Technology
Gaotu Techedu Announces Second Quarter 2024 Unaudited Financial Results
Published
2 years agoon
By
BEIJING, Aug. 27, 2024 /PRNewswire/ — Gaotu Techedu Inc. (NYSE: GOTU) (“Gaotu” or the “Company”), a technology-driven education company and online large-class tutoring service provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights[1]
Net revenues were RMB1,009.8 million, increased by 43.6% from RMB703.1 million in the same period of 2023.Gross billings[2] were RMB1,653.7 million, increased by 87.4% from RMB882.3 million in the same period of 2023.Loss from operations was RMB464.8 million, compared with income from operations of RMB43.3 million in the same period of 2023.Net loss was RMB429.6 million, compared with net income of RMB56.2 million in the same period of 2023.Non-GAAP net loss was RMB418.0 million, compared with non-GAAP net income of RMB63.2 million in the same period of 2023.Net operating cash inflow was RMB386.2 million, increased by 33.8% from RMB288.5 million in the same period of 2023.
Second Quarter 2024 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
For the three months ended June 30,
2023
2024
Pct. Change
Net revenues
703,094
1,009,797
43.6 %
Gross billings
882,325
1,653,692
87.4 %
Income/(loss) from operations
43,311
(464,750)
(1,173.1) %
Net income/(loss)
56,161
(429,550)
(864.9) %
Non-GAAP net income/(loss)
63,159
(418,040)
(761.9) %
Net operating cash inflow
288,542
386,184
33.8 %
[1] For a reconciliation of non-GAAP numbers, please see the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” at the end of this press release. Non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses.
[2] Gross billings is a non-GAAP financial measure, which is defined as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. See “About Non-GAAP Financial Measures” and “Reconciliations of non-GAAP measures to the most comparable GAAP measures” elsewhere in this press release.
Six Months Ended June 30, 2024 Highlights
Net revenues were RMB1,956.7 million, increased by 38.7% from RMB1,410.4 million in the same period of 2023.Gross billings were RMB2,383.1 million, increased by 67.7% from RMB1,421.3 million in the same period of 2023.Loss from operations was RMB542.5 million, compared with income from operations of RMB138.5 million in the same period of 2023.Net loss was RMB441.8 million, compared with net income of RMB170.0 million in the same period of 2023.Non-GAAP net loss was RMB415.0 million, compared with non-GAAP net income of RMB196.8 million in the same period of 2023.Net operating cash inflow was RMB188.7 million, increased by 161.7% from RMB72.1 million in the same period of 2023.
First Six Months 2024 Key Financial and Operating Data
(In thousands of RMB, except for percentages)
For the six months ended June 30,
2023
2024
Pct. Change
Net revenues
1,410,386
1,956,682
38.7 %
Gross billings
1,421,276
2,383,052
67.7 %
Income/(loss) from operations
138,450
(542,452)
(491.8) %
Net income/(loss)
170,014
(441,847)
(359.9) %
Non-GAAP net income/(loss)
196,754
(415,001)
(310.9) %
Net operating cash inflow
72,134
188,748
161.7 %
Larry Xiangdong Chen, the Company’s founder, Chairman and CEO, commented, “We achieved encouraging results in the second quarter, with net revenues increasing 43.6% year-over-year to RMB1.0 billion, reflecting strong accelerating growth momentum. As of June 30, 2024, our deferred revenue reached RMB1.6 billion, representing a 71.5% increase from the same point in time last year, ensuring robust support for our continued growth in the second half of the year.
June 16th marked the tenth anniversary of Gaotu’s founding. Over the past decade, we’ve consistently regarded learning services and teaching quality as the cornerstones of our core competencies, continuously attracting and retaining top-tier talents to drive long-term growth. While expanding rapidly, we have maintained an unwavering focus on operational efficiency. Moving forward, we remain committed to prioritizing customer needs and advancing our mission to ‘make learning better’, thereby creating lasting value for our shareholders.”
Shannon Shen, CFO of the Company, added, “We kicked off the year with robust growth and successfully carried this momentum into the second quarter, further scaling our operations while delivering results that exceeded our expectations in both revenues and gross billings. Gross billings for the first half of the year increased 67.7% to RMB2.4 billion, laying a solid foundation for further revenues growth in the second half of the year. These results reflect our ongoing efforts to boost operational efficiency, address market demand, and enhance teaching quality. Moving forward, we will maintain our focus on core education businesses, expand our product offerings, attract top talents, and refine operations to capitalize on market opportunities and drive long-term, sustainable growth.”
Financial Results for the Second Quarter of 2024
Net Revenues
Net revenues increased by 43.6% to RMB1,009.8 million from RMB703.1 million in the second quarter of 2023, which was mainly due to the continuous year-over-year growth of gross billings as a result of our sufficient and effective response to the strong market demand. Furthermore, our high-quality educational products and learning services resulted in improved recognition of our products.
Cost of Revenues
Cost of revenues increased by 70.0% to RMB313.4 million from RMB184.4 million in the second quarter of 2023. The increase was mainly due to the expansion of instructors and tutors workforce and the increased cost of learning materials.
Gross Profit and Gross Margin
Gross profit increased by 34.3% to RMB696.4 million from RMB518.7 million in the second quarter of 2023. Gross profit margin decreased to 69.0% from 73.8% in the same period of 2023.
Non-GAAP gross profit increased by 33.3% to RMB696.3 million from RMB522.3 million in the second quarter of 2023. Non-GAAP gross profit margin decreased to 69.0% from 74.3% in the same period of 2023.
Operating Expenses
Operating expenses increased by 144.2% to RMB1,161.1 million from RMB475.4 million in the second quarter of 2023. The increase was primarily due to the expansion of employees workforce and a higher expenditure on marketing and branding activities.
Selling expenses increased to RMB835.4 million from RMB324.1 million in the second quarter of 2023.Research and development expenses increased to RMB162.1 million from RMB98.4 million in the second quarter of 2023.General and administrative expenses increased to RMB163.6 million from RMB52.9 million in the second quarter of 2023.
(Loss)/Income from Operations
Loss from operations was RMB464.8 million, compared with income from operations of RMB43.3 million in the second quarter of 2023.
Non-GAAP loss from operations was RMB453.2 million, compared with non-GAAP income from operations of RMB50.3 million in the second quarter of 2023.
Interest Income and Realized Gains from Investments
Interest income and realized gains from investments, on aggregate, were RMB29.0 million, compared with a total of RMB27.4 million in the second quarter of 2023.
Other Income/(Expenses), net
Other income, net was RMB4.6 million, compared with other expenses, net of RMB6.2 million in the second quarter of 2023.
Net (Loss)/Income
Net loss was RMB429.6 million, compared with net income of RMB56.2 million in the second quarter of 2023.
Non-GAAP net loss was RMB418.0 million, compared with non-GAAP net income of RMB63.2 million in the second quarter of 2023.
Cash Flow
Net operating cash inflow in the second quarter of 2024 was RMB386.2 million.
Basic and Diluted Net Loss per ADS
Basic and diluted net loss per ADS were both RMB1.65 in the second quarter of 2024.
Non-GAAP basic and diluted net loss per ADS were both RMB1.61 in the second quarter of 2024.
Share Outstanding
As of June 30, 2024, the Company had 172,491,283 ordinary shares outstanding.
Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments
As of June 30, 2024, the Company had cash and cash equivalents, restricted cash, short-term and long-term investments of RMB4,103.4 million in aggregate, compared with a total of RMB3,953.5 million as of December 31, 2023.
Share Repurchase
In November 2022, the Company’s board of directors authorized a share repurchase program under which the Company may repurchase up to US$30 million of its shares, effective until November 22, 2025. In November 2023, the Company’s board of directors authorized modifications to the share repurchase program, increasing the aggregate value of shares that may be repurchased from US$30 million to US$80 million, effective until November 22, 2025.
As of August 26, 2024, the Company had cumulatively repurchased approximately 7.9 million ADSs for approximately US$27.0 million under the share repurchase program.
Business Outlook
Based on the Company’s current estimates, total net revenues for the third quarter of 2024 are expected to be between RMB1,188 million and RMB1,208 million, representing an increase of 50.5% to 53.0% on a year-over-year basis. These estimates reflect the Company’s current expectations, which are subject to change.
Conference Call
The Company will hold an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, August 27, 2024 (8:00 PM Beijing/Hong Kong Time on Tuesday, August 27, 2024). Dial-in details for the earnings conference call are as follows:
International: 1-412-317-6061
United States: 1-888-317-6003
Hong Kong: 800-963-976
Mainland China: 400-120-6115
Passcode: 5380431
A telephone replay will be available two hours after the conclusion of the conference call through September 2, 2024. The dial-in details are:
International: 1-412-317-0088
United States: 1-877-344-7529
Passcode: 6770960
Additionally, a live and archived webcast of this conference call will be available at http://ir.gaotu.cn/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s ability to continue to attract students to enroll in its courses; the Company’s ability to continue to recruit, train and retain qualified teachers; the Company’s ability to improve the content of its existing course offerings and to develop new courses; the Company’s ability to maintain and enhance its brand; the Company’s ability to maintain and continue to improve its teaching results; and the Company’s ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company’s reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.
About Gaotu Techedu Inc.
Gaotu is a technology-driven education company and online large-class tutoring service provider in China. The Company offers learning services and educational content & digitalized learning products. Gaotu adopts an online live large-class format to deliver its courses, which the Company believes is the most effective and scalable model to disseminate scarce high-quality teaching resources to aspiring students in China. Big data analytics permeates every aspect of the Company’s business and facilitates the application of the latest technology to improve teaching delivery, student learning experience, and operational efficiency.
About Non-GAAP Financial Measures
The Company uses gross billings, non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss), each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes.
The Company defines gross billings for a specific period as the total amount of cash received for the sale of course offerings in such period, net of the total amount of refunds in such period. The Company’s management uses gross billings as a performance measurement because the Company generally bills its students for the entire course fee at the time of sale of its course offerings and recognizes revenue proportionally as the classes are delivered. For some courses, the Company continues to provide students with 12 months to 36 months access to the pre-recorded audio-video courses after the online live courses are delivered. The Company believes that gross billings provides valuable insight into the sales of its course packages and the performance of its business. As gross billings have material limitations as an analytical metrics and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies.
Non-GAAP gross profit, non-GAAP income (loss) from operations and non-GAAP net income (loss) exclude share-based compensation expenses. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based expenses that may not be indicative of its operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company’s business.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” set forth at the end of this release.
The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Exchange Rate
The Company’s business is primarily conducted in China and a significant majority of revenues generated are denominated in Renminbi (“RMB”). This announcement contains currency conversions of RMB amounts into U.S. dollars (“USD”) solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to USD are made at a rate of RMB7.2672 to USD1.0000, the effective noon buying rate for June 28, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on June 28, 2024, or at any other rate.
For further information, please contact:
Gaotu Techedu Inc.
Investor Relations
E-mail: ir@gaotu.cn
Christensen
In China
Ms. Vivian Wang
Phone: +852-2232-3978
E-mail: gotu@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
Gaotu Techedu Inc.
Unaudited condensed consolidated balance sheets
(In thousands of RMB and USD, except for share, per share and per ADS data)
As of December 31,
As of June 30,
2023
2024
2024
RMB
RMB
USD
ASSETS
Current assets
Cash and cash equivalents
636,052
1,414,853
194,690
Restricted cash
33,901
2,397
330
Short-term investments
2,253,910
1,780,283
244,975
Inventory, net
24,596
38,394
5,283
Prepaid expenses and other current assets, net
638,248
594,605
81,821
Total current assets
3,586,707
3,830,532
527,099
Non-current assets
Operating lease right-of-use assets
189,662
424,144
58,364
Property, equipment and software, net
533,531
599,986
82,561
Land use rights, net
26,568
26,165
3,600
Long-term investments
1,029,632
905,829
124,646
Deferred tax assets
11,312
7,332
1,009
Rental deposit
17,742
33,925
4,668
Other non-current assets
18,155
17,941
2,469
TOTAL ASSETS
5,413,309
5,845,854
804,416
LIABILITIES
Current liabilities
Accrued expenses and other current liabilities
(including accrued expenses and other current
liabilities of the consolidated VIE without
recourse to the Group of RMB484,222
and RMB759,764 as of December 31, 2023
and June 30, 2024, respectively)
805,032
1,104,567
151,992
Deferred revenue, current portion of the
consolidated VIE without recourse to the Group
1,113,480
1,391,924
191,535
Operating lease liabilities, current portion
(including current portion of operating lease
liabilities of the consolidated VIE without
recourse to the Group of RMB34,401 and
RMB90,046 as of December 31, 2023 and
June 30, 2024, respectively)
50,494
107,521
14,795
Income tax payable (including income tax
payable of the consolidated VIE without
recourse to the Group of RMB4,210 and
nil as of December 31, 2023 and June 30,
2024, respectively)
4,278
62
9
Total current liabilities
1,973,284
2,604,074
358,331
Gaotu Techedu Inc.
Unaudited condensed consolidated balance sheets
(In thousands of RMB and USD, except for share, per share and per ADS data)
As of December 31,
As of June 30,
2023
2024
2024
RMB
RMB
USD
Non-current liabilities
Deferred revenue, non-current portion of
the consolidated VIE without recourse
to the Group
124,141
190,211
26,174
Operating lease liabilities, non-current
portion (including non-current portion
of operating lease liabilities of the
consolidated VIE without recourse
to the Group of RMB121,277 and
RMB294,494 as of December 31, 2023
and June 30, 2024, respectively)
137,652
308,760
42,487
Deferred tax liabilities(including deferred
tax liabilities of the consolidated VIE
without recourse to the Group of
RMB71,850 and RMB71,079 as of
December 31, 2023 and June 30, 2024,
respectively)
71,967
71,123
9,787
TOTAL LIABILITIES
2,307,044
3,174,168
436,779
SHAREHOLDERS’ EQUITY
Ordinary shares
116
116
16
Treasury stock, at cost
(85,178)
(98,307)
(13,527)
Additional paid-in capital
7,987,957
7,986,214
1,098,940
Accumulated other comprehensive loss
(33,209)
(11,069)
(1,523)
Statutory reserve
50,225
50,225
6,911
Accumulated deficit
(4,813,646)
(5,255,493)
(723,180)
TOTAL SHAREHOLDERS’ EQUITY
3,106,265
2,671,686
367,637
TOTAL LIABILITIES AND TOTAL
SHAREHOLDERS’ EQUITY
5,413,309
5,845,854
804,416
Gaotu Techedu Inc.
Unaudited condensed consolidated statements of operations
(In thousands of RMB and USD, except for share, per share and per ADS data)
For the three months ended June 30,
For the six months ended June 30,
2023
2024
2024
2023
2024
2024
RMB
RMB
USD
RMB
RMB
USD
Net revenues
703,094
1,009,797
138,953
1,410,386
1,956,682
269,248
Cost of revenues
(184,380)
(313,433)
(43,130)
(344,362)
(584,847)
(80,478)
Gross profit
518,714
696,364
95,823
1,066,024
1,371,835
188,770
Operating expenses:
Selling expenses
(324,065)
(835,397)
(114,954)
(601,086)
(1,341,778)
(184,635)
Research and development expenses
(98,402)
(162,101)
(22,306)
(195,379)
(313,708)
(43,168)
General and administrative expenses
(52,936)
(163,616)
(22,514)
(131,109)
(258,801)
(35,612)
Total operating expenses
(475,403)
(1,161,114)
(159,774)
(927,574)
(1,914,287)
(263,415)
Income/(loss) from operations
43,311
(464,750)
(63,951)
138,450
(542,452)
(74,645)
Interest income
19,780
21,274
2,927
33,073
39,947
5,497
Realized gains from investments
7,658
7,732
1,064
18,382
14,284
1,966
Other (expenses)/income, net
(6,153)
4,559
627
5,913
48,256
6,640
Income/(loss) before provision for
income tax and share of results of
equity investees
64,596
(431,185)
(59,333)
195,818
(439,965)
(60,542)
Income tax (expenses)/benefits
(4,250)
1,635
225
(21,619)
(1,882)
(259)
Share of results of equity investees
(4,185)
–
–
(4,185)
–
–
Net income/(loss)
56,161
(429,550)
(59,108)
170,014
(441,847)
(60,801)
Net income/(loss) attributable to
Gaotu Techedu Inc.’s ordinary
shareholders
56,161
(429,550)
(59,108)
170,014
(441,847)
(60,801)
Net income/(loss) per ordinary share
Basic
0.32
(2.48)
(0.34)
0.98
(2.56)
(0.35)
Diluted
0.31
(2.48)
(0.34)
0.95
(2.56)
(0.35)
Net income/(loss) per ADS
Basic
0.21
(1.65)
(0.23)
0.65
(1.71)
(0.23)
Diluted
0.21
(1.65)
(0.23)
0.63
(1.71)
(0.23)
Weighted average shares used in net
income/(loss) per share
Basic
174,603,256
173,044,221
173,044,221
173,839,911
172,686,709
172,686,709
Diluted
179,933,329
173,044,221
173,044,221
179,520,278
172,686,709
172,686,709
Note: Three ADSs represent two ordinary shares.
Gaotu Techedu Inc.
Reconciliations of non-GAAP measures to the most comparable GAAP measures
(In thousands of RMB and USD, except for share, per share and per ADS data)
For the three months ended June 30,
For the six months ended June 30,
2023
2024
2024
2023
2024
2024
RMB
RMB
USD
RMB
RMB
USD
Net revenues
703,094
1,009,797
138,953
1,410,386
1,956,682
269,248
Less: other revenues(1)
20,634
29,233
4,023
36,356
56,500
7,775
Add: VAT and surcharges
42,406
62,586
8,612
86,950
119,993
16,512
Add: ending deferred revenue
922,576
1,582,135
217,709
922,576
1,582,135
217,709
Add: ending refund liability
57,650
85,520
11,768
57,650
85,520
11,768
Less: beginning deferred revenue
770,577
1,003,314
138,061
959,333
1,237,621
170,302
Less: beginning refund liability
52,190
53,799
7,403
60,597
67,157
9,241
Gross billings
882,325
1,653,692
227,555
1,421,276
2,383,052
327,919
Note (1): Include miscellaneous revenues generated from services other than courses.
For the three months ended June 30,
For the six months ended June 30,
2023
2024
2024
2023
2024
2024
RMB
RMB
USD
RMB
RMB
USD
Gross profit
518,714
696,364
95,823
1,066,024
1,371,835
188,770
Share-based compensation expenses(1) in cost of revenues
3,585
(43)
(6)
7,575
2,278
313
Non-GAAP gross profit
522,299
696,321
95,817
1,073,599
1,374,113
189,083
Income/(loss) from operations
43,311
(464,750)
(63,951)
138,450
(542,452)
(74,645)
Share-based compensation expenses(1)
6,998
11,510
1,584
26,740
26,846
3,694
Non-GAAP income/(loss) from operations
50,309
(453,240)
(62,367)
165,190
(515,606)
(70,951)
Net income/(loss)
56,161
(429,550)
(59,108)
170,014
(441,847)
(60,801)
Share-based compensation expenses(1)
6,998
11,510
1,584
26,740
26,846
3,694
Non-GAAP net income/(loss)
63,159
(418,040)
(57,524)
196,754
(415,001)
(57,107)
Note (1): The tax effects of share-based compensation expenses adjustments were nil.
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SOURCE Gaotu Techedu Inc.
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– Whitfield Diffie at Quantum.Tech World 2026
Key security pillars of the MaxKyber attestation include:
Protection against “Harvest Now, Decrypt Later” (HNDL): By utilizing purely CNSA 2.0 algorithms, including ML-KEM-1024 without any classical key exchange variants, MaxKyber secures today’s data against decryption by quantum adversaries.Comprehensive Symbolic Verification: The attestation covers 120 security properties across 11 critical categories, including secrecy, authentication, forward secrecy, identity hiding, and resistance to Replay, Denial of Service, Resource Exhaustion, and Key Compromise Impersonation.Architectural Stability: Beyond its post-quantum cryptographic core, MaxKyber’s protocol architecture is rooted in well-established, operationally proven design patterns, retaining their performance and simplicity.
This foundational security architecture provides the necessary reliability to enable significant performance breakthroughs in the field and the following four key impacts.
Impact I: Unambiguous Security and Mitigation of “Harvest Now, Decrypt Later”
MaxKyber achieves the end-state of post-quantum cryptographic purity by utilizing a pure CNSA 2.0 post-quantum key exchange, without using any classical cryptography, hybrid cryptography, or legacy key exchange variants. Instead, American Binary’s more modern key exchange utilizes ML-KEM-1024 operations to replace the Diffie-Hellman Key Exchange. This approach ensures that modern enterprises are not tethered to the vulnerabilities of legacy components or negative market reactions to hybrid solutions being partially broken. If the classical encryption in hybrid solutions is verifiably broken, markets likely will not wait for forensics to determine whether the rest of the solution remains intact; reputation damage and capital flight will occur immediately.
MaxKyber exclusively employs CNSA 2.0 approved algorithms, specifically ML-KEM-1024 (FIPS 203), AES-256-GCM, and SHA-512/256. This construction provides the highest level of security available today without any loss of existing security properties.
Impact II: Optimal Performance from Mobile and Lossy Environments to High-Performance Scenarios
Historically, high-security protocols have suffered from significant system latency, creating a bottleneck for edge computing and mobile workforces. MaxKyber eliminates these traditional performance trade-offs, enabling high-performance security at the network’s most vulnerable points. One partner benchmarked Ambit Client, powered by MaxKyber, to have 70% faster download speeds than a comparable classically encrypted enterprise VPN.
The MaxKyber protocol optimizes efficiency through an “Authenticated Key Exchange” (AKE) which achieves mutual authentication in a single round trip, dramatically reducing the data burden on the network.
Quantifiably, the AKE saves approximately 4,600 bytes per handshake compared to the next best option. This ultra-low overhead ensures that robust post-quantum security functions reliably on mobile devices and in lossy environments where traditional, bulkier PQC handshakes consistently fail. Reliability in the field is a prerequisite for everything from remote work to warfighting environments, and MaxKyber’s AKE directly facilitates such operational readiness.
Additionally, MaxKyber is well suited for high-performance scenarios such as AI workloads, work with 3D models, and more thanks to Vector Packet Processing and Data Plane Development Kit further reducing overheads to the technical minimums and enabling line-rate speeds for server-to-server use cases.
Impact III: Compliance Savings
As the cost of compliance and diligence cycles for critical infrastructure continues to escalate, proofs can be a shortcut for approval. For CISO and Legal departments, formal verification provides a transparent, “glass-box” view of security that goes beyond traditional testing.
For integration partners, this symbolic proof significantly reduces diligence cycles. By providing an exhaustively checked security profile, American Binary allows partners to shorten the lengthy, costly investigative phases usually required for new cryptographic implementations. Verified compliance is transformed from a hurdle into a catalyst for product development.
Impact IV: R&D Acceleration
For engineering teams looking to integrate this technology and/or customize it, American Binary’s documentation serves as a powerful force multiplier. By providing pre-verified, exhaustive, and high-quality documentation, American Binary provides an extraordinary shortcut to rapid integration.
The scale of the documentation and formal models provided to partners is unprecedented in the VPN industry. This rigorous approach allows integration partners to save months, if not years, of R&D effort.
MaxKyber provides more than just a secure tunnel; it delivers a fully documented, mathematically proven blueprint that accelerates the transition to a quantum-safe future. With MaxKyber, American Binary has rewritten the industry standard for post-quantum network security.
About American Binary
American Binary is a leader in deep-tech cybersecurity, specializing in the development of CNSA 2.0 post-quantum cryptographic solutions. Through advanced rigor and high-performance engineering, American Binary provides the provable foundations for secure, resilient communication in the quantum era.
Learn more at www.ambit.inc
CONTACT: sales@ambit.inc
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SOURCE American Binary
Technology
MetaOptics to Deploy its Direct Laser Writer at the University of Arizona’s Center of Semiconductor Manufacturing to Advance its U.S. Expansion
Published
14 minutes agoon
July 22, 2026By
SINGAPORE, July 21, 2026 /PRNewswire/ — MetaOptics Ltd (Catalist: 9MT) (“MetaOptics” or the “Company,” and together with its subsidiaries, the “Group”), announced that it has entered into an agreement to deploy its key metalens Direct Laser Writer (“DLW”) system at the University of Arizona’s Center of Semiconductor Manufacturing (the “University”). The agreement marks a critical step in advancing its U.S. expansion strategy and its collaborative research with world-class semiconductor stakeholders in Arizona. Installation of the DLW is expected to commence in 2027.
The DLW is designed for a 4-inch wafer to enable quick prototyping and fabrication of metalens samples within weeks. It also supports small-volume production for pilot builds and customer demand evaluation, enabling partners to iterate faster and move from concept to product more efficiently. The deployment of the Company’s DLW will allow prospective customers in the U.S. to physically witness the system in action for their metalens prototyping needs. It will also support collaborative research and evaluation by the University’s researchers under the guidance of Dr. Krishna Muralidharan of the University of Arizona’s Department of Materials Science and Engineering. MetaOptics expects the deployment to generate user feedback and user demonstration opportunities, providing further technical validation of its metalens equipment and products, and serve as a launchpad to scale commercial production and collaboration in the U.S. market.
The deployment of its DLW serves as a key milestone for MetaOptics’ U.S. expansion strategy, prospective U.S. customer engagement, and commercialization roadmap. It also positions the Group to support emerging U.S. initiatives in silicon photonics, co-packaged optics, and integrated photonics, where its metalens technology is directly applicable. The DLW will anchor a “mini foundry” at the University for small-volume, quick turnaround prototyping. Beyond research, the installation serves a commercial purpose: a U.S. demonstration site where potential distributors, universities, and research institutions can physically witness the DLW in operation. It will also produce metalens samples for prospective customers’ evaluation. With Arizona’s fast-growing semiconductor ecosystem home to world-class manufacturers and suppliers, the Company aims to leverage its presence at the University and the wider ecosystem to deepen engagement with prospective industry partners and end customers.
MetaOptics Executive Chairman Thng Chong Kim commented: “By placing our Direct Laser Writer within a world-class semiconductor research environment in Arizona, we will be able to strengthen technical validation and gather valuable user feedback. It also supports our ongoing engagements with potential industry partners and end-customers while showcasing our metalens manufacturing equipment to prospective distributors and institutions across the United States. We believe this deployment reinforces our broader U.S. expansion efforts and deepens our engagement in Arizona’s world-class semiconductor ecosystem.”
About MetaOptics Ltd
MetaOptics Ltd (Catalist: 9MT) is a semiconductor optics company pioneering glass-based metalens solutions enhanced by AI-driven image processing. Using advanced optical design and a scalable 12-inch DUV lithography process, it powers next-generation applications in CPO, mobile, AR VR, automotive, and other emerging markets. Find out more at www.metaoptics.sg.
Forward-Looking Statement
This press release contains forward-looking statements which can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to,” “potential,” “continue” or other similar expressions. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies, its future business development, results of operations and financial condition, its research and development efforts, its ability to attract and retain customers, and its ability to establish and maintain relationships with suppliers and business partners; and assumptions underlying or related to any of the foregoing. All information provided in this press release is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Singapore (HQ)
Metaoptics Technologies Pte Ltd. 81 Ayer Rajah Crescent, #01-45 Singapore 139967
United States
Metaoptics Inc. (USA) 1 Ferry Building, Suite 201 San Francisco, CA 9411
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SOURCE METAOPTICS LTD
Technology
11:11 Systems Announces Strategic Partnership with Cato Networks to Deliver SASE Solution for Distributed Enterprises
Published
1 hour agoon
July 21, 2026By
New Managed Secure Access Service Edge (SASE) solution combines SD-WAN, cloud-native networking and security capabilities with 11:11’s connectivity, cyber resilience and cloud expertise
SYDNEY, July 22, 2026 /PRNewswire/ — 11:11 Systems, a leading managed infrastructure solutions provider, today announced the global availability of its 11:11 Managed Secure Access Service Edge (SASE) solution and a new strategic partnership with Cato Networks.
11:11 Managed SASE is a fully managed secure connectivity solution leveraging Cato Networks AI-native network security platform. This solution brings together intelligent SD-WAN, cloud-delivered security and global connectivity into a single offering. It enables organisations to simplify and secure access across branch offices, data centres, users and cloud environments, reducing complexity without sacrificing performance or control.
Built on the Cato Networks cloud-native SASE platform, 11:11 Managed SASE combines zero trust network access (ZTNA), firewall as a service (FWaaS), secure web gateway (SWG), cloud access security broker (CASB), advanced threat protection and centralised visibility into a unified managed experience. 11:11 also delivers 24x7x365 monitoring and support, incident management integration and operational accountability to help customers limit vendor sprawl, increase agility and free internal teams to focus on higher-value priorities.
The offering is backed by 11:11’s broader networking, cloud and cyber resilience capabilities. Through its global backbone, carrier-agnostic connectivity options and integrated portfolio spanning cloud, backup, disaster recovery and security services, 11:11 gives customers a practical path to modernise network and security architecture while strengthening resilience across the business.
“Enterprises are under pressure to support users, applications and locations that are more distributed than ever, while limiting complexity and improving security,” said Justin Giardina, CTO, 11:11 Systems. “Our Managed SASE solution provides customers with a unified approach to modernising networking and security, along with the visibility, support and flexibility they need to thrive in a rapidly changing environment.”
According to Karl Soderlund, global channel chief, Cato Networks, “As enterprises move beyond fragmented legacy networking and security stacks, they need a simpler way to gain visibility, context and control across hybrid work environments and reduce the operational burden on IT. Through our partnership, we can address these challenges head on and deliver end-to-end visibility and protection in a single service built for the reality of modern work.”
The joint offering is well suited for distributed enterprises, multi-site organisations, hybrid workforce initiatives, SD-WAN refreshes, security modernisation efforts and businesses with limited IT resources. 11:11 meets customers where they are by supporting existing environments, simplifying multi-vendor operations and serving as a single provider accountable for network, security, cloud and data integration.
This partnership expands 11:11’s Network as a Service portfolio and follows Forrester’s inclusion of 11:11 Systems in its report, “The Secure Access Service Edge Services Landscape, Q1 2026.”
About 11:11 Systems
11:11 Systems is a managed infrastructure solutions provider that empowers customers to modernise, protect and manage mission-critical applications and data, leveraging 11:11’s resilient cloud platform. Learn more at www.1111Systems.com and follow 11:11 on LinkedIn.
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SOURCE 11:11 Systems
American Binary Sets New Standard in Post-Quantum Cryptographic VPNs with Symbolic Proof and Attestation
MetaOptics to Deploy its Direct Laser Writer at the University of Arizona’s Center of Semiconductor Manufacturing to Advance its U.S. Expansion
11:11 Systems Announces Strategic Partnership with Cato Networks to Deliver SASE Solution for Distributed Enterprises
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