• Allegro MicroSystems Reports Second Quarter 2025 Results

    来源: Nasdaq GlobeNewswire / 31 10月 2024 06:00:04   America/Chicago

    MANCHESTER, N.H., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its second quarter ended September 27, 2024.

    “We delivered results in-line with our commitments. Second quarter sales were $187 million, with sequential growth in both Automotive and Industrial and Other end markets. Non-GAAP EPS was $0.08, at the high end of our outlook,” said Vineet Nargolwala, President and CEO of Allegro. “We are encouraged by the continued demand for our differentiated solutions and the progress made by our customers and partners to rebalance their inventories. We continue to invest for growth to extend our market leadership. The accelerating pace of our new product introductions, as evidenced by our latest product releases, sets the stage for significant growth momentum in the near future.”

    Second Quarter Financial Highlights:

    In thousands, except per share data Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited) 
    Net Sales               
    Automotive $141,893  $131,184  $197,321  $273,077  $382,751 
    Industrial and other  45,498   35,735   78,188   81,233   171,051 
    Total net sales $187,391  $166,919  $275,509  $354,310  $553,802 
    GAAP Financial Measures               
    Gross margin %  45.7%  44.8%  57.9%  45.3%  57.3%
    Operating margin %  2.2%  (6.4)%  26.5%  (1.9)%  25.9%
    Diluted EPS $(0.18) $(0.09) $0.34  $(0.27) $0.65 
    Non-GAAP Financial Measures               
    Gross margin %  48.8%  48.8%  58.3%  48.8%  58.1%
    Operating margin %  11.7%  6.0%  31.3%  9.0%  31.0%
    Diluted EPS $0.08  $0.03  $0.40  $0.11  $0.79 

    Business Outlook

    For the third quarter of fiscal year 2025 ending December 27, 2024, the Company expects net sales to be in the range of $170 million to $180 million. This outlook comprehends continued progress toward vehicle electrification and ongoing inventory rebalancing as reflected in the latest third-party estimates, as well as typical December quarter seasonality. The Company also estimates the following results on a non-GAAP basis:

    • Gross Margin is expected to be between 49% and 51%,
    • The Company made a voluntary $25 million payment on its term loan facility on October 31, 2024 and now expects Interest Expense to be approximately $6 million, and
    • Diluted Earnings per Share are expected to be between $0.04 and $0.08.

    Allegro has not provided a reconciliation of its third fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Interest Expense, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

    Earnings Webcast

    A webcast will be held on Thursday, October 31, 2024 at 8:30 a.m., Eastern Time. Vineet Nargolwala, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.

    The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

    About Allegro MicroSystems

    Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and clean energy applications.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors affecting our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

    Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

    Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the "SEC"). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; our principal stockholders has substantial control over us; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

    You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

    This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

    This press release may not be reproduced, forwarded to any person or published, in whole or in part.

      
    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share amounts)
    (Unaudited)    		 
      
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
    Net sales $187,391  $275,509  $354,310  $553,802 
    Cost of goods sold  101,729   116,006   193,877   236,349 
    Gross profit  85,662   159,503   160,433   317,453 
    Operating expenses:            
    Research and development  43,510   43,428   88,714   86,403 
    Selling, general and administrative  38,085   43,160   78,282   87,389 
    Total operating expenses  81,595   86,588   166,996   173,792 
    Operating income (loss)  4,067   72,915   (6,563)  143,661 
    Interest and other (expense) income  (12,398)  156   (18,341)  (2,486)
    Loss on change in fair value of forward repurchase contract  (34,752)  —   (34,752)  — 
    (Loss) income before income taxes  (43,083)  73,071   (59,656)  141,175 
    Income tax (benefit) provision  (9,470)  7,400   (8,430)  14,615 
    Net (loss) income  (33,613)  65,671   (51,226)  126,560 
    Net income attributable to non-controlling interests  62   54   124   93 
    Net (loss) income attributable to Allegro MicroSystems, Inc. $(33,675) $65,617  $(51,350) $126,467 
    Net (loss) income per common share attributable to Allegro MicroSystems, Inc.:            
    Basic $(0.18) $0.34  $(0.27) $0.66 
    Diluted $(0.18) $0.34  $(0.27) $0.65 
    Weighted average shares outstanding:            
    Basic  189,182,850   192,431,094   191,324,281   192,214,210 
    Diluted  189,182,850   195,100,855   191,324,281   195,055,495 
                     

    Supplemental Schedule of Total Net Sales

    The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

      Three-Month Period Ended  Change  Six-Month Period Ended  Change 
      September 27,
    2024    		  September 29,
    2023    		  Amount  %  September 27,
    2024    		  September 29,
    2023    		  Amount  % 
      (Dollars in thousands)  (Dollars in thousands) 
    Automotive $141,893  $197,321  $(55,428)  (28)% $273,077  $382,751  $(109,674)  (29)%
    Industrial and other  45,498   78,188   (32,690)  (42)%  81,233   171,051   (89,818)  (53)%
    Total net sales $187,391  $275,509  $(88,118)  (32)% $354,310  $553,802  $(199,492)  (36)%


     
    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)
     
      September 27,
    2024    		  March 29,
    2024    		 
      (Unaudited)    
    Assets      
    Current assets:      
    Cash and cash equivalents $188,751  $212,143 
    Restricted cash  10,287   10,018 
    Trade accounts receivable, net  76,985   118,508 
    Inventories  176,648   162,302 
    Prepaid income taxes  38,636   31,908 
    Prepaid expenses and other current assets  32,253   33,584 
    Current portion of related party notes receivable  —   3,750 
    Total current assets  523,560   572,213 
    Property, plant and equipment, net  325,051   321,175 
    Deferred income tax assets  61,839   54,496 
    Goodwill  203,151   202,425 
    Intangible assets, net  266,753   276,854 
    Related party notes receivable, less current portion  —   4,688 
    Equity investment in related party  30,186   26,727 
    Other assets  81,577   72,025 
    Total assets $1,492,117  $1,530,603 
    Liabilities, Non-Controlling Interests and Stockholders’ Equity      
    Current liabilities:      
    Trade accounts payable $50,245  $35,964 
    Amounts due to related party  5,546   1,626 
    Accrued expenses and other current liabilities  62,742   76,389 
    Current portion of long-term debt  5,475   3,929 
    Total current liabilities  124,008   117,908 
    Long-term debt  396,056   249,611 
    Other long-term liabilities  33,345   31,368 
    Total liabilities  553,409   398,887 
    Commitments and contingencies      
    Stockholders’ Equity:      
    Preferred stock  —   — 
    Common stock  1,840   1,932 
    Additional paid-in capital  993,988   694,332 
    (Accumulated deficit) retained earnings  (31,931)  463,012 
    Accumulated other comprehensive loss  (26,583)  (28,841)
    Equity attributable to Allegro MicroSystems, Inc.  937,314   1,130,435 
    Non-controlling interests  1,394   1,281 
    Total stockholders’ equity  938,708   1,131,716 
    Total liabilities, non-controlling interests and stockholders’ equity $1,492,117  $1,530,603 


      
    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (Unaudited)    		 
      
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
    Cash flows from operating activities:            
    Net (loss) income $(33,613) $65,671  $(51,226) $126,560 
    Adjustments to reconcile net (loss) income to net cash provided by operating activities:            
    Depreciation and amortization  15,997   15,080   32,455   29,353 
    Amortization of deferred financing costs  306   73   1,087   107 
    Deferred income taxes  (2,796)  (9,772)  (7,795)  (18,134)
    Stock-based compensation  11,545   10,877   21,663   21,919 
    Loss on change in fair value of forward repurchase contract  34,752   —   34,752   — 
    Provisions for inventory and expected credit losses  2,111   4,239   4,488   9,422 
    Change in fair value of marketable securities  —   (72)  —   3,579 
    Other non-cash reconciling items  6,563   43   6,577   43 
    Changes in operating assets and liabilities:            
    Trade accounts receivable  (13,717)  2,676   41,417   (7,645)
    Inventories  (2,845)  (3,274)  (18,831)  (31,221)
    Prepaid expenses and other assets  (14,093)  (6,253)  (15,808)  (16,453)
    Trade accounts payable  13,470   (15,736)  13,670   2,695 
    Due to and from related parties  695   (3,990)  4,132   6,112 
    Accrued expenses and other current and long-term liabilities  (2,828)  (12,832)  (16,838)  (29,944)
    Net cash provided by operating activities  15,547   46,730   49,743   96,393 
    Cash flows from investing activities:            
    Purchases of property, plant and equipment  (9,972)  (31,191)  (20,949)  (76,101)
    Sales of marketable securities  —   6,204   —   16,175 
    Net cash used in investing activities  (9,972)  (24,987)  (20,949)  (59,926)
    Cash flows from financing activities:            
    Loan made to affiliate  —   (4,000)  —   (4,000)
    Net proceeds from Refinanced 2023 Term Loan Facility  193,483   —   193,483   — 
    Payment of borrowings under 2023 Term Loan Facility  —   —   (50,000)  — 
    Finance lease payments  (240)  —   (385)  — 
    Receipts on related party notes receivable  937   937   1,875   1,875 
    Payments for taxes related to net share settlement of equity awards  (1,126)  (1,669)  (12,297)  (14,091)
    Proceeds from issuance of common stock under employee stock purchase plan  1,987   —   1,987   1,899 
    Repurchases of common stock  (853,805)  —   (853,805)  — 
    Net proceeds from issuance of common stock  665,850   —   665,850   — 
    Payment of debt issuance costs  —   —   —   (1,450)
    Net cash provided by (used in) financing activities  7,086   (4,732)  (53,292)  (15,767)
    Effect of exchange rate changes on cash and cash equivalents and restricted cash  2,200   (901)  1,375   (974)
    Net increase (decrease) in cash and cash equivalents and restricted cash  14,861   16,110   (23,123)  19,726 
    Cash and cash equivalents and restricted cash at beginning of period  184,177   362,321   222,161   358,705 
    Cash and cash equivalents and restricted cash at end of period: $199,038  $378,431  $199,038  $378,431 
                     

    Non-GAAP Financial Measures

    In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP Financial Measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

    The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP Financial Measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related party activities and other non-operational costs.

    Non-GAAP Income Tax Provision

    In calculating non-GAAP Income Tax Provision, we have added back the following to GAAP Income Tax Provision:

    • Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below and elimination of discrete tax adjustments.
      
    Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin 
                    
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Gross Profit $85,662  $74,771  $159,503  $160,433  $317,453 
    GAAP Gross Margin (% of net sales)  45.7%  44.8%  57.9%  45.3%  57.3%
                    
    Non-GAAP adjustments               
    Transaction-related costs  10   (1)  —   9   — 
    Purchased intangible amortization  4,875   4,875   273   9,750   675 
    Restructuring costs  16   1,200   —   1,216   — 
    Stock-based compensation  817   561   946   1,378   3,552 
    Total Non-GAAP Adjustments $5,718  $6,635  $1,219  $12,353  $4,227 
                    
    Non-GAAP Gross Profit $91,380  $81,406  $160,722  $172,786  $321,680 
    Non-GAAP Gross Margin (% of net sales)  48.8%  48.8%  58.3%  48.8%  58.1%


      
    Reconciliation of Non-GAAP Operating Expenses 
                    
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Operating Expenses $81,595  $85,401  $86,588  $166,996  $173,792 
                    
    Research and Development Expenses               
    GAAP Research and Development Expenses  43,510   45,204   43,428   88,714   86,403 
    Non-GAAP adjustments               
    Transaction-related costs  206   1,029   2   1,235   9 
    Restructuring costs  260   169   —   429   — 
    Stock-based compensation  3,523   3,735   3,602   7,258   6,470 
    Other costs(1)  3   —   —   3   — 
    Non-GAAP Research and Development Expenses  39,518   40,271   39,824   79,789   79,924 
                    
    Selling, General and Administrative Expenses               
    GAAP Selling, General and Administrative Expenses  38,085   40,197   43,160   78,282   87,389 
    Non-GAAP adjustments               
    Transaction-related costs  275   814   1,804   1,089   4,876 
    Purchased intangible amortization  535   535   357   1,070   715 
    Restructuring costs  2,046   1,045   —   3,091   — 
    Stock-based compensation  7,205   5,822   6,329   13,027   11,897 
    Other costs(1)  (1,820)  811   100   (1,009)  100 
    Non-GAAP Selling, General and Administrative Expenses  29,844   31,170   34,570   61,014   69,801 
                    
    Total Non-GAAP Adjustments  12,233   13,960   12,194   26,193   24,067 
                    
    Non-GAAP Operating Expenses $69,362  $71,441  $74,394  $140,803  $149,725 
                    
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. 


      
    Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin 
                    
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Operating Income (Loss) $4,067  $(10,630) $72,915  $(6,563) $143,661 
    GAAP Operating Margin (% of net sales)  2.2%  (6.4)%  26.5%  (1.9)%  25.9%
                    
    Transaction-related costs  491   1,842   1,806   2,333   4,885 
    Purchased intangible amortization  5,410   5,410   630   10,820   1,390 
    Restructuring costs  2,322   2,414   —   4,736   — 
    Stock-based compensation  11,545   10,118   10,877   21,663   21,919 
    Other costs(1)  (1,817)  811   100   (1,006)  100 
    Total Non-GAAP Adjustments $17,951  $20,595  $13,413  $38,546  $28,294 
                    
    Non-GAAP Operating Income $22,018  $9,965  $86,328  $31,983  $171,955 
    Non-GAAP Operating Margin (% of net sales)  11.7%  6.0%  31.3%  9.0%  31.0%
                    
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. 


      
    Reconciliation of EBITDA and Adjusted EBITDA 
                    
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Net (Loss) Income $(33,613) $(17,613) $65,671  $(51,226) $126,560 
    GAAP Net (Loss) Income Margin (% of net sales)  (17.9)%  (10.6)%  23.8%  (14.5)%  22.9%
                    
    Interest expense  10,353   5,377   758   15,730   1,527 
    Interest income  (420)  (494)  (850)  (914)  (1,693)
    Income tax (benefit) provision  (9,470)  1,040   7,400   (8,430)  14,615 
    Depreciation & amortization  15,997   16,458   15,145   32,455   29,418 
    EBITDA $(17,153) $4,768  $88,124  $(12,385) $170,427 
                    
    Transaction-related costs  3,295   1,842   1,806   5,137   4,885 
    Restructuring costs  2,067   2,414   —   4,481   — 
    Stock-based compensation  11,545   10,118   10,877   21,663   21,919 
    Loss on change in fair value of forward repurchase contract  34,752   —   —   34,752   — 
    Other costs(1)  (2,195)  2,807   1,301   612   5,890 
    Adjusted EBITDA $32,311  $21,949  $102,108  $54,260  $203,121 
    Adjusted EBITDA Margin (% of net sales)  17.2%  13.1%  37.1%  15.3%  36.7%
                    
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments. 


      
    Reconciliation of Non-GAAP Profit before Tax 
                    
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP (Loss) Income before Income Taxes $(43,083) $(16,573) $73,071  $(59,656) $141,175 
                    
    Transaction-related costs  3,295   1,842   1,806   5,137   4,885 
    Transaction-related interest  141   709   —   850   — 
    Purchased intangible amortization  5,410   5,410   630   10,820   1,390 
    Restructuring costs  2,067   2,414   —   4,481   — 
    Stock-based compensation  11,545   10,118   10,877   21,663   21,919 
    Loss on change in fair value of forward repurchase contract  34,752   —   —   34,752   — 
    Other costs(1)  1,428   2,807   1,301   4,235   5,890 
    Total Non-GAAP Adjustments $58,638  $23,300  $14,614  $81,938  $34,084 
                    
    Non-GAAP Profit before Tax $15,555  $6,727  $87,685  $22,282  $175,259 
                    
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments. 


      
    Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate 
                    
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Income Tax (Benefit) Provision $(9,470) $1,040  $7,400  $(8,430) $14,615 
    GAAP effective tax rate  22.0%  (6.3)%  10.1%  14.1%  10.4%
                    
    Tax effect of adjustments to GAAP results  10,071   (395)  2,554   9,676   6,380 
                    
    Non-GAAP Income Tax Provision $601  $645  $9,954  $1,246  $20,995 
    Non-GAAP effective tax rate  3.9%  9.6%  11.4%  5.6%  12.0%


      
    Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share 
                    
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1) $(33,675) $(17,675) $65,617  $(51,350) $126,467 
    GAAP Basic weighted average common shares  189,182,850   193,465,708   192,431,094   191,324,281   192,214,210 
    GAAP Diluted weighted average common shares  189,182,850   193,465,708   195,100,855   191,324,281   195,055,495 
    GAAP Basic (Loss) Earnings per Share $(0.18) $(0.09) $0.34  $(0.27) $0.66 
    GAAP Diluted (Loss) Earnings per Share $(0.18) $(0.09) $0.34  $(0.27) $0.65 
                    
    Transaction-related costs  3,295   1,842   1,806   5,137   4,885 
    Transaction-related interest  141   709   —   850   — 
    Purchased intangible amortization  5,410   5,410   630   10,820   1,390 
    Restructuring costs  2,067   2,414   —   4,481   — 
    Stock-based compensation  11,545   10,118   10,877   21,663   21,919 
    Loss on change in fair value of forward repurchase contract  34,752   —   —   34,752   — 
    Other costs(2)  1,428   2,807   1,301   4,235   5,890 
    Total Non-GAAP Adjustments  58,638   23,300   14,614   81,938   34,084 
    Tax effect of adjustments to GAAP results(3)  (10,071)  395   (2,554)  (9,676)  (6,380)
    Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. $14,892  $6,020  $77,677  $20,912  $154,171 
    Basic weighted average common shares  189,182,850   193,465,708   192,431,094   191,324,281   192,214,210 
    Diluted weighted average common shares  189,710,595   194,705,716   195,100,855   192,154,185   195,055,495 
    Non-GAAP Basic Earnings per Share $0.08  $0.03  $0.40  $0.11  $0.80 
    Non-GAAP Diluted Earnings per Share $0.08  $0.03  $0.40  $0.11  $0.79 
                    
    (1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests. 
    (2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments. 
    (3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction and reverses all discrete items to calculate an annual Non-GAAP effective tax rate (“NG ETR”). This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results. 


         
    Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales    
                    
      Three-Month Period Ended  Six-Month Period Ended 
      September 27,
    2024    		  June 28,
    2024    		  September 29,
    2023    		  September 27,
    2024    		  September 29,
    2023    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Operating Cash Flow $15,547  $34,196  $46,730  $49,743  $96,393 
    GAAP Operating Cash Flow (% of net sales)  8.3%  20.5%  17.0%  14.0%  17.4%
    Non-GAAP adjustments               
    Purchases of property, plant and equipment  (9,972)  (10,977)  (31,191)  (20,949)  (76,101)
                    
    Non-GAAP Free Cash Flow $5,575  $23,219  $15,539  $28,794  $20,292 
    Non-GAAP Free Cash Flow (% of net sales)  3.0%  13.9%  5.6%  8.1%  3.7%
                         

    Investor Contact:
    Jalene Hoover
    VP of Investor Relations & Corporate Communications
    +1 (512) 751-6526
    jhoover@allegromicro.com


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