Backlog & bookings: Bookings and backlog reached multi-quarter highs (CEO).
Design wins: ADAS (position sensors, motor drivers for EPS, steer-by-wire in NA/China/Europe); XEV (current sensor ICs for OBC, traction inverters); data center (fan driver ICs, current sensors, isolated gate driver ICs); robotics (up to 150 sensor ICs and 50 power ICs per advanced humanoid robot) (CEO).
"We continue to see positive momentum across the business, once again achieving growth in bookings and backlog to multi-quarter highs." (CEO)
"The rapid expansion of higher power AI servers continues to drive increased demand for our fan driver ICs." (CEO)
"Our customer engagements validated our high content opportunity in robots, including up to 150 Allegro sensor ICs, and 50 of our power ICs in advanced humanoid robots." (CEO)
"EPS increased by 15% sequentially and 114% year over year on sales increases of 729%, demonstrating the significant operating leverage in our business model." (CFO)
"We expect fourth quarter sales to be in the range of $230 to $240 million. The midpoint of this range equates to a 22% year over year increase." (CFO)
Topic: Auto revenue recovery vs. peers, share loss concerns, and OpEx trajectory
Key points:
Auto revenue still ~20% below peak; mgmt denies share loss, citing customer inventory build as cause.
eMobility SAM CAGR of 16% driven by automotive dollar content gains.
OpEx expected to be marginally down in June quarter vs. March, then grow at inflationary rate; March includes FICA/payroll tax step-up.
Mgmt stance: Bullish on auto recovery; no share loss, share gain story. OpEx disciplined with near-term step-down.
Q7 — Christopher Caso
Topic: Data center growth outlook and operating leverage in recovery
Key points:
Data center business expected to grow at CAGR north of 20% short-term; dollar content per rack from ~$150 today to $425 future, even with liquid cooling.
FY’26 (midpoint Q4 guide) sales growth >20% drives non-GAAP EPS more than doubling; gross margin improving 440 bps from trough four quarters ago.
Fixed cost base from $1.48B FY’24 revenue provides significant operating leverage.
Mgmt stance: Bullish on data center growth and operating leverage; disciplined OpEx reallocation.
Q8 — Vivek Arya
Topic: Data center % of sales, industrial trends, and gross margin roadmap
Key points:
Data center was 10% of total sales in December quarter (up from 8% in September); no specific March guide.
Industrial outside data center shows positive customer activity but more muted growth; 48V tech relevant for humanoid robots.
Gross margin improvement driven by leverage (440 bps over 12 months), factory efficiencies, variable contribution margin 60-65%, mix shift to higher-margin industrial parts, cost reductions (e.g., gold to copper), and ASP management.
Mgmt stance: Neutral-to-bullish on industrial; gross margin recovery led by volume leverage and cost actions.
Q9 — Joshua Buchalter
Topic: Current sensor portfolio (Hall vs. TMR) and capital allocation/debt
Key points:
Current sensor revenue predominantly Hall today; 10 MHz TMR sensor accelerating customer activity and share gains.
December quarter built ~$40M cash, ending with $163M; untapped $256M line of credit; term loan $285M at SOFR+1.75%.
Net leverage ratio slightly below 1x; will balance liquidity with debt paydown as accretive to EPS.
Mgmt stance: Bullish on TMR current sensor innovation; neutral on capital allocation—comfortable with leverage, will continue debt paydown.
Q10 — Vijay Rakesh
Topic: eMobility growth trajectory and robotics revenue outlook
Key points:
eMobility strength in ADAS and XEV; SAM 16% CAGR; no pull-in in December quarter.
Robotics: humanoid robot has 150 sensor sockets + up to 50 motor drivers; near-term tens of thousands of units, ramping to hundreds of thousands over years.
Revenue ramp expected 2-3 years out; many robotics customers are existing automotive customers, leveraging existing OpEx.
Mgmt stance: Bullish on eMobility and robotics long-term; prepared for ramp with existing products and customer relationships.
Q&A Batch (11-11 of 11)
Q11 — Joseph Moore
Topic: Pricing dynamics and robotics customer landscape
Key points:
For calendar year 2026, ASPs expected to see a low single-digit reduction, characterized as "very low single-digit reductions" due to longer-term contracts with built-in price declines.
Pricing environment in 2026 is more favorable than historical, attributed to tight supply and competitive dynamics.
Robotics customers include automotive players, major motor manufacturers, and large industrial companies, all exploring humanoid robots; ALGM sells motor drivers, position sensors, and current sensors to these customers.
Mgmt stance: Neutral on pricing (acknowledges unavoidable low single-digit declines but notes more favorable conditions than normal); bullish on robotics (high dollar content, broad customer base, securing design wins with potential winners).