Allient Inc (NASDAQ:ALNT), a $393.5 million market cap company specializing in the measurement and testing of electricity and electric signals, has revealed an amendment to the employment agreement of one of its key executives. According to InvestingPro data, the company maintains a strong financial health score of "GOOD" with liquid assets exceeding short-term obligations.
On Monday, Heidrive GmbH, a wholly-owned subsidiary of Allient, and Helmut D. Pirthauer, Vice President and Group President, finalized a Third Amendment to Pirthauer's Managing Director’s Contract of Employment.
The amendment, effective as of December 18, 2024, extends Pirthauer's employment agreement until December 31, 2027, unless terminated earlier. According to the filing, Pirthauer's annual base salary will see a progressive increase over the next four years, starting at €325,000 for 2024, €360,000 for 2025, €408,000 for 2026, and finally €432,000 for 2027.
Additionally, the target annual cash incentive bonus for Pirthauer is set at €126,000 for 2024. For the subsequent years, the target bonus will be a percentage of his annual base salary—40% for 2025, and 45% for both 2026 and 2027.
The details of the amendment were summarized in the 8-K filing with the Securities and Exchange Commission (SEC) and will be provided in full in the company's Annual Report on Form 10-K for the year ended December 31, 2024. This adjustment in executive compensation comes as part of Allient's contractual arrangements with its senior management team. With annual revenue of $549 million and a current ratio of 4.1, InvestingPro analysis suggests the company is currently undervalued, with analyst price targets ranging from $28 to $30.
Allient Inc, formerly known as Allied Motion Technologies (NASDAQ:ALNT) Inc, has undergone several name changes in its history, with previous incarnations including Hathaway Corp and Hathaway Instruments Inc. The company is incorporated in Colorado and has its principal executive offices in Amherst, New York.
The information disclosed is based on the company's recent SEC filing and provides investors with updated details on Allient's executive compensation arrangements. For a comprehensive analysis of Allient's financial health, valuation metrics, and additional ProTips, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Allient Inc. has launched a defense-focused business unit, Allient Defense Solutions (ADS), as part of its strategy to penetrate high-growth markets and enhance value in the defense sector. The company has also undergone an internal restructuring to facilitate the new business unit's operations. These are among the recent developments at Allient.
Following the launch of ADS, Allient reported a decrease in revenue to $125 million in its Third Quarter Fiscal Year 2024 Earnings Call, marking a 14% decline from the previous year. Despite this, the company managed to increase its gross margin to 31.4%, generate $12 million in cash flow from operations, and reduce its debt by $5.5 million.
In an effort to combat these challenges, Allient has initiated cost reduction measures, notably the "Simplify to Accelerate NOW" program, projected to save the company $10 million annually. The company anticipates a slight revenue decline in Q4 due to seasonality and inventory rebalancing but remains optimistic about returning to stronger revenue levels by mid-2025.
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