Financial Data and Key Metrics Changes - The company reported Q3 2024 revenue of $143 million, representing a 32% year-over-year growth driven by the Cornell acquisition and 4% organic growth [5][10] - Adjusted EBITDA margins were 24.6%, with expectations for further margin expansion due to improved market conditions and synergies from the Cornell acquisition [5][6] - EPS for the quarter was $0.26, up 30% from the previous year [10][12] Business Line Data and Key Metrics Changes - Medtech & Specialty Audio segment revenue grew 10% year-over-year to $64 million, driven by higher demand in Hearing Health and Specialty Audio [10][11] - Precision Devices segment revenue increased 57% year-over-year to $79 million, primarily due to the Cornell acquisition, despite lower shipments in the industrial end market [10][11] - Gross margins for Medtech & Specialty Audio were 53.1%, down 60 basis points year-over-year, while Precision Devices had gross margins of 40%, down 40 basis points [10][11] Market Data and Key Metrics Changes - The defense market remains strong, while the industrial market shows weakness with inconsistent bookings from distribution partners [18][19] - The electrification market is flat year-over-year, with new design wins offsetting some declines [31] - Distribution partners report approximately six months of inventory on hand, indicating a need for inventory normalization [29][30] Company Strategy and Development Direction - The company is transitioning its portfolio to higher growth markets and products, focusing on Medtech, defense, electrification, and industrial sectors [4][9] - The sale of the Consumer MEMS Microphone business is part of the strategy to enhance shareholder value and focus on more attractive markets [4][9] - An Investor Forum is planned for Q1 2025 to discuss growth strategies and future plans in detail [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Hearing Health market, especially with new features in Apple products driving awareness and adoption [6][7] - There is cautious optimism for recovery in the industrial market by late Q1 and Q2 of 2025, although current conditions remain inconsistent [19][30] - The company anticipates modest sequential revenue growth in Q4 2024, with guidance for revenues between $141 million and $151 million [14][15] Other Important Information - The company generated $53 million in cash from operating activities, exceeding guidance due to lower net working capital [12] - Capital spending for Q3 was $4 million, with expectations for Q4 capital spending to be around $6 million [12][14] - The net leverage ratio based on trailing 12 months adjusted EBITDA was 1x, indicating a strong balance sheet position [13] Q&A Session Summary Question: Demand in Precision Devices (PD) segment - Management noted that the defense market remains strong, while industrial markets show weakness with inconsistent bookings [18][19] Question: CapEx expectations - Management indicated a go-forward CapEx level of around 3% of revenue, with potential fluctuations based on business cycles [20][21] Question: M&A environment - The company is actively assessing M&A opportunities, focusing on targets that align with their higher margin business strategy [23][24] Question: Margin expansion opportunities in Cornell - Management highlighted continued opportunities for margin improvement through pricing and operational efficiencies [25][27] Question: Inventory levels and geographic demand patterns - Distribution partners report about six months of inventory, with expectations for normalization in the coming months [29][30] Question: Changes in demand patterns in other end markets - Management stated that consumer demand remains stable, with no significant issues observed [33]

Financial Performance - Revenues from continuing operations for Q3 2024 increased by 32% year-over-year to $143 million, at the high end of the guided range[1] - Net cash provided by operating activities reached $53 million, exceeding the high end of the guided range[1] - Non-GAAP diluted EPS from continuing operations was $0.26, at the midpoint of the guided range[2] - The Cornell acquisition contributed to the revenue growth, alongside an organic growth of 4%[2] - Gross profit for Q3 2024 was $62.9 million, representing 44.1% of revenues, compared to 46.6% in Q3 2023[3] - Operating earnings for Q3 2024 were $18.7 million, an increase from $11.4 million in Q3 2023[12] - Revenues for the nine months ended September 30, 2024, increased to $411.0 million, up 29.4% from $317.6 million in the same period of 2023[14] - Gross profit for the nine months ended September 30, 2024, was $173.9 million, representing a gross margin of 42.3%, compared to $145.2 million and 45.7% in the prior year[14][16] - Operating earnings for the nine months ended September 30, 2024, were $36.4 million, an increase of 13.4% from $32.1 million in the same period of 2023[14] - Net loss for the nine months ended September 30, 2024, was $(256.3) million, compared to net earnings of $25.0 million in the same period of 2023[14] - Basic earnings per share from continuing operations decreased to $0.15 for the nine months ended September 30, 2024, down from $0.43 in the prior year[14] - Net earnings from continuing operations for the quarter ended September 30, 2024, were $9.2 million, compared to $4.8 million for the same period last year, representing a 92% increase[17] - Non-GAAP net earnings for the quarter were $24.2 million, up from $18.4 million year-over-year, reflecting a 31% growth[17] - Diluted earnings per share from continuing operations increased to $0.10, compared to $0.05 in the prior year, marking a 100% rise[17] Expenses and Liabilities - Research and development expenses for Q3 2024 were $10.2 million, up from $8.1 million in Q3 2023[12] - Selling and administrative expenses rose to $106.8 million for the nine months ended September 30, 2024, up from $87.3 million in the prior year[14] - Interest expense, net, significantly increased to $12.9 million for the nine months ended September 30, 2024, compared to $2.2 million in the same period of 2023[14] - Research and development expenses increased to $29.2 million for the nine months ended September 30, 2024, compared to $24.0 million in the same period of 2023[14] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased to $95.0 million for the nine months ended September 30, 2024, up from $62.3 million in the same period of 2023[20] - Adjusted free cash flow for the nine months ended September 30, 2024, was $63.5 million, compared to $32.7 million for the same period in 2023[22] - Non-GAAP net cash attributable to continuing operations was $72.9 million for the nine months ended September 30, 2024, compared to $40.7 million in the same period of 2023[22] - Capital expenditures for the nine months ended September 30, 2024, were $10.3 million, slightly down from $11.8 million in the same period of 2023[22] - The company made payments of $130.0 million under its revolving credit facility during the nine months ended September 30, 2024[20] - The company reported a net cash used in financing activities of $87.2 million for the nine months ended September 30, 2024, compared to $35.3 million in the same period of 2023[20] - The company experienced a net increase in cash and cash equivalents of $5.3 million for the nine months ended September 30, 2024, compared to an increase of $26.9 million in the same period of 2023[20] Balance Sheet - Total current assets as of September 30, 2024, amounted to $436.0 million, an increase from $428.8 million at December 31, 2023[19] - Cash and cash equivalents rose to $92.6 million, up from $87.3 million at the end of the previous year[19] - Total liabilities decreased to $393.9 million from $453.1 million at December 31, 2023, indicating a reduction of approximately 13%[19] - Total stockholders' equity decreased to $777.4 million from $1,034.1 million, reflecting a decline of about 25%[19] - Current liabilities increased to $185.9 million from $164.6 million, representing a 13% rise[19] - Long-term debt decreased to $175.5 million from $224.1 million, showing a reduction of approximately 22%[19] Discontinued Operations and Impairments - The company reported a loss from discontinued operations of $(269.3) million for the nine months ended September 30, 2024, compared to $(14.0) million in the prior year[14] - The company recognized a goodwill impairment of $262.5 million during the nine months ended September 30, 2024[20] Future Guidance - Q4 2024 revenue guidance is projected between $141 million and $151 million, with diluted EPS expected between $0.12 and $0.16[4] - The company anticipates continued sequential revenue growth in Q4 2024 across its Medtech & Specialty Audio and Precision Devices segments[2]

Knowles (NYSE: KN ) continues to largely see stability in their end markets following softness over the past 12 months. Assuming most of this demand decline is indeed a reflection of market trends rather than competitive issues, the Analyst's Disclosure: I/we have a beneficial long position in the shares of KN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I ...

IRVINE, Calif., Sept. 19, 2024 (GLOBE NEWSWIRE) -- Syntiant Corp., the recognized leader in low power edge AI deployments, today announced it has signed a definitive agreement to acquire certain assets of Knowles Corporation's (NYSE: KN) Consumer MEMS Microphones (CMM) business. Knowles' CMM division is an industry-leading manufacturer and supplier of high performance SiSionic™ micro-electro-mechanical systems (MEMS) microphones that are essential for voice and audio applications in smartphones, smart speak ...

The QAS Series reduces early failures in relays, switch contacts, and solid-state components ITASCA, Ill., Aug. 8, 2024 /PRNewswire/ -- Knowles Corporation (NYSE: KN), a market leader and global provider of advanced micro-acoustic microphones and speakers, audio solutions, and high-performance capacitors and RF products, today announced the QAS Series, a new line of RC-type Arc Suppressor/Snubber components that extend the operating life of electronic and electro-mechanical devices. Knowles' Cornell Dubilie ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36102 Knowles Corporation (Exact name of registrant as specified in its charter) (State or other jurisdictio ...

Safe Harbor Non-GAAP Disclaimer Q1 2024 Year-over-Year 144.3 196.4 +300.0% +36.1% -21.0% 21.9 17.3 1Q231Q24 0.05 0.20 1Q231Q24 • Non-GAAP Diluted EPS increased from Q1 2023 as shipment volumes were significantly higher driving increased gross profit. Earnings Release Supplemental Information May 1, 2024 This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our futu ...

Financial Contact: Sarah Cook Knowles Investor Relations Email: investorrelations@knowles.com Exhibit 99.1 Knowles Reports Q1 2024 Financial Results and Provides Outlook for Q2 2024 Q1 2024 Revenue of $196 million; above the midpoint of the Guided Range Q1 Net Cash from Operations of $17 million; above the high end of the Guided Range ITASCA, Ill., May 1, 2024 - Knowles Corporation (NYSE: KN) ("Knowles" the "Company"), a leading global supplier of high performance components and solutions, including capacit ...

Sundry Photography/iStock Editorial via Getty Images Introduction Knowles Corporation (NYSE:KN) has had a bit of an underwhelming history and indeed, the stock's been essentially flat (with minimal variability) for the past 9 years. Thanks to poor capital allocation decisions (M&A) resulting in negative value for shareholders and competitive pressures in their MEMS business, a lot of investors have been understandably disinterested in the business. But like most investors are reminded, historical returns ar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36102 Knowles Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...