Alpha & Omega Semiconductor stock plunged 13.29% in the pre-market trading session on Thursday.
The semiconductor company reported disappointing fiscal second-quarter 2025 earnings results, with an adjusted operating income of $3 million and an adjusted gross margin of 24.2%. More concerning, AOSL posted an operating loss of $5.9 million, missing market expectations. Despite a 4.8% year-over-year increase in revenue to $173.2 million, the company's weak profitability and lackluster guidance for the current quarter weighed heavily on investor sentiment.
For the fiscal third quarter ending in March, AOSL expects revenue in the range of $148 million to $168 million, indicating further challenges ahead.