Allegro MicroSystems Announces Results for the Third Fiscal Quarter Ended December 25, 2020

MANCHESTER, N.H., Feb. 02, 2021 (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 third fiscal quarter ended December 25, 2020. Total net sales of $164.4 million for the three-month period exceeded expectations, increasing 20% from the prior quarter and, for our core end markets only, up 21% from the same period in fiscal 2020. GAAP loss per share was $0.04. Non-GAAP diluted earnings per share, which excludes one-time and certain non-cash items, was $0.13, also exceeding expectations.

“We benefited in the third fiscal quarter from the strong recovery in automotive, continued strength in industrial and solid operational execution. With this meaningful step up in revenue, we are well ahead of forecasts while delivering margin improvement,” said Ravi Vig, President and CEO of Allegro MicroSystems. “Good visibility and unprecedented bookings and backlog give us confidence in delivering another record quarter in fiscal Q4. With progress on our manufacturing efficiency initiatives and strong momentum in our design funnel, we believe we are well positioned to deliver on our long-term growth and profitability objectives.”

Business Summary

Automotive total net sales were up 27% sequentially during the third fiscal quarter driven by global auto production recovery and restocking across the automotive supply chain. ADAS and xEV, strategic investment areas for the Company, represented approximately one third of the automotive business and continue to exceed the long-term growth rates of foundational automotive business in internal combustion engine (ICE) and Safety, Comfort and Convenience. ICE applications represented a significant portion of the automotive upside in fiscal third quarter, growing double digits compared to both the prior period and the same period in fiscal 2020.

Industrial total net sales in the third quarter were up 11% year-over-year compared to the prior year fiscal period and were up 9% from the prior quarter. Within industrial, broad-based revenue, which includes a variety of end applications and customers, increased by nearly 50% from the prior period. The Company’s “Other” business also increased compared to the prior period by 5%.

Business Outlook

For the fourth fiscal quarter ending March 26, 2021, the Company expects total net sales to increase and be in the range of $165 million to $169 million. Non-GAAP gross margin is expected to be in the range of 50% to 51%, and non-GAAP earnings per fully-diluted share for the same period is expected to be in the range of $0.13 to $0.15.

Allegro has not provided a reconciliation of its fourth fiscal quarter outlook for non-GAAP gross margin and non-GAAP earnings per fully-diluted 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 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 Tuesday, February 2, at 5:00 p.m. Eastern time. Ravi Vig, Chief Executive Officer and Paul Walsh, Chief Financial Officer, will discuss Allegro’s 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 30 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 green energy applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the expected benefits resulting from our acquisition of Voxtel and our expected financial performance for our third fiscal quarter ending December 25, 2020. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “target,” “mission,” “may,” “will,” “would,” “should,” “could,” “target,” “potential,” “project,” “predict,” “contemplate,” “potential,” or the negative thereof and similar words and expressions.

Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such 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 important factors, including, but not limited to: downturns or volatility in general economic conditions, including as a result of the COVID-19 pandemic, particularly in the automotive market; our ability to compete effectively with intense competition, expand our market share and increase our profitability; our ability to compensate for decreases in average selling prices of our products; the cyclical nature of the analog semiconductor industry; 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 fully realize the benefits of past and potential future initiatives designed to improve our competitiveness, growth and profitability; our ability to accurately predict our quarterly net sales and operating results; our ability to adjust our supply chain volume to account for changing market conditions and customer demand; our dependence on manufacturing operations in the Philippines; changes in government trade policies, including the imposition of tariffs and export restrictions; and our ability to protect our proprietary technology and inventions through patents or trade secrets; and other important factors discussed under the caption “Risk Factors” in our final prospectus on Form 424(b) filed with the U.S. Securities and Exchange Commission (“SEC”) on October 30, 2020, as any such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors & Media page of our website at investors.allegromicro.com.

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 contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

ALLEGRO MICROSYSTEMS, INC.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(Unaudited)

  Three-Month Period Ended  Nine-Month Period Ended
  December 25,
2020
  December 27,
2019
  December 25,
2020
  December 27,
2019
Net sales $ 138,010     $ 143,267     $ 343,529     $ 426,158  
Net sales to related party 26,439     16,535     72,570     49,327  
Total net sales 164,449     159,802     416,099     475,485  
Cost of goods sold 90,024     98,277     224,203     285,967  
Gross profit 74,425     61,525     191,896     189,518  
Operating expenses:              
Research and development 30,999     25,485     80,509     77,565  
Selling, general and administrative 67,650     24,909     118,677     78,030  
Total operating expenses 98,649     50,394     199,186     155,595  
Operating (loss) income (24,224 )   11,131     (7,290 )   33,923  
Other (expense) income:              
Loss on debt extinguishment (9,055 )       (9,055 )    
Interest (expense) income, net (2,598 )   10     (1,935 )   (60 )
Foreign currency transaction (loss) gain (145 )   (560 )   (1,331 )   2,800  
Income in earnings of equity investment 949         1,407      
Other, net (510 )   (81 )   (297 )   (1,177 )
(Loss) income before income tax (benefit) provision (35,583 )   10,500     (18,501 )   35,486  
Income tax (benefit) provision (30,523 )   1,542     (27,913 )   11,710  
Net (loss) income (5,060 )   8,958     9,412     23,776  
Net income attributable to non-controlling interests 35     32     103     101  
Net (loss) income attributable to Allegro MicroSystems, Inc. $ (5,095 )   $ 8,926     $ 9,309     $ 23,675  
Net (loss) income attributable to Allegro MicroSystems, Inc. per share:              
Basic $ (0.04 )   $ 0.89     $ 0.19     $ 2.37  
Diluted $ (0.04 )   $ 0.89     $ 0.05     $ 2.37  
Weighted average shares outstanding:              
Basic 124,363,078     10,000,000     48,121,026     10,000,000  
Diluted 124,363,078     10,000,000     171,638,787     10,000,000  
                       

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14  Next Page »



Review Article Be the first to review this article
Aldec

 Advanced Asembly

Featured Video
Editorial
Roberto FrazzoliEDACafe Editorial
by Roberto Frazzoli
IBM’s 2nm chip; EDA updates; AI updates; acquisitions
More Editorial  
Latest Blog Posts
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
Next Week’s Main Event: The ESD Alliance CEO Outlook
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Automating the UVM Register Abstraction Layer (RAL)
Jobs
Circuit Design & Layout Simulation Engineer - Co-Op (Spring 2021) for Global Foundaries at Santa Clara, California
SoC Physical Design Engineer for Qualcomm at Austin, Texas
Electronics Engineer for Lockheed Martin at Sunnyvale, California
Staff SerDes Applications Design Engineer for Xilinx at San Jose, California
ASIC Engineer for Juniper Networks at Sunnyvale, California
Senior Staff Field Application Engineer for Global Foundaries at Santa Clara, California
Upcoming Events
DVCon China 2021 at Shanghai China - May 26, 2021
CadenceLIVE Americas 2021 at United States - Jun 8 - 9, 2021
DesignCon 2021 at San Jose McEnery Convention Center San Jose, CA San Jose CA - Aug 16 - 18, 2021
Verific: SystemVerilog & VHDL Parsers



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise