Category: Finance

  • MIL-OSI: Robinhood Markets, Inc. to Present at the J.P. Morgan Global Technology, Media and Communications Conference on May 14, 2025

    Source: GlobeNewswire (MIL-OSI)

    MENLO PARK, Calif., May 07, 2025 (GLOBE NEWSWIRE) — Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced that it will be participating in the upcoming J.P. Morgan Global Technology, Media and Communications Conference on Wednesday, May 14, 2025.

    Robinhood Chief Brokerage Officer Steve Quirk is scheduled to present on Wednesday, May 14, 2025, at 9:20 AM ET / 6:20 AM PT. Interested parties may access a live audio webcast of the presentation by visiting investors.robinhood.com. Following the presentation, a recording will be available for replay for at least 90 days on the same website.

    About Robinhood

    Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, futures (which includes options on futures, swaps, and event contracts), and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver’s seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

    Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission’s (“SEC”) Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.

    “Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

    Contacts

    Investor Relations

    ir@robinhood.com

    Media

    press@robinhood.com

    The MIL Network

  • MIL-OSI: Texas Capital Announces Expansion of Corporate and Investment Banking Division

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, May 07, 2025 (GLOBE NEWSWIRE) — Texas Capital Securities, a subsidiary of Texas Capital Bancshares, Inc. (NASDAQ: TCBI), today announced a significant expansion of the services offered by its Corporate and Investment Bank. The additions to personnel and corresponding enhancements in capabilities build upon the firm’s existing industry-focused Corporate Banking expertise, with significant impact on the breadth and reach of the Investment Bank in advisory and capital markets services. With the addition of professionals across Investment Banking Coverage, Equity Sales and Trading, Equity Research and Corporate Access, Texas Capital has further solidified its status as the premier full-service financial services firm headquartered in Texas.

    “We continue to build product and industry expertise on a platform that values integrity, high-quality advice and delivering tangible results for our clients,” said Rob C. Holmes, Chairman, President & CEO. “Today’s announcement reflects our dedication to serving as the ‘first call’ for business owners, executives and public company Boards of Directors seeking financial services and solutions.”

    Adding to a deep bench of industry veterans and other newly hired personnel, Texas Capital’s key recent senior hires include:

    Capital Markets

    • Robert (Bob) Chen joined Texas Capital from Guggenheim Partners​ to lead the Capital Markets business, including leveraged finance, loan syndications, private capital, equity capital markets and financial sponsor coverage. He brings more than 30 years of experience leading leveraged finance teams across TMT, energy/power, consumer retail, telecom and FIG.
    • Holly Smyth joined Texas Capital from B. Riley Securities to serve as Co-Head of Private Capital, advising private and public companies on debt capital structures. She brings 25 years of experience in debt capital markets and verticals including industrials, healthcare, consumer and business services.

    Investment Banking Coverage

    • Jon Merriman joined Texas Capital from B. Riley Securities to lead Equities. He brings more than 35 years of experience to the role, most recently serving as Chief Business Officer focused on originating and executing transactions in equity capital markets and equities trading. He is a seasoned leader with deep experience in managing fast-growing organizations, having founded, grown and sold Merriman Holdings, Inc., a boutique investment banking platform.
    • Ryan Bernath joined Texas Capital from B. Riley Securities to lead Investment Banking sector coverage. He brings more than 25 years of experience to the role, most recently serving as a Senior Managing Director focused on executing a wide range of mergers and acquisitions and corporate finance transactions for large-cap, mid-cap and small-cap public companies. Prior to B. Riley, he was a senior investment banker at Barclays and Lehman Brothers.

    Equity Sales, Trading & Research

    • Matthew (Matt) Johnson joined Texas Capital from Performance Edge Partners to lead Equity Sales, Trading & Research. He brings more than 25 years of experience managing equity businesses for top investment banking institutions, including Barclays and Lehman Brothers. He has helped build and restructure top-tier equity businesses and led trading teams ranked number one in block trading and consistently in the top five in Institutional Investor surveys.
    • Alex Rygiel joined Texas Capital from B. Riley Securities to lead Equity Research. He brings more than 30 years of experience in equity research, sales and trading with Friedman, Billings, Ramsey & Co. and Donaldson Lufkin & Jenrette.
    • Deena Sullivan and Charles Moreau joined Texas Capital from Oppenheimer & Co. to co-lead Corporate Access. Each brings more than 20 years of experience facilitating impactful dialogue between public company clients and institutional investors, with prior roles encompassing sales, marketing, relationship management, corporate access, institutional equity sales and trading and equity capital markets.

    To facilitate connectivity between Texas Capital clients and key financial centers in the United States, Texas Capital Securities today announced its intention to open offices in Los Angeles and Chicago and to relocate its office in New York City. Sales and trading, including corporate credit, public finance and equity underwriting and other activities, will continue to be conducted from Texas Capital’s trading floor in Dallas, Texas.

    “Texas Capital is positioned to capitalize on our exceptional growth as we serve clients in Texas and beyond as a trusted advisor, intermediary and underwriter,” said Daniel Hoverman, Head of Corporate & Investment Banking. “Our ability to continue to attract market-leading talent, including to our Corporate and Investment Banking team, evidences our continued aspiration to be the dominant financial services firm in the state of Texas, while being relevant nationally and recognized internationally. The ongoing investments in our platform reflect our vision and dedication to facilitating the strategic ambitions and satisfying the increasingly sophisticated needs of our clients.”

    About Texas Capital Bancshares, Inc.
    Texas Capital Bancshares, Inc. (NASDAQ®: TCBI), a member of the Russell 2000® Index and the S&P MidCap 400®, is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities. All services are subject to applicable laws, regulations and service terms. Deposit and lending products and services are offered by TCB. For deposit products, member FDIC. For more information, please visit www.texascapital.com.

    Trading in securities and financial instruments, strategic advisory, and other investment banking activities are performed by TCBI Securities, Inc., doing business as Texas Capital Securities. TCBI Securities, Inc. is a member of FINRA and SIPC and has registered with the SEC, MSRB, and other state securities regulators as a broker dealer. TCBI Securities, Inc. is a subsidiary of Texas Capital Bancshares, Inc., and an affiliate of Texas Capital Bank. All investing involves risks, including the loss of principal. Past performance does not guarantee future results. Securities and other investment products offered by TCBI Securities, Inc. are not FDIC insured, may lose value and are not bank guaranteed.

    The MIL Network

  • MIL-OSI: Veeco Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Highlights:

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

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

    U.S. Dollars in millions, except per share data
                     
    GAAP Results   Q1 ’25   Q1 ’24
    Revenue   $ 167.3     $ 174.5  
    Net income   $ 11.9     $ 21.9  
    Diluted earnings per share   $ 0.20     $ 0.37  
    Non-GAAP Results   Q1 ’25   Q1 ’24
    Operating income   $ 24.3     $ 29.4  
    Net income   $ 22.2     $ 26.4  
    Diluted earnings per share   $ 0.37     $ 0.45  
                     

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

    Guidance and Outlook

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

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

    Conference Call Information

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

    About Veeco

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

    Forward-looking Statements

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

    financial tables attached-

    Veeco Contacts:

    Investors:       Anthony Pappone       (516) 500-8798       apappone@veeco.com
    Media:   Javier Banos   (516) 673-7328   jbanos@veeco.com
                 
    Veeco Instruments Inc. and Subsidiaries
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31,
      2025      2024
    Net sales $ 167,292     $ 174,484  
    Cost of sales   98,825       99,065  
    Gross profit   68,467       75,419  
    Operating expenses, net:          
    Research and development   28,514       29,642  
    Selling, general, and administrative   25,028       24,700  
    Amortization of intangible assets   821       1,891  
    Other operating expense (income), net   (44 )     (2,859 )
    Total operating expenses, net   54,319       53,374  
    Operating income   14,148       22,045  
    Interest income (expense), net   836       705  
    Income (loss) before income taxes   14,984       22,750  
    Income tax expense (benefit)   3,037       896  
    Net income $ 11,947     $ 21,854  
               
    Income per common share:          
    Basic $ 0.21     $ 0.39  
    Diluted $ 0.20     $ 0.37  
               
    Weighted average number of shares:          
    Basic   57,753       55,968  
    Diluted   60,234       60,764  
                   
    Veeco Instruments Inc. and Subsidiaries
    Condensed Consolidated Balance Sheets
    (in thousands)
     
      March 31,   December 31,
      2025      2024
      (unaudited)        
    Assets              
    Current assets:              
    Cash and cash equivalents $ 174,898     $ 145,595  
    Restricted cash   169       224  
    Short-term investments   178,395       198,719  
    Accounts receivable, net   114,368       96,834  
    Contract assets   33,586       37,109  
    Inventories   254,051       246,735  
    Prepaid expenses and other current assets   39,338       39,316  
    Total current assets   794,805       764,532  
    Property, plant and equipment, net   113,787       113,789  
    Operating lease right-of-use assets   25,991       26,503  
    Intangible assets, net   8,010       8,832  
    Goodwill   214,964       214,964  
    Deferred income taxes   118,567       120,191  
    Other assets   2,700       2,766  
    Total assets $ 1,278,824     $ 1,251,577  
                   
    Liabilities and stockholders’ equity              
    Current liabilities:              
    Accounts payable $ 57,845     $ 43,519  
    Accrued expenses and other current liabilities   62,257       55,195  
    Contract liabilities   57,211       64,986  
    Income taxes payable   1,546       2,086  
    Current portion of long-term debt         26,496  
    Total current liabilities   178,859       192,282  
    Deferred income taxes   663       689  
    Long-term debt   249,955       249,702  
    Long-term operating lease liabilities   33,694       34,318  
    Other liabilities   3,795       3,816  
    Total liabilities   466,966       480,807  
                   
    Total stockholders’ equity   811,858       770,770  
    Total liabilities and stockholders’ equity $ 1,278,824     $ 1,251,577  
                   

    Note on Reconciliation Tables

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

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

    Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2025)
    (in thousands)
    (unaudited)
     
                Non-GAAP Adjustments        
    Three months ended March 31, 2025      GAAP   Share-Based
    Compensation
         Amortization      Other      Non-GAAP
    Net sales   $ 167,292                 $ 167,292  
    Gross profit     68,467     1,343               69,810  
    Gross margin     40.9 %                 41.7 %
    Operating expenses     54,319     (7,865 )   (821 )   (99 )     45,534  
    Operating income     14,148     9,208     821     99 ^     24,276  
    Net income     11,947     9,208     821     231 ^     22,207  

    _______________
    ^   – See table below for additional details.

    Other Non-GAAP Adjustments (Q1 2025)
    (in thousands)
    (unaudited)
         
    Three months ended March 31, 2025       
    Other $ 99  
    Subtotal   99  
    Non-cash interest expense   257  
    Non-GAAP tax adjustment *   (125 )
    Total Other $ 231  

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

    Net Income per Common Share (Q1 2025)
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31, 2025
      GAAP   Non-GAAP
    Numerator:              
    Net income $ 11,947     $ 22,207  
    Interest expense associated with 2025 and 2027 Convertible Senior Notes   253       273  
    Net income available to common shareholders $ 12,200     $ 22,480  
                   
    Denominator:              
    Basic weighted average shares outstanding   57,753       57,753  
    Effect of potentially dilutive share-based awards   693       693  
    Dilutive effect of 2025 Convertible Senior Notes         174  
    Dilutive effect of 2027 Convertible Senior Notes (1)   1,788       1,354  
    Diluted weighted average shares outstanding   60,234       59,974  
                   
    Net income per common share:              
    Basic $ 0.21     $ 0.38  
    Diluted $ 0.20     $ 0.37  

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

    Reconciliation of GAAP to Non-GAAP Financial Data (Q1 2024)
    (in thousands)
    (unaudited)
     
                Non-GAAP Adjustments        
    Three months ended March 31, 2024        GAAP       Share-based
    Compensation
         Amortization      Other      Non-GAAP
    Net sales   $ 174,484                 $ 174,484  
    Gross profit     75,419     1,730               77,149  
    Gross margin     43.2 %                 44.2 %
    Operating expenses     53,374     (6,352 )   (1,891 )   2,658       47,789  
    Operating income     22,045     8,082     1,891     (2,658 ) ^   29,360  
    Net income     21,854     8,082     1,891     (5,384 ) ^   26,443  

    _______________
    ^   – See table below for additional details.

    Other Non-GAAP Adjustments (Q1 2024)
    (in thousands)
    (unaudited)
     
    Three months ended March 31, 2024    
    Changes in contingent consideration $ (625 )
    Sale of productive assets   (2,033 )
    Subtotal   (2,658 )
    Non-cash interest expense   296  
    Non-GAAP tax adjustment *   (3,022 )
    Total Other $ (5,384 )

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

    Net Income per Common Share (Q1 2024)
    (in thousands, except per share amounts)
    (unaudited)
     
      Three months ended March 31, 2024
      GAAP   Non-GAAP
    Numerator:              
    Net income $ 21,854     $ 26,443  
    Interest expense associated with 2025 and 2027 Convertible Senior Notes   514       466  
    Net income available to common shareholders $ 22,368     $ 26,909  
                   
    Denominator:              
    Basic weighted average shares outstanding   55,968       55,968  
    Effect of potentially dilutive share-based awards   939       939  
    Dilutive effect of 2025 Convertible Senior Notes   1,104       1,104  
    Dilutive effect of 2027 Convertible Senior Notes (1)   1,788       1,354  
    Dilutive effect of 2029 Convertible Senior Notes   965       965  
    Diluted weighted average shares outstanding   60,764       60,330  
                   
    Net income per common share:              
    Basic $ 0.39     $ 0.47  
    Diluted $ 0.37     $ 0.45  

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

    Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q1 2025 and 2024)
    (in thousands)
    (unaudited)
     
      Three months ended      Three months ended
      March 31, 2025   March 31, 2024
    GAAP Net income $ 11,947     $ 21,854  
    Share-based compensation   9,208       8,082  
    Amortization   821       1,891  
    Sale of productive assets         (2,033 )
    Changes in contingent consideration         (625 )
    Interest (income) expense, net   (836 )     (705 )
    Other   99        
    Income tax expense (benefit)   3,037       896  
    Non-GAAP Operating income $ 24,276     $ 29,360  
                   
    Reconciliation of GAAP to Non-GAAP Financial Data (Q2 2025)
    (in millions, except per share amounts)
    (unaudited)
     
                        Non-GAAP Adjustments                
    Guidance for the three months ending                   Share-based                        
    June 30, 2025   GAAP   Compensation   Amortization      Other       Non-GAAP
    Net sales   $ 135       $ 165                 $ 135       $ 165  
    Gross profit     54         69     1               55         70  
    Gross margin     39 %       41 %                 40 %       42 %
    Operating expenses     57         58     (9 )   (1 )         47         48  
    Operating income (loss)     (3 )       11     10     1           8         22  
    Net income (loss)   $ (3 )     $ 10     10     1     (1 )   $ 7       $ 20  
                                                 
    Income (loss) per diluted common share   $ (0.05 )     $ 0.17                 $ 0.12       $ 0.32  
                                                         
    Income per Diluted Common Share (Q2 2025)
    (in millions, except per share amounts)
    (unaudited)
     
    Guidance for the three months ending June 30, 2025   GAAP   Non-GAAP
    Numerator:                                      
    Net income (loss) available to common shareholders   $ (3 )     $ 10     $ 7       $ 20  
                                           
    Denominator:                                      
    Basic weighted average shares outstanding     58           58       58           58  
    Effect of potentially dilutive share-based awards               1       1           1  
    Dilutive effect of 2027 Convertible Senior Notes (1)               2                 1  
    Diluted weighted average shares outstanding     58           61       59           61  
                                           
    Net income per common share:                                      
    Income (loss) per diluted common share   $ (0.05 )     $ 0.17     $ 0.12       $ 0.32  

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

    Reconciliation of GAAP Net Income to Non-GAAP Operating Income (Q2 2025)
    (in millions)
    (unaudited)
     
    Guidance for the three months ending June 30, 2025                         
    GAAP Net income (loss)   $ (3 )     $ 10  
    Share-based compensation     10         10  
    Amortization     1         1  
    Interest income, net     (1 )       (1 )
    Income tax expense (benefit)             1  
    Non-GAAP Operating income   $ 8       $ 22  
                         

    Note: Amounts may not calculate precisely due to rounding.

    The MIL Network

  • MIL-OSI: Silvaco Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

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

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

    Expanded Product Portfolio with the Acquisition of Tech-X Corporation

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

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

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

    First Quarter 2025 and Recent Business Highlights

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

    First Quarter 2025 Financial Results

    GAAP Financial Results

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

    Key Operating Indicators and Non-GAAP Financial Results:

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

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

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

    Second Quarter and Full Year 2025 Financial Outlook

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

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

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

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

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

    Q1 2025 Conference Call Details

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

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

    About Silvaco

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

    Safe Harbor Statement

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

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

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

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

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

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

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

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

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

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

    ACV is composed of the following: (i) the annualized value of term based software licenses with start dates or anniversary dates during the period, plus; (ii) the value of perpetual license contracts with start dates during the period, plus; (iii) the annualized value of maintenance & support as well as any fixed-term services contracts with start dates or anniversary dates during the period, plus; (iv) the value of fixed-deliverable services contracts. Silvaco and the Silvaco logo are registered trademarks of Silvaco Group, Inc. All other trademarks and service marks are the property of their respective owners.

    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in thousands except share and par value amounts)
           
      March 31, 2025   December 31, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 29,489     $ 19,606  
    Current marketable securities   45,048       63,071  
    Accounts receivable, net   5,783       9,211  
    Contract assets, net   15,102       11,932  
    Prepaid expenses and other current assets   4,500       3,460  
    Total current assets   99,922       107,280  
    Non-current assets:      
    Non-current marketable securities         4,785  
    Property and equipment, net   890       865  
    Operating lease right-of-use assets, net   1,534       1,711  
    Intangible assets, net   9,997       4,369  
    Goodwill   14,337       9,026  
    Non-current portion of contract assets   9,860       12,611  
    Other assets   1,595       1,698  
    Total non-current assets   38,213       35,065  
    Total assets $ 138,135     $ 142,345  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 2,137     $ 3,316  
    Accrued expenses and other current liabilities   32,426       19,801  
    Accrued income taxes   1,728       1,668  
    Deferred revenue, current   8,618       7,497  
    Operating lease liabilities, current   644       744  
    Vendor financing obligation, current   1,191       1,462  
    Total current liabilities   46,744       34,488  
    Non-current liabilities:      
    Deferred revenue, non-current   3,604       3,593  
    Operating lease liabilities, non-current   866       946  
    Vendor financing obligation, non-current   2,995       2,928  
    Other non-current liabilities   333       307  
    Total liabilities   54,542       42,262  
    Stockholders’ equity:      
    Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2025 and December 31, 2024 , respectively          
    Common stock, $0.0001 par value; 500,000,000 shares authorized; 28,805,280 and 28,526,615 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   3       3  
    Additional paid-in capital   132,937       130,360  
    Accumulated deficit   (47,285 )     (28,012 )
    Accumulated other comprehensive loss   (2,062 )     (2,268 )
    Total stockholders’ equity   83,593       100,083  
    Total liabilities and stockholders’ equity $ 138,135     $ 142,345  
           
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
    (Unaudited, in thousands except share and par value amounts)
           
      Three Months Ended March 31,
        2025       2024  
    Revenue:      
    Software license revenue $ 10,009     $ 12,258  
    Maintenance and service   4,083       3,631  
    Total revenue   14,092       15,889  
    Cost of revenue   3,016       1,973  
    Gross profit   11,076       13,916  
    Operating expenses:      
    Research and development   4,800       3,616  
    Selling and marketing   4,719       3,312  
    General and administrative   8,120       4,600  
    Estimated litigation claim   13,069        
    Total operating expenses   30,708       11,528  
    Operating (loss) income   (19,632 )     2,388  
    Interest income   863        
    Interest and other expense, net   (291 )     (205 )
    (Loss) income before income tax provision   (19,060 )     2,183  
    Income tax provision   213       805  
    Net (loss) income $ (19,273 )   $ 1,378  
    Net (loss) income per share:      
    Basic and diluted $ (0.67 )   $ 0.07  
    Weighted average shares used in computing per share amounts:      
    Basic and diluted   28,694,295       20,000,000  
           
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in thousands)
           
      Three Months Ended March 31,
        2025       2024  
    Cash flows from operating activities:      
    Net (loss) income $ (19,273 )   $ 1,378  
    Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:      
    Depreciation and amortization   438       120  
    Stock-based compensation expense   2,277        
    Provision for credit losses   10       222  
    Estimated litigation claim   13,069        
    Accretion of discount on marketable securities, net   (261 )      
    Change in fair value of contingent consideration   35       (8 )
    Changes in operating assets and liabilities:      
    Accounts receivable   3,520       (1,844 )
    Contract assets   440       (3,679 )
    Prepaid expenses and other current assets   (1,026 )     788  
    Other assets   119       (274 )
    Accounts payable   (1,183 )     877  
    Accrued expenses and other current liabilities   55       (729 )
    Accrued income taxes   58       574  
    Deferred revenue   567       (21 )
    Other non-current liabilities   20       24  
    Net cash used in operating activities   (1,135 )     (2,572 )
    Cash flows from investing activities:      
    Maturities of marketable securities   23,000        
    Acquisition of Process Proximity Compensation   (11,500 )      
    Purchases of property and equipment   (96 )     (10 )
    Net cash provided by (used in) investing activities   11,404       (10 )
    Cash flows from financing activities:      
    Proceeds from loan facility         4,250  
    Deferred transaction costs         (364 )
    Payroll taxes related to shares withheld from employees   (252 )      
    Contingent consideration   (46 )     (13 )
    Payments of vendor financing obligation   (205 )      
    Net cash (used in) provided by financing activities   (503 )     3,873  
    Effect of exchange rate fluctuations on cash and cash equivalents   117       27  
    Net increase in cash and cash equivalents   9,883       1,318  
    Cash and cash equivalents, beginning of period   19,606       4,421  
    Cash and cash equivalents, end of period $ 29,489     $ 5,739  
           
    SILVACO GROUP, INC.
    REVENUE
    (Unaudited)
        2024   2025
        Q1 Q2 Q3 Q4 Year   Q1
    Revenue by Region:                
    Americas   27 % 51 % 31 % 40 % 38 %   20 %
    APAC   62 % 41 % 58 % 52 % 53 %   66 %
    EMEA   11 % 8 % 11 % 8 % 9 %   14 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue by Product Line:                
    TCAD   66 % 69 % 59 % 71 % 68 %   56 %
    EDA   30 % 20 % 24 % 24 % 24 %   36 %
    SIP   4 % 11 % 17 % 5 % 8 %   8 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue Item Category:                
    Software license revenue   77 % 74 % 62 % 78 % 74 %   71 %
    Maintenance and service   23 % 26 % 38 % 22 % 26 %   29 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    Revenue by Country:                
    United States   26 % 50 % 30 % 39 % 37 %   20 %
    China   11 % 17 % 25 % 23 % 18 %   14 %
    Other   63 % 33 % 45 % 38 % 45 %   66 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 %
                     
    SILVACO GROUP, INC.
    GAAP to Non-GAAP Reconciliation
    (Unaudited, in thousands except per share amounts)
     
      Three Months Ended
      3/31/2025   3/31/2024
           
    GAAP Cost of revenue $ 3,016     $ 1,973  
    Less: Stock-based compensation expense   (199 )      
    Less: Amortization of acquired intangible assets   (249 )      
    Less: Acquisition-related professional fees and retention bonus   (8 )      
    Non-GAAP Cost of revenue $ 2,560     $ 1,973  
    GAAP Gross profit $ 11,076     $ 13,916  
    Add: Stock-based compensation expense   199        
    Add: Amortization of acquired intangible assets   249        
    Add: Acquisition-related professional fees and retention bonus   8        
    Non-GAAP Gross profit $ 11,532     $ 13,916  
    GAAP Research and development $ 4,800     $ 3,616  
    Less: Stock-based compensation expense   (244 )      
    Less: Acquisition-related professional fees and retention bonus   (18 )      
    Less: Amortization of acquired intangible assets   (51 )     (70
    Non-GAAP Research and development $ 4,487     $ 3,546  
    GAAP Selling and marketing $ 4,719     $ 3,312  
    Less: Stock-based compensation expense   (323      
    Less: IPO preparation costs         -127  
    Non-GAAP Selling and marketing $ 4,396     $ 3,185  
    GAAP General and administrative $ 8,120     $ 4,600  
    Less: Stock-based compensation expense   (1,511 )      
    Less: Acquisition-related estimated litigation claim and legal costs   (726 )     (594 )
    Less: Acquisition-related professional fees and retention bonus   (677 )      
    Less: Amortization of acquired intangible assets   (62 )      
    Less: IPO preparation costs         (139 )
    Non-GAAP General and administrative $ 5,144     $ 3,867  
    GAAP Estimated litigation claim $ 13,069     $  
    Less: Acquisition-related estimated litigation claim and legal costs   (13,069 )      
    Non-GAAP Estimated litigation claim $     $  
    GAAP Operating expenses $ 30,708     $ 11,528  
    Less: Stock-based compensation expense   (2,078 )      
    Less: Acquisition-related estimated litigation claim and legal costs   (13,795 )     (594 )
    Less: Acquisition-related professional fees and retention bonus   (695 )      
    Less: IPO preparation costs         (266 )
    Less: Amortization of acquired intangible assets   (113 )     (70 )
    Non-GAAP Operating expenses $ 14,027     $ 10,598  
    GAAP Operating (loss) income $ (19,632 )   $ 2,388  
    Add: Stock-based compensation expense   2,277        
    Add: Acquisition-related estimated litigation claim and legal costs   13,795       594  
    Add: Acquisition-related professional fees and retention bonus   703        
    Add: IPO preparation costs         266  
    Add: Amortization of acquired intangible assets   362       70  
    Non-GAAP Operating (loss) income $ (2,495 )   $ 3,318  
    GAAP Net (loss) income $ (19,273 )   $ 1,378  
    Add: Stock-based compensation expense   2,277        
    Add: Acquisition-related estimated litigation claim and legal costs   13,795       594  
    Add: Acquisition-related professional fees and retention bonus   703        
    Add: IPO preparation costs         266  
    Add: Amortization of acquired intangible assets   362       70  
    Add (Less): Change in fair value of contingent consideration   35       (8 )
    Add (Less): Foreign exchange (gain) loss   205       130  
    Add (Less): Income tax effect of non-GAAP adjustment   (5 )     (33 )
    Non-GAAP Net (loss) income $ (1,901 )   $ 2,397  
    GAAP Net income (loss) per share:      
    Basic and diluted: $ (0.67 )   $ 0.07  
    Non-GAAP Net income (loss) per share:      
    Basic and diluted $ (0.07 )   $ 0.12  
    Weighted average shares used in GAAP and non-GAAP net income (loss) per share:      
    Basic and diluted   28,694,295       20,000,000  
           

    Investor Contact:
    Greg McNiff
    investors@silvaco.com 

    Media Contact:
    Farhad Hayat
    press@silvaco.com

    The MIL Network

  • MIL-OSI: Encore Capital Group Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Favorable purchasing conditions continue in U.S. market
    • Global portfolio purchases up 24% to $368 million, including record $316 million in U.S.
    • Global collections up 18% to $605 million, including record $454 million in U.S.
    • Earnings per share of $1.93

    SAN DIEGO, May 07, 2025 (GLOBE NEWSWIRE) — Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the first quarter ended March 31, 2025.

    “Encore’s 2025 is off to a strong start, which is reflected in every measure of our first quarter financial performance,” said Ashish Masih, President and Chief Executive Officer. “Portfolio purchases in Q1 of $368 million were up 24% compared to the first quarter last year and collections of $605 million were up 18%. Our collections performance helped earnings more than double compared to last year, as first quarter earnings per share of $1.93 was up 103% compared to the $0.95 per share we delivered a year ago.”

    “Our MCM business in the U.S. continues to deliver very strong results. Empowered by the ongoing favorable supply environment, MCM portfolio purchases in the first quarter were a record $316 million, up 34% compared to the year ago quarter, at very attractive returns. MCM also delivered record collections of $454 million in the first quarter, up 23% compared to Q1 a year ago, driven by superior execution.”

    “Our Cabot business in Europe delivered a solid first quarter. Portfolio purchases of $51 million were in line with Cabot’s historical trend and collections of $150 million were up 7% compared to the first quarter last year.”

    “As a result of our strong start to the year and our continued investment and operational execution, we are reiterating our guidance for 2025 which we originally established in February. We anticipate our global portfolio purchasing this year will exceed the $1.35 billion of purchases we made in 2024 and we expect our year-over-year collections growth to be 11% to $2.4 billion. As always, we remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,” said Masih.

    In the first quarter, the company repurchased $10 million of its shares of common stock.

    Financial Highlights for the First Quarter of 2025:

      Three Months Ended March 31,
    (in thousands, except percentages and earnings per share)   2025     2024   Change
    Portfolio purchases(1) $ 367,851   $ 295,714   24 %
    Average receivable portfolios(2) $ 3,864,450   $ 3,499,910   10 %
    Estimated Remaining Collections (ERC) $ 8,862,661   $ 8,307,294   7 %
    Collections $ 604,807   $ 510,887   18 %
    Revenues $ 392,775   $ 328,386   20 %
    Operating expenses $ 263,432   $ 244,795   8 %
    Net income $ 46,796   $ 23,239   101 %
    Earnings per share $ 1.93   $ 0.95   103 %

    ______________________

    (1)   Includes U.S. purchases of $316.4 million and $236.5 million, and Europe purchases of $51.5 million and $59.2 million in Q1 2025 and Q1 2024, respectively.

    (2)   Represents the average of receivable portfolios for the quarter (receivable portfolios at the beginning and end of the quarter divided by 2).

    Conference Call and Webcast

    Encore will host a conference call and slide presentation today, May 7, 2025, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, to present and discuss first quarter results.

    Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore’s website at encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details.

    For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company’s website shortly after the call concludes.
    Non-GAAP Financial Measures

    This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered as an alternative to, or more meaningful than, net income and net income per share as indicators of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. A reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure is below.

    About Encore Capital Group, Inc.

    Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.

    Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.

    Forward Looking Statements

    The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including purchases and collections), performance, supply and pricing, liquidity, business plans or prospects. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent report on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.

    Contact:

    Bruce Thomas
    Encore Capital Group, Inc.
    Vice President, Global Investor Relations
    bruce.thomas@encorecapital.com

    SOURCE: Encore Capital Group, Inc.

    FINANCIAL TABLES FOLLOW

     
    ENCORE CAPITAL GROUP, INC.
    Condensed Consolidated Statements of Financial Condition
    (In Thousands, Except Par Value Amounts)
    (Unaudited)
      March 31,
    2025
      December 31,
    2024
    Assets      
    Cash and cash equivalents $ 187,117     $ 199,865  
    Receivable portfolios, net   3,952,531       3,776,369  
    Property and equipment, net   82,014       80,597  
    Other assets   228,514       225,090  
    Goodwill   519,410       507,808  
    Total assets $ 4,969,586     $ 4,789,729  
    Liabilities and Equity      
    Liabilities:      
    Accounts payable and accrued liabilities $ 234,000     $ 233,545  
    Borrowings   3,790,698       3,672,762  
    Other liabilities   125,827       116,091  
    Total liabilities   4,150,525       4,022,398  
    Commitments and Contingencies      
    Equity:      
    Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no
    shares issued and outstanding
             
    Common stock, $0.01 par value, 75,000 shares authorized, 23,510 and 23,691
    shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively
      235       237  
    Additional paid-in capital   9,645       19,297  
    Accumulated earnings   956,723       909,927  
    Accumulated other comprehensive loss   (147,542 )     (162,130 )
    Total stockholders’ equity   819,061       767,331  
    Total liabilities and stockholders’ equity $ 4,969,586     $ 4,789,729  
     

    The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the condensed consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company.

     
      March 31,
    2025
      December 31,
    2024
    Assets      
    Cash and cash equivalents $ 37,113   $ 23,875
    Receivable portfolios, net   907,079     895,704
    Other assets   4,583     3,699
    Liabilities      
    Accounts payable and accrued liabilities   3,148     2,946
    Borrowings   626,879     599,830
    Other liabilities   2,644     887
               
    ENCORE CAPITAL GROUP, INC.
    Condensed Consolidated Statements of Income
    (In Thousands, Except Per Share Amounts)
    (Unaudited)
      Three Months Ended
    March 31,
        2025       2024  
    Revenues      
    Portfolio revenue $ 345,218     $ 315,852  
    Changes in recoveries   21,464       (12,409 )
    Total debt purchasing revenue   366,682       303,443  
    Servicing revenue   22,547       20,379  
    Other revenues   3,546       4,564  
    Total revenues   392,775       328,386  
    Operating expenses      
    Salaries and employee benefits   105,932       104,184  
    Cost of legal collections   68,013       58,721  
    General and administrative expenses   41,018       36,241  
    Other operating expenses   34,252       30,367  
    Collection agency commissions   6,873       7,434  
    Depreciation and amortization   7,344       7,848  
    Total operating expenses   263,432       244,795  
    Income from operations   129,343       83,591  
    Other expense      
    Interest expense   (70,530 )     (55,765 )
    Other income   1,647       2,666  
    Total other expense   (68,883 )     (53,099 )
    Income before income taxes   60,460       30,492  
    Provision for income taxes   (13,664 )     (7,253 )
    Net income $ 46,796     $ 23,239  
           
    Earnings per share:      
    Basic $ 1.96     $ 0.98  
    Diluted $ 1.93     $ 0.95  
           
    Weighted average shares outstanding:      
    Basic   23,879       23,784  
    Diluted   24,269       24,468  
                   
    ENCORE CAPITAL GROUP, INC.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited, In Thousands)
      Three Months Ended March 31,
        2025       2024  
    Operating activities:      
    Net income $ 46,796     $ 23,239  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization   7,344       7,848  
    Other non-cash interest expense, net   3,544       3,727  
    Stock-based compensation expense   3,424       3,357  
    Changes in recoveries   (21,464 )     12,409  
    Other, net   1,737       887  
    Changes in operating assets and liabilities      
    Other assets   (3,499 )     (6,223 )
    Accounts payable, accrued liabilities and other liabilities   7,401       5,740  
    Net cash provided by operating activities   45,283       50,984  
    Investing activities:      
    Purchases of receivable portfolios, net of put-backs   (362,712 )     (291,367 )
    Collections applied to receivable portfolios   259,589       195,035  
    Purchases of property and equipment   (6,990 )     (6,861 )
    Other, net   9,835       12,311  
    Net cash used in investing activities   (100,278 )     (90,882 )
    Financing activities:      
    Payment of loan and debt refinancing costs   (255 )     (10,202 )
    Proceeds from credit facilities   246,426       248,549  
    Repayment of credit facilities   (185,831 )     (696,351 )
    Proceeds from senior secured notes         500,000  
    Repayment of senior secured notes         (9,770 )
    Repurchase and retirement of common stock   (10,004 )      
    Other, net   (9,999 )     23,564  
    Net cash provided by financing activities   40,337       55,790  
    Net (decrease) increase in cash and cash equivalents   (14,658 )     15,892  
    Effect of exchange rate changes on cash and cash equivalents   1,910       (1,266 )
    Cash and cash equivalents, beginning of period   199,865       158,364  
    Cash and cash equivalents, end of period $ 187,117     $ 172,990  
           
    Supplemental disclosures of cash flow information:      
    Cash paid for interest $ 41,303     $ 46,469  
    Cash paid for income taxes, net of refunds   1,247       1,542  
    Supplemental schedule of non-cash investing activities:      
    Receivable portfolios transferred to real estate owned $ 1,040     $ 2,045  
                   
    ENCORE CAPITAL GROUP, INC.
    Supplemental Financial Information
    Reconciliation of Non-GAAP Metrics
    Adjusted EBITDA
      Three Months Ended
    March 31,
    (in thousands, unaudited)   2025       2024  
    GAAP net income, as reported $ 46,796     $ 23,239  
    Adjustments:      
    Interest expense   70,530       55,765  
    Interest income   (1,546 )     (1,368 )
    Provision for income taxes   13,664       7,253  
    Depreciation and amortization   7,344       7,848  
    Stock-based compensation expense   3,424       3,357  
    Net loss (gain) on derivative instruments(1)         (195 )
    Acquisition, integration and restructuring related expenses(2)   248       2,319  
    Adjusted EBITDA $ 140,460     $ 98,218  
    Collections applied to principal balance(3) $ 244,300     $ 214,551  

    ________________________

    (1)   Amount represents gain or loss recognized on derivative instruments that are not designated as hedging instruments or gain or loss recognized on derivative instruments upon dedesignation of hedge relationships. We adjust for this amount because we believe the gain or loss on derivative contracts is not indicative of ongoing operations.
    (2)   Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results.
    (3)   Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned (“REO”) assets and, when applicable, other receivable portfolios. A reconciliation of “collections applied to receivable portfolios, net” to “collections applied to principal balance” is available in the Form 10-Q for the period ending March 31, 2025.

    The MIL Network

  • MIL-OSI: Cerence Announces Second Quarter Fiscal 2025 Results; Revenue and Profitability Exceed High End of Guidance

    Source: GlobeNewswire (MIL-OSI)

    Headlines

    • Revenue of $78M; free cash flow of $13.1M marks fourth consecutive positive quarter
    • Company reiterates full-year guidance for revenue and raises full-year guidance for profitability and cash flow
    • Continued innovation and customer momentum for Cerence xUI, the company’s next-gen platform

    BURLINGTON, Mass., May 07, 2025 (GLOBE NEWSWIRE) — Cerence Inc. (NASDAQ: CRNC) (“Cerence AI”), a global leader pioneering conversational AI-powered user experiences, today reported its second quarter fiscal year 2025 results for the quarter ended March 31, 2025.

    Results Summary (1,2)
    (in millions, except per share data)

        Three Months Ended     Six Months Ended  
        March 31,     March 31,  
        2025     2024     2025     2024  
    GAAP revenue (4)   $ 78.0     $ 67.8     $ 128.9     $ 206.2  
    GAAP gross margin     77.1 %     69.2 %     72.3 %     77.1 %
    GAAP total operating expenses (3)   $ 42.8     $ 311.3     $ 92.8     $ 364.7  
    Non-GAAP total operating expenses   $ 34.1     $ 50.0     $ 68.2     $ 94.4  
    GAAP net income (loss) (3)   $ 21.7     $ (278.0 )   $ (2.6 )   $ (254.1 )
    Adjusted EBITDA   $ 29.5     $ (0.3 )   $ 30.8     $ 70.1  
    Free cash flow   $ 13.1     $ (0.8 )   $ 21.0     $ (4.5 )
    GAAP net income (loss) per share – diluted (3)   $ 0.46     $ (6.66 )   $ (0.06 )   $ (6.13 )
     
    (1) As previously disclosed, for the six months ended March 31, 2024, revenue includes the non-cash revenue associated with the Toyota “Legacy” contract and related impacts totaling $86.6M.
    (2) Please refer to the “Discussion of Non-GAAP Financial Measures” and “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” included elsewhere in this release for more information regarding our use of non-GAAP financial measures.
    (3) As previously disclosed, for the six months ended March 31, 2024, operating expenses include a Goodwill impairment charge of $252M.
    (4) Q2FY25 and Q2FY24 revenue include $21.5 million and $10.4 million of revenue from fixed license contracts, respectively.
     

    “I’m incredibly proud of what our team has accomplished. We surpassed the high end of our revenue and adjusted EBITDA guidance and posted our fourth consecutive quarter of positive free cash flow, demonstrating the high value we provide to the world’s leading automakers as they work through the ongoing macro uncertainties and complexities facing the industry today,” said Brian Krzanich, CEO, Cerence AI. “As we look to the future and based on currently available information, we believe we are well-positioned to continue supporting our customers as they work to bring an enhanced experience to their drivers. With Cerence xUI, we are partnering with OEMs as they contemplate and build their future infotainment platforms, as well as delivering enhanced user experiences via over-the-air updates as automakers upgrade their current systems to deliver next-gen features and capabilities to their drivers today.” 

    Cerence Key Performance Indicators
    To help investors gain further insight into Cerence’s business and its performance, management provides a set of key performance indicators that includes:

    Key Performance Indicator1   Q2FY25
    Percent of worldwide auto production with Cerence Technology (trailing twelve months (“TTM”))   51 %
    Change in number of Cerence connected cars shipped (TTM over prior year TTM)2   10 %
    Change in Adjusted Total Billings (TTM over prior year TTM)3   0 %
           
    (1) Please refer to the “Key Performance Indicators” section included elsewhere in this release for more information regarding the definitions and our use of key performance indicators.
    (2) Based on IHS Markit data, global auto production decreased 1%, calculated TTM over prior year TTM.
    (3) Adjusted Total Billings excludes professional services and prepay contracts and is adjusted for prepay consumption. Change in Adjusted Total Billings is calculated TTM over prior year TTM.
           

    Third Quarter and Full Year Fiscal 2025 Outlook
    For the fiscal quarter ending June 30, 2025, revenue is expected to be in the range of $52 million to $56 million, where no material Fixed License revenue contracts are expected to be signed during the quarter. Gross margins are projected between 66% and 68% and net loss is projected in the range of $13 million to $10 million. Adjusted EBITDA is expected to be in the range of $1 million to $4 million. The adjusted EBITDA guidance excludes amortization of acquired intangible assets, stock-based compensation, restructuring and other costs.

    Revenue guidance for the full fiscal year ending September 30, 2025 remains unchanged; however, net loss is now projected in the range of $35 million to $29 million, adjusted EBITDA is now expected to be in the range of $28 million to $34 million, net cash provided by operating activities is projected in the range of $39 million to $45 million, and free cash flow is expected in the range of $25 million to $35 million.

    Additional details regarding guidance will be provided during the company’s earnings call.

    Cerence Conference Call and Webcast
    The company will host a live conference call and webcast with slides to discuss its results today at 5:00pm Eastern Time / 2:00pm Pacific Time. Interested investors and analysts are invited to dial into the conference call by registering here.

    Webcast access also will be available on the Investor section of the company’s website at https://www.cerence.com/investors/events-and-resources.

    A replay of the webcast can be accessed by visiting the company’s website 90 minutes following the conference call at https://www.cerence.com/investors/events-and-resources.

    Forward Looking Statements
    Statements in this press release regarding: Cerence’s future performance, results and financial condition; expected growth and profitability; outlook and momentum; transformation plans and cost efficiency initiatives; strategy; opportunities; business, industry and market trends; strategy regarding fixed contracts and its impact on financial results; backlog; revenue visibility; revenue timing and mix; demand for Cerence products; innovation and new product offerings, including AI technology; expected benefits of technology partnerships; and management’s future expectations, anticipations, intentions, estimates, assumptions, beliefs, goals, objectives, targets, plans, outlook or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “goal,” “objective,” “anticipates,” “projects,” “forecasts,” “expects,” “intends,” “continues,” “will,” “may,” or “estimates” or similar expressions) should also be considered to be forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions as of the date of this press release, such statements involve known and unknown risk, uncertainties and other factors, which may cause actual results or performance of the company to be materially different from any future results or performance expressed or implied by such forward-looking statements including but not limited to: the highly competitive and rapidly changing market in which we operate; adverse conditions in the automotive industry or the global economy more generally; volatility in the political, legal and regulatory environment in which we operate, including trade, tariffs and other policies implemented by the new administration in the United States or actions taken by other countries in response; automotive production curtailment or delays; changes in customer forecasts; the impacts of the COVID-19 pandemic on our and our customers’ businesses; the ongoing conflicts in Ukraine and the Middle East; our inability to control and successfully manage our expenses and cash position; our inability to deliver improved financial results from process optimization efforts and cost reduction actions; escalating pricing pressures from our customers; the impact on our business of the transition to a lower level of fixed contracts, including the failure to achieve such a transition; our failure to win, renew or implement service contracts; the cancellation or postponement of existing contracts; the loss of business from any of our largest customers; effects of customer defaults; a decrease in the level of professional service projects; our inability to successfully introduce new products, applications and services; our strategies to increase cloud offerings and deploy generative AI and large language models (LLMs); the inability to expand into adjacent markets; the inability to recruit and retain qualified personnel; disruptions arising from transitions in management personnel; cybersecurity and data privacy incidents; failure to protect our intellectual property; adverse developments related to our intellectual property enforcement litigation, the outcome of such litigation, or remedies that could be awarded in connection with such litigation; defects or interruptions in service with respect to our products; fluctuating currency rates and interest rates; inflation; financial and credit market volatility; restrictions on our current and future operations under the terms of our debt, the use of cash to service or repay our debt; and our inability to generate sufficient cash from our operations; and the other factors discussed in our most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

    Discussion of Non-GAAP Financial Measures
    We believe that providing the non-GAAP information, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP.

    We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. While our management uses these non-GAAP financial measures as a tool to enhance their understanding of certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial statements.

    Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial statements, allows for greater transparency in the review of our financial and operational performance. In assessing the overall health of the business during the three months ended March 31, 2025 and 2024, our management has either included or excluded the following items in general categories, each of which is described below.

    Adjusted EBITDA.
    Adjusted EBITDA is defined as net income attributable to Cerence Inc. before net income (loss) attributable to income tax (benefit) expense, other income (expense) items, net, depreciation and amortization expense, and excluding amortization of acquired intangible assets, stock-based compensation, and restructuring and other costs, net and impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. From time to time we may exclude from Adjusted EBITDA the impact of events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. Other income (expense) items, net include interest expense, interest income, and other income (expense), net (as stated in our Condensed Consolidated Statement of Operations). Our management and Board of Directors use this financial measure to evaluate our operating performance. It is also a significant performance measure in our annual incentive compensation programs. 

    Restructuring and other costs, net.
    Restructuring and other costs, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business such as employee severance costs, consulting costs relating to our transformation initiatives, and costs for consolidating duplicate facilities.

    Amortization of acquired intangible assets.
    We exclude the amortization of acquired intangible assets from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Providing a supplemental measure which excludes these charges allows management and investors to evaluate results “as-if” the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Future acquisitions may result in the amortization of additional intangible assets.

    Stock-based compensation.
    Because of varying valuation methodologies, subjective assumptions and the variety of award types, we exclude stock-based compensation from our operating results. We evaluate performance both with and without these measures because compensation expense related to stock-based compensation is typically non-cash and awards granted are influenced by the Company’s stock price and other factors such as volatility that are beyond our control. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include such charges in operating plans. Stock-based compensation will continue in future periods.

    Other expenses.
    We exclude certain other expenses that result from unplanned events outside the ordinary course of continuing operations, in order to measure operating performance and current and future liquidity both with and without these expenses. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our organic, continuing operations. Included in these expenses are items such as other charges (credits), net, (gains) losses from extinguishment of debt, and changes in indemnification assets corresponding with the release of pre-spin liabilities for uncertain tax positions.

    Key Performance Indicators
    We believe that providing key performance indicators (“KPIs”) allows investors to gain insight into the way management views the performance of the business. We further believe that providing KPIs allows investors to better understand information used by management to evaluate and measure such performance. KPIs should not be considered superior to, or a substitute for, operating results prepared in accordance with GAAP. In assessing the performance of the business during the three months ended March 31, 2025, our management has reviewed the following KPIs, each of which is described below:

    • Percent of worldwide auto production with Cerence Technology (TTM): The number of Cerence enabled cars shipped as compared to IHS Markit car production data.
    • Change in number of Cerence connected cars shipped: The year-over-year change in the number of cars shipped with Cerence connected solutions. Amounts calculated on a TTM basis.
    • Change in Adjusted total billings YoY (TTM): The year over year change in total billings excluding Professional Services, prepay billings and adjusted for prepay consumption. TTM over prior year TTM.

    See the tables at the end of this press release for non-GAAP reconciliations to the most directly comparable GAAP measures.

    To learn more about Cerence AI, visit www.cerence.ai, and follow the company on LinkedIn.

    About Cerence Inc.
    Cerence Inc. (NASDAQ: CRNC) is a global industry leader in creating intuitive, seamless, AI-powered experiences across automotive and transportation. Leveraging decades of innovation and expertise in voice, generative AI, and large language models, Cerence powers integrated experiences that create safer, more connected, and more enjoyable journeys for drivers and passengers alike. With more than 500 million cars shipped with Cerence technology, the company partners with leading automakers, transportation OEMs, and technology companies to advance the next generation of user experiences. Cerence is headquartered in Burlington, Massachusetts, with operations globally and a worldwide team dedicated to pushing the boundaries of AI innovation. For more information, visit www.cerence.ai.

    CERENCE INC.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
    (unaudited)

      Three Months Ended     Six Months Ended  
      March 31,     March 31,  
      2025     2024     2025     2024  
    Revenues:                      
    License $ 51,460     $ 35,527     $ 74,185     $ 56,350  
    Connected services   12,648       13,597       26,355       110,417  
    Professional services   13,902       18,701       28,366       39,393  
    Total revenues   78,010       67,825       128,906       206,160  
    Cost of revenues:                      
    License   2,432       1,404       4,214       3,008  
    Connected services   4,979       5,359       11,290       12,662  
    Professional services   10,418       14,119       20,149       31,444  
    Amortization of intangible assets                     103  
    Total cost of revenues   17,829       20,882       35,653       47,217  
    Gross profit   60,181       46,943       93,253       158,943  
    Operating expenses:                      
    Research and development   23,332       31,846       44,201       65,152  
    Sales and marketing   4,930       5,619       9,696       11,690  
    General and administrative   11,199       16,659       23,953       29,452  
    Amortization of intangible assets   536       555       1,090       1,100  
    Restructuring and other costs, net   2,832       4,551       13,894       5,256  
    Goodwill impairment         252,096             252,096  
    Total operating expenses   42,829       311,326       92,834       364,746  
    Income (loss) from operations   17,352       (264,383 )     419       (205,803 )
    Interest income   918       1,190       2,355       2,622  
    Interest expense   (2,716 )     (3,111 )     (6,109 )     (6,347 )
    Other income (expense), net   499       (25 )     771       1,397  
    Income (loss) before income taxes   16,053       (266,329 )     (2,564 )     (208,131 )
    (Benefit from) provision for income taxes   (5,603 )     11,647       68       45,988  
    Net income (loss) $ 21,656     $ (277,976 )   $ (2,632 )   $ (254,119 )
    Net income (loss) per share:                      
    Basic $ 0.50     $ (6.66 )   $ (0.06 )   $ (6.13 )
    Diluted $ 0.46     $ (6.66 )   $ (0.06 )   $ (6.13 )
    Weighted-average common share outstanding:                      
    Basic   43,223       41,724       43,059       41,452  
    Diluted   51,530       41,724       43,059       41,452  
                                   

    CERENCE INC.
    Condensed Consolidated Balance Sheets
    (in thousands, except per share amounts)

      March 31,     September 30,  
      2025     2024  
      (Unaudited)        
    ASSETS          
    Current assets:          
    Cash and cash equivalents $ 117,368       121,485  
    Marketable securities   5,413       5,502  
    Accounts receivable, net of allowances of $54 and $1,613   65,018       62,755  
    Deferred costs   4,737       5,286  
    Prepaid expenses and other current assets   39,633       70,481  
    Total current assets   232,169       265,509  
    Long-term marketable securities         3,453  
    Property and equipment, net   29,412       30,139  
    Deferred costs   15,960       18,051  
    Operating lease right of use assets   17,989       12,879  
    Goodwill   293,357       296,858  
    Intangible assets, net   551       1,706  
    Deferred tax assets   55,248       51,398  
    Other assets   20,860       22,365  
    Total assets $ 665,546     $ 702,358  
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Current liabilities:          
    Accounts payable $ 6,634     $ 3,959  
    Deferred revenue   49,740       52,822  
    Short-term operating lease liabilities   3,958       4,528  
    Short-term debt   60,056       87,094  
    Accrued expenses and other current liabilities   37,506       68,405  
    Total current liabilities   157,894       216,808  
    Long-term debt   197,593       194,812  
    Deferred revenue, net of current portion   119,954       114,354  
    Long-term operating lease liabilities   14,557       8,803  
    Other liabilities   26,279       26,484  
    Total liabilities   516,277       561,261  
    Stockholders’ Equity:          
    Common stock, $0.01 par value, 560,000 shares authorized; 43,254 and 41,924 shares issued and outstanding, respectively   433       419  
    Accumulated other comprehensive loss   (28,814 )     (25,912 )
    Additional paid-in capital   1,102,022       1,088,330  
    Accumulated deficit   (924,372 )     (921,740 )
    Total stockholders’ equity   149,269       141,097  
    Total liabilities and stockholders’ equity $ 665,546     $ 702,358  
                   

    CERENCE INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)

      Six Months Ended  
      March 31,  
      2025     2024  
    Cash flows from operating activities:          
    Net loss $ (2,632 )   $ (254,119 )
    Adjustments to reconcile net loss to net cash provided by (used in) operations:          
    Depreciation and amortization   5,793       5,384  
    Provision for credit loss reserve   208       6,065  
    Stock-based compensation   13,702       13,125  
    Non-cash interest expense   3,348       2,939  
    Loss on debt extinguishment   (327 )      
    Deferred tax (benefit) provision   (4,271 )     40,949  
    Goodwill impairment         252,096  
    Unrealized foreign currency transaction losses (gains)   345       (262 )
    Other, net   (33 )     474  
    Changes in operating assets and liabilities:          
    Accounts receivable   (8,029 )     (75 )
    Prepaid expenses and other assets   25,250       5,854  
    Deferred costs   2,041       3,423  
    Accounts payable   2,492       (292 )
    Accrued expenses and other liabilities   (23,532 )     (1,673 )
    Deferred revenue   10,365       (75,659 )
    Net cash provided by (used in) operating activities   24,720       (1,771 )
    Cash flows from investing activities:          
    Capital expenditures   (3,703 )     (2,776 )
    Purchases of marketable securities          
    Sale and maturities of marketable securities   3,493       3,912  
    Other investing activities   (716 )     (891 )
    Net cash (used in) provided by investing activities   (926 )     245  
    Cash flows from financing activities:          
    Proceeds from revolving credit facility          
    Proceeds from long-term debt, net of discount          
    Payments for long-term debt issuance costs          
    Principal payments of short-term debt   (26,964 )      
    Common stock repurchases for tax withholdings for net settlement of equity awards   (2,171 )     (9,744 )
    Principal payment of lease liabilities arising from a finance lease   (229 )     (202 )
    Proceeds from the issuance of common stock   2,175       10,461  
    Net cash (used in) provided by financing activities   (27,189 )     515  
    Effects of exchange rate changes on cash and cash equivalents   (722 )     (967 )
    Net change in cash and cash equivalents   (4,117 )     (1,978 )
    Cash and cash equivalents at beginning of period   121,485       101,154  
    Cash and cash equivalents at end of period $ 117,368     $ 99,176  
                   

    CERENCE INC.
    Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
    (unaudited – in thousands)

      Three Months Ended     Six Months Ended  
      March 31,     March 31,  
      2025     2024     2025     2024  
    GAAP revenue $ 78,010     $ 67,825     $ 128,906     $ 206,160  
                           
    GAAP gross profit $ 60,181     $ 46,943     $ 93,253     $ 158,943  
    GAAP gross margin   77.1 %     69.2 %     72.3 %     77.1 %
                           
    GAAP total operating expenses $ 42,829     $ 311,326     $ 92,834     $ 364,746  
    Stock-based compensation   5,374       4,079       9,692       11,818  
    Amortization of intangible assets   536       555       1,090       1,203  
    Restructuring and other costs, net   2,832       4,551       13,894       5,256  
    Goodwill impairment         252,096             252,096  
    Non-GAAP total operating expenses $ 34,087     $ 50,045     $ 68,158     $ 94,373  
                           
    GAAP net income (loss) $ 21,656     $ (277,976 )   $ (2,632 )   $ (254,119 )
    Stock-based compensation*   5,931       4,745       10,739       13,125  
    Amortization of intangible assets   536       555       1,090       1,203  
    Restructuring and other costs, net*   2,832       4,551       13,894       5,256  
    Goodwill impairment         252,096             252,096  
    Depreciation   2,812       2,143       4,703       4,181  
    Total other expense, net   1,299       1,946       2,983       2,328  
    (Benefit from) provision for income taxes   (5,603 )     11,647       68       45,988  
    Adjusted EBITDA $ 29,463     $ (293 )   $ 30,845     $ 70,058  
                           
    GAAP net cash provided by (used in) operating activities $ 15,466     $ 1,044     $ 24,720     $ (1,771 )
    Capital expenditures   (2,343 )     (1,845 )     (3,703 )     (2,776 )
    Free cash flow $ 13,123     $ (801 )   $ 21,017     $ (4,547 )
    * – $3.0 million in stock-based compensation is included in Restructuring and other costs, net for the six months ended March 31, 2025.
       

    The MIL Network

  • MIL-OSI: H&R Block Reports Fiscal 2025 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    — Delivered Revenue Growth of 4%, Net Income Growth of 5%, and EPS Growth of 9%

    — Improved Volume and Market Share Trends in Assisted Channel Through April 30 —

    — Reaffirms Full Year 2025 Outlook —

    KANSAS CITY, Mo., May 07, 2025 (GLOBE NEWSWIRE) — H&R Block, Inc. (NYSE: HRB) (the “Company”) today released financial results1 for its fiscal 2025 third quarter ended March 31, 2025.

    “Today we are reaffirming our FY25 outlook,” said Jeff Jones, president and chief executive officer. “Our transformation continues to gather momentum and deliver results. We meaningfully enhanced the new client experience this season, driving higher client satisfaction scores and improving volume and market share trends in the Assisted channel.”

    Fiscal 2025 Third Quarter Results and Key Financial Metrics

    “In the Assisted channel, we struck a healthy balance of price, volume, and mix in the quarter which is a testament to our redesigned client experience and our unwavering commitment to delivering value for our clients,” said Tiffany Mason, chief financial officer. “I remain confident in our ability to continue driving significant value as we have a resilient business with strong financial fundamentals, consistent cash flow generation, and a shareholder-friendly capital return practice.”

    Total revenue of $2.3 billion increased by $92.3 million, or 4.2%, versus prior year. The increase was the result of an increase in overall net average charge (NAC), and higher company-owned return volumes in the U.S, partially offset by lower international revenue, and lower interest and fee income on Emerald Advance.

    Total operating expenses of $1.3 billion increased by $42.2 million or 3.4%, primarily due to higher tax professional wages and benefits as a result of the increase in company-owned return volume.

    Net income from continuing operations increased $31.3 million, or 4.5% to $722.9 million.

    Earnings per share from continuing operations2 increased 9.2% to $5.32, and adjusted earnings per share from continuing operations2 increased 8.9% to $5.38, due to higher net income and fewer shares outstanding from share repurchases.

    Capital Allocation

    The Company reported the following related to its capital structure:

    • As previously announced, a quarterly cash dividend of $0.375 per share will be paid on July 3, 2025 to shareholders of record as of June 4, 2025. H&R Block has paid quarterly dividends consecutively since the Company became public in 1962.
    • In the first and second quarters of fiscal 2025, the company repurchased 6.5 million shares at an aggregate price of $400 million, or $61.10 per share.
    • The Company has approximately $1.1 billion remaining on its $1.5 billion share repurchase program.

    Since 2016, the Company has returned more than $4.5 billion to shareholders in the form of dividends and share repurchases, buying back over 43% of its shares outstanding3.

    Fiscal Year 2025 Outlook Reaffirmed

    The Company continues to expect:

    • Revenue to be in the range of $3.69 to $3.75 billion.
    • EBITDA4 to be in the range of $975 million to $1.02 billion.
    • Effective tax rate to be approximately 13%, resulting in a one-time benefit to EPS of approximately 50 cents.
    • Adjusted Diluted Earnings Per Share4 to be in the range of $5.15 to $5.35.

    Conference Call

    The Company will host a conference call for analysts and investors to discuss third quarter 2025 results at 4:30 p.m. ET on Wednesday, May 7, 2025. To join live, participants must register at https://register-conf.media-server.com/register/BI6c8ca5ffb9a24eecba80c3c3a79d2043. Once registered, the participant will receive a dial-in number and unique PIN to access the call. Please join approximately 5 minutes prior to the scheduled start time.

    The call, along with a presentation for viewing, will also be webcast in a listen-only format for the media and general public. The webcast can be accessed directly at https://edge.media-server.com/mmc/p/wfx9997r and will be available for replay 2 hours after the call is concluded and continuing for 90 days. 

    About H&R Block

    H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

    About Non-GAAP Financial Information

    This press release and the accompanying tables include non-GAAP financial information. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles, please see the section of the accompanying tables titled “Non-GAAP Financial Information.”

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “commits,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “goal,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, client trajectory, income, effective tax rate, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volumes or other financial items, descriptions of management’s plans or objectives for future operations, products or services, or descriptions of assumptions underlying any of the above. They may also include the expected impact of external events beyond the Company’s control, such as outbreaks of infectious disease, severe weather events, natural or manmade disasters, or changes in the regulatory environment in which we operate. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to a variety of economic, competitive and regulatory factors, many of which are beyond the Company’s control, that are described in our Annual Report on Form 10-K for the most recently completed fiscal year in the section entitled “Risk Factors” and additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. You may get such filings for free at our website at https://investors.hrblock.com. In addition, factors that may cause the Company’s actual estimated effective tax rate to differ from estimates include the Company’s actual results from operations compared to current estimates, future discrete items, changes in interpretations and assumptions the Company has made, future actions of the Company, or increases in applicable tax rates in jurisdictions where the Company operates. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

    1All amounts in this release are unaudited. Unless otherwise noted, all comparisons refer to the current period compared to the corresponding prior year period.
    2All per share amounts are based on fully diluted shares at the end of the corresponding period. The Company reports non-GAAP financial measures of performance, including adjusted earnings per share (EPS), earnings before interest, tax, depreciation, and amortization (EBITDA) from continuing operations, and free cash flow which it considers to be useful metrics for management and investors to evaluate and compare the ongoing operating performance of the Company. See “About Non-GAAP Financial Information” below for more information regarding financial measures not prepared in accordance with generally accepted accounting principles (GAAP).
    3Shares outstanding calculated as of April 30, 2016.
    4Adjusted Diluted EPS and EBITDA from continuing operations are non-GAAP financial measures. Future period non-GAAP outlook includes adjustments for items not indicative of our core operations, which may include, without limitation, items described in the below section titled “Non-GAAP Financial Information” and in the accompanying tables. Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual, or unanticipated charges, expenses or gains, or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP outlook to the most comparable GAAP measures.

    For Further Information
         
    Investor Relations:   Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com
    Media Relations:   Media Desk, mediadesk@hrblock.com
         
    FINANCIAL RESULTS   (unaudited, in 000s – except per share amounts)
        Three months ended March 31,   Nine months ended March 31,
          2025       2024       2025       2024  
    REVENUES:                
    U.S. tax preparation and related services:                
    Assisted tax preparation   $         1,635,877     $ 1,534,825     $         1,727,220     $ 1,622,430  
    Royalties                  133,961       141,915                    143,312       153,070  
    DIY tax preparation                  214,666       198,570                    231,646       215,529  
    Refund Transfers                  113,732       118,937                    115,229       120,892  
    Peace of Mind® Extended Service Plan                    15,625       16,813                      54,867       59,100  
    Tax Identity Shield®                      7,025       7,536                      14,947       16,810  
    Other                    14,582       12,065                      40,215       32,637  
    Total U.S. tax preparation and related services               2,135,468       2,030,661                 2,327,436       2,220,468  
    Financial services:                
    Emerald Card® and SpruceSM                    40,195       41,160                      59,169       61,493  
    Interest and fee income on Emerald Advance®                    14,286       21,169                      26,594       36,702  
    Total financial services                    54,481       62,329                      85,763       98,195  
    International                    60,438       68,264                    157,104       158,398  
    Wave                    26,717       23,580                      79,681       70,656  
    Total revenues   $         2,277,104     $ 2,184,834     $         2,649,984     $ 2,547,717  
    Compensation and benefits:                
    Field wages                  532,916       510,299                    682,575       650,529  
    Other wages                    74,621       75,356                    230,687       222,125  
    Benefits and other compensation                  111,575       99,653                    188,731       170,964  
                       719,112       685,308                 1,101,993       1,043,618  
    Occupancy                  119,709       119,364                    326,026       319,843  
    Marketing and advertising                  196,667       194,349                    221,502       211,135  
    Depreciation and amortization                    29,221       30,672                      87,247       91,004  
    Bad debt                    40,479       41,008                      62,625       67,560  
    Other                  193,603       185,929                    393,900       360,111  
    Total operating expenses               1,298,791       1,256,630                 2,193,293       2,093,271  
    Other income (expense), net                      4,554       5,224                      19,215       20,982  
    Interest expense on borrowings                   (24,686 )     (26,070 )                   (62,285 )     (63,304 )
    Pretax income                  958,181       907,358                    413,621       412,124  
    Income taxes                  235,253       215,772                    104,580       72,527  
    Net income from continuing operations                  722,928       691,586                    309,041       339,597  
    Net loss from discontinued operations                        (598 )     (849 )                     (2,707 )     (2,097 )
    Net income   $            722,330     $ 690,737     $            306,334     $ 337,500  
    DILUTED EARNINGS PER SHARE                
    Continuing operations   $                  5.32     $ 4.87     $                  2.23     $ 2.34  
    Discontinued operations                       (0.01 )     (0.01 )                       (0.02 )     (0.02 )
    Consolidated   $                  5.31     $ 4.86     $                  2.21     $ 2.32  
    WEIGHTED AVERAGE DILUTED SHARES                  135,329       141,540                    137,944       144,594  
    Adjusted diluted EPS (1)   $                  5.38     $ 4.94     $                  2.41     $ 2.54  
    EBITDA (1)   $         1,012,088     $ 964,100     $            563,153     $ 566,432  
                     
    (1) All non-GAAP measures are results from continuing operations. See “Non-GAAP Financial Information” for a reconciliation of non-GAAP measures.
     
    CONSOLIDATED BALANCE SHEETS   (unaudited, in 000s – except per share data)
    As of   March 31, 2025   June 30, 2024
             
    ASSETS        
    Cash and cash equivalents   $                   772,946     $ 1,053,326  
    Cash and cash equivalents – restricted                           16,744       21,867  
    Receivables, net                         352,398       69,075  
    Prepaid expenses and other current assets                         104,450       95,208  
    Total current assets                      1,246,538       1,239,476  
    Property and equipment, net                         146,456       131,319  
    Operating lease right of use assets                         417,197       461,986  
    Intangible assets, net                         270,007       264,102  
    Goodwill                         785,936       785,226  
    Deferred tax assets and income taxes receivable                         308,989       271,658  
    Other noncurrent assets                           69,888       65,043  
    Total assets   $                3,245,011     $ 3,218,810  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    LIABILITIES:        
    Accounts payable and accrued expenses   $                   243,754     $ 155,830  
    Accrued salaries, wages and payroll taxes                         269,849       105,548  
    Accrued income taxes and reserves for uncertain tax positions                         346,733       318,830  
    Current portion of long-term debt                         349,787        
    Operating lease liabilities                         173,902       206,070  
    Deferred revenue and other current liabilities                         205,778       191,050  
    Total current liabilities                      1,589,803       977,328  
    Long-term debt and line of credit borrowings                      1,142,890       1,491,095  
    Deferred tax liabilities and reserves for uncertain tax positions                         337,634       291,063  
    Operating lease liabilities                         252,630       265,373  
    Deferred revenue and other noncurrent liabilities                         114,892       103,357  
    Total liabilities                      3,437,849       3,128,216  
    COMMITMENTS AND CONTINGENCIES        
    STOCKHOLDERS’ EQUITY:        
    Common stock, no par, stated value $.01 per share                             1,644       1,709  
    Additional paid-in capital                         758,821       762,583  
    Accumulated other comprehensive loss                         (71,317 )     (48,845 )
    Retained earnings (deficit)                       (236,909 )     12,654  
    Less treasury shares, at cost                       (645,077 )     (637,507 )
    Total stockholders’ equity (deficiency)                       (192,838 )     90,594  
    Total liabilities and stockholders’ equity   $                3,245,011     $ 3,218,810  
             
             
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   (unaudited, in 000s)
    Nine months ended March 31,     2025       2024  
             
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net income   $                   306,334     $ 337,500  
    Adjustments to reconcile net income to net cash provided by operating activities:        
    Depreciation and amortization                           87,247       91,004  
    Provision for credit losses                           56,042       61,359  
    Deferred taxes                         (12,503 )     (58,223 )
    Stock-based compensation                           25,420       25,310  
    Changes in assets and liabilities, net of acquisitions:        
    Receivables                       (335,605 )     (348,106 )
    Prepaid expenses, other current and noncurrent assets                           (7,504 )     (18,037 )
    Accounts payable, accrued expenses, salaries, wages and payroll taxes                         240,246       223,045  
    Deferred revenue, other current and noncurrent liabilities                           20,684       12,483  
    Income tax receivables, accrued income taxes and income tax reserves                           50,049       93,961  
    Other, net                           (1,088 )     (32 )
    Net cash provided by operating activities                         429,322       420,264  
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Capital expenditures                         (71,784 )     (53,831 )
    Payments made for business acquisitions, net of cash acquired                         (35,323 )     (43,163 )
    Franchise loans funded                         (21,455 )     (18,815 )
    Payments from franchisees                           11,478       12,884  
    Other, net                             6,194       3,282  
    Net cash used in investing activities                       (110,890 )     (99,643 )
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Repayments of line of credit borrowings                    (1,950,000 )     (1,025,000 )
    Proceeds from line of credit borrowings                      1,950,000       1,025,000  
    Dividends paid                       (147,136 )     (135,127 )
    Repurchase of common stock, including shares surrendered                       (436,516 )     (379,018 )
    Other, net                         (11,854 )     (6,358 )
    Net cash used in financing activities                       (595,506 )     (520,503 )
    Effects of exchange rate changes on cash                           (8,429 )     (2,739 )
    Net decrease in cash and cash equivalents, including restricted balances                       (285,503 )     (202,621 )
    Cash, cash equivalents and restricted cash, beginning of period                      1,075,193       1,015,316  
    Cash, cash equivalents and restricted cash, end of period   $                   789,690     $ 812,695  
    SUPPLEMENTARY CASH FLOW DATA:        
    Income taxes paid, net (includes payments for purchased investment tax credits)   $                     65,505     $ 35,888  
    Interest paid on borrowings                           63,251       66,464  
    Accrued additions to property and equipment                             2,448       1,477  
    New operating right of use assets and related lease liabilities                         135,372       139,872  
    Accrued dividends payable to common shareholders                           50,194       44,648  
             
             
    (in 000s)
        Three months ended March 31,   Nine months ended March 31,
    NON-GAAP FINANCIAL MEASURE – EBITDA     2025       2024       2025       2024  
                     
    Net income – as reported   $            722,330     $ 690,737     $            306,334     $ 337,500  
    Discontinued operations, net                          598       849                        2,707       2,097  
    Net income from continuing operations – as reported                  722,928       691,586                    309,041       339,597  
    Add back:                
    Income taxes                  235,253       215,772                    104,580       72,527  
    Interest expense                    24,686       26,070                      62,285       63,304  
    Depreciation and amortization                    29,221       30,672                      87,247       91,004  
                       289,160       272,514                    254,112       226,835  
    EBITDA from continuing operations   $         1,012,088     $ 964,100     $            563,153     $ 566,432  
                     
                     
    (in 000s, except per share amounts)
        Three months ended March 31,   Nine months ended March 31,
    NON-GAAP FINANCIAL MEASURE – EBITDA     2025       2024       2025       2024  
                     
    Net income from continuing operations – as reported   $            722,928     $ 691,586     $            309,041     $ 339,597  
    Adjustments:                
    Amortization of intangibles related to acquisitions (pretax)                    11,278       12,869                      33,316       37,693  
    Tax effect of adjustments (1)                     (2,927 )     (2,793 )                     (8,111 )     (8,815 )
    Adjusted net income from continuing operations   $            731,279     $ 701,622     $            334,246     $ 368,475  
    Diluted earnings per share from continuing operations – as reported   $                  5.32     $ 4.87     $                  2.23     $ 2.34  
    Adjustments, net of tax                        0.06       0.07                          0.18       0.20  
    Adjusted diluted earnings per share from continuing operations   $                  5.38     $ 4.94     $                  2.41     $ 2.54  
                     
    (1)Tax effect of adjustments is the difference between the tax provision calculated on a GAAP basis and on an adjusted non-GAAP basis.
     

    Non-GAAP Financial Information

    Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.

    We consider our non-GAAP financial measures to be performance measures and a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business. We make adjustments for certain non-GAAP financial measures related to amortization of intangibles from acquisitions and goodwill impairments. We may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.

    We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, adjusted EBITDA from continuing operations, adjusted diluted earnings per share from continuing operations, and free cash flow. We also use EBITDA from continuing operations and pretax income from continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

    The MIL Network

  • MIL-OSI: Open Lending Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, May 07, 2025 (GLOBE NEWSWIRE) — Open Lending Corporation (Nasdaq: LPRO) (the “Company” or “Open Lending”), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today reported financial results for its first quarter ended March 31, 2025.

    “I believe in Open Lending’s business model, our value proposition to our customers, and the team’s ability to execute on our plan going forward,” said Jessica Buss, Chief Executive Officer of Open Lending. “We are honored to continue serving over 400 lender customers and their communities and have taken actions in an effort to further enhance our customers’ experience. We believe that we have seen promising early results as we implement new ways to demonstrate how we enhance lender profitability.

    “We have introduced new loan measures and refined pricing in an effort to help reduce volatility in the expected profit share revenue of our future certified loans as compared to our historic vintages. Additionally, our board of directors has authorized a $25 million share repurchase program. We have a clear plan, a dedicated team, a consistent base of customers and partners, and a strong balance sheet, and we believe that we are well-positioned to generate value for all Open Lending stakeholders.”

    Three Months Ended March 31, 2025 Highlights

    • The Company facilitated 27,638 certified loans during the first quarter of 2025, compared to 28,189 certified loans in the first quarter of 2024.
    • Total revenue was $24.4 million during the first quarter of 2025, compared to $30.7 million in the first quarter of 2024.
      • The decrease in total revenue during the period includes a $7.4 million decrease in estimated profit share revenue associated with new originations, primarily driven by lower unit economics per certified loan.
      • In addition, the first quarter of 2025 was impacted by a $0.9 million reduction in estimated profit share revenues related to business in historic vintages as compared to a $1.1 million reduction in the first quarter of 2024.
    • Gross profit was $18.3 million during the first quarter of 2025, compared to $25.0 million in the first quarter of 2024.
    • Net income was $0.6 million during the first quarter of 2025, compared to $5.1 million in the first quarter of 2024.
    • Adjusted EBITDA was $5.7 million during the first quarter of 2025, compared to $12.5 million in the first quarter of 2024.

    Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure is provided in the financial table included at the end of this press release. An explanation of this measure and how it is calculated is also included under the heading “Non-GAAP Financial Measures.”

    Second Quarter 2025 Outlook
    For the second quarter of 2025, the Company currently expects total certified loans to be between 25,500 and 27,500.

    The guidance provided includes forward-looking statements within the meaning of U.S. securities laws. See “Forward-Looking Statements” below.

    Open Lending will host a conference call to discuss the first quarter 2025 financial results on May 7, 2025 at 5:00 pm ET. The conference call will be webcast live from the Company’s investor relations website at https://investors.openlending.com/ under the “Events” section. The conference call can also be accessed live over the phone by dialing (800) 445-7795, or for international callers (785) 424-1699. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.

    Share Repurchase Program
    On May 1, 2025, the Board of Directors authorized share repurchases under a share repurchase program (the “Share Repurchase Program”) allowing the Company to repurchase up to $25.0 million of the Company’s outstanding common stock until May 1, 2026. Repurchases may be made at management’s discretion from time to time in the open market. The Share Repurchase Program may be suspended, amended, or discontinued at any time.

    About Open Lending
    Open Lending (Nasdaq: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For over 20 years, we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.

    Forward-Looking Statements
    This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements related to the Company’s new loan measures, lender profitability, volatility, the Share Repurchase Program, market trends, consumer behavior and demand for automotive loans, as well as future financial performance under the heading “Second Quarter 2025 Outlook” above. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the Company’s control. These forward-looking statements are subject to a number of risks and uncertainties, including general economic, market, political and business conditions; applicable taxes, inflation, tariffs, supply chain disruptions including global hostilities and responses thereto, interest rates and the regulatory environment; the outcome of judicial proceedings to which Open Lending may become a party; and other risks discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. Subsequent events and developments may cause the Company’s assessments to change, but, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

    Non-GAAP Financial Measures
    The non-GAAP financial measures included in this press release are financial information that has not been prepared in accordance with GAAP. The Company uses Adjusted EBITDA and Adjusted EBITDA margin internally in analyzing our financial results and believes these measures are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. The Company believes that the use of 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 other companies in our industry, many of which present similar non-GAAP financial measures to investors.

    The Company believes these measures provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. In addition, these measures provide useful measures for period-to-period comparisons of our business, as they remove the effect of certain non-cash items and certain non-recurring variable charges. Adjusted EBITDA is defined as GAAP net income (loss) excluding interest expense, income tax expense, depreciation and amortization expense, and share-based compensation expense. Adjusted EBITDA margin is defined as Adjusted EBITDA expressed as a percentage of total revenue.

    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 non-GAAP financial measures to their most directly comparable GAAP financial measure provided in the financial statement tables included below in this press release.

    Investor Relations Contact:
    InvestorRelations@openlending.com

     
    OPEN LENDING CORPORATION
    Consolidated Balance Sheets
    (Unaudited)
    (In thousands, except share data)
     
        March 31, 2025   December 31, 2024
    Assets        
    Current assets        
    Cash and cash equivalents   $ 236,226     $ 243,164  
    Restricted cash     10,621       10,760  
    Accounts receivable, net     5,550       5,055  
    Current contract assets, net     18,643       9,973  
    Income tax receivable     3,568       3,558  
    Other current assets     3,179       3,215  
    Total current assets     277,787       275,725  
    Property and equipment, net     650       729  
    Capitalized software development costs, net     5,398       5,386  
    Operating lease right-of-use assets, net     3,680       3,878  
    Contract assets     11,202       5,094  
    Other assets     5,506       5,556  
    Total assets   $ 304,223     $ 296,368  
    Liabilities and stockholders’ equity        
    Current liabilities        
    Accounts payable   $ 352     $ 953  
    Accrued expenses     7,598       5,166  
    Current portion of debt     7,500       7,500  
    Third-party claims administration liability     10,660       10,797  
    Current portion of excess profit share receipts     17,445       19,346  
    Other current liabilities     1,143       3,490  
    Total current liabilities     44,698       47,252  
    Long-term debt, net of deferred financing costs     130,429       132,217  
    Operating lease liabilities     3,061       3,273  
    Excess profit share receipts     39,111       28,210  
    Other liabilities     7,095       7,329  
    Total liabilities     224,394       218,281  
    Stockholders’ equity        
    Preferred stock, $0.01 par value; 10,000,000 shares authorized and none issued and outstanding            
    Common stock, $0.01 par value; 550,000,000 shares authorized, 128,198,185 shares issued and 119,782,899 shares outstanding as of March 31, 2025 and 128,198,185 shares issued and 119,350,001 shares outstanding as of December 31, 2024     1,282       1,282  
    Additional paid-in capital     497,884       502,664  
    Accumulated deficit     (328,142 )     (328,759 )
    Treasury stock at cost, 8,415,286 shares at March 31, 2025 and 8,848,184 shares at December 31, 2024     (91,195 )     (97,100 )
    Total stockholders’ equity     79,829       78,087  
    Total liabilities and stockholders’ equity   $ 304,223     $ 296,368  
    OPEN LENDING CORPORATION
    Consolidated Statements of Operations
    (Unaudited)
    (In thousands, except per share data)
     
        Three Months Ended March 31,
          2025       2024  
    Revenue        
    Program fees   $ 15,210     $ 14,309  
    Profit share     6,730       13,882  
    Claims administration and other service fees     2,453       2,554  
    Total revenue     24,393       30,745  
    Cost of services     6,084       5,750  
    Gross profit     18,309       24,995  
    Operating expenses        
    General and administrative     10,898       11,979  
    Selling and marketing     4,382       4,214  
    Research and development     2,267       1,479  
    Total operating expenses     17,547       17,672  
    Operating income     762       7,323  
    Interest expense     (2,589 )     (2,770 )
    Interest income     2,500       2,971  
    Income before income taxes     673       7,524  
    Income tax expense     56       2,437  
    Net income   $ 617     $ 5,087  
    Net income per common share        
    Basic   $ 0.01     $ 0.04  
    Diluted   $ 0.01     $ 0.04  
    Weighted average common shares outstanding        
    Basic     119,451       118,926  
    Diluted     119,629       119,416  
    OPEN LENDING CORPORATION
    Consolidated Statements of Cash Flows
    (Unaudited)
    (In thousands)
     
        Three Months Ended March 31,
          2025       2024  
    Cash flows from operating activities        
    Net income   $ 617     $ 5,087  
    Adjustments to reconcile net income to net cash provided by (used in) operating activities:        
    Share-based compensation     1,846       1,854  
    Depreciation and amortization     544       372  
    Amortization of debt issuance costs     103       107  
    Non-cash operating lease cost     198       162  
    Deferred income taxes           2,154  
    Other     144       41  
    Changes in operating assets & liabilities:        
    Accounts receivable, net     (495 )     (1,135 )
    Contract assets, net     (14,778 )     (2,614 )
    Excess profit share receipts     9,000        
    Other current and non-current assets     70       188  
    Accounts payable     (600 )     66  
    Accrued expenses     2,454       (189 )
    Income tax receivable, net     39       3,358  
    Operating lease liabilities     (185 )     (152 )
    Third-party claims administration liability     (137 )     1,662  
    Other current and non-current liabilities     (2,658 )     45  
    Net cash provided by (used in) operating activities     (3,838 )     11,006  
    Cash flows from investing activities        
    Purchase of property and equipment     (45 )      
    Capitalized software development costs     (561 )     (642 )
    Net cash used in investing activities     (606 )     (642 )
    Cash flows from financing activities        
    Payments on term loans     (1,875 )     (938 )
    Shares withheld for taxes related to restricted stock units     (758 )     (1,021 )
    Net cash used in financing activities     (2,633 )     (1,959 )
    Net change in cash and cash equivalents and restricted cash     (7,077 )     8,405  
    Cash and cash equivalents and restricted cash at the beginning of the period     253,924       246,669  
    Cash and cash equivalents and restricted cash at the end of the period   $ 246,847     $ 255,074  
    Supplemental disclosure of cash flow information:        
    Interest paid   $ 2,489     $ 3,541  
    Income tax paid (refunded), net     16       (3,075 )
    OPEN LENDING CORPORATION
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (Unaudited)
    (In thousands, except margin data)
     
        Three Months Ended March 31,
          2025       2024  
    Net income   $ 617     $ 5,087  
    Non-GAAP adjustments:        
    Interest expense     2,589       2,770  
    Income tax expense     56       2,437  
    Depreciation and amortization expense     544       372  
    Share-based compensation     1,846       1,854  
    Total adjustments     5,035       7,433  
    Adjusted EBITDA   $ 5,652     $ 12,520  
    Total revenue   $ 24,393     $ 30,745  
    Adjusted EBITDA margin     23 %     41 %

    The MIL Network

  • MIL-OSI: Alto Ingredients, Inc. Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    – Beverage-grade Liquid CO2 Processor Acquisition and Corporate Reorganization Deliver Improved Year-over-Year Gross Margin and Adjusted EBITDA –

    PEKIN, Ill., May 07, 2025 (GLOBE NEWSWIRE) — Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter ended March 31, 2025.

    Bryon McGregor, President and Chief Executive Officer of Alto Ingredients said, “During the first quarter of 2025, gross margin and Adjusted EBITDA improved year-over-year, reflecting our operational uptime and carbon optimization initiative driven by our recent acquisition. Owning Alto Carbonic, the carbon dioxide processing plant adjacent to our Columbia facility, lowered combined costs, improved operations coordination and increased productivity across the facilities. The rightsizing of our company to align with our current footprint is on track to save approximately $8 million annually beginning in the second quarter of 2025, and the reorganization is yielding additional efficiencies.

    “Shifting production to ISCC renewable fuel for delivery into European markets, which is experiencing solid demand at a premium to fuel-grade ethanol, demonstrates Pekin’s flexibility to capitalize on trends. As a result, we grew ISCC sales as a percentage of our total renewable fuel volume sold at our Pekin Campus during the first quarter and partially offset the domestic industry softening of premiums on high quality alcohol and essential ingredients. We are monitoring a few positive movements, such as the growing state, and potentially national, year round adoption of E15 as well as opportunities under the Illinois Clean Transportation Standard Act (SB41). Our team is proactively evaluating alternatives for new revenue streams to leverage our flexible and unique facilities, and to drive long-term sustainable shareholder value.”

    Financial Results for the Three Months Ended March 31, 2025 Compared to 2024

    • Net sales were $226.5 million, compared to $240.6 million.
    • Cost of goods sold was $228.3 million, compared to $243.0 million.
    • Gross loss was $1.8 million, compared to a gross loss of $2.4 million. Net realized gains on derivatives were negligible for both quarters.
    • Selling, general and administrative expenses were $7.2 million, compared to $7.9 million.
    • Interest expense was $2.7 million, compared to $1.6 million.
    • Net loss attributable to common stockholders was $12.0 million, or $0.16 per share, compared to $12.0 million, or $0.17 per share.
    • Adjusted EBITDA was negative $4.4 million, including $1.6 million in unrealized gains on derivatives, compared to negative $7.1 million, including $3.2 million in unrealized gains on derivatives.

    Cash and cash equivalents were $26.8 million at March 31, 2025, compared to $35.5 million at December 31, 2024. At March 31, 2025, the company’s borrowing availability was $76.7 million including $11.7 million under the company’s operating line of credit and $65.0 million under its term loan facility, subject to certain conditions.

    First Quarter 2025 Results Conference Call
    Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, May 7, 2025, and will deliver prepared remarks via webcast followed by a question-and-answer session.

    The webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, to receive a number and unique PIN by email, register here. To dial directly up to twenty minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Wednesday, May 7, 2025, through 8:00 p.m. Eastern Time on Wednesday, May 14, 2025. To access the replay, please dial (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 8723820.

    Use of Non-GAAP Measures
    Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company’s performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

    About Alto Ingredients, Inc.
    Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.

    Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
    Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ projected outlook and future performance, including the timing and effects of its business rationalization, right-sizing and other cost savings initiatives; expectations around the growing state, and potentially national, adoption of E15 and opportunities under new legislation, including the Illinois Clean Transportation Standard Act; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints, including from tariffs; Alto Ingredients’ ability to timely and fully realize the results of its cost saving initiatives; regulatory developments and Alto Ingredients’ ability to successfully pursue and secure opportunities under existing and new legislation. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2025.

    Company IR and Media Contact:
    Michael Kramer, Alto Ingredients, Inc., 916-403-2755
    Investorrelations@altoingredients.com

    IR Agency Contact:
    Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777
    altoinvestor@allianceadvisors.com

       
    ALTO INGREDIENTS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited, in thousands, except per share data)
       
      Three Months Ended
    March 31,
        2025       2024  
    Net sales $ 226,540     $ 240,629  
    Cost of goods sold   228,347       243,029  
    Gross loss   (1,807 )     (2,400 )
    Selling, general and administrative expenses   (7,190 )     (7,932 )
    Loss from operations   (8,997 )     (10,332 )
    Interest expense, net   (2,729 )     (1,634 )
    Other income, net   47       241  
    Loss before provision for income taxes   (11,679 )     (11,725 )
    Provision for income taxes          
    Net loss $ (11,679 )   $ (11,725 )
    Preferred stock dividends $ (312 )   $ (315 )
    Net loss attributable to common stockholders $ (11,991 )   $ (12,040 )
    Net loss per share, basic and diluted $ (0.16 )   $ (0.17 )
    Weighted-average shares outstanding, basic and diluted   73,836       72,766  
                   
     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands, except par value)
     
    ASSETS   March 31, 2025       December 31, 2024  
    Current Assets:      
    Cash and cash equivalents $ 26,778     $ 35,469  
    Restricted cash   393       742  
    Accounts receivable, net   65,461       58,217  
    Inventories   50,609       49,914  
    Derivative instruments   4,071       3,313  
    Other current assets   6,149       5,463  
    Total current assets   153,461       153,118  
    Property and equipment, net   212,624       214,742  
    Other Assets:        
    Right of use operating lease assets, net   19,416       20,553  
    Intangible assets, net   8,142       4,509  
    Other assets   8,566       8,516  
    Total other assets   36,124       33,578  
    Total Assets $ 402,209     $ 401,438  
                   
     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    (unaudited, in thousands, except par value)
     
    LIABILITIES AND STOCKHOLDERS’ EQUITY   March 31, 2025       December 31, 2024  
    Current Liabilities:      
    Accounts payable $ 17,029     $ 20,369  
    Accrued liabilities   23,819       24,214  
    Current portion – operating leases   4,968       4,851  
    Derivative instruments   301       1,177  
    Other current liabilities   6,999       7,193  
    Total current liabilities   53,116       57,804  
           
    Long-term debt   110,664       92,904  
    Operating leases, net of current portion   15,641       16,913  
    Other liabilities   8,868       8,754  
    Total Liabilities   188,289       176,375  
     
    Stockholders’ Equity:  
    Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of March 31, 2025 and December 31, 2024 Series B: 927 shares issued and outstanding as of March 31, 2025 and December 31, 2024   1       1  
    Common stock, $0.001 par value; 300,000 shares authorized; 76,497 and 76,565 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   77       77  
    Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2025 and December 31, 2024          
    Additional paid-in capital   1,045,024       1,044,176  
    Accumulated other comprehensive income   4,975       4,975  
    Accumulated deficit   (836,157 )     (824,166 )
    Total Stockholders’ Equity   213,920       225,063  
    Total Liabilities and Stockholders’ Equity $ 402,209     $ 401,438  
                   
     Reconciliation of Adjusted EBITDA to Net Loss Three Months Ended
    March 31,
    (in thousands) (unaudited)             2025       2024  
    Net loss $ (11,679 )   $ (11,725 )
    Adjustments:    
    Interest expense   2,729       1,634  
    Interest income   (84 )     (175 )
    Unrealized derivatives gains   (1,634 )     (3,190 )
    Acquisition-related expense         675  
    Depreciation and amortization expense   6,266       5,728  
    Total adjustments   7,277       4,672  
    Adjusted EBITDA $ (4,402 )   $ (7,053 )
     
    Segment Financials
    (in thousands) (unaudited)
      Three Months Ended
    March 31,
        2025       2024  
    Net sales              
    Pekin Campus production, recorded as gross:              
    Alcohol sales $ 107,234     $ 108,350  
    Essential ingredient sales   44,618       46,709  
    Intersegment sales   297       321  
    Total Pekin Campus sales   152,149       155,380  
    Marketing and distribution:              
    Alcohol sales, gross $ 48,997     $ 54,431  
    Alcohol sales, net   61       34  
    Intersegment sales   2,506       2,752  
    Total marketing and distribution sales   51,564       57,217  
         
    Western production, recorded as gross:    
    Alcohol sales $ 16,194     $ 20,231  
    Essential ingredient sales   7,808       7,826  
    Intersegment sales   264        
    Total Western production sales   24,266       28,057  
         
    Corporate and other   1,628       3,048  
    Intersegment eliminations   (3,067 )     (3,073 )
    Net sales as reported $ 226,540     $ 240,629  
     
    Cost of goods sold:
    Pekin Campus production $ 155,222     $ 151,112  
    Marketing and distribution   47,650       53,685  
    Western production   25,524       36,517  
    Corporate and other   1,681       2,794  
    Intersegment eliminations   (1,730 )     (1,079 )
    Cost of goods sold as reported $ 228,347     $ 243,029  
           
    Gross profit (loss):      
    Pekin Campus production $ (3,073 )   $ 4,268  
    Marketing and distribution   3,914       3,532  
    Western production   (1,258 )     (8,460 )
    Corporate and other   (53 )     254  
    Intersegment eliminations   (1,337 )     (1,994
    Gross loss as reported $ (1,807 )   $ (2,400
                 
    Sales and Operating Metrics (unaudited)
    (in thousands) (unaudited)
    Three Months Ended
    March 31,
        2025       2024  
    Alcohol Sales (gallons in millions)      
    Pekin Campus renewable fuel gallons sold   32.6       31.8  
    Western production renewable fuel gallons sold   8.3       11.2  
    Third party renewable fuel gallons sold   24.4       29.7  
    Total renewable fuel gallons sold   65.3       72.7  
    Specialty alcohol gallons sold   24.3       26.3  
    Total gallons sold   89.6       99.0  
           
    Sales Price per Gallon      
    Pekin Campus $ 1.90     $ 1.90  
    Western production $ 1.95     $ 1.80  
    Marketing and distribution $ 2.01     $ 1.83  
    Average sales price per gallon $ 1.93     $ 1.86  
           
    Alcohol Production (gallons in millions)      
    Pekin Campus   54.3       53.6  
    Western production   8.3       9.7  
    Total   62.6       63.3  
           
    Corn Cost per Bushel      
    Pekin Campus $ 4.65     $ 4.73  
    Western production $ 5.95     $ 5.89  
    Total $ 4.81     $ 4.92  
           
    Average Market Metrics    
    PLATTS Ethanol price per gallon $ 1.71     $ 1.56  
    CME Corn cost per bushel $ 4.72     $ 4.35  
    Board corn crush per gallons (1) $ 0.02     $ 0.01  
         
    Essential Ingredients Sold (thousand tons)    
    Pekin Campus:    
    Distillers grains   90.7       87.7  
    CO2   45.3       39.1  
    Corn wet feed   34.5       25.6  
    Corn dry feed   23.8       18.9  
    Corn oil and germ   19.6       17.8  
    Corn meal   9.4       8.3  
    Syrup and other   8.2       9.5  
    Yeast   6.4       5.7  
    Total Pekin Campus essential ingredients sold   237.9       212.6  
         
    Western production:    
    Distillers grains   58.1       71.8  
    CO2   12.6       13.3  
    Syrup and other   0.8       14.2  
    Corn oil   1.4       1.5  
    Total Western production essential ingredients sold   72.9       100.8  
         
    Total Essential Ingredients Sold   310.8       313.4  
         
         
    Essential ingredients return % (2)    
    Pekin Campus return   48.0 %     52.1 %
    Western production return   49.0 %     39.3 %
    Consolidated total return   48.2 %     49.8 %
         

    ________________

    (1)  Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
    (2)  Essential ingredients revenues as a percentage of total corn costs consumed.

    The MIL Network

  • MIL-OSI: Fortinet Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Highlights

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

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

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

    Financial Highlights for the First Quarter of 2025

    • Revenue: Total revenue was $1.54 billion for the first quarter of 2025, an increase of 13.8% compared to $1.35 billion for the same quarter of 2024.
    • Product Revenue: Product revenue was $459.1 million for the first quarter of 2025, an increase of 12.3% compared to $408.9 million for the same quarter of 2024.
    • Service Revenue: Service revenue was $1.08 billion for the first quarter of 2025, an increase of 14.4% compared to $944.4 million for the same quarter of 2024.
    • Billings1: Total billings were $1.60 billion for the first quarter of 2025, an increase of 13.5% compared to $1.41 billion for the same quarter of 2024.
    • Remaining performance obligations: Remaining performance obligations were $6.49 billion as of March 31, 2025, an increase of 11.7% compared to $5.81 billion as of March 31, 2024. We expect to recognize approximately $3.38 billion as revenue over the next 12 months, an increase of 15.4% compared to $2.93 billion as of March 31, 2024.
    • Unified SASE ARR2: Unified SASE ARR was $1.15 billion as of March 31, 2025, an increase of 25.7% compared to $914.7 million as of March 31, 2024.
    • Security Operations ARR2: Security Operations ARR was $434.5 million as of March 31, 2025, an increase of 30.3% compared to $333.5 million as of March 31, 2024.
    • GAAP Operating Income and Margin: GAAP operating income was $453.8 million for the first quarter of 2025, representing a GAAP operating margin of 29.5%. GAAP operating income was $321.2 million for the same quarter of 2024, representing a GAAP operating margin of 23.7%.
    • Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $526.2 million for the first quarter of 2025, representing a non-GAAP operating margin of 34.2%. Non-GAAP operating income was $386.1 million for the same quarter of 2024, representing a non-GAAP operating margin of 28.5%.
    • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $433.4 million for the first quarter of 2025, compared to GAAP net income of $299.3 million for the same quarter of 2024. GAAP diluted net income per share was $0.56 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.39 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.
    • Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $452.3 million for the first quarter of 2025, compared to non-GAAP net income of $333.9 million for the same quarter of 2024. Non-GAAP diluted net income per share was $0.58 for the first quarter of 2025, based on 776.8 million diluted weighted-average shares outstanding, compared to $0.43 for the same quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding.
    • Cash Flow: Cash flow from operations was $863.3 million for the first quarter of 2025, compared to $830.4 million for the same quarter of 2024. Cash flow from operations for the first quarter of 2025 includes $14.0 million proceeds from an intellectual property matter.
    • Free Cash Flow1: Free cash flow was $782.8 million for the first quarter of 2025, compared to $608.5 million for the same quarter of 2024.

    Guidance

    For the second quarter of 2025, Fortinet currently expects:

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

    For the fiscal year 2025, Fortinet currently expects:

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

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

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

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

    Conference Call Details

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

    Second Quarter 2025 Conference Participation Schedule:

    • J.P. Morgan Global Technology, Media and Communications Conference
      May 13, 2025
    • Bank of America Global Technology Conference
      June 3, 2025

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

    About Fortinet (www.fortinet.com)

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

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

    FTNT-F

    Forward-Looking Statements

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

    Non-GAAP Financial Measures

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

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

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

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

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

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

    FORTINET, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in millions)
     
      March 31,
    2025
      December 31,
    2024
     
    ASSETS                
    CURRENT ASSETS:                
    Cash and cash equivalents $ 3,596.6     $ 2,875.9    
    Short-term investments   1,183.9       1,190.6    
    Accounts receivable—net   1,174.0       1,463.4    
    Inventory   362.7       315.5    
    Prepaid expenses and other current assets   125.4       126.1    
       Total current assets   6,442.6       5,971.5    
    LONG-TERM INVESTMENTS   35.2          
    PROPERTY AND EQUIPMENT—NET   1,403.8       1,349.5    
    DEFERRED CONTRACT COSTS   636.2       622.9    
    DEFERRED TAX ASSETS   1,411.6       1,335.6    
    GOODWILL AND OTHER INTANGIBLE ASSETS—NET   357.4       350.4    
    OTHER ASSETS   120.2       133.2    
    TOTAL ASSETS $ 10,407.0     $ 9,763.1    
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    CURRENT LIABILITIES:                
    Accounts payable $ 224.5     $ 190.9    
    Accrued liabilities   415.0       337.9    
    Accrued payroll and compensation   250.2       255.7    
    Current portion of long-term debt   498.7          
    Deferred revenue   3,339.4       3,276.2    
       Total current liabilities   4,727.8       4,060.7    
    DEFERRED REVENUE   3,079.0       3,084.7    
    LONG-TERM DEBT   496.2       994.3    
    OTHER LIABILITIES   141.1       129.6    
       Total liabilities   8,444.1       8,269.3    
    COMMITMENTS AND CONTINGENCIES                
    STOCKHOLDERS’ EQUITY:                
    Common stock   0.8       0.8    
    Additional paid-in capital   1,668.7       1,636.2    
    Accumulated other comprehensive loss   (22.9 )     (26.1 )  
    Retained earnings (accumulated deficit)   316.3       (117.1 )  
                Total stockholders’ equity   1,962.9       1,493.8    
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 10,407.0     $ 9,763.1    
     
    FORTINET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited, in millions, except per share amounts)
     
      Three Months Ended
     
      March 31,
    2025
      March 31,
    2024
     
    REVENUE:                
    Product $ 459.1     $ 408.9    
    Service   1,080.6       944.4    
          Total revenue   1,539.7       1,353.3    
    COST OF REVENUE:                
    Product   149.9       182.8    
    Service   143.2       121.9    
          Total cost of revenue   293.1       304.7    
    GROSS PROFIT:                
    Product   309.2       226.1    
    Service   937.4       822.5    
          Total gross profit   1,246.6       1,048.6    
    OPERATING EXPENSES:                
    Research and development   198.6       173.0    
    Sales and marketing   542.7       501.1    
    General and administrative   57.8       54.4    
    Gain on intellectual property matters   (6.3 )     (1.1 )  
          Total operating expenses   792.8       727.4    
    OPERATING INCOME   453.8       321.2    
    INTEREST INCOME   44.3       32.2    
    INTEREST EXPENSE   (4.9 )     (5.1 )  
    OTHER INCOME (EXPENSE)—NET   26.1       (2.9 )  
    INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD
    INVESTMENTS
      519.3       345.4    
    PROVISION FOR INCOME TAXES   96.5       39.5    
    GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS   10.6       (6.6 )  
    NET INCOME $ 433.4     $ 299.3    
    Net income per share:                
    Basic $ 0.56     $ 0.39    
    Diluted $ 0.56     $ 0.39    
    Weighted-average shares outstanding:                
    Basic   768.3       762.4    
    Diluted   776.8       770.5    
     
    FORTINET, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in millions)
     
      Three Months Ended
     
      March 31,
    2025
      March 31,
    2024
     
    CASH FLOWS FROM OPERATING ACTIVITIES:                
    Net income $ 433.4     $ 299.3    
    Adjustments to reconcile net income to net cash provided by operating activities:                
             Stock-based compensation   66.1       62.3    
             Amortization of deferred contract costs   78.0       72.0    
             Depreciation and amortization   35.8       28.6    
             Amortization of investment discounts   (10.3 )     (12.2 )  
             Other   (35.5 )     9.9    
             Changes in operating assets and liabilities, net of impact of business combinations:                
                      Accounts receivable—net   303.9       405.6    
                      Inventory   (34.1 )     36.5    
                      Prepaid expenses and other current assets   3.4       (0.1 )  
                      Deferred contract costs   (91.3 )     (66.5 )  
                      Deferred tax assets   (30.0 )     (73.9 )  
                      Other assets   1.5       (6.2 )  
                      Accounts payable   24.6       (61.6 )  
                      Accrued liabilities   63.7       105.0    
                      Accrued payroll and compensation   (8.2 )     (27.4 )  
                      Deferred revenue   57.0       54.8    
                      Other liabilities   5.3       4.3    
                             Net cash provided by operating activities   863.3       830.4    
    CASH FLOWS FROM INVESTING ACTIVITIES:                
    Purchases of investments   (503.0 )     (436.1 )  
    Sales of investments   2.8          
    Maturities of investments   466.9       393.4    
    Purchases of property and equipment   (66.5 )     (221.9 )  
    Payments made in connection with business combinations, net of cash acquired   (11.2 )     (5.7 )  
    Other   0.2          
                             Net cash used in investing activities   (110.8 )     (270.3 )  
    CASH FLOWS FROM FINANCING ACTIVITIES:                
    Proceeds from issuance of common stock   20.2       13.4    
    Taxes paid related to net share settlement of equity awards   (52.9 )     (42.9 )  
    Other         (0.8 )  
                             Net cash used in financing activities   (32.7 )     (30.3 )  
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   0.9       (1.4 )  
    NET INCREASE IN CASH AND CASH EQUIVALENTS   720.7       528.4    
    CASH AND CASH EQUIVALENTS—Beginning of period   2,875.9       1,397.9    
    CASH AND CASH EQUIVALENTS—End of period $ 3,596.6     $ 1,926.3    
     
    Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
    (Unaudited, in millions, except per share amounts)
     
    Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share
     
      Three Months Ended
     
      March 31,
    2025
      March 31,
    2024
     
    Reconciliation of non-GAAP operating income:                
    GAAP operating income $ 453.8     $ 321.2    
    GAAP operating margin   29.5 %     23.7 %  
    Add back:                
        Stock‐based compensation   66.9       63.0    
        Amortization of acquired intangible assets   11.8       3.0    
        Gain on intellectual property matters   (6.3 )     (1.1 )  
    Non‐GAAP operating income $ 526.2     $ 386.1    
    Non‐GAAP operating margin   34.2 %     28.5 %  
                     
    Reconciliation of non-GAAP net income:                
    GAAP net income $ 433.4     $ 299.3    
    Add back:                
        Stock‐based compensation   66.9       63.0    
        Amortization of acquired intangible assets   11.8       3.0    
        Gain on intellectual property matters   (6.3 )     (1.1 )  
        Gain on bargain purchase (a)   (39.9 )        
        Tax adjustment (b)   (2.8 )     (30.3 )  
        Gain from equity method investment (c)   (10.8 )        
    Non-GAAP net income $ 452.3     $ 333.9    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income $ 452.3     $ 333.9    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
        Non-GAAP shares used in diluted net income per share calculations   776.8       770.5    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted $ 0.58     $ 0.43    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Reconciliation of non-GAAP net income per share, diluted                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    GAAP net income per share, diluted $ 0.56     $ 0.39    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Add back:                
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
        Non-GAAP adjustments to net income per share   0.02       0.04    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    Non-GAAP net income per share, diluted $ 0.58     $ 0.43    
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
     
    (a) To exclude a $39.9 million gain on bargain purchase related to our acquisition of Linksys Holdings, Inc. (“Linksys”) in the three months ended March 31, 2025.
    (b) Non-GAAP financial information is adjusted to an effective tax rate of 18% and 17% in the three months ended March 31, 2025 and 2024, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
    (c) To exclude a $10.8 million gain from equity method investment in Linksys resulted from our acquisition of Linksys in the three months ended March 31, 2025.
     
    Reconciliation of net cash provided by operating activities to free cash flow
     
      Three Months Ended
     
      March 31,
    2025
      March 31,
    2024
     
    Net cash provided by operating activities $ 863.3     $ 830.4    
    Less: Purchases of property and equipment   (66.5 )     (221.9 )  
    Less: Proceeds from intellectual property matter   (14.0 )        
    Free cash flow $ 782.8     $ 608.5    
    Net cash used in investing activities $ (110.8 )   $ (270.3 )  
    Net cash used in financing activities $ (32.7 )   $ (30.3 )  
     
    Reconciliation of total revenue to total billings
     
      Three Months Ended
     
      March 31,
    2025
      March 31,
    2024
     
    Total revenue $ 1,539.7   $ 1,353.3    
    Add: Change in deferred revenue   57.5     54.9    
    Less: Deferred revenue balance acquired in business acquisitions       (1.0 )  
    Total billings $ 1,597.2   $ 1,407.2    
     
    Investor Contact: Media Contact:
     
    Aaron Ovadia
    Fortinet, Inc.
    408-235-7700
    investors@fortinet.com
    Michelle Zimmermann
    Fortinet, Inc.
    408-235-7700
    pr@fortinet.com

    The MIL Network

  • MIL-OSI: Compass Diversified Discloses Non-Reliance on Financial Statements for Fiscal 2024 Amid an Ongoing Internal Investigation into its Subsidiary, Lugano Holding, Inc.

    Source: GlobeNewswire (MIL-OSI)

    WESTPORT, Conn., May 07, 2025 (GLOBE NEWSWIRE) — Compass Diversified (NYSE: CODI) (“CODI”) today disclosed non-reliance on its financial statements for fiscal 2024 amid an ongoing internal investigation into its subsidiary, Lugano Holding, Inc. It also announced that it intends to delay the filing of its first quarter 2025 Form 10-Q.

    The Audit Committee of CODI’s Board of Directors promptly launched an investigation after CODI’s senior leadership was made aware of concerns about how Lugano was potentially financing inventory. The investigation, led by outside counsel and a forensic accounting firm, is ongoing but has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices. After discussing with senior leadership and investigators, the Audit Committee of CODI’s Board has concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon.

    Effective May 7, 2025, Lugano’s founder and CEO, Moti Ferder, resigned from all of his positions at Lugano and will not receive any severance compensation. These issues are limited to Lugano, of which CODI owns approximately 60%, and the investigation is not focused on CODI’s other subsidiaries.  

    “The company’s Board of Directors continues to have confidence in CODI leadership and Compass Group Management, the company’s external manager,” said Larry Enterline, Chair of the CODI Board of Directors. “The company’s manager and its employees reacted swiftly and decisively in response to a concern regarding Lugano, elevating it immediately to our Audit Committee. They have been proactively engaged with the Audit Committee and our investigators throughout this process to both accelerate the investigation and work to limit any long-term impact on CODI shareholders.”

    The Board and senior leadership team at CODI are committed to seeing the investigation through and are actively evaluating all available options to preserve value and protect all layers of CODI’s capital structure, including common shareholders.

    “What has been uncovered through the investigation thus far does not reflect who we are as a business and the values we uphold,” said Elias Sabo, CEO of CODI. “Our priority is to support the Audit Committee’s investigation and to fully understand what happened. CODI’s other eight subsidiary companies have strong balance sheets and cash flow, and we are, as always, fully focused on protecting our stakeholders and maximizing value.”

    CODI is a holding company that acquires and actively manages middle-market businesses. With its diverse group of successful businesses, CODI is uniquely structured to withstand downturns and losses at individual subsidiary companies.

    At Lugano, Josh Gaynor, who joined the company in 2024 as President, has been appointed interim CEO. He and Lugano CFO Christoph Pachler, who also joined Lugano in 2024, will step in to handle all of Mr. Ferder’s former responsibilities.

    CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation the CODI’s expectations as to the timing and outcome of the Audit Committee’s investigation, actions taken in response to the outcome of the Audit Committee’s investigation, the future performance of Lugano and CODI’s other subsidiaries, the filing or delay of CODI’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and subsequent periodic reports, the amount of any potential misstatements associated with Lugano and the impact any such misstatements may have on CODI’s previously issued financial statements or results of operations. Such forward looking statements may be identified by, among other things, the use of forward-looking terminology such as “believe,” “expect,” “may,” “could,” “would,” “plan,” “intend,” “estimate,” “predict,” “potential,” “continue,” “should” or “anticipate” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These statements are based on beliefs and assumptions by the Board of Directors and management, and on information currently available to the Board of Directors and management. These statements involve risk and uncertainties that could cause the actual results and outcomes to differ, perhaps materially, including but not limited to: the discovery of additional information relevant to the investigation; the conclusions of the Audit Committee (and timing of those conclusions) concerning matters relating to the investigation; and the timing of the review by, and the conclusions of, CODI’s independent registered public accounting firm regarding the investigation and CODI’s financial statements. Please see CODI’s Annual Report on Form 10-K for the year ended December 31, 2024 for other risk factors that you should consider in connection with such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date such statements have been made. CODI does not undertake any public obligation to update any forward-looking statements to reflect events, circumstances, or new information after the date of this press release, or to reflect the occurrence of unanticipated events.

    Investor Relations
    Compass Diversified
    irinquiry@compassdiversified.com

    Gateway Group
    Cody Slach
    949.574.3860
    CODI@gateway-grp.com

    Media Relations
    Compass Diversified
    mediainquiry@compassdiversified.com

    The IGB Group
    Leon Berman
    212.477.8438
    lberman@igbir.com

    The MIL Network

  • MIL-OSI: Veeco Announces Over $35 Million in Advanced Packaging Lithography System Orders From IDM & OSAT Customers

    Source: GlobeNewswire (MIL-OSI)

    PLAINVIEW, N.Y., May 07, 2025 (GLOBE NEWSWIRE) — Veeco Instruments Inc. (NASDAQ: VECO) today announced its received over $35 million of orders for its AP300™ Lithography systems in recent quarters from a wide-range of IDM and OSAT customers. The orders are expected to be delivered in 2025, and are supporting capacity expansions driven by several end markets, including AI and high-performance computing. Veeco’s Advanced Packaging Lithography business is expected to deliver strong year-over-year growth in 2025.

    Veeco’s AP300™ Lithography systems offer industry-leading performance specifically designed for Advanced Packaging applications, lower total cost of ownership, industry-leading uptime, and process flexibility. Recent orders highlight accelerating market demand for Veeco’s lithography systems given the tools’ ability to handle next generation advanced packaging process needs, such as copper (Cu) pillar for 2.5/3D packaging, flip chip bumping, fan-out WLP (FOWLP) and high-density fan-out packaging.

    “Global megatrends such as AI and high-performance computing are driving strong demand for enabling technologies in advanced packaging,” commented Adrian Devasahayam, Ph.D., Veeco’s Senior Vice President, Product Line Management. “Customers require a lithography platform that can handle a wide range of advanced packaging process needs with best-in-class process capabilities and low cost of ownership. Our AP300 platform is distinguished as a solution that sets the industry standard for challenging advanced packaging processes required for high-performance, next-generation devices.”

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

    To the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks discussed in the Business Description and Management’s Discussion and Analysis sections of Veeco’s Annual Report on Form 10-K for the year ended December 31, 2024 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

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

    The MIL Network

  • MIL-OSI Russia: Steering through the Fog: The Art and Science of Monetary Policy in Emerging Markets

    Source: IMF – News in Russian

    (As prepared for delivery)

    May 7, 2025

    Good afternoon. It is a pleasure to be with you here at this critical juncture for the global economy. Since early April, the US effective tariff rate has increased to levels last seen over a hundred years ago, and the uncertainty surrounding trade policy and geopolitics has surged.

    The economic effects of these developments are expected to be sizeable. Our World Economic Outlook ‘reference scenario’ projects that tariffs will reduce both global and emerging market (EM) output growth by roughly 0.5 percentage points relative to our forecast prior to the April tariffs. Countries imposing high tariffs, or those that are heavily dependent on trade with those countries, will be hit the hardest. But no country is likely to emerge unscathed: we have downgraded our forecasts for 127 countries that account for 86 percent of global GDP.

    The impact on inflation is more varied. For countries facing higher tariffs on their exports, the tariffs are expected to mainly operate as a negative demand shock and exert mild downward pressure on inflation.  For countries imposing much higher tariffs, notably the United States, the tariffs will likely act more as an adverse supply shock, boosting inflation while lowering growth.

    There are several reasons why economic outcomes could be much worse than our WEO reference scenario. As of now financial conditions have not tightened much, including in emerging markets, and many EM currencies have remained surprisingly resilient against the dollar. If, however, trade policy discussions do not yield lower tariffs soon, financial conditions could tighten abruptly, with major effects on capital flows to EMs.  Knightian uncertainty abounds as the global economic order transforms. How should central banks in emerging markets steer through this fog? I will address this question in today’s lecture.

     

    EM central banks have developed much stronger monetary policy frameworks since the late 1990s, often in the context of adopting inflation targeting. They have benefited from major improvements in governance, with clear mandates focused on price stability.  Their operational independence has also increased substantially — both de jure and de facto — and they have strengthened their public accountability, as well as transparency. These advancements were invaluable in helping them respond quickly both to COVID and to the subsequent inflation surge, raising interest rates sharply in the latter case to contain inflation and keep inflation expectations anchored.

    Even so, significant differences remain between EMs and AEs, especially regarding the strength of the exchange rate channel and the degree to which global factors influence monetary transmission. Several features deserve particular attention: 

    Transmission of policy actions and shocks differs in EMs

    First, monetary policy transmission appears noticeably weaker in EMs than in AEs, and dependent both on global financial conditions and on the reliance of EM banks on external financing. In advanced economies, an easing of policy rates quickly translates into lower market rates — which is what matters for the borrowing decisions of households and firms — and this boosts the economy.

    By contrast, my research with Sebnem Kalemli-Özcan and Pierre De Leo (De Leo, Gopinath and Kalemli-Özcan, 2024) shows that when EM central banks loosen policy, the transmission to short-term market rates depends critically on what happens to global financial conditions. If global financial conditions tighten enough – as often follows a surprise tightening in US monetary policy – then domestic market rates may even rise when the EM central bank lowers policy rates.  The implicit rise in the risk spread facing borrowers clearly blunts the effectiveness of monetary policy and makes it harder for EMs to cushion the effects of shocks. This is particularly relevant at the current juncture where trade shocks could play out as negative demand shocks in many EMs, calling for looser monetary policy. At the same time, they could play out as negative supply shocks in the US and call for tighter US monetary policy.

    The changing mix of EM external financing also raises new vulnerabilities. EMs have become more dependent on external financing from foreign nonbank financial institutions, including insurance companies and investment funds, with their share of external portfolio financing growing to about 40 percent. While nonbanks help diversify emerging market funding sources and reduce borrowing costs, these types of capital flows are also very sensitive to the global financial cycle.[1] At times of financial stress, investment funds—such as exchange traded funds and open-end mutual funds in particular—are more susceptible to investors withdrawing their money, which in turn causes investment funds to withdraw from the riskiest markets.  Consequently, the volume and speed of exit of capital flows have increased over time, as was evident at the start of Covid-19.

    This sensitivity of EMs to global stress may also increase given that crypto assets are playing a larger role in cross-border financial intermediation and payments, often spurred by the desire to achieve cost-efficiencies, but also to circumvent capital flow restrictions in some cases.  In most EMs, crypto asset use doesn’t yet appear high enough to present imminent systemic risks.  Even so, crypto assets are growing rapidly in many EMs, and overall usage has become a noticeable share of GDP in some EMs with high inflation and lower macroeconomic stability. For example, Cerutti, Chen and Hengge (2024) find that several EMs in Latin America and Eastern Europe fall in the upper quartile of countries in terms of the magnitude of their bitcoin inflows as a share of GDP, with monthly inflows in the range of 0.1 to 0.8% of GDP. Focusing on a wider set of crypto assets, Cardozo, Fernández, Jiang and Rojas (2024) find that cross-border crypto outflows have reached as much as a quarter of gross portfolio outflows in Brazil.

    Use of crypto requires a careful understanding of the risks.  Crypto may increase capital flow volatility and exacerbate financial stress, including by allowing investors to easily shift their deposits out of domestic banks into foreign exchange-denominated stablecoins.  If crypto flows grow large enough, such disintermediation from the banking system and associated capital outflows could cause financial conditions to tighten and the exchange rate to weaken, and potentially spur a significant economic downturn.

    Weaker policy credibility complicates monetary policy trade-offs

    A second difference between AEs and EMs is the relatively weaker credibility of EM monetary policy to deliver low inflation. While EMs have improved their frameworks substantially, inflation expectations still tend to be less well-anchored than in AEs. Consequently, there is a higher passthrough of cost shocks to inflation, as they feed through much more into inflation expectations as well as through other channels such as wage indexation.  Oil price shocks tend to impact core inflation more than twice as strongly in a sample of emerging market economies, relative to advanced ones.[2] This high passthrough makes dealing with external shocks particularly difficult for EM central banks, as second-round effects could be sizeable, including from ongoing shocks to trade policy that could disrupt supply chains and raise input costs.

    Inflation expectations also tend to be more sensitive to fiscal policy and debt in EMs. This likely reflects increased risks of fiscal dominance and political interference in central bank decisions, which can undermine the public’s confidence in the central bank’s ability to fight inflation. A surprise increase in government debt tends to boost medium-term expected inflation in EMs significantly, while having little effect in advanced economies.[3]

     

    Exchange rates have a much larger imprint on price and financial stability

    A third critical distinction between EMs and AEs is that the exchange rate has a much larger imprint on price and financial stability in EMs.  While passthrough of exchange rate changes to inflation has declined considerably for many EMs, it remains significantly higher than in advanced economies. A 10 percent depreciation of EM currencies against the dollar causes EM price levels to rise by about 2 percent, several times larger than in advanced economies.[4]

    The presence of foreign exchange mismatches increases the financial stability risks from exchange rate depreciation. While many EMs have reduced FX mismatches – or lowered the risk through the development of derivatives markets that allow for better hedging — reliance on dollar funding within the financial system remains an important source of fragility for some EMs. This weakens monetary transmission, as lowering interest rates causes the balance sheets of corporates with unhedged FX liabilities to deteriorate and financial conditions to tighten, which offsets some of the stimulus from easing. EMs that have shifted to relying more on local currency financing also can experience sharp increases in currency premia and local borrowing costs when foreign investors exit these shallow markets. This makes it harder for EMs to deal with an environment of bigger external shocks: even if a tariff abroad would look like a demand shock from the standpoint of an AE economy, the exchange rate depreciation it induces raises risk spreads and makes it harder for the EM central bank to cushion the impact on the economy. 

    Steering through the fog: How should policy respond?

    Having outlined some of the unique challenges emerging market central banks face in the current global context, I will next lay out some broad principles that can help steer through the fog. EMs clearly will differ in how they respond to the shocks and the uncertainty depending on their cyclical conditions and on structural features such as the extent of their exposure to trade and financial disruptions.

    This said, and despite the fog, EM central banks should respond forcefully to upside inflation risks if they materialize to ensure that high inflation does not get embedded into inflation expectations. While I’ve noted that we see the current configuration of tariffs as likely to be slightly disinflationary for many EMs in our reference scenario, there is a significant risk that inflationary pressures could emerge — from supply chain disruptions and higher input cost pressures in a fragmenting world or from exchange rate depreciations. 

    Given the high passthrough of both exchange rate changes and cost shocks to inflation in EMs, a major risk is large and persistent second round effects, especially if inflation has been running persistently above target and the fiscal position is weak. History has shown that once inflation becomes embedded in expectations—often through wage and price indexation mechanisms—it becomes significantly more difficult to reverse. If the risk materializes, timely and firm action is critical to keep inflation expectations anchored and reassure the public of the central bank’s unwavering commitment to sound monetary policy and price stability.

    Foreign exchange intervention should be used prudently

    Second, in a more turbulent external environment, foreign exchange intervention (FXI) can help address disorderly market conditions that undermine financial stability. The Fund’s Integrated Policy Framework is helpful in identifying conditions when it may be possible to improve tradeoffs facing central banks using FXI and other tools (IMF, 2023; Basu, Boz, Gopinath, Roch and Unsal, 2023).

    Notably, central banks can reduce exchange rate pressures by selling FX during episodes of capital flight when FX markets are shallow, allowing central banks not to have to hike policy rates sharply. This can improve macroeconomic outcomes as well as lower financial stability risks.

    However, it is important that FXI is not used to reduce exchange rate volatility per se, or to target a particular level of the exchange rate, as such misuse could easily weaken confidence in the central bank’s commitment to stabilizing inflation.  Moreover, given the finite level of reserves, the bar for FXI should be high to ensure that FX liquidity can be provided when it is really needed. As of now financial conditions have tightened in an orderly manner, which means that when it comes to FXI the advice is to keep the powder dry.

    Build financial and fiscal resilience

    Third, efforts to build financial resilience through strengthening prudential policies are also desirable. As I have emphasized, EM financial systems remain quite exposed to geopolitical shocks and face growing risks from heightened external finance from foreign nonbanks and potentially crypto. Prudential policies can help them build adequate buffers as well as reduce vulnerabilities arising from high leverage, volatile capital flows, and FX mismatches. On the crypto side, it will be important to develop comprehensive legal, regulatory and supervisory frameworks for crypto assets, including through cooperative global efforts given their cross-border nature (IMF, 2023b).  The authorities should also ensure that capital flow management measures, when appropriate, remain effective and not undermined by the use of crypto.  And EMs should continue to strengthen macroeconomic frameworks to reduce the risk of currency and asset substitution into crypto assets (often called “cryptoization”).

    Fiscal policy also plays a critical role in helping ensure macroeconomic stability. Uncertainty shocks have much bigger effects on sovereign spreads when EM debt servicing costs are relatively high. Ensuring that tax and spending policies adjust to keep debt on a sustainable path helps provide buffers to respond to downturns and lowers financial stability risks.

    Improve central bank communication, governance, and policy strategy

    Lastly, there is a high premium on further strengthening policy frameworks to continue building resilience in a more shock-prone environment. 

    Clarity of communication has become more critical than ever. Effective communication about the central bank’s reaction function –in qualitative terms – is likely to be useful in helping better anchor inflation expectations and thus improve tradeoffs.

    Improved governance – including to strengthen central bank independence – can increase public confidence that the central bank will have latitude to achieve its objectives. Central banks will inevitably make mistakes—no forecast is perfect. But what must be clear is that any deviation from target is the result of uncertainty, not political interference.

    EM central banks, as for their AE counterparts, must also adapt their policy strategies to focus more on the distribution of outcomes rather than the modal outlook, and to take more account of risk management considerations. Monetary policy must navigate a world shaped by a multiplicity of shocks—some persistent, some temporary, and some with offsetting effects on inflation where it is difficult to assess the net impact.

    Accordingly, many central banks should continue to take steps to revise their frameworks to move away from excessive reliance on central forecasts. This can be facilitated by increasing use of scenario analysis in decision-making.

    Conclusion

    To conclude, EMs have made major strides in improving their monetary policy frameworks, and this has enabled several of them to respond effectively to unprecedented shocks like the pandemic. They are now being tested again as the global economic order is reset and Knightian uncertainty prevails. This uncertainty does not, however, imply gradualism in all matters. If inflation pressures rise, EM central banks will need to respond quickly using policy rates to prevent higher inflation from getting entrenched as they did during COVID. We must recognize that the road ahead may have many unforeseen turns, which calls for further strengthening financial and fiscal resilience and navigating with monetary policy clarity, credibility, and discipline.

    References

    Baba, C., and J. Lee. 2022. “Second-round effects of oil price shocks – implications for Europe’s inflation outlook”. IMF Working Paper no. 2022/173.

    Basu, S.S., Boz, E., Gopinath, G., Roch, F., and F.D. Unsal. 2023. “Integrated monetary and financial policies for small open economies”. IMF Working Paper no. 2023/161.

    Brandão-Marques, L., Casiraghi, M., Gelos, G., Harrison, O., and G. Kamber. 2024. “Is high debt constraining monetary policy? Evidence from inflation expectations”. Journal of International Money and Finance 149(C).

    Brandão-Marques, L., Górnicka, L., and G. Kamber. 2023. “Exchange rate fluctuations in advanced and emerging economies: Same shocks, different outcomes”, in Shocks and Capital Flows, edited by Gaston Gelos and Ratna Sahay, IMF.

    Cardozo, P., Fernández, A., Jiang, J., and F.D. Rojas. 2024. “On cross-border crypto flows: Measurement, drivers, and policy implications“. IMF Working Paper no. 2024/261.

    Cerutti, E.M., Chen, J., and M. Hengge. 2024. “A primer on Bitcoin cross-border flows: Measurement and drivers“. IMF Working Paper no. 2024/85.

    Chari, A. 2023. “Global risk, non-bank financial intermediation, and emerging market vulnerabilities”. Annual Review of Economics 15: 549-572.

    De Leo, P., Gopinath, G., and S. Kalemli-Özcan. 2024. “Monetary policy and the short-rate disconnect in emerging economies”. NBER Working Paper no. 30458.

    IMF. 2023. “Integrated Policy Framework – Principles for use of foreign exchange interventions”. IMF Policy Paper no. 2023/061.

    IMF. 2023b. “Elements of effective policies for crypto assets”. IMF Policy Paper no. 2023/004.

    https://www.imf.org/en/News/Articles/2025/05/07/sp050725-science-of-monetary-policy-in-emerging-markets-gita-gopinath

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI USA: VIDEO: After Pressure from Pressley, Treasury Secretary Says Ending Tariffs on Essential Baby Products “Under Consideration”

    Source: United States House of Representatives – Congresswoman Ayanna Pressley (MA-07)

    Pressley Slammed Trump’s Chaotic Tariff War, Highlighted Harmful Impact on Families With Babies and Young Children

    Video (YouTube)

    WASHINGTON – In a House Financial Services Committee hearing, Congresswoman Ayanna Pressley (MA-07) pressed Treasury Secretary Scott Bessent about the harmful impact of Trump’s tariffs on families with young children and asked if he would support an exemption to tariffs on baby products and other items that parents need to care for their kids, such as car seats. In response to her sharp questioning, Secretary Bessent conceded that such an exemption was “under consideration.”

    Congresswoman Pressley also underscored the harm felt by small business owners, parents, and other constituents in the Massachusetts 7th who are dealing with rising costs due to Trump’s tariffs and urged the Trump Administration to immediately reverse course.

    Last month, Congresswoman Pressley joined 45 colleagues in sending a Congressional letter to the Trump Administration imploring them to end tariffs on essential baby goods.

    A full transcript of her line of questioning is available below and the full video is available here.

    Transcript: After Pressure from Pressley, Treasury Secretary Says Ending Tariffs on Essential Baby Products “Under Consideration”
    House Financial Services Committee
    May 7, 2025

    REP. PRESSLEY: Secretary Bessent, you have heard from Democrats publicly and I’m certain you’ve heard from Republicans privately that this administration’s reckless and chaotic tariff policy is wreaking havoc on our economy.

    Rather than delivering stability for our country, this Trump tariff tantrum has been inconsistent, counterproductive, and disconnected from reality. 

    In my district, the Massachusetts 7th, I am hearing it from everyone.

    Small business owners are reeling from the unpredictable on-again, off-again tariffs. They’re holding back on expansion, delaying hiring, and bracing for the impact.

    Local and state officials are telling me about the effect tariffs will have on our state budget. Simultaneously, Massachusetts will see energy bills increase while revenue from tourism will decrease.

    But I want to focus on the constituent outreach that I’ve received from everyday families who are just fighting to make ends meet.

    Yes or no. Mr. Secretary, do you know what a car seat is?

    SEC. BESSENT: I have two children, yes. 

    REP. PRESSLEY: I figured as much, it’s correct you and your husband have two children.

    So I am sure you know that car seats are absolutely essential for families when traveling with babies and toddlers to school, to worship, to doctor’s appointments, just everyday living. 

    But not only are car seats essential, they are the law of the land. It’s the law of the land in 50 states. So there’s no getting around that.

    Mr. Secretary, what’s your estimate of how many babies are born in the United States each year?

    SEC. BESSENT: I’m gonna guess 2-3 million. 

    REP. PRESSLEY: Well, while the number fluctuates, there have consistently been more than 3.5 million babies born in the United States. That means millions of families in this country are doing what? Buying a car seat, because it’s essential and it is the law of the land in all 50 states. 

    But now, that cost is going up because Trump has announced up to 145% tariffs on Chinese imported products.

    Approximately, 9 out of every 10 car seats in the U.S. come from China. That’s a steep cost, a steep cost hike for families all over the country. The price is up in Republican districts and in Democratic districts.

    And it’s not just the car seats that are impacted. We’re talking about strollers, cribs, high chairs. No family is exempt from the harm of these Trump tariffs on essential baby products.

    But don’t just take my word for it.

    Mr. Chair, I would like to enter into the record a Yahoo Finance article from May 2025 entitled, “First Year Baby Expenses Already Top $20,000 and Tariffs Are Adding to the Bill As China Dominates Key Imports.”

    CHAIR: Without objection.

    REP. PRESSLEY: Look, I support improving manufacturing in America, but that is not going into effect overnight, like these tariffs are. There needs to be an exemption to help America’s families.

    Trump has used his power for tariff exemptions on thermoplastics, semiconductors, but what about baby products?

    Mr. Secretary, do you support an exemption to tariffs on items that parents need to care for their kids? Yes or no?

    SEC. BESSENT: Congresswoman, what you’re referring to are—

    REP. PRESSLEY: Yes or no.

    SEC. BESSENT: What you’re referring to are–

    REP. PRESSLEY: I’m reclaiming my time because I don’t want you to filibuster and give me some macroeconomic answer. Families at home are hurting … just give me a direct answer. 

    SEC. BESSENT: I am going to agree with you. 

    REP. PRESSLEY: So yes, you do support an exemption on tariffs for products that are essential for families for their babies?

    SEC. BESSENT: We are considering exemptions on E-4 items, which…

    REP. PRESSLEY: I’m sorry I have to reclaim my time. I’m reclaiming my time. 

    Mr. Chair. I am reclaiming my time. Give me my time back. I’m reclaiming my time.

    I just want a simple yes or no: do you support an exemption to tariffs on items that parents need to care for their kids? Because you all claim you’re pro-family.

    I cannot hear the words you say because I see the things that you do, every day. So clear it up.

    Yes or no. Do you support an exemption to tariffs on items that parents need to care for their babies? 

    SEC. BESSENT: It is under consideration. 

    REP. PRESSLEY: Great. Good.

    I don’t know what’s stopping an exemption from going into effect today, so do it now.

    In Donald Trump’s America, yesterday’s price is not today’s price. Costs are going up. Everyone is suffering, especially our families with young children.

    Mr. Secretary, I’m making an appeal to you on behalf of the people of this country. Please tell occupant Trump to reverse course and stop hurting America’s families.

    I yield back.

    ###

    MIL OSI USA News

  • MIL-OSI Video: Operation Restore Justice

    Source: Federal Bureau of Investigation (FBI) (video statements)

    In an unprecedented nationwide operation to protect our children and mark April’s National Child Abuse Prevention Month, the FBI announces Operation Restore Justice, a five-day, sweeping FBI initiative to identify, track, and arrest child sex predators across the country in coordination with all 55 of our FBI field offices.

    —————————————————
    Follow us on social media:
    X: https://twitter.com/fbi
    Facebook: https://facebook.com/FBI
    Instagram: https://instagram.com/fbi
    YouTube: youtube.com/user/fbi

    https://www.youtube.com/watch?v=K1nwTQcuZac

    MIL OSI Video

  • MIL-OSI Russia: Vice Premier of the State Council of China Meets with Chairman of the Management Committee of the Abu Dhabi Sovereign Wealth Fund

    Translation. Region: Russian Federal

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

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

    BEIJING, May 7 (Xinhua) — Chinese Vice Premier He Lifeng met with Majid Al Romaithi, chairman of the governing committee of Abu Dhabi Investment Authority (ADIA), at the Great Hall of the People in Beijing on Wednesday.

    He Lifeng, also a member of the Politburo of the CPC Central Committee, said that since the beginning of this year, China’s economy has made a solid start, high-quality development has made solid progress, and public confidence and expectations have continued to improve.

    The Vice Premier stressed that China will continue to comprehensively deepen reforms and promote high-level opening-up in various fields such as the financial sector. China welcomes foreign financial institutions including ADIA and long-term investors to do business in China and seize the development opportunities, He Lifeng added.

    Majid Al Romaithi, for his part, said that ADIA is optimistic about China’s economic prospects and looks forward to cooperation and exchanges with China in various fields. –0–

    MIL OSI Russia News

  • MIL-OSI USA: Reconciliation Recommendations of the House Committee on Financial Services

    Source: US Congressional Budget Office

    Legislation Summary

    H. Con. Res. 14, the Concurrent Resolution on the Budget for Fiscal Year 2025, instructed the House Committee on Financial Services to recommend legislative changes that would decrease deficits by at least $1 billion over the 2025-2034 period. As part of the reconciliation process, the House Committee on Financial Services approved legislation on April 30, 2025, that would reduce deficits.

    Estimated Federal Cost

    The reconciliation recommendations of the House Committee on Financial Services would, on net, decrease deficits by $5.2 billion over the 2025-2034 period. The estimated budgetary effects of the legislation are shown in Table 1. The costs of the legislation fall within budget functions 370 (commerce and housing credit) and 600 (income security).

    Table 1.

    Estimated Budgetary Effects of Reconciliation Recommendations Title V, House Committee on Financial Services, as Ordered Reported on April 30, 2025

     

    By Fiscal Year, Millions of Dollars

       
     

    2025

    2026

    2027

    2028

    2029

    2030

    2031

    2032

    2033

    2034

    2025-2029

    2025-2034

     

    Decreases in Direct Spending

       

    Budget Authority

    -138

    -527

    -863

    -889

    -933

    -978

    -1,026

    -1,109

    -1,178

    -1,219

    -3,350

    -8,860

    Estimated Outlays

    -16

    -352

    -800

    -926

    -948

    -973

    -1,013

    -1,090

    -1,160

    -1,200

    -3,042

    -8,478

     

    Increases or Decreases (-) in Revenues

       

    Estimated Revenues

    0

    -473

    -724

    -720

    -752

    1,081

    -410

    -427

    -443

    -455

    -2,669

    -3,323

     

    Net Increase or Decrease (-) in the Deficit

    From Changes in Direct Spending and Revenues

       

    Effect on the Deficit

    -16

    121

    -76

    -206

    -196

    -2,054

    -603

    -663

    -717

    -745

    -373

    -5,155

    Basis of Estimate

    For this estimate, CBO assumes that the legislation will be enacted in summer 2025. CBO’s estimates are relative to its January 2025 baseline and cover the period from 2025 through 2034.

    Direct Spending and Revenues

    CBO estimates that enacting the bill would decrease direct spending by $8.5 billion and decrease revenues by $3.3 billion; the deficit would decrease by $5.2 billion over the 2025‑2034 period (see Table 2).

    Green and Resilient Retrofit Program for Multifamily Family Housing

    Section 50001 would rescind the unobligated balances of the Department of Housing and Urban Development’s Green and Resilient Retrofit Program. Using information from the Department of Housing and Urban Development, CBO estimates that enacting the rescission would decrease direct spending by $138 million over the 2025-2034 period.

    Public Company Accounting Oversight Board

    Section 50002 would transfer the authorities of the Public Company Accounting Oversight Board (PCAOB) to the Securities and Exchange Commission (SEC) no later than one year after enactment. At the time of that transfer, the SEC would not be permitted to collect and spend accounting support fees authorized under the Sarbanes-Oxley Act of 2002 that the PCAOB currently collects. Those fees, which fund the board’s activities, are treated as revenues and are available to be spent without further appropriation.

    CBO expects that the board’s authorities would be transferred to the SEC around the end of fiscal year 2026 and that, starting in 2027, accounting support fees would no longer be collected and spent. CBO estimates that eliminating the authority to collect the fees would decrease direct spending by $3.2 billion over the 2027-2034 period.

    Eliminating the fee authority also would reduce collections of fees by $3.3 billion. However, reducing such fees tends to increase taxable income for workers and businesses, leading to increased collections of income and payroll taxes. As a result, CBO expects that the reduction in fee collections would be partially offset by increases in tax receipts of about 25 percent of the gross fee reduction each year. CBO estimates that, on net, revenues would decrease by $2.4 billion over the 2027-2034 period.

    Although CBO anticipates that the SEC would collect fees of similar magnitude to fund those activities, the collection and spending of fees imposed by the SEC are contingent on annual appropriations providing that authority to the agency. CBO has not reviewed this legislation for effects on spending subject to appropriation, so any costs for the SEC to implement the legislation are not included in this estimate.

    Bureau of Consumer Financial Protection

    Section 50003 would decrease the maximum amount that the Consumer Financial Protection Bureau (CFPB) may request from the Federal Reserve each year to cover operating expenses. Under current law, the CFPB may request a transfer of up to 12 percent of the Federal Reserve’s operating expenses from 2009, adjusted for inflation each year beginning in 2013. The provision would reduce the cap to 5 percent of the Federal Reserve’s operating expenses in 2009, adjusted for inflation each year beginning in 2025.

    CBO expects that the new cap would take effect at the beginning of 2026 and that the CFPB will have already received its final quarterly funding from the Federal Reserve for 2025. CBO estimates that enacting the provision would reduce transfers from the Federal Reserve by about $4.2 billion and reduce direct spending by $3.9 billion over the 2026-2034 period.

    The Federal Reserve System transmits its net income to the Treasury as remittances, which are recorded as revenues. Transfers to the CFPB reduce those remittances but are recorded as other miscellaneous receipts in the budget; those two revenue streams net to zero over the 2025-2034 period. Changes in costs for the Federal Reserve banks have historically resulted in changes to remittances during the same year. However, since fiscal year 2023, the central bank has recorded a deferred asset to account for accrued net losses from expenses in excess of income. As a result, remittances have been largely suspended. In CBO’s projections, remittances from the Federal Reserve will generally be suspended until 2030, and most of the changes in costs incurred by the system during that time will not be recorded as a change in remittances until they resume.

    Consumer Financial Civil Penalty Fund

    Section 50004 would prohibit the CFPB from spending amounts in the Civil Penalty Fund for any purpose other than to pay victims of violations of consumer financial law for which penalties have been imposed. Under current law, the CFPB deposits penalties collected from judicial or administrative actions into the Civil Penalty Fund; in addition to paying victims of violations, the CFPB uses those amounts for consumer education and financial literacy programs.

    Under current rules, the CFPB may use amounts associated with one penalty to pay victims associated with another penalty. This provision would effectively prohibit that practice and also would bar the CFPB from spending amounts on consumer education or financial literacy programs. Based on an analysis of the amounts returned to the fund in recent years and using other information from the CFPB, CBO expects that enacting this provision would reduce direct spending by $9 million over the 2025-2034 period.

    Financial Research Fund

    Section 50005 wouldcap assessments collected by the Office of Financial Research (OFR) and deposited into the Financial Research Fund at a three-year moving average of the expenses of the Financial Stability Oversight Council (FSOC). Under current law, the OFR collects assessments from large financial institutions to fund its operations and the operations of the FSOC. Those assessments are recorded as revenues and are available to be spent without future appropriation. CBO estimates that enacting the provision would decrease direct spending on OFR and FSOC activities by $1.2 billion.

    Capping assessments also would reduce revenues by $1.2 billion. However, reducing such fees tends to increase taxable income for workers and businesses, leading to increased collections of income and payroll taxes. As a result, CBO expects that the reduction in fee collections would be partially offset by increases in tax receipts of about 25 percent of the gross fee reduction each year. On net, CBO estimates that revenues would decrease by $906 million under this provision.

    Pay-As-You-Go Considerations

    The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays and revenues that are subject to those pay-as-you-go procedures are shown in Chief, Finance, Housing, and Education Cost Estimates Unit

    Joshua Shakin
    Chief, Revenue Estimating Unit

    Kathleen FitzGerald
    Chief, Public and Private Mandates Unit

    Christina Hawley Anthony
    Deputy Director of Budget Analysis

    H. Samuel Papenfuss 
    Deputy Director of Budget Analysis

    Chad Chirico 
    Director of Budget Analysis

    Phillip L. Swagel

    Director, Congressional Budget Office

    MIL OSI USA News

  • MIL-OSI Security: Charleston Man Sentenced to 12 Years in Prison for Fentanyl Crime and Violating Supervised Release

    Source: Office of United States Attorneys

    CHARLESTON, W.Va. – Tyrece Ramone Phillips, 39, of Charleston, was sentenced today to 12 years in prison, to be followed by five years of supervised release, for conspiracy to possess with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl and for violating supervised release.

    According to court documents and statements made in court, on October 3, 2024, law enforcement officers intercepted a United States Postal Service package addressed to Phillips’ Charleston residence. Investigators obtained and executed a search warrant for the package, and found it continued approximately 538 grams of a substance containing fentanyl.

    Investigators removed the fentanyl substance from the seized package and replaced it with a sham substance. Investigators conducted a controlled delivery of the package to Phillips’ residence on October 4, 2024. The package remained unopened on the front porch of the residence until Phillips arrived later that day. Phillips took the package inside his residence and immediately began to open the package. Investigators executed a search warrant at the residence and found Phillips with the sham substance from the package in his hands in an upstairs bathroom. Investigators also found a scale with residue in the residence during the search. Three teenage children, who also lived at the residence, were present in the house when Phillips was handling the package.

    At the time of this offense, Phillips was serving a term of supervised release resulting from his conviction on March 20, 2019, for distribution of a quantity of acetyl fentanyl and fentanyl. Phillips was sentenced to two years in prison for committing a crime while on supervised release, to run concurrently with today’s sentence of 12 years in prison.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Postal Inspection Service.

    United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney J. Parker Bazzle II prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-177.

    ###

     

    MIL Security OSI

  • MIL-OSI Security: Justice Department Announces Results Of Operation Restore Justice: 205 Child Sex Abuse Offenders Arrested in FBI-Led Nationwide Crackdown, Including 4 in the Western District of New York

    Source: Office of United States Attorneys

    BUFFALO, NY – Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators.  The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.

    “The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”

    “Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”

    “These arrests should send a clear message that, together with our law enforcement partners at all levels, we will track down and prosecute those who target our children,” stated U.S. Attorney Michael DiGiacomo. “Our office will never stop doing all that we can to protect children from these harmful predators.”

    “Operation Restore Justice’ sends a powerful message: the FBI is unwavering and united in its fight to protect our children,” said Matthew Miraglia, the Special Agent-in- Charge of the FBI’s Buffalo Field Office. “These arrests demonstrate the unwavering dedication of the FBI and our law enforcement partners. Our work does not stop here. The FBI is committed to holding predators accountable and pursuing justice for victims.”

    Arrested in the Western District of New York and charged with possession of child pornography are:

    Brian Keith, 68, of Niagara Falls, NY. During the execution of a search warrant on March 13, 2025, at Keith’s residence, Niagara Falls Police officers seized a DVR, laptop, five hard drives and two tablets. A review of the electronic devices recovered images of child pornography. Keith is a registered Level 3 sex offender.

    Matthew Kowalski, 25, of Kenmore, NY. In October 2024, he was sentenced to 10 years’ probation for Possessing a Sexual Performance of a Minor, a New York State Penal Law violation. On April 11, 2025, during an unannounced home visit by Erie County Probation Officers, a cellular phone with an SD card was found, which Kowalski was not permitted to possess. A search of the phone and SD card recovered multiple images and videos of suspected child pornography.

    Samari Thompson, 20, of Buffalo, NY. On November 4, 2024, investigators executed a search warrant at Thompson’s residence, seizing electronic devices, including a cellular telephone. A search of the cell phone recovered 48 images and 16 videos of suspected child pornography. Some of the images and videos depicted infants.

    Jamie R. Anderson, 25, of Buffalo, NY. In January 2022, Anderson was sentenced to 10 years’ probation for Possessing a Sexual Performance of a Minor, a New York State Penal Law violation. On July 3, 2024, the social media application Kik reported to the National Center for Missing and Exploited Children that 13 video and image files of apparent child pornography were uploaded to their server. Subsequent investigation traced the uploaded files to Anderson. The investigation also determined that Anderson was the subject of two other tipline reports.

    Others arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In Minneapolis, for example, a state trooper and Army Reservist was arrested for allegedly producing child sexual abuse material while wearing his uniforms. In Norfolk, VA, an illegal alien from Mexico is accused of transporting a minor across state lines for sex. In Washington, D.C., a former Metropolitan Police Department Police Officer was arrested for allegedly trafficking minor victims.

    In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. For example, a California man was arrested about eight hours after a young victim bravely came forward and disclosed their abuse to FBI agents after an online safety presentation at a school near Albany, N.Y.

    This effort follows the Department’s observance of National Child Abuse Prevention Month in April and underscores the Department’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Department, including the FBI, investigates and prosecutes these crimes every day, April serves as a powerful reminder of the importance of preventing these crimes, seeking justice for victims, and raising awareness through community education.

    The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

    The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.

    The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

    Other online resources:

    Electronic Press Kit

    Violent Crimes Against Children

    How we can help you: Parents and caregivers protecting your kids

    Arrests in the Western District of New York are the result of investigations by the Federal Bureau of Investigation Child Exploitation Task Force, the New York State Police, the Town of Tonawanda Police Department, the Niagara County Sheriff’s Office, the Erie County Probation Department, and the Niagara Falls Police Department.

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

    # # # #

    MIL Security OSI

  • MIL-OSI Security: Hopkinsville, Kentucky Man Sentenced to 30 Years in Federal Prison for Methamphetamine and Fentanyl Trafficking Conspiracy and Money Laundering

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    Paducah, KY – A Hopkinsville, Kentucky man was sentenced yesterday to 30 years in federal prison for his role in a methamphetamine and fentanyl trafficking conspiracy and money laundering. The sentence follows a conviction on all counts after a three-day jury trial earlier this year.

    U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jim Scott of the DEA Louisville Field Division, U.S. Postal Inspector in Charge Lesley Allison of the of the Pittsburgh Division, Special Agent in Charge Karen Wingerd, Cincinnati Field Office, IRS Criminal Investigation, Special Agent in Charge John Nokes of the ATF Louisville Field Division, and Chief Jason Newby of the Hopkinsville Police Department made the announcement.

    According to court documents, Robert Blaine, 46, was sentenced to 30 years in federal prison, followed by 10 years of supervised release, for one count of conspiring to distribute controlled substances and 7 counts of money laundering.

    Blaine was on supervised release for a federal drug trafficking conviction at the time he committed the instant offenses.

    According to court documents and evidence presented at trial, between May 20, 2020, and January 22, 2022, Blaine conspired with Roderick Tutt, 36, of Hopkinsville, Kentucky, and Jessica Ochoa, 40, of Phoenix Arizona, to possess with the intent to distribute over 50 grams of methamphetamine and over 400 grams of a fentanyl mixture. During that time frame, Blaine wired money to Ochoa as payment for the drugs and in furtherance of the overall conspiracy. Blaine also mailed a box containing $36,960 in U.S. currency to Ochoa that he obtained from proceeds of illegal drug sales. On January 21, 2022, Blaine arranged for Tutt to travel to Arizona to pick up fentanyl and methamphetamine from Ochoa. Tutt was supposed to bring the drugs back to Blaine in Hopkinsville. Tutt was arrested on the way back to Hopkinsville with 2,059 fentanyl pills and approximately 8 kilograms of methamphetamine.

    Blaine has previously been convicted of the following drug trafficking crimes.

    On or about June 13, 2008, in Fulton Circuit Court, Blaine was convicted of trafficking in marijuana, greater than 5 pounds.

    On or about January 6, 2009, in Caldwell Circuit Court, Blaine was convicted of first-degree trafficking in a controlled substance – cocaine.

    On or about August 27, 2009, in Christian Circuit Court, Blaine was convicted of first-degree trafficking in a controlled substance – cocaine.

    On or about October 14, 2014, in the United States District Court for the Western District of Kentucky, Paducah Division, Blaine was convicted of three counts of manufacturing, distributing, or dispensing a controlled substance, cocaine.

    Tutt and Ochoa previously pled guilty and were sentenced.

    On March 25, 2025, Tutt was sentenced to 2 years in prison, followed by 3 years of supervised release, for conspiring with Blaine to possess with the intent to distribute over 50 grams of methamphetamine and 400 grams of a mixture and substance containing fentanyl.

    On March 25, 2025, Ochoa was sentenced to 7 years and 4 months in prison, followed by 5 years of supervised release, for conspiring with Blaine to possess with the intent to distribute over 50 grams of methamphetamine and 400 grams of a mixture and substance containing fentanyl and seven counts of money laundering.

    There is no parole in the federal system.   

    This case was investigated by the DEA Paducah Post of Duty, the United States Postal Inspection Service Bowling Green Office, the Internal Revenue Service Criminal Investigation Division Bowling Green Office, the ATF Bowling Green Field Office, and the Hopkinsville Police Department, with assistance from the FBI Louisville Field Division, the Tonto Apache Police Department, the DEA Phoenix Division, and the United States Postal Inspection Service Phoenix Division.   

    Assistant United States Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case with assistance from paralegal Cristy Crockett.

    This case was sentenced under Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.  Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    ###

    MIL Security OSI

  • MIL-OSI Security: Twenty-Eight Month Prison Term for Felon Who Twice Possessed Firearms

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    WASHINGTON – Deionta Person, 27, of the District of Columbia, was sentenced today in U.S. District Court to 28 months in federal prison in connection with being a felon in possession of a firearm, announced U.S. Attorney Edward R. Martin Jr., Special Agent in Charge Sean Ryan of the FBI Washington Field Office Criminal and Cyber Division, Chief Jessica M. E. Taylor of the United States Park Police (USPP), and Chief Pamela Smith of the Metropolitan Police Department (MPD).

    Person pleaded guilty on Jan. 15, 2025, to unlawful possession of a firearm and ammunition by a felon. In addition to the 28-month prison term, U.S. District Court Judge Randolph D. Moss ordered Person to serve three years of supervised release.

    According to court documents, on Sept. 5, 2021, USPP officers observed four individuals, including Person, exit a vehicle and walk towards an apartment complex located in the 2600 block of Douglass Place, SE. As the officers attempted to stop the quartet, Person ran away. At the back of the apartment building on the 2700 block of Douglass Place, Person discarded a black Glock 22 .40 caliber handgun loaded with 21 rounds of ammunition. USPP subsequently recovered this firearm.

    On December 1, 2023, MPD officers observed Person seated in the driver’s seat of a vehicle parked on the 2700 block of Douglas Place, SE. As MPD officers attempted to speak to Person, he fled on foot down the sidewalk and discarded a Glock 30 .45 caliber handgun modified with a machine gun conversion device, loaded with 25 rounds.

    In June of 2018, Person was convicted of robbery in Prince George’s County, Maryland, and sentenced to 15 years in prison with 12 years suspended.

    This case was investigated by the U.S. Park Police and the Metropolitan Police Department  with assistance from the FBI. It is being prosecuted by Assistant U.S. Attorney Jared English with valuable assistance from former Assistant U.S. Attorney Justin Song.

    24cr14

    MIL Security OSI

  • MIL-OSI USA: Capito Urges Administration to Expedite Review Process for Critical Broadband Funding

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito
    WASHINGTON, D.C. – U.S. Senator Shelley Moore Capito (R-W.Va.), a member of the Senate Commerce, Science, and Transportation Committee, sent a letter to U.S. Secretary of Commerce Howard Lutnick asking him to expedite the review and release of updated guidance for the Broadband Equity, Access, and Deployment (BEAD) program and urged that West Virginia not have to redo significant portions of their application.
    The BEAD program, which was created through the Infrastructure Investment and Jobs Act (IIJA) that Senator Capito helped craft, is a federal grant program that aims to get all Americans online by funding partnerships between states or territories, communities, and stakeholders to build infrastructure where we need it to and increase adoption of high-speed internet. In June 2023, Senator Capito announced that West Virginia would receive a significant portion of this funding.
    “I urge you to expedite not only the review and release of updated guidance, but the program as a whole. West Virginians have waited long enough, and I hope with your leadership they will soon have broadband access and this will be President Trump and your greatest accomplishment for rural America,” Senator Capito wrote.
    The full letter can be found HERE or below:
    Dear Secretary Lutnick,
    As we have discussed, one of my top priorities in the Senate has been to get all of West Virginia connected with quality broadband service. The opportunity to get the more than 100,000 unserved locations in West Virginia broadband access is finally here through the Broadband Equity, Access, and Deployment (BEAD) program. The Biden Administration took years and years and burdened states and internet service providers (ISPs) with unnecessary mandates like labor requirements, climate change provisions, and some cumbersome financial requirements and did not connect a single location through BEAD. You can succeed where the previous administration failed and deliver this service quickly and efficiently to millions of Americans primarily in rural areas. 
    West Virginia has been allocated $1.2 billion to connect the state. The BEAD statute specifically says it is to be a technology neutral program. Some states may prefer fiber, others fixed wireless, and others satellite. Whatever technology or combination of technologies works best for the state and serves the most people while staying within the allocated funding amount should move forward. 
    When the BEAD program review was initiated on March 5, my state was 6 weeks away from completing the arduous application process after so many steps including a completed fair project selection process. Removing much of the red-tape from the program in a timely manner, so that my state and all others could move forward even faster, is an ideal outcome. 
    As we have discussed, I am concerned that West Virginia may be told to move back from the 1-yard line to the 40-yard line after the review concludes. Many of the changes that should be made to the program can be made quickly, but as an example, reopening the subgrantee application process for ISPs could delay connecting rural Americans for another year. I also am concerned that an arbitrary one-size-fits-all cost cap could be imposed for each connection. West Virginia is the Mountain State, so connecting us may be inherently more expensive than most every other state. In addition, certain technologies are not feasible in many areas not only due to our challenging topography but also because 78 percent of the state is forested.
    Like you, I am opposed to outlandish costs for a single connection but those decisions should be made with a more tailored approach by the states in consultation with the National Telecommunications and Information Administration. My state is committed to achieving the goals of the program with the utmost efficiency. 
    I urge you to expedite not only the review and release of updated guidance but the program as a whole. West Virginians have waited long enough, and I hope with your leadership they will soon have broadband access and this will be President Trump and your greatest accomplishment for rural America. 
    Sincerely,  

    MIL OSI USA News

  • MIL-OSI USA: Warren Announces Senate Forum on Trump’s Attacks on Education Access, Invites Secretary McMahon to Defend Actions

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    May 07, 2025
    Spotlight forum entitled “Stealing the American Dream: How Trump and Republicans Are Raising Education Costs for Families.”
    Text of Letter (PDF)
    Washington, D.C. – Today, Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, announced that she will host a spotlight forum entitled “Stealing the American Dream: How Trump and Republicans Are Raising Education Costs for Families.” The forum is scheduled for 2:30 p.m. on Wednesday, May 14, 2025, at the Dirksen Senate Office Building in Room G11.
    The latest action in Senator Warren’s Save Our Schools campaign, this forum will examine how both the Trump administration’s attacks on the Department of Education and Congressional Republicans’ legislative plans will increase education costs and limit access to higher education for America’s students and borrowers.
    Senator Warren invited the following witnesses to attend the forum:
    Linda McMahon, Secretary, U.S. Department of Education
    Bonnie Latreille, Former Student Loan Ombudsman, U.S. Department of Education
    Jonathan Glater, Professor of Law & Associate Dean of J.D. Curriculum and Teaching, UC Berkeley School of Law
    Gilberto Gonzalez, Truck Driver, Prime Inc. 
    Tiffany Aliche, Personal Finance Creator, @thebudgetnista
    In a letter to Secretary McMahon, Senator Warren wrote, “Your appearance will provide you with an opportunity to defend the Trump administration’s policies, offer context for your actions to dismantle the Department of Education, and share your vision for ensuring that the American Dream becomes more attainable for all.”
    This forum follows President Trump’s signing of a March 2025 executive order seeking to abolish the Department of Education, and House Republicans advancing legislation last month to slash $351 billion in education spending. 
    Senator Warren has been a leader in the coordinated effort to fight back against President Trump’s attempts to abolish the Department of Education:
    On April 24, 2025, Senator Warren launched a new investigation into the harms of President Trump’s attacks on the Department of Education, seeking information on the impact of the Trump administration’s actions from the members of twelve leading organizations representing schools, parents, teachers, students, borrowers, and researchers.
    On April 10, 2025, following a request led by Senator Warren, the Department of Education’s Acting Inspector General agreed to open an investigation into the Trump administration’s attempts to dismantle the Department of Education.
    On April 2, 2025, Senators Elizabeth Warren and Mazie Hirono, along with Senate Democratic Leader Chuck Schumer, sent a letter to Secretary of Education Linda McMahon regarding the Department of Government Efficiency’s proposed plan to replace the Department of Education’s federal student aid call centers with generative artificial intelligence chatbots.
    On April 2, 2025, Senator Elizabeth Warren launched the Save Our Schools campaign to fight back against the Trump administration’s efforts to dismantle the Department of Education (ED) and highlight the consequences for every student and public school in America.
    On March 27, 2025, Senator Elizabeth Warren (D-Mass.) led a letter to Acting Department of Education Inspector General (IG) René Rocque requesting that the IG conduct an investigation of the Trump Administration’s attempts to dismantle the Department of Education.
    On March 20, 2025, Senators Elizabeth Warren and Bernie Sanders led a letter to Secretary of Education Linda McMahon regarding the Trump Administration’s decision to slash the capacity of Federal Student Aid to handle student aid complaints.
    On February 24, 2025, in a response to Senator Warren, Secretary McMahon gave her first public admission that she “wholeheartedly” agreed with Trump’s plans to abolish the Department of Education.
    On February 11, 2025, Senators Elizabeth Warren and Andy Kim sent Linda McMahon, Secretary-Designate for the U.S. Department of Education, a 12-page letter with 65 questions on McMahon’s policy views in advance of her nomination hearing.

    MIL OSI USA News

  • MIL-OSI USA: WATCH: Senator Reverend Warnock Highlights Wrongly Terminated CDC Employees, Demands Accountability from Senior HHS Nominee

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    WATCH: Senator Reverend Warnock Highlights Wrongly Terminated CDC Employees, Demands Accountability from Senior HHS Nominee

    During a Tuesday Senate Finance Committee hearing, Senator Reverend Warnock questioned Jim O’Neill, the nominee to be Secretary Kennedy’s second in command at the Department of Health and Human Services (HHS)
    Senator Warnock also used the hearing to highlight the unjust firings of thousands of Centers for Disease Control and Prevention (CDC) employees
    The Senator also instructed Gary Andres, the nominee to be an Assistant Secretary of Legislation at HHS, that if confirmed, he would ensure timely answers to Congressional letters – several of Senator Warnock’s letters to HHS have gone unanswered
    The Senator has continued his work to champion to CDC while the agency’s work to protect public health and national security has been under attack from the Trump Administration. The Senator has rallied with fired CDC workers and held then HHS Secretary Nominee Kennedy accountable for his dangerous rhetoric about the centers
    Senator Reverend Warnock: “Yes or no, do you think it is appropriate to fire HHS or CDC, public health experts for ‘performance issues’ who had just gotten positive performance evaluations?”

    Watch Senator Warnock at Tuesday’s Finance Committee hearing HERE
    Washington, D.C. – Yesterday, U.S. Senator Reverend Raphael Warnock (D-GA) demanded answers from Jim O’Neill about the wrongful firings of high-performing public health experts. O’Neill is the nominee to be the Deputy Secretary at the Department of Health and Human Services (HHS). During the Senate Finance Committee hearing, the Senator pressed O’Neil about the unjust firing of Georgia-based Centers for Disease Control and Prevention (CDC) employees.
    “Mr. O’Neill, these folks are my constituents, I know them, they are my neighbors, I bump into them at the grocery store. Many of them had just gotten performance evaluations saying they are doing an outstanding job. Only to be fired weeks later for ‘Performance issues, ’” askedSenator Reverend Warnock. “If confirmed, you’d oversee personnel, yes or no, do you think it is appropriate to fire HHS or CDC, public health experts, for ‘performance issues’ who had just gotten positive performance evaluations?”
    Senator Warnock also took time to address the lackluster transparency at HHS, despite being a part of an administration that claims to prioritize transparency. Senator Warnock has sent several letters to Secretary Kennedy and other leadership at HHS, but none of the letters have been answered.
    “If confirmed to be the primary liaison between HHS and Congress, will you ensure that I finally get a complete and thorough response to this and all of my letters? Will you commit to ensuring that HHS communicates timely and transparently with me and my staff on CDC reorganization plans? The Secretary still hasn’t answered my letter,” Senator Warnock asked Gary Andres who would be the chief liaison between HHS and Congress.
    “Tell the Secretary to answer my letters,” Senator Warnock demanded to conclude his line of questioning.
    During Health and Human Services Secretary Robert F. Kennedy’s nomination hearing in committee, Senator Warnock spoke at length defending the importance of the CDC, which employs over 10,000 hardworking Georgians. Shortly after, the Senator spoke for nearly an hour on the Senate floor, in large part in defense of the CDC’s critical work to defend public health and national security. The Senator has continued to pressure HHS Secretary Kennedy to reverse the CDC firings.
    Since CDC employees became a target of this administration, Senator Warnock has led several efforts defending their employment and the crucial role they play in keeping the nation safe. Earlier this year, Senator Warnock sent a letter to the Acting Director of the CDC about the Pregnancy Risk Assessment Monitoring System (PRAMS), asking for updates on operations. He also sent two additional letters to President Trump and Secretary Kennedy, respectively, urging the administration to reconsider any plans to eliminate the Division of HIV Prevention at the CDC and requesting additional information about the termination of 20,000 full-time staff and organizational restructuring at HHS. Senator Warnock also spoke at a rally organized by current and former CDC employees to support Georgians who have been callously fired from the public health institution. And his staff hosted a round table with fired CDC employees to brainstorm ways to push back on the administration. 
    Watch the Senator’s full remarks and line of questioning HERE.
    See below a full transcript of the exchanges between Senator Warnock and the HHS nominees:
    Senator Reverend Warnock (SRW): “The Centers for Disease Control and Prevention, CDC, is headquartered in Atlanta, Georgia. I am proud to continue the legacy of our great Georgia Senator Johnny Isakson, who made it his mission to champion the important work of CDC when he served on this very committee.”
    “Mr. O’Neill, welcome and congratulations on your nomination. If confirmed as Deputy Secretary of HHS, you would be the number two person to Secretary Kennedy, responsible for the inward-facing operations and day-to-day management of personnel and HHS, including the CDC. But you’d be stepping into an agency that’s mired right now in chaos, following the exodus of 20,000 staff through resignations, unjust firings, including over 3,000 dedicated CDC experts during a historic measles outbreak.”
    “Mr. O’Neill, these folks are my constituents, I know them, they are my neighbors, I bump into them at the grocery store. Many of them had just gotten performance evaluations saying that they were doing an outstanding job. Only to be fired weeks later for “performance issues.” If confirmed, you’d oversee personnel, yes or no, do you think it is appropriate to fire HHS or CDC, public health experts for “performance issues” who had just gotten positive performance evaluations?” 
    Jim O’Neill (JO):“Thank you for the question, Senator. As I said earlier, I had the pleasure of working at HHS for six years in the Bush Administration, and I always enjoyed working with CDC officials…”
    (SRW): “Sir I read your bio and I’m going to run out of time. Do you think it is appropriate to fire these officials who had just got a great evaluation?”
    (JO): “Senator, my understanding of both the proposed organization and RIF (Reeducation in Force) was that the decisions about which personnel should be retained going forward is made by the heads of the operating divisions. I don’t have any inside information on the agency – I believe that the leadership of CDC decided which people should be RIF’d.” 
    (SRW): “Do you think it is appropriate just from an issue of fairness, I’ve talked to these folks one-on-one. CDC workers share with me that they have gotten positive performance evaluations weeks earlier, only to be given notice that they were fired, not only were they given notice that they were fired, but weeks later they get a poor performance evaluation. You’re in charge of personnel. Do you think that’s fair?”
    “Do you think that would be fair, just as someone who has managed personnel, on its face, does that strike you as dealing with people in an honorable way, who are serving our country? Even if you had to fire them, even if you felt like you had to streamline them for whatever reason. Do you think it is fair for someone to get a great performance evaluation and weeks later hear they are doing poorly, even as DOGE says we are dealing with waste?”
    (JO): “Senator, it is always unpleasant to fire people, even if their function is no longer needed or they are not performing…”
    (SRW): “Do you think it is an honorable way of handling people, sir? Yes or no?”
    (JO): “I don’t know the particulars of the situation, perhaps they had a different supervisor the second time.”
    (SRW): “If confirmed, will you commit to restoring the full functionality of each congressionally mandated CDC office that provides life-saving services and programs to the American people? Will you and your staff report directly to this committee on the status of restoring the programs?”
    (JO): “It’s vitally important that every function and responsibility of HHS that’s set out in law be conducted and aimed toward success. If there are two functions that are appropriate that make more sense to be done within the same agency rather than separate agencies, it makes sense to put them together. If they duplicate functions being performed by more than one part of HHS, it makes sense to combine them. That seems to be the philosophy that was stated behind the proposed reorganization. It seems like a reasonable philosophy to me. That does absolutely preserve the essential functions of HHS that you cited.”
    (SRW): “So even as this process – and I think it is charitable to call it a process, it’s been awfully chaotic – even as this ensues, this administration claims its goal is radical transparency. But there has been no transparency around CDC cuts.”
    “In fact, I wrote to the Secretary in March, who I met with in my office, demanding specific information on CDC firings, and I still haven’t gotten a response from the Secretary.”
    “Mr. Andres, if confirmed to be the primary liaison between HHS and Congress, will you ensure that I finally get a complete and thorough response to this and all of my letters? Will you commit to ensuring that HHS communicates timely and transparently with me and my staff on CDC reorganization plans? The Secretary still hasn’t answered my letter.”
    Gary Andres (GA): “Thank you for the question, Senator Warnock. I know that as a top priority for you…”
    (SRW): “It’s a top priority for my constituents.”
    (GA): “…And your constituents, and your staff communicated to me how important CDC and the employees are to you. I will say this, I understand the importance of developing a relationship with trust, of accountability, and getting back to you, and I will commit to work with you on those things.”
    “I think that when we talk about congressional letters, they will vary in terms of their level of complexity, and so it is hard to come up with some specific timeframe. But I understand the importance, I will commit to working with you on those things.” 
    (SRW): “Tell the Secretary to answer my letter!”

    MIL OSI USA News

  • MIL-OSI Security: FBI New Orleans Announces Results of Operation Restore Justice

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    Four individuals from across the state of Louisiana were charged between April 29 and May 2, 2025, during Operation Restore Justice, a nationwide initiative to identify, track, and arrest child predators. The operation coincided with the annual nationwide observance of Child Abuse Prevention Month in April. FBI agents were joined by our partners across the country in arresting 205 subjects and rescuing 115 children during the surge of resources deployed for Operation Restore Justice.

    “The FBI is unwavering in its fight to protect children,” said Jonathan Tapp, special agent in charge of FBI New Orleans. “Each arrest is a powerful testament to the tireless efforts of the FBI and our dedicated law enforcement partners to protect the most vulnerable among us. It reaffirms the FBI’s commitment to pursuing justice for victims and hold predators accountable.”

    “This joint operation signals our unrelenting effort to identify and prosecute those individuals responsible for the sexual exploitation of our nation’s youth,” stated Acting United States Attorney Michael M. Simpson. “Together with our law enforcement partners, our office stands ready and committed to utilizing our collective resources to bring justice to both the victims and the perpetrators of these crimes.”

    “This nationwide effort has made its way to the Western District of Louisiana and the U.S. Attorney’s Office stands ready to join with the FBI and our state and local law enforcement partners to continue this investigation,” said Acting U.S. Attorney Alexander C. Van Hook. “These types of crimes against minor children are reprehensible and we are committed to doing what we can to get these child predators off of our streets.”

    Three of the subjects arrested in Louisiana were charged following a joint undercover operation by the FBI, Alexandria Police Department, and Louisiana State Police. One of those individuals faces federal charges that will be prosecuted by the U.S. Attorney’s Office for the Western District of Louisiana. The other two face state charges that will be prosecuted by the Rapides Parish District Attorney’s Office. The fourth subject was indicted in the Eastern District of Louisiana on five separate counts, including sexual exploitation of children, distributing child sexual material (CSAM), receiving CSAM, and transmitting extortionate interstate communications (see press release from the USAO EDLA).

    The FBI proactively identifies individuals involved in child sexual exploitation and the production of child sexual abuse material through our far-reaching, nationwide network of personnel and law enforcement partners. The Crimes Against Children (CAC) program provides a rapid, proactive, and comprehensive capacity to counter all threats of abuse against children. This capacity leverages partnerships within the FBI’s 89 Child Exploitation Human Trafficking Task Forces (CEHTTFs) across the country. Additionally, the FBI has Intelligence Analysts assigned to address the VCAC threat, both at Headquarters and the field. The FBI also leads a Violent Crimes Against Children International Task Force which includes nearly 100 International Task Force Officers representing over 60 countries to expand our ability to address the threat worldwide. 

    The FBI also partners with the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org. In further partnership and collaboration with NCMEC, the FBI launched the Endangered Child Alert Program (ECAP) in 2004 to identify individuals involved in the sexual abuse of children and the production of child sexual abuse material. To date, ECAP has identified 36 individuals.

    For more information about the crimes investigated by the FBI as well as the variety of resources we provide to protect and keep children safe, please visit:

    Violent Crimes Against Children — FBI

    Parents, Caregivers, Teachers — FBI

    Welcome to sos.fbi.gov — FBI Safe Online Surfing (SOS)

    As always, the FBI urges the public to remain vigilant and report any suspect crime against a child to 911 and local law enforcement immediately, as well as the FBI at 1-800-CALL-FBI (225-5324), online at tips.fbi.gov, or by contacting your local FBI field office.

    Additional Resources

    An electronic press kit that includes an interview with the Darren Cox, the FBI’s Deputy Assistant Director for the Criminal Investigative Division can be found here: FBI DVIDS Page (suggested: “Courtesy: FBI”). The raw interview is designed to be edited by each media outlet for the needs of their media market.

    MIL Security OSI

  • MIL-OSI Security: FBI Announces Local Results of Nationwide Effort to Arrest Child Sex Abuse Offenders

    Source: Federal Bureau of Investigation (FBI) State Crime News

    The Federal Bureau of Investigation has concluded a national surge of resources to arrest accused child sex abuse offenders and combat child exploitation. In a coordinated effort by all 55 FBI field offices called Operation Restore Justice, 205 people were arrested nationwide.

    The FBI Sacramento Field Office arrested four individuals on federal charges as part of this operation. Charges include sexual exploitation of a child and receipt and distribution of child pornography. Eleven additional arrests on state charges resulted from an undercover operation in collaboration with the Bakersfield Police Department Vice Unit to combat human trafficking and solicitation of prostitution in the city of Bakersfield.

    “No child should ever have to suffer at the hands of a predator,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The FBI is committed to breaking the cycle of abuse and ensuring those who exploit children are brought to justice. We work closely with our federal, state, and local law enforcement partners to identify these offenders and to protect the most vulnerable members of our communities.”

    This initiative between April 28 and May 1 was a joint effort with federal, state, and local partners to coincide with the end of Child Abuse Prevention Month and highlight the FBI’s ongoing efforts to confront these crimes. Investigating child sex abuse is an ongoing high-priority mission of the FBI. The FBI’s Violent Crimes Against Children (VCAC) program coordinates and bolsters efforts to counter all threats of abuse and exploitation of children that fall under FBI jurisdiction—including the production, sharing, and possession of child sexual abuse material; domestic or international travel to engage sexually with children; and the extortion of children to provide sexually explicit material of themselves. VCAC also helps to identify, locate, and recover child victims and strengthen partnerships that are critical to prevent abuse and capture offenders.

    The FBI investigates cases through Child Exploitation and Human Trafficking Task Forces (CEHTTFs) located in each field office, allowing the FBI to combine resources with federal, state, and local law enforcement agencies. The FBI also partners with the nonprofit National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24-hour hotline at 1-800-THE-LOST and on missingkids.org.

    In 2004, the FBI created the Endangered Child Alert Program (ECAP) to identify individuals involved in the sexual abuse of children and the production of child sexual abuse material. The program is a collaborative effort between the FBI and NCMEC.

    The FBI also offers resources for parents and caregivers to stay engaged with their children’s online and offline activities. The FBI’s Safe Online Surfing (SOS) program teaches students in grades 3 to 8 how to navigate the web safely.

    To submit a tip about the potential exploitation of a child, call 1-800-CALL-FBI (225-5324), visit tips.fbi.gov, or call your local FBI field office.

    Other online resources:

    Electronic Press Kit

    Violent Crimes Against Children

    How We Can Help You: Parents and Caregivers Protecting your Kids

    MIL Security OSI

  • MIL-OSI Security: Crew of Fentanyl Dealers Indicted in Colorado

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    DENVER – The United States Attorney’s Office for the District of Colorado announces that a grand jury has returned an indictment charging Exor Omar Villanueva Raudales, a/k/a “Brian,” age 36, Alex Yubini Canaca Calix, age 32, Luis Fernando Banega Moncada, age 21, Alejandro Torres Ochoa, age 38, and Juan Carlos Sosa Villanueva, age 34, with possessing with intent to distribute fentanyl on different occasions between June 2024 and April 2025.

    The indictment alleges a series of distinct episodes in which one or more of the defendants distributed fentanyl pills.  Four involved Raudales, who worked with Calix, Moncada, and Villaneuva to execute fentanyl deals. Two involved Ochoa, who executed a deal by himself on one day and with Raudales and Villanueva on another.  The deals involved substantial amounts of fentanyl, a dangerous Schedule II controlled substance.

    Defendants Moncada, Ochoa, and Villanueva – all Honduran nationals without authorization to be in the United States –  had initial appearances in federal court on April 29, 2025.  All have since been detained pending trial after detention hearings in U.S. District Court.  Raudales remains at large.  Calix was unlawfully present and has previously been deported.

    The investigation is being conducted by the Denver Field Office of the FBI, the Denver Field Office of the DEA, ICE Enforcement and Removal Operations, and IRS Criminal Investigation.  The prosecution is being handled by the Transnational Organized Crime and Money Laundering Section of the United States Attorney’s Office.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). 

    The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

    Case Number:  25-cr-00131-CNS

    MIL Security OSI

  • MIL-OSI: authID Announces Closing of $2,100,000 Registered Direct Offering

    Source: GlobeNewswire (MIL-OSI)

    DENVER, May 07, 2025 (GLOBE NEWSWIRE) — authID Inc. (NASDAQ: AUID) (“authID” or the “Company”), a leading provider of biometric identity verification and authentication solutions, announced on May 6, 2025, it entered into a definitive agreement, for a follow on transaction with investors led by Kyle Wool, to sell 373,060 shares of its common stock (the “Shares”), pursuant to a registered direct offering (the “Registered Direct Offering”). The purchase price for one Share will be $5.60. The aggregate gross proceeds from the Offering were approximately $2,100,000 before deducting placement agent fees and other offering expenses.

    The closing of the Registered Direct Offering occurred on May 7, 2025, as all closing conditions have been satisfied.

    Dominari Securities LLC and Madison Global Partners, LLC, acted as Co-Placement Agents for the offering.

    authID intends to use the net proceeds for working capital and general corporate purposes.

    The Shares offered in the Registered Direct Offering were offered by the Company pursuant to a shelf registration statement (Registration No. 333-283580) filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on December 13, 2024. The offering was made only by means of a prospectus supplement and accompanying prospectus. A prospectus supplement and accompanying prospectus relating to the Registered Direct Offering was filed with the SEC and, may be obtained for free on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the Registered Direct offering may be obtained by contacting Madison Global Partners, LLC, Attention: David S. Kaplan, 350 Motor Parkway, Suite 205, Hauppauge, NY 11788, by email at info@madisonglobalpartners.com, or by telephone at (646) 690-0330.

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About authID Inc.

    authID (Nasdaq: AUID) ensures enterprises “Know Who’s Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented biometric identity platform. authID powers biometric identity proofing in 700ms, biometric authentication in 25ms, and account recovery with a fast, accurate, user-friendly experience. With our ground-breaking PrivacyKey Solution, authID provides a 1-to-1-billion false match rate, while storing no biometric data. authID stops fraud at onboarding, blocks deepfakes, prevents account takeover, and eliminates password risks and costs, through the fastest, most frictionless, and most accurate user identity experience demanded by today’s digital ecosystem.

    For more information, please visit authid.ai.

    Media Contacts

    NextTech Communications
    Walter Fowler
    1-631-334-3864
    wfowler@nexttechcomms.com

    Investor Relations Contacts
    Investor-Relations@authid.ai

    Cautionary Statement Regarding Forward-Looking Statements:

    This Press Release includes “forward-looking statements.” All statements other than statements of historical facts included herein are forward-looking statements. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2024, filed at www.sec.gov and other documents filed with the SEC for risk factors which investors should consider. These forward-looking statements speak only as to the date of this release and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based.

    The MIL Network

  • MIL-OSI Economics: Congressional testimony: Supporting American leadership in quantum technology

    Source: Microsoft

    Headline: Congressional testimony: Supporting American leadership in quantum technology

    Editor’s note: On Wednesday, May 7, Dr. Charles Tahan, Partner, Microsoft Quantum, testified before the U.S. House Committee on Science, Space, and Technology. To view the proceedings, please visit the committee’s website.


    Written Testimony of Dr. Charles Tahan
    Partner, Microsoft Quantum, Microsoft Corporation

    U.S. House Committee on Science, Space, and Technology
    “From Policy to Progress: How the National Quantum Initiative Shapes U.S. Quantum Technology Leadership”

    Chairman Babin, Ranking Member Lofgren, and Members of the Committee, thank you for the opportunity to appear before you to discuss the importance of quantum technology and the transformative role it will play for this country and for our collective future.

    It is an honor to be here again. I first appeared before this Committee nearly two years ago. Then, I was Assistant Director of Quantum Information Science and Director of the National Quantum Coordination Office (NQCO), an office within the White House Office of Science and Technology Policy. The NQCO was created in the first Trump Administration by the National Quantum Initiative Act of 2018. Our job was to coordinate the more than 20 agencies led by the Department of Energy, the National Science Foundation, and the National Institute of Standards and Technology, along with the Department of Defense and the Intelligence Community, to develop and execute a national strategy to strengthen American leadership in quantum information science and technology. I spent almost four years in that job, which capped an almost 17-year career as a practicing physicist and technical leader at the National Security Agency and the Defense Advanced Research Projects Agency (DARPA), where I worked on quantum computing, high-performance computing, and other advanced technologies. I now work at Microsoft where I lead technical teams within Microsoft Quantum that are working both internally and with our close partners to build the world’s first useful quantum computers.

    Through my testimony I hope to outline the transformative potential of quantum technology and why the United States must lead and win the quantum race. To provide some context, I will begin by highlighting the revolution in quantum sciences and why quantum matters in the age of artificial intelligence. I then expand on Microsoft’s leadership in this field—both through our own research and through our strategic collaborations with other leaders in the quantum ecosystem. But, despite our tremendous progress, sustaining American leadership requires government action. I therefore offer three focus areas that I believe this Committee and Congress should prioritize: (1) advancing the quantum sciences; (2) developing, attracting, and retaining a skilled quantum workforce; and (3) building a resilient and secure supply chain. Taken together, these strategic actions will not only bolster our nation’s security and competitive edge against competitors and adversaries, but it will also drive innovation and economic growth at home towards a new frontier of American prosperity.

    The Quantum Information Revolution

    I like to think of quantum science as the operating system of the universe. What we physicists call quantum mechanics are essentially the rules that the universe follows at the microscopic level. Over the last 100 years, we have learned a tremendous amount about how those rules work. They appear strange to us because we do not experience them in our daily lives. As we have learned more about these quantum effects, we have been able to leverage them to build new tools and technologies.

    The National Quantum Initiative Act of 2018 recognized that we were on the cusp of a new technological revolution—a quantum information revolution— where we could harness the more advanced and unusual properties of quantum mechanics. This revolution is not just about new research discoveries but also about creating fundamentally new types of information technology like quantum computers, quantum networks, and quantum sensors. The full implications of this shift in quantum information science are unclear, but we do know that maintaining our global technological leadership is critical to sustaining economic prosperity, enhancing our well-being, and safeguarding our national security. We also know this is the first moment in our lifetimes in which we are able to radically reimagine how we build computers. As a country, and as a computing company, we must take that seriously.

    Why Quantum Matters in the Age of AI

    In the two years since my last appearance before this Committee, the world has shifted dramatically. The remarkable rise of AI systems has surprised all of us and increasingly affordable AI capabilities are likely to transform the world even more profoundly than the internet. Despite its immense potential, artificial intelligence—even coupled with the most powerful classical computers today—has limitations. There are problems that AI and classical computing will never be able to solve, not in our lifetimes or even in a hundred lifetimes, because of the fundamental limitations of how they are designed.

    Quantum technology can offer unprecedented capabilities for computing. Consider two quick examples where quantum computers are exponentially faster than anything we could imagine a classical computer could do. The first is code-breaking, which has serious implications to our national security and privacy. A sufficiently large quantum computer could break the public key cryptography systems we now rely on in days or weeks. Even the most powerful classical computer we could ever imagine would take the age of the universe to solve the same problem. That is the power of exponential improvement. And it is why we must move to quantum resistant cryptography as fast as possible.

    The other more commercially relevant application is, quite simply, making things—designing new materials, new chemicals, and new medicines. If you think about what the future holds, what will differentiate nations in an era of intelligence is their ability to create new things using tools that enable them to do so better, faster, and at lower cost. And this is why quantum is so important, not only because it helps us understand the universe as scientists but because it gives us unprecedented capabilities to dramatically improve our lives.

    Microsoft’s Leadership in Quantum

    It is important to appreciate that bringing quantum technology to practical application is hard. It requires focused and sustained investments, sophisticated infrastructure, and the best talent in the world.  It also requires new types of hardware—quantum hardware—and a new quantum technology stack, from chips to the control and readout layers to the user interface. This requires science and innovation at every level. That is what makes developing quantum technology expensive.

    The quantum team at Microsoft has been pursuing quantum computing for over 20 years. Our research program has spanned all three CEOs. We are singularly focused on building quantum computers that are able to solve meaningful problems, like problems in chemistry and material science. To do this, we need quantum computers that can scale to potentially millions of qubits—or quantum transistors—as compared to the small number currently available in prototype systems today. Microsoft has been pursuing this on two fronts: through our decades-long internal research and through strategic collaborations in the quantum ecosystem.

    1. Microsoft’s First-Party Research: The Topological Approach

    Microsoft’s internal hardware effort is based on a unique scientific approach aimed at developing qubits that rely on very novel physics. These are called topological qubits. We think they are promising for quantum computing because they have the potential to make it much easier to scale, meaning to control and enable readout of the millions of qubits needed to develop a useful quantum computer. However, to build even one topological qubit, the team had to take a scientific theory that was first proposed in the 1930s and make it a reality—a feat that included creating a new state of matter and engineering a device in which to exhibit it.

    Earlier this year, Microsoft unveiled new technical results that begin to validate our roadmap toward a topological quantum computer.[1] In addition, Microsoft presented the Majorana 1 chip, which brought together for the first time all the key components, validated individually, that will be needed to build quantum systems that scale: cryogenic electronics, interconnect wiring, and a qubit microchip layout that is compatible with both the physics of topological operation and the limits of control electronics. It is the embodiment of Microsoft’s topological roadmap[2] and the team is proud of it.

    Our approach has been evaluated by the Defense Advanced Research Projects Agency (DARPA), which spent nearly two years vetting Microsoft’s architecture and engineering plan and the unique properties that enable topological qubits to scale.[3] As a result, DARPA selected Microsoft for the final phase of its Underexplored Systems for Utility-Scale Quantum Computing (US2QC) program—one of the programs that makes up DARPA’s larger Quantum Benchmarking Initiative (QBI). To date, the US2QC program has brought together over fifty experts from leading government and academic institutions, including Air Force Research Laboratory, Johns Hopkins University Applied Physics Laboratory, Los Alamos National Laboratory, Oak Ridge National Laboratory, and NASA Ames Research Center, to verify our approach to quantum hardware, software, and applications. DARPA referred to this evaluation as “an incredibly rigorous and deeply technical analysis from what is almost certainly the world’s best quantum computing test and evaluation team.” The final phase of US2QC now envisions the development of a fault-tolerant prototype based on topological qubits—a crucial acceleration step toward making a utility-scale quantum computer a reality.

    Majorana 1 represents the pursuit of hundreds of scientists and engineers over the course of 20 years. Along the way there have been and will continue to be tremendous advances and contributions to the greater field of quantum information science and technology because of this pursuit. And this is why I came to Microsoft—to work on the hardest problems that promise to have an outsized impact for technology and for our society. Technical terms you may not have heard of, such as Topological and Floquet codes, pristine superconductor-semiconductor materials, measurement-based approaches to quantum computing, are all new technologies spun out of this pursuit with implications for many other types of qubits and other types of technologies, even other domains like astronomy. They came about because the Microsoft team found solutions to the hard problems—to the benefit of not only our company, but the entire quantum ecosystem.

    1. Strategic Collaborations

    At its core, Microsoft is a platform company. We want to empower our customers with the best computers in the world, whether they are quantum computers or classical computers, for the applications they care about. While we are excited about the continued advancement and promise of our own topological approach, we have no preference for which qubits ultimately provide our customers with quantum capabilities. We want the system to be the best technology for their use case. This means we develop software for multiple different technologies and layers of the quantum computer stack, everything from AI copilot to quantum languages to the real-time operating system needed to run a quantum computer with millions of moving parts.

    To do this, we work with, invest in, and partner with many different quantum computing technology companies, big and small, to help them make useful quantum computers a reality. We have entered into strategic collaborations with leading quantum hardware startups like Atom Computing, Quantinuum, and Photonic, and others. By applying our industry-leading error-correction and control software to their hardware platforms, we are accelerating the industry’s transition from rudimentary “Level 1” machines that use noisy physical qubits to the world’s first “Level 2” machines that rely on reliable, error-corrected logical qubits, composed of many physical qubits—which make quantum computing more useful for practical applications.

    Our breakthroughs in this area are coming fast. In April 2024, Microsoft and Quantinuum demonstrated the first logical qubits on record that outperform the underlying physical qubits.[4] Five months later, in September 2024, Microsoft and Quantinuum demonstrated 12 logical qubits on Quantinuum’s ion-trap machine, the most reliable logical qubits then on record.[5] Two months later, in November 2024, Microsoft and Atom Computing doubled this feat, creating and entangling 24 logical qubits made from neutral atoms.[6] These breakthroughs led by Microsoft, Atom Computing, and Quantinuum have for the first time moved the quantum industry firmly out of the “Level 1” noisy intermediate-scale quantum (NISQ) era to Level 2 resilient quantum computing. With Atom Computing, we are now offering the world’s first commercially available Level 2 quantum machines. These collaborations enable us to deliver best-in-class logical qubits for our customers today, further cementing Microsoft’s leadership in the quantum ecosystem. But even these “Level 2” systems that aim to provide 1000s of physical qubits will pale to the scale of a true, utility-scale quantum computer powered by a million qubits or more. Getting to this point will require more sustained, large-scale investments in many areas—from talent development to new domestic capabilities to supply chain resilience.

    Winning the Race in Quantum

    While Microsoft has made significant investments in quantum technology, the efforts of individual companies alone are insufficient for the United States to secure the leadership position. Winning the quantum race will not happen without clear-eyed, intentional, and decisive government action. Indeed, these actions will decide whether American global leadership will continue for the rest of this century.

    In his first term, President Trump and Congress laid the foundation for American leadership in the quantum sciences. The passage of the National Quantum Initiative Act (NQIA) was a strong first step in moving from dispersed quantum science initiatives to a more active, coordinated effort to not only lead in the foundational research, but also take scientific breakthroughs through to practical technological innovation.

    As this Committee considers reauthorization of the NQIA and other specific actions that the United States must take to secure our technological leadership in quantum, we offer more detailed recommendations across three policy priorities: (1) robust funding for quantum research, (2) developing top-tier quantum talent, and (3) securing the quantum supply chain. These three categories—described more fully below—require U.S. government leadership to maintain a competitive edge, drive innovation, and safeguard national security in the face of growing global competition.

    1. Advancing Quantum Research

    First, we must continue our long American tradition of leading the world in groundbreaking scientific research. Our curiosity, our ability to innovate, and our desire to build has been responsible for a century of American prosperity. Indeed, the past century of our global leadership is rooted in our ability to not only innovate but innovate first. For quantum, the first-mover advantage is likely to define the geopolitical landscape for the rest of this century – and likely well beyond.

    Last week, Microsoft President and Vice Chair Brad Smith wrote specifically about the critical role of the American research triad—the Department of Defense, the Department of Energy, and the National Science Foundation—in driving American scientific and technological innovation.[7] I will add to that the unique role that the National Institute of Standards and Technology has contributed to quantum information science since the field’s inception. In addition, there have been vital investments by the Intelligence Community’s research funding organizations, who have core missions that demand expertise to monitor progress in quantum information technologies. We must make it a continuing national imperative to energize these institutions—for our economic future, for our national security, and for sustaining our global leadership. The American scientific enterprise is unmatched in the world and there is no private sector substitute. We benefit from multiple institutions that have very different models for how to fund science. This allows the U.S. to fund everything from basic ideas to large, very focused development programs to purchasing novel supercomputers. There is nothing else quite like it in the world.

    Federal funding is the key to leveraging these institutions to sustain our leadership in quantum research and development.  Following passage of the NQIA, U.S. funding for the quantum sciences more than doubled from $456 million in 2019 to $1.041 billion in 2022.[8] But recent years have seen a decline, as reflected in President Biden’s $998 million budget request for FY2025. This has come as our global competitors are doing the opposite. Governments around the world are accelerating spending on quantum R&D – and China’s estimated $15 billion commitment dwarfs publicly reported U.S. funding levels.[9]

    To stay competitive, Congress should not only reauthorize the National Quantum Initiative Act but be purposeful in expanding initiatives through a coordinated national strategy. Key recommendations include:

    • Fully Fund and Expand Quantum Initiatives across the Federal Government: Reauthorize and fully fund the National Quantum Initiative Act and its programs. Congress should ensure agencies like the Department of Energy (DOE) and its National Labs, the National Science Foundation (NSF), the National Institute of Standards and Technology (NIST), and the National Aeronautics and Space Administration (NASA), along with the Department of Defense and the Intelligence Community receive sustained appropriations to expand fundamental quantum science research and development. This includes supporting the NSF’s Quantum Leap Challenge Institutes and the DOE’s National Quantum Information Science Research Centers, which have a proven record of leveraging each federal dollar to attract additional private investment. Expanding these programs will spur innovation nationwide and solidify U.S. leadership in critical quantum technologies.
    • Increase Directed Quantum R&D Funding: Move beyond fragmented funding by adopting a more directed, strategic investment approach. A recent ITIF survey suggests that China’s centralized funding strategy gives it advantages over the diffuse U.S. approach.[10] Congress can consider targeted increases in quantum R&D budgets across key agencies, aiming to exceed past funding peaks and keep pace with competitor nations. Restoring growth in federal quantum R&D funding—particularly after the dip in recent years—is the first and most urgent step to ensure the U.S. does not fall behind.
    • Expand Translational Research Programs: Boost funding for government evaluation and prototype development programs to build a bridge between lab discoveries, engineering initiatives, and real-world applications. For example, DARPA’s Quantum Benchmarking Initiative (QBI)—the flagship program for assessing quantum breakthroughs—should be expanded and fully funded. Congress can direct agencies (DOD, DOE, NSF) to coordinate on identifying high-value quantum research projects and push them toward validation programs (like DARPA’s QBI program) and then to practical realization with additional grants, prizes, or public-private partnerships.
    • Encourage Public-Private Collaboration: Federal investment should be paired with incentives for private sector co-investment in quantum R&D. Each dollar of federal funding often leverages additional private sector investment, so policies like matching grants, or innovation challenges can multiply the impact of public funds. Congress should also support joint research centers and consortia that bring together government, academia, and industry to solve quantum engineering hurdles. In addition, maintaining a stable, long-term funding outlook will give industry the confidence to invest alongside the government in quantum technology development.
    • Provide access to the latest quantum capabilities: Congress should streamline pathways for government agencies to provide the latest quantum computing technology to the researcher community, which would allow them to better identify impactful quantum applications and use cases.

    By significantly increasing federal funding and focusing it strategically, Congress can reinvigorate America’s quantum R&D enterprise. Continued U.S. scientific leadership depends on this commitment and history shows that breakthroughs from federally funded basic research (from the internet to GPS) drive decades of innovation and economic growth. Investing ambitiously in quantum now will pay dividends for American security and prosperity in the years to come.

    2. Developing & Attracting Quantum Talent

    Throughout its history, the United States has developed and attracted the brightest and most innovative minds– and it is what powers Microsoft, the broader American technology sector, and our great academic and research institutions. But this country now faces a severe shortage of STEM talent and, even more critically, a shortage of specialized quantum expertise.

    The global quantum talent pool remains small even as demand increases. It is no exaggeration to say that a handful of gifted physicists, engineers, and mathematicians could sway the balance of power and shift the dynamics in the race to develop quantum technology. Globally, there are as many as three job postings for every one qualified quantum worker.[11] In the U.S., we are struggling to develop our own talent and labor pool. Today the U.S. STEM workforce consists of approximately 36.8 million people, but 43% of doctorate-level scientists and engineers are foreign-born.[12] In 2021, more than half of doctorate-level computer scientists, mathematicians, and engineers working in the United States—occupations directly connected to critical and emerging technologies—were born outside the country.[13] Meanwhile, other countries are sprinting ahead in producing STEM graduates. In 2020, the U.S. awarded roughly 900,000 undergraduate STEM degrees annually, compared to 2 million in China and 2.5 million in India.[14] That gap may have widened in the past five years and today, the European Union leads in quantum talent concentration, with India and China also surpassing the U.S. in the number of quantum-trained specialists. Without a bigger domestic pipeline of quantum talent, even the most well-funded programs will struggle to succeed.

    Congress should enact policies to train, attract, and retain top quantum talent. Important steps include:

    • Strengthen STEM Education at All Levels: Congress must be laser focused on expanding the STEM pipeline from K-12 through to graduate school programs. This includes initiatives through the NSF, as well as state and local partners to enrich science and math curricula and increase awareness and interest in emerging technology. By introducing comprehensive STEM education early (in elementary and secondary schools), we can inspire more students to pursue careers in emerging technology and quantum-related fields.
    • Invest in Higher Education and Training: Congress should also continue and expand initiatives to train the next generation of scientists and engineers. We must continue to fund scholarships, fellowships, and research assistantships, particularly those focused in STEM and specifically in the quantum sciences. This must include developing high-caliber talent at our nation’s premier research institutions through grants and quantum research programs.  It must also include prioritizing community colleges and technical institutes that often launch students into STEM careers. Programs like the NSF’s Research Experiences for Undergraduates (REU) and Research Experiences for Teachers (RET) are critical to engaging more students and providing educators with hands-on quantum projects.  Congress should also increase federal support for STEM graduate students in quantum-related disciplines—currently, only 15% of U.S. full-time STEM grad students are supported by the U.S. government, down from 21% in 2004.[15] Bolstering fellowships and traineeships will produce more Ph.D.-level researchers ready to push the boundaries of quantum science.
    • Retrain and Upskill the Existing Workforce: To meet immediate needs, Congress should also consider activating NSF and the Department of Labor for workforce retraining programs that would help add talent to the quantum ecosystem. Adult education, professional development, and certificate programs in STEM and basic quantum fundamentals can rapidly expand the pool of “quantum-aware” professionals. These efforts will help fill roles in quantum research and product development that do not necessarily require Ph.D.-level expertise but do need specialized training.
    • Attract and Retain Global Talent:  Many of the world’s best minds—in quantum science and across disciplines—come to the U.S. for education and we must continue to find ways to support their continued contributions to our country after graduation. For example, from 2018–2021, temporary visa holders made up 37% of U.S. science and engineering Ph.D. graduates and over 70% of those students intended to stay in the U.S. after graduating.[16]  Congress should create expedited pathways for highly skilled quantum experts and expand the number of visas for Ph.D. graduates in quantum-related fields. Easing green card backlogs for advanced STEM degree holders could help the U.S. retain and attract international talent that would otherwise find opportunities outside the United States.
    • Promote International Collaboration: Congress should encourage collaborative research and exchange programs with allied nations to broaden the talent base within a trusted network. Joint initiatives with allies can pool expertise and resources to collectively train more quantum scientists. By deepening ties with like-minded countries the U.S. can both learn from our allies and ensure that we lead the quantum future together.

    By implementing these measures, the United States can build a robust pipeline of quantum talent. A comprehensive strategy spanning education, training, and international collaboration will equip the U.S. with the skilled workforce needed to drive quantum innovation and outpace global competitors.

    3. Securing the Quantum Supply Chain

    Building a secure and reliable quantum supply chain is essential. Quantum technologies across the board—computing, communication, and sensing—depend on specialized materials and components. This includes hardware like cryogenic refrigerators to advanced lasers and quantum chips. There are currently few suppliers or fabrication facilities for these items and most are globally distributed. This creates a real risk of supply bottlenecks or dependencies on foreign sources, which could stall our R&D progress or even compromise the technology stack. It currently takes 12 to 18 months to get certain components and equipment we need, many of which come from overseas. The U.S. must be able to either build quantum components and devices domestically or have reliable, secure sources through trusted allies. We also need prototyping facilities that are rapid, focused, and work at the pace of industry. However, establishing a resilient supply chain will not happen without focused government action. It is a complex challenge requiring coordination between agencies and partnership with industry. And the need to act is now.

    Congress and the Administration should pursue a national strategy to strengthen the quantum supply chain through the following actions:

    • Develop a National Quantum Supply Chain Strategy: We recommend that the Administration—perhaps via the National Quantum Initiative Advisory Committee or another interagency task force—develop a comprehensive strategy to develop the quantum supply chain. This strategy should identify key supply vulnerabilities, set goals for domestic capacity in quantum-related manufacturing, and provide the Administration with an action plan on how to spur public and private investment for key technology components. Congress may also consider regular reporting on quantum supply chain risks and a roadmap to de-risk dependencies.
    • Diversify Sources of Critical Components: The government should consider using federal purchasing power and funding to ensure multiple reliable sources for essential quantum hardware components. Congress can empower the Department of Commerce and Department of Energy to organize long-term purchase agreements or commit to buying key items (e.g. dilution refrigerators, superconducting amplifiers, high-purity qubit materials, photonic components) in bulk. Strategic investment (such as grants) could also target any chokepoints where the U.S. is overly reliant on foreign suppliers. By deploying capital toward widely needed quantum components, the government can incentivize companies within the United States (or, abroad in partnership with trusted allies) to build expertise and capacity.
    • Establish Quantum Manufacturing Facilities: Congress should also focus on building specialized infrastructure facilities for quantum device fabrication and testing. Building quantum computers and sensors often requires custom fabrication processes (for novel types of qubits, cryogenic electronics, etc.) and advanced packaging techniques. Congress should support the creation of one or more quantum foundries or test beds—perhaps through our National Labs or public-private partnerships—equipped to prototype and produce quantum components at scale. This includes facilities dedicated to fabrication, packaging, and assembly of quantum chips and systems, as well as laboratories for testing cryogenic and photonic components under quantum operating conditions. By investing in such infrastructure, the U.S. will reduce the need to rely on foreign fabrication facilities or suppliers for cutting-edge parts. These centers can also serve as innovation hubs where academia and industry collaborate on next-generation manufacturing techniques for quantum technology.
    • Prioritize Domestic Production of Advanced Components: Congress should create incentives (tax credits, grants, or loan guarantees) for companies to build production lines in the U.S. for critical quantum hardware. This includes the design and fabrication of advanced lasers, precision optics, microwave components, and quantum-grade semiconductors, as well as cryogenic electronics and ultralow-temperature refrigeration systems required for quantum labs. Capabilities like high-precision metrology (chip characterization) and advanced 3D packaging for quantum devices should also be developed domestically. Some of these areas overlap with semiconductor and photonics industries—where recent government efforts were aimed at boosting U.S. manufacturing— but specialized focus on quantum needs is essential. By onshoring production of these components, the U.S. will mitigate risks of foreign supply cut-offs and foster a local ecosystem of quantum suppliers and startups.  In tandem, federal R&D programs can partner with U.S. manufacturers to improve yields and performance in quantum-specific production, driving the costs down over time.

    By implementing these measures, the U.S. can build a resilient quantum supply chain that supports our nation’s long-term leadership. A combination of strategic planning, direct investment, public-private partnerships, and incentives will reduce dependence on foreign suppliers and ensure that our scientists and quantum innovators have access to the tools and components they need to succeed.

    Conclusion

    In closing, the government plays a critical role in coordinating our quantum ecosystem, funding the base of scientific discoveries and talent that the industry relies on, and being the first customer for next generation computers.

    Quantum technology promises to redefine the next era of human progress. The United States must act with urgency to ensure our continued leadership over the next hundred years.

    [1][2502.12252] Roadmap to fault tolerant quantum computation using topological qubit arrays.

    [2] Interferometric single-shot parity measurement in InAs–Al hybrid devices | Nature and Realizing Topological States on Quantum Hardware | APS Global Physics Summit.

    [3] DARPA selects two discrete utility-scale quantum computing approaches for evaluation | DARPA.

    [4] How Microsoft and Quantinuum achieved reliable quantum computing – Microsoft Azure Quantum Blog.

    [5] Microsoft and Quantinuum create 12 logical qubits and demonstrate a hybrid, end-to-end chemistry simulation – Microsoft Azure Quantum Blog.

    [6] Microsoft and Atom Computing offer a commercial quantum machine with the largest number of entangled logical qubits on record – Microsoft Azure Quantum Blog.

    [7] Investing in American leadership in quantum technology: the next frontier in innovation – Microsoft On the Issues.

    [8] National Science and Technology Council:  Subcommittee on Quantum Information Science, National Supplement to the President’s FY 2025 Budget.

    [9] Hodan Omaar and Martin Makaryan, “How Innovative is China,” Information Technology & Innovation Foundation, September 2024.

    [10] Id.

    [11] McKinsey & Company, “Quantum Technology Monitor,” April 2023.

    [12] National Science Board, “The State of U.S. Science and Engineering 2024,” March 2024.

    [13] Id.

    [14] Id.

    [15] Id.

    [16] Id.

    Tags: quantum, Senate Testimony, Technology

    MIL OSI Economics

  • MIL-OSI Canada: Quadrupling youth beds with CASA Mental Health

    Alberta’s government continues to build the Alberta Recovery Model, a continuum of mental health and addiction care that includes prevention, intervention, treatment and recovery. With record-high investment, the model is supporting Albertans of all ages, ensuring children and youth get the mental health care they need to live healthy, fulfilling lives.

    Alberta’s government has an established partnership with CASA Mental Health, the province’s second-largest provider of community-based youth mental health services. The organization focuses on youth who are experiencing mental health challenges that are complex but do not require treatment in an acute care setting or psychiatric hospital.  

    To continue this partnership, Budget 2025 provides $47 million in capital grants to CASA Mental Health to build live-in and day program youth facilities in three new locations: Medicine Hat, Fort McMurray and Calgary. This is part of a capital commitment of $75 million over three years (2023-26), which will also support the relocation of the existing CASA House from Sherwood Park to Edmonton. This capital grant funding will quadruple the number of CASA House beds in Alberta to about 80. Once fully operational, CASA House facilities will treat more than 300 young Albertans every year.  

    “Investing in youth mental health sets young people up for brighter futures and helps strengthen families and communities across Alberta. The new CASA Houses and our strong partnership with CASA Mental Health will provide the care they need, closer to home.”

    Premier Danielle Smith, MLA for Brooks-Medicine Hat

    “Through the Alberta Recovery Model, we are continuing to invest in the infrastructure, programs and services that will give Albertans access to the supports they need to live meaningful, fulfilling lives. Our partnership with CASA Mental Health is increasing access to services and bringing supports closer to home.”

    Dan Williams, Minister of Mental Health and Addiction

    CASA House facilities will provide treatment for youth aged 12-18 who are experiencing complex mental health challenges with both live-in and day programming. This programming supports youth with the development of skills to build stronger relationships, manage conflict, solve problems, maintain positive health and wellness, and transition to a community school setting. Alberta’s government ensures no family needs to pay for these services by fully funding their operation.

    “CASA Mental Health is expanding to provide services to children and youth, and hope to the families supporting them, by bridging the gap between home and hospital. We’re pleased to partner with the Alberta government to bring timely mental health care to more children and youth throughout the province.”

    Bonnie Blakley, chief executive officer, CASA Mental Health

    “We felt welcomed. We were treated with respect. We loved that there was a program for our child and for us. We learned a lot for the first time since our struggles, we felt like we were not alone and that there is hope. We are so thankful for the amazing staff who made our child’s journey easier.”

    Parent of CASA House patient

    CASA Mental Health is in the final stages of securing land for the Fort McMurray CASA House, with that location and the Calgary CASA House expected to open in 2027.

    Targeted completion of the Medicine Hat and Edmonton CASA House facilities is 2029. The existing CASA House in Sherwood Park will continue operating until the new location opens. As a non-profit charity, CASA Mental Health will engage with the community and embark on a fundraising campaign to supplement government’s capital funding commitment. 

    “CASA House will have a profound impact on the Fort McMurray region. This facility will help children receive quality mental health care close to home. This is another example of Alberta’s government investing in local infrastructure to support families in northern Alberta.”

    Brian Jean, MLA for Fort McMurray-Lac La Biche

    “As an advocate of mental health care, I’m grateful for this new investment for children and youth facing complex mental health challenges. Too often, parents are left questioning how they can get their children the help they need. This new facility will be an important addition to our community.”

    Tany Yao, MLA for Fort McMurray-Wood Buffalo

    “Since being elected two years ago, I have worked with community organizations and service providers to connect with each other and make a mental health and addiction system that works for Medicine Hat. A new CASA House in the city will fill a gap I often hear about, which is the need for more access to mental health services tailored specifically to youth.”

    Justin Wright, MLA for Cypress-Medicine Hat

    Treatment includes individual, group and family therapy, social and life skills training and on-site schooling. Family and caregivers play a vital role in recovery and are actively engaged throughout the treatment process. This includes participation in bi-weekly parent and multi-family group therapy sessions, education and support opportunities and involvement in personalized care and discharge planning.

    Youth who stay at a CASA House receive proactive discharge planning, including eight to 12 weeks of follow-up support. The transition team works with families to develop a coordinated plan that may include referrals to community services, school supports and primary care providers.

    Alberta’s government is making record investments in mental health services to support Albertans of all ages in their pursuit of wellness and recovery. This includes investing in digital supports like 211 Alberta and Kids Help Phone, supporting school-based initiatives, increasing access to eating disorder treatment for young Albertans and investing in affordable virtual and in-person counselling.

    Quick facts

    • May 7 is National Child and Youth Mental Health Day.
    • CASA House patients consistently see improvements in symptoms, including:
      • Reduction in attention-related symptoms. 
      • Reduction in substance use.
      • Reduction in emotionally related symptoms (anxiety, depression, etc.).
      • Improvement in peer relationships.
      • Improvement in school attendance and participation. 
    • In 2024-25, CASA Mental Health provided support for almost 11,000 patients and family members.
    • Albertans experiencing mental health or addiction challenges can call or text 211 Alberta for information on services and supports in their community.

    Related information

    • CASA Mental Health
    • Alberta Recovery Model

    Related news

    • New school year, new mental health classrooms (Sept. 2024)
    • Record-breaking expansion of mental health services (May 2024)
    • Building a future of mental wellness (Jan. 2024)
    • Expanding mental health treatment for youth (March 2023)

    Multimedia

    • Virtual tour – Sherwood Park CASA House

    MIL OSI Canada News