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VIAVI Announces First Quarter Fiscal 2025 Results

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CHANDLER, Ariz., Oct. 31, 2024 /PRNewswire/ — VIAVI (NASDAQ: VIAV) today reported results for its first quarter ended September 28, 2024 with the following highlights.

First Quarter

Net revenue of $238.2 million, down $9.7 million or 3.9% year-over-yearGAAP operating margin of 4.8%, down 170 bps year-over-yearNon-GAAP operating margin of 10.0%, down 240 bps year-over-yearGAAP net loss of $1.8 million, down $11.6 million or 118.4% year-over-yearNon-GAAP net income of $12.4 million, down $7.1 million or 36.4% year-over-year GAAP diluted loss per share of $(0.01), down $0.05 or 125.0% year-over-yearNon-GAAP diluted earnings per share (EPS) of $0.06, down $0.03 or 33.3% year-over-year

“VIAVI’s Q1FY25 revenue came in slightly below the midpoint of our guidance, with weaker demand in NSE partially offset by stronger OSP performance. On a positive side, we are starting to see a pickup in the NSE order momentum with our advanced fiber products such as 800G and recently announced 1.6Tb, being particularly strong. This aligns with our expectations for the beginning of NSE demand recovery in second half of FY25,” said Oleg Khaykin, VIAVI’s President and Chief Executive Officer.

Financial Overview:

The tables below (in millions, except percentage, and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled “Use of Non-GAAP (Adjusted) Financial Measures.”

First Quarter Ended September 28, 2024

GAAP Results

Q1

Q4

Q1

Change

FY 2025

FY 2024

FY 2024

Q/Q

Y/Y

Net revenue

$         238.2

$         252.0

$         247.9

(5.5) %

(3.9) %

Gross margin

57.1 %

57.8 %

58.2 %

(70) bps

(110) bps

Operating margin

4.8 %

(2.3) %

6.5 %

710 bps

(170) bps

Income (loss) from operations

$           11.5

$           (5.7)

$           16.0

301.8 %

(28.1) %

Net (loss) income per share

(0.01)

(0.10)

0.04

90.0 %

(125.0) %

Non-GAAP Results

Q1

Q4

Q1

Change

FY 2025

FY 2024

FY 2024

Q/Q

Y/Y

Gross margin

59.1 %

59.6 %

60.1 %

(50) bps

(100) bps

Operating margin

10.0 %

10.9 %

12.4 %

(90) bps

(240) bps

Income from operations

$           23.9

$           27.5

$           30.8

(13.1) %

(22.4) %

Earnings per share

0.06

0.08

0.09

(25.0) %

(33.3) %

Net Revenue by Segment

Q1

Q4

Q1

Change

FY 2025

FY 2024

FY 2024

Q/Q

Y/Y

Network Enablement

$            141.6

$            158.5

$            150.0

(10.7) %

(5.6) %

Service Enablement

17.8

23.7

20.4

(24.9) %

(12.7) %

Optical Security and Performance Products

78.8

69.8

77.5

12.9 %

1.7 %

Total

$            238.2

$            252.0

$            247.9

(5.5) %

(3.9) %

 

Americas, Asia-Pacific and EMEA customers represented 37.2%, 36.1% and 26.7%, respectively, of total net revenue for the quarter ended September 28, 2024.As of September 28, 2024, the Company held $497.9 million in total cash, short-term investments and short-term restricted cash.As of September 28, 2024, the Company had $250 million aggregate principal amount of 1.625% Senior Convertible Notes and $400 million aggregate principal amount of 3.75% Senior Notes with a total net carrying value of $637.6 million.During the fiscal quarter ended September 28, 2024, the Company generated $13.5 million of cash flows from operations.

Business Outlook for the Second Quarter of Fiscal 2025

For the second quarter of fiscal 2025 ending December 28, 2024, the Company expects net revenue to be between $255 million to $265 million and non-GAAP EPS to be between $0.09 to $0.11.

With respect to our expectations above, the Company has not reconciled GAAP net loss per share to non-GAAP EPS in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the “Use of Non-GAAP (Adjusted) Financial Measures” section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. In addition, the Company believes such reconciliations would imply a degree of precision that may be confusing or misleading to investors.

Conference Call

The Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on October 31, 2024 in a live webcast, which will also be archived for replay on the Company’s website at https://investor.viavisolutions.com.  The Company will post supplementary slides outlining the Company’s latest financial results on https://investor.viavisolutions.com under the “Quarterly Results” section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.

About VIAVI Solutions

VIAVI (NASDAQ: VIAV) is a global provider of network test, monitoring and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace and railway. VIAVI is also a leader in light management technologies for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, government and aerospace applications.

Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectation, anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions, including market stabilization and recovery. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company’s ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our industry and customer base; (d) competitive pressures; (e) unforeseen changes or deceleration in the demand for current and new products, technologies, services, delays or unforeseen events in the roll-out of new industry platforms or evolving technology such as 3D sensing and customer purchasing delays due to macroeconomic conditions, tightening of expenditures or as they assess or transition to such new technologies and/or architectures, all of which limit near-term demand visibility, and could negatively impact potential revenue; (f) continued decline of average selling prices across our businesses; (g) notable seasonality and a significant level of in-quarter book-and-ship business; (h) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including anticipated cost savings associated with such plans; (i) challenges in execution of business strategy; (j) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (k) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (l) potential disruptions or delays to our manufacturing and operations due to climate conditions and natural disasters in the regions where we operate, such as wildfires, drought conditions and related water shortages in Arizona, as well as wildfires in Northern California and related blackouts and power outages in that region; (m) the uncertain and ongoing impact to our supply chain of military conflicts, such as the ongoing conflict between Russia and Ukraine and the ongoing conflict between Israel and Hamas and the expansion of conflict in the Middle East, including in Lebanon and with Iran, tariffs, sanctions and other trade measures imposed by domestic and foreign governments, adverse actions and escalating tensions with foreign governments, including China, and the possibility of escalation of “trade wars,” cyber-attacks, and retaliatory measures; (n) the impact of infectious disease outbreaks, epidemics, and pandemics on our financial results, revenues, customer demand, business operations and manufacturing and on the business operations of our customers, contract manufacturers and suppliers; and (o) inherent uncertainty related to global markets, including inflationary pressures, recessions, tightening monetary policy and liquidity, and the effect of such markets on demand for our products. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on the risks and uncertainties associated with the Company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements. We have not filed our Form 10-Q for the quarter ended September 28, 2024. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file the Form 10-Q.

Contact Information

Investors:
Vibhuti Nayar
408-404-6305
vibhuti.nayar@viavisolutions.com

Press: 
Amit Malhotra
202-341-8624
amit.malhotra@viavisolutions.com

The following financial tables are presented in accordance with GAAP, unless otherwise specified.

-SELECTED PRELIMINARY FINANCIAL DATA –

 

VIAVI SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

PRELIMINARY

Three Months Ended

September 28,
2024

September 30,
2023

Net revenue

$                 238.2

$                 247.9

Cost of revenues

98.8

100.0

Amortization of acquired technologies

3.3

3.5

Gross profit

136.1

144.4

Operating expenses:

Research and development

49.4

49.9

Selling, general and administrative

74.1

77.2

Amortization of other intangibles

1.1

2.1

Restructuring and related benefits

(0.8)

 Total operating expenses

124.6

128.4

Income from operations

11.5

16.0

Interest and other income, net

3.2

10.2

Interest expense

(7.5)

(7.8)

 Income before income taxes

7.2

18.4

Provision for income taxes

9.0

8.6

Net (loss) income

$                   (1.8)

$                     9.8

Net (loss) income per share:

 Basic

$                 (0.01)

$                   0.04

 Diluted

$                 (0.01)

$                   0.04

 Shares used in per share calculations:

 Basic

222.0

222.0

 Diluted

222.0

224.2

The preliminary financial statements are estimated based on our current information.

 

VIAVI SOLUTIONS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, unaudited)

PRELIMINARY

September 28, 2024

June 29, 2024

ASSETS

Current assets:

Cash and cash equivalents

$                         467.9

$                         471.3

Short-term investments

25.2

19.9

Restricted cash

4.8

5.0

Accounts receivable, net

203.1

213.1

Inventories, net

93.2

96.5

Prepayments and other current assets

69.8

70.7

Total current assets

864.0

876.5

Property, plant and equipment, net

230.5

228.2

Goodwill, net

461.2

452.9

Intangibles, net

34.0

38.2

Deferred income taxes

86.1

82.5

Other non-current assets

61.8

58.0

  Total assets

$                     1,737.6

$                     1,736.3

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                           47.4

$                           50.4

Accrued payroll and related expenses

44.4

48.2

Deferred revenue

63.7

65.7

Accrued expenses

23.8

25.3

Other current liabilities

53.5

57.5

Total current liabilities

232.8

247.1

Long-term debt

637.6

636.0

Other non-current liabilities

165.1

171.6

  Total liabilities

1,035.5

1,054.7

Total stockholders’ equity

702.1

681.6

Total liabilities and stockholders’ equity

$                     1,737.6

$                     1,736.3

The preliminary financial statements are estimated based on our current information.

 

VIAVI SOLUTIONS INC.

REPORTABLE SEGMENT INFORMATION

(in millions, unaudited)

PRELIMINARY

Three Months Ended September 28, 2024

Network and Service Enablement

Network
Enablement

Service
Enablement

Network and
Service
Enablement

Optical Security
and Performance
Products

Other Items (1)

Consolidated
GAAP Measures

Net revenue

$           141.6

$             17.8

$           159.4

$             78.8

$                   —

$           238.2

Gross profit

$             86.3

$             10.8

$             97.1

$             43.6

$                 (4.6)

$           136.1

Gross margin

60.9 %

60.7 %

60.9 %

55.3 %

57.1 %

Operating (loss) income

$             (7.3)

$             31.2

$               (12.4)

$             11.5

Operating margin

(4.6) %

39.6 %

4.8 %

Three Months Ended September 30, 2023

Network and Service Enablement

Network
Enablement

Service Enablement

Network and
Service
Enablement

Optical Security
and Performance
Products

Other Items (1)

Consolidated
GAAP Measures

Net revenue

$           150.0

$             20.4

$           170.4

$             77.5

$                   —

$           247.9

Gross profit

$             94.6

$             13.7

$           108.3

$             40.7

$                 (4.6)

$           144.4

Gross margin

63.1 %

67.2 %

63.6 %

52.5 %

58.2 %

Operating income

$               1.5

$             29.3

$               (14.8)

$             16.0

Operating margin

0.9 %

37.8 %

6.5 %

(1) See Reconciliation of GAAP Measures from Continuing Operations to Non-GAAP Measures below for details of Other Items.

The preliminary financial schedules are estimated based on our current information.

Use of Non-GAAP (Adjusted) Financial Measures

The Company provides non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP EPS, EBITDA and adjusted EBITDA financial measures as supplemental information regarding the Company’s operational performance. The Company uses the measures disclosed in this release to evaluate the Company’s historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company’s core operating performance, which the Company believes represent its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to certain purchase price accounting adjustments, amortization of acquisition-related intangibles, stock-based compensation, legal settlements, restructuring, changes in fair value of contingent consideration liabilities and certain investing and acquisition related expenses and other activities that management believes are not reflective of such ordinary, ongoing and core operating activities.

The Company believes providing this additional information allows investors to see Company results through the eyes of management. The Company further believes that providing this information allows investors to better understand the Company’s financial performance and, importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance.

The non-GAAP adjustments described in this release are excluded by the Company from its GAAP financial measures because the Company believes excluding these items enables investors to evaluate more clearly and consistently the Company’s core operational performance. The non-GAAP adjustments are outlined below.

Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company’s GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, equipment and intangibles that have been identified for disposal but remained in use until the date of disposal, (ii) charges such as severance, benefits and outplacement costs related to restructuring plans, (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, (v) amortization expense related to acquired intangibles, (vi) changes in fair value of contingent consideration liabilities and (vii) other charges unrelated to our core operating performance comprised mainly of acquisition related transaction costs, integration costs related to acquired entities, litigation and legal settlements and other costs and contingencies unrelated to current and future operations, including transformational initiatives such as the implementation of simplified automated processes, site consolidations, and reorganizations. The Company excludes these items in calculating non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP EPS, EBITDA and adjusted EBITDA.

Non-cash interest expense and other expense: The Company excludes certain investing expenses, including accretion of debt discount, and other non-cash activities that management believes are not reflective of such ordinary, ongoing and core operating activities, when calculating non-GAAP net income and non-GAAP EPS.

Income tax expense or benefit: The Company excludes certain non-cash tax expense or benefit items, such as the utilization of net operating losses where valuation allowances were released, intra-period tax allocation benefit and the tax effect for amortization of non-tax deductible intangible assets, when calculating non-GAAP net income and non-GAAP EPS.

Interest, taxes, depreciation, amortization and other adjustments: The Company’s EBITDA calculation primarily excludes interest income and other income (expense), interest expense, taxes, depreciation and amortization, and other items that are not part of its core operating performance described above. The Company’s adjusted EBITDA excludes items in addition to the items excluded from the EBITDA calculation, such as stock-based compensation, restructuring, gain or loss on sale of available for-sale investments, changes in fair value of contingent consideration liabilities arising from prior acquisitions and other charges related to activities that are not part of its core operating performance described above. Management believes adjusted EBITDA is a helpful indicator of the Company’s core operational cash flow.

Non-GAAP financial measures are not in accordance with, preferable to, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP net income is net income. The GAAP measure most directly comparable to non-GAAP EPS is net income per share. The Company believes these GAAP measures alone are not fully indicative of its core operating expenses and performance and that providing non-GAAP financial measures in conjunction with GAAP measures provides valuable supplemental information regarding the Company’s overall performance.

VIAVI SOLUTIONS INC.

RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS

TO NON-GAAP MEASURES

(in millions, except per share data)

(unaudited)

PRELIMINARY

The following tables reconcile GAAP measures to non-GAAP measures:

Three Months Ended

September 28, 2024

September 30, 2023

Gross
Profit

Gross
Margin

Gross
Profit

Gross
Margin

GAAP measures

$     136.1

57.1 %

$     144.4

58.2 %

 Stock-based compensation

1.2

0.5 %

1.2

0.5 %

 Other charges (benefits) unrelated to core operating performance

0.1

0.1 %

(0.1)

— %

 Amortization of intangibles

3.3

1.4 %

3.5

1.4 %

Total related to Cost of Revenue

4.6

2.0 %

4.6

1.9 %

Non-GAAP measures

$     140.7

59.1 %

$     149.0

60.1 %

Three Months Ended

September 28, 2024

September 30, 2023

Operating
Income

Operating
Margin

Operating
Income

Operating
Margin

GAAP measures

$       11.5

4.8 %

$       16.0

6.5 %

 Stock-based compensation

12.7

5.3 %

11.2

4.5 %

 Change in fair value of contingent liability

(3.5)

(1.5) %

(1.4)

(0.6) %

 Acquisition and integration related charges

0.6

0.3 %

— %

 Other (benefits) charges unrelated to core operating performance (1)

(0.5)

(0.2) %

0.2

0.1 %

 Amortization of intangibles

4.4

1.8 %

5.6

2.2 %

 Restructuring and related charges

— %

(0.8)

(0.3) %

 Litigation settlement

(1.3)

(0.5) %

— %

Total related to Cost of Revenue and Operating Expenses

12.4

5.2 %

14.8

5.9 %

Non-GAAP measures

23.9

10.0 %

30.8

12.4 %

Three Months Ended

September 28, 2024

September 30, 2023

Net (Loss)
Income

Diluted

 EPS

Net
Income

Diluted

 EPS

GAAP measures

$       (1.8)

$     (0.01)

$         9.8

$       0.04

Items reconciling GAAP Net (Loss) Income and EPS to Non-GAAP Net Income and EPS:

 Stock-based compensation

12.7

0.06

11.2

0.05

 Change in fair value of contingent liability

(3.5)

(0.01)

(1.4)

 Acquisition and integration related charges

0.6

 Other (benefits) charges unrelated to core operating performance (1)

(0.5)

0.2

 Amortization of intangibles

4.4

0.02

5.6

0.02

 Restructuring and related benefits

(0.8)

   Litigation settlement

(1.3)

(0.01)

(7.3)

(0.03)

 Non-cash interest expense and other expense

1.1

0.01

1.2

0.01

 Provision for income taxes

0.7

1.0

    Total related to Net (Loss) Income and EPS

14.2

0.07

9.7

0.05

Non-GAAP measures

$       12.4

$       0.06

$       19.5

$       0.09

Shares used in per share calculation for Non-GAAP EPS

224.0

224.2

Note: Certain totals may not add due to rounding.

(1)  Included in the three months ended September 28, 2024 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance of $0.4 million.

The preliminary financial schedules are estimated based on our current information.

 

VIAVI SOLUTIONS INC.

RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS

TO ADJUSTED EBITDA

(in millions, unaudited)

PRELIMINARY

Three Months Ended

September 28,
2024

September 30,
2023

GAAP Net (Loss) Income

$                  (1.8)

$                    9.8

Interest and other income, net (1)

(3.2)

(10.2)

Interest expense

7.5

7.8

Provision for income taxes

9.0

8.6

Depreciation

9.7

9.8

Amortization

4.4

5.6

EBITDA

25.6

31.4

Restructuring and related benefits

(0.8)

Stock-based compensation

12.7

11.2

Change in fair value of contingent liability

(3.5)

(1.4)

Acquisition and integration related charges

0.6

Other (benefits) charges unrelated to core operating performance (2)

(1.9)

0.1

Adjusted EBITDA

$                  33.5

$                  40.5

Note: Certain totals may not add due to rounding.

(1) Includes favorable litigation settlement of $7.3 million recorded as a gain to Interest and other income, net in the Consolidated Statements of Operations for the three months ended September 30, 2023. 

(2) Included in the three months ended September 28, 2024 is a gain on litigation settlement of $1.3 million, a gain on the sale of assets previously classified as held for sale of $0.9 million and other charges unrelated to core operating performance of $0.3 million.

The preliminary financial schedules are estimated based on our current information.

 

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SOURCE VIAVI Financials

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Technology

New Atlas Maps Carbon Storage Opportunities Across Eastern Canada — From Industrial-Scale Hubs to Local CCS Solutions

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By

CALGARY, AB, April 21, 2026 /CNW/ – Canadian Discovery Ltd. (CDL) is pleased to announce the upcoming release of the Geological Carbon Storage Atlas of Eastern Canada on April 28, 2026. Co-funded by Natural Resources Canada (NRCan), carbon removal project developer Deep Sky, and CDL, this project was led and delivered by CDL in collaboration with NRCan CanmetENERGY. The Atlas delivers a comprehensive regional assessment of carbon dioxide (CO₂) storage potential across Quebec and Atlantic Canada, providing detailed analysis of storage opportunities, costs, and geological risks to support the development of carbon capture and storage (CCS) projects. While previous studies have examined parts of Eastern Canada, this is the first to provide a fully integrated regional assessment of CO₂ storage in deep saline aquifers and depleted hydrocarbon reservoirs.

Effective CO₂ storage is essential to achieving Canada’s climate objectives, with the International Energy Agency estimating that up to 95% of captured CO₂ worldwide will need to be permanently stored.1 Recognizing the importance of advancing carbon storage knowledge, the Government of Canada announced more than $11 million in funding for cutting-edge, made-in-Canada carbon utilization and storage projects during the 2025 G7 Presidency. The Geological Carbon Storage Atlas of Eastern Canada was selected as one of the projects supported through this investment.

As Canada seeks solutions to reduce emissions, the research conducted in this Atlas reveals that Eastern Canada possesses meaningful and geologically credible CO₂ storage potential. Across the basins assessed, significant variability was observed in prospective CO2 storage resource size, sealing capacity, reservoir quality and estimated storage costs. These differences reflect the diverse geological settings, geographical variability and data maturity across the region. Some storage complexes are well suited to large-scale, hub-style CCS developments with substantial capacity and strong containment, while others are better aligned with smaller, bespoke projects targeting localized emitters and more modest storage volumes.

The Atlas provides project developers with geological context to scope appraisal programs, regulators with a scientific reference for evaluating proposed operations, and policymakers with the spatial intelligence needed to design effective incentive frameworks. Equally, by presenting data transparently and accessibly, this Atlas supports inclusive dialogue with Indigenous communities, municipalities, industry, and governments responsible for CCS development demands.

“Quebec and Atlantic Canada represent an enormous opportunity for carbon storage, and this Atlas is a landmark step in unlocking it. By combining comprehensive subsurface analysis with cost and economic modelling, we’re giving stakeholders across industry, government, and communities the tools they need to move from ambition to action — and positioning Eastern Canada as a serious player in the global decarbonization landscape.” said Matt Scorah, CDL’s VP of Decarbonization.

“Deep Sky was proud to support this work because rigorous, detailed subsurface data strengthens the entire carbon removal ecosystem. The Atlas provides valuable regional insight for Eastern Canada and helps inform the next phase of site-specific technical assessments required to advance safe, durable carbon storage. This comes at an important time as Québec advances the development of its carbon storage framework,” said Mathieu Bouchard, vice-president of public policy and regulatory affairs for Québec at Deep Sky.

The Atlas is publicly available and can be downloaded from the official project website. The comprehensive datasets and shapefiles compiled and produced during the Atlas’ development can be licensed through CDL upon request.

CDL brings extensive experience in CCS projects across North America and is proud to add the Geological Carbon Storage Atlas of Eastern Canada to this growing body of work. Project findings will be shared through a two-part webinar series on April 28 and May 5, followed by a presentation at GeoConvention in Calgary on May 13. Additional presentations are planned throughout the summer and fall. Details and registration are available at canadiandiscovery.com.

About Canadian Discovery Ltd.
Canadian Discovery Ltd. (CDL) is a global leader in subsurface intelligence, headquartered in Calgary, Alberta. For over 35 years, we’ve combined geoscience and engineering expertise to deliver reservoir- to basin-scale evaluations — assessing subsurface geology, pressure, fluid flow, fluid chemistry, and geomechanics for clients worldwide.

Today, CDL is at the forefront of the energy transformation, applying our deep subsurface knowledge to Carbon Capture, Utilization and Storage (CCUS), geothermal energy, critical minerals, hydrogen production, and water solutions. We don’t just understand what’s beneath the surface — we unearth the opportunities within it.

About Deep Sky
Montreal-based Deep Sky is the world’s first tech-agnostic carbon removal project developer aiming to remove gigatons of carbon from the atmosphere and permanently store it underground. As a project developer, Deep Sky brings together the most promising direct air carbon capture companies under one roof to bring the largest supply of high-quality carbon credits to the market, commercializing and catalyzing carbon removal and storage solutions like never before. With $130M in funding, Deep Sky is backed by world class investors including Investissement Québec, Brightspark Ventures, Whitecap Venture Partners, OMERS Ventures, BDC Climate Fund, BMO, National Bank of Canada, Breakthrough Energy Catalyst, and more. For more information, visit deepskyclimate.com.

1 IEA (2021). Net Zero by 2050. https://www.iea.org/reports/net-zero-by-2050

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Convergent Research and ARIA Launch Two New UK Focused Research Organizations

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Meridial and Echo Labs aim to build new scientific infrastructure for living-brain connectivity mapping and ecological intelligence

LONDON, April 21, 2026 /PRNewswire/ — Convergent Research, a mission control for frontier technology, and the United Kingdom’s Advanced Research and Invention Agency (ARIA) today announced the launch of two new UK Focused Research Organizations, or FROs: Meridial and Echo Labs. Developed through Convergent’s UK FRO Founder Residency with ARIA, the two organisations represent a new way to build scientific institutions around specific technical bottlenecks that are too engineering-heavy, operationally complex, or long-horizon for conventional labs or startups to address effectively. Convergent’s FRO Founder residency programme was piloted through Convergent’s role as an Activation Partner to ARIA, with the aim of identifying and refining FRO-shaped projects aligned with ARIA opportunity spaces and building the capability to launch and support new FROs in the UK.

Focused Research Organizations are nonprofit, startup-like scientific organisations built to tackle clearly defined scientific or technological bottlenecks over a fixed period of time, often by creating public goods such as tools, datasets, platforms, methods, and technical infrastructure that can unlock broader downstream progress. Convergent has used this model to launch ten FROs in the US, and the UK residency with ARIA extended that playbook into a cohort-based format designed to source, incubate, launch, and support ambitious new UK organisations. The UK is Convergent’s first major expansion outside the US.

“Building the right institution can matter as much as having the right idea,” said Pippy James, Deputy CEO at ARIA. “ARIA is working to expand what’s possible for high-risk, high-reward science, and FROs are a powerful way of doing that. Meridial and Echo Labs are tackling the kinds of bottlenecks and opportunities this approach is designed to address, and we’re excited to see what new capabilities they make possible.”

Each of the two new organisations is tackling a different bottleneck, but both are built around the same core premise: that some forms of scientific progress require purpose-built organisations, not just new grants or new labs. Both organisations align with a distinct ARIA opportunity space, targeting areas where new infrastructure could unlock significant progress.

These new organisations are:

Meridial, launching with an initial £14 million award from ARIA and aligned with its Scalable Neural Interfaces opportunity space, is building a microscopy platform designed to map and track synaptic connections in living animals over time. By making it possible to observe how brain connectivity changes across development, disease, learning, and therapeutic intervention, Meridial aims to help bridge an important gap between molecular mechanisms and circuit-level function. Over its funded period, the organisation will work to develop and operate a platform capable of mapping and longitudinally tracking synaptic connections across local and long-range brain circuits over extended time periods.

“Many of the most important questions in neuroscience and brain health relate to how living circuits change over time. Today, when we seek to observe such changes with high resolution, we are often limited by scale, or must infer dynamics from static snapshots of extracted tissue. Meridial is being built to overcome these challenges with a platform for mapping and tracking synaptic connections in living animals over extended periods. We think infrastructure like this could help open up new ways of understanding development, disease, learning, and therapeutic intervention,” said Mehmet Fisek, Founder and CEO of Meridial.

“Progress in brain science and brain health has been constrained for too long by the limits of our tools. Meridial is exciting because it is building infrastructure that could let researchers observe how neural circuits change over time, rather than inferring those changes indirectly after the fact. That kind of capability could open up important new routes for understanding disease, development, and recovery,” said Jacques Carolan, Programme Director at ARIA.

Echo Labs, launching with an initial £7 million award from ARIA and aligned with its Scoping Our Planet opportunity space, is building new infrastructure to represent the natural world and make it legible enough to model, compare, and forecast. If the state of an ecosystem can be measured as a dynamic system, the implications extend beyond observation. Just as weather and human health became understandable through shared measurements and modeling, ecosystem condition could become a measurable, continuously updated layer of intelligence.

“Today, ecology generates fragmented observations but lacks the integrated representation needed to understand ecological complexity and translate it into usable signals. Ecosystems underpin our economies and societies, but we still lack the scientific infrastructure to measure and forecast ecological condition with anything like the precision we bring to other natural or engineered systems. We envision a world in which global ecosystem condition is continuously observed, modeled, and useful for science, governance, finance, and stewardship happens before collapse occurs, rather than after,” said Kaja Wasik, PhD, CEO of Echo Labs.

“Responsible stewardship requires sufficiently good understanding. Yet for most species, ecological interactions, and ecosystems, our ability to measure and forecast remains frustratingly limited. Echo Labs aims to build foundational infrastructure for ecological intelligence, enabling intentional action that complements well-established approaches to supporting nature,” said Yannick Wurm, Programme Director at ARIA.

Meridial and Echo Labs join a growing UK FRO landscape that includes Bind Research, a UK-based not-for-profit focused on making disordered proteins druggable. Together, these efforts suggest a broader institutional shift: one in which new scientific organisations are designed not around disciplines alone, but around bottlenecks, capabilities, and the shared infrastructure required to unlock downstream progress.

“Scientific progress is often slowed not by a lack of ideas, but by a lack of institutions designed to turn important ideas into shared capabilities,” said Anastasia Gamick, President and co-founder of Convergent Research. “Focused Research Organizations are built for exactly that gap. We’re excited to see this model continue to take root in the UK through organisations that are technically ambitious, tightly scoped, and built to create public goods with broad downstream value. We can’t wait to share more from these two teams and our ongoing work with ARIA.”

Meridial and Echo Labs are expanding their teams in 2026. More information about each organisation, including information about career opportunities and technology releases, will be available at meridial.org and echolabs.org.

About ARIA

The Advanced Research + Invention Agency (ARIA) is an R&D funding agency created to unlock technological breakthroughs that benefit everyone. Created by an Act of Parliament, and sponsored by the Department for Science, Innovation, and Technology, ARIA funds teams of scientists and engineers to pursue research at the edge of what is scientifically and technologically possible.

 

About Meridial

Meridial is a UK-based Focused Research Organization building a microscopy platform for mapping and tracking synaptic connections in living animals over time. Its mission is to develop scientific infrastructure that enables researchers to observe how neural connectivity changes across development, disease, learning, and therapeutic intervention. Meridial is supported by Convergent Research and powered by ARIA.

About Echo Labs

Echo Labs is a UK-based Focused Research Organization building scientific infrastructure for ecological monitoring and forecasting. Its mission is to make ecosystem condition more measurable and forecastable through new combinations of environmental data, models, and software. Echo Labs is supported by Convergent Research and powered by ARIA.

About Convergent Research

Convergent Research brings together scientific founders and funders to design, launch and operate Focused Research Organizations (FROs) across a range of fields. Our FROs, like Meridial and Echo Labs, build pivotal infrastructure that bridges gaps to breakthrough scientific research, proving out a new operating model for science that enables a high level of team science and systems engineering for public goods creation.

 

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ECRI Spins Out Healthcare Spend Management and Recall Management Solutions

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Staritas established with growth investment from Accel-KKR to transform healthcare supply chain through data-driven intelligence

WILLOW GROVE, Pa., April 21, 2026 /PRNewswire/ — ECRI, a global healthcare quality and safety nonprofit organization, today announced that it has spun out its Spend Management and Recall Management solutions as an independent company, Staritas. Powered by investments from Accel-KKR, a global technology-focused investment firm, Staritas will continue to build on its pioneering leadership in healthcare supply chain intelligence.

“For five decades, ECRI’s award-winning Spend Management solutions have helped healthcare supply chain leaders navigate supply disruptions with resiliency, save millions of dollars, and benchmark purchasing decisions using the industry’s most comprehensive, independent datasets,” said Marcus Schabacker, CEO, MD, president of ECRI. “Now, by spinning out Staritas, powered by Accel-KKR to supercharge the power behind the data, improve the user experience, and accelerate innovation, healthcare supply chain leaders can realize even greater value from the platform.”

The healthcare supply chain of the future will no longer be driven by reactive, event-driven decisions, but proactive, continuous strategies, powered by AI and real-time intelligence. As an independent company backed by Accel-KKR, Staritas will expand on the development and delivery of AI-powered solutions and insights that empower leaders to manage the growing complexity of supply chains with greater intelligence.

“We are excited to partner with ECRI and support the launch of Staritas, a new company with a 50- year track record of pioneering work in spend and recall management,” said Park Durrett, Managing Director at Accel-KKR. “Staritas’s unmatched independent datasets and domain expertise create a strong foundation for growth and customer impact. We’re proud to build on Staritas’s legacy and remain committed to the transparency, independence, and objectivity that define its work. We look forward to partnering with the talented Staritas team to keep building on a market-leading platform that delivers greater value to healthcare organizations and stakeholders worldwide.”

Staritas: Making Every Choice Clear

In today’s healthcare environment, leaders face rising costs, margin pressure, supply chain disruptions, and increasing complexity, often making decisions with fragmented information, such as supplier pricing without benchmarks, or investments without a clear view of total cost.

Staritas solves this problem by combining the largest independent source of healthcare supply and capital datasets with deep expertise and advanced analytics to help organizations in over 70 countries understand market trends and better manage their supply chains. Trusted by nearly 90% of the top U.S. hospitals and health systems, Staritas helps customers identify up to $13 billion annually in opportunity savings. With an independent, unbiased view, supply chain leaders can see all their options, seize opportunities through actionable insights, and make confident decisions.

“Staritas is committed to providing data-driven insights and services that help healthcare organizations optimize operations, save money and strengthen decision making,” said Emmet O’Gara, CEO of Staritas. “The data, solutions and people that now make up Staritas are among the best in the field of spend and recall management. We plan to continuously raise the bar in serving healthcare supply chain leaders with next-generation platform and technology advancements that help to protect margins, deliver quality care and boost resiliency.”

Customers will maintain continuity in day-to-day operations, with additional investments planned to enhance platform capabilities and deepen the value delivered across solutions. Users of Staritas products were notified with assurances of a smooth transition and continuity in the personnel and support systems available.

ECRI: Making Healthcare Safer, Stronger, More Resilient

“This move is not a departure, it is a commitment to deepening ECRI’s focus on patient safety, clinical evidence, and system-level change across healthcare,” added ECRI CEO Dr. Schabacker. “ECRI’s services and solutions are now focused exclusively on creating resilient and safe healthcare systems and assessing technologies used in those systems – backed by new investment and commitment to effect transformative change. With this strategic shift, ECRI is investing, at an unprecedented level, in the expert teams, proprietary data assets, and advanced capabilities that allow healthcare organizations to build safety into their culture, their operations, and their systems. Not as a one-time initiative, but as a permanent, self-reinforcing foundation.”

Despite decades of effort nationwide, patient safety in the U.S. is still marked by high rates of preventable harm.

“One in four patient admissions involve an adverse event, and nearly a quarter of those are preventable. That’s tragic and unacceptable,” said Dheerendra Kommala, MD, ECRI Chief Medical Officer. “Through this strategic move, ECRI is now singularly focused on improving patient safety. We plan to expand solutions that can transform healthcare organizations, building on our legacy of advancing evidence-based medicine.”

About ECRI

ECRI is an independent, nonprofit organization improving the safety, quality, and cost-effectiveness of healthcare. With a focus on patient safety, system design and technology evaluation, ECRI is respected and trusted by healthcare leaders and agencies worldwide. For nearly 60 years, ECRI has built its reputation on integrity and disciplined rigor, with an unwavering commitment to independence and evidence-based care. ECRI is the only organization worldwide to conduct independent medical device evaluations, with labs located in North America and Asia Pacific. ECRI is designated an Evidence-based Practice Center by the U.S. Agency for Healthcare Research and Quality and a federally certified Patient Safety Organization by the U.S. Department of Health and Human Services. ECRI acquired The Institute for Safe Medication Practices (ISMP) in 2020 to address one of the most prolific causes of preventable harm in healthcare, medication errors; then acquired The Just Culture Company in 2024 to transform healthcare workplace cultures – thus creating one of the largest healthcare quality and safety entities in the world. Visit ECRI.org to learn more.

About Staritas

Staritas helps healthcare supply chain leaders around the world make more informed decisions so they can understand market trends and better manage all aspects of their supply chain. With Staritas, they can see all the options with the largest independent source of supply and capital data, seize the opportunities with access to deep industry expertise, and achieve their organizational goals. That’s why nearly 90% of the top U.S. hospitals and health systems trust our five decades of expertise for their most important supply chain and recall management decisions. And it’s how our clients find up to $13B dollars in opportunity savings every year. Staritas. Make every choice clear. Learn more at Staritas.com.

About AKKR

Accel-KKR is a technology-focused investment firm with over $23 billion in cumulative capital commitments. The firm focuses on software and tech-enabled businesses, well-positioned for topline and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value alongside management by leveraging the significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions, including buyout capital, minority-growth investments, and credit alternatives. Accel-KKR also invests across various transaction types, including private company recapitalizations, divisional carve-outs, and going-private transactions. Accel-KKR’s headquarters is in Menlo Park, with offices in London, Atlanta and Chicago. Visit accel-kkr.com.

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