indie Semiconductor(US:INDI)2024-11-08 21:08Revenue Performance - Revenue for the three months ended September 30, 2024 was $54.0 million, a decrease of $6.5 million or 11% compared to $60.5 million for the same period in 2023, primarily due to a $2.1 million decrease in product revenue and a $4.4 million decrease in contract revenue [173]. - Product revenue for the three months ended September 30, 2024 was $51.3 million, representing 95% of total revenue, while contract revenue was $2.7 million, representing 5% of total revenue [173]. - Revenue for the nine months ended September 30, 2024 was $158.7 million, an increase of $5.6 million or 4% compared to $153.0 million for the same period in 2023, primarily driven by a $16.4 million increase in product revenue [184]. - Product revenue for the nine months ended September 30, 2024 was $148.9 million, representing 94% of total revenue, while contract revenue decreased by $10.8 million or 52% to $9.8 million [184]. Operating Expenses - Total operating expenses for the three months ended September 30, 2024 were $103.9 million, an increase of $7.2 million or 7% compared to $96.6 million for the same period in 2023 [175]. - Research and development expenses increased by $4.4 million or 11% to $46.0 million for the three months ended September 30, 2024, primarily due to increased share-based compensation [176]. - Selling, general, and administrative expenses rose by $1.0 million or 5% to $20.8 million for the three months ended September 30, 2024, driven by increased share-based compensation expenses [177]. - Total operating expenses for the nine months ended September 30, 2024 were $294.9 million, an increase of $27.9 million or 10% compared to $266.9 million for the same period in 2023 [186]. - Research and development (R&D) expenses increased by $16.6 million or 14% to $136.9 million for the nine months ended September 30, 2024, primarily due to increased headcount and share-based compensation [187]. - Selling, general, and administrative expenses rose by $5.3 million or 10% to $60.6 million for the nine months ended September 30, 2024, driven by higher personnel costs and share-based compensation [188]. Net Income and Loss - The company recognized a net loss of $5.0 million in other income (expense) for the three months ended September 30, 2024, compared to a gain of $18.1 million for the same period in 2023, reflecting significant changes in fair value of warrants and contingent considerations [180]. - The company reported a net loss of $109.8 million for the nine months ended September 30, 2024, compared to a net loss of $114.2 million for the same period in 2023 [209][210]. Cash Flow and Liquidity - As of September 30, 2024, the company had cash and cash equivalents of $107.2 million, including restricted cash [195]. - For the nine months ended September 30, 2024, net cash used in operating activities was $51.9 million, a decrease of 41% compared to $88.0 million for the same period in 2023 [207][210]. - Net cash used in investing activities decreased significantly to $16.7 million in 2024 from $103.6 million in 2023, primarily due to the Kinetic acquisition and reduced capital expenditures [211]. - Net cash provided by financing activities was $23.5 million for the nine months ended September 30, 2024, down 31% from $34.2 million in 2023 [212][213]. - The company expects to continue incurring net operating losses and negative cash flows as it expands operations and product offerings [205]. Acquisitions and Investments - The acquisition of Kinetic Technologies was completed on January 25, 2024, with an initial cash consideration of $3.2 million and additional contingent considerations totaling $4.6 million based on production and revenue milestones [169]. - The company completed multiple acquisitions, including GEO for $93.4 million in cash and stock, and Silicon Radar for approximately $9.2 million, with additional contingent considerations based on future performance [201][202]. - The company completed the acquisition of certain business properties from Kinetic for a total consideration of $3.2 million in cash, with additional contingent considerations of $2.3 million based on production and revenue milestones [204]. Interest Income and Currency - Interest income for the three months ended September 30, 2024 was $1.0 million, a decrease of $0.9 million or 47% compared to $1.9 million for the same period in 2023 [179]. - Interest income for the nine months ended September 30, 2024 was $3.4 million, a decrease of $2.8 million or 45% from the same period in 2023, primarily due to lower cash balances [190]. - The company has a cumulative foreign currency translation loss of $8.5 million as of September 30, 2024, compared to $20.3 million in 2023, primarily due to fluctuations in exchange rates [219][220]. - The company plans to enter into additional foreign currency forward contracts to mitigate risks associated with currency fluctuations [220]. Future Obligations - Future estimated cash payments due for contractual obligations total $221.8 million, with $20.4 million due within the next year [215]. - The investment portfolio totals approximately $107.2 million as of September 30, 2024, with a focus on liquidity and capital preservation [221].