Hollysys Automation Technologies Reports Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2009 Ended June 30, 2009
PRNewswire
Aug 17, 2009
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 China, today announced its unaudited financial results for its fiscal forth quarter and fiscal year 2009 ended June 30, 2009 (see attached tables).
Dr. Changli Wang, Hollysys' Chief Executive Officer, stated, "We are very pleased to report that we have concluded fiscal 2009 with another quarter of solid results. The rapid growth of our higher margin and higher growth business units of high-speed railway, subway, and nuclear was the dominant driver underpinning our revenue and net income growth for fiscal 2009.
"During this quarter, Hollysys won a contract to supply its train control center products (TCC) to China's Dacheng high-speed railway line of Chengdu Railway Bureau in April, and had completed delivering all the TCC components by the end of May. This contract win signified Hollysys' foothold in China's southwest region of high-speed railway market, as Dacheng line forms part of the Shanghai-Wuhan-Chengdu high-speed railway horizontal in the national high-speed railway network build-out plan. In addition, the expedited delivery requirements of the Dacheng railway project evidenced that China's ramped up stimulus spending on infrastructure has resulted in material impacts on our railway business. The successful delivery, installation, and commissioning of the railway line within such short timeframe fully demonstrated Hollysys team's strong project implementation capability and flexible production system, which will continue to remain as one of the key competitive differentiators to ensure Hollysys' leading position in China's high-speed railway build-out," commented by Dr. Wang.
Dr. Wang continued, "We are honored to be named as one of "China's Top Ten Automation Enterprises" by the Chinese Association of Automation, together with ABB, Emerson, and GE, at the 2009 Chinese Automation Industries Event (CAIE) held in May. This award is a validation of Hollysys' leading position in the automation field in China. As a technology-driven company, we dedicate significant resources to our R&D activities, which are the cornerstone to our dominant position in high-speed rail, nuclear and industrial automation. Hollysys will continue to leverage its strong R&D capabilities to enter and penetrate the market segments that are currently dominated by foreign players, and to continue delivering superb financial performance and creating long-term value for our shareholders."
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 June 30, 2009, total revenues increased 40.2% to $44.8 million, from $31.9 million in the comparable prior fiscal year period. Of the total revenues, revenue from integrated contracts increased 44.7% to $41.8 million, from $28.9 million for the same period of the prior year. The Company's integrated contract revenue by segment was as follows:
-- $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 $157.5 million, from $121.5 million in the prior fiscal year. Of the total revenues, revenue from integrated contracts increased 32.9% to $149.3 million, from $112.4 million for the prior fiscal year. The Company's integrated contract revenue by segment was as follows:
-- $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 June 30, 2009, Hollysys' total cost of revenues was $29.8 million, compared to $20.5 million for the same period of the prior year. The cost of integrated contracts increased to $28.1 million, or 67.2% of integrated contract revenue, for the three months ended June 30, 2009, compared to $19.4 million, or 67.0%, for the same period of the prior year.
For fiscal year 2009, Hollysys' total cost of revenues was $102.9 million, compared to $84.9 million for the prior year. The cost of integrated contracts increased to $99.4 million, or 66.6% of integrated contract revenue, for the year ended June 30, 2009, compared to $81.4 million, or 72.5%, for the prior year.
As a percentage of total revenues, overall gross margin was 33.5% for the three months ended June 30, 2009, as compared to 35.7% for the prior year period, mainly due to gross margin for products sold reduced from 61.9% to 42.5% year over year. The gross margin for integrated contracts was 32.8% for the three months ended June 30, 2009, compared to 33.0% for the same period of the prior year.
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 June 30, 2009, selling expenses were $2.3 million, compared to $2.7 million year over year, and $2.3 million quarter over quarter. As a percentage to total revenues, selling expenses were 5.2% and 8.3% for the three months ended June 30, 2009 and 2008, respectively.
For fiscal 2009, selling expenses were $10.0 million, compared to $9.7 million for the prior year. As a percentage of total revenues, selling expenses were 6.4% and 8.0% for year ended June 30, 2009 and 2008, respectively.
General and administrative expenses excluding non-cash stock-based compensation expense were $2.8 million for quarter ended June 30, 2009, or 6.1% as a percentage of total revenues, compared to $2.2 million, or 6.8%, for the same period of the prior year. Including the non-cash stock compensation cost recorded on a GAAP basis, G&A expenses were $25.1 million and $2.2 million for three months ended June 30, 2009 and 2008, respectively.
General and administrative expenses excluding non-cash stock-based compensation expense were $9.4 million, or 6.0% as a percentage of total revenues, for fiscal year 2009, as compared to $9.5 million, or 7,8%, year over year. Including the non-cash stock compensation recorded on a GAAP basis, G&A expenses were $49.0 million and $26.6 million for fiscal year 2009 and 2008, respectively.
Research and development expenses were $3.6 million for the three months ended June 30, 2009, compared to $1.0 million for the same period of the prior year. As a percentage to total revenue, R&D expenses were 8.0% and 3.0% for three months ended June 30, 2009 and 2008, respectively. The increase was mainly due to increased R&D activities.
Research and development expenses were $8.8 million for fiscal 2009, compared to $3.8 million for the prior year. As a percentage to total revenue, R&D expenses were 5.6% and 3.2% for year ended June 30, 2009 and 2008, respectively. The increase was mainly due to increased R&D activities.
For the three months ended June 30, 2009, non-GAAP net income excluding non-cash stock compensation cost was $6.3 million, or $0.14 per diluted share based on 46 million shares outstanding. This represents an increase of $0.4 million, or 8.3%, over the $5.9 million, or $0.13 per share based on 43 million shares outstanding, reported in the prior year period. On a GAAP basis, net income was $(16.0) million, or $(0.35) per diluted share based on 46 million shares outstanding, compared to net income of $5.8 million, or $0.13 per diluted share based on 44 million shares outstanding, for the same period of the prior year.
For fiscal year 2009, non-GAAP net income excluding non-cash stock compensation cost was $25.7 million, or $0.57 per diluted share based on 45 million shares outstanding. This represents an increase of $7.0 million, or 37.8%, over the $18.7 million, or $0.50 per share based on 38 million shares outstanding, reported in the prior year period. On a GAAP basis, net income was $(13.9) million, or $(0.31) per diluted share based on 45 million shares outstanding, compared to net income of $(1.7) million, or $(0.04) per diluted share based on 38 million shares outstanding, for the prior year.
Backlog Highlights
Hollysys' backlog as of June 30, 2009 was $188.9 million, compared to $177.7 million at March 31, 2009, and $178.5 million at June 30, 2008. The detailed breakdown for the backlog by segment is as followings:
-- $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 $8.9 million for the three months ended June 30, 2009. Including investing and financing activities, the total net cash inflow for the three months ended June 30, 2009 was $22.6 million. For fiscal year 2009, the operating cash inflow was $40.1 million, and total cash and cash equivalents increased by $64.6 million from fiscal year beginning.
Balance Sheet Highlights
As of June 30, 2009, Hollysys' cash and cash equivalents were $128.9 million, compared to $106.2 million at March 31, 2009, and $64.3 million at June 30, 2008. Days Sales Outstanding ("DSO") for fiscal 2009 is 147 days, significantly reduced from 167 days for the prior year. Inventory turnover is 79 days for year ended June 30 2009, as compared to 84 days year over year.
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 China, we believe that our growth will continue at a healthy rate of 20% in fiscal 2010."
Based on our operating results for fiscal 2009, we project our fiscal 2010 revenues to be in the range of USD 185.9M to USD 192.2M. We expect our fiscal 2010 non-GAAP net income to be in the range of USD 30.3M to USD 31.4M, which will translate into net income per share of USD 0.61 to USD 0.63, based on expected 50 million shares outstanding.
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 Tuesday, August 18, 2009. Interested parties may participate in the call by dialing the following numbers approximately 10 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 23681292.
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 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 and nuclear industries. Its proprietary technologies are applied in product lines, including Distributed Control Systems (DCS) and Programmable Logic Controllers (PLC), high-speed railway Train Control Centers (TCC) and Automatic Train Protection (ATP), and safety control product NMS for nuclear power plants. Hollysys 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 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.
CONTACT: Hollysys Automation Technologies, Ltd., Jennifer Zhang, Investor
Relations, +86-10-5898-1386, or investors@hollysys.com; Or Serena Wu, Investor
Relations, +1-646-593-8125, or serena.wu@hollysys.com
Web site: http://www.hollysys.com/
http://www.hollysys.com.sg/home/pubdown/180809.zip