Sponsored by TCI International Inc.
14 Nov 22. Rheinmetall takes over Spain’s Expal Systems S.A. – Move brings the Group new ammunition production capacity Rheinmetall AG today concluded a purchase contract with MaxamCorp. Holding S.L. of Madrid to acquire the entire share capital of Expal Systems S.A of Madrid, a globally renowned ammunition maker. Completion of the transaction, for which a closing date in summer 2023 is sought, is subject to approval by the competition authorities and other regulatory checks. The purchase price agreed between Rheinmetall and MaxamCorp., which is due after closing, is based on an enterprise value of €1.2bn. In making this acquisition, the Düsseldorf-based technology enterprise is seeking to bolster its core weapon, ammunition and propellant business in a sustained way, with increased spare production capacity and an expanded product portfolio the prime focal points.
In a dynamic market situation propelled by massive demand for military equipment in multiple countries, the acquisition provides Rheinmetall with swift access to significantly greater capacity. Given the expected large increase in demand from numerous nations, Rheinmetall wants to position itself as strongly as possible to address the anticipated inflow of new requests for tender for ammunition purchases. Of special strategic importance to Rheinmetall in this context is the resulting access to extra production capacity for propulsions and charges, which are subject to bottlenecks in Europe in the meantime.
Because the product spectrums of the two companies complement each other so well, the acquisition substantially augments Rheinmetall’s existing range of products, especially in the fast-growing market for artillery and mortar ammunition as well as mortar systems. The buyout also adds to Rheinmetall’s portfolio in the field of fuses and rocket propulsion systems, for example, as well as in medium-calibre ammunition and aircraft armament, while simultaneously reducing the Group’s dependence on suppliers for some industrial intermediates and ammunition components.
In important areas like purchasing and sales, synergies will have a positive impact on costs, which will also benefit customers. Thanks to this acquisition, Rheinmetall is gaining a valuable strategic foothold in Spain, and thus direct access to this important market. Rheinmetall sees maintaining the company’s existing technology and staff as essential; all operational locations (Trubia, Burgos, Navalmoral, El Gordo, Albacete and Murcia in Spain as well as Texarkana, Texas in the USA) are therefore to remain open. Expal Systems S.A. expects sales in FY 2022/23 to be around €400m. The company’s total capacity offers scope for potential annual sales of €700 to €800m.
09 Nov 22. BigBear.ai Announces Third Quarter 2022 Financial Results.
Company achieves 8% quarter-over-quarter revenue growth driven by key wins and growth within Analytics; cost savings initiatives expected to drive $20m of annualized expense savings
BigBear.ai Holdings, Inc. (NYSE: BBAI) (“BigBear.ai” or the “Company”), a leader in AI-powered analytics and cyber engineering solutions, today announced financial results for the third quarter of 2022.
- Revenue of $40.7m, compared to $40.2m for the third quarter of 2021
- Analytics revenue increased $1.7m, or 8%, as compared to the same period in 2021, primarily driven by the award of the U.S. Army Global Force Information Management (GFIM) contract in the third quarter of 2022
- Gross margin of 29%, compared to 27% for the third quarter of 2021
- Segment adjusted gross margin of 43% for the Analytics segment, compared to 49% for the third quarter of 2021, driven primarily by contract mix
- Segment adjusted gross margin of 22% for the Cyber & Engineering segment, compared to 21% for the third quarter of 2021
- Net loss of $(16.1)m, compared to $(3.1)m for the third quarter of 2021, primarily driven by higher public company expenses as well as infrastructure and integration costs
- Non-GAAP adjusted EBITDA* of $(3.9)m
- Ending backlog of $288m
- Ending cash balance of $22m
- On-track with planned cost savings initiatives expected to drive $20m of annualized operating expense savings
- Affirmed 2022 financial outlook
Mandy Long, who joined BigBear.ai in October as the Company’s CEO, said, “In the third quarter, we made significant progress to improve our financial profile, including 8% revenue growth in our analytics business, with a key $14.8m sole-source contract award from the U.S. Army to implement the Global Force Information Management (GFIM) system. In addition, our ongoing actions to reduce expenses and cash usage are helping move us to a sustainable growth model. Based on our improved operational efficiency and the continued health of our backlog, we are reaffirming our outlook for 2022.”
Third Quarter 2022 vs. Second Quarter 2022 Comparative Financial Highlights
- Analytics revenue increased $3.7m, or 20%, primarily driven by the award of the U.S. Army GFIM contract in the third quarter of 2022, as well as increased volume on other Analytics programs
- Gross margins expanded from 25% in the second quarter of 2022 to 29% in the third quarter of 2022, primarily driven by reduced volume on low margin contracts
- Net cash used in operating activities was $6.4m in the third quarter, compared to $24.5 m in the second quarter, driven primarily by lower operational spending and integration costs, investment contracts, and interest payments
BigBear.ai CFO Julie Peffer said, “In the third quarter, we made substantial progress on our initiatives to reduce expenses, manage our working capital, and significantly increase our operational efficiency, including our previously announced reduction in force, largely focused on non-billable headcount reduction. In the fourth quarter, the effects of rightsizing our cost structure will continue, and we expect to realize additional operational efficiencies.
“From a liquidity perspective, we ended the third quarter with $22m of cash on our balance sheet, and we are amending our credit facility with Bank of America which will give us access to $25 m of additional liquidity, upon meeting the terms of the agreement. Our improved operational discipline coupled with our stabilized liquidity position will enable us to target and pursue the right investments for sustainable growth,” concluded Peffer. (Source: BUSINESS WIRE)
09 Nov 22. Rocket Lab Announces Third Quarter 2022 Results and Guidance for Fourth Quarter 2022.
- Record revenue of $63.1m, representing 14% sequential quarter-on-quarter growth and 1,093% Year-on-Year quarterly revenue growth
- Fourth quarter revenue expected to range between $51m and $54m as Q4 launch customer pushes into 2023
Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today shared the financial results for its fiscal third quarter of 2022, ended September 30, 2022.
Rocket Lab founder and CEO, Peter Beck, said: “This quarter recorded historic achievements for Rocket Lab. We continued our small launch industry-leading cadence of a successful mission every month in Q3, and following another successful launch early in Q4 we have now conducted nine orbital missions in 2022, beating our previous annual launch record. The development of our large Neutron rocket was accelerated this quarter with the selection of the NASA Stennis Space Center as the site for Archimedes engine testing and development, eliminating the need to build a site from scratch and speeding up our development time to first launch. Neutron hardware was also produced for the first time this quarter, including full-scale prototypes of the rocket’s Archimedes engine and seven-metre diameter tank section.
“Our space systems business growth is continuing, highlighted by our single largest satellite separation systems order in company history totalling $14 m. Since July 1, our space solar power business has also executed more than 50 contracts or modifications to existing contracts, and early in the fourth quarter we’ve booked more than $13 m in new business, with the majority of those bookings generated by space systems.”
Third Quarter 2022 Business Highlights:
- Launched three successful Electron missions in the third quarter: two for U.S. Government national security customer the National Reconnaissance Office, and a third for commercial constellation operator Synspective.
- Selected NASA Stennis Space Center as the site for Neutron engine testing and development, fast-tracking the program’s development to first launch by eliminating the need to build a new engine testing site from scratch.
- Progressed the development of the Neutron launch vehicle and its reusable Archimedes engines, with early prototypes produced including 3D-printed components and a seven-meter diameter Neutron tank section, and capital investment in long lead time tooling including structural moulds and rocket-building robots for automated tape laying.
- Secured the first of two awards to provide motorized lightbands to customers supporting the U.S. Department of Defense’s Tranche 1 Tracking Layer (T1TL) constellation.
- Awarded a contract to supply solar power for three Next Gen OPIR GEO (NGG) satellites for the U.S. Space Force (USSF), continuing the long-standing support of solar power products for missile-warning satellites for the USSF.
- Awarded a research agreement with the United States Transport Command (USTRANSCOM) to explore cargo transport use for Electron, Neutron, and Photon.
- Introduced Rocket Lab’s Responsive Space Program to enable rapid call-up launch and spacecraft capabilities.
- Completed the construction of a high-volume manufacturing line for satellite reaction wheels capable of producing up to 2,000 units per year, with production now underway for an undisclosed satellite mega constellation customer.
Since October 1, 2022 Rocket Lab also:
- Reached a new Company record of nine successful orbital missions within a calendar year.
- Successfully launched two dedicated Electron missions, including an environmental monitoring satellite through General Atomics and the U.S. Space Force’s Space Systems Command for the National Oceanic and Atmospheric Administration (NOAA), plus a climate monitoring satellite for the Swedish National Space Agency via OHB Sweden. The missions took Rocket Lab’s total Electron launch tally to 32 missions.
- Marked the arrival of the Electron rocket at Launch Complex 2 (LC-2) in Virginia as Rocket Lab prepares for the Company’s first mission from U.S. soil. Electron processing is underway and launch preparations have begun for the inaugural LC-2 launch scheduled for December 2022.
- Signed a contract with an undisclosed satellite constellation operator for another mission from LC-2 in January 2023, weeks after the expected first Electron lift-off from LC-2. The short turnaround between missions is expected to be one of the fastest launch turnarounds by an active orbital small launch provider from U.S. soil.
- Secured our second award to provide motorized lightbands to Lockheed Martin for the U.S. Department of Defense’s Tranche 1 Tracking Layer (T1TL) constellation, with the combination of the Q3 and Q4 awards representing the largest program award for satellite separation systems in Rocket Lab history, totalling over $14m.
- Selected by NASA to build solar panels for the agency’s CADRE mobile robot program to build and operate shoebox sized mobile robots that will explore hard-to-reach places on Moon, Mars, and beyond.
Fourth Quarter 2022 Guidance
For the fourth quarter of 2022, Rocket Lab expects:
- Revenue between $51m and $54m
- Launch Services revenue of approximately $17m
- Space Systems revenue of between $34m to $37m
- GAAP Gross Margins between 5% to 7%
- Non-GAAP Gross Margins between 16% to 18%
- GAAP Operating Expenses $39m to $41
- Non-GAAP Operating Expenses $28m to $30m
- Expected Interest expenses (Income), net $1m expense
- Adjusted EBITDA loss of $12m to $16m
- Basic Shares Outstanding 474m
(Source: BUSINESS WIRE)
10 Nov 22. Kromek Group plc, (“Kromek” or the “Group”). Kromek awarded US nuclear security contract. Repeat order worth $1.3m to supply D3M radiation detectors delivered. Kromek (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announces that it has received, and delivered, a contract worth $1.3m from a US customer for the Group’s D3M wearable radiation detector. This contract is a repeat order, with Kromek having now delivered D3M orders worth $2.6m to this customer in the last six months.
Kromek’s D3M is a high-performance combined gamma/neutron personal radiation detector that helps guard against the threat of nuclear terrorism and the illicit movement of nuclear materials. It is wearable, unobtrusive, hands-free and continuously scans for radiation with a six-times lower false alarm rate than the standard of the American National Standards Institute.
Dr Arnab Basu, Chief Executive Officer of Kromek, said: “We are pleased to win this contract for our D3M radiation detectors. This repeat order affirms the strength of our nuclear radiation detection technology and highlights the growing market demand for these products. It is also reflective of the strong trading that we experienced in the first half of our FY 2023 year, and we expect to report revenue growth of approximately 45% for the six months to 31 October 2022. This, combined with the momentum that we are seeing, particularly in the CBRN segment, underpins the Board’s confidence in our prospects for the future.”
08 Nov 22. Palantir Technologies’ Q3 2022 revenue up 22% to $478m.
The company noted that the increase in revenue was mainly driven by growth in the US business. US-based software firm Palantir Technologies has posted a 22% year-on-year (YoY) growth in revenues to $478m in the third quarter (Q3) of 2022. The performance was attributed to a sharp rise in revenue primarily in the US market.
Palantir’s adjusted income from operations stood at $81.25m, reflecting a 17% margin. In the three-month quarter that ended on 30 September 2022, cash from operations increased 10% to $47m. Adjusted free cash flow was $37m, marking positive performance for the eighth consecutive quarter.
The quarterly adjusted net income was $16m while adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) was $87m, representing an 18% margin.
The company’s total contract value for the third quarter of this year was $1.3bn. This was driven by growth in the firm’s defence business in the US.
Palantir’s businesses across the US reported a total revenue of $1.11bn on a trailing twelve-month (TTM) basis. The figure represented a 38% jump from $808m reported a year ago. Of this, US commercial revenue increased 53% YoY, and government revenue was up 23% from the previous year.
The firm’s commercial customer count in the US market also grew 124% YoY to 132 customers, compared to 59 in Q3 last year.
Palantir Technologies co-founder and chief executive officer Alexander Karp said: “We beat expectations for revenue growth this quarter and expect to have a strong finish to the year, even in the face of the continued strength of the US dollar.
“Our company is emerging as a dominant provider of foundational data platforms, generating approximately half a bn dollars in revenue every quarter.
“We have crossed the bn-dollar mark in the United States market alone, more than doubling our business in two years.”
Despite a negative $6m currency impact, the company reiterated their full-year revenue outlook to be between $1.9bn and $1.902bn.
It expects adjusted income from operations to be in the range of $384m to $386m. (Source: army-technology.com)
10 Nov 22. Interim report after nine months of 2022: Rheinmetall increases sales and continues to improve operating result and margin.
- Consolidated sales increased by around 6.5% to €4.1bn
- Operating result improved by around 9.0% to €323m
- Operating margin of 7.9% exceeds previous year’s level of 7.7%
- Significant growth in orders intake within the Group
- Annual forecasts for 2022 confirmed
The Düsseldorf-based Rheinmetall Group is entering the final quarter of fiscal 2022 with sales growth, increased profitability and a further improvement in the operating result. Overall, Rheinmetall is seeing an increase in orders and confirms the current annual forecasts for the expected sales growth and operating margin for the Group.
Armin Papperger, Chief Executive Officer of Rheinmetall AG, says of the company’s performance: “After nine months, we are still on track to achieve our annual forecasts. We are growing in all divisions and increasing profitability throughout the Group. The operating result has set a new record after three quarters. And we also expect a particularly strong final quarter this year – especially in the military business, where we are benefiting now and in the next few months from substantial orders as a result of increased defence budgets. With our civilian products, we are seeing growing numbers of orders for components and systems for drive electrification. This shows that we are well on the way to mastering the transformation of the industry to full electric mobility.”
Rheinmetall Group: Sales growth of 6.5%
Consolidated sales increased by €249m or 6.5% year-on-year to €4,089m in the first three quarters of 2022 (previous year: €3,841m).
The operating result increased to €323m and was thus €27m or around 9.0% above the previous year’s figure of €297m. This improvement is based on sales growth in the high-margin Weapon and Ammunition division and the margin improvement in the Vehicle Systems division. Strict cost management also had a positive effect. The result in Others was negatively affected by the costs of the IT transformation. The operating margin rose to 7.9% (previous year: 7.7%).
As a result of special items, earnings per share from continuing operations decreased year-on-year from €4.16 to €3.93 in the first three quarters of fiscal 2022.
Adjusted for these special items, earnings per share from continuing operations amounted to €4.26 as at September 30, 2022 (previous year: €4.00). The largest negative special item was attributable to the market valuation of securities held for trade as a result of the currently highly volatile capital market situation.
Vehicle Systems: Further improvement in operating margin
At €1,320m, sales in the Vehicle Systems division in the first three quarters of 2022 were €16 m or 1.2% higher than the previous year’s figure. The order intake decreased by €1,614m as against the prior-year figure to €842m. The previous year’s figure was above average due primarily to large single orders (Challenger 2 for Great Britain, Puma modernization and armored engineering vehicle for the German armed forces). Contrary to initial expectations, no major orders from Germany in particular have yet been received in the third quarter of 2022. At around €10.0bn, the order backlog as at September 30, 2022, was down €486m or 4.6% year-on-year.
The operating result improved from €104m to €120m in the first three quarters of 2022. The operating margin of 9.1% exceeded the previous year’s level of 8.0%. This positive development was attributable to a better product mix and strict cost management.
Weapon and Ammunition: New order intake record
The Weapon and Ammunition division generated sales of €849m in the first three quarters of 2022, up €149m or 21.4% on the figure for the previous year. The high increase in sales mainly resulted from munitions and propellant deliveries to international customers. In the first three quarters of 2022, the order intake increased to a record level of €2,002 m (previous year: €752m). A munitions order from Hungary and an order for propellants from the Netherlands particularly contributed to this increase. The order backlog increased by €1.3 bn or 47.2% to €4.0 bn as at September 30, 2022 (previous year: €2.7 bn).
The operating result improved by €35 m or 47.7% to €107m in the first three quarters of 2022. This positive development was attributable to the sales increase, a profitable product mix and higher income from investments. The operating margin was significantly increased from 10.4% to 12.6%.
Electronic Solutions: Order backlog climbs to €2.7bn
The Electronic Solutions division increased its sales in the first three quarters of 2022 by €84m to €642m (previous year: €558m); this equates to growth of 15.1%. The order intake increased by €150m or 21.6% year-on-year to €845m. Major new orders in the first nine months of 2022 related to combat helmets for the German armed forces and numerous smaller projects. On September 30, 2022, the order backlog amounted to €2.7bn, up 9.1% on the previous year’s figure (previous year: €2.4bn).
As a result of the sales growth, the operating result rose by €2m to €50 m in the first three quarters of 2022 (previous year: €48m). The operating margin decreased to 7.7% (previous year: 8.6%), which is primarily attributable to the acquisition of the activities of the drone manufacturer EMT and the resulting start-up losses.
Sensors and Actuators: Booked business increased by around 40%
Sales in the Sensors and Actuators division climbed by €38m or 3.8% year-on-year to €1,045 m in the first three quarters of 2022. The sales growth resulted primarily from currency effects and increased call-offs in Europe and Asia. In the first nine months of fiscal 2022, booked business increased by 40.7% to a volume of €2,083m (previous year: €1,48 m). A major order for electrification components of €255m made a particular contribution to this in the third quarter of 2022.
The operating result fell by €8m to €66m in the first three quarters of 2022 (previous year: €74m). The decline is particularly attributable to increased raw material prices, which can only be passed on to customers after a delay. The operating margin fell to 6.3% (previous year: 7.4%).
Materials and Trade: Significant sales growth
The Materials and Trade division increased its sales to €562m in the first three quarters of 2022, thus exceeding the previous year’s level by €77m or 15.8%. This sales growth was particularly attributable to strong growth in aftermarket activities. Booked business of €584m was generated in the first nine months of fiscal 2022. This represents an increase of 13.4% compared to the same period of the previous year (€515m).
The operating result of the Materials and Trade division increased by €7m or 18.9% to €45m in the first three quarters of 2022. The operating margin rose to 8.1% (previous year: 7.9%). The increased sales and the improvement in the earnings of the Chinese joint venture accounted for using the equity method had a positive effect.
Outlook: Current annual forecasts confirmed
Despite the known macroeconomic uncertainty with regard to economic development in Germany and in the international market environment, Rheinmetall is confirming the current annual forecasts after nine months of fiscal 2022.
In recent months, Rheinmetall has used strict cost control, active provisioning, and the mitigation of risks on the energy and procurement markets as measures to successfully counter the general trend of inflation and the continuing disruptions on the markets for raw materials and primary products.
Not least in light of these timely decisions and largely already implemented measures, the Group continues to expect organic sales growth of around 15% in the current fiscal year and anticipates an improvement in the operating result and an operating margin of over 11%.
10 Nov 22. HENSOLDT AG continues profitable growth in third quarter and confirms guidance.
- Revenue grows by a significant 29.5 percent to EUR1.1bn in first nine months of 2022
- Order backlog consistently high at EUR5.372bn
- Adjusted EBITDA improved by 14.3 percent to EUR126m
- Guidance for full year 2022 confirmed
HENSOLDT AG (“HENSOLDT”) continued its growth trajectory in the first nine months of 2022 and further strengthened its strategic position in the European security and defence industry.
The company recorded double-digit revenue and earnings growth in the first three quarters. HENSOLDT’s revenue increased by 29.5 percent year on year to EUR1.1 bn (9M 2021: EUR850m). Adjusted EBITDA improved to EUR126m (9M 2021: EUR110m). Continued high customer demand for the sensor specialist’s products and solutions is reflected in a strong order intake of EUR1.377bn. Order intake in the prior year was EUR2.821bn, due to the milestone order for the delivery of the PEGASUS electronic signals intelligence and airborne reconnaissance system worth around EUR1.25bn. In the current financial year, the order backlog amounts thus EUR5.372bn (previous year: EUR5.092bn).
Thomas Müller, CEO of HENSOLDT AG: “Our new orders for the Eurofighter and the F126 frigate prove that we are setting the right priorities in our business. With our TRML-4D multifunction radar, we, together with Diehl Defence and Airbus, supported the delivery of the IRIS-T SLM air defence system to Ukraine, thus enabling the defence of Ukrainian cities with state-of-the-art technology. Thereby, we are contributing significantly to the protecting of the Ukrainian civilian population. This is yet further proof of the huge importance of a strong and innovative industrial base in the European defence sector.”
Christian Ladurner, CFO of HENSOLDT AG: “In the first three quarters, we have successfully continued our path and are delighted to report an increase in revenue of almost 30 percent. This puts us right on track to achieve our targets for the current financial year and to make HENSOLDT even stronger. In view of the current inflationary trend, we are focusing more closely than ever on the cost side at HENSOLDT to secure our strong profitability for the long term and to economically pave the way for innovation. We are pleased to report a further reduction in our net financial leverage over the past nine months compared with the prior-year period. In addition, we were able to repay our revolving credit facility, which was fully drawn in 2020, by a further EUR100m in October 2022.”
Strong order development
Order intake in the year to date notably included a service contract for the Eurofighter worth EUR270m and orders to equip the F126 frigate with TRS-4D radars. In September 2022, HENSOLDT also won an order in the Sensors segment for Mk1 radars under the Eurofighter Halcon programme. Total order intake in the first three quarters amounted EUR1.377bn, compared with EUR2.821bn in the prior-year period which was bolstered by the milestone order for delivery of the PEGASUS electronic signals intelligence and airborne reconnaissance system worth around EUR1.2bn.
Significant revenue growth and sustainable profitability
The significant increase in adjusted EBITDA (EUR126m; 9M 2021: EUR110m) primarily resulted from volume and project mix effects. At the same time, the adjusted EBITDA margin of 11.5 percent is moderately lower than in the prior-year period (9M 2021: 13 percent). This was mainly a result of slimmer project margins on lower value-added revenue. Despite the on-scheduled launch of major projects out of the very large order backlog, adjusted free cash flow before interest and taxes up to the end of the third quarter was on a similar level to the prior year at EUR-49m (9M 2021: EUR-48m).
Given the company’s successful business performance in the first three quarters, HENSOLDT has confirmed its full-year guidance for all key performance indicators. The Management Board expects strong revenue growth. Adjusted EBITDA is anticipated to increase sharply in the 2022 financial year. Management expects a sharp drop in order intake due to the very large order intake in the previous year. Overall, management forecasts a book-to-bill ratio of between 1.1 and 1.2.
The turning point in security policy announced by the Federal Government of the Federal Republic of Germany, the main customer of HENSOLDT, and the associated EUR 100 bn special fund hold major opportunities for HENSOLDT. As the medium and long-term implications of this cannot yet be reliably estimated, the HENSOLDT Group is analysing them on an ongoing basis. There was no significant impact on HENSOLDT’s project business in the first nine months of 2022. Nevertheless, the action areas specified by the German government are becoming increasingly clearly defined for HENSOLDT, thus paving the way for more stable planning.
HENSOLDT will provide more specific information on the expectations for medium to long-term business performance at its Capital Markets Day in London on 14 December 2022.
10 Nov 22. QinetiQ Group plc, a leading science and engineering company operating primarily in the defence, security and critical infrastructure markets, today announces its Interim Results for the six months to 30 September 2022.
Contributing to global and national security
- Strong and consistent operational performance across the Group; orders up 18%, revenue up 12% and underlying operating profit up 39%
- Year-on-year revenue growth: UK up 6%, US up 26% and Australia up 22%. US performance has been particularly strong driven by new leadership team
- Increasing revenue guidance and will deliver profit in-line with FY23 expectations
- Underlying EPS up 41%; 2.4p interim dividend declared – one third of FY22 dividend
- On-track to deliver five year multi-domestic growth ambition; acquisitions of Avantus (US) and Air Affairs (Australia) will deliver a major step change
- As a business, QinetiQ’s purpose and strategy has never been more relevant
Steve Wadey, Group Chief Executive Officer of QinetiQ said:
“World events continue to reinforce the vital importance of a technologically advanced defence industry to society and the needs of our customers for differentiated solutions, aligned with our strategy. I am immensely proud of how our people have supported our customers at this time of need: we are fulfilling our company purpose and contributing to global and national security.
Our first half results demonstrate the strong demand we continue to see from our customers for our distinctive offerings. We have delivered good programme execution and delivery across all our major contracts. Our home countries of UK, US and Australia have all achieved significant organic growth and the US has performed particularly well, delivering improved and consistent performance.
We have also secured two strategically significant acquisitions in the US and Australia, Avantus and Air Affairs respectively, which demonstrate the disciplined execution of our growth strategy and capital allocation policy. We have increased our investment in our people and capability for the future to enable our long-term growth, as we continue to build an integrated global defence and security company. We are on-track to deliver our 5 year strategic growth ambition and enhanced shareholder returns.”
Strong and consistent operational performance across the Group
– Orders up 18%, revenue up 12% and underlying operating profit up 39%
– On an organic constant currency basis, and excluding the impact of the write-down in FY22 half year results: Orders up 11%, revenue up 8% and underlying operating profit up 7%
– Consistently strong cash conversion at 106% cash conversion pre-capex
– Statutory operating profit £100.1m, assisted by FX gain on Avantus acquisition
– Underlying EPS up 41%; 2.4p interim dividend declared – one third of FY22 dividend
Disciplined execution of multi-domestic growth strategy
– Strong programme delivery across all major contracts
– Good order intake across the Group at c.£800m
– Increased investment in people and capabilities for the future
– Step-change through strategic acquisitions in the US and Australia
On-track to deliver five year strategic growth ambition; £2.3bn revenue at stable margins
– Increasing revenue guidance and will deliver profit in-line with FY23 expectations
– Respond to increased demand for our distinctive offerings driven by threat environment
– Close Avantus and Air Affairs deals and execute integration plans
– Drive sustainable growth in our >£20bn addressable market
09 Nov 22. PAR Technology Corporation Announces 2022 Third Quarter Results.
- Total revenues increase 19.1% year-over-year from Q3 ’21
- Software Annual Recurring Revenues (ARR)(1) grew to $106.6m – a 29.2% increase from $82.5m reported in Q3 ’21
PAR Technology Corporation (NYSE: PAR) (“PAR Technology” or the “Company”) today announced its financial results for the third quarter ended September 30, 2022.
Summary of Fiscal 2022 Third Quarter
- Revenues were reported at $92.8m for the third quarter of 2022, a 19.1% increase compared to $77.9m for the same period in 2021.
- Net loss for the third quarter of 2022 was $21.3m, or $0.79 net loss per share, compared to a net loss of $31.9m, or $1.23 net loss per share reported for the same period in 2021.
- EBITDA for the third quarter of 2022 was a loss of $12.2m compared to a loss of $20.4m for the same period in 2021.
- Adjusted EBITDA for the third quarter of 2022 was a loss of $8.0m compared to an Adjusted EBITDA loss of $4.0m for the same period in 2021.
- Adjusted net loss for the third quarter of 2022 was $11.9m, or $0.44 adjusted diluted net loss per share, compared to an adjusted net loss of $9.3m, or $0.36 adjusted diluted net loss per share, for the same period in 2021.
Summary of Year-to-Date Financial Results
- Revenues were reported at $258.1m for the nine months ended September 30, 2022, a 28.3% increase compared to $201.3m for the same period in 2021.
- Net loss for the nine months ended September 30, 2022 was $55.8m, or $2.06 net loss per share, compared to a net loss of $50.2m, or $2.05 net loss per share reported for the same period in 2021.
- EBITDA for the nine months ended September 30, 2022 was a loss of $28.6m compared to a loss of $34.9m for the same period in 2021.
- Adjusted EBITDA for the nine months ended September 30, 2022 was a loss of $16.0m compared to an Adjusted EBITDA loss of $12.9m for the same period in 2021.
- Adjusted net loss for the nine months ended September 30, 2022 was $28.9m, or $1.06 adjusted diluted net loss per share, compared to an adjusted net loss of $26.0m, or $1.06 adjusted diluted net loss per share, for the same period in 2021.
The Company’s key performance indicators ARR and Active Sites(1) are organized into three product groupings: Guest Engagement (Punchh and MENU), Operator Solutions (Brink POS, PAR Pay, and PAR Payment Services), and Back Office (Data Central).
Highlights of Guest Engagement – Third Quarter 2022(1):
- ARR at end of Q3 ’22 totaled $57.5m
- New store Activations in Q3 ’22 totaled 5,698 sites
- Active Sites as of September 30, 2022 totaled 67,104 restaurants
Highlights of Operator Solutions – Third Quarter 2022(1):
- ARR at end of Q3 ’22 totaled $38.9m
- New store Activations in Q3 ’22 totaled 985 sites
- Bookings in Q3 ’22 totaled 1,137 sites
- Active Sites as of September 30, 2022 totaled 18,572 restaurants
Highlights of Back Office – Third Quarter 2022(1):
- ARR at end of Q3 ’22 totaled $10.2m
- New store Activations in Q3 ’22 totaled 367 sites
- Active Sites as of September 30, 2022 totaled 6,668 restaurants
PAR Technology CEO, Savneet Singh commented, “The continued growth in our subscription services software revenues positions our Company well to deliver strong financial performance for the next few years. Each time we add a new customer it opens up the opportunity for a long term relationship where we can introduce our new products and increase long term value to the customer and life time value to PAR. These additional customer opportunities and added revenues related to our new unified experience products will allow us to grow revenue while leveraging the prior investments we had made. That leverage will drive incremental operating profits and allow our Company to exit FY 2023 cash flow positive.” (Source: BUSINESS WIRE)
09 Nov 22. Terran Orbital Reports Third Quarter 2022 Financial Results Including Another Quarter of Record Revenue. Terran Orbital Corporation (NYSE: LLAP) (“Terran Orbital” or the “Company”), a leading manufacturer of small satellites primarily serving the United States aerospace and defense industry, today announced financial results and operational highlights for the three and nine months ended September 30, 2022.
Post 3rd Quarter Closing Highlights
- Announced a $100m investment from strategic partner Lockheed Martin
- Signed a new Strategic Cooperation Agreement (SCA) with Lockheed Martin extended into 2035
- On track to deliver Space Development Agency’s (“SDA”) Transport Layer Tranche 0 satellites by end of Q4
Third Quarter 2022 Highlights
- Generated record revenue of $27.8m, a 171% increase compared to the third quarter of 2021
- Backlog of $198.0 m as of September 30, 2022, up 168% since December 31, 2021
- Increased headcount to greater than 440, up approximately 78% since the beginning of the year
- Net loss of $27.4m improved from the net loss of $32.3m for the second quarter of 2022
Marc Bell, Co-Founder, Chairman & CEO, said, “We are thrilled with the performance of our team this quarter as our strong execution drove another quarterly revenue record. We are especially gratified by the vote of confidence from our strategic partner Lockheed Martin as demonstrated by their $100 m investment and new thirteen-year Strategic Cooperation Agreement. This investment from the nation’s largest defense contractor validates that Terran Orbital is today focused on the right markets. Furthermore, it satisfies the Company’s near-term capital requirements to deliver on our business plan.”
Results for the Third Quarter of 2022
Total revenue for the third quarter of 2022 was $27.8m, up 171% compared to $10.3m in the same period in the prior year. The increase in revenue was primarily due to the continued and increased level of progress made in satisfying our customer contracts.
Cost of sales for the quarter was $27.8m compared to $8.8m in the same period in the prior year. The increase in cost of sales was primarily due to an increase of $15 m in direct costs incurred in satisfying customer contracts, an increase in share-based compensation expense following the Tailwind Two merger, and an increase of $584 thousand related to reserves for anticipated losses on contracts. Cost of sales included an estimated $1.9m negative impact due to EAC adjustments.
Gross profit was $37 thousand, compared to $1.5m in the same period in the prior year. Excluding share-based compensation and depreciation and amortization included in cost of sales, Adjusted Gross Profit(1) was $3.2m, compared to $2.1m in the same period in the prior year. EAC adjustments negatively impacted gross profit and Adjusted Gross Profit by an estimated $2m, including approximately $100 thousand from revenue and $1.9m from cost of sales.
Selling, general and administrative expenses were $24.7m in the third quarter of 2022, compared to $11.4m in the same period in the prior year. The increase was primarily due to an increase in share-based compensation expense as a result of the Tailwind Two merger, an increase in research and development expense, increases in salaries and wages, facility costs related to capacity expansions, and other operating costs, partially offset by a decrease in accounting and legal fees.
Our net loss for the quarter was $27.4m compared to a net loss of $12.4m for the same period in the prior year. In addition to the items discussed above, net loss increased as a result of higher interest expense and financing costs related to financing transactions, offset by a decrease in fair value of warrant and derivative liabilities following the Tailwind Two Merger.
Adjusted EBITDA(1) was $(13.9)m compared to $(8.7)m in the same period in the prior year. The decrease in Adjusted EBITDA was primarily due to an increase in selling, general, and administrative expenses related to salaries and wages, research and development, facility expenses, and other operating costs as a result of our growth initiatives, partially offset by an increase in Adjusted Gross Profit.
Backlog represents the estimated dollar value of executed contracts, including both funded (firm orders for which funding is authorized and appropriated) and unfunded portions of such contracts, for which work has not been performed.
As of September 30, 2022, the Company’s backlog totaled approximately $198m, a 168% increase since December 31, 2021, driven primarily by the Company’s major contract awards during the year including an award to build 42 satellites for the SDA Tranche 1 Transport Layer. (Source: BUSINESS WIRE)
09 Nov 22. BitNile to Distribute Approximately 7m Shares of Giga-tronics to Its Stockholders. BitNile Holdings, Inc. (NYSE American: NILE), a diversified holding company (“BitNile” or the “Company”), announced that its subsidiary Giga-tronics Incorporated (“GIGA”), a publicly-traded holding company currently delivering solutions tailored and selected to enable mission-critical applications for customers in defense, aerospace, medical, and transportation sectors, intends to complete a distribution of approximately 7m shares of GIGA’s common stock beneficially owned by BitNile (the “GIGA Shares”) as a dividend payable to the stockholders of BitNile common stock.
The distribution of the 7m GIGA Shares will occur as soon as practicable after GIGA has obtained the requisite regulatory approvals therefor, and in compliance with US federal securities laws. BitNile anticipates that, upon completion of the distribution, the BitNile shareholders as of the record date to be in conjunction with the distribution, will be able to sell the GIGA Shares from time to time in either public or privately negotiated transactions.
On September 8, 2022, the Company announced the closing of a Share Exchange Agreement with BitNile, GIGA and Gresham Worldwide, Inc. (“Gresham”), providing for GIGA’s reverse acquisition of Gresham from BitNile. The transaction combined GIGA, a producer of sophisticated RADAR and electronic threat emulation systems and radio frequency filters, with Gresham, a global provider of proprietary, purpose-built electronic solutions to militaries and leading defense companies around the world in the areas of RF devices, power electronics, displays, automated test and missile launch. The companies expect the transaction to generate synergies that will enable them to significantly enhance their position in the rapidly growing market for electronic countermeasures and RF solutions; driven by a heightened global awareness of the importance of electromagnetic spectrum superiority. Combined, the companies have over 500 total customers, including more than 40 tier-1 defense industry prime contractors and 20 global defense ministry programs.
On September 9, 2022, the Company announced its intention to spin off its holdings in its various subsidiaries, including GIGA.
For more information on BitNile and its subsidiaries, BitNile recommends that stockholders, investors, and any other interested parties read BitNile’s public filings and press releases available under the Investor Relations section at www.BitNile.com or available at www.sec.gov.
About BitNile Holdings, Inc.
BitNile Holdings, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, BitNile owns and operates a data center at which it mines Bitcoin and provides mission-critical products that support a diverse range of industries, including oil exploration, defense/aerospace, industrial, automotive, medical/biopharma, karaoke audio equipment, hotel operations and textiles. In addition, BitNile extends credit to select entrepreneurial businesses through a licensed lending subsidiary. BitNile’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; www.BitNile.com. (Source: BUSINESS WIRE)
08 Nov 22. Triumph Group, Inc. (NYSE: TGI) (“TRIUMPH” or the “Company”) today reported financial results for its second quarter of fiscal 2023, which ended September 30, 2022.
Second Quarter Fiscal 2023
- Net sales of $307.6m
- Operating income of $132.2m with operating margin of 43%; adjusted operating income of $30.4m with adjusted operating margin of 10%
- Net income of $106.5m, or $1.63 per diluted share; adjusted net income of $4.8m, or $0.07 per diluted share
- Cash flow used in operations of $19.3m; free cash use of $23.5m
Fiscal 2023 Guidance
- Net sales of approximately $1.3bn
- GAAP earnings per diluted share of $1.66 to $1.86 and Adjusted earnings per diluted share of $0.40 to $0.60, up from prior guidance due to final pension assumptions
- Cash used in operations of ($30.0)m to ($40.0)m, free cash use of ($60.0)m to ($70.0)m
“TRIUMPH generated double-digit organic sales growth in our continuing operations driven by improving commercial OEM production rates and expanded MRO demand,” said Dan Crowley, TRIUMPH’s chairman, president and chief executive officer. “We continue to mitigate supply chain constraints and partner with our customers and suppliers to support their accelerating production and aftermarket demands. While these headwinds required us to hold slightly higher levels of working capital in the first half of the year, we are on track to positive free cash flow in the second half of FY23 and beyond. With an expanding and profitable backlog, enhanced pricing from recent contract extensions and a lower cost structure, TRIUMPH is well positioned to benefit from continued strength across nearly all our end markets.”
Second Quarter Fiscal 2023 Overview
Excluding divestitures and exited programs, sales for the second quarter of fiscal 2023 were up 13% organically from the prior year period as increases in commercial narrow-body production and commercial MRO offset decreased military rotorcraft volume.
Second quarter operating income of $132.2m includes $2.2m of restructuring costs related to the exit of an aftermarket product line and $103.9m gain on sale of assets and businesses, primarily from our Stuart manufacturing operations. Net income for the second quarter of fiscal 2023 was $106.5m, or $1.63 per diluted share primarily due to these items above. On an adjusted basis, net income was $4.8m, or $0.07 per diluted share.
TRIUMPH’s results included the following:
The number of shares used in computing diluted earnings per share for the second quarter of 2023 was 65.3m.
Backlog, which represents the next 24 months of actual purchase orders with firm delivery dates or contract requirements, was $1.57bn, up 11% from fiscal year end, after adjusting for the impact of the Stuart divestiture, primarily on commercial narrow body platforms.
For the second quarter of fiscal 2023, cash flow used in operations was $19.3m.
The Company’s outlook reflects adjustments detailed in the attached tables.
Based on expected aircraft production rates, and the resulting demand on each of our facilities, the Company expects net sales for fiscal 2023 will be approximately $1.3 bn.
The Company expects GAAP fiscal 2023 earnings per diluted share of $1.66 to $1.86 and adjusted earnings per diluted share of $0.40 to $0.60, up from prior guidance due to final pension assumptions.
The Company expects fiscal 2023 cash used in operations of ($30.0)m to ($40.0)m, approximately $30.0 m for capital expenditures, resulting in expected free cash use of ($60.0) m to ($70.0) m.
TRIUMPH, headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators.
More information about TRIUMPH can be found on the Company’s website at www.triumphgroup.com. (Source: PR Newswire)
08 Nov 22. Axon Reports Record Q3 2022 Revenue of $312m, Up 34% YOY, Raises Full-Year Outlook.
- SaaS strength drives Axon Cloud revenue growth of 51%; Annual Recurring Revenue of $403m, up 40% YOY
- EPS of $0.17, Non-GAAP EPS of $0.60, Adjusted EBITDA of $68m at 21.7% margin
Customer enthusiasm across our product suite, including notable strength in our Software & Sensors business, drove record quarterly revenue of $312m, up 34% year over year. Continued momentum on the top line, sequential gross margin improvement and the inherent leverage in our business model supported net income of $12m and allowed us to generate Adjusted EBITDA of $68 m, at 21.7% margin.
Our demand backdrop remains robust and we have tremendous confidence in our sustainability of pipeline, which is supported by our mission-critical product offerings and long-term contracts. Importantly, our highly recurring, stable business model benefits our company as well as our customers, who see us as their trusted technology partner. We are especially pleased that our highest tier integrated bundle is demonstrating the highest adoption rates this year. Year to date, more than half of customers who chose Officer Safety Plan selected Officer Safety Plan 7+ Premium, which is listed at $249 per officer per month and includes the TASER 7, Axon Body 3 camera, and more software features than any other bundle. Even with this healthy demand, the penetration rate of our highest tier bundles is less than 15% relative to our potential state and local law enforcement install base (1), signifying that our domestic business enjoys wide runway for continued growth.
Our shareholders can expect Axon to continue to build upon this solid foundation of customer trust, signing long-term contracts with future deliverables, and introducing more and broader enterprise bundles as we build the premier operating system for public safety. We are emboldened by our market leadership position, and feel confident in the sustainability of our long-term growth profile.
(1) Based on a potential domestic state and local government install base of 712,112 sworn officers, according to data from the U.S. Census Bureau’s State and Local Employment and Payroll Data as of March 2021.
Brittany Bagley, CFO & CBO
In September, Brittany joined Axon as Chief Financial Officer and stepped into the newly created role of Chief Business Officer. Brittany is a seasoned business and finance leader with experience both as an operator and as a board member. She has hit the ground running over the past 40 days, conducting deep dives into key metrics, taking a strategic and holistic lens to operations and meeting customers and partners at the IACP conference. By way of background, Brittany is a current member of the board of directors of self-driving technology company Aurora Innovation (NASDAQ: AUR), where she also serves as Audit Committee Chair and serves on the compensation committee. Prior to joining Axon, she served for 3.5 years as Chief Financial Officer at Sonos (Nasdaq: SONO), overseeing traditional finance functions, including investor relations and M&A, as well as real estate and information technology. From 2017 to 2019, Brittany served on the Sonos board of directors, where she chaired the compensation committee. Over the course of 12 years on KKR’s Americas Private Equity team, she held various investing roles including as a Managing Director of the technology team. At KKR, she also served on numerous boards.
“Axon is uniquely positioned to deliver strong growth and drive long-term profitability with its model of high-margin software growth that drives annual recurring revenue. I look forward to partnering with this great team and building upon their outstanding track record of execution and delivering shareholder value.” — Brittany Bagley, CFO & CBO
Mission & vision update
In October, Axon returned to the International Association of Chiefs of Police (IACP) annual conference, the largest law enforcement event of the year and a key customer-facing event for us. This year, we announced that Axon is joining forces with law enforcement and community leaders in a moonshot goal to cut gun-related deaths between police and the public in half by 2033.
In announcing this moonshot goal, Axon pointed to the relevance of our R&D product roadmap of hardware devices and SaaS software solutions. We are committed to investing in the technology, training and data that will help achieve better outcomes and deepen trust between law enforcement and the communities they protect and serve. Our product roadmap includes accelerated advancements in non-lethal and de-escalation tools and training, next-generation cameras and evidence capture devices, real-time response and communications tools, community impact, engagement and feedback solutions, and more comprehensive and actionable use of force and response to resistance reporting.
Executing on our strategic vision
Relentless product innovation
We continue to invest in new product development in support of our ultimate mission to protect life, as well as in support of our long-term revenue target CAGR of 20%+.
Five key product developments since our last update include:
Never Miss a Moment is a framework that Axon has introduced to help agencies and communities ensure that critical moments are always captured and stored. The four components to never missing a moment are:
- Reliable cameras — It’s important to capture points of view from multiple sources. We do this from officers via Axon Body 3 cameras; from vehicles via Axon Fleet 3 in-car cameras; from drones via Axon Air; and from fixed cameras.
- Axon Performance software — Agencies set their own policies on camera usage, and Axon develops software to help agencies manage policy compliance. Axon Performance allows agencies to see baseline camera activation rates down to the officer level and incentivizes compliance while also enabling performance coaching, supervisor alerts, and more. In the first year of using Axon Performance, agencies tend to see dramatic improvement in camera usage — ensuring cameras are recording when they are supposed to. We believe that Axon Performance has helped at least 160 agencies increase their body camera activation rates this year alone.
- Compliance safeguards — Axon designs software and hardware tools to auto-activate cameras, which is useful in myriad situations, especially when officers are too occupied to start recording. We built the Axon Signal product line to drive camera activation rates when certain incidents occur — such as the removal of a firearm from its holster, or the activation of a TASER device. We also offer programmatic integrations with computer aided dispatch systems, which allows remote camera activation and programmable geofencing, so cameras can automatically activate when officers arrive on scene. These safeguards always come with strict controls to preserve officer privacy and autonomy.
- Final failsafe —In the rare, rapidly unfolding and high-pressure scenarios where all efforts to follow camera activation policies may fail, Axon offers a failsafe called Video Recall. This function allows the agency to enable a small and specialized set of authorized users to forensically retrieve “missed” video from an Axon Body 3 camera when the setting is turned on. This feature works while providing careful controls and strict privacy protection.
Axon Investigate adds a valuable tool to our suite of digital evidence management solutions. Our investments in this software support our ultimate goal of providing an end-to-end solution for every piece of an agency’s digital evidence, not just body camera video, from capture to courtroom.
- Video is the most prolific source of evidence available to investigators, but only when played correctly. While many commonly available playback and conversion tools— including sometimes even those created by CCTV companies for their own files— unintentionally alter or otherwise incorrectly play evidence files, Axon Investigate secures the forensic integrity of each video clip regardless of its source, enabling investigators to protect truth.
- Axon Investigate is built by a team of certified forensic video analysts and ensures that investigators view and share accurate digital evidence that is ready for court. In fact, users can bring Axon Investigate into the courtroom and play full screen, zoomed or looped video evidence for the judge or jury.
- Axon Investigate is the result of our late 2021 acquisition of Occam Video Solutions and its flagship investigative software, iNPUT-ACE.
“Axon Investigate solved the issue we were facing with ease, this easily saved us many hours and added a layer of integrity we would not have had if we were forced to process the video another way.” — Captain James Evans of the Racine County Sheriff’s Office (Wisconsin)
My90 gains momentum, fostering community engagement. Axon acquired this community engagement tool last year, and it is quickly becoming a key addition to our solution suite. It allows customer agencies to automatically send short surveys about officer interactions, such as after a 911 response. It also collects candid feedback from officers to reduce burnout and support officer wellness. Resulting reports and analytics can be reviewed to bridge gaps and bank trust, winning positive reviews from several agencies.
“My90 is a great way to engage with our community to better understand how the public feels about interactions with our agency. Since deploying a trial of My90, we have collected over 3,000 responses in just over 2 months. We have the opportunity to review these results to gain valuable feedback on an ongoing basis from people we have just served.” — Chief Kevin Davis, Fairfax County Police Department
Axon Records continues to forge a steady and accelerating path toward market leadership, one deployment at a time. We have nearly 40 agencies with nearly 14,000 sworn officers live on Axon Records, including 12 agencies that are already using our product to fully replace their legacy records management system. The amount of custom work for each marginal customer continues to decline, while the number of simultaneous deployments increases. Indeed, we are seeing clear proof points that bundling Records with our higher-tier Officer Safety Plans is a go-to-market differentiator.
Axon Respond, the centerpiece of our real-time operations platform, also continues to demonstrate strong momentum. Respond paid licenses have expanded to more than 1,500 agencies, representing hundreds of thousands of connected Axon body cameras. Active usage across all Respond features continues to rapidly grow as well, helping supervisors be more aware of officer locations and be notified of critical events. Our customers tell us that Axon Respond video streaming dramatically enhances supervisors’ ability to support officers in the field, and some agencies are now using Axon Respond to enable dispatchers to view live video for every call for service, providing an extra set of eyes and additional safety for officers in the field. Growing usage of the tool demonstrates its utility to customers and supports future contract renewals, validates our selling motion of offering software bundles with integrated features, and seeds a pathway for our long-term ambitions to be a leader in real-time solutions for public safety.
Diversifying our customers and markets
We are diversifying into new markets by adding new types of customer profiles, or users, and by adding to our core customer base. We think of those core customers as falling into roughly four categories of funding sources: U.S. state and local governments, the U.S. federal government, international government customers, and commercial enterprises. Simultaneously, the types of customers who find value in our product offerings are expanding beyond law enforcement to include attorneys, fire and EMS personnel, corrections and the U.S. military.
U.S. federal government progress update
This year, we are seeing continued growth acceleration with U.S. federal customers. In the first three quarters of 2022, the federal government has booked contracts exceeding $200 m, with deliverables that extend over the next several years. This progress is the result of a growth initiative that Axon began in 2019, when we began establishing trusted relationships with agencies that are now finding value in our products, mission, and commitment to law enforcement and communities.
Over the past four years, Axon has established itself as a key partner to many of the federal offices that collectively employ about 137,000 federal civilian law enforcement agents(1), each with an agency that serves a unique mission. Axon’s compelling value proposition to the federal government includes our mission focus, our stability and reliability as a company that has been innovating since 1993, and our technology leadership building unique products to solve unique problems. In addition, to date, Axon remains the only FedRAMP-authorized digital evidence management system cloud service provider.
U.S. government adoption of body cameras and digital evidence management
Axon is working to support customers, helping them tackle difficult challenges and lead successful body camera programs, such as the Department of Homeland Security’s first-ever deployment of body cameras along the U.S. southern border. The evidence captured on those body cameras is managed in our FedRAMP-cloud environment.
Additionally, the U.S. Marshals Service, Drug Enforcement Administration (DEA) and the U.S. Park Police are expanding their body camera programs, including awarding Axon additional contracts this year.
In May 2022, the White House issued its Executive Order on Advancing Effective, Accountable Policing and Criminal Justice Practices to Enhance Public Trust and Public Safety. The order contained a key provision outlining a requirement for federal agencies to adopt body-worn camera policies.
Since then, the U.S. Department of Veterans Affairs (VA) became the first agency to award a contract and begin the process of instituting a new body camera program. The department signed a $60 m contract(2) with the potential to expand over time, showcasing both VA’s commitment to veterans and officers, as well as Axon’s ability to respond to the requirements of the federal market.
“Our mission is to deliver professional law enforcement and security services, and the protection of persons and property on VA campuses; as well as the buildings under the jurisdiction of the Department of Veterans Affairs. That includes ensuring the safety of our Veterans, their care givers and VA employees at all medical centers and clinics. By providing our police officers, detectives and special agents with real-time visibility and situational awareness, we ensure a safe environment for our Veterans across the healthcare system.” — Troy Brown, Director, VA Law Enforcement Services
U.S. government adoption of TASER devices
We are also seeing healthy interest in our less-lethal technology from myriad government customers. The U.S. Secret Service Uniformed Division, for example, recently awarded Axon a contract to deploy TASER 7. This represents the first Homeland Security agency — and the largest federal customer — to deploy TASER 7 less-lethal technology.
We expect more agencies to adopt Axon-provided capabilities and are pleased with our progress in supporting the U.S. federal government.
(1) Source: U.S. Department of Justice’s Bureau of Justice Statistics, Federal Law Enforcement Officers, 2020 – Statistical Tables published on September 2022
(2) Axon’s $60m indefinite delivery, indefinite quantity (IDIQ) contract with the VA includes a price schedule that allows for performance over a five-year period.
Summary of Q3 2022 results
- Quarterly revenue of $312m grew 34% year over year, led by our domestic business, which grew 37%, driven by demand for the premium versions of our products and bundles.
- Total company gross margin of 62% improved more than 100 basis points sequentially. Gross margin benefitted from our renewed agreement with Microsoft Azure, which was discussed in our last quarterly update, as well as demand for our premium software-heavy bundles.
- GAAP operating profit was $32m. Operating expenses for the quarter of $161m included $27m in stock-based compensation expenses.
- SG&A of $102m included $14m in stock-based compensation expenses.
- R&D of $59m included $13m in stock-based compensation expenses.
- Our quarterly net income of $12m, or $0.17 per diluted share, included $28m in stock-based compensation expenses and $11 m in net unrealized losses related to strategic investments and marketable securities.
- Non-GAAP net income was $44m, or $0.60 per diluted share.
- Adjusted EBITDA was $68m, supporting Adjusted EBITDA margins of 21.7%.
- Both Non-GAAP net income and Adjusted EBITDA exclude stock-based compensation expenses and net gains or losses related to our strategic investment portfolio.
- Operating cash flow of $41m supported free cash flow generation of $26 m and adjusted free cash flow generation of $31m. We define free cash flow as operating cash flow less capital expenditures and purchases of intangible assets. Adjusted free cash flow excludes campus investments.
- As of September 30, 2022 Axon had $371m in cash, equivalents and investments.
- Axon has zero funded debt.
Financial commentary by segment:
TASER segment revenue growth was driven by a significant customer shift from our legacy TASER products to the premium TASER 7, which has a higher average selling price and delivers a higher number of cartridges associated with the bundles.
- Sequential TASER segment gross margin drivers in the quarter included unfavorable purchase price variance on raw materials components, unfavorable product mix, including low-margin VR-hardware, slightly offset by sequential favorability in outbound freight costs. We see opportunities to improve TASER segment gross margin by continuing to drive manufacturing efficiency and improve fixed cost absorption as we grow.
- Axon Cloud revenue growth of 51% reflects strong domestic demand for our software-heavy premium integrated bundles and healthy momentum in our digital evidence management, productivity and real-time operations platforms.
- Axon Cloud gross margin of 74.1% included the benefit of our renewed agreement with Microsoft Azure, which was discussed in detail in our last quarterly update. Axon Cloud gross margin also includes the low-to-no margin professional services costs of teams who help our customers deploy Axon’s solutions. The software-only revenue in this segment, which is annually recurring and includes cloud storage and compute costs, has consistently exceeded our gross margin target of 80%.
- Sensors & Other revenue growth reflected domestic strength in our body camera business, including a favorable pricing mix, followed by strength in shipments of Axon Fleet in-car cameras.
- Sensors & Other gross margin was 43.3%.
- Annual Recurring Revenue (ARR) grew 40% year over year to $403m.
- Net revenue retention was 120% in the quarter, reflecting our ability to deliver additional value to our customers over time and de minimis attrition. We drive adoption of our cloud software solutions through integrated bundling. Our law enforcement agency customers often sign up for five to ten-year subscriptions. This SaaS metric purposely excludes the hardware portion of customer subscriptions.
- Total company future contracted revenue grew to $3.73bn. We expect to recognize between 15% to 20% of this balance over the next twelve months, and generally expect the remainder to be recognized over the following ten years. This metric is also known as “remaining performance obligations.”
- The percentage of TASER devices sold on a subscription was 63% in the quarter. As a reminder, Axon has been successfully transitioning its TASER hardware business into a subscription service in more mature markets and expanding into new markets where some initial sales are not on a subscription, with the intention of building subscription businesses in those markets over time.
The following forward-looking statements reflect Axon’s full year 2022 expectations as of November 8, 2022, and are subject to risks and uncertainties.
- Axon’s full year 2022 revenue expectation has improved to a range of $1.15bn to $1.16bn, reflecting approximately 34% year-over-year growth at the midpoint. Previously, Axon had guided to a range of $1.07 bn to $1.12bn, reflecting 27% year-over-year growth at the midpoint.
o Our guidance implies Q4 2022 revenue of $300m to $310m, representing 40% year-over-year growth at the midpoint.
- We now expect to deliver 2022 Adjusted EBITDA between $215m and $220 m, compared with our previous expectation that we would deliver Adjusted EBITDA of about $200 m.
o Our guidance implies Q4 2022 Adjusted EBITDA of $49m to $54m.
o We provide Adjusted EBITDA guidance, rather than net income guidance, due to the inherent difficulty of forecasting certain types of expenses such as stock-based compensation and income tax expenses, which affect net income but not Adjusted EBITDA. We are unable to reasonably estimate the impact of such expenses, if any, on net income. Accordingly, we do not provide a reconciliation of projected net income to projected Adjusted EBITDA.
- We expect stock-based compensation expense to be approximately $105 m for the full year. Because our stock-based compensation expense may vary based on changes in the probability of attaining certain operational or market capitalization metrics or attainment of such metrics and with changes in the expected or actual timing of such attainment, it is inherently difficult to forecast future stock-based compensation expense.
- We now expect adjusted free cash flow to come in above the midpoint of our previously communicated range of $125m to $145m. This range reflects our expectations for operating cash flow, minus our expected purchases of property and equipment (CapEx), excluding (adding back) investments made in our campus facility.
o Our adjusted free cash flow projections reflect the fact that we’ve been investing in inventory to support growth amidst a challenging supply chain environment.
o We now expect 2022 capital expenditures of $70m to $80m, compared with our previous range of $80m to $90m, as some investments have pushed into next year. This includes our unchanged expectations for net campus investments of less than $25m.
We remain confident in our long-term financial objective of profitably delivering a 20%+ topline CAGR, and delivering products that solve real-world problems, and benefit all of our stakeholders, including shareholders, customers and the public. Thank you for investing in our mission -The Axon team. (Source: PR Newswire)
08 Nov 22. Astronics Corporation Announces Third Quarter 2022 Preliminary Revenue and Orders.
- Preliminary third quarter revenue was $131m, below expectations due to supply chain challenges and program reschedules
- Preliminary third quarter bookings were $184m, driving another record backlog and demonstrating continued strong demand for the Company’s products
- Fourth quarter revenue is expected to be in the range of $140m to $150m and preliminary 2023 revenue is expected to be $640m to $680m
Astronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for global aerospace, defense and other mission critical industries, today announced preliminary revenue, orders and net loss, and provided an update on liquidity events.
Preliminary Revenue, Orders and Net Loss for Third Quarter 2022
Astronics’ preliminary revenue in the quarter was approximately $131m, up 18% compared with the prior-year period and up 2% over the trailing second quarter. Preliminary revenue was below earlier expectations due to a combination of supply chain constraints and program reschedules by customers. Approximately $112m of preliminary revenue was from the Aerospace segment and $19m from the Test segment.
Preliminary bookings in the quarter were $184m, up 20% compared with the prior-year period and up 24% over the trailing second quarter. Preliminary orders included a record $166m in orders for the Company’s Aerospace segment and $18m in orders related to the Test segment.
Backlog at the end of the quarter was an estimated $547m including a record $464m in backlog for the Aerospace segment.
The Company’s preliminary consolidated net loss for the quarter ended October 1, 2022 is estimated to be approximately $15m, compared with a net loss of $7.2m in the prior-year period. This is reflective of $4m of legal and customer accommodation expense and increased labor and material costs for the quarter ended October 1, 2022, while the prior-year period benefited by $1.1m from the Aviation Manufacturing Jobs Protection Program Grant.
Revenue Expectations for the Fourth Quarter and 2023
The Company expects fourth quarter revenue to be in the range of $140 m to $150 m, which, at the midpoint, implies full year 2022 revenue of approximately $521 m, a 17% increase over 2021.
Astronics expects 2023 revenue to grow substantially, reaching a range of $640 m to $680 m driven by strong demand that resulted in cumulative bookings of $686 m over the last four quarters.
Refinancing of Credit Facility Continues to Advance
On October 21, 2022, the Company amended its credit facility and increased the maximum borrowing under the revolving credit line to $180m. The maximum aggregate amount available for borrowing by the Company will decrease back to $170m on November 21, 2022.
The amendment included a waiver of the maximum net leverage ratio and minimum liquidity covenants as of September 30, 2022.
The Company is in active discussions with lenders regarding refinancing its existing credit facility. (Source: BUSINESS WIRE)
07 Nov 22. PCX Aerosystems Acquires Timken Aerospace Drive Systems.
PCX Aerostructures, LLC dba PCX Aerosystems (“PCX”), a leading manufacturer of highly engineered, precision, Flight Critical aerospace components and complex assemblies for rotorcraft and fixed wing aerospace platforms, has completed the acquisition of Manchester, CT based Timken Aerospace Drive Systems (ADS), a proven source for aerospace transmission assemblies, gearboxes, Flight Critical components and overhaul and repair services. ADS will be rebranded as “PCX Aerosystems – Manchester LLC.”
“Manchester brings a deep history and expertise in supplying complex gears, gearboxes and transmissions to the Aerospace and Defense industry, expanding our capability set in our core target market of mission critical components and assemblies. We are excited to have Ben and his team join the PCX family and look forward to working with them to offer world class products and services to our broad customer base.” said Tom Holzthum, CEO of PCX.
“We are thrilled to join the PCX team and look forward to learning and sharing best practices with the rest of the business. PCX and ADS management have a shared vision of accelerating Manchester’s growth and expanding its capabilities to support new and existing customers, and we believe this transaction will provide new opportunities to diversify and grow” said Ben Kearns, President, PCX Aerosystems – Manchester.”
Headquartered in Connecticut, PCX Aerosystems is a leading privately owned supplier of highly engineered, precision, Flight Critical assemblies for rotorcraft and fixed wing aerospace platforms. PCX produces rotorhead assemblies and control systems, landing gear assemblies, external fuel tank systems, engine and structural airframe components in addition to composite fabrications and refueling probes. PCX provides direct delivery of components and large assemblies to customers such as Boeing, General Electric Aircraft Engines, Bell, Sikorsky and the U.S. Government. PCX also manufactures proprietary propellant and high-pressure tanks for advanced satellite, launch vehicle spacecraft and missile platforms. Founded in 1900, PCX owns facilities in CT, CA and MA. PCX Aerostructures, LLC, dba PCX Aerosystems is owned by Greenbriar Equity Group, L.P. To learn more visit www.pcxaero.com.
About Aerospace Drive Systems
Aerospace Drives Systems (ADS) was originally founded in 1946 as the Purdy Corporation. ADS is a leading provider of complex, Flight Critical assemblies, sub-assemblies and components for military and civil aircraft. ADS is vertically integrated with full capabilities in metrology, NADCAP heat teat and NDT, milling, turning, grinding, gear grind, assembly, full gearbox testing, and overhaul and repair. (Source: PR Newswire)
07 Nov 22. Graham Corporation Reports Second Quarter Fiscal 2023 Sales Growth Of 12% And Record Backlog of $313m.
Graham Corporation Reports Second Quarter Fiscal 2023 Sales Growth of 12% and Record Backlog of $313m.
- Second quarter sales increased $4.0m to $38.1m over the prior-year period reflecting solid growth in space and Refining/Petrochemical Commercial Aftermarket
- Defense, space and other commercial represented 65% of revenue in the second quarter Reflecting a more diversified customer base
- net loss was $196 thousand and diluted earnings per share (“eps”) was a loss of $0.02 per share; adjusted diluted eps* was $0.03 per share and adjusted EBITDA* was $1.5m
- Shipped an additional U.S. Navy unit and remain on schedule to ship the remaining first article units by the end of the first quarter of fiscal 2024
- Record orders of $91.5 m drove backlog of $313.3m, up 20% sequentially, with 79% of backlog related to defense
- Reaffirms fiscal 2023 revenue guidance of $135m to $150m and adjusted EBITDA* of $6.5 m to $9.5m
Graham Corporation (NYSE: GHM), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy and process industries, today reported financial results for its second quarter ended September 30, 2022 (“second quarter fiscal 2023”).
Daniel J. Thoren, President and CEO, commented, “Our second quarter results demonstrate the progress we are making to improve our business and clear the unprofitable jobs from our backlog. We are pleased with the growth we are seeing in space and new energy and are encouraged by the increased activity in our traditional refining and petrochemical commercial aftermarkets, which is a strategic focus for us. Importantly, we believe the large repeat orders for critical U.S. Navy programs that we previously announced validate the investments we made, our position as a key supplier to the defense industry, and our customer’s confidence in our execution.”
He added, “I am excited about the cadence we are developing as an organization as we seek to improve our profitability. We are carefully managing costs, yet also strategically investing to create the necessary infrastructure to scale Graham and build a better business. Our outlook for fiscal 2023 implies strong growth and improved profitability for the year. Although we have a lot of hard work ahead of us, we believe we are on track to deliver our five-year aspirational goals of high single digit revenue growth and adjusted EBITDA margins in the low double digit to mid-teens range.”
Mr. Thoren concluded, “Our results for the first half of fiscal 2023 were in-line with our expectations and give us confidence we will be able to achieve our full fiscal year guidance. Fiscal 2022 and year-to-date fiscal 2023 results were impacted by our larger, lower margin, first article U.S. Navy projects. We believe this negative impact will continue through the first quarter of 2024 when the last of these larger first article projects are expected to be completed. We expect the recently awarded repeat orders for the U.S. Navy will be at higher margins through improved pricing and better execution.” It is also important to note that the Company’s third quarter is typically impacted by lower labor hours due to the holidays.
Sales (see supplemental financial information for detail of sales by industry and region)
- Sales growth year-over-year was driven by space revenue increasing $3.0m, more than double the prior-year period.
- Chemical/petrochemical and refining growth of $3.6m was driven by aftermarket orders and helped offset the decline in defense sales due to project timing.
- Other commercial markets sales of $5.6m included sales related to new energy, which is primarily hydrogen and solar energy markets.
Profits and Margins
- Gross profit and margin improved over the prior year period on a better mix of higher margin projects and better execution and pricing. The sequential decline in gross profit margin was a result of a higher mix of lower margin sales and was consistent with our expectations.
- Selling, general and administrative (“SG&A”) expense, including intangible amortization, was $5.3m, up 1.6% or $85,000. SG&A expense as a percentage of sales improved to 14% compared with 15% in the comparable period in fiscal 2022.
- Increased sales, improved execution, and strong cost discipline resulted in reductions in operating and net loss to near breakeven and the improvement in adjusted EBITDA and adjusted diluted EPS. Results continue to reflect lower margin orders from the U.S. Navy received several years ago.
Cash Management and Balance Sheet
- Capital expenditures in the quarter were $0.9m. The Company has reduced its capital expenditure expectations for fiscal 2023 to be approximately $3m to $4m reflecting the timing of projects and cash management efforts.
- Net debt (debt minus cash and cash equivalents) at quarter end was $5.0 m, up slightly from $4.2m at the end of the trailing first quarter due to the timing of milestone payments.
Christopher J. Thome, Vice President-Finance and CFO, noted, “We have instituted strong cash management discipline throughout the organization. This includes actively managing working capital and operating expenses while increasing oversight of capital expenditures to ensure proper return on capital. Our cash management efforts align well with other business processes we are incorporating throughout Graham to elevate the engagement and awareness of our associates on their influence to our performance and opportunities as a growing enterprise.”
Orders and Backlog
Orders for second quarter fiscal 2023 were up $60.1m, or 192%, to $91.5m. The book-to-bill ratio for the quarter was 2.4:1.
- Strong defense industry orders of $69.6m were driven by repeat orders for critical U.S. Navy programs.
- Space orders grew 58% to $3.7m and was driven by demand across multiple key space-industry companies.
- Refining orders were $8.7m, up 74% driven primarily by aftermarket demand, which the Company views as a leading indicator of future capital investments by customers in this market.
Of the $313 m in backlog, approximately 40% to 45% is expected to convert to sales over the next twelve months. Most of the backlog expected to convert beyond twelve months is for the defense industry, specifically the U.S. Navy.
Backlog by industry on September 30, 2022, was as follows:
- 79% for defense projects
- 9% for refinery projects
- 4% for chemical/petrochemical projects
- 4% for space projects
- 4% for other industrial applications
(Source: BUSINESS WIRE)
04 Nov 22. HII reports 12.3% increase in revenues in third quarter of 2022. The company’s NSS division has registered a $91m, or 6.7%, increase in quarterly revenue. Huntington Ingalls Industries (HII) has reported revenues of $2.6bn in the third quarter (Q3) of 2022, representing an increase of 12.3% from $2.3bn in 2021.
The company said that this year-over-year increase is due to the revenue growth at HII’s Newport News Shipbuilding (NNS) and the acquisition of Alion Science and Technology in Q3 last year.
NNS revenues were up by $91m, or 6.7%, to $1.4bn, compared to $1.3bn in Q3 in 2021.
HII’s current quarterly net earnings were $138m, a decline of 6.1% from $147m in the third quarter of 2021.
The company’s diluted earnings per share (EPS) in Q3 of 2022 was $3.44, compared to $3.65 in the third quarter of 2021.
According to HII, this decline was due to the negative impacts of equity investments in the year and tax benefits in last year.
HII president and CEO Chris Kastner said: “Notwithstanding a continued challenging economic environment, we remain focused on consistent shipbuilding programme execution and capturing contract awards at our Mission Technologies division.
“We are confident in the positioning of the business for long-term value creation, given the tremendous volume of shipbuilding work we have secured in backlog and a Mission Technologies division that is poised for growth in markets of critical importance to our customers.”
During Q3 that ended on 30 September 2022, operating income increased to $131m, from $118m posted last year in Q3. The operating margin was 5%, the same for both the current and previous year.
In addition, HII has secured new contracts worth $2.1bn in Q3 of this year, which brings its total backlog to nearly $46.7bn. (Source: army-technology.com)
07 Nov 22. Leonardo sells U.S unit’s ATM business to Spain’s Indra. Leonardo (LDOF.MI) has agreed to sell its unit Selex ES’ Air Traffic Management (ATM) activities to Indra Air Traffic, a company controlled by Spain’s Indra Sistemas, the Italian defence group said on Monday.
The closing of the transaction is expected in the first quarter of 2023, it added in a statement, without disclosing any financial details.
The ATM business of Leonardo U.S. unit Selex ES “is a leading developer and manufacturer of en-route navigation, surveillance and precision approach and landing systems,” Leonardo said. (Source: Reuters)
04 Nov 22. Moog Inc. Reports Fiscal Year End 2022 Results and Initial Guidance for Fiscal Year 2023.
Moog Inc. (NYSE: MOG.A and MOG.B) announced today financial results for the quarter and fiscal year ended October 1, 2022.
Fourth Quarter Highlights
- Sales of $768m, up 6% from a year ago;
- Operating margin of 8.6% and adjusted operating margin of 10.4%, up 80 basis points from a year ago;
- Effective tax rate of 31.6%;
- Diluted earnings per share of $0.92;
- Adjusted diluted earnings per share of $1.36, up 8% from a year ago; and
- $63 m in cash flow from operating activities and $52m in adjusted cash flow from operating activities.
Full-Year 2022 Highlights
- Sales of $3.0bn, up 6% from a year ago;
- Operating margin of 9.3% and adjusted operating margin of 10.2%, up 50 basis points from a year ago;
- Effective tax rate of 23.6%;
- Diluted earnings per share of $4.83;
- Adjusted diluted earnings per share of $5.56, up 14% from a year ago; and
- $247m in cash flow from operating activities and $147m in adjusted cash flow from operating activities.
Fiscal 2023 Guidance
- Sales of $3.2bn, a 5% increase;
- Full year operating margin of 11.0%, up 80 basis points;
- Tax rate of 25.0%;
- Diluted earnings per share of $5.70, plus or minus $0.20; and
- $280m in cash flow from operating activities.
Aircraft Controls segment revenues in the quarter were $324m, 9% higher year over year. Commercial aircraft revenues were $137m, a 39% increase. Sales to commercial OEM customers were $95m, driven by increases in sales for the Boeing book of business and strength in business jet sales. Commercial aftermarket sales increased 46% on strong repair and overhaul activity and higher 787 and A350 spares.
Military aircraft sales were $186m, 6% lower year over year. Military OEM sales were down 6%, at $135m. Supply chain constraints on the F-35 and V-22 programs contributed to the sales reduction. Military aftermarket sales were also off 6%.
Full-year Aircraft Controls segment sales increased 8%, to $1.26bn. Commercial aircraft sales were 35% higher on OEM production rates. Commercial aftermarket sales were very strong, up 59%, as the recovery in air traffic accelerated. Total military aircraft sales were off 5%, at $745m. Military OEM sales totaled $540m, down 6% from a year ago, mostly tied to slower F-35 activity. Military aftermarket sales were down 1%, as lower F-18 and B-2 repairs were only partially offset by higher V-22 and F-15 repair volume.
Space and Defense segment revenue in the quarter was $217m, an increase of 9% year over year. Defense sales of $143m increased 20%. The continued production ramp on the RIwP® turret for M-SHORAD drove the increase. Space sales were down 8%, to $75m, on slowing hypersonic development and NASA launch vehicle activity.
Space and Defense sales for the year increased 9%, to $872m. Defense sales of $535m were 15% higher as the RIwP turret production ramped. Space sales were $338m, up 1%. Increased spacecraft component and avionics sales were partially offset by decreases in funded development and NASA activity.
Industrial Systems segment revenues in the quarter were $227m, in line with a year ago. Excluding the impact of foreign exchange movements, underlying sales increased 6%. Sales of products for industrial automation applications were $111m, up 3% on demand for factory automation equipment. Medical product sales were $62m, also up 3%, driven by growth of components used by OEMs. Energy sales were mostly flat at $31m. Sales of simulation and test products were $23 m, down 10%.
Full-year Industrial Systems segment sales were $907 m, up 2%. Excluding the impact of foreign exchange movements, underlying sales increased 5%. Industrial automation sales of $435m were 2% higher. Energy sales were up 4%, to $126m. Simulation and test sales increased 12% as the flight simulator market improved. Sales of medical pumps and associated products, at $247m, were 3% lower.
Consolidated 12-month backlog was $2.3bn, up 9% from a year ago.
“Fiscal ’22 was a record year for the company in terms of both sales and adjusted earnings per share,” said John Scannell, Chairman and CEO. “Our commercial aircraft business recovered nicely and demand for our products was strong across all our major markets. The disruption from COVID receded during the course of the year but was replaced with supply chain challenges and labor constraints. Despite these challenges, the company performed extremely well. We are excited about our prospects for the future. As we look to fiscal ’23, we anticipate another year of organic growth and margin expansion.” (Source: BUSINESS WIRE)
TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.