Back in September, Indie Semiconductor Inc.’s decision to temporarily reduce top executives’ salaries and lay off approximately 50 employees raised eyebrows about its future direction.
The picture looks brighter today.
The automobile chip company reported its strategic backlog jumped 13% to $7.1 billion – meaning there’s plenty of business on the way.
“We believe that the macro issues that had affected us in the last three or four quarters are largely behind us,” co-founder and CEO Donald McClymont told analysts in a conference call on Nov. 7 shortly after the earnings release.
“Based on our strategic backlog today, we would expect to achieve annual revenue of greater than $700 million in 2028.”
McClymont’s forecast implies annual sales will more than triple from $223.2 million in 2023.
In the following trading session, the stock shot up 60% to $5.48 (Nasdaq: INDI).
“With INDI pointing to improved solidity in customer program ramps, versus the prior period of delays, Indie’s overall business looks to be returning to more normalcy, as its revenue growth is once again expected to be driven by its own market share gains rather than the broader macro climate,” Benchmark analyst Cody Acree wrote in a note to investors.
He said Indie “bucks industry weakness & guides to growth.” He reiterated a “buy” rating on the stock with a $9 per share price target.
The shares were trading at $4.38 apiece for a market cap of $798 million as of Nov. 15. Like other OC tech companies, Indie Semi enjoyed an election bounce on Nov. 6 when its shares climbed 4.8% (see separate article).
Company Goal: ‘Uncrashable’ Car
The Aliso Viejo-based 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.
The “megatrends” are driver safety and automation; “in-cabin” user experience for drivers and passengers; and the increasing electrification of cars, according to Indie.
The many uses include traffic jam pilot, parking assist, obstacle detection, facial detection and radar. Indie Semiconductor’s chips aid infotainment systems, interior lighting, wireless charging and comfort functions, among others.
Indie’s long-term goal: clearing the way for the “uncrashable” car.
It has suffered setbacks, such as falling revenue. Its third-quarter revenue of $54 million was down 11% from the same period of 2023.
Notably, the company slashed more than half its operating loss, which was $49.9 million, down from $136.2 million a year ago.
“Profitability now seems possible” by the second half of 2025, Craig Ellis, a research director at B. Riley in Los Angeles wrote in a Nov. 8 note to clients.
Ellis is keeping an $11 price target for Indie’s stock, more than double the current price and has a “buy” rating on the shares.
The revenue declines are expected to continue in the short term. Indie projects fourth-quarter revenue of $58 million at the midpoint, which while a 17% drop from last year, it would also be in line with analysts’ estimates.
McClymont acknowledges that “the market is still choppy” and “we still see some uncertainty for the automotive market.”
Syntiant, Mobix Labs Broadcom
Indie, which went public in 2021, is one of a crowd of chip companies that have put Orange County on a key part of the tech map.
They include Irvine-based Syntiant, whose chips are used in artificial intelligence for audio, visual and sensing detection, and Mobix Labs, which makes chips for 5G, automotive and other applications. Chip behemoth Broadcom got its start in OC with Henry Samueli and Henry Nicholas.
Indie Semi Says Team in Aliso Viejo is “Right-Sized”
“We’re really pleased with the great team we have here in AV and are comfortable it is right-sized and with the core skillset we need to support the growth we project,” Chet Babla, senior vice president of Indie Semiconductor, told the Business Journal.
He said the company has more than 100 employees at its headquarters in Aliso Viejo while the total company headcount is over 900.
The company is led by Scotland-native Donald McClymont, who holds five worldwide patents.
OC Tech Stocks See Boost from Trump, Q3 Results
On Nov. 6, the day after President Donald Trump won re-election, the Dow Industrials, S&P 500 and Nasdaq Composite ended at record levels.
Four OC-based tech companies also saw their share prices notably increase as well, even before they reported third quarter results. Indie Semiconductor had a major breakthrough.
Here are the other three OC tech companies:
Clean Energy
Shares of Clean Energy Fuels Corp. climbed 4.8% on Nov. 6.
After regular trading ended that day, the Newport Beach provider of renewable natural gas reported third-quarter revenue climbed 9.7% to $104.9 million, beating analysts’ estimates.
Reflecting greater use, Clean Energy also said it sold 59.6 million gallons of RNG in the third quarter, up 5.1% from the same period a year earlier.
The incoming Trump administration will look favorably on renewable natural gas for trucks and buses, Chief Executive Andrew Littlefair told analysts.
While Trump himself has pushed traditional gasoline and diesel combustion engines, telling supporters his motto is “drill, baby, drill,” there are numerous alternatives for cars, trucks and buses, including electric power and hydrogen, to reduce pollution. Clean Energy believes its renewable natural gas (RNG) has a good chance.
“I have a level of comfort that RNG will continue to be seen as a rational alternative with the new administration and Congress,” Littlefair said.
He noted that Trump and his congressional allies have aimed their environmental policy criticism “at those that only support a single technology, electric vehicles.
“We believe that there will be strong support for emissions reductions, but that needs to be accomplished by market forces rather than government picking the technology,” the CEO said.
Littlefair noted there are various issues to be worked out on the tax credit and regulatory front.
Clean Energy Fuels procures and distributes RNG derived from the capture of methane gas from the decomposition of organic waste at dairies, other livestock sites and landfills.
Since Nov. 1, shares have risen 9.5% to $3.10 each and a $693 million market cap.
Virgin Galactic
Space tourism company Virgin Galactic Holdings Inc. (NYSE: SPCE) on Nov. 6 increased 3.5% to $7.12 each.
After the close that day, it reported third-quarter revenue of $400,000, less than analysts’ average estimate of $2.2 million.
The Tustin-based company also reported a narrower EBITDA loss of $59 million, down from the $87 million comparable loss in the same period last year.
The company reported it still has $744 million in cash and equivalents.
Virgin Galactic reiterated it plans to restart commercial service with its new Delta class spaceships in 2026.
“Our spaceship program remains on track to begin commercial operations in 2026,” CEO Michael Colglazier said in a statement.
Shares were volatile after the results, falling 12% on Nov. 7 to $6.28 only to rise 21% on Nov. 11 to $7.55 and a $218 million market cap.
Ducommun
The shares of Costa Mesa-based Ducommun Inc. shot up 6.5% on Nov. 6.
The following day, the aerospace and defense component maker reported third-quarter revenue rose 2.6% to $201.4 million – the first time the company’s quarterly revenue exceeded $200 million.
It said its adjusted profit climbed 44% to $14.8 million. Both revenue and adjusted earnings per share of 99 cents topped analysts’ estimates, sending the shares higher.
“Q3 was another outstanding quarter for DCO as we once again grew our topline both year-over-year and sequentially, led by strength in both of our Military and Commercial Aerospace segments along with strong quarterly gross margins and Adjusted EBITDA margins,” CEO Stephen Oswald said in a statement.
For the first seven trading sessions in November, the shares climbed 18% to $69.18 and a more than $1 billion market cap. The stock is up about 46% from its 52-week low in April.
