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Category: Machine Learning

  • MIL-OSI USA: Chairman Capito Highlights Consensus on Need for NEPA and Permitting Reform Legislation

    US Senate News:

    Source: United States Senator for West Virginia Shelley Moore Capito
    [embedded content]
    To watch Chairman Capito’s questions, click here or the image above.
    WASHINGTON, D.C. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.), Chairman of the Senate Environment and Public Works (EPW) Committee, led a hearing on improving federal environmental review and permitting processes.
    During the hearing, Chairman Capito questioned a panel of leaders from different industries and organizations about challenges they’ve faced while trying to implement projects important to American economic growth. In particular, Chairman Capito focused on the need to craft legislation that creates efficient and reliable timelines for National Environmental Policy Act (NEPA) and permitting processes and addresses endless legal challenges for projects. 
    HIGHLIGHTS:
    AGREEMENT ON CHANGES TO ENVIRONMENTAL REVIEW:
    Chairman Capito:
    “Both Republican and Democrat administrations over the last couple decades have recognized the need to address the environmental review process, and those administration have taken efforts, through changes to regulations and guidance, to do so. Despite these efforts, federal environmental review and permitting challenges persist…I would like to ask each of you, do you agree that Congress must come together to develop a bipartisan bill to tackle these challenging issues?”
    Jeremy Harrell, CEO, ClearPath:
    “Yes, Senator.”
    Leah Pilconis, General Counsel, The Associated General Contractors of America:
    “Yes.”
    Carl Harris, Chairman of the Board, National Association of Home Builders:
    “Yes, Senator.”
    Brent Booker, General President, Laborers’ International Union of North America:
    “Yes.”
    Nicole Pavia, Director, Clean Energy Infrastructure Deployment, Clean Air Task Force:
    “Yes.”
    LENGTHY FEDERAL PROCESSES:
    Chairman Capito: 
    “Under current law and regulation, projects can take years or even decades to progress from concept to completing the NEPA process. What are the real world impacts of this lengthy timeline for projects on consumers of goods and services that your members produce?
    Leah Pilconis:
    “For the construction industry, delays cause uncertainty, and they also cause workforce instability. Our contractors can’t commit to hiring workers. They can’t order materials when there are delays on breaking ground for projects, often because they’re tied up for years with lawsuits, delays also drive up costs.”
    Carl Harris:
    “The cost of permitting adds to the cost of housing, and every time, as I said in my testimony, every time you raise the cost of a house $1,000, you lock out 106,000 family units. That’s substantial.”
    ADDRESSING JUDICIAL REVIEW: “I want to ask about judicial review, it came up in almost everybody’s testimony. Many projects are targeted with litigation all throughout the process. The resulting legal costs and projects delays can be enough to stop a project, which happened with our Atlantic Coast Pipeline in West Virginia.”
    BUILDING CONSENSUS: “I think we have a lot of commonality here, a lot of good ideas, and a lot of thought that I think are going along the same lines. I think we should think big, and then come down from big to where we can meet the sweet spot. Because, like Senator Curtis said, we’ve been talking about this for years, we haven’t quite gotten there. So, I’m committed.”
    HEARING RECORD REMAINS OPEN: “The hearing record will remain open, as I said earlier, until March 21 and anybody – I would hope that you would submit suggestions that you might have heard today, or other suggestions. The public will be allowed to submit comments and materials for the hearing record by sending these documents to permitting@epw.senate.gov. This email address is also accessible on the Committee’s website.”
    Click HERE to watch Chairman Capito’s opening statement.
    Click HERE to watch Chairman Capito’s questions.

    MIL OSI USA News –

  • MIL-OSI USA: Photos/Video: Kaine, Heinrich, and Environmental Leaders Hold Press Conference on Trump’s War on Affordable, American-Made Energy

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    FULL VIDEO OF THE PRESS CONFERENCE IS AVAILABLE HERE.

    PHOTOS & VIDEO OF KAINE ARE AVAILABLE HERE.

    WASHINGTON, D.C. – Today, U.S. Senators Tim Kaine (D-VA) and Martin Heinrich (D-NM) and environmental leaders held a press conference calling for the end of President Trump’s war on affordable, American-made energy, which will raise energy costs for Americans and kill high-quality jobs. The senators were joined by Natural Resources Defense Council’s Senior Vice President of Climate Jackie Wong, Sierra Club’s Executive Director Ben Jealous, and League of Conservation Voters’ Senior Vice President of Government Affairs Tiernan Sittenfeld.

    In the hours following his inauguration on January 20, 2025, President Trump signed a slew of executive orders, including the national energy emergency order, to withdraw support for renewable energy—despite its benefits to America’s economy and environment—and grant his administration new powers to promote fossil fuels at the cost of bedrock environmental laws. Kaine and Heinrich introduced legislation to terminate the national energy emergency President Trump declared. The legislation is privileged, meaning that the Senate will be required to vote on it. The vote is expected next week.

    “We are producing more energy now than at any other point in our history, and the U.S. is the envy of the world when it comes to energy innovation and production. The passage of the Bipartisan Infrastructure Law and Inflation Reduction Act have accelerated clean energy projects and created jobs, and we are on an amazing trajectory,” said Senator Kaine. “Trump’s sham emergency threatens to screw all of that up. Why? Because he’d rather benefit Big Oil and suspend environmental protections than lower costs and create jobs for the American people. I hope my colleagues will join me in voting to terminate President Trump’s emergency.”

    “America is producing more energy than ever before including both conventional and renewable sources. This is happening because of the year-over-year certainty Democrats created with tax structures and permitting that has allowed us to make solar, wind, and energy storage cheaper, faster, and less capital intensive to add to the electric grid. We made it possible to build big things in American once again,” said Senator Heinrich, Ranking Member of the Senate Energy and Natural Resources Committee. “But now, Trump’s fake emergency declaration is causing enormous uncertainty. If you’re thinking about opening a new factory, you don’t know what your tax structure will be in the next 12 months. If you’re trying to site and build a new transmission line, the federal agencies you work with just had a ton of their expert staff sacked, making it more difficult to get a permit. This is going to kill skilled trades jobs and drive up the cost of your electricity bills by as much at $480 a year by 2030. Trump’s war on affordable, American-made energy is killing jobs and raising costs on working families.”

    “Trump falsely declared an energy emergency as a pretext to assert authority he lacks and to justify a raft of actions meant to lock us into decades more dependence on the fossil fuels that are driving the climate crisis. There is no energy emergency. There is a climate emergency. Trump’s actions will make it worse,” said Jackie Wong, Senior Vice President for Climate and Energy, Natural Resources Defense Council.

    “In the last four years, if you’re under 52, you’ve seen something happen for the first time in your adult life, which is America opening big new factories from coast to coast to give birth to big new industries,” said Ben Jealous, Executive Director of the Sierra Club. “Trump threatened the jobs of 77,000 workers in the wind industry on day one, sent shockwaves through their families and communities, and threatened to derail the United States from seizing the greatest economic opportunity on Planet Earth right now. Donald Trump’s objective here is to cut taxes and allow fossil fuel industries to continue to destroy beautiful places across this country in the interest of greed when we’ve got a better alternative. It’s time for our country’s people to rise up and demand the President of the United States put their interests first.”

    “We are NOT in an energy emergency. In fact, Trump inherited a thriving clean energy economy with more than 400,000 new jobs and more cheaper and cleaner energy than ever before. Yet Trump and Musk are desperate to impound, freeze, and repeal the very clean energy investments that lower energy bills and create jobs – the majority of which are in districts currently represented by Republicans – so they can pay for tax cuts for their billionaire buddies. Trump and Musk are firing civil servants who help keep our electricity grid safe and secure and gutting clean energy industries that employ thousands of other workers. And Trump and Musk are threatening our air and water and pushing to open up our most precious public lands for permanent destruction so Trump can make good on his promise to Big Oil CEOs to drill, drill, drill,” said Tiernan Sittenfeld, LCV SVP for Government Affairs.

    MIL OSI USA News –

  • MIL-OSI USA: Tuberville, Budd Call for Inquiry Into Chinese AI Application on Pentagon Devices

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville

    DNI’s 2024 Annual Threat Assessment rates China as “most active and persistent threat” to U.S. government

    WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) joined U.S. Senator Ted Budd (R-NC) in requesting information from the Pentagon about how many of its employees have used their government devices to access DeepSeek, a Chinese AI application. In a letter to Acting Chief Information Officer at the Department of Defense (DOD), Leslie A. Beavers, the senators also pressed for information surrounding potential cyber threats from the use of DeepSeek, and what practices are being implemented to prevent future cyber security risks.

    “We write to express our concern that Department of Defense (DOD) employees accessed the Chinese artificial intelligence application DeepSeek on their work devices and, as a result, Chinese servers,” wrote the senators.

    “It is also our understanding, based on the DoD’s Use of Mobile Applications 2023 report, that misuse of mobile applications on DoD personnel devices may not be simply a series of isolated incidents. While our immediate concern is to understand the impact of DoD employees’ access to DeepSeek on national security, we are also interested in understanding the DoD’s policy regarding mobile device applications to the end of ensuring we are diminishing cybersecurity risks associated with certain platforms,” they continued.

    Joining U.S. Senators Tuberville and Budd in sending the letter are U.S. Senators Eric Schmitt (R-MO) and Mark Kelly (D-AZ).

    Read full text of the letter below or here.

    “Dear Ms. Beavers,

    We write to express our concern that Department of Defense (DOD) employees accessed the Chinese artificial intelligence application DeepSeek on their work devices and, as a result, Chinese servers.

    We understand that the National Security Council (NSC) is currently reviewing the national security implications of DeepSeek and expect this will be an ongoing conversation between Congress, the NSC, and relevant agencies. However, in the immediate term, we request that the Department provide information regarding potential impacts to the Defense Information Systems Network (DISN) and the Department of Defense Information Network (DODIN) of the recent incident.

    The office of the Director of National Intelligence’s 2024 Annual Threat Assessment states that “China remains the most active and persistent cyber threat to the U.S. Government, private-sector and critical infrastructure networks”. This is evidenced by the recent Salt Typhoon Hack, a breach of at least eight U.S. telecommunications providers, among many other reports of cyberattacks originating from China.

    It is also our understanding, based on the DoD’s Use of Mobile Applications 2023 report, that misuse of mobile applications on DoD personnel devices may not be simply a series of isolated incidents. While our immediate concern is to understand the impact of DoD employees’ access to DeepSeek on national security, we are also interested in understanding the DoD’s policy regarding mobile device applications to the end of ensuring we are diminishing cybersecurity risks associated with certain platforms.

    Therefore, we request answers to the following questions by no later than March 4, 2025.

    • How many Department employees connected their work computers and/or mobile devices to Chinese servers via the DeepSeek Application?
    • Has the DeepSeek app now been deleted from all DoD devices? If not, what steps will you take to ensure the DeepSeek app is removed from all DoD devices?
    • What steps have been made to limit access on DoD devices to only those applications with a justified and approved need?
    • What is the Defense Information Systems Agency’s (DISA’s) initial assessment about whether Chinese servers were able to access and exfiltrate sensitive information due to Department personnel use of DeepSeek?
    • How has the use of the DeepSeek app by Department personnel impacted the operational and cybersecurity risks to the DISN as well as the DODIN?
    • What guidance or training has DISA shared with Department employees regarding accessing Chinese AI app DeepSeek or any other Chinese-affiliated app?
    • We understand that the Navy issued guidance against using open-source AI systems for official work. What guidance (if any) are the other services and/or the Department issuing to employees?
    • What is DISA’s process for assessing which networks, websites and or applications have a connection to the People’s Republic of China and what are DISA’s standard operating procedures when made aware of such a connection?
    • What action (if any) has been taken regarding the DoD employees who connected their work computers and/or mobile devices to Chinese servers via the DeepSeek Application?
    • Have all of the recommendations from Management Advisory: The DoD’s Use of Mobile Applications (Report No. DODIG-2023-041) been implemented? If not, why not?

    Thank you for your consideration and we look forward to hearing from you and working with the Department of Defense to keep our networks safe from persistent cyber threats.

    Sincerely,”

    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI USA: King Scorns “Thoughtful” Cuts at VA, Impacting Veterans’ Benefits

    US Senate News:

    Source: United States Senator for Maine Angus King

    WASHINGTON, D.C.— Today, U.S. Senator Angus King (I-ME) scorned the recent firing of one thousands employees at the Department of Veterans Affairs (VA) across throughout the country as having a detrimental impact on veterans and their ability to access their earned benefits. In a hearing of the Senate Veterans’ Affairs Committee (SVAC), King also questioned the Honorable Paul Lawrence Ph.D., nominee to be Deputy Secretary of Veterans Affairs, on his support for these cuts and how he will work within the department to ensure that veterans are not victims of the VA’s quest to “reduce inefficiencies” – and rely solely on new technology – across the federal government.

    “On the layoffs, here is the problem. You have testified, and the press release has been, that this is done in a thoughtful way with reviews. I am a great advocate of Ronald Reagan’s admonition ‘trust but verify.’ I would like to see some data that verifies that that took place. It is hard for me to believe that 1000 people were laid off in a matter of weeks with the kind of thoughtful process that you are defining,” Senator King said, before posing a question that quoted Project 2025 (italicized). “The next administration should explore how reviews would be accelerated with clearance from OMB to target significant cost savings from revising disability rating awards.’ That is a change of benefits. For future claimants, and listen to this, ‘while preserving them fully or partially for existing claimants.’”

    Senator King continued, “Partially is a pregnant term. That means you are talking about potentially reducing benefits for people who are getting them now…the phrase ‘preserving benefits fully or partially for existing claimants’ is not very reassuring to the veterans of this country.”

    Senator King then questioned the nominee on his support for AI in reviewing veterans claims, noting that AI is a tool, but cannot be used as a medical decision maker when lives are at stake — by again quoting Project 2025 (in italics)

    “One is a suggestion for the VA to increase automation. ‘The best way to provide benefits more faster and more accurately is by using technology to perform most of the work.’ We are already learning in the private sector through insurance companies that giving AI the decision about making these kind of decisions does not work well. Do you think increased use of technology and artificial intelligence in claims processing is a good idea?” King asked.

    Dr. Lawrence responded, “Thank you for the question, Senator. If you noticed it said most of the work. The way the claim comes about is that there is a lot of work where you gather information and it is called development. That’s what takes so long, getting the veterans’ information in front of someone to make a decision. Technology can be used to gather the information faster. So, a government employee and a claims adjudicator can make the decision.”

    King asked again, “You are testifying that you are not talking about AI making the decision but simply automating the collection of data?”

    “It is called development. That is correct. The decision should be made by an individual, a V.A. employee as required by law. But also to bring judgment into things. I think technology is great but it is not the end all be all,” Dr. Lawrence concluded.

    Representing one of the states with the highest rates of military families and veterans per capita, Senator King has been a staunch advocate for America’s servicemembers and veterans. Last year, he led the bipartisan Military Spouse Employment Act — pieces of which passed into law in the FY2024 NDAA — which allows military spouses to have a remote work career with any federal agency and helps them to maintain consistent employment should they move with their spouse. He also introduced the Improving Access to Prenatal Care for Military Families Act to expand military family care to cover critical health care during pregnancies. Most recently, he joined the bipartisan Fairness for Servicemembers and their Families Act to improve financial security for military families by ensuring life insurance packages for servicemembers and veterans adjust for increases in cost of living and inflation.

    MIL OSI USA News –

  • MIL-OSI: iBio to Begin Trading on the Nasdaq Stock Exchange

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Feb. 19, 2025 (GLOBE NEWSWIRE) — iBio, Inc. (NYSEA:IBIO), an AI-driven innovator of precision antibody therapies, today announced that iBio’s common stock has been approved for listing on the Nasdaq Capital Market and iBio will transfer its stock exchange listing to Nasdaq Capital Market from the NYSE American. The Company expects to begin trading as a Nasdaq-listed company on Mar 4, 2025, and will continue to trade under the symbol “IBIO.” The Company’s common stock will continue to trade on the NYSE American until the market close on Mar 3, 2025.

    Martin Brenner, Ph.D., DVM, iBio’s CEO and Chief Scientific Officer, commented, “We are pleased to announce our listing on the Nasdaq Capital Market and to join a community of leading biotech companies. We believe the move to Nasdaq will improve the visibility of our common stock, enhance trading liquidity in our shares, and provide us with greater exposure to institutional investors.”

    About iBio, Inc.

    iBio (NYSEA: IBIO) is a cutting-edge biotech company leveraging AI and advanced computational biology to develop next-generation biopharmaceuticals for cardiometabolic diseases, obesity, cancer and other hard-to-treat diseases. By combining proprietary 3D modeling with innovative drug discovery platforms, iBio is creating a pipeline of breakthrough antibody treatments to address significant unmet medical needs. Our mission is to transform drug discovery, accelerate development timelines, and unlock new possibilities in precision medicine.  For more information, visit www.ibioinc.com or follow us on LinkedIn.

    FORWARD-LOOKING STATEMENTS

    Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding the transfer to Nasdaq, anticipated date of commencement of trading on the Nasdaq and continuation of trading on the NYSE American and the move to Nasdaq improving the visibility of the Company’s common stock, enhancing trading liquidity in the shares, and providing the Company with greater exposure to institutional investors. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to derive the anticipated benefits from the move to Nasdaq, the Company’s ability to execute its growth strategy and advance its pipeline of therapeutic antibody candidates for cardiometabolic diseases and oncology; the Company’s ability to obtain regulatory approvals for commercialization of its product candidates, or to comply with ongoing regulatory requirements; regulatory limitations relating to the Company’s ability to promote or commercialize its product candidates for specific indications; acceptance of the Company’s product candidates in the marketplace and the successful development, marketing or sale of products; and whether the Company will incur unforeseen expenses or liabilities or other market factors; and the other factors discussed in the Company’s filings with the SEC including the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 and the Company’s subsequent filings with the SEC on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and the Company undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

    Corporate Contact:
    iBio, Inc.
    Investor Relations
    ir@ibioinc.com

    Media Contacts:
    Ignacio Guerrero-Ros, Ph.D., or David Schull
    Russo Partners, LLC
    Ignacio.guerrero-ros@russopartnersllc.com
    David.schull@russopartnersllc.com
    (858) 717-2310 or (646) 942-5604

    The MIL Network –

  • MIL-OSI: Applied Materials Accelerates Chip Defect Review with Next-Gen eBeam System

    Source: GlobeNewswire (MIL-OSI)

    • SEMVision™ H20 enables better and faster analysis of nanoscale defects in leading-edge chips
    • Second-generation “cold field emission” technology provides high-resolution imaging
    • AI image recognition speeds up defect detection and classification

    SANTA CLARA, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — Applied Materials, Inc. today introduced a new defect review system to help leading semiconductor manufacturers continue pushing the limits of chip scaling. The company’s SEMVision™ H20 system combines the industry’s most sensitive electron beam (eBeam) technology with advanced AI image recognition to enable better and faster analysis of buried nanoscale defects in the world’s most advanced chips.

    eBeam imaging has long been an important tool for examining defects that are too small to be seen with optical techniques. Its ultra-high resolution enables analysis of the tiniest imperfections in a sea of billions of nanoscale circuit patterns. Traditionally, optical techniques are used to scan a wafer for potential defects, and then eBeam is deployed to better characterize these defects. In the emerging “angstrom era” – where the smallest chip features can be just a few atoms thick – it is becoming increasingly difficult to differentiate true defects from false alarms.

    At today’s most advanced nodes, optical inspection creates much denser defect maps, which can require as much as a 100X increase in the number of defect candidates delivered to eBeam review. Process control engineers increasingly need defect review systems that can analyze exponentially more samples while maintaining the speed and sensitivity required for high-volume production.

    “Our new SEMVision H20 system allows the world’s leading chipmakers to better separate the signal from the noise amidst massive amounts of data provided by inspection tools,” said Keith Wells, Group Vice President of Imaging and Process Control at Applied Materials. “By combining advanced AI algorithms with the superior speed and resolution of our innovative eBeam technology, our system enables rapid identification of the smallest defects buried deep in 3D device structures, delivering faster and more accurate inspection results that can improve factory cycle time and yield.”

    Applied’s new eBeam technology is critical for complex 3D architecture inflections required to manufacture logic chips at the 2nm node and beyond – including new Gate-All-Around (GAA) transistors – as well as the formation of higher-density DRAM and 3D NAND memories. Applied’s SEMVision H20 defect review system has been adopted by leading logic and memory chipmakers for emerging technology nodes.

    The new SEMVision H20 system leverages two significant innovations to classify defects with remarkable accuracy, while delivering results as much as 3X faster than today’s most advanced techniques.

    • Next-generation CFE technology: Applied’s “cold field emission” (CFE) technology is a breakthrough in eBeam imaging that enables sub-nanometer resolution for identifying the smallest buried defects. Operating at room temperature, CFE produces a narrower beam with more electrons, thereby increasing nanoscale image resolution by up to 50 percent and imaging speed by up to 10X compared to conventional thermal field emission (TFE) technology. With SEMVision H20, Applied is introducing the second generation of its CFE technology, delivering even faster throughput while maintaining the industry’s highest sensitivity and resolution. This faster imaging speed provides increased coverage across each wafer, allowing chipmakers to gather the same amount of information in one third of the time.
    • Deep learning AI image models: SEMVision H20 uses deep learning AI capabilities for automatic extraction of true defects from false “nuisance” defects. Applied’s proprietary deep learning network is continuously trained with data from a chipmaker’s fab and sorts the defects into a distribution including voids, residues, scratches, particles and dozens of other defect types, enabling more accurate and efficient defect characterization.

    Applied’s SEMVision product family is the most advanced and widely used eBeam review system in the world. The new SEMVision H20 extends this leadership by combining next-generation CFE technology and advanced AI models to deliver faster and more accurate defect analysis, allowing chipmakers to accelerate chip development and make greater use of eBeam technology in high-volume manufacturing.

    About Applied Materials
    Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.

    Applied Materials Contact:
    Ricky Gradwohl (editorial/media) 408.235.4676
    Liz Morali (financial community) 408.986.7977

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/80511701-73c9-406d-8cb0-aeb0793e4497

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the fourth quarter and full year 2024, which included the summary below from its President and CEO, Dr. Raj Talluri.

    Fellow Shareholders,

    In the fourth quarter of 2024, we achieved key milestones in manufacturing, technology, and sales, setting the stage for a breakout year in 2025. We are focused on launching our first smartphone battery and converting our IoT pipeline into contracted backlog. Customers across multiple industries are acknowledging the readiness of our manufacturing capabilities, which are coming online at the perfect time to meet strong demand for our high energy-density solutions and diversified supply chain.

    Other recent highlights include:

    • Record Revenue: Fourth quarter revenues were a record $9.7 million, near the high end of our guidance. Full year 2024 revenues were also a record of $23.1 million, up 202%, from $7.6 million in 2023.
    • Smartphone Batteries: We shipped early engineering samples to our lead smartphone OEM, with results confirming that critical safety tests are passing. Additionally, cell dimensions were received in continuation of our agreement. We remain on track for commercial smartphone battery launches in 2025, pending successful completion of customer qualification. Furthermore, a new OEM customer submitted first samples purchase order, expanding our active engagements to 7 of the top 8 smartphone OEMs.
    • XR Batteries: Secured a landmark prepaid purchase order from a global technology leader in Artificial Intelligence (AI) and immersive technologies, reserving dedicated production capacity for next-generation smart eyewear. First samples, featuring our custom cells from Fab2 integrated into packs in our Korea facility, were delivered to the customer earlier this month.
    • Manufacturing Readiness: Fab2 in Malaysia completed Site Acceptance Testing (SAT) for the High-Volume Manufacturing (HVM) line, a key milestone in our journey to scale production. Additionally, we were honored to host several customers at our factory in Malaysia, conducting detailed line tours. And multiple OEMs initiated formal factory audits to support their qualification processes.
    • Products: We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. And the first EX-2M samples from Fab2 were shipped to customers on schedule.
    • Capitalization: 2024 year-end cash and cash equivalents of $272.9 million and continued operating expense discipline provides optionality for funding additional HVM lines.

    2025 is off to a fast start, fueled by accelerating AI innovation and a shifting landscape that is driving OEMs to diversify their supply chains. As a leader in high-energy-density battery technology with manufacturing facilities in Korea and Malaysia, Enovix is well positioned to capitalize on these industry trends.

    A key strategic decision in 2024 was to invest in the emerging AI-enabled smart eyewear market by developing a battery cell tailored for this market. We believe this investment is now paying off, as our product is expected to launch as this market is gaining momentum. New estimates from IDC project the smart eyewear market will reach multiple tens of millions of units by 2028, driven by recent hardware and software ecosystem advancements, the growing adoption of AI applications, and the expanding use cases across consumer, enterprise and defense markets. A majority of America’s largest tech companies, along with several top-tier Asia-based OEMs, have announced smart eyewear products. However, one major bottleneck remains – no product today delivers resiliency to all-day usage with ever-increasing sensor, communications (WiFi, Bluetooth, cellular, and satellite), and computing demands. This presents a prime opportunity for Enovix. With our high-energy-density battery already developed, HVM ramping up, and many of the market’s key players based in our backyard of Silicon Valley, we believe we are well-positioned to lead in this space.

    In smartphones, the strong tailwinds we identified last quarter continue in 2025. OEMs are increasingly requesting batteries with capacities near 7,000 milliamp-hours to support the growing power demands of next-generation AI applications. Additionally, with smartphone penetration already at saturation levels, market leaders are intensifying their focus on product differentiation – particularly in regions outside the US, where competition is fierce. We believe that our EX-2M and upcoming EX-3M battery solutions align with evolving demands, reinforcing our role as a strategic partner to leading OEMs.

    A new industry trend that has emerged subsequent to our last shareholder letter is supply chain-driven demand, particularly in the defense sector. Soon after the US elections in November, we observed an increase in inbound interest from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements. As a reminder, a significant portion of our 2024 revenue came from sales of conventional graphite battery products to defense customers. Earlier this month, we secured a purchase order for samples from a new defense customer with over $1 billion in annual sales to the US military, focused on autonomous AI systems. While these developments are still evolving, we are optimistic about the potential upside.

    Business Update

    Manufacturing. We successfully completed our key fourth-quarter objectives on schedule, including SAT for the HVM line and shipping the first EX-2M samples. We also further improved yields across both the Agility and HVM lines, with incremental targets in place throughout the year that we believe will ensure readiness for smartphone mass production in the fourth quarter of 2025. Customer audits are now underway at our Malaysia facility. While preparing Fab2 for mass production remains our primary manufacturing focus in 2025, we are also prioritizing efforts to accelerate custom cell development timelines. Our initial success in the emerging smart eyewear market was made possible because we dedicated resources to making a new variant of EX-1M designed to fit within the confines of the glasses frames. As we scale, our ability to swiftly develop tailored solutions with precision manufacturing and latest chemistries will play a critical role in our success. Additionally, we continue to act in a disciplined manner to select the right customer opportunities to pursue for long-term growth.

    Commercialization. Our business team remains focused on smartphone mass production as the primary commercialization goal for 2025. In October of 2024, we took a major step toward this objective by executing a strategic partnership that outlined key milestones leading up to our entry into the smartphone market by late 2025. This agreement was followed by a purchase order in the fourth quarter of 2024 tied to one of those milestones, and in the first quarter of 2025 we received battery dimensions for a planned 2025 smartphone launch. Additionally, we secured a first purchase order for samples from a new global smartphone manufacturer, expanding our customer engagements to 7 of the top 8 smartphone OEMs.

    In addition to being focused on smartphone business, we are also being highly selective with IoT opportunities, prioritizing segments where our technology and global supply chain have a strong competitive advantage. Among these, smart eyewear emerged as a natural fit, and we are now in the process of developing custom cells for marquee customers. This quarter, we shipped our first samples to customers using our Korea-based packing capability that is now fully integrated with our silicon cell production out of Malaysia. Our first commercial shipments are scheduled to commence mid-year, and we are actively securing additional IoT purchase orders.

    In the EV space, we continue advancing development agreements with two of the world’s largest automotive OEMs. Consistent with our capital-efficient strategy, we remain focused on targeted collaborations that allow us to scale in this vertical while optimizing investment.

    Across these markets, our disciplined approach to commercialization ensures that we are not only securing near-term revenue opportunities but also building a foundation for long-term leadership in high-energy-density battery solutions.

    Products:

    Our battery technology continues to advance across multiple generations, with significant progress in safety and performance validation, customer sampling, and next-generation design. We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. For EX-2M, we delivered early engineering samples to OEMs across both smartphone and IoT markets and received positive feedback. Additionally, EX-2M has outperformed traditional graphite-based cells in select safety tests such as crush and impact tests. We are now refining our electrochemistry to further enhance performance metrics. Looking ahead, we have officially kicked off the design phase for EX-3M. As we continue refining key performance specifications, we are incorporating feedback from lead OEMs to ensure alignment with their evolving requirements. Our goal is to finalize the EX-3M design in early 2025, paving the way for our next-generation battery technology.

    These advancements reflect our commitment to delivering high-performance, high-energy-density battery solutions across multiple product categories, reinforcing our position as a leader in battery innovation.

    Financials: Revenue was $9.7 million in the fourth quarter of 2024, near the high end of our guidance range and up more than 30 percent year over year. A majority of revenues were from our conventional battery capacity in South Korea which is seeing a positive demand environment from defense customers and benefiting from increased collaboration with our US engineers. Our GAAP cost of revenue was $8.7 million in the fourth quarter of 2024 leading to the Company’s first ever positive gross margin which totaled $1.1 million or 11% of sales.

    Our GAAP operating expenses were $35.6 million in the fourth quarter of 2024 compared to $48.6 million in the third quarter, which reflects some of the expense reductions related to our shift of various functions to lower cost regions such as Malaysia and India. Our non-GAAP operating expenses were $24.3 million in the fourth quarter of 2024, down from $27.2 million in the previous quarter.

    Our GAAP net loss attributable to Enovix was $37.5 million in the fourth quarter of 2024, compared to $22.5 million in the previous quarter. As a reminder our GAAP net loss is impacted quarterly by changes in fair value of common stock warrants, which resulted in a $5.1 million expense in the fourth quarter compared to a $29.9 million benefit in the third quarter of 2024.  

    Adjusted EBITDA in the fourth quarter of 2024 was a loss of $11.7 million compared to an adjusted EBITDA loss of $21.6 million in the previous quarter. The sequential improvement was driven by positive gross margin, lower operating expenses and a $1.0 million increase in depreciation and amortization.

    Earnings per share loss in the fourth quarter of 2024 was $0.20 on a GAAP basis and $0.11 on a non-GAAP basis compared to third quarter earnings per share loss of $0.30 on a GAAP basis and $0.17 on a non-GAAP basis.

    We exited 2024 with $272.9 million of cash and cash equivalents following the receipts of approximately $107 million of net proceeds from an equity offering in the fourth quarter which was partially offset by $16.0 million used in operating activities and capital expenditures of $16.4 million during the quarter.

    A full reconciliation of our GAAP to non-GAAP results is available later in this report.

    Outlook

    For the first quarter of 2025, we expect revenue between $3.5 million and $5.5 million, a GAAP EPS loss of $0.23 to $0.29, an adjusted EBITDA loss of $21.0 million to $27.0 million, and a non-GAAP EPS loss of $0.15 to $0.21.

    Summary

    The top milestones we identified at the beginning of 2024 were achieving SAT for agility and our high-volume manufacturing lines in Malaysia and delivering samples of our leading smartphone batteries, EX-1M and EX-2M, to customers. Not only did we hit these top milestones, we also advanced relationships with market leaders in smartphones, AR/VR, and automotive industries. We believe that these relationships, supported by purchase orders and commercial launch schedules, provide a clear path for us to commence mass production in 2025.

    Conference Call Information

    Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, February 19, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q4-2024.open-exchange.net/registration. This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

    About Enovix

    Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to the vehicle you drive, needs a better battery. Enovix partners with OEMs worldwide to usher in a new era of user experiences. Our innovative, materials-agnostic approach to building a higher performing battery without compromising safety keeps us flexible and on the cutting-edge of battery technology innovation.

    Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit https://enovix.com and follow us on LinkedIn.

    Non-GAAP Financial Measures

    Non-GAAP operating expenses, EBITDA, Adjusted EBITDA, non-GAAP net loss per share, and other non-GAAP measures are intended as supplemental financial measures of our performance that provide an additional tool for investors to use in evaluating ongoing operating results, trends, and in comparing our financial measures with those of comparable companies.

    However, you should be aware that other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

    While Enovix provides first quarter 2025 guidance for adjusted EBITDA loss and non-GAAP EPS loss, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures. Such qualitative reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock-based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

    Forward-Looking Statements

    This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, setting the stage, should, would and similar expressions that convey uncertainty about future events or outcomes. Forward-looking statements in this letter to shareholders include, without limitation, out expected performance and results for the first quarter of 2025; that 2025 will be a breakout year; the timing for completion of customer qualification for and the launch of our first smartphone battery in 2025; our expectations regarding our ability to commence mass production in 2025 and full utilization of the first HVM line in 2026; our expectations regarding, and our ability to respond to, market and customer demand; our expectations regarding the level of customers’ interest in our high energy-density solutions and diversified supply chain, the demand for more energy dense batteries and the suitability of our products to address this demand, and the impact of artificial intelligence (“AI”) features on the foregoing; our ability to develop and deliver a battery cell tailored to the smart eyewear market, including our ability to deliver a battery that delivers a full day of usage on a single charge, and the anticipated benefits of our investments in these products and market; our anticipated commercial shipments of batteries for smart eyewear and other IoT products by mid-year 2025; our ability to convert our IoT pipeline into contracted backlog; projected improvements in our manufacturing and commercialization and R&D activities at Fab2, including the ability of the sales team to support the path to profitability by attracting demand across high-growth markets; our achievement of the milestones under our strategic partnership with a leading smartphone OEM; expectations relating to broader agreements with automative OEMs; our ability to successfully complete safety testing and customer qualification and our ability to and the timing of our entry into the smartphone market in 2025 with high-volume production from our Fab2 facility; our ability to meet our spec targets for energy density, cycle life and fast charging for our EX-1M cells; our ability to develop and commercialize customer and product-specific variants of our products and other tailored solutions for our customers; our expectations regarding EX-1M and EX-2M readiness and production, and predicted EX-3M battery solution production; our ability to meet goals for yield, throughput, energy density, cycle life and fast charging; the readiness of our production and manufacturing capabilities; our expectations with respect to the development and innovation of EX-2M and EX-3M, including our ability to finalize the EX-3M design in Q1 2025; our expectations regarding Fab2 in and its capacity to support multiple customer qualifications; our observations and expectations around supply chain-driven demand including in the defense sector, and interest from specific customer segments including drone manufacturers and military suppliers; the anticipated contributions of our R&D teams to support product innovation; our revenue funnel; our efforts in the portable electronics and EV markets, including the IoT, smartphone, smart eyewear and virtual reality categories; expectations regarding the reservation and use of production capacity and our ability to satisfy production expectations relating to next-generation smart eyewear; our ability to meet milestones and deliver on our objectives and expectations; our ability to fund additional HVM lines; anticipated increases in demand and interest in our products from manufacturers and suppliers seeking battery solutions that comply with allied country supply chain requirements; the implementation and expected success of our business model and growth strategy, including our focus on the addressable market categories in which we believe an improved battery drives a high value to the product and premium pricing for our solutions; our ability to manage our expenses and realize our annual cost savings goals; our ability to capitalize on industry trends, including trends relating to accelerating AI innovation; our ability to manage and achieve the benefits of our restructuring efforts, including continued operating expense discipline to facilitate funding for additional HVM lines at Fab2; and forecasts of our financial and performance metrics.

    Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to improve energy density, cycle life, fast charging, capacity roll off and gassing metrics among our products; our reliance on new and complex manufacturing processes for our operations; our ability to establish sufficient manufacturing operations and improve and optimize manufacturing processes to meet demand, source materials and establish supply relationships, and secure adequate funds to execute on our operational and strategic goals; our reliance on a manufacturing agreement with a Malaysia-based company for many of the facilities, procurement, personnel and financing needs of our operations; our operation in international markets, including our exposure to operational, financial and regulatory risks, as well as risks relating to geopolitical tensions and conflicts, including changes in trade policies and regulations; that we may be required to pay costs for components and raw materials that are more expensive than anticipated, including as a result of trade barriers, trade sanctions, export restrictions, tariffs, embargoes or shortages and other general economic and political conditions, which could delay the introduction of our products and negatively impact our business; our ability to adequately control the costs associated with our operations and the components necessary to build our lithium-ion battery cells; our lengthy sales cycles; the safety hazards associated with our batteries and the manufacturing process; a concentration of customers in the military market and our dependence on these customer accounts; certain unfavorable terms in our commercial agreements that may limit our ability to market our products; our ability to develop, market and sell our batteries, expectations relating to the performance of our batteries, and market acceptance of our products; our ability to accurately estimate the future supply and demand of our batteries, which could result in a variety of inefficiencies in our business; changes in consumer preferences or demands; changes in industry standards; the impact of technological development and competition; and global economic conditions, including tariffs, inflationary and supply chain pressures, and political, social, and economic instability, including as a result of armed conflict, war or threat of war, or trade and other international disputes that could disrupt supply or delivery of, or demand for, our products.

    For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For media and investor inquiries, please contact:

    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

     
    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
     
      December 29, 2024   December 31, 2023
    Assets      
    Current assets:      
    Cash and cash equivalents $ 272,869     $ 233,121  
    Short-term investments   —       73,694  
    Accounts receivable, net   4,566       909  
    Notes receivable, net   4       1,514  
    Inventory   7,664       8,737  
    Prepaid expenses and other current assets   9,903       5,202  
    Total current assets   295,006       323,177  
    Property and equipment, net   167,947       166,471  
    Customer relationship intangibles and other intangibles, net   36,394       42,168  
    Operating lease, right-of-use assets   13,479       15,290  
    Goodwill   12,217       12,098  
    Other assets, non-current   2,126       5,100  
    Total assets $ 527,169     $ 564,304  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 9,492     $ 21,251  
    Accrued expenses   19,843       13,976  
    Accrued compensation   8,228       10,731  
    Short-term debt   9,452       5,917  
    Deferred revenue   3,650       6,708  
    Other liabilities   3,036       2,435  
    Total current liabilities   53,701       61,018  
    Long-term debt, net   169,820       169,099  
    Warrant liability   28,380       42,900  
    Operating lease liabilities, non-current   13,293       15,594  
    Deferred revenue, non-current   3,774       3,774  
    Deferred tax liability   8,784       10,803  
    Other liabilities, non-current   14       13  
    Total liabilities   277,766       303,201  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 190,559,335 and 167,392,315 as of December 29, 2024 and December 31, 2023, respectively   19       17  
    Preferred stock, $0.0001 par value; authorized shares of 10,000,000; no shares issued or outstanding as of December 29, 2024 and December 31, 2023, respectively   —       —  
    Additional paid-in-capital   1,067,951       857,037  
    Accumulated other comprehensive loss   (143 )     (62 )
    Accumulated deficit   (821,086 )     (598,845 )
    Total Enovix’s stockholders’ equity   246,741       258,147  
    Non-controlling interest   2,662       2,956  
    Total equity   249,403       261,103  
    Total liabilities and equity $ 527,169     $ 564,304  
     
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In Thousands, Except Share and per Share Amounts)
     
      Quarters Ended   Fiscal Years Ended
      December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Revenue $ 9,717     $ 7,381     $ 23,074     $ 7,644  
    Cost of revenue   8,665       19,769       25,119       63,061  
    Gross margin   1,052       (12,388 )     (2,045 )     (55,417 )
    Operating expenses:              
    Research and development   22,433       34,582       124,506       88,392  
    Selling, general and administrative   13,135       17,807       74,311       79,014  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost   —       —       41,807       3,021  
    Total operating expenses   35,568       52,389       240,624       174,838  
    Loss from operations   (34,516 )     (64,777 )     (242,669 )     (230,255 )
    Other income (expense):              
    Change in fair value of common stock warrants   (5,115 )     2,040       12,244       6,180  
    Interest income   2,587       4,128       12,332       14,070  
    Interest expense   (1,719 )     (1,629 )     (6,787 )     (4,456 )
    Other income (loss), net   2,463       (433 )     954       (304 )
    Total other income (loss), net   (1,784 )     4,106       18,743       15,490  
    Loss before income tax expense (benefit)   (36,300 )     (60,671 )     (223,926 )     (214,765 )
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Net loss   (37,452 )     (60,038 )     (222,534 )     (214,132 )
    Net gain (loss) attributable to non-controlling interests   13       (61 )     (293 )     (61 )
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
                   
    Net loss per share attributable to Enovix shareholders, basic $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    Weighted average number of common shares outstanding, basic   184,971,942       165,708,522       175,038,107       159,065,697  
    Net loss per share attributable to Enovix shareholders, diluted $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    Weighted average number of common shares outstanding, diluted   184,971,942       165,708,522       175,038,107       159,575,555  
     
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
    (In Thousands) Fiscal Years
        2024       2023  
    Cash flows used in operating activities:      
    Net loss $ (222,534 )   $ (214,132 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   44,961       34,009  
    Stock-based compensation   58,837       69,452  
    Changes in fair value of common stock warrants   (12,244 )     (6,180 )
    Impairment and loss on disposals of long-lived assets   38,258       4,411  
    Others   448       703  
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   (2,465 )     (370 )
    Inventory   1,073       4,509  
    Prepaid expenses and other assets   (2,211 )     (626 )
    Accounts payable   (7,970 )     6,096  
    Accrued expenses and compensation   3,016       1,977  
    Deferred revenue   (3,058 )     (3,860 )
    Deferred tax liability   (2,697 )     (813 )
    Other liabilities   (2,047 )     188  
    Net cash used in operating activities   (108,633 )     (104,636 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (76,188 )     (61,795 )
    Routejade acquisition, net of cash and restricted cash acquired   —       (9,968 )
    Purchases of investments   (31,812 )     (138,343 )
    Maturities of investments   106,621       67,150  
    Net cash used in investing activities   (1,379 )     (142,956 )
    Cash flows from financing activities:      
    Proceeds from issuance of common stocks, net of issuance costs   107,192       —  
    Proceeds from issuance of Convertible Senior Notes and loans   4,572       172,500  
    Repayment of debt   (209 )     (69 )
    Payments of debt issuance costs   —       (5,917 )
    Purchase of Capped Calls   —       (17,250 )
    Payroll tax payments for shares withheld upon vesting of RSUs   (7,079 )     (3,931 )
    Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs   44,771       11,928  
    Proceeds from issuance of common stock under employee stock purchase plan   1,506       2,350  
    Repurchase of unvested restricted common stock   (4 )     (26 )
    Net cash provided by financing activities   150,749       159,585  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (1,169 )     154  
    Change in cash, cash equivalents, and restricted cash   39,568       (87,853 )
    Cash and cash equivalents and restricted cash, beginning of period   235,123       322,976  
    Cash and cash equivalents, and restricted cash, end of period $ 274,691     $ 235,123  
           

    Net Loss Attributable to Enovix to Adjusted EBITDA Reconciliation

    While we prepare our consolidated financial statements in accordance with GAAP, we also utilize and present certain financial measures that are not based on GAAP. We refer to these financial measures as “non-GAAP” financial measures. In addition to our financial results determined in accordance with GAAP, we believe that EBITDA and Adjusted EBITDA are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses.

    These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures.

    We use non-GAAP financial information to evaluate our ongoing operations and for internal planning, budgeting and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing its operating performance and comparing its performance with competitors and other comparable companies. You should review the reconciliations below but not rely on any single financial measure to evaluate our business.

    “EBITDA” is defined as earnings (net loss) attributable to Enovix adjusted for interest expense, income tax benefit, depreciation and amortization expense. “Adjusted EBITDA” includes additional adjustments to EBITDA such as stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, impairment of equipment and other special items as determined by management which it does not believe to be indicative of its underlying business trends.

    Below is a reconciliation of net loss attributable to Enovix on a GAAP basis to the non-GAAP EBITDA and Adjusted EBITDA financial measures for the periods presented below (in thousands):

      Quarters Ended   Fiscal Years Ended
      December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Interest expense   1,719       1,629       6,787       4,456  
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Depreciation and amortization   7,544       24,009       44,961       34,009  
    EBITDA   (27,050 )     (34,972 )     (171,885 )     (176,239 )
    Stock-based compensation expense (1)   10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants   5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up   —       2,206       1,907       2,206  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost (1)   —       —       41,807       3,021  
    Acquisition cost   —       158       —       1,273  
    Adjusted EBITDA $ (11,728 )   $ (23,028 )   $ (82,794 )   $ (102,415 )

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.


    Free Cash Flow Reconciliation

    We define “Free Cash Flow” as (i) net cash from operating activities less (ii) capital expenditures, net of proceeds from disposals of property and equipment, all of which are derived from our Consolidated Statements of Cash Flow. The presentation of non-GAAP Free Cash Flow is not intended as an alternative measure of cash flows from operations, as determined in accordance with GAAP. We believe that this financial measure is useful to investors because it provides investors to view our performance using the same tool that we use to gauge our progress in achieving our goals and it is an indication of cash flow that may be available to fund investments in future growth initiatives. Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measures for the periods presented below (in thousands):

      Fiscal Years
        2024       2023  
    Net cash used in operating activities $ (108,633 )   $ (104,636 )
    Capital expenditures   (76,188 )     (61,795 )
    Free Cash Flow $ (184,821 )   $ (166,431 )

    Other Non-GAAP Financial Measures Reconciliation
    (In Thousands, Except Share and per Share Amounts)

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    Revenue   $ 9,717     $ 7,381     $ 23,074     $ 7,644  
                     
    GAAP cost of revenue   $ 8,665     $ 19,769     $ 25,119     $ 63,061  
    Stock-based compensation expense     (124 )     (459 )     (320 )     (5,460 )
    Inventory step-up     —       (2,206 )     (1,907 )     (2,206 )
    Non-GAAP cost of revenue   $ 8,541     $ 17,104     $ 22,892     $ 55,395  
                     
    GAAP gross margin   $ 1,052     $ (12,388 )   $ (2,045 )   $ (55,417 )
    Stock-based compensation expense     124       459       320       5,460  
    Inventory step-up     —       2,206       1,907       2,206  
    Non-GAAP gross margin   $ 1,176     $ (9,723 )   $ 182     $ (47,751 )
                     
    GAAP research and development (R&D) expense   $ 22,433     $ 34,582     $ 124,506     $ 88,392  
    Stock-based compensation expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Amortization of intangible assets     (416 )     (277 )     (1,664 )     (277 )
    Non-GAAP R&D expense   $ 16,935     $ 28,968     $ 97,989     $ 60,706  
                     
    GAAP selling, general and administrative (SG&A) expense   $ 13,135     $ 17,807     $ 74,311     $ 79,014  
    Stock-based compensation expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (773 )     (536 )     (3,077 )     (536 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP SG&A expense   $ 7,361     $ 11,289     $ 38,786     $ 40,981  
                     
    GAAP operating expenses   $ 35,568     $ 52,389     $ 240,624     $ 174,838  
    Stock-based compensation expense included in R&D expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Stock-based compensation expense included in SG&A expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (1,189 )     (813 )     (4,741 )     (813 )
    Impairment of equipment     —       —       —       (4,411 )
    Restructuring cost (1)     —       —       (41,807 )     (3,021 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP operating expenses   $ 24,296     $ 40,257     $ 136,775     $ 101,687  

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024    		   December 31,
    2023    		   December 29,
    2024    		   December 31,
    2023
    GAAP loss from operations   $ (34,516 )   $ (64,777 )   $ (242,669 )   $ (230,255 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Amortization of intangible assets     1,189       813       4,741       813  
    Inventory step-up     —       2,206       1,907       2,206  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP loss from operations   $ (23,120 )   $ (49,980 )   $ (136,593 )   $ (149,438 )
                     
    GAAP net loss attributable to Enovix   $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants     5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up     —       2,206       1,907       2,206  
    Amortization of intangible assets     1,189       813       4,741       813  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP net loss attributable to Enovix shareholders   $ (20,954 )   $ (47,220 )   $ (128,409 )   $ (139,434 )
                     
    GAAP net loss per share attributable to Enovix, basic   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    GAAP net loss per share attributable to Enovix, diluted   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  
                     
    Non-GAAP net loss per share attributable to Enovix, basic   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.88 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    Non-GAAP net loss per share attributable to Enovix, diluted   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.87 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  

    ________________________
    (1)    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

    The MIL Network –

  • MIL-OSI: PDF Solutions to Acquire secureWISE to Expand the Reach of its Semiconductor Manufacturing Data Platform

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — PDF Solutions, Inc. (Nasdaq: PDFS) today announced it has entered into a definitive agreement to acquire secureWISE, LLC, the most widely used secure, remote connectivity solution in the semiconductor manufacturing equipment industry, from Telit IOT Solutions Inc.

    The secureWISE global network enables equipment manufacturers to bring up new equipment faster, provide operational support, and maximize the value derived from the equipment customers’ investments. It is currently used by over 100 equipment vendors to connect and control their tools located in over 190 semiconductor fabs and to manage the exchange of multiple petabytes of data annually.

    PDF Solutions empowers semiconductor companies to maximize their manufacturing effectiveness. The PDF Solutions platform breaks down data silos to enable engineers to uncover critical relationships across manufacturing and design, resulting in better process control, product screening, and equipment operations.

    As the semiconductor industry becomes more globally distributed, and as advanced devices rely on the integration of multiple chiplets into a single package, more collaboration and integration are required across the semiconductor industry. This collaboration needs to be executed securely with each participant controlling access to its intellectual property.

    Today, secureWISE customers have built applications on top of the secureWISE network to deliver equipment analytics. PDF Solutions expects the acquisition to accelerate equipment makers’ ability to derive value from equipment data by enabling them to leverage PDF Solutions’ Exensio analytics software.

    Beyond enabling equipment vendors to build equipment analytics at foundries, the acquisition of secureWISE is expected to dramatically expand the capability of PDF Solutions’ secure DEX OSAT network by allowing equipment makers, fab operators, and fabless companies to collaborate to optimize chip manufacturing and test.   

    “This acquisition extends PDF Solutions analytics for equipment makers and fabless to the factory manufacturing level, which allows them to generate value from AI,” said Dr. John Kibarian, President, CEO and co-founder of PDF Solutions. He continued, “We provide the leading analytics platform for semiconductor manufacturing, and with secureWISE, the PDF Solutions platform will also be able to help members of the semiconductor ecosystem collaborate through a secure, direct connection and control the manufacturing process down to the production equipment.”

    Mike Dempsey, Vice President of secureWISE LLC, said, “We believe PDF Solutions is the ideal partner to accelerate secureWISE’s evolution, ensuring we remain at the forefront of industry trends and ahead of our customers’ needs. This acquisition will strengthen our ability to anticipate, pioneer, and integrate a far richer suite of security, collaboration, and analytics capabilities into our platform. As data exchange and collaboration become increasingly relevant to the semiconductor industry, this acquisition will better position secureWISE to deliver maximum long-term benefit to its customers who have invested in our platform.”

    Under the terms of the definitive agreement, PDF Solutions will pay a cash amount of $130.0 million, subject to customary purchase price adjustments. The purchase price will be funded by a combination of cash on hand and $70M of new bank debt. The acquisition is subject to certain closing conditions and is expected to close in the first calendar quarter of 2025.

    TD Securities (USA) LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to PDF Solutions.

    Updated Financial Outlook

    John Kibarian, CEO and President of PDF Solutions, said, “Assuming the transaction closes in the first quarter of 2025, and with purchase accounting adjustments, we would expect to achieve a full year 2025 revenue growth rate between 21% to 23% on year-over-year basis. Given that, we also expect to achieve 2025 gross margin in line with our corporate gross margin, our target model 20% operating margin, and for EPS to be slightly accretive.”

    Conference Call

    PDF Solutions will discuss this announcement on a live conference call beginning at 3:00 p.m. Pacific Time / 6:00 p.m. Eastern Time today. To participate in the live call, analysts and investors should pre-register at: https://register.vevent.com/register/BI9abfc7eadb2245c5ba00c59922fe6c87.

    Registrants will receive dial-in information and a unique passcode to access the call. We encourage participants to dial into the call ten minutes ahead of the scheduled time. The teleconference will also be webcast simultaneously on the Company’s website at https://ir.pdf.com/webcasts. A replay of the conference call webcast will be available after the call on the Company’s investor relations website. A copy of this press release will also be available on PDF Solutions’ website at News & PR Archives – PDF Solutions following the date of this release.

    Forward-Looking Statements

    The statements in this press release regarding the expected future financial results, benefits and synergies of the secureWISE acquisition on PDF Solution’s product offerings, and the expected closing of the secureWISE acquisition are forward looking and are subject to future events and circumstances. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: uncertainties with respect to the timing of the closing of the proposed transaction, including when and whether all conditions to closing will be satisfied; the failure of expected benefits from the proposed transaction to be realized or to be realized within the expected time period; uncertainties with respect to the future performance of secureWISE following an acquisition by PDF Solutions; PDF Solution’s ability to integrate secureWISE and its product and service offerings, the cost and schedule of new product development; continued adoption of the PDF Solution’s and secureWISE’s solutions by new and existing customers; the fact that operating costs and business disruption may be greater than expected following the public announcement or consummation of the proposed transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the public announcement or consummation of the proposed transaction; the incurrence of significant transaction costs related to the proposed transaction; unknown or understated liabilities of secureWISE; and other risks set forth in PDF Solutions’ periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Reports on Form 10-K, most recently filed for the year ended December 31, 2023, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and amendments to such reports. The forward-looking statements made herein are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

    About PDF Solutions 

    PDF Solutions (Nasdaq: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics industry ecosystem to improve the yield and quality of their products and operational efficiency for increased profitability. The Company’s products and services are used by Fortune 500 companies across the semiconductor and electronics ecosystem to achieve smart manufacturing goals by connecting and controlling equipment, collecting data generated during manufacturing and test operations, and performing advanced analytics and machine learning to enable profitable, high-volume manufacturing. 

    Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations across North America, Europe, and Asia. The Company (directly or through one or more subsidiaries) is an active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and DMDII. For the latest news and information about PDF Solutions or to find office locations, visit https://www.pdf.com. 

    Headquartered in Santa Clara, California, PDF Solutions also operates worldwide in Canada, China, France, Germany, Italy, Japan, Korea, Sweden, and Taiwan. For the Company’s latest news and information, visit https://www.pdf.com. 

    About secureWISE 

    The secureWISE platform enables secure and controlled remote connectivity, collaboration and service enablement in the semiconductor industry. The secureWISE suite of products and services is designed to give OEM suppliers role-based, real-time and on-demand access to their equipment that is installed at the production facilities of their customers, to deliver valuable operational insights, mission-critical performance, substantial time and cost savings, and new service revenue opportunities. As the only remote access tool built around the ISMI guidelines, secureWISE is installed in over 90% of the world’s 300mm semiconductor fabs and also numerous solar and chemical plants across the globe. https://www.telit.com/iot-platforms-overview/telit-securewise/ 

    PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. and/or its subsidiaries in the United States and other countries. Other trademarks used herein are the property of their owners. 

    Company Contacts:      
    Adnan Raza    Sonia Segovia 
    Chief Financial Officer    Investor Relations 
    Tel: (408) 516-0237    Tel: (408) 938-6491 
    Email: adnan.raza@pdf.com   Email: sonia.segovia@pdf.com 

    The MIL Network –

  • MIL-OSI: Tenaris Announces 2024 Fourth Quarter and Annual Results

    Source: GlobeNewswire (MIL-OSI)

    The financial and operational information contained in this press release is based on audited consolidated financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.

    LUXEMBOURG, Feb. 19, 2025 (GLOBE NEWSWIRE) — Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the fourth quarter and year ended December 31, 2024 in comparison with its results for the fourth quarter and year ended December 31, 2023.

    Summary of 2024 Fourth Quarter Results

    (Comparison with third quarter of 2024 and fourth quarter of 2023)

      4Q 2024 3Q 2024 4Q 2023
    Net sales ($ million) 2,845 2,915 (2%) 3,415 (17%)
    Operating income ($ million) 558 537 4% 819 (32%)
    Net income ($ million) 519 459 13% 1,146 (55%)
    Shareholders’ net income ($ million) 516 448 15% 1,129 (54%)
    Earnings per ADS ($) 0.94 0.81 16% 1.92 (51%)
    Earnings per share ($) 0.47 0.40 16% 0.96 (51%)
    EBITDA* ($ million) 726 688 6% 975 (26%)
    EBITDA margin (% of net sales) 25.5% 23.6%   28.6%  
               

    *EBITDA in fourth quarter of 2024 includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $659 million, or 23.2% of sales

    Net sales in the fourth quarter were more resilient than expected as we were able to reduce inventories and advance some shipments in the Middle East and Turkey, despite lower demand in Mexico, Argentina and Saudi Arabia. Our EBITDA declined 4% on a comparable basis with the margin supported by a favorable product mix which offset the effect of residual price declines in North America. Net income increased due to the partial reversal of the provision made in the second quarter for the ongoing litigation related to the acquisition of a participation in Usiminas jointly with our associate company, Ternium.

    During the quarter, our free cash flow amounted to $310 million and, after spending $299 million on dividends and $454 million on share buybacks, our net cash position declined to $3.6 billion at December 31, 2024.

    Summary of 2024 Annual Results

      12M 2024 12M 2023 Increase/(Decrease)
    Net sales ($ million) 12,524 14,869 (16%)
    Operating income ($ million) 2,419 4,316 (44%)
    Net income ($ million) 2,077 3,958 (48%)
    Shareholders’ net income ($ million) 2,036 3,918 (48%)
    Earnings per ADS ($) 3.61 6.65 (46%)
    Earnings per share ($) 1.81 3.32 (45%)
    EBITDA* ($ million) 3,052 4,865 (37%)
    EBITDA margin (% of net sales) 24.4% 32.7%  
           

    *EBITDA in 12M 2024 includes a $107 million loss from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $3,159 million, or 25.2% of sales.

    Our sales in 2024 amounted to $12.5 billion with a decrease of 16% compared to 2023, primarily reflecting a decline in market prices for our tubular products used in onshore drilling applications in the Americas, lower drilling activity in Mexico and Colombia, lower shipments for pipeline projects in Argentina and lower sales of mechanical pipes in Europe. On the other hand, sales in the Middle East reached a record level as Saudi Aramco replenished OCTG stocks and increased gas drilling activity. EBITDA and margins also declined to $3.1 billion, being further affected by a $107 million loss from a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Net income amounted to $2.1 billion, or 17% of net sales, and was affected by a reduction of $43 million from our participation in Ternium related to the same case.

    Cash flow provided by operating activities amounted to $2.9 billion during 2024. This was used to fund capital expenditures of $694 million, with the remainder distributed to shareholders through dividend payments of $758 million and share buybacks for $1,440 million in the year. We maintained a net cash position of $3.6 billion at the end of December 2024.

    Change of Chief Financial Officer

    Effective as of May 2, 2025, Mr. Carlos Gomez Alzaga will assume the position of Chief Financial Officer, replacing Ms. Alicia Mondolo, who will retire from this role.

    Mr. Gomez Alzaga, who has more than 20 years of experience in Administration and Finance at Tenaris, previously served as Regional CFO for Mexico and Central America, and Economic and Financial Planning Director, among other positions, and currently holds the position of Regional CFO for Argentina and South America.

    Ms. Mondolo will continue to serve as senior advisor to our Chairman and CEO.

    Paolo Rocca and the Board of Tenaris would like to express their gratitude and appreciation for Alicia´s contribution as CFO of Tenaris and her 41 years of service within the Techint Group.

    Market Background and Outlook

    Oil prices remain relatively stable (as they have done over the past two years) with OPEC+ maintaining their voluntary production cuts in the face of limited global demand growth. European and US natural gas prices have, however, risen as relatively cold winter weather and the cutoff of Russian supply have led to a rapid drawdown in inventories.

    These prices and the continuing balance between oil and gas demand and supply should continue to support overall investment in oil and gas drilling activity, as well as OCTG demand, at current levels, albeit with some regional nuances.

    In North America, consolidation among major operators and drilling efficiencies led to a drop in US drilling activity last year, which has now stabilized, while OCTG consumption per rig has been increasing. In Latin America, drilling activity is increasing in Argentina, as investment in pipeline and LNG infrastructure investment for the Vaca Muerta shale moves forward, while, in Mexico, it has been affected by financial constraints on Pemex. In the Middle East, some reduction in oil drilling has taken place in Saudi Arabia while gas drilling has risen, and, in Abu Dhabi, oil drilling is increasing.

    OCTG reference prices in North America, which fell steadily for two years until the second half of 2024, have so far recovered by 9% from their August low and could rise further following the US government’s announced reset of Section 232 tariffs on all imports of steel products without exception.

    In this environment, we expect our sales and EBITDA (excluding extraordinary effects) in the first quarter to be in line with the previous one before rising moderately in the second quarter. Beyond that, likely changes in US tariffs and their possible ramifications on trade flows will introduce a new dynamic with a high level of uncertainty for costs and prices to our results.

    Annual Dividend Proposal

    Upon approval of the Company´s annual accounts in April 2025, the board of directors intends to propose, for approval of the annual general shareholders’ meeting to be held on May 6, 2025, the payment of a dividend per share of $0.83 (in an aggregate amount of approximately $0.9 billion), which would include the interim dividend per share of $0.27 (approximately $0.3 billion) paid in November 2024. If the annual dividend is approved by the shareholders, a dividend of $0.56 per share ($1.12 per ADS), or approximately $0.6 billion, will be paid according to the following timetable:

    • Payment date: May 21, 2025
    • Record date: May 20, 2025
    • Ex-dividend for securities listed in Europe and Mexico: May 19, 2025
    • Ex-dividend for securities listed in the United States: May 20, 2025

    Analysis of 2024 Fourth Quarter Results

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 4Q 2024 3Q 2024
    		 4Q 2023
    Seamless 748 746 0% 760 (2%)
    Welded 164 191 (14%) 246 (33%)
    Total 913 937 (3%) 1,006 (9%)
               

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 4Q 2024 3Q 2024 4Q 2023
    (Net sales – $ million)          
    North America 1,131 1,273 (11%) 1,501 (25%)
    South America 595 484 23% 590 1%
    Europe 341 280 22% 302 13%
    Asia Pacific, Middle East and Africa 629 754 (17%) 805 (22%)
    Total net sales ($ million) 2,695 2,790 (3%) 3,198 (16%)
    Services performed on third party tubes ($ million) 93 97 (4%) 34 176%
    Operating income ($ million) 533 527 1% 780 (32%)
    Operating margin (% of sales) 19.8% 18.9%   24.4%  
               

    Net sales of tubular products and services decreased 3% sequentially and 16% year on year. Sequentially volumes sold decreased 3% while average selling prices decreased less than 1% as a favorable product mix offset price declines in North America. Sequentially, in North America sales declined due to lower prices throughout the region and lower activity in Mexico. In South America sales increased as higher sales in Brazil with shipments to the Raia pipeline and a recovery of OCTG offset lower sales for pipelines and the industrial market in Argentina. In Europe sales increased due to shipments to the Sakarya offshore line pipe project and higher sales of OCTG in Turkey. In Asia Pacific, Middle East and Africa sales declined due to lower sales in Saudi Arabia upon completion of inventory replenishment program and lower activity, partially offset by an increase in sales to the UAE.

    Operating results from tubular products and services amounted to a gain of $533 million in the fourth quarter of 2024 compared to a gain of $527 million in the previous quarter and a gain of $780 million in the fourth quarter of 2023. This quarter’s operating income includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Excluding this gain Tubes operating income would have amounted to $467 million (17.3% of sales) in the fourth quarter, a 12% sequential reduction following the decline in sales and margins. Margins declined due to the decline in prices and a more costly product mix.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 4Q 2024 3Q 2024 4Q 2023
    Net sales ($ million) 150 125 20% 217 (31%)
    Operating income ($ million) 25 10 156% 39 (36%)
    Operating margin (% of sales) 16.8% 7.9%   18.1%  
               

    Net sales of other products and services increased 20% sequentially and decreased 31% year on year. Sequentially, sales increased mainly due to higher sales of oil services in Argentina and coiled tubing.

    Selling, general and administrative expenses, or SG&A, amounted to $446 million, or 15.7% of net sales, in the fourth quarter of 2024, compared to $454 million, 15.6% in the previous quarter and $471 million, 13.8% in the fourth quarter of 2023. Sequentially, the decline in SG&A is mainly due to lower shipment costs due to a reduction in volumes shipped.

    Other operating results amounted to a net gain of $81 million in the fourth quarter of 2024, compared to a gain of $11 million in the previous quarter and a $5 million loss in the fourth quarter of 2023. The fourth quarter of 2024 includes a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Financial results amounted to a gain of $48 million in the fourth quarter of 2024, compared to a gain of $48 million in the previous quarter and a gain of $93 million in the fourth quarter of 2023. Financial result of the quarter is mainly attributable to a $42 million net finance income from the net return of our portfolio investments.

    Equity in earnings of non-consolidated companies generated a gain of $35 million in the fourth quarter of 2024, compared to a gain of $8 million in the previous quarter and a gain of $57 million in the fourth quarter of 2023. These results are mainly derived from our participation in Ternium (NYSE:TX). During the fourth quarter of 2024 the result from Ternium´s investment includes a $43 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Income tax charge amounted to $123 million in the fourth quarter of 2024, compared to $134 million in the previous quarter and $177 million in the fourth quarter of 2023.

    Cash Flow and Liquidity of 2024 Fourth Quarter

    Net cash generated by operating activities during the fourth quarter of 2024 was $492 million, compared to $552 million in the previous quarter and $0.8 billion in the fourth quarter of 2023. During the fourth quarter of 2024 cash generated by operating activities includes a net working capital increase of $37 million.

    With capital expenditures of $182 million, our free cash flow amounted to $310 million during the quarter. Following a dividend payment of $299 million and share buybacks of $454 million in the quarter, our net cash position amounted to $3.6 billion at December 31, 2024.

    Analysis of 2024 Annual Results

    The following table shows our net sales by business segment for the periods indicated below:

    Net sales ($ million) 12M 2024
    		 12M 2023
    		 Increase/(Decrease)
    Tubes 11,907 95% 14,185 95% (16%)
    Others 617 5% 684 5% (10%)
    Total 12,524   14,869   (16%)
               

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 12M 2024 12M 2023 Increase/(Decrease)
    Seamless 3,077 3,189 (4%)
    Welded 852 953 (11%)
    Total 3,928 4,141 (5%)
           

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 12M 2024 12M 2023 Increase/(Decrease)
    (Net sales – $ million)      
    North America 5,432 7,572 (28%)
    South America 2,294 3,067 (25%)
    Europe 1,143 1,055 8%
    Asia Pacific, Middle East and Africa 3,038 2,491 22%
    Total net sales ($ million) 11,907 14,185 (16%)
    Services performed on third party tubes ($ million) 484 165 193%
    Operating income ($ million) 2,305 4,183 (45%)
    Operating margin (% of sales) 19.4% 29.5%  
           

    Net sales of tubular products and services decreased 16% to $11,907 million in 2024, compared to $14,185 million in 2023 due to a 5% decrease in volumes and a 12% decrease in average selling prices, primarily reflecting a decline in market prices for our tubular products used in onshore drilling applications in the Americas, lower drilling activity in Mexico and Colombia, lower shipments for pipeline projects in Argentina and lower sales of mechanical pipes in Europe. On the other hand, sales in the Middle East reached a record level as Saudi Aramco replenished OCTG stocks and increased gas drilling activity.

    Operating results from tubular products and services amounted to a gain of $2,305 million in 2024 compared to a gain of $4,183 million in 2023. The decline in operating results is mainly due to the decline in average selling prices and the corresponding impact on sales and margins. Additionally, in 2024 our Tubes operating income includes a charge of $107 million from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas, included in other operating expenses.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 12M 2024 12M 2023 Increase/(Decrease)
    Net sales ($ million) 617 684 (10%)
    Operating income ($ million) 113 133 (15%)
    Operating margin (% of sales) 18.4% 19.5%  
           

    Net sales of other products and services decreased 10% to $617 million in 2024, compared to $684 million in 2023.

    Operating results from other products and services amounted to a gain of $113 million in 2024, compared to a gain of $133 million in 2023.

    Selling, general and administrative expenses, or SG&A, amounted to $1,905 million in 2024, representing 15.2% of sales, and $1,919 million in 2023, representing 12.9% of sales. SG&A expenses increased as a percentage of sales due to the 16% decline in revenues, mainly due to lower Tubes average selling prices and an increase of fixed costs.

    Other operating results amounted to a loss of $65 million in 2024, compared to a gain of $36 million in 2023. In 2024 we recorded a $107 million loss from provision for the ongoing litigation related to the acquisition of a participation in Usiminas. In 2023 other operating income includes a non-recurring gain of $33 million corresponding to the transfer of the awards related to the Company’s Venezuelan nationalized assets.

    Financial results amounted to a gain of $129 million in 2024, compared to a gain of $221 million in 2023. While net finance income increased due to a higher net financial position, net foreign exchange results decreased significantly in respect to the previous year.

    Equity in earnings of non-consolidated companies generated a gain of $9 million in 2024, compared to a gain of $95 million in 2023. These results were mainly derived from our equity investment in Ternium (NYSE:TX) and in 2024 were negatively affected by a $43 million loss from the provision for the ongoing litigation related to the acquisition of a participation in Usiminas on our Ternium investment.

    Income tax amounted to a charge of $480 million in 2024, compared to $675 million in 2023. The lower income tax charge mainly reflects the reduction in results at several subsidiaries.

    Cash Flow and Liquidity of 2024

    Net cash provided by operating activities in 2024 amounted to $2.9 billion (including a reduction in working capital of $287 million), compared to cash provided by operations of $4.4 billion (including a reduction in working capital of $182 million) in 2023.

    Capital expenditures amounted to $694 million in 2024, compared to $619 million in 2023. Free cash flow amounted to $2.2 billion in 2024, compared to $3.8 billion in 2023.

    Following dividend payments of $758 million and share buybacks of $1.4 billion during 2024, our net cash position amounted to $3.6 billion at December 31, 2024.

    Conference call

    Tenaris will hold a conference call to discuss the above reported results, on February 20, 2025, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.

    To listen to the conference please join through one of the following options:
    ir.tenaris.com/events-and-presentations or
    https://edge.media-server.com/mmc/p/p836i5mj 

    If you wish to participate in the Q&A session please register at the following link:

    https://register.vevent.com/register/BIb7ae4609ff564d95a338d90813a3c8cc 

    Please connect 10 minutes before the scheduled start time.

    A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations

    Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

    Consolidated Income Statement

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
             
    Net sales 2,845,226 3,414,930 12,523,934 14,868,860
    Cost of sales (1,922,263) (2,120,591) (8,135,489) (8,668,915)
    Gross profit 922,963 1,294,339 4,388,445 6,199,945
    Selling, general and administrative expenses (445,988) (470,542) (1,904,828) (1,919,307)
    Other operating income 18,483 1,468 60,650 53,043
    Other operating expenses 62,919 (6,302) (125,418) (17,273)
    Operating income 558,377 818,963 2,418,849 4,316,408
    Finance income 51,331 63,621 242,319 213,474
    Finance cost (8,928) (19,759) (61,212) (106,862)
    Other financial results 5,777 49,249 (52,051) 114,365
    Income before equity in earnings of non-consolidated companies and income tax 606,557 912,074 2,547,905 4,537,385
    Equity in earnings of non-consolidated companies 35,283 56,859 8,548 95,404
    Income before income tax 641,840 968,933 2,556,453 4,632,789
    Income tax (122,709) 176,848 (479,680) (674,956)
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
             
    Attributable to:        
    Shareholders’ equity 516,213 1,129,098 2,036,445 3,918,065
    Non-controlling interests 2,918 16,683 40,328 39,768
      519,131 1,145,781 2,076,773 3,957,833
             

    Consolidated Statement of Financial Position

    (all amounts in thousands of U.S. dollars) At December 31, 2024   At December 31, 2023
             
    ASSETS          
    Non-current assets          
    Property, plant and equipment, net 6,121,471     6,078,179  
    Intangible assets, net 1,357,749     1,377,110  
    Right-of-use assets, net 148,868     132,138  
    Investments in non-consolidated companies 1,543,657     1,608,804  
    Other investments 1,005,300     405,631  
    Deferred tax assets 831,298     789,615  
    Receivables, net 205,602 11,213,945   185,959 10,577,436
    Current assets          
    Inventories, net 3,709,942     3,921,097  
    Receivables and prepayments, net 179,614     181,368  
    Current tax assets 332,621     256,401  
    Contract assets 50,757     47,451  
    Trade receivables, net 1,907,507     2,480,889  
    Derivative financial instruments 7,484     9,801  
    Other investments 2,372,999     1,969,631  
    Cash and cash equivalents 675,256 9,236,180   1,637,821 10,504,459
    Total assets   20,450,125     21,081,895
    EQUITY          
    Shareholders’ equity   16,593,257     16,842,972
    Non-controlling interests   220,578     187,465
    Total equity   16,813,835     17,030,437
    LIABILITIES          
    Non-current liabilities          
    Borrowings 11,399     48,304  
    Lease liabilities 100,436     96,598  
    Derivative financial instruments –     255  
    Deferred tax liabilities 503,941     631,605  
    Other liabilities 301,751     271,268  
    Provisions 82,106 999,633   101,453 1,149,483
    Current liabilities          
    Borrowings 425,999     535,133  
    Lease liabilities 44,490     37,835  
    Derivative financial instruments 8,300     10,895  
    Current tax liabilities 366,292     488,277  
    Other liabilities 585,775     422,645  
    Provisions 119,344     35,959  
    Customer advances 206,196     263,664  
    Trade payables 880,261 2,636,657   1,107,567 2,901,975
    Total liabilities   3,636,290     4,051,458
    Total equity and liabilities   20,450,125     21,081,895
               

    Consolidated Statement of Cash Flows

      Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
    (all amounts in thousands of U.S. dollars) 2024 2023 2024 2023
             
    Cash flows from operating activities        
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
    Adjustments for:        
    Depreciation and amortization 167,781 156,347 632,854 548,510
    Bargain purchase gain – – (2,211) (3,162)
    Income tax accruals less payments (160) (277,559) (222,510) (143,391)
    Equity in earnings of non-consolidated companies (35,283) (56,859) (8,548) (95,404)
    Interest accruals less payments, net 7,246 (8,554) (1,067) (53,480)
    Provision for the ongoing litigation related to the acquisition of participation in Usiminas (87,975) – 89,371 –
    Changes in provisions (19,808) (651) (25,155) 21,284
    Reclassification of currency translation adjustment reserve – (878) – (878)
    Changes in working capital (36,604) (65,697) 286,917 182,428
    Others, including net foreign exchange differences (22,100) (56,195) 39,794 (18,667)
    Net cash provided by operating activities 492,228 835,735 2,866,218 4,395,073
             
    Cash flows from investing activities        
    Capital expenditures (181,870) (166,820) (693,956) (619,445)
    Changes in advance to suppliers of property, plant and equipment 5,092 834 (10,391) 1,736
    Acquisition of subsidiaries, net of cash acquired – (161,238) 31,446 (265,657)
    Other investments at fair value – (1,126) – (1,126)
    Additions to associated companies – – – (22,661)
    Loan to joint ventures (1,414) (1,092) (5,551) (3,754)
    Proceeds from disposal of property, plant and equipment and intangible assets 9,646 3,858 28,963 12,881
    Dividends received from non-consolidated companies 20,674 25,268 73,810 68,781
    Changes in investments in securities 458,407 740,153 (821,478) (1,857,272)
    Net cash provided by (used in) investing activities 310,535 439,837 (1,397,157) (2,686,517)
             
    Cash flows from financing activities        
    Dividends paid (299,230) (235,128) (757,786) (636,511)
    Dividends paid to non-controlling interest in subsidiaries – – (5,862) (18,967)
    Changes in non-controlling interests 28 – 1,143 3,772
    Acquisition of treasury shares (454,462) (213,739) (1,439,589) (213,739)
    Payments of lease liabilities (17,248) (15,524) (68,574) (51,492)
    Proceeds from borrowings 344,222 365,455 1,870,666 1,723,677
    Repayments of borrowings (382,656) (406,774) (1,999,427) (1,931,747)
    Net cash used in financing activities (809,346) (505,711) (2,399,429) (1,125,007)
             
    (Decrease) increase in cash and cash equivalents (6,583) 769,861 (930,368) 583,549
             
    Movement in cash and cash equivalents        
    At the beginning of the year 681,306 864,012 1,616,597 1,091,433
    Effect of exchange rate changes (13,925) (17,276) (25,431) (58,385)
    (Decrease) increase in cash and cash equivalents (6,583) 769,861 (930,368) 583,549
    At December 31, 660,798 1,616,597 660,798 1,616,597
             

    Exhibit I – Alternative performance measures

    Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.

    EBITDA, Earnings before interest, tax, depreciation and amortization.

    EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

    EBITDA is calculated in the following manner:

    EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).

    EBITDA is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
    Income for the period 519,131 1,145,781 2,076,773 3,957,833
    Income tax charge / (credit) 122,709 (176,848) 479,680 674,956
    Equity in earnings of non-consolidated companies (35,283) (56,859) (8,548) (95,404)
    Financial results (48,180) (93,111) (129,056) (220,977)
    Depreciation and amortization 167,781 156,347 632,854 548,510
    EBITDA 726,158 975,310 3,051,703 4,864,918
             

    Free Cash Flow

    Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

    Free cash flow is calculated in the following manner:

    Free cash flow = Net cash (used in) provided by operating activities – Capital expenditures.

    Free cash flow is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended
    December 31,    		 Twelve-month period ended
    December 31,
      2024 2023 2024 2023
    Net cash provided by operating activities 492,228 835,735 2,866,218 4,395,073
    Capital expenditures (181,870) (166,820) (693,956) (619,445)
    Free cash flow 310,358 668,915 2,172,262 3,775,628
             

    Net Cash / (Debt)

    This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

    Net cash/ debt is calculated in the following manner:

    Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments – Borrowings (Current and Non-Current).

    Net cash/debt is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) At December 31,
      2024 2023
    Cash and cash equivalents 675,256 1,637,821
    Other current investments 2,372,999 1,969,631
    Non-current investments 998,251 398,220
    Current borrowings (425,999) (535,133)
    Non-current borrowings (11,399) (48,304)
    Net cash / (debt) 3,609,108 3,422,235
         

    Operating working capital days

    Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.

    Operating working capital days is calculated in the following manner:

    Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365.

    Operating working capital days is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended December 31,
      2024 2023
    Inventories 3,709,942 3,921,097
    Trade receivables 1,907,507 2,480,889
    Customer advances (206,196) (263,664)
    Trade payables (880,261) (1,107,567)
    Operating working capital 4,530,992 5,030,755
    Annualized quarterly sales 11,380,904 13,659,720
    Operating working capital 145 134
         

    Giovanni Sardagna        
    Tenaris
    1-888-300-5432
    www.tenaris.com

    The MIL Network –

  • MIL-OSI: Ansys Announces Q4 and FY 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    / Q4 2024 Results

    • Revenue of $882.2 million
    • GAAP diluted earnings per share of $3.21 and non-GAAP diluted earnings per share of $4.44
    • GAAP operating profit margin of 40.3% and non-GAAP operating profit margin of 53.3%
    • Operating cash flows of $258.0 million and unlevered operating cash flows of $266.8 million
    • Annual contract value (ACV) of $1,094.6 million

    /FY 2024 Results

    • Revenue of $2,544.8 million
    • GAAP diluted earnings per share of $6.55 and non-GAAP diluted earnings per share of $10.91
    • GAAP operating profit margin of 28.2% and non-GAAP operating profit margin of 45.7%
    • Operating cash flows of $795.7 million and unlevered operating cash flows of $834.6 million
    • ACV of $2,563.0 million
    • Deferred revenue and backlog of $1,718.3 million on December 31, 2024

    PITTSBURGH, Feb. 19, 2025 (GLOBE NEWSWIRE) — ANSYS, Inc. (NASDAQ: ANSS), today reported fourth quarter 2024 revenue of $882.2 million, an increase of 10% in reported currency, or 11% in constant currency, when compared to the fourth quarter of 2023. For FY 2024, revenue growth was 12% in reported currency, or 13% in constant currency, when compared to FY 2023. For the fourth quarter of 2024, the Company reported diluted earnings per share of $3.21 and $4.44 on a GAAP and non-GAAP basis, respectively, compared to $3.14 and $3.94 on a GAAP and non-GAAP basis, respectively, for the fourth quarter of 2023. For FY 2024, the Company reported diluted earnings per share of $6.55 and $10.91 on a GAAP and non-GAAP basis, respectively, compared to $5.73 and $8.80 on a GAAP and non-GAAP basis, respectively, for FY 2023. Additionally, the Company reported fourth quarter and FY 2024 ACV growth of 15% and 11% in reported currency, respectively, or 16% and 13% in constant currency, respectively, when compared to the fourth quarter and FY 2023. Fourth quarter 2024 ACV of $1.1 billion contributed 43% of the full year 2024 ACV while Q1, Q2 and Q3 each contributed 16%, 20% and 21%, respectively. The Company expects double-digit FY 2025 ACV growth.

    As previously announced, on January 15, 2024, Ansys entered into a definitive agreement with Synopsys, Inc. (“Synopsys”) under which Synopsys will acquire Ansys. As previously announced by Synopsys, Ansys and Synopsys have received conditional clearance from the European Commission. The U.K. Competition and Markets Authority provisionally accepted our remedies towards a transaction approval in Phase 1. The State Administration for Market Regulation of the People’s Republic of China has officially accepted our filing, and its review of the proposed transaction is in process. We continue to work with the regulators in other relevant jurisdictions to conclude their reviews. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. As previously announced, in light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.

    The non-GAAP financial results highlighted represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures can be found later in this release.
     

    / Summary of Financial Results

    Ansys’ fourth quarter and fiscal year (FY) 2024 and 2023 financial results are presented below. The 2024 and 2023 non-GAAP results exclude the income statement effects of stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.

    Our results are as follows:

      GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    Revenue $ 882,174     $ 805,108     9.6 %   $ 2,544,809     $ 2,269,949     12.1 %
    Net income $ 282,688     $ 274,762     2.9 %   $ 575,692     $ 500,412     15.0 %
    Diluted earnings per share $ 3.21     $ 3.14     2.2 %   $ 6.55     $ 5.73     14.3 %
    Gross margin   91.8 %     91.3 %         89.0 %     88.0 %    
    Operating profit margin   40.3 %     41.4 %         28.2 %     27.6 %    
    Effective tax rate   21.3 %     15.4 %         19.8 %     15.5 %    
                                           
      Non-GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    Net income $ 391,044     $ 345,317     13.2 %   $ 959,252     $ 769,308     24.7 %
    Diluted earnings per share $ 4.44     $ 3.94     12.7 %   $ 10.91     $ 8.80     24.0 %
    Gross margin   94.6 %     94.3 %         93.1 %     92.2 %    
    Operating profit margin   53.3 %     53.0 %         45.7 %     42.6 %    
    Effective tax rate   17.5 %     17.5 %         17.5 %     17.5 %    
                                           
      Other Metrics
    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD
    2023    		   % Change   FY
    2024    		   FY
    2023    		   % Change
    ACV $   1,094,552   $   955,161   14.6 %   $ 2,563,029   $ 2,300,466   11.4 %
    Operating cash flows $   257,973   $   232,722   10.9 %   $    795,740   $    717,122   11.0 %
    Unlevered operating cash flows $   266,777   $   242,848   9.9 %   $    834,582   $    755,129   10.5 %
                                       

    / Key Long-Term Metrics

    The Company’s long-term outlook covering the years 2022 through 2025 provided at the 2022 Investor Update has been suspended given the pending transaction with Synopsys. Below is a summary of key metrics covering the years 2022 through 2024.

    • Consistent double-digit ACV growth with a 2022 through 2024 CAGR of 12.3% at actual exchange rates and 13.0% at 2022 exchange rates.
    • Unlevered operating cash flows grew faster than ACV with a 2022 through 2024 CAGR of 13.5%.
    • With FY 2024 unlevered operating cash flows of $834.6 million, cumulative 3-year unlevered operating cash flows (FY 2022 to 2024) are $2.2 billion.
    • Note: 2024 unlevered operating cash flows includes $28.2 million of cash outflows primarily associated with the pending transaction with Synopsys.
    Supplemental Financial Information

    / Annual Contract Value

    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023    		   % Change   % Change in
    Constant Currency
    ACV $    1,094,552   $      1,110,711   $        955,161   14.6 %   16.3 %
                       
    (in thousands, except percentages) FY
    2024    		   FY 2024 in
    Constant Currency    		   FY
    2023    		   % Change   % Change in
    Constant Currency
    ACV $    2,563,029   $      2,593,819   $    2,300,466   11.4 %   12.8 %
                                 

    *Subscription lease ACV includes the bundled arrangement of time-based licenses with related maintenance.
    **Perpetual and service ACV includes perpetual licenses, with related maintenance, and services.

    Recurring ACV includes both subscription lease ACV and all maintenance ACV (including maintenance from perpetual licenses). It excludes perpetual license ACV and service ACV.

      

    / Revenue

    (in thousands, except percentages) Q4 QTD
    2024    		   Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023    		   % Change   % Change in
    Constant Currency
    Revenue $        882,174   $         893,996   $        805,108   9.6 %   11.0 %
                       
    (in thousands, except percentages) FY
    2024    		   FY 2024 in
    Constant Currency    		   FY
    2023    		   % Change   % Change in
    Constant Currency
    Revenue $    2,544,809   $     2,570,207   $    2,269,949   12.1 %   13.2 %
                                 
    REVENUE BY LICENSE TYPE
                           
    (in thousands, except percentages) Q4 QTD
    2024    		   % of Total   Q4 QTD
    2023    		   % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        441,120   50.0 %   $        399,556   49.6 %   10.4 %   12.1 %
    Perpetual            102,295   11.6 %              102,721   12.8 %   (0.4)%   1.7 %
    Maintenance1            319,381   36.2 %              283,130   35.2 %   12.8 %   13.8 %
    Service              19,378   2.2 %                19,701   2.4 %   (1.6)%   (1.2)%
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024    		   % of Total   FY
    2023    		   % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        948,831   37.3 %   $        786,050   34.6 %   20.7 %   22.1 %
    Perpetual            315,085   12.4 %              302,698   13.3 %   4.1 %   5.1 %
    Maintenance1         1,209,217   47.5 %           1,103,523   48.6 %   9.6 %   10.6 %
    Service              71,676   2.8 %                77,678   3.4 %   (7.7)%   (7.4)%
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   

    1Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.

    REVENUE BY GEOGRAPHY
                           
    (in thousands, except percentages) Q4 QTD
    2024    		   % of Total   Q4 QTD
    2023    		   % of Total   % Change   % Change in Constant Currency
    Americas $        457,752   51.9 %   $        410,681   51.0 %   11.5 %   11.5 %
                           
    Germany              98,527   11.2 %                81,828   10.2 %   20.4 %   24.2 %
    Other EMEA            170,541   19.3 %              155,023   19.3 %   10.0 %   12.2 %
    EMEA            269,068   30.5 %              236,851   29.4 %   13.6 %   16.3 %
                           
    Japan              52,294   5.9 %                61,243   7.6 %   (14.6)%   (11.1)%
    Other Asia-Pacific            103,060   11.7 %                96,333   12.0 %   7.0 %   10.1 %
    Asia-Pacific            155,354   17.6 %              157,576   19.6 %   (1.4)%   1.8 %
                           
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024    		   % of Total   FY
    2023    		   % of Total   % Change   % Change in Constant Currency
    Americas $    1,297,367   51.0 %   $    1,106,242   48.7 %   17.3 %   17.3 %
                           
    Germany            209,714   8.2 %              199,068   8.8 %   5.3 %   6.6 %
    Other EMEA            445,791   17.5 %              406,719   17.9 %   9.6 %   9.8 %
    EMEA            655,505   25.8 %              605,787   26.7 %   8.2 %   8.8 %
                           
    Japan            184,547   7.3 %              203,013   8.9 %   (9.1)%   (2.1)%
    Other Asia-Pacific            407,390   16.0 %              354,907   15.6 %   14.8 %   16.9 %
    Asia-Pacific            591,937   23.3 %              557,920   24.6 %   6.1 %   10.0 %
                           
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   
    REVENUE BY CHANNEL
                   
      Q4 QTD
    2024    		   Q4 QTD
    2023    		   FY
    2024    		   FY
    2023
    Direct revenue, as a percentage of total revenue 79.7 %   74.5 %   75.2 %   73.9 %
    Indirect revenue, as a percentage of total revenue 20.3 %   25.5 %   24.8 %   26.1 %
                           

    / Deferred Revenue and Backlog

    (in thousands) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Current Deferred Revenue $            504,527   $            427,188   $            457,514   $            349,668
    Current Backlog                524,617                  475,604                  439,879                  424,547
    Total Current Deferred Revenue and Backlog            1,029,144                  902,792                  897,393                  774,215
                   
    Long-Term Deferred Revenue                  31,778                    24,150                    22,240                    20,765
    Long-Term Backlog                657,345                  536,855                  552,951                  410,697
    Total Long-Term Deferred Revenue and Backlog                689,123                  561,005                  575,191                  431,462
                   
    Total Deferred Revenue and Backlog $        1,718,267   $        1,463,797   $        1,472,584   $        1,205,677
                           

    / Currency

    The fourth quarter and FY 2024 revenue, operating income, ACV and deferred revenue and backlog, as compared to the fourth quarter and FY 2023, were impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. The currency fluctuation impacts on revenue, GAAP and non-GAAP operating income, ACV, and deferred revenue and backlog based on 2023 exchange rates are reflected in the tables below. Amounts in brackets indicate an adverse impact from currency fluctuations.

    (in thousands) Q4 QTD
    2024    		   FY
    2024
    Revenue $       (11,822 )   $       (25,398 )
    GAAP operating income $          (9,057 )   $       (19,588 )
    Non-GAAP operating income $          (9,076 )   $       (19,335 )
    ACV $       (16,159 )   $       (30,790 )
    Deferred revenue and backlog $       (38,306 )   $       (40,993 )
                   

    The most meaningful currency impacts are typically attributable to U.S. Dollar exchange rate changes against the Euro and Japanese Yen. Historical exchange rates are reflected in the charts below.

      Period-End Exchange Rates
    As of EUR/USD   USD/JPY
    December 31, 2024                    1.04                       157
    December 31, 2023                    1.10                       141
    December 31, 2022                    1.07                       131
           
      Average Exchange Rates
    Three Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.07                       153
    December 31, 2023                    1.08                       148
           
      Average Exchange Rates
    Twelve Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.08                       151
    December 31, 2023                    1.08                       140
           

    / GAAP Financial Statements

    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands) December 31, 2024   December 31, 2023
    ASSETS:      
    Cash & short-term investments $                      1,497,517   $                          860,390
    Accounts receivable, net                          1,022,850                                864,526
    Goodwill                          3,778,128                             3,805,874
    Other intangibles, net                              716,244                                835,417
    Other assets                          1,036,692                                956,668
    Total assets $                      8,051,431   $                      7,322,875
    LIABILITIES & STOCKHOLDERS’ EQUITY:      
    Current deferred revenue $                          504,527   $                          457,514
    Long-term debt                              754,208                                753,891
    Other liabilities                              706,256                                721,106
    Stockholders’ equity                          6,086,440                             5,390,364
    Total liabilities & stockholders’ equity $                      8,051,431   $                      7,322,875
               
    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Income
    (Unaudited)
      Three Months Ended   Twelve Months Ended
    (in thousands, except per share data) December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Revenue:              
    Software licenses $                   543,415     $                   502,277     $               1,263,916     $           1,088,748  
    Maintenance and service                       338,759                           302,831                        1,280,893                   1,181,201  
    Total revenue                       882,174                           805,108                        2,544,809                   2,269,949  
    Cost of sales:              
    Software licenses                         12,947                             10,909                             45,367                         40,004  
    Amortization                         21,801                             20,586                             88,560                         80,990  
    Maintenance and service                         37,940                             38,554                           145,892                       150,304  
    Total cost of sales                         72,688                             70,049                           279,819                       271,298  
    Gross profit                       809,486                           735,059                        2,264,990                   1,998,651  
    Operating expenses:              
    Selling, general and administrative                       314,009                           269,857                           995,340                       855,135  
    Research and development                       134,259                           126,288                           528,014                       494,869  
    Amortization                            5,623                                5,914                             23,748                         22,512  
    Total operating expenses                       453,891                           402,059                        1,547,102                   1,372,516  
    Operating income                       355,595                           333,000                           717,888                       626,135  
    Interest income                         14,636                                7,199                             51,131                         19,588  
    Interest expense                        (10,924 )                          (12,551 )                          (47,849 )                     (47,145 )
    Other expense, net                               (14 )                            (2,876 )                            (3,132 )                       (6,440 )
    Income before income tax provision                       359,293                           324,772                           718,038                       592,138  
    Income tax provision                         76,605                             50,010                           142,346                         91,726  
    Net income $                   282,688     $                   274,762     $                   575,692     $              500,412  
    Earnings per share – basic:              
    Earnings per share $                          3.23     $                          3.16     $                          6.59     $                     5.76  
    Weighted average shares                         87,455                             86,888                             87,313                         86,833  
    Earnings per share – diluted:              
    Earnings per share $                          3.21     $                          3.14     $                          6.55     $                     5.73  
    Weighted average shares                         88,137                             87,541                             87,895                         87,386  
                                   

    / Glossary of Terms

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

    • the annualized value of maintenance and subscription lease contracts with start dates or anniversary dates during the period, plus
    • the value of perpetual license contracts with start dates during the period, plus
    • the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
    • the value of work performed during the period on fixed-deliverable services contracts.

    When we refer to the anniversary dates in the definition of ACV above, we are referencing the date of the beginning of the next twelve-month period in a contractually committed multi-year contract. If a contract is three years in duration, with a start date of July 1, 2024, the anniversary dates would be July 1, 2025 and July 1, 2026. We label these anniversary dates as they are contractually committed. While this contract would be up for renewal on July 1, 2027, our ACV performance metric does not assume any contract renewals.

    Example 1: For purposes of calculating ACV, a $100,000 subscription lease contract or a $100,000 maintenance contract with a term of July 1, 2024 – June 30, 2025, would each contribute $100,000 to ACV for fiscal year 2024 with no contribution to ACV for fiscal year 2025.

    Example 2: For purposes of calculating ACV, a $300,000 subscription lease contract or a $300,000 maintenance contract with a term of July 1, 2024 – June 30, 2027, would each contribute $100,000 to ACV in each of fiscal years 2024, 2025 and 2026. There would be no contribution to ACV for fiscal year 2027 as each period captures the full annual value upon the anniversary date.

    Example 3: A perpetual license valued at $200,000 with a contract start date of March 1, 2024 would contribute $200,000 to ACV in fiscal year 2024.

    Backlog: Deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period.

    Deferred Revenue: Billings made or payments received in advance of revenue recognition.

    Subscription Lease or Time-Based License: A license of a stated product of our software that is granted to a customer for use over a specified time period, which can be months or years in length. In addition to the use of the software, the customer is provided with access to maintenance (unspecified version upgrades and technical support) without additional charge. The revenue related to these contracts is recognized ratably over the contract period for the maintenance portion and up front for the license portion.

    Perpetual / Paid-Up License: A license of a stated product and version of our software that is granted to a customer for use in perpetuity. The revenue related to this type of license is recognized up front.

    Maintenance: A contract, typically one year in duration, that is purchased by the owner of a perpetual license and that provides access to unspecified version upgrades and technical support during the duration of the contract. The revenue from these contracts is recognized ratably over the contract period.

    / Reconciliations of GAAP to Non-GAAP Measures (Unaudited)

      Three Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      809,486   91.8 %   $      355,595   40.3 %   $    282,688     $        3.21  
    Stock-based compensation expense               3,635   0.4 %              73,016   8.2 %             73,016                 0.83  
    Excess payroll taxes related to stock-based awards                     39   — %                1,272   0.2 %               1,272                 0.01  
    Amortization of intangible assets from acquisitions             21,801   2.4 %              27,424   3.1 %             27,424                 0.31  
    Expenses related to business combinations                     —   — %              12,988   1.5 %             12,988                 0.15  
    Adjustment for income tax effect                     —   — %                      —   — %             (6,344 )             (0.07 )
    Total non-GAAP $      834,961   94.6 %   $      470,295   53.3 %   $    391,044     $        4.44  
                                           

    1 Diluted weighted average shares were 88,137.

      Three Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      735,059   91.3 %   $     333,000   41.4 %   $    274,762     $        3.14  
    Stock-based compensation expense               3,413   0.4 %              63,358   7.9 %             63,358                 0.73  
    Excess payroll taxes related to stock-based awards                       4   — %                   271   — %                  271                    —  
    Amortization of intangible assets from acquisitions             20,586   2.6 %              26,500   3.3 %             26,500                 0.30  
    Expenses related to business combinations                     —   — %                3,664   0.4 %               3,664                 0.04  
    Adjustment for income tax effect                     —   — %                      —   — %           (23,238 )             (0.27 )
    Total non-GAAP $      759,062   94.3 %   $     426,793   53.0 %   $    345,317     $        3.94  
                                           

    1 Diluted weighted average shares were 87,541.

      Twelve Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   2,264,990   89.0 %   $     717,888   28.2 %   $    575,692     $        6.55  
    Stock-based compensation expense             14,313   0.6 %           270,900   10.7 %           270,900                 3.08  
    Excess payroll taxes related to stock-based awards                  506   — %                8,643   0.3 %               8,643                 0.10  
    Amortization of intangible assets from acquisitions             88,560   3.5 %           112,308   4.4 %           112,308                 1.28  
    Expenses related to business combinations                     —   — %             52,841   2.1 %             52,841                 0.60  
    Adjustment for income tax effect                     —   — %                      —   — %           (61,132 )             (0.70 )
    Total non-GAAP $   2,368,369   93.1 %   $ 1,162,580   45.7 %   $    959,252     $      10.91  
                                           

    1 Diluted weighted average shares were 87,895.

      Twelve Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   1,998,651   88.0 %   $     626,135   27.6 %   $    500,412     $        5.73  
    Stock-based compensation expense             13,337   0.6 %           221,891   9.9 %           221,891                 2.54  
    Excess payroll taxes related to stock-based awards                  307   0.1 %                5,541   0.2 %               5,541                 0.06  
    Amortization of intangible assets from acquisitions             80,990   3.5 %           103,502   4.5 %           103,502                 1.18  
    Expenses related to business combinations                     —   — %                9,422   0.4 %               9,422                 0.11  
    Adjustment for income tax effect                     —   — %                      —   — %           (71,460 )             (0.82 )
    Total non-GAAP $   2,093,285   92.2 %   $     966,491   42.6 %   $    769,308     $        8.80  
                                           

    1 Diluted weighted average shares were 87,386.

      Three Months Ended   Twelve Months Ended
    (in thousands) December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023    		   December 31,
    2022
    Net cash provided by operating activities $            257,973     $            232,722     $            795,740     $            717,122     $            631,003  
    Cash paid for interest                  10,671                      12,274                      47,081                      46,069                      20,844  
    Tax benefit                   (1,867 )                     (2,148 )                     (8,239 )                     (8,062 )                     (3,752 )
    Unlevered operating cash flows $            266,777     $            242,848     $            834,582     $            755,129     $            648,095  
                                           

    / Use of Non-GAAP Measures

    We provide non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income, non-GAAP diluted earnings per share and unlevered operating cash flows as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to these financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure, as applicable.

    We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and employees. In addition, many financial analysts that follow us focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported, these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

    While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all our competitors and may not be directly comparable to similarly titled measures of our competitors due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

    The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:

    Amortization of intangible assets from acquisitions. We incur amortization of intangible assets, included in our GAAP presentation of amortization expense, related to various acquisitions we have made. We exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by us after the acquisition. Accordingly, we do not consider these expenses for purposes of evaluating our performance during the applicable time period after the acquisition, and we exclude such expenses when making decisions to allocate resources. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our past reports of financial results as we have historically reported these non-GAAP financial measures.

    Stock-based compensation expense. We incur expense related to stock-based compensation included in our GAAP presentation of cost of maintenance and service; research and development expense; and selling, general and administrative expense. We also incur excess payroll tax expense related to stock-based compensation, which is an additional non-GAAP adjustment. Although stock-based compensation is an expense and viewed as a form of compensation, we exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance. Specifically, we exclude stock-based compensation during our annual budgeting process and our quarterly and annual assessments of our performance. The annual budgeting process is the primary mechanism whereby we allocate resources to various initiatives and operational requirements. Additionally, the annual review by our Board of Directors during which it compares our historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of our senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, we record stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, we can review, on a period-to-period basis, each manager’s performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Expenses related to business combinations. We incur expenses for professional services rendered in connection with acquisitions and divestitures, which are included in our GAAP presentation of selling, general and administrative expense. We also incur other expenses directly related to business combinations, including compensation expenses and concurrent restructuring activities, such as employee severances and other exit costs. These costs are included in our GAAP presentation of selling, general and administrative and research and development expenses. We exclude these acquisition-related expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance, as we generally would not have otherwise incurred these expenses in the periods presented as a part of our operations. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Non-GAAP tax provision. We utilize a normalized non-GAAP annual effective tax rate (AETR) to calculate non-GAAP measures. This methodology provides better consistency across interim reporting periods by eliminating the effects of non-recurring items and aligning the non-GAAP tax rate with our expected geographic earnings mix. To project this rate, we analyzed our historic and projected non-GAAP earnings mix by geography along with other factors such as our current tax structure, recurring tax credits and incentives, and expected tax positions. On an annual basis we re-evaluate and update this rate for significant items that may materially affect our projections.

    Unlevered operating cash flows. We make cash payments for the interest incurred in connection with our debt financing which are included in our GAAP presentation of operating cash flows. We exclude this cash paid for interest, net of the associated tax benefit, for the purpose of calculating unlevered operating cash flows. Unlevered operating cash flow is a supplemental non-GAAP measure that we use to evaluate our core operating business. We believe this measure is useful to investors and management because it provides a measure of our cash generated through operating activities independent of the capital structure of the business.

    Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

    We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

    GAAP Reporting Measure Non-GAAP Reporting Measure
    Gross Profit Non-GAAP Gross Profit
    Gross Profit Margin Non-GAAP Gross Profit Margin
    Operating Income Non-GAAP Operating Income
    Operating Profit Margin Non-GAAP Operating Profit Margin
    Net Income Non-GAAP Net Income
    Diluted Earnings Per Share Non-GAAP Diluted Earnings Per Share
    Operating Cash Flows Unlevered Operating Cash Flows
       

    Constant currency. In addition to the non-GAAP financial measures detailed above, we use constant currency results for financial and operational decision-making and as a means to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations on the reported results. To present this information, the 2024 period results for entities whose functional currency is a currency other than the U.S. Dollar were converted to U.S. Dollars at rates that were in effect for the 2023 comparable period, rather than the actual exchange rates in effect for 2024. Constant currency growth rates are calculated by adjusting the 2024 period reported amounts by the 2024 currency fluctuation impacts and comparing the adjusted amounts to the 2023 comparable period reported amounts. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our reported results to our past reports of financial results without the effects of foreign currency fluctuations.

    / About Ansys

    Our Mission: Powering Innovation that Drives Human Advancement™

    When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.

    / Forward-Looking Information

    This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are statements that provide current expectations or forecasts of future events based on certain assumptions. Forward-looking statements are subject to risks, uncertainties, and factors relating to our business which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.

    Forward-looking statements use words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,” “should,” “target,” or other words of similar meaning. Forward-looking statements include those about market opportunity, including our total addressable market, the proposed transaction with Synopsys, including the expected date of closing and the potential benefits thereof, and other aspects of future operations. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

    The risks associated with the following, among others, could cause actual results to differ materially from those described in any forward-looking statements:

    • our ability to complete the proposed transaction with Synopsys on anticipated terms and timing, including completing the associated divestiture of our PowerArtist RTL business and obtaining regulatory approvals, and other conditions related to the completion of the transaction with Synopsys;
       
    • the realization of the anticipated benefits of the proposed transaction with Synopsys, including potential disruptions to our and Synopsys’ businesses and commercial relationships with others resulting from the announcement, pendency, or completion of the proposed transaction and uncertainty as to the long-term value of Synopsys’ common stock;
       
    • restrictions on our operations during the pendency of the proposed transaction with Synopsys that could impact our ability to pursue certain business opportunities or strategic transactions, including tuck-in M&A;
       
    • adverse conditions in the macroeconomic environment, including inflation, recessionary conditions and volatility in equity and foreign exchange markets;
       
    • political, economic and regulatory uncertainties in the countries and regions in which we operate;
       
    • impacts from tariffs, trade sanctions, export controls or other trade barriers, including export control restrictions and licensing requirements for exports to China;
       
    • impacts resulting from the conflict between Israel and Hamas and other countries and groups in the Middle East, including impacts from changes to diplomatic relations and trade policy between the United States and other countries resulting from the conflict;
       
    • impacts from changes to diplomatic relations and trade policy between the United States and Russia or between the United States and other countries that may support Russia or take similar actions due to the conflict between Russia and Ukraine;
       
    • constrained credit and liquidity due to disruptions in the global economy and financial markets, which may limit or delay availability of credit under our existing or new credit facilities, or which may limit our ability to obtain credit or financing on acceptable terms or at all;
       
    • our ability to timely recruit and retain key personnel in a highly competitive labor market, including potential financial impacts of wage inflation and potential impacts due to the proposed transaction with Synopsys;
       
    • our ability to protect our proprietary technology; cybersecurity threats or other security breaches, including in relation to breaches occurring through our products and an increased level of our activity that is occurring from remote global off-site locations; and disclosure or misuse of employee or customer data whether as a result of a cybersecurity incident or otherwise;
       
    • volatility in our revenue due to the timing, duration and value of multi-year subscription lease contracts; and our reliance on high renewal rates for annual subscription lease and maintenance contracts;
       
    • declines in our customers’ businesses resulting in adverse changes in procurement patterns; disruptions in accounts receivable and cash flow due to customers’ liquidity challenges and commercial deterioration; uncertainties regarding demand for our products and services in the future and our customers’ acceptance of new products; delays or declines in anticipated sales due to reduced or altered sales and marketing interactions with customers; and potential variations in our sales forecast compared to actual sales;
       
    • our ability and our channel partners’ ability to comply with laws and regulations in relevant jurisdictions; and the outcome of contingencies, including legal proceedings, government or regulatory investigations and tax audit cases;
       
    • uncertainty regarding income tax estimates in the jurisdictions in which we operate; and the effect of changes in tax laws and regulations in the jurisdictions in which we operate;
       
    • the quality of our products, including the strength of features, functionality and integrated multiphysics capabilities; our ability to develop and market new products to address the industry’s rapidly changing technology, including the use of artificial intelligence and machine learning in our products as well as the products of our competitors; failures or errors in our products and services; and increased pricing pressure as a result of the competitive environment in which we operate;
       
    • investments in complementary companies, products, services and technologies; our ability to complete and successfully integrate our acquisitions and realize the financial and business benefits of such transactions; and the impact indebtedness incurred in connection with any acquisition could have on our operations;
       
    • investments in global sales and marketing organizations and global business infrastructure, and dependence on our channel partners for the distribution of our products;
       
    • current and potential future impacts of any global health crisis, natural disaster or catastrophe; the actions taken to address these events by our customers, our suppliers, and regulatory authorities; the resulting effects on our business, the global economy and our consolidated financial statements; and other public health and safety risks and related government actions or mandates;
       
    • operational disruptions generally or specifically in connection with transitions to and from remote work environments; and the failure of our technological infrastructure or those of the service providers upon whom we rely including for infrastructure and cloud services;
       
    • our intention to repatriate previously taxed earnings and to reinvest all other earnings of our non-U.S. subsidiaries;
       
    • plans for future capital spending; the extent of corporate benefits from such spending including with respect to customer relationship management; and higher than anticipated costs for research and development or a slowdown in our research and development activities;
       
    • our ability to execute on our strategies related to environmental, social, and governance matters, and meet evolving and varied expectations, including as a result of evolving regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, and changes in carbon markets; and
       
    • other risks and uncertainties described in our reports filed from time to time with the Securities and Exchange Commission (the SEC).  

    Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

    Visit https://investors.ansys.com for more information.

    ANSS-F

    Photos accompanying this announcement are available at
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    https://www.globenewswire.com/NewsRoom/AttachmentNg/463dbc35-5aba-4a20-b2cb-2f5ed540482e

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

    The MIL Network –

  • MIL-Evening Report: Two in five scientists report harassment and intimidation. Often, the perpetrators are inside the institution

    Source: The Conversation (Au and NZ) – By Robert Hales, Director, Centre for Sustainable Enterprise, Griffith University

    Roman Samborskyi/Shutterstock

    The goal of science is to uncover truths and create new knowledge. But this is not always welcome. Increasingly, scientific findings are being attacked or downplayed. And scientists themselves face intimidation or harassment.

    In our global study of more than 2,000 scientists across six areas of science, two-fifths (41%) of respondents had, as a result of their work, been harassed or intimidated at least once over a five-year period.

    Intimidation efforts included online abuse, physical threats, and threats to budgets or employment. Harassment, while personal, could be meted out by superiors, colleagues or outsiders. Some scientists felt their leaders had thrown them under the bus to protect the institution’s reputation.

    Who’s doing the intimidation? Strikingly, a majority of cases of intimidation and harassment actually came from inside the institution for most fields. That is, it was perpetrated by senior colleagues or managers. But for climate scientists, most intimidation efforts came from outside.

    Intimidation of scientists doesn’t happen in a vacuum. In recent years, there has been a rise in populist leaders who pour scorn on “elites” and evidence. Scientific issues are increasingly politicised. Disinformation is rampant. This atmosphere adds to the pressure faced by scientists, especially those working in politically sensitive areas such as climate science or COVID.

    Harassment and intimidation can silence or isolate scientists.
    Hayk_Shalunts/Shutterstock

    What did we find?

    We used an online database of scientists to find and contact experts publishing in six fields: climate science, medical health, humanities and social science, food and plant science, astronomy, and other STEM areas.

    More than 2,000 responded to our survey on whether they had experienced various types of intimidation or harassment. We asked respondents for more detail on the perpetrators, what triggered the incident, and what effect it had on them.

    Many respondents had a clear view as to what the intimidation or harassment was meant to do. The motivations of perpetrators varied greatly. But the most common reasons were to damage their reputation, to stop them from publishing certain types of research, or to “put me in my place”.

    Specific fields of science were more prone to harassment and intimidation – in particular climate science, and humanities and social science.

    Among those scientists who had been intimidated, climate scientists reported online abuse three times more often than astronomers. Climate science is politically charged, because climate change is clearly linked to pollution from some of the world’s largest industries – oil, gas and coal. Astronomy is not. Half of the climate scientist respondents experiencing intimidation saw the bad behaviour as a way to discourage them from undertaking specific research and speaking about it.

    Researchers from humanities and social sciences faced similar levels of online abuse to climate scientists.

    When it came to personal harassment, there was a clear gender dimension. Among those who reported experiencing harassment, female scientists were more than four times more likely to report “unwelcome or inappropriate behaviour of a sexual nature” than their male counterparts. Women were affected almost twice as much as men by non-sexual forms of personal harassment.

    Our findings follow earlier research finding similar rates of intimidation. For instance, a 2021 survey of 321 scientists working on COVID-19 found 15% had received death threats and 22% received threats of sexual violence.

    Intimidation and harassment are damaging

    The consequences of intimidation are profound and far-reaching. Many scientists told us the experience had caused lasting damage, whether to wellbeing, career prospects or research activities.

    More than 40% of those affected said their career prospects had worsened following incidents of harassment. Just over a third (34%) reported a decline in their desire to work in science. Scientists who experienced intimidation often cut back their collaboration with colleagues (35%), leaving them more isolated.

    Many of our respondents described flow-on effects such as decreased access to funding (35% of respondents) and less public communication from their institution about their work (23%).

    Scientists targeted with multiple types of harassment reported very damaging effects, from difficulty finding their next job to poor mental health.

    Intimidation slows progress

    Intimidation and harassment have a chilling effect on science. This, in turn, could hinder progress on crucial issues such as climate change, public health and technological advancements.

    The disproportionate impact on women and researchers in politically sensitive fields threatens to undermine diversity and inclusivity in science.

    Without targeted interventions, women in science may continue to suffer disproportionate levels of harassment and intimidation. This will have long-term implications for gender diversity in scientific leadership and the direction of research in various fields.

    In the United States, the Trump administration’s withdrawals from the Paris climate agreement and the World Health Organization are likely to further embolden anti-science movements. Many American scientific institutions are engaged in anticipatory obedience of the Trump administration’s demands that diversity and anti-discrimination programs be abolished, or climate change stop being mentioned. Many even go beyond what is explicitly sought.

    Female scientists are targeted in different ways.
    PeopleImages.com – Yuri A/Shutterstock

    What can be done?

    Science and academia is often seen as a bastion of free inquiry and open discussion. One of our most surprising findings was how common intimidation was within scientific institutions.

    The key to beating intimidation is organisational support and clear strategies, not obedience. These include:

    • genuine commitment to institutional policies protecting scientists from both internal and external intimidation

    • formal, well-resourced support systems for researchers facing harassment or pressure (not the HR office)

    • programs to increase public understanding of the scientific process to build trust and resilience to misinformation

    • boosting international collaboration between scientists and policymakers to ensure resilience against country-specific efforts to undermine science

    • educating the public on the importance of scientific independence and of fostering respectful dialogue around contentious topics.

    As populist movements gain traction in many countries, scientists working on controversial issues will face heightened scrutiny – and potentially more intimidation.

    Climate science is likely to remain a particularly contested field. As the damage wrought by climate change becomes more and more apparent, it will get even more contentious.

    Over the last few centuries, science has produced breakthroughs in many areas. But the integrity of science is not guaranteed. Harassment and intimidation from both inside and outside institutions has a very real effect on scientists.

    The future of evidence-based decision-making and ability to tackle global challenges depends on fostering an environment where scientists can work free from fear and undue pressure.

    Robert Hale receives funding from the Australian Research Council.

    David Peetz undertook research over many years with occasional financial support from governments from both sides of politics, employers and unions. He has been and is involved in several Australian Research Council-funded projects, including this one.

    Ian Lowe was president of the Australian Conservation Foundation from 2004 to 2014.

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

    – ref. Two in five scientists report harassment and intimidation. Often, the perpetrators are inside the institution – https://theconversation.com/two-in-five-scientists-report-harassment-and-intimidation-often-the-perpetrators-are-inside-the-institution-248013

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: More people are asking generative AI questions about their health. But the wrong answer can be risky

    Source: The Conversation (Au and NZ) – By Julie Ayre, Post Doctoral Research Fellow, Sydney Health Literacy Lab, University of Sydney

    Shvets Production/Pexels

    More people are turning to generative artificial intelligence (AI) to help them in their daily and professional lives. ChatGPT is one of the most well-known and widely available generative AI tools. It gives tailored, plausible answers to any question for free.

    There is so much potential for generative AI tools to help people learn about their health. But the answers are not always correct. Relying solely on ChatGPT for health advice can be risky and cause unnecessary concern.

    Generative AI is still a relatively new technology, and is constantly changing. Our new study provides the first Australian data about who is using ChatGPT to answer health questions, for what purposes.

    The results can help tell people how to use this new technology for their health, and the new skills needed to use it safely – in other words, to build “AI health literacy”.

    Who uses ChatGPT for health? What do they ask?

    In June 2024 we asked a nationally representative sample of more than 2,000 Australians if they had used ChatGPT to answer health questions.

    One in ten (9.9%) had asked ChatGPT a health question in the first half of 2024.

    On average they reported that they “somewhat” trusted ChatGPT (3.1 out of 5).

    We also found the proportion of people using ChatGPT for health was higher for people who had low health literacy, were born in a non-English speaking country, or spoke another language at home.

    This suggests ChatGPT may be supporting people who find it hard to engage with traditional forms of health information in Australia.

    One in ten Australians asked ChatGPT a health question in the first half of last year.
    Kampus Productions/Pexels

    The most common questions that people asked ChatGPT related to:

    • learning about a health condition (48%)
    • finding out what symptoms mean (37%)
    • asking about actions (36%)
    • or understanding medical terms (35%).

    More than half (61%) had asked at least one question that would usually require clinical advice. We classified these questions as “riskier”. Asking ChatGPT what your symptoms mean can give you a rough idea, but cannot substitute clinical advice.

    People who were born in a non-English speaking country or who spoke another language at home were more likely to ask these types of questions.

    Why does this matter?

    The number of people using generative AI for health information is likely to grow. In our study, 39% of people who had not yet used ChatGPT for health would consider doing so in the next six months.

    The overall number of people using generative AI tools for health information is even higher if we consider other tools such as Google Gemini, Microsoft Copilot, and Meta AI.

    Notably, in our study we saw that people from culturally and linguistically diverse communities may be more likely to use ChatGPT for health information.

    If they were asking ChatGPT to translate health information, this adds another layer of complexity. Generative AI tools are generally less accurate in other languages.

    We need investment in services (whether human or machine) to ensure speaking another language is not a barrier to high quality health information.

    What does ‘AI health literacy’ look like?

    Generative AI is here to stay, presenting both opportunities and risks to people who use it for health information.

    On the one hand, this technology appeals to people who already face significant barriers accessing health care and health information. One of its key benefits is its ability to instantly provide health information that is easy to understand.

    A recent review of studies showed generative AI tools are increasingly capable of answering general health questions using plain language, although they were less accurate for complex health topics.

    This has clear benefits as most health information is written at a level that is too complex for the general population, including during the pandemic.

    On the other hand, people are turning to general-purpose AI tools for health advice. This is riskier for questions that require clinical judgment and a broader understanding of the patient.

    There have already been case studies showing the dangers of using general purpose AI tools to decide whether to go to hospital or not.

    Where else can you go for this information?

    We need to help people think carefully about the kinds of questions they’re asking AI tools, and connect them with appropriate services that can answer these riskier questions.

    Organisations such as HealthDirect provide a national free helpline where you can speak with a registered nurse about whether to go to hospital or see a doctor. HealthDirect also provides an online SymptomChecker tool to help you figure out your next steps.

    While many Australian health agencies are developing AI policies, most are focused on how health services and staff engage with this technology.

    We urgently need to equip our community with AI health literacy skills. This need will grow as more people use AI tools for health, and it will also change as the AI tools evolve.

    Julie Ayre receives funding from the National Health and Medical Research Council (APP2017278). The Health Literacy Editor is a research tool owned by the University of Sydney. It is sublicensed to Health Literacy Solutions PTY Ltd to enable wider public use. Julie Ayre (study author) is a co-director of Health Literacy Solutions PTY Ltd. She takes no personal income from Health Literacy Solutions PTY Ltd or the Health Literacy Editor.

    Kirsten McCaffery receives funding from the National Health and Medical Research Council (APP2016719). The Health Literacy Editor is a research tool owned by the University of Sydney. It is sub-licensed to Health Literacy Solutions PTY Ltd to enable wider public use. Kirsten McCaffery is a co-director of Health Literacy Solutions PTY Ltd. She takes no personal income from Health Literacy Solutions PTY Ltd or the Health Literacy Editor.

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

    – ref. More people are asking generative AI questions about their health. But the wrong answer can be risky – https://theconversation.com/more-people-are-asking-generative-ai-questions-about-their-health-but-the-wrong-answer-can-be-risky-249383

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Governor Newsom proposes $125 million in mortgage relief to benefit victims of recent natural disasters

    Source: US State of California 2

    Feb 19, 2025

    Survivors of the Park Fire, Franklin Fire, and the recent Palisades and Eaton fires would be eligible for direct mortgage relief

    What you need to know: Governor Newsom is proposing an over $125 million package that includes disaster mortgage relief for homeowners whose homes have been damaged or destroyed by natural disasters since 2023 and are at risk of foreclosure, as well as mortgage counseling services.

    LOS ANGELES — Governor Newsom today announced a new proposal to create an over $125 million mortgage relief program to assist homeowners whose homes were destroyed or severely damaged by recent natural disasters, placing them at risk of foreclosure. The proposal also includes funding to extend an existing counseling services program which would help affected homeowners navigate their recovery. The package would utilize existing mortgage settlement funding, and would not impact the proposed 2025-2026 budget. 

    “As survivors heal from the trauma of recent disasters, the threat of foreclosure should be the last thing on their minds. This disaster mortgage relief program would help lift this burden and give families more time to focus on recovery.”

    Governor Gavin Newsom

    The package will be administered by the California Housing Finance Agency (CalFHA) and includes over $100 million in direct mortgage assistance, with an additional $25 million to extend an existing program that provides mortgage counseling and serves survivors by offering guidance on FEMA disaster assistance and other related needs. The program will provide mortgage relief for homeowners at risk of foreclosure and whose property was destroyed or substantially damaged as a result of declared emergencies since January 1, 2023. The proposal will be considered at CalHFA’s next meeting on February 20. Survivors of natural disasters since 2023, including those affected by the Park Fire, Franklin Fire, and the recent Palisades and Eaton Fires, would be eligible for mortgage assistance. Once approved, the direct assistance program and eligibility criteria will be developed and announced in more detail.

    The Governor last month announced that five major lenders (Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo) and recently announced that there are now 420 state-chartered banks, credit unions, and mortgage lenders who have committed to offering impacted homeowners a 90-day forbearance of their mortgage payments, without reporting these payments to credit reporting agencies, and the opportunity for additional relief.

    Funding for the mortgage relief program comes from settlement funds California secured from big banks resolving allegations of misconduct during the mortgage crisis.

    This adds to the Governor’s work to provide tax and mortgage relief to those impacted by the Los Angeles area firestorms. California postponed the individual tax filing deadline to October 15 for Los Angeles County taxpayers. Additionally, the state extended the January 31, 2025, sales and use tax filing deadline for Los Angeles County taxpayers until April 30 — providing critical tax relief for businesses. Governor Newsom suspended penalties and interest on late property tax payments for a year, effectively extending the state property tax deadline. The Governor also worked with state– and federally-chartered banks that have committed to providing mortgage relief for survivors in certain zip codes.

    Historic recovery and rebuilding efforts — faster than ever before 

    As the Los Angeles community recovers from the firestorm disaster, Governor Newsom is removing barriers and helping survivors quickly by: 

    • Cutting red tape to help rebuild Los Angeles faster and stronger. Governor Newsom issued an executive order to streamline the rebuilding of homes and businesses destroyed — suspending permitting and review requirements under the California Environmental Quality Act (CEQA) and the California Coastal Act. The Governor also issued an executive order further cutting red tape by reiterating that permitting requirements under the California Coastal Act are suspended for rebuilding efforts and directing the Coastal Commission not to issue guidance or take any action that interferes with or conflicts with the Governor’s executive orders. The Governor also issued an executive order removing bureaucratic barriers, extending deadlines, and providing critical regulatory relief to help fire survivors rebuild, access essential services, and recover more quickly.
    • Fast-tracking temporary housing and protecting tenants. To help provide necessary shelter for those immediately impacted by the firestorms, the Governor issued an executive order to make it easier to streamline construction of accessory dwelling units, allow for more temporary trailers and other housing, and suspend fees for mobile home parks. Governor Newsom also issued an executive order that prohibits landlords in Los Angeles County from evicting tenants for sharing their rental with survivors displaced by the Los Angeles-area firestorms.

    • Mobilizing debris removal and cleanup. With an eye toward recovery, the Governor directed fast action on debris removal work and mitigating the potential for mudslides and flooding in areas burned. He also signed an executive order to allow expert federal hazmat crews to start cleaning up properties as a key step in getting people back to their properties safely. The Governor also issued an executive order to help mitigate risk of mudslides and flooding and protect communities by hastening efforts to remove debris, bolster flood defenses, and stabilize hillsides in affected areas. 

    • Safeguarding survivors from price gouging. Governor Newsom expanded restrictions to protect survivors from illegal price hikes on rent, hotel and motel costs, and building materials or construction. Report violations to the Office of the Attorney General here.

    • Directing immediate state relief. The Governor signed legislation providing over $2.5 billion to immediately support ongoing emergency response efforts and to jumpstart recovery efforts for Los Angeles. California quickly launched CA.gov/LAfires as a single hub of information and resources to support those impacted and bolsters in-person Disaster Recovery Centers. The Governor also launched LA Rises, a unified recovery initiative that brings together private sector leaders to support rebuilding efforts. Governor Newsom announced that individuals and families directly impacted by the recent fires living in certain zip codes may be eligible to receive Disaster CalFresh food benefits.

    • Getting kids back in the classroom. Governor Newsom signed an executive order to quickly assist displaced students in the Los Angeles area and bolster schools affected by the firestorms.

    • Protecting survivors from real estate speculators. The Governor issued an executive order to protect firestorm survivors from predatory land speculators making aggressive and unsolicited cash offers to purchase their property.

    • Helping businesses and workers get back on their feet. The Governor issued an executive order to support small businesses and workers, by providing relief to help businesses recover quickly by deferring annual licensing fees and waiving other requirements that may impose barriers to recovery.

    •  

    Press Releases, Recent News

    Recent news

    Feb 19, 2025

    News State continues raising awareness of dangerous drug  What you need to know: California is using a multifaceted approach to tackle illicit fentanyl, including seizing nearly $300 million of illicit fentanyl since 2023 and increasing public education in schools…

    Feb 14, 2025

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Melissa Stone, of Elk Grove, has been appointed Chief Deputy Director at the Department of Child Support Services. Stone has been Deputy Director of the Disability Insurance Branch at…

    Feb 14, 2025

    News What you need to know: California’s work to pre-deploy resources ahead of this week’s major storms paid off with successful rescue efforts and no major damage reported. SACRAMENTO — Governor Gavin Newsom today praised the proactive emergency response efforts that…

    Feb 19, 2025

    What you need to know: The passage of Proposition 1 by California voters adds rocket fuel to Governor Gavin Newsom’s transformational overhaul of the state’s behavioral health system. These reforms refocus existing funds to prioritize Californians with the most serious mental health and substance use issues, who are too often experiencing homelessness. They also fund more than 11,150 new behavioral health beds and supportive housing units and 26,700 outpatient treatment slots.

    Los Angeles, California – California took a major step forward in correcting the damage from 50 years of neglect to the state’s mental health system with the passage of Proposition 1. This historic measure — a signature priority of Governor Gavin Newsom — adds rocket fuel to California’s overhaul of the state’s behavioral health systems. It provides a full range of mental health and substance abuse care, with new accountability metrics to ensure local governments deliver for their communities.

    This is the biggest reform of the California mental health system in decades and will finally equip partners to deliver the results all Californians need and deserve. Treatment centers will prioritize mental health and substance use support in the community like never before. Now, it’s time to roll up our sleeves and begin implementing this critical reform – working closely with city and county leaders to ensure we see results.

    Governor Gavin Newsom

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    What they’re saying: 

    • Sacramento Mayor Darrell Steinberg, original author of the Mental Health Services Act: “Twenty years ago, I never could have dreamed that we would have the strong leadership we have today, committing billions and making courageous policy changes that question the conventional wisdom on mental health. Now, with the passage of Proposition 1. California is delivering on decades old promises to help people living with brain-based illnesses, to live better lives, to live independently and to live with dignity in our communities. This is a historic moment and the hard work is ahead of us.“
    • Senator Susan Eggman (D-Stockton), author of Senate Bill 326: “Today marks a day of hope for thousands of Californians who are struggling with mental illness – many of whom are living unhoused. I am tremendously grateful to my fellow Californian’s for passing this important measure.  And I am very appreciative of this Governor’s leadership to transform our behavioral health care system!”
    • Assemblymember Jacqui Irwin (D-Thousand Oaks), author of Assembly Bill 531: “This started as an audacious proposal to address the root cause of homelessness and today, Californians can be proud to know that they did the right thing by passing Proposition 1. Now, it’s time for all of us to get to work, and make sure these reforms are implemented and that we see results.”

    Bigger picture: Transforming the Mental Health Services Act into the Behavioral Health Services Act and building more community mental health treatment sites and supportive housing is the last main pillar of Governor Newsom’s Mental Health Movement – pulling together significant recent reforms like 988 crisis line, CalHOPE, CARE Court, conservatorship reform, CalAIM behavioral health expansion (including mobile crisis care and telehealth), Medi-Cal expansion to all low-income Californians, Children and Youth Behavioral Health Initiative (including expanding services in schools and on-line), Older Adult Behavioral Health Initiative, Veterans Mental Health Initiative, Behavioral Health Community Infrastructure Program, Behavioral Health Bridge Housing, Health Care Workforce for All and more.

    More details on next step here

    Press Releases, Recent News

    Recent news

    Feb 19, 2025

    News State continues raising awareness of dangerous drug  What you need to know: California is using a multifaceted approach to tackle illicit fentanyl, including seizing nearly $300 million of illicit fentanyl since 2023 and increasing public education in schools…

    Feb 14, 2025

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Melissa Stone, of Elk Grove, has been appointed Chief Deputy Director at the Department of Child Support Services. Stone has been Deputy Director of the Disability Insurance Branch at…

    Feb 14, 2025

    News What you need to know: California’s work to pre-deploy resources ahead of this week’s major storms paid off with successful rescue efforts and no major damage reported. SACRAMENTO — Governor Gavin Newsom today praised the proactive emergency response efforts that…

    Feb 19, 2025

    What you need to know: The passage of Proposition 1 by California voters adds rocket fuel to Governor Gavin Newsom’s transformational overhaul of the state’s behavioral health system. These reforms refocus existing funds to prioritize Californians with the most serious mental health and substance use issues, who are too often experiencing homelessness. They also fund more than 11,150 new behavioral health beds and supportive housing units and 26,700 outpatient treatment slots.

    Los Angeles, California – California took a major step forward in correcting the damage from 50 years of neglect to the state’s mental health system with the passage of Proposition 1. This historic measure — a signature priority of Governor Gavin Newsom — adds rocket fuel to California’s overhaul of the state’s behavioral health systems. It provides a full range of mental health and substance abuse care, with new accountability metrics to ensure local governments deliver for their communities.

    This is the biggest reform of the California mental health system in decades and will finally equip partners to deliver the results all Californians need and deserve. Treatment centers will prioritize mental health and substance use support in the community like never before. Now, it’s time to roll up our sleeves and begin implementing this critical reform – working closely with city and county leaders to ensure we see results.

    Governor Gavin Newsom

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    What they’re saying: 

    • Sacramento Mayor Darrell Steinberg, original author of the Mental Health Services Act: “Twenty years ago, I never could have dreamed that we would have the strong leadership we have today, committing billions and making courageous policy changes that question the conventional wisdom on mental health. Now, with the passage of Proposition 1. California is delivering on decades old promises to help people living with brain-based illnesses, to live better lives, to live independently and to live with dignity in our communities. This is a historic moment and the hard work is ahead of us.“
    • Senator Susan Eggman (D-Stockton), author of Senate Bill 326: “Today marks a day of hope for thousands of Californians who are struggling with mental illness – many of whom are living unhoused. I am tremendously grateful to my fellow Californian’s for passing this important measure.  And I am very appreciative of this Governor’s leadership to transform our behavioral health care system!”
    • Assemblymember Jacqui Irwin (D-Thousand Oaks), author of Assembly Bill 531: “This started as an audacious proposal to address the root cause of homelessness and today, Californians can be proud to know that they did the right thing by passing Proposition 1. Now, it’s time for all of us to get to work, and make sure these reforms are implemented and that we see results.”

    Bigger picture: Transforming the Mental Health Services Act into the Behavioral Health Services Act and building more community mental health treatment sites and supportive housing is the last main pillar of Governor Newsom’s Mental Health Movement – pulling together significant recent reforms like 988 crisis line, CalHOPE, CARE Court, conservatorship reform, CalAIM behavioral health expansion (including mobile crisis care and telehealth), Medi-Cal expansion to all low-income Californians, Children and Youth Behavioral Health Initiative (including expanding services in schools and on-line), Older Adult Behavioral Health Initiative, Veterans Mental Health Initiative, Behavioral Health Community Infrastructure Program, Behavioral Health Bridge Housing, Health Care Workforce for All and more.

    More details on next step here

    Press Releases, Recent News

    Recent news

    Feb 19, 2025

    News State continues raising awareness of dangerous drug  What you need to know: California is using a multifaceted approach to tackle illicit fentanyl, including seizing nearly $300 million of illicit fentanyl since 2023 and increasing public education in schools…

    Feb 14, 2025

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Melissa Stone, of Elk Grove, has been appointed Chief Deputy Director at the Department of Child Support Services. Stone has been Deputy Director of the Disability Insurance Branch at…

    Feb 14, 2025

    News What you need to know: California’s work to pre-deploy resources ahead of this week’s major storms paid off with successful rescue efforts and no major damage reported. SACRAMENTO — Governor Gavin Newsom today praised the proactive emergency response efforts that…

    MIL OSI USA News –

  • MIL-OSI Europe: President Calviño’s interview with the Süddeutsche Zeitung

    Source: European Investment Bank

    Interview by Matthias Kolb and Alexander Mühlauer (Süddeutschen Zeitung)

    Nadia Calviño is President of the European Investment Bank (EIB), the largest promotional bank in the world. On behalf of the EU Member States, it is tasked with ensuring stability through investments within and beyond the European Union. So it’s little wonder that the former Deputy Prime Minister of Spain would attend the 61st Munich Security Conference. Shortly before the event, Calviño visited Ukrainian President Volodymyr Zelenskyy in Kyiv, signing investment agreements totalling around  €1 billion. Before beginning her interview with the Süddeutsche Zeitung, the 56-year-old wanted to get one thing straight, right from the start: Europe must realise that we are at a turning point in history.

    Something seems to have ruptured between the United States and the European Union. Trump is talking with Putin about the future of Ukraine, without the EU at the table. The US Secretary of Defense says that America will no longer guarantee security in Europe. And US Vice President J.D. Vance says the greatest risk for Europe is not Russia or China, but the alleged internal threat to freedom of expression. How shocked are you by this?

    Calviño: I’m not shocked, or even surprised. I was certain we would see a fundamental change in transatlantic relations. We Europeans need to remember where our strengths lie, stand up for our interests and defend the rules-based world order from which we have benefited so richly over the past 80 years. And the Americans even more so.

    Isn’t the new US government threatening to destroy this world order?

    I am convinced that good transatlantic relations are strategically important for both sides. We must work to create a new foundation for them. In such turbulent times, it is more important than ever for Europe to stand for stability and reliability – not just within our own borders, but also for the rest of the world. That Europe should do even more to uphold a rules-based world order is something I hear often from our partners across the globe.

    But again, do the United States pose a risk to the global order?

    It is in their interest to preserve the things that have made America great. Institutions like the World Bank, the International Monetary Fund or the World Trade Organization, which we founded together. That’s one reason the US dollar is a global reserve currency. There are many win-win situations to be had from working together, and with Europe. But the most important thing is for us to accept that the world of tomorrow is very different from the world of yesterday.

    “We are at a turning point in history.”

    The European Investment Bank is the world’s largest promotional bank. As its president, what can you do to help Europe stand the test of time in this new world?

    We are at a crucial moment in history. And at a turning point in the geopolitical order. The future will depend on the decisions we make today, and every decision counts.

    What does that mean exactly?

    Since I joined the EIB as president in 2024, I have held talks with all 27 EU Member States and our European and international partners, but also with civil society and industry. For the first time, we have set out a clear Strategic Roadmap. 2024 was a record year for us, in which the EIB signed €89 billion in financing to strengthen Europe’s competitiveness and security. These funds will go, for example, to energy infrastructure and renewable projects, to new technologies like artificial intelligence or quantum computers, and to supporting the transport and automotive industries. In 2024, we invested a record amount in energy networks. We also doubled our support for security and defence – to €1 billion – and we expect to double it again in 2025.

    At the Munich Security Conference, we kept hearing the question of where Member States could get the many billions of euros they would need to invest in their armies, including under pressure from Trump. Are they all coming to you now?

    Ursula von der Leyen has already proposed relaxing the rules under the Stability Pact so that EU countries can finance their defence spending. Olaf Scholz has similar ideas. The EIB is not a defence ministry, but there is a lot we can do to help in this area. For example, if Member States want to renovate their roads and bridges to improve military mobility, we can fund that, just like we can fund protection of critical infrastructure like submarine cables, or investments in cybersecurity. We are doing this, and are exchanging with Europe’s finance and defence ministries and with industry.

    What is the EIB financing in Germany in this domain?

    We are currently looking into 14 specific projects across Europe. In 2021, for example, we granted the Munich-based drone startup Quantum Systems a loan of €10 million. Their products are now used by the Ukrainian military, and have both civilian and military applications, so they can be supported by the EIB. The Lithuanian government has just applied to us with a proposal that we are now evaluating. It seeks financial assistance to build the base for the new German army brigade in Rūdninkai, near the border with Belarus.

    Soon 5 000 German soldiers will be permanently stationed in Lithuania, as a deterrent to Russia. Cost projections by the German Defence Ministry for this brigade are over €10 billion. Lithuania would like to invest around €1 billion in the new base. How much money could come from the EIB?

    This is a very important and demanding project, and we’ve only just started looking into the details. Another good example is the EIB support for the expansion of the Danish port in Esbjerg. Going forward, it will be better able to accommodate NATO vessels and the transport of materials for offshore wind farms.

    You just came from a visit to Ukraine. How is the EIB supporting that country?

    The trip to Ukraine was my first one outside the EU as EIB President. We are probably Ukraine’s most important investment partner, and our role is one that our partners value greatly. During my visit, we signed agreements for investment totalling around €1 billion. They will allow major Ukrainian banks to grant more loans to medium-sized companies. And with the country’s government, we have signed packages to finance infrastructure for energy, transport, water and district heating, as well as the construction of bunkers in schools and nurseries. So we are actively investing in all of the important areas for the Ukrainian people to lead normal lives, as far as possible. And, of course, we aim to strengthen the country’s resilience.

    Are you also supporting Ukraine’s defence industry?

    We support the European security and defence industry, which also helps Ukraine. In 2024 we expanded the dual-use approach, so that we can now support a wide range of projects, such as border security, cybersecurity, satellites and drones, and mine clearance.

    The CEO of the Italian arms company Leonardo recently told our reporters that Europe has one main problem: Member States spend more and more money on defence, but don’t work together enough. Is he right?

    It is clear that a common European procurement system would make us stronger and more efficient, especially when it comes to our flagship projects. And yes, I think the European Investment Bank can contribute by acting as an independent appraiser for projects. In 2024, to bring in top expertise, we signed agreements with the NATO Innovation Fund and the European Defence Agency so that we can draw on their technical knowledge in this regard.

    Is there any dispute at the EIB due to differing positions on Ukraine, with member countries like Hungary or Slovakia that have pro-Moscow governments?

    No, not at all.

    “I would never presume to tell a Member State what to do.”

    So you are president of one of the only EU institutions that aren’t divided?

    I told you that I visited the 27 Member States, and listened very carefully to them. On that basis, we drew up our strategy, which was unanimously supported. We are therefore well aligned with the EU priorities and the expectations of the Member States. There is strong support for what we are doing. Including in Ukraine.

    When it comes to Europe’s future, one word always comes up: competitiveness. What does Europe need to do to avoid falling even further behind the US and China economically?

    The different reports, for example by Enrico Letta and Mario Draghi, are quite unanimous: We need market integration, streamlining and investment. So what we need to do is clear. And I think the new Commission is willing to go in that direction. On streamlining, for example, we have teamed up with the Commission to adapt environmental reporting standards so that we can pursue the Paris Agreement and our green transformation objectives in a way that promotes the competitiveness of European industry, as well as green finance and green investment.

    How optimistic are you that Europe will finally begin to react more quickly and actually make decisions? With the capital markets union, we’ve been waiting ten years for things to finally happen. And that’s just one example of many.

    As Spain’s Minister of Finance and its Deputy Prime Minister, I saw lots of things. The euro area crisis, the COVID-19 pandemic. And I have seen how Europe can succeed: Together, we developed the vaccines, and we dealt with the crisis. With the NextGenerationEU package, Spain has made some very far-reaching reforms and, thanks to mobilising investment, it is now the best-performing economy in Europe and a driver of growth and prosperity on the continent. We succeed when we unite, act decisively, truly focus and bring all our energy together.

    In contrast to Spain and other countries, Germany’s economy has been hit hard. Many experts see the debt brake as an obstacle to further growth. What does Germany have to do for things to start looking up again?

    I would never presume to tell a Member State what to do. I simply wish for a strong Germany with a stable, pro-Europe government – because we need a strong Germany at the centre of our union.

    MIL OSI Europe News –

  • MIL-OSI Europe: Briefing – Revised Product Liability Directive – 19-02-2025

    Source: European Parliament

    As products have become more complex in the digital age, the need for a new directive on liability of defective products has arisen. The new directive will revise the existing Product Liability Directive, adopted nearly 40 years ago in 1985. The directive brings the European Union’s product liability regime up to speed with the digital age, circular economy business models and global value chains by ensuring that consumers receive compensation for defective products, including those manufactured outside the EU. It introduces new provisions to address liability for products such as software (including artificial intelligence systems) and digital services that affect how the product works (e.g. navigation services in autonomous vehicles). It also alleviates the burden of proof for victims under certain circumstances. The new directive on liability of defective products was published in the EU’s Official Journal on 18 November 2024. It entered into force on 9 December 2024. Member States must transpose the directive into their national laws and implement the changes by December 2026. Fourth edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.

    MIL OSI Europe News –

  • MIL-OSI Security: Federal Indictment Charges Suburban Chicago Man With Trafficking Firearms and Drugs

    Source: Office of United States Attorneys

    CHICAGO — A federal grand jury has indicted a suburban Chicago man for allegedly trafficking firearms and drugs.

    An indictment returned Thursday in U.S. District Court in Chicago charges EFRAIN JACOBO, 42, of Prospect Heights, Ill., with federal firearm and drug offenses.  He pleaded not guilty to the charges during his arraignment this morning in federal court.  Jacobo is currently detained in federal custody.

    According to the indictment and a criminal complaint previously filed in the case, Jacobo dealt six handguns, a rifle, ammunition, and narcotics in a series of transactions last fall in Joliet, Ill.  The drugs in the deals included methamphetamines and cocaine. Unbeknownst to Jacobo, the individual to whom he sold the guns and drugs was an undercover law enforcement officer, the charges allege.

    During the investigation, law enforcement seized approximately 150 kilograms of methamphetamines from a truck that had traveled from Texas to Bolingbrook, Ill.  Law enforcement also seized fentanyl and cocaine from a storage facility used by Jacobo in Wheeling, Ill., and additional cocaine from Jacobo’s vehicle, the charges allege.

    The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration, and Mike Rompa, Chief of the Bolingbrook, Ill. Police Department.  The government is represented by Assistant U.S. Attorney Margaret A. Steindorf.

    The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

    MIL Security OSI –

  • MIL-OSI USA: ICYMI: Lummis Addresses Wyoming Legislature 

    US Senate News:

    Source: United States Senator for Wyoming Cynthia Lummis
    Cheyenne, WY — Senator Cynthia Lummis (R-WY) on Friday addressed her former colleagues in two speeches to the Wyoming House of Representatives and the Wyoming Senate.  
    Senator Lummis discussed the excitement in Washington surrounding President Trump’s agenda, important policy changes that will positively impact Wyoming, and the progress that DOGE and Elon Musk are making in rooting out waste, fraud, and abuse from within our government. 
    Click here to watch Sen. Lummis’ remarks to the Wyoming Senate
    Click here to watch Sen. Lummis’ remarks to the Wyoming House of Representatives
    Excerpts from Sen Lummis’ Wyoming Senate Remarks:
    “It’s such an honor for me to come and get to visit with you. Thank you for allowing me to serve you, and this state, in the United States Senate. It’s an absolute new day in Washington. 
    …
    “Three hundred executive orders. One that we are all proud of is to reverse the Rock Springs Resource Management Plan (RMP), and the Buffalo RMP, there is recognition by this president that we need all sources of energy, including hydrocarbons to run this nation. 
    “Artificial intelligence is going to double the demand we have now for energy – and we don’t have enough baseload energy to meet that need. Well Wyoming does – we export about twelve times more energy than we consume. So, my office is working with AI companies to encourage them to bring their computing needs here and use our energy to produce the computer capacity to make the United States number one in AI – and keep it that way. 
    “I want you to know that I’ve invited three of our new cabinet members to Wyoming. The Senate, as they say, is so different from the U.S. House – the Senate is in the personnel business. And that’s about all we’ve done since January 20th. We’ve confirmed more cabinet members than have been confirmed by this time in recent memory. 
    “One of them, that I’ve invited to Wyoming, is EPA Director Lee Zeldin. Lee has only been to Wyoming once and it was to Teton County. So, he has yet to see the EPA’s impacts on our state. He is anxious to come and anxious to learn. I served in the U.S. House with Lee Zeldin. He is a great guy but he is from New York and our issues are somewhat different than theirs. And he wants desperately to help us through challenging permitting issues and to understand just how clean we can do hydrocarbon energy. No state can do it cleaner than we can.
    “I’ve also invited Sean Duffy, another person with whom I served with in the U.S. House, who is our Transportation Secretary. As you know, the Highway Trust Fund is heading for insolvency in about three years. Part of that is driven by the fact that electric vehicles pay no fuel taxes so the funds are depleted because there are enough vehicles on the road who are not contributing to the safety of our highways because they pay no taxes. Only those of us who drive gasoline and diesel vehicles are contributing. 
    ….
    “The other person I invited out was RFK Jr. RFK Jr. hunts in Sweetwater County and he’s hoping after a pretty grueling process that he has just completed to come out and do a little hunting in Sweetwater County. I asked if while he’s here he might consent to do a healthcare roundtable in Rock Springs. And he said, “absolutely.” 
    And so, unless the president has other plans for his time, we hope to get him this spring to Rock Springs. That is an opportunity to help him understand frontier and rural healthcare in a way that only frontier and rural areas can. 
    ….
    “We are in a new Golden Age in Washington. It’s like nothing I’ve ever seen. I got to be at the White House when President Trump signed the executive order restricting women’s sports to women. It was just a celebration. There were over a hundred women athletes behind the president on these bleachers. 
    …..
    “It’s been indescribably humbling to be there and see America back in charge – and the people back in charge of America.
    “I want to also tell you what Elon Musk is doing is incredibly important to America. He is ferreting our true waste, fraud, and abuse. And it’s shocking to see the pushback he is getting. He is auditing – he is finding where people were paid who should not have been. Government benefits, our dollars, going to people who should not have had them.
    ….
    “Mr. President – thank you for the privilege of the floor.”

    MIL OSI USA News –

  • MIL-OSI Asia-Pac: The conference was not just limited to discussing challenges, but also focused on collective efforts to find solutions: Union Minister Shri C R Patil

    Source: Government of India

    The conference was not just limited to discussing challenges, but also focused on collective efforts to find solutions: Union Minister Shri C R Patil

    The second All-India State Water Ministers’ Conference concludes with key recommendations on water security

    Second day of the conference focuses on Water Delivery Services, Demand Management & Water Use Efficiency and Integrated River & Coastal Management

    The mission ‘Har Khet Ko Pani’ through strategic interventions highlighted in the conference

    Second all India conference proposes the Bureau of Water Use Efficiency to promote water use efficiency across all sectors

    The day one discussions revolves around the development and maintenance of water storage infrastructure

    The conference reaffirms its commitment to sustaining the Jal Jeevan Mission (JJM), with a particular emphasis on community-led operation

    Posted On: 19 FEB 2025 6:42PM by PIB Delhi

    The second All-India State Water Ministers’ Conference successfully concluded  in Udaipur, Rajastan, bringing together key stakeholders to deliberate on critical water management issues. The final day of the conference focused on three thematic sessions: Water Delivery Services: Irrigation and Other Uses, Demand Management and Water Use Efficiency, and Integrated River and Coastal Management. These discussions led to significant recommendations aimed at enhancing India’s water governance and ensuring sustainable water resource management. The two day conference on February 18-19, 2025 was inaugurated by Union Minister of Jal Shakti  Shri C R Patil in  the presence of  Chief Minister of Rajasthan Shri Bhajan Lal Sharma.

     

    In the closing ceremony of the two day conference, Union Minister of Jal Shakti Shri C R Patil emphasized that the conference was not just limited to discussing challenges, but also focused on collective efforts to find solutions. The Minister also highlighted the importance of such forums in sharing knowledge and finding practical solutions to issues.

    The final day of the conference emphasized the importance of achieving the mission ‘Har Khet Ko Pani’ through strategic interventions. To this end, adopting Evapotranspiration (ET) based irrigation performance assessment and improving on-farm application efficiency through micro-irrigation were recommended. Accelerating Command Area Development for last mile connectivity and promoting conjunctive use of surface water, groundwater, and treated water through guidelines and Standard Operating Procedures (SOPs) were also suggested.

    Furthermore, the conference recommended enhancing the reach of the Pressurized Irrigation Network (PIN) and Underground Pipe Line (UGPL). A bureau of water use efficiency to promote Water Use Efficiency (WUE) across all sectors was also proposed in the conference. Holistic Demand Management for reducing water stress, adopting water-efficient cropping patterns, and applying state-of-the-art technology, including AI/ML, for sustainable water management practices in agriculture was also emphasized.

    In addition, the conference recommended promoting volumetric measurement of water uses in all sectors. River Rejuvenation through wastewater treatment, recycle and reuse, e-flow, flood plain zoning, riverfront development, and community participation were also suggested. Expanding the coastal monitoring network, promoting ecological restoration and biodiversity conservation in river and coastal regions, rejuvenating springs and other natural sources for augmenting river flows, and promoting circular economy and water tourism as self-sustaining economic models were also recommended. These recommendations aim to strengthen India’s water management and conservation efforts ensuring a sustainable and secure water future for the country.

    The conference reaffirmed its commitment to sustaining the Jal Jeevan Mission (JJM), with a particular emphasis on community-led operation and maintenance through Village Water & Sanitation Committees (VWSCs). Water quality testing remains a priority, ensuring safe drinking water reaches every household. Discussions also explored measures to achieve urban water security through the AMRUT Scheme and integrate grey water management under Swachh Bharat Mission 2.0. Special attention was given to vulnerable regions, ensuring that potable water reaches the most underserved communities.

    A key focus area of the first day of the conference was the development and maintenance of water storage infrastructure, not only through new projects but also by prioritizing Extension, Renovation, and Modernization (ERM) of existing systems. Discussions underscored the importance of accelerating river interlinking projects through consensus-building, alongside the repair, renovation, and restoration of smaller water bodies to enhance water availability. Delegates also stressed the need for automated reservoir operations for better storage management, as well as comprehensive interventions to promote water conservation at every level.

    The conference also witnessed deliberations revolved around strengthening water governance, enhancing storage infrastructure, improving irrigation systems, and increasing water-use efficiency. Discussions emphasized the need for Integrated Water Resources Management (IWRM) tailored to state-specific requirements, participatory governance at the grassroots level, and water budgeting to optimize demand and availability. The importance of leveraging data, technology, and innovation to improve efficiency and sustainability was also highlighted. Additionally, there was a strong push to scale up the ‘Jal Sanchay Jan Bhagidari’ initiative nationwide to promote community-driven water conservation efforts.

    The conference witnessed the participation of Chief Ministers of Odisha and Tripura, Deputy Chief Ministers of Himachal Pradesh, Chhattisgarh, and Karnataka, along with 34 Ministers and over 300 delegates.

    ***

    Dhanya Sanal K

    Director

    (Release ID: 2104797) Visitor Counter : 32

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: Governor McKee, Rhode Island Commerce Launch New Grant Program to Increase Workforce Development in Ocean Tech Hub Industries

    Source: US State of Rhode Island

    Published on Wednesday, February 19, 2025

    PROVIDENCE, RI — Today, Governor Dan McKee and Rhode Island Commerce launched the Blue Youth Innovation Grant program — a collaboration between Rhode Island Commerce, the RI Department of Labor and Training, and the Community College of Rhode Island — to increase student interest and skills in careers that support industries critical to the success of the Ocean Tech Hub. The Blue Youth Innovation Grant seeks to prepare at least 100 students for future learning and employment in up-and-coming industries critical to our national and regional economic development and security.

    “Through programs like the Blue Youth Innovation Grant, we are charting a course toward a brighter and more prosperous future for Rhode Islanders through education,” said Governor Dan McKee. “Helping to advance the Ocean Tech Hub and our blue economy will help raise incomes and lead to greater economic prosperity.”

    The Ocean Tech Hub was one of 31 initiatives to receive a Tech Hub designation by the Biden-Harris Administration in 2023. Its mission is to advance national and regional economic development, security, and environmental sustainability through innovative ocean technology. Core industries that support the Ocean Tech Hub include robotics, sensors, advanced materials, composites, and artificial intelligence/machine learning, with a focus on undersea applications.

    The Blue Youth Innovation Grant is open to Rhode Island public high schools (including traditional local education districts, charter schools, and career and technical schools), Rhode Island-accredited higher education institutions, and Rhode Island-based employers (employers with at least 51% of employees working in Rhode Island and who are registered with the RI Secretary of State). 

    Funds can be used to:

    • Establish partnerships.
    • Hire coordinators.
    • Compensate instructors.
    • Purchase materials.
    • Develop coursework.
    • Cover additional instructional, coordination, and related expenses.

    “Rhode Island is the Ocean State, and any investment in our blue economy is an investment in our future,” said Secretary of Commerce Liz Tanner. “Creating the workforce of tomorrow starts in the classroom, and the Blue Youth Innovation Grant will help students, schools, and businesses adapt and innovate to ensure Rhode Island is the leader in ocean technology.”

    “This grant is an exciting investment in the state’s evolving blue economy,” said Director of RI Department of Labor & Training, Matthew Weldon. “By equipping students and workers with the skills needed for ocean technology careers, we are building a strong talent pipeline that will land good jobs in the fast-growing sector and ensure the long-term success of our Ocean Tech Hub.”

    “CCRI is proud to partner in this initiative to expand opportunities for students in Rhode Island’s growing ocean technology sector. As the state’s largest provider of workforce education, we are committed to equipping students with the skills and knowledge needed to thrive in these high-demand industries. The Blue Youth Innovation Grant will help strengthen the pipeline from education to employment, ensuring that Rhode Islanders are at the forefront of innovation in the blue economy,” added Rosemary A. Costigan, Ph.D., RN, interim president of CCRI.

    The deadline to apply is Friday, March 28, 2025.

    For more information on eligibility requirements and where to apply, click here.

    For more information on the Ocean Tech Hub, click here.

    MIL OSI USA News –

  • MIL-OSI Economics: 3 ways to improve access to justice through court modernization

    Source: Microsoft

    Headline: 3 ways to improve access to justice through court modernization

    The legal maxim that “justice delayed is justice denied” has long been a rallying cry to encourage judges and courts to operate more efficiently. If legal redress or fair relief are potentially available to an injured party but aren’t promptly provided or supported, that is effectively no remedy at all. Today, the need for accessible and fair judicial systems is at least as relevant as when William Penn voiced it back in the seventeenth century. Fortunately, technology is playing a key role in helping to realize the vision and improve access to justice.

    Worldwide, courts are contending with growing pressures that threaten to bog down judicial processes and erode trust in the judiciary. Antiquated case management systems, critical data stuck in silos, and public demand for digital means of participating in justice contribute to the urgency to find new solutions that are cost-effective and adequately cyber-secure.

    Innovative courts are already busy modernizing systems and taking early steps with generative AI technologies. At Microsoft for government, we help courts and judicial organizations maintain trust within their communities through solutions that transform operations and help to increase fairness, accountability, and transparency. Let’s have a look at some important benefits of court modernization, including a new way for courts to experiment with AI innovation in a safe and productive fashion.

    Explore public safety and justice capabilities

    Better access to justice in 3 key areas

    The adoption of cloud technologies typically has an almost immediate impact in terms of power, scalability, and flexibility. Modernizing tools and systems can further deliver new capabilities that help improve access to justice. Among these:

    1. Streamline court operations

    Courts function better with a more empowered workforce, and modernization makes it possible to quickly realize significant gains in efficiency. For example, by simply adopting Microsoft 365 copilot, 70% of users surveyed across industries reported being more productive and able to focus more on high-value activities and creative work.1

    Even greater benefits are gained by cloud solutions that bring together vast stores of data. Courts are often supported by aging legacy systems that hold data in disconnected silos, making it difficult, if not impossible, to integrate it all. For example, the Orange County Superior Court (OCSC) managed three disparate case management systems (containing more than 70 million paper files), which created serious inefficiencies. So, they integrated it all into a single data warehouse on Microsoft Azure, and realized new benefits in decision making and improved operational efficiency, as well as setting the stage for greater innovation.

    Case management systems are especially being transformed by modernization. Courts are moving away from expensive, limited legacy systems to modern solutions that speed up case processing, help judges access necessary information faster, and even increase the capacity of caseloads. Cloud-based case management systems can also fundamentally change how people interact with courts. For example, the Alabama Appellate Courts System developed a hybrid cloud solution that allowed 6,000 Alabama licensed lawyers to access information and file motions with no need to physically travel to any of its three courts.

    2. Improve everyday access to justice

    Trust in the court is central to justice, but for many people, the cost and friction involved in legal proceedings is high and the results are not always satisfactory. Modernization can help ease the burden with new services and capabilities that are user friendly and engage the public.

    Remote access to court proceedings is a profound benefit of modernization, making it faster, easier, and less expensive for people to participate. Widely adopted during the pandemic, remote hearings with Microsoft Teams are now being enhanced with generative AI features that can do things like generate unofficial transcripts or session recaps.

    The Teams experience can also be expanded to provide additional services. For example, the Federal Regional Court of the 1st Region (TRF1) in Brazil improved access to the court with a new Virtual Support Desk—an integrated online service platform within Teams that offers easy access to important judicial services for people across Brazil. It also provides a personalized work hub for court service agents, giving them access to real-time engagement analytics, proactive notifications, and service governance indicators.

    Modernization is also helping people to better navigate the legal system. Easy to use digital tools can provide guidance in legal processes, assist with document preparation, and help find important resources. Virtual assistants and chatbots can help people understand legal terms, access case information, and represent themselves in litigation in areas such as family law. Translation and transcription capabilities can also be included to make these services even more accessible.

    3. Enhanced experiences through new services

    Innovation with generative AI and advanced cloud services is still evolving for courts, but the early benefits give us a glimpse of how significantly courts will be transformed in the months and years to come.

    Many of the benefits listed above will accelerate dramatically as more courts invest in modernization. For individuals, AI-enabled online portals and mobile applications will provide easier access to case information, explain options, and answer questions about legal processes—providing support that even court staff cannot always offer due to legal restrictions.

    For judges and court staff, modernization promises faster processing of cases, with solutions that speed up administrative tasks, reduce delays caused by paperwork errors, and improve the filing of legal documents. AI can automate the extraction, categorization, and organization of information from documents such as invoices, contracts, and emails.

    Generative AI is increasingly also being integrated into legal workflows to automate tasks like tagging and classification. This promises to advance a key industry initiative called SALI (Standards Advancement for the Legal Industry, in which Microsoft is a participant), that is creating a standardized way to define and document legal matters. By automating tagging and classification of documents (commonly done by hand), AI can help SALI achieve its mission to benefit legal professionals and their clients by fostering innovation and efficiency in legal workflows.

    A low risk way to explore AI innovation in the court

    Many courts are understandably cautious about involving their critical data and systems in innovation with new technology such as AI. That’s why Microsoft endorses an important new initiative called the AI Sandbox, by the National Center for State Courts (NCSC).

    The AI Sandbox helps leaders in judicial organizations explore generative AI and learn how it can improve productivity, efficiency, and citizen service. Designed to serve the needs of courts across geographies, the AI Sandbox lets judges and court staff experiment with generative AI in a secure private cloud environment built on Azure. It supports the development of use cases such as drafting court orders, creating job descriptions, providing legal information, and much more. Best of all, it’s easy to use via the NSCS portal (no travel required).

    To get started, visit the NCSC AI sandbox website.

    Advancing your modernization journey

    Whether it’s the AI Sandbox or early experimentation with Microsoft 365 Copilot, the path to modernization is unique for every court. There are some fundamental elements that every organization will eventually need in order to realize the complete benefits of AI:

    • A cloud platform like Azure delivers proven scalability, security, and compliance.
    • A data and AI platform like Microsoft Fabric provides a common way to reason over your data.
    • A development platform like Azure AI Foundry lets you build world-class AI-native applications.

    Improving access to justice through technology is a long-term journey, but one that delivers benefits early and often. It’s important to define your goals, take a strategic approach, and choose a technology partner who will be with you every step of the way.

    Learn more

    To see how Microsoft is empowering court systems to be more agile, secure, and accessible for all, watch our video. To learn more about how we can help in your court’s modernization journey, visit our website or get in touch with your Microsoft sales representative or technology partner.

    Explore Microsoft for public safety and justice

    1Microsoft Work Trend Index Special Report.

    David Williams

    Director, Global Public Safety and Justice

    As a leader in Microsoft’s worldwide government team, David Williams is passionate about the application of technology to empower the people and organizations dedicated to Public Safety and Justice. He works closely with partners, field teams, and customers to find solutions that meet each organization’s unique requirements. A retired United States Army major, he has worked for more than 10 years in technology roles focused on intelligence, investigations, and data analytics.

    See more articles from this author

    MIL OSI Economics –

  • MIL-OSI Economics: A new level unlocked

    Source: Microsoft

    Headline: A new level unlocked

    Today Microsoft released Muse, a first-of-its-kind generative AI model that we are applying to gaming. But it’s so much more than that. What we’re sharing today is a huge step forward for gameplay ideation. And what’s even more exciting is what this breakthrough represents in our journey of building and using generative AI, and what industries, developers and creators of all interests will be enabled to do next.

    The impressive abilities we first witnessed with ChatGPT and GPT-4 to learn human language are now being matched by AI’s abilities to learn the mechanics of how things work, in effect developing a practical understanding of interactions in the world. As a computer scientist, this ability to understand and model a 3D world is something I and many other great researchers have pursued for over 10 years and, personally, I was not sure that it could be made possible with such speed and quality.

    In the case of Muse, just from observing human gameplay, this model develops a deep understanding of the environment, including its dynamics and how it evolves over time in response to actions. This unlocks the ability to rapidly iterate, remix and create in video games so developers can eventually create immersive environments and unleash their full creativity.

    Beyond gaming, I’m excited by the potential of this capability to enable AI assistants that understand and help visualize things, from reconfiguring the kitchen in your home to redesigning a retail space to building a digital twin of a factory floor to test and explore different scenarios. All these things are just now becoming possible with AI. From the perspective of computer science research, it’s pretty amazing, and the future applications of this are likely to be transformative for creators.

    —

    At Microsoft, we have a long history of collaboration between research and engineering. Today, as we release Muse, we are also announcing Azure AI Foundry Labs, where the AI community can explore the latest from Microsoft Research. Azure AI Foundry Labs will help accelerate the transition from research to solutions, bringing new ideas to the broader community to help shape the future of AI. Learn more.

    Tags: AI, Azure AI Foundry Labs, ChatGPT, GPT-4

    MIL OSI Economics –

  • MIL-OSI: Buffalo Run Casino & Resort Chooses QCI Chatalytics to Enhance Casino Operations with Integrated AI Solutions

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Feb. 19, 2025 (GLOBE NEWSWIRE) — Buffalo Casino & Resort has chosen Quick Custom Intelligence’s (QCI) Chatalytics, an AI-based platform, to transform casino operations and enhance guest satisfaction. The QCI Chatalytics package—encompassing Slot Copilot, Player Copilot, the Dashboard, and the Robot Button—integrates OpenAI technology for real-time insights and efficient decision-making across the gaming floor.

    Designed to boost both player and slot management, QCI Chatalytics delivers an advanced combination of AI-driven features. Slot Copilot empowers operators with live slot machine performance monitoring, predictive analytics, and automatically assigned tasks. Player Copilot focuses on personalized engagement by analyzing guest data to guide service strategies and reward offerings. With the Dashboard, teams benefit from an easy-to-read, real-time overview of key performance metrics, enabling swift, data-informed insights. Additionally, the Robot Button automates routine tasks, freeing up staff to concentrate on more valuable responsibilities and boosting overall productivity.

    Mary Jewett, General Manager of Buffalo Run Casino & Resort, conveyed her enthusiasm: “Bringing QCI Chatalytics on board represents a vital step in leveraging AI to enhance our operations. With cutting-edge tools like the Robot Button, Slot Copilot, and Player Copilot, we can offer more tailored guest experiences while gaining a clearer understanding of our gaming operations.”

    Dr. Ralph Thomas, CEO of QCI, outlined his perspective on the new partnership: “We are thrilled to introduce QCI Chatalytics to Buffalo Casino & Resort. By weaving OpenAI’s capabilities into our solution, we deliver an unprecedented degree of automation and clarity. We believe Chatalytics will be a key factor in refining casino floor management and boosting guest satisfaction through instantaneous, data-driven decision-making.”

    The QCI Chatalytics suite is part of Quick Custom Intelligence’s broader mission to spur innovation in the gaming sector, offering a robust set of tools that streamline operations and enhance the overall player experience.

    ABOUT Buffalo Run Casino & Resort
    Owned and operated by the Peoria Tribe of Indians of Oklahoma, Buffalo Run Casino & Resort is future-focused on a gaming entertainment experience that both excites and exceeds guest expectations. Maintaining its reputation for a clean and friendly environment, it empowers team members and continues to elevate hospitality and guest experiences by investing in team member training and career development programs. Consequently, this strategic reinvestment into team members and property has resulted in earning the vote for one of the Best and Brightest Companies in the Nation to work for in 2022.

    Buffalo Run Casino & Resort has over 70,000 square feet of casino floor and features the area’s widest variety of slots and tables games. The resort also includes a non-smoking Hotel, Truckers Lounge with special amenities and offers, the Peoria Showplace in-door event center, the outdoor amphitheater, complimentary entertainment in the Backwoods Bar, an 18-hole championship golf course, two indoor Top Golf® bays, and a smoke-free high-end Player’s Lounge. Additionally, the Buffalo Run Casino & Resort offers three dining experiences including Coal Creek Restaurant with high-end cuisine, the Bistro with hand-tossed brick oven pizza, and the Backwoods Bar & Grill which claims the title for best in-house smoked barbecue in the area.

    Ongoing advancements to the property include the Peoria Showplace remodel, Hotel updates and restaurant remodel with more to come. New technology has been implemented to streamline offer redemption for guests that include self-serve kiosks for dining and promotions, digital core mail pieces, and a mobile app for monthly promotional information. Updates on the casino floor include in-game bonuses and upgraded slots. Innovation and strategic marketing decisions are powered by data driven technology (QCI), empowering the casino to customize the guest experience and increase loyalty in a highly competitive market.

    ABOUT QCI
    Quick Custom Intelligence (QCI) has pioneered the revolutionary QCI Enterprise Platform, an artificial intelligence platform that seamlessly integrates player development, marketing, and gaming operations with powerful, real-time tools designed specifically for the gaming and hospitality industries. Our advanced, highly configurable software is deployed in over 250 casino resorts across North America, Australia, New Zealand, Canada, Latin America, and The Bahamas. The QCI AGI Platform, which manages more than $35 billion in annual gross gaming revenue, stands as a best-in-class solution, whether on-premises, hybrid, or cloud-based, enabling fully coordinated activities across all aspects of gaming or hospitality operations. QCI’s data-driven, AI-powered software propels swift, informed decision-making vital in the ever-changing casino industry, assisting casinos in optimizing resources and profits, crafting effective marketing campaigns, and enhancing customer loyalty. QCI was co-founded by Dr. Ralph Thomas and Mr. Andrew Cardno and is based in San Diego, with additional offices in Las Vegas, St. Louis, Dallas, and Tulsa. Main phone number: (858) 299.5715. Visit us at www.quickcustomintelligence.com.

    ABOUT Dr. Ralph Thomas
    Dr. Ralph Thomas is the Co-Founder and Chief Executive Officer of Quick Custom Intelligence. Ralph is a product visionary in applied analytics and the founder of two companies that deliver solutions in casino gaming, education, and adult learning. As a gaming industry veteran, Dr. Thomas has substantial experience implementing analytics into single and multi-property gaming companies to drive tangible and measurable gains to the bottom line and has built business intelligence tools for multibillion-dollar casinos. Dr. Thomas is co-author of seven books and over 80 articles on applied analytics and data science in gaming, an inventor on dozens of patents, and understands gaming from raw data up through casino operations, giving him a unique, 360-degree view of the industry.

    Contact:
    Laurel Kay, Quick Custom Intelligence
    Phone: 858-349-8354

    The MIL Network –

  • MIL-OSI Economics: Introducing Muse, a generative AI model for gameplay

    Source: Microsoft

    Headline: Introducing Muse, a generative AI model for gameplay

    MIL OSI Economics –

  • MIL-OSI USA: Reed, Colleagues Request Information on Elon Musk’s Access to VA Medical Records

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed
    WASHINGTON, DC — U.S. Senator Jack Reed (D-RI) is teaming up with Senator Jon Ossoff, the Ranking Member of the Appropriations Subcommittee on Military Construction and Veterans Affairs (Milcon-VA) to safeguard veterans’ private information, asking questions about unelected billionaire Elon Musk’s access to veterans’ medical records and Musk’s dysfunctional and ineffective cost-cutting directives that could make it harder for veterans to get the care they deserve. 
    Reed and Ossoff, along with Appropriations Committee Vice Chair Patty Murray (D-WA) and fellow Subcommittee members Senators Martin Heinrich (D-NM), and Gary Peters (D-MI) are pressing U.S. Department of Veterans Affairs (VA) Secretary Doug Collins to protect veterans, their families, and VA staff from unprecedented access to sensitive information by Elon Musk and the so-called Department of Government Efficiency (DOGE).
    The Trump Administration is severely reducing VA staffing levels.  And according to a recent report by Military.com, DOGE employees had accessed VA computer systems at the Department’s headquarters in Washington, DC.
    “We understand that personnel reporting to Mr. Musk have recently visited VA facilities,” the five senators wrote to VA Secretary Collins. “Senators, veterans, and members of the public have serious concerns regarding Mr. Musk’s extraordinary and unprecedented activities and the lack of transparency surrounding them, including his potential access to and handling of sensitive or personal information.”
    “Accordingly, we seek specific information regarding VA’s engagement with Elon Musk and the Department of Government Efficiency (“DOGE”),” they continued.
    The U.S. Senators requested a list of DOGE personnel who have visited VA facilities, the systems they accessed, and whether veteran data — including medical and service records — may have been viewed, run through AI/LLM programs, copied, or transferred. The group also requested that Secretary Collins reveal the nature of the agreement under which DOGE personnel are governed by in their engagement with the VA.
    The VA’s mission is to help veterans successfully transition to civilian life and assists them in their post-service journey by ensuring they have access to the benefits they earned.  The VA offers veterans and their families a wide range of services, including healthcare, housing, education, training, disability compensation and pension assistance, and more.
    Read the full letter here.

    MIL OSI USA News –

  • MIL-OSI: Highclere Capital Launches a New and Transformational Mortgage Company

    Source: GlobeNewswire (MIL-OSI)

    Where Deals Get Done

    TORONTO, Feb. 19, 2025 (GLOBE NEWSWIRE) —

    Highclere Capital Corporation, a new residential mortgage lender who intends to transform the Canadian mortgage industry, today announced its impending launch. The company will offer dynamic mortgage products to Mortgage Brokers across Canada funded by Global Capital Markets Solutions and underpinned by a Loan Origination System powered by AI technology.

    Highclere Capital is actively reaching out to Canadian Mortgage Brokers interested in partnering with an experienced team of lending professionals. Highclere Capital Corporation. plans to provide a range of diversified mortgage solutions—from competitive Prime mortgage products to flexible Alternative options—delivered through a network of reputable Mortgage Brokers and agents committed to empowering Canadian homeowners throughout their journey.

    The company was founded by Leon Dadoun and Paul Grewal, both of which are seasoned and experienced entrepreneurs. The company is led by Leon Dadoun (CEO), a banking professional with 40 years of expertise in Global Debt Capital Markets, International Securitization, and Regulatory Public Policy Formation. Paul Grewal (President) is a well-respected Financial Services Executive in the Canadian Mortgage industry with a proven track record of growing a Mortgage Finance Company and Bank Mortgage Portfolios.

    They have assembled an enthusiastic, experienced team dedicated to supporting Highclere Capital at all levels. In forming this new company, the priority has been on Capital Markets solutions, mortgage technology, product innovation and customer service to ensure that, even in its early stages, Highclere Capital provides reliable, forward-thinking choices to its Canadian partners.

    In a statement, Leon Dadoun, C.E.O., said that “Highclere intends to power its growth, by offering a wide range of residential mortgage products to brokers by innovating in how those mortgages are funded. AI and machine learning technologies will also be at the center of what we do to make sure service levels and adjudication are at the top of the industry. This new system is designed to advance qualified applications more quickly by removing common roadblocks and delays, significantly streamlining the process of securing funding. We will offer flexible solutions tailored to fit unique situations, helping more Canadians achieve their homeownership dreams.”

    Highclere will begin accepting client applications at the end of April 2025

    About Highclere Capital Corporation

    Highclere Capital Corporation is a newly formed Canadian Mortgage Finance Company that specializes in leveraging technology to improve the mortgage process and using internationally sourced capital markets funding to expand mortgage product solutions at competitive rates. In doing so, Highclere intends to empower their partners and clients with innovative approaches that foster long-term success.

    For additional information about Highclere, please visit https://www.highclere.ca.

    Empowering Your Journey

    Photos accompanying this announcement are available at

    https://www.globenewswire.com/NewsRoom/AttachmentNg/f65e1c51-02c4-4cf1-a8af-5137759d49fd

    https://www.globenewswire.com/NewsRoom/AttachmentNg/1489550c-beb5-430e-870b-18d619be0e8f

    The MIL Network –

  • MIL-OSI: Marbanc International Expands Scope of Real Estate Focus to Australia

    Source: GlobeNewswire (MIL-OSI)

    Photo Courtesy of Marbanc International

    NEW YORK, Feb. 19, 2025 (GLOBE NEWSWIRE) — Marbanc International has broadened its distressed real estate acquisition strategy to capitalize on emerging opportunities in the Australian property and mortgage markets.

    A recent analysis by SQM Research revealed that the number of properties on the market for over 180 days has surged by 10.1% year-over-year, reaching 69,658 listings. Major urban centers – including Melbourne, Darwin, Canberra, and Hobart – experienced double-digit increases in long-term listings. Notably, Victoria saw a 28.4% spike in distressed sale listings, the highest among Australian states.

    Income Direct’s Strategic Expansion

    Marbanc’s wholly owned Australian subsidiary, Income Direct, has been actively sourcing and conducting due diligence on multiple real estate opportunities, including:

    • Distressed properties
    • Developable landholdings
    • Infrastructure sites

    Income Direct’s executive chairman, Gerard Sivaprasad, stated:

    “The post-COVID economic climate has created compelling buying opportunities. Our investment committee is currently evaluating several large acreage sites with strong medium-to-long term value potential.”

    Market Trends & Future Outlook

    Louis Christopher, managing director of SQM Research, noted that Victoria is the first Australian state where distressed property listings now exceed pre-pandemic levels.

    “We can no longer consider this a benign trend in Victoria. While listings remain below pre-COVID levels, the sharp increase suggests more Melbourne property owners may be facing financial distress,” he said.

    Despite Australia’s Reserve Bank being expected to announce a reduction in official interest rates following its upcoming meeting, Marbanc anticipates continued activity in the distressed property sector and is positioned to capitalize on evolving market conditions.

    Contact Information:

    Contact Person: Gerard Sivaprasad
    Company: Marbanc International
    Website: https://marbanc.com/
    Email: gerards@incomedirect.com.au

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8b859aad-60a3-4104-ad3d-5283c2e6c84c

    The MIL Network –

  • MIL-OSI Global: How satellites revolutionised climate change science

    Source: The Conversation – UK – By Will de Freitas, Environment + Energy Editor, UK edition

    aappp / shutterstock

    Until relatively recently, humans were limited by the horizon. Climate scientists of the early 20th century could gather data from the world around them and perhaps what they were able to see from a hot air balloon or plane. But the really big picture – the global snapshot – remained out of sight.

    This roundup of The Conversation’s climate coverage comes from our award-winning weekly climate action newsletter. Every Wednesday, The Conversation’s environment editor writes Imagine, a short email that goes a little deeper into just one climate issue. Join the 40,000+ readers who’ve subscribed.

    The first satellite of any kind was the USSR’s Sputnik 1, launched in 1957. But it wasn’t until the 1960s that satellites designed specifically to observe the Earth and its climate made it into orbit and gave us the first overview of weather patterns. By the 1970s Nasa’s Landsat satellites were able to monitor things like tree cover.

    Jonathan Bamber, a climate scientist at the University of Bristol, says this “revolutionised our ability to carry out a comprehensive and timely health check on the planetary systems we rely on for our survival”. Data that once required months or even years of fieldwork was suddenly available in the time it took a satellite to orbit the planet.

    These days, this data can be remarkably precise and detailed. Bamber says: “We can measure changes in sea level down to a single millimetre, changes in how much water is stored in underground rocks, the temperature of the land and ocean and the spread of atmospheric pollutants and greenhouse gases, all from space.”

    Here’s a map of sea level rise, from Bamber’s article highlighting five satellite images that show how fast our planet is changing:

    The sea is rising quickly – but not evenly.
    ESA/CLS/LEGOS, CC BY-SA

    “This image,” writes Bamber, “shows mean sea level trends over 13 years in which the global average rise was about 3.2mm a year. But the rate was three or four times faster in some places, like the south western Pacific to the east of Indonesia and New Zealand, where there are numerous small islands and atolls that are already very vulnerable to sea level rise.”



    Read more:
    Five satellite images that show how fast our planet is changing

    In recent years, scientists have used AI to sift through and analyse satellite data. Bamber’s latest research, published in January this year, illustrates this nicely.

    A team of scientists, lead by Tian Li also of the University of Bristol, gathered millions of satellite images of glaciers in Svalbard, a remote and icy archipelago in the Arctic Ocean. In their write up, they note that human researchers once painstakingly looked through this sort of data.

    “This process”, they write, “is highly labour-intensive, inefficient and particularly unreproducible as different people can spot different things even in the same satellite image. Given the number of satellite images available nowadays, we may not have the human resources to map every region for every year.”

    Their solution was to use AI to “quickly identify glacier patterns across large areas”. The satellite-AI combo meant they could examine Svalbard’s retreating glaciers – surely among the least accessible places on the planet – in “unprecedented scale and scope”.

    They found that 91% of the many glaciers that flow into the sea around the archipelago have been “shrinking significantly”. They note that the same types of glacier can be found across the Arctic, and “what happens to glaciers in Svalbard is likely to be repeated elsewhere”.



    Read more:
    We built an AI model that analysed millions of images of retreating glaciers – what it found is alarming

    Many of those glaciers can be found in Greenland, home of the northern hemisphere’s largest ice sheet. In research published earlier this month, Tom Chudley of Durham University used satellite images to assess crevasses (cracks in the glaciers) in Greenland.

    A large glacier in west Greenland flows into the sea. That iceberg filled fjord is several miles wide.
    Copernicus Sentinel / lavizzara / shutterstock

    Chudley also combined satellite images with computerised analysis. His work made use of “ArcticDEM”, three dimensional maps of the polar regions based on high resolution satellite images.

    “By applying image-processing techniques to over 8,000 maps, we could estimate how much water, snow or air would be needed to “fill” each crevasse across the ice sheet. This enabled us to calculate their depth and volume, and examine how they evolved.“

    His conclusion was very blunt: the Greenland ice sheet is falling apart.



    Read more:
    The Greenland ice sheet is falling apart – new study

    Health watchdogs

    Many of you will be well aware that satellites are being used to monitor the health of the planet. What’s less well known is the role they can play in monitoring human health.

    Dhritiraj Sengupta, a satellite scientist at Plymouth Marine Laboratory, says satellites have become Earth’s new health and nature watchdog. His article details how satellites can map mosquito breeding sites to combat malaria, for instance, or can identify air pollution hotspots in cities.

    In his own research, he’s used satellite-derived chlorophyll data to assess the risk of cholera. Chlorophyll is the green pigment in plants that helps them use sunlight to make their food and grow.

    “Many bacteria like Vibrio cholerae which causes cholera, thrive in stagnant water,” Sengupta writes. “My team worked with the European Space Agency to show that its presence can be modelled using the concentration of chlorophyll found on the surface of bodies of water.”



    Read more:
    How satellites have become Earth’s new health and nature watchdogs

    So far, so good. Satellites have undeniably been useful for climate scientists. But in the longer-term, the satellites themselves may have an unforeseen effect on the climate.

    Last year, SpaceX announced it would “deorbit” 100 of its Starlink satellites to burn up in the atmosphere. Fionagh Thomson is a space expert, also at Durham University. She says that “atmospheric scientists are increasingly concerned that this sort of apparent fly-tipping by the space sector will cause further climate change down on Earth.”

    Particles from the satellites themselves won’t have a huge effect compared to the “440 tonnes of meteoroids that enter the atmosphere daily, along with volcanic ash and human-made pollution from industrial processes on Earth.”

    But one team “recently, and unexpectedly, found potential ozone-depleting metals from spacecraft in the stratosphere, the atmospheric layer where the ozone layer is formed.” The worry is that satellite debris may help form certain types of clouds that lead to ozone loss and may add to the greenhouse effect.

    She notes that this is all uncertain and needs more research. “But,” she writes, “we’ve also learnt that if we wait until indisputable evidence is available, it may be too late, as with the loss of ozone. It’s a constant dilemma.”

    Something for SpaceX scientists to look into, perhaps, once they’ve finished rescuing stranded astronauts from the International Space Station.



    Read more:
    Satellites are burning up in the upper atmosphere – and we still don’t know what impact this will have on the Earth’s climate

    – ref. How satellites revolutionised climate change science – https://theconversation.com/how-satellites-revolutionised-climate-change-science-250312

    MIL OSI – Global Reports –

  • MIL-OSI Security: Driving Innovation and Reducing Waste: Cherry Point Service Members, Civilians Complete Lean Six Sigma Training

    Source: United States Navy (Medical)

    Members of the Marine Corps Air Station Cherry Point community are now better prepared to improve processes and reduce waste after attending a weeklong course held aboard the base in late January 2025.

    Sailors, Marines and civilians serving aboard MCAS Cherry Point graduated Friday, January 31 from the five-day Lean Six Sigma Green Belt course held aboard Naval Health Clinic Cherry Point.

    “These individuals acquire valuable skills to improve operational efficiency, reduce waste and enhance the quality of care,” said Commander Brendon Tillman, who helped organize the class. “Lean Six Sigma Green Belt-trained Sailors bring practical tools and strategies that drive continuous improvements.”

    A clinic staff member with a Lean Six Sigma Green Belt certification will focus on small-scale process improvements within Naval Health Clinic Cherry Point using tools like the Define, Measure, Analyze, Improve, Control framework, commonly referred to as DMAIC. A team of LSS-trained Green Belts will work together under the supervision of an LSS-trained Black Belt.

    Green Belt projects in the clinic have improved lab specimen handling protocols, streamlined the Limited Duty completion process, enhanced the Ambulatory Procedure Unit and Dental supply inventory management process and increased the usage rate of evidence-based treatments for Post Traumatic Stress Disorder and depression.

    “The continuous improvement mindset instilled by LSS helps clinics develop stronger organizational resilience, enabling them to adapt to changing demands,” said Tillman. “These sailors become valuable leaders who can mentor others, drive process improvement initiatives, and contribute to the overall mission readiness of the clinic.”

    To earn their Green Belt certification, graduates from the course must prove their knowledge by completing two process improvement projects. An LSS certification, according to Tillman, demonstrates a Sailor and staff member’s drive towards professional development and innovation, setting them apart from their peers.

    MIL Security OSI –

  • MIL-OSI: Rygen Announces Partnership with Cargo Insurance Provider, Loadsure

    Source: GlobeNewswire (MIL-OSI)

    GREENVILLE, S.C., Feb. 19, 2025 (GLOBE NEWSWIRE) — Rygen Technologies, a leading supply chain solutions provider, has entered into a partnership agreement with Loadsure, an innovative Insurtech Managing General Agent (MGA), providing users of Corsair TMS access to insurance options through one platform. Both Rygen and Loadsure use advanced technologies that leverage data and AI, to provide speed, accuracy, and convenience to ultimately support the needs of today’s supply chain professionals.

    “The ability to seamlessly integrate Corsair with Loadsure and receive all necessary information in one place, omitting the need to seek outside sources for their client’s insurance needs, will immediately add value for customers,” said Jonathan Wollschleager, Director of Partnership and Enterprise Sales at Rygen. “This partnership reflects the Rygen commitment to creating state-of-the-art technology solutions that integrate seamlessly with other advanced systems, like the ones offered by Loadsure.”

    Corsair is an advanced Transportation Management System (TMS) that enables users to efficiently onboard carriers and execute transactions, as well as maintain end-to-end visibility of shipments. Because Corsair is built using cloud-native architecture, a wider range of suppliers, customers, and providers are available to users, enhancing flexibility and connectivity for supply chain managers. The implementation process is designed to be streamlined and hassle-free.

    Loadsure leverages high-resolution data and AI to analyze customers’ supply chain risk in detail and generate custom insurance policies to their exact specification. With its revolutionary “holistic freight protection” approach, Loadsure provides cost-effective protection for carriers, brokers, and shippers and enables near real-time claims processing in the event of a loss.

    Loadsure’s CEO and Founder, Johnny McCord stated, “We’re excited to partner with Rygen. Loadsure’s data-powered insurance products empower their customers to protect their businesses from loss, within their intuitive platform.”

    About Rygen Technologies  
    Rygen Technologies is a leading provider of state-of-the-art supply chain solutions that empower users to quickly, easily, and efficiently execute and manage freight, connect with partners, and seamlessly integrate with other operating systems. By leveraging advanced technology, the company is creating smarter, data-driven solutions, supported by excellent customer service to deliver real value.

    For more information, visit www.rygen.com.

    About Loadsure
    Loadsure is an Insurtech Managing General Agent (MGA) and Lloyd’s cover holder, currently serving the North America, and Europe markets. Built to tackle the underinsurance crisis, Loadsure leverages high-resolution data and AI to analyze every detail of an assured risk and generate custom insurance policies to the exact specification in seconds. With its revolutionary “holistic freight protection” approach, Loadsure empowers the freight community to make informed decisions about exposure and cost-effectively protect their businesses from loss with a portfolio of digital insurance products and near real-time claims processing. Loadsure’s platform integrates seamlessly into insurance intermediary workflows and can be embedded into freight industry TMSs and load boards or accessed directly via a web portal.
    Welcome to Freight Protection 2.0.
    Visit loadsure.net.

    Contact:
    Jonathan Wollschleager
    Director of Partnerships and Enterprise Sales
    jwollschleager@rygen.com
    732-546-7894

    The MIL Network –

  • MIL-OSI USA: Senators Markey, Merkley, Welch Press Google on Changes to AI Commitments

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey

    Letter Text (PDF)

    Washington (February 19, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Senate Commerce, Science, and Transportation Committee, and Senators Jeff Merkley (D-Ore.) and Peter Welch (D-Vt.) wrote to Google CEO Sundar Pichai with concerns that the company has recently reversed promises to not develop potentially harmful and dangerous AI technologies.

    In the letter the lawmakers write, “For years, Google’s AI Principles have allowed the public to understand the company’s values for the development and deployment of new technologies. The company first published the AI Principles in 2018 following employee backlash to one of its contracts.”

    The lawmakers continue, “Google removed those limitations on the development and deployment of AI products, among other changes to its AI Principles. A blog post accompanying these revisions made no reference to the removal of these long-standing commitments. Instead, the blog highlighted Google’s new core tenets in AI developments. The closest the post came to referencing these critical changes was its noting Google’s commitment to ‘pursue AI responsibly throughout the development and deployment lifecycle.’ This vague language does not provide any guidelines on the types of technology Google will or will not develop, raising more questions than answers and sparking concerns from Google’s current and former employees.”

    The lawmakers request Mr. Pichai respond to the following questions by March 7, 2025:

    • Please describe Google’s rationale for revising its AI Principles, especially its decision to remove the limitation on developing AI products for weapons or certain surveillance applications. 
    • Is Google currently developing or has Google currently deployed any AI products or potential projects that could be considered a weapon? 
      • If so, please provide detailed description of those projects. 
      • Going forward, if Google develops AI weapons projects, how does Google intended to mitigate the risks they pose?
    • Is Google developing or has Google currently deployed any AI products or potential projects that could be used for surveillance purposes in violation of internationally accepted norms? 
      • If so, please provide detailed description of those projects. 
      • Going forward, if Google develops AI surveillance projects in violation of internationally accepted norms, how does Google intended to mitigate the risks they pose?
    • Is Google developing or has Google currently deployed any AI products or potential products that could cause or are likely to cause overall harm? 
      • If so, please provide detailed description of those projects. 
      • Going forward, if Google develops AI projects that could cause or are likely to cause overall harm, how does Google intended to mitigate the risks they pose?
    • The new Google AI Principles state the company will ensure “appropriate human oversight, due diligence, and feedback mechanisms to align with user goals, social responsibility, and widely accepted principles of international law and human rights.” Please provide a detailed description of how Google plans to uphold these commitments.
    • The new Google AI Principles state the company will “employ rigorous design, testing, monitoring, and safeguards to mitigate unintended or harmful outcomes and avoid unfair bias.” Please provide a detailed description of how Google plans to uphold these commitments, including a detailed description of the testing and monitoring Google intends to implement.  
    • Will Google commit that any AI development that conflicts with the 2018 principles will include robust stakeholder consultation, including collaboration with workers, relevant experts, and impacted communities? If not, why not?

    MIL OSI USA News –