Allegro MicroSystems(ALGM) - 2025 Q3 - Quarterly Report

Financial Performance - Total net sales for the three-month period ended December 27, 2024, were $177.872 million, a decrease of 30.2$254.984 million for the same period in 2023[18]. - Gross profit for the three-month period ended December 27, 2024, was $81.215 million, down from$133.828 million in the same period last year, reflecting a gross margin decline[18]. - The net loss attributable to Allegro MicroSystems, Inc. for the three-month period ended December 27, 2024, was $6.860 million, compared to a net income of$33.345 million for the same period in 2023[18]. - The company reported a comprehensive loss of $14.361 million for the three-month period ended December 27, 2024, compared to a comprehensive income of$36.965 million for the same period in 2023[20]. - Net loss for the nine-month period ended December 27, 2024, was $58,025 thousand, compared to a net income of$159,962 thousand for the same period in 2023[28]. - For the three-month period ended December 27, 2024, total net sales were $177,872, a decrease of 30.3$254,984 for the same period in 2023[43]. - Automotive segment sales for the three-month period ended December 27, 2024, were $130,066, down 33.3$194,764 in the prior year[43]. - The company reported net sales of $532,182 for the nine-month period ended December 27, 2024, a decline of 34.1$808,786 for the same period in 2023[43]. Operating Expenses - Operating expenses for the three-month period ended December 27, 2024, totaled $81.256 million, compared to$97.142 million for the same period in 2023, indicating a reduction of 16.4%[18]. - Research and development expenses for the nine-month period ended December 27, 2024, were $132.031 million, slightly up from$130.799 million for the same period in 2023[18]. - Depreciation and amortization for the nine-month period was $48,578 thousand, slightly lower than$49,548 thousand in the prior year[28]. - Total depreciation expense for the three-month period ended December 27, 2024, was $9,409, compared to$15,124 for the same period in 2023[50]. - Intangible assets amortization expense was $6,363 for the three-month period ended December 27, 2024, compared to$5,071 for the same period in 2023[54]. Cash Flow and Assets - Cash and cash equivalents decreased to $138.452 million as of December 27, 2024, from$212.143 million as of March 29, 2024[16]. - Total assets decreased to $1.441 billion as of December 27, 2024, from$1.531 billion as of March 29, 2024[16]. - Cash provided by operating activities for the nine-month period ended December 27, 2024, was $41,560 thousand, a decrease from$168,951 thousand in the prior year[28]. - Total cash and cash equivalents and restricted cash at the end of the period was $148,962 thousand, down from$223,735 thousand at the end of the previous year[28]. - Trade accounts receivable, net, decreased to $83,805 as of December 27, 2024, from$118,508 as of March 29, 2024[48]. - Total inventories increased to $193,140 as of December 27, 2024, compared to$162,302 as of March 29, 2024[49]. Debt and Financing - Long-term debt increased to $374.729 million as of December 27, 2024, compared to$249.611 million as of March 29, 2024[16]. - The total debt as of December 27, 2024, was $376,103, an increase from$253,540 as of March 29, 2024[56]. - The Company entered into a new $400,000 tranche of term loans maturing in 2030, primarily used for stock repurchase and refinancing existing debt[58]. - The 2023 Revolving Credit Facility was increased to$256,000 as of August 6, 2024[57]. - The company was in compliance with its debt covenants as of December 27, 2024[59]. Stock and Equity - The company had 184,011,189 weighted average shares outstanding for the three-month period ended December 27, 2024[18]. - The basic net loss per share attributable to Allegro MicroSystems, Inc. stockholders for the three-month period ended December 27, 2024, was $(0.04)[67]. - The company repurchased common stock amounting to$853,921 thousand during the nine-month period[28]. - The company repurchased 28,750,000 shares of common stock for $628,256 during the First Closing of the Share Repurchase Agreement[78]. - The company completed the Second Closing of the Share Repurchase Agreement, repurchasing 10,017,315 shares for$225,549[79]. - The company granted 1,486,141 Restricted Stock Units (RSUs) during the nine-month period ended December 27, 2024[69]. - The company had 2,573,920 Performance Stock Units (PSUs) outstanding as of December 27, 2024[70]. Other Financial Metrics - The company incurred a loss on change in fair value of forward repurchase contracts amounting to $34,752 thousand[28]. - The company recorded a foreign currency translation adjustment loss of$5,243 thousand[28]. - The company recognized a net loss of $2,804 related to the PSL equity interests transaction[84]. - The company recorded inventory provisions of$2,739 for the three-month period ended December 27, 2024, compared to $429 for the same period in 2023[49]. - The estimated useful lives of machinery and equipment were increased from seven years to ten years, resulting in a decrease in depreciation expense by$4,460 for the three-month period ended December 27, 2024[52]. - The fair value of the company's debt was $376,406 as of December 27, 2024[47]. - The effective tax rate for the nine-month period ended December 27, 2024, was 13.7%, compared to 9.9% for the same period in 2023[72]. - One distributor accounted for 11.4% of total net sales for the three-month period ended December 27, 2024[36]. - The company is evaluating the impact of new accounting standards that will require additional disclosures starting in 2026 and 2027[38][39][40]. - The Company expanded its global manufacturing capacities, including operations in the Philippines and the acquisition of Crocus Technology International Corp.[52].