ALPHA & OMEGA SEMICONDUCTOR LTD, 10-Q filed on 11/9/2017
Quarterly Report
v3.8.0.1
Document and Entity Information - shares
3 Months Ended
Sep. 30, 2017
Oct. 31, 2017
Document and Entity Information [Abstract]    
Entity Registrant Name ALPHA & OMEGA SEMICONDUCTOR Ltd  
Entity Central Index Key 0001387467  
Current Fiscal Year End Date --06-30  
Entity Filer Category Accelerated Filer  
Document Type 10-Q  
Document Period End Date Sep. 30, 2017  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   23,875,051
v3.8.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Current assets:    
Cash and cash equivalents $ 180,165 $ 115,708
Restricted cash 1,033 221
Accounts receivable, net 25,406 28,410
Inventories 79,187 76,254
Other current assets 6,415 4,883
Total current assets 292,206 225,476
Property, plant and equipment, net 158,973 139,387
Land use rights, net 8,941 8,804
Deferred income tax assets - long-term 4,568 4,594
Other long term assets 14,891 19,865
Total assets 492,582 398,408
Current liabilities:    
Accounts payable 60,140 63,134
Accrued liabilities 37,321 28,386
Income taxes payable 2,393 1,748
Deferred margin 942 814
Capital leases 837 828
Total current liabilities 101,633 94,910
Income taxes payable - long-term 931 922
Deferred income tax liabilities 2,736 2,659
Capital leases - long-term 659 866
Other long term liabilities 462 502
Total liabilities 106,421 99,859
Commitments and contingencies (Note 11)
Preferred shares, par value $0.002 per share:    
Authorized: 10,000 shares, issued and outstanding: none at September 30, 2017 and June 30, 2017 0 0
Common shares, par value $0.002 per share:    
Authorized: 50,000 shares, issued and outstanding: 29,640 shares and 24,038 shares, respectively at September 30, 2017 and 29,600 shares and 23,992 shares, respectively at June 30, 2017 59 59
Treasury shares at cost, 5,602 shares at September 30, 2017 and 5,608 shares at June 30, 2017 (49,791) (49,836)
Additional paid-in capital 208,336 206,332
Accumulated other comprehensive income 673 306
Retained earnings 113,238 113,909
Total Alpha and Omega Semiconductor Limited shareholder's equity 272,515 270,770
Noncontrolling interest 113,646 27,779
Total equity 386,161 298,549
Total liabilities and equity 492,582 398,408
Intangible Assets, Net (Including Goodwill) $ 13,003 $ 282
v3.8.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Sep. 30, 2017
Jun. 30, 2017
Common shares, par value (in dollars per share) $ 0.002 $ 0.002
Common shares, authorized (in shares) 50,000,000 50,000,000
Common stock, shares issued (in shares) 29,640,000 29,600,000
Common stock, shares outstanding (in shares) 24,038,000 23,992,000
Preferred stock, par value (in dollars per share) $ 0.002 $ 0.002
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Treasury shares (in shares) 5,602,000 5,608,000
v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Revenue $ 104,858 $ 97,362
Cost of goods sold 77,328 75,418
Gross profit 27,530 21,944
Operating expenses    
Research and development 8,325 7,019
Selling, general and administrative 14,615 11,183
Total operating expenses 22,940 18,202
Operating income 4,590 3,742
Interest income and other income (loss), net 40 (49)
Interest expense (17) (26)
Net income before income taxes 4,613 3,667
Income tax expense 1,274 1,237
Net income including noncontrolling interest 3,339 2,430
Net loss attributable to noncontrolling interest (1,461) (877)
Net income attributable to Alpha and Omega Semiconductor Limited $ 4,800 $ 3,307
Net income per common share attributable to Alpha and Omega Semiconductor Limited    
Basic (in dollars per share) $ 0.20 $ 0.14
Diluted (in dollars per share) $ 0.19 $ 0.14
Weighted average number of common shares attributable to Alpha and Omega Semiconductor Limited used to compute net income per share    
Basic (in shares) 24,021 23,031
Diluted (in shares) 24,960 24,413
v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Net income including noncontrolling interest $ 3,339 $ 2,430
Net income attributable to Alpha and Omega Semiconductor Limited 4,800 3,307
Foreign currency translation adjustment 701 70
Comprehensive income 4,040 2,500
Noncontrolling interest (1,127) (898)
Comprehensive income attributable to Alpha and Omega Semiconductor Limited $ 5,167 $ 3,398
v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities    
Net income including noncontrolling interest $ 3,339 $ 2,430
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 6,978 6,503
Share-based compensation expense 2,008 1,316
Deferred income taxes, net 103 6,645
(Gain) loss on disposal of property and equipment 11 (377)
Changes in assets and liabilities:    
Accounts receivable, net 3,004 (465)
Inventories (2,932) (1,170)
Other current and long-term assets (3,202) (5,690)
Accounts payable (70) (2,804)
Income taxes payable 655 327
Accrued and other liabilities 2,356 2,582
Net cash provided by operating activities 12,250 9,297
Cash flows from investing activities    
Purchases of property and equipment excluding JV Company (7,118) (5,306)
Purchases of property and equipment in JV Company (21,171) (3,331)
Purchases of land use rights in JV Company 0 (8,737)
Payments to acquire intangible assets (5,720) 0
Proceeds from sale of property and equipment 0 417
Increase in restricted cash (812) (37)
Net cash used in investing activities (34,821) (16,994)
Cash flows from financing activities    
Proceeds from investment by noncontrolling interest 86,994 33,000
Withholding tax on restricted stock units (129) (132)
Proceeds from exercise of stock options 179 6,011
Principal payments on capital leases (198) (215)
Net cash provided by financing activities 86,846 38,664
Effect of exchange rate changes on cash and cash equivalents 182 33
Net increase in cash and cash equivalents 64,457 31,000
Cash and cash equivalents at beginning of period 115,708 87,774
Cash and cash equivalents at end of period 180,165 118,774
Supplemental disclosures of non-cash investing and financing information:    
Property and equipment purchased but not yet paid 23,894 5,226
Re-issuance of treasury stock $ (9) $ 10
v3.8.0.1
Intangible assets, net (Parentheticals) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross $ 15,387 $ 2,666
Less accumulated amortization (2,653) (2,653)
Intangible assets, net 12,700  
License fees    
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 13,969 1,248
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 268 268
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross $ 1,150 $ 1,150
v3.8.0.1
The Company and Significant Accounting Policies
3 Months Ended
Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company and Significant Accounting Policies
The Company and Significant Accounting Policies
The Company
Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company,” "AOS," "we" or "us") design, develop and supply a broad range of power semiconductors. The Company's portfolio of products targets high-volume applications, including personal computers, flat panel TVs, LED lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. The Company conducts its operations primarily in the United States of America (“USA”), Hong Kong, China, Taiwan, Korea, Germany and Japan.
Basis of Preparation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the three months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2018. The condensed consolidated balance sheet at June 30, 2017 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017.

Joint Venture

In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China (the "Chongqing Funds") to form a joint venture for a new state-of-the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing (the "Joint Venture"). The initial capitalization of the Joint Venture under the agreement is $330.0 million, which includes cash contributions from the Chongqing Funds and contributions of cash, equipment and intangible assets from the Company. The Company owns 51% and the Chongqing Funds own 49% of the equity interest of the Joint Venture. The Joint Venture is accounted under the provisions of the consolidation guidance since the Company has a controlling financial interest.
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's condensed consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets.
Fair Value of Financial Instruments
The fair values of cash equivalents are based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities.
Comprehensive Income (Loss)
Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Total comprehensive income (loss) is presented in the condensed consolidated statements of comprehensive income (loss).

Recent Accounting Pronouncements
    
In May 2017, the FASB issued Accounting Standard Updates ("ASU") ASU 2017-09, "Compensation -Stock Compensation: Scope of Modification Accounting ("ASU 2017-09"). ASU 2017-09 is an update to the existing guidance to clarify when modification accounting would be applied for a change to the terms or conditions of a share-based award. Under this new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. This ASU will be effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. The Company does not regularly modify the terms and conditions of its share-based awards and does not expect the adoption of this guidance to have a significant impact on its financial statements.

In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows: Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted and requires retrospective adoption.  The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows.

In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted.  Upon adoption, entities must apply the guidance retrospectively to all periods presented. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”).  The Company must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). The new standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company will adopt the new revenue standards in its first quarter of fiscal year 2019 utilizing the modified retrospective method. While the Company is still in the process of completing its analysis on the impact this guidance will have on the Company's consolidated financial statements, related disclosures, and its internal controls over financial reporting, the Company cannot reasonably estimate quantitative information at this time.
v3.8.0.1
Net Income (Loss) Per Share
3 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income Per Common Share Attributable to Alpha and Omega Semiconductor Limited
The following table presents the calculation of basic and diluted net income per share attributable to common shareholders:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands, except per share data)
Numerator:
 
 
 
Net income attributable to Alpha and Omega Semiconductor Limited
$
4,800

 
$
3,307

 
 
 
 
Denominator:
 
 
 
Basic:
 
 
 
Weighted average number of common shares used to compute basic net income per share
24,021

 
23,031

Diluted:
 
 
 
Weighted average number of common shares used to compute basic net income per share
24,021

 
23,031

Effect of potentially dilutive securities:
 
 
 
Stock options, RSUs and ESPP shares
939

 
1,382

Weighted average number of common shares used to compute diluted net income per share
24,960

 
24,413

Net income per share attributable to Alpha and Omega Semiconductor Limited:
 
 
 
Basic
$
0.20

 
$
0.14

Diluted
$
0.19

 
$
0.14


The following potential dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Employee stock options and RSUs
172

 
247

ESPP
90

 

Total potential dilutive securities
262

 
247

v3.8.0.1
Concentration of Credit Risk and Significant Customers
3 Months Ended
Sep. 30, 2017
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk and Significant Customers
Concentration of Credit Risk and Significant Customers
The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.
Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, when available.
Summarized below are individual customers whose revenue or accounts receivable balances were more than 10% of the respective total consolidated amounts:
 
Three Months Ended September 30,
Percentage of revenue
2017
 
2016
Customer A
27.5
%
 
24.2
%
Customer B
33.9
%
 
36.5
%
Customer C
*

 
13.9
%
* Less than 10%

 
September 30,
2017
 
June 30,
2017
Percentage of accounts receivable
 
Customer A
31.3
%
 
33.2
%
Customer B
12.6
%
 
13.2
%
Customer C
21.0
%
 
16.4
%
v3.8.0.1
Balance Sheet Components
3 Months Ended
Sep. 30, 2017
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components
Balance Sheet Components
Accounts receivable, net:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Accounts receivable
$
45,742

 
$
48,039

Less: Allowance for price adjustments
(20,306
)
 
(19,599
)
Less: Allowance for doubtful accounts
(30
)
 
(30
)
Accounts receivable, net
$
25,406

 
$
28,410



Inventories:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Raw materials
$
33,717

 
$
32,118

Work in-process
37,076

 
36,081

Finished goods
8,394

 
8,055

 
$
79,187

 
$
76,254


 
Property, plant and equipment, net:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Land
$
4,877

 
$
4,877

Building
4,325

 
4,325

Manufacturing machinery and equipment
230,559

 
215,275

Equipment and tooling
14,310

 
13,549

Computer equipment and software
24,804

 
24,346

Office furniture and equipment
1,856

 
1,935

Leasehold improvements
29,278

 
29,136

 
310,009

 
293,443

Less accumulated depreciation
(202,984
)
 
(194,837
)
 
107,025

 
98,606

Equipment and construction in progress
51,948

 
40,781

Property, plant and equipment, net
$
158,973

 
$
139,387









Intangible assets, net:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
License fees
$
13,969

 
$
1,248

Trade name
268

 
268

Customer relationships
1,150

 
1,150

 
15,387

 
2,666

Less accumulated amortization
(2,653
)
 
(2,653
)
 
12,734

 
13

Goodwill
269

 
269

Intangible assets, net
$
13,003

 
$
282


Land use rights, net:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Land use rights
$
9,032

 
$
8,849

Less accumulated amortization
(91
)
 
(45
)
Land use rights, net
$
8,941

 
$
8,804


Other long-term assets:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Prepayments for property and equipment
$
11,800

 
$
12,964

Investment in a privately held company
700

 
700

Prepaid income tax

 
4,377

Office leases deposits
2,000

 
1,608

Other
391

 
216

 
$
14,891

 
$
19,865


Accrued liabilities:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Accrued compensation and benefits
$
15,090

 
$
13,727

Warranty accrual
1,622

 
1,866

Stock rotation accrual
1,994

 
1,871

Accrued professional fees
1,795

 
2,500

Accrued inventory
608

 
410

Accrued facilities related expenses
1,719

 
1,501

Accrued license fees
7,000

 

Other accrued expenses
7,493

 
6,511

 
$
37,321

 
$
28,386


The activities in the warranty accrual, included in accrued liabilities, are as follows:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Beginning balance
$
1,866

 
$
1,495

Additions (Reductions)
(237
)
 
1,491

Utilization
(7
)
 
(48
)
Ending balance
$
1,622

 
$
2,938


The activities in the stock rotation accrual, included in accrued liabilities, are as follows:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Beginning balance
$
1,871

 
$
1,988

Additions
791

 
1,626

Utilization
(668
)
 
(1,599
)
Ending balance
$
1,994

 
$
2,015

v3.8.0.1
Debt Debt
3 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
Debt
Debt

On August 15, 2017, the Company's Oregon subsidiary, Jireh Semiconductor Incorporated (“Jireh”), entered into a credit agreement with a financial institution (the “Bank”) that provides a term loan in an amount up to $30.0 million for the purpose of purchasing certain equipment for our fabrication facility located in Oregon.  The obligation under the credit agreement is secured by substantially all assets of Jireh and guaranteed by the Company.  The credit agreement has a five-year term and matures on August 15, 2022, and Jireh may draw down the loan at any time during the first year.  After the first year, Jireh is required to pay to the Bank on each payment date, the outstanding principal amount of the loan in monthly installments.  The loan accrues interest based on an adjusted London Interbank Offered Rate ("LIBOR") as defined in the credit agreement, plus specified applicable margin based on the outstanding balance of the loan.  The credit agreement contains customary restrictive covenants and includes certain financial covenants that require the Company to maintain, on a consolidated basis, specified financial ratios and fixed charge coverage ratio. As of September 30, 2017, the Company recorded approximately $0.1 million of transaction costs and had no outstanding balance of the loan.
v3.8.0.1
Joint Venture
3 Months Ended
Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]  
Joint Venture
Joint Venture

On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture, (the “JV Company”), for the purpose of constructing and operating a power semiconductor packaging, testing and 12-inch wafer fabrication facility in the Liangjiang New Area of Chongqing, China (the “JV Transaction”). The total initial capitalization of the JV Company is $330.0 million (the “Initial Capitalization”), which includes cash contribution from the Chongqing Funds and contributions of cash, equipment and intangible assets from the Company.  The Initial Capitalization is expected to be completed in stages.  The Company owns 51%, and the Chongqing Funds own 49%, of the equity interest in the JV Company. If both parties agree that the termination of the JV Company is the best interest of each party or the JV Company is bankrupt or insolvent where either party may terminate early, after paying the debts of the JV Company, the remaining assets of the JV Company shall be paid to the Chongqing Funds to cover the principal of its total paid-in contributions plus interest at 10% simple annual rate prior to distributing the balance of the JV Company's assets to the Company. The Company expects the JV Company to commence initial production in mid-calendar year 2018.

There is no private land ownership in China. Individuals and companies are permitted to acquire land use rights for specific purpose. In September 2016, the JV Company paid approximately $8.7 million for land use rights to build the manufacturing facility. In March 2017, the JV Company received the necessary land use right certificate from the PRC government. The land use rights will expire on November 30, 2066.
As part of the JV Transaction, the JV Company entered into an Engineering, Procurement and Construction Contract (the “EPC Contract”) with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited (the “Contractor”), effective as of January 10, 2017 (the "Effective Date"), pursuant which the Contractor was engaged to construct the manufacturing facility contemplated under the JV Agreement. Under the EPC Contract, the Contractor’s obligations include, but are not limited to: (i) the development of conceptual design, initial design, construction drawing design and optimization, and submission of such designs to the JV Company for examination and confirmation; and (ii) the construction of the assembly and wafer fabrication facilities and related procurement services, including the selection and engagement of subcontractors, in accordance with a construction schedule agreed upon by the parties. The total price payable under the EPC Contract is Chinese Renminbi (RMB) 540.0 million, or approximately $78.0 million based on the currency exchange rate between RMB and U.S. Dollars on the Effective Date, which consists of $2.8 million (RMB 19.5 million) of design fees (“Design Fees”) and $75.2 million (RMB 520.5 million) of construction and procurement fees (including compliance with safety and aesthetic requirements) (“Construction Fees”). The Design Fees and Construction Fees will be paid by the JV Company pursuant to a payment schedule based on the progress of the construction and the achievements of specified milestones, approximately $58.3 million and $19.7 million in calendar year 2017 and 2018, respectively. The payment may be subject to volatility as a result of exposure to fluctuations in RMB foreign exchange rates. As of September 30, 2017, the JV Company paid approximately $30.1 million under the EPC Contract.

The Company began consolidating the financial statements of the JV Company in the quarter ended June 30, 2016. The Chongqing Funds contributed $87.0 million initial capital in cash during the three months ended September 30, 2017. As of September 30, 2017, the Chongqing Funds contributed an aggregate of $120.0 million of initial capital in cash and the Company contributed cash of $10.0 million and certain intangible assets, as well as certain packaging equipment as required by the JV Agreement by transferring the legal titles of such equipment to the JV Company.

The changes in total stockholders' equity and noncontrolling interest were as follows (in thousands):

 
 
Total AOS Stockholders' Equity
 
Noncontrolling Interest
 
Total Equity
Balance, June 30, 2017
 
$
270,770

 
$
27,779

 
$
298,549

Exercise of common stock options and release of RSUs
 
234

 

 
234

Reissuance of treasury stock upon exercise of common stock options and release of RSUs
 
(55
)
 

 
(55
)
Withholding tax on restricted stock units
 
(129
)
 

 
(129
)
     Stock-based compensation expense
 
2,008

 

 
2,008

     Net income (loss)
 
4,800

 
(1,461
)
 
3,339

Deferred tax asset related to ASU 2016-16 adoption
 
(5,480
)
 

 
(5,480
)
     Cumulative translation adjustment
 
367

 
334

 
701

     Contributions from noncontrolling interest
 

 
86,994

 
86,994

Balance, September 30, 2017
 
$
272,515

 
$
113,646

 
$
386,161

v3.8.0.1
Shareholders' Equity and Share-based Compensation
3 Months Ended
Sep. 30, 2017
Share-based Compensation [Abstract]  
Shareholders' Equity and Share-based Compensation
Shareholders' Equity and Share-based Compensation
Share Repurchase

In September 2017, the Board of Directors terminated the repurchase program that was previously approved in 2015 and approved a new repurchase program (the “Repurchase Program”), which allows the Company to repurchase its common shares from the open market pursuant to a pre-established Rule 10b5-1 trading plan or through privately negotiated transactions up to an aggregate of $30.0 million. The amount and timing of any repurchases under the Repurchase Program depend on a number of factors, including but not limited to, the trading price, volume and availability of the Company's common shares. Shares repurchased under this program are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity.

During the three months ended September 30, 2017, the Company did not repurchase any shares pursuant to the Repurchase Program or the prior repurchase program.  Since the inception of the prior repurchase program in 2010, the Company repurchased an aggregate of 5,723,093 shares from the open market including shares purchased in the Tender Offer for a total cost of $50.8 million, at an average price of $8.87 per share, excluding fees and related expenses.  No repurchased shares have been retired. Of the 5,723,093 repurchased shares, 120,504 shares with a weighted average repurchase price of $10.73 per share, were reissued at an average price of $6.09 per share pursuant to option exercises and vested restricted share units. As of September 30, 2017, $30.0 million remained available under the Repurchase Program.
Stock Options
The Company did not grant any stock options during the three months ended September 30, 2017. Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options.
The following table summarizes the Company's stock option activities for the three months ended September 30, 2017:
 
 
 
 
 
Weighted
 
 
 
 
 
Weighted
 
Average
 
 
 
 
 
Average
 
Remaining
 
 
 
Number of
 
Exercise Price
 
Contractual
 
Aggregate
 
Shares
 
Per Share
 
Term (in years)
 
Intrinsic Value
Outstanding at June 30, 2017
1,053,367

 
$
10.98

 
4.43
 
$
6,212,660

Granted

 
$

 
 
 
 
Exercised
(18,265
)
 
$
9.79

 
 
 
$
112,089

Canceled or forfeited

 
$

 
 
 
 
Outstanding at September 30, 2017
1,035,102

 
$
11.00

 
4.24
 
$
5,930,320

Options vested and expected to vest
1,033,779

 
$
11.00

 
4.24
 
$
5,918,653

Exercisable at September 30, 2017
964,685

 
$
11.25

 
4.09
 
$
5,303,664

Restricted Stock Units ("RSU")
The following table summarizes the Company's RSU activities for the three months ended September 30, 2017:
 
Number of Restricted Stock
Units
 
Weighted Average
Grant Date Fair
Value Per Share
 
Weighted Average
Remaining
Recognition
Period (Years)
 
Aggregate Intrinsic Value
Nonvested at June 30, 2017
1,144,865

 
$
14.11

 
1.76
 
$
19,084,900

Granted
20,176

 
$
16.48

 
 
 
 
Vested
(36,366
)
 
$
13.98

 
 
 
 
Forfeited
(9,875
)
 
$
14.09

 
 
 
 
Nonvested at September 30, 2017
1,118,800

 
$
14.16

 
1.56
 
$
18,449,012

RSUs vested and expected to vest
1,001,288

 
 
 
1.49
 
$
16,511,235

The fair value of RSU is based on the market price of the Company's share on the date of grant.

In March 2017, the Company granted 170,000 performance-based RSUs (“PRSUs”) to its key personnel. The number shares to be issued under the PRSU will be determined based on the level of attainment of predetermined financial goals. The PRSU will vest in four equal annual installments from March 15, 2018 if certain predetermined financial goals were met. The Company recorded approximately $0.2 million of expenses for these PRSUs in the three months ended September 30, 2017.
Employee Share Purchase Plan ("ESPP")
The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:
 
 
 
Three Months Ended September 30,
 
2017
Volatility rate
44.7%
Risk-free interest rate
1.0% - 1.3%
Expected term
1.3 years
Dividend yield
0%

Share-based Compensation Expense
The total share-based compensation expense related to stock options, RSUs and ESPP described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Cost of goods sold
$
316

 
$
195

Research and development
362

 
360

Selling, general and administrative
1,330

 
761

 
$
2,008

 
$
1,316


As of September 30, 2017, total unrecognized compensation cost under the Company's equity plans was $8.2 million, which is expected to be recognized over a weighted-average period of 1.5 years.
v3.8.0.1
STM License STM License
3 Months Ended
Sep. 30, 2017
STM License [Abstract]  
STM License
STMicro License

On September 5, 2017, the Company entered into a license agreement with STMicroelectronics International N.V. (“STMicro”), pursuant to which STMicro granted the Company a world-wide, royalty-free and fully-paid license to use its technologies to develop, market and distribute certain digital multi-phase controller products, which have been offered by STMicro.  This agreement allows the Company to develop and market products in a new market, primarily in the computer server segment. Under the license agreement, the Company agreed to pay a total price in cash of $17.0 million based on the payment schedule of, approximately $10.1 million, $6.7 million and $0.2 million in calendar year 2017, 2018 and 2019, respectively. As of September 30, 2017, the Company recorded $12.7 million in intangible assets, of which $5.6 million was paid to STMicro.
v3.8.0.1
Income Taxes
3 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For the three months ended September 30, 2017, the Company recognized income tax expense of approximately $1.3 million, of which $0.4 million was related to a discrete tax expense for an intercompany asset transfer. For the three months ended September 30, 2016, the Company recognized income tax expense of approximately $1.2 million. Excluding the discrete income tax expense, the estimated effective tax rate for the three months ended September 30, 2017 was 19.1% compared to 32.9% for the three months ended September 30, 2016. The changes in the effective tax rate and tax expense between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current quarter and the same period of last year.

During the quarter ended September 30, 2016, the Company contributed certain packaging equipment as required by the JV Agreement by transferring the legal titles of such equipment to the JV Company. As a result of the transfer, the Company reduced its deferred tax assets by $6.6 million and recorded a $6.6 million in prepaid tax asset, which was amortized to tax expense over the useful life of the assets. As of June 30, 2017, the prepaid tax asset was amortized down to $5.5 million, of which $1.1 million and $4.4 million were included in prepaid and other current assets and other long-term assets on the Company's balance sheet, respectively. On July 1, 2017, the Company adopted ASU 2016-16, Intra-Entity Transfers of Assets other than Inventory, which resulted in a de-recognition of a prepaid tax asset of $5.5 million related to the prior period intra-entity asset transfer with the JV Company, with an offsetting reduction to retained earnings.  Because the JV Company has a full valuation allowance, there was no change to the Company’s net deferred tax assets.
The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2017 remain open to examination by U.S. federal and state tax authorities. The tax years 2010 to 2017 remain open to examination by foreign tax authorities.
The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of September 30, 2017, the gross amount of unrecognized tax benefits was approximately $6.7 million, of which $4.1 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. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months.

On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of share-based compensation expense in an intercompany cost-sharing arrangement. A final decision has yet to be issued by the Tax Court due to other outstanding issues related to the case. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include share-based compensation from its regulations. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits, and the risk of the Tax Court’s decision being overturned upon appeal, the Company has not recorded any benefit as of September 30, 2017. The Company will continue to monitor ongoing developments and potential impacts to its financial statements.
v3.8.0.1
Segment and Geographic Information
3 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment and Geographic Information
Segment and Geographic Information
The Company is organized as, and operates in, one operating segment: the design, development and supply of power semiconductor products for computing, consumer electronics, communication and industrial applications. The chief operating decision-maker is the Chief Executive Officer. The financial information presented to the Company's Chief Executive Officer is on a consolidated basis, accompanied by information about revenue by customer and geographic region, for purposes of evaluating financial performance and allocating resources. The Company has one business segment, and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment.
The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company's distributors sell their products to end customers which may have a global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets.
The revenue by geographical location in the following tables is based on the country or region to which the products were shipped to:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Hong Kong
$
85,230

 
$
82,835

China
17,120

 
12,442

South Korea
287

 
366

United States
1,378

 
894

Other Countries
843

 
825

 
$
104,858

 
$
97,362

The following is a summary of revenue by product type:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Power discrete
$
83,678

 
$
71,428

Power IC
18,097

 
22,998

Packaging and testing services
3,083

 
2,936

 
$
104,858

 
$
97,362

 
Long-lived assets, net consisting of property, plant and equipment and land use rights, by geographical area are as follows:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
China
$
103,187

 
$
85,691

United States
64,014

 
61,787

Other Countries
713

 
713

 
$
167,914

 
$
148,191

v3.8.0.1
Commitments and Contingencies
3 Months Ended
Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Purchase Commitments
As of September 30, 2017 and June 30, 2017, the Company had approximately $38.7 million and $25.7 million, respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts and packaging and testing services, and approximately $65.5 million and $69.2 million, respectively, of capital commitments for the purchase of property and equipment.
Joint Venture

In March 2016, the Company executed an agreement with two strategic investment funds owned by the Municipality of Chongqing, China to form a joint venture for a new state-of-the-art power semiconductor packaging, testing and wafer fabrication facility in Liangjiang New Area of Chongqing (the "Joint Venture"). The initial capitalization of the Joint Venture under the agreement is $330.0 million, which includes cash contribution from the Chongqing Funds and contributions of cash, equipment and intangible assets from the Company. The Company owns 51% and the Chongqing Funds own 49% of the equity interest of the Joint Venture. The Joint Venture is accounted under the provisions of the consolidation guidance since the Company has controlling financial interest.

As of September 30, 2017, the Chongqing Funds contributed an aggregate of $120.0 million of initial capital in cash and the Company contributed $10.0 million in cash and certain intangible assets, as well as certain packaging equipment as required by the JV Agreement by transferring the legal titles of such equipment to the JV Company. The Company expects the JV Company to commence initial production in mid-calendar year 2018.

In January 2017, the JV Company entered into an Engineering, Procurement and Construction Contract (the "EPC Contract") with The IT Electronics Eleventh Design & Research Institute Scientific and Technological Engineering Corporation Limited. The total price payable by the JV Company under the EPC Contract is approximately $78.0 million, which consists of $2.8 million of design fees and $75.2 million of construction and procurement fees. These fees will be paid by the JV Company pursuant to a payment schedule based on the progress of the construction and the achievements of specified milestones, approximately $58.3 million and $19.7 million in calendar year 2017 and 2018, respectively. The payment may be subject to volatility as a result of exposure to fluctuations in RMB foreign exchange rates. As of September 30, 2017, the JV Company paid approximately $30.1 million under the EPC Contract.

STMicro License

On September 5, 2017, the Company entered into a license agreement with STMicroelectronics International N.V. (“STMicro”), pursuant to which STMicro granted the Company a world-wide, royalty-free and fully-paid license to use its technologies to develop, market and distribute certain digital multi-phase controller products, which have been offered by STMicro.  Under the license agreement, the Company agreed to pay a total price in cash of $17.0 million based on the payment schedule of, approximately $10.1 million, $6.7 million and $0.2 million in calendar year 2017, 2018 and 2019, respectively. As of September 30, 2017, the Company recorded $12.7 million in intangible assets, of which $5.6 million was paid to STMicro.
Contingencies and Indemnities
The Company is currently not a party to any pending material legal proceedings. The Company has in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities.  The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, the Company could incur significant costs in the defense of such claims and suffer adverse effects on its operations.
The Company is a party to a variety of agreements that it has contracted with various third parties. Pursuant to these agreements, the Company may be obligated to indemnify another party to such an agreement with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold, certain intellectual property rights, specified environmental matters and certain income taxes. In these circumstances, payment by the Company is customarily conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claim. Further, the Company's obligations under these agreements may be limited in time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. The Company has not historically paid or recorded any material indemnifications and no accrual has been made at September 30, 2017 and June 30, 2017.
The Company has agreed to indemnify its directors and certain employees as permitted by law and pursuant to its bye-laws, and has entered into indemnification agreements with its directors and executive officers. The Company has not recorded a liability associated with these indemnification arrangements, as it historically has not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that the Company maintains. However, such insurance may not cover any, or may cover only a portion of, the amounts the Company may be required to pay. In addition, the Company may not be able to maintain such insurance coverage in the future.
v3.8.0.1
The Company and Significant Accounting Policies (Policies)
3 Months Ended
Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Preparation
Basis of Preparation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the three months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2018. The condensed consolidated balance sheet at June 30, 2017 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2017.
Use of Estimates
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's condensed consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, share-based compensation, and useful lives for property, plant and equipment and intangible assets.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The fair values of cash equivalents are based on observable market prices and have been categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts receivable and accounts payable approximate their carrying values due to their short-term maturities.
Comprehensive Income (Loss)
Comprehensive Income (Loss)
Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income (loss) consists of cumulative foreign currency translation adjustments. Total comprehensive income (loss) is presented in the condensed consolidated statements of comprehensive income (loss).
Recent Accounting Pronouncements
Recent Accounting Pronouncements
    
In May 2017, the FASB issued Accounting Standard Updates ("ASU") ASU 2017-09, "Compensation -Stock Compensation: Scope of Modification Accounting ("ASU 2017-09"). ASU 2017-09 is an update to the existing guidance to clarify when modification accounting would be applied for a change to the terms or conditions of a share-based award. Under this new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. This ASU will be effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted. The Company does not regularly modify the terms and conditions of its share-based awards and does not expect the adoption of this guidance to have a significant impact on its financial statements.

In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows: Restricted Cash ("ASU 2016-18"). ASU 2016-18 requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. This ASU will be effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted and requires retrospective adoption.  The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial position, results of operations or cash flows.

In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows under Topic 230. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted.  Upon adoption, entities must apply the guidance retrospectively to all periods presented. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (“ASU 2016-08”); ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (“ASU 2016-10”); ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”); and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”).  The Company must adopt ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 with ASU 2014-09 (collectively, the “new revenue standards”). The new standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company will adopt the new revenue standards in its first quarter of fiscal year 2019 utilizing the modified retrospective method. While the Company is still in the process of completing its analysis on the impact this guidance will have on the Company's consolidated financial statements, related disclosures, and its internal controls over financial reporting, the Company cannot reasonably estimate quantitative information at this time.
Concentration of Credit Risk
The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.
Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, when available.
v3.8.0.1
Net Income (Loss) Per Share (Tables)
3 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table presents the calculation of basic and diluted net income per share attributable to common shareholders:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands, except per share data)
Numerator:
 
 
 
Net income attributable to Alpha and Omega Semiconductor Limited
$
4,800

 
$
3,307

 
 
 
 
Denominator:
 
 
 
Basic:
 
 
 
Weighted average number of common shares used to compute basic net income per share
24,021

 
23,031

Diluted:
 
 
 
Weighted average number of common shares used to compute basic net income per share
24,021

 
23,031

Effect of potentially dilutive securities:
 
 
 
Stock options, RSUs and ESPP shares
939

 
1,382

Weighted average number of common shares used to compute diluted net income per share
24,960

 
24,413

Net income per share attributable to Alpha and Omega Semiconductor Limited:
 
 
 
Basic
$
0.20

 
$
0.14

Diluted
$
0.19

 
$
0.14

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following potential dilutive securities were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Employee stock options and RSUs
172

 
247

ESPP
90

 

Total potential dilutive securities
262

 
247

v3.8.0.1
Concentration of Credit Risk and Significant Customers (Tables)
3 Months Ended
Sep. 30, 2017
Risks and Uncertainties [Abstract]  
Schedules of Concentration of Risk, by Risk Factor
Summarized below are individual customers whose revenue or accounts receivable balances were more than 10% of the respective total consolidated amounts:
 
Three Months Ended September 30,
Percentage of revenue
2017
 
2016
Customer A
27.5
%
 
24.2
%
Customer B
33.9
%
 
36.5
%
Customer C
*

 
13.9
%
* Less than 10%

 
September 30,
2017
 
June 30,
2017
Percentage of accounts receivable
 
Customer A
31.3
%
 
33.2
%
Customer B
12.6
%
 
13.2
%
Customer C
21.0
%
 
16.4
%
v3.8.0.1
Balance Sheet Components (Tables)
3 Months Ended
Sep. 30, 2017
Balance Sheet Related Disclosures [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Accounts receivable, net:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Accounts receivable
$
45,742

 
$
48,039

Less: Allowance for price adjustments
(20,306
)
 
(19,599
)
Less: Allowance for doubtful accounts
(30
)
 
(30
)
Accounts receivable, net
$
25,406

 
$
28,410

Schedule of Inventory, Current
Inventories:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Raw materials
$
33,717

 
$
32,118

Work in-process
37,076

 
36,081

Finished goods
8,394

 
8,055

 
$
79,187

 
$
76,254

Property, Plant and Equipment
Property, plant and equipment, net:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Land
$
4,877

 
$
4,877

Building
4,325

 
4,325

Manufacturing machinery and equipment
230,559

 
215,275

Equipment and tooling
14,310

 
13,549

Computer equipment and software
24,804

 
24,346

Office furniture and equipment
1,856

 
1,935

Leasehold improvements
29,278

 
29,136

 
310,009

 
293,443

Less accumulated depreciation
(202,984
)
 
(194,837
)
 
107,025

 
98,606

Equipment and construction in progress
51,948

 
40,781

Property, plant and equipment, net
$
158,973

 
$
139,387

Intangible Assets Disclosure
Intangible assets, net:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
License fees
$
13,969

 
$
1,248

Trade name
268

 
268

Customer relationships
1,150

 
1,150

 
15,387

 
2,666

Less accumulated amortization
(2,653
)
 
(2,653
)
 
12,734

 
13

Goodwill
269

 
269

Intangible assets, net
$
13,003

 
$
282

Summary of Land Use Rights, Net
Land use rights, net:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Land use rights
$
9,032

 
$
8,849

Less accumulated amortization
(91
)
 
(45
)
Land use rights, net
$
8,941

 
$
8,804

Schedule of Other Assets, Noncurrent
Other long-term assets:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Prepayments for property and equipment
$
11,800

 
$
12,964

Investment in a privately held company
700

 
700

Prepaid income tax

 
4,377

Office leases deposits
2,000

 
1,608

Other
391

 
216

 
$
14,891

 
$
19,865

Schedule of Accrued Liabilities
Accrued liabilities:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
Accrued compensation and benefits
$
15,090

 
$
13,727

Warranty accrual
1,622

 
1,866

Stock rotation accrual
1,994

 
1,871

Accrued professional fees
1,795

 
2,500

Accrued inventory
608

 
410

Accrued facilities related expenses
1,719

 
1,501

Accrued license fees
7,000

 

Other accrued expenses
7,493

 
6,511

 
$
37,321

 
$
28,386

Schedule of Product Warranty Liability
The activities in the warranty accrual, included in accrued liabilities, are as follows:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Beginning balance
$
1,866

 
$
1,495

Additions (Reductions)
(237
)
 
1,491

Utilization
(7
)
 
(48
)
Ending balance
$
1,622

 
$
2,938

Stock Rotation Accrual
The activities in the stock rotation accrual, included in accrued liabilities, are as follows:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Beginning balance
$
1,871

 
$
1,988

Additions
791

 
1,626

Utilization
(668
)
 
(1,599
)
Ending balance
$
1,994

 
$
2,015

v3.8.0.1
Joint Venture (Tables)
3 Months Ended
Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Stockholders Equity
The changes in total stockholders' equity and noncontrolling interest were as follows (in thousands):

 
 
Total AOS Stockholders' Equity
 
Noncontrolling Interest
 
Total Equity
Balance, June 30, 2017
 
$
270,770

 
$
27,779

 
$
298,549

Exercise of common stock options and release of RSUs
 
234

 

 
234

Reissuance of treasury stock upon exercise of common stock options and release of RSUs
 
(55
)
 

 
(55
)
Withholding tax on restricted stock units
 
(129
)
 

 
(129
)
     Stock-based compensation expense
 
2,008

 

 
2,008

     Net income (loss)
 
4,800

 
(1,461
)
 
3,339

Deferred tax asset related to ASU 2016-16 adoption
 
(5,480
)
 

 
(5,480
)
     Cumulative translation adjustment
 
367

 
334

 
701

     Contributions from noncontrolling interest
 

 
86,994

 
86,994

Balance, September 30, 2017
 
$
272,515

 
$
113,646

 
$
386,161

v3.8.0.1
Shareholders' Equity and Share-based Compensation (Tables)
3 Months Ended
Sep. 30, 2017
Share-based Compensation [Abstract]  
Summary of Stock Option Activities
Stock Options
The Company did not grant any stock options during the three months ended September 30, 2017. Options expected to vest are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options.
The following table summarizes the Company's stock option activities for the three months ended September 30, 2017:
 
 
 
 
 
Weighted
 
 
 
 
 
Weighted
 
Average
 
 
 
 
 
Average
 
Remaining
 
 
 
Number of
 
Exercise Price
 
Contractual
 
Aggregate
 
Shares
 
Per Share
 
Term (in years)
 
Intrinsic Value
Outstanding at June 30, 2017
1,053,367

 
$
10.98

 
4.43
 
$
6,212,660

Granted

 
$

 
 
 
 
Exercised
(18,265
)
 
$
9.79

 
 
 
$
112,089

Canceled or forfeited

 
$

 
 
 
 
Outstanding at September 30, 2017
1,035,102

 
$
11.00

 
4.24
 
$
5,930,320

Options vested and expected to vest
1,033,779

 
$
11.00

 
4.24
 
$
5,918,653

Exercisable at September 30, 2017
964,685

 
$
11.25

 
4.09
 
$
5,303,664

Restricted Stock Units Activity
Restricted Stock Units ("RSU")
The following table summarizes the Company's RSU activities for the three months ended September 30, 2017:
 
Number of Restricted Stock
Units
 
Weighted Average
Grant Date Fair
Value Per Share
 
Weighted Average
Remaining
Recognition
Period (Years)
 
Aggregate Intrinsic Value
Nonvested at June 30, 2017
1,144,865

 
$
14.11

 
1.76
 
$
19,084,900

Granted
20,176

 
$
16.48

 
 
 
 
Vested
(36,366
)
 
$
13.98

 
 
 
 
Forfeited
(9,875
)
 
$
14.09

 
 
 
 
Nonvested at September 30, 2017
1,118,800

 
$
14.16

 
1.56
 
$
18,449,012

RSUs vested and expected to vest
1,001,288

 
 
 
1.49
 
$
16,511,235

The fair value of RSU is based on the market price of the Company's share on the date of grant.
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]
Employee Share Purchase Plan ("ESPP")
The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:
 
 
 
Three Months Ended September 30,
 
2017
Volatility rate
44.7%
Risk-free interest rate
1.0% - 1.3%
Expected term
1.3 years
Dividend yield
0%
Share-based Compensation, Allocation of Recognized Period Costs
Share-based Compensation Expense
The total share-based compensation expense related to stock options, RSUs and ESPP described above, recognized in the condensed consolidated statements of operations for the periods presented was as follows:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Cost of goods sold
$
316

 
$
195

Research and development
362

 
360

Selling, general and administrative
1,330

 
761

 
$
2,008

 
$
1,316

v3.8.0.1
Segment and Geographic Information (Tables)
3 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas
Long-lived assets, net consisting of property, plant and equipment and land use rights, by geographical area are as follows:
 
September 30,
2017
 
June 30,
2017
 
(in thousands)
China
$
103,187

 
$
85,691

United States
64,014

 
61,787

Other Countries
713

 
713

 
$
167,914

 
$
148,191

The revenue by geographical location in the following tables is based on the country or region to which the products were shipped to:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Hong Kong
$
85,230

 
$
82,835

China
17,120

 
12,442

South Korea
287

 
366

United States
1,378

 
894

Other Countries
843

 
825

 
$
104,858

 
$
97,362

Revenue from External Customers by Products and Services
The following is a summary of revenue by product type:
 
Three Months Ended September 30,
 
2017
 
2016
 
(in thousands)
Power discrete
$
83,678

 
$
71,428

Power IC
18,097

 
22,998

Packaging and testing services
3,083

 
2,936

 
$
104,858

 
$
97,362

v3.8.0.1
The Company and Significant Accounting Policies Joint Venture (Details) - Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') - USD ($)
$ in Millions
1 Months Ended
Mar. 31, 2016
Mar. 29, 2016
Parent Company    
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 51.00%  
Chongqing Funds    
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 49.00%  
Corporate Joint Venture    
Initial capitalization of joint venture   $ 330.0
v3.8.0.1
Net Income (Loss) Per Share - Basic and Diluted Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Numerator:    
Net income attributable to Alpha and Omega Semiconductor Limited $ 4,800 $ 3,307
Basic:    
Weighted average number of common shares used to compute basic net income per share 24,021 23,031
Effect of potentially dilutive securities:    
Stock options, RSUs and ESPP shares 939 1,382
Weighted average number of common shares used to compute diluted net income per share 24,960 24,413
Net income per share attributable to Alpha and Omega Semiconductor Limited:    
Basic (in dollars per share) $ 0.20 $ 0.14
Diluted (in dollars per share) $ 0.19 $ 0.14
v3.8.0.1
Net Income (Loss) Per Share - Potential Dilutive Shares (Details) - shares
shares in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential dilutive securities (in shares) 262 247
Employee stock options and RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential dilutive securities (in shares) 172 247
ESPP    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential dilutive securities (in shares) 90 0
v3.8.0.1
Concentration of Credit Risk and Significant Customers - (Details)
3 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Sep. 30, 2016
Minimum      
Concentration Risk      
Terms of credit sales, (in days) 30 days    
Maximum      
Concentration Risk      
Terms of credit sales, (in days) 60 days    
Customer A | Sales Revenue, Goods, Net | Customer Concentration Risk      
Concentration Risk      
Customers greater than 10% of total 27.50%   24.20%
Customer A | Accounts Receivable | Customer Concentration Risk      
Concentration Risk      
Customers greater than 10% of total 31.30% 33.20%  
Customer B | Sales Revenue, Goods, Net | Customer Concentration Risk      
Concentration Risk      
Customers greater than 10% of total 33.90%   36.50%
Customer B | Accounts Receivable | Customer Concentration Risk      
Concentration Risk      
Customers greater than 10% of total 12.60% 13.20%  
Customer C | Sales Revenue, Goods, Net | Customer Concentration Risk      
Concentration Risk      
Customers greater than 10% of total [1]     13.90%
Customer C | Accounts Receivable | Customer Concentration Risk      
Concentration Risk      
Customers greater than 10% of total 21.00% 16.40%  
[1] * Less than 10%
v3.8.0.1
Balance Sheet Components - Accounts receivable (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]    
Accounts receivable $ 45,742 $ 48,039
Less: Allowance for price adjustments (20,306) (19,599)
Less: Allowance for doubtful accounts (30) (30)
Accounts receivable, net $ 25,406 $ 28,410
v3.8.0.1
Balance Sheet Components - Inventories (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]    
Raw materials $ 33,717 $ 32,118
Work in-process 37,076 36,081
Finished goods 8,394 8,055
Inventory, net $ 79,187 $ 76,254
v3.8.0.1
Balance Sheet Components - Property, plant, and equipment (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment excluding equipment and construction In progress, gross $ 310,009 $ 293,443
Less accumulated depreciation (202,984) (194,837)
Property, plant and equipment excluding equipment and construction in progress, net 107,025 98,606
Equipment and construction in progress 51,948 40,781
Property, plant and equipment, net 158,973 139,387
Land    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment excluding equipment and construction In progress, gross 4,877 4,877
Building    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment excluding equipment and construction In progress, gross 4,325 4,325
Manufacturing machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment excluding equipment and construction In progress, gross 230,559 215,275
Equipment and tooling    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment excluding equipment and construction In progress, gross 14,310 13,549
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment excluding equipment and construction In progress, gross 24,804 24,346
Office furniture and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment excluding equipment and construction In progress, gross 1,856 1,935
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property, plant, and equipment excluding equipment and construction In progress, gross $ 29,278 $ 29,136
v3.8.0.1
Balance Sheet Components - Intangible assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items]    
Finite-Lived Intangible Assets, Gross $ 15,387 $ 2,666
Less accumulated amortization (2,653) (2,653)
Intangible Assets, Net (Excluding Goodwill) 12,734 13
Goodwill 269 269
Intangible assets, net 13,003 282
License fees    
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items]    
Finite-Lived Intangible Assets, Gross 13,969 1,248
Trade name    
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items]    
Finite-Lived Intangible Assets, Gross 268 268
Customer relationships    
Schedule of Finite-lived Intangible Assets and Goodwill [Line Items]    
Finite-Lived Intangible Assets, Gross $ 1,150 $ 1,150
v3.8.0.1
Balance Sheet Components - Land Use Rights, Net (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]    
Land use rights $ 9,032 $ 8,849
Less: Accumulated depreciation (91) (45)
Land use rights, net $ 8,941 $ 8,804
v3.8.0.1
Balance Sheet Components - Other long term assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]    
Prepayments for property and equipment $ 11,800 $ 12,964
Investment in a privately held company 700 700
Prepaid income tax 0 4,377
Office leases deposits 2,000 1,608
Other 391 216
Other long-term assets $ 14,891 $ 19,865
v3.8.0.1
Balance Sheet Components - Accrued liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Sep. 30, 2016
Jun. 30, 2016
Balance Sheet Related Disclosures [Abstract]        
Accrued compensation and benefit $ 15,090 $ 13,727    
Warranty accrual 1,622 1,866 $ 2,938 $ 1,495
Stock rotation accrual 1,994 1,871 $ 2,015 $ 1,988
Accrued professional fees 1,795 2,500    
Accrued inventory 608 410    
Accrued facilities related expenses 1,719 1,501    
Accrued STMicro license fees 7,000 0    
Other accrued expenses 7,493 6,511    
Accrued liabilities $ 37,321 $ 28,386    
v3.8.0.1
Balance Sheet Components - Product Warranty Accrual (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]    
Beginning balance $ 1,866 $ 1,495
Additions (Reductions) (237) (1,491)
Utilization (7) (48)
Ending balance $ 1,622 $ 2,938
v3.8.0.1
Balance Sheet Components - Stock Rotation Accrual (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Stock Rotation Accrual Increae (Decrease) [Roll Forward]    
Beginning balance $ 1,871 $ 1,988
Additions 791 1,626
Utilization (668) (1,599)
Ending balance $ 1,994 $ 2,015
v3.8.0.1
Debt (Details) - Term Loan - Secured Debt - Variable Interest Rate Term Loan Maturing August 2022 - USD ($)
Sep. 30, 2017
Aug. 15, 2017
Debt Instrument [Line Items]    
Line of credit facility, maximum borrowing capacity   $ 30,000,000
Transaction costs $ 100,000  
Outstanding loan balance $ 0  
v3.8.0.1
Joint Venture - Narrative (Details)
1 Months Ended 3 Months Ended 9 Months Ended 15 Months Ended
Sep. 30, 2016
USD ($)
Mar. 31, 2016
Sep. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Sep. 30, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jan. 10, 2017
CNY (¥)
Jan. 10, 2017
USD ($)
Mar. 29, 2016
USD ($)
Schedule of Equity Method Investments [Line Items]                  
Purchases of land use rights in JV Company     $ 0 $ (8,737,000)          
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')                  
Schedule of Equity Method Investments [Line Items]                  
Interest rate to concontrolling interest if joint venture is early terminated and liquidated   10.00%              
Consideration transferred to acquire interest in joint venture     10,000,000            
Parent Company | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')                  
Schedule of Equity Method Investments [Line Items]                  
Percent ownership in joint venture   51.00%              
Chongqing Funds | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')                  
Schedule of Equity Method Investments [Line Items]                  
Percent ownership in joint venture   49.00%              
Payments to acquire interest in joint venture     $ 87,000,000     $ 120,000,000      
Corporate Joint Venture                  
Schedule of Equity Method Investments [Line Items]                  
Total price payable under EPC Contract             ¥ 540,000,000 $ 78,000,000  
Contract amount payable in calendar year 2017               58,300,000  
Contract amount payable in calendar year 2018               19,700,000  
Contractual Obligation, Payment         $ 30,100,000        
Corporate Joint Venture | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')                  
Schedule of Equity Method Investments [Line Items]                  
Initial capitalization of joint venture                 $ 330,000,000
Purchases of land use rights in JV Company $ 8,700,000                
Corporate Joint Venture | Design Fees                  
Schedule of Equity Method Investments [Line Items]                  
Total price payable under EPC Contract             19,525,052 2,800,000  
Corporate Joint Venture | Construction and Procurement Fees                  
Schedule of Equity Method Investments [Line Items]                  
Total price payable under EPC Contract             ¥ 520,474,948 $ 75,200,000  
v3.8.0.1
Joint Venture - Changes in Total Stockholders' Equity (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Schedule of Equity Method Investments [Line Items]    
Balance, June 30, 2017 $ 298,549  
Exercise of common stock options and release of RSUs 234  
Reissuance of treasury stock upon exercise of common stock options and release of RSUs (55)  
Withholding tax on restricted stock units (129)  
Stock-based compensation expense 2,008  
Net income (loss) 3,339 $ 2,430
Net loss attributable to noncontrolling interest (1,461) (877)
Cumulative translation adjustment 701  
Proceeds from investment by noncontrolling interest 86,994 $ 33,000
Balance, September 30, 2017 386,161  
Accounting Standards Update 2016-16    
Schedule of Equity Method Investments [Line Items]    
Deferred tax asset related to ASU 2016-16 adoption (5,480)  
Parent    
Schedule of Equity Method Investments [Line Items]    
Balance, June 30, 2017 270,770  
Exercise of common stock options and release of RSUs 234  
Reissuance of treasury stock upon exercise of common stock options and release of RSUs (55)  
Withholding tax on restricted stock units (129)  
Stock-based compensation expense 2,008  
Net income (loss) 4,800  
Cumulative translation adjustment 367  
Proceeds from investment by noncontrolling interest 0  
Balance, September 30, 2017 272,515  
Parent | Accounting Standards Update 2016-16    
Schedule of Equity Method Investments [Line Items]    
Deferred tax asset related to ASU 2016-16 adoption (5,480)  
Noncontrolling Interest    
Schedule of Equity Method Investments [Line Items]    
Balance, June 30, 2017 27,779  
Exercise of common stock options and release of RSUs 0  
Reissuance of treasury stock upon exercise of common stock options and release of RSUs 0  
Withholding tax on restricted stock units 0  
Stock-based compensation expense 0  
Net loss attributable to noncontrolling interest (1,461)  
Cumulative translation adjustment 334  
Proceeds from investment by noncontrolling interest 86,994  
Balance, September 30, 2017 113,646  
Noncontrolling Interest | Accounting Standards Update 2016-16    
Schedule of Equity Method Investments [Line Items]    
Deferred tax asset related to ASU 2016-16 adoption $ 0  
v3.8.0.1
Shareholders' Equity and Share-based Compensation - Shares Repurchase (Details)
$ / shares in Units, $ in Millions
3 Months Ended 83 Months Ended
Sep. 30, 2017
USD ($)
shares
Sep. 30, 2017
USD ($)
$ / shares
shares
Class of Stock [Line Items]    
Share repurchase program, authorized amount (USD in Millions) | $ $ 30.0 $ 30.0
Shares Repurchase Program Remaining Balance | $ $ 30.0 $ 30.0
Treasury Stock, Shares, Acquired | shares 0 5,723,093
Treasury Stock, Value, Acquired, Cost Method | $   $ 50.8
Treasury stock acquired, average price per share (in dollars per share) | $ / shares   $ 8.87
Treasury Stock, Shares, Retired | shares   0
Treasury Stock Reissued, Average Price Per Share | $ / shares   $ 6.09
Treasury Stock Reissued    
Class of Stock [Line Items]    
Treasury stock acquired, average price per share (in dollars per share) | $ / shares   $ 10.73
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures (in shares) | shares   120,504
v3.8.0.1
Shareholders' Equity and Share-based Compensation - Share-based Compensation (Details) - USD ($)
3 Months Ended 83 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Treasury Stock, Shares, Acquired 0   5,723,093
Options, Weighted-Average Remaining Contractual Life (in years) 4 years 2 months 27 days 4 years 5 months 5 days  
Options vested and expected to vest, Number Outstanding (in shares) 1,033,779   1,033,779
Options vested and expected to vest, Weighted Average Exercise Price (in dollars per share) $ 11.00   $ 11.00
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years) 4 years 2 months 27 days    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value $ 5,918,653   $ 5,918,653
Options, Number Exercisable (in shares) 964,685   964,685
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price $ 11.25   $ 11.25
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term 4 years 1 month 2 days    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value $ 5,303,664   $ 5,303,664
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Outstanding at June 30, 2017 1,053,367    
Granted (in shares) 0    
Exercised (in shares) (18,265)    
Canceled or forfeited (in shares) 0    
Outstanding at September 30, 2017 1,035,102 1,053,367 1,035,102
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]      
Outstanding at June 30, 2016 (in dollars per share) $ 10.98    
Granted (in dollars per share) 0    
Exercised (in dollars per share) 9.79    
Canceled or forfeited (in dollars per share) 0.00    
Outstanding at March 31, 2017 (in dollars per share) $ 11.00 $ 10.98 $ 11.00
Options Outstanding Aggregate Intrinsic Value $ 5,930,320 $ 6,212,660 $ 5,930,320
Options Exercised Aggregate Intrinsic Value $ 112,089    
Employee Share Purchase Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Volatility Rate 44.70%    
Expected Term 1 year 3 months 18 days    
Expected Dividend Rate 0.00%    
Employee Share Purchase Plan [Member] | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk Free Interest Rate 1.00%    
Employee Share Purchase Plan [Member] | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk Free Interest Rate 1.30%    
v3.8.0.1
Shareholders' Equity and Share-based Compensation - Stock Options Outstanding and Exercisable (Details) - $ / shares
3 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Share-based Compensation [Abstract]    
Options, Number Outstanding (in shares) 1,035,102 1,053,367
Options, Weighted-Average Remaining Contractual Life (in years) 4 years 2 months 27 days 4 years 5 months 5 days
Options, Weighted-Average Exercise Price (in dollars per share) $ 11.00 $ 10.98
Options, Number Exercisable (in shares) 964,685  
Options, Weighted-Average Exercise Price (in dollars per share) $ 11.25  
Options vested and expected to vest, Number Outstanding (in shares) 1,033,779  
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years) 4 years 2 months 27 days  
Options vested and expected to vest, Weighted Average Exercise Price (in dollars per share) $ 11.00  
v3.8.0.1
Shareholders' Equity and Share-based Compensation - Restricted Stock Activity (Details) - USD ($)
3 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]        
Weighted Average Remaining Recognition Period (Years) 1 year 6 months      
Allocated share-based compensation expense $ 2,008,000     $ 1,316,000
Restricted Stock        
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]        
Nonvested at June 30, 2017 1,144,865      
Granted 20,176      
Vested (36,366)      
Forfeited (9,875)      
Nonvested at September 30, 2017 1,118,800 1,144,865    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]        
Nonvested at June 30, 2017 $ 14.11      
Granted 16.48      
Vested 13.98      
Forfeited 14.09      
Nonvested at September 30, 2017 $ 14.16 $ 14.11    
Weighted Average Remaining Recognition Period (Years) 1 year 6 months 22 days 1 year 9 months 4 days    
RSUs Nonvested Aggregate Intrinsic Value $ 18,449,012 $ 19,084,900    
RSUs vested and expected to vest, Outstanding (in shares) 1,001,288      
RSUs vested and expected to vest, Weighted Average Remaining Recognition Period (in years) 1 year 5 months 27 days      
RSUs vested and expected to vest, Aggregate Intrinsic Value $ 16,511,235      
Performance Based Restricted Stock Units (PRSUs) Member [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]        
Granted     170,000  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]        
Allocated share-based compensation expense $ 200,000      
v3.8.0.1
Shareholders' Equity and Share-based Compensation - Share-based Compensation Expenses (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Allocated share-based compensation expense $ 2,008 $ 1,316
Unrecognized compensation expense $ 8,200  
Recognition period of share-based compensation expense (in years) 1 year 6 months  
Cost of goods sold    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Allocated share-based compensation expense $ 316 195
Research and development    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Allocated share-based compensation expense 362 360
Selling, general and administrative    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Allocated share-based compensation expense $ 1,330 $ 761
v3.8.0.1
STM License (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 05, 2017
Sep. 30, 2017
Sep. 30, 2016
Acquired Finite-Lived Intangible Assets [Line Items]      
Payments to acquire intangible assets   $ 5,720 $ 0
Finite-lived intangible assets, net   12,700  
STMicro | License fees      
Acquired Finite-Lived Intangible Assets [Line Items]      
Payments to acquire intangible assets $ 17,000    
Payments to acquire intangible assets, remainder of calendar year 10,100    
Payments to acquire intangible assets, calendar year two 6,700    
Payments to acquire intangible assets, calendar year three $ 200    
Finite-lived intangible assets, net   $ 5,600  
v3.8.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended
Jul. 01, 2017
Sep. 30, 2017
Sep. 30, 2016
Jun. 30, 2017
Operating Loss Carryforwards [Line Items]        
Income tax expense   $ 1,274 $ 1,237  
Discrete income tax expense (benefit)   $ 400    
Estimated effective income tax rate excluding discrete income tax expense   19.10% 32.90%  
Decrease in deferred tax assets     $ 6,600  
Prepaid taxes       $ 5,500
Increase (decrease) in prepaid taxes     $ (6,600)  
Unrecognized tax benefits   $ 6,700    
Unrecognized tax benefit that would impact effective tax rate   $ 4,100    
Prepaid Expenses and Other Current Assets        
Operating Loss Carryforwards [Line Items]        
Prepaid taxes       1,100
Other Long-term Assets        
Operating Loss Carryforwards [Line Items]        
Prepaid taxes       $ 4,400
Accounting Standards Update 2016-16        
Operating Loss Carryforwards [Line Items]        
Increase (decrease) in prepaid taxes $ 5,500      
v3.8.0.1
Segment and Geographic Information - Revenue by Location and Product Type (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue $ 104,858 $ 97,362
Power discrete    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue 83,678 71,428
Power IC    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue 18,097 22,998
Packaging and testing services    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue 3,083 2,936
Hong Kong    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue 85,230 82,835
China    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue 17,120 12,442
South Korea    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue 287 366
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue 1,378 894
Other Countries    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue $ 843 $ 825
v3.8.0.1
Segment and Geographic Information - Long-lived Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net and land use rights, net $ 167,914 $ 148,191
China    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net and land use rights, net 103,187 85,691
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net and land use rights, net 64,014 61,787
Other Countries    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property, plant and equipment, net and land use rights, net $ 713 $ 713
v3.8.0.1
Segment and Geographic Information - Narratives (Details)
3 Months Ended
Sep. 30, 2017
Segment
Segment Reporting [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.8.0.1
Commitments and Contingencies - Purchase Commitments (Details) - USD ($)
3 Months Ended
Sep. 05, 2017
Sep. 30, 2017
Sep. 30, 2016
Jun. 30, 2017
Purchase Commitment, Excluding Long-term Committment [Line Items]        
Payments to acquire intangible assets   $ 5,720,000 $ 0  
Intangible assets   12,700,000    
Raw materials, wafers, and packaging and testing services puchase commitments        
Purchase Commitment, Excluding Long-term Committment [Line Items]        
Purchase commitment, amount   38,700,000   $ 25,700,000
Property and equipment purchase commitments        
Purchase Commitment, Excluding Long-term Committment [Line Items]        
Purchase commitment, amount   65,500,000   69,200,000
License fees | STMicro        
Purchase Commitment, Excluding Long-term Committment [Line Items]        
Payments to acquire intangible assets $ 17,000,000      
Payments to acquire intangible assets, remainder of calendar year 10,100,000      
Payments to acquire intangible assets, calendar year two 6,700,000      
Payments to acquire intangible assets, calendar year three $ 200,000      
Intangible assets   5,600,000    
Indemnification Agreement        
Purchase Commitment, Excluding Long-term Committment [Line Items]        
Indemnifications accrual   $ 0   $ 0
v3.8.0.1
Commitments and Contingencies - Guarantees (Details) - USD ($)
Sep. 30, 2017
Jun. 30, 2017
Indemnification Agreement    
Loss Contingencies [Line Items]    
Indemnifications accrual $ 0 $ 0
v3.8.0.1
Commitments and Contingencies - Other Investments (Details)
1 Months Ended 3 Months Ended 9 Months Ended 15 Months Ended
Mar. 31, 2016
Sep. 30, 2017
USD ($)
Sep. 30, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Jan. 10, 2017
CNY (¥)
Jan. 10, 2017
USD ($)
Mar. 29, 2016
USD ($)
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')                
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]                
Consideration transferred to acquire interest in joint venture   $ 10,000,000            
Parent Company | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')                
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]                
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 51.00%              
Chongqing Funds | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')                
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]                
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 49.00%              
Payments to acquire interest in joint venture   87,000,000   $ 120,000,000        
Corporate Joint Venture                
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]                
Contractual Obligation, Payment     $ 30,100,000          
Total price payable under EPC Contract           ¥ 540,000,000 $ 78,000,000  
Contractual Obligation, Future Minimum Payments Due, Remainder of Calendar Year             58,300,000  
Contractual Obligation, Due in Second Calendar Year             19,700,000  
Corporate Joint Venture | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')                
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]                
Initial capitalization of joint venture               $ 330,000,000
Corporate Joint Venture | Design Fees                
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]                
Total price payable under EPC Contract           19,525,052 2,800,000  
Corporate Joint Venture | Construction and Procurement Fees                
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]                
Total price payable under EPC Contract           ¥ 520,474,948 $ 75,200,000  
Indemnification Agreement                
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]                
Indemnifications accrual   $ 0 $ 0 $ 0 $ 0