Alpha and Omega Semiconductor Limited (AOSL) Reveals DOJ Investigation
In August 2019, Alpha and Omega filed its full year 2019 financial results, assuring that “despite the ongoing challenges of current market conditions… is consistently making progress toward calendar 2021 annual revenue target of $600 million.” Then, On February 5, 2020, Alpha and Omega revealed that the U.S. Department of Justice “recently commenced an investigation into the Company’s compliance with export control regulations with Huawei and its affiliates” and went on to disclose that as a result, the Department of Commerce had requested a suspension of its product shipments to Huawei, which would consequently reduce revenue by approximately $4 million to $5 million in the March quarter. On this news, Alpha and Omega’s stock price fell almost 12% to close at $10.85 per share.