Latest news with #Yield
Business Upturn
22-05-2025
- Business
- Business Upturn
Guggenheim Second Quarter 2025 High Yield and Bank Loan Outlook: Credit Crossroads: Finding Value in an Era of Uncertainty
NEW YORK, May 22, 2025 (GLOBE NEWSWIRE) — Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today released its second quarter High Yield and Bank Loan Outlook. 'Credit Crossroads: Finding Value in an Era of Uncertainty,' examines the outlook for high yield corporate bonds and leveraged loans amid an uncertain economic environment and dimming growth outlook. Key takeaways: Despite recent progress on trade negotiations, tariffs and related uncertainty have weakened the U.S. economic outlook, widening the range of potential outcomes for credit. While progress on trade negotiations has lowered the probability of deeper economic downside risks, we think agreements will ultimately still result in higher effective tariff rates than at the start of the year. The leveraged credit market delivered positive returns, despite historically high volatility. Spreads for the strongest credits retraced quickly and are now tighter than the start of the year, while spreads for the weakest credits remain wider, as investors isolated the likely impact of tariffs across issuers and industries. Fundamentals vary widely by capital structure and issuer type. Industries that have outperformed are perceived as more resilient to tariff impacts due to less impact from trade issues or with defensive characteristics. In tariff-exposed sectors, spreads for the weakest credits are 20–30 percent wider than where they started the year, suggesting risks have not fully receded. We currently favor high yield corporates with stronger credit profiles and less exposure to tariff impacts and are maintaining cash to capitalize on relative value opportunities as spreads evolve. Substantial downside risk remains should trade negotiations disappoint, or if a deeper shock becomes evident when the full impact of tariffs materializes. We continue to actively monitor our portfolios, focusing on vulnerability to cost inflation, supply chain disruptions, and sourcing dependencies, while emphasizing issuers with pricing flexibility, negotiating power, and diversified sourcing strategies. For more information, please visit About Guggenheim Investments Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners and has more than $349 billion1 in total assets across fixed income, equity and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 220+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification opportunities and attractive long-term results. 1. Guggenheim Investments total assets are as of 3.31.2025 and includes $246 bn in GI Assets Under Management (AUM), plus $102.3 bn in non-advisory GI Assets Under Supervision (AUS) for a total of more than $349 bn. AUM includes leverage of $15.2 bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Private Investments, LLC, Guggenheim Wealth Solutions, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Japan Limited, and GS GAMMA Advisors, LLC. Investing involves risk, including the possible loss of principal. In general, the value of a fixed-income security falls when interest rates rise and rises when interest rates fall. Longer term bonds are more sensitive to interest rate changes and subject to greater volatility than those with shorter maturities. During periods of declining rates, the interest rates on floating rate securities generally reset downward and their value is unlikely to rise to the same extent as comparable fixed rate securities. High yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility. Investors in asset-backed securities, including mortgage-backed securities and collateralized loan obligations ('CLOs'), generally receive payments that are part interest and part return of principal. These payments may vary based on the rate loans are repaid. Some asset-backed securities may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices volatile and they are subject to liquidity and valuation risk. CLOs bear similar risks to investing in loans directly, such as credit, interest rate, counterparty, prepayment, liquidity, and valuation risks. Loans are often below investment grade, may be unrated, and typically offer a fixed or floating interest rate. This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy, or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation. This material contains opinions of the author, but not necessarily those of Guggenheim Partners, LLC, or its subsidiaries. The opinions contained herein are subject to change without notice. Forward-looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC. Media Contact Gerard Carney Guggenheim Partners310.871.9208 [email protected]
Time of India
02-05-2025
- Business
- Time of India
Trump admin again pokes the Federal Reserve, Scott Bessent says it's time for Jerome Powell to cut rates
The Trump administration is again putting pressure on the Federal Reserve, this time pointing at bond market signals as the reason to reduce interest rates, as per a report. Treasury Secretary Scott Bessent , following the increasing frustration of US president Donald Trump with the central bank, claims that it's time Fed Chair Jerome Powell took action. #Pahalgam Terrorist Attack Pakistan reopens Attari-Wagah border to allow stranded citizens in India to return Key Jammu & Kashmir reservoirs' flushing to begin soon Air India sees Pakistan airspace ban costing it $600 mn over 12 months Trump Administration Pushes for Interest Rate Cuts In a Fox Business interview, Bessent said, "We are seeing that two-year rates are now below fed funds rates," as quoted by Business Insider. He also said, "That's a market signal that they think the Fed should be cutting," as quoted in the report. Through Thursday, the two-year Treasury yield was 3.56%, significantly lower than the effective federal funds rate of 4.33%, which has held since February, as per Business Insider. 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 20 Most Expensive Cars Undo According to the report, the Trump administration has focused on interest rates because it wants to bring down borrowing costs for consumers . Donald Trump's Persistent Criticism of Jerome Powell While, the US president has continued to criticize Powell, saying, "I think I understand interest a lot better than him because I've had to really use interest rates. We should have interest rates go down," as quoted in the report. Live Events Fed Policy Meeting Soon The Fed's next policy meeting will take place on May 7, and few investors are predicting a pivot on the interest rate outlook, as per Business Insider. As per the CME FedWatch Tool, markets predict that June would be the earliest date for a possible rate cut, according to the report. Eyes on the 10-Year Yield Bessent pointed out that he and Trump closely monitor the 10-year Treasury yield to gauge the health of the economy, as per Business Insider. According to him, in early April, when the yield spiked aggressively it was because of Wall Street institutions de-leveraging their Treasury positions, reported Business Insider. He said, "It just turned out that it was some overleveraged market players," adding, "Now we're continuing on the downward path, and I think our policies are going to bring down inflation," quoted Business Insider. FAQs Why is the Trump administration pushing for lower interest rates? They believe it will reduce borrowing costs for consumers and boost the economy. Who sets the fed funds rate? The Federal Reserve, led by Jerome Powell.
What's On
29-04-2025
- Entertainment
- What's On
12 fantastic new things to do in Dubai this May
New month, new things to do in Dubai… Dubai never hits pause, and May is packed with everyday excitement and new things to do across the city. With the cooler weather fading and early summer setting in, it's the perfect time for poolside relaxation, lively music concerts, art galleries, new restaurant openings, and pop-ups. Here are 12 fantastic new things to do in Dubai this May. INA INA is here – the highly-anticipated fire-cooking concept at J1 Beach just touched down, and it's bringing the renowned Chef Glen Ballis to Dubai to bring the venue to life. INA will complete the circle of 13 restaurants at J1, a beachfront destination unlike any other in the city. This is the perfect time to open the venture, as guests will be able to enjoy the full potential of the restaurant with outdoor seating built for the winter months, with an open-air retractable roof, from where they will be able to view the industrial-style grill directly, located off of the main dining space. INA, J1 Beach. @ London's Yield Gallery One of London's standout contemporary art spaces has officially landed in Dubai. Yield Gallery has set up shop in One Central with a compact new space showcasing works by the likes of Andy Warhol, Banksy, Richard Hambleton, Hockney, and more. Known for mixing blue-chip names with rising talent, Yield's Dubai launch is a smart stop for art lovers, collectors, and anyone looking to escape the heat with something a bit more inspiring. Yield gallery, Ground Floor, One Central, Dubai World Trade Centre. Visits are by appointment only – to book, contact (0)54 746 2112. @yield_gallery NETTE, Al Barari The much-loved café from Al Quoz has just dropped its second location – this time in the middle of the lush, green oasis that is Al Barari. Think matcha in the garden, French-Japanese flavours with a twist, and a vibe that makes you want to stay way past lunch. Expect the same creativity that made the original a cult favourite, now served with a side of nature. The all-day menu is stacked with hits like the Katsu Beef Burger, Okonomiyaki Omelette, and French Onion Ramen (yes, that's a thing – and yes, you need to try it). There's also a fresh drop of NETTE merch in-store, so you can take a piece of the café home with you. Between the breezy garden seating, good coffee, and slow-living energy, this one's definitely worth the drive. NETTE, Al Barari. Tel: (0)4 329 4800. Music Loves Company Music Loves Company is a café by day, bar by night, and a live entertainment hotspot all in one. Expect everything from chilled coffee catch-ups to late-night comedy and gigs, with great food and drinks to match. The vibe is a laid-back, social space where music lovers, coffee enthusiasts, and comedy fans can hang out. Whether you're here for a relaxed afternoon or to catch a live show, the vibe is always lively. The menu features coffee, fresh juices, hearty wraps, colourful salads, and sweet treats like stuffed cookies and banana bread. The cocktail list is fun, with drinks inspired by classic song lyrics. Music Loves Company, Expo City Dubai. @wearemlc_ Dubai Restaurant Week Running from 9 to 25 May, Dubai Restaurant Week is a solid excuse to eat your way around the city without blowing the budget. Over 100 restaurants are in on it this year, each offering limited-time menus – think two-course lunches for Dhs125 and three-course dinners for Dhs250. Whether you're in the mood for sleek Cantonese, laid-back British comfort food, or buzzy Japanese bites, the line-up covers a lot of ground. It's also a good chance to finally book that spot you've been meaning to try. We'll be sharing our guide to the spots worth checking out, so stay tuned. Solomun, Rampa, and more at Playa Pacha Solomun If you know house music, you know Solomun, a name that needs no introduction. And when Solomun steps behind the decks, you already know what's coming – deep, melodic sounds and the kind of atmosphere that only a Pacha event does well. This Friday, May 2, the maestro himself is taking over Pacha ICONS at Playa Pacha, FIVE LUXE JBR. Pacha ICONS at Playa Pacha, FIVE LUXE, The Walk, Jumeirah Beach Residence, Friday, May 2, tickets starting at Dhs200. Tel: (0)4 455 9989. @playapachadubai. Rampa If you've been waiting for a reason to get dressed up, stay out late, and dance all night – this is it. Pacha ICONS at FIVE LUXE is bringing out the big names this Saturday, May 3, and the lineup is not playing around: Rampa (Keinemusik royalty), Benji B (your favourite DJ's favourite DJ), and Anrey (deep, emotional – all the good stuff). Playa Pacha, FIVE LUXE, JBR. Saturday, May 3, 7pm onwards, tickets: starting at Dhs500 for dancefloor access, VIP tables from Dhs2,500. KŌR Pilates KŌR Pilates is launching soon at InterContinental Dubai Marina – and it's more than just a workout. Expect precision-focused reformer sessions designed to build strength and balance, with a touch of luxury woven in. Post-class, you can hang back for refreshments and a bit of calm. It's a polished new spot for anyone who simply loves movement. KŌR Pilates, InterContinental Dubai Marina. @korpilatesdubai Pai Thai's floating market, Jumeirah Al Qasr Something seriously cool is floating into town. Every Saturday until May 3, Pai Thai is turning the waterways of Jumeirah Al Qasr into a full-blown Thai floating market—think Bangkok energy, Dubai style. Hop on an abra, cruise through lush canals, and snack your way through live cooking stations serving up proper Thai street food, tropical drinks, and sweet bites. It's not just about the food either – expect traditional performances, vibrant décor, and all the market vibes without leaving Madinat. A solid way to spend your Saturday. Pai Thai, Jumeirah Al Qasr, every Saturday until May 3, from 12.30pm to 3.30pm. @paithaidubai Caribbean Beach Festival Shoot the breeze and kick back like Bob Marley at Reggae Beachfest, the region's longest-running Caribbean Beach Festival back at Barasti Beach. Enjoy a laid-back 12-hour celebration with music, food, and the perfect dose of Caribbean calm. Pool and beach access included. Barasti Beach, Le Méridien Mina Seyahi Beach Resort & Waterpark, May 3, tickets from Dhs150. Moon Slice This one's for the pizza lovers. Moon Slice, the cult-favourite pizzeria, just landed in Dubai Mall's new District wing, bringing its signature pizzas with it. Cool, low-key and all about quality. Expect authentic Neapolitan-style pizzas, fresh pastas, and more. The District, Dubai Mall. @moonslicepizza The Coterie, Bingo Brunch New brunch concepts galore and The Coterie combines brunch will bingo every Saturday. Feast on signature dishes like Marmite roasties, glazed chicken poppers, and fish 'n' chips, while playing for massive prizes, including a luxury vacation to Istanbul, Phuket, Tbilisi, or Baku. The Coterie, every Saturday, House packages start at Dhs325. @ Images: Supplied/Instagram
Yahoo
19-03-2025
- Business
- Yahoo
Evolve Announces March 2025 Distributions for Certain Evolve Funds
TORONTO , March 19, 2025 /CNW/ - Evolve Funds Group Inc. ("Evolve") is pleased to announce the distribution amounts per unit (the "Distributions") for certain funds (the "Evolve Funds"), as indicated in the table below. The ex-dividend date and record date for the Distributions of the High Interest Savings Account Fund ("HISA"), US High Interest Savings Account Fund ("HISU.U"), Premium Cash Management Fund ("MCAD") and US Premium Cash Management Fund ("MUSD.U") is anticipated to be March 27, 2025. For the distributions for all other Evolve Funds, the ex-dividend date and record date is anticipated to be March 31, 2025. Unitholders of Evolve Funds on record date will receive cash distributions payable on or about April 7, 2025. Evolve Funds Ticker Symbol Distribution per Unit Frequency Evolve Canadian Aggregate Bond Enhanced Yield Fund AGG $0.10000 Monthly Evolve Canadian Banks and Lifecos Enhanced Yield Index Fund BANK $0.11000 Monthly Evolve Global Materials & Mining Enhanced Yield Index ETF BASE BASE.B $0.20000 $0.20000 Monthly Monthly Evolve Enhanced Yield Bond Fund BOND BOND.B BOND.U $0.19000 $0.19000 USD $0.19000 Monthly Monthly Monthly Evolve US Banks Enhanced Yield Fund CALL CALL.B CALL.U $0.12500 $0.16000 USD $0.14000 Monthly Monthly Monthly Evolve Automobile Innovation Index Fund CARS CARS.B CARS.U $0.02000 $0.02000 USD $0.02000 Monthly Monthly Monthly Evolve Cyber Security Index Fund CYBR CYBR.B CYBR.U $0.01000 $0.01000 USD $0.01000 Monthly Monthly Monthly Evolve Cloud Computing Index Fund DATA DATA.B $0.01000 $0.01000 Monthly Monthly Evolve Active Canadian Preferred Share Fund DIVS $0.07000 Monthly Evolve Active Global Fixed Income Fund EARN $0.12500 Monthly Evolve European Banks Enhanced Yield ETF EBNK EBNK.B EBNK.U $0.14500 $0.14500 USD $0.14500 Monthly Monthly Monthly Evolve Innovation Index Fund EDGE EDGE.U $0.01000 USD $0.01000 Quarterly Quarterly Evolve S&P 500® Enhanced Yield Fund ESPX ESPX.B ESPX.U $0.22500 $0.24500 USD $0.22500 Monthly Monthly Monthly Evolve S&P/TSX 60 Enhanced Yield Fund ETSX $0.18800 Monthly Evolve Active Core Fixed Income Fund FIXD $0.05500 Monthly Evolve E-Gaming Index ETF HERO $0.05000 Quarterly High Interest Savings Account Fund HISA $0.10788 Monthly US High Interest Savings Account Fund HISU.U USD $0.33540 Monthly Evolve Future Leadership Fund LEAD LEAD.B LEAD.U $0.16000 $0.16000 USD $0.16000 Monthly Monthly Monthly Evolve Global Healthcare Enhanced Yield Fund LIFE LIFE.B LIFE.U $0.19000 $0.23000 USD $0.19000 Monthly Monthly Monthly Premium Cash Management Fund MCAD $0.24993 Monthly US Premium Cash Management Fund MUSD.U USD $0.35271 Monthly Evolve NASDAQ Technology Index Fund QQQT QQQT.B QQQT.U $0.03000 $0.03000 USD $0.03000 Quarterly Quarterly Quarterly Evolve NASDAQ Technology Enhanced Yield Index Fund QQQY $0.32000 Monthly Evolve FANGMA Index ETF TECH TECH.B TECH.U $0.00160 $0.00160 USD $0.00160 Monthly Monthly Monthly Evolve Canadian Utilities Enhanced Yield Index Fund UTES $0.13800 Monthly Distributions for the funds will vary from period to period. For further information regarding the Distributions, please visit Commissions, management fees and expenses all may be associated with exchange traded funds (ETFs) and mutual funds. ETFs and mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus for a complete description of risks relevant to ETFs and mutual funds. Investors may incur customary brokerage commissions in buying or selling ETF and mutual fund units. Please read the prospectus before investing. Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law. About Evolve Funds Group Inc. With over $7 billion in assets under management, Evolve is one of Canada's fastest growing ETF providers since launching its first ETF in September 2017. Evolve specializes in bringing innovative ETFs to Canadian investors. Evolve's suite of ETFs provide investors with access to: (i) index-based income strategies; (ii) long term investment themes; and (iii) some of the world's leading investment managers. Established by a team of industry veterans with a proven track record of success, Evolve creates investment products that make a difference. For more information, please visit Join us on social media: Twitter | LinkedIn | Facebook | Youtube The S&P 500® Index and the S&P/TSX 60 Index are each a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by the Evolve Funds. S&P® and S&P 500® are trademarks of S&P Global, Inc. or its affiliates ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). It is not possible to invest directly in an index. The Evolve Funds are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, "S&P Dow Jones Indices"). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the Evolve Funds or any member of the public regarding the advisability of investing in securities generally or in the Evolve Funds particularly or the ability of the S&P 500® Index and the S&P/TSX 60 Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices' only relationship to the Evolve Funds with respect to the S&P 500® Index and the S&P/TSX 60 Index is the licensing of the Indexes and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500® Index and the S&P/TSX 60 Index are determined, composed and calculated by S&P Dow Jones Indices without regard to the Evolve Funds. S&P Dow Jones Indices have no obligation to take the needs of the Evolve Funds or the owners of the Evolve Funds into consideration in determining, composing or calculating the S&P 500® Index and the S&P/TSX 60 Index. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the Evolve Funds. There is no assurance that investment products based on the S&P 500® Index or the S&P/TSX 60 Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an "investment adviser, commodity trading advisory, commodity pool operator, broker dealer, fiduciary, promoter" (as defined in the Investment Company Act of 1940, as amended), "expert" as enumerated within 15 U.S.C. s. 77k(a) or tax advisor. Inclusion of a security, commodity, crypto currency or other asset within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, commodity, crypto currency or other asset, nor is it considered to be investment advice or commodity trading advice. S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500® INDEX AND THE S&P/TSX 60 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY THE EVOLVE FUNDS, THE OWNERS OF THE EVOLVE FUNDS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500® INDEX AND THE S&P/TSX 60 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. S&P DOW JONES INDICES HAS NOT REVIEWED, PREPARED AND/OR CERTIFIED ANY PORTION OF, NOR DOES S&P DOW JONES INDICES HAVE ANY CONTROL OVER, THE LICENSEE PRODUCT REGISTRATION STATEMENT, PROSPECTUS OR OTHER OFFERING MATERIALS. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND THE EVOLVE FUNDS OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted™ Index are trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by Evolve ETFs. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S). SOURCE Evolve ETFs View original content:
Associated Press
13-02-2025
- Business
- Associated Press
PDF Solutions® Announces Record 2024 Fourth Quarter and Full Year Total Revenues
SANTA CLARA, Calif., Feb. 13, 2025 (GLOBE NEWSWIRE) -- PDF Solutions, Inc. (Nasdaq: PDFS), a leading provider of comprehensive data solutions for the semiconductor and electronics ecosystem, today announced financial results for its fourth quarter and year ended December 31, 2024. Financial Highlights of Fourth Quarter 2024 Record quarterly total revenues of $50.1 million, up 22% over last year's comparable quarter Record quarterly analytics revenue of $47.9 million, up 22% over last year's comparable quarter GAAP gross margin of 68% and non-GAAP gross margin of 72% GAAP diluted earnings per share (EPS) of $0.01 and non-GAAP diluted EPS of $0.25 Financial Highlights of Full Year 2024 Record full year total revenues of $179.5 million, up 8% over last year Record full year analytics revenue of $169.3 million, up 11% over last year GAAP gross margin of 70% and non-GAAP gross margin of 74% GAAP diluted EPS of $0.10 and non-GAAP diluted EPS of $0.84 Backlog of $221.4 million as of December 31, 2024 Total revenues for the fourth quarter of 2024 were $50.1 million, compared to $46.4 million for the third quarter of 2024 and $41.1 million for the fourth quarter of 2023. Analytics revenue for the fourth quarter of 2024 was $47.9 million, compared to $44.8 million for the third quarter of 2024 and $39.1 million for the fourth quarter of 2023. Integrated Yield Ramp revenue for the fourth quarter of 2024 was $2.2 million, compared to $1.7 million for the third quarter of 2024 and $2.0 million for the fourth quarter of 2023. Total revenues for the full year 2024 and 2023 were $179.5 million and $165.8 million, respectively. GAAP gross margin for the fourth quarter of 2024 was 68%, compared to 73% for the third quarter of 2024 and 68% for the fourth quarter of 2023. GAAP gross margin for the full year 2024 and 2023 was 70% and 69%, respectively. Non-GAAP gross margin for the fourth quarter of 2024 was 72%, compared to 77% for the third quarter of 2024 and 72% for the fourth quarter of 2023. Non-GAAP gross margin for the full year 2024 and 2023 was 74% and 73%, respectively. On a GAAP basis, net income for the fourth quarter of 2024 was $0.5 million, or $0.01 per diluted share, compared to net income of $2.2 million, or $0.06 per diluted share, for the third quarter of 2024, and net income of $0.9 million, or $0.02 per diluted share, for the fourth quarter of 2023. On a GAAP basis, net income for the full year 2024 was $4.1 million, or $0.10 per diluted share, compared to net income of $3.1 million, or $0.08 per diluted share, for the full year 2023. Non-GAAP net income for the fourth quarter of 2024 was $9.9 million, or $0.25 per diluted share, compared to non-GAAP net income of $9.9 million, or $0.25 per diluted share, for the third quarter of 2024, and non-GAAP net income of $5.7 million, or $0.15 per diluted share, for the fourth quarter of 2023. Non-GAAP net income for the full year 2024 was $32.6 million, or $0.84 per diluted share, compared to non-GAAP net income of $28.5 million, or $0.73 per diluted share, for the full year 2023. Cash, cash equivalents and short-term investments as of December 31, 2024, were $114.9 million. Financial Outlook 'We are pleased with the progress we are making with our customers. During the fourth quarter of 2024, we completed an ongoing manufacturing evaluation of an eProbe machine earlier than the customer's schedule, resulting in the sale to this new leading edge customer, booked multiple Exensio deals, and saw growth in our Cimetrix connectivity business from runtime licenses. In 2025, we expect our full year revenues to grow at a rate approaching 15% year over year,' said John Kibarian, CEO and President. Conference Call As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today. To participate on the live call, analysts and investors should pre-register at: Registrants will receive dial-in information and a unique passcode to access the call. We encourage participants to dial into the call ten minutes ahead of the scheduled time. The teleconference will also be webcast simultaneously on the Company's website at A replay of the conference call webcast will be available after the call on the Company's investor relations website. A copy of this press release, including the disclosure and reconciliation of certain non-GAAP financial measures to the comparable GAAP measures, which non-GAAP measures may be used periodically by PDF Solutions' management when discussing financial results with investors and analysts, will also be available on PDF Solutions' website at following the date of this release. Fourth Quarter and Full Year 2024 Financial Commentary Available Online A Management Report reviewing the Company's fourth quarter and full year 2024 financial results will be furnished to the Securities and Exchange Commission on Form 8-K and published on the Company's website at Analysts and investors are encouraged to review this commentary prior to participating in the conference call. Information Regarding Use of Non-GAAP Financial Measures In addition to providing results that are determined in accordance with accounting principles generally accepted in the United States of America ('GAAP'), PDF Solutions also provides certain non-GAAP financial measures. Non-GAAP gross profit and margin exclude stock-based compensation expense and the amortization of acquired technology under costs of revenues. Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, and the effects of certain non-recurring items, such as expenses for certain legal proceedings, non-recurring legal, tax and accounting service-related costs, loss on damaged equipment in-transit, net of recovery from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items. These non-GAAP financial measures are used by management internally to measure the Company's profitability and performance. PDF Solutions' management believes that these non-GAAP measures provide useful supplemental information to investors regarding the Company's ongoing operations in light of the fact that none of these categories of expense and income has a current effect on the future uses of cash (with the exception of expenses related to certain legal proceedings and non-recurring legal, tax and accounting services) nor do they impact the generation of current or future revenues. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may differ from similarly titled non-GAAP measures used by other companies. In particular, these non-GAAP financial measures are not a substitute for GAAP measures of income or loss as a measure of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity. Since management uses these non-GAAP financial measures internally to measure profitability and performance, PDF Solutions has included these non-GAAP measures to give investors an opportunity to see the Company's financial results as viewed by management. A reconciliation of the comparable GAAP financial measures to the non-GAAP financial measures is provided at the end of the Company's condensed consolidated financial statements presented below. Forward-Looking Statements This press release and the planned conference call include forward-looking statements regarding the Company's future expected business performance and financial results, including expectations about total revenue growth for 2025 and other statements identified by words such as 'could,' 'expects,' 'intends,' 'may,' 'plans,' 'potential,' 'should,' 'will,' 'would,' or similar expressions and the negatives of those terms, that are subject to future events and circumstances. Other than statements of historical fact, all statements contained in this press release and the planned conference call are forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: the effectiveness of the Company's business and technology strategies; current semiconductor industry trends and competition; rates of adoption of the Company's solutions by new and existing customers; project milestones or delays and performance criteria achieved; cost and schedule of new product development and investments in research and development; the continuing impact of macroeconomic conditions, including inflation, changing interest rates and tariffs, the evolving trade regulatory environment and geopolitical tensions, and other trends on the semiconductor industry, the Company's customers, operations, and supply and demand for its products; supply chain disruptions; the success of the Company's strategic growth opportunities and partnerships; recent and future acquisitions, strategic alliances and relationships and the Company's ability to successfully integrate acquired businesses and technologies; whether the Company can successfully convert backlog into revenue; customers' production volumes under contracts that provide Gainshare; the sufficiency of the Company's cash resources and anticipated funds from operations; the Company's ability to obtain additional financing if needed and its ability to use support and updates for certain open-source software; and other risks set forth in PDF Solutions' periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and amendments to such reports. The forward-looking statements made in this press release and the conference call are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements. The Company has not filed its Annual Report on Form 10-K for the year ended December 31, 2024. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time the Company files its Annual Report on Form 10-K. About PDF Solutions PDF Solutions (Nasdaq: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics industry ecosystem to improve manufacturing yield, product quality and operational efficiency leading to increased profitability. The Company's products and services are used by Fortune 500 companies across the semiconductor and electronics ecosystem to achieve smart manufacturing goals by connecting and controlling manufacturing equipment, collecting data generated during manufacturing and test operations, and using advanced analytics and machine learning models to enable profitable, high-volume manufacturing. Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations across North America, Europe, and Asia. The Company (directly or through one or more subsidiaries) is an active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and DMDII. For the latest news and information about PDF Solutions or to find office locations, visit PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. or its subsidiaries. PDF SOLUTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands) December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 90,594 $ 98,978 Short-term investments 24,291 36,544 Accounts receivable, net 73,649 44,904 Prepaid expenses and other current assets 17,445 17,422 Total current assets 205,979 197,848 Property and equipment, net 48,465 37,338 Operating lease right-of-use assets, net 4,029 4,926 Goodwill 14,953 15,029 Intangible assets, net 12,307 15,620 Deferred tax assets, net 43 157 Other non-current assets 29,513 19,218 Total assets $ 315,289 $ 290,136 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 8,255 $ 2,561 Accrued compensation and related benefits 16,855 14,800 Accrued and other current liabilities 8,752 4,633 Operating lease liabilities ‒ current portion 1,675 1,529 Deferred revenues ‒ current portion 24,930 25,750 Billings in excess of recognized revenues 75 1,570 Total current liabilities 60,542 50,843 Long-term income taxes 2,915 2,972 Non-current operating lease liabilities 3,504 4,657 Other non-current liabilities 2,291 2,718 Total liabilities 69,252 61,190 Stockholders' equity: Common stock and additional paid-in capital 502,908 473,301 Treasury stock, at cost (159,352) (143,923) Accumulated deficit (93,988) (98,045) Accumulated other comprehensive loss (3,531) (2,387) Total stockholders' equity 246,037 228,946 Total liabilities and stockholders' equity $ 315,289 $ 290,136 PDF SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except per share amounts) Three months ended Year ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Revenues: Analytics $ 47,926 $ 44,750 $ 39,128 $ 169,253 $ 152,085 Integrated yield ramp 2,159 1,659 1,997 10,212 13,750 Total revenues 50,085 46,409 41,125 179,465 165,835 Costs and Expenses: Costs of revenues 15,901 12,484 13,194 54,144 51,749 Research and development 14,417 13,516 12,308 53,566 50,736 Selling, general, and administrative 19,073 18,094 16,194 69,924 62,216 Amortization of acquired intangible assets 182 196 306 896 1,285 Interest and other expense (income), net (962) (1,511) (1,020) (5,644) (5,020) Income before income tax benefit (expense) 1,474 3,630 143 6,579 4,869 Income tax benefit (expense) (935) (1,424) 744 (2,522) (1,764) Net income $ 539 $ 2,206 $ 887 $ 4,057 $ 3,105 Net income per share: Basic $ 0.01 $ 0.06 $ 0.02 $ 0.11 $ 0.08 Diluted $ 0.01 $ 0.06 $ 0.02 $ 0.10 $ 0.08 Weighted average common shares used to calculate net income per share: Basic 38,783 38,710 38,269 38,602 38,015 Diluted 39,104 39,105 38,814 39,047 38,937 PDF SOLUTIONS, INC. RECONCILIATION OF GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN (UNAUDITED) (In thousands) Three months ended Year ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 GAAP Total revenues $ 50,085 $ 46,409 $ 41,125 $ 179,465 $ 165,835 Costs of revenues 15,901 12,484 13,194 54,144 51,749 GAAP gross profit $ 34,184 $ 33,925 $ 27,931 $ 125,321 $ 114,086 GAAP gross margin 68 % 73 % 68 % 70 % 69 % Non-GAAP GAAP gross profit $ 34,184 $ 33,925 $ 27,931 $ 125,321 $ 114,086 Adjustments to reconcile GAAP to non-GAAP gross margin: Stock-based compensation expense 1,336 1,366 1,147 5,087 4,169 Amortization of acquired technology 583 584 586 2,335 2,266 Non-GAAP gross profit $ 36,103 $ 35,875 $ 29,664 $ 132,743 $ 120,521 Non-GAAP gross margin 72 % 77 % 72 % 74 % 73 % PDF SOLUTIONS, INC. RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED) (In thousands, except per share amounts) Three months ended Year ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 GAAP net income $ 539 $ 2,206 $ 887 $ 4,057 $ 3,105 Adjustments to reconcile GAAP net income to non-GAAP net income: Stock-based compensation expense 6,507 6,730 5,923 25,047 21,484 Amortization of acquired technology under costs of revenues 583 584 586 2,335 2,266 Amortization of other acquired intangible assets 182 196 306 896 1,285 Expenses for certain legal proceedings (1) 69 — 75 69 2,600 Non-recurring legal, tax and accounting service-related costs 940 — — 940 209 Loss on damaged equipment in-transit, net of (recovery) from previously written-off property and equipment 663 (55) — 608 (105) Tax impact of valuation allowance for deferred tax assets and reconciling items (2) 375 262 (2,060) (1,335) (2,374) Non-GAAP net income $ 9,858 $ 9,923 $ 5,717 $ 32,617 $ 28,470 GAAP net income per diluted share $ 0.01 $ 0.06 $ 0.02 $ 0.10 $ 0.08 Non-GAAP net income per diluted share $ 0.25 $ 0.25 $ 0.15 $ 0.84 $ 0.73 Weighted average common shares used in GAAP net income per diluted share calculation 39,104 39,105 38,814 39,047 38,937 Weighted average common shares used in non-GAAP net income per diluted share calculation 39,104 39,105 38,814 39,047 38,937 (1) Represents legal costs and expenses related to certain litigation and an arbitration proceeding which are expected to continue until these matters are resolved. (2) The difference between the GAAP and non-GAAP income tax provisions is primarily due to the valuation allowance on a GAAP basis and non-GAAP adjustments. For example, on a GAAP basis, the Company does not receive a deferred tax benefit for foreign tax credits or research and development credits after the valuation allowance. The Company's non-GAAP tax rate and resulting non-GAAP tax expense is not calculated with a full U.S. federal or state valuation allowance due to the Company's cumulative non-GAAP income and management's conclusion that it is more likely than not to utilize its net deferred tax assets (DTAs). Each reporting period, management evaluates the need for a valuation allowance and may place a valuation allowance against its U.S. net DTAs on a non-GAAP basis if it concludes it is more likely than not that it will not be able to utilize some or all of its U.S. DTAs on a non-GAAP basis.
