Category: Asia Pacific

  • MIL-OSI Australia: Legislation to establish National Code to prevent and respond to sexual violence in Higher Education

    Source: Australian Executive Government Ministers

    The Albanese Labor Government has today introduced legislation to establish a mandatory National Higher Education Code to Prevent and Respond to Gender-based Violence.

    Not enough has been done to address sexual assault and sexual harassment in our universities, and for too long, students haven’t been heard.

    The 2021 National Student Safety Survey shows one in 20 students have been sexually assaulted since they started university and one in six have been sexually harassed. One in two have felt like they weren’t heard when they made a complaint.

    That’s why the Albanese Labor Government is taking action.

    We have established the National Student Ombudsman which has started its work to hear from students, investigate complaints and resolve disputes with universities.

    Now we take the next step, by establishing this National Code to strengthen the work of the Ombudsman.

    For the first time, the National Code will set standards and requirements that all higher education providers must meet to make students and staff safer, including in student accommodation.

    The National Code will introduce accountability at the highest level, drive cultural change, and make sure staff are adequately trained to support victim-survivors.

    Under the National Code, universities must comply with the recommendations of the Student Ombudsman.

    Universities’ compliance with the obligations in the Code will be monitored and enforced through a range of compliance powers, with serious penalties for non-compliance.

    The National Code has been developed in consultation with victim-survivor advocates, students, the higher education sector, gender-based violence experts, states and territories and relevant Australian Government agencies.

    Addressing sexual assault and sexual harassment in universities was one of five priority actions from the Australian Universities Accord Interim Report.

    The National Code and Student Ombudsman are key measures of the Action Plan Addressing Gender-based Violence in Higher Education, agreed by Education Ministers in February 2024.

    The Action Plan will contribute to the work to end gender-based violence in one generation as outlined in the National Plan to End Violence against Women and Children 2022–2032.

    Quotes attributable to Minister for Education Jason Clare:

    “Not enough has been done to address sexual violence in our universities and for too long students haven’t been heard.

    “Universities aren’t just places where people work and study, they are also places where people live, and we need to ensure they are safe.

    “That’s why the Albanese Labor Government has listened to students and survivors and are taking action.

    “We’ve established a National Student Ombudsman so when the worst does happen, students have somewhere to go if they don’t feel heard. That’s the first step.

    “We also need to take steps to stop sexual violence from happening in the first place.

    “And when the worst does happen, staff and students should get the response and support they deserve, every time.

    “The new National Code will give the Student Ombudsman real teeth to hold providers to account and drive long overdue cultural change in universities.”

    Quotes attributable to Minister for Social Services, Amanda Rishworth:

    “Gender-based violence is unacceptable in any form and we must all work together to stamp it out.

    “Young people and all students on campus deserve to feel safe and I’m so pleased our Government is taking action.

    “No one should feel unsafe or not heard when they make a complaint.

    “Ending gender-based violence and sexual violence is everyone’s responsibility.”

    MIL OSI News

  • MIL-OSI: EZCORP Reports First Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, Feb. 05, 2025 (GLOBE NEWSWIRE) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its first quarter ended December 31, 2024.

    Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year.

    FIRST QUARTER HIGHLIGHTS

    • Pawn loans outstanding (PLO) up 13% to $274.8 million.
    • Net income increased 9% to $31.0 million. On an adjusted basis1, net income increased 14% to $32.6 million.
    • Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
    • Adjusted EBITDA increased 12% to $53.0 million.
    • Total revenues increased 7% to $320.2 million, while gross profit increased 7% to $185.4 million.

    CEO COMMENTARY AND OUTLOOK

    Lachie Given, Chief Executive Officer, stated, “Fiscal 2025 is off to a strong start as we build on our momentum from 2024. Customer demand for immediate cash solutions and high quality, cost-effective secondhand goods remains high, as reflected by another quarter of record revenues and PLO. We also continued to drive meaningful improvements to our bottom line and deliver on the operating leverage inherent in our business, with adjusted EBITDA increasing 12% and adjusted diluted EPS increasing 17%.

    “Our consistent performance across geographies underscores the strength of our operations and customer-focused strategy. In the U.S., PLO grew 15%, driven by strong loan demand and higher average loan size. In Latin America, PLO rose 19% on a constant currency basis, with revenues up 18%, reflecting robust customer demand for loans and secondhand goods, as well as our outstanding customer service. Our EZ+ Rewards program also continues to perform exceptionally well, which accounted for 77% of all transacting customers. These results demonstrate the momentum we are gaining across markets and the success of our strategic initiatives.”

    “We are proud of the solid foundation we have built, which will enable us to continue driving growth both organically and through strategic M&A. Looking ahead, we plan to continue delivering exceptional service to our customers and enhancing value for our shareholders. We remain deeply committed to our core values of People, Pawn and Passion, and believe we are very well-positioned to deliver another record year of performance in fiscal 2025,” concluded Given.

    CONSOLIDATED RESULTS

    Three Months Ended December 31 As Reported   Adjusted1
    in millions, except per share amounts 2024
      2023
      2024
      2023
                   
    Total revenues $ 320.2     $ 300.0     $ 329.7     $ 300.0  
    Gross profit $ 185.4     $ 172.6     $ 190.2     $ 172.6  
    Income before tax $ 41.4     $ 37.7     $ 43.4     $ 37.8  
    Net income $ 31.0     $ 28.5     $ 32.6     $ 28.6  
    Diluted earnings per share $ 0.40     $ 0.36     $ 0.42     $ 0.36  
    EBITDA (non-GAAP measure) $ 50.8     $ 47.1     $ 53.0     $ 47.2  
                                   
    • PLO increased 13% to $274.8 million, up $31.6 million. On a same-store2 basis, PLO increased 12% due to increase in average loan size, continued strong pawn demand and improved operational performance.
    • Total revenues and gross profit increased 7%, reflecting improved pawn service charge (PSC) revenues as a result of higher average PLO in addition to higher merchandise sales and merchandise sales gross profit.
    • PSC increased 10% as a result of higher average PLO.
    • Merchandise sales gross margin remains within our target range at 35%, down from 36%. Aged general merchandise was 2.1% of total general merchandise inventory. 
    • Net inventory increased 21%, due to the increase in PLO and decrease in inventory turnover to 2.7x, from 3.0x.
    • Store expenses increased 5% and 3% on a same-store basis.
    • General and administrative expenses increased 13%, primarily due to labor (including incentive compensation) and, to a lesser extent, ongoing support costs related to Workday.
    • Income before taxes was $41.4 million, up 10% from $37.7 million, and adjusted EBITDA increased 12% to $53.0 million.
    • Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
    • Cash and cash equivalents at the end of the quarter was $174.5 million, up from $170.5 million as of September 30, 2024. The increase was primarily due to cash from operating activities, partially offset by increase in earning assets, capital expenditures, taxes paid related to net share settlement of equity awards and share repurchases.

    SEGMENT RESULTS

    U.S. Pawn

    • PLO ended the quarter at $220.2 million, up 15% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.
    • Total revenues increased 7% and gross profit increased 9%, reflecting higher PSC and merchandise sales.
    • PSC increased 11% as a result of higher average PLO.
    • Merchandise sales increased 3%, and gross margin was flat at 37%. Aged general merchandise increased to 2.6%, or $1.2 million of total general merchandise inventory. Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1%.
    • Net inventory increased 17%, in line with the growth in PLO. Inventory turnover decreased to 2.5x, from 2.7x.
    • Store expenses increased 8% (5% on a same-store basis), primarily due to labor costs (including higher health benefits) supporting more store activity, offset by a decrease in expenses related to our loyalty program.
    • Segment contribution increased 11% to $52.9 million.
    • During the quarter, segment store count remained at 542.

    Latin America Pawn

    • PLO improved to $54.6 million, up 4% (19% on constant currency basis). On a same-store basis, PLO increased 2% (17% on a constant currency basis) due to improved operational performance and increased loan demand.
    • Total revenues were up 7% (18% on constant currency basis), and gross profit increased 4% (14% on a constant currency basis), mainly due to increased PSC and higher merchandise sales.
    • PSC increased to $29.2 million, up 7% (17% on a constant currency basis) as a result of higher average PLO.
    • Merchandise sales increased 7% (19% on constant currency basis) and merchandise sales gross margin decreased to 30% from 32%. Aged general merchandise decreased to 1.4% from 1.6% of total general merchandise inventory.
    • Net inventory increased 35% (57% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.1x, from 3.8x.
    • Store expenses were flat (11% increase on a constant currency basis) and on a same-store basis decreased 2% (9% increase on a constant currency basis), primarily due to labor and rent.
    • Segment contribution increased 14% to $11.6 million (24% on a constant currency basis). On an adjusted basis, segment contribution was up 22% to $12.5 million.
    • During the quarter, segment store count increased by four de novo stores to 741.

    FORM 10-Q

    EZCORP’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.

    CONFERENCE CALL
    EZCORP will host a conference call on Thursday, February 6, 2025, at 8:00 am Central Time to discuss First Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://register.vevent.com/register/BI86f9072cf4c447ae86954e0a22daa957. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call. 

    ABOUT EZCORP

    Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index. 

    Follow us on social media:

    Facebook EZPAWN Official https://www.facebook.com/EZPAWN/

    EZCORP Instagram Official https://www.instagram.com/ezcorp_official/

    EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/

    EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/

    FORWARD LOOKING STATEMENTS

    This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company’s strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

    Contact:
    Email: Investor_Relations@ezcorp.com
    Phone: (512) 314-2220

    Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions. Numbers may not foot or cross foot due to rounding.
    1“Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.

    2“Same-store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.

       
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
       
      Three Months Ended
    December 31,
    (in thousands, except per share amounts) 2024   2023
    Revenues:      
    Merchandise sales $ 186,343     $ 179,403  
    Jewelry scrapping sales   16,732       14,082  
    Pawn service charges   117,052       106,449  
    Other revenues   43       57  
    Total revenues   320,170       299,991  
    Merchandise cost of goods sold   121,824       115,210  
    Jewelry scrapping cost of goods sold   12,942       12,208  
    Gross profit   185,404       172,573  
    Operating expenses:      
    Store expenses   116,451       110,555  
    General and administrative   18,669       16,543  
    Depreciation and amortization   8,335       8,565  
    Loss (gain) on sale or disposal of assets and other   8       (172 )
    Total operating expenses   143,463       135,491  
    Operating income   41,941       37,082  
    Interest expense   3,147       3,440  
    Interest income   (2,093 )     (2,639 )
    Equity in net income of unconsolidated affiliates   (1,475 )     (1,153 )
    Other expense (income)   978       (271 )
    Income before income taxes   41,384       37,705  
    Income tax expense   10,368       9,235  
    Net income $ 31,016     $ 28,470  
           
    Basic earnings per share $ 0.57     $ 0.52  
    Diluted earnings per share $ 0.40     $ 0.36  
           
    Weighted-average basic shares outstanding   54,827       55,076  
    Weighted-average diluted shares outstanding   83,347       86,812  
                   
    EZCORP, Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
               
    (in thousands, except share and per share amounts) December 31,
    2024
      December 31,
    2023
      September 30,
    2024
               
    Assets:          
    Current assets:          
    Cash and cash equivalents $ 174,506     $ 218,516     $ 170,513  
    Restricted cash   9,386       8,470       9,294  
    Pawn loans   274,824       243,252       274,084  
    Pawn service charges receivable, net   45,198       40,002       44,013  
    Inventory, net   199,481       164,927       191,923  
    Prepaid expenses and other current assets   36,562       44,001       39,171  
    Total current assets   739,957       719,168       728,998  
    Investments in unconsolidated affiliates   13,555       10,125       13,329  
    Other investments   51,903       51,220       51,900  
    Property and equipment, net   63,231       68,998       65,973  
    Right-of-use assets, net   227,810       231,103       226,602  
    Goodwill   304,722       303,799       306,478  
    Intangible assets, net   57,093       56,977       58,451  
    Deferred tax asset, net   24,990       25,984       25,362  
    Other assets, net   15,872       13,819       16,144  
    Total assets $ 1,499,133     $ 1,481,193     $ 1,493,237  
               
    Liabilities and equity:          
    Current liabilities:          
    Current maturities of long-term debt, net $ 103,205     $ 34,307     $ 103,072  
    Accounts payable, accrued expenses and other current liabilities   68,682       69,386       85,737  
    Customer layaway deposits   24,216       18,324       21,570  
    Operating lease liabilities, current   57,900       57,980       58,998  
    Total current liabilities   254,003       179,997       269,377  
    Long-term debt, net   224,505       326,223       224,256  
    Deferred tax liability, net   2,186       372       2,080  
    Operating lease liabilities   182,228       188,475       180,616  
    Other long-term liabilities   12,317       11,243       12,337  
    Total liabilities   675,239       706,310       688,666  
    Commitments and contingencies          
    Stockholders’ equity:          
    Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,050,550 as of December 31, 2024; 52,272,594 as of December 31, 2023; and 51,582,698 as of September 30, 2024   520       523       516  
    Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171   30       30       30  
    Additional paid-in capital   345,783       343,870       348,366  
    Retained earnings   536,427       457,929       507,206  
    Accumulated other comprehensive loss   (58,866 )     (27,469 )     (51,547 )
    Total equity   823,894       774,883       804,571  
    Total liabilities and equity $ 1,499,133     $ 1,481,193     $ 1,493,237  
                           
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
       
      Three Months Ended
    December 31,
    (in thousands) 2024   2023
       
    Operating activities:      
    Net income $ 31,016     $ 28,470  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization   8,335       8,565  
    Amortization of debt discount and deferred financing costs   382       417  
    Non-cash lease expense   14,421       14,744  
    Deferred income taxes   478       345  
    Other adjustments   (617 )     (857 )
    Provision for inventory reserve   59       (156 )
    Stock compensation expense   2,597       2,264  
    Equity in net income from investment in unconsolidated affiliates   (1,475 )     (1,153 )
    Changes in operating assets and liabilities, net of business acquisitions:      
    Pawn service charges receivable   (1,368 )     (1,000 )
    Inventory   (2,384 )     2,066  
    Prepaid expenses, other current assets and other assets   1,375       (5,823 )
    Accounts payable, accrued expenses and other liabilities   (38,737 )     (33,991 )
    Customer layaway deposits   2,909       (719 )
    Income taxes   9,000       8,309  
    Net cash provided by operating activities   25,991       21,481  
    Investing activities:      
    Loans made   (247,225 )     (216,978 )
    Loans repaid   135,190       123,021  
    Recovery of pawn loan principal through sale of forfeited collateral   101,850       98,209  
    Capital expenditures, net   (5,609 )     (7,184 )
    Investment in other investments         (15,000 )
    Dividends from unconsolidated affiliates   1,902       1,745  
    Other   (148 )     (677 )
    Net cash used in investing activities   (14,040 )     (16,864 )
    Financing activities:      
    Taxes paid related to net share settlement of equity awards   (3,971 )     (3,253 )
    Purchase and retirement of treasury stock   (3,000 )     (3,007 )
    Payments of finance leases   (131 )     (132 )
    Net cash used in financing activities   (7,102 )     (6,392 )
    Effect of exchange rate changes on cash and cash equivalents and restricted cash   (764 )     (207 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   4,085       (1,982 )
    Cash and cash equivalents and restricted cash at beginning of period   179,807       228,968  
    Cash and cash equivalents and restricted cash at end of period $ 183,892     $ 226,986  
           
    EZCORP, Inc.
    OPERATING SEGMENT RESULTS
       
      Three Months Ended December 31, 2024
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn
      Other
    Investments
      Total Segments   Corporate
    Items
      Consolidated
                           
    Revenues:                      
    Merchandise sales $ 128,800     $ 57,543     $     $ 186,343     $     $ 186,343  
    Jewelry scrapping sales   15,498       1,234             16,732             16,732  
    Pawn service charges   87,876       29,176             117,052             117,052  
    Other revenues   27       16             43             43  
    Total revenues   232,201       87,969             320,170             320,170  
    Merchandise cost of goods sold   81,556       40,268             121,824             121,824  
    Jewelry scrapping cost of goods sold   11,968       974             12,942             12,942  
    Gross profit   138,677       46,727             185,404             185,404  
    Segment and corporate expenses (income):                      
    Store expenses   83,089       33,362             116,451             116,451  
    General and administrative                           18,669       18,669  
    Depreciation and amortization   2,717       2,046             4,763       3,572       8,335  
    Loss on sale or disposal of assets and other         8             8             8  
    Interest expense                           3,147       3,147  
    Interest income         (202 )     (594 )     (796 )     (1,297 )     (2,093 )
    Equity in net (income) loss of unconsolidated affiliates               (1,623 )     (1,623 )     148       (1,475 )
    Other (income) expense   (11 )     (71 )           (82 )     1,060       978  
    Segment contribution $ 52,882     $ 11,584     $ 2,217     $ 66,683          
    Income (loss) before income taxes             $ 66,683     $ (25,299 )   $ 41,384  
                                       

            

      Three Months Ended December 31, 2023
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn
      Other
    Investments
      Total Segments   Corporate
    Items
      Consolidated
                           
    Revenues:                      
    Merchandise sales $ 125,513     $ 53,890     $     $ 179,403     $     $ 179,403  
    Jewelry scrapping sales   12,815       1,267             14,082             14,082  
    Pawn service charges   79,073       27,376             106,449             106,449  
    Other revenues   37       16       4       57             57  
    Total revenues   217,438       82,549       4       299,991             299,991  
    Merchandise cost of goods sold   78,709       36,501             115,210             115,210  
    Jewelry scrapping cost of goods sold   11,284       924             12,208             12,208  
    Gross profit   127,445       45,124       4       172,573             172,573  
    Segment and corporate expenses (income):                      
    Store expenses   77,255       33,300             110,555             110,555  
    General and administrative                           16,543       16,543  
    Depreciation and amortization   2,624       2,339             4,963       3,602       8,565  
    Loss (gain) on sale or disposal of assets and other   26       (196 )           (170 )     (2 )     (172 )
    Interest expense                           3,440       3,440  
    Interest income         (420 )     (573 )     (993 )     (1,646 )     (2,639 )
    Equity in net income of unconsolidated affiliates               (1,153 )     (1,153 )           (1,153 )
    Other (income) expense         (48 )     1       (47 )     (224 )     (271 )
    Segment contribution $ 47,540     $ 10,149     $ 1,729     $ 59,418          
    Income (loss) before income taxes             $ 59,418     $ (21,713 )   $ 37,705  
                           
    EZCORP, Inc.
    STORE COUNT ACTIVITY
    (Unaudited)
       
      Three Months Ended December 31, 2024
      U.S. Pawn
      Latin America
    Pawn

      Consolidated
                           
    As of September 30, 2024   542       737       1,279  
    New locations opened         4       4  
    As of December 31, 2024   542       741       1,283  
                           
      Three Months Ended December 31, 2023
      U.S. Pawn
      Latin America
    Pawn

      Consolidated
                           
    As of September 30, 2023   529       702       1,231  
    New locations opened         5       5  
    Locations acquired   1             1  
    As of December 31, 2023   530       707       1,237  
                           

    Non-GAAP Financial Information (Unaudited)

    In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

    Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

    Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three months ended December 31, 2024 and 2023 were as follows:

           
      December 31,   Three Months Ended
    December 31,
      2024
      2023
      2024
      2023
                                   
    Mexican peso   20.8       17.0       20.1       17.5  
    Guatemalan quetzal   7.5       7.7       7.5       7.6  
    Honduran lempira   25.0       24.3       24.8       24.4  
    Australian dollar   1.6       1.5       1.5       1.5  
                                   

    Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

    Miscellaneous Non-GAAP Financial Measures

      Three Months Ended
    December 31,
    (in millions) 2024   2023
           
    Net income $ 31.0     $ 28.5  
    Interest expense   3.1       3.4  
    Interest income   (2.1 )     (2.6 )
    Income tax expense   10.4       9.2  
    Depreciation and amortization   8.3       8.6  
    EBITDA $ 50.8     $ 47.1  
                   

            

      Total
    Revenues
      Gross
    Profit
      Income
    Before Tax
      Tax Effect   Net
    Income
      Diluted
    EPS
      EBITDA
                               
    2025 Q1 Reported $ 320.2     $ 185.4     $ 41.4     $ 10.4     $ 31.0     $ 0.40     $ 50.8  
    FX Impact               1.0       0.2       0.8       0.01       1.0  
    Constant Currency   9.5       4.8       1.0       0.2       0.8       0.01       1.2  
    2025 Q1 Adjusted $ 329.7     $ 190.2     $ 43.4     $ 10.8     $ 32.6     $ 0.42     $ 53.0  
                                                           
      Total
    Revenues
      Gross
    Profit
      Income
    Before Tax
      Tax Effect   Net
    Income
      Diluted
    EPS
      EBITDA
                               
    2024 Q1 Reported $ 300.0     $ 172.6     $ 37.7     $ 9.2     $ 28.5     $ 0.36     $ 47.1  
    FX Impact               0.1             0.1             0.1  
    2024 Q1 Adjusted $ 300.0     $ 172.6     $ 37.8     $ 9.2     $ 28.6     $ 0.36     $ 47.2  
                                                           
      Three Months Ended
    December 31, 2024
    (in millions) U.S. Dollar
    Amount
      Percentage
    Change YOY
           
    Consolidated revenues $ 320.2       7 %
    Currency exchange rate fluctuations   9.5      
    Constant currency consolidated revenues $ 329.7       10 %
           
    Consolidated gross profit $ 185.4       7 %
    Currency exchange rate fluctuations   4.8      
    Constant currency consolidated gross profit $ 190.2       10 %
           
    Consolidated net inventory $ 199.5       21 %
    Currency exchange rate fluctuations   8.5      
    Constant currency consolidated net inventory $ 208.0       26 %
           
    Latin America Pawn gross profit $ 46.7       4 %
    Currency exchange rate fluctuations   4.8      
    Constant currency Latin America Pawn gross profit $ 51.5       14 %
           
    Latin America Pawn PLO $ 54.6       4 %
    Currency exchange rate fluctuations   8.1      
    Constant currency Latin America Pawn PLO $ 62.7       19 %
           
    Latin America Pawn PSC revenues $ 29.2       7 %
    Currency exchange rate fluctuations   2.8      
    Constant currency Latin America Pawn PSC revenues $ 32.0       17 %
           
    Latin America Pawn merchandise sales $ 57.5       7 %
    Currency exchange rate fluctuations   6.6      
    Constant currency Latin America Pawn merchandise sales $ 64.1       19 %
           
    Latin America Pawn segment profit before tax $ 11.6       14 %
    Currency exchange rate fluctuations   0.9      
    Constant currency Latin America Pawn segment profit before tax $ 12.5       24 %
                   

    The MIL Network

  • MIL-OSI Australia: Interest rate cuts, lower inflation, trade shifts – will Australia’s economy find its stride in 2025?

    Source: University of South Australia

    06 February 2025

    UniSA’s Credit Union SA Chair of Economics Dr Susan Stone.

    Australian households and businesses should benefit from lower interest rates and improved market conditions, in what a University of South Australia economist predicts will be a year of recovery for the country.

    UniSA’s Credit Union SA Chair of Economics Dr Susan Stone says global economic growth is expected to improve in 2025, with G20 economies averaging growth rates of 3.35%. India and Indonesia are stand out markets and will benefit Australia as they are both major export markets.

    Dr Stone says inflation is also expected to further recede, with central banks having reached their monetary policy targets in nearly half of the world’s advanced economies (US, UK, Canada, Japan etc) and close to 60% for emerging market economies (India, Brazil, South Africa etc).

    “Inflation is coming down in Australia and rate cuts are expected in the first half of the year, with many economists predicting one at the February meeting. However, there are still lingering concerns about Commonwealth payments affecting the CPI (consumer price index) numbers, with rents still growing strongly, services inflation running over 4%, a continued tight housing market and low unemployment,” she says,

    “All of this implies that spare capacity is limited in the economy and that any increase in demand accompanied by lowering interest rates could rekindle inflation.”

    Dr Stone, a former OECD and United Nations economist, says the labour market picture is more nuanced, with growth in full-time employment post-COVID-19 slightly ahead of part-time work, but this varies significantly by sector. The strongest employment increases have been in electricity, gas and water (EGW) and construction nationally.

    “EGW has more than doubled its employment growth since COVID (compared to the 10-year average) but it has come mainly through part-time work – 11% growth versus 3% growth in full-time jobs,” Dr Stone says. “The construction and health sectors were the next highest at 1.6% and 1.5% growth respectively. Both experienced stronger growth in full time workers than part-time.

    “Professional, scientific and technical services employment has actually grown at a slower rate in Australia since COVID with the average annual rate of 0.8% versus the average rate of 0.9% since 2014. However, manufacturing, while small, shows much stronger employment gains since COVID then in the 10-year period overall. In this sector, part-time employment has actually fallen while full-time has increased.

    “We see the construction sector really bouncing back from pre-COVID averages, with full-time job growth (at 1.7%) more than twice the rate as prior to COVID (0.7%) while part-time job growth remained the same (1%). Thus, tight conditions in the construction industry job market are likely to continue into 2025.”

    As inflation comes down and real wages rise, some recovery in household finances can be expected which should increase household spending. A key to growth in Australia’s economy for 2025 and beyond is business investment, Dr Stone says.

    “We saw volume measures of retail spending finish the year up, especially for household goods, which means people aren’t just spending more because of price increases. As the price index (CPI) continues to fall faster than the wage index (WPI), along with the expected cut in interest rates, household budgets should recover in 2025,” she says.

    Following Donald Trump’s official inauguration as the United States’ 47th president, like many countries, Australia is adapting to his return and promise of new tariffs on Canada, Mexico and China.

    Dr Stone says Australians may be affected by the additional trade barriers as even though the US accounts for only 5% of Australian exports, it still ranks as Australia’s fifth-largest export market.

    “We export a relatively small number of commodities to the US but it’s still an important customer for our advanced manufacturing sector. The US imports many of our high technology products such as hi-tech engines, aircraft and space parts and machine tools,” she says.

    “The US is also our second largest services export market, making up more than 10% of our total services trade. Service inputs are things like software, engineering or transport services that help produce international goods such as toys, laptops and refrigerators.”

    Dr Stone says overall, 2025 should be a year of recovery with Australian households and business benefitting from lower interest rates and improved market conditions.

    “Overseas markets are likely to remain rocky, but a weak dollar will help exports. Structural challenges in the housing market, innovation and business investment will need to be addressed to ensure sustained growth,” she adds.

    …………………………………………………………………………………………………………………………

     Contact for interview:  Dr Susan Stone, University of South Australia Credit Union SA Chair of Economics E: Susan.Stone@unisa.edu.au

    Media contact: Melissa Keogh, Communications Officer, UniSA M: +61 403 659 154 E: Melissa.Keogh@unisa.edu.au

    MIL OSI News

  • MIL-OSI Security: Steele County Man Sentenced to Over 17 Years for International Sexual Exploitation of Children

    Source: Office of United States Attorneys

    ST. PAUL, Minn. – A Blooming Prairie man has been sentenced to 210 months in prison followed by ten years of supervised release, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, beginning in April 2022, Steven John Sokel, 61, began communicating over the internet with the mother of a pre-pubescent minor victim in Thailand. On September 1, 2022, Sokel traveled to Thailand and stayed with the victim and the mother for almost a full month. During his time abroad, Sokel produced images of the minor victim engaging in sexually explicit activity.

    According to court documents, on September 29, 2022, Sokel left Thailand and had a layover in Abu Dhabi, United Arab Emirates. The Abu Dhabi airport has a U.S. Customs and Border Protection (CBP) preclearance facility for passengers flying to the United States. After finding items like sexual pleasure devices, handcuffs, and condoms in Sokel’s luggage, CBP officers conducted a search and found the child sexual abuse material on Sokel’s password-protected laptop.

    Sokel was sentenced in U.S. District Court by Judge Eric T. Tostrud on one count of sexual exploitation of children.

    This case is the result of an investigation conducted by Homeland Security Investigations and U.S. Customs and Border Protection.

    Assistant U.S. Attorney Campbell Warner prosecuted the case.

    MIL Security OSI

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Protects Safety, Fairness, and Dignity in Women’s Sports

    Source: The White House

    ENDING U.S. SUPPORT FOR RADICAL ANTI-AMERICAN UN ORGANIZATIONS: Today, President Donald J. Trump signed an Executive Order withdrawing the United States from the UN Human Rights Council (UNHRC) and prohibiting any future funding for the UN Relief and Works Agency for the Near East (UNRWA).

    • The Executive Order also requires the Secretary of State to review and report to the President on which international organizations, conventions, or treaties promote radical or anti-American sentiment.
      • The UN Educational, Science, and Cultural Organization (UNESCO), in particular, will undergo a review under an expedited timeline due to its history of anti-Israel bias.
    • The Executive Order will prohibit the United States from providing any additional funding to UNRWA, which has consistently shown itself to be anti-Semitic and anti-Israel, as evidenced by the number of its staff members who took part in the horrific October 7th terrorist attacks against Israel.
      • UNRWA facilities have repeatedly been used by Hamas and other terrorist groups to store weapons and build tunnels.

    STANDING UP FOR HUMAN RIGHTS: The UN Human Rights Council (UNHRC) has not fulfilled its purpose and continues to be used as a protective body for countries committing horrific human rights violations.

    • The UNHRC has demonstrated consistent bias against Israel, focusing on it unfairly and disproportionately in council proceedings.
    • In 2018, the year President Trump withdrew from the UNHRC in his first administration, the organization passed more resolutions condemning Israel than Syria, Iran, and North Korea combined.

    BUILDING ON PAST SUCCESS: During his first administration, President Trump stopped funding the UN Relief and Works Agency (UNRWA) and withdrew the United States from the UN Human Rights Council (UNHRC) and the UN Educational, Science and Cultural Organization (UNESCO).

    • President Trump in 2017: “The United Nations must reform if it is to be an effective partner in confronting threats to sovereignty, security, and prosperity.”
    • After the U.S. withdrew from UNESCO, the organization took steps to improve its relationship with Israel.
    • President Trump successfully stopped U.S. funding to UNRWA during his first administration. The Biden Administration initially resumed funding until being forced to confront UNRWA’s corruption after the October 7th attacks, and President Trump is once again taking action to stand up for human rights by withdrawing the United States from this corrupt organization for good.

    MIL OSI USA News

  • MIL-OSI Security: Defense News: Chief of Naval Operations Hosts Thailand’s Head of Navy for Counterpart Visit

    Source: United States Navy

    Chief of Naval Operations Adm. Lisa Franchetti hosted Adm. Jirapol Wongwit, Commander-in-Chief of the Royal Thai Navy (RTN) for an official counterpart visit, Feb. 3-5. 

    Jirapol’s trip to Washington D.C. was part of a five-day trip to the United States, that also included stops in Annapolis, Md., and Norfolk, Va., where the delegation visited Navy commands and spoke with Navy leaders and Sailors.

    “The U.S. and Thailand have enjoyed 191 years of friendly and diplomatic relations,” said Franchetti. “Thailand’s support to our Navy-Marine Corps team builds our interoperability and strengthens peace and security throughout the Indo-Pacific.”

    Jirapol began his trip visiting the U.S. Naval Academy, where he met with Superintendent Vice Adm. Yvette Davids and participated in a wreath laying ceremony.

    Franchetti hosted Jirapol for a full-honors welcoming ceremony and an office call, where she discussed the Navigation Plan for America’s Warfighting Navy, highlighting the value of strong cooperation with Allies and partners.

    During their office call, Franchetti and Jirapol discussed the importance of strengthening the RTN, building interoperability and combined participation in exercises such as Cobra Gold and CARAT Thailand (Cooperation Afloat Readiness and Training).  

    While in Washington D.C., Jirapol also conducted an office call with the Commandant of the Marine Corps Gen. Eric Smith, and Commander, U.S. Fleet Cyber Command / U.S. 10th Fleet, Vice Adm. Craig Clapperton.

    “I greatly thank Adm. Lisa Franchetti, Gen. Eric Smith, and all the senior U.S. Navy officials for their honorable welcome with exceptional hospitality,” said Jirapol. “This is the first time in 13 years since RTN leadership has had an office call with the Chief of Naval Operations. During the visiting, we had in-depth exchange of view to understand each other’s strategic standpoint and to enhance common view on maritime domain awareness for future cooperation, as well as to validate our shared interests and challenges in order to narrow the gap between Bangkok and Washington D.C..”

    He added, “Our invaluable relationship has been mindfully preserved to reach 191 years. Our engagement transmits common intent to prolong and strengthen lasting friendship.”

    Jirapol and the RTN representatives traveled to Norfolk to visit with leadership from U.S. Fleet Forces Command, tour USS New Mexico (SSN 779) and Norfolk’s Submarine Learning Facility. 

    Thailand is a major non-NATO ally, one of five U.S. treaty allies in the Indo-Pacific, and a leader within the Association of Southern Asian Nations (ASEAN).

    MIL Security OSI

  • MIL-OSI: EZCORP Reports First Quarter Fiscal 2025 Results Record PLO Drives Strong Increase in Net Income

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, Feb. 05, 2025 (GLOBE NEWSWIRE) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its first quarter ended December 31, 2024.

    Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year.

    FIRST QUARTER HIGHLIGHTS

    • Pawn loans outstanding (PLO) up 13% to $274.8 million.
    • Net income increased 9% to $31.0 million. On an adjusted basis1, net income increased 14% to $32.6 million.
    • Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
    • Adjusted EBITDA increased 12% to $53.0 million.
    • Total revenues increased 7% to $320.2 million, while gross profit increased 7% to $185.4 million.

    CEO COMMENTARY AND OUTLOOK

    Lachie Given, Chief Executive Officer, stated, “Fiscal 2025 is off to a strong start as we build on our momentum from 2024. Customer demand for immediate cash solutions and high quality, cost-effective secondhand goods remains high, as reflected by another quarter of record revenues and PLO. We also continued to drive meaningful improvements to our bottom line and deliver on the operating leverage inherent in our business, with adjusted EBITDA increasing 12% and adjusted diluted EPS increasing 17%.

    “Our consistent performance across geographies underscores the strength of our operations and customer-focused strategy. In the U.S., PLO grew 15%, driven by strong loan demand and higher average loan size. In Latin America, PLO rose 19% on a constant currency basis, with revenues up 18%, reflecting robust customer demand for loans and secondhand goods, as well as our outstanding customer service. Our EZ+ Rewards program also continues to perform exceptionally well, which accounted for 77% of all transacting customers. These results demonstrate the momentum we are gaining across markets and the success of our strategic initiatives.”

    “We are proud of the solid foundation we have built, which will enable us to continue driving growth both organically and through strategic M&A. Looking ahead, we plan to continue delivering exceptional service to our customers and enhancing value for our shareholders. We remain deeply committed to our core values of People, Pawn and Passion, and believe we are very well-positioned to deliver another record year of performance in fiscal 2025,” concluded Given.

    CONSOLIDATED RESULTS

    Three Months Ended December 31 As Reported   Adjusted1
    in millions, except per share amounts 2024
      2023
      2024
      2023
                   
    Total revenues $ 320.2     $ 300.0     $ 329.7     $ 300.0  
    Gross profit $ 185.4     $ 172.6     $ 190.2     $ 172.6  
    Income before tax $ 41.4     $ 37.7     $ 43.4     $ 37.8  
    Net income $ 31.0     $ 28.5     $ 32.6     $ 28.6  
    Diluted earnings per share $ 0.40     $ 0.36     $ 0.42     $ 0.36  
    EBITDA (non-GAAP measure) $ 50.8     $ 47.1     $ 53.0     $ 47.2  
                                   
    • PLO increased 13% to $274.8 million, up $31.6 million. On a same-store2 basis, PLO increased 12% due to increase in average loan size, continued strong pawn demand and improved operational performance.
    • Total revenues and gross profit increased 7%, reflecting improved pawn service charge (PSC) revenues as a result of higher average PLO in addition to higher merchandise sales and merchandise sales gross profit.
    • PSC increased 10% as a result of higher average PLO.
    • Merchandise sales gross margin remains within our target range at 35%, down from 36%. Aged general merchandise was 2.1% of total general merchandise inventory. 
    • Net inventory increased 21%, due to the increase in PLO and decrease in inventory turnover to 2.7x, from 3.0x.
    • Store expenses increased 5% and 3% on a same-store basis.
    • General and administrative expenses increased 13%, primarily due to labor (including incentive compensation) and, to a lesser extent, ongoing support costs related to Workday.
    • Income before taxes was $41.4 million, up 10% from $37.7 million, and adjusted EBITDA increased 12% to $53.0 million.
    • Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
    • Cash and cash equivalents at the end of the quarter was $174.5 million, up from $170.5 million as of September 30, 2024. The increase was primarily due to cash from operating activities, partially offset by increase in earning assets, capital expenditures, taxes paid related to net share settlement of equity awards and share repurchases.

    SEGMENT RESULTS

    U.S. Pawn

    • PLO ended the quarter at $220.2 million, up 15% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.
    • Total revenues increased 7% and gross profit increased 9%, reflecting higher PSC and merchandise sales.
    • PSC increased 11% as a result of higher average PLO.
    • Merchandise sales increased 3%, and gross margin was flat at 37%. Aged general merchandise increased to 2.6%, or $1.2 million of total general merchandise inventory. Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1%.
    • Net inventory increased 17%, in line with the growth in PLO. Inventory turnover decreased to 2.5x, from 2.7x.
    • Store expenses increased 8% (5% on a same-store basis), primarily due to labor costs (including higher health benefits) supporting more store activity, offset by a decrease in expenses related to our loyalty program.
    • Segment contribution increased 11% to $52.9 million.
    • During the quarter, segment store count remained at 542.

    Latin America Pawn

    • PLO improved to $54.6 million, up 4% (19% on constant currency basis). On a same-store basis, PLO increased 2% (17% on a constant currency basis) due to improved operational performance and increased loan demand.
    • Total revenues were up 7% (18% on constant currency basis), and gross profit increased 4% (14% on a constant currency basis), mainly due to increased PSC and higher merchandise sales.
    • PSC increased to $29.2 million, up 7% (17% on a constant currency basis) as a result of higher average PLO.
    • Merchandise sales increased 7% (19% on constant currency basis) and merchandise sales gross margin decreased to 30% from 32%. Aged general merchandise decreased to 1.4% from 1.6% of total general merchandise inventory.
    • Net inventory increased 35% (57% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.1x, from 3.8x.
    • Store expenses were flat (11% increase on a constant currency basis) and on a same-store basis decreased 2% (9% increase on a constant currency basis), primarily due to labor and rent.
    • Segment contribution increased 14% to $11.6 million (24% on a constant currency basis). On an adjusted basis, segment contribution was up 22% to $12.5 million.
    • During the quarter, segment store count increased by four de novo stores to 741.

    FORM 10-Q

    EZCORP’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.

    CONFERENCE CALL
    EZCORP will host a conference call on Thursday, February 6, 2025, at 8:00 am Central Time to discuss First Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://register.vevent.com/register/BI86f9072cf4c447ae86954e0a22daa957. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call. 

    ABOUT EZCORP

    Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index. 

    Follow us on social media:

    Facebook EZPAWN Official https://www.facebook.com/EZPAWN/

    EZCORP Instagram Official https://www.instagram.com/ezcorp_official/

    EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/

    EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/

    FORWARD LOOKING STATEMENTS

    This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company’s strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

    Contact:
    Email: Investor_Relations@ezcorp.com
    Phone: (512) 314-2220

    Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions. Numbers may not foot or cross foot due to rounding.
    1“Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.

    2“Same-store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.

       
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
       
      Three Months Ended
    December 31,
    (in thousands, except per share amounts) 2024   2023
    Revenues:      
    Merchandise sales $ 186,343     $ 179,403  
    Jewelry scrapping sales   16,732       14,082  
    Pawn service charges   117,052       106,449  
    Other revenues   43       57  
    Total revenues   320,170       299,991  
    Merchandise cost of goods sold   121,824       115,210  
    Jewelry scrapping cost of goods sold   12,942       12,208  
    Gross profit   185,404       172,573  
    Operating expenses:      
    Store expenses   116,451       110,555  
    General and administrative   18,669       16,543  
    Depreciation and amortization   8,335       8,565  
    Loss (gain) on sale or disposal of assets and other   8       (172 )
    Total operating expenses   143,463       135,491  
    Operating income   41,941       37,082  
    Interest expense   3,147       3,440  
    Interest income   (2,093 )     (2,639 )
    Equity in net income of unconsolidated affiliates   (1,475 )     (1,153 )
    Other expense (income)   978       (271 )
    Income before income taxes   41,384       37,705  
    Income tax expense   10,368       9,235  
    Net income $ 31,016     $ 28,470  
           
    Basic earnings per share $ 0.57     $ 0.52  
    Diluted earnings per share $ 0.40     $ 0.36  
           
    Weighted-average basic shares outstanding   54,827       55,076  
    Weighted-average diluted shares outstanding   83,347       86,812  
                   
    EZCORP, Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
               
    (in thousands, except share and per share amounts) December 31,
    2024
      December 31,
    2023
      September 30,
    2024
               
    Assets:          
    Current assets:          
    Cash and cash equivalents $ 174,506     $ 218,516     $ 170,513  
    Restricted cash   9,386       8,470       9,294  
    Pawn loans   274,824       243,252       274,084  
    Pawn service charges receivable, net   45,198       40,002       44,013  
    Inventory, net   199,481       164,927       191,923  
    Prepaid expenses and other current assets   36,562       44,001       39,171  
    Total current assets   739,957       719,168       728,998  
    Investments in unconsolidated affiliates   13,555       10,125       13,329  
    Other investments   51,903       51,220       51,900  
    Property and equipment, net   63,231       68,998       65,973  
    Right-of-use assets, net   227,810       231,103       226,602  
    Goodwill   304,722       303,799       306,478  
    Intangible assets, net   57,093       56,977       58,451  
    Deferred tax asset, net   24,990       25,984       25,362  
    Other assets, net   15,872       13,819       16,144  
    Total assets $ 1,499,133     $ 1,481,193     $ 1,493,237  
               
    Liabilities and equity:          
    Current liabilities:          
    Current maturities of long-term debt, net $ 103,205     $ 34,307     $ 103,072  
    Accounts payable, accrued expenses and other current liabilities   68,682       69,386       85,737  
    Customer layaway deposits   24,216       18,324       21,570  
    Operating lease liabilities, current   57,900       57,980       58,998  
    Total current liabilities   254,003       179,997       269,377  
    Long-term debt, net   224,505       326,223       224,256  
    Deferred tax liability, net   2,186       372       2,080  
    Operating lease liabilities   182,228       188,475       180,616  
    Other long-term liabilities   12,317       11,243       12,337  
    Total liabilities   675,239       706,310       688,666  
    Commitments and contingencies          
    Stockholders’ equity:          
    Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,050,550 as of December 31, 2024; 52,272,594 as of December 31, 2023; and 51,582,698 as of September 30, 2024   520       523       516  
    Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171   30       30       30  
    Additional paid-in capital   345,783       343,870       348,366  
    Retained earnings   536,427       457,929       507,206  
    Accumulated other comprehensive loss   (58,866 )     (27,469 )     (51,547 )
    Total equity   823,894       774,883       804,571  
    Total liabilities and equity $ 1,499,133     $ 1,481,193     $ 1,493,237  
                           
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
       
      Three Months Ended
    December 31,
    (in thousands) 2024   2023
       
    Operating activities:      
    Net income $ 31,016     $ 28,470  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization   8,335       8,565  
    Amortization of debt discount and deferred financing costs   382       417  
    Non-cash lease expense   14,421       14,744  
    Deferred income taxes   478       345  
    Other adjustments   (617 )     (857 )
    Provision for inventory reserve   59       (156 )
    Stock compensation expense   2,597       2,264  
    Equity in net income from investment in unconsolidated affiliates   (1,475 )     (1,153 )
    Changes in operating assets and liabilities, net of business acquisitions:      
    Pawn service charges receivable   (1,368 )     (1,000 )
    Inventory   (2,384 )     2,066  
    Prepaid expenses, other current assets and other assets   1,375       (5,823 )
    Accounts payable, accrued expenses and other liabilities   (38,737 )     (33,991 )
    Customer layaway deposits   2,909       (719 )
    Income taxes   9,000       8,309  
    Net cash provided by operating activities   25,991       21,481  
    Investing activities:      
    Loans made   (247,225 )     (216,978 )
    Loans repaid   135,190       123,021  
    Recovery of pawn loan principal through sale of forfeited collateral   101,850       98,209  
    Capital expenditures, net   (5,609 )     (7,184 )
    Investment in other investments         (15,000 )
    Dividends from unconsolidated affiliates   1,902       1,745  
    Other   (148 )     (677 )
    Net cash used in investing activities   (14,040 )     (16,864 )
    Financing activities:      
    Taxes paid related to net share settlement of equity awards   (3,971 )     (3,253 )
    Purchase and retirement of treasury stock   (3,000 )     (3,007 )
    Payments of finance leases   (131 )     (132 )
    Net cash used in financing activities   (7,102 )     (6,392 )
    Effect of exchange rate changes on cash and cash equivalents and restricted cash   (764 )     (207 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   4,085       (1,982 )
    Cash and cash equivalents and restricted cash at beginning of period   179,807       228,968  
    Cash and cash equivalents and restricted cash at end of period $ 183,892     $ 226,986  
           
    EZCORP, Inc.
    OPERATING SEGMENT RESULTS
       
      Three Months Ended December 31, 2024
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn
      Other
    Investments
      Total Segments   Corporate
    Items
      Consolidated
                           
    Revenues:                      
    Merchandise sales $ 128,800     $ 57,543     $     $ 186,343     $     $ 186,343  
    Jewelry scrapping sales   15,498       1,234             16,732             16,732  
    Pawn service charges   87,876       29,176             117,052             117,052  
    Other revenues   27       16             43             43  
    Total revenues   232,201       87,969             320,170             320,170  
    Merchandise cost of goods sold   81,556       40,268             121,824             121,824  
    Jewelry scrapping cost of goods sold   11,968       974             12,942             12,942  
    Gross profit   138,677       46,727             185,404             185,404  
    Segment and corporate expenses (income):                      
    Store expenses   83,089       33,362             116,451             116,451  
    General and administrative                           18,669       18,669  
    Depreciation and amortization   2,717       2,046             4,763       3,572       8,335  
    Loss on sale or disposal of assets and other         8             8             8  
    Interest expense                           3,147       3,147  
    Interest income         (202 )     (594 )     (796 )     (1,297 )     (2,093 )
    Equity in net (income) loss of unconsolidated affiliates               (1,623 )     (1,623 )     148       (1,475 )
    Other (income) expense   (11 )     (71 )           (82 )     1,060       978  
    Segment contribution $ 52,882     $ 11,584     $ 2,217     $ 66,683          
    Income (loss) before income taxes             $ 66,683     $ (25,299 )   $ 41,384  
                                       

            

      Three Months Ended December 31, 2023
    (Unaudited)
    (in thousands) U.S. Pawn   Latin America
    Pawn
      Other
    Investments
      Total Segments   Corporate
    Items
      Consolidated
                           
    Revenues:                      
    Merchandise sales $ 125,513     $ 53,890     $     $ 179,403     $     $ 179,403  
    Jewelry scrapping sales   12,815       1,267             14,082             14,082  
    Pawn service charges   79,073       27,376             106,449             106,449  
    Other revenues   37       16       4       57             57  
    Total revenues   217,438       82,549       4       299,991             299,991  
    Merchandise cost of goods sold   78,709       36,501             115,210             115,210  
    Jewelry scrapping cost of goods sold   11,284       924             12,208             12,208  
    Gross profit   127,445       45,124       4       172,573             172,573  
    Segment and corporate expenses (income):                      
    Store expenses   77,255       33,300             110,555             110,555  
    General and administrative                           16,543       16,543  
    Depreciation and amortization   2,624       2,339             4,963       3,602       8,565  
    Loss (gain) on sale or disposal of assets and other   26       (196 )           (170 )     (2 )     (172 )
    Interest expense                           3,440       3,440  
    Interest income         (420 )     (573 )     (993 )     (1,646 )     (2,639 )
    Equity in net income of unconsolidated affiliates               (1,153 )     (1,153 )           (1,153 )
    Other (income) expense         (48 )     1       (47 )     (224 )     (271 )
    Segment contribution $ 47,540     $ 10,149     $ 1,729     $ 59,418          
    Income (loss) before income taxes             $ 59,418     $ (21,713 )   $ 37,705  
                           
    EZCORP, Inc.
    STORE COUNT ACTIVITY
    (Unaudited)
       
      Three Months Ended December 31, 2024
      U.S. Pawn
      Latin America
    Pawn

      Consolidated
                           
    As of September 30, 2024   542       737       1,279  
    New locations opened         4       4  
    As of December 31, 2024   542       741       1,283  
                           
      Three Months Ended December 31, 2023
      U.S. Pawn
      Latin America
    Pawn

      Consolidated
                           
    As of September 30, 2023   529       702       1,231  
    New locations opened         5       5  
    Locations acquired   1             1  
    As of December 31, 2023   530       707       1,237  
                           

    Non-GAAP Financial Information (Unaudited)

    In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

    Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

    Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three months ended December 31, 2024 and 2023 were as follows:

           
      December 31,   Three Months Ended
    December 31,
      2024
      2023
      2024
      2023
                                   
    Mexican peso   20.8       17.0       20.1       17.5  
    Guatemalan quetzal   7.5       7.7       7.5       7.6  
    Honduran lempira   25.0       24.3       24.8       24.4  
    Australian dollar   1.6       1.5       1.5       1.5  
                                   

    Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

    Miscellaneous Non-GAAP Financial Measures

      Three Months Ended
    December 31,
    (in millions) 2024   2023
           
    Net income $ 31.0     $ 28.5  
    Interest expense   3.1       3.4  
    Interest income   (2.1 )     (2.6 )
    Income tax expense   10.4       9.2  
    Depreciation and amortization   8.3       8.6  
    EBITDA $ 50.8     $ 47.1  
                   

            

      Total
    Revenues
      Gross
    Profit
      Income
    Before Tax
      Tax Effect   Net
    Income
      Diluted
    EPS
      EBITDA
                               
    2025 Q1 Reported $ 320.2     $ 185.4     $ 41.4     $ 10.4     $ 31.0     $ 0.40     $ 50.8  
    FX Impact               1.0       0.2       0.8       0.01       1.0  
    Constant Currency   9.5       4.8       1.0       0.2       0.8       0.01       1.2  
    2025 Q1 Adjusted $ 329.7     $ 190.2     $ 43.4     $ 10.8     $ 32.6     $ 0.42     $ 53.0  
                                                           
      Total
    Revenues
      Gross
    Profit
      Income
    Before Tax
      Tax Effect   Net
    Income
      Diluted
    EPS
      EBITDA
                               
    2024 Q1 Reported $ 300.0     $ 172.6     $ 37.7     $ 9.2     $ 28.5     $ 0.36     $ 47.1  
    FX Impact               0.1             0.1             0.1  
    2024 Q1 Adjusted $ 300.0     $ 172.6     $ 37.8     $ 9.2     $ 28.6     $ 0.36     $ 47.2  
                                                           
      Three Months Ended
    December 31, 2024
    (in millions) U.S. Dollar
    Amount
      Percentage
    Change YOY
           
    Consolidated revenues $ 320.2       7 %
    Currency exchange rate fluctuations   9.5      
    Constant currency consolidated revenues $ 329.7       10 %
           
    Consolidated gross profit $ 185.4       7 %
    Currency exchange rate fluctuations   4.8      
    Constant currency consolidated gross profit $ 190.2       10 %
           
    Consolidated net inventory $ 199.5       21 %
    Currency exchange rate fluctuations   8.5      
    Constant currency consolidated net inventory $ 208.0       26 %
           
    Latin America Pawn gross profit $ 46.7       4 %
    Currency exchange rate fluctuations   4.8      
    Constant currency Latin America Pawn gross profit $ 51.5       14 %
           
    Latin America Pawn PLO $ 54.6       4 %
    Currency exchange rate fluctuations   8.1      
    Constant currency Latin America Pawn PLO $ 62.7       19 %
           
    Latin America Pawn PSC revenues $ 29.2       7 %
    Currency exchange rate fluctuations   2.8      
    Constant currency Latin America Pawn PSC revenues $ 32.0       17 %
           
    Latin America Pawn merchandise sales $ 57.5       7 %
    Currency exchange rate fluctuations   6.6      
    Constant currency Latin America Pawn merchandise sales $ 64.1       19 %
           
    Latin America Pawn segment profit before tax $ 11.6       14 %
    Currency exchange rate fluctuations   0.9      
    Constant currency Latin America Pawn segment profit before tax $ 12.5       24 %
                   

    The MIL Network

  • MIL-OSI USA: Commerce Committee Advances Schatz-Cruz Bipartisan Legislation To Keep Kids Safe, Healthy, Off Social Media

    US Senate News:

    Source: United States Senator for Hawaii Brian Schatz

    Bill Now Moves To Full Senate For Consideration

    WASHINGTON – Today, the U.S. Senate Commerce, Science, and Transportation Committee approved the Kids Off Social Media Act. Authored by U.S. Senators Brian Schatz (D-Hawai‘i), a senior member of the Senate Commerce Committee, Ted Cruz (R-Texas), Chair of the Senate Commerce Committee, Chris Murphy (D-Conn.), and Katie Britt (R-Ala.), the bipartisan legislation will keep kids off social media and help protect them from its harmful impacts. To do that, the bill would set a minimum age of 13 to use social media platforms and prevent social media companies from feeding algorithmically-targeted content to users under the age of 17. In addition to Schatz, Cruz, Murphy, and Britt, the Kids Off Social Media Act is cosponsored by U.S. Senators Peter Welch (D-Vt.), Ted Budd (R-N.C.), John Fetterman (D-Pa.), Angus King (I-Maine), Mark Warner (D-Va.), and John Curtis (R-Utah).

    “There is no good reason for a nine-year-old to be on Instagram or Snapchat. The growing evidence is clear: social media is making kids more depressed, more anxious, and more suicidal. Yet tech companies refuse to anything about it because it would hurt their bottom line. This is an urgent health crisis, and Congress must act with the boldness and urgency it demands,” said Senator Schatz. “Protecting kids online is not a partisan issue, and our bipartisan coalition – which includes several parents of kids and teenagers – represents the millions of parents across the country who’ve long been asking for help.”

    Upon the introduction of the Kids Off Social Media Act, Senator Cruz said, “Every parent I know is concerned about the online threats to kids—from predators to videos promoting self-harm, risky behavior, or low self-esteem. Many families have suffered due to Big Tech’s failure to take responsibility for its products. The Kids Off Social Media Act addresses these issues by supporting families in crisis and empowering teachers to better manage their classrooms. I am proud to work with Senator Schatz on this bipartisan legislation to combat the harms social media poses to children, especially in schools. As Chairman of the Commerce Committee, I am confident we can swiftly move this legislation and similar measures through committee and urge Congress to heed the calls of parents everywhere by delivering this bill to President Trump’s desk to help protect America’s youth.”

    Specifically, the Kids Off Social Media Act would:

    • Prohibit social media platforms from allowing children under the age of 13 to create or maintain social media accounts;
    • Prohibit social media companies from pushing targeted content using algorithms to users under the age of 17;
    • Provide the FTC and state attorneys general authority to enforce the provisions of the bill; and
    • Follow existing CIPA framework, with changes, to require schools to work in good faith to limit social media on their federally-funded networks, which many schools already do.

    Parents overwhelmingly support the mission of the Kids Off Social Media Act. A survey conducted by Count on Mothers shows that over 90 percent of mothers agree that there should be a minimum age of 13 for social media. Additionally, 87 percent of mothers agree that social media companies should not be allowed to use personalized recommendation systems to deliver content to children. Pew finds similar levels of concern from parents, reporting that 70 percent or more of parents worry that their teens are being exposed to explicit content or wasting too much time on social media, with two-thirds of parents saying that parenting is harder today compared to 20 years ago—and many of them cited social media as a contributing factor.

    The Kids Off Social Media Act is supported by Public Citizen, National Organization for Women, National Association of Social Workers, National League for Nursing, National Association of School Nurses, KidsToo, Count on Mothers, American Federation of Teachers, American Counseling Association, National Federation of Families, National Association of Pediatric Nurse Practitioners, National Council for Mental Wellbeing, Parents Television and Media Council, Tyler Clementi Foundation, Parents Who Fight, Conservative Ladies of America, David’s Legacy Foundation, Digital Progress, HAS Coalition, Parents Defending Education Action, Concerned Women for America Legislative Action Committee, and the American Academy of Child and Adolescent Psychiatry.

    A copy of the legislation is available here. For more information on the Kids Off Social Media Act, click here.

    MIL OSI USA News

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

    Source: GlobeNewswire (MIL-OSI)

    • Fourth quarter revenue of $1,341 million decreased 5% sequentially and 2% year-over-year; full year revenue of $5,513 million increased 7% from prior year, driven by international revenue growth of 10%
    • Fourth quarter operating income of $198 million decreased 19% sequentially and 8% year-over-year; full year operating income of $938 million increased 14% from prior year
    • Fourth quarter net income of $112 million, an 8.4% margin, decreased 29% sequentially and 20% year-over-year; full year net income of $506 million, a 9.2% margin, increased by 21% from prior year
    • Fourth quarter adjusted EBITDA* of $326 million, a 24.3% margin, decreased 8%, or 88 basis points, sequentially and increased 2%, or 74 basis points, year-over-year; full year adjusted EBITDA* of $1,382 million, a 25.1% margin, increased 17%, or 197 basis points, from prior year
    • Fourth quarter cash provided by operating activities of $249 million and adjusted free cash flow* of $162 million; full year cash provided by operating activities of $792 million and adjusted free cash flow* of $524 million
    • Shareholder return of $67 million for the quarter, which included dividend payments of $18 million and share repurchases of $49 million
    • Board approved quarterly cash dividend of $0.25 per share, payable on March 19, 2025, to shareholders of record as of February 21, 2025

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    HOUSTON, Feb. 05, 2025 (GLOBE NEWSWIRE) — Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the fourth quarter of 2024 and full year 2024.

    Revenues for the fourth quarter of 2024 were $1,341 million, a decrease of 5% sequentially and 2% year-over-year. Operating income was $198 million in the fourth quarter of 2024, compared to $243 million in the third quarter of 2024 and $216 million in the fourth quarter of 2023. Net income in the fourth quarter of 2024 was $112 million, with an 8.4% margin, a decrease of 29%, or 279 basis points, sequentially, and a decrease of 20%, or 193 basis points, year-over-year. Adjusted EBITDA* was $326 million, a 24.3% margin, a decrease of 8%, or 88 basis points, sequentially, and an increase of 2%, or 74 basis points, year-over-year. Basic income per share in the fourth quarter of 2024 was $1.54 compared to $2.14 in the third quarter of 2024 and $1.94 in the fourth quarter of 2023. Diluted income per share in the fourth quarter of 2024 was $1.50 compared to $2.06 in the third quarter of 2024 and $1.90 in the fourth quarter of 2023.

    Fourth quarter 2024 cash flows provided by operating activities were $249 million, compared to $262 million in the third quarter of 2024, and $375 million in the fourth quarter of 2023. Adjusted free cash flow* was $162 million, a decrease of $22 million sequentially, and $153 million year-over-year. Capital expenditures were $100 million in the fourth quarter of 2024, compared to $78 million in the third quarter of 2024, and $67 million in the fourth quarter of 2023.

    Revenue for the full year 2024 was $5,513 million, compared to revenues of $5,135 million in 2023. Operating income for the full year was $938 million, compared to $820 million in 2023. The Company’s full year 2024 net income was $506 million, compared to $417 million in 2023. Full year cash flows provided by operations were $792 million, compared to $832 million in 2023. Adjusted free cash flow* for the full year was $524 million compared to $651 million in 2023. Capital expenditures for the full year 2024 were $299 million, compared to $209 million in 2023.

    Girish Saligram, President and Chief Executive Officer, commented, “The fourth quarter witnessed a significant drop in activity levels in Latin America and a more cautious tone in a few key geographies. Despite a challenging environment in the fourth quarter, the overall full year 2024 was another one of setting new operational highs, and I would like to express my gratitude to the One Weatherford team for that. We ended the year with the best safety record we have ever had, strong margin expansion and solid cash generation.

    While the activity outlook continues to evolve, margins and cash flow performance continue to be the cornerstone of our financial and strategic objectives. We are well-positioned to deliver another year of strong cash flow generation in 2025. While there is some temporary activity reduction, we continue to believe in the industry’s mid to long-term resilience and remain committed to our goal of achieving EBITDA margins in the high 20’s over the next few years.”

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    Operational & Commercial Highlights

    • ADNOC awarded Weatherford a three-year contract for the provision of rigless services as part of the reactivation of ADNOC’s onshore strings.
    • Kuwait Oil Company (KOC) awarded Weatherford a Managed Pressure Drilling (MPD) services contract focused on improving operational efficiency, enhancing safety, accelerating well-delivery timelines, and reducing costs by deploying Weatherford’s innovative VictusTM Intelligent MPD system.
    • KOC awarded Weatherford a one-year contract to provide and operate two onshore Real Time Decision Centers.
    • A National Oil Company (NOC) in Qatar awarded Weatherford a five-year contract to provide fishing and drilling tools, with a five-year extension option.
    • An NOC in Asia awarded Weatherford a three-year contract for the provision of Wireline conveyance and tooling services and a three-year contract for Tubular Running Services (TRS) in onshore India.
    • OMV Petrom awarded Weatherford a two-year contract for openhole and cased-hole logging services in Romania.
    • A major operator in Asia awarded Weatherford a three-year contract for providing ModusTM MPD services for two zones in North and South Sumatra, and awarded a five-year contract to provide openhole and cased-hole Wireline in onshore Indonesia.
    • Khalda awarded Weatherford a three-year contract to deploy up to 300 wells in Egypt using CygNet® SCADA and ForeSite® platform.
    • Azule Energy awarded Weatherford a three-year contract to provide TRS for the NGC Project in offshore Angola. This is in addition to the recently awarded TRS contract in block 15/06 in the deepwater block.
    • PTTEP awarded Weatherford a 24-month contract to provide openhole Wireline Services in onshore Thailand.
    • A major operator in Asia awarded Weatherford with a four-year contract to provide Rotating Control Devices to enable MPD in offshore Indonesia.
    • Shell Petroleum Development Company awarded Weatherford a three-year contract to provide Well Completions and other related specialized services in onshore Nigeria.

    Technology Highlights
    On January 14, 2025, at the annual IKTVA forum held at Dahan Dharan Expo, Weatherford signed an agreement with SPARK, a fully integrated industrial ecosystem aimed at making Saudi Arabia a global energy hub. This strategic partnership, aligned with Saudi Arabia’s Vision 2030, enhances Weatherford’s local presence, boosts production capabilities, and supports the region’s energy goals. By advancing local content, fostering talent, and driving innovation, Weatherford demonstrates its commitment to economic growth and to supporting Saudi Arabia’s leadership in energy innovation.

    • Drilling & Evaluation (“DRE”)
      • In the North Sea, Weatherford successfully deployed the world’s first Dual Advanced Kickover Tool for Equinor. The unique solution enables gas lift valve replacements in just a single run, which significantly increases efficiency and reduces cost of conventional systems.
      • In Saudi Arabia, Weatherford deployed its compact wireline logging tools with shuttle technology to achieve a record total depth for Aramco. This extended reach well features the longest horizontal section, measuring 23,000 feet.
    • Well Construction and Completions (“WCC”)
      • In deepwater Brazil, Weatherford successfully installed the first OptiRoss® RFID Multi-Cycle Sliding Sleeve Valve for a major operator. The system enhances acid stimulation efficiency, improving production and boosting the reservoir’s oil recovery factor.
      • In the Middle East, Weatherford successfully deployed its market-leading Optimax Tubing Retrievable Safety Valve for an NOC. This deployment enabled gas lift valve replacements in a single run, significantly increasing efficiency and reducing costs compared to conventional systems.
    • Production and Intervention (“PRI”)
      • In the Middle East, Weatherford’s Alpha1Go remote re-entry system was deployed for an NOC, optimizing rig site operations by significantly reducing whipstock preparation time and minimizing red-zone exposure. This deployment improved both efficiency and safety, demonstrating the system’s effectiveness in facilitating well re-entry operations and real-time team collaboration in various rig environments.
      • In US land operations, Weatherford successfully deployed its first Reclaim Dual Barrier Plug and Abandon (P&A) system for a major operator. This innovative dual barrier P&A system safely and reliably abandons wells without the need to pull tubing. By eliminating the requirement for conventional drilling rigs, it significantly reduces costs and minimizes the carbon footprint.

    Shareholder Return

    During the fourth quarter of 2024, Weatherford repurchased shares for approximately $49 million and paid dividends of $18 million, resulting in total shareholder return of $67 million. Since the inception of the shareholder return program introduced earlier in 2024, the Company repurchased shares for approximately $99 million and paid dividends of $36 million, resulting in total shareholder return of $135 million.

    On January 29, 2025, our Board declared a cash dividend of $0.25 per share of the Company’s ordinary shares, payable on March 19, 2025, to shareholders of record as of February 21, 2025.

    Results by Reportable Segment

    Drilling and Evaluation (“DRE”)

        Three Months Ended   Variance     Twelve Months Ended   Variance
    ($ in Millions)   Dec 31,
    2024
      Sep 30,
    2024
      Dec 31,
    2023
      Seq.     YoY   Dec 31,
    2024
      Dec 31,
    2023
      YoY
    Revenue   $ 398     $ 435     $ 382     (9 )%   4 %   $ 1,682     $ 1,536     10 %
    Segment Adjusted EBITDA   $ 96     $ 111     $ 97     (14 )%   (1 )%   $ 467     $ 422     11 %
    Segment Adj EBITDA Margin     24.1 %     25.5 %     25.4 %   (140) bps   (127) bps     27.8 %     27.5 %   29 bps

    Fourth quarter 2024 DRE revenue of $398 million decreased by $37 million, or 9% sequentially, primarily from lower activity in Latin America, partly offset by higher international Wireline activity. Year-over-year DRE revenues increased by $16 million, or 4%, primarily from higher activity in North America and higher international Wireline activity, partly offset by lower activity in Latin America.

    Fourth quarter 2024 DRE segment adjusted EBITDA of $96 million decreased by $15 million, or 14% sequentially, primarily driven by lower activity in Latin America, partly offset by higher international Wireline activity. Year-over-year DRE segment adjusted EBITDA decreased by $1 million, or 1%, primarily due to lower activity in Latin America, partly offset by improved performance in Middle East/North Africa/Asia.

    Full year 2024 DRE revenues of $1,682 million increased by $146 million, or 10% compared to 2023, as higher Wireline and Drilling-related services activity were partly offset by lower Drilling Services in Latin America.

    Full year 2024 DRE segment adjusted EBITDA of $467 million increased by $45 million, or 11% compared to 2023, as higher MPD and Wireline activity were partly offset by lower activity in Latin America.

    Well Construction and Completions (“WCC”)

        Three Months Ended   Variance     Twelve Months Ended   Variance
    ($ in Millions)   Dec 31,
    2024
      Sep 30,
    2024
      Dec 31,
    2023
      Seq.     YoY   Dec 31,
    2024
      Dec 31,
    2023
      YoY
    Revenue   $ 505     $ 509     $ 480     (1 )%   5 %   $ 1,976     $ 1,800     10 %
    Segment Adjusted EBITDA   $ 148     $ 151     $ 131     (2 )%   13 %   $ 564     $ 455     24 %
    Segment Adj EBITDA Margin     29.3 %     29.7 %     27.3 %   (36) bps   202 bps     28.5 %     25.3 %   326 bps

    Fourth quarter 2024 WCC revenue of $505 million decreased by $4 million, or 1% sequentially, primarily due to lower activity in Europe/Sub-Sahara Africa/Russia, partly offset by higher Completions and TRS activity in Middle East/North Africa/Asia. Year-over-year WCC revenues increased by $25 million, or 5%, primarily due to higher activity in Middle East/North Africa/Asia and higher Liner Hangers and Well Services activity in Latin America, partly offset by lower activity in North America.

    Fourth quarter 2024 WCC segment adjusted EBITDA of $148 million decreased by $3 million, or 2% sequentially, primarily due to lower activity in Europe/Sub-Sahara Africa/Russia, partly offset by higher Completions and TRS activity in Middle East/North Africa/Asia. Year-over-year WCC segment adjusted EBITDA increased by $17 million, or 13%, primarily due to higher activity in Middle East/North Africa/Asia, partly offset by lower activity in Europe/Sub-Sahara Africa/Russia.

    Full year 2024 WCC revenues of $1,976 million increased by $176 million, or 10% compared to 2023, primarily from higher activity in Middle East/North Africa/Asia and Latin America, partly offset by lower activity in North America.

    Full year 2024 WCC segment adjusted EBITDA of $564 million increased by $109 million, or 24% compared to 2023, primarily due to improved fall through in major product lines across all geographies.

    Production and Intervention (“PRI”)

        Three Months Ended   Variance       Twelve Months Ended   Variance  
    ($ in Millions)   Dec 31,
    2024
      Sep 30,
    2024
      Dec 31,
    2023
      Seq.     YoY     Dec 31,
    2024
      Dec 31,
    2023
      YoY  
    Revenue   $ 364     $ 371     $ 386     (2 )%   (6 )%   $ 1,452     $ 1,472     (1 )%
    Segment Adjusted EBITDA   $ 78     $ 83     $ 88     (6 )%   (11 )%   $ 319     $ 323     (1 )%
    Segment Adj EBITDA Margin     21.4 %     22.4 %     22.8 %   (94) bps   (137) bps     22.0 %     21.9 %   3 bps

    Fourth quarter 2024 PRI revenue of $364 million decreased by $7 million, or 2% sequentially, primarily due to lower activity in Latin America and lower Intervention Services and Drilling Tools (ISDT) activity in Europe/Sub-Sahara Africa/Russia and North America. Year-over-year PRI revenue decreased by $22 million, or 6%, as lower activity in Middle East/North Africa/Asia and Latin America was partly offset by higher Artificial Lift activity in North America.

    Fourth quarter 2024 PRI segment adjusted EBITDA of $78 million, decreased by $5 million, or 6% sequentially, primarily from lower activity in Latin America and lower ISDT activity in Europe/Sub-Sahara Africa/Russia and North America, partly offset by higher Artificial Lift activity in Middle East/North Africa/Asia. Year-over-year PRI segment adjusted EBITDA decreased by $10 million, or 11% year-over-year, primarily due to lower activity in Latin America and Europe/Sub-Sahara Africa/Russia, partly offset by better ISDT and Artificial Lift fall through in North America.

    Full year 2024 PRI revenues of $1,452 million decreased by $20 million, or 1% compared to 2023, primarily due to lower international Pressure Pumping and Digital Solutions activity, partly offset by higher ISDT activity in Europe/Sub-Sahara Africa/Russia and Middle East/North Africa/Asia.

    Full year 2024 PRI segment adjusted EBITDA of $319 million decreased by $4 million, or 1% compared to 2023, as lower activity in international Pressure Pumping and Digital Solutions was partly offset by improved performance in Artificial Lift.

    Revenue by Geography

        Three Months Ended   Variance   Twelve Months Ended   Variance
    ($ in Millions)   Dec 31,
    2024
      Sep 30,
    2024
      Dec 31,
    2023
      Seq.   YoY   Dec 31,
    2024
      Dec 31,
    2023
      YoY
    North America   $ 261   $ 266   $ 248   (2 )%   5 %   $ 1,046   $ 1,068   (2 )%
                                     
    International   $ 1,080   $ 1,143   $ 1,114   (6 )%   (3 )%   $ 4,467   $ 4,067   10 %
    Latin America     312     358     342   (13 )%   (9 )%     1,393     1,387   %
    Middle East/North Africa/Asia     542     542     547   %   (1 )%     2,123     1,815   17 %
    Europe/Sub-Sahara Africa/Russia     226     243     225   (7 )%   %     951     865   10 %
    Total Revenue   $ 1,341   $ 1,409   $ 1,362   (5 )%   (2 )%   $ 5,513   $ 5,135   7 %


    North America

    Fourth quarter 2024 North America revenue of $261 million decreased by $5 million, or 2% sequentially, primarily due to activity decreases in the North and South regions, partly offset by activity increase offshore in the Gulf of Mexico. Year-over-year, North America increased by $13 million, or 5%, primarily from higher Artificial Lift and Wireline activity, partly offset by a decrease in activity across the WCC segment.

    Full year 2024 North America revenue of $1,046 million decreased by $22 million, or 2%, compared to 2023, primarily due to lower activity in the WCC and PRI segments, partly offset by higher Wireline activity.

    International

    Fourth quarter 2024 international revenue of $1,080 million decreased 6% sequentially and decreased 3% year-over-year, and full year 2024 international revenue of $4,467 million increased 10%, compared to 2023.

    Fourth quarter 2024 Latin America revenue of $312 million decreased by $46 million, or 13% sequentially, primarily due to lower Drilling-related Services, partly offset by higher Liner Hangers activity. Year-over-year, Latin America revenue decreased by $30 million, primarily due to lower activity in the DRE and PRI segments, partly offset by higher activity in Liner Hangers and Well Services.

    Full year 2024 Latin America revenue of $1,393 million was largely flat, compared to 2023.

    Fourth quarter 2024 revenue of $542 million in Middle East/North Africa/Asia was flat sequentially, as higher activity from Completions and Artificial Lift were largely offset by lower MPD and Integrated Services & Projects. Year-over-year, the Middle East/North Africa/Asia revenue decreased by $5 million, or 1%, primarily due to lower activity in the PRI segment, partly offset by higher Drilling-related services and Completions activity.

    Full year 2024 revenue of $2,123 million in Middle East/North Africa/Asia increased by $308 million, or 17%, compared to 2023, mainly due to increased activity in the DRE and WCC segments, partly offset by lower activity in Digital Solutions, Artificial Lift and Pressure Pumping.

    Fourth quarter 2024 Europe/Sub-Sahara Africa/Russia revenue of $226 million decreased by $17 million, or 7%, sequentially, mainly driven by lower Completions and ISDT activity, partly offset by higher Wireline activity. Year-over-year Europe/Sub-Sahara Africa/Russia revenue was largely flat due to increased activity in the DRE segment, largely offset by lower activity in the WCC and PRI segments.

    Full year 2024 Europe/Sub-Sahara Africa/Russia revenue of $951 million increased by $86 million, or 10% compared to 2023, due to increased activity in the DRE and WCC segments, partly offset by lower Pressure Pumping and Artificial Lift activity.

    About Weatherford
    Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 19,000 team members representing more than 110 nationalities and 330 operating locations. Visit weatherford.com for more information and connect with us on social media.

    Conference Call Details

    Weatherford will host a conference call on Thursday, February 6, 2025, to discuss the Company’s results for the fourth quarter ended December 31, 2024. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).

    Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.

    Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.

    A telephonic replay of the conference call will be available until February 20, 2025, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 9530137. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.

    Contacts
    For Investors:
    Luke Lemoine
    Senior Vice President, Corporate Development & Investor Relations
    +1 713-836-7777
    investor.relations@weatherford.com

    For Media:
    Kelley Hughes
    Senior Director, Communications & Employee Engagement
    media@weatherford.com

    Forward-Looking Statements

    This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, based on factors including but not limited to: global political disturbances, war, terrorist attacks, changes in global trade policies and tariffs, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflict, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to remain competitive, and to address and participate in changes to the market demands, including for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to effectively execute our capital allocation framework; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.

    These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission, including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    Weatherford International plc
    Selected Statements of Operations (Unaudited)
                         
        Three Months Ended   Year Ended
    ($ in Millions, Except Per Share Amounts)   December
    31, 2024
      September
    30, 2024
      December
    31, 2023
      December
    31, 2024
      December
    31, 2023
    Revenues:                    
    DRE Revenues   $ 398     $ 435     $ 382     $ 1,682     $ 1,536  
    WCC Revenues     505       509       480       1,976       1,800  
    PRI Revenues     364       371       386       1,452       1,472  
    All Other     74       94       114       403       327  
    Total Revenues     1,341       1,409       1,362       5,513       5,135  
                         
    Operating Income:                    
    DRE Segment Adjusted EBITDA[1]   $ 96     $ 111     $ 97     $ 467     $ 422  
    WCC Segment Adjusted EBITDA[1]     148       151       131       564       455  
    PRI Segment Adjusted EBITDA[1]     78       83       88       319       323  
    All Other[2]     11       23       13       84       38  
    Corporate[2]     (7 )     (13 )     (8 )     (52 )     (52 )
    Depreciation and Amortization     (83 )     (89 )     (83 )     (343 )     (327 )
    Share-based Compensation     (10 )     (10 )     (9 )     (45 )     (35 )
    Other Charges     (35 )     (13 )     (13 )     (56 )     (4 )
    Operating Income     198       243       216       938       820  
                         
    Other Expense:                    
    Interest Expense, Net of Interest Income of $12, $13, $12, $56 and $59     (25 )     (24 )     (31 )     (102 )     (123 )
    Loss on Blue Chip Swap Securities                       (10 )     (57 )
    Other Expense, Net     (4 )     (41 )     (36 )     (87 )   (134 )
    Income Before Income Taxes     169       178       149       739       506  
    Income Tax Provision     (45 )     (12 )     (2 )     (189 )     (57 )
    Net Income     124       166       147       550       449  
    Net Income Attributable to Noncontrolling Interests     12       9       7       44       32  
    Net Income Attributable to Weatherford   $ 112     $ 157     $ 140     $ 506     $ 417  
                         
    Basic Income Per Share   $ 1.54     $ 2.14     $ 1.94     $ 6.93     $ 5.79  
    Basic Weighted Average Shares Outstanding     72.6       73.2       72.1       73.0       71.9  
                         
    Diluted Income Per Share[3]   $ 1.50     $ 2.06     $ 1.90     $ 6.75     $ 5.66  
    Diluted Weighted Average Shares Outstanding     74.5       75.2       73.9       74.9       73.7  
                                             
    [1]   Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation and other adjustments. Research and development expenses are included in segment adjusted EBITDA.
    [2]   All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting.
    [3]   Included the maximum potentially dilutive shares contingently issuable for an acquisition consideration during the three months ended September 30, 2024, the value of which was adjusted out of Net Income Attributable to Weatherford in calculating diluted income per share.
    Weatherford International plc
    Selected Balance Sheet Data (Unaudited)
           
    ($ in Millions) December 31, 2024   December 31, 2023
    Assets:      
    Cash and Cash Equivalents $ 916   $ 958
    Restricted Cash   59     105
    Accounts Receivable, Net   1,261     1,216
    Inventories, Net   880     788
    Property, Plant and Equipment, Net   1,061     957
    Intangibles, Net   325     370
           
    Liabilities:      
    Accounts Payable   792     679
    Accrued Salaries and Benefits   302     387
    Current Portion of Long-term Debt   17     168
    Long-term Debt   1,617     1,715
           
    Shareholders’ Equity:      
    Total Shareholders’ Equity   1,283     922
               
    Weatherford International plc
    Selected Cash Flows Information (Unaudited)
                         
        Three Months Ended   Year Ended
    ($ in Millions)   December
    31, 2024
      September
    30, 2024
      December
    31, 2023
      December
    31, 2024
      December
    31, 2023
    Cash Flows From Operating Activities:                    
    Net Income   $ 124     $ 166     $ 147     $ 550     $ 449  
    Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:                    
    Depreciation and Amortization     83       89       83       343       327  
    Foreign Exchange Losses (Gain)     (2 )     35       43       56       116  
    Loss on Blue Chip Swap Securities                       10       57  
    Gain on Disposition of Assets     (2 )     (1 )           (35 )     (11 )
    Deferred Income Tax Provision (Benefit)           (19 )     (19 )     8       (86 )
    Share-Based Compensation     10       10       9       45       35  
    Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits     24       30       151       (120 )     (84 )
    Other Changes, Net     12       (48 )     (39 )     (65 )     29  
    Net Cash Provided By Operating Activities     249       262       375       792       832  
                         
    Cash Flows From Investing Activities:                    
    Capital Expenditures for Property, Plant and Equipment     (100 )     (78 )     (67 )     (299 )     (209 )
    Proceeds from Disposition of Assets     13             7       31       28  
    Purchases of Blue Chip Swap Securities                       (50 )     (110 )
    Proceeds from Sales of Blue Chip Swap Securities                       40       53  
    Business Acquisitions, Net of Cash Acquired           (15 )           (51 )     (4 )
    Other Investing Activities     1       1       (71 )     36       (47 )
    Net Cash Used In Investing Activities     (86 )     (92 )     (131 )     (293 )     (289 )
                         
    Cash Flows From Financing Activities:                    
    Repayments of Long-term Debt     (23 )     (5 )     (80 )     (287 )     (386 )
    Distributions to Noncontrolling Interests     (20 )     (10 )     (31 )     (39 )     (52 )
    Tax Remittance on Equity Awards     (22 )           (2 )     (31 )     (56 )
    Share Repurchases     (49 )     (50 )           (99 )      
    Dividends Paid     (18 )     (18 )           (36 )      
    Other Financing Activities     (1 )     (6 )     (13 )     (19 )     (20 )
    Net Cash Used In Financing Activities   $ (133 )   $ (89 )   $ (126 )   $ (511 )   $ (514 )

                      

    Weatherford International plc
    Non-GAAP Financial Measures Defined (Unaudited)

    We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted EBITDA* – Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted EBITDA Margin* – Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted Free Cash Flow* – Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Net Debt* – Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.​

    Net Leverage* – Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    *Non-GAAP – as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled

    Weatherford International plc
    GAAP to Non-GAAP Financial Measures Reconciled (Unaudited)
     
                         
        Three Months Ended   Year Ended
    ($ in Millions, Except Margin in Percentages)   December
    31, 2024
      September
    30, 2024
      December
    31, 2023
      December
    31, 2024
      December
    31, 2023
    Revenues   $ 1,341     $ 1,409     $ 1,362     $ 5,513     $ 5,135  
    Net Income Attributable to Weatherford   $ 112     $ 157     $ 140     $ 506     $ 417  
    Net Income Margin     8.4 %     11.1 %     10.3 %     9.2 %     8.1 %
    Adjusted EBITDA*   $ 326     $ 355     $ 321     $ 1,382     $ 1,186  
    Adjusted EBITDA Margin*     24.3 %     25.2 %     23.6 %     25.1 %     23.1 %
                         
    Net Income Attributable to Weatherford   $ 112     $ 157     $ 140     $ 506     $ 417  
    Net Income Attributable to Noncontrolling Interests     12       9       7       44       32  
    Income Tax Provision     45       12       2       189       57  
    Interest Expense, Net of Interest Income of $12, $13, $12, $56 and $59     25       24       31       102       123  
    Loss on Blue Chip Swap Securities                       10       57  
    Other Expense, Net     4       41       36       87       134  
    Operating Income     198       243       216       938       820  
    Depreciation and Amortization     83       89       83       343       327  
    Other Charges[1]     35       13       13       56       4  
    Share-Based Compensation     10       10       9       45       35  
    Adjusted EBITDA*   $ 326     $ 355     $ 321     $ 1,382     $ 1,186  
                         
    Net Cash Provided By Operating Activities   $ 249     $ 262     $ 375     $ 792     $ 832  
    Capital Expenditures for Property, Plant and Equipment     (100 )     (78 )     (67 )     (299 )     (209 )
    Proceeds from Disposition of Assets     13             7       31       28  
    Adjusted Free Cash Flow*   $ 162     $ 184     $ 315     $ 524     $ 651  
    [1]   Other charges in the three and twelve months ended December 31, 2024, primarily included severance and restructuring costs and fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico.
         

    *Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined

    Weatherford International plc
    GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited)
     
                   
         
    ($ in Millions)   December
    31, 2024
      September
    30, 2024
      December
    31, 2023
     
    Current Portion of Long-term Debt   $ 17   $ 21   $ 168  
    Long-term Debt     1,617     1,627     1,715  
    Total Debt   $ 1,634   $ 1,648   $ 1,883  
                   
    Cash and Cash Equivalents   $ 916   $ 920   $ 958  
    Restricted Cash     59     58     105  
    Total Cash   $ 975   $ 978   $ 1,063  
                   
    Components of Net Debt              
    Current Portion of Long-term Debt   $ 17   $ 21   $ 168  
    Long-term Debt     1,617     1,627     1,715  
    Less: Cash and Cash Equivalents     916     920     958  
    Less: Restricted Cash     59     58     105  
    Net Debt*   $ 659   $ 670   $ 820  
                   
    Net Income for trailing 12 months   $ 506   $ 534   $ 417  
    Adjusted EBITDA* for trailing 12 months   $ 1,382   $ 1,377   $ 1,186  
                   
    Net Leverage* (Net Debt*/Adjusted EBITDA*)     0.48 x   0.49 x   0.69 x
                         

    *Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined

    The MIL Network

  • MIL-OSI New Zealand: Serious crash, Chivalry Rd, Glenfield

    Source: New Zealand Police (District News)

    Emergency services are currently at the scene of a serious crash on Chivalry Rd, Glenfield, where a cyclist has struck a stationary vehicle.

    Police were called about 9.30am.

    The cyclist is reported to be in critical condition.

    The road is closed, with diversions in place.

    Motorists should avoid the area if possible.

    ENDS

    Issued by Police Media Centre

    MIL OSI New Zealand News

  • MIL-OSI Australia: Online tax schemes on the rise

    Source: Australian Department of Revenue

    The ATO is warning the community to be alert for potentially dodgy tax schemes which are spreading online, including through social media.

    Acting Deputy Commissioner Sarah Taylor is urging individuals to be wary of online promotion of tax schemes promising to significantly reduce or avoid tax altogether.

    ‘Sometimes tax schemes can be peddled as investment schemes. We don’t want to see honest people lured into unlawful tax schemes with false promises of high returns and tax savings – if an offer seems too good to be true, it probably is,’ Ms Taylor said.

    ‘Those who invest in unlawful tax schemes stand to lose their hard-earned cash, and risk paying tax with interest and heavy penalties.’

    ‘Promoters of these schemes are often opportunistic and target vulnerable people. Protect yourself and your money by getting advice from a registered tax practitioner before committing to anything,’ Ms Taylor said.

    The ATO’s website lists a number of tax schemes to look out for. In one particular recent scheme, individuals are being advised to invest in a start-up company that allegedly qualifies as an early-stage innovation company (ESIC). By investing in an ESIC, they’re told they can then claim the early-stage investor tax offset on shares purchased through the financing arrangement.

    The ATO is concerned individuals may be entering into these arrangements under the belief they are entitled to the tax benefits claimed using the financing arrangements. We are also concerned that the companies may not qualify as ESICs.

    Another type of tax scheme being promoted in the community promises individuals they can avoid paying tax by setting up a purported non-profit foundation and diverting their income to it. These schemes are not effective and the individuals will still have to pay the tax on the income.

    If you are approached with tax arrangements that sound like either of these examples, or sound too good to be true, seek advice from a registered tax practitioner and report it to the ATO.

    The ATO takes a strong stance against all types of unlawful tax schemes and their promotion.

    ‘Promoting and participating in unlawful tax schemes are not victimless crimes. Those who choose to engage in these behaviours are attempting to obtain an unfair advantage over those who do the right thing,’ Ms Taylor said.

    ‘We take targeted action against unlawful tax schemes that promote tax avoidance behaviours and against those who promote these schemes. We are committed to helping protect the community against misinformation about schemes spread on various channels.’

    If you are offered an unlawful tax scheme, you should reject it and report it to the ATO confidentially by:

    • completing the tip-off form on the ATO website
    • phoning the tip-off hotline on 1800 060 062.

    If you suspect that you’ve inadvertently become involved in an unlawful tax scheme, you should also contact the ATO immediately. If you proactively approach the ATO, you may be eligible for a reduction in any penalties imposed.

    To check if a tax practitioner is registered, use the Tax Practitioners Board’s public registerExternal Link.

    More information about unlawful tax schemes can be found at ato.gov.au/taxschemes.

    MIL OSI News

  • MIL-OSI Security: Lawton Man Sentenced to Serve Life in Federal Prison for Murder After Woman’s Body is Found in Wildlife Refuge in Indian Country

    Source: Office of United States Attorneys

    Co-Defendant Previously Sentenced to Serve 96 Months for Accessory After the Fact to Murder

    OKLAHOMA CITY – TEVIN TERRELL SEMIEN, 30, of Lawton, has been sentenced to serve life in federal prison for second-degree murder and illegal possession of a firearm after a previous felony conviction, announced U.S. Attorney Robert J. Troester.

    According to public record, on May 17, 2023, Karon “Dinkers” Conneywerdy Smith, 68, was found dead in the Wichita Mountains Wildlife Refuge. Investigators searched Smith’s home, which was within Indian Country, and observed blood consistent with a violent struggle. Smith’s vehicle was missing as well. On May 21, 2023, Texas law enforcement observed Smith’s vehicle driving south of Dallas, Texas. Officers attempted to pull the vehicle over, but the vehicle fled at a high speed and eventually crashed into a lake. The two occupants of the vehicle, later identified as Semien and Nicole Leigh Logsdon, attempted to flee on foot but were apprehended.

    On October 17, 2023, a federal grand jury returned a four-count Indictment against Semien and co-defendant Nicole Leigh Logsdon, 25, also of Lawton. The Indictment charged Semien with one count of first-degree premeditated murder, one alternative count of second-degree murder, and one count of illegally possessing a firearm after a previous felony conviction. Logsdon was separately charged with accessory after the fact to murder.

    On April 22, 2024, Semien pleaded guilty to second-degree murder and being a felon in possession of a firearm. As part of his plea, Semien admitted to deliberately and intentionally killing Smith.

    On January 10, 2024, Logsdon pleaded guilty to accessory after the fact to murder and admitted to helping Semien in his attempt to avoid arrest and prosecution. On July 15, 2024, Logsdon was sentenced to serve 96 months in federal prison, followed by three years of supervised release.

    At the sentencing hearing on February 3, 2025, U.S. District Judge Stephen P. Friot sentenced Semien to serve life in federal prison. In announcing his sentence, Judge Friot noted the nature and circumstances of the offense, pointing out that Semien’s choices and conduct amounted to an “unfathomably cruel and depraved murder.” Judge Friot also noted Semien’s criminal history.  Public record further reflects that Semien has previous felony convictions which include burglary in Jefferson County, Texas, and conspiracy to commit second degree burglary in Comanche County District Court case number CF-2022-292.

    This case is in federal court because Smith and Logsdon are enrolled members of the Comanche Nation and the murder occurred within Indian Country.

    This case is a result of an investigation by the FBI Oklahoma City, Dallas, and New Orleans field offices; the Oklahoma State Bureau of Investigation; the U.S. Fish and Wildlife Service; the Comanche Nation Police Department; the Comanche County Sheriff’s Office; the Lawton Police Department; the U.S. Marshals Service; the Rice, Texas Police Department; and the Navarro County, Texas Sheriff’s Office. Special Assistant U.S. Attorney Kaleigh Blackwell and Trial Attorney Mark Stoneman with DOJ’s Criminal Division (former AUSA with the Western District of Oklahoma) prosecuted the case.

    The case furthers the Department of Justice’s Missing or Murdered Indigenous Persons efforts to address violence against Native American individuals. More information about this initiative is at https://www.justice.gov/tribal/mmip.

    Reference is made to public filings for more information. 

    MIL Security OSI

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

    Fourth Quarter and Fiscal 2024 Highlights

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

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

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

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

    Outlook

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

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

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

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

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

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

    Use of Non-GAAP Financial Information:

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

    About FormFactor:

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

    Forward-looking Statements:

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

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

     

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

    About our Non-GAAP Financial Measures:

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

    Source: FormFactor, Inc.
    FORM-F

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

    About ZBAI

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

    Forward-Looking Statements

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

    Contact Information
    kenny@atifchina.com

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

    Forward-Looking Statements

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

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

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

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

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

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

    The MIL Network

  • MIL-OSI Economics: Welcome to IADC’s 2025 Executive Committee!

    Source: International Association of Drilling Contractors – IADC

    Headline: Welcome to IADC’s 2025 Executive Committee!

    KEVIN NEVEU, CHAIR

    Precision Drilling Corporation

    Kevin Neveu is President, Chief Executive Officer and a Director of Precision Drilling Corporation and has held these positions since joining the company in 2007. Mr. Neveu has 43 years of experience in the oilfield services sector holding various technical, marketing, and management positions over his career. Mr. Neveu holds a Bachelor of Science degree in Mechanical Engineering and is a graduate of the University of Alberta and is a registered Professional Engineer in the province of Alberta. He has also completed the Harvard Advanced Management Program in Boston, Massachusetts.

    RODDIE MACKENZIE, VICE CHAIR

    Transocean

    Named to his current position in February 2022, Mr. Mackenzie is responsible for identifying innovative technologies that create demonstrable value for Transocean’s customers and differentiate Transocean from its competitors in addition to leading Transocean’s Marketing organization. Mr. Mackenzie served previously as Senior Vice President, Marketing, Innovation and Industry Relations; Vice President, Marketing and Contracts; Managing Director, Business Development and Strategic Accounts, and as a Marketing Director with increasing roles of responsibility in the United States, France, and Dubai. He brings over 20 years of industry experience and prior to his time in Marketing, Mr. Mackenzie served in various operational and project roles around the globe, starting his career at Transocean as a rig-based engineer in 1997. He has worked on all manner of drilling rigs in Algeria, Nigeria, Cameroon, Angola, Brazil, and the US Gulf of Mexico.

    Mr. Mackenzie currently serves as Vice President for Offshore Division of the International Association of Drilling Contractors and on various committees for the Offshore Energy Center.

    Mr. Mackenzie graduated from the Harvard Business School Advanced Management Program in 2016 and received his bachelor’s degree from the University of Strathclyde in Civil Engineering with Environmental Studies in 1997.

    BRAD JAMES, IMMEDIATE PAST CHAIR

    Enterprise Offshore Drilling

    Mr. James has served as founding President, CEO and Board Member of Enterprise Offshore Drilling LLC since 2016. He previously served as Sr. Vice President – Marketing of Hercules Offshore from 2006 through 2016 and was responsible for managing worldwide marketing activity for Hercules drilling divisions. Prior to that he held various leadership roles at Transocean Offshore (including R&B Falcon and Cliffs Drilling), was founding President of Field Drilling Company and Vice President of Southland Drilling. He currently serves on the IADC Executive Committee and is a board member of IADC Drillers PAC and is a former Chairman of the IADC Houston Chapter. Mr. James obtained a Bachelor of Business Administration degree from Southwest Texas State University in 1981.

    JENNIFER YEUNG, SECRETARY/TREASURER

    Noble Corporation

    Ms. Yeung was named Vice President, Chief Accounting Officer and Controller of Noble in November 2023. Prior to joining Noble, she served at Ernst & Young LLP, an accounting and professional services firm, in various roles of increasing responsibility since January 2007. Most recently, Ms. Yeung served as Audit Managing Director from October 2020 through September 2023, and as Audit Senior Manager from July 2014 through October 2020, serving clients across a range of industries including offshore drilling.

    Ms. Yeung is a certified public accountant and received a Bachelor of Accountancy and a Bachelor of Business Administration, Finance from Loyola University.

    LEE WOMBLE, DIVISION VP DRILLING SERVICES

    SLB

    Lee Womble is Vice President and Global Accounts Director for SLB with global responsibility for drilling contractor accounts over all SLB divisions and basins.

    He joined Cameron Iron Works in 1988 as a Product Design Engineer after receiving his Bachelor of Science degree in Mechanical Engineering from the University of Texas at Austin. Lee received his registered Professional Engineer license from the State of Texas in 1993 and obtained his first patent in 1994. He has since managed engineering, repair operations, manufacturing, field service and sales.

    Mr. Womble has since held numerous positions throughout his 36-year career such as Design Engineer, Repair and Sales Mgr., Regional Manager, Director and now Vice President since 2007. He has lived in locations such as the US, Saudi Arabia, Egypt, Indonesia, and Malaysia. Lee has served on committees for API, AADE, IADC and The Joint Industry Task Force. He is currently focused on help SLB lead in technology, performance, and customer centricity.

    GENE STAHL, DIVISION VP NORTH AMERICA ONSHORE

    Precision Drilling Corporation

    Gene Stahl was appointed as President, North American Drilling in 2023 and previously held the position of Chief Marketing Officer since 2019. Since joining Precision Drilling in 1993, Mr. Stahl has progressed his way through the organization holding several positions with increasing responsibility, including Contracts, Investor Relations, Engineering, Manufacturing, Rig Construction, Procurement, Field Training and Development, and Health, Safety and Environment (HSE). Mr. Stahl holds a Bachelor of Arts degree in Economics from the University of Calgary and is a graduate of the Harvard Business School, Advanced Management Program.

    JON RICHARDS, DIVISION VP OFFSHORE

    Noble Corporation

    Jon Richards currently serves as Vice President Operations for Noble Corporation. He previously served as Senior Vice President of Worldwide Operations for Diamond Offshore. Mr. Richards joined Diamond Offshore in 1997 and has over 27 years of experience in the offshore drilling industry.

    Jon started his career as an Operations Development Trainee with Diamond and has since held various leadership roles and responsibilities managing operations in the United States, United Kingdom, West Africa, and Brazil. Jon holds a degree in Business Management from Texas Tech University and participates in various roles as a member of the IADC. In his free time, Jon enjoys spending time outdoors with his family and volunteering with youth sports.

    JIM NOWOTNY, DIVISION VP INTERNATIONAL ONSHORE

    Helmerich & Payne

    Jim Nowotny is the Vice President International and Offshore Business Development at Helmerich & Payne.  He has extensive domestic and international leadership experience in multiple areas of the offshore and land drilling industry, including marketing and business development, commercial and technical contracts, operations, manufacturing, and engineering.  He has worked in the energy industry since 1995.

    Prior to joining Helmerich & Payne, he worked for an international oil field equipment manufacturer.  There he was responsible for four manufacturing business units within Canada and the USA.  He oversaw all aspects of business operations, including the manufacturing, engineering, and business development groups. Jim also worked for over 16 years in various roles for Atwood Oceanics, an international offshore drilling contractor.  He worked in increasing roles of responsibility in the areas of engineering, operations, marketing, and business development.

    Jim has a Bachelor of Science degree in mechanical engineering from Texas A&M University and has completed several executive education courses at Columbia Business School, Harvard Law School and Kellogg School of Management at Northwestern University.

    MIL OSI Economics

  • MIL-OSI USA: Senator Coons, Representative Chu reintroduce bill to prevent Muslim bans

    US Senate News:

    Source: United States Senator for Delaware Christopher Coons

    WASHINGTON – U.S. Senator Chris Coons (D-Del.) and Representative Judy Chu (D-Calif.) reintroduced the National Origin-Based Antidiscrimination for Nonimmigrants (NO BAN) Act, which would prevent future bans by the Trump administration on Muslims or any other religious group by strengthening the Immigration and Nationality Act to prohibit discrimination based on religion. The bill would also require that any suspension of entry into the United States be narrowly tailored, backed by credible evidence, and subject to appropriate consultation with Congress.

    “President Trump’s Muslim ban during his first term was un-American, unjust, and weakened our standing in the world,” said Senator Coons. “Now, as the country enters President Trump’s second term, fear and prejudice are once again guiding immigration policy, and his flurry of executive orders have laid the groundwork for another attempt at a Muslim ban. The NO BAN Act is needed now more than ever to ensure that the Trump administration cannot implement discriminatory measures and to reaffirm our nation’s commitment to religious freedom and equality under the law.”

    “A hateful stain on our nation’s history, the Muslim Ban that President Trump instituted in his first term was fueled by bigotry and Islamophobia and did lasting damage to the families it separated,” said Representative Chu. “Distressingly, President Trump has already started the process to fulfill his campaign promise to reinstate a ban, signing an Executive Order on his first day back in office that lays the groundwork for a future, and potentially expanded, Muslim Ban. That’s why I am joining Senator Coons and my Democratic colleagues to once again introduce the NO BAN Act to make certain that no president can ever ban people from entering the country solely because of their religion.”

    Additionally, Senator Alex Padilla (D-Calif.) and Representative Pramila Jayapal (D-Wash.) reintroduced the Access to Counsel Act, which Senator Coons cosponsored. This bill ensures that U.S. citizens, green card holders, and other individuals with legal status are able to consult with an attorney, relative, or other interested parties to seek assistance if they are detained by Customs and Border Protection (CBP) for more than an hour at ports of entry, including airports. As a result of President Trump’s Muslim Ban in 2017, individuals were held for long periods of time, often without access to legal counsel.

    The NO BAN Act was initially introduced in the 116th Congress in response to President Trump’s attempts in 2017 to introduce a Muslim ban. Courts initially struck down the bans, but a conservative Supreme Court upheld a version of the ban in a 5-4 decision. As a result, families were separated, couples were forced to live apart, and communities were unable to reunite for milestones of joy and grief. While former President Biden rescinded the bans, President Trump has signaled intent to issue a new travel ban in the coming months.

    The NO BAN Act passed the U.S. House of Representatives in both 2020 and 2021. In 2021, the Biden administration issued a statement in support of the legislation, noting that the prior “bans were a stain on our national conscience and are inconsistent with our long history of welcoming people of all faiths.”   

    An executive order issued by President Trump on his first day of his second term requires government departments to identify over the course of 60 days nations whose migration and screening processes are “so deficient as to warrant a partial or full suspension on the admission of nationals from those countries.” The order lays the groundwork for another ban on migration from predominantly Muslim countries.

    The NO BAN Act would push back on Trump’s Muslim ban or any other travel ban by:

    • Providing that the Immigration and Nationality Act nondiscrimination provisions apply to religion, as well as to the issuance of non-immigrant visas and benefits;
    • Requiring that any travel restriction imposed under Immigration and Nationality Act be based on specific and credible facts, and in a way narrowly tailored to address a compelling government interest; and
    • Establishing procedural requirements, including notice to Congress within 48 hours, and periodic reporting.

    The NO BAN Act has received endorsements from numerous immigrants’ rights organizations, faith-based organizations, and civil rights organizations, including Care in Action, 18 Million Rising, Afghans For A Better Tomorrow, African Public Affairs Committee, America Indivisible, American Humanist Association, American Immigration Lawyers Association, American-Arab Anti-Discrimination Committee (ADC), Americans for Immigrant Justice, Amica Center for Immigrant Rights, ANAR, Asian Law Caucus, Asian Pacific Institute on Gender-Based Violence, Asylum Seeker Advocacy Project (ASAP), Bend the Arc: Jewish Action, Center for Constitutional Rights, Center for Gender & Refugee Studies, Church World Service, Communities United for Status & Protection (CUSP), Council on American-Islamic Relations (CAIR), Emgage Action, Friends Committee on National Legislation, Global Refuge, Hindus for Human Rights, Human Rights First, Immigrant Legal Resource Center, Immigrants Act Now, Interfaith Alliance, International Refugee Assistance Project, League of Conservation Voters, Muslims for Just Futures, National Council of Jewish Women, National Domestic Workers Alliance, National Immigrant Justice Center, National Immigration Law Center, National Korean American Service & Education Consortium (NAKASEC), National LGBTQ Task Force Action Fund, National Partnership for New Americans, National Religious Campaign Against Torture, NETWORK Lobby for Catholic Social Justice, Poligon Education Fund, Queer Crescent, Quixote Center, Refugee Council USA (RCUSA), Refugees International, Sadhana: Coalition of Progressive Hindus, Shoulder to Shoulder Campaign, Sikh American Legal Defense and Education Fund (SALDEF), Social Workers for Immigration Justice, South Asian Legal Defense Fund, South Asian Public Health Association (SAPHA), The Advocates for Human Rights, The Sikh Coalition, Union for Reform Judaism, Win Without War, Lutheran School of Theology at Chicago, ACLU, Brennan Center for Justice, Arab American Civic Council, ASATA Power, Asian Americans Advancing Justice Southern California (AJSOCAL), CAIR Washington, California Immigrant Policy Center, Center for Islamic Life at Rutgers University, Civic Ark, Colorado Immigrant Rights Coalition, Education Law Center-PA, Estrella del Paso, Family Action Network Movement, Immigrant Defenders Law Center (ImmDef), Indo-American Center, Islamic Society of Central Jersey, Malikah, Muslim Justice League, Wind of the Spirit Immigrant Resource Center, Womankind, and Concerned Christian Citizen.

    “As President Trump fulfills his racist campaign promises by indefinitely blocking all vulnerable refugees and by preparing a potential resurrection of categorical bans on people who come to the U.S. from African, Muslim-majority, or other countries, we welcome the timely reintroduction of an essential policy rooted in the highest American aspirations of equality, religious freedom, and refuge from tyrannical leaders,” said Sumayyah Waheed, Senior Policy Counsel, Muslim Advocates. “With the reintroduction of the NO BAN Act, we hope to check discriminatory and cruel abuses of presidential power at our borders. We remember clearly the hate, chaos, and family separation resulting from President Trump’s first-term Muslim and African bans – effects that remain unresolved to this day. Meanwhile, people seeking safety at our borders are forced to face unlawful, dehumanizing, debilitating, and even lethal barriers to doing so. We thank Rep. Chu and Sen. Coons for their leadership and urge Members in both houses to swiftly pass this bill.”

    “The first time President Trump was in the White House, as we all watched his xenophobic Muslim ban wreak havoc on families in airports and communities across the country, the ACLU took to the courts for relief. This time around, the landscape includes the Supreme Court’s decision to allow Trump’s previous ban to go into effect. We can’t sit back as Trump again seeks to inflict cruelty. The NO BAN Act is an important effort to uphold our fundamental values and ensure our laws prevent discriminatory bans from being enacted in the future,” said Naureen Shah, deputy director of government affairs with the ACLU Equality Division. 

    “Donald Trump’s Muslim Ban was a stain on America’s conscience and President Biden’s Executive Order rescinding the various versions of the ban was an important first step,” said Yasmine Taeb, Legislative and Political Director at MPower Change Action Fund. “During the campaign trail, Trump vowed not only to reinstate the Muslim Ban but to expand it, and has made good on that promise by previewing a travel ban on his first day back in office. To ensure our communities do not face the threat of family separation, xenophobia, and Islamophobia through the implementation of another unconstitutional and unconscionable ban by Trump, Congress needs to take action and pass the NO BAN Act. We’re grateful for the leadership of Representative Chu and Senator Coons in reintroducing the NO BAN Act and urge Congress to pass the bill swiftly.”

    “Trump’s discriminatory Muslim and African bans inflicted unthinkable cruelty and separated families. The policy was met with widespread resistance, with thousands of people making their voices heard in protests at airports across the country. With Trump’s return to office, and his day-one executive order signaling another forthcoming ban, we must all do everything in our power to ensure these harmful bans do not return. We commend Senator Coons’ and Representative Chu’s leadership on this issue and call on Congress to pass the NO BAN Act today to protect communities from lasting harm,” said Raha Wala, Vice President of Strategic Partnerships and Advocacy at the National Immigration Law Center.

    “Thousands of American families will soon be separated and America’s economic competitiveness will be damaged if President Trump reimposes the so-called travel ban. The scars of the first ban have not yet fully healed, and some who were denied entry under the first ban are staring down more than four years of separation from their families. As members of Trump’s own coalition have noted, U.S. innovation and economic strength are fueled by immigrants from Iran and other countries that will potentially be banned. It is not stable or secure or fair to American families for the U.S. to impose and repeal such policies every four years by executive fiat — Congress must act as a co-equal branch and establish guardrails that protect the rights, security, and economy for all Americans by passing the NO BAN Act,” said Jamal Abdi, President of National Iranian American Council Action.

    “The reintroduction of the NO BAN Act in the 119th Congress is a crucial step in reaffirming America’s historic role as a beacon of hope and opportunity for immigrants. For generations, the United States has stood as a nation that values diversity, equity, and justice. This legislation ensures that the executive power cannot be misused to undermine these principles or to close our doors to those seeking opportunity and refuge. We extend our gratitude to Representative Judy Chu, Senator Chris Coons, and the original co-sponsors of this critical bill and urge Congress to act swiftly to pass it, preserving the ideals that have long defined and strengthened our nation,” said Wa’el Alzayat, CEO of Emgage Action. 

    The text of the bill is available here. 

    A section-by-section summary of the bill is available here.

    MIL OSI USA News

  • MIL-OSI Economics: How real-world businesses are transforming with AI – with 50 new stories

    Source: Microsoft

    Headline: How real-world businesses are transforming with AI – with 50 new stories

    Updated February 5, 2025: The post contains 50 new customer stories, which appear at the beginning of each section of customer lists. The post will be updated regularly with new stories.

    One of the highlights of my career has always been connecting with customers and partners across industries to learn how they are using technology to drive their businesses forward. In the past 30 years, we’ve seen four major platform shifts, from client server to internet and the web to mobile and cloud to now — the next major platform shift to AI.  

    As today’s platform shift to AI continues to gain momentum, Microsoft is working to understand just how organizations can drive lasting business value. We recently commissioned a study with IDC, The Business Opportunity of AI, to uncover new insights around business value and help guide organizations on their journey of AI transformation. The study found that for every $1 organizations invest in generative AI, they’re realizing an average of $3.70 in return — and uncovered insights about the future potential of AI to reshape business processes and drive change across industries.

    Check out the top 5 AI trends to watch from IDC and Microsoft

    Today, more than 85% of the Fortune 500 are using Microsoft AI solutions to shape their future. In working with organizations large and small, across every industry and geography, we’ve seen that most transformation initiatives are designed to achieve one of four business outcomes:  

    1. Enriching employee experiences: Using AI to streamline or automate repetitive, mundane tasks can allow your employees to dive into more complex, creative and ultimately more valuable work.
    2. Reinventing customer engagement: AI can create more personalized, tailored customer experiences, delighting your target audiences while lightening the load for employees.
    3. Reshaping business processes: Virtually any business process can be reimagined with AI, from marketing to supply chain operations to finance, and AI is even allowing organizations to go beyond process optimization and discover exciting new growth opportunities.
    4. Bending the curve on innovation: AI is revolutionizing innovation by speeding up creative processes and product development, reducing the time to market and allowing companies to differentiate in an often crowded field.

    In this blog, we’ve collected more than 300 of our favorite real-life examples of how organizations are embracing Microsoft’s proven AI capabilities to drive impact and shape today’s platform shift to AI. Today, we’ve added new stories of customers using our AI capabilities at the beginning of each section. We’ll regularly update this story with more. We hope you find an example or two that can inspire your own transformation journey.

    Enriching employee experiences

    Generative AI is truly transforming employee productivity and wellbeing. Our customers tell us that by automating repetitive, mundane tasks, employees are freed up to dive into more complex and creative work. This shift not only makes the work environment more stimulating but also boosts job satisfaction. It sparks innovation, provides actionable insights for better decision-making and supports personalized training and development opportunities, all contributing to a better work-life balance. Customers around the world have reported significant improvements in employee productivity with these AI solutions:

    New Stories:

    1. Acentra Health created MedScribe using Azure OpenAI Service. The solution has saved 11,000 nursing hours and nearly $800,000. It also helped each nurse process 20 to 30 letters daily, while achieving a 99% approval rate for MedScribe-generated letters.
    2. Brisbane Catholic Education provides Microsoft 365 Copilot to 12,500 educators, and uses Microsoft Copilot Studio to create a generative AI tool to help educators integrate Catholic traditions and values into the classroom.
    3. Crediclub saves 96% per month in auditing expenses and analyzes 150 meetings per hour with Azure AI, freeing up time for 800 sales advisors and 150 branch managers to interact directly with customers.
    4. eClinicalWorks developed a tool using Azure AI services and Azure AI Document Intelligence to help healthcare workers scan, sort and match thousands of faxes each year to match the faxed data with current patient files.
    5. Education Authority of Northern Ireland (EANI) introduced Microsoft 365 Copilot to reduce admin work, allowing teachers to focus on students. The Microsoft partnership ensures secure and ethical AI use, while teacher training focuses on prompt writing and effective tool adoption.
    6. Ma’aden uses Microsoft 365 Copilot to enhance productivity, saving up to 2,200 hours monthly. Tasks like drafting emails, creating documents and data analysis have become more efficient, helping Ma’aden achieve its growth goals.
    7. Marketing org mci group uses Microsoft 365 Copilot to enhance the use of AI and other technological advances to boost employee efficiency.
    8. Michelin deployed Microsoft 365 Copilot and a generative AI in-house chatbot based on Azure OpenAI Service called “Aurora” designed to help employees optimize work and team performance, boosting productivity tenfold.
    9. Raiffeisen Bank International built its own ChatGPT using Azure OpenAI Service to automate repetitive tasks like documenting intelligence and more rapidly summarize legal, regulation and banking documents.
    10. Sanabil Investments deployed Microsoft 365 Copilot to help employees reduce the time spent on manual everyday tasks that diverted focus from more strategic and valuable work. Within two months, approximately 70% of employees regularly used Copilot.
    11. Sensei rolled out Microsoft 365 to reduce the number of internal apps and better connect systems for easier collaboration, and is using Microsoft 365 Copilot to increase efficiency.
    12. Sikshana Foundation is working with Microsoft Research India to introduce an AI copilot for teachers that shortens preparation time for lessons from an hour or more to just minutes.
    13. The University of Hong Kong adopted Microsoft 365 Copilot to enhance productivity by automating administrative tasks and providing intelligent assistance, allowing faculty to focus more on teaching.

    1. Accenture and Avanade launched a Copilot business transformation practice, supported by Microsoft, and co-invested in new capabilities, solutions and training to help organizations securely and responsibly reinvent their business functions with generative and agentic AI and Copilot technologies.
    2. Access Holdings Plc adopted Microsoft 365 Copilot, integrating generative AI into daily tools and, as a result, writing code now takes two hours instead of eight, chatbots launch in 10 days instead of three months and presentations are prepared in 45 minutes instead of six hours.
    3. Adobe is connecting Adobe Experience Cloud workflows and insights with Microsoft 365 Copilot to deliver generative-AI powered capabilities that enable marketers to increase collaboration, efficiency and creativity.
    4. Amadeus empowers its teams to focus their time and skills on value-added tasks with Microsoft 365 Copilot, by summarizing email threads, chat or transcripts and summing up information from diverse sources.
    5. ANZ has invested in Microsoft 365 Copilot, GitHub Copilot and Copilot in Microsoft Edge to boost productivity and innovation across its workforce.
    6. Asahi Europe & International (AEI) has adopted Microsoft 365 Copilot, saving employees potentially 15% of time previously spent on administrative tasks.
    7. AXA developed AXA Secure GPT, a platform powered by Azure OpenAI Service that empowers employees to leverage the power of generative AI while targeting the highest level of data safety and responsible use of the tool.
    8. Axon Enterprise developed a new AI tool with Azure OpenAI Service called Draft One, resulting in an 82% decrease in time spent on reports, which freed up officers to engage more with their community.
    9. Aztec Group enhanced productivity and client experience by trialing Microsoft 365 Copilot with 300 staff, uncovering “unlimited” use cases and plans for a wider rollout.
    10. Bader Sultan & Bros. Co. W.L.L. implemented Microsoft 365 Copilot to enhance employee productivity and speed up customer response times.
    11. Bancolombia is using GitHub Copilot to empower its technical team, achieving a 30% increase in code generation, boosting automated application changes to an average of 18,000 per year, with a rate of 42 productive daily deployments.
    12. Bank of Queensland Group is using Microsoft 365 Copilot, with 70% of users saving two-and-a-half to five hours per week.
    13. BaptistCare Community Services is using Microsoft 365 Copilot to save employees time as they navigate workforce shortage challenges allowing them to focus more on the people they care for.
    14. Barnsley Council was recognized as “Double Council of the Year in 2023” for its implementation of Microsoft 365 Copilot, which modernized operations and reduced administrative tasks, leading to improved job satisfaction and increased creativity.
    15. BlackRock purchased more than 24,000 Microsoft 365 Copilot licenses spanning all employees, functions and locations, helping improve the Copilot experience, including codeveloping new features and functions.
    16. British Heart Foundation is testing Microsoft 365 Copilot and in its initial test, users estimate that Microsoft 365 Copilot could save them up to 30 minutes per day.
    17. Buckinghamshire Council deployed Microsoft 365 Copilot with staff reporting productivity improvements, quality enhancements and time savings which are enabling the different teams to do more with less.
    18. Campari Group adopted Microsoft 365 Copilot to help employees integrate it into their workflow, resulting in time savings of about two hours a week from the support of routine activities such as email management, meeting preparation, content creation and skill acquisition.
    19. Canadian Tire Corporation moved its data from on-premises systems to Microsoft Azure and built digital assistants using Azure OpenAI Service, and now more than 3,000 corporate employees save 30 to 60 minutes a day using its ChatCTC digital assistant.
    20. Capita is using GitHub Copilot for productivity improvements as well as improvements in developer satisfaction, recruitment and retention.
    21. Cathay leverages Microsoft 365 Copilot to streamline meetings and manage information more effectively, reducing time-consuming tasks and fostering creativity.
    22. CDW used Microsoft 365 Copilot to improve work quality for 88% of users, enabling 77% to complete tasks faster, and increasing productivity for 85% of users.
    23. Chi Mei Medical Center is lightening workloads for doctors, nurses and pharmacists with a generative AI assistant built on Azure OpenAI Service.
    24. Clifford Chance adopted Microsoft 365 Copilot to streamline tasks, automate processes and enhance collaboration. Lawyers use it to draft and manage emails and ensure compliance, allowing them to focus on complex legal work and improve productivity.
    25. DLA Piper chose Microsoft 365 Copilot to boost productivity for operational and administrative teams, saving up to 36 hours weekly on content generation and data analysis.
    26. Eaton adopted Microsoft 365 Copilot to automate the creation of 1,000 standard operating procedures to streamline customer service operations and improve data access across teams, cutting creation time from one hour to 10 minutes.
    27. E.ON is focused on Germany’s energy transition, leveraging Microsoft 365 Copilot to manage the complex grid in real-time, increasing productivity and efficiency for its workforce.
    28. Enerijisa Uretim has adopted Microsoft 365 Copilot to streamline meeting summaries, reformat documents and compile reports, enabling employees to concentrate on more strategic and fulfilling activities instead of spending six hours in meetings.
    29. EPAM is deploying Microsoft 365 Copilot to consolidate information and generate content and documents.
    30. Farm Credit Canada implemented Microsoft 365 Copilot which resulted in time savings on routine tasks for 78% of users, with 30% saving 30 to 60 minutes per week and 35% saving over an hour per week, allowing employees to focus on more value-added tasks.
    31. Finastra used Microsoft 365 Copilot to automate tasks, enhance content creation, improve analytics and personalize customer interactions, with employees citing a 20%-50% time savings.
    32. Four Agency Worldwide increased employee productivity using Microsoft 365 Copilot to generate ideas for creative work and support administrative-heavy processes, data analysis and report generation, allowing staff to focus on outreach and less time doing paperwork.
    33. Goodwill of Orange County developed an AI-powered app using Azure AI capabilities to help more people, including those with developmental, intellectual and physical disabilities, work in unfilled e-commerce positions.
    34. Harvey uses Azure OpenAI to simplify routine tasks across hundreds of law firms and legal teams, with one corporate lawyer saying he saved 10 hours of work per week.
    35. Honeywell employees are saving 92 minutes per week — that’s 74 hours a year! Disclaimer: Statistics are from an internal Honeywell survey of 5,000 employees where 611 employees responded.
    36. Insight employees using Copilot are seeing four hours of productivity gained per week from data summarization and content creation.
    37. Joos uses Microsoft 365 Copilot to grow its brand with worldwide collaboration by streamlining meetings, optimizing presentations and improving communications.
    38. Kantar is harnessing the power of Microsoft 365 Copilot by reducing costly, time-consuming IT processes and boosting productivity for employees.
    39. KMS Lighthouse enhanced its knowledge management platform with Microsoft Teams and Dynamics 365 integration, enabling users to leverage KMS Lighthouse without having to switch applications. And with Azure OpenAI Service, companies can create relevant content more quickly within the KMS Lighthouse application.
    40. KPMG Australia is using Microsoft Azure OpenAI Service, Azure AI Search and Microsoft Copilot 365 to perform advanced text analysis of dozens of client source documents to identify full or partial compliance, or noncompliance, in a fraction of the time required for manual assessments.
    41. LGT is launching Microsoft Copilot LGT to improve efficiency, showing users save an average of an hour a week even in the pilot phase.
    42. Localiza&Co, a leader in the mobility industry in Latin America, implemented Microsoft 365 Copilot to automate processes and improve efficiency, and reduced 8.3 working hours per employee per month.
    43. Lotte Hotels & Resorts has been creating a new work culture that allows employees to work more efficiently and focus on the nature of the work by adopting Microsoft Power Platform for automation.
    44. MAIRE is leveraging Microsoft 365 Copilot to automate routine tasks, saving over 800 working hours per month, freeing up engineers and professionals for strategic activities while supporting MAIRE’s green energy transition by reducing their carbon footprint.
    45. McDonald’s China chose Microsoft Azure AI, GitHub Copilot and Azure AI Search to transform its operations, resulting in a significant increase in AI adoption, consumption and retention from 2,000 to 30,000 employee transactions monthly.
    46. McKnight Foundation adopted Microsoft 365 Copilot for all staff, saving time, increasing productivity and freeing space to focus on strategic priorities.
    47. Medigold Health uses Azure OpenAI Service to significantly reduce the time that clinicians spend writing reports during their consultation and administrative time.
    48. Morula Health is using Microsoft 365 Copilot to enhance productivity, streamline medical writing tasks and ensure data security, ultimately improving efficiency and client satisfaction.
    49. Motor Oil Group is achieving remarkable efficiency gains by integrating Microsoft 365 Copilot into its workflows, with staff spending minutes on tasks that used to take weeks.
    50. Nagel-Group uses Azure OpenAI Service to help employees quickly access information which saves time, creates efficiency and transparency and leads to higher-quality answers overall.
    51. National Australia Bank is leveraging Microsoft 365 Copilot for daily productivity and data analysis and insights and Microsoft Copilot for Security to quickly analyze millions of security event logs and allow engineers to focus on more important areas.
    52. NFL Players Association integrated Azure AI Services and Azure App Service into their video review process, reducing review time by up to 73%, significantly increasing efficiency and enhancing player safety through consistent rule enforcement.
    53. O2 Czech Republic boosts productivity and streamlines meetings with Microsoft 365 Copilot, revolutionizing how information is shared and making automation a part of daily work.
    54. Onepoint developed a secure conversational agent based on Azure OpenAI which delivers productivity gains of between 10% and 15% across all business lines.
    55. Orange Group has over 40 use cases with Azure OpenAI Service and GitHub Copilot across business functions to support employees in their day-to-day tasks, enabling them to concentrate on higher value-added activities.
    56. Oxford University Hospitals NHS Foundation Trust implemented Microsoft 365 Copilot to improve staff report productivity by saving one to two hours a week, or simple formatting tasks down to a matter of seconds, enabling more resources to deliver frontline services.
    57. PA Consulting transformed its sales operations with Microsoft 365 Copilot, so its people can invest more time on the activities that have the biggest impact for clients and maximize the strategic value they provide.
    58. Petrobras used Azure OpenAI Service to create ChatPetrobras, which is streamlining workflows, reducing manual tasks and summarizing reports for its 110,000 employees.
    59. Petrochemical Industries Company automates work processes to save time with Microsoft 365 Copilot from weeks to days, hours to seconds.
    60. PIMCO built ChatGWM with Azure AI Studio, a comprehensive platform that provides the ability to ask questions, receive responses and verify answers all in one place, so teams can spend more time engaging clients and having deeper conversations.
    61. PKSHA Technology is optimizing their time on critical work by increasing efficiency in meeting preparations, data analytics and ideation with the help of Microsoft 365 Copilot.
    62. Providence has collaborated with Nuance and Microsoft to accelerate development and adoption of generative AI-powered applications, helping improve care quality and access, and reduce physician’s administrative workloads.
    63. RTI International adopted Microsoft 365 Copilot to gain productivity wherever possible, allowing staff to focus on their areas of expertise, delivering even better science-backed solutions for clients.
    64. SACE, an Italian finance and insurance firm, is using Microsoft 365 Copilot and Viva to boost productivity and unlock employee potential while enhancing overall well-being — and productivity improvement data from the first nine months of implementation shows a 23% increase.
    65. Sandvik Coromant is using Microsoft Copilot for Sales to drive efficiency and accuracy, shaving at least one minute off each transaction, allowing sellers and account managers to focus their expertise on responding to customers’ needs with analysis, creativity and adaptability.
    66. Sasfin Bank built a solution on Microsoft Azure that centralized 20,000 documents to analyze contract clauses and provide real-time snapshots, moving guesswork into data-driven decision-making.
    67. Scottish Water implemented Microsoft 365 Copilot reducing mundane tasks to a minimum, and thus freeing up time for employees to work on the more meaningful tasks.
    68. Shriners Children’s developed an AI platform allowing clinicians to easily and securely navigate patient data in a singular location, enhancing patient care, and improving the efficiency of their healthcare services.
    69. Siemens is leveraging Azure OpenAI Service to improve efficiency, cut downtime and address labor shortages.
    70. Softchoice employees are experiencing firsthand how Microsoft 365 Copilot can transform daily workflows, realizing productivity gains of 97% reduction in time spent summarizing technical meetings and up to 70% less time spent on content creation.
    71. Syensqo utilized Microsoft’s Azure OpenAI Service to develop a custom AI chatbot in three months, which improved their internal data management, decision-making and overall efficiency.
    72. Teladoc Health uses Microsoft 365 Copilot to revolutionize its telehealth operations, automating routine tasks, boosting efficiency and increasing productivity.
    73. Telstra developed two cutting-edge generative AI tools based on Microsoft Azure OpenAI Service: 90% of employees are using the One Sentence Summary tool which resulted in 20% less follow-up customer contact and 84% of customer service agents using the Ask Telstra solution.
    74. Topsoe achieved 85% AI adoption among office employees in seven months, significantly enhancing productivity and business processes.
    75. Torfaen County Borough Council utilized Microsoft 365 Copilot to streamline back-office processes, resulting in significant time savings and enhanced productivity for both business and children’s services teams, with further rollouts planned.
    76. Trace3 leveraged Microsoft 365 Copilot to streamline and enhance processes across the business and with clients, such as reducing the time it takes HR recruiting managers to respond to applicants within a couple of days instead of several weeks.
    77. Unilever is reinventing their marketing process with Copilot, saving time on briefing tasks, automatically pulling in relevant market data, content and insights to accelerate campaign launches.
    78. Uniper SE implemented Microsoft 365 Copilot to reduce time spent on manual and repetitive tasks, and help workers focus on more pressing work, such as developing enhanced solutions to speed up the energy transition.
    79. Unum Group built a custom AI application to search 1.3 terabytes of data with 95% accuracy using Azure OpenAI Service.
    80. Virgin Atlantic adopted Microsoft 365 Copilot and GitHub Copilot and is seeing real business benefits, including productivity improvements, enabling new ways of working.
    81. Visier built a generative AI assistant that leverages Azure AI and Azure OpenAI Services to deliver workforce analytics and actionable insights for more than 50,000 customers.
    82. Virtual Dental Care developed an AI application Smart Scan that leverages Microsoft Azure to reduce paperwork for mobile dental clinics in schools by 75% and frees dentists to devote more time to patient care.
    83. Zakladni Skola As Hlavkova adopted Microsoft 365 Copilot and saw a 60% improvement in handling administrative documents, decreased lesson preparation from hours to few minutes, increased inclusivity and enhanced communication with students and parents.

    Reinventing customer engagement

    We’ve seen great examples of how generative AI can automate content creation, ensuring there’s fresh and engaging materials ready to go. It personalizes customer experiences by crunching the numbers, boosting conversion rates. It makes operations smoother, helping teams launch campaigns faster. Plus, it drives innovation, crafting experiences that delight customers while lightening the load for staff. Embracing generative AI is key for organizations wanting to reinvent customer engagements, stay ahead of the game and drive both innovation and efficiency.

    New Stories:

    1. Aditya Birla Capital built the SimpliFi chatbot on Microsoft Azure to simplify financial services information and offers through intelligent search and proactive nudging with minimum latency and high scalability.
    2. AIA is using Copilot in Dynamics 365 Customer Service to allow customer service representatives to handle more cases in less time by automating time-consuming tasks like drafting customer emails and summarizing lengthy chats and case histories.
    3. Aydem Energy and Microsoft partner Softtech used Azure OpenAI Service to create an AI assistant for WhatsApp, providing customers with real-time updates and handling meter readings, bill checks and claims.
    4. The City of Buenos Aires developed Boti with ChatGPT using Azure OpenAI Service to manage multiple service channels and personalize key services for residents and tourists. The chatbot centralizes data, enables natural language interactions and scales to handle high demands, managing 2 million queries per month without human intervention, alleviating the operational burden by 50%, improving the citizen experience and increasing efficiency.
    5. de Alliantie built a generative AI chatbot using Azure OpenAI to digest information in their online knowledge base so staff can get accurate answers in seconds. Another Azure AI-based solution transcribes and summarizes calls, then categorizes them by theme.
    6. Haceb created a virtual technical support assistant with generative AI, helping on-the-ground technicians troubleshoot, diagnose and resolve product issues faster and more efficiently.
    7. Lloyds Banking Group developed the Branch Translation App using Microsoft Power Apps and Azure AI services with a goal to improve communication with non-English speaking customers and the innovation enhanced service delivery, receiving positive feedback from employees and customers alike.
    8. Staffbase provides its clients with Staffbase Companion, which helps it enhance internal communication with quick content generation, summarization, translation and future capabilities — and remain confident in data protection.
    9. Tekion built Automative Retail Cloud, a unified, cloud-native platform that uses generative AI to analyze communications, extract insights and provide customer-specific recommendations for sales agents.
    10. Welcome Account created a banking application with a conversational agent based on Azure OpenAI Service, in order to help people manage their finances and administrative procedures. This multilingual agent already assists no less than a thousand refugees on a daily basis.
    11. UBS is using Azure AI solutions, including Azure AI Search and Azure OpenAI Service, to power “Smart Assistants” that streamline content access and provide real-time information to Client Advisors, boosting efficiency and client engagement.
    12. Virbe enables businesses to interact with customers through AI-powered avatars, and with Azure AI services like Azure OpenAI Service and Azure AI Search, Virbe enhanced its AI avatars and simplified engagement with enterprise customers — and customers are seeing up to a 10x increase in leads.

    ————————————————————————————————————————–

    1. Absa has adopted Microsoft Copilot to streamline various business processes, saving several hours on administrative tasks each day.
    2. Adobe leverages Microsoft Azure to streamline the customer experience, harnessing the power of the connected cloud services and creating a synergy that drives AI transformation across industries.
    3. Acentra Health developed Medscribe, a web application that uses Azure OpenAI Service to generate draft letters in a secure, HIPPA-compliant enclave that responds to customer appeals for healthcare services within 24 hours, reducing the time spent on each appeal letter by 50%.
    4. Air India leveraged Azure OpenAI Service to develop a virtual assistant that has handled nearly 4 million customer queries with full automation, significantly enhancing customer experience and avoiding millions of dollars in customer support costs.
    5. Alaska Airlines is using Microsoft Azure, Microsoft Defender, and GitHub to ensure its passengers have a seamless journey from ticket purchase to baggage pickup and started leveraging Azure OpenAI Service to unlock more business value for its customer care and contact centers.
    6. Ally Financial is using Azure OpenAI Service to reduce manual tasks for its customer service associates, freeing up time for them to engage with customers.
    7. BMW Group optimizes the customer experience connecting 13 million active users to their vehicles with the MyBMW app on Azure, which supports 450 million daily requests and 3.2TB data processing.
    8. Boyner has tripled its e-commerce performance using Microsoft Azure, seeing a rise in customer satisfaction, engagement, conversion rate and revenue.
    9. Bradesco Bank integrated Microsoft Azure to its virtual assistant, BIA, resulting in reduced response time from days to hours, improving operational efficiency and client satisfaction.
    10. Capgemini Mexico integrated GitHub Copilot to support scalable AI implementations which has led to improved customer experiences and increased efficiency.
    11. Capitec Bank uses Azure OpenAI Service and Microsoft 365 Copilot, enabling their AI-powered chatbot to assist customer service consultants in accessing product information more efficiently, saving significant time for employees each week.
    12. Cdiscount is leveraging GitHub Copilot and Azure OpenAI Service to enhance developer efficiency, optimize product sheet categorization and improve customer satisfaction.
    13. Cemex used Azure OpenAI Service to launch Technical Xpert, an AI tool used by sales agents to provide instant access to comprehensive product and customer solution information, significantly reducing search time by 80%.
    14. Chanel elevated their client experience and improved employee efficiency by leveraging Microsoft Fabric and Azure OpenAI Service for real-time translations and quality monitoring.
    15. City of Burlington created two AI-powered solutions: MyFiles system using Microsoft Power Platform for building permits, and CoBy, a 24/7 customer support assistant using Microsoft Copilot Studio.
    16. City of Madrid created an AI virtual assistant with Microsoft Azure OpenAI Service offering tourists accurate, real-time information and personalized responses in 95-plus languages.
    17. Cognizant is making performance management more effective and meaningful with Microsoft Azure Machine Learning to help clients across industries envision, build, and run innovative digital enterprises.
    18. Coles Group has leveraged Microsoft Azure to enhance its digital presence and improve customer engagement, rolling out new applications to its stores six times faster without disrupting workloads.
    19. Commercial Bank of Dubai used Microsoft Azure to upgrade its application infrastructure, improving transaction security and speed so individual customers can now open an account and start banking in about two minutes.
    20. Cradle Fund, dedicated to nurturing startups in Malaysia, introduced an AI-driven chatbot to boost user interaction and increase public engagement. User engagement quadrupled while resolution time was reduced from two days to a few clicks. Cradle also decreased customer service costs by 35%, increased international interactions by 40% and increased daily average visits 10-fold.
    21. Doctolib, a leading eHealth company in France, leverages Microsoft technology to develop an AI-powered medical assistant, integrating both Azure OpenAI Service and Mistral Large on Azure.
    22. Docusign used Azure AI to develop its Intelligent Agreement Management (IAM) platform, which supports millions of workflows, reducing contract processing times and enhancing customer satisfaction with advanced AI-powered analytics.
    23. Dubai Electricity and Water Authority has significantly improved productivity and customer satisfaction by integrating multiple Microsoft AI solutions, reducing task completion time from days to hours and achieving a 98% customer happiness rate.
    24. Elcome uses Microsoft 365 Copilot to improve the customer experience, reducing response times from 24 hours to eight hours.
    25. elunic developed shopfloor.GPT based on Azure OpenAI leading to increased productivity for customers saving 15 minutes per request.
    26. Estée Lauder Companies is leveraging Azure OpenAI Service to create closer consumer connections and increase speed to market with local relevancy.
    27. First National Bank (FNB) is using Microsoft Copilot for Sales to help bankers create professional, thoughtful emails in 13 native South African languages, to enhance customer interactions, streamline communications and reinforce its commitment to innovation and customer service.
    28. Flora Food Group migrated to Microsoft Fabric to offer more detailed and timely insights to its customers, enhancing service delivery and customer satisfaction.
    29. Groupama deployed a virtual assistant using Azure OpenAI Service that delivers reliable, verified and verifiable information, and boasts an 80% success rate.
    30. Holland America Line developed a virtual agent using Microsoft Copilot Studio that acts as a digital concierge on their website to support new and existing customers and travel advisors, which has achieved a strong resolution rate and is currently handling thousands of conversations per week.
    31. International University of Applied Sciences (IU) adopted Azure OpenAI Service to revolutionize learning with a personalized study assistant that can interact with each student just like a human would.
    32. Investec is using Microsoft 365 Copilot for Sales to enhance the bank’s client relationships, estimating saving approximately 200 hours annually ultimately boosting sales productivity and delivering personalized, seamless customer experience.
    33. Jato Dynamics used Azure OpenAI Service to automate content generation, helping dealerships save approximately 32 hours each month.
    34. Kenya Red Cross worked with Pathways Technologies to develop a mental health chatbot in Azure AI.
    35. LALIGA is delivering a seamless fan experience and AI insights with Azure Arc, using AI in Azure for optimizing match scheduling and other key operations.
    36. Legrand used Azure OpenAI Service to reduce the time to generate product data by 60% and improve customer support interactions with fast, accurate information.
    37. Linum is using Microsoft Azure to train their text-to-video models faster and more efficiently without losing performance or wasting resources.
    38. Lumen Technologies is redefining customer success and sales processes through the strategic use of Microsoft 365 Copilot, enhancing productivity, sales and customer service in the global communications sector.
    39. Mars Science & Diagnostics used the Azure AI catalog to build generative AI apps to enhance accuracy and extract data insights quickly, helping pets with critical, undiagnosed conditions receive the care they require faster.
    40. McKinsey & Company is creating an agent to reduce client onboarding process by reducing lead time by 90% and administrative work by 30%.
    41. Meesho leveraged Microsoft’s Azure OpenAI Service and GitHub Copilot to enhance customer service and software development, resulting in a 25% increase in customer satisfaction scores and 40% more traffic on customer service queries.
    42. Milpark Education integrated Microsoft Copilot and Copilot Studio and in just four months, improved efficiency and accuracy of student support, decreasing the average resolution time by 50% and escalation time by more than 30%.
    43. National Basketball Association is using Azure OpenAI Service to speed up the time to market, helping fans connect with the league with personalized, localized insights to enhance the fan experience.
    44. NC Fusion chose a comprehensive Microsoft solution to make marketing engagement activities easier and accurately target the best audience segments.
    45. Medgate, a telehealth subsidiary of Otto Group developed a medical Copilot powered by Azure OpenAI which summarizes consultations, supports triage and provides real-time translations.
    46. Orbital Witness embraced the use of large language models (LLMs) in Azure OpenAI to build its innovative AI Agent application, Orbital Copilot, which can save legal teams 70 percent of the time it takes to conduct property diligence work.
    47. Pacific Gas & Electric built a chatbot using Microsoft Copilot Studio that saves $1.1 million annually on helpdesk support.
    48. Parloa took a “voice-first” approach and created an enterprise-grade AI Agent Management platform to automate customer interactions across phone, chat and messaging apps.
    49. Pockyt is using GitHub Copilot and anticipates a 500% increase in productivity in the medium to long term as they continue adapting AI and fine-tuning their software development life cycle.
    50. South Australia Department for Education launched an AI-powered educational chatbot to help safeguard students from harmful content while introducing responsible AI to the classrooms.
    51. Sync Labs is using Microsoft Azure to create AI-driven solutions that have led to a remarkable 30x increase in revenue and a 100x expansion of their customer base.
    52. Syndigo is using Azure to accelerate digital commerce for its customers by more than 40% and expand its customer base.
    53. Telkomsel created a virtual assistant with Azure OpenAI Service, resulting in a leap in customer self-service interactions from 19% to 45%, and call volume dropped from 8,000 calls to 1,000 calls a day.
    54. Torrens University chose to use Azure OpenAI to uplift its online learning experience, saving 20,000 hours and $2.4 million in time and resources.
    55. Trusting Social integrated Microsoft Azure services to launch AI-driven agents that are changing how banks function and transforming their customer’s banking experience.
    56. University of California, Berkeley used Azure OpenAI Service to deploy a custom AI chatbot that supports student learning and helps students with complex coursework.
    57. University of Sydney created a self-serve AI platform powered by Azure OpenAI Service, to enable faculty to build custom chatbots for enhancing student onboarding, feedback, career simulation and more.
    58. Van Lanschot Kempen is using Microsoft 365 Copilot to reduce the time needed for daily tasks, freeing up time to invest in that crucial personal connection.
    59. Virgin Money built an award-winning virtual assistant using Copilot Studio to help build customers’ confidence in their digital products and services.
    60. VOCALLS automates over 50 million interactions per year, resulting in a 78% reduction in average handling time aside from a 120% increase in answered calls.
    61. Vodafone Group is leveraging Microsoft’s AI solutions, including Azure AI Studio, OpenAI Service, Copilot and AI Search, to achieve a 70% resolution rate for customer inquiries through digital channels and reduce call times by at least one minute.
    62. Walmart is using Azure OpenAI Service to deliver a helpful and intuitive browsing experience for customers designed to serve up a curated list of the personalized items a shopper is looking for.
    63. Weights & Biases created a platform which runs on Microsoft Azure that allows developers to keep records, log successes and failures and automate manual tasks.
    64. World2Meet is providing better customer service and operations with a new virtual assistant powered by Microsoft Azure.
    65. Xavier College is modernizing its student information systems on Microsoft Dynamics 365 and Microsoft Azure to unlock powerful insights, fostering innovation and data-driven decision making.
    66. Zavarovalnica Triglav implemented Microsoft Dynamics 365 and Azure OpenAI Service to streamline its operations with automated responses and smart rerouting of customer enquiries.
    67. Zurich Insurance Group used Azure OpenAI Service to develop advanced AI applications that led to more accurate and efficient risk assessment evaluations, accelerating the underwriting process, reducing turnaround times and increasing customer satisfaction.

    Reshaping business process

    Transforming operations is another way generative AI is encouraging innovation and improving efficiency across various business functions. In marketing, it can create personalized content to truly engage different audiences. For supply chain management, it can predict market trends so companies can optimize their inventory levels. Human resources departments can speed up the hiring process, while financial services can use it for fraud detection and risk assessments. With generative AI, companies are not just refining their current processes, they’re also discovering exciting new growth opportunities.

    New Stories:

    1. Bank of Queensland is modernizing its operations with Azure, Microsoft 365 and Microsoft 365 Copilot, using AI to optimize business processes such as creating marketing content, building reports and plans and drafting HR content.
    2. Document360 created an AI-powered knowledge base and service platform for companies to create, manage and publish online documentation, including product manuals, SOPs and wikis.
    3. Eduvos is simplifying the student enrollment experience with Microsoft Azure and Dynamics 365, reducing the time from 90 days to nearly instantaneous and associated costs by 90%.
    4. Emirates Global Aluminum (EGA) uses Azure Local to support its digital manufacturing platform, including support for safety-critical applications that use AI. Through its hybrid Azure environment, EGA has achieved 10 to 13 times faster AI response time and 86% cost savings for AI image and video use cases.
    5. Hellenic Cadastre built a system that reads and categorizes property contracts, applies legal rules and provides assessments for approval using Azure OpenAI Service. Today, property transaction assessments take less than 10 minutes instead of hours, reducing costs from 15 euros to 0.11 euros per assessment. The system also enhanced property owners’ legal security and boosted the Greek economy by enabling transactions to be completed sooner.
    6. Startup legal-i is using AI to analyze unstructured data and help expensive insurance specialists make better decisions faster — speeding up healthcare and insurance processes and improving the accuracy of outcomes.
    7. Publishing company SHUEISHA Inc. is using Microsoft Security Copilot to enable faster incident response, boosting the confidence and effectiveness of cybersecurity personnel.
    8. thyssencrupp is using the Siemens Industrial Copilot, built on Azure OpenAI Service, to address a skilled labor gap while revolutionizing how it programs and operates machinery.
    9. U.S. AutoForce implemented Dynamics 365 Supply Chain Management to centralize warehouse data, connect processes and improve operational efficiency while using Microsoft Copilot for Finance to automate monthly reconciliations.

    ————————————————————————————————————————–

    1. ABB Group integrated Azure OpenAI Service into their Genix Copilot platform enabling customers to achieve up to 30% savings in operations and maintenance, 20% improvement in energy and emission optimization and an 80% reduction in service calls.
    2. Accelleron used Microsoft Power Platform to support numerous business applications and simplify processes for service agents and employees, resulting in the onboard of new agents in 30 minutes, compared to two days for other solutions.
    3. Accenture developed an AI-powered financial advisor that leverages RISE with SAP on Microsoft Azure to enhance their infrastructure and integrate financial data.
    4. Atomicwork leverages Azure OpenAI to bring together three power capabilities: a conversational assistant, a modern service management system and a workflow automation platform.
    5. Blink Ops fully embraced generative AI to build the world’s first Security Automation Copilot with more than 8,000 automated workflows to help any Security/IT task through prompts.
    6. Chalhoub Group is using Microsoft Fabric to modernize its data analytics and streamline its data sources into one platform, increasing agility, enhancing analytics and accelerating processes.
    7. Cineplex is developing innovative automation solutions for finance, guest services and other departments, saving the company over 30,000 hours a year in manual processing time.
    8. ClearBank moved its services to Microsoft Azure to gain scalability and efficiency, pushing out 183% more monthly system releases, gaining both scalability and efficiency.
    9. Danske Statsbaner increases productivity up to 30% with help from Microsoft AI solutions.
    10. Dentsu implemented Microsoft Azure AI Foundry and Azure OpenAI Service to build a predictive analytics copilot that supports media insights, cutting analysis time by 80% and overall time to insight by 90%, reducing analysis costs.
    11. Dow implemented Microsoft 365 Copilot to empower teams with AI-driven insights and streamline essential workflows by automating tasks across departments, saving millions of dollars on shipping operations in the first year.
    12. Eastman implemented Microsoft Copilot for Security realizing the benefits of accelerated upskilling, step-by-step guidance for response and faster threat remediation.
    13. Fast Shop migrated to Microsoft Azure creating a self-service culture of access to data, eliminating delays, reducing costs and increasing leadership satisfaction with data while providing more agility in reporting.
    14. Florida Crystals adopted a value-added solution across Microsoft products including Microsoft 365 Copilot to reduce telecom expenses and automate industrial process controls.
    15. GHD is reinventing the RFP process in construction and engineering with Microsoft 365 Copilot.
    16. GovDash is a SaaS platform that leverages artificial intelligence to streamline the entire business development life cycle for government contracting companies using Azure OpenAI.
    17. Grupo Bimbo is deploying Microsoft’s industrial AI technologies to modernize its manufacturing processes, optimizing production and reducing downtime, driving significant cost savings, and empowering global innovation.
    18. Insight Canada implemented Microsoft 365 Copilot to streamline business operations, with 93% of users realizing productivity gains in functions including sales, finance and human resources.
    19. Intesa Sanpaolo Group enhanced its cybersecurity with AI-enabled Microsoft Sentinel and Microsoft Copilot for Security, resulting in faster threat detection, increased productivity and reduced storage costs.
    20. Kaya deployed a custom implementation of Microsoft Dynamics 365 and Power BI to modernize its supply chain, leading to enhanced visibility, improved planning and streamlined inter-department operations.
    21. Lenovo leveraged Dynamics 365 Customer Service to rapidly manage customer inquiries by streamlining repetitive tasks, boosted agent productivity by 15%, reduced handling time by 20% and reached record-high customer satisfaction.
    22. Lionbridge Technologies, LLC is using Microsoft Azure and Azure OpenAI Service to accelerate its delivery times and improve quality, reducing project turnaround times by up to 30%.
    23. LTIMindtree integrated Microsoft Copilot for Security, offering automated incident response, integrated threat intelligence and advanced threat analysis.
    24. Mania de Churrasco used Microsoft Azure, Power Platform and Microsoft 365 to achieve high efficiency, security and scalability in its operations, in addition to improving its data intelligence, which indirectly participated in a 20% increase in sales year on year.
    25. National Bank of Greece built an Azure-powered Document AI solution to transform its document processing, improving the bank’s accuracy to 90%.
    26. Nest Bank has revolutionized its operations by integrating Microsoft 365 Copilot and Azure OpenAI Service, resulting in doubled sales and increased daily transactions from 60,000 to 80,000, showcasing the transformative impact of generative AI in the financial sector.
    27. Network Rail modernized their data analytics solution with Microsoft Azure, helping engineers understand data 50% faster than before and improve efficiency, passenger experiences and safety — all while saving costs.
    28. Nsure developed an AI-powered agent that uses Copilot Studio and Power Automate to reduce manual processing time by 60% while also reducing associated costs by 50%.
    29. Oncoclínicas implemented Microsoft Azure to transform its entire data ecosystem with a web portal and mobile application that performs all image processing and storage.
    30. Operation Smile used Azure OpenAI Service, Fabric and Power Apps to eliminate manual data entry, resulting in reduced translation errors by about 90% and the time required for completing reports from four to five hours to just 15 to 20 minutes.
    31. Pacifico Seguros has adopted Microsoft Copilot for Security to optimize its security operations and anticipate and neutralize threats more efficiently and effectively.
    32. Parexel adopted Azure Databricks and Microsoft Power BI, achieving an 85% reduction in data engineering tooling costs, a 30% increase in staff efficiency and a 70% reduction in time to market for data product delivery.
    33. Paysafe used Microsoft 365 Copilot to streamline meetings, information management and document creation, addressing language barriers, eliminating time-consuming tasks and boosting creativity along the way.
    34. Planted is integrating Azure OpenAI to manage everyday tasks more efficiently and facilitate the search for information for innovative process development.
    35. Presidio realized dramatic productivity gains saving 1,200 hours per month on average for the employees using Microsoft 365 Copilot and created 70 new business opportunities.
    36. Qatar Charity used Copilot Studio to increase its call center efficiency, reducing average handle time by 30%, increased customer satisfaction by 25%, and achieved a 40% reduction in IT maintenance costs.
    37. Saphyre uses Microsoft Azure and AI to provide an intelligent cloud-based solution that automates and streamlines financial trading workflows around client and counterparty life cycle management, reducing manual efforts by 75%.
    38. StarKist Foods used Azure to effectively unite production and demand processes with finance, reducing the planning cycle from 16 hours to less than one.
    39. Swiss International Air Lines migrated and modernized with Microsoft Azure, achieving up to 30% cost savings, a remarkable boost in platform stability along with enhanced security visibility.
    40. ZEISS Group uses Microsoft Fabric to create a secure and trusted data supply chain that can be shared effortlessly across a range of business units.
    41. ZF Group builds manufacturing efficiency with over 25,000 apps and 37,000 unique active users on Power Platform.

    Bending the curve on innovation

    Generative AI is revolutionizing innovation by speeding up creative processes and product development. It’s helping companies come up with new ideas, design prototypes, and iterate quickly, cutting down the time it takes to get to market. In the automotive industry, it’s designing more efficient vehicles, while in pharmaceuticals, it’s crafting new drug molecules, slashing years off R&D times. In education, it transforms how students learn and achieve their goals. Here are more examples of how companies are embracing generative AI to shape the future of innovation.

    New Stories:

    1. Agricultural Development Trust (ADT) of Baramati is analyzing water, weather, nutrient, pH data and more with AI to increase crop yields in India.
    2. DrumBeat.AI is using Microsoft AI services to predict, identify and treat ear diseases in communities that are both rural and remote, helping to prevent hearing loss among Indigenous communities in Australia.
    3. Dynamic Health Systems created its VitruCare365® platform on the Microsoft Cloud for healthcare technologies to enable motivational care planning. Built on Microsoft Azure, FHIR (Fast Healthcare Interoperability Resources) and Dynamics 365, it provides personalized apps powered by Azure OpenAI Service to each patient and is deployed as an extension to the Microsoft 365 tools clinicians use every day.
    4. Cities can use Esri’s ArcGIS geospatial platform to create environmental digital twins that simulate heavy rainfall and apply hot spot analysis to highlight flooding. Adding Azure AI to the geospatial digital twin will reveal insights in impossible amounts of data.
    5. Digital employment agency Gojob developed Aglae, a virtual assistant based on Azure OpenAI Service, to pre-qualify candidates within 15 minutes, enabling recruiters to achieve record employment placement rates.
    6. Institut Curie and Microsoft partner Witivio developed Copilot for Researcher, an agent that can help researchers with some of the administrative tasks in their jobs so they have more time to spend on actual new ideas in the fight against cancer.
    7. NASA created Earth Copilot to transform how people interact with Earth’s data.
    8. Parity is helping women athletes use data and AI to help improve their well-being, performance and careers.
    9. Petbarn created “PetAI” using Azure OpenAI Service, Azure AI Search and Azure App Service to provide Australian pet owners highly personalized advice and product recommendations.
    10. Project Guacamaya is using daily satellite images and various AI models tailored to the Amazon ecosystem to help prevent its deforestation, allowing for quicker action to be taken in at-risk areas.
    11. Properstar developed a solution to simplify the analysis of unstructured real estate data and create a dynamic, AI-powered filtering system that provides more nuanced search results.
    12. RadarFit is using generative AI and a unique gamification strategy to encourage healthy habits in Brazil, with a comprehensive health and wellness program aimed at helping companies reduce chronic disease rates.
    13. SEDUC is using Microsoft 365 Copilot for administrative tasks — such as generating legal documents and handling administrative inquiries — and has expanded to include AI usage with students and teachers, including personalized learning to cater to individual student needs and help them recover from learning losses during the pandemic.
    14. Indonesia’s Universitas Terbuka used Microsoft Azure OpenAI services and Azure AI Foundry to build an AI tutor that delivers accurate, curriculum-aligned responses and streamlines student assessment. The tutor currently supports 500 classes and some 100,000 students.
    15. World Traveler is using AI including Microsoft Reading Progress and Microsoft Immersive Reader to help teachers reach its globally and educationally diverse students with personalized learning experiences.
    16. South Korean startup Wrtn Technologies brings ATI close to people, with a “superapp” that compiles an array of AI use cases and services, but localized for Korean users to integrate AI into their everyday lives.

    ————————————————————————————————————————–

    1. Air India has incorporated Microsoft 365 Copilot into multiple departments, unlocking a new realm of operational insights that not only provides critical data on flight punctuality and operational hurdles, but also empowers proactive, collaborative decision making.
    2. Agnostic Intelligencedeployed Azure OpenAI Service to eliminate time-consuming tasks, saving users up to 80% of their time, and enabling IT managers to focus on innovation and quality assurance.
    3. Albert Heijn is using Azure OpenAI for everything from customer personalization to demand forecast and food waste projects, making it easier for its customers to change their lifestyle.
    4. Amgen is using Microsoft 365 Copilot to boost productivity and has the potential to speed up drug development and support advancements in their business processes.
    5. APEC leverages Microsoft Azure and deep neural network algorithms to develop an app that enables healthcare providers to capture retinal images, increasing the accuracy to identify Retinopathy of Prematurity (RoP) to 90%.
    6. ASOS is using Azure AI Studio to help customers discover new looks with genuine shopping insights, personalized conversations, naturalism and even humor to enliven the shopping journey.
    7. Auburn University is incorporating Microsoft Copilot to promote AI literacy, accessibility and collaboration, with the aim to expand educational and economic opportunities for its entire academic community with AI-centric tools.
    8. B3 launched an AI assistant using Azure OpenAI Service that aids 10,000 users a day to answer Brazilians’ questions about how to start investing.
    9. Basecamp Research aims to build the world’s largest database of national biodiversity and apply AI and machine learning to advance bioscience.
    10. Bayer is using Microsoft Copilot to contribute to feeding a growing global population and helping people lead healthier, disease-free lives.
    11. BMW AG implemented Azure AI to develop a mobile data recorder copilot for faster data management helping engineers reduce the lead time for insights from days to hours or sometimes minutes.
    12. Brembo leveraged Azure OpenAI to develop ALCHEMIX, a solution to generate innovative compounds for its brake pads, drastically reducing the development time of new compounds from days to mere minutes.
    13. Canary Speech can now train new vocal models in as little as two months and handle millions of transactions per month with Microsoft Azure.
    14. CapitaLand simplified internal processes increasing efficiency to more than 10,000 man-days saved per year and deployed Azure OpenAI Service to build the first AI hospitality chatbot for its lodging business.
    15. Cassidy is using Azure OpenAI Service to enhance efficiency across various industries, supporting over 10,000 companies.
    16. Coca-Cola is implementing Azure OpenAI Service to develop innovative generative AI use cases across various business functions, including testing how Microsoft 365 Copilot could help improve workplace productivity.
    17. Denso is developing “human-like” robots using Azure OpenAI Service as the brain to help robots and humans work together through dialogue.
    18. eFishery is using Azure OpenAI for farmers to get the data and insights on fish and shrimp farming, including more precise feeding and water quality monitoring.
    19. EY developed an application that automatically matches and clears incoming payments in SAP, resulting in an increase from 30% to 80% in automatically cleared payments and 95% matched payments, with estimated annual time savings of 230,000 hours globally.
    20. EY worked with Microsoft to make Azure AI Foundry more inclusive for all, serving the 20% of the global workforce identifying as neurodivergent.
    21. FIDO is using Azure OpenAI Service to develop an AI tool that uses sound to pinpoint leaky pipes, saving precious drinking water.
    22. Georgia Tech is using Azure OpenAI Service to enhance the electric vehicle (EV) charging infrastructure, achieving rapid data classification and predictive modeling, highlighting the reliability of networked chargers over non-networked ones.
    23. GigXR developed a solution to create the intelligence for specific AI patients using Microsoft Azure OpenAI Service and other Azure services.
    24. GoTo Group is significantly enhancing productivity and code quality across its engineering teams by adopting GitHub Copilot, saving over seven hours per week and achieved a 30% code acceptance rate.
    25. GovTech used Microsoft Azure OpenAI Service to create LaunchPad, sparking more than 400 ideas and 20 prototypes, laying the foundation for the government to harness the power of generative AI.
    26. H&R Block is using Azure AI Studio and Azure OpenAI Service to build a new solution that provides real-time, reliable tax filing assistance.
    27. Haut.AI provides skin care companies and retailers with customizable, AI-based skin diagnostic tools developed with the help of Microsoft AI.
    28. Helfie is building a solution that caters to healthcare providers who can arm their patients with an application to more quickly and accurately access the care they need.
    29. Hitachi will implement Azure Open AI Service, Microsoft 365 Copilot and GitHub Copilot to create innovative solutions for the energy, mobility and other industries.
    30. Icertis is providing AI-based tools that will recognize contract language and then build algorithms to automatically choose the right approach based on the content of the contract.
    31. Iconem leveraged AI-generated imagery to process and analyze a vast amount of photogrammetry data used to create the 3D digital twin of St. Peter’s Basilica, allowing visitors to explore every intricate detail from anywhere in the world.
    32. ITOCHU is using Azure OpenAI Service and Azure AI Studio to evolve its data analytics dashboard into a service that provides immediate recommendations by automatically creating evidence-based product proposals.
    33. IU International University of Applied Sciences (IU) is using the power of Azure OpenAI Service to develop Syntea, an AI avatar integrated into Microsoft Teams and Microsoft 365 Copilot, making learning more personalized, autonomous and flexible.
    34. Khan Academy has partnered with Microsoft to bring time-saving and lesson-enhancing AI tools to millions of educators.
    35. Lufthansa Group developed an animated 3D avatar called Digital Hangar to help guide passengers from initial travel inspiration to flight booking through an exchange with an Avatar in natural language.
    36. Mia Labs implemented Azure OpenAI to produce and protect its conversational AI virtual assistant Mia that provides fast support from investors, along with the sophisticated security posture and threat protection capabilities for AI workloads.
    37. Mitsubishi Heavy Industries is using Azure OpenAI Service to help accelerate digital innovation in power plants.
    38. Molslinjen has created an AI analytics toolbox that has reduced fuel emissions, improved customer satisfaction and brought in millions of additional revenue.
    39. New Sun Road implemented AI into a local controller for energy systems to balance the supply, storage and use requirements. This optimized loads to accelerate the deployment of renewable energy for local clean power for communities.
    40. Novo Nordisk recently published initial results with predictive AI models for advanced risk detection in cardiovascular diseases, including an algorithm that can predict patients’ cardiovascular risk better than the best clinical standards.
    41. Ontada implemented Azure AI and Azure OpenAI Service to target nearly 100 critical oncology data elements across 39 cancer types and now accesses an estimated 70% of previously unanalyzed or unused information, accelerating its life science product development, speeding up time to market from months to just one week.
    42. Paige.AI is using AI and Microsoft Azure to accelerate cancer diagnoses with data from millions of images.
    43. Pets at Home created an agent to help its retail fraud detection team investigate suspicious transactions.
    44. Plan Heal is using Microsoft AI to create solutions that enable patients to monitor and report health metrics so care providers can better serve them.
    45. Pacific Northwest National Laboratory (PNNL) is testing a new battery material that was found in a matter of weeks, not years, as part of a collaboration with Microsoft.
    46. Rijksmuseum is harnessing the power of Copilot to make art accessible at scale by joining forces with Microsoft to improve and expand the art experience for blind and low-vision community members.
    47. Royal National Institute of Blind People is using Azure AI services to develop an AI-based solution that quickly and accurately converts letters to braille, audio, and large print formats.
    48. Schneider Electric provides productivity-enhancing and energy efficiency solutions and is using a whole suite of AI tools to hasten its own innovation and that of its customers.
    49. SPAR ICS created an award-winning, AI-enabled demand forecasting system achieving 90% inventory prediction accuracy.
    50. SustainCERT deployed GenAI and machine learning for automated data verification, extraction from documents and to accelerate auditing processes to enable verifying the impacts and credibility of carbon credits.
    51. Suzuki Motor Corporation is adopting Azure OpenAI Service for data security, driving company-wide use with five multipurpose apps.
    52. Tecnológico de Monterrey created a generative AI-powered ecosystem built on Azure OpenAI Service with the goal to personalize education based on the students’ needs, improve the learning process, boost teachers’ creativity and save time on tedious tasks.
    53. TomTom is using Azure OpenAI Service, Azure Cosmos DB and Azure Kubernetes Service to revolutionize the driver experience.
    54. Toyota is deploying AI agents to harness the collective wisdom of engineers and innovate faster in a system named “O-Beya,” or “big room” in Japanese. The “O-Beya” system currently has nine AI agents — from a Vibration Agent to a Fuel Consumption Agent.
    55. Unilever is partnering with Microsoft to identify new digital capabilities to drive product innovation forward, from unlocking the secrets of our skin’s microbiome to reducing the carbon footprint of a multibillion-dollar business.
    56. Unity used Microsoft Azure OpenAI Service to build Muse Chat, an AI assistant that can guide creators through common questions and help troubleshoot issues to make game development easier.
    57. University of South Florida is using Microsoft 365 Copilot to alleviate the burden of repetitive, time-consuming tasks so faculty and staff can spend this time creatively solving problems, conducting critical research, establishing stronger relationships with peers and students and using their expertise to forge new, innovative paths.
    58. Utilidata built the first distributive AI and accelerated computing platform for the electric grid allowing flexible transformation and dynamic infrastructure to increase electrification and decarbonization.
    59. Visma has developed new code with GitHub Copilot, Microsoft Azure DevOps and Microsoft Visual Studio as much as 50 percent faster, contributing to increased customer retention, faster time to market and increased revenue.
    60. Wallenius Wilhelmsen is implementing Microsoft 365 Copilot and using Microsoft Viva to drive sustainable adoption, streamlining processes, empowering better decision making and cultivating a culture of innovation and inclusion.
    61. Wipro is committed to delivering value to customers faster and improving the outcomes across the business by investing $1 billion in AI and training 200,000 employees on generative AI principles with Microsoft Copilot.

    Read more:

    IDC InfoBrief: sponsored by Microsoft, 2024 Business Opportunity of AI, IDC# US52699124, November 2024

    Tags: AI, AI Azure, Azure OpenAI Service, Copilot, Copilot Studio, Microsoft 365 Copilot

    MIL OSI Economics

  • MIL-OSI Economics: AI Data Drop: Handling risky business in half the time

    Source: Microsoft

    Headline: AI Data Drop: Handling risky business in half the time

    This story is featured in the WorkLab newsletter. Sign up for it here. 

    Every company needs to be able to assess where and how mistakes get made. Let’s say a banking customer experiences delays when they’re applying for a new loan. That dissatisfaction means that customer service employees, in turn, spend valuable time dealing with complaints and inquiries. Figuring out why those delays happen—and fixing the issue—can directly affect the bottom line. 
     
    For an institution like Australia’s Bank of Queensland, with a few thousand employees serving 1.4 million customers, identifying overlooked risks is critical to reducing costly errors in the future. To do this, it uses a common problem-solving method: root cause analysis. “The process is essential for maintaining high standards of customer satisfaction and operational excellence,” says Bank of Queensland’s Head of Partner Programs for Group Tech, Bernadette Demasi. But it’s also resource-intensive. Our researchers at Microsoft teamed up with the bank to explore how AI could improve speed and efficiency. 
     
    Their findings: AI access—along with custom, targeted prompt development—can help diagnose those bottom linebusting issues more quickly and accurately. 

    What we did: Our researchers gave 14 people access to Copilot, while a control group of 21 did not have it. Participants were asked to analyze a simulated “risk event”—loan approval delays—and tasked with identifying and cataloging the potential reasons for the delay. 

    Because we know there’s a learning curve with AI, we also wanted to see whether giving targeted guidance could help Copilot users hit the ground running. The treatment group received tips on task-specific optimization, including sample prompts that encouraged asking for narrative responses (“imagine telling the story…”) and “think-aloud” prompts (“imagine you’re thinking it through with a colleague…”). 

    After both groups were finished, the research team compared the quality of the analyses and how long each group took to write them.  

    What we found: Analysts using Copilot were able to determine the root cause 51.8% faster, a remarkable result. In fact, more than half of the analysts with AI access completed the task more quickly than the fastest analyst without access to AI. Despite the relatively small sample size, the performance differences between the treatment and control groups were so pronounced and uniform that the results are statistically significant. 

    Bankers Work Twice as Fast with Copilot

    In a Microsoft study at Bank of Queensland, analysts using Copilot were able to finish a difficult analysis 51.8% faster than those without Copilot.

    We also saw that analysts with access to Copilot had consistently high-quality outcomes compared to the more variable quality from the non-Copilot users. And using AI significantly improved the effectiveness and clarity of the analyses.  

    Survey results also suggest that AI users had a much better experience. More than a third of analysts with Copilot found the task less draining than did those without, which suggests that Copilot significantly reduced their cognitive load. Other positive results were even more uniform: 93% of the treatment group agreed that Copilot improved the quality of their root cause analysis and reduced the effort involved in completing it. Every participant with access to Copilot agreed that it helped them answer questions about contributing factors for the risk event, and that going forward they wouldn’t want to do this type of analysis without it. 
     
    What it means: Completing root cause analyses improved Bank of Queensland’s ability to identify and manage risks, and using Copilot has reduced the company’s analyst time significantly. They estimate that equipping 1,000 employees with Copilot could enhance productivity so much that it is equivalent to adding 120 new employees. “We have more work to do than people to do it,” Demasi says. “Adding capacity through AI allows us to work through resource constraints and supports our teams to gain the capacity to focus on higher-value work.” 

    Just as important: The results indicate that it’s not sufficient to simply give your people access to AI with no guidance. To get great results, you need to work together with your teams to give targeted direction on how to adopt the technology, supporting them to push the boundaries on how to use it to their best advantage. 

    MIL OSI Economics

  • MIL-OSI USA: Cassidy, Cramer Reintroduce Fair Access to Banking Act to Protect Legal Industries from Debanking

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy

    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Kevin Cramer (R-ND), and 39 Republican colleagues reintroduced the Fair Access to Banking Act, which protects fair access to financial services and ensures banks operate in a safe and sound manner. The legislation requires that lending and services decisions must be based on impartial, risk-based analysis, not political or reputational favoritism. 
    “It’s wrong for banks to single out individuals or industries for political and social reasons,” said Dr. Cassidy. “This legislation guarantees fairness for essential employers in Louisiana, such as oil and gas development.”
    “When progressives failed at banning these entire industries, what they did instead is they turned to weaponizing banks as sort of a backdoor to carry out their activist goals,” said Senator Cramer. “Financial institutions are backed by taxpayers, for crying out loud! They should be obligated to provide services in an unbiased, risk-based manner. The Fair Access to Banking Act ensures that banks provide fair access to services and enacts strict penalties for categorically discriminating against legal industries and individuals.”
    In recent years, prominent American banks have engaged in a discriminatory practice, referred to as debanking. Banks and financial institutions use their economic standing to categorically exclude law-abiding, legal industries by refusing to lend or provide services to them. This includes industries such as firearms, ammunition, crypto, federal prison contractors, as well as energy producers. 
    Specifically, this legislation penalizes banks and credit unions with over $10 billion in total consolidated assets, or their subsidiaries, if they refuse to do business with any legally compliant, credit-worthy person. It also prevents payment card networks from discriminating against any qualified person because of political or reputational considerations. The bill requires qualified banks to provide written justification for why they are denying a person financial services. Further, the Fair Access to Banking Act would penalize providers who fail to comply with the law by disqualifying institutions from using discount window lending programs, terminating status as an insured depository institution or credit union, or imposing a civil penalty of up to $10,000 per violation. 
    The bill is based on President Trump’s Fair Access Rule, which was introduced during his first administration and required financial institutions to make individual risk assessments rather than broad decisions regarding entire industries or categories of customers. The Fair Access to Banking Act codifies these protections. The Biden administration paused the rule’s implementation in early 2021.
    The legislation is a response to United States banks and financial institutions increasingly using their economic standing to categorically discriminate against legal industries and conservatives. For example, Citigroup instituted a policy in 2018 to withhold project-related financing for coal plants, and in 2020, five of the country’s largest banks announced they would not provide loans or credit to support oil and gas drilling in the Arctic National Wildlife Refuge, despite explicit congressional authorization. Such exclusionary practices also extend to industries protected by the Second Amendment, with Capital One, among other banks, previously including “ammunitions, firearms, or firearm parts” in the prohibited payments section of its corporate policy manual, and payment services like Apple Pay and PayPal denying their services for transactions involving firearms or ammunition. First Lady Melania Trump and technology companies alike allege banks have debanked them or refused to do business. During his address to the World Economic Forum in January, President Trump highlighted big banks and their discriminatory practices of targeting conservatives.  
    Cassidy and Cramer were joined by U.S. Senators Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Katie Britt (R-AL), Ted Budd (R-NC), Shelley Moore Capito (R-WV), John Cornyn (R-TX), Tom Cotton (R-AR), Mike Crapo (R-ID), Ted Cruz (R-TX), John Curtis (R-UT), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Bill Hagerty (R-TN), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Ron Johnson (R-WI), Jim Justice (R-WV), John Kennedy (R-LA), James Lankford (R-OK), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Dave McCormick (R-PA), Jerry Moran (R-KS), Bernie Moreno (R-OH), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-SC), Tim Sheehy (R-MT), Dan Sullivan (R-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL), and Roger Wicker (R-MS) in cosponsoring the legislation. U.S. Representative Andy Barr (R-KY-06) introduced similar legislation in the U.S. House of Representatives. 
    Support for the Fair Access to Banking Act has grown every Congress. At the state level, Florida and Tennessee passed Fair Access laws and similar legislation was introduced in Louisiana, Arizona, Georgia, Idaho, Indiana, Iowa, Kentucky, and South Dakota. Banks have dropped membership in discriminatory groups which were aimed at starving specific industries.
    The Fair Access to Banking Act is endorsed by the National Shooting Sports Foundation, National Rifle Association, National Cattlemen’s Beef Association, The Digital Chamber, Blockchain Association, Independent Petroleum Association of America, Online Lenders Alliance, Day 1 Alliance, GEO Group, Lignite Energy Council, National Association of Wholesaler-Distributors, and National Mining Association.

    MIL OSI USA News

  • MIL-OSI United Nations: Experts of the Committee on the Elimination of Discrimination against Women Commend Nepal on Increased Representation of Women in the Public Sector, Raise Questions on the “Chhaupadi” Practice and Women’s Right to Confer Citizenship

    Source: United Nations – Geneva

    The Committee on the Elimination of Discrimination against Women today concluded its consideration of the seventh periodic report of Nepal, with Committee Experts commending the State for increasing the representation of women in the public sector, while raising questions on the “Chhaupadi” practice affecting menstruating women and girls, and Nepalese women’s right to confer citizenship to their spouses and children.

    Hiroko Akizuki, Committee Expert and Country Rapporteur for Nepal, reading questions on behalf of another expert, commended Nepal for its recent increases in the representation of women in the public sector, increasing over the last decade from just 8 per cent to almost 30 per cent now, with targets to increase this to 35 per cent by 2030.

    Another Expert said the Chhaupadi practice forcibly exiled menstruating women and girls from their homes to menstruation huts. Although this practice had been criminalised, its practise continued, and this had resulted in the deaths of menstruating women and girls from animal attacks. What was being done in this area and in the area of period poverty? How could the engagement of men and boys be mobilised against Chhaupadi?

    A Committee Expert noted that despite recent amendments to the Constitution, many discriminatory provisions still caused immense hardship to women, girls and their families, particularly when it came to passing on citizenship. Did the State party plan to address this gross violation of women’s rights by repealing several articles in the Constitution, allowing Nepalese women to transfer their nationality to their spouses on equal terms? How would the State party enable stateless children to access social services? Were there plans to ensure universal birth registration in the State party, and to ratify the two United Nations conventions on statelessness?

    The delegation said the Government had conducted many programmes in the provinces where practices of Chhaupadi were practised. Ending traditional, harmful practices in society was not easy, and it took time to bring about change. The State had developed Chhaupadi guidelines in 2007 and was developing guidelines for the concept of dignified menstruation.

    The delegation said Nepal’s Constitution ensured that women had equal rights to confer citizenship to their children. In January 2025, the Government submitted the citizenship bill to address challenges for individuals and children whose mothers had passed away. If the father’s identity was unknown, citizenship could be granted based on the maternal line. This amendment aimed to confer citizenship to those born to a Nepalese mother outside Nepal’s borders. If the father of a child was not identified, the mother could register her family name at the birth of the child.

    Introducing the report, Nawal Kishor Sah Sudi, Minister for Women, Children and Senior Citizens of the Government of Nepal, said the State was proud to have four high-ranking women policymakers of the Government of Nepal in the delegation, as well as Ms. Bandana Rana, as a distinguished Committee Member of this Committee. Since the promulgation of the Constitution, the Federal Parliament had enacted 16 different laws related to fundamental rights, including the rights of women. The State had also made notable progress in women’s political representation and participation, with women holding 34 per cent of seats in the Federal Parliament. The Government also recently appointed its first woman Chief Secretary and the first woman Registrar in the Supreme Court of Nepal in history.

    In closing remarks, Ram Prasad Subedi, Permanent Representative of Nepal to the United Nations Office at Geneva, said the dialogue had been wonderful and constructive. The participation of all stakeholders was greatly appreciated. The Government was fully committed to upholding the Convention’s objectives.

    In her closing remarks, Nahla Haidar, Committee Chair, thanked the State party for its commitment and political will, and for the constructive dialogue.

    The delegation of Nepal was comprised of representatives of the Ministry of Women, Children and Senior Citizens; the Ministry of Law, Justice and Parliamentary Affairs; the Office of the Prime Minister and Council of Ministers; and the Permanent Mission of Nepal to the United Nations Office at Geneva.

    The Committee on the Elimination of Discrimination against Women’s ninetieth session is being held from 3 to 21 February. All documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage . Meeting summary releases can be found here . The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet at 10 a.m. on Thursday, 6 February to consider the ninth periodic report of Belarus (CEDAW/C/BLR/9).

    Report

    The Committee has before it the seventh periodic report of Nepal (CEDAW/C/NPL/7).

    Presentation of Report

    NAHLA HAIDAR, Committee Chair, said the Committee was proud to have Ms. Bandana Rana as a member of the Committee from Nepal.

    NAWAL KISHOR SAH SUDI, Minister for Women, Children and Senior Citizens of the Government of Nepal, said the State was proud to have four high-ranking women policymakers of the Government of Nepal in the delegation, as well as Ms. Bandana Rana, as a distinguished Committee Member of this Committee. Nepal remained fully committed to the implementation of the Convention and had made substantial progress in developing a robust legal and policy framework that supported the empowerment of women and girls.

    Since the promulgation of the Constitution, the Federal Parliament had enacted 16 different laws related to fundamental rights, including the rights of women. These laws comprehensively addressed women’s rights and reflected the State’s commitment to strengthening legal protections. The Government of Nepal had commenced its sixteenth Periodic Plan (2024/25–2028/29) in 2024, which recognised the critical importance of gender-sensitive policies and prioritised gender equality and women’s empowerment as fundamental pillars of its development agenda.

    The citizenship (amendment) bill had been registered in Parliament, aiming to address citizenship challenges for individuals whose mothers had died early or were out of contact. Provisions ensured that if a father’s identity was unknown, citizenship could be granted based on maternal descent. Nepal had ratified the United Nations Palermo Protocol in 2020, and in 2024, an act to amend some of Nepal’s laws had been amended by widening the definition of trafficking to include foreigners and immigrants, and also criminalising human smuggling.

    Nepal was the second country in Asia to recognise same-sex marriage. Other legal processes, including marriage and identity cards for sexual and gender minorities, were underway. The Nepal Law Commission, an autonomous research body of the Government, was currently conducting a comprehensive study on discriminatory laws against the rights of gender and sexual minorities to initiate necessary legal reform in this regard. The State had also made notable progress in women’s political representation and participation, with women holding 34 per cent of seats in the Federal Parliament. The Government also recently appointed its first woman Chief Secretary and the first woman Registrar in the Supreme Court of Nepal in history.

    Nepal remained committed to combatting gender-based violence and had established women, children, and senior citizen service centres in 1996 as part of a dedicated unit within the Nepal Police to investigate gender-based violence cases effectively. Today, 232 fully functioning centres operated across the country, strengthening Nepal’s law enforcement response to violence against women.

    The Government provided free physical and mental healthcare services and protective measures. Currently, 94 government health institutions functioned as one-stop crisis management centres, alongside 21 service centres that served as transit homes, and 276 additional support centres. The Government of Nepal had established long-term rehabilitation centres, one at the national level and another at the provincial level. There were also 10 dedicated rehabilitation centres for victims of human trafficking and 53 community-based safe shelters, operating in collaboration with provincial governments, civil society organizations, and other stakeholders. Over 6,000 community-based networks were actively engaged in the fight against gender-based violence, reflecting Nepal’s strong commitment to protecting vulnerable groups and ensuring justice to the survivors.

    Nepal recognised the link between climate change, natural disasters, and gender equality, and had strengthened disaster preparedness to support and protect women, especially in vulnerable communities. The September 2024 floods in Kathmandu and nearby areas saw effective disaster management, ensuring shelter, healthcare, and essential services for affected communities. Nepal continued to integrate gender considerations into national climate policies to build long-term resilience.

    Nepal remained committed to ensuring justice for victims of past human rights violations, particularly in cases affecting women. The third amendment to the enforced disappearances enquiry, truth, and reconciliation commission act 2014, approved in August 2024, now explicitly included serious human rights violations in its amendment such as rape and grave sexual violence, intentional or arbitrary killings, enforced disappearances, inhumane or cruel treatment, and torture. A Special Court had been designated to adjudicate these cases and a dedicated investigative unit for sexual violence cases had been established.

    Nepal remained steadfast in its commitment to gender equality, women’s empowerment, and social justice. The State aimed to expand access to quality education for girls, particular in rural areas, enhance women’s economic independence, strengthen maternal health and gender-based violence support services, develop gender-sensitive infrastructure, and promote women’s leadership. While challenges remained, the State’s resolve was stronger than ever, and the Committee’s guidance was welcomed.

    Statement by the National Human Rights Institution

    LILY HAJUR BASNYAT THAPA, National Human Rights Commission of Nepal, said it was crucial to acknowledge progress made by the State. The affirmative actions taken by the Government of Nepal were highly appreciated. Despite constitutional guarantees, Nepal’s legal framework still contained critical gaps. Nepalese laws lacked comprehensive definitions of discrimination, particularly around direct, indirect, and intersectional forms of discrimination affecting women. While some protective measures existed, implementation remained inconsistent. A distinct legal provision with a comprehensive definition of discrimination was essential to ensure justice for women facing severe discrimination. More action needed to be taken to strengthen the institutional mechanism, the National Women’s Commission.

    The legal prohibition of entrenched harmful practices such as child marriage, Chhaupadi, discrimination against widows, and dowry, continued to persist. The Government of Nepal had expedited its efforts to amend almost a dozen laws to make them compatible with the Palermo Protocol, but it was too late to make amendments to the laws related to human trafficking. Furthermore, women often faced significant barriers in employment and migration. In sectors like tea plantations, where women constituted 80 per cent of the workforce, they lacked adequate maternity protections and faced potential wage cuts during pregnancy. Migrant women workers were particularly vulnerable, experiencing exploitation in destination countries with insufficient pre-departure training and reintegration support. Similarly, critical challenges persisted in sexual and reproductive healthcare. Rural and Madhesi women faced limited access to family planning and safe abortion services. Moreover, a deeply entrenched son preference continued to drive sex-selective practices, with statistics showing 112 boys born for every 100 girls in 2021.

    Several critical areas demanded immediate attention. Women faced substantial restrictions in conferring citizenship to children and spouses, unlike their male counterparts. Rural women had limited access to sexual and reproductive health services, and comprehensive sexuality education remained restricted. Indoor pollution where 80 per cent of rural cooking happened without ventilation, caused around 7,500 annual deaths, disproportionately affecting women. The Commission proposed several critical interventions including to enact comprehensive anti-discrimination legislation, establish robust mechanisms for women’s protection, strengthen political representation through practical measures, improve migrant worker protections, enhance sexual and reproductive healthcare access, and address systemic gender stereotypes. The Committee was urged to strongly recommend the full and immediate implementation of women’s constitutional and legal rights in line with the Convention and the Committee’s previous recommendations.

    Questions by a Committee Expert

    HIROKO AKIZUKI, Committee Expert and Country Rapporteur for Nepal, said the Committee commended Nepal for its commitment to fulfilling its obligation and participation in the exchange despite repeated earthquakes and natural disasters. What efforts had been taken to adopt comprehensive anti-discrimination legislation, including a definition of discrimination against women, in both the public and private spheres? How did the State party address cross-cutting discrimination against women, including women with disabilities, lesbian, gay, bisexual, transgender and intersex women, indigenous women, and elderly women, among others? What measures had been taken to ensure the effective implementation of laws? What was the status and content of the special opportunity bill? Were women’s rights organizations participating in the drafting of the bill? What measures had been implemented to enhance women’s awareness of their rights, and the legal remedies available under the Convention? Were human rights being recognised as including the collective rights of indigenous women?

    Responses by the Delegation

    The delegation said Nepal was doing its best to implement legal reforms with a legal perspective. The State had a plan for an integrated gender-based violence act, which was underway and moving in a positive direction. Nepal’s Constitution provided the framework for fighting all acts of discrimination. The State was aware that there should not be any multiple and intersecting forms of discrimination. Nepal had several special laws which provided remedy for discrimination, including the human trafficking act, the domestic violence act, the sexual harassment at work act, the witchcraft accusation act, the labour act, and the victim crime act, among others, along with the Criminal Code, which provided no room for discrimination on any ground.

    At present, there were special opportunity provisions scattered in various laws. It was expected that the special opportunity bill would soon be enacted by the Parliament. There were paid lawyer systems in the court, and more than 41,000 people received these services last year. It was required that for any lawmaking, there should be consultation with stakeholders with all three tiers of Government, to ensure a participatory approach. This would be occurring with the legal aid bill in a few weeks. In 2024, 200 young lawyers were mobilised, with 121 being women, to provide legal aid. The State had begun to have a roster of pro-bono lawyers within the Nepal Bar Association, already this year they had provided 79 victims with pro-bono support, 79 of whom were women. There was no special law concerning the rights of indigenous women, but scattered laws covered these rights.

    Questions by Committee Experts 

    A Committee Expert asked what plans were in place to provide necessary resources to implement the national gender equality policy? Were there plans to establish provincial offices of the National Women’s Commission? What measures had been taken to address recommendations of the National sub-Committee, so it could fully comply with the Paris Principles? There were allegedly issues with financing for the resources assigned to the Ministry of Women; could more light be shed on this issue? How was the budget distributed and how were the issues dealt with? How effective were the decisions taken by the National Women’s Commission? Were their decisions binding? 

    Another Expert said temporary special measures were essential for ensuring equal opportunities for women in economic and social life. Could more information be provided about the State’s gender quotas? When would a gender equality principle be implemented directly into the Election Code of Conduct? How could temporary special measures be used to mitigate specific discrimination faced by minorities?

    Responses by the Delegation

    The delegation said the Government was actively implementing the gender equality policy, but faced challenges in this regard, including a lack of resources. Financial resources were being prioritised by the plan. After the federal election in 2017, 16 parliamentary panels were formed to monitor the Government’s work. A division was responsible for monitoring and implementing recommendations from the treaty bodies.

    Recently, Nepal had been taking many steps in the area of temporary special measures. In line with the Committee’s previous recommendations, the Government had enacted temporary special measures to accelerate women’s participation at all levels, particularly in the decision-making processes. One of the most notable achievements had been the gender balance in leadership at the highest level of the Government. It was mandated that the House of Representatives needed to include at least one woman. At the recent elections of the local level, it was mandated that at least one nominee for the position of Mayor or Deputy Mayor should be a woman. In the 2022 elections, over 40 per cent of women were elected as representatives, a notable improvement from the 2017 elections. In the Office of the Prime Minister, there was a committee to facilitate the recommendations of the National Human Rights Commission.

    Nepal had seven provinces and budgets were allocated at federal, provincial and local levels. The budget at the federal level was a bit low. The proposed civil services bill had proposed initiatives for indigenous women and other minorities. The provincial services act already sought to provide for minorities.

    Questions by Committee Experts

    A Committee Expert said Nepal had a new opportunity to address historical conflicts in ways which would set an example to other countries in the sub-continent. Despite the reconciliation commission and the commission on enforced disappearances, impunity for conflict-related violations persisted. There should be no amnesty or sentence reductions for rapists. Nepal’s long awaited transitional justice law was adopted in 2024, and the Committee congratulated the State on its many positive elements. But Nepal was encouraged to go further along the women, peace and security agenda. Was Nepal providing reparations for victims of conflict-related sexual violence? Had the law been changed? Nepal was the first Asian country to safeguard the rights of sexual and gender minorities which should be applauded. Nepal’s climate-related gender-based violence was correlated to climate crisis and this should be recognised and included in climate change action plans. How could the laws in Nepal be brought in line with the United Nations treaty on cybercrimes?

    The Chhaupadi practice forcibly exiled menstruating women and girls from their homes to menstruation huts. Although this practice had been criminalised, its practise continued, and this had resulted in the deaths of menstruating women and girls from animal attacks. What was being done in this area and in the area of period poverty? How could the engagement of men and boys be mobilised against Chhaupadi? How could the Kumari practices be modernised in line with modern sciences?

    A Committee Expert took note that the State party had ratified the Palermo Protocol in 2020. When was full compliance with the Protocol expected? Would the State party consider removing a provision which allowed the judiciary to fine victims if they failed to appear in court? Was the State party planning to change the provision which conflated trafficking with sex work? What steps were being taken to ensure trafficking cases were being dealt with in an acceptable time frame? The Committee noted with concern that the Government continued to impose restrictive age bans for women under 24 seeking domestic work, making them at a higher risk of becoming victims of trafficking. Would the State consider lifting these bans. How were migrant women’s needs addressed in bilateral labour agreements? Was pre-departure training provided for women migrants on labour rights or gender specific challenges?

    No progress seemed to have been made to secure the rights of adult sex workers. How and when would the State party formulate a comprehensive policy and legislative framework to ensure the protection of women in prostitution? How would Nepal punish law enforcement officers who targeted sex workers? How would the State support sex workers in leaving the profession and seeking new forms of work.

    Responses by the Delegation

    The delegation said the Government had conducted many programmes in the provinces where practices of Chhaupadi were practised. Ending traditional, harmful practices in society was not easy, and it took time to bring about change. The State had developed Chhaupadi guidelines in 2007 and was developing guidelines for the concept of dignified menstruation.

    Nepal had ratified the Palermo Protocol in 2020, and an act amended in 2024 widened the definition of trafficking. A draft policy and action plan aimed to address several elements of trafficking, including providing for reparations for victims and training for police and judges in human trafficking cases.

    The amended law had provided specialised scope to examine the issue of sexual violence, and had provided for a special court for cases of sexual violence. The amendment included the victim-centric approach, and aimed to ensure victims were satisfied with outcomes, including reparations.

    Nepalese law did not recognise prostitution. The Nepalese police were taking legal measures to criminalise the clients of prostitutes. The State was aware of the rights of sex workers, which needed to be protected. The 35 day statute of limitations had been abolished and extended to three months. Sex workers were equally entitled to enjoy their rights under the Nepalese Constitution.

    The State was in the process of amending the domestic violence act and would consider the aspect of technology-related gender-based violence. Legal reform was not the only means to intervene in harmful practices. For example, the Government, in cooperation with civil society organizations, was dedicated to controlling the exploitation of sex workers. Public awareness campaigns were being launched in the adult entertainment sector, and multiple efforts had been made to reduce the demand for prostitution through the distribution of leaflets and other media. Collaborative efforts were being made in border areas to monitor human trafficking issues.

    The Government, in support with partners, was working to implement programmes in the provinces with regard to child marriage, including through declaring “child marriage free areas”.

    Questions by Committee Experts

    HIROKO AKIZUKI, Committee Expert and Country Rapporteur for Nepal, reading questions on behalf of another expert, said last session the Committee adopted its latest general recommendation on parity in politics. The State party was commended for its implementation of electoral quotas; however, the low numbers of representation were concerning. What measures was the State party taking to address the low representation of women, particularly from minority groups? In the 2022 election, male voters greatly outnumbered female voters. Did the State party take any measures to ensure political literacy, and engagement among women and girls, to encourage their participation in democratic processes?

    Nepal was commended for its recent increases in the representation of women in its public sector, increasing over the last decade from just 8 per cent to almost 30 per cent now, with targets to increase this to 35 per cent by 2030. Could current data on the gender breakdown of management and decision-making positions in the public sector be provided, as well as any plans in place to increase these figures? Did the State party have any data on women in board and management positions in Nepal and what was being done to increase these figures? What was being done to protect women human rights defenders in the digital sphere?

    Another Expert said despite recent amendments to the Constitution, many discriminatory provisions still caused immense hardship to women, girls and their families, particularly when it came to passing on citizenship. Did the State party plan to address this gross violation of women’s rights, by repealing several articles in the Constitution, allowing Nepalese women to transfer their nationality to their spouses on equal terms. How would the State party enable stateless children to access social services? Were there plans to ensure universal birth registration in the State party, and to ratify the two United Nations conventions on statelessness? Was there a special arrangement in the new proposed bill which addressed Nepalese women married to refugees?

    Responses by the Delegation

    The delegation said the Government had introduced many special measures to accelerate gender equality. Recently, the Government had introduced issues of intersectional disparity, with bills drafted in this regard. Currently, the level of Nepalese female diplomats was low. The Government had taken steps last year to foster inclusivity in international representation, to encourage more diverse representation in foreign engagement. Nepal’s Constitution ensured that women had equal rights to confer citizenship to their children. in January 2025, the Government submitted the citizenship bill to address challenges for individuals and children whose mothers had passed away. If the father’s identity was unknown, citizenship could be granted based on the maternal line. This amendment aimed to confer citizenship to those born to a Nepali mother outside Nepal’s borders. If the father of a child was not identified, the mother could register her family name at the birth of the child.

    Nepal’s representation of women in the public sector had significantly improved, and the Government was making efforts to improve women’s participation in the private sector.

    Questions by a Committee Expert

    A Committee Expert said the Committee had noted with satisfaction significant progress made in the field of education, particularly the act approving compulsory, free education in 2018. The Committee also noted with satisfaction the adoption of the 10-year school education plan to 2032, prioritising female education and gender equality. What measures had been taken to strengthen the institutional capacities of local Governments, including dissemination in local languages? What measures were being taken to ensure access to education for all children, regardless of their caste or citizenship status, including girls of all ethnic or religious groups? The high prevalence of child marriage in certain provinces had resulted in a high dropout rate from schools. What measures were being taken to ensure pregnant and married girls could continue their education?

    Responses by the Delegation

    The delegation said every citizen had the right to access education. Persons with disabilities had the right to free education and every Nepalese community had the right to receive education in their mother tongue. Nepal had adopted the policy of no discrimination in education, whatever the status of citizens. There were some difficulties with children who did not have citizenship, but it was hoped the citizenship bill, currently under review by parliament, would rectify this issue. The Government had to provide free textbooks and other logistic support under the act on education for all. The central Government was providing around 11 per cent of the total budget to education, with around seven per cent being allocated to local levels. This allocation had been steadily increasing over recent years.

    In 2016, the median marriage age of Nepalese women was 17.9; it had now risen to 18.3 years. There were some cases of early marriage, and the State acknowledged this. The legal age of marriage had now been raised to 20. Other measures to combat early marriage included night school, counselling programmes, and youth programmes, which contributed to raising awareness and mitigating this issue.

    Responses by the Delegation

    The delegation said the Education Act prioritised education for marginalised communities. The State strove to ensure that education was inclusive for children with disabilities. Many scholarships were provided at local levels and there were policies for providing special grants in 2025. A commitment had been adopted which aimed to eradicate discrimination in education.

    Questions by a Committee Expert

    A Committee Expert commended the State party for policies and legislation in the field of employment, including the labour act, the social security act and the five-year strategic national action plan to 2025 on moving workers in the informal sector to the formal sector. However, there were still discrepancies, including the much lower level of female employment rate, compared to males. What measures had been taken to address the low representation of women in the workforce? What was the timeline for ensuring full payment for women in all sectors? Were enhanced provisions for equal sharing of work for women being envisaged with the new national action plan?

    Women made up only around 10 per cent of migrant workers. What was the timeline to remove the ban and preconditions for women going abroad for domestic work? What protection measures were available for women from online harassment? When would the State party amend the law on sexual harassment and ensure justice for women victims and access to legal aid? How many cases of sexual harassment were prosecuted in the past two years and how many convictions were issued? What measures were envisaged to ensure equal opportunities for women and girls, including those with disabilities, in the digital economy?

    Responses by the Delegation

    The delegation said an employment service centre supported women’s participation in the workforce. Nepal had made substantial progress in reducing the wage gap and promoting equal opportunities, but challenges still persisted. Women were overrepresented in lower sectors and underrepresented in leadership positions. To address these challenges, Nepal was introducing gender responsive policies and conducting leadership training, among other measures. The Government conducted monitoring through regulatory oversight and audits, supported by trade unions and workers. Collaboration was also undertaken with partners, including the World Bank and the International Labour Organization.

    Nepal’s five-year national action plan sought to integrate vulnerable groups into the formal economy through skills training and offering opportunities for workers to formalise their employment. The social security scheme provided support to women in the informal sector and assisted them to transfer to formal employment.

    Nepal was committed to protecting all its citizens, including female migrant workers. Equal treatment policies were in place for both men and women, prioritising their security and health. Nepal was working closely with destination countries, such as the United Arab Emirates, to ensure the safety of its workers. Nepal was incorporating assistive technology to address the needs of persons with disabilities. Specific programmes were being developed to provide training and employment opportunities for persons with disabilities.

    Recently, Nepal had adopted an action plan on business and human rights, which provided a human rights friendly approach for all workers. The State was also implementing the fifth national human rights action plan, which covered employment as a major issue.

    The sexual harassment at workplace act allowed for cases of sexual harassment to be reported, and cases could also be reported to the police. However, it was hard for the Government to collect data on this topic. The safe motherhood and reproductive health act also provided paternity leave to fathers. This equally applied to the public and private sectors. The legal provisions were there but people were often not aware of their rights under these acts.

    Questions by a Committee Expert

    A Committee Expert said since the last review, Nepal had made significant progress in its health policy, particularly in sexual and reproductive health, with the adoption of the national strategy against discriminatory sex selection. However, the maternal mortality rate remained high and there were serious deficiencies in care and health centres. Some women refrained from using contraception unless they gave birth to a male child, putting them at risk of sexually transmitted diseases. The stigma around these diseases and HIV/AIDS prohibited women from seeking timely access to healthcare. What measures did the State intend to adopt to confront these challenges? What would be done to improve maternal mortality and prevent women from contracting venereal diseases and HIV/AIDS? How would it be ensured that women and girls had access to family planning and reproductive health services?

    Abortion services were not easy to obtain or affordable for many women. What would be done to ban selective abortions? What mental health and suicide prevention services were available for women in Nepal? Would the invasive treatment of intersex persons be criminalised? Would forced sterilisation be criminalised, including against women and children with disabilities? How would free, prior and informed consent for women be guaranteed, including with respect to abortion?

    Responses by the Delegation

    The delegation said Nepal had begun a vaccination programme against the human papilloma virus for all women and girls across the country. There were several programmes in place which focused on sexual and reproductive health, including the Safe Motherhood Programme and the Safe Abortion Programme. Any woman could undertake an abortion up to 12 weeks without issue. Safe abortions were available in all seven provinces of the country. The Government acknowledged the importance of mental health support for women. Healthcare providers were provided with training to offer support to women who were navigating fertility issues.

    There were inconsistencies between the sexual and reproductive health act and the Criminal Code. Because of this, the process of the amendment of the Criminal Code had been enacted, in line with the safe motherhood act. Dignified menstruation guidelines had been introduced, and work was being done to ensure the school curriculum covered sexual and reproductive health education.

    Nepal had no record of cases in regard to forced sterilisation of persons with disabilities. A social service unit programme provided access to free health services for specific groups, including women and girls with disabilities.

    Questions by a Committee Expert

    A Committee Expert said in December 2024, the National Planning Committee introduced a framework to increase access to social security programmes for those from marginalised groups. However, women in Nepal still faced significant financial challenges when it came to property ownership, obtaining bank loans, and accessing credit. Family benefits such as pensions and social security were often controlled by male family members, leaving women financially dependent. How did the Government monitor and evaluate the effectiveness of laws and policies aimed at eliminating discrimination in economic and social life? What steps were being taken to address the gaps between legal provisions and their implementation? How were women’s equal inheritance and property rights being enforced? How did the Government ensure women from marginalised communities had equal access to economic resources? What measures were in place to ensure single mothers received the social security benefits they were entitled to? How did the Government ensure pensions and other benefits reached the rightful female beneficiaries rather than be controlled by male relatives?

    Responses by the Delegation

    The delegation said Nepal had launched several programmes for economic empowerment in different areas, with different financial incentives. A programme had supported 90,000 entrepreneurs, with 70 per cent of them being women. The integrated subsidised loan scheme for women entrepreneur development aimed to enhance women’s economic empowerment.

    Questions by Committee Experts

    A Committee Expert said agriculture contributed to one third of Nepal’s gross domestic product. However, most elements within the sector remained male dominated. What measures had been implemented to ensure equal measures to credit and financial support for women? How was their financial literacy being enhanced? What was being done to introduce agricultural tools specifically for women? How was rural women’s access to information being improved? What steps were being taken to mitigate regional disparities? Indigenous women and girls, including those with disabilities, remained largely invisible. What measures had been taken to collect disaggregated data by sex, location and other factors to fully understand the challenges faced by indigenous women and girls? What was being done to recognise indigenous women as a distinct group in laws and policies, and to address their unique vulnerabilities and exclusion?

    Another Expert said Nepal was ranked among the countries most impacted by climate change. Significant rainfall had led to major challenges, including landslides and floods. Could more information be provided on the national action plan 2023? How did it address the negative impact of climate change on women? How did the plan ensure the full and effective participation of indigenous women and recognise their crucial role as caretakers and agents of change?

    Responses by the Delegation

    The delegation said different financial literacy programmes had been introduced for women in different provinces. In one programme, whenever a girl was born, a bank account was opened and the provincial government would contribute 500 Nepalese rupees a month for up to 20 years to support her education and wellbeing. A programme supported vegetable production and was making technology more accessible to women and girls. The Government of Nepal was committed to implementing the Convention. The national gender equality policy 2027 emphasised gender equality in all areas, including indigenous women. In the House of Representatives, the deputy speaker belonged to an indigenous group, and quotas were in place to ensure indigenous women’s representation in politics.

    Nepal was a victim of the climate crisis; the country protected the environment but felt the impact of climate change. Women and indigenous women were disproportionately affected.

    Questions by Committee Experts

    A Committee Expert asked who was eligible for legal aid and for what legal matters? Did legal aid include representation in court? How did women, particularly those from marginalised communities, learn about the right to legal aid? Was legal aid provided through a gender lens? What measures were in place to provide targeted support to marginalised women facing intersectional discrimination, such as sex workers, to access legal aid? Could non-citizens access legal aid in some circumstances?

    Only 52 cases of child marriage were handled by the Nepalese police in 2023. What explained the wide gap between the figures and enforcement? What was being done to protect child brides from being prosecuted? What was being done to eradicate the practice of dowry? Could the delegation clarify the status of gay marriages? How was the safety of inter-caste couples ensured? What legal measures were in place to protect the rights of women in unregistered marriages, such as polygamous marriages?

    Responses by the Delegation

    The delegation said the free legal aid act had been enacted in 1997. Under the act, low earners, victims of domestic violence, and senior citizens could receive free legal aid. The State was working to change the criteria to ensure more vulnerable groups of people could receive access to free legal aid. Legal aid services included the preparation of documents, pleading in front of the court, and different administrative services. There was no particular law to provide non-citizens with legal aid, but this was a fundamental right for everyone.

    Same sex marriage was valid but there was no legal instrument legalising these marriages yet. The State was assessing laws and how they could be reformed to better protect the rights of this community. All marriages had to be registered. There was no discrimination on the grounds of sex when it came to properties; men and women had equal rights. The dowry system had been criminalised by the National Criminal Code. Nepal was committed to having a collaborative approach with civil society and other partners to eliminate harmful practices and sensitise people at the grassroots level. This was a continuous effort.
    Closing Remarks

    RAM PRASAD SUBEDI, Permanent Representative of Nepal to the United Nations Office at Geneva, said the dialogue had been wonderful and constructive. The participation of all stakeholders was greatly appreciated. Nepal had made significant progress in certain areas, including on the Committee’s past recommendations. While there was a lack of data, there was not a lack of action. The Government was fully committed to upholding the Convention’s objectives.

    NAHLA HAIDAR, Committee Chair, thanked the State party for its commitment and political will, and for the constructive dialogue. The Committee would send specific recommendations through for immediate follow-up.

     

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently. 

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  • MIL-OSI United Nations: Human Rights Council to Hold Special Session onthe Democratic Republic of the Congo on 7February

    Source: United Nations – Geneva

    The United Nations Human Rights Council will hold a special session on the human rights situation in the east of the Democratic Republic of the Congo on Friday, 7 February 2025.

    The session will start at 10 a.m. in room XX of the Palais des Nations in Geneva. The meeting will be webcast live in the six official languages of the United Nations.

    The special session is being convened per an official request submitted on Monday evening, 3 February, by the Democratic Republic of the Congo, which has been supported by 27 States thus far.

    For a special session to be convened, the support of one-third of the 47 members of the Council – 16 or more – is required. This request is thus far supported by the following States members of the Council (27): Algeria, Belgium, Bulgaria, Burundi, Chile, Colombia, Costa Rica, Cyprus, Czechia, the Democratic Republic of the Congo, the Dominican Republic, France, Germany, Ghana, Iceland, Japan, Kyrgyzstan, Malawi, Marshall Islands, Morocco, the Netherlands, North Macedonia, the Republic of Korea, Romania, South Africa, Spain and Switzerland.

    The request is also supported by the following 21 observer States: Australia, Austria, Croatia, Denmark, Estonia, Finland, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Poland, Portugal, Slovakia, Slovenia, Sweden and the United Kingdom.

    The list of signatories remains open up to the holding of the special session. Therefore, the above list of States is to be considered provisional.

    In connection with this special session, the Council will convene an organizational meeting on Thursday, 6 February at 10 a.m. when specific details on the special session and its scenario will be announced. This organizational meeting will also be webcast live.

    This will be the thirty-seventh special session of the Human Rights Council. On 28 November 2008, the Council held a special session on the situation of human rights in the east of the Democratic Republic of the Congo. The full list of special sessions of the Human Rights Council can be seen here .

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently. 

     

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  • MIL-OSI Europe: Answer to a written question – China’s refoulement of DPRK escapees, and the situation of detainees in the DPRK – E-002674/2024(ASW)

    Source: European Parliament

    The EU has expressed its concerns about reports regarding the repatriation to the Democratic People’s Republic of Korea (DPRK) of North Koreans detained in China and has reiterated the importance of upholding the principle of non-refoulement.

    The EU has repeatedly raised this issue with China through diplomatic channels, asking China to refrain from returning North Korean refugees to the DPRK. The EU will continue to urge China to fully respect the principle of non-refoulement.

    The EU has noted with concern that foreign citizens remain arbitrarily detained in the DPRK, often following trials that do not conform with international fair trial guarantees, with no information available regarding their health or the conditions of their detention.

    The EU will continue to insist that the DPRK must respect its international human rights obligations, including with regard to the cases referred to in the written question.

    The EU has called on the DPRK to provide citizens of other countries detained in the DPRK with protections including access to consular assistance and to release persons that have been arbitrarily detained or sentenced after an unfair trial.

    The EU in principle does not enumerate individual consular cases in the annual Human Rights Council resolution on human rights in the DPRK.

    The cases relating to Myanmar concerned the highest representatives of the democratically elected government, detained after an unjustified, illegal and unconstitutional military coup.

    Last updated: 5 February 2025

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  • MIL-OSI Europe: Answer to a written question – Consequences of the EU-Thailand free trade agreement for the canning industry – E-002642/2024(ASW)

    Source: European Parliament

    The Commission takes note of the concerns raised by the Honourable Member about the potential impact of a future Free Trade Agreement (FTA) with Thailand on the EU tuna processing industry.

    In line with the overall EU approach to trade and investment agreements, also in the negotiations with Thailand the Commission aims at reaching a comprehensive deal that can bring growth opportunities for the EU economy and employment as a whole.

    In the negotiating rounds held so far, the EU and Thai negotiating teams have focused on advancing on the consolidation of the texts establishing the normative framework for the future trade relations, and have not yet discussed the treatment for individual products.

    Detailed and sector specific market access negotiations will start in the coming months, and will include consultations with relevant stakeholders in line with the usual EU practice for FTA negotiations.

    As in all FTA processes, economically sensitive sectors are subject to carefully designed specific modalities for market access which aim at preventing any market disturbances.

    Furthermore, as the negotiations enter a more advanced stage, a sustainability impact assessment will be carried out in support of the negotiations in order to provide an in-depth analysis of their potential economic, social, human rights, and environmental impacts.

    Last updated: 5 February 2025

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  • MIL-OSI Europe: Answer to a written question – Unfair competition in the aviation sector owing to Russian sanctions – E-002689/2024(ASW)

    Source: European Parliament

    The Commission is aware of the detours that European airlines need to undertake to fly to many Asian destinations. This is a consequence of Russia’s refusal to allow EU airlines to overfly its territory. These detours result in longer and costlier operations to countries like China.

    Although in 2016 the Commission proposed to Member States to negotiate an EU aviation agreement with China, Member States chose not to pursue such an agreement. Therefore, air transport between the EU and China is currently governed by bilateral agreements between individual Member States and China.

    The Commission stands ready and has offered to engage with Member States in this matter if they so wish.

    Last updated: 5 February 2025

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  • MIL-OSI New Zealand: Police officer injured, Huntly

    Source: New Zealand Police (National News)

    A Police officer has been injured in an incident at 8pm last night in Huntly.

    The officer, who was conducting enquiries at an address in Huntly on an unrelated matter, had stepped out of their patrol car when another vehicle drove toward them, colliding with the patrol vehicle and the officer.

    The offending driver fled but was located and arrested.

    The officer was transported to Waikato Hospital, assessed and treated for a moderate injury and discharged. They are expected to make a full recovery and are being provided with support through the process.

    The offender, a 47-year-old man, was taken into custody and is due to appear to Hamilton District Court today facing charges in relation to this incident.

    ENDS

    Issued by Police Media Centre

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  • MIL-OSI Europe: Written question – Deterioration of human rights in Cambodia and consequences on the tariff preferences under the EBA scheme – P-000436/2025

    Source: European Parliament

    Priority question for written answer  P-000436/2025
    to the Commission
    Rule 144
    Majdouline Sbai (Verts/ALE)

    In 2020, the Commission decided to withdraw part of Cambodia’s tariff preferences under the EU’s Everything but Arms (EBA) trade scheme, due to the deterioration of democracy, respect for human rights and the rule of law in the country.

    Since then, the situation has deteriorated further, notably when it comes to trade unions, as illustrated by Parliament’s resolution adopted on 28 November 2024[1]. It calls for the EU to send a clear message that improving human rights and safeguarding civil society freedoms are preconditions for economic cooperation, trade and investment.

    • 1.Will the Commission send without delay an observation mission to Cambodia to evaluate, on the ground, the various human rights abuses that have been reported by various civil society organisations?
    • 2.In light of its findings, will the Commission assess changes to tariff preferences (under the EBA scheme) based on the non-cooperation of the Cambodian Government in remedying and preventing human rights violations?
    • 3.What concrete measures is the Commission taking to exert pressure on the Cambodian Government, notably on the release of political prisoners? What concrete measures will the Commission take to increase support and provide protection for human rights defenders, civil society representatives and persecuted opposition members?

    Supporters[2]

    Submitted: 31.1.2025

    • [1] European Parliament resolution of 28 November 2024 on the shrinking space for civil society in Cambodia, in particular the case of the labour rights organisation CENTRAL (2024/2952(RSP)), https://www.europarl.europa.eu/doceo/document/TA-10-2024-0053_EN.html.
    • [2] This question is supported by Members other than the author: Catarina Vieira (Verts/ALE), Mounir Satouri (Verts/ALE)
    Last updated: 5 February 2025

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  • MIL-OSI Europe: Written question – Spread of foot-and-mouth disease in the EU – E-000395/2025

    Source: European Parliament

    Question for written answer  E-000395/2025
    to the Commission
    Rule 144
    Daniel Buda (PPE), Dan-Ştefan Motreanu (PPE)

    In Germany, the first case of foot-and-mouth disease in four decades has been detected on a farm near Berlin[1], triggering swift action: the slaughter of infected animals; transport bans; and the suspension of exports. Trading partners such as the UK and South Korea have imposed restrictions, banning the import of cattle, pigs and sheep from Germany[2], which theatens to undermine an agricultural sector with exports worth EUR 5 billion in 2024.

    • 1.What urgent concrete measures will the European Commission adopt to support Member States in preventing the spread of this disease, while ensuring continuity of trade and protecting the European agriculture sector?
    • 2.How does the Commission plan to support farmers affected by the outbreak of foot-and-mouth disease, both in terms of compensating for financial losses and of preventing similar crises in the future?

    Submitted: 29.1.2025

    • [1] https://www.politico.eu/article/germany-farmer-fear-massive-hit-foot-and-mouth-outbreak/
    • [2] https://www.politico.eu/article/uk-bans-german-livestock-imports-after-foot-and-mouth-outbreak/
    Last updated: 5 February 2025

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  • MIL-OSI NGOs: Egypt: Immediately release Badr Mohamed who has served his unjust protest-related sentence

    Source: Amnesty International –

    Ahead of an appeal hearing at the Court of Cassation against Badr Mohamed’s unjust conviction and five-year prison sentence in connection to the Ramsis Square protests on 16 August 2013, when he was 17 years old, Amnesty International’s Egypt Campaigner, Souleimene Benghazi, said:

    “Amnesty International has long called on the Egyptian authorities to immediately release Badr Mohamed and quash his unjust conviction and five-year prison sentence, which was handed down following a grossly unfair mass trial in which he was denied the right to an adequate defence. By 11 February, Badr Mohamed would have already spent a total of five years behind bars. It is high time for the Egyptian authorities to end this injustice and allow him to reunite with his family, including his wife Elena, an Austrian national, and his four-year-old daughter, Amina, whose birth he missed.

    “Conditions in Badr 1 prison where Badr Mohamed is being held are notoriously inhumane. Not only is he held with other prisoners in a small, cramped cell but he also has no bed, heating or access to clean water or adequate healthcare.

    “His ordeal is emblematic of the Egyptian authorities’ unrelenting reprisals against actual or perceived government critics, and their vicious crackdown on any form of dissent” – Amnesty International’s Egypt Campaigner, Souleimene Benghazi

    “Badr Mohamed was a 17-year-old child when he was swept up in mass arrests of protesters and bystanders over a decade ago. His ordeal is emblematic of the Egyptian authorities’ unrelenting reprisals against actual or perceived government critics, and their vicious crackdown on any form of dissent. As well as releasing Badr Mohamed, Egyptian authorities must also release thousands of other individuals including peaceful protesters, opposition politicians, journalists and human rights defenders who have been arbitrarily detained solely for exercising their human rights or following grossly unfair trials.”

    Background

    Badr Mohamed was released on bail three months after his initial arrest on 16 August 2013 in connection to the Ramsis Square protests. Amnesty International documented the unlawful force used by security forces against protesters and bystanders during the protests, resulting in the death of 97 protesters. Badr Mohamed was later convicted and sentenced to five years’ imprisonment in absentia in a grossly unfair mass trial in August 2017 on charges of participation in an illegal gathering and engaging in violence.

    He was re-arrested in May 2020, and retried on the same charges as per Egyptian law for those tried in their absence. On 12 January 2023, Badr Mohamed was convicted and sentenced to five years in prison following a grossly unfair retrial in front of a terrorism circuit of the Cairo Criminal Court.

    On 28 January 2025, the United Nation’s Human Rights Council carried out its Universal Periodic Review of Egypt’s human rights record. Several states such as Germany, Finland, Luxembourg, New Zealand and the United Kingdom have called on the Egyptian authorities to release all those arbitrarily detained for exercising their human rights or for politically motivated reasons.

    MIL OSI NGO

  • MIL-OSI United Nations: ‘No Appetite for Another Extension’ of South Sudan Peace Agreement, Mission Head Tells Security Council, Urging Leaders Focus on Benchmarks without Delay

    Source: United Nations 4

    The Revitalized Peace Agreement in South Sudan is facing challenges due to low political will, trust deficit among the parties to the accord and lack of predictable funding, the Security Council heard today from senior officials assisting peacebuilding in that country.

    Charles Tai Gituai, Interim Chairperson of the Reconstituted Joint Monitoring and Evaluation Commission — the official oversight body responsible for monitoring and evaluating the status of implementation of the 2018 Revitalized Peace Agreement — said that the parties in September 2024 agreed to extend the transitional period from 22 February 2025 to 22 February 2027, with elections rescheduled to December 2026.  While the National Election Commission has completed its plans and has opened offices in the 10 states, financial constraints remain a hindrance in election preparations.

    Further, election laws stipulate that parties with armed forces cannot be registered until they relinquish their forces — this includes the Sudan People’s Liberation Movement/Army in Opposition and others within the South Sudan Opposition Alliance, he said.  This underscores the need to hasten the unification of forces so that these parties can participate in the elections.  Also expressing concern about persistent levels of intercommunal violence in some parts of the country, he noted that the Sudan conflict exacerbates the humanitarian situation and has caused a huge influx of returnees and refugees in South Sudan.  Further, oil production — the country’s main source of foreign earnings — was disrupted in the second quarter of 2024 because of that conflict.

    Welcoming the work of the National Constitutional Amendment Committee and the Judicial Reform Committee, he said “the success of these institutions demonstrates that with funding availability, the Peace Agreement institutions and mechanisms can fully discharge their mandates”.  The permanent ceasefire continues to hold, though recent skirmishes in Western Equatoria State are concerning.  Commending the mediation talks ongoing in Nairobi, he said:  “The people of South Sudan are looking forward to a positive outcome for these talks and hoping that it will bring practical and enhanced transformative approaches in addressing the root causes of conflict.”  The Council must consider a visit to South Sudan to mobilize resources and political support to help South Sudan achieve its first democratic elections in December 2026, he added.

    Also addressing the Council was Nicholas Haysom, Special Representative of the Secretary-General and Head of the United Nations Mission in South Sudan (UNMISS), who noted that this month marks the beginning of the fourth extension of the Revitalized Peace Agreement.  “There is no appetite for another extension,” he stressed.  Rather, “there is strong desire for the leaders to focus on the benchmarks set out in the Peace Agreement without further delay”.  Urging parties to engage constructively, he acknowledged progress in some areas and welcomed the declarations of Governors to expand the civic and political space in their states.  Also noting expanded access to justice, including through mobile courts, he pointed to the adoption of a national community violence reduction strategy.  The National Elections Commission has launched its website and is rolling out a voter education strategy.

    However, none of these achievements “are sufficient to significantly move the needle” on the critical conditions required for holding elections and adopting a new constitution, he added.  Stressing the importance of “low-hanging fruit” measures such as voter registration, he reiterated that “the clock is already ticking on the extended transitional period”.  Noting that constitution and census timelines do not fit into the framework for a December 2026 election, he added:  “we have not yet seen the previously promised harmonized work plan with an operational timetable for elections.”  The lack of Government funding is slowing down these processes, he said, underscoring that “neither UNMISS nor the international community or the electoral management bodies can provide the full measure of support if these critical decisions are not taken.”

    “My country is struggling to transition from instability to stability through implementation of the R-ARCSS [Revitalised Agreement on the Resolution of the Conflict in South Sudan],” observed Edmund Yakani, Executive Director of the Community Empowerment for Progress Organization. Noting that the Tumani Initiative under Kenya’s co-mediation provides an opportunity for transitioning the country from violence to peace, he added:  “We are impressed by the process of embracing inclusive Government”.  The only option for a peaceful transition is through elections, he said, pointing to the citizens’ disappointment over the last elections postponement.  Noting that deadly intercommunal violence poses a challenge for the country’s transition, he said that elections will be credible if the Government creates conditions for holding them.

    For her part, the representative of South Sudan acknowledged the concerns about delays in the transition process and assured the Council that “every effort is being made to accelerate key milestones, particularly the preparations for free, fair and credible elections”.  Her Government is committed to providing the necessary funding and institutional support to advance the electoral process and has taken significant steps to draft a permanent constitution “that will reflect the aspirations of the South Sudanese people”, she pledged.  The deployment of the Necessary Unified Forces remains a priority, and South Sudan is working to overcome logistical and financial challenges to complete Phase II of training and deployment, she added.

    Urging all parties, including opposition groups, to negotiate in good faith within the framework of the Revitalized Agreement rather than seeking a parallel process that could complicate the peace road map, she expressed concern about the deteriorating situation in Sudan.  Recalling her country’s appeals to Sudan to cease harbouring rebels who actively destabilize its security efforts, she said this plea has gone unanswered.  “The people of South Sudan have been deeply affected by videos depicting heartless killings” of their nationals, she said, adding that these are believed to be incited by General Yassir Al-Atta, Assistant to the Commander in Chief, who claimed that 65 per cent of the Rapid Support Forces are South Sudanese.  Despite the anger provoked by this, her Government continues to call for restraint from its people, she said.

    As Council members weighed in, they stressed the need to advance progress towards elections.  The representative of Sierra Leone, also speaking for Algeria, Guyana and Somalia, highlighted the need for a credible and inclusive electoral process.  For that, security sector reform and disarmament, demobilization and reintegration of armed groups remains crucial.  He also called for urgent action to finalize transitional security arrangements and establish a middle command structure for the Necessary Unified Forces.  While the electoral road map’s implementation is critical for elections, consideration should be given to the participation of internally displaced people and returnees, he pointed out.

    Pakistan’s delegate, noting that elections have been rescheduled to take place in 2026, encouraged South Sudan to use the two-year extension to move towards a credible path to elections.  “This extension must not become a missed opportunity”, Greece’s delegate said, while Slovenia’s delegate urged the Government to secure the necessary funding for timely implementation of the Revitalized Peace Agreement.  “Promises must be turned into reality,” said Denmark’s representative, also calling for a clear elections plan and resources for election-related bodies.

    The representative of the United States said the transitional Government failed to conclude the transitional period and use public revenue transparently for public needs.  Despite significant international support, South Sudan’s President and other political leaders “have not demonstrated political will to seriously move towards elections”, he observed, adding:  “In fact, they have made efforts worse.”  While the 2005 Comprehensive Peace Agreement was a “pivotal moment in South Sudan’s history that brought hope to a people long ravaged by war and oppression”, two decades later, that country’s leaders failed to meet their people’s expectations.  He called on the transitional Government to start using public revenues for appropriate public purposes rather than to benefit the “small corrupt elite”.

    Panama’s delegate was one among several Council members who expressed concern over persisting sexual and gender-based violence, noting that women and girls, as young as 11, have fallen victims to this crime.  Hence, the Mission’ work is crucial, he stressed, highlighting the need for the equitable participation of women, young people and communities in peacebuilding.  The representatives of the Republic of Korea and France also expressed support for UNMISS, highlighting its many crucial roles, which range from enabling humanitarian assistance to assisting with election preparations.

    China’s delegate, Council President for February, speaking in his national capacity, said that, prior to the meeting, his country, using virtual technologies, conducted an underground inspection of the Mission’s work.  A new “batch” of Chinese peacekeepers have recently completed their rotation and handover, he reported.  He welcomed South Sudan’s steps towards elections and called on the international community to respect its sovereignty and ownership.  Further, “sanctions, such as arms embargo, are constraining security capacity building in South Sudan and should be adjusted or lifted”, he stressed.

    Along similar lines, the Russian Federation’s delegate said that sanctions make it difficult to strengthen South Sudan’s security and called for a review of the parameters of the arms embargo.  Voting issues are South Sudan’s internal affairs, he observed, adding that the country’s leadership has managed to establish relative stability and attain progress in State-building and resolving security issues.

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