Allegro MicroSystems, Inc.

Good morning and welcome to the Allegro Microsystems Third Quarter Fiscal 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised, today's conference is being recorded. I would now like to hand the conference over to Jillian Hoover, Vice President, Investor Relations and Corporate Communications. Please go ahead.

Thank you, Kevin. Good morning, and thank you for joining us today to discuss Allegro's third 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 fourth quarter outlook. We will follow our prepared remarks for the 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. A reconciliation 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 presentations 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 third quarter of fiscal 2025 and in our most recent periodic filings and other filings with the Securities and Exchange Commissions. 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 Nargawala. Vineet?

Thank you, Jolene, and good morning, and thank you for joining our third quarter fiscal year 2025 conference call. We delivered on our commitments with third quarter saves of $178 million and non-GAAP EPS of 7 cents, both above the midpoint of our guidance. Beyond that, we continue to see positive trends across a number of leading indicators in Q3. Increased in-quarter orders, which is an indication of lower channel inventory. Cancellations have largely abated, and bookings are the highest they've been in the past eight quarters, and up 50% year-over-year. In addition, we continue to make good progress on the localization of our supply chain in China. We have begun shipping from our local OSAT partners, and we expect volumes to expand throughout the calendar year. We continue to make progress reducing inventory in direct and distribution channels. And as we enter the 2025 calendar year, industry estimates project automotive production to be flat, and we are encouraged by the projections for continued double-digit growth in XCVs and ADAS adoption. Allegro's content is meaningfully higher in hybrids and BEVs, which enables us to grow even if there is no growth in auto production. In our industrial and other end markets, we are encouraged by increasing signs of activity, and we are cautiously optimistic that an easing monetary and regulatory environment could fuel a demand recovery later in the year. I will now discuss key product highlights and achievements in the quarter. Innovation with purpose is a core value and integral to serving our customers. One of the most powerful ways that we meet and exceed our customers' expectations is by addressing the design challenges through new product innovations. And we have doubled the number of new product introductions over the past two years. In the quarter, we further strengthened our magnetic sensing portfolio with a slew of new and innovative new products, including new inductive position sensors featuring integrated high accuracy and advanced diagnostics that perform consistently across a wide temperature range and excel in noisy environments. Our newest sensors are ideal for motor position sensing in demanding applications such as XCV traction motors, steering and braking systems, as well as robotics. Additionally, Our new micropower magnetic switches and latches are redefining position sensing by using 50% less power than existing solutions. These products open up new markets for battery-powered applications in IoT, home automation, and consumer applications. And earlier this month, we announced a fully integrated current sensor IC, offering the industry's fastest response time for protection of wide bandgap SICK and GAN devices. Our innovative packaging enables a product which is five times faster and 40% smaller than existing solutions. This offers unparalleled space savings and protection of expensive electronics in solar energy equipment, AI and cloud data servers, industrial machinery, and XEV powertrain systems. Our technology leadership also extends to power applications that leverage our automotive-grade technology. In the quarter, while at Electronica in Germany, we introduced a groundbreaking series of power products poised to redefine performance and efficiency across the landscape, including cutting-edge 48-volt motor drivers featuring a code-free industrial product and an automotive SOC solution designed to address the thermal management needs of hybrid electric vehicles and AI data servers. We were honored to receive a Best in Show award from Embedded Computing Design for the solution. Complementing these new motor drivers, we also introduced a 48-volt pre-regulator designed for superior EMI performance in dual-voltage hybrid electric vehicles. Our ever-expanding portfolio of 48-volt solutions positions us well to support the transition to 48-volt architectures in automotive and industrial markets. Our focus on innovation and the increasing velocity of new product introductions is further enabling design and momentum across our strategic focus areas. And this quarter, we continued our winning ways across key new opportunities. We secured multiple wins leveraging a power and sensing solutions with a top Chinese OEM. This included multi-part wins for steering, electrified powertrain, and in-cabin applications. Our power motor solutions secured multiple wins with customers in Taiwan, China, and Japan for data center cooling applications. Our high voltage isolated gate drivers continue to gain traction in the market, garnering multiple wins across many industrial applications, especially clean energy and automation. And finally, our TMR solutions continue to gain momentum securing wins in smart metering and medical applications. I will end by thanking our teams around the globe who are embodying our values while executing our strategies and going above and beyond to serve our customers. I'll now turn the call over to Derek to review the Q3 financial results and provide an outlook for the fourth quarter. Derek?