morning. Thank you, and Matthijs, good
gross gross million non-GAAP or to margins gross million profit margin. $XXX Our were down year-over-year. a adjusted XX% was adjusted third margin or compared Adjusted quarter gross adjusted XXXX XX% $XXX
impact roughly excluding gross acquisition, adjusted margins However, of Solutions our up Motion basis XX the were points.
margins and of sales have continue we fourth year. segment. Therefore, as performance sales expected we versus decline company to as level unplanned quarter, was lower result in of volumes as precision to anticipation current unfavorable into impact volume brought margin maintain in decline down sales expectations.
Despite our in margin gross this ultimately in segment, XXXX. expect volume than in manufacturing the in rebounded of we factory chosen our a sales but capacity overall medicine and rebounding costs This this Our improve next the
to million $XX R&D quarter, outlook. and approximately sales, lower in compensation adjustments year. SG&A margin million were roughly $XX sequentially or third third EBITDA quarter of of in $XX sales. this year the the based XX% X% the quarter a were quarter the XX% For in Adjusted EBITDA XXXX, the expenses third million due expenses SG&A full expenses adjusted revised prior approximately $XX of in or million versus approximately on were was
On the the tax tax front, XX%. our in was quarter third non-GAAP rate
rate around for end XX%. tax appears full at to the Our year now likely
third earnings non-GAAP Our was year. the versus quarter, flat the adjusted share per prior $X.XX in
EPS growth balance. on higher interest debt remains Our to due muted the higher rate
approximately Third $XX quarter million. was flow operating cash
is cash to timing of correct increase more is a a versus in flows. month with This cash impact [indiscernible] we operating are very fourth flow the seeing quarter and Year-to-date, with shipments, the accounts still performance, receivable. very timing with shipped expect strong up expected the protein cash the Our in for revenue finish year in temporary higher-than-normal XX%, flow the by resulting cash we performance in normal, strong last was quarter. that to monthly
of and the approximately third We ended balance leverage debt a $XXX ratio X.Xx. gross quarter gross a with of million
leverage track gross Our was to X net below, and to closer or remain million. X.X% by net on $XXX debt We to year-end. reducing
by book-to-bill OEM applications have Novanta's For line, strength Weakness our was was deferring customers partially and in which customers industrial the their booking third started offset orders a invasive our for of to quarter, launches by quarter as science product nearly business minimally larger purchases the X.X X.XX. advanced book-to-bill caused surgery in place life had in in XXXX.
Medicine customers in year-over-year our reflects XXXX, the applications sequencing factory the due our gross and book-to-bill precision pushing in sales this see Precision outlook for revised in lower we Turning XX%, X.XX, DNA utilization, affecting margins bookings. Adjusted into driven segment I by the by on. miss orders which segment The as expectations was segments. operating was weaker than prior which were quarter this declined commented which third near-term the medicine to down our Manufacturing markets. to
to the upcoming of our year-over-year, customer team in by win stock segment XX% execution good platforms. sales wins Design were new up in driven
approximately New in sales mid-teens product expectations. was revenue line of percent with
year-over-year XX% automation experienced revenue the robotics Our in year-over-year. and segment and of XX% quarter, a increase bookings grew
Our year, expectations, both largely with to X.XX, as half microelectronics and XXXX second sales market is playing the to book-to-bill end half U.S. line the XXXX. into outlook markets improve expected, of continue applications. for robotics expect The versus the in and gradually improving of in we out with for was first the
gross increased year-over-year, increased on margins points better efficiency Adjusted basis by driven XXX volumes. factory
digit and segment revenue of New segment. strong were up year-to-date. total in and the the this digit in Design XX% double was sales product roughly grew this segment strong in quarter double wins for
as organic basis our a launches bookings expected year-over-year. This strong from solutions almost XX% fully experienced The products. growth were display medical surgical of the X.XX, slightly product and near-term new reported than impact and of of offset saw sales an Finally, XX% our on discontinuing segment better X%. was up year-over-year book-to-bill declined revenue
As market result nearly book-to-bill I we orders come to in environment product saw Precision X.X strong offset already markets. bioprocessing the life for This partly Minamally wher weaker-than-anticipated business as continues placing was a mentioned, from book-to-bill in weakness by Medicine business Surgery to and customers capital Precision our X. in line, new line see weakness large started The continued of had multiomics Invasive launches. ewe sciences, Medicine below a
high as teens start in which large Design down of in year-to-date. points increased margins wins are basis win growth segment to Surgery wins this our this year, in this segment we of wins year-over-year. business sales, is expectations ramp XX Vitality in Invasive Index gross year-over-year, with the products. in line this segment Minamally new But driven to increased XXXX. digit the Adjusted third by those double platform percent quarter in is design a excluding segment larger roughly in strong in
margin expansion segment Solutions was XXX Motion over the the basis acquisition Excluding points. action, in this
in a Now With improve, deferred in into returning we bit guidance. continues get to sequentially that the XXXX. is fourth fourth the turning quarter demand To quarter, the digit more in to single into to organic growth stronger ramp expected being low detail.
half customer sequencing DNA the to XXXX of by products, the challenges. shipments due all in First, originally in our nearly our rescheduled quarter fourth to expected were ship specific customers to first
in at issue rate we However, this XXXX normal first early quarter. shipments expect to in resolved be and a resume the
prospects even long-term application and of products our The remain continue to this strong accelerating. and
expect within we and Next, the launch product of EUV DUV a new applications. lithography
is to prospects customer designed of our the into half second product while market electronic my Similar our it this prior due and the the However, to remain in application to of remains EUV now, and in and efficient conditions, ramp end in XXXX. is long-term continue strong accelerating, enabler our and comment, a position and the GenAI, adoption early electrification more powerful critical as devices. new unfortunately, of lithography smaller, deferred
our with XXXX, updating is shipments their new This make demand, system smoke after to to of integrated materialize our rescheduled customer and filings market stronger-than-expected expected [indiscernible]. into which one Third, broad acceptance has early XXXX. in is enhancements to in a expected to results launching evacuation insufflator FDA product robotic see overall a
in to uptick weaker fourth equipment finally, Unfortunately, recovering despite dynamic, by broadly balances deferrals and life compounded quarter will returning, by in implies early for the quarter. this from customers' this down this see capital but spending the revenue the on spending their is by inventory their customers, is clearly likely and in continue desires Based manage that most service demand fourth be XXXX. capital consumables the science And to customers. overall and their market our bioprocessing activity, customers and
revise all fourth The this the quarter revenue led fourth increasing market net demonstrate Despite expect impact has the and of do us customer approximately versus quarter changes by sales these quarter. to the in our rescheduling growth million. XXXX, we sequentially into third in outlook to organic of $XX
optimistic be secular about will and better-than-market very XXXX that confident are our growth to products end environment attractive improving with markets. continue in We growing new more an drive
revenue signals, expect growth scenarios, year of to full as XX% leads well number half as to the up strong organic growth for a demand dynamics customer clearly which these of on expected to double-digit second XXXX. Based under be XXXX is us
particularly a OEMs' to expect normal revenue our XXXX, to industrial fourth million revenue range and levels. $XXX markets to the than a near-term of the GAAP and For comes XX%, X% $XXX revenue quarter which between the to how macroeconomic of science year-over-year spending life This the we bit geopolitical year-end and represents is continues behavior, revenue customers' and reported of organic and wider XX% in on million, capital X% growth range basis. as inventory uncertainty, given impact and managing that it growth
revenue million. For range revenue expect be year X%. growth GAAP we of slightly in XXXX, a above the acquisitions This in in year DNA Revenue in million On the level, now reported segment pushout the $XXX of we is and the the fourth decline expect expected current full by quarter, from $XXX medicine to to million. impacted year-over-year, and of approximately be percent revenue demand applications. manufacturing sequencing double-digit precision $XX represents to
microelectric as mid-single-digit On growth to continues in expect markets end growth robotics year-over-year. and robotic approximately also the well applications. solutions than basis, continue improvement quarter, XX% to our improvement as quarter. grow we fourth year-over-year reported in is automation year-over-year demand the show in fourth to improve and revenue comes And to segment Our easier from growth in medical applications as in from an expect comparisons. organic expected an segment This an XX% greater
of previously we than expected surgical less it's solid, is before-mentioned outlook from rescheduling customer. growth robotics this a While the
fourth adjusted gross the to quarter. in on Moving margin
the factory be of we that outlook capacity us and maintain we customers maintain the our we we We In improves third quarter. roughly the the of in XX%. the flat are expect growth segments, our seeing delivered demand XXXX. gross as the in -- in includes ready help lower compared approximately This their as to factories to end environment impact to utilization, to gross be for that margins markets margins be expect
we year approximately the gross margins For to XX%. expect full XXXX, adjusted now be
of excluding we approximately acquisition, the For core in our deliver year, impact business. points the Solutions dilutive basis expect XXX full Motion of margin expansion to
represents to to million compensation approximately project We quarter expect expenses the in also R&D third of timing the to SG&A due in R&D spend This and fourth quarter the and sequential $XX million. $XX increase be adjustments. a incentive
full approximately be third expenses the expense, For Depreciation the the which year, similar approximately in will these was million fourth be roughly will approximately $X million. compensation expense, in should third the quarter. fourth the be million $X quarter. And stock $XXX $XXX $X was in in which million quarter, to million quarter,
It adjusted would in For $XX to of the double-digit EBITDA quarter, we represent $XX the million. fourth growth expect range million year-over-year.
year the to the full XXXX, expense, now to is be the in quarter, third above which expect million in run $XXX we For million it adjusted fourth $XXX $X $X Interest quarter. was expected million the slightly EBITDA, to million.
tax to fourth non-GAAP will the Adjusted to full $X.XX share rate earnings $X.XX quarter the year. and our $X.XX be the range $X.XX in XX% expect and year. the of We for and be around the full in for approximately quarter XX% in fourth per
demonstrate growth quarter, flows we and for for we the the cash to expect year-over-year to in expect cash double-digit XXXX. full to fourth growth Finally, year flow return
substantially improve levels to capital year. These Growth allowed our have net System working balance quarter. pay debt down inventory Novanta improvement so us help levels in the continue strong third evidenced far efforts to our the to in as this We use
does any time. not this As to anticipated nor include always, acquisitions changes does assume exchange this it any foreign significant at guidance rates,
execute XXXX. positioned diligently we support operating fundamentals we in intact, about marketplace. share work gain which Novanta their ability remains of our guidance at as of prospects, evident remain model, end long-term quarter, to secular summary, of [indiscernible] and growth strong long-term end product our recovers The the and deliver Growth on the and In the delivered System in business as continue promises third of our and customers the to platforms. grow and of with is the market the the we're despite new the high challenging our we The in is of markets successful outlook feel launch our adoption optimistic which the strong, well results to consistently multiple to were team's
also In through to capital flows compound growth to deployment of addition, work continue cash a and we organic our of combination acquisitions. towards
our disciplined and and excellence acquisition focused being about in also pipeline than potential we pricing. the matter which mentioned, on we executing cash-on-cash remain business of on remain number As but disciplined returns, We doubled targets, no the control means with more Matthijs has controlling what can revenue environment.
prepared call This the We'll now concludes for the remarks. open up questions.
