In This Story
Allegro MicroSystems Inc. (ALGM-0.35%) has submitted its 10-Q filing for the quarterly period ended December 27, 2024.
The filing includes financial statements for the quarter, showing a decrease in total net sales to $177,872,000 from $254,984,000 in the same quarter the previous year. The decrease is attributed to a reduction in customer-held inventory and a decline in shipments across all end markets.
Cost of goods sold for the quarter was $96,657,000, representing 54.3% of sales, compared to 47.5% in the same quarter of the previous year. This increase in cost ratio is due to a reduction in production volume and changes in product mix.
The company reported a gross profit of $81,215,000 for the quarter, compared to $133,828,000 in the previous year, with the decline attributed to reduced net sales and changes in product mix.
Research and development expenses were $43,317,000, representing 24.4% of total net sales, compared to 17.4% in the same quarter of the previous year. The increase as a percentage of sales is due to the decline in net sales.
Selling, general, and administrative expenses decreased to $37,939,000 from $52,746,000, primarily due to a decrease in outside service costs and personnel expenses.
The company recorded an operating loss of $41,000 for the quarter, compared to an operating income of $36,686,000 in the previous year.
Interest expense increased to $7,762,000 from $3,854,000 due to higher interest payments on the Refinanced 2023 Term Loan Facility.
Net loss for the quarter was $6,799,000, compared to a net income of $33,402,000 in the previous year. The effective tax rate was 10.6%, compared to 8.2% in the previous year.
Cash provided by operating activities was $41,560,000, while cash used in investing and financing activities was $34,245,000 and $79,209,000, respectively.
Allegro had a working capital of $394,715,000 as of December 27, 2024. The company anticipates using cash on hand and capacity under its 2023 Revolving Credit Facility to support growth initiatives and planned capital expenditures.
The filing also details related party transactions, including share repurchase transactions with Sanken Electric Co., Ltd., and a financing transaction involving Polar Semiconductor, LLC.
Allegro continues to focus on expanding its operations in China, Japan, and India to directly manage and service customers in these markets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Allegro MicroSystems Inc. quarterly 10-Q report dated January 31, 2025. To report an error, please email earnings@qz.com.