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Allegro MicroSystems, Inc. (ALGM)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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22.88+0.02 (+0.09%)
At close: 4:00PM EDT
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Previous Close22.86
Open23.30
Bid0.00 x 2200
Ask0.00 x 1800
Day's Range22.05 - 23.83
52 Week Range16.78 - 34.66
Volume844,150
Avg. Volume733,990
Market Cap4.338B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateMay 05, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est35.43
  • Allegro MicroSystems to Present at Upcoming Investor Conferences
    GlobeNewswire

    Allegro MicroSystems to Present at Upcoming Investor Conferences

    MANCHESTER, N.H., May 13, 2021 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro”) (NASDAQ: ALGM), a global leader in sensing and power semiconductor technology, announced today President & Chief Executive Officer, Ravi Vig, and Chief Financial Officer, Paul Walsh, will be presenting virtually at the following upcoming investor conferences. 3rd Annual Mizuho Auto Technology Seminar 2021Date: May 19, 2021Presentation Time: 3:30 PM ET The Cowen 49th Annual Technology, Media & Telecom ConferenceDate: June 3, 2021Presentation Time: 4:30 PM ET The webcast information for these conferences can be accessed through the Investor Relations section of Allegro’s website (https://investors.allegromicro.com). Archived replays of each presentation will be available on the website after each event. 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. Contact: Katherine BlyeInvestor RelationsPhone: +1 603 626-2306kblye@allegromicro.com

  • Allegro MicroSystems Reports Fourth Quarter Record Revenue and Accelerating Profits
    GlobeNewswire

    Allegro MicroSystems Reports Fourth Quarter Record Revenue and Accelerating Profits

    Market Share Gain and End Market Recovery Driving Confidence in Long-term OutlookMANCHESTER, N.H., May 05, 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 fourth fiscal quarter and fiscal year ended March 26, 2021. Record fourth quarter total net sales of $175.1 million for the three-month period exceeded expectations in the fourth quarter and resulted in fiscal year total net sales of $591.2 million. Profitability also exceeded expectations, with improvements in both gross margin and operating income resulting in significant earnings per share growth on both a GAAP and non-GAAP basis sequentially. Quarter Highlights: Total net sales of $175.1 million was up 6.5% sequentially and on a non-GAAP basis, core end markets grew 22.3% from the same period in fiscal 2020.Automotive and Industrial net sales for the quarter grew 12.3% and 30.7%, respectively, from the same period in fiscal 2020.Gross margin on a GAAP basis was 49.7% and 50.9% on a Non-GAAP basis.Operating margin on a GAAP basis was 11.1% and increased to 19.7% on a non-GAAP basis.GAAP earnings per diluted share was $0.05, up $0.09 sequentially. Non-GAAP earnings per diluted share was $0.15, up $0.02, growing 15.4% sequentially. “Our strong performance in the fourth quarter was driven by accelerating revenue in our target markets and increased profitability resulting from continued progress toward our manufacturing transformation,” said Ravi Vig, President and CEO of Allegro MicroSystems. “I am pleased with our design win momentum, which has yielded market share gains and is a testament to our industry-leading technologies and alignment with growing markets like vehicle electrification and data centers. We believe our strengthening fundamentals and resilient manufacturing model give us a solid foundation for long-term out-performance of our end markets.” Business Summary Record automotive net sales were up 4% sequentially during the fourth fiscal quarter driven by strong global automotive demand and a favorable vehicle production mix, despite supply chain constraints. Shifts to higher value features on automotive platforms are driving increased demand for Allegro products in ADAS and comfort and convenience systems. Automotive net sales grew 1% for the full year, outpacing an 8% reduction in global car production. Industrial net sales in the fourth quarter exceeded expectations and were up 23% sequentially and up 21% for the full year, reaching new record highs. Growth was driven by data center, building and factory automation, and green energy applications. All three categories were up double-digits sequentially. Business Outlook For the first fiscal quarter ending June 25, 2021, the Company expects total net sales to be in the range of $176 million to $179 million. Non-GAAP gross margin is expected to be about 51.0% and non-GAAP earnings per fully-diluted share for the same period is expected to be in the range of $0.15 to $0.17. Allegro has not provided a reconciliation of its first 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 Wednesday, May 5, 2021 at 8:30 a.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 first fiscal quarter ending June 25, 2021. 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 February 8, 2021, 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) Three-Month Period Ended Fiscal Year Ended (Unaudited) (Unaudited) (Unaudited) March 26, 2021 March 27, 2020 March 26, 2021 March 27, 2020Net sales$143,017 $121,997 $486,546 $465,532 Net sales to related party32,091 52,607 104,661 184,557 Total net sales175,108 174,604 591,207 650,089 Cost of goods sold88,102 102,846 312,305 388,813 Gross profit87,006 71,758 278,902 261,276 Operating expenses: Research and development28,140 24,487 108,649 102,052 Selling, general and administrative34,799 28,366 153,476 106,396 Impairment of long-lived assets7,119 — 7,119 — Change in fair value of contingent consideration(2,500) — (2,500) — Total operating expenses67,558 52,853 266,744 208,448 Operating (loss) income19,448 18,905 12,158 52,828 Other (expense) income: Loss on debt extinguishment— — (9,055) — Interest expense, net(668) (50) (2,603) (110)Foreign currency transaction (loss) gain(1,558) (1,409) (2,889) 1,391 Income in earnings of equity investment6 — 1,413 — Other, net(178) 346 (475) (831)Income (loss) before income taxes17,050 17,792 (1,451) 53,278 Income tax provision (benefit)8,361 4,463 (19,552) 16,173 Net income8,689 13,329 18,101 37,105 Net income attributable to non-controlling interests45 33 148 134 Net income attributable to Allegro MicroSystems, Inc.$8,644 $13,296 $17,953 $36,971 Net income attributable to Allegro MicroSystems, Inc. per share: Basic$0.05 $1.33 $0.22 $3.70 Diluted$0.05 $1.33 $0.10 $3.70 Weighted average shares outstanding: Basic189,429,893 10,000,000 83,448,055 10,000,000 Diluted190,860,556 10,000,000 176,416,645 10,000,000 Supplemental Schedule of Total Net Sales The following table summarizes net sales by core end market and other applications. Other applications include sales of wafer foundry products and from the distribution of Sanken products unrelated to and no longer part of the Company’s business in fiscal year 2021. Three-Month Period Ended Change Fiscal Year Ended Change March 26, 2021 March 27, 2020 Amount % March 26, 2021 March 27, 2020 Amount % (Dollars in thousands)Core end markets: Automotive$118,539 $105,596 $12,943 12.3% $398,298 $395,277 $3,021 0.8%Industrial 29,162 22,304 6,858 30.7% 94,872 78,399 16,473 21.0%Other 27,407 15,223 12,184 80.0% 98,037 68,622 29,415 42.9%Total core end markets 175,108 143,123 31,985 22.3% 591,207 542,298 48,909 9.0%Other applications: Wafer foundry products — 22,748 (22,748) (100.0)% — 72,370 (72,370) (100.0)%Distribution of Sanken products — 8,733 (8,733) (100.0)% — 35,421 (35,421) (100.0)%Total net sales$175,108 $174,604 $504 0.3% $591,207 $650,089 $(58,882) (9.1)% Supplemental Schedule of Stock-Based Compensation The Company recorded stock-based compensation expense in the following expense categories of its unaudited consolidated statements of income: Three-Month Period Ended Fiscal Year Ended(In thousands)March 26, 2021 March 27, 2020 March 26, 2021 March 27, 2020Cost of sales$314 $46 $5,158 $183 Research and development536 22 3,573 87 Selling, general and administrative2,119 316 41,139 1,165 Total stock-based compensation$2,969 $384 $49,870 $1,435 Supplemental Schedule of Acquisition Related Intangible Amortization Costs The Company recorded intangible amortization expense related to its acquisition of Voxtel in the following expense categories of its unaudited consolidated statements of income: Three-Month Period Ended Fiscal Year Ended(In thousands)March 26, 2021 March 27, 2020 March 26, 2021 March 27, 2020Cost of sales$273 $— 651 — Selling, general and administrative37 — 117 — Total intangible amortization$310 $— $768 $— ALLEGRO MICROSYSTEMS, INC.CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share amounts) (Unaudited) March 26, 2021 March 27, 2020Assets Current assets: Cash and cash equivalents$197,214 $214,491 Restricted cash6,661 5,385 Trade accounts receivable, net of allowances of doubtful accounts of $138 and $288 at March 26, 2021 and March 27, 2020, respectively69,500 59,457 Trade and other accounts receivable due from related party23,832 30,851 Accounts receivable - other1,516 1,796 Inventories87,498 127,227 Prepaid expenses and other current assets18,374 9,014 Assets held for sale25,969 — Total current assets430,564 448,221 Property, plant and equipment, net192,393 332,330 Deferred income tax assets26,972 7,217 Goodwill20,106 1,285 Intangible assets, net36,366 19,958 Equity investment in related party26,664 — Other assets, net14,613 8,810 Total assets$747,678 $817,821 Liabilities, Non-Controlling Interest and Stockholders' Equity Current liabilities: Trade accounts payable$35,389 $20,762 Amounts due to related party2,353 4,494 Accrued expenses and other current liabilities78,932 56,855 Current portion of related party debt— 25,000 Bank lines-of-credit— 43,000 Total current liabilities116,674 150,111 Obligations due under Senior Secured Credit Facilities, less current portion25,000 — Related party notes payable, less current portion— 17,700 Other long-term liabilities19,133 15,878 Total liabilities160,807 183,689 Commitments and contingencies Stockholders' Equity: Preferred Stock, $0.01 par value; 20,000,000 shares authorized, no shares issued or outstanding at March 26, 2021 and March 27, 2020— — Common stock, $0.01 par value; 1,000,000,000 shares authorized, 189,588,161 shares issued and outstanding at March 26, 2021; no shares authorized, issued or outstanding at March 27, 20201,896 — Class A, $0.01 par value; No shares authorized, issued or outstanding at March 26, 2021; 12,500,000 shares authorized; 10,000,000 shares issued and outstanding at March 27, 2020— 100 Class L, $0.01 par value; No shares authorized, issued or outstanding at March 26, 2021; 1,000,000 shares authorized; 622,470 shares issued and outstanding at March 27, 2020— 6 Additional paid-in capital592,170 458,697 Retained earnings3,551 194,355 Accumulated other comprehensive loss(11,865) (19,976)Equity attributable to Allegro MicroSystems, Inc.585,752 633,182 Non-controlling interests1,119 950 Total stockholders' equity586,871 634,132 Total liabilities, non-controlling interest and stockholders' equity$747,678 $817,821 ALLEGRO MICROSYSTEMS, INC.Consolidated Statements of Cash Flows(in thousands) Fiscal Year Ended (Unaudited) March 26, 2021 March 27, 2020CASH FLOWS FROM OPERATING ACTIVITIES: Net income$18,101 $37,105 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization48,307 64,048 Amortization of debt issuance costs226 — Deferred income taxes(18,930) (4,909)Stock-based compensation49,870 1,435 Loss on disposal of assets269 698 Loss on debt extinguishment9,055 — Gain on contingent consideration change in fair value(2,500) — Impairment on assets held for sale7,119 — Provisions for inventory and bad debt5,019 3,891 Changes in operating assets and liabilities: Trade accounts receivable(9,303) 16,441 Accounts receivable - other(28) 346 Inventories7,641 346 Prepaid expenses and other assets(29,048) 2,629 Trade accounts payable15,099 (3,122)Due from/to related parties4,878 (23,946)Accrued expenses and other current and long-term liabilities14,795 (13,543)Net cash provided by operating activities120,570 81,419 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment(40,673) (45,615)Acquisition of business, net of cash acquired(11,555) — Proceeds from sales of property, plant and equipment318 3,936 Disposal of cash balances of subsidiary(16,335) — Net cash used in investing activities(68,245) (41,679)CASH FLOWS FROM FINANCING ACTIVITIES: Related party note receivable51,377 30,000 Proceeds from initial public offering, net of underwriting discounts and other offering costs321,425 — Payments for taxes related to net share settlement of equity awards(27,707) — Dividends paid(400,000) — Borrowings of senior secured debt, net of deferred financing costs315,719 43,000 Repayment of senior secured debt(300,000) — Repayment of unsecured credit facilities(33,000) — Capital contribution— 9,500 Net cash (used) provided by financing activities(72,186) 82,500 Effect of exchange rate changes on Cash and cash equivalents and Restricted cash3,860 (5,621)Net (decrease) increase in Cash and cash equivalents and Restricted cash(16,001) 116,619 Cash and cash equivalents and Restricted cash at beginning of period219,876 103,257 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD$203,875 $219,876 RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: Cash and cash equivalents at beginning of period$214,491 $99,743 Restricted cash at beginning of period5,385 3,514 Cash and cash equivalents and Restricted cash at beginning of period$219,876 $103,257 Cash and cash equivalents at end of period197,214 214,491 Restricted cash at end of period6,661 5,385 Cash and cash equivalents and Restricted cash at end of period$203,875 $219,876 Consolidated Statements of Cash Flows (cont.)(in thousands) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid for interest$2,746 $2,448 Cash paid for income taxes$8,908 $15,873 Non-cash transactions: Changes in Trade accounts payable related to Property, plant and equipment, net$(3,226) $(1,542)Assets held for sale transferred from property, plant and equipment, net$25,969 $— Loans to cover purchase of common stock under employee stock plan$171 $232 Non-GAAP Financial Measures In addition to the measures presented in our consolidated financial statements, we regularly review other metrics, 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 metrics we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, non-GAAP Profit before Tax, non-GAAP Provision for Income Tax, non-GAAP Net Income, non-GAAP Net Income per Share, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin (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 Provision for Income Tax, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Provision for Income Taxes across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. By presenting these Non-GAAP Financial Measures, we provide a basis for comparison of our business operations between periods by excluding items that we do not believe are indicative of our core operating performance, and we believe that investors’ understanding of our performance is enhanced by our presenting these Non-GAAP Financial Measures, as they provide a reasonable basis for comparing our ongoing results of operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management and the investment community with valuable insight into matters such as: our ongoing core operations, our ability to generate cash to service our debt and fund our operations; and the underlying business trends that are affecting our performance. 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. In particular, management finds it useful to exclude non-cash charges in order to better correlate our operating activities with our ability to generate cash from operations and to exclude certain cash charges as a means of more accurately predicting our liquidity requirements. We believe that these Non-GAAP Financial Measures, when used in conjunction with our GAAP financial information, also allow investors to better evaluate our financial performance in comparison to other periods and to other companies in our industry. These Non-GAAP Financial Measures have significant limitations as analytical tools. Some of these limitations are that: such measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;such measures exclude certain costs which are important in analyzing our GAAP results;such measures do not reflect changes in, or cash requirements for, our working capital needs;such measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt;such measures do not reflect our tax expense or the cash requirements to pay our taxes; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future;such measures do not reflect any cash requirements for such replacements; andother companies in our industry may calculate such measures differently than we do, thereby further limiting their usefulness as comparative measures. 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 added back 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. Our prior disclosure referred to non-GAAP Gross Profit and non-GAAP Gross Margin as Adjusted Gross Profit and Adjusted Gross Margin, respectively. No changes have been made to how we calculate these measures. Non-GAAP Gross Profit and Non-GAAP Gross Margin We calculate non-GAAP Gross Profit and non-GAAP Gross Margin excluding the items below from cost of goods sold in applicable periods and we calculate non-GAAP Gross Margin as non-GAAP Gross Profit divided by total net sales. PSL and Sanken Distribution Agreement - Represents the elimination of inventory cost amortization and foundry service payment related to one-time costs incurred in connection with the disposition of Polar Semiconductor, LLC (“PSL”) during the fiscal year ended March 26, 2021 (the “PSL Divestiture”).Stock-based compensation - Represents non-cash expenses arising from the grant of stock-based awards.AMTC Facility consolidation one-time costs - Represents one-time costs incurred in connection with closing of our manufacturing facility in Thailand (the “AMTC Facility”) and transitioning of test and assembly functions to our manufacturing facility in the Philippines (the “AMPI Facility”) announced in fiscal year 2020 consisting of: moving equipment between facilities, contract terminations and other non-recurring charges. The closure and transition of the AMTC Facility was substantially completed as of the end of March 2021. These costs are in addition to, and not duplicative of, the adjustments noted in note (*) below.Amortization of acquisition-related intangible assets - Represents non-cash expenses associated with the amortization of intangible assets in connection with the acquisition of Voxtel, Inc., which closed in August 2020.COVID-19 related expenses - Represents expenses attributable to the COVID-19 pandemic primarily related to increased purchases of masks, gloves and other protective materials, and overtime premium compensation paid for maintaining 24-hour service at the AMPI Facility. (*) Non-GAAP Gross Profit and the corresponding calculation of non-GAAP Gross Margin in this release do not include adjustments consisting of: Additional AMTC related costs - Represents costs relating to the closing of the AMTC Facility and the transitioning of test and assembly functions to the AMPI Facility in the Philippines announced in fiscal year 2020 consisting of: the net savings expected to result from the movement of work to the AMPI Facility, which facility had duplicative capacity based on the buildouts of the AMPI Facility in fiscal years 2019 and 2018. The elimination of these costs did not reduce our production capacity and therefore did not have direct effects on our ability to generate revenue. The closure and transition of the AMTC Facility was substantially completed as of the end of March 2021.Out of period adjustment for depreciation expense of giant magnetoresistance assets (“GMR assets”) - Represents a one-time depreciation expense related to the correction of an immaterial error, related to 2017, for certain manufacturing assets that have reached the end of their useful lives. Non-GAAP Operating Expenses, non-GAAP Operating Income and non-GAAP Operating Margin We calculate non-GAAP Operating Expenses and non-GAAP Operating Income excluding the same items excluded above to the extent they are classified as operating expenses, and also excluding the items below in applicable periods. We calculate non-GAAP Operating Margin as non-GAAP Operating Income divided by total net sales. Transaction fees - Represents transaction-related legal and consulting fees incurred primarily in connection with (i) the unsuccessful acquisition of a competitor in fiscal year 2019, (ii) the acquisition of Voxtel, Inc. in fiscal year 2020, and (iii) the PSL Divestiture and the transfer of the Sanken products distribution business to PSL in fiscal year 2020, and (iv) one-time transaction-related legal and consulting fees in fiscal 2021.Severance - Represents severance costs associated with (i) labor savings initiatives to manage overall compensation expense as a result of the declining sales volume during the applicable period, including a voluntary separation incentive payment plan for employees near retirement and a reduction in force and (ii) the closing of the AMTC Facility and the transitioning of test and assembly functions to the AMPI Facility announced and initiated in fiscal year 2020.Impairment of long-lived assets – Represents impairment charge incurred in connection with the planned sale of the AMTC Facility.Change in fair value of contingent consideration – Represents the change in fair value of contingent consideration payable in connection with the acquisition of Voxtel, Inc. (**) Non-GAAP Operating Income in this release does not include adjustments consisting of those set forth in note (*) to the calculation of non-GAAP Gross Profit, and the corresponding calculation of non-GAAP Gross Margin, above or: Labor savings - Represents salary and benefit costs related to employees whose positions were eliminated through voluntary separation programs or other reductions in force (not associated with the closure of the AMTC Facility or any other plant or facility) and a restructuring of overhead positions from high-cost to low-cost jurisdictions net of costs for newly hired employees in connection with such restructuring. EBITDA, Adjusted EBITDA, and Adjusted EBITDA MarginWe calculate EBITDA as net income minus interest income (expense), tax provision (benefit), and depreciation and amortization expenses. We calculate Adjusted EBITDA as EBITDA excluding the same items excluded above and also excluding the items below in applicable periods, We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by total net sales. Non-core loss (gain) on sale of equipment - Represents non-core miscellaneous losses and gains on the sale of equipment.Miscellaneous legal judgment charge – Represents a one-time charge associated with the final payment of the previously accrued amount payable with respect to a VAT dispute related to the construction of the AMPI Facility.Loss on debt extinguishment – Represents one-time costs representing deferred financing costs associated with the $300.0 million of our term loan facility repaid during the year ended March 26, 2021.Foreign currency translation loss (gain) - Represents losses and gains resulting from the remeasurement and settlement of intercompany debt and operational transactions, as well as transactions with external customers or vendors denominated in currencies other than the functional currency of the legal entity in which the transaction is recorded.Income in earnings of equity investment - Represents our equity method investment in PSL.Inventory cost amortization - Represents intercompany inventory transactions incurred from purchases made from PSL in fiscal year 2020. Such costs are one-time incurred expenses impacting our operating results during fiscal year 2021 following the PSL Divestiture. Such costs are not expected to have a continuing impact on our operating results after our second fiscal quarter of fiscal year 2021.Foundry service payment - Represents foundry service payments incurred under our Price Support Agreement with PSL in respect to the guaranteed capacity at PSL to support our production forecast and are one-time costs incurred impacting our operating results during fiscal year 2021 following the PSL Divestiture. Such costs are not expected to have a continuing impact on our operating results after fiscal year 2021. Non-GAAP Profit before Tax and Non-GAAP Net Income We calculate non-GAAP Profit before Tax as Profit before Tax excluding the same items excluded above and also excluding the item below in applicable periods. We calculate non-GAAP Net Income as Net Income excluding the same items excluded above and also excluding the item below in applicable periods. Interest on repaid portion of term loan facility – Represents interest expense associated with the $300.0 million of our term loan facility repaid during the period. Non-GAAP Provision for Income Tax In calculating non-GAAP Provision for Income Tax, we have added-back the following to GAAP Provision for Income Taxes: Tax effect of adjustments to GAAP results - Represents the estimated income tax effect of the adjustments to non-GAAP Profit Before Tax described above and elimination of discrete tax adjustments. Three-Month Period Ended Fiscal Year Ended March 26, 2021 December 25, 2020 March 27, 2020 March 26, 2021 March 27, 2020 (Dollars in thousands)Reconciliation of Gross Profit GAAP Gross Profit $87,006 $74,425 $71,758 $278,902 $261,276 PSL and Sanken distribution agreement 930 1,500 — 8,628 — Stock-based compensation 314 4,694 46 5,158 183 AMTC facility consolidation one-time costs 625 607 — 2,184 — Amortization of acquisition-related intangible assets 273 273 — 651 — COVID-19 related expenses 64 65 — 202 — Total Non-GAAP Adjustments 2,206 7,139 46 16,823 183 Non-GAAP gross profit* 89,212 81,564 71,804 295,725 261,459 Non-GAAP gross margin 50.9% 49.6% 41.1% 50.0% 40.2% *Non-GAAP Gross Profit and the corresponding calculation of non-GAAP Gross Margin do not include adjustments for the following components of our net income: (i) additional AMTC related costs of $—, $1,198, and $2,290 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and (ii) additional AMTC related costs of $6,553 and $9,361 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, and out of period adjustment for depreciation expense of GMR assets of $768 and $— for the fiscal years ended March 26, 2021 and March 27, 2020, respectively. Three-Month Period Ended Fiscal Year Ended March 26, 2021 December 25, 2020 March 27, 2020 March 26, 2021 March 27, 2020 (Dollars in thousands)Reconciliation of Operating Expenses GAAP Operating Expenses $67,558 $98,649 $52,853 $266,744 $208,448 Research and Development Expenses GAAP Research and Development Expenses 28,140 30,999 24,487 108,649 102,052 Stock-based compensation 536 2,984 22 3,573 87 AMTC facility consolidation one-time costs — 1 — 2 — COVID-19 related expenses 8 32 — 100 — Transaction fees — — — 18 — Non-GAAP Research and Development Expenses 27,596 27,982 24,465 104,956 101,965 Selling, General and Administrative Expenses GAAP Selling, General and Administrative Expenses 34,799 67,650 28,366 153,476 106,396 Stock-based compensation 2,119 38,198 316 41,139 1,165 AMTC facility consolidation one-time costs 1,488 1,620 — 5,626 — Amortization of acquisition-related intangible assets 37 71 — 117 — COVID-19 related expenses 250 338 581 4,926 581 Transaction fees 3,727 1,729 2,553 7,426 6,335 Severance — (181) 3,263 156 6,415 Non-GAAP Selling, General and Administrative Expenses 27,178 25,875 21,653 94,086 91,900 Impairment of long-lived assets 7,119 — — 7,119 — Change in fair value of contingent consideration (2,500) — — (2,500) — Total Non-GAAP Adjustments 12,784 44,792 6,735 67,702 14,583 Non-GAAP operating expenses * $54,774 $53,857 $46,118 $199,042 $193,865 *Non-GAAP Operating Expenses do not include adjustments for the following components of our net income: (i) additional AMTC related costs of $—, $19, and $2,621 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and labor savings costs of $—, $109, and $289 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and (ii) additional AMTC related costs of $723 and $11,224 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, and labor savings costs of $218 and $6,173 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively. Three-Month Period Ended Fiscal Year Ended March 26, 2021 December 25, 2020 March 27, 2020 March 26, 2021 March 27, 2020 (Dollars in thousands)Reconciliation of Operating Income GAAP Operating Income (Loss) $19,448 $(24,224) $18,905 $12,158 $52,828 PSL and Sanken distribution agreement 930 1,500 — 8,628 — Stock-based compensation 2,969 45,876 384 49,870 1,435 AMTC facility consolidation one-time costs 2,113 2,228 — 7,812 — Amortization of acquisition-related intangible assets 310 344 — 768 — COVID-19 related expenses 322 435 581 5,228 581 Impairment of long-lived assets 7,119 — — 7,119 — Change in fair value of contingent consideration (2,500) — — (2,500) — Transaction fees 3,727 1,729 2,553 7,444 6,335 Severance — (181) 3,263 156 6,415 Total Non-GAAP Adjustments $14,990 $51,931 $6,781 $84,525 $14,766 Non-GAAP Operating Income * $34,438 $27,707 $25,686 $96,683 $67,594 % of net sales 19.7% 16.8% 14.7% 16.4% 10.4% *Non-GAAP Operating Income and the corresponding calculation of non-GAAP Operating Margin do not include adjustments for the following components of our net income: (i) additional AMTC related costs of $—, $1,217, and $4,911 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and labor savings costs of $—, $109, and $289 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and (ii) additional AMTC related costs of $7,276 and $11,224 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, labor savings costs of $218 and $6,173 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, and out of period adjustment for depreciation expense of GMR assets of $768 and $— for the fiscal years ended March 26, 2021 and March 27, 2020, respectively. Three-Month Period Ended Fiscal Year Ended March 26, 2021 December 25, 2020 March 27, 2020 March 26, 2021 March 27, 2020 (Dollars in thousands)Reconciliation of EBITDA and Adjusted EBITDA GAAP Net Income (Loss) $8,689 $(5,060) $13,329 $18,101 $37,105 Interest expense, net 668 2,598 50 2,603 110 Income tax provision (benefit) 8,361 (30,523) 4,463 (19,552) 16,173 Depreciation & amortization 12,082 12,199 16,440 48,307 64,048 EBITDA $29,800 $(20,786) $34,282 $49,459 $117,436 Non-core loss (gain) on sale of equipment 156 (7) 193 442 1,284 Miscellaneous legal judgement charge — 574 — 574 — Loss on debt extinguishment — 9,055 — 9,055 — Foreign currency translation loss (gain) 1,558 145 1,409 2,889 (1,391)Income in earnings of equity method investment (6) (949) — (1,413) — Stock-based compensation 2,969 45,876 384 49,870 1,435 AMTC facility consolidation one-time costs 2,113 2,228 106 7,812 106 COVID-19 related costs 322 435 581 5,228 581 Impairment of long-lived assets 7,119 — — 7,119 — Change in fair value of contingent consideration (2,500) — — (2,500) — Transaction fees 3,727 1,729 2,553 7,444 6,335 Severance — (181) 3,263 156 6,415 PSL and Sanken distribution agreement 930 1,500 — 8,628 — Adjusted EBITDA $46,188 $39,619 $42,771 $144,763 $132,201 % of sales 26.4% 24.1% 24.5% 24.5% 20.3% *Adjusted EBITDA and the corresponding calculation of Adjusted EBITDA Margin do not include adjustments for the following components of our net income: (i) additional AMTC related costs of $—, $1,217, and $4,911 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and labor savings costs of $—, $109, and $289 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively and (ii) AMTC additional costs of $7,276 and $11,224 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, and labor savings costs of $218 and $6,173 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively. Three-Month Period Ended Fiscal Year Ended March 26, 2021 December 25, 2020 March 27, 2020 March 26, 2021 March 27, 2020 (Dollars in thousands)Reconciliation of Profit (Loss) before Tax GAAP Profit (Loss) before Tax $17,050 $(35,583) $17,792 $(1,451) $53,278 Non-core loss (gain) on sale of equipment 156 (7) 193 442 1,284 Miscellaneous legal judgment charge — 574 — 574 — Loss on debt extinguishment — 9,055 — 9,055 — Foreign currency translation loss (gain) 1,558 145 1,409 2,889 (1,391)Income in earnings of equity investment (6) (949) — (1,413) — PSL and Sanken distribution agreement 930 1,500 — 8,628 — Stock-based compensation 2,969 45,876 384 49,870 1,435 Interest on repaid portion of Term Loan Facility — 2,163 — 2,163 — AMTC facility consolidation one-time costs 2,113 2,228 106 7,812 106 Amortization of acquisition-related intangible assets 310 344 — 768 — COVID-19 related expenses 322 435 581 5,228 581 Impairment of long-lived assets 7,119 — — 7,119 — Change in fair value of contingent consideration (2,500) — — (2,500) — Transaction fees 3,727 1,729 2,553 7,444 6,335 Severance — (181) 3,263 156 6,415 Total Non-GAAP Adjustments $16,698 $62,912 $8,489 $98,235 $14,765 Non-GAAP Profit before tax* $33,748 $27,329 $26,281 $96,784 $68,043 *Non-GAAP Profit before Tax does not include adjustments for the following components of our net income: (i) additional AMTC related costs of $—, $1,217, and $4,911 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and labor savings costs of $—, $109, and $289 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and (ii) additional AMTC related costs of $7,276 and $11,224 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, labor savings costs of $218 and $6,173 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, and out of period adjustment for depreciation expense of GMR assets of $768 and $— for the fiscal years ended March 26, 2021 and March 27, 2020, respectively. Three-Month Period Ended Fiscal Year Ended March 26, 2021 December 25, 2020 March 27, 2020 March 26, 2021 March 27, 2020 (Dollars in thousands)Reconciliation of Provision for Income Taxes GAAP Provision (Benefit) for Income Taxes $8,361 $(30,523) $4,463 $(19,552) $16,173 GAAP effective tax rate 32.0% 85.8% 25.1% 1347.5% 30.4% Tax effect of adjustments to GAAP results (3,053) 34,872 1,896 34,486 (2,601) Non-GAAP Provision for Income Taxes $5,308 $4,349 $6,359 $14,934 $13,572 Non-GAAP effective tax rate 15.7% 15.9% 24.2% 15.4% 20.0% *Non-GAAP Provision for Income Taxes does not include tax adjustments for the following components of our net income: additional AMTC related costs, labor savings costs, and out of period adjustment for depreciation expense of GMR assets. The related tax effect of those adjustments to GAAP results were $—, $297 and $652 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and $1,851 and $3,897 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively. Three-Month Period Ended Fiscal Year Ended March 26, 2021 December 25, 2020 March 27, 2020 March 26, 2021 March 27, 2020 (Dollars in thousands)Reconciliation of Net Income GAAP Net Income (Loss) $8,689 $(5,060) $13,329 $18,101 $37,105 Non-core loss (gain) on sale of equipment 156 (7) 193 442 1,284 Miscellaneous legal judgement charge — 574 — 574 — Loss on debt extinguishment — 9,055 — 9,055 — Foreign currency translation loss 1,558 145 2,800 2,889 — Income in earnings of equity investment (6) (949) (1,391) (1,413) (1,391)PSL and Sanken distribution agreement 930 1,500 — 8,628 — Stock-based compensation 2,969 45,876 384 49,870 1,435 Interest on repaid portion of Term Loan Facility — 2,163 — 2,163 — AMTC facility consolidation one-time costs 2,113 2,228 106 7,812 106 Amortization of acquisition-related intangible assets 310 344 — 768 — COVID-19 related expenses 322 435 581 5,228 581 Impairment of long-lived assets 7,119 — — 7,119 — Change in fair value of contingent consideration (2,500) — — (2,500) — Transaction fees 3,727 1,729 2,553 7,444 6,335 Severance — (181) 3,263 156 6,415 Tax effect of adjustments to GAAP results 3,053 (34,872) (1,896) (34,486) 2,601 Non-GAAP Net Income $28,440 $22,980 $19,922 $81,850 $54,471 Basic weighted average common shares 189,429,893 124,363,078 10,000,000 83,448,055 10,000,000 Diluted weighted average common shares 190,860,556 181,916,360 10,000,000 176,416,645 10,000,000 Non-GAAP Basic Earnings per Share $0.15 $0.18 $1.99 $0.98 $5.45 Non-GAAP Diluted Earnings per Share $0.15 $0.13 $1.99 $0.46 $5.45 *Non-GAAP Net Income does not include adjustments for the following components of our net income: (i) additional AMTC related costs of $—, $1,217, and $4,911 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and labor savings costs of $—, $109, and $289 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, (ii) additional AMTC related costs of $7,276 and $11,224 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, labor savings costs of $218 and $6,173 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, and out of period adjustment for depreciation expense of GMR assets of $768 and $— for the fiscal years ended March 26, 2021 and March 27, 2020, respectively, and (iii) the related tax effect of adjustments to GAAP results of $—, $297 and $652 for the three months ended March 26, 2021, December 25, 2020, and March 27, 2020, respectively, and $1,851 and $3,897 for the fiscal years ended March 26, 2021 and March 27, 2020, respectively. Investor Contact: Katherine Blye Investor Relations Phone: (603) 626-2306 kblye@ALLEGROMICRO.com

  • ACCESSWIRE

    Allegro Microsystems Inc. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / May 5, 2021 / Allegro Microsystems Inc. (NASDAQ:ALGM) will be discussing their earnings results in their 2021 Fourth Quarter Earnings call to be held on May 5, 2021 at 8:30 AM Eastern Time.