Allegro MicroSystems, Inc.

Good morning and welcome to the Allegro Microsystems second quarter fiscal 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to Jolene Hoover, Vice President of Investor Relations and Corporate Communications.

Thank you, Corey. Good morning, and thank you for joining us for today's call to discuss Allegro's second fiscal quarter 2025 results. I'm joined today by Allegro's President and Chief Executive Officer, Vineet Nagarwala, and Allegro's Chief Financial Officer, Derek D'Antilio. They will provide highlights of our business, review our quarterly financial performance, and share our third quarter outlook. We will follow our prepared remarks with a Q&A session. Our earnings release and prepared remarks include certain non-GAAP financial measures. The non-GAAP financial measures that are discussed today are not intended to replace or be a substitute for our GAAP financial results. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings release, which is available in the investor relations page of our website at www.alegro-micro.com. This call is also being webcast and a replay will be available in the events and presentation section of our IR page shortly. During the course of this conference call, we will make projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution that such statements are based on current expectations and assumptions as of today's date and, as a result, are subject to risks and uncertainties that could cause actual results to differ or events to differ materially from projections. Important factors that can affect our business, including factors that could cause actual results to differ from our forward-looking statements, are described in detail in our earnings release for the second quarter of fiscal 2025 and in our most recent periodic or other filings with the Securities and Exchange Commission. Our estimates, expectations, or other forward-looking statements may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, changes to assumptions, or other events that may occur, except as required by law. It is now my pleasure to turn the call over to Allegro's President and CEO, Vineet Nagarwala. Vineet?

Thank you, Jolene, and good morning, and thank you for joining our second quarter fiscal year 2025 conference call. We delivered results consistent with our guidance, despite a challenging macro environment. Q2 sales were $187 million with sequential growth in automotive and industrial and other end markets. Non-GAAP EPS was $0.08 at the high end of our outlook. We are laser focused on executing our new product roadmaps to bring innovative new solutions to our customers. In Q2, we announced two new XtremeSense TMR current sensors, which represent the first products launched since the company's acquisition of Crocus. These high bandwidth, high resolution TMR sensors streamline high power density designs and provide space and cost savings while improving energy efficiency. They're well suited for automotive powertrain, AI data center, electric vehicle charging infrastructure, and solar applications. And this focus on innovation is paying off as our solutions continue to build momentum across our strategic focus areas with important design wins. In Q2, we had a large design win with a leading Japanese OEM for a PHEV inverter using our current sensor solutions. Our XtremeSense portfolio won a major project for clean energy smart metering application in North America. Our high voltage isolated gate driver secured a win with a Chinese equipment manufacturer to test lithium batteries used in XEV and solar applications. And finally, we secured another large design win using our TMR technology for blood glucose monitoring. This expands the medical business we obtain through the Crocus acquisition, where we continue to gain traction. The diverse nature of our wins further highlights the resilience of our portfolio across vehicle architectures and between automotive and industrial markets. I now want to discuss what we're seeing in our end markets, starting with automotive. Over the past two months, I've had the opportunity to meet several of our key customers in China, Japan, Europe, and North America, and really get a sense for how things are on the ground, both in terms of the state of the market and our engagement with customers. Overall, I'm really encouraged by the continued global demand for a highly differentiated magnetic sensing and power semiconductor solutions across vehicle architectures, and the significant progress made in rebalancing inventory in the channel. Chinese OEMs are hitting full stride with mid-20% growth in XDB production, and a slew of new products and models at every price point. They're expanding their production outside China with announcements of new plants in Europe, South America, and Southeast Asia. Chinese XEVs are now 45% of total domestic production and expected to exceed 75% of domestic production by 2030. We recognized this momentum early on and responded by proactively moving more resources to this region and localizing production in China with our partners. I'm pleased to report that our first parts from a newly formed China supply chain will launch before the end of the year. I remain encouraged by the deep engagement of our teams with the China partners, including continued design and progress with customers like BYD and NEO as we collaborate on future solutions. With the inventory digestion largely behind us, we are seeing our China shipments return to normal ordering patterns, supporting a strong increase in second quarter sales. In Europe and North America, we're seeing continued progress from a design and activity standpoint and recognize that OEMs are still trying to get their investments and cost structures aligned to market needs. While we have made progress in inventory digestion, we expect continued near-term choppiness in auto patents from North America and European customers. Despite these near-term challenges, we are highly encouraged that auto OEMs remain committed to an electrified future and the adoption of more autonomous features. We are confident in our customers ability to navigate these challenges, and we are well positioned to support them with world leading magnetic sensing and power semiconductor solutions. Our customers in Japan and the rest of Asia continue to make steady progress in expanding their hybrid and battery electric solutions. In our industrial and other end market, we are seeing signs of increased activity after a prolonged inventory digestion period. We still expect demand to recover at some point in calendar year 2025, and we are encouraged by the signals we're seeing from our customers. Our third quarter sales outlook comprehends continued progress towards vehicle electrification, ongoing inventory rebalancing is reflected in the latest third-party estimates, and typical December quarter seasonality. While the macro continues to be uncertain, we remain focused on executing our strategies, accelerating our new product introductions, and serving our customers. We continue to invest for growth with the intent to extend our market leadership and deliver on our commitments to our teams, our customers, and our shareholders. We're encouraged by the progress made and believe the business is poised for acceleration. I want to thank our teams around the world for their continued hard work and dedication in focusing on what we can control, executing at the highest level, and serving our customers. I'll now turn the call over to Derek to review the Q2 financial results and provide our outlook for the third quarter. Derek?