Daily Journal(DJCO)2024-12-30 23:14Revenue Growth and Composition - Consolidated revenues increased by $2,222,000 (3%) to $69,931,000 in fiscal 2024, driven by Journal Technologies' license and maintenance fees ($4,762,000) and other public service fees ($1,577,000), partially offset by decreased consulting fees ($4,690,000)[174] - Journal Technologies accounted for approximately 76% of the company's revenues in fiscal 2024, with $6,153,000 (9%) derived from foreign countries[175] - Revenues increased by $1,649,000 (3%) to $53,105,000 from $51,456,000 in the prior fiscal year[194] - Licensing and maintenance fees increased by $4,762,000 (20%) to $28,265,000 from $23,503,000[194] - Consulting fees decreased by $4,690,000 (24%) to $15,086,000 from $19,776,000 due to fewer project go-lives[194] - Other public service fees increased by $1,577,000 (19%) to $9,754,000 from $8,177,000 primarily due to increased e-filing fee revenues[194] Operating Expenses and Salaries - Consolidated operating expenses increased by $4,804,000 (8%) to $65,861,000, primarily due to a $3,728,000 (9%) increase in salaries and employee benefits[176] Non-Operating Income and Marketable Securities - Non-operating income increased by $78,758,000 (367%) to $100,208,000, largely due to net realized and unrealized gains on marketable securities of $96,142,000[177] - The fair market value of the company's marketable securities was $358,691,000, with net unrealized gains of $219,597,000 before taxes of $57,100,000[179] Pretax Income and Tax Rate - Consolidated pretax income was $104,278,000 in fiscal 2024, compared to $28,102,000 in the prior year, with net income of $78,113,000 ($56.73 per share)[178] - The effective tax rate for fiscal 2024 was 25.1%, including taxes on realized and unrealized gains on marketable securities[180] Cybersecurity Measures - Journal Technologies hired a Director of Security Operations in August 2024 to oversee cybersecurity strategies and align practices with industry standards[185] - The company employs a multi-layered cybersecurity approach, including threat detection and response, patch management, and network segmentation[187] - The Company maintains a formalized incident response (IR) plan and tests it annually with results reported to senior management[189] - The Company provides regular cybersecurity training for employees, including annual CJIS training and certification[188] - The Company enforces multi-factor authentication (MFA) for all systems and deploys anti-phishing solutions[192] - The Company uses Security Information and Event Management (SIEM) systems for continuous monitoring and logging[192] - The Company maintains a central Risk Register as part of its cybersecurity risk management framework[188] Business Continuity and Disaster Recovery - The Traditional Business and Journal Technologies have implemented Business Continuity Plans and Disaster Recovery (BCP/DR) to minimize downtime and facilitate recovery[191]