FOR IMMEDIATE RELEASE May 7, 2024 BEDFORD, Mass., May 7, 2024 -- Novanta Inc. (Nasdaq: NOVT) ("Novanta" or the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, today reported financial results for the first quarter 2024. | Financial Highlights | | Three Months Ended | | | | --- | --- | --- | --- | --- | | (In millions, except per share amounts) | March 29, | | | March 31, | | | 2024 | | | 2023 | | GAAP | | | | | | Revenue | $ | 230.9 | $ | 219.1 | | Operat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ 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 (I.R.S. Employer Identification No.) (781) 266-5700 (Registrant's telephone number, including area code) Securities Registered Pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s ...

Fourth Quarter FOR IMMEDIATE RELEASE February 28, 2024 Novanta Announces Financial Results for the Fourth Quarter and Full Year 2023 BEDFORD, Mass., February 28, 2024 -- Novanta Inc. (Nasdaq: NOVT) ("Novanta" or the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, today reported financial results for the fourth quarter and full year 2023. | Financial Highlights | | | Three Months Ended December 31, | | | | Year Ended December 31, | | | --- | --- | --- | -- ...

Financial Data and Key Metrics Changes - The company reported revenue of $222 million for Q3 2023, representing a 1% year-over-year decline on a reported basis and a 3% decline on an organic basis [32] - Gross margins were recorded at 47%, with an adjusted EBITDA margin of nearly 24% [33] - Cash flow increased over 200% compared to the prior year, achieving more than 175% conversion to net income [33][56] - Adjusted gross profit was $105 million, or 47% adjusted gross margin, up from $102 million, or 46% adjusted gross margin in Q3 2022 [55] Business Line Data and Key Metrics Changes - Medical markets sales grew 12% year-over-year, accounting for approximately 57% of total sales, driven by strong demand in minimally invasive surgery equipment and surgical robotics [40] - Advanced industrial markets saw a 6% year-over-year decline, making up about 36% of total sales, primarily due to the impact of rising interest rates and weakness in China [43] - Microelectronics markets experienced a nearly 40% decline year-over-year, representing less than 8% of total sales [44] Market Data and Key Metrics Changes - Sales to North America grew 11% year-over-year, while sales in Europe declined by 2% [46] - Sales in China, which represented about 7% of overall sales, declined 35% year-over-year due to microelectronics revenue decline and industrial robotics pause [46] Company Strategy and Development Direction - The company is focused on executing a new product Super Cycle, with significant product launches expected in late 2024 and 2025 [38][50] - The strategy includes rationalizing the portfolio to phase out lower-margin products and focusing on high-growth applications [14][60] - The company aims to leverage acquisitions to enhance its presence in high-growth markets, particularly in medical and advanced industrial sectors [54][101] Management's Comments on Operating Environment and Future Outlook - Management noted a temporary deferral in customer orders due to rising interest rates and geopolitical uncertainties, but expects recovery in 2024 [93][94] - The long-term outlook remains strong, with confidence in the company's ability to navigate short-term challenges and capitalize on new product launches [88][86] Other Important Information - The company has made progress in reducing lead times and improving customer satisfaction, resulting in a book-to-bill ratio of 0.8 [36] - The Vitality Index was about mid-teens percentage of sales, expected to rebound above 20% with new product launches [51] Q&A Session Summary Question: Is the customer deferral a one-quarter issue? - Management indicated that there is a bit of an overreaction by some customers, and they expect a recovery in demand as 2024 progresses [93] Question: What is the timing for new products in the microelectronics business? - Management noted a slight shift in demand profile for 2024, with confidence in long-term growth potential [95] Question: What is the company's approach to M&A? - The company is focused on acquiring businesses that enhance its exposure to high-growth applications, particularly in medical and advanced industrial markets [101]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to NOVANTA INC. (Exact name of registrant as specified in its charter) New Brunswick, Canada 98-0110412 (State or other jurisdiction of incorporation or organization) (I. ...

Financial Data and Key Metrics Changes - Novanta reported $219 million in revenue for Q1 2023, reflecting a 7% year-over-year growth on a reported basis and 8% on an organic basis [7] - Adjusted EBITDA was $47 million, with an adjusted diluted earnings per share of $0.74, both exceeding expectations [7][27] - Non-GAAP adjusted gross profit was $101 million, maintaining a gross margin of 46%, consistent with the previous year [27] - Cash flow for the first quarter was approximately $7 million, up 28% year-over-year [29] Business Line Data and Key Metrics Changes - Medical markets sales grew 22% year-over-year, accounting for approximately 54% of total sales [11] - Advanced industrial markets, excluding microelectronics, saw a 1% year-over-year increase, representing about 38% of total sales [12] - Microelectronics, which constituted less than 9% of sales, experienced double-digit declines year-over-year [13] - The Precision Medicine and Manufacturing segment (formerly Photonics) grew 11% year-over-year [30] - Medical Solutions segment (formerly Vision) reported a 25% year-over-year growth [33] - Robotics and Automation segment (formerly Precision Motion) experienced a 9% year-over-year decline [36] Market Data and Key Metrics Changes - North America sales increased by 26% year-over-year, while Europe sales declined by 1% [14] - Sales in China, representing about 8% of total sales, fell 34% year-over-year, primarily due to microelectronics revenue decline [14] Company Strategy and Development Direction - The company emphasizes a diversified business model focused on high-growth medical and advanced industrial markets, leveraging long-term trends in robotics, automation, and precision medicine [8] - Investments in new manufacturing facilities and R&D are aimed at supporting future growth and product launches [16][49] - The company is transitioning its reporting segments to better align with strategic focus and customer needs [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year outlook, citing strong demand in medical markets and a robust backlog [19][51] - The company anticipates continued challenges in the microelectronics sector but expects to stabilize and grow in other areas [41][84] - Management highlighted the importance of new product launches and design wins for future revenue growth [66][72] Other Important Information - The vitality index for new products was in the mid-teens percentage of sales, reflecting a transition year [15] - The company is working to reduce lead times for products back to historical averages, which have improved significantly [10][78] Q&A Session Summary Question: Microelectronics business and EUV lithography - Management indicated that microelectronics exposure is around 7% to 8% of total revenue, with a shift towards EUV applications expected in the future [58] Question: Update on the Czech facility - The company is winding down lower-margin product lines at the Czech facility, which has been a margin headwind but is expected to improve as new products ramp up [60][61] Question: Opportunities related to new product launches - Management confirmed that the $50 million revenue opportunity for 2025 is based on a combination of new product launches and existing customer relationships [65][72] Question: Pricing strategy in the current environment - The company is using price increases to offset inflationary pressures while aiming to expand gross margins by 100 basis points [73][74] Question: Backlog and past due backlog - Management reported a 25% sequential reduction in past due backlog and a significant decrease in lead times, indicating improved operational efficiency [77][78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 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 No.: 001-35083 NOVANTA INC. (Exact name of registrant as specified in its charter) New Brunswick, Canada 98-0110412 (State or other jurisdiction of in ...

Novanta Inc. (NASDAQ:NOVT) Q4 2022 Results Conference Call March 1, 2023 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - Chair and Chief Executive Officer Robert Buckley - Chief Financial Officer Conference Call Participants Lee Jagoda - CJS Securities Brian Drab - William Blair Joseph Donahue - Baird Operator Good morning. My name is Keith, and I will be your conference operator today. At this time, I would like to welcome everyone to Novanta Inc. 2022 Fourth Quarter ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 No. 001-35083 NOVANTA INC. (Exact name of registrant as specified in its charter) New Brunswick, Canada 98-0110412 (State or other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - Novanta achieved record results in Q3 2022 with revenue of $223 million, representing a 25% year-over-year growth on a reported basis and 21% organic growth [9][10] - Adjusted EBITDA was $49 million, up 22% year-over-year, with adjusted diluted earnings per share of $0.81, an 8% increase compared to the previous year [10][26] - The company raised its full-year 2022 financial guidance due to strong year-to-date performance [10][34] Business Line Data and Key Metrics Changes - Advanced industrial markets saw a 33% year-over-year growth and 5% sequential growth, driven by demand in automation and robotics [13] - Medical applications grew 19% year-over-year and 6% sequentially, with strong orders in surgical robotics and minimally invasive surgery equipment [15] - The Photonics segment experienced a 28% year-over-year revenue growth, while the Vision segment grew 12% year-over-year [28][30] Market Data and Key Metrics Changes - Sales in Europe grew 15%, while the U.S. saw a 36% year-over-year increase [16] - China revenue grew 9% year-over-year, but excluding acquisitions, it was down double digits due to the microelectronics downturn [16] - The overall book-to-bill ratio for Novanta normalized to 0.91 in Q3, with a year-to-date book-to-bill of 1.12 [12] Company Strategy and Development Direction - Novanta is focused on medical and advanced industrial applications, capitalizing on long-term trends such as robotics and automation [11][22] - The company continues to invest in R&D, with a Vitality Index of about 25% of sales from new products launched in the last four years [17] - A recent acquisition of MPH Medical Devices aims to enhance manufacturing capacity and improve gross margins in the medical consumables segment [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid macroeconomic challenges, with a strong backlog of $626 million [11][12] - The company anticipates continued strength in medical applications, which are expected to offset weaknesses in microelectronics [33] - Management expects to exit 2022 with near-record backlog and accelerating demand trends in medical markets [34] Other Important Information - Adjusted gross profit for Q3 was $101.7 million, with a 46% adjusted gross margin, up from 45% in the previous year [24] - Operating cash flow was approximately $15 million, impacted by higher inventory purchases and accounts receivables [27] - The company expects gross margins in Q4 to exceed 46%, maintaining a target of 46% for the full year [36] Q&A Session Summary Question: Can you parse out the mix of consumables versus capital equipment in the Vision segment? - Both consumables and capital equipment had strong growth in Q3, but volatility may arise in Q4 due to labor shortages in hospital systems [43] Question: How do you view the current capacity of the new facility acquired? - The facility will require 2023 for production line transfers and qualification, with significant contributions expected in 2024 [47] Question: What is the expected impact of currency on Q4 revenue guidance? - Similar FX headwinds as experienced in Q3 are expected to be embedded in the Q4 guidance [48][51] Question: How is the Precision Motion segment expected to trend in Q4 and beyond? - The segment is expected to decline 8% to 10% in Q4 due to the Westwind product line, but Celera Motion and ATI businesses are expected to grow mid-single digits [63] Question: What is the outlook for the medical market in 2023? - The medical market is expected to grow collectively in 2023, offsetting weaknesses in microelectronics [56]