BEIJING, Aug. 17 /PRNewswire-Asia-FirstCall/ -- Fiscal Year 2009 Financial Highlights -- Revenues of $157.5 million, an increase of 29.6% year-over-year -- Gross margin of 34.7%, increased from 30.1% for prior year -- Non-GAAP net income of $25.7 million, a 37.8% increase as compared to $18.7 million for fiscal 2008 -- $40.1 million net cash generated from operations for fiscal year 2009; cash and cash equivalents of $128.9 million as of year end -- $188.9 million backlog, as compared to $178.5 million year-over-year -- DSO of 147 days, as compared 167 days year-over-year Q4 Financial Highlights -- Revenues of $44.8 million, an increase of 40.2% year-over-year -- Non-GAAP net income of $6.3 million, as compared to $5.9 million year-over-year -- $8.9 million net cash generated from operations for the quarter ended on June 30, 2009; -- $188.9 million backlog, as compared to $177.7 million quarter-over-quarter
Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) ("Hollysys" or the
"Company"), a leading provider of automation and control technologies and
applications in
Dr.
"During this quarter, Hollysys won a contract to supply its train control
center products (TCC) to
Dr. Wang continued, "We are honored to be named as one of "
Fourth Quarter and Fiscal Year 2009 Unaudited Financial Results Summary
To facilitate a clear understanding of Hollysys operational result, a summary of unaudited non-GAAP financial results is included below.
In USD thousands, except share numbers and EPS Three Months ended June 30, June 30, % 2009 2008 Change Revenues $44,772 31,929 40.2% Integrated Contract Revenue $41,791 28,883 44.7% Products Sales $2,981 3,046 -2.1% Cost of Revenues $29,779 20,523 45.1% Gross Profit $14,993 11,406 31.4% Total Operating Expenses $6,905 4,313 60.1% Selling $2,327 2,652 -12.3% General and Administrative $2,752 2,186 25.9% Research and Development $3,593 972 269.5% VAT Refunds $(1,767) (1,497) 18.1% Income from Operations $8,088 7,093 14.0% Non-GAAP Net Income $6,342 5,855 8.3% Basic Non-GAAP EPS $0.14 0.13 3.5% Diluted Non-GAAP EPS $0.14 0.13 3.0% Amortization of discount and interest on notes payable $-- -- related to bridge loan Stock-based Compensation Cost $22,240 -- for Incentive Shares Stock-based Compensation Cost $131 37 253.8% for Options Net Income (GAAP) $(16,029) 5,818 -375.5% Basic GAAP EPS $(0.35) 0.13 -363.2% Diluted GAAP EPS $(0.35) 0.13 -361.9% Basic Weighted Average Common 45,986,570 43,942,614 4.7% Shares Outstanding Diluted Weighted Average 46,233,857 43,944,911 5.2% Common Shares Outstanding Year ended June 30, June 30, % 2009 2008 Change Revenues $157,502 121,499 29.6% Integrated Contract Revenue $149,303 112,357 32.9% Products Sales $8,199 9,142 -10.3% Cost of Revenues $102,924 84,871 21.3% Gross Profit $54,578 36,628 49.0% Total Operating Expenses $22,329 16,857 32.5% Selling $10,022 9,680 3.5% General and Administrative $9,422 9,504 -0.9% Research and Development $8,829 3,834 130.3% VAT Refunds $(5,944) (6,161) -3.5% Income from Operations $32,249 19,771 63.1% Non-GAAP Net Income $25,708 18,652 37.8% Basic Non-GAAP EPS $0.57 0.50 15.5% Diluted Non-GAAP EPS $0.57 0.50 15.3% Amortization of discount and interest on notes payable -- 3,244 -100.0% related to bridge loan Stock-based Compensation Cost $39,240 17,000 130.8% for Incentive Shares Stock-based Compensation Cost $319 85 277.7% for Options Net Income (GAAP) $(13,851) (1,677) 725.9% Basic GAAP EPS $(0.31) (0.04) 591.9% Diluted GAAP EPS $(0.31) (0.04) 590.8% Basic Weighted Average Common 44,950,833 37,658,437 19.4% Shares Outstanding Diluted Weighted Average 45,023,755 37,658,437 19.6% Common Shares Outstanding
For the three months ended
-- $18.8 million, or 45.0%, related to Industrial Automation & Control; -- Rail and subway was $22.8 million, or 54.5%, of which $15.4 million, or 36.7%, was from Rail Signaling and Control projects, and $7.4 million, or 17.8%, was from Subway System Integration projects; and -- $0.2 million, or 0.5%, related to Nuclear Plant Control projects.
For fiscal year 2009, total revenues increased 29.6% to
-- $81.5 million, or 54.6%, related to Industrial Automation & Control; -- Rail and subway was $59.7 million, or 40.0%, of which $31.6 million, or 21.2%, was from Rail Signaling and Control projects, and $28.1 million, or 18.8%, was from Subway System Integration projects; and -- $6.3 million, or 4.2%, related to Nuclear Plant Control projects.
For the three months ended
For fiscal year 2009, Hollysys' total cost of revenues was
As a percentage of total revenues, overall gross margin was 33.5% for the
three months ended
As a percentage of total revenues, overall gross margin was 34.7% for fiscal year 2009, significantly increased from 30.1% for the prior year. The gross margin for integrated contracts was 33.4% for fiscal 2009, compared to 27.5% year over year, mainly due to the revenue mix shifting towards higher margin businesses.
For the three months ended
For fiscal 2009, selling expenses were
General and administrative expenses excluding non-cash stock-based
compensation expense were
General and administrative expenses excluding non-cash stock-based
compensation expense were
Research and development expenses were
Research and development expenses were
For the three months ended
For fiscal year 2009, non-GAAP net income excluding non-cash stock
compensation cost was
Backlog Highlights
Hollysys' backlog as of
-- $65.3 million related to Industrial Automation & Control, or 34.7% of the total backlog; -- $60.1 million related to System Integration projects for Subway, or 31.8% of the total backlog; -- $58.1 million related to Rail Signaling and Control projects, or 30.7% of the total backlog; -- $5.4 million related to Nuclear and other miscellaneous contracts, or 2.8% of the total backlog.
Cash Flow Highlights
Hollysys generated operating cash flow of
Balance Sheet Highlights
As of
Outlook for FY 2010
Dr. Wang concluded, "Given the tangible impacts from the Chinese
government's stimulus plan and our leadership position in some of the most
beneficial end markets in
Based on our operating results for fiscal 2009, we project our fiscal 2010
revenues to be in the range of
Conference Call
Management will discuss the current status of the Company's operations
during a conference call at
1-866-519-4004 (USA) 800-819-0121 (China Landline) 400-620-8038 (China Mobile) + 65-67357955 (International)
In addition, a recorded replay of the conference call will be accessible within 24 hours via Hollysys' website at: http://www.hollysys.com.sg/home/pubdown/180809.zip
About Hollysys Automation Technologies, Ltd.
Hollysys Automation Technologies is a leading provider of automation and
control technologies and applications in
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys' management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For further information, please contact:
Hollysys Automation Technologies, Ltd.
Web: http://www.hollysys.com
Jennifer Zhang
Investor Relations
Tel: +86-10-5898-1386
Email: investors@hollysys.com
Or
Serena Wu
Investor Relations
Tel: +1-646-593-8125
Email: serena.wu@hollysys.com
HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In US Dollars)
Three months ended June 30, Fiscal Year
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Audited)
Revenues
Integrated contract
revenue $41,791,402 $28,882,564 $149,303,309 $112,357,126
Products sales 2,980,910 3,046,301 8,198,758 9,141,626
Total revenues 44,772,312 31,928,865 157,502,067 121,498,752
Cost of integrated
contracts 28,065,525 19,362,285 99,423,487 81,414,648
Cost of products sold 1,713,861 1,160,473 3,500,471 3,456,398
Gross profit 14,992,926 11,406,107 54,578,109 36,627,706
Operating expenses
Selling 2,326,647 2,651,539 10,021,832 9,680,284
General and
Administrative 25,122,689 2,222,791 48,981,078 26,588,771
Research and
Development 3,592,739 972,364 8,829,402 3,833,925
VAT refunds (1,767,347) (1,496,602) (5,943,701) (6,160,583)
Total operating
expenses 29,274,728 4,350,092 61,888,611 33,942,397
Income (loss) from
operations (14,281,802) 7,056,015 (7,310,502) 2,685,309
Other income
(expense), net (60,291) 51,934 723,269 14,936
Share of net gains
of equity investees 45,619 221,453 178,167 693,115
Government subsidy 510,956 730,274 1,760,023 3,159,229
Interest expense, net (227,587) (373,980) (954,078) (4,304,170)
Income (loss) before
income taxes (14,013,105) 7,685,696 (5,603,121) 2,248,419
Income taxes expenses 841,276 407,465 3,061,141 1,092,477
Income (loss) before
minority interest (14,854,381) 7,278,231 (8,664,262) 1,155,942
Minority interest 1,174,409 1,459,986 5,186,802 2,833,120
Net income (loss) $(16,028,790) $5,818,245 $(13,851,064) $(1,677,178)
Weighted average
number of common
shares 45,986,570 43,942,614 44,950,833 37,658,437
Weighted average
number of diluted
common shares 46,233,857 43,944,911 45,023,755 37,658,437
Basic earnings
(loss) per share (0.35) 0.13 (0.31) (0.04)
Diluted earnings
(loss) per share (0.35) 0.13 (0.31) (0.04)
Other comprehensive
income (loss)
Net income (loss) (16,028,790) 5,818,245 (13,851,064) (1,677,178)
Translation adjustments 106,963 3,068,060 538,033 9,490,632
Comprehensive income
(loss) $(15,921,827) $8,886,305 $(13,313,031) $7,813,454
HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS
(In US Dollars)
June 30, 2009 March 31, 2009
(Unaudited) (Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $128,882,666 $106,237,008
Contract commitment deposit
in banks 5,504,375 6,125,887
Accounts receivable, net of
allowance for doubtful
accounts of $6,276,670 and
$5,781,307 56,548,509 55,000,421
Cost and estimated earnings
in excess of billings, net
of allowance for doubtful
accounts of $744,113 and
$787,460 51,094,660 45,123,125
Other receivables, net of
allowance for doubtful
accounts of $178,532 and
$191,648 4,148,842 3,794,761
Advances to suppliers 7,867,856 7,393,679
Amount due from related parties 7,203,058 7,021,251
Inventories, net of provision
of $1,114,140 and $427,789 18,837,270 21,756,105
Prepaid expenses 1,368,918 1,551,788
Deferred tax assets 319,737 958,096
Prepayment for minority interest 2,195,582 --
Total current assets 283,971,473 254,962,121
Property, plant and
equipment, net 47,102,749 45,560,157
Long term investments 13,570,578 10,523,337
Long term deferred expenses 91,779 107,013
Deferred tax assets 706,943 647,953
Total assets 345,443,522 311,800,581
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term bank loans 5,854,887 5,851,461
Current portion of long- term loans 5,123,026 7,314,326
Accounts payable 37,421,717 27,696,334
Deferred revenue 21,072,540 27,722,572
Accrued payroll and related expense 4,162,851 4,209,740
Income tax payable 1,397,706 1,871,771
Warranty liabilities 1,631,407 2,136,529
Other tax payables 9,152,197 6,965,456
Accrued liabilities 2,634,107 2,707,546
Amounts due to related parties 1,464,683 1,455,552
Deferred tax liabilities 277,337 377,363
Construction cost payable 10,929,116 11,702,921
Total current liabilities 101,121,574 100,011,571
Long-term bank loans 36,593,041 11,702,921
Long-term bonds payable 11,709,773 11,702,921
Total liabilities 149,424,388 123,417,413
Minority interest 22,479,241 21,292,467
Commitments and contingencies -- --
Stockholder's equity
Common stock, par value $0.001 per
share, 100,000,000 shares
authorized, 49,942,614 and
45,942,614 shares issued
and outstanding 49,943 45,943
Additional paid-in capital 131,220,209 108,853,190
Appropriated earnings 15,135,442 11,676,276
Retained earnings 13,232,254 32,720,210
Cumulative translation adjustments 13,902,045 13,795,082
Total stockholder's equity 173,539,893 167,090,701
Total liabilities, minority interests
and stockholders' equity $345,443,522 $311,800,581
HOLLYSYS AUTOMATION TECHNOLOGIES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In US Dollars)
Three months Year ended
ended
June 30, June 30,
2009 2009
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income (loss) $(16,028,790) $(13,851,064)
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Minority interest 1,174,409 5,186,802
Depreciation and amortization 541,183 2,241,344
Allowance for doubtful accounts 456,953 1,145,770
Provision for inventories 686,351 517,694
Loss on disposal of property, plant and
equipment 10,846 58,133
Share of net losses (gains) from equity
investees (45,619) (178,167)
Gain on disposal of an equity investee -- (400,556)
Amortization of expenses accrued for
bond payable 15,299 61,222
Stock-based compensation 22,371,019 39,559,026
Deferred tax assets 479,343 530,229
Loss on deemed acquisition of a
subsidiary -- 18,962
Changes in operating assets and
liabilities:
Accounts receivable (7,989,692) (5,784,288)
Inventories 2,232,484 5,311,489
Advance to suppliers (474,177) (861,429)
Other receivables (281,095) (573,733)
Deposits and other assets 565,797 (1,975,917)
Due from related parties 368,546 (4,581,972)
Accounts payable 10,416,426 13,056,177
Advance from customers (6,650,032) 397,735
Accruals and other payable (625,449) (2,748,314)
Due to related parties 9,131 (17,671)
Tax payable 1,712,676 3,015,986
Net cash provided by operating
activities 8,945,609 40,127,458
Cash flows from investing activities:
Purchase of property, plant and
equipment (3,325,665) (8,728,334)
Proceeds from disposing property, plant
and equipment 6,192 13,271
Repayment from related parties -- 1,134,090
Acquisition of long term investments (3,661,414) (3,895,781)
Proceeds from disposal of an equity
investee 55,354 2,103,136
Dividends from long-term investment -- 69,568
Acquisition of a subsidiary, net of
cash acquired -- (439,374)
Prepayment for minority interest (2,196,869) (2,196,869)
Net cash used in investing activities (9,122,402) (11,940,293)
Cash flows from financing activities:
Proceeds from short-term bank loans -- 1,464,579
Proceeds from long-term bank loans 24,896,130 36,614,479
Repayments of long-term bank loans (2,196,869) (2,196,869)
Net cash provided by financing
activities 22,699,261 35,882,189
Effect of foreign exchange rate changes 123,190 562,754
Net increase in cash and cash
equivalents $22,645,658 $64,632,108
Cash and cash equivalents, beginning
of period 106,237,008 64,250,558
Cash and cash equivalents, end of
period $128,882,666 $128,882,666
Reconcile GAAP Net Income (Loss) to Non-GAAP Net Income
The following table provides more details on the reconciliations between
GAAP financial measures that are most directly comparable to non-GAAP
financial measures.
Three months ended Fiscal year
June 30,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net income (loss)
$(16,028,790) $5,818,245 $(13,851,064) $(1,677,178)
Adjustments:
Amortization of discount
and interest on notes
payable related to
bridge loan -- -- -- 3,244,434
Stock-based
compensation
cost for incentive
shares 22,240,000 -- 39,240,000 17,000,000
Stock-based
compensation
cost for options 131,019 37,028 319,026 84,473
Non-Gaap Net
Income (Loss) $6,342,229 $5,855,273 $25,707,962 $18,651,729
SOURCE Hollysys Automation Technologies, Ltd.