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Category: Europe

  • MIL-OSI United Kingdom: NHS patients receive first home-grown blood plasma treatments

    Source: United Kingdom – Executive Government & Departments

    Press release

    NHS patients receive first home-grown blood plasma treatments

    The first NHS patients in a generation have started to receive life saving plasma from the blood of UK donors.

    • Treatments will help save 17,000 NHS patients’ lives every year
    • Move will deliver government’s Plan for Change by building domestic medical supply chains, reducing reliance on imports and with savings between £5 million to £10 million a year

    The first NHS patients in a generation have started to receive life-saving plasma from the blood of UK donors, thanks to a partnership between NHS Blood and Transplant and NHS England. 

    Since a longstanding ban on UK plasma was lifted in 2021, the UK has been building its own supply of plasma medicines amid a global shortage. This will reduce reliance on imports, saving the NHS between £5 million to £10 million per year and strengthening the UK as a powerhouse for life sciences under the government’s Plan for Change.
    Around 17,000 NHS patients with immune deficiencies and rare diseases rely on vital human-donated plasma to save or improve their lives. It is also used in emergency medicine for childbirth and trauma care. 

    Health Minister Baroness Gillian Merron said: 

    This is a significant milestone for the NHS as we take a step toward UK self-sufficiency in these vital medicines. 

    As part of our Plan for Change, we are improving access to life-saving treatments for thousands of NHS patients and strengthening healthcare security.  

    By sourcing our own medicine, we are building a more resilient and domestic medical supply chain and boosting economic growth.

    Sir Stephen Powis, National Medical Director NHS England, said:

    This landmark moment ensures patients relying on crucial plasma-derived medicines will always have access to the treatment they need.

    Thanks to NHS efforts, new plasma-derived products, owned from start to finish by the UK, will reduce our reliance on imported stock and boost the fortitude of hospital supplies.

    Thousands of people with serious and potentially life-threatening conditions, including immunodeficiencies and neurological conditions rely on these products, and strengthening the supply chain of plasma-derived treatments through UK donations will help NHS clinicians ensure these vital medicines are available for all who need them.

    Jill Jones made history by becoming the first patient to be given UK-sourced plasma at John Radcliffe Hospital in Oxford. She has received treatments every three weeks following a diagnosis of Non-Hodgkin lymphoma 20 years ago, and described the infusions as “life-changing”.

    The initiative will also build UK capacity in the global plasma medicines industry, which was valued at over $30 billion in 2023 and is projected to reach $45 billion by 2027. It will help establish the NHS as an engine of economic growth to drive investment in public services and raise living standards for everyone.

    NHS Blood and Transplant (NHSBT) has collected 250,000 litres of plasma from donors in England since 2021. From this, two vital medicines are being produced: immunoglobulins, which treat autoimmune conditions, and albumin, which is essential for surgery and treating liver conditions.

    The NHS plans to reach 25% self-sufficiency in immunoglobulin by the end of 2025, rising to 30-35% in 2031, and 80% self-sufficiency in albumin by next year.

    Global medical supply issues worsened during the COVID-19 pandemic. In July 2024, a national patient safety alert was issued due to critically low blood stocks, demonstrating the importance of building self-sufficiency in the UK.

    Dr Jo Farrar, Chief Executive of NHS Blood and Transplant said:

    Thanks to the incredible generosity of our donors, NHS patients are now receiving life-saving medicines made from UK plasma for the first time in a generation.

    Plasma makes up 55 per cent of our blood and contains antibodies which strengthen or stabilise the immune system. It is used to save lives during childbirth and trauma and is used to treat thousands of patients with life limiting illnesses such as immune deficiencies.

    These lifesaving medicines can only be made from our blood. We need more donors to help save more lives. Please go to blood.co.uk to become a donor.  

    Jill Jones from Oxford, the first patient to receive UK-sourced plasma medicine, said:

    Coming to the Immunology ward is like catching up with friends. The staff are delightful and you get to know staff and patients really well. You have a cup of coffee and chat. Today I was talking about knitting and kittens as I was being transfused!

    Infusions have been life-changing for me in keeping me well. Before I started on them, I was regularly in hospital with infections – which just doesn’t happen now. It’s made a huge and positive difference to my life and my family’s life.

    I felt really privileged today to be the first patient in the UK to be receiving Immunoglobin that was made from UK plasma for the first time in a very long time.

    Previously, the NHS relied solely on imported plasma medicines due to a long-standing ban on using UK plasma.

    The ban was introduced in 1998 as a precautionary measure against Variant Creutzfeldt–Jakob Disease (vCJD), linked to mad cow disease. 
     
    In 2021 following rigorous scientific reviews, the Medicines and Healthcare products Regulatory Agency (MHRA) confirmed plasma from UK donors is safe, supported by robust safety measures. 

    Decades of rigorous research showed no confirmed cases of vCJD transmission through plasma-derived medicines. 

    Plasma comes from blood donations. The plasma in blood contains antibodies that strengthen or stabilise the immune system. The antibodies are separated out and made into immunoglobin medicines that treat people with life-limiting conditions such as immune deficiencies, bleeding disorders, as well as severe burns.

    Notes to editors: 

    • Blood donations can be given at one of 27 donor centres across the country. 

    • First UK-sourced plasma medicines will come from English donations, with Scotland, Wales and Northern Ireland to follow. 

    • Donors can book an appointment at a dedicated Plasma Donor Centres in Birmingham, Reading or Twickenham.  Visit www.blood.co.uk to find out how you can become a donor today. 

    • Plasma is the liquid component of blood that carries vital proteins, antibodies, and clotting factors. It is essential for creating plasma-derived medicines, which treat life-threatening conditions such as immune deficiencies, bleeding disorders, and severe burns. Plasma donation saves thousands of lives each year and is a critical part of modern healthcare. 

    • Two types of medicines are being made – immunoglobulins (used to treat autoimmune conditions and week immune systems) and albumin (used in surgery and to treat burns and liver conditions). This puts the NHS on track to supply 25% of its immunoglobulin needs by the end of 2025, with plans to increase this to 30-35% by 2031 and 80% of albumin by next year.

    • In 1998, the UK imposed a ban on using domestically collected plasma for fractionation, the process of separating plasma into its components. This followed concerns about a potentially increased risk of plasma recipients acquiring the brain disease variant Creutzfeldt-Jakob Disease (vCJD) due to UK plasma donors being exposed to Bovine spongiform encephalopathy (BSE, sometimes referred as Mad Cow Disease) prions from infected cattle.

    • As a result, the UK relied solely on plasma imports, primarily from the United States which increased dependence on international supply chains for plasma-derived medicines. 

    • Rising demand for plasma globally placed additional pressure on supply. 

    • In February 2021, the UK government lifted the ban on using UK-donated plasma for fractionation. This decision followed scientific reviews confirming the safety of plasma collection and manufacturing processes. 
    • Advanced donor screening, pathogen testing, and fractionation techniques now ensure the highest safety standards. 

    Updates to this page

    Published 6 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: New era of rail accountability for passengers as performance data goes live at stations

    Source: United Kingdom – Executive Government & Departments 2

    Press release

    New era of rail accountability for passengers as performance data goes live at stations

    Display screens at stations will help rebuild trust with passengers as we tackle root causes of rail delays and cancellations.

    • data showing the punctuality of trains at individual stations across England available for the first time ever
    • statistics covering over 1,700 stations also show reliability of services
    • fulfils a commitment to transparency and to hold operators to account, improving connectivity and supporting growth as part of the Plan for Change

    Passengers across England can now see how reliable their local train services are, as performance data goes live at over 1,700 stations from today (6 March 2025).

    The data, broken down by operator, shows the percentage of trains cancelled and how punctual trains are at each station, marking the first time that station-level data has been available in the history of the railway. It is now live at major stations through digital screens, where possible, and at most smaller stations, passengers will be able to scan a QR code to see the data online.

    This fulfils a commitment made by the department to be fully transparent with passengers, demonstrating how the railways are working and allowing the public to hold train operators to account as we bring services into public ownership.

    As well as delivering more reliable, better-quality services, these reforms will catalyse economic growth through improved connectivity, delivering on the government’s Plan for Change. By holding operators to account, they will be encouraged to drive up efficiency and productivity – providing better value for money for passengers and driving forward the government’s growth mission by delivering better connectivity.

    The government is determined to drive up performance, and the Rail Minister is meeting with all train operators to address concerns and demand immediate action. In response, the industry has set out a framework with clear areas of focus, including timetable resilience and staffing, to recover performance to acceptable levels.

    Transport Secretary, Heidi Alexander, will visit Reading station today to mark the launch of the displays.

    Transport Secretary, Heidi Alexander, said:

    Today marks the beginning of a new era of rail accountability.

    These displays are a step towards rebuilding trust with passengers using our railways as we continue to tackle the root causes of frustrating delays and cancellations.

    Through fundamental rail reform, we’re sweeping away decades of dysfunctionality – putting passengers first, driving growth through connectivity as part of this government’s Plan for Change.

    Each station’s data can also be found on the ORR’s new data portal, which contains punctuality and reliability information for all stations in Great Britain. The online data is also screen reader compatible for those with accessibility needs.

    The screens also display a short commentary on work underway by the operators and Network Rail to improve performance, informing and assuring passengers of the ongoing work across their area to improve the reliability and efficiency of services. 

    Jacqueline Starr, Chair and Chief Executive of Rail Delivery Group, said:

    We know how frustrating it is for customers when their train is cancelled or delayed. By being transparent with this data and the positive actions we’re taking, it shows how serious the industry is in putting this right by continuing to strive for improvements. 

    This sends a clear message to customers the rail sector is committed to improving punctuality and to find solutions to make train services more reliable.

    Natasha Grice, Director at the independent watchdog, Transport Focus, said: 

    Passengers tell us they want a reliable, on-time train service and will welcome improvements to information about the punctuality of their service and cancellations being shared more transparently. It’s important that the industry uses this information to drive up performance.

    This forms part of a wider overhaul of the railways, which will establish Great British Railways (GBR) as a new body to bring track and train together, to end years of fragmentation and waste. GBR will relentlessly focus on driving up standards for passengers and proposals for how it will run, including plans for a powerful new passenger standards watchdog, are currently under consultation. 

    Separately, the landmark Public Ownership Act will improve services and save taxpayers up to £150 million a year that was previously given to private shareholders, with the first services being brought in as soon as May 2025. 

    The government will deliver change that can be felt, driving growth across the country by ensuring passengers can use the railways to get to work, school, appointments and see friends and family with ease.

    Rail media enquiries

    Media enquiries 0300 7777878

    Switchboard 0300 330 3000

    Updates to this page

    Published 6 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Government bolsters employment support to unlock work for sick and disabled people

    Source: United Kingdom – Executive Government & Departments 2

    Press release

    Government bolsters employment support to unlock work for sick and disabled people

    Work will be unlocked for thousands of sick and disabled people through new measures that will bolster the support offered in Jobcentres and make the welfare system more sustainable, the Department for Work and Pensions has announced today [Thursday 06 March].

    • New plans to improve employment support brought forward ahead of wider reform package to fix broken welfare system. 
    • 1,000 work coaches deployed to deliver intensive employment support to sick and disabled people as part of the government’s Plan for Change which will break down barriers to opportunity.
    • It comes as a new survey reveals scale of the broken system with nearly half of disabled people and those with a health condition saying they don’t trust DWP to support them.

    The plans will see 1,000 existing Work Coaches deployed in 2025/26 to deliver intensive voluntary support to around 65,000 sick and disabled people – helping them to break down barriers to opportunity, drive growth and unlock the benefits of work.

    This intensive support for people on health-related benefits – including those furthest away from work – will see Work Coaches providing tailored and personalised employment support, and help claimants access other support such as writing CVs and interview techniques. They will also access a range of DWP employment programmes to help claimants unlock work based on conversations with their Work Coaches.

    The additional help will be delivered by reprioritising work coach time so they can focus on tackling economic inactivity in order to make the welfare system more sustainable. The 1,000 redeployed Work Coaches are a “downpayment” on wide-ranging plans to overhaul employment support, which are set to be unveiled in just a few weeks’ time. 

    It is part of the Government’s Plan for Change – which will boost living standards and grow the economy by unlocking work for the 2.8 million people who are economically inactive due to long-term sickness – the highest in the G7 – and bring down spending on incapacity benefits which is expected to reach £70 billion by the end of this parliament. 

    It comes as new survey results show the current system isn’t just failing the taxpayer, it’s also failing the people it’s meant to help, with 44% of disabled people and people with a health condition believing DWP does not provide enough support to people who are out of work due to disability, ill health, or a long-term health condition.

    Work and Pensions Secretary, Rt Hon Liz Kendall MP said: 

    We inherited a broken welfare system that is failing sick and disabled people, is bad for the taxpayer, and holding the economy back. 

    For too long, sick and disabled people have been told they can’t work, denied support, and locked out of jobs, with all the benefits that good work brings.

    But many sick and disabled people want and can work, with the right support. And we know that good work is good for people – for their living standards, for their mental and physical health, and for their ability to live independently. 

    We’re determined to fix the broken benefits system as part of our Plan for Change by reforming the welfare system and delivering proper support to help people get into work and get on at work, so we can get Britain working and deliver our ambition of an 80% employment rate.

    The data from the DWP Perceptions Survey – soon to be published in full – also shows:  

    • 35% of disabled people and people with a health condition believe DWP does not provide enough support to people of working age who are out of work, to help them get back into work. 
    • 44% of disabled people and people with a health condition don’t trust the DWP to help people reach their full career potential. 
    • Nearly 2 in 5 (39%) disabled people and people with a health condition do not trust DWP to take its customers’ needs into account in how it provides services. 

    These figures follow recently released data which shows that there are over three million people on Universal Credit with no obligation to engage in work-related activity, despite over a quarter (27%) of health and disability benefit claimants believing that work could be possible in the future if their health improves and 200,000 saying they would be ready to work now.

    Data also shows the number of working-age people on the health element of Universal Credit or claiming Employment Support Allowance (ESA) has risen to 3.1 million, a staggering 319% increase since the pandemic, reflecting the alarming rate at which young and working aged people are increasingly falling out of work and claiming incapacity benefits. 

    Behind each of these statistics is a person with hopes and ambitions, who can provide businesses with much-needed skills and experience, helping to grow our economy.

    To give people the support they deserve, and restore trust and fairness to our welfare system, reforms to the welfare system are expected to be announced in just a few weeks. 

    These reforms will recognise that some people will be unable to work at points in their life and ensure they are provided with support while transforming the broken benefits system that: 

    • Asks people to demonstrate their incapacity to work to access higher benefits, which also then means they fear taking steps to get into work.

    • Is built around a fixed “can versus can’t work” divide that does not reflect the variety of jobs, the reality of fluctuating health conditions, or the potential for people to expand what they can do, with the right support.

    • Directs disabled people or those with a work-limiting health condition to a queue for an assessment, followed by no contact, no expectations, and no support if the state labels them as “unable” to work. 

    • Fails to intervene early to prevent people falling out of work and misses opportunities to support a return to work.

    • Pushes people towards economic inactivity due to the stark and binary divide between benefits rates and conditionality rules for jobseekers compared to those left behind on the health element of Universal Credit.  
    • Has become defined by poor experiences and low trust among many people who use it, particularly on the assessment process.

    The government’s plans to fix the broken benefit system will build on the biggest employment reforms in a generation announced in the Get Britain Working White Paper, which will empower mayors to drive down economic inactivity, deliver a Youth Guarantee so every young person is either earning or learning, and overhaul jobcentres across the country. 

    Former John Lewis boss Sir Charlie Mayfield is leading an independent review investigating how government and employers can work together to help disabled people and those with ill health who may be at risk of falling out work stay on in employment, with the findings of the discovery phase expected in the spring.

    The government is also investing an additional £26 billion to cut NHS waiting lists and get Britain back to health and back to work. 

    The government has already delivered on its pledge, providing two million extra appointments in five months and as a result, around 160,000 fewer patients on waiting lists today than in July.

    Teams of clinicians will also introduce new ways of working at 20 hospital sites in areas with the highest levels of economic inactivity to help patients return to the workforce faster. This is alongside the recruitment of an additional 8,500 mental health workers to ensure mental health is given the same attention as physical health.

    Further information:

    Updates to this page

    Published 6 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI USA: Senator Reverend Warnock Statement on Extreme Tariffs on Everyday Goods, Agriculture

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    Senator Reverend Warnock Statement on Extreme Tariffs on Everyday Goods, Agriculture

    Senator Reverend Warnock is the Ranking Member of the Senate Finance Subcommittee on International Trade, Customs, and Global Competitiveness
    Tariffs will impact cost of produce, canned soda, beer, lumber for housing, aluminum for cars and manufacturing equipment, fertilizer for producers, and more
    Washington, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA), ranking member of the Senate Finance Subcommittee on International Trade, Customs, and Global Competitiveness, issued the following statement on the newly announced 25% tariffs on Canada and Mexico.
    “When I hear from ordinary Georgians, they tell me the cost of everything from housing to prescription drugs to groceries are too expensive. Georgians feel like their dollar isn’t going far enough, and these tariffs only make the problem worse.”
    “These sweeping tariffs and this impending trade war will hurt our farmers, who are now seeing a hike in fertilizer prices going into planting season. With retaliatory tariffs already being implemented, I fear that my years of bipartisan efforts to open up international markets for our farmers will be erased. This will make produce in the grocery stores more expensive and producers losing their farms more likely.”
    “I’m not opposed to all tariffs. They can be a useful tool to protect American jobs and coerce bad actors like China to play by the rules. But these chaotic and impulsive tariffs do nothing but punish Georgians who are just trying to balance their checkbook and save for the future. I will continue to speak out against policies that hurt Georgia families and farmers.”  

    MIL OSI USA News –

  • MIL-OSI USA: PREPARED REMARKS: Sanders, Democratic Senators Force Republicans to Confront Hypocrisy on Ukraine and Putin

    US Senate News:

    Source: United States Senator for Vermont – Bernie Sanders

    WASHINGTON, March 5 – Sen. Bernie Sanders (I-Vt.), alongside Sens. Chuck Schumer (D-N.Y.), Dick Durbin (D-Ill.), Chris Van Hollen (D-Md.), Richard Blumenthal (D-Conn.), Peter Welch (D-Vt.) and Michael Bennet (D-Colo.), today asked for unanimous consent on the Senate floor to pass a series of straightforward resolutions condemning Russia’s illegal, unprovoked invasion of Ukraine. The senators offered six resolutions clarifying that the United States stands with the people of Ukraine in defense of their democracy and condemns the dictator Vladimir Putin’s crimes against humanity. Republicans rose in opposition to every one. 

    The senators’ resolutions are statements of fact and principle, backed by evidence and long-standing American foreign policy, including:

    • Clarifying that Russia started the war against Ukraine.
    • Condemning Putin and Russian forces for their widespread war crimes and crimes against humanity in Ukraine.
    • Condemning Russia’s forcible abduction of at least 20,000 Ukrainian children and calls for their return to their families.
    • Reaffirming the support of the United States for Ukraine’s sovereignty in the face of Russia’s invasion.
    • Restating a simple but fundamental principle of international law and global stability: that you do not take the territory of another country by force.
    • Demanding that Putin immediately withdraw Russian forces from Ukraine, cease his attacks, and end this terrible war.

    Sanders’ remarks on the Senate floor were livestreamed here and are available below. 

    I am here tonight with colleagues who have worked extremely hard to protect the sovereignty of Ukraine and to defend democracy in that country and, in fact, throughout the world. 

    And I thank my colleagues for getting on the floor this evening and for the resolutions that they will be bringing forth. 

    M. President, I am not a historian. But I do know that for the last 250 years, since the inception of our great country, despite our imperfections, the United States has stood in the world as a symbol of democracy. And all over the world people have looked to our country as an example of freedom and self-governance to which the rest of the world could aspire. People have long looked to our Declaration of Independence and Constitution as blueprints for how to establish governments of the people, by the people and for the people. 

    M. President, tragically, all of that is now changing. As President Trump moves this country towards authoritarianism, he is aligning himself with dictators and despots who share his disdain for democracy and the rule of law. 

    Just last week, in a radical departure from long-standing U.S. policy, the Trump administration voted against a United Nations resolution which clearly stated that Russia began the horrific war in Ukraine. 

    That U.N. resolution also called on Russia to withdraw its forces from occupied Ukraine, in line with international law. The resolution was brought forward by our closest allies, including the United Kingdom, Australia, Canada, France, Germany, Japan and dozens of other democratic nations. Ninety-three countries at the U.N. voted YES on that resolution. 

    Rather than side with our long-standing allies to preserve democracy and uphold international law, President Trump voted with authoritarian nations like Russia, North Korea, Iran and Belarus to oppose the resolution. Many of the other opponents of that resolution are undemocratic nations propped up by Russian military aid. 

    But it wasn’t just the U.N. vote. Pathetically, President Trump also told an outrageous lie, claiming that it was Ukraine that started the war, not Russia. He also called President Zelensky a dictator, rather than the leader of a democratic nation, as he is. 

    M. President, as we discuss Ukraine tonight, it is terribly important that we not forget who Vladimir Putin is and why he is no friend of the United States, and why we should not be in an alliance with him against Ukraine. 

    Putin is the man who crushed Russia’s movement towards democracy after the end of the Cold War. Putin is a man who steals elections, murders political dissidents and crushes freedom of the press. He has maintained control in Russia by offering the oligarchs there a simple deal: If they grant him absolute power and share the spoils, he would let them steal as much as they wanted from the Russian people. The result: while the vast majority of the Russian population struggles economically, Putin and his fellow oligarchs stash trillions of dollars in offshore tax havens. 

    And so today, 26 years after he took power, Putin is the absolute ruler of Russia. And I think as everyone knows, Russia’s elections are blatantly fraudulent. A sham. 

    And Putin is the man who sparked the bloodiest war in Europe since World War II. 

    More than three years ago, on February 24, 2022, Putin ordered a full-scale invasion of Ukraine, in clear violation of the Charter of the United Nations and international law. Russian land, air and naval forces have attacked and occupied territory across Ukraine. 

    Since that terrible day, more than a million people have been killed or injured because of Putin’s war. Putin’s forces have massacred civilians and kidnapped thousands of Ukrainian children, bringing them back to Russian “re-education” camps. These atrocities led the International Criminal Court to issue an arrest warrant for Putin in 2023 as a war criminal. That’s who we are allying ourselves with. 

    And still, today, Russia continues its attacks, raining down hundreds of missiles and drones on Ukrainian cities. Russian forces illegally occupy about 20 percent of Ukraine’s sovereign territory. 

    M. President, this war could end today if Putin gave up his outrageous effort to conquer a neighboring country. The war could end today. The killing could stop right now, if Putin gave that order. 

    And that, simply, M. President, is what my resolution says to Vladimir Putin: Stop the killing. Obey international law. Withdraw your forces and cease your attacks on Ukraine. And I, honestly, don’t understand how anyone in the United States Senate could object to that simple demand. 

    M. President, now, more than at any time in recent history, it is imperative that the Senate come together in a bipartisan manner to make it clear that we stand for democracy, not authoritarianism; that we stand for international law, not conquest by force; and that we stand with Ukraine and fellow democracies throughout the world, and not with the murderous dictator of Russia. 

    MIL OSI USA News –

  • MIL-OSI USA: Europe Subcommittee Chairman Self Delivers Opening Remarks at Hearing on Turkey

    Source: US House Committee on Foreign Affairs

    Media Contact 202-226-8467

    WASHINGTON, D.C. – Today, House Foreign Affairs Subcommittee on Europe Chairman Keith Self delivered opening remarks at subcommittee hearing titled, “Bridging the Gap: Turkey Between East and West.”

    WATCH HERE

    -Remarks-

    I welcome everyone to the first Europe subcommittee hearing. It is an honor to chair this subcommittee that deals with a dynamic and potentially dangerous environment in a crucial region for U.S. national interests. I look forward to our work as a subcommittee.

    Today, our objective is to examine Turkey’s roles in NATO and necessarily the Middle East, even though this is the Europe Subcommittee.  It will be necessary to look at Turkey’s track record in NATO and the Middle East, in order to gain perspective on their role going forward in both regions. As a NATO member, historically Turkey has operated as a member of the NATO alliance, often aligning their foreign policy interests with the goals of NATO, but in the last decade there have been some actions that don’t line up with the NATO goals.  

    Take for example the invasion of Ukraine in 2022 and the barbaric October 7th attacks on Israel in 2023. While Turkey supports most of the agenda within the NATO alliance, it did operate as NATO’s lone member refusing to condemn the actions of nefarious players in the Middle East. The world is changing quickly and Turkey’s geographic location places it at the epicenter of the most tumultuous regions as conflicts rage in Europe and the Middle East. Turkey has also assumed the position of power broker in the vacuum created by Syria’s regime change but is vexed by their unresolved issues with the Kurds going forward. The world, particularly the United States, is watching closely as Turkey decides rather or not to ease tensions with the Kurds.  America has relied on the Kurds partnership in the region and opposition to their success will be a major sticking point in Turkey’s relationship with the United States. 

    Turkey is also unique in that geographically it straddles both Europe and Asia.  It is a prominent member of the Minerals Security Partnership and could be a strategic partner for the West by operating as an alternative to Beijing. Recently, Turkey laid claim to one of the largest rare-earth element reserves in the world with a rare earth 694-million ton deposit.

    Historically, Turkey was the anchor for NATO’s Southeast corner against the old Soviet Union, but over the past decade Turkey’s commitment to anchoring that region has begun to crack. They have the second largest military in NATO – only behind the United States – which makes Turkey a key asset to the alliance, but their geographic location also makes them vulnerable to bad actors in the region. 

    I look forward to hearing testimony from our three experts today as they share their views on Turkey’s role in both Europe and the Middle East.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Cornyn, Markey Reintroduce Legislation to Fund Sea Turtle Research and Rescue Assistance

    US Senate News:

    Source: United States Senator for Texas John Cornyn

    Senators John Cornyn (R-TX) and Edward J. Markey (D-MA) reintroduced their bipartisan and bicameral Sea Turtle Rescue Assistance and Rehabilitation Act, legislation to establish funding at the Department of Commerce for the rescue, recovery and research of sea turtles in Texas and across the United States. Text of the bill can be found, here.

    “Sea turtle strandings are rising at an alarming rate along the Texas Gulf Coast,” said Sen. Cornyn. “This bill would help identify the causes of these strandings and invest in rescue and recovery efforts to better protect Texas’ endangered and storied sea turtle population.”

    “Sea turtles are the canaries in the coal mine. Right now, every known species of sea turtles found in US waters is either threatened or endangered and faces extinction and environmental wipeout due to the human-caused climate crisis. We have the responsibility to act,” said Sen. Markey. “I am reintroducing the Sea Turtle Rescue Assistance Act to financially support ongoing rescue and rehabilitation efforts of our shelled friends.” 

    The legislation is co-sponsored by Senators Chris Van Hollen (D-MD), Lindsey Graham (R-SC), Cory Booker (D-NJ, and Tom Tillis (R-NC). In January, Representative Bill Keating (MA-09) introduced companion legislation in the House of Representatives.
     

    Background:

    In 2000, fewer than 50 sea turtles were found stranded on the beaches of Cape Cod; by 2022, that number had skyrocketed to 866. During the 2021 cold snap in Texas, more than 12,100 turtles were cold-stunned, and rescue organizations were able to save and return only 4,000 of the stranded turtles to the wild. Rescue efforts are predominantly volunteer led and underfunded despite sea turtles facing increasing environmental and human-caused threats that make strandings more likely, including rapid temperature changes, red tide events, and entanglement in marine debris. This bill would provide stability and support to efforts that rehabilitate and aid in the recovery of sea turtles along the coastal US. Specifically, the Sea Turtle Rescue Assistance Act would create a new grant program to fund rescue, recovery, and research of sea turtles in the U.S., and authorize $5 million annually for awarding of grants to further that purpose from 2025 through 2030. 

    The Sea Turtle Rescue Assistance and Rehabilitation Act is endorsed by the Association of Zoos and Aquariums, the New England Aquarium, the National Aquarium, ABQ BioPark, Acadia Institute of Oceanography, Adventure Aquarium, Allied Whale – College of the Atlantic, Assateague Coastal Trust, Atlantic Marine Conservation Society, Aquarium of the Pacific, Arizona-Sonora Desert Museum, Audubon Nature Institute, Bird River Beach Community Association, Blank Park Zoo, Brevard Zoo / East Coast Zoological Park, Brookfield Zoo Chicago, Buttonwood Park Zoo, Central Florida Zoo & Botanical Gardens, Chattanooga Zoo at Warner Park, Cincinnati Zoo & Botanical Garden, Citizens Campaign for the Environment, Clearwater Marine Aquarium, Cleveland Metroparks Zoo, Coastal Research and Education Society of Long Island, Columbus Zoo and Aquarium, Connecticut’s Beardsley Zoo, Conservation Council For Hawaii, El Paso Zoo and Botanical Garden, Fort Wayne Children’s Zoo, Georgia Aquarium, Georgia Sea Turtle Center / Jekyll Island Authority, Georgia Wildlife Federation, Gladys Porter Zoo, Gulf World Marine Institute, Healthy Ocean Coalition, Houston Zoo, International Fund for Animal Welfare (IFAW), Jenkinson’s Aquarium, John Ball Zoo, John G. Shedd Aquarium, Kansas City Zoo, Karen Beasley Sea Turtle Rescue & Rehabilitation Center, Loggerhead Marinelife Center, Louisiana Wildlife Federation, Marine Education – Research & Rehabilitation Institute, Inc. (MERR), Marine Conservation Institute, Marine Mammal Alliance Nantucket, Maryland Zoo in Baltimore, Mass Audubon, Maui Ocean Center Marine Institute, Monterey Bay Aquarium, Mystic Aquarium, National Marine Life Center, National Wildlife Federation, Natural Resources Defense Council, Newport Aquarium, New York Marine Rescue Center, North Carolina Aquariums, North Carolina Wildlife Federation, OdySea Aquarium, Oregon Coast Aquarium, Pittsburgh Zoo & Aquarium, Racine Zoo, Roger Williams Park Zoo, Saint Louis Zoo, SEA LIFE Aquariums, Sea Turtle Recovery, Inc., Seattle Aquarium, Seatuck Environmental Association, SeaWorld Parks, Sociedad Ornitologica Puertorriquena Inc., South Carolina Aquarium, South Carolina Wildlife Federation, Sunset Zoo, Surfrider Foundation, Texas Conservation Alliance, Texas Sealife Center, Texas State Aquarium, The Florida Aquarium, The Institute for Marine Mammal Studies, The Living Desert Zoo and Gardens, The Maritime Aquarium at Norwalk, The Ocean Project, The Turtle Hospital, Upwell Turtles, Vancouver Aquarium, Virgin Islands Conservation Society, Virginia Aquarium & Marine Science Center, Whitney Lab for Marine Bioscience at University of Florida, WIDECAST: Wider Caribbean Sea Turtle Conservation Network, Wildlife Restoration Foundation, and Woodland Park Zoo. 

    “We are grateful for Sen. Markey’s continued partnership as he reintroduces the Sea Turtle Rescue Assistance and Rehabilitation Act of 2025 in the U.S. Senate. Each year, the New England Aquarium rescues and rehabilitates hundreds of cold-stunned sea turtles that wash onto the beaches of Cape Cod Bay. This bill would help fill a critical gap in sea turtle conservation efforts by providing much-needed financial support to organizations across the country like ours that help return these endangered animals to the ocean,” said Vikki N. Spruill, President and CEO of the New England Aquarium. 

    “The National Aquarium applauds the reintroduction of the bicameral, bipartisan Sea Turtle Rescue Assistance and Rehabilitation Act. We are proud to be part of the nationwide network of organizations engaged in sea turtle conservation and in educating the public on the challenges facing these threatened and endangered species. Sea turtle strandings are on the rise, as are the expenses related to rescuing, rehabilitating and releasing them back to their ocean home. The level of voluntary contribution from stranding network partners is not sustainable. We thank the champions in the House and Senate for their leadership in creating a much-needed federal grant program to support this important work,” said John Racanelli, President & CEO of the National Aquarium. 

    “Each year, aquariums, zoos and other organizations selflessly rescue and rehabilitate thousands of stranded and injured sea turtles with little to no federal support. They do it because it is the right thing to do,” said Dan Ashe, President and CEO of the Association of Zoos and Aquariums. “This bipartisan Sea Turtle Rescue Assistance and Rehabilitation Act would help to fill a critical gap in support for these federally protected sea turtles.” 

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Security and growth at the centre of the UK-Ireland Summit

    Source: United Kingdom – Executive Government & Departments

    Press release

    Security and growth at the centre of the UK-Ireland Summit

    National security, growth and energy security will be top of the agenda at the first annual UK-Ireland Summit tomorrow as the Prime Minister underscores the importance of delivering for the people of the UK.

    • Ensuring peace, prosperity and security in Europe and around the world will be at the heart of discussions with Taoiseach Micheál Martin at the UK-Ireland Summit  
    • Comes as new UK-Irish cooperation cuts red tape for offshore energy developers in the Irish and Celtic Seas – delivering greater economic security for the hardworking British people 
    • New Irish investments, worth £185.5 million, set to see thousands of jobs created across the country

    National security, growth and energy security will be top of the agenda at the first annual UK-Ireland Summit tomorrow as the Prime Minister underscores the importance of delivering for the people of the UK.  

    The meeting comes after the Prime Minister hosted 18 leaders in London on Sunday where he reiterated the UK’s unwavering support for Ukraine and European security.    As part of that commitment, tomorrow the two leaders will announce closer collaboration on energy security to harness the full potential of the Irish and Celtic seas.   

    Through a new data sharing arrangement, the UK and Irish governments will lay the groundwork for commercial developers to increase offshore energy by cutting red tape and minimising the burden of maritime and environmental consent processes for developers.  

    This will speed up developments and mobilise investments in offshore energy infrastructure.

    This new collaboration will increase renewable energy production and enhance the UK’s energy security, delivering on this Government’s Plan for Change.

    Prime Minister Keir Starmer said:    

    Energy security and national security are two sides of the same coin, that is why we must work with our allies and partners across the world to protect the hardworking British people from external factors driving up household bills. 

    As our closest neighbour our partnership with Ireland is testament to the importance of working with international partners to deliver for people at home.  

    Now more than ever we must work with likeminded partners in the pursuit of global peace, prosperity and security.

    Tomorrow, the Prime Minister and Taoiseach will host a joint business roundtable with industry leaders and businesses across tech, finance, clean energy, manufacturing and construction from the UK and Ireland. The discussion will focus on potential opportunities for growth and investment, and how the UK and Ireland can work together to build an even more resilient and successful trading relationship.   They will also discuss how both countries can work closer together on renewable energy, tech, AI and security. 

    As part of tomorrow’s summit, the UK has welcomed new Irish investments worth £185.5 million creating 2,540 jobs across the country from Version 1, Applegreen, Omniplex, Galvia, Buymedia, Uniquely, Walsh Mushrooms and PM Group. From Evesham to Edinburgh, new investments show confidence in the UK as an attractive place to invest and delivers on the government’s Plan for Change to kickstart economic growth.    

    The UK will also announce that W.H. Davis, part of Buckland Group, has won a £100 million contract with Irish Rail supporting their investment in railway infrastructure in Ireland. 

    Ireland is the UK’s 6th largest trading partner with the trading relationship worth nearly £80 billion last year across sectors including renewable energy, life sciences, creative industries and tech.      

    Tomorrow’s events follow a cultural reception hosted by the Prime Minister and Taoiseach this evening, with representatives from both the UK and Ireland showcasing the world-class talent on both sides of the Irish sea.  

    After the summit, the Prime Minister will travel to a defence company to meet employees and apprentices working in the national security sector.

    Visit comes after the Prime Minister’s landmark announcement made last week on increasing defence spending to 2.5% of GDP by April 2027.   

    In 2023-24, defence spending supported over 430,000 jobs across the UK, the equivalent to one in every 60, with 16,900 in the North West. 

    Updates to this page

    Published 5 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI Russia: Government meeting (2025, No. 7)

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    1. On the draft federal law “On ratification of the Agreement between the Government of the Russian Federation, the Central Bank of the Russian Federation and the Government of the Republic of Belarus, the National Bank of the Republic of Belarus on cooperation and exchange of information, including confidential information, in the field of supervision and (or) control over the financial market”

    The bill aims to ratify the agreement signed in Moscow on August 6, 2024.

    2. On amendments to certain acts of the Government of the Russian Federation (in terms of amendments to the Regulation on the Government Commission for the Development of Housing Construction and the Assessment of the Efficiency of the Use of Land Plots Owned by the Russian Federation)

    The draft act is aimed at granting the commission the authority to make decisions on the transfer of federal property to another level of public ownership.

    On Amendments to Certain Acts of the Government of the Russian Federation (in terms of amendments to the Regulation on the Government Commission for the Development of Housing Construction and the Assessment of the Efficiency of the Use of Land Plots Owned by the Russian Federation)

    The draft act is aimed at granting the commission the authority to make decisions on the transfer of federal property to another level of public ownership.

    3. On the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation” (in terms of improving the submission of reports by non-profit organizations)

    The bill is aimed at simplifying the procedure for submitting reports by non-profit organizations, including charitable, volunteer and socially oriented NPOs.

    4. On Amendments to the Resolution of the Government of the Russian Federation of July 28, 2018 No. 885 (in terms of amending the Regulation on the Federal Service for Supervision in Education and Science)

    The draft resolution is aimed at empowering Rosobrnadzor to determine the minimum number of points confirming successful completion of testing in a state or municipal general education organization by foreign citizens and stateless persons on knowledge of the Russian language, sufficient for mastering educational programs of primary general, basic general and secondary general education.

    Moscow, March 5, 2025

    The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI New Zealand: Consumer NZ calls for an end to the surcharge “swindle”

    Source: Consumer NZ

    Consumer NZ is calling on the Commerce Commission to consider a ban on card payment surcharges due to growing concerns about excessive and hidden fees.

    While the Commission is considering lowering interchange fees – to reduce merchants’ costs for accepting card payments, – Consumer says there’s no guarantee this will reduce card surcharges for consumers, and that should be the priority.  

    Currently, there are no regulations in New Zealand on surcharges, only guidelines. The guidelines recommend surcharges be transparent, avoidable and not excessive. Unfortunately, these recommendations are often ignored, to the detriment of shoppers.
     
    “The surcharging situation in New Zealand is a mess. We have received hundreds of complaints showing merchants are not complying with the guidelines. It’s time to introduce new surcharge rules,” says Consumer acting head of research and advocacy, Jessica Walker.  

    Although the Commission has said it will consider some form of surcharge regulation, an outright ban doesn’t appear to be one of the options being considered. Yet Consumer thinks a ban would be a simple and effective solution, with the benefits outweighing the risks.  
     
    “Less thought would be required about what card to use, whether to swipe, insert or tap; what the surcharge amount is and whether there’s a way to avoid the surcharge.
     
    “You could just leave the house with your phone in your pocket, knowing you wouldn’t have to pay a hefty surcharge for the convenience of not carrying any cards. A ban makes things simpler for merchants too,” Walker says.  

    Issues with surcharging

    Complaints to Consumer about surcharges include:

    Excessive fees: Merchants are charging well over what it costs them to accept the card payment. In the worst cases, card payment surcharges have exceeded 20%. The Commission estimates New Zealanders are paying up to $65 million per year in excessive surcharges, with Mastercard estimating this figure to be $90 million.  

    Lack of transparency: Some merchants don’t mention the fact they add surcharges. Others have terminals that simply state “surcharge applies”, without specifying the amount.

    Fixed fees: Some merchants charge flat fees rather than percentages, which don’t always reflect their actual costs.

    Hidden fees: Additional costs, like service fees, are often bundled with surcharges, confusing consumers.

    To address these issues, Consumer is calling on the Commission to consider a ban on surcharges.  

    The benefits of a surcharge ban  

    Transparency: A surcharge ban would eliminate unclear and hidden fees, allowing consumers to more easily compare prices.

    Consistency: Consumers would have a consistent experience across merchants, with no nasty surprises at the counter.

    Simplicity: A ban would be easy for consumers and businesses to understand and easy for the Commission to enforce.

    Fairer: A ban would incentivise merchants to search for better card deals that allow them to reduce their payment costs. While surcharging is allowed, there’s no incentive for merchants to do this. Lower interchange fees also mean businesses could more easily absorb payment costs.

    Encourages competition: Transparent pricing would allow consumers to shop around more easily, fostering competition.

    Alignment with other jurisdictions: The United Kingdom and European Union have banned surcharges, proving such a ban can work.

    The case for banning surcharges in New Zealand is strong.

    Consumer lodged a submission with the Commission this week supporting further interchange regulation and calling for the Commission to consider a ban on surcharges.  

    We urge anyone else who is fed up with surcharges to let the Commission know by 5pm on 18 March 2025 using this simple online form: https://consumernz.cmail20.com/t/i-l-fdykily-ijjdkdttjk-j/

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Consumer NZ calls for an end to the surcharge “swindle”

    Source: Consumer NZ

    Consumer NZ is calling on the Commerce Commission to consider a ban on card payment surcharges due to growing concerns about excessive and hidden fees.

    While the Commission is considering lowering interchange fees – to reduce merchants’ costs for accepting card payments, – Consumer says there’s no guarantee this will reduce card surcharges for consumers, and that should be the priority.  

    Currently, there are no regulations in New Zealand on surcharges, only guidelines. The guidelines recommend surcharges be transparent, avoidable and not excessive. Unfortunately, these recommendations are often ignored, to the detriment of shoppers.
     
    “The surcharging situation in New Zealand is a mess. We have received hundreds of complaints showing merchants are not complying with the guidelines. It’s time to introduce new surcharge rules,” says Consumer acting head of research and advocacy, Jessica Walker.  

    Although the Commission has said it will consider some form of surcharge regulation, an outright ban doesn’t appear to be one of the options being considered. Yet Consumer thinks a ban would be a simple and effective solution, with the benefits outweighing the risks.  
     
    “Less thought would be required about what card to use, whether to swipe, insert or tap; what the surcharge amount is and whether there’s a way to avoid the surcharge.
     
    “You could just leave the house with your phone in your pocket, knowing you wouldn’t have to pay a hefty surcharge for the convenience of not carrying any cards. A ban makes things simpler for merchants too,” Walker says.  

    Issues with surcharging

    Complaints to Consumer about surcharges include:

    Excessive fees: Merchants are charging well over what it costs them to accept the card payment. In the worst cases, card payment surcharges have exceeded 20%. The Commission estimates New Zealanders are paying up to $65 million per year in excessive surcharges, with Mastercard estimating this figure to be $90 million.  

    Lack of transparency: Some merchants don’t mention the fact they add surcharges. Others have terminals that simply state “surcharge applies”, without specifying the amount.

    Fixed fees: Some merchants charge flat fees rather than percentages, which don’t always reflect their actual costs.

    Hidden fees: Additional costs, like service fees, are often bundled with surcharges, confusing consumers.

    To address these issues, Consumer is calling on the Commission to consider a ban on surcharges.  

    The benefits of a surcharge ban  

    Transparency: A surcharge ban would eliminate unclear and hidden fees, allowing consumers to more easily compare prices.

    Consistency: Consumers would have a consistent experience across merchants, with no nasty surprises at the counter.

    Simplicity: A ban would be easy for consumers and businesses to understand and easy for the Commission to enforce.

    Fairer: A ban would incentivise merchants to search for better card deals that allow them to reduce their payment costs. While surcharging is allowed, there’s no incentive for merchants to do this. Lower interchange fees also mean businesses could more easily absorb payment costs.

    Encourages competition: Transparent pricing would allow consumers to shop around more easily, fostering competition.

    Alignment with other jurisdictions: The United Kingdom and European Union have banned surcharges, proving such a ban can work.

    The case for banning surcharges in New Zealand is strong.

    Consumer lodged a submission with the Commission this week supporting further interchange regulation and calling for the Commission to consider a ban on surcharges.  

    We urge anyone else who is fed up with surcharges to let the Commission know by 5pm on 18 March 2025 using this simple online form: https://consumernz.cmail20.com/t/i-l-fdykily-ijjdkdttjk-j/

    MIL OSI New Zealand News –

  • MIL-OSI Europe: Frontex signs working arrangement with the European Commission to Strengthen Cooperation on Migration Management

    Source: Frontex

    On February 25 Frontex’s Executive Director Hans Leijtens and European Commission’s Acting Director-General for Migration and Home Affairs, Beate Gminder, have signed a working arrangement to enhance cooperation and partnership in the field of migration management. 

    The working arrangement reflects a shared commitment to strengthening situational awareness, early warning, and forecasting.  

    One of the key components of this cooperation is in the context of the Migration Preparedness and Crisis Blueprint Network, which will serve as an operational framework for coordinated responses to migration crises. This network not only enhances monitoring and anticipation but also contributes to building resilience and preparedness in the field of migration.  

    Close collaboration among EU institutions, Member States, and international organisations supporting the effective management of the Union’s external borders will be reinforced with this agreement. It aligns with the comprehensive approach to asylum and migration management as outlined in the Asylum and Migration Management Regulation. 

    The working arrangement represents a strategic advancement in the EU’s ability to manage migratory flows and respond to potential crises with resilience and coordination, reinforcing the Union’s commitment to comprehensive and effective asylum and migration management. 

    MIL OSI Europe News –

  • MIL-Evening Report: Elon Musk thinks the US should leave the UN – what if Trump does it?

    Source: The Conversation (Au and NZ) – By Chris Ogden, Associate Professor in Global Studies, University of Auckland, Waipapa Taumata Rau

    Getty Images

    When Donald Trump’s benefactor and cost-cutter-in-chief Elon Musk recently supported a call for the United States to quit NATO and the United Nations, it should perhaps have been more surprising.

    But the first months of the second Trump presidency have already seen key parts of the current international order undermined. Musk’s position fits a general pattern.

    Aside from the tilt towards a multipolar world order, the US now refuses to recognise the International Criminal Court, has slashed its foreign aid contributions, and has withdrawn from the World Health Organization, the UN Human Rights Council and the Palestinian relief agency UNRWA.

    With Trump’s domestic politics displaying a clear autocratic edge, the rejection of the founding principles and ideals of the UN comes into sharper relief. The intolerant and impatient negotiating approach he displayed with Ukraine’s President Volodymyr Zelensky also belies a disregard for cooperative and consensus-based diplomacy.

    The drive to slash the federal deficit dovetails with this general abandonment of expensive international commitments. If the Trump regime follows through on its apparent strategy of manufacturing crises to advance its agenda, then leaving the UN entirely is a logical next step.

    Undermined ideals

    This is all in stark contrast to the central role the UN has traditionally played within the US-led international order since 1945.

    Along with other institutions, the UN allowed the US to shape the international system in its own image and spread its domestic values and interests across the world. Along with NATO, the UN was designed as a global security institution to produce global stability.

    In theory at least, the political and economic values of the US and other democracies enabled the construction of the postwar order. According to political scientist John Ikenberry, this was based on “multilateralism, alliance partnerships, strategic restraint, cooperative security, and institutional and rule-based relationships”.

    But by the 21st century, US actions had undermined many of these principles. The US-led invasion of Iraq in 2003 bypassed the authority of the UN, causing then secretary-general Kofi Annan to declare that “from the charter point of view [the invasion] was illegal”.

    This undermined the legitimacy of the UN and America’s place within it. But it also diminished the organisation as a force for maintaining international security and national sovereignty in global affairs.

    The subsequent human rights violations by the US through its use of rendition, torture and detention at facilities such as Guantanamo Bay and Abu Ghraib further weakened the UN’s credibility as a protector of liberal international values.

    The US has also been a regular non-payer of UN fees, owing US$2.8 billion in early 2025. And it is one of the lowest contribtuors of military and police personnel to UN peacekeeping operations, despite paying nearly 27% of the overall budget.

    US versus UN

    Since the 1990s, several Republican politicians have argued for the US to withdraw entirely from the UN. In 1997, senator Ron Paul introduced the American Sovereignty Restoration Act, aimed at ending UN membership, expelling the UN headquarters from New York and ending US funding.

    Although it received minimal support and never reached committee hearings, Paul reintroduced the act in every congressional session until his 2011 retirement. It was then taken up by other Republicans, including Paul Broun and Mike Rogers.

    In December 2023, senator Mike Lee and representative Chip Roy led the introduction of the “Disengaging Entirely from the United Nations Debacle (DEFUND) Act”.

    Roy referenced the perceived negative treatment of Israel, the promotion of China, “the propagation of climate hysteria” and the US$12.5 billion in annual payments. Lee added:

    Americans’ hard-earned dollars have been funnelled into initiatives that fly in the face of our values – enabling tyrants, betraying allies, and spreading bigotry.

    Public polling in 2024 also showed only 52% of Americans had a favourable view of the UN. This opposition has deeper historical roots, too.

    In 1920, US isolationists blocked the ratification of the Treaty of Versailles, and with it US participation in the League of Nations (the predecessor to the United Nations). Although the US would interact with the League of Nations until the UN’s formation in 1945, it never became an official member.

    Criticism of the UN also has a bipartisan angle, with the US withdrawing funding of UNRWA in 2024 during Joe Biden’s presidency after Israel accused the agency of links to Hamas.

    A diminished UN

    If Trump harnesses these historical and modern forces to pull the US out of the UN, it would fundamentally – and likely irrevocably – undermine what has been a central pillar of the current international order.

    It would also increase US isolationism, reduce Western influence, and legitimise alternative security bodies. These include the Shanghai Cooperation Organisation, which the US could potentially join, especially given Russia and India are both members.

    More broadly, the reduced influence of the UN will endanger general peace and security in the international sphere, and the wider protection and promotion of human rights.

    There would be greater unpredictability in global affairs, and the world would be a more dangerous place. For countries big and small, a UN without the US will force new strategic calculations and create new alliances and blocs, as the world leaps into the unknown.

    Chris Ogden is a Senior Research Fellow with The Foreign Policy Centre, London.

    – ref. Elon Musk thinks the US should leave the UN – what if Trump does it? – https://theconversation.com/elon-musk-thinks-the-us-should-leave-the-un-what-if-trump-does-it-251483

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI United Kingdom: £2.6m investment package for adult social care as Westminster City Council approves new budget plans | Westminster City Council

    Source: City of Westminster

    Budget approved for improvements to key areas such as adult social care and housing as the council launches its new Fairer Westminster delivery plan for the next three years.

    Westminster City Council has today announced a major new investment of £2.6m to go into cushioning the cost of adult social care – meaning hundreds of adult social care users will now not pay for care, while hard working care assistants will earn more.

    Approved at Full Council (Wednesday March 5), additional funding for adult social care includes £1.4m to increase the pay of the personal care assistants (over 400 staff)  who provide care for Westminster residents through direct payments.

    This will improve the quality of care for care receivers and help more people who use adult social care to employ the carer they want as they will now be able to pay a competitive salary.

    Direct payment recipients will now be able to offer an additional £1.50- £2.00 an hour salary for their personal assistant, so those who opt to receive direct payments to pay for their care needs will see their monthly funds increase.

    An additional £1.2m is also being invested to level up the threshold at which people start to pay for their social care costs so that it is the same for everyone regardless of age. This will help over 460 residents aged under 65 to keep more of their income before paying care bills.

    Colin, a Westminster resident who receives direct payments to support with his care needs, said:

    “At 59, I’ve been fortunate to receive direct payments since graduating from university at 21, enabling me to live independently in my own home and manage my care on my terms.

    “While direct payments may not suit every disabled person due to the associated responsibilities, for those willing to take them on, they can be life-enhancing and transformative.

    “I believe the additional £1.4 million that Westminster City Council is allocating to personal carers’ pay will make the carer role competitive in the labour market once again, making it easier to attract people to work with me.

    “Many disabled people have found it challenging to recruit quality social care workers in recent years.  

    “The increased funding could help me, as an employer, attract candidates from companies like Amazon and McDonald’s, which traditionally offer higher wages.

    “It may also help encourage young people to view social care as a viable career option that offers a respectable and ethical wage. Society’s general underappreciation of care work has made finding and retaining good carers difficult.”

    The approval of the budget at Full Council coincides with the launch of the new Fairer Westminster delivery plan, which outlines the council’s ambitions for the future of the city, and what it wants to achieve to make Westminster a great place to live. Led by voices and priorities from the community, the new plan aims to create meaningful change by providing effective, value-for-money services and accessible opportunities for all, so every resident in the city can thrive. 

    Headline announcements in the approved budget to kick-start the Fairer Westminster delivery plan for 2025 include:

    • An extra £1.2m to tackle rough sleeping and help people off the pavements and into safety.
    • Help to relieve pressure on Westminster’s housing waiting list by investing an additional £140m into buying and expanding temporary accommodation.
    • An extra £1m on cost of living support to turn short-term relief into long-term solutions – such as free school meals during school holidays, supermarket food vouchers, a hardship fund and supporting specialist advice centres.
    • Investing £10m into high streets across Paddington and Bayswater to support local economies and make the areas more dynamic.
    • Investing in new Community hubs such as Ernest Harris House opening this Spring and the Pimlico Community hub at site of the Old Pimlico Library opening in 2026.
    • An additional £2m for anti-social and city management measures across the city, including the recruitment of eight new City Inspectors and doubling the number of CCTV cameras on the streets to 200, including 40 new cameras in the West End.

    The Council will also deliver new savings of nearly £30m by 2028 through measures including greater efficiencies in contracts and the switch to an electric cleaning and waste fleet.

    The budget sets out detailed spending plans for managing more than 20,000 local authority properties under what is called the Housing Revenue Account. The business plan includes total capital investment of £916m over the next 5 years and a total of £2.5bn over the full 30 years. The budget also sets out the business plan for funding the council’s fairer Westminster programme under its capital strategy. The Council is proposing a gross capital programme up to 2038/39 of £2.5bn, partially offset by nearly £1.2bn of income, giving a net budget of £1.3bn.

    Despite the scale of new investment, the Council Tax rise equals just 48p a week for a Band D* property, which means Westminster still has one of the lowest Council Tax rates in the country. The Westminster City Council part of the Council Tax rises by 4.99 per cent overall – 2.99 per cent for council services and 2 per cent for the portion set aside for adult social care.

    • Adults under 65 with disabilities will be able to keep at least £272.69 a week after they have paid their care bills – meaning 147 Westminster residents will now pay less for support and 315 will no longer pay anything at all.
    • The eight City Inspectors are an additional resource to the creation of the street-based intervention team announced in January https://www.westminster.gov.uk/news/new-front-line-team-tackle-street-based-anti-social-behaviour-asb-westminster
    • You can see full details of the approved Budget here: Full Council papers
    • The Fairer Westminster delivery plan and the approved investment is split between; housing, temporary accommodation and rough sleeping; schools, children’s social care and youth services; waste, street cleansing, highways and public protection; public health and adult social care; and enabling services. Read the full Fairer Westminster delivery plan here: Delivering a Fairer Westminster

    MIL OSI United Kingdom –

  • MIL-OSI Russia: Five best articles in Russian for 05.03.2025

    MIL Analysis: Here are the top five Russian language articles published today. The analysis includes five key articles prioritized at the moment.

    Long-term bank deposits are relevant in today’s analysis, but inflation is still high.

    Social infrastructure is productive. The Moscow Metro is improving every year, and it is again celebrating its results for the last two years on the Great Ring Line. In addition, there is a new function on the portal “Recognize Moscow” to facilitate information about the city of Moscow.

    Moscow is preparing for International Women’s Day, and you can already see decorations around the city in the form of posters and exhibitions dedicated to the women of Russia.

    From March 1 to May 31, 2025, applications are accepted for the All-Russian contest called “Golden Names of Higher Education”. The contest is open to faculty members.

    Below you can read one of the entries.

    1. Term matters – Russians are shifting their savings to long deposits.

    How did the bank deposit market change at the beginning of 2025?

    Russians’ demand for long deposits started to grow in January 2025 – customers are trying to lock in a high rate for a long term. According to the data of the platform “Finuservices” for the first two months of the year:

    • the share of deposits for 6 months decreased by 1.5 p.p., amounting to 54% of total deposits – the term is still the most popular;
    • the share of deposits for 3 months decreased by 1.3 p.p. to 25.2%;
    • the share of deposits for 3 months decreased by 1.5 p.p. to 25.2%. – to 25.2%;
    • the share of 1-month deposits also decreased by 1.3 p.p. to 3.1%;
    • the share of deposits for one year, on the contrary, increased by 3 p.p. to 13.7%;
    • deposits with maturity over one year also show insignificant growth.

    2. We invite GUU teachers to participate in the All-Russian contest “Golden Names of Higher Education”.

    From March 1 to May 31, 2025 applications are accepted for participation in the All-Russian Contest “Golden Names of Higher School”. We invite the professorial and pedagogical staff of the State University of Management to participate in the Contest.

    The contest “Golden Names of Higher School” is held by the Interregional Public Organization “League of Higher School Teachers” with the support of the Ministry of Science and Higher Education of the Russian Federation since 2017. It is aimed at identifying and supporting talented teachers and scientists who have made a significant contribution to the development of Russian higher education and science. Over 7 thousand teachers have participated in the Contest throughout its history.

    3. Moscow Metro celebrates two years of through traffic on the Great Ring Line, having served more than 740 million passengers.

    The Moscow Metro celebrates the second anniversary of the launch of through traffic on the Great Ring Line (BCL), a monumental achievement in the city’s transportation infrastructure. Since its full launch two years ago, the BCL has served more than 740 million passengers, changing the way Muscovites travel around the city.

    4. Everything about your capital city: how the personal account of the “Learn Moscow” portal has been updated.

    A new function has appeared in the user’s personal cabinet on the “Learn Moscow” portal. Now in the “Favorites” section you can create your own selections of online routes, articles about museums, monuments and buildings, as well as materials about people who have left their mark on the culture and history of the capital. This will make it easier for users to systematize information about the places they want to visit and find the content they like faster.

    5. “Such different girls, girls, women”: Glavarkhiv invites to the exhibition for March 8.

    The exhibition “Such Different Girls, Girls, Women” dedicated to International Women’s Day opened on Chistoprudny Boulevard and in Ekaterininsky Park. The exhibition includes photographs from the funds of the Moscow Glavarkhiv from the 1900s to the 1980s. The photos depict girls of different professions. The exhibition can be viewed until April 4.

    Learn more about MIL’s content and data services by visiting milnz.co.nz.

    Regards MIL!

    MIL OSI Russia News –

  • MIL-OSI: Descartes Announces Fiscal 2025 Fourth Quarter and Annual Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Record Income from Operations

    WATERLOO, Ontario and ATLANTA, March 05, 2025 (GLOBE NEWSWIRE) — The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2025 fourth quarter (Q4FY25) and year (FY25) ended January 31, 2025. All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).

    “Fiscal 2025 was another year of growth for Descartes, highlighted by the addition of numerous complementary services to the Global Logistics Network,” said Edward J. Ryan, Descartes’ CEO. “We believe these investments can help shippers, carriers, and logistics services providers manage the increased uncertainty and complexity that’s recently been introduced to the global trade environment. Our customers benefit from our diversity in international and domestic supply chains, our expertise with tariffs, sanctions and other global trade issues, and our expansive roster of connected trading partners as they navigate a quickly evolving trade landscape.”

    FY25 Financial Results
    As described in more detail below, key financial highlights for Descartes’ FY25 included:

    • Revenues of $651.0 million, up 14% from $572.9 million in the same period a year ago (FY24);
    • Revenues were comprised of services revenues of $590.2 million (91% of total revenues), professional services and other revenues of $55.1 million (8% of total revenues) and license revenues of $5.7 million (1% of total revenues). Services revenues were up 13% from $520.9 million in FY24;
    • Cash provided by operating activities of $219.3 million, up 6% from $207.7 million in FY24. Cash provided by operating activities was negatively impacted in FY25 by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition;
    • Income from operations of $181.1 million, up 27% from $142.8 million in FY24;
    • Net income of $143.3 million, up 24% from $115.9 million in FY24. Net income as a percentage of revenues was 22%, compared to 20% in FY24;
    • Earnings per share on a diluted basis of $1.64, up 22% from $1.34 in FY24; and
    • Adjusted EBITDA of $284.7 million, up 15% from $247.5 million in FY24. Adjusted EBITDA as a percentage of revenues was 44%, compared to 43% in FY24.

    Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). These items are considered by management to be outside Descartes’ ongoing operational results. We define Adjusted EBITDA as a percentage of revenues as the quotient, expressed as a percentage, from dividing Adjusted EBITDA for a period by revenues for the corresponding period. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release.

    The following table summarizes Descartes’ results in the categories specified below over FY25 and FY24 (dollar amounts in millions):

      FY25
    		   FY24  
    Revenues 651.0   572.9  
    Services revenues 590.2   520.9  
    Gross margin 76 % 76 %
    Cash provided by operating activities* 219.3   207.7  
    Income from operations 181.1   142.8  
    Net income 143.3   115.9  
    Net income as a % of revenues 22 % 20 %
    Earnings per diluted share 1.64   1.34  
    Adjusted EBITDA 284.7   247.5  
    Adjusted EBITDA as a % of revenues 44 % 43 %
             

    (*) FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

    Q4FY25 Financial Results
    As described in more detail below, key financial highlights for Q4FY25 included:

    • Revenues of $167.5 million, up 13% from $148.2 million in the fourth quarter of fiscal 2024 (Q4FY24) and down from $168.8 million in the previous quarter (Q3FY25);
    • Revenues were comprised of services revenues of $156.5 million (93% of total revenues), professional services and other revenues of $10.7 million (6% of total revenues) and license revenues of $0.3 million (1% of total revenues). Services revenues were up 15% from $135.7 million in Q4FY24 and up 5% from $149.7 million in Q3FY25;
    • Cash provided by operating activities of $60.7 million, up 19% from $50.8 million in Q4FY24 and up 1% from $60.1 million in Q3FY25;
    • Income from operations of $47.1 million, up 27% from $37.0 million in Q4FY24 and up 3% from $45.8 million in Q3FY25;
    • Net income of $37.4 million, up 18% from $31.8 million in Q4FY24 and up 2% from $36.6 million in Q3FY25. Net income as a percentage of revenues was 22%, compared to 21% in Q4FY24 and 22% in Q3FY25;
    • Earnings per share on a diluted basis of $0.43, up 16% from $0.37 in Q4FY24 and up 2% from $0.42 in Q3FY25; and
    • Adjusted EBITDA of $75.0 million, up 14% from $65.7 million in Q4FY24 and up 4% from $72.1 million in Q3FY25. Adjusted EBITDA as a percentage of revenues was 45%, compared to 44% in Q4FY24 and 43% in Q3FY25, respectively.

    The following table summarizes Descartes’ results in the categories specified below over the past 5 fiscal quarters (unaudited; dollar amounts, other than per share amounts, in millions):

      Q4
    FY25    		   Q3
    FY25    		   Q2
    FY25    		   Q1
    FY25    		   Q4
    FY24    		  
    Revenues 167.5   168.8   163.4   151.3   148.2  
    Services revenues 156.5   149.7   146.2   137.8   135.7  
    Gross margin 76 % 74 % 75 % 77 % 76 %
    Cash provided by operating activities* 60.7   60.1   34.7   63.7   50.8  
    Income from operations 47.1   45.8   45.9   42.4   37.0  
    Net income 37.4   36.6   34.7   34.7   31.8  
    Net income as a % of revenues 22 % 22 % 21 % 23 % 21 %
    Earnings per diluted share 0.43   0.42   0.40   0.40   0.37  
    Adjusted EBITDA 75.0   72.1   70.6   67.0   65.7  
    Adjusted EBITDA as a % of revenues 45 % 43 % 43 % 44 % 44 %
                         

    (*) Q2FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

    Cash Position
    At January 31, 2025, Descartes had $236.1 million in cash. Cash increased by $54.8 million in Q4FY25 and decreased by $84.9 million in FY25. The table set forth below provides a summary of cash flows for Q4FY25 and FY25 in millions of dollars:

      Q4FY25   FY25  
    Cash provided by operating activities 60.7   219.3  
    Additions to property and equipment (2.1 ) (6.8 )
    Acquisitions of subsidiaries, net of cash acquired (3.7 ) (290.2 )
    Payment of debt issuance costs   (0.1 )
    Issuances of common shares, net of issuance costs 2.5   12.4  
    Payment of withholding taxes on net share settlements –   (6.7 )
    Payment of contingent consideration –   (9.2 )
    Effect of foreign exchange rate on cash (2.6 ) (3.6 )
    Net change in cash 54.8   (84.9 )
    Cash, beginning of period 181.3   321.0  
    Cash, end of period 236.1   236.1  
             

    Conference Call
    Descartes’ executive management team will hold a conference call to discuss the company’s financial results at 5:30 PM ET on Wednesday, March 5. Designated numbers are +1 289 514 5100 or +1 800 717 1738 for North America Toll-Free, using Passcode 45440#.

    The company will simultaneously conduct an audio webcast on the Descartes website at https://www.descartes.com/who-we-are/investor-relations/financial-information. Phone conference dial-in or webcast login is required approximately 10 minutes beforehand.

    Replays of the conference call will be available until March 12, 2025, by dialing +1 289 819 1325 or Toll-Free for North America using +1 888 660 6264 with Playback Passcode: 45440#. An archived replay of the webcast will be available at https://www.descartes.com/who-we-are/investor-relations/financial-information.

    About Descartes

    Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and X (Twitter).

    Descartes Investor Contact
    Laurie McCauley
    (519) 746-2969
    investor@descartes.com

    Cautionary Statement Regarding Forward-Looking Statements

    This release may contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relates to Descartes’ expectations concerning future revenues and earnings, and our projections for any future reductions in expenses or growth in margins and generation of cash; our assessment of the potential impact of geopolitical events, such as the ongoing conflict between Russia and Ukraine (the “Russia-Ukraine Conflict”), and between Israel and Hamas (“Israel-Hamas Conflict”), or other potentially catastrophic events, on our business, results of operations and financial condition; continued growth and acquisitions including our assessment of any increased opportunity for our products and services as a result of trends in the logistics and supply chain industries; rate of profitable growth and Adjusted EBITDA margin operating range; demand for Descartes’ solutions; growth of Descartes’ Global Logistics Network (“GLN”); customer buying patterns; customer expectations of Descartes; development of the GLN and the benefits thereof to customers; and other matters. These forward-looking statements are based on certain assumptions including the following: global shipment volumes continuing at levels generally consistent with those experienced historically; the Russia-Ukraine Conflict and Israel-Hamas Conflict not having a material negative impact on shipment volumes or on the demand for the products and services of Descartes by its customers and the ability of those customers to continue to pay for those products and services; countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; countries continuing to implement and enforce existing and additional trade restrictions and sanctioned party lists with respect to doing business with certain countries, organizations, entities and individuals; Descartes’ continued operation of a secure and reliable business network; the stability of general economic and market conditions, currency exchange rates, and interest rates; equity and debt markets continuing to provide Descartes with access to capital; Descartes’ continued ability to identify and source attractive and executable business combination opportunities; Descartes’ ability to develop solutions that keep pace with the continuing changes in technology, and our continued compliance with third party intellectual property rights. These assumptions may prove to be inaccurate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes, or developments in Descartes’ business or industry, to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, Descartes’ ability to successfully identify and execute on acquisitions and to integrate acquired businesses and assets, and to predict expenses associated with and revenues from acquisitions; the impact of network failures, information security breaches or other cyber-security threats; disruptions in the movement of freight and a decline in shipment volumes including as a result of contagious illness outbreaks; a deterioration of general economic conditions or instability in the financial markets accompanied by a decrease in spending by our customers; the ability to attract and retain key personnel and the ability to manage the departure of key personnel and the transition of our executive management team; changes in trade or transportation regulations that currently require customers to use services such as those offered by Descartes; changes in customer behaviour and expectations; Descartes’ ability to successfully design and develop enhancements to our products and solutions; departures of key customers; the impact of foreign currency exchange rates; Descartes’ ability to retain or obtain sufficient capital in addition to its debt facility to execute on its business strategy, including its acquisition strategy; disruptions in the movement of freight; the potential for future goodwill or intangible asset impairment as a result of other-than-temporary decreases in Descartes’ market capitalization; and other factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada, including Descartes’ most recently filed Management’s Discussion and Analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

    Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues

    We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with GAAP. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with GAAP. We believe that current shareholders and potential investors in our company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about our company and measuring our operational results.

    The term “Adjusted EBITDA” refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.

    Management considers these non-operating expenses to be outside the scope of Descartes’ ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period. Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with GAAP or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. In particular, we have completed seven acquisitions since the beginning of fiscal 2024 and may complete additional acquisitions in the future that will result in acquisition-related expenses and restructuring charges. As these acquisition-related expenses and restructuring charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.

    The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our audited Consolidated Statements of Operations for FY25 and FY24, which we believe is the most directly comparable GAAP measure.

    (US dollars in millions) FY25   FY24  
    Net income, as reported on Consolidated Statements of Operations 143.3   115.9  
    Adjustments to reconcile to Adjusted EBITDA:    
    Interest expense 1.0   1.4  
    Investment income (11.5 ) (9.7 )
    Income tax expense 48.3   35.2  
    Depreciation expense 5.6   5.5  
    Amortization of intangible assets 69.4   60.5  
    Stock-based compensation and related taxes 21.1   17.1  
    Other charges 7.5   21.6  
    Adjusted EBITDA 284.7   247.5  
         
    Revenues 651.0   572.9  
    Net income as % of revenues 22 % 20 %
    Adjusted EBITDA as % of revenues 44 % 43 %
             

    The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our unaudited Consolidated Statements of Operations for Q4FY25, Q3FY25, Q2FY25, Q1FY25, and Q4FY24, which we believe is the most directly comparable GAAP measure.

    (US dollars in millions) Q4FY25   Q3FY25   Q2FY25   Q1FY25   Q4FY24  
    Net income, as reported on Consolidated Statements of Operations 37.4   36.6   34.7   34.7   31.8  
    Adjustments to reconcile to Adjusted EBITDA:          
    Interest expense 0.2   0.2   0.2   0.3   0.3  
    Investment income (1.9 ) (2.9 ) (2.7 ) (4.1 ) (3.4 )
    Income tax expense 11.4   11.9   13.6   11.5   8.3  
    Depreciation expense 1.5   1.4   1.4   1.4   1.4  
    Amortization of intangible assets 19.4   17.5   17.4   15.0   15.1  
    Stock-based compensation and related taxes 5.4   5.6   5.8   4.3   4.7  
    Other charges 1.6   1.8   0.2   3.9   7.5  
    Adjusted EBITDA 75.0   72.1   70.6   67.0   65.7  
               
    Revenues 167.5   168.8   163.4   151.3   148.2  
    Net income as % of revenues 22 % 22 % 21 % 23 % 21 %
    Adjusted EBITDA as % of revenues 45 % 43 % 43 % 44 % 44 %
               

    The Descartes Systems Group Inc.
    Consolidated Balance Sheets
    (US dollars in thousands; US GAAP)

      January 31,   January 31,  
      2025   2024  
    ASSETS    
    CURRENT ASSETS    
    Cash 236,138   320,952  
    Accounts receivable (net)    
    Trade 53,953   51,569  
    Other 16,931   12,193  
    Prepaid expenses and other 45,544   33,468  
      352,566   418,182  
    OTHER LONG-TERM ASSETS 24,887   24,737  
    PROPERTY AND EQUIPMENT, NET 12,481   11,552  
    RIGHT-OF-USE ASSETS 7,623   6,257  
    DEFERRED INCOME TAXES 3,802   2,097  
    INTANGIBLE ASSETS, NET 321,270   251,047  
    GOODWILL 924,755   760,413  
      1,647,384   1,474,285  
    LIABILITIES AND SHAREHOLDERS’ EQUITY    
    CURRENT LIABILITIES    
    Accounts payable 20,650   17,484  
    Accrued liabilities 79,656   91,824  
    Lease obligations 3,178   3,075  
    Income taxes payable 9,313   6,734  
    Deferred revenue 104,230   84,513  
      217,027   203,630  
    LEASE OBLIGATIONS 4,718   3,903  
    DEFERRED REVENUE 978   1,464  
    INCOME TAXES PAYABLE 5,531   6,153  
    DEFERRED INCOME TAXES 34,127   21,101  
      262,381   236,251  
         
    SHAREHOLDERS’ EQUITY    
    Common shares – unlimited shares authorized; Shares issued and outstanding totaled 85,605,969 at January 31, 2025 (January 31, 2024 – 85,183,455) 568,339   551,164  
    Additional paid-in capital 503,133   494,701  
    Accumulated other comprehensive loss (50,497 ) (28,586 )
    Retained earnings 364,028   220,755  
      1,385,003   1,238,034  
      1,647,384   1,474,285  
             

    The Descartes Systems Group Inc.
    Consolidated Statements of Operations
    (US dollars in thousands, except per share and weighted average share amounts; US GAAP)

      January 31,   January 31,   January 31,  
    Year Ended 2025   2024   2023  
           
    REVENUES 651,000   572,931   486,014  
    COST OF REVENUES 158,574   138,295   113,326  
    GROSS MARGIN 492,426   434,636   372,688  
    EXPENSES      
    Sales and marketing 73,692   68,161   56,573  
    Research and development 95,497   84,103   70,353  
    General and administrative 65,248   57,373   49,710  
    Other charges 7,466   21,649   5,441  
    Amortization of intangible assets 69,399   60,501   60,177  
      311,302   291,787   242,254  
    INCOME FROM OPERATIONS 181,124   142,849   130,434  
    INTEREST EXPENSE (1,004 ) (1,363 ) (1,167 )
    INVESTMENT INCOME 11,513   9,666   4,461  
    INCOME BEFORE INCOME TAXES 191,633   151,152   133,728  
    INCOME TAX EXPENSE (RECOVERY)      
    Current 53,402   41,223   28,248  
    Deferred (5,042 ) (5,978 ) 3,244  
      48,360   35,245   31,492  
    NET INCOME 143,273   115,907   102,236  
    EARNINGS PER SHARE      
    Basic 1.68   1.36   1.21  
    Diluted 1.64   1.34   1.18  
    WEIGHTED AVERAGE SHARES OUTSTANDING (thousands)      
    Basic 85,443   85,068   84,791  
    Diluted 87,323   86,818   86,451  
                 

    The Descartes Systems Group Inc.
    Consolidated Statements of Cash Flows
    (US dollars in thousands; US GAAP)

    Year Ended January 31,   January 31,   January 31,  
      2025   2024   2023  
    OPERATING ACTIVITIES            
    Net income 143,273   115,907   102,236  
    Adjustments to reconcile net income to cash provided by operating activities:      
    Depreciation 5,589   5,474   5,225  
    Amortization of intangible assets 69,399   60,501   60,177  
    Stock-based compensation expense 19,962   16,480   13,667  
    Other non-cash operating activities 23   114   53  
    Deferred tax expense (recovery) (5,042 ) (5,978 ) 3,244  
    Changes in operating assets and liabilities (13,932 ) 15,182   7,793  
    Cash provided by operating activities 219,272   207,680   192,395  
    INVESTING ACTIVITIES      
    Additions to property and equipment (6,743 ) (5,563 ) (6,071 )
    Acquisition of subsidiaries, net of cash acquired (290,204 ) (142,700 ) (115,561 )
    Cash used in investing activities (296,947 ) (148,263 ) (121,632 )
    FINANCING ACTIVITIES      
    Payment of debt issuance costs (53 ) (43 ) (1,118 )
    Issuance of common shares for cash, net of issuance costs 12,391   9,272   1,730  
    Payment of withholding taxes on net share settlements (6,745 ) (4,886 ) –  
    Payment of contingent consideration (9,223 ) (19,084 ) (5,215 )
    Cash used in financing activities (3,630 ) (14,741 ) (4,603 )
    Effect of foreign exchange rate changes on cash (3,509 ) (109 ) (3,212 )
    Increase (decrease) in cash (84,814 ) 44,567   62,948  
    Cash, beginning of year 320,952   276,385   213,437  
    Cash, end of year 236,138   320,952   276,385  
                 

    The MIL Network –

  • MIL-OSI Canada: Budget 2025: Investing in Alberta’s future | Budget 2025 : Investir dans l’avenir de l’Alberta

    As Alberta continues work to address increasing domestic and international economic pressures, Budget 2025 works to strengthen Alberta’s economy. This budget helps build communities, secure Alberta’s southern border and boost investments in the province’s economic future.

    “While we work closely with partners to find solutions to a possible trade conflict, we will continue our work to make sure Alberta’s economy is strong – in and outside of the energy sector – so that we can manage any turbulence that comes our way. Budget 2025 carves our path forward in the face of this uncertainty.”

    Nate Horner, President of Treasury Board and Minister of Finance

    Budget 2025: Supporting a strong workforce

    Alberta’s workforce is the backbone of the provincial economy. Budget 2025 continues the commitment to training and developing a skilled and resilient labour force to further grow Alberta’s economy and help businesses succeed, including: 

    • $26.1 billion over three years from the Capital Plan, to support about 26,500 direct and 12,000 indirect jobs each year through 2027-28.
    • $135 million for skilled trade programs such as apprenticeship and adult learning initiatives to help Albertans gain the skills and training needed for successful careers, and support access to job opportunities.
    • $2 billion in 2025-26 to support and expand early learning and child-care system so parents and caregivers can participate in training, education or work opportunities.  

    Budget 2025: Securing our borders

    • Alberta’s government is committed to being a good neighbour and trading partner, and part of this commitment involves taking measures to secure the Alberta-US border. Budget 2025 includes $29 million in 2025-26 for a new Interdiction Patrol Team within the Alberta Sheriffs to tackle illegal drug and gun smuggling, human trafficking, apprehension of persons attempting to cross the border illegally, and other illegal activities along Alberta’s international land border. Budget 2025 also includes a $15 million investment over two years for three new vehicle inspection stations located near borders to the USA.

    Budget 2025: Investing in post-secondary education

    Budget 2025 invests a total of $7.4 billion in post-secondary education, with an operating budget of $6.6 billion in 2025-26. This includes:

    • $78 million per year over the next three years to create more seats in apprenticeship classes across the province to build skilled trades and apprenticeship education that will respond to the needs of industry, support the economy and connect Albertans with jobs.
    • $113 million to support greater demand for scholarships and the Alberta Student Grant, with $60 million funded from the Alberta Heritage Scholarship Fund.
    • $4 million to the First Nations Colleges Grant which is distributed equally across five colleges in rural and remote Indigenous communities.

    “Our government is ensuring that Alberta students have the skills and training they need to meet the needs of today while preparing for the economy of the future. Budget 2025 makes foundational investments to meet the challenge of a rapidly growing population while supporting a sustainable post-secondary education system.”

    Rajan Sawhney, Minister of Advanced Education

    Budget 2025: Building communities

    Alberta’s vibrant communities make Alberta the best place in Canada to live, work and raise a family. Budget 2025 invests in stronger communities across Alberta, including:

    • $17.2 million to increase grants made to municipalities in lieu of property taxes on government-owned property to 75 per cent, up from the current 50 per cent. By next year, the province will cover 100 per cent of the amount that would be paid if the property was taxable.
    • $820 million this year and $2.5 billion over three years in Local Government Fiscal Framework capital funding to help fund local infrastructure priorities.

    Budget 2025: Supporting trade and diversification

    Alberta continues to champion economic growth and policies that support productivity. Through Budget 2025, Alberta’s government will continue to build on current successes through:

    • Attracting more investment through low corporate income taxes. At eight per cent, Alberta’s corporate income tax rate is 30 per cent lower than the next lowest province.
    • Providing greater incentive for small- and medium-sized firms that increase their spending on research and development, with Alberta’s Innovation Employment Grant.
    • Promoting Alberta as a reliable partner in supporting North American and global energy security to investors. The province will optimize new and existing infrastructure to access new markets for Alberta’s energy and mineral resources.
    • Supporting Alberta’s agriculture producers and value-added processors, addressing barriers to trade by cultivating export markets, and working to increase market access for Alberta products.
    • Reinforcing Alberta as a critical contributor to North American energy security by continuing to advocate for our remarkable energy sector across Canada, the U.S., Germany, Japan and the rest of the world.

    Budget 2025: Investing in business and industry

    Budget 2025 continues to find ways to help Alberta’s economy grow through investments in business and industry and help our economy grow, including:

    • Support to attract investment in Alberta’s energy and mineral resource sector to accelerate opportunities in emerging resources.
    • $45 million over three years for the Investment and Growth Fund to attract investment into Alberta’s economy.
    • $1.8 million in Western Crop Innovations for industry-leading crop research.
    • $780,000 to support small- and medium-sized meat processors.
    • $3.1 million for the University of Calgary’s Faculty of Veterinary Medicine to expand toward a full-service veterinary diagnostic laboratory. This will give livestock producers and vets access to quicker, more affordable livestock diagnostics closer to home.

    “Budget 2025 builds a stronger Alberta by growing industries, creating high-quality jobs and expanding opportunities for workers and families. With strategic investments in innovation, infrastructure and workforce development, Alberta is rising to the challenge, strengthening our province for many years to come.”

    Matt Jones, Minister of Jobs, Economy and Trade

    “We are advancing cutting-edge research in agriculture and supporting small and medium-sized businesses. Additionally, we are strengthening our agricultural infrastructure, ensuring quicker and more affordable services for livestock producers and veterinarians. We’re supporting innovation, attracting investment, and building a resilient economy for the future.”

    RJ Sigurdson, Minister of Agriculture and Irrigation

    Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

    Related information

    • Budget 2025

    Related news

    • Budget 2025: Meeting the challenge (Feb 27, 2025)
    • Budget 2025: Meeting the challenge in health and education (Feb 27, 2025)

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    Le budget de 2025 relève le défi de l’incertitude en matière de commerce et de sécurité en mettant l’accent sur l’économie.

    À mesure que l’Alberta continue de répondre aux pressions économiques intérieures et internationales, le budget de 2025 vise à renforcer l’économie albertaine. Il contribue à bâtir des communautés, à assurer la sécurité de la frontière au sud de la province et à renforcer les investissements dans notre avenir économique.

    « Alors que nous travaillons en étroite collaboration avec des partenaires pour trouver des solutions à un différend commercial potentiel, nous poursuivons notre travail pour nous assurer que l’économie de l’Alberta est forte, dans le secteur de l’énergie et ailleurs, afin de pouvoir gérer toute perturbation. Le budget de 2025 trace la voie à suivre face à cette incertitude. »

    Nate Horner, président du Conseil du Trésor et ministre des Finances

    Budget 2025 : Soutenir une main-d’œuvre solide

    La main-d’œuvre albertaine est l’épine dorsale de l’économie provinciale. Le budget de 2025 maintient l’engagement envers la formation et le perfectionnement d’une main-d’œuvre qualifiée et résiliente de sorte à faire croître l’économie et aider les entreprises à réussir : 

    • 26,1 milliards de dollars sur trois ans provenant du plan d’immobilisations afin d’appuyer environ 26 500 emplois directs et 12 000 emplois indirects chaque année jusqu’en 2027-2028.
    • 135 millions de dollars pour des programmes de métiers spécialisés, comme des initiatives d’apprentissages et d’éducation des adultes de sorte à aider les Albertains à acquérir les compétences et à suivre la formation nécessaires pour mener des carrières fructueuses, ainsi qu’à soutenir l’accès aux possibilités d’emploi.
    • 2 milliards de dollars en 2025-26 pour appuyer et élargir le système d’apprentissage et de garde des jeunes enfants afin que les parents et les gardiens tirent parti de possibilités de formation, d’éducation ou d’emploi.  

    Budget 2025 : Assurer la sécurité de nos frontières

    • Le gouvernement de l’Alberta est résolu à être un bon voisin et un bon partenaire commercial, ce qui implique la prise de mesures pour assurer la sécurité de la frontière entre l’Alberta et les États-Unis. Le budget de 2025 prévoit 29 millions de dollars en 2025-26 pour une nouvelle équipe de « patrouille d’interdiction » (Interdiction Patrol Team) qui fait partie des shérifs de l’Alberta et sera chargée de lutter contre le trafic de drogue et d’armes et la traite de personnes, d’appréhender les personnes qui tentent de traverser la frontière illégalement et de surveiller d’autres activités illégales le long de la frontière internationale de la province. Le budget de 2025 comprend en outre un investissement de 15 millions de dollars sur deux ans pour trois nouveaux postes d’inspection de véhicules près de la frontière des États-Unis.

    Budget 2025 : Investir dans l’enseignement postsecondaire

    Le budget de 2025 investit en tout 7,4 milliards de dollars dans l’enseignement postsecondaire, le budget d’exploitation étant de 6,6 milliards de dollars en 2025-2026. Cette somme comprend :

    • 78 millions de dollars par années sur trois ans pour créer un plus grand nombre de places dans les cours d’apprentissage de toute la province en vue de renforcer les métiers spécialisés et les formations en apprentissage qui répondront aux besoins de l’industrie, soutiendront l’économie et mettront les Albertains en rapport avec des emplois.
    • 113 millions de dollars pour contribuer à satisfaire à la demande croissante de bourses et appuyer la bourse aux étudiants de l’Alberta (Alberta Student Grant), dont 60 millions de dollars provenant de l’Alberta Heritage Scholarship Fund.
    • 4 millions de dollars pour la subvention aux collèges des Premières Nations (First Nations Colleges Grant), cette somme étant répartie également entre cinq collèges dans des communautés autochtones rurales et éloignées.

    « Notre gouvernement veille à ce que les étudiants en Alberta possèdent les compétences et la formation nécessaires pour répondre aux besoins actuels, tout en se préparant à l’économie future. Le budget de 2025 réalise des investissements fondamentaux de sorte à relever les défis posés par une population en pleine croissance, tout en appuyant un système d’éducation postsecondaire durable. »

    Rajan Sawhney, ministre de l’Enseignement postsecondaire

    Budget 2025 : Bâtir des communautés

    Les communautés dynamiques de notre province font de l’Alberta le meilleur endroit au Canada où vivre, travailler et élever une famille. Le budget de 2025 investit dans des communautés plus fortes partout en Alberta :

    • 17,2 millions de dollars pour augmenter de 50 % à 75 % les subventions accordées aux municipalités en remplacement d’impôts fonciers à l’égard des propriétés qui appartiennent au gouvernement. D’ici l’année prochaine, la province couvrira 100 $ du montant qui serait versé si la propriété était imposable.
    • 820 millions de dollars cette année et 2,5 milliards de dollars sur trois ans en dépenses en capital du cadre fiscal des administrations locales (Local Government Fiscal Framework) afin d’aider à financer les travaux d’infrastructures prioritaires.

    Budget 2025 : Soutenir le commerce et la diversification

    L’Alberta continue de favoriser la croissance économique et des politiques qui appuient la productivité. Par l’entremise du budget de 2025, le gouvernement de l’Alberta continuera de tirer parti des réussites actuelles en faisant ce qui suit :

    • Attirer plus d’investissements grâce à un faible taux d’imposition sur le revenu des sociétés. En Alberta, le taux de 8 % est de 30 % inférieur à celui de la province qui se classe deuxième.
    • Offrir de plus grands stimulants aux petites et moyennes entreprises qui augmentent leurs dépenses en recherche et développement, par l’entremise de la subvention pour l’emploi et l’innovation (Alberta’s Innovation Employment Grant).
    • Promouvoir l’Alberta en tant que partenaire fiable pour soutenir la sécurité énergétique nord-américaine et mondiale auprès des investisseurs. La province optimisera les infrastructures nouvelles et existantes afin d’accéder à de nouveaux marchés pour les ressources énergétiques et minérales de l’Alberta.
    • Soutenir les producteurs agricoles albertains et les transformateurs à valeur ajoutée de l’Alberta, s’attaquer aux obstacles au commerce en cultivant les marchés d’exportation et s’employer à améliorer l’accès au marché pour les produits de l’Alberta.
    • Renforcer la position de l’Alberta en tant que contributrice essentielle à la sécurité énergétique de l’Amérique du Nord en continuant de promouvoir notre secteur énergétique remarquable au Canada, aux États-Unis, en Allemagne, au Japon et dans le reste du monde.

    Budget 2025 : Investir dans les entreprises et les industries

    Le budget de 2025 continue de trouver des moyens de favoriser la croissance de l’économie albertaine en investissant dans les entreprises et les industries :

    • Soutien visant à attirer des investissements dans le secteur de l’énergie et des ressources minérales de sorte à accélérer les possibilités dans le domaine des ressources émergentes.
    • 45 millions de dollars sur trois ans pour le fonds d’investissement et de croissance (Investment and Growth Fund) en vue d’attirer des investissements dans l’économie albertaine.
    • 1,8 million de dollars versés à Western Crop Innovations au titre de la recherche de pointe sur les cultures.
    • 780 000 $ pour appuyer les petites et moyennes entreprises de transformation de viande.
    • 3,1 millions de dollars pour la Faculté de médecine vétérinaire de l’Université de Calgary en vue d’un agrandissement menant à un laboratoire de diagnostic vétérinaire complet. Les éleveurs de bétail et les vétérinaires auront alors accès à un diagnostic plus rapide, plus abordable et plus proche.

    « Le budget de 2025 bâtit une Alberta plus forte en développant les industries, en créant des emplois de haute qualité et en élargissant les possibilités offertes aux travailleurs et aux familles. Grâce à des investissements stratégiques en innovation, infrastructure et perfectionnement de la main-d’œuvre, l’Alberta relève le défi pour être plus forte pendant de nombreuses années à venir. »

    Matt Jones, ministre de l’Emploi, de l’Économie et du Commerce

    « Nous faisons progresser la recherche de point en agriculture et nous appuyons les petites et moyennes entreprises. De plus, nous renforçons notre infrastructure agricole pour offrir des services plus rapides et plus abordables aux éleveurs de bétail et aux vétérinaires. Nous soutenons l’innovation, nous attirons les investissements et nous bâtissons une économie résiliente pour l’avenir. »

    RJ Sigurdson, ministre de l’Agriculture et de l’Irrigation

    Le budget de 2025 relève le défi auquel fait face l’Alberta grâce à des investissements continus dans l’éducation et la santé, une baisse des impôts pour les familles et un accent sur l’économie.

    Renseignements connexes

    • Budget 2025

    Nouvelles connexes

    • Budget 2025: Meeting the challenge | Budget 2025 : Relever le défi (27 février 2025)
    • Budget 2025: Meeting the challenge in health and education | Budget 2025 :  Relever le défi dans la santé et l’éducation (27 février 2025)

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    MIL OSI Canada News –

  • MIL-OSI Security: Update 279 – IAEA Director General Statement on Situation in Ukraine

    Source: International Atomic Energy Agency – IAEA

    The presence of the International Atomic Energy Agency (IAEA) at Ukraine’s nuclear power plants (NPPs) remains an “invaluable asset” for the international community and must be preserved, Director General Rafael Mariano Grossi told Member States after the completion of a delayed team rotation at the Zaporizhzhya Nuclear Power Plant (ZNPP).

    “Difficult conditions have in the past month complicated and delayed the latest rotation of experts, which was safely completed in recent days,” Director General Grossi said in his written introductory statement to the IAEA Board of Governors, which is holding its regular March meeting this week.

    In December, a drone attack severely damaged an official IAEA vehicle during a rotation, and in February intense military activity forced the cancellation of the most recent planned rotation, which was finally concluded earlier this month. The current team at the ZNPP is the 27th since Director General Grossi established a continued IAEA presence at the site, where nuclear safety and security remains precarious.

    Director General Grossi emphasized that “all the IAEA’s activities in Ukraine are being conducted in line with relevant resolutions of the UN General Assembly and of the IAEA policy-making organs”.

    At the ZNPP, the IAEA team has continued to hear explosions on most days over the past week, at varying distances.

    The IAEA team at the ZNPP was informed that scheduled maintenance of part of the safety system of reactor unit 1 had been completed and returned to service. At the same time, maintenance began at another part of the same reactor’s safety system.

    At the Chornobyl site, firefighters have made progress in extinguishing the fire on the roof of the New Safe Confinement (NSC) caused by a drone strike on 14 February. The IAEA team at the site was informed that no smouldering fires had been detected over the past two days. The site continues to use thermal imaging and surveillance drones to monitor the structure.

    The Chornobyl site has continued to perform frequent radiation monitoring and report the results to the IAEA team. The IAEA team has also undertaken its own independent monitoring. To date, all monitoring results have shown that there has not been any increase in the normal range of radiation levels measured at the site nor any abnormal readings detected.

    The IAEA team at the Chornobyl site also reported multiple air raid alarms during the past week. In addition, the IAEA was informed by the Ukrainian regulator that the site recorded drone flights in the area early on 1 March.

    Last week, a team of IAEA experts conducted another round of visits to seven electrical substations identified as critical for nuclear safety and security in Ukraine.

    As during the previous visits last year, the team observed the current status of the substations and collected relevant information to assess any potential impacts of attacks in recent months to the safe operation of Ukraine’s nuclear facilities and to identify any further technical assistance that could be provided by the IAEA.

    The IAEA teams at Ukraine’s operating NPPs – Khmelnytskyy, Rivne and South Ukraine – have continued to monitor the nuclear safety and security situation at these sites. The teams report hearing air raid alarms on most days, with the team at the Khmelnytskyy NPP having to shelter at the site on Monday. One reactor unit at the same plant last weekend began a planned outage for refuelling and maintenance.

    Separately, the IAEA has continued with its comprehensive programme of nuclear safety and security assistance to Ukraine, with three new deliveries of equipment bringing the total number since the start of the armed conflict to 111.

    The Hydrometeorological Centre and Hydrometeorological Organizations of the State Emergency Services of Ukraine received survey meters, the Centralised Spent Fuel Storage Facility of Energoatom received thermal imaging cameras and the medical unit of the Khmelnytskyy NPP received medical equipment and supplies. The deliveries were supported with funds provided by the European Union, Norway and the United States.

    “We are grateful to all 30 donor states and the European Union for their extrabudgetary contributions, and I encourage those who can, to support the delivery of the comprehensive assistance programme, for which EUR 22 million are still necessary,” Director General Grossi told the Board.

    MIL Security OSI –

  • MIL-OSI USA: Kaine Statement on President Trump’s 2025 Address to Congress

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement after President Trump’s joint address to Congress:

    “President Trump’s address showed that he and his Administration have no problem turning their backs on middle-class Americans. In his first few weeks in office, President Trump has imposed steep tariffs that will raise costs and hurt businesses, fired thousands of federal workers who provide critical services to millions of Americans, illegally stopped the flow of federal funds that support programs Americans rely on, and cozied up to dictators like Vladimir Putin while abandoning Ukraine and our democratic allies. If the President, his Administration, and Republicans in Congress continue to go down the current path they are on, they should expect that they will be met with fierce opposition as more and more Americans will feel the impacts of Trump’s terrible policies. I know many Virginians are worried about the state of our country, and they have my commitment that I’ll continue to stand up against any efforts that will harm Virginians, hurt our economy, or make Virginians less safe.”

    Kaine brought Fairfax resident and veteran Jason King as his guest. Jason was fired from his position in the Federal Aviation Administration’s safety division as a result of the Trump Administration’s mass firing of federal employees.

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Prime Minister’s remarks at UK-Ireland Summit: 5 March 2025

    Source: United Kingdom – Executive Government & Departments

    Speech

    Prime Minister’s remarks at UK-Ireland Summit: 5 March 2025

    Prime Minister’s remarks at the UK-Ireland Summit in Liverpool.

    Thanks Lisa, it’s really fantastic to see you all here and to be in this absolutely wonderful museum.

    I’ve been in this museum a number of times, but I’m normally bundled in to the top floor to do an interview with Laura Kuenssberg on the Sunday morning of our conference.

    So, to come and see it in all its glory is really really fantastic.

    As it is to look out and see all of you here.

    And particularly just to see UK and Ireland Summit 2025 on the walls here is absolutely amazing and really, really uplifting, so thank you all for coming.

    Look I know we’re still some days away from St. Patrick’s Day.

    But we’ve got some fantastic food and drink from Irish chef Anna Haugh who is here this evening.

    Fantastic music from the Liverpool String Quartet.

    And I know we’ve got incredible people in this room.

    Business leaders, people in the arts, education, politicians.

    And of course, a very big thank you to the Taoiseach Micheál Martin who is with us this evening.

    So, all in all I think we can consider this an early celebration of everything Irish…

    And everything that binds the UK and Ireland together.

    Micheál, everyone, it really is good to see you all here in Liverpool for this important summit 

    A city which stands as the living embodiment of the connections between our two countries.

    As Lisa has alluded to, I’ve been to Ireland many times. 

    But in September last year I visited Ireland for the first time as Prime Minister of the United Kingdom.

    That was an important and special moment for me.

    But it was a wider moment, not just because I got to watch the England-Ireland football match at the Aviva Stadium…I won’t mention the score. 

    But because as the first visit by a UK Prime Minister in five years…

    And despite all the turbulence in recent times…

    It was a reminder of just how strong those ties are that bind us together.

    So, it was a really important moment for me personally, 

    But a really important moment for the United Kingdom and for Ireland to have that first visit so early in my tenure as Prime Minister.

    So, I’m really delighted that the Irish delegation is here today…

    To continue strengthening that friendship…

    As we work to bring huge benefits to the people of both countries…

    By delivering greater trade, prosperity and security.

    Now many of you will know that as Prime Minister

    My focus is on delivering change

    Improving people’s lives

    Boosting growth

    So that we can raise living standards

    and put more money into people’s pockets

    And deliver the public services people need.

    But of course, we can do much more…

    When we work together with others.

    As I’ve said before, I don’t believe the relationship between the UK and Ireland has ever reached its full potential.

    And I’m delighted that now with this summit we’re going to change all that. What an opportunity. 

    Micheál, I know we’ve got a lot to do over the coming days…

    We’ve got great ambitions for this summit.

    Talking together

    Speaking to business leaders

    Perhaps finding a moment for a bit of Guinness diplomacy.

    But tonight…

    I hope we can simply celebrate

    The UK and Ireland

    And everything that makes this such a fantastic friendship

    And now it’s my pleasure to introduce the Taoiseach, you’re so welcome I’m so pleased we were able to get this summit together: Micheál .

    Updates to this page

    Published 5 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: British Ambassador discusses economic growth, trade opportunities and investment climate with Minister of Economy

    Source: United Kingdom – Executive Government & Departments

    World news story

    British Ambassador discusses economic growth, trade opportunities and investment climate with Minister of Economy

    The British Ambassador to Guatemala, Juliana Correa, paid a courtesy visit to the Minister of Economy, Gabriela Garcia-Quinn on 5 March.

    The Ambassador and the Minister reviewed key areas of bilateral and international economic collaboration between the UK and Guatemala noting their shared values and interests, and their desire for increased cooperation. 

    Ambassador Correa welcomed Guatemalan efforts to enhance economic security, strengthen the resilience of critical supply chains and to coordinate efforts to address future challenges and build prosperity. 

    Amongst these, the UK commends the advancements made on the Competition Law, the openness to foreign investment, improved steps in the fight against corruption and continued collaboration to increase the UK-Guatemala trade figures through the UK-Central America Association Agreement. 

    According to Guatemala’s trade figures, bilateral trade in 2024 was US$155.7 million, an increase of 4.8% compared to the previous year. Exports of Guatemalan products were US$102.4 million, a decrease of -0.8%; while imports of British products were US$53.3 million, an increase of 17.6%.

    Finally, Ambassador Correa agreed to continue building up on economic opportunities detected by UK companies, share experiences that would benefit the business environment and work together to uphold and promote the rules-based international economic system, including free and open trade.

    Updates to this page

    Published 5 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI Canada: More tax relief on the way for Jasper

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

  • MIL-OSI: Amplify Energy Announces Fourth Quarter and Full-Year 2024 Results, Year-End 2024 Proved Reserves, Juniper Capital Acquisition Update and Standalone Full-Year 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, March 05, 2025 (GLOBE NEWSWIRE) — Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the fourth quarter and full-year 2024, year-end 2024 proved reserves, Juniper Capital (“Juniper”) acquisition update and full-year 2025 standalone guidance for the Company.

    Key Highlights

    • 2025 strategic initiatives include:
      • Completing the previously announced transformational combination with certain Juniper portfolio companies which own substantial oil-weighted producing assets and significant leasehold interests in the DJ and Powder River Basins (the “Transaction”) and integrating such assets into our operations
      • Continuing the Beta development program with six completions planned for 2025 including the C-48 and the A-45 which were deferred from the 2024 program
      • Expanding Magnify Energy Services, a wholly owned subsidiary of Amplify (“Magnify”), to enhance Amplify’s competitive advantage in operating our mature assets located in East Texas and Oklahoma
      • Creating incremental value in East Texas by monetizing portions of our portfolio and/or participating in joint development opportunities focused within the Haynesville formation
    • During the fourth quarter of 2024, the Company:
      • Achieved average total production of 18.5 MBoepd
      • Generated net cash provided by operating activities of $12.5 million and a net loss of $7.4 million
      • Delivered Adjusted EBITDA of $21.8 million and Adjusted Net Income of $5.1 million
      • Generated $2.9 million of free cash flow
      • Completed the sale of undeveloped Haynesville acreage in East Texas for $1.4 million
    • For full-year 2024, the Company:
      • Achieved average total production of 19.5 MBoepd
      • Generated net cash provided by operating activities of $51.3 million and net income of $12.9 million
      • Delivered Adjusted EBITDA of $103.0 million and Adjusted Net Income of $35.8 million
      • Generated $18.0 million of free cash flow
      • Renegotiated prior surety bonds and reduced sinking fund payments by approximately $7.0 million per year
      • Initiated development drilling program at Beta, with the completion of two wells, which outperformed type curves
      • Generated $3.1 million of Adjusted EBITDA at Magnify
      • Renegotiated the iodine contract in Oklahoma, increasing annual Adjusted EBITDA by $2.4 million
    • Amplify’s year-end 2024 total proved reserves, utilizing Securities and Exchange Commission (“SEC”) pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas, totaled 93 MMBoe and had a PV-10 value of approximately $736 million
    • As of December 31, 2024, Amplify had $127.0 million outstanding under the revolving credit facility
      • Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.2x1
         
      (1) Net debt as of December 31, 2024, consisting of $127 MM outstanding under its revolving credit facility with ~$0.0 MM of cash and cash equivalents, and LTM Adjusted EBITDA as of the fourth quarter of 2024.
         

    Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “In early 2024, we told stakeholders that 2024 had the potential to be a transformative year for the Company, and we believe that we delivered on that expectation throughout the year. The recently announced transaction with Juniper Capital expands our operations into the DJ and Powder River Basins, increases our scale, operating efficiency and margins, improves our inventory of attractive drilling locations, and provides us with a new core area for potential M&A activity. The transaction also resulted in a new long-term partnership with Juniper Capital, who have a long history of delivering substantial value to shareholders. At Beta, we safely and successfully initiated a drilling program, which has increased our confidence regarding the future inventory of the field and has enabled us to expand our development plans for this prolific asset in 2025 and beyond.”

    Mr. Willsher continued, “While we have focused our attention and resources on these two significant initiatives, our team has also delivered value to stockholders by pursuing opportunities to reduce operating expenses and maximize the value of our existing asset base. For example, Magnify Energy Services, our wholly owned subsidiary that provides oilfield services to Amplify-operated wells, expanded meaningfully in scope, realizing a significant increase in revenue and efficiency and reducing operating costs in East Texas and Oklahoma. We also renegotiated several existing contracts, like our iodine extraction contract, to receive improved economics. Although smaller in scope, these efforts have demonstrated management’s commitment to identifying areas to improve our operations and deliver value to stockholders. On the value maximizing front, we were able to monetize a portion of our acreage with Haynesville rights for several million dollars, while retaining an interest to realize upside value.”

    Mr. Willsher concluded, “We believe that our strategic and operational accomplishments in 2024 set the foundation for Amplify’s future and that in 2025 we will begin to capitalize on the growth potential of this significantly enhanced asset base.  By delivering on our 2025 strategic initiatives, we believe we can create immediate and long-term value for Amplify’s stockholders.”

    Juniper Capital Rocky Mountain Assets Update

    On January 15, 2025, Amplify announced that it has entered into a definitive merger agreement with privately held Juniper to combine with certain Juniper portfolio companies owning assets and leasehold interests in the DJ and Powder River Basins. Such portfolio companies are oil-weighted and include approximately 287,000 net acres. We expect to close the acquisition in the second quarter of 2025. Amplify has provided more information on the portfolio companies and their assets and the value potential of the Transaction in its latest investor presentation, available on its investor relations website.

    On March 4, 2025, a definitive proxy statement was filed providing additional details on the Transaction. A special meeting of stockholders, to be held virtually, has been scheduled for April 14, 2025, at 9:00 am Central Time, where stockholders of record as of March 3, 2025 can vote to approve the issuance of common stock, par value $0.01 per share (the “Common Stock”) (as described in more detail in the definitive proxy statement) in connection with the Transaction. In order to virtually attend, stockholders must register in advance at www.cesonlineservices.com/ampysm_vm prior to April 13, 2025 at 9:00 a.m. Central Time. More information can be found in the definitive proxy statement on the SEC’s website at www.sec.gov and the Company’s website, www.amplifyenergy.com, under the Investor Relations section. Upon approval from our stockholders of the issuance of Common Stock and the resulting closing of the Transaction, Amplify and Juniper are expected to own approximately 61% and 39%, respectively, of the combined company’s outstanding equity.

    In anticipation of closing, Amplify is currently working with Juniper and its portfolio companies on integrating the Juniper assets into the Amplify organization. Furthermore, the Company expects to refinance a substantial portion of its outstanding debt and approximately $133 million in principal amount of the portfolio companies’ outstanding debt prior to closing the Transaction. Amplify intends to update the market with developments of the Transaction as they progress.

    East Texas Haynesville Monetization Update

    Starting in 2024, several operators expressed increased interest in buying or partnering with Amplify on our East Texas Haynesville interests. In December 2024, Amplify monetized ninety percent (90%) of its interests in certain units with Haynesville rights in Panola and Shelby Counties, while retaining a ten percent (10%) working interest and the ability to participate in any well drilled within the boundary of such units. Upon closing, such transaction generated approximately $1.4 million in proceeds.

    In January 2025, Amplify completed a second transaction with a separate counterparty. Amplify sold ninety percent (90%) of its interest in certain units with Haynesville rights in Harrison County, Texas, in addition to 11 gross operated wells. This transaction also established an Area of Mutual Interest (“AMI”) with the counterparty covering 10,000 gross acres. Amplify retained a ten percent (10%) working interest in the units it divested and purchased a ten percent (10%) working interest in the counterparty’s acreage. Amplify generated net proceeds of $6.2 million from these transactions and estimates the AMI has more than 30 potential gross drilling locations.

    2024 Year-End Proved Reserve Update

    The Company’s estimated proved reserves at SEC pricing for year-end 2024 totaled 93.0 MMBoe, which consisted of 82.2 MMBoe of proved developed reserves and 10.8 MMBoe of proved undeveloped reserves. Proved developed reserves were lower year-over-year, primarily due to lower SEC pricing for oil and natural gas, which fell from $78.22 to $75.48 for oil and from $2.64 to $2.13 for natural gas, and the impact of 2024 production roll-off. Total proved reserves were comprised of 44% oil, 19% NGLs, and 37% natural gas.

    At year-end 2024, Amplify’s total proved reserves and proved developed reserves had PV-10 values of approximately $736 million and $507 million, respectively, using SEC pricing. Proved developed reserve value at Bairoil was lower than 2023 due to a combination of SEC pricing, production performance and higher operating cost assumptions due to significant increases in regulated electricity rates. Proved undeveloped reserves have increased materially as a result of the successful 2024 Beta development program, with the Company adding 23 additional locations and approximately $200 million in PV-10 value. The initial production rates for the two Beta wells brought on-line in 2024 exceeded the type-curves included in our year-end reserve report, and Amplify will consider increasing the type curve assumptions for Beta development wells after evaluating results from the 2025 development program. Detail on the Company’s reserves by asset is provided in the table below. Additionally, Amplify has provided more information on its Beta development program and the substantial value potential of the field in its latest investor presentation, available on its investor relations website.

      Estimated Net Reserves1
    Region MMBoe % Oil and NGL Proved Developed PV-10 Proved Undeveloped PV-10 Total Proved PV-10
          (in millions)
               
    Beta 19.1 100% $144 $214 $358
    Oklahoma 27.0 46% 138 – 138
    Bairoil 16.4 100% 118 – 118
    East Texas/ North Louisiana 28.0 30% 75 4 79
    Eagle Ford (Non-op) 2.5 90% 32 11 43
               
    Total 93.0 63% $507 $229 $736
    (1) Amplify’s year-end 2024 total proved reserves, utilizing SEC pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas.
       

    Amplify’s reserves estimates were prepared by its third-party independent reserve consultant, Cawley, Gillespie & Associates, Inc.

    Key Financial Results

    During the fourth quarter of 2024, the Company reported a net loss of approximately $7.4 million. The net loss was primarily attributable to a non-cash unrealized loss on commodity derivatives during the period. Excluding the impact of the non-cash unrealized loss on commodity derivatives in addition to other one-time impacts, Amplify generated Adjusted Net Income of $5.1 million in the fourth quarter of 2024.

    Fourth quarter Adjusted EBITDA was $21.8 million, a decrease of approximately $3.7 million from $25.5 million in the prior quarter. The decrease was primarily due to lower realized oil prices (net of hedges) in the fourth quarter compared to the prior quarter.

    Free cash flow was $2.9 million for the fourth quarter, a decrease of $0.7 million compared to the prior quarter. Amplify has now generated positive free cash flow in 18 of the last 19 fiscal quarters.

      Fourth Quarter Third Quarter
    $ in millions 2024   2024  
    Net income (loss)   ($7.4 )   $22.7  
    Net cash provided by operating activities   $12.5     $15.7  
    Average daily production (MBoe/d)   18.5     19.0  
    Total revenues excluding hedges   $69.0     $69.9  
    Adjusted EBITDA (a non-GAAP financial measure)   $21.8     $25.5  
    Adjusted net income (loss), (a non-GAAP financial measure)   $5.1     $9.8  
    Total capital   $15.3     $18.2  
    Free Cash Flow (a non-GAAP financial measure)   $2.9     $3.6  
         

    Revolving Credit Facility

    As of December 31, 2024, Amplify had $127.0 million outstanding under its revolving credit facility, and net debt to LTM Adjusted EBITDA was 1.2x (net debt as of December 31, 2024 and 4Q24 LTM Adjusted EBITDA). Fourth quarter net debt increased from the prior quarter due to expected changes in working capital and increased development activity, primarily at Beta.

    Corporate Production and Pricing

    During the fourth quarter of 2024, average daily production was approximately 18.5 Mboepd, a decrease of 0.5 Mboepd from the prior quarter. The decrease in production was driven by gas volumes, which were impacted by gas plant realizations in East Texas. Our oil volumes, although slightly higher compared to the prior quarter, were impacted by platform shutdowns following the completion of the emission reduction and electrification facility projects and several unexpected well failures and subsequent interventions at Beta. With the successful completion of the electrification and emissions reduction project in the fourth quarter 2024 and the intervention projects completed by end of January 2025, we are projecting Beta production to be significantly higher than the fourth quarter, before the impact of the 2025 drilling program. As of March 2, 2025, current 7-day average production rates at Beta were 4,834 gross Bopd (3,635 net Bopd), representing an approximate 9% increase from fourth quarter 2024 volumes, with minimal contribution from the recently completed C48 well, which we continue to draw down since completing in mid-February.

    The Company’s product mix for the quarter was 45% crude oil, 17% NGLs, and 38% natural gas.

      Three Months   Three Months
      Ended   Ended
      December 31, 2024   September 30, 2024
           
    Production volumes – MBOE:      
    Bairoil   293       294  
    Beta   308       304  
    Oklahoma   436       454  
    East Texas / North Louisiana   609       638  
    Eagle Ford (Non-op)   60       62  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
    % – Liquids   62 %     60 %
           

    Total oil, natural gas and NGL revenues for the fourth quarter of 2024 were approximately $67.2 million, before the impact of derivatives. The Company realized a net gain on commodity derivatives of $4.1 million during the fourth quarter. Oil, natural gas and NGL revenues, net of realized hedges, decreased $3.3 million for the fourth quarter compared to the prior quarter.

    The following table sets forth information regarding average realized sales prices for the periods indicated:

      Crude Oil ($/Bbl) NGLs ($/Bbl) Natural Gas ($/Mcf)
                           
      Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2024   Three Months Ended September 30, 2024
                           
    Average sales price exclusive of realized derivatives and certain deductions from revenue $ 66.82     $ 71.74     $ 23.46     $ 21.63     $ 2.52     $ 1.84  
    Realized derivatives   1.43       (0.24 )     –       –       0.76       1.38  
                           
    Average sales price with realized derivatives exclusive of certain deductions from revenue $ 68.25     $ 71.50     $ 23.46     $ 21.63     $ 3.28     $ 3.22  
    Certain deductions from revenue   –       –       (1.37 )     (1.33 )     (0.01 )     0.00  
                           
    Average sales price inclusive of realized derivatives and certain deductions from revenue $ 68.25     $ 71.50     $ 22.09     $ 20.30     $ 3.27     $ 3.22  
                           

    Costs and Expenses

    Lease operating expenses in the fourth quarter of 2024 were approximately $35.1 million, or $20.57 per Boe, a $1.8 million increase compared to the prior quarter. Due to increased well failures in the fourth quarter, Beta lease operating costs were higher compared to the prior quarter. Lease operating expenses do not reflect $0.9 million of income generated by Magnify in the fourth quarter.

    Severance and ad valorem taxes in the fourth quarter were approximately $5.4 million, a decrease of $0.6 million compared to $6.0 million in the prior quarter, and in line with expectations. Severance and ad valorem taxes as a percentage of revenue were approximately 8.0% in the fourth quarter.

    Amplify incurred $4.5 million, or $2.62 per Boe, of gathering, processing and transportation expenses in the fourth quarter, compared to $4.3 million, or $2.45 per Boe, in the prior quarter.

    Cash G&A expenses in the fourth quarter were $6.3 million, an increase of $0.1 million compared to the prior quarter and in-line with expectations.

    Depreciation, depletion and amortization expense in the fourth quarter totaled $8.4 million, or $4.93 per Boe, compared to $8.1 million, or $4.62 per Boe, in the prior quarter.

    Net interest expense was $3.7 million in the fourth quarter, a decrease of $0.1 million compared to $3.8 million in the prior quarter.

    Amplify recorded a current income tax benefit of $2.1 million in the fourth quarter.

    Fourth Quarter and Full-Year Capital Investments

    Cash capital investment during the fourth quarter of 2024 was approximately $15.3 million. During the fourth quarter, the Company’s capital allocation was approximately 65% for Beta development drilling and facility projects, with the remainder distributed across the Company’s other assets.

    The following table details Amplify’s capital invested during the fourth quarter of 2024:

      Fourth Quarter   Full-Year
      2024 Capital   2024 Capital
      ($ MM)   ($ MM)
    Bairoil $ 0.2     $ 2.9  
    Beta $ 10.0     $ 53.7  
    Oklahoma $ 0.1     $ 3.2  
    East Texas / North Louisiana $ 2.8     $ 5.6  
    Eagle Ford (Non-op) $ 2.1     $ 4.1  
    Magnify Energy Services $ 0.1     $ 1.1  
    Total Capital Invested $ 15.3     $ 70.6  
           

    2025 Operations & Development Plan

    The following table details Amplify’s 2025 projected capital investments of $70 – $80 million:

    Capital Investment by Type (% of Total):  
    Beta Development 41 %
    Beta Facility 16 %
    Workovers & Other Facilities 25 %
    Non-op Development 18 %
    Total Capital Investments: 100 %
         

    Amplify’s 2025 operations and development plan is designed to continue unlocking the underlying value of the Company’s assets. To achieve this goal, we intend to 1) continue our development program at Beta, 2) execute on low-cost, high-return workover projects, and 3) reduce operating costs by increasing activity at Magnify.

    At Beta, Amplify intends to complete six wells in 2025. The C48 well, the first of the six wells to be completed in 2025, was drilled in the fourth quarter of 2024 and completed in mid-February. Similar to the A50 and C59 wells drilled in 2024, the completion of the C48 well was initially designed to target the D-sand. However, drilling conditions encountered in the D-sand and the quality of the C-Sand observed while drilling through the formation, led the team to alter the completion design and target the C-sand instead. The C48 will be the first test of the horizontal potential of the C-sand and we will share the results of the C48 well after obtaining sufficient initial production data.

    In 2024 Amplify brought online two new wells at Beta, the A50 well (brought online in June) and the C59 well (brought online in October), both of which exceeded internal projections and increased Beta’s overall production approximately 15% in January 2025 compared to January of 2024. Similarly, the six Beta completions planned in 2025 are expected to significantly increase Amplify’s oil production year-over-year. Additional information regarding the Beta development plan can be found in the investor presentation on the Company’s investor relations website.

    In addition to drilling and completing the six wells, Amplify intends to make continued investments in Beta’s facilities. In 2025, the Company expects to invest approximately $8 million to upgrade a 2-mile pipeline that ships all produced fluid from platform Eureka to platform Elly.

    At Bairoil, we continue to focus on enhancing water-alternating-gas injection performance through targeted well recompletions and conversions, which helps offset the asset’s nominal production declines. Our plan also includes an investment at our CO2 gas plant intended to reduce overall power usage and lease operating expenses in the second half of 2025.

    Amplify’s operating strategy in Oklahoma remains focused on prioritizing a stable free cash flow profile by managing production through an active workover program, artificial lift enhancements, extending well run-times and continuing to reduce operating costs.

    In East Texas, we are participating in the completion of four non-operated development projects, which we expect to be online by mid-year. The Company also continues to focus on prudent management of the field, such as optimizing field compression, artificial lift enhancement, and equipment insourcing, which is expected to improve the production profile and lower lease operating costs.

    In late 2023, we formed Magnify to in-source specific oilfield services to improve service reliability and to reduce overall operating expenses for the Company. Since its inception, Magnify has generated $3.7 million of Adjusted EBITDA with a capital investment of only $1.7 million. In 2025, we expect to invest an additional $1.4 million of capital in Magnify and project 2025 Adjusted EBITDA of approximately $5 million (with an annualized run rate of $6 million by year-end). We are evaluating additional accretive services for Magnify to service Amplify operated assets.

    In the Eagle Ford, we are participating in 14 gross (0.7 net) new development wells and two gross (0.4 net) recompletion projects. These non-operated wells, with highly accretive returns, are currently scheduled to be completed in the first half of 2025.

    Full-Year 2025 Guidance

    The following standalone guidance is subject to the cautionary statements and limitations described under the “Forward-Looking Statements” caption at the end of this press release. Amplify’s 2025 guidance is based on its current expectations regarding capital investment levels and flat commodity prices for crude oil of $71/Bbl (WTI) and natural gas of $3.75/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. Additionally, the Company expects to invest approximately 90% of its capital in the first three quarters of the year primarily in connection with the Beta development program. Upon closing of the Transaction with Juniper, the Company will provide updated guidance to include the acquired assets.

    A summary of the standalone guidance is presented below:

      FY 2025E
           
      Low   High
           
    Net Average Daily Production      
    Oil (MBbls/d) 8.5 – 9.4
    NGL (MBbls/d) 3.0 – 3.3
    Natural Gas (MMcf/d) 45.0 – 51.0
    Total (MBoe/d) 19.0 – 21.0
           
    Commodity Price Differential / Realizations (Unhedged)      
    Oil Differential ($ / Bbl) ($3.25) – ($4.25)
    NGL Realized Price (% of WTI NYMEX) 27% – 31%
    Natural Gas Realized Price (% of Henry Hub) 85% – 92%
           
    Other Revenue      
    Magnify Energy Services ($ MM) $4 – $6
    Other ($ MM) $2 – $3
    Total ($ MM) $6 – $9
           
    Gathering, Processing and Transportation Costs      
    Oil ($ / Bbl) $0.65 – $0.85
    NGL ($ / Bbl) $2.75 – $4.00
    Natural Gas ($ / Mcf) $0.55 – $0.75
    Total ($ / Boe) $2.25 – $2.85
           
    Average Costs      
    Lease Operating ($ / Boe) $18.50 – $20.50
    Taxes (% of Revenue) (1) 6.0% – 7.0%
    Cash General and Administrative ($ / Boe) (2)(3) $3.40 – $3.90
           
    Adjusted EBITDA ($ MM) (2)(3) $100 – $120
    Cash Interest Expense ($ MM) $12 – $18
    Capital Expenditures ($ MM) $70 – $80
    Free Cash Flow ($ MM) (2)(3) $10 – $30
           
    (1) Includes production, ad valorem and franchise taxes
    (2) Refer to “Use of Non-GAAP Financial Measures” for Amplify’s definition and use of Cash G&A, Adjusted EBITDA and free cash flow, non-GAAP measures (cash income taxes, which are not included in free cash flow, are expected to range between $0 – $2 million for the year)
    (3) Amplify believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Amplify to predict the timing and likelihood of future transactions and other items that are difficult to accurately predict. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
     

    Hedging

    Recently, the Company took advantage of volatility in the futures market to add to its hedge position, further protecting future cash flows. Amplify executed crude oil swaps covering the second half of 2025 through year-end 2026 at a weighted average price of $68.10. The Company also added natural gas collars for a portion of 2027 with a weighted average floor of $3.63 per MMBtu and a weighted average ceiling of $3.98 per MMBtu.

    The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed floor and ceiling prices at which production is hedged for January 2025 through December 2027, as of March 4, 2025:

        2025       2026       2027  
               
    Natural Gas Swaps:          
    Average Monthly Volume (MMBtu)   585,000       500,000       87,500  
    Weighted Average Fixed Price ($) $ 3.75     $ 3.79     $ 3.76  
               
    Natural Gas Collars:          
    Two-way collars          
    Average Monthly Volume (MMBtu)   500,000       500,000       87,500  
    Weighted Average Ceiling Price ($) $ 3.90     $ 4.06     $ 4.20  
    Weighted Average Floor Price ($) $ 3.50     $ 3.55     $ 3.50  
               
    Oil Swaps:          
    Average Monthly Volume (Bbls)   128,583       72,750      
    Weighted Average Fixed Price ($) $ 70.85     $ 69.19      
               
    Oil Collars:          
    Two-way collars          
    Average Monthly Volume (Bbls)   59,500          
    Weighted Average Ceiling Price ($) $ 80.20          
    Weighted Average Floor Price ($) $ 70.00          
               

    Amplify has posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.

    Annual Report on Form 10-K

    Amplify’s financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2024, which Amplify expects to file with the SEC on March 5, 2025.

    About Amplify Energy

    Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.

    Conference Call

    Amplify will host an investor teleconference tomorrow at 10 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (888) 999-5318 at least 15 minutes before the call begins and providing the Conference ID: AEC4Q24. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Access Code: 71724906. A transcript and a recorded replay of the call will also be available on our website after the call.

    Forward-Looking Statements

    This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the Company’s ability to successfully complete the proposed business combination between the Company and certain of Juniper’s portfolio companies, or the “Mergers”; the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, and ongoing conflicts in the Middle East, and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets; expectations regarding general economic conditions, including inflation; and the impact of local, state and federal governmental regulations, including those related to climate change and hydraulic fracturing, and the current administration’s potential reversal thereof. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

    No Offer or Solicitation

    A portion of this press release relates to a proposed business combination transaction between the Company and certain Juniper portfolio companies. This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, in any jurisdiction, pursuant to the proposed business combination transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this document in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

    Important Additional Information Regarding the Mergers Will Be Filed With the SEC

    In connection with the proposed transaction, the Company has filed a definitive proxy statement. The definitive proxy statement will be sent to the stockholders of the Company. The Company may also file other documents with the SEC regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS OF AMPLIFY ARE ADVISED TO CAREFULLY READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGERS, THE PARTIES TO THE MERGERS AND THE RISKS ASSOCIATED WITH THE MERGERS. Investors and security holders may obtain a free copy of the definitive proxy statement and other relevant documents filed by Amplify with the SEC from the SEC’s website at www.sec.gov. Security holders and other interested parties will also be able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents (when available) by (1) directing your written request to: 500 Dallas Street, Suite 1700, Houston, Texas or (2) contacting our Investor Relations department by telephone at (832) 219-9044 or (832) 219-9051. Copies of the documents filed by the Company with the SEC will be available free of charge on the Company’s website at http://www.amplifyenergy.com.

    Participants in the Solicitation

    Amplify and certain of its respective directors, executive officers and employees may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the stockholders of Amplify in connection with the proposed transaction, including a description of their respective direct or indirect interests, by security holdings or otherwise, is included in the definitive proxy statement filed with the SEC. Additional information regarding the Company’s directors and executive officers is also included in Amplify’s Notice of Annual Meeting of Stockholders and 2024 Proxy Statement, which was filed with the SEC on April 5, 2024. These documents are available free of charge as described above.

    Use of Non-GAAP Financial Measures

    This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted net income, free cash flow, net debt, PV-10 and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.

    Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income (loss) plus Interest expense; Income tax expense (benefit); DD&A; Impairment of goodwill and long-lived assets (including oil and natural gas properties); Accretion of AROs; Loss or (gain) on commodity derivative instruments; Cash settlements received or (paid) on expired commodity derivative instruments; Amortization of gain associated with terminated commodity derivatives; Losses or (gains) on sale of assets and other, net; Share-based compensation expenses; Exploration costs; Acquisition and divestiture related expenses; Reorganization items, net; Severance payments; and Other non-routine items that we deem appropriate. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.

    Adjusted Net Income. Amplify defines Adjusted Net Income as net income (loss) adjusted for loss (gain) on commodity derivative instruments, acquisition & divestiture related expenses, unusual and infrequent items, and the income tax expense or benefit of these adjustments using our federal statutory tax rate. Adjusted Net Income (Loss) excludes the impact of unusual and infrequent items affecting earnings that vary widely and unpredictably, including derivative gains and losses. This measure is not meant to disassociate these items from management’s performance but rather is intended to provide helpful information to investors interested in comparing our performance between periods. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP.

    Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.

    Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.

    PV-10. PV-10 is a non-GAAP financial measure that represents the present value of estimated future cash inflows from proved oil and natural gas reserves that are calculated using the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months, less future development and operating costs, discounted at 10% per annum to reflect the timing of future cash flows. The most directly comparable GAAP measure to PV-10 is standardized measure. PV-10 differs from standardized measure in its treatment of estimated future income taxes, which are excluded from PV-10. Amplify believes the presentation of PV-10 provides useful information because it is widely used by investors in evaluating oil and natural gas companies without regard to specific income tax characteristics of such entities. PV-10 is not intended to represent the current market value of our estimated proved reserves. PV-10 should not be considered in isolation or as a substitute for the standardized measure as defined under GAAP.

    Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.

    Contacts

    Jim Frew — Senior Vice President and Chief Financial Officer
    (832) 219-9044
    jim.frew@amplifyenergy.com

    Michael Jordan — Director, Finance and Treasurer
    (832) 219-9051
    michael.jordan@amplifyenergy.com


    Selected Operating and Financial Data (Tables)

    Amplify Energy Corp.
    Selected Financial Data – Unaudited
    Statements of Operations Data
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   September 30, 2024
           
    Revenues:      
    Oil and natural gas sales $ 67,189     $ 68,135  
    Other revenues   1,832       1,723  
    Total revenues   69,021       69,858  
           
    Costs and Expenses:      
    Lease operating expense   35,100       33,255  
    Pipeline incident loss   2,405       247  
    Gathering, processing and transportation   4,468       4,290  
    Exploration   10       –  
    Taxes other than income   5,356       5,997  
    Depreciation, depletion and amortization   8,418       8,102  
    General and administrative expense   9,486       8,251  
    Accretion of asset retirement obligations   2,156       2,125  
    Realized (gain) loss on commodity derivatives   (4,052 )     (6,375 )
    Unrealized (gain) loss on commodity derivatives   13,357       (18,672 )
    (Gain) loss on sale of properties   (1,367 )     –  
    Other, net   334       38  
    Total costs and expenses   75,671       37,258  
           
    Operating Income (loss)   (6,650 )     32,600  
           
    Other Income (Expense):      
    Interest expense, net   (3,684 )     (3,756 )
    Other income (expense)   (113 )     (130 )
    Total other income (expense)   (3,797 )     (3,886 )
           
    Income (loss) before reorganization items, net and income taxes   (10,447 )     28,714  
           
    Income tax benefit (expense) – current   2,132       (412 )
    Income tax benefit (expense) – deferred   886       (5,650 )
           
    Net income (loss) $ (7,429 )   $ 22,652  
           
    Earnings per share:      
    Basic and diluted earnings (loss) per share $ (0.19 )   $ 0.54  
           
    Selected Financial Data – Unaudited      
    Operating Statistics      
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per unit data) December 31, 2024   September 30, 2024
           
    Oil and natural gas revenue:      
    Oil Sales $ 50,817     $ 54,353  
    NGL Sales   6,602       6,096  
    Natural Gas Sales   9,770       7,686  
    Total oil and natural gas sales – Unhedged $ 67,189     $ 68,135  
           
    Production volumes:      
    Oil Sales – MBbls   760       758  
    NGL Sales – MBbls   299       301  
    Natural Gas Sales – MMcf   3,883       4,165  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
           
    Average sales price (excluding commodity derivatives):      
    Oil – per Bbl $ 66.82     $ 71.74  
    NGL – per Bbl $ 22.09     $ 20.29  
    Natural gas – per Mcf $ 2.52     $ 1.85  
    Total – per Boe $ 39.37     $ 38.88  
           
    Average unit costs per Boe:      
    Lease operating expense $ 20.57     $ 18.98  
    Gathering, processing and transportation $ 2.62     $ 2.45  
    Taxes other than income $ 3.14     $ 3.42  
    General and administrative expense $ 5.56     $ 4.71  
    Realized gain/(loss) on commodity derivatives $ 2.38     $ 3.64  
    Depletion, depreciation, and amortization $ 4.93     $ 4.62  
           
    Selected Financial Data – Unaudited      
    Asset Operating Statistics      
           
      Three Months   Three Months
      Ended   Ended
      December 31, 2024   September 30, 2024
           
    Production volumes – MBOE:      
    Bairoil   293       294  
    Beta   308       304  
    Oklahoma   436       454  
    East Texas / North Louisiana   609       638  
    Eagle Ford (Non-op)   60       62  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
    % – Liquids   62 %     60 %
           
    Lease operating expense – $M:      
    Bairoil $ 11,800     $ 13,164  
    Beta   12,113       9,520  
    Oklahoma   3,948       3,644  
    East Texas / North Louisiana   5,887       5,592  
    Eagle Ford (Non-op)   1,351       1,335  
    Total Lease operating expense: $ 35,099     $ 33,255  
           
    Capital expenditures – $M:      
    Bairoil $ 190     $ 1,224  
    Beta   10,001       12,047  
    Oklahoma   168       1,449  
    East Texas / North Louisiana   2,758       2,303  
    Eagle Ford (Non-op)   2,125       1,157  
    Magnify Energy Services   82       44  
    Total Capital expenditures: $ 15,324     $ 18,224  
           
    Selected Financial Data – Unaudited              
    Balance Sheet Data              
                   
    (Amounts in $000s) December 31, 2024   September 30, 2024
                   
    Assets              
    Cash and Cash Equivalents $ –     $ –  
    Accounts Receivable   39,713       32,295  
    Other Current Assets   32,064       37,862  
    Total Current Assets $ 71,777     $ 70,157  
                   
    Net Oil and Gas Properties $ 386,218     $ 378,871  
    Other Long-Term Assets   289,081       290,188  
    Total Assets $ 747,076     $ 739,216  
                   
    Liabilities              
    Accounts Payable $ 13,231     $ 18,107  
    Accrued Liabilities   43,413       36,699  
    Other Current Liabilities   11,494       11,362  
    Total Current Liabilities $ 68,138     $ 66,168  
                   
    Long-Term Debt $ 127,000     $ 120,000  
    Asset Retirement Obligation   129,700       127,556  
    Other Long-Term Liabilities   13,326       10,822  
    Total Liabilities $ 338,164     $ 324,546  
                   
    Shareholders’ Equity              
    Common Stock & APIC $ 440,380     $ 438,709  
    Accumulated Earnings (Deficit)   (31,468 )     (24,039 )
    Total Shareholders’ Equity $ 408,912     $ 414,670  
                   
    Selected Financial Data – Unaudited      
    Statements of Cash Flows Data      
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
           
    Net cash provided by (used in) operating activities $ 12,455     $ 15,737  
    Net cash provided by (used in) investing activities   (19,379 )     (18,078 )
    Net cash provided by (used in) financing activities   6,924       1,839  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities:    
    Net cash provided by operating activities $ 12,455     $ 15,737  
    Changes in working capital   4,770       5,937  
    Interest expense, net   3,684       3,756  
    Cash settlements received on terminated commodity derivatives   –       (793 )
    Amortization of gain associated with terminated commodity derivatives   159       –  
    Amortization and write-off of deferred financing fees   (315 )     (310 )
    Exploration costs   10       –  
    Acquisition and divestiture related costs   1,424       186  
    Plugging and abandonment cost   754       372  
    Current income tax expense (benefit)   (2,132 )     412  
    Pipeline incident loss   2,405       247  
    (Gain) loss on sale of properties   (1,367 )     –  
    Adjusted EBITDA: $ 21,847     $ 25,544  
           
    Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:    
    Adjusted EBITDA: $ 21,847     $ 25,544  
    Less: Cash interest expense   3,598       3,721  
    Less: Capital expenditures   15,324       18,224  
    Free Cash Flow: $ 2,925     $ 3,599  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
    Reconciliation of Adjusted EBITDA1to Net Cash Provided from Operating Activities:    
    Net cash provided by operating activities $ 51,293     $ 141,590  
    Changes in working capital   32,272       (8,517 )
    Interest expense, net   14,599       17,719  
    Cash settlements received on terminated commodity derivatives   (793 )     (658 )
    Amortization of gain associated with terminated commodity derivatives   159       658  
    Amortization and write-off of deferred financing fees   (1,233 )     (1,980 )
    Exploration costs   61       57  
    Acquisition and divestiture related costs   1,633       219  
    Plugging and abandonment cost   1,640       2,239  
    Current income tax expense (benefit)   232       4,817  
    Pipeline incident loss   3,859       19,981  
    (Gain) loss on sale of properties   (1,367 )     –  
    LOPI – timing differences   –       (4,636 )
    Litigation settlement   –       (84,875 )
    Other   686       1,418  
    Adjusted EBITDA: $ 103,041     $ 88,032  
           
    Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:    
    Adjusted EBITDA1: $ 103,041     $ 88,032  
    Less: Cash interest expense   14,438       16,263  
    Less: Capital expenditures   70,644       33,744  
    Free Cash Flow: $ 17,959     $ 38,025  
      (1) Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA1 and Free Cash Flow
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted EBITDA to Net Income (Loss):      
    Net income (loss) $ (7,429 )   $ 22,652  
    Interest expense, net   3,684       3,756  
    Income tax expense (benefit) – current   (2,132 )     412  
    Income tax expense (benefit) – deferred   (886 )     5,650  
    Depreciation, depletion and amortization   8,418       8,102  
    Accretion of asset retirement obligations   2,156       2,125  
    (Gains) losses on commodity derivatives   9,305       (25,047 )
    Cash settlements received (paid) on expired commodity derivative instruments   4,052       5,582  
    Amortization of gain associated with terminated commodity derivatives   159       –  
    Acquisition and divestiture related costs   1,424       186  
    Share-based compensation expense   1,686       1,815  
    (Gain) loss on sale of properties   (1,367 )     –  
    Exploration costs   10       –  
    Loss on settlement of AROs   334       38  
    Bad debt expense   28       26  
    Pipeline incident loss   2,405       247  
    Adjusted EBITDA1: $ 21,847     $ 25,544  
           
    Reconciliation of Free Cash Flow to Net Income (Loss):      
    Adjusted EBITDA: $ 21,847     $ 25,544  
    Less: Cash interest expense   3,598       3,721  
    Less: Capital expenditures   15,324       18,224  
    Free Cash Flow: $ 2,925     $ 3,599  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
           
    Reconciliation of Adjusted EBITDA1to Net Income (Loss):      
    Net income (loss) $ 12,946     $ 392,750  
    Interest expense, net   14,599       17,719  
    Income tax expense (benefit) – current   232       4,817  
    Income tax expense (benefit) – deferred   2,196       (253,796 )
    Depreciation, depletion and amortization   32,586       28,004  
    Accretion of asset retirement obligations   8,438       7,951  
    (Gains) losses on commodity derivatives   2,047       (40,343 )
    Cash settlements received (paid) on expired commodity derivative instruments   17,617       (8,273 )
    Amortization of gain associated with terminated commodity derivatives   159       658  
    Acquisition and divestiture related costs   1,633       219  
    Share-based compensation expense   6,799       5,280  
    (Gain) loss on sale of properties   (1,367 )     –  
    Exploration costs   61       57  
    Loss on settlement of AROs   470       1,003  
    Bad debt expense   80       98  
    Pipeline incident loss   3,859       19,981  
    LOPI – timing differences   –       (4,636 )
    Litigation settlement   –       (84,875 )
    Other   686       1,418  
    Adjusted EBITDA: $ 103,041     $ 88,032  
           
    Reconciliation of Free Cash Flow to Net Income (Loss):      
    Adjusted EBITDA1: $ 103,041     $ 88,032  
    Less: Cash interest expense   14,438       16,263  
    Less: Capital expenditures   70,644       33,744  
    Free Cash Flow: $ 17,959     $ 38,025  
      (1) Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Net Income (Loss) to Adjusted Net Income (Loss)
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted Net Income (Loss):      
    Net income (loss) $ (7,429 )   $ 22,652  
    Unrealized (gain) loss on commodity derivatives   13,357       (18,672 )
    Acquisition and divestiture related costs   1,424       186  
    Non-recurring costs:      
    Income tax expense (benefit) – deferred   (886 )     5,650  
    Gain on sale of properties   (1,367 )     –  
    Litigation settlement   –       –  
    Tax effect of adjustments   (12 )     (39 )
    Adjusted net income (loss) $ 5,087     $ 9,777  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Net Income (Loss) to Adjusted Net Income (Loss)
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
    Reconciliation of Adjusted Net Income (Loss):      
    Net income (loss) $ 12,946     $ 392,750  
    Unrealized (gain) loss on commodity derivatives   20,457       (47,958 )
    Acquisition and divestiture related costs   1,633       219  
    Non-recurring costs:      
    Income tax expense (benefit) – deferred1   2,196       (253,796 )
    Gain on sale of properties   (1,367 )     –  
    Litigation settlement2   –       (84,875 )
    Tax effect of adjustments3   (56 )     17,778  
    Adjusted net income (loss) $ 35,809     $ 24,118  
      (1) In 2023, we achieved three years of cumulative book income which resulted in the release of our valuation allowance of $284.9 million.
      (2) In 2023, non-recurring costs included a litigation settlement with the shipping companies and the containerships whose anchors struck the Company’s pipeline.
      (3) The federal statutory rates were utilized for all periods presented.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Cash General and Administrative Expenses
                   
      Three Months      Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
                   
    General and administrative expense $ 9,486     $ 8,251  
    Less: Share-based compensation expense   1,686       1,815  
    Less: Acquisition and divestiture costs   1,424       186  
    Less: Bad debt expense   28       26  
    Less: Severance payments   —       —  
    Total Cash General and Administrative Expense $ 6,348     $ 6,224  
                   
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Cash General and Administrative Expenses
                   
      Twelve Months      Twelve Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   December 31, 2023
                   
    General and administrative expense $ 35,895     $ 32,984  
    Less: Share-based compensation expense   6,799       5,280  
    Less: Acquisition and divestiture costs   1,633       219  
    Less: Bad debt expense   80       98  
    Less: Severance payments   344       965  
    Total Cash General and Administrative Expense $ 27,039     $ 26,422  
                   
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Revenue Payables in Suspense
           
      Three Months      Twelve Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   December 31, 2024
           
           
    Oil and natural gas sales $ –     $ 4,023  
    Other revenues   –       4,829  
    Severance tax and other deducts   –       (433 )
    Total net revenue $ –     $ 8,419  
           
    Production volumes:      
    Oil (MBbls)   –       33  
    NGLs (MBbls)   –       31  
    Natural gas (MMcf)   –       441  
    Total (Mboe)   –       138  
    Total (Mboe/d)   –       0.38  
           
        As of       As of  
      December 31,       December 31,  
      2024       2023  
    Standardized measure of future net cash flows, discounted at 10% ($ M)   $608,239       $626,131  
    Add: PV of future income tax, discounted at 10% ($ M)   $127,526       $130,882  
    PV-10 ($ M)   $735,765       $757,013  
                   

    The MIL Network –

  • MIL-OSI: Zscaler Reports Second Quarter Fiscal 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter Highlights

    • Revenue grows 23% year-over-year to $647.9 million
    • Calculated billings grows 18% year-over-year to $742.7 million
    • Deferred revenue grows 25% year-over-year to $1,878.5 million
    • GAAP net loss of $7.7 million compared to GAAP net loss of $28.5 million on a year-over-year basis
    • Non-GAAP net income of $127.1 million compared to non-GAAP net income of $99.4 million on a year-over-year basis

    SAN JOSE, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its second quarter of fiscal year 2025, ended January 31, 2025.

    “Growing adoption of Zero Trust and AI is driving strong demand for our platform, resulting in yet another strong quarter that exceeded our guidance on both top and bottom line. We are leading the industry towards Zero Trust Everywhere by transforming security from legacy appliance-based to a Zero Trust architecture,” said Jay Chaudhry, Chairman and CEO of Zscaler. “By combining AI with Zero Trust, we are delivering several key innovations to secure our customers’ use of AI applications, creating new avenues of growth.”

    Second Quarter Fiscal 2025 Financial Highlights

    • Revenue: $647.9 million, an increase of 23% year-over-year.
    • Income (loss) from operations: GAAP loss from operations was $40.1 million, or 6% of revenue, compared to $45.5 million, or 9% of revenue, in the second quarter of fiscal 2024. Non-GAAP income from operations was $140.5 million, or 22% of revenue, compared to $103.2 million, or 20% of revenue, in the second quarter of fiscal 2024.
    • Net income (loss): GAAP net loss was $7.7 million, compared to $28.5 million in the second quarter of fiscal 2024. Non-GAAP net income was $127.1 million, compared to $99.4 million in the second quarter of fiscal 2024.
    • Net income (loss) per share, diluted: GAAP net loss per share was $0.05, compared to $0.19 in the second quarter of fiscal 2024. Non-GAAP net income per share was $0.78, compared to $0.63 in the second quarter of fiscal 2024.
    • Cash flows: Cash provided by operations was $179.4 million, or 27% of revenue, compared to $142.1 million, or 27% of revenue, in the second quarter of fiscal 2024. Free cash flow was $143.4 million, or 22% of revenue, compared to $100.8 million, or 19% of revenue, in the second quarter of fiscal 2024.
    • Deferred revenue: $1,878.5 million as of January 31, 2025, an increase of 25% year-over-year.
    • Cash, cash equivalents and short-term investments: $2,880.2 million as of January 31, 2025, an increase of $470.6 million from July 31, 2024.

    Recent Business Highlights

    • Introduced the industry’s first Zero Trust Segmentation solution for branches and cloud environments. The new solution improves customers’ security posture by preventing lateral movement from ransomware attacks, while cutting firewall and infrastructure spend in half.
    • Started offering the Zero Trust Network Access (ZTNA) service natively integrated within RISE with SAP. Zscaler Private Access™ (ZPA™) for SAP helps enable SAP customers with on-premises ERP workloads to simplify and de-risk their cloud migration, without the complexity and risk associated with traditional VPNs.
    • Appointed Phil Tee as EVP of AI Innovations. Tee previously co-founded an enterprise AI-driven provider of intelligent monitoring solutions for DevOps and ITOps.
    • Achieved FedRAMP authorization for Zscaler Zero Trust Browser. The authorization assures agencies of compliance with rigorous security standards, facilitating cloud adoption and streamlining the procurement process.
    • Announced that Nokia, a multinational technology leader, is migrating from its traditional firewall-based security model to the Zscaler Zero Trust Exchange to enhance its security, improve operational efficiency, and strengthen cloud capabilities.

    Change in Non-GAAP Measures Presentation

    Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods in fiscal 2025 and beyond. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    Financial Outlook

    For the third quarter of fiscal 2025, we expect:

    • Revenue of $665 million to $667 million
    • Non-GAAP income from operations of $140 million to $142 million
    • Non-GAAP net income per share of approximately $0.75 to $0.76, assuming approximately 163 million fully diluted shares outstanding and a non-GAAP tax rate of 23%

    For the full year of fiscal 2025, we expect:

    • Revenue of approximately $2.640 billion to $2.654 billion
    • Calculated billings of $3.153 billion to $3.168 billion
    • Non-GAAP income from operations of $562 million to $572 million
    • Non-GAAP net income per share of $3.04 to $3.09, assuming approximately 163.5 million fully diluted shares outstanding and a non-GAAP tax rate of 23%

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

    Guidance for non-GAAP income from operations excludes stock-based compensation expense and related employer payroll taxes, amortization of debt issuance costs, and amortization expense of acquired intangible assets. We have not reconciled our expectations of non-GAAP income from operations and non-GAAP net income per share to their most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. For those reasons, we are also unable to address the probable significance of the unavailable information, the variability of which may have a significant impact on future results. Accordingly, a reconciliation for the guidance for non-GAAP income from operations and non-GAAP net income per share is not available without unreasonable effort.

    For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

    Conference Call and Webcast Information

    Zscaler will host a conference call for analysts and investors to discuss its second quarter of fiscal 2025 and outlook for its third quarter of fiscal 2025 and full year fiscal 2025 today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time).

    Date: Wednesday, March 5, 2025
    Time: 1:30 p.m. PT
    Webcast: https://ir.zscaler.com 
    Dial-in: To join by phone, register at the following link: (https://register.vevent.com/register/BI81201a44d72f48cab018ea30aa79b03b). After registering, you will be provided with a dial-in number and a personal PIN that you will need to join the call.
       

    Upcoming Conferences

    Third quarter of fiscal 2025 investor conference participation schedule:

    • Morgan Stanley Technology, Media and Telecom Conference in San Francisco
      Thursday, March 6, 2025
    • Susquehanna Travel, Tech + Gambling Forum (Virtual)
      Friday, March 7, 2025
    • Loop Capital Markets 2025 Investor Conference (Virtual)
      Monday, March 10, 2025
    • Stifel Technology 2025 Technology One-on-One Conference in New York City
      Tuesday, March 11, 2025
    • Cantor Global Technology Conference in New York City
      Wednesday, March 12, 2025

    Sessions which offer a webcast will be available on the Investor Relations section of the Zscaler website at https://ir.zscaler.com/

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our future financial and operating performance, including our financial outlook for the third quarter of fiscal 2025 and full year fiscal 2025. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including but not limited to: macroeconomic influences and instability, geopolitical events, operations and financial results and the economy in general; risks related to the use of AI in our platform; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new products and subscriptions and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; useful lives of our assets and other estimates; and general market, political, economic and business conditions.

    Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in our filings and reports with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2024 filed on December 5, 2024 and our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed on September 12, 2024, as well as future filings and reports by us, copies of which are available on our website at ir.zscaler.com and on the SEC’s website at www.sec.gov. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    Use of Non-GAAP Financial Information

    We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

    About Zscaler

    Zscaler (Nasdaq: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.

    Zscaler™ and the other trademarks listed at https://www.zscaler.com/legal/trademarks are either (i) registered trademarks or service marks or (ii) trademarks or service marks of Zscaler, Inc. in the United States and/or other countries. Any other trademarks are the properties of their respective owners.

    Investor Relations Contacts

    Ashwin Kesireddy
    VP, Investor Relations and Strategic Finance
    (415) 798-1475
    ir@zscaler.com

    Natalia Wodecki
    Media Relations Contact
    press@zscaler.com

     
    ZSCALER, INC.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
    Cost of revenue(1) (2)   148,498       117,199       289,960       228,593  
    Gross profit   499,402       407,800       985,895       793,109  
    Operating expenses:              
    Sales and marketing(1) (2)   307,872       276,481       613,959       543,592  
    Research and development(1) (2)   170,860       122,181       325,114       235,720  
    General and administrative(1)   60,810       54,595       117,629       105,311  
    Total operating expenses   539,542       453,257       1,056,702       884,623  
    Loss from operations   (40,140 )     (45,457 )     (70,807 )     (91,514 )
    Interest income   30,878       28,385       60,926       54,327  
    Interest expense(3)   (2,339 )     (3,605 )     (5,482 )     (6,764 )
    Other income (expense), net   (4,936 )     172       (5,588 )     (1,040 )
    Loss before income taxes   (16,537 )     (20,505 )     (20,951 )     (44,991 )
    Provision for (benefit from) for income taxes(4)   (8,813 )     7,964       (1,176 )     16,961  
    Net loss $ (7,724 )   $ (28,469 )   $ (19,775 )   $ (61,952 )
    Net loss per share, basic and diluted $ (0.05 )   $ (0.19 )   $ (0.13 )   $ (0.42 )
    Weighted-average shares used in computing net loss per share, basic and diluted   153,672       148,951       153,114       148,287  
    (1) Includes stock-based compensation expense and related payroll taxes as follows:
    Cost of revenue $ 17,619     $ 13,434     $ 33,412     $ 26,389  
    Sales and marketing   69,979       65,855       134,845       124,523  
    Research and development   65,896       44,120       124,761       85,163  
    General and administrative   22,862       22,127       43,912       42,190  
    Total $ 176,356     $ 145,536     $ 336,930     $ 278,265  
    (2) Includes amortization expense of acquired intangible assets as follows:
    Cost of revenue $ 3,815     $ 2,717     $ 7,490     $ 5,434  
    Sales and marketing   425       226       850       452  
    Research and development   5       140       145       233  
    Total $ 4,245     $ 3,083     $ 8,485     $ 6,119  
    (3) Includes amortization of debt issuance costs $ 982     $ 978     $ 1,963     $ 1,955  
    (4) Benefit from a release of valuation allowance (*) $ 17,188     $ —     $ 17,188     $ —  
                                   

    (*) During the three months ended January 31, 2025, we recognized a tax benefit of $17.2 million attributable to the release of the valuation allowance on United Kingdom (U.K.) deferred tax assets.

     
    ZSCALER, INC.
    Condensed Consolidated Balance Sheets
    (in thousands)
    (unaudited)
      January 31,   July 31,
      2025   2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 1,758,506     $ 1,423,080  
    Short-term investments   1,121,734       986,574  
    Accounts receivable, net   514,314       736,529  
    Deferred contract acquisition costs   156,079       148,873  
    Prepaid expenses and other current assets   114,573       101,561  
    Total current assets   3,665,206       3,396,617  
    Property and equipment, net   422,315       383,121  
    Operating lease right-of-use assets   83,703       89,758  
    Deferred contract acquisition costs, noncurrent   284,286       296,525  
    Acquired intangible assets, net   55,658       63,835  
    Goodwill   417,730       417,029  
    Other noncurrent assets   77,070       58,083  
    Total assets $ 5,005,968     $ 4,704,968  
           
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 24,600     $ 23,309  
    Accrued expenses and other current liabilities   90,626       91,708  
    Accrued compensation   140,430       160,810  
    Deferred revenue   1,595,780       1,643,919  
    Convertible senior notes   1,147,513       1,142,275  
    Operating lease liabilities   49,917       50,866  
    Total current liabilities   3,048,866       3,112,887  
    Deferred revenue, noncurrent   282,725       251,055  
    Operating lease liabilities, noncurrent   40,912       44,824  
    Other noncurrent liabilities   26,119       22,100  
    Total liabilities   3,398,622       3,430,866  
    Stockholders’ Equity      
    Common stock   155       152  
    Additional paid-in capital   2,797,350       2,426,819  
    Accumulated other comprehensive loss   (22,304 )     (4,789 )
    Accumulated deficit   (1,167,855 )     (1,148,080 )
    Total stockholders’ equity   1,607,346       1,274,102  
    Total liabilities and stockholders’ equity $ 5,005,968     $ 4,704,968  
                   
     
    ZSCALER, INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
      Six Months Ended
      January 31,
      2025   2024
    Cash Flows from Operating Activities      
    Net loss $ (19,775 )   $ (61,952 )
    Adjustments to reconcile net loss to cash provided by operating activities:      
    Depreciation and amortization expense   45,911       29,361  
    Amortization expense of acquired intangible assets   8,485       6,119  
    Amortization of deferred contract acquisition costs   79,191       61,504  
    Amortization of debt issuance costs   1,963       1,955  
    Non-cash operating lease costs   31,565       21,633  
    Stock-based compensation expense   329,295       269,570  
    Accretion of investments purchased at a discount   (10,110 )     (9,582 )
    Unrealized losses on hedging transactions   3,036       2,841  
    Deferred income taxes   (17,359 )     (1,437 )
    Other   1,303       1,403  
    Changes in operating assets and liabilities, net of effects of business acquisitions:      
    Accounts receivable   222,043       102,374  
    Deferred contract acquisition costs   (74,158 )     (67,744 )
    Prepaid expenses, other current and noncurrent assets   (12,144 )     2,660  
    Accounts payable   98       (2,412 )
    Accrued expenses, other current and noncurrent liabilities   (11,481 )     6,020  
    Accrued compensation   (20,380 )     562  
    Deferred revenue   (16,469 )     62,477  
    Operating lease liabilities   (30,246 )     (22,477 )
    Net cash provided by operating activities   510,768       402,875  
    Cash Flows from Investing Activities      
    Purchases of property, equipment and other assets   (32,043 )     (59,553 )
    Capitalized internal-use software   (43,416 )     (17,816 )
    Payments for business acquisitions, net of cash acquired   (834 )     (4,377 )
    Purchase of strategic investments   (786 )     (2,000 )
    Purchases of short-term investments   (729,066 )     (761,796 )
    Proceeds from maturities of short-term investments   605,003       594,687  
    Proceeds from sale of short-term investments   —       2,105  
    Net cash used in investing activities   (201,142 )     (248,750 )
    Cash Flows from Financing Activities      
    Proceeds from issuance of common stock upon exercise of stock options   3,456       3,848  
    Proceeds from issuance of common stock under the employee stock purchase plan   22,344       18,407  
    Net cash provided by financing activities   25,800       22,255  
    Net increase in cash and cash equivalents   335,426       176,380  
    Cash and cash equivalents at beginning of period   1,423,080       1,262,206  
    Cash and cash equivalents at end of period $ 1,758,506     $ 1,438,586  
                   
     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except percentages)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
                   
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
                   
    Non-GAAP Gross Profit and Non-GAAP Gross Margin              
    GAAP gross profit $ 499,402     $ 407,800     $ 985,895     $ 793,109  
    Add: Stock-based compensation expense and related payroll taxes   17,619       13,434       33,412       26,389  
    Add: Amortization expense of acquired intangible assets   3,815       2,717       7,490       5,434  
    Non-GAAP gross profit $ 520,836     $ 423,951     $ 1,026,797     $ 824,932  
    GAAP gross margin   77 %     78 %     77 %     78 %
    Non-GAAP gross margin   80 %     81 %     80 %     81 %
                   
    Non-GAAP Income from Operations and Non-GAAP Operating Margin              
    GAAP loss from operations $ (40,140 )   $ (45,457 )   $ (70,807 )   $ (91,514 )
    Add: Stock-based compensation expense and related payroll taxes   176,356       145,536       336,930       278,265  
    Add: Amortization expense of acquired intangible assets   4,245       3,083       8,485       6,119  
    Non-GAAP income from operations $ 140,461     $ 103,162     $ 274,608     $ 192,870  
    GAAP operating margin (6 )%   (9 )%   (6 )%   (9 )%
    Non-GAAP operating margin   22 %     20 %     22 %     19 %
                                   
     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except per share amounts)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Non-GAAP Net Income per Share, Diluted              
    GAAP net loss $ (7,724 )   $ (28,469 )   $ (19,775 )   $ (61,952 )
    Add: GAAP provision for (benefit from) income taxes   (8,813 )     7,964       (1,176 )     16,961  
    GAAP loss before income taxes   (16,537 )     (20,505 )     (20,951 )     (44,991 )
    Add:              
    Stock-based compensation expense and related payroll taxes   176,356       145,536       336,930       278,265  
    Amortization expense of acquired intangible assets   4,245       3,083       8,485       6,119  
    Amortization of debt issuance costs   982       978       1,963       1,955  
    Non-GAAP net income before income taxes   165,046       129,092       326,427       241,348  
    Non-GAAP provision for income taxes(1)   37,965       29,691       75,083       55,510  
    Non-GAAP net income $ 127,081     $ 99,401     $ 251,344     $ 185,838  
                   
    GAAP provision for (benefit from) income taxes $ (8,813 )   $ 7,964     $ (1,176 )   $ 16,961  
    Add: Income tax and other tax adjustments(2)   46,778       21,727       76,259       38,549  
    Non-GAAP provision for income taxes(1) $ 37,965     $ 29,691     $ 75,083     $ 55,510  
    Non-GAAP effective tax rate(1)   23 %     23 %     23 %     23 %
                   
    Non-GAAP net income   127,081       99,401       251,344       185,838  
    Add: Non-GAAP interest expense, net of tax related to the convertible senior notes   276       276       552       552  
    Numerator used in computing non-GAAP net income per share, diluted $ 127,357     $ 99,677     $ 251,896     $ 186,390  
                   
    GAAP net loss per share, diluted $ (0.05 )   $ (0.19 )   $ (0.13 )   $ (0.42 )
    Stock-based compensation expense and related payroll taxes   1.09       0.91       2.08       1.75  
    Amortization expense of acquired intangible assets   0.03       0.02       0.05       0.04  
    Amortization of debt issuance costs   0.01       0.01       0.01       0.01  
    Income tax and other tax adjustments(2)   (0.29 )     (0.14 )     (0.47 )     (0.24 )
    Non-GAAP interest expense related to the convertible senior notes   —       —       —       —  
    Adjustment to total fully diluted earnings per share(3)   (0.01 )     0.02       0.01       0.03  
    Non-GAAP net income per share, diluted $ 0.78     $ 0.63     $ 1.55     $ 1.17  
                   
    Weighted-average shares used in computing GAAP net loss per share, diluted   153,672       148,951       153,114       148,287  
    Add: Outstanding potentially dilutive equity incentive awards   2,988       4,670       2,848       4,226  
    Add: Convertible senior notes   7,626       7,626       7,626       7,626  
    Less: Antidilutive impact of capped call transactions(4)   (1,769 )     (2,093 )     (1,505 )     (1,254 )
    Weighted-average shares used in computing non-GAAP net income per share, diluted   162,517       159,154       162,083       158,885  

    ___________

    (1) Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods in fiscal 2025 and beyond. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    (2) Consists of income tax adjustments related to our long-term non-GAAP effective tax rate of 23%. In the three months ended January 31, 2025, the adjustments exclude the tax benefit of $17.2 million attributable to the release of the valuation allowance on U.K. deferred tax assets.

    (3) The sum of the fully diluted earnings per share impact of individual reconciling items may not total to fully diluted non-GAAP net income per share due to the weighted-average shares used in computing the GAAP net loss per share differs from the weighted-average shares used in computing the non-GAAP net income per share, and due to rounding of the individual reconciling items. The GAAP net loss per share calculation uses a lower share count as it excludes potentially dilutive shares, which are included in calculating the non-GAAP net income per share.

    (4) We exclude the in-the-money portion of the convertible senior notes for non-GAAP weighted-average diluted shares as they are covered by our capped call transactions. Our outstanding capped call transactions are antidilutive under GAAP but are expected to mitigate the dilutive effect of the convertible senior notes and therefore are included in the calculation of non-GAAP diluted shares outstanding. The capped calls have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price.

     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except percentages)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Calculated Billings              
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
    Add: Total deferred revenue, end of period   1,878,505       1,502,175       1,878,505       1,502,175  
    Less: Total deferred revenue, beginning of period   (1,783,720 )     (1,399,544 )     (1,894,974 )     (1,439,676 )
    Calculated billings $ 742,685     $ 627,630     $ 1,259,386     $ 1,084,201  
                   
    Free Cash Flow              
    Net cash provided by operating activities $ 179,433     $ 142,069     $ 510,768     $ 402,875  
    Less: Purchases of property, equipment and other assets   (15,018 )     (30,894 )     (32,043 )     (59,553 )
    Less: Capitalized internal-use software   (20,987 )     (10,387 )     (43,416 )     (17,816 )
    Free cash flow $ 143,428     $ 100,788     $ 435,309     $ 325,506  
                   
    Free Cash Flow Margin              
    Net cash provided by operating activities, as a percentage of revenue   27 %     27 %     40 %     39 %
    Less: Purchases of property, equipment and other assets, as a percentage of revenue (2 )%   (6 )%   (3 )%   (6 )%
    Less: Capitalized internal-use software, as a percentage of revenue (3 )%   (2 )%   (3 )%   (2 )%
    Free cash flow margin   22 %     19 %     34 %     32 %
                                   
     
    ZSCALER, INC.
    Explanation of Non-GAAP Financial Measures
     

    In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, as it has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In particular, free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of our historical non-GAAP financial measures to their most directly comparable financial measures stated in accordance with GAAP has been included in this press release. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review these reconciliations, and not to rely on any single financial measure to evaluate our business.

    Expenses Excluded from Non-GAAP Measures

    Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer payroll taxes related to stock-based compensation, which is a cash expense, are excluded because these are tied to the timing and size of the exercise or vesting of the underlying equity incentive awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business. Amortization expense of acquired intangible assets and amortization of debt issuance costs from the convertible senior notes are excluded because these are non-cash expenses and are not reflective of our ongoing operational performance.

    Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    Non-GAAP Financial Measures

    Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define non-GAAP gross profit as GAAP gross profit excluding stock-based compensation expense and related employer payroll taxes and amortization expense of acquired intangible assets. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

    Non-GAAP Income from Operations and Non-GAAP Operating Margin. We define non-GAAP income from operations as GAAP loss from operations excluding stock-based compensation expense and related employer payroll taxes and amortization expense of acquired intangible assets. We define non-GAAP operating margin as non-GAAP income from operations as a percentage of revenue.

    Non-GAAP Net Income per Share, Diluted. We define non-GAAP net income as GAAP net loss excluding stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets, amortization of debt issuance costs, and the non-GAAP provision for income taxes adjustment. We define non-GAAP net income per share, diluted, as non-GAAP net income plus the non-GAAP interest expense related to the convertible senior notes divided by the weighted-average diluted shares outstanding, which includes the effect of potentially diluted common stock equivalents outstanding during the period and the anti-dilutive impact of the capped call transactions entered into in connection with the convertible senior notes.

    Calculated Billings. We define calculated billings as revenue plus the change in deferred revenue in a period. Calculated billings in any particular period aims to reflect amounts invoiced for subscriptions to access our cloud platform, together with related support services for our new and existing customers. We typically invoice our customers annually in advance, and to a lesser extent quarterly in advance, monthly in advance or multi-year in advance.

    Free Cash Flow and Free Cash Flow Margin. We define free cash flow as net cash provided by operating activities less purchases of property, equipment and other assets and capitalized internal-use software. We define free cash flow margin as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our operations that, after the investments in property, equipment and other assets and capitalized internal-use software, can be used for strategic initiatives.

    The MIL Network –

  • MIL-OSI: Silvaco Reports Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Achieved record gross bookings of $65.8 million and revenue of $59.7 million in full-year 2024

    Signed 46 new customers in 2024 and expanded relationship with existing customers across key markets including power, automotive, memory, foundry, and display

    Expanded Product Portfolio with the Acquisition of Cadence’s Process Proximity Compensation Product Line

    SANTA CLARA, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, today announced its fourth quarter and full year 2024 results.

    “We are proud to close out the year with strong momentum and growing customer traction, including 46 new customer wins in 2024 and multiple bookings on our AI based, flagship FTCO platform,” said Dr. Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued, “Our first acquisition as a public company marks a significant milestone in executing our M&A strategy for talent, technology and expanding through inorganic growth. With a continued focus on innovation and execution, we are well-positioned to build on this success and drive further growth in 2025 for our EDA and TCAD product lines.”

    Fourth Quarter 2024 and Recent Business Highlights

    • Acquired 13 new customers across key markets including Photonics, Power, Automotive, Memory, and Foundry, which represented approximately 9% of gross bookings for the quarter.
    • Announced a partnership with Micon Global to expand Silvaco’s reach across the EMEA market, leveraging Micon’s expertise to deliver cutting-edge TCAD, EDA, and SIP solutions to new customers.
    • Joined the SMART USA Institute under the CHIPS Manufacturing USA program to advance digital twin technologies in semiconductor manufacturing, reinforcing Silvaco’s leadership in innovation. We received our first booking from this program.
    • Received a $5.0 million follow-on order for FTCO™ digital-twin modeling product from a strategic memory customer. This order extends the footprint of our FTCO™ product line and further validates our strategic focus on this unique technology.
    • Achieved ISO 9001 certification, underscoring Silvaco’s commitment to quality and continuous improvement across its TCAD, EDA, and SIP product portfolio.
    • On March 4, 2025, Silvaco closed the acquisition of the Process Proximity Compensation (PPC) product line from Cadence Design Systems, Inc. The addition, an optical proximity correction suite of tools, is highly complementary to Silvaco’s EDA and TCAD tool suites.

    Full Year 2024 Business Highlights

    • Acquired 46 new customers across key markets including Power, Automotive, Government/Mil-Aero, Photonics, IOT, 5G/6G, Memory, and Foundry, which represented approximately 10% of gross bookings for the year.
    • Expanded Victory TCAD and Digital Twin Modeling Platform to Planar CMOS, FinFET and Advanced CMOS Technologies which is a necessary step to enable FTCO for Advanced Process.
    • Silvaco Announced that the Ninth Circuit Court of Appeals affirmed the dismissal of all claims against Silvaco brought by Aldini AG.
    • Silvaco was added to the Russell 2000®, Russell 3000®, and Russell Microcap® indexes in September 2024.
    • Completed initial public offering in May 2024, raising $106 million net of underwriters’ fees.

    Fourth Quarter 2024 Financial Results

    GAAP Financial Results

    • Revenue of $17.9 million, up 43% year-over-year and up 63% quarter-over-quarter.
      • TCAD revenue of $12.7 million, up 65% year-over-year.
      • EDA revenue of $4.2 million, up 57% year-over-year.
      • SIP revenue of $0.9 million, down 57% year-over-year.
    • GAAP gross profit and GAAP gross margin were $15.4 million and 86%, respectively, which includes the impact of $194,000 stock-based compensation expense, $249,000 amortization of acquired intangible assets, and $80,000 payroll taxes from the RSU lockup release, up from $9.8 million and 79% in Q4 2023.
    • GAAP net income of $4.2 million, compared to a GAAP net loss of $2.2 million in Q4 2023.
    • GAAP basic and diluted net income per share of $0.14, compared to GAAP basic and diluted net loss per share of $(0.11) in Q4 2023.
    • As of December 31, 2024, cash and cash equivalents and marketable securities totaled $87.5 million.

    Key Operating Indicators and Non-GAAP Financial Results:

    • Gross bookings were $20.3 million, up 30% year-over-year.
    • As of December 31, 2024, the remaining performance obligation balance of $34.3 million, 46% of which is expected to be recognized as revenue in the next 12 months.
    • Non-GAAP gross profit and non-GAAP gross margin were $16.0 million and 89%, respectively, up from $9.8 million and 79% year-over-year.
    • Non-GAAP net income of $4.3 million, compared to Non-GAAP net loss of $(1.6) million in Q4 2023.
    • Non-GAAP diluted net income per share of $0.15, compared to Non-GAAP diluted net loss per share of $(0.08) in Q4 2023.

    Full Year 2024 Financial Results

    GAAP Financial Results

    • Revenue of $59.7 million, up 10% year-over-year.
      • TCAD revenue of $40.2 million, up 25% year-over-year.
      • EDA revenue of $14.6 million, up 4% year-over-year.
      • SIP revenue of $4.9 million, down 40% year-over-year.
    • GAAP gross profit and GAAP gross margin were $47.6 million and 80%, respectively, which includes the impact of $3.0 million stock-based compensation expense, $747,000 amortization of acquired intangible assets, and $80,000 payroll taxes from the RSU lockup release, up from $44.9 million and down from 83% in 2023.
    • GAAP net loss of $(39.4) million, compared to $(0.3) million in 2023.
    • GAAP basic and diluted net loss per share of $(1.53), compared to $(0.02) in 2023.

    Key Operating Indicators and Non-GAAP Financial Results:

    • Gross bookings were $65.8 million, up 13% year-over-year.
    • Non-GAAP gross profit and non-GAAP gross margin were $51.4 million and 86%, respectively, up from $44.9 million and 83% year over year.
    • Non-GAAP net income of $6.7 million, compared to $3.4 million in 2023.
    • Non-GAAP diluted net income per share of $0.25, compared to $0.17 in 2023.

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

    Supplementary materials to this press release, including our fourth quarter 2024 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

    First Quarter and Full Year 2025 Financial Outlook

    As of March 5, 2025, Silvaco is providing guidance for its first quarter of 2025 and its full-year 2025, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin, non-GAAP operating income (loss) and non-GAAP diluted net income (loss) per share. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin, GAAP operating income (loss) is the most comparable GAAP measure to non-GAAP operating income (loss). GAAP diluted net income (loss) per share is the most comparable GAAP measure to non-GAAP diluted net income (loss) per share. Non-GAAP gross margin differs from GAAP gross margin in that it excludes items such as stock-based compensation expense, amortization of acquired intangible assets, and payroll tax from the IPO lock-up release. Non-GAAP operating income (loss) differs from GAAP operating income (loss) in that it excludes items such as acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, IPO preparation costs, and executive severance costs. Non-GAAP diluted net income (loss) per share differs from GAAP diluted net income (loss) per share in that it excludes certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, executive severance costs, change in fair value of contingent consideration, foreign exchange (gain) loss, loss on debt extinguishment, and the income tax effect on non-GAAP items. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin, GAAP operating income or GAAP diluted net income (loss) per share or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income or non-GAAP diluted net income (loss) per share guidance to GAAP gross margin or GAAP operating income or GAAP diluted net income (loss) per share, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

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

    • Gross bookings in the range of $16.0 million to $19.0 million, which would compare to $16.1 million in the first quarter of 2024.
    • Revenue in the range of $14.5 million to $17.0 million, which would compare to $15.9 million in the first quarter of 2024.
    • Non-GAAP gross margin in the range of 84% to 87%, which would compare to 88% in the first quarter of 2024.
    • Non-GAAP operating income in the range of ($1.0) million loss to $1.0 million income, compared to $3.3 million in the first quarter of 2024.
    • Non-GAAP diluted net income per share in the range of ($0.03) loss to $0.03, compared to $0.12 in the first quarter of 2024.

    For full year 2025, the Company expects:

    • Gross bookings in the range of $72.0 million to $79.0 million, which would represent a 9% to 20% increase from $65.8 million in 2024.
    • Revenue in the range of $66.0 million to $72.0 million, which would represent a 11% to 21% increase from $59.7 million in 2024.
    • Non-GAAP gross margin in the range of 84.0% to 89.0%, which would compare to 86% in 2024.
    • Non-GAAP operating income in the range of $2.0 million to $7.0 million, which would compare to $5.5 million in 2024.
    • Non-GAAP diluted net income per share in the range of $0.07 to $0.19, compared to $0.25 in 2024.

    Q4 2024 Conference Call Details

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

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

    About Silvaco

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

    Safe Harbor Statement

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

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

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

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

    Discussion of Non-GAAP Financial Measures

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

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

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

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

           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in thousands except share and par value amounts)
      December 31,   December 31,
      2024   2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 19,606     $ 4,421  
    Short-term marketable securities   63,071       –  
    Accounts receivable, net   9,211       4,006  
    Contract assets, net   11,932       8,749  
    Prepaid expenses and other current assets   3,460       2,549  
    Deferred transaction costs   –       1,163  
    Total current assets   107,280       20,888  
    Non-current assets:      
    Non-current marketable securities   4,785       –  
    Property and equipment, net   865       591  
    Operating lease right-of-use assets, net   1,711       1,963  
    Intangible assets, net   4,369       342  
    Goodwill   9,026       9,026  
    Non-current portion of contract assets, net   12,611       6,250  
    Other assets   1,698       1,825  
    Total non-current assets   35,065       19,997  
    Total assets $ 142,345     $ 40,885  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 3,316     $ 2,495  
    Accrued expenses and other current liabilities   19,801       10,255  
    Accrued income taxes   1,668       1,626  
    Deferred revenue, current   7,497       7,882  
    Operating lease liabilities, current   744       735  
    Related party line of credit   –       2,000  
    Vendor financing obligations, current   1,462       –  
    Total current liabilities   34,488       24,993  
    Non-current liabilities:      
    Deferred revenue, non-current   3,593       5,071  
    Operating lease liabilities, non-current   946       1,198  
    Vendor financing obligations, non-current   2,928       –  
    Other non-current liabilities   307       221  
    Total liabilities   42,262       31,483  
    Commitments and contingencies      
    Stockholders’ equity      
    Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024; no shares authorized as of December 31, 2023   –       –  
    Common stock, $0.0001 par value; 500,000,000 shares authorized; 28,526,615 shares issued and outstanding as of December 31, 2024; 25,000,000 shares authorized; 20,000,000 shares issued and outstanding as of December 31, 2023   3       2  
    Additional paid-in capital   130,360       –  
    (Accumulated deficit) Retained earnings   (28,012 )     11,392  
    Accumulated other comprehensive loss   (2,268 )     (1,992 )
    Total stockholders’ equity   100,083       9,402  
    Total liabilities and stockholders’ equity $ 142,345     $ 40,885  
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited, in thousands except share and per share amounts)
                   
      Three months Ended December 31,   Twelve months Ended December 31,
        2024       2023       2024       2023  
                   
    Revenue:              
    Software license revenue $ 13,870     $ 8,738     $ 43,991     $ 39,331  
    Maintenance and service   3,989       3,748       15,689       14,915  
    Total revenue   17,859       12,486       59,680       54,246  
    Cost of revenue   2,422       2,682       12,042       9,354  
    Gross profit   15,437       9,804       47,638       44,892  
    Operating expenses:              
    Research and development   5,283       3,337       20,740       13,170  
    Selling and marketing   3,983       3,833       18,300       12,707  
    General and administrative   7,529       4,570       37,571       17,881  
    Estimated litigation claim   (3,782 )     –       11,306       –  
    Total operating expenses   13,013       11,740       87,917       43,758  
    Operating (loss) income   2,424       (1,936 )     (40,279 )     1,134  
    Loss on debt extinguishment   –       –       (718 )     –  
    Interest income   1,077       2       2,976       6  
    Interest and other expenses, net   (67 )     (95 )     (899 )     (630 )
    (Loss) income before income tax provision   3,434       (2,029 )     (38,920 )     510  
    Income tax provision (benefit)   (723 )     218       484       826  
    Net (loss) income $ 4,157     $ (2,247 )   $ (39,404 )   $ (316 )
    (Loss) earnings per share attributable to common stockholders:              
    Basic and diluted $ 0.14     $ (0.11 )   $ (1.53 )   $ (0.02 )
    Weighted average shares used in computing per share amounts:              
    Basic and diluted   28,734,082       20,000,000       25,672,845       20,000,000  
                   
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in thousands)
      Year Ended December 31
        2024       2023  
    Cash flows from operating activities:      
    Net loss $ (39,404 )   $ (316 )
    Adjustments to reconcile net loss to net cash (used in) provided by operating activities:      
    Depreciation and amortization   1,285       601  
    Stock-based compensation expense   26,915       –  
    Provision for credit losses   351       220  
    Accretion of discount on marketable securities, net   (1,685 )     –  
    Estimated litigation claim   11,306       –  
    Loss on debt extinguishment   718       –  
    Change in fair value of contingent consideration   (27 )     325  
    Changes in operating assets and liabilities:      
    Accounts receivable   (5,971 )     1,378  
    Contract assets   (10,293 )     (5,208 )
    Prepaid expense and other current assets   (790 )     133  
    Other assets   57       (267 )
    Accounts payable   1,326       156  
    Accrued expenses and other current liabilities   (2,160 )     2,015  
    Accrued income taxes   74       (23 )
    Deferred revenue   (1,585 )     2,268  
    Other non-current liabilities   109       (102 )
    Net cash (used in) provided by operating activities   (19,774 )     1,180  
    Cash flows from investing activities:      
    Purchases of marketable securities   (99,630 )     –  
    Maturities of marketable securities   33,600       –  
    Purchases of property and equipment   (505 )     (339 )
    Net cash used in investing activities   (66,535 )     (339 )
    Cash flows from financing activities:      
    Proceeds from initial public offering, net of underwriting fees   106,020       –  
    Proceeds from issuance of convertible note, net of debt issuance costs   4,852       –  
    Proceeds from loan facility   4,250       –  
    Repayment of loan facility   (4,250 )     –  
    Proceeds from related party line of credit   –       1,000  
    Repayment of related party line of credit   (2,000 )     (1,000 )
    Proceeds from issuance of common stock for share-based awards   315       –  
    Payroll taxes related to shares withheld from employees   (4,575 )     –  
    Deferred transaction costs   (2,649 )     (650 )
    Contingent consideration   (74 )     (1,002 )
    Payments of vendor financing obligation   (588 )     –  
    Net cash provided by (used in) financing activities   101,301       (1,652 )
    Effect of exchange rate fluctuations on cash and cash equivalents   193       (246 )
    Net increase (decrease) in cash and cash equivalents   15,185       (1,057 )
    Cash and cash equivalents, beginning of period   4,421       5,478  
    Cash and cash equivalents, end of period $ 19,606     $ 4,421  
           
    SILVACO GROUP, INC.
    REVENUE
    (Unaudited)
                             
        2023   2024
        Q1 Q2 Q3 Q4 Year   Q1 Q2 Q3 Q4 Year
    Revenue by Region:                        
    Americas   35 % 29 % 31 % 29 % 31 %   27 % 51 % 31 % 40 % 38 %
    APAC   51 % 62 % 61 % 63 % 59 %   62 % 41 % 58 % 52 % 53 %
    EMEA   14 % 9 % 8 % 8 % 10 %   11 % 8 % 11 % 8 % 9 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue by Product Line:                        
    TCAD   62 % 62 % 52 % 62 % 59 %   66 % 69 % 59 % 71 % 68 %
    EDA   29 % 20 % 31 % 22 % 26 %   30 % 20 % 24 % 24 % 24 %
    SIP   9 % 18 % 17 % 16 % 15 %   4 % 11 % 17 % 5 % 8 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue Item Category:                        
    Software license revenue   75 % 71 % 74 % 70 % 73 %   77 % 74 % 62 % 78 % 74 %
    Maintenance and service   25 % 29 % 26 % 30 % 27 %   23 % 26 % 38 % 22 % 26 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue by Country:                        
    United States   34 % 28 % 28 % 28 % 30 %   51 % 30 % 39 % 39 % 37 %
    China   19 % 29 % 16 % 29 % 23 %   17 % 25 % 23 % 23 % 18 %
    Other   47 % 43 % 56 % 43 % 47 %   32 % 45 % 38 % 38 % 45 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
    SILVACO GROUP, INC.
    GAAP to Non-GAAP Reconciliation
    (Unaudited, in thousands except per share amounts)
                   
      Three Months Ended   Twelve Months Ended
      12/31/2024   12/31/2023   12/31/2024   12/31/2023
                   
    GAAP Cost of revenue $ 2,422     $ 2,682     $ 12,042     $ 9,354  
    Less: Stock-based compensation expense   (194 )     –       (2,974 )     –  
    Less: Amortization of acquired intangible assets   (249 )     –       (747 )     –  
    Less: Payroll tax from the IPO lock-up release   (80 )     –       (80 )     –  
    Non-GAAP Cost of revenue $ 1,899     $ 2,682     $ 8,241     $ 9,354  
    GAAP Gross profit $ 15,437     $ 9,804     $ 47,638     $ 44,892  
    Add: Stock-based compensation expense   194       –       2,974       –  
    Add: Amortization of acquired intangible assets   249       –       747       –  
    Add: Payroll tax from the IPO lockup release   80       –       80       –  
    Non-GAAP Gross profit $ 15,960     $ 9,804     $ 51,439     $ 44,892  
    GAAP Research and development $ 5,283     $ 3,337     $ 20,740     $ 13,170  
    Less: Stock-based compensation expense   (535 )     –       (5,091 )     –  
    Less: Executive severance   (215 )     –       (215 )     –  
    Less: Payroll tax from the IPO lock-up release   (397 )     –       (397 )     –  
    Less: Amortization of acquired intangible assets   (43 )     (82 )     (206 )     (339 )
    Non-GAAP Research and development $ 4,093     $ 3,255     $ 14,831     $ 12,831  
    GAAP Sales and marketing $ 3,983     $ 3,833     $ 18,300     $ 12,707  
    Less: Stock-based compensation expense   (388 )     –       (4,319 )     –  
    Less: Payroll tax from the IPO lock-up release   (85 )     –       (85 )     –  
    Less: IPO preparation costs   –       –       (178 )     –  
    Non-GAAP Sales and marketing $ 3,510     $ 3,833     $ 13,718     $ 12,707  
    GAAP General and administrative $ 7,529     $ 4,570     $ 37,571     $ 17,881  
    Less: Stock-based compensation expense   (1,410 )     –       (14,531 )     –  
    Less: Acquisition-related estimated litigation claim and legal costs   (523 )     (515 )     (4,629 )     (1,707 )
    Less: Executive severance   (200 )     –       (200 )     –  
    Less: Payroll tax from the IPO lock-up release   (163 )     –       (163 )     –  
    Less: IPO preparation costs   –       (45 )     (695 )     (1,221 )
    Non-GAAP General and administrative $ 5,233     $ 4,010     $ 17,353     $ 14,953  
    GAAP Estimated Litigation claim $ (3,782 )   $ –     $ 11,306     $ –  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   3,782       –       (11,306 )     –  
    Non-GAAP Litigation claim $ –     $ –     $ –     $ –  
    GAAP Operating expenses $ 13,013     $ 11,740     $ 87,917     $ 43,758  
    Less: Stock-based compensation expense   (2,333 )     –       (23,941 )     –  
    Less: Acquisition-related estimated litigation claim and legal costs   3,259       (515 )     (15,935 )     (1,707 )
    Less: Executive severance   (415 )     –       (415 )     –  
    Less: Payroll tax from the IPO lock-up release   (645 )     –       (645 )     –  
    Less: IPO preparation costs   –       (45 )     (873 )     (1,221 )
    Less: Amortization of acquired intangible assets   (43 )     (82 )     (206 )     (339 )
    Non-GAAP Operating expenses $ 12,836     $ 11,098     $ 45,902     $ 40,491  
    GAAP Operating (loss) income $ 2,424     $ (1,936 )   $ (40,279 )   $ 1,134  
    Add: Stock-based compensation expense   2,527       –       26,915       –  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   (3,259 )     515       15,935       1,707  
    Add: Payroll tax from the IPO lockup release   725       –       725       –  
    Add: Executive severance   415       –       415       –  
    Add: IPO preparation costs   –       45       873       1,221  
    Add: Amortization of acquired intangible assets   292       82       953       339  
    Non-GAAP Operating (loss) income $ 3,124     $ (1,294 )   $ 5,537     $ 4,401  
    GAAP Net (loss) income $ 4,157     $ (2,247 )   $ (39,404 )   $ (316 )
    Add: Stock-based compensation expense   2,527       –       26,915       –  
    Add: Amortization of acquired intangible assets   292       82       953       339  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   (3,259 )     515       15,935       1,707  
    Add: Payroll tax from the IPO lockup release   725       –       725       –  
    Add: Executive Severance   415       –       415       –  
    Add: IPO preparation costs   –       45       873       1,221  
    Add: Loss on debt extinguishment   –       –       718       –  
    Add (Less): Change in fair value of contingent consideration   (9 )     (7 )     (27 )     325  
    Add (Less): Foreign exchange (gain) loss   (14 )     (3 )     404       335  
    Add: Income tax effect of non-GAAP adjustment   (566 )     (27 )     (831 )     (169 )
    Non-GAAP Net (loss) income $ 4,268     $ (1,642 )   $ 6,676     $ 3,442  
    GAAP Net income (loss) per share:              
    Basic and diluted: $ 0.14     $ (0.11 )   $ (1.53 )   $ (0.02 )
    Non-GAAP Net income (loss) per share:              
    Basic $ 0.15     $ (0.08 )   $ 0.26     $ 0.17  
    Diluted $ 0.15     $ (0.08 )   $ 0.25     $ 0.17  
    Weighted average shares used in GAAP and non-GAAP net income (loss) per share:              
    Basic   28,734,082       20,000,000       25,672,845       20,000,000  
    Diluted   28,849,041       20,000,000       26,841,901       20,000,000  
                   

    Investor Contact:
    Greg McNiff
    investors@silvaco.com

    Media Contact:
    Farhad Hayat
    press@silvaco.com

    The MIL Network –

  • MIL-OSI Global: Ending US birthright citizenship could have consequences for LGBTQ+ couples, lower-income parents and the surrogacy market

    Source: The Conversation – France – By Ashley Mantha-Hollands, Max Weber Fellow, Max Weber Programme for Postdoctoral Studies, European University Institute

    The first month of US President Donald Trump’s second term saw an onslaught of executive orders. The order aiming to change how birthright citizenship – the constitutional guarantee of citizenship to most children born within US territory – is granted could be the most consequential. Federal judges in Maryland, Washington state, Massachusetts and New Hampshire have issued nationwide injunctions against the order, and the San Francisco-based US Court of Appeals for the Ninth Circuit rejected the Trump administration’s appeal.

    To date, most media outlets, civil and human rights organisations, and activist groups have expressed concern about how a change to birthright citizenship would impact undocumented people and their children. However, a change could also have a series of further consequences, particularly for children of LGBTQ+ couples and children born through assisted reproductive technologies (ART) such as surrogacy.

    There are at least three related outcomes to consider: tension between federal and state definitions of parentage, a heightened administrative burden for establishing proof of citizenship, and the potential harm to what is the world’s largest surrogacy market.

    Who are the parents? Not so simple

    In countries where children obtain citizenship based on the citizenship of their parents, the legal parameters of the family are of utmost importance. For this reason, countries often provide specific definitions of who “counts” as a parent. In the US, this responsibility falls to the states, which provide their own definitions. One common practice is known as the “parturient” rule, which holds that the person giving birth is the legal “mother” and her spouse the legal “father”. This practice is increasingly contested. With the rise of ART and, in particular, surrogacy, the person giving birth is not always the intended parent. In fact, at least 14 US states have recognized that the parturient rule does not encompass many types of family arrangements and have altered their administrative frameworks so that “intended parents” can be immediately placed on birth certificates.

    While the establishment of parentage occurs at the state level, establishing citizenship is a federal responsibility. As a result, the federal government also provides its own legal definition of parenthood. This definition includes the following family roles: a genetic parent, a non-genetic gestational parent, a non-genetic and non-gestational spouse of a genetic and/or gestational parent, and parents of an adopted child. By contrast, the definitions in Trump’s executive order would spark a return to traditional heteronormative definitions of parentage. The mother is defined as “the immediate female biological progenitor” and the father as “the immediate male biological progenitor”. Such definitions leave out not only most LGBTQ+ couples, but also some families seeking ART, because children born through these modalities may not be biologically related to the intended parents.

    If the order comes into force, it would result in a mismatch between federal and state definitions of parentage and likely invite many legal disputes, while leaving some children born through ART at risk of statelessness if their parents are unrecognized as such. Citizenship is vital to an individual’s personal security: stateless children can, in some cases, be separated from their intended parents. Moreover, without a legal status, children and their families cannot benefit from the full range of federal and state services, including access to the child welfare system, funding opportunities for higher education and health care. For example, according to officials in 24 states, children would lose benefits from the Children’s Health Insurance Program and Supplemental Nutrition Assistance Program, which all US-born babies are currently eligible to receive.

    The bureaucratic burden

    The administrative burden of citizenship recognition for newborns is another overlooked issue in discussions about Trump’s order. In most cases, a birth certificate from a US state is sufficient to prove one’s citizenship status. After a child is born, hospitals normally transmit birth-certified information to the local municipality. The child’s birth certificate is then issued three-to-five business days later. The certificate suffices for recognition of citizenship and for federal documentation such as a passport.

    The executive order would increase the administrative burden for recognising citizenship. It is unclear, however, whether this burden would fall on the states or the federal government.

    In the first scenario, state bureaucracies would need to check the parents’ immigration status prior to issuing a birth certificate. This would undoubtedly cause confusion, as each state would need to provide new guidance and training to local bureaucrats on the medley of US immigration statuses and their attendant rights. The processing times for issuing birth certificates would increase, as verification procedures would require additional documentation. The fees for issuing certificates, currently between $7 and $35, would likely rise as well, since bureaucrats would need to investigate each birth rather than issue certificates automatically.

    If the administrative burden falls on the federal government, birth certificates would be issued in the same way and at the same cost by the states, but they would no longer be sufficient to prove a child’s citizenship. In this case, the government would need to issue citizenship certificates, which are normally reserved for proof of citizenship for children born abroad. Each case would require an individual investigation rather than being automatic, and while it’s hard to say how much fees could rise, current fees for citizenship certificates for children born abroad are north of $1,300. The processing of passport applications would take longer and likely be more costly, too, because a system to verify the immigration status of a child’s parents will need to be set up.

    In 2012, the National Foundation for American Policy (NFAP) released a report that outlined the potential impacts of ending the current approach to birthright citizenship. The report estimates, based on the costs of US citizenship certificates for children born abroad, that changing the existing law – which Trump’s order seeks to reinterpret – would cost parents “approximately $600 in government fees to prove the citizenship status of each baby and likely an additional $600 to $1,000 in legal fees”. The report describes these costs as a “tax” on “each baby born in the United States”.

    Alternately, the US could establish a new national ID card system, but this would also have bureaucratic costs. This type of ID card is common in European countries: with some variation between systems, cards can be used for travel within the EU (as an alternative to a passport) and are generally used to prove citizenship status to vote or receive certain social services. But unlike in the European states that issue these cards, the US government has no registry of vital records and would need a new administrative structure to create one. When the UK government discussed such a system in 2007, its total cost was estimated to be at least 5.75 billion pounds.

    The NFAP report mentions the federal systems that rely on the current practice of state-administered birth certificates and automatic citizenship to function. These systems include the Social Security Administration, which handles retirement, disability and family benefits, and the E-Verify system, which determines whether a person has authorisation to work in the US. The report states that systems such as E-Verify “have cost the American taxpayer billions of dollars. There is no reason to believe that a change to the Citizenship Clause requiring the verification of parents’ immigration status would be any less expensive.”

    Costs to the US surrogacy market

    The US surrogacy industry is the largest in the world. It is valued at over $20 billion (and is expected to grow to $195 billion by 2034), and attracts families from European and Asian countries where surrogacy is not as prevalent or is illegal. An important factor in the size of this market is the attractive environment for surrogacy arrangements. First, surrogacy is relatively mainstreamed in the US, and there are many companies that help with finding donors, surrogates and with navigating the legal process. Second, intended parents have the security of knowing their children will have immediate access to travel documents, such as a US passport, after birth. If a new definition of parentage goes into effect, thus removing the guarantee of US citizenship, the status of children born through surrogacy could be at risk. The attractiveness of the US surrogacy market would likely suffer, because parents would face time-consuming and costly steps to secure status and immigration documents to allow travel between the US and their home country.

    An unclear fate

    The approach to parenthood in the executive order on birthright citizenship aligns with the Trump administration’s overall push toward pronatalism and traditional heterosexual family models. Trump has also signed another executive order expanding access to in vitro fertilization (IVF) for “longing mothers and fathers”. The definition of parentage in this order also leaves out same-sex couples, who often receive IVF treatments.

    The fate of the birthright citizenship order is unclear, and it will likely end up reaching the Supreme Court. Legal debates must include the constitutionality of denying automatic citizenship to US-born children, the effect on children born via assisted reproductive technologies, and the bureaucratic and financial burdens placed on states and parents. While an end to birthright citizenship would immediately affect the children of undocumented people, taking a step back reveals other consequences that could impact the broader US public for generations to come.

    Les auteurs ne travaillent pas, ne conseillent pas, ne possèdent pas de parts, ne reçoivent pas de fonds d’une organisation qui pourrait tirer profit de cet article, et n’ont déclaré aucune autre affiliation que leur organisme de recherche.

    – ref. Ending US birthright citizenship could have consequences for LGBTQ+ couples, lower-income parents and the surrogacy market – https://theconversation.com/ending-us-birthright-citizenship-could-have-consequences-for-lgbtq-couples-lower-income-parents-and-the-surrogacy-market-250846

    MIL OSI – Global Reports –

  • MIL-OSI United Nations: World News in Brief: Guterres convenes Cyprus summit, violence continues in southern Lebanon, UN aid hub in Chad expands

    Source: United Nations 2

    Humanitarian Aid

    The UN Secretary-General on Wednesday announced a fresh bid to end the decades-long division of Cyprus through informal talks scheduled to take place over two days from 17 March.

    UN Spokesperson Stéphane Dujarric told journalists at the regular daily briefing in New York that the leaders of both the Turkish Cypriot and Greek Cypriot communities would join UN chief António Guterres along with guarantors Greece, Türkiye and the United Kingdom, at the UN in Geneva.

    The Mediterranean island was divided between north and south in 1974 after years of hostilities. The UN has led negotiations towards a settlement, with the Security Council authorising a peacekeeping force in 1964, UNFICYP.

    In the absence of a lasting agreement, the force remains on the island to supervise ceasefire lines, a buffer zone and to support humanitarian activities.

    Previous talks

    Mr. Guterres attempted to bring the two sides together in 2017 at the Swiss Alpine resort of Crans-Montana but talks ultimately broke down. A further push was made in 2021.

    The meeting later this month will take place “in the context of the Secretary-General’s good offices’ efforts on the Cyprus issue,” in in line with his commitment to continue efforts made last October. 

    “The informal meeting will provide an opportunity for a meaningful discussion on the way forward on the Cyprus issue,” Mr Dujarric said.

    “The United Nations remains committed to supporting the Cypriot leaders and all Cypriots.”

    Lebanon: Fighting continues in peacekeepers’ area of operations

    The UN Interim Force in Lebanon (UNIFIL) reported more gunfire in their area of operations on Wednesday, as well as sporadic military activity by Israeli forces, the UN Spokesperson said on Wednesday.

    As of now, the Lebanese army have deployed to more than 100 locations in southern Lebanon – between the Litani River and the ‘Blue Line’ of separation between the two countries – with the support of UN peacekeepers.

    Unexploded ordnance

    The latest conflict has left south Lebanon, especially areas close to the Blue Line, heavily littered with unexploded ordnances, “posing very serious risks to civilians”.

    The UN Interim Force in Lebanon (UNIFIL) deminers continue to assist Lebanese authorities in finding and destroying these explosive remnants. 

    “Our peacekeepers have continued to discover caches of unauthorised weapons and ammunitions, including yesterday, a number of them in our Sector West, and all of them were duly reported to the Lebanese Armed Forces,” Mr. Dujarric explained.

    Between 21 October 2024 and 26 February, 44 unexploded ordnances and six improvised explosive devices were discovered and destroyed.

    Humanitarian work continues

    At the same time, UNIFIL continues to facilitate humanitarian missions in their areas of operation, with over 60 missions having taken place since the cessation of hostilities, facilitating the return of displaced people.

    Separately, the mission reports that 31 arrests have been made in connection with the attack on 14 February on a convoy near the Beirut airport. 

    Mr. Dujarric emphasised the importance that “those responsible for that attack are brought to justice”, with the attack targeting the then Deputy Force Commander of UNIFIL and a number of his companions.

    IOM expands humanitarian hub in Chad to aid 220,000 amid Sudan crisis

    The International Organization for Migration (IOM) and the International Humanitarian Partnership (IHP) have completed the expansion of a key aid hub in Chad, in a move that will enable aid teams to reach up to 220,000 more in need.

    The expanded operational capacity at the hub in Farchana will strengthen cross-border interagency humanitarian operations for Sudan – the world’s worst displacement crisis. 

    Since April 2023, more than 11.5 million people have been displaced within Sudan and an additional 3.5 million have fled across borders, including an estimated 930,000 who have crossed from Sudan into Chad.

    Nine million in need across Darfur

    According to recent figures, nearly nine million people in the Darfur region alone require immediate assistance.

    “With the strengthened cross-border operations, IOM has already reached over 82,000 people in Darfur with critical humanitarian aid, and with the expansion of the Farchana hub, we are poised to provide life-saving assistance to an additional 220,000 people in the coming months,” explained Pascal Reyntjens, IOM Chief of Mission in Chad.

    “The hub also enables greater collaboration between humanitarian actors, development agencies and the government, which is essential for a comprehensive and sustainable response,” he continued.

    The expansion includes office space, living quarters and other infrastructure that will help improve the effectiveness of aid work in hard-to-reach field locations in Sudan.

    These enhancements will also enable international and national NGOs and UN agencies to further scale up cross-border operations from Chad into Darfur, where humanitarian needs are rapidly escalating.

    MIL OSI United Nations News –

  • MIL-OSI: Nokia Corporation: Repurchase of own shares on 05.03.2025

    Source: GlobeNewswire (MIL-OSI)

    Nokia Corporation
    Stock Exchange Release
    5 March 2025 at 22:30 EET

    Nokia Corporation: Repurchase of own shares on 05.03.2025

    Espoo, Finland – On 5 March 2025 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

    Trading venue (MIC Code) Number of shares Weighted average price / share, EUR*
    XHEL 2,314,879 4.70
    CEUX 962,572 4.70
    BATE – –
    AQEU 215,318 4.70
    TQEX 150,000 4.70
    Total 3,642,769 4.70

    * Rounded to two decimals

    On 22 November 2024, Nokia announced that its Board of Directors is initiating a share buyback program to offset the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 25 November 2024 and end by 31 December 2025 and target to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.

    Total cost of transactions executed on 5 March 2025 was EUR 17,116,279. After the disclosed transactions, Nokia Corporation holds 146,047,975 treasury shares.

    Details of transactions are included as an appendix to this announcement.

    On behalf of Nokia Corporation

    BofA Securities Europe SA

    About Nokia
    At Nokia, we create technology that helps the world act together.

    As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs which is celebrating 100 years of innovation.

    With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

    Inquiries:

    Nokia Communications
    Phone: +358 10 448 4900
    Email: press.services@nokia.com
    Maria Vaismaa, Global Head of External Communications

    Nokia Investor Relations
    Phone: +358 931 580 507
    Email: investor.relations@nokia.com

    Attachment

    The MIL Network –

  • MIL-OSI Russia: Yuri Trutnev: All-Russian competition “Far East – Land of Adventure” will be extended to the Arctic

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Yuri Trutnev took part in the award ceremony for the winners of the second season of the All-Russian travel competition “The Far East – Land of Adventure”

    March 5, 2025

    Previous news Next news

    Deputy Prime Minister and Presidential Plenipotentiary Representative in the Far Eastern Federal District Yuri Trutnev announced this at the National Center “Russia” during the award ceremony for the winners of the second season of the All-Russian travel competition “Far East – Land of Adventure”. The order to expand the competition to Arctic territories was given by Russian President Vladimir Putin.

    “I congratulate the winners and everyone who took part in the competition. Thank you for traveling, because it makes the world a better place, it makes your life better. You convey love for Russia, you convey love for our Far East. I am sure that the competition will continue. We will see many more wonderful films. The competition began with applications from two hundred people, this year the number of participants has tripled and amounted to more than six hundred people. At first glance, it seems that it is up to the person himself to decide where he will go to travel. But this is not so. With each route that travelers took through the Far East of our country, which they talked about and about which they made a film, people increasingly discover the beautiful Far Eastern territories,” Yuri Trutnev opened the ceremony.

    At the end of December, the application period for participation in the second season of the All-Russian competition for the best trip “The Far East – Land of Adventures” ended. In total, the organizing committee received 664 films, which is three times more than in 2022. Most often, participants went on a trip to the Sakhalin Region, where 142 films about active travel were shot. In addition, 112 films about adventures in the Khabarovsk Territory, 110 in the Kamchatka Territory, 70 in the Primorsky Territory, 57 in the Amur Region, 46 in the Sakha Republic (Yakutia), 42 films in the Republic of Buryatia, 26 in the Trans-Baikal Territory, 21 in the Jewish Autonomous Region, 20 and 18 films each in the Chukotka Autonomous Okrug and Magadan Region were admitted to the jury’s evaluation.

    The best video materials were selected by the jury members, including: TV journalist, author and host of the TV show “Neputevye Zametki” Dmitry Krylov, Arctic traveler, video blogger Bogdan Bulychev, TV host Valdis Pelsh, head of the project “More than a Journey” Olesya Teterina, State Duma deputy, author and host of the TV show “How the World Works” Timofey Bazhenov, producer of the VK project “Places” Nikita Afinogenov and other experienced travelers. The chairman of the jury was the editor-in-chief of the TV channel “My Planet” Nikolay Tabashnikov. In addition, the winners of the first season of the competition took part in the evaluation of the works: Elena Poddubnaya, Ernest Leonidov, Alisa Slyshchenko.

    The Grand Prix (the best trip to the Far East) was awarded to Moscow resident Ilya Bolshakov, a senior research fellow at the Geological Faculty of Moscow State University named after M.V. Lomonosov, for a trip to the Sakhalin Region. On the Kuril Island of Onekotan, the traveler visited the extinct Krenitsyn volcano, which is also called a “volcano within a volcano” and is considered one of the most beautiful in the world. “As a child, I did not dream of becoming a traveler. I did not dream of mountains or tents. I grew up as an ordinary child. It is even more amazing now to realize that I have become a geologist. And together with my friends, I spent 26 days last summer on an uninhabited island in the Pacific Ocean. During this time, we walked more than 200 km, covered 15 km by water and conquered one of the most unusual mountains on Earth,” the traveler said.

    In the nomination “Best Hiking Trip”, the first and third places were awarded to trips around the Sakhalin Region. Both travelers are residents of Moscow. The first place was taken by Anastasia Kolonskaya for her trip around the Sakhalin Region. The contestant covered 100 km in ten days, inspired by the picturesque expanses of Kunashir Island. During her trip, she saw the Tyatya volcano, the columnar rock (kekur) Monakh, or, as it is also called, the Devil’s Finger, Cape Stolbchaty and many other places. The film was shot in the format of reading hiking notes and supplemented with the author’s sketches. Third place went to Grigory Gorchakov, who traveled to the northern Kuril Islands and delighted the jury with views of untouched, wild nature. Second place was awarded to Nikita Bulanov, a resident of Buryatia, for a trip around his region. An eight-minute video about the filming of the movie “Along the Taiga, Lake and Steppe” about a journey through the picturesque places of the republic and the difficult history of one family was submitted to the competition.

    First place in the nomination “Best Water Journey” was awarded to Viktor Kitsan. He submitted an eight-minute film “Home” about family, love, strength and a journey across the Sea of Japan. Second place in the nomination was awarded to Valery Reitenberg, a resident of Khabarovsk Krai, for a journey to the Kuril Islands. Third place was awarded to a journey across Kamchatka Krai. Vyacheslav Borisovsky, a resident of Petropavlovsk-Kamchatsky, presented the film “Kamchatka. On Distant Shores”. The route of the journey on a sailing yacht ran from Petropavlovsk-Kamchatsky through Vilyuchinsky Bay, where the author took photographs of the volcano of the same name, to Cape Kekurny to photograph the life of walruses and listen to the bay.

    Two places in the nomination “Best Winter Trip” – the second and third – were taken by trips around Buryatia. The awards were received by residents of the region. Buda Tsydypov, who took second place, is engaged in organizing hiking tourism with a focus on mountaineering, helps in organizing ecological trails in the Eastern Sayan Mountains. He presented a route for climbing the highest peak of the Sayan Mountains, Munku-Sardyk. Third place was received by Elihan Batotsyrenov. He sent to the competition the film “Nukhen Daban – The Path of Discoveries” about the journey of a group of ten brave explorers through the majestic mountains. First place in the nomination was awarded to Mikhail Nepogodin, a resident of the Khabarovsk Territory, for a trip through the Badzhalsky Range – a mountain range located in the Verkhnebureinsky District.

    The winner in the category “Unlimited Possibilities” was Elena Zinovieva, who traveled around Kamchatka with her son. “My son has been blind since birth, but this does not stop us from traveling around Kamchatka. The most desired moment was when we crossed the Sea of Okhotsk by plane. The joyful emotions of the child when I tell him where we are flying are worth a lot. I am the child’s eyes and am always next to him,” says the traveler.

    12-year-old Diana Abazova won in the nomination “Best Children’s Travel”. The young resident of Khabarovsk Krai traveled to the place of power of her native region – Mount Magloy, considered sacred by the Nanai people.

    In the nomination “Best Journey with Marine Life” the winner was Muscovite Valentin Morozov for his trip to see bowhead whales in Wrangel Bay in Khabarovsk Krai.

    “A lot has been said about the unique nature of the Far Eastern regions. But I want to emphasize how incredible the people of the Far East are. In the ocean, in the mountains, in the harsh taiga, it is impossible to lie or dissemble. The feeling of elbow, support both in one’s own strength and in those who are nearby – this is what distinguishes the Far East and helps the region to develop rapidly. And of course, only such people, with a powerful character and a huge soul, can be allowed close to the mysterious inhabitants of the sea depths,” noted the Minister for the Development of the Far East and the Arctic Alexey Chekunkov.

    The winner of the special nomination “Best Trip to Chukotka” was Nikita Bereznyakov. He presented the film “On Foot in Chukotka. In the Footsteps of Ancient Eskimos”.

    “Chukotka is a special region in the Far East: a new day begins astronomically here, the sun rises. We have magnificent, unforgettable nature, one of the largest nature reserves “Beringia”, along the shores of which whales migrate. You can come and take pictures with them. When we established this nomination, we really wanted many films to be made. It is impossible to make a good film if you do not love the place you are talking about, if you do not love Chukotka. And love is very easily transmitted. And it really worked out. Many thanks to those who did it,” emphasized the Governor of the Chukotka Autonomous Okrug Vladislav Kuznetsov.

    The non-competitive prize for “Best Nature Film” was awarded to the full-length film “Fire Fox”.

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