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

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

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

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

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

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

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

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

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

    Dear Mr. President,  

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

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

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

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

    Sincerely,

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Project helps to renew interest in low-demand void housing

    Source: Scotland – Highland Council

    Good progress is being made to create sustainable tenancies in Caithness by enhancing the appeal for re-letting of low-demand void council housing.

    The Council’s Void-Plus Policy involves improvements being made to voided properties to increase the appeal of these homes. There are low demand issues in Caithness so a choice-based letting scheme currently operates in the area. This means housing applicants can register an interest in a property which will then be considered by the service.

    Cllr Glynis Campbell Sinclair, Housing and Property Chair said: “Our Housing Management Team has already undertaken a host of work to progress this project so far including completing surveys, reports and engaging with sites and services.

    “The initial results do indicate that this approach is working as previously void properties have successfully received offers from housing applicants following improvement works. I am also glad to note that the feedback from tenants who are now living in these homes have expressed satisfaction with the condition of the properties.”

    The project is one of many included within the Council’s five-year Delivery Plan which is committed to securing social and economic transformation in the Highlands.

    4 Feb 2025

    MIL OSI United Kingdom –

  • MIL-OSI New Zealand: Health – ProCare Foundation announces recipients of more than $200,000 of funding

    Source: ProCare Foundation

    Six Auckland organisations tackling health inequity and poverty have received a major boost, with the ProCare Charitable Foundation announcing $210,000 in grants to support initiatives that promote community health and wellbeing.


    This year’s recipients are:

    1. Auckland Women’s Centre Inc
    2. BabyStart Charitable Trust
    3. Dance & Arts Therapy NZ
    4. Garden to Table Trust
    5. Orange Sky NZ Ltd
    6. Warriors Community Foundation.

     

    ProCare Foundation Chair, Peter Didsbury, says: “Every dollar granted reflects our commitment to addressing health inequities and empowering organisations working on the frontlines of our communities. This funding is an investment in healthier futures for all Aucklanders.”

    “It’s inspiring to see the creativity and dedication these organisations bring to tackling some of our toughest social and health challenges. Their mahi aligns perfectly with the Foundation’s mission – to support the health and well-being of disadvantaged communities by delivering health-related activities that improve a community’s wellbeing, or reduce health inequalities and alleviate poverty and deprivation in the Auckland region,” concludes Didsbury.

    The Foundation was established by the shareholders of ProCare Health Limited in 2013 with Trustee and Administration services being provided by Public Trust.

    Glenys Talivai, CEO of Public Trust, says: “Empowering local organisations with targeted funding creates ripple effects and positive outcomes for the larger community. Our work with the ProCare Charitable Foundation is a powerful way to uplift organisations that provide care and protection for society’s most vulnerable. We are proud to be the trustee and manage the granting programme and congratulate the six organisations receiving funding.”

    Since the establishment of the ProCare Charitable Foundation, it has granted more than $2 million in funding to increase community health and wellbeing in the Greater Auckland Region.

    Recipients of the ProCare Charitable Foundation funding, as selected at the end of 2024 are:

    Organisation: Auckland Women’s Centre Inc

    Project: Supporting no/low-cost counselling: supervision, triage, referrals, and client-counsellor matching.

    The centre facilitates empowerment and wellbeing for all women in Tāmaki Makaurau via education, counselling, brief crisis support, peer support, advice and referral, community kōrero, advocacy, and safe space. In 2025, they will offer five student counsellors, up from 3.5 in 2024 and two in 2023. Their counsellors are of different ethnicities, ages and interests who meet the needs of diverse women.

    Organisation: BabyStart Charitable Trust

    Project: Supporting infant and maternal care packages for Auckland families.

    BabyStart’s purpose is to alleviate poverty, encourage positive parenting and safe sleep practices, and encourage engagement with maternal health services through the provision of high-quality infant care packages. This funding will go towards baby boxes with baby clothing and care items for high needs whānau based on need and availability.

    Organisation: Dance & Arts Therapy NZ

    Project: Dance movement and arts therapy for 80+ vulnerable children

    Their mission is to provide unwavering support to the mental health and disability sectors through dance movement and arts therapy. They serve individuals of all backgrounds, including those with disabilities, mental health challenges, low-income children and survivors of abuse. The funding will cover facilitation, materials, coordination, venue hire, and administration, delivering 108 sessions for at-risk children and 128 sessions for children with disabilities.

    Organisation: Garden to Table Trust

    Project: Supporting salary for programme coordinators – Auckland.

    The Garden to Table programme is currently running in 85 schools and ECEs in Greater Auckland (excluding South Auckland). The programme is typically run as a regular session in school where tamariki learn the skills they need to grow fresh produce, harvest it, prepare and cook it. Children do everything for themselves and are encouraged to take their learning home to share with family and whānau.

    Organisation: Orange Sky NZ Ltd

    Project: Laundry & shower service for those experiencing homelessness and hardship.

    In Auckland, they operate two vans, an internal laundry at HomeGround (Auckland City Mission), and a pod in South Auckland. Through these services, they aim to raise dignity and mana for individuals experiencing homelessness and hardship, supporting their health and wellbeing. By offering clean clothes and access to showers, they foster a sense of self-worth and community connection, addressing both immediate needs and the long-term goal of improving lives in the wider Auckland region.

    Organisation: Warriors Community Foundation

    Project: Supporting health-focused programmes promoting physical, mental well-being, and inclusivity.

    The Tupu Maia programme is dedicated to promoting the health and wellbeing of intermediate-aged girls by advancing education on physical and mental wellness. The programme focuses on building confidence, self-esteem, and physical activity through structured lessons on nutrition, hydration, sleep, and mental resilience. By fostering a supportive environment, Tupu Maia encourages participants to develop lifelong habits that improve both their physical and mental health.

     About the ProCare Foundation

    The ProCare Foundation was established by the shareholders of ProCare who gifted more than 90% of their shares to the Foundation in 2013. The purpose of the Foundation is to help promote the health and wellbeing of disadvantaged communities, deliver health-related activities that improve a community’s wellbeing, or reduce health inequalities and alleviate poverty and deprivation in the Auckland region. For more information about the Foundation and previous grant recipients, click here or visit www.procare.co.nz  

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Palestine Forum of New Zealand Condemns Trump’s Remarks and Calls for Immediate Action to Protect Palestinian Rights

    Source: Palestine Forum of New Zealand

    The Palestine Forum of New Zealand strongly condemns the recent statements made by U.S. President Donald Trump regarding the forced displacement of Palestinians from Gaza. Such rhetoric is not only inflammatory but also deeply harmful, as it undermines the fundamental rights of the Palestinian people and perpetuates a cycle of violence and injustice.

    The Palestine Forum of New Zealand firmly believes that the Palestinian people have the right to live in dignity, safety, and peace within their homeland. Forced displacement is a violation of international law and human rights principles, and it must be unequivocally rejected by the global community. The suggestion that Palestinians have “no alternative” but to leave Gaza is both false and dangerous, as it ignores the root causes of the ongoing crisis and the need for a just and lasting resolution.

    The Palestine Forum of New Zealand stands in solidarity with the Palestinian people and reaffirms its commitment to justice, equity, and the protection of human rights. We urge the international community to take immediate and meaningful action to prevent further suffering and to work toward a future where all people can live in peace and dignity.

    Maher Nazzal
    Palestine Forum of New Zealand

    MIL OSI New Zealand News –

  • MIL-OSI Security: Two Individuals Charged With Running a Fencing Operation for South American Theft Groups in Manhattan’s Diamond District

    Source: Office of United States Attorneys

    Defendants Allegedly Received Luxury Items Linked to Burglaries Across Multiple States

    Earlier today, at the federal court in Brooklyn, an indictment was unsealed charging Dimitriy Nezhinskiy and Juan Villar with conspiracy to receive stolen property related to their purchasing of stolen goods that traveled across state lines. The defendants were arrested today, Nezhinskiy in New Jersey and Villar in Manhattan. They will be arraigned tomorrow before United States Magistrate Judge Lara K. Eshkenazi.

    John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jessica S. Tisch, Commissioner, New York City Police Department (NYPD) and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) announced the charges.

    “As alleged, the defendants created an illicit market and fueled demand for burglaries by South American Theft Groups and other crews around the country by purchasing stolen watches, jewelry and other luxury items, and then re-selling them in their New York City store,” stated United States Attorney Durham.  “My Office will continue to pursue organized groups who engage, enable, or encourage the pillaging of residential homes and businesses that has a corrosive effect on the sense of security in our communities.”

    “For almost five years, Dimitriy Nezhinskiy and Juan Villar allegedly served as unlawful brokers to perpetuate the sale of stolen luxury items by purchasing them from burglary crews. The defendants’ alleged actions incentivized highly organized South American Theft Groups to continue their meticulous looting scheme against a myriad of affluent residences and businesses across the country. With our law enforcement partners, the FBI will continue to dismantle any criminal activity curated to capitalize on victims’ losses and establish an economic demand for ill-obtained merchandise within our city,” stated FBI Assistant Director in Charge Dennehy.

    “We will not tolerate crime of any kind in New York, whether it be street crime, retail theft, or these organized operations that target residential homes to steal and resell luxury goods,” said NYPD Commissioner Tisch.  “Today’s indictment is the result of our strong work with our law enforcement partners and our commitment to cracking down on these crime rings that threaten our communities.”

    “We want to thank our partners in federal law enforcement for this collaborative effort to bring this criminal to justice,” stated NCPD Commissioner Ryder. “The men and women of the Nassau County Police Department, particularly the dedicated Detectives of the Major Case Squad, work tirelessly to investigate crimes and arrest those who prey upon our citizens.”

    As alleged in the indictment, between approximately 2020 and 2025, the defendants conspired with each another and others to receive and purchase stolen property, including jewelry, watches, handbags and assorted luxury items that had been stolen outside of the state of New York and transported into New York.  As detailed in court filings, Nezhinskiy and Villar regularly served as “fences” for burglary crews based out of South America who traveled around the United States committing burglaries, typically targeting wealthier neighborhoods or jewelry vendors, and stealing luxury accessories. Nezhinskiy and Villar’s operation provided an essential market for the stolen goods, perpetuating the dangerous criminal activities of the burglary and theft crews composed largely of foreign nationals.

    For example, evidence links Nezhinskiy and Villar to thefts around the country, including crimes committed by Bryan Leandro Herrera Maldonado, a prolific burglar who committed at least 16 residential burglaries across the United States between 2019 and 2020.  Additionally, phone records and video surveillance links Nezhinskiy to at least two members of a four-man burglary crew believed to be involved in the December 9, 2024 burglary of a high-profile athlete in Ohio, and showed Nezhinskiy in contact with that crew less than one week before the burglary in Ohio.

    In addition, between October 2022 and January 2024, an undercover detective conducted seven controlled sales of purported stolen property, including high-end handbags and luxury accessories, to Nezhinskiy or Villar, or both, at their business location in Manhattan’s Diamond District.  During these controlled sales, the undercover detective provided the defendants with items that the undercover told the defendants had been stolen, and received cash in exchange for the stolen goods.

    Today, law enforcement executed a search warrant at the location on 47th Street in Manhattan where Nezhinskiy and Villar operate a pawn shop and seized large quantities of suspected stolen property, including dozens of high-end watches and jewelry. Law enforcement also recovered large quantities of cash and marijuana.  Simultaneously, law enforcement executed a search warrant at storage units belonging to Nezhinskiy in New Jersey where an additional cache of suspected stolen property was found.  From inside Nezhinskiy’s storage units, law enforcement recovered large quantities of luxury goods and clothing, including high-end handbags, wine, sports memorabilia, jewelry, artwork and power tools consistent with those commonly used in burglaries and opening safes.

    The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.  If convicted of receipt of stolen goods, the defendants face up to 10 years in prison.

    The government’s case is being handled by the Criminal Section of the Office’s Long Island Division and the Office’s General Crimes Section.  Assistant United States  Attorneys Michael R. Maffei, Katherine P. Onyshko and Sean M. Sherman are in charge of the prosecution.

    The Defendants:

    DIMITRIY NEZHINSKIY
    Age:  43
    North Bergen, New Jersey

    JUAN VILLAR
    Age:  48
    Queens, New York

    E.D.N.Y. Docket No. 25-CR-40 (WFK)

    MIL Security OSI –

  • MIL-OSI Security: Two Individuals Indicted on Federal Child Pornography Charges

    Source: Office of United States Attorneys

    COUNCIL BLUFFS, Iowa – A federal grand jury in Council Bluffs returned a two-count indictment on January 29, 2025 charging two individuals with offenses related to distribution and receipt of child pornography.

    The following individuals are charged in the Indictment:

    • Jason J. Traina, 52, Rockland County, New York is charged with distribution of child pornography. On January 31, 2025, Traina made his initial appearance in the Southern District of New York. The government argued Traina should remain detained pending trial. The United States Magistrate Judge released Traina on conditions of home detention and location monitoring.
    • Carrie Marie Campbell, 40, of Council Bluffs, is charged with receipt of child pornography. On February 3, 2025, Campbell made her initial appearance in the Southern District of Iowa. Campbell was temporarily ordered detained until a detention hearing.

    Traina and Campbell each face a mandatory minimum sentence of five years in prison and a maximum sentence of twenty years in prison.

    United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation and the Council Bluffs Police Department are investigating this case, with assistance from the Rockland County District Attorney’s Office, FBI Safe Streets NY, and the Stony Point Police Department.

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

    MIL Security OSI –

  • MIL-OSI Europe: Answer to a written question – High cost of living in the outermost regions – E-002822/2024(ASW)

    Source: European Parliament

    The Commission is aware of the high costs of living in the outermost regions. A 2024 independent study on living conditions[1] puts the spotlight on substantial challenges in access to housing (as well as energy and water) in these regions.

    In line with the 2022 strategy for the outermost regions[2], and highlighted in its 2024 implementation report[3], the Commission supports these regions through policies and funds that seek to improve living conditions and alleviate poverty. For example, the cohesion policy funds support these regions with nearly EUR 10 billion between 2021 and 2027.

    Cohesion policy funds play a vital role in supporting access to affordable and adequate housing, as well as for access to basic services and infrastructure. In addition, the Recovery and Resilience Facility finances energy renovation of housing, to help reduce the energy bills of the most vulnerable households and increase their comfort. For instance, France’s recovery and resilience plan funds a programme for energy renovation of social housing, and initiatives to improve energy efficiency in private housing, including in its outermost regions.

    The ‘Programme of Options Specific to Remoteness and Insularity’ (POSEI) contributes to food autonomy, accessibility, and economic diversification in these regions with over EUR 4.5 billion. The European agricultural fund for rural development further supports their agri-food sector and rural development with over EUR 1 billion.

    Finally, the first-ever Commissioner for housing will deliver a European Affordable Housing Plan to address structural drivers and unlock public and private investment for affordable and sustainable housing. The Commission is establishing a Task Force on Housing to this end.

    • [1] Study on living conditions and access to selected basic needs in the EU outermost regions, (ECORYS — February 2024): https://ec.europa.eu/regional_policy/information-sources/publications/studies/2024/study-on-living-conditions-and-access-to-selected-basic-needs-in-the-eu-outermost-regions_en
    • [2] COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Putting people first, securing sustainable and inclusive growth, unlocking the potential of the EU’s outermost regions (COM/2022/198 final): https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52022DC0198
    • [3] Report on the implementation of the communication: Putting people first, securing sustainable and inclusive growth, unlocking the potential of the EU’s outermost regions: https://ec.europa.eu/regional_policy/information-sources/publications/reports/2024/report-on-the-implementation-of-the-communication-putting-people-first-securing-sustainable-and-inclusive-growth-unlocking-the-potential-of-the-eu-s-outermost-regions_en
    Last updated: 4 February 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Regulation (EU) 2024/573 on fluorinated greenhouse gases – E-002924/2024(ASW)

    Source: European Parliament

    Regulation (EU) 2024/573[1] on fluorinated greenhouse gases (F-gases) includes prohibitions on placing on the market certain F-gas equipment, which are expected to be feasible from the date they apply, provide legal certainty to manufacturers and promote innovation. The latter is clearly evidenced by many new models of heat pumps for private residences that avoid the use of F-gases and are being shown at major trade fairs, e.g. Chillventa[2]. New production capacities have been created to produce such equipment.

    Conversely, there is no indication that the new F-gas Regulation, which only entered into force in March 2024, has adversely affected the uptake of heat pumps. Rather, a slowing growth of heat pump sales observed in some Member States is attributed by the European Heat Pump Association (EHPA) in its latest report[3] to changes or lack/removal of national support schemes, energy prices favouring gas and fossil fuels and other issues affecting end-users (high interest rates, renovation rate slow-down, inflation).

    The Commission intends to carry out a review of the F-gas Regulation by 2030 as provided for in the regulation.

    • [1] https://eur-lex.europa.eu/eli/reg/2024/00573/oj
    • [2] https://www.chillventa.de/en
    • [3] EHPA (2024). European Heat Pump Market and Statistics Report 2024.
    Last updated: 4 February 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Recent developments regarding methane emissions possibly not complying with EU-New Zealand free trade agreement – E-002719/2024(ASW)

    Source: European Parliament

    The Free Trade Agreement (FTA) between the European Union and New Zealand establishes the structures and procedures to analyse, discuss and address any matters which arise in relation to the FTA, including issues related to the Paris Agreement[1] on climate change.

    The Commission services are in contact with their New Zealand counterparts to prepare the first meetings of the committees established under the FTA, which are foreseen to take place in the first half of 2025. In these bilateral exchanges, various matters of interest and concern are being anticipated and discussed, including with regard to greenhouse gases such as methane.

    Independently from the FTA, the Commission is engaged with New Zealand in high level dialogues on climate change to intensify bilateral and multilateral climate cooperation, including on methane emissions. The first such dialogue took place in 2023, while the second one is expected to be held this year .

    If a potential matter of concern with regard to the commitments agreed in an FTA is identified, the Commission can formally engage with New Zealand with an aim to resolve the issue. In particular, the matter can be followed-up in the relevant committee of the FTA. If no solution were to be found with respect to a potential breach, the FTA foresees the possibility to resort to dispute settlement proceedings.

    The Paris Agreement is an essential element of the FTA and the Commission is committed to ensuring that its objective and purpose is respected, including in our relations with our closest partners.

    • [1] Key aspects of the Paris Agreement: https://unfccc.int/most-requested/key-aspects-of-the-paris-agreement
    Last updated: 4 February 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Answer to a written question – Several Swedish municipalities and regions are missing out on millions of kronor in electricity subsidies because they are being classified as farms – E-003014/2024(ASW)

    Source: European Parliament

    Concerning the first and second questions, the Commission cannot take position without further details. Both questions seem largely related to the interpretation of the national law, which the Commission cannot comment on.

    Nevertheless, Article 345 of the Treaty on the Functioning of the European Union expresses the principle of neutrality in relation to the rules in Member States governing the system of property ownership.

    This implies that public bodies, such as municipalities or regions, may also carry out economic activities and then constitute undertakings, as defined in the jurisprudence of the EU Courts.

    However, the classification of such an entity as an undertaking is always relative to a specific activity. An entity that carries out both economic and non-economic activities is to be regarded as an undertaking only with regard to the former.

    It follows that EU competition law, including EU State aid law, does not require to qualify a municipality or region that carries out different activities, some of them economic and some non-economic, as an undertaking with regard to all its activities, but only with regard to those that are economic in nature.

    As such, these rules do not require to qualify the entirety of a municipality or region that, amongst many activities, also carries out the economic activity of primary agricultural production as a farmer, but rather only those activities that constitute such primary agricultural production.

    Moreover, the Commission is committed to bring down electricity prices for households and businesses to support the energy transition and the Union’s competitiveness.

    Therefore, the Commission is working on the Clean Industrial Deal and an Action Plan for Affordable Energy to be published in the first hundred days of this Commission, in line with the mission letters by the President of the Commission to the Executive Vice-President for a Clean, Just and Competitive Transition[1] and to the Commissioner for Energy and Housing[2].

    • [1] https://commission.europa.eu/document/download/33d74e86-3a17-472c-ba93-59d1606bbc20_en?filename=mission-letter-ribera_0.pdf
    • [2] https://commission.europa.eu/document/download/35154547-48c1-4671-8d34-13e098859a57_en?filename=mission-letter-jorgensen.pdf

    MIL OSI Europe News –

  • MIL-OSI: Enact Reports Fourth Quarter and Full Year 2024 Results and Announces Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    GAAP Net Income of $163 million, or $1.05 per diluted share
    Adjusted Operating Income of $169 million, or $1.09 per diluted share
    Return on Equity of 13.0% and Adjusted Operating Return on Equity of 13.5%
    Record Primary insurance in-force of $269 billion, a 2% increase from fourth quarter 2023
    PMIERs Sufficiency of 167% or $2,052 million
    Book Value Per Share of $32.80 and Book Value Per Share excluding AOCI of $34.16
    Returned over $350 million of capital to shareholders in 2024
    Announces quarterly cash dividend of $0.185 per common share

    RALEIGH, N.C., Feb. 04, 2025 (GLOBE NEWSWIRE) — Enact Holdings, Inc. (Nasdaq: ACT) today announced its fourth quarter and full-year 2024 results.

    “Our very strong performance in 2024 underscores the effectiveness of our strategy and the continued successful execution of our priorities,” stated Rohit Gupta, President and CEO of Enact. “In a complex economic environment, we responsibly grew our portfolio, drove operational efficiencies, maintained a strong balance sheet and generated meaningful capital returns to our shareholders. As we look to the future, our proven strategy and disciplined execution position us well to realize the opportunities ahead and to create long-term value for our stakeholders.”

    Key Financial Highlights

    (In millions, except per share data or otherwise noted) 4Q24 3Q24 4Q23 2024 2023
    Net Income (loss) $163 $181 $157 $688 $666
    Diluted Net Income (loss) per share $1.05 $1.15 $0.98 $4.37 $4.11
    Adjusted Operating Income (loss) $169 $182 $158 $718 $676
    Adj. Diluted Operating Income (loss) per share $1.09 $1.16 $0.98 $4.56 $4.18
    NIW ($B) $13 $14 $10 $51 $53
    Primary IIF ($B) $269 $268 $263    
    Primary Persistency Rate 82% 83% 86% 83% 85%
    Net Premiums Earned $246 $249 $240 $980 $957
    Losses Incurred $24 $12 $24 $39 $27
    Loss Ratio 10% 5% 10% 4% 3%
    Operating Expenses $58 $56 $59 $223 $223
    Expense Ratio 24% 22% 25% 23% 23%
    Net Investment Income $63 $61 $56 $241 $207
    Net Investment gains (losses) $(7) $(1) $(1) $(23) $(14)
    Return on Equity 13.0% 14.7% 13.8% 14.3% 15.2%
    Adjusted Operating Return on Equity 13.5% 14.8% 13.9% 14.9% 15.5%
    PMIERs Sufficiency ($) $2,052 $2,190 $1,887    
    PMIERs Sufficiency (%) 167% 173% 161%    
               

    Fourth Quarter 2024 Financial and Operating Highlights

    • Net income was $163 million, or $1.05 per diluted share, compared with $181 million, or $1.15 per diluted share, for the third quarter of 2024 and $157 million, or $0.98 per diluted share, for the fourth quarter of 2023. Adjusted operating income was $169 million, or $1.09 per diluted share, compared with $182 million, or $1.16 per diluted share, for the third quarter of 2024 and $158 million, or $0.98 per diluted share, for the fourth quarter of 2023.
    • New insurance written (NIW) was approximately $13 billion, down 2% from the third quarter of 2024 primarily from seasonality partially offset by an estimated increase in refinance originations and up 27% from the fourth quarter of 2023 primarily driven by estimated higher originations. NIW for the current quarter was comprised of 96% monthly premium policies and 86% purchase originations.
    • Primary insurance in-force (IIF) was a record $269 billion, up from $268 billion in the third quarter of 2024 and up 2% from $263 billion in the fourth quarter of 2023.
    • Persistency remained elevated at 82%, down slightly from 83% in the third quarter of 2024 and down from 86% in the fourth quarter of 2023. The decrease year-over-year was primarily driven by a decline in mortgage rates in September 2024. Approximately 70% of our IIF had mortgage rates below 6%.
    • Net premiums earned were $246 million, down 1% from $249 million in the third quarter of 2024 and up 2% from $240 million in the fourth quarter of 2023. Net premiums decreased sequentially, primarily driven by higher ceded premiums and increased year over year driven by premium growth from attractive adjacencies and growth in primary insurance in-force, partially offset by higher ceded premiums.
    • Losses incurred for the fourth quarter of 2024 were $24 million and the loss ratio was 10%, compared to $12 million and 5%, respectively, in the third quarter of 2024 and $24 million and 10%, respectively, in the fourth quarter of 2023. The current quarter reserve release of $56 million from favorable cure performance and loss mitigation activities compares to a reserve release of $65 million and $53 million in the third quarter of 2024 and fourth quarter of 2023, respectively. The sequential increase in losses and the loss ratio were primarily driven by a lower reserve release and new delinquencies are up 1% excluding hurricane-related delinquencies.
    • Operating expenses in the current quarter were $58 million and the expense ratio was 24%. This compared to $56 million and 22%, respectively, in the third quarter of 2024 and $59 million and 25%, respectively in the fourth quarter of 2023. The sequential increase was driven by incentive-based compensation while the year-over-year decrease was driven in part by the impact of our cost reduction initiatives.
    • Net investment income was $63 million, up from $61 million in the third quarter of 2024 and $56 million in the fourth quarter of 2023, driven by the continuation of elevated interest rates and higher average invested assets.
    • Net investment loss in the quarter was $(7) million, as compared to $(1) million sequentially and $(1) million in the same period last year. The current period was primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income.
    • Annualized return on equity for the fourth quarter of 2024 was 13.0% and annualized adjusted operating return on equity was 13.5%. This compares to third quarter 2024 results of 14.7% and 14.8%, respectively, and to fourth quarter 2023 results of 13.8% and 13.9%, respectively.

    Capital and Liquidity

    • We returned $354 million to shareholders in 2024 inclusive of quarterly dividends and share repurchases.
    • During the quarter, we announced two quota share reinsurance agreements with a panel of highly-rated reinsurers that will cede approximately 27% of a portion of expected new insurance written for the 2025 and 2026 book years.
    • As previously announced, we paid approximately $28 million, or $0.185 per share, dividend in the fourth quarter.
    • For the full year 2024, we repurchased 7.6 million shares at a weighted average share price of $31.95 for a total of $243 million.
    • EMICO completed a distribution of approximately $230 million in the fourth quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility.
    • Enact Holdings, Inc. held $243 million of cash and cash equivalents plus $298 million of invested assets as of December 31, 2024. Combined cash and invested assets increased $98 million from the prior quarter, primarily due to a contribution from EMICO, partially offset by share buybacks and our quarterly dividend.
    • PMIERs sufficiency was 167% and $2.1 billion above the PMIERs requirements, compared to 173% and $2.2 billion above the PMIERs requirements in the third quarter of 2024.

    Recent Events

    • In January 2025, Fitch Ratings (“Fitch”) upgraded the Insurer Financial Strength rating for EMICO to A from A- and also upgraded Enact’s senior debt rating to BBB. The outlook for both ratings is stable.
    • Subsequent to quarter end, we announced two excess of loss reinsurance agreements with a panel of highly rated reinsurers that will provide ~$225M and ~$260M of coverage on a portion of expected new insurance written for the 2025 and 2026 book years, respectively.
    • We repurchased approximately 2.1 million shares at an average price of $34.75 for a total of approximately $74 million in the quarter. Additionally, through January 31, 2024, we repurchased 0.6 million shares at an average price of $32.60 for a total of $19 million. There remains approximately $74 million of our $250 million repurchase authorization.
    • We announced today that the Board of Directors declared a quarterly dividend of $0.185 per common share, payable on March 14, 2025, to shareholders of record on February 21, 2025.

    Conference Call and Financial Supplement Information
    This press release, the fourth quarter 2024 financial supplement and earnings presentation are now posted on the Company’s website, https://ir.enactmi.com. Investors are encouraged to review these materials.

    Enact will discuss third quarter financial results in a conference call tomorrow, Wednesday, February 5, 2025, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN. It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call. If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events.

    The webcast will also be archived on the Company’s website for one year.

    About Enact
    Enact (Nasdaq: ACT), operating principally through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders’ businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.

    Safe Harbor Statement
    This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

    GAAP/Non-GAAP Disclosure Discussion
    This communication includes the non-GAAP financial measures entitled “adjusted operating income (loss)”, “adjusted operating income (loss) per share,” and “adjusted operating return on equity.” Adjusted operating income (loss) per share is derived from adjusted operating income (loss). The chief operating decision maker evaluates performance and allocates resources on the basis of adjusted operating income (loss). Enact Holdings, Inc. (the “Company”) defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the Company does not consider them to be related to the operating performance of the Company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity.

    While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the Company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the Company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

    Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate.

    The tables at the end of this press release provide a reconciliation of net income (loss) to adjusted operating income (loss) and U.S. GAAP return on equity to adjusted operating return on equity for the three months and twelve months ending December 31, 2024 and 2023, as well as for the three months ended September 30, 2024

    Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts)

      4Q24 3Q24 4Q23   2024     2023  
    REVENUES:          
    Premiums $245,735   $249,055   $240,101   $980,104   $957,075  
    Net investment income   62,624     61,056     56,161     240,564     207,369  
    Net investment gains (losses)   (7,167)     (1,243)     (876)     (22,807)     (14,022)  
    Other income   584     720     804     3,913     3,264  
    Total revenues   301,776     309,588     296,190     1,201,774     1,153,686  
               
    LOSSES AND EXPENSES:          
    Losses incurred   23,813     12,164     24,372     38,657     27,165  
    Acquisition and operating expenses, net of deferrals   55,325     53,091     56,560     213,310     212,491  
    Amortization of deferred acquisition costs and intangibles   2,522     2,586     2,566     9,659     10,654  
    Interest expense   12,262     12,290     12,948     51,157     51,867  
    Loss on debt extinguishment   0     0     0     10,930     0  
    Total losses and expenses   93,922     80,131     96,446     323,713     302,177  
               
    INCOME BEFORE INCOME TAXES   207,854     229,457     199,744     878,061     851,509  
    Provision for income taxes   45,116     48,788     42,436     189,993     185,998  
    NET INCOME $162,738   $180,669   $157,308   $688,068   $665,511  
               
    Net investment (gains) losses   7,167     1,243     876     22,807     14,022  
    Costs associated with reorganization   411     848     408     4,652     (131)  
    Loss on debt extinguishment   0     0     0     10,930     0  
    Taxes on adjustments   (1,591)     (439)     (270)     (8,061)     (2,917)  
    Adjusted Operating Income $168,725   $182,321   $158,322   $718,396   $676,485  
               
    Loss ratio (1)   10%     5%     10%     4%     3%  
    Expense ratio (2)   24%     22%     25%     23%     23%  
    Earnings Per Share Data:          
    Net Income per share          
    Basic $1.06   $1.16   $0.99   $4.40   $4.14  
    Diluted $1.05   $1.15   $0.98   $4.37   $4.11  
    Adj operating income per share          
    Basic $1.10   $1.17   $0.99   $4.60   $4.21  
    Diluted $1.09   $1.16   $0.98   $4.56   $4.18  
    Weighted-average common shares outstanding          
    Basic   153,537     155,561     159,655     156,277     160,870  
    Diluted   154,542     157,016     160,895     157,554     161,847  
               
    (1) The ratio of losses incurred to net earned premiums.      
    (2) The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by one percentage point for the three-month period ended December 31, 2024, and zero percentage points for the three-month periods ended September 30, 2024, and December 31, 2023. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by one percentage point for the year ended December 31, 2024 and zero percentage points for the year ended December 31, 2023.
     

    Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts)

    Assets 4Q24 3Q24 4Q23
    Investments:      
    Fixed maturity securities available-for-sale, at fair value $5,624,773   $5,652,399   $5,266,141  
    Short term investments   3,367     1,550     20,219  
    Total investments   5,628,140     5,653,949     5,286,360  
    Cash and cash equivalents   599,432     673,363     615,683  
    Accrued investment income   49,595     45,954     41,559  
    Deferred acquisition costs   23,771     24,160     25,006  
    Premiums receivable   53,031     48,834     45,070  
    Other assets   102,549     100,723     88,306  
    Deferred tax asset   65,013     50,063     88,489  
    Total assets $6,521,531   $6,597,046   $6,190,473  
           
    Liabilities and Shareholders’ Equity      
    Liabilities:      
    Loss reserves $524,715   $510,401   $518,191  
    Unearned premiums   114,680     121,382     149,330  
    Other liabilities   142,990     186,312     145,189  
    Long-term borrowings   743,050     742,706     745,416  
    Total liabilities   1,525,435     1,560,801     1,558,126  
    Equity:      
    Common stock   1,523     1,544     1,593  
    Additional paid-in capital   2,076,788     2,145,518     2,310,891  
    Accumulated other comprehensive income   (207,455)     (101,984)     (230,400)  
    Retained earnings   3,125,240     2,991,167     2,550,263  
    Total equity   4,996,096     5,036,245     4,632,347  
    Total liabilities and equity $6,521,531   $6,597,046   $6,190,473  
           
    Book value per share $32.80   $32.61   $29.07  
    Book value per share excluding AOCI $34.16   $33.27   $30.52  
           
    U.S. GAAP ROE (1)   13.0%     14.7%     13.8%  
    Net investment (gains) losses   0.6%     0.1%     0.1%  
    Costs associated with reorganization   0.0%     0.1%     0.0%  
    (Gains) losses on early extinguishment of debt   0.0%     0.0%     0.0%  
    Taxes on adjustments (0.1)%     0.0%     0.0%  
    Adjusted Operating ROE(2)   13.5%     14.8%     13.9%  
           
    Debt to Capital Ratio   13%     13%     14%  
           
    (1) Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
    (2) Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
     

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) today announced financial results for the fourth quarter and full year of 2024. Fourth quarter revenue was a record $7.7 billion, gross margin was 51%, operating income was $871 million, net income was $482 million and diluted earnings per share was $0.29. On a non-GAAP(*) basis, gross margin was 54%, operating income was a record $2.0 billion, net income was a record $1.8 billion and diluted earnings per share was $1.09.

    For the full year 2024, AMD reported record revenue of $25.8 billion, gross margin of 49%, operating income of $1.9 billion, net income of $1.6 billion, and diluted earnings per share of $1.00. On a non-GAAP(*) basis, gross margin was a record 53%, operating income was $6.1 billion, net income was $5.4 billion and diluted earnings per share was $3.31.

    “2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” said AMD Chair and CEO Dr. Lisa Su. “Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue. Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing.”

    “We closed 2024 with a strong fourth quarter, delivering record revenue up 24% year-over-year, and accelerated earnings expansion while investing aggressively in AI and innovation to position us for long-term growth and value creation,” said AMD EVP, CFO and Treasurer Jean Hu.

    GAAP Quarterly Financial Results

      Q4 2024 Q4 2023 Y/Y Q3 2024 Q/Q
    Revenue ($M) $7,658 $6,168 Up 24% $6,819 Up 12%
    Gross profit ($M) $3,882 $2,911 Up 33% $3,419 Up 14%
    Gross margin 51% 47% Up 4 ppts 50% Up 1%
    Operating expenses ($M) $3,022 $2,575 Up 17% $2,709 Up 12%
    Operating income ($M) $871 $342 Up 155% $724 Up 20%
    Operating margin 11% 6% Up 5 ppts 11% Flat
    Net income ($M) $482 $667 Down 28% $771 Down 37%
    Diluted earnings per share $0.29 $0.41 Down 29% $0.47 Down 38%

    Non-GAAP(*) Quarterly Financial Results

      Q4 2024 Q4 2023 Y/Y Q3 2024 Q/Q
    Revenue ($M) $7,658 $6,168 Up 24% $6,819 Up 12%
    Gross profit ($M) $4,140 $3,133 Up 32% $3,657 Up 13%
    Gross margin 54% 51% Up 3 ppts 54% Flat
    Operating expenses ($M) $2,125 $1,727 Up 23% $1,956 Up 9%
    Operating income ($M) $2,026 $1,412 Up 43% $1,715 Up 18%
    Operating margin 26% 23% Up 3 ppts 25% Up 1 ppt
    Net income ($M) $1,777 $1,249 Up 42% $1,504 Up 18%
    Diluted earnings per share $1.09 $0.77 Up 42% $0.92 Up 18%

    Annual Financial Results

      GAAP Non-GAAP(*)
       2024   2023  Y/Y  2024   2023  Y/Y
    Revenue ($M) $25,785 $22,680 Up 14% $25,785 $22,680 Up 14%
    Gross profit ($M) $12,725 $10,460 Up 22% $13,759 $11,436 Up 20%
    Gross margin % 49% 46% Up 3 ppts 53% 50% Up 3 ppts
    Operating expenses ($M) $10,873 $10,093 Up 8% $7,669 $6,616 Up 16%
    Operating income ($M) $1,900 $401 Up 374% $6,138 $4,854 Up 26%
    Operating margin % 7% 2% Up 5 ppts 24% 21% Up 3 ppts
    Net income ($M) $1,641 $854 Up 92% $5,420 $4,302 Up 26%
    Diluted earnings per share $1.00 $0.53 Up 89% $3.31 $2.65 Up 25%

    Segment Summary

    • Data Center segment revenue in the quarter was a record $3.9 billion, up 69% year-over-year primarily driven by the strong ramp of AMD Instinct™ GPU shipments and growth in AMD EPYC™ CPU sales.  
      • For 2024, Data Center segment revenue was a record $12.6 billion, an increase of 94% compared to the prior year, driven by growth in both AMD Instinct and EPYC processors.
    • Client segment revenue in the quarter was a record $2.3 billion, up 58% year-over-year primarily driven by strong demand for AMD Ryzen™ processors.
      • For 2024, Client segment revenue was a record $7.1 billion, up 52% compared to the prior year, due to strong demand for AMD Ryzen processors in desktop and mobile.
    • Gaming segment revenue in the quarter was $563 million, down 59% year-over-year, primarily due to a decrease in semi-custom revenue.
      • For 2024, Gaming segment revenue was $2.6 billion, down 58% compared to the prior year, primarily due to a decrease in semi-custom revenue.
    • Embedded segment revenue in the quarter was $923 million, down 13% year-over-year, as end market demand continues to be mixed.
      • For 2024, Embedded segment revenue was $3.6 billion, down 33% from the prior year, primarily due to customers normalizing their inventory levels.

    Recent PR Highlights

    • AMD continues expanding its partnerships to deliver highly performant AI infrastructure at scale:
      • IBM announced plans to deploy AMD Instinct MI300X accelerators to power generative AI and HPC applications on IBM Cloud.
      • Vultr and AMD announced a strategic collaboration to leverage AMD Instinct MI300X accelerators and AMD ROCm™ open software to power Vultr’s cloud infrastructure for enterprise AI development and deployment.
      • Aleph Alpha announced that it will leverage AMD Instinct MI300 Series accelerators and ROCm software to enable its tokenizer-free LLM architecture, a new approach to generative AI that aims to simplify the development of sovereign AI solutions for governments and enterprises.
      • Fujitsu and AMD announced a strategic partnership to develop more sustainable computing infrastructure to accelerate open source AI.
      • AMD expanded strategic investments to advance the AI ecosystem and solutions, including investments in LiquidAI, Vultr and Absci.
    • AMD is accelerating its AI software roadmap to deliver a robust open AI stack for the ecosystem:
      • AMD released ROCm 6.3 with numerous performance enhancements enabling faster inferencing on AMD Instinct accelerators as well as additional compiler tools and libraries.
      • AMD shared an update on its 2025 plans for the ROCm software stack to enable easier adoption of and improved out of box support for both inferencing and training applications.
    • Dell and AMD announced that AMD Ryzen AI PRO processors will power new Dell Pro notebook and desktop PCs, bringing exceptional battery life, on-device AI, Copilot+ experiences and dependable productivity to enterprise users. For the first time, Dell will offer a full portfolio of commercial PCs based on Ryzen processors, marking a significant milestone in the companies’ collaboration.
    • AMD expanded its broad consumer and commercial AI PC portfolio:
      • New AMD Ryzen AI Max and Ryzen AI Max PRO Series processors deliver workstation-level performance and next-gen AI performance for gaming, content creation and complex AI-accelerated workloads.
      • Expanded Ryzen AI 300 and Ryzen AI 300 PRO Series processors bring premium AI capabilities to mainstream and entry-level notebooks, as well as enhanced security, manageability and support for Microsoft Copilot+ experiences tailored for business users.
      • Additional Ryzen 200 and Ryzen 200 PRO Series processors offer incredible AI experiences, performance and battery life for everyday users and professionals.
      • More than 150 Ryzen AI platforms are expected to be available from leading OEMs this year.
    • AMD extended its leadership in high performance computing (HPC), enabling the most powerful and many of the most energy efficient supercomputers in the world:
      • The El Capitan supercomputer at Lawrence Livermore National Laboratory became the second AMD supercomputer to surpass the exascale barrier, placing #1 on the latest Top500 list.
      • The Hunter supercomputer at the High-Performance Computing Center of the University of Stuttgart (HLRS), powered by AMD Instinct MI300A APUs, began service, delivering HPC and AI resources for scientists, researchers, industry and the public sector.
      • AMD EPYC processors and AMD Instinct accelerators power many new supercomputing projects and AI deployments, including the Eni HPC 6 system, the University of Paderborn’s latest supercomputer and the Sigma2 AS system which is slated to be the fastest system in Norway.
    • AMD powers incredible experiences for gamers across a broad range of devices:
      • At CES 2025, AMD announced new AMD Ryzen 9000X3D, Ryzen Z2 and Ryzen 9000HX processors, extending its leadership in desktop, mobile and handheld gaming.
      • AMD shared the latest version of AMD Software: Adrenalin Edition™, 24.9.1, continuing to enhance gaming experiences with AMD Fluid Motion Frames 2 and AMD HYPR-RX.
    • AMD continues to deliver leadership compute performance and capabilities at the edge with an expanded portfolio of solutions:
      • New AMD Versal™ Gen 2 portfolio with next-generation interface and memory technologies for data-intensive applications in the data center, communications, test and measurement and aerospace and defense markets.
      • AMD Versal RF Series adaptive SoCs, combining high-resolution radio frequency data converters, dedicated DSP hard IP, AI engines and programmable logic in a single chip.
      • Vodafone and AMD announced they are collaborating on mobile base station silicon chip designs to enable higher-capacity AI and digital services.

    Current Outlook

    AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

    For the first quarter of 2025, AMD expects revenue to be approximately $7.1 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 30% and a sequential decline of approximately 7%. Non-GAAP gross margin is expected to be approximately 54%.

    AMD Teleconference
    AMD will hold a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its fourth quarter and full year 2024 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

    (in millions, except per share data) (Unaudited)

      Three Months Ended   Year Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP gross profit $ 3,882     $ 3,419     $ 2,911     $ 12,725     $ 10,460  
    GAAP gross margin   51 %     50 %     47 %     49 %     46 %
    Stock-based compensation   6       5       6       22       30  
    Amortization of acquisition-related intangibles   252       233       215       946       942  
    Acquisition-related and other costs (1)   —       —       1       1       4  
    Inventory loss at contract manufacturer (2)   —       —       —       65       —  
    Non-GAAP gross profit $ 4,140     $ 3,657     $ 3,133     $ 13,759     $ 11,436  
    Non-GAAP gross margin   54 %     54 %     51 %     53 %     50 %
                       
    GAAP operating expenses $ 3,022     $ 2,709     $ 2,575     $ 10,873     $ 10,093  
    GAAP operating expenses/revenue %   39 %     40 %     42 %     42 %     45 %
    Stock-based compensation   333       346       368       1,385       1,350  
    Amortization of acquisition-related intangibles   332       352       420       1,448       1,869  
    Acquisition-related and other costs (1)   46       55       60       185       258  
    Restructuring charges (3)   186       —       —       186       —  
    Non-GAAP operating expenses $ 2,125     $ 1,956     $ 1,727     $ 7,669     $ 6,616  
    Non-GAAP operating expenses/revenue %   28 %     29 %     28 %     30 %     29 %
                       
    GAAP operating income $ 871     $ 724     $ 342     $ 1,900     $ 401  
    GAAP operating margin   11 %     11 %     6 %     7 %     2 %
    Stock-based compensation   339       351       374       1,407       1,380  
    Amortization of acquisition-related intangibles   584       585       635       2,394       2,811  
    Acquisition-related and other costs (1)   46       55       61       186       262  
    Inventory loss at contract manufacturer (2)   —       —       —       65       —  
    Restructuring charges (3)   186       —       —       186       —  
    Non-GAAP operating income $ 2,026     $ 1,715     $ 1,412     $ 6,138     $ 4,854  
    Non-GAAP operating margin   26 %     25 %     23 %     24 %     21 %
      Three Months Ended
    		   Year Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP net income / earnings per share $ 482     $ 0.29     $ 771     $ 0.47     $ 667     $ 0.41     $ 1,641     $ 1.00     $ 854     $ 0.53  
    (Gains) losses on equity investments, net   —       —       (1 )     —       1       —       2       —       (1 )     —  
    Stock-based compensation   339       0.21       351       0.21       374       0.23       1,407       0.86       1,380       0.85  
    Equity income in investee   (12 )     (0.01 )     (7 )     —       (6 )     —       (33 )     (0.02 )     (16 )     (0.01 )
    Amortization of acquisition-related intangibles   584       0.36       585       0.36       635       0.39       2,394       1.46       2,811       1.73  
    Acquisition-related and other costs (1)   46       0.03       56       0.03       61       0.04       187       0.11       262       0.16  
    Inventory loss at contract manufacturer (2)   —       —       —       —       —       —       65       0.04       —       —  
    Restructuring charges (3)   186       0.11       —       —       —       —       186       0.11       —       —  
    Income tax provision   152       0.10       (251 )     (0.15 )     (483 )     (0.30 )     (429 )     (0.25 )     (988 )     (0.61 )
    Non-GAAP net income / earnings per share $ 1,777     $ 1.09     $ 1,504     $ 0.92     $ 1,249     $ 0.77     $ 5,420     $ 3.31     $ 4,302     $ 2.65  
    (1 )   Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, contract termination costs and workforce rebalancing charges.
    (2 )   Inventory loss at contract manufacturer is related to an incident at a third-party contract manufacturing facility.
    (3 )   Restructuring charges are related to the 2024 Restructuring Plan which comprised of employee severance charges and non-cash asset impairments.
           

    About AMD
    For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, LinkedIn and X pages.

    Cautionary Statement

    This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as, the opportunities for continued growth based on AMD’s product portfolio and growing demand for high-performance and adaptive computing; AMD’s ability to position itself for long-term growth and value creation; the features, functionality, performance, availability, timing and expected benefits of future AMD products; and AMD’s expected first quarter 2025 financial outlook, including revenue and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; Nvidia’s dominance in the graphics processing unit market and its aggressive business practices; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD’s ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD’s ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD’s products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD’s ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD’s reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD’s reliance on Microsoft and other software vendors’ support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD’s supply chain; AMD’s ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; long-term impact of climate change on AMD’s business; impact of government actions and regulations such as export regulations, tariffs and trade protection measures; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; impact of acquisitions, joint ventures and/or strategic investments on AMD’s business and AMD’s ability to integrate acquired businesses; our ability to complete the acquisition of ZT Systems;  impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain qualified personnel; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.

    (*) In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating expenses/revenue%, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2024, AMD used a non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD also provided adjusted EBITDA, free cash flow and free cash flow margin as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of February 4, 2025, and assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD’s control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law.

    © 2025 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, 3D V-Cache, Alveo, AMD Instinct, EPYC, FidelityFX, Kria, Radeon, Ryzen, Threadripper, Ultrascale+, Versal, Zynq, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.

    ADVANCED MICRO DEVICES, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Millions except per share amounts and percentages) (Unaudited)

      Three Months Ended   Year Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    Net revenue $ 7,658     $ 6,819     $ 6,168     $ 25,785     $ 22,680  
    Cost of sales   3,524       3,167       3,042       12,114       11,278  
    Amortization of acquisition-related intangibles   252       233       215       946       942  
    Total cost of sales   3,776       3,400       3,257       13,060       12,220  
    Gross profit   3,882       3,419       2,911       12,725       10,460  
    Gross margin   51 %     50 %     47 %     49 %     46 %
    Research and development   1,712       1,636       1,511       6,456       5,872  
    Marketing, general and administrative   792       721       644       2,783       2,352  
    Amortization of acquisition-related intangibles   332       352       420       1,448       1,869  
    Licensing gain   (11 )     (14 )     (6 )     (48 )     (34 )
    Restructuring charges   186       —       —       186       —  
    Operating income   871       724       342       1,900       401  
    Interest expense   (19 )     (23 )     (27 )     (92 )     (106 )
    Other income (expense), net   37       36       49       181       197  
    Income before income taxes and equity income   889       737       364       1,989       492  
    Income tax provision (benefit)   419       (27 )     (297 )     381       (346 )
    Equity income in investee   12       7       6       33       16  
    Net income $ 482     $ 771     $ 667     $ 1,641     $ 854  
    Earnings per share                  
    Basic $ 0.30     $ 0.48     $ 0.41     $ 1.01     $ 0.53  
    Diluted $ 0.29     $ 0.47     $ 0.41     $ 1.00     $ 0.53  
    Shares used in per share calculation                  
    Basic   1,623       1,620       1,616       1,620       1,614  
    Diluted   1,634       1,636       1,628       1,637       1,625  

    ADVANCED MICRO DEVICES, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Millions)

      December 28,
    2024    		   December 30,
    2023
      (Unaudited)    
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 3,787     $ 3,933  
    Short-term investments   1,345       1,840  
    Accounts receivable, net   6,192       4,323  
    Inventories   5,734       4,351  
    Receivables from related parties   113       9  
    Prepaid expenses and other current assets   1,878       2,312  
    Total current assets   19,049       16,768  
    Property and equipment, net   1,802       1,589  
    Operating lease right-of-use assets   623       633  
    Goodwill   24,839       24,262  
    Acquisition-related intangibles, net   18,930       21,363  
    Investment: equity method   149       99  
    Deferred tax assets   688       366  
    Other non-current assets   3,146       2,805  
    Total Assets $ 69,226     $ 67,885  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 1,990     $ 2,055  
    Payables to related parties   476       363  
    Accrued liabilities   4,260       3,082  
    Current portion of long-term debt, net   —       751  
    Other current liabilities   555       438  
    Total current liabilities   7,281       6,689  
    Long-term debt, net of current portion   1,721       1,717  
    Long-term operating lease liabilities   491       535  
    Deferred tax liabilities   349       1,202  
    Other long-term liabilities   1,816       1,850  
           
    Stockholders’ equity:      
    Capital stock:      
    Common stock, par value   17       17  
    Additional paid-in capital   61,362       59,676  
    Treasury stock, at cost   (6,106 )     (4,514 )
    Retained earnings   2,364       723  
    Accumulated other comprehensive loss   (69 )     (10 )
    Total stockholders’ equity   57,568       55,892  
    Total Liabilities and Stockholders’ Equity $ 69,226     $ 67,885  

    ADVANCED MICRO DEVICES, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Millions) (Unaudited)

      Three Months Ended   Year Ended
      December 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    Cash flows from operating activities:              
    Net income $ 482     $ 667     $ 1,641     $ 854  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation and amortization   172       164       671       642  
    Amortization of acquisition-related intangibles   583       635       2,393       2,811  
    Stock-based compensation   339       374       1,407       1,384  
    Amortization of operating lease right-of-use assets   31       25       113       98  
    Deferred income taxes   (300 )     (219 )     (1,163 )     (1,019 )
    Inventory loss at contract manufacturer   —       —       65       —  
    Other   62       (23 )     12       (54 )
    Changes in operating assets and liabilities              
    Accounts receivable, net   96       (379 )     (1,865 )     (1,339 )
    Inventories   (362 )     94       (1,458 )     (580 )
    Prepaid expenses and other assets   494       (34 )     343       (383 )
    Receivables from and payables to related parties, net   30       29       108       (107 )
    Accounts payable   (585 )     (181 )     (109 )     (419 )
    Accrued and other liabilities   257       (771 )     883       (221 )
    Net cash provided by operating activities   1,299       381       3,041       1,667  
    Cash flows from investing activities:              
    Purchases of property and equipment   (208 )     (139 )     (636 )     (546 )
    Purchases of short-term investments   (786 )     (410 )     (1,493 )     (3,722 )
    Proceeds from maturity of short-term investments   65       770       1,416       2,687  
    Proceeds from sale of short-term investments   25       52       616       300  
    Acquisitions, net of cash acquired   —       (117 )     (548 )     (131 )
    Related party equity method investment   —       —       (17 )     —  
    Issuance of loan to related party   (100 )     —       (100 )     —  
    Purchase of strategic investments   (210 )     (6 )     (341 )     (11 )
    Other   —       —       2       —  
    Net cash provided by (used in) investing activities   (1,214 )     150       (1,101 )     (1,423 )
    Cash flows from financing activities:              
    Repayment of debt   —       —       (750 )     —  
    Proceeds from sales of common stock through employee equity plans   127       120       279       268  
    Repurchases of common stock   (256 )     (233 )     (862 )     (985 )
    Common stock repurchases for tax withholding on employee equity plans   (42 )     (45 )     (728 )     (427 )
    Other   —       (1 )     (1 )     (2 )
    Net cash used in financing activities   (171 )     (159 )     (2,062 )     (1,146 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   (86 )     372       (122 )     (902 )
    Cash, cash equivalents and restricted cash at beginning of period   3,897       3,561       3,933       4,835  
    Cash, cash equivalents and restricted cash at end of period $ 3,811     $ 3,933     $ 3,811     $ 3,933  

    ADVANCED MICRO DEVICES, INC.
    SELECTED CORPORATE DATA
    (Millions) (Unaudited)

      Three Months Ended   Year Ended
      December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    Segment and Category Information(1)                  
    Data Center                  
    Net revenue $ 3,859     $ 3,549     $ 2,282     $ 12,579     $ 6,496  
    Operating income $ 1,157     $ 1,041     $ 666     $ 3,482     $ 1,267  
    Client                  
    Net revenue $ 2,313     $ 1,881     $ 1,461     $ 7,054     $ 4,651  
    Operating income (loss) $ 446     $ 276     $ 55     $ 897     $ (46 )
    Gaming                  
    Net revenue $ 563     $ 462     $ 1,368     $ 2,595     $ 6,212  
    Operating income $ 50     $ 12     $ 224     $ 290     $ 971  
    Embedded                  
    Net revenue $ 923     $ 927     $ 1,057     $ 3,557     $ 5,321  
    Operating income $ 362     $ 372     $ 461     $ 1,421     $ 2,628  
    All Other                  
    Net revenue $ —     $ —     $ —     $ —     $ —  
    Operating loss $ (1,144 )   $ (977 )   $ (1,064 )   $ (4,190 )   $ (4,419 )
    Total                  
    Net revenue $ 7,658     $ 6,819     $ 6,168     $ 25,785     $ 22,680  
    Operating income $ 871     $ 724     $ 342     $ 1,900     $ 401  
                       
    Other Data                  
    Capital expenditures $ 208     $ 132     $ 139     $ 636     $ 546  
    Adjusted EBITDA (2) $ 2,212     $ 1,887     $ 1,576     $ 6,824     $ 5,496  
    Cash, cash equivalents and short-term investments $ 5,132     $ 4,544     $ 5,773     $ 5,132     $ 5,773  
    Free cash flow (3) $ 1,091     $ 496     $ 242     $ 2,405     $ 1,121  
    Total assets $ 69,226     $ 69,636     $ 67,885     $ 69,226     $ 67,885  
    Total debt $ 1,721     $ 1,720     $ 2,468     $ 1,721     $ 2,468  
    (1 )   The Data Center segment primarily includes Artificial Intelligence (AI) accelerators, server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs) and Adaptive System-on-Chip (SoC) products for data centers.
        The Client segment primarily includes CPUs, APUs, and chipsets for desktops and notebooks.
        The Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services.
        The Embedded segment primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.
        From time to time, the Company may also sell or license portions of its IP portfolio.
        All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as amortization of acquisition-related intangible asset, employee stock-based compensation expense, acquisition-related and other costs, inventory loss at contract manufacturer, restructuring charges and licensing gain.
         
    (2 )   Reconciliation of GAAP Net Income to Adjusted EBITDA
      Three Months Ended   Year Ended
    (Millions) (Unaudited) December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP net income $ 482     $ 771     $ 667     $ 1,641     $ 854  
    Interest expense   19       23       27       92       106  
    Other (income) expense, net   (37 )     (36 )     (49 )     (181 )     (197 )
    Income tax provision (benefit)   419       (27 )     (297 )     381       (346 )
    Equity income in investee   (12 )     (7 )     (6 )     (33 )     (16 )
    Stock-based compensation   339       351       374       1,407       1,380  
    Depreciation and amortization   186       171       164       685       642  
    Amortization of acquisition-related intangibles   584       585       635       2,394       2,811  
    Inventory loss at contract manufacturer   —       —       —       65       —  
    Acquisition-related and other costs   46       56       61       187       262  
    Restructuring charges   186       —       —       186       —  
    Adjusted EBITDA $ 2,212     $ 1,887     $ 1,576     $ 6,824     $ 5,496  
    The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other (income) expense, net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization expense, amortization of acquisition-related intangibles, inventory loss at contract manufacturer, acquisition-related and other costs, and restructuring charges. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.
    (3 )   Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow
      Three Months Ended   Year Ended
    (Millions except percentages) (Unaudited) December 28,
    2024    		   September 28,
    2024    		   December 30,
    2023    		   December 28,
    2024    		   December 30,
    2023
    GAAP net cash provided by operating activities $ 1,299     $ 628     $ 381     $ 3,041     $ 1,667  
    Operating cash flow margin %   17 %     9 %     6 %     12 %     7 %
    Purchases of property and equipment   (208 )     (132 )     (139 )     (636 )     (546 )
    Free cash flow $ 1,091     $ 496     $ 242     $ 2,405     $ 1,121  
    Free cash flow margin %   14 %     7 %     4 %     9 %     5 %
    The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company’s net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.
     

    Media Contact:
    Drew Prairie
    AMD Communications
    512-602-4425
    drew.prairie@amd.com

    Investor Contact:
    Matt Ramsay
    AMD Investor Relations
    512-602-0113
    matthew.ramsay@amd.com

    The MIL Network –

  • MIL-OSI: Greystone Housing Impact Investors LP Announces Sale of Vantage at Tomball

    Source: GlobeNewswire (MIL-OSI)

    OMAHA, Neb., Feb. 04, 2025 (GLOBE NEWSWIRE) — Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced today that on January 31, 2025, Vantage at Tomball, a 288-unit market rate multifamily property located in Tomball, TX, was sold at the direction of its managing member. The Partnership’s investment in Vantage at Tomball was originated in August 2020 and the Partnership contributed equity totaling $11.4 million. As a result of the sale, the Partnership’s equity investment in the property was redeemed. At closing of the sale, the Partnership received net cash of approximately $14.2 million, consisting of the return of its contributed equity and accrued preferred return. The Partnership estimates it will not recognize any gain, loss, or Cash Available for Distribution upon sale.

    “The proceeds from the sale of Vantage at Tomball will allow the Partnership to deploy capital into new accretive investments across our investment classes,” said Kenneth C. Rogozinski, Chief Executive Officer of the Partnership. “The Partnership’s overall return on the Vantage at Tomball investment was less than what has historically been achieved on prior equity investments due to rising insurance costs in the Houston metropolitan area as well as the higher interest rate environment since the last joint venture equity sale of the Vantage at Conroe investment in June 2023. However, we continue to believe in the long-term value of our multifamily property joint venture equity investment strategy.”

    Disclosure Regarding Non-GAAP Measures

    This report refers to Cash Available for Distribution (“CAD”), which is identified as a non-GAAP financial measure. We believe CAD provides relevant information about the Partnership’s operations and is necessary, along with net income, for understanding its operating results. Net income is the GAAP measure most comparable to CAD. There is no generally accepted methodology for computing CAD, and our computation of CAD may not be comparable to CAD reported by other companies. Although we consider CAD to be a useful measure of our operating performance, CAD is a non-GAAP measure and should not be considered as an alternative to net income that is calculated in accordance with GAAP, or any other measures of financial performance presented in accordance with GAAP. For the amounts disclosed herein related to this transaction, there are no reconciling items between net income per BUC, basic and diluted, and CAD per BUC, basic and diluted.

    About Greystone Housing Impact Investors LP

    Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at  www.ghiinvestors.com.

    Safe Harbor Statement

    Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    INVESTOR CONTACT:
    Andy Grier
    Senior Vice President
    402-952-1235

    MEDIA CONTACT:
    Karen Marotta
    Greystone
    212-896-9149
    Karen.Marotta@greyco.com 

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The MIL Network –

  • MIL-OSI Economics: NOIA Applauds Secretary Burgum’s Actions on Offshore Energy

    Source: National Ocean Industries Association – NOIA

    Headline: NOIA Applauds Secretary Burgum’s Actions on Offshore Energy

    For Immediate Release: Tuesday, February 4, 2025NOIA .org
    NOIA Applauds Secretary Burgum’s Actions on Offshore Energy
    Washington, D.C. – National Ocean Industries Association President Erik Milito expressed its strong support for the series of Secretarial Orders signed by Secretary Doug Burgum to unleash America’s energy potential:
    “NOIA strongly supports Secretary Doug Burgum’s decisive actions to strengthen American energy security, reinforce national security, and unleash the full potential of the U.S. offshore energy industry. These Secretarial Orders send a powerful message: American energy leadership is back.
    “By addressing burdensome regulatory barriers—including a much-needed reassessment of the inadequate 2024-2029 offshore oil and gas leasing program—these actions will align U.S. energy policy with the nation’s current and future needs. They will enhance energy security, bolster national defense, grow our economy, and keep energy affordable for every household and business, reducing reliance on foreign adversaries.
    “By restoring regulatory certainty, attracting investment, and creating high-quality jobs while maintaining high levels of environmental stewardship, these reforms will strengthen America’s position as the global energy leader. NOIA looks forward to working with Secretary Burgum and DOI leadership to implement these critical policies and secure a stronger offshore energy future.”
    ##
    About NOIA The National Ocean Industries Association (NOIA) represents and advances a dynamic and growing offshore energy industry, providing solutions that support communities and protect our workers, the public and our environment.

    MIL OSI Economics –

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

    Source: Verizon

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

    [TL;DR]

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

    [Big News]

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

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

    [Why it matters]

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

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

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

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

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

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

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

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

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

    [The benefits of Verizon’s plans and perks]

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

    Here’s what makes myPlan and myHome so unique:

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

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

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

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

    MIL OSI Economics –

  • MIL-OSI United Nations: World News in Brief: ‘Ruthless assault on human life’ in Sudan, Gaza ceasefire must hold says relief chief, World Cancer Day

    Source: United Nations 4

    Peace and Security

    The UN Humanitarian Coordinator in Sudan has again urged warring parties to stop targeting civilians. 

    Clementine Nkweta-Salami issued a statement on Tuesday lamenting the “relentless” intensifying shelling, air and drone strikes against civilians in the Darfur and Kordofan regions, and other conflict-affected areas.

    The Sudanese Armed Forces (SAF) and military rivals the Rapid Support Forces (RSF) have been locked in a battle for power since April 2023, causing widespread death, destruction and displacement.

    Indiscriminate attacks ‘deeply alarming’

    “Reports of continued indiscriminate attacks on homes, markets and displacement camps are deeply alarming,” said Ms. Nkweta-Salami.  “This is not warfare – this is a ruthless assault on human life.”

    Furthermore, “the use of starvation as a weapon of war against innocent people in Al Fasher, North Darfur, is appalling.”

    She stressed that the laws of war are clear, noting that all sides to the conflict have a legal and moral obligation to protect civilians and civilian infrastructure.

    “The world cannot look away as civilians are caught in the crossfire, bearing the brunt of a war that continues to disregard the most fundamental rules of armed conflict and international humanitarian law,” she said.

    The senior official once again called on all sides to respect international humanitarian law, stop targeting civilians and civilian infrastructure, and allow immediate, unimpeded humanitarian access to those in need. 

    “This war must not continue to be fought at the expense of the lives of innocent Sudanese children, women and men,” she said.

    Gaza ceasefire must hold, UN relief chief notes during visit to Israel and OPT

    The UN’s top aid official continues his week-long visit to Israel and the Occupied Palestinian Territory focused on engaging with authorities, aid partners and those on the frontlines of the humanitarian response.

    Emergency Relief Coordinator Tom Fletcher was in Nir Oz in southern Israel on Tuesday, where a quarter of all residents were killed or taken hostage in the Hamas-led attack on 7 October 2023. 

     In a social media post, he stressed that the ceasefire must hold, that all civilians must be protected, and that all hostages must be freed. 

    Aid to Gaza

    Mr. Fletcher also held several meetings with Israeli officials, both on Tuesday and on Monday night.

    They discussed ways to sustain the surge of humanitarian support to Gaza, as well as the ongoing challenges in the West Bank, where violence has risen. 

    The UN and humanitarian partners estimate more than 565,000 people have crossed from the south of Gaza to the north since 27 January, while more than 45,000 people have been observed making the journey from the north to the south.  

    Mr. Fletcher arrived in the region on Monday and met Palestinian Prime Minister Mohammad Mustafa, in addition to holding separate talks with the president of the Palestine Red Cresent Society. 

    © Unsplash/National Cancer Institute

    Regular mammograms can help find breast cancer at an early stage.

    WHO honours people affected by cancer on World Day against the disease

    This Tuesday, 4 February, is World Cancer Day and UN health agency WHO is honouring the courage of people affected by the disease and celebrating scientific progress to treat it.

    “Every minute, 40 people are diagnosed with cancer globally, and embark on a journey to overcome it,” WHO chief Tedros Adhanom Ghebreyesus noted in a post on the social media platform X.

    He said that “around the world, WHO is working with partners to create global coalitions, catalyze local action and amplify the voices of people affected by cancer.”

    Its efforts to improve the lives of millions include providing medicines for paediatric cancers as well as a global campaign aimed at eliminating cervical cancer.

    Tedros also used the commemoration of World Cancer Day to affirm WHO’s commitment to health for all. 

    MIL OSI United Nations News –

  • MIL-OSI United Nations: Deadly attacks in eastern Aleppo highlight Syria’s vulnerability

    Source: United Nations 4

    By Vibhu Mishra

    Peace and Security

    The United Nations on Tuesday condemned a deadly car bomb attack in the Syrian city of Manbij that killed 20 people, mostly women, and left many others critically injured.

    The explosion on Monday – close to the Turkish border – targeted a vehicle transporting seasonal agricultural workers. According to news reports, at least 11 women and three children were among the dead.

    It follows another attack just days earlier that killed four civilians and injured nine others, including six children. Monday’s car bombing was reportedly the seventh in just over a month and it marks the deadliest attack inside Syria since the fall of the Assad regime.

    The area has been a battleground for Turkish-backed forces and mostly Kurdish fighters. No group has claimed responsibility for Monday’s attack so far.

    “We reiterate that all parties must uphold their obligations under international humanitarian law to protect civilians,” said UN Spokesperson Stéphane Dujarric, briefing journalists in New York.

    “Civilians and civilian infrastructure should never be targeted.”

    Thousands displaced

    Meanwhile, hostilities persist in northeast Syria, particularly in eastern Aleppo, Al-Hasakeh and Ar-Raqqa, where over 25,000 have been displaced.

    Shelling, airstrikes, and ongoing clashes have devastated communities, leading to widespread destruction of homes, hospitals, and essential infrastructure, according to a humanitarian bulletin issued by UN relief coordination office, OCHA.

    Across the country, lack of public services and funding have made it difficult for humanitarian organizations to respond.

    In Homs and Hama, electricity is available for only 45 to 60 minutes every eight hours, while in northwest Syria, more than 100 health facilities have run out of funding since the start of the year.

    The UN and its partners are appealing for $1.2 billion to assist 6.7 million of Syria’s most vulnerable people through March 2025.

    Humanitarian efforts

    Despite the challenges, UN agencies and partners continue their efforts to deliver assistance and monitor the situation, as security allows.

    On February 3, a UN cross-border mission from Türkiye to Idlib assessed cash distribution efforts – part of a broader effort to reach communities in need.

    “So far in 2025, we completed 40 cross-border missions to Syria, mostly to monitor and assess projects – nearly double the number of missions that we had at the same time last year,” Mr. Dujarric said.

    On January 30, UN teams also conducted an assessment mission to Sweida, close to the Jordanian border, marking the first UN presence in the area since October 2023. The visit revealed critical shortages of drinking water and irrigation resources, exacerbated by years of drought.

    © UNICEF/Muhannad Aldhaher

    Refugee returns

    Meanwhile, a recent survey by the UN refugee agency, UNHCR, found that 27 per cent of Syrian refugees in Jordan, Lebanon, Iraq and Egypt, plan to return home within the next 12 months – a sharp increase from less than 2 per cent recorded in April last year.

    Since the fall of the Assad regime in December, to 23 January, over 210,000 Syrians have returned with many facing challenges related to destroyed property, lack of infrastructure, and security concerns.

    Internally displaced persons (IDPs) within Syria are also beginning to return home, albeit in small numbers.

    Since early December, approximately 57,000 IDPs – mostly single-family groups or individuals – have left IDP camps.

    However, nearly two million people remain in over 1,500 camps across Idlib and northern Aleppo, where safety concerns and a lack of essential services continue to hinder returns.

    MIL OSI United Nations News –

  • MIL-OSI New Zealand: Housing Market – First home buyers well placed for 2025 – CoreLogic

    Source: CoreLogic – Commentary from Kelvin Davidson, CoreLogic NZ Chief Property Economist

    In today’s Pulse, CoreLogic NZ’s Chief Property Economist Kelvin Davidson looks at the conditions facing first home buyers (FHBs) in 2025, with the data pointing to favourable market conditions – although their percentage share of activity may not hold at recent record highs.

    Even if mortgaged investors and movers do take a greater proportion of activity in 2025, FHBs are still likely to buy a higher number of properties than they did last year.
    Put simply, a larger overall number of transactions in 2025 should ‘float all boats’.

    A look back at 2024The full-year CoreLogic Buyer Classification data for 2024 showed another strong performance from first home buyers (FHBs), making up 26.1% of property purchases. That was a new record high, surpassing the previous mark of 25.7% set the previous year. Granted, at around 20,850, the number of FHB purchases had been beaten on seven previous occasions since 2005 (including each year from 2019 to 2021), but it was still a solid year on that measure too.

    Why have FHBs proven successful? Access to KiwiSaver for at least part of the deposit is one factor, while they have also been making full use of the low-deposit lending allowances at the banks. Getting around the loan to value ratio rules by purchasing new-build properties is another popular option at present, and we estimate that FHBs accounted for about 27% of new-build buying activity in 2024.
    FHBs have also been taking advantage of plenty of choice (total available listings are high) and the soft market – their median price paid in 2024 was $698,000 (down from $719,000 in 2022). 
    They are also benefiting from reduced competition. For example, ‘movers’ or relocating owner-occupiers ‘only’ accounted for 26.5% of activity last year, which is about 2%-points below their average.
    At the same time, mortgaged multiple property owners (MPOs including investors) have had a tricky few years too, with their share of activity at 21.7% in 2024, versus the average since 2005 of around 24.5%.
    That’s not too surprising, given that typical mortgage rates were above 7% for at least the first half of 2024, meaning that significant top-ups out of other income were required to sustain a standard new rental purchase. Interest deductibility was back to 80% for most of the 2024 calendar year, but the Brightline Test only came down on 1st July 2024 while the deposit rules were eased from 35% to 30% on the same day.
    2025 outlook
    Looking ahead, our expectation is that overall property sales volumes will rise from around 80,000 in 2024 to 90,000 in 2025, reflecting the lagged effects of lower mortgage rates and the anticipation of a growing economy again, albeit slowly. 
    That being said, further job losses in the near term are unfortunately looking likely, and debt to income ratio limits will also become a consideration, although the ‘generous’ 20% speed limit and the new-build exemption should mean they don’t put a hard stop on activity.
    In this environment, it would not be a surprise to see a higher number of deals from all buyer groups, especially the three main cohorts of FHBs, mortgaged investors, and movers.
    Anecdotally, we have seen evidence that movers are starting to become more active again as housing chains free up, especially in the ‘next home’ segment (i.e. previous FHBs who are now looking to trade up), while mortgaged investors have also shown clear signs of a comeback.
    Although mortgaged investors’ calendar-year market share in 2024 was still quite low, the quarter-by-quarter figures had turned up by the end of year, hitting 22.6% in Q4 – their strongest result since the middle of 2022. Our more granular analysis shows that this was driven primarily by smaller/new investors (those who now own two properties in total after their latest purchase), or the cliched ‘Mums and Dads’.
    To illustrate the impact of lower mortgage rates on those top-ups: If you plug in a purchase price of $780,000 (the median paid by mortgaged MPOs in 2024), assume 30% deposit, 4% gross rental yield, interest-only mortgage (and 100% deductibility), a drop in mortgage rates from around 7% to about 5.5% broadly cuts the weekly cash requirement from $350 to $200. That’s still significant for a new investor, but much less of a hurdle than before.
    A story of many buyers
    Looking ahead, 2025 looks set to be busier year for the property market in general and across the various buyer groups. However, market share must always equal 100%, and even though FHBs will likely buy more properties this year than last, it is still conceivable that their percentage share of activity will drop back from recent record highs, as mortgaged investors and movers return closer to their normal positions.
    In turn, that may well prompt fears or headlines that first home buyers are being shut out again. But as an example, they could see their market share drop to 24% this year and still purchase about 1,000 more properties than in 2024. In other words, a lower market share doesn’t mean the demise of FHBs.

    MIL OSI New Zealand News –

  • MIL-OSI: Enphase Energy Reports Financial Results for the Fourth Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the fourth quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.

    We reported quarterly revenue of $382.7 million in the fourth quarter of 2024, along with 53.2% for non-GAAP gross margin. We shipped approximately 2.01 million microinverters, or 878.0 megawatts DC, and 152.4 megawatt hours of IQ® Batteries.

    Financial highlights for the fourth quarter of 2024 are listed below:

    • Strong U.S. manufacturing: shipped 1.69 million microinverters and 6.7 megawatt hours of IQ Batteries
    • Quarterly revenue of $382.7 million
    • GAAP gross margin of 51.8%; non-GAAP gross margin of 53.2% with net IRA benefit
    • Non-GAAP gross margin of 39.7%, excluding net IRA benefit of 13.5%
    • GAAP operating income of $54.8 million; non-GAAP operating income of $120.4 million
    • GAAP net income of $62.2 million; non-GAAP net income of $125.9 million
    • GAAP diluted earnings per share of $0.45; non-GAAP diluted earnings per share of $0.94
    • Free cash flow of $159.2 million; ending cash, cash equivalents, restricted cash and marketable securities of $1.72 billion

    Our revenue and earnings for the fourth quarter of 2024 are provided below, compared with the prior quarter:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      Q4 2024   Q3 2024   Q4 2023   Q4 2024   Q3 2024   Q4 2023
    Revenue $ 382,713     $ 380,873     $ 302,570     $ 382,713     $ 380,873     $ 302,570  
    Gross margin   51.8 %     46.8 %     48.5 %     53.2 %     48.1 %     50.3 %
    Operating expenses $ 143,489     $ 128,383     $ 156,893     $ 83,322     $ 81,612     $ 86,551  
    Operating income (loss) $ 54,804     $ 49,788     $ (10,231 )   $ 120,434     $ 101,411     $ 65,587  
    Net income $ 62,160     $ 45,762     $ 20,919     $ 125,862     $ 88,402     $ 73,474  
    Basic EPS $ 0.46     $ 0.34     $ 0.15     $ 0.94     $ 0.65     $ 0.54  
    Diluted EPS $ 0.45     $ 0.33     $ 0.15     $ 0.94     $ 0.65     $ 0.54  
                                                   

    Our revenue and earnings for the fiscal year 2024 are provided below, compared with the prior year:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      FY 2024   FY 2023   FY 2024   FY 2023
    Revenue $ 1,330,383     $ 2,290,786     $ 1,330,383     $ 2,290,786  
    Gross margin   47.3 %     46.2 %     48.9 %     47.1 %
    Operating expenses $ 551,846     $ 612,647     $ 329,227     $ 382,115  
    Operating income $ 77,292     $ 445,741     $ 321,919     $ 697,210  
    Net income $ 102,658     $ 438,936     $ 321,044     $ 613,241  
    Basic EPS $ 0.76     $ 3.22     $ 2.37     $ 4.50  
    Diluted EPS $ 0.75     $ 3.08     $ 2.37     $ 4.41  
                                   

    Total revenue for the fourth quarter of 2024 was $382.7 million, compared to $380.9 million in the third quarter of 2024. Our revenue in the United States for the fourth quarter of 2024 increased approximately 6%, compared to the third quarter. The increase in revenue was due to higher microinverter sales. Our revenue in Europe decreased approximately 25% for the fourth quarter of 2024, compared to the third quarter. The decline in revenue was the result of a further softening in European demand.

    Our non-GAAP gross margin was 53.2% in the fourth quarter of 2024, compared to 48.1% in the third quarter. Our non-GAAP gross margin, excluding net IRA benefit, was 39.7% in the fourth quarter of 2024, compared to 38.9% in the third quarter.

    Our non-GAAP operating expenses were $83.3 million in the fourth quarter of 2024, compared to $81.6 million in the third quarter. The increase was driven by higher R&D expense on new products. Our non-GAAP operating income was $120.4 million in the fourth quarter of 2024, compared to $101.4 million in the third quarter.

    We exited the fourth quarter of 2024 with $1.72 billion in cash, cash equivalents, restricted cash and marketable securities and generated $167.3 million in cash flow from operations in the fourth quarter. Our capital expenditures were $8.1 million in the fourth quarter of 2024, compared to $8.5 million in the third quarter of 2024.

    In the fourth quarter of 2024, we repurchased 2,883,438 shares of our common stock at an average price of $69.25 per share for a total of approximately $199.7 million. We also spent approximately $5.0 million by withholding shares to cover taxes for employee stock vesting that reduced the diluted shares by 68,532 shares.

    We shipped 152.4 megawatt hours of IQ Batteries in the fourth quarter of 2024, compared to 172.9 megawatt hours in the third quarter. More than 10,300 installers worldwide are certified to install our IQ Batteries, compared to more than 9,000 installers worldwide in the third quarter of 2024.

    During the fourth quarter of 2024, we shipped approximately 1.69 million microinverters from our contract manufacturing facilities in the United States that we booked for 45X production tax credits. We also expanded our higher domestic content product offerings, and shipped our IQ8HC™ Microinverters, IQ8X™ Microinverters, IQ8P-3P™ Commercial Microinverters, and IQ® Battery 5Ps, all with higher domestic content than previous models and produced at our contract manufacturing facilities in the United States.

    During the fourth quarter of 2024, we made great strides with the IQ® Meter Collar, fourth-generation IQ Battery, and new IQ® Combiner products. We launched the IQ® PowerPack 1500, a 1.5 kWh smart, portable energy system for home, work, and on-the-go use. In Europe, we introduced the IQ® EV Charger 2, a next-generation smart charger that integrates with our solar and battery systems seamlessly or works as a standalone. In January 2025, we began shipping the IQ® Battery 5P™ with FlexPhase to Germany, Austria, and Switzerland, delivering reliable backup power for both single- and three-phase installations.

    BUSINESS HIGHLIGHTS

    On Jan. 30, 2025, Enphase Energy announced that it is expanding in Southeast Asia by entering the solar markets in Vietnam and Malaysia with IQ8P™ Microinverters.

    On Jan. 27, 2025, Enphase Energy announced integration with Octopus Energy’s smart tariffs in the UK, such as “Intelligent Octopus Flux” (IO Flux), which can help customers save money on electricity bills.

    On Jan. 23, 2025, Enphase Energy announced that its IQ8™ Microinverters for residential and commercial applications, are now in compliance with the Build America, Buy America (BABA) Act.

    On Jan. 13, 2025, Enphase Energy announced shipments of its most powerful and versatile battery yet, the IQ Battery 5P with FlexPhase, for customers in Germany, Austria, and Switzerland. With reliable backup power and support for single- and three-phase systems, it offers unmatched flexibility for home energy needs.

    On Jan. 9, 2025, Enphase Energy announced that it is expanding into Latin America with IQ8P Microinverters, bringing solar solutions to Colombia, Panama, and Costa Rica for residential and commercial use. 

    On Jan. 7, 2025, Enphase Energy announced that IQ8 Microinverters were selected for a 2.2 MW solar project at the Belgoprocess radioactive waste facility in Dessel, Belgium. 

    On Dec. 17, 2024, Enphase Energy announced initial shipments of its most powerful home battery to-date, the IQ Battery 5P, for customers in India. 

    On Dec. 5 and Dec. 9, 2024, Enphase Energy announced collaborations with two energy providers in the Netherlands, Frank Energie and NextEnergy, to enable participation in the grid imbalance energy marketplace.

    On Dec. 3, 2024, Enphase Energy announced the launch of Busbar Power Control software that empowers homeowners to install larger solar and battery systems without costly main electrical panel upgrades.

    On Nov. 11, 2024, Enphase Energy announced an AI-powered do-it-yourself (DIY) permitting feature on Solargraf®, to automate the complex solar permitting process for installers in the USA.

    On Nov. 4, 2024, Enphase Energy announced the launch of its most powerful Enphase Energy System to-date, featuring the IQ Battery 5P and IQ8 Microinverters, for customers in Romania.

    FIRST QUARTER 2025 FINANCIAL OUTLOOK

    For the first quarter of 2025, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

    • Revenue to be within a range of $340.0 million to $380.0 million, which includes shipments of 150 to 170 megawatt hours of IQ Batteries. The first quarter of 2025 financial outlook includes approximately $50.0 million of safe harbor revenue. We define safe harbor revenue as any sales made to customers who plan to install the inventory over more than one year.
    • GAAP gross margin to be within a range of 46.0% to 49.0% with net IRA benefit
    • Non-GAAP gross margin to be within a range of 48.0% to 51.0% with net IRA benefit and 38.0% to 41.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization
    • Net IRA benefit to be within a range of $36.0 million to $39.0 million based on estimated shipments of 1,200,000 units of U.S. manufactured microinverters
    • GAAP operating expenses to be within a range of $143.0 million to $147.0 million
    • Non-GAAP operating expenses to be within a range of $81.0 million to $85.0 million, excluding $62.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization, restructuring and asset impairment charges

    For 2025, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%.

    Follow Enphase Online

    Use of non-GAAP Financial Measures

    Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.

    These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

    As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:

    Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.

    Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.

    Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs, accelerated stock-based compensation expense and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.

    Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.

    Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.

    Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.

    Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.

    Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.

    Conference Call Information

    Enphase Energy will host a conference call for analysts and investors to discuss its fourth quarter 2024 results and first quarter 2025 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 3831590, beginning approximately one hour after the call.

    Forward-Looking Statements

    This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its first quarter of 2025 financial outlook, including revenue, shipments of IQ Batteries by megawatt hours, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products, including the IQ Meter Collar, fourth-generation IQ Battery, and new IQ Combiner products; its expectations regarding higher domestic content product offerings; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

    A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.

    About Enphase Energy, Inc.

    Enphase Energy, a global energy technology company based in Fremont, CA, is the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 80.0 million microinverters, and approximately 4.7 million Enphase-based systems have been deployed in more than 160 countries. For more information, visit https://enphase.com/.

    ©2025 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines   are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

    Contact:

    Zach Freedman
    Enphase Energy, Inc.
    Investor Relations
    ir@enphaseenergy.com

    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
     
      Three Months Ended Year Ended
      December 31, 
    2024    		   September 30, 
    2024    		   December 31, 
    2023    		   December 31, 
    2024    		   December 31, 
    2023
    Net revenues $ 382,713     $ 380,873     $ 302,570     $ 1,330,383     $ 2,290,786  
    Cost of revenues   184,420       202,702       155,908       701,245       1,232,398  
    Gross profit   198,293       178,171       146,662       629,138       1,058,388  
    Operating expenses:                  
    Research and development   50,390       47,843       55,291       201,315       227,336  
    Sales and marketing   51,799       49,671       53,409       206,552       231,792  
    General and administrative   31,901       30,192       33,379       130,825       137,835  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,684  
    Total operating expenses   143,489       128,383       156,893       551,846       612,647  
    Income (loss) from operations   54,804       49,788       (10,231 )     77,292       445,741  
    Other income, net                  
    Interest income   18,417       19,977       20,493       77,306       69,728  
    Interest expense   (2,252 )     (2,237 )     (2,268 )     (8,905 )     (8,839 )
    Other income (expense), net   (1,270 )     (16,785 )     4,233       (25,534 )     6,509  
    Total other income, net   14,895       955       22,458       42,867       67,398  
    Income before income taxes   69,699       50,743       12,227       120,159       513,139  
    Income tax (provision) benefit   (7,539 )     (4,981 )     8,692       (17,501 )     (74,203 )
    Net income $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Net income per share:                  
    Basic $ 0.46     $ 0.34     $ 0.15     $ 0.76     $ 3.22  
    Diluted $ 0.45     $ 0.33     $ 0.15     $ 0.75     $ 3.08  
    Shares used in per share calculation:                  
    Basic   133,815       135,329       136,092       135,167       136,376  
    Diluted   138,128       139,914       139,205       140,004       143,290  
                                           
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      December 31,
    2024    		   December 31,
    2023
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 369,110   $ 288,748
    Restricted cash   95,006     —
    Marketable securities   1,253,480     1,406,286
    Accounts receivable, net   223,749     445,959
    Inventory   165,004     213,595
    Prepaid expenses and other assets   220,735     88,930
    Total current assets   2,327,084     2,443,518
    Property and equipment, net   147,514     168,244
    Operating lease, right of use asset, net   24,617     19,887
    Intangible assets, net   42,398     68,536
    Goodwill   211,571     214,562
    Other assets   180,925     215,895
    Deferred tax assets, net   315,567     252,370
    Total assets $ 3,249,676   $ 3,383,012
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 90,032   $ 116,164
    Accrued liabilities   196,887     261,919
    Deferred revenues, current   237,225     118,300
    Warranty obligations, current   34,656     36,066
    Debt, current   101,291     —
    Total current liabilities   660,091     532,449
    Long-term liabilities:      
    Deferred revenues, non-current   341,982     369,172
    Warranty obligations, non-current   158,233     153,021
    Other liabilities   55,265     51,008
    Debt, non-current   1,201,089     1,293,738
    Total liabilities   2,416,660     2,399,388
    Total stockholders’ equity   833,016     983,624
    Total liabilities and stockholders’ equity $ 3,249,676   $ 3,383,012
               
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Three Months Ended   Year Ended
      December 31, 
    2024    		   September 30, 
    2024    		   December 31, 
    2023    		   December 31, 
    2024    		   December 31, 
    2023
    Cash flows from operating activities:                  
    Net income $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Adjustments to reconcile net income to net cash provided by operating activities:                  
    Depreciation and amortization   20,665       20,103       20,841       81,389       74,708  
    Net accretion of discount on marketable securities   (7,490 )     (2,904 )     (2,950 )     (8,599 )     (15,561 )
    Provision for doubtful accounts   2,206       2,704       (129 )     6,677       1,153  
    Asset impairment   4,702       17,568       9,700       28,843       10,603  
    Non-cash interest expense   2,188       2,173       2,126       8,650       8,380  
    Net loss (gain) from change in fair value of debt securities   (3,697 )     741       (2,670 )     (1,967 )     (8,078 )
    Stock-based compensation   51,830       45,940       55,222       211,360       212,857  
    Deferred income taxes   (30,675 )     (5,276 )     (5,053 )     (58,319 )     (43,348 )
    Changes in operating assets and liabilities:                  
    Accounts receivable   2,684       49,414       105,771       211,640       (12,478 )
    Inventory   (6,167 )     17,231       (39,481 )     48,591       (63,887 )
    Prepaid expenses and other assets   (16,487 )     (64,149 )     (2,401 )     (134,343 )     (59,777 )
    Accounts payable, accrued and other liabilities   (27,396 )     32,088       (139,277 )     (85,536 )     (22,149 )
    Warranty obligations   8,657       7,053       221       3,802       57,641  
    Deferred revenues   104,112       1,690       12,611       98,847       117,780  
    Net cash provided by operating activities   167,292       170,138       35,450       513,693       696,780  
    Cash flows from investing activities:                  
    Purchases of property and equipment   (8,064 )     (8,533 )     (20,075 )     (33,604 )     (110,401 )
    Purchases of marketable securities   (93,138 )     (319,190 )     (337,757 )     (1,184,649 )     (2,081,431 )
    Maturities and sale of marketable securities   351,843       215,241       433,869       1,346,520       1,840,477  
    Investments in private companies   —       —       —       —       (15,000 )
    Net cash provided by (used in) investing activities   250,641       (112,482 )     76,037       128,267       (366,355 )
    Cash flows from financing activities:                  
    Partial settlement of convertible notes   —       (5 )     —       (7 )     —  
    Repurchase of common stock   (199,666 )     (49,794 )     (99,998 )     (391,364 )     (409,998 )
    Payment of excise tax on net stock repurchases   (2,773 )     —       —       (2,773 )     —  
    Proceeds from issuance of common stock under employee equity plans   4,719       14       12,555       12,688       13,870  
    Payment of withholding taxes related to net share settlement of equity awards   (5,012 )     (6,286 )     (27,546 )     (78,813 )     (120,646 )
    Net cash used in financing activities   (202,732 )     (56,071 )     (114,989 )     (460,269 )     (516,774 )
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (7,410 )     2,638       2,175       (6,323 )     1,853  
    Net increase (decrease) in cash and cash equivalents and restricted cash   207,791       4,223       (1,327 )     175,368       (184,496 )
    Cash and cash equivalents—Beginning of period   256,325       252,102       290,075       288,748       473,244  
    Cash, cash equivalents and restricted cash—End of period $ 464,116     $ 256,325     $ 288,748     $ 464,116     $ 288,748  
                                           
    ENPHASE ENERGY, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data and percentages)
    (Unaudited)
     
      Three Months Ended   Year Ended
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Gross profit (GAAP) $ 198,293     $ 178,171     $ 146,662     $ 629,138     $ 1,058,388  
    Stock-based compensation   3,678       2,948       3,582       14,538       13,357  
    Acquisition related amortization   1,784       1,904       1,894       7,469       7,580  
    Gross profit (Non-GAAP) $ 203,755     $ 183,023     $ 152,138     $ 651,145     $ 1,079,325  
                       
    Gross margin (GAAP)   51.8 %     46.8 %     48.5 %     47.3 %     46.2 %
    Stock-based compensation   0.9       0.8       1.2       1.0       0.6  
    Acquisition related amortization   0.5       0.5       0.6       0.6       0.3  
    Gross margin (Non-GAAP)   53.2 %     48.1 %     50.3 %     48.9 %     47.1 %
                       
    Operating expenses (GAAP) $ 143,489     $ 128,383     $ 156,893     $ 551,846     $ 612,647  
    Stock-based compensation (1)   (47,884 )     (42,992 )     (51,640 )     (196,554 )     (199,500 )
    Acquisition related expenses and amortization   (2,884 )     (3,102 )     (3,888 )     (12,911 )     (15,317 )
    Restructuring and asset impairment charges (1)   (9,399 )     (677 )     (14,814 )     (13,154 )     (15,715 )
    Operating expenses (Non-GAAP) $ 83,322     $ 81,612     $ 86,551     $ 329,227     $ 382,115  
                       
    (1) Includes stock-based compensation as follows:                  
    Research and development $ 20,951     $ 19,790     $ 23,839     $ 85,501     $ 88,367  
    Sales and marketing   15,893       14,237       16,472       65,092       65,703  
    General and administrative   11,041       8,965       11,329       45,962       45,430  
    Restructuring and asset impairment charges   267       —       —       267       —  
    Total $ 48,152     $ 42,992     $ 51,640     $ 196,822     $ 199,500  
                       
    Income (loss) from operations (GAAP) $ 54,804     $ 49,788     $ (10,231 )   $ 77,292     $ 445,741  
    Stock-based compensation   51,563       45,940       55,222       211,093       212,857  
    Acquisition related expenses and amortization   4,668       5,006       5,782       20,380       22,897  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,715  
    Income from operations (Non-GAAP) $ 120,434     $ 101,411     $ 65,587     $ 321,919     $ 697,210  
                       
    Net income (GAAP) $ 62,160     $ 45,762     $ 20,919     $ 102,658     $ 438,936  
    Stock-based compensation   51,563       45,940       55,222       211,093       212,857  
    Acquisition related expenses and amortization   4,668       5,006       5,782       20,380       22,897  
    Restructuring and asset impairment charges   9,399       677       14,814       13,154       15,715  
    Non-cash interest expense   2,188       2,173       2,126       8,650       8,380  
    Non-GAAP income tax adjustment   (4,116 )     (11,156 )     (25,389 )     (34,891 )     (85,544 )
    Net income (Non-GAAP) $ 125,862     $ 88,402     $ 73,474     $ 321,044     $ 613,241  
                       
    Net income per share, basic (GAAP) $ 0.46     $ 0.34     $ 0.15     $ 0.76     $ 3.22  
    Stock-based compensation   0.39       0.34       0.40       1.56       1.56  
    Acquisition related expenses and amortization   0.03       0.04       0.08       0.15       0.17  
    Restructuring and asset impairment charges   0.07       0.01       0.11       0.10       0.12  
    Non-cash interest expense   0.02       0.02       0.02       0.06       0.06  
    Non-GAAP income tax adjustment   (0.03 )     (0.10 )     (0.22 )     (0.26 )     (0.63 )
    Net income per share, basic (Non-GAAP) $ 0.94     $ 0.65     $ 0.54     $ 2.37     $ 4.50  
                       
    Shares used in basic per share calculation GAAP and Non-GAAP   133,815       135,329       136,092       135,167       136,376  
                       
    Net income per share, diluted (GAAP) $ 0.45     $ 0.33     $ 0.15     $ 0.75     $ 3.08  
    Stock-based compensation   0.39       0.33       0.39       1.56       1.57  
    Acquisition related expenses and amortization   0.04       0.04       0.08       0.15       0.16  
    Restructuring and asset impairment charges   0.07       0.01       0.10       0.10       0.11  
    Non-cash interest expense   0.02       0.02       0.01       0.06       0.06  
    Non-GAAP income tax adjustment   (0.03 )     (0.08 )     (0.19 )     (0.26 )     (0.57 )
    Net income per share, diluted (Non-GAAP) (2) $ 0.94     $ 0.65     $ 0.54     $ 2.37     $ 4.41  
                       
    Shares used in diluted per share calculation GAAP   138,128       139,914       139,205       140,004       143,290  
    Shares used in diluted per share calculation Non-GAAP   134,053       135,839       137,187       135,641       139,214  
                       
    Income-based government grants (GAAP) $ 68,040     $ 46,552     $ 32,887     $ 157,538     $ 53,470  
    Incremental cost for manufacturing in U.S.   (16,123 )     (11,396 )     (7,112 )     (38,351 )     (11,603 )
    Net IRA benefit (Non-GAAP) $ 51,917     $ 35,156     $ 25,775     $ 119,187     $ 41,867  
                       
    Net cash provided by operating activities (GAAP) $ 167,292     $ 170,138     $ 35,450     $ 513,693     $ 696,780  
    Purchases of property and equipment   (8,064 )     (8,533 )     (20,075 )     (33,604 )     (110,401 )
    Free cash flow (Non-GAAP) $ 159,228     $ 161,605     $ 15,375     $ 480,089     $ 586,379  
                                           
    (2)  Calculation of non-GAAP diluted net income per share for the year ended December 31, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million from non-GAAP net income.

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

    Financial Summary for the Fourth Quarter Ended December 31, 2024

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

    Financial Summary for the Year Ended December 31, 2024

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

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

    Key Performance Indicators and Recent Business Highlights

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

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

    Financial Outlook

    For the first quarter of 2025, the Company expects:

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

    For full year 2025, the Company expects:

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

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

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

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

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

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

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

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

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

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

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

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

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

    Forward-Looking Statements

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

    About Varonis

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

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

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

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

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

    Varonis Systems, Inc.
    Consolidated Statements of Operations
    (in thousands, except for share and per share data)
     
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024     2023     2024     2023 
      Unaudited   Unaudited    
    Revenues:              
    Term license subscriptions $ 66,781     $ 106,184     $ 254,241     $ 356,490  
    SaaS   72,206       22,980       208,781       44,417  
    Maintenance and services   19,527       24,935       87,928       98,253  
    Total revenues   158,514       154,099       550,950       499,160  
                   
    Cost of revenues   26,055       19,347       93,847       71,751  
                   
    Gross profit   132,459       134,752       457,103       427,409  
                   
    Operating expenses:              
    Research and development   50,546       48,144       196,765       183,838  
    Sales and marketing   76,123       70,569       288,769       277,893  
    General and administrative   23,342       21,283       89,220       82,901  
    Total operating expenses   150,011       139,996       574,754       544,632  
                   
    Operating loss   (17,552 )     (5,244 )     (117,651 )     (117,223 )
    Financial income, net   7,605       5,433       34,644       30,305  
                   
    Income (loss) before income taxes   (9,947 )     189       (83,007 )     (86,918 )
    Income taxes   (3,047 )     (1,087 )     (12,758 )     (13,998 )
                   
    Net loss $ (12,994 )   $ (898 )   $ (95,765 )   $ (100,916 )
                   
    Net loss per share of common stock, basic and diluted $ (0.12 )   $ (0.01 )   $ (0.86 )   $ (0.92 )
                   
    Weighted average number of shares used in computing net loss per share of common stock, basic and diluted   112,488,376       109,007,859       111,660,541       109,141,894  
    Stock-based compensation expense for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 1,175   $ 1,275   $ 5,192   $ 7,221
    Research and development   10,709     11,199     41,766     48,679
    Sales and marketing   10,509     10,186     41,494     48,047
    General and administrative   10,176     8,983     38,230     35,872
      $ 32,569   $ 31,643   $ 126,682   $ 139,819
    Payroll tax expense related to stock-based compensation for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 6   $ 20   $ 637   $ 405
    Research and development   38     133     604     365
    Sales and marketing   146     152     3,196     1,972
    General and administrative   16     32     1,181     518
      $ 206   $ 337   $ 5,618   $ 3,260
    Amortization of acquired intangibles and acquisition-related expenses for the three and twelve months ended December 31, 2024 and 2023 is included in the Consolidated Statements of Operations as follows (in thousands):
                   
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024    2023    2024    2023
      Unaudited   Unaudited    
    Cost of revenues $ 119   $ 381   $ 1,263   $ 1,525
    Research and development   —     128     —     1,363
    Sales and marketing   —     —     —     —
    General and administrative   —     —     —     —
      $ 119   $ 509   $ 1,263   $ 2,888
    Varonis Systems, Inc.
    Consolidated Balance Sheets
    (in thousands)
     
      December 31, 2024   December 31, 2023
      Unaudited    
    Assets      
    Current assets:      
    Cash and cash equivalents $ 185,585     $ 230,740  
    Marketable securities   343,383       253,175  
    Short-term deposits   39,450       49,800  
    Trade receivables, net   192,832       169,116  
    Prepaid expenses and other short-term assets   116,824       64,326  
    Total current assets   878,074       767,157  
    Long-term assets:      
    Long-term marketable securities   658,896       211,063  
    Operating lease right-of-use assets   45,593       51,838  
    Property and equipment, net   30,795       33,964  
    Intangible assets, net   —       1,263  
    Goodwill   23,135       23,135  
    Other assets   27,782       15,490  
    Total long-term assets   786,201       336,753  
    Total assets $ 1,664,275     $ 1,103,910  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Trade payables $ 4,313     $ 672  
    Accrued expenses and other short-term liabilities   164,930       125,057  
    Convertible senior notes, net   250,529       —  
    Deferred revenues   290,113       181,049  
    Total current liabilities   709,885       306,778  
    Long-term liabilities:      
    Convertible senior notes, net   450,243       250,477  
    Operating lease liabilities   42,789       51,313  
    Deferred revenues   2,211       886  
    Other liabilities   3,491       4,808  
    Total long-term liabilities   498,734       307,484  
           
    Stockholders’ equity:      
    Share capital      
    Common stock   113       109  
    Accumulated other comprehensive income (loss)   2,676       (8,649 )
    Additional paid-in capital   1,193,022       1,142,578  
    Accumulated deficit   (740,155 )     (644,390 )
    Total stockholders’ equity   455,656       489,648  
    Total liabilities and stockholders’ equity $ 1,664,275     $ 1,103,910  
    Varonis Systems, Inc.
    Consolidated Statements of Cash Flows
    (in thousands)
     
      Twelve Months Ended
    December 31,
       2024     2023 
      Unaudited    
    Cash flows from operating activities:      
    Net loss $ (95,765 )   $ (100,916 )
    Adjustments to reconcile net loss to net cash provided by operating activities:      
    Depreciation and amortization   11,126       11,703  
    Stock-based compensation   126,682       139,819  
    Amortization of deferred commissions   54,392       53,072  
    Non-cash operating lease costs   9,526       9,468  
    Amortization of debt issuance costs   2,144       1,514  
    Amortization of premium and accretion of discount on marketable securities, net   (12,690 )     (9,354 )
    Acquired in-process research and development   6,653       —  
           
    Changes in assets and liabilities:      
    Trade receivables   (23,716 )     (33,137 )
    Prepaid expenses and other short-term assets   (35,332 )     (21,459 )
    Deferred commissions   (59,820 )     (53,505 )
    Other long-term assets   347       (577 )
    Trade payables   3,641       (2,290 )
    Accrued expenses and other short-term liabilities   17,317       (5,278 )
    Deferred revenues   110,389       69,882  
    Other long-term liabilities   306       474  
    Net cash provided by operating activities   115,200       59,416  
           
    Cash flows from investing activities:      
    Proceeds from maturities of marketable securities   308,840       301,350  
    Proceeds from sales of marketable securities   111,552       —  
    Investment in marketable securities   (949,841 )     (517,948 )
    Proceeds from short-term and long-term deposits   34,795       214,444  
    Investment in short-term and long-term deposits   (24,254 )     (135,823 )
    Purchase of in-process research and development   (6,653 )     —  
    Purchases of property and equipment   (6,694 )     (5,099 )
    Net cash used in investing activities   (532,255 )     (143,076 )
           
    Cash flows from financing activities:      
    Proceeds from issuance of convertible senior notes, net of issuance costs   449,635       —  
    Purchases of capped calls   (55,522 )     —  
    Proceeds from employee stock plans   16,082       11,537  
    Taxes paid related to net share settlement of equity awards   (38,295 )     (21,415 )
    Repurchase of common stock   —       (43,522 )
    Net cash provided by (used in) financing activities   371,900       (53,400 )
    Decrease in cash and cash equivalents   (45,155 )     (137,060 )
    Cash and cash equivalents at beginning of period   230,740       367,800  
    Cash and cash equivalents at end of period $ 185,585     $ 230,740  
    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in thousands, except share and per share data)
     
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
       2024     2023     2024     2023 
      Unaudited   Unaudited
    Reconciliation to non-GAAP operating income:              
                   
    GAAP operating loss $ (17,552 )   $ (5,244 )   $ (117,651 )   $ (117,223 )
                   
    Add back:              
    Stock-based compensation expense   32,569       31,643       126,682       139,819  
    Payroll tax expenses related to stock-based compensation   206       337       5,618       3,260  
    Amortization of acquired intangible assets and acquisition-related expenses   119       509       1,263       2,888  
    Non-GAAP operating income $ 15,342     $ 27,245     $ 15,912     $ 28,744  
                   
    Reconciliation to non-GAAP net income:              
                   
    GAAP net loss $ (12,994 )   $ (898 )   $ (95,765 )   $ (100,916 )
                   
    Add back:              
    Stock-based compensation expense   32,569       31,643       126,682       139,819  
    Payroll tax expenses related to stock-based compensation   206       337       5,618       3,260  
    Amortization of acquired intangible assets and acquisition-related expenses   119       509       1,263       2,888  
    Foreign exchange rate differences, net   3,129       2,290       827       (916 )
    Amortization of debt issuance costs   880       381       2,144       1,514  
    Non-GAAP net income $ 23,909     $ 34,262     $ 40,769     $ 45,649  
                   
    GAAP weighted average number of shares used in computing net loss per share of common stock – basic and diluted   112,488,376       109,007,859       111,660,541       109,141,894  
    Non-GAAP weighted average number of shares used in computing net income per share of common stock – basic   112,488,376       109,007,859       111,660,541       109,141,894  
    Non-GAAP weighted average number of shares used in computing net income per share of common stock – diluted   135,097,388       126,061,869       130,278,825       126,585,777  
                   
    GAAP net loss per share of common stock – basic and diluted $ (0.12 )   $ (0.01 )   $ (0.86 )   $ (0.92 )
    Non-GAAP net income per share of common stock – basic $ 0.21     $ 0.31     $ 0.37     $ 0.42  
    Non-GAAP net income per share of common stock – diluted $ 0.18     $ 0.27     $ 0.31     $ 0.36  

            

    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in millions)
           
      Twelve Months Ended
    December 31,
       2024     2023 
      Unaudited
    Reconciliation to non-GAAP free cash flow:      
    Net cash provided by operating activities $ 115.2     $ 59.4  
    Purchases of property and equipment   (6.7 )     (5.1 )
    Free cash flow $ 108.5     $ 54.3  
    Varonis Systems, Inc.
    Reconciliation of GAAP Measures to non-GAAP
    (in millions)
           
      Twelve Months Ended
    December 31, 2025
      Low   High
    Reconciliation to non-GAAP free cash flow:      
    Net cash provided by operating activities $ 132.0     $ 139.0  
    Purchases of property and equipment   (12.0 )     (14.0 )
    Free cash flow $ 120.0     $ 125.0  

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

    Business Outlook

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

    Conference Call

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

    About Key Tronic

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

    Forward-Looking Statements

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

    Non-GAAP Financial Measures

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

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

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

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

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

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

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

      Three Months Ended   Six Months Ended
      December 28, 2024   December 30, 2023   December 28, 2024   December 30, 2023
    GAAP net income (loss) $ (4,914 )   $ 1,084     $ (3,790 )   $ 1,419  
    Gain on insurance proceeds (net of losses)   —       —       —       (431 )
    Stock-based compensation expense   16       53       83       112  
    Write-off of unamortized loan fees   1,012       —       1,012       —  
    Income tax effect of non-GAAP adjustments (1)   (206 )     (11 )     (219 )     64  
    Adjusted net income (loss): $ (4,092 )   $ 1,126     $ (2,914 )   $ 1,164  
                   
    Adjusted net income (loss) per share — non-GAAP Diluted $ (0.38 )   $ 0.10     $ (0.27 )   $ 0.11  
    Weighted average shares outstanding — Diluted   10,762       10,889       10,762       10,889  
                   
    (1) Income tax effects are calculated using an effective tax rate of 20%, which approximates the statutory GAAP tax rate for the presented periods.        

    The MIL Network –

  • MIL-OSI: Key Tronic Corporation Plans to Expand Operations in Arkansas and Vietnam

    Source: GlobeNewswire (MIL-OSI)

    SPOKANE VALLEY, Wash., Feb. 04, 2025 (GLOBE NEWSWIRE) — Key Tronic Corporation (Nasdaq KTCC), a world class provider of manufacturing and design engineering services, today announced that it plans to significantly increase production capacity in Arkansas and Vietnam in order to continue to benefit from the growing customer demand for rebalancing their contract manufacturing. This expansion is also expected to help mitigate the adverse impact and uncertainties surrounding the recently announced tariffs on goods manufactured in China and Mexico.

    In Arkansas, the Company has signed a new lease to significantly increase the size of its current manufacturing footprint by June 2025. In Vietnam, Key Tronic has ample space in its current facility and plans to double its manufacturing capacity by September 2025 with a significant investment in capital equipment.

    “Our customers are very excited about our plans to increase our production capacity capabilities in the US and in Vietnam,” said Brett Larsen, President and CEO of Key Tronic Corporation. “These initiatives reflect the longstanding trend to nearshore production away from China, and may also help address the potential adverse impact of tariff increases. Our US-based production provides customers with outstanding flexibility, engineering support, and ease of communications, and our Vietnam-based production offers the high-quality, low-cost choice that was associated with China in the past. In the coming months, we’ll have more to say about these expansions.”

    About Key Tronic

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

    Forward-Looking Statements

    Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Key Tronic’s opportunities and its partnership, the potential success of Key Tronic and the customer, and related revenues. Forward-looking statements include all passages containing verbs such as aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets or nouns corresponding to such verbs.  Forward-looking statements also include other passages that are primarily relevant to expected future events or revenue or that can only be fully evaluated by events that will occur in the future.  There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the success and timing of our expansion plans; the success and timing of ramping; availability and timing and receipt of critical parts or components; demand from customers and sales channels; the future of the global economic environment and its impact on our customers and suppliers; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.

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

    The MIL Network –

  • MIL-OSI Submissions: Asia-Pacific region to chart bold path for migration governance

    Source: United Nations – ESCAP

    The second Regional Review of the Global Compact for Safe, Orderly and Regular Migration (GCM) in Asia and the Pacific opened today with a call for migration policies that prioritize the needs and rights of migrants while ensuring broad collaboration across governments, communities and key stakeholders.  

    The region, home to over 40 per cent of the world’s international migrants, is witnessing significant shifts driven by demographic changes, rapid digital transformation and the increasing effects of climate change and other crises. Intraregional migration remains predominant, with 70 per cent of migrants moving within the region.

    Much of international migration is propelled by the search for decent work, with women migrants playing a critical yet often undervalued role in sectors such as care and domestic work. Children also make up a significant proportion of migrants in the region, with unique needs for services and protection due to their heightened vulnerability.  

    “Migration, if managed in a well-informed, planned and voluntary manner, with full respect and protection of human rights, can bring benefits to all. Migrants should have their potential fully harnessed to play key roles in enhancing sustainable development in countries of origin and destination,” said Armida Salsiah Alisjahbana, United Nations Under-Secretary-General and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP) in her opening remarks.

    “With over 40 per cent of the world’s migrants calling Asia and the Pacific home, the region has a unique opportunity to lead by example—expanding regular pathways, protecting lives and ensuring migration benefits all,” said Catalina Devandas, representing IOM Director General Amy Pope in her capacity as Coordinator of the UN Network on Migration.
     
    Expected outcomes and commitments

    Over the next three days, participants will share progress, challenges and good practices in implementing the 23 objectives of the GCM. Discussions will focus on the critical role of migrants in the region’s resilience and sustainable development, particularly in light of lessons learned during the COVID-19 pandemic.

    “In host countries, migrants bring with them not only the needed manpower, but also skills, expertise and social interactions, that can help accelerate economic and social development. Meanwhile, home countries can enjoy the economic boost from remittances from migrant workers and diaspora,” shared Eksiri Pintaruchi, Permanent Secretary for Foreign Affairs of Thailand.

    Speaking on behalf of the Stakeholder Action Group, migrant domestic worker and member of the International Domestic Workers Federation Nasrikah highlighted the importance of having segregated data on migration to inform policymakers on the key needs and situations of migrants and their families and take action based on analysis and true stories of unsafe migration.

    Recognizing the importance of addressing the interconnected challenges shaping migration dynamics such as rapid digital transformation, climate change, demographic shifts and economic disparities, several key commitments are expected to emerge from the review including:

    Protecting migrants’ rights and saving lives: Governments are expected to renew their commitments to policies that uphold migrants’ rights, promote gender equality, tackle discrimination and ensure access to health care, education, decent work and social protection for all migrants, including their children.
    Using technology to improve migration systems: Key priorities include reducing remittance transfer costs, promoting digital and financial inclusion, closing gender gaps in financial access, simplifying migration processes and increasing transparency
    Preparing for crises and climate impacts: Governments are expected to recognize the need for migration policies that help migrants and communities better withstand climate change, economic shocks and health emergencies, using reliable, timely and disaggregated data.
    Strengthening regional cooperation: The meeting will highlight cross-border collaboration, stronger partnerships and meaningful engagement with migrants, civil society, women’s rights organizations and the private sector to improve migration governance.

    The outcomes of this meeting will contribute to global discussions at the 2026 International Migration Review Forum. Governments are also expected to reaffirm their commitment to aligning migration governance with the Sustainable Development Goals, recognizing that protecting all migrants and enabling their full contributions to society are essential to achieving the 2030 Agenda for Sustainable Development.

    Note to Editor:
    The second Regional Review benefited from insights shared in the Asia-Pacific Migration Report 2024, developed by ESCAP and the Regional United Nations Network on Migration for Asia and the Pacific, as well as extensive stakeholder consultations held in its lead-up.
     
    For more information: https://www.unescap.org/events/2025/second-asia-pacific-regional-review-implementation-global-compact-safe-orderly-and

    MIL OSI – Submitted News –

  • MIL-OSI USA: Crapo: Doug Collins Knows Firsthand the Issues Veterans Face

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–U.S. Senator Mike Crapo (R-Idaho) issued the following statement after the Senate confirmed, by a vote of 77-23, Doug Collins to be Secretary of the U.S. Department of Veterans Affairs (VA):

    “Idaho is home to veterans of many different backgrounds, from every branch of service and from various wars over the past few decades, including post-9/11 veterans.  It is imperative the next Secretary of the VA will fight tirelessly to appropriately honor their service and administer the benefits owed to them by their sacrifices.  His military service coupled with his political and professional work give him the tools necessary to solve complex problems, cut through red tape and get things done for those who have served our country.  Doug Collins knows firsthand the issues veterans face.  He will bring empathy and kindness to meeting their needs.  He has also committed to making the VA more user-friendly so veterans do not need to find outside help to navigate the Department’s bureaucracy.  I congratulate him on his confirmation.”

    MIL OSI USA News –

  • MIL-OSI Canada: Budget 2025: Coming soon

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

  • MIL-OSI USA: February 4th, 2025 Heinrich, Daines Resolution Designating National Tribal Colleges and Universities Week Passes U.S. Senate

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    WASHINGTON – U.S. Senators Martin Heinrich (D-N.M.) and Steve Daines (R-Mont.) announced that their bipartisan legislation designating this week, beginning February 3, 2025, as “National Tribal Colleges and Universities Week” passed the U.S. Senate. This week is dedicated to the recognition and support for the achievements of students pursuing postsecondary educational opportunities in Tribal Colleges and Universities.

    “I’m pleased the Senate passed my resolution designating this week as National Tribal Colleges and Universities Week. This resolution recognizes the vital role of Tribal colleges and universities in creating opportunities for the next generation of Tribal leaders, upholding Tribal educational sovereignty, and preparing Native students for careers they can build their families around in their home communities,” said Heinrich.

    “Our tribal colleges and universities play a vital role in Montana’s communities and provide incredible opportunities for higher education on or near Montana’s reservations,” said Daines. “I’m proud to introduce legislation so the hard work and great achievements of our Montana students, teachers and educational institutions can be recognized nationally.”

    Read the full text of the resolution here.

    The resolution was led by Heinrich and Daines. U.S. Senators John Barrasso (R-Wyo.), Michael Bennett (D-Colo.), Kevin Cramer (R-N.D.), Dick Durbin (D-Ill.), Deb Fischer (Neb.), Ruben Gallego (D-Ariz.), Mazie Hirono (D-Hawaii), John Hoeven (R-N.D.), Ron Johnson (R-Wis.), Mark Kelly (D-Ariz.), Amy Klobuchar (D-Minn.), James Lankford (R-Okla.), Jerry Moran (R-Kan.), Mike Rounds (R-S.D.), Jacky Rosen (D-Nev.), Bernie Sanders (D-Vt.), Brian Schatz (D-Hawaii), Tim Sheehy (R-Mont.), Elizabeth Warren (D-Mass.) and Tammy Baldwin (D-Wisc.) cosponsored the  resolution.

    MIL OSI USA News –

  • MIL-OSI Security: From Milton to the Navy: Hospital Corpsman Xihang Cong’s Journey of Service and Success

    Source: United States Navy (Medical)

    U.S. Navy Story by Cmdr. Lauren McKinley

    Gulfport, Miss. – Hospital Corpsman Second Class Xihang Cong, a naturalized American citizen, continues to work every day in the Navy Reserve to achieve the phenomenal success she could only dream about as a teenager who settled in Milton, Florida with her mother and step-father.

    Cong is a 2021 graduate of Pace High School, who enlisted in the United States Navy under a Training and Administration of the Reserves (TAR) contract, providing full-time support to the Navy Reserve. She currently serves as the Assistant Leading Petty Officer of Navy Reserve Center (NRC) Gulfport’s medical department. She is responsible for the medical and dental readiness of the 300 Selected Reserve Sailors assigned to 15 reserve units who drill in Gulfport.

    Originally born and raised in Jilin, China by her grandparents, she credits her success to the value of a strong work ethic instilled at a young age by her native culture, which was uniquely blended with an American sense of independence, self-sufficiency, and persistence when she immigrated as a young woman.

    Reflecting on her adolescence, Cong discussed her challenges in assimilating, “My mom and my stepdad had no idea how to counsel me on how to fit into my new school or what steps to take to pursue a new career. I had to rely on myself, but I listened to and observed others and learned a lot from my peers and teachers at school.”

    Petty Officer Cong settled in Milton, Florida because her stepfather, a veteran of the British Royal Navy, works as a defense contractor servicing the maintenance requirements of the aviation squadrons in Naval Air Station Whiting Field. She was inspired to participate in the Pace High School Junior Reserve Officer Training Corps (JROTC) and her JROTC unit competed in and won multiple drill competitions in the Gulf Coast. Discipline was instilled in her from a young age, later inspiring her to enlist as a hospital corpsman with aspirations to earn her Bachelor of Science in Nursing. She currently attends Mississippi Gulf Coast Community College where she is earning her associates degree.

    Her educational background serves her well in the fast-paced and chaotic environment of a typical drill weekend at NRC Gulfport. Gulfport is the homeport of the Atlantic Seabees, including the Seventh Naval Construction Regiment and Naval Construction Battalions Fourteen and Two Seven. Reserve Seabees comprise approximately one third of the Navy Reserve Center’s constituency, and Cong leads her department in ensuring all Sailors in these units maintain individual medical readiness as a prerequisite for mobilization readiness to remote locations world-wide.

    Since her accession in 2022, she has planned four Reserve Health Readiness Program events and Navy medical provider support for over 30 drill weekends to ensure her Sailors have access to medical care at all times. She and her team have successfully screened over 50 individual augmentees for mobilization and her department has earned phenomenal marks in two consecutive mass activation exercises.

    Vice Admiral Nancy Lacore, chief of the Navy Reserve and commander, Navy Reserve Force, highlights the importance of posturing the Reserve Force for warfighting, “Our Sailors, operational units, and readiness units of action are our weapons system. We are prepared for the mission, ready to fight and win decisively on Day One. Our Training and Administration of the Reserves (TAR) community will ensure our Navy Reserve Activities (NRA)…are able to mobilize the entire Force within 30 days. NRA leaders will maintain 80% warfighting readiness across the Force.”

    To that end, Cong’s diligent efforts and leadership have led Navy Reserve Center Gulfport to achieve an astounding 96% Total Force medical readiness for consecutive years. Cong learned very quickly in this fast-paced environment and discussed her proudest accomplishment as having achieved the rank of petty officer second class in less than three years of service. As a newly minted second class petty officer, Cong believes in the power of mentorship and has now embraced her role in training both active and reserve component junior Sailors.

    Cong still remembers her hometown after her meteoric rise, attributing her success to the welcoming atmosphere at her high school and JROTC unit. Specifically, she wants to recognize her English as a Second Language (ESL) teacher, Mrs. Colvin Kirti, for counseling her on how to achieve her goals by breaking them down into smaller and achievable action steps.

    Having served her career dedicated to the readiness of her reserve Sailors, Petty Officer Cong discussed her thoughts on the Navy Reserve’s Strategic Advantage, “The reserve Sailors are only here for two days of the month. We [the staff] have to track and be ready to administer exams and vaccinations. It is our responsibility to help them out because they have full time (civilian) jobs.”

    Cong’s story is the embodiment of the American dream. She is an excellent example of a citizen Sailor who has a passion for serving her new country while balancing the demands of off-duty education to further accelerate her career. Now seeing her new proteges excelling and emulating her work ethic, she is proud to give back to the country and the Navy who has given so much to her. She concluded, “It is an honor.”

    MIL Security OSI –

  • MIL-OSI Global: Trump’s tariff gambit: As allies prepare to strike back, a costly trade war looms

    Source: The Conversation – USA – By Bedassa Tadesse, Professor of Economics, University of Minnesota Duluth

    On Saturday, Feb. 1, 2025, U.S. President Donald Trump announced a plan to slap steep tariffs on imports from key American trading partners – 25% on goods from Mexico and Canada and 10% on imports from China. His stated reason? To curb illegal immigration and drug trafficking.

    Both Mexico and Canada managed to buy some time. After urgent phone calls with Trump on Feb. 3, their leaders each secured a one-month reprieve. But Mexico’s Claudia Sheinbaum and Canada’s Justin Trudeau also made it clear to their U.S. counterpart: If these tariffs go through, they’ll hit back with their own trade restrictions. The world is watching the opening moves of what could become another costly trade war.

    As a professor of economics, I can explain why this poses significant risks to the U.S. economy and American consumers. Economic theory suggests that tariffs distort market efficiency, raising production costs while limiting consumer choice and increasing prices.

    Who really pays for tariffs?

    While politicians often frame tariffs as a way to punish other countries, they actually hit domestic consumers and businesses hardest. Whether they’re facing higher grocery bills or disruptions in manufacturing, Americans will feel the strain.

    When tariffs are imposed, companies must either absorb the additional costs – cutting into profits and potentially threatening jobs – or pass these costs to consumers through higher prices. Small businesses operating on thin profit margins are particularly vulnerable, as many lack the resources to quickly switch suppliers.

    Tariffs trigger costly retaliation

    Worse yet, such measures commonly set off a cycle of retaliation. During past trade disputes involving the U.S., affected nations have responded with counter-tariffs on American products, including textiles, steel and agricultural goods. Such retaliatory efforts have led to sharp declines in U.S. exports.

    During the first Trump administration, for example, China imposed retaliatory tariffs on U.S. agricultural exports. As a result, the U.S. farmers lost billions of dollars, and the U.S. spent billions in government aid to offset those losses. China has already issued new tariffs on imports of U.S. goods and export controls on some of its exports to the U.S. to retaliate for Trump’s current move.

    History also shows that trade wars are self-defeating. The Smoot-Hawley Tariff Act of 1930, which imposed tariffs on over 20,000 imported goods, prompted swift retaliation from trading partners and contributed to deepening the Great Depression.

    Modern trade wars have other consequences

    Modern trade wars hit closer to home than most Americans realize. The recent tariff threat against Colombia reveals why. In 2023, Colombian farmers supplied US$1.14 billion worth of fresh-cut flowers to U.S. florists. In a near-crisis that lasted a weekend, Trump threatened to slap steep tariffs on the South American nation, right when flower shops across America were stocking up for one of their busiest seasons: Valentine’s Day.

    The same tariffs would have hit Colombian coffee too, affecting everything from neighborhood cafes to grocery store prices. This shows how modern trade disputes can instantly disrupt the everyday purchases Americans make.

    Other key trading partners, including the European Union, have also come into the crosshairs. On Jan. 30, 2025, the president issued a stark warning to Brazil, Russia, India, China and South Africa – the so-called BRICS nations – threatening 100% tariffs if they continued efforts to reduce reliance on the U.S. dollar as their reserve currency.

    These threats can do more than alienate strategic partners; they risk accelerating dedollarization – pushing nations to develop alternative financial systems that weaken U.S. influence in global trade.

    A more effective approach

    Beyond causing immediate economic pain, constant tariff threats risk damaging America’s credibility as a reliable trading partner. The U.S. helped establish the rules-based international trading system, but regular tariff threats erode global trust and push trading partners to seek alternatives to the U.S. market.

    The reality is clear: No country in the modern era has successfully used tariffs to grow its economy or improve the well-being of its people. The countries that are most dependent on tariff revenues for their national budgets are among the world’s poorest and least developed economies.

    I believe the path to maintaining America’s economic leadership lies in embracing a smarter, more strategic trade policy – one that builds alliances instead of breaking them. A strategy that prioritizes negotiation, fosters innovation and enhances competitiveness – and that doesn’t rely on protectionist tactics more often used by developing nations – would strengthen cooperation and stability, ensuring long-term economic prosperity.

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

    – ref. Trump’s tariff gambit: As allies prepare to strike back, a costly trade war looms – https://theconversation.com/trumps-tariff-gambit-as-allies-prepare-to-strike-back-a-costly-trade-war-looms-248980

    MIL OSI – Global Reports –

  • MIL-OSI Global: Trump’s opening tariff salvo will hurt US consumers − following through on Canada, Mexico threats will increase the price pain

    Source: The Conversation – USA – By Jason Reed, Associate Teaching Professor of Finance, University of Notre Dame

    If U.S. voters reelected Donald Trump hoping for relief from higher prices, his recent threats to impose tariffs on America’s three largest trade partners might make them think again.

    On Saturday, Feb. 1, Trump announced 25% tariffs on Canada and Mexico and 10% tariffs on China, which he said would take effect on Tuesday, Feb. 4. While markets braced for the news to some degree, they still saw a steep premarket sell-off on Monday, Feb. 3, followed by morning volatility.

    While Canada and Mexico negotiated monthlong reprieves on Monday, the new tariffs on China went into effect as expected Tuesday, Feb. 4. And while the ultimate shape of Trump’s tariff policy remains to be seen, the president warned that American consumers could feel “some pain” as a result.

    Given my training as an economist and finance professor, I think Trump could be right on that score. In fact, if the tariffs go into effect, they could spell disaster for the Federal Reserve’s inflation reduction efforts.

    From grocery stores to homes

    U.S. consumers might be surprised to find out that almost every economic sector could be affected by this opening salvo of tariffs, should they go ahead in March. Imports from Mexico and Canada reached close to US$1 trillion in 2024, almost double the amount the U.S. imports from China.

    The U.S. is particularly reliant on Mexico for fresh fruits and vegetables, and on Canada for lumber. So if the tariffs go into effect, Americans who have been waiting for home prices to ease may have to continue waiting, as tariffs on lumber and other building materials could worsen the affordable-housing crunch. And let’s not even talk about avocado prices.

    Meanwhile, the 10% tariffs on Chinese goods will likely boost the price of electronics, and China has already imposed retaliatory measures. Trump has also proposed 25% tariffs on Taiwan and its semiconductor industry, in an attempt to push Taiwanese companies to invest more in U.S. manufacturing. If that tariff were to go into effect, prices for U.S. consumers would be even higher.

    A tax by any other name …

    Tariffs are an import tax. They’re passed through the supply chain in the form of higher prices and are eventually paid by consumers. Traditionally, governments have used tariffs as a fiscal tool to encourage businesses and consumers to move away from foreign-made products and support domestic businesses instead.

    In theory, new tariffs could encourage foreign businesses to invest in the U.S. and make more stuff on American soil. Unfortunately, domestic manufacturing has seen a systemic decline since the 1980s, resulting in lower prices for consumers but severely limiting U.S.-produced products. In the short term, at least, import taxes on Canadian, Mexican and Chinese products would ultimately be paid by U.S. consumers.

    Although this round of tariff threats may seem arbitrary to some, the Trump administration says it considers tariffs deeply intertwined with national security concerns. Stephen Miran, Trump’s pick to chair the president’s Council of Economic Advisers, has laid out a path for Trump’s tariff plan, which he says is aimed at putting American industry on fairer ground against the rest of the world.

    In the long term, it’s unclear whether Trump’s threatened trade war will bring domestic manufacturing back to the U.S. and start a new industrial renaissance. In the meantime, American consumers will likely be stuck holding the bag.

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

    – ref. Trump’s opening tariff salvo will hurt US consumers − following through on Canada, Mexico threats will increase the price pain – https://theconversation.com/trumps-opening-tariff-salvo-will-hurt-us-consumers-following-through-on-canada-mexico-threats-will-increase-the-price-pain-248991

    MIL OSI – Global Reports –