Allegro Microsystems, Inc. Stock Price, News & Analysis

Allegro MicroSystems (ALGM) has unveiled new inductive position sensors and micropower magnetic switches at Electronica 2024. The new APS11753 and APS12753 switches achieve 50% lower power consumption compared to existing products, while offering higher sensitivity for enhanced air gap tolerance. The company also introduced A17802 and A17803 inductive position sensors featuring precise contactless angle sensing, wide temperature range operation, and integrated digital compensation.

These innovations target automotive, industrial, and consumer applications, particularly focusing on battery-powered devices and electric vehicle traction motors. The solutions aim to lower system costs, extend battery life, and improve reliability across various applications.

Allegro MicroSystems (ALGM) has unveiled a new series of power products aimed at automotive, industrial, and data center applications. The lineup includes 48V motor drivers (A89212, A89224, A89333), the APM81815 buck regulator, and the AHV85311 isolated gate driver. These products focus on improving efficiency, simplifying design, and reducing costs across various applications.

The solutions include features like extended battery life for power tools and eBikes, optimized fan and pump performance for automotive systems, improved thermal management for AI servers, and simplified power regulation for electric power steering and EV applications.

Allegro MicroSystems (ALGM) reported Q2 FY2025 results with total net sales of $187 million, showing a 12% sequential increase but a decline from $275.5 million year-over-year. Automotive sales reached $141.9 million while Industrial and other sales were $45.5 million. The company achieved a GAAP gross margin of 45.7% and non-GAAP gross margin of 48.8%. Non-GAAP EPS was $0.08, at the high end of guidance. For Q3 FY2025, Allegro expects net sales between $170-180 million with non-GAAP gross margin of 49-51% and diluted EPS of $0.04-0.08.

Allegro MicroSystems (Nasdaq: ALGM) has announced plans to release its second quarter fiscal 2025 financial results before the market opens on Thursday, October 31, 2024. Following the press release, the company will host a conference call at 8:30 a.m. Eastern Time to discuss the results and business outlook.

President and CEO Vineet Nargolwala and Senior VP and CFO Derek D'Antilio will lead the call. Analysts and investors are invited to join via a live webcast or dial-in. Advanced registration is required for dial-in participants. An archived audio webcast will be available on the company's investor relations website for at least 90 days after the event.

Allegro MicroSystems (Nasdaq: ALGM) has introduced two new XtremeSense™ TMR current sensors, CT455 and CT456, designed for high power density applications. These sensors offer high-bandwidth and low noise for precise current measurements in AI data centers and automotive powertrains. Utilizing Allegro's patented XtremeSense TMR technology, they provide superior magnetic sensitivity, low power consumption, and compact size compared to existing solutions.

The sensors enable smaller, more efficient, high-accuracy current measurements on PCB or Busbar applications from 80 A to over 800 A, with optimal performance in the 80-200 A range. They offer a contactless, non-intrusive solution with 1 MHz bandwidth and 300 ns response time, allowing for faster power conversion. These are the first TMR products launched since Allegro's acquisition of Crocus Technologies.

Allegro MicroSystems (Nasdaq: ALGM) reported Q1 2025 results with sales of $167 million, above the mid-point of their outlook. Non-GAAP EPS was $0.03, at the high end of the outlook. The company made a $50 million voluntary debt repayment and announced the repurchase of 39 million shares from its majority shareholder. Q1 automotive sales were $131.2 million, while industrial and other sales were $35.7 million. GAAP gross margin was 44.8%, and operating margin was -6.4%. For Q2 2025, Allegro expects net sales between $182-192 million and non-GAAP diluted EPS of $0.04-$0.08.

Allegro MicroSystems (Nasdaq: ALGM) has announced the allocation of a $400 million term loan tranche. This new loan will be used to:

• Facilitate the repurchase of shares from majority shareholder Sanken Electric Co.,
• Fully refinance Allegro's existing term loan facility
• Fund general corporate purposes

The new term loan is expected to mature on October 31, 2030, with an interest rate based on SOFR plus a 2.25% margin. This represents a 0.50% reduction compared to the existing term loan. The transaction is subject to market conditions and is not guaranteed to be completed as described.

Allegro MicroSystems (Nasdaq: ALGM) has completed the first of two share repurchases from its largest shareholder, Sanken Electric. The company is buying back a total of 39 million shares at $23.16 per share. The first repurchase of 29 million shares was financed by issuing new stock for $666 million. The second repurchase of 10 million shares will be financed through a term loan and cash on hand.

This move will reduce Sanken's ownership in Allegro from 50.8% to 32.5%. Sanken has agreed to a 14-month lock-up period. The companies have also amended their Stockholders Agreement, adjusting Sanken's board representation rights based on ownership levels. Allegro's CEO, Vineet Nargolwala, stated that this buyback will lead to broader ownership, increased liquidity, and improved governance.

Allegro MicroSystems (Nasdaq: ALGM) has announced the pricing of a primary offering of 25,000,000 shares of common stock at $24.00 per share, resulting in gross proceeds of $600,000,000. The company has also granted underwriters a 30-day option to purchase up to an additional 3,750,000 shares. Proceeds will be used to repurchase shares from majority shareholder Sanken Electric Co., , reducing Sanken's ownership to approximately 33.2% (or 32.5% if the underwriters' option is fully exercised). The offering is expected to close around July 26, 2024. Barclays, Morgan Stanley, and UBS Investment Bank are acting as joint lead book-running managers for the offering.