Chinese state media warns about Nvidia chips as US tariff truce deadline looms
China could choose not to buy US tech firm Nvidia's H20 chips, said the account, Yuyuan Tantian, which is affiliated with state broadcaster CCTV, as it claimed that the artificial intelligence (AI) chips could have 'backdoors' that impact their function and security.
'When a type of chip is neither environmentally friendly, nor advanced, nor safe, as consumers, we certainly have the option not to buy it,' said the commentary, which came after China's cybersecurity administration also raised concerns over backdoor access in those chips.
Nvidia has repeatedly denied that its products have backdoors.
China's access to American technology, especially high-end chips that can be used in the development of artificial intelligence, has become a key issue in trade and tech frictions between the rival economies – as both vie for tech dominance.
A trade truce between the two countries that reduced triple-digit tariffs is set to expire on August 12, though officials have signaled an extension could come into effect following talks in Sweden last month.
Nvidia last month said it would resume sales of the H20 chip to China after the White House changed course on export controls it imposed in April as its trade frictions with China deepened. US Treasury Secretary Scott Bessent told Bloomberg in an interview at the time that the Nvidia export controls have been a 'negotiating chip' in the larger US-China trade talks.
Nvidia and another tech firm Advanced Micro Devices (AMD) have agreed to pay the US government 15% of their revenues from semiconductor sales to China in exchange for export licenses, the Financial Times reported Sunday.
The unprecedented quid pro quo arrangement is part of a deal with the Trump administration to obtain export licenses to sell Nvidia's H20 chips and AMD's MI308 chips in China, the FT reported, citing people familiar with the situation, including a US official. The New York Times and Reuters also later reported the 15% commission deal, citing sources.
Nvidia released the H20 chip last year to maintain access to the Chinese market following strict export controls put in place under the Biden administration that stopped the export of chips with greater processing power.
Nvidia's announcement last month that it would be able to export the H20 chip to China raised concerns among some US lawmakers, who support tight controls to prevent China from using American technology to advance its military and AI systems.
China's mounting concern about the security of the chips comes after the White House last month recommended implementing export controls that would verify the location of advanced artificial intelligence chips. China's cyberspace regulator late last month summoned Nvidia over security concerns about 'tracking and positioning' and 'remote shutdown' capabilities.
In a blog post published last week, Nvidia reiterated that its chips did not have back doors, spyware or kill switches and said that 'embedding backdoors and kill switches into chips would be a gift to hackers and hostile actors.'
China's security concerns appear to mirror those that the US has in the past expressed about Chinese technology, most prominently the first Trump administration's campaign against the growing foothold of Chinese tech giant Huawei in global communications infrastructure.
Chinese leaders have also pushed for the country's tech firms to become self-sufficient and reduce reliance on American-made chips to achieve Beijing's AI and tech ambitions, and experts have said that controls on chips like the H20 could push China to speed up its own innovation.
But the H20 is not the only technology that reports suggest is entangled with negotiations between the two sides.
According to another report from the FT also published Sunday, China wants the US to ease export controls on a critical component for artificial intelligence chips as part of a trade deal ahead of a possible summit between President Donald Trump and Chinese leader Xi Jinping.
Chinese officials have told experts in Washington that Beijing wants the Trump administration to relax export restrictions on high-bandwidth memory (HBM) chips, the FT reported, citing several people familiar with the matter.
The US government imposed export controls on the sale of such memory chips to China last year.
CNN's Nectar Gan contributed to this report.
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- Business Wire
Lumentum Announces Fourth Quarter and Full Fiscal Year 2025 Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Lumentum Holdings Inc. ('Lumentum' or the 'Company') today reported results for its fourth quarter and full fiscal year ended June 28, 2025. 'In our fiscal fourth quarter, we executed exceptionally well in meeting robust demand across our portfolio of cloud products supporting AI data centers,' said Michael Hurlston, Lumentum President and CEO. 'This solid performance, combined with sustained customer demand, drove our Q4 revenue above the high end of the upwardly revised guidance we provided in early June. The outperformance was broad-based across our cloud-focused business, with particular strength in components, specifically EML chips, pump lasers, and narrow linewidth laser assemblies for data center interconnect, as well as 800G modules. Looking ahead, we expect continued strong demand for our AI data center and long-haul solutions, giving us confidence in surpassing $600 million in quarterly revenue by June 2026 or earlier.' Fiscal Fourth Quarter Highlights: Net revenue for the fourth quarter of fiscal year 2025 was $480.7 million, with GAAP net income of $213.3 million, or $2.96 per diluted share. Net revenue for the third quarter of fiscal year 2025 was $425.2 million, with GAAP net loss of $44.1 million, or $0.64 per diluted share. Net revenue for the fourth quarter of fiscal year 2024 was $308.3 million, with GAAP net loss of $252.5 million, or $3.72 per diluted share. Non-GAAP net income for the fourth quarter of fiscal year 2025 was $63.3 million, or $0.88 per diluted share. Non-GAAP net income for the third quarter of fiscal year 2025 was $40.9 million, or $0.57 per diluted share. Non-GAAP net loss for the fourth quarter of fiscal year 2024 was $8.9 million, or $0.13 per diluted share. (1) The Company held $877.1 million in total cash, cash equivalents, and short-term investments at the end of the fourth quarter of fiscal year 2025, an increase of $10.4 million from the third quarter of fiscal year 2025. Full Fiscal Year 2025 Highlights: Net revenue for fiscal year 2025 was $1,645.0 million, with GAAP net income of $25.9 million, or $0.37 per diluted share. Net revenue for fiscal year 2024 was $1,359.2 million, with GAAP net loss of $546.5 million, or $8.12 per diluted share. Non-GAAP net income for fiscal year 2025 was $146.4 million, or $2.06 per diluted share. Non-GAAP net income for fiscal year 2024 was $29.8 million, or $0.44 per diluted share. (1) Financial Overview – Fiscal Fourth Quarter Ended June 28, 2025 Net Revenue by Segment ($ in millions) Q4 % of Q3 Q4 Change Industrial Tech 56.6 11.8 % 60.0 53.6 (5.7)% 5.6% Total $ 480.7 100.0 % $ 425.2 $ 308.3 13.1% 55.9% Expand Financial Overview – Fiscal Year Ended June 28, 2025 GAAP Results ($ in millions) FY 2025 FY 2024 Change Y/Y Net revenue $ 1,645.0 $ 1,359.2 21.0% GAAP Gross margin 28.0 % 18.5 % 950bps GAAP Operating loss (10.9 )% (31.9 )% 2,100bps Expand Non-GAAP Results ($ in millions) FY 2025 FY 2024 (1) Change Y/Y Net revenue $ 1,645.0 $ 1,359.2 21.0% Non-GAAP Gross margin 34.7 % 30.2 % 450bps Non-GAAP Operating margin (loss) 9.7 % (0.6 )% 1,030bps Expand Net Revenue by Segment ($ in millions) FY 2025 FY 2024 Change Y/Y Cloud & Networking $ 1,410.8 $ 1,084.9 30.0% Industrial Tech 234.2 274.3 (14.6)% Total $ 1,645.0 $ 1,359.2 21.0% Expand (1) During the first quarter of fiscal year 2025, the Company refined its methodology to report non-GAAP financial measures. The change does not impact the Company's financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation. Expand The tables above provide comparisons of quarterly and annual results to prior periods, including sequential quarterly and year-over-year changes. A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled 'Use of Non-GAAP Financial Measures.' Business Outlook Lumentum expects the following for the first quarter of fiscal year 2026: Net revenue in the range of $510 million to $540 million Non-GAAP operating margin of 16.0% - 17.5% Non-GAAP diluted earnings per share of $0.95 to $1.10 We have not provided reconciliations from GAAP to non-GAAP financial measures or the equivalent GAAP measure for non-GAAP financial measures in our outlook, as they cannot be provided without unreasonable effort. A large portion of non-GAAP adjustments, such as restructuring charges, stock-based compensation, non-GAAP income tax reconciling adjustments, acquisition related costs, and other costs and contingencies unrelated to current and future operations are by their nature highly volatile and we have low visibility as to the range that may be incurred in the future. Conference Call Lumentum will host a conference call today, August 12, 2025, at 2:00 pm PT / 5:00 pm ET to discuss its fiscal fourth quarter and full year results. A live webcast of the call will be available in the Investors section of the Lumentum website at To listen to the live conference call, dial (833) 470-1428 or (404) 975-4839 and reference the conference ID 554196. Supporting materials outlining the Company's latest financial results will be posted on under the 'Events and Presentations' section concurrently with this earnings press release. Lumentum has used, and intends to continue to use, its Investor Relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. This press release is also being furnished as an exhibit to a Current Report on Form 8-K filed with the Securities and Exchange Commission and will be available at About Lumentum Lumentum (NASDAQ: LITE) is a market-leading designer and manufacturer of innovative optical and photonic products enabling optical networking and laser applications worldwide. Lumentum optical components and subsystems are part of virtually every type of telecom, enterprise, and data center network. Lumentum lasers enable advanced manufacturing techniques and diverse applications including next-generation imaging and sensing capabilities. Lumentum is headquartered in San Jose, California with R&D, manufacturing, and sales offices worldwide. For more information, visit and follow Lumentum on LinkedIn, X (formerly known as Twitter), Facebook, Instagram and YouTube. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These include statements regarding: our belief and expectations with respect to our markets, including the cloud end market and the broader networking market, demand for our products, quarterly revenue, our ability to deliver at scale, and our guidance with respect to future net revenue, non-GAAP diluted earnings per share, and non-GAAP operating margins, and related assumptions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Among the factors that could cause actual results to differ from those contemplated are: (a) uncertainty and volatility in the global markets, including uncertainty and volatility in the macroeconomic environment, volatility and uncertainty with respect to economic growth, inflationary pressures, changes in the political or economic environment, such as geopolitical conflicts, war, international trade regulation and restrictions (including tariffs, duties and export controls to be implemented by the U.S. and other countries), including for certain rare earth minerals, and the effect of such market disruptions on demand for our products, technology spending by our customers, our costs and expenses and our ability to obtain components for our products; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) decline of average selling prices across our businesses or increase in costs, either of which will also decrease our margins; (d) effects of seasonality; (e) the ability of our suppliers and contract manufacturers to meet production, quality, and delivery requirements for our forecasted demand; (f) changes in customer demand, including due to changes in inventory practices and end-customer demand; (g) our ability to attract and retain new customers, particularly in the cloud photonics and imaging and sensing markets; (h) the risk that our markets will not grow or develop as expected or that our strategies and ability to compete in those markets are not successful, (i) the risk that Lumentum's financing or operating strategies will not be successful; (j) risks related to our restructurings initiatives and changes to our operations; (k) failure to successfully integrate Cloud Light or other acquisitions into our business or that we will not achieve the expected benefits. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2025 filed with the Securities and Exchange Commission, and in the Company's other filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended June 28, 2025, which will be filed with the Securities and Exchange Commission, available at under the caption 'Risk Factors' and elsewhere. The forward-looking statements contained in this presentation are made as of the date hereof and the Company assumes no obligation to update such statements, except as required by applicable law. Category: Financial The following financial tables are presented in accordance with GAAP, unless otherwise specified. LUMENTUM HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except per share data) (unaudited) June 29, 2024 ASSETS Current assets: Cash and cash equivalents $ 520.7 $ 436.7 Short-term investments 356.4 450.3 Accounts receivable, net 250.0 194.7 Inventories 470.1 398.4 Prepayments and other current assets 120.1 110.0 Total current assets 1,717.3 1,590.1 Property, plant and equipment, net 726.4 572.5 Operating lease right-of-use assets, net 27.9 72.8 Goodwill 1,060.9 1,055.8 Other intangible assets, net 465.1 617.5 Deferred tax asset 210.3 10.7 Other non-current assets 10.8 12.5 Total assets $ 4,218.7 $ 3,931.9 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 225.2 $ 126.3 Accrued payroll and related expenses 57.9 36.1 Accrued expenses 34.6 52.4 Current portion of long-term debt 10.6 — Operating lease liabilities, current 11.4 13.4 Other current liabilities 53.1 41.1 Total current liabilities 392.8 269.3 Long-term debt 2,562.6 2,503.2 Operating lease liabilities, non-current 23.6 43.0 Deferred tax liability 7.2 55.7 Other non-current liabilities 97.8 103.4 Total liabilities 3,084.0 2,974.6 Stockholders' equity: Common stock, $0.001 par value, 990 authorized shares; 69.8 and 67.9 shares issued and outstanding as of June 28, 2025 and June 29, 2024, respectively 0.1 0.1 Additional paid-in capital 1,986.8 1,835.0 Accumulated deficit (861.2 ) (887.1 ) Accumulated other comprehensive income 9.0 9.3 Total stockholders' equity 1,134.7 957.3 Total liabilities and stockholders' equity $ 4,218.7 $ 3,931.9 Expand Use of Non-GAAP Financial Measures In this press release, Lumentum provides investors with certain non-GAAP financial measures: gross profit, gross margin, research and development expense, selling, general and administrative expense, operating margin (loss), income (loss) from operations, interest and other income (expense), net, income before income taxes, provision for income taxes, net income (loss), and net income (loss) per share on a non-GAAP basis, as well as the non-GAAP financial measures of EBITDA and Adjusted EBITDA. Lumentum believes this non-GAAP financial information provides additional insight into the Company's on-going business operations and results, as well as cash generation, and has therefore chosen to provide this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company's on-going operations and enable more meaningful period to period comparisons. In addition, the Company believes that providing certain of these measures allows investors to better understand the Company's operating performance and cash flows and, importantly, to evaluate the methodology and information used by management to monitor, manage, evaluate and measure the Company's business, results of operations, and cash flows. However, investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future. Moreover, the non-GAAP financial measures we present may be different from non-GAAP financial measures used by other companies or may not be comparable to similarly titled measurements reported by other companies, limiting their usefulness for comparison purposes. We do not consider non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial measures, and the non-GAAP financial measures used in this press release should not be considered in isolation from measures of financial performance prepared in accordance with GAAP. Our non-GAAP financial measures used in this press release exclude (i) stock-based compensation, (ii) acquisition related costs, (iii) integration related costs, (iv) amortization of acquired intangibles, (v) amortization of acquired inventory fair value adjustments, (vi) restructuring and related charges, (vii) intangible assets write-off, (viii) gain on sale of facility, (ix) foreign exchange losses (gains), net, (x) non-cash interest expense on convertible notes, (xi) non-GAAP income tax reconciling adjustments, and (xii) other (gains) charges related to non-recurring activities. We utilize a long-term projected non-GAAP tax rate to compute our non-GAAP income tax provision. The long-term projected non-GAAP tax rate is based on a multi-year projection of our estimated annual GAAP income tax forecast, adjusted to account for the tax effect of non-GAAP pretax adjustments as well as the effects of significant non-recurring and period specific tax items. Our non-GAAP tax provision for fiscal year 2025 is 16.5%. The difference between our GAAP income tax provision and our non-GAAP income tax provision is presented as non-GAAP income tax reconciling adjustments. A quantitative reconciliation between GAAP and non-GAAP financial data with respect to historical periods is included in the supplemental financial table attached to this press release. June 28, 2025 March 29, 2025 June 29, 2024 (1) June 28, 2025 June 29, 2024 (1) Gross profit on GAAP basis $ 159.9 $ 122.5 $ 51.3 $ 459.9 $ 251.5 Stock-based compensation 8.8 9.2 8.2 36.9 31.7 Integration related costs 0.6 — 1.9 2.9 18.1 Amortization of acquired intangibles 19.3 19.0 22.1 82.2 83.9 Amortization of inventory fair value adjustments — — — — 8.3 Other charges, net (5) (7.0 ) (1.2 ) 2.1 (10.4 ) 16.6 Gross profit on non-GAAP basis $ 181.6 $ 149.5 $ 85.6 $ 571.5 $ 410.1 Gross margin on non-GAAP basis 37.8 % 35.2 % 27.8 % 34.7 % 30.2 % Research and development on GAAP basis $ 79.5 $ 75.9 $ 73.2 $ 303.9 $ 302.2 Stock-based compensation (11.4 ) (11.2 ) (8.0 ) (43.3 ) (38.1 ) Integration related costs — (0.3 ) — (0.3 ) (0.1 ) Amortization of acquired intangibles (0.4 ) (0.4 ) (0.4 ) (1.6 ) (1.5 ) Intangible assets write-off (0.1 ) (0.7 ) — (2.7 ) — Acquisition related costs — — — — (0.4 ) Other charges, net — — 0.1 — (1.1 ) Research and development on non-GAAP basis $ 67.6 $ 63.3 $ 64.9 $ 256.0 $ 261.0 Selling, general and administrative on GAAP basis $ 83.6 $ 112.0 $ 74.9 $ 348.2 $ 310.7 Stock-based compensation (2) (19.8 ) (42.4 ) (14.3 ) (97.0 ) (59.0 ) Acquisition related (costs) reversal (0.7 ) (0.5 ) 0.2 (1.2 ) (12.9 ) Integration related costs (0.7 ) (1.1 ) (2.2 ) (6.0 ) (8.8 ) Amortization of acquired intangibles (14.9 ) (15.0 ) (19.4 ) (65.9 ) (65.2 ) Other charges, net (5) (5.8 ) (12.9 ) (2.7 ) (22.7 ) (8.1 ) Selling, general and administrative on non-GAAP basis $ 41.7 $ 40.1 $ 36.5 $ 155.4 $ 156.7 Loss from operations on GAAP basis $ (8.4 ) $ (37.7 ) $ (133.4 ) $ (180.1 ) $ (434.0 ) Stock-based compensation (2) 40.0 62.8 30.5 177.2 128.8 Acquisition related costs (reversal) 0.7 0.5 (0.2 ) 1.2 13.3 Integration related costs 1.3 1.4 4.1 9.2 27.0 Amortization of acquired intangibles 34.6 34.4 41.9 149.7 150.6 Amortization of inventory fair value adjustments — — — — 8.3 Restructuring and related charges (3) 5.2 7.2 36.6 22.8 72.6 Intangible assets write-off 0.1 0.7 — 2.7 — Gain on sale of facility (4) — (34.9 ) — (34.9 ) — Other charges, net (5) (1.2 ) 11.7 4.7 12.3 25.8 Income (loss) from operations on non-GAAP basis $ 72.3 $ 46.1 $ (15.8 ) $ 160.1 $ (7.6 ) Operating margin (loss) on non-GAAP basis 15.0 % 10.8 % (5.1 )% 9.7 % (0.6 )% Interest and other income, net on GAAP basis $ (3.0 ) $ (1.5 ) $ 5.9 $ 8.0 $ 28.3 Foreign exchange losses (gains), net 5.8 3.6 (1.2 ) 4.2 (0.7 ) Non-cash interest expense on convertible notes and other expenses 0.7 0.8 0.7 3.0 14.9 Interest and other income, net on non-GAAP basis $ 3.5 $ 2.9 $ 5.4 $ 15.2 $ 42.5 Loss before income taxes on GAAP basis $ (11.4 ) $ (39.2 ) $ (127.5 ) $ (172.1 ) $ (405.7 ) Stock-based compensation (2) 40.0 62.8 30.5 177.2 128.8 Acquisition related costs (reversal) 0.7 0.5 (0.2 ) 1.2 13.3 Integration related costs 1.3 1.4 4.1 9.2 27.0 Amortization of acquired intangibles 34.6 34.4 41.9 149.7 150.6 Amortization of inventory fair value adjustments — — — — 8.3 Restructuring and related charges (3) 5.2 7.2 36.6 22.8 72.6 Gain on sale of facility (4) — (34.9 ) — (34.9 ) — Intangible assets write-off 0.1 0.7 — 2.7 — Foreign exchange losses (gains), net 5.8 3.6 (1.2 ) 4.2 (0.7 ) Non-cash interest expense on convertible notes and other expenses 0.7 0.8 0.7 3.0 14.9 Other charges, net (5) (1.2 ) 11.7 4.7 12.3 25.8 Income (loss) before income taxes on non-GAAP basis $ 75.8 $ 49.0 $ (10.4 ) $ 175.3 $ 34.9 Income tax provision (benefit) on GAAP basis $ (224.7 ) $ 4.9 $ 125.0 $ (198.0 ) $ 140.8 Non-GAAP income tax reconciling adjustments 237.2 3.2 (126.5 ) 226.9 (135.7 ) Income tax provision (benefit) on non-GAAP basis $ 12.5 $ 8.1 $ (1.5 ) $ 28.9 $ 5.1 Net income (loss) on GAAP basis $ 213.3 $ (44.1 ) $ (252.5 ) $ 25.9 $ (546.5 ) Stock-based compensation (2) 40.0 62.8 30.5 177.2 128.8 Acquisition related costs (reversal) 0.7 0.5 (0.2 ) 1.2 13.3 Integration related costs 1.3 1.4 4.1 9.2 27.0 Amortization of acquired intangibles 34.6 34.4 41.9 149.7 150.6 Amortization of inventory fair value adjustments — — — — 8.3 Restructuring and related charges (3) 5.2 7.2 36.6 22.8 72.6 Intangible assets write-off 0.1 0.7 — 2.7 — Gain on sale of facility (4) — (34.9 ) — (34.9 ) — Foreign exchange losses (gains), net 5.8 3.6 (1.2 ) 4.2 (0.7 ) Non-cash interest expense on convertible notes and other expenses 0.7 0.8 0.7 3.0 14.9 Other charges, net (5) (1.2 ) 11.7 4.7 12.3 25.8 Non-GAAP income tax reconciling adjustments (237.2 ) (3.2 ) 126.5 (226.9 ) 135.7 Net income (loss) on non-GAAP basis $ 63.3 $ 40.9 $ (8.9 ) $ 146.4 $ 29.8 Net income (loss) per share on non-GAAP basis $ 0.88 $ 0.57 $ (0.13 ) $ 2.06 $ 0.44 Shares used in per share calculation - diluted on GAAP basis 72.0 69.3 67.8 69.6 67.3 Non-GAAP adjustment (6) — 2.9 — 1.6 0.4 Shares used in per share calculation - diluted on non-GAAP basis 72.0 72.2 67.8 71.2 67.7 Expand (1) During the first quarter of fiscal year 2025, the Company refined its methodology to report non-GAAP financial measures. The change does not impact the Company's financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation. (2) Stock-based compensation for the twelve months ended June 28, 2025 includes $28.2 million of stock-based compensation expense resulting from equity award modifications for our former President and Chief Executive Officer ('CEO'), which include RSUs and PSUs that were immediately expensed as of the separation date. (3) Restructuring charges for the three months ended June 28, 2025 primarily relate to $3.0 million of employee severance, $2.2 million primarily related to write-off of right-of-use assets as well as charges for other contractual commitments associated with site closures. Restructuring charges for the twelve months ended June 28, 2025 include $14.6 million of assets written off, including property, plant and equipment, right-of-use assets, prepayments and other current assets as well as charges for other contractual commitments associated with site closures, and $4.3 million of employee severance primarily due to efforts to consolidate our sites and focus on other market opportunities, including cloud and AI markets. In addition, we also recorded $3.0 million of charges related to the discontinuation of our in-house development of coherent Digital Signal Processors ('DSPs') and Radio Frequency Integrated Circuits ('RFICs'). (4) Gain on sale of facility for the twelve months ended June 28, 2025 represents a gain for net assets sold in an entity in Shenzhen, China, which consist primarily of building, building improvements and land rights. (5) Other charges, net for the three months ended June 28, 2025 mainly includes a credit of $5.2 million associated with indirect taxes reserve released due to the settlement of an audit, and a credit of $1.8 million related to units sold that were previously written down, offset by $5.7 million of legal and professional fees primarily related to non-ordinary course legal matters. Other charges, net for the twelve months ended June 28, 2025 mainly includes $12.2 million of legal and professional fees primarily related to non-ordinary course legal matters, $6.2 million of CEO transition costs, and $3.2 million of bad debt reserve related to the remaining unpaid balances due from Huawei associated with the trade restrictions, offset by a credit of $5.2 million associated with indirect taxes reserve released due to the settlement of an audit and a $5.0 million credit related to units sold that were previously written down. (6) The adjustment represents the dilutive impact of equity-based compensation awards in accordance with the treasury stock method and dilutive shares from our convertible debt instruments under the if-converted method. Expand Three Months Ended Twelve Months Ended June 28, 2025 March 29, 2025 June 29, 2024 (1) June 28, 2025 June 29, 2024 (1) GAAP net income (loss) $ 213.3 $ (44.1 ) $ (252.5 ) $ 25.9 $ (546.5 ) Interest and other income, net 3.0 1.5 (5.9 ) (8.0 ) (28.3 ) Income tax provision (benefit) (224.7 ) 4.9 125.0 (198.0 ) 140.8 Depreciation 26.4 25.0 28.2 104.3 110.6 Amortization of acquired intangibles 34.6 34.4 41.9 149.7 150.6 EBITDA 52.6 21.7 (63.3 ) 73.9 (172.8 ) Amortization of inventory fair value adjustments — — — — 8.3 Restructuring and related charges 5.2 7.2 36.6 22.8 72.6 Stock-based compensation 40.0 62.8 30.5 177.2 128.8 Acquisition related costs 0.7 0.5 (0.2 ) 1.2 13.3 Integration related costs 1.3 1.4 4.1 9.2 27.0 Intangible assets write-off 0.1 0.7 — 2.7 — Gain on sale of facility — (34.9 ) — (34.9 ) — Other charges, net (1.2 ) 11.6 3.2 12.1 17.9 Adjusted EBITDA $ 98.7 $ 71.0 $ 10.9 $ 264.2 $ 95.1 Expand (1) During the first quarter of fiscal year 2025, the Company refined its methodology to report non-GAAP financial measures. The change does not impact the Company's financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation. Expand
New York Times
2 minutes ago
- New York Times
The U.S. May Be Coming Around to Balcony Solar
Across Germany, more than a million people had installed solar panels on their balconies as of last month. But those are just the officially registered systems. The actual figures could be three times as high, according to government estimates. Though each installation is small, the aggregate electricity generated from these plug-in solar panels is helping Germany reach its renewable energy targets. Is the U.S. next? It's complicated. Plug-in solar, also known as balcony solar, refers to small-scale solar systems that can be installed without an electrician or without permission from a local utility. It is certainly closer to taking off in the U.S. than it was six months ago. The technology's backers hope more hurdles will be cleared before the year is out. This is happening largely thanks to a small-but-committed assortment of policymakers and solar power supporters who are working to make it more accessible. There are two main barriers. First, there are local utility rules, many of which limit what residents can install without permission. And some would-be customers are waiting for the release of a key safety standard from an independent testing company. Victoria Augustine, an environmental activist and resident of Queens, in New York City, was one of the first buyers of a Flex 200 plug-in panel system released earlier this summer by Bright Saver, a nonprofit group based in California that promotes balcony solar. On Aug. 1, she zip-tied the panel onto a wrought iron fence on her porch. She plugged it into an outlet, making sure it wasn't sharing the circuit with any other appliances. The whole process took less than an hour, including a trip to the hardware store for extra zip ties. There was no visit from an electrician or approvals from her local utility. A Bright Saver employee helped her set up a phone app on to track the system's output. And that was it: The panels were generating electricity, albeit just a little. When the sun is shining, the 200-watt system will be able to offset roughly enough electricity to power a small appliance. The Flex 200 could save Augustine an estimated $37 to $50 per year in electricity costs. Bright Saver, a nonprofit group, began selling the Flex 200 for $399 this summer, and the first run of a few dozen systems sold out within a week, said Cora Stryker, its co-founder. The Flex 200 maxes out at about a quarter of the electricity that balcony systems in Germany can produce. That's by design: The founders wanted to release a product that could be used anywhere in the United States without needing permission from the authorities. Bright Saver's product is not designed to send electricity back to the grid, and it is not large enough to trigger local utility rules, said Kevin Chou, the group's executive director. 'I think that what we're trying to do is demonstrate the demand,' said Stryker, who added that the organization was working with state lawmakers to allow more powerful plug-in solar systems. 'Hopefully, a year or two from now, we won't be talking about these 200-watt systems,' she said. Utah legislators eliminated one of their state's biggest hurdles for plug-in solar this year when they passed a law exempting certain home solar systems from requirements that they enter into interconnection agreements with local utilities to send small amounts of electricity back to the grid. Some larger plug-in systems are already being sold in the state. EcoFlow, which has a presence in Germany, has begun selling its STREAM systems to Utah residents. Including panels, they retail for about $2,000. The company declined to share specific sales figures, but Ryan Oliver, its spokesman, said interest has been 'high' since state lawmakers passed the bill. 'We saw that as an invite to bring our product to the Utah market, and we're hoping to see some of these same kinds of moves in other states,' Oliver said. But Raymond Ward, the Republican state legislator who introduced the plug-in solar bill, still hasn't added panels to his own home. That's because his own bill says plug-in systems must be certified by a nationally-recognized safety testing agency. Right now, Ward says, companies selling panels are operating in 'a little bit of a gray area.' The 'gray area' Ward referenced has to do with a safety standard from the independent testing company Underwriters Laboratories. 'UL certification' appears on household items like hair dryers, lightbulbs and refrigerators. Underwriters Laboratories has not issued a specific safety standard for plug-in solar systems. Individual solar components like inverters are already certified under an existing standard. Some safety advocates argue that a whole-product standard, not just one that applies to its components, is necessary before plug-in solar systems hit the market. Representative Ward said he thought people outside of Utah might start buying and installing plug-in solar systems once the UL standard was published, regardless of state regulations. 'That's just a guess, but that's what happened in Europe,' he said. He said he wanted to give his wife a plug-in system for Christmas, and that he hoped the products would be out of the gray area by then. Conservation Trump cracks down on bird deaths, but only from wind turbines Bald eagles must be protected to the fullest extent of the law from dangerous wind turbines, President Trump's interior secretary declared this week. But four months ago, President Trump called for gutting the very law that applies, the Bald and Golden Eagle Protection Act, calling it a burden on oil and gas producers. Trump administration officials insisted there was no conflict between the two positions and said the president was consistently enforcing laws for all forms of energy development. Conservationists said the Trump administration's embrace of America's iconic bird was just a pretext for attacking the wind industry, which the president has publicly seethed about ever since he lost a legal battle to stop a wind farm from being built in view of one of his Scottish golf courses. — Lisa Friedman Read more. Climate policy A tug of war over air-conditioning in France The culture wars have come for air-conditioning, at least in France. In July, as a heat wave broiled much of Europe, feelings about air-conditioning suddenly became a political litmus test. Marine Le Pen, the far-right leader in France, declared that she would deploy a 'major air-conditioning equipment plan' around the country if her nationalist party eventually came to power. Marine Tondelier, the head of France's Green party, scoffed at Le Pen's idea and, instead, suggested solutions to warming temperatures that included 'greening' cities and making buildings more energy efficient. In France, only an estimated 20 to 25 percent of households are equipped with air-conditioning, according to the country's Agency for Ecological Transition. — Aurelien Breeden and Josh Holder Read more. Reuters investigated the airline industry's claims about the nascent sustainable aviation fuel projects it has announced in recent years. 'While airlines have announced 165 SAF projects over the past 12 years,' they report, 'only 36 have materialized.' Higher temperatures have caused tropical bird populations to decline by up to 38 percent since the 1950s, according to a study highlighted by Carbon Brief. In 2020, California passed a law mandating that homeowners in some wildfire-prone areas take extra precautions to protect their homes. But Bloomberg reports that the rules still have not been enacted. Thanks for being a subscriber. Read past editions of the newsletter here. If you're enjoying what you're reading, please consider recommending it to others. They can sign up here. Browse all of our subscriber-only newsletters here. And follow The New York Times on Instagram, Threads, Facebook and TikTok at @nytimes. Reach us at climateforward@ We read every message, and reply to many!
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2 minutes ago
- Fox News
Karoline Leavitt: This should be a 'winning issue' for all Americans
White House press secretary Karoline Leavitt responds to criticism from Democrats on President Donald Trump deploying the National Guard in Washington, D.C. after podcast host Benny Johnson shares experiences living in the capital.
