Allegro MicroSystems Reports Second Quarter 2025 Results

Core Viewpoint - Allegro MicroSystems reported financial results for the second quarter of fiscal year 2025, showing a total net sales of $187 million, with growth in both Automotive and Industrial markets, and a non-GAAP EPS of $0.08, indicating strong demand for its semiconductor solutions [2][4]. Financial Performance - Second quarter net sales were $187.4 million, compared to $166.9 million in the previous quarter, reflecting a sequential growth [3]. - Automotive segment sales were $141.9 million, up from $131.2 million in the previous quarter, while Industrial and Other sales increased to $45.5 million from $35.7 million [3][17]. - Year-over-year, total net sales decreased by 32% from $275.5 million in the same quarter last year [17]. Profitability Metrics - The GAAP gross margin for the second quarter was 45.7%, compared to 44.8% in the previous quarter and 57.9% in the same quarter last year [3][27]. - Non-GAAP gross margin was reported at 48.8%, consistent with the previous quarter, but down from 58.3% year-over-year [3][24]. - The company recorded a GAAP operating income of $4.1 million, a significant decrease from $72.9 million in the same quarter last year [3][27]. Business Outlook - For the third quarter of fiscal year 2025, Allegro expects net sales to range between $170 million and $180 million, driven by vehicle electrification and inventory rebalancing [4]. - The company anticipates a gross margin between 49% and 51% for the upcoming quarter [4]. Cash Flow and Balance Sheet - Cash and cash equivalents at the end of the quarter were $188.8 million, down from $212.1 million at the end of the previous quarter [18]. - Total assets decreased to $1.49 billion from $1.53 billion, while total liabilities increased to $553.4 million from $398.9 million [19]. Company Overview - Allegro MicroSystems specializes in power and sensing semiconductor solutions, focusing on automotive and industrial markets, with a diverse product portfolio aimed at vehicle electrification and energy-efficient systems [8].