Allegro MicroSystems, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Allegro Microsystems Q2 Fiscal 2022 Financial Results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask your question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to Katie Bly. Please go ahead.

Good morning, and thank you for joining us today for Allegra's second quarter results for fiscal year 2022. I'm joined today by Allegra's President and Chief Executive Officer, Robbie Digg, and Allegra's Chief Financial Officer, Paul Walsh. We will review our quarterly financial performance and provide a summary of our outlook. Our earnings released in the accompanying financial tables are available on the Investor Relations page of our website. The call is being webcasted, and a recording will be available on our IR page shortly. Please note that comments made during this conference call include forward-looking statements as defined by federal security laws. These forward-looking statements include projections and other statements about future events that are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties that could result to varying materially from our projections. Please refer to the earnings press release issued today and other documents filed by us with the SEC, including the risk factors discussed in detail in our most recent 10-K, filed on May 19, 2021. The company assumes no obligation to update any forward list information presented. The non-GAAP financial measures that are discussed today are not intended to replace or be a substitute for the presentation of a rigorous GAAP financial result and may be calculated differently than similar measures used by other companies. We're providing this supplemental information because it may enable investors to make meaningful comparisons to core operating results and more clearly highlight the results of our core ongoing operations. A reconciliation of GAAP to non-GAAP financial measures referenced during today's call can be found in our earnings press release, which has been posted to our IR page. I'll now turn the call over to Allegra's President and CEO, Ravi Vick. Ravi?

Thank you, Katie, and good morning, everyone. Record revenue and profitability in SQ2 reflects our alignment to multiple growth vectors and very strong franchises in magnetic sensors and power ICs, as well as in automotive and industrial. Revenue grew 3% sequentially to $193.6 million, exceeding our expectations due to favorable mix relative to our available inventory. As a result of structural improvements from our transformation, gross margin improved again, well ahead of our target model timeline. We experienced broad strength across the magnetic sensor and power IC products in an increasingly diverse set of applications and end customers. Magnetic sensor revenue was up nearly 50% year-over-year, achieving record highs due to growth across all product categories. Our current sensors in particular are experiencing tremendous market adoption. Power ICs were up 30% year-over-year, with motor control products achieving record revenue as customers adopt our leading embedded motion control solutions. Finally, design wins continue to be a key measure of our growth potential. Our design win revenue increased nearly 50% on a rolling four-quarter basis. Emerging growth markets continue to represent the majority of these new design wins, accelerating the company's transition to XEV, ADAS, Industry 4.0, and data center applications, to enable outsized revenue growth and high levels of profitability. As we'll discuss, recent COVID-related supply chain disruptions present what we expect will be a one-quarter pause in our sequential growth in Q3, but supply recovery is already underway and we expect a return to growth in Q4 and approximately 28% annual growth in fiscal 22. The strength of our franchises in power and mag and auto and industrial give us confidence in our ability to deliver a low to mid-teens annual revenue growth in fiscal 23 at nearly target model gross margins. Now, I'll turn the call over to Paul for more color on the financials. Paul?