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EX - 99.1 2 earningsreleaseq2fy22.htm EX - 99.1 Exhibit 99.1 Allegro MicroSystems Reports Second Quarter of Fiscal Year 2022 Results --Company Achieves Record Quarterly Revenue and Profitability-- Manchester , NH , October 28 , 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 second quarter of fiscal year 2022 that ended September 24 , 2021. The Company's net sales increased 3 % sequentially and 42 % over the same period of the prior year to a new quarterly record of $ 193.6 million . The Company's successful execution of its strategic manufacturing and product portfolio transformation supported strong gross margins and significant earnings per share growth . Quarter Highlights : • • . • • Total net sales of $ 193.6 million exceeded expectations due to strength in industrial and other end markets . Automotive net sales of $ 126.0 million were up 41 % year - over - year . Record Industrial net sales of $ 36.3 million were up 68 % year - over - year . The Company continues to see record backlog and low inventory across the supply chain . GAAP gross margin of 53.0 % and non - GAAP gross margin of 53.8 % contributed to record high profitability . GAAP operating income for the quarter increased to $ 38.6 million , or 19.9 % of net sales . Non - GAAP operating income increased to $ 46.6 million , or 24.1 % of net sales , rising 11 % sequentially . Earnings per share exceeded expectations , with GAAP diluted EPS increasing to $ 0.17 in Q2 and non - GAAP diluted EPS increasing by 11 % sequentially to $ 0.20 . " Our strong Q2 performance highlights two key differentiators in the Allegro business model - our diversification into high growth markets and our structural transformation to achieve improved gross margins , ” said Ravi Vig , President and CEO of Allegro MicroSystems . " We are pleased with the progress in both our top line and our gross margin expansion . Despite temporary COVID - related supply chain disruptions affecting fiscal Q3 , supply recovery is already underway giving us confidence in a return to growth in Q4 and confidence in revenue growth of about 28 % in fiscal 2022. Based on strong end market positioning , business fundamentals , and design win momentum , we believe we are well positioned to deliver low to mid - teens revenue growth and strong gross margins for fiscal 2023. " Business Summary and Outlook Automotive represented 65 % of revenue and declined 6 % sequentially . Revenue was up 41 % year - over year , led by the Company's strategic focus areas of ADAS and xEV which continue to steadily increase as a percent of automotive revenue . Industrial end markets represented 19 % of revenue and increased 20 % sequentially and 68 % year over year , reaching a new quarterly high . Revenue increased sequentially across all of the Company's industrial end markets , including green energy and data center , showcasing the diverse nature of the business . For the third quarter ending December 24 , 2021 , the Company expects total net sales to be in the range of $ 180 million to $ 185 million . The anticipated sequential decline reflects the impact of COVID - related shutdowns of third - party factories in Malaysia that occurred recently . These factories are back online and , given continued strong demand and record levels of backlog , the Company expects a return to sequential growth in the fourth quarter . Based on accelerating design win momentum , the Company now has confidence in revenue growth in the low to mid - teens for fiscal 2023. Non - GAAP gross margin for the third quarter is expected to remain about flat to the new higher levels , and non - GAAP earnings per diluted share for the same period are expected to be in the range of $ 0.18 . Allegro has not provided a reconciliation of its third fiscal quarter outlook for non - GAAP gross margin and non - GAAP earnings per 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