Connect with us

Technology

Velo3D Announces First Quarter 2025 Financial Results

Published

1 year ago

on

Revenue of $9.3 millionGross margin of 7.5%Backlog of $18 million as of March 31, 2025Reaffirms expectation for 2025 annual revenue growth of more than 30%Reaffirms expectation to be EBITDA positive in the first half of 2026

FREMONT, Calif., May 13, 2025 /PRNewswire/ — Velo3D, Inc. (OTCQX: VLDX), a leader in additive manufacturing (AM) technology known for transforming aerospace and defense supply chains through world-class metal AM, today announced financial results for its first quarter ended March 31, 2025. 

Recent Business Developments

Demand mix shift to Rapid Production Services (RPS) underwayRPS backlog increased 3x as compared to year-end 2024New customers represented more than 75% of 1Q’25 bookings50% demand from defense sectorSigned a five-year, $15 million master services agreement (MSA) with Momentus, Inc.to leverage to RPS OfferingSigned a five-year exclusive supply agreement with Amaero Advanced Materials & Manufacturing, Inc. (“Amaero”) advancing efforts to re-shore advanced manufacturing and accelerate the adoption of additive manufacturingReceived an order for a fourth Sapphire XC printer from Mears Machine Corporation to support the continued development of aerospace and industrial-related programsAnnounced an agreement with Ohio Ordinance Works, Inc. to provide RPS as part of its 3D Printed Military Weapons Development initiative.Appointed retired U.S. Army Green Beret, Brice Cooper, as Vice President of Defense and Government RelationsAppointed retired Navy Rear Admiral Jason Lloyd and Kenneth Thieneman to Board of DirectorsUpgraded to OTCQX® Best Market from the Pink® market

“Momentum is building across our business as we implement a number of strategic initiatives that we believe position Velo3D for sustainable, long-term growth and a return to profitability,” said Arun Jeldi, CEO of Velo3D. “We are seeing early results from our new go-to-market strategy, which is gaining significant traction with both new and existing customers, particularly in the defense and aerospace industries where domestic supply chain resiliency is a priority.”

Jeldi, continued, “A $15 million, five-year MSA with Momentus, along with our exclusive supply agreement with Amaero, further validates our RPS offering and underscores our expanding role in reshoring critical manufacturing capabilities in the U.S. RPS is designed to address the growing demand for scalable, high-quality parts by providing a seamless path from design to production. It reduces design cycles, accelerates production qualification and ensures consistent output through a U.S.-based supply chain. Awareness and interest are accelerating among top-tier companies in defense, aerospace and technology, and we believe RPS could account for up to 40% of our revenue by 2026.”

Jeldi continued, “We further strengthened our leadership team with the appointment of retired U.S. Army Green Beret Brice Cooper as Vice President of Defense and Government Relations and welcomed Rear Admiral Jason Lloyd and Kenneth Thieneman to our Board of Directors. Their deep industry and defense expertise will be instrumental as we expand our presence in key strategic markets.”

Jeldi, concluded, “With a number of initiatives in motion, we believe we are in a strong position to execute our strategy and reclaim our leadership in additive manufacturing. We are already seeing measurable improvements in performance and expect sequential quarterly progress throughout 2025.”

($ in Millions, except percentages and per-share data)

1st Quarter 2025

1st Quarter 2024

GAAP revenue

$9.3

$9.8

GAAP gross margin

7.5 %

(28.8) %

GAAP net loss1

($25.4)

($28.3)

GAAP net loss per share – basic and diluted

($0.13)

($3.81)

Non-GAAP net loss2

($8.9)

($20.2)

Non-GAAP net loss per share – basic and diluted2

($0.04)

($2.71)

Information about Velo3D’s use of non-GAAP information, including a reconciliation to U.S. GAAP, is provided at the end of this release under “Non-GAAP Financial Information”.  The non-GAAP financial measures presented in this release should not be considered as the sole measure of the company’s performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with generally accepted accounting principles accepted in the United States.Non-GAAP net loss and non-GAAP net loss per diluted share exclude stock-based compensation expense, gain on exchange of debt for common stock, fair value adjustments for the Company’s warrants, contingent earnout and debt derivative and loss on extinguishment of debt.

Summary of First Quarter 2025 Results 

Revenue was $9.3 million. System revenue decreased compared to the first quarter of 2024, driven by a modest decrease in the number of printer sales, consistent with our strategy of maintaining Average Selling Price (ASP) by targeting high-value customers. While system sales are expected to remain the primary driver of revenue in 2025, the company anticipates that, under its new go-to-market strategy, its RPS parts production business will contribute an increasing share of revenue beginning in the second half of the year. 

Gross margin for the first quarter was 7.5% compared to negative 28.8% in the first quarter of 2024. The improvement is a result of continued Build of Materials (BOM) cost reduction as well as manufacturing process optimization. The company expects gross margin to improve throughout 2025 as a result of operational efficiencies and an anticipated ramp-up of its Rapid Production Solutions business. 

Operating expenses for the first quarter were $12.6 million compared to $18.6 million in the first quarter of 2024. Non-GAAP operating expenses, which excludes stock-based compensation expense of $3.9 million, were $8.8 million, down from $14.1 million in the first quarter of 2024. 

GAAP net loss for the first quarter was $25.4 million compared to a loss of $28.3 million in the first quarter of 2024. 

Non-GAAP net loss was $8.9 million in the three months ended March 31, 2025, which excludes the non-cash loss from the warrant cancellation transaction that eliminated significant future liabilities. Adjusted EBITDA for the quarter was negative $6.9 million. For more information regarding the company’s non-GAAP financial measures, see “Non-GAAP Financial Information” below.

As of March 31, 2025, the Company had $3.9 million of cash and cash equivalents, compared to $1.2 million as of December 31, 2024.

Guidance

Management expects the following for the full year 2025:

Revenue in the range of $50 million to $60 million.Sequential improvement in gross marginGreater than 30% gross margin in fourth quarter of 2025Non-GAAP operating expenses in the range of $40 million to $50 millionCapEx in the range of $15 million to $20 millionEBITDA positive in the first half of 2026

Conference Call

The company will host a conference call for investors this afternoon to discuss its first quarter 2025 financial results at 5 p.m. Eastern time / 2 p.m. Pacific time on May 13, 2025. The call will be webcast and can be accessed from the Events page of the Investor Relations section of Velo3D’s website at ir.velo3d.com.

About Velo3D:

Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable.

Velo3D has overcome these limitations so engineers can design and print the parts they want. The company’s solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system—all of which are powered by Velo3D’s Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Honeywell, Honda, Chromalloy, and Lam Research. Velo3D has been named as one of Fast Company’s Most Innovative Companies for 2024. For more information, please visit Velo3D.com, or follow the company on LinkedIn or Twitter.

VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc.

Amounts herein pertaining to the company’s first quarter ended March 31, 2025 results represent a preliminary estimate as of the date of this earnings release and may be revised upon filing of our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (the “SEC”). Additional information on our results of operations for the three months ended March 31, 2025 will be provided upon the filing our Quarterly Report 10-Q with the SEC.

Forward-Looking Statements:

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1996. The company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company’s guidance for fiscal years 2025 and 2026 (including the company’s estimates for revenue and gross margin), the company’s expectations regarding its ability to achieve profitability in the first half of 2026, the company’s expectations about future demand, the company’s strategic realignment and initiatives, the company’s expectations regarding its liquidity and capital requirements, the company’s expectations regarding its potential cost savings, the company’s expectations about its market strategy and financial and operational position, and the company’s other expectations, beliefs, intentions or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “FY 2024 10-K”) and the other documents filed by the company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability of the company to execute its business plan, which may be affected by, among other things, competition, the company’s liquidity position//lack of available cash, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its key employees; (2) the company’s ability to continue as a going concern; (3) the company’s ability to service and comply with its indebtedness; (4) the company’s ability to raise additional capital in the near-term; (5) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; (6) changes in the applicable laws and regulations, and (7) other risks and uncertainties described in the FY 2024 10-K, including those under “Risk Factors” therein, and in the company’s other filings with the SEC. The company cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. 

Non-GAAP Financial Information

The information in the table below sets forth the non-GAAP financial measures that the company uses in this release. We believe these non-GAAP financial performance and liquidity measures are helpful in identifying trends in our day-to-day performance because the items excluded have little or no significance on our day-to-day operations. These measures provide an assessment of core expenses and afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieve optimal financial performance.

Each of our non-GAAP measures have limitations as analytical tools. Because of these limitations, “Non-GAAP Net Loss”, “EBITDA”, “Adjusted EBITDA” and “Non-GAAP Operating Expenses”, should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The company compensates for these limitations by relying primarily on its GAAP results and using Non-GAAP Net Loss, EBITDA, Adjusted EBITDA, and Non-GAAP Operating Expenses on a supplemental basis. You should review the reconciliation of the non-GAAP financial measures below and not rely on any single financial measure to evaluate the company’s business.

The following tables reconcile Net income (loss) to Non-GAAP Net Loss, EBITDA, and Adjusted EBITDA and Total Operating Expenses to Non-GAAP Operating Expenses during the periods below:

Velo3D, Inc.

NON-GAAP Net Loss Reconciliation

(Unaudited)

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

(In thousands, except for percentages)

% of Rev

% of Rev

% of Rev

Revenue

$

9,320

100.0

%

$

12,626

100.0

%

$

9,786

100.0

%

Gross Profit

697

7.5

%

(444)

(3.5)

%

(2,815)

(28.8)

%

Net Loss

$

(25,411)

(272.7)

%

$

(21,686)

(171.8)

%

$

(28,314)

(289.3)

%

Stock-based compensation

4,074

43.7

%

2,322

18.4

%

5,087

52.0

%

Gain on exchange of debt for common stock

–

—

%

(2,619)

(20.7)

%

–

—

%

(Gain) loss on fair value of warrants

1,044

11.2

%

(184)

(1.5)

%

2,620

26.8

%

Loss on fair value of contingent earnout liabilities

–

—

%

–

—

%

437

4.5

%

Loss on warrant cancellation

11,357

121.9

%

–

—

%

–

—

%

Non-GAAP Net Loss

$

(8,936)

(95.9)

%

$

(22,167)

(175.6)

%

$

(20,170)

(206.1)

%

 

Velo3D, Inc.

NON-GAAP Adjusted EBITDA Reconciliation

(Unaudited)

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

(In thousands, except for percentages)

% of Rev

% of Rev

% of Rev

Revenue

$

9,320

100.0

%

$

12,626

100.0

%

$

9,786

100.0

%

Net Loss

(25,411)

(272.7)

%

(21,686)

(171.8)

%

(28,314)

(289.3)

%

Interest expense

1,070

11.5

%

3,048

24.1

%

3,897

39.8

%

Provision for income taxes

8

0.1

%

(20)

(0.2)

%

4

0.0

%

Depreciation and amortization

942

10.1

%

968

7.7

%

1,396

14.3

%

EBITDA

$

(23,391)

(251.0)

%

$

(17,690)

(140.1)

%

$

(23,017)

(235.2)

%

Stock-based compensation

4,074

43.7

%

2,322

18.4

%

5,087

52.0

%

Gain on exchange of debt for common stock

–

—

%

(2,619)

(20.7)

%

–

—

%

(Gain) loss on fair value of warrants

1,044

11.2

%

(184)

(1.5)

%

2,620

26.8

%

Loss on fair value of contingent earnout liabilities

–

—

%

–

—

%

437

4.5

%

Loss on warrant cancellation

11,357

121.9

%

–

—

%

–

—

%

Restructuring expense

–

—

%

3,540

28.0

%

–

—

%

Adjusted EBITDA

$

(6,916)

(74.2)

%

$

(14,631)

(115.9)

%

$

(14,873)

(152.0)

%

 

Velo3D, Inc.

NON-GAAP Adjusted Operating Expenses Reconciliation

(Unaudited)

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

(In thousands, except for percentages)

% of Rev

% of Rev

% of Rev

Revenue

$

9,320

100.0

%

$

12,626

100.0

%

$

9,786

100.0

%

Operating expenses

Research and development

1,212

13.0

%

3,082

24.4

%

5,043

51.5

%

Selling and marketing

2,275

24.4

%

1,627

12.9

%

4,809

49.1

%

General and administrative

9,131

98.0

%

16,348

129.5

%

8,783

89.8

%

Total operating expenses

$

12,618

135.4

%

$

21,057

166.8

%

$

18,635

190.4

%

Stock-based compensation in operating expenses

3,866

41.5

%

2,322

18.4

%

4,503

46.0

%

Adjusted operating expenses

$

8,752

93.9

%

$

18,735

148.4

%

$

14,132

144.4

%

 

Velo3D, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended March 31,

2025

2024

Revenue

3D Printer

$

7,523

$

7,660

Recurring payment

—

470

Support services

1,790

1,656

Other

7

—

Total Revenue

9,320

9,786

Cost of revenue

3D Printer

7,540

9,394

Recurring payment

12

315

Support services

1,071

2,892

Total cost of revenue

8,623

12,601

Gross loss

697

(2,815)

Operating expenses

Research and development

1,212

5,043

Selling and marketing

2,275

4,809

General and administrative

9,131

8,783

Total operating expenses

12,618

18,635

Loss from operations

(11,921)

(21,450)

Interest expense

(1,070)

(3,897)

Loss on fair value of warrants

(1,044)

(2,620)

Loss on fair value of contingent earnout liabilities

—

(437)

Loss on warrant cancellation

(11,357)

—

Other income (expense), net

(11)

94

Loss before provision for income taxes

(25,403)

(28,310)

Provision for income taxes

(8)

(4)

Net loss

$

(25,411)

$

(28,314)

Net loss per share:

    Basic

$

(0.13)

$

(3.81)

    Diluted

$

(0.13)

$

(3.81)

 

Velo3D, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data)

March 31,

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

$

3,870

$

1,212

Accounts receivable, net

4,569

3,723

Inventories, net

46,133

49,953

Contract assets

1,295

500

Prepaid expenses and other current assets

5,907

2,336

Total current assets

61,774

57,724

Property and equipment, net

13,691

14,270

Equipment on lease, net

3,673

3,673

Other assets

12,261

13,513

Total assets

$

91,399

$

89,180

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

16,365

$

18,538

Accrued expenses and other current liabilities

3,762

3,511

Debt – current portion

16,152

5,666

Contract liabilities

7,614

10,285

Total current liabilities

43,893

38,000

Long-term debt – less current portion

5,506

—

Contingent earnout liabilities

11

11

Warrant liabilities

13

2,167

Other noncurrent liabilities

9,094

9,338

Total liabilities

58,517

49,516

Commitments and contingencies (Note 13)

Stockholders’ equity:

Common stock, $0.00001 par value - 500,000,000 shares authorized at March 31, 2025
and December 31, 2024, 210,232,762 and 194,909,430 shares issued and outstanding as
of March 31, 2025 and December 31, 2024, respectively

4

4

Additional paid-in capital

488,623

469,994

Accumulated other comprehensive loss

—

—

Accumulated deficit

(455,745)

(430,334)

Total stockholders’ equity

32,882

39,664

Total liabilities and stockholders’ equity

$

91,399

$

89,180

 

Velo3D, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Three Months Ended March 31,

2025

2024

Cash flows from operating activities

Net loss

$

(25,411)

$

(28,314)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization

942

1,396

Amortization of debt discount and deferred financing costs

992

3,171

Stock-based compensation

4,074

5,087

Loss on fair value of warrants

1,044

2,620

Loss on fair value of contingent earnout liabilities

—

437

Loss on warrant cancellation

11,357

—

Changes in assets and liabilities

Accounts receivable

(846)

(2,070)

Inventories

1,989

2,645

Contract assets

(795)

(2,118)

Prepaid expenses and other current assets

(3,407)

1,078

Other assets

1,224

396

Accounts payable

(860)

(4,199)

Accrued expenses and other liabilities

251

(218)

Contract liabilities

(2,671)

(416)

Other noncurrent liabilities

(232)

(18)

Net cash used in operating activities

(12,349)

(20,523)

Cash flows from investing activities

Purchase of property and equipment

—

(6)

Production of equipment for lease to customers

—

(1)

Proceeds from maturity of available-for-sale investments

—

3,500

Net cash provided by investing activities

—

3,493

Cash flows from financing activities

Proceeds from secured convertible notes

15,000

—

Issuance of common stock upon exercise of stock options

—

285

Net cash provided by financing activities

15,000

285

Effect of exchange rate changes on cash and cash equivalents

7

5

Net change in cash and cash equivalents

2,658

(16,740)

Cash and cash equivalents and restricted cash at beginning of period

1,840

25,294

Cash and cash equivalents and restricted cash at end of period

$

4,498

$

8,554

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the total of such amounts shown on the condensed consolidated statements of cash flows:

March 31,

2025

2024

Cash and cash equivalents

$

3,870

$

7,754

Restricted cash (Other assets)

628

800

Total cash and cash equivalents and restricted cash

$

4,498

$

8,554

View original content to download multimedia:https://www.prnewswire.com/news-releases/velo3d-announces-first-quarter-2025-financial-results-302454339.html

SOURCE Velo3D, Inc.

Related Topics:
Continue Reading

Technology

Advanced Process Solutions Elevates Clint Johnson to Vice President of Services and Operations

Published

44 minutes ago

on

October 27, 2026

By

Veteran Semiconductor Leader Brings More Than 20 Years of Operational Excellence, Strategic Growth, and Industry Leadership

DALLAS, Oct. 27, 2026 /PRNewswire/ — Advanced Process Solutions (APS), an industry leader in high precision and high purity manufacturing and process technology solutions, serving the semiconductor, aerospace, electronics, and industrial markets, today announced the promotion of Clint Johnson to Vice President of Services and Operations. As APS continues to expand its presence and capabilities within the semiconductor industry, Johnson’s leadership will play a critical role in advancing the company’s mission, strengthening customer partnerships, and delivering best-in-class service solutions.

“Clint has been an invaluable asset to APS since joining us as Director of Field Services earlier this year,” said Suhas Uppalapati, Chairman of APS. “He has demonstrated exceptional leadership and a relentless focus on operational performance. His dedication to customer success, workforce development, and continuous improvement quickly established him as a key contributor, and we are excited to see him continue to push APS forward in this expanded role.”

Johnson oversees APS’s service and operational functions, ensuring the organization maintains the highest standards of safety, regulatory compliance, quality, and customer satisfaction. His leadership approach is rooted in accountability, collaboration, and operational discipline, creating an environment where teams are empowered to excel while supporting the company’s broader strategic objectives.

“I am honored to step into the role of Vice President of Services and Operations and to work alongside such a talented team,” said Johnson. “The semiconductor and advanced manufacturing sectors are moving at an unprecedented pace. Together, we will continue focusing on safety, quality, and operational execution to ensure APS is uniquely positioned to help our global customers scale, optimize workflows, and meet today’s complex production demands.”

Prior to APS, Johnson spent more than 20 years in operational management at Air Liquide, a world leader in chemical manufacturing. He earned a degree in organizational leadership from East Texas A&M University.

About Advanced Process Solutions (APS)

Advanced Process Solutions (APS) is a leading provider of precision manufacturing, engineered process systems, and ultra-high-purity solutions serving the semiconductor, aerospace, electronics, and advanced industrial markets. With over 25 years of industry experience, APS specializes in chemical delivery and dispensing systems, specialty gas distribution, filtration and purification, precision fabrication, automation and controls, and turnkey process system integration.

Strategically located in the Dallas Metroplex, APS supports the rapidly expanding U.S. semiconductor manufacturing ecosystem, including Texas’s emerging “Silicon Prairie.” To support its continued growth and innovation, APS is expanding into a purpose-built, 100,000-square-foot, high-tech manufacturing facility in Van Alstyne, Texas, featuring a Center of Excellence, state-of-the-art research and development capabilities, and advanced cleanroom facilities. This investment will significantly enhance APS’s manufacturing capacity, engineering capabilities, and ability to deliver next-generation process solutions.

Combining engineering expertise, manufacturing excellence, and an unwavering commitment to quality and safety, APS partners with leading global manufacturers to deliver innovative, reliable, and scalable solutions that enhance operational efficiency and support mission-critical production environments.

For more information, visit www.APSNextGen.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/advanced-process-solutions-elevates-clint-johnson-to-vice-president-of-services-and-operations-302918995.html

SOURCE Advanced Process Solutions

Continue Reading

Technology

From Grid Constraint to AI Growth: Hitachi Vantara and Duraflow Transform Data Center Energy Management for Greater AI and Compute Capacity

Published

44 minutes ago

on

October 27, 2026

By

Hitachi Vantara pilots one of the world’s largest Phase Change Material installations in its Netherlands data center, demonstrating how organizations can use up to 90% less electricity for thermal managementImplementation requires zero water for cooling, reducing the resources needed to support data center operationsThis generates more computing capacity from existing power infrastructure, rather than diverting power to cooling

ZALTBOMMEL, The Netherlands and SANTA CLARA, Calif., Oct. 27, 2026 /PRNewswire/ — As artificial intelligence (AI) accelerates demand for computing power, data centers face a growing challenge: how to increase AI and compute capacity when access to additional electricity is increasingly constrained.

Hitachi Vantara, the data storage, infrastructure and hybrid cloud management subsidiary of Hitachi Ltd. (TSE: 6501), is demonstrating a new approach to address this challenge by showing how data centers can effectively use their power for AI and compute capacity rather than power and cooling. At its data center in the Netherlands, Hitachi Vantara has deployed one of the world’s largest operational Phase Change Material (PCM) installations, using technology developed by Dutch thermal energy company Duraflow.

For more information about Hitachi Vantara’s approach to AI, please visit: https://www.hitachivantara.com/solutions/ai-analytics

Depending on the application, PCM technology can help reduce electricity consumption related to thermal management by up to 90%, while requiring no water for cooling. By reducing the energy needed to manage power and cooling, a greater share of available electrical capacity can be used for computing – an increasingly important consideration as organizations deploy more energy-intensive AI workloads.

Tackling the energy challenge behind AI
Every watt consumed by AI ultimately becomes heat and managing that heat requires as much as 40% of a data center’s total energy needs. At the same time, as AI workloads continue to grow, the ability to convert available electricity into useful computing capacity will increasingly determine how quickly digital infrastructure can expand. This creates a growing challenge for data center operators seeking to increase computing capacity within constrained power infrastructure. In regions where grid congestion or limited access to additional electricity can constrain data center expansion, improving infrastructure efficiency can help organizations make more computing capacity available within their existing power connection.

Hitachi Vantara faced this challenge as demand for high-density computing and AI infrastructure increased. Rather than assuming that more computing required a greater amount of power, the company explored ways to make its existing electrical capacity work harder. The resulting deployment of Duraflow’s PCM technology provides a real-world proof point for this approach at an operational scale.

Real-world performance: 240 kW of cooling with low electrical consumption
The installed system provides a total cooling capacity of 240 kW across two 120 kW PCM units. According to operational monitoring data, the two units collectively consume just 5–8 kW of electricity, depending on operating conditions. For comparison, a conventional DX cooling system delivering the same 240 kW cooling capacity would require an estimated 60–80 kW of compressor power. These operational figures illustrate how PCM-based thermal management can significantly reduce the electricity required for cooling, freeing up more of the data center’s available power capacity for computing.

“This project started with a very practical challenge: how do we grow our computing capacity when access to additional electricity is limited,” said Simon Ninan, Senior Vice President of Business Strategy, Hitachi Vantara. “We realized that if we could dramatically reduce the amount of power required for thermal management, we could make more of our existing electrical capacity available for computing. By partnering with Duraflow, we are demonstrating how smarter energy management can become an important enabler of AI growth.”

The approach also supports Hitachi Vantara’s broader commitment to operating more efficiently and sustainably, including its goal of becoming carbon neutral in Scope 1 and 2 GHG emissions by FY2030.

Building efficiency across the infrastructure stack
The deployment is part of Hitachi Vantara’s broader focus on helping organizations get more value from their infrastructure while managing the growing energy demands of digital workloads.

That approach extends across the infrastructure stack. Hitachi Vantara’s Virtual Storage Platform One (VSP One) Block includes a 4:1 Data Reduction Guarantee and features Dynamic Carbon Reduction technology, which reduces energy consumption by switching CPUs into eco-mode during periods of low activity. Its always-on compression capability allows the system to switch from inline data reduction to post processing, which further reduces energy consumption and helps reduce a CO2 footprint by as much as 40%.

“Addressing the energy demands of AI isn’t about optimizing one part of the business in isolation,” said Courtney Hadden, Sustainability Director, Hitachi Digital. “It’s about working in concert across the organization and with innovative ecosystem partners to find efficiencies at every stage – from the products we build, how we bring them to market, and everything in between. The answer cannot simply be to consume more power. We need to become smarter about how we use the power we already have.”

Dutch innovation, demonstrated at operational scale
Developed in the Netherlands, Duraflow’s PCM technology absorbs thermal energy during periods of peak demand before releasing it in a controlled manner when demand decreases. Unlike conventional cooling approaches that rely continuously on electrically driven refrigeration to remove heat, PCM technology provides a way to manage and store thermal energy more efficiently. The system requires no water for cooling, helping data centers reduce their reliance on water resources while significantly lowering the electricity needed for thermal management.

“Developing technology is one thing; proving that it can operate at this scale in a live, mission-critical environment is another,” said Simon Loerakker, CEO, Duraflow. “Our collaboration with Hitachi Vantara has allowed us to demonstrate the potential of innovation at an unprecedented scale. Together, we are showing that sustainable innovation and the growth of AI infrastructure can go hand in hand.”

For more information on Hitachi Vantara’s AI-enabled infrastructure, please visit: https://www.hitachivantara.com/en-us/products/storage-platforms.

Additional Resources:

Blog: Raising the Stakes for Sustainable, AI-ready InfrastructureBlog: Five Habits That Cut IT Energy Waste, Without Spending MorePress Release: Hitachi Vantara Releases FY2025 Sustainability Report, Highlighting Leadership in Energy-Efficient Infrastructure for AI-Driven WorkloadsWebinar: Green Data: Sustainable Innovations in Data CentersPress Release: Hitachi Vantara Unveils New Virtual Storage Platform One Capabilities to Enable Stronger Cyber Resilience, Performance and Sustainability

About Duraflow
Duraflow develops advanced thermal energy management technology based on Phase Change Materials (PCM). Its independently developed technology enables organizations to significantly reduce energy consumption for thermal management, maximize the use of existing electrical infrastructure and support the sustainable growth of mission-critical digital environments.

About Hitachi Vantara
Hitachi Vantara is transforming the way data fuels innovation. A wholly owned subsidiary of Hitachi Ltd., Hitachi Vantara provides the data foundation the world’s leading innovators rely on. Through data storage, infrastructure systems, cloud management, and digital expertise, the company helps customers build the foundation for sustainable business growth. To learn more, visit www.hitachivantara.com.

About Hitachi, Ltd. 
Through its Social Innovation Business (SIB) that brings together IT, OT (Operational Technology) and products, Hitachi aims to be a global leader in continuously transforming social infrastructure through digital, contributing to a harmonized society where the environment, wellbeing, and economic growth are in balance. Hitachi operates worldwide across four sectors – Digital Systems & Services, Energy, Mobility, and Connective Industries – as well as a Strategic SIB Business Unit focused on new growth areas. With Lumada at its core, Hitachi creates value by combining data, technology, and domain knowledge to solve customer and social challenges. Revenues for FY2025 (ended March 31, 2026) totaled 10,586.7 billion yen, with 606 consolidated subsidiaries and approximately 290,000 employees worldwide. Visit us at www.hitachi.com.

HITACHI is a trademark or registered trademark of Hitachi, Ltd. All other trademarks, service marks, and company names are properties of their respective owners.

View original content to download multimedia:https://www.prnewswire.com/news-releases/from-grid-constraint-to-ai-growth-hitachi-vantara-and-duraflow-transform-data-center-energy-management-for-greater-ai-and-compute-capacity-302920057.html

SOURCE Hitachi Vantara

Continue Reading

Technology

Parks Associates: HDR Is Shaping the Future of Premium Video Entertainment

Published

44 minutes ago

on

October 27, 2026

By

New Parks Associates white paper, developed in partnership with InterDigital, examines how HDR is advancing viewing experiences across streaming, live sports, gaming, and mobile devices

PLANO, Texas, Oct. 27, 2026 /PRNewswire/ — New research from Parks Associates shows high dynamic range (HDR) is becoming a foundational component of premium video entertainment, creating opportunities for television manufacturers, streaming services, and content creators to differentiate through picture quality. The research, High Dynamic Range and the Future of Video, developed in partnership with InterDigital, examines HDR’s expanding role across the entertainment ecosystem.

HDR enhances brightness and contrast and produces richer colors and more lifelike images for the video-viewing experience. The white paper explores how broader device support, growing content availability, and advances in production and distribution are moving HDR from a premium feature toward an expected part of high-quality viewing.

“HDR gives the entertainment industry a powerful way to make improvements in picture quality,” said Michael Goodman, Director, Entertainment Research, Parks Associates. “For manufacturers, it helps demonstrate the value of advanced displays. For streaming services and content owners, it provides an opportunity to deliver a more compelling experience and preserve the creative intent of their programming.”

“Consumers may not always know HDR by name, but they recognize the experience it enables: richer color, deeper contrast and a more lifelike picture,” said Lionel Oisel, Head of Video Labs, InterDigital. “As HDR expands across streaming, live sports, gaming and mobile, the opportunity is to make that premium experience consistent and efficient on every screen. Innovation in HDR, video compression and delivery will be fundamental to making that possible.”

The white paper identifies several developments shaping HDR’s next phase:

Smart TVs are the foundation. Smart TVs are the primary streaming video device in 62% of US internet households with a connected TV device.

Live sports and gaming expand HDR’s relevance. These experiences showcase HDR’s ability to reproduce bright highlights, detailed shadows, and realistic imagery, while pushing improvements in production and real-time processing.

Mobile viewing extends HDR beyond the television. Mobile phones account for 24% of weekly video consumption, with tablets contributing another 11%.

Technology advances improve delivery economics. AI-assisted image processing, cloud-based production, and next-generation codecs such as Versatile Video Coding (VVC) will simplify workflows and deliver HDR more efficiently.

The research also identifies challenges that require continued collaboration to ensure the successful expansion of HDR. Differences in HDR formats, device capabilities, and service implementations can produce inconsistent viewing experiences. Content providers must manage the cost and complexity of supporting multiple formats as audiences move from standard to HDR in their video viewing.

Parks Associates and InterDigital will highlight this research at Future of Video: Business of Streaming, an executive conference for the streaming and video industries on November 17-18 in Marina del Rey, California. Register here. 

For more information, contact Mindi Sue Sternblitz-Rubenstein.

About Parks Associates

Parks Associates helps companies identify new opportunities, refine strategy, and accelerate growth in connected technology markets through data-driven insights and industry expertise. With more than 40 years of experience, the firm delivers proprietary consumer and industry research, market forecasts, and strategic analysis that guide business decisions across personal, connected home, small business, and commercial technology ecosystems. Parks Associates supports clients in navigating evolving markets including AI, security, smart home, broadband, entertainment, energy, multifamily, smart buildings, and connected health.

The firm also fosters industry growth and collaboration by convening thousands of leaders each year through its flagship executive conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.

Mindi Sue Sternblitz-Rubenstein
Parks Associates
972.490.1113
425707@email4pr.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/parks-associates-hdr-is-shaping-the-future-of-premium-video-entertainment-302920326.html

SOURCE Parks Associates

Continue Reading

Trending