Allegro MicroSystems, Inc.

Grow Microsystems fourth quarter and full fiscal year 2025 earnings conference call. 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 a question during the session, you will need to press star 1-1 on your telephone. You will then wait for hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jalene Hoover, Vice President of Investor Relations and Corporate Communications.

Thank you, Brianna. Good morning, and thank you for joining us today to discuss Allegro's fiscal fourth quarter and full fiscal year 2025 results. I'm joined today by Allegro's President and Chief Executive Officer, Mike Duke, and Allegro's Chief Financial Officer, Derek D'Antilio. They will provide highlights of our business, review our quarterly and annual financial performance, and share our first 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 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 for 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 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 fourth quarter of fiscal 2025, and in the most recent periodic and 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 Allegra's President and CEO, Mike Duke. Mike?

Thank you very much, Delene, and good morning, and thank you all for joining our fourth quarter and full fiscal year 2025 conference call. And let me start by saying that it is truly an honor and a privilege to assume the role of president and CEO at Allegro. My journey started 27 years ago when I joined Allegro as a chip designer working on cutting edge technologies, which we then turned into disruptive product lines. I then expanded my focus into business leadership, eventually running all three of our business units as SDP of technology and products. And in this role, I led the growth of company revenue and gross margin. Following our IPO, I became Allegro's first ever chief technology officer, responsible for technology development, corporate strategy, and M&A. Along the way, I also led our global operations teams, including oversight of our internal factory and quality teams, while also working closely with our OSAT and BAM partners. Collectively, I believe the breadth and depth of my experience provides a rich opportunity to accelerate and implement product, innovation, and efficiency initiatives that will drive sales growth and gross margin improvements for Allegro. Recently, as you might imagine, I've been asked about my strategic priorities as CEO, and at the highest level, here is my response. I will work with our teams to accelerate new product development, and Unlock SAM expansion, to secure impactful design wins with leading customers in growth markets, and to leverage my innovation expertise to drive a meaningful impact on both top and bottom line growth. More specifically, relentless innovation that drives leadership in new and existing markets and applications will be a top priority. Innovation with purpose is central to everything we do at Allegro, And through innovation, we will strengthen our competitive advantages and drive double-digit sales growth in automotive and industrial and markets. During fiscal 2025, we demonstrated accelerated innovation by releasing 50% more products compared to our IPO year. And these innovative new ICs are truly important to our journey as they will positively impact gross margins and help fuel our multi-billion dollar SAM expansion initiatives as we target a $12 billion market opportunity. It's also a priority to extend our leading magnetic sensing market position with an estimated 30% CAGR through 2030 TMR magnetic sensors present a unique opportunity for continued share gains for Allegro. And we've recently demonstrated an ability to drive share gains through our XtremeSense TMR technology. In fact, in Q4, we secured new TMR wins in the biomedical market and a new automotive win in an XCV thermal management application. We also released new XtremeSense TMR current sensors in the quarter. These ICs deliver high precision current measurements and 4x noise reduction compared to competing hall solutions. For these and many more reasons, we are deeply excited about the future of TMR. Moving on to power, we will also expand our leadership in select power applications. For example, we are introducing a new family of high voltage isolated gate driver ICs to the market These gate drivers represent a nearly $3 billion SAM expansion opportunity for Allegro. It can significantly augment our long-term automotive and data center growth rates. In FY25, we launched initial drivers enabling GAN solutions and also began sampling our silicon carbide isolated gate drivers for market-leading customers. And in Q4, we were pleased to secure our first automotive isolated gate driver win in an exciting new XCV charging program in China.