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  • MIL-OSI: Mercury Systems Reports Second Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    • Q2 FY25 Bookings of $242.4 million; book-to-bill ratio of 1.09
    • Record backlog of $1.4 billion; up 6% year-over-year
    • Q2 FY25 Revenue of $223.1 million; GAAP net loss of $17.6 million; and adjusted EBITDA of $22.0 million
    • Record Operating Cash Flow of $85.5 million with Free Cash Flow of $81.9 million

    ANDOVER, Mass., Feb. 04, 2025 (GLOBE NEWSWIRE) — Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), reported operating results for the second quarter of fiscal year 2025, ended December 27, 2024.

    “We delivered solid results in the second quarter of fiscal 2025 that were once again in line with or ahead of our expectations, and I’m optimistic about our ongoing efforts to improve performance as we move through the fiscal year,” said Bill Ballhaus, Mercury’s Chairman and CEO.

    “In the quarter we secured bookings of $242.4 million, for a trailing-twelve-month book-to-bill of 1.12; revenue of $223.1 million, up 13% year-over-year; adjusted EBITDA of $22.0 million and adjusted EBITDA margin of 9.9%, both up substantially year-over-year; and record free cash flow of $81.9 million, up $44.4 million year-over-year. These results reflect continued progress in each of our four priority areas, highlighted by solid execution across our broad portfolio of production and development programs, a record backlog of $1.4 billion, reduced operating expenses enabling increased positive operating leverage, and continued progress on free cash flow drivers, with net working capital down $114.9 million year-over-year.”

    Second Quarter Fiscal 2025 Results

    Total Company second quarter fiscal 2025 revenues were $223.1 million, compared to $197.5 million in the second quarter of fiscal 2024.

    Total bookings for the second quarter of fiscal 2025 were $242.4 million, yielding a book-to-bill ratio of 1.09 for the quarter.

    Total Company GAAP net loss and loss per share for the second quarter of fiscal 2025 were $17.6 million, and $0.30, respectively, compared to GAAP net loss and loss per share of $45.6 million, and $0.79, respectively, for the second quarter of fiscal 2024. Adjusted earnings (loss) per share (“adjusted EPS”) was $0.07 per share for the second quarter of fiscal 2025, compared to $(0.42) per share in the second quarter of fiscal 2024.

    Second quarter fiscal 2025 adjusted EBITDA for the total Company was $22.0 million, compared to $(21.3) million for the second quarter of fiscal 2024.

    Cash flows provided by operating activities in the second quarter of fiscal 2025 were $85.5 million, compared to $45.5 million in the second quarter of fiscal 2024. Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $81.9 million for the second quarter of fiscal 2025 and $37.5 million for the second quarter of fiscal 2024.

    Backlog

    Mercury’s total backlog at December 27, 2024 was $1.4 billion, an approximate $80.0 million increase from a year ago. Of the December 27, 2024 total backlog, $789.9 million represents orders expected to be recognized as revenue within the next 12 months.

    Conference Call Information

    Management will host a conference call and simultaneous webcast at 5:00 p.m. ET on Tuesday, February 4, 2025, to discuss Mercury’s quarterly financial results, business highlights and outlook. In addition, Company representatives may answer questions concerning business and financial developments and trends, the Company’s view on earnings forecasts, and other business and financial matters affecting the Company, the responses to which may contain information that has not been previously disclosed.

    To attend the conference call or webcast, participants should register online at ir.mrcy.com/events-presentations. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. A replay of the webcast will be available two hours after the call and archived on the same web page for six months.

    Use of Non-GAAP Financial Measures
    In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides adjusted EBITDA, adjusted income, adjusted earnings per share (“adjusted EPS”) and free cash flow, which are non-GAAP financial measures. Adjusted EBITDA, adjusted income, and adjusted EPS exclude certain non-cash and other specified charges. The Company believes these non-GAAP financial measures are useful to help investors understand its past financial performance and prospects for the future. However, these non-GAAP measures should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. Management believes these non-GAAP measures assist in providing a more complete understanding of the Company’s underlying operational results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company’s business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. A reconciliation of GAAP to non-GAAP financial results discussed in this press release is contained in the attached exhibits.

    Mercury Systems – Innovation that Matters®
    Mercury Systems is a technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has 23 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)

    Investors and others should note that we announce material financial information using our website (www.mrcy.com), SEC filings, press releases, public conference calls, webcasts, and social media, including X (X.com/mrcy) and LinkedIn (www.linkedin.com/company/mercury-systems). Therefore, we encourage investors and others interested in Mercury to review the information we post on the social media and other communication channels listed on our website.

    Forward-Looking Safe Harbor Statement

    This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company’s focus on enhanced execution of the Company’s strategic plan under a refreshed Board and leadership team. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company’s products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, such as the deductibility of internal research and development, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

    Contact:
    Tyler Hojo, CFA, Vice President of Investor Relations
    Mercury Systems, Inc.
    978-967-3676

    Mercury Systems and Innovation That Matters are registered trademarks of Mercury Systems, Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.

    MERCURY SYSTEMS, INC.  
    UNAUDITED CONSOLIDATED BALANCE SHEETS  
    (In thousands)      
      December 27,   June 28,
        2024       2024  
           
    Assets      
    Current assets:      
    Cash and cash equivalents $ 242,565     $ 180,521  
    Accounts receivable, net   104,491       111,441  
    Unbilled receivables and costs in excess of billings, net   278,657       304,029  
    Inventory   344,415       335,300  
    Prepaid expenses and other current assets   20,556       22,493  
    Total current assets   990,684       953,784  
           
    Property and equipment, net   111,459       110,353  
    Goodwill   938,093       938,093  
    Intangible assets, net   226,142       250,512  
    Operating lease right-of-use assets, net   56,525       60,860  
    Deferred tax asset   71,712       58,612  
    Other non-current assets   6,840       6,691  
    Total assets $ 2,401,455     $ 2,378,905  
           
    Liabilities and Shareholders’ Equity      
    Current liabilities:      
    Accounts payable $ 64,778     $ 81,068  
    Accrued expenses   40,471       42,926  
    Accrued compensation   32,015       36,398  
    Income taxes payable   306       109  
    Deferred revenues and customer advances   135,963       73,915  
    Total current liabilities   273,533       234,416  
           
    Income taxes payable   7,713       7,713  
    Long-term debt   591,500       591,500  
    Operating lease liabilities   57,805       62,584  
    Other non-current liabilities   10,628       9,917  
    Total liabilities   941,179       906,130  
           
    Shareholders’ equity:      
    Preferred stock   —       —  
    Common stock   587       581  
    Additional paid-in capital   1,266,926       1,242,402  
    Retained earnings   184,695       219,799  
    Accumulated other comprehensive income   8,068       9,993  
    Total shareholders’ equity   1,460,276       1,472,775  
    Total liabilities and shareholders’ equity $ 2,401,455     $ 2,378,905  
    MERCURY SYSTEMS, INC.
    UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS        
    (In thousands, except per share data)
      Second Quarters Ended   Six Months Ended
      December 27, 2024   December 29, 2023   December 27, 2024   December 29, 2023
    Net revenues $ 223,125     $ 197,463     $ 427,556     $ 378,454  
    Cost of revenues(1)   162,299       165,943       314,940       296,407  
    Gross margin   60,826       31,520       112,616       82,047  
                   
    Operating expenses:              
    Selling, general and administrative(1)   40,501       44,470       73,654       80,264  
    Research and development(1)   21,368       28,476       39,751       60,348  
    Amortization of intangible assets   11,154       12,270       22,389       24,817  
    Restructuring and other charges   40       2       2,300       9,548  
    Acquisition costs and other related expenses   178       231       355       1,200  
    Total operating expenses   73,241       85,449       138,449       176,177  
                   
    Loss from operations   (12,415 )     (53,929 )     (25,833 )     (94,130 )
                   
    Interest income   406       29       950       132  
    Interest expense   (8,430 )     (8,674 )     (17,336 )     (16,537 )
    Other expense, net   (3,865 )     (1,148 )     (5,204 )     (2,922 )
                   
    Loss before income tax benefit   (24,304 )     (63,722 )     (47,423 )     (113,457 )
    Income tax benefit   (6,725 )     (18,141 )     (12,319 )     (31,168 )
    Net loss $ (17,579 )   $ (45,581 )   $ (35,104 )   $ (82,289 )
                   
    Basic net loss per share $ (0.30 )   $ (0.79 )   $ (0.60 )   $ (1.44 )
                   
    Diluted net loss per share $ (0.30 )   $ (0.79 )   $ (0.60 )   $ (1.44 )
                   
    Weighted-average shares outstanding:              
    Basic   58,561       57,424       58,454       57,314  
    Diluted   58,561       57,424       58,454       57,314  
                   
    (1) Includes stock-based compensation expense, allocated as follows:
    Cost of revenues $ (167 )   $ 4     $ (54 )   $ 820  
    Selling, general and administrative $ 6,317     $ 5,742     $ 10,928     $ 7,503  
    Research and development $ 1,812     $ 1,640     $ 3,180     $ 3,180  
    MERCURY SYSTEMS, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
      Second Quarters Ended   Six Months Ended
      December 27, 2024   December 29, 2023   December 27, 2024   December 29, 2023
    Cash flows from operating activities:              
    Net loss $ (17,579 )   $ (45,581 )   $ (35,104 )   $ (82,289 )
    Depreciation and amortization   20,922       22,193       42,142       44,885  
    Other non-cash items, net   5,083       1,640       10,685       (2,011 )
    Cash settlement for termination of interest rate swap   —       —       —       7,403  
    Changes in operating assets and liabilities   77,036       67,242       53,079       38,438  
                   
    Net cash provided by operating activities   85,462       45,494       70,802       6,426  
                   
    Cash flows from investing activities:              
    Purchases of property and equipment $ (3,555 )   $ (7,990 )   $ (9,791 )   $ (16,005 )
    Other investing activities   1,900       —       1,900       —  
                   
    Net cash used in investing activities   (1,655 )     (7,990 )     (7,891 )     (16,005 )
                   
    Cash flows from financing activities:              
    Proceeds from employee stock plans   1,492       3,163       1,492       3,163  
    Borrowings under credit facilities   —       40,000       —       105,000  
    Payments of deferred financing and offering costs   —       (1,931 )     (2,249 )     (1,931 )
    Payments for retirement of common stock   —       (15 )     —       (15 )
                   
    Net cash provided by (used in) financing activities   1,492       41,217       (757 )     106,217  
                   
    Effect of exchange rate changes on cash and cash equivalents   (857 )     556       (110 )     445  
                   
    Net increase in cash and cash equivalents   84,442       79,277       62,044       97,083  
                   
    Cash and cash equivalents at beginning of period   158,123       89,369       180,521       71,563  
                   
    Cash and cash equivalents at end of period $ 242,565     $ 168,646     $ 242,565     $ 168,646  
    UNAUDITED SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES
    (In thousands)            
                 

    Adjusted EBITDA, a non-GAAP measure for reporting financial performance, excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company’s business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:

    Other non-operating adjustments. The Company records other non-operating adjustments such as gains or losses on foreign currency remeasurement, investments and fixed asset sales or disposals among other adjustments. These adjustments may vary from period to period without any direct correlation to underlying operating performance.

    Interest income and expense. The Company receives interest income on investments and incurs interest expense on loans, financing leases and other financing arrangements. These amounts may vary from period to period due to changes in cash and debt balances and interest rates driven by general market conditions or other circumstances which may be outside of the normal course of the Company’s operations.

    Income taxes. The Company’s GAAP tax expense can fluctuate materially from period to period due to tax adjustments that are not directly related to underlying operating performance or to the current period of operations.

    Depreciation. The Company incurs depreciation expense related to capital assets purchased to support the ongoing operations of the business. These assets are recorded at cost or fair value and are depreciated using the straight-line method over the useful life of the asset. Purchases of such assets may vary significantly from period to period and without any direct correlation to underlying operating performance.

    Amortization of intangible assets. The Company incurs amortization of intangible assets primarily as a result of acquired intangible assets such as backlog, customer relationships and completed technologies but also due to licenses, patents and other arrangements. These intangible assets are valued at the time of acquisition or upon receipt of right to use the asset, amortized over the requisite life and generally cannot be changed or influenced by management after acquisition.

    Restructuring and other charges. The Company incurs restructuring and other charges in connection with management’s decisions to undertake certain actions to realign operating expenses through workforce reductions and the closure of certain Company facilities, businesses and product lines. The Company’s adjustments reflected in restructuring and other charges are typically related to acquisitions and organizational redesign programs initiated as part of discrete post-acquisition integration activities. Management believes these items are non-routine and may not be indicative of ongoing operating results.

    Impairment of long-lived assets. The Company incurs impairment charges of long-lived assets based on events that may or may not be within the control of management. Management believes these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

    Acquisition, financing and other third party costs. The Company incurs transaction costs related to acquisition and potential acquisition opportunities, such as legal, accounting, and other third party advisory fees. The Company may also incur third party costs, such as legal, banking, communications, proxy solicitation, and other third party advisory fees in connection with engagements by activist investors or unsolicited acquisition offers. Although the Company may incur such third party costs and other related charges and adjustments, it is not indicative that any transaction will be consummated. Additionally, the Company incurs unused revolver and bank fees associated with maintaining its credit facility as well as non-cash financing expenses associated with obtaining its credit facility. Management believes these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

    Fair value adjustments from purchase accounting. As a result of applying purchase accounting rules to acquired assets and liabilities, certain fair value adjustments are recorded in the opening balance sheet of acquired companies. These adjustments are then reflected in the Company’s income statements in periods subsequent to the acquisition. In addition, the impact of any changes to originally recorded contingent consideration amounts are reflected in the income statements in the period of the change. Management believes these items are outside the normal operations of the Company and are not indicative of ongoing operating results.

    Litigation and settlement income and expense. The Company periodically receives income and incurs expenses related to pending claims and litigation and associated legal fees and potential case settlements and/or judgments. Although the Company may incur such costs and other related charges and adjustments, it is not indicative of any particular outcome until the matter is fully resolved. Management believes these items are outside the normal operations of the Company’s business, often occur in periods other than the period of activity, and are not indicative of ongoing operating results. The Company periodically receives warranty claims from customers and makes warranty claims towards its vendors and supply chain. Management believes the expenses and gains associated with these recurring warranty items are within the normal operations and operating cycle of the Company’s business. Therefore, management deems no adjustments are necessary unless under extraordinary circumstances.

    Stock-based and other non-cash compensation expense. The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of revenues, selling, general and administrative expense and research and development expense. The Company also incurs non-cash based compensation in the form of pension related expenses and matching contributions to its defined contribution plan. Although stock-based and other non-cash compensation is an expense of the Company and viewed as a form of compensation, these expenses vary in amount from period to period, and are affected by market forces that are difficult to predict and are not within the control of management, such as the market price and volatility of the Company’s shares, risk-free interest rates and the expected term and forfeiture rates of the awards, as well as pension actuarial assumptions. Management believes that exclusion of these expenses allows comparisons of operating results to those of other companies, both public, private or foreign, that disclose non-GAAP financial measures that exclude stock-based compensation and other non-cash compensation.

    Mercury uses adjusted EBITDA as an important indicator of the operating performance of its business. Management excludes the above-described items from its internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to the Company’s board of directors, determining a portion of bonus compensation for executive officers and other key employees based on operating performance, evaluating short-term and long-term operating trends in the Company’s operations, and allocating resources to various initiatives and operational requirements. The Company believes that adjusted EBITDA permits a comparative assessment of its operating performance, relative to its performance based on its GAAP results, while isolating the effects of charges that may vary from period to period without direct correlation to underlying operating performance. The Company believes that these non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making. The Company believes that trends in its adjusted EBITDA are valuable indicators of its operating performance.

    Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the adjusted EBITDA financial adjustments described above, and investors should not infer from the Company’s presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring.

    The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure.

      Second Quarters Ended   Six Months Ended
      December 27, 2024   December 29, 2023   December 27, 2024   December 29, 2023
    Net loss $ (17,579 )   $ (45,581 )   $ (35,104 )   $ (82,289 )
    Other non-operating adjustments, net   2,549       (1,042 )     814       (311 )
    Interest expense, net   8,024       8,645       16,386       16,405  
    Income tax benefit   (6,725 )     (18,141 )     (12,319 )     (31,168 )
    Depreciation   9,768       9,923       19,753       20,068  
    Amortization of intangible assets   11,154       12,270       22,389       24,817  
    Restructuring and other charges   40       2       2,300       9,548  
    Impairment of long-lived assets   —       —       —       —  
    Acquisition, financing and other third party costs   1,109       860       3,440       2,192  
    Fair value adjustments from purchase accounting   178       178       355       355  
    Litigation and settlement expense, net   2,087       1,383       3,481       1,886  
    Stock-based and other non-cash compensation expense   11,424       10,195       21,984       19,146  
    Adjusted EBITDA $ 22,029     $ (21,308 )   $ 43,479     $ (19,351 )
     

    Free cash flow, a non-GAAP measure for reporting cash flow, is defined as cash provided by operating activities less capital expenditures for property and equipment, which includes capitalized software development costs, and, therefore, has not been calculated in accordance with GAAP. Management believes free cash flow provides investors with an important perspective on cash available for investment and acquisitions after making capital investments required to support ongoing business operations and long-term value creation. The Company believes that trends in its free cash flow are valuable indicators of its operating performance and liquidity.

    Free cash flow is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenditures similar to the free cash flow financial adjustment described above, and investors should not infer from the Company’s presentation of this non-GAAP financial measure that these expenditures reflect all of the Company’s obligations which require cash.

    The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure.

      Second Quarters Ended   Six Months Ended
      December 27, 2024   December 29, 2023   December 27, 2024   December 29, 2023
    Net cash provided by operating activities $ 85,462     $ 45,494     $ 70,802     $ 6,426  
    Purchases of property and equipment   (3,555 )     (7,990 )     (9,791 )     (16,005 )
    Free cash flow $ 81,907     $ 37,504     $ 61,011     $ (9,579 )
    UNAUDITED SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES
    (In thousands, except per share data)
     

    Adjusted income and adjusted earnings per share (“adjusted EPS”) are non-GAAP measures for reporting financial performance, exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying results and trends and allows for comparability with its peer company index and industry. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The Company uses these measures along with the corresponding GAAP financial measures to manage the Company’s business and to evaluate its performance compared to prior periods and the marketplace. The Company defines adjusted income as income before other non-operating adjustments, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition, financing and other third party costs, fair value adjustments from purchase accounting, litigation and settlement income and expense, and stock-based and other non-cash compensation expense. The impact to income taxes includes the impact to the effective tax rate, current tax provision and deferred tax provision(1). Adjusted EPS expresses adjusted income on a per share basis using weighted average diluted shares outstanding.

    The following tables reconcile the most directly comparable GAAP financial measures to the non-GAAP financial measures.

      Second Quarters Ended
      December 27, 2024   December 29, 2023
    Net loss and loss per share $ (17,579 )   $ (0.30 )   $ (45,581 )   $ (0.79 )
    Other non-operating adjustments, net   2,549           (1,042 )    
    Amortization of intangible assets   11,154           12,270      
    Restructuring and other charges   40           2      
    Impairment of long-lived assets   —           —      
    Acquisition, financing and other third party costs   1,109           860      
    Fair value adjustments from purchase accounting   178           178      
    Litigation and settlement expense, net   2,087           1,383      
    Stock-based and other non-cash compensation expense   11,424           10,195      
    Impact to income taxes(1)   (7,022 )         (2,446 )    
    Adjusted income (loss) and adjusted earnings (loss) per share(2) $ 3,940     $ 0.07     $ (24,181 )   $ (0.42 )
                   
    Diluted weighted-average shares outstanding       58,843           57,424  
                   
    (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax expense or benefit related to the items.
    (2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share or Adjusted loss per share is calculated using basic shares. There were no impact to the calculation of adjusted earnings per share as a result of this for the second quarters ended December 27, 2024 and December 29, 2023.
      Six Months Ended
      December 27, 2024   December 29, 2023
    Net loss and loss per share $ (35,104 )   $ (0.60 )   $ (82,289 )   $ (1.44 )
    Other non-operating adjustments, net   814           (311 )    
    Amortization of intangible assets   22,389           24,817      
    Restructuring and other charges   2,300           9,548      
    Impairment of long-lived assets   —           —      
    Acquisition, financing and other third party costs   3,440           2,192      
    Fair value adjustments from purchase accounting   355           355      
    Litigation and settlement expense, net   3,481           1,886      
    COVID related expenses   —           —      
    Stock-based and other non-cash compensation expense   21,984           19,146      
    Impact to income taxes(1)   (13,275 )         (13,204 )    
    Adjusted income (loss) and adjusted earnings (loss) per share(2) $ 6,384     $ 0.11     $ (37,860 )   $ (0.66 )
                   
    Diluted weighted-average shares outstanding       58,752           57,314  
                   
    (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax expense or benefit related to the items.
    (2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share is calculated using basic shares. There were no impact to the calculation of adjusted earnings per share as a result of this for the six months ended December 27, 2024 and December 29, 2023.

    The MIL Network –

  • MIL-OSI: Gibson Energy Announces Chief Financial Officer Transition

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Feb. 04, 2025 (GLOBE NEWSWIRE) — Gibson Energy Inc. (“Gibson” or the “Company”) announced that Sean Brown has stepped down today from his role as Senior Vice President and Chief Financial Officer.

    “On behalf of the Board and leadership team, I want to thank Sean for his role in building Gibson’s strong financial foundation,” said Curtis Philippon, President & Chief Executive Officer. “Also, his contributions to date to ensure a seamless transition are appreciated and I wish him the best in his future endeavors.”

    Concurrently, the Company is pleased to announce that effective immediately Riley Hicks, Senior Vice President, Corporate Development, Marketing & Strategy, will succeed Mr. Brown as Senior Vice President and Chief Financial Officer.

    “Since joining Gibson in 2018, Riley has held critical roles in several areas of the business and was the ideal choice to step into the role of Chief Financial Officer,” Mr. Philippon added. “His deep knowledge of the business and proven leadership will be instrumental in driving our financial strategy forward, delivering long-term value to shareholders and will help position Gibson for future successes.”

    Riley Hicks Biography
    Mr. Hicks joined Gibson in 2018 and most recently held the position of Senior Vice President, Corporate Development, Marketing & Strategy. Prior to this position, Riley held various leadership roles across the finance, commercial, and marketing organizations. Before joining the Company, Riley developed a comprehensive understanding of the midstream and energy sector through experience in accounting, equity research, and corporate valuation consulting for energy clients. Riley holds a Bachelor of Science in Economics degree from Trinity College, an MBA from Northeastern University, and is a member of the Chartered Professional Accountants of Canada and Alberta (CPA).

    About Gibson
    Gibson is a leading liquids infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of liquids and refined products. Headquartered in Calgary, Alberta, the Company’s operations are located across North America, with core terminal assets in Hardisty and Edmonton, Alberta, Ingleside and Wink, Texas, and a facility in Moose Jaw, Saskatchewan.

    Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.

    Forward-Looking Statements
    Certain statements contained in this press release constitute forward-looking information and statements (collectively, forward-looking statements) including, but not limited to, statements concerning Gibson’s ability to execute its corporate strategy and achieve the expected outcomes therefrom. All statements other than statements of historical fact are forward-looking statements. The use of any of the words ‘‘anticipate’’, ‘‘plan’’, ‘‘contemplate’’, ‘‘continue’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘propose’’, ‘‘might’’, ‘‘may’’, ‘‘will’’, ‘‘shall’’, ‘‘project’’, ‘‘should’’, ‘‘could’’, ‘‘would’’, ‘‘believe’’, ‘‘predict’’, ‘‘forecast’’, ‘‘pursue’’, ‘‘potential’’ and ‘‘capable’’ and similar expressions are intended to identify forward looking statements.. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The Company does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in the Company’s Annual Information Form and Management’s Discussion and Analysis, each dated February 20, 2024, as filed on SEDAR+ and available on the Gibson website at www.gibsonenergy.com.

    For further information, please contact:

    Investor Relations:
    (403) 776-3077
    investor.relations@gibsonenergy.com 

    Media Relations:
    (403) 476-6334
    communications@gibsonenergy.com

    The MIL Network –

  • MIL-OSI: H&R Block Reports Fiscal 2025 Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    — Repurchased $190 Million of Shares—

    — Reaffirms Full Year Outlook —

    KANSAS CITY, Mo., Feb. 04, 2025 (GLOBE NEWSWIRE) — H&R Block, Inc. (NYSE: HRB) (the “Company”) today released financial results1 for its fiscal 2025 second quarter ended December 31, 2024.

    “I am pleased with our performance in the first half of the year,” said Jeff Jones, president and chief executive officer. “We are reaffirming our fiscal 2025 outlook, and are well prepared to deliver this tax season and in the second half of the fiscal year.”

    Fiscal 2025 Second Quarter Results and Key Financial Metrics
    “We are on track for the year and we are well positioned to deliver strong results,” said Tiffany Mason, chief financial officer. “During the second quarter, we repurchased 3.2 million shares for $190 million, reflecting our confidence in the long-term value of our stock and our commitment to delivering shareholder returns.”

    For the second quarter, the Company delivered total revenue of $179.1 million, which was flat to the prior year. Increases in revenue from Wave and international tax preparation were offset by lower interest and fee income on Emerald Advance® due to a decrease in loan originations.

    Total operating expenses of $472.4 million increased by $25.8 million as expected, primarily due to higher tax professional and corporate wages, increased healthcare costs, an increase in occupancy costs and the timing of marketing expenses versus the prior year.

    Pretax loss increased by $29.4 million to $312.3 million.

    Loss per share from continuing operations2 increased to $(1.79) from $(1.33) and adjusted loss per share from continuing operations2 increased to $(1.73) from $(1.27), due to a higher net loss and fewer shares outstanding as a result of share repurchases, which are accretive to earnings per share on a full-year basis.

    Capital Allocation

    The Company reported the following related to its capital structure:

    • Repurchased and retired 3.2 million shares at an aggregate price of $190.5 million, or $58.65 per share in the second quarter.
    • The Company has approximately $1.1 billion remaining on its $1.5 billion share repurchase program.

    Since 2016, the Company has returned more than $4.4 billion to shareholders in the form of dividends and share repurchases, buying back over 43% of its shares outstanding3.

    Fiscal Year 2025 Outlook Reaffirmed

    The Company continues to expect:

    • Revenue to be in the range of $3.69 to $3.75 billion.
    • EBITDA4 to be in the range of $975 million to $1.02 billion.
    • Effective tax rate to be approximately 13%, resulting in a one-time benefit to EPS of approximately 50 cents.
    • Adjusted Diluted Earnings Per Share4 to be in the range of $5.15 to $5.35.

    Conference Call

    The Company will host a conference call for analysts and investors to discuss second quarter 2025 results at 4:30 p.m. ET on Tuesday, February 4, 2025. To join live, participants must register at https://register.vevent.com/register/BI06a7e8ddc07544a6853995c1fe75ea2c. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.

    The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/qdeqpgfd and will be available for replay 2 hours after the call is concluded and continuing for 90 days.

    About H&R Block

    H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time, and be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

    About Non-GAAP Financial Information

    This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled “Non-GAAP Financial Information.”

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “commits,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “goal,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company’s control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled “Risk Factors” and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

    1 All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
    2 All per share amounts are based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, free cash flow, and free cash flow yield, which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See “About Non-GAAP Financial Information” below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
    3 Shares outstanding calculated as of April 30, 2016.
    4 Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.

    For Further Information
         
    Investor Relations:   Colby Brown, (816) 854-4559, colby.brown@hrblock.com
        Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com
    Media Relations:   Teri Daley, (816) 854-3787, teri.daley@hrblock.com
        Media Desk, mediadesk@hrblock.com
         
    FINANCIAL RESULTS   (unaudited, in 000s – except per share amounts)
        Three months ended December 31,   Six months ended December 31,
          2024       2023       2024       2023  
    REVENUES:                
    U.S. tax preparation and related services:                
    Assisted tax preparation   $              48,380     $ 48,342     $              91,343     $ 87,605  
    Royalties                      3,499       5,454                        9,351       11,155  
    DIY tax preparation                    13,744       13,111                      16,980       16,959  
    Refund Transfers                          637       813                        1,497       1,955  
    Peace of Mind® Extended Service Plan                    16,145       17,440                      39,242       42,287  
    Tax Identity Shield®                      4,013       4,694                        7,922       9,274  
    Other                    11,824       9,592                      25,633       20,572  
    Total U.S. tax preparation and related services                    98,242       99,446                    191,968       189,807  
    Financial services:                
    Emerald Card® and SpruceSM                    10,148       11,700                      18,974       20,333  
    Interest and fee income on Emerald Advance®                    12,308       15,235                      12,308       15,533  
    Total financial services                    22,456       26,935                      31,282       35,866  
    International                    31,811       29,569                      96,666       90,134  
    Wave                    26,561       23,133                      52,964       47,076  
    Total revenues   $            179,070     $ 179,083     $            372,880     $ 362,883  
    Compensation and benefits:                
    Field wages                    81,565       77,795                    149,659       140,230  
    Other wages                    78,731       74,671                    156,066       146,769  
    Benefits and other compensation                    38,402       36,063                      77,156       71,311  
                       198,698       188,529                    382,881       358,310  
    Occupancy                  104,999       101,194                    206,317       200,479  
    Marketing and advertising                    14,863       11,305                      24,835       16,786  
    Depreciation and amortization                    29,195       30,107                      58,026       60,332  
    Bad debt                    19,416       21,754                      22,146       26,552  
    Other                  105,190       93,626                    200,297       174,182  
    Total operating expenses                  472,361       446,515                    894,502       836,641  
    Other income (expense), net                      2,744       5,922                      14,661       15,758  
    Interest expense on borrowings                   (21,752 )     (21,364 )                   (37,599 )     (37,234 )
    Pretax loss                 (312,299 )     (282,874 )                 (544,560 )     (495,234 )
    Income tax benefit                   (69,833 )     (93,758 )                 (130,673 )     (143,245 )
    Net loss from continuing operations                 (242,466 )     (189,116 )                 (413,887 )     (351,989 )
    Net loss from discontinued operations                        (954 )     (639 )                     (2,109 )     (1,248 )
    Net loss   $           (243,420 )   $ (189,755 )   $           (415,996 )   $ (353,237 )
    BASIC AND DILUTED LOSS PER SHARE:                
    Continuing operations   $                 (1.79 )   $ (1.33 )   $                 (3.02 )   $ (2.44 )
    Discontinued operations                       (0.01 )     —                         (0.01 )     (0.01 )
    Consolidated   $                 (1.80 )   $ (1.33 )   $                 (3.03 )   $ (2.45 )
    WEIGHTED AVERAGE DILUTED SHARES                  135,563       142,340                    137,359       144,307  
    Adjusted diluted EPS (1)   $                 (1.73 )   $ (1.27 )   $                 (2.89 )   $ (2.31 )
    EBITDA (1)   $           (261,352 )   $ (231,403 )   $           (448,935 )   $ (397,668 )
                                     

    (1) All non-GAAP measures are results from continuing operations. See “Non-GAAP Financial Information” for a reconciliation of non-GAAP measures.

    CONSOLIDATED BALANCE SHEETS   (unaudited, in 000s – except per share data)
    As of   December 31, 2024   June 30, 2024
             
    ASSETS        
    Cash and cash equivalents   $                   320,051     $ 1,053,326  
    Cash and cash equivalents – restricted                           21,473       21,867  
    Receivables, net                         321,171       69,075  
    Prepaid expenses and other current assets                         114,658       95,208  
    Total current assets                         777,353       1,239,476  
    Property and equipment, net                         143,833       131,319  
    Operating lease right of use assets                         389,629       461,986  
    Intangible assets, net                         270,601       264,102  
    Goodwill                         783,286       785,226  
    Deferred tax assets and income taxes receivable                         281,694       271,658  
    Other noncurrent assets                           65,924       65,043  
    Total assets   $                2,712,320     $ 3,218,810  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    LIABILITIES:        
    Accounts payable and accrued expenses   $                   136,893     $ 155,830  
    Accrued salaries, wages and payroll taxes                           64,993       105,548  
    Accrued income taxes and reserves for uncertain tax positions                         149,255       318,830  
    Current portion of long-term debt                         349,611       —  
    Operating lease liabilities                         170,726       206,070  
    Deferred revenue and other current liabilities                         187,885       191,050  
    Total current liabilities                      1,059,363       977,328  
    Long-term debt and line of credit borrowings                      1,932,545       1,491,095  
    Deferred tax liabilities and reserves for uncertain tax positions                         292,643       291,063  
    Operating lease liabilities                         228,041       265,373  
    Deferred revenue and other noncurrent liabilities                           72,188       103,357  
    Total liabilities                      3,584,780       3,128,216  
    COMMITMENTS AND CONTINGENCIES        
    STOCKHOLDERS’ EQUITY:        
    Common stock, no par, stated value $.01 per share                             1,644       1,709  
    Additional paid-in capital                         752,093       762,583  
    Accumulated other comprehensive loss                         (71,762 )     (48,845 )
    Retained earnings (deficit)                       (908,785 )     12,654  
    Less treasury shares, at cost                       (645,650 )     (637,507 )
    Total stockholders’ equity (deficiency)                       (872,460 )     90,594  
    Total liabilities and stockholders’ equity   $                2,712,320     $ 3,218,810  
             
             
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   (unaudited, in 000s)
    Six months ended December 31,     2024       2023  
             
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net loss   $                 (415,996 )   $ (353,237 )
    Adjustments to reconcile net loss to net cash used in operating activities:        
    Depreciation and amortization                           58,026       60,331  
    Provision for credit losses                           20,727       21,536  
    Deferred taxes                           (1,531 )     (35,525 )
    Stock-based compensation                           17,945       17,525  
    Changes in assets and liabilities, net of acquisitions:        
    Receivables                       (262,348 )     (348,833 )
    Prepaid expenses, other current and noncurrent assets                             2,588       (7,395 )
    Accounts payable, accrued expenses, salaries, wages and payroll taxes                         (76,806 )     (58,543 )
    Deferred revenue, other current and noncurrent liabilities                         (45,170 )     (58,520 )
    Income tax receivables, accrued income taxes and income tax reserves                       (192,340 )     (180,706 )
    Other, net                              (733 )     1,201  
    Net cash used in operating activities                       (895,638 )     (942,166 )
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Capital expenditures                         (49,115 )     (32,708 )
    Payments made for business acquisitions, net of cash acquired                         (28,017 )     (27,158 )
    Franchise loans funded                         (17,442 )     (15,491 )
    Payments from franchisees                                971       2,747  
    Other, net                             6,110       1,565  
    Net cash used in investing activities                         (87,493 )     (71,045 )
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Repayments of line of credit borrowings                       (100,000 )     (25,000 )
    Proceeds from line of credit borrowings                         890,000       825,000  
    Dividends paid                         (96,960 )     (89,854 )
    Repurchase of common stock, including shares surrendered                       (436,233 )     (378,709 )
    Other, net                             1,791       4,011  
    Net cash provided by financing activities                         258,598       335,448  
    Effects of exchange rate changes on cash                           (9,136 )     671  
    Net decrease in cash and cash equivalents, including restricted balances                       (733,669 )     (677,092 )
    Cash, cash equivalents and restricted cash, beginning of period                      1,075,193       1,015,316  
    Cash, cash equivalents and restricted cash, end of period   $                   341,524     $ 338,224  
    SUPPLEMENTARY CASH FLOW DATA:        
                     
    Income taxes paid, net (includes payments for purchased investment tax credits)   $                     62,290     $ 72,160  
    Interest paid on borrowings                           33,412       35,496  
    Accrued additions to property and equipment                             3,798       4,036  
    New operating right of use assets and related lease liabilities                           47,135       70,532  
    Accrued dividends payable to common shareholders                           50,176       45,273  
             
    (in 000s)
        Three months ended December 31,   Six months ended December 31,
    NON-GAAP FINANCIAL MEASURE – EBITDA     2024       2023       2024       2023  
                     
    Net loss – as reported   $           (243,420 )   $ (189,755 )   $           (415,996 )   $ (353,237 )
    Discontinued operations, net                          954       639                        2,109       1,248  
    Net loss from continuing operations – as reported                 (242,466 )     (189,116 )                 (413,887 )     (351,989 )
    Add back:                
    Income tax benefit                   (69,833 )     (93,758 )                 (130,673 )     (143,245 )
    Interest expense                    21,752       21,364                      37,599       37,234  
    Depreciation and amortization                    29,195       30,107                      58,026       60,332  
                        (18,886 )     (42,287 )                   (35,048 )     (45,679 )
    EBITDA from continuing operations   $           (261,352 )   $ (231,403 )   $           (448,935 )   $ (397,668 )
                     
                     
    (in 000s, except per share amounts)
        Three months ended December 31,   Six months ended December 31,
    NON-GAAP FINANCIAL MEASURE – ADJUSTED EPS     2024       2023       2024       2023  
                     
    Net loss from continuing operations – as reported   $           (242,466 )   $ (189,116 )   $           (413,887 )   $ (351,989 )
    Adjustments:                
    Amortization of intangibles related to acquisitions (pretax)                    10,910       12,269                      22,038       24,824  
    Tax effect of adjustments (1)                     (2,539 )     (3,087 )                     (5,184 )     (6,022 )
    Adjusted net loss from continuing operations   $           (234,095 )   $ (179,934 )   $           (397,033 )   $ (333,187 )
    Diluted loss per share from continuing operations – as reported   $                 (1.79 )   $ (1.33 )   $                 (3.02 )   $ (2.44 )
    Adjustments, net of tax                        0.06       0.06                          0.13       0.13  
    Adjusted diluted loss per share from continuing operations   $                 (1.73 )   $ (1.27 )   $                 (2.89 )   $ (2.31 )
                     

    (1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.

    Non-GAAP  Financial Information

    Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.

    We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

    We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, free cash flow, and free cash flow yield. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

    The MIL Network –

  • MIL-OSI: Nasdaq CEO Adena Friedman to Present at the 2025 UBS Financial Services Conference

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) — Nasdaq (Nasdaq: NDAQ) will be presenting at the following conference, with a webcast available at Nasdaq’s Investor Relations website: ir.nasdaq.com/events.cfm.

       
    Who: Adena Friedman, Chair & CEO, Nasdaq
       
    What: 2025 UBS Financial Services Conference
       
    When: Monday, February 10, 2025
    1:00 PM ET
       

    About Nasdaq

    Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    Media Relations Contact:

    Nick Eghtessad
    +1.929.996.8894
    Nick.Eghtessad@Nasdaq.com

    Investor Relations Contact:

    Ato Garrett
    +1.212.401.8737
    Ato.Garrett@Nasdaq.com

    -NDAQF-

    The MIL Network –

  • MIL-OSI: Enphase Energy Reports Financial Results for the Fourth Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the fourth quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.

    We reported quarterly revenue of $382.7 million in the fourth quarter of 2024, along with 53.2% for non-GAAP gross margin. We shipped approximately 2.01 million microinverters, or 878.0 megawatts DC, and 152.4 megawatt hours of IQ® Batteries.

    Financial highlights for the fourth quarter of 2024 are listed below:

    • Strong U.S. manufacturing: shipped 1.69 million microinverters and 6.7 megawatt hours of IQ Batteries
    • Quarterly revenue of $382.7 million
    • GAAP gross margin of 51.8%; non-GAAP gross margin of 53.2% with net IRA benefit
    • Non-GAAP gross margin of 39.7%, excluding net IRA benefit of 13.5%
    • GAAP operating income of $54.8 million; non-GAAP operating income of $120.4 million
    • GAAP net income of $62.2 million; non-GAAP net income of $125.9 million
    • GAAP diluted earnings per share of $0.45; non-GAAP diluted earnings per share of $0.94
    • Free cash flow of $159.2 million; ending cash, cash equivalents, restricted cash and marketable securities of $1.72 billion

    Our revenue and earnings for the fourth quarter of 2024 are provided below, compared with the prior quarter:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      Q4 2024   Q3 2024   Q4 2023   Q4 2024   Q3 2024   Q4 2023
    Revenue $ 382,713     $ 380,873     $ 302,570     $ 382,713     $ 380,873     $ 302,570  
    Gross margin   51.8 %     46.8 %     48.5 %     53.2 %     48.1 %     50.3 %
    Operating expenses $ 143,489     $ 128,383     $ 156,893     $ 83,322     $ 81,612     $ 86,551  
    Operating income (loss) $ 54,804     $ 49,788     $ (10,231 )   $ 120,434     $ 101,411     $ 65,587  
    Net income $ 62,160     $ 45,762     $ 20,919     $ 125,862     $ 88,402     $ 73,474  
    Basic EPS $ 0.46     $ 0.34     $ 0.15     $ 0.94     $ 0.65     $ 0.54  
    Diluted EPS $ 0.45     $ 0.33     $ 0.15     $ 0.94     $ 0.65     $ 0.54  
                                                   

    Our revenue and earnings for the fiscal year 2024 are provided below, compared with the prior year:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      FY 2024   FY 2023   FY 2024   FY 2023
    Revenue $ 1,330,383     $ 2,290,786     $ 1,330,383     $ 2,290,786  
    Gross margin   47.3 %     46.2 %     48.9 %     47.1 %
    Operating expenses $ 551,846     $ 612,647     $ 329,227     $ 382,115  
    Operating income $ 77,292     $ 445,741     $ 321,919     $ 697,210  
    Net income $ 102,658     $ 438,936     $ 321,044     $ 613,241  
    Basic EPS $ 0.76     $ 3.22     $ 2.37     $ 4.50  
    Diluted EPS $ 0.75     $ 3.08     $ 2.37     $ 4.41  
                                   

    Total revenue for the fourth quarter of 2024 was $382.7 million, compared to $380.9 million in the third quarter of 2024. Our revenue in the United States for the fourth quarter of 2024 increased approximately 6%, compared to the third quarter. The increase in revenue was due to higher microinverter sales. Our revenue in Europe decreased approximately 25% for the fourth quarter of 2024, compared to the third quarter. The decline in revenue was the result of a further softening in European demand.

    Our non-GAAP gross margin was 53.2% in the fourth quarter of 2024, compared to 48.1% in the third quarter. Our non-GAAP gross margin, excluding net IRA benefit, was 39.7% in the fourth quarter of 2024, compared to 38.9% in the third quarter.

    Our non-GAAP operating expenses were $83.3 million in the fourth quarter of 2024, compared to $81.6 million in the third quarter. The increase was driven by higher R&D expense on new products. Our non-GAAP operating income was $120.4 million in the fourth quarter of 2024, compared to $101.4 million in the third quarter.

    We exited the fourth quarter of 2024 with $1.72 billion in cash, cash equivalents, restricted cash and marketable securities and generated $167.3 million in cash flow from operations in the fourth quarter. Our capital expenditures were $8.1 million in the fourth quarter of 2024, compared to $8.5 million in the third quarter of 2024.

    In the fourth quarter of 2024, we repurchased 2,883,438 shares of our common stock at an average price of $69.25 per share for a total of approximately $199.7 million. We also spent approximately $5.0 million by withholding shares to cover taxes for employee stock vesting that reduced the diluted shares by 68,532 shares.

    We shipped 152.4 megawatt hours of IQ Batteries in the fourth quarter of 2024, compared to 172.9 megawatt hours in the third quarter. More than 10,300 installers worldwide are certified to install our IQ Batteries, compared to more than 9,000 installers worldwide in the third quarter of 2024.

    During the fourth quarter of 2024, we shipped approximately 1.69 million microinverters from our contract manufacturing facilities in the United States that we booked for 45X production tax credits. We also expanded our higher domestic content product offerings, and shipped our IQ8HC™ Microinverters, IQ8X™ Microinverters, IQ8P-3P™ Commercial Microinverters, and IQ® Battery 5Ps, all with higher domestic content than previous models and produced at our contract manufacturing facilities in the United States.

    During the fourth quarter of 2024, we made great strides with the IQ® Meter Collar, fourth-generation IQ Battery, and new IQ® Combiner products. We launched the IQ® PowerPack 1500, a 1.5 kWh smart, portable energy system for home, work, and on-the-go use. In Europe, we introduced the IQ® EV Charger 2, a next-generation smart charger that integrates with our solar and battery systems seamlessly or works as a standalone. In January 2025, we began shipping the IQ® Battery 5P™ with FlexPhase to Germany, Austria, and Switzerland, delivering reliable backup power for both single- and three-phase installations.

    BUSINESS HIGHLIGHTS

    On Jan. 30, 2025, Enphase Energy announced that it is expanding in Southeast Asia by entering the solar markets in Vietnam and Malaysia with IQ8P™ Microinverters.

    On Jan. 27, 2025, Enphase Energy announced integration with Octopus Energy’s smart tariffs in the UK, such as “Intelligent Octopus Flux” (IO Flux), which can help customers save money on electricity bills.

    On Jan. 23, 2025, Enphase Energy announced that its IQ8™ Microinverters for residential and commercial applications, are now in compliance with the Build America, Buy America (BABA) Act.

    On Jan. 13, 2025, Enphase Energy announced shipments of its most powerful and versatile battery yet, the IQ Battery 5P with FlexPhase, for customers in Germany, Austria, and Switzerland. With reliable backup power and support for single- and three-phase systems, it offers unmatched flexibility for home energy needs.

    On Jan. 9, 2025, Enphase Energy announced that it is expanding into Latin America with IQ8P Microinverters, bringing solar solutions to Colombia, Panama, and Costa Rica for residential and commercial use. 

    On Jan. 7, 2025, Enphase Energy announced that IQ8 Microinverters were selected for a 2.2 MW solar project at the Belgoprocess radioactive waste facility in Dessel, Belgium. 

    On Dec. 17, 2024, Enphase Energy announced initial shipments of its most powerful home battery to-date, the IQ Battery 5P, for customers in India. 

    On Dec. 5 and Dec. 9, 2024, Enphase Energy announced collaborations with two energy providers in the Netherlands, Frank Energie and NextEnergy, to enable participation in the grid imbalance energy marketplace.

    On Dec. 3, 2024, Enphase Energy announced the launch of Busbar Power Control software that empowers homeowners to install larger solar and battery systems without costly main electrical panel upgrades.

    On Nov. 11, 2024, Enphase Energy announced an AI-powered do-it-yourself (DIY) permitting feature on Solargraf®, to automate the complex solar permitting process for installers in the USA.

    On Nov. 4, 2024, Enphase Energy announced the launch of its most powerful Enphase Energy System to-date, featuring the IQ Battery 5P and IQ8 Microinverters, for customers in Romania.

    FIRST QUARTER 2025 FINANCIAL OUTLOOK

    For the first quarter of 2025, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

    • Revenue to be within a range of $340.0 million to $380.0 million, which includes shipments of 150 to 170 megawatt hours of IQ Batteries. The first quarter of 2025 financial outlook includes approximately $50.0 million of safe harbor revenue. We define safe harbor revenue as any sales made to customers who plan to install the inventory over more than one year.
    • GAAP gross margin to be within a range of 46.0% to 49.0% with net IRA benefit
    • Non-GAAP gross margin to be within a range of 48.0% to 51.0% with net IRA benefit and 38.0% to 41.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization
    • Net IRA benefit to be within a range of $36.0 million to $39.0 million based on estimated shipments of 1,200,000 units of U.S. manufactured microinverters
    • GAAP operating expenses to be within a range of $143.0 million to $147.0 million
    • Non-GAAP operating expenses to be within a range of $81.0 million to $85.0 million, excluding $62.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization, restructuring and asset impairment charges

    For 2025, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%.

    Follow Enphase Online

    Use of non-GAAP Financial Measures

    Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.

    These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

    As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:

    Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.

    Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.

    Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs, accelerated stock-based compensation expense and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.

    Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.

    Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.

    Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.

    Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.

    Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.

    Conference Call Information

    Enphase Energy will host a conference call for analysts and investors to discuss its fourth quarter 2024 results and first quarter 2025 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 3831590, beginning approximately one hour after the call.

    Forward-Looking Statements

    This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its first quarter of 2025 financial outlook, including revenue, shipments of IQ Batteries by megawatt hours, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products, including the IQ Meter Collar, fourth-generation IQ Battery, and new IQ Combiner products; its expectations regarding higher domestic content product offerings; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

    A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.

    About Enphase Energy, Inc.

    Enphase Energy, a global energy technology company based in Fremont, CA, is the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 80.0 million microinverters, and approximately 4.7 million Enphase-based systems have been deployed in more than 160 countries. For more information, visit https://enphase.com/.

    ©2025 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines   are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

    Contact:

    Zach Freedman
    Enphase Energy, Inc.
    Investor Relations
    ir@enphaseenergy.com

    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended Year Ended
      December 31, 
    2024    		   September 30, 
    2024    		   December 31, 
    2023    		   December 31, 
    2024    		   December 31, 
    2023
    Net revenues $ 382,713     $ 380,873     $ 302,570     $ 1,330,383     $ 2,290,786  
    Cost of revenues   184,420       202,702       155,908       701,245       1,232,398  
    Gross profit   198,293       178,171       146,662       629,138       1,058,388  
    Operating expenses:                  
    Research and development   50,390       47,843       55,291       201,315       227,336  
    Sales and marketing   51,799       49,671       53,409       206,552       231,792  
    General and administrative   31,901       30,192       33,379       130,825       137,835  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,684  
    Total operating expenses   143,489       128,383       156,893       551,846       612,647  
    Income (loss) from operations   54,804       49,788       (10,231 )     77,292       445,741  
    Other income, net                  
    Interest income   18,417       19,977       20,493       77,306       69,728  
    Interest expense   (2,252 )     (2,237 )     (2,268 )     (8,905 )     (8,839 )
    Other income (expense), net   (1,270 )     (16,785 )     4,233       (25,534 )     6,509  
    Total other income, net   14,895       955       22,458       42,867       67,398  
    Income before income taxes   69,699       50,743       12,227       120,159       513,139  
    Income tax (provision) benefit   (7,539 )     (4,981 )     8,692       (17,501 )     (74,203 )
    Net income $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Net income per share:                  
    Basic $ 0.46     $ 0.34     $ 0.15     $ 0.76     $ 3.22  
    Diluted $ 0.45     $ 0.33     $ 0.15     $ 0.75     $ 3.08  
    Shares used in per share calculation:                  
    Basic   133,815       135,329       136,092       135,167       136,376  
    Diluted   138,128       139,914       139,205       140,004       143,290  
                                           
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      December 31,
    2024    		   December 31,
    2023
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 369,110   $ 288,748
    Restricted cash   95,006     —
    Marketable securities   1,253,480     1,406,286
    Accounts receivable, net   223,749     445,959
    Inventory   165,004     213,595
    Prepaid expenses and other assets   220,735     88,930
    Total current assets   2,327,084     2,443,518
    Property and equipment, net   147,514     168,244
    Operating lease, right of use asset, net   24,617     19,887
    Intangible assets, net   42,398     68,536
    Goodwill   211,571     214,562
    Other assets   180,925     215,895
    Deferred tax assets, net   315,567     252,370
    Total assets $ 3,249,676   $ 3,383,012
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 90,032   $ 116,164
    Accrued liabilities   196,887     261,919
    Deferred revenues, current   237,225     118,300
    Warranty obligations, current   34,656     36,066
    Debt, current   101,291     —
    Total current liabilities   660,091     532,449
    Long-term liabilities:      
    Deferred revenues, non-current   341,982     369,172
    Warranty obligations, non-current   158,233     153,021
    Other liabilities   55,265     51,008
    Debt, non-current   1,201,089     1,293,738
    Total liabilities   2,416,660     2,399,388
    Total stockholders’ equity   833,016     983,624
    Total liabilities and stockholders’ equity $ 3,249,676   $ 3,383,012
               
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Three Months Ended   Year Ended
      December 31, 
    2024    		   September 30, 
    2024    		   December 31, 
    2023    		   December 31, 
    2024    		   December 31, 
    2023
    Cash flows from operating activities:                  
    Net income $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Adjustments to reconcile net income to net cash provided by operating activities:                  
    Depreciation and amortization   20,665       20,103       20,841       81,389       74,708  
    Net accretion of discount on marketable securities   (7,490 )     (2,904 )     (2,950 )     (8,599 )     (15,561 )
    Provision for doubtful accounts   2,206       2,704       (129 )     6,677       1,153  
    Asset impairment   4,702       17,568       9,700       28,843       10,603  
    Non-cash interest expense   2,188       2,173       2,126       8,650       8,380  
    Net loss (gain) from change in fair value of debt securities   (3,697 )     741       (2,670 )     (1,967 )     (8,078 )
    Stock-based compensation   51,830       45,940       55,222       211,360       212,857  
    Deferred income taxes   (30,675 )     (5,276 )     (5,053 )     (58,319 )     (43,348 )
    Changes in operating assets and liabilities:                  
    Accounts receivable   2,684       49,414       105,771       211,640       (12,478 )
    Inventory   (6,167 )     17,231       (39,481 )     48,591       (63,887 )
    Prepaid expenses and other assets   (16,487 )     (64,149 )     (2,401 )     (134,343 )     (59,777 )
    Accounts payable, accrued and other liabilities   (27,396 )     32,088       (139,277 )     (85,536 )     (22,149 )
    Warranty obligations   8,657       7,053       221       3,802       57,641  
    Deferred revenues   104,112       1,690       12,611       98,847       117,780  
    Net cash provided by operating activities   167,292       170,138       35,450       513,693       696,780  
    Cash flows from investing activities:                  
    Purchases of property and equipment   (8,064 )     (8,533 )     (20,075 )     (33,604 )     (110,401 )
    Purchases of marketable securities   (93,138 )     (319,190 )     (337,757 )     (1,184,649 )     (2,081,431 )
    Maturities and sale of marketable securities   351,843       215,241       433,869       1,346,520       1,840,477  
    Investments in private companies   —       —       —       —       (15,000 )
    Net cash provided by (used in) investing activities   250,641       (112,482 )     76,037       128,267       (366,355 )
    Cash flows from financing activities:                  
    Partial settlement of convertible notes   —       (5 )     —       (7 )     —  
    Repurchase of common stock   (199,666 )     (49,794 )     (99,998 )     (391,364 )     (409,998 )
    Payment of excise tax on net stock repurchases   (2,773 )     —       —       (2,773 )     —  
    Proceeds from issuance of common stock under employee equity plans   4,719       14       12,555       12,688       13,870  
    Payment of withholding taxes related to net share settlement of equity awards   (5,012 )     (6,286 )     (27,546 )     (78,813 )     (120,646 )
    Net cash used in financing activities   (202,732 )     (56,071 )     (114,989 )     (460,269 )     (516,774 )
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (7,410 )     2,638       2,175       (6,323 )     1,853  
    Net increase (decrease) in cash and cash equivalents and restricted cash   207,791       4,223       (1,327 )     175,368       (184,496 )
    Cash and cash equivalents—Beginning of period   256,325       252,102       290,075       288,748       473,244  
    Cash, cash equivalents and restricted cash—End of period $ 464,116     $ 256,325     $ 288,748     $ 464,116     $ 288,748  
                                           
    ENPHASE ENERGY, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data and percentages)
    (Unaudited)
     
      Three Months Ended   Year Ended
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Gross profit (GAAP) $ 198,293     $ 178,171     $ 146,662     $ 629,138     $ 1,058,388  
    Stock-based compensation   3,678       2,948       3,582       14,538       13,357  
    Acquisition related amortization   1,784       1,904       1,894       7,469       7,580  
    Gross profit (Non-GAAP) $ 203,755     $ 183,023     $ 152,138     $ 651,145     $ 1,079,325  
                       
    Gross margin (GAAP)   51.8 %     46.8 %     48.5 %     47.3 %     46.2 %
    Stock-based compensation   0.9       0.8       1.2       1.0       0.6  
    Acquisition related amortization   0.5       0.5       0.6       0.6       0.3  
    Gross margin (Non-GAAP)   53.2 %     48.1 %     50.3 %     48.9 %     47.1 %
                       
    Operating expenses (GAAP) $ 143,489     $ 128,383     $ 156,893     $ 551,846     $ 612,647  
    Stock-based compensation (1)   (47,884 )     (42,992 )     (51,640 )     (196,554 )     (199,500 )
    Acquisition related expenses and amortization   (2,884 )     (3,102 )     (3,888 )     (12,911 )     (15,317 )
    Restructuring and asset impairment charges (1)   (9,399 )     (677 )     (14,814 )     (13,154 )     (15,715 )
    Operating expenses (Non-GAAP) $ 83,322     $ 81,612     $ 86,551     $ 329,227     $ 382,115  
                       
    (1) Includes stock-based compensation as follows:                  
    Research and development $ 20,951     $ 19,790     $ 23,839     $ 85,501     $ 88,367  
    Sales and marketing   15,893       14,237       16,472       65,092       65,703  
    General and administrative   11,041       8,965       11,329       45,962       45,430  
    Restructuring and asset impairment charges   267       —       —       267       —  
    Total $ 48,152     $ 42,992     $ 51,640     $ 196,822     $ 199,500  
                       
    Income (loss) from operations (GAAP) $ 54,804     $ 49,788     $ (10,231 )   $ 77,292     $ 445,741  
    Stock-based compensation   51,563       45,940       55,222       211,093       212,857  
    Acquisition related expenses and amortization   4,668       5,006       5,782       20,380       22,897  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,715  
    Income from operations (Non-GAAP) $ 120,434     $ 101,411     $ 65,587     $ 321,919     $ 697,210  
                       
    Net income (GAAP) $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Stock-based compensation   51,563       45,940       55,222       211,093       212,857  
    Acquisition related expenses and amortization   4,668       5,006       5,782       20,380       22,897  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,715  
    Non-cash interest expense   2,188       2,173       2,126       8,650       8,380  
    Non-GAAP income tax adjustment   (4,116 )     (11,156 )     (25,389 )     (34,891 )     (85,544 )
    Net income (Non-GAAP) $ 125,862     $ 88,402     $ 73,474     $ 321,044     $ 613,241  
                       
    Net income per share, basic (GAAP) $ 0.46     $ 0.34     $ 0.15     $ 0.76     $ 3.22  
    Stock-based compensation   0.39       0.34       0.40       1.56       1.56  
    Acquisition related expenses and amortization   0.03       0.04       0.08       0.15       0.17  
    Restructuring and asset impairment charges   0.07       0.01       0.11       0.10       0.12  
    Non-cash interest expense   0.02       0.02       0.02       0.06       0.06  
    Non-GAAP income tax adjustment   (0.03 )     (0.10 )     (0.22 )     (0.26 )     (0.63 )
    Net income per share, basic (Non-GAAP) $ 0.94     $ 0.65     $ 0.54     $ 2.37     $ 4.50  
                       
    Shares used in basic per share calculation GAAP and Non-GAAP   133,815       135,329       136,092       135,167       136,376  
                       
    Net income per share, diluted (GAAP) $ 0.45     $ 0.33     $ 0.15     $ 0.75     $ 3.08  
    Stock-based compensation   0.39       0.33       0.39       1.56       1.57  
    Acquisition related expenses and amortization   0.04       0.04       0.08       0.15       0.16  
    Restructuring and asset impairment charges   0.07       0.01       0.10       0.10       0.11  
    Non-cash interest expense   0.02       0.02       0.01       0.06       0.06  
    Non-GAAP income tax adjustment   (0.03 )     (0.08 )     (0.19 )     (0.26 )     (0.57 )
    Net income per share, diluted (Non-GAAP) (2) $ 0.94     $ 0.65     $ 0.54     $ 2.37     $ 4.41  
                       
    Shares used in diluted per share calculation GAAP   138,128       139,914       139,205       140,004       143,290  
    Shares used in diluted per share calculation Non-GAAP   134,053       135,839       137,187       135,641       139,214  
                       
    Income-based government grants (GAAP) $ 68,040     $ 46,552     $ 32,887     $ 157,538     $ 53,470  
    Incremental cost for manufacturing in U.S.   (16,123 )     (11,396 )     (7,112 )     (38,351 )     (11,603 )
    Net IRA benefit (Non-GAAP) $ 51,917     $ 35,156     $ 25,775     $ 119,187     $ 41,867  
                       
    Net cash provided by operating activities (GAAP) $ 167,292     $ 170,138     $ 35,450     $ 513,693     $ 696,780  
    Purchases of property and equipment   (8,064 )     (8,533 )     (20,075 )     (33,604 )     (110,401 )
    Free cash flow (Non-GAAP) $ 159,228     $ 161,605     $ 15,375     $ 480,089     $ 586,379  
                                           
    (2)  Calculation of non-GAAP diluted net income per share for the year ended December 31, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million from non-GAAP net income.

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

  • MIL-OSI: Nasdaq Reports January 2025 Volumes

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) — Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for January 2025 on its Investor Relations website. A data sheet showing this information can be found at: http://ir.nasdaq.com/financials/volume-statistics.

    About Nasdaq

    Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    Cautionary Note Regarding Forward-Looking Statements
    Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, trading volumes, products and services, ability to transition to new business models, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions, divestitures and other strategic, restructuring, technology, de-leveraging and capital allocation initiatives, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

    Media Relations Contacts:

    Nick Jannuzzi
    +1.973.760.1741
    Nicholas.Jannuzzi@Nasdaq.com

    Nick Eghtessad
    +1.929.996.8894
    Nick.Eghtessad@Nasdaq.com

    Investor Relations Contact:

    Ato Garrett
    +1.212.401.8737
    Ato.Garrett@Nasdaq.com

    -NDAQF-

    The MIL Network –

  • MIL-OSI: Intapp Announces Second Quarter Fiscal Year 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Second quarter SaaS revenue of $80.0 million, up 27% year-over-year
    • Cloud annual recurring revenue (ARR) of $331.1 million, up 29% year-over-year
    • Trailing twelve months’ cloud net revenue retention rate as of December 31, 2024 was 119%

    PALO ALTO, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — Intapp, Inc. (NASDAQ: INTA), a leading global provider of AI-powered solutions for professionals at advisory, capital markets, and legal firms, announced financial results for its fiscal second quarter ended December 31, 2024. Intapp also provided its outlook for the third quarter and the full fiscal year 2025.

    “I’m pleased to share that once again we’ve achieved strong quarterly results which are supported by the addition of new clients and expanded client relationships,” said John Hall, CEO of Intapp. “Our second quarter results are indicative of our ability to continually drive AI, cloud adoption, and modernization across the industries we serve.”

    Second Quarter of Fiscal Year 2025 Financial Highlights

    • SaaS revenue was $80.0 million, a 27% year-over-year increase compared to the second quarter of fiscal year 2024.
    • Total revenue was $121.2 million, a 17% year-over-year increase compared to the second quarter of fiscal year 2024.
    • Cloud ARR was $331.1 million as of December 31, 2024, a 29% year-over-year increase compared to Cloud ARR as of December 31, 2023. Cloud ARR represented 76% of total ARR as of December 31, 2024, compared to 70% as of December 31, 2023.
    • Total ARR was $437.1 million as of December 31, 2024, a 20% year-over-year increase compared to total ARR as of December 31, 2023.
    • GAAP operating loss was $(10.2) million, compared to a GAAP operating loss of $(11.1) million in the second quarter of fiscal year 2024.
    • Non-GAAP operating income was $18.9 million, compared to a non-GAAP operating income of $7.6 million in the second quarter of fiscal year 2024.
    • GAAP net loss was $(10.2) million, compared to a GAAP net loss of $(9.2) million in the second quarter of fiscal year 2024.
    • Non-GAAP net income was $17.4 million, compared to a non-GAAP net income of $8.8 million in the second quarter of fiscal year 2024.
    • GAAP net loss per share was $(0.13), compared to a GAAP net loss per share of $(0.13) in the second quarter of fiscal year 2024.
    • Non-GAAP diluted net income per share was $0.21, compared to a non-GAAP diluted net income per share of $0.11 in the second quarter of fiscal year 2024.
    • Cash and cash equivalents were $285.6 million as of December 31, 2024, compared to $208.4 million as of June 30, 2024.
    • For the six months ended December 31, 2024, net cash provided by operating activities was $49.7 million, compared to net cash provided by operating activities of $23.6 million for the six months ended December 31, 2023.

    Business Highlights

    • As of December 31, 2024, we served more than 2,650 clients, 728 of which each had contracts greater than $100,000 of ARR.
    • We upsold and cross-sold our existing clients such that our trailing twelve months’ cloud net revenue retention rate as of December 31, 2024 was 119%.
    • We continued to add new clients and expand existing accounts including accounting firm Milsted Langdon and consulting firm Alvarez & Marsal. 
    • We were named to Forbes’ America’s Most Successful Mid-Cap Companies listing for 2024. 
    • Intapp DealCloud won bronze in the Enterprise Product of the Year – Software category at the 2024 Best in Biz Awards.

    Third Quarter and Full Fiscal Year 2025 Outlook

      Fiscal 2025 Outlook
      Third Quarter Fiscal Year
      (in millions, except per share data)
    SaaS revenue $84.0 – $85.0 $328.8 – $332.8
    Total revenue $128.3 – $129.3 $498.5 – $502.5
    Non-GAAP operating income $18.5 – $19.5 $70.2 – $74.2
    Non-GAAP diluted net income per share $0.21 – $0.23 $0.83 – $0.87
         

    The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    The information presented in this press release includes non-GAAP financial measures such as “non-GAAP operating income,” “non-GAAP net income,” and “non-GAAP diluted net income per share.” Refer to “Non-GAAP Financial Measures and Other Metrics” for a discussion of these measures and the financial tables below for reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

    The guidance regarding non-GAAP operating income excludes known pre-tax charges related to estimated stock-based compensation of $23.4 million for the third quarter of fiscal year 2025 and $90.6 million for fiscal year 2025 and amortization of intangible assets of $2.7 million for the third quarter of fiscal year 2025 and $11.2 million for fiscal year 2025. The guidance regarding non-GAAP diluted net income per share excludes known pre-tax charges related to estimated stock-based compensation of $0.28 per share for the third quarter of fiscal year 2025 and $1.08 per share for fiscal year 2025 and amortization of intangible assets of $0.03 per share for the third quarter of fiscal year 2025 and $0.13 per share for fiscal year 2025. The Company has not included a quantitative reconciliation of its guidance for non-GAAP operating income and non-GAAP diluted net income per share to their most directly comparable GAAP financial measures, other than stock-based compensation and amortization of intangible assets, because certain of these reconciling items, including change in fair value of contingent consideration, transaction costs, restructuring and other costs and income tax effect of non-GAAP adjustments, could be highly variable and cannot be reasonably predicted without unreasonable effort. This is due to the inherent difficulty of forecasting the timing of certain events that have not yet occurred and are out of the Company’s control and the amounts of associated reconciling items. Please note that the unavailable reconciling items could significantly impact the Company’s GAAP operating results.

    Corporate Presentation

    A supplemental financial presentation and other information will be accessible through Intapp’s investor relations website at https://investors.intapp.com/.

    Webcast
    Intapp will host a conference call for analysts and investors on Tuesday, February 4, 2025, beginning at 2:00 p.m. PT (5:00 p.m. ET). The call will be webcast live via the “Investors” section of the Intapp company website at https://investors.intapp.com/. A replay of the call will be available through the Intapp website for 90 days.

    About Intapp

    Intapp software helps professionals unlock their teams’ knowledge, relationships, and operational insights to increase value for their firms. Using the power of Applied AI, we make firm and market intelligence easy to find, understand, and use. With Intapp’s portfolio of vertical SaaS solutions, professionals can apply their collective expertise to make smarter decisions, manage risk, and increase competitive advantage. The world’s top firms — across accounting, consulting, investment banking, legal, private capital, and real assets — trust Intapp’s industry-specific platform and solutions to modernize and drive new growth.

    Forward-Looking Statements

    This press release contains express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the third quarter and full fiscal year 2025, growth strategy, business plans and market position. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” “expand,” “outlook” or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: our ability to continue our growth at or near historical rates; our future financial performance and ability to be profitable; the effect of global events on the U.S. and global economies, our business, our employees, our results of operations, our financial condition, demand for our products, sales and implementation cycles, and the health of our clients’ and partners’ businesses; our ability to prevent and respond to data breaches, unauthorized access to client data or other disruptions of our solutions; our ability to effectively manage U.S. and global market and economic conditions, including inflationary pressures, economic and market downturns and volatility in the financial services industry, particularly adverse to our targeted industries; the length and variability of our sales cycle; our ability to attract and retain clients; our ability to attract and retain talent; our ability to compete in highly competitive markets, including AI products; our ability to manage additional complexity, burdens, and volatility in connection with our international sales and operations; the successful assimilation or integration of the businesses, technologies, services, products, personnel or operations of acquired companies; our ability to incur indebtedness in the future and the effect of conditions in credit markets; the sufficiency of our cash and cash equivalents to meet our liquidity needs; and our ability to maintain, protect, and enhance our intellectual property rights. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and any subsequent public filings. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. We assume no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

    Presentation Changes Related to SaaS and License Revenue

    Effective July 1, 2024, the Company adjusted the classification of support services related to subscription license to be included within “license” on the unaudited condensed consolidated statements of operations. Prior to July 1, 2024, support services related to subscription license were included in a line item entitled “SaaS and Support.” Accordingly, effective July 1, 2024, SaaS revenues include subscription fees from clients accessing our SaaS solutions, premium support services related to SaaS, and updates, if any, to the subscribed service during the subscription term. There was no change to the Company’s revenue recognition policy, except for the change in classification noted herein.

    The presentation of cost of revenues has been conformed to reflect the changes related to the presentation of revenues. Such reclassifications related to the presentation of revenues and cost of revenues did not affect total revenues, operating income, or net income.

    Non-GAAP Financial Measures and Other Metrics

    This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted net income per share. These non-GAAP measures exclude the impact of stock-based compensation, amortization of intangible assets, change in fair value of contingent consideration, transaction costs, restructuring and other costs and the income tax effect of non-GAAP adjustments. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

    Free cash flow is a non-GAAP financial measure, and a supplemental liquidity measure that management uses to evaluate our core operating business and our ability to meet our current and future financing and investing needs. It consists of net cash provided by operating activities less cash paid for purchases of property and equipment. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

    Other metrics include total ARR, Cloud ARR and Cloud net revenue retention rate. Total ARR represents the annualized recurring value of all active SaaS and on-premise subscription license contracts at the end of a reporting period. Cloud ARR is the portion of the annualized recurring value of our active SaaS contracts at the end of a reporting period. Contracts with a term other than one year are annualized by taking the committed contract value for the current period divided by number of days in that period, then multiplying by 365. Cloud net revenue retention rate is the portion of our net revenue retention rate, which represents the net revenue retention of our SaaS contracts. We calculate Cloud net revenue retention by starting with the Cloud ARR from the cohort of all clients as of the twelve months prior to the applicable fiscal period, or prior period Cloud ARR. We then calculate the Cloud ARR from these same clients as of the current fiscal period, or current period Cloud ARR. We then divide the current period Cloud ARR by the prior period Cloud ARR to calculate the Cloud net revenue retention.

    We believe these non-GAAP financial measures and metrics provide useful information to investors as they are used by management to manage the business, make planning decisions, evaluate our performance, and allocate resources and provide useful information regarding certain financial and business trends relating to our financial condition and results of operations. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

    Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of intangible assets, change in fair value of contingent consideration, transaction costs, restructuring and other costs and the income tax effect of non-GAAP adjustments. Non-GAAP diluted net income per share is calculated by dividing non-GAAP net income by the estimated diluted weighted average shares outstanding for the period.

    Investor Contact
    David Trone
    Senior Vice President, Investor Relations
    Intapp, Inc.
    ir@intapp.com

    Media Contact
    Ali Robinson
    Global Media Relations Director
    Intapp, Inc.
    press@intapp.com

     
    INTAPP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited, in thousands, except per share data and percentages)
     
        Three Months
    Ended December 31,    		     Six Months
    Ended December 31,    		  
        2024     2023     2024     2023  
    Revenues                        
    SaaS   $ 79,976     $ 63,117     $ 156,852     $ 122,030  
    License     28,017       28,135       56,509       56,186  
    Professional services     13,216       12,681       26,653       27,292  
    Total revenues     121,209       103,933       240,014       205,508  
    Cost of revenues                        
    SaaS     16,292       12,810       31,610       25,521  
    License     1,630       1,606       3,382       3,308  
    Professional services     14,549       16,353       29,413       33,513  
    Total cost of revenues     32,471       30,769       64,405       62,342  
    Gross profit     88,738       73,164       175,609       143,166  
    Gross margin     73.2 %     70.4 %     73.2 %     69.7 %
    Operating expenses:                        
    Research and development     33,325       27,981       65,752       56,477  
    Sales and marketing     40,791       35,269       78,551       69,688  
    General and administrative     24,808       20,996       48,746       42,048  
    Total operating expenses     98,924       84,246       193,049       168,213  
    Operating loss     (10,186 )     (11,082 )     (17,440 )     (25,047 )
    Interest and other income (expense), net     (202 )     2,057       3,220       1,114  
    Net loss before income taxes     (10,388 )     (9,025 )     (14,220 )     (23,933 )
    Income tax benefit (expense)     171       (188 )     (517 )     (601 )
    Net loss   $ (10,217 )   $ (9,213 )   $ (14,737 )   $ (24,534 )
    Net loss per share, basic and diluted   $ (0.13 )   $ (0.13 )   $ (0.19 )   $ (0.35 )
    Weighted-average shares used to compute net loss per share, basic and diluted     78,118       70,521       76,861       69,729  
                                     
     
    INTAPP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in thousands)
     
        December 31, 2024     June 30, 2024  
    Assets            
    Current assets:            
    Cash and cash equivalents   $ 285,631     $ 208,370  
    Restricted cash     200       200  
    Accounts receivable, net     87,596       95,103  
    Unbilled receivables, net     13,786       13,300  
    Other receivables, net     4,412       2,743  
    Prepaid expenses     11,284       9,031  
    Deferred commissions, current     14,232       13,907  
    Total current assets     417,141       342,654  
    Property and equipment, net     20,172       18,944  
    Operating lease right-of-use assets     18,426       21,382  
    Goodwill     285,907       285,969  
    Intangible assets, net     34,351       40,293  
    Deferred commissions, noncurrent     18,335       18,495  
    Other assets     6,255       5,262  
    Total assets   $ 800,587     $ 732,999  
    Liabilities and Stockholders’ Equity            
    Current liabilities:            
    Accounts payable   $ 16,631     $ 13,348  
    Accrued compensation     35,045       42,066  
    Accrued expenses     7,266       12,040  
    Deferred revenue, net     234,962       218,923  
    Other current liabilities     12,243       14,270  
    Total current liabilities     306,147       300,647  
    Deferred tax liabilities     1,255       1,336  
    Deferred revenue, noncurrent     3,033       3,563  
    Operating lease liabilities, noncurrent     17,409       19,605  
    Other liabilities     4,353       4,610  
    Total liabilities     332,197       329,761  
    Stockholders’ equity:            
    Common stock     79       75  
    Additional paid-in capital     971,631       891,681  
    Accumulated other comprehensive loss     (1,401 )     (1,336 )
    Accumulated deficit     (501,919 )     (487,182 )
    Total stockholders’ equity     468,390       403,238  
    Total liabilities and stockholders’ equity   $ 800,587     $ 732,999  
     
     
    INTAPP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in thousands)
     
        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    Cash Flows from Operating Activities:                        
    Net loss   $ (10,217 )   $ (9,213 )   $ (14,737 )   $ (24,534 )
    Adjustments to reconcile net loss to net cash provided by operating activities:                        
    Depreciation and amortization     4,372       3,975       8,839       7,984  
    Amortization of operating lease right-of-use assets     1,278       1,152       2,558       2,282  
    Accounts receivable allowances     273       803       823       1,228  
    Stock-based compensation     25,411       16,508       45,400       35,265  
    Change in fair value of contingent consideration     —       (784 )     (1,004 )     (2,215 )
    Deferred income taxes     (26 )     (104 )     (74 )     (217 )
    Other     38       39       76       77  
    Changes in operating assets and liabilities:                        
    Accounts receivable     (23,742 )     (10,902 )     6,465       12,570  
    Unbilled receivables, current     (1,009 )     (1,888 )     (486 )     (5,774 )
    Prepaid expenses and other assets     (2,433 )     (446 )     (5,001 )     (1,788 )
    Deferred commissions     (1,832 )     (1,189 )     (165 )     (1,068 )
    Accounts payable and accrued liabilities     185       9,760       (7,875 )     (1,517 )
    Deferred revenue, net     32,784       4,615       15,509       4,837  
    Operating lease liabilities     (1,344 )     (768 )     (2,675 )     (2,339 )
    Other liabilities     1,501       477       2,032       (1,144 )
    Net cash provided by operating activities     25,239       12,035       49,685       23,647  
    Cash Flows from Investing Activities:                        
    Purchases of property and equipment     (62 )     (213 )     (416 )     (1,354 )
    Capitalized internal-use software costs     (1,915 )     (1,592 )     (3,449 )     (3,453 )
    Business combinations, net of cash acquired     —       —       (897 )     —  
    Net cash used in investing activities     (1,977 )     (1,805 )     (4,762 )     (4,807 )
    Cash Flows from Financing Activities:                        
    Payments for deferred offering costs     —       (148 )     —       (781 )
    Proceeds from stock option exercises     9,666       15,612       32,584       17,936  
    Proceeds from employee stock purchase plan     1,970       1,725       1,970       1,725  
    Payments of deferred contingent consideration and holdback associated with acquisitions     (1,023 )     (2,551 )     (2,410 )     (2,551 )
    Net cash provided by financing activities     10,613       14,638       32,144       16,329  
    Effect of foreign currency exchange rate changes on cash and cash equivalents     (2,091 )     (58 )     194       203  
    Net increase in cash, cash equivalents and restricted cash     31,784       24,810       77,261       35,372  
    Cash, cash equivalents and restricted cash – beginning of period     254,047       141,747       208,570       131,185  
    Cash, cash equivalents and restricted cash – end of period   $ 285,831     $ 166,557     $ 285,831     $ 166,557  
     
     

    INTAPP, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (Unaudited, in thousands, except per share data and percentages)

    The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below:

    Non-GAAP Gross Profit

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    GAAP gross profit   $ 88,738     $ 73,164     $ 175,609     $ 143,166  
    Adjusted to exclude the following:                        
    Stock-based compensation     2,702       2,018       4,934       3,892  
    Amortization of intangible assets     1,509       1,055       3,080       2,110  
    Restructuring and other costs     53       —       62       —  
    Non-GAAP gross profit   $ 93,002     $ 76,237     $ 183,685     $ 149,168  
    Non-GAAP gross margin     76.7 %     73.4 %     76.5 %     72.6 %
     

    Non-GAAP Operating Expenses

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    GAAP research and development   $ 33,325     $ 27,981     $ 65,752     $ 56,477  
    Stock-based compensation     (6,800 )     (4,468 )     (11,424 )     (9,114 )
    Restructuring and other costs     (113 )     —       (162 )     —  
    Non-GAAP research and development   $ 26,412     $ 23,513     $ 54,166     $ 47,363  
                             
                             
    GAAP sales and marketing   $ 40,791     $ 35,269     $ 78,551     $ 69,688  
    Stock-based compensation     (7,232 )     (4,888 )     (12,970 )     (10,227 )
    Amortization of intangible assets     (1,268 )     (1,396 )     (2,536 )     (2,883 )
    Non-GAAP sales and marketing   $ 32,291     $ 28,985     $ 63,045     $ 56,578  
                             
                             
    GAAP general and administrative   $ 24,808     $ 20,996     $ 48,746     $ 42,048  
    Stock-based compensation     (8,677 )     (5,134 )     (16,072 )     (12,032 )
    Amortization of intangible assets     (163 )     (163 )     (326 )     (326 )
    Change in fair value of contingent consideration     —       784       1,004       2,215  
    Transaction costs (1)     (530 )     (350 )     (664 )     (678 )
    Restructuring and other costs     (64 )     —       (236 )     —  
    Non-GAAP general and administrative   $ 15,374     $ 16,133     $ 32,452     $ 31,227  
     

    Non-GAAP Operating Income

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    GAAP operating loss   $ (10,186 )   $ (11,082 )   $ (17,440 )   $ (25,047 )
    Adjusted to exclude the following:                        
    Stock-based compensation     25,411       16,508       45,400       35,265  
    Amortization of intangible assets     2,940       2,614       5,942       5,319  
    Change in fair value of contingent consideration     —       (784 )     (1,004 )     (2,215 )
    Transaction costs (1)     530       350       664       678  
    Restructuring and other costs     230       —       460       —  
    Non-GAAP operating income   $ 18,925     $ 7,606     $ 34,022     $ 14,000  
     

    Non-GAAP Net Income

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    GAAP net loss   $ (10,217 )   $ (9,213 )   $ (14,737 )   $ (24,534 )
    Adjusted to exclude the following:                        
    Stock-based compensation     25,411       16,508       45,400       35,265  
    Amortization of intangible assets     2,940       2,614       5,942       5,319  
    Change in fair value of contingent consideration     —       (784 )     (1,004 )     (2,215 )
    Transaction costs (1)     530       350       664       678  
    Restructuring and other costs     230       —       460       —  
    Income tax effect of non-GAAP adjustments     (1,489 )     (710 )     (2,513 )     (1,125 )
    Non-GAAP net income   $ 17,405     $ 8,765     $ 34,212     $ 13,388  
                             
    GAAP net loss per share, basic and diluted   $ (0.13 )   $ (0.13 )   $ (0.19 )   $ (0.35 )
    Non-GAAP net income per share, diluted   $ 0.21     $ 0.11     $ 0.41     $ 0.17  
                             
    Weighted-average shares used to compute GAAP net loss per share, basic and diluted     78,118       70,521       76,861       69,729  
    Weighted-average shares used to compute non-GAAP net income per share, diluted     83,910       80,285       82,724       79,926  
     

    Free Cash Flow

        Three Months Ended
    December 31,    		     Six Months Ended
    December 31,    		  
        2024     2023     2024     2023  
    Net cash provided by operating activities   $ 25,239     $ 12,035     $ 49,685     $ 23,647  
    Adjusted for the following cash outlay:                        
    Purchases of property and equipment     (62 )     (213 )     (416 )     (1,354 )
    Free cash flow (2)   $ 25,177     $ 11,822     $ 49,269     $ 22,293  
     

    (1) Consists of acquisition-related transaction costs, costs related to a legal settlement incurred in connection with an acquisition and costs related to certain non-capitalized offering-related expenses.

    (2) Beginning with the second quarter ended December 31, 2023, we have excluded capitalized internal-use software costs and cash paid for interest from the calculation of our free cash flow, which we believe better aligns with industry standard. Our free cash flow for prior period presented were recast to conform to the updated methodology and are reflected herein for comparison purposes.

    The MIL Network –

  • MIL-OSI: Runway Growth Finance Corp. Announces Date for Fourth Quarter and Full Year 2024 Financial Results and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    MENLO PARK, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced that it will release its fourth quarter and full year 2024 financial results after market close on Thursday, March 20, 2025. Runway Growth will discuss its financial results on a conference call that day at 2:00 p.m. PT (5:00 p.m. ET).

    To participate in the conference call or webcast, participants should register online at the Runway Growth Investor Relations website. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. The earnings call can also be accessed through the following links:

    A replay of the webcast will be available two hours after the call and archived on the same web page for 90 days.

    About Runway Growth Finance Corp.
    Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940. Runway Growth is externally managed by Runway Growth Capital LLC, an established registered investment advisor that was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.

    Forward-Looking Statements
    Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Runway Growth’s filings with the Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

    IR Contacts:
    Taylor Donahue, Prosek Partners, rway@prosek.com
    Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com

    The MIL Network –

  • MIL-OSI: Varonis Announces Fourth Quarter 2024 and Full-Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Annual recurring revenues grew 18% year-over-year
    SaaS ARR as a percentage of total ARR was approximately 53%
    Year-to-date cash from operations generated $115.2 million vs. $59.4 million last year
    Year-to-date free cash flow generated $108.5 million vs. $54.3 million last year

    NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) — Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced financial results for the fourth quarter and full-year ended December 31, 2024.

    Yaki Faitelson, Varonis CEO, said, “We are excited by the approximately 50% increase in ARR from new customers, which was driven by the simplicity of SaaS and MDDR as well as customer interest in utilizing Generative AI raising awareness for our solution. We look forward to continuing our momentum and completing our SaaS transition in 2025, which will unlock many more benefits as we capture our massive opportunity.”

    Guy Melamed, Varonis CFO & COO, added, “For the first time in company history, SaaS represents a majority of ARR as we finished the fourth quarter with 53% of total company ARR coming from SaaS. This demand positions the company for another year of strong ARR growth and continued improvement in free cash flow generation, while we make strategic investments aimed at supporting our goal of returning to more than 20% ARR growth.”

    Financial Summary for the Fourth Quarter Ended December 31, 2024

    • Total revenues were $158.5 million, compared with $154.1 million in the fourth quarter of 2023.
    • SaaS revenues were $72.2 million, compared with $23.0 million in the fourth quarter of 2023.
    • Term license subscription revenues were $66.8 million, compared with $106.2 million in the fourth quarter of 2023.
    • Maintenance and services revenues were $19.5 million, compared with $24.9 million in the fourth quarter of 2023.
    • GAAP operating loss was ($17.6) million, compared to GAAP operating loss of ($5.2) million in the fourth quarter of 2023.
    • Non-GAAP operating income was $15.3 million, compared to non-GAAP operating income of $27.2 million in the fourth quarter of 2023.

    Financial Summary for the Year Ended December 31, 2024

    • Total revenues were $551.0 million, compared with $499.2 million in 2023.
    • SaaS revenues were $208.8 million, compared with $44.4 million in 2023.
    • Term license subscription revenues were $254.2 million, compared with $356.5 million in 2023.
    • Maintenance and services revenues were $87.9 million, compared with $98.3 million in 2023.
    • GAAP operating loss was ($117.7) million, compared to GAAP operating loss of ($117.2) million in 2023.
    • Non-GAAP operating income was $15.9 million, compared to non-GAAP operating income of $28.7 million in 2023.

    The tables at the end of this press release include a reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss) and GAAP net income (loss) to non-GAAP net income (loss) for the three and twelve months ended December 31, 2024 and 2023. An explanation of these measures is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

    Key Performance Indicators and Recent Business Highlights

    • Annual recurring revenues, or ARR, was $641.9 million as of the end of the fourth quarter, up 18% year-over-year.
    • As of December 31, 2024, the Company had $1.2 billion in cash and cash equivalents, short-term deposits and short-term and long-term marketable securities.
    • During the twelve months ended December 31, 2024, the Company generated $115.2 million of cash from operations, compared to $59.4 million generated in the prior year period.
    • During the twelve months ended December 31, 2024, the Company generated $108.5 million of free cash flow, compared to $54.3 million generated in the prior year period.
    • Announced expansion of IaaS security coverage to Google Cloud, bringing the company’s proven data-centric approach to Google Cloud storage and data warehouses.
    • Expanded coverage to discover and classify critical data, remove exposures, and detect threats on the Databricks Data Intelligence Platform.
    • Broadened coverage to continuously discover and classify data and resolve issues related to data risk and overexposure within ServiceNow.

    An explanation of ARR is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.” In addition, the tables at the end of this press release include a reconciliation of net cash provided by operating activities to non-GAAP free cash flow. An explanation of this measure is also included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

    Financial Outlook

    For the first quarter of 2025, the Company expects:

    • Revenues of $130.0 million to $135.0 million, or year-over-year growth of 14% to 18%.
    • Non-GAAP operating loss of ($14.0) million to ($11.0) million.
    • Non-GAAP net loss per diluted share in the range of ($0.06) to ($0.04), based on 113.6 million diluted shares outstanding.

    For full year 2025, the Company expects:

    • ARR of $737.0 million to $745.0 million, or year-over-year growth of 15% to 16%.
    • Net cash provided by operating activities of $132.0 million to $139.0 million.
    • Free cash flow of $120.0 million to $125.0 million.
    • Revenues of $610.0 million to $625.0 million, or year-over-year growth of 11% to 13%.
    • Non-GAAP operating income of $0.5 million to $10.5 million.
    • Non-GAAP net income per diluted share in the range of $0.13 to $0.17, based on 137.5 million diluted shares outstanding.

    Actual results may differ materially from the Company’s Financial Outlook as a result of, among other things, the factors described below under “Forward-Looking Statements”.

    Conference Call and Webcast
    Varonis will host a conference call today, Tuesday, February 4, 2025, at 4:30 p.m. Eastern Time, to discuss the Company’s fourth quarter 2024 and full-year 2024 financial results. To access this call, dial 877-425-9470 (domestic) or 201-389-0878 (international). The passcode is 13750890. A replay of this conference call will be available through February 11, 2025 at 844-512-2921 (domestic) or 412-317-6671 (international). The replay passcode is 13750890. A live webcast of this conference call will be available on the “Investors” page of the Company’s website (www.varonis.com), and a replay will be archived on the website as well.

    Non-GAAP Financial Measures and Key Performance Indicators
    Varonis believes that the use of non-GAAP operating income (loss) and non-GAAP net income (loss) is helpful to our investors. These measures, which the Company refers to as our non-GAAP financial measures, are not prepared in accordance with GAAP.

    Non-GAAP operating income (loss) is calculated as operating income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, and (iii) amortization of acquired intangible assets and acquisition-related expenses.

    Non-GAAP net income (loss) is calculated as net income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, (iii) amortization of acquired intangible assets and acquisition-related expenses, (iv) foreign exchange gains (losses) which include exchange rate differences on lease contracts as a result of the implementation of ASC 842 and (v) amortization of debt issuance costs.

    The Company believes that the exclusion of these expenses provides a more meaningful comparison of our operational performance from period to period and offers investors and management greater visibility to the underlying performance of our business. Specifically:

    • Stock-based compensation expenses utilize varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expenses;
    • Payroll taxes are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, factors which may vary from period to period;
    • Acquired intangible assets are valued at the time of acquisition and are amortized over an estimated useful life after the acquisition, and acquisition-related expenses are unrelated to current operations and neither are comparable to the prior period nor predictive of future results;
    • The Company incurs foreign exchange gains or losses from the revaluation of its significant operating lease liabilities in foreign currencies as well as other assets and liabilities denominated in non-U.S. dollars, which may vary from period to period; and
    • Amortization of debt issuance costs, which relate to the Company’s convertible senior notes issued in 2020 and 2024, are a non-cash item.

    Free cash flow is calculated as net cash provided by or used in operating activities less purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by or used in our operations that, after the investments in property and equipment, can be used for strategic initiatives.

    Each of our non-GAAP financial measures is an important tool for financial and operational decision making and for evaluating our own operating results over different periods of time. The non-GAAP financial measures do not represent our financial performance under U.S. GAAP and should not be considered as alternatives to operating income (loss) or net income (loss) or any other performance measures derived in accordance with GAAP. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense and payroll tax expense related to stock-based compensation have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of the compensation provided to our employees. Also, the amortization of intangible assets are expected recurring expenses over the estimated useful life of the underlying intangible asset and acquisition-related expenses will be incurred to the extent acquisitions are made in the future. Additionally, foreign exchange rates may fluctuate from one period to another, and the Company does not estimate movements in foreign currencies. Finally, the amortization of debt issuance costs are expected recurring expenses until the maturity of the senior notes in 2029.

    The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Varonis urges investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measures to evaluate our business.

    A reconciliation for non-GAAP operating income (loss) and non-GAAP net income (loss) referred to in our “Financial Outlook” is not provided because, as forward-looking statements, such reconciliation is not available without unreasonable effort due to the high variability, complexity, and difficulty of estimating certain items such as charges to stock-based compensation expense and currency fluctuations which could have an impact on our consolidated results. The Company believes the information provided is useful to investors because it can be considered in the context of the Company’s historical disclosures of this measure.

    ARR is a key performance indicator defined as the annualized value of active SaaS contracts, term-based subscription license contracts, and maintenance contracts in effect at the end of that period. SaaS contracts, term-based subscription license contracts, and maintenance contracts are annualized by dividing the total contract value by the number of days in the term and multiplying the result by 365. The annualized value of contracts is a legal and contractual determination made by assessing the contractual terms with our customers. The annualized value of maintenance contracts is not determined by reference to historical revenues, deferred revenues or any other GAAP financial measure over any period. ARR is not a forecast of future revenues, which can be impacted by contract start and end dates and renewal rates.

    Forward-Looking Statements

    This press release contains, and statements made during the above referenced conference call will contain, “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the Company’s growth rate and its expectations regarding future revenues, operating income or loss or earnings or loss per share. These statements are not guarantees of future performance but are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: the impact of potential information technology, cybersecurity or data security breaches; risks associated with anticipated growth in Varonis’ addressable market; general economic and industry conditions, such as foreign currency exchange rate fluctuations and expenditure trends for data and cybersecurity solutions; Varonis’ ability to predict the timing and rate of subscription renewals and their impact on the Company’s future revenues and operating results; risks associated with international operations; the impact of global conflicts on the budgets of our clients and on economic conditions generally; competitive factors, including increased sales cycle time, changes in the competitive environment, pricing changes and increased competition; the risk that Varonis may not be able to attract or retain employees, including sales personnel and engineers; Varonis’ ability to build and expand its direct sales efforts and reseller distribution channels; risks associated with the closing of large transactions, including Varonis’ ability to close large transactions consistently on a quarterly basis; new product introductions and Varonis’ ability to develop and deliver innovative products; Varonis’ ability to provide high-quality service and support offerings; the expansion of cloud-delivered services; and risks associated with our convertible notes and capped-call transactions. These and other important risk factors are described more fully in Varonis’ reports and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof, and Varonis undertakes no duty to update or revise this information, whether as a result of new information, new developments or otherwise, except as required by law.

    About Varonis

    Varonis (Nasdaq: VRNS) is a leader in data security, fighting a different battle than conventional cybersecurity companies. Our cloud-native Data Security Platform continuously discovers and classifies critical data, removes exposures, and detects advanced threats with AI-powered automation.

    Thousands of organizations worldwide trust Varonis to defend their data wherever it lives — across SaaS, IaaS, and hybrid cloud environments. Customers use Varonis to automate a wide range of security outcomes, including data security posture management (DSPM), data classification, data access governance (DAG), data detection and response (DDR), data loss prevention (DLP), and insider risk management.

    Varonis protects data first, not last. Learn more at www.varonis.com.

    Investor Relations Contact:
    Tim Perz
    Varonis Systems, Inc.
    646-640-2112
    investors@varonis.com 

    News Media Contact:
    Rachel Hunt
    Varonis Systems, Inc.
    877-292-8767 (ext. 1598)
    pr@varonis.com 

    Varonis Systems, Inc.
    Consolidated Statements of Operations
    (in thousands, except for share and per share data)
     
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024     2023     2024     2023 
      Unaudited   Unaudited    
    Revenues:              
    Term license subscriptions $ 66,781     $ 106,184     $ 254,241     $ 356,490  
    SaaS   72,206       22,980       208,781       44,417  
    Maintenance and services   19,527       24,935       87,928       98,253  
    Total revenues   158,514       154,099       550,950       499,160  
                   
    Cost of revenues   26,055       19,347       93,847       71,751  
                   
    Gross profit   132,459       134,752       457,103       427,409  
                   
    Operating expenses:              
    Research and development   50,546       48,144       196,765       183,838  
    Sales and marketing   76,123       70,569       288,769       277,893  
    General and administrative   23,342       21,283       89,220       82,901  
    Total operating expenses   150,011       139,996       574,754       544,632  
                   
    Operating loss   (17,552 )     (5,244 )     (117,651 )     (117,223 )
    Financial income, net   7,605       5,433       34,644       30,305  
                   
    Income (loss) before income taxes   (9,947 )     189       (83,007 )     (86,918 )
    Income taxes   (3,047 )     (1,087 )     (12,758 )     (13,998 )
                   
    Net loss $ (12,994 )   $ (898 )   $ (95,765 )   $ (100,916 )
                   
    Net loss per share of common stock, basic and diluted $ (0.12 )   $ (0.01 )   $ (0.86 )   $ (0.92 )
                   
    Weighted average number of shares used in computing net loss per share of common stock, basic and diluted   112,488,376       109,007,859       111,660,541       109,141,894  
    Stock-based compensation expense for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 1,175   $ 1,275   $ 5,192   $ 7,221
    Research and development   10,709     11,199     41,766     48,679
    Sales and marketing   10,509     10,186     41,494     48,047
    General and administrative   10,176     8,983     38,230     35,872
      $ 32,569   $ 31,643   $ 126,682   $ 139,819
    Payroll tax expense related to stock-based compensation for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 6   $ 20   $ 637   $ 405
    Research and development   38     133     604     365
    Sales and marketing   146     152     3,196     1,972
    General and administrative   16     32     1,181     518
      $ 206   $ 337   $ 5,618   $ 3,260
    Amortization of acquired intangibles and acquisition-related expenses for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 119   $ 381   $ 1,263   $ 1,525
    Research and development   —     128     —     1,363
    Sales and marketing   —     —     —     —
    General and administrative   —     —     —     —
      $ 119   $ 509   $ 1,263   $ 2,888
    Varonis Systems, Inc.
    Consolidated Balance Sheets
    (in thousands)
     
      December 31, 2024   December 31, 2023
      Unaudited    
    Assets      
    Current assets:      
    Cash and cash equivalents $ 185,585     $ 230,740  
    Marketable securities   343,383       253,175  
    Short-term deposits   39,450       49,800  
    Trade receivables, net   192,832       169,116  
    Prepaid expenses and other short-term assets   116,824       64,326  
    Total current assets   878,074       767,157  
    Long-term assets:      
    Long-term marketable securities   658,896       211,063  
    Operating lease right-of-use assets   45,593       51,838  
    Property and equipment, net   30,795       33,964  
    Intangible assets, net   —       1,263  
    Goodwill   23,135       23,135  
    Other assets   27,782       15,490  
    Total long-term assets   786,201       336,753  
    Total assets $ 1,664,275     $ 1,103,910  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Trade payables $ 4,313     $ 672  
    Accrued expenses and other short-term liabilities   164,930       125,057  
    Convertible senior notes, net   250,529       —  
    Deferred revenues   290,113       181,049  
    Total current liabilities   709,885       306,778  
    Long-term liabilities:      
    Convertible senior notes, net   450,243       250,477  
    Operating lease liabilities   42,789       51,313  
    Deferred revenues   2,211       886  
    Other liabilities   3,491       4,808  
    Total long-term liabilities   498,734       307,484  
           
    Stockholders’ equity:      
    Share capital      
    Common stock   113       109  
    Accumulated other comprehensive income (loss)   2,676       (8,649 )
    Additional paid-in capital   1,193,022       1,142,578  
    Accumulated deficit   (740,155 )     (644,390 )
    Total stockholders’ equity   455,656       489,648  
    Total liabilities and stockholders’ equity $ 1,664,275     $ 1,103,910  
    Varonis Systems, Inc.
    Consolidated Statements of Cash Flows
    (in thousands)
     
      Twelve Months Ended
    December 31,
       2024     2023 
      Unaudited    
    Cash flows from operating activities:      
    Net loss $ (95,765 )   $ (100,916 )
    Adjustments to reconcile net loss to net cash provided by operating activities:      
    Depreciation and amortization   11,126       11,703  
    Stock-based compensation   126,682       139,819  
    Amortization of deferred commissions   54,392       53,072  
    Non-cash operating lease costs   9,526       9,468  
    Amortization of debt issuance costs   2,144       1,514  
    Amortization of premium and accretion of discount on marketable securities, net   (12,690 )     (9,354 )
    Acquired in-process research and development   6,653       —  
           
    Changes in assets and liabilities:      
    Trade receivables   (23,716 )     (33,137 )
    Prepaid expenses and other short-term assets   (35,332 )     (21,459 )
    Deferred commissions   (59,820 )     (53,505 )
    Other long-term assets   347       (577 )
    Trade payables   3,641       (2,290 )
    Accrued expenses and other short-term liabilities   17,317       (5,278 )
    Deferred revenues   110,389       69,882  
    Other long-term liabilities   306       474  
    Net cash provided by operating activities   115,200       59,416  
           
    Cash flows from investing activities:      
    Proceeds from maturities of marketable securities   308,840       301,350  
    Proceeds from sales of marketable securities   111,552       —  
    Investment in marketable securities   (949,841 )     (517,948 )
    Proceeds from short-term and long-term deposits   34,795       214,444  
    Investment in short-term and long-term deposits   (24,254 )     (135,823 )
    Purchase of in-process research and development   (6,653 )     —  
    Purchases of property and equipment   (6,694 )     (5,099 )
    Net cash used in investing activities   (532,255 )     (143,076 )
           
    Cash flows from financing activities:      
    Proceeds from issuance of convertible senior notes, net of issuance costs   449,635       —  
    Purchases of capped calls   (55,522 )     —  
    Proceeds from employee stock plans   16,082       11,537  
    Taxes paid related to net share settlement of equity awards   (38,295 )     (21,415 )
    Repurchase of common stock   —       (43,522 )
    Net cash provided by (used in) financing activities   371,900       (53,400 )
    Decrease in cash and cash equivalents   (45,155 )     (137,060 )
    Cash and cash equivalents at beginning of period   230,740       367,800  
    Cash and cash equivalents at end of period $ 185,585     $ 230,740  
    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in thousands, except share and per share data)
     
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024     2023     2024     2023 
      Unaudited   Unaudited
    Reconciliation to non-GAAP operating income:              
                   
    GAAP operating loss $ (17,552 )   $ (5,244 )   $ (117,651 )   $ (117,223 )
                   
    Add back:              
    Stock-based compensation expense   32,569       31,643       126,682       139,819  
    Payroll tax expenses related to stock-based compensation   206       337       5,618       3,260  
    Amortization of acquired intangible assets and acquisition-related expenses   119       509       1,263       2,888  
    Non-GAAP operating income $ 15,342     $ 27,245     $ 15,912     $ 28,744  
                   
    Reconciliation to non-GAAP net income:              
                   
    GAAP net loss $ (12,994 )   $ (898 )   $ (95,765 )   $ (100,916 )
                   
    Add back:              
    Stock-based compensation expense   32,569       31,643       126,682       139,819  
    Payroll tax expenses related to stock-based compensation   206       337       5,618       3,260  
    Amortization of acquired intangible assets and acquisition-related expenses   119       509       1,263       2,888  
    Foreign exchange rate differences, net   3,129       2,290       827       (916 )
    Amortization of debt issuance costs   880       381       2,144       1,514  
    Non-GAAP net income $ 23,909     $ 34,262     $ 40,769     $ 45,649  
                   
    GAAP weighted average number of shares used in computing net loss per share of common stock – basic and diluted   112,488,376       109,007,859       111,660,541       109,141,894  
    Non-GAAP weighted average number of shares used in computing net income per share of common stock – basic   112,488,376       109,007,859       111,660,541       109,141,894  
    Non-GAAP weighted average number of shares used in computing net income per share of common stock – diluted   135,097,388       126,061,869       130,278,825       126,585,777  
                   
    GAAP net loss per share of common stock – basic and diluted $ (0.12 )   $ (0.01 )   $ (0.86 )   $ (0.92 )
    Non-GAAP net income per share of common stock – basic $ 0.21     $ 0.31     $ 0.37     $ 0.42  
    Non-GAAP net income per share of common stock – diluted $ 0.18     $ 0.27     $ 0.31     $ 0.36  

            

    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in millions)
           
      Twelve Months Ended
    December 31,
       2024     2023 
      Unaudited
    Reconciliation to non-GAAP free cash flow:      
    Net cash provided by operating activities $ 115.2     $ 59.4  
    Purchases of property and equipment   (6.7 )     (5.1 )
    Free cash flow $ 108.5     $ 54.3  
    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in millions)
           
      Twelve Months Ended
    December 31, 2025
      Low   High
    Reconciliation to non-GAAP free cash flow:      
    Net cash provided by operating activities $ 132.0     $ 139.0  
    Purchases of property and equipment   (12.0 )     (14.0 )
    Free cash flow $ 120.0     $ 125.0  

    The MIL Network –

  • MIL-OSI: Key Tronic Corporation Announces Results For the Second Quarter of Fiscal Year 2025

    Source: GlobeNewswire (MIL-OSI)

    SPOKANE VALLEY, Wash., Feb. 04, 2025 (GLOBE NEWSWIRE) — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended December 28, 2024. These results are in line with the updated guidance provided on January 24, 2025.

    For the second quarter of fiscal year 2025, Key Tronic reported total revenue of $113.9 million, compared to $147.8 million in the same period of fiscal year 2024. The lower than anticipated revenue and earnings for the second quarter of fiscal year 2025 are primarily due to unexpected shortages for specific components managed by a large customer, lower-than-expected production during the holiday season, and reduced demand from certain customers which together lowered revenue by approximately $15 million from initial guidance for the quarter. For the first six months of fiscal year 2025, total revenue was $245.4 million, compared to $298.0 million in the same period of fiscal year 2024.

    Gross margins were 6.8% and operating margins were (1.0)% in the second quarter of fiscal year 2025, compared to 8.0% and 2.7%, respectively, in the same period of fiscal year 2024. The decline in margins for the second quarter of fiscal year 2025 primarily reflects the reduction of revenue. As previously announced, interest expense also included approximately $1.0 million in write-offs of unamortized loan fees related to refinancing the Company’s debt with a new lender.

    The net loss was $(4.9) million or $(0.46) per share for the second quarter of fiscal year 2025, compared to net income of $1.1 million or $0.10 per share for the same period of fiscal year 2024. For the first six months of fiscal year 2025, the net loss was $(3.8) million or $(0.35) per share, compared to net income of $1.4 million or $0.13 per share for the same period of fiscal year 2024.

    The adjusted net loss was $(4.1) million or $(0.38) per share for the second quarter of fiscal year 2025, compared to adjusted net income of $1.1 million or $0.10 per share for the same period of fiscal year 2024. The adjusted net loss was $(2.9) million or $(0.27) per share for first six months of fiscal year 2025, compared to adjusted net income of $1.2 million or $0.11 per share for the same period of fiscal year 2024. See “Non-GAAP Financial Measures,” below for additional information about adjusted net income and adjusted net income per share.

    “As we announced today, we’re planning to significantly increase production capacity in Arkansas and Vietnam in order to continue to benefit from the growing customer demand for rebalancing their contract manufacturing. We believe these initiatives should help mitigate the adverse impact and uncertainties surrounding the recently announced tariffs on goods manufactured in China and Mexico,” said Brett Larsen, President and CEO.

    “We are disappointed with the unexpected decline in revenue in the second quarter of fiscal 2025, however, we expect our revenue and earnings to improve in the third quarter of fiscal year 2025 as strategic initiatives undertaken in previous quarters come to fruition. We’re actively streamlining our international and domestic operations, with further headcount reductions to enhance efficiency, building on similar actions a year ago. We’re also pleased to see our inventory levels being more in line with current revenue levels and expect that these strategic changes will improve our overall profitability in the longer term.”  

    “At the same time, we continued to win new programs, such as aerospace systems and an energy resiliency technology program, which was recently announced. Once fully ramped, the latter program could generate annual revenue for us in excess of $60 million. We also closed on a long-term debt refinancing agreement during the quarter that expands available capital for growth. We believe Key Tronic remains well positioned for increased growth and profitability in coming periods.”

    The financial data presented for the second quarter of fiscal 2025 should be considered preliminary and could be subject to change, as the Company’s independent auditor has not completed their review procedures.

    Business Outlook

    Due to uncertainty in the economic and political environments related to the impact of recently announced potential tariffs, Key Tronic will not be issuing revenue or earnings guidance for the third quarter of fiscal year 2025.

    Conference Call

    Key Tronic will host a conference call to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern) today. A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 888-394-8218 or +1-313-209-4906 (Access Code: 2254355). The Company will also reference accompanying slides that can be viewed with the webcast at www.keytronic.com under “Investor Relations”. A replay will be available at www.keytronic.com under “Investor Relations”.

    About Key Tronic

    Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com 

    Forward-Looking Statements

    Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such words as aims, anticipates, believes, continues, estimates, expects, hopes, intends, plans, predicts, projects, targets, will, or would, similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to financial conditions and results, including revenue and earnings, cost savings from headcount reduction and the Mexican Peso exchange rate, demand for certain products and the effectiveness of some of its programs, business from customers and programs, and impacts from operational streamlining and efficiencies, including reductions in inventories. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the future of the global economic environment and its impact on our customers and suppliers; the success and timing of our expansion plans; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.

    Non-GAAP Financial Measures

    To supplement our consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use certain non-GAAP financial measures, adjusted net income and adjusted net income per share, diluted. We provide these non-GAAP financial measures because we believe they provide greater transparency related to our core operations and represent supplemental information used by management in its financial and operational decision making. We exclude (or include) certain items in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe this facilitates operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain income and expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. See the table below entitled “Reconciliation of GAAP to non-GAAP measures” for reconciliations of adjusted net income to the most directly comparable GAAP measure, which is GAAP net income, and the computation of adjusted net income per share, diluted.

             
    CONTACTS:   Tony Voorhees   Michael Newman
        Chief Financial Officer   Investor Relations
        Key Tronic Corporation   StreetConnect
        (509)-927-5345   (206) 729-3625
             

    KEY TRONIC CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)
    (Unaudited)

      Three Months Ended   Six Months Ended
      December 28, 2024   December 30, 2023   December 28, 2024   December 30, 2023
    Net sales $ 113,853     $ 147,847     $ 245,411     $ 297,959  
    Cost of sales   106,147       136,084       224,402       275,334  
    Gross profit   7,706       11,763       21,009       22,625  
    Research, development and engineering expenses   2,320       1,758       4,609       3,999  
    Selling, general and administrative expenses   6,507       6,057       13,077       11,841  
    Gain on insurance proceeds, net of losses   —       —       —       (431 )
    Total operating expenses   8,827       7,815       17,686       15,409  
    Operating income (loss)   (1,121 )     3,948       3,323       7,216  
    Interest expense, net   3,904       2,961       7,167       5,972  
    Income (loss) before income taxes   (5,025 )     987       (3,844 )     1,244  
    Income tax benefit   (111 )     (97 )     (54 )     (175 )
    Net income (loss) $ (4,914 )   $ 1,084     $ (3,790 )   $ 1,419  
    Net income (loss) per share — Basic $ (0.46 )   $ 0.10     $ (0.35 )   $ 0.13  
    Weighted average shares outstanding — Basic   10,762       10,762       10,762       10,762  
    Net income (loss) per share — Diluted $ (0.46 )   $ 0.10     $ (0.35 )   $ 0.13  
    Weighted average shares outstanding — Diluted   10,762       10,889       10,762       10,889  
                                   

    KEY TRONIC CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)

        December 28, 2024   June 29, 2024
    ASSETS        
    Current assets:        
    Cash and cash equivalents   $ 4,244     $ 4,752  
    Trade receivables, net of credit losses of $2,931 and $2,918     113,132       132,559  
    Contract assets     18,892       21,250  
    Inventories, net     100,709       105,099  
    Other, net of credit losses of $1,496 and $1,679     24,159       24,739  
    Total current assets     261,136       288,399  
    Property, plant and equipment, net     27,123       28,806  
    Operating lease right-of-use assets, net     13,829       15,416  
    Other assets:        
    Deferred income tax asset     19,287       17,376  
    Other     6,454       5,346  
    Total other assets     25,741       22,722  
    Total assets   $ 327,829     $ 355,343  
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Current liabilities:        
    Accounts payable   $ 63,585     $ 79,394  
    Accrued compensation and vacation     6,218       6,510  
    Current portion of long-term debt     5,063       3,123  
    Other     18,904       15,149  
    Total current liabilities     93,770       104,176  
    Long-term liabilities:        
    Long-term debt, net     106,020       116,383  
    Operating lease liabilities     8,429       10,312  
    Deferred income tax liability     9       263  
    Other long-term obligations     114       219  
    Total long-term liabilities     114,572       127,177  
    Total liabilities     208,342       231,353  
    Shareholders’ equity:        
    Common stock, no par value—shares authorized 25,000; issued and outstanding 10,762 and 10,762 shares, respectively     47,367       47,284  
    Retained earnings     73,131       76,921  
    Accumulated other comprehensive loss     (1,011 )     (215 )
    Total shareholders’ equity     119,487       123,990  
    Total liabilities and shareholders’ equity   $ 327,829     $ 355,343  
             

    KEY TRONIC CORPORATION AND SUBSIDIARIES
    Reconciliation of GAAP to non-GAAP measures
    (In thousands, except per share amounts)
    (Unaudited)

      Three Months Ended   Six Months Ended
      December 28, 2024   December 30, 2023   December 28, 2024   December 30, 2023
    GAAP net income (loss) $ (4,914 )   $ 1,084     $ (3,790 )   $ 1,419  
    Gain on insurance proceeds (net of losses)   —       —       —       (431 )
    Stock-based compensation expense   16       53       83       112  
    Write-off of unamortized loan fees   1,012       —       1,012       —  
    Income tax effect of non-GAAP adjustments (1)   (206 )     (11 )     (219 )     64  
    Adjusted net income (loss): $ (4,092 )   $ 1,126     $ (2,914 )   $ 1,164  
                   
    Adjusted net income (loss) per share — non-GAAP Diluted $ (0.38 )   $ 0.10     $ (0.27 )   $ 0.11  
    Weighted average shares outstanding — Diluted   10,762       10,889       10,762       10,889  
                   
    (1) Income tax effects are calculated using an effective tax rate of 20%, which approximates the statutory GAAP tax rate for the presented periods.        

    The MIL Network –

  • MIL-OSI: Uni-Fuels Holdings Limited Announces Underwriters’ Full Exercise of Over-allotment Option

    Source: GlobeNewswire (MIL-OSI)

    SINGAPORE, Feb. 04, 2025 (GLOBE NEWSWIRE) — Uni-Fuels Holdings Limited (NASDAQ: UFG) (“Uni-Fuels” or the “Company”), a global provider of marine fuel solutions for shipping companies headquartered in Singapore, announced today that on February 4, 2025, the underwriter of its previously announced initial public offering (the “Offering”) has exercised its over-allotment option (the “Over-Allotment Option”) in full and purchased an additional 315,000 Class A Ordinary Shares of the Company at the public offering price of $4.00 per share, resulting in additional gross proceeds of $1.26 million. After giving effect to the full exercise of the Over-Allotment Option, the total number of Class A Ordinary Shares sold by the Company in the Offering increased to 2,415,000 Class A Ordinary Shares and the gross proceeds increased to $9.66 million, before deducting underwriting discounts and commissions.

    The Class A Ordinary Shares commenced trading on Nasdaq Capital Market on January 14, 2025 under the ticker symbol “UFG.”

    Uni-Fuels intends to use the proceeds from the Offering for scaling up its reselling activities to gain market share from existing and new markets; for strengthening its workforce and expanding its market presence in new geographical locations; and as cash reserve and general corporate purposes.

    The Offering was conducted on a firm commitment basis. R. F. Lafferty & Co., Inc. acted as the sole book-running manager for the Offering.

    A registration statement on Form F-1 relating to the shares being sold in the Offering was initially filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 28, 2024; and was declared effective by the SEC on January 10, 2025. This Offering was made only by means of a prospectus. A copy of the final prospectus relating to the Offering may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov, or alternatively, from: R. F. Lafferty & Co., Inc., 40 Wall Street, 27th Floor, New York, NY 10005; (212) 293-9090.

    This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, 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 Uni-Fuels Holdings Limited

    Uni-Fuels is a fast-growing global provider of marine fuel solutions, helping shipping companies optimize fuel procurement across all markets and time zones. Founded in 2021, Uni-Fuels has evolved from modest beginnings into a dynamic, forward-thinking company. Backed by a passionate team and a growing presence across multiple locations, it has forged trusted partnerships with customers, supporting them in achieving their operational objectives with confidence, from shore to shore.

    For more information, visit www.uni-fuels.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the intended use of the proceeds. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning. Forward-looking statements represent Uni-Fuels’ current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

    Contact Information

    For Investor Relations:

    Uni-Fuels Holdings Ltd
    Email: investors@uni-fuels.com

    Skyline Corporate Communications Group, LLC
    Email: info@skylineccg.com

    The MIL Network –

  • MIL-OSI: Key Tronic Corporation Plans to Expand Operations in Arkansas and Vietnam

    Source: GlobeNewswire (MIL-OSI)

    SPOKANE VALLEY, Wash., Feb. 04, 2025 (GLOBE NEWSWIRE) — Key Tronic Corporation (Nasdaq KTCC), a world class provider of manufacturing and design engineering services, today announced that it plans to significantly increase production capacity in Arkansas and Vietnam in order to continue to benefit from the growing customer demand for rebalancing their contract manufacturing. This expansion is also expected to help mitigate the adverse impact and uncertainties surrounding the recently announced tariffs on goods manufactured in China and Mexico.

    In Arkansas, the Company has signed a new lease to significantly increase the size of its current manufacturing footprint by June 2025. In Vietnam, Key Tronic has ample space in its current facility and plans to double its manufacturing capacity by September 2025 with a significant investment in capital equipment.

    “Our customers are very excited about our plans to increase our production capacity capabilities in the US and in Vietnam,” said Brett Larsen, President and CEO of Key Tronic Corporation. “These initiatives reflect the longstanding trend to nearshore production away from China, and may also help address the potential adverse impact of tariff increases. Our US-based production provides customers with outstanding flexibility, engineering support, and ease of communications, and our Vietnam-based production offers the high-quality, low-cost choice that was associated with China in the past. In the coming months, we’ll have more to say about these expansions.”

    About Key Tronic

    Key Tronic is a leading design engineering and contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. Key Tronic provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com.

    Forward-Looking Statements

    Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Key Tronic’s opportunities and its partnership, the potential success of Key Tronic and the customer, and related revenues. Forward-looking statements include all passages containing verbs such as aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets or nouns corresponding to such verbs.  Forward-looking statements also include other passages that are primarily relevant to expected future events or revenue or that can only be fully evaluated by events that will occur in the future.  There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the success and timing of our expansion plans; the success and timing of ramping; availability and timing and receipt of critical parts or components; demand from customers and sales channels; the future of the global economic environment and its impact on our customers and suppliers; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.

             
    CONTACTS:   Anthony G. Voorhees   Michael Newman
        Chief Financial Officer   Investor Relations
        Key Tronic Corporation   StreetConnect
        (509) 927-5345   (206) 729-3625
             

    The MIL Network –

  • MIL-OSI Submissions: Asia-Pacific region to chart bold path for migration governance

    Source: United Nations – ESCAP

    The second Regional Review of the Global Compact for Safe, Orderly and Regular Migration (GCM) in Asia and the Pacific opened today with a call for migration policies that prioritize the needs and rights of migrants while ensuring broad collaboration across governments, communities and key stakeholders.  

    The region, home to over 40 per cent of the world’s international migrants, is witnessing significant shifts driven by demographic changes, rapid digital transformation and the increasing effects of climate change and other crises. Intraregional migration remains predominant, with 70 per cent of migrants moving within the region.

    Much of international migration is propelled by the search for decent work, with women migrants playing a critical yet often undervalued role in sectors such as care and domestic work. Children also make up a significant proportion of migrants in the region, with unique needs for services and protection due to their heightened vulnerability.  

    “Migration, if managed in a well-informed, planned and voluntary manner, with full respect and protection of human rights, can bring benefits to all. Migrants should have their potential fully harnessed to play key roles in enhancing sustainable development in countries of origin and destination,” said Armida Salsiah Alisjahbana, United Nations Under-Secretary-General and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP) in her opening remarks.

    “With over 40 per cent of the world’s migrants calling Asia and the Pacific home, the region has a unique opportunity to lead by example—expanding regular pathways, protecting lives and ensuring migration benefits all,” said Catalina Devandas, representing IOM Director General Amy Pope in her capacity as Coordinator of the UN Network on Migration.
     
    Expected outcomes and commitments

    Over the next three days, participants will share progress, challenges and good practices in implementing the 23 objectives of the GCM. Discussions will focus on the critical role of migrants in the region’s resilience and sustainable development, particularly in light of lessons learned during the COVID-19 pandemic.

    “In host countries, migrants bring with them not only the needed manpower, but also skills, expertise and social interactions, that can help accelerate economic and social development. Meanwhile, home countries can enjoy the economic boost from remittances from migrant workers and diaspora,” shared Eksiri Pintaruchi, Permanent Secretary for Foreign Affairs of Thailand.

    Speaking on behalf of the Stakeholder Action Group, migrant domestic worker and member of the International Domestic Workers Federation Nasrikah highlighted the importance of having segregated data on migration to inform policymakers on the key needs and situations of migrants and their families and take action based on analysis and true stories of unsafe migration.

    Recognizing the importance of addressing the interconnected challenges shaping migration dynamics such as rapid digital transformation, climate change, demographic shifts and economic disparities, several key commitments are expected to emerge from the review including:

    Protecting migrants’ rights and saving lives: Governments are expected to renew their commitments to policies that uphold migrants’ rights, promote gender equality, tackle discrimination and ensure access to health care, education, decent work and social protection for all migrants, including their children.
    Using technology to improve migration systems: Key priorities include reducing remittance transfer costs, promoting digital and financial inclusion, closing gender gaps in financial access, simplifying migration processes and increasing transparency
    Preparing for crises and climate impacts: Governments are expected to recognize the need for migration policies that help migrants and communities better withstand climate change, economic shocks and health emergencies, using reliable, timely and disaggregated data.
    Strengthening regional cooperation: The meeting will highlight cross-border collaboration, stronger partnerships and meaningful engagement with migrants, civil society, women’s rights organizations and the private sector to improve migration governance.

    The outcomes of this meeting will contribute to global discussions at the 2026 International Migration Review Forum. Governments are also expected to reaffirm their commitment to aligning migration governance with the Sustainable Development Goals, recognizing that protecting all migrants and enabling their full contributions to society are essential to achieving the 2030 Agenda for Sustainable Development.

    Note to Editor:
    The second Regional Review benefited from insights shared in the Asia-Pacific Migration Report 2024, developed by ESCAP and the Regional United Nations Network on Migration for Asia and the Pacific, as well as extensive stakeholder consultations held in its lead-up.
     
    For more information: https://www.unescap.org/events/2025/second-asia-pacific-regional-review-implementation-global-compact-safe-orderly-and

    MIL OSI – Submitted News –

  • MIL-OSI USA: Hoeven Statement on Confirmation of Doug Collins to Lead Veterans Affairs

    US Senate News:

    Source: United States Senator for North Dakota John Hoeven
    02.04.25
    WASHINGTON – U.S. Senator John Hoeven released the following statement after the Senate confirmed former Representative Doug Collins to serve as the Secretary of Veterans Affairs:
    “Congratulations to our newest Secretary of Veterans Affairs, Doug Collins,” said Hoeven. “His experience as an Air Force Colonel and chaplain have prepared him to lead the Department of Veterans Affairs. We appreciate his commitment to ensure that our veterans receive the recognition, benefits and high quality care they have earned. When we met, Secretary Collins also committed to help us advance upgrades for Fargo National Cemetery. He understands what it means to serve, and we look forward to working with him to ensure that our nation keeps its promises to our veterans.” 

    MIL OSI USA News –

  • MIL-OSI USA: Crapo Statement at Executive Session to Vote on HHS Nominee

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) delivered the following remarks at an executive session to vote on the nomination of Robert F. Kennedy Jr. to be Secretary of the U.S. Department of Health and Human Services (HHS).

    As prepared for delivery:

    “We meet today to vote on the nomination of Robert F. Kennedy Jr. to be Secretary of the U.S. Department of Health and Human Services (HHS).

    “Mr. Kennedy, if confirmed, will have the opportunity to deliver much needed change to our nation’s health care system.

    “He has spent his career fighting to end America’s chronic illness epidemic and has been a leading advocate for health care transparency, both for patients and for taxpayers.

    “Mr. Kennedy has also clearly responded to our questions during the rigorous due diligence process, his hearing, and in the course of answering over nine hundred questions for the record that were asked by Members of this Committee.

    “In response to Members of this Committee, Mr. Kennedy has even amended his ethics agreement, going beyond what is required by the Office of Government Ethics.

    “Mr. Kennedy has proven his commitment to the role of Secretary of HHS, and I will vote in favor of his nomination. 

    “I strongly encourage my colleagues on both sides of the aisle to do the same.

    “With that, I recognize Ranking Member Wyden for his remarks.”

    MIL OSI USA News –

  • MIL-OSI USA: Crapo: Doug Collins Knows Firsthand the Issues Veterans Face

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–U.S. Senator Mike Crapo (R-Idaho) issued the following statement after the Senate confirmed, by a vote of 77-23, Doug Collins to be Secretary of the U.S. Department of Veterans Affairs (VA):

    “Idaho is home to veterans of many different backgrounds, from every branch of service and from various wars over the past few decades, including post-9/11 veterans.  It is imperative the next Secretary of the VA will fight tirelessly to appropriately honor their service and administer the benefits owed to them by their sacrifices.  His military service coupled with his political and professional work give him the tools necessary to solve complex problems, cut through red tape and get things done for those who have served our country.  Doug Collins knows firsthand the issues veterans face.  He will bring empathy and kindness to meeting their needs.  He has also committed to making the VA more user-friendly so veterans do not need to find outside help to navigate the Department’s bureaucracy.  I congratulate him on his confirmation.”

    MIL OSI USA News –

  • MIL-OSI USA: Senate Confirms Doug Collins as Secretary of Veterans Affairs

    US Senate News:

    Source: United States Senator Kevin Cramer (R-ND)
    WASHINGTON, D.C. — The United States Senate confirmed Doug Collins as the next Secretary of Veterans Affairs today by a vote of 77 to 23.  
    U.S. Senator Kevin Cramer (R-ND), who served with Collins in the House of Representatives for six years, introduced him at his confirmation hearing and celebrated the bipartisan passage of his nomination from the Senate Veterans’ Affairs Committee. Additionally, Cramer penned an op-ed in the Washington Examiner highlighting how Collins will restore America’s promise to veterans.
    “Doug puts our veterans first and fights for their access to timely and quality local healthcare,” said Cramer. “His commitment to the law and servant leadership is exactly what the Department of Veterans Affairs needs to stay on mission. I look forward to working with Doug in his new position.”

    MIL OSI USA News –

  • MIL-OSI USA: Capito Votes to Confirm Collins for VA 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 former Congressman Doug Collins (R-Ga.) to serve as Secretary of the U.S. Department of Veterans Affairs (VA). Collins was confirmed by a vote of 77 to 23.

    “Supporting and ensuring timely medical care for our veterans is one of the most important promises our government makes to those who serve,” Senator Capito said. “Congressman Doug Collins’ passion and deep understanding of the issues facing veterans comes from his experience as a veteran himself. His background as a military chaplain, former congressman, and attorney uniquely qualify him to serve in this role and will be critical in delivering results and reforms in the department. I look forward to working with him and the Trump administration as we continue to improve the VA system and advance other efforts to ensure veterans in West Virginia and across the country receive the care and support they deserve.”

    Senator Capito previously met with Collins in December of 2024 to discuss his nomination and learn more about his vision to lead the department.

    MIL OSI USA News –

  • MIL-OSI USA: Cotton Reintroduces Legislation to Eliminate Federal Use of the Term “West Bank”

    US Senate News:

    Source: United States Senator for Arkansas Tom Cotton

    FOR IMMEDIATE RELEASE
    Contact: Caroline Tabler or Patrick McCann (202) 224-2353
    February 4, 2025

    Cotton Reintroduces Legislation to Eliminate Federal Use of the Term “West Bank”

    Washington, D.C. — Senator Tom Cotton (R-Arkansas) today introduced the Retiring the Egregious Confusion Over the Genuine Name of Israel’s Zone of Influence by Necessitating Government-use of Judea and Samaria (RECOGNIZING Judea and Samaria) Act, legislation to require all official U.S. documents and materials to use the historically accurate term “Judea and Samaria” instead of the “West Bank”. This bill would require the use of historically accurate terminology and align U.S. policy language with the geographical and cultural significance of the region. This legislation was introduced in the House by Congresswoman Claudia Tenney (R-New York).

    “The Jewish people’s legal and historic rights to Judea and Samaria goes back thousands of years. The U.S. should stop using the politically charged term West Bank to refer to the biblical heartland of Israel,” said Senator Cotton. 

    “The Israeli people have an undeniable and indisputable historical and legal claim over Judea and Samaria,” said Congresswoman Tenney. “By introducing the RECOGNIZING Judea and Samaria Act and creating the Friends of Judea and Samaria Caucus, we are working to reaffirm Israel’s rightful claim to its territory. I am dedicated to working with President Trump, Secretary of State Rubio, and Ambassador Huckabee to support communities in the region while opposing the establishment of a hostile state that promotes terrorism in Judea and Samaria. I remain committed to defending the integrity of the Jewish state and fully supporting Israel’s sovereignty over Judea and Samaria.

    Text of the legislation may be found here. 

    Background:

    • In 1995, the Clinton administration changed longstanding U.S. policy and required “Made in West Bank” country-of-origin (COO) labels for Israeli goods produced in Judea and Samaria, even though the U.S. government treats these products as “articles of Israel” for trade purposes. 
    • In 2016, the Obama administration republished these labeling guidelines as part of a broader effort to oppose the Israeli government. 
    • The bill pushes back on attempts to undermine Israel’s sovereign territory. 

    MIL OSI USA News –

  • MIL-OSI United Nations: Strengthening alliances and building movements to end female genital mutilation

    Source: United Nations Population Fund

    Joint statement by UNFPA Executive Director Dr. Natalia Kanem, UNICEF Executive Director Catherine Russell and WHO Director-General Dr. Tedros Adhanom Ghebreyesus on the occasion of the International Day of Zero Tolerance for Female Genital Mutilation

    NEW YORK/GENEVA, 6 February 2025 – Female genital mutilation is a violation of human rights that inflicts deep and lifelong physical, emotional, and psychological scars on girls and women. This harmful practice affects more than 230 million girls and women today. An estimated 27 million more girls could endure this violation of their rights and dignity by 2030 if we do not take action now.

    Today, on the International Day of Zero Tolerance for Female Genital Mutilation, and in response to the theme “Stepping up the pace: Strengthening alliances and building movements to end female genital mutilation”, UNFPA, UNICEF and WHO reaffirm our commitment to work together with countries and communities to end this harmful practice — once and for all.

    There is hope. Many countries have seen a decline in the prevalence of female genital mutilation. We are witnessing progress in countries like Kenya and Uganda, where collaborative action and community-led initiatives are proving that by strengthening alliances and building movements, we can accelerate change. 

    Since the launch of the UNFPA-UNICEF Joint Programme on the Elimination of Female Genital Mutilation in 2008, and in collaboration with WHO, close to 7 million girls and women access prevention and protection services. Additionally, 48 million people have made public declarations to abandon the practice, and 220 million individuals were reached by mass media messaging on the issue. In the last two years, close to 12,000 grassroots organizations and 112,000 community and frontline workers galvanized to effect change at this critical juncture.

    Yet the fragility of progress made has also become starkly evident. In the Gambia, for example, attempts to repeal the ban on female genital mutilation persist, even after an initial proposal to do so was rejected by its parliament last year. Such efforts could gravely undermine the rights, health, and dignity of future generations of girls and women, jeopardizing the tireless work over decades to change attitudes and mobilize communities.

    Of the 31 countries in which data on prevalence are collected nationally, only seven countries are on track to meet the Sustainable Development Goal of ending female genital mutilation by or before 2030. The current rate of progress must accelerate urgently to meet this target.

    This requires strengthened alliances among leaders, grassroots organizations, and across sectors spanning health, education, and social protection — as well as sustained advocacy and expanded social movements with girls and survivors at the centre. 

    It demands greater accountability at all levels to ensure commitments to human rights are upheld and policies and strategies are implemented to protect girls at risk and provide care, including justice, for survivors. It also requires increased investment in scaling up proven interventions. We are indebted to generous donors and partners who are supporting this life-changing work and call on others to join them.

    We all have a role to play to ensure that every girl is protected and can live free from harm. Let’s step up the pace and act with urgency. The time to end female genital mutilation is now. 

    ###

    Notes to Editors

    About the UNFPA–UNICEF Joint Programme
    The UNFPA–UNICEF Joint Programme on the Elimination of Female Genital Mutilation: Delivering the Global Promise works to eliminate female genital mutilation through interventions in 17 countries where the practice is prevalent. The programme creates opportunities for girls and women to realize their rights in health, education, income and equality to help end the power imbalances that underpin this harmful practice.

    For further information, please contact:
    Eddie Wright, UNFPA New York, Tel: +1 917 831 2974 ewright@unfpa.org
    Sara Alhattab | UNICEF New York | +1 917-957-6536 | salhattab@unicef.org
    Laura Keenan | WHO, Geneva | keenanl@who.int and mediainquiries@who.int

    About UNFPA
    UNFPA is the United Nations sexual and reproductive health agency. UNFPA’s mission is to deliver a world where every pregnancy is wanted, every childbirth is safe and every young person’s potential is fulfilled. UNFPA calls for the realization of reproductive rights for all and supports access to a wide range of sexual and reproductive health services, including voluntary family planning, quality maternal health care and comprehensive sexuality education.

    For more information about UNFPA and its work visit: www.unfpa.org
    Follow UNFPA on X (Twitter), Facebook, Instagram and YouTube

    About UNICEF
    UNICEF, the United Nations agency for children, works to protect the rights of every child, everywhere, especially the most disadvantaged children and in the toughest places to reach. Across more than 190 countries and territories, we do whatever it takes to help children survive, thrive, and fulfil their potential.

    For more information about UNICEF and its work visit:
    Follow UNICEF on X (Twitter), Facebook, Instagram and YouTube

    About WHO

    Dedicated to the well-being of all people and guided by science, the World Health Organization leads and champions global efforts to give everyone, everywhere an equal chance at a safe and healthy life. We are the UN agency for health that connects nations, partners and people on the front lines in 150+ locations – leading the world’s response to health emergencies, preventing disease, addressing the root causes of health issues and expanding access to medicines and health care. Our mission is to promote health, keep the world safe and serve the vulnerable. 

    For more information about WHO and its work visit: www.who.int   

    Follow WHO on X (Twitter), Facebook, Instagram and YouTube

    MIL OSI United Nations News –

  • MIL-OSI Canada: Remarks by Tiff Macklem, Governor of the Bank of Canada

    Source: Bank of Canada

    OTTAWA – On Thursday, February 6, 2025, Tiff Macklem, Governor of the Bank of Canada, will speak to the BIS Chapultepec Conference.

    Topic

    Future challenges for monetary policy in the Americas

    Time

    17:00 (Eastern Time)

    Place

    The speech will be delivered by videoconference.

    Lock-Up

    There will be no media lock-up for this event.

    Distribution

    The Governor’s remarks will be published on the Bank’s website at 17:00 (Eastern Time).

    Media Availability

    There will be no media availability for this event.

    Audience Q&A

    There will be no audience Q&A period.

    Webcast

    A webcast of the event will be available on the BIS Website

    Note

    For more information, please contact Media Relations.

    MIL OSI Canada News –

  • MIL-OSI Canada: Budget 2025: Coming soon

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

  • MIL-OSI USA: Wyden, Merkley, Crapo, and Risch Push to Reauthorize Program Supporting Rural Counties in Oregon, Idaho and Nationwide

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)

    February 04, 2025

    Washington, D.C.— U.S. Senators Ron Wyden and Jeff Merkley (both D-Ore.) said today that they along with U.S. Senators Mike Crapo and Jim Risch (both R-Idaho) and 17 other Senate colleagues have reintroduced bipartisan legislation that would reauthorize the Secure Rural Schools and Self-Determination Program (SRS) administered for counties hosting both U.S. Forest Service and Bureau of Land Management forested lands through Fiscal Year 2026. 

    “This is urgent business for the Oregonians living and working in counties that have long depended on millions of dollars from these federal funds for local schools, roads, law enforcement and more,” said Wyden, who co-authored the bipartisan SRS legislation in 2000.  “I’m glad this bill is being reintroduced right at the start of this new Congress in this bipartisan spirit, and I strongly urge our House colleagues to act with the same urgency and bipartisan ethic to reconnect this proven lifeline ASAP for rural communities in Oregon and nationwide.”

    “Our bipartisan bill provides reliable funding that is crucial to keeping schools and libraries open, maintaining roads, restoring watersheds, and ensuring there are police officers and firefighters to keep rural?communities safe,”?said Merkley.  “Congress must swiftly pass this bill to extend the SRS program so Oregon communities can maintain access to these important lifelines and resources.” 

    “The SRS program is a vital lifeline for rural counties where federal lands generate insufficient revenue for important local services,” said Crapo.  “Failure to reauthorize the program puts most of Idaho’s counties in a precarious position with a lack of funding for schools, road maintenance, public safety, and search and rescue operations.  I urge both the Senate and House to take up this measure expeditiously, and remain committed to finding a viable long-term solution that provides more certainty to rural county governments in the future.”

    “Idaho’s counties rely on SRS funding for schools and road maintenance,” said Risch. “The federal government made a promise to rural communities, and until we can bring historic timber revenue back to these areas, Congress has an obligation to fulfill that promise. Congress must immediately reauthorize SRS.”

    “Reauthorizing Secure Rural Schools for three years will help counties with large tracts of federal forests meet the needs of residents and visitors,” said National Association of Counties Executive Director Matthew Chase.  “Without SRS, counties would face, on average, an 80 percent drop in resources for infrastructure improvement, education programs and forest health projects.  Many rural counties and school districts are already making difficult decisions due to a lack of funds. Counties applaud the leadership of Senators Crapo and Wyden and look forward to prompt passage of this vital legislation.”

    Additional co-sponsors of the bill include Senators Dan Sullivan (R-Alaska), Jacky Rosen (D-Nevada), Shelley Moore Capito (R-West Virginia), Jeanne Shaheen (D-New Hampshire), Steve Daines (R-Montana), Mark Kelly (D-Arizona), Josh Hawley (R-Missouri), Maggie Hassan (D-New Hampshire), John Curtis (R-Utah), Patty Murray (D-Washington), Rick Scott (R-Florida), Amy Klobuchar (D-Minnesota), Tim Sheehy (R-Montana), Michael Bennet (D-Colorado), Lisa Murkowski (R-Alaska), Jim Justice (R-West Virginia) and Catherine Cortez Masto (D-Nevada).

    Wyden, Merkley, Crapo, and Risch introduced the legislation in the 118th Congress and the Senate unanimously passed it in November 2024.  It did not receive a vote in the U.S. House of Representatives before the end of the Congress.  The program needs to be reauthorized as soon as possible to avoid a gap in funding for rural counties that rely on the program for much-needed services.

    Congress enacted SRS in 2000 to financially assist counties with public, tax-exempt forestlands.  The U.S. Forest Service and the U.S. Bureau of Land Management administer the funds.  The totals are based on a formula including economic activity, timber harvest levels and other considerations that vary from county to county.  SRS payments are critical to maintain education programs for many rural counties that contain federal lands exempt from property taxes.

    Text of the bill is here.

    MIL OSI USA News –

  • MIL-OSI USA: Tuberville, Hoeven Introduce CRA to Repeal Methane Tax Rule

    US Senate News:

    Source: United States Senator Tommy Tuberville (Alabama)

    WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) joined U.S. Senator John Hoeven (R-ND) in introducing a resolution under the Congressional Review Act (CRA) to repeal a rule proposed by the Environmental Protection Agency (EPA) included in Democrats’ Inflation Reduction Act that creates a new tax on natural gas production. The tax would increase our dependence on foreign nations for energy and cause higher energy costs for consumers. Last month, Senator Tuberville also joined U.S. Senator Ted Cruz in reintroducing legislation to repeal the Natural Gas Tax.

    “For the last four years, Americans have felt the impacts of Bidenflation from the gas pump to the grocery store,” said Senator Tuberville. “Democrats have shut down our offshore drilling and made us reliant on foreign adversaries for our energy without considering the impact that it has on Americans’ daily lives. The last thing hardworking Americans need right now are more taxes and higher prices. I look forward to seeing this disastrous methane tax overturned and working with President Trump to make America energy independent once again.

    Full text of the resolution can be read here.

    Also joining Senators Tuberville and Hoeven in introducing the resolution are U.S. Senators Roger Marshall (R-KS), Mike Lee (R-UT), James Lankford (R-OK), Steve Daines (R-MT), Kevin Cramer (R-ND), Katie Britt (R-AL), Shelley Moore Capito (R-WV), Cynthia Lummis (R-WY), James Risch (R-ID), Rick Scott (R-FL), Ted Cruz (R-TX), Rand Paul (R-KY), Mike Crapo (R-ID), Jim Justice (R-WV), John Kennedy (R-LA), Cindy Hyde-Smith (R-MS), Mike Rounds (R-SD), Tim Sheehy (R-MT), Thom Tillis (R-NC), Markwayne Mullin (R-OK), Roger Wicker (R-MS), Pete Ricketts (R-NE) and John Barrasso (R-WY).

    BACKGROUND:

    For the last four years, Senator Tuberville has helped introduce numerous pieces of legislation pushing back against the Biden administration’s war on American energy, citing the impacts rising energy costs would have on hardworking Americans and Alabamians that work in the Gulf of America’s energy industry. Senator Tuberville has also been vocal about how increased energy costs cut into farmers’ bottom lines and the need to bring down energy costs so that we can preserve our small family farms.  

    MORE:

    Tuberville, Cruz Introduce Legislation Eliminating Natural Gas Tax, Bolstering American Energy Security 

    Tuberville, Cruz Introduce Legislation to Repeal Biden’s Natural Gas Tax for Unleashing American Energy

    ICYMI: Tuberville in Fox News: How Congress Can Reverse Biden’s Radical Energy Agenda

    Tuberville Blasts Biden Administration For Playing Politics With U.S. Energy

    Tuberville Applauds NOAA Decision Rejecting Biden Administration’s Rule Threatening Gulf’s Energy Sector

    Tuberville Continues to Fight Biden Administration’s Rule Threatening Gulf’s Energy Sector

    Tuberville Sponsors Legislation to Prevent Administration From Shutting Down Offshore Energy Development

    ICYMI: Tuberville and NOIA President Sound Alarm on Biden Rule Proposal Threatening Gulf’s Energy Sector

    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI USA: February 4th, 2025 Heinrich Announces Appropriations Committee Assignments for 119th Congress

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    Heinrich named Ranking Member of the Senate Appropriations Subcommittee on the Legislative Branch

    WASHINGTON — Today, U.S. Senator Martin Heinrich (D-N.M.) announced his assignments on the Senate Appropriations Committee for the 119th Congress. Heinrich’s positions on the Appropriations Committee allow him to directly advocate for and deliver investments that improve New Mexicans’ safety, well-being, and quality of life.

    “As a member of the Senate Appropriations Committee, I have delivered hundreds of millions of dollars in investments to New Mexico, helping to lower costs for working families, grow local economies, and create jobs New Mexicans can build their families around. Our appropriations bills are essential to New Mexico’s economy. They support our local law enforcement, fire departments, hospitals, schools, newborns, elders and veterans, and help keep communities safe across New Mexico.

    “I will stand up to anybody who tries to prevent investments I’ve secured from reaching New Mexicans. The Constitution is clear: the president cannot override, delay, or rescind Congress’s funding laws. Donald Trump’s attacks on federal funding for our state cannot stand.”

    Heinrich has been assigned to the following Senate Appropriations Subcommittees:

    • Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Subcommittee
    • Energy and Water Development Subcommittee
    • Interior, Environment, and Related Agencies Subcommittee
    • Military Construction, Veterans Affairs, and Related Agencies Subcommittee
    • Legislative Branch Subcommittee

    Heinrich will be Ranking Member of the Senate Appropriations Subcommittee on the Legislative Branch, which oversees the funding of:

    • Joint Committee on Taxation
    • Joint Economic Committee
    • Congressional Budget Office
    • Government Accountability Office
    • Architect of the Capitol
    • Books for the Blind and Physically Handicapped (Library of Congress)
    • Botanic Garden (Architect of the Capitol)
    • Capitol Police
    • Congressional Research Service (Library of Congress)
    • Copyright Office (Library of Congress)
    • Government Publishing Office
    • House of Representatives
    • John C. Stennis Center for Public Service, Training, and Development
    • Joint Congressional Committee on Inaugural Ceremonies
    • Library of Congress
    • Office of Compliance
    • Office of Congressional Accessibility Services
    • Office of the Attending Physician
    • Open World Leadership Center Trust Fund
    • Senate

    This will be Heinrich’s third Congress serving on the U.S. Senate Committee on Appropriations.

    Heinrich’s Committee assignments for the 119th Congress:

    In the 119th Congress, Heinrich is serving as Ranking Member for the Senate Energy and Natural Resources (ENR) Committee. The ENR Committee plays a critical role in setting national energy policies and managing our nation’s public lands within the U.S. Department of the Interior and the U.S. Forest Service. The Committee also oversees the U.S. Department of Energy and has jurisdiction over U.S. territories and nuclear waste policy.

    Heinrich will continue to serve on the U.S. Senate Appropriations Committee, the U.S. Senate Select Committee on Intelligence, and the U.S. Congress Joint Economic Committee.

    Heinrich will also serve as Co-Chair of the Senate Artificial Intelligence (AI) Caucus, the Senate Fusion Energy Caucus, the Bicameral Electrification Caucus, the International Conservation Caucus, and the Senate Outdoor Recreation Caucus. Heinrich will serve as a member of the Congressional Sportsmen’s Caucus, Senate Democratic Hispanic Task Force, National Service Congressional Caucus, Congressional Dietary Supplement Caucus, and the Congressional Directed Energy Caucus.

    MIL OSI USA News –

  • MIL-OSI USA: February 4th, 2025 Heinrich, Daines Resolution Designating National Tribal Colleges and Universities Week Passes U.S. Senate

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    WASHINGTON – U.S. Senators Martin Heinrich (D-N.M.) and Steve Daines (R-Mont.) announced that their bipartisan legislation designating this week, beginning February 3, 2025, as “National Tribal Colleges and Universities Week” passed the U.S. Senate. This week is dedicated to the recognition and support for the achievements of students pursuing postsecondary educational opportunities in Tribal Colleges and Universities.

    “I’m pleased the Senate passed my resolution designating this week as National Tribal Colleges and Universities Week. This resolution recognizes the vital role of Tribal colleges and universities in creating opportunities for the next generation of Tribal leaders, upholding Tribal educational sovereignty, and preparing Native students for careers they can build their families around in their home communities,” said Heinrich.

    “Our tribal colleges and universities play a vital role in Montana’s communities and provide incredible opportunities for higher education on or near Montana’s reservations,” said Daines. “I’m proud to introduce legislation so the hard work and great achievements of our Montana students, teachers and educational institutions can be recognized nationally.”

    Read the full text of the resolution here.

    The resolution was led by Heinrich and Daines. U.S. Senators John Barrasso (R-Wyo.), Michael Bennett (D-Colo.), Kevin Cramer (R-N.D.), Dick Durbin (D-Ill.), Deb Fischer (Neb.), Ruben Gallego (D-Ariz.), Mazie Hirono (D-Hawaii), John Hoeven (R-N.D.), Ron Johnson (R-Wis.), Mark Kelly (D-Ariz.), Amy Klobuchar (D-Minn.), James Lankford (R-Okla.), Jerry Moran (R-Kan.), Mike Rounds (R-S.D.), Jacky Rosen (D-Nev.), Bernie Sanders (D-Vt.), Brian Schatz (D-Hawaii), Tim Sheehy (R-Mont.), Elizabeth Warren (D-Mass.) and Tammy Baldwin (D-Wisc.) cosponsored the  resolution.

    MIL OSI USA News –

  • MIL-OSI USA: SCHUMER CALLS ON DHS SECRETARY TO IMMEDIATELY REINSTATE PAN AM FLIGHT 103-INSPIRED AVIATION SECURITY COMMITTEE; SENATOR SAYS PANEL IS CRITICAL TO AIRLINE SAFETY AND PRESERVING MEMORY OF 35 SYRACUSE…

    US Senate News:

    Source: United States Senator for New York Charles E Schumer

    Last Month, The Trump Administration Quietly Removed All Members Of The Nonpartisan ‘Aviation Security Advisory Committee,’ Created Following 1988 Bombing of Pan Am Flight 103 That Tragically Killed 35 Syracuse University Students And Others From Across Upstate NY & America

    Schumer Says Just-Confirmed DHS Secretary Noem Must Immediately Right This Wrong — And That This Unwise Move Clearly Usurps Congressional Intent, Possibly Violating The Law, And Guts Panel That Has Helped Create Hundreds Of Changes To Improve Airplane Safety

    Schumer: DHS Must Bring Back Pan Am Flight 103-Inspired Safety Committee To Continue To Guard and Improve The Safety Of Our Skies

    After the U.S. Department of Homeland Security gutted the Aviation Security Advisory Committee, which was created following the deadly terror attack on Pan American Flight 103 that took the lives of 35 Syracuse University students and many others, U.S. Senator Chuck Schumer today called on DHS to immediately reinstate this vital safety panel so they can continue their vital work in airline safety.

    Schumer said, “This unwise, unjustified and dangerous move risks the safety of our skies by taking away a key tool to strengthen aviation security, and it possibly violated the law. Beyond that, it is deeply insulting to the memory of those lost that day, including the 35 precious students from Syracuse University.” The senator is now demanding the Trump administration reverse course and bring back the committee to continue its vital air travel safety work.

    “Dismantling the aviation security committee inspired by Pan Am Flight 103, and the awful loss of the 35 Syracuse University students and other Americans murdered that day, is callous and risks airline safety. For decades, nonpartisan members of the Committee, including family members of the victims of Pan Am Flight 103, have made life-saving recommendations to the federal government to enhance aviation security. Now all that work will cease. It makes absolutely no sense. The Department of Homeland Security needs to immediately right this wrong,” said Senator Schumer. “These members turned their grief into action, to ensure that what happened to their loved ones never happen again. Calling this Committee a ‘misuse of resources’ is insulting to the lives lost by an act of terror nearly 40 years ago and to the Committee’s decades of work. Effectively shutting down operations by removing all members clearly attempts to skirt the mandated congressional intent and possibly violates the law. The Trump administration must reverse course and bring back this committee now.”

    “This action by the Trump Administration will undermine aviation security in the United States and across the globe. We are grateful to Senator Schumer for pushing to reverse this action so that the vital work of ASAC can continue,”  said Kara Weipz, President of Victims of Pan Am Flight 103. Weipz’s brother, Rick Monetti, was a Syracuse University student.

    “Those of us whose loved ones were killed in the Pan Am 103 bombing  cannot imagine a greater tribute to their memories than protecting the threat to our national security posed by those who wish to attack the United States using our aviation system,” said Stephanie Bernstein, a member of the Committee until it was disbanded. Bernstein’s husband was killed in the bombing.

    In 1988, a mid-air explosion killed 259 passengers on Pan American Flight 103, including 35 Syracuse University students and others from across New York and America. The nonpartisan Aviation Security Advisory Committee comprised of 34 volunteer members, including family members of the victims, was created following this attack. Schumer explained that the Committee provided advice to federal government on measures to increase aviation safety since 1989 and Congress made the Committee permanent in 2014. 95 percent of the Committee’s recommendations have been adopted, and the Committee’s research on bomb-detection scanners and recommendations helped federal authorities tighten security following 9/11.

    Last month, however, the U.S. Department of Homeland Security delivered termination notices to the Aviation Security Advisory Committee, removing all of its members.

    In a letter to U.S. Department of Homeland Security Secretary Kristi Noem, Schumer said this change was not only wrong but risked the safety of our skies and potentially violated the law by clearly attempting to evade congressional intent. Schumer demanded the Committee and its members, especially family members of the victims of Pan Am Flight 103 who were callously removed, be re-instated immediately.

    Schumer’s letter to Secretary Noem can be found below:

    Dear Secretary Noem:

    I write to you today regarding a critical issue that directly impacts aviation security throughout our country and across the globe, which is the elimination of all Department of Homeland Security (DHS) advisory committees, including the Aviation Security Advisory Committee (ASAC). The elimination of ASAC could have perilous effects to the safety of the flying public and the security of our skies, and I have serious concerns for the manner in which DHS has terminated the members of this committee.

    As you may know, ASAC was created following the deadly terrorist attack on Pan Am Flight 103 in December 1988, which killed 259 onboard, including 35 Syracuse University students. The Aviation Security Stakeholder Participation Act of 2014 made ASAC permanent. However, in a memo dated January 20, 2025, members of ASAC, including family members of victims of Pan Am Flight 103, were informed by DHS that all current memberships on its advisory committees were being immediately terminated, as the agency prioritizes national security and eliminates a ‘misuse of resources’.

    The assertion that ASAC is a ‘misuse of resources’ by the Agency is insulting to the lives lost by an act of terror nearly 40 years ago, and to the work done by ASAC to create security and safety reforms across the board that have created a safer flying public since that tragic day. Since the creation of ASAC, approximately 95% of its recommendations to the Transportation Security Administration (TSA) and Federal Aviation Administration (FAA) have been adopted, including when the committee had studied and recommended the use of bomb-detection scanners amongst federal security agencies which was implemented quickly in the wake of the September 11, 2001 attacks.

    It is no question that since ASAC’s inception, which was directly in response to the Pan Am 103 crash, our skies have gotten safer and more secure. Effectively shutting down ASAC by removing all of its members clearly avoids congressional intent of mandating this permanent committee. The safety of our skies needs to be a top priority for DHS, especially in the wake of recent instances of security breaches in our airports and our ever-evolving threat environment. Therefore, I urge you to immediately reinstate ASAC and the members that were dismissed.

    MIL OSI USA News –

  • MIL-OSI United Nations: Call for Applications: Independent Scientific Panel on Effects of Nuclear War

    Source: United Nations General Assembly and Security Council

    NEW YORK, 4 February 2025 (Office for Disarmament Affairs) — The United Nations Office for Disarmament Affairs is issuing a public call for candidates to serve on an independent Scientific Panel on the Effects of Nuclear War. 

    The Panel, created by General Assembly resolution A/RES/79/238, will examine the physical effects and societal consequences of a nuclear war on a local, regional and planetary scale.  Potential Panel members are expected to have the necessary expertise to assess the climatic, environmental, radiological and other relevant effects of nuclear war, and its impact on public health, global socioeconomic systems, agriculture and ecosystems.  The Panel has been tasked with publishing a comprehensive report by 2027, making key conclusions and identifying areas for future research.

    Nuclear weapons are the most devastating weapons ever invented and the only weapons with potentially existential consequences.  Just one nuclear weapon can destroy a whole city, potentially killing millions, and jeopardizing the natural environment and lives of future generations through its long-term catastrophic effects.  Despite decades of nuclear disarmament, non-proliferation and arms control efforts, there remain approximately 12,500 such weapons in the world today.

    It has been almost four decades since the last United Nations study on the effects of nuclear war.  Since then, climactic and scientific modeling tools have significantly progressed, and with them, the potential to better understand the effects of a nuclear war, and to provide an updated, comprehensive scientific assessment of the effects and consequences of such a war.

    The Office for Disarmament Affairs is seeking individuals with expertise in one of the following seven key areas:  nuclear and radiation studies; atmospheric sciences and climate; earth and life sciences; environment and environmental studies; agriculture, biology and life sciences; public health and medicine; and behavioural and social sciences and applied economics.

    A link for experts to self-nominate, along with criteria for consideration, can be found at https://disarmament.unoda.org/panel-on-the-effects-of-nuclear-war/.  Applications will be accepted until 1 March.

    MIL OSI United Nations News –

  • MIL-OSI New Zealand: New Zealand Harkness Fellowship applications now open

    Source: Leadership Development Centre

    The New Zealand Harkness Fellowship is for a high potential senior leader in any field of study or vocation (excluding health care policy and practice) to study or research in the US for between 3-6 months.

    A New Zealand Harkness Fellowship, worth up to NZ$70,000, is being offered in 2025 (for travel in mid-late 2025) to a leader currently employed in the New Zealand Public Sector.  The length and total value of the Fellowship will be determined by the LDC and Harkness Trust Board, in conjunction with the successful applicant.

    Applications are now open and will close 5pm, 31 March 2025.   

    More information is available on our website .

    New Zealand Harkness Fellowships

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Fatal crash, Twin Lakes Road, Upper Hutt

    Source: New Zealand Police (National News)

    Police can confirm one person has died following a crash on Twin Lakes Road, Upper Hutt this morning.

    The single vehicle crash was reported at about 7am.

    The sole occupant of the vehicle died at the scene.

    Inquiries into the circumstances of the crash are ongoing.

    ENDS

    Issued by Police Media Centre

    MIL OSI New Zealand News –