3d58ccd4213c636949be7b157e5dee74d006faed42a6de50fa29390463fc37d1

fe3d96c5bed2da0867bb99ff098681a408157a32e5018564a3fce227f8556a77

54f30a8aba2b5f3436059020765f028ffe68e16f5dafd4734802c362ad67db15

| Program Details          | Program 1       |
|--------------------------|-----------------|
| **Approval Date**        | February 2020  **[0000950170-24-121113_novt-20240927.htm:46]** **[0000950170-24-121113_novt-20240927.htm:18]**  |
| **End Date/Duration**    | No specific end date; may be suspended or discontinued at any time  **[0000950170-24-121113_novt-20240927.htm:46]**  |
| **Total Additional Amount** | **$50.0 million**  **[0000950170-24-121113_novt-20240927.htm:46]** **[0000950170-24-121113_novt-20240927.htm:18]**  |
| **Remaining Authorization** | **$49.5 million** (as of 2024-09-27)  **[0000950170-24-121113_novt-20240927.htm:46]** **[0000950170-24-121113_novt-20240927.htm:18]**  |
| **Details**              | Purpose is to offset dilution from equity awards; repurchases are discretionary and funded through cash on hand and operations  **[0000950170-24-021689_novt-20231231.htm:67]** **[0000950170-22-022949_novt-20220930.htm:51]** **[0001564590-22-028608_novt-10q_20220701.htm:48]** **[0000950170-23-039422_novt-20230630.htm:45]** **[0000950170-24-121113_novt-20240927.htm:46]** **[0000950170-23-059817_novt-20230929.htm:45]** **[0000950170-24-091261_novt-20240628.htm:44]** **[0000950170-24-054007_novt-20240329.htm:45]** **[0000950170-23-019206_novt-20230331.htm:41]**  |

add87237aa880ddf302f54cec8d2f9749064e5d94e79bc59472ad632082dc2fd

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

United States

Germany

Rest of Europe

China

Rest of Asia-Pacific

Japan

Other

Total Revenue

553a252df16cf5a7736550b70e63b339477bdfd4f347dab427346787a5f6ef8d

Photonics

Vision

Precision Motion

Laser Products

Vision Technologies

Precision Medicine and Manufacturing

Medical Solutions

Robotics and Automation

8447b3b4484ed81733118ab925b9d2ff6a49598e9eeb6a4452926fc330ae4785

Novanta Inc. is a global supplier of core technology solutions that empower medical and advanced industrial original equipment manufacturers (OEMs) with precision and performance. The company specializes in engineering components and subsystems for demanding applications, leveraging expertise in photonics, vision, and precision motion technologies. Novanta's offerings cater to critical markets such as healthcare, robotics, and advanced manufacturing.

1. **Medical Solutions** - Develops and supplies medical insufflators, pumps, visualization solutions, video processing technologies, touch panel displays, and machine vision systems for minimally invasive surgery, medical imaging, and patient monitoring.  **[0000950170-24-021689_novt-20231231.htm:6]** **[0000950170-24-021689_novt-20231231.htm:132]** **[0000950170-24-054007_novt-20240329.htm:34]**   
   - *Sub-products:* RFID technologies, barcode identification systems, thermal chart recorders, and light/color measurement devices.  **[0000950170-24-021689_novt-20231231.htm:6]** **[0000950170-24-021689_novt-20231231.htm:132]** **[0000950170-24-054007_novt-20240329.htm:34]** 

2. **Precision Medicine and Manufacturing** - Provides photonics-based solutions, including laser scanning systems, laser beam delivery, CO2 lasers, solid-state lasers, ultrafast lasers, and optical light engines for advanced industrial processes, medical imaging, and DNA sequencing.  **[0000950170-24-021689_novt-20231231.htm:6]** **[0000950170-24-021689_novt-20231231.htm:132]** **[0000950170-24-054007_novt-20240329.htm:34]** 

3. **Robotics and Automation** - Offers optical and inductive encoders, precision motors, servo drives, motion control solutions, integrated stepper motors, robotic end-of-arm technology, and air bearing spindles for robotics, automation, and microelectronics applications.  **[0000950170-24-021689_novt-20231231.htm:6]** **[0000950170-24-021689_novt-20231231.htm:132]** **[0000950170-24-054007_novt-20240329.htm:34]**

f7464ef93621ced5dd18908bbf58c6ddb32d40534e8b0327eb7d5e1b44f7b313

1. Your precision medicine and manufacturing segment experienced a 15% sales decline in Q3, with adjusted gross margins down due to lower factory utilization  **[NOVT_3405776_7]** **[NOVT_3405776_8]** ; what specific steps are you taking to mitigate the impact of this decline on overall company margins, and how confident are you in a rebound in 2025 given the current market dynamics  **[NOVT_3405776_6]** **[NOVT_3405776_7]** ?

2. Given that nearly all shipments of your DNA sequencing products originally expected in Q4 have been rescheduled to 2025 due to customer challenges  **[NOVT_3405776_8]** , how are you addressing the risks associated with customer delays, and what assurances do you have that these delays won't extend further into 2025  **[NOVT_3405776_8]** **[NOVT_3405776_2]** ?

3. Despite deferring approximately $25 million in revenue into 2025, your guidance for 2025 remains at up to 10% organic growth  **[NOVT_3405776_12]** ; can you elaborate on why the deferred revenue isn't translating into a higher growth rate for 2025, and whether there are other factors offsetting this potential increase  **[NOVT_3405776_12]** ?

4. With the decremental gross margin in your precision medicine and manufacturing segment being almost 100% due to maintaining fixed costs despite lower volumes  **[NOVT_3405776_18]** , what is your strategy to improve margins if volume recovery in 2025 is slower than anticipated  **[NOVT_3405776_18]** ?

5. You've mentioned that macroeconomic and geopolitical uncertainties are causing customers to defer purchases  **[NOVT_3405776_2]** **[NOVT_3405776_8]** ; how resilient is your business model to prolonged uncertainties, and what contingency plans do you have if the anticipated market recovery in 2025 does not materialize as expected  **[NOVT_3405776_20]** **[NOVT_3405776_2]** ?

17d58440fa8ac95c2888091f72534d8c43584dfdfffff715a0202a10fa4df0be

1. **Revenue Guidance and 2025 Growth Outlook**  
   **Q:** Why is 2025 growth guidance only up to 10%?  
   **A:** Management explains that despite deferring an additional **$25 million** into 2025, they are being cautious due to macroeconomic and geopolitical uncertainties, including a contentious election and customers' reluctance to commit amid uncertainty. However, they emphasize they are not losing any market share, and product launches are still scheduled for 2025.  **[NOVT_3405776_12]** 

2. **Gross Margin Decline in Precision Manufacturing**  
   **Q:** Why did gross margin drop significantly in Precision Manufacturing?  
   **A:** The significant gross margin decline is due to lower volumes in a facility with largely fixed costs, primarily caused by a decrease in DNA sequencing orders. To avoid impairing their ability to ramp up in early 2025, they maintained the cost structure, resulting in higher-than-expected decrementals.  **[NOVT_3405776_18]** 

3. **Status of New Product Launches**  
   **Q:** Has any new product launch slipped from 2025 into 2026?  
   **A:** Management confirms that no new product launches have been delayed into 2026. While launches like EUV/DUV slipped from 2024 into 2025, the overall expected incremental revenue of **$50 million** remains the same, with a full-year ramp expected in 2025.  **[NOVT_3405776_17]** 

4. **Advanced Industrial Market Outlook**  
   **Q:** Why do you think advanced industrial is bottoming?  
   **A:** They observe multiple indicators, including customer conversations and an uptick in short-cycle industrial business, which typically signals a bottoming and potential recovery ahead. This gives them optimism, though timing on longer-cycle business recovery remains uncertain.  **[NOVT_3405776_19]** 

5. **Motion Solutions Revenue Expectations**  
   **Q:** Is Motion Solutions still expected to be down $10 million?  
   **A:** Yes, they maintain the expectation that Motion Solutions revenue will be around **$80 million**, down from the previous **$90 million**, impacted by market dynamics in life sciences tools.  **[NOVT_3405776_16]** 

6. **Industrial Backdrop in 2025 Guidance**  
   **Q:** What industrial environment is assumed in 2025 guidance?  
   **A:** Management expects a more subdued industrial environment in 2025, assuming short-cycle business growth continues but long-cycle business remains subdued. Recovery in the longer-cycle industrial market would positively impact their outlook if it happens faster than expected.  **[NOVT_3405776_20]** 

7. **Earnings Per Share Decline in Q4**  
   **Q:** Why is Q4 EPS expected to drop more than revenue?  
   **A:** The EPS decline is due to a higher tax rate from increased medical sales in Germany and a sequential uptick in operating expenses related to compensation changes and project timing.  **[NOVT_3405776_14]** 

8. **Technology Supplied for EUV/DUV Applications**  
   **Q:** What technology are you supplying for EUV/DUV applications?  
   **A:** They are supplying a new type of technology not supplied before, solving a valuable problem for the customer. The delay is about launch timing and not related to the product itself.  **[NOVT_3405776_15]** 

39d24b4c82b27e9aea50f4830c88200e1223ebd76ef343f5fef31f1d4c5041a8

---

### **1. Q3 2024 Earnings Call**
- **Issued Period**: Q3 2024  
- **Guided Period**: Q4 2024 and FY 2024  

#### **Guidance for Q4 2024**:
1. **Revenue**: Expected to be slightly weaker due to customer-specific timing issues and macroeconomic factors, but no specific dollar amount provided.  **[NOVT_3405776_8]** **[NOVT_3405776_2]**   
2. **Adjusted Gross Margin**: Approximately **46%**.  **[NOVT_3405776_10]**   
3. **Adjusted EBITDA**: Expected to be in the range of **$50 million to $52 million**.  **[NOVT_3405776_10]**   
4. **Adjusted EPS**: Expected to be in the range of **$0.70 to $0.74**.  **[NOVT_3405776_10]**   
5. **Interest Expense**: Expected to be slightly above **$7 million**.  **[NOVT_3405776_10]**   
6. **Non-GAAP Tax Rate**: Approximately **20%**.  **[NOVT_3405776_10]**   
7. **Organic Growth**: Expected to **sequentially improve**, returning to **low single-digit growth**.  **[NOVT_3405776_8]**   
8. **Cash Flow**: Expected to return to **year-over-year growth**.  **[NOVT_3405776_10]**   

#### **Guidance for FY 2024**:
1. **Revenue**: Expected to be in the range of **$948 million to $953 million**.  **[NOVT_3405776_10]**   
2. **Adjusted Gross Margin**: Approximately **46%**.  **[NOVT_3405776_10]**   
3. **Adjusted EBITDA**: Expected to be in the range of **$208 million to $210 million**.  **[NOVT_3405776_10]**   
4. **Adjusted EPS**: Expected to be in the range of **$3.02 to $3.06**.  **[NOVT_3405776_10]**   
5. **Non-GAAP Tax Rate**: Approximately **19%**.  **[NOVT_3405776_10]**   
6. **Cash Flow**: Expected to demonstrate **double-digit growth**.  **[NOVT_3405776_10]**   
7. **Gross Leverage Ratio**: Expected to reduce to **2 or below**, with net leverage closer to **1.5x**.  **[NOVT_3405776_7]**   
8. **New Product Revenue for 2025**: Reconfirmed **$50 million incremental new product revenue**.  **[NOVT_3405776_2]**   
9. **Capital Equipment Market Recovery**: Expected to improve in **mid-2025**, particularly in life sciences and bioprocessing markets.  **[NOVT_3405776_2]**   

---

### **2. Q2 2024 Earnings Call**
- **Issued Period**: Q2 2024  
- **Guided Period**: Q3 2024 and FY 2024  

#### **Guidance for Q3 2024**:
1. **Revenue**: Expected to be in the range of **$241 million to $244 million**, representing organic revenue growth of **1% to 2%** year-over-year and sequential growth of **3% to 4%**.  **[NOVT_3396646_7]**   
2. **Adjusted Gross Margin**: Expected to be in the range of **47% to 47.5%**.  **[NOVT_3396646_7]**   
3. **Adjusted EBITDA**: Expected to be in the range of **$56 million to $58 million**, representing a greater than **23% EBITDA margin**.  **[NOVT_3396646_8]**   
4. **Adjusted EPS**: Expected to be in the range of **$0.85 to $0.89**.  **[NOVT_3396646_8]**   
5. **Interest Expense**: Expected to be approximately **$8 million**.  **[NOVT_3396646_8]**   
6. **Non-GAAP Tax Rate**: Expected to be around **18%**.  **[NOVT_3396646_8]**   
7. **Operating Expenses**:  
   - **R&D and SG&A Expenses**: Approximately **$68 million to $69 million**.  **[NOVT_3396646_7]**   
   - **Depreciation Expense**: Approximately **$4 million**.  **[NOVT_3396646_7]**   
   - **Stock Compensation Expense**: Approximately **$7 million**.  **[NOVT_3396646_7]**   

#### **Guidance for FY 2024**:
1. **Revenue**: Expected to be at the bottom of the previously communicated range of **$975 million**, representing reported revenue growth of greater than **10%**.  **[NOVT_3396646_6]** **[NOVT_3396646_7]**   
2. **Adjusted Gross Margin**: Expected to be in the range of **46.6% to 47%**, with the bottom end of the range raised by **60 basis points** compared to February guidance.  **[NOVT_3396646_7]**   
3. **Adjusted EBITDA**: Expected to be in the range of **$215 million to $222 million**, representing double-digit growth year-over-year.  **[NOVT_3396646_8]**   
4. **Adjusted EPS**: Expected to be in the range of **$3.20 to $3.35**, with the bottom end of the range raised by **$0.10** compared to prior guidance.  **[NOVT_3396646_8]**   
5. **Interest Expense**: Expected to be approximately **$8 million** in both Q3 and Q4 2024.  **[NOVT_3396646_8]**   
6. **Non-GAAP Tax Rate**: Expected to be around **18%**.  **[NOVT_3396646_8]**   
7. **Gross Leverage Ratio**: Expected to reduce to **2.0x or below** by year-end 2024.  **[NOVT_3396646_5]**   

---

### **3. Q1 2024 Earnings Call**
- **Issued Period**: Q1 2024  
- **Guided Period**: Q2 2024  

#### **Guidance for Q2 2024**:
1. **Revenue**: Expected to be in the range of **$230 million to $235 million**, representing an organic revenue decline of **6% to 8% year-over-year** and sequentially flat.  **[NOVT_3386876_5]**   
2. **Adjusted Gross Margin**: Expected to be in the range of **46% to 46.3%**.  **[NOVT_3386876_5]**   
3. **Adjusted EBITDA**: Expected to be in the range of **$48 million to $50 million**.  **[NOVT_3386876_6]**   
4. **Adjusted EPS**: Expected to be in the range of **$0.68 to $0.74**.  **[NOVT_3386876_6]**   
5. **Interest Expense**: Expected to be nearly **$8.5 million**.  **[NOVT_3386876_6]**   
6. **Non-GAAP Tax Rate**: Expected to be around **18%**.  **[NOVT_3386876_6]**   
7. **Operating Expenses**:  
   - **R&D and SG&A Expenses**: Approximately **$68 million to $69 million**.  **[NOVT_3386876_5]**   
   - **Depreciation Expense**: Slightly below **$4 million**.  **[NOVT_3386876_6]**   
   - **Stock Compensation Expense**: Slightly below **$7 million**.  **[NOVT_3386876_6]**   

---

### **4. Q4 2023 Earnings Call**
- **Issued Period**: Q4 2023  
- **Guided Period**: Q1 2024 and FY 2024  

#### **Guidance for Q1 2024**:
1. **Revenue**: Expected to be in the range of **$225 million to $230 million**, representing organic revenue declines of **4% to 6% year-over-year**.  **[NOVT_3375680_8]**   
2. **Adjusted Gross Margin**: Approximately **45.5% to 46%**.  **[NOVT_3375680_9]**   

#### **Guidance for FY 2024**:
1. **Revenue**: Expected to be in the range of **$975 million to $1 billion**, representing low single-digit organic growth.  **[NOVT_3375680_7]** **[NOVT_3375680_8]**   
2. **Adjusted Gross Margin**: Approximately **46% to 47%**.  **[NOVT_3375680_8]**   
3. **Adjusted EBITDA**: Expected to be in the range of **$215 million to $225 million**.  **[NOVT_3375680_8]**   
4. **Adjusted EPS**: Expected to be in the range of **$3.10 to $3.35**.  **[NOVT_3375680_8]**   
5. **Interest Expense**: Approximately **$31 million**.  **[NOVT_3375680_8]**   
6. **Non-GAAP Tax Rate**: Around **18%**.  **[NOVT_3375680_8]**   

--- 

56045ce6cb80058669d222021dc8e5e58673bb4d9aad90adda72ddc854160781

| Name            | Position                        | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------|---------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Matthijs Glastra| Chair of the Board and CEO      | May 13, 2021 (Chair), September 1, 2016 (CEO) | Matthijs Glastra has served as **Chair of the Board of Directors** at Novanta since **May 13, 2021** and as **Chief Executive Officer** and Director since **September 1, 2016**. He joined Novanta in 2012 as a Group President and was later appointed Chief Operating Officer in February 2015. Prior to Novanta, Mr. Glastra had an 18-year career at Philips, where he held various leadership roles in advanced industrial and medical end markets, including CEO of Philips Entertainment Lighting and COO of Philips Lumileds. He holds a Master of Science in Applied Physics from Delft University of Technology, an Advanced Engineering Degree from ESPCI in Paris, and an MBA from INSEAD in France.  **[0000950170-24-040709_novt-20240402.htm:10]** **[0000950170-24-021689_novt-20231231.htm:140]**  |
| Robert J. Buckley| Chief Financial Officer        | March 31, 2011   | Robert J. Buckley has served as the Chief Financial Officer of Novanta Inc. since **March 31, 2011**. He initially joined the company in an advisory capacity earlier that year and transitioned to the CFO role on the specified date. His employment agreement includes provisions for annual reviews and adjustments to his compensation.  **[0000950170-24-040709_novt-20240402.htm:49]** **[0000950170-24-040709_novt-20240402.htm:37]**  |
| Michele Welsh   | General Counsel and Corporate Secretary | July 11, 2022   | Michele D. Welsh joined Novanta as General Counsel and Corporate Secretary on **July 11, 2022**. She has extensive experience working with global, public companies across multiple industries. Before joining Novanta, she was Vice President, Assistant General Counsel & Legal Compliance at Carlisle Companies Incorporated from May 2018 to May 2022. Prior to that, she held various senior legal roles at Aon plc from September 2007 to April 2018. Ms. Welsh holds a B.S.B.A. from the University of North Carolina – Chapel Hill and a J.D. from Boston College Law School.  **[0000950170-24-040709_novt-20240402.htm:21]** **[0000950170-24-040709_novt-20240402.htm:50]** **[0000950170-23-012137_novt-20230406.htm:18]**  |
| Brian Young     | Chief Human Resources Officer   | December 2016    | Brian S. Young joined Novanta Inc. in **April 2015** as Vice President of Human Resources and was appointed Chief Human Resources Officer in **December 2016**. He has over 20 years of human resources leadership experience in both public and private companies, particularly in sectors such as medical devices, industrial control technologies, and advanced materials. Prior to Novanta, Mr. Young held various HR leadership roles, including Global Human Resource Leader at Hollingsworth & Vose Company and Vice President & Human Resource Officer at CIRCOR International, Inc. He holds a Bachelor of Science degree in Administration of Justice from Pennsylvania State University.  **[0000950170-23-012137_novt-20230406.htm:18]** **[0000950170-23-012137_novt-20230406.htm:52]** **[0001564590-22-013975_novt-def14a_20220512.htm:18]**  |
| John Burke      | Chief Accounting Officer        | August 22, 2024  | John Burke was appointed as the **Chief Accounting Officer** of Novanta Inc. on **August 22, 2024**, succeeding Peter Chang. He has been with Novanta since **2011**, holding roles such as Assistant Corporate Controller (2011–2017), Vice President of Accounting (2017–2021), and Vice President of Global Accounting (2021–2024). Prior to Novanta, he worked at MilliporeSigma as Manager of Technical Accounting and Reporting and at PricewaterhouseCoopers LLP as an audit manager. Mr. Burke is a **Certified Public Accountant** and holds a **Bachelor of Business Administration in Accounting** from the University of Massachusetts-Amherst.  **[0000950170-24-100196_novt-20240822.htm:1]**  |

60cc99784205579e7a64bfc3e4e94ff5a24c8815692d53fb351039f10d055a58

- **Strong Growth Expected from New Product Launches in 2025**: Novanta anticipates approximately $50 million in incremental revenue from new product launches in 2025, including in DNA sequencing, DUV and EUV lithography, and robotic surgery. These launches represent significant growth opportunities as they are scheduled despite recent deferrals.  **[NOVT_3405776_12]**
- **Not Losing Market Share Despite Macroeconomic Challenges**: The company is not losing any market share and remains designed into customers' platforms. Novanta expects business to improve alongside the macroeconomic environment, effectively benefiting from its customers' growth expectations.  **[NOVT_3405776_12]**
- **Positive Momentum in Short-Cycle Businesses**: Novanta's short-cycle businesses are experiencing an uptick in bookings and growth, which is expected to continue. While longer-cycle businesses remain subdued, any faster recovery could favorably impact the company's outlook.  **[NOVT_3405776_20]**

a98ead281a72f69706a2a38ab8e068697c30f3c4b6ed860c9bc1806d37d33efc

- Two of Novanta's three operating segments experienced year-over-year revenue declines in Q1 2024: Precision Medicine and Manufacturing sales declined **6%**, and Robotics and Automation sales declined **12%**.  **[NOVT_3386876_10]**
- The company is exiting its surgical displays business, resulting in a **$10 million** revenue headwind for the full year, negatively impacting overall sales.  **[NOVT_3386876_15]**
- Novanta's EPS growth remains muted due to higher interest rates and higher debt from the Motion Solutions acquisition; gross debt stood at **$517 million** with a gross leverage ratio of **2.6x** at the end of Q1 2024.  **[NOVT_3386876_10]**

af31e625dcce11f97bd7735674b464b2a2b2156b169161e1f6ac5ac4531d27d2

- **Novanta is launching a record number of new products in 2024, up 50% compared to 2023**, which are expected to drive strong growth in the second half and into 2025, particularly in high-growth areas such as medical solutions, precision medicine, and robotics and automation.  **[NOVT_3375680_12]**
- The company anticipates **significant growth in its consumables business**, especially with the introduction of **second-generation smoke evacuators** and new **pump products**, leading to higher gross margins and sustainable cash flow streams. Over time, **the consumables segment is expected to become larger than the capital equipment business**.  **[NOVT_3375680_15]**
- **Broad-based customer wins and design wins** across several high-growth applications—including **DUV/EUV lithography, precision medicine, electric vehicle battery welding, and warehouse automation**—are expected to drive future growth, enhanced by synergies from the **Motion Solutions acquisition** and Novanta's proprietary technology in intelligent subsystems.  **[NOVT_3375680_12]**

5fc3bbdffc3d09f9b07947e9148cb805196f4e41ed4585806fbe7b730d0256fc

- The **Motion Solutions acquisition** may continue to have a **dilutive impact on gross margins** for another year, potentially affecting profitability.  **[NOVT_3396646_10]**
- Uncertainty in the **life sciences market**, **industrial recovery**, and possible **geopolitical disruptions** pose risks to achieving the expected **10% growth in 2025**.  **[NOVT_3396646_15]**
- **Macroeconomic conditions** are causing some customers to **delay new product launches**, which could impact **revenue growth expectations**.  **[NOVT_3396646_14]**

68015020c41cb235fb1775693f653c6a1d45229a55aa458d2d72c0289be819b3

- **Novanta expects strong margin improvement, targeting a 50% gross margin, driven by operational efficiencies from the Novanta Growth System and cost reductions, demonstrating strong financial execution**.  **[NOVT_3396646_10]**
- **Robust pipeline of new product launches, particularly in minimally invasive surgery and robotics and automation, remains on track despite macroeconomic challenges, positioning Novanta for strong growth in 2025**.  **[NOVT_3396646_14]** **[NOVT_3396646_16]**
- **Signs of recovery in life sciences and bioprocessing markets, with expected improvement in 2025, allowing Novanta to capitalize on secular trends in genomics and biologics, contributing to anticipated double-digit organic revenue growth**.  **[NOVT_3396646_9]** **[NOVT_3396646_15]**

cad02b7b3dd17d75bcb334a5ab7710fe51f8c7be961a2d16900ea13dd2088609

- **Expected revenue declines in the first half of 2024 due to macroeconomic weakness and ramp-down of legacy products**, with organic revenue projected to decline between **6% and 4% in Q1**. This is attributed to continued weakness in life sciences and industrial markets, and customers reducing orders of legacy products ahead of new product launches.  **[NOVT_3375680_13]** **[NOVT_3375680_16]** **[NOVT_3375680_10]**
- **Heavy reliance on successful new product launches in the second half to achieve revenue growth**. The company's guidance assumes that growth will return in the second half driven by these launches; any delays or failures could negatively impact revenue targets.  **[NOVT_3375680_13]** **[NOVT_3375680_16]**
- **Uncertainty in the Chinese market and potential macroeconomic risks**. The company acknowledges China as the region with **least visibility**, and any further deterioration in macroeconomic conditions or geopolitical issues could push revenues towards the lower end of guidance.  **[NOVT_3375680_18]** **[NOVT_3375680_11]**

ffc110a4a1ec855076227d3b2ac71e2e38c214ce15bbdade3d0b03d6deb22614

- **Novanta expects to generate over $50 million in incremental revenue in 2025 from new product launches**, across multiple businesses and customers, diversifying risk and showing confidence in growth momentum.  **[NOVT_3386876_11]**
- **The company is on track with new product launches**, with some ahead of schedule, and overall feels good about their progress at the company level.  **[NOVT_3386876_7]**
- **Novanta is seeing early signs of recovery in the microelectronics business**, with bookings normalization and improvements, indicating a potential better second half of the year.  **[NOVT_3386876_14]**

786239351f6cdd99539e2cdc6ce5eee14b083ad288ba2fcffe12f0e1c88e1ca9

- **Significant Reduction in Q4 Revenue Guidance Due to Customer Delays:** The company reduced its fourth-quarter revenue outlook by approximately **$25 million** because customers have rescheduled shipments into 2025, especially in DNA sequencing products and delays in DUV and EUV lithography applications.  **[NOVT_3405776_8]** **[NOVT_3405776_9]**
- **Key Product Launches Deferred, Indicating Potential Demand Weakness:** Several important product launches, including those in DNA sequencing, lithography, and robotic systems, have been postponed to 2025 due to customer-specific challenges and market conditions, suggesting potential underlying demand softness.  **[NOVT_3405776_8]** **[NOVT_3405776_9]**
- **Earnings Per Share Expected to Decline More Than Revenue:** Despite a slight sequential decline in Q4 revenue, the company anticipates a more substantial drop in EPS due to a higher tax rate and increased operating expenses, indicating margin pressures and potential cost control issues.  **[NOVT_3405776_14]**

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Novanta Inc (NOVT)

Financials