CAMPBELL, Calif. - Velo3D, Inc. (NYSE: VLD), a prominent metal additive manufacturing firm, announced today that its board of directors has sanctioned a 1-for-35 reverse stock split. The action aims to meet the New York Stock Exchange’s minimum share price requirement for continued listing. The reverse stock split is expected to take effect when the market opens on Thursday, June 13, 2024, with shares trading on a split-adjusted basis under the ticker symbol "VLD".
The reverse stock split was authorized by the company’s shareholders on Monday and the final ratio was determined by the board on the same day. This corporate maneuver will not alter the number of authorized shares, which remains at 500 million, nor will it change the common stock's par value of $0.00001 per share.
Upon the implementation of the reverse split, every 35 shares of Velo3D’s common stock will be converted into one new share. The company’s outstanding shares will be reduced from approximately 297 million to about 8.5 million. Proportional adjustments will be made to the company's stock options, warrants, and equity-based awards.
Shareholders will not receive fractional shares as a result of the reverse split. Instead, they will be given one whole share of common stock in place of any fractional shares. The transfer agent for the reverse stock split, Continental Stock Transfer & Trust Company, will handle the conversion for shareholders who hold their shares electronically in book-entry form.
Those owning shares through banks, brokers, or other nominees will see their positions automatically adjusted to reflect the reverse stock split, by each broker's processes.
Velo3D, recognized for its metal 3D printing technologies, enables the production of mission-critical parts for industries such as space exploration, aviation, and energy. The company has been acknowledged as one of Fast Company’s Most Innovative Companies for 2023.
The information in this article is based on a press release statement from Velo3D.
In other recent news, Velo3D Corporation made notable strides in its financial performance. The company's first-quarter revenue for 2024 met its guidance, hitting $10 million, marking an upturn from the previous quarter. Despite reporting a negative gross margin of 29% for the quarter, Velo3D is positive about turning this around in the next quarter and achieving sustainable profitability by year-end.
The company also reported a GAAP net loss of $28.3 million and a non-GAAP net loss of $20.2 million for the quarter. However, they anticipate improvements in revenue, margin, and operating expenses throughout 2024. In line with these expectations, Velo3D is targeting over 30% sequential revenue growth in the second quarter and cash flow breakeven in the second half of 2024.
These recent developments indicate a focus on improving operating efficiency, margin, and cash flow. The company is confident in achieving these targets, projecting a full-year revenue between $80 million to $95 million. Furthermore, Velo3D has seen improvements in Q1 bookings, particularly from the defense, space, and aerospace sectors, which are expected to positively influence the company's performance throughout 2024.
InvestingPro Insights
In light of Velo3D's recent decision to undergo a reverse stock split, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Velo3D's market capitalization stands at $42.06M, reflecting the market's current valuation of the company. Additionally, the firm has been experiencing significant price volatility, with a 1-week price total return of -8.39% and a staggering 1-year price total return of -92.07%. This high level of price fluctuation is further evidenced by the company trading at only 5.68% of its 52-week high.
Moreover, the company's financials present challenges, as indicated by a negative gross profit margin of -52.22% over the last twelve months as of Q1 2024. These figures suggest that Velo3D is facing difficulties in generating sufficient revenue to cover its cost of goods sold, which is a critical aspect for the company's sustainability and growth prospects.
From the perspective of InvestingPro Tips, Velo3D operates with a significant debt burden and may have trouble making interest payments on debt, which is a crucial factor for investors to consider, especially in the context of the company's recent corporate action. Additionally, analysts have revised their earnings downwards for the upcoming period, indicating potential concerns about the company's future performance.
For investors seeking a deeper analysis, InvestingPro offers a suite of additional tips on Velo3D, which can provide more comprehensive insights into the company's financial health and market position. To access these insights and benefit from the full range of features, investors can use the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Velo3D's strategic moves, such as the reverse stock split, are essential for maintaining compliance with stock exchange regulations. However, investors are encouraged to consider the broader financial context provided by InvestingPro, which currently lists 16 additional tips for Velo3D, to make informed decisions regarding their investments in the company.
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