Allegro MicroSystems(ALGM) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter sales reached $178 million, exceeding the midpoint of guidance, with non-GAAP EPS of $0.07[3] - The company reported a net loss of $6.860 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 $177.872 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 $532.182 million, down 34% from $808.786 million in the same period of 2023[20] - The company reported a net loss of $6.799 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 $130.066 million, while Industrial and other sales were $47.806 million, contributing to total net sales of $177.872 million for the quarter[4] - Automotive segment sales decreased by 33% to $130.066 million from $194.764 million year-over-year for the three-month period[20] - Industrial and other segment sales decreased by 21% to $47.806 million from $60.220 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 $81.256 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, slightly down from $43,510 in the previous quarter[29] Future Guidance - The company expects fourth quarter net sales to range between $180 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 $0.03 and $0.07[6] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $148.962 million, down from $223.735 million at the end of the previous period[24] - Total assets decreased to $1,441.740 million as of December 27, 2024, from $1,530.603 million as of March 29, 2024[22] - Total liabilities increased to $507.314 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 $8.183 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 $22,018 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, 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, 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]