Allegro MicroSystems(US:ALGM)2025-05-08 11:03Financial Performance - Fourth quarter sales increased by 8% sequentially to $193 million, with total net sales for the fiscal year 2025 reaching $725 million[1][2] - Automotive segment sales were $140.88 million for the fourth quarter, up from $130.07 million in the previous quarter, while industrial and other sales were $51.94 million[2][3] - Non-GAAP diluted EPS for the fourth quarter was $0.06, compared to $0.07 in the previous quarter, and $0.25 for the full fiscal year[2][3] - The company expects total net sales for the first quarter of fiscal year 2026 to be in the range of $192 million to $202 million, implying an 18% year-over-year growth at the midpoint[3][4] - Total net sales for the three-month period ended March 28, 2025, were $192.8 million, a decrease of 20% compared to $240.6 million for the same period in 2024[19] - For the twelve-month period ended March 28, 2025, total net sales were $725.0 million, down 31% from $1,049.4 million in the previous year[19] Profitability and Margins - Gross margin for the upcoming quarter is projected to be between 46% and 48%[5] - Operating margin for the fourth quarter was reported at (6.8)%, while the full fiscal year operating margin was 6.6%[2][3] - The company incurred a net loss of $14.74 million in the fourth quarter, compared to a net loss of $7.07 million in the same quarter last year[2][3] - Non-GAAP Gross Profit for the three-month period ended March 28, 2025, was $87,883,000, reflecting a Non-GAAP Gross Margin of 45.6%[27] - Non-GAAP Operating Income for the three-month period ended March 28, 2025, was $17,385,000, resulting in a Non-GAAP Operating Margin of 9.0%[29] - Adjusted EBITDA for the three-month period ended March 28, 2025, was $28,451,000, with an Adjusted EBITDA Margin of 14.8%[30] Expenses - Research and development expenses for the fourth quarter were $47.62 million, slightly up from $45.84 million in the previous year[2][3] - Allegro's total operating expenses for the fourth quarter were $93.08 million, down from $107.35 million in the same quarter last year[2][3] - GAAP Operating Expenses for the three-month period ended March 28, 2025, totaled $93,077,000, while Non-GAAP Operating Expenses were $70,498,000[28] - The company incurred transaction-related costs of $7.144 million for the twelve-month period ended March 28, 2025[32] - The company reported a restructuring cost of $15.317 million for the twelve-month period ended March 28, 2025[32] Cash Flow and Assets - Cash and cash equivalents decreased to $121.3 million as of March 28, 2025, from $212.1 million as of March 29, 2024[21] - Total current assets decreased to $483.0 million in Q1 2025 from $572.2 million in Q1 2024[21] - Long-term debt increased to $344.7 million as of March 28, 2025, compared to $249.6 million as of March 29, 2024[21] - The company generated $20.4 million in net cash from operating activities for the three-month period ended March 28, 2025, compared to $12.8 million in the same period of 2024[23] - GAAP Operating Cash Flow for the three-month period ended March 28, 2025, was $20.353 million, representing 10.6% of net sales[35] - Non-GAAP Free Cash Flow for the twelve-month period ended March 28, 2025, was $56.943 million, with a margin of 5.4% of net sales[35] Taxation - The GAAP effective tax rate for the twelve-month period ended March 28, 2025, was 141.0%[32] - Non-GAAP effective tax rate for the twelve-month period ended March 28, 2025, was 9.5%[32] Strategic Focus - The company is focused on accelerating growth in strategic areas and improving profitability through operational efficiencies[2][3] - Non-GAAP financial measures are regularly reviewed to evaluate business performance and include metrics such as non-GAAP Gross Profit and Adjusted EBITDA[24] - The company plans to continue using non-GAAP financial measures to provide supplemental information regarding operating performance, excluding certain non-cash or infrequent items[25]