Artificial Intelligence
DLH Reports Fiscal 2022 Second Quarter Results
Revenue $108.7 Million, Reflecting Short-term FEMA Awards; Earnings $0.50 per share;
Term Debt Reduced to $37.5 Million
ATLANTA, May 04, 2022 (GLOBE NEWSWIRE) — DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of innovative healthcare services and solutions to federal agencies, today announced financial results for its fiscal second quarter ended March 31, 2022.
Highlights
- Second quarter revenue increased to $108.7 million in fiscal 2022 from $61.5 million in fiscal 2021, reflecting the previously-announced award of two FEMA contracts to support Alaska, which accounted for approximately $39.8 million of revenue
- Excluding these short-term contracts, second quarter revenue rose to $68.9 million in fiscal 2022, an increase of 12% over the prior-year period
- Earnings were $7.2 million, or $0.50 per diluted share, for the fiscal 2022 second quarter versus $2.6 million, or $0.19 per diluted share, for the second quarter of fiscal 2021
- Excluding contributions from the aforementioned short-term FEMA contracts, earnings on a non-GAAP basis for the fiscal 2022 second quarter were $3.1 million, or $0.22 per diluted share
- The Company’s term loan was reduced to $37.5 million from $42.9 million during the second quarter;
- Contract backlog was $554.7 million as of March 31, 2022 versus $633.6 million at the end of the first quarter, with approximately $30.0 million of the latter related to Alaska-based task orders
Management Discussion
“Our second quarter continued the positive trends of the first, with strong organic revenue growth and contributions from our Alaska contracts resulting in solid financial performance,” said DLH President and Chief Executive Officer Zach Parker. “The overall business, net of short-term FEMA work, expanded 12% year-over-year, reflecting increased demand for services even during a slower-than-anticipated award environment. In addition, we achieved an operating margin of 9.4% and continued our early repayment of acquisition debt.
“With passage of the fiscal 2022 omnibus appropriations bill in March, contract decision-making should accelerate – at the same time DLH is expected to benefit from obtaining FedRamp authorization for its Infinibyte® data analytics solutions. We are pleased with the progress we are making to strengthen and diversify our capabilities across the key federal markets we serve. While focused on paying down debt and improving the balance sheet, we continue to actively look at potential acquisitions that may enhance and broaden our portfolio of technology-enabled applications. It’s an exciting time at DLH, with many opportunities ahead of us – leveraging our leadership position in innovative, healthcare-related services and solutions to build a unique, customer-centric enterprise that, at the same time, creates value for our shareholders.”
Results for the Three Months Ended March 31, 2022
Revenue for the second quarter of fiscal 2022 was $108.7 million versus $61.5 million in the prior-year period. The increase was primarily due to the Company’s work for FEMA in Alaska – which added approximately $39.8 million in revenue – along with other new business wins and generally higher volume across a number of legacy programs.
Income from operations was $10.3 million for the quarter versus $4.6 million in the prior-year period and, as a percent of revenue, the Company reported an operating margin of 9.4% in fiscal 2022 versus 7.5% in fiscal 2021. Income from operations increased primarily due to performance on the FEMA task orders. Income from operations on the remaining contract portfolio was essentially flat, notwithstanding the increase in revenue, reflecting planned investment in human capital management and business development as we continue to build and strengthen our sustaining business.
Interest expense was $0.6 million in the fiscal second quarter of 2022 versus $1.0 million in the prior-year period, reflecting lower debt outstanding. Income before taxes was $9.7 million this year versus $3.6 million in fiscal 2021, representing 8.9% and 5.9% of revenue, respectively, for each period.
For the three months ended March 31, 2022 and 2021, respectively, DLH recorded a $2.5 million and $1.0 million provision for tax expense. The Company reported net income of approximately $7.2 million, or $0.50 per diluted share, for the second quarter of fiscal 2022 versus $2.6 million, or $0.19 per diluted share, for the second quarter of fiscal 2021. As a percent of revenue, net income was 6.6% for the second quarter of fiscal 2022 versus 4.2% for the prior-year period.
On a non-GAAP basis, EBITDA for the three months ended March 31, 2022 was approximately $12.1 million versus $6.6 million in the prior-year period, or 11.2% and 10.8% of revenue, respectively. A reconciliation of the Company’s performance for the quarter less the contribution of the FEMA task orders compared to the prior-year period is included at the back of this document.
Key Financial Indicators
Fiscal year to date, DLH used $14.8 million in operating cash, reflecting performance of the $22.2 million deferred revenue on the aforementioned FEMA contracts, for which there were advance payments in the fourth quarter of fiscal 2021. Excluding the impact of the FEMA contracts, DLH would have generated positive operating cash flow fiscal year to date.
Fiscal year to date, accounts receivable increased by $28.7 million, including $13.6 million related to the FEMA contracts, for which the cash flow impact was largely offset by corresponding subcontractor accruals. Both the receivables and corresponding payables on the FEMA contracts were largely settled subsequent to quarter end. The remaining increase in accounts receivable is related to normal fluctuations in the timing of customer payments and to growth in the overall business volume.
As of March 31, 2022, the Company had cash of $0.4 million and debt outstanding under its credit facility of $37.5 million, versus cash of $24.1 million and debt outstanding of $46.8 million as of September 30, 2021. The Company has satisfied mandatory principal amortization on the loan facility until December 31, 2024. Subsequent to the end of the quarter, the Company made additional debt payments, reducing the outstanding balance on the term loan to $33 million. As a result of these payments, DLH retired the $70 million debt associated with the Social & Scientific Systems, Inc. acquisition more than two years early. The Company intends to continue using cash to make debt prepayments when possible.
At March 31, 2022, total backlog was approximately $554.7 million, including funded backlog of approximately $82.4 million and unfunded backlog of $472.3 million.
Conference Call and Webcast Details
DLH management will discuss second quarter results and provide a general business update, including current competitive conditions and strategies, during a conference call beginning at 11:00 AM Eastern Time tomorrow, May 5, 2022. Interested parties may listen to the conference call by dialing 888-347-5290 or 412-317-5256. Presentation materials will also be posted on the Investor Relations section of the DLH website prior to the commencement of the conference call.
A digital recording of the conference call will be available for replay two hours after the completion of the call and can be accessed on the DLH Investor Relations website or by dialing 877-344-7529 and entering the conference ID 7532524.
About DLH
DLH (NASDAQ:DLHC) delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s future financial performance. Any statements that refer to expectations, projections or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements to the effect that the Company or its management “believes”, “expects”, “anticipates”, “plans”, “intends” and similar expressions) should be considered forward looking statements that involve risks and uncertainties which could cause actual events or DLH’s actual results to differ materially from those indicated by the forward-looking statements. Forward-looking statements in this release include, among others, statements regarding estimates of future revenues, operating income, earnings and cash flow. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Our actual results may differ materially from such forward-looking statements made in this release due to a variety of factors, including: the outbreak of the novel coronavirus (“COVID-19”), including the measures to reduce its spread, and its impact on the economy and demand for our services, are uncertain, cannot be predicted, and may precipitate or exacerbate other risks and uncertainties; the risk that we will not realize the anticipated benefits of acquisitions; the challenges of managing larger and more widespread operations; contract awards in connection with re-competes for present business and/or competition for new business; compliance with new bank financial and other covenants; changes in client budgetary priorities; government contract procurement (such as bid and award protests, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the ability to successfully integrate the operations of acquisitions; the impact of inflation and higher interest rates; and other risks described in our SEC filings. For a discussion of such risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s periodic reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2021, as well as subsequent reports filed thereafter. The forward-looking statements contained herein are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and business.
Such forward-looking statements are made as of the date hereof and may become outdated over time. The Company does not assume any responsibility for updating forward-looking statements, except as may be required by law.
CONTACTS:
TABLES TO FOLLOW
DLH HOLDINGS CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands except per share amounts)
(unaudited) | (unaudited) | |||||||||||
Three Months Ended | Six Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
Revenue | $ | 108,699 | $ | 61,506 | $ | 261,500 | $ | 119,358 | ||||
Cost of Operations: | ||||||||||||
Contract costs | 88,831 | 48,722 | 221,517 | 94,727 | ||||||||
General and administrative costs | 7,733 | 6,135 | 14,644 | 12,285 | ||||||||
Depreciation and amortization | 1,881 | 2,029 | 3,866 | 4,091 | ||||||||
Total operating costs | 98,445 | 56,886 | 240,027 | 111,103 | ||||||||
Income from operations | 10,254 | 4,620 | 21,473 | 8,255 | ||||||||
Interest expense, net | 554 | 1,004 | 1,226 | 2,084 | ||||||||
Income before income taxes | 9,700 | 3,616 | 20,247 | 6,171 | ||||||||
Income tax expense | 2,522 | 1,049 | 5,265 | 1,790 | ||||||||
Net income | $ | 7,178 | $ | 2,567 | $ | 14,982 | $ | 4,381 | ||||
Net income per share – basic | $ | 0.56 | $ | 0.20 | $ | 1.17 | $ | 0.35 | ||||
Net income per share – diluted | $ | 0.50 | $ | 0.19 | $ | 1.04 | $ | 0.32 | ||||
Weighted average common shares outstanding | ||||||||||||
Basic | 12,778 | 12,544 | 12,763 | 12,521 | ||||||||
Diluted | 14,442 | 13,570 | 14,368 | 13,568 | ||||||||
DLH HOLDINGS CORP.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except par value of shares)
March 31, 2022 |
September 30, 2021 |
|||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 359 | $ | 24,051 | ||||
Accounts receivable | 62,152 | 33,447 | ||||||
Other current assets | 3,599 | 4,265 | ||||||
Total current assets | 66,110 | 61,763 | ||||||
Equipment and improvements, net | 1,427 | 1,912 | ||||||
Operating lease right-of-use assets | 17,999 | 19,919 | ||||||
Goodwill | 65,643 | 65,643 | ||||||
Intangible assets, net | 44,177 | 47,469 | ||||||
Other long-term assets | 398 | 464 | ||||||
Total assets | $ | 195,754 | $ | 197,170 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Operating lease liabilities – current | $ | 2,216 | $ | 2,261 | ||||
Accrued payroll | 12,464 | 9,125 | ||||||
Deferred revenue | — | 22,273 | ||||||
Accounts payable, accrued expenses, and other current liabilities | 44,317 | 32,717 | ||||||
Total current liabilities | 58,997 | 66,376 | ||||||
Long-term liabilities: | ||||||||
Deferred taxes, net | 1,176 | 1,176 | ||||||
Operating lease liabilities – long-term | 17,582 | 19,374 | ||||||
Debt obligations – long-term, net of deferred financing costs | 35,638 | 44,636 | ||||||
Total long-term liabilities | 54,396 | 65,186 | ||||||
Total liabilities | 113,393 | 131,562 | ||||||
Shareholders’ equity: | ||||||||
Common stock, $0.001 par value; authorized 40,000 shares; issued and outstanding 12,794 and 12,714 at March 31, 2022 and September 30, 2021, respectively | 13 | 13 | ||||||
Additional paid-in capital | 89,664 | 87,893 | ||||||
Accumulated deficit | (7,316 | ) | (22,298 | ) | ||||
Total shareholders’ equity | 82,361 | 65,608 | ||||||
Total liabilities and shareholders’ equity | $ | 195,754 | $ | 197,170 | ||||
DLH HOLDINGS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(unaudited) | ||||||||
Six Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
Operating activities | ||||||||
Net income | $ | 14,982 | $ | 4,381 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 3,866 | 4,091 | ||||||
Amortization of deferred financing costs charged to interest expense | 319 | 413 | ||||||
Stock based compensation expense | 1,309 | 844 | ||||||
Deferred taxes, net | — | 1,512 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (28,705 | ) | (9,134 | ) | ||||
Other current assets | 666 | 30 | ||||||
Accrued payroll | 3,339 | 1,401 | ||||||
Deferred revenue | (22,273 | ) | — | |||||
Accounts payable, accrued expenses, and other current liabilities | 11,600 | 2,245 | ||||||
Other long-term assets and liabilities | 82 | 336 | ||||||
Net cash provided by (used in) operating activities | (14,815 | ) | 6,119 | |||||
Investing activities | ||||||||
Business acquisition adjustment, net of cash acquired | — | 59 | ||||||
Purchase of equipment and improvements | (89 | ) | (53 | ) | ||||
Net cash provided by (used in) investing activities | (89 | ) | 6 | |||||
Financing activities | ||||||||
Proceeds from debt obligations | 13,500 | 18,950 | ||||||
Repayment of debt obligations | (22,750 | ) | (26,200 | ) | ||||
Payment of deferred financing costs | — | (43 | ) | |||||
Proceeds from issuance of common stock upon exercise of options and warrants | 462 | 231 | ||||||
Net cash used in financing activities | (8,788 | ) | (7,062 | ) | ||||
Net change in cash | (23,692 | ) | (937 | ) | ||||
Cash at beginning of period | 24,051 | 1,357 | ||||||
Cash at end of period | $ | 359 | $ | 420 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid during the period for interest | $ | 896 | $ | 1,639 | ||||
Cash paid during the period for income taxes | $ | 3,482 | $ | 184 | ||||
Revenue Metrics
Six Months Ended | ||||||
March 31, | March 31, | |||||
2022 | 2021 | |||||
Market Mix: | ||||||
Defense/VA | 29 | % | 59 | % | ||
Human Services and Solutions | 57 | % | 14 | % | ||
Public Health/Life Sciences | 14 | % | 27 | % | ||
Contract Mix: | ||||||
Time and Materials | 84 | % | 76 | % | ||
Cost Reimbursable | 9 | % | 20 | % | ||
Firm Fixed Price | 7 | % | 4 | % | ||
Prime vs Sub: | ||||||
Prime | 94 | % | 89 | % | ||
Subcontractor | 6 | % | 11 | % | ||
Non-GAAP Financial Measures
The Company uses EBITDA and EBITDA as a percent of revenue as supplemental non-GAAP measures of performance. We define EBITDA as net income excluding (i) interest expense, (ii) provision for or benefit from income taxes and (iii) depreciation and amortization. EBITDA as a percent of revenue is EBITDA for the measurement period divided by revenue for the same period.
The Company is presenting additional non-GAAP measures to describe the impact from two short-term FEMA task orders’ on its financial performance for the three and six months periods ended March 31, 2022. The measures presented are revenue, operating income, net income, diluted earnings per share, and EBITDA for our enterprise contract portfolio less the respective performance on the FEMA task orders. These resulting measures present the remaining contract portfolio’s quarterly financial performance compared to results delivered in the prior year period. Definitions of these additional non-GAAP measures are set forth in the footnotes to the reconciliation table below.
These non-GAAP measures of performance are used by management to conduct and evaluate its business during its review of operating results for the periods presented. Management and the Company’s Board utilize these non-GAAP measures to make decisions about the use of the Company’s resources, analyze performance between periods, develop internal projections and measure management performance. We believe that these non-GAAP measures are useful to investors in evaluating the Company’s ongoing operating and financial results and understanding how such results compare with the Company’s historical performance.
Reconciliation of GAAP net income to EBITDA, a non-GAAP measure:
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||
(in thousands) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||
Net income | $ | 7,178 | $ | 2,567 | $ | 4,611 | $ | 14,982 | $ | 4,381 | $ | 10,601 | ||||||||||||
(i) Interest expense, net | 554 | 1,004 | (450 | ) | 1,226 | 2,084 | (858 | ) | ||||||||||||||||
(ii) Provision for taxes | 2,522 | 1,049 | 1,473 | 5,265 | 1,790 | 3,475 | ||||||||||||||||||
(iii) Depreciation and amortization | 1,881 | 2,029 | (148 | ) | 3,866 | 4,091 | (225 | ) | ||||||||||||||||
EBITDA | $ | 12,135 | $ | 6,649 | $ | 5,486 | $ | 25,339 | $ | 12,346 | $ | 12,993 | ||||||||||||
Net income as a % of revenue | 6.6 | % | 4.2 | % | 2.4 | % | 5.7 | % | 3.7 | % | 2.0 | % | ||||||||||||
EBITDA as a % of revenue | 11.2 | % | 10.8 | % | 0.4 | % | 9.7 | % | 10.3 | % | (0.6)% | |||||||||||||
Revenue | $ | 108,699 | $ | 61,506 | $ | 47,193 | $ | 261,500 | $ | 119,358 | $ | 142,142 | ||||||||||||
Reconciliation of GAAP revenue, operating income, net income, diluted earnings per share, and non-GAAP EBITDA reported for the three and six months ended to the same metrics for our contract portfolio less the FEMA task orders:
Three Months Ended | Six Months Ended | |||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||
( in thousands) | Ref | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||
Revenue | ||||||||||||||||||||
Total enterprise | $ | 108,699 | $ | 61,506 | $ | 47,193 | $ | 261,500 | $ | 119,358 | $ | 142,142 | ||||||||
Less: FEMA task orders to support Alaska | (a) | 39,764 | — | 39,764 | 130,889 | — | 130,889 | |||||||||||||
Remaining contract portfolio | (a) | $ | 68,935 | 61,506 | 7,429 | $ | 130,611 | $ | 119,358 | $ | 11,253 | |||||||||
Operating income | ||||||||||||||||||||
Total enterprise | $ | 10,254 | $ | 4,620 | $ | 5,634 | $ | 21,473 | $ | 8,255 | $ | 13,218 | ||||||||
Less: FEMA task orders to support Alaska | (b) | 5,525 | $ | — | $ | 5,525 | 11,871 | — | 11,871 | |||||||||||
Remaining contract portfolio | (b) | $ | 4,729 | $ | 4,620 | $ | 109 | $ | 9,602 | $ | 8,255 | $ | 1,347 | |||||||
Net income | ||||||||||||||||||||
Total enterprise | $ | 7,178 | $ | 2,567 | $ | 4,611 | $ | 14,982 | $ | 4,381 | $ | 10,601 | ||||||||
Less: FEMA task orders to support Alaska | (c) | 4,089 | — | 4,089 | 8,785 | — | 8,785 | |||||||||||||
Remaining contract portfolio | (c) | $ | 3,089 | $ | 2,567 | $ | 522 | $ | 6,197 | $ | 4,381 | $ | 1,816 | |||||||
Diluted earnings per share | ||||||||||||||||||||
Total enterprise | $ | 0.50 | $ | 0.19 | $ | 0.31 | $ | 1.04 | $ | 0.32 | $ | 0.72 | ||||||||
Less: FEMA task orders to support Alaska | (d) | 0.28 | — | 0.28 | 0.61 | — | 0.61 | |||||||||||||
Remaining contract portfolio | (d) | $ | 0.22 | $ | 0.19 | $ | 0.03 | $ | 0.43 | $ | 0.32 | $ | 0.11 | |||||||
EBITDA | ||||||||||||||||||||
Total enterprise | $ | 12,135 | $ | 6,649 | $ | 5,486 | $ | 25,339 | $ | 12,346 | $ | 12,993 | ||||||||
Less: FEMA task orders to support Alaska | (e) | 5,525 | — | 5,525 | 11,871 | — | 11,871 | |||||||||||||
Remaining contract portfolio | (e) | $ | 6,610 | $ | 6,649 | $ | (39 | ) | $ | 13,468 | $ | 12,346 | $ | 1,122 |
Ref (a): Revenue for the Company’s remaining contract portfolio less the FEMA task orders represents our consolidated revenues less the revenues generated from the FEMA task orders.
Ref (b): Operating income attributable to the remaining contract portfolio less the FEMA task orders represents the Company’s consolidated operating income, determined in accordance with GAAP, less the operating income derived from the FEMA task orders. Operating income for the FEMA task orders is derived by subtracting from the revenue attributable to such task orders during the three months ended March 31, 2022 of $39.8 million the following amounts attributable to the task orders: contract costs of $33.7 million and general & administrative costs of $0.6 million. Similarly, for the six months ended March 31, 2022 operating income for the FEMA task orders is derived by subtracting from the revenue attributable to the tasks orders of $130.9 million the following amounts attributable to the task orders: contract costs $117.9 million and general & administrative costs of $1.1 million. Operating income for the remaining contract portfolio for the three and six months ended March 31, 2022 represents the Company’s consolidated operating income for such period less the operating income attributable to the FEMA task orders for such period.
Ref (c): Net income attributable to the remaining contract portfolio less the FEMA task orders represents the Company’s consolidated net income, determined in accordance with GAAP, less the net income derived from the FEMA task orders. Net income for the FEMA task orders is derived by subtracting from the revenue attributable to such task orders during the three months ended March 31, 2022 of $39.8 million the following amounts attributable to the task orders: contract costs of $33.7 million, general & administrative costs of $0.6 million, and income tax expense of $1.4 million. Similarly, for the six months ended March 31, 2022 net income for the FEMA task orders is derived by subtracting from the revenue attributable to the tasks orders of $130.9 million the following amounts attributable to the task orders: contract costs $117.9 million, general & administrative costs of $1.1 million, and tax expense of $3.1 million. Net income for the remaining contract portfolio for the three and six months ended March 31, 2022 represents the Company’s consolidated net income for such period less the net income attributable to the FEMA task orders for such period.
Ref (d): Diluted earnings per share (diluted EPS) for the FEMA task orders is calculated using the net income attributable to such task orders as opposed to GAAP net income. Diluted EPS for the remaining contract portfolio (total contract portfolio excluding the FEMA task orders) is calculated by subtracting the diluted EPS for the FEMA task orders from the Company’s total diluted EPS.
Ref (e): EBITDA attributable to the FEMA tasks orders of $5.5 million and $11.9 million for the three and six months ended March 31, 2022, respectively, is arrived at through the same calculation as operating income as there are not any depreciation and amortization costs attributable to the FEMA tasks orders. EBITDA for the remaining contract portfolio is calculated by subtracting the EBITDA attributable to the FEMA task orders from the Company’s total EBITDA.
Artificial Intelligence
Actuators Market worth $94.8 billion by 2029 – Exclusive Report by MarketsandMarkets™
CHICAGO, March 29, 2024 /PRNewswire/ — The Actuators market is estimated at USD 67.7 billion in 2024 and is projected to reach USD 94.8 billion by 2029, at a CAGR of 7.0 % from 2024 to 2029 according to a new report by MarketsandMarkets™. The growth can be attributed to growing industrial automation and use of robots in various sectors like manufacturing and transportation, Developments in areas like sensor technology, connectivity, and control systems, The increasing demand for actuators is fueled by the expansion of sectors like healthcare (medical devices), oil & gas, and aerospace & defense, and the need for improved process control, energy efficiency, and safety regulations in various industries.
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Browse in-depth TOC on “Actuators Market” 300 – Tables175 – Figures350 – Pages
Actuators Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 67.7 billion
Estimated Value by 2029
$ 94.8 billion
Growth Rate
Poised to grow at a CAGR of 7.0%
Market Size Available for
2019–2028
Forecast Period
2023–2028
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By Actuation, Application, Type, Vertical, and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Issues of leakage in pneumatic and hydraulic actuators
Key Market Opportunities
Increased spending on renewable sources of energy for power generation
Key Market Drivers
Rapid industrialization and utilization of robotics
The Electric segment held the largest growth rate in the Actuators market by actuation.
By actuation, the Actuators market has been segmented into electric, hydraulic, pneumatic, and others. electric Segment to hold the highest growth rate during the forecast period. Electrical actuators use electricity to produce motion. These actuators can be further classified into solenoid actuators and motor-driven actuators. A solenoid used in an electric actuator works on the principle of electromagnetism. Electrical actuators provide control and acceleration at higher speeds. The force for applying thrust can be managed without the requirement for compressed air and the related infrastructure, and hence the total energy consumption in these actuators is lower. Electrical actuators can be used for various applications where linear as well as rotary actuation is required. They can be used for low torque as well as high torque requirements.
The vehicle equipment segment is expected to account for the largest share of Actuators by application in 2024.
By application, the Actuators industry is segmented into industrial automation, robotics, and vehicle equipment. The vehicles and equipment segment includes actuators used in automotive, aircraft, ships, and defense vehicles. These can be either hydraulic, pneumatic, electrical, or mechanical actuators. Actuators are widely used in various systems and sub-systems of an automobile, aircraft, ships as well as defense vehicles.
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Asia Pacific accounts for the largest market share in 2024.
The Actuators market has been studied in North America, Europe, Asia Pacific, Middle East, and Rest of the World. The Asia Pacific region accounts for the largest market share in 2024 as well as throughout the forecast period due to the increasing demand for actuators in the region to enhance the growth of the market. India is expected to show the highest growth rate in Asia Pacific Region for Actuators market.
Major players operating in the Actuators companies are SMC Corporation (Japan), Rockwell Automation (US), Curtiss-wright Corporation (US), ABB Ltd (Switzerland), and Parker Hennifin Corporation (US).
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Artificial Intelligence
Roborock Unveils Global No.1 Robotic Vacuum Cleaner Sales Ranking at International Launch Event
Certified by Euromonitor, Roborock attributes its rise to the top to embracing a long-term mindset while upholding customer-centric innovation above all else
BEIJING, March 29, 2024 /PRNewswire/ — Roborock, a global leader in ultra-intelligent home robotics engineered to simplify daily life, today announced it has taken the number one spot for robotic vacuum sales worldwide, according to new data by Euromonitor. Celebrating its achievements at a global launch event on the eve of its 10-year anniversary, the brand also revealed a glimpse of what is to come in the form of new product lines while sharing its vision for the future.
Founded in 2014, Roborock owes its success to its long-standing commitment to customer-centric innovation. By delivering meaningful solutions which improve everyday lives, Roborock has built a truly global fanbase, with Euromonitor data confirming that the brand has achieved the number 1 sales position worldwide for robotic vacuum cleaners[1].
“We are so honored to be celebrating this achievement with you all, which was made possible thanks to the ongoing trust and support received over the last 10 years.” Mr. Quan, Roborock President, announced, “Our path to success has been a marathon, not a sprint, as we have always kept in view our brand spirit of “taking the long view in order to do the right thing”. Our unwavering commitment to focusing on delivering true value to our customers is how we have built the brand affinity that has gotten us where we are today – firmly on our way to becoming a global leader in the smart home space.”
Steppingstones on the Path to Success: Roborock Achieves Steady Market Growth on Journey to Become a Global Leading Home Appliance Brand
Further cementing its global success story, the brand also revealed impressive results in many of its key markets. Roborock is now present in over 170 countries, serving over 15 million homes worldwide. According to data from IDC, Roborock ranks number one in Turkey and number two in the US in terms of sales, while also taking the top spot in Germany, Korea, and the Nordics in terms of shipments in 2023[2]. As revealed by Roborock’s latest Financial Earnings Report, the brand recorded a total revenue of 8.65 billion Yuan last year (US$1.22 billion), with total robot vacuum shipments surpassing 2.6 million units. Roborock’s overseas operation recorded revenue growth of 21.42% compared to the prior year and Roborock’s net profit was listed at 2.05 billion Yuan (US$288 million), achieving an overall annual growth rate of 73.32%. This consistent growth across all key markets demonstrates Roborock’s strategic choice to directly address consumer demands and striving for excellence across user experience is resonating with millions worldwide.
Despite these successes, Mr. Quan acknowledged these results were not in themselves the ultimate end goal. Globalization is a vital pillar of Roborock’s mission to become a leader in its field. As such, Roborock plans to expand its global footprint by introducing more innovative products that cater to the unique needs of global users, taking into account the different requirements of various markets, and extending more partnerships worldwide, ensuring that Roborock makes strides overseas on a larger scale and at a faster pace.
Meaningful Innovation: Roborock’s User-Centric R&D Principles and Latest Revolutionary Developments
Roborock’s passion to create value for its consumers propels them to continuously seek out new technological advancements that can serve real consumer pain points. From 2019 to 2023 Roborock invested 1.9 billion Yuan (260 million USD) in Research and Development. Roborock’s approach to take the long term view, ensures R&D teams are encouraged not to seek quick fixes, but to focus on innovation that will truly serve the needs of the end consumer, such as addressing key areas like cleaning capabilities, mapping and navigation, convenience and smart home interconnectivity.
Enhancing the cleaning capabilities of its latest range, Roborock has introduced the FlexiArm Design™ Side Brush, a stretching side brush delivering 100% corner cleaning coverage – elevating the user experience. When it comes to user satisfaction, delivering a low-maintenance, hands-free experience is also paramount. Roborock recently introduced an auto water refill and drainage system, which automatically emptying and replacing dirty water with clean water through pipes during mop washing and tank refilling.
Aside from advanced hardware solutions, Roborock has always invested heavily in the discovery and implementation of emerging technologies that can enhance the functionality and accessibility of its devices. Roborock’s Reactive AI 2.0 Obstacle Recognition technology can recognize and differentiate between floor and room types, accurately identifying 73 different obstacles to navigate, including floor mirrors and pet supplies. Roborock SmartPlanTM function uses an advanced AI algorithm to intelligently plan and optimize cleaning paths and settings based on user habits and specific home layout, making the cleaning process even more intelligent and efficient. The S8 MaxV Ultra is now certified by CSA for Matter, and other Roborock products will follow in the near future suit to enhance connectivity.
Enriching Roborock’s Product Portfolio to Enhance the Quality of Life for Consumers
Concluding the exciting launch, Roborock unveiled three exciting new product lines to its portfolio of intelligent automated devices. Roborock’s product managers took to the stage to introduce three new robotic vacuums – the G20S (S8 MaxV Ultra), V20 and P10S Pro.
The G20S (S8 MaxV Ultra) launched to great acclaim at CES 2024 and is Roborock’s most technologically advanced one-stop cleaning solution to date. A highly intuitive device, the G20S is equipped with FlexiArm Design™ Side Brush, a unique robotic arm that enables complete corner cleaning capabilities, and an extra side mop for edge cleaning, alongside Reactive AI 2.0 obstacle recognition, built-in intelligent voice assistant, and RockDock® Ultra which automatically maintains the robot cleaner using hot water and heated air with intelligent mop re-washing and re-mopping capabilities. The G20S (S8 MaxV Ultra) will be available to purchase globally from April, retailing for USD 1799.99 / EURO 1499.
Initially debuting in China, the V20 will be the world’s first robotic vacuum cleaner equipped with dual-vision 3DToF solid-state LiDAR navigation and obstacle avoidance system, which observes the reflection of modulated light to offer better depth accuracy for even more intuitive floor mapping. With an ultra-thin 8.2cm body and equipped with FlexiArm DesignTM corner and edge cleaning, DuoRoller Riser Brush, and maintenance-free cleaning dock, the V20 is set to redefine automated, low maintenance cleaning.
Finally, the P10S Pro is positioned as the perfect partner for those hard-to-reach spots. Combining FlexiArm DesignTM with an extendable side brush and mop, the device provides 100% corner coverage and the ultimate in edge-cleaning, taking even the trickiest surfaces in its stride.
These solutions further solidify Roborock’s commitment to satisfying the needs of its customers in its fearless pursuit of innovation. Stay tuned for further market specific launch announcements of these innovations and more.
About Roborock
Roborock is committed to innovation in researching, developing, and producing home cleaning devices, particularly robotic, cordless, and wet/ dry vacuum cleaners. Every Roborock product has been designed with an eye on solving genuine problems, so Roborock customers can live better lives. Currently, Roborock is available in more than 40 countries, including the U.S., Germany, France, and Spain. The company operates out of four locations, with offices in Beijing, Shanghai, Shenzhen, and Hong Kong. For more information visit https://global.roborock.com/.
[1] The data comes from Euromonitor International (Shanghai) Co., Ltd. The sales figures of robotic vacuum cleaners worldwide in the first three quarters of 2023 (in RMB hundred million) were used for calculation. Roborock ranks first in the industry. Robotic vacuum cleaner refers to vacuum cleaners that automatically move around rooms using sensors to clean floors. The research was completed in February 2024.
[2] Data based on IDC Quarterly Smart Home Device Tracker, 2023 Q4. Rankings for the US and Turkey are based on sales value, while rankings for Germany, the Nordic countries (Denmark, Finland, Norway, Sweden), and Korea are based on shipment volume
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Artificial Intelligence
Cato Shatters SASE Speed Record
Cato doubles throughput without any hardware upgrades, underscoring the value of a fully cloud-native platform.
TOKYO, March 29, 2024 /PRNewswire/ — Cato Networks, the SASE leader, announced a new SASE throughput record here at the Porsche Studio Ginza ahead of the 2024 Tokyo E-Prix, achieving 10 Gbps without hardware upgrades. At 10 Gbps, Cato became the first SASE platform to compete not only in the ABB FIA Formula E World Championship but also to deliver SASE performance so powerful that the TAG Heuer Porsche Formula E Team could transfer all the data of an entire Formula E season in under 2.5 hours instead of 3.5 days.
“We’re very excited to be partnering with the TAG Heuer Porsche Formula E Team at the 2024 Tokyo E-Prix,” says Shlomo Kramer, CEO and co-founder of Cato Networks. “The incredible speeds of the Gen3 racecars are only matched by the unprecedented throughput of Cato SASE Cloud. With 10 Gbps, we enable enterprises to replace their data center firewalls and enjoy all the benefits of a true, cloud-native SASE platform.”
Cato SASE Speed Record Up to 3x Other SASE Solutions on the Grid
As SASE continues its upmarket movement, higher capacity connections become essential for meeting various business needs such as bandwidth-intensive applications (cloud storage and backup, disaster recovery), hybrid clouds connecting two parts of the data center for inter-application processing, and large campuses.
To meet those challenges, Cato is introducing 10 Gbps throughput on a single, encrypted tunnel. The doubling of Cato Cloud Interconnect and Cato Socket performance comes without costly hardware upgrades, typical of appliance-based architectures. Compute-intensive operations that usually degrade edge appliance performance — packet encryption/decryption, security inspection, and the like — are handled by multiple Cato Single Pass Processing Engine (SPACE) cores, concurrently processing real-time traffic within Cato PoPs (Points of Presence). Parallel network flow processing is also enabled within the Cato Socket to maximize throughput end-to-end.
By contrast, SASE solutions implemented as virtual machines (VMs) in the cloud or modified web proxies remain limited to under 2 Gbps of throughput for a single tunnel. Appliance-based SASE
solutions top out at just under 3 Gbps. The lower throughputs force enterprises to artificially split traffic within locations across multiple tunnels from the edge appliance to the SASE PoP, a layer of complexity and risk that does not exist in Cato SASE Cloud.
Tokyo: A Place for Fast Cars and Fast Networks
The 2024 Tokyo E-Prix is the perfect venue to highlight Cato’s breakthrough performance. In the fast-paced world of Formula E, every second counts. The sport is intensively data-driven, where teams rely on their IT networks to analyze data and make critical, split-second strategy decisions to achieve a winning edge. Multiple computers in the car produce 100 to 500 billion data points per event, with more than 400 gigabytes of data generated and sent back to the cloud for analysis.
With 16 E-Prix this season, many in regions lacking Tokyo’s developed infrastructure, the ABB FIA Formula E Word Championship presents an incredible networking and security stress test. Cato SASE Cloud provides fast, secure, and reliable access to the TAG Heuer Porsche Formula E Team, regardless of location.
Tokyo, Osaka, and soon Sapporo form the three PoP locations within Japan. Within Tokyo, three Cato PoPs service the region; another two PoPs service Osaka. A sixth PoP is opening in Sapporo. Should users or locations lose access to any one PoP, they would immediately fail over to one of the other PoPs in Japan, providing the TAG Heuer Porsche Formula E Team and all Cato customers with incredibly reliable access in Tokyo – and across the globe.
To learn more about Cato SASE Cloud, visit us at https://www.catonetworks.com/platform/
To learn more about Cato’s partnership with the TAG Heuer Porsche Formula E Team, visit us at https://www.catonetworks.com/porsche-formula-e-team/.
About Cato Networks
Cato Networks is the leader in SASE, delivering enterprise security and networking in a single cloud platform. With Cato, organizations replace costly and rigid legacy infrastructure with an open and modular SASE architecture based on SD-WAN, a purpose-built global cloud network, and an embedded cloud-native security stack.
Want to learn why thousands of organizations secure their future with Cato? Visit us at www.catonetworks.com.
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