Category: Technology

Apple reaches a $490M settlement to resolve a class-action lawsuit that alleged Tim Cook defrauded shareholders in 2019 by hiding falling iPhone demand in China

Jonathan Stempel / Reuters:

— Apple (AAPL.O) has reached a $490 million settlement to resolve a class-action lawsuit that alleged Chief Executive Tim Cook defrauded shareholders by concealing falling demand for iPhones in China.

A preliminary settlement was filed on Friday with the U.S. District Court in Oakland, California, and requires approval by U.S. District Judge Yvonne Gonzalez Rogers.

It stemmed from Apple’s unexpected announcement on Jan. 2, 2019 that the iPhone maker would slash its quarterly revenue forecast by up to $9 billion, blaming U.S.-China trade tensions.

Cook had told investors on an Nov. 1, 2018, analyst call that although Apple faced sales pressure in markets such as Brazil, India, Russia and Turkey, where currencies had weakened, “I would not put China in that category.”

Apple told suppliers a few days later to curb production.

The lowered revenue forecast was Apple’s first since the iPhone’s launch in 2007. Shares of Apple fell 10% the next day, wiping out $74 billion of market value.

Apple and its lawyers did not immediately respond to requests for comment on the ruling.

The Cupertino, California-based company denied liability, but settled to avoid the cost and distraction of litigation, court papers show.

Shawn Williams, a partner at Robbins Geller Rudman & Dowd representing the shareholders, called the settlement an “outstanding result” for the class.

The settlement covers investors who bought Apple shares in the two months between Cook’s comments and the revenue forecast.

Apple posted $97 billion of net income in its latest fiscal year, and its payout equals a little under two days of profit.

Last June, Rogers refused to dismiss the lawsuit.

She found it plausible to believe Cook had been discussing Apple’s sales outlook and not currency changes, and said Apple knew China’s economy was slowing and demand could fall.

The lead plaintiff is the Norfolk County Council as Administering Authority of the Norfolk Pension Fund, located in Norwich, England.

Lawyers for the shareholders may seek fees of up to 25% of the settlement amount.

Apple’s share price has more than quadrupled since January 2019, giving the company a more than $2.6 trillion market value.

The case is In re Apple Inc Securities Litigation, U.S. District Court, Northern District of California, No. 19-02033.

— Techmeme

Business Lifestyle Regulations & Security Science Technology

inTEST expands electronic test capabilities with acquisition of Alfamation S.p.A.

Post author By Michelle Dryden
Post date March 14, 2024
No Comments on inTEST expands electronic test capabilities with acquisition of Alfamation S.p.A.

In line with the Company’s 5-Point Strategy, Alfamation augments inTEST’s automated test solutions and extends its geographic market reach
Alfamation brings strong test equipment engineering and production capabilities for developing innovative test systems and solutions for electronics, micro-optics and optoelectronics manufacturing
Designs and manufactures test solutions used for automotive infotainment, telematics and central control systems, as well as biometric monitoring equipment, mobile communications and wafer-level optical components
Alfamation’s annual revenue of approximately $25 million increases inTEST’s scale while providing deeper penetration into key target markets
Conference call to discuss acquisition scheduled for Wednesday, March 13at 8:30 a.m. ET

MT. LAUREL, N.J. — (BUSINESS WIRE) — inTEST Corporation (NYSE American: INTT), a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets which include automotive/EV, defense/aerospace, industrial, life sciences, security, and semiconductor (“semi”), announced on Tuesday that it has acquired Alfamation S.p.A. (“Alfamation”), a leading global provider of state-of-the-art test and measurement solutions for the automotive, life sciences and specialty consumer electronics markets. Terms of the acquisition are being filed separately with the Securities and Exchange Commission. Alfamation will become a part of the Electronic Test division within inTEST.

Nick Grant, President and CEO, commented, “We identified the opportunity with Alfamation through our disciplined pursuit for acquisitions that will enhance our innovative test and process technology solutions and further strengthen our position in key target markets. We believe this acquisition is an excellent fit for our Electronic Test division and advances all dimensions of our 5-Point Strategy. Alfamation will deepen our presence in automotive/EV and life science markets, expand our exposure in consumer electronics, extend our geographic reach with a sizable footprint in Europe, and widen our portfolio of products and solutions. Additionally, Alfamation brings exceptional engineering talent and a strong management team that culturally aligns with inTEST’s mission to provide innovative, engineered solutions that address high-value challenges of our customers.”

Alfamation was established in 1991. Headquartered in Milan, Italy, the business also has a small sales and service subsidiary based in Suzhou City, China. Alfamation designs, builds, and supports a wide range of products, from individual functional test modules to fully automated systems for production quality control and product development. Offerings include Alfamation’s Hyperion™, a functional test platform that addresses a broad range of test requirements from wireless communication telematics through automotive infotainment and computer control units. Alfamation’s range of automated test solutions also includes wafer-level optical component testers (WALOT™) and fully automated display and instrument cluster testers with integrated robotics for haptic and touch test functionality (Pixelshooter™).

Alfamation is well known in the automotive test and measurement industry for Flexmedia XM®, its family of specialty test tools. This is a modular, robust and cost-effective solution for building flexible, scalable, functional testers for applications that include audio and video generators and analyzers, automotive ethernet and communication interfaces, and analog measurements.

At current exchange rates, Alfamation’s annual revenue in 2023 was approximately $25 million and had backlog at December 31, 2023 of approximately $15 million. The Company expects the acquisition to be accretive in 2025. Alfamation has generated healthy, double-digit, annual revenue growth over the last few years.

Updating Full Year 2024 Guidance

As a result of the acquisition, revenue for full year 2024 is expected to be in the range of $145 million to $155 million. The acquisition is expected to be dilutive to earnings per diluted share in 2024, but accretive to non-GAAP adjusted earnings per diluted share⁽¹⁾ due to the anticipated impacts associated with the amortization of intangible assets.

Given the timing of the acquisition, the impact to first quarter 2024 results from operations are expected to be nominal.

Conference Call and Webcast

The Company will host a conference call and webcast tomorrow, March 13, 2024, at 8:30 a.m. ET to discuss the acquisition. A question-and-answer session will follow. To listen to the live call, dial (201) 689-8263. In addition, the webcast and slide presentation may be found at www.intest.com/investor-relations.

A telephonic replay will be available from 11:30 a.m. ET on the day of the call through Wednesday, March 20, 2024. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13745130. The webcast replay can be accessed via the investor relations section of www.intest.com, where a transcript will also be posted once available.

About inTEST Corporation

inTEST Corporation is a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets including automotive/EV, defense/aerospace, industrial, life sciences, and security, as well as both the front-end and back-end of the semiconductor manufacturing industry. Backed by decades of engineering expertise and a culture of operational excellence, inTEST solves difficult thermal, mechanical, and electronic challenges for customers worldwide while generating strong cash flow and profits. inTEST’s strategy leverages these strengths to grow organically and with acquisitions through the addition of innovative technologies, deeper and broader geographic reach, and market expansion. For more information, visit www.intest.com.

Forward-Looking Non-GAAP Financial Measures

This release includes certain forward-looking non-GAAP financial measures, including adjusted earnings per diluted share. Forward-looking adjusted earnings per diluted share is derived by dividing estimated adjusted net earnings by estimated diluted weighted average shares outstanding. We have provided these forward-looking non-GAAP financial measures because management uses such measures to make operational decisions, to forecast future operational results, and for comparison with our business plan, historical operating results and the operating results of our peers. Forward-looking non-GAAP financial measures have limitations as analytical tools and should not be viewed in isolation or as a substitute for GAAP measures of earnings. The Company has not quantified forward-looking adjusted earnings per diluted share or provided a reconciliation to comparable GAAP measures because the Company cannot do so without unreasonable efforts.

Key Performance Indicators

Management uses backlog as a key performance metric to analyze and measure the Company’s financial performance and results of operations. Management uses backlog as a measure of current and future business and financial performance, and it may not be comparable with measures provided by other companies. Backlog is calculated on the basis of firm purchase orders we receive for which revenue has not yet been recognized. Management believes tracking backlog is useful as it often times is a leading indicator of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.

Given that backlog is an operational measure and that the Company’s methodology for calculating backlog does not meet the definition of a non-GAAP measure, as that term is defined by the U.S. Securities and Exchange Commission, a quantitative reconciliation for backlog is not required or provided.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, such as statements of the Company’s plans, strategies and intentions, or our future performance or goals, that are based upon management’s current expectations. These forward-looking statements can often be identified by the use of forward-looking terminology such as “believe,” “expects,” “further,” “expand,” “extend,” “widen,” “will,” “plan,” “potential,” “anticipates,” “target,” or similar terminology. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, any mentioned in this press release as well as the Company’s ability to execute on its 5-Point Strategy, realize the potential benefits of acquisitions and successfully integrate any acquired operations, including the operations of Alfamation, grow the Company’s presence in its key target and international markets, manage supply chain challenges, convert backlog to sales and to ship product in a timely manner; the success of the Company’s strategy to diversify its markets; the impact of inflation on the Company’s business and financial condition; indications of a change in the market cycles in the semi market or other markets served; changes in business conditions and general economic conditions both domestically and globally including rising interest rates and fluctuation in foreign currency exchange rates; changes in the demand for semiconductors; access to capital and the ability to borrow funds or raise capital to finance potential acquisitions or for working capital; changes in the rates and timing of capital expenditures by the Company’s customers; and other risk factors set forth from time to time in the Company’s Securities and Exchange Commission filings, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement made by the Company in this press release is based only on information currently available to management and speaks to circumstances only as of the date on which it is made. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

¹ Estimated adjusted earnings per diluted share is a forward-looking non-GAAP financial measure. Further information can be found under “Forward-Looking Non-GAAP Financial Measures.”

Contacts

inTEST Corporation
Duncan Gilmour

Chief Financial Officer and Treasurer

Tel: (856) 505-8999

Investors:
Deborah K. Pawlowski

Kei Advisors LLC

dpawlowski@keiadvisors.com
Tel: (716) 843-3908

Tags Business, New Jersey

Business Digital - AI & Apps Economics Lifestyle Perspectives Technology

RevenueCat survey nearly 30K mobile subscription apps, finds that only 17.2% of them to reach $1K in monthly revenue and only 3.5% will get to $10K

Investors know that most startups fail, but something that may be less understood is how few mobile apps actually make money.

Sarah Perez / TechCrunch:

— According to a new analysis of the subscription app economy from mobile subscription toolkit provider RevenueCat, the top 5% of apps generate 200 times the revenue of the bottom quartile after their first year, while the median monthly revenue an app generates after 12 months is less than $50 USD.

The “State of Subscription Apps” report offers a bird’s-eye view into the subscription app universe, as RevenueCat has nearly 30,000 apps using its platform’s tools to manage their monetization. Outside of Apple and Google, that makes RevenueCat the largest collection of subscription app developers on one platform.

This report specifically looks at data from over 29,000 apps and over 18,000 developers who collectively generate over $6.7 billion in tracked revenue and have over 290 million subscribers.

After crunching its data, the company found that only 17.2% of apps will reach even $1,000 in monthly revenue, but after they hit that point, the odds of them growing further increase. For instance, 59% of the apps that reach $1,000 will go on to reach $2,500 and 60% of the apps that reach $2,500 will make it to $5,000. But what may be more surprising is that only 3.5% of apps will reach $10,000 in revenue — the figure that an indie developer may need to hit in order to devote themselves full-time to app development or their mobile-first startup.

There are some differences in apps’ success when you narrow things to the category level, however.

Health and fitness apps generate more revenue after a year, performing at least twice as well as all the other categories combined, both at the bottom quartile and in the top 5%. Travel and productivity apps struggle the most, with even the top 5% of apps in the category making less than $1,000 per month after a year’s time on the app stores.

While it’s perhaps not as surprising that many apps don’t make money, given how many are launched as side projects, seeing the actual monetization figures could be a shock to those who think they have what it takes to beat the odds.

— Techmeme

Business Economics Lifestyle Science Technology

inTEST to restate 3rd quarter and first 9 months 2023 financial statements

Post author By Michelle Dryden
Post date March 12, 2024
No Comments on inTEST to restate 3rd quarter and first 9 months 2023 financial statements

The restatement pertains to deferral of revenue related to purchases on behalf of certain customers associated with “last time buys” of discontinued material/components for potential future orders.

Preliminary indications are that the third quarter 2023 restatement is expected to result in a decrease in revenue of approximately $1.7 million and an increase in deferred revenue on the balance sheet by the same amount. After also deferring associated costs and the tax effect, net income is expected to be approximately $700,000 lower for the third quarter 2023. After giving effect to this change, earnings per diluted share for the third quarter 2023 as previously reported is expected to be reduced from $0.24 to $0.19.

The deferral of revenue is also expected to have a small impact on previously announced preliminary fourth quarter results. Fourth quarter 2023 revenue is now expected to be approximately $27.9 million with net earnings of $1.5 million, or $0.12 per diluted share.

The Company intends to amend and file its third quarter 2023 10-Q/A as soon as practical. Investors should no longer rely upon the Company’s previously released financial statements for the third quarter and nine months ended September 30, 2023. Similarly, prior related press releases, earnings releases, and investor communications describing the Company’s financial statements for those periods and preliminary results reported for the fourth quarter ended December 31, 2023, should no longer be relied upon. The Company also intends to file its 2023 10-K as soon as practical and expects to host a conference call following the filing and release of fourth quarter 2023 financial results. Based on the matters underlying the restatement, the Company expects to report a material weakness in its internal control over financial reporting.

About inTEST Corporation

Preliminary, Unaudited Financial Disclosures

The data presented above is preliminary and unaudited, based upon our estimates, and subject to further internal review by management and compilation of actual results. Our closing procedures for the year and quarter ended December 31, 2023, are not yet complete. Our management’s estimates are based upon preliminary information currently available from our business segments and extrapolation from that information. While we expect that our results will be consistent with these preliminary and unaudited estimates, our actual results may differ materially from these preliminary estimates.

This preliminary financial information is not a comprehensive statement of our financial results for this period, and our actual results may differ materially from these estimates due to the completion of our financial closing procedures, final adjustments, and other developments that may arise between now and the time the closing procedures for the fiscal year and quarter are completed.

All the data presented above has been prepared by and is the responsibility of our management. Our independent registered public accounting firm has not completed its audit procedures with respect to our accompanying preliminary financial data. Accordingly, our independent registered public accounting firm does not express an opinion or any other form of assurance with respect to this data.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, such as statements of the Company’s plans, strategies and intentions, or our future performance or goals, that are based upon management’s current expectations. These forward-looking statements can often be identified by the use of forward-looking terminology such as “expects,” “intends,” “may,” “plan,” “potential,” “preliminary,” “estimate,” “extrapolate,” or similar terminology. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, any mentioned in this press release as well as the Company’s ability to execute on its 5-Point Strategy, achieve high single-digit growth in 2023, realize the potential benefits of acquisitions and successfully integrate any acquired operations, grow the Company’s presence in its key target and international markets, manage supply chain challenges, convert backlog to sales and to ship product in a timely manner; the success of the Company’s strategy to diversify its markets; the impact of inflation on the Company’s business and financial condition; indications of a change in the market cycles in the semi market or other markets served; changes in business conditions and general economic conditions both domestically and globally including rising interest rates and fluctuation in foreign currency exchange rates; changes in the demand for semiconductors; access to capital and the ability to borrow funds or raise capital to finance potential acquisitions or for working capital; changes in the rates and timing of capital expenditures by the Company’s customers; and other risk factors set forth from time to time in the Company’s Securities and Exchange Commission filings, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement made by the Company in this press release is based only on information currently available to management and speaks to circumstances only as of the date on which it is made. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

Contacts

inTEST Corporation
Duncan Gilmour

Chief Financial Officer and Treasurer

Tel: (856) 505-8999

Investors:
Deborah K. Pawlowski

Kei Advisors LLC

dpawlowski@keiadvisors.com
Tel: (716) 843-3908

Tags Business, New Jersey

Digital - AI & Apps Lifestyle Regulations & Security Science Technology

More than 100 scientists sign agreement to prevent their AI-aided research that designs new proteins from enhancing the development of bioweapons

— An agreement by more than 90 said, however, that artificial intelligence’s benefit to the field of biology would exceed any potential harm.

Cade Metz / New York Times:

Dario Amodei, chief executive of the high-profile A.I. start-up Anthropic, told Congress last year that new A.I. technology could soon help unskilled but malevolent people create large-scale biological attacks, such as the release of viruses or toxic substances that cause widespread disease and death.

— Researchers are trying to tamp down fears of A.I.-created bioweapons. Credit: Kenny Holston/The New York Times

Senators from both parties were alarmed, while A.I. researchers in industry and academia debated how serious the threat might be.

Now, over 90 biologists and other scientists who specialize in A.I. technologies used to design new proteins — the microscopic mechanisms that drive all creations in biology — have signed an agreement that seeks to ensure that their A.I.-aided research will move forward without exposing the world to serious harm.

The biologists, who include the Nobel laureate Frances Arnold and represent labs in the United States and other countries, also argued that the latest technologies would have far more benefits than negatives, including new vaccines and medicines.

“As scientists engaged in this work, we believe the benefits of current A.I. technologies for protein design far outweigh the potential for harm, and we would like to ensure our research remains beneficial for all going forward,” the agreement reads.

The agreement does not seek to suppress the development or distribution of A.I. technologies. Instead, the biologists aim to regulate the use of equipment needed to manufacture new genetic material.

This DNA manufacturing equipment is ultimately what allows for the development of bioweapons, said David Baker, the director of the Institute for Protein Design at the University of Washington, who helped shepherd the agreement.

“Protein design is just the first step in making synthetic proteins,” he said in an interview. “You then have to actually synthesize DNA and move the design from the computer into the real world — and that is the appropriate place to regulate.”

— David Baker of the University of Washington said regulation should focus on the physical tools that would be needed to create a bioweapon. Credit: Evan McGlinn for The New York Times

The agreement is one of many efforts to weigh the risks of A.I. against the possible benefits. As some experts warn that A.I. technologies can help spread disinformation, replace jobs at an unusual rate and perhaps even destroy humanity, tech companies, academic labs, regulators and lawmakers are struggling to understand these risks and find ways of addressing them.

Dr. Amodei’s company, Anthropic, builds large language models, or L.L.M.s, the new kind of technology that drives online chatbots. When he testified before Congress, he argued that the technology could soon help attackers build new bioweapons.

But he acknowledged that this was not possible today. Anthropic had recently conducted a detailed study showing that if someone were trying to acquire or design biological weapons, L.L.M.s were marginally more useful than an ordinary internet search engine.

Dr. Amodei and others worry that as companies improve L.L.M.s and combine them with other technologies, a serious threat will arise. He told Congress that this was only two to three years away.

— Techmeme

Business Digital - AI & Apps Education Lifestyle News Now! Regulations & Security Technology

Google rolls out updates to its Search ranking to counter the spread of AI content in results, which includes down-ranking content that summarizes others’ work

There are always new ways to try to game Google with crappy content — and now the company is fighting back against the worst of it

David Pierce / The Verge:

— Google is rolling out a few new changes to its ranking systems in search, which are designed to help surface good content in your results and hide some of the worst and most cynical stuff on the web.

The company says that it is doing a better job of downranking content that exists only to summarize other content — which can sometimes be normal SEO stuff but is also increasingly a job for generative AI tools— and in combatting some of the tricks people use to trick its ranking systems.

There are always people trying to manipulate their way to the top of Google results. That’s just a fact of the web and a fact of life for Google’s search teams. Google is always making changes to its ranking algorithms, too, in an effort to improve search results. We never hear about most of those changes.

“You only see the ones that sort of slipped by the controls, as it were,” says Pandu Nayak, a VP of search at Google. “Unfortunately, these are not things you can just wave a magic wand and get rid of.”

For Google to announce the changes it’s making signals two things. First, that these are big changes that could meaningfully change your search experience — Nayak says that Google’s measurements show a reduction in “unhelpful content” by up to 40 percent. And second, that Google is sending a message to the web: your spammy, sketchy behavior ends now.

— Google is sending a message to the web: your spammy, sketchy behavior ends now

Nayak lays out three examples of what Google now considers spammy behavior and intends to downrank. The first is content at scale: the sites that create thousands of low-quality articles a day, either through low-paid contractors or AI generators, and target that content at search results. Nayak points to obituary spam — which The Verge’s Mia Sato recently wrote about — as an example of a problem to be solved here.

The second spammy behavior is what Nayak calls “site reputation abuse.” This is when an otherwise respectable website rents out part of its site for spammy nonsense; I won’t name and shame anyone here, but you’ve surely seen the sites that make you wonder why they have coupons or why there’s a whole part of the site that seems irrelevant and AI-generated. The third is “expired domain abuse,” which is when someone buys an abandoned but high-ranking domain and fills it with crummy content that then jumps to the top of search. The current state of The Hairpin is one example of how this can happen, which Wired has covered well in recent weeks.

For those engaging in site reputation abuse, Nayak says Google is giving the sites 60 days to cut it out before it makes the ranking changes. The others go into effect now. Google has a spam problem, it knows it, and it’s trying to shut it down. “The healthy, high-quality ecosystem is exactly the one that gets affected when spammers and low-quality purveyors of information get control of ranking,” Nayak says.

The job is not done, of course. The reckoning over AI-generated content — what it means, who wants it, how it should rank — is only just beginning and will cause Google plenty of internal headaches as it both tries to bring AI to everyone and tries to save the web from being overrun by it. (Even Google’s own search engine is increasingly an AI machine.) And there will always be new, sneakier ways to game your way to the top of search results. This is a headache of Google’s own making: most of the chum on the web exists entirely to game Google, and so Google will always be one step behind.

— Techmeme

Business Healthcare International & World Lifestyle Regulations & Security Technology

A BlackCat ransomware gang website shows takedown notice; the UK NCA denies involvement, experts suggest an exit scam after an alleged UnitedHealth payment

— A website used by hackers responsible for a breach at UnitedHealth Group (UNH.N) has been replaced by a notice saying it has been seized by international law enforcement.

Reuters:

WASHINGTON, (Reuters) — The hackers responsible for the breach at UnitedHealth Group (UNH.N), opens new tab appear to have pulled a disappearing act on Tuesday, leaving their cybercriminal associates in the lurch and replacing their old website with a bogus statement from law enforcement.

The corporate logo of the UnitedHealth Group appears on the side of one of their office buildings in Santa Ana, California, U.S., April 13, 2020. REUTERS/Mike Blake/File Photo Purchase Licensing Rights

The U.S. insurer disclosed on Feb. 21 that Blackcat hacking gang – also known as ALPHV – had perpetrated a cyberattack on its technology unit Change Healthcare, causing disruptions across the U.S. healthcare system.

A message posted to Blackcat’s website said it had been impounded “as part of a coordinated law enforcement action” by U.S. authorities and other law enforcement agencies. Among the logos of non-American agencies involved were those of Europol and Britain’s National Crime Agency.

The FBI declined comment and Europol did not return messages, but a National Crime Agency spokesperson said: “I can confirm any recent disruption to ALPHV infrastructure is not a result of NCA activity.”

Blackcat has not responded to Reuters requests for comment in several days.

Security experts said the law enforcement denial and other clues made it look like the hackers had simply decided to shut up shop.

“This appears to be a classic exit scam,” said researcher Will Thomas. In an exit scam, hackers pretend to be knocked out of commission only to quietly pocket their partners’ money and start over under a new name.

— Techmeme

Business Economics Lifestyle Regulations & Security Technology

Insider cybersecurity risk startup Dtex Systems raises $50M Series E from CapitalG at $400M post-money valuation

Post author By Editor
Post date March 5, 2024
No Comments on Insider cybersecurity risk startup Dtex Systems raises $50M Series E from CapitalG at $400M post-money valuation

Sam Sabin / Axios:

CapitalG, Alphabet’s venture capital fund, is investing $50 million in Series E funding in insider risk company Dtex Systems, the companies first tell Axios.

Why it matters: The tech giant’s investment gives a vote of confidence to Dtex’s bet that insider risk will become the next big cybersecurity market.

CapitalG has invested in major cybersecurity companies like CrowdStrike and ZScaler.

Zoom in: Dtex is now valued at more than $400 million after this new funding, a company spokesperson told Axios.

The company — which has now raised a total of $138 million —plans to use the funds to expand its U.S.-based engineering teams and marketing operations around the world.
Dtex CEO Marshall Heilman told Axios the company is working to expand its client base to more U.S. government customers and Fortune 500 companies.
James Luo, a partner at CapitalG, will join Dtex’s board of directors.

How it works: Dtex uses machine learning to analyze network activity and company endpoints to flag potential insider risks, such as disgruntled employees stealing data or hacked employee accounts.

Flagged activity could include employees logging into their accounts from an unusual location, exfiltrating a large amount of corporate files and resetting an account password too many times.

The big picture: CapitalG’s investment comes as cybersecurity startup funding hits a five-year low, as total funding dropped 50% between 2022 and 2023, according to Crunchbase News.

Dtex last raised funding four years ago in a $17.5 million Series D round led by Northgate Capital.
Heilman joined the company as CEO in December after nearly 20 years at Google Cloud’s Mandiant.

What they’re saying: “I had always known that CapitalG was my white whale, they were the ones I wanted to land if it was possible,” Heilman said.

“I wanted someone who is going to be in the business and helping us while not trying to take over the business,” he added. “CapitalG was the perfect medium to do that.”

Between the lines: Insider risk has become a growing area of interest for companies.

46% of organizations plan to increase their spending on insider threats in 2024, according to a recent report from Dtex and the Ponemon Institute.

What’s next: Heilman added that while Dtex is focused on insider threat, he is eyeing product areas where the company could grow in using the data it’s collected from its insider risk monitoring tools.

— Techmeme

Business Digital - AI & Apps Economics Lifestyle Regulations & Security Science Technology

inTEST delays fourth quarter and full year 2023 earnings release and investor conference call; provides preliminary fourth quarter results and 2024 guidance

The Company requires additional time to complete the year-end audit and review process. The Company expects to report its results coincident with, or prior to, the filing of its Annual Report on Form 10-K for the year ended Dec. 31, 2023.

Preliminary, Unaudited Fourth Quarter 2023 Results

Fourth quarter 2023 revenue was approximately $28.4 million with net earnings of approximately $1.7 million, or $0.14 per diluted share. Cash generated from operations in the fourth quarter was $4.7 million. Orders in the fourth quarter were $27.5 million.

First Quarter and Full Year 2024 Guidance

Revenue for the first quarter of 2024 is expected to be in the range of $28 million to $30 million with gross margin of approximately 46%. First quarter 2024 earnings per diluted share is expected to be in the range of $0.08 to $0.13.

Revenue for full year 2024 is expected to be in the range of $125 million to $130 million.

The foregoing guidance is based on management’s current views with respect to operating and market conditions and customers’ forecasts. It also assumes macroeconomic conditions remain unchanged through the end of the year and does not consider any extraordinary non-operating expenses that may occur from time to time. Actual results may differ materially from what is provided here today because of, among other things, the factors described under “Forward-Looking Statements” below.

About inTEST Corporation

Key Performance Indicators

Management uses orders as a key performance metric to analyze and measure the Company’s financial performance and results of operations. Management uses orders as a measure of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent written communications received from customers requesting the Company to provide products and/or services. Management believes tracking orders is useful as it often is a leading indicator of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.

Given that orders is an operational measure and that the Company’s methodology for calculating orders does not meet the definition of a non-GAAP measure, as that term is defined by the U.S. Securities and Exchange Commission, a quantitative reconciliation for it is not required or provided.

Preliminary, Unaudited Financial Disclosures

The data presented above is preliminary and unaudited, based upon our estimates, and subject to further internal review by management and compilation of actual results. Our closing procedures for the year and quarter ended December 31, 2023 are not yet complete. Our management’s estimates are based upon preliminary information currently available from our business segments and extrapolation from that information. While we expect that our results will be consistent with these preliminary and unaudited estimates, our actual results may differ materially from these preliminary estimates.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, such as statements of the Company’s plans, strategies and intentions, or our future performance or goals, that are based upon management’s current expectations. These forward-looking statements can often be identified by the use of forward-looking terminology such as “assume,” “believe,” “estimate,’ “expects,” “may,” “will,” “plan,” “potential,” “forecasts,” or similar terminology. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, any mentioned in this press release as well as the Company’s ability to execute on its 5-Point Strategy, achieve high single-digit growth in 2023, realize the potential benefits of acquisitions and successfully integrate any acquired operations, grow the Company’s presence in its key target and international markets, manage supply chain challenges, convert backlog to sales and to ship product in a timely manner; the success of the Company’s strategy to diversify its markets; the impact of inflation on the Company’s business and financial condition; indications of a change in the market cycles in the semi market or other markets served; changes in business conditions and general economic conditions both domestically and globally including rising interest rates and fluctuation in foreign currency exchange rates; changes in the demand for semiconductors; access to capital and the ability to borrow funds or raise capital to finance potential acquisitions or for working capital; changes in the rates and timing of capital expenditures by the Company’s customers; and other risk factors set forth from time to time in the Company’s Securities and Exchange Commission filings, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement made by the Company in this press release is based only on information currently available to management and speaks to circumstances only as of the date on which it is made. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

Contacts

inTEST Corporation
Duncan Gilmour

Chief Financial Officer and Treasurer

Tel: (856) 505-8999

Investors:
Deborah K. Pawlowski

Kei Advisors LLC

dpawlowski@keiadvisors.com
Tel: (716) 843-3908

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Email: GM told Cruise employees that a 3rd party estimates internal share price of its self-driving unit at $11.80, down from $24.27 just one quarter ago

Greg Bensinger / Reuters:

— General Motors’ (GM.N) Cruise saw its internal share price cut by more than half from a quarter ago as the fallout from an October accident continues to weigh on the self-driving car company.

Cruise employees were told the share price had been estimated by a third party at $11.80, according to an email viewed by Reuters. That’s down from a prior estimate of $24.27 just one quarter ago.

“We cannot ignore that this estimate is significantly lower than we’ve seen before and that there are real life impacts for each of us,” wrote Craig Glidden, chief administrative officer for Cruise, in the email.

Cruise has been working to recover from an October accident in which a woman was dragged by one of its vehicles after being struck by a human driven car. The company’s permit to operate in California was suspended and Cruise has stopped all testing on public roads in the United States.

Glidden said Cruise has a “longer pathway towards scaled commercialization.” The company last year had plans to roll out self-driving taxis in nearly a dozen U.S. cities but has since cut a quarter of jobs and seen its CEO, co-founder and others leave.

It has been a difficult few months for the once-promising Cruise. GM last month said it slashed about $1 billion from Cruise’s annual budget and the firm released a withering safety analysis of the October crash in which evidence was shown that executives withheld important data from regulators, the press and the public.

It is being probed by a variety of government agencies including the Securities and Exchange Commission, Department of Justice and the National Highway Traffic Safety Administration.

Cruise is targeting a limited return to city streets with human drivers later this year, likely in Houston or Dallas, according to people familiar with the matter.

However, Cruise executives told some engineering and operations staff in internal meetings in recent weeks that they should not expect to see its robotaxis on city streets again until the fourth quarter, Reuters reported last month. The sources declined to be identified because they were not authorized to speak on Cruise’s behalf. Cruise has denied this characterization.

— Techmeme