Sponsored by TCI International Inc.
16 Mar 23. SIG SAUER announced the acquisition of General Robotics, one of the world’s premier manufacturers of lightweight remote weapon stations and tactical robotics for manned and unmanned platforms and anti-drone applications.
Ron Cohen, President and CEO, SIG SAUER, Inc. began, “This acquisition will greatly enhance SIG SAUER’s growing portfolio of advanced weapon systems. The team at General Robotics is leading the way in the development of intuitive, lightweight remote weapon stations with their battle-proven solution.”
Recently, the U.S. Army selected the SIG SAUER lightweight machine gun (XM250), automatic rifle (XM7), and high-pressure hybrid ammunition for the Next Generation Squad Weapons (NGSW) program, representing a historic step forward in weapons technology. The NGSW program is currently in the early stages of adoption and the U.S. Army will field the weapons at the squad level in 2023.
“The combination of the General Robotics remote weapons station with SIG SAUER’s lightweight squad weapons and high-pressure hybrid ammunition will revolutionize small arms for military forces worldwide. This acquisition exponentially increases the capabilities of our lightweight weapon systems delivering transformative advancements in mobility, greater lethality and battle tested force protection for today’s warfighters,” continued Cohen. “General Robotics and all our employees are honored to join forces with global defense leader SIG SAUER to integrate our platforms into a single solution to support military units around the world,” concluded Shahar Gal, CEO, General Robotics.
16 Mar 23. Airbus exec says checking on health of small suppliers.
Planemaker Airbus (AIR.PA) has measures in place to stabilise global pressure on its supply chains and is making increased checks about the financial health of small suppliers, a senior executive said on Thursday.
Speaking to journalists visiting the planemaker’s second-largest factory in Hamburg, Germany, Airbus Aerostructures Chief Executive Andre Walter did not comment directly on the latest scare in the banking sector, but said Airbus was not seeing a surge in the number of suppliers with financial problems.
“We are closely following our supply chain,” he told the AJPAE French aerospace media association.
Walter, the senior commercial manufacturing executive for Airbus in Germany, said the planemaker ended 2022 with A320-family production of 45 aircraft a month and reiterated plans to introduce the new A321XLR to service in the second quarter of 2024. Airbus has sold 560 of its longest-range single-aisle model.
Shares in Airbus were about 2% higher in late trading.
Hamburg assembles most of the rear half of the fuselage of the planemaker’s best-selling A320/321 family and is also one of four final assembly sites for the whole airplane, alongside Toulouse in France and sites in China and the United States.
It is also playing a lead role in development of the A321XLR.
Walter said Airbus was separating some industrial activities for the XLR from the rest of the single-aisle production system to handle the airplane’s greater complexity, including installation of a novel form of fuel tank.
That includes a dedicated equipment-installation facility which will use increased automation to add the wires, plumbing and arteries that turn the cylindrical rear fuselage into a serviceable airplane structure ready for final assembly.
Asked if Airbus was facing delays in its internal supply chain, including Germany-based Airbus Aerostructures, Walter said it was running smoothly but sometimes having to dip into buffer stocks. Industry sources have cited concerns over some A320 fuselage panels, as well as cabin and electronic parts. (Source: Reuters)
16 Mar 23. Rheinmetall optimistic for 2023 as defence spending rises.
- Operating result up 27% y/y
- CEO: War brings ‘new era’ for company
- Record order intake expected this year
Rheinmetall (RHMG.DE) expects a strong 2023 after the German defence contractor reported its highest-ever operating result for last year due to the Ukraine war and increased defence spending in Europe.
Rheinmetall said the changes in defence policy had put the group in a promising position in terms of an increase in defence capability, with security-related products in Germany and partner countries.
“The war in Europe has also ushered in a new era for Rheinmetall,” Chief Executive Armin Papperger said on Thursday.
Papperger told reporters he expected 2023 to be a record year for order intake, with the backlog increasing substantially from the 26.6bn euros ($28.22bn) last year due to major orders from military customers.
In particular, the weapon and ammunition division order volume more than doubled in 2022 to nearly 3bn euros.
Some projects on the horizon include a tank factory in Ukraine, which Papperger expects Kyiv and Berlin to decide on in the next two months, and a weapons factory in eastern Germany set to be decided within weeks.
Rheinmetall could cover about 50% of Ukraine’s ammunition needs, Papperger said.
Ukraine’s foreign minister this month urged Germany to speed up ammunition supplies, calling shortages the “number one” problem in Ukraine, and said manufacturers were ready to deliver but were waiting for the government to sign contracts.
The company, which recently joined Germany’s DAX blue-chip index, reported 2022 earnings before interest and taxes (EBIT before special items) of 754m euros, up 27% compared with the year before and a new record.
The operating profit margin is expected to reach roughly 12% this year after growing to 11.8% in 2022 from 10.5% in 2021.
Sales hit 6.4bn euros, the company said, confirming preliminary results reported in January that were below Rheinmetall’s 2022 outlook.
The company had cited advance investments in its defence business and a slower-than-expected recovery of automotive markets as reasons for the lower than expected outcome.
The company now expects 2023 sales to reach between 7.4bn and 7.6bn euros before mergers and acquisition effects, it said. ($1 = 0.9425 euros) (Source: Reuters)
16 Mar 23. Rheinmetall is on track for success: all-time earnings high, record order backlog.
Fiscal year 2022
– Consolidated sales grow by 13% to €6,410m
– Operating result (EBIT before special items) increases by 27% to a new record figure of €754m
– Group’s operating margin increases to 11.8%, after 10.5% in the previous year
– Another all-time high in the Rheinmetall order backlog of €26.6bn
– Proposed dividend increases to €4.30 per share, after €3.30 in the previous year
Outlook for 2023: Strong sales growth with stable high margins
– Rheinmetall forecasts sales and earnings growth to continue in fiscal 2023
– Consolidated sales currently expected to grow to between €7.4bn and €7.6bn
– Group’s operating margin expected to be approximately 12%
The Rheinmetall Group, Düsseldorf, continued on its profitable growth trajectory and closed fiscal 2022 with record figures once again. A new high was reached in the operating result (EBIT before special items). The technology group’s order backlog also set a new record, driven by high-volume major orders from military customers, the fact that international automotive manufacturers are awarding more contracts again, and the growing business in industries outside of the automotive sector as a result of the successful transformation.
Consolidated sales increased in all five divisions, but above all in Vehicle Systems and Weapon and Ammunition. With products from these two divisions, Rheinmetall is serving armed forces’ significantly increased demand for operating equipment, especially vehicles and munitions, in the short and medium terms.
Rheinmetall forecasts continuing strong sales and earnings growth for fiscal 2023. Given the changed security policy situation, the Group sees itself in a promising position to play a key role in the upcoming increase in defence capability with security-related products in Germany and partner countries. Thanks to the successful transformation of the mobility business, it is also increasingly tapping into new, auspicious business areas such as hydrogen technology, biometrics and the focus area of “house-warming.”
Armin Papperger, Chief Executive Officer of Rheinmetall AG, comments: “Rheinmetall is taking responsibility in a changing world. In terms of business, we remain on a very good trajectory. Our evolution into an integrated technology group
continues to pay off: We have generated a record result of €754m. We are very proud of this achievement, which is based on growth and profitability in our five divisions.”
Armin Papperger continues: “The epochal shift and the war in Europe has also ushered in a new era for Rheinmetall. Many countries have recognized the urgent need to step up their efforts for security. With our products, we aim to take a share of growing budgets for military equipment. Our technologies are intended to ensure that security – the foundation of our ability to lead our lives in peace and freedom – can be protected. We wish to meet this responsibility. Now, we must deliver. We will do everything in our power to meet our customers’ needs.”
“We have also set ourselves ambitious targets for sustainable, profitable growth in the future. This applies not only to our security business, but also to our civilian activities. The share of sales attributable to alternative drive technologies continues to grow, and we are well on track to handle the transformation away from the combustion engine. We will leverage new growth potential, such as in industrial applications or hydrogen,” says Armin Papperger.
Group’s profits soar with rising sales
In fiscal 2022, the Rheinmetall Group generated consolidated sales of €6,410m. Compared with the previous year’s sales of €5,658m, this is an increase of €752m or 13%. Not including currency effects, the sales growth was 10.5% and thus below the expectations communicated in the fourth quarter of 2022. As already reported in January 2023, these deviations result in particular from advance services agreed with customers in the area of defence technology, the call-offs for which have been postponed until 2023. The slower recovery in global automotive production also led to weaker sales growth in the civil sector. The international share of consolidated sales in the year under review was around 71% after 66% in the previous year.
On December 31, 2022, the Rheinmetall order backlog was €26.6bn, a new high. This figure includes binding orders (order backlog) and orders from framework contracts (frame backlog) as well as the nominated backlog of the civilian business.
The operating result (EBIT before special items) increased by 27% to a record €754bn, after initial estimates in January 2023 – as stated in the ad hoc release – projected growth of more than 20%. This is the highest operating result in the company’s recent history. The Group’s operating margin was 11.8%, which was likewise significantly higher than the previous year’s figure of 10.5%.
Including negative special items of €23m, reported EBIT was €731m and thus around €122m above the previous year’s figure of €608m (2021). The special items primarily resulted from the market valuation of securities held for trade due to the volatile capital market situation in the year under review.
Earnings after taxes grew by around 61% from €332m (2021) to €535m. After deduction of earnings attributable to non-controlling interests of €66 m (previous year: €41m), earnings attributable to shareholders of Rheinmetall AG were €469m, compared with €291m in the previous year. Reported earnings per share therefore increased from €6.72 (2021) to €10.82. Earnings per share from continuing operations increased from €9.04 to €10.64.
On this basis, a dividend payment for fiscal 2022 of €4.30 per share will be proposed to the Annual General Meeting on May 9, 2023, compared with €3.30 in the previous year. This equates to a payout ratio of 40.4% (previous year: 36.5%).
The operating free cash flow (continuing operations) generated in the Rheinmetall Group in fiscal 2022 amounted to €‑152m after €458m in the previous year. Compared with the previous year, this significant decline was mainly driven by strategic materials purchases to avoid shortages and advance performance in the field of security technology and higher capital expenditure.
Vehicle Systems: Sales increase by 21%, operating result improves by 48%
The Vehicle Systems division, which operates in the sector of military wheeled and tracked vehicles, generated sales of €2,270m in fiscal 2022, considerably exceeding the previous year’s figure of €1,883m by around 21%.
Considerable sales contributions resulted in part from the delivery of the first of a total of 209 Lynx infantry fighting vehicles to the Hungarian armed forces. As well as delivering the 3,000th truck as part of the German armed forces’ unprotected transport vehicle project, initial sales were generated with the same customer for the supply of swap body trucks. As in the previous year, a considerable share of sales also resulted from the major Land 400 Phase 2 order in Australia, which includes the delivery of 211 Boxer wheeled armored vehicles.
The order intake for the Vehicle Systems division in the year under review was €1,564m, after €2,851m in the previous year. In fiscal 2021, two major orders for the modernization of the British Challenger main battle tank fleet and the upgrade of the German armed forces’ Puma infantry fighting vehicle led to a particularly high order intake.
With an extension of the existing contract with the British government to supply an additional 100 Boxer wheeled vehicles, an order volume of €256m was generated in 2022. Other major new orders were acquired in connection with the tank-swap program initiated by the German government with the NATO member states of Greece, Slovenia, the Czech Republic and Slovakia. In the area of military logistics vehicles, the German armed forces placed additional call-offs of €485m under an existing framework agreement to supply up to 4,000 trucks with swap body systems by 2027.
The division’s operating result amounted to €258m in 2022. This is growth of €84m or 48% compared to the previous year’s result of €174m. At 11.4%, the operating margin exceeded the previous year’s figure of 9.2% thanks to a better product mix.
Weapon and Ammunition: Operating result grows by 40% – new record in order intake at nearly €3bn
The Weapon and Ammunition division generated sales of €1,470m with its weapon system and ammunition activities in the year under review. Measured against the previous year, this represents an increase in sales of €238m or 19%. Two-thirds of this growth can be attributed to the South African subsidiary Rheinmetall Denel Munition (Pty) Ltd., which generated additional sales in individual customer nations. The Protection Systems business unit also played a role here with its activities in the field of military protection systems. It increased its sales primarily through deliveries of armored truck cabs.
The Weapon and Ammunition division achieved a new record order intake of €2,980m. The order volume more than doubled compared with the previous year’s figure of €1,403m (2021) with growth of €1,577m. This development clearly reflects armed forces’ increased demand for munitions in many countries in Europe and elsewhere.
Particularly worthy of note are a €848m multi-year contract to supply various types of ammunition to the Hungarian armed forces and a €192m contract for technology for an explosives plant, likewise in Hungary. Another major order worth €119m went to RWM Italia for a customer in the Pacific region. Business with the German armed forces increased to an order volume of €380m.
The operating result in the Weapon and Ammunition division rose by €88m or around 40% to around €306m in fiscal 2022 (previous year: €218m), mainly due to the higher sales volume. The operating margin improved from 17.6% in the previous year to 20.8% in the year under review due to intensified cost optimization measures and a more profitable product mix in the ammunition business.
Electronic Solutions: Sales and operating result increased – order intake at a record level
The Electronic Solutions division, which produces solutions in the field of armed forces digitalization, infantry equipment, air defence and simulation, generated sales of €1,063m in fiscal 2022. It thus exceeded the previous year’s level of €932m by 14%. The sales increase is driven among other things by a larger share in the major Hungarian Lynx infantry fighting vehicle project as well as the supply of infantry equipment for the German armed forces. Other relevant sales came from the share in the major Land 400 Phase 2 project for Australia, the expansion and modernization of existing air defence systems, and the delivery of the Skynex air defence system for international customers. The sales from the activities of the drone manufacturer EMT, which were acquired in the year under review, were also included for the first time.
Order intake for the Electronic Solutions division climbed to a record €1,649m in fiscal 2022 (previous year: €1,021m). The largest single order in the division was a major order of €219m for special procurement of combat helmets as part of the special fund for the German Bundeswehr.
At €118m, the division’s operating result was up 20% on the previous year’s figure of €99 m. The operating margin increased from 10.6% in the previous year to 11.1%.
Sensors and Actuators: Booked business considerably increased; order successes reinforce transformation
The Sensors and Actuators division, which provides solutions for industrial applications and electric mobility as well as components and control systems for reducing emissions, increased its sales by 5% or €67m to €1,382m in the year under review. It thus fell slightly short of the global growth in light vehicle production, which is estimated at around 6% (IHS Markit). This difference can be explained in part by weaker market growth in the Sensors and Actuators division’s truck market. Nearly all other product areas of the Sensors and Actuators division increased their sales compared to the previous year. In Automotive Emission Systems, sales of exhaust gas recirculation modules, secondary air systems and exhaust flaps picked up. The increase in sales achieved for mechanical and electric oil pumps underscores the trend toward the use of particularly efficient technologies. Sales of the electrical vapor pump enjoyed a particular upturn in the Korean and North American markets.
The division’s booked business in fiscal 2022 was 12% higher than a year earlier at €2,770m (previous year: €2,472m). The first series order for the supply of high-voltage contactors for use in electric vehicles was acquired in 2022. In the field of industrial technology, the division received the largest single order in the civil sector for a stationary refrigerant compressor to the tune of more than €670m, further driving the transformation away from the combustion engine.
The Sensors and Actuators division achieved an operating result of €95m in fiscal 2022, after €103m in the previous year. At 6.9%, the division’s operating margin was slightly below the previous year’s figure of 7.8% (2021), as changes in raw material costs were only passed onto the market at a delay, which resulted in a reduction in earnings.
Materials and Trade: Sales grow by 14%, operating result increases by around a third
The Materials and Trade division, which supplies plain bearings and structural components and conducts global aftermarket business, increased sales in 2022 by 14% or €92m to €743m compared with the previous year, which was still severely impacted by the coronavirus pandemic.
The Bearings and Trade business units again showed positive year-on-year sales performance. Bearings passed on cost increases in the plain bearings business and generated higher sales. The Trade business unit increased its sales both with higher sales volumes and through price increases.
Booked business in the Materials and Trade division reached €751m in the period under review, a year-on-year increase of €31m or 4%.
The division achieved an operating result of €68m in fiscal 2022, up €17m or 34% on the previous year. As a result, the division’s operating margin increased by 1.3 percentage points year-on-year to 9.1%.
Rheinmetall Group forecast for 2023: Strong sales growth with stable high margins
Based on the current market outlooks, the Rheinmetall Group expects significant growth in sales and anticipates a stable, high operating margin combined with an improved operating result in fiscal 2023.
The Rheinmetall Group’s annual sales are expected to rise to between €7.4bn and €7.6bn in fiscal 2023 (fiscal 2022: €6,410m) before M&A effects.
Based on this sales forecast and taking into account holding costs, Rheinmetall is expecting to see an improvement in the Group operating result, with a Group operating margin of around 12% for fiscal 2023 (margin fiscal year 2022: 11.8%).
16 Mar 23. L3Harris Statement on Aerojet Rocketdyne Shareholder Vote. Today Aerojet Rocketdyne (NYSE: AJRD) shareholders overwhelmingly approved all necessary proposals to complete L3Harris Technologies’ (NYSE: LHX) acquisition of the company.
“The shareholder vote represents a key milestone in the acquisition process, and integration planning is underway,” said Christopher E. Kubasik, Chair and CEO, L3Harris. “We continue to respond to Federal Trade Commission inquiries as we move toward an expeditious closing.”
About L3Harris Technologies
L3Harris Technologies is a Trusted Disruptor for the global aerospace and defense industry. With customers’ mission-critical needs always in mind, our 46,000 employees deliver end-to-end technology solutions connecting the space, air, land, sea and cyber domains. (Source: BUSINESS WIRE)
15 Mar 23. MBDA – Co-operation is our strength. MBDA held its annual press conference in Paris today, 15 March, and presented the group’s achievements in 2022 and the challenges to come.
Éric Béranger, CEO of MBDA, said: “At MBDA, co-operation is our strength: the union of countries, of cultures, of expertise and of technology. Co-operation is what allowed us to deliver our strong performance in 2022. Today more than ever, in this deeply troubled international context, we can see how it is through co-operation that we will prevail, support the reinforcement of our countries’ sovereignty, and help ensure the safety of our people.”
Co-operation in programmes and technology
MBDA contributes to European air defence security through the comprehensive solutions offered to counter the whole range of air threats, from long-range ballistic missiles to very small unmanned aircraft. Air defence systems operating the Aster missiles are deployed in France, Italy and the UK, on both ships and on land systems such as the SAMP/T, which was recently sent to Ukraine’s borders. Its next generation, SAMP/T NG, continued to advance in 2022 and will be delivered to Italy and France by 2025 and available for export in 2026. Co-operation in air defence is also built around another emblematic co-operation programme between Italy and the UK, CAMM and CAMM-ER, for which in 2022 MBDA received an order for the Italian Army and the Italian Air Force. Progress was also made on Sky Warden, our flagship solution to counter unmanned aerial systems (C-UAS), a modular scalable system designed to integrate and control multiple sensors and effectors. Sky Warden can address all threats from small aircraft to very small drones, of which we have seen growing use of recently in conflicts in Europe and elsewhere.
In the field of deep strike and heavy anti-ship weapons, 2022 saw the next phase launched of the Future Cruise/Anti-Ship Weapon (FC/ASW) between France and the United Kingdom, focusing on the co-ordinated development of the programme, and re-confirmed last week during the Franco-British summit in Paris. Future air combat also stands as a priority for MBDA, being involved in the two major programmes: Germany, France and Spain continued to advance on the Future Combat Air System (FCAS) project for which MBDA is responsible for new Remote Carrier effectors and brings its expertise on connected collaborative combat; and with the Global Combat Air Programme, backed by the UK, Italy and Japan, for which MBDA is the effects domain leader. On the innovation side, good progress was made in 2022 on laser directed energy weapons, with the recent acquisition of Cilas in France, the successful trials of Dragonfire in the UK and of the new tracking technology for high-energy laser (HEL) in Germany.
Co-operation of cultures and expertise
MBDA was founded on the strong willingness of nations to co-operate, this is our strength and is what makes us successful. It is through the interaction of different cultures, different know-how and different ways of working, while respecting national priorities, that MBDA developed itself as an integrated European company. Investment in people to drive innovation and delivery remains a core focus for MBDA, with a company record-breaking 1,570 new people joining the group in 2022, and a plan to recruit more than 2,000 new employees in 2023.
Outside our domestic countries, among the major export contracts signed in 2022 were the weapon packages for the UAE’s new Rafale aircraft, the weapon packages for Greece’s new frigates and Rafale aircraft, and the CAMM missile contract in Poland.
In total, revenues in 2022 were €4.2bn, consistent with 2021’s record level. Order intake reached a new record total of €9bn in 2022, growing MBDA’s order backlog to €22.3bn.
15 Mar 23. Red Cat Holdings Invests in Firestorm Modular UAS Company.
Red Cat Holdings, Inc. a military technology company integrating robotic hardware and software to protect and support the warfighter, has made a materially significant financial investment in Firestorm, an American company developing the first completely Modular Unmanned Aerial System (MUAS) that is 3D printed and payload agnostic.
Firestorm is building a new category of fixed-wing UAS with 30-day product iterations, a commitment to open-system architectures, and an additive manufacturing approach that allows them to scale production in an elastic manner.
“Firestorm is changing how UAV’s can be designed, manufactured, and delivered quickly, and the Firestorm system solves a lot of problems for many critical situations. Their long-range and long-duration loitering capabilities are a cost-effective approach to winning in the air. We believe that our Teal 2 drone and the Firestorm UAV could be a great combination for the warfighter,” said Red Cat CEO Jeff Thompson.
Firestorm’s founding team has deep industry expertise in additive manufacturing, aerospace, and defense and understands how to build and quickly scale dual-use technology companies.
“We are honoured to have Red Cat join us on our journey. Red Cat’s Blue UAS products, their American manufacturing facilities, and their industry knowledge have made them a great partner as we work to scale our business,” said Firestorm CEO Daniel Magy.
“We want to help Firestorm succeed, and this investment may be just the beginning. For example, our large manufacturing facility in Salt Lake City could accelerate the production of Firestorm’s products to meet increased demand,” (Source: UAS VISION)
14 Mar 23. Kopin Corporation Reports Financial Results for the Fourth Quarter and Full Year 2022.
- Full year 2022 revenues increased 3.8% compared to 2021
- January 2023 capital raise solidified balance sheet for announced restructuring efforts
Kopin Corporation (“Kopin” or “the Company”) (Nasdaq: KOPN), a leading provider of high-resolution micro-displays and sub-systems for defense, enterprise and consumer augmented reality, virtual reality and mixed reality systems, today reported financial results for the fourth quarter and full year ended December 31, 2022.
“2022 was an instrumental year in Kopin’s evolution to becoming a leading provider of specialized solutions combining advanced microdisplay and optics technologies,” said Michael Murray, Kopin’s CEO. “While we continued to develop leading edge technologies for the various markets we serve over the last few years, we believed that a fundamental shift was required for our business to prosper over the long term. Since I became CEO in September of 2022, we have taken several steps towards operational improvements. My immediate focus is on yield improvements, on time and in full deliveries as well as cost controls, leading to improved margins and cash flow.”
Murray continued, “As we move into 2023, I see numerous long-term opportunities to drive revenue growth in our defense and industrial markets but we must establish operational excellence for this to be profitable growth. In addition to our operational improvements, we are focusing our business development efforts on offering our higher value added integrated optical display assemblies, which are critical to increasing the applications for AR/VR/MR, among other opportunities.”
“Technology has always been at the heart of Kopin’s success and we will continue executing on our vision to provide our global customers with brilliance in innovation, design and performance paired with a renewed focus on operational excellence,” concluded Murray.
Fourth Quarter Financial Results
Total revenues for the fourth quarter ended December 31, 2022 were $12.2m, compared to $13.2m for the fourth quarter ended December 25, 2021, an 8% decrease. Year-over-year product revenues were essentially flat with defense product revenues increasing by $1.2m or 19.6% year over year while industrial product revenues decreased approximately $1.1m or 46%, year over year. Fourth quarter 2022 funded research and development declined by $1.0m or 24% as certain development programs moved into low rate initial production.
Cost of Product Revenues for the fourth quarter of 2022 was $8.9m, or 103% of net product revenues, compared with $7.5m, or 85% of net product revenues, for the fourth quarter of 2021. The higher cost of product revenues as a percentage of net product revenues was partially due to an increase in material usage related to the quality issues.
Research and Development (R&D) expenses for the fourth quarter of 2022 were $4.7m compared to $5.2m for the fourth quarter of 2021, an 11% decrease year over year. The decrease in 2022 fourth quarter R&D expense as compared to the prior year was due to lower funded R&D expenses partially offset by higher internal R&D expenses. With the previously announced spin-off of certain organic light emitting diode (OLED) activities to Lightning Silicon, the Company expects internal R&D activities to decline in 2023.
Selling, General and Administration (SG&A) expenses were $4.9 m for the fourth quarter of 2022, compared to $4.1m for the fourth quarter of 2021. The increase was primarily due to an increase in compensation and professional fees, which were partially offset by lower stock-based compensation.
Net Loss Attributable to Kopin Corporation for the fourth quarter of 2022 was $6.2m, or $0.07 per share, compared with Net Loss Attributable to Kopin Corporation of $3.3m, or $0.04 per share, for the fourth quarter of 2021.
Full Year Financial Results
Total revenues for the year ended December 31, 2022 were $47.4m, compared to $45.7m for the year ended December 25, 2021, a 3.8% year-over-year increase.
Cost of Product Revenues for 2022 were $32.6m, or 100% of net product revenues, compared with $25.1m, or 84% of net product revenues in the prior year. Cost of product revenues increased as a percentage of revenues in 2022 as compared to 2021 primarily due to excess material costs associated with quality issues, increased raw material prices and inefficiencies caused by supply chain disruptions.
R&D expenses for 2022 were $18.7m compared to $16.3m for 2021, a 15% increase year over year. The increase in R&D expense as compared to the prior year was seen in both funded and internal R&D. Funded R&D expenses were $10.3m for 2022 as compared to $10.0m for 2021, a 3% increase. Internal R&D expenses were $8.4m for 2022 as compared to $6.3m for 2021, a 33% increase. Internal R&D expense for 2022 increased as compared to the prior year primarily due to increase OLED development.
Selling, General and Administration (SG&A) expenses were $18.0m for year 2022, compared to $18.1m for the year 2021. SG&A for 2022 had increases as compared to 2021 in professional and compensation costs which were offset by lower non-cash stock-based compensation.
Other income for fiscal years 2022 and 2021 were income of $2.6 m and $436,000, respectively. In 2022 Kopin recorded a write up of an investment of $4.7m and a write-down of $2m in another investment.
Net Loss Attributable to Kopin Corporation for the year 2022 was $19.3m, or $0.21 per share, compared with Net Loss Attributable to Kopin Corporation of $13.4m, or $0.15 per share, for the year 2021.
Net Cash Used in Operating Activities for 2022 was approximately $17.7m. Kopin’s cash and equivalents and marketable securities were approximately $12.6m at December 31, 2022 as compared to $29.3m at December 25, 2021.
During 2022, the Company sold 2,330,436 shares of common stock through our existing At-The-Market program (ATM), which was entered into in March 2021, for gross proceeds of $2.9m before deducting broker expenses of less than $100,000.
Subsequent to year end the Company completed a capital raise wherein 17m shares of Kopin common stock were sold and prefunded warrants for another 6m shares were issued. The net proceeds were approximately $21.5m.
All amounts above are estimates and readers should refer to the Form 10-K for the year ended December 31, 2022, for final disposition as well as important risk factors. (Source: BUSINESS WIRE)
14 Mar 23. Luna Innovations Reports Strong Fourth-Quarter and Full-Year 2022 Results.
Provides 2023 Guidance
Q4 Financial Highlights
- Revenues of $31.7m, up 31% year over year
o Revenues in constant currency of $32.5m; up 34% year over year
- Gross margin of 61%, compared to 58% for the prior year
- Net income of $0.9m, compared to net income of $1.6m for the prior year
- Adjusted EBITDA of $4.7m, compared to $3.1m for the prior year
- Adjusted EPS of $0.08, compared to $0.08 for the prior year
Full-Year Financial Highlights
- Revenues of $109.5m, up 25% year over year
o Revenues in constant currency of $111.9m; up 28% year over year
- Gross margin of 61%, compared to 59% for the prior year
- Net income of $9.3m, compared to net income of $1.4m for the prior year
- Adjusted EBITDA of $12.1 m, compared to $7.6m for the prior year
- Adjusted EPS of $0.21, compared to $0.17 for the prior year
Luna Innovations Incorporated (NASDAQ: LUNA), a global leader in advanced optical technology, today announced its financial results for the three months and full fiscal year ended December 31, 2022.
“2022 was a transformational year for Luna representing the culmination of execution on the five-year strategic plan we outlined in 2017, thereby creating a pure-play fiber optics company,” said Scott Graeff, President and Chief Executive Officer of Luna. “We’ve moved into FY23 with keen focus and high expectations for organizational optimization, large customer wins, and market expansion.
“With the completed divestiture of Luna Labs, our acquisition of Lios Sensing, and the integration of OptaSense, we created a solid base that reflects our fiber-focused vision for our business going forward. We believe these accomplishments will help us deliver strong financial results in FY23 and will enable our success far into the future.
“We are creating a leading global organization with world-class capabilities,” Graeff continued. “With the right people in the right places in a right-sized organization, we are preparing for significant scalability and targeting meaningful growth. We are looking forward to a strong year in an expanding market with incredible potential.”
Fourth-Quarter Fiscal 2022 Financial Summary
Highlights of the financial results for the three months ended December 31, 2022 are:
A reconciliation of Adjusted EPS and Adjusted EBITDA to the nearest comparable figures under generally accepted accounting principles (“GAAP”) can be found in the schedules included in this release.
Revenues for the three months ended December 31, 2022 increased 31% compared to the prior year period; 34% in constant currency.
Gross margin for the three months ended December 31, 2022 was 61%, compared to 58% for the three months ended December 31, 2021, driven primarily by product mix. Operating income increased to $1.5m for the three months ended December 31, 2022, compared to $1.0m for the three months ended December 31, 2021.
Net income was $0.9m, or $0.02 per fully diluted share, for the three months ended December 31, 2022, compared to $1.6 m, or $0.05 per fully diluted share, for the three months ended December 31, 2021. Adjusted EPS was $0.08 for the three months ended December 31, 2022 compared to $0.08 for the three months ended December 31, 2021.
Adjusted EBITDA was $4.7m for the three months ended December 31, 2022, compared to $3.1m for the three months ended December 31, 2021.
Full-Year Fiscal 2022 Financial Summary
Revenues for the year ended December 31, 2022 increased 25% compared to the prior-year period; 28% on a constant currency basis.
Gross margin of 61% for the year ended December 31, 2022 was up compared to 59% for the year ended December 31, 2021. Operating loss of $1.9m for the year ended December 31, 2022, decreased compared to operating loss of $2.6m for the year ended December 31, 2021.
Net income was $9.3m, or $0.28 per fully diluted share, for the year ended December 31, 2022, compared to a net income of $1.4m, or $0.04 per fully diluted share, for the year ended December 31, 2021. Adjusted EPS was $0.21 for the year ended December 31, 2022, compared to $0.17 for the year ended December 31, 2021.
Adjusted EBITDA was $12.1m for the year ended December 31, 2022, compared to $7.6m for the year ended December 31, 2021.
Q4 Business Highlights
- Closed multiple, new, large and recurring OEM accounts
- Won multiple, large contracts for our fiber sensing solutions in the infrastructure and energy industries
- Achieved strong, 47% year-over-year growth for the Company’s Terahertz products
- Record quarter in the Company’s Communications test vertical, delivering 59% year-over-year revenue growth
- Delivered a new generation laser tester for Silicon Photonics applications
2023 Full-Year Outlook
For fiscal year and Q1 2023, Luna expects:
- Total revenues in the range of $125m to $130m for full year 2023
- Adjusted EBITDA in the range of $14m to $18m for full year 2023
- Total revenues in the range of $23m to $25m for Q1 2023
Luna is not providing an outlook for net income, which is the most directly comparable GAAP measure to Adjusted EBITDA, because changes in the items that Luna excludes from net income to calculate Adjusted EBITDA, such as share-based compensation, tax expense, and significant non-recurring charges, among other things, can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of Luna’s routine operating activities.
The outlook above does not include any future acquisitions, divestitures, (Source: BUSINESS WIRE)
13 Mar 23. BigBear.ai Announces 21% Year-Over-Year Growth in Fourth Quarter 2022.
- Total full year revenue achieved guidance and grew 6% year-over-year to $155.0m; Analytics full year revenue grew 19% year-over-year
- Full year gross margin grew to 27.7%, an increase of 430 basis points from 23.4% for the year ended December 31, 2021. Analytics segment adjusted gross margin of 44% for the year ended December 31, 2022
- Net loss of $121.7m for the year ended December 31, 2022, compared to $123.6m for the year ended December 31, 2021, reflecting $53.5m of non-cash goodwill impairment charges, $10.9m of stock-based compensation expense, $4.2m of restructuring charges, and $2.6m of transaction expenses. Net loss of $46.0m for the second half of the year ended December 31, 2022.
- Non-GAAP Adjusted EBITDA* of $(17.1)m for the year ended December 31, 2022; Achieved guidance with Adjusted EBITDA of $(6.5)m for the second half of the year ended December 31, 2022
- Closed a $25.0m private placement transaction in January 2023, improving liquidity to execute on 2023 strategy and expanding public float
- 2023 financial outlook provided of $155m – $170m in Revenue
BigBear.ai Holdings, Inc. (NYSE: BBAI) (“BigBear.ai” or the “Company”), a leader in AI-powered decision intelligence solutions, today announced financial results for the fourth quarter and full year ended December 31, 2022.
BigBear.ai CEO Mandy Long said, “Since I joined BigBear.ai in October 2022, we completed a full portfolio assessment, reduced our cost structure, recalibrated the business, and are focused on executing against our strategic plan. In the fourth quarter, we continued our mission of delivering clarity for the world’s most complex decisions with BigBear.ai’s advanced AI capabilities. This core strength, coupled with the actions we took to strengthen our financial position, enabled us to deliver on our 2022 revenue and Adjusted EBITDA targets, despite continued macroeconomic uncertainty. We are building momentum and positioning ourselves as a strong competitor for larger prime contracts.”
Long continued, “With our AI-powered decision intelligence solutions and more efficient operating structure, we are positioned to grow our footprint in key market categories – including global supply chains & logistics, autonomous systems, and cyber – and capitalize on our differentiators and the growing momentum in the field of artificial intelligence. We are focused on driving meaningful, sustainable long-term growth.”
Fourth Quarter 2022 Financial Highlights
- Revenue increased by 21% to $40.4m, compared to $33.5m for the fourth quarter of 2021, primarily driven by increased volume from key program wins in 2022, including the Global Force Information Management (GFIM) Phase 2 award from the U.S. Army
- Analytics revenue of $23.1m increased by $6.5m, or 39%, as compared to the same period in 2021, primarily driven by certain programs focused on supply chain optimization
- Gross margin of 29%, compared to 11% for the fourth quarter of 2021
- Segment adjusted gross margin of 47% for the Analytics segment, compared to 34% for the fourth quarter of 2021, driven by follow-on production awards won as a result of investments in lower margin prototype contracts made in the fourth quarter of 2021
- Net loss of $29.9m, primarily a result of a non-cash goodwill impairment charge of $18.3m in our Analytics segment, compared to a net loss of $114.8m in the same period of 2021, primarily driven by $60.5 m of stock-based compensation expense that was recognized in connection with our merger transaction that occurred in the fourth quarter of 2021
- Non-GAAP Adjusted EBITDA* of $(2.5)m, including the impact of restructuring and cost savings actions completed in September 2022. This reflects continued improvement against non-GAAP Adjusted EBITDA of $(7.7)m and $(3.9)m in the second and third quarters of 2022, respectively
- Net cash used in operating activities was $(10.5)m, compared to $(6.4)m in the third quarter of 2022, driven primarily by the timing of our semi-annual $6.0m interest payment in December and start-up costs incurred in advance of a contract that was awarded in the first quarter of 2023
- Ending backlog of $222m
BigBear.ai CFO Julie Peffer said, “In the fourth quarter, we continued to realize benefits from our cost savings initiatives, and our revenue growth was driven by our higher margin Analytics segment which had a positive impact on profitability. Looking ahead, we anticipate substantially lower cash burn, and we believe our improved liquidity position, bolstered by a $25m private placement that we closed in the first quarter of 2023, enables us to target growth investments judiciously. We remain committed to cost discipline and operational efficiency, and we are well positioned to deliver sustainable revenue growth in 2023.”
The following information and other sections of this release contain forward-looking statements, which are based on the Company’s current expectations. Actual results may differ materially from those projected. It is the Company’s practice not to incorporate adjustments into its financial outlook for proposed acquisitions, divestitures, changes in law, or new accounting standards until such items have been consummated, enacted, or adopted. For additional factors that may impact the Company’s actual results, refer to the “Forward-Looking Statements” section in this release.
For the year-ended December 31, 2023, the Company projects:
- Revenue between $155m and $170m
- Single Digit Negative Adjusted EBITDA*, in millions
In connection with conducting an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2022, management identified a material weakness in internal controls over financial reporting related to the combination of inadequate segregation of duties and ineffective IT General Controls. As a result, the Company expects to report a material weakness in its Annual Report on Form 10-K for the year ended December 31, 2022. The Company believes that this will not result in any changes to the financial results presented in this release or otherwise have a significant impact on our consolidated financial statements. The Company expects the remediation work to be completed this year. (Source: BUSINESS WIRE)
09 Mar 23. DroneShield “has now raised over AUD40m in investment funds.” DroneShield Ltd has announced the successful completion of its Share Purchase Plan (SPP), which follows the AUD10.9m Placement, completed on 6 February. “The SPP generated significant support from DroneShield’s existing shareholders and substantially exceeded the USD3m the Company targeted via the SPP,” said a company press release. “DroneShield received SPP applications of USD29.4 m at an issue price of USD0.30 per Share.
“Given the strong support shown by shareholders, the Board exercised its discretion under terms of the SPP and has determined not to scale back applications, in recognition of the long-term support of its investors and to maximise growth opportunities. The funds will be used to accelerate DroneShield’s growth through a faster scale-up of inventory for near-term sales, growth of key parts of the team, and general working capital.
DroneShield’s total funds raised under the Placement and SPP are AUD40.3m (before costs). Following completion, the Company has a robust balance sheet to accelerate growth with cash of approximately USD50 m and no debt.
Oleg Vornik, DroneShield’s CEO, said: “We are pleased to have received outstanding shareholder support for both the Placement and SPP. The funds will allow us to take advantage of the highly favourable environment for defence and specifically customer demand for counterdrone solutions as witnessed by the Ukraine conflict, as we target 2023 to be a transformative year for DroneShield.”
For more information: https://www.prnewswire.com/news-releases/droneshield-completes-40-m-capital-raise-with-substantial-investor-support-301764249.html
www.droneshield.com (Source: www.unmannedairspace.info)
10 Mar 23. Gilat strengthens presence in defence market with DataPath acquisition. DataPath offers satellite communications systems, network management software, and cybersecurity services.
Israel’s Gilat Satellite Networks has agreed to purchased DataPath, a communications firm serving US military and government customers.
The acquisition will expand Gilat’s position in the defence market. The company expects an approximately $50m increase in annual revenue for its defence sector, following the completion of the deal.
Gilat’s board of directors and DataPath’s board of directors and stockholders have approved the acquisition.
Expected to be complete in the third quarter of 2023, the deal is subject to the receipt of some regulatory approvals, clearance from the Committee on Foreign Investment in the United States (CFIUS), and other customary closing conditions.
Gilat CEO Adi Sfadia said: “DataPath is a leading US integrator, providing mission critical solutions and services, and is a large provider to the US Department of Defense (DoD) of transportable hubs, mini-towable hubs, and a portfolio of military-grade portable antenna terminals.
“The acquisition is a major milestone in Gilat’s growth strategy to expand its business into the US DoD and government sectors, as well as into other international governments and defence markets. We see great synergy between the companies and are looking forward to working with DataPath’s leadership in support of its customers.”
Financial terms of the transaction have not been disclosed.
With over 25 years of experience, DataPath has a strong foothold in the supply and maintenance of portable ground stations and other SatCom systems, as well as associated support services.
It has a huge amount of expertise in systems and mechanical engineering, and software development.
DataPath CEO and executive chairman David McDonald said: “We are proud of our DataPath team to get the company positioned to join Gilat and expect that, together with Gilat’s strong position in the SATCOM market and its vast international reach, DataPath will be well positioned to continue its profitable growth and its continual commitment for integrated solutions built with best of breed components.”
Gilat received legal counsel from Naschitz Brandes Amir & Co and Foley and Lardner, and financial advice from Needham & Company and Quilty Analytics.
DataPath’s legal counsel are DLA Piper and Greenberg Traurig, and RCBG is acting as its exclusive financial advisor. (Source: army-technology.com)
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.