Company Contacts:
Camelot Information Systems Inc.
Mr. Franklin King, Interim Chief Financial Officer
Tel: +86 (10) 8201 9008
E-mail: investors@camelotchina.com
Ms. Jojo Guo, Investor Relations Manager
Tel: +1 (646) 371-6533
E-mail: investors@camelotchina.com
|
Investor Relations Contacts:
CCG Investor Relations
Mr. Crocker Coulson, President
Tel: +1 (646) 213-1915
E-mail: crocker.coulson@ccgir.com
Mr. John Harmon, CFA, Sr. Acct. Mgr.
Tel: +86 (10) 8573 1014 (Beijing)
E-mail: john.harmon@ccgir.com
|
●
|
Net revenues decreased slightly year-over-year to $59.7 million in the fourth quarter of 2011, as compared to $60.0 million in the fourth quarter of 2010
|
|
●
|
Adjusted operating loss1 was $934,000, as compared to adjusted operating income of $12.8 million in the year-ago quarter
|
|
●
|
U.S. GAAP operating loss was $3.2 million, compared to U.S. GAAP operating income of $8.9 million in the year-ago quarter
|
|
●
|
Adjusted net income1 attributable to Camelot was $2.7 million as compared to adjusted net income attributable to Camelot of $11.2 million in the year-ago quarter. Adjusted diluted earnings per ADS2 in the fourth quarter of 2011 were $0.06, as compared to diluted earnings per ADS of $0.24 in the year-ago quarter
|
|
●
|
U.S. GAAP net income attributable to Camelot was $0.5 million, compared to U.S. GAAP net income attributable to Camelot of $7.3 million in the year-ago quarter
|
●
|
Net revenues increased 17.8% to $227.1 million in 2011, as compared to $192.9 million in 2010
|
1
|
For more information about the adjusted (i.e. non-GAAP) financial measures contained in this press release, please see “Use of Non-GAAP Financial Measures” below.
|
2
|
One American Depositary Share (“ADS”) is equivalent to four ordinary shares.
|
●
|
Adjusted operating income1 was $13.1 million, as compared to adjusted operating income of $35.7 million in 2010
|
|
●
|
U.S. GAAP operating loss was $43.1 million, compared to U.S. GAAP operating income of $22.8 million in 2010
|
|
●
|
Adjusted net income1 attributable to Camelot was $15.3 million as compared to adjusted net income attributable to Camelot of $31.5 million in 2010. Adjusted diluted earnings per ADS1 in 2011 were $0.34, as compared to diluted earnings per ADS of $0.76 in 2010
|
|
●
|
U.S. GAAP net loss attributable to Camelot was $40.8 million, compared to U.S. GAAP net income attributable to Camelot of $18.6 million in 2010
|
|
●
|
According to a report by International Data Corp. (IDC), Camelot was again ranked number-one in 2011 as the largest local SAP services provider in China, with 14.4% market share (versus 12.0% in 2010)
|
|
●
|
According to a report by IDC, Camelot was again ranked as number-one in 2011 in the banking testing service market, with 19.05% market share
|
3
|
Calculated by dividing average accounts receivable, net of deferred revenue, by rolling gross revenues before business tax and related surcharges, and multiplying by 360 days. Rolling gross revenues is for the 12 months ended December 31, 2011.
|
US Toll free:
|
866.510.9661
|
|
US Toll / International:
|
617.614.3452
|
|
Hong Kong toll free:
|
800.96.3844
|
|
HK Toll:
|
852.3002.1672
|
|
UK toll free:
|
08082347616
|
|
UK toll:
|
44.207.365.8426
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South China toll free / China Telecom:
|
10 800 130 1713
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|
North China toll free / China Netcom:
|
10 800 713 1756
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|
China toll:
|
86 4008811630
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|
Taiwan toll free:
|
00801148420
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US Toll free:
|
888-286-8010
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US Toll / International:
|
617-801-6888
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December 31,
2011
|
December 31,
2010
|
||||||||
Assets
|
|||||||||
Current assets
|
|||||||||
Cash and cash equivalents
|
$ | 57,128 | $ | 140,356 | |||||
Term deposits
|
45,318 | 160 | |||||||
Restricted cash
|
4,626 | 6,932 | |||||||
Billed accounts receivable
|
47,834 | 43,072 | |||||||
Unbilled accounts receivable
|
87,212 | 62,624 | |||||||
Other current assets
|
19,456 | 14,073 | |||||||
Total current assets
|
261,574 | 267,217 | |||||||
Property and equipment, net
|
4,673 | 4,680 | |||||||
Goodwill and other intangible assets
|
46,248 | 67,860 | |||||||
Other long-term assets
|
2,542 | 1,708 | |||||||
Total assets
|
315,037 | 341,465 | |||||||
Liabilities and shareholders' equity
|
|||||||||
Current liabilities
|
|||||||||
Consideration payable in connection with business acquisition and debt extinguishment
|
5,132 | 15,594 | |||||||
Other current liabilities
|
70,740 | 64,442 | |||||||
Total current liabilities
|
75,872 | 80,036 | |||||||
Contingent consideration in relation to acquisition
|
2,822 | 2,307 | |||||||
Other non-current liabilities
|
4,255 | 5,845 | |||||||
Total liabilities
|
82,949 | 88,188 | |||||||
Shareholders' equity (a)
|
232,088 | 253,277 | |||||||
Total liabilities and shareholders' equity
|
315,037 | 341,465 |
Three Months Ended Dec. 31,
|
Twelve Months Ended Dec. 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net revenues
|
$ | 59,690 | $ | 60,011 | $ | 227,120 | $ | 192,863 | ||||||||
Cost of revenues(1)(2)
|
(43,787 | ) | (39,688 | ) | (167,520 | ) | (130,862 | ) | ||||||||
Gross profit
|
15,903 | 20,323 | 59,600 | 62,001 | ||||||||||||
Selling and marketing(1)(2)
|
(4,319 | ) | (2,790 | ) | (20,263 | ) | (11,138 | ) | ||||||||
General and administrative(1)(2)
|
(12,180 | ) | (5,843 | ) | (45,033 | ) | (21,605 | ) | ||||||||
Research and development costs
|
(2,348 | ) | (1,154 | ) | (5,956 | ) | (2,741 | ) | ||||||||
Changes in fair value of contingent consideration for acquisition
|
(442 | ) | (1,772 | ) | (1,669 | ) | (3,880 | ) | ||||||||
Impairment of intangible assets
|
— | — | (8,552 | ) | — | |||||||||||
Impairment of goodwill
|
— | — | (21,457 | ) | — | |||||||||||
Total operating expense
|
(19,289 | ) | (11,559 | ) | (102,930 | ) | (39,364 | ) | ||||||||
Government subsidies
|
189 | 123 | 255 | 123 | ||||||||||||
Income (Loss) from operations
|
(3,197 | ) | 8,887 | (43,075 | ) | 22,760 | ||||||||||
Interest expense
|
(189 | ) | (142 | ) | (935 | ) | (475 | ) | ||||||||
Interest income
|
476 | 248 | 1,194 | 498 | ||||||||||||
Income (Loss) before provisions for income tax
|
(2,910 | ) | 8,993 | (42,816 | ) | 22,783 | ||||||||||
Income tax expense(benefit)
|
3,283 | (1,645 | ) | 1,791 | (4,100 | ) | ||||||||||
Net Income (loss)
|
373 | 7,348 | (41,025 | ) | 18,683 | |||||||||||
Noncontrolling interest
|
88 | (67 | ) | 201 | (86 | ) | ||||||||||
Net Income (loss) attributable to Camelot Information Systems Inc.(3)
|
$ | 461 | $ | 7,281 | (40,824 | ) | 18,597 | |||||||||
Earnings (loss) per share
|
||||||||||||||||
Basic-ordinary shares
|
$ | 0.00 | $ | 0.04 | $ | (0.23 | ) | $ | 0.12 | |||||||
Diluted-ordinary shares
|
$ | 0.00 | $ | 0.04 | $ | (0.23 | ) | $ | 0.11 | |||||||
Earnings (loss) per ADS
|
||||||||||||||||
Basic-ADSs
|
$ | 0.01 | $ | 0.17 | $ | (0.91 | ) | $ | 0.48 | |||||||
Diluted-ADSs
|
$ | 0.01 | $ | 0.15 | $ | (0.91 | ) | $ | 0.45 | |||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic-ordinary shares
|
177,212,430 | 176,294,644 | 179,954,056 | 128,663,415 | ||||||||||||
Diluted-ordinary shares
|
185,938,452 | 189,929,087 | 179,954,056 | 165,258,030 | ||||||||||||
Weighted average ADSs outstanding
|
||||||||||||||||
Basic-ADSs
|
44,303,108 | 44,073,661 | 44,998,514 | 32,165,854 | ||||||||||||
Diluted-ADSs
|
46,484,613 | 47,482,272 | 44,998,514 | 41,314,508 |
(1)
|
Includes the following amounts of share-based compensation expenses for the periods indicated
|
Three Months Ended Dec. 31,
|
Twelve Months Ended Dec. 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Cost of revenues
|
$ | 28 | $ | 28 | $ | 1,463 | $ | 136 | ||||||||
Selling and marketing
|
825 | 156 | 7,427 | 354 | ||||||||||||
General and administrative
|
159 | 532 | 10,476 | 2,434 | ||||||||||||
Total share-based compensation expenses
|
$ | 1,012 | $ | 716 | $ | 19,366 | $ | 2,924 |
(2)
|
Includes the following amounts of amortization expense related to intangible assets acquired for business combination for the periods indicated
|
Three Months Ended Dec. 31,
|
Twelve Months Ended Dec. 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Cost of revenues
|
$ | 211 | $ | 370 | $ | 1,594 | $ | 1,776 | ||||||||
Selling and marketing
|
527 | 1,034 | 3,213 | 4,332 | ||||||||||||
General and administrative
|
71 | — | 278 | — | ||||||||||||
Total acquisition-related intangible amortization expenses
|
$ | 809 | $ | 1,404 | $ | 5,085 | $ | 6,108 |
(3)
|
The following table sets forth the reconciliation of our adjusted net income attributable to Camelot Information Systems Inc. to the U.S. GAAP net income attributable to Camelot Information Systems Inc.
|
Three Months Ended Dec. 31,
|
Twelve Months Ended Dec. 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net income(Loss) attributable to Camelot Information Systems Inc. (U.S. GAAP)
|
$ | 461 | $ | 7,281 | $ | (40,824 | ) | $ | 18,597 | |||||||
Share-based compensation
|
1,012 | 716 | 19,366 | 2,924 | ||||||||||||
Acquisition-related intangible amortization
|
809 | 1,404 | 5,085 | 6,108 | ||||||||||||
Changes in fair value of contingent consideration
|
442 | 1,772 | 1,669 | 3,880 | ||||||||||||
Impairment of intangible assets
|
— | — | 8,552 | — | ||||||||||||
Impairment of goodwill
|
— | — | 21,457 | — | ||||||||||||
Total adjusted amounts
|
2,263 | 3,892 | 56,129 | 12,912 | ||||||||||||
Adjusted net income (loss)attributable to Camelot Information Systems Inc.
|
$ | 2,724 | $ | 11,173 | $ | 15,305 | $ | 31,509 |
Three Months
Ended Dec. 31,
|
Twelve Months
Ended Dec. 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income (loss)
|
$ | 373 | $ | 7,348 | $ | (41,025 | ) | $ | 18,683 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||||||||||
Depreciation of property and equipment
|
269 | 291 | 1,087 | 962 | ||||||||||||
Amortization of intangible assets
|
863 | 1,448 | 5,285 | 6,309 | ||||||||||||
Deferred income taxes
|
(1,669 | ) | (1,015 | ) | (3,795 | ) | (1,324 | ) | ||||||||
Impairment of intangible assets
|
— | — | 8,552 | — | ||||||||||||
Impairment of goodwill
|
— | — | 21,457 | — | ||||||||||||
Provision for account receivable
|
529 | (3 | ) | 3,246 | 15 | |||||||||||
Share-based compensation
|
1,012 | 716 | 19,366 | 2,924 | ||||||||||||
Gains on disposal of property and equipment
|
11 | — | 20 | (1 | ) | |||||||||||
Change in fair value of contingent consideration for acquisition
|
442 | 1,772 | 1,669 | 3,880 | ||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Accounts receivable
|
9,743 | (2,954 | ) | (22,493 | ) | (33,937 | ) | |||||||||
Other assets
|
(4,229 | ) | (3,028 | ) | (4,509 | ) | (4,475 | ) | ||||||||
Accounts payable
|
731 | 3,742 | (1,353 | ) | 7,500 | |||||||||||
Other liabilities
|
5,509 | 4,716 | 7,636 | 9,359 | ||||||||||||
Net cash used in operating activities
|
13,584 | 13,033 | (4,857 | ) | 9,895 | |||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Term deposits
|
(10,342 | ) | (4 | ) | (44,785 | ) | 139 | |||||||||
Restricted cash
|
8,003 | (4,797 | ) | 2,743 | (4,365 | ) | ||||||||||
Repayment of loan to unrelated parties
|
13 | 303 | 13 | 248 | ||||||||||||
Proceeds from disposal of property and equipment
|
11 | 855 | 29 | 29 | ||||||||||||
Purchase of property and equipment
|
(125 | ) | (1,437 | ) | (789 | ) | (1,439 | ) | ||||||||
Purchase of intangible assets
|
— | 63 | (78 | ) | — | |||||||||||
Purchase of businesses, net of cash acquired
|
— | — | (11,430 | ) | (8,359 | ) | ||||||||||
Net cash provided by (used in) investing activities
|
(2,440 | ) | (5,017 | ) | (54,297 | ) | (13,747 | ) | ||||||||
Cash flows from financing activities:
|
||||||||||||||||
Proceeds from bank borrowing
|
1,031 | 9,794 | 8,863 | 11,691 | ||||||||||||
Repayment of bank borrowing
|
(8,472 | ) | (4,377 | ) | (12,230 | ) | (9,311 | ) | ||||||||
Repurchase of ordinary shares
|
— | — | (14,415 | ) | — | |||||||||||
Proceeds from initial public offering
|
— | 973 | — | 93,775 | ||||||||||||
Payment of issuance cost related to initial public offering
|
— | (2,957 | ) | (964 | ) | (2,957 | ) |
Proceeds from follow-on offering, net of issuance cost
|
— | 19,949 | — | 19,949 | ||||||||||||
Payment of reimbursed issuance cost related to follow-on offering
|
(73 | ) | (141 | ) | (464 | ) | (141 | ) | ||||||||
Reimbursement of issuance cost related to follow-on offering
|
— | — | 666 | — | ||||||||||||
Payment of contingent consideration and deferred consideration for business acquisitions
|
(1,188 | ) | (3 | ) | (7,961 | ) | (4,252 | ) | ||||||||
Proceeds from stock option exercises
|
101 | — | 1,395 | — | ||||||||||||
Net cash provided by (used in) financing activities
|
(8,601 | ) | 23,238 | (25,110 | ) | 108,754 | ||||||||||
Effect of foreign exchange rate changes
|
298 | 110 | 1,036 | 1,634 | ||||||||||||
Net increase (decrease) in cash and cash equivalents
|
2,841 | 31,364 | (83,228 | ) | 106,536 | |||||||||||
Cash and cash equivalents, beginning of period
|
54,287 | 108,992 | 140,356 | 33,820 | ||||||||||||
Cash and cash equivalents, end of period
|
$ | 57,128 | $ | 140,356 | $ | 57,128 | $ | 140,356 |
Three Months Ended December 31, 2011
|
Three Months Ended December 31, 2010
|
|||||||||||||||||||||||||
GAAP
|
Adjustments
|
Adjusted
|
GAAP
|
Adjustments
|
Adjusted
|
|||||||||||||||||||||
Cost of revenues
|
$ | 43,787 | $ | (239 | ) |
(a)
|
$ | 43,548 | $ | 39,688 | $ | (398 | ) |
(a)
|
$ | 39,290 | ||||||||||
Gross profit
|
15,903 | 239 |
(a)
|
16,142 | 20,323 | 398 |
(a)
|
20,721 | ||||||||||||||||||
Operating expenses
|
19,289 | (2,024 | ) |
(a)
|
17,265 | 11,559 | (3,494 | ) |
(a)
|
8,065 | ||||||||||||||||
Operating income (loss)
|
(3,197 | ) | 2,263 |
(a)
|
(934 | ) | 8,887 | 3,892 |
(a)
|
12,779 | ||||||||||||||||
Net income (loss)
|
461 | 2,263 |
(a)(d)
|
2,724 | 7,281 | 3,892 |
(a)
|
11,173 | ||||||||||||||||||
Net gross margin
|
26.6 | % | 0.4 | % |
(b)
|
27.0 | % | 33.9 | % | 0.6 | % |
(b)
|
34.5 | % | ||||||||||||
Net operating margin
|
(5.4 | %) | 3.8 | % |
(a)
|
(1.6 | %) | 14.8 | % | 6.5 | % |
(a)
|
21.3 | % | ||||||||||||
Net margin
|
0.8 | % | 3.8 | % |
(a)
|
4.6 | % | 12.1 | % | 6.5 | % |
(a)
|
18.6 | % | ||||||||||||
Diluted EPS
|
$ | 0.00 | $ | 0.01 |
(c)
|
$ | 0.01 | $ | 0.04 | $ | 0.02 |
(c)
|
$ | 0.06 | ||||||||||||
Twelve Months Ended December 31, 2011
|
Twelve Months Ended December 31, 2010
|
|||||||||||||||||||||||||
GAAP
|
Adjustments
|
Adjusted
|
GAAP
|
Adjustments
|
Adjusted
|
|||||||||||||||||||||
Cost of revenues
|
$ | 167,520 | $ | (3,057 | ) |
(a)
|
$ | 164,463 | $ | 130,862 | $ | (1,912 | ) |
(a)
|
$ | 128,950 | ||||||||||
Gross profit
|
59,600 | 3,057 |
(a)
|
62,957 | 62,001 | 1,912 |
(a)
|
63,913 | ||||||||||||||||||
Operating expenses
|
102,930 | (53,073 | ) |
(a)
|
49,857 | 39,364 | (11,000 | ) |
(a)
|
28,364 | ||||||||||||||||
Operating income (loss)
|
(43,075 | ) | 56,129 |
(a)
|
13,054 | 22,760 | 12,912 |
(a)
|
35,672 | |||||||||||||||||
Net income (loss)
|
(40,824 | ) | 56,129 |
(a)(d)
|
15,305 | 18,597 | 12,912 |
(d)
|
31,509 | |||||||||||||||||
Net gross margin
|
26.2 | % | 1.4 | % |
(b)
|
27.6 | % | 32.1 | % | 1.0 | % |
(b)
|
33.1 | % | ||||||||||||
Net operating margin
|
(19.0 | %) | 24.7 | % |
(a)
|
5.7 | % | 11.8 | % | 6.7 | % |
(a)
|
18.5 | % | ||||||||||||
Net margin
|
(18.0 | %) | 24.7 | % |
(a)
|
6.7 | % | 9.6 | % | 6.7 | % |
(a)
|
16.3 | % | ||||||||||||
Diluted EPS
|
$ | (0.23 | ) | $ | 0.42 |
(c)
|
$ | 0.09 | $ | 0.11 | $ | 0.08 |
(c)
|
$ | 0.19 | |||||||||||
(a)
|
The non-GAAP adjustments include share-based compensation expenses and amortization expense related to intangible assets acquired for business acquisition, where were presented in the notes (1) and (2) below Condensed Consolidated Statements of Operations (Unaudited) for the reconciliation process.
|
(b)
|
Adjustment to exclude acquisition-related intangible assets amortization expense and share-based compensation recorded in cost of revenues, $239, $398, $3,057 and $1,912 for the three-month periods ended December 31, 2011 and 2010, and the twelve-month periods ended December 31, 2011 and 2010, respectively. In addition, adjustments for twelve-month periods ended December 31, 2011 exclude impairment of goodwill and intangible assets, amounting to $21,457 and $8,552, respectively.
|
(c)
|
Adjusted diluted EPS is computed by dividing adjusted net income attributable to Camelot Information Systems Inc. by the weighted average number of diluted ordinary shares outstanding used in computing the GAAP diluted EPS for the respective periods.
|
(d)
|
Net income refers to net income attributable to Camelot.
|
Camelot Information Systems Inc.
|
|||
By:
|
/s/ Yiming MA
|
||
Name:
|
Yiming MA
|
||
Title:
|
Chief Executive Officer
|