NewzIntel.com

Category: Asia

  • MIL-OSI Australia: Helping charities and strengthening communities

    Source: Australian Treasurer

    The Albanese Government is helping Australia’s 62,000 charities by ensuring that states and territories collaborate effectively with the federal government – reducing unnecessary paperwork.

    We’re taking the practical step of including representatives from all states and territories on the advisory board of the Australian Charities and Not‑for‑profits Commission (ACNC). This will include the greatest representation from state and territory governments since the Board’s inception in 2013.

    This move builds on the substantial body of work that Labor has done to support charities, and aligns with recommendations in the Productivity Commission’s landmark Future Foundations for Giving report.

    These strategic appointments aim to ensure the diverse interests of our communities are effectively represented, fostering a consistent national approach to regulatory and policy matters within the charity sector.

    The ACNC Advisory Board supports the Commissioner by offering informed advice on matters affecting charities and strengthening the governance and effectiveness of the sector.

    The new ex‑officio appointments will provide an additional layer of regulatory expertise, complementing the sector‑based members and enhancing the Board’s role as a forum supporting charity law, policy and regulatory reform.

    The new appointments to the ACNC Advisory Board are:

    • New South Wales – Ms Natasha Mann, Commissioner of Fair Trading and Deputy Secretary of Fair Trading and Regulatory Services, Department of Customer Service
    • Northern Territory – Ms Amanda Nobbs‑Carcuro, Executive Director, Industry Capability, Licensing and Migration, Department of Trade, Business and Asian Relations
    • Queensland – Ms Victoria Thompson, Deputy Director‑General, Harm Prevention and Regulation, Department of Justice
    • South Australia – Mr Brett Humphrey, Commissioner for Consumer and Business Services
    • Tasmania – Ms Robyn Pearce, Executive Director of Consumer, Building and Occupational Services, Department of Justice
    • Victoria – Ms Nicole Rich, Director of Consumer Affairs Victoria, Executive Director of Regulatory Services, Department of Government Services
    • Western Australia – Ms Patricia Blake, Commissioner for Consumer Protection, Department of Energy, Mines, Industry, Regulation and Safety

    The ACT is already represented on the board, with David Crosbie, CEO of the Community Council for Australia, reappointed in July 2023.

    This ensures that all states and territories will be represented in the national conversation about helping charities and reconnecting communities.

    These appointments reinforce the Government’s commitment to fostering a robust, well‑regulated charity sector that serves communities across Australia. It builds on our achievements to date. Since coming into government, the Australian Government has:

    • Improved the deductible gift recipient system by creating a new pathway for community foundations to access tax deductible status.
    • Streamlined the deductible gift recipient application process for environmental organisations, harm prevention charities, cultural organisations, and overseas aid organisations.
    • Introduced legislation to give the ACNC greater discretion to comment publicly on harmful breaches of compliance, to better support public trust and confidence in the regulatory framework.
    • Appointed a widely respected charity sector expert, Sue Woodward, to head the ACNC.
    • Refreshed the ACNC Advisory Board to be more representative of the charity sector, bringing First Nations, CALD and youth voices onto the Board.
    • Sent a clear signal that charitable advocacy is supported and welcomed by this government.
    • Worked with state and territory governments to streamline and harmonise fundraising rules across jurisdictions.
    • Funded a new General Social Survey with new questions on participation in volunteering and involvement in cultural events and cultural activities, and providing insights reflecting the impact of giving, participation, and purpose driven activity.

    Quotes attributable to Assistant Minister for Charities, Dr Andrew Leigh MP

    “Labor wants to minimise the time that Australia’s great charities spend doing paperwork, so we can maximise the energy they devote to helping the vulnerable, cleaning up the environment, helping people stay active, and connecting neighbours.

    “One of the best ways of achieving this is to ensure that all jurisdictions are working together on charitable regulation.

    “Bringing sector experts and regulators from all states and territories onto the advisory board of the charities commission will help charities by reducing regulatory overlap, and ensuring jurisdictions are working together to help charities and non‑profits thrive.”

    MIL OSI News –

  • MIL-OSI Security: CN25 tests partner nations fifth-generation capability

    Source: United States INDO PACIFIC COMMAND

    This year’s main focus is the relationship of the U.S. Air Force, joint services, Japan Air Self Defense Force and Royal Australian Air Force fifth-generation aircraft and strengthening the interoperability of allies. 

    “Cope North 25 is an opportunity for the USAF, RAAF and JASDF to integrate at a level of training that you can’t accomplish anywhere else,” said U.S. Air Force Capt. Bobby Evans, 134th Fighter Squadron electronic combat pilot. “The airspace here is unrestrictive, and the amount of time we are able to spend tackling problems together is a fantastic experience.”

    CN25 marks the first year where there are F-35A Lightning IIs from all three participating nations with the U.S. Marine Corps bringing in the F-35B Lightning II. 

    The F-35A Lightning II is the coalition forces’ latest 5th generation aircraft. This specific aircraft was designed to operate with its ability to survive in a contested environment, with its advanced avionics, situational awareness, aerodynamic performance and reduced vulnerability for the United States and partner nations. 

    “The number one goal of Cope North is the integration of the F-35 tactics between the three nations, Japan, Australia and the United States,” said U.S. Air Force Col. Charles Schuck, 3rd Wing commander. “We all use the F-35, so you would think that one airplane means that we do everything the same, but that’s an assumption we have to validate.” He went on to explain that each country operates in a unique way, which is why trilateral integration exercises such as CN25 are vital. 

    With a few days left of CN25, JASDF, RAAF, USAF and other joint nations continue to sharpen aerial warfighting integration, strengthening joint integration and partnership for a free and open Indo-Pacific. 

    MIL Security OSI –

  • MIL-OSI Security: U.S., ROK forces forge interoperability with combined arms exercise

    Source: United States INDO PACIFIC COMMAND

    It is only through robust cooperation between ROK and U.S. forces that defense against aggression on the Korean peninsula can be deterred or, if need be, repelled.

    This interoperability is forged through joint trainings, exercises and drills. A prime example of this took place between the U.S. and ROK forces Feb. 12-13, 2025.

    “A combined maneuver exercise took place with the 112th Mechanized Infantry Battalion, ROK Army Special Forces, the 25th Fighter Squadron and joint terminal attack controllers from the 607th Air Support Operations Group,” said U.S. Army Sgt. 1st Class Michael Murphy, 51st Fighter Wing ground liaison officer.

    The purpose of training, from the ground perspective, was for the 112th MIB to train on establishing and executing a hasty defense in response to a simulated attack, said Murphy. Additionally, ROKA Special Forces exercised their targeting and terminal guidance operations in coordination with U.S. air assets.

    “Opportunities to train in a combined environment can be limited, so training like this is incredibly important to the U.S.-ROK Alliance,” said Murphy. “The ability to work side by side increases our overall effectiveness by allowing one another to grow our understanding of our partners’ tactics and capabilities.”

    This training was a new opportunity from the aerial perspective as well, providing valuable experiences for members of the 25th FS.

    “This was really the only opportunity that I have seen that there has been actual live tanks out there playing as an opposition force that is postured against friendly infantry,” said U.S. Air Force Lt. Col. Justin Davis, 25th Fighter Squadron commander. “It helped us practice how we would actually fight. If we get called for close air support it could be for a U.S. unit or a ROK unit. It helped them understand what support we can provide and it helped us understand what kind of support they might need.”

    Increased tactical proficiency is crucial to effective mission completion, but is not the only benefit that was seen from this exercise.

    “It makes us better at our job of close air support, but more than that it showcases that we have a strong alliance, that we put a lot of time and effort into maintaining the alliance and strengthening those bonds, even at the lowest tactical level,” said Davis. “From the 7th Air Force and U.S. Forces Korea, all the way down to the squadron level, we are integrating to improve our ability to support each other if war were to come.”

    MIL Security OSI –

  • MIL-OSI Security: 38th Air Defense Artillery Brigade Strengthens Bonds with Japanese Ground Self Defense Force through Co-Op Program

    Source: United States INDO PACIFIC COMMAND

    During the visit, JGSDF Soldiers were provided an in-depth mission briefing on the sophisticated integrated air and missile defense systems of the brigade, which included insights into the capabilities of the mobile interceptor missile – 104 surface-to-air missile system Patriot and the terminal high altitude area defense systems. This knowledge-sharing initiative is pivotal to bolstering the interoperable defense architecture between the United States and Japan, showcasing a unified stance against a myriad of aerial threats.

    As tensions and strategic interests heighten across the Indo-Pacific theater, such collaborations are pivotal to ensure shared understanding and interoperability among allies. The Co-Op Program, spanning nine compelling weeks, immerses JGSDF members in the nerve center of U.S. Army operations at Camp Zama, the heart of U.S. Army Japan’s mission to safeguard peace and security in the region.

    During their stay, JGSDF soldiers did not only gain insights into the operational imperatives of the 38th ADA brigade but also engaged in intensive language training designed to facilitate seamless communication in mission-critical scenarios. Each participant is paired with a counterpart from a different unit at Camp Zama, who guides them through their daily responsibilities, promoting a hands-on experience of the U.S. Army’s rigorous duties and responsibilities.

    This holistic approach to exchange and cooperation underscores the U.S. Army’s commitment to deepening ties with its Japanese partners. By fostering such interpersonal and professional relationships, the 38th ADA brigade and USARJ are paving the way for a resilient and responsive integrated defense force, ready to confront the challenges of the 21st century.

    The 38th Air Defense Artillery Brigade is a key component of the 94th Army Air and Missile Defense Command, U.S. Army Pacific, strategically forward-deployed and tasked with the vital mission of integrated air and missile defense in Japan as well as across the Indo-Pacific region. With a focus on readiness, modernization, and integration, the brigade stands at the forefront of strategic defense operations, ensuring peace and stability through unwavering vigilance and strong alliances.

    MIL Security OSI –

  • MIL-OSI China: Cross-border telecom fraud gang stands trial

    Source: China State Council Information Office 2

    A total of 23 defendants, including key members of several major telecom fraud groups based in northern Myanmar stood trial in China on multiple charges including crimes that had killed 14 Chinese nationals and injured six others.

    Members of a telecom fraud criminal gang stand trial at Wenzhou Intermediate People’s Court in Zhejiang province. The six-day trial closed on Wednesday. [Photo/Xinhua]
    A local court in Wenzhou, east China’s Zhejiang Province, heard the case from Feb. 14 to 19.
    The defendants included Mg Myin Shaunt Phyin and Ma Thiri Maung, ringleaders of a criminal gang led by their family, as well as major members of the gang and members of other related gangs who served as the “sponsors” of the family’s criminal activities.
    They were facing 11 counts of criminal charges including fraud, intentional homicide, intentional injury, illegal detention, operating casinos, drug trafficking, and organizing prostitution.
    According to the prosecutors, the defendants took advantage of the family’s influence in relevant areas in northern Myanmar and set up several compounds to house criminal gangs, providing armed protection for the operations of the “sponsors” and colluding with them in relevant crimes, such as telecom fraud schemes targeting people in China.
    The gambling and fraud crimes involved funds of more than 10 billion yuan (about 1.4 billion U.S. dollars) and caused the deaths of 14 Chinese nationals and injuries to six other Chinese, the indictment said.
    In a high-profile incident, on Oct. 20, 2023, the gang, in collaboration with the “sponsors,” organized armed escorts to relocate people working for their gangs in an attempt to evade an upcoming crackdown.
    During the relocation, some individuals attempted to escape but were shot by the armed escorts, resulting in multiple deaths and injuries.
    At the trial, prosecutors presented evidence and each defendant and their lawyers examined it. Both sides gave their respective accounts, and the defendants made their respective final statements.
    More than 100 people, including Chinese legislators, political advisors, journalists, family members of those involved, and members of the public, observed the court proceedings.
    The verdict will be announced in due course.
    In addition to the latest trial, several thousand other suspects linked to the criminal groups have been put under investigation after they were linked to more than 10,000 reported telecom fraud cases.
    A prior official statement emphasized that the handling of the case reflects China’s dedication to protecting the legitimate rights and interests of the nation and its citizens.
    The crimes partially took place within Chinese borders, specifically targeted Chinese citizens, and jeopardized the shared interests of the international community, thus granting China jurisdiction under its Criminal Law and international treaties, according to procuratorial sources. 

    MIL OSI China News –

  • MIL-OSI China: ‘Ne Zha 2’ premieres in Macao as box office soars

    Source: China State Council Information Office 3

    Chinese mainland’s animated blockbuster “Ne Zha 2” premiered on Wednesday night in Macao and was officially scheduled to hit Macao theaters on Saturday.

    The film premiered in Hong Kong on Tuesday and garnered significant attention in both Hong Kong and Macao.

    A sequel to the 2019 hit “Ne Zha,” “Ne Zha 2” gained wide popularity thanks to its contemporary re-imagination of Ne Zha, a well-known mythical figure with extraordinary powers, and via its intriguing plot twists.

    “Seven cinemas and 42 Macao screening rooms have scheduled 60 screenings of ‘Ne Zha 2,’” said Ding Kai with the Sil-Metropole Organization Ltd., a co-distributor of the film, adding that more shows will be added in the coming days.

    Leong Wai Man, head of Macao’s Cultural Affairs Bureau, said that this film’s success will inspire Macao’s cinema industry to focus more on Chinese culture as a theme in the future, creatively incorporating cultural elements into animated films and other audiovisual works.

    With a long history, Macao’s Ne Zha beliefs were listed in 2014 as part of China’s national intangible cultural heritage.

    A Macao resident named Pang told Xinhua he was looking forward to watching the premiere with his family to see Ne Zha’s charm.

    Since its release in the Chinese mainland during the Chinese New Year, “Ne Zha 2” has proved a smashing success at the box office, with total earnings worldwide, including pre-sales, surpassing 12.3 billion Chinese yuan (1.72 billion U.S. dollars) as of Tuesday evening.

    This figure positions the film ahead of “Inside Out 2,” making it the highest-grossing animated film globally. 

    MIL OSI China News –

  • MIL-OSI China: Major members of northern Myanmar telecom fraud syndicates stand trial

    Source: China State Council Information Office 2

    A total of 23 defendants, including key members of several major telecom fraud groups based in northern Myanmar stood trial in China on multiple charges including crimes that had killed 14 Chinese nationals and injured six others.
    A local court in Wenzhou, east China’s Zhejiang Province, heard the case from Feb. 14 to 19.
    The defendants included Mg Myin Shaunt Phyin and Ma Thiri Maung, ringleaders of a criminal gang led by their family, as well as major members of the gang and members of other related gangs who served as the “sponsors” of the family’s criminal activities.
    They were facing 11 counts of criminal charges including fraud, intentional homicide, intentional injury, illegal detention, operating casinos, drug trafficking, and organizing prostitution.
    According to the prosecutors, the defendants took advantage of the family’s influence in relevant areas in northern Myanmar and set up several compounds to house criminal gangs, providing armed protection for the operations of the “sponsors” and colluding with them in relevant crimes, such as telecom fraud schemes targeting people in China.
    The gambling and fraud crimes involved funds of more than 10 billion yuan (about 1.4 billion U.S. dollars) and caused the deaths of 14 Chinese nationals and injuries to six other Chinese, the indictment said.
    In a high-profile incident, on Oct. 20, 2023, the gang, in collaboration with the “sponsors,” organized armed escorts to relocate people working for their gangs in an attempt to evade an upcoming crackdown.
    During the relocation, some individuals attempted to escape but were shot by the armed escorts, resulting in multiple deaths and injuries.
    At the trial, prosecutors presented evidence and each defendant and their lawyers examined it. Both sides gave their respective accounts, and the defendants made their respective final statements.
    More than 100 people, including Chinese legislators, political advisors, journalists, family members of those involved, and members of the public, observed the court proceedings.
    The verdict will be announced in due course.
    In addition to the latest trial, several thousand other suspects linked to the criminal groups have been put under investigation after they were linked to more than 10,000 reported telecom fraud cases.
    A prior official statement emphasized that the handling of the case reflects China’s dedication to protecting the legitimate rights and interests of the nation and its citizens.
    The crimes partially took place within Chinese borders, specifically targeted Chinese citizens, and jeopardized the shared interests of the international community, thus granting China jurisdiction under its Criminal Law and international treaties, according to procuratorial sources. 

    MIL OSI China News –

  • MIL-OSI China: Abu Dhabi to enhance trade, investment with China

    Source: China State Council Information Office

    The Abu Dhabi Department of Economic Development (ADDED) is currently leading a high-level delegation of 140 government and business leaders on an official visit to China. The visit, which commenced on Feb. 17, aims to further strengthen partnership with a leading economy and cement Abu Dhabi’s stature as a global magnet for talent, businesses and investment.

    The delegation is meeting with senior government officials, key businesses and investors in Beijing, Shanghai, Shenzhen and Hong Kong to explore business opportunities and foster strategic relations with their Chinese counterparts.

    During the visit, the Abu Dhabi Investment Office and the Abu Dhabi Global Market hosted the Abu Dhabi Investment Forum (ADIF) in Beijing on Feb. 18 under the theme “Invest with Abu Dhabi.” Meanwhile, an additional session of the forum will be held in Shanghai on Feb. 20.

    The ADIF features a comprehensive agenda, including keynote addresses, panel discussions and bilateral meetings with delegates representing various sectors of Abu Dhabi’s economy. Industry experts, including executives from institutions such as Abu Dhabi National Oil Company, Mubadala, HSBC and Gulf Capital, provided in-depth insights into the emirate’s investment landscape, showcasing opportunities in technology, financial services, health care and trade.

    Additionally, the Abu Dhabi Chamber of Commerce and Industry, in collaboration with the Shanghai Federation of Industry and Commerce, held the Business Connect-Abu Dhabi-Shanghai in Shanghai on Feb. 19. The event focused on strengthening economic relations and partnerships between the business communities in Abu Dhabi and China.

    Ahmed Jasim Al Zaabi, chairman of ADDED, said: “Our longstanding relations with China are going from strength to strength, as reflected by the growth of bilateral trade and mutual investments over the past few years, and we are doubling down our efforts to take it to the next level by deepening cooperation and exploring new opportunities in various sectors to create more partnerships.”

    He added: “We are eager to enable investors and businesses to benefit from ample opportunities provided by our soaring ‘Falcon Economy,’ which is harmonizing between advanced technologies, sustainability, human development and economic diversification as we accelerate the transition towards the next phase of Abu Dhabi’s development.”

    According to the data from ADDED, bilateral trade between China and the United Arab Emirates is projected to reach $200 billion by 2030. Abu Dhabi is already home to many of the over 6,000 Chinese companies operating in UAE’s key sectors including technology, financial services and energy. As such, the emirate continues to reinforce its position as the main gateway for Chinese investment in the Middle East and beyond.

    MIL OSI China News –

  • MIL-OSI China: US’ new tariffs worsen global prospects

    Source: China State Council Information Office

    U.S. President Donald Trump attends a press conference at the White House in Washington D.C., the United States, Feb. 13, 2025. [Photo/Xinhua]

    After US President Donald Trump’s first punitive tariffs targeted the United States’ major trade partners — Mexico, Canada and China — tariff threats are shifting to the European Union, even the rest of the world. The tariff threats are also shifting from steel and aluminum to computer chips and pharmaceuticals.

    In the latest move, Trump said on Tuesday he intends to impose auto tariffs “in the neighborhood of 25 percent” and similar duties on semiconductors and pharmaceutical imports.

    The US has a major trade deficit with many other trading economies, including Germany, Japan, the Republic of Korea and Vietnam, which are likely to be in the firing line later, if not soon.

    A tariff is a tax levied on imported goods and services. In its haste to target the three countries, the Trump administration has ignored concerns about these tariffs fostering inflation or snarling global supply chains. This is a serious mistake on the part of the administration. In the US, wholesale prices are already rising on higher food and energy costs, adding to the growing pile of bad inflation news ahead of more US tariffs. Globally, these risks are real, costly and damaging.

    As the new US administration has been launching another tariff war, China’s economy has been showing progressive signs of stabilization — especially since the fourth quarter of 2024, as the impact of the November stimulus measures has kicked in. During this period, growth accelerated from 4.6 percent to 5.4 percent to reach 5.0 percent year-on-year in 2024, which prompted the International Monetary Fund to recently upgrade China’s GDP growth.

    But what’s fueling these gains?

    China’s industrial production has proved resilient on the back of both domestic and international demand, particularly in electric vehicles and solar panels. The most prominent part of the growth story is the strong expansion of China’s advanced technology, electronics and automobile sectors. The pace of development in industrial robotics is almost as strong, while consumption is being fueled by equipment and durable goods upgrade.

    Yet two main challenges remain. At home, the nearly 11 percent decline in real estate investment suggests the property market is still ailing. But in about 300 Chinese cities, the decline of residential inventory is slowing.

    The external challenges China faces include the impending trade and tech wars, which the first Trump administration launched in 2017, the Biden administration expanded and the new Trump administration is broadening worldwide.

    On Feb 1, Trump imposed 25 percent tariffs and 10 percent duties on energy products imported from Canada and Mexico, and 10 percent tariffs on Chinese goods. The three countries are the US’ biggest trade partners and the US has a trade deficit with each one of them. These tariffs alone would cost an average US household more than $1,200 a year.

    After separate talks between Trump and the Canadian and Mexican presidents, the US agreed to delay levying the extra tariffs for 30 days. But the threatened tariffs on Canadian and Mexican goods, if they are imposed, could reduce long-run GDP by 0.3 percent.

    Moreover, a trade war between the US and its two largest trading partners would hit incomes in the US, impact employment and accelerate inflation. As Trump’s tariffs went into effect against China, Beijing announced a broad package of economic measures against Washington on Feb 10. And more countermeasures are likely to follow.

    Half a decade ago, the US’ punitive tariffs on Chinese goods covered goods worth $396 billion, or more than 90 percent of the total trade. But the first round of Trump’s tariffs against Canadian, Mexican and Chinese goods alone will cover far more traded goods in dollar terms.

    Trump’s four tranches of tariffs on Chinese goods in 2018-19 covered imports worth $360 billion. Today, Canada and Mexico and China account for more than two-fifths of all US imports. New tariffs on the goods imported from the two countries plus additional tariffs on Chinese goods would likely cover imports valued at more than $1.3 trillion. That’s more than 3.5 times the value than half a decade ago.

    This might be just the opening salvo in a series of tariffs the Trump administration is likely to announce in the coming weeks. Factor in the potential/likely retaliatory tariffs and duties by the affected countries and the Trump administration’s “reciprocal tariff” plan, and the final toll could be much higher.

    Ironically, US tariffs are legitimized by a flawed victimization narrative in which Washington is portrayed as a target of wrongful economic and geopolitical measures. In reality, the US’ imposed tariff levels are about geopolitical coercion, not economic factors.

    The threatened wave of tariffs could further heighten trade tensions, reduce investments, hit market pricing, distort trade flows, disrupt supply chains and undermine consumer confidence. In fact, much worse could happen.

    Due to the new US tariffs, we are in for a far costlier, global déjà vu all over again.

    MIL OSI China News –

  • MIL-OSI USA: WATCH: Luján Calls Out Republican Budget That Will Increase Everyday Costs for American Families

    US Senate News:

    Source: US Senator for New Mexico Ben Ray Luján
    Senate Republicans are pushing a partisan budget resolution that will make it harder for families to afford their health care, put food on the table, and get a quality education

    Video of the speech is available HERE.
    Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), a member of the Senate Committee on the Budget, delivered a floor speech calling out Republican plans to dramatically cut funding for programs that all Americans rely on like health, nutrition, and public services. He highlighted the staggeringconsequences for working families, including diminished access to health care and higher costs, at a time when federal employees are being illegally fired.
    Senator Luján’s full speech is available below: 
    Mr. President, over the past week, Elon Musk and Donald Trump have fired thousands of federal workers, many of them in New Mexico, without warning. The calls that I get to my office from constituents all across New Mexico express concern, surprise, and alarm. They don’t know what’s going to happen next. They’re worried about a project.
    A professional that I spoke to, who works for the Bureau of Indian Education and has a responsibility to help diagnose and support students with disabilities, asked, “Do I stay and help these kids? What’s going to happen with this stuff?”
    Now, whether it’s our neighbors who work to support the national labs to keep us safe, or friends who work at the United States Department of Agriculture helping our farmers and ranchers feed our nation, these illegal mass firings are impacting communities across every corner of New Mexico. Let me sum this up: what I keep hearing from New Mexicans every day is: Please help me. Speak up. Say something. Do something. Bring attention to what’s happening—to the harm that’s being caused in our communities, for all of our constituents.
    This isn’t about Democrats or Republicans. It’s about right or wrong. It’s about real people. Now, instead of protecting these jobs and helping our fellow Americans, Senate Republicans are pursuing a partisan budget resolution that will make it even harder for families to afford their health care, put food on the table, or get an education for their kids.
    Now, this is, quite frankly, chaos, and it’s chaos that the American people cannot afford. New Mexicans and Americans from all walks of life rely on the programs that Republicans are now attacking. These are programs that feed seniors, veterans, children, and the disabled. These are programs that house our veterans and keep folks warm during these winter months.
    And why are Republicans ripping these services away from people who need them? To fund this Trump tax scam—now it’s 2.0. The American people and constituents across New Mexico told me back in 2017, “This feels like a scam.” What Republicans are saying is that middle-class families are going to get everything in this tax cut. But what we saw play out was that if you were making millions of dollars, you did okay—you got the brunt of everything in this tax scam. Lying to the face of the American people. That’s what happened in 2017, and it certainly feels the same now.
    Now, let’s talk about one possible outcome of this budget resolution. In New Mexico, Medicaid covers 75% of births and supports around 92,000 children in my home state. Across the country, nearly 40% of babies are born with the help of Medicaid. For these babies and pregnant women, this program is vital—offering a chance to grow up healthier and have the best opportunity to succeed. We should all want that for our constituents. That’s not partisan.
    Now, unfortunately, Republicans have made it clear that they are determined to slash Medicaid. They tried it in 2017. When my Republican colleagues are interviewed and asked the question, “Are you going to cut Medicaid?” they certainly attempt, in every form and fashion, to say, “No, no, no, we’re not going to touch it—we’re just going to leave it up to the states.” Let me translate what that means.
    What Republicans in Congress are going to do is work to eliminate every federal dollar for Medicaid. There’s this acronym—FMAP—it’s a federal matching program to make Medicaid work across America. That’s what they’re going after. And if you visit with anyone across America who knows anything about how this program works, they will all tell you—without these federal dollars, this program goes away.
    This Republican budget resolution sets the stage for dismantling Medicaid, which could result in pregnant moms and babies losing health care. That’s just one possible outcome.
    As I said earlier, the American people deserve honesty and transparency. Look, I understand if my Republican colleagues want to do this. Just own up to it. Tell the American people what you want to do. Let them know. Just be honest with them. That’s the least the American people deserve.
    Last week in the Budget Committee, I offered a number of commonsense amendments to help lower costs for families, strengthen border security, safeguard health care, promote American manufacturing and businesses, and invest in public safety.
    Top of mind for many Americans, I offered an amendment to ensure that Elon Musk and his companies are not profiting off the same government that he’s dismantling. Elon Musk, who was not elected by the American people, is pursuing an extreme agenda to serve his own interests and greed—all while the American people are paying the price for it.
    If Republicans are serious about tackling the issues and lowering costs, let’s work together. You have partners here ready to do this for the American people. But my Republican colleagues know better than I that what’s happening under this president and Elon Musk is that the cost of goods continues to go up.
    I don’t know how many of you were at the grocery store this weekend in this chamber, but if you haven’t been—go by. Go by and try to buy some eggs. You will see a sign that limits you to maybe a dozen, maybe two, and you’re going to see the costs going up and up and up. Milk, butter—you look at it, you see it, you name it—it’s all increasing in price.
    What happened to President Trump saying on day one he was going to lower the cost of these goods for the American people? It’s not happening.
    Look, to sum this up—Americans will not be able to make ends meet if Senate Republicans dismantle the programs that make our country strong and secure to advance yet another tax scam.
    Thank you.

    MIL OSI USA News –

  • MIL-OSI China: China taps box office success to boost tourism

    Source: China State Council Information Office 3

    China’s film authorities launched a movie-themed tourism campaign at the China National Film Museum in Beijing on Feb. 17, riding the momentum of the country’s recent box office success to attract foreign tourists.

    The “China Travel with Chinese Films” campaign is launched at the China National Film Museum in Beijing, Feb. 17, 2025. [Photo courtesy of China Movie Channel]

    The “China Travel with Chinese Films” campaign aims to leverage growing international interest in Chinese cinema following a record-breaking Spring Festival movie season. Supported by the country’s expanded transit visa-free policy, the initiative promotes filming locations and cultural sites featured in popular Chinese movies, officials said at the launch event.

    The campaign, sponsored by the China Film Administration and China Media Group and organized by CGTN and the China Movie Channel Program Center, will promote a “film plus tourism” concept, encouraging international audiences to discover China through cinema while boosting tourism spending.

    The initiative will also nurture collaboration between the film and tourism industries by creating themed travel routes connecting filming locations with cultural heritage sites.

    During the 2025 Spring Festival season, six blockbusters generated 9.51 billion yuan ($1.32 billion) in ticket sales and drew 187 million viewers in seven days, according to box office tracker Maoyan Pro. The booming film market has sparked a growing interest in movie-related tourism centered on filming locations and cultural elements among domestic and international visitors.

    Ne Zha and Ao Bing performers dance during the “China Travel with Chinese Films” campaign launch at the China National Film Museum in Beijing, Feb. 17, 2025. [Photo courtesy of China Movie Channel]

    Among the blockbusters, the animated sensation “Ne Zha 2” has led the race and has continued its record-breaking run beyond the holiday season. So far, the film has grossed over 12.4 billion yuan, making it the highest-grossing Chinese film and animated feature of all time, surpassing both domestic and global box office records.

    Thus, “Ne Zha” has become the campaign’s promotional ambassador. A performer dressed as the animated character received a certificate onstage before joining another character, Ao Bing, for a dance performance inviting global audiences to explore China. The film’s influence has spread beyond theaters, sparking nationwide interest. Regions are competing to claim Ne Zha’s “hometown” status to boost local tourism, while related merchandise has sold out quickly.

    “‘Ne Zha 2’ is a visually spectacular comedy that tells a Chinese story, innovates traditional Chinese culture and continues the legacy of Eastern aesthetics,” said Wang Jing, the film’s executive producer. “With strong support from Chinese audiences, it aims to deliver a powerful voice of Chinese culture in the new era to global viewers.”

    Another Chinese New Year release making international inroads is “Detective Chinatown 1900,” which has grossed more than 3.2 billion yuan ($446 million) in China and opened in nearly 20 overseas territories, including North America, the United Kingdom and Malaysia.

    “Chinatowns have long served as windows for Chinese cultural exchange,” said producer Fan Xia, noting how the film showcases historic landmarks across these communities. “The ‘Detective Chinatown’ series, which tells their stories, has also demonstrated remarkable vitality in the field of cultural exchanges.”

    Representatives of Spring Festival films present their films’ achievements and tourist destinations during the “China Travel with Chinese Films” campaign launch at the China National Film Museum in Beijing, Feb. 17, 2025. [Photo courtesy of China Movie Channel]

    During the event, actor Anastasia Shestakova also invited international visitors to tour the film’s shooting locations in China, including a Native American village constructed in Xingtai, Hebei province, and a full-scale replica of various locations in 1900s San Francisco in Laoling, Shandong province. The 200,000-square-meter San Francisco set, built in just seven months at Laoling Film Studio, opened to the public during the Spring Festival, allowing moviegoers to explore the landmarks they saw on screen.

    Actor Nashi, who plays the female general Deng Chanyu in “Creation of the Gods II: Demon Force,” a film set in ancient China’s Shang dynasty, passionately shared insights about period artifacts preserved in museums across Henan and Shaanxi provinces.

    Besides the cities and attractions featured in the films, film studios and shooting locations have become popular cultural tourism spots. Representatives from China Movie Metropolis, Wuxi Studios, Western Film Group and Hengdian World Studios presented their production facilities advantages, industry policies and tourism offerings.

    Representatives of film studios present their production resources, facilities and tourism offerings during the “China Travel with Chinese Films” campaign launch at the China National Film Museum in Beijing, Feb. 17, 2025. [Photo courtesy of China Movie Channel]

    Several foreign cultural ambassadors and travel bloggers shared their China travel plans inspired by Spring Festival films at the event. Tourism and financial sector representatives offered promotional deals, while China Media Group announced its international bureaus would partner with Chinese filmmakers to expand the “China Travel with Chinese Films” campaign, attracting more overseas audiences.

    This Chinese New Year, the first since the Spring Festival was added to UNESCO’s Representative List of Intangible Cultural Heritage, has triggered increased overseas interest in traveling to China.

    Ma Yiliang, chief statistician at the China Tourism Academy, said the successful holiday films drove both domestic and international tourists to cities like Xiangyang and Yibin. Local products, including Hubei’s lotus root starch, saw sharp sales increases.

    “This wave of cultural tourism has not only enhanced brand recognition for local destinations but also generated significant economic benefits,” he said.

    MIL OSI China News –

  • MIL-OSI Australia: Interview – ABC Afternoon Briefing with Patricia Karvelas

    Source: Australian Ministers for Education

    PATRICIA KARVELAS: To discuss this, and there’s a whole lot more, let’s bring in our panel, Early Childhood Education Minister Anne Aly and Shadow Immigration Minister Dan Tehan. Welcome to both of you.

    MINISTER ANNE ALY: Thank you.

    DAN TEHAN: Thanks, Patricia.

    KARVELAS: We’re going to start on that. Dan, was that just a thought bubble? Because it’s unconstitutional, it’s been tested in the High Court.

    TEHAN: No, it wasn’t. I think there is a real frustration with how the system is currently working at the moment and how the courts are clogged up, how appeal after appeal is used. And I think what the Leader of the Opposition was expressing was that frustration that at some stage we are going to have a look at this.

    Now, the High Court obviously made a decision last year. So, you know, there does need to be a discussion around these issues because it would be good if we had clear rules and clear guidelines and clear laws as to how we can make sure that those people who do come to Australia do and know and understand our values and especially our laws.

    KARVELAS: But after you become a citizen shouldn’t you be dealt with by the law, and the law should deal with if you have a particular view, which, you know, is hate speech, isn’t that the law that should be dealing with it rather than just kicking people out?

    TEHAN: Well, I think what – you know, what we do need to look at is that a lot of these people have dual citizenship. And so we need to look and see, okay, if you’ve got dual citizenship and you breach your trust that the Australian people have given in you with regards to your Australian citizenship, well, if you’re a dual citizen, do you have the right to keep your Australian citizenship?

    KARVELAS: The High Court thinks yes.

    TEHAN: Well, the High Court made a decision last year. Now, obviously we can have a look at the way that they made that and the laws around that and see whether we do need to have a conversation around whether we need to change some of the laws around this and see whether if people do come here – and especially if they are dual citizens – whether we can act.

    KARVELAS: Anne Aly?

    ALY: I’m a bit – I’m a bit angry that this conversation about antisemitism has been conveniently turned into a conversation about immigration as if somehow the two are connected. I think that’s a very deliberate political ploy by Peter Dutton, who, I might add, has said that he wants to re-introduce the “golden ticket” visa, which can be bought by people with money and that we know brought in people from organised crime gangs and people of, frankly, unworthy character into Australia.

    So I would like to see us talking about the substantive issue here about hatred and the growth of hatred and the spread of hatred in our society. And when we have those conversations, not have those conversations hijacked by another conversation about immigration as if it’s only immigrants that are responsible for spreading hatred in this country. That’s what really disturbs me here, Patricia.

    KARVELAS: Anne Aly makes a point about the fact antisemitism is a lot wider than anyone who may have come to this country more recently. It is clearly a big problem. Isn’t that what you really want to deal with?

    TEHAN: Well, we have been dealing with that, and we have been appealing to the government now for a very long period of time to deal with that and deal with it right across this nation. So I don’t think you can say that all of a sudden we’ve just made this about immigration. This is an issue which the Leader of the Opposition has led the nation on in trying to rid this country of antisemitism. And it is about ridding it right across our nation, whether it be Australian citizens, whether it be dual citizens, whether it be those who are here as guests of our nation. And I don’t think that we can say all of a sudden that this has just had a narrow focus to it, because his leadership on this issue has been inspiring and outstanding. And so to just try and narrow cast it like that is completely and utterly wrong.

    KARVELAS: But Peter Dutton even questioned why a male nurse – this male nurse got citizenship. I understand that actually happened when the Morrison government was in power.

    TEHAN: Well, what Peter Dutton has said is that we do need to look as to how this has happened. And there will be –

    KARVELAS: But it did happen under –

    TEHAN: Yeah, yeah. There are incidences where this will have happened under Labor, under Liberal. But what we do need to do is look at it and say, okay, where is the system failing? How are we getting people coming into our country with these views when they’re required to take a citizenship pledge, we should be looking, okay, what do we do to try and fix this system. And that’s the point that he’s trying to make, because there is a frustration.

    KARVELAS: Anne Aly?

    ALY: I want – I just want to make this point. When you say, Dan, people coming into this country with these views, what if people are coming into this country as children – and I’m the Minister for Early Childhood, I see a lot of children, and let me tell you, they don’t – they’re not born with hate. They’re not born hating, right? People who are coming to this country may not be necessarily coming with those views. They may form those views because of this country, right?

    So what are we doing more broadly in this country to ensure that we have a society that is cohesive and that is harmonious and that we don’t tolerate hatred? When we talk about that, we talk about the concrete steps that our government has done to ensure that – the doxing laws, the hate speech laws, standing up against racism in all its forms and expressing our contempt for hatred.

    You know, I think it’s a very simplistic view to say that migrants come into Australia with a particular view and therefore that the whole situation that we’re talking about here around the increase of hatred is somehow linked to immigration.

    TEHAN: But that’s not what we’re saying. We’re saying –

    ALY: But it’s exactly what you just said.

    TEHAN: We’re saying that is one component of it. We’ve also called for a proper National Cabinet meeting to address this issue, so it can be –

    KARVELAS: Well, there was. There was one.

    TEHAN: Yes, but it was one which wasn’t done with all the chief ministers, all the leaders there, you know, everyone coming to Canberra – a proper serious discussion as to how we address this.

    KARVELAS: I have to bring our viewers on Afternoon Briefing here on the ABC News channel some breaking news: a Chinese fighter aircraft has released flares in front of an Australian military plane during what Defence describes as an unsafe and unprofessional interaction in the South China Sea this week. Officials have revealed the encounter occurred on Tuesday during daylight hours with the Peoples Liberation Army J-16 coming within 30 metres of the RAAF P-8 Poseidon. Defence says no personnel were injured and there was no damage to the P-8, but it has lodged formal objections with the PLA, both in Canberra and Beijing. So that’s just breaking news.

    I am aware – and I always think, to be fair, you would just be hearing perhaps that news too. But just quick thoughts from you both. Obviously Defence has sent a pretty strong signal here that this is unacceptable.

    TEHAN: And let’s see what sort of signal now the Prime Minister sends, because that’s what I think the Australian people will be waiting for and wanting to hear, what sort of strong signal and strong message now the Prime Minister sends. So, as we’ve seen, this is not the first time that this has occurred. So I think we will all watch with great interest to see how the Prime Minister responds to this, this act by the Chinese military.

    KARVELAS: Anne Aly?

    ALY: My first thought, of course, is relief that nobody was hurt and nobody was injured, Patricia. That’s my first – my first reaction to this news.

    KARVELAS: Do you expect the Prime Minister will have strong words?

    ALY: Absolutely. Absolutely. This is a pretty serious issue, and I absolutely expect that the Prime Minister will stand up for the Australian people, as he always has done.

    KARVELAS: Now, there is another piece of breaking news, which is that your child care bill has just passed.

    ALY: Yes.

    KARVELAS: You know this?

    ALY: Yes.

    KARVELAS: Okay, what can you tell us?

    ALY: So this is a great bill. It is good policy –

    KARVELAS: This is the three day –

    ALY: This is the Three Day Guarantee, 72 hours a fortnight for every child. What it basically does, Patricia, is it replaces the activity test, and parents out there who have tried to access subsidised care will know that they have to pass an activity test in order to be eligible to subsidise that care. It means that every child in Australia can now access those really transformative benefits of early childhood education and care. And it is good policy. It was recommended by the PC Review, a number of reviews, and has strong, strong support from across the sector. It’s a good day today for Australian children.

    KARVELAS: It didn’t have to pass now, though, did it? I mean, it really could have happened after the election. Was it a political – is it a political play –

    ALY: Well, no.

    KARVELAS: – so you can talk about this at the election and say, “We got this through,” because it doesn’t start till next year, right?

    ALY: That’s right. But, you know, it’s something that had strong support from the sector and it was a recommendation by the PC Review. You know, this is us taking action on things that we know are good policy, part of our reform package in early childhood education and care, getting to that place of a universal system that benefits every child.

    KARVELAS: Dan Tehan, you are actually a former Education Minister so you are across these portfolios. I understand at the end the Liberals were not in favour of this change. But actually it is true that there has been a lot of research to say that this change should happen to get children to have the right to have these three days compulsory. Why didn’t you see it that way?

    TEHAN: So just a question before, Patricia, I answer that question. So, are we talking about it just passing the House? Or –

    KARVELAS: I think it just passed the House –

    ALY: It passed the Senate – it’s in the Senate at the moment. So, I know – but it did pass the House earlier.

    KARVELAS: It’s going back to – yeah.

    TEHAN: Yeah, so it’s – just so your viewers are clear of where we’re at, it’s passed the House. It hasn’t passed the Senate, and it’s actually going to a Senate review which, as I understand it, will report in March. So this legislation –

    ALY: I think they’re actually voting on it in the Senate.

    KARVELAS: Yeah, my understanding is it’s passed the Parliament. But either way –

    TEHAN: Right, okay.

    KARVELAS: – I’ll let you continue with the broad political point.

    ALY: Last I saw was they were voting on it.

    TEHAN: So they are going to now go ahead? So this is sort of –

    KARVELAS: So, you can still apparently do the inquiry even if the Bill’s passed.

    TEHAN: Right, okay. All right. Well, there’s obviously been a change in the approach that the government’s taking as we’re speaking.

    KARVELAS: Let me take you to first principles.

    TEHAN: Yes, let’s go back to the Bill itself. We obviously wanted it to go to an inquiry. And the main concerns that we have with this Bill is that the actions that it’s taking, especially with regards to the activity test, without expanding the number of places, and especially the number of places in regional and rural areas, will basically mean for those people who are working or wanting to work, trying to get access to child care will become harder. And so that is one of the concerns that we have.

    The second concern is that what we’ve seen with regards to costs under this government when it comes to child care is we’ve seen the costs go up by over 20 per cent. We’ve seen out-of-pocket expenses go up by over 10 per cent and nothing around this is addressing that issue, which obviously, with cost of living the number one issue, is of deep concern to us. So for those reasons and others is why we think that this Bill should have gone to a committee.

    KARVELAS: Anne Aly?

    ALY: Well, those figures are just wrong, Dan. The cost has come down. Out-of-pocket costs for families across Australia have come down. And in terms of access, yes, we know that access is one of those key areas of reform. That’s why we have a $1 billion Building Early Education Fund targeting those seats, those areas where there is no child – early childhood education or where there is little access to early childhood education and care.

    So, you know, you’re talking to a government that’s able to chew gum and walk at the same time. We’re very well aware of all the key pieces of reform that are necessary in early childhood education and care, and only our government has that vision to ensure that every child has access and every child has access to quality, affordable early learning.

    KARVELAS: I have to ask –

    TEHAN: Anne, I was just going to say, your track record, sadly, doesn’t show that to be the case. So – and the problem here is that what we’re going to see is basically working people having to compete with new entrants now, and that’s going to cause even more trouble for you.

    KARVELAS: Now, Dan Tehan, I just have to ask you, just to you before we say goodbye – we’ve had a great conversation; it might be the last day of the Parliament of this term. We don’t know. But it’s –

    ALY: Don’t know.

    KARVELAS: Well, you don’t know. We don’t know. So, it’s rather – we’re all on the edge of our seats. But I do have to ask you about – you’re a former Trade Minister as well. You’ve had a few hats, so you’re very helpful here. Was Australia so desperate to hang on to our tariff exemption with the US that we agreed to unofficial quotas?

    TEHAN: No. No.

    KARVELAS: Well, hang on a minute. That’s been reported that that’s what we agreed to. That’s what the US Government thinks.

    TEHAN: So the arrangement was very clear. We were given an exemption, and obviously the US said to us that we wouldn’t want to see you exploit that exemption. And we had no intention of trying to exploit that exemption. The majority of our aluminium exports actually go into Asia, and that’s been a longstanding market for us.

    KARVELAS: But did we agree to these, essentially, quotas that we didn’t publicise?

    TEHAN: No, there was no – no, there was no quotas that weren’t publicised. So –

    KARVELAS: But it was agreed to then?

    TEHAN: Well, the idea – well, after the exemption, what the US wanted to make sure was all of a sudden our exports didn’t go from 10 per cent to 90 per cent. And obviously given that we were given an exemption we said that of course we’re going to make sure that that isn’t exploited, and it was never going to be exploited because the majority of our aluminium goes into our markets in the – in Asia.

    KARVELAS: So that agreement, shouldn’t we know – shouldn’t we have known about it? Shouldn’t you have told the public? Because we didn’t know about it till now.

    TEHAN: Well, it’s – there was no official agreement to tell the public about. I mean, the key thing here and the key thing that I would say to the Albanese Labor government is we worked very hard to be able to put an exemption in place which meant that our aluminium smelters here continued to be profitable and continued to be able to export aluminium into Asia, into the US.

    KARVELAS: Okay.

    TEHAN: My hope is that this government will be able to do exactly the same thing.

    KARVELAS: Anne Aly?

    ALY: Well, I think we’ve already proven as a government that we have the capacity, and we do the necessary actions to rebuild our international standing and rebuild our standing in terms of trade as well as diplomatic efforts, and I think the Australian people can be confident that this is a government that can, you know, deal with these issues. And in a transparent way.

    TEHAN: And we hope so, yes.

    KARVELAS: Well, the country hopes so. Thank you to both of you.

    TEHAN: Pleasure.

    KARVELAS: It’s been a good discussion.

    ALY: Thanks, Patricia.

    MIL OSI News –

  • MIL-OSI New Zealand: Child Poverty – Save the Children: Urgent investment needed in low-income families, particularly sole parent households – Save the Children

    Source: Save the Children

    Save the Children is calling on the Government to commit to investing in policies to lift more children and whānau out of poverty following the release of today’s latest child poverty statistics that show no progress on meeting targets over the past year, and particular groups of children more at risk.
    Child Poverty Statistics for the year ending June 2024 released today by Stats NZ show the number of children experiencing hardship in their everyday lives has largely remained the same, with specific groups of children – including mokopuna Māori, Pasifika and disabled children and those living in sole parent households – particularly impacted by poverty.
    The cost of housing continues to push many families into poverty, with one third of low- income families spending more than 40% of their income on housing, compared to an average of 20% for all households. Today’s figures do not include those children and families living in emergency housing, the hardest end of poverty.
    “Child poverty is complex and needs political commitment and investment across all governments if we are to achieve real change and enable all children in Aotearoa to thrive,” says Save the Children New Zealand’s Advocacy and Research Director Jacqui Southey.
    “If we are to meaningfully reduce child poverty levels, we must be committed to meaningfully lifting the incomes of low-income families, including lifting welfare levels, and tackle the availability and cost of housing for all New Zealanders whether renting or owning their own homes.
    “We cannot be trapped into seeing this as a single term or single government issue. And most importantly, we must not give up.”
    Ms Southey says the data across the reporting period from 2018 shows a lift in poverty levels since 2021, although the primary measures remain lower than, or at, the 2018 baseline.
    “Although there is no statistically significant difference to report, the graphs show that over time we are no longer moving the dial in the right direction and this is extremely concerning.
    “We cannot ignore that one in four of our children are living in material hardship and one in five are living below the poverty line after housing costs in Aotearoa. For each of these numbers, a real child is experiencing the everyday hardships of not having enough.
    “For particular groups of children, this number is much higher. Pasifika children continue to experience poverty at a higher rate than other groups of children. It is essential that we understand the why of these statistics so we can make the necessary changes to ensure Pasifika children do not lead lives disadvantaged by poverty.”
    Ms Southey says children living in sole parent households are also significantly impacted by child poverty. Nearly 80% of households living on the lowest incomes are sole parent households, on average living on a disposable income of less than $46,000.
    “By any measure this is a shockingly low-income level for a family and is directly contributing to levels of child poverty in Aotearoa New Zealand,” she says.
    “It is not acceptable that our economic systems are set up to push sole parent families into poverty, this is a critical area for change.”
    Save the Children is calling for targeted policies and investment to significantly improve support for sole parent families that would ease the economic burden they are living under.
    About Save the Children NZ:
    Save the Children works in 120 countries across the world. The organisation responds to emergencies and works with children and their communities to ensure they survive, learn and are protected.
    Save the Children NZ currently supports international programmes in Fiji, Cambodia, Bangladesh, Laos, Nepal, Vanuatu, Solomon Islands and Papua New Guinea. Areas of work include child protection, education and literacy, disaster risk reduction and climate adaptation, and alleviating child poverty.

    MIL OSI New Zealand News –

  • MIL-OSI USA: Readout of Secretary of Defense Pete Hegseth’s Call With Thailand Deputy Prime Minister and Minister of Defence Phumtham Wechayachai

    Source: United States Department of Defense

    Pentagon Press Secretary John Ullyot provided the following readout:

    Secretary of Defense Pete Hegseth and Thailand Deputy Prime Minister Phumtham Wechayachai held an introductory call this morning to reaffirm our shared commitment to the long-standing U.S.-Thailand alliance and over 192 years of friendship between our nations. The leaders discussed opportunities to strengthen the bilateral defense alliance, including expanding military exercises and deepening cyber and defense industrial base cooperation. The Secretary conveyed his appreciation for Thailand’s support of U.S. presence in the region, and reaffirmed the U.S. commitment to Thailand’s military modernization and professional military education in the United States.

    MIL OSI USA News –

  • MIL-OSI New Zealand: Most common registered family names in 2024

    Source: New Zealand Government

    Minister of Internal Affairs Brooke van Velden is pleased to announce the most common family names given to newborns in 2024. 
    “For the seventh consecutive year, Singh is the most common registered family name, with over 680 babies given this name. Kaur follows closely in second place with 630 babies, while Smith rounds out the top three with 300 babies sharing the family name,” says Ms van Velden.
    “A decade ago, in 2014, Smith was the most common registered family name, followed closely behind by Wilson and Brown. 
    “New Zealand is a diverse country – and it’s great to see that reflected in our family name data for 2024.
    “Family names are a real gift for all children, as they reflect the rich history of each family they originate from.
    “In the North Island, Singh, Kaur and Patel were the most common registered family names. In the South Island Kaur, Singh and Smith took the top spots.”
    The family name Singh has a long history, originating from the Sanskrit word for ‘lion.’ It is traditionally used by Sikh men and has become a common family name among the global Indian diaspora.
    As New Zealand’s diversity continues to grow, it’s important all New Zealand parents—both in the country and those living overseas— ensure their children are registered in New Zealand.
    “It’s important to remember that Kiwi babies born overseas must be registered as citizens by descent to ensure they have full access to citizenship rights, including the ability to obtain a passport,” says Ms van Velden.
    Every year the Registrar-General shares the most popular baby names by gathering information from SmartStart. The site is a quick and free way to register your child. It also has guidance for families about their children’s first years, including information about what services and assistance may be available to families. Smartstart can be accessed here: https://smartstart.services.govt.nz/

    MIL OSI New Zealand News –

  • MIL-OSI Security: Memphis Man Sentenced to 270 Months for Sex Trafficking Conspiracy

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – Acting U.S. Attorney Michael M. Simpson announced that MACEO ROBERTS (“ROBERTS”), age 25, from Memphis, Tennessee, was sentenced on February 12, 2025 before United States District Judge Susie Morgan for conspiring to commit sex trafficking, in violation of Title 18, United States Code, Section 1594(c).

    According to court documents, in about Summer 2020, ROBERTS told his co-conspirators, Dominique Peeples and Jeremy Talbert, that he was making a lot of money acting as a pimp, and offered to teach them how to be pimps, as well.  After Peeples and Talbert agreed, ROBERTS “gave” Minor Victim 2, a minor female born in 2003 who had previously performed commercial sex acts under ROBERTS’s direction, to Peeples.  Thereafter, Minor Victim 2 introduced Talbert to Minor Victim 3, a minor female born in 2003, who began performing commercial sex acts under Talbert’s direction.

    During Summer 2020, ROBERTS, Peeples, and Talbert travelled throughout the southern United States, including the New Orleans area, with multiple females, including Minor Victim 2, Minor Victim 3, and Adult Victim 1, for the purpose of having the females engage in commercial sex acts.  ROBERTS taught Peeples and Talbert techniques to oversee and advertise a prostitution operation, including the amount to charge.  ROBERTS also reminded them to keep all of the proceeds.  During this time period, including while in New Orleans, Adult Victim 1 engaged in commercial sex acts at the direction and supervision of ROBERTS, while Minor Victim 2 worked for Peeples and Minor Victim 3 worked for Talbert.

    In about October 2020, ROBERTS assumed control over Minor Victim 3, and required her, not only, to work approximately fifteen hours per day performing commercial sex acts, but also to give him all the money she earned.  ROBERTS beat Adult Victim 1 in front of Minor Victim 3 to show Minor Victim 3 the consequences for not following his instructions.  ROBERTS also provided drugs and alcohol to the victims to control their behavior.

    In about October 2020, Talbert recruited Minor Victim 1, a fourteen-year-old female, to engage in commercial sex acts under his direction.  In about late October 2020, ROBERTS, Peeples, Talbert, Adult Victim 1, Minor Victim 1, and Minor Victim 2 travelled to New Orleans, where they stayed for several months. During this time, ROBERTS, Peeples, and Talbert supervised the commercial sex work of Adult Victim 1, Minor Victim 2, and Minor Victim 1, respectively.  ROBERTS imposed rules and quotas that Adult Victim 1 had to follow and, when she did not meet those quotas or expressed reluctance, ROBERTS threatened to beat and shoot her.

    In January 2021, ROBERTS beat Adult Victim 1 so badly that she required hospitalization in a New Orleans area facility. After Adult Victim 1’s hospital discharge, ROBERTS and Peeples told Adult Victim 1 and Minor Victim 2 that they would bring them home to Memphis.  Instead, ROBERTS and Peeples drove them to Houston and forced them to engage in commercial sex acts until they finally escaped.  ROBERTS and Peeples then returned to Memphis to look for Adult Victim 1 and Minor Victim 2 to punish them for escaping.  ROBERTS located Adult Victim 1, hiding in a hotel bathtub, and choked her.  He also threatened Minor Victim 2.

    Additionally, in about late January 2021, ROBERTS met and began recruiting Adult Victim 2 to perform commercial sex acts under his direction.  Adult Victim 2 did so until about April 2022.  During that time, ROBERTS repeatedly beat, threatened, and victimized Adult Victim 2, including in November 2021 at a New Orleans area hotel.  In about April 2022, shortly before his arrest, ROBERTS punched Adult Victim 2 so hard that he shattered her front teeth.

    U.S. District  Judge Susie Morgan sentenced ROBERTS to 270 months’ imprisonment.  Judge Morgan ordered that this sentence be run consecutively to any sentence imposed on a pending case for attempted murder and robbery in Marion County Superior Court in Indianapolis, Indiana.   Judge Morgan imposed a fifteen year term of supervised release following imprisonment. ROBERTS was ordered to pay $666,000 in restitution to the victims.  ROBERTS must also participate in the sex offender registration and notification program.  In addition, Judge Morgan imposed a $100 mandatory special assessment fee.

    Peeples and Talbert previously pleaded guilty to sex trafficking offenses.  Peeples’s sentencing is set for April 9, 2025, before Judge Sarah S. Vance, and Talbert’s sentencing is set for March 12, 2025, before Judge Lance M. Africk.

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

    The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, the New Orleans Police Department, and the Memphis Police Department with this matter. The prosecution of this case is being handled by Assistant United States Attorneys Maria Carboni of the Financial Crimes Unit and Jordan Ginsberg, Supervisor of the Public Integrity Unit.

    MIL Security OSI –

  • MIL-OSI USA: Duckworth, Hirono, Takano Renew Push to Prevent Atrocities like Mass Japanese American Internment from Happening Again

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth

    February 19, 2025

    [WASHINGTON, D.C.] – Today, on the anniversary of Executive Order 9066 that began the horrific internment of thousands of Japanese Americans during World War II, U.S. Senators Tammy Duckworth (D-IL) and Mazie K. Hirono (D-HI) and U.S. Representative Mark Takano (D-CA-39) re-introduced the Korematsu-Takai Civil Liberties Protection Act, a bill that would establish a clear legal prohibition against un-American policies that seek to imprison individuals solely on the basis of race, religion, nationality, sex, gender identity, sexual orientation, ethnicity or disability. As President Donald Trump and his Administration continue their dangerous efforts to whitewash and ignore our nation’s history, passing this bill would be a first step toward recognizing this dark chapter, honoring the families impacted and safeguarding vital freedoms that are supposed to protect all Americans against arbitrary imprisonment or detention with no due process, as happened to Japanese Americans during World War II.

    “Our nation must never forget or repeat the horrors thousands of innocent Japanese Americans experienced as prisoners within our own borders,” said Senator Duckworth. “While Donald Trump and his allies seek to suppress the dark chapters of our nation’s history, I’m proud to reintroduce this bill with Senator Hirono and Congressman Takano to reaffirm our commitment to upholding constitutional principles and safeguarding civil liberties in honor of Fred Korematsu and in remembrance of my dear friend and former colleague, Mark Takai. Only by recognizing our nation’s most shameful mistakes can we learn from them and help ensure horrific tragedies like these never happen again.”  

    “On this Day of Remembrance, we reaffirm our commitment to ensuring that blatant attacks on civil liberties, such as the incarceration of more than 120,000 Japanese Americans, never occur again,” said Senator Hirono. “Amidst continued attacks on vulnerable communities, I am proud to reintroduce this legislation to safeguard and protect our vital freedoms in honor of the legacies of Fred Korematsu and Congressman Mark Takai.”

    “It is only right that we introduce this bill with the Korematsu and Takai name on the Japanese American Day of Remembrance,” said Congressman Takano. “Their legacies of standing up for what is right and fighting for Japanese Americans incarcerated at the hands of our government is a reminder that human rights require a commitment from us all. I am proud to reintroduce this legislation to ensure the dignity of all people and so that the horror my family and tens of thousands of other Japanese Americans experienced never happens again.”

    This legislation is named in honor of the late U.S. Congressman Mark Takai from Hawai‘i for his long-time leadership on this issue prior to his passing, and Fred Korematsu, who bravely challenged the Civilian Executive Order in the Supreme Court that directed all people of Japanese ancestry be removed from designated areas on the West Coast.

    In 1942, the Lieutenant General of the Western Command of the Army issued Civilian Exclusion Order 34, which directed that all people of Japanese ancestry be removed from designated areas of the West Coast because they were considered to pose a threat to national security. Fred Korematsu challenged that Civilian Exclusion Order. However, on December 18, 1944, the Supreme Court upheld his conviction in Korematsu v. United States. The Non-Detention Act of 1971 sought to remedy this problem by repudiating the legal framework allowing the government to detain U.S. citizens by deeming them national security risks. However, the Non-Detention Act did not specifically bar detentions or imprisonment based on characteristics such as race or religion. The Korematsu-Takai Civil Liberties Protection Act would fix this problem once and for all.

    Along with Duckworth and Hirono, the Korematsu-Takai Civil Liberties Protection Act is co-sponsored by U.S. Senators Dick Durbin (D-IL), Tim Kaine (D-VA), Richard Blumenthal (D-CT), Alex Padilla (D-CA), Tammy Baldwin (D-WI), Brian Schatz (D-HI), Adam Schiff (D-CA), Ron Wyden (D-OR), Jack Reed (D-RI), Patty Murray (D-WA), Ed Markey (D-MA), Bernie Sanders (I-VT), Amy Klobuchar (D-MN), Peter Welch (D-VT), Catherine Cortez Masto (D-NV), Chris Van Hollen (D-MD), Cory Booker (D-NJ) and Tina Smith (D-MN).

    Along with Takano, the legislation is co-led by U.S. Representatives Doris Matsui (D-CA-07) and Jill Tokuda (D-HI-02).

    -30-

    MIL OSI USA News –

  • MIL-OSI United Nations: What is social justice and how is the UN helping to make it a reality worldwide?

    Source: United Nations 2

    Human Rights

    In recent years, the term “social justice” has become a significant part of public discourse, often invoked in discussions about equality, human rights, and societal reforms. But what exactly does social justice mean, and why is it so important?

    The United Nations supports the principle in multiple ways, from addressing economic inequality to access to education, healthcare, and the protection of human rights, with the aim of creating a world where everyone has the opportunity to thrive.

    Social justice is for everyone, which is why the UN pays attention to the needs of particularly marginalized and vulnerable communities, such as refugees, indigenous peoples and those living with disabilities.

    Social justice encompasses a wide range of issues which are highlighted as part of World Day of Social Justice marked annually on 20 February.

    Equity, solidarity, human rights

    The UN definition of social justice is “an underlying principle for peaceful and prosperous coexistence within and among nations.” This can be interpreted as a world in which societies are based on the principles of equality and solidarity, understand and value human rights, and recognize the dignity of every human being.

    The five key principles of social justice are often defined as:

    • the recognition that different people have different needs and circumstances (equity),
    • ensuring that everyone has access to the resources and opportunities they need to succeed (access),
    • enabling all individuals to play in role in the political, economic and social life of the communities (participation),
    • protecting the human rights of all individuals (rights) and
    • valuing and respecting differences between people, such as race, gender, and sexual orientation (diversity).

    Social justice is a cornerstone of the United Nations’ mission to promote peace, security, and human rights worldwide and is enshrined in the 2030 Agenda for Sustainable Development, an international blueprint for peace and prosperity.

    The Agenda is broken down into 17 ambitious Goals, which are due to be achieved in the next five years. Some progress has been made, particularly on the reduction of extreme poverty, and improved access to essential health services, but overall they are not on track.

    However, the Goals have been useful in providing UN Member States with clear, objective targets designed to improve the lives of their citizens.

    UN News/Daniel Dickinson

    The Sustainable Development Goals form the bedrock of social justice.

    Promoting decent work

    One of the primary ways the UN supports social justice is through the promotion of decent work and economic opportunities.

    The International Labour Organization (ILO), a specialized UN agency, plays a crucial role in this area. The ILO‘s Decent Work Agenda focuses on creating jobs, guaranteeing rights at work, extending social protection, and promoting social dialogue.

    By advocating for fair wages, safe working conditions, and the elimination of forced labour and child labour, the ILO helps ensure that workers worldwide are treated with dignity and respect.

    © ILO/Shaun Chitsiga

    A banana grower harvests his crop in Manicaland, Zimbabwe.

    The promotion of decent work is one of the Sustainable Development Goals of the 2030 Agenda: Goal 8 (SDG 8) calls for the promotion of inclusive and sustainable economic growth, employment and decent work for all.

    Advancing gender equality

    Gender equality is another critical aspect of social justice that the UN actively promotes. It is a fundamental human right and is critical to a healthy society.

    UN Women, the United Nations entity dedicated to gender equality and the empowerment of women, works to eliminate discrimination against women and girls, empower women, and achieve gender equality, through initiatives such as the HeForShe campaign and the Spotlight Initiative.

    © UNFPA/Mbuto Machil

    A community activist in Cabo Delgado, Mozambique provides information on preventing child marriage and gender-based violence.

    SDG 5 calls for the achievement of gender equality and the empowerment of all women and girls: UN-backed commitments have seen declines in some problem areas, such as child marriage and female genital mutilation (FGM), but many women and girls continue to face barriers to their economic and social empowerment.

    Ensuring access to education

    Despite some recent progress in the percentage of students attaining a basic education, an estimated 300 million children and young people will still lack basic numeracy and literacy skills by 2030.

    © UNICEF

    Students in Chhattisgarh, India, attend a robotics class.

    Education is a powerful tool for reducing inequalities, reaching gender equality and achieving social justice, and the UN is committed to reaching SDG 4, which focuses on ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all.

    The UN also supports educational and training programmes aim to build tolerance, understanding, and resilience among young people, helping them become advocates for social justice.

    Protecting human rights

    The protection of human rights is at the heart of the UN’s mission, and one of its greatest accomplishments is the drafting and adoption of the groundbreaking Universal Declaration of Human Rights, which paved the way for a comprehensive body of human rights law.

    The Office of the High Commissioner for Human Rights (OHCHR) works to promote and protect the human rights of all people, monitoring and reporting human rights violations, providing technical assistance to governments, and supporting the work of human rights defenders.

    The work of the OHCHR is crucial in ensuring that individuals can live free from discrimination, violence, and oppression.

    © WHO/Anna Kari

    The SDGs focus on eliminating poverty and providing people with opportunities to prosper.

    • Since 2008 World Day of Social Justice has been celebrated annually on 20 February, following a declaration by the General Assembly.
    • The Day was created as a reminder of the need to build a fairer and more equitable world, and to combat unemployment, social exclusion and poverty.
    • This year’s theme is “Strengthening a just transition for a sustainable future,” acknowledging the need to ensure that the move towards low-carbon economies benefits everyone, especially the most vulnerable.
    • The International Labour Organization (ILO) is marking the occasion with a series of events held in major cities around the world.

    MIL OSI United Nations News –

  • MIL-OSI Economics: Farewell Address to Staff – Masatsugu Asakawa

    Source: Asia Development Bank

    Speech by Masatsugu Asakawa, President, Asian Development Bank, 19 February 2025, ADB headquarters, Manila, Philippines

    My very dear colleagues, here we are, together again in this room, where I stood before you five years ago to say, “hello,” and “call me Masa.” What a journey it has been!

    I don’t think any of us could have predicted what was in store for us on that February day back in 2020. Within just a few weeks, we were in the grip of a pandemic that drove us into lockdown, causing tremendous hardship and drastically changing how we work.

    My friends, our journey as an ADB family is forever connected to the journey of this region. And I believe we have shaped that journey, for the better.

    We have done our part to help our developing member countries to get through the pandemic and on a path to recovery; to be ready to tackle emerging crises and urgent threats, including the climate crisis; and to maintain focus on long-term development.

    I was so pleased to see highlights of this good work in the video you showed and to hear perspectives from Bruce, Nelly, and Bruno. Thank you very much for your kind words.

    I am deeply humbled that you credit our achievements to my contributions as President. But even more important, these achievements tell a story about what all of us can do when a challenge comes our way, and we face it together.

    So let me take a few moments to share a few reflections on how you have shaped me during this journey.

    I. Meeting unprecedented development challenges with quick and decisive action

    First, we needed quick, decisive, and bold action, at every step: as the pandemic struck, as the climate crisis mounted, and as there were calls to evolve to deliver better and faster.

    I remember coming to my office upstairs almost every day during lockdown. I held videoconferences with ministers and heads of state to see what assistance they needed. I knew ADB needed to respond without delay. And we did, thanks to you.

    I truly believe that our assistance helped to prevent grave suffering for millions, and fiscal collapse across our region. Our response, including budget and vaccine support, were spectacular achievements.

    The same is true for our climate action. I remember the intense discussions we had before going to Glasgow in 2021 for COP26. These paved the way for our $100 billion climate finance ambition, Energy Transition Mechanism, IF-CAP, and a just transition commitment across our climate operations. This was a real turning point that positioned us as the Climate Bank for Asia and the Pacific.

    II. Reforming and innovating to adapt to changing circumstances

    And then, we forged ahead with reforms, to unlock an additional $100 billion in lending capacity through CAF; to take stock, and make key shifts, through the NOM and midterm review of Strategy 2030; and to elevate critical agendas including private sector development, domestic resource mobilization, food security, digitalization, and gender equality.

    You also made sure that the poorest and most vulnerable in our region were not left behind. The ADF replenishment, including the novel financing you prepared, is helping people in places like Afghanistan and Myanmar, and small island developing states.

    All of this was made possible by thinking outside the box. The unprecedented circumstances we faced over the past five years demanded that ADB change quickly and do things differently. You did not hesitate to meet the demands of the moment.

    The circumstances also required ADB to balance many needs. Our operations shifted appropriately during the pandemic, to support response and recovery. It took some time for our climate financing to ramp back up, but it did. I know we will also continue to expand our contributions in areas like education and RCI.

    III. The priority of wellbeing

    As you can see, my friends, there was a lot on my mind over the past five years. A lot of things kept me up at night. But if I may, I’d like to emphasize my most important concern. It was to ensure the safety and wellbeing of staff.

    I spoke to you often during the pandemic. I even sent you a musical greeting on my flute! I hope that it brought you some comfort to know that you were not alone.

    Another experience that I have not talked about as much is the evacuation of our local staff from Afghanistan when the government fell in 2021. It was such a dangerous and unpredictable situation, and we had very few options. But we had to find a way to get our staff to safety. After consulting with heads of state and coming up with a complex plan, we managed to get everyone out, just in time.

    That experience reminded me that staff wellbeing must remain ADB’s highest priority. And the reason is clear: ADB’s most valuable asset is its staff. Even more simply, we are family. And I am so touched by the way you treated me like family.

    Colleagues in our field offices, you were always so warm and welcoming when I visited the countries where you live and work. The memories of our beneficiaries, the historical sites, and the delicious local cuisine—and the selfies I took with you!—will stay with me forever.

    IV. In praise of staff

    Ever since I announced my intention to step down, I have been flooded with good wishes and praise for what ADB has done for the region during my Presidency. But I firmly believe that these successes are not coming from me. They are coming from you.

    You have been so innovative, so responsible, and so loyal to our mission. I always knew that whenever we faced a problem, I could consult staff, and you would come up with quick and relevant solutions. That is why, from Day 1, I felt nothing but optimism that we would achieve our mission. And I was never disappointed.

    Closing

    Your work over the last five years has put our region on the strongest possible foundation to build lasting prosperity, to stay resilient through crises and disasters, and to ensure that growth is inclusive and sustainable.

    Asia and the Pacific will indeed remain an engine for global growth for decades to come. And you helped make that possible. I am honored by the ways you stepped up to accomplish everything that I asked of you—and everything the region needed from us. I am in awe of what you have achieved. And my trust in you will never fade.

    I will step away now, but I know that the course we have navigated these past five years will take us to an even brighter future. I will be cheering for you every step of the way.

    And so, my dearest colleagues, my beloved friends and ADB family, thank you for a job well done. I wish you health, happiness, and good fortune on this unforgettable journey.

    Thank you.

    MIL OSI Economics –

  • MIL-OSI USA: Cortez Masto, Mullin Reintroduce Bipartisan Bill to Make it Easier for Indian Health Services to Recruit and Retain Doctors

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto

    Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Markwayne Mullin (R-Okla.) reintroduced their bipartisan legislation to make it easier for Indian Health Services (IHS) to recruit and retain medical workers. Specifically, this legislation, the IHS Workforce Parity Act, improves health care in Tribal communities by allowing providers working part-time to access IHS scholarship and loan repayment programs. Last Congress, this bill passed the Senate unanimously but did not receive a vote in the House of Representatives.

    Historically, IHS has a 25% vacancy rate for health care providers, and the IHS Workforce Parity Act would help attract new doctors and nurses to both the agency and Tribal health facilities that serve over 2.5 million American Indian and Alaskan Native Tribal members.

    “The severe shortage of IHS health care providers poses a threat to the quality of care that Nevadans in Tribal communities receive. That is unacceptable,” said Senator Cortez Masto. “It is time for Congress to come together to pass my common sense, bipartisan legislation and provide real solutions for Indian Country.”

    “I am confident our legislation will help address the current difficulty IHS is facing in recruiting and retaining health care professionals,” said Senator Mullin. “Rural health care providers like IHS have unique staffing needs, and our bill offers a flexible, cost-effective solution to ensure IHS maintains a competitive edge when considering new recruits. In strengthening the workforce, IHS can ensure a proper quality of care to their patients and improve patient outcomes.” 

    Senator Cortez Masto has long been a champion for Tribal communities. Last year, the Senate passed her legislation to strengthen Tribal public safety. She repeatedly called on the Biden administration to do more to address the epidemic of violence against Native women and girls, including securing federal funding to protect Native communities, urging the administration to draft a plan to address this issue, and requesting the Government Accountability Office (GAO) investigate the federal response to this crisis.

    MIL OSI USA News –

  • MIL-OSI: First Capital, Inc. Announces Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    CORYDON, Ind., Feb. 19, 2025 (GLOBE NEWSWIRE) — The Board of Directors of First Capital, Inc. (NASDAQ: FCAP) has declared a quarterly cash dividend of $0.29 (twenty-nine cents) per share of common stock, according to Michael C. Frederick, President and Chief Executive Officer. The dividend will be paid on March 28, 2025 to shareholders of record as of March 14, 2025.

    First Capital, Inc. is the holding company for First Harrison Bank. First Harrison currently has eighteen offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction. Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank’s website at www.firstharrison.com. For more information and financial data about First Capital, Inc., please visit Investor Relations at First Harrison Bank’s aforementioned website.

    Contact:
    Joshua P. Stevens
    Chief Financial Officer
    812-738-1570

    The MIL Network –

  • MIL-OSI: First Capital, Inc. Announces Date of Annual Meeting

    Source: GlobeNewswire (MIL-OSI)

    CORYDON, Ind., Feb. 19, 2025 (GLOBE NEWSWIRE) — First Capital, Inc. (NASDAQ:FCAP), the holding company for First Harrison Bank, today announced that its annual meeting of stockholders will be held on Wednesday, May 21, 2025.

    The Bank currently has eighteen offices in the Indiana communities of Corydon, Edwardsville, Greenville, Floyds Knobs, Palmyra, New Albany, New Salisbury, Jeffersonville, Salem, Lanesville and Charlestown and the Kentucky communities of Shepherdsville, Mt. Washington and Lebanon Junction.

    Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available through the Bank’s website at www.firstharrison.com. For more information and financial data about the Company, please visit Investor Relations at the Bank’s aforementioned website. The Bank can also be followed on Facebook.

    Contact:
    Joshua P. Stevens
    Executive Vice President
    Chief Financial Officer
    First Capital, Inc.
    200 Federal Drive, N.W.
    Corydon, Indiana 47112
    (812) 738-1570

    The MIL Network –

  • MIL-OSI: Guggenheim First Quarter 2025 High Yield and Bank Loan Outlook: Reframing Tight Spreads in Leveraged Credit

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 19, 2025 (GLOBE NEWSWIRE) — Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today released its first quarter High Yield and Bank Loan Outlook. “Reframing Tight Spreads in Leveraged Credit,” examines the outlook for high yield corporate bonds and leveraged loans in an economic environment that is supportive but marked by policy uncertainty.

    Key takeaways:

    • The leveraged credit market delivered strong returns in 2024, reflecting a solid economy and robust investor demand for fixed income.
    • High yield spreads and leveraged loan discount margins tightened by the end of the year.
    • Both fundamental and technical factors are supporting currently tight index spreads. And after adjusting for fundamental factors like leverage and interest coverage, high yield credit spreads appear cheaper compared to historical levels.
    • Moreover, the high yield bond market is comprised of higher quality issuers than a decade ago, revealing greater value and presenting carry opportunities.
    • Repricing activity should moderate leveraged loan defaults, supporting modestly tighter discount margins.
    • We anticipate modest normalization in high yield credit spreads this year, contingent on continued economic growth.
    • Solid U.S. growth and moderate inflation should support credit markets in 2025, creating a stable environment for high yield bonds and leveraged loans.
    • Historically elevated yield levels are likely to continue to attract investors, maintaining a favorable supply/demand dynamic in credit markets.

    For more information, please visit http://www.guggenheiminvestments.com.

    About Guggenheim Investments

    Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with more than $243 billion1 in total assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 220+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification opportunities and attractive long-term results.

    1. Assets under management are as of 12.31.2024 and include leverage of $14.8bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Private Investments, LLC, Guggenheim Wealth Solutions, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Japan Limited, and GS GAMMA Advisors, LLC.

    Investing involves risk, including the possible loss of principal. In general, the value of a fixed-income security falls when interest rates rise and rises when interest rates fall. Longer term bonds are more sensitive to interest rate changes and subject to greater volatility than those with shorter maturities. During periods of declining rates, the interest rates on floating rate securities generally reset downward and their value is unlikely to rise to the same extent as comparable fixed rate securities.  High yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility. Investors in asset-backed securities, including mortgage-backed securities and collateralized loan obligations (“CLOs”), generally receive payments that are part interest and part return of principal. These payments may vary based on the rate loans are repaid. Some asset-backed securities may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices volatile and they are subject to liquidity and valuation risk. CLOs bear similar risks to investing in loans directly, such as credit, interest rate, counterparty, prepayment, liquidity, and valuation risks. Loans are often below investment grade, may be unrated, and typically offer a fixed or floating interest rate.

    This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy, or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

    This material contains opinions of the author, but not necessarily those of Guggenheim Partners, LLC, or its subsidiaries. The opinions contained herein are subject to change without notice. Forward-looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC.

    Media Contact
    Gerard Carney
    Guggenheim Partners
    310.871.9208
    Gerard.Carney@guggenheimpartners.com

    The MIL Network –

  • MIL-OSI USA: Benton Exhibit Honors Minnie Negoro, Pioneering UConn Ceramics Professor

    Source: US State of Connecticut

    A new exhibition at the William Benton Museum of Art celebrates the contributions of Minnie Negoro, a former professor who laid the foundation for UConn’s ceramics program, while also highlighting her journey through one of the darkest chapters in U.S. history. 

    Curated by faculty in the College of Liberal Arts and Sciences (CLAS) with help from students, the exhibition tells the story of Negoro’s life — from her forced relocation to a Japanese American incarceration camp during World War II to her lasting influence as a beloved professor and artist.  

    Hana Maruyama, assistant professor of history and social and critical inquiry in CLAS and lead curator of the exhibition, hopes it will honor Negoro’s legacy at UConn while spotlighting the importance of public history.  

    “Her former students knew she had existed, her colleagues in the art department knew she had existed, but from the Asian American studies side, that kind of institutional memory had kind of been lost,” Maruyama says. 

    Rediscovering a Forgotten Story 

    Jason Chang—head of the Department of Social and Critical Inquiry, associate professor of history, and co-curator of the exhibition— first uncovered Negoro’s story while leading the former Asian and Asian American Studies Institute. Recognizing its significance, he partnered with Maruyama and a team of scholars and artists to examine Negoro’s impact at UConn. Their research soon uncovered an unexpected discovery—this year marks 60 years since Negoro’s arrival at the University. 

    Maruyama, who studies Japanese American incarceration and had family imprisoned at Heart Mountain, quickly realized that while Negoro had a profound impact on her students and the School of Fine Arts, little had been documented in archives or other public history sources. 

    Determined to preserve that legacy, Maruyama began seeking out information from Negoro’s former colleagues and students.  

    “One year is not a lot of time to create an exhibition,” says Maruyama, who previously worked at the Smithsonian Institution. “It’s very typical for an exhibition to take five to eight years, but I just think her story is so important and hasn’t gotten the attention that she deserved.” 

    From Internment to UConn Professor  

    Just a semester away from graduating from the University of California, Los Angeles, Negoro and her family were among the 125,000 Japanese Americans forcibly removed from the West Coast and placed in incarceration camps across the U.S. in 1942.  

    Although Negoro was an art major, she didn’t learn to use a potter’s wheel until she arrived at Heart Mountain, Wyoming. There, she was one of six people hired to work at the Heart Mountain Ceramics Plant, according to Maruyama.  

    She developed her skills through a government initiative to use imprisoned Japanese Americans to produce tableware for the U.S. Army and other incarceration camps. Despite the repressive circumstances, Negoro’s training at Heart Mountain launched her career and eventually paved the way for UConn’s ceramics program.  

    Negoro was able to leave Heart Mountain through a program that permitted Japanese American students to attend colleges outside the exclusion zone. Under the guidance of one of her mentors from Heart Mountain, she pursued an MFA at Alfred University.  

    After earning her degree, Negoro ran her own ceramics studio in New York for a decade and taught at institutions such as the Rhode Island School of Design and the Chouinard Art Institute in Los Angeles before arriving at UConn in 1965.  

    “They just kept renewing her contract and eventually she got on a tenure track and the rest is history,” Maruyama says. “She taught here for the next 20-plus years.”  

    Maruyama says now, decades later, many of Negoro’s former students are still eager to share how she impacted not only their education and careers but also their lives.  

    “They are so committed to preserving her legacy,” Maruyama says. “As an educator, it was inspiring for me to hear them talk about how much she impacted their lives.” 

    Minnie Negoro demonstrates the use of the potter’s wheel to a group of students on December 5, 1967. (Courtesy of UConn Archives and Special Collections).

    Students Help Share Negoro’s Story 

    To further honor Negoro’s legacy, Maruyama involved her own students in the process of putting together the exhibit. She revamped her spring 2024 “Topics in Public History” course to have them create an initial draft of the exhibition.  

    “The students were excited to be working on something that was going to go on display,” Maruyama says. “They put their hearts and souls into it.” 

    Everett Padro ’26 (CLAS), a history major, says he’s been interested in public history since childhood.  

    “I used to go to the Smithsonian because I have family members that work there,” he says. “I would just be blown away by not only the artifacts they had but how they organized and kept track of and cared for them.” 

    Padro, who is now considering a career in museum curation, was excited to learn Maruyama’s class would allow him to get some hands-on experience while also exploring the history of something close to home.  

    “It was a pleasant surprise getting to work so intimately with first-hand accounts and structuring this as a teamwork effort to create this exhibit,” Padro says. 

    According to Maruyama, students contributed to multiple aspects of the exhibit, including working on oral and digital histories, writing content, researching UConn’s special collections, and creating a social media campaign. 

    Padro appreciated the opportunity to work on his interests, choosing to work on digitally archiving old photos.  

    “I was interested to see how we can preserve and tell this story to future generations–not only who she was but how she’s relevant to the University,” Padro says. 

    A Lasting Legacy 

    The exhibit features images, artifacts, and writing that explain Negoro’s life and impact as a teacher, as well as examples of her work. It also showcases the work of alumni, many of whom credit her guidance for their success.  

    “What I find kind of incredible about her is that she also had a reputation for being a tough teacher,” Maruyama says. “She was making those undergrads do ceramics math, and ceramics chemistry. This was not just an art class. She really got into the science of ceramics and that’s not something that a lot of undergraduate ceramics programs do.” 

    The exhibit will remain on display until July 27, 2025. Maruyama hopes it will cement Negoro’s legacy at UConn while also bringing attention to the broader history of Japanese American incarceration.  

    “This history is still so personal for many of us,” she says. “Minnie Negoro’s story is about resilience, creativity, and the power of education. It’s about making sure we don’t forget.” 

    — 

    Minnie Negoro: From Heart Mountain to UConn, will be on display in the Benton Museum through July 2025. Hana Maruyama, Assistant Professor of History and Social and Critical Inquiry at UConn, will lead a guided tour of the exhibit on Friday, Feb. 21, 2025. 

    MIL OSI USA News –

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

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the fourth quarter and full year 2024, which included the summary below from its President and CEO, Dr. Raj Talluri.

    Fellow Shareholders,

    In the fourth quarter of 2024, we achieved key milestones in manufacturing, technology, and sales, setting the stage for a breakout year in 2025. We are focused on launching our first smartphone battery and converting our IoT pipeline into contracted backlog. Customers across multiple industries are acknowledging the readiness of our manufacturing capabilities, which are coming online at the perfect time to meet strong demand for our high energy-density solutions and diversified supply chain.

    Other recent highlights include:

    • Record Revenue: Fourth quarter revenues were a record $9.7 million, near the high end of our guidance. Full year 2024 revenues were also a record of $23.1 million, up 202%, from $7.6 million in 2023.
    • Smartphone Batteries: We shipped early engineering samples to our lead smartphone OEM, with results confirming that critical safety tests are passing. Additionally, cell dimensions were received in continuation of our agreement. We remain on track for commercial smartphone battery launches in 2025, pending successful completion of customer qualification. Furthermore, a new OEM customer submitted first samples purchase order, expanding our active engagements to 7 of the top 8 smartphone OEMs.
    • XR Batteries: Secured a landmark prepaid purchase order from a global technology leader in Artificial Intelligence (AI) and immersive technologies, reserving dedicated production capacity for next-generation smart eyewear. First samples, featuring our custom cells from Fab2 integrated into packs in our Korea facility, were delivered to the customer earlier this month.
    • Manufacturing Readiness: Fab2 in Malaysia completed Site Acceptance Testing (SAT) for the High-Volume Manufacturing (HVM) line, a key milestone in our journey to scale production. Additionally, we were honored to host several customers at our factory in Malaysia, conducting detailed line tours. And multiple OEMs initiated formal factory audits to support their qualification processes.
    • Products: We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. And the first EX-2M samples from Fab2 were shipped to customers on schedule.
    • Capitalization: 2024 year-end cash and cash equivalents of $272.9 million and continued operating expense discipline provides optionality for funding additional HVM lines.

    2025 is off to a fast start, fueled by accelerating AI innovation and a shifting landscape that is driving OEMs to diversify their supply chains. As a leader in high-energy-density battery technology with manufacturing facilities in Korea and Malaysia, Enovix is well positioned to capitalize on these industry trends.

    A key strategic decision in 2024 was to invest in the emerging AI-enabled smart eyewear market by developing a battery cell tailored for this market. We believe this investment is now paying off, as our product is expected to launch as this market is gaining momentum. New estimates from IDC project the smart eyewear market will reach multiple tens of millions of units by 2028, driven by recent hardware and software ecosystem advancements, the growing adoption of AI applications, and the expanding use cases across consumer, enterprise and defense markets. A majority of America’s largest tech companies, along with several top-tier Asia-based OEMs, have announced smart eyewear products. However, one major bottleneck remains – no product today delivers resiliency to all-day usage with ever-increasing sensor, communications (WiFi, Bluetooth, cellular, and satellite), and computing demands. This presents a prime opportunity for Enovix. With our high-energy-density battery already developed, HVM ramping up, and many of the market’s key players based in our backyard of Silicon Valley, we believe we are well-positioned to lead in this space.

    In smartphones, the strong tailwinds we identified last quarter continue in 2025. OEMs are increasingly requesting batteries with capacities near 7,000 milliamp-hours to support the growing power demands of next-generation AI applications. Additionally, with smartphone penetration already at saturation levels, market leaders are intensifying their focus on product differentiation – particularly in regions outside the US, where competition is fierce. We believe that our EX-2M and upcoming EX-3M battery solutions align with evolving demands, reinforcing our role as a strategic partner to leading OEMs.

    A new industry trend that has emerged subsequent to our last shareholder letter is supply chain-driven demand, particularly in the defense sector. Soon after the US elections in November, we observed an increase in inbound interest from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements. As a reminder, a significant portion of our 2024 revenue came from sales of conventional graphite battery products to defense customers. Earlier this month, we secured a purchase order for samples from a new defense customer with over $1 billion in annual sales to the US military, focused on autonomous AI systems. While these developments are still evolving, we are optimistic about the potential upside.

    Business Update

    Manufacturing. We successfully completed our key fourth-quarter objectives on schedule, including SAT for the HVM line and shipping the first EX-2M samples. We also further improved yields across both the Agility and HVM lines, with incremental targets in place throughout the year that we believe will ensure readiness for smartphone mass production in the fourth quarter of 2025. Customer audits are now underway at our Malaysia facility. While preparing Fab2 for mass production remains our primary manufacturing focus in 2025, we are also prioritizing efforts to accelerate custom cell development timelines. Our initial success in the emerging smart eyewear market was made possible because we dedicated resources to making a new variant of EX-1M designed to fit within the confines of the glasses frames. As we scale, our ability to swiftly develop tailored solutions with precision manufacturing and latest chemistries will play a critical role in our success. Additionally, we continue to act in a disciplined manner to select the right customer opportunities to pursue for long-term growth.

    Commercialization. Our business team remains focused on smartphone mass production as the primary commercialization goal for 2025. In October of 2024, we took a major step toward this objective by executing a strategic partnership that outlined key milestones leading up to our entry into the smartphone market by late 2025. This agreement was followed by a purchase order in the fourth quarter of 2024 tied to one of those milestones, and in the first quarter of 2025 we received battery dimensions for a planned 2025 smartphone launch. Additionally, we secured a first purchase order for samples from a new global smartphone manufacturer, expanding our customer engagements to 7 of the top 8 smartphone OEMs.

    In addition to being focused on smartphone business, we are also being highly selective with IoT opportunities, prioritizing segments where our technology and global supply chain have a strong competitive advantage. Among these, smart eyewear emerged as a natural fit, and we are now in the process of developing custom cells for marquee customers. This quarter, we shipped our first samples to customers using our Korea-based packing capability that is now fully integrated with our silicon cell production out of Malaysia. Our first commercial shipments are scheduled to commence mid-year, and we are actively securing additional IoT purchase orders.

    In the EV space, we continue advancing development agreements with two of the world’s largest automotive OEMs. Consistent with our capital-efficient strategy, we remain focused on targeted collaborations that allow us to scale in this vertical while optimizing investment.

    Across these markets, our disciplined approach to commercialization ensures that we are not only securing near-term revenue opportunities but also building a foundation for long-term leadership in high-energy-density battery solutions.

    Products:

    Our battery technology continues to advance across multiple generations, with significant progress in safety and performance validation, customer sampling, and next-generation design. We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. For EX-2M, we delivered early engineering samples to OEMs across both smartphone and IoT markets and received positive feedback. Additionally, EX-2M has outperformed traditional graphite-based cells in select safety tests such as crush and impact tests. We are now refining our electrochemistry to further enhance performance metrics. Looking ahead, we have officially kicked off the design phase for EX-3M. As we continue refining key performance specifications, we are incorporating feedback from lead OEMs to ensure alignment with their evolving requirements. Our goal is to finalize the EX-3M design in early 2025, paving the way for our next-generation battery technology.

    These advancements reflect our commitment to delivering high-performance, high-energy-density battery solutions across multiple product categories, reinforcing our position as a leader in battery innovation.

    Financials: Revenue was $9.7 million in the fourth quarter of 2024, near the high end of our guidance range and up more than 30 percent year over year. A majority of revenues were from our conventional battery capacity in South Korea which is seeing a positive demand environment from defense customers and benefiting from increased collaboration with our US engineers. Our GAAP cost of revenue was $8.7 million in the fourth quarter of 2024 leading to the Company’s first ever positive gross margin which totaled $1.1 million or 11% of sales.

    Our GAAP operating expenses were $35.6 million in the fourth quarter of 2024 compared to $48.6 million in the third quarter, which reflects some of the expense reductions related to our shift of various functions to lower cost regions such as Malaysia and India. Our non-GAAP operating expenses were $24.3 million in the fourth quarter of 2024, down from $27.2 million in the previous quarter.

    Our GAAP net loss attributable to Enovix was $37.5 million in the fourth quarter of 2024, compared to $22.5 million in the previous quarter. As a reminder our GAAP net loss is impacted quarterly by changes in fair value of common stock warrants, which resulted in a $5.1 million expense in the fourth quarter compared to a $29.9 million benefit in the third quarter of 2024.  

    Adjusted EBITDA in the fourth quarter of 2024 was a loss of $11.7 million compared to an adjusted EBITDA loss of $21.6 million in the previous quarter. The sequential improvement was driven by positive gross margin, lower operating expenses and a $1.0 million increase in depreciation and amortization.

    Earnings per share loss in the fourth quarter of 2024 was $0.20 on a GAAP basis and $0.11 on a non-GAAP basis compared to third quarter earnings per share loss of $0.30 on a GAAP basis and $0.17 on a non-GAAP basis.

    We exited 2024 with $272.9 million of cash and cash equivalents following the receipts of approximately $107 million of net proceeds from an equity offering in the fourth quarter which was partially offset by $16.0 million used in operating activities and capital expenditures of $16.4 million during the quarter.

    A full reconciliation of our GAAP to non-GAAP results is available later in this report.

    Outlook

    For the first quarter of 2025, we expect revenue between $3.5 million and $5.5 million, a GAAP EPS loss of $0.23 to $0.29, an adjusted EBITDA loss of $21.0 million to $27.0 million, and a non-GAAP EPS loss of $0.15 to $0.21.

    Summary

    The top milestones we identified at the beginning of 2024 were achieving SAT for agility and our high-volume manufacturing lines in Malaysia and delivering samples of our leading smartphone batteries, EX-1M and EX-2M, to customers. Not only did we hit these top milestones, we also advanced relationships with market leaders in smartphones, AR/VR, and automotive industries. We believe that these relationships, supported by purchase orders and commercial launch schedules, provide a clear path for us to commence mass production in 2025.

    Conference Call Information

    Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, February 19, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q4-2024.open-exchange.net/registration. This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

    About Enovix

    Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to the vehicle you drive, needs a better battery. Enovix partners with OEMs worldwide to usher in a new era of user experiences. Our innovative, materials-agnostic approach to building a higher performing battery without compromising safety keeps us flexible and on the cutting-edge of battery technology innovation.

    Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit https://enovix.com and follow us on LinkedIn.

    Non-GAAP Financial Measures

    Non-GAAP operating expenses, EBITDA, Adjusted EBITDA, non-GAAP net loss per share, and other non-GAAP measures are intended as supplemental financial measures of our performance that provide an additional tool for investors to use in evaluating ongoing operating results, trends, and in comparing our financial measures with those of comparable companies.

    However, you should be aware that other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

    While Enovix provides first quarter 2025 guidance for adjusted EBITDA loss and non-GAAP EPS loss, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures. Such qualitative reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock-based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

    Forward-Looking Statements

    This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, setting the stage, should, would and similar expressions that convey uncertainty about future events or outcomes. Forward-looking statements in this letter to shareholders include, without limitation, out expected performance and results for the first quarter of 2025; that 2025 will be a breakout year; the timing for completion of customer qualification for and the launch of our first smartphone battery in 2025; our expectations regarding our ability to commence mass production in 2025 and full utilization of the first HVM line in 2026; our expectations regarding, and our ability to respond to, market and customer demand; our expectations regarding the level of customers’ interest in our high energy-density solutions and diversified supply chain, the demand for more energy dense batteries and the suitability of our products to address this demand, and the impact of artificial intelligence (“AI”) features on the foregoing; our ability to develop and deliver a battery cell tailored to the smart eyewear market, including our ability to deliver a battery that delivers a full day of usage on a single charge, and the anticipated benefits of our investments in these products and market; our anticipated commercial shipments of batteries for smart eyewear and other IoT products by mid-year 2025; our ability to convert our IoT pipeline into contracted backlog; projected improvements in our manufacturing and commercialization and R&D activities at Fab2, including the ability of the sales team to support the path to profitability by attracting demand across high-growth markets; our achievement of the milestones under our strategic partnership with a leading smartphone OEM; expectations relating to broader agreements with automative OEMs; our ability to successfully complete safety testing and customer qualification and our ability to and the timing of our entry into the smartphone market in 2025 with high-volume production from our Fab2 facility; our ability to meet our spec targets for energy density, cycle life and fast charging for our EX-1M cells; our ability to develop and commercialize customer and product-specific variants of our products and other tailored solutions for our customers; our expectations regarding EX-1M and EX-2M readiness and production, and predicted EX-3M battery solution production; our ability to meet goals for yield, throughput, energy density, cycle life and fast charging; the readiness of our production and manufacturing capabilities; our expectations with respect to the development and innovation of EX-2M and EX-3M, including our ability to finalize the EX-3M design in Q1 2025; our expectations regarding Fab2 in and its capacity to support multiple customer qualifications; our observations and expectations around supply chain-driven demand including in the defense sector, and interest from specific customer segments including drone manufacturers and military suppliers; the anticipated contributions of our R&D teams to support product innovation; our revenue funnel; our efforts in the portable electronics and EV markets, including the IoT, smartphone, smart eyewear and virtual reality categories; expectations regarding the reservation and use of production capacity and our ability to satisfy production expectations relating to next-generation smart eyewear; our ability to meet milestones and deliver on our objectives and expectations; our ability to fund additional HVM lines; anticipated increases in demand and interest in our products from manufacturers and suppliers seeking battery solutions that comply with allied country supply chain requirements; the implementation and expected success of our business model and growth strategy, including our focus on the addressable market categories in which we believe an improved battery drives a high value to the product and premium pricing for our solutions; our ability to manage our expenses and realize our annual cost savings goals; our ability to capitalize on industry trends, including trends relating to accelerating AI innovation; our ability to manage and achieve the benefits of our restructuring efforts, including continued operating expense discipline to facilitate funding for additional HVM lines at Fab2; and forecasts of our financial and performance metrics.

    Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to improve energy density, cycle life, fast charging, capacity roll off and gassing metrics among our products; our reliance on new and complex manufacturing processes for our operations; our ability to establish sufficient manufacturing operations and improve and optimize manufacturing processes to meet demand, source materials and establish supply relationships, and secure adequate funds to execute on our operational and strategic goals; our reliance on a manufacturing agreement with a Malaysia-based company for many of the facilities, procurement, personnel and financing needs of our operations; our operation in international markets, including our exposure to operational, financial and regulatory risks, as well as risks relating to geopolitical tensions and conflicts, including changes in trade policies and regulations; that we may be required to pay costs for components and raw materials that are more expensive than anticipated, including as a result of trade barriers, trade sanctions, export restrictions, tariffs, embargoes or shortages and other general economic and political conditions, which could delay the introduction of our products and negatively impact our business; our ability to adequately control the costs associated with our operations and the components necessary to build our lithium-ion battery cells; our lengthy sales cycles; the safety hazards associated with our batteries and the manufacturing process; a concentration of customers in the military market and our dependence on these customer accounts; certain unfavorable terms in our commercial agreements that may limit our ability to market our products; our ability to develop, market and sell our batteries, expectations relating to the performance of our batteries, and market acceptance of our products; our ability to accurately estimate the future supply and demand of our batteries, which could result in a variety of inefficiencies in our business; changes in consumer preferences or demands; changes in industry standards; the impact of technological development and competition; and global economic conditions, including tariffs, inflationary and supply chain pressures, and political, social, and economic instability, including as a result of armed conflict, war or threat of war, or trade and other international disputes that could disrupt supply or delivery of, or demand for, our products.

    For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For media and investor inquiries, please contact:

    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

     
    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
     
      December 29, 2024   December 31, 2023
    Assets      
    Current assets:      
    Cash and cash equivalents $ 272,869     $ 233,121  
    Short-term investments   —       73,694  
    Accounts receivable, net   4,566       909  
    Notes receivable, net   4       1,514  
    Inventory   7,664       8,737  
    Prepaid expenses and other current assets   9,903       5,202  
    Total current assets   295,006       323,177  
    Property and equipment, net   167,947       166,471  
    Customer relationship intangibles and other intangibles, net   36,394       42,168  
    Operating lease, right-of-use assets   13,479       15,290  
    Goodwill   12,217       12,098  
    Other assets, non-current   2,126       5,100  
    Total assets $ 527,169     $ 564,304  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 9,492     $ 21,251  
    Accrued expenses   19,843       13,976  
    Accrued compensation   8,228       10,731  
    Short-term debt   9,452       5,917  
    Deferred revenue   3,650       6,708  
    Other liabilities   3,036       2,435  
    Total current liabilities   53,701       61,018  
    Long-term debt, net   169,820       169,099  
    Warrant liability   28,380       42,900  
    Operating lease liabilities, non-current   13,293       15,594  
    Deferred revenue, non-current   3,774       3,774  
    Deferred tax liability   8,784       10,803  
    Other liabilities, non-current   14       13  
    Total liabilities   277,766       303,201  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 190,559,335 and 167,392,315 as of December 29, 2024 and December 31, 2023, respectively   19       17  
    Preferred stock, $0.0001 par value; authorized shares of 10,000,000; no shares issued or outstanding as of December 29, 2024 and December 31, 2023, respectively   —       —  
    Additional paid-in-capital   1,067,951       857,037  
    Accumulated other comprehensive loss   (143 )     (62 )
    Accumulated deficit   (821,086 )     (598,845 )
    Total Enovix’s stockholders’ equity   246,741       258,147  
    Non-controlling interest   2,662       2,956  
    Total equity   249,403       261,103  
    Total liabilities and equity $ 527,169     $ 564,304  
     
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In Thousands, Except Share and per Share Amounts)
     
      Quarters Ended   Fiscal Years Ended
      December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Revenue $ 9,717     $ 7,381     $ 23,074     $ 7,644  
    Cost of revenue   8,665       19,769       25,119       63,061  
    Gross margin   1,052       (12,388 )     (2,045 )     (55,417 )
    Operating expenses:              
    Research and development   22,433       34,582       124,506       88,392  
    Selling, general and administrative   13,135       17,807       74,311       79,014  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost   —       —       41,807       3,021  
    Total operating expenses   35,568       52,389       240,624       174,838  
    Loss from operations   (34,516 )     (64,777 )     (242,669 )     (230,255 )
    Other income (expense):              
    Change in fair value of common stock warrants   (5,115 )     2,040       12,244       6,180  
    Interest income   2,587       4,128       12,332       14,070  
    Interest expense   (1,719 )     (1,629 )     (6,787 )     (4,456 )
    Other income (loss), net   2,463       (433 )     954       (304 )
    Total other income (loss), net   (1,784 )     4,106       18,743       15,490  
    Loss before income tax expense (benefit)   (36,300 )     (60,671 )     (223,926 )     (214,765 )
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Net loss   (37,452 )     (60,038 )     (222,534 )     (214,132 )
    Net gain (loss) attributable to non-controlling interests   13       (61 )     (293 )     (61 )
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
                   
    Net loss per share attributable to Enovix shareholders, basic $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    Weighted average number of common shares outstanding, basic   184,971,942       165,708,522       175,038,107       159,065,697  
    Net loss per share attributable to Enovix shareholders, diluted $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    Weighted average number of common shares outstanding, diluted   184,971,942       165,708,522       175,038,107       159,575,555  
     
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
    (In Thousands) Fiscal Years
        2024       2023  
    Cash flows used in operating activities:      
    Net loss $ (222,534 )   $ (214,132 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   44,961       34,009  
    Stock-based compensation   58,837       69,452  
    Changes in fair value of common stock warrants   (12,244 )     (6,180 )
    Impairment and loss on disposals of long-lived assets   38,258       4,411  
    Others   448       703  
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   (2,465 )     (370 )
    Inventory   1,073       4,509  
    Prepaid expenses and other assets   (2,211 )     (626 )
    Accounts payable   (7,970 )     6,096  
    Accrued expenses and compensation   3,016       1,977  
    Deferred revenue   (3,058 )     (3,860 )
    Deferred tax liability   (2,697 )     (813 )
    Other liabilities   (2,047 )     188  
    Net cash used in operating activities   (108,633 )     (104,636 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (76,188 )     (61,795 )
    Routejade acquisition, net of cash and restricted cash acquired   —       (9,968 )
    Purchases of investments   (31,812 )     (138,343 )
    Maturities of investments   106,621       67,150  
    Net cash used in investing activities   (1,379 )     (142,956 )
    Cash flows from financing activities:      
    Proceeds from issuance of common stocks, net of issuance costs   107,192       —  
    Proceeds from issuance of Convertible Senior Notes and loans   4,572       172,500  
    Repayment of debt   (209 )     (69 )
    Payments of debt issuance costs   —       (5,917 )
    Purchase of Capped Calls   —       (17,250 )
    Payroll tax payments for shares withheld upon vesting of RSUs   (7,079 )     (3,931 )
    Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs   44,771       11,928  
    Proceeds from issuance of common stock under employee stock purchase plan   1,506       2,350  
    Repurchase of unvested restricted common stock   (4 )     (26 )
    Net cash provided by financing activities   150,749       159,585  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (1,169 )     154  
    Change in cash, cash equivalents, and restricted cash   39,568       (87,853 )
    Cash and cash equivalents and restricted cash, beginning of period   235,123       322,976  
    Cash and cash equivalents, and restricted cash, end of period $ 274,691     $ 235,123  
           

    Net Loss Attributable to Enovix to Adjusted EBITDA Reconciliation

    While we prepare our consolidated financial statements in accordance with GAAP, we also utilize and present certain financial measures that are not based on GAAP. We refer to these financial measures as “non-GAAP” financial measures. In addition to our financial results determined in accordance with GAAP, we believe that EBITDA and Adjusted EBITDA are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses.

    These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures.

    We use non-GAAP financial information to evaluate our ongoing operations and for internal planning, budgeting and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing its operating performance and comparing its performance with competitors and other comparable companies. You should review the reconciliations below but not rely on any single financial measure to evaluate our business.

    “EBITDA” is defined as earnings (net loss) attributable to Enovix adjusted for interest expense, income tax benefit, depreciation and amortization expense. “Adjusted EBITDA” includes additional adjustments to EBITDA such as stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, impairment of equipment and other special items as determined by management which it does not believe to be indicative of its underlying business trends.

    Below is a reconciliation of net loss attributable to Enovix on a GAAP basis to the non-GAAP EBITDA and Adjusted EBITDA financial measures for the periods presented below (in thousands):

      Quarters Ended   Fiscal Years Ended
      December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Interest expense   1,719       1,629       6,787       4,456  
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Depreciation and amortization   7,544       24,009       44,961       34,009  
    EBITDA   (27,050 )     (34,972 )     (171,885 )     (176,239 )
    Stock-based compensation expense (1)   10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants   5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up   —       2,206       1,907       2,206  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost (1)   —       —       41,807       3,021  
    Acquisition cost   —       158       —       1,273  
    Adjusted EBITDA $ (11,728 )   $ (23,028 )   $ (82,794 )   $ (102,415 )

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.


    Free Cash Flow Reconciliation

    We define “Free Cash Flow” as (i) net cash from operating activities less (ii) capital expenditures, net of proceeds from disposals of property and equipment, all of which are derived from our Consolidated Statements of Cash Flow. The presentation of non-GAAP Free Cash Flow is not intended as an alternative measure of cash flows from operations, as determined in accordance with GAAP. We believe that this financial measure is useful to investors because it provides investors to view our performance using the same tool that we use to gauge our progress in achieving our goals and it is an indication of cash flow that may be available to fund investments in future growth initiatives. Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measures for the periods presented below (in thousands):

      Fiscal Years
        2024       2023  
    Net cash used in operating activities $ (108,633 )   $ (104,636 )
    Capital expenditures   (76,188 )     (61,795 )
    Free Cash Flow $ (184,821 )   $ (166,431 )

    Other Non-GAAP Financial Measures Reconciliation
    (In Thousands, Except Share and per Share Amounts)

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Revenue   $ 9,717     $ 7,381     $ 23,074     $ 7,644  
                     
    GAAP cost of revenue   $ 8,665     $ 19,769     $ 25,119     $ 63,061  
    Stock-based compensation expense     (124 )     (459 )     (320 )     (5,460 )
    Inventory step-up     —       (2,206 )     (1,907 )     (2,206 )
    Non-GAAP cost of revenue   $ 8,541     $ 17,104     $ 22,892     $ 55,395  
                     
    GAAP gross margin   $ 1,052     $ (12,388 )   $ (2,045 )   $ (55,417 )
    Stock-based compensation expense     124       459       320       5,460  
    Inventory step-up     —       2,206       1,907       2,206  
    Non-GAAP gross margin   $ 1,176     $ (9,723 )   $ 182     $ (47,751 )
                     
    GAAP research and development (R&D) expense   $ 22,433     $ 34,582     $ 124,506     $ 88,392  
    Stock-based compensation expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Amortization of intangible assets     (416 )     (277 )     (1,664 )     (277 )
    Non-GAAP R&D expense   $ 16,935     $ 28,968     $ 97,989     $ 60,706  
                     
    GAAP selling, general and administrative (SG&A) expense   $ 13,135     $ 17,807     $ 74,311     $ 79,014  
    Stock-based compensation expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (773 )     (536 )     (3,077 )     (536 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP SG&A expense   $ 7,361     $ 11,289     $ 38,786     $ 40,981  
                     
    GAAP operating expenses   $ 35,568     $ 52,389     $ 240,624     $ 174,838  
    Stock-based compensation expense included in R&D expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Stock-based compensation expense included in SG&A expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (1,189 )     (813 )     (4,741 )     (813 )
    Impairment of equipment     —       —       —       (4,411 )
    Restructuring cost (1)     —       —       (41,807 )     (3,021 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP operating expenses   $ 24,296     $ 40,257     $ 136,775     $ 101,687  

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    GAAP loss from operations   $ (34,516 )   $ (64,777 )   $ (242,669 )   $ (230,255 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Amortization of intangible assets     1,189       813       4,741       813  
    Inventory step-up     —       2,206       1,907       2,206  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP loss from operations   $ (23,120 )   $ (49,980 )   $ (136,593 )   $ (149,438 )
                     
    GAAP net loss attributable to Enovix   $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants     5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up     —       2,206       1,907       2,206  
    Amortization of intangible assets     1,189       813       4,741       813  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP net loss attributable to Enovix shareholders   $ (20,954 )   $ (47,220 )   $ (128,409 )   $ (139,434 )
                     
    GAAP net loss per share attributable to Enovix, basic   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    GAAP net loss per share attributable to Enovix, diluted   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  
                     
    Non-GAAP net loss per share attributable to Enovix, basic   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.88 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    Non-GAAP net loss per share attributable to Enovix, diluted   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.87 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

    The MIL Network –

  • MIL-OSI: PDF Solutions to Acquire secureWISE to Expand the Reach of its Semiconductor Manufacturing Data Platform

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — PDF Solutions, Inc. (Nasdaq: PDFS) today announced it has entered into a definitive agreement to acquire secureWISE, LLC, the most widely used secure, remote connectivity solution in the semiconductor manufacturing equipment industry, from Telit IOT Solutions Inc.

    The secureWISE global network enables equipment manufacturers to bring up new equipment faster, provide operational support, and maximize the value derived from the equipment customers’ investments. It is currently used by over 100 equipment vendors to connect and control their tools located in over 190 semiconductor fabs and to manage the exchange of multiple petabytes of data annually.

    PDF Solutions empowers semiconductor companies to maximize their manufacturing effectiveness. The PDF Solutions platform breaks down data silos to enable engineers to uncover critical relationships across manufacturing and design, resulting in better process control, product screening, and equipment operations.

    As the semiconductor industry becomes more globally distributed, and as advanced devices rely on the integration of multiple chiplets into a single package, more collaboration and integration are required across the semiconductor industry. This collaboration needs to be executed securely with each participant controlling access to its intellectual property.

    Today, secureWISE customers have built applications on top of the secureWISE network to deliver equipment analytics. PDF Solutions expects the acquisition to accelerate equipment makers’ ability to derive value from equipment data by enabling them to leverage PDF Solutions’ Exensio analytics software.

    Beyond enabling equipment vendors to build equipment analytics at foundries, the acquisition of secureWISE is expected to dramatically expand the capability of PDF Solutions’ secure DEX OSAT network by allowing equipment makers, fab operators, and fabless companies to collaborate to optimize chip manufacturing and test.   

    “This acquisition extends PDF Solutions analytics for equipment makers and fabless to the factory manufacturing level, which allows them to generate value from AI,” said Dr. John Kibarian, President, CEO and co-founder of PDF Solutions. He continued, “We provide the leading analytics platform for semiconductor manufacturing, and with secureWISE, the PDF Solutions platform will also be able to help members of the semiconductor ecosystem collaborate through a secure, direct connection and control the manufacturing process down to the production equipment.”

    Mike Dempsey, Vice President of secureWISE LLC, said, “We believe PDF Solutions is the ideal partner to accelerate secureWISE’s evolution, ensuring we remain at the forefront of industry trends and ahead of our customers’ needs. This acquisition will strengthen our ability to anticipate, pioneer, and integrate a far richer suite of security, collaboration, and analytics capabilities into our platform. As data exchange and collaboration become increasingly relevant to the semiconductor industry, this acquisition will better position secureWISE to deliver maximum long-term benefit to its customers who have invested in our platform.”

    Under the terms of the definitive agreement, PDF Solutions will pay a cash amount of $130.0 million, subject to customary purchase price adjustments. The purchase price will be funded by a combination of cash on hand and $70M of new bank debt. The acquisition is subject to certain closing conditions and is expected to close in the first calendar quarter of 2025.

    TD Securities (USA) LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to PDF Solutions.

    Updated Financial Outlook

    John Kibarian, CEO and President of PDF Solutions, said, “Assuming the transaction closes in the first quarter of 2025, and with purchase accounting adjustments, we would expect to achieve a full year 2025 revenue growth rate between 21% to 23% on year-over-year basis. Given that, we also expect to achieve 2025 gross margin in line with our corporate gross margin, our target model 20% operating margin, and for EPS to be slightly accretive.”

    Conference Call

    PDF Solutions will discuss this announcement on a live conference call beginning at 3:00 p.m. Pacific Time / 6:00 p.m. Eastern Time today. To participate in the live call, analysts and investors should pre-register at: https://register.vevent.com/register/BI9abfc7eadb2245c5ba00c59922fe6c87.

    Registrants will receive dial-in information and a unique passcode to access the call. We encourage participants to dial into the call ten minutes ahead of the scheduled time. The teleconference will also be webcast simultaneously on the Company’s website at https://ir.pdf.com/webcasts. A replay of the conference call webcast will be available after the call on the Company’s investor relations website. A copy of this press release will also be available on PDF Solutions’ website at News & PR Archives – PDF Solutions following the date of this release.

    Forward-Looking Statements

    The statements in this press release regarding the expected future financial results, benefits and synergies of the secureWISE acquisition on PDF Solution’s product offerings, and the expected closing of the secureWISE acquisition are forward looking and are subject to future events and circumstances. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: uncertainties with respect to the timing of the closing of the proposed transaction, including when and whether all conditions to closing will be satisfied; the failure of expected benefits from the proposed transaction to be realized or to be realized within the expected time period; uncertainties with respect to the future performance of secureWISE following an acquisition by PDF Solutions; PDF Solution’s ability to integrate secureWISE and its product and service offerings, the cost and schedule of new product development; continued adoption of the PDF Solution’s and secureWISE’s solutions by new and existing customers; the fact that operating costs and business disruption may be greater than expected following the public announcement or consummation of the proposed transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the public announcement or consummation of the proposed transaction; the incurrence of significant transaction costs related to the proposed transaction; unknown or understated liabilities of secureWISE; and other risks set forth in PDF Solutions’ periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Reports on Form 10-K, most recently filed for the year ended December 31, 2023, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and amendments to such reports. The forward-looking statements made herein are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

    About PDF Solutions 

    PDF Solutions (Nasdaq: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics industry ecosystem to improve the yield and quality of their products and operational efficiency for increased profitability. The Company’s products and services are used by Fortune 500 companies across the semiconductor and electronics ecosystem to achieve smart manufacturing goals by connecting and controlling equipment, collecting data generated during manufacturing and test operations, and performing advanced analytics and machine learning to enable profitable, high-volume manufacturing. 

    Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations across North America, Europe, and Asia. The Company (directly or through one or more subsidiaries) is an active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and DMDII. For the latest news and information about PDF Solutions or to find office locations, visit https://www.pdf.com. 

    Headquartered in Santa Clara, California, PDF Solutions also operates worldwide in Canada, China, France, Germany, Italy, Japan, Korea, Sweden, and Taiwan. For the Company’s latest news and information, visit https://www.pdf.com. 

    About secureWISE 

    The secureWISE platform enables secure and controlled remote connectivity, collaboration and service enablement in the semiconductor industry. The secureWISE suite of products and services is designed to give OEM suppliers role-based, real-time and on-demand access to their equipment that is installed at the production facilities of their customers, to deliver valuable operational insights, mission-critical performance, substantial time and cost savings, and new service revenue opportunities. As the only remote access tool built around the ISMI guidelines, secureWISE is installed in over 90% of the world’s 300mm semiconductor fabs and also numerous solar and chemical plants across the globe. https://www.telit.com/iot-platforms-overview/telit-securewise/ 

    PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. and/or its subsidiaries in the United States and other countries. Other trademarks used herein are the property of their owners. 

    Company Contacts:      
    Adnan Raza    Sonia Segovia 
    Chief Financial Officer    Investor Relations 
    Tel: (408) 516-0237    Tel: (408) 938-6491 
    Email: adnan.raza@pdf.com   Email: sonia.segovia@pdf.com 

    The MIL Network –

  • MIL-OSI: Tenaris Announces 2024 Fourth Quarter and Annual Results

    Source: GlobeNewswire (MIL-OSI)

    The financial and operational information contained in this press release is based on audited consolidated financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.

    LUXEMBOURG, Feb. 19, 2025 (GLOBE NEWSWIRE) — Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the fourth quarter and year ended December 31, 2024 in comparison with its results for the fourth quarter and year ended December 31, 2023.

    Summary of 2024 Fourth Quarter Results

    (Comparison with third quarter of 2024 and fourth quarter of 2023)

      4Q 2024 3Q 2024 4Q 2023
    Net sales ($ million) 2,845 2,915 (2%) 3,415 (17%)
    Operating income ($ million) 558 537 4% 819 (32%)
    Net income ($ million) 519 459 13% 1,146 (55%)
    Shareholders’ net income ($ million) 516 448 15% 1,129 (54%)
    Earnings per ADS ($) 0.94 0.81 16% 1.92 (51%)
    Earnings per share ($) 0.47 0.40 16% 0.96 (51%)
    EBITDA* ($ million) 726 688 6% 975 (26%)
    EBITDA margin (% of net sales) 25.5% 23.6%   28.6%  
               

    *EBITDA in fourth quarter of 2024 includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $659 million, or 23.2% of sales

    Net sales in the fourth quarter were more resilient than expected as we were able to reduce inventories and advance some shipments in the Middle East and Turkey, despite lower demand in Mexico, Argentina and Saudi Arabia. Our EBITDA declined 4% on a comparable basis with the margin supported by a favorable product mix which offset the effect of residual price declines in North America. Net income increased due to the partial reversal of the provision made in the second quarter for the ongoing litigation related to the acquisition of a participation in Usiminas jointly with our associate company, Ternium.

    During the quarter, our free cash flow amounted to $310 million and, after spending $299 million on dividends and $454 million on share buybacks, our net cash position declined to $3.6 billion at December 31, 2024.

    Summary of 2024 Annual Results

      12M 2024 12M 2023 Increase/(Decrease)
    Net sales ($ million) 12,524 14,869 (16%)
    Operating income ($ million) 2,419 4,316 (44%)
    Net income ($ million) 2,077 3,958 (48%)
    Shareholders’ net income ($ million) 2,036 3,918 (48%)
    Earnings per ADS ($) 3.61 6.65 (46%)
    Earnings per share ($) 1.81 3.32 (45%)
    EBITDA* ($ million) 3,052 4,865 (37%)
    EBITDA margin (% of net sales) 24.4% 32.7%  
           

    *EBITDA in 12M 2024 includes a $107 million loss from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $3,159 million, or 25.2% of sales.

    Our sales in 2024 amounted to $12.5 billion with a decrease of 16% compared to 2023, primarily reflecting a decline in market prices for our tubular products used in onshore drilling applications in the Americas, lower drilling activity in Mexico and Colombia, lower shipments for pipeline projects in Argentina and lower sales of mechanical pipes in Europe. On the other hand, sales in the Middle East reached a record level as Saudi Aramco replenished OCTG stocks and increased gas drilling activity. EBITDA and margins also declined to $3.1 billion, being further affected by a $107 million loss from a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Net income amounted to $2.1 billion, or 17% of net sales, and was affected by a reduction of $43 million from our participation in Ternium related to the same case.

    Cash flow provided by operating activities amounted to $2.9 billion during 2024. This was used to fund capital expenditures of $694 million, with the remainder distributed to shareholders through dividend payments of $758 million and share buybacks for $1,440 million in the year. We maintained a net cash position of $3.6 billion at the end of December 2024.

    Change of Chief Financial Officer

    Effective as of May 2, 2025, Mr. Carlos Gomez Alzaga will assume the position of Chief Financial Officer, replacing Ms. Alicia Mondolo, who will retire from this role.

    Mr. Gomez Alzaga, who has more than 20 years of experience in Administration and Finance at Tenaris, previously served as Regional CFO for Mexico and Central America, and Economic and Financial Planning Director, among other positions, and currently holds the position of Regional CFO for Argentina and South America.

    Ms. Mondolo will continue to serve as senior advisor to our Chairman and CEO.

    Paolo Rocca and the Board of Tenaris would like to express their gratitude and appreciation for Alicia´s contribution as CFO of Tenaris and her 41 years of service within the Techint Group.

    Market Background and Outlook

    Oil prices remain relatively stable (as they have done over the past two years) with OPEC+ maintaining their voluntary production cuts in the face of limited global demand growth. European and US natural gas prices have, however, risen as relatively cold winter weather and the cutoff of Russian supply have led to a rapid drawdown in inventories.

    These prices and the continuing balance between oil and gas demand and supply should continue to support overall investment in oil and gas drilling activity, as well as OCTG demand, at current levels, albeit with some regional nuances.

    In North America, consolidation among major operators and drilling efficiencies led to a drop in US drilling activity last year, which has now stabilized, while OCTG consumption per rig has been increasing. In Latin America, drilling activity is increasing in Argentina, as investment in pipeline and LNG infrastructure investment for the Vaca Muerta shale moves forward, while, in Mexico, it has been affected by financial constraints on Pemex. In the Middle East, some reduction in oil drilling has taken place in Saudi Arabia while gas drilling has risen, and, in Abu Dhabi, oil drilling is increasing.

    OCTG reference prices in North America, which fell steadily for two years until the second half of 2024, have so far recovered by 9% from their August low and could rise further following the US government’s announced reset of Section 232 tariffs on all imports of steel products without exception.

    In this environment, we expect our sales and EBITDA (excluding extraordinary effects) in the first quarter to be in line with the previous one before rising moderately in the second quarter. Beyond that, likely changes in US tariffs and their possible ramifications on trade flows will introduce a new dynamic with a high level of uncertainty for costs and prices to our results.

    Annual Dividend Proposal

    Upon approval of the Company´s annual accounts in April 2025, the board of directors intends to propose, for approval of the annual general shareholders’ meeting to be held on May 6, 2025, the payment of a dividend per share of $0.83 (in an aggregate amount of approximately $0.9 billion), which would include the interim dividend per share of $0.27 (approximately $0.3 billion) paid in November 2024. If the annual dividend is approved by the shareholders, a dividend of $0.56 per share ($1.12 per ADS), or approximately $0.6 billion, will be paid according to the following timetable:

    • Payment date: May 21, 2025
    • Record date: May 20, 2025
    • Ex-dividend for securities listed in Europe and Mexico: May 19, 2025
    • Ex-dividend for securities listed in the United States: May 20, 2025

    Analysis of 2024 Fourth Quarter Results

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 4Q 2024 3Q 2024
    		 4Q 2023
    Seamless 748 746 0% 760 (2%)
    Welded 164 191 (14%) 246 (33%)
    Total 913 937 (3%) 1,006 (9%)
               

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 4Q 2024 3Q 2024 4Q 2023
    (Net sales – $ million)          
    North America 1,131 1,273 (11%) 1,501 (25%)
    South America 595 484 23% 590 1%
    Europe 341 280 22% 302 13%
    Asia Pacific, Middle East and Africa 629 754 (17%) 805 (22%)
    Total net sales ($ million) 2,695 2,790 (3%) 3,198 (16%)
    Services performed on third party tubes ($ million) 93 97 (4%) 34 176%
    Operating income ($ million) 533 527 1% 780 (32%)
    Operating margin (% of sales) 19.8% 18.9%   24.4%  
               

    Net sales of tubular products and services decreased 3% sequentially and 16% year on year. Sequentially volumes sold decreased 3% while average selling prices decreased less than 1% as a favorable product mix offset price declines in North America. Sequentially, in North America sales declined due to lower prices throughout the region and lower activity in Mexico. In South America sales increased as higher sales in Brazil with shipments to the Raia pipeline and a recovery of OCTG offset lower sales for pipelines and the industrial market in Argentina. In Europe sales increased due to shipments to the Sakarya offshore line pipe project and higher sales of OCTG in Turkey. In Asia Pacific, Middle East and Africa sales declined due to lower sales in Saudi Arabia upon completion of inventory replenishment program and lower activity, partially offset by an increase in sales to the UAE.

    Operating results from tubular products and services amounted to a gain of $533 million in the fourth quarter of 2024 compared to a gain of $527 million in the previous quarter and a gain of $780 million in the fourth quarter of 2023. This quarter’s operating income includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Excluding this gain Tubes operating income would have amounted to $467 million (17.3% of sales) in the fourth quarter, a 12% sequential reduction following the decline in sales and margins. Margins declined due to the decline in prices and a more costly product mix.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 4Q 2024 3Q 2024 4Q 2023
    Net sales ($ million) 150 125 20% 217 (31%)
    Operating income ($ million) 25 10 156% 39 (36%)
    Operating margin (% of sales) 16.8% 7.9%   18.1%  
               

    Net sales of other products and services increased 20% sequentially and decreased 31% year on year. Sequentially, sales increased mainly due to higher sales of oil services in Argentina and coiled tubing.

    Selling, general and administrative expenses, or SG&A, amounted to $446 million, or 15.7% of net sales, in the fourth quarter of 2024, compared to $454 million, 15.6% in the previous quarter and $471 million, 13.8% in the fourth quarter of 2023. Sequentially, the decline in SG&A is mainly due to lower shipment costs due to a reduction in volumes shipped.

    Other operating results amounted to a net gain of $81 million in the fourth quarter of 2024, compared to a gain of $11 million in the previous quarter and a $5 million loss in the fourth quarter of 2023. The fourth quarter of 2024 includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Financial results amounted to a gain of $48 million in the fourth quarter of 2024, compared to a gain of $48 million in the previous quarter and a gain of $93 million in the fourth quarter of 2023. Financial result of the quarter is mainly attributable to a $42 million net finance income from the net return of our portfolio investments.

    Equity in earnings of non-consolidated companies generated a gain of $35 million in the fourth quarter of 2024, compared to a gain of $8 million in the previous quarter and a gain of $57 million in the fourth quarter of 2023. These results are mainly derived from our participation in Ternium (NYSE:TX). During the fourth quarter of 2024 the result from Ternium´s investment includes a $43 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Income tax charge amounted to $123 million in the fourth quarter of 2024, compared to $134 million in the previous quarter and $177 million in the fourth quarter of 2023.

    Cash Flow and Liquidity of 2024 Fourth Quarter

    Net cash generated by operating activities during the fourth quarter of 2024 was $492 million, compared to $552 million in the previous quarter and $0.8 billion in the fourth quarter of 2023. During the fourth quarter of 2024 cash generated by operating activities includes a net working capital increase of $37 million.

    With capital expenditures of $182 million, our free cash flow amounted to $310 million during the quarter. Following a dividend payment of $299 million and share buybacks of $454 million in the quarter, our net cash position amounted to $3.6 billion at December 31, 2024.

    Analysis of 2024 Annual Results

    The following table shows our net sales by business segment for the periods indicated below:

    Net sales ($ million) 12M 2024
    		 12M 2023
    		 Increase/(Decrease)
    Tubes 11,907 95% 14,185 95% (16%)
    Others 617 5% 684 5% (10%)
    Total 12,524   14,869   (16%)
               

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 12M 2024 12M 2023 Increase/(Decrease)
    Seamless 3,077 3,189 (4%)
    Welded 852 953 (11%)
    Total 3,928 4,141 (5%)
           

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 12M 2024 12M 2023 Increase/(Decrease)
    (Net sales – $ million)      
    North America 5,432 7,572 (28%)
    South America 2,294 3,067 (25%)
    Europe 1,143 1,055 8%
    Asia Pacific, Middle East and Africa 3,038 2,491 22%
    Total net sales ($ million) 11,907 14,185 (16%)
    Services performed on third party tubes ($ million) 484 165 193%
    Operating income ($ million) 2,305 4,183 (45%)
    Operating margin (% of sales) 19.4% 29.5%  
           

    Net sales of tubular products and services decreased 16% to $11,907 million in 2024, compared to $14,185 million in 2023 due to a 5% decrease in volumes and a 12% decrease in average selling prices, primarily reflecting a decline in market prices for our tubular products used in onshore drilling applications in the Americas, lower drilling activity in Mexico and Colombia, lower shipments for pipeline projects in Argentina and lower sales of mechanical pipes in Europe. On the other hand, sales in the Middle East reached a record level as Saudi Aramco replenished OCTG stocks and increased gas drilling activity.

    Operating results from tubular products and services amounted to a gain of $2,305 million in 2024 compared to a gain of $4,183 million in 2023. The decline in operating results is mainly due to the decline in average selling prices and the corresponding impact on sales and margins. Additionally, in 2024 our Tubes operating income includes a charge of $107 million from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas, included in other operating expenses.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 12M 2024 12M 2023 Increase/(Decrease)
    Net sales ($ million) 617 684 (10%)
    Operating income ($ million) 113 133 (15%)
    Operating margin (% of sales) 18.4% 19.5%  
           

    Net sales of other products and services decreased 10% to $617 million in 2024, compared to $684 million in 2023.

    Operating results from other products and services amounted to a gain of $113 million in 2024, compared to a gain of $133 million in 2023.

    Selling, general and administrative expenses, or SG&A, amounted to $1,905 million in 2024, representing 15.2% of sales, and $1,919 million in 2023, representing 12.9% of sales. SG&A expenses increased as a percentage of sales due to the 16% decline in revenues, mainly due to lower Tubes average selling prices and an increase of fixed costs.

    Other operating results amounted to a loss of $65 million in 2024, compared to a gain of $36 million in 2023. In 2024 we recorded a $107 million loss from provision for the ongoing litigation related to the acquisition of a participation in Usiminas. In 2023 other operating income includes a non-recurring gain of $33 million corresponding to the transfer of the awards related to the Company’s Venezuelan nationalized assets.

    Financial results amounted to a gain of $129 million in 2024, compared to a gain of $221 million in 2023. While net finance income increased due to a higher net financial position, net foreign exchange results decreased significantly in respect to the previous year.

    Equity in earnings of non-consolidated companies generated a gain of $9 million in 2024, compared to a gain of $95 million in 2023. These results were mainly derived from our equity investment in Ternium (NYSE:TX) and in 2024 were negatively affected by a $43 million loss from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas on our Ternium investment.

    Income tax amounted to a charge of $480 million in 2024, compared to $675 million in 2023. The lower income tax charge mainly reflects the reduction in results at several subsidiaries.

    Cash Flow and Liquidity of 2024

    Net cash provided by operating activities in 2024 amounted to $2.9 billion (including a reduction in working capital of $287 million), compared to cash provided by operations of $4.4 billion (including a reduction in working capital of $182 million) in 2023.

    Capital expenditures amounted to $694 million in 2024, compared to $619 million in 2023. Free cash flow amounted to $2.2 billion in 2024, compared to $3.8 billion in 2023.

    Following dividend payments of $758 million and share buybacks of $1.4 billion during 2024, our net cash position amounted to $3.6 billion at December 31, 2024.

    Conference call

    Tenaris will hold a conference call to discuss the above reported results, on February 20, 2025, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.

    To listen to the conference please join through one of the following options:
    ir.tenaris.com/events-and-presentations or
    https://edge.media-server.com/mmc/p/p836i5mj 

    If you wish to participate in the Q&A session please register at the following link:

    https://register.vevent.com/register/BIb7ae4609ff564d95a338d90813a3c8cc 

    Please connect 10 minutes before the scheduled start time.

    A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations

    Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

    Consolidated Income Statement

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
             
    Net sales 2,845,226 3,414,930 12,523,934 14,868,860
    Cost of sales (1,922,263) (2,120,591) (8,135,489) (8,668,915)
    Gross profit 922,963 1,294,339 4,388,445 6,199,945
    Selling, general and administrative expenses (445,988) (470,542) (1,904,828) (1,919,307)
    Other operating income 18,483 1,468 60,650 53,043
    Other operating expenses 62,919 (6,302) (125,418) (17,273)
    Operating income 558,377 818,963 2,418,849 4,316,408
    Finance income 51,331 63,621 242,319 213,474
    Finance cost (8,928) (19,759) (61,212) (106,862)
    Other financial results 5,777 49,249 (52,051) 114,365
    Income before equity in earnings of non-consolidated companies and income tax 606,557 912,074 2,547,905 4,537,385
    Equity in earnings of non-consolidated companies 35,283 56,859 8,548 95,404
    Income before income tax 641,840 968,933 2,556,453 4,632,789
    Income tax (122,709) 176,848 (479,680) (674,956)
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
             
    Attributable to:        
    Shareholders’ equity 516,213 1,129,098 2,036,445 3,918,065
    Non-controlling interests 2,918 16,683 40,328 39,768
      519,131 1,145,781 2,076,773 3,957,833
             

    Consolidated Statement of Financial Position

    (all amounts in thousands of U.S. dollars) At December 31, 2024   At December 31, 2023
             
    ASSETS          
    Non-current assets          
    Property, plant and equipment, net 6,121,471     6,078,179  
    Intangible assets, net 1,357,749     1,377,110  
    Right-of-use assets, net 148,868     132,138  
    Investments in non-consolidated companies 1,543,657     1,608,804  
    Other investments 1,005,300     405,631  
    Deferred tax assets 831,298     789,615  
    Receivables, net 205,602 11,213,945   185,959 10,577,436
    Current assets          
    Inventories, net 3,709,942     3,921,097  
    Receivables and prepayments, net 179,614     181,368  
    Current tax assets 332,621     256,401  
    Contract assets 50,757     47,451  
    Trade receivables, net 1,907,507     2,480,889  
    Derivative financial instruments 7,484     9,801  
    Other investments 2,372,999     1,969,631  
    Cash and cash equivalents 675,256 9,236,180   1,637,821 10,504,459
    Total assets   20,450,125     21,081,895
    EQUITY          
    Shareholders’ equity   16,593,257     16,842,972
    Non-controlling interests   220,578     187,465
    Total equity   16,813,835     17,030,437
    LIABILITIES          
    Non-current liabilities          
    Borrowings 11,399     48,304  
    Lease liabilities 100,436     96,598  
    Derivative financial instruments –     255  
    Deferred tax liabilities 503,941     631,605  
    Other liabilities 301,751     271,268  
    Provisions 82,106 999,633   101,453 1,149,483
    Current liabilities          
    Borrowings 425,999     535,133  
    Lease liabilities 44,490     37,835  
    Derivative financial instruments 8,300     10,895  
    Current tax liabilities 366,292     488,277  
    Other liabilities 585,775     422,645  
    Provisions 119,344     35,959  
    Customer advances 206,196     263,664  
    Trade payables 880,261 2,636,657   1,107,567 2,901,975
    Total liabilities   3,636,290     4,051,458
    Total equity and liabilities   20,450,125     21,081,895
               

    Consolidated Statement of Cash Flows

      Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
    (all amounts in thousands of U.S. dollars) 2024 2023 2024 2023
             
    Cash flows from operating activities        
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
    Adjustments for:        
    Depreciation and amortization 167,781 156,347 632,854 548,510
    Bargain purchase gain – – (2,211) (3,162)
    Income tax accruals less payments (160) (277,559) (222,510) (143,391)
    Equity in earnings of non-consolidated companies (35,283) (56,859) (8,548) (95,404)
    Interest accruals less payments, net 7,246 (8,554) (1,067) (53,480)
    Provision for the ongoing litigation related to the acquisition of participation in Usiminas (87,975) – 89,371 –
    Changes in provisions (19,808) (651) (25,155) 21,284
    Reclassification of currency translation adjustment reserve – (878) – (878)
    Changes in working capital (36,604) (65,697) 286,917 182,428
    Others, including net foreign exchange differences (22,100) (56,195) 39,794 (18,667)
    Net cash provided by operating activities 492,228 835,735 2,866,218 4,395,073
             
    Cash flows from investing activities        
    Capital expenditures (181,870) (166,820) (693,956) (619,445)
    Changes in advance to suppliers of property, plant and equipment 5,092 834 (10,391) 1,736
    Acquisition of subsidiaries, net of cash acquired – (161,238) 31,446 (265,657)
    Other investments at fair value – (1,126) – (1,126)
    Additions to associated companies – – – (22,661)
    Loan to joint ventures (1,414) (1,092) (5,551) (3,754)
    Proceeds from disposal of property, plant and equipment and intangible assets 9,646 3,858 28,963 12,881
    Dividends received from non-consolidated companies 20,674 25,268 73,810 68,781
    Changes in investments in securities 458,407 740,153 (821,478) (1,857,272)
    Net cash provided by (used in) investing activities 310,535 439,837 (1,397,157) (2,686,517)
             
    Cash flows from financing activities        
    Dividends paid (299,230) (235,128) (757,786) (636,511)
    Dividends paid to non-controlling interest in subsidiaries – – (5,862) (18,967)
    Changes in non-controlling interests 28 – 1,143 3,772
    Acquisition of treasury shares (454,462) (213,739) (1,439,589) (213,739)
    Payments of lease liabilities (17,248) (15,524) (68,574) (51,492)
    Proceeds from borrowings 344,222 365,455 1,870,666 1,723,677
    Repayments of borrowings (382,656) (406,774) (1,999,427) (1,931,747)
    Net cash used in financing activities (809,346) (505,711) (2,399,429) (1,125,007)
             
    (Decrease) increase in cash and cash equivalents (6,583) 769,861 (930,368) 583,549
             
    Movement in cash and cash equivalents        
    At the beginning of the year 681,306 864,012 1,616,597 1,091,433
    Effect of exchange rate changes (13,925) (17,276) (25,431) (58,385)
    (Decrease) increase in cash and cash equivalents (6,583) 769,861 (930,368) 583,549
    At December 31, 660,798 1,616,597 660,798 1,616,597
             

    Exhibit I – Alternative performance measures

    Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.

    EBITDA, Earnings before interest, tax, depreciation and amortization.

    EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

    EBITDA is calculated in the following manner:

    EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).

    EBITDA is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
    Income tax charge / (credit) 122,709 (176,848) 479,680 674,956
    Equity in earnings of non-consolidated companies (35,283) (56,859) (8,548) (95,404)
    Financial results (48,180) (93,111) (129,056) (220,977)
    Depreciation and amortization 167,781 156,347 632,854 548,510
    EBITDA 726,158 975,310 3,051,703 4,864,918
             

    Free Cash Flow

    Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

    Free cash flow is calculated in the following manner:

    Free cash flow = Net cash (used in) provided by operating activities – Capital expenditures.

    Free cash flow is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
    Net cash provided by operating activities 492,228 835,735 2,866,218 4,395,073
    Capital expenditures (181,870) (166,820) (693,956) (619,445)
    Free cash flow 310,358 668,915 2,172,262 3,775,628
             

    Net Cash / (Debt)

    This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

    Net cash/ debt is calculated in the following manner:

    Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments – Borrowings (Current and Non-Current).

    Net cash/debt is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) At December 31,
      2024 2023
    Cash and cash equivalents 675,256 1,637,821
    Other current investments 2,372,999 1,969,631
    Non-current investments 998,251 398,220
    Current borrowings (425,999) (535,133)
    Non-current borrowings (11,399) (48,304)
    Net cash / (debt) 3,609,108 3,422,235
         

    Operating working capital days

    Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.

    Operating working capital days is calculated in the following manner:

    Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365.

    Operating working capital days is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended December 31,
      2024 2023
    Inventories 3,709,942 3,921,097
    Trade receivables 1,907,507 2,480,889
    Customer advances (206,196) (263,664)
    Trade payables (880,261) (1,107,567)
    Operating working capital 4,530,992 5,030,755
    Annualized quarterly sales 11,380,904 13,659,720
    Operating working capital 145 134
         

    Giovanni Sardagna        
    Tenaris
    1-888-300-5432
    www.tenaris.com

    The MIL Network –

  • MIL-OSI: Ansys Announces Q4 and FY 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    / Q4 2024 Results

    • Revenue of $882.2 million
    • GAAP diluted earnings per share of $3.21 and non-GAAP diluted earnings per share of $4.44
    • GAAP operating profit margin of 40.3% and non-GAAP operating profit margin of 53.3%
    • Operating cash flows of $258.0 million and unlevered operating cash flows of $266.8 million
    • Annual contract value (ACV) of $1,094.6 million

    /FY 2024 Results

    • Revenue of $2,544.8 million
    • GAAP diluted earnings per share of $6.55 and non-GAAP diluted earnings per share of $10.91
    • GAAP operating profit margin of 28.2% and non-GAAP operating profit margin of 45.7%
    • Operating cash flows of $795.7 million and unlevered operating cash flows of $834.6 million
    • ACV of $2,563.0 million
    • Deferred revenue and backlog of $1,718.3 million on December 31, 2024

    PITTSBURGH, Feb. 19, 2025 (GLOBE NEWSWIRE) — ANSYS, Inc. (NASDAQ: ANSS), today reported fourth quarter 2024 revenue of $882.2 million, an increase of 10% in reported currency, or 11% in constant currency, when compared to the fourth quarter of 2023. For FY 2024, revenue growth was 12% in reported currency, or 13% in constant currency, when compared to FY 2023. For the fourth quarter of 2024, the Company reported diluted earnings per share of $3.21 and $4.44 on a GAAP and non-GAAP basis, respectively, compared to $3.14 and $3.94 on a GAAP and non-GAAP basis, respectively, for the fourth quarter of 2023. For FY 2024, the Company reported diluted earnings per share of $6.55 and $10.91 on a GAAP and non-GAAP basis, respectively, compared to $5.73 and $8.80 on a GAAP and non-GAAP basis, respectively, for FY 2023. Additionally, the Company reported fourth quarter and FY 2024 ACV growth of 15% and 11% in reported currency, respectively, or 16% and 13% in constant currency, respectively, when compared to the fourth quarter and FY 2023. Fourth quarter 2024 ACV of $1.1 billion contributed 43% of the full year 2024 ACV while Q1, Q2 and Q3 each contributed 16%, 20% and 21%, respectively. The Company expects double-digit FY 2025 ACV growth.

    As previously announced, on January 15, 2024, Ansys entered into a definitive agreement with Synopsys, Inc. (“Synopsys”) under which Synopsys will acquire Ansys. As previously announced by Synopsys, Ansys and Synopsys have received conditional clearance from the European Commission. The U.K. Competition and Markets Authority provisionally accepted our remedies towards a transaction approval in Phase 1. The State Administration for Market Regulation of the People’s Republic of China has officially accepted our filing, and its review of the proposed transaction is in process. We continue to work with the regulators in other relevant jurisdictions to conclude their reviews. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. As previously announced, in light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.

    The non-GAAP financial results highlighted represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures can be found later in this release.
     

    / Summary of Financial Results

    Ansys’ fourth quarter and fiscal year (FY) 2024 and 2023 financial results are presented below. The 2024 and 2023 non-GAAP results exclude the income statement effects of stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.

    Our results are as follows:

      GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    Revenue $ 882,174     $ 805,108     9.6 %   $ 2,544,809     $ 2,269,949     12.1 %
    Net income $ 282,688     $ 274,762     2.9 %   $ 575,692     $ 500,412     15.0 %
    Diluted earnings per share $ 3.21     $ 3.14     2.2 %   $ 6.55     $ 5.73     14.3 %
    Gross margin   91.8 %     91.3 %         89.0 %     88.0 %    
    Operating profit margin   40.3 %     41.4 %         28.2 %     27.6 %    
    Effective tax rate   21.3 %     15.4 %         19.8 %     15.5 %    
                                           
      Non-GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    Net income $ 391,044     $ 345,317     13.2 %   $ 959,252     $ 769,308     24.7 %
    Diluted earnings per share $ 4.44     $ 3.94     12.7 %   $ 10.91     $ 8.80     24.0 %
    Gross margin   94.6 %     94.3 %         93.1 %     92.2 %    
    Operating profit margin   53.3 %     53.0 %         45.7 %     42.6 %    
    Effective tax rate   17.5 %     17.5 %         17.5 %     17.5 %    
                                           
      Other Metrics
    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    ACV $   1,094,552   $   955,161   14.6 %   $ 2,563,029   $ 2,300,466   11.4 %
    Operating cash flows $   257,973   $   232,722   10.9 %   $    795,740   $    717,122   11.0 %
    Unlevered operating cash flows $   266,777   $   242,848   9.9 %   $    834,582   $    755,129   10.5 %
                                       

    / Key Long-Term Metrics

    The Company’s long-term outlook covering the years 2022 through 2025 provided at the 2022 Investor Update has been suspended given the pending transaction with Synopsys. Below is a summary of key metrics covering the years 2022 through 2024.

    • Consistent double-digit ACV growth with a 2022 through 2024 CAGR of 12.3% at actual exchange rates and 13.0% at 2022 exchange rates.
    • Unlevered operating cash flows grew faster than ACV with a 2022 through 2024 CAGR of 13.5%.
    • With FY 2024 unlevered operating cash flows of $834.6 million, cumulative 3-year unlevered operating cash flows (FY 2022 to 2024) are $2.2 billion.
    • Note: 2024 unlevered operating cash flows includes $28.2 million of cash outflows primarily associated with the pending transaction with Synopsys.
    Supplemental Financial Information

    / Annual Contract Value

    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023    		   % Change   % Change in
    Constant Currency
    ACV $    1,094,552   $      1,110,711   $        955,161   14.6 %   16.3 %
                       
    (in thousands, except percentages) FY
    2024    		   FY 2024 in
    Constant Currency    		   FY
    2023    		   % Change   % Change in
    Constant Currency
    ACV $    2,563,029   $      2,593,819   $    2,300,466   11.4 %   12.8 %
                                 

    *Subscription lease ACV includes the bundled arrangement of time-based licenses with related maintenance.
    **Perpetual and service ACV includes perpetual licenses, with related maintenance, and services.

    Recurring ACV includes both subscription lease ACV and all maintenance ACV (including maintenance from perpetual licenses). It excludes perpetual license ACV and service ACV.

      

    / Revenue

    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023    		   % Change   % Change in
    Constant Currency
    Revenue $        882,174   $         893,996   $        805,108   9.6 %   11.0 %
                       
    (in thousands, except percentages) FY
    2024    		   FY 2024 in
    Constant Currency    		   FY
    2023    		   % Change   % Change in
    Constant Currency
    Revenue $    2,544,809   $     2,570,207   $    2,269,949   12.1 %   13.2 %
                                 
    REVENUE BY LICENSE TYPE
                           
    (in thousands, except percentages) Q4 QTD
    2024    		   % of Total   Q4 QTD
    2023    		   % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        441,120   50.0 %   $        399,556   49.6 %   10.4 %   12.1 %
    Perpetual            102,295   11.6 %              102,721   12.8 %   (0.4)%   1.7 %
    Maintenance1            319,381   36.2 %              283,130   35.2 %   12.8 %   13.8 %
    Service              19,378   2.2 %                19,701   2.4 %   (1.6)%   (1.2)%
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024    		   % of Total   FY
    2023    		   % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        948,831   37.3 %   $        786,050   34.6 %   20.7 %   22.1 %
    Perpetual            315,085   12.4 %              302,698   13.3 %   4.1 %   5.1 %
    Maintenance1         1,209,217   47.5 %           1,103,523   48.6 %   9.6 %   10.6 %
    Service              71,676   2.8 %                77,678   3.4 %   (7.7)%   (7.4)%
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   

    1Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.

    REVENUE BY GEOGRAPHY
                           
    (in thousands, except percentages) Q4 QTD
    2024    		   % of Total   Q4 QTD
    2023    		   % of Total   % Change   % Change in Constant Currency
    Americas $        457,752   51.9 %   $        410,681   51.0 %   11.5 %   11.5 %
                           
    Germany              98,527   11.2 %                81,828   10.2 %   20.4 %   24.2 %
    Other EMEA            170,541   19.3 %              155,023   19.3 %   10.0 %   12.2 %
    EMEA            269,068   30.5 %              236,851   29.4 %   13.6 %   16.3 %
                           
    Japan              52,294   5.9 %                61,243   7.6 %   (14.6)%   (11.1)%
    Other Asia-Pacific            103,060   11.7 %                96,333   12.0 %   7.0 %   10.1 %
    Asia-Pacific            155,354   17.6 %              157,576   19.6 %   (1.4)%   1.8 %
                           
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024    		   % of Total   FY
    2023    		   % of Total   % Change   % Change in Constant Currency
    Americas $    1,297,367   51.0 %   $    1,106,242   48.7 %   17.3 %   17.3 %
                           
    Germany            209,714   8.2 %              199,068   8.8 %   5.3 %   6.6 %
    Other EMEA            445,791   17.5 %              406,719   17.9 %   9.6 %   9.8 %
    EMEA            655,505   25.8 %              605,787   26.7 %   8.2 %   8.8 %
                           
    Japan            184,547   7.3 %              203,013   8.9 %   (9.1)%   (2.1)%
    Other Asia-Pacific            407,390   16.0 %              354,907   15.6 %   14.8 %   16.9 %
    Asia-Pacific            591,937   23.3 %              557,920   24.6 %   6.1 %   10.0 %
                           
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   
    REVENUE BY CHANNEL
                   
      Q4 QTD
    2024    		   Q4 QTD
    2023    		   FY
    2024    		   FY
    2023
    Direct revenue, as a percentage of total revenue 79.7 %   74.5 %   75.2 %   73.9 %
    Indirect revenue, as a percentage of total revenue 20.3 %   25.5 %   24.8 %   26.1 %
                           

    / Deferred Revenue and Backlog

    (in thousands) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Current Deferred Revenue $            504,527   $            427,188   $            457,514   $            349,668
    Current Backlog                524,617                  475,604                  439,879                  424,547
    Total Current Deferred Revenue and Backlog            1,029,144                  902,792                  897,393                  774,215
                   
    Long-Term Deferred Revenue                  31,778                    24,150                    22,240                    20,765
    Long-Term Backlog                657,345                  536,855                  552,951                  410,697
    Total Long-Term Deferred Revenue and Backlog                689,123                  561,005                  575,191                  431,462
                   
    Total Deferred Revenue and Backlog $        1,718,267   $        1,463,797   $        1,472,584   $        1,205,677
                           

    / Currency

    The fourth quarter and FY 2024 revenue, operating income, ACV and deferred revenue and backlog, as compared to the fourth quarter and FY 2023, were impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. The currency fluctuation impacts on revenue, GAAP and non-GAAP operating income, ACV, and deferred revenue and backlog based on 2023 exchange rates are reflected in the tables below. Amounts in brackets indicate an adverse impact from currency fluctuations.

    (in thousands) Q4 QTD
    2024    		   FY
    2024
    Revenue $       (11,822 )   $       (25,398 )
    GAAP operating income $          (9,057 )   $       (19,588 )
    Non-GAAP operating income $          (9,076 )   $       (19,335 )
    ACV $       (16,159 )   $       (30,790 )
    Deferred revenue and backlog $       (38,306 )   $       (40,993 )
                   

    The most meaningful currency impacts are typically attributable to U.S. Dollar exchange rate changes against the Euro and Japanese Yen. Historical exchange rates are reflected in the charts below.

      Period-End Exchange Rates
    As of EUR/USD   USD/JPY
    December 31, 2024                    1.04                       157
    December 31, 2023                    1.10                       141
    December 31, 2022                    1.07                       131
           
      Average Exchange Rates
    Three Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.07                       153
    December 31, 2023                    1.08                       148
           
      Average Exchange Rates
    Twelve Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.08                       151
    December 31, 2023                    1.08                       140
           

    / GAAP Financial Statements

    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands) December 31, 2024   December 31, 2023
    ASSETS:      
    Cash & short-term investments $                      1,497,517   $                          860,390
    Accounts receivable, net                          1,022,850                                864,526
    Goodwill                          3,778,128                             3,805,874
    Other intangibles, net                              716,244                                835,417
    Other assets                          1,036,692                                956,668
    Total assets $                      8,051,431   $                      7,322,875
    LIABILITIES & STOCKHOLDERS’ EQUITY:      
    Current deferred revenue $                          504,527   $                          457,514
    Long-term debt                              754,208                                753,891
    Other liabilities                              706,256                                721,106
    Stockholders’ equity                          6,086,440                             5,390,364
    Total liabilities & stockholders’ equity $                      8,051,431   $                      7,322,875
               
    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Income
    (Unaudited)
      Three Months Ended   Twelve Months Ended
    (in thousands, except per share data) December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Revenue:              
    Software licenses $                   543,415     $                   502,277     $               1,263,916     $           1,088,748  
    Maintenance and service                       338,759                           302,831                        1,280,893                   1,181,201  
    Total revenue                       882,174                           805,108                        2,544,809                   2,269,949  
    Cost of sales:              
    Software licenses                         12,947                             10,909                             45,367                         40,004  
    Amortization                         21,801                             20,586                             88,560                         80,990  
    Maintenance and service                         37,940                             38,554                           145,892                       150,304  
    Total cost of sales                         72,688                             70,049                           279,819                       271,298  
    Gross profit                       809,486                           735,059                        2,264,990                   1,998,651  
    Operating expenses:              
    Selling, general and administrative                       314,009                           269,857                           995,340                       855,135  
    Research and development                       134,259                           126,288                           528,014                       494,869  
    Amortization                            5,623                                5,914                             23,748                         22,512  
    Total operating expenses                       453,891                           402,059                        1,547,102                   1,372,516  
    Operating income                       355,595                           333,000                           717,888                       626,135  
    Interest income                         14,636                                7,199                             51,131                         19,588  
    Interest expense                        (10,924 )                          (12,551 )                          (47,849 )                     (47,145 )
    Other expense, net                               (14 )                            (2,876 )                            (3,132 )                       (6,440 )
    Income before income tax provision                       359,293                           324,772                           718,038                       592,138  
    Income tax provision                         76,605                             50,010                           142,346                         91,726  
    Net income $                   282,688     $                   274,762     $                   575,692     $              500,412  
    Earnings per share – basic:              
    Earnings per share $                          3.23     $                          3.16     $                          6.59     $                     5.76  
    Weighted average shares                         87,455                             86,888                             87,313                         86,833  
    Earnings per share – diluted:              
    Earnings per share $                          3.21     $                          3.14     $                          6.55     $                     5.73  
    Weighted average shares                         88,137                             87,541                             87,895                         87,386  
                                   

    / Glossary of Terms

    Annual Contract Value (ACV): ACV is a key performance metric and is useful to investors in assessing the strength and trajectory of our business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making and in setting sales targets used for compensation. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV. ACV is composed of the following:

    • the annualized value of maintenance and subscription lease contracts with start dates or anniversary dates during the period, plus
    • the value of perpetual license contracts with start dates during the period, plus
    • the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
    • the value of work performed during the period on fixed-deliverable services contracts.

    When we refer to the anniversary dates in the definition of ACV above, we are referencing the date of the beginning of the next twelve-month period in a contractually committed multi-year contract. If a contract is three years in duration, with a start date of July 1, 2024, the anniversary dates would be July 1, 2025 and July 1, 2026. We label these anniversary dates as they are contractually committed. While this contract would be up for renewal on July 1, 2027, our ACV performance metric does not assume any contract renewals.

    Example 1: For purposes of calculating ACV, a $100,000 subscription lease contract or a $100,000 maintenance contract with a term of July 1, 2024 – June 30, 2025, would each contribute $100,000 to ACV for fiscal year 2024 with no contribution to ACV for fiscal year 2025.

    Example 2: For purposes of calculating ACV, a $300,000 subscription lease contract or a $300,000 maintenance contract with a term of July 1, 2024 – June 30, 2027, would each contribute $100,000 to ACV in each of fiscal years 2024, 2025 and 2026. There would be no contribution to ACV for fiscal year 2027 as each period captures the full annual value upon the anniversary date.

    Example 3: A perpetual license valued at $200,000 with a contract start date of March 1, 2024 would contribute $200,000 to ACV in fiscal year 2024.

    Backlog: Deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period.

    Deferred Revenue: Billings made or payments received in advance of revenue recognition.

    Subscription Lease or Time-Based License: A license of a stated product of our software that is granted to a customer for use over a specified time period, which can be months or years in length. In addition to the use of the software, the customer is provided with access to maintenance (unspecified version upgrades and technical support) without additional charge. The revenue related to these contracts is recognized ratably over the contract period for the maintenance portion and up front for the license portion.

    Perpetual / Paid-Up License: A license of a stated product and version of our software that is granted to a customer for use in perpetuity. The revenue related to this type of license is recognized up front.

    Maintenance: A contract, typically one year in duration, that is purchased by the owner of a perpetual license and that provides access to unspecified version upgrades and technical support during the duration of the contract. The revenue from these contracts is recognized ratably over the contract period.

    / Reconciliations of GAAP to Non-GAAP Measures (Unaudited)

      Three Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      809,486   91.8 %   $      355,595   40.3 %   $    282,688     $        3.21  
    Stock-based compensation expense               3,635   0.4 %              73,016   8.2 %             73,016                 0.83  
    Excess payroll taxes related to stock-based awards                     39   — %                1,272   0.2 %               1,272                 0.01  
    Amortization of intangible assets from acquisitions             21,801   2.4 %              27,424   3.1 %             27,424                 0.31  
    Expenses related to business combinations                     —   — %              12,988   1.5 %             12,988                 0.15  
    Adjustment for income tax effect                     —   — %                      —   — %             (6,344 )             (0.07 )
    Total non-GAAP $      834,961   94.6 %   $      470,295   53.3 %   $    391,044     $        4.44  
                                           

    1 Diluted weighted average shares were 88,137.

      Three Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      735,059   91.3 %   $     333,000   41.4 %   $    274,762     $        3.14  
    Stock-based compensation expense               3,413   0.4 %              63,358   7.9 %             63,358                 0.73  
    Excess payroll taxes related to stock-based awards                       4   — %                   271   — %                  271                    —  
    Amortization of intangible assets from acquisitions             20,586   2.6 %              26,500   3.3 %             26,500                 0.30  
    Expenses related to business combinations                     —   — %                3,664   0.4 %               3,664                 0.04  
    Adjustment for income tax effect                     —   — %                      —   — %           (23,238 )             (0.27 )
    Total non-GAAP $      759,062   94.3 %   $     426,793   53.0 %   $    345,317     $        3.94  
                                           

    1 Diluted weighted average shares were 87,541.

      Twelve Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   2,264,990   89.0 %   $     717,888   28.2 %   $    575,692     $        6.55  
    Stock-based compensation expense             14,313   0.6 %           270,900   10.7 %           270,900                 3.08  
    Excess payroll taxes related to stock-based awards                  506   — %                8,643   0.3 %               8,643                 0.10  
    Amortization of intangible assets from acquisitions             88,560   3.5 %           112,308   4.4 %           112,308                 1.28  
    Expenses related to business combinations                     —   — %             52,841   2.1 %             52,841                 0.60  
    Adjustment for income tax effect                     —   — %                      —   — %           (61,132 )             (0.70 )
    Total non-GAAP $   2,368,369   93.1 %   $ 1,162,580   45.7 %   $    959,252     $      10.91  
                                           

    1 Diluted weighted average shares were 87,895.

      Twelve Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   1,998,651   88.0 %   $     626,135   27.6 %   $    500,412     $        5.73  
    Stock-based compensation expense             13,337   0.6 %           221,891   9.9 %           221,891                 2.54  
    Excess payroll taxes related to stock-based awards                  307   0.1 %                5,541   0.2 %               5,541                 0.06  
    Amortization of intangible assets from acquisitions             80,990   3.5 %           103,502   4.5 %           103,502                 1.18  
    Expenses related to business combinations                     —   — %                9,422   0.4 %               9,422                 0.11  
    Adjustment for income tax effect                     —   — %                      —   — %           (71,460 )             (0.82 )
    Total non-GAAP $   2,093,285   92.2 %   $     966,491   42.6 %   $    769,308     $        8.80  
                                           

    1 Diluted weighted average shares were 87,386.

      Three Months Ended   Twelve Months Ended
    (in thousands) December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023    		   December 31,
    2022
    Net cash provided by operating activities $            257,973     $            232,722     $            795,740     $            717,122     $            631,003  
    Cash paid for interest                  10,671                      12,274                      47,081                      46,069                      20,844  
    Tax benefit                   (1,867 )                     (2,148 )                     (8,239 )                     (8,062 )                     (3,752 )
    Unlevered operating cash flows $            266,777     $            242,848     $            834,582     $            755,129     $            648,095  
                                           

    / Use of Non-GAAP Measures

    We provide non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income, non-GAAP diluted earnings per share and unlevered operating cash flows as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to these financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure, as applicable.

    We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and employees. In addition, many financial analysts that follow us focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported, these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

    While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all our competitors and may not be directly comparable to similarly titled measures of our competitors due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

    The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:

    Amortization of intangible assets from acquisitions. We incur amortization of intangible assets, included in our GAAP presentation of amortization expense, related to various acquisitions we have made. We exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by us after the acquisition. Accordingly, we do not consider these expenses for purposes of evaluating our performance during the applicable time period after the acquisition, and we exclude such expenses when making decisions to allocate resources. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our past reports of financial results as we have historically reported these non-GAAP financial measures.

    Stock-based compensation expense. We incur expense related to stock-based compensation included in our GAAP presentation of cost of maintenance and service; research and development expense; and selling, general and administrative expense. We also incur excess payroll tax expense related to stock-based compensation, which is an additional non-GAAP adjustment. Although stock-based compensation is an expense and viewed as a form of compensation, we exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance. Specifically, we exclude stock-based compensation during our annual budgeting process and our quarterly and annual assessments of our performance. The annual budgeting process is the primary mechanism whereby we allocate resources to various initiatives and operational requirements. Additionally, the annual review by our Board of Directors during which it compares our historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of our senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, we record stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, we can review, on a period-to-period basis, each manager’s performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Expenses related to business combinations. We incur expenses for professional services rendered in connection with acquisitions and divestitures, which are included in our GAAP presentation of selling, general and administrative expense. We also incur other expenses directly related to business combinations, including compensation expenses and concurrent restructuring activities, such as employee severances and other exit costs. These costs are included in our GAAP presentation of selling, general and administrative and research and development expenses. We exclude these acquisition-related expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance, as we generally would not have otherwise incurred these expenses in the periods presented as a part of our operations. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Non-GAAP tax provision. We utilize a normalized non-GAAP annual effective tax rate (AETR) to calculate non-GAAP measures. This methodology provides better consistency across interim reporting periods by eliminating the effects of non-recurring items and aligning the non-GAAP tax rate with our expected geographic earnings mix. To project this rate, we analyzed our historic and projected non-GAAP earnings mix by geography along with other factors such as our current tax structure, recurring tax credits and incentives, and expected tax positions. On an annual basis we re-evaluate and update this rate for significant items that may materially affect our projections.

    Unlevered operating cash flows. We make cash payments for the interest incurred in connection with our debt financing which are included in our GAAP presentation of operating cash flows. We exclude this cash paid for interest, net of the associated tax benefit, for the purpose of calculating unlevered operating cash flows. Unlevered operating cash flow is a supplemental non-GAAP measure that we use to evaluate our core operating business. We believe this measure is useful to investors and management because it provides a measure of our cash generated through operating activities independent of the capital structure of the business.

    Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

    We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

    GAAP Reporting Measure Non-GAAP Reporting Measure
    Gross Profit Non-GAAP Gross Profit
    Gross Profit Margin Non-GAAP Gross Profit Margin
    Operating Income Non-GAAP Operating Income
    Operating Profit Margin Non-GAAP Operating Profit Margin
    Net Income Non-GAAP Net Income
    Diluted Earnings Per Share Non-GAAP Diluted Earnings Per Share
    Operating Cash Flows Unlevered Operating Cash Flows
       

    Constant currency. In addition to the non-GAAP financial measures detailed above, we use constant currency results for financial and operational decision-making and as a means to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations on the reported results. To present this information, the 2024 period results for entities whose functional currency is a currency other than the U.S. Dollar were converted to U.S. Dollars at rates that were in effect for the 2023 comparable period, rather than the actual exchange rates in effect for 2024. Constant currency growth rates are calculated by adjusting the 2024 period reported amounts by the 2024 currency fluctuation impacts and comparing the adjusted amounts to the 2023 comparable period reported amounts. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our reported results to our past reports of financial results without the effects of foreign currency fluctuations.

    / About Ansys

    Our Mission: Powering Innovation that Drives Human Advancement™

    When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.

    / Forward-Looking Information

    This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are statements that provide current expectations or forecasts of future events based on certain assumptions. Forward-looking statements are subject to risks, uncertainties, and factors relating to our business which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.

    Forward-looking statements use words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,” “should,” “target,” or other words of similar meaning. Forward-looking statements include those about market opportunity, including our total addressable market, the proposed transaction with Synopsys, including the expected date of closing and the potential benefits thereof, and other aspects of future operations. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

    The risks associated with the following, among others, could cause actual results to differ materially from those described in any forward-looking statements:

    • our ability to complete the proposed transaction with Synopsys on anticipated terms and timing, including completing the associated divestiture of our PowerArtist RTL business and obtaining regulatory approvals, and other conditions related to the completion of the transaction with Synopsys;
       
    • the realization of the anticipated benefits of the proposed transaction with Synopsys, including potential disruptions to our and Synopsys’ businesses and commercial relationships with others resulting from the announcement, pendency, or completion of the proposed transaction and uncertainty as to the long-term value of Synopsys’ common stock;
       
    • restrictions on our operations during the pendency of the proposed transaction with Synopsys that could impact our ability to pursue certain business opportunities or strategic transactions, including tuck-in M&A;
       
    • adverse conditions in the macroeconomic environment, including inflation, recessionary conditions and volatility in equity and foreign exchange markets;
       
    • political, economic and regulatory uncertainties in the countries and regions in which we operate;
       
    • impacts from tariffs, trade sanctions, export controls or other trade barriers, including export control restrictions and licensing requirements for exports to China;
       
    • impacts resulting from the conflict between Israel and Hamas and other countries and groups in the Middle East, including impacts from changes to diplomatic relations and trade policy between the United States and other countries resulting from the conflict;
       
    • impacts from changes to diplomatic relations and trade policy between the United States and Russia or between the United States and other countries that may support Russia or take similar actions due to the conflict between Russia and Ukraine;
       
    • constrained credit and liquidity due to disruptions in the global economy and financial markets, which may limit or delay availability of credit under our existing or new credit facilities, or which may limit our ability to obtain credit or financing on acceptable terms or at all;
       
    • our ability to timely recruit and retain key personnel in a highly competitive labor market, including potential financial impacts of wage inflation and potential impacts due to the proposed transaction with Synopsys;
       
    • our ability to protect our proprietary technology; cybersecurity threats or other security breaches, including in relation to breaches occurring through our products and an increased level of our activity that is occurring from remote global off-site locations; and disclosure or misuse of employee or customer data whether as a result of a cybersecurity incident or otherwise;
       
    • volatility in our revenue due to the timing, duration and value of multi-year subscription lease contracts; and our reliance on high renewal rates for annual subscription lease and maintenance contracts;
       
    • declines in our customers’ businesses resulting in adverse changes in procurement patterns; disruptions in accounts receivable and cash flow due to customers’ liquidity challenges and commercial deterioration; uncertainties regarding demand for our products and services in the future and our customers’ acceptance of new products; delays or declines in anticipated sales due to reduced or altered sales and marketing interactions with customers; and potential variations in our sales forecast compared to actual sales;
       
    • our ability and our channel partners’ ability to comply with laws and regulations in relevant jurisdictions; and the outcome of contingencies, including legal proceedings, government or regulatory investigations and tax audit cases;
       
    • uncertainty regarding income tax estimates in the jurisdictions in which we operate; and the effect of changes in tax laws and regulations in the jurisdictions in which we operate;
       
    • the quality of our products, including the strength of features, functionality and integrated multiphysics capabilities; our ability to develop and market new products to address the industry’s rapidly changing technology, including the use of artificial intelligence and machine learning in our products as well as the products of our competitors; failures or errors in our products and services; and increased pricing pressure as a result of the competitive environment in which we operate;
       
    • investments in complementary companies, products, services and technologies; our ability to complete and successfully integrate our acquisitions and realize the financial and business benefits of such transactions; and the impact indebtedness incurred in connection with any acquisition could have on our operations;
       
    • investments in global sales and marketing organizations and global business infrastructure, and dependence on our channel partners for the distribution of our products;
       
    • current and potential future impacts of any global health crisis, natural disaster or catastrophe; the actions taken to address these events by our customers, our suppliers, and regulatory authorities; the resulting effects on our business, the global economy and our consolidated financial statements; and other public health and safety risks and related government actions or mandates;
       
    • operational disruptions generally or specifically in connection with transitions to and from remote work environments; and the failure of our technological infrastructure or those of the service providers upon whom we rely including for infrastructure and cloud services;
       
    • our intention to repatriate previously taxed earnings and to reinvest all other earnings of our non-U.S. subsidiaries;
       
    • plans for future capital spending; the extent of corporate benefits from such spending including with respect to customer relationship management; and higher than anticipated costs for research and development or a slowdown in our research and development activities;
       
    • our ability to execute on our strategies related to environmental, social, and governance matters, and meet evolving and varied expectations, including as a result of evolving regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, and changes in carbon markets; and
       
    • other risks and uncertainties described in our reports filed from time to time with the Securities and Exchange Commission (the SEC).  

    Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

    Visit https://investors.ansys.com for more information.

    ANSS-F

    Photos accompanying this announcement are available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/771cf00e-f710-44a2-8ccc-01eb3722147f

    https://www.globenewswire.com/NewsRoom/AttachmentNg/463dbc35-5aba-4a20-b2cb-2f5ed540482e

    https://www.globenewswire.com/NewsRoom/AttachmentNg/37428910-76eb-46be-b869-77a96fa55c58

    https://www.globenewswire.com/NewsRoom/AttachmentNg/37a46a1f-16f4-49b3-b28b-7074ac1615f3

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

    The MIL Network –

  • MIL-OSI USA: Attorney General Alan Wilson calls for action against counterfeit weight loss drug makersRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson today led a 37-state and territory bipartisan coalition requesting that the Food and Drug Administration take swift action against bad actors who are endangering consumers with counterfeit forms of the weight loss and diabetes drugs Mounjaro, Zepbound, Ozempic, and Wegovy (GLP-1 drugs).

    “The popularity of these drugs is growing at a rate that exceeds production by licensed manufacturers and has opened the door for copycat products from countries like China and India to flow through the U.S. supply chain that are seriously harming consumers,” said Attorney General Wilson.

    The letter states that “online retailers are illegally selling the active ingredients of GLP-1 drugs directly to consumers, without a prescription. These retailers claim that the active ingredients they sell are ’for research purposes only’ or ’not for human consumption’.[1] In reality, these companies advertise directly to consumers on social media, claiming that their products are an easier and more affordable way to obtain GLP-1 drugs.[2] Much like with counterfeit versions, these active ingredients come from unregulated, undisclosed sources and pose risks of contamination and inclusion of foreign substances.[3]”

    Attorney General Wilson also recently sent out a consumer alert warning consumers to be cautious when purchasing compounded Tirzepatide and Semaglutide, specifically in unapproved forms such as pills (only available via Rybelsus), sublingual drops, lozenges, or films taken under the tongue, topical skin patches, and nasal sprays.

    Attorney General Wilson said, “Protecting consumers is of utmost priority to me and the lengths that these counterfeiters are going to take advantage of consumers and endanger their health must be stopped.”

    The letter declares that the Food and Drug Administration has the expertise and resources to stop the bad conduct and deceptive practices by counterfeit drug manufacturers and that they should increase enforcement actions against compounding pharmacies illegally participating in this market. It also encourages the FDA to partner with state pharmacy boards to ensure compounded GLP-1 drugs are produced safely and in sanitary environments. 

    South Carolina co-led this bipartisan letter with Colorado, Illinois, and Tennessee and was joined by Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Virgin Islands, Virginia, West Virginia, and Wisconsin.

    You can read the full letter here.

    You can read the consumer alert here.

    [1]  See Jordyn Belcourt et al., Bypassing Prescribers and Pharmacists: Online Purchasing of Semaglutide and Tirzepatide “For Research Purposes,” Annals of Pharmacotherapy, p.1 (2024).

    [2] See https://www.wsj.com/health/healthcare/ozempic-mounjaro-no-prescription-websites-726b3928

    [3] https://www.nbcnews.com/health/health-news/ozempic-underworld-black-market-obesity-drugs-rcna174680

    MIL OSI USA News –

  • MIL-OSI Security: Lake Station Man Sentenced to 360 Months in Prison

    Source: Office of United States Attorneys

    HAMMOND – Matthew A. Bugielski, 26 years old, of Lake Station, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to Sexual Exploitation of Children, announced Acting United States Attorney Tina L. Nommay.

    Bugielski was sentenced to 360 months in prison, followed by 15 years of supervised release, and ordered to pay restitution to the victim of the offense.

    According to documents in the case, on or about June 19, 2023, Bugielski produced a sexually explicit image of a minor by employing, using, and inducing the minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Further, Bugielski distributed that sexually explicit image to others over the internet. On occasions separate from June 19, 2023, Bugielski distributed other images and videos of child sexual abuse materials over the internet to others.

    This case was investigated by Homeland Security Investigations, with assistance from the Indiana Internet Crimes Against Children Task Force, the Indiana State Police, the Indiana State Police Digital Forensics Unit, the Roanoke Police Department, the Huntington County Sheriff’s Office, the Indianapolis Metropolitan Police Department, the Lake Station Police Department, and the New Chicago Police Department. The case was prosecuted by Assistant United States Attorney Emily Morgan.

    The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

    MIL Security OSI –