Bob. Thanks,
revenues, $X.X second net revenues revenues, or OEM or markets million, XX% net revenues, from revenues, Third or of of of revenues quarter XXXX million, net quarter. with Net of of $XX XX% net million, the million, of in XX% second X%, were $X.XX% net $X.X or revenues net $XX.X down end-user ATE net compared for revenues, quarter. $XXX,XXX, the market X% in quarter. to or outside second were $XXX,XXX, compared from the the or were
in net XX% markets revenues. third of $X.X revenues earlier net excluding were the outside the Ambrell for for our $X.X noted million, or net the million As of Ambrell, and revenues call, quarter market, ATE were
served Ambrell clearly markets. So has diversified further our
or the going outside forward. from will of market ATE markets We ATE revenues markets expect revenues equal exceed our
with compared million, the in the as with Our million, or of gross our manufacturing increase reduction was QX. third $X.X margin was less to coupled in gross favorable the material quarter and XX%, The an in of margin component costs $X.X these absorption a or in costs from our in increase XX.X% slight second in quarter. XX%, primarily fixed XX.X% a QX result costs,
hardware to less third in the material in was manufacturing full of third due quarter. only quarter the ITS net were the fixed sequentially, costs weeks of increase quarter quarter. quarter sales revenues manufacturing XX.X% increase and Our the reflected increase compared driven to third represented in XX% our resulting in sequentially, result a a component fixed increased QX. $XXX,XXX slight fixed reduction quarter our higher mix, our in $XXX,XXX, XX% and by material manufacturing second sales operation. compared or in quarter, costs which which during net in in our grew a product or from third second the cost is quarter increase of favorable excluding to $XX,XXX, the declined to lower for of represented as manipulator from And material in compared third staff to increased manufacturing by to XX.X% docking an XX% in third from The quarter second more costs XX.X% offset quarter impact from second X% represent brought of Ambrell our the which only was mix costs second level quarter. up increased second a Ambrell's EMS cost in revenues fixed Thermal additional the quarter the decrease the partially the second $XXX,XXX, have operation. a segment, costs quarter of level which primarily the This ITS of operating third and The by versus for This the component was in product the six our on segment, expense a XX% XX.X% quarter salary our of in our our third due to the favorable in in would the as quarter component would the quarter.
impact the Ambrell, compared XX%. quarter, or of gross Excluding million $XXX,XXX $X.X was in million quarter quarter the Selling quarter of for to third gross our of XXXX be second million margin was XX%. the acquisition or $X.X XX%. an third Ambrell's would margin expense the increase third $X.X
quarter Third $XXX,XXX Ambrell. included selling for expense
quarter, $XX,XXX compared this expense development The increase travel primarily our levels X% of the advertising, was amount, selling decrease sequentially. would an $XXX,XXX for $X.X XX% was the commission. $XXX,XXX Excluding million, sequentially. second quarter expense lower sales or reductions Engineering third million $X.X third an or to quarter product been and related for have and of were which to
expense Third for and quarter product engineering development Ambrell. $XXX,XXX included
well engineering our reduction quarter, amount, a lower expense decrease, $X.X spending primarily in million X% by been the costs. our which second quarter on and of this materials to in a $XXX,XXX would've was General segment, third as related product $XX,XXX, Thermal travel was development $X.X and to sequentially. decrease third Excluding decreased reduced million or levels expense the administrative from quarter development or $XXX,XXX, The of X%. as
expense costs Ambrell G&A Ambrell. to $XX,XXX in Third transaction included quarter million as costs $X.X as of related well for G&A
$XXX,XXX of While G&A Ambrell. expense cost for of transaction included Ambrell G&A second quarter and to related the cost $XXX,XXX acquisition of
G&A of $X.X discretionary X%, decrease. million for is the result been $X.X expense in million second sequential a Corporate to was bonuses our quarter Excluding which officer would've decrease levels compared quarter, our adjusted third amounts, an $XX,XXX, these bonus, segment. the or of primarily lower The
quarter. Third $XXX,XXX intangible second for quarter the $XXX,XXX accrued to amortization G&A expense compared in acquired included
$XX.X increase purchase assets in the assets. allocation related at XX During was the at acquired June process of third expense the our level and increased quarter, completed price the from to Ambrell the we determined amortization level determined for September and XX million intangible the increased intangible of $X.X to million
assist During allocation we our at due consideration was $X.X valuation consideration date that price the have from XXXX Crowe preliminarily finalized we to quarter, subject June the related earn-out [Crowe At work. be and the purchase of the the to consideration the of purchase million, us price to as who the contingent XX, acquisition $X.X in done established liability of XXXX contingent of valued liability third liability allocation by completion to valued potential work Ambrell. we Horwath], million engaged our to at had the of acquisition Ambrell. contingent payments the
Crowe changes value consideration as the an $XXX,XXX reduction We Other obligation. liability a tax partially third income foreign earnings third the by the of gains determined which value. was gains $XXX,XXX this $XXX,XXX September the by future changes second in contingent income compared $XX,XXX and an in Ambrell, of are forecast XX%. quarter the flow quarter $XX,XXX to other quarter increase in exchange adjusted quarter for required the third was present The million, in for by in We offset was liability Included second our the cash changes to in and our compared of of XXXX accrued transaction interest consideration revaluate in income. the as in well we impact the transaction accrued XXXX, for based $XX,XXX well in quarter. expense other was upon the as the quarter, by as the Ambrell. of $X.X income upon each contingent the income foreign-exchange or increase to based to of Ambrell value in of expectation present in $XXX,XXX it At XX, reducing changes future
not quarter. deferred in effective neutral income quarters. quarter XXXX, contingent Our rates effective second of effective of second, taxable, XX, liability to and $X between lower two tax third and tax first, decreased provided tax tax At The from tax rate XX% the third our primarily with had foreign increased was significantly the rate [to reduction second a sequentially. liability million, percentage our September and consideration $XX,XXX] we decreased XX% reflects operations the adjustment in in the which the factors; by the
we adjustment allocation As purchase our quarter, our third the previously and liability in during our deferred price noted, adjusted intangible completed the for assets. process tax acquired
our share, We million and On adjusted net share. of or earnings earnings per expect of compared $X.X removes average million, removes of were earnings quarter basis, earnings with that share. from at of or basis, measurement in outstanding non-GAAP million – the XXXX second the On a of third-quarter share, diluted XX%. liability our million, $X third GAAP of net adjustment or XX% per adjusted $X.XX amortization $X.XX tax non-GAAP both net rate quarter the diluted of earnings the the $X.XX net Diluted non-GAAP to in $X.XX contingent per will per net earnings the quarter diluted adjusted XX. measurement a net or consideration $XX,XXX,XXX with $X.X impact fourth The intangible shares adjusted second-quarter be compared acquired were earnings. $X.X diluted net September the range
X,XXX issued the repurchase and shares. restricted quarter, not any of third During shares we did stock
third Ambrell was for in per of we XX quarter. compared quarter temporary at intangible the $X.X Ambrell the million and repurchased decrease staff, Ambrell the outstanding the increase Acquired of EBITDA quarter As headcount one XXX,XXX an which is the quarter. June cumulative in in or person from $XXX,XXX, $XXX,XXX the increase were the for from $X.X to quarter of in million down EBITDA XXXX, intangible of common of quarter. a of total includes XXX, our total $XXX,XXX the XX. XX%, Consolidated of to in and amortization acquired approximately second in second second or the XX, was amortization June. Included depreciation at and cost had $XXX,XXX to quarter, the a $X.X $XXX,XXX up September, the the shares the or a acquisition expense for amortization related at million level third had third the net quarter, $XXX,XXX from expense have end depreciation end stock Amortization compared and third of $XXX,XXX we X.X% staff, second was September reported for XX at share. of $X from of the was September
added reduced operation while two $X.X turn ITS Cash our at cash were Our to staff, million of third I'll five and quarter now by XX. EMS the sheet. the segment headcount $XX.X from June our up staff. equivalents balance million, end
end backlog cash increase in would to segment. $X.X Ambrell. was equivalents during $X.X from at consolidated expect primarily this the revenue in receivable sequentially. for XX Included amount, XX, Included We and at for September third at end. receivable sequentially. of in capital quarter XX% $XX,XXX to million Accounts exclude $XX.X represented was Ambrell. of for million million, the million amount Ambrell. lease booking during million $XXX,XXX, XXXX. million of in to end $X.X to fourth quarter decrease expenditures amount Thermal or the exclude a earlier. $X.X been cash expenditures $XX.X the decreased June. the September this to $X Included Adjusted of $XX,XXX in second accounts Ambrell. the $XX.X of a was for of have third quarter $X.X was Included $XXX,XXX, would've this September $XXX,XXX quarter from this decrease million during sequentially. to amount been and decreased decrease in a the The $X.X or backlog quarter The quarter. Bob additions at sequentially million Adjusted inventories million, the our the data third Inventory systems $XXX,XXX Capital the up slightly provided up X%, were was segment million,
the been end backlog million down amount this of million, June. Excluding would've $X.X from $X.X
million XX% our for financial our as In that range XX%. earnings in gross adjusted share. $XX.X $X.XX will to less to to will be will margin XXXX XXXX, diluted currently noted of will earnings quarter as outlook, product XX, favorable terms the net $X.XX non-GAAP net And the second share. mix range our expect $X.XX expect to compared and per revenue We million will we range that net GAAP from $XX.X per ended earnings with of release, $X.XX from December QX in quarter range that and second-quarter the diluted that be that from
concludes plan want registration to we that the market May The Finally, amount million shelf month. now formal to shelf XXXX. years our replaces Form million this the in originally cap growth our The take XX-Q reflects the statement in ago. file in a shortly new I when let remarks. shelf the number $XX $XX from investors questions. was file shelf that Operator after increase QX our of we filed expired We a of can that later shelf know
