Alpha & Omega Semiconductor reshuffles executive roles

In a recent move outlined in a filing with the Securities and Exchange Commission, Alpha & Omega Semiconductor Ltd (NASDAQ:AOSL) announced significant changes to its executive team. Dr. Mike F. Chang, previously serving as the Executive Chairman, stepped down from his role on Monday and was appointed as the Executive Vice President of Strategic Initiative.

Concurrent with his new appointment, Dr. Chang’s compensation package has been revised. Effective Monday, his annual base salary has been reduced to $425,000, and his target annual cash bonus is now set at 70% of this base salary. Moreover, Dr. Chang will receive an award of 22,500 time-vesting restricted share units (RSUs) and an equal number of performance-vesting RSUs, effective March 17, 2025, under the company’s 2018 Omnibus Incentive Plan. According to InvestingPro data, the company maintains strong financial health with a FAIR rating, despite recent market challenges.

The company’s Compensation Committee also approved a cash bonus plan for the calendar year 2025, targeting named executive officers. The plan is based on the attainment of specific performance goals related to non-GAAP earnings per share and revenue. Executives will receive a bonus only if minimum performance goals are met, with potential payouts ranging from 0% to a maximum percentage of their base salary. With analyst price targets ranging from $30 to $47, InvestingPro subscribers can access detailed analysis and 12 additional exclusive ProTips about AOSL’s future prospects.

Key executives, including CEO Stephen Chang, CFO Yifan Liang, EVP of Worldwide Sales and Business Development Bing Xue, COO Wenjun Li, and EVP of Strategic Initiative Mike Chang, have target bonuses set as a percentage of their base salaries, with maximum bonuses reaching up to 220% for the CEO.

The details of the new incentive plan will be further disclosed in the company’s upcoming Quarterly Report on Form 10-Q for the quarter ending March 31, 2025. This report is based on a press release statement.

In other recent news, Alpha Modus Holdings announced plans for a significant AI-powered retail expansion with its partner CashX, aiming for $75 million in annual advertising revenue. The company plans to deploy financial kiosks across 10,000 supermarket locations in California and Colorado, with a full rollout expected by the end of 2026. This expansion includes the integration of AI technology in the second half of 2025, offering services such as prepaid cards, cryptocurrency transactions, and remittance solutions. Meanwhile, Alpha & Omega Semiconductor reported its Q2 fiscal 2025 earnings, missing Wall Street expectations with earnings per share (EPS) of $0.09, below the forecasted $0.21, and revenue of $173.2 million, slightly below the anticipated $175.67 million. Despite the earnings miss, B.Riley maintained a Buy rating on the company with a $47 price target, while Benchmark raised its price target to $42, citing potential growth opportunities with NVIDIA (NASDAQ:NVDA)’s Blackwell product family. Analysts noted that Alpha & Omega’s focus on AI and power management remains strong, with expectations of revenue challenges continuing into Q3. The company projects Q3 revenue of $158 million and a non-GAAP gross margin of 22.5%, with a mid-term target of $1 billion in revenue focusing on AI, smartphones, and e-mobility as growth drivers.

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