Allegro MicroSystems(US:ALGM)2025-10-31 12:39Financial Performance - Net sales for the three-month period ended September 26, 2025, were $214.294 million, an increase of 14.3% compared to $187.391 million for the same period in 2024[17] - Gross profit for the six-month period ended September 26, 2025, was $190.594 million, up from $160.433 million in the same period of 2024, reflecting a year-over-year increase of 18.8%[17] - Operating income for the three-month period ended September 26, 2025, was $6.243 million, compared to $4.067 million for the same period in 2024, indicating a year-over-year increase of 53.7%[17] - The company reported a net income attributable to Allegro MicroSystems, Inc. of $6.519 million for the three-month period ended September 26, 2025, compared to a net loss of $33.675 million in the same period of 2024[19] - Comprehensive income attributable to Allegro MicroSystems, Inc. for the three-month period ended September 26, 2025, was $6.313 million, compared to a loss of $28.312 million in the same period of 2024[19] - Allegro Microsystems reported a net income of $6,583,000 for the period ending June 27, 2025[23] - The company reported a net loss of $6.58 million for the six-month period, an improvement from a net loss of $51.23 million in the prior year[26] Expenses and Costs - Research and development expenses for the three-month period ended September 26, 2025, were $50.891 million, representing an increase of 16.5% from $43.510 million in the prior year[17] - The company incurred $974,000 and $1,574,000 in restructuring costs during the three- and six-month periods ended September 26, 2025, respectively, with cumulative costs reaching $7,334,000[78] - Allegro MicroSystems expects future restructuring charges of approximately $7,200,000 primarily related to severance and other employee-related benefits[79] - The company recorded a total pre-tax stock-based compensation expense of $13,681,000 for the three-month period ended September 26, 2025, compared to $11,545,000 for the same period in 2024[73] Assets and Liabilities - Total current assets as of September 26, 2025, were $469.460 million, a decrease from $483.036 million as of March 28, 2025[15] - Total liabilities decreased to $438.499 million as of September 26, 2025, from $489.861 million as of March 28, 2025[15] - The company’s total assets as of September 26, 2025, were $1.384 billion, a decrease from $1.421 billion as of March 28, 2025[15] - The company's total debt decreased to $287,688,000 as of September 26, 2025, from $346,126,000 as of March 28, 2025, a reduction of 17%[59] Equity and Stock Transactions - The total equity balance at September 27, 2024, was $938,708,000, reflecting a decrease from $1,109,842,000 at June 28, 2024[21] - The company issued 28,750,000 shares of common stock, raising $665,850,000 net of underwriting discounts[21] - Allegro Microsystems repurchased 38,767,315 shares of common stock, totaling $821,199,000[21] - The Company completed an equity offering of 28,750,000 shares at a public offering price of $24.00 per share, resulting in net proceeds of approximately $665,850,000[82] - The Company repurchased 10,017,315 shares of common stock for a total cash consideration of $225,549, using proceeds from the Refinanced 2023 Term Loan Facility and existing cash[84] Segment Performance - For the six-month period ended September 26, 2025, total net sales reached $417.7 million, a 17.9% increase from $354.3 million in the same period of 2024[44] - Automotive segment sales for the six-month period were $300.1 million, up 12.3% from $267.1 million year-over-year[44] - Industrial and Other segment sales increased by 34.8% to $117.6 million for the six-month period compared to $87.2 million in 2024[44] - Magnetic sensors contributed $259.9 million to total sales for the six-month period, representing a 6.6% increase from $243.8 million in the prior year[45] Cash Flow and Investments - Cash flows from operating activities for the six-month period were $81.98 million, significantly higher than $49.74 million in the same period of 2024[26] - Cash and cash equivalents at the end of the period were $126.81 million, down from $199.04 million at the end of the same period in 2024[26] - The company incurred $17.04 million in cash used for investing activities, a decrease from $20.95 million in the prior year[26] Compliance and Debt Management - The company was in compliance with its debt covenants as of September 26, 2025, indicating stable financial management[62] - The company entered into a new $375,000,000 tranche of term loans maturing in 2030, aimed at refinancing existing debt and supporting general corporate purposes[61] Shareholder Information - The basic net income per share attributable to Allegro MicroSystems stockholders was $0.04 for the three-month period ended September 26, 2025, compared to a loss of $0.18 for the same period in 2024[69] - Allegro MicroSystems' outstanding Restricted Stock Units (RSUs) increased to 3,193,179 shares as of September 26, 2025, from 2,330,344 shares at the beginning of the period[71] - The company granted 1,840,282 RSUs during the six-month period ended September 26, 2025, with a weighted-average grant date fair value of $27.03[71] Other Transactions - A loss of $34,752 was recognized due to the fair value of the forward repurchase contract in the condensed consolidated statements of operations[85] - As of September 26, 2025, Sanken held approximately 32.3% of the Company's outstanding shares of common stock[88] - The Company made a one-time payment of $5,000 to Sanken for the cancellation of Sanken's exclusive distribution rights in Japan[89] - The Short-Term Distribution Agreement with Sanken was extended by 12 months on March 31, 2025[90] - The Company agreed to discharge outstanding promissory notes from PSL valued at $10,350 in exchange for PSL equity interests[91] - Purchases from PSL totaled $9,124 and $17,394 for the three- and six-month periods ended September 26, 2025, respectively[93]