaming, and wearables. CEO Stephen Chang said elevated memory costs and component constraints continue to weigh on PC demand, with no near-term recovery expected.
Operating cash flow turned positive at $5.6 million, reversing the prior quarter's outflow. For fiscal Q2 2027, management guided revenue to approximately $180 million, counter-seasonal growth of about 10% year-over-year despite continued PC headwinds.
Mentioned: AOSL