Fri, Aug 2, 12:32 PM (88 days ago)
Allegro MicroSystems, Inc. reported a significant decline in financial performance for the quarter ended June 28, 2024. Net sales decreased by 40% year-over-year to $166.9 million, primarily due to reduced inventory levels maintained by customers and a corresponding decline in shipments across all end markets. The gross profit margin also fell to 44.8% from 56.8%, driven by lower production volumes and unfavorable product mix. Operating expenses remained relatively stable, with research and development costs increasing slightly to $45.2 million and selling, general, and administrative expenses decreasing to $40.2 million. The company reported a net loss of $17.6 million, a significant drop from the net income of $60.9 million in the prior-year quarter. Cash and cash equivalents decreased to $173.1 million from $212.1 million at the end of the previous fiscal year, attributed mainly to a $50 million payment on the 2023 Term Loan Facility. The company completed a share repurchase agreement with Sanken Electric Co., Ltd., repurchasing 28.75 million shares for $621.5 million, funded by an equity offering. Allegro plans to amend its 2023 Revolving Credit Agreement to finance further share repurchases and increase revolving commitments.