you, Thank and Matthijs, everyone. good morning,
compared quarter gross to adjusted margin fourth of XXXX. or gross profit million was adjusted Our gross $XX.X fourth a XX% quarter or non-GAAP million in $XX.X the margin XX% adjusted
non-GAAP adjusted was profit to gross in $XXX a or or margin adjusted margin compared the full XXXX. million year, XX% $XXX XX.X% million For gross
year-over-year up the For quarter, sequentially. gross were margins adjusted but down
dynamics the that full approximately gross fourth the this there that two quarter, basis year, XX In For performance strong, margin expansion missed caused were It's points the year-over-year. adjusted to margins while expectations. was occur. fair gross expanded this our say to
Photonics first gross by surgery expected Motion largely line, margins was than evasive which revenue lower more business Precision our Vision than minimum our The has our driven increased in segment segments. and
December our was The that our Photonics in of second outbreak in dynamic deliveries interrupted take supplier January, our China. and in as Precision it of to as in products for receipt our COVID uptick electronic not a was broadly but outbreak parts our shipments. factory by revenue for shuttering us ability This and margin impacted customers' anticipated regional of only Motion segments also our resulted well
the in the COVID side, to term quarter head expansion therefore, fourth situation margins healthy for gross the the the trajectory the given into On be disruptions. and XXXX. China our long Overall, bright gross inflationary expect back now were resolved on as has and relatively margin we still pressures we
such on raw our technologies, labor our energy, business demonstrated which and our model. and costs the culture We good overall pressures overhead success materials, continue to even strength inflationary the of as counteracting have
to also institutionalizing strong factories, engineering commercial and make Novanta Growth across continue the We in with teams. progress our in channels System our
despite common macroeconomic NGS allowing expansion, environment. to our help financial deliver results tools the Our will continue us ongoing margin to strong ensure
on. or $XX were sales. Fourth roughly of Moving XX% R&D expenses million quarter
year, Fourth XX% million full of again, were $XX expenses roughly million, $XX SG&A were about sales. of expenses R&D about the For sales. XX% or quarter
full company $XXX for margin EBITDA year, and were XX% again, in million, of Adjusted quarter expenses quarter adjusted the a the were flat expenses Overall percent expansion. year-over-year For as of of our flat spending XXXX SG&A line $XX approximately fourth we XX% sequentially a with continue in million sales. full the manage operating in was EBITDA growth roughly the carefully to sales the and as or year margin. about
full more $XXX year, of XXXX to million the growth For $XXX in was year-over-year. EBITDA in XX% XXXX, adjusted representing compared approximately than million
income the tax tax fourth front, structural XXXX mix in to of benefits. non-GAAP This XX%. quarter and our due deferred jurisdictional On the the of rate tax from rate was statutory some
prior the full our non-GAAP This was compensation benefits. rate tax mainly to year, XX.X%. due year, than higher For for rate XXXX less equity windfall is
of in was non-GAAP in share an Our per quarter adjusted to compared increase XX% fourth of XXXX, the the quarter $X.XX earnings year-over-year. $X.XX
earnings adjusted XX% $X.XX to the For was of XXXX, share increase full in year, non-GAAP our per $X.XX year-over-year. an compared
tax year, and expense than EPS was XX% adjusted year-over-year grew the While higher rate. EBITDA operating impacted income for and by adjusted more growth interest full a higher
cover year. We cash is to also when off was to further level linearity. and into strong began as continue the up guidance XX% teams collections outlook. that to quarter quarter sequentially shipment dynamic which share I I'll purchases better expect Fourth due XXXX, the inventory prior cash flow flow operating Fourth slightly and improved which $XX million, our versus
of due $XX despite costs. the For quarter R&D $XX gross the taxes the million. to negatively operating tax with amortization cash year cash law full in approximately of $XXX flow ended the related of was being was This by change million. cash impacted approximately XXXX, debt to from flow US higher million We
was Our times. gross X.X leverage
$XXX net fund million, a was great further to in the our However, company putting debt acquisitions. position
the turn now on I'll update segment. the of to operating performance
Photonics First, I'll start with segment. the
For the DNA growth XXXX, This of XX% segment industrial fourth and quarter advanced segment in applications of to medical saw their demand experience sequencing. applications, revenue very this traditional strong continues customer year-over-year.
persistent through which efficiently. supply outcome output challenges We to manage and created our to factory continue chain are teams the fight very with these pleased disruptions,
book-to-bill demonstrated Our was deliver supply this to chain extraordinary and fourth results. manufacturing quarter. in strong X.X the these teams resilience in segment The
as continue them position their Design see deliveries significant many times Yet and fourth from year-over-year. single the we in perceived still new are year XX% The safety product of due favorable coverage total past X.XX grew stock a revenue up team greater sales new parts digit for basis regular of of the in applications, full products than than hold wins quarter the at seeing stayed and margin year XXXX. and the were excellent XX% adjusted Photonics, industrial up customers for no full meaningful business Within out and high of demand more rates from and which strong with align Novanta. in order to previously, better XX%, we resilient segment signals in our the stocks. our medical drop in leaves nearly as backlog us orders The book-to-bill gross was to growth points sales very reduce mentioned year-over-year. to As overcoming strength Photonics continues XXX win XXXX and new difficult year-over-year also lead year-over-year actual high was was comps. for attractive customers
and the segment segment. than strength saw expectations. serves of insufflator reported evacuation Turning is medical surgical elective Growth which in markets XX% predominantly by our better smoke to was our our this continued end Vision segment success procedures This in in technologies. revenue and year-over-year, driven
addition, to prior the JADAK with to segment challenges in quarter gradually returned the supplier business now with lead in under of decrease this further X saw the been in customers quarter fourth our the line our Vision in reducing just have continue a their end experiencing ordering In The business strengthening book-to-bill the resolved. as solid growth as is But at time, markets. same the times. line
in for from book-to-bill line than smoke with business digit. further full of call, greater the Design our as win in $XX our win in revenue impact products XXXX. year, progress this wins early generate XX% segment year double specifically going of segment Design the growth year-over-year to mentioned and in breaking faced million this in and our this is solely full very record XXXX that. last because difficult index after MIS this from the activity of the business design cumulative sales. The for XXXX the was the in activity remained in the fourth was But vitality segment segment declined comparisons down quarter evacuation X.XX. For design-in
be So years. for next several continue the large a will company this for driver the organic growth overall segment to of
turning prior to in guidance. most pronounced The via-hole more drilling Precision revenue applications, experienced was microelectronics decline with of in fell our quarter. steep decline our and our our than a year-over-year line in solely applications, Finally, Motion in XX% which nearly This our the was a decline segment. XX%. This year-over-year segment due to expectations PCBA
the in Excluding of sequentially. improved the this mid in segment demand this Despite the which significant was digits remainder space, grew segment this in decline, book-to-bill drop the X.XX, microelectronics ratio single the quarter. in overall
the year was full this basis, ratio book-to-bill the segment On in X.XX.
was New of both product total for the the revenue greater XX% year. sales than full quarter and
now the this However, our includes business product new lower rates a from ATI than overall of product which ratio proportion segment. sales line, has revenue
As development their with when and and design in accelerate product accelerate are to the business, acquired we wins customers. we investing their new mentioned we to innovation offerings
making a this are and of meaningful the here, in We Adjusted talent flat the with we NPI of first down progress not trajectory new on this gross is on believe XXXX in existing business came margin our the to is sales ATI. the segment good since we adding great new par sequentially. segment which ATI, leadership and of slightly was this year-over-year year-over-year the engineering Because lines. year addition are quarter, full at into bring business growth XX.X%, of in
guidance. to turning So
given term increase coverage, deliveries. of line backlog reduced both to level expect and due remain by bookings near Novanta's Novanta's year for price perceived lower annual expect and their our the our In some lead the moderate first to actual in X caused times half and initiative. we continue past book-to-bill with first products quarter, in volatility the as of customers particularly their We ordering below to for
nor not in to expected Overall, of a we The cancellations quarter. our ordering any and materialize. Novanta have participate. reflection is which strength customer backlog the is first products any normalize innovations this double applications our seen of However, of after we the
the to any Over range saw coverage XX% the backlog first overall XXXX of with XXXX. helping coverage reduce fashion quarters, are for macroeconomic to few XX% coverage the high we we in XX% the entering course with versus our normalizing XXXX, orderly strong backlog expect we backlog volatility. an reduce closer Regardless, to to in
medical elective driven sequencing the expect to to our We end DNA market. in strong year, and all markets introductions, product demand particularly remain surgical in procedures new some by extent,
in solid We Revenue growth expect medical our production medical XXXX, medical our and our applications with sales. equipment growth production DNA both largely capital both coming sequencing in is consumables limited from consumables our and these technologies. by capacity
Czech in we actions ramp the and investing facility expect this, based early taking are to new expenditures to are XXXX capacity Both up to in Manchester, We overcome including resolve manufacturing new progressing capital facilities fully United in facility. investing manufacturing nicely Kingdom XXXX. a in medical our constraints and
industrial advanced end markets. our to Turning
grow based markets and XD particularly applications, and expect space, material to based strength continue markets. We in processing to industrial end robotics in see printing and laser traditional resilient XXXX, industrial laser metrology the automation
industrial demand this expect applications to in double microelectronics via is business PCBA somewhat, applications, our headwind should drilling line semiconductor hole versus with in niche market the drive growth XXX wafer In we introductions moderate revenue applications focus overall While fab will markets, which a allow spending point areas. Novanta our XXXX. basis environment, experience to to XXX for and end growth digit declines and our expected application our product new in the on secular in
sales the will exposure sales This microelectronics the year full of to the year. in over compares to X% XX% sales of of overall X% X% XXXX quarter. and of to overall Our decline of course the for fourth
be beyond cyclical we expect more microelectronics to further As to to be we out look our within muted. exposure be applications XXXX, more
our expect We secular lithography content and application growth this and bulk to revenue are in the microelectronics represent we area XXXX of to deep the deepening our and and applications, beyond. extreme UV exposure
guidance. revenue with starting So
here in digit we the represents single $XXX the year-over-year. which $XXX million, revenue range in to expect mid as growth GAAP XXXX, million of quarter stand today, first we territory Our revenue
that decrease the and pull mid A in effects the whereas really industrial how in have year $XXX also expect likely range result reacts The to is to in in revenue a capital for single year in the spending will on capital a as environment year-over-year. rate factor interest in can digit full rising through our revenue catalyst a changes of an XXXX, of we the rates demand industrial uptick rate of growth OEM our implies environment For customers. spending. range which million act sales and full GAAP software million, $XXX
first segment applications. Customer level, in revenue revenue this in segment and the the to is single markets. digit. range a in quarter, some segment expect robust year, with In industrial in growth resilient this full in expected including to and DNA segment we to in across be up On continued Photonics to medical the of grow Demand XX% applications demand areas, remains other year-over-year. multiple continues XX% this multitude be application industrial mid sequencing segment medical the
Precision partially and regional semiconductor areas industrial caused outbreak. related down be up the slightly markets. some specific nearly disruptions in and approximately application December driven side segment by by down PCBA drilling expected in expected industrial applications of but back January first be to quarter. growth market quarter, applications the the These to sequentially the The year-over-year year-over-year end Motion is the and to COVID medical and in decline China in flat traditional is the robotics, via-hole XX% offset the Our microelectronics by downturn robotics XX% are
down single low the applications our full dynamics. this caused and in likely by remain digits flat Photonics segment, demand to core targeted strong. revenue year to Similar a basis, in to segment be On aforementioned the is
expenditure On XX% the hospital XX% segment of generally and demonstrate in CapEx sees to is first growth our in which in Finally, tied larger with quarter sequential expected basis, revenue to OEMs, a to range shipments medical our budget. orders is the this segment seasonality year-over-year. some Vision
the driven from continue return a elective strong globally. surgical We to by demand of procedures markets, end see medical
year the digit On double and depending revenue low the expected the production to high in chain is supply digit growth basis, our full be capacity. challenges on territory, to single
end So demand at limited effectively, we by market are this time. not
the Moving on to margin. adjusted gross Novanta's overall
quarter. the gross up expected flat in margins is to sequentially resolved China the continued approximately which expect expected segments to Precision is are fourth first are electronic quarter be XX.X%, Vision We to in outbreak from Gross shortages. quarter pressure whereas due which segment the The are first sequentially, and gross Photonics margins regional disruptions to to the the margins Motion sequentially. COVID January, be December from in part be expected up continued now and in see and the
progresses, expect the risks these and year acceleration we initiatives. the headwinds and be Growth pricing will mitigated initiative reduced further are our through As of Novanta the System
As consequence, XX%, and expect of of points adjusted we between XX.X% a XX full year-over-year. the XXXX, expansion for XXX margin year between now gross basis representing and margins
be are R&D expected million million Turning and quarter. to SG&A expenses. They to approximately $XX the to first $XX in
roughly a full was $X range EBITDA million $XX for in Depreciation significant For the in $X first and of to we aforementioned for be the will the to range in million range our The million $XX EBITDA in and launches full million and Interest first driven in technologies million by million million expense, or quarter $XXX product of investments $XX a smoke which the XXXX, the for a the cost driven slightly million $XX by full in nearly Vision to EBITDA in around rise XXXX full $XXX range the particularly our the will year. million the insufflator quarter the The segment increases million. engine. expect the margin of evacuation in tied full year XX%. the million of in increase $X be commercial in the year, first of is of million tied $X labor innovation, rates. annual in expected year investments is cost adjusted approximately $XXX year-over-year fourth the to quarter expense $XX of and to further is our quarter. and cycle, expected million million XXXX, to $XX in nearly year. approximately $XXX for first million quarter in first quarter interest of expense expect full XXXX and compensation approximately in we some and the an be Stock of will And be investments $XX be year above adjusted
Our average approximately year. full rate a guidance the of assumes weighted interest X% for
impact term, down rates, range debt mitigate focus the drives to In is we year rising EPS one near of of full on the the our will guidance. paying factor and that this
as focused to and year geographical expense our acquisition in on expect the through be flows. interest deal However, also strategy. how mentioned, flow unfold Matthijs availability contingent acquisition heavily of Therefore, we and our largely the cash our
XX% XXXX. income non-GAAP for our expect the quarter around United full tax for around be The XX.X% in the our in income. rates tax year of to rise XX% mix tax by and Kingdom rise the expectations in from to the We rate rate driven corporate is as well the first jurisdictional as
of also framework OECD law any XX The to Diluted Pillar new nations rate to changes to corporations. average tied member for approximately tax We are an is our factored be therefore, immediate implications million weighted of tax XX% hopes expectations. tax outstanding international are conform investigated globally rate which shares. a that tax Two the are will changes, and being by into shares monitoring us, imposes this still minimum law not
for quarter a $X.XX expect year. diluted the in share, adjusted and $X.XX of per the to we first full to For $X.XX range earnings $X
bring we in levels. Finally, we inventory to normalized to improve gradually flows XXXX as cash expect our down more
events equity and due quarter seasonal first payments. the timing expect compensation tax the somewhat to of of the be lower incentive to than remainder vesting compensation We cash flows year payments,
to us expect spending However, progresses the cash as year in to the acquisition increase for accelerate aforementioned despite in capacity we capital our strategy. putting the expansions, a position great flow strengthen
does in guidance exchange not significant assume changes As foreign rates. always, this any
above adjusted full sales performance the highest and resiliency had double to year share. the was in portfolio. adjusted digit quarter double of ever expectations year. level the EBITDA full of as and digit reported summary, growth earnings per We our a our and testament in as growth well In the saw XXXX for We fourth Novanta's the with of organic
progressing the chain results, Our inflationary helping deliver teams innovation new still platforms and to supply and work winning company while continue disruptions great customer pressures our pipeline. difficult through
grateful Despite strong be success well shareholders. environment. in for to more a growth us This concludes strong we look our to commitments seeing environment of see rising we're outstanding employees, attracting continuing continue deliver deliver We uncertain on our this below expect labor forward their efforts We XXXX employees continue performance very to to and talent. macroeconomic results dynamic at prepared remarks. remain see the our our financial rates and year. in this help to to environment, the rate successful our tireless past attrition to We and market interest top and and our the great customers to remaining to
questions. for now the We'll call open
