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Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2023 Results

— Fourth Quarter Sales increased by 35% and GAAP Earnings Per Share (EPS) increased by 138% Year-over-Year —

— Annual Sales increased by 27% and GAAP EPS increased by 56% Year-over-Year —

— Continued Growth in Automotive and Industrial Drove Record Sales for the
Fourth Quarter & Full Year —

MANCHESTER, N.H., May 10, 2023 (GLOBE NEWSWIRE) — 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 fourth quarter and fiscal year 2023 which ended March 31, 2023.

“We delivered a strong finish to fiscal year 2023, including record fourth quarter sales of $269 million, up 35% year-over-year. We also achieved record non-GAAP diluted earnings per share of $0.37, an increase of more than 75% year-over-year,” said Vineet Nargolwala, President and CEO of Allegro MicroSystems. “Solid fourth quarter results contributed to record fiscal year 2023 sales of $974 million, up 27% year-over-year. We saw significantly increased design win momentum in fiscal year 2023 with approximately two-thirds of our wins coming from strategic growth areas including e-Mobility and Industrial. E-Mobility increased to 43% of fiscal year 2023 Automotive sales, up from 36% in fiscal year 2022. The results in the fourth quarter and throughout the past year demonstrate further execution of our strategy.”

Fourth Quarter and Full Fiscal Year 2023 Financial Highlights:

In thousands, except per share data Quarter   Year
  Q4 FY23   Q3 FY23   Q4 FY22   FY23   FY22
Net Sales                  
Automotive $ 182,376     $ 168,055     $ 141,213     $ 657,479     $ 531,564  
Industrial   57,990       50,399       34,654       196,705       133,187  
Other   29,079       30,335       24,426       119,469       103,923  
Total net sales $ 269,445     $ 248,789     $ 200,293     $ 973,653     $ 768,674  
GAAP Financial Measures                  
Gross margin %   56.8 %     57.3 %     54.7 %     56.1 %     53.0 %
Operating margin %   23.4 %     26.4 %     15.1 %     20.8 %     17.8 %
Diluted EPS $ 0.32     $ 0.33     $ 0.13     $ 0.97     $ 0.62  
Non-GAAP Financial Measures                  
Gross margin %   57.8 %     58.0 %     55.6 %     56.8 %     54.1 %
Operating margin %   30.2 %     30.3 %     23.2 %     28.6 %     23.2 %
Diluted EPS $ 0.37     $ 0.35     $ 0.21     $ 1.28     $ 0.78  

Business Outlook

For the first quarter ending June 30, 2023, the Company expects total sales to be in the range of $270 million to $280 million. The company also estimates the following results on a non-GAAP basis:

  • Gross margin is expected to be approximately 56%
  • Operating expenses are anticipated to be between 26% and 27% of sales
  • Earnings per diluted share are expected to be in the range of $0.35 to $0.39

Allegro has not provided a reconciliation of its first fiscal quarter outlook for non-GAAP gross margin, non-GAAP operating expenses 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 comparable forward-looking GAAP measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, May 11, 2023 at 8:30 a.m. Eastern time. Vineet Nargolwala, President and Chief Executive Officer, and Derek D’Antilio, Chief Financial Officer, will discuss Allegro’s business and financial results.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and green energy applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance for our first fiscal quarter ending June 30, 2023. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “target,” “mission,” “may,” “will,” “would,” “project,” “predict,” “contemplate,” “potential,” or the negative thereof and similar words and expressions.

Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to: downturns or volatility in general economic conditions, including as a result of the COVID-19 pandemic, particularly in the automotive market; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party wafer fabrication facilities and suppliers of other materials; our failure to adjust purchase commitments, supply chain volume and inventory management based on changing market conditions or customer demand; shifts in our product mix or customer mix, which could negatively impact our gross margin; the cyclical nature of the analog semiconductor industry; our ability to compensate for decreases in average selling prices of our products and increases in input costs; increases in inflation rates or sustained periods of inflation in the markets in which we operate; any disruptions at our primary third-party wafer fabrication facilities; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication semiconductor facilities or in the final assembly and test of our products; our ability to fully realize the benefits of past and potential future initiatives designed to improve our competitiveness, growth and profitability; our ability to accurately predict our quarterly net sales and operating results; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; COVID-19 induced lock-downs and suppression on our supply chain and customer demand; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of tariffs and export restrictions; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks related to governmental regulation and other legal obligations, including privacy, data protection, information security, consumer protection, environmental and occupational health and safety, anti-corruption and anti-bribery, and trade controls; the volatility of currency exchange rates; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or those of our third-party service providers; our principal stockholders have substantial control over us; the inapplicability of the “corporate opportunity” doctrine to any director or stockholder who is not employed by us; the dilutive impact on the price of our shares upon future issuance by us or future sales by our stockholders; our lack of intent to declare or pay dividends for the foreseeable future; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; the exclusive forum provision in our Certificate of Incorporation for disputes with stockholders; our inability to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on May 18, 2022, as amended by Amendment No. 1 on Form 10-K/A filed with the SEC on August 29, 2022, as any such factors may be updated or supplemented from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors Relations page of our website at investors.allegromicro.com.

All forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

ALLEGRO MICROSYSTEMS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)

  Three-Month Period Ended   Fiscal Year Ended
  March 31,
2023
  March 25,
2022
  March 31,
2023
  March 25,
  (Unaudited)   (Unaudited)   (Unaudited)   2022
Net sales $ 240,534     $ 163,559     $ 812,890     $ 619,861  
Net sales to related party   28,911       36,734       160,763       148,813  
Total net sales   269,445       200,293       973,653       768,674  
Cost of goods sold   100,585       72,044       348,390       286,855  
Cost of goods sold to related party   15,771       18,646       79,184       74,359  
Gross profit   153,089       109,603       546,079       407,460  
Operating expenses:              
Research and development   41,833       32,432       150,850       121,873  
Selling, general and administrative   48,252       46,822       194,722       150,937  
Change in fair value of contingent consideration   (100 )     100       (2,800 )     (2,000 )
Total operating expenses   89,985       79,354       342,772       270,810  
Operating income   63,104       30,249       203,307       136,650  
Other income (expense):              
Interest expense   (755 )     (418 )     (2,336 )     (2,499 )
Interest income   580       1,125       1,724       1,442  
Foreign currency transaction gain (loss)   (1,617 )     (513 )     980       (568 )
(Loss) income in earnings of equity investment   (703 )     215       (406 )     1,007  
Unrealized gains (losses) on marketable securities   7,476       (760 )     7,471       3,722  
Other, net   (164 )     258       606       992  
Income before income taxes   67,921       30,156       211,346       140,746  
Income tax provision   5,909       4,504       23,852       21,191  
Net income   62,012       25,652       187,494       119,555  
Net income attributable to non-controlling interests   35       36       137       148  
Net income attributable to Allegro MicroSystems, Inc. $ 61,977     $ 25,616     $ 187,357     $ 119,407  
Net income attributable to Allegro MicroSystems, Inc. per share:              
Basic $ 0.32     $ 0.13     $ 0.98     $ 0.63  
Diluted $ 0.32     $ 0.13     $ 0.97     $ 0.62  
Weighted average shares outstanding:              
Basic   191,519,850       189,997,738       191,197,452       189,748,427  
Diluted   194,993,241       192,125,252       193,688,102       191,811,205  

Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited consolidated statements of operations:

  Three-Month Period Ended   Change   Fiscal Year Ended   Change
  March 31,
2023
  March 25,
2022
  Amount   %   March 31,
2023
  March 25,
2022
  Amount   %
   
  (Dollars in thousands)
Automotive $ 182,376   $ 141,213   $ 41,163   29.1 %   $ 657,479   $ 531,564   $ 125,915   23.7 %
Industrial   57,990     34,654     23,336   67.3 %     196,705     133,187     63,518   47.7 %
Other   29,079     24,426     4,653   19.0 %     119,469     103,923     15,546   15.0 %
Total net sales   269,445     200,293     69,152   34.5 %     973,653     768,674     204,979   26.7 %

ALLEGRO MICROSYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
  March 31,
2023
  March 25,
  (Unaudited)   2022
Assets      
Current assets:      
Cash and cash equivalents $ 351,576     $ 282,383  
Restricted cash   7,129       7,416  
Trade accounts receivable, net of provision for expected credit losses   111,290       87,359  
Trade and other accounts receivable due from related party   13,494       27,360  
Accounts receivable – other   1,943       4,144  
Inventories   151,301       86,160  
Prepaid expenses and other current assets   25,346       14,995  
Current portion of related party note receivable   3,750       1,875  
Total current assets   665,829       511,692  
Property, plant and equipment, net   263,099       210,028  
Operating lease right-of-use assets   16,866       16,049  
Deferred income tax assets   50,359       17,967  
Goodwill   27,691       20,009  
Intangible assets, net   52,378       35,970  
Related party note receivable, less current portion   8,438       5,625  
Equity investment in related party   27,265       27,671  
Other assets, net   69,230       47,609  
Total assets $ 1,181,155     $ 892,620  
Liabilities, Non-Controlling Interests and Stockholders’ Equity      
Current liabilities:      
Trade accounts payable $ 56,256     $ 29,836  
Amounts due to related parties   9,682       5,222  
Accrued expenses and other current liabilities   94,894       65,459  
Current portion of operating lease liabilities   4,493       3,706  
Total current liabilities   165,325       104,223  
Obligations due under Senior Secured Credit Facilities   25,000       25,000  
Operating lease liabilities, less current portion   13,048       12,748  
Other long-term liabilities   10,967       15,286  
Total liabilities   214,340       157,257  
Commitments and contingencies      
Stockholders’ Equity:      
Preferred Stock, $0.01 par value; 20,000,000 shares authorized, no shares issued or outstanding at March 31, 2023 and March 25, 2022          
Common stock, $0.01 par value; 1,000,000,000 shares authorized, 191,754,292 shares issued and outstanding at March 31, 2023; 1,000,000,000 shares authorized, 190,473,595 issued and outstanding at March 25, 2022   1,918       1,905  
Additional paid-in capital   674,179       627,792  
Retained earnings   310,315       122,958  
Accumulated other comprehensive loss   (20,784 )     (18,448 )
Equity attributable to Allegro MicroSystems, Inc.   965,628       734,207  
Non-controlling interests   1,187       1,156  
Total stockholders’ equity   966,815       735,363  
Total liabilities, non-controlling interests and stockholders’ equity $ 1,181,155     $ 892,620  

ALLEGRO MICROSYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

  Fiscal Year Ended
  March 31,
2023
  March 25,
  (Unaudited)   2022
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $ 187,494     $ 119,555  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization   50,808       48,527  
Amortization of deferred financing costs   99       101  
Deferred income taxes   (40,116 )     7,498  
Stock-based compensation   61,798       33,548  
Loss (gain) on disposal of assets   285       (349 )
Change in fair value of contingent consideration   (2,800 )     (2,000 )
Provisions for inventory and receivables reserves   (1,438 )     6,297  
Unrealized gains on marketable securities   (7,471 )     (3,722 )
Changes in operating assets and liabilities:      
Trade accounts receivable   (12,484 )     (18,347 )
Accounts payable (receivable) – other   2,226       (2,668 )
Inventories   (75,150 )     (4,471 )
Prepaid expenses and other assets   (23,263 )     (19,450 )
Trade accounts payable   11,958       (4,348 )
Due to/from related parties   18,326       (659 )
Accrued expenses and other current and long-term liabilities   22,934       (3,383 )
Net cash provided by operating activities   193,206       156,129  
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchases of property, plant and equipment   (79,775 )     (69,941 )
Acquisition of business, net of cash acquired   (19,921 )     (14,549 )
Proceeds from sales of property, plant and equipment         27,408  
Investments in marketable securities         (9,189 )
Net cash used in investing activities   (99,696 )     (66,271 )
CASH FLOWS FROM FINANCING ACTIVITIES:      
Loans made to related party   (7,500 )     (7,500 )
Receipts on related party notes receivable   2,812        
Proceeds from issuance of common stock under equity award and purchase plans less payments for taxes related to net share settlement of equity awards   (15,268 )     2,193  
Dividends paid to non-controlling interest   (42 )      
Net cash used in by financing activities   (19,998 )     (5,307 )
Effect of exchange rate changes on Cash and cash equivalents and Restricted cash   (4,606 )     1,373  
Net increase in Cash and cash equivalents and Restricted cash   68,906       85,924  
Cash and cash equivalents and Restricted cash at beginning of period   289,799       203,875  
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD: $ 358,705     $ 289,799  
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:      
Cash and cash equivalents at beginning of period $ 282,383     $ 197,214  
Restricted cash at beginning of period   7,416       6,661  
Cash and cash equivalents and Restricted cash at beginning of period $ 289,799     $ 203,875  
Cash and cash equivalents at end of period   351,576       282,383  
Restricted cash at end of period   7,129       7,416  
Cash and cash equivalents and Restricted cash at end of period $ 358,705     $ 289,799  

Non-GAAP Financial Measures

In addition to the measures presented in our consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, non-GAAP Profit before Tax, non-GAAP Provision for Income Tax, non-GAAP Net Income, non-GAAP Net Income per Share, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Provision for Income Tax, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Provision for Income Taxes across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These non-GAAP measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related party activities and other non-operational costs such as the impact of COVID 19.

Non-GAAP Provision for Income Tax

In calculating non-GAAP Provision for Income Tax, we have added back the following to GAAP Income Tax Provision:

  • Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit Before Tax described above and elimination of discrete tax adjustments.
    Three-Month Period Ended   Fiscal Year Ended
    March 31,
2023
  December 23,
2022
  March 25,
2022
  March 31,
2023
  March 25,
2022
    (Dollars in thousands)
Reconciliation of Non-GAAP Gross Profit                    
                     
GAAP Gross Profit   $ 153,089     $ 142,594     $ 109,603     $ 546,079     $ 407,460  
                     
Voxtel inventory impairment                             3,106  
Stock-based compensation     1,978       1,156       1,184       5,090       3,176  
AMTC Facility consolidation one-time costs                             144  
Amortization of acquisition-related intangible assets     627       589       273       1,867       1,092  
COVID-19 related expenses                 296             1,092  
Total Non-GAAP Adjustments   $ 2,605     $ 1,745     $ 1,753     $ 6,957     $ 8,610  
                     
Non-GAAP Gross Profit   $ 155,694     $ 144,339     $ 111,356     $ 553,036     $ 416,070  
Non-GAAP Gross Margin     57.8 %     58.0 %     55.6 %     56.8 %     54.1 %

    Three-Month Period Ended   Fiscal Year Ended
    March 31,
2023
  December 23,
2022
  March 25,
2022
  March 31,
2023
  March 25,
2022
     
    (Dollars in thousands)
Reconciliation of Non-GAAP Operating Expenses                    
                     
GAAP Operating Expenses   $ 89,985     $ 76,966   $ 79,354   $ 342,772     $ 270,810  
                     
Research and Development Expenses                    
GAAP Research and Development Expenses     41,833       39,593     32,432     150,850       121,873  
Stock-based compensation     3,483       3,174     1,119     9,496       3,933  
AMTC Facility consolidation one-time costs                         2  
COVID-19 related expenses               3           23  
Transaction fees           1     5     404       5  
Severance     72               72        
Non-GAAP Research and Development Expenses     38,278       36,418     31,305     140,878       117,910  
                     
Selling, General and Administrative Expenses                    
GAAP Selling, General and Administrative Expenses     48,252       37,373     46,822     194,722       150,937  
Stock-based compensation     5,095       4,572     12,598     47,212       26,439  
AMTC Facility consolidation one-time costs     124       291     74     601       657  
Amortization of acquisition-related intangible assets     22       23     22     90       90  
COVID-19 related expenses               215           1,503  
Indirect transaction tax     944               944        
Transaction fees     644       35     384     2,339       1,498  
Sanken agreement termination fee     5,000               5,000        
Severance     368               4,554       746  
Non-GAAP Selling, General and Administrative Expenses     36,055       32,452     33,529     133,982       120,004  
                     
Change in fair value of contingent consideration     (100 )         100     (2,800 )     (2,000 )
                     
Total Non-GAAP Adjustments     15,652       8,096     14,520     67,912       32,896  
                     
Non-GAAP Operating Expenses   $ 74,333     $ 68,870   $ 64,834   $ 274,860     $ 237,914  

    Three-Month Period Ended   Fiscal Year Ended
    March 31,
2023
  December 23,
2022
  March 25,
2022
  March 31,
2023
  March 25,
2022
     
    (Dollars in thousands)
Reconciliation of Non-GAAP Operating Income                    
                     
GAAP Operating Income   $ 63,104     $ 65,628     $ 30,249     $ 203,307     $ 136,650  
                     
Voxtel inventory impairment                             3,106  
Stock-based compensation     10,556       8,902       14,901       61,798       33,548  
AMTC Facility consolidation one-time costs     124       291       74       601       803  
Amortization of acquisition-related intangible assets     649       612       295       1,957       1,182  
COVID-19 related expenses                 514             2,618  
Change in fair value of contingent consideration     (100 )           100       (2,800 )     (2,000 )
Indirect transaction tax     944                   944        
Transaction fees     644       36       389       2,743       1,503  
Sanken agreement termination fee     5,000                   5,000        
Severance     440                   4,626       746  
Total Non-GAAP Adjustments   $ 18,257     $ 9,841     $ 16,273     $ 74,869     $ 41,506  
                     
Non-GAAP Operating Income   $ 81,361     $ 75,469     $ 46,522     $ 278,176     $ 178,156  
Non-GAAP Operating Margin (% of net sales)     30.2 %     30.3 %     23.2 %     28.6 %     23.2 %

    Three-Month Period Ended   Fiscal Year Ended
    March 31,
2023
  December 23,
2022
  March 25,
2022
  March 31,
2023
  March 25,
2022
     
    (Dollars in thousands)
Reconciliation of EBITDA and Adjusted EBITDA                    
                     
GAAP Net Income   $ 62,012     $ 64,551     $ 25,652     $ 187,494     $ 119,555  
                     
Interest expense     755       613       418       2,336       2,499  
Interest income     (580 )     (360 )     (1,125 )     (1,724 )     (1,442 )
Income tax provision     5,909       7,540       4,504       23,852       21,191  
Depreciation & amortization     14,103       12,580       12,006       50,808       48,527  
EBITDA   $ 82,199     $ 84,924     $ 41,455     $ 262,766     $ 190,330  
                     
Non-core (gain) loss on sale of equipment     (2 )     37       1       285       (349 )
Voxtel inventory impairment                             3,106  
Foreign currency translation loss (gain)     1,617       (407 )     513       (980 )     568  
(Loss) income in earnings of equity investment     703       (2,190 )     (215 )     406       (1,007 )
Unrealized (gains) losses on investments     (7,476 )     (3,453 )     760       (7,471 )     (3,722 )
Stock-based compensation     10,556       8,902       14,901       61,798       33,548  
AMTC Facility consolidation one-time costs     124       291       74       601       803  
COVID-19 related expenses                 514             2,618  
Change in fair value of contingent consideration     (100 )           100       (2,800 )     (2,000 )
Indirect transaction tax     944                   944        
Transaction fees     644       36       389       2,743       1,503  
Sanken agreement termination fee     5,000                   5,000        
Severance     440                   4,626       746  
Adjusted EBITDA   $ 94,649     $ 88,140     $ 58,492     $ 327,918     $ 226,144  
Adjusted EBITDA Margin (% of net sales)     35.1 %     35.4 %     29.2 %     33.7 %     29.4 %

    Three-Month Period Ended   Fiscal Year Ended
    March 31,
2023
  December 23,
2022
  March 25,
2022
  March 31,
2023
  March 25,
2022
     
    (Dollars in thousands)
Reconciliation of Non-GAAP Profit before Tax                    
                     
GAAP Income before Income Taxes   $ 67,921     $ 72,091     $ 30,156     $ 211,346     $ 140,746  
                     
Non-core (gain) loss on sale of equipment     (2 )     37       1       285       (349 )
Voxtel inventory impairment                             3,106  
Foreign currency translation loss (gain)     1,617       (407 )     513       (980 )     568  
(Loss) income in earnings of equity investment     703       (2,190 )     (215 )     406       (1,007 )
Unrealized (gains) losses on investments     (7,476 )     (3,453 )     760       (7,471 )     (3,722 )
Stock-based compensation     10,556       8,902       14,901       61,798       33,548  
AMTC Facility consolidation one-time costs     124       291       74       601       803  
Amortization of acquisition-related intangible assets     649       612       295       1,957       1,182  
COVID-19 related expenses                 514             2,618  
Change in fair value of contingent consideration     (100 )           100       (2,800 )     (2,000 )
Indirect transaction tax     944                   944        
Transaction fees     644       36       389       2,743       1,503  
Sanken agreement termination fee     5,000                   5,000        
Severance     440                   4,626       746  
Total Non-GAAP Adjustments   $ 13,099     $ 3,828     $ 17,332     $ 67,109     $ 36,996  
                     
Non-GAAP Profit before Tax   $ 81,020     $ 75,919     $ 47,488     $ 278,455     $ 177,742  

    Three-Month Period Ended   Fiscal Year Ended
    March 31,
2023
  December 23,
2022
  March 25,
2022
  March 31,
2023
  March 25,
2022
     
    (Dollars in thousands)
Reconciliation of Non-GAAP Provision for Income Taxes                    
                     
GAAP Income Tax Provision   $ 5,909     $ 7,540     $ 4,504     $ 23,852     $ 21,191  
GAAP effective tax rate     8.7 %     10.5 %     14.9 %     11.3 %     15.1 %
                     
Tax effect of adjustments to GAAP results     3,509       (461 )     2,817       7,285       6,415  
                     
Non-GAAP Provision for Income Taxes   $ 9,418     $ 7,079     $ 7,321     $ 31,137     $ 27,606  
Non-GAAP effective tax rate     11.6 %     9.3 %     15.4 %     11.2 %     15.5 %

    Three-Month Period Ended   Fiscal Year Ended
    March 31,
2023
  December 23,
2022
  March 25,
2022
  March 31,
2023
  March 25,
2022
     
    (Dollars in thousands)
Reconciliation of Non-GAAP Net Income                    
                     
GAAP Net Income   $ 62,012     $ 64,551     $ 25,652     $ 187,494     $ 119,555  
GAAP Basic Earnings per Share   $ 0.32     $ 0.34     $ 0.14     $ 0.98     $ 0.63  
GAAP Diluted Earnings per Share   $ 0.32     $ 0.33     $ 0.13     $ 0.97     $ 0.62  
                     
Non-core (gain) loss on sale of equipment     (2 )     37       1       285       (349 )
Voxtel inventory impairment                             3,106  
Foreign currency translation loss (gain)     1,617       (407 )     513       (980 )     568  
(Loss) income in earnings of equity investment     703       (2,190 )     (215 )     406       (1,007 )
Unrealized (gains) losses on investments     (7,476 )     (3,453 )     760       (7,471 )     (3,722 )
Stock-based compensation     10,556       8,902       14,901       61,798       33,548  
AMTC Facility consolidation one-time costs     124       291       74       601       803  
Amortization of acquisition-related intangible assets     649       612       295       1,957       1,182  
COVID-19 related expenses                 514             2,618  
Change in fair value of contingent consideration     (100 )           100       (2,800 )     (2,000 )
Indirect transaction tax     944                   944        
Transaction fees     644       36       389       2,743       1,503  
Sanken agreement termination fee     5,000                   5,000        
Severance     440                   4,626       746  
Tax effect of adjustments to GAAP results     (3,509 )     461       (2,817 )     (7,285 )     (6,415 )
                     
Non-GAAP Net Income   $ 71,602     $ 68,840     $ 40,167     $ 247,318     $ 150,136  
Basic weighted average common shares     191,519,850       191,328,538       189,997,738       191,197,452       189,748,427  
Diluted weighted average common shares     194,993,241       193,935,908       192,125,252       193,688,102       191,811,205  
Non-GAAP Basic Earnings per Share   $ 0.37     $ 0.36     $ 0.21     $ 1.29     $ 0.79  
Non-GAAP Diluted Earnings per Share   $ 0.37     $ 0.35     $ 0.21     $ 1.28     $ 0.78  

Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
[email protected] 

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