Yahoo Finance Allegro Microsystems Inc (ALGM) Surpasses Analyst Revenue Forecasts with Record Sales in Fiscal ...
Annual Revenue: Reached $1.05 billion, an 8% increase year-over-year, surpassing the estimate of $1.043 billion.
Annual Net Income: Reported at $152.7 million, below the estimated $257.86 million.
Annual EPS: Non-GAAP EPS stood at $1.35, exceeding the forecast of $1.32.
Quarterly Revenue: Totaled $240.58 million for the fourth quarter, surpassing the estimated $234.93 million.
Quarterly Net Income: Recorded a net loss of $7.1 million, significantly below the estimated net income of $41.89 million.
Quarterly EPS: Non-GAAP EPS was $0.25, surpassing the quarterly estimate of $0.21.
Automotive Sales Growth: Automotive sales grew by 17% year-over-year, driven by a 38% increase in e-Mobility sales.
On May 9, 2024, Allegro Microsystems Inc (NASDAQ:ALGM) disclosed its financial achievements for the fourth quarter and the full fiscal year ended March 29, 2024, through its 8-K filing. The company reported a significant 8% increase in annual sales, reaching a new milestone with $1.05 billion in revenue, driven predominantly by a robust 38% growth in its E-Mobility segment and a 17% increase in automotive sales year-over-year.
About Allegro Microsystems Inc
Allegro Microsystems Inc is a premier global designer, developer, fabless manufacturer, and marketer of sensor integrated circuits (ICs) and application-specific analog power ICs. These products are critical for emerging technologies in the automotive and industrial markets. Allegro's innovative solutions are pivotal for the electrification of vehicles, automotive ADAS safety features, and Industry 4.0 automation, among other applications.
Financial Performance Highlights
The company's record sales reflect its strategic positioning in high-growth areas. For the fiscal year 2024, Allegro reported a substantial increase in automotive sales, totaling $759.454 million, up from $646.761 million in the previous year. This growth underscores the company's expanding influence in the automotive sector, particularly in E-Mobility.
Despite the impressive sales growth, Allegro faced some challenges in the fourth quarter, with a reported net loss of $7.115 million, contrasting sharply with the net income of $61.977 million in the same quarter of the previous year. This downturn was attributed to various factors, including increased operating expenses and a significant impairment of long-lived assets amounting to $13.218 million.
Operational and Strategic Developments
Allegro's CEO, Vineet Nargolwala, highlighted the company's strategic advancements, including the integration of TMR technology and the launch of high-voltage isolated gate drivers. These initiatives are expected to bolster Allegro's market-leading positions in magnetic sensing and power solutions, enhancing its long-term growth trajectory.
Looking forward, Allegro provided guidance for the first quarter of fiscal year 2025, projecting net sales between $160 million and $170 million. The company also anticipates a non-GAAP diluted earnings per share in the range of $0.01 to $0.03, reflecting cautious optimism amidst efforts to normalize business levels by managing inventory in the channel.
Balance Sheet and Cash Flow Insights
Allegro's balance sheet remains robust, with total assets increasing to $1.53 billion as of March 29, 2024, up from $1.18 billion the previous year. This growth in assets is supported by significant investments in property, plant, and equipment, and the acquisition of intangible assets, which are crucial for the company's expansion and innovation strategies.
The company also made a strategic move to reduce its debt burden by making a $50 million voluntary payment on its term loan, which is expected to decrease annualized interest expenses by approximately $4 million.
Conclusion
Allegro Microsystems Inc's fiscal year 2024 results demonstrate a resilient and evolving business capable of achieving significant milestones despite market challenges. The company's focus on E-Mobility and strategic technological advancements are set to drive its performance in the coming years, aligning with its vision of leading in high-growth areas of the semiconductor industry.
For detailed financial figures and future updates, stakeholders and interested investors are encouraged to view the full earnings webcast and consult the detailed financial statements available on Allegro's investor relations website.
Explore the complete 8-K earnings release (here) from Allegro Microsystems Inc for further details.
This article first appeared on GuruFocus.
