Allegro MicroSystems, Inc. has recently released its 10-K report, providing a detailed overview of its financial performance and strategic initiatives. The company, headquartered in Manchester, New Hampshire, specializes in designing, developing, manufacturing, and marketing sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products cater primarily to the automotive and industrial markets and are sold to original equipment manufacturers and distributors through various channels. Allegro operates globally with 29 locations across four continents and boasts a portfolio of over 1,500 products, shipping approximately 1.5 billion units annually to more than 10,000 customers worldwide.
In its 10-K report, Allegro MicroSystems, Inc. discussed various initiatives aimed at improving its operating results during fiscal years 2024 and 2025. The company focused on leveraging fixed costs and operating margin improvements, with an emphasis on achieving manufacturing efficiencies through cost structure improvements and streamlining of processes. Additionally, Allegro completed a significant transaction in 2023, acquiring Crocus for $411.8 million in cash. To fund this acquisition, the company entered into a $250.0 million term loan facility and later refinanced it with a $400.0 million tranche of term loans in 2024. In the same year, Allegro initiated a realignment of resources associated with its photonics and advanced 3D imaging solutions business, resulting in impairment charges of $11.6 million.
Furthermore, the company executed a share repurchase agreement with Sanken, repurchasing 38,767,315 shares of its common stock in a privately negotiated transaction. This was followed by an Equity Offering, resulting in net proceeds of approximately $665.9 million. Allegro used the net proceeds to complete the share repurchase, retiring 28,750,000 shares in the first closing and 10,017,315 shares in the second closing. In connection with the share repurchase agreement, the company recognized a loss of $34.8 million due to the fair value of the forward repurchase contract.
Allegro also completed a transaction with Sanken, PSL, and PS Investment Aggregator, L.P., resulting in a net loss of $2.8 million related to the difference between the selling price per share and its carrying amount per share. The company further refinanced its loans in 2025, entering into a $375.0 million tranche of term loans to refinance all outstanding borrowings under the previous term loan facility and for general corporate purposes.
As a result of these announcements, the company's shares have moved -0.69% on the market, and are now trading at a price of $26.10. For more information, read the company's full 10-K submission here.
