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 data	Quarter												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

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+1 (512) 751-6526

[email protected]