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MIL-OSI USA: On Senate Floor, Shaheen Condemns Proposed Trump Tariffs that Would Increase Costs on Granite Staters

US Senate News:

Source: United States Senator for New Hampshire Jeanne Shaheen

(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) delivered remarks on the Senate floor condemning President Trump’s proposed tariffs on Mexico and Canada, New Hampshire’s largest trading partner, that could cause prices on everything from gas to cars to groceries to skyrocket, hurting Granite Staters and Granite State businesses. Click here to watch the full speech.

Key Quotes from Senator Shaheen:

“Even though many of these tariff taxes were delayed, they’re still scheduled to go into effect next month, and they’ve created unnecessary panic and uncertainty among businesses and families across the country and in New Hampshire.”

“President Trump campaigned on a promise to lower prices for everything. The tariffs that he’s talking about would have the exact opposite effect.”

“For Elon Musk and his billionaire friends, and the billionaire friends of the President, $150 to $250 may not sound like a lot in the winter, but there are a lot of people in New Hampshire for whom $150 to $250 is the difference between staying warm and being cold.”

“I’m glad for the delay. I don’t want people to misunderstand that. But how is a business or a family supposed to plan when they don’t know if important costs like gas or heating or groceries are going to spike any day?”

Remarks as delivered can be found below:

We’re here today to talk about a very serious issue, and that is the tariffs that President Trump is talking about imposing on goods from Canada and Mexico, and the impact that will have on Americans.

On Saturday, President Trump announced a 25% tariff, which would be a tax on imported goods from Canada and Mexico, and a 10% tariff, which would amount to a tax on imported energy from Canada, and on all goods from China.

So, 10% on all goods from China and then 10% on energy from Canada.

He’s also threatened universal tariffs on all countries.

Now, thankfully, the tariffs that he announced on Canada and Mexico appear to have been delayed for a month, but the tariff taxes on China are now in effect.

And even though many of these tariff taxes were delayed, they’re still scheduled to go into effect next month, and they’ve created unnecessary panic and uncertainty among businesses and families across the country and in New Hampshire.

Now, I want to point out in the beginning very clearly that it’s not foreign countries who pay these taxes, these tariff taxes, it’s Americans who pay these tariff taxes.

These are tariff taxes on imported goods, meaning that the person or company who is importing the good will be footing the bill – and these costs will be passed on to American consumers and businesses.

And you don’t have to take my word for it: Best Buy’s CEO said, and I quote, “the vast majority of that tariff will probably be passed on to the consumer as a price increase.”

And Walmart’s CFO said, “there will probably be cases where prices will go up for consumers.”

Columbia Sportswear’s CEO said about tariffs “we’re set to raise prices” and “it’s going to be very, very difficult to keep products affordable.”

Now, if we look at the cost of just the tariff taxes that were originally announced on Saturday, those would raise costs for the average American household by more than $1,200 a year.

And if we get into a trade war with increasingly high tariffs on both sides—and that’s what it appears could be happening with China—those costs would go up even more.

Now, President Trump campaigned on a promise to lower prices for everything. The tariffs that he’s talking about would have the exact opposite effect.

I’m glad the administration and the President listened to reason.

He delayed the start of these tariffs, but I hope we don’t have to be back here in a few weeks making this case again.

And I want to make sure that people understand what these tariff taxes would do and highlight some of the areas where Americans would be directly affected.

First is energy.

America imports more oil and gas from Canada than any other product.

In New Hampshire, more than half of the gas in people’s cars comes from Canada.

These tariff taxes would make gas prices go up, and they could even lead to supply shortages because refinery and delivery infrastructure just doesn’t turn on a dime.

President Trump’s new 10% tariff tax on energy from Canada would also directly raise the cost of keeping warm for Granite Staters during the coldest months of this year.

In New Hampshire, our number one import from Canada is heating oil, and nearly a quarter of a million households in New Hampshire—that’s about 40% of our households—more than Vermont, I think
Senator Welch, rely on fuel oil to heat their homes.

We’re the second highest state in the nation, next to Maine who relies on number two heating oil, to heat our homes.

Another hundred thousand Granite Staters rely on propane and about 30,000 homes use wood.

So that’s about 60% of New Hampshire that relies on delivered fuel to stay warm. Much of that is coming from Canada.

The average home in New Hampshire on heating oil, uses about 600 gallons in the winter and for older, draftier homes, and sadly we have a lot of those in New Hampshire, or those who are further up north, families may be using upwards of a thousand gallons a winter.

And with temperatures dipping as low as 20 below zero in the state in recent weeks, heating oil is a real necessity.

And my constituents are already getting notices, and I don’t know, Senator Welch, if the same is true of your constituents, but I bet it is. But they’re saying that those notices tell them their costs are going to go up if these tariffs go into effect.

On Sunday, I heard from Derek in Sandwich, New Hampshire, who received a letter from his heating supplier, Irving Oil, that informed him that his bill for heating oil would be going up.

The letter stated, “As you may be aware, the U.S. government has announced a new tariff on imports from Canada, including the heating oil or propane that Irving Energy delivers to you.”

And the letter went on to describe that the tariff costs will be added to the price that he pays, even though he already has a contract.

As Derek wrote to me, “I will now have less to spend locally. My local businesses will suffer through lost business and increased costs. And then their suppliers and employees will suffer. It’s a real hardship.”

On inauguration day, this year, heating oil cost an average of $3.93 a gallon in New Hampshire.

Tacking an ill-advised 10% tariff tax on heating oil from Canada could mean about $150 to $250 more for many in New Hampshire just to keep warm through the winter.

And while for Elon Musk and his billionaire friends, and the billionaire friends of the president, $150 to $250 may not sound like a lot in the winter, but there are a lot of people in New Hampshire for whom $150 to $250 is the difference between staying warm and being cold in the winter.

So let me also be clear: We don’t use gas and heating oil from Canada because we don’t produce it here in the United States. We do it because it makes logistical and economic sense because in New England, we are at the end of the pipelines that are coming from Texas and the south.

Now, the United States produces more oil than any other country in the history of the world.

That was true during the last three years of the first Trump Administration. It was true for the last four years of the Biden Administration.

But for New Hampshire, the Saint John Refinery in Canada simply provides us the closest, lowest-cost supply.

And by the way, that refinery sources as much as half of its crude oil from the United States.

So, it’s helping oil producers in the United States send their oil the refinery, and we get it back in New Hampshire and New England.

President Trump campaigned on cutting energy prices in half. Reckless tariffs on Canada and Mexico will make those prices higher, not lower.

New Hampshire families shouldn’t be punished for what The Wall Street journal has just called, “The Dumbest Trade War in History”.

And that’s not all. These tariff taxes will affect groceries because the U.S. imports 38% of our fresh vegetables, 60% of our fresh fruit and more than 99% of the coffee that we drink.

If we take all these together, Americans could be seeing an extra $200 a year on their grocery bills because of the trump tariff taxes.

That doesn’t include the longer term impact of taxes on farm equipment or fertilizer. America imports about 85% of the potash fertilizer we use and much of that comes from Canada.

Now, we already have record-high prices on coffee and eggs, if you can find eggs, some grocery stores are sold out. And one of the things that just happened in the last week is that because of the stop-work order that President Trump put on our services that we provide overseas to track bird flu, we’re no longer tracking the bird flu that has helped to drive up the cost of eggs.

So, it could get worse and we’re not even going to know about it until we see those prices reflected at the grocery store.

Any new 25% tariff tax on these imports would make our food more expensive when families are already stretching and straining their household budgets.

Tariffs sometimes get talked about as a way to support American manufacturers, but that also misses the mark.

Half of the products the U.S. imports are either raw materials or intermediate components, and that means the parts we make into cars or electronics.

All of these inputs would get more expensive for American manufacturers, which is only going to make it harder for them to compete internationally.

One of the messages I hear regularly from businesses is that uncertainty is one of the hardest things for them to deal with.

One example of this is a call I got two weeks ago from a small business owner in New Hampshire who sells specialized agricultural equipment both in the U.S. and overseas.

This is a family business with five employees. His father founded it 50 years ago, and he reached out specifically because he’s worried about what tariffs on the components he buys from Canada could do to his business.

For the specialized equipment that he needs, there aren’t a lot of manufacturers out there.

So, he reached out to my office asking if he was going to have to pay $5,000 more in costs for each of the machines he sells.

He took over this business just a couple of years ago and he’s been working to invest to modernize it and expand.

Now he has to worry about whether he can try to grow the business, whether he might face new foreign competition or even if he can pay out bonuses or give raises to his employees.

He can’t even be certain what kind of pricing schedule he should send out for the year because his costs could go up $5,000 next month.

And last week, I heard from another small business, Granite State Packing. It’s a start-up meat-processing company that’s only two years old.

They started just two years ago, and they already have ten employees.

Last year, they actually got $1.6 million in a grant from USDA to expand their operations. That’s going to allow them to double their workforce.

In order to expand, they placed an order for $500,000 in new equipment because the specialized equipment that they use isn’t made in the United States.

Now, depending on how and when these tariffs go into effect, and when their equipment might get delivered, they could be looking at an increased bill for $125,000.

That’s going to affect whether they can follow through on the expansion, whether they can actually add the staff they want to add, and they don’t have any way of knowing if they’re going to face an unexpected $125,000 bill because President Trump and this administration hasn’t made up their mind about what they’re going do with these tariffs.

Over the weekend, I had another business owner from C&J bus lines, they run a great bus line from the seacoast of New Hampshire to Boston.

The owner told me that they’ve ordered seven new buses from Quebec—new buses because they’re made in Quebec—these tariffs would add $150,000 to the cost of each bus.

Now, between that and the higher fuel costs that they would pay, they could be looking at $1.3 million more in added costs this year because of the Trump tariff tax.

No small business can easily just absorb a 25% price increase, nor can they plan on how to grow their business and keep providing good-paying jobs with this kind of uncertainty.

Make no mistake, I’m glad the administration delayed these tariffs. I hope they understand how this action could affect America’s small businesses and the impact this would have on the economy.

And let me finally just talk about housing impacts, because New Hampshire has an affordable housing crisis.

These tariffs would make that worse.

Lumber makes up about 15% of building a house, and a lot of building materials, in addition to lumber, are imported.

The National Association of Homebuilders wrote in part, and I quote, “imposing additional tariffs on these imports will ultimately be passed on to home buyers in the form of increased housing prices.”

That means that this 25% tariff tax would directly add to the cost of building a home at a time when too many Granite Staters and too many Americans across the country already can’t afford housing.

And we shouldn’t pretend that American tariffs are going to go unanswered. Other countries are going to retaliate, and getting into a tit for tat trade war is not going to help working Americans pay their bills.

Families across New Hampshire and America are worried about the high cost of housing, about the cost of groceries, about what it costs to heat their homes.

Business owners are similarly worried about costs or unexpected expenses. I’m hearing regularly from them about the impact of the uncertainty on their ability to grow their businesses because of these tariffs.

President Trump promised during his campaign, and I’m quoting here, “to lower the price of everything,” but instead of doing something to lower costs, what he’s doing now, what his administration is doing, is planning to add a 25% tariff tax to countless imports from Canada and Mexico.

And they’ve already added a 10% tariff tax on goods coming in from China.

And again, while this was delayed at the last minute, this would raise costs for everything from groceries to housing to energy.

It would proportionately hit lower-income families.

I’m glad for the delay. I don’t want people to misunderstand that, but how is a business or a family supposed to plan when they don’t know if important costs like gas or heating or groceries are going to spike any day?

I want to finish by reading a quote here.

The quote says, “Tariffs are inflationary, and would strengthen the dollar—hardly a good starting point for U.S. Industrial renaissance.”

That’s a quote from Scott Bessent, the new Treasury Secretary who just got confirmed, when he wrote to his investors just a year ago.

I happen to agree with what he said then, but unfortunately the administration he just joined seems to be willing to risk more inflation.

These sweeping tariff tax increases would hurt American families, businesses and workers.

I’m glad the taxes on goods from Canada and Mexico were delayed.

I hope this administration can provide everyone with certainty that they won’t go into effect next month.

Thank you, Mr. President. I yield to my colleague from Vermont.

Last week, Shaheen led the New Hampshire Congressional Delegation in sending a letter to the White House urging him not to impose tariffs on Canada which are expected to cost the average Granite Stater $1,100 per year.

Earlier this year, Shaheen introduced new legislation with U.S. Senators Ron Wyden (D-OR) and Tim Kaine (D-VA) to shield American businesses and consumers from rising prices imposed by tariffs on imported goods into the United States. The Senators’ legislation would keep costs down for imported goods by limiting the authority of the International Emergency Economic Powers Act (IEEPA)—which allows a President to immediately place unlimited tariffs after declaring a national emergency—while preserving IEEPA’s use for sanctions and other tools.

After the November election, a multitude of business leaders verified that, if the President placed sweeping tariffs as promised, they’d be forced to raise prices on consumers. The CEO of Best Buy said, “the vast majority of that tariff will probably be passed on to the consumer as a price increase.” The CFO of Walmart said, “there will probably be cases where prices will go up for consumers.” The CEO of Columbia Sportswear said, “we’re set to raise prices” and “it’s going to be very, very difficult to keep products affordable.” The CEO of AutoZone said, “if we get tariffs, we will pass those tariff costs back to the consumer.” The President of a Texas-based Lipow Oil Associates said, “The prices at the pump are going to go up.”

MIL OSI USA News –

February 5, 2025

MIL-OSI Economics: Samsung Members Connect 2025: Samsung Electronics Holds Exclusive Event for Global Members To Experience Galaxy S25 Series Firsthand

Source: Samsung

On January 21, Samsung Electronics invited 90 Samsung Members Stars from 19 countries to San Jose, California, for the Samsung Members Connect event. Samsung Members is a Galaxy app that provides product information, exclusive benefits and a platform for users to interact. Meanwhile, Samsung Members Stars are community leaders who create high-quality content and actively engage in discussions within the app.

For this exclusive event, Samsung designed various programs to ensure that participating Members could share their firsthand experiences of the new Galaxy products with the wider community. These Members were among the first to explore the upgraded Galaxy AI features and collaborated on exclusive missions with #TeamGalaxy, Samsung’s dedicated Galaxy influencers. Their real-time updates allowed Members in different regions to experience the excitement of the event as it happened.

Samsung Newsroom highlighted vibrant moments from Samsung Members Connect.

Members Orientation: A Hub Connecting Samsung Members Around the World
At the “Members Orientation,” Members from different countries gathered to share their unique experiences and journeys within the community. Exchanging insights on how they effectively utilize Galaxy devices and engage with others in their respective regions, Members from diverse cultural and social backgrounds connected through meaningful discussions and fostered deeper connections within the network.

▲ Members present their contributions during the networking session.

Galaxy AI Evolves With Greater Innovation
At Galaxy Unpacked 2025, Members had the exclusive opportunity to get a sneak peek at the newly unveiled Galaxy S25 series — powered by an enhanced Galaxy AI.

“It is truly an honor to participate in a global event hosted by Samsung. I was particularly impressed by how effortlessly I could summarize YouTube videos with just a single tap,” said Hyun-seo Chae, a Members from South Korea. “The ongoing evolution of Galaxy AI always exceeds expectations, and its groundbreaking advancements demonstrate limitless opportunities and possibilities.”

▲ Members experience the Galaxy S25 series at the Experience Zone.

Following Galaxy Unpacked 2025, Sung Chang, Executive Vice President of Marketing Team, and Minseok Kang, Head of Smartphone Product Planning Team, from Mobile eXperience (MX) Business at Samsung Electronics held a Q&A session to discuss key features of the Galaxy S25 series.

▲ (From left) Sung Chang and Minseok Kang from Samsung Electronics

Members Workshop: Samsung Members Stars and #TeamGalaxy Unite Through Galaxy
For the first time, Samsung Members Connect featured a unique collaboration between Members and #TeamGalaxy. These workshops provided Members with an opportunity to develop key influencer skills, helping them more effectively share their experiences using Galaxy devices with the global community.

During the workshop, Members and #TeamGalaxy fostered mutual growth by exchanging their strengths — deep Galaxy knowledge and content creation expertise, respectively. They actively discussed content themes and explored new features of the Galaxy S25 series to incorporate into their projects for the following day. Through these collaborative missions, Members in different countries had the opportunity to indirectly experience the Galaxy S25 series for two days.

“Engaging with #TeamGalaxy has allowed me to take my content to the next level and expand the reach of Galaxy-related content,” said Sebastián Sebas, a Members from Colombia.

▲ Members and #TeamGalaxy influencers collaborate on a filming mission.

An Epic Tour of San Francisco With Next-Level Galaxy AI
On the final day of the event, Members embarked on a tour of San Francisco with the Galaxy S25 series. Participants visited iconic landmarks in San Francisco and completed individual and group missions that showcased the advanced features of Galaxy AI. Using the upgraded AI capabilities of the Galaxy S25 series, Members captured dynamic moments, experimented with various camera modes, and creatively applied Galaxy AI to produce high-quality content for the larger community.

After an exciting day of exploration, the event concluded with a gala dinner and a Mission Awards ceremony — marking the successful completion of the four-day journey.

▲ The results of the collaborative Member missions

Samsung Members Connect provided a unique opportunity to be among the first to experience the Galaxy S25 series, a product line showcasing a new AI paradigm that will seamlessly integrate into users’ daily lives. Through various programs, the diverse Members exchanged their experiences and shared the excitement of Galaxy Unpacked 2025 to the wider community. Samsung looks forward to seeing how Galaxy AI will continue to drive endless innovation, enhance the daily lives of users and shape the future ahead.

MIL OSI Economics –

February 5, 2025

MIL-OSI USA: Kennedy, Booker introduce bill to give more small businesses access to disaster loans

US Senate News:

Source: United States Senator John Kennedy (Louisiana)

WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Appropriations and Banking Committees, today joined Sen. Cory Booker (D-N.J.) in introducing the Small Business Disaster Damage Fairness Act of 2025. The bill would allow borrowers to get a Small Business Administration (SBA) disaster assistance loan for up to $50,000, rather than the current $14,000, without pledging collateral.

“Too many small business owners can’t put up collateral for a loan when disaster strikes. As a result, they can’t re-open their doors. My bill would make sure small businesses can get back to serving their communities after disasters hit,” said Kennedy.

The SBA’s Disaster Loan Program is designed to help homeowners, renters, businesses and nonprofits repair, rebuild and recover from disaster-related losses. In 2024, there were 27 weather-related disasters that caused at least $1 billion in damage.

“New Jerseyans are unfortunately too familiar with the impacts of extreme weather, from hurricanes to major flooding events. The last thing homeowners and small businesses should need to worry about is how they will access the funding they need to rebuild after a storm. This bill will help ensure small businesses everywhere have the support they need to recover in the wake of a disaster,” said Booker.

The bill also codifies the Government Accountability Office (GAO)’s recommendation to distinguish between rural and urban communities for outreach and instructs the GAO to further report the Disaster Loan Program’s default rate.

Sen. Mazie Hirono (D-Hawaii) cosponsored the bill.

The full bill text is available here.

MIL OSI USA News –

February 5, 2025

MIL-OSI USA: Jefferson, U.S. Economic Outlook and Monetary Policy

Source: US State of New York Federal Reserve

Thank you, Professor Smith. It is an honor to be speaking to you today here at Lafayette College.1 I am glad to have the opportunity to return to such a historically important place as Easton, Pennsylvania, and the Lehigh Valley. This area was part of this country’s colonial beginnings, it was instrumental in the rising of the industrial age, and, as the home to Crayola, it very literally played a role in coloring how we see the world. Today, this region is leading the way forward with its many outstanding institutions of higher education, very prominently including, of course, Lafayette College.

Today, I would like to take this opportunity to share with you my outlook for the U.S. economy and my views of appropriate monetary policy. This is a useful time to do that, as my colleagues and I on the Federal Open Market Committee (FOMC), the Federal Reserve’s primary monetary policymaking body, held our first meeting of 2025 just last week.
Overall, the U.S. economy is starting the year in a good position. I expect inflation’s slow descent to continue, and I anticipate that economic growth and labor market conditions will remain solid. I have learned, however, that it is wise to be humble about my projections. There is always a great deal of uncertainty around any economic forecast, and currently we face additional uncertainties about the exact shape of government policies, as well as their economic implications.
Last week, my FOMC colleagues and I discussed the latest economic developments and reviewed data that arrived since our previous policy meeting in December. At the conclusion of that meeting, I voted in support of the Committee’s decision to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. This decision was made in support of our goals to achieve maximum employment and inflation at the rate of 2 percent over the longer run. I remain focused on setting policy to achieve the dual-mandate goals given to us by Congress: maximum employment and stable prices. Sound monetary policy and positive supply-side developments have contributed to the achievement of sustained economic growth in recent years, the return of low unemployment, and inflation moving sustainably toward our 2 percent objective. I remain committed to returning inflation to our target while sustaining the solid labor market. Now is an appropriate time to assess the path forward for the economy. I am happy to be here today to share my views with you.
Economic ActivityThe U.S. economy appears to be maintaining its momentum after growing at a solid pace last year. Last year’s growth was notable because many private forecasters in 2023 projected a significant downturn sometime in 2024.2 However, data over the past year painted a very different picture. GDP grew 2.3 percent in the fourth quarter of 2024, according to last week’s data release.3 As you can see in figure 1, that extends a stretch of solid quarterly growth over the past couple of years. Shortly, when I discuss the labor market, I will say more related to the large swing in GDP growth in 2020 that stands out in this chart. For all of 2024, the economy grew 2.5 percent, which is a modest slowing from the 3.2 percent growth in 2023. The economy has been benefiting from positive supply developments, including more workers joining the labor force and higher labor productivity.
The resilience of American consumers is the driving force behind the solid economic growth seen in recent quarters. Household spending, adjusted for inflation, grew 3.2 percent in 2024, slightly stronger than in 2023. The consumer spending data we have received recently have surprised me to the upside. As you can see in figure 2, personal consumption increased at a faster pace each quarter last year. Nominal retail sales rose briskly in the second half of last year. Private-sector data are consistent with GDP figures. According to private surveys of businesses, activity in the services sector, which accounts for about two-thirds of all consumer spending, has been on a general upward trajectory since mid-2020.4
Elsewhere in the economy, growth has been less robust. Residential investment has been fairly flat over the past three quarters, and growth of business fixed investment cooled last year from its strong 2023 pace. Much of the equipment investment that did take place came from imports. Indeed, domestic manufacturing industrial production was flat last year. Overall, I see the economy as continuing to grow at a healthy pace this year, though I anticipate growth to be slightly lower than what we observed in 2024. Households and firms face an uncertain environment, and that tends to lower consumer spending and business investment. If consumer spending continues to grow at the same pace as it has in the past two years, however, that could cause me to revise up my outlook for overall economic growth.
Labor MarketTurning to employment, I see the labor market as being in a solid position, with conditions broadly returning to balance after a period of being overheated. It’s helpful to step back and look at the labor market’s path over the past five years. Looking at figure 3, you can see that the unemployment rate surged in early 2020, peaking at 14.8 percent in April 2020, when the COVID-19 pandemic first took hold and a wide swath of the global economy was shutdown. The unemployment rate subsequently fell swiftly as the economy recovered. By April 2023, it touched 3.4 percent, a half-century low. At that point, many employers reported that they were struggling to fill openings. Then, over the latter part of 2023 and early 2024, the unemployment rate rose nearly a percentage point, an unusual pattern outside of a recession. As a policymaker, I took note of this rise when considering our dual-mandate objectives. Now, I have also taken note that the unemployment rate has effectively held steady since the middle of last year. I view that as a sign that downside risks in the labor market have abated.
The latest jobs report showed that the unemployment rate was 4.1 percent in December, the same reading as in June 2024.5 That is low by historical standards and close to estimates of the longer-run rate that is consistent with our employment mandate. In the three months ending in December, payrolls rose by an average of 170,000 jobs a month. While employment growth has eased somewhat from the early part of last year, the steady unemployment rate suggests that payroll gains have been sufficient to absorb new entrants to the labor market. The general moderation in hiring is consistent with other measures showing that the demand for labor has come into better balance with the supply of workers.
Looking at figure 4, you can see that as of November, there were 1.2 job openings for every unemployed person seeking work. That ratio is down from 2.0 in 2022, when the labor market was overheated. Also notice that the current vacancy-to-unemployment ratio is just a little below its value before the pandemic took hold. And while hiring has eased from the pace in 2023, layoffs have not increased. As you can see in figure 5, the number of Americans seeking first-time unemployment benefits has trended at historically low levels for the past three years. Consistent with a moderation in hiring and a steady unemployment rate, workers’ wage gains have slowed from when the labor market was overheated. Still, the pace of increase in average hourly earnings has been healthy, increasing 3.9 percent during the 12 months ending in December, and shows that, on average, worker pay has grown at a faster rate than the rate of inflation.
Looking broadly across the past several months, I see a labor market that is in solid condition and not a source of significant inflationary pressure. While the downside risks of a rapidly weakening labor market appear to have lessened, I expect some further softening that could cause the unemployment rate to edge just slightly higher this year but stay in a range consistent with recent readings.
InflationThinking about the other component of our dual mandate, inflation has come down a great deal over the past two and a half years but remains somewhat elevated relative to our 2 percent objective. Inflation, as measured by the 12-month change in the personal consumption expenditures (PCE) price index, peaked at 7.2 percent in June 2022. Looking at the blue line in figure 6, you can see that it has since come down to 2.6 percent as of this past December. Economists also pay close attention to core inflation, which excludes often volatile food and energy costs. That core PCE inflation figure, shown by the red dashed line, peaked at 5.6 percent in 2022. By December 2024, it had eased to 2.8 percent. Annualized inflation over the past three months has been closer to our 2 percent objective. As you can see, the path of disinflation has been bumpy. I expect that to continue to be the case.
I find it helpful to look at the components of inflation to better understand underlying trends. Looking at figure 7, core goods inflation, the blue line, is running close to pre-pandemic levels, reflecting a better alignment between supply and demand after pandemic-related distortions. Nonhousing services inflation, the red dashed line, has cooled largely in line with slower wage growth. Housing services inflation, the purple dotted line, remains somewhat elevated, but I expect more progress in that category as the earlier slowing in growth of rents for new tenants feeds through into growth of average rents.6
With supply and demand conditions having moved into better balance, wage growth slowing to a more sustainable pace, and longer-term inflation expectations remaining well anchored, I see a path for inflation to continue its progress toward our longer-run goal. While the easing of overall inflation in recent years has been encouraging, the fact is that it remains above our 2 percent objective. Monthly inflation readings tend to be volatile, consistent with the bumpy path I described, but the 12-month readings have held in a fairly consistent range somewhat above our target over the second half of last year.
Monetary PolicyIn the current environment, I attach a high degree of uncertainty to my projections. As I have already mentioned, there have been notable recent instances where forecasters have been surprised. That said, I see the risks to achieving our employment and inflation goals as being roughly in balance, and I am attentive to the risks to both sides of our mandate. That better balanced position is partly a result of the monetary policy actions over the past few years, which I will review briefly.
As you can see in figure 8, the FOMC responded to elevated inflation by raising the policy rate 5-1/4 percentage points over about 15 months, starting in March 2022, and then holding the rate at that restrictive level for more than a year. This contributed to inflation easing from a 40-year high to near current levels while maintaining a solid labor market. That outcome was historically unusual but greatly welcomed. By September of last year, I had growing confidence that with an appropriate recalibration of our policy stance, strength in the labor market could be maintained in a context of moderate economic growth and inflation moving sustainably down to 2 percent. The FOMC reduced the federal funds rate by a full percentage point over the course of our final three meetings last year. As a result of those actions, our policy stance is now significantly less restrictive than it was when we began lowering the federal funds rate. Given current economic conditions—specifically, inflation that remains modestly above our target and a labor market that is solid—and my projections of future economic conditions, I voted last week to maintain our current policy stance. As long as the economy and labor market remain strong, I see it as appropriate for the Committee to be cautious in making further adjustments.
Over the medium term, I continue to see a gradual reduction in the level of monetary policy restraint placed on the economy as we move toward a more neutral stance as the most likely outcome. That said, I do not think we need to be in a hurry to change our stance. In considering additional adjustments to the federal funds rate, I will carefully assess incoming data, the evolving outlook, and the balance of risks. As is always the case, monetary policy is not on a preset course. To that end, I could envision a range of scenarios for future policy. For example, if the economy remains strong and inflation does not continue to move sustainably toward 2 percent, we can maintain policy restraint for longer.
Alternatively, if the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, it may be appropriate to reduce the policy rate more quickly. Our current stance of policy is well positioned to deal with the risks and uncertainties that we face in pursuing both sides of our dual mandate.
As I conclude, I want to assure you that I am mindful that monetary policy decisions affect communities, families, and businesses across the country. I highly value opportunities to visit places like Lafayette College and Easton to share my views, hear from you, and see how the economy is experienced firsthand in your community. I remain fully committed to supporting maximum employment and bringing inflation sustainably to our 2 percent goal. Our success in delivering on these goals matters to all Americans.
Thank you.

1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board or the Federal Open Market Committee. Return to text
2. See Harriet Torry and Anthony DeBarros (2023), “A Recession Is No Longer the Consensus,” Wall Street Journal, October 15. Return to text
3. See Bureau of Economic Analysis (2025), “Gross Domestic Product, 4th Quarter and Year 2024 (Advance Estimate) (PDF),” news release, January 30. Return to text
4. See the December 2024 Services ISM Report on Business, which is available on the Institute for Supply Management’s website at https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/services/december. Return to text
5. See Bureau of Labor Statistics (2025), “The Employment Situation—December 2024 (PDF),” news release, January 10. Return to text
6. See Philip N. Jefferson (2024), “U.S. Economic Outlook and Housing Price Dynamics,” speech delivered at the Mortgage Bankers Association’s Secondary and Capital Markets Conference and Expo 2024, New York, May 20. Return to text

MIL OSI USA News –

February 5, 2025

MIL-OSI USA: Booker, DeLauro Introduce Expanded Food Safety Investigation Act

US Senate News:

Source: United States Senator for New Jersey Cory Booker

WASHINGTON, D.C. – U.S. Senator Cory Booker (D-NJ) and U.S. Representative Rosa DeLauro (D-CT-03) introduced the Expanded Food Safety Investigation Act (EFSIA), legislation that would grant the Food and Drug Administration (FDA) the authority to collect microbial samples from concentrated animal feeding operations (CAFOs), also known as factory farms, during outbreaks or when there is a public health need.

Factory farming is at the heart of the spread of bird flu. The reintroduction of this legislation comes as public health experts raise alarms about the ongoing threat of H5N1, avian influenza, as variations continue to mutate, and in addition to persistent foodborne illness risks.

The CDC reports that 1 in 6 Americans suffer from foodborne illnesses annually, resulting in 128,000 hospitalizations and 3,000 deaths. Many of these illnesses stem from bacteria and other microbes originating in animal agriculture. Over 55 percent of foodborne Salmonella cases are linked to animals and animal products. Harmful bacteria from animal production facilities also contaminate fields of produce, further endangering consumers.

Despite these clear threats, public health agencies currently lack the authority to conduct microbial sampling on factory farms, limiting their ability to investigate and prevent outbreaks. Investigators are frequently denied access to farms, obstructing efforts to pinpoint the source of outbreaks and implement safeguards.

“Every year, thousands of Americans fall victim to foodborne illnesses,” said Senator Booker. “Currently, the FDA lacks the jurisdiction to investigate outbreaks and identify the sources of contaminated food stemming from animal agriculture. This bicameral legislation will reduce the prevalence of foodborne diseases by empowering the FDA and other public health agencies to properly respond to and investigate outbreaks when they happen and get contaminated food off our grocery shelves.”

“It is clear that corporate consolidation has made our food system more vulnerable—not only to foodborne illness but also to emerging public health threats like H5N1,” said Representative DeLauro. “This crisis is exacerbated by a weak FDA, which lacks the authority to properly investigate outbreaks and remove contaminated food from the market. Under current law, multinational corporations can obstruct FDA foodborne illness investigations, delaying critical public health interventions. That cannot continue. That is why I am reintroducing the Expanded Food Safety Investigation Act, which will ensure FDA has the power to investigate corporate agribusinesses, respond effectively to public health threats, and protect American consumers.”

“The Expanded Food Safety Act would close a critical gap in our public health safety net by allowing outbreak investigators a chance to trace the source of outbreaks on large animal farms,” said Sarah Sorscher, Director of Regulatory Affairs at Center for Science in the Public Interest. “This common sense safeguard is long overdue and can help provide solutions to stop outbreaks at their source.”

The legislation is endorsed by American Society for the Prevention of Cruelty to Animals (ASPCA), Animal Rights Initiative, Antibiotic Resistance Action Center at The George Washington University, Associated Humane Societies, Center for Biological Diversity, Center for Food Safety, Center for Science in the Public Interest, Ceres Community Project, Chilis on Wheels, Compassionate Action for Animals, Consumer Federation of America, Consumer Reports, Earthjustice, Environmental Working Group, Farm Forward, Farm Sanctuary, Food and Water Watch, Food Animal Concerns Trust, Friends of the Earth, Godspeed Horse Hostel Inc, Government Accountability Project, Iowa Environmental Council, KWT Consulting, Mercy For Animals, National Sustainable Agriculture Coalition, Natural Resources Defense Council, Mercy For Animals, PIRG, San Francisco Bay Physicians for Social Responsibility, Slow Food USA, STOP Foodborne Illness, Strategies for Ethical & Environmental Development (SEED), Texas Humane Legislation Network, Vegan Activist Alliance, and World Animal Protection.

The full text of the bill can be found here.

MIL OSI USA News –

February 5, 2025

MIL-OSI China: Spring Festival boosts travel, consumption

Source: China State Council Information Office 2

People walk past a movie poster at a cinema in Shenyang, northeast China’s Liaoning Province, Feb. 4, 2025. [Photo/Xinhua]
As China wraps up its 8-day Spring Festival holiday celebrating the start of the Year of the Snake, the world’s second-largest economy has witnessed shopping and travel booms ignited by hundreds of millions of Chinese people’s family reunions.
This year’s holiday, from Jan. 28 to Feb. 4, marks the second consecutive year that people in China have experienced an extended public holiday. People flocked to tourist destinations, enjoyed cultural experiences and indulged in holiday shopping.
With a string of holiday-targeted domestic blockbusters bringing numerous moviegoers to cinemas across China, the country’s film industry proved to be one of the biggest winners during this Spring Festival consumption spree.
From Jan. 29 to Feb. 3, the daily box office exceeded 1 billion yuan (nearly 140 million U.S. dollars) for six consecutive days, bringing China’s box office revenue for the 2025 Spring Festival holiday to 8.02 billion yuan, a new record for the same period in the country’s film industry history.
Meanwhile, according to data from the China Film Administration, China’s total box office in 2025, including real-time presales, has surpassed 10 billion yuan, ranking it first globally.
Notably, the films on the top of the box office chart were all domestic productions, with “Ne Zha 2,” the animated sequel to the 2019 hit, earning over 3.8 billion yuan.
While cinema boomed during the holiday, so did travel and leisure activities across China. Many chose to explore the country’s natural beauty and cultural heritage in person.
In China’s top ski destination, Altay Prefecture, northwest China’s Xinjiang Uygur Autonomous Region, the period from Jan. 28 to 31 saw 191,900 visitors, generating 225 million yuan in tourism revenue.
Skiing has definitely become the most popular activity in Altay during the holiday, with a record number of skiers — over 10,000 — visiting the Jiangjunshan ski resort on Feb. 2, marking a 23 percent increase from the previous year.
Situated at 45 to 47 degrees north latitude, Altay enjoys 170 to 180 days of snowfall annually. In mountainous areas, snow depths average 1 to 2 meters. The terrain is ideal for skiing due to vertical drops of over 1,000 meters.
“The resort offers many terrain parks and creative features suitable for all levels, making it a great place for everyone to enjoy and challenge themselves,” said Zhang Zhujun, a snowboarding enthusiast at the resort.
Far to the south, the picturesque Yangshuo County, Guangxi Zhuang Autonomous Region, draws large numbers of domestic and international visitors with its unique natural scenery and rich cultural activities. From Jan. 28 to 30, the county welcomed an estimated 410,600 tourists, generating tourism revenue of 589 million yuan.
Lhasa, the capital city of southwest China’s Xizang Autonomous Region, has also seen a surge in visitors. From Jan. 28 to Feb. 3, the city received 1.95 million tourists, up by 20.6 percent year on year, grossing a total tourism revenue of nearly 1.76 billion yuan, a 14.75 percent year-on-year rise, according to Lhasa’s municipal bureau of culture and tourism.
Travel booking platforms echoed the overall trend, with data from Fliggy, a leading online travel agency, showing a surge in bookings, especially from cities like Shanghai, Beijing and Guangzhou. International travel orders increased significantly, with international cruise bookings up more than sixfold compared to the previous year.
Shanghai Airport Group reported that passenger traffic on Sunday hit a new all-time high of 404,000 people, with Pudong airport seeing 259,000 passengers and Hongqiao airport 145,000.
As the holiday drew to a close, airports and transportation hubs in Shanghai braced for the return of travelers, with heightened coordination of metro, bus and taxi services to ensure smooth transportation, said the group.
On Monday, the China State Railway Group Co., Ltd. reported a historic milestone as the country’s railways transported 16.45 million passengers, marking the highest single-day passenger traffic in the history of the Spring Festival travel rush.
On Tuesday, the last day of the holiday, the national railway system is expected to carry 16.9 million passengers, further highlighting the peak in travel activity as hundreds of millions of people return to their destinations after family reunions.
Consumption was another standout trend, with an increasing number of people seeking to experience China’s rich heritage, motivated by the inscription of the Spring Festival on UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity in December 2024.
According to data from the Ministry of Commerce, sales at major retail and catering enterprises across China during the first four days of the holiday increased by 5.4 percent compared to the same period last year.
Spring Festival has boosted Chinese consumers’ appetite for imported food and drinks, such as lobsters, cherries and wines. “Due to rising demand in the Spring Festival, our company’s import has increased by nearly 50 percent in the past month,” said Yang Xinyu from a Guangzhou-based international supply chain company.
Since January, the customs authority of Guangzhou Baiyun International Airport has handled imported aquatic animals, such as lobsters and mud crabs, with a total value of over 14.3 million yuan, a year-on-year surge of 31.8 percent.
Meituan, one of China’s leading e-commerce platforms for services, reported a staggering 300 percent year-on-year increase in online reservations for Chinese Lunar New Year’s Eve dinners. Additionally, group-buying orders for “intangible cultural heritage”-themed packages have surged by over 12 times since January year on year, reflecting growing consumer interest in cultural experiences.
Experts noted that this holiday season saw a shift in consumer behavior, particularly among younger generations and families. “Young families are increasingly becoming the driving force of consumption, with a trend toward diversified, high-quality and culturally rich experiences,” said Sun Jiashan, an associate researcher from the Central Academy of Culture and Tourism Administration.
Data from Meituan Travel echoed Sun’s observation that young people increasingly chose to celebrate the Spring Festival in smaller cities, immersing themselves in intangible cultural heritage and historical landmarks.
The increase in cultural tourism and consumption, from heritage experiences to blockbuster films, indicates a growing demand for traditional and contemporary cultural activities.
“This trend has also raised higher demands for the supply of cultural and tourism products and services, prompting the introduction of new business models and formats that better align with contemporary cultural consumption patterns,” said Sun, highlighting the potential of China’s consumer market and the economy’s internal driving forces.

MIL OSI China News –

February 5, 2025

MIL-OSI China: China announces export controls on items related to tungsten, tellurium, bismuth, molybdenum, indium

Source: China State Council Information Office

China on Tuesday announced export controls on items related to tungsten, tellurium, bismuth, molybdenum and indium, according to a statement jointly issued by the Ministry of Commerce (MOC) and the General Administration of Customs.

The policy comes into effect on Tuesday, according to the statement.

In response to media inquiries, an MOC spokesperson said the move is a common international practice.

As a major global producer and exporter of tungsten and other items, China has long been committed to fulfilling non-proliferation and other international obligations, and imposed export controls on specific items according to laws and based on the need to safeguard national security and interests, the spokesperson said.

The decision to include these items on the export control list reflects China’s holistic approach to balancing development and security, according to the spokesperson.

This move not only serves to better protect China’s national security and interests, but also enables the country to better fulfill non-proliferation and other international obligations, the spokesperson said, adding that it also safeguards the security and stability of global industrial and supply chains.

Exports that comply with relevant regulations will be permitted, according to the spokesperson.

MIL OSI China News –

February 5, 2025

MIL-OSI: Landmark Bancorp, Inc. Announces 6.3% Increase in Net Earnings for the Year Ended December 31, 2024, and Fourth Quarter Earnings Per Share of $0.57. Declares Cash Dividend of $0.21 per Share

Source: GlobeNewswire (MIL-OSI)

Manhattan, KS, Feb. 04, 2025 (GLOBE NEWSWIRE) — Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.57 for the three months ended December 31, 2024, compared to $0.68 per share in the third quarter of 2024 and $0.46 per share in the same quarter last year. Net income for the fourth quarter totaled $3.3 million, compared to $2.6 million in the fourth quarter of 2023 and $3.9 million in the prior quarter. For the three months ended December 31, 2024, the return on average assets was 0.83%, the return on average equity was 9.54% and the efficiency ratio was 70.0%.

For the year ended December 31, 2024, diluted earnings per share totaled $2.26 compared to $2.13 during 2023. Net earnings for 2024 totaled $13.0 million, compared to $12.2 million in 2023, or an increase of 6.3%. For the year ended December 31, 2024, the return on average assets was 0.83%, the return on average equity was 10.01% and the efficiency ratio was 69.1%.

2024 Performance Highlights

	●	Fourth quarter loan growth totaled $50.5 million or an annualized increase of 20.1% over the prior quarter.
	●	For the year, gross loans grew $103.7 million or 10.9%.
	●	Net interest margin improved 21 basis points to 3.51% compared to 3.30% in prior quarter.
	●	Deposits increased $53.3 million, or 16.6% annualized, from the prior quarter.
	●	Total borrowings decreased $34.7 million in the fourth quarter.
	●	A pre-tax loss of $1.0 million was realized in the fourth quarter to reposition a portion of the investment portfolio.
	●	Credit quality remained good with net charge-offs totaling $219,000 in the fourth quarter.

In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, commented, “During 2024, we experienced strong loan demand, especially for residential mortgages and commercial real estate loans. In the fourth quarter 2024, we saw strong growth in virtually all loan categories, with total gross loans increasing by $51 million or 20% (annualized). Total deposits also increased in the fourth quarter by more than $53 million, mostly due to seasonal growth in money market and interest checking accounts. The increase in deposits coupled with investment securities sales and maturities this quarter helped fund loan growth and reduce expensive short-term borrowings. For the year, net interest income grew 5.6% over the previous year while in the fourth quarter 2024 our net interest margin improved to 3.51%. Strategic investments in our people and product offerings resulted in higher non-interest expenses, particularly in the fourth quarter. Credit quality remained solid overall.”

Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid March 5, 2025, to common stockholders of record as of the close of business on February 19, 2025. On December 16, 2024, the Company issued a 5% stock dividend to common stockholders, representing the 24^th consecutive year that a stock dividend has been paid.

Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Wednesday, February 5, 2025. Investors may participate via telephone by dialing (833) 470-1428 and using access code 296482. A replay of the call will be available through February 12, 2025, by dialing (866) 813-9403 and using access code 817329.

Net Interest Income

Net interest income in the fourth quarter of 2024 amounted to $12.4 million representing an increase of $795,000, or 6.9%, compared to the previous quarter. The increase in net interest income was due mainly to lower interest expense on deposits and other borrowed funds. The net interest margin increased to 3.51% during the fourth quarter from 3.30% during the prior quarter. Compared to the previous quarter, interest income on loans increased $22,000 to $16.0 million due to higher average balances but partially offset by lower yields on loans. Average loan balances increased $24.5 million while the average tax-equivalent yield on the loan portfolio decreased 15 basis points to 6.28%. Interest on investment securities declined slightly due to lower balances while partially offset by higher earning rates. Compared to the third quarter 2024, interest on deposits decreased $480,000, or 8.2% mainly due to lower rates, while interest on other borrowed funds declined by $363,000, due to lower rates and balances. The average rate on interest-bearing deposits decreased 23 basis points to 2.25% while the average rate on other borrowed funds decreased 51 basis points to 5.10% in the fourth quarter.

Non-Interest Income

Non-interest income totaled $3.4 million for the fourth quarter of 2024, a decrease of $882,000 from the previous quarter. The decrease in non-interest income during the fourth quarter of 2024 was primarily due to a $1.0 million loss on the sales of lower yielding investment securities mentioned above, while the third quarter of 2024 did not include any sales of investment securities. Additionally, lower sales of residential mortgages this quarter resulted in a decline of $182,000 in gains on sales of these mortgages. The decline in other non-interest income of $221,000 this quarter compared to the prior quarter resulted from sales of premises, equipment and foreclosed assets that did not re-occur in the current quarter. Partially offsetting those declines was an increase of $722,000 in bank owned life insurance income.

Non-Interest Expense

During the fourth quarter of 2024, non-interest expense totaled $11.9 million, an increase of $1.3 million compared to the prior quarter. The increase in non-interest expense was primarily due to increases of $470,000 in professional fees and $461,000 in compensation and benefits. The increase in professional fees this quarter was primarily due to higher consulting costs on several initiatives. The increase in compensation and benefits was attributable to an increase in employees and higher incentive compensation costs.

Income Tax Expense (Benefit)

Landmark recorded an income tax benefit of $886,000 in the fourth quarter of 2024 compared to income tax expense of $867,000 in the prior quarter. The effective tax rate was (37.0%) in the fourth quarter of 2024 compared to 18.1% in the third quarter of 2024. The fourth quarter of 2024 included the recognition of $1.0 million of previously unrecognized tax benefits, which reduced the effective tax rate.

Balance Sheet Highlights

As of December 31, 2024, gross loans totaled $1.1 billion, an increase of $50.5 million, or 20.1% annualized since September 30, 2024. During the quarter, loan growth was primarily comprised of commercial real estate (growth of $21.1 million), commercial (growth of $10.7 million), agriculture (growth of $8.6 million) and one-to-four family residential real estate (growth of $7.8 million) loans. Investment securities decreased $38.5 million during the fourth quarter of 2024 and included sales of $36.0 million in low-rate U.S. treasury securities offset by purchases of $18.0 million in market rate U.S. treasury securities. Pre-tax unrealized net losses on the investment securities portfolio increased from $13.3 million at September 30, 2024 to $20.9 million at December 31, 2024 mainly due to higher market rates for these securities at year end.

Period end deposit balances increased $53.3 million to $1.3 billion at December 31, 2024. The increase in deposits was mainly driven by an increase in money market and checking (increase of $71.3 million) but partially offset by declines in certificates of deposit (decrease of $9.2 million) and non-interest-bearing demand deposits (decrease of $8.6 million). The increase in money market and checking accounts was mainly driven by seasonal growth in public fund deposit account balances. Total borrowings decreased $34.7 million during the fourth quarter 2024. At December 31, 2024, the loan to deposits ratio was 78.2% compared to 77.6% in the prior quarter.

Stockholders’ equity decreased to $136.2 million (book value of $23.59 per share) as of December 31, 2024, from $139.7 million (book value of $24.18 per share) as of September 30, 2024. The decrease in stockholders’ equity was due to an increase in accumulated other comprehensive losses as the unrealized net losses on investments securities increased during the fourth quarter. The ratio of equity to total assets decreased to 8.65% on December 31, 2024, from 8.93% on September 30, 2024.

The allowance for credit losses totaled $12.8 million, or 1.22% of total gross loans on December 31, 2024, compared to $11.5 million, or 1.15% of total gross loans on September 30, 2024. Net loan charge-offs totaled $219,000 in the fourth quarter of 2024, compared to $9,000 during the third quarter of 2024. A provision for credit losses for loans of $1.5 million was recorded in the fourth quarter of 2024 compared to $650,000 in the third quarter of 2024.

Non-performing loans totaled $13.1 million, or 1.25% of gross loans at December 31, 2024 compared to $13.4 million, or 1.34% of gross loans at September 30, 2024. Loans 30-89 days delinquent declined to $6.2 million, or 0.59% of gross loans, as of December 31, 2024, compared to $7.3 million, or 0.73% of gross loans, as of September 30, 2024.

About Landmark

Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 29 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

Contact:
Mark A. Herpich
Chief Financial Officer
(785) 565-2000

Special Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, national and international economies, including the effects of changing inflationary pressures and supply chain constraints on such economies; (ii) changes in state and federal laws, regulations and governmental policies concerning banking, securities, consumer protection, insurance, monetary, trade and tax matters, including changes in interpretation or prioritization; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) changes and uncertainty in benchmark interest rates, including the timing of additional rate changes, if any, by the Federal Reserve; (x) the economic effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (xi) the loss of key executives or employees; (xii) changes in consumer spending; (xiii) integration of acquired businesses; (xiv) unexpected outcomes of existing or new litigation; (xv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xvi) the economic impact of past and any future terrorist attacks, acts of war, including the current Israeli-Palestinian conflict and the conflict in Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvii) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xviii) fluctuations in the value of securities held in our securities portfolio; (xix) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xx) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xxi) the level of non-performing assets on our balance sheets; (xxii) the ability to raise additional capital; (xxiii) cyber-attacks; (xxiv) declines in real estate values; (xxv) the effects of fraud on the part of our employees, customers, vendors or counterparties; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2024			2024			2024			2024			2023
Assets
Cash and cash equivalents	$	20,275		$	21,211		$	23,889		$	16,468		$	27,101
Interest-bearing deposits at other banks		4,110			4,363			4,881			4,920			4,918
Investment securities available-for-sale, at fair value:
U.S. treasury securities		64,458			83,753			89,325			93,683			95,667
Municipal obligations, tax exempt		107,128			112,126			114,047			118,445			120,623
Municipal obligations, taxable		71,715			75,129			74,588			75,371			79,083
Agency mortgage-backed securities		129,211			140,004			142,499			149,777			157,396
Total investment securities available-for-sale		372,512			411,012			420,459			437,276			452,769
Investment securities held-to-maturity		3,672			3,643			3,613			3,584			3,555
Bank stocks, at cost		6,618			7,894			9,647			7,850			8,123
Loans:
One-to-four family residential real estate		352,209			344,380			332,090			312,833			302,544
Construction and land		25,328			23,454			30,480			24,823			21,090
Commercial real estate		345,159			324,016			318,850			323,397			320,962
Commercial		192,325			181,652			178,876			181,945			180,942
Agriculture		100,562			91,986			84,523			86,808			89,680
Municipal		7,091			7,098			6,556			5,690			4,507
Consumer		29,679			29,263			29,200			28,544			28,931
Total gross loans		1,052,353			1,001,849			980,575			964,040			948,656
Net deferred loan (fees) costs and loans in process		(307	)		(63	)		(583	)		(578	)		(429	)
Allowance for credit losses		(12,825	)		(11,544	)		(10,903	)		(10,851	)		(10,608	)
Loans, net		1,039,221			990,242			969,089			952,611			937,619
Loans held for sale, at fair value		3,420			3,250			2,513			2,697			853
Bank owned life insurance		39,056			39,176			38,826			38,578			38,333
Premises and equipment, net		20,220			20,976			20,986			20,696			19,709
Goodwill		32,377			32,377			32,377			32,377			32,377
Other intangible assets, net		2,578			2,729			2,900			3,071			3,241
Mortgage servicing rights		3,061			3,041			2,997			2,977			3,158
Real estate owned, net		167			428			428			428			928
Other assets		26,855			23,309			28,149			29,684			28,988
Total assets	$	1,574,142		$	1,563,651		$	1,560,754		$	1,553,217		$	1,561,672

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing demand		351,595			360,188			360,631			364,386			367,103
Money market and checking		636,963			565,629			546,385			583,315			613,613
Savings		145,514			145,825			150,996			154,000			152,381
Certificates of deposit		194,694			203,860			192,470			191,823			183,154
Total deposits		1,328,766			1,275,502			1,250,482			1,293,524			1,316,251
FHLB and other borrowings		53,046			92,050			131,330			74,716			64,662
Subordinated debentures		21,651			21,651			21,651			21,651			21,651
Repurchase agreements		13,808			9,528			8,745			15,895			12,714
Accrued interest and other liabilities		20,656			25,229			20,292			20,760			19,480
Total liabilities		1,437,927			1,423,960			1,432,500			1,426,546			1,434,758
Stockholders’ equity:
Common stock		58			55			55			55			55
Additional paid-in capital		95,051			89,532			89,469			89,364			89,208
Retained earnings		56,934			60,549			57,774			55,912			54,282
Treasury stock, at cost		–			(396	)		(330	)		(249	)		(75	)
Accumulated other comprehensive loss		(15,828	)		(10,049	)		(18,714	)		(18,411	)		(16,556	)
Total stockholders’ equity		136,215			139,691			128,254			126,671			126,914
Total liabilities and stockholders’ equity	$	1,574,142		$	1,563,651		$	1,560,754		$	1,553,217		$	1,561,672

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)

	Three months ended,								Year ended,
	December 31,			September 30,		December 31,			December 31,			December 31,
(Dollars in thousands, except per share amounts)	2024			2024		2023			2024			2023
Interest income:
Loans	$	15,955		$	15,933	$	14,223		$	61,400		$	51,753
Investment securities:
Taxable		2,210			2,301		2,453			9,298			9,594
Tax-exempt		738			747		761			3,008			3,094
Interest-bearing deposits at banks		49			41		49			193			242
Total interest income		18,952			19,022		17,486			73,899			64,683
Interest expense:
Deposits		5,350			5,830		4,879			22,310			15,254
FHLB and other borrowings		737			1,100		1,203			3,886			4,048
Subordinated debentures		389			416		422			1,635			1,590
Repurchase agreements		77			72		96			344			499
Total interest expense		6,553			7,418		6,600			28,175			21,391
Net interest income		12,399			11,604		10,886			45,724			43,292
Provision for credit losses		1,500			500		50			2,300			349
Net interest income after provision for credit losses		10,899			11,104		10,836			43,424			42,943
Non-interest income:
Fees and service charges		2,710			2,880		2,763			10,742			10,220
Gains on sales of loans, net		522			704		255			2,386			2,269
Bank owned life insurance		976			254		242			1,723			913
Losses on sales of investment securities, net		(1,031	)		–		(1,246	)		(1,031	)		(1,246	)
Other		194			415		240			924			1,074
Total non-interest income		3,371			4,253		2,254			14,744			13,230
Non-interest expense:
Compensation and benefits		6,264			5,803		5,756			23,103			22,681
Occupancy and equipment		1,550			1,429		1,429			5,663			5,565
Data processing		452			464		462			1,889			1,940
Amortization of mortgage servicing rights and other intangibles		240			256		437			1,164			1,844
Professional fees		1,043			573		730			2,912			2,452
Valuation allowance on real estate held for sale		–			–		–			1,108			–
Other		2,325			2,034		1,748			8,240			7,501
Total non-interest expense		11,874			10,559		10,562			44,079			41,983
Earnings before income taxes		2,396			4,798		2,528			14,089			14,190
Income tax expense (benefit)		(886	)		867		(111	)		1,086			1,954
Net earnings	$	3,282		$	3,931	$	2,639		$	13,003		$	12,236

Net earnings per share (1)
Basic	$	0.57		$	0.68	$	0.46		$	2.26		$	2.13
Diluted		0.57			0.68		0.46			2.26			2.13
Dividends per share (1)		0.20			0.20		0.19			0.80			0.76
Shares outstanding at end of period (1)		5,775,198			5,776,282		5,751,475			5,775,198			5,751,475
Weighted average common shares outstanding – basic (1)		5,775,227			5,765,348		5,755,175			5,758,056			5,751,585
Weighted average common shares outstanding – diluted (1)		5,789,764			5,770,514		5,755,175			5,764,282			5,754,840

Tax equivalent net interest income	$	12,574		$	11,777	$	11,017		$	46,428		$	44,040

(1	)	Share and per share values at or for the periods ended September 30, 2024 and December 31, 2024 have been adjusted to give effect to the 5% stock dividend paid during December 2024.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)

	As of or for the three months ended,									As of or for the year ended,
	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share amounts)	2024			2024			2023			2024			2023
Performance ratios:
Return on average assets (1)		0.83	%		1.01	%		0.67	%		0.83	%		0.80	%
Return on average equity (1)		9.54	%		11.95	%		9.39	%		10.01	%		10.70	%
Net interest margin (1)(2)		3.51	%		3.30	%		3.11	%		3.28	%		3.17	%
Effective tax rate		-37.0	%		18.1	%		-4.4	%		7.7	%		13.8	%
Efficiency ratio (3)		70.0	%		66.5	%		71.9	%		69.1	%		71.2	%
Non-interest income to total income (3)		25.9	%		25.5	%		24.3	%		25.3	%		25.1	%

Average balances:
Investment securities	$	409,648		$	428,301		$	463,763		$	432,928		$	486,268
Loans		1,010,153			985,659			934,333			974,293			891,487
Assets		1,568,821			1,562,482			1,555,742			1,558,236			1,535,694
Interest-bearing deposits		944,969			936,218			910,610			938,223			892,373
FHLB and other borrowings		57,507			77,958			84,408			70,226			74,210
Subordinated debentures		21,651			21,651			21,651			21,651			21,651
Repurchase agreements		12,212			10,774			13,785			12,216			18,361
Stockholders’ equity	$	136,933		$	132,271		$	111,560		$	129,944		$	114,339

Average tax equivalent yield/cost (1):
Investment securities		3.03	%		2.99	%		2.86	%		3.00	%		2.76	%
Loans		6.28	%		6.43	%		6.04	%		6.30	%		5.81	%
Total interest-bearing assets		5.34	%		5.38	%		4.97	%		5.28	%		4.71	%
Interest-bearing deposits		2.25	%		2.48	%		2.13	%		2.38	%		1.71	%
FHLB and other borrowings		5.10	%		5.61	%		5.65	%		5.53	%		5.45	%
Subordinated debentures		7.15	%		7.64	%		7.73	%		7.55	%		7.34	%
Repurchase agreements		2.51	%		2.66	%		2.79	%		2.82	%		2.72	%
Total interest-bearing liabilities		2.52	%		2.82	%		2.54	%		2.70	%		2.13	%

Capital ratios:
Equity to total assets		8.65	%		8.93	%		8.13	%
Tangible equity to tangible assets (3)		6.58	%		6.84	%		5.98	%
Book value per share	$	23.59		$	24.18		$	22.07
Tangible book value per share (3)	$	17.53		$	18.11		$	15.87

Rollforward of allowance for credit losses (loans):
Beginning balance	$	11,544		$	10,903		$	10,970		$	10,608		$	8,791
Adoption of CECL		–			–			–			–			1,523
Charge-offs		(246	)		(153	)		(442	)		(659	)		(850	)
Recoveries		27			144			80			476			894
Provision for credit losses for loans		1,500			650			–			2,400			250
Ending balance	$	12,825		$	11,544		$	10,608		$	12,825		$	10,608

Allowance for unfunded loan commitments	$	150		$	300		$	200

Non-performing assets:
Non-accrual loans	$	13,115		$	13,415		$	2,391
Accruing loans over 90 days past due		–			–			–
Real estate owned		167			428			928
Total non-performing assets	$	13,282		$	13,843		$	3,319

Loans 30-89 days delinquent	$	6,201		$	7,301		$	1,582

Other ratios:
Loans to deposits		78.21	%		77.64	%		71.23	%
Loans 30-89 days delinquent and still accruing to gross loans outstanding		0.59	%		0.73	%		0.17	%
Total non-performing loans to gross loans outstanding		1.25	%		1.34	%		0.25	%
Total non-performing assets to total assets		0.84	%		0.89	%		0.21	%
Allowance for credit losses to gross loans outstanding		1.22	%		1.15	%		1.12	%
Allowance for credit losses to total non-performing loans		97.79	%		86.05	%		443.66	%
Net loan charge-offs to average loans (1)		0.09	%		0.00	%		0.15	%		0.03	%		-0.01	%

(1	)	Information is annualized.
(2	)	Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.
(3	)	Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)

	As of or for the three months ended,									As of or for the year ended,
	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share amounts)	2024			2024			2023			2024			2023

Non-GAAP financial ratio reconciliation:
Total non-interest expense	$	11,874		$	10,559		$	10,562		$	44,079		$	41,983
Less: foreclosure and real estate owned expense		(13	)		(23	)		(40	)		(47	)		(61	)
Less: amortization of other intangibles		(151	)		(171	)		(174	)		(663	)		(765	)
Less: valuation allowance on real estate held for sale		–			–			–			(1,108	)		–
Adjusted non-interest expense (A)		11,710			10,365			10,348			42,261			41,157

Net interest income (B)		12,399			11,604			10,886			45,724			43,292

Non-interest income		3,371			4,253			2,254			14,744			13,230
Less: losses on sales of investment securities, net		1,031			–			1,246			1,031			1,246
Less: gains on sales of premises and equipment and foreclosed assets		(62	)		(273	)		–			(326	)		(1	)
Adjusted non-interest income (C)	$	4,340		$	3,980		$	3,500		$	15,449		$	14,475

Efficiency ratio (A/(B+C))		70.0	%		66.5	%		71.9	%		69.1	%		71.2	%
Non-interest income to total income (C/(B+C))		25.9	%		25.5	%		24.3	%		25.3	%		25.1	%

Total stockholders’ equity	$	136,215		$	139,691		$	126,914
Less: goodwill and other intangible assets		(34,955	)		(35,106	)		(35,618	)
Tangible equity (D)	$	101,260		$	104,585		$	91,296

Total assets	$	1,574,142		$	1,563,651		$	1,561,672
Less: goodwill and other intangible assets		(34,955	)		(35,106	)		(35,618	)
Tangible assets (E)	$	1,539,187		$	1,528,545		$	1,526,054

Tangible equity to tangible assets (D/E)		6.58	%		6.84	%		5.98	%

Shares outstanding at end of period (F)		5,775,198			5,776,282			5,751,475

Tangible book value per share (D/F)	$	17.53		$	18.11		$	15.87

The MIL Network –

February 5, 2025

MIL-OSI USA: Senator Marshall, Rep. Van Duyne Reintroduce Legislation to Reduce Overbearing Regulations for America’s Small Businesses

US Senate News:

Source: United States Senator for Kansas Roger Marshall

Washington, D.C. – U.S. Senator Roger Marshall, M.D., and U.S. House Representative Beth Van Duyne (R-TX-24) introduced the bicameral Small Business Regulatory Reduction Act to protect our small businesses from the financial burden of top-down federal regulations.
When Washington, D.C. imposes regulations, it often comes at a significant cost to our locally-owned businesses. In 2022 alone, complying with regulations cost American small businesses an average of $15,133.57 (adjusted for 2024 dollars) per employee on their payroll. The Small Business Regulatory Reduction Act alleviates these costs and requires the Administration to submit an annual report to Congress outlining the impacts of regulations on small businesses.
“I will always stand with Main Street over Wall Street, and remain laser-focused on supporting our nation’s small businesses. That means making it easier for them to do their jobs and keeping the federal government out of the way!” said Senator Marshall. “It’s time to slash the red tape and create a regulatory environment that ensures America’s small businesses, the backbone of our economy, thrive.”
“After Biden-Harris imposed more than $1.7 trillion in regulatory costs and inflicted 20% inflation, America’s small businesses are in desperate need of relief. I’m glad to partner with Senator Marshall to reintroduce the Small Business Regulatory Reduction Act to slash burdensome regulations for our job creators as we work to keep the American Dream alive for the next generation,” said Rep. Van Duyne (R-TX-24).
“The first rule of economic growth is to stop stifling entrepreneurs. Yet, that’s exactly what Washington does to small businesses. Startups and mom-and-pops can’t afford full-time staff dedicated to regulatory compliance they way bigger companies can. Capping regulatory costs for small businesses at current levels is an important step towards better regulatory policy, as are the Small Business Regulatory Reduction Act’s improved transparency requirements.” said Ryan Young, Competitive Enterprise Institute Senior Economist.
“The Small Business Regulatory Reduction Act directs the SBA Administrator to quantify and monitor regulatory costs on small businesses, which is greatly needed as the cumulative costs are overwhelming small firms and undermining their competitiveness. Quantifying these costs on an annual basis and determining whether rules cumulatively exceed a zero-based regulatory budget provide a framework that promotes accountability and sensible regulation. SBE Council strongly supports this legislation, as it will help Congress with critical oversight and help to inform and educate regulators about the need to consider small business impact as they propose and advance their regulatory initiatives.” said Karen Kerrigan, President & CEO, Small Business & Entrepreneurship Council.
“Small businesses often deeply suffer the effects of federal regulations because they have limited resources for compliance. This bill from Senator Roger Marshall and Representative Beth Van Duyne would ensure these burdens are minimized and tallied,” said Nicholas Johns, Senior Policy and Government Affairs Manager, National Taxpayers Union. “National Taxpayers Union applauds this bill because it would prevent the Small Business Administration from hindering companies under their purview and create a government-wide report detailing the regulatory costs on small businesses.”

MIL OSI USA News –

February 5, 2025

MIL-OSI United Kingdom: Birmingham scores transformative investment into new Sports Quarter

Source: United Kingdom – Executive Government & Departments

US company Knighthead have invested £100m to build new Sports Quarter in East Birmingham.

Following on from the Chancellors plans to go ‘further, faster on growth’ US company Knighthead has invested £100m in regeneration project in East Birmingham.
The Sports Quarter project will include a 60,000-seat stadium, sporting facilities and commercial and residential spaces, creating 8,400 new jobs and driving further investment.
Announcement is the latest in a series of job-boosting investments across the country showing the Plan for Change is working.

US company Knighthead has invested £100 million into East Birmingham, showing how the Government’s Plan for Change is boosting jobs and opportunities in the West Midlands.

The new site is estimated to create 8,400 new jobs annually in Birmingham while also supporting the wider city and West Midlands. The investment will pave the way for a new 60,000-seater stadium alongside a sports campus of training facilities, a new academy, and community pitches. Beyond sport, the campus plans also include leisure, commercial, and residential development.

Business Secretary Jonathan Reynolds will visit the site and learn about how the new Sports Quarter and surrounding area is projected to provide £370 million in growth each year.

Securing investment is central to the government’s mission to deliver economic growth which will create jobs, improve living standards, and make communities and families across the country better off as part of our Plan for Change.

Business and Trade Secretary Jonathan Reynolds said:

The West Midlands is a powerhouse for investment, and this project will not only play a vital role in bringing thousands of new jobs into the area but will put more money into the pockets of the local community here in East Birmingham.

Seeing global investors put billions in the UK economy shows the Plan for Change is working, with more and more companies choosing Britain. This is another vote of confidence in our plans to deliver growth that supports skilled jobs and raises living standards across the country.

This is the latest in a series of investment projects into the West Midlands, as the region continues to be a powerhouse for investment. The West Midlands attracted over 130 Foreign Direct Investment Projects in 2024, creating 7,581 jobs.

Unleashing the full potential of the UK’s cities and regions is a core objective of the government’s Industrial Strategy. Facilitating investments like this is central to achieving this goal.

Secretary of State for Culture, Media and Sport, Lisa Nandy said:

The Birmingham Sports Quarter is an exciting venture that highlights how sport can be an important driver for regeneration and growth.

Across the divisions, our professional football clubs are vital community assets at the heart of towns and cities around the country, so it is fantastic to see investment directly benefiting residents of Birmingham and the wider region.

Investment continues to flow into the UK sports sector on an unprecedented level. The UK is an appealing destination for investors aiming to capitalise on diverse revenue streams and long-term growth prospects.

The commercial attractiveness of the UK sports sector is underpinned by both legacy and heritage and its position at the cutting edge of innovative subsectors such as sports-tech and women’s sports.

The Business Secretary’s visit comes after Birmingham City Football Club’s Chairman Tom Wagner’s meeting with Minister for Investment Baroness Gustafsson OBE at One Goal, the government’s annual sports investment conference. The Department for Business and Trade continues to support transformational institutional investment into UK sport and local communities.

Co-founder of Knighthead & Chairman of Birmingham City Football Club Tom Wagner said:

Birmingham and the West Midlands have huge untapped potential for growth, and we intend to seize that opportunity. With the support of government, the Sports Quarter can be a catalyst for regeneration, transforming the prospects for people in of one of the poorest parts of the UK and crowding in interest and investment from around the globe.

Richard Parker, Mayor of the West Midlands, said:

This investment is a huge vote of confidence in Birmingham and the West Midlands. It was made possible by strong partnerships with Knighthead and others committed to our region’s growth.

We’ve worked to create the perfect conditions to attract investment, and this will bring thousands of jobs, new opportunities, and a major economic boost.

Working with Tom Wagner and Knighthead, we’ll unlock our region’s full potential – delivering the Sports Quarter and lasting change for the region.

The announcement comes after the Chancellor vowed to go further and faster to kickstart economic growth last week, as the government wants to help put more money in people’s pockets.

The Budget in the Autumn fixed the foundations of the UK’s economy by putting in place measures to support economic and fiscal stability and long-term investment in national infrastructure.

Securing investment is central to the government’s mission to deliver economic growth which will create jobs, improve living standards, and make communities and families across the country better off as part of our Plan for Change.

The government’s new modern Industrial Strategy will deliver long-term, sustainable, inclusive growth right across the UK by driving investment into the economy and hardwire stability for investors, giving them the confidence to plan not just for the next year, but for the next 10 years and beyond.

Notes to editors

Today’s announcement comes off the back of Knighthead announcing its £3 billion regeneration project last March and also follows the company’s acquisition of Birmingham City Football Club in 2023.

Published 5 February 2025

MIL OSI United Kingdom –

February 5, 2025

MIL-OSI: Veea Issues Letter to Shareholders

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) — Veea Inc. (NASDAQ: VEEA), a pioneer in edge computing and AI-driven solutions, today issued a Letter to Shareholders from Founder and Chief Executive Officer Allen Salmasi.

Dear Fellow Shareholders,

On the occasion of Veea ringing the Nasdaq Opening Bell on February 5, I want to welcome our shareholders and share our insights with respect to our vision, strategy, and the opportunities that lie ahead.

Connecting the World at the Edge
I am thrilled to share with you that a monumental shift in technology has occurred, one that now directly aligns with our vision of the future dating back to the founding of the company ten years ago. This transformation is the convergence of Edge Computing, Hyperconverged Networks, and the application of Artificial Intelligence (AI) at the very edge that all things connect to the network, commonly referred to as Edge AI.

We have developed a portfolio of fully integrated, scalable, and turnkey wireless and wired communications and computing devices and services – VeeaHub products, VeeaWare, and VeeaCloud – that deliver cloud-to-edge solutions and allow businesses to manage high volumes of data to enable real-time applications and maintain system reliability. Our solutions have been iterated over the last several years to minimize production costs, reduce installation expenses, and deliver scalability with easy integration to third party solutions, resulting in a lower total cost of ownership compared to typical edge computing solutions.

We possess more than 100 exclusively-owned patents covering 26 patent families, and a significant partner ecosystem. Our products have been deployed to enterprises and SMB/SMEs across several countries, providing real-world solutions across various end markets. We are transforming lives from remote villages in Indonesia, where Veea’s mesh network is empowering internet connectivity in health, education, and agriculture, to retailers in Mexico, farms in North America, a campus in Hong Kong, and a 21-acre commercial building complex in Orlando, Florida where our Veea Edge Platform is enabling common indoor and outdoor common area Wi-Fi.

Well Positioned to Support the 5^thIndustrial Revolution
Significant advances in AI technologies are now driving the 5th Industrial Revolution, fundamentally reshaping how we live, work, and interact. Unlike previous industrial revolutions driven by mechanization, electricity, computing, and automation, the 5th Industrial Revolution is characterized by the seamless integration of AI and human intelligence to enhance decision-making, improve productivity, and drive innovation across every sector. This is not just a technological trend; it is a pivotal force shaping the future of industries, economies, and our organization.

AI inferencing is at the heart of this revolution, driving a new business paradigm that demands a fresh approach to technology infrastructure and service delivery. AI inferencing refers to the process where a trained AI model applies its learned knowledge to analyze new, unseen data and generate predictions or decisions based on the patterns it has identified during training; essentially, it’s the “action” of using an AI model to make sense of “new information” and draw conclusions from it. For many enterprise and consumer use cases massive amounts of data must be collected and processed at the edge. Among many of its utilities, this is what Veea Edge Platform does most efficiently.

Veea’s unique implementation of Edge AI brings the power of AI closer to where data is generated—at the “edge” of networks. This means faster decision-making, reduced latency, enhanced security, increased reliability, data privacy and sovereignty, and real-time insights without the dependency on centralized cloud infrastructure. Edge Computing complements this by processing data locally, significantly improving efficiency and reducing bandwidth costs.

Edge Computing is not just a supporting technology—it is the core capability that enables AI inferencing to deliver real-time, context-aware insights to both enterprises and consumers alike. By processing data closer to the source, Edge Computing ensures that AI applications are responsive, resilient, and efficient. This shift requires businesses to adopt new operational models, emphasizing agility, scalability, and decentralized intelligence.

AI-as-a-Service (AIaaS)
At Veea, we are at the forefront of this transformation, leveraging Edge Computing to power our AI-as-a-Service (AIaaS) offerings. Traditional business models are no longer sufficient to support the speed, scale, and complexity required by broadly adopted AI-driven applications. Some believe that AI Agents will eventually replace SaaS solutions.

Hyperconverged Networking (HCN) is the backbone that supports this rapid data processing and AI-driven environment. By integrating computing, storage, and networking into a unified system, HCN enhances scalability, simplifies IT infrastructure, and ensures robust data flow between edge devices and core systems. Veea’s virtualized software environment, supporting cloud-native applications, together with one of the most advanced HCN implementations, positions us very well to lead in the delivery of highly optimized solutions in this new era, creating unparalleled value for our customers and sustainable growth for our shareholders.

Through the seamless integration of Edge AI, Edge Computing, and Hyperconverged Networking, all supported by Veea’s cloud-managed products, we are driving:

– Innovation: Delivering cutting-edge products and services that meet the demands of the widest range of the rapidly evolving digital landscape.

– Operational Efficiency: Reducing costs and improving performance for many industries.

– Growth Opportunities: Expanding into new markets and sectors that are rapidly adopting AI inferencing and edge technologies.

– Shareholder Value: Enhancing our competitive advantage, creating revenue streams, and supporting long-term financial performance.

A Unique Business Model Supported by Technology that Delivers Solutions to Real World Problems
What sets Veea apart in this transformative era is our unique business model as a Managed Service Provider (MSP) that is delivering solutions such i) as 5G fixed wireless access through our VeeaHub edge computing products with AI-driven cybersecurity, and a range of value-added services currently being rolled-out by network operators to SMBs and SME, as one of its highly scalable use cases, and ii) Edge AI inferencing through our innovative AIaaS offering with complete turnkey hardware and software solutions (i.e., full stack). This model allows us to deliver AI-powered applications and insights at scale without requiring the end-users to invest heavily in infrastructure or specialized talent.

Through our AIaaS platform, we provide end-to-end management of AI workloads, from deployment and optimization to continuous monitoring and maintenance. This approach offers several key differentiators:

– Scalability: Clients can easily scale their AI capabilities as their business grows, without the complexities of managing hardware and software.

– Cost Efficiency: By offering AI on a subscription basis, we lower the barriers to entry, making advanced AI accessible to organizations of all sizes.

– Agility: Our managed services enable rapid deployment and iteration, allowing businesses to adapt quickly to changing market demands.

– Expertise: Clients benefit from our deep expertise in AI, edge computing, and hyperconverged networking, ensuring optimal performance and reliability.

AI inferencing supported by Edge AI represents a compelling business model and a significant growth opportunity for several reasons:

– Explosive Market Demand: The global demand for real-time, data-driven decision-making is rising across industries including retail, healthcare, manufacturing, smart buildings, smart cities, and smart farming. Organizations need solutions that process data instantly, making Edge AI inferencing critical.

– Recurring Revenue Streams: The MSP and AIaaS business models enable predictable, recurring revenue through subscription-based offerings. This stabilizes our financial outlook and supports sustainable growth.

– Competitive Advantage: Edge AI allows businesses to differentiate themselves through faster, smarter, and more secure operations. By providing managed AI inferencing services, we help our clients maintain a competitive edge, which in turn strengthens our market position.

– Lower Total Cost of Ownership (TCO): Our managed services reduce the cost and complexity for customers, making it more attractive for businesses to adopt advanced AI without large upfront investments.

– Global Scalability: The decentralized nature of Edge AI allows us to serve clients worldwide, expanding our reach and unlocking new markets without the limitations of traditional centralized data processing.

– Rapid Innovation Cycle: Continuous improvements in AI algorithms, edge devices, and networking technologies create opportunities for us to innovate and offer enhanced services regularly, driving both customer retention and new customer acquisition.

– Portable Software Stack: Our full stack software can run on third-party hardware (i.e., CPU-based or GPU-based servers, Access Points (APs), routers, etc.) with a Linux host that meet our minimum requirements, making our cloud-managed platform hardware agnostic.

In Closing
Our commitment to innovation and excellence, combined with a differentiated business model, not only strengthens our value proposition to customers but also positions us to develop a robust, recurring revenue stream that drives sustainable growth and profitability.

We are committed to investing in these transformative technologies, fostering strategic partnerships, and continuing to lead in innovation. Our goal is to ensure that Veea remains at the forefront of this technological revolution, delivering growth and value to our shareholders.

Thank you for your continued support and trust in our vision. Together, we are shaping the future.

Warm regards,

Allen Salmasi
Founder & Chief Executive Officer

About Veea
Veea Inc. (NASDAQ: VEEA) was formed in 2014 and is headquartered in New York City with a rich history of major innovations in the development of advanced networking, wireless and computing technologies. Veea makes living and working at the edge simpler and more secure. Veea has unified multi-tenant computing, multiaccess multiprotocol communications, edge storage and cybersecurity solutions through fully integrated cloud- and edge-managed products. Veea’s fully integrated turnkey solution offers end-to-end cloud management of devices, applications and services with Zero Trust Network Access (ZTNA), optionally with a highly simplified plug and play 5G-based Secure Access Service Edge (SASE) offering. Veea Edge Platform™ enables direct connections from the wide area optical fiber, cellular and satellite networks to devices on the local area networks created by a VeeaHub® mesh cluster over network-managed Wi-Fi and IoT devices – a unique patented capability called Multiprotocol Private Network Slicing (MPNS) for ISPs to offer subscription-based services for one or a group of endpoints. Veea Developer Portal and development tools provide for rapid development of edge applications including federated learning with pre-trained models for inferencing to cost-effectively enable Edge AI for most enterprise use cases.

Veea was recognized in 2023 by Gartner as a Leading Smart Edge Platform for the innovativeness and capabilities of our Veea Edge Platform™ and a Cool Vendor in Edge Computing in 2021. Veea was named in Market Reports World’s in its research report published in October 2023 as one of the top 10 Edge AI solution providers alongside IBM, Microsoft, Amazon Web Services among others. For more information about Veea and its product offerings, visit veea.com and follow us on LinkedIn.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company’s business strategies, and the risk and uncertainties described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” and the additional risk described in Veea’s Form 10-Q for the fiscal quarter ended September 30, 2024 and any subsequent filings which Veea makes with the U.S. Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

The Equity Group

Devin Sullivan
Managing Director
dsullivan@equityny.com

Conor Rodriguez
Analyst
crodriguez@equityny.com

The MIL Network –

February 5, 2025

MIL-OSI USA: Superseding Indictment Charges Chinese National in Relation to Alleged Plan to Steal Proprietary AI Technology

Source: US State of California

Note: View the superseding indictment here.

A federal grand jury returned a superseding indictment today charging Linwei Ding, also known as Leon Ding, 38, with seven counts of economic espionage and seven counts of theft of trade secrets in connection with an alleged plan to steal from Google LLC (Google) proprietary information related to AI technology.

Ding was initially indicted in March 2024 on four counts of theft of trade secrets. The superseding indictment returned today describes seven categories of trade secrets stolen by Ding and charges Ding with seven counts of economic espionage and seven counts of theft of trade secrets.

According to the superseding indictment, Google hired Ding as a software engineer in 2019. Between approximately May 2022 and May 2023, Ding uploaded more than 1,000 unique files containing Google confidential information from Google’s network to his personal Google Cloud account, including the trade secrets alleged in the superseding indictment.

While Ding was employed by Google, he secretly affiliated himself with two People’s Republic of China (PRC)-based technology companies. Around June 2022, Ding was in discussions to be the Chief Technology Officer for an early-stage technology company based in the PRC. By May 2023, Ding had founded his own technology company focused on AI and machine learning in the PRC and was acting as the company’s CEO.

The superseding indictment alleges that Ding intended to benefit the PRC government by stealing trade secrets from Google. Ding allegedly stole technology relating to the hardware infrastructure and software platform that allows Google’s supercomputing data center to train and serve large AI models. The trade secrets contain detailed information about the architecture and functionality of Google’s Tensor Processing Unit (TPU) chips and systems and Google’s Graphics Processing Unit (GPU) systems, the software that allows the chips to communicate and execute tasks, and the software that orchestrates thousands of chips into a supercomputer capable of training and executing cutting-edge AI workloads. The trade secrets also pertain to Google’s custom-designed SmartNIC, a type of network interface card used to enhance Google’s GPU, high performance, and cloud networking products.

As alleged, Ding circulated a PowerPoint presentation to employees of his technology company citing PRC national policies encouraging the development of the domestic AI industry. He also created a PowerPoint presentation containing an application to a PRC talent program based in Shanghai. The superseding indictment describes how PRC-sponsored talent programs incentivize individuals engaged in research and development outside the PRC to transmit that knowledge and research to the PRC in exchange for salaries, research funds, lab space, or other incentives. Ding’s application for the talent program stated that his company’s product “will help China to have computing power infrastructure capabilities that are on par with the international level.”

If convicted, Ding faces a maximum penalty of 10 years in prison and up to a $250,000 fine for each trade-secret count and 15 years in prison and $5,000,000 fine for each economic-espionage count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

Assistant U.S. Attorneys Casey Boome and Molly K. Priedeman for the Northern District of California and Trial Attorneys Stephen Marzen and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

Today’s action was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states.

A superseding indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –

February 5, 2025

MIL-OSI Australia: Interview with Sabra Lane, AM on ABC Radio

Source: Minister for Trade

Sabra Lane: The US-China trade war is escalating, with Beijing imposing retaliatory tariffs and restrictions on critical mineral exports. Where does Australia stand? Senator Don Farrell is Australia’s Trade and Tourism Minister and Special Minister of State. Minister, thanks for joining the program.

Minister for Trade: Nice to be with you, Sabra.

Sabra Lane: China has announced retaliatory action to Mr. Trump’s tariffs. They’re both Australia’s friends, but only one is an ally. Does the government back Mr Trump?

Minister for Trade: We want to have a cool, calm and collected approach to this issue. We believe that we have a very strong argument to defend free and fair trade, and that’s the argument that we put to the Chinese Government. And at the end of last year, the last of the products that had been subject to those impediments, namely crayfish, were sent back into China. When the opportunity arises, I’ll be putting exactly the same argument to my American counterpart that we support free and fair trade and it’s in the best interests of both our countries to continue to do that.

Sabra Lane: Some say it’s shakedown diplomacy. You argue, and the government says, Australia is prepared, but a slowdown in China could affect Australia. How hard could this be?

Minister for Trade: Well, it’s always possible that higher tariffs on Chinese products going into the United States will have an impact on the Australian economy. As I say, what Australia needs to do is to push issues that are in our national interest. We’re an island. We rely on trade to produce our prosperity. It’s been very successful in recent years. We’ve had record trade. One thing that this government has managed to do is to diversify our trading relationship. So, we now have new free trade agreements with the with the United Kingdom, with India. In fact, in the last few days, India made us a fresh offer to extend our free trade agreement. We’ve negotiated a new free trade agreement with the United Arab Emirates. So, all around the world, we’re looking to diversify our trading relationship so that we’re not simply reliant on one or two countries to provide for our prosperity. We’re looking for a much broader relationship and we’ve been successful in that.

Sabra Lane: Mr. Trump’s choice of Commerce Minister Howard Lutnick has not been confirmed just yet. Have you spoken with him yet or when do you expect to meet with him to discuss trade?

Minister for Trade: No, I haven’t spoken with him yet, Sabra, but I have approached the person who will be his Chief of Staff. We’ve indicated that we are very keen to talk. under their system until you get approved by the Senate, you’re not in a position to discuss with other countries. But we’ve made it very clear, and the message that’s come back from Mr Lutnick is that he is very happy to talk with us as soon as he’s legally able to do that. And I hope to be, if not the first person or first overseas minister to speak with him, to be one of the first. And when we get that opportunity, we will push our argument in our national interests that we believe in free and fair trade. That there is no reason for the American Government to impose tariffs on Australia.

Sabra Lane: We avoided them last time round on steel and aluminium. Are you confident that we can do that again?

Minister for Trade: What I’m confident about, Sabra, is that we will push the issues that are in our national interest. One of the points I’ll be making to Mr Lutnick is that since President Trump was last in the White House, American sales to Australia have virtually doubled. So, free trade has been very good for the American businesses in Australia. Of course, it’s been good for us because we have increased our trade with the United States. But right at the moment, the balance is very much in the United States’ favour. We buy almost twice as much from the United States as we sell to them. So, I pose this question; why would you impose a tariff on a country where you’ve got a surplus? And, of course, that was the argument that former Prime Minister Turnbull used with Mr Trump last time. So, I think we’ve got a very strong argument. In Singapore mid-last year, we signed another trade agreement with the United States, the Indo-Pacific Economic Framework. So, we’ve been building strong relations with the United States over the last few years. And I think we have a very, very good and strong argument. And I want to do, I want to present that argument to the United States and ask for their serious consideration about what further action they might take.

Sabra Lane: We have heard this morning with your Special Minister of State hat on, the group Advance is sending out material right now to voters that the Electoral Commission ruled at the last election was misleading. The group says it’s legal right now because it’s being sent before the writs have been issued. Do our laws need tightening to stop this kind of misleading material being sent all the time?

Minister for Trade: Well, we’ve got laws to deal with the issue of truth in advertising in the electoral context.

Sabra Lane: Well, this is getting through right now.

Minister for Trade: Well, those laws haven’t yet passed. We’ve got legislation before the Parliament that’s coming on this Thursday. They’re trying to put downward pressure on the cost of Australian elections. We want every ordinary Australian to be able to participate in the electoral process. And as you saw earlier in the week, Sabra, there’s massive amounts of money going into the Australian electoral system. We want to stop that.

Sabra Lane: Have you got to deal with the Coalition to get this passed?

Minister for Trade: Well, I’m talking to everybody, Sabra, as I have been for the last couple of years. And I’m hopeful that this Senate, this week will see the merit in putting downward pressure on the amount of money that’s being spent in Australian elections. It’s interesting over the break, President Biden himself warned that we can’t have a situation where the billionaire oligarchs simply determine who gets into the Australian Parliament. Ordinary Australians, people like you and me, Sabra, have to be able to participate in the electoral process without having billionaire sponsors determining who will and won’t get into the Parliament. So, I’m hopeful that all the discussions I’ve had and I’ve, you know, met with all of the serious players in this space and I’m hopeful that the arguments that we’re presenting for putting downward pressure on the cost of Australian elections will be successful.

Sabra Lane: Minister, thanks for joining us this morning.

Minister for Trade: Nice talking with you, Sabra.

Sabra Lane: That’s Don Farrell, the Minister for Trade and Tourism and the Special Minister of State.

MIL OSI News –

February 5, 2025

MIL-OSI Security: Superseding Indictment Charges Chinese National in Relation to Alleged Plan to Steal Proprietary AI Technology

Source: United States Attorneys General 12

Note: View the superseding indictment here.

A federal grand jury returned a superseding indictment today charging Linwei Ding, also known as Leon Ding, 38, with seven counts of economic espionage and seven counts of theft of trade secrets in connection with an alleged plan to steal from Google LLC (Google) proprietary information related to AI technology.

Ding was initially indicted in March 2024 on four counts of theft of trade secrets. The superseding indictment returned today describes seven categories of trade secrets stolen by Ding and charges Ding with seven counts of economic espionage and seven counts of theft of trade secrets.

According to the superseding indictment, Google hired Ding as a software engineer in 2019. Between approximately May 2022 and May 2023, Ding uploaded more than 1,000 unique files containing Google confidential information from Google’s network to his personal Google Cloud account, including the trade secrets alleged in the superseding indictment.

While Ding was employed by Google, he secretly affiliated himself with two People’s Republic of China (PRC)-based technology companies. Around June 2022, Ding was in discussions to be the Chief Technology Officer for an early-stage technology company based in the PRC. By May 2023, Ding had founded his own technology company focused on AI and machine learning in the PRC and was acting as the company’s CEO.

The superseding indictment alleges that Ding intended to benefit the PRC government by stealing trade secrets from Google. Ding allegedly stole technology relating to the hardware infrastructure and software platform that allows Google’s supercomputing data center to train and serve large AI models. The trade secrets contain detailed information about the architecture and functionality of Google’s Tensor Processing Unit (TPU) chips and systems and Google’s Graphics Processing Unit (GPU) systems, the software that allows the chips to communicate and execute tasks, and the software that orchestrates thousands of chips into a supercomputer capable of training and executing cutting-edge AI workloads. The trade secrets also pertain to Google’s custom-designed SmartNIC, a type of network interface card used to enhance Google’s GPU, high performance, and cloud networking products.

As alleged, Ding circulated a PowerPoint presentation to employees of his technology company citing PRC national policies encouraging the development of the domestic AI industry. He also created a PowerPoint presentation containing an application to a PRC talent program based in Shanghai. The superseding indictment describes how PRC-sponsored talent programs incentivize individuals engaged in research and development outside the PRC to transmit that knowledge and research to the PRC in exchange for salaries, research funds, lab space, or other incentives. Ding’s application for the talent program stated that his company’s product “will help China to have computing power infrastructure capabilities that are on par with the international level.”

If convicted, Ding faces a maximum penalty of 10 years in prison and up to a $250,000 fine for each trade-secret count and 15 years in prison and $5,000,000 fine for each economic-espionage count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

Assistant U.S. Attorneys Casey Boome and Molly K. Priedeman for the Northern District of California and Trial Attorneys Stephen Marzen and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

Today’s action was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states.

A superseding indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL Security OSI –

February 5, 2025

MIL-OSI USA: Grassley, Colleagues Reintroduce Bill to Keep AM Radio in New Vehicles

US Senate News:

Source: United States Senator for Iowa Chuck Grassley

WASHINGTON – Sen. Chuck Grassley (R-Iowa) joined Senate Commerce Committee Chairman Ted Cruz (R-Texas) and Sen. Edward J. Markey (D-Mass.) to reintroduce the bipartisan AM Radio for Every Vehicle Act. The legislation would direct the National Highway Traffic Safety Administration (NHTSA) to require automakers to maintain AM broadcast radio in their new vehicles at no additional charge.

“AM radio is the backbone of our emergency alert system, especially for tens of millions of Americans in rural areas. It’s been a part of our daily commutes and road trips for decades. Iowans rely on AM radio to catch up on local news, weather and commodity and livestock markets, as well as to hear competing viewpoints about the important issues of the day. The AM Radio for Every Vehicle Act will protect this critical resource, and I urge my colleagues to support this legislation,” Grassley said.

“During weather disasters or power outages, AM radio is consistently the most reliable form of communication and is critical to keep millions of Texans safe. AM radio has long been a haven for people to express differing viewpoints, allowing free speech and our robust democratic process to flourish for decades. I am honored to once again partner with Sen. Markey on this bipartisan legislation on behalf of our constituents who depend on AM radio and public airwaves for access to news, music, talk, and emergency alerts,” Cruz said.

“As we witness more tragic climate change-induced disasters like the wildfires in Los Angeles, broadcast AM radio continues to be a critical tool for communication. AM radio is a lifeline for people across the country for news, sports, and especially emergency information,” Markey said. “Tens of millions of listeners across the country have made clear that they want AM radio to remain in their vehicles. Our AM Radio for Every Vehicle Act heeds their words and ensures that this essential tool doesn’t get lost on the dial.”

Additional cosponsors are Sens. Tammy Baldwin (D-Wis.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Richard Blumenthal (D-Conn.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Maria Cantwell (D-Wash.), Shelley Moore Capito (R-W.V.), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Josh Hawley (R-Mo.), Maggie Hassan (D-N.H.), Mazie Hirono (D-Hawaii), Jim Justice (R-W.V.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), James Lankford (R-Okla.), Ben Ray Luján (D-N.M.), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Jeff Merkley (D-Ore.), Jerry Moran (R-Kan.), Chris Murphy (D-Conn.), Jack Reed (D-R.I.), Pete Ricketts (R-Neb.), Bernie Sanders (I-Vt.), Rick Scott (R-Fla.), Jeanne Shaheen (D-N.H.), Tim Sheehy (R-Mont.), Tina Smith (D-Minn.), Dan Sullivan (R-Alaska), Ron Wyden (D-Ore.), Todd Young (R-Ind.), John Barrasso (R-Wy.), Jim Banks (R-Ind.), and John Hoeven (R-N.D.).

Read the bill text HERE.

Background:

Grassley and his colleagues previously introduced the AM Radio for Every Vehicle Act during the 118^th Congress. The legislation passed the Senate Commerce Committee in July 2023 and the House Energy and Commerce Committee in September 2024.

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MIL OSI USA News –

February 5, 2025

MIL-OSI Security: Local 98 Member Sentenced for Unlawfully Seeking Money From Union Employer for Hours Not Worked

Source: Office of United States Attorneys

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Gregory Fiocca, 32, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Jeffrey L. Schmehl to two years of probation for unlawfully demanding money as a union representative from a union employer for hours he did not work, in an amount not exceeding $1,000.

On August 19, 2020, following a week where he did little work and was frequently absent, Fiocca received a paycheck that was for substantially less than 40 hours. In response, Fiocca confronted and assaulted a Local 98 member who was the project manager. Fiocca slapped the project manager, choked him, threw him across a desk, spit on him, and threatened to beat him and the owner if they continued to monitor his attendance and performance. Fiocca then unlawfully demanded money from the project manager for hours he did not work.

Fiocca was charged by superseding information and pleaded guilty in September 2024.

“Fiocca, as the nephew of then-Local 98 Business Manager John Dougherty, abused his power and influence and resorted to violence to unlawfully claim wages he did not rightfully earn. That force and intimidation is detrimental to the integrity of hardworking and law-abiding members of Local 98, and such actions cannot be tolerated as business as usual,” said U.S. Attorney Romero. “Many thanks to our law enforcement partners at FBI for their persistence in fighting corruption in Philadelphia and helping to ensure no one is threatened by economic retaliation or physical harm while engaging in honest business practices.”

“Gregory Fiocca exploited his position within the union and resorted to violence in an unlawful attempt to claim wages he did not rightfully earn,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI remains committed to working alongside the U.S. Attorney’s Office to root out corruption and uphold the integrity of our city for the citizens we serve.”

The case was investigated by the FBI and prosecuted by Assistant United States Attorney Jason Grenell and former Assistant United States Attorney Frank Costello.

MIL Security OSI –

February 5, 2025

MIL-OSI USA: Shaheen Joins Young and Colleagues to Introduce Bipartisan Legislation to Help Small Businesses Adopt Digital Tools

US Senate News:

Source: United States Senator for New Hampshire Jeanne Shaheen

(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH), the former Chair and now a senior member of the U.S. Senate Committee on Small Business and Entrepreneurship, joined U.S. Senators Todd Young (R-IN), Jacky Rosen (D-NV) and Ted Budd (R-NC) in introducing bipartisan legislation to help small business owners integrate digital tools into their businesses. The Small Business Technological Advancement Act would clarify that small businesses can utilize the Small Business Administration’s (SBA) 7(a) loan program to finance technology that supports daily operations, including inventory management, product delivery and accounting systems.

“In an increasingly digital world, more and more companies are using technology to modernize operations and compete globally. To ensure our small businesses can compete too, we must cut red tape to allow them to utilize digital tools to help manage and grow their businesses,” said Senator Shaheen. “Our commonsense, bipartisan bill will empower small businesses to use SBA’s 7(a) loans to access new software, digital tools and online work.”

The last few years have seen an accelerated digital transformation among small businesses, pushing the adoption of software for business continuity and customer engagement. The Small Business Technological Advancement Act would help small businesses continue to bridge this technological gap by amending the Small Business Act to clarify that 7(a) loan borrowers can finance business software or cloud computing services for the following:

Facilitating daily operations;
Product or service delivery;
Processing, payment, and tracking of payroll expenses;
Human resources;
Sales and billing functions; and/or
Accounting or tracking of supplies, inventory, records and expenses.

Full legislative text can be found here.

As a former small business owner and now a top member of the Small Business and Entrepreneurship Committee, Shaheen fights for New Hampshire’s—and America’s—small businesses. During her time as Chair of the committee, Shaheen focused on addressing some of the biggest challenges small business owners face, reporting key legislation out of committee that included critical improvements to the State Trade Expansion Program (STEP) and improved access to federal contracting opportunities for small businesses. Shaheen recently introduced the bipartisan Helping Small Businesses THRIVE Act with Senator Bill Cassidy (R-LA) that would direct SBA to create a new program that helps small businesses lock in the cost of commodities, like gasoline or lumber, in order to protect against the future volatile price of energy and other expenses.

MIL OSI USA News –

February 5, 2025

MIL-OSI USA: Gillibrand, Schumer, Blackburn, Fischer, Clarke, Garbarino, Langworthy, and Torres Reintroduce E-bike Safety Bill

US Senate News:

Source: United States Senator for New York Kirsten Gillibrand

Today, U.S. Senators Kirsten Gillibrand, Chuck Schumer (D-NY), Marsha Blackburn (R-TN), and Deb Fischer (R-NE), along with Congressman Ritchie Torres (D-NY), Congressman Andrew Garbarino (R-NY), Congresswoman Yvette D. Clarke (D-NY), and Congressman Nick Langworthy (R-NY), reintroduced the Setting Consumer Standards for Lithium-Ion Batteries Act. The bipartisan bill would require the Consumer Product Safety Commission (CPSC) to publish a final consumer product safety standard for rechargeable lithium-ion batteries used in e-bikes and other micromobility devices to protect against the risk of fires caused by such batteries. The bill is being reintroduced at a time when fires from lithium-ion batteries have become widespread in New York City. The New York City Fire Department (FDNY) reports rechargeable lithium-ion batteries have caused more than 850 fires since 2021, resulting in more than 450 injuries, 34 deaths & damage to hundreds of structures. In 2024, there were 279 e-bike and e-mobility device battery fires in NYC, a dramatic increase from the 44 that occurred in 2020.

“Far too many innocent lives have been lost in New York City and across the country to fires caused by faulty and improperly manufactured lithium-ion batteries used in e-bikes and other micromobility devices,” said U.S. Senator Kirsten Gillibrand. “The Setting Consumer Standards for Lithium-Ion Batteries Act is a commonsense solution that brings us one step closer to stopping preventable fires, and I encourage my congressional colleagues to pass this bipartisan bill and create the first-ever mandatory consumer product safety standard for rechargeable lithium-ion batteries used in micromobility devices.”

“We are in a time where technology is outpacing federal safety action in many ways, moving faster than the measures we need to keep the public safe, and there might be no better example of this dilemma than with the cheap, China-made lithium-ion batteries in e-bikes, e-scooters and other devices,” said U.S. Senator Charles Schumer. “The fires and injuries caused by these batteries have resulted in tremendous loss across New York and federal action is needed to protect consumers and our brave firefighters who are on the front lines of this new paradigm in fire prevention spurred by these unpredictable, and often times, very dangerous batteries—and that’s why we are reintroducing the Setting Consumer Standards for Lithium-Ion Batteries Act to create a consumer product safety standard for rechargeable lithium-ion batteries.”

“Battery fires in e-bikes have caused far too many devastating injuries and deaths,” said U.S. Senator Deb Fischer. “We need effective, sensible safety standards for the batteries in motorized devices like e-bikes and e-scooters. Our bipartisan bill will protect people across America from these preventable tragedies.”

“Since 2021, we’ve seen far too many avoidable deaths and injuries due to unregulated, unsafe lithium-ion batteries in e-bikes, e-scooters, and other mobility devices New Yorkers use to travel throughout the city delivering goods and services, said Rep. Yvette D. Clarke. “I fully support this legislation to improve public safety and ensure safety guidelines and standards to prevent fire risks – protecting our constituents and businesses from injury and loss of life.”

“Unregulated lithium-ion batteries are one of the leading causes of fatal fires in New York, posing a serious threat to both the public and the firefighters who respond to these emergencies,” said Rep. Andrew Garbarino. “As the use of lithium-ion batteries in devices like e-scooters and e-bikes continues to grow, so do the risks. This legislation is a critical step toward preventing these fires and improving public safety.”

“The safety of American consumers must always come first. Rechargeable lithium batteries power so many aspects of our daily lives, but without proper standards, they pose serious risks of fires and explosions,” said Rep. Nicholas Langworthy. “This legislation sets clear safety guidelines to protect families, first responders, and businesses from preventable hazards. I am proud to support this commonsense measure to ensure that these products meet rigorous safety standards before they reach the market.”

“For years, it has been clear that unregulated lithium-ion batteries pose a clear and present threat to the public’s safety, and it’s long past time that we do something about it,” said Rep. Ritchie Torres. “My district specifically is acutely aware of the unmitigated disaster that urban fires pose and the urgent need for stronger safety standards. My colleagues and I fought throughout the last Congress to advance this legislation, and we will continue pushing it toward the finish line in the 119th — no matter the national political scene.”

“Keeping our country safe from the dangers of lithium-ion batteries is incredibly important, because as we have seen time and time again, they present unique safety risks to the public and to first responders,” said NYC Fire Commissioner Robert Tucker. “We’re grateful to our partners in government for bringing back this legislation we know will save lives. We will continue to beat the drum on safe usage and best practices of these devices to help prevent tragedies in the future.”

“I thank Senator Gillibrand, Representative Torres, and their allies for their continued leadership and perseverance on the Setting Consumer Standards for Lithium-Ion Batteries Act,” said Chief Josh Waldo, President and Chair of the Board, the International Association of Fire Chiefs. “Fire departments across the country face numerous challenges when responding to these preventable incidents. We have gone far too long without any impactful changes to ensure the safety of humans around these devices. As we have seen, further injury and property damage is the result of inaction. It is time for Congress to act together and pass this life-saving legislation.”

“Lithium-ion batteries, especially those of inferior quality, can be prone to explosion, thermal runaway, and other hazards. As devices powered by these batteries have become more common, so have the risks associated with them. I applaud Senator Gillibrand and Rep. Torres for introducing this bill, which would require lithium-ion batteries powering certain mobility devices to meet quality and safety standards, thereby reducing the fire risk these devices pose,” said Steven W. Hirsch, Chair, National Volunteer Fire Council.

“Lithium-ion battery fires burn intensely, last longer than most fires, and release toxic fumes, putting fire fighters and the public at risk,” said International Association of Fire Fighters General President Ed Kelly. “The Setting Consumer Standards for Lithium-Ion Batteries Act is an important step toward preventing these fires, protecting our communities, and keeping fire fighters safe. The IAFF thanks Senator Gillibrand for her leadership on this critical issue.”

“Lithium-ion battery safety has rapidly become a top priority for property owners and managers across the country, as we’re on the front lines of making sure that office buildings and other commercial spaces are kept safe,” said Manuel Moreno, Chair and Chief Elected Officer of the Building Owners and Managers Association (BOMA) International, the professional association representing the commercial real estate sector. “This legislation will help protect the safety of millions of people in the nation’s commercial buildings as well as the safety of first responders who have to confront these intense chemical fires. This legislation will save lives.”

“We applaud Senator Kirsten Gillibrand, Representative Richie Torres, and their Congressional colleagues for taking decisive action to address substandard lithium-ion batteries flooding in from overseas and help ensure that everyone can safely use these devices without fear that they may lack necessary safeguards,” said John Horton, Head of North America Public Policy at DoorDash. “DoorDash will continue to work with all stakeholders to help ensure certified safe lithium-ion batteries are used in our communities, but a safety floor must be put in place to keep unsafe batteries from the marketplace to begin with, and this bill does just that.”

“Addressing the dangers posed by uncertified lithium-ion batteries is essential to protecting public safety,” said Kara Kelber, Grubhub’s Director of Federal Affairs. “Grubhub applauds Senator Gillibrand, Senator Schumer, Senator Blackburn and Senator Fischer for their continued leadership on this critical issue. The Setting Consumer Standards for Lithium-Ion Batteries Act shows a strong, bipartisan commitment to tackling this urgent safety concern and keeping unsafe products from infiltrating our streets and communities. We are eager to see the bill pass and ensure safer micromobility options for communities across the country.”

MIL OSI USA News –

February 5, 2025

MIL-OSI Canada: Don’t default to the Rate of Last Resort

[. While most ratepayers choose to sign competitive contracts with one of more than 50 electricity providers in the province’s uniquely competitive market, those who don’t are automatically enrolled on the Rate of Last Resort – the default electricity rate – and likely to pay more for their power.

As part of ongoing efforts to help Albertans save more on their electricity bill, Alberta’s government is launching an advertising campaign to encourage Albertans to explore their electricity options and ensure they know they don’t have to settle for the Rate of Last Resort.

“Albertans shouldn’t pay more on their power bill than they have to. Our government is taking action to ensure they have the tools they need to make informed decisions about their electricity so more of their hard-earned dollars can be used where they’re needed most for them and their families.”

Nathan Neudorf, Minister of Affordability and Utilities

Last year, tens of thousands of households made the switch from the Rate of Last Resort to a competitive contract. The campaign aims to ensure new Albertans and first-time ratepayers still on the Rate of Last Resort know they have choices when it comes to their power bill, and a better electricity option that could save them hundreds of dollars may be available to them.

“Alberta’s competitive electricity market gives consumers choice, and for most Albertans, competitive retail rates are a better choice than the Rate of Last Resort. I encourage everyone to learn about their electricity options and contact the Utilities Consumer Advocate if you need help understanding your utilities.”

Chantelle de Jonge, parliamentary secretary, Affordability and Utilities

The campaign builds on existing consumer awareness initiatives and efforts to lower utility bills and protect ratepayers from volatile price spikes. New regulations came into effect Jan. 1 that require providers to clearly indicate on customers’ utility bills if they are on the Rate of Last Resort and inform them of their competitive retail market options. Every 90 days, the Utilities Consumer Advocate will contact all ratepayers on the Rate of Last Resort, confirm whether they would like to remain on the default rate and encourage them to explore their options.

“Moving to a new place can be overwhelming and expensive, especially those moving from outside the province or country. Alberta’s government is helping ease stress and financial strain by making sure newcomers are informed about their electricity options.”

Yuliia Haletska, case manager – Ukrainian, vulnerable population services, Centre for Newcomers

To protect any Albertans who may not be able to sign a competitive contract from sudden, volatile price spikes, the Rate of Last Resort is set at approximately 12 cents/kWh. The rate is set every two years and can only be changed by a maximum of 10 per cent between two-year terms. Through these changes, Alberta’s government is making the Rate of Last Resort more stable and predictable for Albertans unable to sign a competitive contract. Albertans who are looking for help with their utility bills or are experiencing a dispute with their provider should contact the Utilities Consumer Advocate (UCA).

Quick facts

Albertans have three options when purchasing their electricity: the Rate of Last Resort, a competitive contract for a variable rate, or a competitive contract for a fixed rate.

Competitive retail contracts continue to provide the best, lowest cost options for Albertans.

The Rate of Last Resort is approved by the Alberta Utilities Commission (AUC) and is not determined by the government.
Approximately 26 per cent of residential customers purchase electricity through the Rate of Last Resort.
Approximately 29 per cent of eligible commercial customers and 40 per cent of farm customers purchase electricity through the Rate of Last Resort.

Related information

Utilities Consumer Advocate
Alberta Utilities Commission

Related news

Rewiring Alberta’s electricity system (Dec. 10, 2024)
Introducing the Rate of Last Resort (Sept. 25, 2024)
Power rates slashed in half by new market rules (Sept. 5, 2024)
Power watchdog supports Alberta’s electricity market reforms (Aug. 6, 2024)
Making utility bills more affordable (April 22, 2024)
Making electricity more affordable (April 18, 2024)

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MIL OSI Canada News –

February 5, 2025

MIL-OSI: ChampionX Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Fourth-quarter revenue of $912.0 million
Fourth-quarter net income attributable to ChampionX of $82.8 million
Fourth-quarter adjusted EBITDA of $212.3 million
Fourth-quarter income before income taxes margin of 13.0%
Fourth quarter adjusted EBITDA margin of 23.3%
Fourth-quarter cash from operating activities of $207.3 million and free cash flow of $170.1 million

Full-year net income attributable to ChampionX of $320.3 million
Full-year adjusted EBITDA of $784.7 million
Full-year cash from operating activities of $589.7 million and free cash flow of $460.5 million

THE WOODLANDS, Texas, Feb. 04, 2025 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced fourth quarter of 2024 and full year 2024 results. For the fourth quarter of 2024, revenue was $912.0 million, net income attributable to ChampionX was $82.8 million, and adjusted EBITDA was $212.3 million. Income before income taxes margin was 13.0%, and adjusted EBITDA margin was 23.3%. Cash provided by operating activities was $207.3 million, and free cash flow was $170.1 million.

CEO Commentary

“2024 was a year in which we continued to demonstrate the unique nature of ChampionX’s cash flow resiliency, driven by the strength of our high-margin operating model and capital-light portfolio of businesses. We delivered robust adjusted EBITDA margin expansion and generated strong free cash flow. Our differentiated performance is the direct result of our employees around the world remaining committed to serving our customers well and living our continuous improvement culture daily. I am thankful and humbled to lead such a remarkably dedicated team,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the fourth quarter of 2024, we generated revenue of $912 million, which increased 1% sequentially, driven by seasonal strength in our Production Chemical Technologies business. Sequential growth in Production Chemical Technologies was offset by typical seasonal declines in our Production & Automation Technologies business into the year-end holidays. For the full year 2024, we generated revenue of $3.6 billion, and we grew our North America revenue by 3% year-over-year, driven by particular strength in the Permian basin. We generated net income attributable to ChampionX of $83 million, income before income taxes margin of 13.0%, and delivered adjusted EBITDA of $212 million, representing a 23.3% adjusted EBITDA margin, our highest level as ChampionX, which speaks to the continued productivity and profitability focus of our team. For the full year 2024, we generated net income attributable to ChampionX of $320 million, income before income taxes margin of 12.2%, a 90 basis point increase over the prior year, and delivered adjusted EBITDA of $785 million, representing a 21.6% adjusted EBITDA margin, an increase of 107 basis points year-over-year.

“We once again demonstrated our strong cash flow profile. Cash flow from operating activities was $207 million during the fourth quarter, which represented 250% of net income attributable to ChampionX, and includes a $48 million tax payment deferred from the fourth quarter of 2024 to the first quarter of 2025. We generated robust free cash flow of $170 million during the fourth quarter, converting 80% of our adjusted EBITDA for the period. Cash flow from operating activities was $590 million for the full year 2024, which represented 184% of net income attributable to ChampionX. For the full year 2024, we generated free cash flow of $460 million and achieved 59% adjusted EBITDA to free cash flow conversion. Our balance sheet and financial position remain strong, ending the year with approximately $1.2 billion of liquidity, including $508 million of cash and $675 million of available capacity on our revolving credit facility.

“As we look ahead to 2025, we expect global oil production to grow, and given our differentiated and resilient production-oriented portfolio, we expect another year of positive performance relative to general oil and gas market activity.”

Agreement to be Acquired by SLB

On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions.

ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its fourth quarter and full year 2024 results.

Production Chemical Technologies

Production Chemical Technologies revenue in the fourth quarter of 2024 was $569.7 million, an increase of $10.1 million, or 2%, sequentially, due to seasonally higher volumes in certain international markets and higher volumes in North America.

Segment operating profit was $103.6 million and adjusted segment EBITDA was $133.5 million. Segment operating profit margin was 18.2%, an increase of 259 basis points, sequentially, and adjusted segment EBITDA margin was 23.4%, an increase of 187 basis points, sequentially, in each case due to volumes and product mix.

Production & Automation Technologies

Production & Automation Technologies revenue in the fourth quarter of 2024 was $269.6 million, a decrease of $6.1 million, or 2%, sequentially, due primarily to seasonality in our North American businesses into the year-end holidays.

Revenue from digital products was $62.3 million in the fourth quarter of 2024, an increase of $4.4 million, or 7.5%, compared to $57.9 million in the third quarter of 2024.

Segment operating profit was $39.0 million, and adjusted segment EBITDA was $70.7 million. Segment operating profit margin was 14.5%, an increase of 210 basis points, sequentially, and adjusted segment EBITDA margin was 26.2%, an increase of 100 basis points, sequentially, in each case due to productivity improvements and product mix.

Drilling Technologies

Drilling Technologies revenue in the fourth quarter of 2024 was $51.9 million, an increase of $0.2 million, or flat, sequentially, in-line with flat sequential U.S. rig count activity.

Segment operating profit was $10.7 million, and adjusted segment EBITDA was $12.3 million. Segment operating profit margin was 20.6%, a decrease of 160 basis points, sequentially, and adjusted segment EBITDA margin was 23.7%, a decrease of 112 basis points, sequentially, in each case due to slightly higher operating costs.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the fourth quarter of 2024 was $21.9 million, an increase of $1.4 million, or 7%, sequentially, due primarily to higher product volumes.

Segment operating profit was $2.3 million, and adjusted segment EBITDA was $3.8 million. Segment operating profit margin was 10.5%, as compared to 8.2% in the prior quarter, and adjusted segment EBITDA margin was 17.1%, an increase of 106 basis points, sequentially, in each case due to higher product volumes.

Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

Chosen by a Canadian operator to be their sole supply partner for production chemical programs to support longer asset life for the customer’s project.
Awarded SAGD accounts with a Canadian oil sands operator after a well-executed ChampionX pursuit, trial and transition. This success is expected to lead to additional growth opportunities with the customer in 2025.
Achieved growth with a national oil company in Central Asia through technology and alignment to the customer’s key business drivers. Organized technical workshops and reviews leading to the implementation of a paraffin treatment program with the customer.
Secured a new contract for the provision of chemical injection skids for Drag Reducing Agents (“DRA”) as part of a new development in Eastern Africa.
Executed a successful field trial for an innovative AAHI (hydrate inhibitor) with a major operator in Egypt. This strategic initiative is expected to assist the customer with significantly boosting production and enhancing operational efficiency.
Successfully qualified corrosion inhibitors for an existing gas field in Qatar. This achievement marks a significant step in supporting asset integrity assurance and commitment to delivering reliable solutions to the industry.
Qualified a new Kinetic Hydrate Inhibitor for a major gas field operated by a major national oil company in the Middle East region. This innovative solution delivers higher value, efficiency, and a lower total cost of operation.
Instituted notable customer-centric innovations, including the Right Products campaign which delivered 12 new chemistry innovations, the ParaClear^(R) program for paraffin remediation, and the full-time Flowback Team with new product lines and digital tools.
Advanced digital capabilities, including MyAnalytics platform for sales representatives, the Sensor Team for equipment monitoring, and a trial of a Centralized Ordering system to streamline orders.
Delivered on our first RenewIQ+^(R) opportunity, pumping a Reservoir Chemical Technologies chemistry in conjunction with our standard RenewIQ^(R) offering.
Gained significant commercial traction among key customers with Reservoir Chemical Technologies’ new acidizing technology. This innovative system has been evaluated by a major Middle East operator and recognized as one of the top-performing solutions in the market. This milestone underscores our commitment to providing sustainable, high-performance solutions that align with the evolving needs of the industry.

Other Business Highlights: Production & Automation Technologies

Expanded the portfolio of recently acquired RMSpumptools into North America, delivering new solutions to a major oil company in the Permian basin using permanent magnet motor technology. Additional interest and growth with customers are building into 2025.
Introduced the SMARTEN™ Lite rod pump controller, which offers an economical automation solution for marginal, low-producing rod pump wells. This new technology was successfully operating on 60 new wells in Q4 2024, helping operators gain 24/7 surveillance and remote control of their rod pump assets with a low-cost edge computing device that requires minimal hardware and setup.
Continuing to see strong market penetration and interest in Artificial Lift Performance’s Pump Checker software offering. Software license counts have increased by more than 30% since the February 2024 acquisition, with a focused growth on gas lift/plunger lift well applications.
Successfully added well density to a performance-based integrated production optimization (“IPO”) project recently secured with a customer in the Permian basin, and extended the reach of this holistic solution with an additional customer in the Permian. The IPO solution combines artificial lift, chemicals and chemical injection systems with digital automation, controls, data management, and optimization services to drive incremental production with effective cost management for operators.
Deployed a large SOOFIE™ continuous emissions monitoring system for an operator in the Middle East. Based on initial results, the customer plans to deploy additional fixed emissions monitoring systems as well as incorporate the ChampionX Aura™ optical gas imaging camera in the field. Our technology was selected based on its proven capabilities and ChampionX collaboration with the field team to assure a steady stream of high-quality data. The SOOFIE continuous monitoring system provides real-time, 24/7 surveillance of methane and other greenhouse gases at oil and gas facilities and landfills.
Completed installations of ChampionX’s AnX™ coiled rod technology with a Middle East operator. Based on the excellent performance of this corrosion-resistant coiled rod, the customer has ordered product to install in additional wells in 2025. AnX recently won the Gulf Energy Excellence award for Best Production Technology and has demonstrated dramatic run life improvement in highly corrosive applications in multiple geographies around the world.
Successfully completed the initial installations of a full rod pumping solution on a very challenging application in Colombia. The solution brings together both the downhole rods and pump with ChampionX’s rod lift production optimization software. The customer reports that results are exceeding expectations, with production increasing by 35% while reducing operating costs through optimizing resources required to operate the wells.
Expanded production optimization software capabilities with customers in Peru and Argentina. Our XSPOC™ software has been implemented across more than 300 wells in Peru and additional licenses are planned in Q1 2025. In Argentina, a customer implemented the software across three fields. By delivering diagnostic insights and actionable recommendations, XSPOC software enables customers to enhance well performance, increase production, and reduce operating costs.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

About ChampionX

ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com.

Forward-Looking Statements

This news 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, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on January 24, 2024 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 6, 2024, and each of their respective, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s subsequent Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Investor Contact: Byron Pope
byron.pope@championx.com
281-602-0094

Media Contact: John Breed
john.breed@championx.com
281-403-5751

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands, except per share amounts)		2024			2024			2023			2024			2023
Revenue	$	912,037		$	906,533		$	943,555		$	3,633,983		$	3,758,285
Cost of goods and services		600,154			608,764			661,337			2,445,281			2,618,646
Gross profit		311,883			297,769			282,218			1,188,702			1,139,639
Selling, general and administrative expense		184,722			180,501			147,415			720,632			633,032
(Gain) loss on sale-leaseback transaction and disposal group		—			57			—			(29,826	)		12,965
Interest expense, net		12,375			14,137			13,808			55,868			54,562
Foreign currency transaction losses (gains), net		1,697			3,505			14,651			2,490			36,334
Other income, net		(5,026	)		(2,176	)		(7,584	)		(3,337	)		(21,078	)
Income before income taxes		118,115			101,745			113,928			442,875			423,824
Provision for income taxes		33,204			28,078			35,771			115,746			105,105
Net income		84,911			73,667			78,157			327,129			318,719
Net income attributable to noncontrolling interest		2,145			1,659			959			6,863			4,481
Net income attributable to ChampionX	$	82,766		$	72,008		$	77,198		$	320,266		$	314,238

Earnings per share attributable to ChampionX:
Basic	$	0.43		$	0.38		$	0.40		$	1.68		$	1.60
Diluted	$	0.43		$	0.37		$	0.39		$	1.65		$	1.57

Weighted-average shares outstanding:
Basic		190,586			190,496			193,191			190,578			196,083
Diluted		193,487			193,362			196,649			193,643			199,906

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

	December 31,
(in thousands)		2024			2023
Assets
Current Assets:
Cash and cash equivalents	$	507,681		$	288,557
Receivables, net		466,782			534,534
Inventories, net		496,831			521,549
Prepaid expenses and other current assets		92,603			80,777
Total current assets		1,563,897			1,425,417

Property, plant and equipment, net		755,422			773,552
Goodwill		718,944			669,064
Intangible assets, net		258,614			243,553
Other non-current assets		173,375			130,116
Total assets	$	3,470,252		$	3,241,702

Liabilities
Current portion of long-term debt	$	6,203		$	6,203
Accounts payable		455,531			451,680
Other current liabilities		324,138			324,866
Total current liabilities		785,872			782,749

Long-term debt		591,453			594,283
Other long-term liabilities		261,749			203,639
Stockholders’ equity:
ChampionX stockholders’ equity		1,846,437			1,676,622
Noncontrolling interest		(15,259	)		(15,591	)
Total liabilities and equity	$	3,470,252		$	3,241,702

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Years Ended December 31,
(in thousands)		2024			2023
Cash flows from operating activities:
Net income	$	327,129		$	318,719
Depreciation and amortization		245,825			235,936
(Gain) loss on sale-leaseback transaction and disposal group		(29,826	)		12,965
Loss on Argentina Blue Chip Swap transaction		7,086			—
Deferred income taxes		(22,873	)		(22,272	)
(Gain) on disposal of fixed assets		(443	)		(1,046	)
Receivables		76,569			70,021
Inventories		(8,924	)		18,753
Accounts payable		(399	)		(53,891	)
Other assets		(15,152	)		20,395
Leased assets		(33,767	)		(51,247	)
Other operating items, net		44,456			(8,062	)
Net cash provided by operating activities		589,681			540,271

Cash flows from investing activities:
Capital expenditures		(141,310	)		(142,324	)
Proceeds from sale of fixed assets		12,113			14,545
Proceeds from sale-leaseback transaction		44,292			—
Purchase of investments		(31,526	)		—
Sale of investments		24,358			—
Acquisitions, net of cash acquired		(123,269	)		—
Net cash used for investing activities		(215,342	)		(127,779	)

Cash flows from financing activities:
Proceeds from long-term debt		—			15,500
Repayment of long-term debt		(6,203	)		(45,176	)
Repurchases of common stock		(49,399	)		(277,575	)
Dividends paid		(70,531	)		(64,980	)
Other		(24,324	)		(934	)
Net cash used for financing activities		(150,457	)		(373,165	)

Effect of exchange rate changes on cash and cash equivalents		(4,758	)		(957	)

Net increase in cash and cash equivalents		219,124			38,370
Cash and cash equivalents at beginning of period		288,557			250,187
Cash and cash equivalents at end of period	$	507,681		$	288,557

CHAMPIONX CORPORATION
BUSINESS SEGMENT DATA
(UNAUDITED)

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2024			2024			2023			2024			2023
Segment revenue:
Production Chemical Technologies	$	569,662		$	559,539		$	634,137		$	2,288,886		$	2,404,377
Production & Automation Technologies		269,568			275,700			241,294			1,042,369			1,003,146
Drilling Technologies		51,942			51,792			46,821			211,828			215,721
Reservoir Chemical Technologies		21,937			20,531			21,402			94,296			96,154
Corporate and other		(1,072	)		(1,029	)		(99	)		(3,396	)		38,887
Total revenue	$	912,037		$	906,533		$	943,555		$	3,633,983		$	3,758,285

Income (loss) before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	103,567		$	87,260		$	102,179		$	364,047		$	350,216
Production & Automation Technologies		39,027			34,136			22,110			123,840			118,409
Drilling Technologies		10,703			11,501			8,679			78,469			45,481
Reservoir Chemical Technologies		2,294			1,675			3,907			12,078			10,541
Total segment operating profit		155,591			134,572			136,875			578,434			524,647
Corporate and other		25,101			18,690			9,139			79,691			46,261
Interest expense, net		12,375			14,137			13,808			55,868			54,562
Income before income taxes	$	118,115		$	101,745		$	113,928		$	442,875		$	423,824

Operating profit margin / income (loss) before income taxes margin:
Production Chemical Technologies		18.2	%		15.6	%		16.1	%		15.9	%		14.6	%
Production & Automation Technologies		14.5	%		12.4	%		9.2	%		11.9	%		11.8	%
Drilling Technologies		20.6	%		22.2	%		18.5	%		37.0	%		21.1	%
Reservoir Chemical Technologies		10.5	%		8.2	%		18.3	%		12.8	%		11.0	%
ChampionX Consolidated		13.0	%		11.2	%		12.1	%		12.2	%		11.3	%

Adjusted EBITDA
Production Chemical Technologies	$	133,475		$	120,622		$	139,107		$	489,549		$	506,991
Production & Automation Technologies		70,739			69,604			52,800			259,531			232,672
Drilling Technologies		12,321			12,867			10,361			54,411			51,986
Reservoir Chemical Technologies		3,751			3,292			5,501			18,343			18,498
Corporate and other		(8,021	)		(8,873	)		(9,624	)		(37,112	)		(38,926	)
Adjusted EBITDA	$	212,265		$	197,512		$	198,145		$	784,722		$	771,221

Adjusted EBITDA margin
Production Chemical Technologies		23.4	%		21.6	%		21.9	%		21.4	%		21.1	%
Production & Automation Technologies		26.2	%		25.2	%		21.9	%		24.9	%		23.2	%
Drilling Technologies		23.7	%		24.8	%		22.1	%		25.7	%		24.1	%
Reservoir Chemical Technologies		17.1	%		16.0	%		25.7	%		19.5	%		19.2	%
ChampionX Consolidated		23.3	%		21.8	%		21.0	%		21.6	%		20.5	%

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2024			2024			2023			2024			2023
Net income attributable to ChampionX	$	82,766		$	72,008		$	77,198		$	320,266		$	314,238
Pre-tax adjustments:
(Gain) loss on sale-leaseback transaction and disposal group⁽¹⁾		—			57			—			(29,826	)		12,965
Russia sanctions compliance and impacts⁽²⁾		73			109			160			366			1,209
Restructuring and other related charges		2,704			5,317			2,407			17,657			13,387
Merger transaction costs⁽³⁾		14,434			8,312			—			37,805			245
Acquisition costs and related adjustments⁽⁴⁾		75			753			(6,817	)		2,634			(12,670	)
Intellectual property defense		158			69			638			1,537			1,545
Merger-related indemnification responsibility⁽⁵⁾		100			—			—			100			722
Tulsa, Oklahoma storm damage		—			—			660			305			3,162
Foreign currency transaction losses, net		1,697			3,505			14,651			2,490			36,334
Loss on Argentina Blue Chip Swap transaction		—			—			—			7,086			—
Tax impact of adjustments		(5,565	)		(4,259	)		(2,600	)		(10,480	)		(12,650	)
Adjusted net income attributable to ChampionX		96,442			85,871			86,297			349,940			358,487
Tax impact of adjustments		5,565			4,259			2,600			10,480			12,650
Net income attributable to noncontrolling interest		2,145			1,659			959			6,863			4,481
Depreciation and amortization		62,534			63,508			58,710			245,825			235,936
Provision for income taxes		33,204			28,078			35,771			115,746			105,105
Interest expense, net		12,375			14,137			13,808			55,868			54,562
Adjusted EBITDA	$	212,265		$	197,512		$	198,145		$	784,722		$	771,221

_______________________

(1)	Amounts represents the and the gain on the sale and leaseback of certain buildings and land during 2024. For the year ended December 31, 2023, the loss recorded to properly adjust the carrying value of our Chemical Technologies operations in Russia to the lower of carrying value or fair value less costs to sell .
(2)	Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.
(3)	Includes costs incurred during 2024 in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.
(4)	Includes costs incurred for the acquisition of businesses and revenue associated with the amortization of a liability established as part of the merger transaction with Ecolab Inc. (“Ecolab”) to acquire the Chemical Technologies business, representing unfavorable terms under the Cross Supply Agreement, as well as costs incurred for the acquisition of businesses. During the fourth quarter of 2023, we recorded a fair value adjustment to contingent consideration on a prior acquisition as well as the settlement of an item pursuant to the tax matters agreement with Ecolab.
(5)	Expense related to the June 3, 2020 merger transaction with Ecolab in which we acquired the Chemical Technologies business.

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2024			2024			2023			2024			2023
Diluted earnings per share attributable to ChampionX	$	0.43		$	0.37		$	0.39		$	1.65		$	1.57
Per share adjustments:
(Gain) loss on sale-leaseback transaction and disposal group		—			—			—			(0.15	)		0.06
Russia sanctions compliance and impacts		—			—			—						—
Restructuring and other related charges		0.01			0.03			0.01			0.09			0.07
Merger transaction costs		0.07			0.04			—			0.20			—
Acquisition costs and related adjustments		—			—			(0.03	)		0.01			(0.06	)
Intellectual property defense		—			—			—			0.01			0.01
Merger-related indemnification responsibility		—			—			—			—			—
Tulsa, Oklahoma storm damage		—			—			0.01			—			0.02
Foreign currency transaction losses		0.01			0.02			0.07			0.01			0.18
Loss on Argentina Blue Chip Swap transaction		—			—			—			0.04			—
Tax impact of adjustments		(0.02	)		(0.02	)		(0.01	)		(0.05	)		(0.06	)
Adjusted diluted earnings per share attributable to ChampionX	$	0.50		$	0.44		$	0.44		$	1.81		$	1.79

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2024			2024			2023			2024			2023
Production Chemical Technologies
Segment operating profit	$	103,567		$	87,260		$	102,179		$	364,047		$	350,216
Non-GAAP adjustments		2,251			7,073			11,194			19,108			51,717
Depreciation and amortization		27,657			26,289			25,734			106,394			105,058
Segment adjusted EBITDA	$	133,475		$	120,622		$	139,107		$	489,549		$	506,991

Production & Automation Technologies
Segment operating profit	$	39,027		$	34,136		$	22,110		$	123,840		$	118,409
Non-GAAP adjustments		75			1,656			1,231			9,807			5,246
Depreciation and amortization		31,637			33,812			29,459			125,884			109,017
Segment adjusted EBITDA	$	70,739		$	69,604		$	52,800		$	259,531		$	232,672

Drilling Technologies
Segment operating profit	$	10,703		$	11,501		$	8,679		$	78,469		$	45,481
Non-GAAP adjustments		306			54			109			(29,523	)		313
Depreciation and amortization		1,312			1,312			1,573			5,465			6,192
Segment adjusted EBITDA	$	12,321		$	12,867		$	10,361		$	54,411		$	51,986

Reservoir Chemical Technologies
Segment operating profit	$	2,294		$	1,675		$	3,907		$	12,078		$	10,541
Non-GAAP adjustments		39			3			4			69			1,486
Depreciation and amortization		1,418			1,614			1,590			6,196			6,471
Segment adjusted EBITDA	$	3,751		$	3,292		$	5,501		$	18,343		$	18,498

Corporate and other
Segment operating profit	$	(37,476	)	$	(32,827	)	$	(22,947	)	$	(135,559	)	$	(100,823	)
Non-GAAP adjustments		16,570			9,336			(839	)		40,693			(1,863	)
Depreciation and amortization		510			481			354			1,886			9,198
Interest expense, net		12,375			14,137			13,808			55,868			54,562
Segment adjusted EBITDA	$	(8,021	)	$	(8,873	)	$	(9,624	)	$	(37,112	)	$	(38,926	)

Free Cash Flow

	Three Months Ended									Years Ended
	Dec 31,			Sep 30,			Dec 31,			December 31,
(in thousands)		2024			2024			2023			2024			2023
Free Cash Flow
Cash provided by operating activities	$	207,250		$	141,298		$	168,953		$	589,681		$	540,271
Less: Capital expenditures, net of proceeds from sale of fixed assets		(37,117	)		(33,248	)		(29,142	)		(129,197	)		(127,779	)
Free cash flow	$	170,133		$	108,050		$	139,811		$	460,484		$	412,492

Cash From Operating Activities to Revenue Ratio
Cash provided by operating activities	$	207,250		$	141,298		$	168,953		$	589,681		$	540,271
Revenue	$	912,037		$	906,533		$	943,555		$	3,633,983		$	3,758,285

Cash from operating activities to revenue ratio		23	%		16	%		18	%		16	%		14	%

Free Cash Flow to Revenue Ratio
Free cash flow	$	170,133		$	108,050		$	139,811		$	460,484		$	412,492
Revenue	$	912,037		$	906,533		$	943,555		$	3,633,983		$	3,758,285

Free cash flow to revenue ratio		19	%		12	%		15	%		13	%		11	%

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	170,133		$	108,050		$	139,811		$	460,484		$	412,492
Adjusted EBITDA	$	212,265		$	197,512		$	198,145		$	784,722		$	771,221

Free cash flow to adjusted EBITDA ratio		80	%		55	%		71	%		59	%		53	%

The MIL Network –

February 5, 2025

MIL-OSI USA: Warner, Kaine, Colleagues Call for Reinstatement of Inspectors General Illegally Fired by President Trump

US Senate News:

Source: United States Senator for Virginia Tim Kaine

WASHINGTON, D.C. – U.S. Senators Mark R. Warner and Tim Kaine (both D-VA), alongside a group of 37 senators, wrote to President Trump strongly condemning the President’s recent order to remove Inspectors General (IGs) from at least 18 government agencies and called on the President to immediately reinstate the officials. According to the Inspector General Independence and Empowerment Act, which was signed into law in 2022, the President is required to provide a 30-day notice and substantive reasons for removal in writing to Congress before an Inspector General can be removed. President Trump failed to alert Congress or provide substantive reasoning.

In Virginia, IGs have played key roles in much-needed oversight, including over the quality of the United States Postal Services’ work, and in responding to the horrific animal abuse committed by Envigo Global Services against 4,000 beagles in Cumberland County.

“These officials, which include those appointed by Presidents of both parties, including many during your first Administration, collectively conduct oversight of trillions of dollars of federal spending and the conduct of millions of federal employees,” wrote the senators. “Removing these non-partisan watchdogs without providing a substantive and non-political reason is not lawful, and undermines their independence, jeopardizing their critical mission to identify and root out waste, fraud, and abuse within federal programs.”

The senators continued, “While the President has the authority to remove Inspectors General from office, Congress has established clear requirements to ensure such removals are transparent and are not politicized. The law requires that the President provide a written 30-day notice to both Houses of Congress and include “the substantive rationale, including detailed and case-specific reasons for any such removal or transfer.” With respect to your firings Friday night, Congress has not received either the mandatory 30-day notice or a rationale for their removal. Because your actions violated the law, these Inspectors General should be reinstated immediately…”

IGs are responsible for providing independent oversight of federal programs and play a key role in improving government efficiency and effectiveness. IGs were removed from at least 18 departments and agencies, including Departments of Defense, State, Education, Transportation, Veterans Affairs, Housing and Urban Development, Interior, Energy, Commerce, Agriculture, Labor, Health and Human Services, and Treasury, and the Environmental Protection Agency, the Office of Personnel Management, the Small Business Administration, the Social Security Administration, and the Special Inspector General for Afghanistan Reconstruction.

In addition to Warner and Kaine, the letter was signed by U.S. Senators Gary Peters (D-MI), Chuck Schumer (D-NY), Ed Markey (D-MA), Peter Welch (D-VT), Sheldon Whitehouse (D-RI), Adam Schiff (D-CA), Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), Cory Booker (D-NJ), Catherine Cortez Masto (D-NV), Richard Blumenthal (D-CT), Ron Wyden (D-OR), Ruben Gallego (D-AZ), Bernie Sanders (I-VT), Brian Schatz (D-HI), Maggie Hassan (D-NH), Jack Reed (D-RI), Dick Durbin (D-IL), Andy Kim (D-NJ), Alex Padilla (D-CA), Mazie Hirono (D-HI), Elissa Slotkin (D-MI), Amy Klobuchar (D-MN), John Hickenlooper (D-CO), Jacky Rosen (D-NV), Rev. Raphael Warnock (D-GA), Jeanne Shaheen (D-NH), Martin Heinrich (D-NM), Jeff Merkley (D-OR), Kirsten Gillibrand (D-NY), Lisa Blunt Rochester (D-DE), Maria Cantwell (D-WA), Patty Murray (D-WA), Mark Kelly (D-AZ), Angela Alsobrooks (D-MD), and John Fetterman (D-PA).

The full text of the letter is available here and below.

Dear Mr. President,

Your decision Friday evening to remove Inspectors General (IGs) from at least 18 offices across government—including those overseeing the Departments of Defense, State, Education, Transportation, Veterans Affairs, Housing and Urban Development, Interior, Energy, Commerce, Agriculture, Labor, Health and Human Services, and Treasury, and the Environmental Protection Agency, the Office of Personnel Management, the Small Business Administration, and the Social Security Administration, as well as the Special Inspector General for Afghanistan Reconstruction—does not comply with current law and could do lasting harm to IG independence. These officials, which include those appointed by Presidents of both parties, including many during your first Administration, collectively conduct oversight of trillions of dollars of federal spending and the conduct of millions of federal employees. Removing these non-partisan watchdogs without providing a substantive and non-political reason is not lawful, and undermines their independence, jeopardizing their critical mission to identify and root out waste, fraud, and abuse within federal programs.

Inspectors General are responsible for providing independent oversight of federal programs by working to root out waste, fraud, and abuse and protect taxpayer dollars – oversight our federal agencies desperately need. They play a key role in improving government efficiency and effectiveness and have helped identify and recover billions of taxpayer dollars. IG independence is the foundation of this work, and IGs must be free of political influence so that they can carry out their important mission with integrity and credibility. The federal government and the American people count on these officials to operate in a professional and non-partisan way to hold our government accountable—regardless of who is in power. Without strong, qualified, and independent officials to lead these critical efforts, the Administration risks wasting taxpayer dollars, and allowing fraud and misconduct to go unchecked. For example, just this week the Office of Management and Budget (OMB) issued an unlawful memo directing agencies to pause nearly all federal grants and loans, which significantly disrupts the administration of over a trillion dollars of critical assistance to communities, businesses, and organizations across the country. It is especially vital to have independent watchdogs at each of these agencies to conduct oversight of the impacts of this unconstitutional and unprecedented directive.

While the President has the authority to remove Inspectors General from office, Congress has established clear requirements to ensure such removals are transparent and are not politicized. The law requires that the President provide a written 30-day notice to both Houses of Congress and include “the substantive rationale, including detailed and case-specific reasons for any such removal or transfer.” With respect to your firings Friday night, Congress has not received either the mandatory 30-day notice or a rationale for their removal. Because your actions violated the law, these Inspectors General should be reinstated immediately, until such time as you have provided in writing “the substantive rationale, including detailed and case-specific reasons” for each of the affected Inspectors General and the 30-day notice period has expired.

Lastly, if you believe it is necessary to place any of the affected IGs on administrative leave before the 30-day notice period has ended, the law requires that you submit a separate notification to Congress explaining how the IG presents a threat as defined in the Administrative Leave Act.

Sincerely,

MIL OSI USA News –

February 5, 2025

MIL-OSI USA: Kaine & Colleagues Introduce Bipartisan Legislation to Help More Americans Access High-Quality Job Training, Get Good-Paying Jobs

US Senate News:

Source: United States Senator for Virginia Tim Kaine

WASHINGTON, D.C. — Today, U.S. Senators Tim Kaine (D-VA), co-chair of the Senate Career and Technical Education (CTE) Caucus and a member of the Senate Health, Education, Labor and Pensions (HELP) Committee, Susan Collins (R-ME), Tina Smith (D-MN), and Roger Marshall (R-KS) introduced the Jumpstarting Our Businesses by Supporting Students (JOBS) Act, bipartisan legislation to help more Americans get good-paying jobs by allowing students to use federal Pell Grants—need-based education grants for lower-income individuals—to pay for shorter-term job training programs for the first time. Currently, students can only use Pell Grants for two- and four-year colleges and universities. By expanding Pell Grant eligibility, the JOBS Act would help close the skills gap by allowing people to access job training they might otherwise be unable to afford but need for careers in high-demand fields.

“No one should be priced out of an education—including a technical education—but I hear from many Virginians that access to high-quality job training programs that align with their goals is out of reach because of financial barriers,” said Kaine. “Simultaneously, I hear from employers throughout the Commonwealth about their struggles to fill skilled labor positions. With these Virginians in mind, I wrote the JOBS Act to help remedy these issues and provide more workers with the skills they need to get good-paying jobs and provide for their families. This bill is good for workers, good for employers, and good for our economy as a whole.”

Thanks to historic investments like the Bipartisan Infrastructure Law, the job market has boomed in recent years. From January 2021–January 2025, the U.S. economy added 14.8 million jobs. But there’s also a skilled labor shortage that is expected to intensify in the coming years, in part because unemployed Americans lack access to the job training needed to fill vacant jobs.

“Job training programs are proven, successful tools that help people gain the skills they need to prepare for rewarding careers,” said Collins. “By helping students in Maine and across the country access this career pathway, this bipartisan legislation would assist young people with obtaining good-paying jobs and make it easier for businesses to find qualified workers.”

“Some of the most in-demand jobs don’t require a four-year college degree — they require shorter-term training. People like welders, machine operators and medical technicians. We need to make it easier to get people into these career fields, and letting students use Pell Grants to make it happen just makes sense,” said Smith. “This bill will open up more career opportunities for people and will help boost our economy.”

“The JOBS Act will provide an incredible opportunity for students that increasingly don’t find the value of a four-year degree,” said Marshall. “With a changing job market, our legislation will give Americans the chance to learn critical skills for a successful career. I look forward to getting the JOBS Act across the finish line with my colleagues.”

“We’re so grateful that Senator Kaine has reintroduced the JOBS Act, and is willing to continue advocating for this important legislation which will re-skill and upskill our citizens who want to improve their income and the lives of themselves and their families,” said Virginia Community College System Chancellor David Doré. “Thousands of Virginians are eager to learn new skills to advance their careers and would benefit from being able to use Pell Grants to pay for high quality workforce training for in-demand jobs. We urge Congress to support Senator Kaine’s JOBS Act.”

The JOBS Act would allow Pell Grants to be used for high-quality job training programs that are at least eight weeks in length and lead to industry-recognized credentials or certificates. Under current law, Pell Grants can only be applied toward programs that are over 600 clock hours or at least 15 weeks in length, rendering students in shorter-term high-quality job training programs ineligible for crucial assistance.

Specifically, the JOBS Act would amend the Higher Education Act by:

Expanding Pell Grant eligibility to students enrolled in rigorous and high-quality, short-term skills and job training programs that lead to industry-recognized credentials and certificates and ultimately employment in high-wage, high-skill industry sectors or careers.
Ensuring students who receive Pell Grants are earning high-quality postsecondary credentials by requiring that the credentials:
- Meet the standards under the Workforce Innovation and Opportunity Act (WIOA), such as meaningful career counseling and aligning programs to in-demand career pathways or registered apprenticeship programs
- Are recognized by employers, industry, or sector partnerships
- Align with the skill needs of industries in the state or local economy
- Are approved by the state workforce board in addition to the U.S. Department of Education
Defining eligible job training programs as those providing career and technical education instruction at an institution of higher education, such as a community or technical college that provides:
- At least 150 clock hours of instruction time over a period of at least 8 weeks
- Training that meets the needs of the local or regional workforce and industry partnerships
- Streamlined ability to transfer credits so students can continue to pursue further education in their careers
- Students with licenses, certifications, or credentials that meet the hiring requirements of multiple employers in the field for which the job training is offered

The legislation is cosponsored by U.S. Senators Tammy Baldwin (D-WI), Richard Blumenthal (D-CT), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), John Boozman (R-AR), Shelley Moore Capito (R-WV), Chris Coons (D-DE), Catherine Cortez Masto (D-NV), Kevin Cramer (R-ND), Steve Daines (R-MT), Tammy Duckworth (D-IL), Kirsten Gillibrand (D-NY), Maggie Hassan (D-NH), Martin Heinrich (D-NM), John Hickenlooper (D-CO), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Mark Kelly (D-AZ), Angus King (I-ME), Amy Klobuchar (D-MN), Jeff Merkley (D-OR), Jon Ossoff (D-GA), Gary Peters (D-MI), Jacky Rosen (D-NV), Jeanne Shaheen (D-NH), Dan Sullivan (D-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL), Chris Van Hollen (D-MD), Mark R. Warner (D-VA), Roger Wicker (R-MS), and Ron Wyden (D-OR).

The JOBS Act is supported by Advance CTE, the American Association of Community Colleges (AACC), the Association for Career and Technical Education (ACTE), the Association of Community College Trustees (ACCT), the Association of Equipment Manufacturers (AEM), Business Roundtable, the Center for Law and Social Policy (CLASP), the Exhibitions and Conferences Alliance (ECA), Higher Learning Advocates (HLA), HP Inc., the Information Technology Industry Council (ITI), Jobs for the Future (JFF), the Joint Center for Political and Economic Studies, NAF, the National Association of Workforce Boards (NAWB), the National Association of Workforce Development Professionals (NAWDP), the National Skills Coalition (NSC), the Progressive Policy Institute (PPI), Rebuilding America’s Middle Class (RAMC), and the Virginia Community College System.

Full text of the bill is available here, and a summary of the bill is available here.

MIL OSI USA News –

February 5, 2025

MIL-OSI: UK’s Aldermore Bank selects Temenos to launch new small business savings notice accounts

Source: GlobeNewswire (MIL-OSI)

GRAND-LANCY, Switzerland, Feb. 04, 2025 (GLOBE NEWSWIRE) — Temenos (SIX: TEMN) today announced that UK-based Aldermore Bank (Aldermore) has selected Temenos SaaS to modernize its existing savings operations starting with quickly launching new savings notice accounts for small businesses.

The bank will adopt Temenos Business & Corporate Enterprise Service to achieve a fast time to market and scale efficiently as it seeks to grow customer deposits and unlock new sources of revenue. Using Temenos’ end-to-end service for business and corporate banking, Aldermore will leverage pre-configured, proven capabilities across core and digital banking, to enable rapid deployment of its new products.

Following the launch of these, Aldermore will also migrate its existing business savings accounts to Temenos, consolidating multiple legacy systems on a single, cloud-based solution with the highest security standards. This will enable the bank to increase efficiency and deliver exceptional experiences in line with its customer-centric business model.

Part of First Rand Group, the largest financial services group in Africa, Aldermore is a multi-specialist lending and savings provider with total assets of £20.5bn. The bank is focused on helping groups underserved by mainstream providers, particularly SMEs, homeowners, landlords and intermediaries.

With Temenos Business & Corporate Enterprise Service, Aldermore will benefit from high levels of automation to easily configure banking services that meet the specific needs of its client base. Leveraging, pre-packaged capabilities tailored to the UK market, as well as pre-defined user journeys and proven processes, Aldermore will be able to quickly move these into production and scale according to customer demand on a proven, modern solution.

Alex Myers, Commercial Director for savings at Aldermore Bank, said: “This strategic technology investment will help us to rapidly expand our offering, providing more customer-centric solutions and exceptional experiences for the underserved small business market. With Temenos SaaS, we can launch new products in record time, with the agility to adapt to the changing needs of our customers.”

Mark Yamin-Ali, Managing Director, Europe, Temenos, commented: “We’re delighted Aldermore has chosen Temenos SaaS to help drive its expansion of business savings. Aldermore prioritized both advanced technology and robust functionality, and Temenos was the only provider that met both needs. With pre-configured, proven capabilities tailored to the UK market and the small business sector, Temenos will help the bank to deliver a much faster time to market and increased efficiency as it looks to drive future growth.”

Temenos is the global market leader in banking software, ranked #1 by IBS Intelligence in eight categories, including core, digital and Islamic banking, in the latest IBS Intelligence Sales League Table. Temenos was also named a Leader in the The Forrester Wave™: Digital Banking Processing Platforms, Q4 2024.

About Aldermore Bank
Aldermore backs more people to go for it, in life and business. We get finance to people who want to get on in life; building businesses, buying property and purchasing vehicles. And we champion equality by supporting those that the big traditional banks can’t or won’t help.

The Group consists of two operating companies, Aldermore Bank plc and MotoNovo Finance Limited. Aldermore Bank provides finance to business owners, homeowners and landlords, and supports savers. It operates online, by phone and through networks. MotoNovo Finance helps people buy their next car, van or motorcycle.

Aldermore Group is part of FirstRand Group, the largest financial services group in Africa by market capitalisation.

About Temenos
Temenos (SIX: TEMN) is the world’s leading platform for banking, serving clients in 150 countries by helping them build new banking services and state-of-the-art customer experiences. Top performing banks using Temenos software achieve cost-income ratios almost half the industry average and returns on equity 2X the industry average.

For more information, please visit www.temenos.com.

Media Contacts

Scott Rowe & Michael Anderson Temenos Global Public Relations Tel: +44 20 7423 3857 Email: press@temenos.com	Gabriel Goonetillake Temenos Team at Edelman Smithfield Tel: +44 7813 407710 Email: Temenos@EdelmanSmithfield.com

The MIL Network –

February 5, 2025

MIL-OSI Economics: Verizon adds another epic deal for mobile and home customers with Google One AI Premium

Source: Verizon

Headline: Verizon adds another epic deal for mobile and home customers with Google One AI Premium

[TL;DR]

Verizon bolsters its perk portfolio with the addition of Google One AI Premium at exclusive value for myPlan and myHome customers at an unbeatable deal
Get access to Gemini Advanced for everyday tasks, and 2 TB of sharable cloud storage for an exclusive monthly price of just $10/mo. (a savings of $9.99/mo.)¹
Verizon continues to add new perks to myPlan and myHome, giving customers access to their favorite productivity and streaming services at a great value

[Big News]

Verizon continues to pack more value into myPlan and myHome with the addition of the first AI perk from a wireless provider — Google One AI Premium.

Starting February 6, Verizon customers can choose Google One AI Premium as a perk on their myPlan (mobile) or myHome (internet) plan for just $10 a month — that’s half the price of the usual $19.99. This new perk unlocks access to Gemini Advanced, 2 TB of storage, and more benefits across Google — all in one incredible package, making everyday tasks easier.

[Why it matters]

Verizon isn’t just keeping up with the future — we’re building it. Being the first U.S. wireless provider to offer an AI-powered perk shows how serious we are about leading the way in innovation. And the value? Unmatched.

For just $10 a month, you’re unlocking your pass to Google’s next-gen AI with Gemini Advanced, Gemini in Google apps like Gmail and Docs, plus priority access to Google’s newest AI solutions — from new features to experimental models. These tools can completely transform how you work, learn and create. Whether you’re a busy professional looking for ways to save time, a student tackling big projects, or someone who just likes to experiment, this perk gives you tools that take your productivity and creativity to the next level.

With Google One AI Premium, Verizon is leading the charge in making advanced AI more accessible than ever.

“As the first U.S. wireless provider to offer an AI-powered perk at an incredible value, we’re putting the future of AI directly into our customers’ hands, making everyday tasks easier via Google One AI Premium,” said Sowmyanarayan Sampath, CEO Verizon Consumer. “We’ll continue to bring our mobile and internet customers new deals and even more ways to personalize their plans based on how they live, work and play.”

Here’s what you’re getting for only $10 a month:

Get more done, faster with your personal tutor, analyst or coach. With Gemini Advanced, it’s like having a super-smart assistant by your side 24/7 to help you tackle tasks and spend more time on what’s most important. You can use Gemini in the Google apps you already know and love like Gmail, Docs, Meet, Slides and Sheets to write a draft, take meeting notes, create stunning presentations, visualize data and more.

Streamline your daily tasks. Create and use custom AI experts (“Gems”), for any topic, turning Gemini into your personal brainstorming partner, study helper or planning assistant.

Save hours on research. Analyze whole books and stacks of articles (up to 1,500 pages) or use Deep Research to browse hundreds of sites and create comprehensive reports in minutes to bring you up to speed on a topic.

Get more space for what’s important. With 2 TB of cloud storage, you’ll have plenty of space to keep your files, photos, and videos safely backed up to the cloud. Forget about running out of room or losing track of important stuff.

[The benefits of Verizon’s plans and perks]

Verizon is committed to always enhancing myPlan and myHome, and the addition of Google One AI Premium is just the latest example of how we’re providing customers with more value and flexibility.

Here’s what makes myPlan and myHome so unique:

Tailored to your lifestyle. With perks like Disney Bundle, Netflix & Max (with ads) or YouTube Premium, you can turn your plan into an entertainment hub. If you’re a parent, a sports fan or a music lover, there’s something for everyone.
Flexibility and choice. You can add or remove perks whenever you want. If your needs change — like planning a vacation or switching streaming platforms — you’re in control of what you’re paying for.
Bundle and save. Verizon lets you bundle for even more value. Get the best of Google with YouTube Premium and Google One AI Premium for $20 a month. That’s $13.98 in savings versus subscribing to both services separately.
Enhanced connectivity. Need more data for travel or work? The 100 GB Mobile Hotspot and (3) TravelPass Days perks make sure you stay connected, whether at home or abroad. It’s perfect for frequent travelers or people working on the go.

[How to add Google One AI Premium to your plan]

Already a Verizon customer? Just log into the My Verizon app or visit verizon.com on February 6 to add Google One AI Premium perk to your plan. Not a customer yet? Check out our free trial and find out why Verizon is awesome.

1 Google One AI Premium perk requires line subscribed to myPlan or a Verizon Home Internet plan with myHome. Must be 18 yrs or older. Cancel anytime. One offer per eligible Verizon line or eligible Verizon Home Internet (“VHI”) plan. Add’l terms apply.

MIL OSI Economics –

February 5, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

Second Quarter of Fiscal Year 2025 Financial Highlights

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

Business Highlights

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

Third Quarter and Full Fiscal Year 2025 Outlook

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

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

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

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

Corporate Presentation

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

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

About Intapp

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

Forward-Looking Statements

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

Presentation Changes Related to SaaS and License Revenue

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

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

Non-GAAP Financial Measures and Other Metrics

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

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

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

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

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

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

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


INTAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share data and percentages)

	Three Months Ended December 31,						Six Months Ended December 31,
	2024			2023			2024			2023
Revenues
SaaS	$	79,976		$	63,117		$	156,852		$	122,030
License		28,017			28,135			56,509			56,186
Professional services		13,216			12,681			26,653			27,292
Total revenues		121,209			103,933			240,014			205,508
Cost of revenues
SaaS		16,292			12,810			31,610			25,521
License		1,630			1,606			3,382			3,308
Professional services		14,549			16,353			29,413			33,513
Total cost of revenues		32,471			30,769			64,405			62,342
Gross profit		88,738			73,164			175,609			143,166
Gross margin		73.2	%		70.4	%		73.2	%		69.7	%
Operating expenses:
Research and development		33,325			27,981			65,752			56,477
Sales and marketing		40,791			35,269			78,551			69,688
General and administrative		24,808			20,996			48,746			42,048
Total operating expenses		98,924			84,246			193,049			168,213
Operating loss		(10,186	)		(11,082	)		(17,440	)		(25,047	)
Interest and other income (expense), net		(202	)		2,057			3,220			1,114
Net loss before income taxes		(10,388	)		(9,025	)		(14,220	)		(23,933	)
Income tax benefit (expense)		171			(188	)		(517	)		(601	)
Net loss	$	(10,217	)	$	(9,213	)	$	(14,737	)	$	(24,534	)
Net loss per share, basic and diluted	$	(0.13	)	$	(0.13	)	$	(0.19	)	$	(0.35	)
Weighted-average shares used to compute net loss per share, basic and diluted		78,118			70,521			76,861			69,729


INTAPP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands)

	December 31, 2024			June 30, 2024
Assets
Current assets:
Cash and cash equivalents	$	285,631		$	208,370
Restricted cash		200			200
Accounts receivable, net		87,596			95,103
Unbilled receivables, net		13,786			13,300
Other receivables, net		4,412			2,743
Prepaid expenses		11,284			9,031
Deferred commissions, current		14,232			13,907
Total current assets		417,141			342,654
Property and equipment, net		20,172			18,944
Operating lease right-of-use assets		18,426			21,382
Goodwill		285,907			285,969
Intangible assets, net		34,351			40,293
Deferred commissions, noncurrent		18,335			18,495
Other assets		6,255			5,262
Total assets	$	800,587		$	732,999
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	16,631		$	13,348
Accrued compensation		35,045			42,066
Accrued expenses		7,266			12,040
Deferred revenue, net		234,962			218,923
Other current liabilities		12,243			14,270
Total current liabilities		306,147			300,647
Deferred tax liabilities		1,255			1,336
Deferred revenue, noncurrent		3,033			3,563
Operating lease liabilities, noncurrent		17,409			19,605
Other liabilities		4,353			4,610
Total liabilities		332,197			329,761
Stockholders’ equity:
Common stock		79			75
Additional paid-in capital		971,631			891,681
Accumulated other comprehensive loss		(1,401	)		(1,336	)
Accumulated deficit		(501,919	)		(487,182	)
Total stockholders’ equity		468,390			403,238
Total liabilities and stockholders’ equity	$	800,587		$	732,999


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

	Three Months Ended December 31,						Six Months Ended December 31,
	2024			2023			2024			2023
Cash Flows from Operating Activities:
Net loss	$	(10,217	)	$	(9,213	)	$	(14,737	)	$	(24,534	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		4,372			3,975			8,839			7,984
Amortization of operating lease right-of-use assets		1,278			1,152			2,558			2,282
Accounts receivable allowances		273			803			823			1,228
Stock-based compensation		25,411			16,508			45,400			35,265
Change in fair value of contingent consideration		—			(784	)		(1,004	)		(2,215	)
Deferred income taxes		(26	)		(104	)		(74	)		(217	)
Other		38			39			76			77
Changes in operating assets and liabilities:
Accounts receivable		(23,742	)		(10,902	)		6,465			12,570
Unbilled receivables, current		(1,009	)		(1,888	)		(486	)		(5,774	)
Prepaid expenses and other assets		(2,433	)		(446	)		(5,001	)		(1,788	)
Deferred commissions		(1,832	)		(1,189	)		(165	)		(1,068	)
Accounts payable and accrued liabilities		185			9,760			(7,875	)		(1,517	)
Deferred revenue, net		32,784			4,615			15,509			4,837
Operating lease liabilities		(1,344	)		(768	)		(2,675	)		(2,339	)
Other liabilities		1,501			477			2,032			(1,144	)
Net cash provided by operating activities		25,239			12,035			49,685			23,647
Cash Flows from Investing Activities:
Purchases of property and equipment		(62	)		(213	)		(416	)		(1,354	)
Capitalized internal-use software costs		(1,915	)		(1,592	)		(3,449	)		(3,453	)
Business combinations, net of cash acquired		—			—			(897	)		—
Net cash used in investing activities		(1,977	)		(1,805	)		(4,762	)		(4,807	)
Cash Flows from Financing Activities:
Payments for deferred offering costs		—			(148	)		—			(781	)
Proceeds from stock option exercises		9,666			15,612			32,584			17,936
Proceeds from employee stock purchase plan		1,970			1,725			1,970			1,725
Payments of deferred contingent consideration and holdback associated with acquisitions		(1,023	)		(2,551	)		(2,410	)		(2,551	)
Net cash provided by financing activities		10,613			14,638			32,144			16,329
Effect of foreign currency exchange rate changes on cash and cash equivalents		(2,091	)		(58	)		194			203
Net increase in cash, cash equivalents and restricted cash		31,784			24,810			77,261			35,372
Cash, cash equivalents and restricted cash – beginning of period		254,047			141,747			208,570			131,185
Cash, cash equivalents and restricted cash – end of period	$	285,831		$	166,557		$	285,831		$	166,557

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

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

Non-GAAP Gross Profit

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

Non-GAAP Operating Expenses

	Three Months Ended December 31,						Six Months Ended December 31,
	2024			2023			2024			2023
GAAP research and development	$	33,325		$	27,981		$	65,752		$	56,477
Stock-based compensation		(6,800	)		(4,468	)		(11,424	)		(9,114	)
Restructuring and other costs		(113	)		—			(162	)		—
Non-GAAP research and development	$	26,412		$	23,513		$	54,166		$	47,363


GAAP sales and marketing	$	40,791		$	35,269		$	78,551		$	69,688
Stock-based compensation		(7,232	)		(4,888	)		(12,970	)		(10,227	)
Amortization of intangible assets		(1,268	)		(1,396	)		(2,536	)		(2,883	)
Non-GAAP sales and marketing	$	32,291		$	28,985		$	63,045		$	56,578


GAAP general and administrative	$	24,808		$	20,996		$	48,746		$	42,048
Stock-based compensation		(8,677	)		(5,134	)		(16,072	)		(12,032	)
Amortization of intangible assets		(163	)		(163	)		(326	)		(326	)
Change in fair value of contingent consideration		—			784			1,004			2,215
Transaction costs ⁽¹⁾		(530	)		(350	)		(664	)		(678	)
Restructuring and other costs		(64	)		—			(236	)		—
Non-GAAP general and administrative	$	15,374		$	16,133		$	32,452		$	31,227

Non-GAAP Operating Income

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

Non-GAAP Net Income

	Three Months Ended December 31,						Six Months Ended December 31,
	2024			2023			2024			2023
GAAP net loss	$	(10,217	)	$	(9,213	)	$	(14,737	)	$	(24,534	)
Adjusted to exclude the following:
Stock-based compensation		25,411			16,508			45,400			35,265
Amortization of intangible assets		2,940			2,614			5,942			5,319
Change in fair value of contingent consideration		—			(784	)		(1,004	)		(2,215	)
Transaction costs ⁽¹⁾		530			350			664			678
Restructuring and other costs		230			—			460			—
Income tax effect of non-GAAP adjustments		(1,489	)		(710	)		(2,513	)		(1,125	)
Non-GAAP net income	$	17,405		$	8,765		$	34,212		$	13,388

GAAP net loss per share, basic and diluted	$	(0.13	)	$	(0.13	)	$	(0.19	)	$	(0.35	)
Non-GAAP net income per share, diluted	$	0.21		$	0.11		$	0.41		$	0.17

Weighted-average shares used to compute GAAP net loss per share, basic and diluted		78,118			70,521			76,861			69,729
Weighted-average shares used to compute non-GAAP net income per share, diluted		83,910			80,285			82,724			79,926

Free Cash Flow

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

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

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

The MIL Network –

February 5, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

Financial Summary for the Fourth Quarter Ended December 31, 2024

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

Financial Summary for the Year Ended December 31, 2024

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

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

Key Performance Indicators and Recent Business Highlights

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

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

Financial Outlook

For the first quarter of 2025, the Company expects:

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

For full year 2025, the Company expects:

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

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

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

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

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

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

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

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

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

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

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

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

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

Forward-Looking Statements

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

About Varonis

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

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

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

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

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

Varonis Systems, Inc.
Consolidated Statements of Operations
(in thousands, except for share and per share data)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
	Unaudited						Unaudited
Revenues:
Term license subscriptions	$	66,781		$	106,184		$	254,241		$	356,490
SaaS		72,206			22,980			208,781			44,417
Maintenance and services		19,527			24,935			87,928			98,253
Total revenues		158,514			154,099			550,950			499,160

Cost of revenues		26,055			19,347			93,847			71,751

Gross profit		132,459			134,752			457,103			427,409

Operating expenses:
Research and development		50,546			48,144			196,765			183,838
Sales and marketing		76,123			70,569			288,769			277,893
General and administrative		23,342			21,283			89,220			82,901
Total operating expenses		150,011			139,996			574,754			544,632

Operating loss		(17,552	)		(5,244	)		(117,651	)		(117,223	)
Financial income, net		7,605			5,433			34,644			30,305

Income (loss) before income taxes		(9,947	)		189			(83,007	)		(86,918	)
Income taxes		(3,047	)		(1,087	)		(12,758	)		(13,998	)

Net loss	$	(12,994	)	$	(898	)	$	(95,765	)	$	(100,916	)

Net loss per share of common stock, basic and diluted	$	(0.12	)	$	(0.01	)	$	(0.86	)	$	(0.92	)

Weighted average number of shares used in computing net loss per share of common stock, basic and diluted		112,488,376			109,007,859			111,660,541			109,141,894

*Stock-based compensation expense for the* *three* *and* *twelve months ended* *December 31, 2024* *and* *2023* *is included in the Consolidated Statements of Operations as follows (in thousands):*

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023
	Unaudited				Unaudited
Cost of revenues	$	1,175	$	1,275	$	5,192	$	7,221
Research and development		10,709		11,199		41,766		48,679
Sales and marketing		10,509		10,186		41,494		48,047
General and administrative		10,176		8,983		38,230		35,872
	$	32,569	$	31,643	$	126,682	$	139,819

*Payroll tax expense related to stock-based compensation for the* *three* *and* *twelve months ended* *December 31, 2024* *and* *2023* *is included in the Consolidated Statements of Operations as follows (in thousands):*

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023
	Unaudited				Unaudited
Cost of revenues	$	6	$	20	$	637	$	405
Research and development		38		133		604		365
Sales and marketing		146		152		3,196		1,972
General and administrative		16		32		1,181		518
	$	206	$	337	$	5,618	$	3,260

*Amortization of acquired intangibles and acquisition-related expenses for the* *three* *and* *twelve months ended* *December 31, 2024* *and* *2023* *is included in the Consolidated Statements of Operations as follows (in thousands):*

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023
	Unaudited				Unaudited
Cost of revenues	$	119	$	381	$	1,263	$	1,525
Research and development		—		128		—		1,363
Sales and marketing		—		—		—		—
General and administrative		—		—		—		—
	$	119	$	509	$	1,263	$	2,888

Varonis Systems, Inc.
Consolidated Balance Sheets
(in thousands)

	December 31, 2024			December 31, 2023
	Unaudited
Assets
Current assets:
Cash and cash equivalents	$	185,585		$	230,740
Marketable securities		343,383			253,175
Short-term deposits		39,450			49,800
Trade receivables, net		192,832			169,116
Prepaid expenses and other short-term assets		116,824			64,326
Total current assets		878,074			767,157
Long-term assets:
Long-term marketable securities		658,896			211,063
Operating lease right-of-use assets		45,593			51,838
Property and equipment, net		30,795			33,964
Intangible assets, net		—			1,263
Goodwill		23,135			23,135
Other assets		27,782			15,490
Total long-term assets		786,201			336,753
Total assets	$	1,664,275		$	1,103,910

Liabilities and stockholders’ equity
Current liabilities:
Trade payables	$	4,313		$	672
Accrued expenses and other short-term liabilities		164,930			125,057
Convertible senior notes, net		250,529			—
Deferred revenues		290,113			181,049
Total current liabilities		709,885			306,778
Long-term liabilities:
Convertible senior notes, net		450,243			250,477
Operating lease liabilities		42,789			51,313
Deferred revenues		2,211			886
Other liabilities		3,491			4,808
Total long-term liabilities		498,734			307,484

Stockholders’ equity:
Share capital
Common stock		113			109
Accumulated other comprehensive income (loss)		2,676			(8,649	)
Additional paid-in capital		1,193,022			1,142,578
Accumulated deficit		(740,155	)		(644,390	)
Total stockholders’ equity		455,656			489,648
Total liabilities and stockholders’ equity	$	1,664,275		$	1,103,910

Varonis Systems, Inc.
Consolidated Statements of Cash Flows
(in thousands)

	Twelve Months Ended December 31,
	2024			2023
	Unaudited
Cash flows from operating activities:
Net loss	$	(95,765	)	$	(100,916	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		11,126			11,703
Stock-based compensation		126,682			139,819
Amortization of deferred commissions		54,392			53,072
Non-cash operating lease costs		9,526			9,468
Amortization of debt issuance costs		2,144			1,514
Amortization of premium and accretion of discount on marketable securities, net		(12,690	)		(9,354	)
Acquired in-process research and development		6,653			—

Changes in assets and liabilities:
Trade receivables		(23,716	)		(33,137	)
Prepaid expenses and other short-term assets		(35,332	)		(21,459	)
Deferred commissions		(59,820	)		(53,505	)
Other long-term assets		347			(577	)
Trade payables		3,641			(2,290	)
Accrued expenses and other short-term liabilities		17,317			(5,278	)
Deferred revenues		110,389			69,882
Other long-term liabilities		306			474
Net cash provided by operating activities		115,200			59,416

Cash flows from investing activities:
Proceeds from maturities of marketable securities		308,840			301,350
Proceeds from sales of marketable securities		111,552			—
Investment in marketable securities		(949,841	)		(517,948	)
Proceeds from short-term and long-term deposits		34,795			214,444
Investment in short-term and long-term deposits		(24,254	)		(135,823	)
Purchase of in-process research and development		(6,653	)		—
Purchases of property and equipment		(6,694	)		(5,099	)
Net cash used in investing activities		(532,255	)		(143,076	)

Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of issuance costs		449,635			—
Purchases of capped calls		(55,522	)		—
Proceeds from employee stock plans		16,082			11,537
Taxes paid related to net share settlement of equity awards		(38,295	)		(21,415	)
Repurchase of common stock		—			(43,522	)
Net cash provided by (used in) financing activities		371,900			(53,400	)
Decrease in cash and cash equivalents		(45,155	)		(137,060	)
Cash and cash equivalents at beginning of period		230,740			367,800
Cash and cash equivalents at end of period	$	185,585		$	230,740

Varonis Systems, Inc.
Reconciliation of GAAP Measures to non-GAAP
(in thousands, except share and per share data)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
	Unaudited						Unaudited
Reconciliation to non-GAAP operating income:

GAAP operating loss	$	(17,552	)	$	(5,244	)	$	(117,651	)	$	(117,223	)

Add back:
Stock-based compensation expense		32,569			31,643			126,682			139,819
Payroll tax expenses related to stock-based compensation		206			337			5,618			3,260
Amortization of acquired intangible assets and acquisition-related expenses		119			509			1,263			2,888
Non-GAAP operating income	$	15,342		$	27,245		$	15,912		$	28,744

Reconciliation to non-GAAP net income:

GAAP net loss	$	(12,994	)	$	(898	)	$	(95,765	)	$	(100,916	)

Add back:
Stock-based compensation expense		32,569			31,643			126,682			139,819
Payroll tax expenses related to stock-based compensation		206			337			5,618			3,260
Amortization of acquired intangible assets and acquisition-related expenses		119			509			1,263			2,888
Foreign exchange rate differences, net		3,129			2,290			827			(916	)
Amortization of debt issuance costs		880			381			2,144			1,514
Non-GAAP net income	$	23,909		$	34,262		$	40,769		$	45,649

GAAP weighted average number of shares used in computing net loss per share of common stock – basic and diluted		112,488,376			109,007,859			111,660,541			109,141,894
Non-GAAP weighted average number of shares used in computing net income per share of common stock – basic		112,488,376			109,007,859			111,660,541			109,141,894
Non-GAAP weighted average number of shares used in computing net income per share of common stock – diluted		135,097,388			126,061,869			130,278,825			126,585,777

GAAP net loss per share of common stock – basic and diluted	$	(0.12	)	$	(0.01	)	$	(0.86	)	$	(0.92	)
Non-GAAP net income per share of common stock – basic	$	0.21		$	0.31		$	0.37		$	0.42
Non-GAAP net income per share of common stock – diluted	$	0.18		$	0.27		$	0.31		$	0.36

Varonis Systems, Inc.
Reconciliation of GAAP Measures to non-GAAP
(in millions)

	Twelve Months Ended December 31,
	2024			2023
	Unaudited
Reconciliation to non-GAAP free cash flow:
Net cash provided by operating activities	$	115.2		$	59.4
Purchases of property and equipment		(6.7	)		(5.1	)
Free cash flow	$	108.5		$	54.3

Varonis Systems, Inc.
Reconciliation of GAAP Measures to non-GAAP
(in millions)

	Twelve Months Ended December 31, 2025
	Low			High
Reconciliation to non-GAAP free cash flow:
Net cash provided by operating activities	$	132.0		$	139.0
Purchases of property and equipment		(12.0	)		(14.0	)
Free cash flow	$	120.0		$	125.0

The MIL Network –

February 5, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

Business Outlook

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

Conference Call

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

About Key Tronic

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

Forward-Looking Statements

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

Non-GAAP Financial Measures

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


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

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

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

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

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

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

	Three Months Ended						Six Months Ended
	December 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
GAAP net income (loss)	$	(4,914	)	$	1,084		$	(3,790	)	$	1,419
Gain on insurance proceeds (net of losses)		—			—			—			(431	)
Stock-based compensation expense		16			53			83			112
Write-off of unamortized loan fees		1,012			—			1,012			—
Income tax effect of non-GAAP adjustments (1)		(206	)		(11	)		(219	)		64
Adjusted net income (loss):	$	(4,092	)	$	1,126		$	(2,914	)	$	1,164

Adjusted net income (loss) per share — non-GAAP Diluted	$	(0.38	)	$	0.10		$	(0.27	)	$	0.11
Weighted average shares outstanding — Diluted		10,762			10,889			10,762			10,889

(1) Income tax effects are calculated using an effective tax rate of 20%, which approximates the statutory GAAP tax rate for the presented periods.

The MIL Network –

February 5, 2025

MIL-OSI USA: SBA Opens Additional Recovery Center in Georgia to Assist Debby and Helene Businesses:

Source: United States Small Business Administration

ATLANTA – The U.S. Small Business Administration (SBA) will open a Business Recovery Center (BRC) in Jeff Davis County, Feb. 3, to assist small businesses and private nonprofit (PNP) organizations who sustained physical damage and economic losses caused by Tropical Storm Debby and Hurricane Helene.

Customer service representatives will be on hand at the BRC to answer questions about the SBA’s disaster loan program, assist business owners with completing their disaster loan application, and provide updates on applicant’s status. Walk-ins are accepted, but you can schedule an in-person appointment in advance at appointment.sba.gov. The BRC hours of operation is listed below.

Business Recovery Center (BRC)

Jeff Davis County

Jeff Davis Recreational Department

83 Buford Rd.

Hazlehurst, GA 31539

Hours:  Monday – Friday, 9 a.m. to 6 p.m.,

Saturday, 9 a.m. to 4 p.m., Closed: Sunday

Businesses and PNPs are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

Applicants may be eligible for a loan increase of up to 20% of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include insulating pipes, walls and attics, weather stripping doors and windows, and installing storm windows to help protect property and occupants from future disasters.

The SBA also offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs, such as ongoing operating expenses for small businesses and PNPs. EIDL assistance is available regardless of whether the organization suffered any physical property damage.

Interest rates are as low as 4% for businesses and 3.25% for PNPs, with terms up to 30 years. Interest does not begin to accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms, based on each applicant’s financial condition.

With the changes to FEMA’s Sequence of Delivery, survivors are now encouraged to simultaneously apply for FEMA grants and the SBA low-interest disaster loan assistance to fully recover. FEMA grants are intended to cover necessary expenses and serious needs not paid by insurance or other sources. The SBA disaster loan program is designed for your long-term recovery, to make you whole and get you back to your pre-disaster condition. Do not wait on the decision for a FEMA grant; apply online and receive additional disaster assistance information at sba.gov/disaster.

Applicants may also call the SBA’s Customer Service Center at (800) 659-2955 or send an email to disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

The filing deadline to return applications for physical property damage for Tropical Storm Debby and Hurricane Helene is Feb. 7, 2025. The deadline to return economic injury applications for Tropical Storm Debby is June 24, 2025, and for Hurricane Helene is June 30, 2025.

###

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

MIL OSI USA News –

February 5, 2025

MIL-OSI New Zealand: Proposed changes to cost recovery settings: 2025 annual review

Source: Ministry for Primary Industries

Have your say

The Ministry for Primary Industries (MPI) seeks your feedback on increases to:

the Dairy Standards Processor Levy and the Dairy Exporter Levy
veterinary service fees for establishments
veterinary service fees for live animal imports and exports, including germplasm
the Raw Milk Levy
the Homekill Levy.

We’re also proposing 6 relatively small design changes to ensure appropriate charging for the services provided.

Summaries of the proposals are on this page and full details are in the consultation document.

Consultation opened on 5 February and we must get your submissions by 5pm on 7 March 2025.

Consultation document

Annual review 2025: Proposed changes to MPI’s cost recovery settings [PDF, 1.9 MB]

What’s being proposed?

Fee/levy	Current rate	Proposed rate
Dairy Standards Processor Levy total revenue per annum	$4,279,580	$5,576,268
Dairy Exporter Levy revenue per annum	$834,567	$1,541,334
Establishments fees (vets) per hour	$128.15	$152.42 or $155.80
Establishments fees (supervising vets) per hour	$136.45	$169.89 or $173.71
Veterinary service fees for live animal imports and exports, including germplasm per hour	$186.30	$216.84
Raw Milk Levy per annum	$581.25	2% increases per annum for 3 years. $616.83 by 2027–28.
Homekill Levy per annum	$100	2% increases per annum for 3 years. $106.12 by 2027–28.

Summaries of proposed regulatory design changes to 6 other cost recovery settings

1. Clearance of increased regulatory interest and high regulatory interest foods (for example, frozen berries)

Regulations currently include an administration activity fee for importing of increased regulatory interest food or high regulatory interest food. Under the regulations, charging is specified as being for “each consignment”. The administration activity is often done for groups of consignments, for example, where a group of consignments comes from a single origin, rather than for each consignment within that group. This saves time and reduces the bill for the importer. It is proposed to amend the regulations to clarify that charging is done for “each consignment or group of consignments of a single origin”.

2. Levy waiver relating to the former Meat Industry Initiative Fund

Regulations state amounts to be charged for a now-ended Meat Initiative Fund. A permanent waiver is in place so that these amounts are not actually charged. The design change proposes to replace the waiver with a change to the regulations to clarify that these charges have ceased.

3. Food export exemptions

It is proposed to add a new charge of $135 per application plus $33.75 per quarter hour beyond the first hour to recover the cost of the work undertaken by MPI officials to process exemption requests under section 347 of the Food Act 2014. For example, if food is destined solely for export, it should comply with standards in the destination market and could be given an exemption from meeting New Zealand standards where these differ from those prevailing in the destination market. The new fee will increase revenue by about $34,000 per annum.

4. Agent collection rate (Domestic Food Business Levy)

A change is proposed to clarify that the $11 collection charge for the Domestic Food Business Levy currently described in regulation is GST-exclusive. Charges in regulations are routinely recorded as GST-exclusive because businesses are generally the one charged and claim back GST (the price businesses are concerned about is the GST-exclusive price). This will also future-proof charges in case of future GST changes. This charge was intended to be GST-exclusive.

5. Animal products: charges for use of electronic system

The proposal is to amend the Animal Products (Dairy Industry Fees, Charges, and Levies) Regulations 2015 and Animal Products (Fees, Charges, and Levies) Regulations 2007, to enable certification costs to be recovered at the same level during 2025–26, as the certification system transitions from the AP e-cert system to the new trade certification system. The proposals include removing the “cost per second” component of the charging formula, and to amend the definition of “cost per request” as the cost per second component is not compatible with how the new system will operate.

6. Food Importer Levy

Three changes are proposed to the new Food Importer Levy. The changes improve efficiency around who pays, what data is used in the calculation of the levy, and the due date for levy payment. The changes reflect original intentions when the Food Importer Levy was approved last year, but which were not given effect at the time. The changes are as follows:

extend the levy to importers who are registered but who do not import any amount of food. Despite importing no food, these importers generate some cost by interacting with the food safety system
charge importers at the start of each financial year according to their import amounts from the previous year. This is expected to reduce administration costs for importers and MPI.

We also propose to standardise the date the levy is payable to within 20 working days of the date of the annual levy invoice.

Making a submission

We welcome submissions on the proposals contained in the consultation document. Submissions must be received by 5pm on 7 March 2025.

You can make a submission by completing a submission form and either:

sending it to us by email, or
posting it to us.

Cost recovery submission form [DOCX, 110 KB]

How to submit your completed form by email

Attach your completed form to an email and send it to costrecovery@mpi.govt.nz

How to submit your completed form by post

Post your completed submission form to:

Cost Recovery Directorate I Corporate Branch
Ministry for Primary Industries
PO Box 2526
Wellington 6140.

Submissions are public information

Note that all, part, or a summary of your submission may be published on this website. Most often this happens when we issue a document that reviews the submissions received.

People can also ask for copies of submissions under the Official Information Act 1982 (OIA). The OIA says we must make the content of submissions available unless we have good reason for withholding it. Those reasons are detailed in sections 6 and 9 of the OIA.

If you think there are grounds to withhold specific information from publication, make this clear in your submission or contact us. Reasons may include that it discloses commercially sensitive or personal information. However, any decision MPI makes to withhold details can be reviewed by the Ombudsman, who may direct us to release it.

Official Information Act 1982 – NZ Legislation

MIL OSI New Zealand News –

February 5, 2025

MIL-OSI Asia-Pac: APEDA’s financial assistance schemes boosts 47.3% surge in India’s fruit and vegetable exports

Source: Government of India (2)

APEDA’s financial assistance schemes boosts 47.3% surge in India’s fruit and vegetable exports

APEDA strengthens exporter growth with new schemes for infrastructure, quality, and market development

India’s fruit and vegetable exports reach 123 countries, with 17 new market added in 3 years

Posted On: 04 FEB 2025 7:58PM by PIB Delhi

The Department of Commerce through Agricultural and Processed Food Products Export Development Authority (APEDA) provides financial assistance to its member exporters of APEDA from across the country, for export promotion of its Scheduled products, including for Fruits & vegetables, under Agriculture and Processed Foods Export Promotion Scheme of APEDA for the 15th Finance Commission Cycle (2021-22 to 2025-26) in following three broad areas:

Scheme for infrastructure Development – Financial assistance for setting up of packhouse facilities with packing / grading lines, pre-cooling unit with cold storage and refrigerated transportation etc., cable system for handling of crops like banana, pre-shipment treatment facilities such as irradiation, vapor heat treatment, hot water dip treatment and common infrastructure facilities, reefer vans and missing gap in the existing infrastructure of individual exporters.

Scheme for Quality Development – Financial assistance for purchase of laboratory testing equipment, installation of quality management system, handheld devices for capturing farm level coordinates for traceability and testing of water, soil, residues and pesticides etc.

Scheme for Market Promotion – The assistance covers participation of exporters in international trade fairs, organizing buyer seller meets and developing packaging standards for new products and upgrading the existing packaging standards.

The details of financial assistance guidelines are available at APEDA Website www.apeda.gov.in under the “Scheme” tab.

As a result of these initiatives, there has been a growth of 47.3%, in the volume of exports of fruits and vegetables between the period 2019-20 to 2023-24.

Export data of fruits and vegetables in last five years

Country: All

Product: Fresh Fruits & Vegetables

Value In USD Million

Qty In Thousand MT

Products

2019-20

2020-21

2021-22

2022-23

2023-24

2019-20

2020-21

2021-22

2022-23

2023-24

Fresh Fruits & Vegetables

1,282.43

1,342.13

1,527.63

1,635.95

1,814.58

2,659.48

3,148.08

3,376.25

4,335.68

3,911.95

Source: DGCIS

Growth in terms of Volume in the last five years =47.30%

Growth in terms of Value in the last five years= 41.50 %

The Government maintains the record of total exports of fruits and vegetables from India. The export figures of States are compiled on the basis of the State-of-Origin code reported by the exporters in the shipping bills. Thus, the state wise data of exports of Fruits and vegetables is not available as the same is not validated by DGCI&S. However, the major states producing Fruits and vegetables are Uttar Pradesh, Madhya Pradesh, West Bengal, Maharashtra, Andhra Pradesh, Gujarat, Bihar, Tamil Nadu, Odisha, Karnataka.

India’s Export of Mango and Onion to World (By Variety)
Product	Variety	USD Million					Qty in MT
Product	Variety	2019-20	2020-21	2021-22	2022-23	2023-24	2019-20	2020-21	2021-22	2022-23	2023-24
Mango	Other Mangoes	0.00	25.42	23.48	33.26	36.18	0.00	15795.09	17448.90	17257.28	23786.16
	Kesar	0.00	2.92	6.91	4.97	11.25	0.00	983.73	2319.08	1749.97	3787.01
	Alphonso (Hapus)	0.00	6.08	10.09	7.84	8.68	0.00	3195.86	5994.86	2829.76	2673.39
	Banganapalli	0.00	1.46	3.01	2.00	3.20	0.00	830.55	1674.04	856.91	1081.68
	Chausa	0.00	0.05	0.05	0.03	0.24	0.00	40.98	25.64	19.72	488.26
	Langda	0.00	0.08	0.16	0.12	0.19	0.00	48.99	122.16	70.02	81.94
	Dasheri	0.00	0.09	0.11	0.06	0.17	0.00	49.50	75.92	34.70	75.54
	Totapuri	0.00	0.07	0.17	0.20	0.16	0.00	47.47	151.01	116.60	91.95
	Mallika	0.00	0.03	0.09	0.06	0.07	0.00	41.40	61.16	28.81	38.17
	Mangoes , Fresh/Dried,	56.11	0.00	0.00	0.00	0.00	49658.68	0.00	0.00	0.00	0.00
	Total Mangoes	56.11	36.20	44.07	48.54	60.14	49658.68	21033.57	27872.77	22963.77	32104.10
Onion	Other Onions Fresh of Chilled	0.00	0.00	0.00	0.00	434.78	0.00	0.00	0.00	0.00	1606683.97
	Rose Onions Fresh of Chilled	0.00	0.00	0.00	0.00	38.94	0.00	0.00	0.00	0.00	110755.38
	Onions, Fresh/Chilled	324.20	378.49	460.56	561.38	0.00	1149896.84	1578016.57	1537496.85	2525258.35	0.00
	Total Onions	324.20	378.49	460.56	561.38	473.72	1149896.84	1578016.57	1537496.85	2525258.35	1717439.35
	Source: DGCIS
	Note :- ITC HS Code with () mark of the Commodity is either dropped or re-allocated*

In FY 2023-24, India’s exports of Fresh Fruits and Vegetables reached 123 countries. In the last 3 years, Indian fresh produce entered 17 new markets, some of which are Brazil, Georgia, Uganda, Papua New Guinea, Czech Republic, Uganda, Ghana etc. This has been achieved through a host of measures such as participation in international trade fairs, actively pursuing market access negotiations, organizing buyer seller meets etc.

Department of Commerce is working in close coordination with the MoA&FW in prioritizing agriculture products for market access negotiations to reach new markets. As a result, India has achieved new market access in following commodities in the last three years:

Indian Potatoes and Onions in Serbia
Baby corn and fresh banana in Canada
Pomegranate arils in Australia, USA, Serbia, and New Zealand
Whole pomegranates in Australia via Irradiation treatment

The barriers in accessing new markets differ from product to product and are dynamic in nature. Some of the major barriers in accessing new markets for fruits & vegetables are:

Long geographic distance from India raising the costs of logistics.
Delay in grant of market access by importing countries for certain products.
Stringent Phyto-sanitary requirements imposed by some importing countries.
Delay in registration of enterprises in certain countries.

To address the above issues, various steps are being taken by the Department of Commerce:

For expand market access to our products, MoA&FW & APEDA have identified key products and key countries for intensifying market access negotiations.
Development of Sea protocols for horticulture products to reduce logistic expenses and to enable larger volume of exports.
Regular follow up with the counterpart authorities of importing countries with support of our Missions abroad for registration of facilities and market access negotiations.
For meeting stringent Phyto-sanitary requirements, setting up of traceability system and a system of farmer and facility registration.

***

Abhishek Dayal/Abhijith Narayanan/Asmitabha Manna

(Release ID: 2099814) Visitor Counter : 20

MIL OSI Asia Pacific News –

February 5, 2025

Category: Commerce

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Summaries of proposed regulatory design changes to 6 other cost recovery settings

1. Clearance of increased regulatory interest and high regulatory interest foods (for example, frozen berries)

2. Levy waiver relating to the former Meat Industry Initiative Fund

3. Food export exemptions

4. Agent collection rate (Domestic Food Business Levy)

5. Animal products: charges for use of electronic system

6. Food Importer Levy

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APEDA’s financial assistance schemes boosts 47.3% surge in India’s fruit and vegetable exportsAPEDA strengthens exporter growth with new schemes for infrastructure, quality, and market development

APEDA’s financial assistance schemes boosts 47.3% surge in India’s fruit and vegetable exports

APEDA strengthens exporter growth with new schemes for infrastructure, quality, and market development