Allegro MicroSystems reports record quarterly growth
But Manchester company warns of supply chain constraints
Allegro MicroSystems’ magnetic sensors are used in electric vehicles, among other applications.
A year after its initial public offering, Allegro MicroSsystems says that the record growth it experienced in the last quarter is slowing down due to supply chain issues, but it expects those issues to be straightened out by the end of its fiscal year.
The Manchester-based manufacturer of magnetic sensors and power semiconductors reported $193.6 million in revenue in the second quarter of 2022 fiscal year, which ended Sept. 24. That’s a 42 percent increase. The company also reported $33.2 million in net income, more than triple the same quarter last year, or 17 cents per share.
Allegro went public last Nov 2. This year, on Nov. 1, the company announced a secondary stock offering of 7 million shares as some of its private equity owners cash in, with an option to sell off another million shares. The original IPO opened at about $18 a share. Now shares are selling for nearly $32.
The automotive industry accounts for nearly two-thirds of the company’s revenue, and while that industry has bounced back from the Covid doldrums, the real growth has been in “feature-rich” vehicles, since the company’s magnetic sensors help guide autonomous vehicles and its analog power integrated circuits are used for electric vehicles.
Both products are used for industrial applications too, and those sales were up nearly two thirds over last year.
About two-thirds of the company’s total sales went to Asia, with some $37 million sold to a Japanese subsidiary of Sanken Electric Co. Ltd. A lot of Allegro’s manufacturing is in Asia as well, though it is closing its Thailand facility to consolidate operations in the Philippines.
Despite this explosive growth and a record backlog, the company said it expects flat revenue the next time it reports, due to supply chain constraints.
