Group 1 - Allegro MicroSystems, Inc. is highlighted as an automotive chipmaker with a positive outlook, suggesting a Buy rating for long-term investors [1] - The article emphasizes the importance of using market pullbacks as an opportunity to invest in Allegro MicroSystems [1] - The author has a background in technology analysis and is now also covering commodities and energy sectors, indicating a broad investment perspective [1]

Core Viewpoint - Allegro MicroSystems, Inc. will present at TD Cowen's 53rd Annual Technology, Media & Telecom Conference on May 29, 2025, highlighting its role in power and sensing semiconductor solutions for motion control and energy-efficient systems [1] Company Overview - Allegro MicroSystems, Inc. has over three decades of expertise in magnetic sensing and power integrated circuits (ICs), focusing on automotive, clean energy, and industrial automation [3] - The company emphasizes enhancing efficiency, performance, and sustainability through its solutions, reinforcing its status as a pioneer in "automotive grade" technology [3]

MAY 8, 2025 4QFY25 Investor Presentation This presentation may not be reproduced, forwarded to any person or published, in whole or in part. 2 4Q Financial & Business Update Company Overview Appendix ALLEGRO'S VALUES Introduction to our New CEO Forward-looking statements This presentation and the accompanying oral remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor pr ...

Core Viewpoint - Allegro MicroSystems, Inc. reported better-than-expected fourth-quarter financial results and provided first-quarter sales guidance above market estimates [1][2]. Financial Performance - The company posted adjusted earnings of $0.06 per share, surpassing market expectations of $0.05 per share [1][2]. - Quarterly sales reached $192.82 million, exceeding expectations of $185.28 million, representing an 8% sequential increase [1][2]. Future Guidance - For the first quarter, Allegro expects adjusted earnings between $0.06 and $0.10 per share, with sales projected between $192 million and $202 million [2]. Market Reaction - Following the earnings announcement, Allegro MicroSystems shares increased by 12.7%, closing at $21.07 [3]. Analyst Ratings - Needham analyst Quinn Bolton maintained a Buy rating on Allegro, lowering the price target from $30 to $25 [8]. - Barclays analyst Blayne Curtis maintained an Overweight rating, raising the price target from $22 to $23 [8].

Company Performance - Allegro MicroSystems reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $0.25 per share a year ago, representing an earnings surprise of 20% [1] - The company achieved revenues of $192.82 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.44%, but down from $240.58 million year-over-year [2] - Over the last four quarters, Allegro MicroSystems has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Allegro MicroSystems shares have declined approximately 14.5% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The current Zacks Rank for Allegro MicroSystems is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $192.27 million, and for the current fiscal year, it is $0.45 on revenues of $827.58 million [7] - The outlook for the Electronics - Semiconductors industry, where Allegro MicroSystems operates, is currently in the bottom 43% of Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - In Q4, the company reported sales of $193 million, exceeding the high end of guidance, with non-GAAP EPS of $0.06, above the midpoint of guidance [18] - Gross margin was 45.6%, operating margin was 9%, and adjusted EBITDA was 14.8% of sales [26] - For the full fiscal year 2025, total sales were $725 million, a decline of 31% year-over-year, with a gross margin of 48% [31] 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 [26] - Industrial and other sales increased by 9% sequentially, driven by growth in data center and robotics, but declined 11% year-over-year [26] - Magnetic sensor sales accounted for 61% of total sales, increasing by 3% sequentially, while power product sales increased by 19% sequentially [27] Market Data and Key Metrics Changes - Sales by geography were well balanced: 27% in China, 24% in the rest of Asia, 20% in Japan, 16% in the Americas, and 13% in Europe [28] - The company noted a 25% decline in distributor inventory levels exiting Q4 compared to the beginning of FY 2025, indicating a positive trend [25] Company Strategy and Development Direction - The company aims to accelerate new product development and expand its serviceable addressable market (SAM) to target a $12 billion market opportunity [10] - Focus areas include automotive and industrial markets, with a commitment to double-digit sales growth and maintaining gross margins of 58% or greater [17] - The company is implementing operational efficiency initiatives to enhance gross margins and profitability, including a restructuring program expected to yield annualized cost savings of at least $15 million [30] 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 [24] - The CEO emphasized the importance of innovation and operational efficiency to drive growth and shareholder value [17][65] - Management noted that there are no abnormal pricing pressures from automotive customers related to tariffs, maintaining a normal annual cadence in negotiations [92][95] Other Important Information - The company received proposals from Onsemi for potential acquisition, which were ultimately withdrawn after the board considered them [20] - The effective tax rate for Q4 was 4%, with a full-year effective tax rate of 3%, primarily due to research and development credits [31] 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 start shipping later in the year [41][42] Question: Gross margin outlook - The company expects to see benefits from cost reductions and restructuring initiatives impacting gross margins in Q1, with a long-term target of 58% [44][60] Question: Backlog growth and design wins - The company is seeing strong design wins in e-mobility and industrial sectors, contributing to backlog growth [50][51] Question: Inventory levels and distribution channel - Distribution channel inventories declined by 25% year-over-year, indicating a healthy inventory situation [57] Question: Competition in China - The company continues to see positive growth in China despite competition, with strong customer momentum and design wins [86][87]

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 ...