Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2023 Results


-- Fourth Quarter Sales increased by 35% and GAAP Earnings Per Share (EPS) increased by 138% Year-over-Year --

-- Annual Sales increased by 27% and GAAP EPS increased by 56% Year-over-Year --

-- Continued Growth in Automotive and Industrial Drove Record Sales for the
Fourth Quarter & Full Year --

MANCHESTER, N.H., May 10, 2023 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq:ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its fourth quarter and fiscal year 2023 which ended March 31, 2023.

“We delivered a strong finish to fiscal year 2023, including record fourth quarter sales of $269 million, up 35% year-over-year. We also achieved record non-GAAP diluted earnings per share of $0.37, an increase of more than 75% year-over-year,” said Vineet Nargolwala, President and CEO of Allegro MicroSystems. “Solid fourth quarter results contributed to record fiscal year 2023 sales of $974 million, up 27% year-over-year. We saw significantly increased design win momentum in fiscal year 2023 with approximately two-thirds of our wins coming from strategic growth areas including e-Mobility and Industrial. E-Mobility increased to 43% of fiscal year 2023 Automotive sales, up from 36% in fiscal year 2022. The results in the fourth quarter and throughout the past year demonstrate further execution of our strategy.”

Fourth Quarter and Full Fiscal Year 2023 Financial Highlights:

In thousands, except per share dataQuarter Year
 Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22
Net Sales         
Automotive$182,376  $168,055  $141,213  $657,479  $531,564 
Industrial 57,990   50,399   34,654   196,705   133,187 
Other 29,079   30,335   24,426   119,469   103,923 
Total net sales$269,445  $248,789  $200,293  $973,653  $768,674 
GAAP Financial Measures         
Gross margin % 56.8%  57.3%  54.7%  56.1%  53.0%
Operating margin % 23.4%  26.4%  15.1%  20.8%  17.8%
Diluted EPS$0.32  $0.33  $0.13  $0.97  $0.62 
Non-GAAP Financial Measures         
Gross margin % 57.8%  58.0%  55.6%  56.8%  54.1%
Operating margin % 30.2%  30.3%  23.2%  28.6%  23.2%
Diluted EPS$0.37  $0.35  $0.21  $1.28  $0.78 

Business Outlook

For the first quarter ending June 30, 2023, the Company expects total sales to be in the range of $270 million to $280 million. The company also estimates the following results on a non-GAAP basis:

  • Gross margin is expected to be approximately 56%
  • Operating expenses are anticipated to be between 26% and 27% of sales
  • Earnings per diluted share are expected to be in the range of $0.35 to $0.39

Allegro has not provided a reconciliation of its first fiscal quarter outlook for non-GAAP gross margin, non-GAAP operating expenses and non-GAAP earnings per diluted share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking GAAP measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, May 11, 2023 at 8:30 a.m. Eastern time. Vineet Nargolwala, President and Chief Executive Officer, and Derek D’Antilio, Chief Financial Officer, will discuss Allegro’s business and financial results.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and green energy applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance for our first fiscal quarter ending June 30, 2023. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “target,” “mission,” “may,” “will,” “would,” “project,” “predict,” “contemplate,” “potential,” or the negative thereof and similar words and expressions.

Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to: downturns or volatility in general economic conditions, including as a result of the COVID-19 pandemic, particularly in the automotive market; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party wafer fabrication facilities and suppliers of other materials; our failure to adjust purchase commitments, supply chain volume and inventory management based on changing market conditions or customer demand; shifts in our product mix or customer mix, which could negatively impact our gross margin; the cyclical nature of the analog semiconductor industry; our ability to compensate for decreases in average selling prices of our products and increases in input costs; increases in inflation rates or sustained periods of inflation in the markets in which we operate; any disruptions at our primary third-party wafer fabrication facilities; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication semiconductor facilities or in the final assembly and test of our products; our ability to fully realize the benefits of past and potential future initiatives designed to improve our competitiveness, growth and profitability; our ability to accurately predict our quarterly net sales and operating results; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; COVID-19 induced lock-downs and suppression on our supply chain and customer demand; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of tariffs and export restrictions; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks related to governmental regulation and other legal obligations, including privacy, data protection, information security, consumer protection, environmental and occupational health and safety, anti-corruption and anti-bribery, and trade controls; the volatility of currency exchange rates; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or those of our third-party service providers; our principal stockholders have substantial control over us; the inapplicability of the “corporate opportunity” doctrine to any director or stockholder who is not employed by us; the dilutive impact on the price of our shares upon future issuance by us or future sales by our stockholders; our lack of intent to declare or pay dividends for the foreseeable future; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; the exclusive forum provision in our Certificate of Incorporation for disputes with stockholders; our inability to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on May 18, 2022, as amended by Amendment No. 1 on Form 10-K/A filed with the SEC on August 29, 2022, as any such factors may be updated or supplemented from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors Relations page of our website at investors.allegromicro.com.

All forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

ALLEGRO MICROSYSTEMS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)

 Three-Month Period Ended Fiscal Year Ended
 March 31,
2023
 March 25,
2022
 March 31,
2023
 March 25,
 (Unaudited) (Unaudited) (Unaudited) 2022
Net sales$240,534  $163,559  $812,890  $619,861 
Net sales to related party 28,911   36,734   160,763   148,813 
Total net sales 269,445   200,293   973,653   768,674 
Cost of goods sold 100,585   72,044   348,390   286,855 
Cost of goods sold to related party 15,771   18,646   79,184   74,359 
Gross profit 153,089   109,603   546,079   407,460 
Operating expenses:       
Research and development 41,833   32,432   150,850   121,873 
Selling, general and administrative 48,252   46,822   194,722   150,937 
Change in fair value of contingent consideration (100)  100   (2,800)  (2,000)
Total operating expenses 89,985   79,354   342,772   270,810 
Operating income 63,104   30,249   203,307   136,650 
Other income (expense):       
Interest expense (755)  (418)  (2,336)  (2,499)
Interest income 580   1,125   1,724   1,442 
Foreign currency transaction gain (loss) (1,617)  (513)  980   (568)
(Loss) income in earnings of equity investment (703)  215   (406)  1,007 
Unrealized gains (losses) on marketable securities 7,476   (760)  7,471   3,722 
Other, net (164)  258   606   992 
Income before income taxes 67,921   30,156   211,346   140,746 
Income tax provision 5,909   4,504   23,852   21,191 
Net income 62,012   25,652   187,494   119,555 
Net income attributable to non-controlling interests 35   36   137   148 
Net income attributable to Allegro MicroSystems, Inc.$61,977  $25,616  $187,357  $119,407 
Net income attributable to Allegro MicroSystems, Inc. per share:       
Basic$0.32  $0.13  $0.98  $0.63 
Diluted$0.32  $0.13  $0.97  $0.62 
Weighted average shares outstanding:       
Basic 191,519,850   189,997,738   191,197,452   189,748,427 
Diluted 194,993,241   192,125,252   193,688,102   191,811,205 

Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited consolidated statements of operations:

 Three-Month Period Ended Change Fiscal Year Ended Change
 March 31,
2023
 March 25,
2022
 Amount % March 31,
2023
 March 25,
2022
 Amount %
  
 (Dollars in thousands)
Automotive$182,376 $141,213 $41,163 29.1% $657,479 $531,564 $125,915 23.7%
Industrial 57,990  34,654  23,336 67.3%  196,705  133,187  63,518 47.7%
Other 29,079  24,426  4,653 19.0%  119,469  103,923  15,546 15.0%
Total net sales 269,445  200,293  69,152 34.5%  973,653  768,674  204,979 26.7%


ALLEGRO MICROSYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
 March 31,
2023
 March 25,
 (Unaudited) 2022
Assets   
Current assets:   
Cash and cash equivalents$351,576  $282,383 
Restricted cash 7,129   7,416 
Trade accounts receivable, net of provision for expected credit losses 111,290   87,359 
Trade and other accounts receivable due from related party 13,494   27,360 
Accounts receivable - other 1,943   4,144 
Inventories 151,301   86,160 
Prepaid expenses and other current assets 25,346   14,995 
Current portion of related party note receivable 3,750   1,875 
Total current assets 665,829   511,692 
Property, plant and equipment, net 263,099   210,028 
Operating lease right-of-use assets 16,866   16,049 
Deferred income tax assets 50,359   17,967 
Goodwill 27,691   20,009 
Intangible assets, net 52,378   35,970 
Related party note receivable, less current portion 8,438   5,625 
Equity investment in related party 27,265   27,671 
Other assets, net 69,230   47,609 
Total assets$1,181,155  $892,620 
Liabilities, Non-Controlling Interests and Stockholders' Equity   
Current liabilities:   
Trade accounts payable$56,256  $29,836 
Amounts due to related parties 9,682   5,222 
Accrued expenses and other current liabilities 94,894   65,459 
Current portion of operating lease liabilities 4,493   3,706 
Total current liabilities 165,325   104,223 
Obligations due under Senior Secured Credit Facilities 25,000   25,000 
Operating lease liabilities, less current portion 13,048   12,748 
Other long-term liabilities 10,967   15,286 
Total liabilities 214,340   157,257 
Commitments and contingencies   
Stockholders' Equity:   
Preferred Stock, $0.01 par value; 20,000,000 shares authorized, no shares issued or outstanding at March 31, 2023 and March 25, 2022     
Common stock, $0.01 par value; 1,000,000,000 shares authorized, 191,754,292 shares issued and outstanding at March 31, 2023; 1,000,000,000 shares authorized, 190,473,595 issued and outstanding at March 25, 2022 1,918   1,905 
Additional paid-in capital 674,179   627,792 
Retained earnings 310,315   122,958 
Accumulated other comprehensive loss (20,784)  (18,448)
Equity attributable to Allegro MicroSystems, Inc. 965,628   734,207 
Non-controlling interests 1,187   1,156 
Total stockholders' equity 966,815   735,363 
Total liabilities, non-controlling interests and stockholders' equity$1,181,155  $892,620 

ALLEGRO MICROSYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 Fiscal Year Ended
 March 31,
2023
 March 25,
 (Unaudited) 2022
CASH FLOWS FROM OPERATING ACTIVITIES:   
Net income$187,494  $119,555 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization 50,808   48,527 
Amortization of deferred financing costs 99   101 
Deferred income taxes (40,116)  7,498 
Stock-based compensation 61,798   33,548 
Loss (gain) on disposal of assets 285   (349)
Change in fair value of contingent consideration (2,800)  (2,000)
Provisions for inventory and receivables reserves (1,438)  6,297 
Unrealized gains on marketable securities (7,471)  (3,722)
Changes in operating assets and liabilities:   
Trade accounts receivable (12,484)  (18,347)
Accounts payable (receivable) - other 2,226   (2,668)
Inventories (75,150)  (4,471)
Prepaid expenses and other assets (23,263)  (19,450)
Trade accounts payable 11,958   (4,348)
Due to/from related parties 18,326   (659)
Accrued expenses and other current and long-term liabilities 22,934   (3,383)
Net cash provided by operating activities 193,206   156,129 
CASH FLOWS FROM INVESTING ACTIVITIES:   
Purchases of property, plant and equipment (79,775)  (69,941)
Acquisition of business, net of cash acquired (19,921)  (14,549)
Proceeds from sales of property, plant and equipment    27,408 
Investments in marketable securities    (9,189)
Net cash used in investing activities (99,696)  (66,271)
CASH FLOWS FROM FINANCING ACTIVITIES:   
Loans made to related party (7,500)  (7,500)
Receipts on related party notes receivable 2,812    
Proceeds from issuance of common stock under equity award and purchase plans less payments for taxes related to net share settlement of equity awards (15,268)  2,193 
Dividends paid to non-controlling interest (42)   
Net cash used in by financing activities (19,998)  (5,307)
Effect of exchange rate changes on Cash and cash equivalents and Restricted cash (4,606)  1,373 
Net increase in Cash and cash equivalents and Restricted cash 68,906   85,924 
Cash and cash equivalents and Restricted cash at beginning of period 289,799   203,875 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD:$358,705  $289,799 
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:   
Cash and cash equivalents at beginning of period$282,383  $197,214 
Restricted cash at beginning of period 7,416   6,661 
Cash and cash equivalents and Restricted cash at beginning of period$289,799  $203,875 
Cash and cash equivalents at end of period 351,576   282,383 
Restricted cash at end of period 7,129   7,416 
Cash and cash equivalents and Restricted cash at end of period$358,705  $289,799 

Non-GAAP Financial Measures

In addition to the measures presented in our consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, non-GAAP Profit before Tax, non-GAAP Provision for Income Tax, non-GAAP Net Income, non-GAAP Net Income per Share, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Provision for Income Tax, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Provision for Income Taxes across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These non-GAAP measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related party activities and other non-operational costs such as the impact of COVID 19.

Non-GAAP Provision for Income Tax

In calculating non-GAAP Provision for Income Tax, we have added back the following to GAAP Income Tax Provision:

  • Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit Before Tax described above and elimination of discrete tax adjustments.
  Three-Month Period Ended Fiscal Year Ended
  March 31,
2023
 December 23,
2022
 March 25,
2022
 March 31,
2023
 March 25,
2022
  (Dollars in thousands)
Reconciliation of Non-GAAP Gross Profit          
           
GAAP Gross Profit $153,089  $142,594  $109,603  $546,079  $407,460 
           
Voxtel inventory impairment              3,106 
Stock-based compensation  1,978   1,156   1,184   5,090   3,176 
AMTC Facility consolidation one-time costs              144 
Amortization of acquisition-related intangible assets  627   589   273   1,867   1,092 
COVID-19 related expenses        296      1,092 
Total Non-GAAP Adjustments $2,605  $1,745  $1,753  $6,957  $8,610 
           
Non-GAAP Gross Profit $155,694  $144,339  $111,356  $553,036  $416,070 
Non-GAAP Gross Margin  57.8%  58.0%  55.6%  56.8%  54.1%


  Three-Month Period Ended Fiscal Year Ended
  March 31,
2023
 December 23,
2022
 March 25,
2022
 March 31,
2023
 March 25,
2022
   
  (Dollars in thousands)
Reconciliation of Non-GAAP Operating Expenses          
           
GAAP Operating Expenses $89,985  $76,966 $79,354 $342,772  $270,810 
           
Research and Development Expenses          
GAAP Research and Development Expenses  41,833   39,593  32,432  150,850   121,873 
Stock-based compensation  3,483   3,174  1,119  9,496   3,933 
AMTC Facility consolidation one-time costs            2 
COVID-19 related expenses       3     23 
Transaction fees     1  5  404   5 
Severance  72       72    
Non-GAAP Research and Development Expenses  38,278   36,418  31,305  140,878   117,910 
           
Selling, General and Administrative Expenses          
GAAP Selling, General and Administrative Expenses  48,252   37,373  46,822  194,722   150,937 
Stock-based compensation  5,095   4,572  12,598  47,212   26,439 
AMTC Facility consolidation one-time costs  124   291  74  601   657 
Amortization of acquisition-related intangible assets  22   23  22  90   90 
COVID-19 related expenses       215     1,503 
Indirect transaction tax  944       944    
Transaction fees  644   35  384  2,339   1,498 
Sanken agreement termination fee  5,000       5,000    
Severance  368       4,554   746 
Non-GAAP Selling, General and Administrative Expenses  36,055   32,452  33,529  133,982   120,004 
           
Change in fair value of contingent consideration  (100)    100  (2,800)  (2,000)
           
Total Non-GAAP Adjustments  15,652   8,096  14,520  67,912   32,896 
           
Non-GAAP Operating Expenses $74,333  $68,870 $64,834 $274,860  $237,914 


  Three-Month Period Ended Fiscal Year Ended
  March 31,
2023
 December 23,
2022
 March 25,
2022
 March 31,
2023
 March 25,
2022
   
  (Dollars in thousands)
Reconciliation of Non-GAAP Operating Income          
           
GAAP Operating Income $63,104  $65,628  $30,249  $203,307  $136,650 
           
Voxtel inventory impairment              3,106 
Stock-based compensation  10,556   8,902   14,901   61,798   33,548 
AMTC Facility consolidation one-time costs  124   291   74   601   803 
Amortization of acquisition-related intangible assets  649   612   295   1,957   1,182 
COVID-19 related expenses        514      2,618 
Change in fair value of contingent consideration  (100)     100   (2,800)  (2,000)
Indirect transaction tax  944         944    
Transaction fees  644   36   389   2,743   1,503 
Sanken agreement termination fee  5,000         5,000    
Severance  440         4,626   746 
Total Non-GAAP Adjustments $18,257  $9,841  $16,273  $74,869  $41,506 
           
Non-GAAP Operating Income $81,361  $75,469  $46,522  $278,176  $178,156 
Non-GAAP Operating Margin (% of net sales)  30.2%  30.3%  23.2%  28.6%  23.2%


  Three-Month Period Ended Fiscal Year Ended
  March 31,
2023
 December 23,
2022
 March 25,
2022
 March 31,
2023
 March 25,
2022
   
  (Dollars in thousands)
Reconciliation of EBITDA and Adjusted EBITDA          
           
GAAP Net Income $62,012  $64,551  $25,652  $187,494  $119,555 
           
Interest expense  755   613   418   2,336   2,499 
Interest income  (580)  (360)  (1,125)  (1,724)  (1,442)
Income tax provision  5,909   7,540   4,504   23,852   21,191 
Depreciation & amortization  14,103   12,580   12,006   50,808   48,527 
EBITDA $82,199  $84,924  $41,455  $262,766  $190,330 
           
Non-core (gain) loss on sale of equipment  (2)  37   1   285   (349)
Voxtel inventory impairment              3,106 
Foreign currency translation loss (gain)  1,617   (407)  513   (980)  568 
(Loss) income in earnings of equity investment  703   (2,190)  (215)  406   (1,007)
Unrealized (gains) losses on investments  (7,476)  (3,453)  760   (7,471)  (3,722)
Stock-based compensation  10,556   8,902   14,901   61,798   33,548 
AMTC Facility consolidation one-time costs  124   291   74   601   803 
COVID-19 related expenses        514      2,618 
Change in fair value of contingent consideration  (100)     100   (2,800)  (2,000)
Indirect transaction tax  944         944    
Transaction fees  644   36   389   2,743   1,503 
Sanken agreement termination fee  5,000         5,000    
Severance  440         4,626   746 
Adjusted EBITDA $94,649  $88,140  $58,492  $327,918  $226,144 
Adjusted EBITDA Margin (% of net sales)  35.1%  35.4%  29.2%  33.7%  29.4%


  Three-Month Period Ended Fiscal Year Ended
  March 31,
2023
 December 23,
2022
 March 25,
2022
 March 31,
2023
 March 25,
2022
   
  (Dollars in thousands)
Reconciliation of Non-GAAP Profit before Tax          
           
GAAP Income before Income Taxes $67,921  $72,091  $30,156  $211,346  $140,746 
           
Non-core (gain) loss on sale of equipment  (2)  37   1   285   (349)
Voxtel inventory impairment              3,106 
Foreign currency translation loss (gain)  1,617   (407)  513   (980)  568 
(Loss) income in earnings of equity investment  703   (2,190)  (215)  406   (1,007)
Unrealized (gains) losses on investments  (7,476)  (3,453)  760   (7,471)  (3,722)
Stock-based compensation  10,556   8,902   14,901   61,798   33,548 
AMTC Facility consolidation one-time costs  124   291   74   601   803 
Amortization of acquisition-related intangible assets  649   612   295   1,957   1,182 
COVID-19 related expenses        514      2,618 
Change in fair value of contingent consideration  (100)     100   (2,800)  (2,000)
Indirect transaction tax  944         944    
Transaction fees  644   36   389   2,743   1,503 
Sanken agreement termination fee  5,000         5,000    
Severance  440         4,626   746 
Total Non-GAAP Adjustments $13,099  $3,828  $17,332  $67,109  $36,996 
           
Non-GAAP Profit before Tax $81,020  $75,919  $47,488  $278,455  $177,742 


  Three-Month Period Ended Fiscal Year Ended
  March 31,
2023
 December 23,
2022
 March 25,
2022
 March 31,
2023
 March 25,
2022
   
  (Dollars in thousands)
Reconciliation of Non-GAAP Provision for Income Taxes          
           
GAAP Income Tax Provision $5,909  $7,540  $4,504  $23,852  $21,191 
GAAP effective tax rate  8.7%  10.5%  14.9%  11.3%  15.1%
           
Tax effect of adjustments to GAAP results  3,509   (461)  2,817   7,285   6,415 
           
Non-GAAP Provision for Income Taxes $9,418  $7,079  $7,321  $31,137  $27,606 
Non-GAAP effective tax rate  11.6%  9.3%  15.4%  11.2%  15.5%


  Three-Month Period Ended Fiscal Year Ended
  March 31,
2023
 December 23,
2022
 March 25,
2022
 March 31,
2023
 March 25,
2022
   
  (Dollars in thousands)
Reconciliation of Non-GAAP Net Income          
           
GAAP Net Income $62,012  $64,551  $25,652  $187,494  $119,555 
GAAP Basic Earnings per Share $0.32  $0.34  $0.14  $0.98  $0.63 
GAAP Diluted Earnings per Share $0.32  $0.33  $0.13  $0.97  $0.62 
           
Non-core (gain) loss on sale of equipment  (2)  37   1   285   (349)
Voxtel inventory impairment              3,106 
Foreign currency translation loss (gain)  1,617   (407)  513   (980)  568 
(Loss) income in earnings of equity investment  703   (2,190)  (215)  406   (1,007)
Unrealized (gains) losses on investments  (7,476)  (3,453)  760   (7,471)  (3,722)
Stock-based compensation  10,556   8,902   14,901   61,798   33,548 
AMTC Facility consolidation one-time costs  124   291   74   601   803 
Amortization of acquisition-related intangible assets  649   612   295   1,957   1,182 
COVID-19 related expenses        514      2,618 
Change in fair value of contingent consideration  (100)     100   (2,800)  (2,000)
Indirect transaction tax  944         944    
Transaction fees  644   36   389   2,743   1,503 
Sanken agreement termination fee  5,000         5,000    
Severance  440         4,626   746 
Tax effect of adjustments to GAAP results  (3,509)  461   (2,817)  (7,285)  (6,415)
           
Non-GAAP Net Income $71,602  $68,840  $40,167  $247,318  $150,136 
Basic weighted average common shares  191,519,850   191,328,538   189,997,738   191,197,452   189,748,427 
Diluted weighted average common shares  194,993,241   193,935,908   192,125,252   193,688,102   191,811,205 
Non-GAAP Basic Earnings per Share $0.37  $0.36  $0.21  $1.29  $0.79 
Non-GAAP Diluted Earnings per Share $0.37  $0.35  $0.21  $1.28  $0.78 

Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
jhoover@allegromicro.com