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SUNNYVALE - Alpha and Omega Semiconductor Limited (NASDAQ:AOSL), a semiconductor company with a market capitalization of $822 million, has reached a settlement with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) to resolve an investigation into the company’s export control practices, according to a press release statement.
The semiconductor company has agreed to pay $4.25 million to settle allegations related to export controls. For context, the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 2.57, according to InvestingPro data. The resolution concludes a government investigation that lasted more than five years and resulted in no criminal charges, only limited administrative export control charges.
AOS said the settlement will not impact its ongoing business operations, which generated revenue of $681 million in the last twelve months. The company noted it has strengthened its procedures and policies over the years to ensure compliance with export control regulations.
Alpha and Omega Semiconductor designs, develops and supplies power semiconductor products, including power MOSFETs, silicon carbide devices, and power management integrated circuits. The company’s products are used in various applications including personal computers, data centers, smartphones, and automotive electronics.
The settlement announcement comes as the semiconductor industry faces increased regulatory scrutiny around export controls, particularly regarding technology shipments to certain markets.
In other recent news, Alpha and Omega Semiconductor (AOS) reported its Q3 FY2025 earnings, revealing a non-GAAP EPS of -$0.10, which missed the forecast of $0.0033. The company’s revenue was $164.6 million, slightly below the expected $167.77 million, yet it marked a 9.7% year-over-year increase. Despite the earnings miss, the stock rose in aftermarket trading, indicating investor optimism. Stifel analysts maintained their Sell rating with an $18 price target for AOS, noting a recent revenue beat attributed to tariff-related pull-ins. They also mentioned a slightly higher revenue outlook for the upcoming quarter, but expressed concerns about limited near-term gross margin expansion. Additionally, AOS launched a new 25V MOSFET designed for data centers, which is expected to enhance thermal management and power density. The company also confirmed its first design win for an AI server power application, which is anticipated to ship in the second half of the year.
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