ALPHA & OMEGA SEMICONDUCTOR LtdAOSL

ALPHA & OMEGA SEMICONDUCTOR Ltd Earnings Per Share Disclosure

10-KFiled Aug 28, 20252 min read
Net Income (Loss) Per Common Share
Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding, plus potential shares of common stock during the period. Potential shares of common stock include dilutive shares attributable to the assumed exercise of share options, employee share purchase plan shares and vesting of restricted stock units using the treasury stock method. Under the treasury stock method, potential common shares outstanding are not included in the computation of diluted net income (loss) per share if their effect is anti-dilutive.
The following table presents the calculation of basic and diluted net income (loss) per share:
 Year Ended June 30,  
 202520242023
(in thousands, except per share data)
Numerator:
Net income (loss) $(96,976)$(11,081)$12,364 
Denominator:
Basic:
Weighted average number of common shares used to compute basic net income (loss) per share29,405 28,236 27,552 
Diluted:
Weighted average number of common shares used to compute basic net income (loss) per share29,405 28,236 27,552 
Effect of potentially dilutive securities:
Stock options, RSUs and ESPP shares— — 1,976 
Weighted average number of common shares used to compute diluted net income (loss) per share29,405 28,236 29,528 
Net income (loss) per share:
Basic$(3.30)$(0.39)$0.45 
Diluted$(3.30)$(0.39)$0.42 
The following potential dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:
 Year Ended June 30,  
 202520242023
(in thousands)
Employee stock options and RSUs2,475 2,822 310 
ESPP629 1,019 309 
Total potential dilutive securities3,104 3,841 619 

Historical Timeline

Fiscal YearFiled
2025Aug 28, 2025Showing above
2019Aug 23, 2019

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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