Pentagon prepares to expand in-theater data processing pilot
As combatant commands around the globe integrate more sensors and uncrewed systems, there's a growing need for computing and storage capabilities. The Joint Operational Edge, or JOE, cloud initiative aims to provide commanders with the computing capabilities they need to crunch the swaths of data those sensors are gathering and identify key intelligence insights.
In just over a year, the department has established JOE nodes in Japan, Hawaii and Guam, as well as several sites in Europe and Africa. Rob Vietmeyer, chief software officer for the DOD CIO, said the program is still in its infancy, but the Pentagon hopes to quickly expand the most needed capabilities in the coming years.
'We're working with the intelligence community, Joint Staff and combatant commands to build out these capabilities with our commercial partners,' he said during a panel at the Potomac Officers Club's annual Research and Development Summit in McLean, Virginia.
Vietmeyer told Defense News on the sidelines of the conference the department's current focus is on ensuring the capabilities it delivers through JOE are what combatant commands need and can use today. The vision is for JOE to be flexible and grow as needed based on demand. Over the next few years, the department plans to expand the number of nodes from the handful it operates today to around 20.
'We don't want to build out more infrastructure than what we can take advantage of,' he said. 'We're trying to keep this as an agile program and continue to build out based on where we're adding real value.'
Part of JOE's initial work has been to get these capabilities into the hands of users in the field — often referenced as 'the edge' in military parlance — so they can get a feel for how it works and could potentially benefit operations, Vietmeyer said.
Two areas where the program is seeing particular demand from users in the field are AI and graphics processing unit, or GPU, tools. A GPU is a circuit that processes images and other graphics.
Along with building out the necessary infrastructure, the JOE team — which includes partners in the Defense Information Systems Agency and U.S. Special Operations Command — is developing policies and working with vendors to craft procurement strategies for the effort. While the project is currently funded as an enterprise effort, Vietmeyer said it will eventually transition, at least in part, to a fee-for-service approach.
Supply chain security and risk management are key issues for the Defense Department as it builds out its edge computing architecture.
Leigh Method, currently performing the duties of deputy assistant secretary of defense for sustainment, said DOD has several initiatives to mitigate risk to its supply chain. Speaking alongside Vietmeyer at the R&D Summit, she highlighted the creation of a Supply Chain Risk Mitigation Integration Center.
Currently, the organization has just one employee, but the department intends for the center to grow over the next few years and look across the department to better understand and prioritize risk and develop strategies for reducing it.
Method also pointed to an initiative called Vendor Threat Mitigation, which aims to give combatant commanders visibility and market analysis into the companies they work with to access data processing tools.
She said the goal is to ensure DOD isn't inadvertently 'contracting with the enemy' and to give commanders the authorities they need to protect logistics capabilities.
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Business Wire
11 hours ago
- Business Wire
LICT CORPORATION REPORTS Solid Second Quarter 2025
RYE, N.Y.--(BUSINESS WIRE)--LICT Corporation ('LICT' or the 'Company'; OTC Pink ®: LICT), an integrated provider of broadband and voice services, today announced its financial results for the quarter ended June 30, 2025, and also welcomed Joe Cecin as Chief Operating Officer. Joe is an engineering graduate of the U.S. Military Academy at West Point, has earned an MBA from Stanford University and brings over 30 years of telecommunications industry experience spanning operations, infrastructure development, and leadership in private equity-backed businesses. Shareholder Designated Charitable Contribution Program In 2016, the Company established the Shareholder Designated Charitable Contribution Program. Under this initiative, all registered shareholders were eligible to designate a qualified 501(c)(3) charitable organization, and the Company made contributions of $100 per share on their behalf. From 2016 through 2024, LICT donated more than $10 million to shareholder-designated charities nationwide, reflecting the generosity of our shareholder base and the Company's ongoing commitment to social responsibility. Pending Board of Director approval, the program will continue with a $100 per share shareholder designated charitable contribution, commencing December 2025. LICT believes that charitable giving is a fundamental obligation for those with the means to make a meaningful impact. By empowering shareholders to direct contributions to causes they value, the program has extended LICT's commitment to community engagement and philanthropy. Revenues Second Quarter 2025 Total revenues were $34.4 million in the second quarter of 2025 compared with $33.7 million in the second quarter of 2024. Non-regulated revenues were $19.2 million, 56% of total revenues, compared with $18.8 million in the second quarter of 2024. The increase was primarily due to higher sales of broadband services and high-speed data circuits, mostly in Utah, Kansas and California. Regulated revenues were $15.2 million, representing an increase of $0.3 million, or 2.0%, compared to $14.9 million in the second quarter of 2024. Second quarter 2025 results also include regulated revenues from Manti Telephone Company (MTC), which was acquired on January 1, 2025; MTC contributed $0.9 million in regulated revenue this quarter. This acquisition supports our continued strategic expansion in rural markets. This was offset by reductions in voice service revenues consistent with broader industry trends. Additionally, interstate access revenues declined due to a drop in special access circuits which have been replaced with lower cost broadband services. Six Months ended June 30, 2025 Total revenues were $69.0 million for the six months ended June 30, 2025 compared with $67.2 million for the six months ended June 30, 2024. Non-regulated revenues were $38.6 million for the six months ended June 30, 2025 compared with $37.2 million for the six months ended June 30, 2024, an increase of $1.4 million, or 3.8%, driven by higher sales of broadband services and high-speed data circuits while at the same time encountering increased competition and pricing pressures in our expansion markets. Regulated revenues were $30.4 million for the six months ended June 30, 2025, compared with $29.9 million for the six months ended June 30, 2024. These results also include regulated revenues of $1.7 million from the Manti Telephone Company (MTC), which was acquired on January 1, 2025. This was offset by reductions in voice service revenues consistent with broader industry trends. Additionally, interstate access revenues declined due to a drop in special access circuits which have been replaced with lower cost broadband services. EBITDA Second Quarter 2025 EBITDA for the second quarter of 2025 was $13.5 million compared to $14.2 million for the same period in 2024, representing a decrease of $0.7 million, or 4.9%. The year-over- year decline primarily reflects higher operating expenses, particularly in labor, professional services, and maintenance activities supporting our ongoing network expansion. Importantly, as a greater number of capital expenditure projects transition from planning to execution in the second half of the year, a larger portion of labor and professional services expenses is expected to be capitalized. This shift is anticipated to reduce the impact of these costs on operating expenses going forward, supporting improved EBITDA margins in future periods. Non-regulated EBITDA for the second quarter of 2025 was $7.1 million, unchanged from the same period in 2024. Regulated EBITDA for the second quarter of 2025 was $6.4 million, compared to $7.2 million in the same period of 2024, reflecting a decrease of $0.8 million, or 11.1%. The decline was primarily driven by lower regulated revenues due to mandated pricing adjustments and by higher operating expenses. Six Months Ended June 30, 2025 EBITDA for the six months ended June 30, 2025 was $27.3 million, compared to $28.9 million for the same period in 2024, representing a decrease of $1.6 million, or 5.5%. The decline in EBITDA is consistent with the increase in operating costs, particularly higher personnel-related and professional service expenses tied to operational expansion. Although revenue growth in certain markets provided a partial offset, the net impact of these cost pressures resulted in a modest decline in EBITDA, which, along with higher depreciation and amortization expense, contributed to the overall decrease in net income. Non-regulated EBITDA for the first six months of 2025 was $14.4 million, compared to $14.4 million in the first six months 2024. Regulated EBITDA for the first six months of 2025 was $12.9 million, compared to $14.5 million in the same period of 2024, reflecting a decrease of $1.6 million, or 11.0%. The decline was primarily driven by increased operating costs, including higher expenses for expanded staffing and professional services related to our operational expansion, as well as elevated repair and maintenance activity in the Company's New Mexico and Utah operations. The following table is a reconciliation of EBITDA to Operating profit from operations: Net income and Earnings per Share Second Quarter 2025 Net income for the second quarter of 2025 was $3.2 million, or $198 per share, compared to $4.9 million, or $293 per share, for the same period in 2024. The $1.7 million, or 34.7%, year-over-year decrease in net income was primarily driven by higher operating and non- operating expenses. Total costs and expenses increased by $2.3 million, largely due to a $1.1 million rise in cost of revenue, which reflected expanded staffing, increased use of professional services, and higher repair and maintenance activity, particularly in the Company's New Mexico and Utah operations. Depreciation expense also increased by $0.6 million, driven by recent investments in network infrastructure. Six Months Ended June 30, 2025 Net income for the six months ended June 30, 2025 was $7.3 million, or $453 per share, compared to $9.9 million, or $586 per share, for the same period in 2024. The $2.6 million, or 26.3%, decrease in net income was primarily driven by a $5.2 million increase in total costs and expenses. This increase was largely due to a $2.6 million rise in cost of revenue— reflecting expanded staffing, professional services, and increased repair and maintenance activity in the Company's New Mexico and Utah operations—as well as a $1.4 million increase in depreciation and amortization expense associated with recent infrastructure investments. These higher operating and non-cash expenses were partially offset by a $1.8 million increase in revenue, driven by continued growth in broadband services in the Utah and Kansas markets. Leadership Additions Strengthen Operational and Strategic Capabilities During the quarter, LICT materially strengthened its leadership team. Joe Cecin joined LICT as Chief Operating Officer to support the company's continued network and geographical expansion and the execution of its long-term strategy. Additionally, Christopher Nossokoff joined us to support and accelerate our interest in non-organic growth. With a background in finance, accounting, and transaction due diligence—including roles at LGL Group and PricewaterhouseCoopers—Mr. Nossokoff enhances LICT's ability to evaluate strategic opportunities and support disciplined capital deployment. These appointments further bolster LICT's management team as the company continues to scale its broadband footprint and pursue long-term value creation. Tax Reform Bill Enlarges LICT's Cash Flow On July 4, 2025, the new tax bill was signed into law, delivering several key tax reforms with positive implications for LICT's financial position, notably 100% bonus depreciation, changes in R&D expensing and interest deductions. The legislation reinstates 100% bonus depreciation for qualified property placed in service after January 19, 2025. This provision is expected to meaningfully reduce near-term cash tax obligations and enhance after-tax returns on our broadband infrastructure investments, mostly through the capital expenditures planned through 2028. While we are still evaluating the full financial statement impact of these provisions, the enactment of the new tax bill strengthens LICT's ability to invest in network expansion, manage capital efficiently, and deliver long-term value to our shareholders. In addition, the continuation of lower corporate tax rates under the Act supports stronger after-tax cash flow, further enhancing our financial flexibility. Government Programs & Funding Update: Momentum Accelerates for Rural Broadband Expansion LICT continues to benefit from federal and regulatory momentum supporting rural broadband deployment. Recent developments across the Universal Service Fund (USF) and the Broadband Equity, Access, and Deployment (BEAD) program are removing barriers, streamlining funding mechanisms, and creating new opportunities for providers like us to expand high-quality, cost-effective service across our footprint. U.S. Supreme Court Decision on Universal Service Fund On June 27, 2025, the U.S. Supreme Court issued a decisive 6–3 ruling in FCC v. Consumers' Research, affirming the constitutionality of the USF under Section 254 of the Telecommunications Act. This long-awaited clarity secures the foundation for key programs, including High-Cost and Enhanced ACAM, providing uninterrupted support for rural broadband initiatives. For LICT, the decision directly supports our long-term capital plans and commitment to deliver at least 100/20 Mbps service in our RLEC territory. The plan calls for 50% of locations completed by December 31, 2026 and 100% by December 31, 2028. The ruling also reaffirmed the FCC's oversight of USF contributions and fund allocation, bringing regulatory consistency that allows rural carriers, like LICT, to invest. A newly reactivated bipartisan USF Working Group in Congress is driving efforts to modernize the contribution system and broaden the funding base—efforts we actively support through our leadership in USTelecom and WTA - Advocates for Rural Broadband (formerly known as Western Telecommunications Alliance). Broadband Equity, Access, and Deployment ("BEAD") Program We're encouraged by the recent 'Benefit of the Bargain' reforms to the BEAD program, which represent a welcome shift toward greater practicality and provider participation. These updates eliminate several non-statutory requirements—such as labor mandates, climate reporting, and net neutrality rules—that previously increased complexity and risk for rural projects. The revised framework also introduces a simplified Low-Cost Service Option ("LCSO") to ease compliance for low-income offerings, and a streamlined environmental review process aimed at achieving two-week NEPA approvals. Most importantly, the new rules emphasize lowest-cost, performance-sufficient solutions, providing greater flexibility for providers like LICT to leverage technologies such as fixed wireless, often the most efficient and economical option for reaching remote areas. With these improvements in place, we are actively re-engaging in BEAD applications. Together with the strengthened USF platform, these updates enhance our ability to expand affordable, high-speed broadband in underserved areas—delivering lasting value to our customers and our communities. Government Grants and Capital Expenditures Enhanced Alternative Connect America Cost Model ("E-ACAM") Program LICT's voluntary participation in the E-ACAM program became effective on January 1, 2024. The program aims to accelerate broadband deployment and improve speeds in rural areas across the U.S. Under this initiative, LICT entities will receive a total of $37.2 million annually through 2038, subject to a one-time true-up determination by the FCC by December 31, 2025. Reconnect III and Reconnect IV As previously announced, LICT has been awarded $157.5 million for seven United States Department of Agriculture ("USDA") ReConnect III and ReConnect IV grants awarded in Kansas, California and New Mexico with a total project cost of $171.2 million, of which our share of cost will be approximately $13.7 million. These grants require us to provide 1 Gig of fiber broadband speed. Fiber construction is already underway for the Kansas grant and the New Mexico ReConnect projects. The five remaining grants—three in New Mexico and two in California—have also secured environmental clearance and are currently in the pre-construction phase, pending commencement of build-out activities. Strategic Initiatives The Company continues to implement strategic measures aimed at lowering the cost structure of its capital investment programs. By leveraging fixed wireless solutions and alternative access technologies, the Company is focused on achieving more capital-efficient network deployments while maintaining service quality and coverage targets. FIXED WIRELESS/5G — Under the leadership of Dylan Larmore, Sound Broadband LLC, the wireless subsidiary of LICT Corporation, has completed several 5G deployments in its existing markets and is expanding into new regions, including New Mexico, California, Kansas, and Utah. The company is currently identifying sites in California, Iowa and Kansas for new expansion markets, with the plan to deliver the highest speeds at the best possible cost to customers. Sound Broadband remains committed to bridging the digital divide and delivering next-generation connectivity across diverse sectors and underserved regions, both in our existing operations as well as outside of our historical territories. Operating Statistics / Broadband Deployment LICT owns and operates 7,483 miles of fiber optic cable, 8,945 miles of copper cable, 847 miles of coaxial cable, 103 towers and 301 spectrum licenses (1,216 million MHZPoP). The table below provides a comparative summary of the Company's subscriber and line metrics as of June 30, 2025, versus December 31, 2024. Liquidity and Balance Sheet Highlights Liquidity In October 2024, the Company enhanced its financial flexibility by securing a $100 million five-year term revolving credit facility with CoBank. As of June 30, 2025, the Company had drawn $53.8 million under this facility, with an average interest rate of 6.4%. As previously disclosed, in August 2024, the Company entered into an $11 million credit facility with First Central State Bank ("FCSB") to support construction of its Iowa NOFA 6 project. The project was successfully completed in March 2025, and on March 31, 2025, the Company received $7.2 million in grant funding from the State of Iowa. The FCSB facility was fully repaid in early May 2025. As of June 30, 2025, the Company's net debt balance was $67.7 million, compared to $57.1 million as of December 31, 2024. The Company maintains sufficient liquidity under its $100 million credit facility, allowing it to balance strategic investments, acquisitions, and return of capital to shareholders. Capital Expenditures In the second quarter of 2025, capital expenditures totaled $17.6 million, up from $11.8 million in the second quarter of 2024. Spending this quarter was primarily directed toward the continued build-out of E-ACAM broadband infrastructure and early-phase ReConnect III and IV initiatives. The Company also allocated capital to fixed wireless and 5G network expansion under the direction of its Sound Broadband subsidiary. Capital investments remain integral to achieving regulatory commitments and expanding high-speed broadband services across LICT's rural markets. Share Repurchase Program For the three months ended June 30, 2025, the Company repurchased 275 shares of its common stock for a total of $3.5 million. For the six months ended June 30, 2025, the Company repurchased 441 shares of its common stock, totaling $6.1 million. On July 1, 2025, the Company's Board of Directors authorized the repurchase of an additional 250 shares, reflecting the Company's continued commitment to enhancing long-term shareholder value. As of June 30, 2025, LICT had 15,732 shares outstanding. About LICT Corporation LICT Corporation (OTC Pink ®: LICT) is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business. LICT has operations in California, Kansas, Iowa, New Mexico, Oregon, Utah, and Wisconsin. Additionally, the company holds investments in wireless spectrum, MachTen Inc., Aureon Network Services, CVIN LLC, and the Kansas Fiber Network. Cautionary Note Concerning Forward Looking Statements This release contains certain forward-looking information 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, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met.
12 hours ago
US approves potential $346 million weapons sale to Nigeria to bolster security
ABUJA, Nigeria -- The U.S. State Department approved a possible $346 million weapons sale to Nigeria to help improve security in the sub-Saharan country, the Pentagon said Wednesday. Congress was notified and would need to approve the sale, the Defense Security Cooperation Agency said in a statement. The agency is a division of the Department of Defense body that provides technical assistance and oversees transfers of defense equipment. The weapons requested by Nigeria include munitions, bombs and rockets. A resurgence of attacks by Boko Haram, Nigeria's homegrown jihadist group, has shaken Nigeria's northeast. The group took up arms in 2009 to fight Western education and impose its radical version of Islamic law. In recent months, Islamic extremists have repeatedly overrun military outposts, mined roads with bombs and raided civilian communities, raising fears of a possible return to the peak insecurity of the Boko Haram era despite the military's claims of success against them. The conflict, which has spread into Nigeria's northern neighbors, has claimed about 35,000 civilian lives and displaced more than 2 million people in the country's northeastern region, according to the U.N. Apart from the insurgency in the northeast, Africa's most populous country also faces serious security challenges in the north-central and northwest regions, where hundreds have been killed and injured in recent months. 'The proposed sale will improve Nigeria's capability to meet current and future threats through operations against terrorist organizations and to counter illicit trafficking in Nigeria and the Gulf of Guinea,' the Pentagon said Wednesday. 'There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.' In the past 10 years, Nigeria has bought military equipment from the U.S. on several occasions. Most recently, the U.S. approved a $997-million weapons sale in 2022.
San Francisco Chronicle
13 hours ago
- San Francisco Chronicle
US approves potential $346 million weapons sale to Nigeria to bolster security
ABUJA, Nigeria (AP) — The U.S. State Department approved a possible $346 million weapons sale to Nigeria to help improve security in the sub-Saharan country, the Pentagon said Wednesday. Congress was notified and would need to approve the sale, the Defense Security Cooperation Agency said in a statement. The agency is a division of the Department of Defense body that provides technical assistance and oversees transfers of defense equipment. The weapons requested by Nigeria include munitions, bombs and rockets. A resurgence of attacks by Boko Haram, Nigeria's homegrown jihadist group, has shaken Nigeria's northeast. The group took up arms in 2009 to fight Western education and impose its radical version of Islamic law. In recent months, Islamic extremists have repeatedly overrun military outposts, mined roads with bombs and raided civilian communities, raising fears of a possible return to the peak insecurity of the Boko Haram era despite the military's claims of success against them. The conflict, which has spread into Nigeria's northern neighbors, has claimed about 35,000 civilian lives and displaced more than 2 million people in the country's northeastern region, according to the U.N. Apart from the insurgency in the northeast, Africa's most populous country also faces serious security challenges in the north-central and northwest regions, where hundreds have been killed and injured in recent months. 'The proposed sale will improve Nigeria's capability to meet current and future threats through operations against terrorist organizations and to counter illicit trafficking in Nigeria and the Gulf of Guinea,' the Pentagon said Wednesday. 'There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.'
