Allegro Microsystems Inc (NAS:ALGM)
$ 22.91 -0.13 (-0.56%) Market Cap: 4.22 Bil Enterprise Value: 4.48 Bil PE Ratio: 0 PB Ratio: 4.49 GF Score: 76/100
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Q2 2025 Allegro Microsystems Inc Earnings Call Transcript

Oct 31, 2024 / 12:30 PM GMT
Release Date Price: $20.84 (-6.21%)

Key Points

Positve
  • Allegro Microsystems Inc (ALGM) secured significant design wins, including a large project with a leading Japanese OEM for a PHEV inverter and a major project for clean energy smart metering applications.
  • The company reported a strong increase in second-quarter sales in China, with shipments returning to normal ordering patterns.
  • Allegro Microsystems Inc (ALGM) is proactively localizing production in China, with the first parts from the newly formed China supply chain expected to launch before the end of the year.
  • The company is seeing increased activity in its industrial and other end markets, with signs of demand recovery expected in calendar year 2025.
  • Allegro Microsystems Inc (ALGM) continues to invest in growth, focusing on new product introductions and extending market leadership.
Negative
  • Total Q2 sales declined by 32% compared to Q2 of fiscal 2024, with automotive sales down 28% year over year.
  • The company expects continued near-term choppiness in order patterns from North America and European customers due to inventory digestion challenges.
  • Operating margin decreased significantly from 31% a year ago to 11.7% in the current quarter.
  • Allegro Microsystems Inc (ALGM) reported a $35 million non-cash GAAP loss in Q2 due to a forward repurchase fair value adjustment.
  • The company anticipates a decline in third-quarter sales, projecting a range of $170 to $200 million, reflecting ongoing customer inventory rebalancing and December quarter seasonality.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ALGM.OQ - Allegro Microsystems Inc
Q2 2025 Allegro Microsystems Inc Earnings Call
Oct 31, 2024 / 12:30PM GMT

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Presentation
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Unidentified Participant [1]
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(audio in progress) But well-suited for automotive, powertrain center, electric vehicle charging infrastructure and solar applications.

And this focus on innovation is paying off as a solutions continue to build momentum across our strategic focus areas with important design wins.

In Q2, we had a large design win with it leading Japanese OEM for a PHEV inverter using our current sensor solutions are extreme since portfolio on a major project for clean energy smart metering application.

In North America, our high voltage isolated gate driver secured a win with the Chinese equipment manufacturer to death.

Lithium batteries used an excipient solar applications.

And
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