1 unchanged sentence
Except for the historical information contained herein, the matters addressed in this Item 2 constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
−Removed: These forward looking statements include information set forth under the heading “Factors Affecting Our Performance”.
−Removed: Such forward-looking statements are subject to a variety of risks and uncertainties, including those discussed below under the heading “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, that could cause actual results to differ materially from those anticipated by the Company’s management.
+Added: These forward looking statements include information set forth under the heading “Factors Affecting Our Performance.” Such forward-looking statements are subject to a variety of risks and uncertainties, including those discussed below under the heading “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, that could cause actual results to differ materially from those anticipated by the Company’s management.
The Private Securities Litigation Reform Act of 1995 (the “Act”) provides certain “safe harbor” provisions for forward-looking statements.
5 unchanged sentences
Our portfolio of power semiconductors includes approximately 2,700 products, and has grown significantly with the introduction of over 100 new products in the fiscal year ended June 30, 2024, and over 60 and 130 new products in the fiscal years ended June 30, 2023 and 2022, respectively.
−Removed: During the six months ended December 31, 2024, we introduced 55 new products.
+Added: During the nine months ended March 31, 2025, we introduced 75 new products.
Our teams of scientists and engineers have developed extensive intellectual property and technical knowledge that encompass major aspects of power semiconductors, which we believe enables us to introduce and develop innovative products to address the increasingly complex power requirements of advanced electronics.
−Removed: We have an extensive patent portfolio that consists of 940 patents and 58 patent applications in the United States as of December 31, 2024.
−Removed: We also have a total of 1,050 foreign patents, which were based primarily on our research and development efforts through December 31, 2024.
+Added: We have an extensive patent portfolio that consists of 946 patents and 63 patent applications in the United States as of March 31, 2025.
+Added: We also have a total of 1,054 foreign patents, which were based primarily on our research and development efforts through March 31, 2025.
We differentiate ourselves by integrating our expertise in technology, design and advanced manufacturing and packaging to optimize product performance and cost.
7 unchanged sentences
We believe our in-house packaging and testing capability provides us with a competitive advantage in proprietary packaging technology, product quality, cost and sales cycle time.
−Removed: During the fiscal quarter ended December 31, 2024, we continued our product diversification program by developing new silicon and packaging platforms to expand our serviceable available market, or SAM and offer higher performance products.
+Added: During the fiscal quarter ended March 31, 2025, we continued our product diversification program by developing new silicon and packaging platforms to expand our serviceable available market, or SAM, and offer higher performance products.
Our metal-oxide-semiconductor field-effect transistors, or MOSFET, and power IC product portfolio also expanded.
−Removed: As of December 31, 2024, we owned approximately 42.8% of outstanding equity interest in a joint venture company (the “JV Company”) that operates a power semiconductor packaging, testing and 12-inch wafer fabrication facility (“Fab”) in the LiangJiang New Area of Chongqing, China, and we relied on the Fab to manufacture wafers to develop our products.
+Added: As of March 31, 2025, we owned approximately 39.2% of outstanding equity interest in a joint venture company (the “JV Company”) that operates a power semiconductor packaging, testing and 12-inch wafer fabrication facility (“Fab”) in the LiangJiang New Area of Chongqing, China, and we relied on the Fab to manufacture wafers to develop our products.
On December 30, 2024, the JV Company signed an investment agreement with an investor, pursuant to which the investor agreed to invest RMB 500 million (or $68.5 million based on currency exchange rate between RMB and U.S.
3 unchanged sentences
The remaining installments are expected to be paid by July 31, 2025.
−Removed: This transaction was considered as closed when the JV Company completed the registration of the issuance of equity interest to the investor with the local government authority on January 15, 2025, at which time, the percentage of outstanding JV Company’s equity interest owned by the Company was reduced to approximately 39.2%.
+Added: This transaction closed on January 15, 2025, at which time, the percentage of outstanding JV Company’s equity interest owned by the Company was reduced to approximately 39.2%.
In the past three years, we have been reducing our ownership of the JV Company to increase the flexibility of the JV Company to raise capital to fund its future expansion.
−Removed: The JV Company is also contemplating an eventual listing on the Science and Technology Innovation Board, or STAR Market, of the Shanghai Stock Exchange.
+Added: The JV Company is also contemplating an eventual listing on the
+Added: Science and Technology Innovation Board, or STAR Market, of the Shanghai Stock Exchange.
The reduction of our ownership assists the JV Company in meeting certain regulatory listing requirements.
17 unchanged sentences
While we can mitigate these constraints by increasing and re-allocating capacity at our own fab, we may not be able to do so quickly or at sufficient level, which could adversely affect our financial conditions and results of operations.
−Removed: We also rely on the JV Company to provide foundry capacity to manufacture our products, therefore it is important that we maintain continuous access to such capacity, which may not be available at sufficient level or at pricing terms favorable to us because of lack of control over the JV Company’s operation.
−Removed: We continue to maintain a business relationship with the JV Company to ensure uninterrupted supply of manufacturing capacity.
−Removed: Because we continue to rely on the JV Company to provide us with manufacturing capacity, if the JV Company take actions or make decisions that prevents us from accessing required capacity, our operations may be adversely affected.
+Added: We also rely on third parties to provide foundry capacity to manufacture our products, including the JV Company, therefore it is important that we maintain continuous access to such capacity, which may not be available at sufficient level or at pricing terms favorable.
+Added: If these third-party foundries, including the JV Company, take actions or make decisions that prevents us from accessing required capacity, our operations may be adversely affected.
Erosion and fluctuation of average selling price:
12 unchanged sentences
As a result, our revenue and operating results may fluctuate significantly from quarter to quarter.
−Removed: because our products are used in consumer electronics products, our revenue is subject to seasonality.
−Removed: Our sales seasonality is affected by numerous factors, including global and regional economic conditions as well as the PC market conditions, revenue generated from new products, changes in distributor ordering patterns in response to channel inventory adjustments and end customer demand for our products and fluctuations in consumer purchase patterns prior to major holiday seasons.
+Added: In addition, because our products are used in consumer electronics products, our revenue is subject to seasonality.
+Added: Our sales seasonality is affected by numerous factors, including global and regional economic conditions as well as the PC market conditions, revenue
+Added: generated from new products, changes in distributor ordering patterns in response to channel inventory adjustments and end customer demand for our products and fluctuations in consumer purchase patterns prior to major holiday seasons.
Typically, we generate lower revenue during the first quarter of the calendar year as compared to other quarters.
14 unchanged sentences
We estimate the price adjustments for inventory at the distributors based on factors such as distributor inventory levels, forecasted distributor selling prices, distributor margins and demand for our products.
−Removed: In February 2023, we entered into a license agreement with a customer to license our proprietary SiC technology and to provide 24-months of engineering and development services for a total fee of $45.0 million, consisting of an upfront fee and milestone payments of $18.0 million, $6.8 million and $9.0 million paid to us in the March 2023, July 2023 and February 2024, respectively, with the remaining amount to be paid upon the achievement of specified engineering services and product milestones.
−Removed: The license and development fee is determined to be one performance obligation and is recognized over the 24 months during which we perform the engineering and development services.
−Removed: We use the input method to measure progression of the transfer of services.
−Removed: During the three and six months ended December 31, 2024, we recorded $5.4 million and $11.0 million of license and development revenue, respectively, and during the three and the six months ended December 31, 2023, we recorded $5.5 million and $11.1 million of license and development revenue, respectively.
−Removed: As of December 31, 2024, we had recorded a total of $42.2 million of license and development revenue.
−Removed: When our performance under the contract precedes our receipt of consideration from the customer, and the receipt of consideration is conditional upon factors other than the passage of time, a contract asset is recorded.
−Removed: We also entered an accompanying supply agreement to provide limited wafer supply to the customer.
+Added: In February 2023, we entered into a license agreement with a customer to license our proprietary SiC technology and provided 24-months of engineering and development services for a total fee of $45.0 million.
+Added: The license and development fee was determined to be one performance obligation and was recognized over the 24 months during which we performed the engineering and development services.
+Added: We used the input method to measure progression of the transfer of services.
+Added: During the three and nine months ended March 31, 2025, we recorded $2.8 million and $13.8 million of license and development revenue, respectively, and during the three and the nine months ended March 31, 2024, we recorded $5.1 million and $16.2 million of license and development revenue, respectively.
+Added: As of March 31, 2025, we had recorded a total of $45.0 million of license and development revenue.
+Added: When our performance under the contract preceded our receipt of consideration from the customer, and the receipt of consideration was conditional upon factors other than the passage of time, a contract asset was recorded.
+Added: We also entered into an accompanying supply agreement to provide limited wafer supply to the customer.
Cost of goods sold
12 unchanged sentences
Selling, general and administrative expenses.
−Removed: Our selling, general and administrative expenses consist primarily of salaries, bonuses, benefits, share-based compensation expense, product promotion costs, occupancy costs, travel expenses, expenses related to sales and marketing activities, amortization of software, depreciation of equipment, maintenance costs and other expenses for general and administrative functions as well as costs for outside professional services, including legal, audit and accounting services.
+Added: Our selling, general and administrative expenses consist primarily of salaries, bonuses, benefits, share-based compensation expense, product promotion costs, occupancy costs, travel expenses,
+Added: expenses related to sales and marketing activities, amortization of software, depreciation of equipment, maintenance costs and other expenses for general and administrative functions as well as costs for outside professional services, including legal, audit and accounting services.
We expect our selling, general and administrative expenses to fluctuate in the near future as we continue to exercise cost control measures.
42 unchanged sentences
Results of Operations
−Removed: The following tables set forth statements of income (loss), also expressed as a percentage of revenue, for the three and six months ended December 31, 2024 and 2023.
+Added: The following tables set forth statements of income (loss), also expressed as a percentage of revenue, for the three and nine months ended March 31, 2025 and 2024.
Our historical results of operations are not necessarily indicative of the results for any future period.
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 2025 2024 2025 2024 2025 2024
8 unchanged sentences
Total operating expenses 45,835 46,059 27.8 % 30.7 % 136,532 132,738 26.2 % 26.7 %
−Removed: Operating income (loss)
−Removed: (5,908) (1,134) (3.4) % (0.7) % (6,160) 8,247 (1.8) % 2.4 %
+Added: Operating loss (10,658) (10,504) (6.4) % (7.0) % (16,818) (2,257) (3.2) % (0.4) %
Other income (loss), net (65) 308 — % 0.2 % (52) (138) 0.0 % — %
1 unchanged sentence
Interest expenses (596) (959) (0.4) % (0.6) % (2,109) (3,099) (0.4) % (0.6) %
−Removed: Net income (loss) before income taxes and loss from equity method investment (4,811) (1,332) (2.8) % (0.8) % (5,260) 8,304 (1.5) % 2.4 %
+Added: Gain on change of equity interest in equity method investment 505 — 0.3 % — % 505 — 0.1 % — %
+Added: Net loss before income taxes and loss from equity method investment (9,887) (9,925) (6.0) % (6.6) % (15,147) (1,621) (2.9) % (0.2) %
Income tax expense 660 611 0.4 % 0.4 % 2,942 2,643 0.6 % 0.5 %
−Removed: Net income (loss) before loss from equity method investment (6,053) (2,226) (3.5) % (1.3) % (7,542) 6,272 (2.1) % 1.8 %
+Added: Net loss before loss from equity method investment (10,547) (10,536) (6.4) % (7.0) % (18,089) (4,264) (3.5) % (0.7) %
Equity method investment loss from equity investee (260) (676) (0.2) % (0.5) % (1,828) (4,085) (0.3) % (0.8) %
−Removed: Net income (loss) $ (6,614) $ (2,923) (3.8) % (1.7) % $ (9,110) $ 2,863 (2.6) % 0.8 %
+Added: Net loss $ (10,807) $ (11,212) (6.6) % (7.5) % $ (19,917) $ (8,349) (3.8) % (1.5) %
Share-based compensation expense was recorded as follows:
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 2025 2024 2025 2024 2025 2024
4 unchanged sentences
Total $ 7,136 $ 8,465 4.3 % 5.6 % $ 21,988 $ 18,074 4.3 % 3.6 %
−Removed: Three and Six Months Ended December 31, 2024 and 2023
+Added: Three and Nine Months Ended March 31, 2025 and 2024
The following is a summary of revenue by product type:
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 Change 2025 2024 Change
7 unchanged sentences
The following is a summary of revenue by end market:
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 2025 2024 2025 2024 2025 2024
8 unchanged sentences
$ 164,635 $ 150,060 100.0 % 100.0 % $ 519,678 $ 495,978 100.0 % 100.0 %
−Removed: Total revenue was $173.2 million for the three months ended December 31, 2024, an increase of $7.9 million, or 4.8% as compared to $165.3 million for the same quarter last year.
−Removed: The increase was primarily due to an increase of $4.2 million and $3.4 million in sales of power discrete products and sales of power IC products, respectively, as well as an increase of $0.3 million in packaging and testing services and other, partially offset by a decrease of $0.1 million in license and development services.
+Added: Total revenue was $164.6 million for the three months ended March 31, 2025, an increase of $14.6 million, or 9.7% as compared to $150.1 million for the same quarter last year.
+Added: The increase was primarily due to an increase of $13.0 million and $4.6 million in sales of power discrete products and sales of power IC products, respectively, offset by a decrease of $0.8 million in packaging and testing services and other, as well as a decrease of $2.3 million in license and development services.
The net increase in power discrete and power IC product sales was primarily due to a 17.3% increase in unit shipment, partially offset by a 4.3% decrease in average selling price as compared to same quarter last year due to a shift in product mix.
−Removed: The net increase in revenues was primarily driven by a significant increase in the computing markets, particularly in graphics cards products, as well as an increase in the communication markets, particular in battery, partially offset by a decrease in consumer markets, particularly in home appliances products.
−Removed: The increase in revenue of packaging and testing services for the three months ended December 31, 2024, as compared to same quarter last year, was primarily due to increased demand.
−Removed: The decrease in license and development services for the three months ended December 31, 2024 was related to the license agreement with a customer to license our proprietary SiC technology and to provide 24-month engineering and development services.
−Removed: Total revenue was $355.0 million for the six months ended December 31, 2024, an increase of $9.1 million, or 2.6%, as compared to $345.9 million for the same period last year.
−Removed: The increase was primarily due to an increase of $5.1 million and $3.6 million in sales of power discrete products and sales of power IC products, respectively, as well as an increase of $0.4 million in packaging and testing services and other, partially offset by a decrease of $0.1 million in license and development services.
+Added: The net increase in revenues was primarily driven by a significant increase in the computing markets, particularly in graphics cards products and tablet products, as well as an increase in the power supply and industrial markets, particular in E-mobility products and quick chargers products, partially offset by a decrease in consumer markets, particularly in home appliances products.
+Added: The decrease in revenue of packaging and testing services for the three months ended March 31, 2025, as compared to same quarter last year, was primarily due to decreased demand.
+Added: The decrease in license and development services for the three months ended March 31, 2025 was related to the license agreement with a customer to license our proprietary SiC technology and provided 24-month engineering and development services, which was completed during the three months ended March 31, 2025.
+Added: Total revenue was $519.7 million for the nine months ended March 31, 2025, an increase of $23.7 million, or 4.8%, as compared to $496.0 million for the same period last year.
+Added: The increase was primarily due to an increase of $18.1 million and $8.2 million in sales of power discrete products and sales of power IC products, respectively, partially offset by a decrease of $0.3 million in packaging and testing services and other, as well as a decrease of $2.3 million in license and development services.
The net increase in power discrete and power IC product sales was primarily due to a 17.2% increase in unit shipment, partially offset by a 9.8% decrease in average selling price as compared to same period last year due to a shift in product mix.
−Removed: The net increase in revenues was primarily driven by a significant increase in the computing markets, particularly in graphics cards products, as well as an increase in the communication markets, particular in battery and mobile phone products, partially offset by a decrease in power supply and industrial markets, particularly in quick charger products.
−Removed: The increase in revenue of packaging and testing services for the six months ended December 31, 2024, as compared to same period last year, was primarily due to increased demand.
−Removed: The decrease in license and development services for the six months ended December 31, 2024 was related to the license agreement with a customer to license our proprietary SiC technology and to provide 24-month engineering and development services.
+Added: The net increase in revenues was primarily driven by a significant increase in the computing markets, particularly in graphics cards products and tablet products, as well as an increase in the communication markets, particular in battery and networking products, partially offset by a decrease in consumer markets, particularly in home appliances products.
+Added: The decrease in revenue of packaging and testing services for the nine months ended March 31, 2025, as compared to same period last year, was primarily due to decreased demand.
+Added: The decrease in license and development services for the nine months ended March 31, 2025 was related to the license agreement with a customer to license our proprietary SiC technology and provided 24-month engineering and development services, which was completed during the three months ended March 31, 2025.
Cost of goods sold and gross profit
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 Change 2025 2024 Change
4 unchanged sentences
Percentage of revenue 21.4 % 23.7 % 23.0 % 26.3 %
−Removed: Cost of goods sold was $133.1 million for the three months ended December 31, 2024, an increase of $11.9 million or 9.8%, as compared to $121.3 million for the same quarter last year.
+Added: Cost of goods sold was $129.5 million for the three months ended March 31, 2025, an increase of $15.0 million or 13.1%, as compared to $114.5 million for the same quarter last year.
The increase was primarily due to 9.7% increase in sales.
−Removed: Gross margin decreased by 3.5 percentage points to 23.1% for the three months ended December 31, 2024, as compared to 26.6% for the same quarter last year.
−Removed: The decrease in gross margin was primarily due to average selling pricing erosion, higher material costs and less favorable product mix during the three months ended December 31, 2024.
−Removed: Cost of goods sold was $270.5 million for the six months ended December 31, 2024, an increase of $19.5 million, or 7.8%, as compared to $251.0 million for the same period last year.
+Added: Gross margin decreased by 2.3 percentage points to 21.4% for the three months ended March 31, 2025, as compared to 23.7% for the same quarter last year.
+Added: The decrease in gross margin was primarily due to average selling pricing erosion, higher material costs and less favorable product mix during the three months ended March 31, 2025.
+Added: Cost of goods sold was $400.0 million for the nine months ended March 31, 2025, an increase of $34.5 million, or 9.4%, as compared to $365.5 million for the same period last year.
The increase was primarily due to 4.8% increase in sales.
−Removed: Gross margin decreased by 3.6 percentage points to 23.8% for the six months ended December 31, 2024, as compared to 27.4% for the same period last year.
+Added: Gross margin decreased by 3.3 percentage points to 23.0% for the nine months ended March 31, 2025, as compared to 26.3% for the same period last year.
The decrease in gross margin was primarily due to average selling price erosion, higher material costs and less favorable product mix during the periods.
Research and development expenses
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 Change 2025 2024 Change
1 unchanged sentence
Research and development expenses $ 23,398 $ 23,095 $ 303 1.3 % $ 69,844 $ 68,127 $ 1,717 2.5 %
−Removed: Research and development expenses were $24.0 million for the three months ended December 31, 2024, an increase of $1.0 million, or 4.6%, as compared to $22.9 million for the same quarter last year.
−Removed: The increase was primarily attributable to a $0.5 million increase in employee compensation and benefit expense mainly due to higher bonus expense, as well as a $0.7 million increase in product prototyping engineering expense as a result of increased engineering activities, partially offset by a $0.2 million decrease in share-based compensation expense primarily due to less ESPP expenses in current quarter.
−Removed: Research and development expenses were $46.4 million for the six months ended December 31, 2024, an increase of $1.4 million, or 3.1%, as compared to $45.0 million for the same period last year.
−Removed: The increase was primarily attributable to a $1.7 million increase in share-based compensation as a result of a modification of market-based restricted stock units in August 2024, partially offset by a $0.2 million decrease in product prototyping engineering expense as a result of decreased engineering activities, as well as a $0.1 million decrease in employee compensation and benefit expense mainly due to less headcount, partially offset by higher business and medical insurance expenses.
+Added: Research and development expenses were $23.4 million for the three months ended March 31, 2025, an increase of $0.3 million, or 1.3%, as compared to $23.1 million for the same quarter last year.
+Added: The increase was primarily attributable to a $0.5 million increase in employee compensation and benefit expense mainly due to higher bonus expense and higher severance expenses, as well as a $0.2 million increase in product prototyping engineering expense as a result of increased engineering activities, partially offset by a $0.3 million decrease in share-based compensation expense primarily due to more cancellation of awards in current quarter.
+Added: Research and development expenses were $69.8 million for the nine months ended March 31, 2025, an increase of $1.7 million, or 2.5%, as compared to $68.1 million for the same period last year.
+Added: The increase was primarily attributable to a $1.4 million increase in share-based compensation as a result of a modification of market-based restricted stock units in August 2024, as well as a $0.4 million increase in employee compensation and benefit expense mainly due to higher bonus expense and higher severance expenses.
Selling, general and administrative expenses
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 Change 2025 2024 Change
1 unchanged sentence
Selling, general and administrative $ 22,437 $ 22,964 $ (527) (2.3) % $ 66,688 $ 64,611 $ 2,077 3.2 %
−Removed: Selling, general and administrative expenses were $22.0 million for the three months ended December 31, 2024, a decrease of $0.3 million, or 1.2%, as compared to $22.2 million for the same quarter last year.
−Removed: The decrease was primarily due to a $0.1 million decrease in share-based compensation expense as a result of less ESPP expenses, a $0.4 million decrease in audit fees, and $0.3 million decrease in consulting fees, partially offset by $0.6 million increase in employee compensation and benefits expenses primarily due to increased headcount.
−Removed: Selling, general and administrative expenses were $44.3 million for the six months ended December 31, 2024, an increase of $2.6 million, or 6.3%, as compared to $41.6 million for the same period last year.
−Removed: The increase was primarily attributable to a $3.1 million increase in share-based compensation as a result of a modification of market-based restricted stock units in August 2024, and $0.8 million increase in employee compensation and benefits expenses primarily due to increased headcount, partially offset by $0.8 million decrease in audit fees and $0.4 million decrease in consulting fees.
+Added: Selling, general and administrative expenses were $22.4 million for the three months ended March 31, 2025, a decrease of $0.5 million, or 2.3%, as compared to $23.0 million for the same quarter last year.
+Added: The decrease was primarily due to a $0.7 million decrease in share-based compensation expense as a result of more cancellation of awards, a $0.5 million decrease in design-win commission and marketing demo fees, and $0.4 million decrease in allocation, partially offset by $0.2 million increase in legal expenses, as well as $0.9 million increase in employee compensation and benefits expenses primarily due to increased headcount, higher bonus expense, as well as higher severance expenses.
+Added: Selling, general and administrative expenses were $66.7 million for the nine months ended March 31, 2025, an increase of $2.1 million, or 3.2%, as compared to $64.6 million for the same period last year.
+Added: The increase was primarily attributable to a $2.4 million increase in share-based compensation as a result of a modification of market-based restricted stock units in August 2024, and $1.7 million increase in employee compensation and benefits expenses primarily due to increased headcount, higher bonus expense, as well as higher severance expenses, partially offset by $0.7 million decrease in audit fees, a $0.6 million decrease in design-win commission and marketing demo fees, $0.4 million decrease in consulting fees, and $0.4 million decrease in allocation.
Other income (loss), net
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 Change 2025 2024 Change
1 unchanged sentence
Other income (loss), net $ (65) $ 308 $ (373) (121.1) % $ (52) $ (138) $ 86 (62.3) %
−Removed: Other income (loss), net was increased in the three and six months ended December 31, 2024 as compared to the same periods last year primarily due to decrease in foreign currency exchange loss as a result of the depreciation of RMB against USD.
+Added: Other income (loss), net decreased in the three and nine months ended March 31, 2025, as compared to the same periods last year primarily due to an increase in foreign currency exchange loss as a result of the appreciation of RMB against USD.
Interest income
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 Change 2025 2024 Change
1 unchanged sentence
Interest income $ 927 $ 1,230 $ (303) (24.6) % $ 3,327 $ 3,873 $ (546) (14.1) %
−Removed: Interest income was decreased in the three and six months ended December 31, 2024 as compared to the same periods last year primarily due to lower interest rates in the current periods.
+Added: Interest income decreased in the three and nine months ended March 31, 2025, as compared to the same periods last year primarily due to lower interest rates in the current periods.
Interest expense
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
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1 unchanged sentence
Interest expenses $ (596) $ (959) $ 363 (37.9) % $ (2,109) (3,099) $ 990 (31.9) %
−Removed: Interest expense was decreased in the three and six months ended December 31, 2024 as compared to the same periods last year primarily due to less outstanding loan balance in the current periods.
+Added: Interest expense was decreased in the three and nine months ended March 31, 2025 as compared to the same periods last year primarily due to less outstanding loan balance in the current periods.
+Added: Gain on change of equity interest in equity method investment
+Added: Three Months Ended March 31, Nine Months Ended March 31,
+Added: 2025 2024 Change 2025 2024 Change
+Added: (in thousands) (in thousands) (in percentage) (in thousands) (in thousands) (in percentage)
+Added: Gain on change of equity interest in equity method investment $ 505 $ — $ 505 100.0 % $ 505 $ — $ 505 100.0 %
+Added: On December 30, 2024, the JV Company signed an investment agreement with an investor, pursuant to which the investor agreed to invest RMB 500 million (or $68.5 million based on currency exchange rate between RMB and U.S.
+Added: Dollar on December 31, 2024) in the JV Company.
+Added: This transaction closed on January 15, 2025, at which time, the percentage of outstanding JV Company’s equity interest owned by the Company was reduced to approximately 39.2%.
+Added: During the three and nine months ended March 31, 2025, we recorded a $0.5 million of gain on the change of equity interest in the JV Company.
Income tax expense
−Removed: Three Months Ended December 31, Six Months Ended December 31,
+Added: Three Months Ended March 31, Nine Months Ended March 31,
2025 2024 Change 2025 2024 Change
1 unchanged sentence
Income tax expense $ 660 $ 611 $ 49 8.0 % $ 2,942 $ 2,643 $ 299 11.3 %
−Removed: The Company recognized income tax expense of approximately $1.2 million and $0.9 million for the three months ended December 31, 2024 and 2023, respectively.
−Removed: The income tax expense of $1.2 million for the three months ended December 31, 2024 included a $0.1 million discrete tax expense.
−Removed: The income tax expense of $0.9 million for the three months ended December 31, 2023 included a $0.1 million discrete tax expense.
−Removed: Excluding the discrete income tax items, the income tax expense for the three months ended December 31, 2024 and 2023 was $1.2 million and $0.8 million, respectively, and the effective tax rate for the three months ended December 31, 2024 and 2023 was (22.1)% and (41.2%), respectively.
−Removed: The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $5.4 million for the three months ended December 31, 2024 as compared to $2.0 million of pretax book loss for the three months ended December 31, 2023.
−Removed: The Company recognized income tax expense of approximately $2.3 million and $2.0 million for the six months ended December 31, 2024 and 2023, respectively.
−Removed: The income tax expense of $2.3 million for the six months ended December 31, 2024 included a $0.1 million discrete tax expense.
−Removed: The income tax expense of $2.0 million for the six months ended December 31, 2023 included a $0.1 million discrete tax expense.
−Removed: Excluding the discrete income tax items, the income tax expense for the six months ended December 31, 2024 and 2023 was $2.1 million and $1.9 million, respectively, and the effective tax rate for the six months ended December 31, 2024 and 2023 was (31.4%) and 39.2%, respectively.
−Removed: The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $6.8 million for the six months ended December 31, 2024 as compared to $4.9 million of pretax book income for the six months ended December 31, 2023.
+Added: The Company recognized income tax expense of approximately $0.7 million and $0.6 million for the three months ended March 31, 2025 and 2024, respectively.
+Added: The income tax expense of $0.7 million for the three months ended March 31, 2025 included a $0.1 million discrete tax expense.
+Added: The income tax expense of $0.6 million for the three months ended March 31, 2024 included a $0.1 million discrete tax expense.
+Added: Excluding the discrete income tax items, the income tax expense for the three months ended March 31, 2025 and 2024 was $0.6 million and $0.6 million, respectively, and the effective tax rate for the three months ended March 31, 2025 and 2024 was (5.8)% and (5.3%), respectively.
+Added: The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year.
+Added: The Company recognized income tax expense of approximately $2.9 million and $2.6 million for the nine months ended March 31, 2025 and 2024, respectively.
+Added: The income tax expense of $2.9 million for the nine months ended March 31, 2025
+Added: included a $0.2 million discrete tax expense.
+Added: The income tax expense of $2.6 million for the nine months ended March 31, 2024 included a $0.2 million discrete tax expense.
+Added: Excluding the discrete income tax items, the income tax expense for the nine months ended March 31, 2025 and 2024 was $2.7 million and $2.5 million, respectively, and the effective tax rate for the nine months ended March 31, 2025 and 2024 was (16.1%) and (43.4%), respectively.
+Added: The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $17.0 million for the nine months ended March 31, 2025 as compared to $5.7 million of pretax book loss for the nine months ended March 31, 2024.
The Company files its income tax returns in the United States and in various foreign jurisdictions.
5 unchanged sentences
These assessments can require considerable estimates and judgments.
−Removed: As of December 31, 2024,
−Removed: the gross amount of unrecognized tax benefits was approximately $10.2 million, of which $7.0 million, if recognized, would reduce the effective income tax rate in future periods.
+Added: As of March 31, 2025, the gross amount of unrecognized tax benefits was approximately $10.3 million, of which $7.0 million, if recognized, would reduce the effective income tax rate in future periods.
If the Company’s estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required.
8 unchanged sentences
The Company could borrow up to approximately RMB 140 million or $19.3 million based on currency exchange rate between RMB and U.S.
−Removed: Dollar on December 31, 2024 with a maturity date of March 15, 2025 .
−Removed: As of December 31, 2024, there was no outstanding balance for this loan.
−Removed: In December 2023, Industrial and Commercial Bank of China provided a line of credit facility to one of the Company's
−Removed: subsidiaries in China.
−Removed: The purpose of the credit facility was to provide working capital borrowings.
−Removed: The Company could borrow up to approximately RMB 72.0 million, or $9.9 million based on currency exchange rate between RMB and U.S.
−Removed: Dollar on December 31, 2024, with a maturity date of December 31, 2024.
−Removed: As of December 31, 2024, there was no outstanding balance for this loan and this loan expired .
+Added: Dollar on March 31, 2025.
+Added: This line of credit expired on March 15, 2025.
+Added: As of March 31, 2025, there was no outstanding balance for this loan.
In September 2023, China Construction Bank provided a line of credit facility to one of the Company’s subsidiaries in
1 unchanged sentence
The Company could borrow up to approximately RMB 50 million or $6.9 million based on currency exchange rate between RMB and U.S.
−Removed: Dollar on December 31, 2024 with a maturity date of September 8, 2025.
−Removed: As of December 31, 2024, there was no outstanding balance for this loan.
−Removed: On February 6, 2023, we entered into a license and engineering service agreement with a leading power semiconductor automotive supplier related to our Silicon Carbide (SiC) MOSFET and diode technology.
−Removed: Pursuant to the agreement, we license and provide 24-month engineering support for our proprietary SiC technology to the supplier for a total fee of $45.0 million, consisted of an upfront fee and milestone payments of $18.0 million, $6.8 million and $9.0 million paid to us in the March, July 2023 and February 2024, respectively, and the remaining amount to be paid upon our achievements of specified business and product milestones.
−Removed: In addition, we entered an accompanying supply agreement with the supplier to provide it with limited wafer supply.
+Added: Dollar on March 31, 2025 with a maturity date of September 8, 2025.
+Added: As of March 31, 2025, there was no outstanding balance for this loan.
In September 2021, Jireh Semiconductor Incorporated (“Jireh”), one of the wholly-owned subsidiaries, entered into a financing arrangement agreement with a company (“Lender”) for the lease and purchase of a machinery equipment manufactured by a supplier.
11 unchanged sentences
The purchase price of this hardware was $0.2 million.
−Removed: The financing arrangement is secured by this equipment and other equipment which had the net book value of $12.8 million as of December 31, 2024.
−Removed: As of December 31, 2024, the outstanding balance of this debt financing was $7.9 million.
+Added: The financing arrangement is secured by this equipment and other equipment at Jireh, which had the net book value of $12.5 million as of March 31, 2025.
+Added: As of March 31, 2025, the outstanding balance of this debt financing was $7.2 million.
On August 18, 2021, Jireh entered into a term loan agreement with a financial institution (the “Bank”) in an amount up to $45.0 million for the purpose of expanding and upgrading the Company’s fabrication facility located in Oregon.
−Removed: The obligation under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company.
−Removed: The agreement has a
−Removed: 5.5 year term and matures on February 16, 2027.
+Added: The obligation
+Added: under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company.
+Added: The agreement has a 5.5 year term and matures on February 16, 2027.
Jireh is required to make consecutive quarterly payments of principal and interest.
2 unchanged sentences
Jireh drew down $45.0 million on February 16, 2022 with the first payment of principal beginning in October 2022.
−Removed: As of December 31, 2024, Jireh was in compliance with these covenants and the outstanding balance of this loan w as $24.7 million.
+Added: As of March 31, 2025, Jireh was in compliance with these covenants and the outstanding balance of this loan was $22.5 million.
On August 9, 2019, one of the Company’s wholly-owned subsidiaries (the “Borrower”) entered into a factoring agreement with Hongkong and Shanghai Banking Corporation Limited (“HSBC”), whereby the Borrower assigns certain of its accounts receivable with recourse.
7 unchanged sentences
Other terms remain the same.
−Removed: As of December 31, 2024, the Borrower was in compliance with these covenants.
−Removed: As of December 31, 2024, there was no outstanding balance and the Company had unused credit of approximately $8.0 million.
+Added: As of March 31, 2025, the Borrower was in compliance with these covenants.
+Added: As of March 31, 2025, there was no outstanding balance and the Company had unused credit of approximately $8.0 million.
We believe that our current cash and cash equivalents and cash flows from operations will be sufficient to meet our anticipated cash needs, including working capital and capital expenditures, for at least the next twelve months.
5 unchanged sentences
Cash, cash equivalents and restricted cash
−Removed: As of December 31, 2024 and June 30, 2024, we h a d $182.8 million and $175.5 million of cash, cash equivalents and restricted cash, respectively.
+Added: As of March 31, 2025 and June 30, 2024, we h a d $169.6 million and $175.5 million of cash, cash equivalents and restricted cash, respectively.
Our cash, cash equivalents and restricted cash primarily consist of cash on hand, restricted cash, and short-term bank deposits with original maturities of three months or less.
1 unchanged sentence
The following table shows our cash flows from operating, investing and financing activities for the periods indicated:
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
(in thousands)
−Removed: Net cash provided by (used in) operating activities $ 25,126 $ (9,628)
+Added: Net cash provided by operating activities $ 32,494 $ 18,591
Net cash used in investing activities (22,167) (28,593)
1 unchanged sentence
Effect of exchange rate changes on cash, cash equivalents and restricted cash (35) (83)
−Removed: Net increase (decrease) in cash, cash equivalents and restricted cash
−Removed: $ 7,258 $ (33,125)
+Added: Net decrease in cash, cash equivalents and restricted cash $ (5,974) $ (21,008)
Cash flows from operating activities
−Removed: For the six months ended December 31, 2024, the $34.8 million increase in cash provided by operating activities compared to the same period last year was primarily due to a decrease of $20.5 million in inventory purchases and a decrease of $13.2 million in other receivables related to a long-term wafer supply agreement.
−Removed: This increase was also affected by changes in other working capital.
+Added: For the nine months ended March 31, 2025, the $13.9 million increase in cash provided by operating activities compared to the same period last year was primarily due to an increase of net loss of $11.6 million and an increase of non-cash expenses of $8.6 million, a decrease of $22.5 million in inventory purchases, an increase of accounts payable of $9.9 million, and an increase of $6.1 million in accrued and other liabilities.
+Added: These sources of cash were offset by an increase of $25.1 million in accounts receivable.
+Added: This net increase was also affected by changes in other working capital.
Cash flows from investing activities
−Removed: For the six months ended December 31, 2024, the $7.3 million decrease in cash used in investing activities compared to the same period last year was primarily due to less purchases of property and equipment in the six months ended December 31, 2024 compared to the same period last year.
+Added: For the nine months ended March 31, 2025, the $6.4 million decrease in cash used in investing activities compared to the same period last year was primarily due to less purchases of property and equipment in the nine months ended March 31, 2025 compared to the same period last year.
Cash flows from financing activities
−Removed: For the six months ended December 31, 2024, the $1.6 million increase in cash used in financing activities compared to the same period last year was primarily due to $1.1 million decrease in proceeds from exercise of stock options and ESPP, and $0.4 million increase in common shares acquired to settle withholding tax related to vesting of restricted stock.
+Added: For the nine months ended March 31, 2025, the $5.3 million increase in cash used in financing activities compared to the same period last year was primarily due to $2.1 million decrease in proceeds from exercise of stock options and ESPP, and $3.0 million increase in common shares acquired to settle withholding tax related to the release of restricted stock.
See Note 12 of the Notes to the Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for a description of commitments.
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.