Page 1

EX - 99.1 2 earningsreleaseq1fy22.htm EX - 99.1 Exhibit 99.1 Allegro MicroSystems Reports First Quarter Results Including Recent Records In Revenue and Profit --ADAS and xEV Demand Acceleration and Design Win Momentum Support Strong Growth and Margin Expansion-- Manchester , NH , July 29 , 2021 - 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 first fiscal quarter for fiscal year 2022 that ended June 25 , 2021. The Company delivered net sales of $ 188.1 million in the quarter , a sequential increase of 7 % . Strong gross margins and solid execution enabled significant earnings per share growth on both a GAAP and non - GAAP basis to $ 0.14 and $ 0.18 , respectively . The Company also achieved design win acceleration in key markets during the quarter , which it expects will provide increasing momentum for long - term growth potential . Quarter Highlights : • • • • Total net sales of $ 188.1 million were up 7 % sequentially and 64 % year over year . Automotive net sales increased 13 % sequentially in fiscal Q1 to a record $ 133.5 million , up 75 % year - over year . Industrial net sales of $ 30.3 million was also a record for the business . GAAP gross margin of 50.0 % and non - GAAP gross margin of 52.2 % represented recent records and strong progress towards the Company's target model . GAAP operating income for the quarter increased meaningfully to $ 32.2 million , or 17.1 % of net sales . Non - GAAP operating income increased 21.7 % sequentially to $ 41.9 million , or 22.3 % of net sales . GAAP diluted EPS increased by $ 0.09 sequentially to $ 0.14 in Q1 and non - GAAP diluted EPS increased by 20.0 % sequentially to $ 0.18 , exceeding prior expectations . " Record revenue in the first fiscal quarter was anchored on strength across our strategic product lines and end markets . Our Automotive and Industrial businesses both reached record revenue levels demonstrating strength across our increasingly diversified business . We achieved record revenue for both Magnetic Sensors and Power ICs , reflecting increased content in our target applications . Our gross margins continued to expand meaningfully this quarter , and our backlog is at historic highs , ” said Ravi Vig , President and CEO of Allegro MicroSystems . " Looking ahead , I am very enthusiastic about the prospects for the business . We believe the recovery is still in its early stages and even more importantly , that the underlying diversity of our business , the resilience of our operating model , our continued design win momentum and alignment to multiple growth vectors support the potential to outperform long - term . " Business Summary Automotive represented 71 % of revenue and increased 13 % sequentially to a record $ 133.5 million , up 75 % year - over year . Revenue increased sequentially across all of the Company's automotive end markets , with both ADAS and xEV revenue up nearly 80 % year over year . Design win momentum is significantly outpacing the Company's targets as a result of the transformative shift underway in the automotive business to high growth xEV and ADAS applications . Industrial represented 16 % of net sales and increased 4 % sequentially and 49 % year over year . Growth areas reflected the increasing diversification of the Company's served industrial end markets , with broad - based revenue delivering double digit growth . Business Outlook Given the strength of the backlog and extended order coverage , for the second quarter ending September 24 , 2021 , the Company expects total net sales to be in the range of $ 185 million to $ 191 million . Non - GAAP gross margin is expected to be about flat and non - GAAP earnings per fully - diluted share for the same period is expected to be in the range of $ 0.18 . Allegro has not provided a reconciliation of its second 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