Josh Buchalter's questions to Allegro Microsystems Inc (ALGM) leadership • Q2 2025
Question
Speaking for Josh Buchalter, an analyst from TD Cowen inquired about the recovery in the industrial segment, asking to identify specific green shoots and future trends.
Answer
CEO Vineet Nargolwala highlighted positive momentum in the medical business, acquired via Crocus, and in select consumer applications. While he was hesitant to call a full broad-based recovery, citing a more likely timeline of calendar 2025, he noted that encouraging signs are emerging in order patterns. CFO Derek D'Antilio explained that Q3 gross margin is expected to expand despite lower revenue because a one-time quality charge from Q2 will not repeat and geographic mix will normalize.