This report does not constitute a rating action. Revenues grew about 2% for the full year, driven by lower upfront revenue recognition per ASC 606 as software as a service (SaaS)-based contract bookings continue to ramp up. ARR and SaaS and subscription licenses grew 8% and 19%, respectively, which largely offset declines in perpetual license and maintenance revenues. Revenues from perpetual licenses declined by $20 million in fiscal 2024, but are expected to decrease by only $8 million in 2025 and flatten thereafter. Moreover, despite savings achieved from certain cost optimization initiatives such as its go-to-market realignment and headcount offshoring program, the company?s cash flow burn persisted because of its high debt service payments. Accordingly, in fiscal 2024, Tungsten generated
