Payton Planar Magnetics (PAY) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 reached USD 11,157 thousand, up slightly from USD 11,064 thousand year-over-year.

• Sales revenues for the nine-month period were USD 41,215 thousand, a 4% increase from USD 39,759 thousand in the same period last year.

• Q3 2024 sales revenues were USD 12,695 thousand, down from USD 15,018 thousand in Q3 2023, mainly due to project slowdowns and delivery pushouts.

Financial highlights

• Gross profit for the nine months was USD 17,863 thousand (43% margin), nearly flat year-over-year.

• Operating income for the period was USD 11,434 thousand, down from USD 12,244 thousand in 2023.

• Net finance income increased to USD 1,783 thousand from USD 1,037 thousand, driven by higher interest and exchange rate differences.

• Cash and equivalents, short-term deposits, and marketable securities totaled USD 57,061 thousand as of September 30, 2024.

• Dividend of USD 10,072 thousand was paid in March 2024.

Outlook and guidance

• Order backlog as of September 30, 2024, was USD 23,517 thousand, down from USD 30,765 thousand at year-end 2023.

• Management expects most of the backlog to be supplied within four quarters, but anticipates continued global slowdown, excess inventory, and high interest rates to impact demand.