AI Drives Growth for Tech Companies Arteris and Appian in Q4 2024

Arteris Announces Financial Results for the Fourth Quarter and Full Year 2024 and Estimated First Quarter and Full Year 2025 Guidance - Arteris (NASDAQ:AIP)

CAMPBELL, Calif., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Arteris, Inc. AIP, a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced financial results for the fourth quarter and year ended December 31, 2024 and provided first quarter and full year 2025 guidance. "In the fourth quarter of 2024, we achieved a record Annual Contract Value plus royalties of $65.1 million, driven by strong demand for our commercial semiconductor System IP products, particularly in AI-driven enterprise computing and automotive SoCs," said K. Charles Janac, President and CEO of Arteris. "As AI adoption accelerates across data centers, autonomous driving, and edge devices, the growing complexity of both high performance and traditional technologies like MCUs is fueling demand for the efficiency enabled by Arteris' networks-on-chip IP technology, contributing to new customer wins, and expanded partnerships. With a robust product pipeline and deepening relationships with top-tier technology companies, we believe we are well-positioned to capitalize on exciting high-growth opportunities including Generative AI and Autonomous Driving," concluded Janac. Fourth Quarter 2024 Financial Highlights: Revenue of $15.5 million, up 24% year-over-yearAnnual Contract Value (ACV) plus royalties of $65.1 million, up 16% year-over-year, growing to the highest level we have ever reportedRemaining performance obligation (RPO) of $88.4 million, up 22% year-over-year, growing to the highest level we have ever reportedOperating loss of $7.1 million, compared to an operating loss of $9.2 million in the fourth quarter of 2023Non-GAAP operating loss of $2.8 million, compared to a Non-GAAP operating loss of $5.5 million in the fourth quarter of 2023Net loss of $8.2 million or $0.20 per shareNon-GAAP net loss of $3.9 million or $0.10 per share Full year 2024 Financial Highlights: Revenue of $57.7 million, up 8% year-over-yearOperating loss of $31.6 million, compared to an operating loss of $35.1 million for the year-ended 2023Non-GAAP operating loss of $14.8 million, compared to a Non-GAAP operating loss of $19.8 million for the year-ended 2023Net loss of $33.6 million or $0.86 per shareNon-GAAP net loss of $16.9 million or $0.43 per share Fourth Quarter 2024 Business Highlights: 2024 was a strong year for Arteris, seeing accelerating demand for commercial system IP. We signed on 14 new customers, including two major automotive OEMs, and increased our footprint in key technology areas, such as chiplets, microcontrollers (MCUs), and AI;Record high $65.1 million in ACV plus royalties, driven by the addition of new customers as well as increased uptake by our current customers;Large, established customers are continuing to broaden their use of the Arteris product portfolio, with a top 5 technology company licensing Magillem and CSRCompiler, and a top 5 automotive semiconductor company licensing several additional SoC designs;Delivered on last quarter's strategic expansion into the microcontroller space, licensing Arteris interconnect to Infineon, the leading MCU company, serving the world's top automotive Tier 1 vendors and OEMs;Announced design wins with GigaDevice for automotive microcontrollers, and Menta for edge AI and IoT chiplet designs; andAnnounced the release of FlexGen smart NoC IP, which has the potential to deliver up to 10x engineer productivity and lower power consumption, through the automation of NoC design creation. Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP net loss, Non-GAAP net loss per share, free cash flow and free cash flow margin are Non-GAAP financial measures. Additional information on Arteris' historic reported results, including a reconciliation of these Non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below. First Quarter and Full Year 2025 Guidance: Q1 2025FY 2025 (in millions)ACV + royalties$65.5 - $67.5$73.0 - $77.0Revenue$15.7 - $16.1$66.0 - $70.0Non-GAAP operating loss$3.0 - $4.0$8.5 - $12.5Free cash flow$(2.0) - $2.0$1.0 - $7.0 The guidance provided above are forward-looking statements and reflects Arteris' expectations as of today's date. Actual results may differ materially. Refer to the section titled "Forward-Looking Statements" below for information on the factors, among others, that could cause our actual results to differ materially from these forward-looking statements. A reconciliation of Non-GAAP guidance measures reported above to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Arteris' results computed in accordance with GAAP. Definitions of the other business metrics used in this press release including ACV, active customers, confirmed design starts and RPO are included below under the heading "Other Business Metrics." Conference Call Arteris will host a conference call today on February 18, 2025 to review its fourth quarter and full year 2024 financial results and to discuss its financial outlook. Time:4:30PM ETUnited States/Canada Toll Free:1-646-307-1865International Toll:1-800-717-1738 A live webcast will also be available in the Investor Relations section of Arteris' website at: https://ir.arteris.com/events-and-presentations A replay of the webcast will be available in the Investor Relations section of Arteris' website approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days. About Arteris Arteris is a leading provider of system IP for the acceleration of system-on-chip (SoC) development across today's electronic systems. Arteris network-on-chip (NoC) interconnect IP and SoC integration automation technology enable higher product performance with lower power consumption and faster time to market, delivering better SoC economics so its customers can focus on dreaming up what comes next. Learn more at arteris.com. © 2004-2025 Arteris, Inc. All rights reserved worldwide. Arteris, Arteris IP, the Arteris IP logo, and the other Arteris marks found at https://www.arteris.com/trademarks are trademarks or registered trademarks of Arteris, Inc. or its subsidiaries. All other trademarks are the property of their respective owners. Investor Contacts: Arteris Nick Hawkins Chief Financial Officer IR@arteris.com Sapphire Investor Relations, LLC Erica Mannion and Michael Funari +1 617 542 6180 IR@arteris.com Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including but not limited to, statements regarding our future financial and operating performance, including our GAAP and Non-GAAP guidance for the fourth quarter and full year 2024 and first quarter and full year 2025; our market opportunity and its potential growth; our ability to execute on existing customer contracts and drive increased customer adoption of our system IP; and our position within the market and our ability to drive customer value. The words such as "may," "will," "could," "expect," "approximately," "believe," "estimate," "future," "potential," "guidance," "outlook," and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations. Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the significant competition we face from larger companies and third-party providers; our history of net losses; whether semiconductor companies in the automotive market, enterprise computing market, communications market, consumer electronics market, and industrial markets incorporate our solutions into their end products and the growth and economic stability of these end markets; our ability to attract new customers and the extent to which our customers renew their subscriptions for our solutions; the ability of our customers' end products achieving market acceptance or growth; our ability to sustain or grow our licensing revenue; our ability, and the cost, to successfully execute on research and development efforts; the occurrence of product errors or defects in our solutions; if we fail to offer high-quality support; the occurrence of macro-economic conditions that adversely impact us, our customers and their end product markets; the effects of geopolitical conflicts, such as the military conflict between Russia and Ukraine; the range of regulatory, operational, financial and political risks we are exposed to as a result of our dependence on international customers and operations; our ability to protect our proprietary technology and inventions through patents and other IP rights; whether we are subject to any liabilities or fines as a result of government regulation, including import, export and economic sanctions laws and regulations; the occurrence of a disruption in our networks or a security breach; risks associated with doing business in China, including as a result of changes to trade relations between the U.S. and China; and the other factors described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024 to be filed with the Securities and Exchange Commission (SEC) on or about February 18, 2025. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Our results for the quarter and year ended December 31, 2024 are not necessarily indicative of our operating results for any future periods. Arteris, Inc.Condensed Consolidated Statements of Operations(In thousands, except share and per share data)(Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Revenue Licensing, support and maintenance$14,016 $11,347 $52,815 $48,273 Variable royalties and other 1,473 1,157 4,909 5,393 Total revenue 15,489 12,504 57,724 53,666 Cost of revenue 1,575 1,448 5,962 5,077 Gross profit 13,914 11,056 51,762 48,589 Operating expenses: Research and development 11,532 10,663 45,007 45,128 Sales and marketing 5,365 5,029 20,796 20,659 General and administrative 4,119 4,613 17,555 17,944 Total operating expenses 21,016 20,305 83,358 83,731 Loss from operations (7,102) (9,249) (31,596) (35,142)Interest expense (45) (75) (244) (211)Other income (expense), net 824 917 3,400 3,558 Loss before income taxes and loss from equity method investment (6,323) (8,407) (28,440) (31,795)Loss from equity method investment, net of tax 634 910 2,698 3,397 Provision for income taxes 1,247 1,224 2,500 1,677 Net loss$(8,204) $(10,541) $(33,638) $(36,869) Net loss per share attributable to common stockholders, basic and diluted$(0.20) $(0.29) $(0.86) $(1.03)Weighted average shares used in computing per share amounts, basic and diluted 40,157,199 36,816,597 38,914,197 35,675,689 Arteris, Inc.Condensed Consolidated Balance Sheets(In thousands, except share and per share data) As of December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents$13,684 $13,696 Short-term investments 30,157 27,477 Accounts receivable, net of allowance of $131 and $93 as of December 31, 2024, and 2023, respectively 20,608 12,003 Prepaid expenses and other current assets 4,634 5,254 Total current assets 69,083 58,430 Property and equipment, net 4,019 5,745 Long-term investments 8,504 11,802 Equity method investment 5,802 8,500 Operating lease right-of-use assets 3,838 4,289 Intangibles, net 3,024 3,858 Goodwill 4,178 4,178 Other assets 7,687 5,999 TOTAL ASSETS$106,135 $102,801 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable$539 $183 Accrued expenses and other current liabilities 15,899 11,831 Operating lease liabilities, current 917 781 Deferred revenue, current 40,445 31,537 Vendor financing arrangements, current 1,482 2,070 Total current liabilities 59,282 46,402 Deferred revenue, noncurrent 35,177 25,172 Operating lease liabilities, noncurrent 2,998 3,610 Vendor financing arrangements, noncurrent 594 1,292 Deferred income, noncurrent 7,631 8,810 Other liabilities 1,641 2,412 Total liabilities 107,323 87,698 Stockholders' (deficit) equity: Preferred stock, par value of $0.001 -- 10,000,000 shares authorized and no shares issued and outstanding as of both December 31, 2024, and 2023 -- -- Common stock, par value of $0.001 -- 300,000,000 shares authorized at December 31, 2024, and 2023; 40,724,936 and 37,518,583 shares issued and outstanding at December 31, 2024, and 2023, respectively 40 37 Additional paid-in capital 135,522 118,193 Accumulated other comprehensive income 135 120 Accumulated deficit (136,885) (103,247)Total stockholders' (deficit) equity (1,188) 15,103 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$106,135 $102,801 Arteris, Inc.Condensed Consolidated Statements of Cash Flows(In thousands) Twelve Months Ended December 31, 2024 2023CASH FLOWS FROM OPERATING ACTIVITIES: Net loss$(33,638) $(36,869)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 3,362 3,069 Stock-based compensation 15,938 14,535 Pension plan expenses 163 134 Amortization of deferred income (1,182) (1,179)Loss from equity method investment 2,698 3,397 Net accretion of discounts on available-for-sale securities (695) (893)Other, net (9) 128 Changes in operating assets and liabilities: Accounts receivable, net (8,605) (4,858)Prepaid expenses and other assets (1,068) (1,301)Accounts payable 324 (389)Accrued expenses and other liabilities 3,079 2,467 Deferred revenue 18,913 6,030 Net cash used in operating activities (720) (15,729)CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (324) (1,503)Purchases of available-for-sale securities and other (37,175) (47,788)Proceeds from maturities of available-for-sale securities and other 38,469 44,650 Other investing activities -- (50)Net cash provided by (used in) investing activities 970 (4,691)CASH FLOWS FROM FINANCING ACTIVITIES: Payments of contingent consideration for business combination -- (1,592)Principal payments under vendor financing arrangements (1,749) (1,289)Payments to tax authorities for shares withheld from employees -- (607)Proceeds from exercise of stock options 890 490 Proceeds from employee stock purchase plan 538 -- Other financing activities 59 79 Net cash used in financing activities (262) (2,919)NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (12) (23,339)CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period 14,084 37,423 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period$14,072 $14,084 Non-GAAP Financial Measures To supplement our financial results, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core performance. These non-GAAP measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We define "Non-GAAP gross profit and Non-GAAP gross margin" as GAAP gross profit and GAAP gross margin, adjusted for stock-based compensation expense and amortization of intangible assets included in cost of revenue. We define "Non-GAAP Loss from Operations" as our income (loss) from operations adjusted to exclude stock-based compensation, acquisition costs and amortization of acquired intangible assets. We define "Non-GAAP Net Loss" as our net income (loss) adjusted to exclude stock-based compensation and amortization of acquired intangible assets. We define "Non-GAAP EPS", as our Non-GAAP Net Income (Loss) divided by our GAAP weighted-average number of shares outstanding for the period on a diluted basis. Management uses Non-GAAP EPS to evaluate the performance of our business on a comparable basis from period to period. The above items are excluded from our Non-GAAP Gross Profit, Non-GAAP Income (Loss) from Operations and Non-GAAP Net Income (Loss) because these items are non-cash in nature, or are not indicative of our core operating performance, and render comparisons with prior periods and competitors less meaningful. We believe Non-GAAP Gross Profit, Non-GAAP Income (Loss) from Operations and Non-GAAP Net Income (Loss) provide useful supplemental information to investors and others in understanding and evaluating our results of operations, as well as provide a useful measure for period-to-period comparisons of our business performance. We define free cash flow as net cash used in operating activities less cash used for purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors, even if negative, about the amount of cash used in our operations other than that used for investments in property and equipment. Other Business Metrics Active Customers - we define Active Customers as customers who have entered into a license agreement with us that remains in effect. The retention and expansion of our relationships with existing customers are key indicators of our revenue potential. Annual Contract Value (ACV) - we define Annual Contract Value for an individual customer agreement as the total fixed fees under the agreement divided by the number of years in the agreement term. Our total ACV is the aggregate ACVs for all our customers as measured at a given point in time. Total fixed fees includes licensing, support and maintenance and other fixed fees under IP licensing or software licensing agreements but excludes variable revenue derived from licensing agreements with customers, particularly royalties. We define ACV plus royalties as ACV plus the trailing-twelve-months variable royalties and other revenue. Confirmed Design Starts - we define Confirmed Design Starts as when customers confirm their commencement of new semiconductor designs using our interconnect IP and notify us. Confirmed Design Starts is a metric management uses to assess the activity level of our customers in terms of the number of new semiconductor designs that are started using our interconnect IP in a given period. We believe that the number of Confirmed Design Starts is an important indicator of the growth of our business and future royalty revenue trends. Remaining Performance Obligations (RPO) - we define Remaining Performance Obligations as the amount of contracted future revenue that has not yet been recognized, including deferred revenue, billed and unbilled cancelable and non-cancelable contracted amounts. Arteris, Inc.Reconciliation of GAAP Measures to Non-GAAP Measures(In thousands, except share and per share data)(Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Gross profit$13,914 $11,056 $51,762 $48,589 Add: Stock-based compensation expense included in cost of revenue 187 170 783 556 Amortization of acquired intangible assets (1) 49 50 199 149 Non-GAAP gross profit$14,150 $11,276 $52,744 $49,294 Gross margin 90% 88% 90% 91%Non-GAAP gross margin 91% 90% 91% 92% Research and development$11,532 $10,663 $45,007 $45,128 Stock-based compensation expense (1,959) (1,668) (7,509) (7,324)Amortization of acquired intangible assets (1) (109) (85) (389) (390)Non-GAAP research and development$9,464 $8,910 $37,109 $37,414 Sales and marketing$5,365 $5,029 $20,796 $20,659 Stock-based compensation expense (849) (624) (3,079) (2,712)Amortization of acquired intangible assets (1) (58) (57) (229) (228)Non-GAAP sales and marketing$4,458 $4,348 $17,488 $17,719 General and administrative$4,119 $4,613 $17,555 $17,944 Stock-based compensation expense (1,136) (1,092) (4,567) (3,943)Non-GAAP general and administrative$2,983 $3,521 $12,988 $14,001 Loss from operations$(7,102) $(9,249) $(31,596) $(35,142)Stock-based compensation expense 4,131 3,554 15,938 14,535 Amortization of acquired intangible assets (1) 216 192 817 767 Non-GAAP loss from operations$(2,755) $(5,503) $(14,841) $(19,840) Net loss$(8,204) $(10,541) $(33,638) $(36,869)Stock-based compensation expense 4,131 3,554 15,938 14,535 Amortization of acquired intangible assets (1) 216 192 817 767 Non-GAAP net loss(2)$(3,857) $(6,795) $(16,883) $(21,567) Net loss per share attributable to common stockholders, basic and diluted$(0.20) $(0.29) $(0.86) $(1.03)Per share impacts of adjustments to net loss (3)$0.10 $0.11 $0.43 $0.43 Non-GAAP net loss per share attributable to common stockholders, basic and diluted$(0.10) $(0.18) $(0.43) $(0.60) Weighted average shares used in computing per share amounts, basic and diluted 40,157,199 36,816,597 38,914,197 35,675,689 (1) Represents the amortization expenses of our intangible assets attributable to our acquisitions.(2) Our GAAP tax provision is primarily related to foreign withholding taxes and income tax in profitable foreign jurisdictions. We maintain a full valuation allowance against our deferred tax assets in the US. Accordingly, there is no significant tax impact associated with these Non-GAAP adjustments.(3) Reflects the aggregate adjustments made to reconcile Non-GAAP net loss to our net loss as noted in the above table, divided by the GAAP diluted weighted average number of shares of the relevant period. Free Cash Flow Twelve Months Ended December 31, 2024 2023Net cash used in operating activities$(720) $(15,729)Less: Purchase of property and equipment (324) (1,503)Free cash flow$(1,044) $(17,232)Net cash provided by (used in) investing activities$970 $(4,691)Net cash used in financing activities$(262) $(2,919) AIPArteris Inc $10.103.48% Watchlist Overview Market News and Data brought to you by Benzinga APIs

Appian Announces Fourth Quarter and Full Year 2024 Financial Results - Appian (NASDAQ:APPN)

Fourth quarter cloud subscription revenue increased 19% year-over-year to $98.9 million Full year cloud subscription revenue increased 21% year-over year to $368.0 million MCLEAN, Va., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Appian APPN today announced financial results for the fourth quarter and full year ended December 31, 2024. "In 2024, Appian demonstrated its ability to grow with increasing efficiency. We specialize in creating value with AI, by deploying it in a process. While others bring work to AI, we bring AI to work," said Matt Calkins, CEO & Founder. Fourth Quarter 2024 Financial Highlights: Revenue: Cloud subscription revenue was $98.9 million, up 19% compared to the fourth quarter of 2023. Total subscriptions revenue, which includes sales of our cloud subscriptions, on-premises term license subscriptions, and maintenance and support, increased 18% year-over-year to $136.8 million. Professional services revenue was $29.9 million, an increase of 1% compared to the fourth quarter of 2023. Total revenue was $166.7 million, up 15% compared to the fourth quarter of 2023. Cloud subscription revenue retention rate was 116% as of December 31, 2024.Operating income (loss) and non-GAAP operating income (loss): GAAP operating income was $5.0 million, compared to GAAP operating loss of $(16.8) million for the fourth quarter of 2023. Non-GAAP operating income was $18.7 million, compared to non-GAAP operating loss of $(1.4) million for the fourth quarter of 2023.Net loss and non-GAAP net income (loss): GAAP net loss was $(13.6) million, compared to $(10.0) million for the fourth quarter of 2023. GAAP net loss per share was $(0.18) for the fourth quarter of 2024, compared to $(0.14) for the fourth quarter of 2023. Non-GAAP net loss was $(0.2) million, compared to non-GAAP net income of $4.9 million for the fourth quarter of 2023. Non-GAAP net loss per share was breakeven, compared to the $0.06 net income per diluted share for the fourth quarter of 2023. GAAP and non-GAAP net loss for the fourth quarter of 2024 included $14.3 million, or $0.19 per share, of foreign currency exchange losses. GAAP net loss and non-GAAP net income for the fourth quarter of 2023 included $11.1 million, or $0.15 per share, of foreign currency exchange gains. We do not forecast foreign exchange rate movements.Adjusted EBITDA: Adjusted EBITDA was $21.2 million, compared to adjusted EBITDA of $1.0 million for the fourth quarter of 2023.Cash flows: Net cash provided by operating activities was $13.9 million for the three months ended December 31, 2024 compared to $(8.2) million of net cash used in operating activities for the same period in 2023. Full Year 2024 Financial Highlights: Revenue: Cloud subscription revenue was $368.0 million for the full year 2024, up 21% compared to the full year 2023. Total subscriptions revenue increased 19% year-over-year to $490.6 million for the full year 2024. Professional services revenue was $126.5 million for the full year 2024, compared to $133.0 million for the full year 2023. Total revenue was $617.0 million for the full year 2024, up 13% compared to the full year 2023.Operating loss and non-GAAP operating income (loss): GAAP operating loss was $(60.9) million for the full year 2024, compared to $(108.0) million for the full year 2023. Non-GAAP operating income was $10.2 million for the full year 2024, compared to non-GAAP operating loss $(54.3) million for the full year 2023.Net loss and non-GAAP net loss: GAAP net loss was $(92.3) million for the full year 2024, compared to $(111.4) million for the full year 2023. GAAP net loss per share was $(1.26) for the full year 2024, compared to $(1.52) for the full year 2023. Non-GAAP net loss was $(25.6) million for the full year 2024, compared to $(59.2) million for the full year 2023. Non-GAAP net loss per share was $(0.35) for the full year 2024, compared to the $(0.81) net loss per share for the full year 2023. GAAP and non-GAAP net loss for the full year 2024 included $16.8 million, or $(0.23) per share, of foreign currency exchange losses. GAAP and non-GAAP net loss for the full year 2023 included $8.7 million, or $0.12 per share, of foreign currency exchange gains.Adjusted EBITDA: Adjusted EBITDA was $20.3 million for the full year 2024, compared to adjusted EBITDA loss of $(44.8) million for the full year 2023.Balance sheet and cash flows: As of December 31, 2024, Appian had total cash, cash equivalents, and investments of $159.9 million. Net cash provided by operating activities was $6.9 million for the full year 2024, compared to $(110.4) million of net cash used in operating activities for the full year 2023. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures." Recent Business Highlights: Appian Named a Leader in Everest Group's Process Orchestration Products PEAK Matrix® 2024Appian Unveils Latest Platform Release for Better Process and Better OutcomesAGL Energy Revolutionizes Retail Operations with AppianAppian Announces 2024 Partner Award Winners at Appian EuropeAppian Announces 2024 APJ Partner Award Winners Financial Outlook: As of February 19, 2025, guidance for 2025 is as follows: First Quarter 2025 Guidance: Cloud subscription revenue is expected to be between $97.0 million and $99.0 million, representing year-over-year growth of 12% to 14%.Total revenue is expected to be between $162.0 million and $164.0 million, representing a year-over-year increase of 8% to 9%.Adjusted EBITDA is expected to be between $8.0 million and $10.0 million.Non-GAAP net income per share is expected to be between $0.02 and $0.05, assuming weighted average common shares outstanding of 74.7 million. Full Year 2025 Guidance: Cloud subscription revenue is expected to be between $419.0 million and $421.0 million, representing year-over-year growth of 14%.Total revenue is expected to be between $680.0 million and $684.0 million, representing a year-over-year increase of 10%.Adjusted EBITDA is expected to be between $38.0 million and $42.0 million.Non-GAAP net income per share is expected to be between $0.17 and $0.22, assuming weighted average common shares outstanding of 75.1 million. Conference Call Details: Appian will host a conference call today, February 19, 2025, at 8:30 a.m. ET to discuss Appian's financial results for the fourth quarter ended December 31, 2024 and business outlook. To access the call, navigate to the following link(1). Once registered, participants can dial in using their phone with a dial in and PIN, or they can choose the Call Me option for instant dial to their phone. The live webcast of the conference call can also be accessed on the Investor Relations page of our website at https://investors.appian.com. ___________________________________________________________ 1 https://register.vevent.com/register/BIce42c2bd07da42509fa81b5d008eb27d About Appian Appian is The Process Company. We deliver a software platform that helps organizations run better processes that reduce costs, improve customer experiences, and gain a strategic edge. Committed to client success, we serve many of the world's largest companies across industries. For more information, visit appian.com. APPN Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, Appian provides investors with certain non-GAAP financial performance measures. Appian uses these non-GAAP financial performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Appian's management believes these non-GAAP financial measures provide meaningful supplemental information regarding Appian's performance by excluding certain expenses that may not be indicative of our recurring core business operating results. Appian believes both management and investors benefit from referring to these non-GAAP financial measures in assessing Appian's performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to historical performance as well as comparisons to competitors' operating results. Appian believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to measures used by management in its financial and operational decision-making and (2) they are used by Appian's institutional investors and the analyst community to help them analyze the health of Appian's business. The non-GAAP financial performance measures include the following: non-GAAP subscriptions cost of revenue, non-GAAP professional services cost of revenue, non-GAAP total cost of revenue, non-GAAP total operating expense, non-GAAP operating loss, non-GAAP income tax expense, non-GAAP net income (loss), and non-GAAP net income (loss) per share, basic and diluted. These non-GAAP financial performance measures exclude the effect of stock-based compensation expense, certain non-ordinary litigation-related expenses consisting of legal and other professional fees associated with the Pegasystems cases (net of insurance reimbursements), or Litigation Expense, amortization of the judgment preservation insurance policy, or JPI Amortization, severance costs related to involuntary reductions in our workforce, or Severance Costs, lease impairment and lease-related charges associated with actions taken to reduce the footprint of our leased office spaces, or Lease Impairment and Lease-Related Charges, and a short-swing profit disgorgement paid to us by a shareholder, or Short-Swing Profit Payment. While some of these items may be recurring in nature and should not be disregarded in the evaluation of our earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods as these items can vary significantly from period to period depending on specific underlying transactions or events that may occur. Therefore, while we may incur or recognize these types of expenses in the future, we believe removing these items for purposes of calculating our non-GAAP financial measures provides investors with a more focused presentation of our ongoing operating performance. Appian also discusses adjusted EBITDA, a non-GAAP financial performance measure it believes offers a useful view of the overall operation of its businesses. The Company defines adjusted EBITDA as net loss before (1) other expense (income), net, (2) interest expense, (3) income tax expense, (4) depreciation expense and amortization of intangible assets, (5) stock-based compensation expense, (6) Litigation Expense, (7) JPI Amortization, (8) Severance Costs, and (9) Lease Impairment and Lease-Related Charges. The most directly comparable GAAP financial measure to adjusted EBITDA is net loss. Users should consider the limitations of using adjusted EBITDA, including the fact this measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to purport to be an alternative to net loss as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared and presented in accordance with GAAP, and Appian's non-GAAP measures may be different from non-GAAP measures used by other companies. For more information on these non-GAAP financial measures, see the reconciliation of these non-GAAP financial measures to their nearest comparable GAAP measures at the end of this press release. Appian provides guidance ranges for non-GAAP net income (loss) per share and adjusted EBITDA; however, we are not able to reconcile these amounts to their comparable GAAP financial measures without unreasonable efforts because certain information necessary to calculate such measures on a GAAP basis is unavailable, subject to high variability, dependent on future events outside of our control, and cannot be predicted. In addition, Appian believes such reconciliations could imply a degree of precision that might be confusing or misleading to investors. The actual effect of the reconciling items that Appian may exclude from these non-GAAP expense numbers, when determined, may be significant to the calculation of the comparable GAAP measures. Forward-Looking Statements This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including statements regarding Appian's future financial and business performance for the first quarter and full year 2025, future investment by Appian in its go-to-market initiatives, increased demand for the Appian Platform, market opportunity and plans and objectives for future operations, including Appian's ability to drive continued subscriptions revenue and total revenue growth, are forward-looking statements. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will," "plan," and similar expressions are intended to identify forward-looking statements. Appian has based these forward-looking statements on its current expectations and projections about future events and financial trends that Appian believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including the risks and uncertainties associated with Appian's ability to grow its business and manage its growth, Appian's ability to sustain its revenue growth rate, continued market acceptance of Appian's Platform and adoption of low-code solutions to drive digital transformation, the fluctuation of Appian's operating results due to the length and variability of its sales cycle, competition in the markets in which Appian operates, AI being a disruptive set of technologies that may affect the markets for Appian's software dramatically and in unpredictable ways, risks and uncertainties associated with the composition and concentration of Appian's customer base and their demand for its platform and satisfaction with the services provided by Appian, Appian's ability to operate in compliance with applicable laws and regulations, Appian's strategic relationships with third parties, and additional risks and uncertainties set forth in the "Risk Factors" section of Appian's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Moreover, Appian operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Appian's management to predict all risks, nor can Appian assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Appian may make. In light of these risks, uncertainties, and assumptions, Appian cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Appian is under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. Investor Contact Jack Andrews Vice President, Investor Relations investors@appian.com Media Contact Cindy Cheng Senior Director, Global Communications pr@appian.com APPIAN CORPORATIONCONSOLIDATED BALANCE SHEETS(in thousands, except par value and share data) As of December 31, 2024 2023 Assets Current assets Cash and cash equivalents$118,552 $149,351 Short-term investments and marketable securities 41,308 9,653 Accounts receivable, net of allowance of $3,396 and $2,606, respectively 195,069 171,561 Deferred commissions, current 36,630 34,261 Prepaid expenses and other current assets 43,984 49,529 Total current assets 435,543 414,355 Property and equipment, net of accumulated depreciation of $32,142 and $25,141, respectively 37,109 42,682 Goodwill 25,555 27,106 Intangible assets, net of accumulated amortization of $5,341 and $4,152, respectively 2,240 3,889 Right-of-use assets for operating leases 31,081 39,975 Deferred commissions, net of current portion 60,540 59,764 Deferred tax assets 4,129 3,453 Other assets 24,842 36,279 Total assets$621,039 $627,503 Liabilities and Stockholders' Equity Current liabilities Accounts payable$4,322 $6,174 Accrued expenses 11,388 11,046 Accrued compensation and related benefits 34,223 38,003 Deferred revenue 281,760 235,992 Debt 9,598 66,368 Operating lease liabilities 12,378 11,698 Other current liabilities 1,087 1,891 Total current liabilities 354,756 371,172 Long-term debt 240,826 140,221 Non-current operating lease liabilities 52,189 59,067 Deferred revenue, non-current 5,477 4,700 Deferred tax liabilities -- 2 Other non-current liabilities 431 -- Total liabilities 653,679 575,162 Stockholders' equity Class A common stock -- par value $0.0001; 500,000,000 shares authorized as of December 31, 2024 and 2023 and 42,938,701 and 42,169,970 shares issued and outstanding as of December 31, 2024 and 2023, respectively 4 4 Class B common stock -- par value $0.0001; 100,000,000 shares authorized as December 31, 2024 and 2023 and 31,090,085 and 31,196,796 shares issued and outstanding as of December 31, 2024 and 2023, respectively 3 3 Additional paid-in capital 591,281 595,781 Accumulated other comprehensive loss (11,774) (23,555)Accumulated deficit (612,154) (519,892)Total stockholders' equity (32,640) 52,341 Total liabilities and stockholders' equity$621,039 $627,503 APPIAN CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2024 2023 2024 2023 (unaudited) Revenue Subscriptions$136,779 $115,783 $490,568 $412,337 Professional services 29,906 29,536 126,454 133,026 Total revenue 166,685 145,319 617,022 545,363 Cost of revenue Subscriptions 13,873 11,071 53,487 43,563 Professional services 21,812 23,244 96,692 99,759 Total cost of revenue 35,685 34,315 150,179 143,322 Gross profit 131,000 111,004 466,843 402,041 Operating expenses Sales and marketing 55,272 61,043 230,885 242,381 Research and development 37,188 34,596 154,977 153,098 General and administrative 33,507 32,193 141,834 114,535 Total operating expenses 125,967 127,832 527,696 510,014 Operating income (loss) 5,033 (16,828) (60,853) (107,973)Other non-operating expense (income) Other expense (income), net 12,655 (12,966) 6,773 (17,603)Interest expense 5,661 5,072 23,582 17,862 Total other non-operating expense (income) 18,316 (7,894) 30,355 259 Loss before income taxes (13,283) (8,934) (91,208) (108,232)Income tax expense 364 1,072 1,054 3,209 Net loss$(13,647) $(10,006) $(92,262) $(111,441)Net loss per share: Basic and diluted$(0.18) $(0.14) $(1.26) $(1.52)Weighted average common shares outstanding: Basic and diluted 73,953 73,310 72,988 73,102 APPIAN CORPORATIONSTOCK-BASED COMPENSATION EXPENSE(in thousands) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (unaudited) Cost of revenue Subscriptions$207 $212 $848 $925Professional services 1,310 1,457 5,674 6,055Operating expenses Sales and marketing 1,930 2,380 8,200 10,842Research and development 2,857 3,020 11,716 12,486General and administrative 2,730 3,103 12,607 13,079Total stock-based compensation expense$9,034 $10,172 $39,045 $43,387 APPIAN CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Year Ended December 31, 2024 2023 Cash flows from operating activities: Net loss$(92,262) $(111,441)Adjustments to reconcile net loss to net cash provided by (used by) operating activities: Stock-based compensation 39,045 43,387 Depreciation expense and amortization of intangible assets 10,030 9,473 Lease impairment charges 5,462 -- Bad debt expense 1,760 1,091 Amortization of debt issuance costs 589 444 Benefit for deferred income taxes (899) (1,541)Foreign currency transaction losses (gains), net 16,745 (12,263)Changes in assets and liabilities: Accounts receivable (28,353) (1,868)Prepaid expenses and other assets 16,551 (54,753)Deferred commissions (3,144) (8,043)Accounts payable and accrued expenses (871) (1,394)Accrued compensation and related benefits (2,947) (3,157)Other current and non-current liabilities (1,478) (1,134)Deferred revenue 49,309 28,668 Operating lease assets and liabilities (2,659) 2,089 Net cash provided by (used by) operating activities 6,878 (110,442)Cash flows from investing activities: Proceeds from maturities of investments 20,038 91,670 Purchases of investments (51,630) (53,443)Purchases of property and equipment (3,798) (9,637)Net cash (used by) provided by investing activities (35,390) 28,590 Cash flows from financing activities: Proceeds from borrowings 50,000 92,000 Payments for debt issuance costs (463) (276)Debt repayments (6,250) (3,563)Repurchase of common stock (50,019) -- Payments for employee taxes related to the net share settlement of equity awards (7,987) (9,748)Proceeds from exercise of common stock options 14,461 752 Net cash (used by) provided by financing activities (258) 79,165 Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash (2,029) 1,657 Net decrease in cash, cash equivalents, and restricted cash (30,799) (1,030)Cash, cash equivalents, and restricted cash at beginning of period 149,351 150,381 Cash, cash equivalents, and restricted cash at end of period$118,552 $149,351 Supplemental cash flow information: Cash paid for interest$22,574 $16,906 Cash paid for income taxes$3,334 $3,999 Supplemental non-cash investing and financing information: Accrued capital expenditures$155 $654 APPIAN CORPORATIONRECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES(unaudited, in thousands, except per share data) GAAP Measure Stock-Based Compensation Litigation Expense JPI Amortization Severance Costs Lease Impairment and Lease-Related Charges Short-Swing Profit Payment Non-GAAP MeasureThree Months Ended December 31, 2024Subscriptions cost of revenue$13,873 $(207) $ -- $ -- $ -- $ -- $ -- $13,666 Professional services cost of revenue 21,812 (1,310) -- -- -- -- -- 20,502 Total cost of revenue 35,685 (1,517) -- -- -- -- -- 34,168 Total operating expense 125,967 (7,517) (1,160) (3,152) -- (318) -- 113,820 Operating income 5,033 9,034 1,160 3,152 -- 318 -- 18,697 Income tax expense 364 241 -- -- -- -- -- 605 Net (loss) income (13,647) 8,793 1,160 3,152 -- 318 -- (224)Net (loss) income per share, basic and diluted(a)$(0.18) $0.12 $0.02 $0.04 $ -- $ -- $ -- $ -- Year Ended December 31, 2024 Subscriptions cost of revenue$53,487 $(848) $ -- $ -- $ -- $ -- $ -- $52,639 Professional services cost of revenue 96,692 (5,674) -- -- (1,398) -- -- 89,620 Total cost of revenue 150,179 (6,522) -- -- (1,398) -- -- 142,259 Total operating expense 527,696 (32,523) (4,602) (15,795) (4,136) (6,104) -- 464,536 Operating (loss) income (60,853) 39,045 4,602 15,795 5,534 6,104 -- 10,227 Income tax expense 1,054 1,499 -- -- 1,096 -- -- 3,649 Net (loss) income (92,262) 37,546 4,602 15,795 4,438 6,104 (1,799) (25,576)Net (loss) income per share, basic and diluted$(1.26) $0.51 $0.06 $0.22 $0.06 $0.08 $(0.02) $(0.35) (a) Per share amounts do not foot due to rounding. GAAP Measure Stock-Based Compensation Litigation Expense JPI Amortization Severance Costs Non-GAAP MeasureThree Months Ended December 31, 2023Subscriptions cost of revenue$11,071 $(212) $ -- $ -- $ -- $10,859 Professional services cost of revenue 23,244 (1,457) -- -- -- 21,787 Total cost of revenue 34,315 (1,669) -- -- -- 32,646 Total operating expense 127,832 (8,503) (708) (4,553) -- 114,068 Operating (loss) income (16,828) 10,172 708 4,553 -- (1,395)Income tax expense 1,072 571 -- -- -- 1,643 Net (loss) income (10,006) 9,601 708 4,553 -- 4,856 Net (loss)) income per share, basic(a)$(0.14) $0.13 $0.01 $0.06 $ -- $0.07 Net (loss) income per share, diluted(b)$(0.14) $0.13 $0.01 $0.06 $ -- $0.06 Year Ended December 31, 2023Subscriptions cost of revenue$43,563 $(925) $ -- $ -- $(30) $42,608 Professional services cost of revenue 99,759 (6,055) -- -- (158) 93,546 Total cost of revenue 143,322 (6,980) -- -- (188) 136,154 Total operating expense 510,014 (36,407) 2,064 (6,038) (6,111) 463,522 Operating (loss) income (107,973) 43,387 (2,064) 6,038 6,299 (54,313)Income tax expense 3,209 1,302 -- -- 139 4,650 Net (loss) income (111,441) 42,085 (2,064) 6,038 6,160 (59,222)Net (loss) income per share, basic and diluted$(1.52) $0.58 $(0.03) $0.08 $0.08 $(0.81) (a) Per share amounts do not foot due to rounding. (b) Accounts for the impact of 2.0 million shares of dilutive securities resulting in total diluted shares of 75.3 million. Three Months Ended December 31, Year Ended December 31, 2024 2024 2023 2024 2023 Reconciliation of adjusted EBITDA: GAAP net loss$(13,647) $(10,006) $(92,262) $(111,441)Other expense (income), net 12,655 (12,966) 6,773 (17,603)Interest expense 5,661 5,072 23,582 17,862 Income tax expense 364 1,072 1,054 3,209 Depreciation expense and amortization of intangible assets 2,527 2,427 10,030 9,473 Stock-based compensation expense 9,034 10,172 39,045 43,387 Litigation Expense 1,160 708 4,602 (2,064)JPI Amortization 3,152 4,553 15,795 6,038 Severance Costs -- -- 5,534 6,299 Lease Impairment and Lease-Related Charges 318 -- 6,104 -- Adjusted EBITDA$21,224 $1,032 $20,257 $(44,840) APPNAppian Corp $34.607.99% Watchlist Overview Market News and Data brought to you by Benzinga APIs

Nova Reports Record Fourth Quarter and Full Year 2024 Results - Nova (NASDAQ:NVMI)

REHOVOT, Israel, Feb. 13, 2025 /PRNewswire/ -- Nova NVMI today announced financial results for the fourth quarter and full year ended December 31, 2024. Fourth Quarter 2024 Highlights: Record Quarterly revenue of $194.8 million, a 9% QoQ increase, exceeding the Company guidance and up 45% YoY.GAAP net income of $50.5 million, or $1.58 per diluted share, up 32% YoY.Record non-GAAP net income of $62.3 million, or $1.94 per diluted share, exceeding the Company guidance, and up 43% YoY.Record sales of materials metrology, driven by sales of Nova Metrion and Nova Veraflex platformsRecord sales for dimensional metrology stand-alone solutions, driven by demand for unique capabilities in advanced packaging and GAA manufacturing. Full Year 2024 Highlights: Record annual revenue of $672.4 million up 30% YoYRecord GAAP net income of $183.8 million, or $5.75 per diluted share up 34% YoYRecord Non-GAAP net income of $214.9 million, or $6.69 per diluted share up 38% YoYRecord sales for advanced packaging processes, more than doubling revenues from the segmentRecord sales of materials metrology, driven by growing adoption of the Company's solutions across market segments GAAP Results (K) Q4 2024 Q3 2024 Q4 2023 FY 2024 FY 2023 Revenues $194,766 $178,974 $134,219 $672,396 $517,922 Net Income $50,481 $51,279 $38,068 $183,762 $136,310 Earnings per Diluted Share $1.58 $1.60 $1.20 $5.75 $4.28 Non-GAAP Results (K) Q4 2024 Q3 2024 Q4 2023 FY 2024 FY 2023 Net Income $62,302 $56,056 $43,597 $214,926 $155,891 Earnings per Diluted Share $1.94 $1.74 $1.36 $6.69 $4.86 A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. See also "Use of Non-GAAP Adjusted Financial Measures" section. Management Comments "Nova continues to outperform the market, with quarterly and annual sales records which exceeded the high end of the guidance in both revenue and profitability," said Gaby Waisman, President and CEO. "As we reflect on the past year, we count multiple achievements across our product lines, including strategic penetrations into leading manufacturers, an evolving position in new segments, and a growing market share. All of these, combined with Nova's long-term strategy for perpetual growth, set the stage for our continued growth in 2025." 2025 First Quarter Financial Outlook Management provided an outlook for the first quarter, the period ending March 31, 2025. Based on current estimates, management expects: $205 million to $215 million in revenue$1.75 to $1.91 in diluted GAAP EPS$2.00 to $2.16 in diluted non-GAAP EPS 2024 Fourth Quarter Results Total revenues for the fourth quarter of 2024 were $194.8 million, an increase of 9% compared with the third quarter of 2024 and an increase of 45% compared with the fourth quarter of 2023. Gross margin in the fourth quarter of 2024 was 56.4%, compared with 56.6% in the third quarter of 2024 and 55.1% in the fourth quarter of 2023. Operating expenses in the fourth quarter of 2024 were $54.5 million, compared with $52.1 million in the third quarter of 2024 and $40.4 million in the fourth quarter of 2023. On a GAAP basis, the Company reported net income of $50.5 million, or $1.58 per diluted share, in the fourth quarter of 2024. This is compared with net income of $51.3 million, or $1.60 per diluted share, in the third quarter of 2024, and $38.1 million, or $1.20 per diluted share, in the fourth quarter of 2023. On a non-GAAP basis, the Company reported net income of $ 62.3 million, or $1.94 per diluted share, in the fourth quarter of 2024. This is compared with net income of $ 56.1 million, or $1.74 per diluted share, in the third quarter of 2024, and $43.6 million, or $1.36 per diluted share, in the fourth quarter of 2023. 2024 Full Year Results Total revenues for 2024 were $672.4 million, an increase of 30% compared to total revenues of $517.9 million for 2023. Gross margin in 2024 was 57.6%, compared with 56.6% in 2023. Operating expenses in 2024 were $199.5 million, compared with operating expenses of $160.9 million in 2023. On a GAAP basis, the Company reported net income of $183.7 million, or $5.75 per diluted share, in 2024. This is compared with a net income of $136.3 million, or $4.28 per diluted share, in 2023. On a non-GAAP basis, the Company reported net income of $214.9 million, or $6.69 per diluted share, in 2024. This is compared with net income of $155.9 million, or $4.86 per diluted share, in 2023. Conference Call Information Nova will host a conference call today, February 13, 2025, at 8:30 a.m. Eastern Time, to discuss the Company's fourth quarter 2024 financial results and outlook. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number. U.S. TOLL-FREE Dial-in Number: 1-833-816-1427 ISRAEL TOLL-FREE Dial-in Number: 1-809-213-284 INTERNATIONAL Dial-in Number: 1-412-317-0519 At: 8:30 a.m. Eastern Time 5:30 a.m. Pacific Time 3:30 p.m. Israel Time The conference call will also be webcast live from a Link on Nova's website at https://www.novami.com/investors/events/. A replay of the conference call will be available from February 13, 2025, at 11:30 a.m. Eastern Time until August 15, 2025, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: Replay Dial-in U.S. TOLL-FREE: 1-877-344-7529 Replay Dial-in INTERNATIONAL: 1-412-317-0088 Replay Pin Number: 8533745 A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/. About Nova Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art, high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into developing and producing the most advanced semiconductor devices. Nova's unique capability to deliver innovative solutions enables its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices worldwide. Additional information may be found on Nova's website link - https://www.novami.com/. Nova is traded on the Nasdaq and TASE, Nasdaq ticker symbol NVMI. Use of Non-GAAP Adjusted Financial Measures This press release provides financial measures that exclude amortization of acquired intangible assets, stock-based compensation expenses, acquisition related expenses, revaluation of operating lease liabilities and remeasurement of intercompany loans, amortization of issuance costs and tax effect of non-GAAP adjustment, as applicable, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhance management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allow greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables. Forward-Looking Statements This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding, but not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: increased information technology security threats and sophisticated computer crime; foreign political and economic risks including supply-chain difficulties; regulations that could restrict our operations such as economic sanctions and export restrictions; changes in U.S. trade policies; indirect effects of the Russia - Ukraine conflict; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our intellectual property; open source technology exposure, including risks related to artificial intelligence; failure to compete effectively or to respond to rapid technological changes; consolidation in our industry; difficulty in predicting the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; difficulty in integrating current or future acquisitions; lengthy sales cycle and customer delays in orders; risks related to conditions in Israel, including related to the war against Hamas and other terrorist organizations; risks related to our convertible notes; currency fluctuations; and quarterly fluctuations in our operating results. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 20, 2024. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release. (Tables to Follow) NOVA LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) - (Unaudited) As of December 31, ASSETS 2024 2023 Current assets Cash and cash equivalents 157,779 107,574 Short-term interest-bearing bank deposits 211,877 119,850 Marketable securities 216,910 216,258 Trade accounts receivable, net 139,318 111,256 Inventories 156,599 138,198 Other current assets 19,466 17,084 Total current assets 901,949 710,220 Non-current assets Marketable securities 225,818 191,351 Interest-bearing bank deposits and restricted deposits 7,847 6,254 Deferred tax assets 31,639 23,583 Operating lease right-of-use assets 51,193 41,856 Property plant and equipment, net 81,746 66,874 Intangible assets, net 31,458 39,184 Goodwill 48,317 50,080 Other long-term assets 10,455 4,405 Total non-current assets 488,473 423,587 Total assets 1,390,422 1,133,807 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Convertible senior notes, net 180,564 197,678 Trade accounts payable 59,578 35,158 Deferred revenues 72,886 41,978 Operating lease current liabilities 7,169 6,703 Other current liabilities 68,033 41,294 Total current liabilities 388,230 322,811 Non-current liabilities Operating lease long-term liabilities 48,363 39,762 Long-term deferred tax liability 8,495 10,574 Other long-term liabilities 17,539 9,908 Total non-current liabilities 74,397 60,244 Shareholders' equity 927,795 750,752 Total liabilities and shareholders' equity 1,390,422 1,133,807 NOVA LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data) - (Unaudited) Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Revenues: Products 158,546 104,108 538,350 405,037 Services 36,220 30,111 134,046 112,885 Total revenues 194,766 134,219 672,396 517,922 Total cost of revenues 84,835 60,207 285,310 224,745 Gross profit 109,931 74,012 387,086 293,177 Operating expenses: Research and development, net 30,909 21,290 110,257 88,043 Sales and marketing 15,980 13,580 65,090 52,467 General and administrative 7,571 5,480 24,199 20,404 Total operating expenses 54,460 40,350 199,546 160,914 Operating income 55,471 33,662 187,540 132,263 Financing income, net 3,756 7,283 28,747 22,436 Income before taxes on income 59,227 40,945 216,287 154,699 Income tax expenses 8,746 2,877 32,525 18,389 Net income for the period 50,481 38,068 183,762 136,310 Earnings per share: Basic 1.72 1.31 6.31 4.73 Diluted 1.58 1.20 5.75 4.28 Shares used in calculation of earnings per share (in thousands): Basic 29,304 28,975 29,113 28,828 Diluted 32,062 32,023 32,138 32,089 NOVA LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) - (Unaudited) Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Cash flows from operating activities: Net income 50,481 38,068 183,762 136,310 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 3,029 2,756 11,736 10,344 Amortization of intangible assets 1,267 1,461 5,643 5,857 Amortization of premium and accretion of discount on marketable securities, net (1,820) (1,134) (7,178) (3,001) Amortization of debt issuance costs 310 324 1,280 1,284 Share-based compensation 6,349 5,654 25,209 18,286 Net effect of exchange rate fluctuation 4,109 (2,591) 3,025 1,754 Changes in assets and liabilities: Trade accounts receivable, net (26,196) (18,606) (29,051) (1,183) Inventories 876 2,851 (23,897) (26,000) Other current and long-term assets (4,097) (361) (9,671) (5,752) Deferred tax, net (4,849) (185) (9,722) (6,241) Operating lease right-of-use assets 559 259 3,668 3,050 Trade accounts payable 6,309 8,917 17,506 (7,807) Deferred revenues 19,494 (292) 34,553 11,391 Operating lease liabilities 97 2,091 (3,938) (3,221) Other current and long-term liabilities 12,686 (9,671) 32,299 (11,352) Accrued severance pay, net (82) 64 42 (188) Net cash provided by operating activities 68,522 29,605 235,266 123,531 Cash flows from investment activities: Change in short-term and long-term interest-bearing bank deposits (4,339) 31,367 (93,595) (29,658) Investment in marketable securities (60,175) (106,695) (271,987) (273,572) Proceeds from maturity of marketable securities 57,421 44,443 246,397 195,087 Purchase of property and equipment (8,121) (7,601) (17,215) (17,188) Net cash used in investing activities (15,214) (38,486) (136,400) (125,331) Cash flows from financing activities: Purchases of treasury shares (30,000) - (30,000) (112) Conversion of convertible senior notes (18,506) - (18,506) - Proceeds from exercise of options 90 - 160 122 Net cash provided by financing activities (48,416) - (48,346) 10 Effect of exchange rate fluctuations on cash and cash equivalents (1,076) (25) (315) (2,357) Changes in cash and cash equivalents and restricted cash 3,816 (8,906) 50,205 (4,147) Cash and cash equivalents and restricted cash -beginning of period 153,963 116,480 107,574 111,721 Cash and cash equivalents - end of period 157,779 107,574 157,779 107,574 NOVA LTD. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (U.S. dollars in thousands, except percentage and per share data) - (Unaudited) Three months ended December 31, 2024 September 30, 2024 December 31, 2023 GAAP gross profit 109,931 101,333 74,012 Stock-based compensation* 1,805 1,722 1,537 Amortization of acquired intangible assets 1,182 1,380 1,354 Non-GAAP gross profit 112,918 104,435 76,903 GAAP gross margin as a percentage of revenues 56 % 57 % 55 % Non-GAAP gross margin as a percentage of revenues 58 % 58 % 57 % GAAP operating income 55,471 49,231 33,662 Stock-based compensation* 6,349 6,194 5,654 Acquisition related expenses 917 - - Amortization of acquired intangible assets 1,267 1,467 1,461 Non-GAAP operating income 64,004 56,892 40,777 GAAP operating margin as a percentage of revenues 28 % 28 % 25 % Non-GAAP operating margin as a percentage of revenues 33 % 32 % 30 % GAAP net income 50,481 51,279 38,068 Stock-based compensation* 6,349 6,194 5,654 Acquisition related expenses 917 - - Amortization of acquired intangible assets 1,267 1,467 1,461 Amortization of debt issuance costs 310 326 324 Revaluation of operating lease and intercompany loans 4,706 (2,309) (827) Tax effect of non-GAAP adjustments (1,728) (901) (1,083) Non-GAAP net income 62,302 56,056 43,597 GAAP basic earnings per share 1.72 1.76 1.31 Non-GAAP basic earnings per share 2.13 1.93 1.50 GAAP diluted earnings per share 1.58 1.60 1.20 Non-GAAP diluted earnings per share 1.94 1.74 1.36 Shares used for calculation of earnings per share (in thousands): Basic 29,304 29,099 28,975 Diluted 32,062 32,238 32,023 * Stock-based compensation for the three months ended December 31, 2024 included in - Cost of revenues - 1,805; Research and development, net - 2,747; Sales and marketing - 1,234; General and administrative - 563. NOVA LTD. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (U.S. dollars in thousands, except percentage and per share data) - (Unaudited) Year ended December 31, 2024 2023 GAAP gross profit 387,086 293,177 Stock-based compensation* 7,013 4,946 Acquisition-related inventory step-up 5,284 5,430 Non-GAAP gross profit 399,383 303,553 GAAP gross margin as a percentage of revenues 58 % 57 % Non-GAAP gross margin as a percentage of revenues 59 % 59 % GAAP operating income 187,540 132,263 Stock-based compensation* 25,209 18,286 Acquisition related expenses 917 - Amortization of acquired intangible assets 5,643 5,857 Non-GAAP operating income 219,309 156,406 GAAP operating margin as a percentage of revenues 28 % 26 % Non-GAAP operating margin as a percentage of revenues 33 % 30 % GAAP net income 183,762 136,310 Stock-based compensation* 25,209 18,286 Acquisition related expenses 917 - Amortization of acquired intangible assets 5,643 5,857 Amortization of debt issuance costs 1,280 1,284 Revaluation of operating lease liabilities 3,221 (1,994) Tax effect of non-GAAP adjustments (5,106) (3,852) Non-GAAP net income 214,926 155,891 GAAP basic earnings per share 6.31 4.73 Non-GAAP basic earnings per share 7.38 5.41 GAAP diluted earnings per share 5.75 4.28 Non-GAAP diluted earnings per share 6.69 4.86 Shares used for calculation of earnings per share (in thousands): Basic 29,113 28,828 Diluted 32,138 32,089 * Stock-based compensation for the year ended December 31, 2024, included in - Cost of revenues - 7,013; Research and development, net - 11,179; Sales and marketing - 4,864; General and administrative - 2,153. NOVA LTD. SUPPLEMENTAL INFORMATION - RECONCILIATION OF FIRST QUARTER 2025 GAAP TO NON-GAAP GUIDANCE (U.S. dollars) (Unaudited) Low High Estimated GAAP net income per diluted share 1.75 1.91 Estimated non-GAAP items: Stock-based compensation 0.19 0.19 Amortization of acquired intangible assets and inventory step-up 0.07 0.07 Acquisition related expenses 0.02 0.02 Amortization of issuance costs 0.01 0.01 Tax effect of non-GAAP adjustments (0.04) (0.04) Estimated non-GAAP net income per diluted share 2.00 2.16 Company Contact: Guy Kizner, Chief Financial Officer Tel: +972-73-229-5760 E-mail - investors@novami.com Nova website link - https://www.novami.com/ Investor Relations Contact: Miri Segal MS-IR LLC Tel: +917-607-8654 E-mail - msegal@ms-ir.com Logo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg View original content:https://www.prnewswire.com/news-releases/nova-reports-record-fourth-quarter-and-full-year-2024-results-302375856.html SOURCE Nova NVMINova Ltd $258.755.43% Overview Rating: Good 62.5% Technicals Analysis 100 0100 Financials Analysis 40 0100 Watchlist Overview Market News and Data brought to you by Benzinga APIs

Datasea Reports Second Fiscal Quarter 2025 Revenue of $20.5 Million, Up 81.4% Year-over-Year - Datasea (NASDAQ:DTSS)

Datasea's Top Line Growth Fueled by the Expansion of its State-of-the-Art 5G+AI Multimodal Digital Segment in China BEIJING, Feb. 14, 2025 /PRNewswire/ -- Datasea Inc. DTSS ("Datasea", the "Company", "we", "us", or "our"), a Nevada-based technology company specializing in 5G+AI multimodal digital solutions and acoustic high-tech innovations, today announced its financial results for its second fiscal quarter ended December 31, 2024. The Company reported revenue of approximately $20.5 million, an increase of approximately 81.4% compared to revenue of approximately $11.3 million for the same period in the prior year. The increase was driven by the accelerated adoption of its 5G+AI multimodal digital business services in China due to the Company's continued commercialization of acoustic high-tech products. Ms. Zhixin Liu, CEO of Datasea, commented, "Our strong performance in the second fiscal quarter reflects the successful expansion of our 5G+AI multimodal digital business customer base, where we continue to be an industry leader. We believe the expanding footprint of our 5G+AI customer base and the initial market penetration of our high-margin acoustic products underscore our ability to innovate and capture emerging opportunities. We remain committed to advancing our technological innovation while driving sustainable growth." Financial Highlights Revenue: Revenue for the Company's second fiscal quarter of 2025 was approximately $20.5 million, an increase of approximately 81.4% compared to revenue of approximately $11.3 million for the second fiscal quarter of 2024. This increase was primarily driven by the growth of the Company's 5G+AI multimodal digital business in China, especially the continuous enhancement of the effectiveness and efficiency of 5G multimodal digital products and services through AI technology.Gross Profit: Gross profit for the Company's second fiscal quarter of 2025 was approximately $0.4 million, and our gross margin for the second fiscal quarter was approximately 2.0%. This marks an improvement from the same period in the prior year when the Company recorded gross profit of approximately $0.1 million and a gross margin of approximately 0.9%.Intangible Assets: As of December 31, 2024, and June 30, 2024, the Company's net value of intangible assets was $4,081,544 and $546,001, respectively, reflecting an increase of $3,535,543, or 647%. The increase in intangible assets is crucial to the Company's growth and success. The enhancement of intangible assets, including patents, has simultaneously increased the overall value of the business, promoted sustainable development, and contributed to the Company's long-term success.Inventory: As of December 31, 2024, the Company's inventory was $319,932, an increase of $166,349 from $153,583 on June 30, 2024, marking an increase of 108.31%. The increase in inventory primarily reflects the continued rise in customer orders within the acoustic high-tech business. Maintaining an appropriate inventory level helps the Company address sudden surges in demand or price hikes, secure discounts through bulk purchases, reduce procurement costs, and ensure timely capture of sales opportunities during promotions or peak seasons. The inventory growth reflects the healthy expansion of the Company's business and strategic preparations for future growth. Business Highlights - 5G+AI Multimodal Digital Business 1. Technological Leadership The Company's AI multimodal models have made breakthroughs in areas such as sentiment analysis, machine translation, and natural language processing, expanding the boundaries of intelligent system applications. Currently, the Company is integrating DeepSeek's distributed training methods and mixed-precision training techniques, utilizing half-precision (FP16) and single-precision (FP32) floating-point numbers. After fusing multiple sensory inputs, the models are able to enhance data understanding, analysis accuracy, and decision-making reliability.In line with the Company's business needs, a self-designed Transformer model architecture has been developed, which is capable of processing inputs from multiple modalities in parallel. Datasea's 5G+AI platform incorporates this architecture, utilizing the self-attention mechanism to deeply learn the complex interactions between modalities. This approach excels in applications such as image-text correlation analysis and audio-video synchronization. After integrating DeepSeek's training methods, the platform will further advance in areas such as natural language generation, multilingual processing, code optimization, and logical reasoning, providing more comprehensive and accurate responses. 2. Key Contracts The Company's subsidiaries have signed new contracts worth up to an aggregate of approximately $30 million with Qingdao Ruizhi Yixing, Wuhan Xiaoming Technology, and other clients since last quarter, further reinforcing market penetration. 3. Strategic Collaboration We were selected as a prospective strategic partner by China Mobile Internet (a subsidiary of China Mobile), which has the potential to expand our opportunities for large-scale 5G infrastructure project collaborations.Our 5G+AI platform is capable of serving 52 million enterprises and 124 million individual businesses in China, facilitating digital transformation across sectors including finance, logistics, and agriculture. Business Highlights - Acoustic High-Tech Business 1. Technological Innovation We are focused on the research and application of multiple advanced acoustic technologies, including ultrasound, infrasound, and Schumann resonance. By integrating the latest findings in acoustics, mechanical transduction, and vibration dynamics, the Company is developing AI-driven acoustic high-tech products with unique competitive advantages.We have developed distinct technical expertise in the study and application of non-audible mechanical wave effects, leveraging the cavitation, thermal, and mechanical effects of ultrasound to support a variety of applications such as environmental disinfection, crop pest control, photosynthetic absorption, seed treatment, water purification, safety monitoring, skincare, and healthcare. 2. Product Development Our ultrasonic disinfection machine series and the "Star Dream" non-contact sleep aid device utilize Schumann resonance and AI-powered acoustic algorithms to enhance health living and company's product performance.Our planned calendar year 2025 acoustic product releases include applications in environmental acoustic technology and neurological acoustic technology, such as the development of a pet deodorizing purifier and mechanical wave-based brain cortical cortisol regulation device, both of which target growing consumer markets. 3. Product Placement and Expansion Plans In January 2025, the Company reported that it has partnered with a significant number of beauty and health management companies in Tianjin and Hubei Provinces, introducing acoustic high-tech products to 463 beauty and personal care stores. By the end of calendar year 2025, the Company expects to sell up to 260,000 units of acoustic air disinfection devices and sleep products, with total projected revenue of approximately $19 million (approximately ¥1.33 billion RMB), achieving significant market penetration in Northern China.We plan to expand into the U.S. market, including partnerships with U.S. e-commerce platforms and distributors.We are strengthening our intellectual property (IP) portfolio, enhancing patents covering ultrasound medical imaging, precision acoustic industrial manufacturing, acoustic applications in agriculture, and acoustic IoT (Internet of Things) technologies. Operational and Strategic Outlook Margin Improvement: We intend to drive profitability by scaling high-margin acoustic products (e.g., ultrasonic sterilizers, sleep aids) and offering technical services through the Company's 5G+AI platform, thereby reducing customer acquisition costs for Company's industrial clients.Global Expansion: We plan to accelerate international market entry into the U.S. and Europe and expand our acoustic high-tech business through strategic partnerships and mergers & acquisitions.Gross Margin Improvement: We expect to focus on scaling high-margin acoustic products (e.g., ultrasonic sterilizers, sleep aids) and reducing 5G+AI customer acquisition costs.Global Expansion: We aim to accelerate U.S. and European market entry through partnerships and M&A opportunities in acoustic IoT and precision agriculture. About Datasea Inc. Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in two innovative industries, acoustic high tech and 5G+AI multimodal digitalization. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal digital segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies, precision manufacturing, and ultrasonic, infrasound and directional sound technology in its acoustics business to combat viruses and prevent human infections, and it is also developing applications in medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to enter the U.S. markets and to mark its global expansion plan. For additional information, please visit www.dataseainc.com. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the SEC, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law. Investor and Media Contact: Datasea Investor Relations Email: investorrelations@shuhaixinxi.com sunhezhi@shuhaixinxi.com DATASEA INC. CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 JUNE 30, 2024 (UNAUDITED) ASSETS CURRENT ASSETS Cash $ 268,101 $ 181,262 Accounts receivable 210,980 718,546 Inventory, net 319,932 153,583 Value-added tax prepayment 111,300 107,545 Prepaid expenses and other current assets 684,783 1,486,956 Total current assets 1,595,096 2,647,892 NONCURRENT ASSETS Property and equipment, net 41,399 48,466 Intangible assets, net 4,081,544 546,001 Right-of-use assets, net 185,494 49,345 Total noncurrent assets 4,308,437 643,812 TOTAL ASSETS $ 5,903,533 $ 3,291,704 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 314,367 $ 1,075,641 Unearned revenue 135,514 49,239 Accrued expenses and other payables 499,637 596,714 Due to related parties 411,619 654,560 Operating lease liabilities 79,308 53,530 Bank loan payable 1,119,860 1,170,298 Total current liabilities 2,560,305 3,599,982 NONCURRENT LIABILITIES Operating lease liabilities 116,820 - Total noncurrent liabilities 116,820 - TOTAL LIABILITIES 2,677,125 3,599,982 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY (DEFICIT) Common stock, $0.001 par value, 25,000,000 shares authorized, 7,164,402 and 3,589,620 shares issued and outstanding as of December 31, 2024 and June 30, 2024 , respectively 7,164 3,589 Additional paid-in capital 45,633,189 38,957,780 Accumulated comprehensive income 134,302 242,208 Accumulated deficit (42,538,589) (39,440,322) TOTAL COMPANY STOCKHOLDERS' EQUITY (DEFICIT) 3,236,066 (236,745) Noncontrolling interest (9,658) (71,533) TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 3,226,408 (308,278) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 5,903,533 $ 3,291,704 The accompanying notes are an integral part of these consolidated financial statements. DATASEA INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) THREE MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31, 2024 2023 2024 2023 Revenues $ 20,456,404 $ 11,348,469 $ 41,537,498 $ 18,229,212 Cost of revenues 20,038,952 11,246,234 40,923,065 18,052,242 Gross profit 417,452 102,235 614,433 176,970 Operating expenses Selling 407,669 1,149,944 1,403,718 1,234,391 General and administrative 1,173,733 623,456 2,302,136 1,316,516 Research and development 74,402 117,371 177,481 272,375 Total operating expenses 1,655,804 1,890,771 3,883,335 2,823,282 Loss from operations (1,238,352) (1,788,536) (3,268,902) (2,646,312) Non-operating income (expenses) Other income (expenses), net 109,761 (46,187) 165,587 (54,051) Interest income 875 1,623 4,930 1,729 Total non-operating income (expenses), net 110,636 (44,564) 170,517 (52,322) Loss before income tax (1,127,716) (1,833,100) (3,098,385) (2,698,634) Income tax - - - - Loss before noncontrolling interest from continuing operations (1,127,716) (1,833,100) (3,098,385) (2,698,634) Income before noncontrolling interest from discontinued operations - - - 833,546 Less: loss attributable to noncontrolling interest from continuing operations 8,562 (61) (118) (9,993) Less: loss attributable to noncontrolling interest from discontinued operations - - - Net loss attribute to noncontrolling interest 8,562 (61) (118) (9,993) Net loss to the Company from continuing operations (1,136,278) (1,833,039) (3,098,267) (2,688,641) Net income to the Company from discontinued operations - - - 833,546 Net loss to the Company (1,136,278) (1,833,039) (3,098,267) (1,855,095) Other comprehensive item Foreign currency translation gain (loss) attributable to the Company (94,752) 34,601 (107,906) (126,615) Foreign currency translation gain attributable to noncontrolling interest 19,296 116 60,602 29,850 Comprehensive loss attributable to the Company $ (1,231,030) $ (1,798,438) $ (3,206,173) $ (1,981,710) Comprehensive income attributable to noncontrolling interest $ 27,858 $ 55 $ 60,484 $ 19,857 Basic and diluted net loss per share $ (0.16) $ (0.72) $ (0.56) $ (0.82) Weighted average shares used for computing basic and diluted loss per share * 7,170,852 2,538,286 5,582,115 2,250,711 * retroactively reflect 1-for-15 reverse stock split effective on January 19, 2024 The accompanying notes are an integral part of these consolidated financial statements. DATASEA INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY SIX AND THREE MONTHS ENDED DECEMBER 31, 2024 AND 2023 (UNAUDITED) Common Stock Additional paid-in Accumulated Accumulated other comprehensive Noncontrolling Shares Amount capital deficit income Total interest Balance at July 1, 2024 3,589,620 $ 3,590 $ 38,957,780 $ (39,440,322) $ 242,208 $ (236,745) $ (71,533) Net loss - - - (1,961,989) - (1,961,989) (8,680) Noncontrolling interest disposal at closure of the entity - - - - - - 1,391 Issuance of common stock for equity financing 692,308 692 1,958,059 - - 1,958,751 - Issuance of common stock for equity financing - related parties 1,932,224 1,932 3,978,449 - - 3,980,381 - Shares issued for stock compensation expense 75,000 75 374,925 - - 375,000 - Shares issued for purchase of intangible assets from the Company's major shareholders 797,850 798 (798) - - - - Foreign currency translation gain (loss) - - - - (13,154) (13,154) 41,306 Balance at September 30, 2024 7,087,002 7,087 45,268,415 (41,402,311) 229,054 4,102,245 (37,516) Net loss - - - (1,136,278) - (1,136,278) 8,562 Forgiveness of debt by shareholder - - 183,351 - - 183,351 - Shares issued for stock compensation expense 77,400 77 181,423 - - 181,500 - Foreign currency translation gain (loss) - - - - (94,752) (94,752) 19,296 Balance at December 31, 2024 7,164,402 $ 7,164 $ 45,633,189 $ (42,538,589) $ 134,302 $ 3,236,066 $ (9,658) Balance at July 1, 2023 1,889,315 $ 1,889 $ 24,148,868 $ (28,063,258) $ 393,252 $ (3,519,249) $ (60,848) Net loss - - - (22,056) - (22,056) (9,932) Issuance of common stock for equity financing 685,940 686 8,060,600 - - 8,061,286 - Shares issued for stock compensation expense - - 20,100 - - 20,100 - Foreign currency translation loss - - - - (161,216) (161,216) (8) Balance at September 30, 2023 2,575,255 2,575 32,229,568 (28,085,314) 232,036 4,378,865 (70,788) Net loss - - - (1,833,039) - (1,833,039) (61) Shares issued for stock compensation expense - - 22,103 - - 22,103 - Foreign currency translation gain - - - - 34,601 34,601 116 Balance at December 31, 2023 2,575,255 $ 2,575 $ 32,251,671 $ (29,918,353) $ 266,637 $ 2,602,530 $ (70,733) The accompanying notes are an integral part of these consolidated financial statements. DATASEA INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) SIX MONTHS ENDED DECEMBER 31, 2024 2023 Cash flows from operating activities: Loss including noncontrolling interest $ (3,098,385) $ (1,865,088) Adjustments to reconcile loss including noncontrolling interest to net cash used in operating activities: Gain on disposal of subsidiary - (833,546) Bad debt reversal (7,005) - Depreciation and amortization 395,741 276,116 Loss on disposal of fixed assets 3,155 - Operating lease expense 77,320 107,355 Forgiveness of debt by shareholder 184,663 - Stock compensation expense 556,500 42,203 Changes in assets and liabilities: Accounts receivable 504,995 (52,805) Inventory (168,864) 59,809 Value-added tax prepayment (4,710) (25,932) Prepaid expenses and other current assets 802,142 (2,589,743) Accounts payable (759,065) (138,820) Unearned revenue 87,317 (462,043) Accrued expenses and other payables (90,587) (39,242) Payment on operating lease liabilities (70,789) (111,547) Net cash used in operating activities (1,587,572) (5,633,283) Cash flows from investing activities: Acquisition of property and equipment (7,255) (3,683) Acquisition of intangible assets (3,950,272) (68,098) Cash disposed due to disposal of subsidiary - (35) Net cash used in investing activities (3,957,527) (71,816) Cash flows from financing activities: Proceeds from (repayment to) related parties (239,307) 116,841 Proceeds from loan payables - 153,659 Repayment of loan payables (40,698) (2,090,005) Net proceeds from issuance of common stock 5,939,133 8,061,286 Net cash provided by financing activities 5,659,128 6,241,781 Effect of exchange rate changes on cash (27,190) (118,694) Net increase in cash 86,839 417,988 Cash, beginning of period 181,262 19,728 Cash, end of period $ 268,101 $ 437,716 Supplemental disclosures of cash flow information: Cash paid for interest $ 17,973 $ 10,535 Cash paid for income tax $ - $ - Supplemental disclosures of non-cash financing activities: Right-of-use assets obtained in exchange for operating lease liabilities $ 196,783 $ 124,824 Transfer of debt owing to the Company's' CEO to Mr. Wanli Kuai $ - $ 727,503 IMPORTANT NOTICE TO USERS The information provided is a summary only, please refer to the Form 10-Q for the full text of this notice. All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our Forms 10-Q and 10-K. View original content to download multimedia:https://www.prnewswire.com/news-releases/datasea-reports-second-fiscal-quarter-2025-revenue-of-20-5-million-up-81-4-year-over-year-302376882.html SOURCE Datasea Inc. DTSSDatasea Inc $2.502.45% Watchlist Overview Market News and Data brought to you by Benzinga APIs

Cemtrex Reports First Quarter Fiscal Year 2025 Financial Results - Cemtrex (NASDAQ:CETX), Cemtrex (OTC:CETXP)

Hauppauge, NY, Feb. 14, 2025 (GLOBE NEWSWIRE) -- Cemtrex Inc. CETX CETXP)), an advanced security technology and industrial services company, has reported its financial and operational results for the fiscal first quarter ended December 31, 2024. Key Highlights for First Fiscal Quarter 2025 Revenue for Q1'25 decreased 19% to $13.7 million, compared to revenue in the prior year of $16.9 million.AIS revenue increased 7% to $8.3 million, capitalizing on strategic acquisitions and growing market demand.Vicon Innovations: Launched NEXT™ Modular Camera System, integrating groundbreaking AI analytics and Hailo-15 edge AI processing, poised to redefine the surveillance industry.Strategic Momentum: Secured a record-breaking $10.4 million order for Valerus surveillance system expansion Management Commentary Cemtrex Chairman and CEO, Saagar Govil, commented on the results: "The first fiscal quarter of 2025 was highlighted by sustained growth for AIS on high demand for its products and services, offset by a decrease in Vicon revenue as companies delayed orders of multiple projects due to uncertainties with the transition to a new federal administration. Operating loss for the first fiscal quarter of 2025 was $2.3 million, compared to $0.7 million a year ago, mainly due to the decrease in revenue and resulting lower gross profit. Net loss was $28.5 million compared to $1.2 million in the prior year's quarter, primarily due to recognized losses on excess fair value of warrants, a non-cash expense of $25.8 million. "Our Security segment revenue in the first quarter decreased 41% to $5.5 million due to a weaker industrywide demand for security solutions, compounded by order and project delays stemming from uncertainty surrounding the most recent election cycle. Vicon has now renewed its momentum with new orders as the market refocuses and achieved record sales in January 2025. Many of these orders began shipping in the second fiscal quarter of 2025, including a record-breaking $10.4 million order for a state government corrections facility in the mid-Atlantic region. We expect sales for the fiscal second quarter to put us on well on pace to reach or exceed our year-over-year growth target of 15%-20%. "Our optimistic outlook for Vicon is based on the exciting new security technologies, products and partnerships announced in recent months. Vicon introduced NEXT™, a next generation modular camera platform that transforms how security integrators and end-users install, interact, and support their camera systems, which began shipping in February 2025. We have also integrated disruptive AI analytics for detecting armed persons in surveillance footage to be included in NEXT Cameras. With Hailo, an AI chip manufacturer known for its high-performance edge AI processors, we have integrated the groundbreaking Hailo-15 System-on-a-Chip (SoC) into the NEXT Modular Camera System. Taken together, we believe Vicon is well-positioned to leverage these investments in new technologies and products to ramp sales, with an increasing opportunity to grow revenue and gross margin over the next several quarters. "For our Industrial services segment, AIS continued to execute on orders and contract awards, growing 7% to $8.3 million in the first quarter of 2025. From large-scale infrastructure to wastewater infrastructure contracts, AIS's success is powering its strong market position and expanding its growth outlook. AIS has multiple projects set for completion in 2025, and a strong pipeline of orders from leading companies. We also continue to explore additional acquisition opportunities that can build on and accelerate our growth further. "Looking ahead, we believe the strength and reputation of our two segments' products and services will continue to build revenue and shareholder value in 2025. Vicon's next generation cameras and software are leveraging new AI capabilities and technologies to attract attention from new and existing customers to meet their evolving security challenges. AIS is demonstrating its ability to attract multi-million-dollar project wins from leading companies and governmental agencies, with a strong pipeline that will drive additional revenue," concluded Govil. Segment Highlights: Vicon Industries: Vicon Industries revenues for fiscal Q1'25 decreased 41% to $5.5 million.Announced a record breaking $10.4 million order for a state government corrections facility in the mid-Atlantic region, expanding the customer's Valerus surveillance security system with additional hardware, including enhanced storage infrastructure.Unveiled NEXT, a next generation modular camera platform that transforms how security integrators and end-users install, interact, and support their camera systems, which began shipping in January 2025.Secured a partnership with Hailo, an AI chip manufacturer known for its high-performance edge AI processors, to integrate the groundbreaking Hailo-15 System-on-a-Chip (SoC) into Vicon's NEXT Modular Camera System.Announced the integration of an innovative Artificial Intelligence (AI) gun detection feature in its NEXT Cameras, marking a significant milestone in public safety and security technology. Advanced Industrial Services: Industrial Services segment revenues for fiscal Q1'25 increased 7% to $8.3 million.Awarded two project contracts totaling $6.7 million for upgrades at the Clearwater Road Wastewater Treatment Facility in Derry Township, Pennsylvania. First Quarter Fiscal 2025 Financial Results Overview Revenues for the first fiscal quarter of 2025 were $13.7 million, compared to $16.9 million in the first fiscal quarter of 2024, a decrease of 19%. The decrease in revenue for the year was due to increased demand for the Company's AIS products and services, offset by a decrease in security technology products under our Vicon brand. The Security segment revenues for the quarter ended December 31, 2024, and 2023 were $5.5 million and $9.2 million, respectively, a decrease of 41%, due to decreased demand for security technology products under the Vicon brand. Industrial Services segment revenues for the first quarter of 2025 increased by 7% to $8.3 million, up from $7.7 million in the first quarter of 2024, primarily due to the increase in demand for its products and services. Gross Profit for the three months ended December 31, 2024, was $5.7 million, or 41% of revenues, as compared to gross profit of $7.1 million, or 42% of revenues, for the three months ended December 31, 2023. Total operating expenses for the first fiscal quarter of 2025 were $8.0 million compared to $7.8 million in the first fiscal quarter of 2024. The increase in total operating expenses was primarily driven by increases in salaries and wages, general and administrative expenses, and research and development expenses related to the Security Segment's development of proprietary technology and next generation solutions associated with security and surveillance systems software. Operating loss for the first fiscal quarter of 2025 was $2.3 million as compared to an operating loss of $0.7 million for the first fiscal quarter of 2024. The operating loss was primarily due to the decrease in revenue and resulting lower gross profit. Net loss in the first fiscal quarter of 2025 totaled $28.9 million compared to a net loss of $1.3 million in the first fiscal quarter of 2025. The increase in net loss was primarily due to recognized losses on excess fair value of warrants of $25.8 million, which represents the difference between the fair value of the shares issued and the value of the warrants exercised, following a recently completed reverse stock split. Cash, cash equivalents and restricted cash as of December 31, 2024, was $5.5 million, compared to $5.4 million as of September 30, 2024. Inventories increased to $11.1 million at December 31, 2024, from $7.0 million at September 30, 2024. About Cemtrex Cemtrex Inc. (CETX) is a company that owns two operating subsidiaries: Vicon Industries Inc and Advanced Industrial Services Inc. Vicon Industries, a subsidiary of Cemtrex Inc., is a global leader in advanced security and surveillance technology to safeguard businesses, schools, municipalities, hospitals and cities. Since 1967, Vicon delivers mission-critical security surveillance systems, specializing in engineering complete security solutions that simplify deployment, operation and ongoing maintenance. Vicon provides security solutions for some of the largest municipalities and businesses in the U.S. and around the world, offering a wide range of cutting-edge and compliant security technologies, from AI-driven video analytics to fully integrated access control solutions. For more information visit www.vicon-security.com AIS - Advanced Industrial Services, a subsidiary of Cemtrex, Inc., is a premier provider of industrial contracting services including millwrighting, rigging, piping, electrical, welding. AIS Installs high precision equipment in a wide variety of industrial markets including automotive, printing & graphics, industrial automation, packaging, and chemicals. AIS owns and operates a modern fleet of custom designed specialty equipment to assure safe and quick installation of your production equipment. Our talented staff participates in recurring instructional training, provided to ensure that the most current industry methods are being utilized to provide an efficient and safe working environment. For more information visit www.ais-york.com For more information visit www.cemtrex.com. This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading "Risk Factors" contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law. Investor Relations Chris Tyson Executive Vice President - MZ North America Direct: 949-491-8235 CETX@mzgroup.us www.mzgroup.us Cemtrex, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) December 31, September 30, 2024 2024 Assets Current assets Cash and cash equivalents $4,224,130 $3,897,511 Restricted cash 1,240,124 1,522,881 Trade receivables, net 9,202,802 11,159,676 Trade receivables, net - related party 524,838 685,788 Inventory, net 11,115,435 6,988,529 Contract assets, net 1,541,239 985,207 Prepaid expenses and other current assets 1,195,128 1,456,687 Total current assets 29,043,696 26,696,279 Property and equipment, net 9,695,289 9,133,578 Right-of-use operating lease assets 1,837,769 1,933,378 Royalties receivable, net - related party 274,756 456,611 Goodwill 3,708,347 3,708,347 Other 2,129,566 2,187,265 Total Assets $46,689,423 $44,115,458 Liabilities & Stockholders' Equity Current liabilities Accounts payable $3,469,117 $4,520,173 Sales tax payable 9,515 73,024 Revolving line of credit 4,096,898 3,125,011 Current maturities of long-term liabilities 6,745,423 4,732,377 Operating lease liabilities - short-term 845,535 832,823 Deposits from customers 320,130 408,415 Accrued expenses 1,628,618 1,393,902 Accrued payable on inventory in transit 5,149,660 640,450 Contract liabilities 1,279,185 1,254,204 Deferred revenue 1,206,052 1,297,616 Accrued income taxes 163,170 314,827 Total current liabilities 24,913,303 18,592,822 Long-term liabilities Long-term debt 11,893,371 13,270,178 Long-term operating lease liabilities 1,049,307 1,159,204 Other long-term liabilities 307,468 274,957 Deferred Revenue - long-term 560,653 658,019 Warrant liabilities 9,454,842 5,199,436 Total long-term liabilities 23,265,641 20,561,794 Total liabilities 48,178,944 39,154,616 Commitments and contingencies - - Stockholders' equity Preferred stock , $0.001 par value, 10,000,000 shares authorized, Series 1, 3,000,000 shares authorized, 2,579,994 shares issued and 2,515,894 shares outstanding as of December 31, 2024 and 2,456,827 shares issued and 2,392,727 shares outstanding as of September 30, 2024 (liquidation value of $10 per share) 2,580 2,457 Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at December 31, 2024 and September 30, 2024 50 50 Common stock, $0.001 par value, 70,000,000 shares authorized, 1,784,575 shares issued and outstanding at December 31, 2024 and 14,176 shares issued and outstanding at September 30, 2024 1,785 14 Additional paid-in capital 95,876,237 73,262,536 Accumulated deficit (100,109,753) (71,355,386)Treasury stock, 64,100 shares of Series 1 Preferred Stock at December 31, 2024, and September 30, 2024 (148,291) (148,291) Accumulated other comprehensive income 2,817,858 2,949,297 Total Cemtrex stockholders' equity (1,559,534) 4,710,677 Non-controlling interest 70,013 250,165 Total liabilities and stockholders' equity $46,689,423 $44,115,458 Cemtrex, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) For the three months ended December 31, 2024 December 31, 2023 Revenues 13,739,899 16,878,166 Cost of revenues 8,037,963 9,795,767 Gross profit 5,701,936 7,082,399 Operating expenses General and administrative 7,093,289 6,971,966 Research and development 890,083 848,805 Total operating expenses 7,983,372 7,820,771 Operating loss (2,281,436) (738,372)Other (expense)/income Other income, net 34,973 78,411 Interest expense (483,913) (583,683)Loss on exercise of warrant liabilities (15,796,105) - Changes in fair value of warrant liability (10,020,212) - Total other expense, net (26,265,257) (505,272)Net loss before income taxes (28,546,693) (1,243,644)Income tax expense (120,538) (70,751)Loss from Continuing operations (28,667,231) (1,314,395)(Loss)/income from discontinued operations, net of tax (267,288) 10,492 Net loss (28,934,519) (1,303,903)Less net loss in noncontrolling interest (180,152) (96,409)Net loss attributable to Cemtrex, Inc. stockholders $(28,754,367) $(1,207,494)(Loss)/income per share - Basic & Diluted Continuing Operations $(16.15) $(2,440.85)Discontinued Operations $(0.15) $21.03 Weighted Average Number of Shares-Basic & Diluted 1,764,341 499 Cemtrex, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) For the three months ended December 31, 2024 2023 Cash Flows from Operating Activities Net loss $(28,934,519) $(1,303,903) Adjustments to reconcile net loss to net cash used by operating activities Depreciation and amortization 337,259 368,301 Loss on disposal of property and equipment 18,846 - Noncash lease expense 254,695 193,281 Bad debt (recovery)/expense (7,367) 11,964 Contract modification - related party 280,545 - Share-based compensation 4,087 7,557 Shares issued to pay for services - 40,000 Accrued interest on notes payable 262,107 327,132 Non-cash royalty income (13,797) (13,282)Amortization of original issue discounts on notes payable 4,167 - Loan origination costs 5,000 18,133 Loss on exercise of warrant liabilities 15,796,105 - Changes in fair value of warrant liability 10,020,212 - Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: Trade receivables 1,964,241 (696,824)Trade receivables - related party 66,057 (163,349)Inventory (4,126,906) 800,602 Contract assets (556,032) 45,066 Prepaid expenses and other current assets 261,559 636,906 Other assets 157,699 (54,592)Accounts payable (1,051,056) (2,072,392)Accounts payable - related party - 221 Sales tax payable (63,509) (25,116)Operating lease liabilities (256,271) (193,130)Deposits from customers (88,285) 26,179 Accrued expenses 4,743,926 (941,698)Contract liabilities 24,981 8,406 Deferred revenue (188,930) (54,982)Income taxes payable (149,142) (7,823)Other liabilities 32,511 (95,730)Net cash used by operating activities (1,201,817) (3,139,073) Cash Flows from Investing Activities Purchase of property and equipment (924,428) (290,666)Proceeds from sale of property and equipment 5,529 - Royalties on related party revenues 10,000 - Proceeds from sale of marketable securities - 356 Investment in MasterpieceVR (100,000) (100,000)Net cash used by investing activities (1,008,899) (390,310) Cash Flows from Financing Activities Proceeds on revolving line of credit 7,025,841 11,655,935 Payments on revolving line of credit (6,053,954) (8,371,144)Payments on debt (124,912) (2,304,903)Payments on Paycheck Protection Program Loans (10,123) (10,120)Proceeds on bank loans - 28,331 Proceeds from notes payable 500,000 - Proceeds from warrant exercises 1,050,597 - Net cash provided by financing activities 2,387,449 998,099 Effect of currency translation (132,871) 198,454 Net decrease in cash, cash equivalents, and restricted cash 176,733 (2,531,284)Cash, cash equivalents, and restricted cash at beginning of period 5,420,392 6,349,562 Cash, cash equivalents, and restricted cash at end of period $5,464,254 $4,016,732 Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents $4,224,130 $2,835,216 Restricted cash 1,240,124 1,181,516 Total cash, cash equivalents, and restricted cash $5,464,254 $4,016,732 Cemtrex, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Continued) (Unaudited) Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest $217,639 $238,418 Cash paid during the period for income taxes, net of refunds $269,680 $176,378 Supplemental Schedule of Non-Cash Investing and Financing Activities Shares issued to pay for services $- $40,000 Financing of fixed asset purchase $- $28,331 Series A Warrant Exercises $21,515,777 $- Noncash recognition of new leases $159,086 $- CETXCemtrex Inc$2.09-2.79%WatchlistOverviewCETXPCemtrex Inc$0.1628-79.0%Market News and Data brought to you by Benzinga APIs

CAMTEK ANNOUNCES RECORD RESULTS FOR THE FOURTH QUARTER & FULL YEAR OF 2024 - Camtek (NASDAQ:CAMT)

Q4 revenues of $117 million; Q1 2025 revenue guidance of $118-120 million, up ~23% YoY MIGDAL HAEMEK, Israel, Feb. 12, 2025 /PRNewswire/ -- Camtek Ltd. CAMT CAMT, today announced its financial results for the fourth quarter and year ended December 31, 2024. 2024 Fourth Quarter Financial Highlights Record revenues of $117.3 million, a 32% YoY increase;GAAP operating income of $31.3 million (up 82% YoY) and non-GAAP operating income of $36.3 million (up 42% YoY), representing operating margins of 26.7% and 30.9%, respectively; andGAAP net income of $33.0 million (up 59% YoY) and non-GAAP net income of $37.7 million (up 34% YoY); GAAP diluted EPS of $0.67 and non-GAAP diluted EPS of $0.77. 2024 Full-Year Financial Highlights Record revenues of $429.2 million, a 36% YoY increase.GAAP operating income of $108.1 million (up 65% YoY); non-GAAP operating income of $130.3 million (up 56% YoY), representing operating margins of 25.2% and 30.4%, respectively;GAAP net income of $118.5 million (up 51% YoY); non-GAAP net income of $138.6 million (up 45% YoY); GAAP diluted EPS of $2.42 and non-GAAP diluted EPS of $2.83; andOperating cash flow of $122.2 million in 2024, which led to a year-end total cash, short-term and long-term deposits and marketable securities balance of $501.2 million. Forward-Looking Expectations Management expects continued growth in 2025 with revenues in the first quarter of 2025 in the range of $118-120 million, representing approximately a 23% increase over first quarter of 2024 revenues. Management Comment Rafi Amit, Camtek's CEO commented, "2024 was a year of a strong growth in revenue and even higher growth in profit. Looking ahead, Camtek ended 2024 with a record quarter and a strong backlog which indicates continued growth into 2025. As we enter 2025, we are excited to launch the technologically innovative Eagle G5 and Hawk systems that broaden our portfolio, enhance our competitiveness, and enable us to enter new markets." Continued Mr. Amit, "The growing demand for AI has positioned Camtek as a leader and facilitated our significant growth in 2024. We believe we will continue to capitalize on the increasing need for AI applications, which necessitate considerable investments in high-performance computing (HPC) hardware. We will further benefit as AI becomes integrated into mainstream devices like automobiles, robotics, PCs, and mobile phones." Fourth Quarter 2024 Financial Results Revenues for the fourth quarter of 2024 were $117.3 million. This compares to fourth quarter 2023 revenues of $88.7 million, representing a year-over-year growth of 32%. Gross profit on a GAAP basis in the quarter totaled $58.1 million (49.6% of revenues), an increase of 46% compared to a gross profit of $39.8 million (44.9% of revenues) in the fourth quarter of 2023. Gross profit on a non-GAAP basis in the quarter totaled $59.3 million (50.6% of revenues), an increase of 36% compared to a gross profit of $43.7 million (49.2% of revenues) in the fourth quarter of 2023. Operating income on a GAAP basis in the quarter totaled $31.3 million (26.7% of revenues), an increase of 82% compared to an operating income of $17.2 million (19.4% of revenues) in the fourth quarter of 2023. Operating income on a non-GAAP basis in the quarter totaled $36.3 million (30.9% of revenues), an increase of 42% compared to $25.5 million (28.7% of revenues) in the fourth quarter of 2023. Net income on a GAAP basis in the quarter totaled $33.0 million, or $0.67 per diluted share, an increase of 59% compared to net income of $20.8 million, or $0.42 per diluted share, in the fourth quarter of 2023. Net income on a non-GAAP basis in the quarter totaled $37.7 million, or $0.77 per diluted share, an increase of 34% compared to a non-GAAP net income of $28.2 million, or $0.57 per diluted share, in the fourth quarter of 2023. Full Year 2024 Results Summary Revenues for 2024 were $429.2 million, a 36% increase compared to the $315.4 million as reported in 2023. Gross profit on a GAAP basis totaled $209.9 million (48.9% of revenues), a 42% increase compared to $147.6 million (46.8% of revenues) in 2023. Gross profit on a non-GAAP basis totaled $218.0 million (50.8% of revenues), a 43% increase compared to $152.7 million (48.4% of revenues) in 2023. Operating income on a GAAP basis totaled $108.1 million (25.2% of revenues), a 65% increase compared to operating income of $65.4 million (20.7% of revenues) in 2023. Operating income on a non-GAAP basis totaled $130.3 million (30.4% of revenues), a 56% increase compared to $83.3 million (26.4% of revenues) in 2023. Net income on a GAAP basis totaled $118.5 million, or $2.42 per diluted share. This is an increase of 51% compared to net income of $78.6 million, or $1.61 per diluted share, in 2023. Net income on a non-GAAP basis totaled $138.6 million, or $2.83 per diluted share. This is an increase of 45% compared to net income of $95.7 million, or $1.96 per diluted share, in 2023. Cash and cash equivalents, short-term and long-term deposits, and marketable securities, as of December 31, 2024, were $501.2 million compared to $448.6 million as of December 31, 2023, and $488.7 million as of September 30, 2024. During the fourth quarter, the Company generated an operating cash flow of $16.2 million. Conference Call Camtek will host a video conference call/webinar today via Zoom, on Wednesday, February 12, 2025, at 09:00 ET (16:00 Israel time). Rafi Amit, CEO, Moshe Eisenberg, CFO, and Ramy Langer, COO will host the call and will be available to answer questions after presenting the results. To participate in the webinar, please register using the following link, which will provide access to the video call: https://us06web.zoom.us/webinar/register/WN_9cx6Ew0UQsucYsHDA_qMow For those wishing to listen via phone, following registration, the dial in link will be sent. For any problems in registering, please email Camtek's investor relations a few hours in advance of the call. For those unable to participate, a recording will be available on Camtek's website at http://www.camtek.com within a few hours after the call. A summary presentation of the quarterly results will also be available on Camtek's website. ABOUT CAMTEK LTD. Camtek is a developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry. Camtek's systems inspect IC and measure IC features on wafers throughout the production process of semiconductor devices, covering the front and mid-end and up to the beginning of assembly (Post Dicing). Camtek's systems inspect wafers for the most demanding semiconductor market segments, including Advanced Interconnect Packaging, Heterogenous Integration, Memory and HBM, CMOS Image Sensors, Compound Semiconductors, MEMS, and RF, serving numerous industry's leading global IDMs, OSATs, and foundries. With manufacturing facilities in Israel and Germany, and eight offices around the world, Camtek provides state of the art solutions in line with customers' requirements. This press release is available at http://www.camtek.com This press release contains statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on Camtek's current beliefs, expectations and assumptions about its business and industry, all of which may change. Forward-looking statements can be identified by the use of words including "believe," "anticipate," "should," "intend," "plan," "will," "may," "expect," "estimate," "project," "positioned," "strategy," and similar expressions that are intended to identify forward-looking statements, including statements relating to the compound semiconductors market and our position in this market and the anticipated timing of delivery of the systems. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Camtek to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause our actual results to differ materially from those contained in the forward-looking statements include, but are not limited to the effects of the evolving nature of the war situation in Israel, and the related evolving regional conflicts; the continued demand for HPC, HBM and Chiplet devices resulting from, among other things, the field of AI surging worldwide across companies, industries and nations; our dependency upon the semiconductor industry and the risk that unfavorable economic conditions or low capital expenditures may negatively impact our operating results; risks related to the Company's ability to effectively maneuver global trade issues and changes either in the U.S., Israel, or elsewhere in trade and export regulations, tariffs, and license policies, including formal or informal imposition by countries of new or revised export and/or import and doing-business regulations or sanctions, and further including changes in U.S. trade policies, changes or uncertainty related to the U.S. government entity list and changes in the ability to sell products incorporating U.S originated technology, which can be made without prior notice; the risks relating to the concentration of a significant portion of our business in certain countries in the Asia Pacific Region, particularly China, Taiwan and Korea, some of which might be subject to the trade restrictions referred to above or involved in trade wars with countries which might impose such trade restrictions; changing industry and market trends; and those other factors discussed in our Annual Report on Form 20-F as published on March 21, 2024, as well as other documents that may be subsequently filed by Camtek from time to time with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Camtek does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law. While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Camtek's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Camtek does not assume any obligation to update any forward-looking statements unless required by law. This press release provides financial measures that exclude: (i) share based compensation expenses; and (ii) acquisition related expenses and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it is important to make these non-GAAP adjustments available to investors. A reconciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release. The results reported in this press-release are preliminary unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors. CAMTEK LTD. and its subsidiaries Consolidated Balance Sheets (In thousands) December 31, December 31, 2024 2023 U.S. Dollars Assets Current assets Cash and cash equivalents 126,224 119,968 Short-term deposits 231,000 215,250 Marketable securities 30,813 18,816 Trade accounts receivable, net 99,471 87,300 Inventories 111,204 85,905 Other current assets 21,347 19,548 Total current assets 620,059 546,787 Long-term deposits 26,000 21,000 Marketable securities 87,115 73,576 Long-term inventory 11,879 9,023 Deferred tax asset, net 3,090 2,642 Other assets, net 2,001 1,370 Property, plant and equipment, net 54,196 41,987 Intangible assets, net 13,357 16,937 Goodwill 74,345 74,345 Total non- current assets 271,983 240,880 Total assets 892,042 787,667 Liabilities and shareholders' equity Current liabilities Trade accounts payable 46,630 42,187 Other current liabilities 77,280 54,487 Total current liabilities 123,910 96,674 Long-term liabilities Deferred tax liabilities, net 5,606 7,541 Other long-term liabilities 15,366 10,473 Convertible notes 197,925 196,831 Total long-term liabilities 218,897 214,845 Total liabilities 342,807 311,519 Commitments and contingencies Shareholders' equity Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at December 31, 2024 and at December 31, 2023; 47,541,682 issued shares at December 31, 2024 and 46,993,998 at December 31, 2023; 45,449,306 shares outstanding at December 31, 2024 and 44,901,622 at December 31, 2023 177 176 Additional paid-in capital 214,931 200,389 Accumulated other comprehensive income 203 129 Retained earnings 335,822 277,352 551,133 478,046 Treasury stock, at cost (2,092,376 as of December 31, 2024 and December 31, 2023) (1,898) (1,898) Total shareholders' equity 549,235 476,148 Total liabilities and shareholders' equity 892,042 787,667 Camtek Ltd. Consolidated Statements of Income (in thousands, except share data) Year ended December 31, Three Months ended December 31, 2024 2023 2024 2023 U.S. dollars U.S. dollars Revenues 429,234 315,375 117,293 88,690 Cost of revenues 219,283 167,742 59,161 48,902 Gross profit 209,951 147,633 58,132 39,788 Research and development costs 38,287 31,470 10,371 8,042 Selling, general and administrative expense 63,595 50,751 16,461 14,527 101,882 82,221 26,832 22,569 Operating income 108,069 65,412 31,300 17,219 Financial income, net 23,169 22,218 6,175 5,682 Income before income taxes 131,238 87,630 37,475 22,901 Income taxes expense (12,723) (8,998) (4,466) (2,111) Net income 118,515 78,632 33,009 20,790 Net income per ordinary share: Year ended December 31, Three Months ended December 31, 2024 2023 2024 2023 U.S. dollars U.S. dollars Basic net earnings 2.62 1.76 0.73 0.46 Diluted net earnings 2.42 1.61 0.67 0.42 Weighted average number of ordinary shares outstanding: Basic 45,279 44,725 45,428 44,882 Diluted 49,369 48,863 49,503 49,149 Reconciliation of GAAP To Non-GAAP results (In thousands, except share data) Year ended December 31, Three Months ended December 31, 2024 2023 2024 2023 U.S. dollars U.S. dollars Reported net income attributable to Camtek Ltd. on GAAP basis 118,515 78,632 33,009 20,790 Acquisition of FRT related expenses (1) 5,334 4,550 650 4,550 Share-based compensation 14,775 12,525 4,052 2,868 Non-GAAP net income 138,624 95,707 37,711 28,208 Non-GAAP net income per diluted share 2.83 1.96 0.77 0.57 Gross margin on GAAP basis Reported gross profit on GAAP basis 49.6% 209,951 46.8% 147,633 50.6% 58,132 44.9% 39,788 Acquisition of FRT-related expenses (1) 5,802 3,492 610 3,492 Share-based compensation 2,197 1,591 595 395 Non-GAAP gross margin 50.8 % 48.4 % 50.6 % 49.2 % Non-GAAP gross profit 217,950 152,716 59,337 43,675 Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis 108,069 65,412 31,300 17,219 Acquisition of FRT-related expenses (1) 7,455 5,406 928 5,406 Share-based compensation 14,775 12,525 4,052 2,868 Non-GAAP operating income 130,299 83,343 36,280 25,493 (1) During the year ended December 31, 2024, the Company recorded acquisition-related expenses of $5.3 million, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $3.4 million. This amount is recorded under cost of revenues line item. (2) $2.4 million amortization of intangible assets acquired recorded under cost of revenues line item. (3) $1.3 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (4) $0.4 million re-organization expenses, recorded under the general and administrative expenses line item. (5) $2.1 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item. During the three-month period ended December 31, 2024, the Company recorded acquisition-related expenses of $0.6 million, consisting of: (1) $0.6 million amortization of intangible assets acquired recorded under cost of revenues line item. (2) $0.3 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (3) $0.3 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item. During the year and three-month period ended December 31, 2023, the Company recorded acquisition expenses of $4.5 million, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $2.2 million. This amount was recorded under cost of revenues line item. (2) $0.4 million amortization of intangible assets acquired recorded under cost of revenues line item. (3) Inventory write-off of $0.9 million recorded under costs of revenues line item. (4) $0.2 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (5) Acquisition expenses of $1.7 million recorded under general and administrative expenses line item. (6) $0.9 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item. CAMTEK LTD. INTERNATIONAL INVESTOR RELATIONS Moshe Eisenberg, CFO EK Global Investor Relations Tel: +972 4 604 8308 Ehud Helft Mobile: +972 54 900 7100 Tel: (US) 1 212 378 8040 moshee@camtek.com camtek@ekgir.com Logo: https://mma.prnewswire.com/media/1534463/Camtek_logo.jpg View original content:https://www.prnewswire.com/news-releases/camtek-announces-record-results-for-the-fourth-quarter--full-year-of-2024-302374668.html SOURCE Camtek Ltd. CAMTCamtek Ltd $91.444.62% Overview Rating: Speculative 50% Technicals Analysis 66 0100 Financials Analysis 40 0100 Watchlist Overview Market News and Data brought to you by Benzinga APIs

RADCOM Reports Record-Breaking Year with Highest-Ever Revenues and Accelerated Profit Growth - Radcom (NASDAQ:RDCM)

Poised to Achieve its Sixth Consecutive Year of Revenue Growth Key 2024 Highlights Record revenue of $61M, with over 18.2% year over year increase and a 5th consecutive year of revenue growth Accelerated earnings of $0.43 per diluted share (GAAP) and $0.83 per diluted share (Non-GAAP)$12.5M positive cash flow, closing the year with a record-high $94.7M in cash and short-term bank depositsSecured a new customer: Norlys (Telia Denmark)Strong visibility into 2025, targeting double-digit revenue growth of 12% to 15% year over year TEL AVIV, Israel, Feb. 12, 2025 /PRNewswire/ -- RADCOM Ltd. RDCM announced today strong financial results and accelerated profitability for the fourth quarter and full year ended December 31, 2024. Management Comments: "2024 was a record-breaking year for RADCOM, driven by exceptional team execution and remarkable achievements. We exceeded the midpoint of our full-year revenue guidance, marking our fifth consecutive year of growth while significantly enhancing profitability. Earnings per share surged by over 75% on a GAAP basis, and we achieved the highest cash and short-term deposits balances in the company's history -- $94.7 million -- all while remaining completely debt-free," said Benny Eppstein, Chief Executive Officer of RADCOM. Our record-breaking performance highlights the power of our cloud and Gen AI-based assurance solution that telecom operators need to improve efficiency and deliver exceptional customer experiences. We remain laser-focused on innovation, AI, and automation, continuously investing in research and development (R&D) to reinforce our leadership in 5G assurance, expand our solution portfolio, and support operators as they transition to next-generation networks. As announced a month ago, following a thorough selection process, we have secured a multi-year contract with Norlys, the owner of Telia Denmark. This win underscores RADCOM's leadership in AI-driven assurance solutions and highlights the success of our strategic investment in European sales and marketing. We have further solidified our reputation as a trusted industry leader by replacing the incumbent assurance vendor. Looking ahead to 2025, I am excited to lead RADCOM and believe that the best is yet to come. We are establishing strategic partnerships with service management system vendors and other industry leaders in advanced network technologies to enhance our solutions and expand market opportunities. With strong visibility, RADCOM is well positioned to achieve its sixth consecutive year of revenue growth." Mr. Eppstein concluded, "We anticipate full-year 2025 revenue growth of 12% to 15%, with a midpoint of $69.2 million -- representing a 13.5% increase compared to 2024." Full Year 2024 Financial Highlights: Total revenues for the full year were $61 million, a new company record, compared to $51.6 million for 2023.GAAP net income for the full year was $7 million, or $0.43 per diluted share, compared to a GAAP net income of $3.7 million, or $0.24 per diluted share, for 2023.Non-GAAP net income for the full year amounted to $13.5 million, or $0.83 per diluted share, compared to a non-GAAP net income of $10.2 million, or $0.67 per diluted share for the full year 2023. Fourth Quarter 2024 Financial Highlights: Total revenues for the fourth quarter were $16.3 million, compared to $14.0 million in the fourth quarter of 2023, 16.1% year-over-year growth.GAAP net income for the fourth quarter was $2.2 million, or $0.14 per diluted share, compared to a GAAP net income of $2.6 million, or $0.17 per diluted share, for the fourth quarter of 2023. The decrease was mainly attributed to lower interest income due to decreased interest rates.Non-GAAP net income for the period was $3.8 million, or $0.23 per diluted share, compared to a non-GAAP net income of $3.8 million, or $0.25 per diluted share, for the fourth quarter of 2023.As of December 31, 2024, the company had cash and cash equivalents, short-term bank deposits of $94.7 million, and no debt, ending the year with its highest cash levels. Earnings Conference Call As mentioned in our last press release, our conference call originally scheduled for February 12, 2025, has been rescheduled to Thursday, February 20, at 8:00 AM Eastern Time (3:00 PM Israel Standard Time). RADCOM management will discuss the results and address participants' questions. A live webcast of the presentation will be available at https://Veidan.activetrail.biz/radcomq4-2024. The webcast will be archived for 90 days following the live presentation. To join the interactive call, please call one of the following numbers approximately five minutes before the call is scheduled to begin: From the US (toll-free): +1-866-652-8972 From other locations: +972-3-9180644 A conference call replay will be available the same day on the Company's investor relations website, www.radcom.com/investor-relations. For all investor inquiries, please contact: Investor Relations: Miri Segal MS-IR LLC msegal@ms-ir.com Company Contact: Hadar Rahav CFO +972-77-7745062 hadar.rahav@radcom.com About RADCOM RADCOM RDCM is the leading expert in 5G-ready cloud-native, network intelligence solutions for telecom operators transitioning to 5G. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. The RADCOM Network Intelligence suite offers intelligent, container-based, on-demand solutions to deliver network analysis from the RAN to the core for 5G assurance. Utilizing automated and dynamic solutions with smart minimal data collection and on-demand troubleshooting, and cutting-edge techniques based on machine learning, these solutions work in harmony to provide operators with an understanding of the entire customer experience and allow them to troubleshoot network performance from a high to granular level while reducing storage costs and cloud resource utilization. For more information on how to RADCOMize your network today, please visit www.radcom.com, the content of which does not form a part of this press release. Non-GAAP Information Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial (income) expenses, acquisition-related expenses, and amortization of intangible assets related to acquisitions, the Company's non-GAAP results provide information to both management and investors that is useful in assessing the Company's core operating performance and in evaluating and comparing the Company's results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP. Risks Regarding Forward-Looking Statements Certain statements made herein that use words such as "estimate," "project," "intend," "expect," "'believe," "may," "might," " potential," "anticipate," "plan" or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its full-year 2025 revenue guidance and growth, its cloud and Gen AI-based solutions and their suitability for network operators needs, its investment in R&D generally and in order to enhance its leadership in 5G assurance, its leadership in AI-driven assurance solutions, its belief that 'the best is yet to come' and its expectation that its strategic partnerships with service management systems vendors and other industry leaders will enhance its solutions and expand market opportunities, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products, and applications, loss of market share and pressure on prices resulting from competition and the effects of the war in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason. RADCOM Ltd. Consolidated Statements of Operations Unaudited (thousands of U.S. dollars, except share and per share data) Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023 Revenues $ 16,264 $ 14,010 $ 61,009 $ 51,600 Cost of revenues 4,137 3,435 15,746 13,773 Gross profit 12,127 10,575 45,263 37,827 Research and development, gross 4,749 4,327 18,659 19,575 Less - royalty-bearing participation 113 190 684 736 Research and development, net 4,636 4,137 17,975 18,839 Sales and marketing 4,632 3,720 17,794 14,592 General and administrative 1,549 1,297 6,407 5,058 Total operating expenses 10,817 9,154 42,176 38,489 Operating income (loss) 1,310 1,421 3,087 (662) Financial income, net 1,080 1,248 4,115 4,557 Income before taxes on income 2,390 2,669 7,202 3,895 Taxes on income 142 77 234 182 Net income $ 2,248 $ 2,592 $ 6,968 $ 3,713 Basic net income per ordinary share $ 0.14 $ 0.17 $ 0.44 $ 0.25 Diluted net income per ordinary share $ 0.14 $ 0.17 $ 0.43 $ 0.24 15,878,186 15,291,917 15,666,457 15,098,642 Weighted average number of ordinary shares used in computing basic net income per ordinary share Weighted average number of 16,612,554 15,446,177 16,155,150 15,297,947 ordinary shares used in computing diluted net income per ordinary share RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of U.S. dollars, except share and per share data) Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023 GAAP gross profit $ 12,127 $ 10,575 $ 45,263 $ 37,827 Stock-based compensation 91 71 381 441 Amortization of intangible assets 57 57 225 151 Non-GAAP gross profit $ 12,275 $ 10,703 $ 45,869 $ 38,419 $ 4,636 $ 4,137 $ 17,975 $ 18,839 GAAP research and development, net Stock-based compensation 497 424 2,047 2,690 Non-GAAP research and development, net $ 4,139 $ 3,713 $ 15,928 $ 16,149 $ 4,632 $ 3,720 $ 17,794 $ 14,592 GAAP sales and marketing Stock-based compensation 506 370 2,023 1,820 Amortization of intangible assets 29 29 116 77 Non-GAAP sales and marketing $ 4,097 $ 3,321 $ 15,655 $ 12,695 $ 1,549 $ 1,297 $ 6,407 $ 5,058 GAAP general and administrative Stock-based compensation 380 319 1,645 1,168 Acquisition related expenses - - - 56 Non-GAAP general and administrative $ 1,169 $ 978 $ 4,762 $ 3,834 $ 10,817 $ 9,154 $ 42,176 $ 38,489 GAAP total operating expenses Stock-based compensation 1,383 1,113 5,715 5,678 Amortization of intangible assets 29 29 116 77 Acquisition related expenses - - - 56 Non-GAAP total operating expenses $ 9,405 $ 8,012 $ 36,345 $ 32,678 $ 1,310 $ 1,421 $ 3,087 $ (662) GAAP operating income (loss) Stock-based compensation 1,474 1,184 6,096 6,119 Amortization of intangible assets 86 86 341 228 Acquisition related expenses - - - 56 Non-GAAP operating income $ 2,870 $ 2,691 $ 9,524 $ 5,741 RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of U.S. dollars, except share and per share data) Three months ended December 31, Twelve months ended December 31, 2024 2023 2024 2023 GAAP income before taxes on income $ 2,390 $ 2,669 $ 7,202 $ 3,895 Stock-based compensation 1,474 1,184 6,096 6,119 Amortization of intangible assets 86 86 341 228 Acquisition related expenses - - - 56 Financial (income) expenses (28) (15) 84 60 Non-GAAP income before taxes on income $ 3,922 $ 3,924 $ 13,723 $ 10,358 GAAP net income $ 2,248 $ 2,592 $ 6,968 $ 3,713 Stock-based compensation 1,474 1,184 6,096 6,119 Amortization of intangible assets 86 86 341 228 Acquisition related expenses - - - 56 Financial (income) expenses (28) (15) 84 60 Non-GAAP net income $ 3,780 $ 3,847 $ 13,489 $ 10,176 GAAP net income per diluted share $ 0.14 $ 0.17 $ 0.43 $ 0.24 Stock-based compensation 0.09 0.08 0.38 0.43 Amortization of intangible assets (*) (*) 0.02 (*) Acquisition related expenses (*) (*) (*) (*) Financial (income) expenses (*) (*) (*) (*) Non-GAAP net income per diluted share $ 0.23 $ 0.25 $ 0.83 $ 0.67 Weighted average number of shares used to compute diluted net income per share 16,612,554 15,446,177 16,155,150 15,297,947 (*) Less than $ 0.01 RADCOM Ltd. Consolidated Balance Sheets (thousands of U.S. dollars) (Unaudited) As of As of December 31, 2024 December 31, 2023 Current Assets Cash and cash equivalents $ 19,243 $ 10,892 Short-term bank deposits 75,429 71,273 Trade receivables, net 19,038 13,412 Inventories 1,667 246 Other accounts receivable and prepaid expenses 1,819 1,592 Total Current Assets 117,196 97,415 Non-Current Assets Severance pay fund 2,985 3,142 Other long-term receivables 3,484 1,573 Property and equipment, net 879 798 Operating lease right-of-use assets 3,421 1,651 Goodwill and intangible assets, net 2,609 2,950 Total Non-Current Assets 13,378 10,114 Total Assets $ 130,574 $ 107,529 Liabilities and Shareholders' Equity Current Liabilities Trade payables $ 2,457 $ 2,640 Deferred revenues and advances from customers 6,848 1,469 Employee and payroll accruals 7,175 5,400 Operating lease liabilities 966 1,062 Other liabilities and accrued expenses 10,463 9,540 Total Current Liabilities 27,909 20,111 Non-Current Liabilities Accrued severance pay 3,868 3,728 Operating lease liabilities 2,438 561 Other liabilities and accrued expenses 683 638 Total Non-Current Liabilities 6,989 4,927 Total Liabilities $ 34,898 $ 25,038 Shareholders' Equity Share capital $ 769 $ 736 Additional paid-in capital 160,761 154,697 Accumulated other comprehensive loss (2,910) (3,030) Accumulated deficit (62,944) (69,912) Total Shareholders' Equity 95,676 82,491 Total Liabilities and Shareholders' Equity $ 130,574 $ 107,529 View original content:https://www.prnewswire.com/news-releases/radcom-reports-record-breaking-year-with-highest-ever-revenues-and-accelerated-profit-growth-302374704.html SOURCE RADCOM Ltd. RDCMRadcom Ltd $15.757.00% Overview Rating: Speculative 50% Technicals Analysis 100 0100 Financials Analysis 20 0100 Watchlist Overview Market News and Data brought to you by Benzinga APIs