Allegro Microsystems Inc (ALGM, Financial), a global leader in power and sensing semiconductor solutions, released its Q2 2024 financial results on November 2, 2023. The company reported a 16% YoY increase in net sales, reaching $276 million. This growth was primarily driven by a 31% YoY increase in Automotive sales, led by E-Mobility. The company's GAAP and Non-GAAP EPS also increased by 31% and 29% respectively, YoY.
Financial Highlights
Allegro's net sales for the quarter were $275.5 million, with Automotive sales contributing $205.9 million, Industrial sales contributing $51.1 million, and Other sales contributing $18.4 million. The company's GAAP gross margin was 57.9%, and its non-GAAP gross margin was 58.3%. The GAAP diluted EPS was $0.34, while the non-GAAP diluted EPS was $0.40.
President and CEO of Allegro Microsystems, Vineet Nargolwala, commented on the results, stating,
We delivered second quarter net sales of $276 million dollars, up 16% year-over-year, driven by continued strength in Automotive, which grew 31% year-over-year. We also achieved record non-GAAP Diluted Earnings per Share of $0.40, an increase of 29% year-over-year."
Business Outlook
For Q3 2024, Allegro expects net sales to be in the range of $250 million to $260 million. The company also anticipates a non-GAAP gross margin of approximately 54%, operating expenses to decline by 4% sequentially, and diluted earnings per share to be in the range of $0.27 to $0.31.
Nargolwala further commented on the outlook, stating,
Our backlog remains robust. Our sales forecast reflects normal third quarter seasonality, lingering impacts from the UAW strike, heightened macroeconomic trends and elevated inventory levels in Industrial and Consumer markets. Over the mid and the long term, continued strong momentum in design wins (especially in our strategic focus areas of e-Mobility, Clean Energy and Automation) and deepening and expanding partnerships with leading OEMs reinforce our conviction in the target model of low double-digit sales growth and above 32% operating margin."
Financial Statements
The company's consolidated statement of operations showed a net income of $65.6 million for the three-month period ended September 29, 2023, and $126.4 million for the six-month period ended on the same date. The consolidated balance sheets revealed total assets of $1.28 billion as of September 29, 2023. The consolidated statements of cash flows indicated a net increase in cash and cash equivalents and restricted cash of $16.1 million for the three months ended September 29, 2023, and $19.7 million for the six months ended on the same date.
Allegro Microsystems Inc (ALGM, Financial) continues to show strong performance in the semiconductor industry, with significant growth in its automotive and e-mobility sectors. The company's financial results and future outlook indicate a positive trajectory for the coming quarters.
Explore the complete 8-K earnings release (here) from Allegro Microsystems Inc for further details.
