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Category: Natural Disasters

  • MIL-OSI USA: Duckworth Holds Senate Floor to Protest Project 2025 Architect Russell Vought’s Cabinet Nomination and Trump’s Illegal Power Grabs That Are Harming the Middle Class and Our National Security

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth

    February 06, 2025

    [WASHINGTON, D.C.] – Today, U.S. Senator Tammy Duckworth (D-IL) joined Senate Democrats’ 30-hour protest opposing Project 2025 architect Russell Vought’s nomination to serve as the Director of the Office of Management and Budget (OMB) under President Donald Trump. Holding the floor, Duckworth delivered an impassioned speech slamming Trump and unelected billionaire Elon Musk’s ongoing illegal power grabs—including his unlawful federal grant freeze and his shuttering of USAID—that are inflicting pain on middle-class Americans and endangering our national security. Video of Duckworth’s opening remarks can be found on the Senator’s YouTube and her full speech can be found on the Senator’s Twitter/X and Facebook.

    Key quotes:

    • “Decades before I ever considered a career in politics, when I was just starting out in the Army, I raised my right hand and took an oath. I swore to support and defend the Constitution of the United States. I vowed to protect our nation against all enemies—foreign and domestic. And in this moment, at this precipice for our country, I need to make good on that promise. Because in the just 18 days since Donald Trump was inaugurated, we have witnessed an all-out assault on the system of checks and balances that our government was founded upon. We have seen the President both overreach and underdeliver: proving through executive orders and Twitter marching orders that he cares more about the billionaires who belong to Mar-a-Lago than the middle-class folks he pretended to care for on the campaign trail.”
    • “Last week, news broke that Trump had declared a blanket freeze on all federal grants. Ignoring the fact that Congress had already appropriated those funds. Ignoring that he point-blank did not have the authority to do so. Ignoring that his action would—and already has—hurt countless folks who rely on these grants for their most basic needs… He manufactured a crisis that has left that single mom working a double shift in a Southside nursing home unsure whether her Medicaid will be stripped away in the dark of the night. He’s created a crisis that has left Veterans wondering if they’ll be able to access the benefits they earned with the blood they were brave enough to shed for our country. He’s fabricated a nightmarish reality where homeless shelters might have to close their doors and turn back onto the streets the at-risk teenagers who rely on their care.”
    • “Elon Musk is unelected, unvetted and unqualified—he does not have the legal authority to dismantle entire agencies. Yet in Trump’s America, the size of his bank account and how far he is willing to bend the knee is enough for our President to bestow on him unchecked power. Musk is willing to bow down to Trump’s throne made of fool’s gold and false promises. So in return, Elon gets to run wild, run rampant. He for some reason gets to have full access to Americans’ social security numbers and Veterans’ personal information—for what reason, no one knows and all of us should fear. He gets to hijack our systems to enrich himself rather than the middle class. He gets to stomp on those in need, then fire anyone who dares stand up for what’s right—or what’s legal…They aren’t making America great. They’re making it authoritarian.”

    Duckworth’s opening remarks as prepared below:

    I take the verbal baton from Senator King after hours and hours of arguments from my Democratic colleagues, not because I woke up this morning with a strong desire to hear my own voice for as long as I could on the Senate floor, but because decades before I ever considered a career in politics—when I was just starting out in the Army—I raised my right hand and took an oath. I swore to support and defend the Constitution of the United States. I vowed to protect our nation against all enemies—foreign and domestic.

    And in this moment, at this precipice for our country, I need to make good on that promise.

    Because in the just 18 days since Donald Trump was inaugurated, we have witnessed an all-out assault on the system of checks and balances that our government was founded upon.

    We have seen the President both overreach and underdeliver—proving through executive orders and Twitter marching orders that he cares more about the billionaires who belong to Mar-a-Lago than the middle-class folks he pretended to care for on the campaign trail.

    Look, 250 years ago this April, a few brave patriots grabbed their muskets and risked their lives at Lexington and Concord, sacrificing for a country that was still more of an idea, more of an ideal, than reality.

    They did so because they could no longer stand living under a tyrannical leader. 

    They did so because they had dreamt up the notion of a government of, by and for the people—and they knew that a system based on checks and balances was the best way to keep this new nation’s leaders from turning into the kind of tyrant they’d fled England to escape.  A system of checks and balances.

    Well, two weeks into Trump’s America, the only checks I see are the ones going into the pockets of Trump’s rich friends. The only balance I see is Trump’s balancing act between ripping off the middle class and endangering our national security.

    Our system of government is being eroded before our eyes. It is being perverted to work for the few—the billionaires—rather than the many, the people.

    And it is sickening to see so many of my colleagues on the other side of the aisle put their hands over their eyes and pretend they don’t see what’s happening, refusing to speak up as our President turns into more of a despot every day, as his power-grabs get more extreme, more insidious, more cruel. 

    Even if we took the full 30 hours of debate on this nomination, I don’t think we could get through all the ways that Trump’s absolute disregard for the rule of law over the past two weeks has already harmed America—and Americans. But let me use my time to try.

    Last week, news broke that Trump had declared a blanket freeze on all federal grants. Ignoring the fact that Congress had already appropriated those funds. Ignoring that he point-blank did not have the authority to do so. Ignoring that his action would—and already has—hurt countless folks who rely on these grants for their most basic needs.

    President Trump may think that he “owned the Libs” by causing havoc in our federal government. But what he’s really done is create a reality where his own voters who depend on groups like Meals on Wheels aren’t sure how they’re going to put food on the table next week.

    He may think he “destroyed woke culture” with this freeze. But no. No, he didn’t. Instead, he manufactured a crisis that has left that single mom working a double shift in a Southside nursing home unsure whether her Medicaid will be stripped away in the dark of the night.

    He’s created a crisis that has left Veterans wondering if they’ll be able to access the benefits they earned with the blood they were brave enough to shed for our country.

    He’s fabricated a nightmarish reality where homeless shelters might have to close their doors and turn back onto the streets the at-risk teenagers who rely on their care.

    Listen, when I was in high school, my family struggled. We had no money and some days had no food. I still remember going to the grocery store and counting out our last five one-dollar food stamps to buy as much bread and bologna as possible—then praying we’d have enough to last the week. I still remember the hours my dad spent walking from payphone to payphone, hoping to find just 50 cents so my brother and I could buy lunch at school the next afternoon. A lot of times, that hot lunch at school was the only meal I could count on.

    So as a former hungry kid, and now as a mom of two little girls, I cannot imagine the pain of parents who rely on school meals to feed their own kids and who are now terrified that Trump’s vanity project of a federal freeze will force their five-year-old to go hungry as the grants that fund cafeteria meal programs may now get gutted.

    Shame on Donald Trump. And shame on the Republicans who can’t seem to find the ounce of courage necessary to stand up and say what all of us in this Chamber so obviously know: That this is wrong. That this is outrageous. And that this is a wild, unlawful abuse of power.

    But Trump didn’t stop with the grant freeze. Last weekend, he gave Elon Musk—the world’s richest person—the power to cut off aid from the world’s most vulnerable people. He gave him the authority to dismantle an entire agency in one illegal, fell swoop. Together, they are now actively gutting USAID, completely undermining the United States’ national security and global standing—knowingly, intentionally—jeopardizing the safety of countless innocent people worldwide who rely on the organization for humanitarian assistance.

    Now, bad actors in the PRC and Russia will be able to step in to fill the leadership vacuum that Trump created—forcing folks in need across the world to turn to our adversaries, not us, for help.

    Let me be clear: USAID is an organization dedicated to doing good around the globe—but the good that it does also has a direct, tangible impact on the safety and economic security of families here at home.

    It is an organization that helps allies detect fentanyl—in part so we can stop it before it comes across our own borders.

    It’s an organization that help feeds starving families worldwide—but it does so using 2 billion dollars of food purchased from American farmers, with the paychecks going into their red, white and blue pockets so they can keep their family farms for another generation.

    It is an organization that helps stop global pandemics. And it’s an organization that works to make sure the poorest children in the poorest countries don’t die from drinking dirty water—a mission that also happens to be critical to our national strength, as when countries experience water insecurity, they’re more likely to undergo political instability as well, increasing the odds that their governments fail and power falls into the wrong hands—a sequence of events that often leads to the kind of immigration crisis we’re already facing at our border.

    I know there is waste, fraud and abuse in our government—and I am all for rooting that out. In fact, I’ve written and passed legislation to do just that.  But eliminating an entire agency with such a vital mission is not the way to go about this.

    USAID makes up just 1% of our federal budget. And these short-sighted cuts will end up costing the American taxpayer even more in the long term, as there will be more global instability, more migrations crises, more pandemics to contend with as a result of this frankly idiotic decision.

    It’s ironic. The guy charged with making our government more efficient is making it more costly and more chaotic. Case in point: He’s threatening to use American troops to bring home USAID workers if they don’t leave their overseas posts in the next 30 days—a move that in itself would cost Americans an estimated 100 million dollars.

    Elon Musk is unelected, unvetted and unqualified—he does not have the legal authority to dismantle entire agencies. Yet in Trump’s America, the size of his bank account and how far he is willing to bend the knee is enough for our President to bestow on him unchecked power.

    Musk is willing to bow down to Trump’s throne made of fool’s gold and false promises. So in return, Elon gets to run wild, run rampant.

    He for some reason gets to have full access to Americans’ social security numbers and Veterans’ personal information—for what reason, no one knows and all of us should fear.

    He gets to hijack our systems to enrich himself rather than the middle class.

    He gets to stomp on those in need, then fire anyone who dares stand up for what’s right—or what’s legal.

    Trump and Musk are not bringing back the good ole days of Ronald Reagan. Reagan believed in international aid. He is the one whose name is on the front of USAID’s building.

    They aren’t making America great. They’re making it authoritarian. And we should all be asking ourselves—if we let them gut USAID, then what’s next?

    The answer is the Department of Education. And then your Social Security. Your Medicaid. The things you and your families need to get by are right behind.

    Look, Trump ran his campaign on the idea of lowering costs for the middle class. He said he’d reverse inflation on day one. Well, day one has come and gone. So has day two, three, four.

    Here we are, weeks in, and all he’s done is take actions that have hurt everyday Americans to help his rich buddies afford another private jet. Under his wise stewardship, egg prices have skyrocketed. Inflation remains sky-high. A needless trade war seems to be getting closer every day, which could raise the price of gas and groceries even further. And all of us are in greater danger from bad actors the world-over.

    Enough is enough. Enough was enough a very long time ago. Donald Trump is unchecked. The scales of our government have become unbalanced. Every day those scales tip more and more away from serving the needs of the working class and toward feeding the greed of the billionaires who pal around with the President on the golf course.

    It was Ronald Reagan who once said, quote: “[T]he genius of our constitutional system is its recognition that no one branch of government alone could be relied on to preserve our freedoms… The great safeguard of our liberty is the totality of the constitutional system, with no one part getting the upper hand.”

    Reagan also described the Constitution as a “covenant” — a covenant that, quote: “[W]e have made not only with ourselves, but with all of mankind.”

    Today, I am asking my Republican colleagues to honor the covenant so cherished by their own conservative hero, Ronald Reagan. I am asking them to heed his words. To heed his warning. To heed his plea to us all.

    Under Donald Trump, our government is not of, by or for the people. It is of, by and for the people with the deepest pockets. “E pluribus unum,” “out of many one,” is supposed to signify the strength of our union—the solidarity of our nation.

    Do not let Donald Trump pervert it to mean that out of the many people, he is the only one who matters.

    To my colleagues on the other side of the aisle: All I am asking of you today is to do the jobs you were elected to do. 

    All I am begging for is that you make good on the oath you took when you were first sworn into this chamber: To support and defend our Constitution.

    Trump is acting as if he believes that the Constitution is just an old, yellowing piece of paper that he can crumble up at his will. My colleagues, you know better. And you know your constituents deserve better. 

    Please, find the courage to stand up and say so. It’s the least each of us can do for the country that we are lucky enough to have been elected to protect.

    You can do that, today, by voting no on Trump’s latest unqualified, unfit cabinet nominee, Russell Vought:

    A man who doesn’t even care to hide that he will happily rubber-stamp Trump’s worst instincts. 

    -30-

    MIL OSI USA News –

  • MIL-OSI Russia: IMF Press Briefing Transcript – Julie Kozack

    Source: IMF – News in Russian

    February 6, 2025

    INTERNATIONAL MONETARY FUND PRESS BRIEFING

    Washington, D.C. Thursday, February 6, 2025

    P R O C E E D I N G S

    1. KOZACK: Good morning, everyone. It’s great to see you all, here in person and online. Welcome to the first IMF press briefing for 2025. I’m Julie Kozak, Director of the Communication Department. As usual, this briefing is embargoed until 11:00 a.m. U.S. Eastern Time. I’ll start with a few announcements and then I’ll move to take your questions in person, on WebEx, and via the Press Center.

       First, Managing Director Kristalina Georgieva will travel to Ethiopia, the United Arab Emirates, and Saudi Arabia. The Managing Director will visit Ethiopia on February 8th and 9th to meet Prime Minister Abiy and his team, and this visit will take stock of the economic reforms and progress that is being made by the country. She will also meet with stakeholders, including representatives of the private sector.

    The Managing Director will also travel to the United Arab Emirates to participate in the Arab Fiscal Forum on February 10th and the World Government Summit on February 11th where she will deliver keynote remarks. On February 16th and 17th, the Managing Director will participate in a two-day conference in Saudi Arabia on building resilience of emerging market economies. The conference is co-organized by the IMF and the Saudi Finance Ministry.

    The First Deputy Managing Director Gita Gopinath will travel to Japan to join the Article IV mission. She will participate in meetings with the authorities and hold a press conference on February 7th at 10:30 a.m. Tokyo time.

    Finally, Deputy Managing Director Okamura will travel to Japan to participate in a jointly organized IMF-JICA conference on Economic and Fiscal Policy Challenges and Prospects for Asia. And this is scheduled for February 12 and 13.

    And with that I will now open the floor for your questions. For those connecting virtually, please do turn on both your camera and the microphone when speaking. Let’s get started.

    QUESTIONER: Hi,I was just wondering, you mentioned Ethiopia. How concerned are you about sort of countries with large IMF programs which also receive a substantial amount of support from USAID, considering the recent executive order, countries like Ethiopia and Ukraine, for example. Thanks.

    KOZACK: Thanks very much. So with respect to your question, you know we are closely following the announcements and developments regarding USAID. At this stage it’s too early to gauge the precise impact on the countries that it supports. We’ll wait for clarity on the next steps, including any changes to the scope of the work of USAID.

    QUESTIONER: So, the IMF mission is going to start working in Ukraine this month. Could you specify please what main issues will the Fund plan to focus on during the Seventh Review of the EFF program. And the second question is about the pension reform in Ukraine. Ukrainian government committed to starting this reform this year. Could you elaborate on what key changes the IMF expects from Ukraine on this area? Thank you.

    KOZACK: Are there any other questions on Ukraine?

    QUESTIONER: So, according to latest information, the review of the EFF is scheduled to begin this month. When the decision on the disbursement is going to be made and what amount of funds are going to be provided with this fund? And the follow-up, how much money is left in the EFF according to the current situation? Are there any plans to expand this program? Thank you.

    QUESTIONER: Just to follow up on the question about Ethiopia. Obviously, the USAID cuts also affect Ukraine pretty significantly. And I wonder, you know, both in those cases and in all cases involving USAID funding, whether you are working with the US ED here and sort of sending a message about the impact. So, whether you’ve kind of figured it out across the enterprise and across all the countries that the IMF works with as well. Thanks.

    KOZACK: Anything else on Ukraine online? Okay. So, on Ukraine, just to remind everyone of the context. So, on December 20th, the IMF’s Executive Board approved the Sixth Review of the EFF program. That enabled the disbursement of $1.1 billion and that brought total disbursements under the program to $9.8 billion. And the total size of the program, I believe, was $15.6 billion. So, the difference between those two is what would be remaining. At that time, the Board assessed that program performance remained strong. The authorities had met all of the benchmarks and prior actions for the review.

    With respect to the next mission, the technical work for the upcoming review is underway. The mission dates are in the process of being finalized, and once we have them, we’ll be sure to communicate that. During this upcoming mission, the IMF staff will engage with the authorities on fiscal policy, including progress on revenue mobilization, monetary policies for 2025, and also progress in ensuring that debt sustainability and fiscal sustainability are restored. Staff will also be reviewing governance reforms, which remain a key pillar for the program. Based on the approved calendar of disbursements, subject to completion of the next review and, of course, subject to Board approval, Ukraine would have access to about $900 million for that next review.

    With respect to pension reform, the government has committed to launch pension reforms this year in 2025, and they would be spearheaded by the Ministry of Social Policy. And those reforms are supported by external partners, notably the World Bank. What I can also add is that the authorities are in the process of developing a comprehensive set of proposals for pension reforms, but it’s too early to tell exactly what will be included in those proposals and what the changes may be.

    And on the second question, I don’t really have much to add to what I already said, other than obviously we’re paying close attention and we’re awaiting further details.

    QUESTIONER: Hi, good morning. Thank you for taking my question. Just on Syria, can you give us an update if the IMF has made any contact with the new government and if there are any plans to provide a loan package to the country? Thank you.

    KOZACK: We’re closely monitoring, obviously, the situation in Syria, and we stand ready to support the international community’s efforts to assist Syria’s reconstruction as needed and when conditions allow. With respect to our engagement, we have not had a meaningful engagement with Syria since 2009, which was the time of the last Article IV Consultation, and this has been due to the difficult security situation in the country.

    QUESTIONER: I have two questions, and they’re Caribbean-related questions. Can you provide a breakdown of the growth projections for the Caribbean region, more specifically, focusing on St. Kitts and Nevis, and what factors are driving the projected growth or decline outlook for the region, more specifically, the Caribbean region?

    KOZACK: Okay. All right, let me step back and give a little bit of an overview of where we stand, what our view is on the Caribbean. So, following the rapid recovery after the Pandemic, real GDP growth in the region has normalized in recent years. Average GDP growth for the region, and this is excluding Guyana and Haiti, is estimated at 2.2 percent for 2023, 2.4 percent for 2024. And growth, our projection is for growth to remain relatively stable at 2.4 percent in 2025.

    Broadly speaking, there are sort of two groups of countries in the Caribbean. So, we look at tourism-dependent economies, and there we see that growth in tourism economies has slowed as tourism arrivals have returned to pre-Pandemic levels. And then for commodity-exporting countries, they have faced challenges in the energy sector but have overall benefited from robust performance in their non-energy sector, and that has been driven by supportive and economic policies.

    I can also add that inflation in most Caribbean countries has moderated significantly over the past few years, and the decline was due to lower global commodity prices and easing of supply chain disruptions. And we expect inflation to remain moderate in the years to come.

    QUESTIONER: My question is on the comment by Managing Director Georgieva in Davos. MD mentioned in Davos clearly that more cooperation in the regional levels might be needed in the future in such a fragmented world and IMF would support such a movement. And could you give me some more detailed plans?

    KOZACK: Thanks very much for the question. What the Managing Director noted in Davos is that we are seeing shifting patterns in global cooperation, in trade, and in other areas, including financial and capital flows. And of course, as a global institution, what will be important for us is as we engage with our membership, right, to take all of this into account to ensure that we can give our members the best policy advice within our mandate of economic and financial stability.

    QUESTIONER: Thanks so much, Julie. I wanted to ask you very broadly about the changes that are happening in the United States and the tariffs that President Trump has announced. Now the implementation of the tariffs on Canada and Mexico has been delayed to March 1st. And, you know, it’s not clear what will happen there exactly. But one of the, you know, the tariffs on China have stayed in place. China has now announced tariffs that will kick in on February 10th. The IMF has warned repeatedly against rising protectionism and also kind of cataloged the thousands of trade restrictions that have been put in place and growing over time since COVID. Can you just walk us through what your perception is right now? The markets have been really all over the place, you know, sort of up and down depending on the day’s mood. Do you see this period of trade uncertainty that you warned about in the WEO, kind of really affecting and dampening global growth prospects? Thanks.

    KOZACK: Thanks very much. Let me see if anyone else has questions on this broad topic.

    QUESTIONER: Thank you. Yeah, I was just wondering, just to follow on the previous question, how you sort of think about the unpredictability of of these tariffs or the discussions around the tariffs, the uncertainty that that kind of brings up, and potentially how that could affect monetary policy. We’ve seen a lot of analysts talking about how they no longer expect the Fed to cut, or they expect the Fed to cut maybe only once this year. I’m just sort of wondering how you’re kind of in real time or as close to real time as you can, sort of taking on board that unpredictability when you think about the U.S. economy and the impacts for global growth. Thanks.

    KOZACK: Great. And you also had a question.

    QUESTIONER: Yes. Just following up with my colleagues. What sort of study, if any, has the IMF undertaken to better understand the global ramifications of these tariffs? We know they’re on pause for another 30 days or so or less. And what sort of impact would small states that are heavily dependent on the United States feel going forward?

    KOZACK: And let me go online to see if anyone online has a question along these lines.

    QUESTIONER: It is very similar. Just wondering the fact that it’s not just tariffs that have imposed on China, but the threat of tariffs on countries across the EU, Canada, and Mexico, and what effect that has on the global outlook. Thank you.

    KOZACK: Okay. Thank you. Anyone else online want to come in on this topic? Okay. So, what I can say on this issue is we’re following the announcements by the U.S. with respect to tariffs on Chinese goods and potentially Canadian and Mexican goods. We’re following these announcements. We believe that it’s in the interest of all to find a constructive way forward to resolve this issue.

    With respect to the assessment, assessing the full impact of these measures of tariffs, it’s actually going to depend on several factors, and let me lay those out. One of those factors is going to be the responses of the countries concerned. Another factor will be how firms and consumers react. And finally, how the measures evolve over time will also have an impact.

    So, at this stage, that’s what I can share with you. We will, of course, have more information over time and in due course as the situation evolves.

    QUESTIONER: Julie, I’m sorry, I think the question is, like, can you say something about what uncertainty does to the global economy? I mean, you’ve talked about this in WEO’s before, but do you see this as a period of heightened uncertainty now that Trump has taken office? And, you know, what is the impact of that uncertainty on things like investment and all this, you know, the sort of categories of economic indicators that we look at?

    KOZACK: So, I think what I can say is, of course, I would refer you to the WEO for some of those analysis. And again, assessing the full impact of this will include all of the factors that I just laid out. And we would take into account issues related to uncertainty, market reactions, et cetera, in an assessment that we will ultimately undertake as the situation evolves and once we have more information.

    Let me now go online. I see a couple of hands up. So, if you’re online, please go ahead and jump in.

    QUESTIONER: Hi, good morning. Thank you for taking my question. Well, has the letter of intent between the IMF and Argentina been prepared? Or let me ask in a different way. Are the negotiations between Argentina and the IMF already in the final stage?

    KOZACK: Thanks. Other questions on Argentina?

    QUESTIONER: Could you give me any updates on the negotiations of the new agreement and what are the most challenging issues they are facing right now? And also yesterday, Minister Luis Caputo said a new agreement will not imply a devaluation of the peso or the exit of the exchange restrictions the next day. Does the IMF agree with this statement?

    KOZACK: Thanks. Others on Argentina?

    QUESTIONER: Hi, Julie. I was wondering also if you could give some input regarding the meetings that the mission in Buenos Aires had, if they have only been talking to government officials or if they are also contacting unions and other opposition representatives. And also, the new crawling peg of 1 percent has started this February. I was wondering if that was a matter of discussion between the staff and the government.

    KOZACK: Thanks, other questions?

    QUESTIONER: Yes, thank you, Julie. So, my question is also on the crawling peg. So, is the IMF concerned about the greater exchange rate delay generated by this reduction of the crawling peg from 2 percent to 1 percent started the 1st of February?

    KOZACK: Any other questions on Argentina? Okay, I hear two more. Please go ahead.

    QUESTIONER: Hi, Julie, I wanted to know if Argentina has already paid a debt due on February 1st or when is it expected to do so? And if there is a meeting plan between Argentina authorities and the IMF network staff in Washington.

    KOZACK: Thank you. Next.

    QUESTIONER: Good morning. The question is if Argentina and the IMF comes to a new agreement, should it be like we are talking here in Argentina about $5 million? It will be for anything special, for example, to leave what we call cepo, or it depends on the Argentine authorities.

    KOZACK: Any other questions on Argentina? Okay, I do not see anyone coming in.

    So, on Argentina, what I can share is first that, as the Managing Director highlighted after her meeting with President Milei last month, we recognize Argentina’s tremendous progress in reducing inflation, stabilizing the economy, returning to growth, and with poverty finally starting to decline. We continue to engage constructively with the Argentine authorities. And a staff mission did recently visit Buenos Aires to advance discussions on a new program. The new program will aim to build on the gains that have been achieved so far, while also addressing the remaining challenges that the country faces. Constructive and frequent discussions continue, and we will provide further details on next steps when we have them.

    I can also just add that to sustain early gains, there is a shared recognition between the Fund staff and the Argentine authorities about the need to continue to adopt a consistent set of fiscal, monetary, and foreign exchange policies while furthering growth-enhancing reforms. I also know that you have a lot of interest, and there were a lot of detailed questions here, but given that the discussions are continuing and there has been good progress so far, we do want to ensure that there is space for staff and the authorities to continue these constructive discussions. And of course, we will communicate more when we have further details.

    Okay, let us go online because I see a few hands up.

    QUESTIONER: My question is, when do we expect Board of Directors to discuss Egypt Fourth Review?

    KOZACK: Do we have other questions on Egypt?

    QUESTIONER: Hi, I’d like to ask, in addition to that, when the board does discuss Egypt’s Fourth Review, will it also be discussing an additional RSF for Egypt? There have been some reports that Egypt is in line to receive as much as $1 billion.

    KOZACK: Other questions?

    QUESTIONER:  I just wanted to ask, in terms of the assessment of Egypt, but also other countries in the region, to what extent you are calculating additional costs and spending needs that have to do with Gaza and with the potential absorption of Palestinian refugees that has been proposed.

    KOZACK: Okay, any other questions on Egypt? I see I have two questions that have come through the press center, which I will read aloud. So, the first is when will the IMF’s Executive Board complete the Fourth Review of the Extended Arrangement under the Extended Fund Facility for Egypt?

    The second question is regarding the Executive Board’s approval of the Fourth Review of Egypt’s program, could it be this month? Does the IMF have updates on your projections for Egypt’s economy in light of regional updates?

    Let me share with you where we are on Egypt. On December 24, the IMF staff and the Egyptian authorities reached a staff-level agreement on the Fourth Review of the EFF. This review is subject to approval of our Executive Board and subject to that approval, Egypt would have access to about $1.2 billion. Preparations for Board consideration are underway, and the Board meeting is expected to take place in the coming weeks.

    In light of the difficult external conditions and challenging domestic environment, the IMF staff and the Egyptian authorities agreed to recalibrate the fiscal consolidation path, and this was agreed in December, I would highlight, to create fiscal space for critical social programs benefiting vulnerable groups and the middle class while ensuring debt sustainability.

    Looking forward, reform priorities comprise lowering inflation, sustaining exchange rate flexibility, and liberalized access to foreign exchange. In addition, the program aims to boost domestic revenues. It aims to improve the business environment. It aims to accelerate disinvestment or divestment rather and leveling [of] the playing field between state-owned enterprises and the private sector. And of course, it also aims to enhance governance and transparency.

    With respect to the question on the RSF, a policy package of reforms will be considered by the Fund’s Executive Board along with the Fourth Review of Egypt’s program.

    And lastly, there is no connection at the moment between some of the announcements in Gaza and the and the Egypt program.

    QUESTIONER: Hi, I wonder if I can just clarify. On the RSF, you say a policy package of reforms that also presumably comes with some additional funding. Can you confirm whether the amount of up to $1 billion is accurate?

    KOZACK: I can’t confirm now the precise amount of the RSF, but of course as we have more information, we will provide that.

    QUESTIONER: Thank you so much.

    KOZACK: Let us go online. I see another hand online and then we will come back. Just one follow up, a follow up. Go ahead.

    QUESTIONER: You cannot confirm the amount of the RSF. So just so we are clear, are you confirming that there are discussions around an RSF? Thanks.

    KOZACK: Yes, there’s discussions on an RSF and the intention is to present the RSF with its package of reforms to our Executive Board at the same time as we present the Fourth Review of the EFF.

    QUESTIONER: Question about Rwanda and Eastern Congo. I wanted to know, I know that the IMF has programs with both Rwanda and the DRC. And I wanted to know, you know, given the M23 incursion, the fall of Goma, how the programs can react to it, if there is anything you can say about that. And also, obviously, in El Salvador, they changed their cryptocurrency law, but it is also reported that they recently bought 50 bitcoins. So, some people are for the kind of national treasury. Some people are confused in terms of what the contours of the limitations put on. And I wonder if you could comment on that. Thanks a lot.

    KOZACK: Okay, thank you. Any other questions on these countries? DRC, Rwanda, El Salvador?

    Okay, let me start with DRC and I want to start by saying that, you know, we are deeply saddened by the loss of lives and the humanitarian crisis in the Eastern part of DRC. We are closely monitoring the situation, including its potential impact on neighboring countries and the region. And of course, we are also closely monitoring with respect to potential impact on our program.

    With respect to Rwanda, what I can say on Rwanda is simply that the country continues to demonstrate a robust commitment to advancing policy reforms. And In December of 2024, our Executive Board concluded the Fourth Review of Rwanda’s programs.

    With respect to El Salvador, just to step back and remind, IMF staff and the Salvadorian authorities reached a staff-level agreement on December 18th for a new arrangement, a new EFF arrangement. The arrangement would be for about $1.4 billion to support the government’s reform agenda, and this agreement is subject to approval by the IMF’s Executive Board.

    I can also add that as explained in the press release that we issued following the staff-level agreement, the new Fund supported program aims to reduce the potential risks of the bitcoin project. Once in place, purchases of bitcoin will be confined under the program as agreed.

    QUESTIONER: Thank you, Julie. Good morning, everyone. A few things. In Zimbabwe, when you expect a deal for the Staff Monitored Program? And on Lebanon, have you had any contact with the new government? Are there any signs that you are going to be able to work with them? Also on Senegal, can you give us any update on the resolution of the suspension of the financing program there? And lastly, are there any concerns of a drop in the commitment of funding from the U.S.? The 2025 project calls for the U.S. to stop putting money into the World Bank and the IMF. So, are you guys concerned about that?

    KOZACK: Okay, thanks. Starting with Zimbabwe, I do not have an update for you for today on Zimbabwe, but we will come back to you bilaterally.

    On Lebanon, what I can share is that, you know, we welcome the election of General Aoun as president of Lebanon, and we look forward to working with him and his new government to address the challenges facing the Lebanese economy. And just to remind, Lebanon continues to face profound economic challenges, and the conflict had exacerbated an already fragile macroeconomic and social situation. The election of the president, the formation of a new government, as well as the ceasefire, are critical to support policy actions and reforms that would allow the gradual return to the normalization of economic activity in Lebanon.

    And what I can share on Senegal is that we are actively engaged in discussions with the authorities on addressing the misreporting case. Senegal’s Court of Auditors is expected to issue its final report this month. In parallel, IMF staff are working closely with the authorities to identify their capacity development needs and to implement corrective measures needed to address the root causes of the misreporting. These efforts are aimed at enhancing transparency, strengthening accountability, and preventing a recurrence of similar misreporting in the future.

    And I think, on your final question, all I can say here is that the United States is the IMF’s largest shareholder, and it plays an extremely valuable role in helping ensure global financial stability. We have a long history of working with successive U.S. administrations, and we look forward to continuing to do so.

    QUESTIONER: Thanks, Julie. Thank you for taking my question. When do you think we can expect the Executive Board’s approval on the next tranche for the Island Nation? And if there is any delay, what sort of reason is there? Is there more for the government to do? And secondly, the budget for the country is expected in a few weeks. Has the IMF given any input on preparing this budget, given the fact that the country is still in the EFF program?

    KOZACK: Thanks. So, your question was on Sri Lanka? And yes, I see you nodding. So, if anyone else has questions on Sri Lanka, I can take them now. Okay. If not, let me go ahead with Sri Lanka.

    So, on Sri Lanka on November 23rd, IMF staff and the Sri Lankan authorities reached a staff-level agreement on the Third Review of Sri Lanka’s EFF program. Once approved by the IMF’s Executive Board, Sri Lanka will have access to about $333 million in financing. And we expect the Board meeting to take place in the coming weeks.

    Here, I would also just like to take the opportunity to emphasize that Sri Lanka’s ambitious reform agenda is delivering commendable outcomes. The economy expanded by 5.5 percent in the fourth — third quarter of 2024. Average headline and core inflation remain contained well below the target during the fourth quarter of 2024. And international reserves increased to $6.1 billion at the end of 2024.

    With respect to the specific question on the budget, what I can share is that the staff-level agreement that I mentioned, which was reached in November, will be presented to the Executive Board or is subject to Executive Board approval, but it’s also contingent upon, among other things, implementation by the authorities of prior actions, including submission of the 2025 budget that is consistent with parameters identified under the program.

    QUESTIONER: Most of the questions we had have been touched upon, and I would just reinforce as well what colleagues had said earlier about trying to get a sense of what all this uncertainty around tariffs will mean. I know there is a tendency to talk about the policies once they are implemented and the impact. But given the fact that policies get announced and withdrawn and swung around, it seems like the uncertainty has more of the impact than the actual policy. But all that seems to be covered. I will get to — actually, the only outstanding question we have now is if you could update us on the status of the Mozambique program and if there is a risk to that program’s existence right now, given what is going on. That is for our Africa colleagues. Everything else was covered. Thank you so much. I appreciate it.

    1. KOZACK: Thank you very much. So, on Mozambique, what I can share is that the Article IV Consultation and the Fourth Review of the Extended Credit Facility, or ECF, were completed back in July of 2024. An IMF team will visit Maputo in the coming weeks to engage with the new government. We do remain engaged to support the country’s efforts toward remaining macroeconomic stability, accelerating growth and making growth more inclusive, in line with the arrangements. But given that there is a mission in the coming weeks, we will have more to report toward the end of that engagement.

    QUESTIONER: Julie, regarding Russia, are there any developments concerning the postponed mission to Russia to evaluate progress in economy that was stopped in September due to necessity to gather additional information and make additional analysis. Anything we should expect this year, probably? Thank you.

    KOZACK: Unfortunately, I don’t yet have an update for you or a timeline for the Article IV.

    QUESTIONER: One final question. Thank you. Sorry, Julie, I’m going to try again with a sort of a similar question. But, you know, we are seeing a fundamental shift in the global and potentially in the support that is available for developing countries. The United States has ended foreign assistance. It has frozen funding for the World Food Program. It is pulling out of and talking about pulling out of the World Health Organization. These are institutions that are part, writ large, of the Bretton Woods system in which the IMF is such a key player.

    So, I do not think it’s unfair of us to be asking for some guidance from you about how you at an institution like the IMF are approaching this period of time that is marked by uncertainty, not just for the markets or for global trade, but also for the institutions themselves. And, you know, we have seen some initial reports that Elon Musk’s DOGE employees or people who work with DOGE are starting to look at the World Bank and other institutions.

    And I, you know, so I guess we want to hear something from you that is a little bit broader about the time that we’re in and what it means, because it obviously has implications for other countries, too, if they’re going to fill the gap in the developing thing. And, you know, you have been warning for years that the developing economies face a kind of perfect storm of different difficult circumstances. This seems like it adds to, to it. Thanks.

    KOZACK: Thanks very much. Look, what I can say now is really what I’ve been saying. I really do not have much to add other than that we are a global institution. We have a clearly defined mandate to support economic and financial stability globally and just ultimately support growth and employment in the world economy. We are continuing as an institution to remain laser-focused, of course, on that mandate. And we, as a global institution, take our responsibility to serve our membership very, very seriously. And we will continue to do everything that we need to do to serve our membership in the best possible way. You know, we do, as I said, have a long history of working with successive U.S. administrations, and we look forward to continuing to do so as an institution for which the U.S. is our largest shareholder.

    And with this, I’m going to bring this press briefing to an end. Thank you all for your participation today. As a reminder, this briefing is embargoed until 11:00 a.m. Eastern Time today. A transcript will be made available later on IMF.org, and as usual, in case of clarifications, additional queries, or anything else, please reach out to my colleagues at media@mf.org.

    This does conclude our first press briefing of the year. I wish everyone a wonderful day and I do look forward to seeing you next time. Thank you all so much for joining, and please be safe given the weather outside here in D.C. Thank you, everyone.

    * * * * *

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER:

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/02/06/020625-tr-imf-press-briefing-julie-kozack

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI USA: King to Senate Colleagues: “Now is the Time to Establish a Redline—the Constitution Itself”

    US Senate News:

    Source: United States Senator for Maine Angus King

    To watch the floor speech click here or download here

    WASHINGTON, D.C.— U.S. Senator Angus King (I-ME) today spoke on the Senate floor to share his growing concerns over the Trump Administration’s largely unconstitutional and unprecedented overreach — adding historical perspective to the decisions facing the Senate. In the speech, King also shared his position on Russell Vought, the nominee to become Director of the Office of Management and Budget (OMB):

    “We began our careers here with the following words, ‘I do solemnly swear that I will support and defend the constitution of the united States against all enemies foreign and domestic.’ 

    “When each of us arrived here in the senate, we took this oath to support and defend the constitution and as it says against all enemies foreign and domestic. I think it’s interesting that the framers concede that there might be domestic enemies to the constitution. Our oath was not to the Republican Party, not to the Democratic Party, not to Joe Biden, not to Donald Trump, but our oath was to defend the constitution. 

    “And right now — right now literally at this moment that constitution is under the most direct and consequential assault in our nation’s history. An assault not on a particular provision but on the essential structure of the document itself. It’s hard to grasp what is happening because of all the events that are swirling around us over the last several weeks. It’s coming from so many different quarters and so many different actors. It’s hard to get a picture of what’s really happening fundamentally. 

    “But this is an assault, and how we respond to it will define our life’s work, our place in history, and the future of our country. None of us will ever face a greater challenge. 

    “Before we get to the challenge, however, I think it’s important to ask why we have a constitution in the first place, why ours has so far stood the test of time. 

    “The answer to the first question, why have a Constitution in the first place, is contained in the preamble — we the people of the United States, in order to form a more perfect union, there’s number one, establish justice, number two, ensure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity do ordain and establish this constitution of the United States of America.’

    “You want to know what the Constitution is for? There it is. There’s the list — ensure domestic tranquility, provide for the common defense, ensure the blessings of liberty to ourselves and our posterity. 

    “But there’s a paradox at the heart of the creation of any government, whether it’s here or anywhere else on Earth, and anywhere else in history. There’s a paradox built in, because the essence of creating government is to give it power, give it our power, in order to look after us, in order to provide for the common defense, to ensure domestic tranquility, to provide justice to our people. 

    “In other words, we’re giving our power to this separate entity. But we have to do so with the realization that the power that’s being given has the potential to be abused. In other words, how do we give power to this entity, this government, and ensure that the government itself doesn’t use that power to abuse us as citizens? This is a question at the heart of all political discussion throughout history. 

    “The Romans even had a question that captured it. The question was, “quis custodiet, ipsos custodes?” It means who will guard the guardians? Who will guard those who we have given power to guard us? It’s a fundamental question that’s confronted every society and every government throughout history. 

    “Madison put it this way, and by the way he used a gender-specific term. I suspect if he were writing today it would be more broadly phrased. In the 51st federalist, ‘if men were angels, no government would be necessary. If angels were to cover govern men, neither internal nor external controls on government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this — you must first enable the government to control the governed.’ That’s the function. And in the next place, oblige it to control itself. 

    “Our framers understood this. They were deep students of history and also human nature. And they had just won a lengthy and brutal war against the abuses inherent in concentrated governmental power, George III. The universal principle of human nature they understood was this — power corrupts, and absolute power corrupts absolutely. That’s a universal principle, all over the world throughout history. Power corrupts, and absolute power corrupts absolutely. 

    “So how did they answer the question? How did they answer the question who will guard the guardians? They answered it by building into the basic structure of our government two essential safeguards. One was regular elections. In other words, returning the control of the government to the people on regular scheduled elections. By the way, this is what we learned in sixth grade, checks and balances. But the other piece that’s built into our system that’s the other essential safeguard is the deliberate division of power between the branches and levels of government.

    “This is important, Mr. President. The cumbersomeness, the slowness, the clumsiness is built into our system. The framers were so fearful of concentrated power that they designed a system that would be hard to operate. And the heart of it was the separation of power between various parts of the government. The whole idea, the whole idea was that no part of the government, no one person, no one institution had or could ever have a monopoly on power. 

    “Why? Because it’s dangerous. History and human nature tells us that. This division of power as annoying and inefficient as it can be, particularly to the executive, I know because I used to be a governor, is an essential feature of the system, not a bug. It’s an essential, basic feature of the system, designed to protect our freedoms. 

    “Now, this contrasts with the normal structure of a private business, where authority is purposefully concentrated, allowing swift and sometimes arbitrary action. But a private business does not have the army, and the President of the United States is not the CEO of America. 

    “Power is shared, principally between the President and this body, this Congress, both houses. In fact, this herky-jerkiness, the two houses, the war power divided between the President and Congress, this unwieldy structure is the whole idea. No one has or should ever have all the power. 

    “So the concern I’m raising today isn’t some academic exercise or manifestation of political jealousy or abstract institutional loyalty. It’s the guts of the system, designed to protect us from the inevitable. And I mean inevitable abuse of an authoritarian state, the inevitable abuse of an authoritarian state. It’s the guts of our protection. In fact, this clumsy system is the main spring of our freedom. By the way, it’s worked so far, so far, and distinguishes us from the historical norm.

    “We have to understand, we are an anomaly in history. The historical norm is pharaohs, kings, dictators, emperors, presidents for life. But the fact that we’re such an anomaly, and we’ve seen in our lifetimes other governments, other systems based upon ours slip into authoritarianism and dictatorship tells us how fragile what we have is. What we have in this country is an anomaly in history and it’s fragile, and it needs to be, must be, protected from generation to generation. This makes this moment all the more urgent and portentous. 

    “Now, the nominee before us today is one of the ring leaders of this assault, one of the ring leaders of the assault on our Constitution. He believes in a presidency of virtually unlimited powers. He’s written extensively about this. And explicitly rejects, for example, the exclusive power of congress to authorize and appropriate funds for the operation of the government. He espouses the discredited and illegal theory that the president has the power to selectively impound funds appropriated by congress, thereby rendering the famous power of the purse a nullity. I am not talking about the specifics and I will touch on A.I.D and other issues, but what I’m really worried about are the implications, the structural implications for our freedom and government of what’s happening here. 

    “We have to keep our eye on the big picture. Not all the confusion and smoke that’s going on over the last couple of weeks. Mr. Vought is one of the principal authors of the infamous Project 2025 which the President strangely hadn’t heard of during the campaign but now seems to be the essential guideline for his presidency. Project 2025 is nothing less than a blueprint for the shredding of the constitution and the transition of our country to authoritarian rule. He’s the last person who should be put in the heart of the operation of our government.

    “Again, this isn’t about politics. This isn’t about policy. This isn’t about Republican versus Democrat. This is about tampering with the structure of our government, which will ultimately undermine its ability to protect the freedom of our citizens. If our defense of the Constitution is gone, there’s nothing left to us. 

    “So Thomas Moore said, ‘I expected you to betray me, Richard, but for Wales?’ We should not betray the constitution for temporary expedient because we don’t like this or that agency. 

    “Now I want to speak to my Republican colleagues. It is your constitutional prerogative to confirm this nominee and any others. I do not question that right, only its wisdom. And this nominee is a place to say no to the undermining and destruction of our constitutional system. 

    “But don’t stand aside in the midst of these confirmations, ill-considered foreign policy pronouncements, flood of executive orders, none of which will do a thing about the price of eggs, cost of housing or availabilities of child care. Don’t get caught up in all of that and ignore the steady and not-so-slow usurpation of congressional authority and fundamental alteration of the framers’ scheme. 

    “My colleague who preceded me, speaking from the Republican side, bemoaned Congress’ lack of oversight and praised Elon Musk for doing what congress should have done. Maybe she’s right and Congress should have done it, and we should do it, but not give away that power, which will never come back. Once this door is open, it’s going to be very difficult to close it again, no matter who the president is. No matter who’s in charge. 

    “To my colleagues, are there no red lines? Are there no limits? 

    “Just in the past ten days, we’ve seen the literal destruction of a statutorily, I emphasize that word, statutorily established and funded federal agency by people ostensibly working for the president understand vague authority, no transparency, and no guidance from the congress. Did they come to the Foreign Relations Committee and say what do you think about A.I.D.? Are there parts to work with or be reformed? No, zero. 

    “This small group, and we don’t know who they are, but this small group apparently it’s reported in their 20’s have no experience with government, no experience with foreign aid, no experience with the operation of the United States government, but they’re making basically policy decisions and constitutional decisions. 

    “The Constitution does not give to the President or his designee the power to extinguish a statutorily established agency. I can think of no greater violation of the strictures of the Constitution or usurpation of the power of this body. None. I can think of none. Shouldn’t this be a red line? 

    “By the way, I find it especially galling to read the sneering comment from the richest man in the world that, quote, ‘we spent the weekend feeding said into the chipper.’ Describing an action that will literally take food from the mouths of starving children. Forget red lines. Do we have no decency? 

    “And then there is the executive order freezing funding, again, selectively, for programs the administration doesn’t like or understand. I mentioned that I was a former governor and I would have loved to have had this power, but it’s a fundamental violation of the whole idea of the Constitution, the separa[tion] of powers. 

    “To say that the executive, you can pick and choose which laws you like, which funding programs, the level of funding, you can impound if you don’t want to spend it. Richard Nixon tried to do that. He was rebuffed by the Congress who passed a specific statute, no impoundments. 

    “In addition to the chaos, the uncertainty and demonstrable damage which my colleagues have been outlining all day brilliantly, there’s nothing theoretical about cutting off funding to a rural health clinic, for example, or support for small farmers or grants to your fire department. But getting away from those specifics, it’s easy to get pulled into those, and my office is hearing calls every day, we can hardly handle the volume, this again, to underline, is a frontal assault of our power, your power, the power to decide where public funds should be spent. 

    “Isn’t this an obvious red line? Isn’t this an obvious limit? 

    “Or finally, and I picked a few examples, but my final example is the power seemingly assumed by DOGE to burrow into the treasury’s payment system, and now CMS for undefined purposes, zero oversight and raises questions up to and including threats to national security. Do these people have clearance? Are the doors closed? Are they going to leave open doors into these? What are the opportunities for our adversaries to hack into the systems? 

    “We’re already under unprecedented cyberattack and we’re opening doors, although it’s impossible to determine what they’re taking. Remember there’s no transparency or oversight. Access to social security numbers seem to be in the mix. All the government’s personnel files, personal financial data, potentially everyone’s tax returns and medical records. That can’t be good. That can’t be good. That’s data that should be protected with the highest level of security and consideration of Americans’ privacy. And we don’t know who these people are. We don’t know what they’re taking out with them. We don’t know whether they’re walking out with laptops or thumb drives. We don’t know whether they’re leaving back doors into the system. There is literally no oversight. The government of the United States is not a private company. It is fundamentally at odds with how this system is supposed to work. 

    “Shouldn’t this be an easy redline? 

    “In short, Mr. President, we’re experiencing in real time exactly what the framers most feared. When you clear away the smoke, clear away the DOGE, the executive orders, foreign pronouncements, more fundamentally what’s happening is the shredding of the constitutional structure itself. 

    “And we have a profound responsibility it seems to be based on that pesky oath that we all took, to stop it, to stop it. […] But stop what’s going on in terms of altering how our government is supposed to fundamentally function to protect our people. 

    “The power of the majority is with you, my Republican colleagues. Together, together we have the power to right the balance, to reclaim the authority we thought was inherent in our jobs, and in the process save our country. 

    “At a prior time of crisis, Abraham Lincoln defined the stakes for each of us, “Fellow-citizens, we cannot escape history. We, of this Congress, and this administration, will be remembered in spite of ourselves. No personal significance, or insignificance, can spare one or another of us. The fiery trial through which we pass, will light us down, in honor or dishonor, to the latest generation.

    “Now is the time to establish a redline—the Constitution itself.”

    MIL OSI USA News –

  • MIL-OSI USA: Senators Collins, King Join Colleagues in Calling for Prompt Implementation of Social Security Fairness Act

    US Senate News:

    Source: United States Senator for Maine Angus King

    WASHINGTON, D.C. – U.S. Senators Susan Collins and Angus King joined 26 of their Senate colleagues in sending a letter to the acting commissioner of the Social Security Administration (SSA) calling for the immediate implementation of the Social Security Fairness Act. This bipartisan legislation, which Senator Collins coauthored with former Senator Sherrod Brown (D-OH), and which was co-sponsored by King, will provide full Social Security benefits for millions of public servants impacted by the unfair Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The Social Security Fairness Act fully repealed the WEP and GPO and was signed into law on January 5, 2025.

    “The Social Security Fairness Act restores full Social Security benefits for the millions of teachers, police officers, firefighters, and other public servants who are unfairly penalized by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO),” the Senators wrote.

    “The Social Security Administration’s website currently states, ‘SSA expects that it could take more than one year to adjust benefits and pay all retroactive benefits’ owed under the Social Security Fairness Act. We call for the immediate implementation of this legislation to provide prompt relief to the millions of Americans impacted by WEP and GPO. In the interim, we request monthly updates and briefings regarding the status of the Social Security Administration’s progress towards implementing the Social Security Fairness Act,” the Senators concluded.

    In addition to Senators Collins and King, the letter was signed by Senators Bill Cassidy (R-LA), Dan Sullivan (R-AK), Lisa Murkowski (R-AK), Jerry Moran (R-KS), Shelley Moore Capito (R-WV), Deb Fischer (R-NE), Pete Ricketts (R-NE), John Fetterman (D-PA), Ben Ray Lujan (D-NM), Sheldon Whitehouse (D-RI), Alex Padilla (D-CA), John Hickenlooper (D-CO), Jon Ossoff (D-GA), Jack Reed (D-RI), Dick Durbin (D-IL), Jeff Merkley (D-OR), Jacky Rosen (D-NV), Kirsten Gillibrand (D-NY), Tim Kaine (D-VA), Cory Booker (D-NJ), Mark Warner (D-VA), Peter Welch (D-VT), Amy Klobuchar (D-MN), Richard Blumenthal (D-CT), Tammy Baldwin (D-WI), and Martin Heinrich (D-NM).

    The complete text of the letter can be read here and below.

    +++

    Dear Acting Commissioner King,

    We write to you concerning the implementation of the Social Security Fairness Act (Public LawNo: 118-273). This legislation passed Congress on an overwhelmingly bipartisan basis on December 21st, 2024 and was signed into law on January 5th, 2025. The Social Security Fairness Act restores full Social Security benefits for the millions of teachers, police officers, firefighters, and other public servants who are unfairly penalized by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

    The Social Security Administration’s website currently states, “SSA expects that it could take more than one year to adjust benefits and pay all retroactive benefits” owed under the Social Security Fairness Act. We call for the immediate implementation of this legislation to provide prompt relief to the millions of Americans impacted by WEP and GPO. In the interim, we request monthly updates and briefings regarding the status of the Social Security Administration’s progress towards implementing the Social Security Fairness Act.

    Thank you for your prompt attention to this important matter. We look forward to your response.

    MIL OSI USA News –

  • MIL-OSI USA: “We’re Experiencing in Real Time Exactly What the Framers Most Feared,” King says to Republican Colleagues

    US Senate News:

    Source: United States Senator for Maine Angus King

    WASHINGTON, D.C.— U.S. Senator Angus King (I-ME) shared his growing concerns over the Trump Administration’s largely unconstitutional and unprecedented overreach. In a speech on the Senate floor, King cited the Founding Fathers to add historical perspective to the decisions facing the Senate including the importance of keeping a separation of powers between the branches of government.

    “The framers were so fearful of concentrated power that they designed a system that would be hard to operate. And the heart of it was the separation of power between various parts of the government. The whole idea, the whole idea was that no part of the government, no one person, no one institution had or could ever have a monopoly on power,” King said. “Why? Because it’s dangerous. History and human nature tells us that. This division of power as annoying and inefficient as it can be, particularly to the executive, I know because I used to be a governor, is an essential feature of the system, not a bug. It’s an essential, basic feature of the system, designed to protect our freedoms. Now, this contrasts with the normal structure of a private business, where authority is purposefully concentrated, allowing swift and sometimes arbitrary action. But a private business does not have the army, and the President of the United States is not the CEO of America.”

    King then discussed the critical vulnerability of Congress relieving its duties to the administration in charge – an abdication that would be hard to reverse no matter what administration is next elected into office.

    “But don’t stand aside in the midst of these confirmations, ill-considered foreign policy pronouncements, flood of executive orders, none of which will do a thing about the price of eggs, cost of housing or availabilities of child care,” King continued. “Don’t get caught up in all of that and ignore the steady and not-so-slow usurpation of congressional authority and fundamental alteration of the framers’ scheme. My colleague who preceded me, speaking from the Republican side, bemoaned Congress’ lack of oversight and praised Elon Musk for doing what congress should have done. Maybe she’s right and Congress should have done it, and we should do it, but not give away that power, which will never come back. Once this door is open, it’s going to be very difficult to close it again, no matter who the president is. No matter who’s in charge. To my colleagues, are there no red lines? Are there no limits?”

    Lastly, he emphasized the ‘profound responsibility’ each member of the Senate has to respect the Oath they swore to the Constitution.

    “In short, Mr. President, we’re experiencing in real time exactly what the framers most feared. When you clear away the smoke, clear away the DOGE, the executive orders, foreign pronouncements, more fundamentally what’s happening is the shredding of the constitutional structure itself,” King concluded. “And we have a profound responsibility it seems to be based on that pesky oath that we all took, to stop it, to stop it. […] But stop what’s going on in terms of altering how our government is supposed to fundamentally function to protect our people.”

    Senator King has been continuously sounding the alarm on President Donald Trump’s existential threat to the Constitution: he declared that the proposal to halt all federal grant and loan disbursement was illegal and a direct assault on the Constitution. More recently, he joined 36 Senators in a letter to Secretary of State Marco Rubio, sharing the detrimental effects of  the Trump Administration’s dismantling of the U.S. Agency for International Development (USAID). He also joined fellow Senate Select Committee on Intelligence (SSCI) colleagues in writing a letter to the White House about the risks to national security by allowing unvetted Department of Government Efficiency (DOGE) staff and representatives to access classified and sensitive government materials.

    MIL OSI USA News –

  • MIL-OSI Security: Mexican National Sentenced To More Than 12 Months For Unlawful Possession Of Firearms

    Source: Office of United States Attorneys

    Jacksonville, Florida – U.S. District Judge Wendy Berger has sentenced Jose Cruz Cienega-Gaona (41, Mexico) to one year and one day in federal prison for possessing a firearm while unlawfully in the United States. Cienega-Gaona entered a guilty plea in November 2024.

    According to court documents, in May 2024, agents with the U.S. Customs and Border Protection began an investigation into Cienega-Gaona. Through their investigation, agents determined that Cienega-Gaona is a native and citizen of Mexico. Cienega-Gaona had been removed from the United States in 2006 and 2019 after it was determined he was illegally in the United States.

    On July 9, 2024, agents spoke with Cienega-Gaona at a gas station near his home and he was arrested for being illegally in the United States. While interviewing Cienega-Gaona, agents learned that he had guns in his home. Agents executed a search warrant at Cienega-Gaona’s home and found four guns and ammunition. Because Cienega-Gaona was in the United States illegally, he was prohibited from possessing firearms or ammunition under federal law.

    This case was investigated by U.S. Customs and Border Protection, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Elisibeth Adams.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI Security: Civil Forfeiture Action Filed In Federal Court Against Bronx Residence Used As Stash House For Firearms And Drug Trafficking

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

    Residence Located Steps Away from Elementary School was Used by Gang Members to Store Guns, Drugs, and Proceeds from Drug Trafficking

    Danielle R. Sassoon, the United States Attorney for the Southern District of New York; Bryan Miller, the Special Agent in Charge of the New York Field Division for the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”); and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today the filing of a civil forfeiture Complaint against a Bronx residence located at 3267 Decatur Avenue in the Bronx, New York.  The Complaint alleges that the residence was used by members of the “Drilly Gang” as a stash house for drug trafficking and firearms.

    U.S. Attorney Danielle R. Sassoon said: “As alleged, 3267 Decatur Avenue—a Bronx residence located steps away from an elementary school—was used by members of a gang as a stash house for drugs and firearms.  This civil forfeiture action seeking to seize the residence demonstrates that we will use all the tools available to protect the streets of this city.  Together with our law enforcement partners, we remain committed to the fight against gun violence and drug trafficking in our community.”

    ATF Special Agent in Charge Bryan Miller said: “Illicit drug trafficking destroys lives and fuels violence. Taking over a home, for the purpose of selling illegal drugs next to a school, while boasting about it on social media, demonstrates a blatant disregard for the safety of our communities. The ATF / NYPD Joint Firearms Task Force remains committed to dismantling criminal networks and protecting innocent people from the tragic consequences of violent crime. No one should have to live or work next to an illegal narcotics operation run by armed criminals. We will remain relentless in our efforts to keep our streets safe. I commend the dedication and hard work of the men and women of the Joint Firearms Task Force, NYPD 52nd Precinct, and SDNY for their efforts in this case.”

    According to the allegations in the Complaint filed in Manhattan federal court today and other court filings: [1]

    Since in or about April 2024, law enforcement agents with the ATF and the NYPD have been conducting an investigation into 3267 Decatur Avenue in the Bronx, New York, including members of a group known as the “Drilly Gang” that used 3267 Decatur Avenue as a stash house for drug trafficking and firearms.  The residence at 3267 Decatur Avenue is located steps away from an elementary school in the Norwood neighborhood of the Bronx.  Members of the Drilly Gang were using 3267 Decatur Avenue as a headquarter of operations, including as a location to film rap videos in furtherance of the Drilly Gang, which included depictions of drugs and weapons.  Members of the Drilly Gang also posted on social media photographs and videos depicting their involvement in the sale of drugs and possession of firearms, as depicted below:

    On or about November 4, 2024, law enforcement officers executed a search warrant at 3267 Decatur Avenue and recovered, among other things: a pistol magazine; 177.73 grams of cocaine; 33 grams of methamphetamine; 38 grams of fentanyl; 65 grams of psilocybin mushrooms; and 240 grams of marijuana. Investigators also found drug packaging materials, which were designed to make the drugs look like candy (i.e., Welch’s Fruit Snacks, Skittles, Peanut Buddy Bars, etc.) and approximately $1700 in U.S. currency. Depicted below are some of the items seized from 3267 Decatur Avenue:

    *                *                *

    Ms. Sassoon praised the outstanding investigative work of the ATF and the NYPD.

    This case is being handled by the Office’s Violent and Organized Crime Unit and Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Andrew K. Chan and Frank J. Balsamello are in charge of the prosecution.

    [1] As the introductory phrase signifies, the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

    MIL Security OSI –

  • MIL-OSI Submissions: Gaza and West Bank – “Inflicting harm and denying care” in the West Bank: MSF report on escalation of attacks and obstructions of healthcare

    Source: Medecins Sans Frontieres/Doctors Without Borders (MSF)

    Jerusalem, 6 February 2025 – Israeli forces and settlers have increased the use of extreme physical violence against Palestinians in the occupied West Bank since the all-out war on Gaza began in October 2023, according to a new report by Medecins Sans Frontieres/Doctors Without Borders (MSF). 

    In total, at least 870 Palestinians have been killed and over 7,100 injured between October 2023 and January 20251. According to the MSF report, “Inflicting harm and denying care”, the escalation of violence in the West Bank has severely hindered access to healthcare and is part of a pattern of systemic oppression by Israel which has been described by the International Court of Justice (ICJ) as amounting to racial segregation and apartheid.

    The report which covers a one-year period from October 2023 and 2024, provides in-depth interviews from 38 MSF patients and personnel, hospital staff paramedics and volunteers supported by MSF who report prolonged and violent Israeli military incursions and stricter movement restrictions, all of which have severely hindered access to essential services, particularly healthcare. The situation has further deteriorated since the ceasefire in Gaza and has exacerbated dire living conditions for many Palestinians who are paying an immense physical and psychological toll.

    “Palestinian patients are dying because they simply cannot reach hospitals,” says Brice de le Vingne, MSF emergency coordinator. “We’re seeing ambulances blocked by Israeli forces at checkpoints while carrying critical patients, medical facilities surrounded and raided during active operations, and healthcare workers subjected to physical violence while trying to save lives.”

    An increased number of attacks on medical personnel and facilities have been reported to MSF teams, including attacks on hospitals, destruction of makeshift medical sites in refugee camps, as well as the harassment, detention, injury, and killing of first responders and medical workers by Israeli forces. Between October 2023 and December 2024, WHO has recorded 694 attacks on healthcare in the West Bank, with hospitals and healthcare structures often besieged by military force. Healthcare workers express a feeling of insecurity as they are frequently harassed, detained, injured and even killed.

    “Israeli forces surrounded the stabilisation point [in Tubas], closing both its entrances, even though it was very clear that this was a medical building. They ordered all the paramedics to exit the stabilisation point. There were around 22 of us paramedics there. Israeli soldiers shot inside and outside the building, damaging our supplies and the stabilisation point,” says a medic from the Palestinian Red Crescent Society, supported by MSF.

    In case of medical emergency, restrictions of movement can have deadly consequences. Access to healthcare in this context has been severely impeded by the obstruction and targeting of ambulance movements and the escalation of violent military raids resulting in injuries, fatalities and the destruction of vital civilian infrastructure, including roads, healthcare, water pipelines and electrical systems, particularly in Tulkarem and Jenin refugee camps. In remote areas and outskirts of cities like Jenin or Nablus, the situation is especially dire, as patients with chronic conditions, such as

    those who need regular dialysis treatment, are forced to stay home due to the untenable obstacles to reaching healthcare.

    On top of the frequent Israeli military incursions, settler violence and the ever-increasing expansion of settlements has left many Palestinians vulnerable to violence and afraid to move across the West Bank. In total, 1,500 attacks by Israeli settlers against Palestinians have been reported by OCHA between October 2023 and 2024.

    As the occupying power, Israel has legal obligations under international law to ensure access to healthcare and protect medical personnel. The healthcare system in the West Bank is under immense strain and forced into a state of perpetual emergency.

    MSF calls Israel to stop the violence against healthcare workers, patients and health facilities and to stop obstructing medical personnel from performing lifesaving duties.

    MIL OSI – Submitted News –

  • MIL-OSI Australia: Homemade firearms, gel blaster seized during Preston search

    Source: Tasmania Police

    Homemade firearms, gel blaster seized during Preston search

    Friday, 7 February 2025 – 9:12 am.

    Two homemade firearms and an imitation firearm were seized during a targeted search at an address in Preston in the state’s North- West.
    Members of Western Drugs and Firearms Unit as well as specialist police resources executed a search warrant at the address on Thursday 6 February, locating and seizing a modified .22 calibre rifle, a home-made 12-gauge slam gun and a gel blaster Glock.
    Police also located ammunition and drug paraphernalia. 
    Investigations are ongoing and police are following a specific line of inquiry in relation to the seized weapons.
    Anyone with information about illegal firearms should contact police on 131 444 or Crime Stoppers anonymously on 1800 333 000 or online at crimestopperstas.com.au
    Under Tasmania’s permanent firearms amnesty, people can surrender illegal and unwanted firearms, firearm parts, ammunition, or gel blasters that have the appearance of a firearm, without being prosecuted for the possession.

    MIL OSI News –

  • MIL-OSI Australia: Appointment of acting Commissioner NT Fire and Emergency Services

    Source: Northern Territory Police and Fire Services

    Ms Collene Bremner has been announced as the Acting Commissioner of NT Fire and Emergency Services (NTFES), while current Commissioner Andrew Warton embarks on a sabbatical overseas.

    Ms Bremner who has served as the Executive Director of Bushfires NT since 2016, brings over 20 years of experience in the Northern Territory Public Service. Her extensive background in emergency management has seen her lead the response to numerous significant events locally and interstate.

    Throughout her career, Ms Bremner has held numerous senior roles, including as Chair of the Australian and New Zealand Emergency Management Recovery Sub-Committee, the NT representative on the Australian and New Zealand Emergency Management Committee, and as a board member of the National Aerial Firefighting Centre (NAFC). She is also a member of NAFC’s Strategic Committee under the Australian Fire Authorities Council (AFAC).

    Ms Bremner will bring a wealth of knowledge to the role and is committed to leading the service and protecting Territorians during times of crisis.  Chief Minister and Minister for Fire and Emergency Services, Lia Finocchiaro directly appointed Ms Bremner to act in the role from 15 February 2025.

    Mr Warton is taking leave to embark on a once in a lifetime experience as Station Leader at Australia’s Casey Research Station in Antarctica. There he will lead a team of expeditioners and support crucial scientific research through the Antarctic winter.

    Casey Station is one of three Australian research stations in Antarctica and the selection process is long and comprehensive with roles like Station Leader highly sought after and very competitive. Due to the length of the selection process and how far in advance applications are taken, this sabbatical was a known factor when Mr Warton was appointed Commissioner NT Fire and Emergency Services in 2024.

    During his sabbatical, Mr Warton will remain in contact with NTFES staff and volunteers and will provide regular updates to his team during his time away.

     Acting arrangements will remain in place until Commissioner Warton’s return later in the year. His return will depend on the logistics of accessing Casey Research Station, which becomes generally inaccessible during the Antarctic winter.

    The recent formation of the NT Fire and Emergency Services, which combines the NT Fire and Rescue Service, NT Emergency Service, and Bushfires NT into one agency, enhances our ability to respond to emergencies while prioritising community resilience. For more information on the service, visit Welcome | NT Police, Fire & Emergency Services

    For more information on Casey Research Station, visit Antarctic operations – Australian Antarctic Program

    Quotes from Commissioner, Andrew Warton:

    “Leading an emergency services organisation and an Antarctic station may seem worlds apart, but both rely on teamwork, resilience, recognition of community and a commitment to something bigger than ourselves. Whether facing emergencies or keeping a remote station running, success comes down to ordinary people doing extraordinary things. It is an honour to lead the Northern Territory Fire and Emergency Services and I’m grateful for the opportunity to undertake this short-term experience, and to bring new perspectives on leadership back to the Northern Territory.”

    “I am pleased to announce Ms. Collene Bremner as Acting Commissioner of NTFES today. Collene’s leadership experience and involvement in both local and national emergency management efforts will ensure that the service continues to operate effectively. I am confident that NTFES staff and the community are in capable hands.

    Quotes from Collene Bremner:

    “I am honoured to have the opportunity to lead the NT Fire and Emergency Services.  I have a long association with the operational arms of the Northern Territory Fire and Emergency Services and am excited to continue to lead the ongoing development of the new agency during Andrew’s time in Antarctica.”

    Media contact:

    Rickie Abraham

    0400 814 524

    MIL OSI News –

  • MIL-OSI Security: Air Ronge — Saskatchewan RCMP seizes one kilogram of cocaine in Air Ronge

    Source: Royal Canadian Mounted Police

    Saskatchewan RCMP’s La Ronge Crime Reduction Team (CRT) seized one kilogram of cocaine during a traffic stop in Air Ronge, SK.

    On February 2, 2025 at approximately 1 a.m., RCMP officers with the La Ronge CRT initiated a traffic stop on a vehicle at the intersection of Far Reserve Road and Mikisiw Drive.

    During the traffic stop, officers determined the female driver’s license had been suspended and a male passenger had an active warrant for his arrest. As officers were arresting the wanted male, they located and seized a small amount of cocaine. Officers proceeded to arrest the driver of the vehicle and two remaining occupants – a male and a female.

    While searching the vehicle, officers located and seized approximately one kilogram of cocaine, a handgun, ammunition, a baton, and additional drug trafficking paraphernalia.

    As a result of investigation, the following individuals are facing multiple firearms and drug charges:

    • Keannu Starnyski, a 19-year-old male from Sucker River, SK
    • Katelynn Charles, a 27-year-old female from Stanley Mission, SK
    • Freda Charles, a 24-year old female from La Ronge, SK
    • Gary Roberts, a 32-year-old male from Sucker River, SK

    Keannu Starnyski, Katelynn Charles, Freda Charles and Gary Roberts are each charged with:

    • one count, possession for the purpose of trafficking – cocaine, Section 5(2), Controlled Drugs and Substances Act;
    • one count, unsafe storage of firearms, Section 86(2), Criminal Code;
    • one count, possession of a firearm when knowing possession unauthorized, Section 92(1), Criminal Code;
    • one count, possession of a firearm in motor vehicle, Section 94(1), Criminal Code;
    • one count, possession of a restricted firearm/prohibited weapon with ammunition without license/registration, Section 95(2), Criminal Code; and
    • one count, possession of a firearm with serial number removed, Section 108(1)(b), Criminal Code.

    Additionally, Keannu Starnyski is facing one count, possession of a firearm contrary to order, Section 117.01(1), Criminal Code; and one count, fail to comply with probation orders, Section 733.1(1), Criminal Code.

    Gary Roberts is also facing one count, possession of a firearm contrary to order, Section 117.01(1), Criminal Code.

    Keannu Starnyski, Katelynn Charles, Freda Charles, and Gary Roberts made their first appearance in provincial court from La Ronge on February 3, 2025.

    MIL Security OSI –

  • MIL-OSI Security: Madison Man Sentenced to 3 Years for Possessing a Machinegun

    Source: Office of United States Attorneys

    MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Andre Miller Jr., 24, Madison, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 3 years in federal prison for possessing a machinegun. Miller pleaded guilty to this charge on November 8, 2024. The prison term will be followed by 3 years of supervised release.

    On October 27, 2021, Town of Madison Police Department officers responded to a reported stolen vehicle parked in Madison. Miller was identified as the driver of the stolen vehicle. When an officer attempted to make contact with Miller, he fled. When officers caught up with Miller, they saw a gun magazine in the backpack he had been carrying. Officers then searched Miller’s backpack and recovered a loaded Glock 26 9mm handgun with a machinegun conversion device. A machinegun conversion device is an illegal, after-market device that converts a semi-automatic handgun into a fully functioning machinegun. In the backpack, officers also located 48 grams of cocaine and 10 grams of heroin.

    “Machinegun conversion devices are extraordinarily dangerous,” said U.S. Attorney Timothy M. O’Shea. “These devices are often used in weapons that are not designed to function as machine guns, thus making the weapons incredibly difficult to aim. Discharging a weapon equipped with such a device in a public area endangers every child and adult within range. Keeping these illegal devices off the streets in Wisconsin and keeping our citizens free of fear from these weapons is one of my highest priorities,” said O’Shea.

    At sentencing, Judge Conley said that he found it very troubling that Miller was going around with a machinegun that was connected to drug trafficking.

    The charge against Miller was the result of an investigation conducted by the Town of Madison Police Department and the ATF Madison Crime Gun Task Force consisting of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorneys Steven P. Anderson and William M. Levins prosecuted this case.

    This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.

    MIL Security OSI –

  • MIL-OSI Security: Boston Man Sentenced ro Five Years in Prison for Trafficking More Than Two Dozen Illegal Firearms into Boston

    Source: Office of United States Attorneys

    BOSTON – A Boston man was sentenced today in federal court for conspiring to traffic dozens of illegal firearms from South Carolina to Boston.

    Aizavier Roache, 31, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison, to be followed by three years of supervised release. In October 2024, Roache pleaded guilty to one count of firearms trafficking and conspiracy.

    The investigation arose after a firearm recovered from a shooting in Boston was identified as having been purchased in South Carolina 15 days prior. Over a three-year period, Roache and his co-conspirator Trevon Brunson, conspired to traffic dozens of illegal firearms from South Carolina to Massachusetts. Specifically, Roache would text Brunson photos of the firearms he wanted. After purchasing the firearms in South Carolina, Brunson would meet Roache at different locations in Columbia, S.C. to transfer the firearms.

    Numerous text messages as well as bank, travel and firearm records detailed the conspiracy. Intercepted communications uncovered an instance were Brunson used Roache’s credit card to complete a multi-gun purchase because he didn’t have enough cash on hand, during which Roache texted Brunson the pin number for the card. Additionally, a video recovered from Roache’s phone showed him on a bus showing off a carry-on bag that contained four firearms. The date of the video corresponded with Roache’s trip back to Massachusetts after a multi-gun purchase in April of 2023.  

    In total, the defendants trafficked more than 24 illegal firearms into Massachusetts from South Carolina. Eleven of the trafficked firearms were recovered in Massachusetts after being used in a crime.

    Brunson pleaded guilty in October 2024 and is scheduled to be sentenced on March 21, 2025.

    United States Attorney Leah Foley; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
     

    MIL Security OSI –

  • MIL-OSI Security: Montgomery Man Sentenced to 15 Years in Prison Following Federal Drug and Gun Convictions

    Source: Office of United States Attorneys

               MONTGOMERY, Ala. – Today, Acting United States Attorney Kevin Davidson announced the sentencing of a Montgomery, Alabama man following federal drug and gun convictions. On February 5, 2025, a federal judge sentenced 37-year-old Richard Eugene Moore, Jr., to 180 months in prison. In addition, the judge ordered that Moore serve three years of supervised release following his prison term. Federal inmates are not eligible for parole.

               According to the plea agreement and other court records, on September 20, 2023, an Alabama state trooper attempted to stop a vehicle in the city of Montgomery after observing a traffic violation. Inside the vehicle was a male driver, two female passengers, and a toddler. The driver, later identified as Moore, refused to stop. A pursuit ensued and the trooper observed Moore throwing objects out of the driver-side window. Moore continued to flee through a residential area, often driving at a high rate of speed. The pursuit ended when Moore ran a stop sign and struck an unmarked police car. Moore then attempted to flee on foot but was apprehended just a few feet from the vehicle. All four occupants of the vehicle, including the toddler, sustained minor injuries. The police officer in the unmarked vehicle sustained more serious injuries and was hospitalized for several days.

               Investigators recovered the items discarded by Moore during the pursuit. The items included a Glock handgun and a backpack. Moore has prior felony convictions and is prohibited from possessing a firearm or ammunition. Inside the backpack, investigators found several bags of suspected marijuana and a digital scale. Laboratory analysis confirmed the substance in the bags to be marijuana.

               On September 16, 2024, Moore pleaded guilty to possessing marijuana with the intent to distribute the illegal drug and to possessing a firearm in furtherance of a drug trafficking crime. Moore also enter a plea of guilty to being a felon in possession of a firearm.

               “On a weekday afternoon, Moore led law enforcement on a high-speed chase through the streets of Montgomery when school traffic was at its peak,” said Acting United States Attorney Davidson. “This type of reckless behavior cannot be tolerated. The 15-year sentence ordered by the judge was completely justified due to Moore’s total disregard for the safety of everyone on the road that day, including law enforcement and his passengers.”

               The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Alabama Law Enforcement Agency, and Montgomery Police Department investigated this case, which Assistant United States Attorney Brandon W. Bates prosecuted.

    MIL Security OSI –

  • MIL-OSI Security: Montgomery Man Sentenced to Federal Prison for Possessing a Machinegun Conversion Device

    Source: Office of United States Attorneys

               Montgomery, Ala. – On February 5, 2025, 24-year-old Domonique McKee, from Montgomery, Alabama, received a sentence of 60 months in prison for possession of a machinegun, announced Acting United States Attorney Kevin Davidson. Following his prison sentence, McKee will serve three years of supervised release. There is no parole in the federal system. 

               According to his plea agreement and other court records, on December 2, 2023, a Montgomery police officer stopped a vehicle suspected of containing illegal narcotics. The officer identified McKee as the driver and conducted a search of the vehicle. In addition to finding a substance suspected of being methamphetamine, law enforcement found three handguns, numerous rounds of ammunition, and multiple magazines, including extended capacity magazines. One of the handguns seized was equipped with a machinegun conversion device. On September 25, 2024, McKee pleaded guilty in federal court to possessing a machinegun.

               “When installed on a firearm, a machinegun conversion device, or ‘switch,’ allows a gun to function as a fully automatic weapon capable of firing a continuous spray of bullets with a single pull of the trigger,” said Acting United States Attorney Davidson. “The mere possession of a machinegun conversion device, regardless of whether it is installed on a firearm, is a federal crime. My office will continue to prioritize the prosecution of those carrying these dangerous devices and to work with our law enforcement partners to remove them from our communities.” 

               The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Montgomery Police Department investigated this case, with assistance from the Drug Enforcement Administration (DEA). Assistant United States Attorney Justin L. Jones prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Madison Couple Sentenced for Methamphetamine and Cocaine Trafficking

    Source: Office of United States Attorneys

    MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Yelitzia Ortiz Chaparro, 29, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 3 years in federal prison for distributing methamphetamine. Her husband, Emanuel Gonzalez, 25, Madison, Wisconsin, was sentenced on February 4, 2025, by Judge Peterson to 8 years in federal prison for possessing 500 grams of more of cocaine intended for distribution. Gonzalez pleaded guilty to this charge on November 4, 2024. Ortiz Chaparro pleaded guilty to the methamphetamine charge on November 6, 2024.

    Between November of 2022 and February of 2023, Ortiz Chaparro sold cocaine to a confidential source working with the Drug Enforcement Administration on three occasions for a total of 362 grams. On March 17, 2023, Gonzalez and Ortiz Chaparro worked together to deliver one pound of methamphetamine to the confidential source in Madison.

    On May 9, 2024, and again on May 15, 2024, Gonzalez sold cocaine to a second confidential source for a total of 198 grams. On June 13, 2024, the second confidential source contacted Gonzalez in order to purchase one pound of methamphetamine.  During a telephone call with Gonzalez and Ortiz Chaparro to set up the deal, Ortiz Chaparro told the second confidential source that the price for the methamphetamine was $2,100. Later that day, Gonzalez delivered one pound of methamphetamine to the second confidential source in Madison.

    On July 15, 2024, the second confidential source contacted Gonzalez and negotiated the purchase of two ounces of cocaine. Later that day, Gonzalez delivered 56 grams of cocaine to the second confidential source in Madison.

    On July 18, 2024, agents executed a federal search warrant at Gonzalez and Ortiz Chaparro’s residence in Madison. Prior to the search, agents arrested Gonzalez and found $9,660 on his person. During the search of the master bedroom of the residence, agents found nearly a kilogram of cocaine in a closet and a loaded 9mm Smith & Wesson handgun in a dresser drawer. Agents also found $8,600 inside of a safe in a second bedroom. Agents performed a firearms trace on the recovered 9mm Smith & Wesson handgun and discovered that Gonzalez had purchased it in 2020.

    At the sentencing hearing for Ortiz Chaparro, Judge Peterson stated that the large amounts of drugs she distributed for a significant period of time made it a very serious crime. Judge Peterson noted that the while the evidence showed that Gonzalez initially got Ortiz Chaparro involved in drug trafficking, she quickly “leaned into” selling significant quantities of drugs on her own.

    At the sentencing hearing for Gonzalez, Judge Peterson stated that the evidence showed that Gonzalez had been responsible for distributing large amounts of illegal drugs prior to selling drugs to the confidential sources during the investigation. Judge Peterson also stated that Gonzalez made the situation worse by keeping a loaded firearm in an unlocked dresser drawer that was accessible to his young child and in close proximity to a large amount of cocaine.

    The charges against Gonzalez and Ortiz Chaparro were the result of an investigation led by the Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the Wisconsin Department of Justice Division of Criminal Investigation, Wisconsin State Patrol, and the Madison Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Aaron Wegner handled the prosecution. 

    MIL Security OSI –

  • MIL-OSI Security: Man Who Fired Shots Into the Air Outside San Angelo Home Sentenced to 2.5 Years for Gun Crime

    Source: Office of United States Attorneys

    A man who fired shots outside a San Angelo residence was sentenced to 30 months in prison for a federal gun crime, announced Acting U.S. Attorney for the Northern District of Texas Chad Meacham.

    Edgar Eduardo Gamez-Rodriguez, a 22-year-old citizen of Mexico, was indicted in September 2024 and pleaded guilty in October 2024 to illegal alien in possession of a firearm. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix.

    According to a plea papers, at around 5:05 a.m. on Oct. 1, 2023, law enforcement responded to a call of “shots fired” outside a home in San Angelo. Witnesses, who were attending a party there, reported that Mr. Gamez-Rodriguez had fired several rounds from a handgun into the air.

    A sheriff’s office incident report details how Mr. Gamez-Rodriguez – intoxicated and irate at having his keys taken away – pulled out his gun, racked the slide, and pointed it straight at two musicians who’d been hired to play at the party. He climbed into his vehicle, then fired four to six shots into the air before driving off, according to multiple witnesses. He later allegedly told a partygoer he “knows people” who could “shoot up” the house.

    According to plea papers, law enforcement later executed a search warrant at Mr. Gamez-Rodriguez’s residence, where they recovered a Taurus 9mm semi-automatic handgun along with two 9mm magazines. In the drawer where the gun and ammunition were stored, they found an employment contract with Mr. Gamez-Rodriguez’s signature and the keys to his vehicle.

    Officers also reviewed Mr. Gamez-Rodriguez’s facebook profile photo, which showed him holding a black handgun.

    A query of the defendant’s immigration records showed that he was a citizen of Mexico based on his birth in Acuna, Coahuila, Mexico. Mr. Gamez-Rodriguez had never been given permission to enter or remain in the United States, and had been removed to Mexico previously via Laredo.

    After serving his sentence, Mr. Gamez-Rodriguez will once again face deportation proceedings.

    Homeland Security Investigation’s Dallas Field Office and the Tom Green County Sheriff’s Office conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, & Explosives. Assistant U.S. Attorney Jeff Haag prosecuted the case. 

    MIL Security OSI –

  • MIL-OSI USA: Rep. Simpson Votes to Fight Fentanyl Crisis

    Source: US State of Idaho

    Rep. Simpson Votes to Fight Fentanyl Crisis

    Washington, February 6, 2025

    WASHINGTON— Today, Idaho Congressman Mike Simpson voted in favor of H.R.27 – the Halt All Lethal Trafficking of (HALT) Fentanyl Act. This legislation permanently extends President Trump’s 2018 Schedule I classification of fentanyl-related substances and gives law enforcement the tools they need to keep Americans safe from dangerous illicit drugs.
    “We cannot afford to waste any time in the fight against the fentanyl crisis, which is devastating families and communities across the country,” said Rep. Simpson. “As President Trump takes decisive action to halt the flood of this deadly drug pouring across our southern border, Congress is also working to combat this epidemic, remove fentanyl from our streets, and give our brave law enforcement officers the tools they need to save American lives. I was proud to support this bill, which is an important step in tackling this crisis.”
    The HALT Fentanyl Act passed with a vote of 312-108. The full text of the bill is available here.

    MIL OSI USA News –

  • MIL-OSI Security: Louisville Man Sentenced to Over 8 Years in Federal Prison for Cocaine Distribution and Firearm Offense

    Source: Office of United States Attorneys

    Louisville, KY – A local man was sentenced this week to 8 years and 1 month for conspiracy to possess cocaine with intent to distribute, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime.

    U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Paul Humphrey of the Louisville Metro Police Department made the announcement.

    According to court documents, Roger Bailey, 42, was sentenced to 8 years and 1 month in prison, followed by 3 years of supervised release, for conspiracy to possess cocaine with intent to distribute, possession of cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Between April 9, 2024, and May 29, 2024, Bailey conspired with other persons to possess with intent to distribute cocaine by selling cocaine on four occasions.  On May 29, 2024, a residential search warrant was executed on Bailey’s residence located at 441 South 29th Street, Louisville, Kentucky. During the search, cocaine, a Mossberg, Model MMR, 5.56 caliber rifle, a Glock, Model 19, 9-millimeter pistol, an American Tactical Imports, Model Omni Hybrid, multi-caliber pistol, and ammunition were found and seized.

    There is no parole in the federal system.   

    This case was investigated by the ATF with assistance from the Louisville Metro Police Department.

    Assistant U.S. Attorney Erwin Roberts is prosecuting the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.   

    ###

    MIL Security OSI –

  • MIL-OSI USA: VIDEO: Hickenlooper Calls Out Vought’s Project 2025 Agenda on Senate Floor, Vows to Use Every Tool to Fight

    US Senate News:

    Source: United States Senator John Hickenlooper – Colorado

    Hickenlooper: “It’s time to use every tool at our disposal to disrupt what Mr. Vought and his Project [2025] are trying to do.”

    Senate Democrats held the Senate floor overnight to oppose Vought’s nomination

    WASHINGTON – Today, U.S. Senator John Hickenlooper spoke on the Senate floor against the nomination of Russell Vought, President Trump’s pick to lead the Office of Budget and Management (OMB). Hickenlooper’s remarks come ahead of the final confirmation vote, where he will vote “No” on Vought.

    “If confirmed, Mr. Vought and Project 2025 could have devastating consequences for Colorado,” Hickenlooper said on the Senate floor.

    “…At a time when grocery prices are rising on everything from eggs to meat, Project 2025 is going to make life harder for Colorado farmers and ranchers – and more risky,” he continued. “Project 2025 would cut safety nets for our Ag producers when they have a bad season…Hanging small farmers out to dry does nothing to lower grocery prices for [Americans].”

    “…I will oppose every nominee that poses a genuine threat to Coloradans. That’s why I’m here on the floor and will vote “No” on Mr. Vought today.”

    “…It’s time to use every tool at our disposal to disrupt what Mr. Vought and his Project [2025] are trying to do.”

    The OMB oversees the performance of federal agencies and administers the federal budget. Vought previously served as acting OMB director during President Donald Trump’s first term and was a primary architect of Project 2025, which details MAGA Republicans’ far-right agenda to dismantle the federal government under a Trump administration.

    Last week, in response to an executive order from President Trump, the OMB ordered a freeze on all federal grants and loans. The pause threatened hundreds of millions of dollars in federal funding, which would have impacted thousands of organizations in Colorado and hurt millions of Americans. 

    On Monday, a federal court issued a restraining order against the Trump administration, extending a temporary pause on the President’s plan.

    More information about how a freeze would impact Coloradans is available HERE.

    Yesterday, Hickenlooper posted a video to social media where he commits to use every tool at his disposal, including opposing any nominees who will harm Colorado, to disrupt the administration’s illegal actions. This morning, Hickenlooper joined Democrats in holding the Senate floor overnight to oppose Trump’s nominee.

    To download a full video of Hickenlooper’s remarks, click HERE. A full transcript of his remarks is available below:

    “Mr. President,

    “I take to the floor today to urge my colleagues to vote “No” on President Trump’s nominee to the Office of Budget and Management, Russell Vought.

    “Some remember Mr. Vought from when he served as the head of the same agency during President Trump’s first term. He is one of the very few “repeat” appointments – clearly a reflection of his loyalty.

    “You may also know him for his leadership – his authoring – of Project 2025, that far-right agenda that the President – during the campaign – swore up and down he had no idea about. 

    “And I believe that, although I think he understood many discussions, perhaps outlined the framework.  

    “Project 2025 would gut our longstanding and globally admired framework of checks and balances. It would gut them.  It would ensure civil servants would be hired and fired on the basis of political loyalty – something that this country has struggled for many decades to get rid of.

    “It would truly weaponize our system of justice. Again something that almost everyone works towards keeping nonpartisan.

    “It lays out in detail a plan to dramatically change our American system of government – perhaps for a very long time.

    “It’s really not a question of “if” anymore. The plan and the people putting it in place are disregarding laws and norms dating back to the Constitution. They are throwing everything at the wall to see what sticks.

    “This means firing or pushing out vast swaths of the federal workforce of civil servants. These are career civil servants, many of whom have devoted their lives to keeping our government running – from processing social security checks, and keeping our weather systems afloat, or helping to stop waste, fraud and abuse.

    “Some would say our federal workers don’t do anything. But they are honest, hard-working Americans.

    “Project 2025 is just getting started. If confirmed, Mr.Vought and Project 2025 could have devastating consequences for Colorado.

    “Deep in Project 2025 are plans to heavily restrict access to contraceptives and abortion medication, denying women and families the freedom to make their own reproductive decisions. 

    “Plans to make health care more expensive by repealing policies that empower Medicare to negotiate prescription drug prices and drive down the cost of health care for seniors.

    “Plans to make Colorado less resilient to these increasingly frequent disasters caused by extreme weather.

    “And they’re already reinstating cruel immigration policies, and threatening to come after the LGBTQ+ community.

    “At a time when grocery prices are rising on everything from eggs to meat, Project 2025 is going to make life harder for Colorado farmers and ranchers – and more risky. 

    “Project 2025 would cut safety nets for our Ag producers when they have a bad season. It includes plans to gut essential crop insurance. Project 2025 even wants government to get involved in the specific techniques our ranchers use to farm.

    “Now, our Colorado farmers know their land better than anyone else. Hanging small farmers out to dry does nothing to lower grocery prices for America. 

    “We’ve been hearing in our offices from producers across the state who are very concerned about what this Project 2025 means to them. We have over 38,000 farm operations in Colorado. Some harvest wheat, some raise meat or poultry, some specialize in dairy. All of them help support our rural communities and play an essential role in feeding families really all across the country.

    “We don’t have to speculate about what Mr.Vought would do to the Office of Management and Budget – he’s really laid it all out in Project 2025. He wrote Project 2025 to a large extent himself.

    “One of his finest contributions: a section championing the Executive Branch’s ability to overreach and “impound funds.”

    “Let’s not mince words: This is, by all historic measures, blatantly unconstitutional.

    “Congress alone has the authority to decide how the government spends its money.

    “This isn’t an opinion. It says explicitly in Article I, Section 9, Clause 7: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.”

    “Made by law, designated by Congress.

    “And again in Article I, Section 8, Clause 1: “Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States.”

    “We got a taste of how Mr. Vought would attempt to execute something like this last week.

    “In a truly chaotic late-night, two-page memo, the Trump administration halted all federal grants and loans. We’re talking about hundreds of millions of dollars in federal spending for a staggering number of programs. Programs that provide Americans health care, food, nutrition, housing, child care, so much else.

    “The memo stemmed from an executive order calling on federal agencies to review and eliminate spending on “woke” ideologies or “The [Green New] Deal” – both things that aren’t clearly defined and don’t in any specific way exist. 

    “In this rush to create chaos and jumbled policy, the implementors didn’t bother to specify which programs would continue and which programs would end. 

    “Our office and staff were immediately flooded with calls. Hundreds and then thousands of calls. We heard from folks in every corner of Colorado – big cities, small towns – asking ‘what does this mean’ for them and their families. There was real fear, real worry, and for good reason.

    “The Trump administration tried to walk back the original memo to clarify that the freeze wouldn’t affect individual payments, like Social Security or food stamp benefits.

    “But that didn’t clear up too much. And it certainly didn’t help that the White House Press Secretary couldn’t answer specific questions like pertaining to specific government programs like Medicaid, whether they were going to be affected. Frustrating as it is – and I get how frustrating it is – there are reasons why government moves slowly. 

    “All of this, if implemented as requested, would’ve had a devastating impact on Colorado. A devastating impact.

    “Federal programs and funds make up roughly 25 percent of our state’s effort to build transportation and infrastructure, provide needed services for the most needy in our state. 

    “Head Start, a truly vital service for over 9,000 low-income kids in Colorado, would be forced to shutter its operations that provide for these low-income kids of all communities with the early childhood education, health, and nutrition that they need. Even as we speak, there are reports that Head Start providers around the nation are not able to access funds.

    “If implemented it would cut off 83,000+ low-income Colorado families from the Low Income Home Energy Assistance Program (LIHEAP), which helps heat their homes in the cold winter. These are folks that in many cases are unable to pay their heating bills or wouldn’t be able to heat their homes without this assistance.

    “Our public safety and law enforcement would be weakened. The pause would strip funding that helps our local agencies prevent terrorism, helps them crack down on drug trafficking, and prevent crimes and provide services for those who have been victimized by crime.

    “Colorado has one of the largest veteran populations in the country, something we’re very proud of. But this funding [pause] would cut resources for those vets. It would cut resources for community-based suicide prevention efforts, organizations that provide care for veterans experiencing homelessness, and services for veterans living with disabilities – many of them taken in the defense of our nation. Hard to be cruel to those who have given their country so much.

    “Before entering public service, I was in the restaurant business. At our brewpub in downtown Denver, we’d cook, pack, and donate meals every year to Meals on Wheels to feed seniors throughout the Metro Denver area. I’ve seen firsthand the difference this makes, the relief it provides to seniors who need it. Many of them don’t leave the house, and are so grateful to have someone come and they can talk to as they get their meal. 

    “But the federal funding freeze left Meals on Wheels in Colorado, but all across the country, unsure of how and whether they’ll be able to continue serving meals. Over 25,000 Coloradan seniors everyday rely on Meals on Wheels to access food. Why would we leave our seniors hungry and unsure of where their next hot lunch is going to come?

    “Our office also heard directly from a Colorado rural health organization about how this federal funding freeze would have life-or-death effects on Coloradans in 47 rural counties. 

    “When we’re in towns like Cortez or Hugo or Julesburg, we hear all the time about how our rural hospitals, clinics, and community health centers are already strained by workforce shortages, by rising costs. 

    “These medical providers are on the frontlines of dealing with our nation’s mental health and opioid crisis. And we’re cutting their ability to provide these services.

    “These folks in rural Colorado, and in suburbs around every city in Colorado, are watching their friends, family, and neighbors struggle with mental health issues that rose up after the pandemic.  

    “This funding freeze wouldn’t just strip funding from these programs. It would force our critical rural hospitals to lay off staff or turn away patients at a time when they need it the most.

    “We should be fighting to increase access to quality, affordable health care no matter where people live – not take it away.

    “The federal funding freeze has already been blocked by the courts several times because it is blatantly illegal. It makes no sense.

    “But make no mistake, Mr. Vought and the Trump administration will keep poking and prodding our courts and our Constitution until they get their way.  

    “All of these actions serve a sinister purpose: to completely transform our government into one that gives enormous, enormous tax cuts, largely directed at those who don’t need them – and in many cases in Colorado don’t want them – and puts working-class Americans out to pasture.

    “The federal funding freeze is just one of many chaotic actions that Mr.Vought and the administration are pushing. We see Project 2025 come into clarity in this administration’s illegal attempts to dismantle agencies without congressional approval, or their attempts to access Americans’ sensitive data.

    “Look, I’m all for cutting government waste. If you want to seriously look at how we spend money and where we can cut actual fraud, waste, and abuse – I’m game. A more efficient government will help us all, but that’s not what’s happening. 

    “I’ve worked as hard as I could to find ways to work across the aisle, and that’s not going to change. When I was Mayor of Denver, when I was Governor of Colorado, we balanced the budget every year and we worked hard to try and streamline government processes. Just like every mayor and every governor in this country.

    “You can’t just shove working families under the bus or violate the law to do it.

    “We’ll fight these attempts in the courts, on the floor of the Senate – like now – and everywhere else we can to defend Colorado and the Constitution.

    “It’s time to use every tool at our disposal to disrupt what Mr. Vought and his Project [2025] are trying to do. We’ve supported these lawsuits, opposed executive actions, and voted against nominees. 

    “But if we need to hold the Senate floor like we’re doing now, vote all night, disrupt business as usual, we’ll do that too.

    “I will oppose every nominee that poses a genuine threat to Coloradans. That’s why I’m here on the floor and will vote “No” on Mr. Vought today.

    “Coloradans sent us to Washington to solve problems, not to create more. Project 2025, it’s a brutal plan to wreak havoc on our nation, and really change the way our government operates, the way our democracy functions. 

    “I hope people all over the state emulate that old movie “Network”, that they can shout out on every corner, “I’m mad as hell, and I’m not going to stand for it!”

    “Let’s hope they get so loud that they can’t be drowned out.

    “Mr. President, I yield back the floor.”

    MIL OSI USA News –

  • MIL-OSI USA: Baldwin Leads Colleagues on Bill to Close Tax Loophole and Make Wall Street Pay Its Fair Share

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin

    WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) led thirteen of her colleagues in introducing the Carried Interest Fairness Act to eliminate a tax loophole that benefits wealthy money managers on Wall Street. The current carried interest loophole allows investment managers to often pay almost half the tax rate compared to most other Wisconsin workers.

    “Wall Street investors should not be paying less in taxes than Wisconsin firefighters, teachers, and small business owners. But right now, the wealthiest Americans are gaming our tax system to get out of paying their fair share, passing their tax burden onto working Wisconsinites,” said Senator Baldwin. “Closing the carried interest loophole will ensure super-wealthy Americans do their part, reducing the deficit and increasing fairness in our tax code. As President Trump has previously said, this loophole is ‘unfair to American workers’ and I look forward to working with him to finally close it.”

    The carried interest loophole allows investment managers to pay the lower 23.8 percent capital gains tax rate on income received as compensation, rather than the ordinary income tax rates of up to 40.8 percent that they would pay for the same amount of wage income. The Carried Interest Fairness Act requires carried interest income to be taxed at ordinary wage rates. According to the Treasury proposal, closing this loophole will raise $6.5 billion in revenue over 10 years.

    Despite President Donald Trump previously saying, “…we will eliminate the carried interest deduction and other special interest loopholes…”  during the 2016 election, his 2017 Tax Cuts and Jobs Act “failed to eliminate [the] key deduction used by wealthy investment firms that Trump had vowed to kill,” leading PolitiFact to rate this a “Promise Broken.” Senate Republicans rejected an amendment to the tax bill by Senator Baldwin to close the loophole, which all Senate Democrats supported in 2017.

    The bill is co-sponsored by Senators Chris Van Hollen (D-MD), Patty Murray (D-WA), Brian Schatz (D-HI), Ed Markey (D-MA), Amy Klobuchar (D-MN), Tim Kaine (D-VA), Jeff Merkley (D-OR), Jack Reed (D-RI), Peter Welch (D-VT), Elizabeth Warren (D-MA), Cory Booker (D-NJ), Bernie Sanders (I-VT), and Mazie Hirono (D-HI). Representative Marie Gluesenkamp Perez (D-WA-03) also introduced this bill today in the U.S. House of Representatives.

    The legislation is endorsed by Communications Workers of America, Americans for Tax Fairness, the American Federation of Teachers (AFT), Public Citizen, American Federation of State, County and Municipal Employees (AFSCME), Alliance for Retired Americans, Americans for Financial Reform, Take on Wall Street, Patriotic Millionaires, 20/20 Vision, Main Street Alliance, American Federation of Government Employees, Small Business Minority, Economic Policy Institute, and the National Women’s Law Center.

    “The carried interest loophole is an expensive subsidy of the billionaire executives who are raiding the public purse right now to pay for their next private island,” said Porter McConnell, Senior Director of Take on Wall Street at Americans for Financial Reform. “We commend Senator Baldwin for her leadership on closing this egregious loophole so that working families can stop subsidizing ultra wealthy hedge fund and private equity executives.”

    “The carried interest loophole is an unfair Wall Street tax break that enriches billionaires who end up paying lower tax rates than teachers, nurses, and firefighters.” said Oscar Valdés Viera, research manager at Americans for Financial Reform. “We applaud Senator Baldwin for her unwavering leadership in introducing the Carried Interest Fairness Act and urge the Senate to swiftly move on this legislation.”

    “The carried interest loophole gives a class of the wealthy elite – hedge fund managers and executives – an enormous and unfair advantage by allowing them to pay a significantly lower tax rate on their compensation than working- and middle-class Americans. Senator Baldwin’s Carried Interest Fairness Act would work to close this loophole, enhancing tax fairness, narrowing the growing wealth gap, and providing crucial revenue for investments in the American people,” said Casey Conroy, Senior Fiscal Policy Analyst at 20/20 Vision.

    “Small business owners work hard every day to keep their doors open, staff on payroll and shelves stocked. Meanwhile, investment managers pay a lower tax rate than Main Street because of a ridiculous loophole. Main Street Alliance and our 30,000 members strongly support Senator Baldwin’s Carried Interest Fairness Act. Our tax code should focus on supporting the 20 million new small business owners who have started since 2020, not glitzy hedge funds,” said Richard Trent, Main Street Alliance Executive Director.

    “There are a lot of economically and morally unjustifiable tax loopholes that disproportionately benefit wealthy people like me, but the carried interest loophole may just take the cake. Ultra-wealthy hedge fund managers should not receive a tax break on the income they earn managing other people’s money, as the last time I checked, nurses don’t get a tax break on the money they make ‘managing’ people’s lives with their blood, sweat, and tears. It’s time for lawmakers to pass the Carried Interest Fairness Act and close this egregious loophole once and for all,” said Morris Pearl, Chair of the Patriotic Millionaires and a former Managing Director at BlackRock.

    “The carried interest tax loophole stands as one of the most glaring examples of how the ultra-wealthy exploit and rig our broken tax system to their advantage,” said David Kass, executive director of Americans for Tax Fairness. “It’s common sense—Wall Street hedge fund managers shouldn’t pay lower federal tax rates than nurses, teachers, and most working Americans. This change is long overdue and represents a critical step toward a fairer tax system that ensures these uber-wealthy individuals pay their fair share like everyone else.”

    “There is no reason that private equity managers, some of the wealthiest people in the country, should get away with paying lower tax rates than average families, especially as the care crisis continues to strain family budgets. Closing the carried interest loophole is an important step towards making sure the wealthiest are paying their fair share and that our tax code works for all of us, not just those at the top,” said Melissa Boteach, Vice President for Income Security and Child Care/Early Learning at the National Women’s Law Center.

    A one-pager on this legislation is available here. Bill text of this legislation is available here. 

    MIL OSI USA News –

  • MIL-OSI New Zealand: Fire Safety – Outdoor fires to be restricted in Manawatū-Whanganui district

    Source: Fire and Emergency New Zealand

    Fire and Emergency New Zealand has declared a restricted fire season for parts of the Manawatū-Whanganui district from 8am on Friday 7 February until further notice.
    A restricted fire season means anyone who wants to light an outdoor fire will need to go to www.checkitsalright.nz to apply for a permit authorised by Fire and Emergency.
    Manawatū-Whanganui District Manager Nigel Dravitzki says the restrictions apply to Horowhenua, Manawatū/Palmerston North, Rangitikei, and Whanganui areas.
    The coastal area is already in a restricted season. The Ruapehu area remains unchanged for now, although conditions there are being closely monitored.
    “At this time of year, we do start to see more fires escaping from controlled burns, and starting large wildfires which can take days to put out,” Nigel Dravitzki says.
    “Most of the vegetation in this district is pasture grass, crops, commercial forests, or unused scrub, and fire can spread very quickly through this vegetation when it’s so dry.
    “As we’ve had very little rain, and hot, dry winds are continuing, the fire risk is much higher than usual right now.
    “That’s why we’re restricting the use of open-air fires, including burn piles for rubbish or slash.
    “If you’re thinking about lighting a fire, go to checkitsalright.nz, which tells you what the restrictions are for your location, and provides safety guidance to keep our people and property safe.”

    MIL OSI New Zealand News –

  • MIL-OSI USA: Army breaks ground on state-of-the-art 6.8 mm ammunition production facility

    Source: United States Army

    INDEPENDENCE, Missouri – The U.S. Army’s Joint Program Executive Office for Armaments and Ammunition, along with the Joint Munitions Command, officially broke ground on a new 6.8 mm ammunition production facility in support of the Next Generation Squad Weapon Program at the Lake City Army Ammunition Plant on Wednesday, Feb. 5. The 6.8 mm family of ammunition, set to be produced at the new facility, will play a vital role in advancing the Army’s modernization priorities.

    The U.S. Army’s Joint Program Executive Office for Armaments and Ammunition, along with the Joint Munitions Command, officially broke ground on a new 6.8 mm ammunition production facility in support of the Next Generation Squad Weapon Program at the Lake City Army Ammunition Plant on Wednesday, Feb. 5. The 6.8 mm family of ammunition, set to be produced at the new facility, will play a vital role in advancing the Army’s modernization priorities. (Photo Credit: Courtesy: Olin Corporation) VIEW ORIGINAL

    Developed collaboratively by the JPEO A&A, the U.S. Army’s Combat Capabilities Development Command’s Armaments Center, and the Army Research Laboratory, the 6.8 mm family of ammunition is specifically engineered to maximize the performance of the XM7 Rifle and the XM250 Automatic Rifle. When fired through these Next Generation Squad Weapons, 6.8 mm rounds deliver increased range, improved accuracy, and enhanced lethality, ensuring Soldiers maintain overmatch on the battlefield.

    “It is not lost on me that victory on the battlefield begins in our production facilities,” said Maj. Gen. John T. Reim, Joint Program Executive Officer for Armaments and Ammunition. “Lake City has been central to our nation’s ammunition production since 1941, and this new facility builds on that proud and historic legacy.”

    The cutting-edge facility, which will be operated by Olin Winchester, is the culmination of an 18-month design process led by JPEO A&A with support from a diverse team of U.S. government and commercial contractors.

    Spanning 450,000 square feet, the facility will feature modern manufacturing systems

    capable of producing all components of 6.8 mm ammunition. This includes cartridge case and projectile manufacturing, energetic operations for loading and charging ammunition, product packaging, process quality controls, testing laboratories, maintenance operations and administrative areas.

    With 90% of the work supported by industries in the Kansas City region and nearly 50 local businesses involved in the construction, the new facility will strengthen the defense industrial base, create well-paying jobs, and will drive economic growth in the local community.

    Once operational, the facility will have an annual production capacity of 385 million cases, 490 million projectiles and 385 million load-assemble-pack operations for 6.8 mm ammunition. This enhanced capacity will significantly bolster U.S. munitions production, ensuring the Army maintains its readiness and ability to serve as a credible deterrent to would-be adversaries.

    JPEO A&A and the U.S. Army Combat Capabilities Command Armaments Center are headquartered at Picatinny Arsenal, New Jersey. Together, they play a critical role in developing, procuring and fielding cutting-edge armaments and ammunition, ensuring the readiness and modernization of the U.S. Army and its international partners.

    For more information, please contact Joint Program Executive Office Armaments and Ammunition’s Public Affairs Office at usarmy.pica.jpeo-aa.mbx.jpeo-aa-public-affairs@army.mil.

    MIL OSI USA News –

  • MIL-OSI Security: Former Sanger Police Officer Indicted for Illegal Firearms Dealing, Obstruction Charges

    Source: Office of United States Attorneys

    FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Daniel Battenfield, 40, of Visalia, alleging the unlawful dealing of firearms without a license, making materially false statements to a federal agent, and lying on a federal firearms form.

    According to court documents, Battenfield has purchased and resold hundreds of firearms since at least 2016, purchasing the firearms below market price because of his law enforcement status and then reselling them for a profit. On at least one occasion, he placed an order directly for a customer, lying on a federal firearms form about purchasing the firearm for himself. When confronted by federal agents, he made false statements to them about his activities. Battenfield was placed on leave by the Sanger Police Department because of these activities in July 2024.

    This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Sanger Police Department. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case.

    If convicted of unlawful dealing in firearms or making false statement to a government agency, Battenfield faces a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of making materially false statement in purchase of firearms, he faces a maximum of 10 years in prison and a fine up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI Security: Janesville Man Sentenced to 7 Years for Cocaine Trafficking

    Source: Office of United States Attorneys

    MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Taiwan Edwards, 29, Janesville, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for possessing 500 grams or more of cocaine intended for distribution. Edwards pleaded guilty to this charge on October 28, 2024.

    In October 2023, law enforcement executed a search warrant at a storage unit connected to Edwards. Officers recovered more than a kilogram of cocaine and $72,573. Officers also found six firearms, including two “ghost guns,” and ammunition. A “ghost gun” is a privately made firearm that does not have a serial number.

    At sentencing, Judge Peterson described the storage unit as a “mini armory,” and noted that Edwards had engaged in a “very substantial” amount of drug trafficking.

    The charge against Edwards was the result of an investigation conducted by the Janesville Police Department and the Wisconsin Department of Criminal Investigation. Assistant U.S. Attorney Megan R. Stelljes prosecuted this case. 

    MIL Security OSI –

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

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter 2024 Highlights

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

    Full Year 2024 Highlights

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

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

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

    Financial Summary for the Fourth Quarter of 2024

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

    Financial Summary for the Full Year 2024

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

    Guidance

    For the first quarter of 2025, Fortinet currently expects:

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

    For the fiscal year 2025, Fortinet currently expects:

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

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

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

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

    Conference Call Details

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

    First Quarter 2025 Conference Participation Schedule:

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

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

    About Fortinet (www.fortinet.com)

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

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

    FTNT-F

    Forward-Looking Statements

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

    Non-GAAP Financial Measures

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

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

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

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

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

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

    FORTINET, INC.

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

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

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

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

      Three Months Ended   Year Ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Reconciliation of non-GAAP operating income:              
    GAAP operating income $ 574.1     $ 385.4     $ 1,803.4     $ 1,241.1  
    GAAP operating margin   34.6 %     27.2 %     30.3 %     23.4 %
    Add back:              
    Stock‐based compensation   66.5       64.0       260.2       251.6  
    Amortization of acquired intangible assets   11.5       5.3       23.1       18.9  
    Litigation-related matter (a)   —       —       3.2       —  
    Gain on intellectual property matter   (1.2 )     (1.2 )     (4.6 )     (4.6 )
    Non‐GAAP operating income $ 650.9     $ 453.5     $ 2,085.3     $ 1,507.0  
    Non‐GAAP operating margin   39.2 %     32.0 %     35.0 %     28.4 %
                   
    Reconciliation of non-GAAP net income:              
    GAAP net income $ 526.2     $ 310.9     $ 1,745.2     $ 1,147.8  
    Add back:              
    Stock‐based compensation   66.5       64.0       260.2       251.6  
    Amortization of acquired intangible assets   11.5       5.3       23.1       18.9  
    Litigation-related matter (a)   —       —       3.2       —  
    Gain on intellectual property matter   (1.2 )     (1.2 )     (4.6 )     (4.6 )
    Gain on bargain purchase (b)   —       —       (106.3 )     —  
    Tax adjustment (c)   (31.5 )     13.0       (95.9 )     (128.1 )
    Non-cash charge on equity method investment (d)   —       —       8.0       —  
    Non-GAAP net income $ 571.5     $ 392.0     $ 1,832.9     $ 1,285.6  
                   
    Non-GAAP net income per share, diluted              
    Non-GAAP net income $ 571.5     $ 392.0     $ 1,832.9     $ 1,285.6  
    Non-GAAP shares used in diluted net income per share calculations   775.2       772.3       771.9       788.2  
    Non-GAAP net income per share, diluted $ 0.74     $ 0.51     $ 2.37     $ 1.63  
                   
    Reconciliation of non-GAAP net income per share, diluted              
    GAAP net income per share, diluted $ 0.68     $ 0.40     $ 2.26     $ 1.46  
    Add back:              
    Non-GAAP adjustments to net income per share   0.06       0.11       0.11       0.17  
    Non-GAAP net income per share, diluted $ 0.74     $ 0.51     $ 2.37     $ 1.63  

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

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

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


    Reconciliation of total revenue to total billings

      Three Months Ended   Year Ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Total revenue $ 1,660.1     $ 1,415.1     $ 5,955.8     $ 5,304.8  
    Add: Change in deferred revenue   349.2       449.7       625.9       1,094.7  
    Less: Deferred revenue balance acquired in business acquisitions   (6.8 )     —       (49.2 )     —  
    Total billings $ 2,002.5     $ 1,864.8     $ 6,532.5     $ 6,399.5  
    Investor Contact: Media Contact:
       
    Aaron Ovadia Michelle Zimmermann
    Fortinet, Inc. Fortinet, Inc.
    408-235-7700 408-235-7700
    investors@fortinet.com pr@fortinet.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

    Fourth Quarter Fiscal Year 2025 Outlook:

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

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

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

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

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

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

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

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

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

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

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

     
    MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in millions, except per share amounts; unaudited)
     
      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Net sales $ 1,026.0     $ 1,765.7     $ 3,431.1     $ 6,308.6  
    Cost of sales   464.6       645.7       1,464.3       2,102.8  
    Gross profit   561.4       1,120.0       1,966.8       4,205.8  
                   
    Research and development   246.2       266.0       728.6       857.1  
    Selling, general and administrative   158.2       172.2       465.7       572.4  
    Amortization of acquired intangible assets   122.6       151.3       368.3       454.2  
    Special charges and other, net   3.5       1.1       7.6       4.6  
    Operating expenses   530.5       590.6       1,570.2       1,888.3  
                   
    Operating income   30.9       529.4       396.6       2,317.5  
                   
    Other expense, net   (77.0 )     (45.1 )     (189.4 )     (151.3 )
    (Loss) income before income taxes   (46.1 )     484.3       207.2       2,166.2  
    Income tax provision   7.5       65.1       53.1       414.0  
    Net (loss) income $ (53.6 )   $ 419.2     $ 154.1     $ 1,752.2  
                   
    Basic net (loss) income per common share $ (0.10 )   $ 0.78     $ 0.29     $ 3.23  
    Diluted net (loss) income per common share $ (0.10 )   $ 0.77     $ 0.28     $ 3.19  
                   
    Basic common shares outstanding   537.4       540.8       536.9       543.0  
    Diluted common shares outstanding   537.4       546.5       542.1       549.0  
     
    MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in millions; unaudited)
     
    ASSETS
      December 31,   March 31,
        2024       2024  
    Cash and short-term investments $ 586.0     $ 319.7  
    Accounts receivable, net   857.2       1,143.7  
    Inventories   1,356.3       1,316.0  
    Other current assets   196.3       233.6  
    Total current assets   2,995.8       3,013.0  
           
    Property, plant and equipment, net   1,152.1       1,194.6  
    Other assets   11,484.3       11,665.6  
    Total assets $ 15,632.2     $ 15,873.2  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY
           
    Accounts payable and accrued liabilities $ 1,330.3     $ 1,520.0  
    Current portion of long-term debt   —       999.4  
    Total current liabilities   1,330.3       2,519.4  
           
    Long-term debt   6,749.5       5,000.4  
    Long-term income tax payable   598.7       649.2  
    Long-term deferred tax liability   22.9       28.8  
    Other long-term liabilities   899.3       1,017.6  
           
    Stockholders’ equity   6,031.5       6,657.8  
    Total liabilities and stockholders’ equity $ 15,632.2     $ 15,873.2  


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

    RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

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

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

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

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

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

    RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

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

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

    RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME

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

    (1) Amortization of acquired intangible assets consists of core and developed technology and customer-related acquired intangible assets in connection with business combinations. Such charges are excluded for purposes of calculating certain non-GAAP measures. The use of acquired intangible assets contributed to our revenues earned during the periods presented.

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

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

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

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

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

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

    RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW

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

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

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

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

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

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

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

    About Microchip:

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

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

    INVESTOR RELATIONS CONTACT:

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

    The MIL Network –

  • MIL-OSI: First Pacific Bancorp Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    WHITTIER, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — First Pacific Bancorp (the “Company”) (OTC Pink: FPBC), the holding company for First Pacific Bank (the “Bank”), today reported consolidated results for the fourth quarter and year ending December 31, 2024, marking its seventh consecutive quarter of profitability. The Company remains well-capitalized, with a robust liquidity position supported by a stable core deposit base and access to substantial sources of liquidity.

    Highlights for the fourth quarter and full year 2024 include:

    • Total assets ended 2024 at $433 million, up $13 million from $420 million at year end 2023.
    • Total deposits ended 2024 at $351 million, up $18 million since year end 2023.
    • Total loans ended 2024 at $277 million, up $2 million from year end 2023.
    • Asset quality remains excellent with minimal levels of classified or non-performing assets.
    • The Bank ended the fourth quarter with a strong capital position, with a leverage capital ratio of 9.0% and a total risk-based capital ratio of 13.4%.
    • As of December 31, 2024, cash and cash equivalents totaled $41 million, including funds invested overnight, up $19 million since year end 2023.
    • Unused borrowing capacity from credit facilities in place on December 31, 2024, totaled $167 million.

    For the fourth quarter ending December 31, 2024, the Company realized a pre-tax, pre-provision profit of $702 thousand, compared to a pre-tax, pre-provision profit of $345 thousand in Q3 2024. Net income for the fourth quarter of 2024 was $500 thousand, up from $249 thousand in Q3 2024. For the twelve months ending December 31, 2024, the Company reported $1.1 million in net income, up from a net loss of $164 thousand reported for the twelve months ending December 31, 2023.     

    Asset quality remains excellent with minimal non-performing assets and the allowance for credit losses is 1.15% of total loans. There was no provision for credit losses recognized for the year ending 2024, compared to $906 thousand for the year ending December 31, 2023.

    “We are pleased to close out 2024 on a strong note, achieving seven consecutive quarters of profitability and demonstrating the success of our strategic approach,” said Joe Matranga, Chairman of the Board of Directors. “With a solid capital position, strong liquidity, and sound financial standing, we are well-positioned to continue to execute our strategy and drive sustainable, long-term value for our stakeholders.”

    “We delivered another strong quarter of financial results highlighted by loan and deposit growth, excellent asset quality, and a solid capital and liquidity position,” said Nathan Rogge, President and Chief Executive Officer. “We enter 2025 with strong momentum and a clear growth strategy, driven by strategic investments in technology and innovation designed to enhance the banking experience and reinforce our competitive advantage.”

    “As a Southern California-based company, we are deeply saddened by the devastation caused by the recent wildfires. Our thoughts and prayers are with everyone impacted by this disaster and we are committed to helping Los Angeles move forward.”

    ABOUT FIRST PACIFIC BANK

    First Pacific Bank is a wholly owned subsidiary of First Pacific Bancorp (OTC Pink: FPBC) and is a growing community bank catering to individuals, professionals, and small-to-medium sized businesses throughout Southern California. Since opening in 2006, the Bank has offered a personalized approach, access to decision makers, a broad range of solutions, and a commitment to delivering an exceptional customer experience. First Pacific Bank operates locations in Los Angeles County, Orange County, San Diego County, and the Inland Empire. For more information, visit firstpacbank.com or call 888.BNK.AT.FPB.

    FORWARD-LOOKING STATEMENTS

    This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and First Pacific Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements relate to, among other things, our business plan, and strategies, and can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and similar expressions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause such differences include, but are not limited to: successfully realizing the benefits of our business strategy and plans,; changes in general economic and financial market conditions, either nationally or locally, in areas in which First Pacific Bank conducts its operations; effects of inflation and changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; impact of any natural disasters, including earthquakes; effect of governmental supervision and regulation, including any regulatory or other enforcement actions; legislation or regulatory changes which adversely affect First Pacific Bank’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events, or circumstances after the date of such statements except as required by law.  

    — Summary Financial Tables Follow —

    First PacificBancorp          
    Consolidated Balance Sheets          
    (Unaudited)          
      Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023
    ASSETS          
    Cash and due from banks $ 4,708,926   $ 23,584,084   $ 4,671,483   $ 7,317,500   $ 4,308,149  
    Fed funds sold & int-bearing balances   36,290,000     25,520,000     37,860,000     37,575,000     18,060,000  
    Total cash and cash equivalents   40,998,926     49,104,084     42,531,483     44,892,500     22,368,149  
               
    Debt securities (AFS)   1,866,022     3,041,852     3,077,666     5,138,340     5,257,049  
    Debt securities (HTM)   100,257,560     101,260,391     102,202,926     103,474,749     104,343,133  
    Total debt securities   102,123,582     104,302,243     105,280,592     108,613,089     109,600,182  
               
    Construction & land development   23,320,351     23,067,204     24,651,513     25,480,398     27,070,749  
    1-4 Family residential   58,588,090     58,082,570     68,588,393     68,521,663     66,567,165  
    Multifamily residential   28,561,276     28,966,811     26,800,829     26,947,419     27,128,177  
    Nonfarm, nonresidential real estate   100,066,570     99,715,860     94,643,169     97,893,840     99,627,812  
    Commercial & industrial   62,322,690     57,342,017     53,504,969     54,785,564     53,938,659  
    Consumer & Other   4,525,108     780,639     1,831,036     1,123,918     865,849  
    Total loans   277,384,085     267,955,101     270,019,909     274,752,802     275,198,411  
    Allowance for credit losses (loans)   (3,179,637 )   (3,109,975 )   (3,109,975 )   (3,109,975 )   (3,109,975 )
    Total loans, net   274,204,448     264,845,126     266,909,934     271,642,827     272,088,436  
               
    Premises, equipment, and ROU net   1,328,964     1,452,886     1,714,833     1,992,588     2,268,671  
    Goodwill, core deposit & other intangibles   1,273,134     1,287,129     1,298,084     1,313,367     1,328,651  
    Bank owned life insurance   5,287,738     5,257,550     5,227,763     5,198,654     5,170,521  
    Accrued interest and other assets   7,755,355     7,505,380     7,476,554     7,415,609     7,392,301  
               
    Total Assets $ 432,972,147   $ 433,754,398   $ 430,439,243   $ 441,068,634   $ 420,216,911  
               
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Deposits:          
    Noninterest-bearing demand $ 131,515,568   $ 129,473,091   $ 144,240,187   $ 133,945,262   $ 121,348,095  
    Interest-bearing transaction accounts   28,454,639     24,660,000     24,797,108     28,166,207     34,716,150  
    Money market and savings   146,423,126     143,270,628     143,497,864     148,732,230     139,011,862  
    Time deposits   44,302,867     44,388,137     41,060,590     38,662,227     38,235,413  
    Total deposits   350,696,200     341,791,856     353,595,749     349,505,926     333,311,520  
               
    Borrowings   40,000,000     50,000,000     35,000,000     50,000,000     45,000,000  
    Accrued interest and other liabilities   3,122,902     3,430,132     3,781,444     3,936,909     4,530,208  
    Total liabilities   393,819,102     395,221,988     392,377,193     403,442,835     382,841,728  
               
    Shareholders’ Equity:          
    Capital stock and APIC   37,272,567     37,117,627     36,970,386     36,788,606     36,699,786  
    Retained earnings   2,650,877     2,151,305     1,902,788     1,705,174     1,543,264  
    Accum other comprehensive income   (770,399 )   (736,522 )   (811,124 )   (867,981 )   (867,867 )
    Total shareholders’ equity   39,153,045     38,532,410     38,062,050     37,625,799     37,375,183  
               
    Total Liabilities and Shareholders’ Equity $ 432,972,147   $ 433,754,398   $ 430,439,243   $ 441,068,634   $ 420,216,911  
               
    First PacificBancorp          
    Consolidated Income Statements – Quarterly          
    (Unaudited)          
               
      Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023
    INTEREST INCOME          
    Loans, including fees $ 4,814,128 $ 4,817,174 $ 4,655,844 $ 4,700,535 $ 4,653,303  
    Debt securities   484,508   499,268   514,613   543,857   544,330  
    Fed funds & int-bearing balances   419,597   450,166   573,022   410,685   258,178  
    Total interest income   5,718,233   5,766,608   5,743,479   5,655,077   5,455,811  
               
    INTEREST EXPENSE          
    Deposits   1,777,351   1,790,578   1,687,121   1,746,032   1,542,541  
    Borrowings   332,375   444,250   524,599   507,390   705,324  
    Total interest expense   2,109,726   2,234,828   2,211,720   2,253,422   2,247,865  
               
    Net interest income   3,608,507   3,531,780   3,531,759   3,401,655   3,207,946  
               
    Provision for credit losses   –   –   –   –   101,538  
               
    Net interest income after provision   3,608,507   3,531,780   3,531,759   3,401,655   3,106,408  
               
    NONINTEREST INCOME          
    Service charges, fees and other income   119,173   106,628   96,460   108,365   108,769  
    Sublease income   –   53,975   52,970   53,872   53,872  
    Gains (losses) on sale of assets   –   15,335   –   –   (12,982 )
    Gains on early payoff of debt   54,125   –   144,325   –   –  
    Total noninterest income   173,298   175,938   293,755   162,237   149,659  
               
    NONINTEREST EXPENSE          
    Salaries and benefits   1,984,774   2,154,290   2,182,674   2,178,486   1,954,029  
    Occupancy and equipment   258,180   374,069   363,695   368,816   384,088  
    Other expense   836,692   834,281   1,007,247   794,158   894,440  
    Total noninterest expense   3,079,646   3,362,640   3,553,616   3,341,460   3,232,557  
               
    Income before income tax expense   702,159   345,078   271,898   222,432   23,510  
               
    Income tax expense (benefit)   202,586   96,563   74,281   60,524   (31,955 )
               
    Net Income $ 499,573 $ 248,515 $ 197,617 $ 161,908 $ 55,465  
               
    Earnings per share basic (QTR) $ 0.12 $ 0.06 $ 0.05 $ 0.04 $ 0.01  
    Weighted average shares outstanding (QTR)   4,293,829   4,288,851   4,283,351   4,281,653   4,231,841  
               
    First PacificBancorp    
    Consolidated Income Statements – Year-to-Date    
    (Unaudited)    
         
      Dec 31, 2024 Dec 31, 2023
    INTEREST INCOME    
    Loans, including fees $ 18,987,681 $ 16,705,212  
    Investment securities   2,042,246   2,279,349  
    Fed funds & int-bearing balances   1,853,470   1,000,827  
    Total interest income   22,883,397   19,985,388  
         
    INTEREST EXPENSE    
    Deposits   7,001,082   4,744,486  
    Borrowings   1,808,614   2,440,727  
    Total interest expense   8,809,696   7,185,213  
         
    Net interest income   14,073,701   12,800,175  
         
    Provision for credit losses   –   905,966  
         
    Net interest income after provision   14,073,701   11,894,209  
         
    NONINTEREST INCOME    
    Service charges, fees and other income   430,626   455,823  
    Sublease income   160,817   212,074  
    Gains (losses) on sale of assets   15,335   129,093  
    Gains on early payoff of debt   198,450   123,077  
    Total noninterest income   805,228   920,067  
         
    NON INTEREST EXPENSE    
    Salaries and benefits   8,500,224   8,558,603  
    Occupancy and equipment   1,364,760   1,470,277  
    Other expense   3,472,378   3,124,577  
    Total noninterest expense   13,337,362   13,153,457  
         
    Income before income tax expense   1,541,567   (339,181 )
         
    Income tax expense (benefit)   433,954   (175,262 )
         
    Net Income (loss) $ 1,107,613 $ (163,919 )
         
    Earnings (loss) per share basic (YTD) $ 0.26 $ (0.04 )
    Weighted average shares outstanding (YTD)   4,286,945   3,992,738  
               
    First PacificBancorp            
    Quarterly Financial Highlights            
    (Unaudited)            
        Quarterly
        2024 2024 2024 2024 2023
    ($ in thousands except per share data)   4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
    EARNINGS            
    Net interest income $ 3,609   3,532   3,532   3,402   3,208  
    Provision for loan losses $ 0   0   0   0   102  
    Noninterest income $ 173   176   294   162   150  
    Noninterest expense $ 3,080   3,363   3,554   3,341   3,233  
    Income tax expense $ 203   97   74   61   (32 )
    Net income $ 500   249   198   162   55  
                 
    Earnings per share basic $ 0.12   0.06   0.05   0.04   0.01  
    Weighted average shares outstanding   4,293,829   4,288,851   4,283,351   4,281,653   4,231,841  
    Ending shares outstanding   4,294,500   4,291,927   4,283,351   4,283,351   4,231,841  
                 
    PERFORMANCE RATIOS            
    Return on average assets   0.47 % 0.23 % 0.18 % 0.15 % 0.05 %
    Return on average common equity   5.12 % 2.58 % 2.10 % 1.73 % 0.59 %
    Yield on loans   6.91 % 6.98 % 6.97 % 6.84 % 6.69 %
    Yield on earning assets   5.50 % 5.58 % 5.52 % 5.49 % 5.35 %
    Cost of deposits   1.98 % 2.05 % 1.96 % 2.05 % 1.89 %
    Cost of funding   2.18 % 2.32 % 2.28 % 2.35 % 2.37 %
    Net interest margin   3.47 % 3.42 % 3.40 % 3.31 % 3.15 %
    Efficiency ratio   81.4 % 90.7 % 92.9 % 93.8 % 96.3 %
                 
    CAPITAL            
    Tangible equity to tangible assets   8.77 % 8.61 % 8.57 % 8.26 % 8.61 %
    Book value (BV) per common share $ 9.12   8.98   8.89   8.78   8.83  
    Tangible BV per common share $ 8.82   8.68   8.58   8.48   8.52  
                 
    ASSET QUALITY            
    Net loan charge-offs (recoveries) $ 0   0   0   0   0  
    Allowance for credit losses (loans) $ 3,180   3,110   3,110   3,110   3,110  
    Allowance to total loans   1.15 % 1.16 % 1.15 % 1.13 % 1.13 %
    Nonperforming loans $ 672   991   77   160   61  
                 
    END OF PERIOD BALANCES            
    Total loans $ 277,384   267,955   270,020   274,753   275,198  
    Total assets $ 432,972   433,754   430,439   441,069   420,217  
    Deposits $ 350,696   341,792   353,596   349,506   333,312  
    Loans to deposits   79.1 % 78.4 % 76.4 % 78.6 % 82.6 %
    Shareholders’ equity $ 39,153   38,532   38,062   37,626   37,375  
    Full-time equivalent employees   49   44   44   46   45  
                 
    AVERAGE BALANCES (QTRLY)            
    Total loans $ 276,294   273,960   267,766   275,578   276,016  
    Earning assets $ 412,417   410,298   416,965   412,791   404,210  
    Total assets $ 425,750   424,199   430,830   426,592   417,595  
    Deposits $ 355,369   346,142   346,032   341,226   323,300  
    Shareholders’ equity $ 38,746   38,267   37,788   37,443   37,179  

    The MIL Network –

  • MIL-OSI USA: Kennedy, Crapo reintroduce Hearing Protection Act to remove regulatory burden for lawful gun owners

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)

    WASHINGTON – Sen. John Kennedy (R-La.) today joined Sen. Mike Crapo (R-Idaho) and colleagues in reintroducing the Hearing Protection Act (HPA) to help law-abiding gun owners better access suppressors to preserve their hearing and safety. The HPA would reclassify suppressors so that they receive the same regulation as traditional firearms, removing regulatory burdens.

    “Big government shouldn’t stand in the way of protecting lawful gun owners’ hearing. I’m proud to help introduce this bill to make it easier for Louisianians and all Americans to practice their Second Amendment rights safely,” said Kennedy.

    “Federal red tape continues to follow the false Hollywood narrative that suppressors are silent, and ignores the reality that they serve a genuine purpose in protecting the hearing of law-abiding American citizens exercising their Second Amendment rights. It is past time Congress removes the burdensome barriers to accessing this equipment for the safety of Idaho’s hunters and sportsmen,” said Crapo. 

    Suppressors are currently subject to additional regulatory burdens under the National Firearms Act (NFA). The HPA would remove suppressors from regulation under the NFA and replace the overly burdensome federal transfer process with an instantaneous background check through the National Instant Criminal Background Check System. This process would make the purchasing and transfer process for suppressors equal to that for a rifle or shotgun.

    By taxing suppressors under the Pittman-Robertson Wildlife Restoration Act, rather than the NFA, the bill would also generate funding for state wildlife conservation agencies. 

    The legislation does not impact any state laws that prevent suppressors, and it does not eliminate background check requirements.

    The full bill text is available here. 

    MIL OSI USA News –

  • MIL-OSI New Zealand: Opposition to seabed mining remains strong as Fast-Track process opens for applications – Kiwis Against Seabed Mining (KASM)

    Source: Kiwis Against Seabed Mining (KASM)

    As the government opens the floodgates today for project applications under its new Fast-Track Approvals Act, opposition to seabed mining is as strong as ever, Kiwis Against Seabed Mining (KASM) said today.

    The KASM team spent Waitangi Day in Patea, one of the closest settlements to the proposed mine site in the South Taranaki Bight, and found nothing but fierce opposition, from iwi to fishermen, from surfers to teachers and pensioners – and local councils.

    “There’s a real anger in this community at the prospect that this project could still go ahead after being so roundly and repeatedly rejected by the highest court in the land,” said KASM chairperson Cindy Baxter.

    “This seabed mining project is called a zombie project because it simply did not stand up to scrutiny: there’s so many uncertainties, and the company simply hasn’t done the work.”

    This was evident in the hearing Trans Tasman Resources walked away from last year, when it gave up on trying to meet the Supreme Court’s test of causing “no material harm.”

    KASM doesn’t expect the TTR application to be vastly different from what the company presented to those hearings. Trans Tasman Resources appears to only have focussed on lobbying politicians and spending as little money as possible on the mahi it needed to do, while grossly exaggerating the projected economic impact.

    “Right around the country today communities like Patea are gearing up for a fight to keep their land, their water and their oceans free from pollution, pitted against a government determined to ride roughshod over their future. It shouldn’t have to be this way.”

    The Fast-Track website is now online, advertising that it will post “news” today (ref. https://kasm.us6.list-manage.com/track/click?u=40fd433e2f2344060946f0bb8&id=378af0d022&e=26e06db549 )

    MIL OSI New Zealand News –