EMCORE (EMKR) - 2024 Q3 - Quarterly Results

EMCORE Fiscal 2024 Third Quarter Results EMCORE reported strong Q3 2024 financial results, highlighting improved gross margins, reduced operating expenses, and a positive outlook for Q4 Company Information and Disclosures EMCORE provides inertial navigation products, with disclosures on conference calls, forward-looking statements, and associated risks - EMCORE is a provider of inertial navigation solutions for the aerospace and defense industry, using PIC, Quartz MEMS, and Lithium Niobate chip-level technology[1][4] - A conference call to discuss the financial results is scheduled for August 7, 2024, at 8:00 a.m. ET[3] - The report includes forward-looking statements and warns of risks including ability to obtain capital, restructuring challenges, loss of personnel, and competition[8][10][11] - The company explains its use of non-GAAP measures to reflect core ongoing operating performance, noting these are supplemental to GAAP and may not be comparable to other companies' measures[4][5] Financial Highlights and Business Outlook EMCORE reported strong Q3 2024 revenue and improved margins, with a positive outlook for Q4 revenue and continued cost reductions Q3 FY2024 vs Q2 FY2024 Financial Highlights (in millions) | Metric | Q3 2024 (ended Jun 30, 2024) | Q2 2024 (ended Mar 31, 2024) | Change | | :--- | :--- | :--- | :--- | | Revenue | $20.4M | $19.6M | +$0.8M | | Gross Margin | 25% | 17% | +8% | | Non-GAAP Gross Margin | 24% | 15% | +9% | | Non-GAAP Operating Expenses | $9.1M | $9.8M | -$0.7M | | Net Loss on Continuing Operations | ($14.5M) | ($7.8M) | -$6.7M | | Non-GAAP Net Loss on Continuing Operations | ($4.4M) | ($7.0M) | +$2.6M | | Adjusted EBITDA | ($3.6M) | ($5.8M) | +$2.2M | | Ending Cash and Cash Equivalents | $9.0M | $12.0M | -$3.0M | - Revenue strength in Q3 2024 was attributed to record high shipments from the Concord site and solid performance at the Tinley Park operation[2] - The company's restructuring and asset impairment charges in Q3 2024 totaled $4.3 million[2] - For Q4 2024, revenue is projected to be in the range of $20 million to $22 million[2][8] Consolidated Financial Statements This section presents the unaudited condensed consolidated balance sheets and statements of operations for the specified periods Condensed Consolidated Balance Sheets Total assets, liabilities, and shareholders' equity decreased from September 2023 to June 2024, primarily due to reduced cash Balance Sheet Comparison (in thousands) | Account | June 30, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $8,477 | $26,211 | | Total current assets | $67,729 | $92,386 | | Total assets | $108,441 | $143,913 | | Total current liabilities | $23,524 | $28,791 | | Total liabilities | $54,089 | $63,623 | | Total shareholders' equity | $54,352 | $80,290 | Condensed Consolidated Statements of Operations Q3 2024 revenue decreased, and net loss from continuing operations significantly increased due to restructuring and impairment charges Statement of Operations Summary - Three Months Ended June 30 (in thousands, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $20,435 | $26,718 | | Gross profit | $5,013 | $7,260 | | Total operating expense | $14,276 | $10,070 | | Operating loss | ($9,263) | ($2,810) | | Net loss from continuing operations | ($14,527) | ($3,028) | | Net loss from continuing operations per share | ($1.60) | ($0.56) | Statement of Operations Summary - Nine Months Ended June 30 (in thousands, except per share data) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $64,192 | $70,947 | | Gross profit | $14,348 | $16,500 | | Operating loss | ($21,196) | ($19,914) | | Net loss from continuing operations | ($26,665) | ($20,566) | | Net loss from continuing operations per share | ($2.96) | ($4.52) | Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP to non-GAAP financial measures, providing adjusted gross profit, operating expenses, net loss, and Adjusted EBITDA GAAP to Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | GAAP Gross Profit | $5,013 | $3,247 | | Non-GAAP Gross Profit | $4,824 | $2,862 | | GAAP Gross Margin | 25% | 17% | | Non-GAAP Gross Margin | 24% | 15% | GAAP to Non-GAAP Operating Expense Reconciliation (in thousands) | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | GAAP Operating Expense | $14,276 | $10,870 | | Non-GAAP Operating Expense | $9,071 | $9,785 | GAAP Net Loss to Non-GAAP Net Loss and Adjusted EBITDA Reconciliation (in thousands) | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | GAAP Net Loss from Continuing Operations | ($14,527) | ($7,775) | | Non-GAAP Net Loss from Continuing Operations | ($4,426) | ($6,990) | | Adjusted EBITDA | ($3,577) | ($5,769) |