Payton Planar Magnetics (PAY) Q2 2024 earnings summary

Executive summary

• Sales revenues for H1 2024 reached USD 28.52 million, up 15% year-over-year, driven by a temporary ramp-up of existing projects.

• Net profit for H1 2024 was USD 7.59 million, compared to USD 6.3 million in H1 2023.

• Order backlog as of June 30, 2024, stood at USD 30.47 million, with most expected to be supplied within four quarters.

• Dividend of USD 10.07 million paid in March 2024.

Financial highlights

• Gross profit for H1 2024 was USD 12.46 million (44% margin), up from USD 10.78 million (44%) in H1 2023.

• Operating income rose to USD 7.96 million from USD 6.84 million year-over-year.

• Net finance income increased to USD 1.04 million, reflecting higher deposit balances and interest rates.

• Cash and equivalents, short-term deposits, and marketable securities totaled USD 51.18 million at June 30, 2024.

• Cash flows from operating activities were USD 5.94 million, down from USD 8.08 million in H1 2023.

Outlook and guidance

• Management expects most of the USD 30.47 million order backlog to be delivered by June 2025.

• Ongoing global slowdown, high interest rates, and excess inventory are expected to intensify in H2 2024, impacting demand and delivery schedules.