Technology
EPAM Reports Results for Second Quarter 2024 and Updates Full Year Outlook
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2 years agoon
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Second quarter revenues of $1.147 billion, down 2.0% year-over-yearGAAP income from operations was 10.5% of revenues and non-GAAP income from operations was 15.2% of revenues for the second quarter Second quarter GAAP diluted EPS of $1.70, a decrease of $0.33, and non-GAAP diluted EPS of $2.45, a decrease of $0.19 on a year-over-year basisFor the full year, EPAM narrows expected range for revenues to $4.590 billion to $4.625 billion, updates expected GAAP diluted EPS to now be in the range of $7.18 to $7.38 and non-GAAP diluted EPS to now be in the range of $10.20 to $10.40For the third quarter, EPAM expects revenues to be in the range of $1.145 billion to $1.155 billion, GAAP diluted EPS to be in the range of $1.75 to $1.83 and non-GAAP diluted EPS to be in the range of $2.65 to $2.73New Share Repurchase Program – On August 1, 2024, the Board of Directors approved a new share repurchase program with authorization to purchase up to $500 million of EPAM common stock
NEWTOWN, Pa., Aug 8, 2024 /PRNewswire/ — EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced results for the second quarter ended June 30, 2024.
“With ongoing exposure to a challenging macro-demand environment, EPAM’s solid performance highlights the Company’s ability to adapt and optimize operations, while continuing to strengthen its offerings and client value propositions,” said Arkadiy Dobkin, CEO & President at EPAM. “We are continuously improving our geographic delivery footprint, while simultaneously strengthening our transformational capabilities, including our GenAI-relevant expertise and assets, and preparing ourselves to be our clients’ partner of choice once the demand environment improves.”
Second Quarter 2024 Highlights
Revenues decreased to $1.147 billion, a year-over-year decrease of $23.6 million, or 2.0%. On an organic constant currency basis excluding the impact of the exit from Russia, revenues were down 2.8% compared to the second quarter of 2023;GAAP income from operations was $120.6 million, a decrease of $23.8 million, or 16.5%, compared to $144.3 million in the second quarter of 2023;Non-GAAP income from operations was $174.5 million, a decrease of $16.3 million, or 8.5%, compared to $190.8 million in the second quarter of 2023;Diluted earnings per share (“EPS”) on a GAAP basis was $1.70, a decrease of $0.33, or 16.3%, compared to $2.03 in the second quarter of 2023; andNon-GAAP diluted EPS was $2.45, a decrease of $0.19, or 7.2%, compared to $2.64 in the second quarter of 2023.
Cash Flow and Other Metrics
Cash provided by operating activities was $186.9 million for the first six months of 2024, compared to cash provided by operating activities of $176.4 million for the first six months of 2023;Cash, cash equivalents and restricted cash totaled $1.792 billion as of June 30, 2024, a decrease of $251.5 million, or 12.3%, from $2.043 billion as of December 31, 2023, largely driven by share repurchases; andTotal headcount was approximately 52,650 as of June 30, 2024. Included in this number were approximately 47,000 delivery professionals, a level consistent with that as of March 31, 2024.
Share Repurchase Program
The Company repurchased 1.160 million shares of its common stock for $214.5 million during the second quarter of 2024 under its previously authorized share repurchase program. During the second quarter of 2023, the Company repurchased 195 thousand shares of its common stock for $41.4 million under its previously authorized share repurchase program. As of June 30, 2024, the Company exhausted the $500 million available for purchases of the Company’s common stock under the previously authorized share repurchase program;On August 1, 2024, the Board of Directors approved a new share repurchase program with authorization to purchase up to $500 million of EPAM common stock; andEPAM may repurchase shares of its common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program will have a term of 24 months, may be suspended or discontinued at any time, and does not obligate the company to acquire any amount of common stock.
2024 Outlook – Full Year and Third Quarter
Full Year
While client demand has stabilized, the Company is expecting no aggregate improvement in demand for the remainder of the year. As a result, EPAM now expects the following for the full year:
The Company narrows its expected range for revenues to $4.590 billion to $4.625 billion for the full year reflecting a year-over-year decline of 1.8% at the midpoint of the range. The Company expects that revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline 2.9% at the midpoint of the range;For the full year, EPAM expects GAAP income from operations to now be in the range of 10.5% to 11.0% of revenues and non-GAAP income from operations to now be in the range of 15.5% to 16.0% of revenues;The Company expects its GAAP effective tax rate to now be approximately 21% and continues to expect its non-GAAP effective tax rate to be approximately 24%; andEPAM expects GAAP diluted EPS to now be in the range of $7.18 to $7.38 and non-GAAP diluted EPS to now be in the range of $10.20 to $10.40. The Company expects weighted average diluted shares outstanding for the year to now be 57.9 million.
Third Quarter
EPAM expects the following for the third quarter:
The Company expects revenues will be in the range of $1.145 billion to $1.155 billion for the third quarter reflecting a year-over-year decline of 0.2% at the midpoint of the range. The Company expects that revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline 1.4% at the midpoint of the range;For the third quarter, EPAM expects GAAP income from operations to be in the range of 10.0% to 11.0% of revenues and non-GAAP income from operations to be in the range of 16.0% to 17.0% of revenues;The Company expects both its GAAP effective tax rate and its non-GAAP effective tax rate to be approximately 24%; andEPAM expects GAAP diluted EPS will be in the range of $1.75 to $1.83 for the quarter, and non-GAAP diluted EPS will be in the range of $2.65 to $2.73 for the quarter. The Company expects weighted average diluted shares outstanding for the quarter of 57.4 million.
Conference Call Information
EPAM will host a conference call to discuss the results on Thursday, August 8, 2024, at 8:00 a.m. EDT. The conference call will be available live on the EPAM website at https://investors.epam.com. Please visit the website at least 15 minutes prior to the call to register for the event. For those who cannot access the live webcast, a replay will be available in the Investor Relations section of the website.
About EPAM Systems
Since 1993, EPAM Systems, Inc. (NYSE: EPAM) has used its software engineering expertise to become a leading global provider of digital engineering, cloud and AI-enabled transformation services, and a leading business and experience consulting partner for global enterprises and ambitious startups. We address our clients’ transformation challenges by fusing EPAM Continuum’s integrated strategy, experience and technology consulting with our 30+ years of engineering execution to speed our clients’ time to market and drive greater value from their innovations and digital investments.
We make GenAI real with our testing, engineering and AI LLM orchestration solutions, EPAM EliteA™, EPAM AI/RUN™ and EPAM DIAL, respectively.
We deliver globally but engage locally with our expert teams of consultants, architects, designers, and engineers, making the future real for our clients, our partners, and our people around the world.
We believe the right solutions are the ones that improve people’s lives and fuel competitive advantage for our clients across diverse industries. Our thinking comes to life in the experiences, products and platforms we design and bring to market.
Added to the S&P 500 and the Forbes Global 2000 in 2021 and recognized by Glassdoor as a Best Workplace in 2023 and 2024, our multidisciplinary teams serve customers across six continents. We are proud to be among the top 15 companies in Information Technology Services in the Fortune 1000 and to be recognized as a leader in the IDC MarketScapes for Worldwide Experience Build Services, Worldwide Experience Design Services and Worldwide Software Engineering Services as well as a leader in the 2023 Gartner® Magic Quadrant™ for Custom Software Development Services, Worldwide.*
Learn more at https://www.epam.com and follow us on LinkedIn.
* Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Non-GAAP Financial Measures
EPAM supplements results reported in accordance with United States generally accepted accounting principles, referred to as GAAP, with non-GAAP financial measures. Management believes these measures help illustrate underlying trends in EPAM’s business and uses the measures to establish budgets and operational goals, communicate internally and externally, for managing EPAM’s business and evaluating its performance. Management also believes these measures help investors compare EPAM’s operating performance with its results in prior periods. EPAM anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude stock-based compensation expenses, acquisition-related costs including amortization of acquired intangible assets, impairment of assets, expenses associated with EPAM’s humanitarian commitment to its professionals in Ukraine, unbilled business continuity resources resulting from Russia’s invasion of Ukraine, costs associated with the geographic repositioning of EPAM employees based outside of Ukraine impacted by the war and geopolitical instability in the region, employee separation costs incurred in connection with restructuring programs including the Company’s exit from Russia, certain other one-time charges and benefits, changes in fair value of contingent consideration, foreign exchange gains and losses, excess tax benefits related to stock-based compensation, and the related effect on income taxes of the pre-tax adjustments. Management also compares revenues on an “organic constant currency basis excluding the impact of the exit from Russia” and an “organic constant currency basis,” which are also non-GAAP financial measures. These measures exclude the effect of acquisitions by removing revenues from an acquired company in the twelve months after completing an acquisition and foreign currency exchange rate fluctuations by translating the current period revenues into U.S. dollars at the weighted average exchange rates of the prior period of comparison. In addition, revenues on an “organic constant currency basis excluding the impact of the exit from Russia” reflect the decision to exit from Russia by removing revenues from clients located in Russia in both the current period and prior period of comparison. Because EPAM’s reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not comparable to GAAP and may not be comparable to similarly described non-GAAP measures reported by other companies within EPAM’s industry. Consequently, EPAM’s non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in EPAM’s consolidated financial statements, which are prepared in accordance with GAAP.
Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets and the broader economy, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company’s most recent Annual Report on Form 10-K and the factors discussed in the Company’s Quarterly Reports on Form 10-Q, particularly under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenues
$ 1,146,597
$ 1,170,206
$ 2,312,062
$ 2,381,147
Operating expenses:
Cost of revenues (exclusive of depreciation and
amortization)
810,857
808,715
1,645,191
1,664,616
Selling, general and administrative expenses
194,058
194,377
392,511
406,264
Depreciation and amortization expense
21,121
22,768
43,267
45,550
Income from operations
120,561
144,346
231,093
264,717
Interest and other income, net
12,036
11,710
27,078
23,231
Foreign exchange gain/(loss)
1,213
(6,010)
(706)
(10,618)
Income before provision for income taxes
133,810
150,046
257,465
277,330
Provision for income taxes
35,165
30,013
42,577
55,005
Net income
$ 98,645
$ 120,033
$ 214,888
$ 222,325
Net income per share:
Basic
$ 1.71
$ 2.07
$ 3.72
$ 3.84
Diluted
$ 1.70
$ 2.03
$ 3.67
$ 3.75
Shares used in calculation of net income per share:
Basic
57,594
57,993
57,716
57,848
Diluted
58,149
59,181
58,540
59,240
EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except par value)
As of
June 30,
2024
As of
December 31,
2023
Assets
Current assets
Cash and cash equivalents
$ 1,787,182
$ 2,036,235
Trade receivables and contract assets, net of allowance of $6,557
and $11,864, respectively
960,866
897,032
Short-term investments
61,492
60,739
Prepaid and other current assets
106,103
97,355
Total current assets
2,915,643
3,091,361
Property and equipment, net
210,378
235,053
Operating lease right-of-use assets, net
129,953
134,898
Intangible assets, net
78,241
71,118
Goodwill
608,072
562,459
Deferred tax assets
213,074
197,901
Other noncurrent assets
67,968
59,575
Total assets
$ 4,223,329
$ 4,352,365
Liabilities
Current liabilities
Accounts payable
$ 30,954
$ 31,992
Accrued compensation and benefits expenses
367,670
412,747
Accrued expenses and other current liabilities
129,539
124,823
Income taxes payable, current
37,466
38,812
Operating lease liabilities, current
36,829
36,558
Total current liabilities
602,458
644,932
Long-term debt
25,501
26,126
Operating lease liabilities, noncurrent
103,654
109,261
Other noncurrent liabilities
93,757
100,576
Total liabilities
825,370
880,895
Commitments and contingencies
Equity
Stockholders’ equity
Common stock, $0.001 par value; 160,000 shares authorized; 56,932 shares issued
and outstanding at June 30, 2024, and 57,787 shares issued and outstanding at
December 31, 2023
57
58
Additional paid-in capital
1,087,411
1,008,766
Retained earnings
2,379,332
2,501,107
Accumulated other comprehensive loss
(69,423)
(39,040)
Total EPAM Systems, Inc. stockholders’ equity
3,397,377
3,470,891
Noncontrolling interest in consolidated subsidiaries
582
579
Total equity
3,397,959
3,471,470
Total liabilities and equity
$ 4,223,329
$ 4,352,365
EPAM SYSTEMS, INC. AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
(Unaudited)
(In thousands, except percent and per share amounts)
Reconciliation of revenue decline as reported on a GAAP basis to revenue decline on an organic constant currency basis
excluding the impact of the exit from Russia is presented in the table below:
Three Months Ended
June 30, 2024
Six Months Ended
June 30, 2024
Revenue decline as reported
(2.0) %
(2.9) %
Foreign exchange rates impact
0.3 %
(0.2) %
Inorganic revenue growth
(1.6) %
(1.2) %
Impact of exit from Russia
0.5 %
0.5 %
Revenue decline on an organic constant currency basis excluding the impact of the exit from
Russia
(2.8) %
(3.8) %
Reconciliation of various income statement amounts from GAAP to non-GAAP for the three and six months ended
June 30, 2024 and 2023:
Three Months Ended
June 30, 2024
Six Months Ended
June 30, 2024
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
Cost of revenues (exclusive of depreciation and
amortization)(1)
$ 810,857
$ (17,504)
$ 793,353
$ 1,645,191
$ (40,520)
$ 1,604,671
Selling, general and administrative expenses(2)
$ 194,058
$ (30,620)
$ 163,438
$ 392,511
$ (64,713)
$ 327,798
Income from operations(3)
$ 120,561
$ 53,945
$ 174,506
$ 231,093
$ 117,003
$ 348,096
Operating margin
10.5 %
4.7 %
15.2 %
10.0 %
5.1 %
15.1 %
Net income(4)
$ 98,645
$ 43,621
$ 142,266
$ 214,888
$ 72,624
$ 287,512
Diluted earnings per share
$ 1.70
$ 2.45
$ 3.67
$ 4.91
Three Months Ended
June 30, 2023
Six Months Ended
June 30, 2023
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
Cost of revenues (exclusive of depreciation and amortization)(1)
$ 808,715
$ (20,314)
$ 788,401
$ 1,664,616
$ (46,135)
$ 1,618,481
Selling, general and administrative expenses(2)
$ 194,377
$ (20,654)
$ 173,723
$ 406,264
$ (47,193)
$ 359,071
Income from operations(3)
$ 144,346
$ 46,451
$ 190,797
$ 264,717
$ 104,348
$ 369,065
Operating margin
12.3 %
4.0 %
16.3 %
11.1 %
4.4 %
15.5 %
Net income(4)
$ 120,033
$ 36,167
$ 156,200
$ 222,325
$ 80,468
$ 302,793
Diluted earnings per share
$ 2.03
$ 2.64
$ 3.75
$ 5.11
Items (1) through (4) above are detailed in the table below with the specific cross-reference noted in the appropriate item.
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Stock-based compensation expenses
$ 16,937
$ 15,416
$ 39,294
$ 31,427
Humanitarian support in Ukraine (a)
567
2,853
1,226
5,293
Unbilled business continuity resources (b)
—
2,045
—
9,415
Total adjustments to GAAP cost of revenues(1)
17,504
20,314
40,520
46,135
Stock-based compensation expenses
18,747
17,694
41,181
40,262
Cost Optimization charges (c)
9,513
—
16,530
—
Humanitarian support in Ukraine (a)
2,119
1,049
4,739
4,666
Other acquisition-related expenses
456
1,340
1,679
1,581
Geographic repositioning (d)
104
230
825
442
One time (benefits)/charges
(319)
341
(241)
242
Total adjustments to GAAP selling, general and administrative expenses(2)
30,620
20,654
64,713
47,193
Amortization of acquired intangible assets
5,821
5,483
11,770
11,020
Total adjustments to GAAP income from operations(3)
53,945
46,451
117,003
104,348
Foreign exchange (gain)/loss
(1,213)
6,010
706
10,618
Change in fair value of contingent consideration included in Interest and other income, net
1,485
1,218
2,535
1,518
Provision for income taxes:
Tax effect on non-GAAP adjustments
(10,632)
(10,151)
(25,027)
(21,665)
Tax shortfall/(excess tax benefits) related to stock-based compensation
103
(7,361)
(20,763)
(13,383)
Net discrete benefit from tax planning (e)
(67)
—
(1,830)
(968)
Total adjustments to GAAP net income(4)
$ 43,621
$ 36,167
$ 72,624
$ 80,468
(a) Humanitarian support in Ukraine includes expenses related to EPAM’s $100 million humanitarian commitment in response to Russia’s invasion of Ukraine to support EPAM professionals and their families in and displaced from Ukraine. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.
(b) Given the uncertainty in the region introduced by Russia’s invasion of Ukraine, EPAM has assigned delivery professionals in locations outside of the region to ensure the continuity of delivery for clients who have substantial delivery exposure to Ukraine or other delivery concerns resulting from the invasion. These employees are not billed to clients and operate largely in a standby or backup capacity. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.
(c) Cost Optimization charges include severance, facilities and contract termination charges incurred in connection with the programs initiated in the third quarter of 2023 and second quarter of 2024. Consistent with the Company’s historical non-GAAP policy, costs incurred in connection with formal restructuring initiatives have been excluded from non-GAAP results as these are one-time and unusual in nature.
(d) Geographic repositioning includes expenses associated with the relocation to other countries of employees based outside of Ukraine impacted by the war and geopolitical instability in the region, and includes the cost of accommodations, travel and food. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.
(e) One-time benefit related to the implementation of tax planning to disregard certain foreign subsidiaries as separate entities for U.S. income tax purposes. Consistent with the Company’s historical non-GAAP policy, the benefit related to the implementation of tax planning has been excluded from non-GAAP results as it is one-time and unusual in nature.
EPAM SYSTEMS, INC. AND SUBSIDIARIES
Reconciliations of Guidance Non-GAAP Financial Measures to Comparable GAAP Financial Measures
(Unaudited)
The below guidance constitutes forward-looking statements within the meaning of the federal securities laws and is based on a
number of assumptions that are subject to change and many of which are outside the control of the Company. Actual results may
differ materially from the Company’s expectations depending on factors discussed in the Company’s filings with the Securities and
Exchange Commission.
Reconciliation of expected revenue decline on a GAAP basis to expected revenue decline on an organic constant currency basis
excluding the impact of the exit from Russia is presented in the table below:
Third Quarter 2024
Full Year 2024
Revenue decline (at midpoint of the range)
(0.2) %
(1.8) %
Foreign exchange rates impact
0.2 %
(0.1) %
Inorganic revenue growth
(1.5) %
(1.3) %
Impact of exit from Russia
0.1 %
0.3 %
Revenue decline on an organic constant currency basis excluding the
impact of the exit from Russia (at midpoint of the range)
(1.4) %
(2.9) %
Reconciliation of expected GAAP to non-GAAP income from operations as a percentage of revenues is presented in the table below:
Third Quarter 2024
Full Year 2024
GAAP income from operations as a percentage of revenues
10.0% to 11.0%
10.5% to 11.0%
Stock-based compensation expenses
4.1 %
3.6 %
Included in cost of revenues (exclusive of depreciation and amortization)
2.0 %
1.8 %
Included in selling, general and administrative expenses
2.1 %
1.8 %
Humanitarian support in Ukraine (a)
0.3 %
0.2 %
Cost Optimization charges (c)
1.0 %
0.7 %
One-time charges and Other acquisition-related expenses (f)
— %
— %
Amortization of acquired intangible assets
0.6 %
0.5 %
Non-GAAP income from operations as a percentage of revenues
16.0% to 17.0%
15.5% to 16.0%
(f) EPAM has not included the impact of potential future One-time charges including asset impairments, unusual gains and losses, expenses incurred in connection with future cost optimization actions, and Other acquisition-related expenses, if any, because the Company is unable to predict these amounts with reasonable certainty.
Reconciliation of expected GAAP to non-GAAP effective tax rate is presented in the table below:
Third Quarter 2024
Full Year 2024
GAAP effective tax rate (approximately)
24 %
21 %
Tax effect on non-GAAP adjustments
(0.8) %
(1.2) %
Excess tax benefits related to stock-based compensation
0.8 %
4.2 %
Non-GAAP effective tax rate (approximately)
24 %
24 %
Reconciliation of expected GAAP to non-GAAP diluted earnings per share is presented in the table below:
Third Quarter 2024
Full Year 2024
GAAP diluted earnings per share
$1.75 to $1.83
$7.18 to $7.38
Stock-based compensation expenses
0.79
2.95
Included in cost of revenues (exclusive of depreciation and amortization)
0.39
1.46
Included in selling, general and administrative expenses
0.40
1.49
Humanitarian support in Ukraine (a)
0.05
0.22
Cost Optimization charges (c)
0.19
0.63
One-time charges and Other acquisition-related expenses (f)
—
0.03
Amortization of acquired intangible assets
0.10
0.41
Change in fair value of contingent consideration
—
0.04
Foreign exchange loss
0.02
0.05
Provision for income taxes:
Tax effect on non-GAAP adjustments
(0.23)
(0.89)
Excess tax benefits related to stock-based compensation
(0.02)
(0.39)
Net discrete benefit from tax planning (e)
—
(0.03)
Non-GAAP diluted earnings per share
$2.65 to $2.73
$10.20 to $10.40
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SOURCE EPAM Systems, Inc.
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How the Awards Were Judged
This year, the AMEC Global Communication Effectiveness Awards adopted a threshold-based judging model, under which each entry is evaluated against fixed criteria for excellence rather than against other entries. To protect the integrity of the process, judges are not permitted to use generative AI tools to support or inform their evaluations.
The judging places the greatest emphasis on real-world effectiveness: how reliable the findings are, whether they were acted on, and how they shape future communications planning and strategy. These priorities are reflected in PRISM AI’s approach, with its integrated measurement methodology and multilingual contextual analysis designed to address these criteria, delivering dependable measurement and insights that inform business decisions.
Measuring Impact, Not Just Volume
PRISM AI measures the impact of communications, not just the volume of coverage. The platform is built around three core concepts from AMEC’s Barcelona Principles 3.0: outcomes over outputs, quality plus quantity, and transparency. To put these principles into practice, it uses a dual-metric system made up of the PR Score and the Communications Impact Index.
Underpinning this approach is the platform’s ability to handle data at scale. To track coverage across a fragmented global media landscape, PRISM AI processes large volumes of articles in real time and uses large language models to interpret coverage across languages and markets, producing more meaningful and comparable insights.
Measurable Gains in Efficiency and Reliability
Since its introduction, PRISM AI has improved the efficiency and reliability of LG’s global communications workflows. Its AI-powered filtering removes more than 78 percent of spam and irrelevant content with over 95 percent accuracy. Media monitoring now covers 200 countries, up from 53, and tracked brands have grown from 5 to 30. The time spent on reporting has been reduced from approximately one month to one hour.
Growing International Recognition
As LG Group advances AI transformation (AX) across its businesses, PRISM AI has become an internationally recognized example of AI-driven data collection and analysis in a specialized professional field. The AMEC recognition follows the platform’s win in the Best AI Tool or Product category at the 2026 IN2 SABRE Awards Asia-Pacific, held in Singapore this August.
“Winning three AMEC Awards for PRISM AI is especially meaningful, not only because it highlights our efforts in advancing AI-powered communications measurement, but also because the recognition comes directly from the PR industry’s most respected global body,” said Cho Jung-bum, head of the AX Center at LG Electronics. “We will continue to refine PRISM AI’s methodology while expanding its capabilities and scope, further enhancing its value as a solution for driving better business decisions.”
About LG Electronics, Inc.
LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 75,000. LG’s four Companies – Home Appliance Solution, Media Entertainment Solution, Vehicle Solution and Eco Solution – combined for global revenue of over KRW 89 trillion in 2025. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, automotive components and solutions, and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LG.com/global/newsroom/ for the latest news.
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SOURCE LG Electronics, Inc.
Technology
COMAU RECEIVES NIO QUALITY PREMIUM PARTNER RECOGNITION FOR THE SECOND TIME
Published
28 minutes agoon
November 12, 2026By
SHANGHAI, Nov. 12, 2026 /PRNewswire/ — Comau has been recognized with NIO’s Quality Premium Partner at the 2026 NIO Partner Day, marking the second time the company has received this recognition. Jeff Yuan, Chief APAC Officer at Comau, attended the event and accepted the award.
The NIO Quality Premium Partner (NQPP) is part of the supplier evaluation program of NIO, one of the world’s leading premium smart EV pioneers. The program assesses partners across key areas including part quality, delivery execution, engineering support and responsiveness. The recognition is awarded to suppliers that demonstrate consistent operational performance and sustained value creation across the product lifecycle. For Comau, the second recognition further confirms its engineering execution strength and long-term manufacturing support capabilities.
As a partner of NIO’s e-drive assembly lines, Comau has been a key contributor to the automaker’s electric drive manufacturing operations with advanced automation solutions. Since the start of production, the systems have delivered stable performance and supported large-scale production ramp-up and the successful launch of multiple vehicle programs.
Through a modular and flexible design approach, Comau has enabled future-ready capabilities for product upgrades, process optimization and capacity expansion. Supported by a customer-centric philosophy and a fast-response execution model, Comau has ensured technical compliance and on-time delivery while improving coordination efficiency and overall project execution, strengthening the long-term value of the partnership.
“This recognition reflects Comau’s continued commitment to execution excellence,” said Jeff Yuan. “NIO’s high standards in quality and innovation continue to challenge us to refine our processes and improve efficiency. As the partnership evolves, we will continue to support next-generation intelligent manufacturing with our automation and engineering capabilities.”
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SOURCE Comau
Technology
Geotab Launches GO Anywhere Plus in Malaysia to Help Businesses Improve Asset Visibility and Utilisation
Published
28 minutes agoon
November 12, 2026By
New asset tracking solution helps organisations locate and manage valuable powered and non-powered assets across distributed operations
KUALA LUMPUR, Malaysia, Nov. 12, 2026 /PRNewswire/ — Geotab, a global leader in connected operations, video telematics and AI-powered insights, today announced the launch of GO Anywhere Plus in Malaysia, expanding access to enhanced asset tracking capabilities that help organisations better monitor and manage valuable powered and non-powered assets across their operations.
Malaysia’s transportation and storage sector continued to expand in 2025. According to the Department of Statistics Malaysia, the transportation and storage subsector grew by 9.0% in 2025, following 10.9% growth in 2024.
For organisations managing vehicles, trailers, equipment and other valuable assets across multiple locations, maintaining visibility can help businesses better understand how resources are deployed and utilised. This comes as Malaysia continues to advance the adoption of smarter logistics technologies, with the Malaysian Investment Development Authority highlighting real-time tracking of goods and assets as one capability that can support greater visibility across logistics operations.
While organisations may use telematics to monitor fleet vehicles, non-powered assets such as trailers, containers and equipment may require different approaches to maintaining visibility. GO Anywhere Plus brings fleet and asset intelligence together, giving organisations greater insight into asset location and usage across their operations.
Fully integrated with MyGeotab®, GO Anywhere Plus enables organisations to manage vehicles and assets through a single platform. Beyond location tracking, the solution provides insights into asset usage, including ignition status and engine hours for powered equipment, to support maintenance planning, asset recovery and more effective resource allocation.
“As Malaysia’s logistics ecosystem evolves, organisations are looking at how technology and data can support more efficient management of the assets behind their operations,” said Ezanne Soh, Associate Vice President, Southeast Asia, Geotab. “For businesses managing vehicles alongside equipment and other mobile assets, bringing fleet and asset intelligence together can provide a clearer operational picture. Greater insight into how assets are deployed and utilised can help organisations make more informed decisions and manage resources more effectively.”
Helping Organisations Improve Asset Visibility and Resource Utilisation
As organisations manage assets across different locations and operations, understanding where those assets are and how they are being utilised can support better deployment decisions, equipment availability and resource allocation.
GO Anywhere Plus helps organisations:
Know Where Assets Are: Monitor the location of powered and non-powered assets through a single platform.Maximise Asset Utilisation: Better understand asset usage to support deployment decisions, improve productivity and reduce unnecessary expenditure.Protect Valuable Equipment: Support the recovery of misplaced or stolen assets while reducing time spent searching for critical equipment.
Together, these capabilities give organisations greater oversight of valuable assets across their operations, helping them manage resources more effectively.
The launch of GO Anywhere Plus further expands Geotab’s connected operations capabilities in Malaysia, helping organisations bring fleet and asset data together to support more efficient, connected operations.
For more information about GO Anywhere Plus, please visit: https://www.geotab.com/apac/products/go-anywhere-plus/
About Geotab
Geotab is a global leader in connected operations, video telematics and AI-powered insights. Trusted by more than 100,000 customers — from small and mid-size fleets to Fortune 500 enterprises and public-sector organisations, including the U.S. federal government, Geotab connects approximately 6 million vehicles and assets and processes 100 billion data points daily. With ISO/IEC 27001:2022, SOC2, FIPS 140-3 and FedRAMP authorisations, Geotab’s open platform and 700+ partner ecosystem unify safety, compliance and operations in a single system. Our mission: a safer, more efficient, and more sustainable world in motion. Learn more at www.geotab.com/apac/ and follow us on LinkedIn or visit Geotab News and Views.
GEOTAB and GEOTAB MARKETPLACE are registered trademarks of Geotab Inc. in Canada, the United States and/or other countries.
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SOURCE Geotab
LG ELECTRONICS’ PRISM AI WINS THREE HONORS AT 2026 AMEC AWARDS
COMAU RECEIVES NIO QUALITY PREMIUM PARTNER RECOGNITION FOR THE SECOND TIME
Geotab Launches GO Anywhere Plus in Malaysia to Help Businesses Improve Asset Visibility and Utilisation
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