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16 Feb 23. inTEST Reports Preliminary Unaudited Revenue and Orders for Fourth Quarter and Full Year 2022:Announces Date of Fourth Quarter and Full Year 2022 Financial Results Conference Call and Webcast.

inTEST Corporation (the “Company”) (NYSE American: INTT), a global supplier of innovative test and process solutions for use in manufacturing and testing in key target markets including automotive, defense/aerospace, industrial, life sciences, security, and semiconductor (“Semi”), today announced preliminary unaudited fourth quarter and full-year 2022 revenue and orders for the period ended December 31, 2022. Results include the impact from the following acquisitions: North Sciences, formerly Z-Sciences (October 2021), Videology (October 2021), and Acculogic (December 2021).

Preliminary Unaudited Fourth Quarter and Year-End Performance and Business Highlights

• Fourth quarter revenue is expected to be approximately $32.4m, a 44.9% increase compared to the fourth quarter of 2021
• Full-year 2022 revenue is expected to be approximately $116.8m, a 37.6% increase compared to full-year 2021
• Orders for the fourth quarter were approximately $31.3m, a 2.8% increase compared to the fourth quarter of 2021
• Orders for the full-year 2022 were approximately $129.6m, a 27.1% increase compared to full-year 2021

Nick Grant, President and CEO commented, “We’re pleased that we delivered above our revenue expectations for the fourth quarter and full year. Demand for our solutions remains high, with orders on pace with where we would like to be as we enter 2023. We believe the success we are demonstrating is a result of the continued execution of our 5 Point Strategy for growth. We look forward to reporting our 2022 earnings and providing a first quarter and full year 2023 outlook on March 3rd.”

(Source: BUSINESS WIRE)

 

16 Feb 23. Aerojet Rocketdyne reports 2.3% sales growth for 2022.

The company’s backlog totalled $6.8bn as of 31 December. Aerojet Rocketdyne has recorded sales of $2.23bn for the full year that ended on 31 December, an increase of 2.3% compared to $2.18bn in 2021.

The company has attributed the increase to growth in the Next Generation Interceptor (NGI) programme, which was partly offset by a drop in RS-25 programme sales. During the year, the company had 53 operational weeks and the extra week accounted for additional net sales of $42.3m.

Net income for the full year was $74m, a decrease from $146.6m in 2021. Adjusted EBITDAP margins excluding changes in contract estimates was 12.1%.

The full year free cash flow was negative at $89m.

For the fourth quarter, sales were $648m, net income was $16.1m, and free cash flow was positive at $9m.

The company had a backlog of $6.8bn as of 31 December.

Aerojet Rocketdyne CEO and president Eileen Drake said: “Aerojet Rocketdyne delivered record sales for the fourth quarter and for the full year and book to bill of 1.0, as we stayed focused on our business fundamentals and continued to build on our strong foundation. I commend our team’s perseverance, which is reflected in our positive results.”

Drake added: “Aerojet Rocketdyne has begun hiring for our third campus in Huntsville, Alabama, a 379,000ft² manufacturing facility that will enable increased manufacturing capacity for our nation’s defence production needs.”

On 18 December 2022, L3Harris Technologies entered a definitive agreement to acquire Aerojet Rocketdyne in an all-cash transaction valued at $4.7bn.

“Finally, in December, we announced an agreement to be acquired by L3Harris in an all-cash transaction that will accelerate innovation and strengthen competition for national security and space exploration propulsion solutions.

“In addition to providing a premium value to our shareholders, the transaction with L3Harris provides tremendous benefits for our employees, customers, partners, and the communities in which we operate.” (Source: army-technology.com)

 

16 Feb 23. KBR, Inc. (NYSE: KBR) today announced its fourth quarter and fiscal 2022 financial results and issued its fiscal 2023 financial guidance.

“We had an excellent 2022 and finished the year strong. Our incredible people do things that matter every single day, and I wish to thank them for all that they do. Once again they delivered outstanding results across all key metrics. Our safety performance was another highlight achieving Zero Harm 91% of all days throughout 2022,” said Stuart Bradie, KBR President and CEO.

“We saw organic revenue growth in line with our targets, but the real story was quality of earnings, outstanding operational performance leading to enhanced margins and cash conversion above expectations. We have been carbon neutral since 2019 and continue to make good progress on our 2030 operational net-zero carbon target. We also strengthened unique synergies across our business that enable us to seamlessly deploy our deep domain expertise and differentiated innovations and capabilities in key areas of global importance such as national security, energy security and transition, and space. As a result, we are well positioned in strategic end markets with favorable tailwinds. In 2022, we had annual bookings and options of $8.2bn and move into 2023 with 70%+ of work already under contract. Sustainable Technology Solutions is significantly ahead of pace, and this is expected to continue into next year and beyond.

Looking ahead, we believe we are primed to continue driving growth and stakeholder value, with ever-growing confidence in our 2025 targets, and we are pleased to announce our fiscal 2023 earnings and cash guidance.”

New Business Awards

Backlog and options for the quarter totaled $19.8bn. Delivered 1.2x trailing-twelve-months book-to-bill1 as of December 31, 2022, including $1.5bn of awards and options in the quarter, as follows:

• Won two contracts totaling over $120m to support strategic space system acquisitions through advanced analytics, modeling, estimation, research, integrated program management, acquisition technical assistance, architecture trade studies, data science, and data management.
• Granted a $157m task order to support capabilities assessment and enhancements for the U.S. Army’s Utility Helicopter 60 Variant fleet.
• Received a $69m task order to deliver critical airborne manned reconnaissance aircraft systems for the Naval Surface Warfare Center Crane and the Naval Air Systems Command.
• Partnered with Deepak Fertilizers and Petrochemicals Corporation Ltd. to help lower emissions and increase production capacity at three plants.
• Engaged to provide front-end engineering design of the baseload power hub for an innovative energy storage project off the coast of the Netherlands.
• Proprietary Vinyl Acetate Monomer technology, offered in alliance with Showa Denko K.K., selected for a 100,00 ton per annum production facility in India.
• In addition, the Court of Federal Claims upheld the Global Household Goods contract award to our joint venture, HomeSafe Alliance, by U.S. Transportation Command with a contract ceiling value of $20bn and a potential nine-year term, inclusive of all options periods. HomeSafe Alliance is proceeding with work under the contract; however, at this time, only the transition period has been included in backlog.
• Revenue of $1.6 bn, up 23% on an ex-OAW1 year-over-year-basis
• Net income attributable to KBR of $93m; Adjusted EBITDA1 of $157 m (10% Adjusted EBITDA1 margin)
• Diluted EPS of $0.62; Adjusted EPS1 of $0.69, up 60% on an ex-OAW1 year-over-year basis
• Operating cash flows of $60m; Adjusted operating cash flows1 of $88m
• Bookings and options of $1.5bn during the quarter with 1.2x TTM book-to-bill2

Financial Highlights for the Year Ended December 31, 2022

• Revenue of $6.6bn, up 9% on an ex-OAW1 year-over-year-basis
• Net income attributable to KBR of $190 m; Adjusted EBITDA1 $668m (10% Adjusted EBITDA1 margin)
• Diluted EPS of $1.26; Adjusted EPS1 of $2.71, up 28% on an ex-OAW1 year-over-year basis
• Operating cash flows of $396m; Adjusted operating cash flows1 of $424m with 110% Adjusted operating cash flow1 conversion
• Bookings and options of $8.2bn during the year with 1.2x TTM book-to-bill2

Commentary on Fiscal 2022 Financial Results

Revenues for the year were $6.6bn, down 11% compared to 2021 primarily attributable to the completion of work associated with the Operation Allies Welcome (OAW) program in early 2022. Excluding OAW, revenue increased $495m, or 9%.

Net income attributable to KBR was $190m, up $163m compared to 2021, primarily due to an increase in gross profit and a provision for the loss on the Ichthys project dispute in 2021.

Adjusted EBITDA1 was $66 m, up 7% compared to 2021, and Adjusted EBITDA1 margin expanded to 10%, up 166 bps over the same period. Diluted earnings per share and Adjusted earnings per share1 increased due to higher operating income, partially offset by higher interest expense.

Operating cash flows were $396m, up 42% compared to 2021. Adjusted operating cash flows1 were $424m, up 33% compared to the 2021, resulting in Adjusted operating cash conversion1 of 110%.

1  As used throughout this earnings release, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings per share, Adjusted operating cash flows, Adjusted free cash flows, Revenue excluding OAW and Adjusted EPS excluding OAW are non-GAAP financial measures. See additional information at the end of this release regarding non-GAAP financial information, including reconciliations to the nearest GAAP measures.

2 Consistent with our practice, book-to-bill excludes long-term UK PFIs

Liquidity, Capital Structure, and Dividends

Capital returned to shareholders totaled $269m during the year, consisting of $203m in share repurchases, inclusive of share repurchases to satisfy requirements of equity compensation plans, and $66m in regular dividends.

On February 10, 2023, the Board of Directors approved an increase of our quarterly regular dividend from $0.12 per share to $0.135 per share effective for the record date and payment date of the next scheduled distribution on March 15, 2023 and April 14, 2023, respectively. This represents the fourth successive year of dividend increases, representing a 12.5% increase from the previous regular dividend amount.

 

16 Feb 23. Pennant (PEN:33.5p), an Aim-traded supplier of products and services that train and assist engineers in the defence and civilian sectors, has reported a trading profit for the third consecutive half-year period, increased its gross margin materially and almost wiped out borrowings.

The change in fortune reflects the wind-down of an onerous lossmaking legacy armoured vehicle contact with the UK Ministry of Defence (MoD), restructuring the business to take out costs and a shift in the business mix to higher-margin software activities. Although annual revenue fell from £16m to £13.7m in 2022, gross margin shot up from 27 to 42 per cent as revenue was roughly split equally between higher-margin software activities and traditional training services (the design and build of generic and platform-specific training technologies), says analyst Nick Spoliar at house broker WH Ireland.

Pennant’s software offers tangible financial benefits to its customers, including aerospace manufacturers Boeing, Thales and Airbus Helicopters. Specifically, its Oracle-based software product, OmegaPS, reduces the support cost of maintaining major assets such as trains, tanks or aeroplanes. The speed and frequency of maintenance and repair of major capital equipment have a major impact on the overall cost of ownership, so by minimising life-cycle costs, and providing timely and quality information, the technology can deliver material savings.

The shift towards higher-margin software sales means that the leaner operation now requires a much lower revenue run rate to turn a profit, hence why Pennant is set to report an underlying operating profit of £0.5m on revenue of £13.7m in 2022 (aligned with WH Ireland’s £0.2m pre-tax profit estimate). The company is also forecast to increase pre-tax profit and earnings per share (EPS) sixfold to £1.2m and 3.1p, respectively, on revenue of £16.5mn in the 2023 financial year, an estimate well underpinned by growth in the three-year order book (up from £22m to £25m). Around £13mn of orders are scheduled for delivery in 2023, covering 78 per cent of WH Ireland’s revenue estimate.

Importantly, Pennant’s net debt was slashed from £3.5m to £0.4m in 2022, and the improved cash position should allay investor concerns about the strength of the company’s balance sheet. Moreover, the business is set to become increasingly cash generative, a reflection of cash flows from contract awards with major clients. WH Ireland predicts net cash of £2.1mn by the end of 2023, a healthy sum for a £12mn market capitalisation microcap

Ajax armoured vehicles contract

Interestingly, Investors’ Chronicle’s sister paper, Financial Times, has reported that the MoD is poised to resume payments to US Defence company General Dynamics (GD:NYQ), which was awarded a £5.5bn contract in 2014 to deliver 589 Ajax armoured vehicles. However, it has not been paid for two years as the UK government probed serious noise and vibration problems during the trials that caused hearing problems for some crews.

The US contractor has received £3.2bn from the MoD to date, but has $1.7bn (£1.4mn) receivables outstanding and now expects payments from the MoD to resume next month. This is potentially positive news for Pennant. That’s because General Dynamics sub-contracted the electro-mechanical trainers and computer-based training on the Ajax contract to the UK company. Pennant completed its delivery of the remaining training devices last year, but it may still be due some payments. So, if General Dynamics’ receivables with the MoD start to unwind, Pennant should benefit.

Furthermore, the company is a likely beneficiary of higher global defence spending in response to Russia’s invasion of Ukraine, adding weight to the prospects of converting £50m of estimated contract opportunities in its sales pipeline. I last rated Pennant’s shares a buy, at 29.5p, at the interim results (‘A below the radar recovery play’, 22 September 2022), and feel that a current-year prospective price/earnings (PE) ratio of 11 and price/book value ratio of 1.15 times underrates what is a developing earnings recovery story. Buy. (Source: Investors Chronicle)

 

16 Feb 23. Airbus profit tops estimates but pushes back output of best-selling jets. Airbus reported stronger-than-expected operating profit in 2022 but has slowed the planned production increase of its best-selling aircraft this year amid persistent disruptions in the supply chain.

The world’s largest plane maker said it aimed to deliver 720 aircraft by the end of the year, its original estimate for last year which it had to adjust twice because of raw material and labour shortages coming out of the pandemic.

Airbus on Thursday said it would adjust the monthly production rate of its A320 family of single-aisle jets to 65 by the end of 2024. The goal of 75 a month will move from the “middle of the decade” to the end of 2026.

“We delivered solid financials despite an adverse operating environment that prevented our supply chain from recovering at the pace we expected,” said Guillaume Faury, chief executive.

The Toulouse-based aerospace and defence group is targeting an adjusted operating profit of €6bn for 2023 after posting a stronger-than-expected €5.627bn last year, an increase of 16 per cent from 2021. The result was driven by higher commercial aircraft deliveries as well as positive retirement obligations.

Group revenues for the period rose 13 per cent to €58.7bn, of which its defence activities contributed €11.5bn. The company is proposing a dividend of €1.80 a share, an increase of 20 per cent.

Airbus on Wednesday announced that it had appointed German executive Thomas Toepfer as its next chief financial officer from September 1. Toepfer, who is currently finance chief at German polymer manufacturer Covestro, will succeed Dominik Asam who steps down next month. (Source: FT.com)

 

16 Feb 23. Airbus reports Full-Year (FY) 2022 results.

• 661(1) commercial aircraft delivered in FY 2022
• Revenues €58.8bn; EBIT Adjusted up 16% to €5.6bn
• EBIT (reported) €5.3bn; EPS (reported) €5.40
• Free cash flow before M&A and customer financing €4.7bn
• Dividend proposal: €1.80 per share
• 2023 guidance issued

Airbus SE (stock exchange symbol: AIR) reported consolidated Full-Year (FY) 2022 financial results and provided guidance for 2023.

“The industry continued its recovery during 2022, with air traffic increasing and airlines turning to their long-term fleet planning. We delivered solid financials despite an adverse operating environment that prevented our supply chain from recovering at the pace we expected. The Company had to adjust its operations accordingly, which led to lower commercial aircraft deliveries than originally planned. We are adapting our production to match supply,” said Guillaume Faury, Airbus Chief Executive Officer. “As we move forward in 2023 we are focused on our industrial activities and the longer-term transformation of the Company. The solid 2022 financial performance and our confidence in the future lead us to propose a higher dividend payment this year.”

Gross commercial aircraft orders increased to 1,078 (2021: 771 aircraft), with net orders of 820 aircraft after cancellations (2021: 507 aircraft) corresponding to a net book-to-bill ratio significantly above 1. The order backlog amounted to 7,239 commercial aircraft at the end of 2022. Airbus Helicopters registered 362 net orders (2021: 414 units), with a book-to-bill above 1 both in units and value. Helicopter orders were well spread across programmes and included 12 H160s. Airbus Defence and Space’s order intake by value was € 13.7 bn (2021: € 13.7 bn), corresponding to a book-to-bill of around 1.2. Key orders included Demonstrator Phase 1B of the Future Combat Air System, the Eurodrone unmanned aerial system and 20 latest-generation Eurofighters for the Spanish Air Force.

Consolidated order intake by value increased to €82.5bn (2021: €62.0bn) with the consolidated order book valued at €449bn at the end of 2022 (year-end 2021: €398bn). The increase in the consolidated backlog value mainly reflects the book-to-bill above 1 and the strengthening of the US dollar.

Consolidated revenues increased 13 percent to €58.8bn (2021: €52.1bn). A total of 661(1) commercial aircraft were delivered (2021: 611(2) aircraft), comprising 53 A220s, 516 A320 Family, 32 A330s and 60 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 15 percent year-on-year, mainly reflecting the higher deliveries and the strengthening of the US dollar. Airbus Helicopters delivered 344 units (2021: 338 units), with revenues rising by 8 percent, mainly reflecting growth in services and a favourable mix in programmes. Revenues at Airbus Defence and Space increased 11 percent, mainly driven by higher volume in Military Aircraft and Eurodrone. A total of 10 A400M airlifters were delivered in 2022, compared to 8 in 2021.

Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – increased to € 5,627m (2021: € 4,865m).

EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 4,600m (2021: € 3,570m). The increase reflects the higher deliveries and is supported by some non-recurring elements – mainly the positive impacts from retirement obligations and from the progress made on compliance related topics – partly offset by a less favourable hedge rate compared to FY 2021.

On the A320 Family programme, the ramp-up trajectory has been adapted with suppliers. The Company is now progressing towards a monthly production rate of 65 aircraft by the end of 2024 and 75 in 2026. Entry-into-service for the A321XLR is expected to take place in Q2 2024.

The A330 monthly production rate increased to around 3 at the end of 2022 as planned and the Company now targets to reach rate 4 in 2024. The A350 monthly rate is now around 6 aircraft. In order to meet growing demand for widebody aircraft as international air travel recovers, and following a feasibility study with the supply chain, the Company is now targeting a monthly production rate of 9 A350s at the end of 2025.

Airbus Helicopters’ EBIT Adjusted increased to € 639 m (2021: € 535 m), reflecting higher services and programme execution. Non-recurring elements included the positive impact related to retirement obligations booked in Q1.

EBIT Adjusted at Airbus Defence and Space decreased to € 384 m (2021: € 696 m), mainly reflecting the impairment related to the loss of two Pleiades Neo satellites in December and to delays on the Ariane 6 launcher, as well as the impact of rising inflation. This was partly offset by higher volume in Military Aircraft, the ramp-up in Eurodrone and the positive impact related to retirement obligations booked in Q1.

On the A400M programme, development activities continue towards achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. In 2022, an update of the contract “Estimate at Completion” was performed and an additional charge of € 0.5 bn recorded. This mainly reflects updated assumptions, including inflation and risks related to the remaining SOC3 contractual development milestones to be achieved. Risks remain on the qualification of technical capabilities and associated costs, on aircraft operational reliability, on cost reductions and on securing export orders in time as per the revised baseline.

Consolidated self-financed R&D expenses totalled €3,079m (2021: €2,746m).

Consolidated EBIT (reported) amounted to €5,325m (2021: €5,342m), including net Adjustments of €-302m.

These Adjustments comprised:

• €+308m related to the dollar pre-delivery payment mismatch and balance sheet revaluation, of which € -41m were in Q4;
• € +28m related to the A380 programme, of which €-5m were in Q4;
• €-477m related to the A400M programme, of which €-258m were in Q4;
• €-82m related to the Aerostructures transformation in France and Germany, of which € -34m were in Q4;
• €-79m of other costs including compliance, of which €-35m were in Q4.

The financial result was €-250m (2021: €-315m). It mainly reflects the net interest result of €-232m. It also includes a negative impact from the revaluation of financial instruments and a positive impact from the revaluation of certain equity investments. Consolidated net income(3) was €4,247m (2021: €4,213m) with consolidated reported earnings per share of €5.40 (2021: €5.36).

Consolidated free cash flow before M&A and customer financing was € 4,680m (2021: €3,515m), supported by the favourable foreign exchange environment and a strong positive phasing impact from working capital. Consolidated free cash flow was €4,324m (2021: €3,511m). The 2021 dividend of €1.50 per share, or €1.2bn in total, was paid in Q2 2022 while pension contributions totalled €0.6bn during the year. The gross cash position stood at €23.6bn at the end of 2022 (year-end 2021: € 22.7bn), with a consolidated net cash position(4) of € 9.4bn (year-end 2021: €7.7bn).

The Board of Directors will propose the payment of a 2022 dividend of €1.80 per share (2021: €1.50 per share) to the 2023 Annual General Meeting taking place on 19 April 2023. The proposed payment date is 27 April 2023.

Outlook

As the basis for its 2023 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services.

The Company’s 2023 guidance is before M&A.

On that basis, the Company targets to achieve in 2023 around:

• 720 commercial aircraft deliveries;
• EBIT Adjusted of €6.0bn;
• Free Cash Flow before M&A and Customer Financing of €3.0bn.

The Company has received approval from the Science Based Targets initiative (SBTi) for its greenhouse gas emission reduction near-term targets. These targets, in line with the Paris agreement’s objectives, are based on climate science and cover the full set of the Company’s emissions. Airbus intends to reduce its Scope 1 and Scope 2 industrial emissions by up to 63% by 2030, in line with a 1.5°C pathway. The Company also committed to reducing by 46% the greenhouse gas emissions intensity generated by its commercial aircraft in service (Scope 3 – Use of Sold Product) by 2035.

 

16 Feb 23. QinetiQ Group plc (“QinetiQ”) today announces the formation of a new Australia Sector and names Gary Stewart as the Sector’s Chief Executive, effective 01 May 2023.

• Gary joins QinetiQ from Rheinmetall Defence Australia where he was the Managing Director responsible for strategy and operational delivery in the Asia Pacific region
• The newly created Australian Sector replaces the International Sector and is further demonstration of QinetiQ’s commitment and investment in Australia
• Follows QinetiQ’s investment of more than A$100m in Australian people, skills and capabilities in recent years
• The Australia Sector will become QinetiQ’s global hub for threat representation and will be a multi-national Sector, comprising each of the businesses that were part of the International Sector
• The new sector is well placed to support the goals of AUKUS and ultimately ensure the country has the right capabilities to meet the growing strategic challenges and threats facing Australia and its partners

Steve Wadey, Group Chief Executive Officer of QinetiQ, commented:

“Gary’s extensive experience in the Australian and global defence sectors, alongside his ability to grow businesses at scale, means that he is the right leader to deliver both short-term operational performance and our long-term strategy to grow our Australia Sector at pace.  Today’s announcement is another significant step in our multi-domestic growth ambition and a strong indication of QinetiQ’s commitment to the defence sector in Australia.”

Gary Stewart, incoming Chief Executive of QinetiQ Australia Sector, commented:

“I am delighted to be joining the leadership team of a global defence and security company that will deliver growth from Australia while playing our role in contributing to national and global security. The new Australia Sector will be crucial in creating sovereign capability and further developing critical skills including becoming QinetiQ’s global leader for threat representation.  I am looking forward to working with the highly skilled people at QinetiQ, dedicated to supporting our customers’ critical missions.”

 

14 Feb 23. Palantir reports 24% YoY rise in revenues in FY 2022.

Palantir’s Q4 2022 GAAP net income was reported at $31m, marking the ‘first quarter of positive GAAP net income’.

Palantir Technologies has reported a 24% year-over-year (YoY) increase in total revenue to $1.91bn for fiscal year 2022, from $1.54bn in 2021.

The company also recorded an increase in US revenue by 32% to $1.16bn while the US government revenue rose by 22% to $826m.

Adjusted income from operations for the full year, which ended on 31 December 2022, was $421m, representing a 22% margin.

Palantir’s loss from operations stood at $161m. The latest figures represent an 8% margin.

Meanwhile, adjusted free cash flow and cash from operations were reported at $203m and $224m, respectively.

Palantir Technologies CEO and co-founder Alex Karp said: “With this result, Palantir is profitable.”

In the fourth quarter (Q4) of 2022, the company’s generally accepted accounting principles (GAAP) net income was reported at $31m, with a GAAP earnings per share of $0.01.

Palantir claimed that this marks the first time the company has recorded a ‘positive’ GAAP net income in a quarter.

The overall revenue for Q4 2022 witnessed an 18% YoY increase to $509m while US revenue went up by 19% to $302m.

US Government revenue were recorded at $225m for Q4 2022 while sales from the government sector stood at $293m during the same period

Adjusted income from operations in the reported quarter was $114m and adjusted free cash flow was $76m.

Karp added: “A threshold has been crossed, and this is the start of our next chapter. We expect to generate a profit for the current fiscal year, our first profitable year in the history of our company.”

For Q1 2023, Palantir has forecasted revenue to be in the range of $503m to $507m while the revenue for 2023 is expected to fall between $2.180bn and $2.230bn. (Source: army-technology.com)

 

14 Feb 23. CAE reports third quarter fiscal 2023 results. 

• Revenue of $1,020.3m vs. $848.7m in prior year
• Earnings per share (EPS) of $0.25 vs. $0.08 in prior year
• Adjusted EPS(1) of $0.28 vs. $0.19 in prior year
• Operating income of $145.9m vs. $65.5m in prior year
• Adjusted segment operating income(1) of $160.6m vs. $112.7m in prior year
• Adjusted order intake(1) of $1,240.1m for a record $10.8bn adjusted backlog(1) and 1.22x book-to-sales ratio(1)
• Net debt-to-adjusted EBITDA(1) of 3.74x vs. 4.17x at the end of the preceding quarter
• FY2023 outlook reiterated for mid-20% consolidated adjusted segment operating income growth

CAE Inc. (CAE or the Company) today reported revenue of $1,020.3m for the third quarter of fiscal 2023, compared with $848.7m in the third quarter last year. Third quarter EPS was $0.25 compared to $0.08 last year. Adjusted EPS in the third quarter was $0.28, including an approximate $0.02 positive impact as a result of gains on the reversal of impairment of non-financial assets following their repurposing and optimization, compared to $0.19 last year.

Operating income this quarter was $145.9m (14.3% of revenue(1)), compared to $65.5m (7.7% of revenue) last year. Third quarter adjusted segment operating income was $160.6 m (15.7% of revenue(1)) compared to $112.7m (13.3% of revenue) last year. All financial information is in Canadian dollars unless otherwise indicated.

“We had strong results in the third quarter, driven by Civil’s double-digit growth, Defense’s sequential improvement, and Healthcare’s increased profitability,” said Marc Parent, CAE’s President and Chief Executive Officer. “We ensured our path to future growth, securing over $1.2bn in total adjusted order intake for a record $10.8bn adjusted backlog and 1.22 times book-to-sales ratio. In Civil, we booked $713m in orders for a 1.38 times book-to-sales ratio, including long-term agreements globally for aviation training and our flight operations management platform solutions. We also sold 14 full-flight simulators, bringing our year-to-date tally to 43. In Defense, we booked orders for training and mission support solutions valued at $477m for 1.05 times book-to-sales, marking the sixth consecutive quarter this ratio has been above one.”

On CAE’s outlook, Marc Parent added, “we are excited about Civil’s prospects as it builds on CAE’s industry leadership, and we expect to see significant growth during and beyond the ongoing global market recovery. The sequential growth of Defense, along with positively trending bookings and backlog renewals, adds to our confidence in our multi-year view. Healthcare continues to gain a larger share in the simulation and training market, and we expect its top- and bottom-line growth to continue. In parallel, we are further bolstering our financial position and are on track to reach our leverage target of less than three times net debt-to-adjusted EBITDA by mid-fiscal 2024. We continue to expect mid-twenty percent consolidated adjusted segment operating income growth this fiscal year and reiterate our long-term target of a three-year EPS compound growth rate in the mid-twenty percent range.”

Civil Aviation (Civil)

Third quarter Civil revenue was $517.4m vs. $390.1m in the third quarter last year. Operating income was $117.2m (22.7% of revenue) compared to $57.1m (14.6% of revenue) in the same quarter last year. Adjusted segment operating income was $131.4m (25.4% of revenue) compared to $83.4m (21.4% of revenue) in the third quarter last year. During the quarter, Civil delivered nine full-flight simulators (FFSs) to customers and third quarter Civil training centre utilization was 73%.

During the quarter, Civil signed training solutions contracts valued at $713.0m, including contracts for 14 FFS sales for a total of 43 as of the end of the third quarter of the fiscal year. Notable training contracts for the quarter include long-term commercial aviation training agreements with GOL Airlines and MESA Airlines. They also include a long-term business aviation training agreement with Delux Public Charter LLC (JSX Air). In flight operations software solutions, notable contracts include a five-year contract for CAE’s next-gen crew and operations manager solution suite at Ethiopian Airlines, and since the end of the quarter, an agreement for its next-gen operations solutions with Frontier Airlines.

The Civil book-to-sales ratio was 1.38 times for the quarter and 1.29 times for the last 12 months. The Civil adjusted backlog at the end of the quarter was a record $5.6bn.

Defense and Security (Defense)

Third quarter Defense revenue was $452.5m, up 6% compared to the third quarter last year. Operating income was $24.9m (5.5% of revenue) compared to $16.5m (3.9% of revenue) in the same quarter last year. Adjusted segment operating income was $25.4m (5.6% of revenue), compared to $32.0m (7.5% of revenue) in the third quarter last year.

Defense booked orders for $476.7m during the quarter, marking the sixth consecutive quarter with a book-to-sales ratio above one, and it continued to book new business across all domains. Notable orders in the Air domain include the provision of a flight training device and maintenance and logistics support for the Royal Canadian Air Force’s CH-149 Cormorant search-and-rescue helicopter, the continuation of aircrew training on the KC-135 Stratotanker and C-130H Hercules for the United States Air Force, and international flight training device upgrades for the F-16 fighter jet and CH-53G heavy-lift transport helicopter. In the Land domain, Defense was awarded funding for its Joint Terminal Control Training Rehearsal System (JTC TRS) solution which builds on the success of its previous funding award for a new virtual training capability for soldiers to the US Army on the Soldier Virtual Trainer prototype contract. Defense also booked strategic orders in the Sea, Space and Cyber domains, highlighted by the proliferation of CAE’s solutions for distributed, networked and cybersecure mission training via the US Air Force’s Simulator Common Architecture Requirements and Standards (SCARS) program, and since the end of the quarter, its work with Lockheed Martin on the Canadian Surface Combatant (CSC) ship program.

Defense continued to build on its foundation of US Army support with an award for the competitive re-compete of the Fixed-Wing Flight Training Service. This program involves the provision of comprehensive initial and recurrent training for more than 600 U.S. Army and U.S. Air Force fixed-wing pilots annually at the CAE Dothan Training Center in Dothan, Alabama. The approximate total value of the base contract and options is US$250m, with a period of performance effective CAE’s fourth quarter through 2032. Accordingly, this contract will be reflected in Defense’s fourth quarter order intake.

The Defense book-to-sales ratio was 1.05 times for the quarter and 1.25 times for the last 12 months (excluding contract options). The Defense adjusted backlog, including options and CAE’s interest in joint ventures, at the end of the quarter was a record $5.1 bn. The Defense pipeline remains strong with some $7.3 bn of bids and proposals pending customer decisions.

Healthcare

Third quarter Healthcare revenue was $50.4m, vs. $32.1m in the third quarter last year. Operating income was $3.8m (7.5% of revenue) compared to a loss of $8.1 m in the same quarter last year. Adjusted segment operating income was $3.8 m (7.5% of revenue) compared to a loss of $2.7m in the third quarter last year.

During the quarter, Healthcare secured several agreements with universities and colleges for its advanced patient simulators and customizable centre management platform. It also expanded its relationship with the American Society of Anesthesiologists through a commitment to develop additional SimSTAT modules for the Maintenance of Certification in Anesthesiology (MoCA).

Additional financial highlights

CAE incurred restructuring, integration and acquisition costs of $4.9m during the third quarter of fiscal 2023 relating mainly to the fiscal 2022 acquisition of Sabre’s AirCentre airline operations portfolio (AirCentre), and including a $9.8m impairment reversal of non-financial assets following their repurposing and optimization.

Net cash provided by operating activities was $252.4m for the quarter, compared to $309.6 m in the third quarter last year. Free cash flow(1) was $237.7 m for the quarter compared to $282.1m in the third quarter last year. The decrease was mainly due to a higher investment in non-cash working capital partially offset by higher cash provided by operating activities and lower payments to equity accounted investees.

Income tax expense this quarter amounted to $17.1m, representing an effective tax rate of 18%, compared to an effective tax rate of 8% for the third quarter last year. The income tax rate was impacted by restructuring, integration and acquisition costs, and excluding these costs, the income tax rate used to determine adjusted net income and adjusted EPS was 19% this quarter as compared to 20% in the third quarter of last year.

Growth and maintenance capital expenditures(1) totaled $63.4m this quarter.

Net debt(1) at the end of the quarter was $3,073.0m for a net debt-to-adjusted EBITDA(1) of 3.74 times. This compares to net debt of $3,194.6m and a net debt-to-adjusted EBITDA of 4.17 times at the end of the preceding quarter. CAE’s total available liquidity as at December 31, 2022 was approximately $1.4bn.

Net finance expense this quarter amounted to $48.8m, compared to $41.3 m in the preceding quarter and $34.5m in the third quarter last year. The increased finance expense relative to both prior periods mainly reflects the impact of higher interest rates on our variable rate debt instruments.

Adjusted return on capital employed(1) was 5.5% this quarter compared to 5.1% last quarter and 6.1% in the third quarter last year.

Management outlook

Since 2020, CAE has been carrying out a growth strategy which it believes will enable it to emerge from the pandemic a bigger, stronger, and more profitable company than ever before. Specifically, as a waypoint along its journey to cyclical recovery and beyond, the Company is targeting a consolidated adjusted segment operating margin of approximately 17% by the time its markets are generally recovered, with steady room for further improvement thereafter. It expects to reach this level of profitability on a significantly larger base of business with a post-pandemic capital structure that will allow the Company to sustain ample flexibility to balance further investments in its future with capital returns for shareholders. The Company is targeting a three-year (FY23-FY25) EPS compound growth rate in the mid-20% range.

Current headwinds include remaining travel restrictions related to the global pandemic, geopolitical uncertainty, decades-high inflation, and elevated interest rates. Notwithstanding the influence on the timing and rate of market recovery these factors may have, management maintains a highly positive view of its growth potential over a multi-year period.

Expected secular trends are highly favorable for all three of the Company’s core business segments. Greater desire by airlines to entrust CAE with their critical training and digital operational support and crew management needs, higher expected pilot demand and strong business jet travel demand are enduring positives for the Civil business. Management believes the defence sector is in the early stages of an extended up-cycle driven by geopolitical tensions and increased commitments by governments to defence modernization and readiness. Tailwinds that favour CAE’s Defense business include the shift in national defence priorities to an increased focus on near-peer threats and the recognition of the sharply increased need for the kinds of digital immersion-based synthetic solutions that draw from CAE’s advances in commercial aviation simulation and training. Healthcare is poised to leverage opportunities presented by high demand for nurses and increased opportunities for medical simulation.

The Company expects the rate of Civil’s recovery to pre-pandemic levels and beyond to continue to be driven in large part by the easing of remaining travel restrictions, especially in Asia, where China represents a significant part of a broader global recovery. Civil’s strong commercial aviation training performance in the Americas as well as renewed FFS order activity provide a compelling blueprint for the potential of a broader global commercial aviation recovery. For the remainder of fiscal 2023, management expects sequentially higher Civil adjusted segment operating income growth on higher FFS deliveries to customers, ongoing simulator deployments to CAE’s global training network, and seasonally higher training demand. In addition to continuing to grow its share of the aviation training market and expanding its position in digital flight services, Civil expects to maintain its leading share of FFS sales and to deliver more than 45 FFSs for the year to customers worldwide.

CAE’s Defense segment is on a multi-year path to becoming a bigger and more profitable business. In the last two years, Defense has established itself as the world’s leading pure-play, platform agnostic, training and simulation business, providing solutions across all five domains. It is uniquely positioned to draw on CAE’s innovations in commercial aviation to transform training with the application of advanced analytics and leading-edge technologies. This is expected to bring increased potential to capture business around the world, accelerated by the acquisition of L3H MT and the expanded capability and customer set this combination provides. This is evidenced by the trailing 12-month book-to-sales ratio of 1.25 times. Current geopolitical events have galvanized national defence priorities in the U.S. and across NATO, and management expects increased spending and specific prioritization on defence readiness to translate into additional opportunities for CAE in the years ahead. Defense is expected to continue making good progress with the integration of the L3H MT acquisition in fiscal 2023 and to fully realize $35 to $45m of cost synergies by fiscal 2024.

In the near term, Defense is expected to continue working its way through the lagging effects of a protracted period of lower than one annual book-to-sales ratios – especially for its higher margin products solutions. Defense also anticipates the prevailing macroeconomic headwinds, including supply chain and labor challenges, to persist into the next fiscal year, and that order delays will continue to be a factor, particularly in light of potential U.S. government budget appropriation issues. For the remainder of the current fiscal year, Defense expects to see sequentially improved performance on the expectation that some delayed orders will come to fruition, it will execute on programs in adjusted backlog and partially mitigate macroeconomic impacts with internal cost reductions and efficiency initiatives. CAE continues to expect superior Defense growth over a multi-year period to be driven by the translation of higher-margin order intake and bid activity into revenue, and the progressive realization of synergies related to the L3H MT integration.

In Healthcare, management sees potential to accelerate value creation as it gains share in the healthcare simulation and training market and continues to build on its top- and bottom-line growth momentum.

For the current fiscal year, CAE reiterates its expectation to deliver mid-20% consolidated adjusted segment operating income growth, primarily driven by its Civil business.

Total capital expenditures are expected to be approximately $250m in fiscal 2023, mainly in support of market-led, organic investments. The Company usually sees a higher investment in non-cash working capital accounts in the first half of the fiscal year, and as in previous years, management expects a portion of the non-cash working capital investment to reverse in the second half. The Company continues to target a 100% conversion of adjusted net income to free cash flow for the year. Having recently concluded a larger-than-usual inorganic growth investment cycle over the last two years, management is now focused on organic investments in lockstep with customer demand, the integration and ramp up of recent investments, and deleveraging its balance sheet. CAE continues to expect net debt-to-adjusted EBITDA to decrease to a ratio of below three times by the middle of next fiscal year (FY2024), at which time it expects to be in position to consider reinstating capital returns to shareholders. CAE expects its annual effective income tax rate to be approximately 22%.

Management’s outlook for fiscal 2023 and the above targets and expectations constitute forward-looking statements within the meaning of applicable securities laws, and are based on a number of assumptions, including in relation to prevailing market conditions, macroeconomic and geopolitical factors, supply chains and labor markets, and the timing and degree of easing of global COVID-19-related mobility restrictions. Air travel is a major driver for CAE’s business and management relies on analysis from the International Air Transport Association (IATA) to inform its assumptions about the rate and profile of recovery in its key civil aviation market. Additionally, as the basis of its fiscal 2023 outlook, management assumes no further disruptions to the global economy, air traffic, CAE’s operations, and its ability to deliver products and services. Expectations are also subject to a number of risks and uncertainties and based on assumptions about customer receptivity to CAE’s training solutions and operational support solutions as well as material assumptions contained in this press release, quarterly Management’s Discussion and Analysis (MD&A) and in CAE’s fiscal 2022 MD&A, all available on our website (www.cae.com), SEDAR (www.sedar.com) and EDGAR (www.sec.gov). Please see the sections below entitled: “Caution concerning forward-looking statements”, “Material assumptions” and “Material risks”.

 

14 Feb 23. Leidos Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2022 Results.

• Revenues: $3.7bn for fourth quarter (up 6% year-over-year); $14.4bn for the year (up 5% year-over-year)
• Diluted Earnings per Share: $1.28 for fourth quarter (up 4% year-over-year); $4.96 for the year (down 6% year-over-year)
• Non-GAAP Diluted Earnings per Share: $1.83 for fourth quarter (up 17% year-over-year); $6.60 for the year (down $0.02 year-over-year)
• Cash Flows from Operations: $105m for fourth quarter; $1.0bn for the year
• Initial FY23 guidance reflects growth in revenues and solid margin in line with long-term model

Leidos Holdings, Inc. (NYSE: LDOS), a FORTUNE 500® technology, engineering, and science company, today reported financial results for the fourth quarter and fiscal year 2022.

Roger Krone, Leidos Chairman and Chief Executive Officer, commented: “The fourth quarter marked a strong finish to a banner year for Leidos, with record revenue and non-GAAP diluted EPS driving us to the top end of our revenue guidance range and beyond our EPS guidance range for the year. Our performance validated that our diversified and resilient portfolio and our investments in technology and innovation are positioning us for growth in key customer missions, including digital modernization, cyber, hypersonics, and force protection. Each and every day, our 45,000 people are helping our customers execute on important missions and meet the world’s most complex challenges.”

Summary Operating Results

Revenues were $3.70bn for the quarter and $14.40bn for the year, up 6% and 5% over the comparable 2021 periods, respectively. For the quarter and the year, all segments grew, led by broad-based strength across the Civil segment.

Net income was $180m, or $1.28 per diluted share, for the quarter, and $693m, or $4.96 per diluted share, for the year. Net income margin for the quarter was 4.9%, down 10 basis points year-over-year. Net income in the quarter reflected impairment charges of $37m incurred by exiting and consolidating underutilized leased spaces as part of an ongoing facility rationalization effort. Net income margin for the year decreased to 4.8% from 5.5% in fiscal year 2021, primarily as a result of the $26m net benefit from an adjustment to legal reserves related to the Mission Support Alliance (MSA) joint venture recorded in the first quarter of fiscal year 2021 and the $19m of expense related to an adverse arbitration ruling in the second quarter of fiscal year 2022. For the quarter net income was up 2%, and diluted EPS was up 4% compared to the fourth quarter of fiscal year 2021. For the year net income and diluted EPS were down 9% and 6%, respectively, compared to fiscal year 2021.

In addition, net interest expense in the quarter increased to $51m from $46m in the fourth quarter of 2021. The weighted average diluted share count for the quarter was 138m, compared to 142m in the prior year quarter, primarily as a result of the $500m accelerated share repurchase agreement implemented in the first quarter of fiscal year 2022.

Adjusted EBITDA was $397m for the fourth quarter (10.7% margin), up 11% over the fourth quarter of 2021. For the year adjusted EBITDA was $1.49bn (10.4% margin), down 1% over fiscal year 2021. Non-GAAP net income was $255 m for the quarter and $919m for the year, which generated non-GAAP diluted EPS of $1.83 for the quarter and $6.60 for the year. For the quarter, non-GAAP net income was up 14%, and non-GAAP diluted EPS was up 17% compared to the fourth quarter of fiscal year 2021. For the year non-GAAP net income was down 3%, and non-GAAP diluted EPS was essentially flat compared to fiscal year 2021.

Cash Flow Summary

Net cash provided by operating activities for the quarter was $105m; after adjusting for payments for property, equipment and software, quarterly free cash flow was $52m. For the year net cash provided by operating activities was $986m (144% operating cash flow conversion ratio), and free cash flow was $857m (94% free cash flow conversion ratio).

For the quarter Leidos used $258m in investing activities and $135m in financing activities. For the year Leidos used $313m in investing activities and $865m in financing activities. During the quarter Leidos completed the acquisition of Cobham Special Mission for a preliminary purchase consideration of approximately $190 m United States dollars, net of $6m of cash acquired, which is subject to working capital adjustments. Cobham Special Mission provides airborne border surveillance and search and rescue services to the Australian Federal Government.

During the fiscal year 2022, Leidos returned $741m to shareholders, including $199m as part of its regular quarterly cash dividend program and $542m in share repurchases. As of December 30, 2022, the Company had $516m in cash and cash equivalents and $4.9bn in debt.

On February 10, 2023, the Leidos Board of Directors declared that Leidos will pay a cash dividend of $0.36 per share on March 31, 2023, to stockholders of record at the close of business on March 15, 2023.

New Business Awards

Net bookings totaled $3.7bn in the fourth quarter of fiscal year 2022 and $15.4bn for fiscal year 2022, representing book-to-bill ratios of 1.0 and 1.1, respectively. As a result, backlog at the end of fiscal year 2022 was $35.8 bn, of which a record $8.4bn was funded. Included in the quarterly bookings were several notable awards:

• Expendable Hypersonic Multi-mission ISR and Strike (Mayhem). Under a $334m, 51-month contract, Leidos will assist the U.S. Air Force Research Laboratory (AFRL) in designing and developing a large-class air-breathing hypersonic system that surpasses current air-breathing systems in range and payload. The Mayhem system will use a scramjet engine to generate thrust, propelling the vehicle across long distances at speeds greater than Mach 5. Leidos will leverage its corporate depth in digital engineering (DE) and model based systems engineering (MBSE) to develop the concept from idea to an operational system.
• Social Security Administration (SSA) IT Support Services Contract II (ITSSC2). The SSA awarded Leidos two new ITSSC2 task orders to provide systems and infrastructure support for the SSA’s Deputy Commissioner of Systems (DCS) and the Office of Systems Operations and Hardware Engineering (OSOHE). The indefinite delivery/indefinite quantity, time and material task orders have a combined estimated value of $1.5bn over approximately 67 months if all options are exercised.
• U.S. Space Development Agency (SDA) Tranche 1 Tracking Layer. Leidos received a subcontract with Northrop Grumman Strategic Space Systems to develop hypersonic defense sensors for the SDA. Through this award, the Leidos team will develop and build the sensor payload for a proliferated constellation of Low-Earth Orbit satellites for the Tranche 1 Tracking Layer. The Tracking Layer constellation will detect and track advanced hypersonic and ballistic missile threats as part of SDA’s missile defense architecture.

Forward Guidance

Fiscal year 2023 guidance for cash flows provided by operating activities reflects approximately $300m of additional cash taxes compared to fiscal year 2022, primarily related to the Tax Cuts and Jobs Act of 2017 provision requiring the capitalization and amortization of research and development costs that went into effect on January 1, 2022. While awaiting potential Congressional action in 2022, Leidos accrued, but did not pay the incremental 2022 cash taxes and now expects to make payments in 2023 to cover both the 2022 and 2023 tax amounts. The actual impact on cash flows provided by operating activities will depend on the amount of research and development costs Leidos will incur, whether Congress modifies or repeals this provision and whether new guidance and interpretive rules are issued by the US Treasury, among other factors.

For information regarding adjusted EBITDA margin and non-GAAP diluted EPS, see the related explanations and reconciliations to GAAP measures included elsewhere in this release.

Leidos does not provide a reconciliation of forward-looking adjusted EBITDA margins or non-GAAP diluted EPS to net income margin or diluted EPS, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate projected net income may vary significantly based on actual events, Leidos is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income margin, diluted EPS or net income attributable to Leidos shareholders at this time. The amounts of these deductions may be material and, therefore, could result in projected net income margin, net income attributable to Leidos shareholders and diluted EPS being materially less than projected adjusted EBITDA margins and non-GAAP diluted EPS. (Source: PR Newswire)

 

14 Feb 23. Indian Startup Garuda Aerospace Raises $22m. Drone startup Garuda Aerospace has raised $22m in an early stage funding round led by venture capital firm SphitiCap. The Series A funding round provides Garuda Aerospace a $250-m valuation. SphitiCap invested $12m in the round. Other investors included Canada-based Ocgrow Ventures, the United Kingdom-based Silverstone Capital, an undisclosed infra Development Company, high net-worth individuals (HNI) and angel investors.

Speaking on the funding Agnishwar Jayaprakash, Founder and CEO said: “Garuda Aerospace aims to sell 25,000 drones in the next 18 months and is looking forward to exporting 10,000 drones to about 100 countries in the next 15 months.”

Pallav Kumar Singh, Managing Partner, SphitiCap said: “Given the evolving preferences and horizontal expansion with the usage of drones in several sectors, there is a vision of promising growth beneficial for both companies. With this, drones will be playing a major in nearly every sector in the future.”

Founded in 2015, Garuda Aerospace manufactures and sells drones (55 percent of revenues) and also offers ‘drone-as-a-service’. Besides India, it currently does business in Malaysia, Singapore, the United States, Panama, and the United Arab Emirates.

The company will be closing the financial year ending March 2023 with Rs 40 crore in revenues – a number he pegs will reach Rs. 800-1,000 crore by FY24.

Garuda Aerospace will use the new capital to scale up and expand its operations, while also accelerating its development of building advanced drone solutions for the armed forces and the aerospace sector in collaboration with global companies.

The funds will also be used for the skilling and training of drone pilots and helps create employment with deepening its footprints in Tier II and III cities. Beyond catering its sales and services in industries of agriculture, defense and industrial plants, Garuda Aerospace also pulls revenue out of a new segment of drone pilot training courses.  (Source: UAS VISION/ CIO Insider)

 

14 Feb 23. Mirion Technologies Announces Fourth Quarter and Fiscal Year 2022 Financial Results and Provides Fiscal Year 2023 Financial Guidance.

• Revenues for the fourth quarter increased 22.6% to $217.9m, compared to $177.8m in the same period in 2021. Adjusted revenues increased 20.5% compared to the fourth quarter of 2021.
• GAAP net loss was $159.7m in the fourth quarter. Adjusted EBITDA was $56.4m for the same period.
• GAAP net loss per share for the fourth quarter was $0.85. Adjusted earnings per share for the same period was $0.11.
• The company initiated fiscal year 2023 guidance of 6% to 9% revenue growth, adjusted EBITDA of $172m to $182m and adjusted EPS of $0.28 to $0.34.

Mirion Technologies, Inc. (“Mirion,” “we” or the “company”) (NYSE: MIR), a global provider of radiation detection, measurement, analysis and monitoring solutions to the medical, nuclear, defense, and research end markets, today announced results for the fourth quarter and fiscal year ended December 31, 2022.

Mirion reported full year order growth for 2022 of approximately 8% compared to 2021. Backlog was $737.4m as of December 31, 2022, reflecting 10% year-over-year growth, supported by strong engagement with the company’s diverse portfolio of solutions and supportive trends across its end markets. Order growth and backlog exclude the impact of the Hanhikivi project termination in the second quarter of 2022.

“2022 was a dynamic year for Mirion, as we completed our first full year as a public company. Our teams responded well to the myriad of challenges faced throughout the year and we delivered a strong finish to 2022,” stated Thomas Logan, Mirion’s Chief Executive Officer. “Overall, I am very pleased with our fourth quarter results, which were highlighted by substantial revenue growth across both our reporting segments. The Medical business delivered solid top-line growth in all three e and meaningful margin expansion compared to the same period last year. Industrial took a noticeable step forward as well, supported by improved operating conditions and strong execution by our team. We exited 2022 with good momentum and the business is poised to deliver a strong 2023.”

“I am incredibly proud of the growth that Mirion delivered in the fourth quarter. End market demand remains quite healthy and the team has built a strong backlog position to support future growth,” added Larry Kingsley, Chairman of Mirion’s Board of Directors. “I believe that Mirion is well-positioned going into 2023 and beyond, supported by the company’s strategic market position and diverse portfolio of essential products and services.”

The Company recorded goodwill impairment charges of $87.3m in its Medical segment and $69.3m in its Industrial segment as a result of its required annual impairment test. The impairment charges represented approximately 10% of the company’s total goodwill balance as of December 31, 2022.

2023 Outlook

“Today, we are providing initial financial guidance for 2023. We are expecting to build off the momentum we established coming out of the fourth quarter,” continued Mr. Logan. “We are anticipating solid top-line growth in 2023, supported by healthy end markets and our robust backlog position. We have taken a thoughtful approach to setting our guidance and believe we have the right strategy in place to execute on our expectations.”

Mirion has issued the following guidance for the fiscal year ending December 31, 2023:

• Reported revenue growth of 6% to 9%, organic growth of 4% to 7%
• Adjusted EBITDA of $172m – $182m
• Adjusted EPS of $0.28 – $0.34
• Adjusted free cash flow of $50m – $70m

Organic revenue growth is expected at 4% to 7%. Inorganic revenue growth is expected to be approximately 1.5% including benefits from the SIS acquisition, offset by the Biodex physical rehab divestiture, expected to close during the first quarter. Foreign exchange rates are expected to result in a positive 0.5% impact to revenue growth. The guidance for organic revenue growth excludes the impact of foreign exchange rates as well as mergers, acquisitions and divestitures. Other modeling and guidance assumptions include the following:

• Euro to U.S. Dollar foreign exchange conversion rate of 1.07
• Depreciation of approximately $30m
• Net interest expense of approximately $68m (approximately $64m of cash interest)
• Capital expenditures of approximately $40m
• Effective tax rate of between 25% and 27%
• Approximately 181m shares of Class A common stock outstanding (excludes 8.0m shares of Class B common stock, 27.2m warrants, 18.8m founder shares, subject to vesting, 1.7m restricted stock units, 0.4m performance stock units and a further 23.6m shares reserved for future equity awards (subject to annual automatic increases)), all as of December 31, 2022

The company’s guidance contains forward-looking statements and actual results may differ materially as a result of known and unknown uncertainties and risks, including those set forth below under the heading “Forward-Looking Statements.” In addition, forward-looking non-GAAP financial measures are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in projecting and quantifying the various adjusting items necessary for such reconciliations, such as stock-based compensation expense, amortization and depreciation expense and purchase accounting adjustments, that have not yet occurred, are out of Mirion’s control, or cannot be reasonably predicted. Accordingly, reconciliations of our guidance for adjusted revenue, organic adjusted revenue adjusted EBITDA, adjusted EPS and adjusted free cash flow are not available without unreasonable effort. (Source: BUSINESS WIRE)

 

13 Feb 23. Tel-Instrument Electronics Corp. Reports Financial Results For Third Quarter FY 2023. Tel-Instrument Electronics Corp. (“Tel-Instrument,” “TIC,” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today reported a net income of $393K ($0.10 per basic and $0.08 per diluted share) on revenues of $2.3m for the third quarter of 2023 fiscal year, ended December 31, 2022.

Notes On Third Quarter:

• Revenues for the third quarter were $2.3m, a 27% decline from $3.2m in the year ago quarter.
• Gross margin percentage declined to 38% versus 44% in the year ago quarter. This decline was mainly volume related.
• Operating expenses decreased by $156K, a 14% decline versus the year ago quarter.
• Operating loss was $66K as compared to an operating profit of $293K in the year ago quarter.
• Other income (expense) was $563K income as compared to $51K expense in the prior year ago quarter. The third quarter results included a $628K Employee Retention Tax Credit (“ERTC”).
• Net income was $393K or $0.10 per share, compared to net income of $195K or $0.04 per share in the year-ago quarter.
• Backlog increased to $5.6m at the end of the third quarter, a $2.3m increase from the prior quarter-end.
• Low-rate initial production of the SDR/OMNI commenced in December 2022.
• Aeroflex appeal hearing is set for March 30, 2023.

Mr. Jeffrey O’Hara, Tel-Instrument’s President and CEO commented, “This has been the fourth consecutive quarter that has been negatively impacted by parts shortages. Due to the chip shortage situation, vendor lead times have tripled to as long as nine months in some cases. This prevented us from shipping certain high dollar orders in the last quarter. We have been ordering additional components from our vendors to mitigate the impact of extended lead times. This has resulted in an inventory increase of almost $500K since the start of the year. We expect to have sufficient parts on hand to reach normal production levels starting in the first quarter of Fiscal Year 2024 which starts in April. We also have several major contracts pending. including a large AN/USM-708 order for the F-35 program and a follow-on T-4530i order from Germany. With the commencement of SDR/OMNI shipments, we are projecting a return to solid profitability next fiscal year and strong revenue and profitability growth once we start shipping Navy CRAFT ECP Upgrade KITS.

We are extremely excited by the prospects of the SDR/OMNI which commenced initial low-rate production in December. We continue to conduct product demonstrations with the major Primes (“major customers”) and airlines. The reaction from all customers has been extremely positive. We expect to ship $300K of these test sets in the fourth quarter. The SDR/OMNI is the only multi-purpose avionic test set in the market that meets Class 1 military environmental specification. We believe that this will be a strong competitor in both commercial and military avionic and communication test set markets.

The CRAFT ECP contract will be critical for the Company as this is expected to generate millions of dollars of annual production revenues, starting when the engineering work is completed. The CRAFT engineering effort is a funded $2.9m program and is expected to take two years to complete. The next major milestone is the Critical Design Review (“CDR”) which is scheduled to take place in April 2023. This will generate almost $700K of non-recurring engineering revenues. The Lockheed Martin F-35 MADL Test Set development program has been completed. This is expected to generate ongoing production revenues in the $600K-$700K range. Finally, we have been in negotiations with the U.S. Army on a software upgrade for the TS-4530A product to include new functionality such as Mode 5 Level 2B and compatibility with European CCI (“COMSEC Controlled Item”) devices. This software upgrade effort is expected to result in a funded engineering program.

The Aeroflex appeal hearing has been set for March 30, 2023 with a final decision expected this summer. We believe that we have excellent arguments to reduce or reverse the judgment. Regardless of the outcome, we look forward to resolving this case and stopping the accrual of judgment interest.”

About Tel-Instrument Electronics Corp.

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com. (Source: BUSINESS WIRE)

 

13 Feb 23. SkyWater Technology Reports Fourth Quarter and Full Year 2022 Results. SkyWater Technology (NASDAQ: SKYT), the trusted technology realization partner, today announced financial results for the fourth quarter and full year 2022, ended January 1, 2023.

Highlights for Q4 2022:

• Revenue increased 69% year-over-year to a record $65.1m.
• Gross margin increased to 25.4% on a GAAP basis, compared to (43.1)% in Q4 2021, and increased to 26.2% on a non-GAAP basis, compared to (6.1)% in Q4 2021.
• Net loss to shareholders of $3.0m, or $(0.07) per share on a GAAP basis, and net loss to shareholders of $1.5m, or $(0.03) per share on a non-GAAP basis.
• Adjusted EBITDA of $10.3 m, or 15.9% of revenue.

Highlights for Fiscal 2022:

• Revenue increased 31% year-over-year to a record $212.9m.
• Gross margin increased to 12.2% on a GAAP basis, compared to (4.6)% in 2021, and increased to 13.7% on a non-GAAP basis, compared to 2.0% in 2021.
• Net loss to shareholders of $39.6m, or $(0.97) per share on a GAAP basis, and net loss to shareholders of $30.3m, or $(0.74) per share on a non-GAAP basis.
• Adjusted EBITDA of $7.7m, or 3.6% of revenue.

“We are pleased to enter 2023 with growing momentum,” said Thomas Sonderman, SkyWater president and chief executive officer. “2022 was a year in which we achieved a number of our key strategic objectives, including strong revenue growth exceeding our long-term target of 25%, the significant expansion and improved visibility of our pipeline of ATS programs and partnerships and improved operational execution. As these materialized in 2022, we were able to demonstrate the significant operating leverage of our model, generating strong gross margin flow-through and positive adjusted EBITDA.”

Sonderman continued, “As we look ahead, we have a new expected baseline for quarterly revenues of approximately $60 m from which to grow. This is a significant achievement compared to this time last year, a testament to the team’s improved execution driving increased factory efficiency and productivity, along with better pricing in our Wafer Services business. This new baseline, as we enter a challenging macroeconomic environment in 2023, provides the foundation for yet another strong growth year in which we believe we can again achieve revenue growth approaching our long-term target of 25% annually. We believe the growth we expect to achieve in 2023 is largely de-coupled from areas of macroeconomic weakness, as we expect to expand our revenue base above the $60m level with established, funded and relatively secure ATS programs.”

2022 Business Highlights:

• Significant progress on the RH90 program, including completion of the base prototype phase, receipt of the $99m Phase 2 award for productization and qualification, and the securing of additional options and partnerships that firmly establish SkyWater’s role in the important RadHard ecosystem.
• Landmark partnership announced with the State of Indiana and Purdue University to build advanced $1.8bn semiconductor fab.
• Receipt of a $36m grant awarded to Osceola County by the U.S. Economic Development Administration to complete facilitization of our Florida facility, with SkyWater the only semiconductor company beneficiary of this Build Back Better award.
• Strong momentum toward building a stronger domestic semiconductor ecosystem through the CHIPS Act, which successfully passed in August, and for which SkyWater expects to be a key beneficiary for years to come.
• The execution of more favorable terms with our largest historical customer, including increased pricing, improved predictability and visibility and a larger, more profitable base of business from which to grow.
• Important new customer partnerships and progress announced with Google, NanoDX, Weebit Nano, Trusted Semiconductor, Quicklogic, and others as well as in heterogeneous integration programs such as IBAS and our partnerships with DECA and Adeia.
• Conclusion of a fixed revenue government program in Q4, ahead of the original schedule, resulted in a one-time non-cash revenue recognition event of $4.7m, driving upside in ATS revenue and, given no associated cost of revenue, flowed through directly to gross profit and EBITDA for Q4.
• Record results for both ATS and Wafer Services, driving revenues to $213m for the year, with a significantly expanded gross margin profile and positive adjusted EBITDA generation.
• Expansion of our access to capital through $250m shelf registration (with $19m in net equity proceeds raised to date) and new $100m senior secured revolving credit facility that expands our available borrowing capacity.

Q4 2022 Results:

• Revenue: Revenue of $65.1m increased 69% year-over-year. Advanced Technology Services revenue of $47.9m increased 97% year-over-year reflecting the momentum we are gaining with several key customers, as well as a non-recurring, non-cash revenue recognition of $4.7m for the early completion of a fixed-fee program. Advanced Technology Services revenue contained $0.03 m of tool revenue in fourth quarter 2022 and $1.1 m in fourth quarter 2021. Wafer Services revenue of $17.2m increased 21% compared to the fourth quarter of 2021 driven by more favorable pricing and increased volumes.
• Gross Profit (Loss): GAAP gross profit was $16.6m, or 25.4% of revenue, compared to gross loss of $16.6m, or (43.1)% of revenue, in the fourth quarter of 2021. GAAP gross loss for the fourth quarter of 2021 included a $13.4m inventory write-down charge for temperature differential sensing wafers. Cost of revenues in the fourth quarter of 2022 contained $2.7m for heterogeneous integration and $1.4m in depreciation for the radiation hardened facility. Non-GAAP gross profit was $17.0m, or 26.2% of revenue, compared to gross loss of $2.3m, or (6.1)% of revenue, in the fourth quarter of 2021.
• Net Loss: GAAP net loss to shareholders of $3.0m, or $(0.07) per share, compared to a net loss to shareholders of $27.0m, or $(0.69) per share, in the fourth quarter of 2021. Non-GAAP net loss to shareholders of $1.5m, or $(0.03) per share, compared to a net loss to shareholders of $11.2m, or $(0.28) per share, in the fourth quarter of 2021.
• Adjusted EBITDA: Adjusted EBITDA was $10.3m, or 15.9% of revenue, compared to $(4.7)m or (12.3)% of revenue in the fourth quarter of 2021.
• Balance Sheet: Cash and cash equivalents of $30.0m compared to $12.9m from January 2, 2022.

A reconciliation between historical GAAP and non-GAAP information is contained in the tables below in the section titled, “Non-GAAP Financial Measures.”

About SkyWater Technology

SkyWater (NASDAQ: SKYT) is a U.S. investor-owned semiconductor manufacturer and a DMEA-accredited Category 1A Trusted Foundry. SkyWater’s Technology as a Service model streamlines the path to production for customers with development services, volume production and heterogeneous integration solutions in its world-class U.S. facilities. This pioneering model enables innovators to co-create the next wave of technology with diverse categories including mixed-signal CMOS, ROICs, rad-hard ICs, power management, MEMS, superconducting ICs, photonics, carbon nanotubes and interposers. SkyWater serves growing markets including aerospace & defense, automotive, biomedical, cloud & computing, consumer, industrial and IoT. For more information, visit: www.skywatertechnology.com. (Source: BUSINESS WIRE)

 

14 Feb 23. Aerospace and defense contractor Boecore acquires Orbit Logic.

Boecore is acquiring the company’s product suite and a team of software developers and engineers.

Boecore, a provider of technology solutions to customers within the space, missile defence, hypersonics, and strategic deterrent mission areas, has acquired Orbit Logic, the leading provider of commercial off-the-shelf (COTS) software products and solutions for mission planning, scheduling, and space situational awareness for both commercial and government customers in the aerospace and geospatial intelligence sectors. Boecore is backed by Enlightenment Capital.

Founded in 2000, Orbit Logic brings over two decades of experience providing operationally proven and highly configurable software products that support their customers’ complex mission objectives in a rapidly evolving space environment. With this acquisition, Boecore strengthens its software development and specialised mission operations capabilities and brings new product offerings to better serve its customers.

Thomas Young, Principal at Enlightenment Capital, said: “Orbit Logic has developed a powerful suite of software tools that enable mission success in the space sector. With the addition of this product suite and the talented team of software developers and engineers at Orbit Logic, Boecore is well positioned to continue providing its customers with the critical solutions they need to advance and maintain space superiority.”

Tom Dickson, President of Boecore, added: “This partnership with Orbit Logic helps Boecore expand our product and technical capabilities, and it broadens our relationships and mission expertise within the space domain. The Orbit Logic team has built an outstanding business and has a proven ability to develop and deliver advanced software products to its space customers. We are excited to welcome the Orbit Logic employees to the Boecore family and to continue driving innovation together.”

Alex Herz, Co-Founder and President of Orbit Logic, stated: “We are excited to join the Boecore platform and to continue developing mission-critical products that help our customers deliver on complex space missions. Our cultures are a great fit, with both companies dedicated to innovation in support of our customers’ missions. This partnership will only make our combined solutions more impactful to the space and defence communities, while offering greater opportunities and support to our employees.” (Source: Google/https://satelliteprome.com/)

 

13 Feb 23. INVISIO Year-end bulletin 2022: Back on the growth track – record high sales.

CEO comment: “There was a strong close to the year. Order intake in the last quarter amounted to almost SEK 300 m and sales to about SEK 290 m, the latter being the highest ever in a single quarter. The company is starting 2023 with a record-high order book of more than SEK 625 m. At the same time profitability has strengthened, the operating margin exceeds 20 per cent. The extensive forward-looking investments carried out in recent years relating to broadening the product portfolio, acquiring Racal Acoustics and strengthening both the R&D and sales organizations, have resulted in INVISIO today being considerably stronger. This, combined the current market conditions, means that we predict continued strong sales and order intake in 2023.”

October-December 2022

• Revenue: SEK 289.2m (152.2)
• Gross profit: SEK 166.0m (85.8)
• Gross margin: 57.4 % (56.4)
• EBITDA: SEK 72.5m (12.6)
• EBITDA margin: 25.1 % (8.3)
• Operating profit/loss: SEK 59.8m (1.3)
• Operating margin: 20.7 % (0.9)
• Profit/loss for the period: SEK 42.7m (1.3)
• Earnings per share: SEK 0.95 (0.03)
• Cash flow from operating activities SEK 26.1m (23.1)
• Order intake: SEK 296.4m (160.0)
• Order book: SEK 624.7m (224.7)

January-December 2022

• Revenue: SEK 775.5m (593.0)
• Gross profit: SEK 449.7m (340.4)
• Gross margin: 58.0 % (57.4)
• EBITDA: SEK 113.0m (69.9)
• EBITDA margin: 14.6 % (11.8)
• Operating profit/loss: SEK 65.2m (24.9)
• Operating margin: 8.4 % (4.2)
• Profit/loss for the period: SEK 44.5m (14.5)
• Earnings per share: SEK 0.99 (0.33)
• Cash flow from operating activities SEK 41.7m (91.0)
• Order intake: SEK 1,141.6m (628.1)
• Order book: SEK 624.7m (224.7)

Important events in the quarter

• INVISIO received an order worth SEK 40m for the company’s latest and most advanced personal system from an existing customer.
• Record high order book with orders to the value of SEK 624.7m (224.7).

Important events after the quarter

• The Board of Directors proposes a dividend of SEK 0.70 per share (0.70).
• INVISIO received its largest order to date for the Intercom system from a European NATO country. Order value approximately SEK 40m.
• The company received a breakthrough order on the North American market for the new RA4000 Magna headset. The order value amounts to SEK 42m.

 

10 Feb 23. COMSovereign Announces Reverse Split. COMSovereign Holding Corp. (NASDAQ: COMS and COMSP) (“COMSovereign” or the “Company”), a U.S.-based developer of 4G LTE Advanced and 5G communication systems announced that its Board of Directors approved a 1-for-100 reverse stock split of its common stock shares and that the common stock shares will begin trading on a split-adjusted basis at the commencement of trading today, January 10, 2023. The common stock shares will trade on the Nasdaq Capital Market under the same symbol “COMS” with a new CUSIP number, 205650401.

“We wish to thank our investors for their continued support as we work to refocus COMSovereign’s operations. The approval of the reverse spilt under the Company’s plan to maintain its Nasdaq listing and the replenishment of the Long-Term Incentive Plan are two important elements of our growth strategy. These developments, together with our ongoing refocusing efforts, better position us to realize the great potential we see ahead,” stated David Knight, Chief Executive Officer and President of COMSovereign Holding Corp.

As per the results of the Company’s annual meeting, the Board of Directors approved a 1-for-100 reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share. Every 100 shares of the Company’s issued and outstanding common stock will automatically convert into one share of common stock without any change to the par value of $0.0001 per share. The amount of common stock outstanding will be reduced from approximately 266 m shares to approximately 2.66 m shares. Proportional adjustments will be made to the number of shares of common stock issuable upon exercise of COMSovereign’s outstanding stock options and warrants, as well as the applicable exercise price.

COMSovereign expects that the reverse stock split, which was approved by shareholders at its shareholder meeting on February 8, 2023, will increase the market price per share of the Company’s common stock, bringing the Company into compliance with The Nasdaq Capital Market’s $1.00 minimum bid price requirement. The Company intends to continue to pursue additional actions to satisfy the exchange’s listing requirement including the filing of its 10-Q for the quarter ended September 31, 2022 before the end of February 2023.

Registered stockholders holding pre-split shares of the Company’s common stock are not required to take any action to receive post-split shares. Stockholders owning shares via a broker, bank, trust or other nominee will have their positions automatically adjusted to reflect the reverse stock split, and will not be required to take any action in connection with the reverse stock split.

No fractional shares will be issued in connection with the reverse stock split. Any fractional shares created as a result of the reverse stock split will be rounded up to the nearest whole share for each stockholder. The reverse stock split impacts all holders of COMSovereign’s common stock proportionally and will not impact any shareholders’ percentage ownership of common stock (except as to rounding up changes).

Additional information regarding the reverse stock split is available on the Form 8-K filed February 9, 2023, as well as in the Company’s definitive proxy statement (Form DEF 14A) filed with the United States Securities and Exchange Commission on December 7, 2022. Any additional questions can be directed to the Company’s transfer agent, ClearTrust, at (813) 235-4490 or www.cleartrustonline.com. (Source: PR Newswire)

 

14 Feb 23. Battery Startup NanoGraf Raises $65m Series B to Scale North American Production of Silicon Anode Products. Series B funding comes soon after $10m contract from the U.S. Government to develop the first large-volume silicon oxide anode manufacturing facility in the Midwest.

NanoGraf, an advanced battery materials company and enabler of the world’s most energy-dense lithium-ion 18650 cell, today announced that it has raised $65m in an oversubscribed Series B funding round.

The funding round was co-led by Volta Energy Technologies and CC Industries with participation from GIC, Emerald Technology Ventures, Material Impact, Arosa Capital, Nabtesco Technology Ventures, and TechNexus. Existing investors including Hyde Park Angels, Evergreen Climate Innovations, and Goose Capital also participated in the round. NanoGraf had previously raised a total of $27m in funding from a mix of venture, angel and non-dilutive funding sources.

The US battery supply chain issues brought on by unprecedented market demand is prevalent now more than ever, and NanoGraf is committed to onshoring key strategic components of the battery supply chain, aligned with President Biden’s Inflation Reduction Act for clean energy and infrastructure projects. NanoGraf’s Series B funding supports onshoring of its silicon anode production in Chicago, as well as the continued development, production and supply of advanced lithium-ion technologies.

“NanoGraf’s breakthrough silicon technology further exemplifies our commitment to extending the energy and power performance characteristics of today’s lithium-ion batteries for a sustainable electrified future. I’m incredibly proud of the technologies and products our team has developed over the last 36 months,” said Dr. Francis Wang, CEO of NanoGraf. “This funding not only ensures a domestic supply of a key strategic component of next generation lithium-ion batteries but also enhances our national competitiveness in the global energy storage space.”

The announcement of the Series B funding comes on the heels of two major announcements for NanoGraf. In November of 2022, the company was awarded a $10m contract from the U.S. Government to develop the first advanced silicon anode manufacturing facility in the Midwest. Just one month prior, in October of 2022, NanoGraf set a new industry benchmark for the most energy-dense lithium-ion 18650 cell, with more than 20% higher energy density than the industry’s leading cells today.

“Nanograf’s technology promises to enable higher energy density in lithium-ion batteries, in a way that uses silicon with what is practically drop-in to existing battery manufacturing processes,” said Jeff Chamberlain, CEO of Volta Energy Technologies. “Volta is excited to add Nanograf to its growing portfolio of advanced technology that will be part of the important supply chain of advanced battery and related technology. We are equally enthused by the quality of the group of investors in this round of financing being announced today.”

To learn more about NanoGraf, visit www.nanograf.com

 

10 Feb 23. HII reports 12.1% rise in revenues for full year 2022.

The company has predicted that its shipbuilding revenue will range from $8.4bn to $8.6bn in FY 2023.

Huntington Ingalls Industries (HII) has reported revenues of $10.7bn for fiscal year 2022 (FY22), which is 12.1% higher than $9.5bn in 2021.

HII’s diluted earnings per share for the year, which ended on 31 December 2022, was $14.44 while it was $13.50 in 2021.

Operating income for the full year 2022 stood at $565m, with an operating margin of 5.3%

In addition, net cash generated by the operating activities for the reported year was $766m, along with a free cash flow of $494m. The figures in 2021 were $760m and $449m, respectively.

For the fourth quarter (Q4) of 2022, the company has registered a 5% jump in revenues to $2.8bn, compared with $2.6bn in Q4 of 2021.

Operating income for the last quarter of 2022 was $105m and the operating margin was 3.7%. The Q4 2022 diluted earnings per share was recorded at $3.07.

The company’s total new contracts for Q4 were estimated to be valued at $3.2m, resulting in a total backlog of approximately $47.1bn.

For the new fiscal year 2023, HII has predicted that its shipbuilding revenue will range from $8.4bn to $8.6bn and free cash flow to be between $400m and $450m.

Segment wise, the company’s Ingalls Shipbuilding revenues were $2.6bn, its Newport News Shipbuilding revenues were $5.9bn, and Mission Technologies revenues were $2.4bn.

HII president and CEO Chris Kastner said: “We finished the year with strong fourth quarter cash generation, which keeps us on track to meet our five-year free cash flow commitment of $2.9bn from 2020 to 2024.

“I am looking forward to 2023, as we are expecting to deliver five ships, and we will continue to grow the Mission Technologies division, capitalising on the significant $66bn pipeline.”

In a separate development, HII has started the construction of a new Multi-Class Submarine Production Facility at Newport News Shipbuilding division to support the US Navy’s Columbia- and Virginia-class submarines. (Source: army-technology.com)

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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.

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