Financial Data and Key Metrics Changes - In Q4, the company reported sales of $193 million, which was above the high end of guidance, and non-GAAP EPS of $0.06, also above guidance midpoint [17][24] - Gross margin for Q4 was 45.6%, which was below expectations due to a combination of product mix and lower absorption [27] - For the full fiscal year 2025, total sales were $725 million, reflecting a decline of 31% year over year, with a gross margin of 48% [30] Business Line Data and Key Metrics Changes - Automotive sales increased by 8% sequentially in Q4, led by e-mobility sales which rose 16% sequentially, but declined 23% year over year [24][31] - Industrial and other sales increased by 9% sequentially, driven by growth in data center and robotics, but declined 11% year over year [25][31] - Magnetic sensor sales increased by 3% sequentially, accounting for 61% of total sales, while power product sales increased by 19% sequentially [26] Market Data and Key Metrics Changes - Sales by geography were well balanced, with 27% in China, 24% in the rest of Asia, 20% in Japan, 16% in the Americas, and 13% in Europe [27] - The company noted a decline in distributor inventory levels by 25% exiting Q4 compared to the beginning of FY 2025, indicating a positive trend [22] Company Strategy and Development Direction - The company aims to accelerate new product development and expand its serviceable addressable market (SAM), targeting a $12 billion market opportunity [8] - Focus on relentless innovation to drive leadership in existing and new markets, particularly in automotive and industrial sectors [8][10] - Plans to execute operational efficiency initiatives to enhance gross margins and profitability, including a restructuring program expected to yield annualized cost savings of at least $15 million [29][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering an upcycle, with positive indicators such as declining customer inventories and increasing bookings [22] - The company anticipates first-quarter sales in the range of $192 million to $200 million, representing an 18% year-over-year increase [33] - Management remains optimistic about achieving double-digit sales growth and maintaining gross margins of 58% or greater in the long term [16] Other Important Information - The company received proposals from Onsemi for potential acquisition, but Onsemi ultimately withdrew its interest [19] - The effective tax rate for Q4 was 4%, with a full-year effective tax rate of 3%, primarily due to R&D credits [30] Q&A Session Summary Question: Update on China for China strategy - The company is making significant progress on its China for China supply chain initiative, with expectations for meaningful revenues to ship later in the year [39][40] Question: Gross margin outlook - The company expects to see benefits from cost reductions and restructuring initiatives impacting gross margins in Q1, with a target to return to 50% gross margin in the near term [41][44] Question: Backlog growth and design wins - The company reported strong design wins, with over 70% in strategic focus areas, indicating a positive trend in backlog growth [47] Question: Inventory levels and distribution channel - Distribution channel inventories declined by 25% year over year, and the company is optimistic about inventory levels normalizing [55] Question: Pricing pressures and tariff impacts - The company has not seen abnormal pricing pressures or requests for additional price declines from automotive customers due to tariffs [92][93] Question: Signs of potential shortages - The company is observing potential shortages in longer lead raw materials, particularly for data center products, as demand increases [96]

Financial Performance - Fourth quarter sales increased by 8% sequentially to $193 million, with total net sales for the fiscal year 2025 reaching $725 million[1][2] - Automotive segment sales were $140.88 million for the fourth quarter, up from $130.07 million in the previous quarter, while industrial and other sales were $51.94 million[2][3] - Non-GAAP diluted EPS for the fourth quarter was $0.06, compared to $0.07 in the previous quarter, and $0.25 for the full fiscal year[2][3] - The company expects total net sales for the first quarter of fiscal year 2026 to be in the range of $192 million to $202 million, implying an 18% year-over-year growth at the midpoint[3][4] - Total net sales for the three-month period ended March 28, 2025, were $192.8 million, a decrease of 20% compared to $240.6 million for the same period in 2024[19] - For the twelve-month period ended March 28, 2025, total net sales were $725.0 million, down 31% from $1,049.4 million in the previous year[19] Profitability and Margins - Gross margin for the upcoming quarter is projected to be between 46% and 48%[5] - Operating margin for the fourth quarter was reported at (6.8)%, while the full fiscal year operating margin was 6.6%[2][3] - The company incurred a net loss of $14.74 million in the fourth quarter, compared to a net loss of $7.07 million in the same quarter last year[2][3] - Non-GAAP Gross Profit for the three-month period ended March 28, 2025, was $87,883,000, reflecting a Non-GAAP Gross Margin of 45.6%[27] - Non-GAAP Operating Income for the three-month period ended March 28, 2025, was $17,385,000, resulting in a Non-GAAP Operating Margin of 9.0%[29] - Adjusted EBITDA for the three-month period ended March 28, 2025, was $28,451,000, with an Adjusted EBITDA Margin of 14.8%[30] Expenses - Research and development expenses for the fourth quarter were $47.62 million, slightly up from $45.84 million in the previous year[2][3] - Allegro's total operating expenses for the fourth quarter were $93.08 million, down from $107.35 million in the same quarter last year[2][3] - GAAP Operating Expenses for the three-month period ended March 28, 2025, totaled $93,077,000, while Non-GAAP Operating Expenses were $70,498,000[28] - The company incurred transaction-related costs of $7.144 million for the twelve-month period ended March 28, 2025[32] - The company reported a restructuring cost of $15.317 million for the twelve-month period ended March 28, 2025[32] Cash Flow and Assets - Cash and cash equivalents decreased to $121.3 million as of March 28, 2025, from $212.1 million as of March 29, 2024[21] - Total current assets decreased to $483.0 million in Q1 2025 from $572.2 million in Q1 2024[21] - Long-term debt increased to $344.7 million as of March 28, 2025, compared to $249.6 million as of March 29, 2024[21] - The company generated $20.4 million in net cash from operating activities for the three-month period ended March 28, 2025, compared to $12.8 million in the same period of 2024[23] - GAAP Operating Cash Flow for the three-month period ended March 28, 2025, was $20.353 million, representing 10.6% of net sales[35] - Non-GAAP Free Cash Flow for the twelve-month period ended March 28, 2025, was $56.943 million, with a margin of 5.4% of net sales[35] Taxation - The GAAP effective tax rate for the twelve-month period ended March 28, 2025, was 141.0%[32] - Non-GAAP effective tax rate for the twelve-month period ended March 28, 2025, was 9.5%[32] Strategic Focus - The company is focused on accelerating growth in strategic areas and improving profitability through operational efficiencies[2][3] - Non-GAAP financial measures are regularly reviewed to evaluate business performance and include metrics such as non-GAAP Gross Profit and Adjusted EBITDA[24] - The company plans to continue using non-GAAP financial measures to provide supplemental information regarding operating performance, excluding certain non-cash or infrequent items[25]

Fourth Quarter Sales Increased 8% Sequentially to $193 MillionMANCHESTER, N.H., May 08, 2025 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its fourth quarter and full fiscal year ended March 28, 2025. “During the fourth quarter, we delivered on our commitments with sales of $193 million, up 8% sequentially, and non-G ...

MANCHESTER, N.H., April 17, 2025 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (Nasdaq: ALGM) today announced it plans to release financial results for its fourth quarter and fiscal year 2025 prior to the market open on Thursday, May 8, 2025. Following the press release, Mike Doogue, President and Chief Executive Officer, and Derek D’Antilio, Executive Vice President and Chief Financial Officer, will host a conference call at 8:30 a.m. Eastern Time to discuss the Company’s results and business outlook. Ana ...

Core Viewpoint - Allegro MicroSystems has announced the withdrawal of Onsemi's unsolicited acquisition proposal, emphasizing the Board's commitment to acting in the best interests of its stockholders and the inadequacy of Onsemi's offers [1][2][3]. Company Positioning - The Board of Allegro has engaged with Onsemi and its advisors, providing a constructive path for a potentially improved offer, which Onsemi ultimately declined to pursue [3]. - Allegro is confident in its unique positioning to capitalize on mega-trends in electrification and autonomy through its differentiated sensing and power technologies [4]. Strategic Focus - The company aims to continue innovation to enhance competitive advantages while closely partnering with customers in sectors such as e-Mobility, clean energy, data centers, robotics, and automation [4]. - Allegro is committed to unlocking additional stockholder value through its strategic initiatives and market leadership [4]. Advisory Support - PJT Partners is serving as the financial advisor, while Davis Polk & Wardwell LLP is the legal advisor to Allegro [5].

Core Insights - Allegro MicroSystems has launched its new XtremeSense™ TMR current sensors, the CT4022 and CT4032, which are designed for high-voltage, power-dense clean energy applications [1][2] Product Features - The CT4022 and CT4032 sensors achieve a 2x reduction in root mean square (RMS) noise compared to previous TMR solutions and a 4x reduction compared to Hall-based integrated conductor solutions, enhancing power conversion efficiency [2] - These sensors are tailored for clean energy systems, maximizing power conversion efficiency, and feature integrated galvanic isolation for current sensing in applications up to 1000V [2][7] - The CT4022 is available in an 8-pin SOIC package, while the CT4032 comes in a 16-pin widebody SOIC package [3] Industry Impact - Allegro's commitment to quality and innovation positions it as a leader in automotive-grade technology, enhancing efficiency and sustainability across automotive, clean energy, and industrial automation sectors [6]

Core Insights - Allegro MicroSystems has appointed Rick Madormo as Senior Vice President of Worldwide Sales, effective March 24, 2025, to lead global sales and drive revenue growth in automotive and industrial markets [1][2] - Rick Madormo brings over 25 years of semiconductor sales experience, previously serving as Senior Vice President of Global Sales and Marketing at Wolfspeed, where he achieved record-setting results [2] - Allegro MicroSystems focuses on leveraging its expertise in magnetic sensing and power ICs to enhance efficiency and sustainability in automotive, clean energy, and industrial automation sectors [3] Company Developments - The transition of Max Glover to an advisory role until his departure on May 16, 2025, marks a significant leadership change within Allegro [1] - The company emphasizes its commitment to quality and innovation in "automotive grade" technology, reinforcing its position as a leader in the semiconductor industry [3] Industry Context - Allegro's strategic focus aligns with the growing trends of electrification and automation, positioning the company to capitalize on these market opportunities [2] - The semiconductor industry is experiencing a transformation, with companies like Allegro at the forefront of developing solutions that meet the demands of modern energy-efficient systems [3]

Core Viewpoint - Allegro received an unsolicited acquisition proposal from onsemi for $35.10 per share in cash, which the Allegro Board deemed inadequate after review [1]. Company Summary - Allegro Microsystems, Inc. has over three decades of expertise in magnetic sensing and power integrated circuits, focusing on automotive, clean energy, and industrial automation sectors [3]. - The company emphasizes enhancing efficiency, performance, and sustainability through its solutions, reinforcing its status as a pioneer in "automotive-grade" technology [3].

Core Viewpoint - Allegro MicroSystems has appointed Mike Doogue as the new President and CEO, succeeding Vineet Nargolwala, marking a significant leadership transition aimed at enhancing the company's growth in the automotive and industrial markets [1][3]. Company Leadership - Mike Doogue has been with Allegro for 27 years, progressing through various leadership roles, including Executive Vice President and Chief Technology Officer, and holds 75 U.S. patents related to semiconductors [2][3]. - The leadership transition is part of a long-term succession planning process by the Board, reflecting confidence in Doogue's ability to drive the company forward [3]. Strategic Focus - Under Doogue's leadership, Allegro aims to extend its technology leadership and capitalize on growth opportunities in the automotive and industrial sectors [3]. - The company emphasizes its commitment to "innovation with purpose," focusing on enhancing customer value and financial performance [3]. Company Background - Allegro MicroSystems specializes in power and sensing semiconductor solutions, leveraging over 30 years of expertise in magnetic sensing and power integrated circuits to drive advancements in automotive, clean energy, and industrial automation [4].

Core Insights - Allegro MicroSystems, Inc. is a global leader in power and sensing semiconductor solutions, focusing on motion control and energy-efficient systems [1][3] - The company will present at Morgan Stanley's Technology, Media & Telecom Conference on March 4, 2025, with CFO Derek D'Antilio participating in a fireside chat [1] - A live and archived webcast of the fireside chat will be available on the company's Investor Relations page [2] Company Overview - Allegro MicroSystems has over three decades of expertise in magnetic sensing and power integrated circuits (ICs), driving advancements in automotive, clean energy, and industrial automation [3] - The company emphasizes quality and innovation, reinforcing its status as a pioneer in "automotive grade" technology [3] - Allegro aims to enhance efficiency, performance, and sustainability across various industries [3]