Financial Performance - Second Quarter 2024 GAAP revenue was $236 million, a 2.8% increase from $229.5 million in the same quarter of 2023[2][4] - GAAP net income for the second quarter 2024 was $13.8 million, down from $20.9 million in the second quarter of 2023, representing a decrease of 34%[3][5] - Adjusted EBITDA for the second quarter 2024 was $51.1 million, slightly down from $51.7 million in the same quarter of 2023[3][5] - The company experienced a 5.3% decrease in organic revenue growth for the second quarter 2024, excluding acquisitions and foreign currency impacts[4] - Revenue for the three months ended June 28, 2024, was $235,864, an increase of 2.0% from $229,464 for the same period in 2023[12] - Operating income fell to $25,715, a decrease of 20.1% compared to $32,198 in the prior year[12] - Net income for the period was $13,755, down 34.2% from $20,879 in the same quarter last year[12] - Basic and diluted earnings per share were both $0.38, compared to $0.58 for the same period in 2023[12] Revenue Projections - For the full year 2024, the company expects GAAP revenue of approximately $975 million, indicating a growth of over 10%[6] - For the third quarter of 2024, the company expects GAAP revenue between $241 million and $244 million[6] Cash Flow and Assets - The company reported an operating cash flow of $41.1 million for the second quarter 2024, compared to $26.2 million in the same quarter of 2023[5] - The company reported a net cash provided by operating activities of $41,095, compared to $26,197 in the same quarter last year[14] - Cash and cash equivalents at the end of the period were $98,468, a decrease from $105,051 at the end of December 2023[13] - Free cash flow (Non-GAAP) for the three months ended June 28, 2024, was $36,158, representing 262.9% of net income[22] Debt and Liabilities - Total assets increased to $1,398,574, up 14.0% from $1,226,056 at the end of December 2023[13] - Total liabilities rose to $696,582, an increase of 26.0% from $552,596 at the end of the previous year[13] - Total debt (GAAP) increased to $481,926 as of June 28, 2024, compared to $354,372 in December 2023[21] Profitability Metrics - Gross profit decreased to $103,689, down 0.4% from $104,123 year-over-year, resulting in a gross profit margin of 44.0%[12][16] - Adjusted gross profit margin for the Medical Solutions segment was 42.9%, slightly up from 42.4% year-over-year[16] - GAAP operating income for the three months ended June 28, 2024, was $25,715, with an operating margin of 10.9%[17] - Adjusted operating income (Non-GAAP) for the same period was $41,343, reflecting an adjusted operating margin of 17.5%[17] - The company reported a net income of $13,755 for the three months ended June 28, 2024, compared to $20,879 for the same period in 2023, indicating a decline in net income margin from 9.1% to 5.8%[20] Tax and Shares - The effective tax rate for the three months ended June 28, 2024, was 19.7%[17] - The weighted average diluted shares outstanding for the three months ended June 28, 2024, was 36,092[17] Other Insights - The company noted that new products are accelerating in adoption, particularly in medical device end-markets and robotics[6] - The company incurred total non-GAAP adjustments of $15,628, which accounted for 6.6% of total income[17] - Free Cash Flow is defined as net cash from operating activities minus cash for property, plant, and equipment purchases, plus cash from sales of property, plant, and equipment[31] - Free Cash Flow as a Percentage of Net Income is calculated by dividing Free Cash Flow by Net Income, indicating liquidity and growth funding capability[31] - Net Debt is defined as total debt plus unamortized deferred financing costs minus cash and cash equivalents at the end of the period[32] - Management uses Net Debt to assess outstanding debt obligations that cannot be covered by available cash and cash equivalents[32]

Company Overview - Novanta is experiencing strong momentum in medical applications, driven by increasing demand for robotics, automation, minimally invasive and robotic surgery, and precision medicine [1] - Novanta's stock price increased by 3.8% to close at $171.82, with significant trading volume compared to normal sessions [4] - The consensus EPS estimate for Novanta's upcoming quarterly report is $0.69, reflecting a year-over-year decline of 13.8%, while revenues are expected to be $233.33 million, an increase of 1.7% from the previous year [5] Earnings Estimates and Trends - The consensus EPS estimate for Novanta has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [6] - Trends in earnings estimate revisions are strongly correlated with near-term stock price movements, suggesting that monitoring these trends is crucial for assessing future stock performance [2] Industry Context - Novanta operates within the Zacks Electronics - Miscellaneous Components industry, which includes other companies like Fabrinet [7] - Fabrinet's consensus EPS estimate for its upcoming report has increased by 1.3% to $2.24, representing a 20.4% increase from the previous year [3]

Investors might want to bet on Novanta (NOVT) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a chang ...

Conference Call Participants Novanta Inc. (NASDAQ:NOVT) Q1 2024 Earnings Conference Call May 7, 2024 10:00 AM ET Company Participants Ray Nash - Corporate Finance Leader Matthijs Glastra - Chair & CEO Robert Buckley - CFO Lee Jagoda - CJS Securities Brian Drab - William Blair Rob Mason - Baird Operator Good morning. My name is Gary and I will be your conference operator today. At this time, I would like to welcome everyone to Novanta Inc. First Quarter 2024 Earnings Call. All lines have been placed on mute ...

Novanta (NOVT) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 29.82%. A quarter ago, it was expected that this photonic and motion control components maker would post earnings of $0.63 per share when it actually produced earnings of $0.63, delivering no surprise.Over the last four qu ...

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. ...