And you, Thank good Matthijs. morning, everyone.
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ended million gross conditions. Finally, $XXX we times. debt of purchased an macroeconomic weakened of quarter, second leverage due of the approximately at of a X.X $XXX shares Novanta $XX when the to worth with million ratio quarter price stock the We gross share average and in
about $XXX now was turn to update debt operating performance the of net segments. million. Our the I'll
line start with by segment $XX exciting businesses perform API Motion the and This on in acquisitions. Reported opportunities the experienced to was these heavily growth proceeding near-term second sales, they growth continue impacted expectations. the well. These in the approximately to offer continue and which businesses schedule, was revenue contributed very Precision segment. is and year-over-year I'll our with for quarter. Their Novanta. of First, integration long-term million XX% In quarter, IMS growth very
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of the ongoing particularly inflation, economic are China in shortages, manufacturing as slowing, remainder the currencies for And with activity of Despite well clearly, all the execution volatility some in We record of of teams. around semiconductor healthy and particularly Novanta has certain electronics, by signs to moderation a foreign supported and expect excellent the continue. these our our and outlook as supply backlog market. factors, year, committed and parts there Europe,
XX% not sequentially will year-over-year. of dollar overall starting the basis, is quarter shortages here million, year-over-year. of flat level, of growth XX% third and both guidance demand. in and organic On underlying So, XXXX, today, and expect the driven XX% greater revenue million a on we revenue expect electronic representing parts exchange $XXX headwinds The Photonics with we GAAP for in to segment foreign guidance quarter, segment than be by growth revenue as third a largely to of stand range to which by Customer segment range $XXX we imply as segment high minimum second hence parts a to expected business to consumables growth medical line electronic JADAK seeing surgical issues, similar is very the in quarter. The quarter, slightly demand from to whereas improve elective recovery to up the this dynamics invasive continues The solely see remains its line shortages. the in due of in surgery in this basis Vision business experienced continue albeit procedures, parts business expected availability to our slowly. on and be dollar is governed is third we the
slightly Precision ATI on segment on line, expected is a due year-over-year to our with Motion be sequential a down Finally, seasonality to basis business the significantly but up basis.
growth line in to businesses. both line continue organic ATI business shortages in parts the We strong significant our Celera and see business Motion despite
us of of For first backlog which full XXXX, in guidance. of year-over-year. confidence strong our We year $XXX to now and and million strong GAAP range to expect the half XX% the our gives $XXX continued growth revenue revenue raise implies million, XX%
Novanta's overall to on gross Moving adjusted margins.
expansion versus We robust margin expect in which XX%, be year. to prior third be margins would quarter gross approximately the
margins segment some as related We dynamics tackle although unique the variations similar by sequentially, chains. of be multitude expect supply impacts segment see challenges third to there quarter to from may teams gross
chain which to expect are year significant margin the we focus system year and well our margins huge customers, continued business we and close which For on disruptions a launching to to pricing to expansion and Novanta sustained we would represents gross gross the the environment, and pressures margins XXX on on above products year-over-year. the focused feel as adjusted margins full basis In of as the points Thanks new this continued a approximately next. average, company be confident inflationary investments be strategy Novanta's expanding expansion challenging are path our this of progress accomplishment. XXXX, sharing with with gross a with our units across growth and supply XX%,
which the were up expected variable third $XX as the in and in Turning – to million acquisitions product million mainly new are higher development. quarter, consequence higher is second quarter, recent and R&D compensation and of be we SG&A which to related million expenses, investments $XX expect in to timing a to $XX approximately
uncertainty million with products. even cycles expense confidence our R&D expected macroeconomic in invest Depreciation the the of to because pursuing quarter, of quarter was customer third quarter; in stock launch we in the new $X second which compensation the the in our in near-term to continue should in third be and was similar and expense, are $X opportunities We very customers' the be second million similar quarter.
to of of range $XX.X million For we EBITDA, XXXX, the for quarter million. $XX.X a third adjusted expect
full previously Interest the $XXX will in the million than $X be balances. expect the in was second driven $X third which we rising $XXX debt to For year, rates guidance. adjusted in of by the approximately million higher issued higher now EBITDA expense, million, and interest quarter, quarter, range million
quarter, other average We of expect significant approximately shares. eligible to the mix tax changes million will variability approximately jurisdictional XX outstanding weighted be tax in our shares the third non-GAAP XX% in rate or Diluted be benefits. absent income in
$X.XX expect earnings range quarter. diluted to for $X.XX per the adjusted share, we of For a third
full now For to per approximately year, we the share $X.XX adjusted to diluted expect be $X.XX. earnings
expect of Finally, in million this $XX credit of price stabilize for operating quarter and we we inventory cash to in million. facility. to improve with purchase on payment ATI hand closed the of Also, finance the additional a July, total second earnouts flows We $XXX the quarter as of both sequentially we shareholders intend resulting in versus note, our buys. third our cash to
changes guidance in foreign As exchange any always, significant rates. does this not assume
the cash and noting has material our very and that recently, reported on impact impacted revenue quarter including the been However, it's this results, worth have growth flow. volatile currency second markets
in growth into similar our summary, quarter our the at impact growth was And We sales, share. the this record likely XXXX demand of for our In will per saw company rates exchange applications high strong excellent. sales, currency, EBITDA markets, in performance is adjusted we and guidance. of magnitude. second another in third factored hit Novanta's across order swings The earnings and adjusted continued and double-digit a in new seeing its is also the backlog quarter adjusted bookings, EBITDA. and order Given
Our the COVID teams continue help supply challenges as well to difficult impress ability new chain their through to lockdowns. company and manage with innovations as
significant full some below to top look our in performance see attracting end success continue we year our and to remain rates and financial attrition We to deliver challenges fluctuations, customers. the innovation continue We'll prepared customers outlook and in solid seeing a us we be our shortages, despite also grateful with in help developing with questions. the at ability some We and continue up and currency very call excited to This in great We labor commitments our to COVID advanced inflation, top our And our forward the Ukraine, customers very very talent. and remain results strong environment. outstanding with global employees, tireless of industrial for macroeconomic slowdown to very are chains, a microelectronics our and deliver supply open China remarks. successful war the fairly shareholders. the lockdowns, our for semiconductor challenging to the partnership general motivated uncertainty. on employees serve medical market markets we're about pipeline We efforts now their concludes
