UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 29, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _____________ Commission File Number: 001-39675 ALLEGRO MICROSYSTEMS, INC. (Exact name of registrant as specified in its charter) Delaware 46-2405937 ( ...

Financial Data and Key Metrics Changes - Sales for Q2 2024 were $276 million, representing a 16% year-over-year increase, with non-GAAP earnings per share reaching a record $0.40, up 29% year-over-year [7][17] - Gross margin was 58.3%, operating income was 31.3%, and adjusted EBITDA was 37.1% of sales [17][19] - Automotive sales accounted for $206 million, or 75% of total sales, increasing 31% year-over-year [17] Business Line Data and Key Metrics Changes - E-Mobility sales increased by 60% year-over-year, now representing 50% of automotive sales, up from 41% a year ago [8][17] - Industrial sales were $51 million, declining 25% sequentially but increasing 6% year-over-year [12][17] - Other sales, including consumer applications, were down 42% year-over-year, reflecting inventory destocking [17] Market Data and Key Metrics Changes - Sales by geography were balanced, with 25% in China, 21% in the Americas, 20% in the rest of Asia, and 17% each in Europe and Japan [18] - Japan saw a 14% sequential growth, while China experienced a 12% sequential growth [18] Company Strategy and Development Direction - The company continues to focus on growth in e-mobility and select industrial markets, including clean energy and automation [7][10] - The recent acquisition of Crocus is expected to enhance Allegro's magnetic sensing capabilities and accelerate the deployment of TMR technology [15][21] - The company aims for low double-digit sales growth and above 32% operating margin in the long term [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about opportunities in e-mobility and clean energy despite macroeconomic challenges in China [9][10] - The company anticipates a sequential decline in industrial sales due to cautious behavior from OEMs and inventory management [12][13] - Management remains confident in the long-term growth model established in March 2023 [12][14] Other Important Information - The company expects Q3 sales to be in the range of $250 million to $260 million, reflecting normal seasonality and impacts from the UAW strike [22][23] - Gross margin for Q3 is projected to be approximately 54%, with operating expenses expected to decline by 4% sequentially [23] Q&A Session Summary Question: Trends in bookings in China and impact of UAW strike - Management noted a strong return in bookings in China and acknowledged some order movement due to the UAW strike, but the overall impact is not material [28][30] Question: Distribution inventory levels - Current distribution inventory is at the higher end of the target range of 10 to 12 weeks, with stabilization observed [33][34] Question: Industrial inventory correction - Management indicated that industrial sales are expected to be muted in Q3 due to inventory levels and cautious demand [36][37] Question: Gross margin guidance - Gross margin is expected to be around 54% in Q3, with impacts from product mix and channel inventory management [42][43] Question: Auto segment outlook - Management expects e-Mobility to remain strong, while ICE shipments may see a decline, but overall auto sales are projected to grow year-over-year [46][50] Question: Crocus acquisition rationale - The acquisition is aimed at accelerating the roadmap for TMR technology and enhancing the product portfolio for automotive applications [60][62]

Financial Performance - Net sales increased to $278.3 million in Q2 2023, up from $217.8 million in Q2 2022, representing a 27.8% year-over-year growth[12] - Gross profit rose to $157.9 million in Q2 2023, compared to $118.4 million in Q2 2022, reflecting a 33.4% increase[12] - Operating income surged to $70.7 million in Q2 2023, a significant jump from $14.7 million in Q2 2022, marking a 380% increase[12] - Net income attributable to Allegro MicroSystems, Inc. reached $60.9 million in Q2 2023, up from $10.2 million in Q2 2022, a 494% increase[12] - Net income for the three months ended June 30, 2023, was $60.889 million, compared to $10.283 million for the same period in 2022[21] - Comprehensive income attributable to Allegro MicroSystems, Inc. reached $60.4 million in Q2 2023, compared to $3.5 million in Q2 2022[15] - Net income attributable to common stockholders for the three months ended June 30, 2023, was $60.889 million, compared to $10.283 million for the same period in 2022[53] - Basic net income per share for the three months ended June 30, 2023, was $0.32, compared to $0.05 for the same period in 2022[53] - Diluted net income per share for the three months ended June 30, 2023, was $0.31, compared to $0.05 for the same period in 2022[53] Cash and Assets - Cash and cash equivalents stood at $353.4 million as of June 30, 2023, slightly up from $351.6 million as of March 31, 2023[9] - Total assets increased to $1.23 billion as of June 30, 2023, compared to $1.18 billion as of March 31, 2023[9] - The company's cash and cash equivalents and restricted cash at the end of the period on June 30, 2023, were $362.321 million[21] - Total equity as of June 30, 2023, was $1,027.765 million, compared to $763.360 million as of June 24, 2022[18] - The company's total assets measured at fair value were $117,796 million as of June 30, 2023, compared to $129,077 million as of March 31, 2023, with a decrease in marketable securities from $19,929 million to $5,222 million[35] Liabilities and Equity - Total liabilities decreased to $206.3 million as of June 30, 2023, down from $214.3 million as of March 31, 2023[9] - Retained earnings increased to $371.2 million as of June 30, 2023, up from $310.3 million as of March 31, 2023[9] - Trade accounts receivable, net, increased to $121,506 million as of June 30, 2023, from $111,290 million as of March 31, 2023, with returns and sales allowances rising to $37,094 million from $26,269 million[37] Research and Development - Research and development expenses grew to $43.0 million in Q2 2023, up from $33.9 million in Q2 2022, reflecting a 26.9% increase[12] Sales Breakdown - Total net sales for the three months ended June 30, 2023, were $278.293 million, with automotive sales contributing $189.698 million and industrial sales contributing $68.184 million[31] - Power integrated circuits sales were $103.988 million, and magnetic sensors sales were $174.305 million for the three months ended June 30, 2023[32] - Net sales in the Americas increased to $57,332 million in Q2 2023, up from $34,878 million in Q2 2022, driven by strong growth in the United States ($48,824 million vs. $28,391 million) and Other Americas ($8,508 million vs. $6,487 million)[33] - EMEA net sales grew to $55,388 million in Q2 2023, compared to $35,333 million in Q2 2022, with Europe being the primary contributor[33] - Asia net sales reached $165,573 million in Q2 2023, up from $147,542 million in Q2 2022, led by Greater China ($62,216 million vs. $55,116 million) and South Korea ($29,513 million vs. $20,979 million)[33] - Total net sales for Q2 2023 were $278,293 million, a significant increase from $217,753 million in Q2 2022[33] Inventory and Property - Inventories grew to $174,170 million as of June 30, 2023, up from $151,301 million as of March 31, 2023, with work in process increasing to $119,630 million from $98,836 million[40] - Property, plant, and equipment, net, increased to $285,200 million as of June 30, 2023, from $263,099 million as of March 31, 2023, with machinery and equipment being the largest component at $641,453 million[41] Goodwill and Intangible Assets - Goodwill increased to $28,048 million as of June 30, 2023, from $27,691 million as of March 31, 2023, due to adjustments and foreign currency translation[44] - Intangible assets, net, were $51,969 million as of June 30, 2023, with patents being the largest component at $22,105 million[45] Credit and Financing - The company entered into a $224 million secured revolving credit facility with a $20 million letter of credit subfacility, maturing on June 21, 2028[47] - Interest on the 2023 Revolving Credit Agreement ranges from Term SOFR plus 1.50% to 1.75% or the highest of Federal funds rate plus 0.50%, prime lending rate, or one-month Term SOFR plus 1.0% plus 0.50% to 0.75%[48] - The company is required to maintain a Total Net Leverage Ratio of no more than 4.00 to 1.00, which can be increased to 4.50 to 1.00 for four fiscal quarters after an acquisition exceeding $500 million[48] Stock-Based Compensation - Stock-based compensation for the three months ended June 30, 2023, was $11.042 million, compared to $34.136 million for the same period in 2022[21] - Total stock-based compensation expense for the three months ended June 30, 2023, was $11.042 million, compared to $34.136 million for the same period in 2022[60] Tax and Shareholder Information - The company's effective tax rate for the three months ended June 30, 2023, was 10.6%, compared to 16.0% for the same period in 2022[61] - Sanken holds approximately 51.2% of the company's outstanding common stock as of June 30, 2023[62] Customer and Supplier Relationships - One customer accounted for 14.8% of the company's outstanding trade accounts receivable as of June 30, 2023[27] - For the three months ended June 30, 2023, one customer accounted for 12.2% of total net sales[27] - Net sales to Sanken dropped to $0 in Q2 2023 from $41,709 in Q2 2022, reflecting the termination of the distribution agreement[63] - The company made a one-time payment of $5,000 to Sanken for the cancellation of exclusive distribution rights in Japan[63] - Purchases from PSL increased to $16,102 in Q2 2023 from $14,671 in Q2 2022[63] - The outstanding balance of the PSL Promissory Notes was $11,250 as of June 30, 2023[64] - PSL made quarterly payments totaling $1,005, including $67 of interest, in Q2 2023[64] - The new Wafer Foundry Agreement with PSL has a three-year term with auto-renewal for subsequent one-year terms[63] - The company will provide a rolling annual forecast for three years, with the first two years being binding under the WFA[63] - Accounts payable to PSL totaled $5,091 as of June 30, 2023, up from $4,682 as of March 31, 2023[63] - The company allowed a one-time sales return from Sanken of resalable inventory worth $4,200[63] Market Risk - No material changes in market risk exposures since March 31, 2023[101]

Financial Data and Key Metrics - Q1 2024 sales reached a record $278 million, up 28% YoY, with trailing 12-month sales hitting $1 billion [6] - Non-GAAP earnings per share were $0.39, a 63% YoY increase [6] - Gross margin was 57.8%, operating expenses were 27% of sales, and operating income was 30.8% [12] - Adjusted EBITDA was 36.3% of sales [12] - Automotive revenue grew 27% YoY, outpacing auto production growth of approximately 6% [7] - Industrial sales increased 70% YoY, driven by Clean Energy and Automation [8] - Magnetic sensor sales were $174 million, up 27% YoY, while power product sales were $104 million, up 29% YoY [13] Business Line Performance - Automotive sales accounted for 68% of total Q1 sales, with e-Mobility applications representing 48% of automotive sales, up from 39% in Q1 2023 [7][12] - Industrial sales reached a record $68 million, driven by Clean Energy and Automation [8][13] - Sales in Consumer and Computer Applications declined 30% sequentially and 27% YoY to $20 million [13] Market Performance - Sales in China declined 13% sequentially or 7% on a comparable 13-week basis, impacted by higher OEM finished goods inventory and emission standard transitions [17][18] - Sales by geography were balanced: 22% in China, 22% in the rest of Asia, 21% in the Americas, 20% in Europe, and 15% in Japan [14] Strategic Direction and Industry Competition - The company is focusing on e-Mobility, Clean Energy, and Automation, with sales in these areas increasing 63% YoY to $159 million, representing 57% of total sales [6] - The launch of the Power-Thru isolated gate driver, with a 50% smaller footprint and 40% efficiency improvement, highlights the company's commitment to innovation [9] - The company released its inaugural ESG report, aligning its corporate strategy with sustainability goals [10] Management Commentary on Business Environment and Outlook - Management expressed confidence in long-term growth targets, citing double-digit market growth projections for strategic areas and strong design win momentum [16] - Near-term caution was noted due to macroeconomic uncertainty, including rising interest rates, inflation, and geopolitical concerns, particularly in China [17][18] - Q2 2024 sales are expected to be between $270 million and $280 million, with gross margins projected between 56% and 57% [19] Other Key Information - The company closed a new $224 million revolving credit facility, enhancing liquidity [15] - Lead times declined by approximately 30% in Q1, with inventory levels expected to stabilize [15][34] - The effective tax rate for Q1 was 12.6%, slightly higher than guidance due to geographical income mix [15] Q&A Session Summary Question: Customer order lead times and backlog status [21] - Lead times have normalized to industry standards, with backlog now at normal levels [22] - Q2 guidance is largely covered by the existing backlog, with auto sales expected to increase marginally and Industrial/Other sales to remain flat or decline slightly [24] Question: Gross margin drivers and FX impact [25] - Q1 gross margin beat was primarily driven by favorable product mix and the transition in Japan's distribution channel, with FX impact expected to normalize in Q2 [26] Question: Industrial and Other segment performance [27] - Industrial segment growth is expected to moderate after strong quarters, with distribution channel inventory at target levels [28] Question: China market dynamics [29] - China's auto production declined 15% in H1 2023, with near-term choppiness expected due to emission standard transitions and elevated inventory levels [30][31] Question: Lead times and inventory levels [33] - Lead times have improved significantly, with further reductions planned, particularly for Industrial customers [34] - Inventory levels are expected to stabilize, with sufficient die bank to support customer needs [35] Question: Pricing and foundry costs [36] - Pricing in the automotive segment is value-based, with long-term agreements providing stability [37] - Input cost inflation has moderated, but ongoing discussions with suppliers are in place to manage future cost changes [38] Question: China inventory levels and EV market [42] - Dealer inventory in China is elevated due to the transition to stricter emission standards, but EV market growth remains strong [43] Question: Wafer allocation and margin impact [44] - Wafer allocation among suppliers (Polar, UMC, TSMC) is stable, with no significant impact expected on gross margins [45]

Automotive and Industrial Markets - The company's portfolio includes more than 1,000 products, focusing on sensor and power ICs for automotive and industrial markets[10] - The company's devices are critical for ADAS applications, enabling features like collision avoidance and automatic emergency braking[15] - The company's solutions are already used in vehicles with Level 1 ADAS features, with significant annual shipments[15] - The company's products are foundational to automotive and industrial electronic systems, enabling precise measurement of motion, speed, position, and current[10] - The company's innovations in Hall-effect and xMR magnetic sensors and BCD power ICs support increased driving range for EVs and improved energy efficiency[10] - The company's net sales in new areas such as automotive ADAS and data center markets have grown approximately 50% faster than the overall growth of the BLDC motor market over the last five years[21] - The company's content per vehicle increased by over 50% in a popular mid-sized 2022 model sedan as it transitioned from ICE to a battery EV[21] - The company's opportunity for content per vehicle in a standard ICE model is approximately $39, increasing to approximately $100 in an EV[21] - The company's current sensors, motor drivers, and position sensors are uniquely capable of delivering energy efficiency and motion control in clean energy and automation markets[21] - The company's ADAS-related content opportunity is expected to nearly double as systems transition to electromechanical braking and steer-by-wire[21] - Magnetic sensor ICs are used in automotive applications to improve safety and fuel efficiency, with current sensor ICs improving energy efficiency in EV powertrains[34][39] - Position sensor ICs are used in ADAS systems, HEV powertrains, and ICE powertrains for precise position measurement[34] - Speed sensor ICs reduce CO2 emissions and improve fuel economy in combustion engines[35] - Power ICs include motor driver ICs, regulator and LED driver ICs, and isolated gate drivers, used in automotive, industrial, and other markets[36] Electric Vehicle (EV) Market - The company's September 2022 acquisition of Heyday Integrated Circuits provides additional content opportunities in every fully electric vehicle[14] - The company expects its content per vehicle to increase due to research and development innovation in the EV market[14] - The company's 100V BCD wafer process technology and galvanically isolated current sensors are suited for higher voltage operation in solar and EV applications[16] Manufacturing and Operations - The company's strategic transition includes a fabless and asset-lite manufacturing model, reducing fixed costs[12] - The company's proprietary wafer fabrication processes are employed through subcontractor manufacturers, balancing flexibility and scale[12] - The company's gross margins have improved from a 40% range to the 56% range over the last several years due to its fabless strategy[26] - The company's manufacturing footprint has been reduced by approximately half over the last three years, with an additional 45% reduction from the closure of the AMTC Facility[26] - Gross margin improved from a historical range of 40% to 56%[30] - The company targets higher ASPs and gross margins by developing new products for growth markets[30] - The company's AMPI Facility is certified to ISO 45001 for environmental management and occupational health and safety[61] Research and Development - The company had 655 employees dedicated to research and development as of March 31, 2023[44] - The company owned 1,371 patents, including 742 active U.S. patents, as of March 31, 2023[53] - The company's intellectual property portfolio nearly doubled over the last three years[44] Sales and Distribution - Net sales to distributors accounted for 39.3%, 36.8%, and 37.3% of total net sales in fiscal years 2023, 2022, and 2021, respectively[40] - Sales to the largest non-affiliated distributor represented 10.8%, 11.0%, and 11.4% of net sales in fiscal years 2023, 2022, and 2021, respectively[40] - The company sold products to over 10,000 end customers annually in fiscal years 2023, 2022, and 2021[42] - Approximately half of net sales in fiscal years 2023, 2022, and 2021 were derived from the top 20 customers[42] - The company transitioned distribution in Japan from Sanken to third-party distributors and direct sales as of April 1, 2023[40] Environmental, Social, and Governance (ESG) - The company's ESG strategy includes reducing vehicle emissions, improving energy efficiency in EVs, and supporting renewable energy applications[39] - The company is a member of the Responsible Business Alliance (RBA) and requires suppliers to meet ISO 14001 and ISO 45001 standards[39] - The company has implemented energy, water, and waste reduction projects across facilities and participates in the CDP for climate change and water security[39] - The company faces increasing complexity in product design and procurement due to evolving environmental laws, regulations, and standards, such as the EU's RoHS Directive and China's RoHS equivalent[61][62] - Compliance with environmental and occupational health and safety laws could restrict the company's ability to expand or require modifications to processes, potentially incurring substantial expenses[61] Financial Performance and Risk Management - The company maintains a portfolio of cash and cash equivalents primarily in money market funds, with no investments exceeding a one-year maturity, limiting exposure to interest rate risk[166] - A 10% change in market interest rates is not expected to materially impact the company's financial position or results of operations[167] - The company reported foreign exchange gains of $1.0 million in fiscal 2023 and losses of $0.6 million in fiscal 2022[168] - A hypothetical 10% appreciation (decline) in the Euro against the U.S. dollar would have an immaterial impact on operating income[168] - A hypothetical 10% appreciation (decline) in the Philippine peso against the U.S. dollar would negatively (favorably) impact operating income by immaterial amounts[168] - The company has no foreign currency derivative instrument hedges as of March 31, 2023[168] - Inflationary factors, such as increases in overhead costs, may adversely affect the company's operating results, though historical impacts have not been material[169] Human Resources - The company employed 4,687 full-time employees as of March 31, 2023, with 3,578 in manufacturing and 655 in R&D[57] - In fiscal 2023, the company hired approximately 1,103 new employees[57]

Start Time: 08:30 January 1, 0000 9:04 AM ET Allegro MicroSystems, Inc. (NASDAQ:ALGM) Q4 2023 Earnings Conference Call May 11, 2023, 08:30 AM ET Company Participants Vineet Nargolwala - President and CEO Derek D’Antilio - SVP and Chief Financial Officer Jalene Hoover - VP of IR and Corporate Communications Conference Call Participants Blayne Curtis - Barclays Gary Mobley - Wells Fargo Vijay Rakesh - Mizuho Joshua Buchalter - TD Cowen Trevor Janoskie - Needham Operator Thank you for standing by. Welcome to t ...

Allegro MicroSystems, Inc. (NASDAQ:ALGM) Q3 2023 Earnings Conference Call January 31, 2023 8:30 AM ET Company Participants Jalene Hoover – Vice President of Investor Relations and Corporate Communications Vineet Nargolwala – President and Chief Executive Officer Derek D'Antilio – Chief Financial Officer Conference Call Participants Gary Mobley – Wells Fargo Joshua Buchalter – Cowen Blayne Curtis – Barclays Quinn Bolton – Needham & Company Vijay Rakesh – Mizuho Group Alessandra Vecchi – William Blair Operato ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________ FORM 10-Q _________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 23, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39675 _________________ ALLEGRO MICROSYSTEMS, INC. (Exact name of registrant as specifie ...

Title: Allegro MicroSystems, Inc. (NASDAQ:ALGM) Q2 2023 Earnings Conference Call October 27, 2022 8:30 AM ET Company Participants Leanne Sievers - President, Shelton Group Investor Relations Vineet Nargolwala - President & Chief Executive Officer Derek D'Antilio - Chief Financial Officer Conference Call Participants Gary Mobley - Wells Fargo Securities Joshua Buchalter - Cowen Blayne Curtis - Barclays Alessandra Vecchi - William Blair Quinn Bolton - Needham & Company Vijay Rakesh - Mizuho Securities Operato ...