Allegro Microsystems sales jump 26% on data-center demand
The sensor-chip supplier reported record data-center revenue at 14% of total sales.
Allegro Microsystems (ALGM) posted a 26% year-over-year increase in net sales, capping a fiscal year in which industrial and data-center demand outpaced a cooling automotive market.
The sensor-chip supplier’s fourth-quarter results marked the third straight quarter of accelerating top-line growth, even as its largest segment decelerated. Revenue reached $243.2 million, up 6.1% sequentially, while non-GAAP earnings rose to $0.17 a share from $0.06 a year earlier.
Sales growth was broad-based: automotive revenue climbed 18% to $163.9 million, but the segment’s sequential decline of 0.4% contrasted with a 5.6% gain in the prior quarter. Industrial and other revenue surged 49% to $79.3 million, accelerating from 31% growth in the third quarter and 23% in the second.
The company said data-center sales hit a record 14% of total revenue, up from prior quarters where the business was cited as a growth driver but not quantified. Non-GAAP gross margin expanded to 50.0%, the third consecutive quarterly improvement, while adjusted EBITDA margin reached 20.4%, continuing a four-quarter upward trend.
Guidance for the first quarter of fiscal 2027 calls for revenue of $245 million to $255 million, implying 23% year-over-year growth at the midpoint. Non-GAAP gross margin is expected to range from 49% to 51%, unchanged from the prior quarter’s guidance.
Cash and cash equivalents rose to $168.8 million from $155.2 million in the prior quarter, and inventories declined to $181.8 million, reversing a trend of rising stockpiles. Long-term debt fell to $285.7 million, reflecting a repricing that cut annualized interest expense by $700,000 in the third quarter.