Allegro Microsystems Inc at Nasdaq London Investor Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : All right. Yeah. Maybe you could touch on the nearer-term environment. You had guided December quarter to 5% up quarter-on-quarter, better than seasonal. Can you talk about the drivers of that and kind of generally what you're seeing in the market these days?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Great. And you mentioned this kind of late eighth inning of the inventory burn. You've got revenues that are still significantly below the prior peak. What gives you the confidence that we're that close to the end of this? And where do you think we sit relative to consumption?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : It's interesting to me when we saw this kind of next period disruption which was a pretty short-term effect, but people went line down pretty quickly. And I feel like there has to be an indication there that there's just not a whole lot of inventory. And like I'm a little surprised given the magnitude of the shortages we saw just a couple of years ago that you alluded to that people would want inventory that lean. Where do you think we are in that? And is there still a memory of that shortage? And can it get triggered by something like that, that sort of changes base?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Yeah. Your pattern in autos has been maybe a little bit different than others where, as you said, you took -- you had kind of a harsher correction and then your recovery has been a little bit more steady and strong coming out of it. Is any particular rationale that any syncratic differences for Allegro that sort of caused it that way or just the way you managed it?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Maybe you could give us a little color on -- you've talked about your content per internal combustion and per EV. Can you just give us an update there and what the drivers are of that?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Great. That's helpful. And I guess what are you seeing in the pace of ADAS innovation? And are you -- does it matter if we're talking about Level 2, Level 3, Level 4? Is there -- I assume there's more content in autonomous, but it seems like you have quite a bit of content in Level 2 as well?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Great. Thank you. And maybe you could talk a little bit about regional trends, both from the standpoint of the demand picture by region. Is there any difference there? And then specific to China and some of the innovations we're seeing out of China, how well are you positioned?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Interesting. Okay, thank you. Maybe we pivot to industrial. Can you talk about what you're seeing in the industrial market maybe outside of the data center, where there's some sort of cyclical headwinds still that you're seeing and then some of the bright spots in medical and areas like that?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : And who are the customers that you think about in robotics? I was talking to a company yesterday saying there's dozens of them now and you have to have a breadth of distribution-based strategy to serve it as opposed to some of the high-profile stuff that's out there?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Great. Well, in addition to robots, there's a lot of enthusiasm for data center these days in AI as well. For you guys, you had a quarterly record. I think it was 7% of revenue going into data center. Can you talk about the visibility that you have in that business and go through some of your content drivers over time?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : And maybe you could talk about the power management as a lot of discussion of moving from 48 volts to 800 volts, how is Allegro positioned for those transitions?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Okay. And you've talked about content in AI servers being a lot higher than traditional servers. I guess where are you in penetrating those opportunities today?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Yeah. A lot of innovation in those markets. I'll ask one more question and then open it to the audience. Maybe just talk about your portfolio, your sensor portfolio. I think you released the industry's first 10 megahertz TMR current sensor. Can you just talk about that and kind of where you feel you are with the roadmap of your sensor products?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Okay. Let me pause here. We have 5 minutes left to see if there's any questions from the audience. Unidentified Participant Can you talk about the dollar content that goes into humanoids comparison to EVs or cars in general?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Can we close out with a little bit on -- we got another questi Unidentified Participant I just wanted a bit of clarification on your side about magnetic sensing. In particularly in cars, there's a company in Europe, Melexis that does a lot of hall effect sensors, I think, and they quite a big market share in that. But I see you say that you're the market leader and also that your TMR technology is going to be better or replace Hall effect sensors. Could you explain the competitive dynamics and how that TMR technology help you take market share and where you are in that journey?

Question: Joseph Moore - Morgan Stanley & Co Ltd - Analyst : Okay. Well, that brings us up to the end of our time. Thank you guys very much for being here.