Form 20-F ü
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Form 40-F _____
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Yes ____
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No ü
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1.
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a press release announcing unaudited 2012 second-quarter financial results of Camelot Information Systems Inc. (the “Registrant”), made by the Registrant on August 20, 2012;
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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
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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
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·
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Net revenues were $62.1 million in the second quarter of 2012, an increase of 4.5% from $59.4 million in the second quarter of 2011 and an increase of 8.7% from the first quarter
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EAS revenues declined 1.9% year-over year due to lower sales in the resources and energy segment alongside an uncertain China macroeconomic environment
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FIS revenues increased 20.0% year-over-year due to higher customer activity and the restoration of delivery capabilities
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Gross profit was $16.2 million, as compared to $19.0 million in the year-ago quarter and as compared to $12.7 million in the first quarter
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·
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Adjusted operating income1 was $4.5 million, as compared to adjusted operating income of $8.8 million in the year-ago quarter and as compared to $0.6 million in the first quarter
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·
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Adjusted net income1 attributable to Camelot was $3.5 million, as compared to $8.0 million in the year-ago quarter and exceeding guidance of $3.2 million and as compared to $1.4 million in the first quarter
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·
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Announced a definitive agreement with Wuhan Iron and Steel Engineering Technologies
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1
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For more information about the adjusted (i.e. non-GAAP) financial measures contained in this press release, please see “Use of Non-GAAP Financial Measures” below.
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Group Co., Ltd., the technology subsidiary of Wuhan Iron and Steel Group, to create a joint venture named Wuhan Steel Camelot Information Systems Co. designed to create a platform upon which to develop and grow the IT application business for the iron and steel industry
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Business Line
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Three Months Ended
June 30, 2012
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Three Months Ended
June 30, 2011
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||||||||||||||
Enterprise application services
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$ | 41,213 | 66.4 | % | $ | 42,004 | 70.7 | % | ||||||||
Financial industry IT services
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20,873 | 33.6 | % | 17,398 | 29.3 | % | ||||||||||
Total net revenues
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62,086 | 100.0 | % | 59,402 | 100.0 | % |
2
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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 June 30, 2012.
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US Toll free:
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800.510.9661
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US Toll / International:
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617.614.3452
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Hong Kong toll free:
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800.96.3844
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HK Toll:
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852.3002.1672
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UK toll free:
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08082347616
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UK toll:
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44.207.365.8426
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South China toll free / China Telecom:
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10 800 130 1713
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North China toll free / China Netcom:
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10 800 713 1756
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China toll:
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86 4008811630
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Taiwan toll free:
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00801148420
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US Toll free:
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888-286-8010
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US Toll / International:
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617-801-6888
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June 30, 2012
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December 31, 2011
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Assets
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Current assets
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||||||||
Cash and cash equivalents
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$ | 34,155 | $ | 57,128 | ||||
Term deposits
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34,994 | 45,318 | ||||||
Restricted cash
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909 | 4,626 | ||||||
Billed accounts receivable
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46,534 | 47,834 | ||||||
Unbilled accounts receivable
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114,905 | 87,212 | ||||||
Other current assets
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19,737 | 19,659 | ||||||
Total current assets
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251,234 | 261,777 | ||||||
Property and equipment, net
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4,411 | 4,673 | ||||||
Goodwill and other intangible assets
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49,015 | 46,248 | ||||||
Other long-term assets
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2,417 | 2,698 | ||||||
Total assets
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307,077 | 315,396 | ||||||
Liabilities and shareholders' equity
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||||||||
Current liabilities
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||||||||
Consideration payable in connection with business acquisition
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– | 5,132 | ||||||
Contingent consideration in relation to business acquisition
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2,919 | – | ||||||
Other current liabilities
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64,357 | 71,099 | ||||||
Total current liabilities
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67,276 | 76,231 | ||||||
Contingent consideration in relation to business acquisition
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– | 2,822 | ||||||
Other non-current liabilities
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4,368 | 4,255 | ||||||
Total liabilities
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71,644 | 83,308 | ||||||
Equity (a)
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235,433 | 232,088 | ||||||
Total liabilities and equity
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307,077 | 315,396 |
Three Months Ended
June 30,
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Six Months Ended
June 30,
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2012
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2011
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2012
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2011
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Net revenues
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$ | 62,086 | $ | 59,402 | $ | 119,209 | $ | 112,968 | ||||||||
Cost of revenues(1)(2)
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(45,869 | ) | (40,429 | ) | (90,298 | ) | (80,071 | ) | ||||||||
Gross profit
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16,217 | 18,973 | 28,911 | 32,897 | ||||||||||||
Selling and marketing(1)(2)
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(3,493 | ) | (5,970 | ) | (8,102 | ) | (9,240 | ) | ||||||||
General and administrative(1)(2)
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(7,401 | ) | (7,715 | ) | (15,385 | ) | (14,135 | ) | ||||||||
Research and development costs
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(1,797 | ) | (1,301 | ) | (3,464 | ) | (2,147 | ) | ||||||||
Changes in fair value of contingent consideration for acquisition
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(50 | ) | (303 | ) | (97 | ) | (910 | ) | ||||||||
Total operating expense
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(12,741 | ) | (15,289 | ) | (27,048 | ) | (26,432 | ) | ||||||||
Government subsidies
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– | – | – | 4 | ||||||||||||
Income from operations
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3,476 | 3,684 | 1,863 | 6,469 | ||||||||||||
Interest expense
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(54 | ) | (259 | ) | (146 | ) | (495 | ) | ||||||||
Interest income
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210 | 222 | 559 | 461 | ||||||||||||
Income before provisions for income tax
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3,632 | 3,647 | 2,276 | 6,435 | ||||||||||||
Income tax expense
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(758 | ) | (756 | ) | (465 | ) | (1,256 | ) | ||||||||
Net income
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2,874 | 2,891 | 1,811 | 5,179 | ||||||||||||
Noncontrolling interest
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(460 | ) | (7 | ) | (235 | ) | 39 | |||||||||
Net income attributable to Camelot Information Systems Inc.(3)
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2,414 | 2,884 | 1,576 | 5,218 | ||||||||||||
Earnings per share:
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Basic-ordinary shares
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$ | 0.01 | $ | 0.02 | $ | 0.01 | $ | 0.03 | ||||||||
Diluted-ordinary shares
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$ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.03 | ||||||||
Earnings per ADS:
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Basic-ADSs
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$ | 0.05 | $ | 0.06 | $ | 0.04 | $ | 0.12 | ||||||||
Diluted-ADSs
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$ | 0.05 | $ | 0.06 | $ | 0.03 | $ | 0.11 | ||||||||
Weighted average shares outstanding:
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Basic-ordinary shares
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177,621,367 | 181,401,785 | 177,621,367 | 181,072,244 | ||||||||||||
Diluted-ordinary shares
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186,288,689 | 194,844,625 | 186,302,302 | 195,480,592 | ||||||||||||
Weighted average ADSs outstanding:
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Basic-ADSs
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44,405,342 | 45,350,446 | 44,405,342 | 45,268,061 | ||||||||||||
Diluted-ADSs
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46,572,172 | 48,702,656 | 46,575,575 | 48,841,867 | ||||||||||||
Net income
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2,874 | 2,891 | 1,811 | 5,179 | ||||||||||||
Other comprehensive income, net of tax:
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Change in cumulative foreign currency translation adjustments
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(1,717 | ) | 2,859 | (1,649 | ) | 3,822 | ||||||||||
Comprehensive income
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1,157 | 5,750 | 162 | 9,001 | ||||||||||||
Less: comprehensive income attributable to the noncontrolling interest
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(447 | ) | (16 | ) | (230 | ) | 34 | |||||||||
Comprehensive income attributable to Camelot Information Systems Inc.
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710 | 5,734 | (68 | ) | 9,035 |
Three Months
Ended June 30,
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Six Months
Ended June 30,
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2012
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2011
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2012
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2011
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Cost of revenues
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$ | 19 | $ | 28 | $ | 43 | $ | 56 | ||||||||
Selling and marketing
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430 | 2,984 | 1,517 | 3,140 | ||||||||||||
General and administrative
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39 | 339 | 537 | 808 | ||||||||||||
Total share-based compensation expenses
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488 | 3,351 | 2,097 | 4,004 |
Three Months Ended
June 30,
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Six Months Ended
June 30,
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2012
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2011
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2012
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2011
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Cost of revenues
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$ | 32 | $ | 461 | $ | 64 | $ | 916 | ||||||||
Selling and marketing
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417 | 904 | 898 | 1,877 | ||||||||||||
General and administrative
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71 | 69 | 142 | 137 | ||||||||||||
Total acquisition-related intangible amortization expenses
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520 | 1,434 | 1,104 | 2,930 |
Three Months
Ended June 30,
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Six Months
Ended June 30,
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2012
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2011
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2012
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2011
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Net income attributable to Camelot Information Systems Inc. (U.S. GAAP)
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$ | 2,414 | $ | 2,884 | $ | 1,576 | $ | 5,218 | ||||||||
Share-based compensation
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488 | 3,351 | 2,097 | 4,004 | ||||||||||||
Acquisition-related intangible amortization
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520 | 1,434 | 1,104 | 2,930 |
Changes in fair value of contingent consideration
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50 | 303 | 97 | 910 | ||||||||||||
Total adjusted amounts
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1,058 | 5,088 | 3,298 | 7,844 | ||||||||||||
Adjusted net income attributable to Camelot Information Systems Inc.
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3,472 | 7,972 | 4,874 | 13,062 |
Three-Month Periods Ended June 30,
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Six-Month Periods Ended June 30,
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2012
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2011
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2012
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2011
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Cash flow from operating activities:
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Net income
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$ | 2,874 | $ | 2,891 | $ | 1,811 | $ | 5,179 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities:
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Depreciation of property and equipment
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257 | 280 | 522 | 552 | ||||||||||||
Amortization of intangible assets
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818 | 1,481 | 1,508 | 3,026 | ||||||||||||
Provision for account receivable
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(362 | ) | – | (791 | ) | – | ||||||||||
Provision for other current assets
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633 | 1,231 | 633 | 1,231 | ||||||||||||
Share-based compensation
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488 | 3,351 | 2,097 | 4,004 | ||||||||||||
Gains on disposal of property and equipment
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(7 | ) | (2 | ) | 11 | 7 | ||||||||||
Change in fair value of contingent consideration for acquisition
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50 | 303 | 97 | 910 | ||||||||||||
Changes in operating assets and liabilities:
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Accounts receivable
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(19,409 | ) | (17,695 | ) | (27,072 | ) | (20,214 | ) | ||||||||
Deferred income taxes
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(112 | ) | (248 | ) | 370 | (408 | ) | |||||||||
Other assets
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193 | (545 | ) | (452 | ) | (2,694 | ) | |||||||||
Accounts payable
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4,430 | 2,137 | 1,744 | (229 | ) | |||||||||||
Other liabilities
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4,948 | 3,788 | (2,045 | ) | (2,213 | ) | ||||||||||
Net cash used in by operating activities
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(5,199 | ) | (3,028 | ) | (21,567 | ) | (10,849 | ) | ||||||||
Cash flows from investing activities:
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Purchase of term deposits
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(330 | ) | (2 | ) | (1,063 | ) | (40 | ) | ||||||||
Maturity of deposits
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316 | – | 11,084 | – | ||||||||||||
Restricted cash
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170 | 1,649 | 3,728 | (6,175 | ) | |||||||||||
Proceeds from disposal of property and equipment
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– | 5 | 4 | 18 | ||||||||||||
Purchase of property and equipment
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(170 | ) | (272 | ) | (311 | ) | (518 | ) | ||||||||
Purchase of businesses, net of cash acquired
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– | – | (3,500 | ) | (11,430 | ) | ||||||||||
Purchase of intangible assets and other asset
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(966 | ) | – | (1,022 | ) | – | ||||||||||
Net cash provided by (used in) investing activities
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(980 | ) | 1,380 | 8,920 | (18,145 | ) | ||||||||||
Cash flows from financing activities:
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Proceeds from bank borrowing
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337 | 173 | 2,881 | 7,667 | ||||||||||||
Repayment of bank borrowing
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(622 | ) | (1,350 | ) | (8,127 | ) | (3,440 | ) | ||||||||
Repurchase of ordinary shares
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– | (2,981 | ) | – | (2,981 | ) | ||||||||||
Payment of professional fee related to initial public offering
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– | (636 | ) | – | (964 | ) | ||||||||||
Payment of reimbursable issuance cost related to follow-on offering
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– | (168 | ) | – | 498 |
Payment of contingent consideration and deferred consideration for business acquisitions
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(3,151 | ) | (4,724 | ) | (5,100 | ) | (4,724 | ) | ||||||||
Proceeds from stock option exercises
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– | 1,203 | – | 1,203 | ||||||||||||
Net cash used in financing activities
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(3,436 | ) | (8,483 | ) | (10,346 | ) | (2,741 | ) | ||||||||
Effect of foreign exchange rate changes
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(11 | ) | 428 | 20 | 611 | |||||||||||
Net decrease in cash and cash equivalents
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(9,626 | ) | (9,703 | ) | (22,973 | ) | (31,124 | ) | ||||||||
Cash and cash equivalents, beginning of period
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43,781 | 118,935 | 57,128 | 140,356 | ||||||||||||
Cash and cash equivalents, end of period
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34,155 | 109,232 | 34,155 | 109,232 |
Three Months Ended June 30, 2012
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Three Months Ended June 30, 2011
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GAAP
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Adjustments
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Adjusted
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GAAP
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Adjustments
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Adjusted
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Cost of revenues
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$ | 45,869 | $ | (51 | ) |
(a)
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$ | 45,818 | $ | 40,429 | $ | (489 | ) |
(a)
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$ | 39,940 | ||||||||||
Gross profit
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16,217 | 51 |
(a)
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16,268 | 18,973 | 489 |
(a)
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19,462 | ||||||||||||||||||
Operating expenses
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12,741 | (1,007 | ) |
(a)
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11,734 | 15,289 | (4,599 | ) |
(a)
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10,690 | ||||||||||||||||
Operating income
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3,476 | 1,058 |
(a)
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4,534 | 3,684 | 5,088 |
(a)
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8,772 | ||||||||||||||||||
Net income
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2,414 | 1,058 |
(a)(d)
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3,472 | 2,884 | 5,088 |
(a)
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7,972 | ||||||||||||||||||
Net gross margin
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26.1 | % | 0.1 | % |
(b)
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26.2 | % | 31.9 | % | 0.8 | % |
(b)
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32.7 | % | ||||||||||||
Net operating margin
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5.6 | % | 1.7 | % |
(a)
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7.3 | % | 6.2 | % | 8.6 | % |
(a)
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14.8 | % | ||||||||||||
Net margin
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3.9 | % | 1.7 | % |
(a)
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5.6 | % | 4.9 | % | 8.6 | % |
(a)
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13.5 | % | ||||||||||||
Diluted EPS
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$ | 0.01 | $ | 0.01 |
(c)
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$ | 0.02 | $ | 0.01 | $ | 0.03 |
(c)
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$ | 0.04 | ||||||||||||
Diluted EPADS
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$ | 0.05 | $ | 0.02 |
(c)
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$ | 0.07 | $ | 0.06 | $ | 0.10 |
(c)
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$ | 0.16 |
Six Months Ended June 30, 2012
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Six Months Ended June 30, 2011
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GAAP
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Adjustments
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Adjusted
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GAAP
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Adjustments
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Adjusted
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Cost of revenues
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$ | 90,298 | $ | (107 | ) |
(a)
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$ | 90,191 | $ | 80,071 | $ | (972 | ) |
(a)
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$ | 79,099 | ||||||||||
Gross profit
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28,911 | 107 |
(a)
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29,018 | 32,897 | 972 |
(a)
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33,869 | ||||||||||||||||||
Operating expenses
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27,048 | (3,191 | ) |
(a)
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23,857 | 26,432 | (6,872 | ) |
(a)
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19,560 | ||||||||||||||||
Operating income
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1,863 | 3,298 |
(a)
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5,161 | 6,469 | 7,844 |
(a)
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14,313 | ||||||||||||||||||
Net income
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1,576 | 3,298 |
(a)(d)
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4,874 | 5,218 | 7,844 |
(a)(d)
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13,062 | ||||||||||||||||||
Net gross margin
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24.3 | % | 0.1 | % |
(b)
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24.4 | % | 29.1 | % | 0.9 | % |
(b)
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30.0 | % | ||||||||||||
Net operating margin
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1.6 | % | 2.8 | % |
(a)
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4.3 | % | 5.7 | % | 6.9 | % |
(a)
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12.6 | % | ||||||||||||
Net margin
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1.3 | % | 2.8 | % |
(a)
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4.1 | % | 4.6 | % | 6.9 | % |
(a)
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11.5 | % | ||||||||||||
Diluted EPS
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$ | 0.01 | $ | 0.02 |
(c)
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$ | 0.03 | $ | 0.03 | $ | 0.04 |
(c)
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$ | 0.07 | ||||||||||||
Diluted EPADS
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$ | 0.03 | $ | 0.07 |
(c)
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$ | 0.10 | $ | 0.11 | $ | 0.16 |
(c)
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$ | 0.27 |
Camelot Information Systems Inc.
|
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By: /s/ Yiming MA
|
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Name: Yiming MA
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Title: Chief Executive Officer
|