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Hollysys Automation Technologies Reports Unaudited Financial

发布时间:2019-02-01 编辑:AG集&#


Q3 FY 2010 Highlights

-- Unprecedented backlog reported at $242.3 million as of March 31, 2010

-- Revenues of $33.4 million, as compared to $22.9 million year over year, representing a 45.7% increase

-- Non-GAAP net income attributable to Hollysys of $5.2 million, as compared to $2.1 million year over year, representing a 154.0% increase

BEIJING, May 13 /PRNewswire-Asia-FirstCall/ -- Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) ("Hollysys" or the "Company"), a leading provider of automation and control technologies and applications in China, today announced its unaudited financial results for its fiscal third quarter of fiscal year 2010 ended March 31, 2010 (see attached tables).

Dr. Changli Wang, Hollysys' Chief Executive Officer, stated, "We are pleased to report a strong fiscal 2010 third quarter with solid financial and operational results. Our financials were significantly improved on a year-on-year basis, and our operational status and sales pipeline remained solid. I would like to discuss some of the key events that took place during this quarter."

"We are excited to report that during the March quarter, we signed a USD $2.26 million high-speed railway signaling contract to supply our on-ground control product TCC for the Changchun-Jilin intercity high-speed railway. The 108.16km Changchun-Jilin high-speed railway line is designed with travelling speed of 200kph with five railway stations, and is expected to be commissioned by the end of 2010. We will continue to leverage on our solid leading positioning in China's high-speed rail signaling market to capture our fair share in China's aggressive high-speed railway network expansion.

"Also in the March quarter, we signed a follow-on contract to supply our proprietary subway SCADA systems for the Phase Two of Beijing Subway Line 10, with the contract size of USD $17.2 million, pursuant to our successful SCADA system implementation for the Phase One portion of the same line. The Phase Two of Subway Line 10 is 32.44 km in length with 24 stops. This follow-on contract win with Beijing Subway Authority is a further validation of Hollysys' well-established brand name in China's fast-growing subway automation market, which we believe will continue to lay solid grounds for the Company to gain quick market acceptance for its future subway automation product offerings, such as the safety-critical subway signaling systems.

"In the March quarter, we have successfully completed the non-controlling interest buyout of acquiring 24.11% of non-controlling interest in Beijing Hollysys, one of the operating subsidiaries of the listing entity. Hollysys Automation Technologies Ltd. now owns 100% of Beijing Hollysys, which mainly engages in high-speed railway, subway, and nuclear automation businesses. As these national high-growth infrastructure sectors continue its momentum, Beijing Hollysys will contribute its earnings growth in the years to come. The total consideration of the transaction is in-line with the management's estimates, hovering around USD 59 - 61 million, with approximately 4.4 million new shares issued and RMB 67.6M paid out at the end of March."

Dr. Wang continued, "I'd also like to take note of the exciting nuclear automation breakthrough achieved by our nuclear joint venture with China Guangdong Nuclear Power Holding Co., Ltd (CGNPC), China Techenergy Co., Ltd. (CTEC), in being granted China's first-ever permit to design and manufacture its proprietary China-made nuclear island automation and control systems. The permit was granted by the National Nuclear Safety Administration of China (NNSA) on March 26, 2010, which signifies that in the near-term future, China will achieve 100% localization of automation and control for nuclear stations, and will place Hollysys and its JV with proprietary technologies at the dominant leading position in China's fast growing nuclear industry."

Q3 Fiscal Year 2010 Unaudited Financial Results Summary

To facilitate a clear understanding of Hollysys' operational results, a summary of unaudited non-GAAP financial results is included below.

In USD thousands, except share numbers and EPS

Three Months ended %

Mar 31, 2010 Mar 31, 2009 Change

Revenues $33,362 22,899 45.7%

Integrated Contract

Revenue $31,262 21,329 46.6%

Products Sales $2,100 1,570 33.7%

Cost of Revenues $20,938 14,544 44.0%

Gross Profit $12,424 8,355 48.7%

Total Operating

Expenses $6,563 5,576 17.7%

Selling $2,740 2,279 20.2%

General and

Administrative $2,435 2,487 -2.1%

Research and

Development $2,963 2,128 39.3%

VAT refunds and

government subsidy $(1,575) (1,318) 19.5%

Income from Operations $5,861 2,779 110.9%

Others $(417) (473) -11.9%

Income Tax Expenses $190 3 6,493.4%

Non-GAAP Net income

attributable to non-

controlling interest $11 228 -95.3%

Non-GAAP Net Income

attributable to

Hollysys Automation

Technologies Ltd. $5,243 2,075 152.6%

Basic Non-GAAP EPS $0.10 0.05 128.8%

Diluted Non-GAAP EPS $0.10 0.05 125.7%

Stock-based

Compensation

Cost for Options $131 99 32.1%

Stock-based

Compensation

Cost for Incentive

Shares $-- -- --

Net income attributable

to Hollysys Automation

Technologies Ltd.(GAAP) $5,112 1,976 158.7%

Basic GAAP EPS $0.10 0.04 134.3%

Diluted GAAP EPS $0.10 0.04 131.2%

Basic Weighted Average

Common Shares

Outstanding 50,727,316 45,942,614 10.4%

Diluted Weighted

Average Common

Shares Outstanding 51,460,003 45,987,015 11.9%

Nine Months ended %

Mar 31, 2010 Mar 31, 2009 Change

Revenues $117,718 112,730 4.4%

Integrated Contract

Revenue $111,102 107,512 3.3%

Products Sales $6,616 5,218 26.8%

Cost of Revenues $76,691 73,145 4.8%

Gross Profit $41,027 39,585 3.6%

Total Operating

Expenses $17,793 14,177 25.5%

Selling $9,039 7,695 17.5%

General and

Administrative $8,876 6,670 33.1%

Research and

Development $9,212 5,237 75.9%

VAT refunds and

government subsidy $(9,334) (5,425) 72.1%

Income from Operations $23,234 25,408 -8.6%

Others $-367 190 -293.8%

Income Tax Expenses $1,112 2,220 -49.9%

Non-GAAP Net income

attributable to non-

controlling interest $1,805 4,012 -55.0%

Non-GAAP Net Income

attributable to

Hollysys Automation

Technologies Ltd. $19,950 19,366 3.0%

Basic Non-GAAP EPS $0.40 0.43 -8.5%

Diluted Non-GAAP EPS $0.39 0.43 -9.5%

Stock-based

Compensation

Cost for Options $393 188 109.1%

Stock-based

Compensation

Cost for Incentive

Shares $-- 17,000 -100.0%

Net income attributable

to Hollysys Automation

Technologies Ltd.(GAAP) $19,557 2,178 798.1%

Basic GAAP EPS $0.39 0.05 698.0%

Diluted GAAP EPS $0.39 0.05 688.9%

Basic Weighted Average

Common Shares

Outstanding 50,200,363 44,606,848 12.5%

Diluted Weighted

Average Common

Shares Outstanding 50,793,407 44,621,648 13.8%

For the three months ended March 31, 2010, total revenues amounted to $33.4 million, increased by $10.5 million, or 45.7%, compared to $22.9 million year over year. Of the total revenues, revenue from integrated contracts amounted to $31.3 million, and that of each segment was as follows:

-- $16.4 million, or 52.5%, related to Industrial Automation & Control;

-- Rail and subway was $14.0 million, or 44.7%, of which $6.0 million, or

19.0%, was from Rail Signaling and Control projects, and $8.0 million,

or 25.7%, was from Subway System Integration projects; and

-- $0.9 million, or 2.8%, related to Nuclear Plant Control projects and

miscellaneous.

As a percentage of total revenues, overall gross margin was 37.2% for the three months ended March 31, 2010, as compared to 36.5% for the same period of last year, mainly due to the gross margin for product sales increased from 76.4% for three months ended March 31, 2009, to 88.4% for this March quarter. The gross margin for integrated contracts was 33.8% for the three months ended March 31, 2010, compared to 33.5% for the same period of the prior year.

For the three months ended March 31, 2010, selling expenses were $2.7 million, compared to $2.3 million year over year. The increase in selling expenses was mainly due to the Company's increased marketing activities. As a percentage to total revenues, selling expenses accounted for 8.2% and 10.0% for quarter ended March 31, 2010 and 2009, respectively.

General and administrative expenses, excluding non-cash share compensation expenses, were $2.4 million, or 7.3% to total revenues, for the quarter ended March 31, compared to $2.5 million, or 10.9% to total revenues, for the same period of the prior year.

Research and development expenses were $3.0 million for the three months ended March 31, 2010, a 39.3% increase as compared to $2.1 million for the same period of the prior year. The increase was mainly due to increased R&D activities. As a percentage to total revenues, R&D expenses were 8.9% and 9.3% for quarter ended March 31, 2010 and 2009, respectively.

For the three months ended March 31, 2010, non-GAAP net income attributable to Hollysys excluding non-cash share compensation expense was $5.2 million, or $0.10 per diluted share based on approximately 51.5 million shares outstanding, as compared to $2.1 million, or $0.05 per share based on approximately 46 million shares outstanding, reported in the prior year period. On a GAAP basis, net income attributable to Hollysys was $5.1 million, or $0.10 per diluted share based on approximately 51.5 million shares outstanding, compared to $2.0 million, or $0.04 per diluted share based on 46 million shares outstanding, for the same period of the prior year.

Backlog Highlights

Hollysys' backlog as of March 31, 2010 was $242.3 million, compared to $219.6 million at December 31, 2009. The detailed breakdown for the backlog by segment is as followings:

-- $115.0 million related to subway business , or 47.4% of the total

backlog;

-- $62.7 million related to industrial automation, or 25.9% of the total

backlog;

-- $53.8 million related to high-speed rail, or 22.2% of the total backlog;

-- $10.8 million related to Nuclear and other miscellaneous contracts, or

4.5% of the total backlog.

Cash Flow Highlights

Hollysys generated operating cash flow of $0.4 million for the three months ended March 31, 2010. Including investing and financing activities, the total net cash outflow for the three months ended March 31, 2010 was $19.0 million.

Balance Sheet Highlights

As of March 31, 2010, Hollysys' cash and cash equivalents were $119.9 million, compared to $138.9 million at December 31, 2009. Days Sales Outstanding ("DSO") for Q3 FY 2010 is 192 days, as compared to 250 days year over year. Inventory turnover is 94 days for the quarter ended March 31, 2010, compared to 136 days year over year.

Outlook for FY 2010

Dr. Wang concluded, "Due to the delay of a few subway projects because of external factors and unexpected delay of new project granting for high-speed rail, we are revising previously communicated revenue guidance of $185.9M to 192.2M, down to 173.3M to 181.1M, and non-GAAP net income guidance of $30.3M and $31.4M, down to $28.3M to $29.6M respectively."

Conference Call

Management will discuss the current status of the Company's operations during a conference call at 9:00 AM ET/9:00 PM Beijing time on Thursday, May 13, 2010. Interested parties may participate in the call by dialing the following numbers approximately 5 minutes before the call is scheduled to begin and asking to be connected to the Hollysys Automation Technologies conference call. The conference call identification number is 71691830.

1-866-519-4004 (USA)

800-819-0121 (China Landline)

400-620-8038 (China Mobile)

+65-67239381 (International)

In addition, a recording of the conference call will be accessible within 24 hours via Hollysys' website at:

http://www.hollysys.com.sg/home/pubdown/130510.zip

About Hollysys Automation Technologies, Ltd.

Hollysys Automation Technologies is a leading provider of automation and control technologies and applications in China that enables its diversified industry and utility customers to improve operating safety, reliability, and efficiency. Founded in 1993, Hollysys has approximately 2,100 employees with 9 sales centers and 13 service centers in 21 cities in China and serves over 1700 customers in the industrial, railway, subway & nuclear industries. Its proprietary technologies are applied in product lines including Distributed Control System (DCS) and Programmable Logic Controller (PLC), high-speed railway Train Control Center (TCC) and Automatic Train Protection (ATP), subway supervisory and control platform (SCADA), and nuclear conventional island automation and control products. Hollysys is the largest SCADA systems supplier to China's subway automation market, and is the only certified domestic automation control systems provider to the nuclear industry in China. Hollysys is also one of only five automation control systems and products providers approved by China's Ministry of Railways in the 200km to 250km high-speed rail segment, and is one of only two automation control systems and products providers approved in the 300km to 350km high-speed rail segment.

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 Nine months ended

March 31, March 31,

2010 2009 2010 2009

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues

Integrated

contract

revenue $31,261,552 $21,328,566 $111,101,929 $107,511,907

Products sales 2,100,144 1,570,426 6,616,482 5,217,848

Total

revenues 33,361,696 22,898,992 117,718,411 112,729,755

Cost of

integrated

contracts 20,694,888 14,173,795 74,639,421 71,357,962

Cost of

products sold 243,227 370,402 2,052,009 1,786,610

Gross profit 12,423,581 8,354,795 41,026,981 39,585,183

Operating

expenses

Selling 2,739,835 2,278,944 9,038,955 7,695,185

General and

administrative 2,566,057 2,586,052 9,269,398 23,858,389

Research and

development 2,963,496 2,127,975 9,212,101 5,236,663

VAT refunds

and government

subsidy (1,574,613) (1,317,504) (9,334,483) (5,425,421)

Total

operating

expenses 6,694,775 5,675,467 18,185,971 31,364,816

Income from

operations 5,728,806 2,679,328 22,841,010 8,220,367

Other income

(expenses),

net (108,918) (89,013) (64,117) 783,560

Share of net

gains (losses)

of equity

investees 44,318 (252,907) 644,292 132,548

Interest

expense, net (352,039) (130,833) (947,571) (726,491)

Income before

income taxes 5,312,167 2,206,575 22,473,614 8,409,984

Income taxes

expenses 189,778 2,878 1,111,584 2,219,865

Net income 5,122,389 2,203,697 21,362,030 6,190,119

Less: Net

income

attributable

to non-

controlling

interest 10,636 227,514 1,804,930 4,012,393

Net income

attributable

to Hollysys

Automation

Technologies

Ltd. $5,111,753 $1,976,183 $19,557,100 $2,177,726

Weighted

average number

of common

shares 50,727,316 45,942,614 50,200,363 44,606,848

Weighted

average number

of diluted

common shares 51,460,003 45,987,015 50,793,407 44,621,648

Basic earnings

per share

attributable

to Hollysys

Automation

Technologies

Ltd. 0.10 0.04 0.39 0.05

Diluted

earnings per

share

attributable

to Hollysys

Automation

Technologies

Ltd. 0.10 0.04 0.39 0.05

Other

comprehensive

income

Net income 5,122,389 2,203,697 21,362,030 6,190,119

Translation

adjustments 31,923 (365,048) 149,811 486,254

Comprehensive

income 5,154,312 1,838,649 21,511,841 6,676,373

Less:

Comprehensive

income

attributable

to non-

controlling

interest 12,355 187,394 1,825,598 4,067,577

Comprehensive

income

attributable

to Hollysys

Automation

Technologies

Ltd. $5,141,957 $1,651,255 $19,686,243 $2,608,796

HOLLYSYS AUTOMATION TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

(In US Dollars)

March 31, December 31,

2010 2009

(Unaudited) (Unaudited)

ASSETS

Current Assets

Cash and cash equivalents $119,930,627 $138,934,585

Contract commitment deposit

in banks 4,237,057 3,623,312

Accounts receivable, net of

allowance for doubtful

accounts of $7,321,655 and

$7,470,817 64,902,638 62,471,833

Cost and estimated earnings

in excess of billings, net

of allowance for doubtful

accounts of $688,158 and

$908,735 44,234,355 42,257,121

Other receivables, net of

allowance for doubtful

accounts of $182,000 and

$183,175 4,551,142 4,173,793

Advances to suppliers 13,185,758 5,435,659

Amount due from related

parties 10,536,598 9,918,280

Inventories, net of provision

of $1,444,708 and $1,187,717 21,267,445 19,704,487

Prepaid expenses 1,124,323 994,471

Income tax recoverable 1,004,314 --

Deferred tax assets 1,667,283 1,282,775

Deposit for acquisition of

equity interest from

non-controlling interest 6,206,237 --

Total current assets 292,847,777 288,796,316

Property, plant and equipment,

net 47,969,800 48,640,944

Long term investments 14,169,174 13,751,983

Goodwill 285,124 284,936

Deferred tax assets 688,119 767,822

Total assets 355,959,994 352,242,001

LIABILITIES AND STOCKHOLDERS'

EQUITY

Current liabilities

Short-term bank loans 1,464,922 1,464,493

Current portion of long-term

loans 732,461 --

Bonds payable 11,719,379 11,715,947

Accounts payable 35,120,711 34,789,135

Deferred revenue 37,227,125 26,507,895

Accrued payroll and related

expense 3,623,791 5,195,086

Income tax payable 1,449,243 822,727

Warranty liabilities 2,075,347 2,000,454

Other tax payables 8,115,604 7,283,233

Accrued liabilities 7,764,485 7,482,159

Amounts due to related

parties 2,560,252 2,901,648

Deferred tax liabilities 79,654 231,686

Construction cost payable 2,749,923 5,221,674

Total current liabilities 114,682,897 105,616,137

Long-term bank loans 35,890,600 36,612,334

Long-term bonds payable -- --

Total liabilities 150,573,497 142,228,471

Commitments and contingencies -- --

HOLLYSYS AUTOMATION TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

(In US Dollars)

March 31, December 31,

2010 2009

(Unaudited) (Unaudited)

Stockholder's equity

Common stock, par value $0.001 per share,

100,000,000 shares authorized, 54,356,562

and 49,942,614 shares issued and

outstanding 54,357 49,943

Additional paid-in capital 140,909,078 130,393,281

Appropriated earnings 15,135,442 15,135,442

Retained earnings 32,789,354 27,677,602

Accumulated comprehensive income -

translation adjustments 16,491,722 14,000,994

Total Hollysys Automation Technologies Ltd.

stockholder's equity 205,379,953 187,257,262

Non-controlling interest 6,544 22,756,268

Total equity 205,386,497 210,013,530

Total liabilities and equity $355,959,994 $352,242,001

HOLLYSYS AUTOMATION TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In US Dollars)

Three months Nine months

ended ended

March 31, March 31,

2010 2010

(Unaudited) (Unaudited)

Cash flows from operating activities:

Net income $5,122,389 $21,362,030

Adjustments to reconcile net income to net

cash provided by (used in) operating

activities:

Depreciation and amortization 798,185 2,385,209

Allowance (reversal) for doubtful accounts (409,971) 1,001,498

Provision for inventories 256,991 330,568

Loss on disposal of property, plant and

equipment 4,363 203,021

Share of net gains from equity investees (44,318) (644,292)

Amortization of expenses accrued for bond

payable 15,307 45,910

Stock-based compensation 131,019 393,057

Deferred tax liabilities (456,837) (1,526,405)

Changes in operating assets and liabilities:

Accounts receivable (2,215,964) (9,408,114)

Cost and estimated earnings in excess of

billings (1,754,933) 6,916,260

Inventories (1,819,949) (2,760,642)

Advance to suppliers (7,540,340) (5,108,143)

Other receivables (407,237) (409,096)

Deposits and other assets (1,763,202) 553,526

Due from related parties (991,332) (2,984,216)

Accounts payable 691,246 (3,138,243)

Deferred revenue 10,719,230 16,154,585

Accruals and other payable (1,067,777) 4,888,766

Due to related parties (341,396) 1,095,569

Tax payable 1,458,887 (985,056)

Net cash provided by operating activities 384,361 28,365,792

Cash flows from investing activities:

Purchase of property, plant and equipment (3,159,261) (10,976,927)

Proceeds from disposing property, plant and

equipment 4,942 8,976

Advance to related parties 4,699 649,937

Acquisition of long term investments -- (1,000,454)

Dividends from equity investees -- 58,575

Acquisition of a subsidiary, net of cash

acquired (146,483) (131,181)

Acquisition of equity interest from non-

controlling interest (9,910,265) (10,348,540)

Deposit for acquisition of equity interest

from non-controlling interest (6,203,874) (6,203,874)

Net cash used in investing activities (19,410,242) (27,943,488)

Cash flows from financing activities:

Repayments of short-term loans -- (4,393,094)

Repayments of long-term bank loans -- (5,125,276)

Net cash used in financing activities -- (9,518,370)

Effect of foreign exchange rate changes 21,923 144,027

Net decrease in cash and cash equivalents $(19,003,958) $(8,952,039)

Cash and cash equivalents, beginning of

period $138,934,585 $128,882,666

Cash and cash equivalents, end of period 119,930,627 119,930,627

Reconcile GAAP Net Income 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 Nine months ended

March 31, March 31,

2010 2009 2010 2009

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Net income attributable

to Hollysys Automation

Technologies Ltd. $5,111,753 $1,976,183 $19,557,100 $2,177,726

Adjustments:

Stock-based

compensation cost

for options 131,019 99,219 393,057 188,007

Stock-based

compensation cost

for incentive shares -- -- -- 17,000,000

Non-Gaap Net Income

attributable to

Hollysys Automation

Technologies Ltd. $5,242,772 $2,075,402 $19,950,157 $19,365,733

本文源自: 环亚娱乐