Technology
ePlus Reports Second Quarter and First Half Financial Results Fiscal Year 2025
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2 weeks agoon
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Second Quarter Gross Profit And Gross Margin Improved Year Over Year
Second Quarter Fiscal Year 2025
•
Net sales decreased 12.3% to $515.2 million; technology business net sales decreased 13.8% to $493.3 million; service revenues increased 46.0% to $103.7 million.
•
Technology business gross billings decreased 5.6% to $808.2 million.
•
Consolidated gross profit increased 2.5% to $148.0 million.
•
Consolidated gross margin was 28.7%, compared with 24.6% last year.
•
Net earnings decreased 4.1% to $31.3 million.
•
Adjusted EBITDA decreased 2.7% to $52.1 million.
•
Diluted earnings per share decreased 4.1% to $1.17. Non-GAAP diluted earnings per share decreased 2.9% to $1.36.
First Half Fiscal Year 2025
•
Net sales decreased 8.8% to $1,059.7 million; technology business net sales decreased 9.6% to $1,028.8 million; service revenues increased 31.3% to $181.9 million.
•
Technology business gross billings decreased 3.3% to $1,641.9 million.
•
Consolidated gross profit decreased 1.5% to $282.5 million.
•
Consolidated gross margin increased to 26.7%, compared with 24.7% last year.
•
Net earnings decreased 11.8% to $58.6 million.
•
Adjusted EBITDA decreased 11.3% to $95.3 million.
•
Diluted earnings per share decreased 12.0% to $2.19. Non-GAAP diluted earnings per share decreased 11.0% to $2.50.
HERNDON, Va., Nov. 12, 2024 /PRNewswire/ — ePlus inc. (NASDAQ: PLUS), a leading provider of technology and financing solutions, today announced financial results for the three months and six months ended September 30, 2024, the second quarter of its 2025 fiscal year.
Management Comment
“Our results in the second quarter reflect the ongoing evolution of the industry towards ratable and subscription revenue models and slower product sales, partially offset by the continued strength of our services-led approach,” said Mark Marron, president and CEO of ePlus. “Notably, we experienced a year on year increase in gross profit and gross margin on lower gross billings and net sales, driven by higher margin services revenues, which increased 46%, and strong financing revenues.
“During the quarter, we acquired Bailiwick Services, LLC, which will help us drive core to edge computing solutions for our enterprise customers. In addition, we continue to see a shift towards services and more software and subscription-based sales as a percentage of the whole, and these are often recognized ratably or on a net basis creating a net sales headwind. On the product front, artificial intelligence (AI) continues to progress, and our customers are exploring advantages to integrate AI into various aspects of their businesses.”
Mr. Marron continued, “We ended the quarter with a solid balance sheet. Our healthy cash position enabled us to fund the acquisition of Bailiwick in the quarter, with ample additional liquidity to support our capital allocation priorities as we work to deliver increased shareholder value.”
Second Quarter Fiscal Year 2025 Results
For the second quarter ended September 30, 2024, as compared to the second quarter ended September 30, 2023:
Consolidated net sales decreased 12.3% to $515.2 million, from $587.6 million.
Technology business net sales decreased 13.8% to $493.3 million, from $571.9 million as lower product sales were offset by higher service revenues. Technology business gross billings decreased 5.6% to $808.2 million from $856.5 million.
Product sales declined 22.2% to $389.6 million, from $500.9 million, due to lower demand combined with a shift in mix. Product margin was 22.9%, up from 20.9% last year due to a higher proportion of third-party maintenance, software subscriptions and services sold in the current quarter, which are recorded on a net basis.
Professional service revenues increased 61.7% from last year to $61.9 million, from $ 38.3 million, due in part to the acquisition of Bailiwick Services, LLC. Gross margins remained consistent at 41.3%.
Managed service revenues increased 27.6% to $41.8 million due to ongoing growth in these offerings, including Enhanced Maintenance Support and Cloud services. Gross profit from managed services increased 21.0% from last year due to the increase in revenues. Managed service margins declined to 29.5% from 31.1%.
Financing business segment net sales increased 39.7% to $21.9 million, from $15.7 million, primarily due to increases in transactional gains. Gross profit in the financing business segment increased $7.1 million, from $13.6 million last year to $20.7 million this year, due to the increase in net sales.
Consolidated gross profit increased 2.5% to $148.0 million, from $144.4 million. Consolidated gross margin was 28.7%, compared with last year’s gross margin of 24.6%.
Consolidated operating expenses were $105.3 million, up 5.8% from $99.5 million last year, primarily due to increases in salaries and benefits from additional headcount, as well as increases in acquisition-related expenses of $1.0 million. Our headcount at the end of the quarter was 2,323, up 446 from a year ago. The acquisition of Bailiwick Services LLC on August 19, 2024 added 441 employees, and Peak Resources on January 27, 2024 added 24 employees. Of the 446 additional employees, 328 were customer facing employees.
Consolidated operating income decreased 4.8% to $42.7 million and earnings before tax decreased 3.7% to $43.3 million. Other income was $0.6 million compared to $0.1 million last year, as higher interest income of $2.4 million was offset by foreign exchange losses of $1.8 million.
Our effective tax rate for the current quarter was 27.7%, slightly higher than the prior year quarter of 27.4%.
Net earnings decreased 4.1% to $31.3 million.
Adjusted EBITDA in the technology business declined 17.3% and increased 68.9% in the financing business segment, and when combined, resulted in consolidated adjusted EBITDA decreasing 2.7% to $52.1 million.
Diluted earnings per common share was $1.17 for the second quarter ended September 30, 2024, compared with $1.22 in the prior year quarter. Non-GAAP diluted earnings per common share was $1.36 for the second quarter ended September 30, 2024, compared with $1.40 last year.
First Half Fiscal Year 2025 Results
For the six months ended September 30, 2024, as compared to the six months ended September 30, 2023:
Consolidated net sales decreased 8.8% to $1,059.7 million, from $1,161.8 million.
Technology business net sales decreased 9.6% to $1,028.8 million, from $1,137.6 million due to lower product sales, offset by higher service revenues. Technology business gross billings decreased 3.3% to $1,641.9 million from $1,698.5 million.
Product sales decreased 15.2% to $846.9 million, from $999.1 million, due to declines in customer demand, as well as a shift in product mix. Gross profit from sales of product decreased 13.1% to $187.9 million due to lower sales combined with a shift in mix towards third-party maintenance and services, which are recorded on a net basis.
Professional service revenues increased 34.3% due in part to the acquisition of Bailiwick Services, LLC. Gross margins increased slightly to 41.4%, from 41.3% for the same period in the prior year.
Managed service revenues increased 27.8% to $82.7 million, from $64.7 million, due to ongoing growth in these offerings, including Enhanced Maintenance Support, Cloud and Service Desk services. Gross profit from managed services increased 25.9% to $25.2 million, from $20.0 million, due to the increase in revenues. Gross margins declined slightly to 30.4% from 30.9% last year.
Financing business segment net sales increased 28.0% to $30.9 million, from $24.2 million, due to higher transactional gains and portfolio earnings offset by lower post-contract earnings. Gross profit in the financing business segment increased $8.4 million primarily due to the increase in sales.
Consolidated gross profit decreased to $282.5 million from $286.6 million. Consolidated gross margin was 26.7%, compared with last year’s gross margin of 24.7%, due to higher product margins.
Operating expenses were $204.3 million, up 4.5% from $195.4 million last year, primarily due to increases in salaries and benefits as a result of increases in personnel and acquisition related amortization and expenses from the acquisition of Bailiwick Services LLC and Peak Resources.
Consolidated operating income decreased 14.3% to $78.2 million. Earnings before tax decreased 11.7% to $80.8 million. Other income was $2.7 million compared to $0.3 million last year, as higher interest income of $4.9 million was offset by foreign exchange losses of $2.3 million.
Our effective tax rate for the current year period was 27.4%, slightly higher than last year’s 27.3%.
Net earnings decreased 11.8% to $58.6 million.
Adjusted EBITDA decreased 11.3% to $95.3 million.
Diluted earnings per common share was $2.19 for the six months ended September 30, 2024, compared with $2.49 in the prior year. Non-GAAP diluted earnings per common share was $2.50 for the six months ended September 30, 2024, compared with $2.81 last year.
Balance Sheet Highlights
As of September 30, 2024, cash and cash equivalents decreased to $187.5 million from $253.0 million as of March 31, 2024, due to the acquisition of Bailiwick Services, LLC, repurchases of our common stock, and working capital needs. Inventory decreased 32.8% to $93.9 million as of September 30, 2024, compared with $139.7 million as of March 31, 2024. Total stockholders’ equity as of September 30, 2024 was $947.0 million, compared with $901.8 million as of March 31, 2024. Total shares outstanding were 26.8 million as of September 30, 2024, and 27.0 million as of March 31, 2024.
Fiscal Year Guidance
Fiscal year 2025 net sales are now expected to be similar to fiscal year 2024. The adjusted EBITDA range is now expected to be $195 million to $205 million. ePlus cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of unusual gains and losses, the occurrence of matters creating GAAP tax impacts, fluctuations in interest expense or interest income and share-based compensation, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to the ePlus’ results computed in accordance with GAAP. Accordingly, ePlus is unable to provide a reconciliation of GAAP net earnings to adjusted EBITDA for the full year 2025 forecast.
Summary and Outlook
“While we’ve seen some softening in enterprise demand due to prior absorption of purchases and global economic uncertainty, our outlook continues to reflect our prioritized investments in key high-growth categories such as AI, security and related software and services to drive long-term sustainable growth. Our customer relationships are strong and their feedback for our AI Ignite offering reinforces our view that clients are at the early stage of adoption for these solutions. We are well positioned to serve this emerging demand, and over the longer term, our strong balance sheet supports our ability to build on the success that we have achieved over the past several years,” concluded Mr. Marron.
Recent Corporate Developments/Recognitions
In the second quarter of its 2025 fiscal year, ePlus:
Achieved renewal of the Cisco Environmental Sustainability Specialization.Acquired Bailiwick Services, LLC.Announced Storage-as-a-Service Leveraging NetApp.
Conference Call Information
ePlus will hold a conference call and webcast at 4:30 p.m. ET on November 12, 2024:
Date:
November 12, 2024
Time:
4:30 p.m. ET
Audio Webcast (Live & Replay):
https://events.q4inc.com/attendee/569325154
Live Call:
(888) 596-4144 (toll-free/domestic)
(646) 968-2525 (international)
Archived Call:
(800) 770-2030 (toll-free/domestic)
(609) 800-9909 (international)
Conference ID:
5394845# (live call and replay)
A replay of the call will be available approximately two hours after the call through November 13, 2024. A transcript of the call will also be available on the ePlus Investor Relations website at https://www.eplus.com/investors.
About ePlus inc.
ePlus is a customer-first, services-led, and results-driven industry leader offering transformative technology solutions and services to provide the best customer outcomes. Offering a full portfolio of solutions, including artificial intelligence, security, cloud and data center, networking, and collaboration, as well as managed, consultative and professional services, ePlus works closely with organizations across many industries to successfully navigate business challenges. With a long list of industry-leading partners and more than 2,300 employees, our expertise has been honed over more than three decades, giving us specialized yet broad levels of experience and knowledge. ePlus is headquartered in Virginia, with locations in the United States, United Kingdom, Europe, and Asia‐Pacific. For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com. Connect with ePlus on LinkedIn, X, Facebook, and Instagram.
ePlus, Where Technology Means More®.
ePlus® and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. The names of other companies and products mentioned herein may be the trademarks of their respective owners.
Forward-looking statements
Statements in this press release that are not historical facts may be deemed to be “forward-looking statements,” including, among other things, statements regarding the future financial performance of ePlus. Actual and anticipated future results may vary materially due to certain risks and uncertainties, including, without limitation, exposure to fluctuation in foreign currency rates, interest rates, and inflation, including as a result of national and international political instability fostering uncertainty and volatility in the global economy, which may cause increases in our costs and wages and our ability to increase prices to our customers, negative impacts to the arrangements that have pricing commitments over the term of an agreement and/or the loss of key lenders or constricting credit markets as a result of changing interest rates, which may result in adverse changes in our results of operations and financial position; significant adverse changes in, reductions in, or loss of one or more of our larger volume customers or vendors; reliance on third-parties to perform some of our service obligations to our customers, and the reliance on a small number of key vendors in our supply chain with whom we do not have long-term supply agreements, guaranteed price agreements, or assurance of stock availability; our ability to remain secure during a cybersecurity attack or other information technology (“IT”) outage, including disruptions in our, our vendors or other third party’s IT systems and data and audio communication networks; our ability to secure our own and our customers’ electronic and other confidential information, while maintaining compliance with evolving data privacy and regulatory laws and regulations and appropriately providing required notice and disclosure of cybersecurity incidents when and if necessary; ongoing remote work trends, and the increase in cybersecurity attacks that have occurred while employees work remotely and our ability to adequately train our personnel to prevent a cyber event; the possibility of a reduction of vendor incentives provided to us; our dependence on key personnel to maintain certain customer relationships, and our ability to hire, train, and retain sufficient qualified personnel by recruiting and retaining highly skilled, competent personnel, and vendor certifications; risks relating to use or capabilities of artificial intelligence (“AI”) including social and ethical risks; our ability to manage a diverse product set of solutions, including AI products and services, in highly competitive markets with a number of key vendors; changes in the IT industry and/or rapid changes in product offerings, including the proliferation of the cloud, infrastructure as a service (“IaaS”), software as a service (“SaaS”), platform as a service (“PaaS”), and AI; supply chain issues, including a shortage of IT products, may increase our costs or cause a delay in fulfilling customer orders, or increase our need for working capital, or delay completing professional services, or purchasing IT products or services needed to support our internal infrastructure or operations, resulting in an adverse impact on our financial results; our inability to identify acquisition candidates, perform sufficient due diligence prior to completing an acquisition, successfully integrate a completed acquisition, or identify an opportunity for or successfully complete a business disposition, may affect our earnings; our ability to raise capital, maintain or increase as needed our lines of credit with vendors or our floor plan facility, obtain debt for our financing transactions, or the effect of those changes on our common stock price; our ability to implement comprehensive plans for the integration of sales forces, cost containment, asset rationalization, systems integration, and other key strategies; and other risks or uncertainties detailed in our reports filed with the Securities and Exchange Commission. All information set forth in this press release is current as of the date of this release and ePlus undertakes no duty or obligation to update this information either as a result of new information, future events or otherwise, except as required by applicable U.S. securities law.
ePlus inc. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
September 30, 2024
March 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$187,528
$253,021
Accounts receivable—trade, net
587,998
644,616
Accounts receivable—other, net
76,102
46,884
Inventories
93,857
139,690
Financing receivables—net, current
136,357
102,600
Deferred costs
61,874
59,449
Other current assets
58,663
27,269
Total current assets
1,202,379
1,273,529
Financing receivables and operating leases—net
90,561
79,435
Deferred tax asset
5,633
5,620
Property, equipment and other assets
104,081
89,289
Goodwill
203,233
161,503
Other intangible assets—net
94,167
44,093
TOTAL ASSETS
$1,700,054
$1,653,469
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Current liabilities:
Accounts payable
$281,927
$315,676
Accounts payable—floor plan
115,660
105,104
Salaries and commissions payable
45,163
43,696
Deferred revenue
143,334
134,596
Non-recourse notes payable—current
28,970
23,288
Other current liabilities
34,868
34,630
Total current liabilities
649,922
656,990
Non-recourse notes payable—long-term
9,723
12,901
Other liabilities
93,412
81,799
TOTAL LIABILITIES
753,057
751,690
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 per share par value; 2,000 shares
authorized; none outstanding
–
–
Common stock, $0.01 per share par value; 50,000 shares
authorized; 26,798 outstanding at September 30, 2024 and
26,952 outstanding at March 31, 2024
276
274
Additional paid-in capital
187,330
180,058
Treasury stock, at cost, 750 shares at September 30, 2024 and
447 shares at March 31, 2024
(47,461)
(23,811)
Retained earnings
801,627
742,978
Accumulated other comprehensive income—foreign currency
translation adjustment
5,225
2,280
Total Stockholders’ Equity
946,997
901,779
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$1,700,054
$1,653,469
ePlus inc. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
2024
2023
Net sales
Product
$411,505
$516,609
$877,854
$1,023,265
Services
103,667
71,002
181,856
138,521
Total
515,172
587,611
1,059,710
1,161,786
Cost of sales
Product
301,436
398,234
661,593
787,138
Services
65,745
45,012
115,645
88,010
Total
367,181
443,246
777,238
875,148
Gross profit
147,991
144,365
282,472
286,638
Selling, general, and administrative
98,971
92,652
192,579
182,950
Depreciation and amortization
5,765
5,630
10,584
10,422
Interest and financing costs
537
1,220
1,122
2,071
Operating expenses
105,273
99,502
204,285
195,443
Operating income
42,718
44,863
78,187
91,195
Other income (expense), net
579
117
2,652
307
Earnings before taxes
43,297
44,980
80,839
91,502
Provision for income taxes
11,987
12,316
22,190
24,991
Net earnings
$31,310
$32,664
$58,649
$66,511
Net earnings per common share—basic
$1.18
$1.23
$2.20
$2.50
Net earnings per common share—diluted
$1.17
$1.22
$2.19
$2.49
Weighted average common shares outstanding—basic
26,567
26,624
26,604
26,588
Weighted average common shares outstanding—diluted
26,676
26,679
26,750
26,659
Technology Business
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
Change
2024
2023
Change
(in thousands)
(in thousands)
Net sales
Product
$389,613
$500,937
(22.2 %)
$846,925
$999,103
(15.2 %)
Professional services
61,900
38,270
61.7 %
99,179
73,826
34.3 %
Managed services
41,767
32,732
27.6 %
82,677
64,695
27.8 %
Total
493,280
571,939
(13.8 %)
1,028,781
1,137,624
(9.6 %)
Gross profit
Product
89,359
104,749
(14.7 %)
187,864
216,140
(13.1 %)
Professional services
25,583
15,796
62.0 %
41,038
30,520
34.5 %
Managed services
12,339
10,194
21.0 %
25,173
19,991
25.9 %
Total
127,281
130,739
(2.6 %)
254,075
266,651
(4.7 %)
Selling, general, and administrative
94,050
88,593
6.2 %
184,134
175,693
4.8 %
Depreciation and amortization
5,765
5,602
2.9 %
10,584
10,366
2.1 %
Interest and financing costs
–
661
(100.0 %)
–
1,211
(100.0 %)
Operating expenses
99,815
94,856
5.2 %
194,718
187,270
4.0 %
Operating income
$27,466
$35,883
(23.5 %)
$59,357
$79,381
(25.2) %
Gross billings
$808,229
$856,495
(5.6 %)
$1,641,937
$1,698,465
(3.3) %
Adjusted EBITDA
$36,804
$44,496
(17.3 %)
$76,305
$95,445
(20.1) %
Technology Business Gross Billings by Type
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
Change
2024
2023
Change
(in thousands)
(in thousands)
Cloud
$195,852
$200,637
(2.4 %)
$437,126
$459,561
(4.9 %)
Networking
219,797
311,671
(29.5 %)
501,325
588,316
(14.8 %)
Security
163,565
143,340
14.1 %
315,448
290,683
8.5 %
Collaboration
46,717
51,770
(9.8 %)
79,693
73,931
7.8 %
Other
72,545
78,571
(7.7 %)
117,137
148,332
(21.0 %)
Product gross billings
698,476
785,989
(11.1 %)
1,450,729
1,560,823
(7.1 %)
Service gross billings
109,752
70,506
55.7 %
191,207
137,642
38.9 %
Total gross billings
$808,228
$856,495
(5.6 %)
$1,641,936
$1,698,465
(3.5 %)
Technology Business Net Sales by Type
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
Change
2024
2023
Change
(in thousands)
(in thousands)
Cloud
$121,336
$135,068
(10.2 %)
$258,567
$307,112
(15.8 %)
Networking
186,776
268,636
(30.5 %)
421,516
513,824
(18.0 %)
Security
41,209
51,886
(20.6 %)
89,214
97,682
(8.7 %)
Collaboration
17,988
27,083
(33.6 %)
38,887
40,039
(2.9 %)
Other
22,304
18,264
22.1 %
38,741
40,446
(4.2 %)
Total product
389,613
500,937
(22.2 %)
846,925
999,103
(15.2 %)
Professional services
61,900
38,270
61.7 %
99,179
73,826
34.3 %
Managed services
41,767
32,732
27.6 %
82,677
64,695
27.8 %
Total net sales
$493,280
$571,939
(13.8 %)
$1,028,781
$1,137,624
(9.6 %)
Technology Business Net Sales by Customer End Market
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
Change
2024
2023
Change
(in thousands)
(in thousands)
Telecom, Media, & Entertainment
$108,870
$124,306
(12.4 %)
$226,423
$265,641
(14.8 %)
Technology
54,988
110,948
(50.4 %)
164,094
184,351
(11.0 %)
SLED
97,687
94,906
2.9 %
189,783
204,311
(7.1 %)
Healthcare
78,235
72,022
8.6 %
153,515
158,678
(3.3 %)
Financial Services
34,759
69,885
(50.3 %)
84,484
135,575
(37.7 %)
All other
118,741
99,872
18.9 %
210,482
189,068
11.3 %
Total net sales
$493,280
$571,939
(13.8 %)
$1,028,781
$1,137,624
(9.6 %)
Financing Business Segment
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
Change
2024
2023
Change
(in thousands)
(in thousands)
Portfolio earnings
$4,864
$3,339
45.7 %
$9,025
$6,412
40.8 %
Transactional gains
14,502
6,949
108.7 %
15,795
8,228
92.0 %
Post-contract earnings
2,105
5,038
(58.2 %)
5,420
8,672
(37.5 %)
Other
421
346
21.7 %
689
850
(18.9 %)
Net sales
21,892
15,672
39.7 %
30,929
24,162
28.0 %
Gross profit
20,710
13,626
52.0 %
28,397
19,987
42.1 %
Selling, general, and administrative
4,921
4,059
21.2 %
8,445
7,257
16.4 %
Depreciation and amortization
–
28
(100.0 %)
–
56
(100.0 %)
Interest and financing costs
537
559
(3.9 %)
1,122
860
30.5 %
Operating expenses
5,458
4,646
17.5 %
9,567
8,173
17.1 %
Operating income
$15,252
$8,980
69.8 %
$18,830
$11,814
59.4 %
Adjusted EBITDA
$15,319
$9,072
68.9 %
$18,961
$12,002
58.0 %
ePlus inc. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP INFORMATION
We included reconciliations below for the following non-GAAP financial measures: (i) Adjusted EBITDA, (ii) Adjusted EBITDA for business segments, (iii) non-GAAP Net Earnings and (iv) non-GAAP Net Earnings per Common Share – Diluted.
We define Adjusted EBITDA as net earnings calculated in accordance with US GAAP, adjusted for the following: interest expense, depreciation and amortization, share-based compensation, acquisition and integration expenses, provision for income taxes, and other income (expense). Adjusted EBITDA presented for the technology business segments and the financing business segment is defined as operating income calculated in accordance with US GAAP, adjusted for interest expense, share-based compensation, acquisition and integration expenses, and depreciation and amortization. We consider the interest on notes payable from our financing business segment and depreciation expense presented within cost of sales, which includes depreciation on assets financed as operating leases, to be operating expenses. As such, they are not included in the amounts added back to net earnings in the Adjusted EBITDA calculation.
Non-GAAP net earnings and non-GAAP net earnings per common share – diluted are based on net earnings calculated in accordance with GAAP, adjusted to exclude other income (expense), share based compensation, and acquisition related amortization expense, and the related tax effects.
We use the above non-GAAP financial measures as supplemental measures of our performance to gain insight into our operating performance and performance trends. We believe that such non-GAAP financial measures provide management and investors a useful measure for period-to-period comparisons of our business and operating results by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that such non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results.
Our use of non-GAAP information as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, non-GAAP net earnings and non-GAAP net earnings per common share or similarly titled measures differently, which may reduce their usefulness as comparative measures.
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
2024
2023
(in thousands)
Consolidated
Net earnings
$31,310
$32,664
$58,649
$66,511
Provision for income taxes
11,987
12,316
22,190
24,991
Share based compensation
2,597
2,414
5,452
4,619
Acquisition related expenses
1,043
–
1,043
–
Interest and financing costs
–
661
–
1,211
Depreciation and amortization [1]
5,765
5,630
10,584
10,422
Other (income) expense, net [2]
(579)
(117)
(2,652)
(307)
Adjusted EBITDA
$52,123
$53,568
$95,266
$107,447
Technology Business Segments
Operating income
$27,466
$35,883
$59,357
$79,381
Share based compensation
2,530
2,350
5,321
4,487
Depreciation and amortization [1]
5,765
5,602
10,584
10,366
Acquisition related expenses
1,043
–
1,043
–
Interest and financing costs
–
661
–
1,211
Adjusted EBITDA
$36,804
$44,496
$76,305
$95,445
Financing Business Segment
Operating income
$15,252
$8,980
$18,830
$11,814
Share based compensation
67
64
131
132
Depreciation and amortization [1]
–
28
–
56
Adjusted EBITDA
$15,319
$9,072
$18,961
$12,002
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
2024
2023
(in thousands)
GAAP: Earnings before taxes
$43,297
$44,980
$80,839
$91,502
Share based compensation
2,597
2,414
5,452
4,619
Acquisition related expenses
1,043
–
1,043
–
Acquisition related amortization expense [3]
4,447
4,023
8,197
7,492
Other (income) expense [2]
(579)
(117)
(2,652)
(307)
Non-GAAP: Earnings before provision for income taxes
50,805
51,300
92,879
103,306
GAAP: Provision for income taxes
11,987
12,316
22,190
24,991
Share based compensation
730
665
1,529
1,272
Acquisition related expenses
293
–
293
–
Acquisition related amortization expense [3]
1,246
1,106
2,293
2,058
Other (income) expense, net [2]
(163)
(32)
(743)
(84)
Tax benefit (expense) on restricted stock
184
79
492
216
Non-GAAP: Provision for income taxes
14,277
14,134
26,054
28,453
Non-GAAP: Net earnings
$36,528
$37,166
$66,825
$74,853
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
2024
2023
GAAP: Net earnings per common share – diluted
$1.17
$1.22
$2.19
$2.49
Share based compensation
0.07
0.07
0.15
0.13
Acquisition related expenses
0.03
–
0.03
–
Acquisition related amortization expense [3]
0.12
0.11
0.22
0.20
Other (income) expense, net [2]
(0.02)
–
(0.07)
–
Tax benefit (expense) on restricted stock
(0.01)
–
(0.02)
(0.01)
Total non-GAAP adjustments – net of tax
0.19
0.18
0.31
0.32
Non-GAAP: Net earnings per common share – diluted
$1.36
$1.40
$2.50
$2.81
[1] Amount consists of depreciation and amortization for assets used internally.
[2] Interest income and foreign currency transaction gains and losses.
[3] Amount consists of amortization of intangible assets from acquired businesses.
View original content to download multimedia:https://www.prnewswire.com/news-releases/eplus-reports-second-quarter-and-first-half-financial-results-fiscal-year-2025-302303251.html
SOURCE EPLUS INC.
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Technology
5-Axis CNC Machining Centers Market to Grow by USD 792.5 Million (2024-2028), Driven by Self-Optimized Cutting, AI Transforming Market Landscape – Technavio
Published
49 minutes agoon
November 25, 2024By
NEW YORK, Nov. 25, 2024 /PRNewswire/ — Report with the AI impact on market trends – The global 5-axis CNC machining centers market size is estimated to grow by USD 792.5 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 6.09% during the forecast period. Self-optimized machine cutting is driving market growth, with a trend towards reduction of changeover time for 5-axis cnc machines. However, highly capital-intensive market poses a challenge.Key market players include DMG MORI Co. Ltd., Doosan Corp., FANUC Corp., Gebr. Heller Maschinenfabrik GmbH, GF Machining Solutions AG, GROB WERKE GmbH and Co. KG, Haas Automation Inc., Hardinge Inc., Hurco Companies Inc., Hyundai Motor Co., JTEKT Corp., Jyoti CNC Automation Ltd., Makino Inc., Maschinenfabrik Berthold Hermle AG, Mitsubishi Electric Corp., Okuma Corp, SCM GROUP Spa, Siemens AG, Starrag Group, and Yamazaki Mazak Corp..
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5-Axis Cnc Machining Centers Market Scope
Report Coverage
Details
Base year
2023
Historic period
2018 – 2022
Forecast period
2024-2028
Growth momentum & CAGR
Accelerate at a CAGR of 6.09%
Market growth 2024-2028
USD 792.5 million
Market structure
Fragmented
YoY growth 2022-2023 (%)
5.64
Regional analysis
APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution
APAC at 42%
Key countries
US, China, Germany, Japan, and France
Key companies profiled
DMG MORI Co. Ltd., Doosan Corp., FANUC Corp., Gebr. Heller Maschinenfabrik GmbH, GF Machining Solutions AG, GROB WERKE GmbH and Co. KG, Haas Automation Inc., Hardinge Inc., Hurco Companies Inc., Hyundai Motor Co., JTEKT Corp., Jyoti CNC Automation Ltd., Makino Inc., Maschinenfabrik Berthold Hermle AG, Mitsubishi Electric Corp., Okuma Corp, SCM GROUP Spa, Siemens AG, Starrag Group, and Yamazaki Mazak Corp.
Market Driver
Five-axis CNC machining centers are advanced manufacturing solutions that offer precision, adaptability, and efficiency for industrial operations. These systems utilize linear axes for X, Y, and Z movements, as well as rotating axes for A and B, enabling multi-sided machining of complex parts. Trends in this market include the medical industry’s demand for high-precision components, aerospace and defense’s need for lightweight structures, and hybrid manufacturing combining subtractive processes with additive technologies. CNC programming, toolpath optimization, and specialized training are essential for effective operation. Precision engineering sectors, such as aerospace, automotive, and medical, benefit from the ability to produce complex geometries with minimal setup times and cycle time. Real-time monitoring, smart instruments, and multifaceted tools ensure manufacturing efficiency and quality improvement. Vertical machining centers and horizontal machining centers cater to various industries, including petroleum, metal fabrication, commercial aviation, military systems, electric vehicles, and general machinery. Industrial robots further enhance manufacturing processes by automating material handling and labor safety. Five-axis technology’s adaptability and precision make it an indispensable part of modern manufacturing processes, driving innovation in various industries.
The 5-axis CNC machining centers market is experiencing increased demand due to the significance of reducing changeover times to enhance productivity. Changeover time, the interval between the completion of one workpiece and the setup of the next, significantly impacts productivity negatively. To mitigate this issue, manufacturers are focusing on trends such as parallel operation. During parallel operation, workpieces are prepared in separate working areas while the CNC machine executes an operation on another workpiece. This approach reduces idle time and ultimately boosts productivity, making 5-axis CNC machines an attractive investment for businesses.
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Market Challenges
The 5-axis CNC machining centers market is witnessing significant growth due to the increasing demand for advanced machining systems in various industries. Precision and adaptability are key factors driving this trend, as these systems enable the production of complex parts with high precision and efficiency. Industrial operations in sectors like aerospace, defense, medical, and automotive require intricate components with minimal setup times and optimal cycle times. Linear axes and rotating axes enable multi-sided machining, reducing the need for multiple setups and increasing manufacturing efficiency. The medical industry and high-precision components sector particularly benefit from this technology, as do industries producing complex geometries for applications in fields like aerospace and defense. Challenges in this market include the need for specialized training, toolpath optimization, and CNC programming. Hybrid manufacturing, combining subtractive processes with additive manufacturing, is a potential solution. Vertical and horizontal machining centers, industrial robots, and smart instruments are essential tools in this advanced manufacturing landscape. Safety, real-time monitoring, and cutting parameters are crucial considerations for labor safety and quality improvement. Changeover time, material handling, and manufacturing process optimization are also essential aspects of this dynamic market. The future of 5-axis CNC machining centers lies in advanced manufacturing solutions, incorporating the latest technology to meet the demands of diverse industries.The 5-axis CNC machining centers market is a significant investment for manufacturers, with raw materials accounting for approximately 48% of the overall manufacturing cost. Raw material prices, including iron, steel, aluminum, brass, and copper, significantly impact market profitability. Fluctuations in these prices necessitate frequent adjustments to pricing strategies, adding to operational expenses. Furthermore, workforce training and consultant hiring add to the financial burden. The need for continuous technological advancements also increases research and development costs, contributing to the market’s high manufacturing costs.
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Segment Overview
This 5-axis cnc machining centers market report extensively covers market segmentation by
End-user 1.1 Automotive1.2 Aerospace1.3 Metal fabrication1.4 OthersProduct 2.1 Vertical 5-axis CNC machining centers2.2 Horizontal 5-axis CNC machining centersGeography 3.1 APAC3.2 North America3.3 Europe3.4 South America3.5 Middle East and Africa
1.1 Automotive- The global automotive industry is experiencing significant changes due to regulatory framework updates, technological advancements, and evolving customer preferences. OEMs are responding by launching new vehicle categories, such as micro-SUVs and mid-size pickup trucks, to cater to diverse customer segments. Strict emission regulations and fuel efficiency standards are pushing automakers to adopt advanced manufacturing technologies, including 5-axis CNC machining centers. These systems enable cost-effective production of automotive parts and components with high precision. Despite the popularity of 3-axis machining, 5-axis CNC systems are increasingly preferred for turning and milling operations. The increasing demand for automobiles, particularly in oil-importing countries like India and China, will drive the growth of the 5-axis CNC machining centers market in the forecast period. The low gasoline prices are also fueling investment in the automotive sector, leading to higher adoption of these advanced manufacturing technologies.
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Research Analysis
The 5-axis CNC machining centers market represents the latest evolution in advanced machining systems, offering unparalleled precision and adaptability for industrial operations. These systems enable the production of complex parts with intricate geometries, reducing setup times and increasing efficiency. 5-axis machining centers utilize both linear axes for X, Y, and Z movements, as well as rotating axes for B and C movements, allowing for multi-sided machining. Industries such as medical, aerospace, petroleum, and metal fabrication benefit greatly from these high-precision components. Hybrid manufacturing, combining 5-axis machining with other processes like additive manufacturing, further expands the capabilities of these systems. Vertical and horizontal machining centers are common types, each with their unique advantages. Cycle time and material handling are critical factors in optimizing manufacturing processes, while quality improvement and changeover time are essential for maintaining competitiveness. Computer Numerical Control (CNC) technology ensures precise tool movement, and the manufacturing process is streamlined through efficient setup and production processes.
Market Research Overview
The 5-axis CNC machining centers market encompasses advanced machining systems designed for manufacturing complex parts with high precision and adaptability. Industrial operations rely on these systems to produce intricate components with minimal setup times and increased manufacturing efficiency. 5-axis technology incorporates linear axes for X, Y, and Z movements, as well as rotating axes for B and C axes, enabling multisided machining and manufacturing of complex geometries. Industries such as medical, aerospace and defense, petroleum, and automotive benefit from the production of high precision components using these systems. Hybrid manufacturing, subtractive processes, and CNC programming are integral to the manufacturing process, requiring specialized training for operators. Real-time monitoring, toolpath optimization, and smart instruments enhance the production process, reducing cycle time and changeover time. Vertical and horizontal machining centers cater to various industries, including aerospace, defense, commercial aviation, electric vehicles, and general machinery. The integration of industrial robots and advanced manufacturing solutions further streamlines manufacturing processes, ensuring labor safety and quality improvement.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
End-userAutomotiveAerospaceMetal FabricationOthersProductVertical 5-axis CNC Machining CentersHorizontal 5-axis CNC Machining CentersGeographyAPACNorth AmericaEuropeSouth AmericaMiddle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
View original content to download multimedia:https://www.prnewswire.com/news-releases/5-axis-cnc-machining-centers-market-to-grow-by-usd-792-5-million-2024-2028-driven-by-self-optimized-cutting-ai-transforming-market-landscape—technavio-302314040.html
SOURCE Technavio
Technology
Modal Signs Strategic Collaboration Agreement with AWS to Deliver Accelerated Generative AI Solutions
Published
49 minutes agoon
November 25, 2024By
NEW YORK, Nov. 25, 2024 /PRNewswire/ — Modal, a serverless compute platform designed for AI workloads, today announced it signed a Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to help businesses — from startups to enterprises — develop and deploy artificial intelligence (AI) products faster through its purpose-built platform for graphics processing unit (GPU)-accelerated workloads.
Modal’s platform enables AI teams to quickly spin up GPU-enabled containers in as little as one second, facilitating rapid iteration and seamless autoscaling for production workloads. By leveraging the security, resiliency, and scalability of AWS, Modal has experienced rapid growth, attracting generative AI startups seeking flexible, powerful compute without the need for long-term commitments or extensive infrastructure management.
“We’re excited to deepen our collaboration with AWS, as their infrastructure empowers us to better serve the growing ecosystem of AI companies,” said Erik Bernhardsson, founder and CEO of Modal. “Together, we aim to accelerate the development and deployment of the next generation of AI applications by providing a seamless, scalable platform that works with the AWS services our customers already rely on.”
Modal’s platform abstracts away the complexities of GPU infrastructure management, allowing AI teams to focus on building innovative solutions. By combining Modal’s seamless developer experience with the breadth and depth of AWS services, customers can leverage the best of both worlds – a purpose-built platform for AI workloads backed by the proven scalability, performance, and security of AWS.
Mike Cohen, Head of AI & ML Engineering at Substack, a Modal customer, shared, “Our ML team loves Modal because it accelerates research and development, and deployment, while seamlessly integrating with our AWS-based infrastructure. This strategic collaboration will make it easier for us to build even more ambitious machine learning (ML) and AI features in the future.”
“At AWS, we’re committed to supporting innovative companies that drive technological advancement and address critical customer needs,” said Jon Jones, Vice President and Global Head of AWS Startups. “Modal’s traction in providing flexible, scalable, and immediate access to GPU resources for AI companies is impressive. We believe Modal’s offering has the potential to empower many leading AI companies to build and scale their solutions more effectively. We look forward to working closely with Modal to help them deliver positive outcomes for their customers.”
This collaboration underscores the value of Modal and AWS to provide flexibility and unlock greater business value for customers across industries. As part of this collaboration, Modal will enhance its enterprise offering, including listing in AWS Marketplace and investing in technical integrations like AWS PrivateLink, to better serve customers with specific security and privacy requirements. Modal will also showcase its container technology for AI at AWS re:Invent in December 2024.
For more information please visit: https://modal.com/
Media Contact: press@modal.com
View original content:https://www.prnewswire.com/news-releases/modal-signs-strategic-collaboration-agreement-with-aws-to-deliver-accelerated-generative-ai-solutions-302315795.html
SOURCE Modal
Technology
Defense IT Spending Market to Grow by USD 23.53 Billion (2024-2028), Driven by Autonomous Systems Development, Market Evolution Powered by AI – Technavio
Published
49 minutes agoon
November 25, 2024By
NEW YORK, Nov. 25, 2024 /PRNewswire/ — Report on how AI is driving market transformation – The global defense IT spending market size is estimated to grow by USD 23.53 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.49% during the forecast period. Development of autonomous systems is driving market growth, with a trend towards adoption of artificial intelligence (AI) and machine learning (ML). However, issues related to digital sovereignty poses a challenge.Key market players include Accenture Plc, Amazon.com Inc., BAE Systems Plc, CRON AI, Cubic Corp., CyAmast Pty Ltd., Dell Technologies Inc., General Dynamics Corp., Hewlett Packard Enterprise Co., Holo Light GmbH, International Business Machines Corp., Kratos Defense and Security Solutions Inc., Leidos Holdings Inc., ManTech International Corp., Microsoft Corp., Northrop Grumman Corp., Oracle Corp., Pennant International Group PLC, Science Applications International Corp. Inc., and Palantir Technologies Inc..
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Forecast period
2024-2028
Base Year
2023
Historic Data
2018 – 2022
Segment Covered
Type (Service, Software, and Hardware), Application (Cyber security, IT infrastructure, Logistic and asset management, and Others), and Geography (North America, APAC, Europe, Middle East and Africa, and South America)
Region Covered
North America, APAC, Europe, Middle East and Africa, and South America
Key companies profiled
Accenture Plc, Amazon.com Inc., BAE Systems Plc, CRON AI, Cubic Corp., CyAmast Pty Ltd., Dell Technologies Inc., General Dynamics Corp., Hewlett Packard Enterprise Co., Holo Light GmbH, International Business Machines Corp., Kratos Defense and Security Solutions Inc., Leidos Holdings Inc., ManTech International Corp., Microsoft Corp., Northrop Grumman Corp., Oracle Corp., Pennant International Group PLC, Science Applications International Corp. Inc., and Palantir Technologies Inc.
Key Market Trends Fueling Growth
Defense IT spending continues to grow as Defense Forces, Homeland Security, and Paramilitary Forces prioritize modernization. Key areas of focus include Cybersecurity to protect National defense data from Cyberattacks, Communication Systems for Secure communications, and Intelligence Technologies for data analysis. IT Infrastructure, Cloud Computing, and Software solutions are essential for Defense operations and Military Capabilities. Geopolitical Tensions fuel the demand for advanced IT Solutions such as 5G, Artificial Intelligence, and Autonomous Systems. Defense IT systems require Cutting edge technologies like Decision science platforms, Sensor systems, Actuators, and Control systems for Battlefield management in a Network centric environment. IT Spending on hardware, services, and IT technologies for Unmanned Systems, Smart weapons, and Virtual/Augmented Reality technology also increase. Government Policies and Defense Modernization initiatives drive investments in Healthcare IT, IoT analytics, and Military infrastructures. Overall, Defense IT spending remains a critical area of investment for enhancing Military capabilities and responding to evolving threats.
The global defense IT spending market is witnessing a significant increase in the adoption of artificial intelligence (AI) and machine learning (ML) technologies. These innovations are gaining popularity among governments and defense organizations due to their potential to bolster military capabilities, streamline decision-making processes, and fortify national security. Autonomous systems, such as robotic systems, unmanned vehicles, and drones, are among the primary applications of AI and ML in the defense sector. These systems, which operate without human intervention, can carry out essential military tasks, including target detection, surveillance, reconnaissance, and combat operations. The integration of AI and ML in defense IT spending is a strategic investment for enhancing military readiness and effectiveness.
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Market Challenges
Defense IT spending continues to grow as Defense Forces, Homeland Security, and Paramilitary Forces invest in advanced IT solutions to enhance their capabilities. Challenges include securing cybersecurity for national defense data and secure communications. IT infrastructure, cloud computing, and data analytics are key areas of focus. Defense IT systems require the latest software, hardware, and services to support defense operations and military actions. Geopolitical tensions increase the need for modernization, with IT spending on intelligence technologies, 5G, artificial intelligence, and autonomous systems. Cyberattacks threaten defense IT infrastructure, making cybersecurity a top priority. IT technologies like sensors, VR/AR technology, and IoT analytics support battlefield management and decision-making in a network centric environment. Defense IT spending also covers healthcare, unmanned systems, and military infrastructures. Smart weapons, actuators, control systems, and flight simulators are essential for military readiness. Government policies and defense modernization initiatives drive IT investments in defense IT systems and IT technologies. Overall, defense IT spending is critical for maintaining military capabilities and staying ahead of the curve in the digital transformation.In the defense sector, the increasing use of digital technology, including augmented reality, necessitates prioritizing data privacy and protection from cyber threats. However, the involvement of cross-border data transfers in defense IT spending poses challenges due to the need for digital sovereignty. Dependency on foreign technology providers for IT systems and infrastructure can limit ownership and control over military capabilities, potentially jeopardizing digital sovereignty. Developing domestic defense IT capabilities is essential to maintain digital sovereignty, but it requires a significant investment of time and resources.
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Segment Overview
This defense it spending market report extensively covers market segmentation by
Type1.1 Service1.2 Software1.3 HardwareApplication 2.1 Cyber security2.2 IT infrastructure2.3 Logistic and asset management2.4 OthersGeography 3.1 North America3.2 APAC3.3 Europe3.4 Middle East and Africa3.5 South America
1.1 Service- The global defense IT spending market encompasses various service segments catering to defense organizations’ unique IT needs. These segments include Consulting Services, Systems Integration, Application Development and Maintenance, Managed Services, Cybersecurity Services, Training and Support Services, and Data Analytics Services. Military firms rely on Consulting Services for strategic advice on digital transformation, cybersecurity, data analytics, and technology adoption. Systems Integration ensures seamless communication and interoperability by integrating defense IT systems, tools, and software. Application Development and Maintenance create and manage specialized software applications for defense companies. Managed Services outsource IT tasks to vendors for cost savings and productivity gains. Cybersecurity Services protect critical infrastructure and private military data from cyber threats. Training and Support Services optimize IT system usage and performance. Data Analytics Services extract valuable insights from defense data for informed decision-making and operational efficiency improvements. These essential services enable defense organizations to adapt to technology landscapes, enhance capabilities, and drive the growth of the defense IT spending market.
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Research Analysis
The Defense IT Spending market is a critical sector that continues to evolve, driven by the increasing demand for advanced technologies to support Defense Forces, Civilian Forces, Homeland Security, and other government agencies. This market encompasses various domains, including Cybersecurity, Communication Systems, Intelligence Technologies, IT Infrastructure, Cloud Computing, Data Analytics, and more. Cutting-edge technologies such as Cybersecurity solutions, 5G networks, Artificial Intelligence (AI), Autonomous systems, and Internet of Things (IoT) analytics are increasingly being adopted to enhance security, improve communication, and optimize decision-making in a network centric environment. Additionally, Defense IT infrastructure supports the development of Smart weapons, Battlefield management systems, Decision science platforms, and Healthcare solutions. Communication Systems enable secure and reliable communication between forces, while Intelligence Technologies provide real-time data analysis and actionable insights. VR/AR technology, Flight simulators, and Sensors are also integral to the Defense IT Spending market, enabling advanced training and simulation capabilities. Overall, this market is undergoing a digital transformation, with a focus on integrating the latest technologies to enhance operational effectiveness and improve mission success.
Market Research Overview
The Defense IT Spending market is a critical sector that focuses on providing advanced IT solutions to Defense Forces, Homeland Security, and Paramilitary Forces worldwide. This market encompasses various IT sectors, including Cybersecurity, Communication Systems, Intelligence Technologies, IT Infrastructure, Cloud Computing, Data Analytics, and more. Defense IT systems are essential for military capabilities, ensuring secure communications, battlefield management, and decision-making in a network centric environment. The market is driven by Geopolitical Tensions, Defense Modernization, and Government Policies, leading to increased IT Spending on cutting-edge technologies such as 5G, Artificial Intelligence, Autonomous Systems, and Digital Transformation. Cybersecurity is a significant concern, with Defense Forces and National Defense Data at risk from cyberattacks. IT Solutions in this sector include Software, Hardware, and Services to protect against threats and ensure secure data transfer. Communication Systems, including sensors, actuators, and control systems, are crucial for military operations, while Unmanned Systems and VR/AR technology provide advanced training capabilities. Defense IT infrastructure also includes IT technologies for healthcare, military infrastructures, and IoT analytics for military actions. Smart weapons, sensors, and actuators are integral components of defense operations, while IT technologies such as flight simulators and battlefield management systems enable effective military decision-making. Overall, the Defense IT Spending market is a dynamic and evolving sector that continues to adapt to the changing needs of defense organizations worldwide.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
TypeServiceSoftwareHardwareApplicationCyber SecurityIT InfrastructureLogistic And Asset ManagementOthersGeographyNorth AmericaAPACEuropeMiddle East And AfricaSouth America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
View original content to download multimedia:https://www.prnewswire.com/news-releases/defense-it-spending-market-to-grow-by-usd-23-53-billion-2024-2028-driven-by-autonomous-systems-development-market-evolution-powered-by-ai—technavio-302314285.html
SOURCE Technavio
5-Axis CNC Machining Centers Market to Grow by USD 792.5 Million (2024-2028), Driven by Self-Optimized Cutting, AI Transforming Market Landscape – Technavio
Modal Signs Strategic Collaboration Agreement with AWS to Deliver Accelerated Generative AI Solutions
Defense IT Spending Market to Grow by USD 23.53 Billion (2024-2028), Driven by Autonomous Systems Development, Market Evolution Powered by AI – Technavio
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