• Allegro MicroSystems Reports Third Quarter 2024 Results

    المصدر: Nasdaq GlobeNewswire / 01 فبراير 2024 07:00:13   America/New_York

    –Total Sales Increased 2% Year-over-Year –
    –E-Mobility Drives 18% Year-over-Year Increase in Automotive Sales –

    MANCHESTER, N.H., Feb. 01, 2024 (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 third quarter ended December 29, 2023.

    “We delivered third-quarter net sales of $255 million, up 2% year-over-year, driven by continued strength in Automotive, which grew 18% year-over-year. Non-GAAP EPS was $0.32, 10% above the midpoint of guidance on in-line sales, and free cash flow increased $27 million, or more than 170% sequentially,” said Vineet Nargolwala, President and CEO of Allegro. "Sales into e-Mobility applications increased by 45% year-over-year to 54% of third-quarter Automotive sales, establishing a new milestone. While we expect continued inventory digestion across end markets in the short-term, our design win momentum continues at record levels and reinforces our confidence in our ability to grow above market in the mid to long term, consistent with our target financial model.”

    Third Quarter Financial Highlights:

    In thousands, except per share data Three-Month Period Ended  Nine-Month Period Ended 
      December 29,
    2023    		  September 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
      (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited) 
    Net Sales*               
    Automotive $194,764  $197,321  $164,719  $577,515  $467,959 
    Industrial  45,949   60,962   53,737   180,021   146,797 
    Other  14,271   17,226   30,333   51,250   89,452 
    Total net sales $254,984  $275,509  $248,789  $808,786  $704,208 
    GAAP Financial Measures               
    Gross margin %  52.5%  57.9%  57.3%  55.8%  55.8%
    Operating margin %  14.4%  26.5%  26.4%  22.3%  19.9%
    Diluted EPS $0.17  $0.34  $0.33  $0.82  $0.65 
    Non-GAAP Financial Measures               
    Gross margin %  54.6%  58.3%  58.0%  57.0%  56.4%
    Operating margin %  27.2%  31.3%  30.3%  29.8%  27.9%
    Diluted EPS $0.32  $0.40  $0.35  $1.11  $0.91 

    *During the preparation of the third quarter fiscal year 2024 interim condensed consolidated financial statements, the Company identified an immaterial error in the classification of net sales by application within the table above, whereby customer returns and sales allowances were incorrectly classified by application between Automotive, Industrial and Other in the prior periods presented above. There was no impact to previously reported total net sales or net income in any of the periods noted above. 

    Business Outlook

    For the fourth quarter ending March 29, 2024, the Company expects net sales to be in the range of $230 million to $240 million. The Company also estimates the following results on a non-GAAP basis:

    • Gross Margin is expected to be between 53% and 54%,
    • Operating Expenses are expected to be approximately 31% of sales, and
    • Diluted Earnings per Share is expected to be in the range of $0.19 to $0.23.

    “Allegro is well positioned to support the megatrends of electrification and automation, and we are taking appropriate actions to navigate near-term impacts from inventory digestion,” said Derek D’Antilio, CFO of Allegro. “We are prudently managing our costs and significantly improving cash flow while continuing to invest strategically for growth.”

    Allegro has not provided a reconciliation of its fourth fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, and non-GAAP Diluted Earnings per 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 U.S. generally accepted accounting principles (“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, February 1, 2024 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 clean energy applications.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors affecting our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

    Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance, or achievements, and one should avoid placing undue reliance on such statements.

    Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking 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 factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 31, 2023, as updated in Part II, Item 1A “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended September 29, 2023, filed with the SEC on November 6, 2023. These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; 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 semiconductor wafer fabrication facilities and suppliers of other materials; our failure to adjust purchase commitments 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 risk that the expected benefits of acquisitions may not be realized or that integration of acquired businesses may not continue as rapidly as we anticipate; the cyclical nature of the analog semiconductor industry; any downturn or disruption in the automotive market; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results; our ability to adjust our supply chain volume to account for changing market conditions and customer demand; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; the effects of COVID-19 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 export restrictions and tariffs; 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, liabilities, costs and obligations related to governmental regulation and other legal obligations, including export control, 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 ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and 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; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; our inability to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; disruptions in the banking and financial sector that limit our or our partners’ ability to access capital and borrowings; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

    You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. 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, whether as a result of any new information, future events, changed circumstances or otherwise.

    This press release includes certain non-GAAP financial measures as defined by the Securities and Exchange Commission (“SEC”) rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

    This press release may not be reproduced, forwarded to any person or published, in whole or in part.

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

     Three-Month Period Ended  Nine-Month Period Ended 
     December 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
    Net sales$254,984  $248,789  $808,786  $704,208 
    Cost of goods sold 121,156   106,195   357,505   311,218 
    Gross profit 133,828   142,594   451,281   392,990 
    Operating expenses:           
    Research and development 44,396   39,593   130,799   109,017 
    Selling, general and administrative 52,746   37,373   140,135   143,770 
    Total operating expenses 97,142   76,966   270,934   252,787 
    Operating income 36,686   65,628   180,347   140,203 
    Interest and other income (expense) (315)  6,463   (2,801)  3,222 
    Income before income taxes 36,371   72,091   177,546   143,425 
    Income tax provision 2,969   7,540   17,584   17,943 
    Net income 33,402   64,551   159,962   125,482 
    Net income attributable to non-controlling interests 57   32   150   102 
    Net income attributable to Allegro MicroSystems, Inc.$33,345  $64,519  $159,812  $125,380 
    Net income per common share attributable to Allegro MicroSystems, Inc.:           
    Basic$0.17  $0.34  $0.83  $0.66 
    Diluted$0.17  $0.33  $0.82  $0.65 
    Weighted average shares outstanding:           
    Basic 192,724,541   191,328,538   192,384,315   191,082,141 
    Diluted 194,570,380   193,935,908   194,925,040   193,100,762 


    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  Nine-Month Period Ended  Change 
      December 29,
    2023    		  December 23,
    2022    		  Amount  %  December 29,
    2023    		  December 23,
    2022    		  Amount  % 
      (Dollars in thousands)  (Dollars in thousands) 
    Automotive $194,764  $164,719  $30,045   18% $577,515  $467,959  $109,556   23%
    Industrial  45,949   53,737   (7,788)  (14)%  180,021   146,797   33,224   23%
    Other  14,271   30,333   (16,062)  (53)%  51,250   89,452   (38,202)  (43)%
    Total net sales $254,984  $248,789  $6,195   2% $808,786  $704,208  $104,578   15%


    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except share and per share amounts)

     December 29,  March 31, 
     2023
    (Unaudited)    		  2023 
    Assets     
    Current assets:     
    Cash and cash equivalents$214,308  $351,576 
    Restricted cash 9,427   7,129 
    Trade accounts receivable, net 114,324   111,290 
    Trade and other accounts receivable due from related party 154   13,494 
    Inventories 165,553   151,301 
    Prepaid expenses and other current assets 41,980   27,289 
    Current portion of related party note receivable 3,750   3,750 
    Total current assets 549,496   665,829 
    Property, plant and equipment, net 325,822   263,099 
    Deferred income tax assets 79,420   50,359 
    Goodwill 214,709   27,691 
    Intangible assets, net 293,699   52,378 
    Related party note receivable, less current portion 5,625   8,438 
    Equity investment in related party 25,974   27,265 
    Other assets 70,556   86,096 
    Total assets$1,565,301  $1,181,155 
    Liabilities, Non-Controlling Interests and Stockholders' Equity     
    Current liabilities:     
    Trade accounts payable$37,633  $56,256 
    Amount due to related party 3,158   9,682 
    Accrued expenses and other current liabilities 75,437   99,387 
    Current portion of long-term debt 3,959   — 
    Total current liabilities 120,187   165,325 
    Long-term debt 250,464   25,000 
    Other long-term liabilities 59,164   24,015 
    Total liabilities 429,815   214,340 
    Commitments and contingencies     
    Stockholders' Equity:     
    Preferred stock —   — 
    Common stock 1,931   1,918 
    Additional paid-in capital 684,063   674,179 
    Retained earnings 470,127   310,315 
    Accumulated other comprehensive loss (21,889)  (20,784)
    Equity attributable to Allegro MicroSystems, Inc. 1,134,232   965,628 
    Non-controlling interests 1,254   1,187 
    Total stockholders' equity 1,135,486   966,815 
    Total liabilities, non-controlling interests and stockholders' equity$1,565,301  $1,181,155 


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

     Three Months Ended  Nine Months Ended 
     December 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
    Cash flows from operating activities:           
    Net income$33,402  $64,551  $159,962  $125,482 
    Adjustments to reconcile net income to net cash provided by operating activities:           
    Depreciation and amortization 20,195   12,580   49,548   36,705 
    Amortization of deferred financing costs 185   25   292   74 
    Deferred income taxes (10,119)  (11,956)  (28,253)  (28,387)
    Stock-based compensation 10,920   8,902   32,839   51,242 
    Loss on disposal of assets (25)  37   18   287 
    Change in fair value of contingent consideration —   —   —   (2,700)
    Provisions for inventory and receivables reserves 429   1,512   9,851   1,744 
    Change in fair value of marketable securities —   (3,453)  3,579   5 
    Changes in operating assets and liabilities:           
    Trade accounts receivable 5,081   (11,414)  (2,564)  (5,894)
    Accounts receivable - other (93)  (546)  (462)  2,000 
    Inventories 11,312   (21,808)  (19,909)  (39,136)
    Prepaid expenses and other assets 7,461   (8,291)  (12,623)  (17,761)
    Trade accounts payable (12,299)  10,625   (9,604)  19,553 
    Due to (from) related party 705   2,408   6,817   (3,273)
    Accrued expenses and other current and long-term liabilities 9,404   10,682   (20,540)  5,717 
    Net cash provided by operating activities 76,558   53,854   168,951   145,658 
    Cash flows from investing activities:           
    Purchases of property, plant and equipment (34,399)  (14,343)  (110,500)  (49,563)
    Acquisition of business, net of cash acquired (408,119)  —   (408,119)  (19,728)
    Proceeds from sale of marketable securities —   —   16,175   — 
    Net cash used in investing activities (442,518)  (14,343)  (502,444)  (69,291)
    Cash flows from financing activities:           
    Loans made to related party —   —   —   (7,500)
    Repayment Borrowings of senior secured debt, net of deferred financing costs (25,000)  —   (25,000)  — 
    Repayment of term loan facility 245,452   —   245,452   — 
    Repayment of senior secured debt (743)  —   (743)  — 
    Receipts on related party note receivable 938   938   2,813   1,875 
    Payments for taxes related to net share settlement of equity awards (10,732)  (3,036)  (24,823)  (12,642)
    Proceeds from issuance of common stock under employee stock purchase plan —   —   1,899   1,573 
    Payment for debt issuance costs —   —   (1,450)  — 
    Net cash provided by (used in) financing activities 209,915   (2,098)  198,148   (16,694)
    Effect of exchange rate changes on cash and cash equivalents and restricted cash 1,349   3,433   375   (5,344)
    Net (decrease) increase in cash and cash equivalents and restricted cash (154,696)  40,846   (134,970)  54,329 
    Cash and cash equivalents and restricted cash at beginning of period 378,431   303,282   358,705   289,799 
    Cash and cash equivalents and restricted cash at end of period:$223,735  $344,128  $223,735  $344,128 


    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 and non-GAAP Basic and Diluted Earnings 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 Financial 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.

    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 below and elimination of discrete tax adjustments.
    Reconciliation of Non-GAAP Gross Profit               
      Three-Month Period Ended  Nine-Month Period Ended 
      December 29,
    2023    		  September 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Gross Profit $133,828  $159,503  $142,594  $451,281  $392,990 
    Non-GAAP adjustments               
    Transaction-related costs  523   —   —   523   — 
    Purchased intangible amortization  3,648   273   589   4,323   1,240 
    Restructuring costs  166   —   —   166   — 
    Stock-based compensation*  1,073   946   1,156   4,625   3,112 
    Total Non-GAAP Adjustments $5,410  $1,219  $1,745  $9,637  $4,352 
                    
    Non-GAAP Gross Profit $139,238  $160,722  $144,339  $460,918  $397,342 
    Non-GAAP Gross Margin (% of net sales)  54.6%  58.3%  58.0%  57.0%  56.4%
    *Included in Stock-based compensation is $142 of restructuring costs. 
      


    Reconciliation of Non-GAAP Operating Expenses               
      Three-Month Period Ended  Nine-Month Period Ended 
      December 29,
    2023    		  September 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Operating Expenses $97,142  $86,588  $76,966  $270,934  $252,787 
                    
    Research and Development Expenses               
    GAAP Research and Development Expenses  44,396   43,428   39,593   130,799   109,017 
    Non-GAAP adjustments               
    Transaction-related costs  343   2   1   352   404 
    Restructuring costs  908   —   —   908   — 
    Stock-based compensation*  3,870   3,602   3,174   10,340   6,013 
    Non-GAAP Research and Development Expenses  39,275   39,824   36,418   119,199   102,600 
                    
    Selling, General and Administrative Expenses               
    GAAP Selling, General and Administrative Expenses  52,746   43,160   37,373   140,135   146,470 
    Non-GAAP adjustments               
    Transaction-related costs  9,543   1,804   35   14,419   1,695 
    Purchased intangible amortization  495   357   23   1,210   68 
    Restructuring costs  5,795   —   291   5,795   4,663 
    Stock-based compensation*  5,977   6,329   4,572   17,874   42,117 
    Other costs  283   100   —   383   — 
    Non-GAAP Selling, General and Administrative Expenses  30,653   34,570   32,452   100,454   97,927 
                    
    Change in fair value of contingent consideration  —   —   —   —   (2,700)
                    
    Total Non-GAAP Adjustments  27,214   12,194   8,096   51,281   52,260 
                    
    Non-GAAP Operating Expenses $69,928  $74,394  $68,870  $219,653  $200,527 
    *Included in Stock-based compensation is $341 of restructuring costs in Research and Development and $172 of restructuring costs in Selling, General and Administrative.
     


    Reconciliation of Non-GAAP Operating Income               
      Three-Month Period Ended  Nine-Month Period Ended 
      December 29,
    2023    		  September 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Operating Income $36,686  $72,915  $65,628  $180,347  $140,203 
                    
    Transaction-related costs  10,409   1,806   36   15,294   (601)
    Purchased intangible amortization  4,143   630   612   5,533   1,308 
    Restructuring costs  6,869   —   291   6,869   4,663 
    Stock-based compensation*  10,920   10,877   8,902   32,839   51,242 
    Other costs  283   100   —   383   — 
    Total Non-GAAP Adjustments $32,624  $13,413  $9,841  $60,918  $56,612 
                    
    Non-GAAP Operating Income $69,310  $86,328  $75,469  $241,265  $196,815 
    Non-GAAP Operating Margin (% of net sales)  27.2%  31.3%  30.3%  29.8%  27.9%
    *Included in Stock-based compensation is $655 of restructuring costs. 
                         


    Reconciliation of EBITDA and Adjusted EBITDA               
      Three-Month Period Ended  Nine-Month Period Ended 
      December 29,
    2023    		  September 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Net Income $33,402  $65,671  $64,551  $159,962  $125,482 
                    
    Interest expense  3,854   758   613   5,381   1,581 
    Interest income  (857)  (850)  (360)  (2,550)  (1,144)
    Income tax provision  2,969   7,400   7,540   17,584   17,943 
    Depreciation & amortization  20,227   15,145   12,580   49,645   36,705 
    EBITDA $59,595  $88,124  $84,924  $230,022  $180,567 
                    
    Transaction-related costs  10,409   1,806   36   15,294   (601)
    Restructuring costs  6,869   —   291   6,869   4,663 
    Stock-based compensation*  10,920   10,877   8,902   32,839   51,242 
    Other costs  (551)  1,301   (6,013)  5,339   (2,602)
    Adjusted EBITDA $87,242  $102,108  $88,140  $290,363  $233,269 
    Adjusted EBITDA Margin (% of net sales)  34.2%  37.1%  35.4%  35.9%  33.1%
    *Included in Stock-based compensation is $655 of restructuring costs.
     


    Reconciliation of Non-GAAP Profit before Tax               
      Three-Month Period Ended  Nine-Month Period Ended 
      December 29,
    2023    		  September 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Income before Income Taxes $36,371  $73,071  $72,091  $177,546  $143,425 
                    
    Transaction-related costs  10,409   1,806   36   15,294   (601)
    Transaction-related interest  162   —   —   162   — 
    Purchased intangible amortization  4,143   630   612   5,533   1,308 
    Restructuring costs  6,869   —   291   6,869   4,663 
    Stock-based compensation*  10,920   10,877   8,902   32,839   51,242 
    Other costs  (551)  1,301   (6,013)  5,339   (2,602)
    Total Non-GAAP Adjustments $31,952  $14,614  $3,828  $66,036  $54,010 
                    
    Non-GAAP Profit before Tax $68,323  $87,685  $75,919  $243,582  $197,435 
    *Included in Stock-based compensation is $655 of restructuring costs.
     


    Reconciliation of Non-GAAP Provision for Income Taxes               
      Three-Month Period Ended  Nine-Month Period Ended 
      December 29,
    2023    		  September 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Income Tax Provision $2,969  $7,400  $7,540  $17,584  $17,943 
    GAAP effective tax rate  8.2%  10.1%  10.5%  9.9%  12.5%
                    
    Tax effect of adjustments to GAAP results  3,748   2,554   (461)  10,128   3,776 
                    
    Non-GAAP Provision for Income Taxes $6,717  $9,954  $7,079  $27,712  $21,719 
    Non-GAAP effective tax rate  9.8%  11.4%  9.3%  11.4%  11.0%
                         


    Reconciliation of Non-GAAP Net Income               
      Three-Month Period Ended  Nine-Month Period Ended 
      December 29,
    2023    		  September 29,
    2023    		  December 23,
    2022    		  December 29,
    2023    		  December 23,
    2022    		 
      (Dollars in thousands)  (Dollars in thousands) 
    GAAP Net Income $33,402  $65,671  $64,551  $159,962  $125,482 
    GAAP Basic Earnings per Share $0.17  $0.34  $0.34  $0.83  $0.66 
    GAAP Diluted Earnings per Share $0.17  $0.34  $0.33  $0.82  $0.65 
                    
    Transaction-related costs  10,409   1,806   36   15,294   (601)
    Transaction-related interest  162   —   —   162   — 
    Purchased intangible amortization  4,143   630   612   5,533   1,308 
    Restructuring costs  6,869   —   291   6,869   4,663 
    Stock-based compensation*  10,920   10,877   8,902   32,839   51,242 
    Other costs  (551)  1,301   (6,013)  5,339   (2,602)
    Total Non-GAAP Adjustments  31,952   14,614   3,828   66,036   54,010 
    Tax effect of adjustments to GAAP results $(3,748) $(2,554) $461  $(10,128) $(3,776)
    Non-GAAP Net Income $61,606  $77,731  $68,840  $215,870  $175,716 
    Basic weighted average common shares  192,724,541   192,431,094   191,328,538   192,384,315   191,082,141 
    Diluted weighted average common shares  194,570,380   195,100,855   193,935,908   194,925,040   193,100,762 
    Non-GAAP Basic Earnings per Share $0.32  $0.40  $0.36  $1.12  $0.92 
    Non-GAAP Diluted Earnings per Share $0.32  $0.40  $0.35  $1.11  $0.91 
    *Included in Stock-based compensation is $655 of restructuring costs.
     

    Investor Contact:
    Jalene Hoover
    VP of Investor Relations & Corporate Communications
    +1 (512) 751-6526
    jhoover@allegromicro.com


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