Q1 2025 Allegro Microsystems Inc Earnings Call Transcript
Key Points
- Allegro Microsystems Inc (ALGM) delivered Q1 sales of $167 million, above the midpoint of guidance.
- Non-GAAP EPS was $0.03, at the high end of guidance.
- The company made significant progress in reducing inventory in direct and distribution channels.
- Allegro Microsystems Inc (ALGM) launched new products, including a high-voltage power IC solution and new sensor solutions, enhancing their product portfolio.
- The company increased its leadership position in magnetic sensing, driven by continuous innovation.
- Total Q1 sales declined by 31% sequentially and by 40% compared to Q1 of fiscal '24.
- Sales to automotive customers declined by 28% sequentially and 29% year-over-year.
- Industrial and other sales declined 39% sequentially and 62% year-over-year.
- Gross margin was 48.8%, a decline from previous quarters.
- Operating margin was 6% of sales, significantly lower than the 23.8% in Q4 and 31% a year ago.
Good morning and welcome to Allegro Microsystems First Quarter Fiscal 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jalene Hoover, Vice President of Investor Relations, and Corporate Communications for Allegro Microsystems. Please go ahead.
Thank you, Steve. Good morning, and thank you for joining us today to discuss Allegro's First Fiscal Quarter 2025 results. I'm joined today by Allegro's President and Chief Executive Officer, Vineet Nargolwala and Allegro's Chief Financial Officer, Derek D'Antilio. Derek will provide highlights of our business review our quarterly financial performance and share our second quarter outlook.
We will follow our prepared remarks with a Q&A session. Our earnings release and prepared remarks include certain non-GAAP financial measures. The non-GAAP financial measures that are discussed today are not intended to replace or be a substitute for our GAAP
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