Allegro MicroSystems(ALGM) - 2024 Q4 - Annual Results

Financial Performance - Full Year 2024 sales increased by 8% to a record $1.05 billion[2] - Non-GAAP diluted earnings per share for the full year reached a record $1.35[3] - Q4 2024 net sales were $240.581 million, with automotive sales contributing $181.939 million[5] - Full year 2024 gross margin was 54.8% on a GAAP basis and 56.3% on a non-GAAP basis[5] - Q1 2025 net sales are expected to be between $160 million and $170 million[6] - Q1 2025 non-GAAP diluted earnings per share are projected to be in the range of $0.01 to $0.03[6] - Net sales for the three-month period ending March 29, 2024, were $240.581 million, a decrease of 11% compared to $269.445 million in the same period last year[13][15] - Gross profit for the three-month period ending March 29, 2024, was $123.248 million, down from $153.089 million in the same period last year[13] - Operating income for the three-month period ending March 29, 2024, was $15.897 million, a significant decrease from $63.104 million in the same period last year[13] - Net loss for the three-month period ending March 29, 2024, was $7.115 million, compared to a net income of $61.977 million in the same period last year[13] - Total net sales for the twelve-month period ending March 29, 2024, were $1.049367 billion, an 8% increase compared to $973.653 million in the same period last year[13][15] - Non-GAAP Gross Profit for the three months ended March 31, 2024, was $129.508 million, with a Non-GAAP Gross Margin of 53.8%[23] - Non-GAAP Gross Profit for the twelve months ended March 31, 2024, was $590.426 million, with a Non-GAAP Gross Margin of 56.3%[23] - Non-GAAP Operating Income for the twelve-month period ended March 29, 2024, was $298,598 thousand, up from $278,176 thousand in the previous year[25] - Non-GAAP Operating Margin for the twelve-month period ended March 29, 2024, was 28.5%, slightly down from 28.6% in the previous year[26] - Adjusted EBITDA for the three-month period ended March 29, 2024, was $73,878 thousand, compared to $87,242 thousand for the same period in 2023[27] - Adjusted EBITDA Margin for the twelve-month period ended March 29, 2024, was 34.7%, up from 33.7% in the previous year[27] - Non-GAAP Profit before Tax for the twelve-month period ended March 29, 2024, was $296,599 thousand, compared to $278,455 thousand in the previous year[28] - GAAP Operating Income for the three-month period ended March 29, 2024, was $15,897 thousand, down from $36,686 thousand in the same period in 2023[25] - GAAP Net Loss for Q1 2024 was $7.115 million, compared to a net income of $33.345 million in Q4 2023 and $61.977 million in Q1 2023[30] - Non-GAAP Net Income for Q1 2024 was $47.914 million, compared to $61.549 million in Q4 2023 and $71.567 million in Q1 2023[30] - Non-GAAP Diluted Earnings per Share for Q1 2024 was $0.25, compared to $0.32 in Q4 2023 and $0.37 in Q1 2023[30] Automotive Sales - Automotive sales grew by 17% year-over-year, driven by a 38% increase in e-Mobility[2] - Automotive market sales increased by 2% to $181.939 million for the three-month period ending March 29, 2024, compared to $178.802 million in the same period last year[15] Industrial Sales - Industrial market sales decreased by 29% to $43.789 million for the three-month period ending March 29, 2024, compared to $61.807 million in the same period last year[15] Cash Flow and Debt - The company made a $50 million voluntary payment on its term loan, reducing annualized interest expense by approximately $4 million[6] - Net cash provided by operating activities for the three months ended March 31, 2024, was $12.764 million, compared to $47.548 million for the same period in 2023[19] - Net cash used in investing activities for the three months ended March 31, 2024, was $14.272 million, compared to $30.405 million for the same period in 2023[19] - Net cash provided by financing activities for the three months ended March 31, 2024, was $730,000, compared to a net cash used of $3.304 million for the same period in 2023[19] - The company's cash and cash equivalents and restricted cash at the end of the period were $222.161 million, compared to $358.705 million at the end of the same period in 2023[19] - The company's net (decrease) increase in cash and cash equivalents and restricted cash for the three months ended March 31, 2024, was a decrease of $1.574 million, compared to an increase of $14.577 million for the same period in 2023[19] - The company's net (decrease) increase in cash and cash equivalents and restricted cash for the twelve months ended March 31, 2024, was a decrease of $136.544 million, compared to an increase of $68.906 million for the same period in 2023[19] - Non-GAAP Free Cash Flow for Q1 2024 was $17.336 million, representing 6.4% of net sales, compared to $56.943 million (5.4% of net sales) for the twelve-month period ending March 29, 2024[31] - Purchases of property, plant and equipment for Q1 2024 were $30.212 million, contributing to the Non-GAAP Free Cash Flow calculation[31] Research and Development - Research and development expenses for the three-month period ending March 29, 2024, were $45.839 million, an increase from $41.833 million in the same period last year[13] - Research and Development Expenses (Non-GAAP) for the twelve-month period ended March 29, 2024, were $159,934 thousand, up from $140,878 thousand in the previous year[24] Non-GAAP Adjustments - Total Non-GAAP Adjustments for the three months ended March 31, 2024, were $6.260 million, including $4.959 million for purchased intangible amortization and $734,000 for stock-based compensation[23] - Total Non-GAAP Adjustments for the twelve months ended March 31, 2024, were $15.897 million, including $9.282 million for purchased intangible amortization and $5.359 million for stock-based compensation[23] - Total Non-GAAP Adjustments for the twelve-month period ended March 29, 2024, were $101,802 thousand, compared to $67,109 thousand in the previous year[28] - Total Non-GAAP Adjustments for Q1 2024 were $35.766 million, including $13.218 million for impairment of long-lived assets and $9.618 million for stock-based compensation[30] Tax Rates - GAAP effective tax rate for Q1 2024 was 141.0%, significantly higher than 8.2% in Q4 2023 and 8.7% in Q1 2023[29] - Non-GAAP effective tax rate for Q1 2024 was 9.5%, compared to 9.8% in Q4 2023 and 11.6% in Q1 2023[29] Assets and Liabilities - Total assets as of March 29, 2024, were $1.530603 billion, an increase from $1.181155 billion as of March 31, 2023[17] - Long-term debt as of March 29, 2024, was $249.611 million, up from $25 million as of March 31, 2023[17] Operational Expenses - Non-GAAP Operating Expenses for the three-month period ended March 29, 2024, were $72,175 thousand, compared to $69,928 thousand for the same period in 2023[24] - Selling, General and Administrative Expenses (Non-GAAP) for the twelve-month period ended March 29, 2024, were $131,894 thousand, down from $133,982 thousand in the previous year[24] Transaction Costs - Transaction-related costs for Q1 2024 were $7.144 million, compared to $10.409 million in Q4 2023 and $544,000 in Q1 2023[30] Share Information - Basic weighted average common shares outstanding for Q1 2024 were 193,139,519, slightly higher than 192,724,541 in Q4 2023[30] Product and Technology - Record design wins exceeded $1 billion in fiscal year 2024[3] - The company introduced high voltage isolated gate drivers and added TMR technology to its portfolio during fiscal year 2024[3]