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Indie Posts Record Sales; Industry Challenges Seen

Indie Semiconductor Inc. says its annual revenue set a company record, but the Aliso Viejo-based firm is also running into the same “softness” affecting much of the automotive industry.

Indie (Nasdaq: INDI) said 2023 revenue more than doubled to $223.2 million compared with the year before.

The chip company focuses on energy-efficient technology for advanced driver assistance systems—often referred to as ADAS—while also developing software platforms for automotive use.

“For the first quarter of 2024, we expect Indie’s revenue to be up 38% year-over-year but down 20% sequentially, reflecting market seasonality and current industry softness,” Thomas Schiller, Indie’s chief financial officer, said in an earnings release on Feb. 22.

During a conference call with analysts, Chief Executive Donald McClymont underscored several obstacles Indie and other companies are facing: “rising interest rates, slowing in-market car sales, decelerating consumer transition to semiconductor content-rich electric vehicles, and inventory rebalancing across the automotive industry.”

McClymont also reiterated the ultimate goal for the various chips and sensors and safety checks and artificial intelligence being developed: the “uncrashable car.”

Indie’s shares have lost approximately 40% of their value over the last year and were trading at $5.93 apiece as of Feb. 23 for a market cap of $961 million.

PE Firm L Squared Furthers Component Consolidation

Tech-focused private equity firm L Squared Capital Partners has formed BTX Precision to continue accelerated consolidation in the North American precision components sector.

L Squared, based in Newport Beach, started the consolidation with the acquisition of ERA Industries of Elk Grove Village, Ill., followed by the acquisitions of Gen-El-Mec of Oxford, Conn., and i3DMFG of Redmond, Ore.

BTX is an integrated group of precision manufacturing organizations with a nationwide footprint spanning more than 175,000 square feet of state-of-the-art equipment and engineering, L Squared said in a statement on Feb. 20.

Its first buy, ERA Industries, is a provider of tight-tolerance machined components and assemblies for the aerospace, defense and medical sectors.

The leadership teams at each acquired entity within BTX have remained in place as both executives and ongoing owners of the new grouping in partnership with L Squared.

Aggressive Acquisition

“We’re excited to continue to build the BTX Precision platform via an aggressive acquisition campaign,” said Randall Hunt, partner at L Squared.

BTX represents a single source solution for high-quality, tight-tolerance components used in mission-critical applications in the aerospace, defense, medical, and semiconductor end markets, according to L Squared.

L Squared has over $2 billion of equity commitments under management.

The firm specializes in investments in education technology, tech-enabled services and software, and industrial technology and services.

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Sonia Chung
Sonia Chung
Sonia Chung joined the Orange County Business Journal in 2021 as their Marketing Creative Director. In her role she creates all visual content as it relates to the marketing needs for the sales and events teams. Her responsibilities include the creation of marketing materials for six annual corporate events, weekly print advertisements, sales flyers in correspondence to the editorial calendar, social media graphics, PowerPoint presentation decks, e-blasts, and maintains the online presence for Orange County Business Journal’s corporate events.

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