BEIJING, May 31, 2011 /PRNewswire-Asia/ -- VanceInfo
Technologies Inc. (NYSE: VIT) ("VanceInfo" or the "Company"), an IT
service provider and one of the leading offshore software
development companies in China,
today provided supplementary information to the Company's first
quarter 2011 financial results reported on May 16, 2011, including an unaudited corporate
deposit account list identifying each corporate cash account and
the balance and location of each account. The Company also issued
an unaudited quarterly cash flow statement disclosing the amount of
cash used for operating, investing and financing activities.
"In light of investors' recent concern over the financial
integrity and corporate governance practices of Chinese companies
listed in the United States,
we have decided to proactively disclose additional cash-related
information to further demonstrate our financial strength as well
as our dedication to transparency." said Chris Chen, Chairman and Chief Executive Officer
of VanceInfo. "We will also disclose our cash flow statements in
our future quarterly financial reports. While cash flows may
be more volatile than net profits on a quarterly basis due to
timing of collection, VanceInfo has been profitable with healthy
cash flow on an annual basis since its founding in 1995. We are
committed to continuing this track record in the years ahead.
In addition, I would like to reiterate our firm commitment to
upholding our culture of integrity and maintaining our tradition of
sound corporate governance in our dealings with customers,
employees, shareholders and other stakeholders."
In March 2011, the Company
announced that its Board of Directors approved a share repurchase
program, under which VanceInfo has been authorized, but is not
obligated, to repurchase up to $40
million worth of outstanding ADSs representing the ordinary
shares of VanceInfo from time to time over the next 12 months. As
of May 30, 2011, 863,355 ordinary
shares have been repurchased for a total consideration of
approximately $21 million from the
open market under this program. The Company intends to
continue the execution of the program should market volatilities
persist.
About VanceInfo
VanceInfo Technologies Inc. is an IT service provider and one of
the leading offshore software development companies in China. VanceInfo was the first China software development outsourcer listed
on the New York Stock Exchange.
The Company ranked number one among Chinese offshore software
development service providers for the North American and European
markets as measured by 2009 revenues, according to International
Data Corporation.
VanceInfo's comprehensive range of IT services includes research
& development services, enterprise solutions, application
development & maintenance, quality assurance & testing,
globalization & localization and other solutions and services.
VanceInfo provides these services primarily to corporations
headquartered in the United
States, Europe,
Japan and Greater China, targeting high-growth
industries such as telecommunications, technology, financial
services, travel and transportation services, manufacturing, retail
and distribution.
Safe Harbor
This news release includes statements that may constitute
forward-looking statements made pursuant to the safe harbour
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as will, should, expects, anticipates, future,
intends, plans, believes, estimates, and similar
statements. Among other things, the management's quotations
contain forward-looking statements. Such statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected. Potential risks and uncertainties
include, but are not limited to, the company's dependence on a
limited number of clients for a significant portion of its
revenues, the economic slowdown in its principal geographic
markets, the quality and portfolio of its services lines and
industry expertise, and the availability of a large talent pool in
China and supply of qualified
professionals, as well as the PRC government's investment in
infrastructure construction and adoption of various incentives in
the IT service industry. Further information regarding these
and other risks is included in VanceInfo's filings with the U.S.
Securities and Exchange Commission. All information provided
in this news release and in the attachments is as of May 31, 2011, and VanceInfo does not undertake
any obligation to update any forward-looking statement as a result
of new information, future events or otherwise, except as required
under applicable law.
VanceInfo
Technologies Inc.
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Cash and
Cash Equivalents, Restricted Cash, Term Deposit and
Held-to-maturity Securities List
|
|
(in US
dollars in thousands)
|
|
|
|
|
|
|
|
March 31,
2011(1)
|
|
Dec 31,
2010(2)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Agricultural Bank of China,
Dalian, PRC
|
7
|
|
4
|
|
Bank of Beijing, Beijing,
PRC
|
23,108
|
|
8,234
|
|
Bank of China, Wuhan, PRC
|
12
|
|
-
|
|
Bank of Communications, Wuhan,
PRC
|
1
|
|
-
|
|
Bank of Dalian, Beijing, PRC
|
*
|
|
*
|
|
Bank of Shanghai,
Shanghai, PRC
|
3,961
|
|
5,131
|
|
Bank of Tokyo-Mitsubishi
UFJ, Tokyo, Japan
|
578
|
|
499
|
|
Bank of Xi'an, Xi'an ,
PRC
|
5
|
|
4
|
|
China Construction Bank,
Tianjin, PRC
|
27
|
|
38
|
|
China Construction Bank,
Shanghai, PRC
|
2
|
|
2
|
|
China International Fund
Management Co., Ltd., Shanghai, PRC
|
2,358
|
|
12,857
|
|
China Merchants Bank,
Beijing, PRC
|
5,257
|
|
10,653
|
|
China Merchants Bank,
Chengdu, PRC
|
65
|
|
26
|
|
China Merchants Bank,
Guangzhou, PRC
|
80
|
|
80
|
|
China Merchants Bank,
Offshore Accounts , Shenzhen, PRC
|
29,287
|
|
2,731
|
|
China Merchants Bank,
Nanjing, PRC
|
4,703
|
|
597
|
|
China Merchants Bank,
Shanghai, PRC
|
3,023
|
|
2,854
|
|
China Merchants Bank,
Shenzhen, PRC
|
646
|
|
1,652
|
|
China Merchants Bank,
Wuxi, PRC
|
21
|
|
17
|
|
China Minsheng Banking
Corp., Ltd., Beijing, PRC
|
131
|
|
3,838
|
|
China Minsheng Banking
Corp., Ltd., Chengdu,
PRC
|
-
|
|
5
|
|
China Minsheng Banking
Corp., Ltd., Dalian, PRC
|
61
|
|
88
|
|
China Minsheng Banking
Corp., Ltd., Hangzhou,
PRC
|
211
|
|
202
|
|
China Minsheng Banking
Corp., Ltd., Shanghai,
PRC
|
52
|
|
258
|
|
China Minsheng Banking
Corp., Ltd., Wuhan, PRC
|
8
|
|
10
|
|
China Minsheng Banking
Corp., Ltd., Xi'an, PRC
|
19
|
|
21
|
|
Citibank, CA,
USA
|
392
|
|
222
|
|
DBS Bank, Hong Kong
|
2,542
|
|
2,430
|
|
Goldman Sachs (Asia)
L.L.C., Hong Kong
|
47,568
|
|
98,796
|
|
HSBC Bank,
Malaysia
|
46
|
|
9
|
|
HSBC Bank, Hong
Kong
|
10,358
|
|
6,248
|
|
HSBC Bank, London,
UK
|
28
|
|
44
|
|
HSBC Bank, Tianjin,
PRC
|
103
|
|
100
|
|
Industrial and Commercial
Bank of China, Shanghai, PRC
|
7
|
|
8
|
|
Morgan Stanley & Co.
International plc, London, UK
|
11,113
|
|
2,974
|
|
PayPal, USA
|
2
|
|
3
|
|
Shanghai Pudong
Development Bank , Shanghai, PRC
|
9
|
|
10
|
|
Standard Chartered Bank,
Beijing, PRC
|
12
|
|
146
|
|
Standard Chartered Bank,
Hong Kong
|
24
|
|
24
|
|
The Shanghai
Commercial &
Savings Bank, Taipei, Taiwan
|
183
|
|
128
|
|
US BANK, WA ,
USA
|
177
|
|
144
|
|
Wells Fargo, San Diego,
USA
|
198
|
|
151
|
|
Petty Cash
|
43
|
|
27
|
|
Cash and
Cash Equivalents
|
146,428
|
|
161,265
|
|
|
|
|
|
|
Goldman Sachs (Asia)
L.L.C. - Term Deposit
|
5,000
|
|
5,000
|
|
|
|
|
|
|
Term
Deposit
|
5,000
|
|
5,000
|
|
|
|
|
|
|
Bank of Shanghai,
Shanghai, PRC
|
686
|
|
679
|
|
|
|
|
|
|
Restricted
Cash
|
686
|
|
679
|
|
|
|
|
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|
Held-to-maturity
securities held with Goldman Sachs (Asia) L.L.C.
|
4,584
|
|
2,027
|
|
Held-to-maturity
securities held with Morgan Stanley & Co. Int'l plc
|
10,616
|
|
11,181
|
|
Held-to-maturity Securities -
current
|
15,200
|
|
13,208
|
|
|
|
|
|
|
Held-to-maturity
securities held with Goldman Sachs (Asia) L.L.C.
|
3,672
|
|
-
|
|
Held-to-maturity
securities held with Morgan Stanley & Co. Int'l plc
|
3,908
|
|
1,558
|
|
Held-to-maturity Securities,
non-current
|
7,580
|
|
1,558
|
|
|
|
|
|
|
Total
Held-to-maturity Securities(3)
|
22,780
|
|
14,766
|
|
|
|
|
|
|
Total
|
174,894
|
|
181,710
|
|
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* Less than 1
|
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1 Amounts shown that are
not held in U.S. dollars have been converted at the relevant
exchange rates as of March 31, 2011.
2 Amounts shown that are
not held in U.S. dollars have been converted at the relevant
exchange rates as of December 31, 2010.
3 All held-to-maturity
securities are investment grade bonds, with maturities of less than
18 months at the respective period-end.
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VanceInfo Technologies
Inc.
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CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
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(in U.S. dollars in
thousands)
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Three Months
Ended
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|
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March 31, 2011
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Dec 31, 2010
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(Unaudited)
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|
(Unaudited)
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
Net income
|
6,926
|
|
8,404
|
|
Adjustments to reconcile net
income to net cash (used in)
|
|
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|
provided by operating
activities:
|
|
|
|
|
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Share-based
compensation
|
1,744
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|
1,127
|
|
|
Depreciation and
amortization of property and equipment
|
1,654
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|
1,440
|
|
|
Amortization of intangible
assets
|
494
|
|
535
|
|
|
Loss (gain) on foreign
currency exchange forward contracts
|
(9)
|
|
131
|
|
|
Loss on disposal of
property and equipment
|
3
|
|
6
|
|
|
Allowance for doubtful
accounts
|
54
|
|
10
|
|
|
Change in fair value of
contingent consideration payable for acquisition
|
(89)
|
|
(414)
|
|
|
Earnings from equity
method investment
|
20
|
|
6
|
|
|
Gain on remeasurement of
fair value of noncontrolling equity investment in connection with
business acquisition
|
(514)
|
|
-
|
|
|
Accrued interest income of
available-for-sale investment
|
-
|
|
(16)
|
|
Changes in operating assets and
liabilities
|
|
|
|
|
|
Rental deposits and
prepaid rentals
|
(49)
|
|
(23)
|
|
|
Accounts
receivable
|
(10,228)
|
|
(8,347)
|
|
|
Prepaid expenses and other
current assets
|
(683)
|
|
1,110
|
|
|
Deferred income tax
assets-current
|
969
|
|
(849)
|
|
|
Deferred income tax
assets-non current
|
(7)
|
|
(3)
|
|
|
Accounts
payable
|
(439)
|
|
408
|
|
|
Deferred
revenue
|
(263)
|
|
121
|
|
|
Accrued expenses and other
current liabilities
|
(5,592)
|
|
3,196
|
|
|
Income tax
payable
|
(901)
|
|
882
|
|
|
Deferred income
|
713
|
|
(62)
|
|
|
Deferred income tax
liability-non current
|
(92)
|
|
(92)
|
|
Net cash (used in) provided by
operating activities
|
(6,289)
|
|
7,570
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
Purchase of property and
equipment
|
(1,390)
|
|
(3,336)
|
|
|
Consideration paid for business
acquisitions (net of cash acquired of $267 and nil for the three
months ended March 31, 2011 and December 31, 2010,
respectively)
|
(1,763)
|
|
(200)
|
|
|
Payment for settlement of
foreign currency forward exchange contracts
|
-
|
|
(388)
|
|
|
Cash received upon maturity of
term deposit
|
5,000
|
|
5,000
|
|
|
Purchase of Term
deposit
|
(5,000)
|
|
-
|
|
|
Purchase of current
investment-held-to-maturity securities
|
(3,156)
|
|
-
|
|
|
Purchase of non-current
investment-held-to-maturity securities
|
(6,079)
|
|
(1,560)
|
|
|
Proceeds from maturity of
investments
|
1,021
|
|
1,543
|
|
Net cash (used in) provided by
investing activities
|
(11,367)
|
|
1,059
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Proceeds from exercise of
options
|
2,423
|
|
1,000
|
|
|
Proceeds from issuance in
connection with share offering in 2010
|
-
|
|
89,816
|
|
|
Payment for issuance costs of
ordinary shares upon share offering in 2010
|
(52)
|
|
(507)
|
|
Net cash provided by financing
activities
|
2,371
|
|
90,309
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
448
|
|
443
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
(15,285)
|
|
98,938
|
|
Cash and cash equivalents,
beginning of period
|
161,265
|
|
61,884
|
|
Cash and cash equivalents, end
of period
|
146,428
|
|
161,265
|
|
|
|
|
|
|
For further
information, please contact:
Melissa Ning
Vice
President, Corporate
Strategy & Investor Relations
VanceInfo Technologies
Inc.
Tel:
+86-10-8282-5330
E-mail:
ir@vanceinfo.com
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SOURCE VanceInfo Technologies Inc.