Palladyne AI Corp. (PDYN): restructuring charge — Sarcos pivots to AI software, cuts 70% workforce, Q3 revenue falls 62%

Palladyne AI Corp.

Q3 revenue $1.8M vs $4.7M YoY; net loss $29M ($1.13/share); non-GAAP net loss $17M.
Business pivot to AI/ML software; suspending hardware commercialization for subsea, aviation, solar.
Reducing headcount by ~150 (70%); expects $22-24M restructuring costs in Q4 2023/Q1 2024.
Cash, equivalents, marketable securities $55.1M; expects $39M by year-end; cash burn ~$1.6M/month in 2024.
Already incurred $5.7M impairment in Q3 from write-down of inventory and other assets.

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.95

Palladyne AI Corp. reported the quarter ended September 30, 2023 results: revenue $1.8 million, net income $29.0 million or $1.13 per share, EPS $1.13 per share.

Period: the quarter ended September 30, 2023
Revenue: $1.8 million
Net income: $29.0 million or $1.13 per share
EPS: $1.13 per share
Result: reported results

Exact text from the filing

Third quarter 2023 total revenue was $1.8 million, compared to $4.7 million during the third quarter of 2022.

View on SEC.gov

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Palladyne AI Corp. announced a restructuring with charges of up to approximately $4 million affecting workforce reduction (approximately 150 employees, representing approximately 70% of the Company’s workforce).

Type: restructuring
Charge: up to approximately $4 million
Affected area: workforce reduction
Headcount: approximately 150 employees, representing approximately 70% of the Company’s workforce

Exact text from the filing

On November 10, 2023, the Company’s board of directors (the “Board”) determined to pivot the Company’s business to focus on its artificial intelligence/machine learning software platform. In connection with this change in business strategy, the Company will carry out a reduction in force affecting approximately 150 employees, representing approximately 70% of the Company’s workforce. In connection with the reduction in force, the Company currently estimates it will incur up to approximately $4 million of costs

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Palladyne AI Corp. announced a restructuring with charges of $22 million to $24 million affecting restructuring including accelerated amortization of intangible and other assets.

Type: restructuring
Charge: $22 million to $24 million
Affected area: restructuring including accelerated amortization of intangible and other assets

Exact text from the filing

The Company anticipates incurring additional charges related to the restructuring in the range of approximately $22 million to $24 million during the fourth quarter of 2023 and the first quarter of 2024, which includes the $4 million in salaries, wages, severance and benefit payments noted above. The remainder will be non-cash expenses related to expected accelerated amortization of intangible and other assets due to the strategic shift initiated during the fourth quarter.

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Palladyne AI Corp. announced a impairment with charges of $5.7 million affecting inventory and other current assets.

Type: impairment
Charge: $5.7 million
Affected area: inventory and other current assets

Exact text from the filing

The Company has incurred impairment charges of $5.7 million during the three months ended September 30, 2023 in connection with the streamlining of the organization and business, including $5.2 million due to the write-down of inventory and $0.5 million related to the impairment of other current assets.

View on SEC.gov

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Source: SEC EDGAR

accession 0000950170-23-063721

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