Market Newsdesk

April 2, 2025 4:13 pm

Cyclacel Pharmaceuticals Reports Fourth Quarter Financial Results and Provides Business Update

BERKELEY HEIGHTS, N.J., April 02, 2025 (GLOBE NEWSWIRE) — Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; “Cyclacel” or the “Company”), a biopharmaceutical company developing innovative medicines, today announced fourth quarter financial results and provided a business update.

“As part of Cyclacel’s efforts to reduce operating costs, it has determined to focus on the development of plogosertib, a polo-like kinase 1 (PLK 1) inhibitor for treatment of advanced cancers and hematological malignancies, which we acquired on March 10, 2025, from Cyclacel Limited, our wholly-owned subsidiary that is currently in liquidation,” said Datuk Dr. Doris Wong Sing Ee, Chief Executive Officer and Executive Director. “Our new, alternative salt, oral formulation of plogosertib with improved bioavailability is under development.”

“The commencement of the liquidation of Cyclacel Limited means that the Company will no longer have control over Cyclacel Limited and its financial results will be deconsolidated from those of the Company; as a result, the Company anticipates a significant decrease to research and development expenses for the year ended December 31, 2025 as we focus on our plogosertib clinical program and have no expenditures related to fadraciclib,” said Kiu Cu Seng, Chief Financial Officer. “The deconsolidation of Cyclacel Limited, which is anticipated to increase stockholders’ equity by approximately $5.0 million, will be reported in the Company’s Form 10-Q for the three months ended March 31, 2025.”

Financial Highlights

As of December 31, 2024, pro forma cash and cash equivalents totaled $7.2 million, including $4.1 million of equity financing received after the end of the year. Cash and cash equivalents as of December 31, 2024, totaled $3.1 million, compared to $3.4 million as of December 31, 2023. Net cash used in operating activities was $8.0 million for the twelve months ended December 31, 2024 compared to $16.1 million for the same period of 2023. The Company estimates that its available cash, including the equity financing of $4.1 million, will fund currently planned activities into the second quarter of 2025.

Research and development (R&D) expenses were $0.9 million and $6.7 million for the three months and year ended December 31, 2024, as compared to $3.5 million and $19.2 million for the same period in 2023. R&D expenses relating to fadraciclib were $0.8 million and $5.0 million for the three months and year ended December 31, 2024, as compared to $2.7 million and $13.4 million for the same period in 2023 due to decrease in clinical trial and other non-clinical expenditures. R&D expenses related to plogosertib were $0.1 million and $1.6 million for the three months and year ended December 31, 2024, as compared to $0.7 million and $5.0 million for the same period in 2023 due to decrease in clinical trial and other non-clinical expenditures.

General and administrative expenses for the three months and year ended December 31, 2024, were $0.9 million and $5.4 million, compared to $1.9 million and $6.7 million for the same period of the previous year due to a decrease in stock compensation and professional and corporate fees.

Total other income, net, for the three months and year ended December 31, 2024, were an expense of $30,000 and income of $10,000, compared to an expense of $333,000 and $98,000 for the same period of the previous year, due to foreign exchange movements.

United Kingdom research & development tax credits for the three months and year ended December 31, 2024 were a debit of $1.2 million and a credit of 0.8 million compared to credits $0.4 million and $3.0 million for the same period of the previous year and are directly correlated to qualifying research and development expenditure.

Net loss for the three months and year ended December 31, 2024, was $3.0 million and $11.2 million (including stock based compensation expense of $0.1 million and $0.6 million respectively), compared to $5.3 million and $22.6 million (including stock based compensation expense of $0.3 million and $1.5 million respectively) for the same period in 2023.

Board and Committee Appointments

On April 2, 2025, coinciding with the effective time of the previously announced resignations of Avraham Ben-Tzvi and David Natan, as independent directors, the Company appointed Ms. Inigo Angel Laurduraj and Dr. Satis Waran Nair Krishnan, as independent directors, on the Company’s board of directors (the “Board”) to fill the vacancies.

Dr. Satis Waran Nair Krishnan (age 39) is a Medical Doctor at Centric Health in Drogheda, County Louth, Ireland. Dr. Krishnan is a highly experienced practitioner originally from Malaysia. Dr. Krishnan joined Centric Health in Ireland September 2023. Prior to that, from 2010 to August 2023, Dr. Krishnan was a Doctor in the public health field for the Ministry of Health Malaysia, With a decade of practice in Malaysia and training in Dermatology from the Association of Family Physicians of Malaysia (AFPM) and the Institute of Dermatology in Bangkok, Thailand, Dr. Krishnan brings a wealth of expertise to our team. Dr. Nair is proficient in English, Russian and Ukrainian, he is dedicated to providing patient-centered care and promoting overall well-being. Dr. Krishnan received his medical degree in 2010 and Professional Diploma of General Dermatology in 2023.

Inigo Angel Laurduraj (age 40) brings extensive audit and accounting services to the Company over her 20 years in that industry. Ms. Laurduraj served as a Senior Accounting Manager at IOI Oleochemicals Sdn. Bhd., an edible oil refining and Oleochemicals company for 11 years from 2007 through 2018. Prior to that, she served from 2005 through 2005 as an Auditor for Moore Stephens (now Moore Global), a global firm operating in 114 countries specializing in accounting and finance services, audit and assurance, fund services, private client services, corporate services, and tax services. Ms. Laurduraj earned an Association of Chartered Certified Accountants (ACCA) in 2015 and a Bachelors of Arts in Accounting in 2014.

In connection with Ms. Laurduraj and Dr. Krishnan’s appointment, as well as the Board’s recent appointment of Mr. Kwang Fock Chong as independent director, on April 2, 2025, the Board also approved the following committee appointments:

Audit Committee — Kwang Fock Chong (Chair); Inigo Angel Laurduraj; and Dr. Satis Waran Nair Krishnan
Compensation Committee — Inigo Angel Laurduraj (Chair); Kwang Fock Chong; and Dr. Satis Waran Nair Krishnan
Governance Committee — Dr. Satis Waran Nair Krishnan (Chair), Kwang Fock Chong and Inigo Angel Laurduraj

The Company wishes to express its gratitude to the departing directors for their dedicated service and their support of Cyclacel’s eﬀorts to serve the unmet medical needs of cancer patients.

About Cyclacel Pharmaceuticals, Inc.

Cyclacel is a clinical-stage, biopharmaceutical company developing innovative cancer medicines based on cell cycle, epigenetics and mitosis biology. The epigenetic/anti-mitotic program is evaluating plogosertib, a PLK1 inhibitor, in patients with both solid tumors and hematological malignancies. Cyclacel’s strategy is to build a diversified biopharmaceutical business based on a pipeline of novel drug candidates addressing oncology and hematology indications. For additional information, please visit www.cyclacel.com.

Forward-looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, Cyclacel’s future plans and prospects, Cyclacel’s anticipated cash runway and the planned timing of data results and continued development of plogosertib. Factors that may cause actual results to differ materially include market and other conditions, the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, trials may have difficulty enrolling, Cyclacel may not obtain approval to market its product candidates, the risks associated with reliance on outside financing to meet capital requirements, the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates and Cyclacel’s ability to regain and maintain compliance with Nasdaq’s continued listing requirements, although no assurance to that effect can be given. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic and other filings we file with the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Cyclacel Pharmaceuticals, Inc.
Datuk Dr. Doris Wong Sing Ee
Chief Executive Officer
Tel: (908) 517-7330
Email: [email protected]

SOURCE:
Cyclacel Pharmaceuticals, Inc.

CYCLACEL PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (LOSS)
(In $000s, except share and per share amounts)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2024			2023			2024			2023

Revenues:
Collaboration and research and development revenue		–			31			43			420
Revenues	$	–		$	31		$	43		$	420

Operating expenses:
Research and development		880			3,519			6,655			19,155
General and administrative		946			1,873			5,392			6,718
Total operating expenses		1,826			5,392			12,047			25,873
Operating loss		(1,826	)		(5,361	)		(12,004	)		(25,453	)
Other income (expense):
Foreign exchange gains (losses)		(60	)		(355	)		(54	)		(414	)
Interest income		30			23			12			266
Other income, net		–			(1	)		52			50
Total other income (expense), net		(30	)		(333	)		10			(98	)
Loss before taxes		(1,856	)		(5,694	)		(11,994	)		(25,551	)
Income tax benefit		(1,194	)		422			782			2,996
Net loss		(3,050	)		(5,272	)		(11,212	)		(22,555	)
Dividend on convertible exchangeable preferred shares		–			(50	)		–			(201	)
Net loss applicable to common shareholders	$	(3,050	)	$	(5,322	)	$	(11,212	)	$	(22,756	)
Basic and diluted earnings per common share:
Net loss per share – basic and diluted (common shareholders)	$	(0.33	)	$	(6.16	)	$	(2.09	)	$	(26.75	)

CYCLACEL PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEET
(In $000s, except share, per share, and liquidation preference amounts)

	December 31,			December 31,
	2024			2023

ASSETS
Current assets:
Cash and cash equivalents	$	3,137		$	3,378
Prepaid expenses and other current assets		537			4,066
Total current assets		3,674			7,444

Property and equipment, net		3			9
Right-of-use lease asset		5			93
Non-current deposits		412			1,259
Total assets	$	4,094		$	8,805

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,599		$	3,543
Accrued and other current liabilities		1,669			4,618
Total current liabilities		6,268			8,161
Lease liability		–			37
Total liabilities		6,268			8,198

Stockholders’ equity		(2,174	)		607
Total liabilities and stockholders’ equity	$	4,094		$	8,805

April 2, 2025 4:13 pm

Penguin Solutions Reports Q2 Fiscal 2025 Financial Results

Penguin Solutions Reports Q2 Fiscal 2025 Financial Results

Revenue up 28% compared with year-ago quarter

Company raises midpoint of annual revenue outlook

MILPITAS, Calif.–(BUSINESS WIRE)–
Penguin Solutions, Inc. (“Penguin Solutions,” “we,” “us,” or the “Company”) (NASDAQ: PENG) today reported financial results for the second quarter of fiscal 2025 and announced the planned retirement of Chief Operating Officer (“COO”) and President of Integrated Memory Jack Pacheco.

Second Quarter Fiscal 2025 Highlights

Net sales of $366 million, up 28.3% versus the year-ago quarter
GAAP gross margin of 28.6%, down 20 basis points versus the year-ago quarter
Non-GAAP gross margin of 30.8%, down 70 basis points versus the year-ago quarter
GAAP diluted EPS of $0.09 versus $(0.26) in the year-ago quarter
Non-GAAP diluted EPS of $0.52 versus $0.27 in the year-ago quarter

“We are pleased with the progress we are making in fiscal year 2025,” said Mark Adams, Chief Executive Officer (“CEO”) of Penguin Solutions. “Our results reinforce our capabilities in managing the complexity of AI for our valued customers. Given our strong start to the fiscal year, we are raising the midpoint of our revenue outlook for the full year.”

Quarterly Financial Results

	GAAP ⁽¹⁾							Non-GAAP ⁽²⁾
(in thousands, except per share amounts)	Q2-25		Q1-25		Q2-24			Q2-25		Q1-25		Q2-24
Net sales:
Advanced Computing	$	200,157	$	177,426	$	141,405		$	200,157	$	177,426	$	141,405
Integrated Memory		105,260		96,706		83,297			105,260		96,706		83,297
Optimized LED		60,102		66,970		60,119			60,102		66,970		60,119
Total net sales	$	365,519	$	341,102	$	284,821		$	365,519	$	341,102	$	284,821

Gross profit	$	104,648	$	97,812	$	81,934		$	112,408	$	105,122	$	89,735
Operating income (loss)		18,488		17,356		(3,312	)		49,090		40,918		26,514
Net income (loss) attributable to Penguin Solutions		8,082		5,217		(13,620	)		33,836		26,518		14,141
Diluted earnings (loss) per share	$	0.09	$	0.10	$	(0.26	)	$	0.52	$	0.49	$	0.27

(1)		GAAP represents U.S. Generally Accepted Accounting Principles.
(2)		Non-GAAP represents GAAP excluding the impact of certain activities. Further information regarding the Company’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.

Business Outlook

As of April 2, 2025, Penguin Solutions is providing the following financial outlook for fiscal year 2025:

New Outlook	GAAP Outlook	Adjustments		Non-GAAP Outlook
Net sales	17% YoY Growth +/- 3%	—		17% YoY Growth +/- 3%
Gross margin	29% +/- 1%	2%	(A)	31% +/- 1%
Operating expenses	$336 million +/- $5 million	($71) million	(B)(C)(D)	$265 million +/- $5 million
Diluted earnings per share	$-0.02 +/- $0.10	$1.62	(A)(B)(C)(D)(E)	$1.60 +/- $0.10
Diluted shares	54 million	1 million		55 million

Non-GAAP adjustments (in millions)
(A) Share-based compensation and amortization of acquisition-related intangibles included in cost of sales	$	31
(B) Share-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A		48
(C) Goodwill impairment		16
(D) Other adjustments		7
(E) Estimated income tax effects		(13	)
	$	89

Prior Outlook	GAAP Outlook	Adjustments		Non-GAAP Outlook
Net sales	15% YoY Growth +/- 5%	—		15% YoY Growth +/- 5%
Gross margin	30% +/- 1%	2%	(A)	32% +/- 1%
Operating expenses	$335 million +/- $15 million	($60) million	(B)(C)	$275 million +/- $15 million
Diluted earnings per share	$0.10 +/- $0.20	$1.40	(A)(B)(C)(D)	$1.50 +/- $0.20
Diluted shares	56.3 million	—		56.3 million

Non-GAAP adjustments (in millions)
(A) Share-based compensation and amortization of acquisition-related intangibles included in cost of sales	$	31
(B) Share-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A		48
(C) Other adjustments		12
(D) Estimated income tax effects		(12	)
	$	79

Second Quarter Fiscal 2025 Earnings Conference Call and Webcast Details

Penguin Solutions will hold a conference call and webcast to discuss the second quarter of fiscal 2025 results and related matters today, April 2, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Interested parties may access the call by dialing +1-833-470-1428 in the United States or +1-404-975-4839 from international locations, using the access code 858614. The earnings presentation and a live webcast of the conference call can be accessed from the Company’s investor relations website (https://ir.penguinsolutions.com/investors/default.aspx) where they will remain available for approximately one year.

Jack Pacheco to Retire as Chief Operating Officer and President of Integrated Memory

Jack Pacheco, Executive Vice President (“EVP”), COO and President of Integrated Memory, is expected to retire from the Company on December 31, 2025. The Company has initiated a succession planning process. Mr. Pacheco is expected to transition into a special advisor role if his successor is appointed before his retirement, and to provide consulting services following his retirement to ensure continuity and a smooth transition of his responsibilities.

Mr. Pacheco first joined the Company in 1994 and has served in various leadership roles during his tenure. He remained with the Company from 1994 until 2001, and then returned in 2004 as Chief Financial Officer (“CFO”), a position he held until 2008. In 2011, Mr. Pacheco returned to the Company and served as Senior Vice President, COO and CFO until becoming EVP, COO and President of Integrated Memory in September 2020.

“On behalf of the entire company, I want to thank Jack for his nearly 25 years of leadership and dedication,” said Mark Adams, CEO of Penguin Solutions. “Jack played a key role in scaling our memory business and strengthening our global operations. We’re grateful for his many contributions and his support through this transition.”

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements concerning or regarding future events and the future financial and operating performance of Penguin Solutions; statements regarding the extent and timing of and expectations regarding Penguin Solutions’ future revenues and expenses; statements regarding Penguin Solutions’ strategic transformation and priorities; statements regarding long-term effective tax rates; statements regarding the business and financial outlook for fiscal year 2025 described under “Business Outlook” above; and statements regarding the expected retirement of Mr. Pacheco and related succession planning activities.

These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “could,” and other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of significant risks, uncertainties and other factors, many of which are outside of our control, including but not limited to: global business and economic conditions and growth trends in technology industries (including trends and markets related to artificial intelligence), our customer markets and various geographic regions; uncertainties in the geopolitical environment; the ability to manage our cost structure; disruptions in our operations or supply chain as a result of global pandemics or otherwise; changes in trade regulations or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including our proposed redomiciliation to the United States (which remains subject to shareholder and court approval), our rebranding and related strategy, any existing or potential collaborations and additional investments in new products and additional capacity; acquisitions of companies or technologies and the failure to successfully integrate and operate them or customers’ negative reactions to them; issues, delays or complications in integrating the operations of Stratus Technologies; failure to achieve the intended benefits of the sale of SMART Brazil and its business; limitations on or changes in the availability of supply of materials and components; fluctuations in material costs; the temporary or volatile nature of pricing trends in memory or elsewhere; deterioration in customer relationships; our dependence on a select number of customers and the timing and volume of customer orders; production or manufacturing difficulties; competitive factors; technological changes; difficulties with, or delays in, the introduction of new products; slowing or contraction of growth in the memory market, LED market or other markets in which we participate; changes to applicable tax regimes or rates; changes to the valuation allowance for our deferred tax assets, including any potential inability to realize these assets in the future; prices for the end products of our customers; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; the inability to maintain or expand government business; and the continuing availability of borrowings under term loans and revolving lines of credit and our ability to raise capital through debt or equity financings.

These and other risks, uncertainties and factors are described in greater detail under the sections titled “Risk Factors,” “Critical Accounting Estimates,” “Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Liquidity and Capital Resources” contained in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and our other filings with the U.S. Securities and Exchange Commission. In addition, such risks, uncertainties and factors as outlined above and in such filings do not constitute all risks, uncertainties and factors that could cause our actual results to be materially different from such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we do not undertake to update the forward-looking statements contained in this press release to reflect the impact of circumstances or events that may arise after the date that the forward-looking statements were made.

Statement Regarding Use of Non-GAAP Financial Measures

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP effective tax rate, non-GAAP net income, non-GAAP weighted-average shares outstanding, non-GAAP diluted earnings per share and adjusted EBITDA. Penguin Solutions’ management uses these non-GAAP measures to supplement Penguin Solutions’ financial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company’s past and future operating performance. These non-GAAP measures exclude certain items, such as share-based compensation expense; amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships and trademarks/trade names acquired in connection with business combinations); cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; restructuring charges; impairment of goodwill; changes in the fair value of contingent consideration; gains (losses) from changes in foreign currency exchange rates; amortization of debt issuance costs; gain (loss) on extinguishment or prepayment of debt; other infrequent or unusual items and related tax effects and other tax adjustments. While amortization of acquisition-related intangible assets is excluded, the revenues from acquired companies are reflected in the Company’s non-GAAP measures and these intangible assets contribute to revenue generation. Management believes the presentation of operating results that exclude certain items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses adjusted EBITDA, which represents GAAP net income (loss), adjusted for net interest expense; income tax provision (benefit); depreciation expense and amortization of intangible assets; share-based compensation expense; cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; impairment of goodwill; restructuring charges; loss on extinguishment of debt and other infrequent or unusual items.

In fiscal 2024, for our non-GAAP reporting, we began to utilize a long-term projected non-GAAP effective tax rate of 28%, which includes the tax impact of pre-tax non-GAAP adjustments and reflects currently available information as well as other factors and assumptions. While we expect to use this normalized non-GAAP effective tax rate through fiscal 2025, this long-term non-GAAP effective tax rate may be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Our GAAP effective tax rate can vary significantly from quarter to quarter based on a variety of factors, including, but not limited to, discrete items which are recorded in the period they occur, the tax effects of certain items of income or expense, significant changes in our geographic earnings mix or changes to our strategy or business operations. We are unable to predict the timing and amounts of these items, which could significantly impact our GAAP effective tax rate, and therefore we are unable to reconcile our forward-looking non-GAAP effective tax rate measure to our GAAP effective tax rate.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, as they exclude important information about Penguin Solutions’ financial results, as noted above. The presentation of these adjusted amounts varies from amounts presented in accordance with GAAP and therefore may not be comparable to amounts reported by other companies. In addition, adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Investors are encouraged to review the “Reconciliation of GAAP to Non-GAAP Measures” tables below.

About Penguin Solutions

The most exciting technological advancements are also the most challenging for companies to adopt. At Penguin Solutions, we support our customers in achieving their ambitions across our computing, memory, and LED lines of business. With our expert skills, experience, and partnerships, we turn our customers’ most complex challenges into compelling opportunities.

For more information, visit www.penguinsolutions.com.

Penguin Solutions, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)

	Three Months Ended								Six Months Ended
	February 28, 2025			November 29, 2024		March 1, 2024			February 28, 2025		March 1, 2024
Net sales:
Advanced Computing	$	200,157		$	177,426	$	141,405		$	377,583	$	260,229
Integrated Memory		105,260			96,706		83,297			201,966		168,965
Optimized LED		60,102			66,970		60,119			127,072		129,874
Total net sales		365,519			341,102		284,821			706,621		559,068
Cost of sales		260,871			243,290		202,887			504,161		394,284
Gross profit		104,648			97,812		81,934			202,460		164,784

Operating expenses:
Research and development		19,907			19,811		20,526			39,718		41,915
Selling, general and administrative		59,315			60,536		61,385			119,851		118,602
Impairment of goodwill		6,079			—		—			6,079		—
Other operating expense		859			109		3,335			968		6,274
Total operating expenses		86,160			80,456		85,246			166,616		166,791
Operating income (loss)		18,488			17,356		(3,312	)		35,844		(2,007	)

Non-operating (income) expense:
Interest expense, net		2,183			4,396		7,249			6,579		16,808
Other non-operating (income) expense		(209	)		636		248			427		(328	)
Total non-operating (income) expense		1,974			5,032		7,497			7,006		16,480
Income (loss) before taxes		16,514			12,324		(10,809	)		28,838		(18,487	)

Income tax provision		7,643			6,360		2,198			14,003		5,732
Net income (loss) from continuing operations		8,871			5,964		(13,007	)		14,835		(24,219	)
Net loss from discontinued operations		—			—		—			—		(8,148	)
Net income (loss)		8,871			5,964		(13,007	)		14,835		(32,367	)
Net income attributable to noncontrolling interest		789			747		613			1,536		1,174
Net income (loss) attributable to Penguin Solutions		8,082			5,217		(13,620	)		13,299		(33,541	)

Preferred share dividends		2,600			—		—			2,600		—
Income available for distribution		5,482			5,217		(13,620	)		10,699		(33,541	)
Income allocated to participating securities		482			—		—			492		—
Net income available to ordinary shareholders	$	5,000		$	5,217	$	(13,620	)	$	10,207	$	(33,541	)

Basic earnings (loss) per share:
Continuing operations	$	0.09		$	0.10	$	(0.26	)	$	0.19	$	(0.49	)
Discontinued operations		—			—		—			—		(0.15	)
	$	0.09		$	0.10	$	(0.26	)	$	0.19	$	(0.64	)

Diluted earnings (loss) per share:
Continuing operations	$	0.09		$	0.10	$	(0.26	)	$	0.19	$	(0.49	)
Discontinued operations		—			—		—			—		(0.15	)
	$	0.09		$	0.10	$	(0.26	)	$	0.19	$	(0.64	)

Shares used in per share calculations:
Basic		53,454			53,482		52,031			53,468		52,050
Diluted		54,384			54,312		52,031			54,484		52,050

Penguin Solutions, Inc. Reconciliation of GAAP to Non-GAAP Measures (In thousands, except percentages) (Unaudited)

	Three Months Ended									Six Months Ended
	February 28, 2025			November 29, 2024			March 1, 2024			February 28, 2025			March 1, 2024
GAAP gross profit	$	104,648		$	97,812		$	81,934		$	202,460		$	164,784
Share-based compensation expense		1,776			1,643			1,691			3,419			3,506
Amortization of acquisition-related intangibles		5,907			5,909			5,894			11,816			11,838
Cost of sales-related restructuring		77			(42	)		216			35			884
Other		—			(200	)		—			(200	)		—
Non-GAAP gross profit	$	112,408		$	105,122		$	89,735		$	217,530		$	181,012

GAAP gross margin		28.6	%		28.7	%		28.8	%		28.7	%		29.5	%
Effect of adjustments		2.2	%		2.1	%		2.7	%		2.1	%		2.9	%
Non-GAAP gross margin		30.8	%		30.8	%		31.5	%		30.8	%		32.4	%

GAAP operating expenses	$	86,160		$	80,456		$	85,246		$	166,616		$	166,791
Share-based compensation expense		(9,804	)		(9,888	)		(8,948	)		(19,692	)		(18,103	)
Amortization of acquisition-related intangibles		(2,932	)		(3,846	)		(3,857	)		(6,778	)		(7,921	)
Diligence, acquisition and integration expense		(567	)		(833	)		(5,885	)		(1,400	)		(6,674	)
Redomiciliation costs ⁽¹⁾		(2,359	)		(1,243	)		—			(3,602	)		—
Impairment of goodwill		(6,079	)		—			—			(6,079	)		—
Restructuring charges		(859	)		(109	)		(3,335	)		(968	)		(6,274	)
Other⁽¹⁾		(242	)		(333	)		—			(575	)		—
Non-GAAP operating expenses	$	63,318		$	64,204		$	63,221		$	127,522		$	127,819

GAAP operating income (loss)	$	18,488		$	17,356		$	(3,312	)	$	35,844		$	(2,007	)
Share-based compensation expense		11,580			11,531			10,639			23,111			21,609
Amortization of acquisition-related intangibles		8,839			9,755			9,751			18,594			19,759
Cost of sales-related restructuring		77			(42	)		216			35			884
Diligence, acquisition and integration expense		567			833			5,885			1,400			6,674
Redomiciliation costs ⁽¹⁾		2,359			1,243			—			3,602			—
Impairment of goodwill		6,079			—			—			6,079			—
Restructuring charges		859			109			3,335			968			6,274
Other⁽¹⁾		242			133			—			375			—
Non-GAAP operating income	$	49,090		$	40,918		$	26,514		$	90,008		$	53,193
⁽¹⁾ In the second quarter of fiscal 2025 we began breaking out redomiciliation costs from “Other.” All periods presented have been adjusted to reflect this change.

Penguin Solutions, Inc. Reconciliation of GAAP to Non-GAAP Measures (In thousands, except per share amounts) (Unaudited)

	Three Months Ended									Six Months Ended
	February 28, 2025			November 29, 2024			March 1, 2024			February 28, 2025			March 1, 2024
GAAP net income (loss) attributable to Penguin Solutions	$	8,082		$	5,217		$	(13,620	)	$	13,299		$	(25,393	)
Share-based compensation expense		11,580			11,531			10,639			23,111			21,609
Amortization of acquisition-related intangibles		8,839			9,755			9,751			18,594			19,759
Cost of sales-related restructuring		77			(42	)		216			35			884
Diligence, acquisition and integration expense		567			833			5,885			1,400			6,674
Redomiciliation costs ⁽¹⁾		2,359			1,243			—			3,602			—
Impairment of goodwill		6,079			—			—			6,079			—
Restructuring charges		859			109			3,335			968			6,274
Amortization of debt issuance costs		950			953			968			1,903			2,010
Loss (gain) on extinguishment or prepayment of debt		—			—			325			—			325
Foreign currency (gains) losses		24			1,028			182			1,052			(364	)
Other⁽¹⁾		242			133			—			375			—
Income tax effects		(5,822	)		(4,242	)		(3,540	)		(10,064	)		(5,099	)
Non-GAAP net income attributable to Penguin Solutions		33,836			26,518			14,141			60,354			26,679

Preferred share dividends		2,600			—			—			2,600			—
Non-GAAP income available for distribution		31,236			26,518			14,141			57,754			29,887
Income allocated to participating securities		2,706			—			—			2,610			—
Non-GAAP net income available to ordinary shareholders	$	28,530		$	26,518		$	14,141		$	55,144		$	29,887

Weighted-average shares outstanding – Diluted:
GAAP weighted-average shares outstanding		54,384			54,312			52,031			54,484			52,050
Adjustment for dilutive securities and capped calls		—			—			1,043			—			1,128
Non-GAAP weighted-average shares outstanding		54,384			54,312			53,074			54,484			53,178

Diluted earnings (loss) per share from continuing operations:
GAAP diluted earnings (loss) per share	$	0.09		$	0.10		$	(0.26	)	$	0.19		$	(0.49	)
Effect of adjustments		0.43			0.39			0.53			0.82			0.99
Non-GAAP diluted earnings per share	$	0.52		$	0.49		$	0.27		$	1.01		$	0.50

Net income (loss) attributable to Penguin Solutions	$	8,082		$	5,217		$	(13,620	)	$	13,299		$	(25,393	)
Interest expense, net		2,183			4,396			7,249			6,579			16,808
Income tax provision (benefit)		7,643			6,360			2,198			14,003			5,732
Depreciation expense and amortization of intangible assets		14,037			14,961			17,156			28,998			34,810
Share-based compensation expense		11,580			11,531			10,639			23,111			21,609
Cost of sales-related restructuring		77			(42	)		216			35			884
Diligence, acquisition and integration expense		567			833			5,885			1,400			6,674
Redomiciliation costs ⁽¹⁾		2,359			1,243			—			3,602			—
Impairment of goodwill		6,079			—			—			6,079			—
Restructuring charges		859			109			3,335			968			6,274
Loss on extinguishment of debt		—			—			325			—			325
Other⁽¹⁾		242			133			—			375			—
Adjusted EBITDA	$	53,708		$	44,741		$	33,383		$	98,449		$	67,723
⁽¹⁾ In the second quarter of fiscal 2025 we began breaking out redomiciliation costs from “Other.” All periods presented have been adjusted to reflect this change.

Penguin Solutions, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)

As of	February 28, 2025			August 30, 2024
Assets
Cash and cash equivalents	$	621,682		$	383,147
Short-term investments		25,323			6,337
Accounts receivable, net		330,384			251,743
Inventories		199,737			151,213
Other current assets		67,639			75,264
Total current assets		1,244,765			867,704
Property and equipment, net		97,116			106,548
Operating lease right-of-use assets		56,363			60,349
Intangible assets, net		103,280			121,454
Goodwill		155,879			161,958
Deferred tax assets		84,944			85,078
Other noncurrent assets		68,997			71,415
Total assets	$	1,811,344		$	1,474,506

Liabilities and Equity
Accounts payable and accrued expenses	$	278,093		$	219,090
Current debt		19,891			—
Deferred revenue		121,646			63,954
Other current liabilities		54,075			44,552
Total current liabilities		473,705			327,596
Long-term debt		638,900			657,347
Noncurrent operating lease liabilities		56,816			60,542
Other noncurrent liabilities		30,032			29,813
Total liabilities		1,199,453			1,075,298

Commitments and contingencies

Penguin Solutions shareholders’ equity:
Preferred shares		6			—
Ordinary shares		1,849			1,807
Additional paid-in capital		731,323			513,335
Retained earnings		40,684			29,985
Treasury shares		(171,351	)		(153,756	)
Accumulated other comprehensive income (loss)		17			10
Total Penguin Solutions shareholders’ equity		602,528			391,381
Noncontrolling interest in subsidiary		9,363			7,827
Total equity		611,891			399,208
Total liabilities and equity	$	1,811,344		$	1,474,506

Penguin Solutions, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Three Months Ended									Six Months Ended
	February 28, 2025			November 29, 2024			March 1, 2024			February 28, 2025			March 1, 2024
Cash flows from operating activities
Net income (loss)	$	8,871		$	5,964		$	(13,007	)	$	14,835		$	(32,367	)
Net loss from discontinued operations		—			—			—			—			(8,148	)
Net income (loss) from continuing operations		8,871			5,964			(13,007	)		14,835			(24,219	)
Adjustments to reconcile net income (loss) from continuing operations to cash provided by (used for) operating activities
Depreciation expense and amortization of intangible assets		14,037			14,961			17,156			28,998			34,810
Amortization of debt issuance costs		950			953			968			1,903			2,010
Share-based compensation expense		11,580			11,531			10,639			23,111			21,609
Impairment of goodwill		6,079			—			—			6,079			—
Loss on extinguishment or prepayment of debt		—			—			325			—			325
Deferred income taxes, net		(48	)		211			476			163			194
Other		(716	)		(712	)		(208	)		(1,428	)		456
Changes in operating assets and liabilities:
Accounts receivable		(54,755	)		(23,885	)		872			(78,640	)		49,530
Inventories		47,215			(93,380	)		35,678			(46,165	)		2,214
Other assets		15,015			705			(23,229	)		15,720			(21,127	)
Accounts payable and accrued expenses and other liabilities		24,649			97,471			(22,587	)		122,120			994
Payment of acquisition-related contingent consideration		—			—			(29,000	)		—			(29,000	)
Net cash provided by (used for) operating activities from continuing operations		72,877			13,819			(21,917	)		86,696			37,796
Net cash used for operating activities from discontinued operations		—			—			—			—			(28,235	)
Net cash provided by (used for) operating activities		72,877			13,819			(21,917	)		86,696			9,561

Cash flows from investing activities
Capital expenditures and deposits on equipment		(2,335	)		(1,836	)		(5,204	)		(4,171	)		(9,852	)
Proceeds from maturities of investment securities		11,055			3,780			12,290			14,835			21,955
Purchases of held-to-maturity investment securities		(12,671	)		(20,723	)		(11,034	)		(33,394	)		(19,503	)
Purchases of non-marketable investments		—			—			—			—			—
Other		(398	)		(143	)		(558	)		(541	)		(746	)
Net cash used for investing activities from continuing operations		(4,349	)		(18,922	)		(4,506	)		(23,271	)		(8,146	)
Net cash provided by investing activities from discontinued operations		—			—			—			—			118,938
Net cash provided by (used for) investing activities	$	(4,349	)	$	(18,922	)	$	(4,506	)	$	(23,271	)	$	110,792

Penguin Solutions, Inc. Consolidated Statements of Cash Flows, Continued (In thousands) (Unaudited)
	Three Months Ended									Six Months Ended
	February 28, 2025			November 29, 2024			March 1, 2024			February 28, 2025			March 1, 2024
Cash flows from financing activities
Proceeds from issuance of convertible preferred shares, net of issuance costs	$	191,182		$	—		$	—		$	191,182		$	—
Repayments of debt		—			—			(37,211	)		—			(51,634	)
Payment of acquisition-related contingent consideration		—			—			(21,000	)		—			(21,000	)
Payments to acquire ordinary shares		(6,472	)		(11,123	)		(2,732	)		(17,595	)		(15,862	)
Payment of preferred share cash dividends		(2,233	)		—			—			(2,233	)		—
Distribution to noncontrolling interest		—			—			—			—			(1,470	)
Proceeds from issuance of ordinary shares		382			3,360			792			3,742			4,247
Other		—			—			(1	)		—			(583	)
Net cash used for financing activities from continuing operations		182,859			(7,763	)		(60,152	)		175,096			(86,302	)
Net cash used for financing activities from discontinued operations		—			—			—			—			(606	)
Net cash used for financing activities		182,859			(7,763	)		(60,152	)		175,096			(86,908	)

Effect of changes in currency exchange rates		—			—			(155	)		—			(1,180	)
Net increase (decrease) in cash, cash equivalents and restricted cash		251,387			(12,866	)		(86,730	)		238,521			32,265
Cash, cash equivalents and restricted cash at beginning of period		370,611			383,477			529,059			383,477			410,064
Cash, cash equivalents and restricted cash at end of period	$	621,998		$	370,611		$	442,329		$	621,998		$	442,329

View source version on businesswire.com: https://www.businesswire.com/news/home/20250402373835/en/

Investor Contact:

Suzanne Schmidt

Investor Relations

+1-510-360-8596

[email protected]

PR Contact:

Maureen O’Leary

Director Communications

1-602-330-6846

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Software Networks Hardware Electronic Design Automation Data Management Technology Artificial Intelligence Semiconductor Security Engineering Manufacturing Telecommunications

MEDIA:

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April 2, 2025 4:13 pm

FormFactor Doubles Capacity at Taiwan Service Center to Meet Growing Demand

Strategic investment enhances local capabilities to elevate customer support and satisfaction with FormFactor products

LIVERMORE, Calif., April 02, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (NASDAQ: FORM), a leading provider of test and measurement technologies for the semiconductor industry, is pleased to announce the significant expansion of its Taiwan Service Center. This strategic investment aims to enhance the company’s capabilities and better serve its customers in Taiwan and across Asia. The service center plays a pivotal role in supporting new technologies for chip manufacturers developing advanced packaging technologies driven by advancements in artificial intelligence (AI), high-performance computing (HPC), mobile, and automotive applications.

The newly expanded facility features double the cleanroom space and additional office areas, enabling FormFactor to streamline repair turnaround times and enhance its capabilities to serve the region’s rapid growth. This investment increases capacity to provide testing and repair services for FormFactor products, which are crucial to meeting the accelerating requirements in this important region.

“The expansion of our Taiwan Service Center demonstrates our ongoing commitment to meeting the semiconductor industry’s evolving demands,” said Mike Slessor, CEO of FormFactor. “With this expansion, we’ll be able to respond more quickly to customers’ needs, delivering more efficient, comprehensive, and reliable support that helps our customers maintain a competitive edge in an increasingly dynamic market.”

In addition to larger office and cleanroom spaces, the center offers expanded probe card services. The facility also includes a technology demo center to support customers in co-packaged optics technologies, showcasing state-of-the-art silicon photonics test technologies and their applications in next-generation semiconductor solutions.

About FormFactor

FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full IC life cycle – from characterization, modeling, reliability, and design debug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws. These statements are based on management’s current expectations and beliefs as of the date of this release and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the expansion of the service center and its impact on the market, the Company’s customers, and the Company’s capabilities and capacity. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” and “continue,” the negative or plural of these words and similar expressions and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: success of the expansion; changes in demand for the Company’s testing and repair services in the region; market opportunity; supply chain and labor dynamics; other external economic and political factors; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

FormFactor Investor Contact

Stan Finkelstein

Investor Relations

(925) 290-4273

[email protected]

April 2, 2025 4:13 pm

Kestra Medical Technologies, Ltd. to Report Third Quarter Fiscal 2025 Financial Results on April 14

KIRKLAND, Wash., April 02, 2025 (GLOBE NEWSWIRE) — Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today announced that it will report financial results for the third quarter fiscal 2025 on Monday, April 14. Management will host a corresponding conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time.

A live and archived webcast of the conference call will be available in the “Events” section of the investor relations website. Participants are encouraged to register on the website at least 10 minutes prior to the start of the conference call.

About Kestra

Kestra Medical Technologies, Ltd. is a commercial-stage wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. For more information, visit www.kestramedical.com.

Investor contact
Neil Bhalodkar
[email protected]

April 2, 2025 4:13 pm

Pioneer Power to Host 2024 Fourth Quarter and Year End Financial Results Conference Call on Tuesday, April 15, 2025 at 4:30 p.m. ET

FORT LEE, N.J.–(BUSINESS WIRE)–
Pioneer Power Solutions, Inc. (Nasdaq: PPSI) (“Pioneer”), a leader in the design, manufacture, service and integration of distributed energy resources, power generation equipment and mobile electric vehicle (“EV”) charging solutions, today announced that management will host a conference call on Tuesday, April 15, 2025 at 4:30 p.m. Eastern Time to discuss Pioneer’s 2024 fourth quarter and year end financial results with the investment community. The company will release results for the fourth quarter and the year ended December 31, 2024 on Tuesday, April 15, 2025 after the markets close.

Anyone interested in participating should call 1-877-407-0789 if calling within the United States or 1-201-689-8562 if calling internationally. When asked, please reference confirmation code 13752590.

A replay will be available until April 22, 2025, which can be accessed by dialing 1-844-512-2921 if calling within the United States or 1-412-317-6671 if calling internationally. Please use passcode 13752590 to access the replay.

The call will also be accompanied live by webcast over the Internet and accessible at https://viavid.webcasts.com/starthere.jsp?ei=1712844&tp_key=c8ff18fe09.

About Pioneer Power Solutions, Inc.

Pioneer Power Solutions, Inc. is a leader in the design, manufacture, integration, service and distribution of electric power systems, distributed energy resources, power generation equipment and mobile electric charging solutions for applications in the utility, industrial and commercial markets. To learn more about Pioneer, please visit its website at www.pioneerpowersolutions.com.

e-Boost is Pioneer’s portfolio of smart, mobile EV charging solutions. The Company has been aggressively marketing e-Boost to electric bus and truck manufacturers, fleet management companies, municipalities and EV infrastructure providers since its initial launch in November 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250402603804/en/

Brett Maas, Managing Partner

Hayden IR

(646) 536-7331

[email protected]

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Engineering Automotive Automotive Manufacturing Utilities EV/Electric Vehicles Manufacturing Energy

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April 2, 2025 4:12 pm

Akebia Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

CAMBRIDGE, Mass., April 02, 2025 (GLOBE NEWSWIRE) — Akebia Therapeutics ^®, Inc. (Nasdaq: AKBA), a biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease, granted eight newly-hired employees options to purchase an aggregate of 73,325 shares of Akebia’s common stock on March 31, 2025. The options were granted as an inducement material to each employee entering into employment with Akebia. The options were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $1.92 per share, which is equal to the closing price of Akebia’s common stock on the grant date. The stock options vest over four years, with 25% of the shares vesting on the first anniversary of the grant date and the remaining 75% of shares vesting quarterly thereafter, in each case, subject to the new employee’s continued service with Akebia. Each stock option has a 10-year term and is subject to the terms and conditions of Akebia’s inducement award program and a stock option agreement covering the grant.

About Akebia Therapeutics

Akebia Therapeutics, Inc. is a fully integrated biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease. Akebia was founded in 2007 and is headquartered in Cambridge, Massachusetts. For more information, please visit our website at www.akebia.com, which does not form a part of this release.

Akebia Therapeutics Contact

Mercedes Carrasco
[email protected]

April 2, 2025 4:12 pm

RH Reports Fourth Quarter and Fiscal 2024 Results

CORTE MADERA, Calif.–(BUSINESS WIRE)–
RH (NYSE: RH) has released its financial results for the fourth quarter and fiscal year 2024 ended February 1, 2025, in a shareholder letter from Chairman and Chief Executive Officer Gary Friedman, available on the Investor Relations section of its website at ir.rh.com.

As previously announced, RH leadership will host a live conference call and audio webcast at 2:00 pm Pacific Time (5:00 pm Eastern Time) today. The live conference call may be accessed by dialing 800.715.9871 or 646.307.1963 for international callers (conference ID: 8284432). The call and replay can also be accessed via audio webcast at ir.rh.com.

ABOUT RH

RH (NYSE: RH) is a curator of design, taste and style in the luxury lifestyle market. The Company offers collections through its retail galleries, sourcebooks, and online at RH.com, RHModern.RH.com, RHBabyandChild.RH.com, RHTEEN.RH.com and Waterworks.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250402491707/en/

PRESS CONTACT

[email protected]

INVESTOR RELATIONS CONTACT

Allison Malkin, 203.682.8225, [email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Interior Design Retail Luxury Home Goods Specialty Construction & Property

MEDIA:

April 2, 2025 4:12 pm

Compass Therapeutics to Participate in the Stifel 2025 Virtual Targeted Oncology Forum

BOSTON, April 02, 2025 (GLOBE NEWSWIRE) — Compass Therapeutics, Inc. (Nasdaq: CMPX), a clinical-stage, oncology-focused biopharmaceutical company developing proprietary antibody-based therapeutics to treat multiple human diseases, today announced that the Company will present at the Stifel 2025 Virtual Targeted Oncology Forum taking place April 8-9, 2025.

Presentation Details

Date: Tuesday, April 8, 2025
Time: 3:00 PM EDT
Webcast Link: https://wsw.com/webcast/stifel99/cmpx/2119000

Virtual/Replay availability: The corporate presentation will be archived for 90 days on Compass’ Events page.

About Compass Therapeutics

Compass Therapeutics, Inc. is a clinical-stage oncology-focused biopharmaceutical company developing proprietary antibody-based therapeutics to treat multiple human diseases. Compass’s scientific focus is on the relationship between angiogenesis, the immune system, and tumor growth. The company pipeline of novel product candidates is designed to target multiple critical biological pathways required for an effective anti-tumor response. These include modulation of the microvasculature via angiogenesis-targeted agents, induction of a potent immune response via activators on effector cells in the tumor microenvironment, and alleviation of immunosuppressive mechanisms used by tumors to evade immune surveillance. Compass plans to advance its product candidates through clinical development as both standalone therapies and in combination with proprietary pipeline antibodies based on supportive clinical and nonclinical data. The company was founded in 2014 and is headquartered in Boston, Massachusetts. For more information, visit the Compass Therapeutics website at https://www.compasstherapeutics.com.

Investor Contact

[email protected]

Media Contact

Anna Gifford, Chief of Staff
[email protected]
617-500-8099

April 2, 2025 4:11 pm

PennantPark Floating Rate Capital Ltd. Announces Monthly Distribution of $0.1025 per Share

MIAMI, April 02, 2025 (GLOBE NEWSWIRE) — PennantPark Floating Rate Capital Ltd. (the “Company”) (NYSE: PFLT) declares its monthly distribution for April 2025 of $0.1025 per share, payable on May 1, 2025 to stockholders of record as of April 15, 2025. The distribution is expected to be paid from taxable net investment income. The final specific tax characteristics of the distribution will be reported to stockholders on Form 1099 after the end of the calendar year and in the Company’s periodic report filed with the Securities and Exchange Commission.

The Company, which operates as a regulated investment company (“RIC”), generates qualified interest income and short-term capital gains that may be exempt from U.S. withholding tax when distributed to non-U.S. stockholders. The U.S. tax law permits a RIC to report the portion of distributions paid that represents interest-related dividends as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation.

The specific tax characteristics of this distribution can be found on our website www.pennantpark.com.

ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.

PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market private companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.

ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing $9.8 billion of investable capital, including potential leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, Los Angeles and Amsterdam.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act and Section 21E(b)(2)(B) of the Exchange Act the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Floating Rate Capital Ltd. files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.

The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

CONTACT:
Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com

April 2, 2025 4:11 pm

Resources Connection Reports Financial Results for Third Quarter Fiscal 2025

Resources Connection Reports Financial Results for Third Quarter Fiscal 2025

DALLAS–(BUSINESS WIRE)–
Resources Connection, Inc. (Nasdaq: RGP) (the “Company”), a professional services firm, today announced its financial results for its third quarter of fiscal 2025 ended February 22, 2025.

Third Quarter Fiscal 2025 Highlights Compared to Prior Year Quarter:

Revenue of $129.4 million compared to $151.3 million, a decline of 14.5%
Same-day constant currency revenue, a non-GAAP measure, declined by 11.2%
Gross margin of 35.1% compared to 37.0%
Selling, general and administrative expenses (“SG&A”) of $51.2 million compared to $49.6 million
Net loss of $44.1 million, including a non-cash goodwill impairment charge of $42.0 million, compared to net income of $2.6 million
Diluted (loss) earnings per common share of $(1.34) compared to $0.08
Adjusted diluted (loss) earnings per common share, a non-GAAP measure, of $(0.08) compared to $0.17
Adjusted EBITDA, a non-GAAP measure, of $1.7 million (Adjusted EBITDA margin of 1.3%) compared to $10.8 million (Adjusted EBITDA margin of 7.1%)
Cash dividends declared of $0.14 per share consistent with the prior year quarter
Cash and cash equivalents plus potential borrowings available under the senior credit facility of up to $246.0 million compared to $287.4 million, and zero debt, consistent with prior year quarter

Management Commentary

“We delivered results in line or better than our outlook, even though mid-week holiday impact was deeper than expected and the second half of Q3 became more disrupted in the US,” said Kate W. Duchene, Chief Executive Officer. “This quarter, we’ve made notable progress driving stronger pricing, larger average deal size and better win ratios, while also improving efficiency in our cost structure. While the volume of new opportunities was soft in the third quarter, our pipeline quality has meaningfully improved to include higher value and larger deals. Our client relationships remain strong despite the uncertainty in the macroenvironment, which will enable us to continue to grow into new buying centers. We remain disciplined and focused on executing our diversification strategy which, along with our refreshed brand positioning has been well received by our client base. I want to thank our employees for their strength and resilience working in a disrupted operating environment.”

Third Quarter Fiscal 2025 Results

Revenue was $129.4 million (or $134.4 million on a constant currency basis), declining 14.5% (or 11.2% on a constant currency basis) compared to $151.3 million in the third quarter of fiscal 2024. The demand environment remains choppy and has not shown consistent signs of improving. Clients continued to be cautious and selective about moving forward with transformation projects or filling professional interim roles. In addition, the mid-week timing of both the Christmas and New Year’s holidays caused a more significant impact on the third quarter revenue compared to the prior fiscal quarter. Compared to the prior year quarter, billable hours decreased by 17.0%, while the average bill rate increased by 3.4% (or 4.2% on a constant currency basis). The year-over-year improvement in average bill rate is attributable to an ongoing focus on value-based pricing and a shift in revenue mix towards higher value consulting projects. Additionally, average bill rates continue to reflect the global revenue mix, which currently includes a higher proportion of revenue generated in Asia Pacific, where bill rates are significantly lower than in the United States (“U.S.”) and Europe.

Gross margin in the third quarter of fiscal 2025 was 35.1% compared to 37.0% in the third quarter of fiscal 2024. The decline was primarily due to additional holiday pay on Thanksgiving in the third quarter of fiscal 2025. In addition, the mid-week timing of both the Christmas and New Year’s holidays caused lower utilization of our salaried consultants. These adverse impact was partially offset by an improved pay/bill ratio.

SG&A for the third quarter of fiscal 2025 was $51.2 million, or 39.5% of revenue, compared to $49.6 million, or 32.8% of revenue, for the third quarter of fiscal 2024. The year-over-year increase was primarily driven by a $1.3 million increase in employee termination benefits associated with the December 2024 reduction in force, intended to enhance efficiencies through reduced costs and streamlined operations (the “2025 Restructuring Plan”), and a $1.1 million increase in computer software expenses primarily associated with our technology transformation initiative. These increases were partially offset by a $1.2 million decrease in employee compensation expense partially as a result of the reduction in force.

Given the slow recovery in the On-Demand and Consulting business segments, the Company conducted a goodwill impairment analysis during the third quarter of fiscal 2025 and recorded a non-cash goodwill impairment charge of $42.0 million ($12.4 million was recorded in the On-Demand Talent segment and $29.6 million was recorded in the Consulting segment).

Income tax benefit for the third quarter of fiscal 2025 was $5.6 million, or an effective tax rate of 11.3%, compared to an income tax expense of $1.9 million, or an effective tax rate of 43.2%, for the third quarter of fiscal 2024. The income tax benefit in the third quarter of fiscal 2025 was primarily attributed to the Company’s pretax loss. The lower effective tax rate in the third quarter of fiscal 2025 was due to the non-deductible portion of the goodwill impairment, coupled with the $2.2 million establishment of a valuation allowance for the Company’s UK entity. The higher effective tax rate in the third quarter of fiscal 2024 resulted largely from a lower pretax income base increasing the tax expense ratio.

Net loss for the third quarter of fiscal 2025 was $44.1 million (net loss margin of 34.0%), compared to net income of $2.6 million (net income margin of 1.7%) in the prior year quarter, a difference of $46.6 million, which was primarily due to the non-cash goodwill impairment charge in the third quarter of fiscal 2025. The Company delivered an Adjusted EBITDA margin of 1.3% in the third quarter of fiscal 2025 compared to 7.1% in the prior year quarter.

Third Quarter Fiscal 2025 Segment Results

On-Demand Talent– Revenue in the On-Demand Talent segment declined by $17.1 million or 26.6%, to $47.1 million in the third quarter of fiscal 2025 compared to $64.2 million in the third quarter of fiscal 2024 primarily due to a 24.8% decrease in billable hours and a 2.1% decline in average bill rate (or 1.4% on a constant currency basis). Demand for interim support remained challenged in the third quarter due in part to the labor market trend with less talent movement across employers, which has historically been a generator for demand in this segment.

Consulting– Revenue in the Consulting segment declined by $3.2 million or 5.8%, to $52.6 million in the third quarter of fiscal 2025 compared to $55.8 million in the third quarter of fiscal 2024. The decline was primarily due to an 18.8% decrease in billable hours, which was partially offset by a 12.8% (or 13.5% on a constant currency basis) increase in the average bill rate largely as a result of the Company’s value-based pricing initiative as well as a change in geographic revenue mix. Additionally, the current quarter results include the addition of Reference Point (acquired in the first quarter of fiscal 2025) which carries a significantly higher average bill rate. Reference Point contributed $4.0 million of revenue during the third fiscal quarter.

Europe and Asia Pacific– Revenue in the Europe and Asia Pacific segment declined by $1.1 million or 5.4%, to $18.6 million in the third quarter of fiscal 2025 compared to $19.6 million in the third quarter of fiscal 2024. Billable hours decreased by 5.5% and were partially offset by a 1.7% (or 5.2% on a constant currency basis) increase in the average bill rate as a result of the Company’s value-based pricing initiative.

Outsourced Services – Revenue in the Outsourced services segment remained at $9.4 million consistent with the prior year quarter. Both billable hours and average bill rates remained steady.

All Other– Revenue in the All Other segment declined by $0.5 million or 21.7% to $1.8 million in the third quarter of fiscal 2025 compared to $2.3 million the prior year quarter. The billable hours decreased by 31.9% partially offset by an increase in average bill rate of 6.1% (or 6.1% on a constant currency basis).


RESOURCES CONNECTION, INC. SUMMARY OF CONSOLIDATED FINANCIAL RESULTS (In thousands, except per share amounts)

	Three Months Ended						Nine Months Ended
	February 22,			February 24,			February 22,			February 24,
		2025			2024			2025			2024
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenue	$	129,438		$	151,307		$	411,991		$	484,603
Direct cost of services		84,064			95,299			260,544			298,118
Gross profit		45,374			56,008			151,447			186,485
Selling, general and administrative expenses		51,189			49,589			151,404			162,514
Goodwill impairment		42,039			—			125,376			—
Amortization expense		1,407			1,413			4,461			4,048
Depreciation expense		464			745			1,466			2,432
(Loss) income from operations		(49,725	)		4,261			(131,260	)		17,491
Interest income, net		(106	)		(225	)		(469	)		(830	)
Other expense (income)		22			(1	)		(50	)		(6	)
(Loss) income before income tax (benefit) expense		(49,641	)		4,487			(130,741	)		18,327
Income tax (benefit) expense		(5,589	)		1,937			(12,267	)		7,765
Net (loss) income	$	(44,052	)	$	2,550		$	(118,474	)	$	10,562

Net (loss) income per common share:
Basic	$	(1.34	)	$	0.08		$	(3.58	)	$	0.32
Diluted	$	(1.34	)	$	0.08		$	(3.58	)	$	0.31

Weighted-average number of common and common equivalent shares outstanding:
Basic		32,938			33,463			33,130			33,428
Diluted		32,938			33,759			33,130			33,906

Revenue by Segment
On-Demand Talent	$	47,089		$	64,162		$	153,014		$	213,085
Consulting		52,597			55,828			168,265			171,731
Europe & Asia Pacific		18,576			19,631			56,260			64,700
Outsourced Services		9,367			9,375			28,284			27,859
All Other		1,809			2,311			6,168			7,228
Total consolidated revenue	$	129,438		$	151,307		$	411,991		$	484,603

Cash dividend
Cash dividends declared per common share	$	0.14		$	0.14		$	0.42		$	0.42
Total cash dividends paid	$	4,632		$	4,692		$	14,014		$	14,093

Conference Call Information

RGP will hold a conference call for analysts and investors at 5:00 p.m., ET, today, April 2, 2025. A live webcast of the call will be available on the Events section of the Company’s Investor Relations website. To access the call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time by visiting the Company’s Investor Relations website at https://rgp.com/ir/investor-relations-events/.

About RGP

RGP is a professional services firm that powers the operational needs and change initiatives of its client base utilizing a combination of three distinct engagement brands:

On-Demand by RGP^TM: Our on-demand talent solutions, providing businesses with a go-to source for bringing in experts when they need them;
Veracity by RGP^TM: Our consulting arm, driving transformation across people, processes & technology; and
Countsy by RGP^TM: Our outsourced services for accounting, human resources and equity, helping startups, scaleups and spinouts focus on their growth.

Regardless of engagement model, we Dare to Work Differently® by leveraging human connection and collaboration to deliver practical solutions and impactful results. We offer a more effective way to work that favors flexibility and agility as businesses confront change and transformation pressures amid skilled labor shortages.

Based in Dallas, Texas with offices worldwide, we annually engage with 1,700 clients around the world from 42 physical practice offices, multiple virtual offices and approximately 3,200 professionals. RGP is proud to have served 88% of the Fortune 100 as of February 2025 and has been recognized by U.S. News & World Report (2024-2025 Best Companies to Work for) and Forbes (America’s Best Management Consulting Firms 2024, America’s Best Midsize Employers 2024, World’s Best Management Consulting Firms 2024).

The Company is listed on the Nasdaq Global Select Market, the exchange’s highest tier by listing standards. To learn more about RGP, visit: http://www.rgp.com. (RGP-F)

Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to expectations concerning matters that are not historical facts. Such forward-looking statements may be identified by words such as “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “remain,” “should” or “will” or the negative of these terms or other comparable terminology. In this press release, such statements include statements regarding our operational plans, the expected benefits of our segments and our expectations regarding the demand environment. Such statements and all phases of the Company’s operations are subject to known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievements and those of our industry to differ materially from those expressed or implied by these forward-looking statements. Risks and uncertainties include, but are not limited to, the following: risks related to an economic downturn or the continuation or deterioration of general and ongoing macroeconomic conditions, potential adverse effects to our and our clients’ liquidity and financial performances from bank failures or other events affecting financial institutions, risks arising from epidemic diseases or pandemics, the highly competitive nature of the market for professional services, risks related to the loss of a significant number of our consultants, or an inability to attract and retain new consultants, the possible impact on our business from the loss of the services of one or more key members of our senior management, risks related to potential significant increases in wages or payroll-related costs, our ability to secure new projects from clients, our inability to adapt to a changing competitive landscape including for technological advancements, our ability to achieve or maintain a suitable pay/bill ratio, our ability to compete effectively in the competitive bidding process, risks related to unfavorable provisions in our contracts which may permit our clients to, among other things, terminate the contracts partially or completely at any time prior to completion, our ability to realize the level of benefit that we expect from our restructuring and reorganization initiatives, risks that our digital expansion and technology transformation efforts may not be successful, our ability to build an efficient support structure as our business continues to grow and transform, our ability to grow our business, manage our growth or sustain our current business, our ability to serve clients internationally, additional operational challenges from our international activities possible disruption of our business from our past and future acquisitions, the possibility that our recent rebranding efforts may not be successful, our potential inability to adequately protect our intellectual property rights, risks that our computer hardware and software and telecommunications systems are damaged, breached or interrupted, risks related to the failure to comply with data privacy laws and regulations and the adverse effect it may have on our reputation, results of operations or financial condition, our ability to comply with governmental, regulatory and legal requirements and company policies, the possible legal liability for damages resulting from the performance of projects by our consultants or for our clients’ mistreatment of our personnel, risks arising from changes in applicable tax laws or adverse results in tax audits or interpretations, the possible adverse effect on our business model from the reclassification of our independent contractors by foreign tax and regulatory authorities, the possible difficulty for a third party to acquire us and resulting depression of our stock price, the operating and financial restrictions from our credit facility, risks related to the variable rate of interest in our credit facility, the possibility that we are unable to or elect not to pay our quarterly dividend payment, and other factors and uncertainties as are identified in our most recent Annual Report on Form 10-K for the year ended May 25, 2024, and our other public filings made with the Securities and Exchange Commission (File No. 0-32113). Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business or operating results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend, and undertakes no obligation, to update the forward-looking statements in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless required by law to do so.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures to assess our financial and operating performance that are not defined by or calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”) to assess our financial and operating performance. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the Consolidated Statements of Operations; or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable GAAP measure so calculated and presented. The following non-GAAP measures are presented in this press release:

Same-day constant currency revenue is adjusted for the following items:
- Currency impact. In order to remove the impact of fluctuations in foreign currency exchange rates, the Company calculates same-day constant currency revenue, which represents the outcome that would have resulted had exchange rates in the current period been the same as those in effect in the comparable prior period.
- Business days impact. In order to remove the fluctuations caused by comparable periods having a different number of business days, the Company calculates same-day revenue as current period revenue (adjusted for currency impact) divided by the number of business days in the current period, multiplied by the number of business days in the comparable prior period. The number of business days in each respective period is provided in the “Number of Business Days” section of the “Reconciliation of GAAP to Non-GAAP Financial Measures” table below.
EBITDA is calculated as net (loss) income before amortization expense, depreciation expense, interest and income taxes.
Adjusted EBITDA is calculated as EBITDA excluding stock-based compensation expense, technology transformation costs, acquisition costs, goodwill impairment, gain on sale of assets, and restructuring costs. We also present herein Adjusted EBITDA at the segment level as a measure used to assess the performance of our segments. Segment Adjusted EBITDA excludes certain shared corporate administrative costs that are not practical to allocate.
Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenue.
Adjusted diluted earnings (loss) per common share is calculated as diluted earnings (loss) per common share, excluding the per share impact of stock-based compensation expense, technology transformation costs, acquisition costs, goodwill impairment, gain on sale of assets, restructuring costs, and adjusted for the related tax effects of these adjustments.

We believe the above-mentioned non-GAAP financial measures, which are used by management to assess the core performance of our Company, provide useful information and additional clarity of our operating results to our investors in their own evaluation of the core performance of our Company and facilitate a comparison of such performance from period to period. These are not measurements of financial performance or liquidity under GAAP and should not be considered in isolation or construed as substitutes for revenue, net income or other cash flow data prepared in accordance with GAAP for purposes of analyzing our revenue, profitability or liquidity. These measures should be considered in addition to, and not as a substitute for, revenue, net income, earnings per share, cash flows or other measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently.


RESOURCES CONNECTION, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except number of business days)

Adjusted Revenue by Segment – Year-over-Year Comparison
	Three Months Ended
	February 22, 2025								February 24, 2024
	(Unaudited)								(Unaudited)
	As reported (GAAP)		Currency impact		Business days impact		Same-day constant currency revenue		As reported (GAAP)
On-Demand Talent	$	47,089	$	271	$	1,596	$	48,956	$	64,162
Consulting		52,597		333		1,731		54,661		55,828
Europe and Asia Pacific		18,576		605		62		19,243		19,631
Outsourced Services		9,367		—		318		9,685		9,375
All Other		1,809		—		61		1,870		2,311
Total Consolidated	$	129,438	$	1,209	$	3,768	$	134,415	$	151,307

Adjusted Revenue by Segment – Sequential Period Comparison
	Three Months Ended
	February 22, 2025								November 23, 2024
	(Unaudited)								(Unaudited)
	As reported (GAAP)		Currency impact		Business days impact		Same-day constant currency revenue		As reported (GAAP)
On-Demand Talent	$	47,089	$	60	$	3,991	$	51,140	$	53,452
Consulting		52,597		105		4,388		57,090		60,643
Europe and Asia Pacific		18,576		685		405		19,666		19,701
Outsourced Services		9,367		—		794		10,161		9,426
All Other		1,809		—		153		1,962		2,396
Total Consolidated	$	129,438	$	850	$	9,731	$	140,019	$	145,618

Adjusted Revenue by Segment – Year-over-Year Comparison
	Nine Months Ended
	February 22, 2025									February 24, 2024
	(Unaudited)									(Unaudited)
	As reported (GAAP)		Currency impact		Business days impact			Same-day constant currency revenue		As reported (GAAP)
On-Demand Talent	$	153,014	$	661	$	—		$	153,675	$	213,085
Consulting		168,265		658		(78	)		168,845		171,731
Europe and Asia Pacific		56,260		585		85			56,930		64,700
Outsourced Services		28,284		—		—			28,284		27,859
All Other		6,168		—		—			6,168		7,228
Total Consolidated	$	411,991	$	1,904	$	7		$	413,902	$	484,603

	Three Months Ended			Nine Months Ended
Number of Business Days	February 22, 2025	November 23, 2024	February 24, 2024	February 22, 2025	February 24, 2024
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
On-DemandTalent (1)	59	64	61	186	186
Consulting (1)	59	64	61	186	186
Europe & Asia (2)	62	63	62	188	188
Outsourced Services (1)	59	64	61	186	186
All Other (1)	59	64	61	186	186
(1) This represents the number of business days in the U.S.
(2) The business days in international regions represent the weighted average number of business days.

RESOURCES CONNECTION, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts and percentages)

	Three Months Ended
	February 22,			% of		February 24,			% of
Adjusted EBITDA	2025			Revenue		2024			Revenue
	(Unaudited)					(Unaudited)
Net (loss) income	$	(44,052	)	(34.0	%)	$	2,550		1.7	%
Adjustments:
Amortization expense		1,407		1.1	%		1,413		0.9	%
Depreciation expense		464		0.4	%		745		0.5	%
Interest income, net		(106	)	(0.1	%)		(225	)	(0.2	%)
Income tax (benefit) expense		(5,589	)	(4.3	%)		1,937		1.3	%
EBITDA		(47,876	)	(37.0	%)		6,420		4.2	%
Stock-based compensation expense		1,908		1.5	%		1,181		0.8	%
Amortized ERP system costs (1)		609		0.5	%		—		—	%
Technology transformation costs (2)		1,574		1.2	%		1,386		0.9	%
Acquisition costs (3)		492		0.4	%		156		0.1	%
Goodwill impairment (4)		42,039		32.5	%		—		—	%
Restructuring cost (5)		2,905		2.2	%		1,643		1.1	%
Adjusted EBITDA	$	1,651		1.3	%	$	10,786		7.1	%

Adjusted Diluted Earnings per Common Share
Diluted (loss) earnings per common share, as reported	$	(1.34	)			$	0.08
Stock-based compensation expense		0.06					0.03
Amortized ERP system costs (1)		0.02					—
Technology transformation costs (2)		0.05					0.04
Acquisition costs (3)		0.01					0.01
Goodwill impairment (4)		1.28					—
Restructuring cost (5)		0.09					0.04
Income tax impact of adjustments		(0.25	)				(0.03	)
Adjusted diluted earnings per common share	$	(0.08	)			$	0.17
(1) Amortized ERP system costs represent the amortization of capitalized technology transformation costs related to newly implemented Enterprise Resource Planning (ERP) system, which was recorded within Selling, General, and Administrative expenses on the Consolidated Statement of Operations.
(2) Technology transformation costs represent costs included in net income related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized.
(3) Acquisition costs primarily represent costs included in net income related to the Company’s business acquisition. These costs include transaction bonuses, cash retention bonus accruals, and fees paid to the Company’s broker, legal counsel, and other professional services firms.
(4) Goodwill impairment charge recognized during the three months ended February 22, 2025 was related to the On-Demand Talent and Consulting segments.
(5) The Company authorized the 2025 Restructuring Plan in December 2024. The 2023 U.S. restructuring plan was substantially completed during fiscal 2024.

	Nine Months Ended
	February 22,			% of		February 24,			% of
Adjusted EBITDA	2025			Revenue		2024			Revenue
	(Unaudited)					(Unaudited)
Net (loss) income	$	(118,474	)	(28.8	%)	$	10,562		2.2	%
Adjustments:
Amortization expense		4,461		1.1	%		4,048		0.8	%
Depreciation expense		1,466		0.4	%		2,432		0.5	%
Interest income, net		(469	)	(0.1	%)		(830	)	(0.2	%)
Income tax (benefit) expense		(12,267	)	(3.0	%)		7,765		1.6	%
EBITDA		(125,283	)	(30.4	%)		23,977		4.9	%
Stock-based compensation expense		5,417		1.3	%		4,249		0.9	%
Amortized ERP system costs (1)		609		0.1	%		—		—	%
Technology transformation costs (2)		5,475		1.3	%		4,987		1.0	%
Acquisition costs (3)		2,296		0.6	%		1,282		0.3	%
Goodwill impairment (4)		125,376		30.4	%		—		—	%
Gain on sale of assets (5)		(3,420	)	(0.8	%)		—		—	%
Restructuring cost (6)		3,157		0.8	%		3,898		0.8	%
Adjusted EBITDA	$	13,627		3.3	%	$	38,393		7.9	%

Adjusted Diluted Earnings per Common Share
Diluted (loss) earnings per common share, as reported	$	(3.58	)			$	0.31
Stock-based compensation expense		0.16					0.13
Amortized ERP system costs (1)		0.02					—
Technology transformation costs (2)		0.17					0.15
Acquisition costs (3)		0.07					0.04
Goodwill impairment (4)		3.78					—
(Gain) on sale of assets (5)		(0.10	)				—
Restructuring cost (6)		0.10					0.11
Income tax impact of adjustments		(0.55	)				(0.09	)
Adjusted diluted earnings per common share	$	0.07				$	0.65
(1) Amortized ERP system costs represent the amortization of capitalized technology transformation costs related to newly implemented Enterprise Resource Planning (ERP) system, which was recorded within Selling, General, and Administrative expenses on the Consolidated Statement of Operations.
(2) Technology transformation costs represent costs included in net income related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized.
(3) Acquisition costs primarily represent costs included in net income related to the Company’s business acquisitions. These costs include transaction bonuses, cash retention bonus accruals, and fees paid to the Company’s broker, legal counsel, and other professional services firms.
(4) Goodwill impairment charges recognized during the nine months ended February 22, 2025 were related to the On-Demand Talent, Consulting and Europe Asia Pacific segments.
(5) Gain on sale of assets was related to the Company’s sale of its Irvine office building, which was completed on August 15, 2024.
(6) The Company authorized the 2025 Restructuring Plan in December 2024. The 2023 U.S. restructuring plan was substantially completed during fiscal 2024.

Segment Results

During the first quarter of fiscal 2025, the Company identified the following newly defined operating segments:

On-Demand Talent – operating under the On-Demand by RGP^TM brand, this segment provides businesses with a go-to source for bringing in experts when they need them.
Consulting – operating under the Veracity by RGP^TM brand, this segment drives transformation process across people, processes and technology across domain areas including finance, technology and digital, risk and compliance and supply chain transformation.
Europe & Asia Pacific – is a geographically defined segment that offers both on-demand and consulting services (excluding the digital consulting business, which is included in our Consulting segment) to clients throughout Europe and Asia Pacific.
Outsourced Services – operating under the Countsy by RGP^TM brand, this segment offers finance, accounting and HR services provided to startups, spinouts and scaleups enterprises, utilizing a technology platform and fractional team.
Sitrick – a crisis communications and public relations firm which operates under the Sitrick brand, providing corporate, financial, transactional and crisis communication and management services.

The Company’s reportable segments are comprised of On-Demand, Consulting, Outsourced Services, and Europe & Asia Pacific. Sitrick does not individually meet the quantitative thresholds to qualify as a reportable segment. Therefore, Sitrick is disclosed under the “All Other” Segment. On July 1, 2024, the Company acquired Reference Point LLC, which is reported within the Consulting segment from the date of acquisition.


RESOURCES CONNECTION, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except for percentage)

	Three Months Ended										Nine Months Ended
	February 22, 2025			% of Revenue (1)		February 24, 2024			% of Revenue (1)		February 22, 2025			% of Revenue (1)		February 24, 2024			% of Revenue (1)
Adjusted EBITDA:	(Unaudited)					(Unaudited)					(Unaudited)					(Unaudited)
On-Demand Talent	$	2,567		5.5	%	$	7,341		11.4	%	$	10,731		7.0	%	$	24,560		11.5	%
Consulting		5,914		11.2	%		8,769		15.7	%		23,390		13.9	%		28,226		16.4	%
Europe & Asia Pacific		841		4.5	%		1,342		6.8	%		2,549		4.5	%		4,747		7.3	%
Outsourced Services		1,493		15.9	%		1,577		16.8	%		4,434		15.7	%		4,903		17.6	%
All Other		(727	)	(40.2	%)		(244	)	(10.6	%)		(1,720	)	(27.9	%)		(707	)	(9.8	%)
Unallocated items (2)		(8,437	)				(7,999	)				(25,757	)				(23,336	)
Adjustments:
Stock-based compensation expense		(1,908	)				(1,181	)				(5,417	)				(4,249	)
Amortized ERP system costs (3)		(609	)				—					(609	)				—
Technology transformation costs (4)		(1,574	)				(1,386	)				(5,475	)				(4,987	)
Acquisition costs (5)		(492	)				(156	)				(2,296	)				(1,282	)
Goodwill impairment (6)		(42,039	)				—					(125,376	)				—
Gain on sale of assets (7)		—					—					3,420					—
Restructuring cost (8)		(2,905	)				(1,643	)				(3,157	)				(3,898	)
Amortization expense		(1,407	)				(1,413	)				(4,461	)				(4,048	)
Depreciation expense		(464	)				(745	)				(1,466	)				(2,432	)
Interest income, net		106					225					469					830
(Loss) income before income tax benefit (expense)		(49,641	)				4,487					(130,741	)				18,327
Income tax benefit (expense)		5,589					(1,937	)				12,267					(7,765	)
Net (loss) income	$	(44,052	)			$	2,550				$	(118,474	)			$	10,562
(1) Segment Adjusted EBITDA Margin is calculated by dividing segment Adjusted EBITDA by segment revenue.
(2) Unallocated items are generally comprised of unallocated corporate administrative costs, including management and board compensation, corporate support function costs and other general corporate costs that are not allocated to segments.
(3) Amortized ERP system costs represent the amortization of capitalized technology transformation costs related to newly implemented Enterprise Resource Planning (ERP) system, which was recorded within Selling, General, and Administrative expenses on the Consolidated Statement of Operations.
(4) Technology transformation costs represent costs included in net income related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized.
(5) Acquisition costs primarily represent costs included in net income related to the Company’s business acquisitions. These costs include transaction bonuses, cash retention bonus accruals, and fees paid to the Company’s broker, legal counsel, and other professional services firms.
(6) Goodwill impairment charges recognized during the three and nine months ended February 22, 2025 were related to the On-Demand Talent segment and Consulting segment, and for the nine-month period only, Europe and Asia Pacific segment.
(7) Gain on sale of assets was related to the Company’s sale of its Irvine office building, which was completed on August 15, 2024.
(8) The Company authorized the 2025 Restructuring Plan in December 2024. The 2023 U.S. restructuring plan was substantially completed during fiscal 2024.

The following table discloses the Company’s average bill rate by segment for the last five quarters:

	February 22, 2025		November 23, 2024		August 24, 2024		May 25, 2024		February 24, 2024
*Average bill rate (1):*	(Unaudited)
Consolidated bill rate	$	123	$	123	$	118	$	120	$	119
On-Demand Talent	$	140	$	140	$	140	$	142	$	143
Consulting	$	159	$	154	$	145	$	142	$	141
Europe & Asia Pacific	$	59	$	59	$	56	$	58	$	58
Outsourced Services	$	137	$	140	$	139	$	142	$	139
(1) Average bill rates are calculated by dividing total revenue by the total number of billable hours.

RESOURCES CONNECTION, INC. SELECTED BALANCE SHEET, CASH FLOW AND OTHER INFORMATION (In thousands, except consultant headcount and average rates)

	February 22,			May 25,
SELECTED BALANCE SHEET INFORMATION:		2025			2024
	(Unaudited)
Cash and cash equivalents	$	72,495		$	108,892
Trade accounts receivable, net of allowance for credit losses	$	101,137		$	108,515
Total assets	$	375,625		$	510,914
Current liabilities	$	74,213		$	72,433
Long-term debt	$	—		$	—
Total liabilities	$	97,799		$	92,151
Total stockholders’ equity	$	277,826		$	418,763

	Nine Months Ended
	February 22,			February 24,
SELECTED CASH FLOW INFORMATION:		2025			2024
	(Unaudited)			(Unaudited)
Cash flow — operating activities	$	2,149		$	18,754
Cash flow — investing activities	$	(13,083	)	$	(8,432	)
Cash flow — financing activities	$	(23,114	)	$	(12,977	)

	Three Months Ended
	February 22,			February 24,
SELECTED OTHER INFORMATION:		2025			2024
	(Unaudited)			(Unaudited)
Consultant headcount, end of period		2,514			2,765
Average bill rate (1)	$	123		$	119
Average pay rate (1)	$	58		$	58
Common shares outstanding, end of period		33,069			33,808

(1) Rates represent the weighted average bill rates and pay rates across the countries in which we operate. Such weighted average rates are impacted by the mix of our business across the geographies as well as fluctuations in currency rates. Constant currency average bill and pay rates using the same exchange rates in the third quarter of fiscal 2024 were $124 and $59, respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250402366545/en/

Analyst Contact:

Jennifer Ryu

Chief Financial Officer

(US+) 1-714-430-6500

[email protected]

Media Contact:

Pat Burek

Financial Profiles

(US+) 1-310-622-8244

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Professional Services Business Other Professional Services Insurance Human Resources Consulting Accounting

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