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  • MIL-OSI Security: Guatemalan National Charged with Transportation, Distribution, and Possession of Child Pornography

    Source: Office of United States Attorneys

    OKLAHOMA CITY – A federal complaint has been unsealed charging GUSTAVO GORDILLO, 41, of Guatemala, with transportation, distribution, and possession of child pornography, announced U.S. Attorney Robert J. Troester.

    According to an affidavit filed in support of a criminal complaint, in July 2020, investigators with the Oklahoma City Police Department (OCPD) received a cyber tip after files containing child sexual abuse material (CSAM) were uploaded to a Google Photos account. The affidavit alleges that the suspect who uploaded the photos, later determined to be Gordillo, lived in Oklahoma City. OCPD detectives investigated the tip, as well as additional tips from Facebook, and learned that Gordillo had communicated with a child living out of state. The affidavit further alleges Gordillo provided CSAM to and received CSAM from the child. In December 2024, additional investigation led law enforcement to a residence in the Oklahoma City metro that was connected with Gordillo. Gordillo was charged by Complaint on January 27, 2025, and was arrested by Homeland Security Investigations (HSI) and OCPD on January 29, 2025.

    Public records show Gordillo had entered into the United States on a temporary visa that had expired.

    If found guilty as charged in the Complaint, Gordillo faces up to sixty years in federal prison. The public is reminded these charges are merely allegations, and that Gordillo is presumed innocent unless and until proven guilty beyond a reasonable doubt.

    This case is the result of an investigation by HSI and OCPD. Assistant U.S. Attorney Tiffany Edgmon is prosecuting the case.

    Reference is made to public filings for additional information.

    MIL Security OSI –

  • MIL-OSI Security: Palm Bay Man Sentenced To More Than 11 Years In Federal Prison For Receipt Of Child Sex Abuse Material

    Source: Office of United States Attorneys

    Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Erik Bjorndal (49, Palm Bay) to 11 years and 4 months in federal prison for receipt of child sexual abuse material (CSAM). Bjorndal previously pled guilty on August 21, 2024.

    According to court documents, Bjorndal downloaded multiple videos depicting the violent sexual abuse of children. Some of the videos included sadistic and masochistic conduct and bestiality. Thereafter, the FBI executed a search warrant at Bjorndal’s home and discovered hundreds of CSAM images on his devices. During an interview with FBI agents, Bjorndal admitted to viewing CSAM for “a while,” perhaps since his late 20s.

    This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Noah P. Dorman.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

    MIL Security OSI –

  • MIL-OSI Video: Secretary Rubio holds a press availability with Guatemalan President Bernardo Arevalo

    Source: United States of America – Department of State (video statements)

    Secretary of State Marco A. Rubio holds a press availability with Guatemalan President Bernardo Arevalo in Guatemala City, Guatemala, on February 5, 2025.

    ———-
    Under the leadership of the President and Secretary of State, the U.S. Department of State leads America’s foreign policy through diplomacy, advocacy, and assistance by advancing the interests of the American people, their safety and economic prosperity. On behalf of the American people we promote and demonstrate democratic values and advance a free, peaceful, and prosperous world.

    The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

    Get updates from the U.S. Department of State at www.state.gov and on social media!
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    Subscribe to the State Department Blog: https://www.state.gov/blogs
    Watch on-demand State Department videos: https://video.state.gov/
    Subscribe to The Week at State e-newsletter: http://ow.ly/diiN30ro7Cw

    State Department website: https://www.state.gov/
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    #StateDepartment #DepartmentofState #Diplomacy

    https://www.youtube.com/watch?v=h3q8CAubhwg

    MIL OSI Video –

  • MIL-OSI USA: Commerce Committee Advances Capito-Backed Bills, Lutnick Nomination

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito

    WASHINGTON, D.C. – U.S. Senator Shelley Moore Capito (R-W.Va.), a member of the Senate Commerce, Science, and Transportation Committee, today voted during a committee markup to advance the nomination of Howard Lutnick to serve as Secretary of Commerce. She also voted to advance several pieces of legislation, including the Rural Broadband Protection Act (RBPA), legislation Senator Capito authored to require a more thorough vetting and verification process for internet service providers (ISP) seeking to participate in the Federal Communications Commission’s (FCC) high-cost programs. Learn more about RBPA here.

    Senator Capito also voted to advance all legislation considered at today’s markup, including several bills she cosponsored:

    The Lutnick nomination, RPBA, as well as the other Capito-backed legislation, now head to the full Senate for consideration.

    MIL OSI USA News –

  • MIL-OSI USA: Capito Votes to Confirm Scott Turner for HUD Secretary

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito

    WASHINGTON, D.C. – U.S. Senator Shelley Moore Capito (R-W.Va.) issued the following statement after voting to confirm Scott Turner to serve as the next Secretary of the U.S. Department of the Housing and Urban Development (HUD):

    “I have seen firsthand the skills Scott Turner brings to the table when it comes to targeted economic development initiatives. He has a wealth of knowledge, experience, and will respond to the individual challenges that each unique community faces in West Virginia and across America. I was proud to vote to confirm Scott to this position and look forward to working with him and the Trump administration to make sure the needs of West Virginia and rural America are met,” Senator Capito said.

    BACKGROUND:

    Senator Capito previously met with Turner in January to discuss his nomination and learn more about his vision to lead the department including his commitment to address responsiveness issues West Virginians have faced.

    In May 2019, Senator Capito welcomed Turner to Charleston, W.Va. for a series of roundtable discussions focused on economic development.

    MIL OSI USA News –

  • MIL-OSI USA: Barrasso Votes to Confirm Scott Turner as Secretary of Housing and Urban Development

    US Senate News:

    Source: United States Senator for Wyoming John Barrasso

    WASHINGTON, D.C. – U.S. Senator John Barrasso (R-Wyo.), Senate Majority Whip, today spoke on the Senate Floor prior to voting to confirm Scott Turner, President Donald J. Trump’s nominee for Secretary of Housing and Urban Development.

    Click HERE to watch Senator Barrasso’s remarks.

    Sen. Barrasso’s remarks as prepared:

    “The Senate will soon vote on the confirmation of Scott Turner to be the Secretary of Housing and Urban Development.

    “Scott grew up in Texas. He dreamed of a career in the National Football League. He achieved that dream and so much more.

    “He used his platform as a player to help others achieve their own dreams.

    “These leadership qualities are fundamental to who Scott is. They will serve him well as Secretary of Housing and Urban Development.

    “Scott also has extensive experience in state and federal governments.

    “After playing in the NFL, he served his community in the Texas legislature.

    “In 2019, Scott oversaw investments in Opportunity Zones under President Trump.

    “In that role, Scott secured more than $50 billion in private investments for over 8,700 economically-distressed communities.

    “These investments helped to revitalize forgotten communities.

    “Senator Tim Scott of South Carolina – the now-Chairman of the Banking Committee – created these Opportunity Zones in the Tax Cuts and Jobs Act of 2017.

    “Scott Turner was instrumental in their success. He is the right man to help restore opportunity now.

    “He will put his experience and his leadership skills to work for the American people.

    “I strongly support his nomination.”

    MIL OSI USA News –

  • MIL-OSI Russia: Materials for the Government meeting on February 6, 2025

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    The following issues are planned to be considered at the meeting:

    1. On the draft federal law “On Amendments to Articles 164 and 165 of Part Two of the Tax Code of the Russian Federation”

    The purpose of the bill is to ensure favorable tax conditions for the provision of services for the transportation (organization of transportation) of passengers and baggage on the high-speed railway Moscow – St. Petersburg.

     

    2. On the draft amendments of the Government of the Russian Federation to the draft federal law No. 782171-8 “On Amendments to the Federal Law “On State Pension Provision in the Russian Federation””

    The draft amendments provide, among other things, for changes to a number of legislative acts in terms of the assignment of disability pensions to citizens who served in volunteer formations, without an application, and the establishment of the period from which they are assigned, clarification of the types of pensions that are established for family members of deceased (dead) citizens who served in volunteer formations, when they exercise their right to receive two pensions simultaneously.

     

    3. On the allocation of budgetary appropriations from the reserve fund of the Government of the Russian Federation to the Ministry of Labor of Russia in 2025 for the provision of an interbudgetary transfer to the budget of the Pension and Social Insurance Fund of the Russian Federation

    The draft act provides subsidies to legal entities and individual entrepreneurs registered in the Belgorod, Bryansk and Kursk regions for partial compensation of expenses for paying for employees’ downtime for reasons beyond the control of the employer and employee.

     

    4. On the draft federal law “On Amendments to the Code of the Russian Federation on Administrative Offenses”

    The bill is aimed at strengthening administrative liability for violation of requirements for the protection of information, including restricted access information contained in information systems.

     

    5. On the draft federal law “On Amendments to the Federal Law “On Self-Propelled Machines and Other Types of Equipment””

    The bill was developed in order to improve the legal regulation of relations related to the state registration of special airport equipment intended for servicing aircraft and operational maintenance of airfields, and to ensure the possibility of such equipment leaving the territory of the airfield (airport) onto public roads.

     

    6. On amendments to the Resolution of the Government of the Russian Federation of July 30, 2004 No. 395 (in terms of amendments to the Regulation on the Ministry of Transport of the Russian Federation)

    The draft resolution grants the Russian Ministry of Transport the authority to regulate issues in the area of transport security.

     

    7. On the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation” (in terms of improving the regulatory framework in the sphere of state cadastral valuation)

    The draft law contains provisions on granting the public-law company Roscadastre (PLC) the authority to maintain the state cadastral valuation data fund and to establish requirements for sending to PLC the information and materials necessary for inclusion in the specified data fund.

     

    8. On the draft federal law “On Amendments to Article 4 of the Federal Law “On the Public-Law Company “Roskadastr” and Certain Legislative Acts of the Russian Federation”

    The draft law was developed in order to implement the instructions of the President of the Russian Federation regarding the adoption of measures aimed at increasing the efficiency of real estate management, reducing the number of land plots whose boundaries are not defined in accordance with the requirements established by law, by optimizing activities to resolve issues related to the registration of rights to real estate objects, determining the location of the boundaries of real estate objects, and correcting registry errors in the information in the Unified State Register of Real Estate on real estate objects.

     

    9. On the draft federal law “On Amendments to Article 3911 of the Land Code of the Russian Federation”

    The bill proposes to amend the Land Code of the Russian Federation in terms of including the urban development plan of a land plot in the documentation when holding an auction for the sale of a land plot in state or municipal ownership, or an auction for the right to conclude a lease agreement for a land plot in state or municipal ownership.

     

    10. On the draft federal law “On Amendments to Article 22 of the Federal Law “On Fire Safety” and Article 35 of the Federal Law “On Emergency Rescue Services and the Status of Rescuers””

    The bill was developed in order to improve the efficiency of the activities of rescuers (firefighters) and their leaders, to determine the conditions, causes, and factors that contributed to harm (damage) to other persons during emergency rescue operations and fire extinguishing, and to take measures aimed at improving the activities of emergency rescue services and ensuring fire safety.

     

    11. On the draft federal law “On Amendments to Article 3 of the Federal Law “On the Use of Atomic Energy””

    The purpose of the legislative changes is to extend the legal framework and principles for regulating relations arising from the use of atomic energy, as defined by Federal Law No. 170-FZ of November 21, 1995 “On the Use of Atomic Energy”, to designed and operating thermonuclear reactors and installations.

     

    Moscow, February 5, 2025

     

    The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Russia: Government meeting (2025, No. 3)

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    1. On the draft federal law “On Amendments to Articles 164 and 165 of Part Two of the Tax Code of the Russian Federation”

    The purpose of the bill is to ensure favorable tax conditions for the provision of services for the transportation (organization of transportation) of passengers and baggage on the high-speed railway Moscow – St. Petersburg.

     

    2. On the draft amendments of the Government of the Russian Federation to the draft federal law No. 782171-8 “On Amendments to the Federal Law “On State Pension Provision in the Russian Federation””

    The draft amendments provide, among other things, for changes to a number of legislative acts in terms of the assignment of disability pensions to citizens who served in volunteer formations, without an application, and the establishment of the period from which they are assigned, clarification of the types of pensions that are established for family members of deceased (dead) citizens who served in volunteer formations, when they exercise their right to receive two pensions simultaneously.

     

    3. On the allocation of budgetary appropriations to the Ministry of Labor of Russia in 2025 from the reserve fund of the Government of the Russian Federation for the provision of an interbudgetary transfer to the budget of the Pension and Social Insurance Fund of the Russian Federation

    The draft act provides subsidies to legal entities and individual entrepreneurs registered in the Belgorod, Bryansk and Kursk regions for partial compensation of expenses for paying for employees’ downtime for reasons beyond the control of the employer and employee.

     

    4. On the draft federal law “On Amendments to the Code of the Russian Federation on Administrative Offenses”

    The bill is aimed at strengthening administrative liability for violation of requirements for the protection of information, including restricted access information contained in information systems.

     

    5. On the draft federal law “On Amendments to the Federal Law “On Self-Propelled Machines and Other Types of Equipment””

    The bill was developed in order to improve the legal regulation of relations related to the state registration of special airport equipment intended for servicing aircraft and operational maintenance of airfields, and to ensure the possibility of such equipment leaving the territory of the airfield (airport) onto public roads.

     

    6. On amendments to the Resolution of the Government of the Russian Federation of July 30, 2004 No. 395 (in terms of amendments to the Regulation on the Ministry of Transport of the Russian Federation)

    The draft resolution grants the Russian Ministry of Transport the authority to regulate issues in the area of transport security.

     

    7. On the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation” (in terms of improving the regulatory framework in the sphere of state cadastral valuation)

    The draft law contains provisions on granting the public-law company Roscadastre (PLC) the authority to maintain the state cadastral valuation data fund and to establish requirements for sending to PLC the information and materials necessary for inclusion in the specified data fund.

     

    8. On the draft federal law “On Amendments to Article 4 of the Federal Law “On the Public-Law Company “Roskadastr” and Certain Legislative Acts of the Russian Federation”

    The draft law was developed in order to implement the instructions of the President of the Russian Federation regarding the adoption of measures aimed at increasing the efficiency of real estate management, reducing the number of land plots whose boundaries are not defined in accordance with the requirements established by law, by optimizing activities to resolve issues related to the registration of rights to real estate objects, determining the location of the boundaries of real estate objects, and correcting registry errors in the information in the Unified State Register of Real Estate on real estate objects.

     

    9. On the draft federal law “On Amendments to Article 3911 of the Land Code of the Russian Federation”

    The bill proposes to amend the Land Code of the Russian Federation in terms of including the urban development plan of a land plot in the documentation when holding an auction for the sale of a land plot in state or municipal ownership, or an auction for the right to conclude a lease agreement for a land plot in state or municipal ownership.

     

    10. On the draft federal law “On Amendments to Article 22 of the Federal Law “On Fire Safety” and Article 35 of the Federal Law “On Emergency Rescue Services and the Status of Rescuers””

    The bill was developed in order to improve the efficiency of the activities of rescuers (firefighters) and their leaders, to determine the conditions, causes, and factors that contributed to harm (damage) to other persons during emergency rescue operations and fire extinguishing, and to take measures aimed at improving the activities of emergency rescue services and ensuring fire safety.

     

    11. On the draft federal law “On Amendments to Article 3 of the Federal Law “On the Use of Atomic Energy””

    The purpose of the legislative changes is to extend the legal framework and principles for regulating relations arising from the use of atomic energy, as defined by Federal Law No. 170-FZ of November 21, 1995 “On the Use of Atomic Energy”, to designed and operating thermonuclear reactors and installations.

     

    Moscow, February 5, 2025

     

    The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Russia: IMF Executive Board Completes the First Review Under the Extended Credit Facility (ECF) Arrangement for Liberia

    Source: IMF – News in Russian

    February 5, 2025

    • The IMF Executive Board completed the first review of the 40-month arrangement under the Extended Credit Facility (ECF), enabling a disbursement of SDR 34.3 million (about US$46 million).
    • The ECF arrangement will support the economic reform agenda recently adopted by the authorities. To achieve this reform objective, the authorities have committed to creating fiscal space through domestic revenue mobilization and expenditure rationalization, addressing financial sector weaknesses, and tackling governance shortcomings.
    • Program performance has been broadly satisfactory, meeting most of the quantitative targets and implementing all structural reforms, although some with delays.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed the first review of the arrangement under the Extended Credit Facility (ECF)[1] for Liberia, allowing Liberia to draw SDR 34.3 million (equivalent to about 13.3 percent of quota or US$46 million), which will be used to strengthen Liberia’s international reserve position.

    Liberia’s economic growth has remained strong, with the real GDP growth expected to accelerate to 5.6 percent in 2025 from 4.8 percent in 2024. Inflation and exchange rate has remained stable, and the current account deficit has continued to narrow. The authorities have successfully restored fiscal discipline, which is key for maintaining macro-financial stability. The public debt-to-GDP ratio has started to fall, reflecting a sizable consolidation of the fiscal primary balance.

    Recent progress in mobilizing tax revenues, reining in recurrent spending, and anchoring financial stability is promising. The authorities’ commitment to modernize the taxation regime, including the adoption of the VAT, will play a crucial role in creating fiscal space for higher investments, while preserving debt sustainability.

    The authorities’ renewed commitments to urgently tackle issues in weak banks and improve governance in public institutions are encouraging. Addressing the large and persistent non-performing loans (NPLs) stock remains a priority to enhance financial stability.

    The Executive Board approved the authorities’ request for a waiver of nonobservance of the continuous performance criterion on the non-accumulation of external arrears based on its minor nature and adopted corrective actions.

    Following the Executive Board discussion, Mr. Bo Li, Deputy Managing Director, and Acting Chair, made the following statement:

    “The Liberian authorities are making good progress in implementing sound macroeconomic policies and structural reforms. The program is broadly on track, and the authorities’ efforts to enhance fiscal sustainability, rebuild international reserves, and address governance weaknesses within public institutions are gradually taking effect.

    “Efforts to strengthen fiscal sustainability and mitigate debt vulnerabilities should continue over the medium term. In line with these efforts, the approved budget for 2025 aims to improve revenue mobilization, while continuing to rationalize unproductive spending and safeguard priority spending. Medium-term fiscal reforms designed to enhance domestic revenue mobilization and improve public finance management will help create fiscal space to bolster public investment.

    “The authorities should press ahead with addressing weaknesses in the Central Bank of Liberia’s (CBL) governance. Swift implementation of the recommendations of the compliance and forensic audit reports, an update IMF safeguards assessment, and an independent legal review of its unconventional financial support to two small banks is critical. This will help restore the CBL’s credibility and strengthen its governance and independence.

    “Broader governance reforms are key to the success of the program and the country’s long-term development prospects. Strengthening the capacity of integrity institutions, enacting necessary amendments to anti-corruption legislation, and rigorously enforcing public laws and regulations are critical. The upcoming governance diagnostic study will be crucial in guiding broader governance reforms.

    “Strengthening banking sector supervision and the regulatory framework is important to address banking sector vulnerabilities. To this end, the adoption of the new Bank-Financial Institutions and Bank Financial Holding Companies Act should be expedited. Restructuring of a state-owned bank, along with measures to address weaknesses in two small, troubled banks, should be accelerated. 

    “The authorities are firmly committed to revitalizing the reform agenda to address the country’s development challenges and support sustainable and inclusive economic development. The successful implementation of the recently adopted National Development Strategy is critical in achieving these goals.”

    [1] Liberia: Request for a 40-Month Arrangement Under the Extended Credit Facility-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Liberia

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Tatiana Mossot

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/02/05/pr-2529-liberia-imf-completes-the-1st-review-under-the-ecf-arrangement

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Canada: Families will benefit from new child care spaces at Marysville Elementary school

    Source: Government of Canada regional news

    More families in Kimberley will have access to affordable, quality child care with 148 new child care spaces opening soon at Marysville Elementary school.

    “This new child care centre in Kimberley will benefit hard-working families and the whole community for years to come,” said Rohini Arora, B.C.’s parliamentary secretary for child care. “It is a great example of how we are working with community partners to build new child care centres where people need them most throughout B.C.”

    Construction of a new child care centre on school grounds was made possible by more than $8.8 million from the ChildCareBC New Spaces Fund. This fund is jointly supported by provincial investments and federal funding under the 2021-22 to 2025-26 Canada-British Columbia Canada-wide Early Learning and Child Care Agreement.

    “Everyone deserves access to affordable child care close to home. These new spots in Kimberley support our children’s well-being and help meet parents’ needs,” said Jenna Sudds, federal Minister of Families, Children and Social Development. “It’s a significant investment in our children’s future and the strength of our communities.”

    School districts throughout B.C. are partnering with the provincial government to create new child care spaces to help address the child care needs of families within their communities. Child care on school grounds makes life easier for families by requiring only one dropoff and pickup location, streamlining their daily routines, reducing stress and creating a smoother transition for children.

    “This project certainly represents an example of what can be accomplished through exemplary community collaboration,” said Aaron Callaghan, superintendent, Rocky Mountain School District. “Our heartfelt thanks go out to everyone involved in this undertaking, including the City of Kimberley and Columbia Basin Trust. We are especially grateful to our partner, Summit Community Services Society, whose expertise and dedication will now bring this facility to life, providing essential child care services for families in Kimberley.”

    Since 2018, ChildCareBC’s accelerated space creation programs have helped fund the creation of more than 40,000 new licensed child care spaces in B.C., with more than 23,000 of these operational. Funding the creation of new child care spaces is part of the Province’s ChildCareBC plan to build access to affordable, quality, inclusive child care as a core service families can rely on.

    Quote:

    Johnny Strilaeff, president and CEO, Columbia Basin Trust –

    “This new facility represents an incredible achievement for Marysville and the surrounding community, providing local families with greater access to high-quality child care. We are proud to have partnered with Rocky Mountain School District, Summit Community Services Society, the City of Kimberley and the Province to make this project a reality. Supporting projects like this not only helps families thrive, but also strengthens the foundation of our communities across the basin.”

    Learn More:

    For more information about ChildCareBC, visit: www.gov.bc.ca/childcare

    More information about the ChildCareBC New Spaces Fund is available here: www.gov.bc.ca/childcare/newspacesfund

    For more information about the Canada-British Columbia Canada-wide Early Learning and Child Care Agreement, visit:
    https://www.canada.ca/en/early-learning-child-care-agreement/agreements-provinces-territories/british-columbia-canada-wide-2021.html

    MIL OSI Canada News –

  • MIL-OSI USA: B-1B Lancers conduct training mission in support of BTF 25-1

    Source: United States Air Force

    Headline: B-1B Lancers conduct training mission in support of BTF 25-1

    B-1B Lancers assigned to the 34th Expeditionary Bomb Squadron participated in support of Bomber Task Force 25-1, at Andersen Air force Base, Guam, Feb. 4. BTF missions demonstrate lethality and interoperability in support of a free and open Indo-Pacific.

    MIL OSI USA News –

  • MIL-OSI Security: Honduran Man Pleads Guilty to Immigration Crime

    Source: Office of United States Attorneys

    BECKLEY, W.Va. – Nolvin Alfredo-Diaz, also known as “Alfredo Diaz” and “Nolvin Alfredo Diaz,” 42, a Honduran national, pleaded guilty today to reentry of a removed alien.

    According to court documents and statements made in court, on August 21, 2024, U.S. Immigration and Customs Enforcement (ICE) agents arrested Alfredo-Diaz in Lewisburg. Alfredo-Diaz admitted that he was a citizen of Honduras in the United States illegally and that he had previously been deported from the United States. Alfredo-Diaz had no identification documents permitting him legal status in the United States.

    Fingerprints matched Alfredo-Diaz to two prior removals from the United States to Honduras. On December 27, 2006, Alfredo-Diaz was removed from the United States to Honduras following his felony conviction for controlled substance-possession Schedule I, to wit, heroin, in Denver County, Colorado, District Court on September 25, 2006. On September 6, 2007, Alfredo-Diaz was found in Denver, Colorado, and convicted of controlled substance-possession Schedule II, to wit, cocaine, in Denver County, Colorado, District Court on December 20, 2007. On July 21, 2010, Alfredo-Diaz was found in Canon City, Colorado, and was removed from the United States to Honduras on August 5, 2010.

    Alfredo-Diaz never obtained the express consent of the Secretary of U.S. Homeland Security to reapply for admission to the United States for either of the prior removals, nor did he seek to reenter the United States through other legal means.

    Alfredo-Diaz is scheduled to be sentenced on May 29, 2025, and faces a maximum penalty of 10 years in prison and up to three years of supervised release. Alfredo-Diaz will be subject to deportation proceedings at the conclusion of any sentence.

    “This federal criminal case underscores our office’s commitment to pursuing illegal reentry cases, especially in circumstances where the offender has a criminal history,” said United States Attorney Will Thompson. “Here, Mr. Diaz has two felony convictions for drug offenses and has been removed from the United States on multiple occasions. This will be Mr. Diaz’s third felony conviction. Our office will diligently and aggressively pursue these types of immigration cases.”

    Thompson made the announcement and commended the investigative work of U.S. Immigration and Customs Enforcement (ICE).

    United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Erik S. Goes is prosecuting the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-146.

    ###

     

    MIL Security OSI –

  • MIL-OSI Security: Michigan man sentenced to 20 years in prison for traveling to sexually abuse a minor who he removed from home in Washington and took back to Michigan

    Source: Office of United States Attorneys

    Seattle – A 31-year-old South Haven, Michigan, man was sentenced today in U.S. District Court in Seattle to 20-years in prison for traveling with intent to engage in a sexual act with a minor and enticement of a minor, announced U.S. Attorney Tessa M. Gorman. Keith Daniel Freerksen was arrested in South Haven Township on January 31, 2024, following an investigation that stretched from western Washington to Michigan.

    At the sentencing hearing U.S. District Judge Tana Lin noted the trauma inflicted on the victim and the victim’s family. For 30 days they searched for the victim, even calling every morgue in Washington State with fear their child was dead. Judge Lin said the victim, “Will continue to suffer trauma and pain.”

    “What happened in this case is every parent’s nightmare – a predator comes into the home via social media and computer screens and manipulates your child to run away,” said U.S. Attorney Tessa M. Gorman. “This defendant secreted a child away, leaving a distraught family searching desperately for their loved one. When the victim should have been involved in normal teenage activities, the teen was instead manipulated and ensnared by the defendant.”

    According to records filed in the case, the 14-year-old went missing on January 5, 2024. A local police detective requested help from the FBI. An agent who specializes in Violent Crimes Against Children and Human Trafficking investigations occurring in Snohomish, Skagit, Whatcom, Island, and San Juan counties quickly assisted.

    By analyzing information on Uber rides that had been purchased for the victim by an unknown person, law enforcement was able to identify Freerksen, a registered sex offender in Michigan, as a potential suspect. Using information on Freerksen’s registered vehicle, they were able to trace his movement across the northern tier of states using license plate readers. The readers also captured Freerksen’s return trip through Idaho and Illinois in the days after the teen went missing.

    When the police in South Haven Township served a search warrant at the request of the FBI, they recovered the victim and arrested Freerksen. He was ultimately transported to Western Washington and has been detained at the Federal Detention Center at SeaTac.

    In asking for the 20-year sentence Assistant United States Attorney Cecelia Gregson wrote to the court, “It is very alarming that neither of Freerksen’s family members intervened when he returned home with the then fourteen-year-old victim in tow. Freerksen was undeterred by his previous sex offense conviction, corresponding imprisonment, and registration obligation. The rapid recidivism between Freerksen’s release from prison following child pornography offenses and the dedicated months he spent manipulating and enticing (the victim) is evidence he is either unwilling or unable to refrain from sexually abusing minors.”

    The victim’s parents thanked law enforcement for finding and rescuing their child. The victim’s mother said, “I never imagined a predator would travel across the country to steal (my child).”

    The twenty-year sentence will run concurrent with a fifteen-to-seventy-year indeterminate state sentence in Michigan. Freerksen will serve his time in the federal prison system. Judge Lin ordered twenty years of supervised release to follow prison. Freerksen will once again have to register as a sex offender.

    The case was investigated by the Mount Vernon Police Department, FBI Seattle, and the Van Buren County, Michigan Sheriff’s Office and Prosecuting Attorney’s Office.

    The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

    MIL Security OSI –

  • MIL-OSI Security: Carrizo Springs Business Owner Indicted for 7 Counts of Tax Fraud

    Source: Office of United States Attorneys

    SAN ANTONIO – A federal grand jury in San Antonio returned an indictment charging a Carrizo Springs man with seven counts of failure to account for and pay over withholding taxes.

    According to court documents, Mark Douglass Plocek, 60, handled the day-to-day operations, including payroll, as an owner, operator and vice president of Production Lease Operating Services Oil & Gas Services LP (PLOS). The indictment alleges that, from the second quarter of 2016 through the third quarter of 2019, Plocek used PLOS to make hundreds of thousands of dollars for his personal benefit while, at the same time, failing to truthfully account for and pay over to the IRS payroll tax withheld from PLOS’s employees’ paychecks. Plocek allegedly spent hundreds of thousands of dollars on discretionary living expenditures including but not limited to gambling, purchasing real estate and investing in an unrelated restaurant business.

    Plocek made his initial court appearance today before U.S. Magistrate Judge Richard B. Farrer of the U.S. District Court for the Western District of Texas. If convicted, he faces up to five years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

    IRS Criminal Investigation is investigating the case.

    Assistant U.S. Attorney William Harris is prosecuting the case.

    An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    ###

    MIL Security OSI –

  • MIL-OSI Security: International Arms Dealer Charged with Exporting U.S. Firearms to Russia

    Source: Office of United States Attorneys

    Defendant Unlawfully Exported Semi-Automatic Rifle-Pistols from U.S. Company Through JFK International Airport

    Earlier today, an indictment was filed in federal court in Brooklyn charging Sergei Zharnovnikov, an arms dealer and citizen of Kyrgyzstan, with conspiring to export firearms from the United States to Russia without the necessary licenses and with illegal smuggling.  Zharnovnikov traveled from Kyrgyzstan to the United States last month and was arrested on January 24, 2025 in Las Vegas, Nevada, where he was attending the Shooting, Hunting, and Outdoor Trade (SHOT) Show to meet with U.S. arms dealers.  Zharnovnikov has been detained pending trial and will be arraigned in the Eastern District of New York at a later date.

    John J. Durham, United States Attorney for the Eastern District of New York, Devin DeBacker, head of the Justice Department’s National Security Division, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (BIS-OEE), announced the arrest and charges.

    “As alleged, the defendant operated a sophisticated scheme to circumvent export controls and to export semi-automatic firearms and send them to Russia,” stated United States Attorney Durham.  “Today’s indictment sends a message to the world that we will vigorously enforce statutes that control and restrict the export of items that could be detrimental to the foreign policy or national security of the United States, in this case, preventing U.S.-made firearms from getting into the wrong hands.”

    Mr. Durham thanked the U.S. Attorney’s Office for the District of Nevada for its assistance with the case.

    “Violations of export control laws carry significant consequences for perpetrators in the U.S. and abroad,” said DeBacker, head of the Justice Department’s National Security Division.  “The Department of Justice is committed to working with our partners to hold accountable those who violate our laws to smuggle firearms to prohibited destinations such as Russia.”

    “Attempting to illegally sell arms to Russia using multiple companies may seem like a method to evade United States sanctions, it is however a definite way to end up under arrest.  Sergei Zharnovnikov is alleged to have knowingly conspired with others to violate the export control laws of the United States to provide U.S made firearms to Russian companies.  The FBI will continue to enforce the export control laws enacted to safeguard our national security.”

    “The Bureau of Industry and Security is committed to aggressively investigating the illegal transshipment of US firearms to adversaries like Russia through third countries,” said BIS-OEE Special Agent in Charge Carson.  “Companies that provide false information to BIS to obtain export authorizations to circumvent our controls will be found out and held accountable.”

    As alleged in the indictment and other court filings, since at least March 2020, the defendant, together with others, conspired to export firearms on the United States DOC Control List from the U.S. to Russia.  The defendant, the General Director and owner of an arms dealer located in Bishkek, Kyrgyzstan (Kyrgyzstan Company-1), entered into a five-year, $900,000 contract with a company located in Chesapeake, Virginia (U.S. Company‑1) to purchase and export U.S. Company-1 firearms to Kyrgyzstan.  DOC issued a license for U.S. Company-1 to export firearms to Kyrgyzstan Company-1, but the license prohibited the export or re-export of the firearms to Russia.  Nevertheless, the defendant exported and re-exported U.S. Company‑1 firearms to Russia via Kyrgyzstan.  These illegally exported firearms included semi‑automatic hybrid rifle-pistols from U.S. Company-1.

    As alleged, after Kyrgyzstan Company-1 entered into a contract with U.S. Company-1, a second arms dealer company in Bishkek associated with the defendant (Kyrgyzstan Company-2) entered a contract with a Russian arms dealer (Russian Company-1) located in Moscow.  The contract between Russian Company-1 and Kyrgyzstan Company-2 provided that Kyrgyzstan Company‑2 would export “Goods” to Russian Company-1 in the amount of $10 million and noted that the “Goods” could be delivered in batches.  In correspondence in 2018, Russian Company-1 described the defendant’s company, Kyrgyzstan Company-1, as its “partner company.” 

    On or about February 3, 2021, U.S. Company-1 received an export license from DOC to export over $800,000 worth of firearms and parts to Kyrgyzstan Company-1.  The license stated that items within the scope of the license “may not be reexported or transferred (in-country),” subject to certain exceptions not applicable here.

    On or about July 2, 2022, the defendant emailed his banker: “Make payment according to the invoice attached to the letter,” and attached a commercial invoice from U.S. Company-1, which listed, among other things, 25 semi-automatic rifle-pistols with 25 unique serial numbers.  Two days later, on or about July 4, 2022, Kyrgyzstan Company‑2, sent $67,000 to Kyrgyzstan Company-1.  The next day, on or about July 5, 2022, Kyrgyzstan Company‑1 paid U.S. Company-1 $65,564—the full amount listed in the invoice from U.S. Company-1.

    According to an Electronic Export Information (EEI) made on July 7, 2022, Company-1 exported semi-automatic rifles from John F. Kennedy International Airport to Kyrgyzstan Company-1 pursuant to its February 3, 2021 export license on or about July 10, 2022. According to the EEI filing, the value of the export from U.S. Company-1 to Kyrgyzstan Company-1 was over $59,000.  The EEI filing’s corresponding license application indicated that the firearms were for “commercial resale in Kyrgyzstan.”

    On or about August 8, 2022, the defendant received a spreadsheet titled “Supply [U.S. Company-1] ([Russian Company-1]) weapon numbers.”  Russian Company-1 is a Russian company, and the DOC license did not authorize the export or re-export of the U.S. Company-1 firearms to Russia.  The spreadsheet listed the same semi-automatic rifle-pistol the defendant purchased from U.S. Company-1 and serial numbers matching the U.S. Company‑1 Invoice.

    On or about November 14, 2022, the General Director of Russian Company‑1 executed a form used by tax authorities of the member states of the Eurasian Economic Union, which includes both Kyrgyzstan and Russia.  The form listed the seller as Kyrgyzstan Company‑2 and the buyer as Russian Company-1 with an address in Moscow, Russia, and identified the goods as the same semi‑automatic rifle‑pistols that U.S. Company-1 exported to Kyrgyzstan Company‑1, the defendant’s company.  The defendant did not apply for, obtain or possess a license to export or re-export the semi‑automatic pistol-rifles to Russia.

    The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charges, the defendant faces up to 30 years’ imprisonment.

    The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States  Attorney Ellen H. Sise is in charge of the prosecution, along with Trial Attorney Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section (CES), with assistance from Litigation Analyst Rebecca Roth and CES Trial Attorney Scott Claffee.

    The case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine.  Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

    The Defendant:

    SERGEI ZHARNOVNIKOV
    Age:  46
    Bishkek, Kyrgyzstan

    E.D.N.Y. Docket No. 25-CR-45 (ENV)

    MIL Security OSI –

  • MIL-OSI Security: Guatemalan National Pleads Guilty to Illegally Entering the US After a Prior Removal

    Source: Office of United States Attorneys

    PORTLAND, Maine: A Guatemalan national pleaded guilty today in U.S. District Court in Portland to entering the United States after a prior removal.

    According to court records, in November 2024, an Immigration and Customs Enforcement (ICE) agent conducted a records check on Jorge Martinez-Urizar, 50. The check showed that he had been removed from the country on three prior occasions, most recently in July 2005, and that he had not filed any applications or petitions granting him permission to reenter or remain in the United States lawfully. Martinez was removed in 2005 after serving a 70-month sentence in Oregon for a 1999 conviction for assault in the second degree and unlawful use of a weapon.

    Martinez-Urizar faces a maximum prison term of 20 years and a fine up to $250,000.

    ICE investigated the case.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Raleigh County Woman Pleads Guilty to Fentanyl Crime

    Source: Office of United States Attorneys

    BECKLEY, W.Va. – Melanie E. Hussain, 25, of Crab Orchard, pleaded guilty today to distribution of a quantity of fentanyl.

    According to court documents and statements made in court, on November 2, 2022, Hussain sold approximately 4.2 grams of fentanyl to a confidential informant in exchange for $300. Hussain admitted to the transaction and to selling 2.3 grams of methamphetamine to the confidential informant in exchange for $300 on November 3, 2022. Hussain conducted both transactions at her Crab Orchard residence.

    Hussain is scheduled to be sentenced on June 12, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.

    United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.

    United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-137.

    ###

     

    MIL Security OSI –

  • MIL-OSI Security: Air Force Member Sentenced to 96 Months for Possession of Child Pornography

    Source: Office of United States Attorneys

    United States Attorney Susan T. Lehr announced that Kyle J. Logan, age 25, of Safety Harbor, Florida was sentenced on January 30, 2025, in federal court in Omaha, Nebraska for possession of child pornography. United States District Judge Brian C. Buescher sentenced Logan to 96 months’ imprisonment. There is no parole in the federal system. After his release from prison, Logan will be placed on a 5-year term of supervised release. Logan was also ordered to pay special assessments of $5,000.00 under each of the Justice for Victims of Trafficking Act (JVTA) and the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA).

    This investigation began in April 2023, when a minor victim living in West Virginia, contacted her local police to report she met an Air Force member, Logan, while playing Call of Duty online. The minor reported she had been in a relationship with Logan, which started after meeting him on the gaming platform and communicating with him on Discord. The minor reported being twelve years old at the time she began speaking to Logan. During the communication with Logan, their conversations turned sexual, and the minor disclosed Logan requested she send sexually explicit pictures of herself to Logan, which she did. 

    The United States Air Force Office of Special Investigations (AFOSI) opened an investigation into Logan who was stationed at Offutt Air Force Base, Nebraska, and ultimately interviewed Logan about his conduct with the minor. Logan admitted to knowing the minor was fifteen years old and requesting and receiving sexually explicit photos of the minor. AFOSI obtained search warrants for Logan’s Discord account and electronic devices. The searches revealed Logan possessed videos and images of the minor who initially reported Logan, as well as images and videos of a second victim. Ultimately, Logan was held accountable for possessing a total of 14 videos and 119 images of child pornography.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

    This case was investigated by the Air Force Office of Special Investigations. 

    MIL Security OSI –

  • MIL-OSI Security: New York Woman Pleads Guilty to Bank Fraud, False Use of Passport, and Aggravated Identity Theft

    Source: Office of United States Attorneys

    PORTLAND, Maine: A New York woman pleaded guilty in U.S. District Court in Portland today to bank fraud, false use of a passport, and aggravated identity theft.

    According to court records, in February 2024, Theresa Hartung, 62, entered a credit union in Gray and attempted to use a falsified passport card to withdraw money from an account. The falsified passport card presented by Hartung bore her picture with the personal information of an account holder. She also presented the victim’s Social Security number.

    Hartung faces up to 30 years in federal prison, a maximum fine of $1 million, and up to five years of supervised release on the bank fraud charge. She faces up to 10 years in prison, a $250,000 fine, and up to three years supervised release on the false use of a passport charge. On the aggravated identity theft charge, she faces a mandatory prison term of two years, consecutive to any other sentence imposed; a $250,000 fine; and up to one year of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The U.S. Department of State’s Diplomatic Security Service and the Cumberland County Sheriff’s Office investigated the case.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Oklahoma City Man Pleads Guilty to Committing Bank Fraud

    Source: Office of United States Attorneys

    OKLAHOMA CITY – AARON D. JOHNSON, 42, of Oklahoma City, has pleaded guilty to defrauding Farmers Bank, announced U.S. Attorney Robert J. Troester.

    On January 3, 2025, Johnson was charged by Information with bank fraud. Between September 2017 and November 6, 2018, Johnson was the President and Chief Executive Officer of Farmers Bank (the Bank), with branches in Carnegie and Oklahoma City, and had access to the Bank’s operating account credit card. According to the Information, between September 2017 and July 30, 2018, Johnson used the Bank’s card to pay his personal expenses, causing an overdraft in the Bank’s operating account of approximately $200,000. On July 30, 2018, Johnson approved a modification to a loan, without approval from the Bank’s board of directors, that renewed the loan in an increased amount. The Information further alleges that Johnson caused a $200,000 advance on the loan, wired the money into an account he controlled, and used the $200,000 to repay the overdraft that he caused.

    On February 4, 2024, Johnson pleaded guilty, and admitted he knowingly executed a scheme to obtain money from the Bank by means of false or fraudulent pretenses. At sentencing, Johnson faces up to 30 years in federal prison and a fine of up to $1,000,000.

    This case is the result of an investigation by the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorney Julia E. Barry is prosecuting the case. 

    MIL Security OSI –

  • MIL-OSI Security: 3 men believed to be part of South American Theft Group indicted for federal crimes related to burglary of NFL player’s Cincinnati home

    Source: Office of United States Attorneys

    CINCINNATI – A federal grand jury in Cincinnati has charged defendants believed to be operating as part of a South American Theft Group with transporting stolen goods interstate and falsifying records in a federal investigation. The three men allegedly committed the Dec. 9, 2024, burglary at the home of a local NFL player.

    A federal complaint was filed on Feb. 3 and the indictment was returned today, charging Jordan Francisco Quiroga Sanchez, 22, Bastian Alejandro Orellana Morales, 23, and Sergio Andres Ortega Cabello, 38, all of Chile.

    “Our investigation remains ongoing as these individuals seem to be the alleged tip of the iceberg of South American Theft Groups committing crimes throughout our district and elsewhere,” said U.S. Attorney Kenneth L. Parker. “We owe it to the victims, whether they are or are not professional athletes, to follow the evidence into these alleged criminal networks and hold the law-breakers accountable. I cannot thank our law enforcement partners enough for their commitment to working together to track down these perpetrators. Today is a day that law enforcement scored and spiked the ball.”

    “South American Theft Groups have been a major concern in the Cincinnati area,” said FBI Cincinnati Special Agent in Charge Elena Iatarola. “We appreciate the partnerships of all the agencies involved in the Southwest Ohio South American Theft Group Task Force for their hard work on this investigation.”

    “The Ohio Organized Crime Investigations Commission was created for – and excels at – these types of complex, multi-jurisdictional cases,” Ohio Attorney General Dave Yost said. “I’m proud of the work done so far, and look forward to more results as our task force continues its work.” 

    According to charging documents, law enforcement responded to the NFL player’s home around 8:14pm on Dec. 9, 2024, in reference to a reported burglary. An associate of the homeowner had been dropped off at the residence shortly after 8pm and discovered rooms were unusually messy and a primary bedroom window on the back side of the home had been broken.

    It is believed the burglary likely occurred between 6pm and 8pm. The homeowner was away from his residence playing in an NFL game in Dallas. During a security detail shift change at the home at approximately 6pm, security personnel walked the perimeter of the house and no windows appeared to be broken at that time.

    Continued investigation at the Cincinnati home led investigators to discover a trail camera image of a man carrying luggage and walking through the wooded area behind the home.

    Law enforcement tracked the subjects in various states following the burglary, and subsequently located the vehicle at the La Quinta hotel on University Boulevard in Fairborn. The Ohio State Highway Patrol later stopped the vehicle for a traffic violation.

    Phone analysis shows Cabello allegedly deleted photographs of the stolen goods and the back of the victim’s home during the traffic stop with the Ohio State Highway Patrol, thus falsifying records in a federal investigation. Additional cell phone analysis revealed other photos of the defendants in southeast Florida days after the burglary with luxury luggage and wearing the stolen jewelry.

    Also in the car with the defendants were punch tools to break glass, as well as an old Louisiana State University shirt and a Cincinnati Bengals hat believed to be taken from the victim’s home.

    The men were taken into local custody at the time of the traffic stop.

    Interstate transportation of stolen property is a federal crime punishable by up to 10 years in prison. Falsification of records in a federal investigation carries a potential penalty of up to 20 years in prison. The three men were previously charged locally and those state charges remain pending.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission’s Southwest Ohio Burglary Task Force; Hamilton County Sheriff Charmaine McGuffey; Ohio State Highway Patrol Superintendent Col. Charles A. Jones; Clark County Sheriff Christopher D. Clark; and Angie M. Salazar, Special Agent in Charge, Homeland Security Investigations (HSI), Detroit; announced the charges.

    Assistant United States Attorney Anthony Springer is representing the United States in this case.

    Charging documents merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: B-1B Lancers conduct training mission in support of BTF 25-1

    Source: United States Air Force

    B-1B Lancers assigned to the 34th Expeditionary Bomb Squadron participated in support of Bomber Task Force 25-1, at Andersen Air force Base, Guam, Feb. 4. BTF missions demonstrate lethality and interoperability in support of a free and open Indo-Pacific.

    MIL Security OSI –

  • MIL-OSI: Skyward Specialty Commutes the LPT, Announces Preliminary Fourth Quarter 2024 Results and Provides Guidance for 2025

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Feb. 05, 2025 (GLOBE NEWSWIRE) — Skyward Specialty Insurance Group, Inc. (Nasdaq: SKWD) (“Skyward Specialty” or the “Company”) today announced that it commuted the Loss Portfolio Transfer and Adverse Development and Retrocession Agreement (“LPT”) with R&Q Re (Bermuda) Ltd. (“R&Q”) related to accident years 2018 and prior. The Company received $11.7 million in cash. Additionally, at December 31, 2024 the Company strengthened LPT loss reserves by $25.3 million and recognized approximately $9.8 million, net of tax, of uncollectible reinsurance recoverable from R&Q.

    Skyward Specialty also announced the following fourth quarter 2024 preliminary results and provided 2025 guidance:

    Highlights for the fourth quarter included:

    • Gross written premiums of $388.4 million, an increase of $66.8 million, or 20.8%, when compared to 2023;
    • Adjusted combined ratio(1) of 91.6%, including catastrophe losses of 2.2 points;
    • Net investment income of $20.7 million;
    • Net income of $14.4 million; and,
    • Adjusted operating income(1) of $33.2 million.

    Guidance for the year ending 2025:

    • Net income between $138.0 million and $150.0 million; and,
    • Combined ratio between 91.0% and 92.0%, inclusive of 2.0 to 2.5 points of catastrophe losses.

    (1) See “Reconciliation of Non-GAAP Financial Measures”

    Lastly, the Company has reviewed its exposure to the January California wildfires and expects total losses and loss adjustment expenses to be less than $10.0 million, net of reinsurance.

    Skyward Specialty Chairman and CEO Andrew Robinson commented, “We are pleased to have completed the commutation of the LPT and remove future reinsurance recoverable credit risk related to this portfolio. We believe our reserve charge represents a conservative view of the ultimate losses at December 31, 2024.”

    “With respect to our fourth quarter, our preliminary results are simply outstanding with growth over 20% driven by the intentional investments we have been making in our surety, global agriculture, accident & health, transactional E&S, and mortgage and credit divisions and lines of business. Our adjusted combined ratio for the fourth quarter is a continuation of the excellent underwriting results that we have delivered every quarter since our IPO. With respect to our outlook for 2025, we believe we are positioned to produce another strong year of financial results. While competitive dynamics can change our outlook as we progress through the year, we would expect growth in gross written premiums to be in the low to mid-teens. Our guidance of a combined ratio between 91% and 92% and net income between $138.0 million and $150.0 million reinforces our strong conviction in the outlook of our business, and our sustained delivery of top quartile results while continuing to strategically invest in our business.”

    Fourth Quarter Earnings Release and Conference Call

    Skyward Specialty expects to issue its fourth quarter 2024 earnings results after the market closes on Tuesday, February 25, 2025. At 9:30 a.m. eastern time on February 26, Skyward Specialty management will hold a conference call to discuss quarterly results with insurance industry analysts. Interested parties may listen to the discussion at investors.skywardinsurance.com under Events & Presentations. Additionally, investors can access the earnings call via conference call by registering via the conference link. Users will receive dial-in information and a unique PIN to join the call upon registering.

    Non-GAAP Financial Measures

    This release contains certain financial measures and ratios that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). We refer to these measures as “non-GAAP financial measures.” We use these non-GAAP financial measures when planning, monitoring, and evaluating our performance.

    We have chosen to exclude the net impact of the Loss Portfolio Transfer (“LPT”), all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening in certain non-GAAP metrics, where noted, as the business subject to the LPT is not representative of our continuing business strategy. The business subject to the LPT is primarily related to policy years 2017 and prior, was generated and managed under prior leadership, and has either been exited or substantially repositioned during the reevaluation of our portfolio. We consider these non-GAAP financial measures to be useful metrics for our management and investors to facilitate operating performance comparisons from period to period. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered supplemental in nature and is not meant to be a substitute for revenue or net income, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as comparative measures. For more information regarding these non-GAAP financial measures and a reconciliation of such measures to comparable GAAP financial measures, see the section entitled “Reconciliation of Non-GAAP Financial Measures.”

    About Skyward Specialty Insurance Group, Inc.

    Skyward Specialty is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through eight underwriting divisions – Accident & Health, Captives, Global Property & Agriculture, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S. SKWD stock is traded on the Nasdaq Global Select Market, which represents the top fourth of all Nasdaq listed companies.

    Skyward Specialty’s subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A (Excellent) with stable outlook by A.M. Best Company. Additional information about Skyward Specialty can be found on our website at www.skywardinsurance.com.

    Forward-Looking Statements

    Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are typically, but not always, identified through use of the words “believe,” “expect,” “enable,” “may,” “will,” “could,” “intends,” “estimate,” “anticipate,” “plan,” “predict,” “probable,” “potential,” “possible,” “should,” “continue,” and other words of similar meaning. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Skyward Specialty’s Form 10-K, and include (but are not limited to) legislative changes at both the state and federal level, state and federal regulatory rule making promulgations and adjudications, class action litigation involving the insurance industry and judicial decisions affecting claims, policy coverages and the general costs of doing business, the potential loss of key members of our management team or key employees and our ability to attract and retain personnel, the impact of competition on products and pricing, inflation in the costs of the products and services insurance pays for, product development, geographic spread of risk, weather and weather-related events, other types of catastrophic events, our ability to obtain reinsurance coverage at prices and on terms that allow us to transfer risk and adequately protect our company against financial loss, and losses resulting from reinsurance counterparties failing to pay us on reinsurance claims. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

    Skyward Specialty Insurance Group, Inc.

    Investor contact:
    Natalie Schoolcraft,
    nschoolcraft@skywardinsurance.com
    614-494-4988

    or

    Media contact:
    Haley Doughty
    hdoughty@skywardinsurance.com
    713-935-4944

    Skyward Specialty Insurance Group, Inc.
    Reconciliation of Non-GAAP Financial Measures
     

    Adjusted operating income – We define adjusted operating income as net income excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future outlook, net of tax impact. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Adjusted operating income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted operating income differently.      

    ($ in thousands) Three months ended December 31,
    (unaudited)   2024  
      Pre-tax   After-tax
    Income $             18,554     $             14,406  
    Less (add):      
    Net investment losses               (10,409 )                   (8,223 )
    Net impact of loss portfolio transfer               (12,398 )                   (9,794 )
    Other income                         35                             28  
    Other expenses                 (1,042 )                       (823 )
    Adjusted operating income $             42,368     $             33,218  
           
           

    Adjusted Loss Ratio / Adjusted Combined Ratio – We define adjusted loss ratio and adjusted combined ratio as the corresponding ratio (calculated in accordance with GAAP), excluding losses and LAE related to the LPT and all development on reserves fully or partially covered by the LPT and amortization of deferred gains associated with recoveries of prior LPT reserve strengthening. We use these adjusted ratios as internal performance measures in the management of our operations because we believe they give our management and other users of our financial information useful insight into our results of operations and our underlying business performance. Our adjusted loss ratio and adjusted combined ratio should not be viewed as substitutes for our loss ratio and combined ratio, respectively.

    ($ in thousands) Three months ended December 31,
    (unaudited) 2024
      $   % of Net Earned Premiums
    Net earned premiums                                      293,240      
           
    Losses and LAE                                      196,320       66.9 %
    Less: Pre-tax net impact of LPT                                        12,398       4.2 %
    Adjusted losses and LAE                                      183,922       62.7 %
           
    Net policy acquisition costs                                        44,702       15.3 %
    Other operating and general expenses                                        40,785       13.9 %
    Less: commission and fee income                                            (806 )     (0.3 )%
    Total net expenses                                        84,681       28.9 %
           
    Combined ratio       95.8 %
    Less: net impact of LPT       4.2 %
    Adjusted combined ratio       91.6 %
           
           

    The MIL Network –

  • MIL-OSI: Symbotic Reports First Quarter Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, Mass., Feb. 05, 2025 (GLOBE NEWSWIRE) — Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its first fiscal quarter of 2025, ended December 28, 2024. Symbotic posted revenue of $487 million, a net loss of $19 million and adjusted EBITDA1 of $18 million for the first quarter of fiscal 2025. In the first quarter of fiscal 2024, Symbotic had revenue of $360 million, a net loss of $19 million and adjusted EBITDA1 of $8 million. Cash and cash equivalents increased by $176 million from the prior quarter to $903 million at the end of the first quarter of fiscal year 2025.

    “In the first quarter, we continued to deliver high growth while enhancing our technology position,” said Rick Cohen, Chairman and Chief Executive Officer of Symbotic. “With our recent acquisition of Walmart’s Advanced Systems and Robotics business now completed, we look forward to enhancing an already strong position to drive exceptional results for our stakeholders.”

    “First quarter revenue grew over 35% year-over-year driven by solid progress across our 44 systems in the process of deployment,” said Symbotic Chief Financial Officer, Carol Hibbard. “Looking forward to the fiscal second quarter of 2025, we expect another quarter of at least 30% year-over-year revenue growth with expanding margins.”

    OUTLOOK

    For the second quarter of fiscal 2025, Symbotic expects revenue of $510 million to $530 million, and adjusted EBITDA2 of $26 million to $30 million.

    WEBCAST INFORMATION

    Symbotic will host a webcast today at 5:00 pm ET to discuss its first quarter of fiscal year 2025 results. The webcast link is: https://edge.media-server.com/mmc/go/Symbotic-Q1-2025.

    _______________________________
    1 Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP financial measure as defined below under “Use of Non-GAAP Financial Information.” See the tables below for reconciliations to net loss, the most comparable GAAP measure.
    2 Symbotic is not providing guidance for net loss, which is the most comparable GAAP financial measure to adjusted EBITDA, because information reconciling forward-looking adjusted EBITDA to net loss is unavailable to it without unreasonable effort. Symbotic is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Symbotic’s control and/or cannot be reasonably predicted, such as the provision for stock-based compensation.

    ABOUT SYMBOTIC

    Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today’s complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com.

    USE OF NON-GAAP FINANCIAL INFORMATION

    Symbotic reports its financial results in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). This press release contains financial measures that are not recognized under U.S. GAAP (“non-GAAP financial measures”), including adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, and free cash flow. These non-GAAP financial measures have limitations as an analytical tool as they do not have a standardized meaning prescribed by U.S. GAAP. The non-GAAP financial measures Symbotic uses may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies and, therefore, are unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP financial measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management’s perspective. Accordingly, non-GAAP financial measures should not be considered a substitute for, in isolation from, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP financial measures presented in this press release are reconciled to their closest reported U.S. GAAP financial measures. Symbotic recommends that investors review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and not rely on any single financial measure to evaluate its business.

    Symbotic defines adjusted EBITDA, a non-GAAP financial measure, as GAAP net income or loss excluding the following items: interest income; income taxes; depreciation and amortization; stock-based compensation; business combination transaction expenses; joint venture formation fees; internal control remediation; equity method investment; and other non-recurring items that may arise from time to time. Symbotic defines adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation and stock-based compensation. Symbotic defines adjusted gross profit margin, a non-GAAP financial measure, as adjusted gross profit divided by revenue. Symbotic defines free cash flow, a non-GAAP financial measure, as net cash provided by or used in operating activities less purchases of property and equipment and capitalization of internal use software development costs. In addition to Symbotic’s financial results determined in accordance with U.S. GAAP, Symbotic believes that adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, and free cash flow non-GAAP financial measures, are useful in evaluating the performance of Symbotic’s business because they highlight trends in its core business.

    FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Symbotic’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events, backlog or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions.

    Forward-looking statements include, but are not limited to, statements about the ability of or expectations regarding Symbotic to:

    • meet the technical requirements of existing or future supply agreements with its customers, including with respect to existing backlog;
    • expand its target customer base and maintain its existing customer base;
    • realize the benefits expected from the acquisition of Walmart’s Advanced Systems and Robotics business, the GreenBox joint venture, the Commercial Agreement with GreenBox, Symbotic’s acquisitions of developed technology intangible assets, and the commercial agreement with Walmart de México y Centroamérica;
    • realize its outlook, including its system gross margin;
    • anticipate industry trends;
    • maintain and enhance its system;
    • maintain the listing of the Symbotic Class A Common Stock on Nasdaq;
    • execute its growth strategy;
    • develop, design and sell systems that are differentiated from those of competitors;
    • execute its research and development strategy;
    • acquire, maintain, protect and enforce intellectual property;
    • attract, train and retain effective officers, key employees or directors;
    • comply with laws and regulations applicable to its business;
    • stay abreast of modified or new laws and regulations applying to its business;
    • successfully defend litigation;
    • issue equity securities in connection with future transactions;
    • meet future liquidity requirements and, if applicable, comply with restrictive covenants related to long-term indebtedness;
    • timely and effectively remediate any material weaknesses in its internal control over financial reporting;
    • anticipate rapid technological changes; and
    • effectively respond to general economic and business conditions.

    Forward-looking statements also include, but are not limited to, statements with respect to:

    • the future performance of Symbotic’s business and operations;
    • expectations regarding revenues, expenses, adjusted EBITDA and anticipated cash needs;
    • expectations regarding cash flow, liquidity and sources of funding;
    • expectations regarding capital expenditures;
    • the anticipated benefits of Symbotic’s leadership structure;
    • the effects of pending and future legislation;
    • business disruption;
    • disruption to the business due to Symbotic’s dependency on certain customers;
    • increasing competition in the warehouse automation industry;
    • any delays in the design, production or launch of Symbotic’s systems and products;
    • the failure to meet customers’ requirements under existing or future contracts or customer’s expectations as to price or pricing structure;
    • any defects in new products or enhancements to existing products;
    • the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of Symbotic’s new products and services and any changes in its product mix that shift too far into lower gross margin products; and
    • any consequences associated with joint ventures and legislative and regulatory actions and reforms.

    Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 4, 2024. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these forward-looking statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. While we believe that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements speak only as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. Symbotic is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that Symbotic has filed or will file from time to time with the SEC.

    In addition to factors previously disclosed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 28, 2024 filed with the SEC on December 4, 2024 and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: failure to realize the benefits expected from the acquisition of Walmart’s Advanced Systems and Robotics business and risks related to the acquisition.

    Any financial projections in this press release or discussed in the webcast are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic, or its representatives, considered or considers the projections to be a reliable prediction of future events.

    Annualized, projected and estimated numbers are not forecasts and may not reflect actual results.

    This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.

    INVESTOR RELATIONS CONTACT

    Charlie Anderson
    Vice President, Investor Relations & Corporate Development
    ir@symbotic.com

    MEDIA INQUIRIES
    mediainquiry@symbotic.com

     
    Symbotic Inc. and Subsidiaries
    Consolidated Statements of Operations
       
      Three Months Ended
    (in thousands, except share and per share information) December 28, 2024   September 28, 2024   December 30, 2023
    Revenue:          
    Systems $ 464,059     $ 536,447     $ 347,705  
    Software maintenance and support   5,525       5,893       2,169  
    Operation services   17,109       22,226       10,069  
    Total revenue   486,693       564,566       359,943  
    Cost of revenue:          
    Systems   381,819       442,009       283,946  
    Software maintenance and support   1,884       2,748       1,726  
    Operation services   22,951       23,392       10,214  
    Total cost of revenue   406,654       468,149       295,886  
    Gross profit   80,039       96,417       64,057  
    Operating expenses:          
    Research and development expenses   43,592       40,130       42,144  
    Selling, general, and administrative expenses   61,076       45,399       47,012  
    Total operating expenses   104,668       85,529       89,156  
    Operating income (loss)   (24,629 )     10,888       (25,099 )
    Other income, net   7,823       9,416       6,199  
    Income (loss) before income tax   (16,806 )     20,304       (18,900 )
    Income tax expense   (150 )     (4,110 )     (172 )
    Loss from equity method investment   (1,564 )     (240 )     —  
    Net income (loss)   (18,520 )     15,954       (19,072 )
    Net income (loss) attributable to noncontrolling interests   (15,044 )     13,118       (16,236 )
    Net income (loss) attributable to common stockholders $ (3,476 )   $ 2,836     $ (2,836 )
               
    Income (loss) per share of Class A Common Stock:          
    Basic and Diluted(1) $ (0.03 )   $ 0.03     $ (0.03 )
    Weighted-average shares of Class A Common Stock outstanding:          
    Basic   106,098,566       104,146,479       83,320,943  
    Diluted(2) n/a     108,646,977     n/a
                   
    (1) For the three months ended September 28, 2024, basic and diluted EPS were calculated as the same value and as such presented on the same line.
     
    (2) Periods in which the Company was in a net loss position, diluted weighted-average shares of Class A Common Stock outstanding is the same as basic and as such indicated with “n/a”.
     
     
    Symbotic Inc. and Subsidiaries
    Reconciliation of Non-GAAP Financial Measures
     
    The following table reconciles GAAP net income (loss) to Adjusted EBITDA:
       
      Three Months Ended
    (in thousands) December 28, 2024   September 28, 2024   December 30, 2023
    Net income (loss) $ (18,520 )   $ 15,954     $ (19,072 )
    Interest income   (7,769 )     (9,353 )     (6,149 )
    Income tax expense   150       4,110       172  
    Depreciation and amortization   6,860       5,780       2,565  
    Stock-based compensation   28,741       26,100       29,462  
    Business Combination transaction expenses   3,802       324       —  
    Joint venture formation fees   —       —       1,089  
    Internal controls remediation   3,076       —       —  
    Restructuring charges   —       (775 )     —  
    Equity method investment   1,564       240       —  
    Adjusted EBITDA $ 17,904     $ 42,380     $ 8,067  
    The following table reconciles GAAP gross profit to Adjusted gross profit:
       
      Three Months Ended
    (in thousands) December 28, 2024   September 28, 2024   December 30, 2023
    Gross profit $ 80,039     $ 96,417     $ 64,057  
    Depreciation   2,469       2,208       93  
    Stock-based compensation   3,709       3,260       3,431  
    Restructuring charges   —       (775 )     —  
    Adjusted gross profit $ 86,217     $ 101,110     $ 67,581  
                           
    Gross profit margin   16.4 %     17.1 %     17.8 %
    Adjusted gross profit margin   17.7 %     17.9 %     18.8 %
    The following table reconciles GAAP net cash provided by (used in) operating activities to free cash flow:
       
      Three Months Ended
    (in thousands) December 28, 2024   September 28, 2024   December 30, 2023
               
    Net cash provided by (used in) operating activities $ 205,027     $ (99,383 )   $ (30,150 )
    Purchases of property and equipment   (7,357 )     (20,730 )     (2,173 )
    Capitalization of internal use software development costs   —       (637 )     (820 )
    Free cash flow $ 197,670     $ (120,750 )   $ (33,143 )
                           
     
    Symbotic Inc. and Subsidiaries
    Supplemental Common Share Information
     
    Total Common Shares issued and outstanding:
               
      December 28, 2024     September 28, 2024  
    Class A Common Shares issued and outstanding 106,521,915     104,689,377  
    Class V-1 Common Shares issued and outstanding 76,588,618     76,965,386  
    Class V-3 Common Shares issued and outstanding 404,309,196     404,309,196  
      587,419,729     585,963,959  
               
     
    Symbotic Inc. and Subsidiaries
    Consolidated Balance Sheets
           
    (in thousands, except share data) December 28, 2024   September 28, 2024
    ASSETS
    Current assets:      
    Cash and cash equivalents $ 903,034     $ 727,310  
    Accounts receivable   134,391       201,548  
    Unbilled accounts receivable   223,349       218,233  
    Inventories   108,691       106,136  
    Deferred expenses   3,221       1,058  
    Prepaid expenses and other current assets   85,740       101,252  
    Total current assets   1,458,426       1,355,537  
    Property and equipment, net   105,079       97,109  
    Intangible assets, net   14,949       3,664  
    Equity method investment   85,946       81,289  
    Other assets   51,222       40,953  
    Total assets $ 1,715,622     $ 1,578,552  
    LIABILITIES AND EQUITY
    Current liabilities:      
    Accounts payable $ 206,324     $ 175,188  
    Accrued expenses and other current liabilities   203,353       165,644  
    Deferred revenue   787,174       676,314  
    Total current liabilities   1,196,851       1,017,146  
    Deferred revenue   76,712       129,233  
    Other liabilities   48,134       42,043  
    Total liabilities   1,321,697       1,188,422  
    Commitments and contingencies   —       —  
    Equity:      
    Class A Common Stock, 3,000,000,000 shares authorized, 106,521,915 and 104,689,377 shares issued and outstanding at December 28, 2024 and September 28, 2024, respectively   13       13  
    Class V-1 Common Stock, 1,000,000,000 shares authorized, 76,588,618 and 76,965,386 shares issued and outstanding at December 28, 2024 and September 28, 2024, respectively   7       7  
    Class V-3 Common Stock, 450,000,000 shares authorized, 404,309,196 shares issued and outstanding at December 28, 2024 and September 28, 2024   40       40  
    Additional paid-in capital   1,526,573       1,523,692  
    Accumulated deficit   (1,327,401 )     (1,323,925 )
    Accumulated other comprehensive loss   (2,696 )     (2,594 )
    Total stockholders’ equity   196,536       197,233  
    Noncontrolling interest   197,389       192,897  
    Total equity   393,925       390,130  
    Total liabilities and equity $ 1,715,622     $ 1,578,552  
                   
     
    Symbotic Inc. and Subsidiaries
    Consolidated Statements of Cash Flows
       
      Three Months Ended
    (in thousands) December 28, 2024   September 28, 2024   December 30, 2023
    Cash flows from operating activities:          
    Net income (loss) $ (18,520 )   $ 15,954     $ (19,072 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
    Depreciation and amortization   7,645       6,432       3,197  
    Foreign currency (gains) losses, net   (32 )     —       22  
    Loss on disposal of assets   201       337       —  
    Provision for excess and obsolete inventory   688       (775 )     70  
    Stock-based compensation   26,773       25,350       29,462  
    Changes in operating assets and liabilities:          
    Accounts receivable   67,376       (101,010 )     (83,789 )
    Inventories   (10,425 )     30,202       (1,567 )
    Prepaid expenses and other current assets   10,317       (114,889 )     (32,653 )
    Deferred expenses   (2,164 )     5,690       (7,152 )
    Other assets   (1,079 )     (3,848 )     (5,906 )
    Accounts payable   31,145       47,399       (7,261 )
    Accrued expenses and other current liabilities   45,540       (6,209 )     15,716  
    Deferred revenue   58,336       6,309       69,966  
    Other liabilities   (10,774 )     (10,325 )     8,817  
    Net cash provided by (used in) operating activities   205,027       (99,383 )     (30,150 )
    Cash flows from investing activities:          
    Purchases of property and equipment   (7,357 )     (20,730 )     (2,173 )
    Capitalization of internal use software development costs   —       (637 )     (820 )
    Proceeds from maturities of marketable securities   —       —       150,000  
    Purchases of marketable securities   —       —       (48,317 )
    Acquisitions of strategic investments   (17,992 )     (23,996 )     —  
    Net cash provided by (used in) investing activities   (25,349 )     (45,363 )     98,690  
    Cash flows from financing activities:          
    Payment for taxes related to net share settlement of stock-based compensation awards   (3,012 )     —       (56 )
    Net proceeds from issuance of common stock under employee stock purchase plan   —       2,308       —  
    Distributions to or on behalf of Symbotic Holdings LLC partners   (850 )     (561 )     —  
    Proceeds from exercise of warrants   —       —       158,702  
    Net cash provided by (used in) financing activities   (3,862 )     1,747       158,646  
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash   (84 )     21       (2 )
    Net increase (decrease) in cash, cash equivalents, and restricted cash   175,732       (142,978 )     227,184  
    Cash, cash equivalents, and restricted cash – beginning of period   730,354       873,332       260,918  
    Cash, cash equivalents, and restricted cash – end of period $ 906,086     $ 730,354     $ 488,102  
               
               
      Three Months Ended
    (in thousands) December 28, 2024   September 28, 2024   December 30, 2023
    Reconciliation of cash, cash equivalents, and restricted cash:          
    Cash and cash equivalents $ 903,034     $ 727,310     $ 485,952  
    Restricted cash   3,052       3,044       2,150  
    Cash, cash equivalents, and restricted cash $ 906,086     $ 730,354     $ 488,102  
                           

    The MIL Network –

  • MIL-OSI: FormFactor, Inc. Reports 2024 Fourth Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    FY24 revenue of $764 million, up 15.2% from $663 million in FY23, driven by growth in HBM revenue;
    Announces acquisition of minority interest in FICT Limited, a key supplier of industry-leading, high-performance advanced probe card components

    LIVERMORE, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the fourth quarter of fiscal 2024 ended December 28, 2024. Quarterly revenues were $189.5 million, a decrease of 8.9% compared to $207.9 million in the third quarter of fiscal 2024, and an increase of 12.7% from $168.2 million in the fourth quarter of fiscal 2023. For fiscal 2024, FormFactor recorded revenues of $764 million, up 15.2% from $663 million in fiscal 2023.

    • High Bandwidth Memory grew fourfold in fiscal 2024 compared to the prior year, driven by adoption of Generative AI, overcoming persistent lackluster demand in important high-unit-volume markets like PCs and mobile handsets.
    • DRAM probe-card revenue during the fourth quarter set third consecutive quarterly record.
    • Continued focus on expanding and diversifying FormFactor’s market position in enabling advanced packaging, through new customer qualifications in client PCs and server applications and new high-performance-compute applications.
    • FICT acquisition with MBK Partners solidifies FormFactor’s access to FICT’s technologies and products, which are an important component of advanced probe cards.

    “As expected, FormFactor reported sequentially lower fourth-quarter revenue, gross margin, and non-GAAP earnings per share, driven by the forecasted reduction in Foundry & Logic probe-card revenue,” said Mike Slessor, CEO of FormFactor, Inc. “This was partially offset by growth in DRAM probe-card revenue, with HBM increasing to approximately half of DRAM revenue.”

    FormFactor also announced today that together with MBK Partners (“MBKP”), the largest private equity firm in North Asia, it is acquiring FICT Limited (“FICT”) from Advantage Partners Inc. FICT, headquartered in Nagano, Japan, has been providing the semiconductor test and high-performance computing industries with complex multi-layer organic substrates, printed circuit boards, and related leading-edge technologies and services since its inception as a Fujitsu business unit in 1967. This acquisition is designed to strengthen and grow FICT’s business, and the FormFactor+MBKP consortium is committed to advancing FICT’s mission to serve its entire customer base.

    With this transaction, FormFactor invests approximately US$60M into the consortium. FormFactor will hold a minority, non-controlling stake of 20% and will be granted a seat on the company’s board of directors. All required regulatory and third-party approvals and conditions have been satisfied and the transaction is expected to close within the current quarter. The transaction is not expected to have a material impact on FormFactor’s results of operations.

    “The semiconductor industry’s rapidly accelerating adoption of advanced packaging requires increased investment and stronger collaboration across the test and assembly supply chain,” said Mike Slessor, FormFactor’s CEO. “FormFactor’s investment in FICT builds on our long-term collaboration with them as a supplier of the industry-leading, high-performance components we use in our advanced probe cards, and provides a platform for accelerated development of tomorrow’s test and packaging consumables.”

    “We’ve built a partnership with MBKP, North Asia’s leading private equity firm, with a shared vision to enhance FICT’s long-term value by fully serving all of FICT’s existing and potential customers,” Slessor concluded.

    Fourth Quarter and Fiscal 2024 Highlights

    On a GAAP basis, net income for the fourth quarter of fiscal 2024 was $9.7 million, or $0.12 per fully-diluted share, compared to net income for the third quarter of fiscal 2024 of $18.7 million, or $0.24 per fully-diluted share, and net income for the fourth quarter of fiscal 2023 of $75.8 million, or $0.97 per fully-diluted share. Net income for fiscal 2024 was $69.6 million, or $0.89 per fully-diluted share, compared to net income for fiscal 2023 of $82.4 million, or $1.05, per fully-diluted share. Gross margin for the fourth quarter of 2024 was 38.8%, compared with 40.7% in the third quarter of 2024, and 40.4% in the fourth quarter of 2023. Gross margin for fiscal 2024 was 40.3%, compared to 39.0% for fiscal 2023. The GAAP financial results for the fourth quarter of 2023 and fiscal 2023 include a $73.0 million gain from the sale of FRT that has been excluded from FormFactor’s fourth quarter and fiscal 2023 non-GAAP results. The GAAP financial results for fiscal 2024 include a $20.3 million gain from the sale of our China operations that has been excluded from FormFactor’s fiscal 2024 non-GAAP results.

    On a non-GAAP basis, net income for the fourth quarter of fiscal 2024 was $21.3 million, or $0.27 per fully-diluted share, compared to net income for the third quarter of fiscal 2024 of $27.2 million, or $0.35 per fully-diluted share, and net income for the fourth quarter of fiscal 2023 of $15.7 million, or $0.20 per fully-diluted share. Non-GAAP net income for fiscal 2024 was $90.2 million, or $1.15 per fully-diluted share, compared to net income of $56.8 million, or $0.73 per fully-diluted share for fiscal 2023. On a non-GAAP basis, gross margin for the fourth quarter of 2024 was 40.2%, compared with 42.2% in the third quarter of 2024, and 42.1% in the fourth quarter of 2023. Non-GAAP gross margin for fiscal 2024 was 41.7%, compared to 40.7% for fiscal 2023.

    A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

    GAAP net cash provided by operating activities for the fourth quarter of fiscal 2024 was $35.9 million, compared to $26.7 million for the third quarter of fiscal 2024, and $9.3 million for the fourth quarter of fiscal 2023. Free cash flow for the fourth quarter of fiscal 2024 was $28.8 million, compared to free cash flow for the third quarter of fiscal 2024 of $20.0 million, and free cash flow for the fourth quarter of 2023 of negative $0.3 million. GAAP net cash provided by operating activities for fiscal 2024 was $117.5 million, compared to $64.6 million for fiscal 2023. Free cash flow for fiscal 2024 and fiscal 2023 was $82.8 million and $11.4 million, respectively. A reconciliation of net cash provided by operating activities to non-GAAP free cash flow is provided in the schedules included below.

    Outlook

    Dr. Slessor added, “We continue to see slow demand in important high-unit-volume markets, like client PCs and mobile handsets, through the first quarter, with anticipated sequential reductions in demand for both non-HBM DRAM probe cards and Systems. That notwithstanding, as we move through 2025, we expect an overall increase in demand for FormFactor’s products.”

    For the first quarter ending March 29, 2025, FormFactor is providing the following outlook*:

        GAAP   Reconciling Items**   Non-GAAP
    Revenue   $170 million +/- $5 million   —   $170 million +/- $5 million
    Gross Margin   36.5% +/- 1.5%   $3 million   38% +/- 1.5%
    Net income per diluted share   $0.07 +/- $0.04   $0.12   $0.19 +/- $0.04

    *This outlook assumes consistent foreign currency rates.
    **Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.

    We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today.

    The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.

    Use of Non-GAAP Financial Information:

    To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and twelve months ended months ended December 28, 2024, and for outlook provided before, as well as for the comparable periods of fiscal 2023, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management’s reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.

    About FormFactor:

    FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle – from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

    Forward-looking Statements:

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, customer demand, conditions in the semiconductor industry, the timing of completion of the FICT acquisition, the expected benefit thereof and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” and “continue,” the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; delays in the consummation of the FICT acquisition; the potential impact on the business of FormFactor and FICT due to uncertainties in connection with the acquisition; the retention of employees of FICT following acquisition; the ability of FormFactor to achieve expected benefits from the FICT acquisition; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions, investments in capacity and investments in new electronic data systems and information technology; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

     
    FORMFACTOR, INC. 
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended   Twelve Months Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    Revenues $ 189,483     $ 207,917     $ 168,163     $ 763,599     $ 663,102  
    Cost of revenues   115,903       123,212       100,229       455,676       404,522  
    Gross profit   73,580       84,705       67,934       307,923       258,580  
    Operating expenses:                  
    Research and development   30,504       31,243       28,166       121,938       115,765  
    Selling, general and administrative   35,226       35,607       31,451       141,786       133,012  
    Total operating expenses   65,730       66,850       59,617       263,724       248,777  
    Gain on sale of business   —       —       72,953       20,581       72,953  
    Operating income   7,850       17,855       81,270       64,780       82,756  
    Interest income, net   3,472       3,650       2,376       13,693       6,796  
    Other income (expense), net   617       (558 )     (1,546 )     939       (285 )
    Income before income taxes   11,939       20,947       82,100       79,412       89,267  
    Provision for income taxes   2,234       2,211       6,254       9,798       6,880  
    Net income $ 9,705     $ 18,736     $ 75,846     $ 69,614     $ 82,387  
    Net income per share:                  
    Basic $ 0.13     $ 0.24     $ 0.98     $ 0.90     $ 1.06  
    Diluted $ 0.12     $ 0.24     $ 0.97     $ 0.89     $ 1.05  
    Weighted-average number of shares used in per share calculations:                
    Basic   77,267       77,406       77,684       77,340       77,370  
    Diluted   77,982       78,439       78,410       78,437       78,159  
     
    FORMFACTOR, INC. 
    NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended   Twelve Months Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP Gross Profit $ 73,580     $ 84,705     $ 67,934     $ 307,923     $ 258,580  
    Adjustments:                  
    Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions   555       530       756       2,216       4,336  
    Stock-based compensation   1,944       1,934       2,053       7,738       6,854  
    Restructuring charges   32       524       —       639       357  
    Non-GAAP Gross Profit $ 76,111     $ 87,693     $ 70,743     $ 318,516     $ 270,127  
                       
    GAAP Gross Margin   38.8 %     40.7 %     40.4 %     40.3 %     39.0 %
    Adjustments:                  
    Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions   0.4 %     0.3 %     0.5 %     0.3 %     0.6 %
    Stock-based compensation   1.0 %     0.9 %     1.2 %     1.0 %     1.0 %
    Restructuring charges   — %     0.3 %     — %     0.1 %     0.1 %
    Non-GAAP Gross Margin   40.2 %     42.2 %     42.1 %     41.7 %     40.7 %
                       
    GAAP operating expenses $ 65,730     $ 66,850     $ 59,617     $ 263,724     $ 248,777  
    Adjustments:                  
    Amortization of intangibles and other   (191 )     (191 )     (518 )     (764 )     (4,081 )
    Stock-based compensation   (8,269 )     (7,002 )     (7,230 )     (32,025 )     (31,762 )
    Restructuring charges   (371 )     (298 )     —       (767 )     (1,183 )
    Costs related to sale and acquisition of businesses   (1,689 )     (13 )     (268 )     (2,391 )     (2,407 )
    Non-GAAP operating expenses $ 55,210     $ 59,346     $ 51,601     $ 227,777     $ 209,344  
                       
    GAAP operating income $ 7,850     $ 17,855     $ 81,270     $ 64,780     $ 82,756  
    Adjustments:                  
    Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other   746       721       1,274       2,980       8,417  
    Stock-based compensation   10,213       8,936       9,283       39,763       38,616  
    Restructuring charges   403       822       —       1,406       1,540  
    Gain on sale of business, net of cost related to sale and acquisition of businesses   1,689       13       (72,685 )     (18,190 )     (70,546 )
    Non-GAAP operating income $ 20,901     $ 28,347     $ 19,142     $ 90,739     $ 60,783  
     
    FORMFACTOR, INC. 
    NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended   Twelve Months Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP net income $ 9,705     $ 18,736     $ 75,846     $ 69,614     $ 82,387  
    Adjustments:                  
    Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other   746       721       1,274       2,980       8,417  
    Stock-based compensation   10,213       8,936       9,283       39,763       38,616  
    Restructuring charges   415       822       —       1,418       1,540  
    Gain on sale of business, net of cost related to sale and acquisition of businesses   1,689       13       (72,685 )     (18,190 )     (70,546 )
    Income tax effect of non-GAAP adjustments   (1,445 )     (2,002 )     2,026       (5,368 )     (3,624 )
    Non-GAAP net income $ 21,323     $ 27,226     $ 15,744     $ 90,217     $ 56,790  
                       
    GAAP net income per share:                  
    Basic $ 0.13     $ 0.24     $ 0.98     $ 0.90     $ 1.06  
    Diluted $ 0.12     $ 0.24     $ 0.97     $ 0.89     $ 1.05  
                       
    Non-GAAP net income per share:                  
    Basic $ 0.28     $ 0.35     $ 0.20     $ 1.17     $ 0.73  
    Diluted $ 0.27     $ 0.35     $ 0.20     $ 1.15     $ 0.73  
     
    FORMFACTOR, INC. 
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Twelve Months Ended
      December 28,
    2024    		   December 30,
    2023
    Cash flows from operating activities:      
    Net income $ 69,614     $ 82,387  
    Selected adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation   30,321       30,603  
    Amortization   2,582       6,850  
    Stock-based compensation expense   39,763       38,616  
    Provision for excess and obsolete inventories   12,342       15,003  
    Gain on sale of business   (20,581 )     (72,953 )
    Non-cash restructuring charges   428       —  
    Other activity impacting operating cash flows   (16,507 )     (35,904 )
    Net cash provided by operating activities   117,534       64,602  
    Cash flows from investing activities:      
    Acquisition of property, plant and equipment   (38,436 )     (56,027 )
    Proceeds from sale of business   21,585       101,785  
    Purchases of marketable securities, net   (15,129 )     (16,709 )
    Purchase of promissory note receivable   (1,500 )     —  
    Net cash provided by (used in) investing activities   (33,480 )     29,049  
    Cash flows from financing activities:      
    Purchase of common stock through stock repurchase program   (53,302 )     (19,801 )
    Proceeds from issuances of common stock   9,748       8,822  
    Principal repayments on term loans   (1,075 )     (1,045 )
    Tax withholdings related to net share settlements of equity awards   (19,983 )     (10,687 )
    Net cash used in financing activities   (64,612 )     (22,711 )
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (3,509 )     (2,649 )
    Net increase in cash, cash equivalents and restricted cash   15,933       68,291  
    Cash, cash equivalents and restricted cash, beginning of period   181,273       112,982  
    Cash, cash equivalents and restricted cash, end of period $ 197,206     $ 181,273  
     
    FORMFACTOR, INC. 
    RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
    (In thousands)
    (Unaudited)
     
      Three Months Ended   Twelve Months Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    Net cash provided by operating activities $ 35,913     $ 26,731     $ 9,250     $ 117,534     $ 64,602  
    Adjustments:                  
    Sale of business and acquisition related payments in working capital   506       2,134       268       3,317       2,407  
    Cash paid for interest   93       97       105       391       422  
    Capital expenditures   (7,663 )     (8,939 )     (9,933 )     (38,436 )     (56,027 )
    Free cash flow $ 28,849     $ 20,023     $ (310 )   $ 82,806     $ 11,404  

     

     
    FORMFACTOR, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
        December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023
    ASSETS            
    Current assets:            
    Cash and cash equivalents   $ 190,728     $ 184,506     $ 177,812  
    Marketable securities     169,295       169,961       150,507  
    Accounts receivable, net of allowance for credit losses     104,294       116,866       102,957  
    Inventories, net     101,676       105,374       111,685  
    Restricted cash     3,746       3,773       1,152  
    Prepaid expenses and other current assets     35,389       34,302       29,667  
    Total current assets     605,128       614,782       573,780  
    Restricted cash     2,732       2,210       2,309  
    Operating lease, right-of-use-assets     22,579       25,034       30,519  
    Property, plant and equipment, net of accumulated depreciation     210,230       204,108       204,399  
    Goodwill     199,171       200,137       201,090  
    Intangibles, net     10,355       11,017       12,938  
    Deferred tax assets     92,012       92,826       78,964  
    Other assets     4,008       3,669       2,795  
    Total assets   $ 1,146,215     $ 1,153,783     $ 1,106,794  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Current liabilities:            
    Accounts payable   $ 62,287     $ 52,086     $ 63,857  
    Accrued liabilities     43,742       46,508       41,037  
    Current portion of term loan, net of unamortized issuance costs     1,106       1,098       1,075  
    Deferred revenue     15,847       20,972       16,704  
    Operating lease liabilities     8,363       8,512       8,422  
    Total current liabilities     131,345       129,176       131,095  
    Term loan, less current portion, net of unamortized issuance costs     12,208       12,488       13,314  
    Long-term operating lease liabilities     17,550       19,731       25,334  
    Deferred grant     18,000       18,000       18,000  
    Other liabilities     19,344       19,378       10,247  
    Total liabilities     198,447       198,773       197,990  
                 
    Stockholders’ equity:            
    Common stock     77       77       77  
    Additional paid-in capital     837,586       845,466       861,448  
    Accumulated other comprehensive loss     (10,840 )     (1,773 )     (4,052 )
    Accumulated income     120,945       111,240       51,331  
    Total stockholders’ equity     947,768       955,010       908,804  
    Total liabilities and stockholders’ equity   $ 1,146,215     $ 1,153,783     $ 1,106,794  

    About our Non-GAAP Financial Measures:

    We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” and “Reconciliation of Cash Provided by Operating Activities to non-GAAP Free Cash Flow” included in this press release.

    Source: FormFactor, Inc.
    FORM-F

    Investor Contact:
    Stan Finkelstein
    Investor Relations
    (925) 290-4273
    ir@formfactor.com

    The MIL Network –

  • MIL-OSI: ATIF Holdings Limited Announces Closing of $2.5 Million Registered Direct Offering and Private Placement

    Source: GlobeNewswire (MIL-OSI)

    LAKE FOREST, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) — ATIF Holdings Limited (Nasdaq: ZBAI) (the “Company”), a Lake Forest-based business consulting company that specializes in providing professional IPO, M&A advisory and post-IPO compliance services to small and medium-sized companies seeking to go public on a stock exchange in the United States, today announced the closing of its previously announced registered direct offering and concurrent private placement with an institutional investor. The Company issued ordinary shares and pre-funded warrants (“Pre-Funded Warrants”) in a registered direct offering. In a concurrent private placement, the Company also issued to the same investor warrants to purchase ordinary shares (the “Warrants”). Aggregate gross proceeds to the Company from both transactions were approximately $2.5 million. The transactions closed on February 5, 2025.

    The transactions consisted of the sale of 1,580,000 ordinary shares (each a “Share”) Pre-Funded Warrants to purchase 887,553 Shares, each of which was sold together with one Warrant to purchase one Share at an exercise price of $1.20. The offering price per Share was $1.00 (or $0.99 for each Pre-Funded Warrant, which is equal to the offering price per Share minus an exercise price of $0.01 per Pre-Funded Warrant). The Pre-Funded Warrants are immediately exercisable and may be exercised at any time until exercised in full.

    The Company expects to use the net proceeds from the offerings, together with its existing cash, for general corporate purposes and working capital.

    R. F. Lafferty & Co., Inc. acted as exclusive placement agent for the offerings. Hunter Taubman Fischer & Li LLC acted as counsel to the Company. Lucosky Brookman LLP acted as counsel to R. F. Lafferty & Co., Inc.

    The registered direct offering was made pursuant to an effective shelf registration statement on Form S-3 (No. 333-268927) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on March 21, 2023. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering was filed with the SEC and is available on the SEC’s website located at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting R. F. Lafferty & Co., Inc by email at offerings@rflafferty.com or via standard mail to R. F. Lafferty & Co., Inc, 40 Wall Street, 27th Floor, New York, NY10005.

    The offer and sale of the securities in the private placement were made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The securities were offered only to accredited investors. Pursuant to the securities purchase agreement with the investor, the Company has agreed to file one or more registration statements with the SEC covering the resale of the ordinary shares issuable upon exercise of the Warrants.

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About ZBAI

    ATIF Holdings Limited (NASDAQ: ZBAI) is a Lake Forest-based business consulting company that specializes in providing professional IPO, M&A advisory and post-IPO compliance services to small and medium-sized companies seeking to go public on a stock exchange in the United States. The company has a proven track record in successfully delivering comprehensive U.S. IPO consulting services to clients primarily in the United States but also internationally. The mission of ZBAI is to provide one-stop, comprehensive consulting services that guide clients through the complex and often challenging process of going public. ZBAI recognizes the complexity and challenges associated with the process of going public, and endeavors to simplify it while ensuring optimal outcomes for its clients through its comprehensive consulting services. ZBAI has been awarded the “Golden Bauhinia Award”, the highest award in the financial and securities industry in Hong Kong, for “Top 10 Best Listed Companies”. 

    Forward-Looking Statements

    Certain statements in this press release are “forward-looking statements” within the meaning of the “safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, “estimated,” “projected,” Words such as “expect”, “anticipate”, “predict”, “plan”, “intend”, “believe”, “seek”, “may”, “will”, “should”, “future”, “propose” and variations of these words or similar expressions (or the opposite of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements do not guarantee future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control and may cause actual results or achievements to differ materially from those discussed in the forward-looking statements. Important factors include future financial and operating results, including revenues, income, expenses, cash balances and other financial items; Ability to manage growth and expansion; Current and future economic and political conditions; The ability to compete in industries with low barriers to entry; The ability to obtain additional financing to fund capital expenditure in the future. Ability to attract new customers and further enhance brand awareness; Ability to hire and retain qualified management and key staff; Trends and competition in the financial advisory services industry; Pandemic or epidemic disease; Except as required by law, the Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, the Company cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the expected results expressed or implied by the forward-looking statements we make. You should not interpret forward-looking statements as predictions of future events. Forward-looking statements represent only the beliefs and assumptions of our management as of the date such statements are made. The above forward-looking statements are made as of the date of this press release.

    Contact Information
    kenny@atifchina.com

    The MIL Network –

  • MIL-OSI: AMSC Reports Third Quarter Fiscal Year 2024 Financial Results and Provides Business Outlook

    Source: GlobeNewswire (MIL-OSI)

      Third Quarter Financial Highlights:
      • Increased Revenue by 56% Year Over Year to Above $60 Million
    • Net Income of over $2 Million
    • Generated nearly $6 Million of Operating Cash Flow

    Company to host conference call tomorrow, February 6, at 10:00 am ET 

    AYER, Mass., Feb. 05, 2025 (GLOBE NEWSWIRE) — AMSC (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability and resiliency of our Navy’s fleet, today reported financial results for its third quarter of fiscal year 2024 ended December 31, 2024.

    Revenues for the third quarter of fiscal 2024 were $61.4 million compared with $39.4 million for the same period of fiscal 2023. The year-over-year increase was driven by organic growth and the acquisition of NWL, Inc. 

    AMSC’s net income for the third quarter of fiscal 2024 was $2.5 million, or $0.07 per share, compared to a net loss of $1.6 million, or $0.06 per share, for the same period of fiscal 2023. The Company’s non-GAAP net income for the third quarter of fiscal 2024 was $6.0 million, or $0.16 per share, compared with a non-GAAP net income of $0.9 million, or $0.03 per share, in the same period of fiscal 2023. Please refer to the financial table below for a reconciliation of GAAP to non-GAAP results.

    Cash, cash equivalents, and restricted cash on December 31, 2024, totaled $80.0 million, compared with $74.8 million at September 30, 2024.

    “AMSC delivered the best quarterly results in years. Fiscal third quarter revenue surpassed $60 million, that’s revenue growth of 56% when compared to the same period last year, and net income exceeded $2 million, making it our second consecutive quarter of reporting net income,” said Daniel P. McGahn, Chairman, President and CEO, AMSC. “Bookings and backlog during the quarter continued to be robust. We believe our company’s diverse bookings and strengthened balance sheet allow us to seize opportunities in new markets and extend our customer reach. We are proud of these results and remain focused on driving execution and strong performance as we move into the fourth fiscal quarter of the year.”

    Business Outlook
    For the fourth quarter ending March 31, 2025, AMSC expects that its revenues will be in the range of $59.0 million to $63.0 million. The Company’s net loss for the fourth quarter of fiscal 2024 is expected not to exceed $1.0 million, or $0.03 per share. The Company’s non-GAAP net income (as defined below) is expected to exceed $2.5 million, or $0.07 per share.

    Conference Call Reminder
    In conjunction with this announcement, AMSC management will participate in a conference call with investors beginning at 10:00 a.m. Eastern Time on Thursday, February 6, 2025, to discuss the Company’s financial results and business outlook. Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at https://ir.amsc.com. The live call can be accessed by dialing 1-844-481-2802 or 1-412-317-0675 and asking to join the AMSC call. A replay of the call may be accessed 2 hours following the call by dialing 1-877-344-7529 and using conference passcode 9514460.

    About AMSC (Nasdaq: AMSC)
    AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance.  Through its Marinetec™ Solutions, AMSC provides ship protection systems and is developing propulsion and power management solutions designed to help fleets increase system efficiencies, enhance power quality and boost operational safety.  Through its Windtec® Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. The Company’s solutions are enhancing the performance and reliability of power networks, increasing the operational safety of navy fleets, and powering gigawatts of renewable energy globally. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit www.amsc.com.

    AMSC, American Superconductor, D-VAR, D-VAR VVO, Gridtec, Marinetec, Windtec, Neeltran, NEPSI, Smarter, Cleaner … Better Energy, and Orchestrate the Rhythm and Harmony of Power on the Grid are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this release regarding execution of our goals and strategies; backlog; expectations regarding the fourth quarter of fiscal 2024; our expected GAAP and non-GAAP financial results for the quarter ending March 31, 2025; and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include, but are not limited to: We have a history of operating losses, which may continue in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; We have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; Changes in exchange rates could adversely affect our results of operations; We may be required to issue performance bonds or provide letters of credit, which restricts our ability to access any cash used as collateral for the bonds or letters of credit; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may not realize all of the sales expected from our backlog of orders and contracts; Our contracts with the U.S. government are subject to audit, modification or termination by the U.S. government and include certain other provisions in favor of the government. The continued funding of such contracts remains subject to annual congressional appropriation, which, if not approved, could reduce our revenue and lower or eliminate our profit; Changes in U.S. government defense spending could negatively impact our financial position, results of operations, liquidity and overall business; Pandemics, epidemics or other public health crises may adversely impact our business, financial condition and results of operations; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; Uncertainty surrounding our prospects and financial condition may have an adverse effect on our customer and supplier relationship; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; A significant portion of our Wind segment revenues are derived from a single customer. If this customer’s business is negatively affected, it could adversely impact our business; Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; Our business and operations would be adversely impacted in the event of a failure or security breach of our or any critical third parties’ information technology infrastructure and networks; We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits; Failure to comply with evolving data privacy and data protection laws and regulations or to otherwise protect personal data, may adversely impact our business and financial results; Many of our revenue opportunities are dependent upon subcontractors and other business collaborators; If we fail to implement our business strategy successfully, our financial performance could be harmed; Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share; Many of our customers outside of the United States may be either directly or indirectly related to governmental entities, and we could be adversely affected by violations of the United States Foreign Corrupt Practices Act and similar worldwide anti-bribery laws outside the United States; We have had limited success marketing and selling our superconductor products and system-level solutions, and our failure to more broadly market and sell our products and solutions could lower our revenue and cash flow; We or third parties on whom we depend may be adversely affected by natural disasters, including events resulting from climate change, and our business continuity and disaster recovery plans may not adequately protect us or our value chain from such events; Adverse changes in domestic and global economic conditions could adversely affect our operating results; Our international operations are subject to risks that we do not face in the United States, which could have an adverse effect on our operating results; Our products face competition, which could limit our ability to acquire or retain customers; We have operations in, and depend on sales in, emerging markets, including India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these markets. Changes in India’s political, social, regulatory and economic environment may affect our financial performance; Our success depends upon the commercial adoption of the REG system, which is currently limited, and a widespread commercial market for our products may not develop; Industry consolidation could result in more powerful competitors and fewer customers; Increasing focus and scrutiny on environmental sustainability and social initiatives could increase our costs, and inaction could harm our reputation and adversely impact our financial results; Growth of the wind energy market depends largely on the availability and size of government subsidies, economic incentives and legislative programs designed to support the growth of wind energy: Lower prices for other energy sources may reduce the demand for wind energy development, which could have a material adverse effect on our ability to grow our Wind business; We may be unable to adequately prevent disclosure of trade secrets and other proprietary information; Our patents may not provide meaningful or long-term protection for our technology, which could result in us losing some or all of our market position; There are a number of technological challenges that must be successfully addressed before our superconductor products can gain widespread commercial acceptance, and our inability to address such technological challenges could adversely affect our ability to acquire customers for our products; Third parties have or may acquire patents that cover the materials, processes and technologies we use or may use in the future to manufacture our Amperium products, and our success depends on our ability to license such patents or other proprietary rights; Our common stock has experienced, and may continue to experience, market price and volume fluctuations, which may prevent our stockholders from selling our common stock at a profit and could lead to costly litigation against us that could divert our management’s attention; Unfavorable results of legal proceedings could have a material adverse effect on our business, operating results and financial condition; and the other important factors discussed under the caption “Risk Factors” in Part 1. Item 1A of our Form 10-K for the fiscal year ended March 31, 2024, and our other reports filed with the SEC. These important factors, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
                 
        Three Months Ended     Nine Months Ended  
        December 31,     December 31,  
        2024     2023     2024     2023  
    Revenues                                
    Grid   $ 52,306     $ 33,603     $ 131,578     $ 87,854  
    Wind     9,097       5,750       24,585       15,757  
    Total revenues     61,403       39,353       156,163       103,611  
                                     
    Cost of revenues     45,077       29,369       112,000       78,759  
                                     
    Gross margin     16,326       9,984       44,163       24,852  
                                     
    Operating expenses:                                
    Research and development     3,000       2,199       7,932       5,693  
    Selling, general and administrative     11,567       7,833       30,990       23,648  
    Amortization of acquisition-related intangibles     444       538       1,289       1,614  
    Change in fair value of contingent consideration     —       852       6,682       3,052  
    Restructuring     —       —       —       (14 )
    Total operating expenses     15,011       11,422       46,893       33,993  
                                     
    Operating income (loss)     1,315       (1,438 )     (2,730 )     (9,141 )
                                     
    Interest income, net     802       150       2,901       518  
    Other income (expense), net     272       (298 )     (214 )     (618 )
    Income (loss) before income tax expense (benefit)     2,389       (1,586 )     (43 )     (9,241 )
                                     
    Income tax (benefit) expense     (76 )     63       (4,871 )     291  
                                     
    Net income (loss)   $ 2,465     $ (1,649 )   $ 4,828     $ (9,532 )
                                     
    Net income (loss) per common share                                
    Basic   $ 0.07     $ (0.06 )   $ 0.13     $ (0.33 )
    Diluted   $ 0.06     $ (0.06 )   $ 0.13     $ (0.33 )
                                     
    Weighted average number of common shares outstanding                                
    Basic     37,661       29,092       36,766       28,728  
    Diluted     38,463       29,092       37,457       28,728  
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except per share data)    		  
                 
        December 31, 2024     March 31, 2024  
    ASSETS                
    Current assets:                
    Cash and cash equivalents   $ 75,203     $ 90,522  
    Accounts receivable, net     44,135       26,325  
    Inventory, net     74,588       41,857  
    Prepaid expenses and other current assets     10,194       7,295  
    Restricted cash     1,314       468  
    Total current assets     205,434       166,467  
                     
    Property, plant and equipment, net     38,390       10,861  
    Intangibles, net     6,622       6,369  
    Right-of-use assets     4,050       2,557  
    Goodwill     48,950       43,471  
    Restricted cash     3,523       1,290  
    Deferred tax assets     1,155       1,119  
    Equity-method investments     1,397       —  
    Other assets     757       637  
    Total assets   $ 310,278     $ 232,771  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
                     
    Current liabilities:                
    Accounts payable and accrued expenses   $ 29,425     $ 24,235  
    Lease liability, current portion     675       716  
    Debt, current portion     —       25  
    Contingent consideration     —       3,100  
    Deferred revenue, current portion     74,325       50,732  
    Total current liabilities     104,425       78,808  
                     
    Deferred revenue, long term portion     9,003       7,097  
    Lease liability, long term portion     2,725       1,968  
    Deferred tax liabilities     1,423       300  
    Other liabilities     26       27  
    Total liabilities     117,602       88,200  
                     
    Stockholders’ equity:                
    Common stock, $0.01 par value, 75,000,000 shares authorized; 39,863,084 and 37,343,812 shares issued and 39,459,733 and 36,946,181 shares outstanding at December 31, 2024 and March 31, 2024, respectively     399       373  
    Additional paid-in capital     1,256,210       1,212,913  
    Treasury stock, at cost, 403,351 and 397,631 at December 31, 2024 and March 31, 2024, respectively     (3,765 )     (3,639 )
    Accumulated other comprehensive income     1,662       1,582  
    Accumulated deficit     (1,061,830 )     (1,066,658 )
    Total stockholders’ equity     192,676       144,571  
    Total liabilities and stockholders’ equity   $ 310,278     $ 232,771  
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)    		  
       
        Nine Months Ended December 31,  
        2024     2023  
    Cash flows from operating activities:                
                     
    Net income (loss)   $ 4,828     $ (9,532 )
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:                
    Depreciation and amortization     3,984       3,360  
    Stock-based compensation expense     4,933       3,608  
    Provision for excess and obsolete inventory     1,186       1,536  
    Amortization of operating lease right-of-use assets     753       457  
    Deferred income taxes     (5,171 )     3  
    Earnings from equity method investments     (152 )     —  
    Change in fair value of contingent consideration     6,682       3,052  
    Other non-cash items     (177 )     494  
    Changes in operating asset and liability accounts:                
    Accounts receivable     (1,650 )     5,945  
    Inventory     (10,836 )     (8,737 )
    Prepaid expenses and other assets     (1,658 )     6,682  
    Operating leases     (1,531 )     (450 )
    Accounts payable and accrued expenses     118       (15,409 )
    Deferred revenue     20,686       8,894  
    Net cash provided by (used in) operating activities     21,995       (97 )
                     
    Cash flows from investing activities:                
    Purchases of property, plant and equipment     (1,376 )     (635 )
    Cash paid to settle contingent consideration liabilities     (3,278 )     —  
    Cash paid for acquisition, net of cash acquired     (29,577 )     —  
    Change in other assets     167       (8 )
    Net cash used in investing activities     (34,064 )     (643 )
                     
    Cash flows from financing activities:                
    Repurchase of treasury stock     (126 )     —  
    Repayment of debt     (25 )     (49 )
    Cash paid related to registration of common stock shares     (148 )     —  
    Proceeds from exercise of employee stock options and ESPP     157       136  
    Net cash (used in) provided by financing activities     (142 )     87  
                     
    Effect of exchange rate changes on cash     (29 )     3  
                     
    Net decrease in cash, cash equivalents and restricted cash     (12,240 )     (650 )
    Cash, cash equivalents and restricted cash at beginning of period     92,280       25,675  
    Cash, cash equivalents and restricted cash at end of period   $ 80,040     $ 25,025  
    RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
    (In thousands, except per share data)
    		  
                 
        Three Months Ended December 31,     Nine Months Ended December 31,  
        2024     2023     2024     2023  
    Net income (loss)   $ 2,465     $ (1,649 )   $ 4,828     $ (9,532 )
    Stock-based compensation     2,861       1,140       4,933       3,608  
    Acquisition costs     15       —       1,095       —  
    Amortization of acquisition-related intangibles     706       538       1,727       1,620  
    Change in fair value of contingent consideration     —       852       6,682       3,052  
    Non-GAAP net income (loss)   $ 6,047     $ 881     $ 19,265     $ (1,252 )
                                     
    Non-GAAP net income (loss) per share – basic   $ 0.16     $ 0.03     $ 0.52     $ (0.04 )
    Non-GAAP net income (loss) per share – diluted   $ 0.16     $ 0.03     $ 0.51     $ (0.04 )
    Weighted average shares outstanding – basic     37,661       29,092       36,766       28,728  
    Weighted average shares outstanding – diluted     38,463       29,428       37,457       28,728  
    Reconciliation of Forecast GAAP Net Loss to Non-GAAP Net Income
    (In millions, except per share data)
           
        Three Months Ending  
        March 31, 2025  
    Net loss   $ (1.0 )
    Stock-based compensation     2.8  
    Amortization of acquisition-related intangibles     0.7  
    Non-GAAP net income   $ 2.5  
    Non-GAAP net income per share   $ 0.07  
    Shares outstanding     37.9  
             

    Note: Non-GAAP net income (loss) is defined by the Company as net income (loss) before stock-based compensation; amortization of acquisition-related intangibles; acquisition costs; change in fair value of contingent consideration, other non-cash or unusual charges, and the tax effect of adjustments calculated at the relevant rate for our non-GAAP metric. The Company believes non-GAAP net income (loss) and non-GAAP net income (loss) per share assist management and investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding these non-cash, non-recurring or other charges that it does not believe are indicative of its core operating performance. Actual GAAP and non-GAAP net loss for the fiscal quarter ending March 31, 2025, including the above adjustments, may differ materially from those forecasted in the table above. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measure included in this release, however, should be considered in addition to, and not as a substitute for or superior to, operating income or other measures of financial performance prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP net income (loss) is set forth in the table above.

    AMSC Contacts
    Investor Relations Contact:
    LHA Investor Relations
    Carolyn Capaccio
    (212) 838-3777
    amscIR@lhai.com

    Public Relations Contact:
    RooneyPartners
    Joe Luongo
    (914) 906-5903

    AMSC Director, Communications:
    Nicol Golez
    978-399-8344
    Nicol.Golez@amsc.com

    The MIL Network –

  • MIL-OSI: LPL Financial to present at the Bank of America Securities Financial Services Conference

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Feb. 05, 2025 (GLOBE NEWSWIRE) — LPL Financial LLC today announced that Rich Steinmeier, Chief Executive Officer, will present at the Bank of America Securities Financial Services Conference on February 12.

    The presentation takes place at 11:20 a.m. ET. A live audio webcast of the presentation will be accessible at investor.lpl.com, with a replay available on the website after the presentation.

    Contacts

    Investor Relations
    investor.relations@lplfinancial.com

    Media Relations
    media.relations@lplfinancial.com

    About LPL Financial

    LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

    Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”) or its affiliate LPL Enterprise, LLC (“LPL Enterprise”), both registered investment advisors and broker-dealers. Member FINRA/SIPC. LPL Financial serves as the clearing and carrying firm for accounts LPL Enterprise introduces to it.

    LPL Financial and LPL Enterprise provide financial services only from the United States.

    Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

    We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

    The MIL Network –

  • MIL-OSI: Tactile Medical to Release Fourth Quarter and Fiscal Year 2024 Financial Results on February 18, 2025

    Source: GlobeNewswire (MIL-OSI)

    MINNEAPOLIS, Feb. 05, 2025 (GLOBE NEWSWIRE) — Tactile Systems Technology, Inc. (“Tactile Medical”; the “Company”) (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today announced that fourth quarter and fiscal year 2024 financial results will be released after the market closes on Tuesday, February 18, 2025.

    Management will host a conference call with a question and answer session at 5:00 p.m. Eastern Time on February 18, 2025, to discuss the results of the quarter and fiscal year. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13751026. A live webcast of the call will also be provided on the investor relations section of the Company’s website at investors.tactilemedical.com.

    For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13751026. The webcast will be archived at investors.tactilemedical.com.

    About Tactile Systems Technology, Inc. (DBA Tactile Medical)

    Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic pulmonary disease by helping them live better and care for themselves at home. Tactile Medical collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.

    Investor Inquiries:
    Sam Bentzinger
    Gilmartin Group
    investorrelations@tactilemedical.com

    The MIL Network –

  • MIL-OSI: Remitly to Report Fourth Quarter and Full Year 2024 Financial Results on February 19, 2025

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Feb. 05, 2025 (GLOBE NEWSWIRE) — Remitly Global, Inc. (NASDAQ: RELY) (“Remitly”), a trusted provider of digital financial services that transcend borders, today announced that it will report fourth quarter and full year 2024 financial results after the market close on Wednesday, February 19, 2025. Management will host a conference call and live webcast to present the Company’s financial results and answer questions from the financial analyst community at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time that same evening. Conference call and webcast information can be found below.

    Remitly Fourth Quarter and Full Year 2024 Financial Results Conference Call and Webcast Information:
    When: Wednesday, February 19th, 2025
    Time: 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time

    Toll-Free Dial-in: To access the call, please use the following link: Remitly 4Q 2024 Earnings Call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, the Company suggests registering a minimum of 10 minutes before the start of the call.

    Live Webcast and Replay: A live webcast and replay of the call will be accessible from the Investor Relations section of the Company’s website at https://ir.remitly.com/. For those not planning to ask a question of management, the Company recommends listening via the webcast.

    About Remitly
    Remitly is a trusted provider of digital financial services that transcend borders. With a global footprint spanning more than 170 countries, Remitly’s digitally native, cross-border payments app delights customers with a fast, reliable, and transparent money movement experience. Building on its strong foundation, Remitly is expanding its suite of products to further its vision and transform lives around the world.

    Investor Relations Contact:

    Stephen Shulstein
    Vice President of Investor Relations
    stephens@remitly.com

    Media Contact:

    Kendall Sadler
    Director of Communications
    kendall@remitly.com
    SOURCE Remitly Global, Inc.

    The MIL Network –