Alpha and Omega Semiconductor Limited announced a new share repurchase program that authorizes the company to buy back up to $30 million of its common shares. The program will be executed through open‑market purchases, private negotiations, or other methods, with funding drawn from the company’s cash reserves and operating cash flow. Management said the buyback reflects confidence in the company’s business strategy, financial performance, and the belief that the shares are undervalued.
The program follows a strong Q1 fiscal 2026 earnings report in which the company posted earnings per share of $0.13 versus an estimate of $0.12, a beat of $0.01 or 8.3%. Revenue reached $182.5 million, up $1.3 million or 0.7% above the $181.2 million consensus. The earnings beat was driven by disciplined cost control and a favorable product mix, while the revenue beat came from robust demand in the Power IC segment, which grew 37.3% year‑over‑year and now accounts for nearly 40% of total revenue.
Segment analysis shows that the Power IC business, a high‑margin line, was the primary growth engine, offsetting a modest decline in the Compute segment caused by delays in AI‑related projects. The Computing segment revenue rose 27.1% year‑over‑year and 4.6% sequentially, but the mix shift toward lower‑margin legacy products compressed the GAAP gross margin to 23.5% from 24.5% in the same quarter last year. Non‑GAAP gross margin fell to 24.1% from 25.5%, reflecting the impact of the mix shift and the company’s investment in higher‑margin Power ICs.
Management guided for Q2 fiscal 2026 revenue of approximately $160 million, plus or minus $10 million, indicating a sequential decline that reflects seasonal demand cycles and a temporary digestion phase in AI and graphics card markets. The company’s balance sheet remains strong, with cash exceeding debt and a current ratio of 3.29. A recent sale of a stake in a joint venture added roughly $94 million to cash, further bolstering liquidity and providing additional flexibility for future technology and capacity investments.
CEO Stephen Chang emphasized that the share repurchase program is part of a disciplined capital‑allocation strategy that balances returning value to shareholders with continued investment in high‑growth areas such as Power ICs and AI data‑center solutions. He noted that the company’s transformation from a component supplier to a total solutions provider is supported by the growing demand for power management in AI servers and next‑generation data centers, positioning Alpha and Omega for long‑term growth while maintaining a robust financial foundation.
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