Allegro MicroSystems, Inc.

Good morning and welcome to Allegro Microsystems' second quarter fiscal year 2026 earnings conference call. 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, Kathy. Good morning and thank you for joining us today to discuss Allegro's fiscal second quarter 2026 results. I'm joined today by Allegro's President and Chief Executive Officer, Mike Duke, and Allegro's Chief Financial Officer, Derek Dantilio. 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. 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.elegromicro.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 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 2026 and in our most recent periodic and other filings with the Securities and Exchange Commission. Our estimates, expectations, and 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, Mike Duke. Mike?

Thank you very much, Jolene, and good morning, and thank you all for joining our second quarter earnings conference call. We remain encouraged by the positive momentum we continue to see across the business, achieving multi-year highs in second quarter bookings and backlog, and delivering strong design-win activity in our strategic focus areas, particularly in e-mobility, and data center. This momentum has enabled us to deliver strong second quarter results with sales, gross margin, and EPS above the midpoint of our guidance ranges at $214 million, 49.6%, and 13 cents respectively. In the second quarter, we saw broad strength in our automotive sales with growth in e-mobility and other auto, Our automotive sensor business grew through increased adoption of our ICs and XCV powertrain systems. And motor driver IC sales also grew in electronic power steering systems in ADAS and in applications in other auto. In our industrial and other end markets, sales growth was led by data center, establishing a new quarterly record. Data center momentum was fueled by a broad server power architecture upgrade supporting next generation AI workloads as systems move toward higher voltage and power levels. As a result, the demand for our data center fan driver ICs continues to increase. And additionally, our market leading high speed current sensor ICs are ramping in data center power supply applications where they enable crucial efficiency and power density improvements. Looking ahead, we are building another growth vector in this market. Within the quarter, we sampled our new high voltage gate drivers for silicon carbide with market leaders in the data center power supply space. Collectively, this strong market pull is reflected in our design win activity, where data center continued to lead Q2 industrial design wins with revenue for many of these wins ramping within the next year. Shifting to automotive design wins, e-mobility continued to lead second quarter activity. We secured a multi-portfolio ADAS win for a steering system using our current sensors and motor drivers, the Chinese OEM. Additionally, our current sensors won multiple designs with an onboard charger and high voltage traction inverter systems with a North American XCV OEM. As I've said in the past, relentless innovation that drives performance leadership is a priority for Allegro. During the quarter, we released the industry's first 10 MHz TMR current sensor, a disruptive IC that further extends our competitive advantage. We believe our 10 MHz sensor, the highest bandwidth magnetic current sensor in the market by a significant margin, will help accelerate our sales growth. These ultra-fast sensors reduce the size of inductors and other components in high voltage power systems. Within the quarter, I also traveled to China, where I spent time with our teams, our customers, and our suppliers. This time on the road reinforced my excitement about our opportunity and positioning in this important geography. Our sales to China have grown every quarter since Q1 FY25 when we launched a strategy to quickly correct an over-inventory situation. Today, China inventory levels are lean, design when activity remains strong, and we have no indication of any material pull-in activity from our customers in response to tariffs. We continue to navigate geopolitical challenges. Therefore, it was encouraging to see China lead our second quarter automotive design win activity for Allegro led by ADAS and XED applications. While in China, I was also pleased to confirm new design ins and wins for our sensor ICs in nascent quadruped and humanoid robotics programs. In summary, we continue to execute on our strategic priorities. We are seeing positive momentum across the business, especially in auto and data center markets. And recent design wins confirm our increasing dollar content opportunity in high growth auto, data center, and robotics applications. I'll now turn the call over to Derek to review the Q2 2026 financial results and provide our outlook for the third quarter.