China – Page 370 – NewzIntel.com

MIL-OSI China: Iran rejects report of proposing direct talks with US

Source: People’s Republic of China – State Council News

Iran’s Foreign Ministry spokesman Esmaeil Baghaei on Wednesday dismissed a recent media report and the speculations about a proposal by Tehran on direct nuclear talks with Washington and an imminent meeting between the Iranian and U.S. presidents.

He made the remarks to Iran’s Press TV while reacting to a recent report by the Israeli news website Ynet, which claimed that Iranian Foreign Minister Seyed Abbas Araghchi had approached U.S. Middle East envoy Steve Witkoff, requesting direct nuclear negotiations with the U.S. delegation due to “frustration” with Omani mediation efforts to bridge the gap between the two sides.

Baghaei also rejected media speculations that U.S. President Donald Trump, during his upcoming visit to Saudi Arabia next week, may meet with his Iranian counterpart, Masoud Pezeshkian.

The spokesman described the media report and rumors as “fabricated and baseless,” saying that “all updates on Iran’s diplomatic activities, including indirect talks with the United States, are communicated transparently, professionally, and in a timely manner by the (Iranian) Foreign Ministry.”

The delegations of Iran and the United States, headed by Araghchi and Witkoff, have so far held three rounds of indirect talks. The first and third rounds were held in the Omani capital Muscat on April 12 and April 26, and the second one in Rome on April 19.

The fourth round, which was originally scheduled for May 3 in Rome, was postponed due to what the mediator Oman described as “logistical reasons.”

Nour News, affiliated with Iran’s Supreme National Security Council, reported Tuesday that the fourth round of indirect talks between Iran and the United States would be held in Muscat on Sunday. However, Baghaei said earlier on Wednesday that the definite date and venue of the fourth round of Iran-U.S. dialogue have not been determined yet.

MIL OSI China News –

May 8, 2025

MIL-OSI China: Belgrade honors Chinese journalists killed in 1999 NATO bombing on 26th anniversary

Source: People’s Republic of China – State Council News

Wreaths and white roses were laid on Wednesday at a memorial plaque in Belgrade to honor three Chinese journalists killed in the 1999 NATO bombing of the Chinese Embassy, as Serbia and China marked the 26th anniversary of the event.

The commemoration was held at the China Cultural Center in Belgrade, constructed on the site of the former embassy in New Belgrade. Leading the tribute were Serbian Minister of Labour, Employment, Veteran and Social Affairs Milica Djurdjevic Stamenkovski and Chinese Ambassador to Serbia Li Ming.

Stamenkovski emphasized that the anniversary serves as a solemn reminder of the innocent lives lost and a symbol of the enduring friendship between the two nations.

“Let today be a reminder of our shared suffering, but also of the strength of our alliance,” she said. “Only together, united and respecting the choices and will of all peoples, will Serbia and China continue to strengthen their partnership for mutual benefit, in service of our national interests, stability, prosperity, and justice.”

She described the May 7, 1999, bombing on the Chinese Embassy as a crime committed against China and its people, stressing that it violated the foundations of the UN Charter and numerous international conventions.

Stamenkovski also expressed pride in Serbia’s role as China’s first free trade partner in Central and Eastern Europe, and the first European country to elevate bilateral ties to the highest level.

Ambassador Li condemned the airstrike as a grave violation of international law and remembered the journalists Shao Yunhuan, Xu Xinghu, and Zhu Ying, who lost their lives in the attack. More than 20 Chinese diplomats were also injured.

He recalled that NATO, under U.S. leadership, launched a 78-day bombing campaign under the pretext of humanitarianism, causing the deaths of over 2,000 civilians, injuring more than 6,000, and displacing nearly one million people.

Li described the bombing as a blow to both Chinese and Serbian sovereignty, but emphasized that the two nations have responded with resilience and have made joint progress since then.

Contrasting the destruction of war with today’s flourishing bilateral ties, Li highlighted how the two countries are now focused on rebuilding and revitalization. He also underscored the strength of their 70-year friendship.

Also present at the ceremony were Belgrade Deputy Mayor Vesna Vidovic, representatives from the Serbian Journalists’ Association, the Veterans’ Association, Chinese enterprises and local residents. They joined in laying flowers in remembrance of the victims.

On May 7, 1999, the clearly marked Chinese Embassy in Belgrade was attacked by NATO missiles during the military alliance’s bombing campaign against then Federal Republic of Yugoslavia. The attack destroyed both the main and auxiliary buildings of the embassy. A memorial plaque was installed at the site in 2009 to honor the victims.

MIL OSI China News –

May 8, 2025

MIL-OSI USA: Feenstra Votes to End DHS Funding for American Universities that Host Confucius Institutes

Source: United States House of Representatives – Representative Randy Feenstra (IA-04)

WASHINGTON, D.C. – Today, U.S. Rep. Randy Feenstra (R-Hull) voted for, and the U.S. House of Representatives passed, the DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act.

This legislation would end funding from the U.S. Department of Homeland Security to any U.S. university that hosts a Confucius Institute or maintains relationships with Chinese entities of concern.

“From buying up our farmland to surveilling our military bases, the Chinese Communist Party is leading an aggressive campaign to destabilize the United States and undermine our national security. The establishment of so-called Confucius Institutes is an alarming way that the CCP is infiltrating our universities, targeting our students, and spreading misinformation on college campuses,” said Rep. Feenstra. “The CCP poses a serious threat to our country, which is why I voted to permanently end DHS funding for American universities that host Confucius Institutes or maintain questionable relationships with other Chinese entities of concern. We should not be encouraging – and taxpayers certainly should not be funding – CCP propaganda on our college campuses or anywhere in our country. This legislation puts taxpayers and our national security first while holding China accountable for its deceptive actions.”

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MIL OSI USA News –

May 8, 2025

MIL-OSI USA: Rep. Pfluger Delivers Remarks on Confucius Institutes

Source: United States House of Representatives – Congressman August Pfluger (TX-11)

Watch his remarks here or read them as prepared for delivery below.

Mr. Speaker, I rise in support of my bill, H.R. 881, the DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act. I have long been concerned about the threats the Chinese Communist Party (CCP) poses to our homeland.

In the Homeland Security Committee and on my Subcommittee on Counterterrorism and Intelligence, we have heard from a wide array of national security experts and law enforcement officials who have continuously raised alarms about the CCP’s increasing subversive activities inside our country through organizations like the CCP’s Confucious Institutes, the Thousand Talents Program, and other CCP-affiliated groups.

While Confucius Institutes are presented as centers for promoting Chinese language and culture, it is proven that they have been used to steal critical research, recruit talent for Military-Civil fusion enterprises, conduct espionage, commit transnational repression, and influence academic institutions to the benefit of the CCP.

At their peak, the United States hosted approximately 118 Confucius Institutes, primarily at colleges and universities. There are fewer than 14 active Confucius Institutes today, but the danger remains. Many of these programs have rebranded themselves within universities with the same mission as before: to subvert national security and expand CCP influence operations.

Another example is the CCP’s Thousand Talents Program, which the FBI has listed as the most prolific sponsor of state-sponsored talent recruitment programs that bring outside knowledge and innovation back to China, often through stealing trade secrets, breaking export control laws, or violating conflict-of-interest policies. These talent recruitment programs are a win-win for China. China wins twice. First, U.S. taxpayers are funding this research, not China. Second, China then uses the research it would not otherwise have to advance its own economic and military interests.

Today, we are debating H.R. 881, my legislation that would prohibit DHS from funding American universities that host a Confucius Institute or Thousand Talents Program or maintain relationships with Chinese entities of concern. H.R. 881 also ensures that universities prioritize the education of their students over any partnerships with these institutes.

This legislation passed the House last year with bipartisan support, and this year, H.R. 881 passed through the Committee on Homeland Security with unanimous bipartisan support. I want to thank Chairman Green, Ranking Member Thompson, my counterpart on the Subcommittee on Counterterrorism and Intelligence, Ranking Member Magaziner, and the Committee on Homeland Security staff for moving this critical legislation forward.

The DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act would play a vital role in protecting our students, intellectualproperty, and national security. Together, this effort demonstrates a unified, bipartisan way to protect our nation from the insidious influence of the CCP and that our students, our intellectual property, and our national security are all protected from the malign influence of the CCP.

I urge all of my Republican and Democrat colleagues to support this legislation. Thank you, and I reserve the balance of my time.

Background:

Confucius Institutes have historically been presented as centers for promoting Chinese language and culture, but unfortunately, they have proven to be far from that. Confucius Institutes have been used to steal critical research, recruit talent for Military-Civil fusion enterprises, conduct espionage, commit transnational repression, and influence academic institutions to the benefit of the CCP.

At their peak, the United States hosted approximately 118 Confucius Institutes, primarily at colleges and universities. There are fewer than 14 active Confucius Institutes today, but the danger remains. Many of these programs have rebranded themselves within universities with the same mission as before: to subvert national security and expand CCP influence operations.

Chairman Pfluger has led this legislation since the 117th Congress. Earlier this year, he reintroduced the “DHS Restrictions on Confucius Institutes Act, and held a CTI Subcommittee hearing to combat threats posed by the Chinese Communist Party to U.S. National Security. During the hearing, Chairman Pfluger had experts agree with the need for his legislation, stating that federal funding should be restricted from universities with Confucius institutes.

Following the hearing, Chairman Pfluger’s legislation passed through the House Committee on Homeland Security’s legislative markup with bipartisan support.

MIL OSI USA News –

May 8, 2025

MIL-OSI USA: Warner, Kaine, Colleagues Introduce Bipartisan Bill to Boost America’s Businesses and Economic Competitiveness

US Senate News:

Source: United States Senator for Virginia Tim Kaine
WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine (both D-VA) and 34 of their Senate colleagues introduced the bipartisan American Innovation and Jobs Act, legislation that will expand and strengthen research and development (R&D) by small businesses and startups throughout the United States by extending and making permanent an expired tax cut that allowed businesses investing in R&D to claim tax credits and deductions when filing federal taxes.
“Research and development is critical to the success and competitiveness of American businesses and to protecting our status as a global leader in innovation and tech—especially as adversaries like China race to catch up,” said the senators. “At a time when President Trump is slashing federal funding for important research initiatives in everything from medicine to technology, we’re committed to doing all that we can to fight back. That includes introducing this bipartisan legislation to provide tax incentives to support the research and development investments we need to create jobs and stay on top.”
The American Innovation and Jobs Act would extend and make permanent the ability of small businesses and startups that invest in R&D to claim a tax credit or deduct their investments when filing federal taxes. It would also permanently restore full expensing of R&D costs while allowing businesses to retroactively take advantage of the deduction for the tax years during which full expensing had expired.
Specifically, the American Innovation and Jobs Act would:
Expand support for innovative startups by:
Immediately doubling the cap on the refundable R&D tax credit from $250,000 to $500,000, and ultimately raising it to $750,000 over ten years.
Expanding access to the R&D tax credit for startups by lowering certain threshold needed to qualify.

Expand the number of startups eligible to use the refundable R&D credit by:
Increasing the eligibility threshold from $5 million to $15 million in gross receipts.
Increasing the period during which startups can claim the credit from 5 years to 8 years after beginning to generate at least $25,000 in revenue.

The legislation is endorsed by the R&D Coalition, which includes companies of all sizes and many trade associations, including the U.S. Chamber of Commerce, the Business Roundtable, the National Association of Manufacturers, and the Information Technology Industry Council.
In addition to Warner and Kaine, the legislation is cosponsored by U.S. Senators Todd Young (R-IN), Maggie Hassan (D-NH), James Lankford (R-OK), Jeanne Shaheen (D-NH), Steve Daines (R-MT), John Barrasso (R-WY), Jacky Rosen (D-NV), Thom Tillis (R-NC), Gary Peters (D-MI), Roger Marshall (R-KS), Alex Padilla (D-CA), Tommy Tuberville (R-AL), Patty Murray (D-WA), John Kennedy (R-LA), Amy Klobuchar (D-MN), Pete Ricketts (R-NE), Mark Kelly (D-AZ), Katie Britt (R-AL), Shelley Moore Capito (R-WV), Catherine Cortez Masto (D-NV), Deb Fischer (R-NE), Tammy Baldwin (D-WI), Jerry Moran (R-KS), Ben Ray Luján (D-NM), Bill Hagerty (R-TN), Chris Coons (D-DE), Markwayne Mullin (R-OK), Elissa Slotkin (D-MI), Roger Wicker (R-MS), Angus King (I-ME), Ted Budd (R-NC), Jon Ossoff (D-GA), Jon Husted (R-OH), and Martin Heinrich (D-NM).
Full text of the bill is available here.

MIL OSI USA News –

May 8, 2025

MIL-OSI USA: Ricketts Statement on Trump Administration’s Plan to Rescind Biden AI Diffusion Rule

US Senate News:

Source: United States Senator Pete Ricketts (Nebraska)

May 7, 2025

WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE) released the following statement after it was announced that the Trump administration plans to rescind the Biden administration’s AI Diffusion rule (AIDR):
“I am pleased to hear that the Trump administration plans to rescind Biden’s AI Diffusion rule. I look forward to working with the administration to propose a new rule that grows America’s AI leadership and promotes partnership with our friends and allies. We must prevent Communist China from capturing the world market and taking the lead on this technology. We must also make America the world capital of AI.”
Ricketts recently led a letter to Commerce Secretary Howard Lutnick regarding the need to withdraw this rule before the May 15th compliance deadline.

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MIL OSI USA News –

May 8, 2025

MIL-Evening Report: Keith Rankin Chart Analysis – International Trade over time: gifts with strings

Analysis by Keith Rankin.

Chart by Keith Rankin.

The ‘see-saw’ chart above shows the accumulated ‘excess benefits’ that Aotearoa New Zealand, and a few other countries, have enjoyed from international trade over the last 40 years. These are benefits arising from ‘unbalanced trade’ which are in addition to the regular benefits – arising from efficient specialisation – of ‘balanced’ world trade. Real world trade is a mix of ‘balanced’ (paid for) and ‘unbalanced’ (on forever-credit).

The excess benefit data shown is an inflation-adjusted accumulation of the United States’ current account deficits. We remember that the benefits of trade are what (goods and services) you get, not what you give up.

We note here that the United States is a ‘winner’; not the loser which Donald Trump claims that it has been. The United States has enjoyed $70,000 worth of excess trade benefits over 40 years, per American. And it is projected to enjoy another $10,000 worth of excess trade benefits over the next seven years.

So, what is Donald Trump grumping about? Rhetorically, why does he aspire that ‘America’ should be like Germany?

The biggest losers, as shown here, are a group of northwest European countries, plus Taiwan. (For lack of a complete set of data from 1984, China is not shown here. But China would fit into the chart next to Malaysia. While China has significant accumulated trade surpluses, these are spread over a very large population.) The losers are the countries which have – in effect – ‘given’ away lots of stuff; exports for which they have not received anything in return and will probably never receive anything in return.

The 2030 projections show that these ‘surplus’ countries will continue to under-import; they are not projected to claim the imports that are rightfully theirs to enjoy. Rather, the deficit countries will most likely continue to enjoy these excess unpaid-for benefits.

(There are at least two other ‘surplus countries’ – countries like Germany and Sweden – which would be ‘off the chart’: Singapore and Norway. And one other deficit country: Türkiye.)

Discussion

With international trade in any given year, surplus countries ‘give’ goods and services to deficit countries. They give ‘with strings’. The most obvious form of ‘string’ is a return gift next year; a fully commercial kind of ‘string’ would be a return gift with interest.

For example, if Sweden exports US$1,100 million worth of stuff (ie goods and services) to New Zealand in 2025, and New Zealand exports $1,000 million worth of stuff to Sweden in 2025, then the 2025 gift is $100 million worth of stuff from Sweden to New Zealand. (In technical language, and from New Zealand’s viewpoint this gift from Sweden is called a bilateral trade deficit; from Sweden’s point of view, it’s a trade surplus.)

A return gift with 3% interest would be $103 million worth of stuff from New Zealand to Sweden. (This would be a New Zealand bilateral trade surplus – a deficit for Sweden – in 2026.) The bilateral – ie two-country – ledger would be settled. Effectively, in this example, Sweden lends $100 million of stuff to New Zealand in 2025, and New Zealand repays the loan, with interest, in 2026. Gifts ‘with strings’ are debts.

There are two potential problems. The first problem is that New Zealand may not be able to sufficiently increase, in one year, its exports to Sweden (eg from $1,000 million to $1,203 million, assuming unchanged imports from Sweden). One solution might be for New Zealand to increase its exports by that amount to other countries, and for other countries to export $203 million more to Sweden. But that increase in exports of $203 million might still be too difficult for New Zealand to accomplish in 2026, regardless of who the buyers are. New Zealand might need to borrow more in 2026, (or to import less,) or to repay its 2025 trade debits further into the future.

Indeed, New Zealand might prefer something like a 40-year mortgage. New Zealand could run trade surpluses re Sweden (ie Sweden running deficits) of about 4,358,000 each year for 40 years. In total, over the 40 years from 2026 to 2065, Sweden would receive stuff worth $174,323,300 as its ‘return gift’.

The second (much larger) ‘problem’ is that Sweden might not want to run a trade deficit at all; that is, Sweden might not want to be repaid (except, that is, in some imaginary never-never timeframe). Whether this qualifies as a problem depends on a person’s belief-system. If New Zealand is perfectly happy to receive – into the indefinite future – annual increments of unpaid-for goods and services, and Sweden prefers to keep supplying such stuff without material recompense in foreseeable time, then this sort of unbalanced trade can be categorised as a win-win outcome.

Sweden might not want New Zealand’s (or anybody else’s) debt to it to be repaid; in 2026, or ever. Sweden, happy to run a trade surplus in 2025, might actually prefer to keep making annual ‘gifts’ to New Zealand (and other countries). While each of these gifts would be technically an addition to New Zealand’s debt to Sweden, New Zealand would be able to – maybe, be obliged to – delay settlement of any of that debt (let alone all of it) indefinitely.

In this example, Sweden is a ‘mercantilist’ country; mercantilist means ‘merchant capitalist’, the social science analogue of alchemy. Indeed, Sweden actually is a mercantilist country. Its preference is to accumulate ‘promises’, whereas countries like the United States and New Zealand have been accumulating (and enjoying) imported goods and services.

Mercantilists of yore sought to accumulate ‘treasure’, especially gold. Indeed, in the quarter millennium from 1500 to 1750, economic policy and foreign policy – especially but not only in European power centres – was to become rich by accumulating treasure hoards.

Mercantilism never went away, despite having been debunked by Adam Smith and others around 250 years ago (The Wealth of Nations was published in 1776). In that golden age of mercantilism, the Dutch – the Netherlanders – succeeded par excellence. (Part of their success was in exporting military hardware and software – big guns, and big military knowhow – to all sides in the Thirty Years War of 1618 to 1648. Is that what the USA will end up mimicking?) As we can see from the chart, the Dutch still do incur some of the world’s biggest export surpluses. Instead of accumulating treasure as they did in the seventeenth century – as gold and silver bullion and specie – they now accumulate ‘virtual treasure’ or ‘virtual gold’. Virtual gold is the whole set of ‘promises’ and ‘titles’ – including money and real gold – that are formally known as ‘financial assets’.

New Zealand and America, and others, get the consumable loot. Sweden and Netherlands and Germany get the paperwork. Everyone should be happy.

The dark cloud on the horizon comes when the Americas and the Aotearoas of the world start wanting to be like Germany and Sweden. Then indeed our happyish world descends into a ‘race-to-the-bottom’. Not every country can sit with Germany and its neighbours at the bottom of the above chart. This can be thought of as a see-saw chart: someone has to be at the top; we cannot all be at the bottom.

If some countries have forever-surpluses, other countries must have forever-deficits. Getting to benefit from other countries’ largesse – as New Zealand and America do – may seem like a problem to some. But we should remember that the driving force of the capitalist market system is to want – indeed, to demand – consumable goods and services. Someone has to be able to benefit from all the hard work and sacrifice of others.

*******

Keith Rankin (keith at rankin dot nz), trained as an economic historian, is a retired lecturer in Economics and Statistics. He lives in Auckland, New Zealand.

MIL OSI Analysis – EveningReport.nz –

May 8, 2025

MIL-OSI Russia: The US Federal Reserve left the interest rate unchanged at 4.25-4.5 percent.

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

WASHINGTON, May 7 (Xinhua) — The U.S. Federal Reserve on Wednesday left its target range for the federal funds rate unchanged at 4.25 percent to 4.5 percent amid expectations that the Trump administration’s tariff policies will lead to higher inflation and slower economic growth.

“Uncertainty about the economic outlook is increasing,” the Federal Open Market Committee, the Fed’s policymaking arm, said in a statement following its two-day meeting.

“The Committee closely monitors the risks to both sides of its dual mandate and believes that the threats to higher unemployment and inflation have increased,” the statement said.

With tariff chaos deepening and inflation risks resurfacing, economists and market participants are increasingly concerned about a slowdown in economic growth, and some are worried about a hit to the labor market and a possible recession. In this regard, Fed officials have also expressed their concerns.

“I wouldn’t be surprised if you start to see more layoffs and higher unemployment going forward, especially if the big tariffs come back,” Fed Governor Christopher Waller said in a recent interview with Bloomberg. “I would expect to see more rate cuts, and sooner rather than later, as soon as there’s a significant deterioration in the labor market,” he added. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI Russia: Leaders of Belarus and Guinea-Bissau held talks in Minsk

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

MINSK, May 7 (Xinhua) — Belarusian President Alexander Lukashenko and Guinea-Bissau President Oumarou Sisoko Embalo held talks in Minsk on Wednesday. The Belarusian leader announced his readiness to establish cooperation with the African country in all areas. The corresponding information was published by the press service of the Belarusian head of state.

According to A. Lukashenko, Belarus is ready to supply Guinea-Bissau with a wide range of necessary products, including food, clothing, footwear, and industrial goods. “I know that you really need to develop agriculture to the highest level. You probably understand very well that we are capable of providing you with the appropriate technological and technical support and services. You can count on us in this regard,” A. Lukashenko said.

In turn, U. Sisoku Embalo noted that Belarus’s vast experience in developing the agro-industrial complex is of great interest to his country. “We know that Belarus has accumulated vast experience in the agro-industrial complex. We would like to take advantage of this experience and thus open a kind of door to the future. I very much count on cooperation with Belarus,” he emphasized.

On the same day, representatives of Belarus and Guinea-Bissau signed documents aimed at strengthening bilateral cooperation. Among them is an intergovernmental agreement on the abolition of visas for holders of diplomatic, official and service passports. A memorandum of cooperation in the field of agriculture was also signed. In addition, the parties signed a memorandum of cooperation between the Ministry of Industry of Belarus and the Ministry of Trade and Industry of Guinea-Bissau. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI Russia: Xi Jinping congratulates participants of Chinese-Russian cultural and humanitarian exchange event

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

BEIJING, May 7 (Xinhua) — Chinese President Xi Jinping on Wednesday sent a congratulatory message to participants in a China-Russia cultural and humanitarian exchange event dedicated to the 80th anniversary of the victory in the Chinese People’s War of Resistance Against Japanese Aggression and the Great Patriotic War.

In his message, the Chinese leader noted that 80 years ago, the Chinese and Russian peoples jointly made an indelible historical contribution to the victory in the World Anti-Fascist War and sealed with blood an unbreakable great friendship, laying a solid foundation for the high-level development of interstate relations.

Xi said that after 80 years, thanks to the joint efforts of both sides, China-Russia ties have shown new vitality and set a new model for major power relations.

He stressed that strengthening cultural and humanitarian exchanges is of great and profound significance for increasing mutual understanding, strengthening good-neighborliness and friendship, and increasing public and popular support for the development of bilateral relations.

The Chinese President expressed the hope that the media of both countries will take on a common mission and move forward hand in hand, conducting cultural and humanitarian exchanges that connect peoples, are close to life and filled with warmth. According to the Chinese leader, this will give new impetus to deepening mutual understanding and friendship between the peoples of the two countries, add new luster to the Sino-Russian relations of comprehensive strategic partnership and coordination in the new era, and make new contributions to building a community with a shared future for mankind.

The event was organized by China Media Corporation and the All-Russian State Television and Radio Broadcasting Company.

On the same day, Russian President Vladimir Putin also sent a congratulatory message to the participants of the event. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI USA: Senators Ricketts, Coons Lead Tabletop Exercise on Hypothetical Chinese Energy Quarantine Against Taiwan

US Senate News:

Source: United States Senator Pete Ricketts (Nebraska)
WASHINGTON, D.C. – Yesterday, U.S. Senator Pete Ricketts (R-NE), Chairman of the Senate Foreign Relations Subcommittee on East Asia, organized a tabletop exercise with Senator Chris Coons (D-DE) and other senators. The two-hour exercise tasked the participating senators with responding to a simulated Chinese campaign designed to strangle Taiwan’s energy imports. The exercise was led by the Foundation for Defense of Democracies (FDD). FDD plans to convene a follow-on simulation this summer in Taipei with Taiwanese officials, including members of Taiwan’s National Security Council. After the exercise completed, Senator Ricketts gave the following comments:
“This exercise reflected the real risk that a Chinese energy quarantine presents to Taiwan,” said Ricketts. “Beijing would like nothing more than to force unification without war. However, Congress can play a decisive role in supporting our Taiwanese partners while also complicating Xi Jinping’s plans to coerce Taiwan into capitulation.”
Senate Foreign Relations Committee East Asia Subcommittee’s Tabletop exercise in Washington, DC on May 6, 2025. (Official U.S. Senate photo by Erin Sutherland)Ricketts also underscored the threat posed by Communist China’s dictator Xi Jinping, who has signaled his military to be ready to seize Taiwan by 2027.
“We seek peace and stability across the Taiwan Strait,” said Ricketts. “Increasing aggression from Communist China continues to threaten this long-standing status quo. Simulations and exercises like the one we did today are important for understanding the real-world impact of policy decisions. By working through potential actions by Communist China and planning an American response, we can take the steps necessary to deter this aggression.”
“As Senator Ricketts and I saw on our travel to East Asia last month, Taiwan plays a central role in ensuring a free and open Indo-Pacific in the face of Chinese aggression,” said Senator Coons. “This exercise made clear the sheer number of tools China has at its disposal to threaten Taiwan and the many steps the United States and our partners and allies should take to prepare. It also demonstrated that Congress will have a clear role to play in shaping our nation’s response to any crisis in the Indo-Pacific region. Unified, bipartisan support for Taiwan in Congress is more important today than ever before.”
BACKGROUND
Last month, Senator Ricketts led a congressional delegation (CODEL) trip to Taiwan and the Philippines with Senators Coons and Ted Budd (R-NC). During the trip, the three senators met with senior Taiwanese officials including President Lai and Vice President Hsaio.
This tabletop exercise continues the work that Senators Ricketts and Coons are doing as chairman and ranking member of the Senate Foreign Relations East Asia Subcommittee to foster bipartisan agreement around the island of Taiwan.

MIL OSI USA News –

May 8, 2025

MIL-OSI USA: Cornyn, Fetterman, Lankford, Gallego Introduce SHIELD Against CCP Act

US Senate News:

Source: United States Senator for Texas John Cornyn
WASHINGTON – U.S. Senators John Cornyn (R-TX), John Fetterman (D-PA), James Lankford (R-OK), and Ruben Gallego (D-AZ) introduced the SHIELD Against CCP Act, which would create a dedicated working group at the U.S. Department of Homeland Security (DHS) to address threats posed by the Chinese Communist Party (CCP):
“To effectively counter China, the U.S. must target them from all angles and through all agencies,” said Sen. Cornyn. “This widely supported, commonsense legislation would allow the Department of Homeland Security to arm itself with the tools to protect our sovereignty against the CCP’s malign influence.”
“The CCP controls everything that happens in China and they will cheat, steal, and poison our communities if it helps them get ahead. They supply the chemicals behind the fentanyl claiming Pennsylvanian lives, rig our immigration rules, and rip off ideas from American companies. Enough is enough,” said Sen. Fetterman. “I’m teaming up with Senators Cornyn, Gallego, and Lankford on the SHIELD Against CCP Act to make sure DHS has the muscle to punch back and keep our people safe.”
“The Chinese Communist Party threatens our sovereignty—whether it’s flooding our border with illegal immigrants, launching cyberattacks, or pushing deadly fentanyl into our communities,” said Sen. Lankford. “The SHIELD Against CCP Act provides the Department of Homeland Security with the necessary tools to address these challenges directly, safeguard our borders, and protect the American people.”
“Fentanyl has devastated communities across Arizona for too long, and we need to use every tool available to stop the flow of this deadly drug into our country,” said Sen. Gallego. “This bipartisan bill will help DHS understand how the Chinese Communist Party is exploiting our border and fueling fentanyl trafficking, so we can close those gaps and keep our communities safe.”
Companion legislation, led by Congressmen Dale Strong (AL-05) and Tom Suozzi (NY-03), overwhelmingly passed the House of Representatives 409-4.
Background:
The SHIELD Against CCP Act would establish a working group within the U.S. Department of Homeland Security (DHS) to:
Examine, assess, and report on efforts by DHS to counter terrorist, cybersecurity, border and port security, and transportation security threats posed to the U.S. by the Chinese Communist Party (CCP), including:
Exploitation of the U.S. immigration system through identify theft, visa processes, unlawful border crossings, human smuggling, and human trafficking;
Predatory economic and trade practices, including trafficking of counterfeit and pirated goods, use of forced labor, customs fraud, and IP theft;
Direct or indirect support of Transnational Criminal Organizations (TCOs) trafficking fentanyl, illicit drug precursors, and other controlled substances through the US border, international mail shipments, or express consignment operations;
And support for illicit financial activity by Chinese Money Laundering Organizations.

Review information gathered by federal, state, and local law enforcement relating to threats, and disseminate such information to relevant authorities;
Submit an annual report on its activities to the Homeland Security, Finance, Judiciary, Foreign Relations, and Banking Committees;
And sunset seven years post-establishment.
The bill would also require DHS Science and Technology Directorate to research technologies and techniques to enhance DHS’s security and situational awareness related to countering threats posed to the U.S. by the CCP.
The SHIELD Against CCP Act is endorsed by the Federal Law Enforcement Officers Association (FLEOA), National Border Patrol Council, National Fusion Center Association, Major County Sheriffs of America, National Narcotics Officers’ Associations’ Coalition, and National HIDTA Director’s Association (NHDA).

MIL OSI USA News –

May 8, 2025

MIL-OSI Russia: Beijing to host first World Humanoid Robot Games

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

BEIJING, May 7 (Xinhua) — China’s capital Beijing will host the 2025 World Robot Conference and the first World Humanoid Robot Games in August, it was announced at a press conference on Wednesday.

The Robotics Conference will run from August 8 to 12, and the Games from August 15 to 17. These events will showcase cutting-edge advances in robotics and foster greater global collaboration in the industry.

According to the organizers, in 2025 the program of the World Robotics Conference includes forums, exhibitions and networking events, where about 200 specialized companies will present their latest developments.

Vice Chairman of the Board and Secretary General of the China Electronics Society Chen Ying noted the expansion of international participation. More than 30 international organizations, over 30 world-renowned experts and over 100 international teams are expected to take part in the events. The share of foreign exhibitors will exceed 20 percent.

The core program of the games, the world’s first multi-discipline competition for humanoid robots, will include tests of their athletic and functional skills in such disciplines as track and field, football, dance, carrying objects and sorting medicine. Additional competitions in badminton, table tennis and basketball will emphasize entertainment and interaction with spectators.

According to Jiang Guangzhi, head of the Beijing City Bureau of Economy and Information Technology, the games will demonstrate how close robots’ capabilities are to the human ideal. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI Russia: China issues emergency response and disaster warnings

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

BEIJING, May 7 (Xinhua) — Chinese authorities on Wednesday issued an emergency response and several warnings over impending or possible natural disasters.

China’s National Meteorological Center (NMC) issued a blue alert for heavy rain and severe convective phenomena, while the China Meteorological Administration (CMA) issued a level 3 emergency response for meteorological disasters.

According to the NMC forecast, from 20:00 on May 7 to 20:00 on May 8, thunderstorms, gales and hail are expected in some parts of the Inner Mongolia Autonomous Region, the provinces of Jilin, Liaoning, Hebei, Shanxi, Anhui, Hubei, Guizhou, Hunan and Jiangxi, as well as the centrally subordinate municipalities of Beijing and Chongqing. In addition, winds with a force of over 11 on the Chinese scale (28.5-32.6 meters per second) are forecast in some areas of the provinces of Hunan, Jiangxi, Guizhou and the city of Chongqing.

The Ministry of Water Resources of China jointly with the CMU issued a yellow alert due to the threat of mountain torrents in some areas of Anhui, Jiangxi, Henan, Hubei and Hunan provinces.

In addition, a yellow alert was issued on Wednesday for meteorological risks of geological disasters, with relatively high risks observed in parts of Anhui, Guangdong, Guizhou and Guangxi Zhuang Autonomous Region.

Local authorities are instructed to closely monitor weather conditions in real time, issue early warnings of possible flooding and carry out evacuation measures if necessary, while the population is advised to take precautions when in risky areas.

China has a four-tier weather warning system, with red representing the highest level of danger, followed by orange, yellow and blue. The emergency response system also has four levels, with level 1 being the most serious. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI Russia: Breaking: US Federal Reserve leaves interest rate unchanged at 4.25-4.5 percent

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

Xinhua | 08. 05. 2025

Keywords: us fed, level, percent, left, changes, rate, urgently, president donald trump, slowing economic growth, background of expectations, federal funds, administration policy, increasing inflation, rate range, fed, us

WASHINGTON, May 7 (Xinhua) — The U.S. Federal Reserve on Wednesday left its target range for the federal funds rate unchanged at 4.25 percent to 4.5 percent amid expectations that the Trump administration’s tariff policies will lead to higher inflation and slower economic growth. –0–

Source: Xinhua

Breaking News: US Federal Reserve Leaves Interest Rate Unchanged at 4.25-4.5 Percent Breaking News: US Federal Reserve Leaves Interest Rate Unchanged at 4.25-4.5 Percent

MIL OSI Russia News –

May 8, 2025

MIL-OSI Russia: Georgian Prime Minister I. Kobakhidze Elected Chairman of the Georgian Dream Party

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

Tbilisi, May 7 (Xinhua) — The Georgian Dream party, Georgia’s ruling party, will be led by Prime Minister Irakli Kobakhidze.

The congress of the Georgian Dream, which took place on Wednesday, unanimously elected I. Kobakhidze as the party chairman. I. Kobakhidze took this post for the second time.

The congress also presented the updated composition of the party’s political council.

The position of the chairman of the Georgian Dream party became vacant after its former chairman Irakli Garibashvili decided to leave the party and politics. I. Garibashvili made the corresponding statement on April 25. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI Russia: The Central Bank of Georgia kept the monetary policy rate at 8 percent.

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

Tbilisi, May 7 /Xinhua/ — The Monetary Policy Committee of the National Bank of Georgia (NBG, Central Bank) decided at a meeting on Wednesday to once again keep the monetary policy rate (refinancing rate) unchanged at 8 percent, the Central Bank reported.

The NBG noted that inflation in Georgia remains below the target of 3 percent.

Given the relatively slow normalization of fundamental factors in the economy and continued high economic growth, the baseline scenario has revised the forecast for real GDP growth in 2025 from 5 percent to 6.7 percent. In the long term, growth is expected to stabilize at around 5 percent.

The NBG announced its intention to use all instruments to ensure price stability so that the overall level of price growth in the medium term remains close to 3%.

The Central Bank’s statement indicates that further rate changes will depend on risk analysis and updated macroeconomic forecasts based on it. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI Russia: China and Russia have found the right way for large neighboring countries to coexist – Xi Jinping

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

Moscow, May 7 /Xinhua/ — China and Russia have found the right path for coexistence between large neighboring countries, Chinese President Xi Jinping said in the Russian capital on Wednesday.

Xi Jinping made the statement in a written speech published upon his arrival in Moscow on a state visit and to attend events marking the 80th anniversary of Victory in the Great Patriotic War.

The Chinese leader noted that China and Russia are inseparable good neighbors, true friends who endure adversity together, and reliable partners who contribute to each other’s success. The two sides have formed the spirit of Chinese-Russian strategic interaction in the new era, which is characterized by eternal good-neighborly friendship, comprehensive strategic interaction and cooperation for mutual benefit and common gain, Xi Jinping stated.

According to the Chinese President, independent, mature and strong China-Russia relations not only bring great benefits to the peoples of the two countries, but also make an important contribution to maintaining global strategic stability and building an equal and orderly multipolar world.

This year, the Chinese leader recalled, marks the 80th anniversary of the victory in the World Anti-Fascist War and the 80th anniversary of the founding of the United Nations.

China and Russia, as important major countries in the world and permanent members of the UN Security Council, will uphold the victory in World War II, firmly safeguard the international system with the UN at its core and the international order based on international law, resolutely oppose hegemonism and power politics, adhere to genuine multilateralism, and promote the building of a more just and reasonable global governance system, Xi Jinping said.

The Chinese President also announced that during his state visit to Russia, he will hold in-depth communication with Russian President Vladimir Putin on bilateral relations and practical cooperation, as well as on significant international and regional issues of mutual interest. This, he said, will give a powerful impetus to the development of Chinese-Russian relations of comprehensive partnership and strategic interaction in the new era.

Recalling that a decade later he will again attend the Victory Day celebrations in Russia on May 9, Xi Jinping said that he hopes to honor with deep feeling the memory of the heroes who died in the struggle for victory in the World Anti-Fascist War together with the leaders of many countries and the Russian people, and to act as a powerful voice of the times in defense of international honesty and justice.

After Xi Jinping’s plane entered Russian airspace, it was escorted by Russian Air Force aircraft.

Upon arrival of the PRC Chairman at Moscow’s Vnukovo Airport, he was warmly greeted by Deputy Prime Minister of the Russian Federation Tatyana Golikova and other high-ranking officials. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI Russia: Armenian Prime Minister to Attend Victory Parade in Moscow

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

Source: People’s Republic of China – State Council News

Yerevan, May 7 (Xinhua) — Armenian Prime Minister Nikol Pashinyan will travel to Moscow on May 9 to attend a parade dedicated to the 80th anniversary of the victory in the Great Patriotic War, the head of the Armenian government said in the country’s parliament on Wednesday.

N. Pashinyan confirmed that he accepted the invitation from Russian President Vladimir Putin, received during a telephone conversation on March 14. At the same time, he did not rule out the possibility of holding bilateral meetings with leaders of other countries on the sidelines of the festive events.

During World War II, about 600,000 Armenian soldiers fought in the ranks of the Soviet and Allied armies, almost half of whom were drafted from Armenia. About 200,000 fighters did not return from the battlefield. –0–

MIL OSI Russia News –

May 8, 2025

MIL-OSI: MKS Instruments Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Quarterly revenue of $936 million, at the high end of guidance
Quarterly GAAP net income of $52 million and net income per diluted share of $0.77, each above the midpoint of guidance
Quarterly Adjusted EBITDA of $236 million, at the high end of guidance, and Non-GAAP net earnings per diluted share of $1.71, above the high end of guidance

ANDOVER, Mass., May 07, 2025 (GLOBE NEWSWIRE) — MKS Instruments, Inc. (NASDAQ: MKSI), a global provider of enabling technologies that transform our world, today reported first quarter 2025 financial results.

“We maintained our recent momentum in the first quarter with solid revenue performance that was at the high end of our guidance, led by strong year-over-year growth in both our Semiconductor and Electronics & Packaging end markets,” said John T.C. Lee, President and Chief Executive Officer. “Our team is executing well and capturing opportunities across memory and foundry as well as advanced packaging necessary to support AI applications.”

Mr. Lee added, “We exited the quarter seeing pockets of demand improvement in our Semiconductor and Electronics and Packaging markets. We are taking active steps to mitigate the impacts from new trade policies. This situation remains dynamic, but we are confident in our ability to manage through, supported by our resilient global manufacturing and supply chain, strong customer relationships and broad, deep product portfolio.”

“MKS has a strong track record of financial discipline and execution which was once again reflected in our first quarter results,” said Ram Mayampurath, Executive Vice President, Chief Financial Officer and Treasurer.

Mr. Mayampurath added, “Our GAAP and Non-GAAP gross margins were at the high end of our guidance range and our GAAP and Non-GAAP operating income exceeded our guidance midpoints. Our second quarter guidance reflects an overall stable demand environment and strong business fundamentals while also factoring in our current view of potential impacts from evolving trade policies. We remain focused on managing profitability and cash generation to delever and strengthen our balance sheet.”

Selected GAAP and Non-GAAP Financial Measures (In millions, except per share data)

	Q1 2025			Q4 2024			Q1 2024
Net Revenues
Semiconductor	$	413		$	400		$	351
Electronics & Packaging		253			254			208
Specialty Industrial		270			281			309
Total net revenues	$	936		$	935		$	868
GAAP Financial Measures
Gross margin		47.4	%		47.2	%		47.8	%
Operating margin		11.9	%		14.5	%		12.2	%
Net income	$	52		$	90		$	15
Net income per diluted share	$	0.77		$	1.33		$	0.22
Non-GAAP Financial Measures
Gross margin		47.4	%		47.2	%		47.8	%
Operating margin		20.2	%		21.3	%		20.2	%
Net earnings	$	116		$	146		$	79
Net earnings per diluted share	$	1.71		$	2.15		$	1.18

Additional Financial Information

At March 31, 2025, the Company had $655 million in cash and cash equivalents, $3.2 billion of secured term loan principal outstanding, $1.4 billion of convertible senior notes outstanding and up to $675 million of additional borrowing capacity under a revolving credit facility, subject to certain leverage ratio requirements. During the first quarter of 2025, the Company completed the repricing of its USD term loan B and EUR term loan B and made a voluntary principal prepayment of $100 million on its USD term loan B. Additionally, the Company repurchased approximately 546,000 shares of its common stock for approximately $45 million, and paid a cash dividend of $15 million or $0.22 per diluted share.

Second Quarter 2025 Guidance

Revenue of $925 million, plus or minus $40 million
Gross margin of 46.5%, plus or minus 1.0%
GAAP operating expenses of $316 million, plus or minus $5 million and Non-GAAP operating expenses of $252 million, plus or minus $5 million
GAAP net income of $55 million, plus or minus $21 million and Non-GAAP net earnings of $106 million, plus or minus $19 million
GAAP net income per diluted share of $0.81, plus or minus $0.32 and Non-GAAP net earnings per diluted share of $1.56, plus or minus $0.28
Adjusted EBITDA of $216 million, plus or minus $23 million

The guidance for the second quarter is based on the current business environment, including the impact of U.S. import tariffs and the imposition of retaliatory actions taken by other countries up through but not including the date of this release. The Company will continue to monitor and adapt to changes in the business environment as needed.

Conference Call Details

A conference call with management will be held on Thursday, May 8, 2025 at 8:30 a.m. (Eastern Time). To participate in the call by phone, participants should visit the Investor Relations section of MKS’ website at investor.mks.com and click on Events & Presentations, where you will be able to register online and receive dial-in details. We encourage participants to register and dial in to the conference call at least 15 minutes before the start of the call to ensure a timely connection. A live and archived webcast and related presentation materials will be available on the Investor Relations section of the MKS website.

About MKS Instruments

MKS Instruments enables technologies that transform our world. We deliver foundational technology solutions to leading edge semiconductor manufacturing, electronics and packaging, and specialty industrial applications. We apply our broad science and engineering capabilities to create instruments, subsystems, systems, process control solutions and specialty chemicals technology that improve process performance, optimize productivity and enable unique innovations for many of the world’s leading technology and industrial companies. Our solutions are critical to addressing the challenges of miniaturization and complexity in advanced device manufacturing by enabling increased power, speed, feature enhancement, and optimized connectivity. Our solutions are also critical to addressing ever-increasing performance requirements across a wide array of specialty industrial applications. Additional information can be found at www.mks.com.

Use of Non-GAAP Financial Results

This press release includes financial measures that are not in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported results under U.S. generally accepted accounting principles (“GAAP”), and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the future financial performance, business prospects and growth of MKS Instruments, Inc. (“MKS,” the “Company,” “our,” or “we”). These statements are only predictions based on current assumptions and expectations. Any statements that are not statements of historical fact (including statements containing the words “will,” “projects,” “intends,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “forecasts,” “continues” and similar expressions) should be considered to be forward-looking statements. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the forward-looking statements that we make are the level and terms of our substantial indebtedness and our ability to service such debt; our entry into the chemicals technology business through our acquisition of Atotech Limited (“Atotech”) in August 2022 (the “Atotech Acquisition”), which has exposed us to significant additional liabilities; the risk that we are unable to realize the anticipated benefits of the Atotech Acquisition; risks related to cybersecurity, data privacy and intellectual property; competition from larger, more advanced or more established companies in our markets; the ability to successfully grow our business, including through growth of the Atotech business, and financial risks associated with that acquisition and potential future acquisitions, including goodwill and intangible asset impairments; manufacturing and sourcing risks, including those associated with limited and sole source suppliers and the impact and duration of supply chain disruptions, component shortages, and price increases; changes in global demand; risks associated with doing business internationally, including geopolitical conflicts, such as the conflict in the Middle East, trade compliance, trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries, regulatory restrictions on our products, components or markets, particularly the semiconductor market, and unfavorable currency exchange and tax rate fluctuations, which risks become more significant as we grow our business internationally and in China specifically; conditions affecting the markets in which we operate, including fluctuations in capital spending in the semiconductor, electronics manufacturing and automotive industries, and fluctuations in sales to our major customers; disruptions or delays from third-party service providers upon which our operations may rely; the ability to anticipate and meet customer demand; the challenges, risks and costs involved with integrating or transitioning global operations of the companies we have acquired; risks associated with the attraction and retention of key personnel; potential fluctuations in quarterly results; dependence on new product development; rapid technological and market change; acquisition strategy; volatility of stock price; risks associated with chemical manufacturing and environmental regulation compliance; risks related to defective products; financial and legal risk management; and the other important factors described under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequent Quarterly Reports on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. MKS is under no obligation to, and expressly disclaims any obligation to, update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, even if subsequent events cause our views to change, after the date of this press release. Amounts reported in this press release are preliminary and subject to finalization prior to the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

Company Contact:
Paretosh Misra
Vice President, Investor Relations
Telephone: (978) 284-4705
Email: paretosh.misra@mks.com



MKS Instruments, Inc.
Unaudited Consolidated Statements of Operations
(In millions, except per share data)

	Three Months Ended
	March 31,			December 31,			March 31,
		2025			2024			2024
Net revenues:
Products	$	819		$	824		$	754
Services		117			111			114
Total net revenues		936			935			868
Cost of revenues:
Products		437			443			398
Services		55			51			55
Total cost of revenues (exclusive of amortization shown separately below)		492			494			453
Gross profit		444			441			415
Research and development		70			65			70
Selling, general and administrative		185			176			170
Acquisition and integration costs		—			3			1
Restructuring and other		16			1			3
Fees and expenses related to amendments to the Term Loan Facility		2			—			3
Amortization of intangible assets		60			61			62
Income from operations		111			135			106
Interest income		(3	)		(5	)		(6	)
Interest expense		53			54			87
Loss on extinguishment of debt		3			4			9
Other (income) expense, net		(1	)		3			(3	)
Income before income taxes		59			79			19
Provision (benefit) for income taxes		7			(11	)		4
Net income	$	52		$	90		$	15
Net income per share:
Basic	$	0.77		$	1.34		$	0.22
Diluted	$	0.77		$	1.33		$	0.22
Cash dividends per common share	$	0.22		$	0.22		$	0.22
Weighted average shares outstanding:
Basic		67.4			67.4			67.0
Diluted		67.7			67.7			67.4

MKS Instruments, Inc.
Unaudited Consolidated Balance Sheets
(In millions)


	March 31,			December 31,
		2025			2024
ASSETS
Cash and cash equivalents	$	655		$	714
Trade accounts receivable, net		639			615
Inventories		894			893
Other current assets		238			252
Total current assets		2,426			2,474
Property, plant and equipment, net		774			771
Right-of-use assets		239			238
Goodwill		2,496			2,479
Intangible assets, net		2,238			2,272
Other assets		383			356
Total assets	$	8,556		$	8,590
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-term debt	$	50		$	50
Accounts payable		323			341
Other current liabilities		408			384
Total current liabilities		781			775
Long-term debt, net		4,409			4,488
Non-current deferred taxes		502			504
Non-current accrued compensation		139			141
Non-current lease liabilities		211			211
Other non-current liabilities		160			149
Total liabilities		6,202			6,268
Stockholders’ equity:
Common stock		—			—
Additional paid-in capital		2,067			2,067
Retained earnings		512			503
Accumulated other comprehensive loss		(225	)		(248	)
Total stockholders’ equity		2,354			2,322
Total liabilities and stockholders’ equity	$	8,556		$	8,590

MKS Instruments, Inc.
Unaudited Consolidated Statements of Cash Flows
(In millions)

	Three Months Ended
	March 31,			December 31,			March 31,
		2025			2024			2024
Cash flows from operating activities:
Net income	$	52		$	90		$	15
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		85			87			88
Unrealized loss (gain) on derivatives not designated as hedging instruments		2			11			3
Amortization of debt issuance costs and original issue discounts		6			7			8
Loss on extinguishment of debt		3			4			9
Stock-based compensation		22			11			15
Provision for excess and obsolete inventory		17			15			11
Deferred income taxes		(37	)		(58	)		(36	)
Other		1			2			2
Changes in operating assets and liabilities, net of acquired assets and liabilities		(10	)		7			(48	)
Net cash provided by operating activities		141			176			67
Cash flows from investing activities:
Purchases of property, plant and equipment		(18	)		(51	)		(18	)
Net cash used in investing activities		(18	)		(51	)		(18	)
Cash flows from financing activities:
Repurchase of common stock		(45	)		—			—
Proceeds from borrowings		—			—			761
Payments of borrowings		(113	)		(229	)		(806	)
Payments of deferred financing fees		—			—			(2	)
Dividend payments		(15	)		(15	)		(15	)
Net (payments) proceeds related to employee stock awards		(5	)		3			(9	)
Other financing activities		(2	)		(5	)		(1	)
Net cash used in financing activities		(180	)		(246	)		(72	)
Effect of exchange rate changes on cash and cash equivalents		(2	)		(26	)		(7	)
Decrease in cash and cash equivalents		(59	)		(147	)		(30	)
Cash and cash equivalents at beginning of period		714			861			875
Cash and cash equivalents at end of period	$	655		$	714		$	845

The following supplemental Non-GAAP earnings information is presented to aid in understanding MKS’ operating results:

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net income	$	52		$	90		$	15
Acquisition and integration costs		—			3			1
Restructuring and other		16			1			3
Amortization of intangible assets		60			61			62
Loss on extinguishment of debt		3			4			9
Amortization of debt issuance costs		5			5			6
Fees and expenses related to amendments to the Term Loan Facility		2			—			3
Tax effect of Non-GAAP adjustments		(22	)		(18	)		(20	)
Non-GAAP net earnings	$	116		$	146		$	79
Non-GAAP net earnings per diluted share	$	1.71		$	2.15		$	1.18
Weighted average diluted shares outstanding		67.7			67.7			67.4

Net cash provided by operating activities	$	141		$	176		$	67
Purchases of property, plant and equipment		(18	)		(51	)		(18	)
Free cash flow	$	123		$	125		$	49
GAAP and Non-GAAP gross profit	$	444		$	441		$	415
GAAP and Non-GAAP gross margin		47.4	%		47.2	%		47.8	%
Operating expenses	$	332		$	306		$	309
Acquisition and integration costs		—			3			1
Restructuring and other		16			1			3
Amortization of intangible assets		60			61			62
Fees and expenses related to amendments to the Term Loan Facility		2			—			3
Non-GAAP operating expenses	$	254		$	242		$	240
Income from operations	$	111		$	135		$	106
Operating margin		11.9	%		14.5	%		12.2	%
Acquisition and integration costs		—			3			1
Restructuring and other		16			1			3
Amortization of intangible assets		60			61			62
Fees and expenses related to amendments to the Term Loan Facility		2			—			3
Non-GAAP income from operations	$	189		$	199		$	175
Non-GAAP operating margin		20.2	%		21.3	%		20.2	%
Interest expense, net	$	50		$	49		$	81
Amortization of debt issuance costs		5			5			6
Non-GAAP interest expense, net	$	45		$	45		$	75
Net income	$	52		$	90		$	15
Interest expense, net		50			49			81
Other (income) expense, net		(1	)		3			(3	)
Provision (benefit) for income taxes		7			(11	)		4
Depreciation		25			26			26
Amortization		60			61			62
Stock-based compensation		22			11			15
Acquisition and integration costs		—			3			1
Restructuring and other		16			1			3
Loss on extinguishment of debt		3			4			9
Fees and expenses related to amendments to the Term Loan Facility		2			—			3
Adjusted EBITDA	$	236		$	237		$	217
Adjusted EBITDA margin		25.2	%		25.3	%		25.0	%

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In millions, except per share data)

	Three Months Ended March 31, 2025						Three Months Ended December 31, 2024
	Income Before Income Taxes		Provision for Income Taxes		Effective Tax Rate		Income Before Income Taxes		(Benefit) Provision for Income Taxes			Effective Tax Rate
GAAP	$	59	$	7	12.3	%	$	79	$	(11	)	(14.5	%)
Acquisition and integration costs		—		—				3		—
Restructuring and other		16		—				1		—
Amortization of intangible assets		60		—				61		—
Loss on extinguishment of debt		3		—				4		—
Amortization of debt issuance costs		5		—				5		—
Fees and expenses related to amendments to the Term Loan Facility		2		—				—		—
Tax effect of Non-GAAP adjustments		—		22				—		18
Non-GAAP	$	145	$	29	19.9	%	$	153	$	7		4.0	%


							Three Months Ended March 31, 2024
							Income Before Income Taxes		Provision for Income Taxes			Effective Tax Rate
GAAP							$	19	$	4		23.1	%
Acquisition and integration costs								1		—
Restructuring and other								3		—
Amortization of intangible assets								62		—
Loss on extinguishment of debt								9		—
Amortization of debt issuance costs								6		—
Fees and expenses related to amendments to the Term Loan Facility								3		—
Tax effect of Non-GAAP adjustments								—		20
Non-GAAP							$	103	$	24		23.3	%

MKS Instruments, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures – Q2’25 Guidance
(In millions, except per share data)

	Three Months Ending June 30, 2025
	$ Amount			Per Share
GAAP net income and net income per share	$	55		$	0.81
Restructuring and other		4
Amortization of intangible assets		60
Loss on extinguishment of debt		2
Amortization of debt issuance costs		4
Tax effect of Non-GAAP adjustments		(19	)
Non-GAAP net earnings and net earnings per share	$	106		$	1.56
Weighted average diluted shares		67.6

GAAP operating expenses	$	316
Restructuring and other		(4	)
Amortization of intangible assets		(60	)
Non-GAAP operating expenses	$	252

GAAP net income		55
Interest expense, net		52
Other expense (income), net		1
Provision for income taxes		4
Depreciation		26
Restructuring and other		4
Amortization of intangible assets		60
Stock-based compensation		12
Loss on extinguishment of debt		2
Adjusted EBITDA	$	216


MKS Instruments, Inc. Notes on Our Non-GAAP Financial Information

Non-GAAP financial measures adjust GAAP financial measures for the items listed below. These Non-GAAP financial measures should be viewed in addition to, and not as a substitute for, MKS’ reported GAAP results, and may be different from Non-GAAP financial measures used by other companies. In addition, these Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MKS management believes the presentation of these Non-GAAP financial measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Acquisition and integration costs include incremental expenses incurred to effect the Atotech Acquisition. Such acquisition costs may include advisory, legal, tax, accounting, valuation, and other professional or consulting fees. Such integration costs may include expenses directly related to integration of business and facility operations, information technology systems and infrastructure and other employee-related costs.

Restructuring and other includes incremental expenses incurred in connection with restructuring programs and other strategic initiatives, primarily related to changes in business and/or cost structure. Such costs may include third-party services, one-time termination benefits, facility-related costs, contract termination fees and other items that have no direct correlation to our future business operations.

Amortization of intangible assets includes non-cash amortization expense associated with intangible assets acquired in acquisitions.

Loss on extinguishment of debt includes the non-cash write-off of unamortized debt issuance costs and original issue discount costs incurred from voluntary prepayments and/or repricing of our term loan facility.

Amortization of debt issuance costs includes non-cash additional interest expense related to the amortization of debt issuance costs and original issue discount costs associated with our term loan facility.

Fees and expenses related to amendments to the Term Loan Facility includes direct third-party costs related to repricings or refinancings of our term loan facility.

Tax effect of Non-GAAP adjustments includes the impact of Non-GAAP adjustments that are tax effected at applicable statutory rates resulting in a difference between the GAAP and Non-GAAP tax rates.

The MIL Network –

May 8, 2025

MIL-Evening Report: Vietnam is poised to become a top 20 economy, so why is Australia taking so long to make trade and investment links?

Source: The Conversation (Au and NZ) – By Anne Vo, Senior lecturer in Vietnamese culture and politics, University of Wollongong

Aritra Deb/Shutterstock

At a time of widespread global trade instability, Australia should be expanding and diversifying its economic partnerships. Supply chains remain fragile, and protectionist rhetoric is once again gaining traction in major Western economies.

US President Donald Trump’s America First agenda includes sweeping tariffs on imports, withdrawal from multilateral agreements and pressure to take production in-house.

At the same time, China, Australia’s largest trading partner, has often used trade for geopolitical leverage. In 2020, Beijing imposed tariffs of more than 200% on Australian wine. This wiped 30% off the sector’s export value.

So economic diversification is not only desirable but strategically imperative.

An opportunity

Fifty years on from the fall of Saigon, Vietnam presents a compelling opportunity for economic and strategic diversification. The reunited country is eager to move beyond its wartime image and assert itself as an emerging economic powerhouse.

Vietnam’s capital, Ho Chi Min City. The country has shifted from being a place synonymous with war to becoming one of the world’s top economies.
Nguyen Quang Ngoc Tonkin/Shutterstock

Since the launch of the Doi Moi reforms in 1986, Vietnam has embraced economic liberalisation and market-oriented policies. The Doi Moi reforms opened the economy to foreign trade, allowed private ownership and restructured state-owned enterprises.

From a growth rate of just 1.6% in 1980, Vietnam is now set to become one of the world’s top 20 economies by 2050. In 2023 alone, it attracted A$8.5 billion in foreign direct investment, underscoring strong investor confidence.

The 50th anniversary of reunification on April 30 provided insights into the country’s growth. Celebrations included military parades, 3D virtual reality displays and exhibitions promoting advances in technology.

Slow to act

Yet Australia has been slow to act. Despite geographic proximity and shared interests, Australia’s economic footprint in Vietnam remains surprisingly small. In 2023, Australian foreign direct investment totalled just A$3 million. It ranked 22nd, behind countries including Switzerland and Seychelles.

In trade, the disparity is similarly stark. Vietnam accounts for only 2.33% of Australia’s exports and 1.4% of imports. Two-way trade between the two countries reached $26.3 billion in 2022. At the same time, Vietnam’s trade with the United States, topped A$191.9 billion.

Some Australian firms are already making inroads. BlueScope Steel, Linfox, and SunRice have invested significantly in manufacturing, logistics and agriculture. And RMIT University has been a key player in transnational education since it opened the first of three campuses in Vietnam in 2000.

ANZ and Qantas also have a visible presence. However, small and medium-sized enterprises – which comprise more than 98% of Australian businesses – remain largely absent. Many prefer export partnerships or distributor agreements over direct investment.

Potential obstacles

Australian companies have long favoured English-speaking or high-income markets. These offer greater institutional and cultural familiarity and regulatory certainty.

Vietnam’s relationship-based commercial environment poses challenges, especially for firms lacking embedded networks and local knowledge. Concerns around regulatory transparency, intellectual property protection, contract enforcement and corruption – though improving – continue to weigh on corporate decisions.

Small to medium enterprises, in particular, face extra barriers due to limited institutional support, regulatory understanding, market intelligence and in-country networks.

Help from government

The Australian government has taken some steps to catch up. The Enhanced Economic Engagement Strategy, launched in 2021, aims to double two-way investment and elevate both nations to top ten trading partner status.

It identifies priority sectors such as agriculture, education, clean energy, digital technology and manufacturing. However, the strategy contains no enforceable legal protections, tariff concessions or means of dispute resolution.

Manufacturing is one of the priority areas recognised in Australia’s Enhanced Economic Engagement Strategy for Vietnam.
Hien Phung Tu/Shutterstock

The lack of these matters. Japan, South Korea and the European Union have pursued coordinated economic strategies that include concessional loans, robust legal frameworks and in-market support services. These help their businesses thrive in Vietnam’s complex regulatory environment.

Similarly, the EU has integrated trade promotion with legal certainty under agreements like the EU Vietnam Free Trade Agreement.

More needs to be done

Without comparable tools, Australia’s initiatives risk being more aspirational than actionable.

Last year’s upgrade in bilateral ties to a Comprehensive Strategic Partnership, signals growing political will.

For Australia to realise the potential of its relationship with Vietnam it should back long-term policies. These policies should reduce market entry barriers, incentivise small to medium enterprises and increase joint skills development.

Investors also need legal and institutional support.

Australia has strong potential to expand into emerging sectors. These include renewable energy, digital technology, healthcare, vocational education and training, green and smart infrastructure and agritech.

Vietnam’s push for environmentally sustainable economic growth, digital transformation and workforce training aligns closely with Australian strengths. This creates opportunities for strategic investment and cooperation.

There is the potential for Australia to build a dynamic partnership with Vietnam central to its long-term economic position in the Indo-Pacific.

Anne Vo does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Vietnam is poised to become a top 20 economy, so why is Australia taking so long to make trade and investment links? – https://theconversation.com/vietnam-is-poised-to-become-a-top-20-economy-so-why-is-australia-taking-so-long-to-make-trade-and-investment-links-255722

MIL OSI Analysis – EveningReport.nz –

May 8, 2025

MIL-Evening Report: ‘Utu’ as foreign policy: how a Māori worldview can make sense of a shifting world order

Source: The Conversation (Au and NZ) – By Nicholas Ross Smith, Senior Research Fellow, National Centre for Research on Europe, University of Canterbury

Getty Images

There is a growing feeling in New Zealand that the regional geopolitical situation is becoming less stable and more conflicted. China has ramped up its Pacific engagement, most recently with the Cook Islands, and the United States under Donald Trump is abandoning the old multilateral world order.

As a result, we’re beginning to see New Zealand shift away from a two-decades-long preference for engaging with multiple partners towards a more conventional balancing strategy.

Essentially, this attempts to counter the perceived threat from a strong country – namely China – with a combination of external alliances and internal policies.

Externally, New Zealand has sought re-align itself within the US-led security sphere. Participation in pillar two of the AUKUS security pact has been seriously discussed, and New Zealand has actively engaged with NATO as a member of the “Indo-Pacific Four” (along with Australia, Japan and the Republic of Korea).

Internally, a NZ$12 billion “defence plan” was announced in early April. This will see New Zealand increase defence spending from just over 1% of GDP to more than 2% over the next eight years.

Foreign Minister Winston Peters has made no secret of these changing priorities. He has said he is simply taking “the world as it is”, adding:

this realism is a shift from our predecessors’ vaguer notions of an indigenous foreign policy that no-one else understood, let alone shared.

This was a direct repudiation of the previous Labour government’s foreign minister, Nanaia Mahuta. Her tenure had offered a glimpse of what a foreign policy guided by te ao Māori – the Māori worldview – might look like.

Four tikanga Māori principles underpinned the policy: manaakitanga (hospitality), whanaungatanga (connectedness), mahi tahi and kotahitanga (unity through collaboration), and kaitiakitanga (intergenerational guardianship).

‘The world as it is’: Foreign Minister Winston Peters speaks at Rātana celebrations in Whanganui, January 24 2025.
Getty Images

Beyond Western-centric thinking

Clearly, te ao Māori offers a very different way of looking at international relations. At its core it adopts a “relational” understanding of the world that views reality as a series of entanglements: “human with human, human with nonhuman, nonhuman with human, human and nonhuman with transcendent”.

It is also a non-anthropocentric view: humans are not the masters of the world but rather stewards or custodians of a complex web of relations.

But as we argue in a recent Global Policy article, despite good intentions, Mahuta’s four tikanga Māori were mostly used rhetorically. They did not fundamentally alter New Zealand’s foreign policy, which remained firmly Western-centric.

We suggest those four tikanga principles would be enhanced by adding the concept of “utu” as a kind of overarching framework.

Largely thanks to the famous 1983 film of the same name, utu is often thought to simply mean violent revenge. In fact, it is a much deeper concept that refers to the “process of restoring physical and spiritual relationships to an equal or harmonious state”.

Utu as a foreign policy framework

A foreign policy underpinned by utu, therefore, would seek to build relationships that are harmonious and reciprocal.

Harmony, in this sense, goes beyond notions of an international order characterised by global peace, greater connectedness, increased cooperation and interdependence.

While these are important, an utu-informed view of harmony would also take into account the relationship between humans and the natural world, and between present, past and future generations.

Similarly, in the Western-centric view, reciprocity is typically “invoked as an appropriate standard of behaviour which can produce cooperation among sovereign states”.

But utu involves a reciprocity built through hospitality (manaakitanga), something which has to be given even if serious discord exists in a relationship. Reciprocity is also important in interactions between humans and the natural world.

Consequently, an utu foreign policy doctrine would offer a radically different lens than New Zealand is currently using.

A genuinely independent foreign policy

Firstly, it would require New Zealand to reject the Western geopolitical construct
of the “Indo-Pacific”, which vastly oversimplifies the complex realities of the region.

And it would mean viewing China not as an existential threat, but rather as a crucial relationship that is subject to the principles of manaakitanga, despite growing discord and diplomatic challenges.

Secondly, it would see New Zealand recognise climate change as the primary existential threat to the status quo. This would align closely with the country’s Pacific neighbours whose Blue Pacific initiative offers an alternative to the Indo-Pacific focus.

Lastly, it would help New Zealand more consistently and coherently pursue a genuinely independent foreign policy. This should have bipartisan appeal, as it would give New Zealand a unique perspective on the world.

Ultimately, as New Zealand faces a more complex regional environment and a range of national security challenges, utu in its true sense offers a more constructive framework.

Perhaps adopting a more complex – and more humble – understanding of the world, as provided by te ao Māori, would give policymakers an alternative pathway to simply taking “the world as it is”.

The author acknowledges the contribution of independent researcher Bonnie Holster, co-author of the Global Policy paper on which this article is based.

Nicholas Ross Smith does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. ‘Utu’ as foreign policy: how a Māori worldview can make sense of a shifting world order – https://theconversation.com/utu-as-foreign-policy-how-a-maori-worldview-can-make-sense-of-a-shifting-world-order-255602

MIL OSI Analysis – EveningReport.nz –

May 8, 2025

MIL-OSI: ESCO Reports Second Quarter Fiscal 2025 Results

Source: GlobeNewswire (MIL-OSI)

St. Louis, May 07, 2025 (GLOBE NEWSWIRE) — ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the second quarter ended March 31, 2025 (Q2 2025).

Operating Highlights

Q2 2025 Sales increased $16.4 million (7 percent) to $265.5 million compared to $249.1 million in Q2 2024.
Q2 2025 Entered Orders were $290.8 million for a book-to-bill ratio of 1.10x, resulting in record backlog of $932 million.
Q2 2025 GAAP EPS increased 33 percent to $1.20 per share compared to $0.90 per share in Q2 2024.
Q2 2025 Adjusted EPS increased 24 percent to $1.35 per share compared to $1.09 per share in Q2 2024.
Net cash provided by operating activities was $58 million YTD, an increase of $39 million compared to the prior year period.

Bryan Sayler, Chief Executive Officer and President, commented, “Q2 was another strong quarter as we delivered 7 percent top line growth, 250 basis points of Adjusted EBITDA margin expansion, and a 24 percent increase in Adjusted EPS compared to the prior year. All three segments delivered solid revenue growth, highlighted by strength across our Navy, commercial aerospace, utility, and Test end-markets. It was very positive to see orders increase 22 percent over the prior year, with particular strength in both USG and Test.

“As previously announced, we closed the SM&P acquisition on April 25^th. Going forward, SM&P will be known as ESCO Maritime Solutions (Maritime). We are happy to welcome the Maritime employees to the ESCO team. Maritime’s signature and power management solutions meaningfully expand our naval product offerings in both the US and UK. We are optimistic about the future of ESCO and are pleased to have Maritime join us as an integral part of that journey.”

Segment Performance

Aerospace & Defense (A&D)

Sales increased $8.7 million (8 percent) to $123.4 million in Q2 2025 from $114.7 million in Q2 2024. The Q2 increase was driven by strength in Navy and aerospace sales.
EBIT increased $6.9 million in Q2 2025 to $30.3 million from $23.4 million in Q2 2024. Adjusted EBIT increased $6.7 million in Q2 2025 to $30.3 million (24.6 percent margin) from $23.6 million (20.6 percent margin) in Q2 2024. Margin improvement was driven by price increases and mix, partially offset by inflationary pressures.
Entered Orders increased $6 million (5 percent) to $122 million in Q2 2025 compared to $116 million in Q2 2024. Q2 2025 included a $6M order for PTI’s cartridge actuated devices/propellant actuated devices (CAD/PAD) products. The segment book-to-bill was 0.99x in the quarter, resulting in ending backlog of $605 million.

Utility Solutions Group (USG)

Sales increased $3.5 million (4 percent) to $90.8 million in Q2 2025 from $87.3 million in Q2 2024. Doble’s sales increased by $3.5 million (5 percent) driven by a strong quarter for offline and protection testing products and services, partially offset by lower cybersecurity/compliance (DUCe) solutions. NRG sales were flat to the prior year due to moderation in renewable energy projects.
EBIT increased $3.2 million in Q2 2025 to $20.8 million from $17.6 million in Q2 2024. Adjusted EBIT increased $3.3 million in Q2 2025 to $20.9 million (23.0 percent margin) from $17.6 million (20.1 percent margin) in Q2 2024. Margin was favorably impacted by leverage on higher volume, price increases and mix, partially offset by inflationary pressures.
Entered Orders increased $13 million (17 percent) to $92 million in Q2 2025. Doble orders increased by $11 million (17 percent) on strong offline test equipment and services orders. NRG orders increased by $2 million (15 percent) driven by solar orders in North America and EMEA. The segment book-to-bill was 1.02x in the quarter, resulting in ending backlog of $124 million.

RF Test & Measurement (Test)

Sales increased $4.3 million (9 percent) to $51.4 million in Q2 2025 from $47.1 million in Q2 2024. Sales growth was primarily driven by higher Test and Measurement, industrial shielding, and medical services in the US, along with a strong quarter for MPE filters projects.
EBIT increased $0.9 million in Q2 2025 to $6.4 million from $5.5 million in Q2 2024. Adjusted EBIT increased $0.7 million in Q2 2025 to $6.4 million (12.4 percent margin) from $5.7 million (12.2 percent margin) in Q2 2024. Margin was favorably impacted by leverage on higher volume, price increases, and cost reduction efforts, partially offset by unfavorable mix and inflationary pressures.
Entered Orders increased $33 million (75 percent) to $77 million in Q2 2025. The increase was primarily driven by a strong quarter for US Test & Measurement, filters, and medical and industrial shielding orders. In addition, orders in China increased $9M in the quarter, primarily related to Test & Measurement projects. The segment book-to-bill was 1.50x in the quarter, resulting in ending backlog of $203 million.

Business Outlook – 2025

Guidance for Q3 2025 and FY 2025 is being shown both with and without the impact of Maritime to provide insight into our expectations for Maritime’s impact on the remainder of Q3 2025 (approximately 2 months) and FY 2025 (approximately 5 months). The transaction costs and purchase accounting amortization associated with the Maritime acquisition have not yet been finalized and are not included in our current business outlook.

Consistent with our initial FY 2025 guidance, organic sales are expected to grow 6 to 8 percent in FY 2025. Maritime is expected to contribute sales in the range of $90 to $100 million in FY 2025.

	Guidance Range ($ Millions)
Sales Guidance excluding Maritime	$	1,090	$	1,110
Maritime Impact	$	90	$	100
Sales Guidance including Maritime	$	1,180	$	1,210

In our Q1 2025 earnings release (dated 2/6/2025), FY 2025 Adjusted EPS guidance was increased to $5.55-$5.75. Due to continued market strength and improvement in operational performance, we are raising our full-year guidance by another $0.10 to $5.65 to $5.85 (18 to 23 percent growth over the prior year). Maritime is expected to contribute Adjusted EPS in the range of $0.20 – $0.30 in FY 2025.

	Guidance Range
Previous FY 2025 Adjusted EPS Guidance	$	5.55	$	5.75
Guidance Increase	$	0.10	$	0.10
Updated FY’25 Adjusted EPS Guidance excluding Maritime	$	5.65	$	5.85
Maritime Impact	$	0.20	$	0.30
Updated FY’25 Adjusted EPS Guidance including Maritime	$	5.85	$	6.15

Management’s expectation is for Q3 Adjusted EPS without Maritime to be in the range of $1.50 to $1.60 (15 to 22 percent growth over the prior year quarter). Maritime is expected to add Adjusted EPS in the range of $0.08 to $0.12 in Q3 2025.

	Guidance Range
Q3 2025 Adjusted EPS Guidance excluding Maritime	$	1.50	$	1.60
Maritime Impact	$	0.08	$	0.12
Q3 2025 Adjusted EPS Guidance including Maritime	$	1.58	$	1.72

Dividend Payment
The next quarterly cash dividend of $0.08 per share will be paid on July 17, 2025 to stockholders of record on July 2, 2025.

Conference Call
The Company will host a conference call today, May 7, at 4:00 p.m. Central Time, to discuss the Company’s Q2 2025 results. A live audio webcast and an accompanying slide presentation will be available in the Investor Center of ESCO’s website. Participants may also access the webcast using this registration link. For those unable to participate, a webcast replay will be available after the call in the Investor Center of ESCO’s website.

Forward-Looking Statements
Statements in this press release regarding Management’s intentions, expectations and guidance for fiscal 2025, including restructuring and cost reduction actions, sales, orders, revenues, margin, earnings, Adjusted EPS, acquisition related amortization, and any other statements which are not strictly historical, are “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. securities laws.

Investors are cautioned that such statements are only predictions and speak only as of the date of this presentation, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 and the following: the timing and outcome, if any, of the Company’s strategic alternatives review of the VACCO business; the impacts of climate change and related regulation of greenhouse gases; the impacts of labor disputes, civil disorder, wars, elections, political changes, tariffs and trade disputes, terrorist activities, cyberattacks or natural disasters on the Company’s operations and those of the Company’s customers and suppliers; disruptions in manufacturing or delivery arrangements due to shortages or unavailability of materials or components or supply chain disruptions; inability to access work sites; the timing and content of future contract awards or customer orders; the timely appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties or data breaches; the availability of acquisitions; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; material changes in the costs and availability of certain raw materials; material changes in the cost of credit; changes in laws and regulations including but not limited to changes in accounting standards and taxation; changes in interest, inflation and employment rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration and performance of acquired businesses.

Non-GAAP Financial Measures
The financial measures EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are presented in this press release. The Company defines “EBIT” as earnings before interest and taxes, “EBITDA” as earnings before interest, taxes, depreciation and amortization, “Adjusted EBIT” and “Adjusted EBITDA” as excluding the net impact of the items described in the attached Reconciliation of Non-GAAP Financial Measures, and “Adjusted EPS” as GAAP earnings per share excluding the net impact of the items described and reconciled in the attached Reconciliation of Non-GAAP Financial Measures.

EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes EBIT, Adjusted EBIT, EBITDA, and Adjusted EBITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation, and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

About ESCO
ESCO Technologies is a global provider of highly engineered products and solutions serving diverse end-markets. It manufactures filtration and fluid control products, advanced composites, as well as signature and power management solutions for aviation, Navy, space, and industrial customers. ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems; and provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Headquartered in St. Louis, Missouri, ESCO and its subsidiaries have offices and manufacturing facilities worldwide. For more information on ESCO and its subsidiaries, visit ESCO’s website at www.escotechnologies.com.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)

						Three Months Ended March 31, 2025			Three Months Ended March 31, 2024

Net Sales					$	265,519			249,129
Cost and Expenses:
		Cost of sales				156,298			152,347
		Selling, general and administrative expenses				58,163			55,097
		Amortization of intangible assets				7,989			8,572
		Interest expense				2,195			3,226
		Other expenses (income), net				375			666
			Total costs and expenses			225,020			219,908

Earnings before income taxes						40,499			29,221
Income tax expense						9,466			6,002

			Net earnings		$	31,033			23,219

				Earnings Per Share (EPS)

				Diluted – GAAP	$	1.20			0.90

				Diluted – As Adjusted Basis	$	1.35	(1	)	1.09	(2	)

				Diluted average common shares O/S:		25,877			25,847

(1	)	Q2 2025 Adjusted EPS excludes $0.15 per share of after-tax charges consisting primarily of acquisition related amortization.

(2	)	Q2 2024 Adjusted EPS excludes $0.19 per share of after-tax charges consisting of: $0.02 of MPE acquisition backlog charges, $0.02 of restructuring charges (primarily severance) within the Test and A&D segments, and $0.15 of acquisition related amortization.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)

						Six Months Ended March 31, 2025				Six Months Ended March 31, 2024

Net Sales					$	512,545				467,443
Cost and Expenses:
		Cost of sales				304,940				286,498
		Selling, general and administrative expenses				116,947				109,065
		Amortization of intangible assets				15,982				16,440
		Interest expense				4,452				5,893
		Other expenses (income), net				(216	)			872
			Total costs and expenses			442,105				418,768

Earnings before income taxes						70,440				48,675
Income tax expense						15,934				10,287

			Net earnings		$	54,506				38,388

				Earnings Per Share (EPS)

				Diluted – GAAP	$	2.11				1.49

				Diluted – As Adjusted Basis	$	2.42		(1	)	1.85	(2	)

				Diluted average common shares O/S:		25,854				25,846

(1	)	YTD Q2 2025 Adjusted EPS excludes $0.31 per share of after-tax charges consisting primarily of $0.01 of restructuring charges within the Test segment and $0.30 of acquisition related amortization.

(2	)	YTD Q2 2024 Adjusted EPS excludes $0.36 per share of after-tax charges consisting of: $0.05 of MPE acquisition backlog and inventory step-up charges and acquisition costs, $0.02 of restructuring charges (primarily severance) within the Test and A&D segments, and $0.29 of acquisition related amortization.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited)
(Dollars in thousands)

				GAAP				As Adjusted
				Q2 2025		Q2 2024		Q2 2025		Q2 2024
Net Sales
	Aerospace & Defense		$	123,369		114,701		123,369		114,701
	USG			90,767		87,309		90,767		87,309
	Test			51,383		47,119		51,383		47,119
		Totals	$	265,519		249,129		265,519		249,129

EBIT
	Aerospace & Defense		$	30,296		23,377		30,298		23,640
	USG			20,779		17,575		20,862		17,575
	Test			6,369		5,542		6,369		5,745
	Corporate			(14,750	)	(14,047	)	(9,648	)	(8,260	)
		Consolidated EBIT		42,694		32,447		47,881		38,700
		Less: Interest expense		(2,195	)	(3,226	)	(2,195	)	(3,226	)
		Less: Income tax expense		(9,466	)	(6,002	)	(10,659	)	(7,440	)
		Net earnings	$	31,033		23,219		35,027		28,034

Note 1: Adjusted net earnings of $35.0 million in Q2 2025 exclude $4.0 million (or $0.15 per share) of after-tax charges consisting primarily of acquisition related amortization.

Note 2: Adjusted net earnings of $28.0 million in Q2 2024 exclude $4.8 million (or $0.19 per share) of after-tax charges consisting of: $0.02 of MPE acquisition backlog charges, $0.02 of restructuring charges (primarily severance) within the Test and A&D segments, and $0.15 of acquisition related amortization.

EBITDA Reconciliation to Net earnings:								Q2 2025 –		Q2 2024 –
				Q2 2025		Q2 2024		As Adjusted		As Adjusted
Consolidated EBITDA			$	56,668		46,550		56,895		47,174
Less: Depr & Amort				(13,974	)	(14,103	)	(9,014	)	(8,474	)
Consolidated EBIT				42,694		32,447		47,881		38,700
Less: Interest expense				(2,195	)	(3,226	)	(2,195	)	(3,226	)
Less: Income tax expense				(9,466	)	(6,002	)	(10,659	)	(7,440	)
Net earnings			$	31,033		23,219		35,027		28,034

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited)
(Dollars in thousands)

				GAAP				As Adjusted
				YTD Q2 2025		YTD Q2 2024		YTD Q2 2025		YTD Q2 2024
Net Sales
	Aerospace & Defense		$	237,670		209,434		237,670		209,434
	USG			177,427		170,293		177,427		170,293
	Test			97,448		87,716		97,448		87,716
		Totals	$	512,545		467,443		512,545		467,443

EBIT
	Aerospace & Defense		$	51,892		40,040		51,920		40,303
	USG			41,269		35,200		41,352		35,320
	Test			10,791		7,321		11,256		7,797
	Corporate			(29,060	)	(27,993	)	(18,959	)	(16,860	)
		Consolidated EBIT		74,892		54,568		85,569		66,560
		Less: Interest expense		(4,452	)	(5,893	)	(4,452	)	(5,893	)
		Less: Income tax		(15,934	)	(10,287	)	(18,390	)	(13,045	)
		Net earnings	$	54,506		38,388		62,727		47,622

Note 1: Adjusted net earnings of $62.7 million in YTD 2025 exclude $8.2 million (or $0.31 per share) of after-tax charges consisting of: $0.01 of restructuring charges within the Test segment and acquisition related costs at Corporate, and $0.30 of acquisition related amortization.

Note 2: Adjusted net earnings of $47.6 million in YTD 2024 exclude $9.2 million (or $0.36 per share) of after-tax charges consisting of: $0.05 of MPE acquisition backlog and inventory step-up charges and acquisition costs, $0.02 of restructuring costs (primarily severance) within the Test and A&D segments, and $0.29 of acquisition related amortization.

EBITDA Reconciliation to Net earnings:								YTD		YTD
				YTD		YTD		Q2 2025 –		Q2 2024 –
				Q2 2025		Q2 2024		As Adjusted		As Adjusted
Consolidated EBITDA			$	102,673		82,123		103,393		83,582
Less: Depr & Amort				(27,781	)	(27,555	)	(17,824	)	(17,022	)
Consolidated EBIT				74,892		54,568		85,569		66,560
Less: Interest expense				(4,452	)	(5,893	)	(4,452	)	(5,893	)
Less: Income tax expense				(15,934	)	(10,287	)	(18,390	)	(13,045	)
Net earnings			$	54,506		38,388		62,727		47,622

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

				March 31, 2025	September 30, 2024

Assets
	Cash and cash equivalents		$	57,397	65,963
	Accounts receivable, net			218,123	240,680
	Contract assets			125,281	130,534
	Inventories			231,200	209,164
	Other current assets			28,752	22,308
		Total current assets		660,753	668,649
	Property, plant and equipment, net			172,081	170,596
	Intangible assets, net			394,594	407,602
	Goodwill			536,222	539,899
	Operating lease assets			38,322	37,744
	Other assets			13,690	14,130
			$	1,815,662	1,838,620

Liabilities and Shareholders’ Equity
	Current maturities of long-term debt		$	20,000	20,000
	Accounts payable			81,244	98,371
	Contract liabilities			128,114	124,845
	Other current liabilities			92,661	106,638
		Total current liabilities		322,019	349,854
	Deferred tax liabilities			72,580	75,333
	Non-current operating lease liabilities			35,948	34,810
	Other liabilities			39,787	39,273
	Long-term debt			68,000	102,000
	Shareholders’ equity			1,277,328	1,237,350
			$	1,815,662	1,838,620

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)

		Six Months Ended March 31, 2025		Six Months Ended March 31, 2024
Cash flows from operating activities:
Net earnings	$	54,506		38,388
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization		27,781		27,555
Stock compensation expense		5,323		4,144
Changes in assets and liabilities		(27,207	)	(47,869	)
Effect of deferred taxes		(2,128	)	(2,981	)
Net cash provided by operating activities		58,275		19,237

Cash flows from investing activities:
Acquisition of business, net of cash acquired				(56,179	)
Capital expenditures		(15,350	)	(16,301	)
Additions to capitalized software		(5,465	)	(5,912	)
Net cash used by investing activities		(20,815	)	(78,392	)

Cash flows from financing activities:
Proceeds from long-term debt		66,000		154,000
Principal payments on long-term debt and short-term borrowings		(100,000	)	(65,000	)
Dividends paid		(4,130	)	(4,125	)
Purchases of common stock into treasury				(7,189	)
Other		(6,146	)	(1,432	)
Net cash (used) provided by financing activities		(44,276	)	76,254

Effect of exchange rate changes on cash and cash equivalents		(1,750	)	471

Net (decrease) increase in cash and cash equivalents		(8,566	)	17,570
Cash and cash equivalents, beginning of period		65,963		41,866
Cash and cash equivalents, end of period	$	57,397		59,436

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Other Selected Financial Data (Unaudited)
(Dollars in thousands)

Backlog And Entered Orders – Q2 2025			A&D		USG		Test		Total
	Beginning Backlog – 1/1/25	$	606,687		122,857		177,404		906,948
	Entered Orders		121,706		92,184		76,950		290,840
	Sales		(123,369	)	(90,767	)	(51,383	)	(265,519	)
	Ending Backlog – 3/31/25	$	605,024		124,274		202,971		932,269

Backlog And Entered Orders – YTD Q2 2025			A&D		USG		Test		Total
	Beginning Backlog – 10/1/24	$	600,382		119,943		158,644		878,969
	Entered Orders		242,312		181,758		141,775		565,845
	Sales		(237,670	)	(177,427	)	(97,448	)	(512,545	)
	Ending Backlog – 3/31/25	$	605,024		124,274		202,971		932,269

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (Unaudited)

EPS – Adjusted Basis Reconciliation – Q2 2025
	EPS – GAAP Basis – Q2 2025	$	1.20
	Adjustments (defined below)		0.15
	EPS – As Adjusted Basis – Q2 2025	$	1.35

	Adjustments exclude $0.15 per share consisting primarily of acquisition
	related amortization.
	The $0.15 of EPS adjustments per share consists of $5.2 million of pre-tax
	charges offset by $1.2 million of tax benefit for net impact of $4 million.

EPS – Adjusted Basis Reconciliation – Q2 2024
	EPS – GAAP Basis – Q2 2024	$	0.90
	Adjustments (defined below)		0.19
	EPS – As Adjusted Basis – Q2 2024	$	1.09

	Adjustments exclude $0.19 per share consisting primarily of $0.02 of MPE
	acquisition backlog charges, $0.02 of restructuring charges within the Test
	and A&D segments, and $0.15 of acquisition related amortization.
	The $0.19 of EPS adjustments per share consists of $6.2 million of pre-tax charges
	offset by $1.4 million of tax benefit for net impact of $4.8 million.

EPS – Adjusted Basis Reconciliation – YTD Q2 2025
	EPS – GAAP Basis – YTD Q2 2025	$	2.11
	Adjustments (defined below)		0.31
	EPS – As Adjusted Basis – YTD Q2 2025	$	2.42

	Adjustments exclude $0.31 per share consisting primarily of $0.01 of restructuring
	charges within the Test segment and $0.30 of acquisition related amortization.
	The $0.31 of EPS adjustments per share consists of $10.7 million of pre-tax charges
	offset by $2.5 million of tax benefit for net impact of $8.2 million.

EPS – Adjusted Basis Reconciliation – YTD Q2 2024
	EPS – GAAP Basis – YTD Q2 2024	$	1.49
	Adjustments (defined below)		0.36
	EPS – As Adjusted Basis – YTD Q2 2024	$	1.85

	Adjustments exclude $0.36 per share consisting primarily of $0.05 of MPE acquisition
	backlog charges, inventory step-up charges and acquisition costs, $0.02 of
	restructuring charges, and $0.29 of acquisition related amortization.
	The $0.36 of EPS adjustments per share consists of $12 million of pre-tax charges
	offset by $2.8 million of tax benefit for net impact of $9.2 million.

SOURCE ESCO Technologies Inc.
Kate Lowrey, Vice President of Investor Relations, (314) 213-7277

The MIL Network –

May 8, 2025

MIL-OSI: Ormat Technologies Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

REVENUE GROWTH AND RECORD QUARTERLY ADJUSTED EBITDA SUPPORT ONGOING STRATEGIC PORTFOLIO EXPANSION

HIGHLIGHTS

TOTAL REVENUES AND NET INCOME¹ IMPROVED 2.5% AND 4.6%, RESPECTIVELY
RECORD ADJUSTED EBITDA OF $150.3 MILLION, AN INCREASE OF 6.4% VS LAST YEAR
ENERGY STORAGE SEGMENT REVENUES INCREASED BY 120% DRIVING MEANINGFUL MARGIN INCREASE
SIGNED AN AGREEMENT TO ACQUIRE THE 20MW BLUE MOUNTAIN GEOTHERMAL POWER PLANT FROM CYRQ ENERGY
COMPANY REITERATES ITS 2025 FULL-YEAR GUIDANCE, REFLECTING STRONG EXECUTION AND CONFIDENCE IN THE BUSINESS OUTLOOK

RENO, Nev., May 07, 2025 (GLOBE NEWSWIRE) — Ormat Technologies, Inc. (NYSE: ORA) (the “Company” or “Ormat”), a leading renewable energy company, today announced financial results for the first quarter ended March 31, 2025.

KEY FINANCIAL RESULTS

	Q1 2025		Q1 2024		Change (%)
GAAP Measures
Revenues ($ millions)
Electricity	180.2		191.3		(5.8	%)
Product	31.8		24.8		27.9	%
Energy Storage	17.8		8.1		119.7	%
Total Revenues	229.8		224.2		2.5	%

Gross Profit	72.9		78.8		(7.5	%)
Gross margin (%)
Electricity	33.5	%	39.0	%
Product	22.3	%	14.8	%
Energy Storage	30.6	%	7.5	%
Gross margin (%)	31.7	%	35.2	%
Operating income ($ millions)	50.9		52.6		(3.2	%)
Net income attributable to the Company’s stockholders	40.4		38.6		4.6	%
Diluted EPS ($)	0.66		0.64		3.1	%
Non-GAAP Measures
Adjusted Net income attributable to the Company’s stockholders	41.5		39.6		4.8	%
Adjusted Diluted EPS ($)	0.68		0.65		4.6	%
Adjusted EBITDA²($ millions)	150.3		141.2		6.4	%

_{¹ Net Income attributable to the Company’s stockholder}
_{² See reconciliation table below}

“Ormat had a strong start to 2025, achieving a 2.5% increase in revenue, a 4.6% rise in net income attributable to the Company’s stockholders, and a 6.4% increase in adjusted EBITDA. This growth was driven by improved performance in both our Product and Storage segments,” said Doron Blachar, Chief Executive Officer of Ormat Technologies. “Our Storage segment benefited from new capacity added over the last 12 months and from higher merchant prices in the PJM market. We expect continued good performance throughout 2025 as we transition our Storage segment to a more predictable portfolio designed to maximize profitability.”

“While our Electricity segment experienced a slight year-over-year decline in the quarter due to previously disclosed curtailments in California and Nevada, the balance of our geothermal operations delivered a consistent, solid performance. We have several projects under development that we anticipate will reach commercial operation by the end of 2025, which we expect will deliver solid generation growth and further strengthen our earnings trajectory. Additionally, we believe that the potential easing of project permitting timelines combined with increased focus on geothermal exploration will further support our growth in the segment, expand our revenues, and help us achieve our long-term targets.”

“I am pleased to announce that Ormat signed an agreement to acquire the Blue Mountain geothermal power plant from Cyrq Energy for $88 million, subject to standard working capital adjustments. The 20 MW facility, located in Humboldt County, was built using Ormat technology, features an existing 51 MW interconnection capacity and a Power Purchase Agreement (PPA) with NV Energy (NVE) that expires at the end of 2029. Following the acquisition, Ormat plans to upgrade the power plant, increasing its capacity by 3.5 MW. Additionally, subject to permit and PPA approval, Ormat intends to add a 13 MW solar facility to support the plant’s auxiliaries. The acquisition is anticipated to close towards the end of the second quarter. This acquisition underscores Ormat’s capability to strategically expand and enhance assets in the U.S., leveraging our advanced technology and expertise to optimize performance and efficiency. The planned upgrades and solar addition demonstrate our commitment to innovation and maximizing renewable energy output, contributing to a sustainable future.”

Blachar continued, “The demand for electricity, particularly from baseload renewable sources, remains strong, and we continue to observe high PPA pricing in the Electricity Segment, and increased Resource Adequacy (RA) pricing in the Storage Segment. Regarding the recent reciprocal tariffs, we anticipate a limited short-term impact on our Storage Segment as we have already procured batteries for all projects currently under construction. Additionally, our Electricity Segment operations and project development have limited exposure to China, mitigating potential adverse effects from the tariffs. Ormat remains committed to delivering reliable and sustainable energy solutions and enhancing shareholder value. We will continue navigating this fluid regulatory environment with a focus on maintaining our growth trajectory and supporting the transition to a cleaner energy future.”

FINANCIAL HIGHLIGHTS

Net income attributable to the Company’s stockholders for the first quarter was $40.4 million, an increase of 4.6% compared to last year. Diluted EPS for the first quarter was $0.66, an increase of 3.1%, compared to the prior year period. This increase is mainly driven by income tax benefits related to the storage facilities expected to commence commercial operation during 2025.
Adjusted net income attributable to the Company’s stockholders and Adjusted diluted EPS for the first quarter increased 4.8% and 4.6%, respectively.
Adjusted EBITDA for the first quarter was $150.3 million, an increase of 6.4% compared to 2024. The year-over-year increase in Adjusted EBITDA was driven by the Energy Storage segment, due to the contribution of new assets, higher merchant pricing in the East Coast markets, and a legal settlement with a battery supplier. In the Product segment, the increase was derived from a higher backlog and improved contract’ margins. The increase in the Storage and Product segments was partly offset by the reduction in Electricity segment EBITDA mainly due to curtailments in the U.S.
Electricity segment revenues decreased by 5.8% during the first quarter, compared to last year. The year-over-year decrease in the first quarter revenue was driven by the previously disclosed energy curtailments, mainly at our McGinness complex, maintenance on the transmission line by the local grid operator, and wildfires in California, which forced grid operators to curtail part of the supplied power.
Product segment revenues increased by 27.9% in the first quarter, driven largely by the timing of revenue recognition and our higher backlog. Gross margin increased from 14.8% in the first quarter 2024 to 22.3% in 2025, reflecting marked growth in revenue.
Product segment backlog stands at approximately $314 million as of May 7th, 2025, and includes the recently signed Engineering, Procurement, and Construction (EPC) contract for the development of the Te Mihi Stage 2 geothermal plant in New Zealand and the BOT project in Dominica.
Energy Storage segment revenues increased 119.7% for the first quarter compared to 2024. The improvement was driven by strong performance in the PJM merchant market, where a spike in cold weather along the East Coast contributed to elevated merchant pricing.

BUSINESS HIGHLIGHTS:

In early May, the company signed an agreement to acquire the 20MW Blue Mountain geothermal power plant from Cyrq Energy for $88 million. Closing is expected by the end of the second quarter.
In February 2025, Ormat won a tender issued by the Israeli Electricity Authority and was awarded two 15-year tolling agreements for two energy storage facilities with a combined capacity of approximately 300MW/1200MWh. Ormat will retain a 50% equity interest.
Ormat commenced commercial operations of the 35MW Ijen geothermal power plant in Indonesia in February 2025, holding a 49% equity interest.
In January 2025, Ormat signed a 10-year Power Purchase Agreement (PPA) with Calpine Energy Solutions for up to 15MW of carbon-free geothermal capacity at favorable terms. This PPA will replace the current lower-priced PPA with Southern California Edison for Mammoth 2 in the first quarter of 2027.
We currently do not expect material impact from the new import tariffs on our 2025 and 2026 financial results. All batteries required for our projects arrived or were in transit to the U.S. before significant increased tariffs were imposed.

2025 GUIDANCE

Total revenues of between $935 million and $975 million.
Electricity segment revenues of between $710 million and $725 million.
Product segment revenues of between $172 million and $187 million.
Energy Storage revenues of between $53 million and $63 million.
Adjusted EBITDA to be between $563 million and $593 million.
- Adjusted EBITDA attributable to minority interest of approximately $21 million.

The Company provides a reconciliation of Adjusted EBITDA, a non-GAAP financial measure for the three months ended March 31, 2025. However, the Company does not provide guidance on net income and is unable to provide a reconciliation for its Adjusted EBITDA guidance range to net income without unreasonable efforts due to high variability and complexity with respect to estimating certain forward-looking amounts. These include impairments and disposition and acquisition of business interests, income tax expense, and other non-cash expenses and adjusting items that are excluded from the calculation of Adjusted EBITDA.

DIVIDEND

On May 7, 2025, the Company’s Board of Directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share pursuant to the Company’s dividend policy. The dividend will be paid on June 4, 2025, to stockholders of record as of the close of business on May 21, 2025. In addition, the Company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters.

CONFERENCE CALL DETAILS

Ormat will host a conference call to discuss its financial results and other matters discussed in this press release on Thursday, May 8, 2025, at 9:00 a.m. ET.

Participants within the United States and Canada, please dial +1-800-715-9871, approximately 15 minutes prior to the scheduled start of the call. If you are calling outside of the United States and Canada, please dial +1-646-960-0440. The access code for the call is 3818407. Please request the “Ormat Technologies, Inc. call” when prompted by the conference call operator. The conference call will also be accompanied by a live webcast which will be hosted on the Investor Relations section of the Company’s website.

A replay will be available one hour after the end of the conference call. To access the replay within the United States and Canada, please dial 1-800-770-2030. From outside of the United States and Canada, please dial +1-647-362-9199. Please use the replay access code 3818407. The webcast will also be archived on the Investor Relations section of the Company’s website.

ABOUT ORMAT TECHNOLOGIES

With over five decades of experience, Ormat Technologies, Inc. is a leading geothermal company, and the only vertically integrated company engaged in geothermal and recovered energy generation (“REG”), with robust plans to accelerate long-term growth in the energy storage market and to establish a leading position in the U.S. energy storage market. The Company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter – a power generation unit that converts low-, medium- and high-temperature heat into electricity. The Company has engineered, manufactured and constructed power plants, which it currently owns or has installed for utilities and developers worldwide, totaling approximately 3,400 MW of gross capacity. Ormat leveraged its core capabilities in the geothermal and REG industries and its global presence to expand the Company’s activity into energy storage services, solar Photovoltaic (PV) and energy storage plus Solar PV. Ormat’s current total generating portfolio is 1,538MW with a 1,248MW geothermal and solar generation portfolio that is spread globally in the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, and a 290MW energy storage portfolio that is located in the U.S.

ORMAT’S SAFE HARBOR STATEMENT

Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues and Adjusted EBITDA, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, legal, market, industry and geopolitical developments and incentives, demand for renewable energy, and the growth of our business and operations, are forward-looking statements. When used in this press release, the words “may”, “will”, “could”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, or “contemplate” or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. These forward-looking statements generally relate to Ormat’s plans, objectives and expectations for future operations and are based upon its management’s current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. Actual future results may differ materially from those projected as a result of certain risks and uncertainties and other risks described under “Risk Factors” as described in Ormat’s most recent annual report, and in subsequent filings.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Statement of Operations
For the Three Months Ended March 31, 2025, and 2024

	Three Months Ended March 31,
	2025		2024
Revenues:	(Thousands, except per share data)
Electricity	180,241		191,253
Product	31,769		24,832
Energy storage	17,752		8,081
Total revenues	229,762		224,166
Cost of revenues:
Electricity	119,833		116,730
Product	24,684		21,154
Energy storage	12,318		7,472
Total cost of revenues	156,835		145,356
Gross profit	72,927		78,810
Operating expenses:
Research and development expenses	2,542		1,564
Selling and marketing expenses	4,172		5,126
General and administrative expenses	17,909		19,537
Other operating income	(3,125	)	—
Write-off of unsuccessful exploration and storage activities	516		—
Operating income	50,913		52,583
Other income (expense):
Interest income	1,313		1,839
Interest expense, net	(34,473	)	(30,968	)
Derivatives and foreign currency transaction gains (losses)	2,060		(1,582	)
Income attributable to sale of tax benefits	17,571		17,476
Other non-operating income, net	222		26
Income from operations before income tax and equity in earnings of investees	37,606		39,374
Income tax (provision) benefit	3,795		147
Equity in earnings (losses) of investees	(367	)	829
Net income	41,034		40,350
Net income attributable to noncontrolling interest	(672	)	(1,763	)
Net income attributable to the Company’s stockholders	40,362		38,587
Earnings per share attributable to the Company’s stockholders:
Basic:	0.67		0.64
Diluted:	0.66		0.64
Weighted average number of shares used in computation of earnings per share attributable to the Company’s stockholders:
Basic	60,559		60,386
Diluted	60,840		60,536

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheet
For the Period Ended March 31, 2025, and the Period Ended December 31, 2024

	March 31, 2025		December 31, 2024
ASSETS	(In thousands)
Current assets:
Cash and cash equivalents	112,704		94,395
Restricted cash and cash equivalents (primarily related to VIEs)	112,001		111,377
Receivables:
Trade less allowance for credit losses of $249 and $163 respectively (primarily related to VIEs)	173,590		164,050
Other	45,489		50,792
Inventories	42,107		38,092
Costs and estimated earnings in excess of billings on uncompleted contracts	20,940		29,243
Prepaid expenses and other	94,023		59,173
Total current assets	600,854		547,122
Investment in unconsolidated companies	158,618		144,585
Deposits and other	89,021		75,383
Deferred income taxes	165,983		153,936
Property, plant and equipment, net ($3,261,700 and $3,271,248 related to VIEs, respectively)	3,497,915		3,501,886
Construction-in-process ($370,762 and $251,442 related to VIEs, respectively)	844,873		755,589
Operating leases right of use ($13,725 and $13,989 related to VIEs, respectively)	32,232		32,114
Finance leases right of use (none related to VIEs)	2,935		2,841
Intangible assets, net	295,225		301,745
Goodwill	151,291		151,023
Total assets	5,838,947		5,666,224

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	201,354		234,334
Commercial paper (less deferred financing costs of $22 and $23, respectively)	99,978		99,977
Billings in excess of costs and estimated earnings on uncompleted contracts	52,198		23,091
Current portion of long-term debt:
Limited and non-recourse (primarily related to VIEs)	70,453		70,262
Full recourse	184,227		161,313
Financing Liability	5,905		4,093
Operating lease liabilities	3,657		3,633
Finance lease liabilities	1,451		1,375
Total current liabilities	619,223		598,078
Long-term debt, net of current portion:
Limited and non-recourse: (primarily related to VIEs and less deferred financing costs of $8,216 and $8,849, respectively)	560,824		578,204
Full recourse: (less deferred financing costs of $4,782 and $4,671, respectively)	957,027		822,828
Convertible senior notes (less deferred financing costs of $6,138 and $6,820, respectively)	470,299		469,617
Financing Liability	213,810		216,476
Operating lease liabilities	22,722		22,523
Finance lease liabilities	1,544		1,529
Liability associated with sale of tax benefits	144,081		152,292
Deferred income taxes	71,479		68,616
Liability for unrecognized tax benefits	6,481		6,272
Liabilities for severance pay	11,147		10,488
Asset retirement obligation	131,431		129,651
Other long-term liabilities	33,533		29,270
Total liabilities	3,243,601		3,105,844

Redeemable noncontrolling interest	9,573		9,448

Equity:
The Company’s stockholders’ equity:
Common stock, par value $0.001 per share; 200,000,000 shares authorized; 60,662,626 and 60,500,580 issued and outstanding as of March 31, 2025, and December 31, 2024, respectively	61		61
Additional paid-in capital	1,640,910		1,635,245
Treasury stock, at cost (258,667 shares held as of March 31, 2025, and December 31, 2024, respectively)	(17,964	)	(17,964	)
Retained earnings	847,607		814,518
Accumulated other comprehensive income (loss)	(9,410	)	(6,731	)
Total stockholders’ equity attributable to Company’s stockholders	2,461,204		2,425,129
Noncontrolling interest	124,569		125,803
Total equity	2,585,773		2,550,932
Total liabilities, redeemable noncontrolling interest and equity	5,838,947		5,666,224

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA
For the Three Months Ended March 31, 2025, and 2024

We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation, (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) cost related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; and (viii) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor’s ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2025, and 2024:

	Three Months Ended March 31,
	2025		2024
	(Dollars in thousands)
Net income	41,034		40,350
Adjusted for:
Interest expense, net (including amortization of deferred financing costs)	33,160		29,129
Income tax provision (benefit)	(3,795	)	(147	)
Adjustment to investment in unconsolidated companies: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen	3,421		3,352
Depreciation, amortization and accretion	69,157		61,676
EBITDA	142,977		134,360
Mark-to-market (gains) or losses of derivative instruments	939		813
Stock-based compensation	4,911		4,769
Allowance for bad debts	26		—
Merger and acquisition transaction costs	—		1,299
Settlement agreement	900		—
Write-off of unsuccessful exploration and storage activities	516		—
Adjusted EBITDA	150,269		141,241

ORMAT TECHNOLOGIES, INC AND SUBSIDIARIES
Reconciliation of Adjusted Net Income attributable to the Company’s stockholders and Adjusted EPS
For the Three Months Ended March 31, 2025, and 2024

Adjusted Net Income attributable to the Company’s stockholders and Adjusted diluted EPS are adjusted for one-time expense items that are not representative of our ongoing business and operations. The use of Adjusted Net income attributable to the Company’s stockholders and Adjusted diluted EPS is intended to enhance the usefulness of our financial information by providing measures to assess the overall performance of our ongoing business.

The following tables reconciles Net income attributable to the Company’s stockholders and Adjusted diluted EPS for the three months ended March 31, 2025, and 2024.

	Three Months Ended March 31,
	2025	2024
	(Dollars in millions, except per share data)
GAAP Net income attributable to the Company’s stockholders	40.4	38.6
Write-off of unsuccessful exploration and storage activities	0.41	–
Merger and acquisition transaction costs	–	1.0
Allowance for bad debts	0.02	–
Settlement agreement	0.71	–
Adjusted Net income attributable to the Company’s stockholders	41.5	39.6
GAAP diluted EPS	0.66	0.64
Write-off of unsuccessful exploration and storage activities	0.01	–
Merger and acquisition transaction costs	–	0.02
Allowance for bad debts	0.00	–
Settlement agreement	0.01	–
Adjusted Diluted EPS ($)	0.68	0.65

Ormat Technologies Contact:
Smadar Lavi
VP Head of IR and ESG Planning & Reporting
775-356-9029 (ext. 65726)
slavi@ormat.com

Investor Relations Agency Contact:
Joseph Caminiti or Josh Carroll
Alpha IR Group
312-445-2870
ORA@alpha-ir.com

The MIL Network –

May 8, 2025

MIL-OSI USA: Cotton to Gabbard: Do Not Assist German Surveillance of Political Opposition

US Senate News:

Source: United States Senator for Arkansas Tom Cotton
FOR IMMEDIATE RELEASEContact: Caroline Tabler or Patrick McCann (202) 224-2353May 7, 2025
Cotton to Gabbard: Do Not Assist German Surveillance of Political Opposition
Washington, D.C. — Senator Tom Cotton (R-Arkansas) today sent a letter to Tulsi Gabbard, the Director of National Intelligence requesting a pause on all intelligence sharing with Germany’s domestic intelligence agency, the BvF, that could be used to target political opponents. This letter comes after the BvF’s recent classification of German opposition party Alternative for Germany (AfD) as a “proven right-wing extremist organization.”
In part, Senator Cotton wrote:
“I understand that liberal elites on both sides of the Atlantic loathe the AfD, but AfD’s platform has resonated with many Germans. Unsurprisingly so, since an agenda of strong borders, energy independence, and economic growth has appealed to our own electorate and may other Western democracies. Rather than trying to undermine the AfD using the tools of authoritarian states, Germany’s incoming government might be better advised to consider why the AfD continues to gain electoral ground and how German’s government can address the reasonable concerns of its citizens.”
Full text of the letter may be found here and below.
The Honorable Tulsi Gabbard
Director of National Intelligence
1500 Tysons McLean Drive
McLean, VA 22102
Dear Director Gabbard:
In support of the Trump administration’s goals to prevent the weaponization of our nation’s intelligence agencies, I urge you to ensure that foreign intelligence collected by those agencies isn’t shared with the German government to be used against its political opposition.
On May 2, Germany’s domestic intelligence agency, the Federal Office for the Protection of the Constitution (BfV) classified the Alternative for Germany (AfD) Party as a “proven right-wing extremist organization.” Under German law, this decision allows BfV to intensify surveillance on AfD through signals collection and the use of undercover informants to support a potential party ban. In other words, German intelligence can now eavesdrop, monitor, and infiltrate Germany’s main opposition party and its second largest vote-getter in the recent elections. One would expect such police-state activities in dictatorships like Communist China and Russia—not Western Europe’s largest country.
I understand that liberal elites on both sides of the Atlantic loathe the AfD, but AfD’s platform has resonated with many Germans. Unsurprisingly so, since an agenda of strong borders, energy independence, and economic growth has appealed to our own electorate and may other Western democracies. Rather than trying to undermine the AfD using the tools of authoritarian states, Germany’s incoming government might be better advised to consider why the AfD continues to gain electoral ground and how the German government can address the reasonable concerns of its citizens.
Until the German government treats the AfD as a legitimate opposition party and not as a “right-wing extremist organization,” I ask that you direct our intelligence agencies to take the follow actions:
Pause the sharing of intelligence with BfV that could be used to target the AfD,
Refuse requests of assistance from the BfV to surveil AfD and its members, and
Review whether our intelligence agencies under the Biden administration cooperated with German requests to surveil the AfD or other opposition parties and notify the Senate of the findings of the review.
Sincerely,
Tom Cotton
Chairman

MIL OSI USA News –

May 8, 2025

MIL-OSI Video: Today, David Perdue was sworn in to serve as the U.S. Ambassador to the People’s Republic of China.

Source: United States of America – The White House (video statements)

#Trump #DonaldTrump #PresidentTrump #POTUS #WhiteHouse #DavidPerdue #Perdue #China #ambassador

https://www.youtube.com/watch?v=_osN2SU0yQg

MIL OSI Video –

May 8, 2025

MIL-OSI USA: Attorney General Bonta: Trump Administration Must Make a U-Turn on Illegal Withholding of Billions in Funding for EV Charging Infrastructure

Source: US State of California

BURLINGAME – California Attorney General Rob Bonta, California Governor Gavin Newsom, California Department of Transportation, and the California Energy Commission, today co-led a coalition of 17 attorneys general in filing a lawsuit against the Trump Administration for unlawfully withholding billions of dollars in funding approved by bipartisan majorities in Congress for electric vehicle (EV) charging infrastructure that would reduce planet-warming pollution, expand access to clean vehicles, and create thousands of green jobs. Under the direction of the President, the Federal Highway Administration (FHWA) issued a directive to thwart Congress’s $5 billion program, the National Electric Vehicle Infrastructure (NEVI) formula program, which would expand EV charging infrastructure nationwide. This directive purports to revoke the approval of all prior state EV infrastructure plans and withholds the distribution of federal funds to states. Specifically, in California, FHWA’s unlawful actions would cost the state more than $300 million, eliminate thousands of good-paying jobs, and dismantle a critical, emerging tech industry.

“The President continues his unconstitutional attempts to withhold funding that Congress appropriated to programs he dislikes. This time he’s illegally stripping away billions of dollars for electric vehicle charging infrastructure, all to line the pockets of his Big Oil friends,” said Attorney General Rob Bonta. “The facts don’t lie: The demand for clean transportation continues to rise, and California will be at the forefront of this transition to a more sustainable, low-emissions future. California will not back down, not from Big Oil, and not from federal overreach.”

“When America retreats, China wins. President Trump’s illegal action withholding funds for electric vehicle infrastructure is yet another Trump gift to China – ceding American innovation and killing thousands of jobs,” said Governor Gavin Newsom. “Instead of hawking Teslas on the White House lawn, President Trump could actually help Elon – and the nation – by following the law and releasing this bipartisan funding.”

“California remains fully committed to developing a robust, reliable and accessible EV charging network which will help improve air quality and enhance the EV driving experience for all,” said California Energy Commission Chair David Hochschild.

“Withholding funding now would be wasteful, illegal, performative, and only serve to delay the progress we’ve made in building a cleaner, more sustainable transportation future,” said California Transportation Secretary Toks Omishakin. “We will continue to stand up for Californians and the nation because the future of the planet depends on it.”

In 2022, Congress passed the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law. One provision of the IIJA appropriated $5 billion for NEVI to facilitate a national network of electric vehicle charging infrastructure across the states, making clean cars accessible and convenient for more consumers and markets. On Day One, President Trump issued an executive order directing federal agencies to immediately stop releasing certain funds appropriated through the IIJA, including $5 billion that Congress appropriated for electric vehicle charging stations under NEVI. Following that directive, FHWA effectively halted the NEVI program by, among other things, withholding billions in funds that Congress had directed to the States for building EV infrastructure.

California continues to lead the nation in the adoption of zero-emission vehicles (ZEVs) and the development of supporting infrastructure to rapidly deploy funds to develop and ensure a reliable and easy-to-use charging network. To date, over 2 million ZEVs have been sold in California, representing more than 30% of all ZEVs sold in the United States.

The California Energy Commission anticipates that California will need several hundred thousand more EV charging ports to support light-duty cars and trucks and incrementally more charging ports for medium- and heavy-duty trucks and buses to meet climate goals. California’s State Electric Vehicle Infrastructure Deployment Plan, approved by the federal government, would leverage public funding and private investment to build out a statewide charging infrastructure, including $384 million from the NEVI program.

The complaint filed today alleges that the NEVI directive was arbitrary and capricious and not in accordance with law under the federal Administrative Procedure Act, and in violation of the U.S. Constitution. The NEVI program was created by statute, and, as it is a formula program, the amounts due to states are allocated by Congress, not the President. The complaint asks the court to declare that the NEVI directive is unlawful and to permanently stop the administration from withholding the funds. The states also seek a preliminary injunction to halt the illegal withholding of NEVI funds to the states.

In filing the lawsuit Attorney General Bonta was joined by the attorneys general of Washington, Colorado, Arizona, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Wisconsin, Vermont, and the District of Columbia.

A copy of the complaint will be made available here.

MIL OSI USA News –

May 8, 2025

MIL-OSI: Veeco Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

First Quarter 2025 Highlights:

Revenue of $167.3 million, compared with $174.5 million in the same period last year
GAAP net income of $11.9 million, or $0.20 per diluted share, compared with $21.9 million, or $0.37 per diluted share in the same period last year
Non-GAAP net income of $22.2 million, or $0.37 per diluted share, compared with $26.4 million, or $0.45 per diluted share in the same period last year

PLAINVIEW, N.Y., May 07, 2025 (GLOBE NEWSWIRE) — Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its first quarter ended March 31, 2025. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release.

U.S. Dollars in millions, except per share data

GAAP Results	Q1 ’25		Q1 ’24
Revenue	$	167.3	$	174.5
Net income	$	11.9	$	21.9
Diluted earnings per share	$	0.20	$	0.37

Non-GAAP Results	Q1 ’25		Q1 ’24
Operating income	$	24.3	$	29.4
Net income	$	22.2	$	26.4
Diluted earnings per share	$	0.37	$	0.45

“Veeco delivered solid results during the first quarter, including sequential and year-over-year growth in our Semiconductor business driven by growth in Advanced Packaging,” commented Bill Miller, Ph.D., Veeco’s Chief Executive Officer. “In addition, Veeco shared several exciting announcements, including receipt of Intel’s 2025 EPIC supplier award, new application wins in Laser Annealing, and new application wins in Wet Processing. Each reflect our continued execution and confidence our long-term strategy can generate value for shareholders in the coming years.”

Guidance and Outlook

The following guidance is provided for Veeco’s second quarter 2025:

Revenue is expected in the range of $135 million to $165 million
GAAP diluted earnings (loss) per share are expected in the range of ($0.05) to $0.17
Non-GAAP diluted earnings per share are expected in the range of $0.12 to $0.32

Conference Call Information

A conference call reviewing these results has been scheduled for today, May 7, 2025 starting at 5:00pm ET. To join the call, dial 1-877-407-8029 (toll-free) or 1-201-689-8029. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco’s website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.

About Veeco

Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

Forward-looking Statements

This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “scheduled,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; our ability to obtain and protect intellectual property rights in key technologies; the effects of regional or global health epidemics; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K, 10-Q and 8-K, and from time-to-time in our other SEC reports. All forward-looking statements speak only to management’s expectations, estimates, projections and assumptions as of the date of this press release or, in the case of any document referenced herein or incorporated by reference, the date of that document. The Company does not undertake any obligation to update or publicly revise any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

–financial tables attached-

Veeco Contacts:

Investors:	Anthony Pappone	(516) 500-8798	apappone@veeco.com
Media:	Javier Banos	(516) 673-7328	jbanos@veeco.com

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)

	Three months ended March 31,
	2025			2024
Net sales	$	167,292		$	174,484
Cost of sales		98,825			99,065
Gross profit		68,467			75,419
Operating expenses, net:
Research and development		28,514			29,642
Selling, general, and administrative		25,028			24,700
Amortization of intangible assets		821			1,891
Other operating expense (income), net		(44	)		(2,859	)
Total operating expenses, net		54,319			53,374
Operating income		14,148			22,045
Interest income (expense), net		836			705
Income (loss) before income taxes		14,984			22,750
Income tax expense (benefit)		3,037			896
Net income	$	11,947		$	21,854

Income per common share:
Basic	$	0.21		$	0.39
Diluted	$	0.20		$	0.37

Weighted average number of shares:
Basic		57,753			55,968
Diluted		60,234			60,764

Veeco Instruments Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)

	March 31,		December 31,
	2025		2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	174,898	$	145,595
Restricted cash		169		224
Short-term investments		178,395		198,719
Accounts receivable, net		114,368		96,834
Contract assets		33,586		37,109
Inventories		254,051		246,735
Prepaid expenses and other current assets		39,338		39,316
Total current assets		794,805		764,532
Property, plant and equipment, net		113,787		113,789
Operating lease right-of-use assets		25,991		26,503
Intangible assets, net		8,010		8,832
Goodwill		214,964		214,964
Deferred income taxes		118,567		120,191
Other assets		2,700		2,766
Total assets	$	1,278,824	$	1,251,577

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	57,845	$	43,519
Accrued expenses and other current liabilities		62,257		55,195
Contract liabilities		57,211		64,986
Income taxes payable		1,546		2,086
Current portion of long-term debt		—		26,496
Total current liabilities		178,859		192,282
Deferred income taxes		663		689
Long-term debt		249,955		249,702
Long-term operating lease liabilities		33,694		34,318
Other liabilities		3,795		3,816
Total liabilities		466,966		480,807

Total stockholders’ equity		811,858		770,770
Total liabilities and stockholders’ equity	$	1,278,824	$	1,251,577

Note on Reconciliation Tables

The below tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2025) (in thousands) (unaudited)

				Non-GAAP Adjustments
Three months ended March 31, 2025	GAAP			Share-Based Compensation		Amortization		Other		Non-GAAP
Net sales	$	167,292								$	167,292
Gross profit		68,467		1,343							69,810
Gross margin		40.9	%								41.7	%
Operating expenses		54,319		(7,865	)	(821	)	(99	)		45,534
Operating income		14,148		9,208		821		99	^		24,276
Net income		11,947		9,208		821		231	^		22,207

_______________
^ – See table below for additional details.

Other Non-GAAP Adjustments (Q1 2025) (in thousands) (unaudited)

Three months ended March 31, 2025
Other	$	99
Subtotal		99
Non-cash interest expense		257
Non-GAAP tax adjustment *		(125	)
Total Other	$	231

_______________
* – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q1 2025) (in thousands, except per share amounts) (unaudited)

	Three months ended March 31, 2025
	GAAP		Non-GAAP
Numerator:
Net income	$	11,947	$	22,207
Interest expense associated with 2025 and 2027 Convertible Senior Notes		253		273
Net income available to common shareholders	$	12,200	$	22,480

Denominator:
Basic weighted average shares outstanding		57,753		57,753
Effect of potentially dilutive share-based awards		693		693
Dilutive effect of 2025 Convertible Senior Notes		—		174
Dilutive effect of 2027 Convertible Senior Notes ⁽¹⁾		1,788		1,354
Diluted weighted average shares outstanding		60,234		59,974

Net income per common share:
Basic	$	0.21	$	0.38
Diluted	$	0.20	$	0.37

_______________
⁽¹⁾ – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2024) (in thousands) (unaudited)

				Non-GAAP Adjustments
Three months ended March 31, 2024		GAAP		Share-based Compensation		Amortization		Other			Non-GAAP
Net sales	$	174,484									$	174,484
Gross profit		75,419		1,730								77,149
Gross margin		43.2	%									44.2	%
Operating expenses		53,374		(6,352	)	(1,891	)	2,658				47,789
Operating income		22,045		8,082		1,891		(2,658	)	^		29,360
Net income		21,854		8,082		1,891		(5,384	)	^		26,443

_______________
^ – See table below for additional details.

Other Non-GAAP Adjustments (Q1 2024) (in thousands) (unaudited)

Three months ended March 31, 2024
Changes in contingent consideration	$	(625	)
Sale of productive assets		(2,033	)
Subtotal		(2,658	)
Non-cash interest expense		296
Non-GAAP tax adjustment *		(3,022	)
Total Other	$	(5,384	)

_______________
* – The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

Net Income per Common Share (Q1 2024) (in thousands, except per share amounts) (unaudited)

	Three months ended March 31, 2024
	GAAP		Non-GAAP
Numerator:
Net income	$	21,854	$	26,443
Interest expense associated with 2025 and 2027 Convertible Senior Notes		514		466
Net income available to common shareholders	$	22,368	$	26,909

Denominator:
Basic weighted average shares outstanding		55,968		55,968
Effect of potentially dilutive share-based awards		939		939
Dilutive effect of 2025 Convertible Senior Notes		1,104		1,104
Dilutive effect of 2027 Convertible Senior Notes ⁽¹⁾		1,788		1,354
Dilutive effect of 2029 Convertible Senior Notes		965		965
Diluted weighted average shares outstanding		60,764		60,330

Net income per common share:
Basic	$	0.39	$	0.47
Diluted	$	0.37	$	0.45

_______________
(1) – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2025 and 2024) (in thousands) (unaudited)

	Three months ended			Three months ended
	March 31, 2025			March 31, 2024
GAAP Net income	$	11,947		$	21,854
Share-based compensation		9,208			8,082
Amortization		821			1,891
Sale of productive assets		—			(2,033	)
Changes in contingent consideration		—			(625	)
Interest (income) expense, net		(836	)		(705	)
Other		99			—
Income tax expense (benefit)		3,037			896
Non-GAAP Operating income	$	24,276		$	29,360

Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025) (in millions, except per share amounts) (unaudited)

								Non-GAAP Adjustments
Guidance for the three months ending								Share-based
June 30, 2025	GAAP							Compensation		Amortization		Other		Non-GAAP
Net sales	$	135		–	$	165								$	135		–	$	165
Gross profit		54		–		69		1		—		—			55		–		70
Gross margin		39	%	–		41	%								40	%	–		42	%
Operating expenses		57		–		58		(9	)	(1	)	—			47		–		48
Operating income (loss)		(3	)	–		11		10		1		—			8		–		22
Net income (loss)	$	(3	)	–	$	10		10		1		(1	)	$	7		–	$	20

Income (loss) per diluted common share	$	(0.05	)	–	$	0.17								$	0.12		–	$	0.32

Income per Diluted Common Share (Q2 2025) (in millions, except per share amounts) (unaudited)

Guidance for the three months ending June 30, 2025	GAAP						Non-GAAP
Numerator:
Net income (loss) available to common shareholders	$	(3	)	–	$	10	$	7	–	$	20

Denominator:
Basic weighted average shares outstanding		58				58		58			58
Effect of potentially dilutive share-based awards		—				1		1			1
Dilutive effect of 2027 Convertible Senior Notes ⁽¹⁾		—				2		—			1
Diluted weighted average shares outstanding		58				61		59			61

Net income per common share:
Income (loss) per diluted common share	$	(0.05	)	–	$	0.17	$	0.12	–	$	0.32

_______________
⁽¹⁾ – The non-GAAP incremental dilutive shares includes the impact of the Company’s capped call transaction issued concurrently with our 2027 Notes, and as such, an effective conversion price of $18.46 is used when determining incremental shares to add to the dilutive share count. The GAAP incremental dilutive shares does not include the impact of the Company’s capped call transaction, and as such, an effective conversion price of $13.98 is used when determining incremental shares to add to the dilutive share count.

Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2025) (in millions) (unaudited)

Guidance for the three months ending June 30, 2025
GAAP Net income (loss)	$	(3	)	–	$	10
Share-based compensation		10		–		10
Amortization		1		–		1
Interest income, net		(1	)	–		(1	)
Income tax expense (benefit)		—		–		1
Non-GAAP Operating income	$	8		–	$	22

Note: Amounts may not calculate precisely due to rounding.

The MIL Network –

May 8, 2025

MIL-OSI: Silvaco Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Achieved gross bookings of $13.7 million and revenue of $14.1 million in the first quarter 2025

Signed 9 new customers in the first quarter 2025 and expanded relationship with existing customers across key markets including AI, Photonics, and IoT

Expanded Product Portfolio with the Acquisition of Tech-X Corporation

SANTA CLARA, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, today announced its first quarter 2025 results.

“We are pleased to have completed our first acquisition since our IPO in the first quarter of 2025, and have since announced our second acquisition of 2025, advancing our inorganic growth strategy and expanding our product portfolio,” said Dr. Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued, “We believe our solid fundamentals and focus on innovation position us to sustain strong customer momentum and drive continued growth in our EDA and TCAD product lines through 2025. We are committed to defending shareholder value through performance, transparency, and responsible capital management. We believe the fundamentals of Silvaco are strong—and we’re taking clear, measurable steps to align our market presence with the long-term strength of our business.”

Commenting on the financial results and outlook, Keith Tainsky, Silvaco’s Interim Chief Financial Officer, added, “Given the current economic uncertainty, we have provided a broad guidance range for the second quarter of 2025. The company remains well positioned to deliver solid growth, supported by strong customer demand. We also updated our full-year guidance and remain confident in our ability to achieve our strategic and financial objectives.”

First Quarter 2025 and Recent Business Highlights

Acquired 9 new customers across key markets including AI infrastructure (Power, Memory, Foundry) Photonics, and IoT markets, which represented approximately 23% of gross bookings for the quarter. We also expanded opportunities with existing customers, which accounted for 38% of gross bookings.
Gained momentum with Power, Photonics, and Advanced CMOS customers as they expand adoption of the FTCO platform for their next-generation product development. We announced that Excelliance MOS adopted Silvaco DTCO Flow for next generation silicon carbide devices and our partnership with Korean Kyung Hee University’s Professor Jin Jang on FTCO for next generation display technologies.
Expanded SAM by an estimated $600 million with the acquisitions of Cadence’s PPC product line and Tech-X Corporation.
Faraday Technology selected Silvaco FlexCAN IP for advanced automotive ASIC design.
ProMOS adopted our Victory TCAD solution for the development of next generation silicon photonics devices.
On April 29, 2025, Silvaco closed the acquisition of Tech-X Corporation, expanding our product offerings into wafer-level and photonics digital twin modeling.
Beginning with this quarter, we will be providing a new performance metric called Annual Contract Value, or ACV. We use ACV internally as a supplemental measure to evaluate the performance of our customer agreements and the underlying momentum of the business. While not a measure calculated in accordance with GAAP, we believe ACV provides additional insight into the scale and timing of customer commitments, which may not be fully reflected in recognized revenue due to the timing of revenue recognition under ASC 606.

First Quarter 2025 Financial Results

GAAP Financial Results

Revenue of $14.1 million, down 11% year-over-year and down 21% quarter-over-quarter.
- TCAD revenue of $7.9 million, down 26% year-over-year, primarily due to earlier renewals last year.
- EDA revenue of $5.1 million, up 8% year-over-year, including the addition of PPC product revenue of $1.9 million.
- SIP revenue of $1.1 million, up 89% year-over-year, primarily driven by new bookings in automotive and IoT customers.
GAAP gross profit and GAAP gross margin were $11.1 million and 79%, respectively, which includes the impact of $0.2 million in stock-based compensation expense, and $0.2 million in amortization of acquired intangible assets, down from $13.9 million and 88% in Q1 2024.
GAAP net loss of $19.3 million, compared to a GAAP net income of $1.4 million in Q1 2024.
GAAP basic net loss per share of $(0.67), compared to GAAP basic and diluted net income per share of $0.07 in Q1 2024.
As of March 31, 2025, cash and cash equivalents and marketable securities totaled $74.5 million.

Key Operating Indicators and Non-GAAP Financial Results:

Gross bookings were $13.7 million, down 15% year-over-year.
As of March 31, 2025, the remaining performance obligation balance of $33.7 million, 45% of which is expected to be recognized as revenue in the next 12 months.
Non-GAAP gross profit and non-GAAP gross margin were $11.5 million and 82%, respectively, down from $13.9 million and 88% in Q1 2024.
Non-GAAP net loss of $1.9 million, compared to non-GAAP net income of $2.4 million in Q1 2024.
Non-GAAP diluted net loss per share of $(0.07), compared to non-GAAP diluted net income per share of $0.12 in Q1 2024.
On a trailing-twelve-month (TTM) basis ACV was $52.3 million for the first quarter, up 21% year-over-year. This increase was driven by the amount of growth in organic growth of term-based licenses and renewals, as well as the acquisition of PPC. While quarterly revenue may fluctuate, core annual recurring revenue from new bookings has shown consistent annual growth.

For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric, see “Discussion of Non-GAAP Financial Measures and Other Key Business Metrics” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

Supplementary materials to this press release, including first quarter 2025 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

Second Quarter and Full Year 2025 Financial Outlook

As of May 7, 2025, Silvaco is providing updated guidance for its second quarter of 2025 and its full-year 2025, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin, non-GAAP operating income (loss) and non-GAAP diluted net income (loss) per share. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin and GAAP operating income (loss) is the most comparable GAAP measure to non-GAAP operating income (loss). GAAP diluted net income (loss) per share is the most comparable GAAP measure to non-GAAP diluted net income (loss) per share. Non-GAAP gross margin differs from GAAP gross margin in that it excludes items such as stock-based compensation expense, amortization of acquired intangible assets, and acquisition-related professional fees and retention bonuses. Non-GAAP operating income (loss) differs from GAAP operating income (loss) in that it excludes items such as acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses and IPO preparation costs. Non-GAAP diluted net income (loss) per share differs from GAAP diluted net income (loss) per share in that it excludes certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses, change in fair value of contingent consideration, foreign exchange (gain) loss, and the income tax effect on non-GAAP items. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin, GAAP operating income or GAAP diluted net income (loss) per share or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income or non-GAAP diluted net income (loss) per share guidance to GAAP gross margin or GAAP operating income or GAAP diluted net income (loss) per share, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

Based on current business trends and conditions, the Company expects for second quarter 2025 the following:

Gross bookings in the range of $14.0 million to $18.0 million, which would compare to $19.5 million in the second quarter of 2024.
Revenue in the range of $12.0 million to $16.0 million, which would compare to $15.0 million in the second quarter of 2024.
Non-GAAP gross margin in the range of 80% to 83%, which would compare to 86% in the second quarter of 2024.
Non-GAAP operating loss in the range of ($4.0) million to ($2.0) million, compared to non-GAAP operating income of $1.7 million in the second quarter of 2024.
Non-GAAP diluted net loss per share in the range of ($0.10) to ($0.03), compared to net income per share of $0.07 in the second quarter of 2024.

Based on current business trends and conditions, the Company expects for full year 2025, the following:

Gross bookings in the range of $67.0 million to $74.0 million, which would represent a 2% to 13% increase from $65.8 million in 2024.
Revenue in the range of $64.0 million to $70.0 million, which would represent a 7% to 17% increase from $59.7 million in 2024.
Non-GAAP gross margin in the range of 83% to 86%, which would compare to 86% in 2024.
Non-GAAP operating (loss) income in the range of ($2.0) million loss to $1.0 million income, which would compare to $5.5 million income in 2024.
Non-GAAP diluted net (loss) income per share in the range of ($0.07) net loss per share to $0.03 net income per share, compared to $0.25 net income per share in 2024.

Q1 2025 Conference Call Details

A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

Date: Wednesday, May 7, 2025
Time: 5:00 p.m. Eastern time
Webcast: Here (live and replay)

About Silvaco

Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

Safe Harbor Statement

This press release contains forward-looking statements based on Silvaco’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position, and guidance, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products, and anticipated results of those products for our customers, our competitive positioning, projected costs, technological capabilities, and plans, and macroeconomic trends.

A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation, the following: (a) market conditions; (b) anticipated trends, challenges and growth in our business and the markets in which we operate; (c) our ability to appropriately respond to changing technologies on a timely and cost-effective basis; (d) the size and growth potential of the markets for our software solutions, and our ability to serve those markets; (e) our expectations regarding competition in our existing and new markets; (f) the level of demand in our customers’ end markets; (g) regulatory developments in the United States and foreign countries; (h) changes in trade policies, including the imposition of tariffs; (i) proposed new software solutions, services or developments; (j) our ability to attract and retain key management personnel; (k) our customer relationships and our ability to retain and expand our customer relationships; (l) our ability to diversify our customer base and develop relationships in new markets; (m) the strategies, prospects, plans, expectations, and objectives of management for future operations; (n) public health crises, pandemics, and epidemics and their effects on our business and our customers’ businesses; (o) the impact of the current conflicts between Ukraine and Russia and Israel and Hamas and the ongoing trade disputes among the United States and China on our business, financial condition or prospects, including extreme volatility in the global capital markets making debt or equity financing more difficult to obtain, more costly or more dilutive, delays and disruptions of the global supply chains and the business activities of our suppliers, distributors, customers and other business partners; (p) changes in general economic or business conditions or economic or demographic trends in the United States and foreign countries including changes in tariffs, interest rates and inflation; (q) our ability to raise additional capital; (r) our ability to accurately forecast demand for our software solutions; (s) our expectations regarding the outcome of any ongoing litigation; (t) our ability to successfully integrate recent acquisitions; (u) our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act and as a smaller reporting company under the Exchange Act; (v) our expectations regarding our ability to obtain, maintain, protect and enforce intellectual property protection for our technology; (w) our status as a controlled company; and (x) our use of the net proceeds from our initial public offering.

It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Additional information relating to the uncertainty affecting Silvaco’s business is contained in Silvaco’s filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Silvaco’s website at http://investors.silvaco.com/. These forward-looking statements represent Silvaco’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Silvaco disclaims any obligation to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

Discussion of Non-GAAP Financial Measures and Other Key Business Metrics

We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons.

We define non-GAAP gross profit and non-GAAP gross margin as our GAAP gross profit and GAAP gross margin adjusted to exclude certain costs, including stock-based compensation expense, amortization of acquired intangible assets and acquisition-related professional fees and retention bonuses. We define non-GAAP operating income (loss), as our GAAP operating income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, and acquisition-related professional fees and retention bonuses. We define non-GAAP net income (loss) as our GAAP net income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, acquisition-related professional fees and retention bonuses, change in fair value of contingent consideration, foreign exchange (gain) loss, and the income tax effect on non-GAAP items. Our non-GAAP diluted net income (loss) per share is calculated in the same way as our non-GAAP net income (loss), but on a per share basis. We monitor non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share as non-GAAP financial measures to supplement the financial information we present in accordance with GAAP to provide investors with additional information regarding our financial results.

Certain items are excluded from our non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share because these items are non-cash in nature or are not indicative of our core operating performance and render comparisons with prior periods and competitors less meaningful. We adjust GAAP gross profit, GAAP gross margin, GAAP operating income (loss), GAAP net income (loss), and GAAP diluted net income (loss) per share for these items to arrive at non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structure and the method by which the assets were acquired. By excluding certain items that may not be indicative of our recurring core operating results, we believe that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share provide meaningful supplemental information regarding our performance.

We believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze our financial performance and the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

Annual Contract Value (“ACV”) is a key performance metric for Silvaco and is useful to investors in assessing the strength and trajectory of the 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. 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: (i) the annualized value of term based software licenses with start dates or anniversary dates during the period, plus; (ii) the value of perpetual license contracts with start dates during the period, plus; (iii) the annualized value of maintenance & support as well as any fixed-term services contracts with start dates or anniversary dates during the period, plus; (iv) the value of fixed-deliverable services contracts. Silvaco and the Silvaco logo are registered trademarks of Silvaco Group, Inc. All other trademarks and service marks are the property of their respective owners.

SILVACO GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands except share and par value amounts)

	March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	29,489		$	19,606
Current marketable securities		45,048			63,071
Accounts receivable, net		5,783			9,211
Contract assets, net		15,102			11,932
Prepaid expenses and other current assets		4,500			3,460
Total current assets		99,922			107,280
Non-current assets:
Non-current marketable securities		—			4,785
Property and equipment, net		890			865
Operating lease right-of-use assets, net		1,534			1,711
Intangible assets, net		9,997			4,369
Goodwill		14,337			9,026
Non-current portion of contract assets		9,860			12,611
Other assets		1,595			1,698
Total non-current assets		38,213			35,065
Total assets	$	138,135		$	142,345
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,137		$	3,316
Accrued expenses and other current liabilities		32,426			19,801
Accrued income taxes		1,728			1,668
Deferred revenue, current		8,618			7,497
Operating lease liabilities, current		644			744
Vendor financing obligation, current		1,191			1,462
Total current liabilities		46,744			34,488
Non-current liabilities:
Deferred revenue, non-current		3,604			3,593
Operating lease liabilities, non-current		866			946
Vendor financing obligation, non-current		2,995			2,928
Other non-current liabilities		333			307
Total liabilities		54,542			42,262
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024 , respectively		—			—
Common stock, $0.0001 par value; 500,000,000 shares authorized; 28,805,280 and 28,526,615 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		3			3
Additional paid-in capital		132,937			130,360
Accumulated deficit		(47,285	)		(28,012	)
Accumulated other comprehensive loss		(2,062	)		(2,268	)
Total stockholders’ equity		83,593			100,083
Total liabilities and stockholders’ equity	$	138,135		$	142,345

SILVACO GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(Unaudited, in thousands except share and par value amounts)

	Three Months Ended March 31,
		2025			2024
Revenue:
Software license revenue	$	10,009		$	12,258
Maintenance and service		4,083			3,631
Total revenue		14,092			15,889
Cost of revenue		3,016			1,973
Gross profit		11,076			13,916
Operating expenses:
Research and development		4,800			3,616
Selling and marketing		4,719			3,312
General and administrative		8,120			4,600
Estimated litigation claim		13,069			—
Total operating expenses		30,708			11,528
Operating (loss) income		(19,632	)		2,388
Interest income		863			—
Interest and other expense, net		(291	)		(205	)
(Loss) income before income tax provision		(19,060	)		2,183
Income tax provision		213			805
Net (loss) income	$	(19,273	)	$	1,378
Net (loss) income per share:
Basic and diluted	$	(0.67	)	$	0.07
Weighted average shares used in computing per share amounts:
Basic and diluted		28,694,295			20,000,000

SILVACO GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities:
Net (loss) income	$	(19,273	)	$	1,378
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization		438			120
Stock-based compensation expense		2,277			—
Provision for credit losses		10			222
Estimated litigation claim		13,069			—
Accretion of discount on marketable securities, net		(261	)		—
Change in fair value of contingent consideration		35			(8	)
Changes in operating assets and liabilities:
Accounts receivable		3,520			(1,844	)
Contract assets		440			(3,679	)
Prepaid expenses and other current assets		(1,026	)		788
Other assets		119			(274	)
Accounts payable		(1,183	)		877
Accrued expenses and other current liabilities		55			(729	)
Accrued income taxes		58			574
Deferred revenue		567			(21	)
Other non-current liabilities		20			24
Net cash used in operating activities		(1,135	)		(2,572	)
Cash flows from investing activities:
Maturities of marketable securities		23,000			—
Acquisition of Process Proximity Compensation		(11,500	)		—
Purchases of property and equipment		(96	)		(10	)
Net cash provided by (used in) investing activities		11,404			(10	)
Cash flows from financing activities:
Proceeds from loan facility		—			4,250
Deferred transaction costs		—			(364	)
Payroll taxes related to shares withheld from employees		(252	)		—
Contingent consideration		(46	)		(13	)
Payments of vendor financing obligation		(205	)		—
Net cash (used in) provided by financing activities		(503	)		3,873
Effect of exchange rate fluctuations on cash and cash equivalents		117			27
Net increase in cash and cash equivalents		9,883			1,318
Cash and cash equivalents, beginning of period		19,606			4,421
Cash and cash equivalents, end of period	$	29,489		$	5,739

SILVACO GROUP, INC.
REVENUE
(Unaudited)
	2024										2025
	Q1		Q2		Q3		Q4		Year		Q1
Revenue by Region:
Americas	27	%	51	%	31	%	40	%	38	%	20	%
APAC	62	%	41	%	58	%	52	%	53	%	66	%
EMEA	11	%	8	%	11	%	8	%	9	%	14	%
Total revenue	100	%	100	%	100	%	100	%	100	%	100	%

Revenue by Product Line:
TCAD	66	%	69	%	59	%	71	%	68	%	56	%
EDA	30	%	20	%	24	%	24	%	24	%	36	%
SIP	4	%	11	%	17	%	5	%	8	%	8	%
Total revenue	100	%	100	%	100	%	100	%	100	%	100	%

Revenue Item Category:
Software license revenue	77	%	74	%	62	%	78	%	74	%	71	%
Maintenance and service	23	%	26	%	38	%	22	%	26	%	29	%
Total revenue	100	%	100	%	100	%	100	%	100	%	100	%

Revenue by Country:
United States	26	%	50	%	30	%	39	%	37	%	20	%
China	11	%	17	%	25	%	23	%	18	%	14	%
Other	63	%	33	%	45	%	38	%	45	%	66	%
Total revenue	100	%	100	%	100	%	100	%	100	%	100	%

SILVACO GROUP, INC.
GAAP to Non-GAAP Reconciliation
(Unaudited, in thousands except per share amounts)

	Three Months Ended
	3/31/2025			3/31/2024

GAAP Cost of revenue	$	3,016		$	1,973
Less: Stock-based compensation expense		(199	)		—
Less: Amortization of acquired intangible assets		(249	)		—
Less: Acquisition-related professional fees and retention bonus		(8	)		—
Non-GAAP Cost of revenue	$	2,560		$	1,973
GAAP Gross profit	$	11,076		$	13,916
Add: Stock-based compensation expense		199			—
Add: Amortization of acquired intangible assets		249			—
Add: Acquisition-related professional fees and retention bonus		8			—
Non-GAAP Gross profit	$	11,532		$	13,916
GAAP Research and development	$	4,800		$	3,616
Less: Stock-based compensation expense		(244	)		—
Less: Acquisition-related professional fees and retention bonus		(18	)		—
Less: Amortization of acquired intangible assets		(51	)		(70	)
Non-GAAP Research and development	$	4,487		$	3,546
GAAP Selling and marketing	$	4,719		$	3,312
Less: Stock-based compensation expense		(323	)		—
Less: IPO preparation costs		—			-127
Non-GAAP Selling and marketing	$	4,396		$	3,185
GAAP General and administrative	$	8,120		$	4,600
Less: Stock-based compensation expense		(1,511	)		—
Less: Acquisition-related estimated litigation claim and legal costs		(726	)		(594	)
Less: Acquisition-related professional fees and retention bonus		(677	)		—
Less: Amortization of acquired intangible assets		(62	)		—
Less: IPO preparation costs		—			(139	)
Non-GAAP General and administrative	$	5,144		$	3,867
GAAP Estimated litigation claim	$	13,069		$	—
Less: Acquisition-related estimated litigation claim and legal costs		(13,069	)		—
Non-GAAP Estimated litigation claim	$	—		$	—
GAAP Operating expenses	$	30,708		$	11,528
Less: Stock-based compensation expense		(2,078	)		—
Less: Acquisition-related estimated litigation claim and legal costs		(13,795	)		(594	)
Less: Acquisition-related professional fees and retention bonus		(695	)		—
Less: IPO preparation costs		—			(266	)
Less: Amortization of acquired intangible assets		(113	)		(70	)
Non-GAAP Operating expenses	$	14,027		$	10,598
GAAP Operating (loss) income	$	(19,632	)	$	2,388
Add: Stock-based compensation expense		2,277			—
Add: Acquisition-related estimated litigation claim and legal costs		13,795			594
Add: Acquisition-related professional fees and retention bonus		703			—
Add: IPO preparation costs		—			266
Add: Amortization of acquired intangible assets		362			70
Non-GAAP Operating (loss) income	$	(2,495	)	$	3,318
GAAP Net (loss) income	$	(19,273	)	$	1,378
Add: Stock-based compensation expense		2,277			—
Add: Acquisition-related estimated litigation claim and legal costs		13,795			594
Add: Acquisition-related professional fees and retention bonus		703			—
Add: IPO preparation costs		—			266
Add: Amortization of acquired intangible assets		362			70
Add (Less): Change in fair value of contingent consideration		35			(8	)
Add (Less): Foreign exchange (gain) loss		205			130
Add (Less): Income tax effect of non-GAAP adjustment		(5	)		(33	)
Non-GAAP Net (loss) income	$	(1,901	)	$	2,397
GAAP Net income (loss) per share:
Basic and diluted:	$	(0.67	)	$	0.07
Non-GAAP Net income (loss) per share:
Basic and diluted	$	(0.07	)	$	0.12
Weighted average shares used in GAAP and non-GAAP net income (loss) per share:
Basic and diluted		28,694,295			20,000,000

Investor Contact:
Greg McNiff
investors@silvaco.com

Media Contact:
Farhad Hayat
press@silvaco.com

The MIL Network –

May 8, 2025

MIL-OSI: Fortinet Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Highlights

Total revenue of $1.54 billion, up 14% year over year
Product revenue of $459 million, up 12% year over year
Billings of $1.60 billion, up 14% year over year¹
Unified SASE ARR²up 26% and Security Operations ARR²up 30%, year over year
Record first quarter GAAP operating margin of 29%
Record first quarter Non-GAAP operating margin of 34%¹
Record Cash flow from operations of $863 million
Record Free cash flow of $783 million¹

SUNNYVALE, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the first quarter ended March 31, 2025.

“We are pleased to report another strong quarter as non-GAAP operating margin increased 570 basis points year over year to a first quarter record of 34%, while billings grew 14% year over year,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We continue to accelerate our growth strategy by investing in the rapidly expanding Unified SASE and Security Operations markets, while strengthening our leadership in Secure Networking. Leveraging our deep expertise in networking and security convergence, a strong track record of AI-driven innovation, and seamless product development and integration through our FortiOS operating system, we have established ourselves as the leader in organic innovation and will continue setting the industry standard in cybersecurity.”

Financial Highlights for the First Quarter of 2025

Revenue: Total revenue was $1.54 billion for the first quarter of 2025, an increase of 13.8% compared to $1.35 billion for the same quarter of 2024.

Product Revenue: Product revenue was $459.1 million for the first quarter of 2025, an increase of 12.3% compared to $408.9 million for the same quarter of 2024.

Service Revenue: Service revenue was $1.08 billion for the first quarter of 2025, an increase of 14.4% compared to $944.4 million for the same quarter of 2024.

Billings¹: Total billings were $1.60 billion for the first quarter of 2025, an increase of 13.5% compared to $1.41 billion for the same quarter of 2024.

Remaining performance obligations: Remaining performance obligations were $6.49 billion as of March 31, 2025, an increase of 11.7% compared to $5.81 billion as of March 31, 2024. We expect to recognize approximately $3.38 billion as revenue over the next 12 months, an increase of 15.4% compared to $2.93 billion as of March 31, 2024.

Unified SASE ARR²: Unified SASE ARR was $1.15 billion as of March 31, 2025, an increase of 25.7% compared to $914.7 million as of March 31, 2024.

Security Operations ARR²: Security Operations ARR was $434.5 million as of March 31, 2025, an increase of 30.3% compared to $333.5 million as of March 31, 2024.

GAAP Operating Income and Margin: GAAP operating income was $453.8 million for the first quarter of 2025, representing a GAAP operating margin of 29.5%. GAAP operating income was $321.2 million for the same quarter of 2024, representing a GAAP operating margin of 23.7%.

Non-GAAP Operating Income and Margin¹: Non-GAAP operating income was $526.2 million for the first quarter of 2025, representing a non-GAAP operating margin of 34.2%. Non-GAAP operating income was $386.1 million for the same quarter of 2024, representing a non-GAAP operating margin of 28.5%.

GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $433.4 million for the first quarter of 2025, compared to GAAP net income of $299.3 million for the same quarter of 2024. GAAP diluted net income per share was $0.56 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.39 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.

Non-GAAP Net Income and Diluted Net Income Per Share¹: Non-GAAP net income was $452.3 million for the first quarter of 2025, compared to non-GAAP net income of $333.9 million for the same quarter of 2024. Non-GAAP diluted net income per share was $0.58 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to $0.43 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.

Cash Flow: Cash flow from operations was $863.3 million for the first quarter of 2025, compared to $830.4 million for the same quarter of 2024. Cash flow from operations for the first quarter of 2025 includes $14.0 million proceeds from an intellectual property matter.

Free Cash Flow¹: Free cash flow was $782.8 million for the first quarter of 2025, compared to $608.5 million for the same quarter of 2024.

Guidance

For the second quarter of 2025, Fortinet currently expects:

Revenue in the range of $1.590 billion to $1.650 billion
Billings in the range of $1.685 billion to $1.765 billion
Non-GAAP gross margin in the range of 80.0% to 81.0%
Non-GAAP operating margin in the range of 31.5% to 32.5%
Diluted non-GAAP net income per share in the range of $0.58 to $0.60, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 773 million to 777 million.

For the fiscal year 2025, Fortinet currently expects:

Revenue in the range of $6.650 billion to $6.850 billion
Service revenue in the range of $4.575 billion to $4.725 billion
Billings in the range of $7.200 billion to $7.400 billion
Non-GAAP gross margin in the range of 79.0% to 81.0%
Non-GAAP operating margin in the range of 31.5% to 33.5%
Diluted non-GAAP net income per share in the range of $2.43 to $2.49, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 769 million to 779 million.

These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, gain on intellectual property matters, gain on bargain purchase related to acquisition, gain from an equity method investment and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

¹ A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
² Annual Recurring Revenue or ARR is defined as the annualized value of renewable / recurring customer agreements as of the measurement date, assuming any contract that expires during the next 12 months is renewed at its existing value.

Conference Call Details

Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

Second Quarter 2025 Conference Participation Schedule:

J.P. Morgan Global Technology, Media and Communications Conference
May 13, 2025

Bank of America Global Technology Conference
June 3, 2025

Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

About Fortinet (www.fortinet.com)

Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

Copyright © 2025 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiBranchSASE, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortiDAST, FortiDATA, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, FortiPoint, FortiPoints, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiScanner, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSRA, FortiSwitch, FortiTelemetry, FortiTester, FortiTIP, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR, Lacework FortiCNAPP, Linksys, Intelligent Mesh, Velop, Max-Stream, Performance Perfected and SECURITY FABRIC. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

FTNT-F

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the second quarter and full year 2025, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending; supply chain challenges; negative impacts from the ongoing war in Ukraine and its related macroeconomic effects and our decision to reduce operations in Russia; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of increased inflation and interest rates in certain geographies and the war in Ukraine; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine or tensions between China and Taiwan, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business and cash flows. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matters. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matters, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matters, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our proceeds from intellectual property matters, our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, amortization of acquired intangible assets, less gain on intellectual property matters and, when applicable, other significant non-recurring items in a given quarter. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for a gain on bargain purchase related to acquisition, a gain from an equity method investment related to acquisition and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income and diluted net income per share calculated in accordance with GAAP.

FORTINET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions)

	March 31, 2025			December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,596.6		$	2,875.9
Short-term investments		1,183.9			1,190.6
Accounts receivable—net		1,174.0			1,463.4
Inventory		362.7			315.5
Prepaid expenses and other current assets		125.4			126.1
Total current assets		6,442.6			5,971.5
LONG-TERM INVESTMENTS		35.2			—
PROPERTY AND EQUIPMENT—NET		1,403.8			1,349.5
DEFERRED CONTRACT COSTS		636.2			622.9
DEFERRED TAX ASSETS		1,411.6			1,335.6
GOODWILL AND OTHER INTANGIBLE ASSETS—NET		357.4			350.4
OTHER ASSETS		120.2			133.2
TOTAL ASSETS	$	10,407.0		$	9,763.1
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	224.5		$	190.9
Accrued liabilities		415.0			337.9
Accrued payroll and compensation		250.2			255.7
Current portion of long-term debt		498.7			—
Deferred revenue		3,339.4			3,276.2
Total current liabilities		4,727.8			4,060.7
DEFERRED REVENUE		3,079.0			3,084.7
LONG-TERM DEBT		496.2			994.3
OTHER LIABILITIES		141.1			129.6
Total liabilities		8,444.1			8,269.3
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock		0.8			0.8
Additional paid-in capital		1,668.7			1,636.2
Accumulated other comprehensive loss		(22.9	)		(26.1	)
Retained earnings (accumulated deficit)		316.3			(117.1	)
Total stockholders’ equity		1,962.9			1,493.8
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	10,407.0		$	9,763.1

FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in millions, except per share amounts)

	Three Months Ended
	March 31, 2025			March 31, 2024
REVENUE:
Product	$	459.1		$	408.9
Service		1,080.6			944.4
Total revenue		1,539.7			1,353.3
COST OF REVENUE:
Product		149.9			182.8
Service		143.2			121.9
Total cost of revenue		293.1			304.7
GROSS PROFIT:
Product		309.2			226.1
Service		937.4			822.5
Total gross profit		1,246.6			1,048.6
OPERATING EXPENSES:
Research and development		198.6			173.0
Sales and marketing		542.7			501.1
General and administrative		57.8			54.4
Gain on intellectual property matters		(6.3	)		(1.1	)
Total operating expenses		792.8			727.4
OPERATING INCOME		453.8			321.2
INTEREST INCOME		44.3			32.2
INTEREST EXPENSE		(4.9	)		(5.1	)
OTHER INCOME (EXPENSE)—NET		26.1			(2.9	)
INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS		519.3			345.4
PROVISION FOR INCOME TAXES		96.5			39.5
GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS		10.6			(6.6	)
NET INCOME	$	433.4		$	299.3
Net income per share:
Basic	$	0.56		$	0.39
Diluted	$	0.56		$	0.39
Weighted-average shares outstanding:
Basic		768.3			762.4
Diluted		776.8			770.5

FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions)

	Three Months Ended
	March 31, 2025			March 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	433.4		$	299.3
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation		66.1			62.3
Amortization of deferred contract costs		78.0			72.0
Depreciation and amortization		35.8			28.6
Amortization of investment discounts		(10.3	)		(12.2	)
Other		(35.5	)		9.9
Changes in operating assets and liabilities, net of impact of business combinations:
Accounts receivable—net		303.9			405.6
Inventory		(34.1	)		36.5
Prepaid expenses and other current assets		3.4			(0.1	)
Deferred contract costs		(91.3	)		(66.5	)
Deferred tax assets		(30.0	)		(73.9	)
Other assets		1.5			(6.2	)
Accounts payable		24.6			(61.6	)
Accrued liabilities		63.7			105.0
Accrued payroll and compensation		(8.2	)		(27.4	)
Deferred revenue		57.0			54.8
Other liabilities		5.3			4.3
Net cash provided by operating activities		863.3			830.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments		(503.0	)		(436.1	)
Sales of investments		2.8			—
Maturities of investments		466.9			393.4
Purchases of property and equipment		(66.5	)		(221.9	)
Payments made in connection with business combinations, net of cash acquired		(11.2	)		(5.7	)
Other		0.2			—
Net cash used in investing activities		(110.8	)		(270.3	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		20.2			13.4
Taxes paid related to net share settlement of equity awards		(52.9	)		(42.9	)
Other		—			(0.8	)
Net cash used in financing activities		(32.7	)		(30.3	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		0.9			(1.4	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		720.7			528.4
CASH AND CASH EQUIVALENTS—Beginning of period		2,875.9			1,397.9
CASH AND CASH EQUIVALENTS—End of period	$	3,596.6		$	1,926.3

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (Unaudited, in millions, except per share amounts)

Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share

	Three Months Ended
	March 31, 2025			March 31, 2024
Reconciliation of non-GAAP operating income:
GAAP operating income	$	453.8		$	321.2
GAAP operating margin		29.5	%		23.7	%
Add back:
Stock‐based compensation		66.9			63.0
Amortization of acquired intangible assets		11.8			3.0
Gain on intellectual property matters		(6.3	)		(1.1	)
Non‐GAAP operating income	$	526.2		$	386.1
Non‐GAAP operating margin		34.2	%		28.5	%

Reconciliation of non-GAAP net income:
GAAP net income	$	433.4		$	299.3
Add back:
Stock‐based compensation		66.9			63.0
Amortization of acquired intangible assets		11.8			3.0
Gain on intellectual property matters		(6.3	)		(1.1	)
Gain on bargain purchase ^(a)		(39.9	)		—
Tax adjustment ^(b)		(2.8	)		(30.3	)
Gain from equity method investment ^(c)		(10.8	)		—
Non-GAAP net income	$	452.3		$	333.9



























Non-GAAP net income per share, diluted













Non-GAAP net income	$	452.3		$	333.9













Non-GAAP shares used in diluted net income per share calculations		776.8			770.5













Non-GAAP net income per share, diluted	$	0.58		$	0.43



























Reconciliation of non-GAAP net income per share, diluted













GAAP net income per share, diluted	$	0.56		$	0.39













Add back:













Non-GAAP adjustments to net income per share		0.02			0.04













Non-GAAP net income per share, diluted	$	0.58		$	0.43



























(a) To exclude a $39.9 million gain on bargain purchase related to our acquisition of Linksys Holdings, Inc. (“Linksys”) in the three months ended March 31, 2025.
(b) Non-GAAP financial information is adjusted to an effective tax rate of 18% and 17% in the three months ended March 31, 2025 and 2024, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(c) To exclude a $10.8 million gain from equity method investment in Linksys resulted from our acquisition of Linksys in the three months ended March 31, 2025.

Reconciliation of net cash provided by operating activities to free cash flow

	Three Months Ended
	March 31, 2025			March 31, 2024
Net cash provided by operating activities	$	863.3		$	830.4
Less: Purchases of property and equipment		(66.5	)		(221.9	)
Less: Proceeds from intellectual property matter		(14.0	)		—
Free cash flow	$	782.8		$	608.5
Net cash used in investing activities	$	(110.8	)	$	(270.3	)
Net cash used in financing activities	$	(32.7	)	$	(30.3	)

Reconciliation of total revenue to total billings

	Three Months Ended
	March 31, 2025		March 31, 2024
Total revenue	$	1,539.7	$	1,353.3
Add: Change in deferred revenue		57.5		54.9
Less: Deferred revenue balance acquired in business acquisitions		—		(1.0	)
Total billings	$	1,597.2	$	1,407.2

Investor Contact:	Media Contact:

Aaron Ovadia Fortinet, Inc. 408-235-7700 investors@fortinet.com	Michelle Zimmermann Fortinet, Inc. 408-235-7700 pr@fortinet.com

The MIL Network –

May 8, 2025

Category: China

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