Category: Europe

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

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter 2024 Highlights

Total revenue of $1.66 billion, up 17% year over year
Product revenue of $574 million, up 18% year over year
Billings of $2.00 billion, up 7% year over year¹
Record GAAP operating margin of 35%
Record Non-GAAP operating margin of 39%¹
Unified SASE ARR²up 28% and Security Operations ARR²up 32%, year over year
Ranked #7 on the Forbes Most Trusted Companies in America 2025 list, the only cybersecurity company in the top 50

Full Year 2024 Highlights

Total revenue of $5.96 billion, up 12% year over year
Service revenue of $4.05 billion, up 20% year over year
Record GAAP operating margin of 30%
Record Non-GAAP operating margin of 35%¹
Remaining performance obligations of $6.42 billion, up 12% year over year
Cash flow from operations of $2.26 billion
Free cash flow of $1.88 billion¹
Exceeded the ‘Rule of 45’ for the fifth consecutive year

SUNNYVALE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the fourth quarter of 2024 and full year ended December 31, 2024.

“In the fourth quarter, we successfully balanced growth and profitability as our non-GAAP operating margin increased 720 basis points year-over-year to a company record of 39%, while revenue grew 17%,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We continue to execute our strategy of investing in the high-growth Unified SASE and Security Operations markets, while strengthening our position in Secure Networking. Our customers are increasingly recognizing the benefits of a single-vendor approach to SASE, and we expect to emerge as a leader in this space, being the only company to natively develop all SASE functions within a unified operating system, FortiOS, which seamlessly integrates networking and security capabilities.”

Financial Summary for the Fourth Quarter of 2024

Revenue: Total revenue was $1.66 billion for the fourth quarter of 2024, an increase of 17.3% compared to $1.42 billion for the same quarter of 2023.
Service Revenue: Service revenue was $1.09 billion for the fourth quarter of 2024, an increase of 17.2% compared to $927.0 million for the same quarter of 2023.
Product Revenue: Product revenue was $574.0 million for the fourth quarter of 2024, an increase of 17.6% compared to $488.1 million for the same quarter of 2023.
Billings¹: Total billings were $2.00 billion for the fourth quarter of 2024, an increase of 7.4% compared to $1.86 billion for the same quarter of 2023.
Unified SASE ARR²: Unified SASE ARR was $1.12 billion for the fourth quarter of 2024, an increase of 27.9% compared to $875.3 million for the same quarter of 2023.
Security Operations ARR²: Security Operations ARR was $422.4 million for the fourth quarter of 2024, an increase of 32.2% compared to $319.6 million for the same quarter of 2023.
GAAP Operating Income and Margin: GAAP operating income was $574.1 million for the fourth quarter of 2024, representing a GAAP operating margin of 34.6%. GAAP operating income was $385.4 million for the same quarter of 2023, representing a GAAP operating margin of 27.2%.
Non-GAAP Operating Income and Margin¹: Non-GAAP operating income was $650.9 million for the fourth quarter of 2024, representing a non-GAAP operating margin of 39.2%. Non-GAAP operating income was $453.5 million for the same quarter of 2023, representing a non-GAAP operating margin of 32.0%.
GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $526.2 million for the fourth quarter of 2024, compared to GAAP net income of $310.9 million for the same quarter of 2023. GAAP diluted net income per share was $0.68 for the fourth quarter of 2024, based on 775.2 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.40 for the same quarter of 2023, based on 772.3 million diluted weighted-average shares outstanding.
Non-GAAP Net Income and Diluted Net Income Per Share¹: Non-GAAP net income was $571.5 million for the fourth quarter of 2024, compared to non-GAAP net income of $392.0 million for the same quarter of 2023. Non-GAAP diluted net income per share was $0.74 for the fourth quarter of 2024, based on 775.2 million diluted weighted-average shares outstanding, compared to $0.51 for the same quarter of 2023, based on 772.3 million diluted weighted-average shares outstanding.
Cash Flow: Cash flow from operations was $477.6 million for the fourth quarter of 2024, compared to $191.7 million for the same quarter of 2023.
Free Cash Flow¹: Free cash flow was $380.0 million for the fourth quarter of 2024, compared to $164.8 million for the same quarter of 2023.

Financial Summary for the Full Year 2024

Revenue: Total revenue was $5.96 billion for 2024, an increase of 12.3% compared to $5.30 billion in 2023.
Service Revenue: Service revenue was $4.05 billion for 2024, an increase of 19.8% compared to $3.38 billion in 2023.
Product Revenue: Product revenue was $1.91 billion for 2024, a decrease of 1.0% compared to $1.93 billion in 2023.
Billings¹: Total billings were $6.53 billion for 2024, an increase of 2.1% compared to $6.40 billion in 2023.
Remaining performance obligations: Remaining performance obligations were $6.42 billion as of December 31, 2024, an increase of 11.7% compared to $5.75 billion as of December 31, 2023.
Deferred Revenue: Total deferred revenue was $6.36 billion as of December 31, 2024, an increase of 10.9% compared to $5.74 billion as of December 31, 2023.
GAAP Operating Income and Margin: GAAP operating income was $1.80 billion for 2024, representing a GAAP operating margin of 30.3%. GAAP operating income was $1.24 billion for 2023, representing a GAAP operating margin of 23.4%.
Non-GAAP Operating Income and Margin¹: Non-GAAP operating income was $2.09 billion for 2024, representing a non-GAAP operating margin of 35.0%. Non-GAAP operating income was $1.51 billion for 2023, representing a non-GAAP operating margin of 28.4%.
GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $1.75 billion for 2024, compared to GAAP net income of $1.15 billion for 2023. GAAP diluted net income per share was $2.26 for 2024, based on 771.9 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $1.46 for 2023, based on 788.2 million diluted weighted-average shares outstanding.
Non-GAAP Net Income and Diluted Net Income Per Share¹: Non-GAAP net income was $1.83 billion for 2024, compared to non-GAAP net income of $1.29 billion for 2023. Non-GAAP diluted net income per share was $2.37 for 2024, based on 771.9 million diluted weighted-average shares outstanding, compared to $1.63 for 2023, based on 788.2 million diluted weighted-average shares outstanding.
Cash Flow: Cash flow from operations was $2.26 billion in 2024 compared to $1.94 billion in 2023.
Free Cash Flow¹: Free cash flow was $1.88 billion in 2024, compared to $1.73 billion in 2023.

Guidance

For the first quarter of 2025, Fortinet currently expects:

Revenue in the range of $1.500 billion to $1.560 billion
Billings in the range of $1.520 billion to $1.600 billion
Non-GAAP gross margin in the range of 80.0% to 81.0%
Non-GAAP operating margin in the range of 30.0% to 31.0%
Diluted non-GAAP net income per share in the range of $0.52 to $0.54, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 774 million to 780 million.

For the fiscal year 2025, Fortinet currently expects:

Revenue in the range of $6.650 billion to $6.850 billion
Service revenue in the range of $4.575 billion to $4.725 billion
Billings in the range of $7.200 billion to $7.400 billion
Non-GAAP gross margin in the range of 79.0% to 81.0%
Non-GAAP operating margin in the range of 31.0% to 33.0%
Diluted non-GAAP net income per share in the range of $2.41 to $2.47, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 773 million to 783 million.

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

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

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

Conference Call Details

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

First Quarter 2025 Conference Participation Schedule:

Morgan Stanley Technology, Media & Telecom Conference
March 4, 2025

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

About Fortinet (www.fortinet.com)

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

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

FTNT-F

Forward-Looking Statements

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

Non-GAAP Financial Measures

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

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

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

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

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

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

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

	December 31, 2024			December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,875.9		$	1,397.9
Short-term investments		1,126.4			1,021.5
Marketable equity securities		64.2			21.0
Accounts receivable—net		1,463.4			1,402.0
Inventory		315.5			484.8
Prepaid expenses and other current assets		126.1			101.1
Total current assets		5,971.5			4,428.3
PROPERTY AND EQUIPMENT—NET		1,349.5			1,044.4
DEFERRED CONTRACT COSTS		622.9			605.6
DEFERRED TAX ASSETS		1,335.6			868.8
GOODWILL AND OTHER INTANGIBLE ASSETS—NET		350.4			161.8
OTHER ASSETS		133.2			150.0
TOTAL ASSETS	$	9,763.1		$	7,258.9
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable	$	190.9		$	204.3
Accrued liabilities		337.9			423.7
Accrued payroll and compensation		255.7			242.3
Deferred revenue		3,276.2			2,848.7
Total current liabilities		4,060.7			3,719.0
DEFERRED REVENUE		3,084.7			2,886.3
LONG-TERM DEBT		994.3			992.3
OTHER LIABILITIES		129.6			124.7
Total liabilities		8,269.3			7,722.3
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY (DEFICIT):
Common stock		0.8			0.8
Additional paid-in capital		1,636.2			1,416.4
Accumulated other comprehensive loss		(26.1	)		(18.9	)
Accumulated deficit		(117.1	)		(1,861.7	)
Total stockholders’ equity (deficit)		1,493.8			(463.4	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	9,763.1		$	7,258.9

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

	Three Months Ended						Year Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
REVENUE:
Product	$	574.0		$	488.1		$	1,908.7		$	1,927.3
Service		1,086.1			927.0			4,047.1			3,377.5
Total revenue		1,660.1			1,415.1			5,955.8			5,304.8
COST OF REVENUE:
Product		178.0			197.2			652.0			763.6
Service		136.5			118.7			505.6			473.6
Total cost of revenue		314.5			315.9			1,157.6			1,237.2
GROSS PROFIT:
Product		396.0			290.9			1,256.7			1,163.7
Service		949.6			808.3			3,541.5			2,903.9
Total gross profit		1,345.6			1,099.2			4,798.2			4,067.6
OPERATING EXPENSES:
Research and development		191.1			152.5			716.8			613.8
Sales and marketing		526.5			507.4			2,044.8			2,006.0
General and administrative		55.1			55.1			237.8			211.3
Gain on intellectual property matter		(1.2	)		(1.2	)		(4.6	)		(4.6	)
Total operating expenses		771.5			713.8			2,994.8			2,826.5
OPERATING INCOME		574.1			385.4			1,803.4			1,241.1
INTEREST INCOME		42.3			30.5			155.2			119.7
INTEREST EXPENSE		(4.9	)		(5.4	)		(20.0	)		(21.0	)
GAIN ON BARGAIN PURCHASE		—			—			106.3			—
OTHER INCOME (EXPENSE)—NET		6.9			5.1			13.6			(6.1	)
INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS		618.4			415.6			2,058.5			1,333.7
PROVISION FOR INCOME TAXES		86.7			95.2			283.9			143.8
LOSS FROM EQUITY METHOD INVESTMENTS		(5.5	)		(9.5	)		(29.4	)		(42.1	)
NET INCOME	$	526.2		$	310.9		$	1,745.2		$	1,147.8
Net income per share:
Basic	$	0.69		$	0.41		$	2.28		$	1.47
Diluted	$	0.68		$	0.40		$	2.26		$	1.46
Weighted-average shares outstanding:
Basic		766.5			764.9			764.4			778.6
Diluted		775.2			772.3			771.9			788.2

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

	Year Ended
	December 31, 2024			December 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,745.2		$	1,147.8
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation		257.9			249.0
Amortization of deferred contract costs		293.7			266.3
Depreciation and amortization		122.8			113.4
Amortization of investment discounts		(48.8	)		(27.7	)
Loss from equity method investments		29.4			42.1
Gain on bargain purchase		(106.3	)		—
Other		(15.2	)		18.5
Changes in operating assets and liabilities, net of impact of business combinations:
Accounts receivable—net		(45.4	)		(146.4	)
Inventory		131.2			(253.5	)
Prepaid expenses and other current assets		(13.7	)		(27.6	)
Deferred contract costs		(311.1	)		(353.5	)
Deferred tax assets		(223.2	)		(301.9	)
Other assets		(11.0	)		17.7
Accounts payable		(10.2	)		(43.1	)
Accrued liabilities		(106.7	)		137.4
Accrued payroll and compensation		—			23.4
Other liabilities		(8.3	)		(21.7	)
Deferred revenue		577.8			1,095.3
Net cash provided by operating activities		2,258.1			1,935.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments		(1,948.6	)		(1,855.8	)
Sales of investments		0.5			4.0
Maturities of investments		1,891.7			1,414.8
Purchases of property and equipment		(378.9	)		(204.1	)
Purchase of investment in privately held company		—			(8.5	)
Payments made in connection with business combinations, net of cash acquired		(275.5	)		—
Purchases of marketable equity securities		(16.7	)		—
Other		0.1			0.3
Net cash used in investing activities		(727.4	)		(649.3	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase and retirement of common stock		(0.6	)		(1,500.5	)
Proceeds from issuance of common stock		63.1			43.8
Taxes paid related to net share settlement of equity awards		(100.9	)		(112.5	)
Other		(11.7	)		(1.2	)
Net cash used in financing activities		(50.1	)		(1,570.4	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(2.6	)		(0.8	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		1,478.0			(285.0	)
CASH AND CASH EQUIVALENTS—Beginning of year		1,397.9			1,682.9
CASH AND CASH EQUIVALENTS—End of year	$	2,875.9		$	1,397.9

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

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

	Three Months Ended						Year Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Reconciliation of non-GAAP operating income:
GAAP operating income	$	574.1		$	385.4		$	1,803.4		$	1,241.1
GAAP operating margin		34.6	%		27.2	%		30.3	%		23.4	%
Add back:
Stock‐based compensation		66.5			64.0			260.2			251.6
Amortization of acquired intangible assets		11.5			5.3			23.1			18.9
Litigation-related matter ^(a)		—			—			3.2			—
Gain on intellectual property matter		(1.2	)		(1.2	)		(4.6	)		(4.6	)
Non‐GAAP operating income	$	650.9		$	453.5		$	2,085.3		$	1,507.0
Non‐GAAP operating margin		39.2	%		32.0	%		35.0	%		28.4	%

Reconciliation of non-GAAP net income:
GAAP net income	$	526.2		$	310.9		$	1,745.2		$	1,147.8
Add back:
Stock‐based compensation		66.5			64.0			260.2			251.6
Amortization of acquired intangible assets		11.5			5.3			23.1			18.9
Litigation-related matter ^(a)		—			—			3.2			—
Gain on intellectual property matter		(1.2	)		(1.2	)		(4.6	)		(4.6	)
Gain on bargain purchase ^(b)		—			—			(106.3	)		—
Tax adjustment ^(c)		(31.5	)		13.0			(95.9	)		(128.1	)
Non-cash charge on equity method investment ^(d)		—			—			8.0			—
Non-GAAP net income	$	571.5		$	392.0		$	1,832.9		$	1,285.6

Non-GAAP net income per share, diluted
Non-GAAP net income	$	571.5		$	392.0		$	1,832.9		$	1,285.6
Non-GAAP shares used in diluted net income per share calculations		775.2			772.3			771.9			788.2
Non-GAAP net income per share, diluted	$	0.74		$	0.51		$	2.37		$	1.63

Reconciliation of non-GAAP net income per share, diluted
GAAP net income per share, diluted	$	0.68		$	0.40		$	2.26		$	1.46
Add back:
Non-GAAP adjustments to net income per share		0.06			0.11			0.11			0.17
Non-GAAP net income per share, diluted	$	0.74		$	0.51		$	2.37		$	1.63

(a) To exclude a $3.2 million adjustment for a litigation settlement in the three months ended September 30, 2024.
(b) To exclude a $106.3 million gain on bargain purchase related to our acquisition of Lacework Inc in the three months ended September 30, 2024.
(c) Non-GAAP financial information is adjusted to an effective tax rate of 17% in the three months and year ended December 31, 2024 and 2023, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(d) To exclude an $8.0 million non-cash charge of impairment on our equity method investment in Linksys.

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

	Three Months Ended						Year Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net cash provided by operating activities	$	477.6		$	191.7		$	2,258.1		$	1,935.5
Less: Purchases of property and equipment		(97.6	)		(26.9	)		(378.9	)		(204.1	)
Free cash flow	$	380.0		$	164.8		$	1,879.2		$	1,731.4
Net cash used in investing activities	$	(79.9	)	$	(71.6	)	$	(727.4	)	$	(649.3	)
Net cash used in financing activities	$	(8.8	)	$	(910.1	)	$	(50.1	)	$	(1,570.4	)

Reconciliation of total revenue to total billings

	Three Months Ended					Year Ended
	December 31, 2024			December 31, 2023		December 31, 2024			December 31, 2023
Total revenue	$	1,660.1		$	1,415.1	$	5,955.8		$	5,304.8
Add: Change in deferred revenue		349.2			449.7		625.9			1,094.7
Less: Deferred revenue balance acquired in business acquisitions		(6.8	)		—		(49.2	)		—
Total billings	$	2,002.5		$	1,864.8	$	6,532.5		$	6,399.5

Investor Contact:	Media Contact:

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

The MIL Network –

February 7, 2025

MIL-OSI: APA Corporation Declares Cash Dividend on Common Shares

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Feb. 06, 2025 (GLOBE NEWSWIRE) — The board of directors of APA Corporation (Nasdaq: APA) has declared a regular cash dividend on the company’s common shares.

The dividend on common shares is payable May 22, 2025, to stockholders of record on April 22, 2025, at a rate of 25 cents per share on the corporation’s common stock.

About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.

Contacts
Investor: (281) 302-2286 Ben Rodgers
Media: (713) 296-7276 Alexandra Franceschi
Website: www.apacorp.com

APA-F

The MIL Network –

February 7, 2025

MIL-OSI: Microchip Technology Announces Financial Results for Third Quarter of Fiscal Year 2025

Source: GlobeNewswire (MIL-OSI)

Net sales of $1.026 billion, down 11.8% sequentially and down 41.9% from the year ago quarter. Our updated guidance provided on December 2, 2024 was net sales of $1.025 billion.
On a GAAP basis: gross profit of 54.7%; operating income of $30.9 million and 3.0% of net sales; net loss of $53.6 million; and loss of $0.10 per diluted share. Our guidance provided on November 5, 2024 was for GAAP earnings (loss) per share of $(0.04) to $0.03 per diluted share.
On a Non-GAAP basis: gross profit of 55.4%; operating income of $210.7 million and 20.5% of net sales; net income of $107.3 million; and EPS of $0.20 per diluted share. Our updated guidance provided on December 2, 2024 was for Non-GAAP EPS of $0.25 per diluted share.
Returned approximately $244.6 million to stockholders in the December quarter through dividends.
Quarterly dividend declared today for the March quarter of 45.5 cents per share, an increase of 1.1% from the year ago quarter.

CHANDLER, Ariz., Feb. 06, 2025 (GLOBE NEWSWIRE) — (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today reported results for the three months ended December 31, 2024, as summarized in the table below.

	Three Months Ended December 31, 2024⁽¹⁾
Net sales	$1,026.0
	GAAP	%	Non-GAAP⁽²⁾	%
Gross profit	$561.4	54.7%	$568.8	55.4%
Operating income	$30.9	3.0%	$210.7	20.5%
Other expense	$(77.0)		$(76.7)
Income tax provision	$7.5		$26.7
Net (loss) income	$(53.6)	(5.2)%	$107.3	10.5%
Net (loss) income per diluted share	$(0.10)		$0.20

⁽¹⁾ In millions, except per share amounts and percentages of net sales.
⁽²⁾ See the “Use of Non-GAAP Financial Measures” section of this release.

Net sales for the third quarter of fiscal 2025 were $1.026 billion, down 41.9% from net sales of $1.766 billion in the prior year’s third fiscal quarter.

GAAP net loss for the third quarter of fiscal 2025 was $53.6 million, or $0.10 per diluted share, down from GAAP net income of $419.2 million, or $0.77 per diluted share, in the prior year’s third fiscal quarter. For the third quarters of fiscal 2025 and fiscal 2024, GAAP results were adversely impacted by amortization of acquired intangible assets associated with our previous acquisitions.

Non-GAAP net income for the third quarter of fiscal 2025 was $107.3 million, or $0.20 per diluted share, down from non-GAAP net income of $592.7 million, or $1.08 per diluted share, in the prior year’s third fiscal quarter. For the third quarters of fiscal 2025 and fiscal 2024, our non-GAAP results exclude the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, severance, and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to our Microsemi acquisition), professional services associated with certain legal matters, and losses on the settlement of debt. For the third quarters of fiscal 2025 and fiscal 2024, our non-GAAP income tax expense is presented based on projected cash taxes for the applicable fiscal year, excluding transition tax payments under the Tax Cuts and Jobs Act. A reconciliation of our non-GAAP and GAAP results is included in this press release.

Microchip announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 45.5 cents per share, up 1.1% from the year ago quarter. The quarterly dividend is payable on March 7, 2025 to stockholders of record on February 24, 2025.

“Our December quarter performance reflects the need for the decisive steps we are taking to realign our business, as revenue declined to $1.026 billion and inventory levels reached 266 days,” said Steve Sanghi, Microchip’s CEO and President. “Since returning as CEO in November, we have already initiated several key actions, including restructuring our manufacturing footprint, adjusting our channel strategy and intensifying our customer engagement. Our initial assessment indicates clear areas for operational enhancement, and we are taking a methodical yet urgent approach to evaluating all aspects of our business and implementing necessary changes to strengthen our competitive position.”

Eric Bjornholt, Microchip’s Chief Financial Officer, said, “We are executing on multiple operational initiatives to enhance our financial performance. Our focus remains on returning to premium profitability levels that have historically differentiated Microchip, supported by our diversified business model. While navigating the current cycle, we continue to focus on inventory management while maintaining our commitment to shareholder returns.”

Rich Simoncic, Microchip’s Chief Operating Officer, said, “Our comprehensive technology platform is driving innovation across critical markets, with our new RISC-V processors and expanded connectivity solutions demonstrating strong momentum in industrial, automotive, and aerospace applications. By delivering advanced AI capabilities, enhanced networking, and robust security technologies, we believe we are well-positioned to meet the evolving needs of our customers in increasingly complex technological environments.”

Mr. Sanghi concluded, “While we have seen substantial inventory destocking at our customers and channel partners, we believe the correction cycle is still not completed. Our March quarter bookings are running at a higher rate than December, though overall levels remain low. With net sales guidance of $920.0 million to $1.000 billion for our March quarter, we maintain a cautious but focused approach and look forward to providing a comprehensive update during our business update call on March 3, 2025.”

Fourth Quarter Fiscal Year 2025 Outlook:

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

	Microchip Consolidated Guidance
Net Sales	$920.0 million to $1.000 billion
	GAAP⁽⁵⁾	Non-GAAP Adjustments⁽¹⁾	Non-GAAP⁽¹⁾
Gross Profit	51.2% to 53.1%	$7.8 to $8.8 million	52.0% to 54.0%
Operating Expenses⁽²⁾	56.1% to 60.0%	$179.7 to $183.7 million	37.7% to 40.5%
Operating Income (loss)	(8.9)% to (2.9)%	$187.5 to $192.5 million	11.5% to 16.3%
Other Expense, net	$69.7 to $71.3 million	$(0.2) to $0.2 million	$69.5 to $71.5 million
Income Tax (Benefit) Provision	$(24.5) to $(19.8) million⁽³⁾	$29.5 to $33.4 million	$5.0 to $13.6 million⁽⁴⁾
Net Income (loss)	$(128.5) to $(79.4) million	$157.8 to $159.3 million	$29.3 to $79.9 million
Diluted Common Shares Outstanding	Approximately 538.4 million shares		Approximately 541.5 to 542.5 million shares
Earnings (loss) per Diluted Share	$(0.24) to $(0.14)	$0.29	$0.05 to $0.15

⁽¹⁾ See the “Use of Non-GAAP Financial Measures” section of this release for information regarding our non-GAAP guidance.
⁽²⁾ We are not able to estimate the amount of certain Special Charges and Other, net that may be incurred during the quarter ending March 31, 2025. Therefore, our estimate of GAAP operating expenses excludes certain amounts that may be recognized as Special Charges and Other, net in the quarter ending March 31, 2025.
⁽³⁾ The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter, as these amounts cannot be forecasted.
⁽⁴⁾ Represents the expected cash tax rate for fiscal 2025, excluding any transition tax payments associated with the Tax Cuts and Jobs Act.
⁽⁵⁾ Our GAAP guidance excludes the impact of any potential charges related to our ongoing evaluation of restructuring activities.

Capital expenditures for the quarter ending March 31, 2025 are expected to be about $23 million. Capital expenditures for all of fiscal 2025 are expected to be about $135 million. Consistent with the slowing macroeconomic environment in fiscal 2025, we have paused most of our factory expansion actions and reduced our planned capital investments through fiscal 2026. However, we are adding capital equipment to selectively expand our production capacity and add research and development equipment.

Under the GAAP revenue recognition standard, we are required to recognize revenue when control of the product changes from us to a customer or distributor. We focus our sales and marketing efforts on creating demand for our products in the end markets we serve and not on moving inventory into our distribution network. We also manage our manufacturing and supply chain operations, including our distributor relationships, towards the goal of having our products available at the time and location the end customer desires.

Use of Non-GAAP Financial Measures: Our non-GAAP adjustments, where applicable, include the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, severance, and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to our Microsemi acquisition), professional services associated with certain legal matters, and losses on the settlement of debt. For the third quarters of fiscal 2025 and fiscal 2024, our non-GAAP income tax expense is presented based on projected cash taxes for the fiscal year, excluding transition tax payments under the Tax Cuts and Jobs Act.

We are required to estimate the cost of certain forms of share-based compensation, including employee stock options, restricted stock units, and our employee stock purchase plan, and to record a commensurate expense in our income statement. Share-based compensation expense is a non-cash expense that varies in amount from period to period and is affected by the price of our stock at the date of grant. The price of our stock is affected by market forces that are difficult to predict and are not within the control of management. Our other non-GAAP adjustments are either non-cash expenses, unusual or infrequent items, or other expenses related to transactions. Management excludes all of these items from its internal operating forecasts and models.

We are using non-GAAP operating expenses in dollars, including non-GAAP research and development expenses and non-GAAP selling, general and administrative expenses, non-GAAP other expense, net, and non-GAAP income tax rate, which exclude the items noted above, as applicable, to permit additional analysis of our performance.

Management believes these non-GAAP measures are useful to investors because they enhance the understanding of our historical financial performance and comparability between periods. Many of our investors have requested that we disclose this non-GAAP information because they believe it is useful in understanding our performance as it excludes non-cash and other charges that many investors feel may obscure our underlying operating results. Management uses non-GAAP measures to manage and assess the profitability of our business and for compensation purposes. We also use our non-GAAP results when developing and monitoring our budgets and spending. Our determination of these non-GAAP measures might not be the same as similarly titled measures used by other companies, and it should not be construed as a substitute for amounts determined in accordance with GAAP. There are limitations associated with using these non-GAAP measures, including that they exclude financial information that some may consider important in evaluating our performance. Management compensates for this by presenting information on both a GAAP and non-GAAP basis for investors and providing reconciliations of the GAAP and non-GAAP results.

Generally, gross profit fluctuates over time, driven primarily by the mix of products sold and licensing revenue; variances in manufacturing yields; fixed cost absorption; wafer fab loading levels; costs of wafers from foundries; inventory reserves; pricing pressures in our non-proprietary product lines; and competitive and economic conditions. Operating expenses fluctuate over time, primarily due to net sales and profit levels.

Diluted Common Shares Outstanding can vary for, among other things, the trading price of our common stock, the exercise of options or vesting of restricted stock units, the potential for incremental dilutive shares from our convertible debentures (additional information regarding our share count is available in the investor relations section of our website under the heading “Supplemental Information”), and repurchases or issuances of shares of our common stock. The diluted common shares outstanding presented in the guidance table above assumes an average Microchip stock price in the March 2025 quarter between $55 and $65 per share (however, we make no prediction as to what our actual share price will be for such period or any other period and we cannot estimate what our stock option exercise activity will be during the quarter).


MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts; unaudited)

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Net sales	$	1,026.0		$	1,765.7		$	3,431.1		$	6,308.6
Cost of sales		464.6			645.7			1,464.3			2,102.8
Gross profit		561.4			1,120.0			1,966.8			4,205.8

Research and development		246.2			266.0			728.6			857.1
Selling, general and administrative		158.2			172.2			465.7			572.4
Amortization of acquired intangible assets		122.6			151.3			368.3			454.2
Special charges and other, net		3.5			1.1			7.6			4.6
Operating expenses		530.5			590.6			1,570.2			1,888.3

Operating income		30.9			529.4			396.6			2,317.5

Other expense, net		(77.0	)		(45.1	)		(189.4	)		(151.3	)
(Loss) income before income taxes		(46.1	)		484.3			207.2			2,166.2
Income tax provision		7.5			65.1			53.1			414.0
Net (loss) income	$	(53.6	)	$	419.2		$	154.1		$	1,752.2

Basic net (loss) income per common share	$	(0.10	)	$	0.78		$	0.29		$	3.23
Diluted net (loss) income per common share	$	(0.10	)	$	0.77		$	0.28		$	3.19

Basic common shares outstanding		537.4			540.8			536.9			543.0
Diluted common shares outstanding		537.4			546.5			542.1			549.0


MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions; unaudited)

ASSETS
	December 31,		March 31,
		2024		2024
Cash and short-term investments	$	586.0	$	319.7
Accounts receivable, net		857.2		1,143.7
Inventories		1,356.3		1,316.0
Other current assets		196.3		233.6
Total current assets		2,995.8		3,013.0

Property, plant and equipment, net		1,152.1		1,194.6
Other assets		11,484.3		11,665.6
Total assets	$	15,632.2	$	15,873.2

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued liabilities	$	1,330.3	$	1,520.0
Current portion of long-term debt		—		999.4
Total current liabilities		1,330.3		2,519.4

Long-term debt		6,749.5		5,000.4
Long-term income tax payable		598.7		649.2
Long-term deferred tax liability		22.9		28.8
Other long-term liabilities		899.3		1,017.6

Stockholders’ equity		6,031.5		6,657.8
Total liabilities and stockholders’ equity	$	15,632.2	$	15,873.2

MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in millions, except per share amounts and percentages; unaudited)

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Gross profit, as reported	$	561.4		$	1,120.0		$	1,966.8		$	4,205.8
Share-based compensation expense		7.4			6.0			18.3			20.2
Cybersecurity incident expenses		—			—			20.1			—
Non-GAAP gross profit	$	568.8		$	1,126.0		$	2,005.2		$	4,226.0
GAAP gross profit percentage		54.7	%		63.4	%		57.3	%		66.7	%
Non-GAAP gross profit percentage		55.4	%		63.8	%		58.4	%		67.0	%

RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Research and development expenses, as reported	$	246.2		$	266.0		$	728.6		$	857.1
Share-based compensation expense		(28.8	)		(24.4	)		(79.0	)		(71.0	)
Other adjustments		—			(0.1	)		—			(0.5	)
Non-GAAP research and development expenses	$	217.4		$	241.5		$	649.6		$	785.6
GAAP research and development expenses as a percentage of net sales		24.0	%		15.1	%		21.2	%		13.6	%
Non-GAAP research and development expenses as a percentage of net sales		21.2	%		13.7	%		18.9	%		12.5	%

RECONCILIATION OF GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES TO NON-GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Selling, general and administrative expenses, as reported	$	158.2		$	172.2		$	465.7		$	572.4
Share-based compensation expense		(13.2	)		(14.4	)		(42.4	)		(43.5	)
Cybersecurity incident expenses		—			—			(1.3	)		—
Other adjustments		(3.9	)		(1.0	)		(7.3	)		(0.5	)
Professional services associated with certain legal matters		(0.4	)		(0.4	)		(1.1	)		(1.2	)
Non-GAAP selling, general and administrative expenses	$	140.7		$	156.4		$	413.6		$	527.2
GAAP selling, general and administrative expenses as a percentage of net sales		15.4	%		9.8	%		13.6	%		9.1	%
Non-GAAP selling, general and administrative expenses as a percentage of net sales		13.7	%		8.9	%		12.1	%		8.4	%

RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Operating expenses, as reported	$	530.5		$	590.6		$	1,570.2		$	1,888.3
Share-based compensation expense		(42.0	)		(38.8	)		(121.4	)		(114.5	)
Cybersecurity incident expenses		—			—			(1.3	)		—
Other adjustments		(3.9	)		(1.1	)		(7.3	)		(1.0	)
Professional services associated with certain legal matters		(0.4	)		(0.4	)		(1.1	)		(1.2	)
Amortization of acquired intangible assets ⁽¹⁾		(122.6	)		(151.3	)		(368.3	)		(454.2	)
Special charges and other, net		(3.5	)		(1.1	)		(7.6	)		(4.6	)
Non-GAAP operating expenses	$	358.1		$	397.9		$	1,063.2		$	1,312.8
GAAP operating expenses as a percentage of net sales		51.7	%		33.4	%		45.8	%		29.9	%
Non-GAAP operating expenses as a percentage of net sales		34.9	%		22.5	%		31.0	%		20.8	%

⁽¹⁾ Amortization of acquired intangible assets consists of core and developed technology and customer-related acquired intangible assets in connection with business combinations. Such charges are excluded for purposes of calculating certain non-GAAP measures.

RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Operating income, as reported	$	30.9		$	529.4		$	396.6		$	2,317.5
Share-based compensation expense		49.4			44.8			139.7			134.7
Cybersecurity incident expenses		—			—			21.4			—
Other adjustments		3.9			1.1			7.3			1.0
Professional services associated with certain legal matters		0.4			0.4			1.1			1.2
Amortization of acquired intangible assets ⁽¹⁾		122.6			151.3			368.3			454.2
Special charges and other, net		3.5			1.1			7.6			4.6
Non-GAAP operating income	$	210.7		$	728.1		$	942.0		$	2,913.2
GAAP operating income as a percentage of net sales		3.0	%		30.0	%		11.6	%		36.7	%
Non-GAAP operating income as a percentage of net sales		20.5	%		41.2	%		27.5	%		46.2	%

RECONCILIATION OF GAAP OTHER EXPENSE, NET TO NON-GAAP OTHER EXPENSE, NET

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Other expense, net, as reported	$	(77.0	)	$	(45.1	)	$	(189.4	)	$	(151.3	)
Loss on settlement of debt		0.3			—			0.3			12.2
Loss on available-for-sale investments		—			—			1.8			—
Non-GAAP other expense, net	$	(76.7	)	$	(45.1	)	$	(187.3	)	$	(139.1	)
GAAP other expense, net, as a percentage of net sales	(7.5		)%	(2.6		)%	(5.5		)%	(2.4		)%
Non-GAAP other expense, net, as a percentage of net sales	(7.5		)%	(2.6		)%	(5.5		)%	(2.2		)%

RECONCILIATION OF GAAP INCOME TAX PROVISION TO NON-GAAP INCOME TAX PROVISION

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Income tax provision as reported	$	7.5		$	65.1		$	53.1		$	414.0
Income tax rate, as reported	(16.3		)%		13.4	%		25.6	%		19.1	%
Other non-GAAP tax adjustment		19.2			25.2			54.2			(27.2	)
Non-GAAP income tax provision	$	26.7		$	90.3		$	107.3		$	386.8
Non-GAAP income tax rate		19.9	%		13.2	%		14.2	%		13.9	%

RECONCILIATION OF GAAP NET (LOSS) INCOME AND GAAP DILUTED NET (LOSS) INCOME PER COMMON SHARE TO NON-GAAP NET INCOME AND NON-GAAP DILUTED NET INCOME PER COMMON SHARE

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
Net (loss) income, as reported	$	(53.6	)	$	419.2		$	154.1		$	1,752.2
Share-based compensation expense		49.4			44.8			139.7			134.7
Cybersecurity incident expenses		—			—			21.4			—
Other adjustments		3.9			1.1			7.3			1.0
Professional services associated with certain legal matters		0.4			0.4			1.1			1.2
Amortization of acquired intangible assets		122.6			151.3			368.3			454.2
Special charges and other, net		3.5			1.1			7.6			4.6
Loss on settlement of debt		0.3			—			0.3			12.2
Loss on available-for-sale investments		—			—			1.8			—
Other non-GAAP tax adjustment		(19.2	)		(25.2	)		(54.2	)		27.2
Non-GAAP net income	$	107.3		$	592.7		$	647.4		$	2,387.3
GAAP net (loss) income as a percentage of net sales	(5.2		)%		23.7	%		4.5	%		27.8	%
Non-GAAP net income as a percentage of net sales		10.5	%		33.6	%		18.9	%		37.8	%
Diluted net (loss) income per common share, as reported	$	(0.10	)	$	0.77		$	0.28		$	3.19
Non-GAAP diluted net income per common share	$	0.20		$	1.08		$	1.19		$	4.35
Diluted common shares outstanding, as reported		537.4			546.5			542.1			549.0
Diluted common shares outstanding non-GAAP		541.6			546.5			542.1			549.0

RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW

	Three Months Ended December 31,						Nine Months Ended December 31,
		2024			2023			2024			2023
GAAP cash flow from operations, as reported	$	271.5		$	853.3		$	692.2		$	2,462.7
Capital expenditures		(18.1	)		(59.5	)		(111.8	)		(245.0	)
Free cash flow	$	253.4		$	793.8		$	580.4		$	2,217.7
GAAP cash flow from operations as a percentage of net sales		26.5	%		48.3	%		20.2	%		39.0	%
Free cash flow as a percentage of net sales		24.7	%		45.0	%		16.9	%		35.2	%

Microchip will host a conference call today, February 6, 2025 at 5:00 p.m. (Eastern Time) to discuss this release. This call will be simulcast over the Internet at www.microchip.com. The webcast will be available for replay until February 27, 2025.

A telephonic replay of the conference call will be available at approximately 8:00 p.m. (Eastern Time) on February 6, 2025 and will remain available until 5:00 p.m. (Eastern Time) on February 27, 2025. Interested parties may listen to the replay by dialing 201-612-7415/877-660-6853 and entering access code 13750989.

Cautionary Statement:
The statements in this release relating to the decisive steps we are taking to realign our business, restructuring our manufacturing footprint, adjusting our channel strategy and intensifying our customer engagement, clear areas for operational enhancements, taking a methodical yet urgent approach to evaluating all aspects of our business and implementing necessary changes to strengthen our competitive position, executing on multiple operational initiatives to enhance our financial performance, that our focus remains on returning to premium profitability levels that have historically differentiated Microchip, supported by our diversified business model, that we continue to focus on inventory management while maintaining our commitment to shareholder returns, that our comprehensive technology platform is driving innovation across critical markets, with our new RISC-V processors and expanded connectivity solutions demonstrating strong momentum in industrial, automotive, and aerospace applications, that we believe we are well-positioned to meet the evolving needs of our customers in increasingly complex technological environments, that we believe the correction cycle is still not completed, our net sales guidance of $920.0 million to $1.000 billion for our March 2025 quarter, that we maintain a cautious but focused approach, our fourth quarter fiscal 2025 guidance for net sales and GAAP and non-GAAP gross profit, operating expenses, operating income (loss), other expense, net, income tax (benefit) provision, net income (loss), diluted common shares outstanding, earnings (loss) per diluted share, capital expenditures for the March 2025 quarter and for all of fiscal 2025, adding capital equipment to selectively expand our production capacity and add research and development equipment, our belief that non-GAAP measures are useful to investors and our assumed average stock price in the March 2025 quarter are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: any continued uncertainty, fluctuations or weakness in the U.S. and world economies (including China and Europe) due to changes in interest rates or high inflation, actions taken or which may be taken by the Trump administration or the new U.S. Congress, monetary policy, political, geopolitical, trade or other issues in the U.S. or internationally (including the military conflicts in Ukraine-Russia and the Middle East), further changes in demand or market acceptance of our products and the products of our customers and our ability to respond to any increases or decreases in market demand or customer

requests to reschedule or cancel orders; the mix of inventory we hold, our ability to satisfy any short-term orders from our inventory and our ability to effectively manage our inventory levels; foreign currency effects on our business; changes in utilization of our manufacturing capacity and our ability to effectively manage our production levels to meet any increases or decreases in market demand or any customer requests to reschedule or cancel orders; the impact of inflation on our business; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; our ability to realize the expected benefits of our long-term supply assurance program; changes or fluctuations in customer order patterns and seasonality; our ability to effectively manage our supply of wafers from third party wafer foundries to meet any decreases or increases in our needs and the cost of such wafers, our ability to obtain additional capacity from our suppliers to increase production to meet any future increases in market demand; our ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of our acquisitions; the impact of any future significant acquisitions or strategic transactions we may make; the costs and outcome of any current or future litigation or other matters involving our acquisitions (including the acquired business, intellectual property, customers, or other issues); the costs and outcome of any current or future tax audit or investigation regarding our business or our acquired businesses; the impact that the CHIPS Act will have on increasing manufacturing capacity in our industry by providing incentives for us, our competitors and foundries to build new wafer manufacturing facilities or expand existing facilities; the amount and timing of any incentives we may receive under the CHIPS Act, the impact of current and future changes in U.S. corporate tax laws (including the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017); fluctuations in our stock price and trading volume which could impact the number of shares we acquire under our share repurchase program and the timing of such repurchases; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to Microchip’s filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip’s website (www.microchip.com) or the SEC’s website (www.sec.gov) or from commercial document retrieval services.

Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this February 6, 2025 press release, or to reflect the occurrence of unanticipated events.

About Microchip:

Microchip Technology Incorporated is a leading provider of smart, connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while lowering total system cost and time to market. Our solutions serve approximately 112,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

Note: The Microchip name and logo are registered trademarks of Microchip Technology Incorporated in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.

INVESTOR RELATIONS CONTACT:

Sajid Daudi — Head of investor Relations….. (480) 792-7385

The MIL Network –

February 7, 2025

MIL-OSI: ESCO Reports First Quarter Fiscal 2025 Results

Source: GlobeNewswire (MIL-OSI)

St. Louis, Feb. 06, 2025 (GLOBE NEWSWIRE) — ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the first quarter ended December 31, 2024 (Q1 2025).

Operating Highlights

Q1 2025 Sales increased $28.7 million (13.2 percent) to $247.0 million compared to $218.3 million in Q1 2024.
Q1 2025 Entered Orders were $275.0 million for a book-to-bill ratio of 1.11x, resulting in record backlog of $907 million.
Q1 2025 GAAP EPS increased 54 percent to $0.91 per share compared to $0.59 per share in Q1 2024.
Q1 2025 Adjusted EPS as defined in prior guidance increased 48 percent to $0.92 per share compared to $0.62 per share in Q1 2024.
Beginning in Q1 2025 we are excluding acquisition related amortization (which was $0.15 per share in Q1 2025) from our Adjusted EPS calculation. Q1 2025 Adjusted EPS excluding acquisition related amortization increased 41 percent to $1.07 per share compared to $0.76 per share in Q1 2024.
Net cash provided by operating activities was $34 million in Q1 2025, an increase of $25 million compared to the prior year period, as cash flow was positively impacted by higher net earnings and favorable working capital impacts.

Bryan Sayler, Chief Executive Officer and President, commented, “Our fiscal year got off to an outstanding start as we delivered 13 percent top line growth, over 200 basis points of Adjusted EBITDA margin expansion, and a 41 percent increase in Adjusted EPS compared to the prior year. All three segments delivered solid revenue growth, highlighted by notable strength across our Navy, commercial aerospace and utility end-markets. It was also great to see our Test business deliver a solid quarter with improving order flow, double digit revenue growth, and over 500 basis points of margin expansion.

“The ESCO team continues to build upon our strong position in attractive markets to increase value across the enterprise. Overall, it was a great way to start the year, with continuing momentum across our end markets giving us the confidence to raise our full year earnings guidance.”

Segment Performance

Aerospace & Defense (A&D)

Sales increased $19.6 million (21 percent) to $114.3 million in Q1 2025 from $94.7 million in Q1 2024. The Q1 increase was driven by strength in Navy and commercial aerospace, partially offset by lower defense aerospace.
Q1 2025 EBIT and Adjusted EBIT both increased $4.9 million to $21.6 million (18.9 percent margin) from $16.7 million (17.6 percent margin) in Q1 2024. Margin improvement was driven by leverage on higher volume and price increases, partially offset by inflationary pressures and mix.
Entered Orders decreased $51 million (30 percent) to $121 million in Q1 2025 compared to $172 million in Q1 2024. The decrease in orders was primarily driven by large Navy orders for Virginia Class Block V surface hull tiles and Block VI long lead material procurement for the Light-Weight Wide Aperture Array (LWWAA) in Q1 2024, partially offset by higher Q1 2025 Navy ejection valve and spares orders. Orders in the quarter resulted in a segment book-to-bill of 1.06x and record ending backlog of $607 million.

Utility Solutions Group (USG)

Sales increased $3.7 million (4 percent) to $86.7 million in Q1 2025 from $83.0 million in Q1 2024. Doble’s sales increased by $7.9 million (12 percent) driven by a strong quarter for offline and protection testing products and services. NRG sales decreased $4.2 million (22 percent) due to moderation in renewable energy projects in the quarter.
EBIT increased $2.9 million in Q1 2025 to $20.5 million from $17.6 million in Q1 2024. Adjusted EBIT increased $2.8 million to $20.5 million (23.6 percent margin) from $17.7 million (21.4 percent margin) in Q1 2024. Margin was favorably impacted by leverage on higher volume, price increases, and mix, partially offset by inflationary pressures.
Entered Orders increased $13 million (16 percent) to $90 million in Q1 2025. Doble orders increased by $10 million (15 percent) on strength across their product portfolio and highlighted by a $4.3 million order for offline test equipment at Phenix. NRG orders increased by $3 million in the quarter. The segment book-to-bill was 1.03x in the quarter and resulted in an ending backlog of $123 million.

RF Test & Measurement (Test)

Sales increased $5.5 million (13 percent) to $46.1 million in Q1 2025 from $40.6 million in Q1 2024. Sales growth primarily related to higher U.S. shielding, Test and Measurement in EMEA, and MPE filter sales.
EBIT increased $2.6 million in Q1 2025 to $4.4 million from $1.8 million in Q1 2024. Adjusted EBIT increased $2.8 million in Q1 2025 to $4.9 million (10.6 percent margin) from $2.1 million (5.1 percent margin) in Q1 2024. Margin was favorably impacted by leverage on higher volume, price increases, and cost reduction efforts, partially offset by inflationary pressures and mix.
Entered Orders increased $20 million (43 percent) to $65 million in Q1 2025. The increase was driven by a strong quarter for EMC Test & Measurement, A&D, and medical and industrial shielding orders. The segment book-to-bill was 1.41x in the quarter and resulted in ending backlog of $177 million.

Business Outlook – 2025
Beginning in Q1 2025, acquisition related amortization will be excluded from our Adjusted Earnings calculation. Our current assessment of FY 2025 acquisition related amortization does not include the impact of the pending SM&P acquisition. The initial fiscal 2025 guidance issued in our November press release is revised as follows:

	Guidance Range
November FY 2025 Adjusted EPS Guidance	$	4.70	$	4.90
Acquisition Related Amortization	$	0.60	$	0.60
Revised November FY 2025 Adjusted EPS Guidance	$	5.30	$	5.50

Due to strong market conditions and continued improvement in operational performance, we are raising our full-year guidance by $0.25 to a range of $5.55 to $5.75 (16 to 21 percent growth over the prior year) from $5.30 to $5.50. This guidance is in line with our initial revenue guidance range of $1.09 to $1.11 billion (6 to 8 percent annual growth).

	Guidance Range
Revised November FY 2025 Adjusted EPS Guidance	$	5.30	$	5.50
Guidance Increase	$	0.25	$	0.25
Revised FY 2025 Adjusted EPS Guidance	$	5.55	$	5.75

Management’s current expectation is for Q2 Adjusted EPS in the range of $1.20 to $1.30, which represents 10 to 19 percent growth over the prior year quarter.

	Guidance Range
Q2 2025 Adjusted EPS Guidance (prior methodology)	$	1.05	$	1.15
Acquisition Related Amortization	$	0.15	$	0.15
Q2 2025 Adjusted EPS Guidance	$	1.20	$	1.30

SM&P Acquisition
As announced on July 8, 2024, ESCO has agreed to acquire the Signature Management & Power (SM&P) business of Ultra Maritime for a purchase price of $550 million. The closing of the transaction is subject to certain conditions, including the completion of the regulatory approval processes in the United States (US) and the United Kingdom (UK). The US closing conditions have been met. We are in the final stages of the UK government assessment of the transaction and we are optimistic that the assessment will be positively resolved in the near term. Our current expectation would be to close the transaction either in our second or early in our third fiscal quarter. SM&P’s sole source product offerings will add significant scale to the ESCO Navy business, providing increased content on domestic Navy submarine and surface ship programs and expansion into vital UK and AUKUS navy platforms.

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

Conference Call
The Company will host a conference call today, February 6, at 4:00 p.m. Central Time, to discuss the Company’s Q1 2025 results. A live audio webcast and an accompanying slide presentation will be available in the Investor Center of ESCO’s website. Participants may also access the webcast using this registration link. For those unable to participate, a webcast replay will be available after the call in the Investor Center of ESCO’s website.

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

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

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

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

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

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

					Three Months Ended December 31, 2024				Three Months Ended December 31, 2023

Net Sales				$	247,026				218,314
Cost and Expenses:
		Cost of sales			148,642				134,151
		Selling, general and administrative expenses			58,784				53,968
		Amortization of intangible assets			7,993				7,868
		Interest expense			2,257				2,667
		Other (income) expenses, net			(591	)			206
			Total costs and expenses		217,085				198,860

Earnings before income taxes					29,941				19,454
Income tax expense					6,468				4,285

			Net earnings	$	23,473				15,169

			Earnings Per Share (EPS)

			Diluted – GAAP	$	0.91				0.59

			Diluted – As Adjusted Basis	$	1.07		(1	)	0.76	(2	)

			Diluted average common shares O/S:		25,834				25,846

(1	)	Q1 2025 Adjusted EPS excludes $0.16 per share of after-tax charges consisting primarily of $0.01 of restructuring charges within the Test segment and acquisition related costs at Corporate and $0.15 of acquisition related amortization.

(2	)	Q1 2024 Adjusted EPS excludes $0.17 per share of after-tax charges consisting primarily of $0.03 of MPE acquisition inventory step-up and backlog charges and acquisition related costs and $0.14 of acquisition related amortization.

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

				GAAP				As Adjusted
				Q1 2025		Q1 2024		Q1 2025		Q1 2024
Net Sales
	Aerospace & Defense		$	114,301		94,733		114,301		94,733
	USG			86,660		82,984		86,660		82,984
	Test			46,065		40,597		46,065		40,597
		Totals	$	247,026		218,314		247,026		218,314

EBIT
	Aerospace & Defense		$	21,596		16,663		21,622		16,663
	USG			20,489		17,625		20,489		17,745
	Test			4,422		1,779		4,887		2,052
	Corporate			(14,309	)	(13,946	)	(9,310	)	(8,600	)
		Consolidated EBIT		32,198		22,121		37,688		27,860
		Less: Interest expense		(2,257	)	(2,667	)	(2,257	)	(2,667	)
		Less: Income tax expense		(6,468	)	(4,285	)	(7,730	)	(5,605	)
		Net earnings	$	23,473		15,169		27,701		19,588

Note 1: Adjusted net earnings of $27.7 million in Q1 2025 exclude $4.2 million (or $0.16 per share) of after-tax charges consisting primarily of restructuring charges within the Test segment and acquisition related costs at Corporate, and acquisition related amortization.

Note 2: Adjusted net earnings of $19.6 million in Q1 2024 exclude $4.4 million (or $0.17 per share) of after-tax charges consisting primarily of MPE acquisition inventory step-up and backlog charges and acquisition related costs, and acquisition related amortization.

EBITDA Reconciliation to Net earnings:								Adjusted		Adjusted
				Q1 2025		Q1 2024		Q1 2025		Q1 2024
Consolidated EBITDA			$	46,005		35,573		46,498		36,408
Less: Depr & Amort				(13,807	)	(13,452	)	(8,810	)	(8,548	)
Consolidated EBIT				32,198		22,121		37,688		27,860
Less: Interest expense				(2,257	)	(2,667	)	(2,257	)	(2,667	)
Less: Income tax expense				(6,468	)	(4,285	)	(7,730	)	(5,605	)
Net earnings			$	23,473		15,169		27,701		19,588

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

				December 31, 2024	September 30, 2024

Assets
	Cash and cash equivalents		$	71,284	65,963
	Accounts receivable, net			202,661	240,680
	Contract assets			131,404	130,534
	Inventories			219,383	209,164
	Other current assets			20,779	22,308
		Total current assets		645,511	668,649
	Property, plant and equipment, net			168,468	170,596
	Intangible assets, net			396,302	407,602
	Goodwill			532,312	539,899
	Operating lease assets			38,710	37,744
	Other assets			13,761	14,130
			$	1,795,064	1,838,620

Liabilities and Shareholders’ Equity
	Current maturities of long-term debt		$	20,000	20,000
	Accounts payable			75,881	98,371
	Contract liabilities			129,737	124,845
	Other current liabilities			90,491	106,638
		Total current liabilities		316,109	349,854
	Deferred tax liabilities			75,520	75,333
	Non-current operating lease liabilities			36,400	34,810
	Other liabilities			38,102	39,273
	Long-term debt			92,000	102,000
	Shareholders’ equity			1,236,933	1,237,350
			$	1,795,064	1,838,620

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

		Three Months Ended December 31, 2024		Three Months Ended December 31, 2023
Cash flows from operating activities:
Net earnings	$	23,473		15,169
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization		13,807		13,452
Stock compensation expense		2,524		2,180
Changes in assets and liabilities		(7,151	)	(22,539	)
Effect of deferred taxes		1,521		484
Net cash provided by operating activities		34,174		8,746

Cash flows from investing activities:
Acquisition of business, net of cash acquired		–		(56,179	)
Capital expenditures		(5,208	)	(7,848	)
Additions to capitalized software		(2,587	)	(2,942	)
Net cash used by investing activities		(7,795	)	(66,969	)

Cash flows from financing activities:
Proceeds from long-term debt		42,000		99,000
Principal payments on long-term debt and short-term borrowings		(52,000	)	(29,000	)
Dividends paid		(2,064	)	(2,064	)
Purchases of common stock into treasury		–		–
Other		(6,031	)	(1,432	)
Net cash (used) provided by financing activities		(18,095	)	66,504

Effect of exchange rate changes on cash and cash equivalents		(2,963	)	1,249

Net increase in cash and cash equivalents		5,321		9,530
Cash and cash equivalents, beginning of period		65,963		41,866
Cash and cash equivalents, end of period	$	71,284		51,396

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

Backlog And Entered Orders – Q1 2025			A&D		USG		Test		Total
	Beginning Backlog – 10/1/24	$	600,382		119,943		158,644		878,969
	Entered Orders		120,606		89,574		64,825		275,005
	Sales		(114,301	)	(86,660	)	(46,065	)	(247,026	)
	Ending Backlog – 12/31/24	$	606,687		122,857		177,404		906,948

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

EPS – Adjusted Basis Reconciliation – Q1 2025
	EPS – GAAP Basis – Q1 2025	$	0.91
	Adjustments (defined below)		0.16
	EPS – As Adjusted Basis – Q1 2025	$	1.07

	Adjustments exclude $0.16 per share consisting primarily of $0.01 of restructuring
	charges within the Test segment and acquisition related costs at Corporate and
	$0.15 of acquisition related amortization.
	The $0.16 of EPS adjustments per share consists of $5,490K of pre-tax charges
	offset by $1,262K of tax benefit for net impact of $4,228K.

EPS – Adjusted Basis Reconciliation – Q1 2024
	EPS – GAAP Basis – Q1 2024	$	0.59
	Adjustments (defined below)		0.17
	EPS – As Adjusted Basis – Q1 2024	$	0.76

	Adjustments exclude $0.17 per share consisting primarily of $0.03 of MPE
	acquisition inventory step-up and backlog charges and acquisition related costs and
	$0.14 of acquisition related amortization.
	The $0.17 of EPS adjustments per share consists of $5,739K of pre-tax charges
	offset by $1,320K of tax benefit for net impact of $4,419K.

EPS – Adjusted Basis Reconciliation – Q2 2025 Guidance			Low	High
	EPS – GAAP Basis – Q2 2025	$	1.05	1.15
	Adjustments (defined below)		0.15	0.15
	EPS – As Adjusted Basis – Q2 2025	$	1.20	1.30

	Adjustments exclude an estimated $0.15 of acquisition related amortization.
	The estimated $0.15 of EPS adjustment per share consists of $5.0 million of pre-tax charges
	offset by $1.15 million of tax benefit for net impact of $3.85 million.

EPS – Adjusted Basis Reconciliation – FY 2025 Guidance			Low	High
	EPS – GAAP Basis – FY 2025	$	4.94	5.14
	Adjustments (defined below)		0.61	0.61
	EPS – As Adjusted Basis – FY 2025	$	5.55	5.75

	Adjustments exclude $0.61 per share consisting primarily of $0.01 of restructuring charges within
	the Test segment and acquisition related costs at Corporate and an estimated $0.60 of acquisition
	related amortization. The estimated $0.61 of EPS adjustments per share consists of $20.5
	million of pre-tax charges offset by $4.7 million of tax benefits for net impact of $15.8 million.

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

The MIL Network –

February 7, 2025

MIL-OSI: NMI Holdings, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results; Announces Additional $250 Million Share Repurchase Authorization

Source: GlobeNewswire (MIL-OSI)

EMERYVILLE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $86.2 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024, which compares to $92.8 million, or $1.15 per diluted share, for the third quarter ended September 30, 2024 and $83.4 million, or $1.01 per diluted share, for the fourth quarter ended December 31, 2023. Adjusted net income for the quarter was $86.1 million, or $1.07 per diluted share, which compares to $92.8 million, or $1.15 per diluted share, for the third quarter ended September 30, 2024 and $83.4 million, or $1.01 per diluted share, for the fourth quarter ended December 31, 2023.

Net income for the full year ended December 31, 2024 was $360.1 million, or $4.43 per diluted share, which compares to $322.1 million, or $3.84 per diluted share, for the year ended December 31, 2023. Adjusted net income for the year was $365.6 million, or $4.50 per diluted share, which compares to $322.1 million, or $3.84 per diluted share, for the year ended December 31, 2023. The non-GAAP financial measures adjusted net income and adjusted diluted earnings per share are presented in this release to enhance the comparability of financial results between periods. See “Use of Non-GAAP Financial Measures” and our reconciliation of such measures to their most comparable GAAP measures, below.

The company also announced today that its Board of Directors has authorized an additional $250 million share repurchase plan effective through December 31, 2027.

Adam Pollitzer, President and Chief Executive Officer of National MI, said, “The fourth quarter capped another year of standout success for National MI. In 2024, we delivered strong operating performance, generated significant NIW volume and consistent growth in our insured portfolio, and achieved record financial results and a 17.4% return on equity. We have a strong customer franchise, a talented team driving us forward every day, an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, and a robust balance sheet supported by the significant earnings power of our platform. Looking forward, we’re well-positioned to continue delivering differentiated growth, returns and value for our shareholders, and today’s incremental $250 million share repurchase authorization will provide investors with further ability to access value as we continue to perform, grow our earnings and compound book value.”

Selected fourth quarter 2024 highlights include:

Primary insurance-in-force at quarter end was $210.2 billion, compared to $207.5 billion at the end of the third quarter and $197.0 billion at the end of the fourth quarter of 2023.
Net premiums earned were $143.5 million, compared to $143.3 million in the third quarter and $132.9 million in the fourth quarter of 2023.
Total revenue was $166.5 million, compared to $166.1 million in the third quarter and $151.4 million in the fourth quarter of 2023.
Insurance claims and claim expenses were $17.3 million, compared to $10.3 million in the third quarter and $8.2 million in the fourth quarter of 2023. Loss ratio was 12.0%, compared to 7.2% in the third quarter and 6.2% in the fourth quarter of 2023.
Underwriting and operating expenses were $31.1 million, compared to $29.2 million in the third quarter and $29.7 million in the fourth quarter of 2023. Expense ratio was 21.7%, compared to 20.3% in the third quarter and 22.4% in the fourth quarter of 2023.
Net income was $86.2 million, compared to $92.8 million in the third quarter and $83.4 million in the fourth quarter of 2023. Diluted EPS was $1.07, compared to $1.15 in the third quarter and $1.01 in the fourth quarter of 2023.
Shareholders’ equity was $2.2 billion at quarter end and book value per share was $28.21. Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $29.80, up 4% compared to $28.71 in the third quarter and 17% compared to $25.54 in the fourth quarter of 2023.
Annualized return on equity for the quarter was 15.6%, compared to 17.5% in the third quarter and 18.0% in the fourth quarter of 2023.
At quarter-end, total PMIERs available assets were $3.1 billion and net risk-based required assets were $1.8 billion.

	Quarter Ended			Quarter Ended			Quarter Ended			*Change*⁽¹⁾		*Change*⁽¹⁾
	*12/31/2024*			*9/30/2024*			*12/31/2023*			*Q/Q*		*Y/Y*
INSURANCE METRICS ($billions)
Primary Insurance-in-Force	$	210.2		$	207.5		$	197.0		1	%	7	%
New Insurance Written – NIW		11.9			12.2			8.9		(2	)%	34	%

FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts)
Net Premiums Earned	$	143.5		$	143.3		$	132.9		0	%	8	%
Net Investment Income		22.7			22.5			18.2		1	%	25	%
Insurance Claims and Claim Expenses		17.3			10.3			8.2		67	%	110	%
Underwriting and Operating Expenses		31.1			29.2			29.7		7	%	5	%
Net Income		86.2			92.8			83.4		(7	)%	3	%
Diluted EPS	$	1.07		$	1.15		$	1.01		(7	)%	6	%
Book Value per Share (excluding net unrealized gains and losses) ⁽²⁾	$	29.80		$	28.71		$	25.54		4	%	17	%
Loss Ratio		12.0	%		7.2	%		6.2	%
Expense Ratio		21.7	%		20.3	%		22.4	%

(1) Percentages may not be replicated based on the rounded figures presented in the table.
(2) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Conference Call and Webcast Details

The company will hold a conference call, which will be webcast live today, February 6, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company’s website, www.nationalmi.com, in the “Investor Relations” section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S., or (412) 317-0664 internationally, by referencing NMI Holdings, Inc.

About NMI Holdings, Inc.

NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower’s default. To learn more, please visit www.nationalmi.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believe,” “can,” “could,” “may,” “predict,” “assume,” “potential,” “should,” “will,” “estimate,” “perceive,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policies, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency (“FHFA”), such as the FHFA’s priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements (“PMIERs”) and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia (“D.C.”) and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration, the U.S. Department of Agriculture’s Rural Housing Service and the U.S. Department of Veterans Affairs, and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning “Qualified Mortgage” and “Qualified Residential Mortgage”; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs’ role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading “Risk Factors” detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2023, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.

Use of Non-GAAP Financial Measures

We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors. These non-GAAP financial measures align with the way the company’s business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present.

Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred.

Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods.

Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP.

Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders’ equity for the period.

Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned.

Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned.

Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding.

Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below.

(1) Net realized investment gains and losses. The recognition of the net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results.
(2) Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles.
(3) Other infrequent, unusual or non-operating items. Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. Identification and exclusion of these items provides clarity about the impact special or rare occurrences may have on our current financial performance. Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017. We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business.
(4) Net unrealized gains and losses on investments. The recognition of the net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and not reflective of ongoing operations.

Investor Contact
Gregory Epps
Manager, Investor Relations and Treasury
Investor.relations@nationalmi.com

Consolidated statements of operations and comprehensive income (unaudited)	For the three months ended December 31,						For the year ended December 31,
		2024			2023			2024			2023
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	143,520		$	132,940		$	564,688		$	510,768
Net investment income		22,718			18,247			85,316			67,512
Net realized investment gains (losses)		33			—			23			(33	)
Other revenues		233			193			944			756
Total revenues		166,504			151,380			650,971			579,003
Expenses
Insurance claims and claim expenses		17,253			8,232			31,544			22,618
Underwriting and operating expenses		31,092			29,716			118,397			110,699
Service expenses		184			185			723			771
Interest expense		7,102			8,066			36,896			32,212
Total expenses		55,631			46,199			187,560			166,300

Income before income taxes		110,873			105,181			463,411			412,703
Income tax expense		24,706			21,768			103,305			90,593
Net income	$	86,167		$	83,413		$	360,106		$	322,110

Earnings per share
Basic	$	1.09		$	1.03		$	4.51		$	3.91
Diluted	$	1.07		$	1.01		$	4.43		$	3.84

Weighted average common shares outstanding
Basic		78,997			81,005			79,844			82,407
Diluted		80,623			82,685			81,273			83,854

Loss ratio ⁽¹⁾		12.0	%		6.2	%		5.6	%		4.4	%
Expense ratio ⁽²⁾		21.7	%		22.4	%		21.0	%		21.7	%
Combined ratio ⁽³⁾		33.7	%		28.5	%		26.6	%		26.1	%

Net income	$	86,167		$	83,413		$	360,106		$	322,110
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains in accumulated other comprehensive loss, net of tax (benefit) expense of $(11,374) and $19,580 for the three months ended December 31, 2024 and 2023, and $3,921 and $17,113 for the years ended December 31, 2024 and 2023, respectively		(42,787	)		73,660			15,113			64,380
Reclassification adjustment for realized (gains) losses included in net income, net of tax expense (benefit) of $7 and $0 for the three months ended December 31, 2024 and 2023, and $0 and $(7) for the years ended December 31, 2024, and 2023, respectively		(26	)		—			—			26
Other comprehensive (loss) income, net of tax		(42,813	)		73,660			15,113			64,406
Comprehensive income	$	43,354		$	157,073		$	375,219		$	386,516

(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned.
(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.
(3) Combined ratio may not foot due to rounding.

Consolidated balance sheets (unaudited)	December 31, 2024			December 31, 2023
Assets	(In Thousands, except for share data)
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,876,343 and $2,542,862 as of December 31, 2024 and December 31, 2023, respectively)	$	2,723,541		$	2,371,021
Cash and cash equivalents (including restricted cash of $90 and $1,338 as of December 31, 2024 and December 31, 2023, respectively)		54,308			96,689
Premiums receivable, net		82,804			76,456
Accrued investment income		22,386			19,785
Deferred policy acquisition costs, net		64,327			62,905
Software and equipment, net		25,681			30,252
Intangible assets and goodwill		3,634			3,634
Reinsurance recoverable		32,260			27,514
Prepaid federal income taxes		322,175			235,286
Other assets		18,857			16,965
Total assets	$	3,349,973		$	2,940,507

Liabilities
Debt	$	415,146		$	397,595
Unearned premiums		65,217			92,295
Accounts payable and accrued expenses		103,164			86,189
Reserve for insurance claims and claim expenses		152,071			123,974
Deferred tax liability, net		386,192			301,573
Other liabilities		10,751			12,877
Total liabilities		1,132,541			1,014,503

Shareholders’ equity
Common stock – $0.01 par value; 87,902,626 shares issued and 78,600,726 shares outstanding as of December 31, 2024 and 87,334,138 shares issued and 80,881,280 shares outstanding as of December 31, 2023 (250,000,000 shares authorized)		879			873
Additional paid-in capital		1,004,692			990,816
Treasury stock, at cost: 9,301,900 and 6,452,858 common shares as of December 31, 2024 and December 31, 2023, respectively		(246,594	)		(148,921	)
Accumulated other comprehensive loss, net of tax		(124,804	)		(139,917	)
Retained earnings		1,583,259			1,223,153
Total shareholders’ equity		2,217,432			1,926,004
Total liabilities and shareholders’ equity	$	3,349,973		$	2,940,507

Non-GAAP Financial Measure Reconciliations (unaudited)
	As of and for the three months ended									For the year ended December 31,
	12/31/2024			9/30/2024			12/31/2023				2024			2023
As Reported	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	143,520		$	143,343		$	132,940		$	564,688		$	510,768
Net investment income		22,718			22,474			18,247			85,316			67,512
Net realized investment gains (losses)		33			(10	)		—			23			(33	)
Other revenues		233			285			193			944			756
Total revenues		166,504			166,092			151,380			650,971			579,003
Expenses
Insurance claims and claim expenses		17,253			10,321			8,232			31,544			22,618
Underwriting and operating expenses		31,092			29,160			29,716			118,397			110,699
Service expenses		184			208			185			723			771
Interest expense		7,102			7,076			8,066			36,896			32,212
Total expenses		55,631			46,765			46,199			187,560			166,300

Income before income taxes		110,873			119,327			105,181			463,411			412,703
Income tax expense		24,706			26,517			21,768			103,305			90,593
Net income	$	86,167		$	92,810		$	83,413		$	360,106		$	322,110

Adjustments:
Net realized investment (gains) losses		(33	)		10			—			(23	)		33
Capital markets transaction costs		—			—			—			6,966			—
Adjusted income before taxes		110,840			119,337			105,181			470,354			412,736

Income tax (benefit) expense on adjustments ⁽¹⁾		(7	)		2			—			1,458			7
Adjusted net income	$	86,141		$	92,818		$	83,413		$	365,591		$	322,136

Weighted average diluted shares outstanding		80,623			81,045			82,685			81,273			83,854

Diluted EPS	$	1.07		$	1.15		$	1.01		$	4.43		$	3.84
Adjusted diluted EPS	$	1.07		$	1.15		$	1.01		$	4.50		$	3.84

Return on equity		15.6	%		17.5	%		18.0	%		17.4	%		18.2	%
Adjusted return on equity		15.6	%		17.5	%		18.0	%		17.6	%		18.2	%

Expense ratio ⁽²⁾		21.7	%		20.3	%		22.4	%		21.0	%		21.7	%
Adjusted expense ratio ⁽³⁾		21.7	%		20.3	%		22.4	%		21.0	%		21.7	%

Combined ratio ⁽⁴⁾		33.7	%		27.5	%		28.5	%		26.6	%		26.1	%
Adjusted combined ratio ⁽⁵⁾		33.7	%		27.5	%		28.5	%		26.6	%		26.1	%

Book value per share ⁽⁶⁾	$	28.21		$	27.67		$	23.81
Book value per share (excluding net unrealized gains and losses) ⁽⁷⁾	$	29.80		$	28.71		$	25.54

(1) Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S. federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction.
(2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.
(3) Adjusted expense ratio is calculated by dividing adjusted underwriting and operating expense (underwriting and operating expenses excluding costs related to capital markets reinsurance transactions) by net premiums earned.
(4) Combined ratio is calculated by dividing the total of underwriting and operating expenses and insurance claims and claim expenses by net premiums earned.
(5) Adjusted combined ratio is calculated by dividing the total of adjusted underwriting and operating expenses (underwriting and operating expenses excluding costs related to capital market reinsurance transaction) and insurance claims and claim expenses by net premiums earned.
(6) Book value per share is calculated by dividing total shareholders’ equity by shares outstanding.
(7) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Historical Quarterly Data	2024												2023
	December 31			September 30			June 30			March 31			December 31
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	143,520		$	143,343		$	141,168		$	136,657		$	132,940
Net investment income		22,718			22,474			20,688			19,436			18,247
Net realized investment gains (losses)		33			(10	)		—			—			—
Other revenues		233			285			266			160			193
Total revenues		166,504			166,092			162,122			156,253			151,380
Expenses
Insurance claims and claim expenses		17,253			10,321			276			3,694			8,232
Underwriting and operating expenses		31,092			29,160			28,330			29,815			29,716
Service expenses		184			208			194			137			185
Interest expense		7,102			7,076			14,678			8,040			8,066
Total expenses		55,631			46,765			43,478			41,686			46,199

Income before income taxes		110,873			119,327			118,644			114,567			105,181
Income tax expense		24,706			26,517			26,565			25,517			21,768
Net income	$	86,167		$	92,810		$	92,079		$	89,050		$	83,413

Earnings per share
Basic	$	1.09		$	1.17		$	1.15		$	1.10		$	1.03
Diluted	$	1.07		$	1.15		$	1.13		$	1.08		$	1.01

Weighted average common shares outstanding
Basic		78,997			79,549			80,117			80,726			81,005
Diluted		80,623			81,045			81,300			82,099			82,685

Other data
Loss ratio ⁽¹⁾		12.0	%		7.2	%		0.2	%		2.7	%		6.2	%
Expense ratio ⁽²⁾		21.7	%		20.3	%		20.1	%		21.8	%		22.4	%
Combined ratio ⁽³⁾		33.7	%		27.5	%		20.3	%		24.5	%		28.5	%

Portfolio Statistics

The table below highlights trends in our primary portfolio as of the date and for the periods indicated.

Primary portfolio trends	As of and for the three months ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	($ Values In Millions, except as noted below)
New insurance written (NIW)	$	11,925		$	12,218		$	12,503		$	9,398		$	8,927
New risk written		3,134			3,245			3,335			2,486			2,354
Insurance-in-force (IIF) ⁽¹⁾		210,183			207,538			203,501			199,373			197,029
Risk-in-force (RIF) ⁽¹⁾		56,113			55,253			53,956			52,610			51,796
Policies in force (count) ⁽¹⁾		659,567			654,374			645,276			635,662			629,690
Average loan size ($ value in thousands) ⁽¹⁾	$	319		$	317		$	315		$	314		$	313
Coverage percentage ⁽²⁾		26.7	%		26.6	%		26.5	%		26.4	%		26.3	%
Loans in default (count) ⁽¹⁾		6,642			5,712			4,904			5,109			5,099
Default rate ⁽¹⁾		1.01	%		0.87	%		0.76	%		0.80	%		0.81	%
Risk-in-force on defaulted loans ⁽¹⁾	$	545		$	468		$	401		$	414		$	408
Average net premium yield ⁽³⁾		0.27	%		0.28	%		0.28	%		0.28	%		0.27	%
Earnings from cancellations	$	0.8		$	0.8		$	1.0		$	0.6		$	1.0
Annual persistency ⁽⁴⁾		84.6	%		85.5	%		85.4	%		85.8	%		86.1	%
Quarterly run-off ⁽⁵⁾		4.5	%		4.0	%		4.2	%		3.6	%		3.4	%

(1) Reported as of the end of the period.
(2) Calculated as end of period RIF divided by end of period IIF.
(3) Calculated as net premiums earned, divided by average primary IIF for the period, annualized.
(4) Defined as the percentage of IIF that remains on our books after a given twelve-month period.
(5) Defined as the percentage of IIF that is no longer on our books after a given three-month period.

NIW, IIF and Premiums

The tables below present primary NIW and primary IIF, as of the dates and for the periods indicated.

Primary NIW	For the three months ended
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
	(In Millions)
Monthly	$	11,688	$	11,978	$	12,288	$	9,175	$	8,614
Single		237		240		215		223		313
Total	$	11,925	$	12,218	$	12,503	$	9,398	$	8,927

Primary IIF	As of
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
	(In Millions)
Monthly	$	192,228	$	189,241	$	184,862	$	180,343	$	177,764
Single		17,955		18,297		18,639		19,030		19,265
Total	$	210,183	$	207,538	$	203,501	$	199,373	$	197,029

The following table presents the amounts related to the company’s quota-share reinsurance transactions (the 2016 QSR Transaction, 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction, 2023 QSR Transaction, and 2024 QSR Transaction and collectively, the QSR Transactions), insurance-linked note transactions (the 2021-1 ILN Transaction, and 2021-2 ILN Transaction and collectively, the ILN Transactions), and traditional reinsurance transactions (the 2022-1 XOL Transaction, 2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL Transaction, 2023-2 XOL Transaction, and 2024 XOL Transaction and collectively, the XOL Transactions) for the periods indicated.

	For the three months ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(In Thousands)
The QSR Transactions
Ceded risk-in-force	$	13,024,200		$	12,968,039		$	12,815,434		$	12,669,207		$	12,626,541
Ceded premiums earned		(41,596	)		(41,761	)		(41,555	)		(41,269	)		(41,218	)
Ceded claims and claim expenses (benefits)		4,075			2,449			(138	)		659			2,447
Ceding commission earned		9,997			10,152			10,222			10,292			9,561
Profit commission		20,149			21,883			24,351			23,407			22,057

The ILN Transactions ⁽¹⁾
Ceded premiums	$	(4,217	)	$	(4,302	)	$	(5,858	)	$	(5,976	)	$	(6,305	)

The XOL Transactions
Ceded premiums	$	(9,969	)	$	(9,760	)	$	(9,403	)	$	(9,223	)	$	(8,302	)

(1) Effective July 25, 2024 and December 27, 2024, NMIC exercised its optional termination rights to terminate and commute its previously outstanding excess-of-loss reinsurance agreements with Oaktown Re III Ltd. and Oaktown Re V Ltd., respectively. In connection with the terminations and commutations, the insurance-linked notes issued by Oaktown Re III Ltd. and Oaktown Re V Ltd. were redeemed in full with a distribution of remaining collateral assets.

The tables below present our total primary NIW by FICO, loan-to-value (LTV) ratio, and purchase/refinance mix for the periods indicated.

Primary NIW by FICO	For the three months ended						For the year ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
	(In Millions)
>= 760	$	6,508	$	6,615	$	4,564	$	24,808	$	22,995
740-759		2,090		2,057		1,542		8,098		6,769
720-739		1,621		1,529		1,280		5,907		5,484
700-719		890		1,040		816		3,794		2,816
680-699		575		652		568		2,392		1,946
<=679		241		325		157		1,045		463
Total	$	11,925	$	12,218	$	8,927	$	46,044	$	40,473
Weighted average FICO		758		757		755		757		760

Primary NIW by LTV	For the three months ended									For the year ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
	(In Millions)
95.01% and above	$	1,510		$	1,568		$	990		$	5,908		$	3,713
90.01% to 95.00%		5,370			5,720			4,107			21,149			18,929
85.01% to 90.00%		3,740			3,584			2,947			13,994			13,597
85.00% and below		1,305			1,346			883			4,993			4,234
Total	$	11,925		$	12,218		$	8,927		$	46,044		$	40,473
Weighted average LTV		92.1	%		92.3	%		92.2	%		92.3	%		92.1	%

Primary NIW by purchase/refinance mix	For the three months ended						For the year ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
	(In Millions)
Purchase	$	10,799	$	11,708	$	8,759	$	43,921	$	39,629
Refinance		1,126		510		168		2,123		844
Total	$	11,925	$	12,218	$	8,927	$	46,044	$	40,473

The table below presents a summary of our primary IIF and RIF by book year as of December 31, 2024.

Primary IIF and RIF	As of December 31, 2024
	IIF		RIF
Book Year	(In Millions)
2024	$	43,560	$	11,552
2023		34,284		9,047
2022		47,598		12,703
2021		50,699		13,634
2020		21,145		5,795
2019 and before		12,897		3,382
Total	$	210,183	$	56,113

The tables below present our total primary IIF and RIF by FICO and LTV, and total primary RIF by loan type as of the dates indicated.

Primary IIF by FICO	As of
	December 31, 2024		September 30, 2024		December 31, 2023
	(In Millions)
>= 760	$	105,315	$	103,764	$	98,034
740-759		37,321		36,830		34,829
720-739		29,343		28,930		27,755
700-719		19,766		19,654		18,734
680-699		13,374		13,326		12,867
<=679		5,064		5,034		4,810
Total	$	210,183	$	207,538	$	197,029

Primary RIF by FICO	As of
	December 31, 2024		September 30, 2024		December 31, 2023
	(In Millions)
>= 760	$	27,883	$	27,396	$	25,523
740-759		10,006		9,850		9,207
720-739		7,926		7,788		7,387
700-719		5,383		5,337		5,021
680-699		3,615		3,590		3,433
<=679		1,300		1,292		1,225
Total	$	56,113	$	55,253	$	51,796

Primary IIF by LTV	As of
	December 31, 2024		September 30, 2024		December 31, 2023
	(In Millions)
95.01% and above	$	23,555	$	22,644	$	19,609
90.01% to 95.00%		103,472		101,872		95,415
85.01% to 90.00%		64,290		63,568		60,348
85.00% and below		18,866		19,454		21,657
Total	$	210,183	$	207,538	$	197,029

Primary RIF by LTV	As of
	December 31, 2024		September 30, 2024		December 31, 2023
	(In Millions)
95.01% and above	$	7,345	$	7,054	$	6,062
90.01% to 95.00%		30,563		30,100		28,184
85.01% to 90.00%		15,956		15,777		14,961
85.00% and below		2,249		2,322		2,589
Total	$	56,113	$	55,253	$	51,796

Primary RIF by Loan Type	As of
	December 31, 2024		September 30, 2024		December 31, 2023

Fixed	98	%	98	%	98	%
Adjustable rate mortgages:
Less than five years	—		—		—
Five years and longer	2		2		2
Total	100	%	100	%	100	%

The table below presents a summary of the change in total primary IIF during the periods indicated.

Primary IIF	As of and for the three months ended
	December 31, 2024			September 30, 2024			December 31, 2023
	(In Millions)
IIF, beginning of period	$	207,538		$	203,501		$	194,781
NIW		11,925			12,218			8,927
Cancellations, principal repayments and other reductions		(9,280	)		(8,181	)		(6,679	)
IIF, end of period	$	210,183		$	207,538		$	197,029

Geographic Dispersion

The following table shows the distribution by state of our primary RIF as of the periods indicated:

Top 10 primary RIF by state	As of
	December 31, 2024		September 30, 2024		December 31, 2023
California	10.1	%	10.1	%	10.2	%
Texas	8.6		8.7		8.7
Florida	7.3		7.4		7.6
Georgia	4.1		4.1		4.1
Washington	3.9		3.9		4.0
Illinois	3.8		3.9		4.0
Virginia	3.7		3.8		3.9
Pennsylvania	3.4		3.4		3.4
Ohio	3.3		3.2		3.0
North Carolina	3.2		3.1		3.0
Total	51.4	%	51.6	%	51.9	%

The table below presents selected primary portfolio statistics, by book year, as of December 31, 2024.

	As of December 31, 2024
Book year	Original Insurance Written		Remaining Insurance in Force		% Remaining of Original Insurance		Policies Ever in Force	Number of Policies in Force	Number of Loans in Default	# of Claims Paid	Incurred Loss Ratio (Inception to Date)⁽¹⁾		Cumulative Default Rate⁽²⁾		Current Default Rate⁽³⁾
	($ Values in Millions)
2015 and prior	$	16,035	$	885	6	%	67,989	4,903	99	208	2.7	%	0.5	%	2.0	%
2016		21,187		1,498	7	%	83,626	8,076	158	187	1.7	%	0.4	%	2.0	%
2017		21,582		1,867	9	%	85,897	10,577	267	184	1.9	%	0.5	%	2.5	%
2018		27,295		2,433	9	%	104,043	13,152	420	184	2.5	%	0.6	%	3.2	%
2019		45,141		6,214	14	%	148,423	27,442	511	97	2.0	%	0.4	%	1.9	%
2020		62,702		21,145	34	%	186,174	73,926	598	51	1.4	%	0.3	%	0.8	%
2021		85,574		50,699	59	%	257,972	167,892	1,679	74	3.5	%	0.7	%	1.0	%
2022		58,734		47,598	81	%	163,281	138,915	2,002	68	17.9	%	1.3	%	1.4	%
2023		40,473		34,284	85	%	111,994	98,711	725	10	14.4	%	0.7	%	0.7	%
2024		46,044		43,560	95	%	120,747	115,973	183	—	6.2	%	0.2	%	0.2	%
Total	$	424,767	$	210,183			1,330,146	659,567	6,642	1,063

(1) Calculated as total claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance.
(2) Calculated as the sum of the number of claims paid ever to date and number of loans in default divided by policies ever in force.
(3) Calculated as the number of loans in default divided by number of policies in force.

The following table provides a reconciliation of the beginning and ending reserve balances for primary insurance claims and claim expenses:

	For the three months ended December 31,						For the year ended December 31,
		2024			2023			2024			2023
	(In Thousands)
Beginning balance	$	135,520		$	116,078		$	123,974		$	99,836
Less reinsurance recoverables ⁽¹⁾		(29,214	)		(25,956	)		(27,514	)		(21,587	)
Beginning balance, net of reinsurance recoverables		106,306			90,122			96,460			78,249

Add claims incurred:
Claims and claim expenses incurred:
Current year ⁽²⁾		21,674			17,298			93,206			78,285
Prior years ⁽³⁾		(4,421	)		(9,789	)		(61,662	)		(56,390	)
Total claims and claim expenses incurred ⁽⁴⁾		17,253			7,509			31,544			21,895

Less claims paid:
Claims and claim expenses paid:
Current year ⁽²⁾		458			481			638			600
Prior years ⁽³⁾		3,290			1,181			7,555			3,575
Reinsurance terminations		—			(491	)		—			(491	)
Total claims and claim expenses paid		3,748			1,171			8,193			3,684

Reserve at end of period, net of reinsurance recoverables		119,811			96,460			119,811			96,460
Add reinsurance recoverables ⁽¹⁾		32,260			27,514			32,260			27,514
Ending balance	$	152,071		$	123,974		$	152,071		$	123,974

(1) Related to ceded losses recoverable under the QSR Transactions
(2) Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year. Amounts are presented net of reinsurance and included $83.5 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the year ended December 31, 2024, $70.6 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the year ended December 31, 2023.
(3) Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year. Amounts are presented net of reinsurance and included $54.1 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the year ended December 31, 2024, $50.9 million attributed to net case reserves and $4.5 million attributed to net IBNR reserves for the year ended December 31, 2023.
(4) Excludes a $0.7 million termination fee for the year ended December 31, 2023 incurred in connection with the amendment of the 2020 QSR Transaction.

The following table provides a reconciliation of the beginning and ending count of loans in default:

	For the three months ended December 31,				For the year ended December 31,
	2024		2023		2024		2023
Beginning default inventory	5,712		4,594		5,099		4,449
Plus: new defaults	2,742		2,039		8,757		6,758
Less: cures	(1,684	)	(1,458	)	(6,899	)	(5,892	)
Less: claims paid	(108	)	(70	)	(276	)	(199	)
Less: rescission and claims denied	(20	)	(6	)	(39	)	(17	)
Ending default inventory	6,642		5,099		6,642		5,099

The following table provides details of our claims paid, before giving effect to claims ceded under the QSR Transactions, for the periods indicated:

	For the three months ended December 31,						For the year ended December 31,
		2024			2023			2024			2023
	($ Values In Thousands)
Number of claims paid ⁽¹⁾		108			70			276			199
Total amount paid for claims	$	4,777		$	2,060		$	10,491		$	5,192
Average amount paid per claim	$	44		$	29		$	38		$	26
Severity ⁽²⁾		65	%		64	%		61	%		55	%

(1) Count includes 32 and 88 claims settled without payment during the three months and year ended December 31, 2024, respectively, and 23 and 70 claims settled without payment during the three months and year ended December 31, 2023, respectively.
(2) Severity represents the total amount of claims paid including claim expenses divided by the related RIF on the loan at the time the claim is perfected, and is calculated including claims settled without payment.

The following table shows our average reserve per default, before giving effect to reserves ceded under the QSR Transactions, as of the dates indicated:

Average reserve per default:	As of
	December 31, 2024		December 31, 2023
	(In Thousands)
Case ⁽¹⁾	$	21.0	$	22.4
IBNR ^{(1) (2)}		1.9		1.9
Total	$	22.9	$	24.3

(1) Defined as the gross reserve per insured loan in default.
(2) Amount includes claims adjustment expenses.

The following table provides a comparison of the PMIERs available assets and net risk-based required asset amount as reported by NMIC as of the dates indicated:

	As of
	December 31, 2024		September 30, 2024		December 31, 2023
	(In Thousands)
Available assets	$	3,108,211	$	3,006,892	$	2,717,804
Net risk-based required assets		1,828,807		1,735,790		1,516,140

The MIL Network –

February 7, 2025

MIL-OSI: Monolithic Power Systems Earnings Commentary for the Quarter and Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

KIRKLAND, Wash., Feb. 06, 2025 (GLOBE NEWSWIRE) — MPS will report its results after the market closes on February 6, 2025 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/96816578886.

2024 Financial Summary	(Unaudited)
GAAP

		2024			2023		YoY Change	YoY Change (%)
Revenue ($k)	$	2,207,100		$	1,821,072		Up $ 386,028	Up 21.2%
Gross Margin		55.3	%		56.1	%	Down 0.8 pts	Down 1.4%
Opex ($k)	$	681,512		$	539,383		Up $ 142,129	Up 26.4%
Operating Margin		24.4	%		26.5	%	Down 2.1 pts	Down 7.9%
Net income ($k)	$	1,786,700		$	427,374		Up $ 1,359,326	Up 318.1%
Diluted EPS	$	36.59		$	8.76		Up $ 27.83	Up 317.7%

		2024			2023		YoY Change	YoY Change (%)
Revenue ($k)	$	2,207,100		$	1,821,072		Up $ 386,028	Up 21.2%
Gross Margin		55.8	%		56.4	%	Down 0.6 pts	Down 1.1%
Opex ($k)	$	466,379		$	385,395		Up $ 80,984	Up 21.0%
Operating Margin		34.6	%		35.2	%	Down 0.6 pts	Down 1.7%
Net income ($k)	$	689,755		$	574,647		Up $ 115,108	Up 20.0%
Diluted EPS	$	14.12		$	11.78		Up $ 2.34	Up 19.9%

Revenue by End Market

	Revenue					YoY Change					% of Total Rev
End Market ($M)		2024			2023		$		%		2024		2023
Enterprise Data	$	716.2	$	323.0		$	393.2		121.7	%	32.5	%	17.7	%
Storage & Computing		501.6		491.1			10.5		2.1	%	22.7		27.0
Automotive		414.0		394.7			19.3		4.9	%	18.8		21.7
Communications		225.9		204.9			21.0		10.2	%	10.2		11.3
Consumer		202.0		234.7			(32.7	)	(13.9	%)	9.1		12.9
Industrial		147.4		172.7			(25.3	)	(14.6	%)	6.7		9.4
Total	$	2,207.1	$	1,821.1		$	386.0		21.2	%	100	%	100	%

Q4 2024 Financial Summary	(Unaudited)
GAAP

		Q4’24			Q3’24			Q4’23		QoQ Change	YoY Change
Revenue ($k)	$	621,665		$	620,119		$	454,012		Up 0.2%	Up 36.9%
Gross Margin		55.4	%		55.4	%		55.3	%	Flat	Up 0.1 pts
Opex ($k)	$	181,101		$	179,415		$	141,554		Up 0.9%	Up 27.9%
Operating Margin		26.3	%		26.5	%		24.1	%	Down 0.2 pts	Up 2.2 pts
Net income ($k)	$	1,449,363		$	144,430		$	96,905		Up 903.5%	Up 1395.7%
Diluted EPS	$	29.88		$	2.95		$	1.98		Up 912.9%	Up 1409.1%

	Q4’24				Q3’24			Q4’23		QoQ Change	YoY Change
Revenue ($k)	$	621,665		$	620,119		$	454,012		Up 0.2%	Up 36.9%
Gross Margin		55.8	%		55.8	%		55.7	%	Flat	Up 0.1 pts
Opex ($k)	$	126,117		$	125,169		$	96,745		Up 0.8%	Up 30.4%
Operating Margin		35.5	%		35.6	%		34.4	%	Down 0.1 pts	Up 1.1 pts
Net income ($k)	$	198,401		$	198,786		$	140,852		Down 0.2%	Up 40.9%
Diluted EPS	$	4.09		$	4.06		$	2.88		Up 0.7%	Up 42.0%

Revenue by End Market

	Revenue					YoY Change				% of Total Rev
End Market ($M)		Q4’24			Q4’23	$			%	Q4’24		Q4’23
Enterprise Data	$	194.9	$	128.9		$	66.0	51.2	%	31.3	%	28.4	%
Storage & Computing		136.5		117.3			19.2	16.4	%	22.0		25.8
Automotive		128.4		89.8			38.6	43.0	%	20.6		19.8
Communications		63.8		40.9			22.9	55.9	%	10.3		9.0
Consumer		57.3		43.7			13.6	31.0	%	9.2		9.6
Industrial		40.8		33.4			7.4	22.3	%	6.6		7.4
Total	$	621.7	$	454.0		$	167.7	36.9	%	100	%	100	%

Ongoing Business Conditions

In 2024, MPS’s revenue grew 21.2% year-over-year and achieved record revenue of $2.2 billion. This is our 13th consecutive year of revenue growth driven by consistent execution, continued innovation, and strong customer focus.

Highlights from 2024 include:

We introduced a Silicon Carbide inverter for high power clean energy applications. Initial revenue is expected to ramp in late 2025. Other Silicon Carbide-based applications are expected to be introduced in multiple geographies during 2025 and 2026.
We developed a family of high quality, cost efficient automotive audio products utilizing DSP technology from our 2024 Axign acquisition powered by MPS solutions.
For enterprise notebooks, we launched a battery management solution and are sampling our new mini-phase power stage. These products enable faster charge time and significantly improve notebook battery life.
Building on our first analog to digital converter design win in 2024, we are developing new high accuracy 24-bit converters which are expected to ramp in the second half of 2025.
We executed a $640M stock repurchase program offsetting dilution for our shareholders.

In Q4 2024, MPS achieved record quarterly revenue of $621.7 million, slightly higher than revenue in the third quarter of 2024 and 36.9% higher than revenue in the fourth quarter of 2023. Our performance during the quarter reflected the continued strength of our diversified market strategy and a continued trend of the improved ordering patterns we saw in Q3 2024.

MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur.

“Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

2024 Full Year Revenue Results

Our full year 2024 revenue by market segment was as follows:

Full year 2024 Enterprise Data revenue grew $393.2 million to $716.2 million. This 121.7% increase was due to higher sales of our power management solutions for AI and server applications. Enterprise Data revenue represented 32.5% of MPS’s total revenue in 2024 compared with 17.7% in 2023.

Communications revenue grew by $21.0 million in 2024 to $225.9 million. This 10.2% increase was a result of higher sales of power solutions for optical modules and routers, partially offset by lower sales of networking solutions. Communications revenue represented 10.2% of our 2024 revenue compared with 11.3% in 2023.

Automotive revenue grew $19.3 million year-over-year to $414.0 million in 2024. This 4.9% gain was driven by increased sales of our highly integrated applications supporting advanced driver assistance systems. Automotive revenue represented 18.8% of MPS’s full year 2024 revenue compared with 21.7% in 2023.

Storage and Computing revenue for 2024 grew $10.5 million over the prior year to $501.6 million. This 2.1% increase was primarily driven by increased sales of products for notebooks. Storage and Computing revenue represented 22.7% of MPS’s total revenue in 2024 compared with 27.0% in 2023.

Consumer revenue decreased $32.7 million to $202.0 million in 2024. This 13.9% year-over-year decrease was a result of broad market weakness. Consumer revenue represented 9.1% of MPS’s full year 2024 revenue compared with 12.9% in 2023.

Industrial revenue fell by $25.3 million to $147.4 million in 2024. This 14.6% decrease was due to general market weakness across all industrial segments. Industrial revenue represented 6.7% of MPS’s full year 2024 revenue compared with 9.4% in 2023.

Q4’24 Revenue Results

MPS reported fourth quarter revenue of $621.7 million, slightly higher than the third quarter of 2024 and 36.9% higher than the fourth quarter of 2023. Compared with the third quarter of 2024, sales in Automotive and Enterprise Data improved sequentially.

Fourth quarter Automotive revenue of $128.4 million increased 15.3% from the third quarter of 2024 primarily from higher sales in ADAS and infotainment power solutions. Fourth quarter 2024 Automotive revenue was up 43.0% year over year. Automotive revenue represented 20.6% of MPS’s fourth quarter 2024 revenue compared with 19.8% in the fourth quarter of 2023.

In our Enterprise Data market, fourth quarter 2024 revenue of $194.9 million increased 5.6% from the third quarter of 2024. Fourth quarter 2024 Enterprise Data revenue was up 51.2% year over year. Enterprise Data revenue represented 31.3% of MPS’s fourth quarter 2024 revenue compared with 28.4% in the fourth quarter of 2023.

Fourth quarter 2024 Storage and Computing revenue of $136.5 million decreased 5.2% from the third quarter of 2024. The sequential decrease was primarily driven by lower sales in notebooks, partially offset by stronger sales in graphic cards. Fourth quarter 2024 Storage and Computing revenue was up 16.4% year over year. Storage and Computing revenue represented 22.0% of MPS’s fourth quarter 2024 revenue compared with 25.8% in the fourth quarter of 2023.

Fourth quarter 2024 Industrial revenue of $40.8 million decreased 7.3% from the third quarter of 2024 due to lower sales for security and power sources. Fourth quarter 2024 Industrial revenue was up 22.3% year over year. Industrial revenue represented 6.6% of our total fourth quarter 2024 revenue compared with 7.4% in the fourth quarter of 2023.

Fourth quarter Consumer revenue of $57.3 million decreased 11.0% from the third quarter of 2024 primarily from lower sales in smart TVs, home appliance and gaming solutions. Fourth quarter 2024 Consumer revenue was up 31.0% year over year. Consumer revenue represented 9.2% of MPS’s fourth quarter 2024 revenue compared with 9.6% in the fourth quarter of 2023.

Fourth quarter 2024 Communications revenue of $63.8 million was down 11.2% from the third quarter of 2024 reflecting lower sales in networking solutions, partially offset by higher sales in optical solutions. Fourth quarter 2024 Communications revenue was up 55.9% year over year. Communications sales represented 10.3% of our total fourth quarter 2024 revenue compared with 9.0% in the fourth quarter of 2023.

Q4’24 Gross Margin & Operating Income

GAAP gross margin was 55.4%, flat to the third quarter of 2024. Our GAAP operating income was approximately $163.3 million compared to $164.0 million reported in the third quarter of 2024.

Non-GAAP gross margin for the fourth quarter of 2024 was 55.8%, flat to the third quarter of 2024. Our non-GAAP operating income was $220.7 million compared to $220.8 million reported in the third quarter of 2024.

Q4’24 Operating Expenses

Our GAAP operating expenses were $181.1 million in the fourth quarter of 2024 compared with $179.4 million in the third quarter of 2024.

Our Non-GAAP operating expenses were approximately $126.1 million, up from $125.2 million in the third quarter of 2024.

The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expense and deferred compensation plan expense.

Total stock-based compensation and related expenses, including approximately $1.7 million charged to cost of goods sold, was $56.3 million compared with $52.4 million recorded in the third quarter of 2024.

The Bottom Line

Fourth quarter 2024 GAAP net income was $1.4 billion or $29.88 per fully diluted share, compared with $144.4 million or $2.95 per share in the third quarter of 2024. Fourth quarter GAAP net income and EPS included the recognition of a tax benefit granted to a foreign subsidiary.

Fourth quarter 2024 non-GAAP net income was $198.4 million or $4.09 per fully diluted share, compared with $198.8 million or $4.06 per fully diluted share in the third quarter of 2024.

There were 48.5 million fully diluted shares outstanding at the end of the fourth quarter of 2024. MPS repurchased $622M in stock during the fourth quarter of 2024.

Balance Sheet and Cash Flow

Cash, cash equivalents and short-term investments were $862.9 million at the end of the fourth quarter of 2024 compared to $1.46 billion at the end of the third quarter of 2024. The change was driven primarily by the share repurchases made in the fourth quarter. For the fourth quarter of 2024, MPS generated operating cash flow of approximately $167.7 million compared with the third quarter of 2024 operating cash flow of $231.7 million.

Accounts receivable at the end of the fourth quarter of 2024 at $172.5 million, representing 25 days of sales outstanding, which was 1 day higher than the 24 days reported at the end of the third quarter of 2024.

Our internal inventories at the end of the fourth quarter of 2024 were $419.6 million, down from $424.9 million at the end of the third quarter of 2024. Days of inventory of 138 days at the end of the fourth quarter of 2024 was 2 days lower than at the end of the third quarter of 2024.

We have carefully managed our internal inventories throughout the year, balancing the uncertainty in the market with being prepared to capture market upturns when they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the fourth quarter of 138 days was 2 days lower than at the end of the third quarter of 2024.

Selected Balance Sheet and Inventory Data				(Unaudited)

	Q4’24	Q3’24	Q4’23
Cash, Cash Equivalents, and Short-Term Investments	$ 862.9 M	$ 1,462.4 M	$ 1,108.5 M
Operating Cash Flow	$ 167.7 M	$ 231.7 M	$ 153.3 M
Accounts Receivable	$ 172.5 M	$ 164.7 M	$ 179.9 M
Days of Sales Outstanding	25 Days	24 Days	36 Days
Internal Inventories	$ 419.6 M	$ 424.9 M	$ 383.7 M
Days of Inventory (current quarter revenue)	138 Days	140 Days	172 Days
Days of Inventory (next quarter revenue)	138 Days	140 Days	170 Days

Q1’25 Business Outlook

For the first quarter of 2025 ending March 31, we are forecasting:

Revenue in the range of $610 million to $630 million.
GAAP gross margin in the range of 55.1% to 55.7%.
Non-GAAP gross margin in the range of 55.4% to 56.0%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
Total stock-based compensation and related expenses in the range of $55.0 million to $57.0 million including approximately $1.7 million that would be charged to cost of goods sold.
GAAP operating expenses between $180.2 million and $186.2 million.
Non-GAAP operating expenses in the range of $126.9 million to $130.9 million. This estimate excludes stock-based compensation and related expenses in the range of $53.3 million to $55.3 million.
Interest and other income in the range from $5.8 million to $6.2 million before foreign exchange gains or losses.
Non-GAAP tax rate of 15% for 2025.
Fully diluted shares outstanding in the range of 47.8 to 48.2 million shares.

Our quarterly dividend will increase 25% to $1.56 per share from $1.25 per share for stockholders of record as of March 31, 2025.

In addition, our board of directors has authorized a new $500 million stock repurchase program effective over the next 3 years. The $640 million share repurchase program authorized in October of 2023 has been fully executed.

For further information, contact:

Bernie Blegen
Executive Vice President and Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
MPSInvestor.Relations@monolithicpower.com

Safe Harbor Statement

This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Q1’25 Business Outlook” section herein, our statement regarding our business focus, our statement regarding the expansion and diversification of our global supply chain and the quote from our CEO and founder, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the first quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 29, 2024. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.

Non-GAAP Financial Measures

This CFO Commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income, net, operating income and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense, amortization of acquisition-related intangible assets and related tax effects. Non-GAAP net income and non-GAAP net income per share also exclude the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.

RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

(Unaudited, in thousands, except per share amounts)

	Three Months Ended December 31,					Year Ended December 31,
	2024			2023		2024			2023
Net income	$	1,449,363		$	96,905	$	1,786,700		$	427,374

Adjustments to reconcile net income to non-GAAP net income:
Stock-based compensation and related expenses*		56,320			41,107		213,209			149,711
Amortization of acquisition-related intangible assets		320			33		1,303			132
Deferred compensation plan expense, net		573			288		867			1,055
Tax effect of non-GAAP adjustments		(22,773	)		2,519		(26,922	)		(3,625	)
Recognition of a tax benefit granted to a foreign subsidiary		(1,285,402	)		–		(1,285,402	)		–
Non-GAAP net income	$	198,401		$	140,852	$	689,755		$	574,647

Non-GAAP net income per share:
Basic	$	4.11		$	2.94	$	14.19		$	12.07
Diluted	$	4.09		$	2.88	$	14.12		$	11.78

Shares used in the calculation of non-GAAP net income per share:
Basic		48,317			47,936		48,599			47,610
Diluted		48,506			48,881		48,835			48,771

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Gross profit	$	344,408		$	251,123		$	1,220,870		$	1,021,119
Gross margin		55.4	%		55.3	%		55.3	%		56.1	%

Adjustments to reconcile gross profit to non-GAAP gross profit:
Stock-based compensation and related expenses*		1,745			1,228			6,975			4,545
Amortization of acquisition-related intangible assets		287			–			1,171			–
Deferred compensation plan expense		417			486			1,500			871
Non-GAAP gross profit	$	346,857		$	252,837		$	1,230,516		$	1,026,535
Non-GAAP gross margin		55.8	%		55.7	%		55.8	%		56.4	%

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

(Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Total operating expenses	$	181,101		$	141,554		$	681,512		$	539,383

Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:
Stock-based compensation and related expenses*		(54,575	)		(39,879	)		(206,234	)		(145,166	)
Amortization of acquisition-related intangible assets		(33	)		(33	)		(132	)		(132	)
Deferred compensation plan expense		(376	)		(4,897	)		(8,767	)		(8,690	)
Non-GAAP operating expenses	$	126,117		$	96,745		$	466,379		$	385,395

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

(Unaudited, in thousands)

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Total operating income	$	163,307	$	109,569	$	539,358	$	481,736

Adjustments to reconcile total operating income to non-GAAP total operating income:
Stock-based compensation and related expenses*		56,320		41,107		213,209		149,711
Amortization of acquisition-related intangible assets		320		33		1,303		132
Deferred compensation plan expense		793		5,383		10,267		9,561
Non-GAAP operating income	$	220,740	$	156,092	$	764,137	$	641,140

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET

(Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Total other income, net	$	6,224		$	9,976		$	33,554		$	24,105

Adjustments to reconcile other income, net to non-GAAP other income, net:
Deferred compensation plan income		(220	)		(5,095	)		(9,400	)		(8,506	)
Non-GAAP other income, net	$	6,004		$	4,881		$	24,154		$	15,599

RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

(Unaudited, in thousands)

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Total income before income taxes	$	169,531	$	119,545	$	572,912	$	505,841

Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:
Stock-based compensation and related expenses*		56,320		41,107		213,209		149,711
Amortization of acquisition-related intangible assets		320		33		1,303		132
Deferred compensation plan expense, net		573		288		867		1,055
Non-GAAP income before income taxes	$	226,744	$	160,973	$	788,291	$	656,739

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.

2025 FIRST QUARTER OUTLOOK

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited)

	Three Months Ending March 31, 2025
	Three Months Ending March 31, 2025
	Low			High
Gross margin		55.1	%		55.7	%
Adjustment to reconcile gross margin to non-GAAP gross margin:
Stock-based compensation and other expenses		0.3	%		0.3	%
Non-GAAP gross margin		55.4	%		56.0	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

(Unaudited, in thousands)

	Three Months Ending March 31, 2025
	Three Months Ending March 31, 2025
	Low			High
Operating expenses	$	180,200		$	186,200
Adjustments to reconcile operating expenses to non-GAAP operating expenses:
Stock-based compensation and other expenses		(53,300	)		(55,300	)
Non-GAAP operating expenses	$	126,900		$	130,900

The MIL Network –

February 7, 2025

MIL-OSI: Monolithic Power Systems Announces Results for the Fourth Quarter and Year Ended December 31, 2024 and an Increase in Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

KIRKLAND, Wash., Feb. 06, 2025 (GLOBE NEWSWIRE) — Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter and year ended December 31, 2024. MPS also announced that its Board of Directors has approved an increase in the quarterly cash dividend from $1.25 per share to $1.56 per share. The first quarter dividend of $1.56 per share will be paid on April 15, 2025 to all stockholders of record as of the close of business on March 31, 2025.

The financial results for the quarter ended December 31, 2024 were as follows:

Revenue was $621.7 million for the quarter ended December 31, 2024, a 0.2% increase from $620.1 million for the quarter ended September 30, 2024 and a 36.9% increase from $454.0 million for the quarter ended December 31, 2023.

GAAP gross margin was 55.4% for the quarter ended December 31, 2024, compared with 55.3% for the quarter ended December 31, 2023.

Non-GAAP gross margin (1) was 55.8% for the quarter ended December 31, 2024, excluding the impact of $1.7 million for stock-based compensation and related expenses, $0.4 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets, compared with 55.7% for the quarter ended December 31, 2023, excluding the impact of $1.2 million for stock-based compensation expense and $0.5 million for deferred compensation plan expense.

GAAP operating expenses were $181.1 million for the quarter ended December 31, 2024, compared with $141.6 million for the quarter ended December 31, 2023.

Non-GAAP operating expenses (1) were $126.1 million for the quarter ended December 31, 2024, excluding $54.6 million for stock-based compensation and related expenses, and $0.4 million for deferred compensation plan expense, compared with $96.7 million for the quarter ended December 31, 2023, excluding $39.9 million for stock-based compensation expense and $4.9 million for deferred compensation plan expense.

GAAP operating income was $163.3 million for the quarter ended December 31, 2024, compared with $109.6 million for the quarter ended December 31, 2023.

Non-GAAP operating income (1) was $220.7 million for the quarter ended December 31, 2024, excluding $56.3 million for stock-based compensation and related expenses, $0.8 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets, compared with $156.1 million for the quarter ended December 31, 2023, excluding $41.1 million for stock-based compensation expense and $5.4 million for deferred compensation plan expense.

GAAP other income, net was $6.2 million for the quarter ended December 31, 2024, compared with $10.0 million for the quarter ended December 31, 2023.

Non-GAAP other income, net (1) was $6.0 million for the quarter ended December 31, 2024, excluding $0.2 million for deferred compensation plan income, compared with $4.9 million for the quarter ended December 31, 2023, excluding $5.1 million for deferred compensation plan income.

GAAP income before income taxes was $169.5 million for the quarter ended December 31, 2024, compared with $119.5 million for the quarter ended December 31, 2023.

Non-GAAP income before income taxes (1) was $226.7 million for the quarter ended December 31, 2024, excluding $56.3 million for stock-based compensation and related expenses, $0.6 million for net deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets, compared with $161.0 million for the quarter ended December 31, 2023, excluding $41.1 million for stock-based compensation expense and $0.3 million for net deferred compensation plan expense.

GAAP net income was $1.4 billion and $29.88 per diluted share for the quarter ended December 31, 2024. Comparatively, GAAP net income was $96.9 million and $1.98 per diluted share for the quarter ended December 31, 2023. GAAP net income and income per diluted share for the quarter ended December 31, 2024 included $1.3 billion for the recognition of a tax benefit granted to a foreign subsidiary.

Non-GAAP net income (1) was $198.4 million and $4.09 per diluted share for the quarter ended December 31, 2024 excluding $1.3 billion for the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP net income (1) for the quarter ended December 31, 2024 also excluded $56.3 million for stock-based compensation and related expenses, $0.6 million for net deferred compensation plan expense, $0.3 million for amortization of acquisition-related intangible assets and $22.8 million for the related tax effects, compared with $140.9 million and $2.88 per diluted share for the quarter ended December 31, 2023, excluding $41.1 million for stock-based compensation expense, $0.3 million for net deferred compensation plan expense and $2.5 million for the related tax effects.

The financial results for the year ended December 31, 2024 were as follows:

Revenue was $2.2 billion for the year ended December 31, 2024, a 21.2% increase from $1.8 billion for the year ended December 31, 2023.

GAAP gross margin was 55.3% for the year ended December 31, 2024, compared with 56.1% for the year ended December 31, 2023.

Non-GAAP gross margin (1) was 55.8% for the year ended December 31, 2024, excluding the impact of $7.0 million for stock-based compensation and related expenses, $1.5 million for deferred compensation plan expense and $1.2 million for amortization of acquisition-related intangible assets, compared with 56.4% for the year ended December 31, 2023, excluding the impact of $4.5 million for stock-based compensation expense and $0.9 million for deferred compensation plan expense.

GAAP operating expenses were $681.5 million for the year ended December 31, 2024, compared with $539.4 million for the year ended December 31, 2023.

Non-GAAP operating expenses (1) were $466.4 million for the year ended December 31, 2024, excluding $206.2 million for stock-based compensation and related expenses, $8.8 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets, compared with $385.4 million for the year ended December 31, 2023, excluding $145.2 million for stock-based compensation expense, $8.7 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets.

GAAP operating income was $539.4 million for the year ended December 31, 2024, compared with $481.7 million for the year ended December 31, 2023.

Non-GAAP operating income (1) was $764.1 million for the year ended December 31, 2024, excluding $213.2 million for stock-based compensation and related expenses, $10.3 million for deferred compensation plan expense and $1.3 million for amortization of acquisition-related intangible assets, compared with $641.1 million for the year ended December 31, 2023, excluding $149.7 million for stock-based compensation expense, $9.6 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets.

GAAP other income, net was $33.6 million for the year ended December 31, 2024, compared with $24.1 million for the year ended December 31, 2023.

Non-GAAP other income, net (1) was $24.2 million for the year ended December 31, 2024, excluding $9.4 million for deferred compensation plan income, compared with $15.6 million for the year ended December 31, 2023, excluding $8.5 million for deferred compensation plan income.

GAAP income before income taxes was $572.9 million for the year ended December 31, 2024, compared with $505.8 million for the year ended December 31, 2023.

Non-GAAP income before income taxes (1) was $788.3 million for the year ended December 31, 2024, excluding $213.2 million for stock-based compensation and related expenses, $1.3 million for amortization of acquisition-related intangible assets and $0.9 million for net deferred compensation plan expense, compared with $656.7 million for the year ended December 31, 2023, excluding $149.7 million for stock-based compensation expense, $1.1 million for net deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets.

GAAP net income was $1.8 billion and $36.59 per diluted share for the year ended December 31, 2024. Comparatively, GAAP net income was $427.4 million and $8.76 per diluted share for the year ended December 31, 2023. GAAP net income and income per diluted share for the year ended December 31, 2024 included $1.3 billion for the recognition of a tax benefit granted to a foreign subsidiary.

Non-GAAP net income (1) was $689.8 million and $14.12 per diluted share for the year ended December 31, 2024 excluding $1.3 billion for the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP net income (1) for the year ended December 31, 2024 also excluded $213.2 million for stock-based compensation and related expenses, $1.3 million for amortization of acquisition-related intangible assets, $0.9 million for net deferred compensation plan expense and $26.9 million for the related tax effects, compared with $574.6 million and $11.78 per diluted share for the year ended December 31, 2023, excluding $149.7 million for stock-based compensation expense, $1.1 million for net deferred compensation plan expense, $0.1 million for amortization of acquisition-related intangible assets and $3.6 million for the related tax effects.

The following is a summary of revenue by end market (in thousands):

	Three Months Ended December 31,				Year Ended December 31,
End Market	2024		2023		2024		2023
Enterprise Data	$	194,867	$	128,897	$	716,264	$	322,980
Storage and Computing		136,507		117,312		501,576		491,139
Automotive		128,344		89,758		413,973		394,665
Communications		63,810		40,926		225,905		204,911
Consumer		57,311		43,741		202,015		234,660
Industrial		40,826		33,378		147,367		172,717
Total	$	621,665	$	454,012	$	2,207,100	$	1,821,072

Business Outlook

The following are MPS’s financial targets for the first quarter ending March 31, 2025:

Revenue in the range of $610.0 million to $630.0 million.

GAAP gross margin between 55.1% and 55.7%. Non-GAAP gross margin (1) between 55.4% and 56.0%, which excludes estimated stock-based compensation and related expenses of $1.7 million as well as the impact from amortization of acquisition-related intangible assets.

GAAP operating expenses between $180.2 million and $186.2 million. Non-GAAP operating expenses (1) between $126.9 million and $130.9 million, which excludes estimated stock-based compensation and related expenses in the range of $53.3 million to $55.3 million.

Total stock-based compensation and related expenses of $55.0 million to $57.0 million including approximately $1.7 million that would be charged to cost of goods sold.

Interest and other income in the range of $5.8 million to $6.2 million before foreign exchange gains or losses.

Non-GAAP tax rate of 15.0% for 2025.

Fully diluted shares outstanding between 47.8 million and 48.2 million.

(1) Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income, net, operating income and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense, amortization of acquisition-related intangible assets and related tax effects. Non-GAAP net income and non-GAAP net income per share also exclude the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to non-GAAP reconciliations in the tables set forth below.

Earnings Commentary
Earnings commentary on the results of operations for the quarter and year ended December 31, 2024 is available under the Investor Relations page on the MPS website.

Earnings Webinar
MPS plans to host a question-and-answer conference call covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, February 6, 2025. The live event will be held via a Zoom webcast, which can be accessed at: https://mpsic.zoom.us/j/96816578886. The Zoom webcast can also be accessed live over the phone by dialing (669) 444-9171; the webcast ID is 96816578886. A replay of the event will be archived and available for replay for one year under the Investor Relations page on the MPS website.

Safe Harbor Statement
This press release contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Business Outlook” section and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the first quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy and geopolitical uncertainties, including the collapse of certain banks in the U.S. and elsewhere and the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 29, 2024. MPS assumes no obligation to update the information in this press release or in the accompanying webinar.

About Monolithic Power Systems

Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

Contact:
Bernie Blegen
Executive Vice President and Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
MPSInvestor.Relations@monolithicpower.com


Monolithic Power Systems, Inc. Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value)

	December 31,			December 31,
	2024			2023
ASSETS
Current assets:
Cash and cash equivalents	$	691,816		$	527,843
Short-term investments		171,130			580,633
Accounts receivable, net		172,518			179,858
Inventories		419,611			383,702
Other current assets		109,978			147,463
Total current assets		1,565,053			1,819,499
Property and equipment, net		494,945			368,952
Acquisition-related intangible assets, net		9,938			–
Goodwill		25,944			6,571
Deferred tax assets, net		1,326,840			28,054
Other long-term assets		194,377			211,277
Total assets	$	3,617,097		$	2,434,353

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	102,526		$	62,958
Accrued compensation and related benefits		63,918			56,286
Other accrued liabilities		128,123			115,791
Total current liabilities		294,567			235,035
Income tax liabilities		65,193			60,724
Other long-term liabilities		111,570			88,655
Total liabilities		471,330			384,414
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,823 and 48,028, respectively		706,817			1,129,937
Retained earnings		2,487,461			947,064
Accumulated other comprehensive loss		(48,511	)		(27,062	)
Total stockholders’ equity		3,145,767			2,049,939
Total liabilities and stockholders’ equity	$	3,617,097		$	2,434,353


Monolithic Power Systems, Inc. Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share amounts)

	Three Months Ended December 31,					Year Ended December 31,
	2024			2023		2024			2023
Revenue	$	621,665		$	454,012	$	2,207,100		$	1,821,072
Cost of revenue		277,257			202,889		986,230			799,953
Gross profit		344,408			251,123		1,220,870			1,021,119
Operating expenses:
Research and development		85,762			71,459		324,748			263,643
Selling, general and administrative		95,339			70,095		356,764			275,740
Total operating expenses		181,101			141,554		681,512			539,383
Operating income		163,307			109,569		539,358			481,736
Other income, net		6,224			9,976		33,554			24,105
Income before income taxes		169,531			119,545		572,912			505,841
Income tax expense (benefit), net		(1,279,832	)		22,640		(1,213,788	)		78,467
Net income	$	1,449,363		$	96,905	$	1,786,700		$	427,374

Net income per share:
Basic	$	30.00		$	2.02	$	36.76		$	8.98
Diluted	$	29.88		$	1.98	$	36.59		$	8.76
Weighted-average shares outstanding:
Basic		48,317			47,936		48,599			47,610
Diluted		48,506			48,881		48,835			48,771


SUPPLEMENTAL FINANCIAL INFORMATION STOCK-BASED COMPENSATION EXPENSE (Unaudited, in thousands)

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Cost of revenue	$	1,720	$	1,228	$	6,305	$	4,545
Research and development		12,166		10,204		45,626		36,611
Selling, general and administrative		42,124		29,675		153,709		108,555
Total stock-based compensation expense	$	56,010	$	41,107	$	205,640	$	149,711


RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME (Unaudited, in thousands, except per share amounts)

	Three Months Ended December 31,					Year Ended December 31,
	2024			2023		2024			2023
Net income	$	1,449,363		$	96,905	$	1,786,700		$	427,374

Adjustments to reconcile net income to non-GAAP net income:
Stock-based compensation and related expenses*		56,320			41,107		213,209			149,711
Amortization of acquisition-related intangible assets		320			33		1,303			132
Deferred compensation plan expense, net		573			288		867			1,055
Tax effect of non-GAAP adjustments		(22,773	)		2,519		(26,922	)		(3,625	)
Recognition of a tax benefit granted to a foreign subsidiary		(1,285,402	)		–		(1,285,402	)		–
Non-GAAP net income	$	198,401		$	140,852	$	689,755		$	574,647

Non-GAAP net income per share:
Basic	$	4.11		$	2.94	$	14.19		$	12.07
Diluted	$	4.09		$	2.88	$	14.12		$	11.78

Shares used in the calculation of non-GAAP net income per share:
Basic		48,317			47,936		48,599			47,610
Diluted		48,506			48,881		48,835			48,771

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.


RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN (Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Gross profit	$	344,408		$	251,123		$	1,220,870		$	1,021,119
Gross margin		55.4	%		55.3	%		55.3	%		56.1	%

Adjustments to reconcile gross profit to non-GAAP gross profit:
Stock-based compensation and related expenses*		1,745			1,228			6,975			4,545
Amortization of acquisition-related intangible assets		287			–			1,171			–
Deferred compensation plan expense		417			486			1,500			871
Non-GAAP gross profit	$	346,857		$	252,837		$	1,230,516		$	1,026,535
Non-GAAP gross margin		55.8	%		55.7	%		55.8	%		56.4	%

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.


RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Total operating expenses	$	181,101		$	141,554		$	681,512		$	539,383

Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:
Stock-based compensation and related expenses*		(54,575	)		(39,879	)		(206,234	)		(145,166	)
Amortization of acquisition-related intangible assets		(33	)		(33	)		(132	)		(132	)
Deferred compensation plan expense		(376	)		(4,897	)		(8,767	)		(8,690	)
Non-GAAP operating expenses	$	126,117		$	96,745		$	466,379		$	385,395

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.


RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME (Unaudited, in thousands)

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Total operating income	$	163,307	$	109,569	$	539,358	$	481,736

Adjustments to reconcile total operating income to non-GAAP total operating income:
Stock-based compensation and related expenses*		56,320		41,107		213,209		149,711
Amortization of acquisition-related intangible assets		320		33		1,303		132
Deferred compensation plan expense		793		5,383		10,267		9,561
Non-GAAP operating income	$	220,740	$	156,092	$	764,137	$	641,140

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.


RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET (Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Total other income, net	$	6,224		$	9,976		$	33,554		$	24,105

Adjustments to reconcile other income, net to non-GAAP other income, net:
Deferred compensation plan income		(220	)		(5,095	)		(9,400	)		(8,506	)
Non-GAAP other income, net	$	6,004		$	4,881		$	24,154		$	15,599


RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES (Unaudited, in thousands)

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Total income before income taxes	$	169,531	$	119,545	$	572,912	$	505,841

Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:
Stock-based compensation and related expenses*		56,320		41,107		213,209		149,711
Amortization of acquisition-related intangible assets		320		33		1,303		132
Deferred compensation plan expense, net		573		288		867		1,055
Non-GAAP income before income taxes	$	226,744	$	160,973	$	788,291	$	656,739

*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.


2025 FIRST QUARTER OUTLOOK RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN (Unaudited)

	Three Months Ending
	March 31, 2025
	Low			High
Gross margin		55.1	%		55.7	%
Adjustment to reconcile gross margin to non-GAAP gross margin:
Stock-based compensation and other expenses		0.3	%		0.3	%
Non-GAAP gross margin		55.4	%		56.0	%


RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited, in thousands)

	Three Months Ending
	March 31, 2025
	Low			High
Operating expenses	$	180,200		$	186,200
Adjustments to reconcile operating expenses to non-GAAP operating expenses:
Stock-based compensation and other expenses		(53,300	)		(55,300	)
Non-GAAP operating expenses	$	126,900		$	130,900

The MIL Network –

February 7, 2025

MIL-OSI Global: Trump’s push to shut down USAID shows how international development is also about strategic interests

Source: The Conversation – Canada – By Nelson Duenas, Assistant Professor of Accounting, L’Université d’Ottawa/University of Ottawa

The U.S. Agency for International Development (USAID) is on the verge of being shut down by United States President Donald Trump’s administration.

On Feb. 4, U.S. Secretary of State Marco Rubio announced the agency would be taken over by the State Department. He stated that “all USAID direct hire personnel will be placed on administrative leave globally.”

This move comes after Trump and his officials have heavily criticized the role and ineffectiveness of the agency. Trump said USAID had “been run by a bunch of radical lunatics, and we’re getting them out,” while Tesla CEO and special government employee Elon Musk said it was “time for it to die.”

The closure of USAID will have significant consequences for many countries in the Global South. USAID is one of the largest development agencies in the world and funds programs that benefit millions of people, from supporting peace agreements in Colombia to fighting the spread of HIV in Uganda.

Around US$40 billion is allocated annually from the U.S. federal budget for humanitarian and development aid. If USAID is dismantled, it raises questions about how these funds will be redirected and the long-term impacts it will have on global development efforts.

A geopolitical fallout?

The potential dismantling of USAID has raised concerns among international development experts about a potential geopolitical fallout that could create unintended consequences for the U.S. itself.

Global issues, such as human security and climate change, are expected to be heavily affected. The U.S. also risks losing influence in the fight for soft power since dismantling USAID could leave behind a power vacuum. Other countries like Russia or China may occupy the space left by what was the largest international aid program in the world.

Read more:
USAid shutdown isn’t just a humanitarian issue – it’s a threat to American interests

This shift could result in the U.S. losing its influence in regions like Africa, South America and Asia, where the country distributed aid to a number of non-governmental organizations, aid agencies and non-profits.

While the future of U.S. foreign assistance remains uncertain, other world powers have a role to play. European donors, despite some limitations in resources, remain committed to the 2030 Sustainable Development agenda.

Beyond humanitarianism

If the agency is shut down, it may be widely condemned on moral and humanitarian grounds. However, its closure would respond to a logic of strategic and ideological interests that has long shaped the international development system. This a key finding from my longstanding field research with organizations that receive funding, not only from USAID, but also from Canadian and European donors.

International development largely unfolded in the aftermath of the Second World War when global powers competed to establish a new world order. This led to the creation of international agreements and multilateral institutions, with major industrialized nations emerging as the primary donors of foreign aid.

While many international initiatives, like the Millennium Development Goals and the 2030 Agenda for Sustainable Development, have guided development as we know it, the governments of main donor countries have their own interests in mind when providing aid.

In my research, I have interviewed many people involved in the foreign aid chain, including directors and offices of international non-governmental organizations and governmental co-operation agencies. Many said development relationships are shaped by both the interests of donors and those of recipient populations and organizations.

While these relationships may be based on humanitarian objectives, such as disaster relief or human rights advocacy, they can also be influenced by ideological, geopolitical, economic and social agendas.

In this context, the American move to eliminate USAID could be seen as one that prioritizes national security and economic goals over traditional global humanitarian concerns. Governments steer the wheel of international development according to their political ideologies and interests, regardless of the shock this may generate among citizens.

Canada’s role in all this

The U.S. is not the only country re-evaluating its international development policy. Sweden, another major country in the foreign aid sphere, is also changing its co-operation strategy following changes in its government and criticism of the NGOs that deploy their development assistance.

Canada’s role in this unfolding situation remains uncertain. With the resignation of Prime Minister Justin Trudeau as head of the Liberal Party and the upcoming federal election, it’s unclear what will happen to Canada’s international development strategy going forward.

Under Stephen Harper, the country’s international development strategy was closely tied to expanding trade with developing countries based on maximizing the value of extractive economies and a strong defence policy. This approach aimed to bring value not only to the recipient country of aid, but to Canada as well.

When Trudeau took office, Canada’s development strategy turned to a more progressive agenda centred on peace keeping, feminist approaches and humanitarian programs.

Will Canada continue to champion human rights, human security and progressive agendas? Or will Canada reduce funds for foreign assistance, which seems to be the wish of many of its citizens?

The answer to these questions will depend on the direction that our political leaders decide to take, and the sentiments of citizens. Still, Canada’s approach to development aid will probably remain in a trade-off between moral imperatives of humanitarianism and strategic national interests.

Nelson Duenas receives funding from the Social Sciences and Humanities Research Council (SSHRC)
Nelson Duenas is a researcher associated to l’Observatoire canadien sur les crises et l’action humanitaires

– ref. Trump’s push to shut down USAID shows how international development is also about strategic interests – https://theconversation.com/trumps-push-to-shut-down-usaid-shows-how-international-development-is-also-about-strategic-interests-249118

MIL OSI – Global Reports –

February 7, 2025
MIL-OSI USA: Kennedy: America won’t forget if UK gives away Chagos Islands with US military base
US Senate News:
Source: United States Senator John Kennedy (Louisiana)

Watch Kennedy’s comments here.

WASHINGTON – Sen. John Kennedy (R-La.) warned the United Kingdom that it could damage its relationship with the United States if it threatens the future of the joint U.S.-U.K. military base on the island of Diego Garcia by ceding sovereignty of the Chagos Islands to Mauritius.

Key excerpts of the speech are below:

“Do you know who is loving all of this? China, because China has a close relationship with Mauritius. And do you know what? It is going to get a lot closer.

“This is insane. This is cell-deep stupid. This is bone-deep, down-to-the-marrow stupid. Because the United Nations wants the United Kingdom to feel guilty, they want to give our military base and their military base to Mauritius. Now, the prime minister of the United Kingdom can stop this.”

. . .

“Please, Mr. Prime Minister, don’t do this. Don’t do this. We will stand with you in telling the United Nations, who is upset with you, to go fill out a hurt feelings report because we are not doing it. We will stand with you. Please say no. Don’t give our military base away. It is going to really hurt the relationship between the United States of America and the United Kingdom.”

Background
- The U.K. had previously announced on Oct. 3, 2024, that it had reached a deal with Mauritius to cede the sovereignty of the Chagos Islands. This deal between the U.K. and Mauritius would jeopardize the security of a key U.S.-U.K. military base on Deigo Garcia by potentially exposing the island to Chinese espionage efforts, according to a report from the Policy Exchange.
- Negotiations between the U.K. and Mauritius followed a years-long pressure campaign from the United Nations to get England out of the Chagos Islands. The Biden administration also reportedly pressured the U.K. to enter the deal with Mauritius before the American and Mauritian elections took place—an idea Prime Minister Keir Starmer initially endorsed.
- On Oct. 23, 2024, Kennedy wrote to then-Secretary of State Antony Blinken seeking answers about the Biden administration’s involvement in the deal between the U.K. and Mauritius.
- Kennedy also penned this op-ed in Oct. 2024 arguing that the Biden administration owes the American people an explanation for its decision to allow this deal between the U.K. and Mauritius to move forward.
- On Jan. 15, 2025, Starmer announced that he wanted President Trump and his administration to weigh in on any deal struck between the U.K. and Mauritius regarding the transfer of the Chagos Islands, including the transfer of the U.S.-U.K. shared military base on the island of Diego Garcia.
- Kennedy published this op-ed in Jan. 2025 welcoming the U.K.’s change of heart after Starmer announced that he would include the Trump administration in the ongoing negotiations with Mauritius.
- Former Rep. Mike Waltz (R-Fla.), President Trump’s nominee for National Security Advisor, has criticized the deal, saying, “Should the U.K. cede control of the Chagos to Mauritius, I have no doubt that China will take advantage of the resulting vacuum.”
- Secretary of State Marco Rubio has similarly condemned the deal and said it “poses a serious threat to our national security interests in the Indian Ocean and threatens critical U.S. military posture in the region.”
Watch Kennedy’s full speech here.
MIL OSI USA News –
February 7, 2025
MIL-OSI USA: Kennedy: Americans understand what DOGE is doing

US Senate News:

Source: United States Senator John Kennedy (Louisiana)

Watch Kennedy’s comments here.

WASHINGTON – Sen. John Kennedy (R-La.) explained why many Americans support the efforts of the Department of Government Efficiency (DOGE) to uncover wasteful spending at the United States Agency for International Development (USAID) in a speech on the Senate floor.

Key excerpts of the speech are below:

“[Americans] have had to live through 20% inflation under President Biden. They understand what [Elon] Musk is doing. They understand spending porn and wasting taxpayer money.

“Now, Mr. Musk started with USAID. . . . He found that USAID gave money to support electric vehicles in Vietnam—our money, taxpayer money. He found that USAID gave money to a transgender clinic in India. I didn’t know that. I bet you the American people didn’t know that.

“He found that USAID gave $1.5 million to a Serbian LGBTQ group. . . . They got $1.5 million to ‘advance diversity, equity, and inclusion in Serbia’s workplaces and business communities.’ What else did Mr. Musk find that my colleagues don’t want to talk about?”

. . .

“Now, I am not saying everything that USAID does is wasted, but I am saying a lot of it is—a hell of a lot of it is—and we ought to be on the floor of this United States Senate thanking Mr. Musk, and we ought to be asking him to go through every agency and look at everybody’s budget—everybody’s budget.

“That is what the American people want. They don’t want to talk about process. They don’t want to continue with the Washington way. They want to save some money.”

Watch Kennedy’s full speech here.

MIL OSI USA News –

February 7, 2025
MIL-OSI Russia: The Institute of Physical Culture, Sports and Tourism celebrated its 10th anniversary

Translartion. Region: Russians Fedetion –

Source: Peter the Great St Petersburg Polytechnic University – Peter the Great St Petersburg Polytechnic University –

On February 5, the Institute of Physical Culture, Sports and Tourism (IPCST) of Peter the Great St. Petersburg Polytechnic University celebrated its tenth anniversary.

Over the years, the Institute has become a true center of attraction for all who strive for an active sports life and professional development in the field of physical culture and tourism. It trains highly qualified specialists who are able to make a significant contribution to the development of sports and an active lifestyle. Over 10 years, 11 departments have been formed at the IPCST, each of which occupies an important place in the educational process.

The Department of Physical Fitness and Sport offers elective courses and online learning to over 9,000 students in 10 specializations. The online courses developed by the department are hosted on major educational platforms, making them accessible to a wide audience.

The Higher School of Sports Education trains qualified personnel, offering more than 20 disciplines and actively cooperating with European universities. Particular attention is paid to the development of competencies in the use of technical means in sports.

The student sports club “Black Bears-Polytech” is the pride of the institute. With 73 sports, 40 masters of sports and 1250 athletes, the club annually holds about 50 events and has won first place in St. Petersburg student competitions for ten years in a row.

The Center for Continuing Education organizes the educational process according to general education programs, advanced training programs and professional retraining, ensuring continuous development and updating of knowledge.

The GTO Standards Testing Center holds festivals twice a year, attracting thousands of participants. Each year, more than 2,000 people receive distinctions through our Center.

The Center for Physical Culture and Health Services offers a wide range of opportunities for training on the Institute’s sports grounds.

The Scientific and Educational Center for Computer Sports is actively developing digital sports based on the first university phygital center in Russia, Berloga. The center’s athletes achieve high results in games such as Counter-Strike, DOTA 2, League of Legends, etc.

The Polytechnic sports complex, with an area of over 32.5 thousand square meters, includes two swimming pools, a multifunctional stadium and over 20 sports halls, providing students with all the necessary conditions for training and competitions.

“The decade of the IPCST is not only about achievements, but also about plans for the future. We strive to continue developing our programs, introducing new technologies into education and expanding international cooperation,” says IPCST Director Valery Sushchenko. “We thank all teachers, students and partners for their contribution to the development of our institute. Together we create a unique atmosphere for education and sports achievements. Let the next ten years be no less successful and full of new achievements!”

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 –

February 7, 2025
MIL-OSI New Zealand: Universities – ‘Inequities stick out to me’, says new Professor Sir Collin Tukuitonga – UoA

Source: University of Auckland (UoA)

This month, Sir Collin Tukuitonga became one of two professors of Niuean descent in the world.

Professor Sir Collin says it’s an honour to join the ranks of his University of Auckland colleague, Professor of Pacific Health Vili Nosa, also from Niue – one of the smallest countries on the globe, with a population of less than 1,700 people.

“I’m not a true-blue academic. I didn’t do a PhD and stay in the university forever. I gained a lot of practical experience elsewhere, so it’s nice to be accepted by my peers in academic medicine,” says Sir Collin.

He is a director of Poutoko Ora a Kiwa – Centre for Pacific and Global Health at the University, was knighted in 2022 and is a man with his own Wikipedia page. His ‘practical experience’ spans everything from being chief executive of the New Zealand Ministry of Pacific Affairs from 2007 to 2012 to developing a global strategy to improve diet and physical activity that was adopted by the World Health Organisation (WHO) in 2004.

Addressing health inequities faced by Pacific and Māori people has been the motivating force behind Sir Collin’s career over the past 45 years.

“People with the means often get too much medicine and those who need it the most get the least.

“Those inequities stick out to me – Māori and Pacific people have poorer health and it’s entrenched.

“We have the resources, skills, equipment and facilities to make a change and yet we haven’t.

“It seems unfair, unacceptable to me – and that’s the key driver, why I’m involved in public health,” he says.

Growing up in Niue, seeds of caring for family and community were planted that have borne fruit during his career in public health.

“We didn’t have much, not many books. We first had the radio when I was 10, electricity wasn’t a regular thing, so it was a pretty basic existence.

“You didn’t expect much for yourself – you didn’t think about whether you had the latest flashy clothes or shoes.

“You helped in the plantation, going fishing, it was all centred around contributing to the family and helping in the village.

“I guess that’s where I got my sense of social justice – your talents are not just for yourself.”

At the age of 15, Sir Collin’s fate was shaped by gaining a scholarship to study medicine.

“I was lucky I had a decent brain and I got one of two New Zealand government scholarships to go to university in Fiji.

“I had always been interested in helping people, so medicine was a natural selection, but the availability of the scholarship was a big factor.

“My family would not have been able to send me to university – I would have been a fisherman,” he says.

Leaving behind his “charmed life” in Niue, where he had been pampered by three sisters and surrounded by cousins, was a huge step, but Fiji still offered the simple pleasures of island life.

Sir Collin graduated as a junior doctor in 1979 and worked as a “real doctor” in family medicine for about 15 years.

He returned to Niue to offer his skills to his island community, before being appointed to teach public health at the Fiji School of Medicine in 1987. A military coup later that year raised fears for the safety of his first wife and their young children, so they fled to New Zealand – a place Sir Collin has called home ever since.

In the late 1980s, he was a key figure involved in setting up a Pacific healthcare clinic in West Auckland, which is now called The Fono.

Having mainly Pasifika staff and low fees has helped make healthcare more accessible for many Pacific people.

While working as a GP in West Auckland, he saw patterns of hardship and poor health that made him determined to help change the health system.

“It was predominantly families with young children and you saw the same things over and over again – chesty coughs, skin infections, those kinds of things, which if you’re a thinking person, you have to say, ‘there has to be a better way than waiting for them to come back to the clinic with the same thing’.

“Those things were to do with cold, damp, overcrowded housing, poor nutrition and delayed access to health care.

“I thought if I was involved in public health, you could theoretically prevent those problems.”

He became Director of Public Health at the New Zealand Ministry of Health in 2001.

In this role, he contributed to programmes designed to reduce smoking harm in Pacific communities. Over the past 30 years, smoking rates have halved, though about twice as many Māori and Pacific people still smoke, compared to Pakeha New Zealanders.

“Smoking in young people in New Zealand is now 4.2 percent, compared to 27 percent of adults smoking in 1993. So that’s a significant achievement for New Zealand and I helped contribute to that.”

Sir Collin helped introduce a vaccine for meningitis B, during an epidemic of the disease in the early 2000s.

“We had high mortality rates among young Māori and Pacific people in New Zealand and the vaccine led to a significant drop in occurrence of the disease, so I was pleased to help that along.”

His overseas roles have included three years at the World Health Organisation in Geneva, Switzerland, and seven years in New Caledonia, where he was director-general of the Pacific Community.

More recently, he played an important role in advising the New Zealand government and communicating with Pacific communities during the Covid pandemic.

However, in December 2023, he resigned from his role as chairperson of Te Whatu Ora Pacific Senate and spoke out regarding his concerns about the new government’s direction.

“I was really incensed when they repealed our smoke-free legislation. I know that by undoing that world-leading legislation, Māori and Pacific people are going to be the worst affected – and all for the purpose of them meeting their commitment to their friends to make tax cuts.

“I couldn’t continue on the advisory committees when clearly they were not interested in anything apart from what was on their agenda.”

The roots of Pacific people having higher rates of health problems, ranging from cancer to measles, lie in deeper disadvantages, says Sir Collin.

“Health is a symptom of underlying social conditions. It’s an extension of disparities in education, income, housing and diet.

“We can’t just deal with it in the health sector, we have to deal with those issues – and they’re difficult issues.”

Through the hard times, Sir Collin has been buoyed up by Pacific people thanking him for looking out for their wellbeing and speaking up for them.

These days, the 67-year-old father of five is enjoying mentoring and supporting young people at the University, while much of his spare time is spent developing and planting native trees on his family’s lifestyle block near Pakiri.

“There’s no set retirement age these days and I love working with my many clever colleagues at the university.

“My friends say that when you retire and you don’t use your brain, it rots. I’m terrified of that possibility,” he laughs.

MIL OSI New Zealand News –

February 7, 2025
MIL-OSI USA: Senator Marshall in Senate Ag Committee Hearing: Farmers’ Mental Health is Near and Dear to My Heart

US Senate News:

Source: United States Senator for Kansas Roger Marshall

Washington, D.C. – U.S. Senator Roger Marshall, M.D. gave remarks in the Senate Agriculture Committee Hearing this week regarding the mental health of America’s farmers. Senator Marshall discussed the immense pressure America’s food producers are under in today’s market, stressing the importance of mental health awareness and community support for farmers and ranchers.

[embedded content]

You may click HERE or on the image above to watch Senator Marshall’s full interview.
Highlights from Senator Marshall’s remarks include:
On mental health awareness for America’s food producers:
U.S. Senator Roger Marshall, M.D.: “I want to talk about farmer mental health for a second, and farmer suicide. This is something near and dear to my heart for many reasons. Over the past several years, we try to go out in the communities, doing round tables, trying to connect the dots. The resources are out there to help. And I want to back up and just say to all my farmers and ranchers, the pressure is very real. The pressure is very real. The pressure of losing a fifth, sixth, seventh generation farm, to be that person that couldn’t keep the farm together in the family.”
“…I wanted to talk about solutions, and I know American Farm Bureau has been out here trying to connect these dots as well, on the resources, and appreciate the education programs you’re doing with the farmers. I’m trying to work with lenders out there. The lenders are some of the first people to see the signs and symptoms of depression, and I think we’re making progress, but it’s still tough times in ag land.
Mr. Zippy Duvall, President, American Farm Bureau Federation: “…Our organizations have worked arm in arm to try to bring awareness to this, you know, and this is a difficult subject to talk about. It really is. But we did a survey in Georgia, Florida area, and the alarming fact that we heard is that young farmers…I think that in less than 10 years, that 50% of them had considered suicide in that 10 years. 50%.”
“…And you know, I’m a crusty old farmer, and when my wife died, yeah, I bottled it all up inside, like crusty old farmers do, and they say we don’t talk about our feelings. Well, I was wrong. It’s okay to not be okay, but it’s not okay not to talk about it, and we got to get rid of the stigma that goes along with it, and the only way to do that is to talk to farmers, make farmers in the families aware, to be noticeable what’s going around, just like you’re working with the Farm Credit System, because they see them every day.”U.S. Senator Roger Marshall, M.D.: “…I just encourage everybody to be a good neighbor. Most of us notice when our neighbor suddenly is not going to church, or they’re not going to a ball game. And there’s some of those very subtle hints out there that we’re all aware of.”

MIL OSI USA News –

February 7, 2025
MIL-OSI: Nokia Corporation: Repurchase of own shares on 06.02.2025
Source: GlobeNewswire (MIL-OSI)

Nokia Corporation
Stock Exchange Release
6 February 2025 at 22:30 EET

Nokia Corporation: Repurchase of own shares on 06.02.2025

Espoo, Finland – On 6 February 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 1,379,268 4.64

CEUX – –

BATE – –

AQEU – –

TQEX – –

Total 1,379,268 4.64

* 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 6 February 2025 was EUR 6,405,596. After the disclosed transactions, Nokia Corporation holds 240,903,874 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
- Daily Report 2025-02-06
The MIL Network –
February 7, 2025
MIL-Evening Report: Gaza: we analysed a year of satellite images to map the scale of agricultural destruction

Source: The Conversation (Au and NZ) – By Lina Eklund, Associate Senior Lecturer, Lund University

Part of North Gaza in November 2023, and again in July 2024.

SkySat imagery © 2025/Planet Labs PBC

The ceasefire agreed between Israel and Hamas makes provisions for the passage of food and humanitarian aid into Gaza. This support is much needed given that Gaza’s agricultural system has been severely damaged over the course of the war.

Over the past 17 months we have analysed satellite images across the Gaza Strip to quantify the scale of agricultural destruction across the region. Our newly published research reveals not only the widespread extent of this destruction but also the potentially unprecedented pace at which it occurred. Our work covers the period until September 2024 but further data through to January 2025 is also available.

Before the war, tomatoes, peppers, cucumbers and strawberries were grown in open fields and greenhouses, and olive and citrus trees lined rows across the Gazan landscape. The trees in particular are an important cultural heritage in the region, and agriculture was a vital part of Gaza’s economy. About half of the food eaten there was produced in the territory itself, and food made up a similar portion of its exports.

By December 2023, only two months into the war, there were official warnings that the entire population of Gaza, more than 2 million people, was facing high levels of acute food insecurity. While that assessment was based on interviews and survey data, the level of agricultural damage across the whole landscape remained out of view.

Most olive and citrus trees are gone

To address this problem, we mapped the damage to tree crops – mostly olive and citrus trees – in Gaza each month over the course of the war up until September 2024. Together with our colleagues Dimah Habash and Mazin Qumsiyeh, we did this using very high-resolution satellite imagery, detailed enough to focus on individual trees.

We first visually identified tree crops with and without damage to “train” our computer program, or model, so it knew what to look for. We then ran the model on all the satellite data. We also looked over a sample of results ourselves to confirm it was accurate.

Our results showed that between 64% and 70% of all tree crop fields in Gaza had been damaged. That can either mean a few trees being destroyed, the whole field of trees completely removed, or anything in between. Most damage took place during the first few months of the war in autumn 2023. Exactly who destroyed these trees and why is beyond the scope of our research or expertise.

In some areas, every greenhouse is gone

As greenhouses look very different in satellite images, we used a separate method to map damage to them. We found over 4,000 had been damaged by September 2024, which is more than half of the total we had identified before the start of the war.

Greenhouses and the date of initial damage between October 2023 and September 2024.
Yin et al (2025)

In the south of the territory, where most greenhouses were found, the destruction was fairly steady from December 2023 onwards.

But in north Gaza and Gaza City, the two most northerly of the territory’s five governorates, most of the damage had already taken place by November and December 2023. By the end of our study period, all 578 greenhouses there had been destroyed.

North Gaza and Gaza City have also seen the most damage to tree crop fields. By September 2024, over 90% of all tree crops in Gaza City had been destroyed, and 73% had been lost in north Gaza. In the three southern governorates, Khan Younis, Deir al-Balah and Rafah, around 50% of all tree crops had been destroyed.

Agricultural damage is common in armed conflict, and has been documented with satellite analysis in Ukraine since the 2022 Russian invasion, in Syria and Iraq during the ISIS occupation in 2015, and in the Caucasus during the Chechen wars in the 1990s and 2000s.

The exact impact can differ from conflict to conflict. War may directly damage lands, as we have seen in Gaza, or it may lead to more fallow areas as infrastructure is damaged and farmers are forced to flee. A conflict also increases the need for local agricultural production, especially when food imports are restricted.

Our assessment shows a very high rate of direct and extensive damage to Gaza’s agricultural system, both compared to previous conflict escalations there in 2014 and 2021, and in other conflict settings. For example, during the July-August war in 2014, around 1,200 greenhouses were damaged in Gaza. This time round at least three times as many have been damaged.

Agricultural attacks are unlawful

Attacks on agricultural lands are prohibited under international law. The Rome Statute of the International Criminal Court from 1998 defines the intentional use of starvation of civilians through “depriving them of objects indispensable to their survival” as a war crime. The Geneva conventions further define such indispensable objects as “foodstuffs, agricultural areas for the production offoodstuffs, crops, livestock, drinking water installations and supplies and irrigation works”.

Our study provides transparent statistics on the extent and timing of damage to Gaza’s agricultural system. As well as documenting the impacts of the war, we hope it can help the massive rebuilding efforts that will be required.

Restoring Gaza’s agricultural system goes beyond clearing debris and rubble, and rebuilding greenhouses. The soils need to be cleaned from possible contamination. Sewage and irrigation infrastructure need to be rebuilt.

Such efforts may take a generation or more to complete. After all, olive and citrus trees can take five or more years to become productive, and 15 years to reach full maturity. After previous attacks on Gaza the trees were mostly replanted, and perhaps the same will happen again this time. But it’s for good reason they say that only people with hope for the future plant trees.

Lina Eklund receives funding from the Swedish National Space Agency and the Strategic Research Area: The Middle East in the Contemporary World (MECW) at the Centre for Advanced Middle Eastern Studies, Lund University, Sweden.

He Yin receives funding from NASA.

Jamon Van Den Hoek receives funding from NASA.

– ref. Gaza: we analysed a year of satellite images to map the scale of agricultural destruction – https://theconversation.com/gaza-we-analysed-a-year-of-satellite-images-to-map-the-scale-of-agricultural-destruction-248796

MIL OSI Analysis – EveningReport.nz –

February 7, 2025
MIL-OSI United Nations: Experts of the Committee on the Elimination of Discrimination against Women Praise Belarus for Progress in Preventing Trafficking, Ask about Criminalisation of HIV Transmission and Reported Repression of Civil Society

Source: United Nations – Geneva

The Committee on the Elimination of Discrimination against Women today concluded its consideration of the ninth periodic report of Belarus, with Committee Experts praising the State’s progress in preventing trafficking, and raising questions about the criminalisation of HIV transmission and reports of repression of civil society.

Elgun Safarov, Committee Expert and Rapporteur for Belarus, and other Experts commended Belarus’ awareness-raising projects on the prevention of trafficking and women’s empowerment.

One Committee Expert noted that Belarus had a high number of criminal cases related to HIV. Transmission of HIV was penalised with imprisonment of up to five years. Was the State party rethinking this law?

Mr. Safrov said many very important non-governmental organizations had been closed recently. What were the reasons for these closures? There were reports of repression of women journalists and activists.

Several other Experts expressed concern about reports that women who expressed dissent were punished and detained. What plans were in place to protect women activists from gender-based violence and State repression? Why were civil society organizations engaged in the protection of human rights dissolved by the State?

Introducing the report, Larysa Belskaya, Permanent Representative of Belarus to the United Nations Office at Geneva and head of the delegation, said Belarus strived to fully ensure equal rights and opportunities for women in all spheres. In an extremely difficult geopolitical situation, Belarus progressively built a society where every person could have decent living conditions and benefit society.

The delegation said Belarus had taken measures to eliminate trafficking in persons and to identify and rehabilitate victims. In 2024, authorities identified 1,500 cases of suspected trafficking and identified several victims, including minors. The State worked with civil society to build the capacity of law enforcement staff related to trafficking; 90 training sessions had been held in 2024.

Concerning the transmission of HIV, the delegation said that in 2023, nine women had been penalised for transmitting HIV and 12 women were penalised in 2022. The State party was continuing to reduce the stringency of HIV legislation. A draft law had been developed to decriminalise unintentional transmission of HIV. Penalties for the deliberate transmission of HIV would remain.

The delegation said the Committee’s assessments related to repression were not appropriate. The protests that took place in Belarus over the reporting period were in many cases not peaceful. Certain extremist actions were taken by media workers. The Government was working to increase understanding of the situation.

Civil society in Belarus was active, the delegation added. The State party had over 1,500 civil society organizations, including women’s organizations. In 2020, there was an attempt to carry out a coup d’etat by several non-governmental organizations engaged in anti-Government activities. A court decision held these organizations and their members responsible for violating the law. This should not be considered repression of civil society. In 2023, a new law on the activities of civil society was adopted that required organizations to re-register. Many non-governmental organizations had not completed the new registration procedure and had been shut down. Citizens were entitled to renew the activities of previous non-governmental organizations.

In closing remarks, Ms. Belskaya said Belarus had achieved much in terms of gender equality and empowering women. The discussion helped the State party to identify the remaining issues to be addressed. The Committee’s recommendations would be carefully considered by the National Council on Gender Equality and used to construct the next national action plan on gender equality

In her closing remarks, Nahla Haidar, Committee Chair, commended the State party for its efforts and encouraged it to implement the Committee’s recommendations for the benefit of all women and girls in Belarus.

The delegation of Belarus consisted of representatives from the Ministry of Labour and Social Protection; Ministry of Health; and the Permanent Mission of Belarus to the United Nations Office at Geneva.

The Committee will issue the concluding observations on the report of Belarus at the end of its ninetieth session on 21 February. All documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage. Meeting summary releases can be found here. The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

The Committee will next meet at 10 a.m. on Friday, 7 February to consider the eighth periodic report of Luxembourg (CEDAW/C/LUX/8).

Report

The Committee has before it the ninth periodic report of Belarus (CEDAW/C/BLR/9).

Presentation of Report

LARYSA BELSKAYA, Permanent Representative of Belarus to the United Nations Office at Geneva and head of the delegation, said Belarus was committed to the principles of the Convention and strived to fully ensure equal rights and opportunities for women and men in all spheres. Its Gender Gap Index score had almost halved from 0.152 in 2014 to 0.096 in 2024, placing the country 29th out of 166 countries. In an extremely difficult geopolitical situation, Belarus preserved its State, peace and tranquillity, and progressively built a society of equal opportunities, where every person could have decent living conditions and benefit society.

Over the years, the Government had made serious efforts to implement the Convention and had achieved concrete results for the advancement of women. Gender policy was coordinated by the National Council on Gender Policy. Every five years, national action plans on gender equality were adopted. This year, the sixth national action plan (2021-2025), the goals and objectives of which were linked to the Sustainable Development Goals, was being implemented. Work was also progressively being carried out to introduce mechanisms for gender analysis of legislation and gender budgeting in the development of draft State plans and programmes.

The National Statistical Committee had developed thematic information systems that made it possible to analyse the situation in the field of gender equality. The “Gender Statistics Web Portal” contained 178 gender statistics. In 2020, the Labour Code introduced a norm establishing paternity leave of up to 14 days within six months after the birth of the child. The Government was also working to calculate the value of unpaid domestic services not included in gross domestic product. The final data would be published in June 2025.

Belarussian women were actively promoted to managerial positions. In the National Assembly, the share of women in 2023 was 36 per cent. At the same time, in the House of Representatives, their share was 40.6 per cent. Women accounted for 47 per cent of local self-government bodies. Among senior civil servants, the share of women in 2023 was 54.6 per cent; among judges, 64.4 per cent.

Labour legislation provided for parents with family responsibilities an additional day off from work per month or reduced working days, flexible forms of employment, and remote employment. The country guaranteed access for all citizens to health care, education, social services, culture and sports. At the birth of a child, the State provided material support to all families and the payment of insurance premiums. Benefits for pregnancy, childbirth and temporary disability had been increased, as had social support for parents raising a child with disabilities. Since 2015, the State also provided a one-time non-cash provision equalling 10,000 United States dollars at the birth or adoption of third or subsequent children.

The Belarussian Women’s Union, which united 162,000 women, worked to raise the status of women in society and their role in all spheres of life, and there were 15 more women’s organizations in Belarus. In total, as of October 2024, there were 1,466 public associations; 18 new public associations were registered in 2024.

In Belarus, the literacy rate of the population aged 15 and over was almost 100 per cent. General secondary education was compulsory for all. The percentage of women in higher education was about 53 per cent. Almost 92 per cent of women aged 16-72 used the Internet.

For several years, there had been a decrease in the female working age unemployment rate, from 3.1 per cent in 2019 to 2.7 per cent in 2023. This figure was lower than the male unemployment rate, which was 4.1 per cent in 2023. More than 42 per cent of employed women had completed higher education and 70 per cent of civil servants were women. The share of women among researchers in Belarus was 39.2 per cent. In 2024, for the first time, a female cosmonaut from Belarus, Marina Vasilevskaya, flew to the International Space Station. Belarus was also actively developing women’s entrepreneurship; the representation of women in this area was 36.4 per cent. In 2023, the first Forum of Women Entrepreneurs was held, with the active participation of the Belarussian Women’s Union.

Every woman, regardless of income, had the opportunity to receive any type of medical care free of charge. Unprecedented measures were being taken in the country to protect motherhood and childhood, to accompany women during pregnancy, and to carry out annual medical examinations. Belarus was among the 25 countries with the highest rating in terms of access to sexual and reproductive health, information and education. The proportion of women using various types of contraception increased from 39.9 per cent in 2010 to 53.2 per cent in 2021. The number of abortions per 1,000 women of childbearing age over the past 10 years had decreased by almost two times to 6.2 per cent in 2023. Since 2011, no cases of illegal abortions had been registered in the country.

Specific measures were being taken in Belarus to prevent domestic violence. In 2022, protective measures for victims and preventive measures against violators were strengthened. Every year, about 15,000 victims turned to regional social service centres for help. A network of “crisis” rooms was being developed, with 134 rooms having been established as of 2024. There were no restrictions on the time in which people could live in these rooms; in the first half of 2024, 81 women lived in them. Public and international organizations were involved in aiding women victims of domestic violence.

From today’s dialogue, Belarus expected practical and implementable recommendations that would allow it to implement high international standards in State policy to ensure equal rights and expand opportunities for women.

Questions by a Committee Expert

ELGUN SAFAROV, Committee Expert and Rapporteur for Belarus, said that Belarus had developed family and women policy, implemented many awareness-raising projects on the prevention of trafficking and women’s empowerment, organised several international conferences on women in entrepreneurship and science, and adopted several legislative acts on women rights protection during the reporting period. He expressed appreciation for the State party’s activities for the harmonisation of legislation and measures for the adoption of international standards.

However, the Committee had witnessed multiple violations of women’s rights. The State party did not have comprehensive anti-discrimination legislation that specifically prohibited discrimination against women, including direct and indirect discrimination, and also had no specific, stand-alone legislation on gender equality, or a law explicitly focused on ending all forms of gender-based violence, including domestic violence. Sexual harassment in the workplace remained unaddressed in legislation, and laws prohibited women’s participation in certain jobs.

There were many problems related to access to justice for women. There needed to be effective remedies for victims of discrimination. There was no special body for deciding cases related to discrimination against women. HIV transmission was criminalised. Why had some women lawyers’ licenses been terminated?

What measures were in place to incorporate a definition of equality between women and men in the Constitution and the Criminal Code? What mechanisms were in place to protect against discrimination? Had the Convention been translated into Belarussian? Were there any court cases that had referenced the Convention? Why had closed court sessions been held to try women who had participated in peaceful demonstrations? How were lawyers appointed? Did the State party keep data on criminal cases related to gender?

Responses by the Delegation

The delegation said Belarus did not have a comprehensive definition of discrimination against women in its legislation, but principles of equality were included in the Constitution and various laws. The Government had considered developing a single act on discrimination, but had found that existing legislation sufficiently banned discrimination. Legal amendments were introduced in 2022 to provide women and men with equal opportunities in employment, training and education. The rights of victims of sexual discrimination needed to be restored under law. All complaints of discrimination, including from women and foreign citizens, needed to be reviewed by relevant State authorities within a tight deadline. Discriminatory norms were not permitted in legislation. Follow-up on implementation of gender legislation was carried out by a dedicated group of the National Council on Gender Policy.

The Bar Association carried out activities to inform citizens about how they could access legal aid. Women who lodged a complaint related to workplace discrimination or the deprivation of parental rights, as well as pregnant women, vulnerable families and victims of trafficking, received legal aid free of charge. Women in prisons could receive legal aid when they submitted complaints. Women could choose their own lawyer, or were appointed one if they could not afford one.

Belarus had two national languages: Belarussian and Russian. Russian was more represented in State correspondence, but this did not hinder access to information on legislation for the population. The Convention was part of the national legal system and had been referenced in court proceedings. The Criminal Code recognised undermining of women’s bodily integrity as an offence. There were around 50 cases related to bodily harm in the first half of 2024, and 44 cases of other sexual offences.

Questions by Committee Experts

A Committee Expert commended the Government on efforts to align policies with the Sustainable Development Goals. However, the Committee was concerned by the absence of an independent national human rights institution, and by the exclusion of civil society organizations that worked to safeguard women’s rights. Would the State party consider establishing a national human rights institution in line with the Paris Principles? Which Government agency was responsible for protecting women’s rights.

The Expert welcomed the policy to promote gender empowerment and gender sensitive budgeting. How would the national action plan on gender equality be monitored? How would the State party ensure the meaningful participation of civil society in this regard?

The Committee was deeply concerned by the increasingly shrinking civic space. Many women human rights defenders faced detention and restriction of activities. What plans were in place to protect women activists from gender-based violence and State repression? Why were civil society organizations that were engaged in the protection of human rights dissolved by the State?

Belarus had not adopted a national action plan on women, peace and security. Would it consider developing such a plan to mainstream gender perspectives into peacebuilding efforts?

One Committee Expert said the share of women in regional leadership positions was low and there were very few female ambassadors. Women who peacefully expressed diverse political opinions were at a high risk of being treated as extremists. Had the State party implemented temporary special measures to ensure gender equality in recent years? Were there measures to increase the representation of women in leadership positions, as well as in employment and education? What measures were in place to support vulnerable women and to mitigate the impact of the COVID-19 pandemic on gender equality?

Responses by the Delegation

The delegation said Belarus had State and public institutions protecting human rights, including the national councils on gender equality, children and disability, and the Environmental Committee, among others. The State had conducted consultations with civil society, international organizations and State agencies in 2017 related to the establishment of a national human rights institution. Belarus believed that creating a national human rights institution was not a priority as its existing bodies were working efficiently to protect human rights. This issue could be examined in more detail at a later stage.

The National Council on Gender Equality coordinated and monitored the implementation of national action plans on gender equality. From 2023 to 2024, a gender assessment methodology for legislation was adopted. Based on assessments, problems had been identified and measures were being planned to address them in the next national action plan.

Belarus was not a party to any conflict currently, so it had not implemented special measures related to women, peace and security. However, the Government had taken measures to protect Ukrainian refugees. Over 200,000 people had arrived from Ukraine in the past three years, more than half of whom were women. Belarus offered refugees temporary protection and the choice of becoming Belarussian citizens.

Civil society in Belarus was active. The State party had over 1,500 civil society organizations, as well as professional unions and women’s organizations. The Belarussian Women’s Union actively engaged with State authorities. There were also specialised civil society organizations supporting vulnerable women. The process for registering a civil society organization was simple and transparent; the State did not interfere in the registration of such organizations and provided regular support to existing organizations. Under the law on civil society organizations, such organizations could be closed based on court decisions finding that the organization had carried out unlawful propaganda or violated State legislation.

Citizens active in social activities had the right to be defended but were held liable when they violated the law. In 2020, there was an attempt to carry out a coup d’etat by several non-governmental organizations engaged in anti-Government activities. A court decision had held these organizations and their members responsible for violating the law. This should not be considered repression of civil society. After these events, laws on civil society were amended to provide incentives for more constructive civic activities. Non-governmental organizations in Belarus needed to work cooperatively with the State and could not be funded from abroad.

Questions by Committee Experts

A Committee Expert welcomed that the State party had not ruled out establishing a national human rights institution and called for serious consideration of its establishment. The Expert called for the development of a dedicated policy on women, peace and security. How many women’s organizations participated in the development and analysis of the national action plan on gender equality?

Another Committee Expert welcomed advances in protection from domestic violence, including the law on crisis prevention. However, gender stereotypes were spread in media communications and women were systematically silenced and controlled by the State – women who expressed dissent were attacked, punished and detained. Vulnerable women were often blamed and stigmatised when they sought protection. The State party implemented restraining orders for only 30 days and perpetrators were not expelled from homes.

Would the State party adopt a comprehensive strategy to address gender stereotyping, a comprehensive law against domestic violence, and penal protection against marital rape? How would the State party protect victims in criminal proceedings? What remedies had been provided to victims in recent years? How many persons had been convicted for domestic violence crimes? What services were provided in crisis rooms and how were personnel in these rooms trained? Why did the rooms also house men? Over 30 non-governmental organizations managing hotlines and shelters had been closed; why was this?

One Committee Expert commended the State party for addressing trafficking in persons by ratifying international conventions on trafficking and developing comprehensive laws related to trafficking. Could the State party provide data on trafficking and prostitution? What measures were in place to protect women with disabilities from trafficking and to identify victims of trafficking? How many investigations into trafficking had been carried out and how many persons were convicted? How was the State party strengthening protections for women and girls against trafficking, promoting their access to justice, and building the capacity of State officials on the gendered aspects of trafficking?

Responses by the Delegation

The delegation said analysis of the national action plan on gender equality was carried out twice a year. The Belarus Women’s Union was represented in the National Commission on Gender Equality and other bodies. The State party also closely cooperated with the Red Cross and other international organizations, and supported organizations of persons with disabilities. Seventy per cent of civil servants were women; 50 per cent were in middle management positions and were involved in preparing important political decisions.

Eliminating gender stereotypes was one of the goals of the national action plan for gender equality. The State party was working to enhance the role of fathers in carrying out domestic tasks and was working with civil society on a joint project encouraging responsible fatherhood. There was a programme on State television that presented case studies of successful professional women.

Persons who perpetrated domestic violence were required to leave the homes where victims lived, and authorities monitored compliance. The law on preventing domestic violence had been amended to address violence against former partners and cohabitants. The number of protective measures that had been implemented had increased significantly from around 18,000 in 2022 to 33,000 in 2024. The Government supported victims to stay in their homes. There were awareness raising campaigns in place to inform potential victims about reporting channels and preventing gender-based violence. All types of bodily harm were criminalised.

Every year, around 17,500 complaints of domestic violence were made. If women victims required temporary housing, it was provided. Shelters could be accessed 24 hours a day by victims and their children without documentation. There were hundreds of crisis rooms available, including 132 equipped for children. Work was underway to ensure access to the rooms for persons with disabilities.

Belarus had taken measures to eliminate trafficking in persons and to identify and rehabilitate victims. In 2024, authorities identified 1,500 cases of suspected trafficking and identified several victims, including minors. The State worked with civil society to build the capacity of law enforcement staff related to trafficking; 90 training sessions had been held in 2024. Specialists had been hired to support victims of various forms of trafficking. The State was also working to align national trafficking legislation with international norms, and various awareness raising campaigns on trafficking were also in place. Involvement in prostitution was an administrative offence; however, victims of trafficking were not prosecuted, but were provided with support.

Questions by Committee Experts

A Committee Expert welcomed that legislation was being amended regarding domestic violence, which needed to be made an aggravated circumstance in homicide offences. What measures were in place to ensure the safety of victims of domestic violence?

Another Committee Expert commended progress being made related to trafficking and prostitution.

ELGUN SAFAROV, Committee Expert and Rapporteur for Belarus, asked why there was a shortage of female Belarussian ambassadors. None of the chambers of Parliament had female chairs; there were no parliamentary committees working to protect women’s rights; and only one out of 24 Ministers was a woman. Why was this? How many Deputy Ministers were women? To what extent were women represented in the technological sector?

Many very important non-governmental organizations had been closed recently. What were the reasons for these closures? There were reports of repression of women journalists and activists.

One Committee Expert noted progress made in reducing statelessness through nationalisation efforts. However, 2,473 women remained stateless in the State party. Were there programmes addressing statelessness? When would the State party ratify the 1954 and 1967 United Nations conventions on statelessness? The State party had not established a clear procedure for protecting migrant mothers and newborns. Would it do so?

Responses by the Delegation

The delegation said the law on prevention of violence included a clause on educational programmes for perpetrators. The State party was interested in best practices in this field in other countries.

Women made up around 70 per cent of Belarus’ Ministry of Foreign Affairs. At a time, Belarus had four female ambassadors. Appointment to ambassadorial roles was based on competitive selection and there was a shortage of women applicants. Women were broadly represented as deputy chairs of parliamentary committees and made up around 50 per cent of the members of local councils. Belarus aimed to improve women’s representation in all fields.

The Committee’s assessments related to repression were not appropriate. The protests that took place in Belarus over the reporting period were in many cases not peaceful. Certain extremist actions were taken by media workers. The Government was working to increase understanding of the situation.

In 2023, a new law on the activities of civil society was adopted that required organizations to re-register. Many non-governmental organizations had not completed the new registration procedure and had been shut down. Citizens were entitled to renew the activities of previous non-governmental organizations.

Belarus strived to eradicate statelessness. The number of stateless women in Belarus had significantly decreased by around 5,000 persons over the past 10 years, thanks to the work of authorities in collaboration with United Nations bodies. The State supported stateless persons and their children to apply for Belarussian citizenship. It was continuing work towards ratification of the United Nations conventions on statelessness. The Government had not received reports of unlawful treatment of stateless persons. Stateless persons in Belarus were primarily citizens of the former Soviet Union. Their numbers were low; the number of stateless children was less than 10. To receive citizenship, people needed to demonstrate that they had sufficient income and had not committed offences.

Questions by a Committee Expert

A Committee Expert said Belarus had near universal enrolment of girls and boys in primary education. Educational instructions could reproduce harmful tropes of men as breadwinners and women as caregivers. What measures were in place to enforce the role of men as caregivers? Only 23 per cent of persons in science, technology, engineering and maths education were women. What measures were in place to promote their participation? Only 17 per cent of university professors were female. How would this be addressed? Many students had been arrested and prosecuted for their engagement in protest movements. Nine of the 11 students detained were women, including a woman professor. What was the status of these women?

Responses by the Delegation

The delegation said traditional values in Belarus promoted families with children. Many educational programmes aimed to uphold traditional values and promote gender equality and the equal roles of men and women. Around 52 per cent of higher education students were women. Around 40 per cent of workers in the information technology sphere were women. The Government was implementing incentives and other measures to attract girls to science, technology, engineering and maths careers.

Students were detained on the grounds that they had broken a criminal law. There was no persecution of students simply for exercising freedom of expression.

Questions by a Committee Expert

One Committee Expert said the employment rate of men was 72 per cent compared to 63 per cent for women. Although the list of closed professions for women had been reduced significantly, significant barriers for women accessing the labour market remained, and the list itself was a form of discrimination. Women were underrepresented in higher-paid industries. Workplace harassment remained common and legislation did not provide adequate remedies for victims and penalties for perpetrators. Detained women were legally required to engage in labour; this was a form of modern slavery. In July 2022, all independent trade unions were banned in Belarus. What protection mechanisms were available related to workplace sexual harassment? Was there a national action plan for addressing the gender pay gap? When would the State party abolish forced labour for prisoners?

In 2017, the State introduced pension reform, raising the retirement age. Many citizens had lost their pensions due to the reforms. Why did men and women have different pension ages?

Responses by the Delegation

The delegation said the rate of employment for women from 15 to 74 was 63 per cent, whereas the employment rate for women of working age was above 80 per cent. Belarus promoted equal pay for work of equal value. Overall, women earned around 75 per cent of what men earned. In the transport sector and the agricultural sector, wage gaps were much lower. The State party was implementing measures to reduce the gender pay gap. Women were now able to work in professions that were previously not accessible, such as truck drivers. The State party was encouraging men to take parental leave. Women who experienced workplace harassment could report the incident to local authorities and receive remedies.

The Supreme Court had ruled that trade unions were to be closed when their activities were harmful to public interests or State values. The federation of trade unions covered almost all unions in the country. It promoted general and collective agreements, which provided additional social and labour rights for workers.

Women earned 92.5 per cent of the pension earned by men. Less than one per cent of the elderly were poor. Women could continue working after they reached pension age; around 20 per cent of women did so. The Presidential Decree on Employment did not punish individuals who were not working. Under the decree, women who were not working had the right to access State subsidies.

The State party was exerting efforts to address the gender pay gap. The national action plan on gender equality, which was based on the Committee’s previous recommendations, introduced measures to support female entrepreneurs and workers.

Questions by a Committee Expert

A Committee Expert said there had been significant advances in the field of public health in Belarus in recent years, but access to medicines was better in cities than in rural areas, and the quality of healthcare had declined nation-wide. How was the State party supporting equal access to affordable healthcare for women from vulnerable groups? What measures were in place to remove obstacles to accessing abortions? Did both men and women need to undergo cancer screenings before they could obtain a driver’s licence?

Women with disabilities faced barriers in accessing sexual and reproductive health services. How was the State party meeting the needs of women with disabilities in this regard? Some women with disabilities had been pressured to hand over their children to the State. How would the State party address the discrimination faced by women with disabilities? How did the delegation respond to reports of sterilisation of women with disabilities?

Women with HIV reportedly faced systematic discrimination in health care. The Penal Code sanctioned the transmission of HIV regardless of the circumstances. What measures were in place to support women with HIV? What was the situation of sexual and reproductive health education?

Responses by the Delegation

The delegation said that in Belarus, medical assistance for persons with HIV was provided in line with health protocols from 2018 and 2022. In 2018, Belarus had been certified as being free from mother-to-child transmission of HIV. There were around 27,000 HIV positive people in the State. The State party worked closely with non-governmental organizations to provide treatment for HIV positive people. Around 95 per cent of HIV positive people were receiving retroviral treatment. Women formerly had to present certificates from gynaecologists to receive a driver’s licence; as of last year, this was no longer necessary. A draft law had been developed to decriminalise unintentional transmission of HIV. Penalties for the deliberate transmission of HIV would remain.

The protection of maternal and child health was a priority for the State. Women who sought abortions could receive free counselling. Over five years, these counselling sessions had prevented 23,000 abortions. Pregnancies were interrupted only when the pregnant woman provided permission.

All women, including women with disabilities, had access to medical assistance without discrimination. Resources were set aside to allow for high quality medical care of the population.

The World Health Organization had highly rated the medical care provided in Belarus. The assessment that the quality of medical care had declined in recent years was not in line with reality. Mobile health clinics provided in-home medical care in rural areas. The State party was addressing shortages in healthcare staff. It had difficulties in accessing certain types of medications due to sanctions from Western countries.

Questions by Committee Experts

A Committee Expert commended measures reforming regulations on universal social protection and access to support funds for entrepreneurs. Were there schemes guiding social protection for workers in the informal sector? What steps had been taken to incorporate gender considerations into the tax regime? What percentage of business grants were received by female entrepreneurs over the past five years? How had technological training helped to bridge gender gaps in digital fields? How was the State party strengthening women’s role in sports and cultural activities and addressing stereotypes related to sports and culture?

Another Committee Expert congratulated Belarus on co-sponsoring the United Nations Convention against Cybercrime and for implementing measures to protect elder women in digital spheres. What social security and economic policies were in place for elderly women? Belarus had a high number of criminal cases related to HIV. Transmission of HIV was penalised with imprisonment of up to five years. Was the State party rethinking this law?

Women with disabilities’ right to work could only be realised after a medical examination. How would the State party allow for the full realisation of these women’s right to work?

Women in prisons were reportedly denied access to menstrual products. How would the State party ensure that all detained women were treated in a dignified manner? Belarus had in 2022 broadened its definition of pornography to include non-traditional relationships. How would this affect the lesbian, bisexual, transgender and queer community? Were the rights of indigenous women considered in plans to develop a second nuclear powerplant in the State?

Responses by the Delegation

The delegation said there were around 400,000 people engaged in entrepreneurship in Belarus, 40 per cent of whom were women. There was a framework for supporting women entrepreneurs, including in rural areas, and norms and laws aimed to support small businesses. Special taxation measures were provided to women entrepreneurs. The share of women entrepreneurs had increased by around 10 per cent in recent years. A State support programme for the unemployed had been established; almost half of all beneficiaries were women.

In 2023, nine women had been penalised for transmitting HIV and 12 women were penalised in 2022. The State party was continuing to reduce the stringency of HIV legislation.

There was a Government mechanism which visited prisons regularly to examine living conditions. The Attorney-General also monitored compliance with legislation on prisons. Access to all forms of medical care was granted to detainees. All detainees could file complaints to courts related to the lawfulness of their detention as well as other problems. Prisoners who violated prison regimes were placed in solitary confinement.

The State party had a plan for implementing the Convention on the Rights of Persons with Disabilities. It supported employers who hired persons with disabilities and provided training to help persons with disabilities access work. An act on quotas for persons with disabilities in the workplace had been implemented.

Legislative changes addressed the circulation of products that harmed public morality. They were not expected to have an impact on the lesbian, bisexual, transgender and intersex community. People could choose the type of relationship they had.

The impact on human health of the State’s nuclear power plants was negligible. Belarus upheld the highest standards of safety.

Women were being encouraged to participate in sports traditionally favoured by men.

Questions by a Committee Expert

ELGUN SAFAROV, Committee Expert and Rapporteur for Belarus, asked if the State party had statistics on the amount of property inherited by women. How did courts protect women’s property rights in divorce proceedings? How were children’s rights protected in international adoption proceedings? The dialogue and the Committee’s recommendations would help with protecting the rights of women in Belarus.

Responses by the Delegation

The delegation said Belarus’ legislation on divorce promoted the best interests of the child. Mediation was increasingly used in custody cases. The interests of the mother and father were duly protected. Belarus worked with several States on regulating international adoptions. The State party monitored families who had adopted Belarussian children to ensure that their rights were upheld.

Concluding Remarks

LARYSA BELSKAYA, Permanent Representative of Belarus to the United Nations Office at Geneva and head of the delegation, thanked the Committee for the dialogue. Belarus had achieved much in terms of gender equality and empowering women. The discussion helped the State party to identify the remaining issues to be addressed. The Belarussian population supported the State’s measures, but there was more to be done. The Committee’s recommendations would be carefully considered by the National Council on Gender Equality and used to construct the next national action plan on gender equality

NAHLA HAIDAR, Committee Chair, thanked the delegation for its engagement with the Committee. The dialogue had provided insights into the achievements made in Belarus and the areas in which further progress was needed. The Committee commended the State party for its efforts and encouraged it to implement the Committee’s recommendations for the benefit of all women and girls in Belarus.

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

CEDAW25.004E

MIL OSI United Nations News –

February 7, 2025
MIL-OSI Russia: Financial news: 06.02.2025, 18-26 (Moscow time) the values of the upper limit of the price corridor and the range of market risk assessment for the RU000A0JWHU2 security (RZhD BO-17) were changed.

Translartion. Region: Russians Fedetion –

Source: Moscow Exchange – Moscow Exchange –

06.02.2025

18:26

In accordance with the Methodology for determining the risk parameters of the stock market and deposit market of Moscow Exchange PJSC by NCO NCC (JSC), on 06.02.2025, 18-26 (Moscow time), the values of the upper limit of the price corridor (up to 79.5) and the range of market risk assessment (up to 884.7 rubles, equivalent to a rate of 22.5%) of the RU000A0JWHU2 security (RZhD BO-17) were changed.

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.

Please Note; This Information is Raw Content Directly from the Information Source. It is account to What the Source Is Stating and Does Not Reflect the Position of Mil-Sosi or Its Clients.

HTTPS: //VVV. MOEX.K.M.M.

MIL OSI Russia News –

February 7, 2025
MIL-OSI Russia: Financial news: Ruble strengthened in December-January, shares of all sectors grew

Translartion. Region: Russians Fedetion –

Source: Central Bank of Russia –

In December-January, the ruble rose against the US dollar by 9%, despite the growth of the American currency on the world market. The strengthening of the ruble occurred against the backdrop of adaptation to the new structure of foreign trade settlements after the sanctions imposed on Russian banks in November.

At the end of 2024, the trend on the stock market changed: the decline in the Moscow Exchange Index observed in the second half of the year stopped. According to the results of December-January, its growth was 14.4%. At the same time, the volatility of the stock market decreased: the RVI index fell from 55.6 points at the beginning of December to 34.3 points at the end of January. OFZ yields began to decline after the December decision of the Bank of Russia to keep the key rate at 21%.

Last year, gold in rubles rose in price by almost 45%, demonstrating the highest yield among Russian market instruments. Against the backdrop of high interest rates, money market funds and deposits, both in rubles and foreign currency, also showed yields higher than inflation.

In January, the situation changed: the most profitable investments were shares of construction companies, which recouped last year’s decline. Gold and ruble deposits continued to yield above inflation, while deposits in US dollars and euros showed negative returns against the backdrop of the strengthening of the Russian currency.

Read more in the next issue “Review of Financial Market Risks”.

Preview photo: leungchopan / Shutterstock / Fotodom

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.

Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

HTTPS: //vv. KBR.ru/Press/Event/? ID = 23352

MIL OSI Russia News –

February 7, 2025
MIL-Evening Report: The transformation of Jordan Mailata: from rugby league in Sydney to a second NFL Super Bowl

Source: The Conversation (Au and NZ) – By Justin Keogh, Associate Dean of Research, Faculty of Health Sciences and Medicine, Bond University

Jordan Mailata is an Australian-born NFL star who plays for the Philadelphia Eagles as an offensive left tackle. This position favours very tall, heavy and strong athletes who also possess good footwork, agility and tactical awareness.

His main job is to protect his quarterback and provide gaps for his running backs to run through.

Mailata is one of four Australians to play in a Super Bowl, with the others being punters (kickers) Ben Graham, Arryn Siposs and Mitch Wishnowsky.

Unfortunately, no Australian has won the game that matters most every year but Mailata has a chance in his second Super Bowl, against the Kansas City Chiefs on Monday morning.

So, how did Mailata reach the pinnacle of his “new” sport?

Read more:
It’s the most American of sports, so why is the NFL looking to Melbourne for international games?

A rugby league giant

Mailata’s initial sporting success came in rugby league.

He played in the Canterbury Bankstown Bulldogs under-18 team and was offered a contract by the South Sydney Rabbitohs under-20 team. Both of these clubs are part of the elite National Rugby League (NRL) competition.

Mailata, who still hadn’t reached his 21st birthday when offered the Rabbitohs contract, stood out as a giant even in professional rugby league circles at 203cm and 147 kilograms.

But after fainting during a rugby league training session, he was diagnosed with a heart condition that required surgery. He then became even bigger, reportedly tipping the scales at close to 170kg.

Ultimately, this resulted in some of the South Sydney staff and sport agents suggesting American football might be a better option for someone of his stature and physical capacities.

Tranasferring his talent

This brings us to what is known as “talent transfer”.

In high-performance sport, talent transfer refers to a high-level athlete from one sport transferring to another based on their existing skills and physical capacities.

This can be done for a number of reasons, like injury, burnout, loss of interest, or, in the case of Mailata, finding another sport that would suit their physicality better.

Examples of talent transfer include sprinting to bobsleigh (Jana Pittman), rowing to cycling (Bridie O’Donnell and Rebecca Romero) or Sonny Bill Williams, who was highly successful at rugby league, rugby union and heavyweight boxing.

For talent transfer to be successful, there needs to be a lot of similarities between the two sports in areas such as skill requirements (kicking, passing, tackling), physical traits (height, mass) and physiological demands (aerobic vs anaerobic).

These similarities can allow athletes to capitalise on their previous training to succeed in their new sport faster and to a higher level than their competitors.

The similarities between American football and rugby (league and union) – such as catching and kicking an oval-shaped ball, evading or running through defenders and full-body tackling – would have benefited a mature athlete like Mailata to transfer from one code to another.

A whole new ball game

His transition from a monster-sized rugby league player in Australia to a more regular-sized offensive tackle in the NFL was initially facilitated through the NFL International Player Pathway (IPP) program.

The IPP was established in 2017 to provide high performance adult athletes from all over the world (like Mailata) the opportunity to learn the complexities of American football and increase the number of international players in the NFL.

The program has been highly successful, with 37 international players signing with NFL teams, of which 18 are currently on NFL rosters.

When Mailata was drafted to the NFL in 2018, he had to work on many aspects of his body to meet the physical challenges of playing in the NFL against other exceptionally massive and strong athletes.

He also had to learn a range of sport-specific technical and tactical skills.

As a part of the IPP, he started working with coaches including Jeff Stoutland, the Philadelphia Eagles offensive line coach.

Stoutland took Mailata into the classroom, teaching him the intricacies of offensive line play including protection and run schemes. These lessons extended into what footwork patterns he would need to master, where and how to position his body when initiating contact and how to use his hands to control the defensive line.

Such skills are the bread and butter of the offensive line – these athletes provide the quarterback time to make key passing decisions and increase the chance of their running backs making big yards on their carries.

Mailata has also mentioned how Strickland taught him the importance of critically watching NFL games, initially to learn the technicalities of the sport and now to further refine his performance against the best defensive lines.

The next wave

In addition to the IPP that looks at talent transfer from adult athletes, the NFL has developed the NFL Academy for school-aged children.

The first academy was based at Loughborough University in the United Kingdom and the second was developed at A.B. Patterson College on the Gold Coast.

These academies combine full-time education with intensive American football training in the hope of promoting pathway opportunities at US colleges.

Hopefully, these academies will see more young Australians transferring their skills and following Mailata into the NFL.

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. The transformation of Jordan Mailata: from rugby league in Sydney to a second NFL Super Bowl – https://theconversation.com/the-transformation-of-jordan-mailata-from-rugby-league-in-sydney-to-a-second-nfl-super-bowl-248658

MIL OSI Analysis – EveningReport.nz –

February 7, 2025
MIL-OSI Asia-Pac: Fiscal Prudence and Frugality Must Never Compromise Operational Efficiency, Says Vice-President

Source: Government of India (2)

Fiscal Prudence and Frugality Must Never Compromise Operational Efficiency, Says Vice-President

Being in Service of Bharat, Home to One-Sixth of Humanity, Is a Blessing, Says VP

Never Create Hurdles in Pension Disbursement; Have Absolute Empathy for Veterans, Says VP

Lawful Route of Integrity Is the Safest Route, Says VP

Security Is Best Assured From a Position of Strength, and Strength Is Secured By Preparation, Highlights VP

Vice President Addresses Indian Defence Accounts Service (IDAS) Probationers of 2022 and 2023 Batches

Posted On: 06 FEB 2025 8:53PM by PIB Delhi

The Vice-President of India, Shri Jagdeep Dhankhar today addressed the Indian Defence Accounts Service (IDAS) probationers of the 2022 and 2023 batches in New Delhi, saying, ““I strongly advocate that there must be meticulous, scrupulous adherence to fiscal prudence, frugality but this should not come at the cost or compromising efficiency and efficiency lies in the fiscal utilisation of resources. Financial integrity is absolute essence; it is your nectar. Financial integrity once compromised you lose it forever; you can never repair and therefore, develop a mechanism in life of happiness and satisfaction that do not measure yourself comparing those who are in private sector. You are an ancient guardian of economic discipline.”

Shri Jagdeep Dhankhar further said, “Being in service of Bharat, home to one-sixth of humanity, is a blessing. You may have, on account of your credentials, the occasion to serve in several other areas, and maybe perhaps with larger fiscal gain, but you shall never have the satisfaction that you will have now. Satisfaction to live up to our civilizational ethos of service, satisfaction to nurture our nationalism, satisfaction to serve our motherland, and satisfaction to serve in conditions that is envy of everyone.”

Being in the service of Bharat, home to one-sixth of humanity, is a blessing.

You may, on account of your credentials, have the opportunity to serve in several other areas—perhaps with greater fiscal gain—but you will never experience the same satisfaction that you do now.

The… pic.twitter.com/03X5UT9AYt

— Vice-President of India (@VPIndia) February 6, 2025

Addressing the need for respect and care for veterans, Shri Dhankhar stated, “For example, it is historical fact established, the morale of the armed forces is determined by the care we have for our veterans. If veterans are in good morale, those who serve on the frontiers or otherwise look up. And you have a deep connect with the veterans, pensioners. You will have to have absolute empathy for pensioners. Never ever create a problem in disbursement of the pension. I am so happy and delighted and I came to know about it that technological upgradation has resulted in seamless delivery with expedition. But still, there will be issues and issues are bound to be there. We will never have a system where there will be no issues interdepartmental or with pensioners. Have empathy.”

It is an established fact that the morale of the armed forces is determined by the care we have for our veterans.

You have a deep connect with the #veterans, the pensioners. They are not the people who are retired. They will never tire of serving the nation.

This blessed,… pic.twitter.com/MSLmvmm6aa

— Vice-President of India (@VPIndia) February 6, 2025

He further urged officials to treat pensioners with respect and devotion, remarking, “Act with them with a sense of devotion. All of them are like parents for you, senior citizens, our veterans. Hand-holding them, if they physically interface with you, will go a long way. Not only they will bless you, by word of mouth, a message will permeate all throughout. They are not the people who are retired. They are pensioners. They will never be tired of serving the nation in whatever form they are. This blessed, distinguished, premium category of human resource you will be interacting with.”

Speaking on financial discipline, the Vice-President cautioned against shortcuts and urged adherence to integrity. “There will always be challenges, but I can assure you lawful route of integrity is the safest route. Shortcuts are very tempting; sometimes, they are too tempting to be resisted but when challenges come, a shortcut, rather than being the shortest distance between two points, turns out to be the longest, intractable with headwinds and air pockets. Sometimes, negotiating is never-ending.”

Reflecting on the global security scenario, the Vice-President stressed that preparedness is paramount, given the challenges in the region and ongoing global conflicts. “Given the security clime in our neighborhood, given the challenges we have, and given the challenges that we are living in times where conflagration in any part of the globe—Ukraine-Russia, Israel-Hamas—we were impeccable, and therefore, the level of preparation now has become much beyond what you may be having in your mind. The good thing is that our nation is getting prepared.”

He further emphasized the importance of security from a position of strength, stating, “Security of any nation is fundamental. It is said security is best assured from a position of strength. And position of strength is secured by level of preparation. And preparation these days, you have to be ahead of times. You have to think of next-gen equipment in every field. And now the situation is so dramatically changed that conventional warfare has taken back seat.”

Highlighting the responsibilities of public servants, the Vice-President urged them to put the nation first. “While I would say always keep the nation first, have unwavering commitment to the nation, but this cannot be just an idea. While it is your ordainment by virtue of being public servants to ensure fiscal discipline, enabling operational efficiency, you also have to look around what as individuals you can do.”

The Vice-President also stressed the need for strengthening family ties, promoting indigenous knowledge, and fostering inclusivity. “One, strengthening of family ties, family values. Be connected with family. Make it a priority. Believe in environmental awareness and sustainable living. As individuals, you can contribute for it. Embrace indigenous knowledge, economic self-alliance. Be Vocal for Local. I’ll tell you, avoidable imports in this country are a huge drain on finance, to the extent of billions of dollars. And these avoidable imports are in the shape of shoes, socks, trousers, coat, shirts, carpets, furniture, toys, candles, what not. Second aspect is that when we engage into use of avoidable foreign items imported in the country, we are depriving our people of work. This small gesture you can do.”

We must focus on fostering unity and inclusivity amidst great diversity.

For 5,000 years we have had inclusivity, but the challenge to inclusivity was extreme.

Invaders came; they ravaged our culture and our religious places, but we stood our ground.

Time has come now to… pic.twitter.com/fcqkCO9smU

— Vice-President of India (@VPIndia) February 6, 2025

He concluded by emphasizing national unity and resilience, saying, “Foster unity and inclusivity amidst mass diversity. For 5,000 years we have had inclusivity, but the challenge to inclusivity was extreme. Murderers came, invaders came. They ravaged our culture, our religious places. We stood our ground. But time has come now to keep nation’s interest always first, fostering unity, fostering brotherhood.”

Shri Rajesh Kumar Singh, IAS, Defence Secretary, Smt. Devika Raghuvanshi, IDAS, Controller General of Defence Accounts (CGDA), Dr. Vandana Kumar, Additional Secretary, Rajya Sabha Secretariat and other dignitaries were also present on the occasion.

*****

JK/RC/SM

(Release ID: 2100484) Visitor Counter : 47

MIL OSI Asia Pacific News –

February 7, 2025
MIL-OSI Asia-Pac: Text of the Vice President’s address to the IDAS Probationers of 2022 and 2023 Batches (Excerpts)

Source: Government of India

To be in service of the largest democracy, home to one-sixth of humanity, is divine intervention in your lives.

You are required to handhold rather than generate handicaps. It is very easy to find a lapse, it is very easy to pick up. This procedure requirement has not been thorough, but if your attitude is to see things really at fast track, you must have a solution in mind, and primarily, the solution is immediate hand holding. Things will be amazing.

Let me tell you, being in service of Bharat, home to one-sixth of humanity, is a blessing. You may have on account of your credentials occasion to serve in several other areas, and maybe perhaps with larger fiscal gain, but you shall never have the satisfaction that you will have now. Satisfaction to live up to our civilizational ethos of service, satisfaction to nurture our nationalism, satisfaction to serve our motherland, and satisfaction to serve in conditions that is envy of everyone.

All your life you will be in close contact with nature because defence estates are bountiful, gifted by nature.

Second, you will be living and dealing with a community that is in uniform by and large. You will be dealing with people who are taken to uniform with a resolve to serve the motherland at the cost of making supreme sacrifice. Security of any nation is fundamental. It is said, security is best assured from a position of strength and position of strength is secured by level of preparation and preparation these days, you have to be ahead of times.

You have to think of next-gen equipment in every field and now the situation is so dramatically changed that conventional warfare has taken back seat.

You will have to deal with many strategic challenges generated also by disruptive technologies. Therefore, you will have to keep on learning while your training is well made out, your exposure is remarkable but much of it you will have to self-learn also. Learning never stops but in your service particularly, you have to be always learning because there is paradigm shift when it comes to auditing, budgeting, account handling, effective transparency, accountability.

If you get into a groove and get obsessed, only to find procedural lapses as indicated by the Defence Secretary and do not have a solution in mind. You cannot imagine the kind of damage we make. Of course, it will have cascading impact, a deleterious impact on our preparedness.

You are an ancient guardian of economic discipline. I strongly advocate that there must be meticulous, scrupulous adherence to fiscal prudence, frugality but this should not come at the cost or compromising efficiency and efficiency lies the fiscal utilisation of resources. When resources are allocated and in your case the allocation is indeed 13% to 14% of the budget. If you delay it the Nation suffers.

Given the security clime in our neighborhood, given the challenges we have, and given the challenges that we are living in times where conflagration in any part of the globe, Ukraine-Russia, Israel-Hamas, we were impeccable, and therefore, the level of preparation now has become much beyond what you may be having in your mind.

Good thing is that our nation is getting prepared. It started after a long time with acquisition of Rafale, but now things are on track, backlog is being made up. The Defence Secretary is seat of the matter, so is the CDS and the three Chiefs, but your mindset will be determinative.

While I would say always keep the nation first, have unwavering commitment to the nation, but this cannot be just an idea. You have to fructify that idea day in and day out. If you look around, while it is your ordainment by virtue of being public servants to ensure fiscal discipline, enabling operational efficiency, you also have to look around what as individuals you can do. For example, it is said and it is historical fact established, the morale of the armed forces is determined by the care we have for our veterans. If veterans are in good morale, those who serve on the frontiers or otherwise look up.

You have a deep connect with the veterans, pensioners. There are two connects that you have and I feel very emotively about it because I come from a place called Chittorgarh. I couldn’t get into the uniform on account of my right eye not being well. So, as Rajya Sabha Chairman, I mostly look to the government on the right side, but my heart is on the left side, where the opposition is there. So, you will have to have absolute empathy for pensioners. Never ever create a problem in disbursement of the pension.

I am so happy and delighted and I came to know about it that technological upgradation has resulted in seamless delivery with expedition but still there will be issues and issues are bound to be there. We will never have a system where there will be no issues interdepartmental or with pensioners.

Have empathy, act with them with a sense of devotion. All of them are like parents for you, senior citizens, our veterans. hand-hold them, if they physically interface with you, will go a long way. Not only they will bless you, by word of mouth, a message will permeate all throughout. They are not the people who are retired, they are pensioners. They will never be tired of serving the nation in whatever form they are. This blessed, distinguished, premium category of human resource you will be interacting with.

No one has fancy for people who deal with finance. No one is in love with the auditors. There is an element of fear sometimes but now the mindset must change because Integrity has been generated by and large on account of technology. Much has been plugged in the entire system, most of yours but I would particularly urge, while auditing others, never hesitate to self-audit.

As young boys and girls, you must exemplify by conduct, discipline and decorum, that not only you are different, you are cut out to make a difference and that difference would add up to the nation being different.

There will always be challenges, but I can assure you, law full route of integrity is the safest route. Shortcuts are very tempting; sometimes, they are too tempting to be resisted but when challenges comes, a shortcut, rather than being the shortest distance between two points, turns out to be the longest intractable with headwinds and air pockets. Sometimes, negotiating is never-ending.

Therefore, financial integrity is absolute essence; it is your nectar. Financial integrity once compromised, you lose it forever; you can never repair and therefore, develop a mechanism in life of happiness and satisfaction that do not measure yourself comparing those who are in private sector. The limousine may also look, very attractive to you but if you get into their role you will find your life is much happier more rewarding more satisfying.

The best answer is, ‘I don’t know.’ Never guess, Never fear failure. Never fear that you have lack of knowledge, no one is encyclopedic. There will be people who will tell you, yes, you are nice boy, nice girl. You don’t know, but you are urge to live. You have the courage and conviction to say, I am not ready at the moment, give me a day’s time. Maybe the superior, may at that point of time will not appreciate. But to cover up that fault by something which cannot be tenable. You must not adopt.

As individuals, I will invite you that you must be good citizens of the country while people in our country focus on rights and we have fundamental rights, I would beseech all of you to first carefully go through fundamental duties that are in part 4A of the Constitution. Many people ask me, what individuals can we do? I will here give you some tips.

One, if the Prime Minister initiated a clarion call for ‘Ek Ped Maa ke Naam’, imagine the difference it is making. If everyone takes it seriously, and I include everyone, including a child, then there would be saplings of 1.4 billion. You will be living in a state where you can make your difference. Please do that.

I would want you to take note, get imbibe and practice five civilizational values.

One, strengthening of family ties, family values. Being connected with a family. दादा-दादी, नाना-नानी को जब पता लगता है की उनको फ़ोन कर दिया, उनसे बात हो गई| उनको जीवन के अंदर आनंद लेने का एक पल मिल जाता है|

Make it a priority, believe in environmental awareness and sustainable living. These are not words. As individuals you can contribute for it. Embrace indigenous knowledge, स्वेदेशी, economic self-alliance. Be Vocal for Local. I’ll tell you, avoidable imports in this country are huge drain on finance, to the extent of billions of dollars. These avoidable imports are in the shape of shoes, socks, trousers, coat, shirts, carpets, furniture, toys, candles, what not.

Second aspect is that when we engage into use of avoidable foreign items imported into the country, we are depriving our people of work. This small gesture you can do. I’ll be Vocal for Local; I’ll go for indigenous product when it comes for my use. State actors can’t do it. You are a discerning young mind. WTO will come into play. It is very difficult to evolve a policy for that. But if people take to a policy by their habit, a designed habit, inculcated habit, it will make a difference.

Forged in unity and inclusivity amidst mass diversity. For 5,000 years we have had inclusivity, we have had inclusivity, but the challenge to inclusivity was extreme.

Murderers came, invaders came. They ravaged our culture, our religious places. We stood our ground but time has come now to keep nation’s interest always first, fostering unity, foster the brotherhood, and that is required because if you find someone not subscribing to our values, not believing in the nation. You must have capacity to effect change of mindset, and if not, make your presence felt. The nation first has to be there.

Everyone has civic duties to perform. I have noticed myself, no Indian who left India for abroad, threw a banana skin out of a running vehicle. No one has done it, and landing here back, सड़क तो हमारी है, हमारा garbage है, फेकेंगे but Prime Minister gave a call Swachh Bharat.

Now people don’t do it. Look at it. If we become a disciplined nation, things will be different. You youngsters must know our history. You are lucky to be living at a time when India is the fastest growing economy in the world. No nation has witnessed the kind of exponential economic upsurge, infrastructure growth, deep digitization, technological penetration, and facilities unheard of in the villages. Cooking gas, toilet, internet, road connectivity. Light in the house, pipe water is on the way, no one thought of it. So we are a nation full of hope and possibility.

In that nation you have the privileged honour to be public servants, but comes along with this another challenge that the nation is most aspirational. People have tasted development. Therefore, your duty you must always ensure before you leave the office. There should be no avoidable pendency on your table. If you make it your Dharma, it will take you a long way.

The armed forces are counting on you, the future generations are counting on you. My best wishes for all your future endeavors and always be positive. Shed negativity in the process if you can spare time to read our scriptures, Vedas, Gita, Epics, Ramayan, Mahabharata. I am not getting religious, I am saying they define sublimity of secularism.

Thank you so much.

****

JK/RC/SM

MIL OSI Asia Pacific News –

February 7, 2025
MIL-OSI Asia-Pac: Under MeitY’s research initiatives, CDAC-Noida Sign Letter of Intent (LoI) with LeGO Group to boost indigenous electronics Toy industry ecosystem

Source: Government of India

Under MeitY’s research initiatives, CDAC-Noida Sign Letter of Intent (LoI) with LeGO Group to boost indigenous electronics Toy industry ecosystem

MeitY initiative to empower Young Engineers from SC/ST and NER Backgrounds in Toy Innovation

Young Indian Engineers to Receive Global Mentorship from LEGO India and CDAC-Noida

Posted On: 06 FEB 2025 7:49PM by PIB Delhi

CDAC-Noida a research organization of MeitY signed a Letter of Intent (LoI) with Creative Play Lab, a department of the LEGO Group under the project ‘Development of Electronics and IT-based Control and Automation Solutions for Consumer Electronic Goods (Toy Industry)’.

The project is a tailored made initiative of R&D group of the Ministry to foster the growth of the Indian electronic toys industry by developing prototypes and equipping young engineers, including from under-represented communities, with the skills needed to design such toys.

Under this MeitY initiative, young engineers were selected from across India from SC/ST and NER background and engaged in R&D activities for a year, getting hands-on experience in designing and developing electronic toys for first six months working and learning in the toy labs at C-DAC, Noida followed by a six-month training at industry to create toy prototypes based on industry needs.

To provide global exposure to the interns, LEGO India is joining hands with CDAC Noida supported by CPL to provide mentorship to 1-2 students per batch on their toy prototypes. The batch of students from India will get the opportunity to visit the LEGO Group’s headquarters in Billund, Denmark. CPL will share knowledge for the 3^rd Batch of young engineers through webinars, providing insights on CPL’s experimentation mindset, guidance on toy development and standards, and feedback on toy prototypes developed by the engineering students.

This event was held on February 6, 2025 at MeitY was graced by Shri Bhuvnesh Kumar, Additional Secretary, MeitY, Shri Abhishek Singh, Additional Secretary, MeitY, Ms. Sunita Verma, GC R&D, MeitY, Shri Vivek Khaneja, ED, CDAC-Noida, Ms. Colette Burke, Global Chief Commercial Officer LEGO Group, Denmark, Mr. Claus Kristensen, Senior Vice President APAC Market Group, Singapore and senior Officers from Ministry and Industry.

*****

Dharmendra Tewari/Kshitij Singha

(Release ID: 2100419) Visitor Counter : 30

MIL OSI Asia Pacific News –

February 7, 2025
MIL-OSI Asia-Pac: Shri Jayant Chaudhary inaugurates NSDC International Academy at Greater Noida

Source: Government of India (2)

Shri Jayant Chaudhary inaugurates NSDC International Academy at Greater Noida

The state-of-the-art facility to provide world-class skill development & training programmes

The academy to empower youth in foreign languages and prepare them for international career opportunities

Posted On: 06 FEB 2025 6:38PM by PIB Delhi

Shri Jayant Chaudhary, Minister of State (I/C), Ministry of Skill Development and Entrepreneurship (MSDE) and Minister of State, Ministry of Education inaugurated the NSDC International Academy at Greater Noida, Uttar Pradesh. The academy is a state-of-the-art facility designed to provide world-class skill development and training programmes.

The NSDC International Academy is a landmark initiative designed to bridge the gap between Indian youth and global employment opportunities. It will serve as a centre of excellence, offering specialized training programs aligned with the skill demands of countries like Germany, Japan, and Israel. Shri Chaudhary flagged off the departure of 11 candidates headed to Germany. He toured the NSDC International Academy, interacted with students about their life journeys, and offered them motivation and also experienced the AI and VR facilities, advanced labs present at the centre.

Delivering his address, Shri Jayant Chaudhary, mentioned, “We must recognize that young India is breaking barriers, moving beyond traditional career paths, and looking at new opportunities. Institutions like these are testament to this shift—equipping our youth with the skills, confidence, and global exposure they need to succeed. A great building and infrastructure are important, but the real strength of any institution is its people—the trainers, students, and programs that drive it. With our skilling budget increasing substantially, we are strengthening initiatives like this academy, ensuring young Indians get industry-relevant training, language skills, and cultural readiness. A Viksit Bharat by 2047 will be built by individuals ready to take on global challenges, and our job is to make sure they have the right support to get there.”

He added, “Prime Minister Shri Narendra Modi Ji is very passionate about skilling, and takes pride in what our ministry is achieving. Skill India programme and ITI rejuvenation programme, announced in the budget will have a huge impact, in increasing our capacity to skill our young people.”

This centre aims to empower individuals with the skills needed to thrive in today’s competitive global workforce. The academy specializes in internationally recognized language certifications, ensuring that candidates receive globally accepted qualifications. These include OSD and GOETHE certifications for German, JLPT for Japanese, and ISLETS for English, making graduates well-prepared for global opportunities.

Addressing the audience, Shri Ved Mani Tiwari, CEO, Nation Skill Development Corporation said, “In our journey of making India a global skill capital, today is a pivotal moment as our honorable minister Shri Jayant Chaudhary inaugurates this center, fulfilling the dreams of our honorable prime minister Shri Narendra Modi Ji. The World Economic Forum report says that in the next 25 years, 100 crore people would join the global workforce, with every third and fourth person being Indian. The coming years would ensure that India plays a dominant role in the global economy and contributes significantly to the dollar economy. Our initiatives at this center equip youths with world-class language proficiency and advanced technical skills, preparing them for careers in Germany, Japan, Israel, and the UK. With cutting-edge training in sectors like caregiving and with the support of Industry 4.0, we are readying our talent for global opportunities.”

With a target of training over 1,000 candidates annually, the NSDC International Academy is committed to addressing the demands of both local and international job markets. As part of its mission to enhance employability, the academy will provide placement assistance and establish partnerships with industry leaders to facilitate valuable interview opportunities for its graduates.

The NSDC International Academy in Greater Noida stands as a flagship initiative, of the National Skill Development Corporation (NSDC) under the Ministry of Skill Development & Entrepreneurship (MSDE), Government of India, dedicated to transforming India’s workforce by providing training and certifications recognised globally. This premier skill development institution offers specialised courses in various fields, including foreign languages, healthcare, employability skills, and aviation, ensuring that Indian youth are well-prepared for international career opportunities.

The facility features modern classrooms equipped with interactive technology and advanced labs focused on soft skills and language learning with resources that will enable hands-on training and practical application of the learnings. The academy also includes dedicated counselling rooms to provide career guidance and psychological support, fostering holistic development among students. With residential facilities accommodating up to 500 candidates, the NSDC International Academy offers an immersive learning environment that promotes both academic and personal growth.

With a target of training over 1,000 candidates annually, the NSDC International Academy is committed to addressing the demands of both local and international job markets. As part of its mission to enhance employability, the academy will provide placement assistance and establish partnerships with industry leaders to facilitate valuable interview opportunities for its graduates.

****

PSF

(Release ID: 2100397) Visitor Counter : 124

MIL OSI Asia Pacific News –

February 7, 2025
MIL-OSI Asia-Pac: Shri Jayant Chaudhary inaugurates NSDC International Academy

Source: Government of India

Shri Jayant Chaudhary inaugurates NSDC International Academy

The state-of-the-art facility to provide world-class skill development & training programmes

The academy to empower youth in foreign languages and prepare them for international career opportunities

Posted On: 06 FEB 2025 6:38PM by PIB Delhi

Shri Jayant Chaudhary, Minister of State (I/C), Ministry of Skill Development and Entrepreneurship (MSDE) and Minister of State, Ministry of Education inaugurated the NSDC International Academy, a state-of-the-art facility designed to provide world-class skill development and training programmes.

The NSDC International Academy is a landmark initiative designed to bridge the gap between Indian youth and global employment opportunities. It will serve as a centre of excellence, offering specialized training programs aligned with the skill demands of countries like Germany, Japan, and Israel. Shri Chaudhary flagged off the departure of 11 candidates headed to Germany. He toured the NSDC International Academy, interacted with students about their life journeys, and offered them motivation and also experienced the AI and VR facilities, advanced labs present at the centre.

Delivering his address, Shri Jayant Chaudhary, mentioned, “We must recognize that young India is breaking barriers, moving beyond traditional career paths, and looking at new opportunities. Institutions like these are testament to this shift—equipping our youth with the skills, confidence, and global exposure they need to succeed. A great building and infrastructure are important, but the real strength of any institution is its people—the trainers, students, and programs that drive it. With our skilling budget increasing substantially, we are strengthening initiatives like this academy, ensuring young Indians get industry-relevant training, language skills, and cultural readiness. A Viksit Bharat by 2047 will be built by individuals ready to take on global challenges, and our job is to make sure they have the right support to get there.”

He added, “Prime Minister Shri Narendra Modi Ji is very passionate about skilling, and takes pride in what our ministry is achieving. Skill India programme and ITI rejuvenation programme, announced in the budget will have a huge impact, in increasing our capacity to skill our young people.”

This centre aims to empower individuals with the skills needed to thrive in today’s competitive global workforce. The academy specializes in internationally recognized language certifications, ensuring that candidates receive globally accepted qualifications. These include OSD and GOETHE certifications for German, JLPT for Japanese, and ISLETS for English, making graduates well-prepared for global opportunities.

Addressing the audience, Shri Ved Mani Tiwari, CEO, Nation Skill Development Corporation said, “In our journey of making India a global skill capital, today is a pivotal moment as our honorable minister Shri Jayant Chaudhary inaugurates this center, fulfilling the dreams of our honorable prime minister Shri Narendra Modi Ji. The World Economic Forum report says that in the next 25 years, 100 crore people would join the global workforce, with every third and fourth person being Indian. The coming years would ensure that India plays a dominant role in the global economy and contributes significantly to the dollar economy. Our initiatives at this center equip youths with world-class language proficiency and advanced technical skills, preparing them for careers in Germany, Japan, Israel, and the UK. With cutting-edge training in sectors like caregiving and with the support of Industry 4.0, we are readying our talent for global opportunities.”

With a target of training over 1,000 candidates annually, the NSDC International Academy is committed to addressing the demands of both local and international job markets. As part of its mission to enhance employability, the academy will provide placement assistance and establish partnerships with industry leaders to facilitate valuable interview opportunities for its graduates.

The NSDC International Academy in Greater Noida stands as a flagship initiative, of the National Skill Development Corporation (NSDC) under the Ministry of Skill Development & Entrepreneurship (MSDE), Government of India, dedicated to transforming India’s workforce by providing training and certifications recognised globally. This premier skill development institution offers specialised courses in various fields, including foreign languages, healthcare, employability skills, and aviation, ensuring that Indian youth are well-prepared for international career opportunities.

The facility features modern classrooms equipped with interactive technology and advanced labs focused on soft skills and language learning with resources that will enable hands-on training and practical application of the learnings. The academy also includes dedicated counselling rooms to provide career guidance and psychological support, fostering holistic development among students. With residential facilities accommodating up to 500 candidates, the NSDC International Academy offers an immersive learning environment that promotes both academic and personal growth.

With a target of training over 1,000 candidates annually, the NSDC International Academy is committed to addressing the demands of both local and international job markets. As part of its mission to enhance employability, the academy will provide placement assistance and establish partnerships with industry leaders to facilitate valuable interview opportunities for its graduates.

****

PSF

(Release ID: 2100397) Visitor Counter : 56

MIL OSI Asia Pacific News –

February 7, 2025
MIL-OSI USA: Arrests of foreign nationals made in electronic benefit transfer card fraud scheme

Source: US Immigration and Customs Enforcement

LOS ANGELES — On Feb. 1 and 2, Homeland Security Investigations (HSI) Los Angeles’ El Camino Real (ECR) Financial Crimes Task Force, alongside the United States Secret Service, California Department of Social Services, United States Marshals Service, United States Attorney’s Office Central District of California, Los Angeles County District Attorney’s Office, Los Angeles Sheriff Department, Hermosa Beach Police Department, Baldwin Bark Park Police Department, Culver City Police Department, El Monte Police Department, Inglewood Police Department, Orange County District Attorney Office, and the U.S. Department of Agriculture – Office of Inspector General conducted a large-scale enforcement action at several locations throughout the greater Los Angeles area.

The goal of this operation was to arrest individuals perpetrating access device fraud through unauthorized cash withdrawals from victim Electronic Benefit Transfer (EBT) cards. This type of fraud victimizes recipients of government sponsored relief programs which are some of our most vulnerable members of the public. During previous operations targeting the same fraud type, the majority of individuals arrested were foreign nationals with no lawful presence in the United States.

In the past year, the California Department of Social Services has reported more than $100 million in stolen funds from California victims’ EBT cards. The majority of illicit cashouts in the past year occurred in Los Angeles County.

For violations of 18 United States Code § 1029 (Access Device Fraud), the ECR Task Force and partners arrested 11 foreign nationals, recovered over 300 cloned EBT cards, and recovered over $30,000 in cash during the two-day operation. One of the suspects in custody had been previously arrested by Romanian law enforcement for murder and aggravated murder in Romania. The suspects arrested were transported to the Federal Bureau of Prisons in Los Angeles for processing, to include identification and immigration status determination for suspects unable to be identified or presenting suspected fictitious identification documents.

Historically, this type of criminal activity has been widely perpetrated by elements of Romanian organized crime who have no legal status in the U.S. or are prior deportees.

Anyone with information regarding fraud related to government sponsored relief programs is encouraged to call the HSI Tip Line at 877-4-HSI-TIP.

Learn more about HSI’s mission to increase public safety in your community on X, formerly known as Twitter, at @HSILosAngeles.

MIL OSI USA News –

February 7, 2025
MIL-OSI Asia-Pac: 5th Joint Working Group meeting between MoD of India & Spain held in New Delhi

Source: Government of India

Posted On: 06 FEB 2025 5:26PM by PIB Delhi

The 5th Joint Working Group (JWG) meeting between the Ministry of Defence of India and Spain took place in New Delhi on February 06, 2025. The meeting was co-chaired by Joint Secretary, International Cooperation Shri Amitabh Prasad and Special Advisor on Defence Diplomacy to the Secretary General of Defence Policy Brigadier General Paulino Garcia Diego.

Both sides reviewed the ongoing bilateral defence cooperation activities and discussed the plan for multiple joint activities, including in the maritime domain. They agreed to focus on a closer collaboration in defence, particularly in technology and armament production areas.

The C295 Project with Airbus Spain and Tata Advanced Systems Limited, the first Make-in-India project in the defence aircraft sector, has encouraged more Indian and Spanish companies to collaborate with each other and explore options to work together in the aerospace domain.

****

SR/Savvy

(Release ID: 2100344) Visitor Counter : 66

MIL OSI Asia Pacific News –

February 7, 2025
MIL-OSI Europe: Answer to a written question – Decommissioning of diesel vehicles – E-002268/2024(ASW)
Source: European Parliament
1. As the case referred in the parliamentary question is still pending before the Court of Justice of the European Union (CJEU)[1], the Commission cannot comment on it. The Commission has not made any announcement in this context and does not intend to introduce changes with a retroactive effect that would introduce a burden on car manufacturers or disadvantage citizens that purchased their cars in good faith. Irrespective of the outcome of the CJEU Judgment, the Commission will ensure a proper follow-up with Member States.

2. The pending case that has given rise to preliminary ruling proceedings before the CJEU concerns a specific vehicle purchased by a citizen and compensation to that individual citizen. There is no indication from the CJEU that the case would have implications for the validity of the original emission type-approval for the vehicle type concerned and would require a recall of vehicles. Liability and damage compensation rules are applied on a case-by-case basis for individual vehicles concerned by a legal dispute.

[1] Joined cases C-251/23 and C-308/23, Mercedes-Benz Group e.a.
Last updated: 6 February 2025
MIL OSI Europe News –
February 7, 2025
MIL-OSI Europe: Answer to a written question – Stopping Erasmus+ funding for universities with links to Islamists – E-002428/2024(ASW)
Source: European Parliament
Since it was created in 2018, the Gaziantep University in Türkiye has been awarded a total amount of EUR 157 746 via three Erasmus+ grant agreements, for sending students to avail of learning abroad opportunities.

The Commission is politically committed and legally bound to ensure that no one receives EU funding if they are involved in criminal or unethical practices, terrorism-related offences, or in other activities incompatible with EU values.

The Financial Regulation recast[1] introduced an explicit ground under the early detection and exclusion system for excluding entities from receiving EU financial support, if they have engaged in activities contrary to the values on which the EU is founded[2], such as incitement to discrimination, hatred, or violence[3].

The Commission will immediately act on any evidence of such violations by specific entities, by taking adequate measures in line with the applicable legal framework, such as suspension of contract or payments, contract termination, recovery of funds, or even exclusion from EU financing.

Mechanisms framed by the EU Financial Regulation have been put in place to protect EU values, including by adding new provisions in the Erasmus+ documents and grant agreements.

The Commission will continue rigorous monitoring procedures through checks and follow-ups on compliance with EU values. This includes close collaboration with national agencies responsible for the implementation of actions under the Erasmus+ programme.

[1] https://op.europa.eu/en/publication-detail/-/publication/990fe2a6-8f52-11ef-a130-01aa75ed71a1/language-en

[2] These values are enshrined in Article 2 Treaty on European Union and the Charter of Fundamental Rights of the European Union.

[3] Article 138(1), point (c)(vi) of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast), OJ L 2024/2509, 26.9.2024.
Last updated: 6 February 2025
MIL OSI Europe News –
February 7, 2025
MIL-OSI Europe: Answer to a written question – Spain’s medium-term fiscal-structural plan – E-002161/2024(ASW)
Source: European Parliament

The submission of the Member States’ draft budgetary plans and their assessment by the Commission (as established by Regulation (EU) 473/2013) is an important element in the fiscal surveillance.

Member States submit their draft budgetary plan for the forthcoming year by 15 October[1] and the Commission provides an opinion by end-November[2].

Member States are invited to take into account, in the process of adopting their budget law, the Commission opinion on their draft budgetary plan[3].

It may however happen that a government is unable to table a draft budget in national parliament by the usual deadlines. In these cases, the submission should as a rule take place at least one month before the draft budget law is planned to be adopted by the national parliament, except where to do so would prove not feasible due to the country-specific parliamentary approval calendar.

In the latter case, the submission should still take place in time to allow the Commission to adopt an informed opinion on the plan and the Eurogroup to hold a proper discussion well before the budget law is planned to be adopted by the national parliament[4].

The Commission continuously monitors fiscal developments in Member States. It takes into account all fiscal developments and fiscal measures when it prepares and publishes its macroeconomic forecasts, including fiscal accounts.

The Commission confirms that, while it has already received the Spanish medium-term fiscal structural plan[5], it has not yet received a draft budgetary plan for 2025.

The Commission raises the attention of the Honourable Member that the said Recital 39 of Regulation 2024/1263 indicates that the Commission should, when providing its opinion on the draft budgetary plan, assess whether the draft budgetary plan is consistent with the expenditure path set by the Council Recommendation that endorses the medium-term fiscal structural plan.
- [1] Art 6(1) of Regulation (EU) 473/2013.
- [2] Art 7(1) of Regulation (EU) 473/2013.
- [3] Recital 21 of Regulation (EU) 473/2013.
- [4] Moreover, Regulation 473/2013 (Cf Art 4(3)) establishes that, while the budget for central government should be adopted by end-year, the Member States should have in place reversionary budget procedures to be applied if the budged is not adopted or fixed upon by 31 December.
- [5] https://economy-finance.ec.europa.eu/document/download/45e0463e-1216-459a-820a-c7eb9381f27d_es?filename=national_medium-term_fiscal-structural_plan_spain_es.pdf&prefLang=en
MIL OSI Europe News –
February 7, 2025
MIL-OSI Europe: Answer to a written question – EU measures on customs controls and duties for online purchases of low-cost and low-quality products from China – E-002053/2024(ASW)
Source: European Parliament

The large volume of parcels sent to EU consumers via e-commerce platforms from third countries presents challenges in ensuring compliance with EU consumer protection and product safety rules.

The Commission is committed to enhancing cooperation with Member States to enable customs and other authorities to better identify and remove unsafe or non-compliant products entering the Union.

On 17 May 2023, the Commission proposed a comprehensive Customs Reform package[1] to strengthen EU customs’ capacity to monitor goods, particularly e-commerce items.

This includes the creation of a new EU Customs Authority and an EU Customs Data Hub, which will centralise data to improve targeting of unsafe products.

The reform also eliminates customs duty exemptions for goods valued up to EUR 150 and designates platforms and sellers registered for the Import One Stop Shop as ‘deemed importers’, making them responsible for compliance.

Under the Digital Services Act (DSA)[2], t he Commission works with national authorities to enforce rules, focusing on very large online platforms and search engines (VLOPs and VLOSEs).

It has designated nine online marketplaces as VLOPs, including Zalando, Amazon, AliExpress, Shein and Temu and initiated formal proceedings against Temu (31 October 2024) for potential DSA breaches related to illegal products, addictive design, recommendation systems, and researcher data access, and against AliExpress (March 2024) for issues concerning illegal products and consumer protection, recommendation systems, and researcher data access.

In June and October 2024 Temu and Shein were also asked to provide further information to address concerns on content moderation, dark patterns, trader identification, and user wellbeing.

The Commission prioritises ensuring a level playing field through effective customs, tax, safety controls, and sustainability standards.

In line with its 2024-2029 political guidelines and Executive Vice-President for Tech Sovereignty, Security and Democracy’s mission letter, tackling challenges associated with e-commerce platforms remains a key focus, particularly through the enforcement of the new General Product Safety Regulation².
- [1] Proposal for a regulation of the European Parliament and of the Council establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013.
- [2] Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (Digital Services Act) that entered into application on 17 February 2024.
MIL OSI Europe News –
February 7, 2025

Trading venue (MIC Code)	Number of shares	Weighted average price / share, EUR*
XHEL	1,379,268	4.64
CEUX	–	–
BATE	–	–
AQEU	–	–
TQEX	–	–
Total	1,379,268	4.64

Category: Europe

A geopolitical fallout?

Beyond humanitarianism

Canada’s role in all this

Watch Kennedy’s comments here.

Watch Kennedy’s comments here.

Most olive and citrus trees are gone

In some areas, every greenhouse is gone

Agricultural attacks are unlawful

A rugby league giant

Tranasferring his talent

A whole new ball game

The next wave

Fiscal Prudence and Frugality Must Never Compromise Operational Efficiency, Says Vice-PresidentBeing in Service of Bharat, Home to One-Sixth of Humanity, Is a Blessing, Says VP

Under MeitY’s research initiatives, CDAC-Noida Sign Letter of Intent (LoI) with LeGO Group to boost indigenous electronics Toy industry ecosystemMeitY initiative to empower Young Engineers from SC/ST and NER Backgrounds in Toy Innovation

Shri Jayant Chaudhary inaugurates NSDC International Academy at Greater NoidaThe state-of-the-art facility to provide world-class skill development & training programmes

Shri Jayant Chaudhary inaugurates NSDC International AcademyThe state-of-the-art facility to provide world-class skill development & training programmes

Fiscal Prudence and Frugality Must Never Compromise Operational Efficiency, Says Vice-President

Being in Service of Bharat, Home to One-Sixth of Humanity, Is a Blessing, Says VP

Under MeitY’s research initiatives, CDAC-Noida Sign Letter of Intent (LoI) with LeGO Group to boost indigenous electronics Toy industry ecosystem

MeitY initiative to empower Young Engineers from SC/ST and NER Backgrounds in Toy Innovation

Shri Jayant Chaudhary inaugurates NSDC International Academy at Greater Noida

The state-of-the-art facility to provide world-class skill development & training programmes

Shri Jayant Chaudhary inaugurates NSDC International Academy

The state-of-the-art facility to provide world-class skill development & training programmes