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Allegro MicroSystems(ALGM) - 2025 Q3 - Quarterly Results
ALGMAllegro MicroSystems(ALGM)2025-01-30 12:09

Financial Performance - Third quarter sales reached 178million,exceedingthemidpointofguidance,withnon−GAAPEPSof178 million, exceeding the midpoint of guidance, with non-GAAP EPS of 0.07[3] - The company reported a net loss of 6.860millionforthethirdquarter,comparedtoanetincomeof6.860 million for the third quarter, compared to a net income of 33.345 million in the same quarter last year[19] - Total net sales for the three-month period ended December 27, 2024, were 177.872million,adecreaseof30177.872 million, a decrease of 30% compared to 254.984 million for the same period in 2023[20] - For the nine-month period ended December 27, 2024, total net sales were 532.182million,down34532.182 million, down 34% from 808.786 million in the same period of 2023[20] - The company reported a net loss of 6.799millionforthethree−monthperiodendedDecember27,2024,comparedtoanetincomeof6.799 million for the three-month period ended December 27, 2024, compared to a net income of 33.402 million for the same period in 2023[24] Segment Performance - Automotive segment sales were 130.066million,whileIndustrialandothersaleswere130.066 million, while Industrial and other sales were 47.806 million, contributing to total net sales of 177.872millionforthequarter[4]−Automotivesegmentsalesdecreasedby33177.872 million for the quarter[4] - Automotive segment sales decreased by 33% to 130.066 million from 194.764millionyear−over−yearforthethree−monthperiod[20]−Industrialandothersegmentsalesdecreasedby21194.764 million year-over-year for the three-month period[20] - Industrial and other segment sales decreased by 21% to 47.806 million from 60.220millionyear−over−yearforthethree−monthperiod[20]GrossMarginandOperatingExpenses−Grossmarginforthequarterwas45.760.220 million year-over-year for the three-month period[20] Gross Margin and Operating Expenses - Gross margin for the quarter was 45.7% on a GAAP basis and 49.1% on a non-GAAP basis, compared to 52.5% and 54.6% respectively for the same period last year[4] - Operating expenses are projected to increase by approximately 5% sequentially to 72 million, primarily due to annual payroll tax resets[6] - Total operating expenses for the third quarter were 81.256million,downfrom81.256 million, down from 97.142 million year-over-year[19] - Research and Development Expenses for the three-month period ended December 27, 2024, were 43,317,slightlydownfrom43,317, slightly down from 43,510 in the previous quarter[29] Future Guidance - The company expects fourth quarter net sales to range between 180millionand180 million and 190 million, with gross margin anticipated between 46% and 48%[5][6] - Diluted EPS for the fourth quarter is expected to be between 0.03and0.03 and 0.07[6] Cash Flow and Assets - Cash and cash equivalents at the end of the period were 148.962million,downfrom148.962 million, down from 223.735 million at the end of the previous period[24] - Total assets decreased to 1,441.740millionasofDecember27,2024,from1,441.740 million as of December 27, 2024, from 1,530.603 million as of March 29, 2024[22] - Total liabilities increased to 507.314millionasofDecember27,2024,comparedto507.314 million as of December 27, 2024, compared to 398.887 million as of March 29, 2024[22] - The company reported a net cash used in operating activities of 8.183millionforthethree−monthperiodendedDecember27,2024[24]Non−GAAPMeasures−Non−GAAPfinancialmeasuresareregularlyreviewedtoevaluatebusinessperformance,includingnon−GAAPGrossProfitandnon−GAAPOperatingIncome[25]−Non−GAAPGrossMarginforthethree−monthperiodendedDecember27,2024,was49.18.183 million for the three-month period ended December 27, 2024[24] Non-GAAP Measures - Non-GAAP financial measures are regularly reviewed to evaluate business performance, including non-GAAP Gross Profit and non-GAAP Operating Income[25] - Non-GAAP Gross Margin for the three-month period ended December 27, 2024, was 49.1%, compared to 48.8% in the previous quarter[28] - Non-GAAP Operating Income for the three-month period ended December 27, 2024, was 19,188, compared to 22,018inthepreviousquarter,reflectingaNon−GAAPOperatingMarginof10.822,018 in the previous quarter, reflecting a Non-GAAP Operating Margin of 10.8%[30] - Adjusted EBITDA for the three-month period ended December 27, 2024, was 30,321, with an Adjusted EBITDA Margin of 17.0%[31] - Non-GAAP Profit before Tax for the three-month period ended December 27, 2024, was 12,855,comparedto12,855, compared to 15,555 in the previous quarter[32] Earnings Per Share - Basic Non-GAAP Earnings per Share for the three-month period ended December 27, 2024, was 0.07,consistentwiththepreviousquarter[34]−ThecompanyreportedaGAAPBasic(Loss)EarningsperShareof0.07, consistent with the previous quarter[34] - The company reported a GAAP Basic (Loss) Earnings per Share of (0.04) for the three-month period ended December 27, 2024, compared to $(0.18) in the previous year[34]