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Allegro MicroSystems(ALGM) - 2025 Q4 - Annual Results
ALGMAllegro MicroSystems(ALGM)2025-05-08 11:03
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Financial Performance - Fourth quarter sales increased by 8% sequentially to 193million,withtotalnetsalesforthefiscalyear2025reaching193 million, with total net sales for the fiscal year 2025 reaching 725 million[1][2] - Automotive segment sales were 140.88millionforthefourthquarter,upfrom140.88 million for the fourth quarter, up from 130.07 million in the previous quarter, while industrial and other sales were 51.94million[2][3]−Non−GAAPdilutedEPSforthefourthquarterwas51.94 million[2][3] - Non-GAAP diluted EPS for the fourth quarter was 0.06, compared to 0.07inthepreviousquarter,and0.07 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 192millionto192 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 192.8million,adecreaseof20192.8 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 725.0million,down31725.0 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 14.74millioninthefourthquarter,comparedtoanetlossof14.74 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,reflectingaNon−GAAPGrossMarginof45.687,883,000, 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,withanAdjustedEBITDAMarginof14.828,451,000, 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 45.84millioninthepreviousyear[2][3]−Allegro′stotaloperatingexpensesforthefourthquarterwere45.84 million in the previous year[2][3] - Allegro's total operating expenses for the fourth quarter were 93.08 million, down from 107.35millioninthesamequarterlastyear[2][3]−GAAPOperatingExpensesforthethree−monthperiodendedMarch28,2025,totaled107.35 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]−Thecompanyincurredtransaction−relatedcostsof70,498,000[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 15.317millionforthetwelve−monthperiodendedMarch28,2025[32]CashFlowandAssets−Cashandcashequivalentsdecreasedto15.317 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 212.1millionasofMarch29,2024[21]−Totalcurrentassetsdecreasedto212.1 million as of March 29, 2024[21] - Total current assets decreased to 483.0 million in Q1 2025 from 572.2millioninQ12024[21]−Long−termdebtincreasedto572.2 million in Q1 2024[21] - Long-term debt increased to 344.7 million as of March 28, 2025, compared to 249.6millionasofMarch29,2024[21]−Thecompanygenerated249.6 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 12.8millioninthesameperiodof2024[23]−GAAPOperatingCashFlowforthethree−monthperiodendedMarch28,2025,was12.8 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]