BEIJING, May 15, 2012 /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 reported its unaudited financial results for the first
quarter ended March 31, 2012.
First Quarter 2012 Financial and Operating Highlights
- Net revenues for the first quarter of 2012 increased to
$86.1 million, up 50.0% from
$57.4 million for the first quarter
of 2011.
- Net revenues from the Consulting and Solutions business
increased to $9.8 million, up 109.1%
over the same quarter last year.
- Diluted earnings per share ("EPS") and non-GAAP diluted EPS(1)
were $0.08 and $0.16, respectively, for the first quarter of
2012.
- Employees totaled 15,693, including 14,111 billable
professionals, as of March 31,
2012.
"We are pleased to report a strong quarter with revenue growth
exceeding our expectation," said Chris
Chen, Chairman and Chief Executive Officer of VanceInfo.
"Demand remains healthy in both domestic and overseas markets. And
we are beginning to see encouraging returns on our strategic
investment in Consulting and Solutions capabilities, which has
strengthened our client engagement model and further enhanced our
competitive advantage. With continued growth opportunities ahead,
we are confident in our ability to accomplish the financial and
operational goals that we have laid out for 2012. "
First Quarter 2012 Financial Results
Due to the seasonal nature of its business, the Company presents
its financial analysis on a year-over-year basis, comparing the
first quarter of 2012 and the first quarter of 2011 as in the
following paragraphs.
Net Revenues
Net revenues were $86.1 million in
the first quarter of 2012, up 50.0% from $57.4 million for the first quarter of 2011. The
increase in net revenues was primarily driven by the growing demand
in both the Greater China
(including mainland China,
Hong Kong, Taiwan and Macau) and overseas markets.
Net Revenues by Service Lines
Beginning from the first quarter 2012, the Company reclassified
its services into four broad sets: R&D Outsourcing Services,
Consulting and Solutions Services, Application Management Services
and Other Solutions & Services. R&D Outsourcing Services
consist of the research & development service line and the
globalization & localization service line. Consulting and
Solutions Services consist of consulting, business intelligence,
ERP implementation and industry-specific solutions. Application
Management Services consist of application development and
maintenance ("ADM") and quality assurance and testing services.
Other Solutions & Services consist of business process
outsourcing ("BPO") and system integration ("SI")
services.
Consistent with the Company's growth strategy, net revenues from
Consulting and Solutions Services grew 109.1% over the same period
in 2011 and contributed 11.3% of total net revenues in the first
quarter of 2012. Net revenues from Application Management Services
accounted for 34.2% of total net revenues, increasing 58.2%
compared to the first quarter of 2011. Net revenues from Other
Solutions & Services increased to 3.9% of total net revenues in
the first quarter of 2012, up 234.9% over the first quarter of
2011.
|
Three Months
Ended
March 31,
2012
|
Three Months
Ended
March 31,
2011
|
|
(in thousands of US$,
except percentages)
|
|
R&D Outsourcing
Services
|
43,479
|
50.6%
|
33,090
|
57.7%
|
|
Consulting and Solutions
Services
|
9,760
|
11.3%
|
4,667
|
8.1%
|
|
Application Management
Services
|
29,484
|
34.2%
|
18,640
|
32.5%
|
|
Other Solutions &
Services
|
3,387
|
3.9%
|
1,011
|
1.7%
|
|
Total net
revenues
|
86,110
|
100.0%
|
57,408
|
100.0%
|
Net Revenues by Geographic Markets
Based on the location of our clients' headquarters, net revenues
from clients headquartered in Greater
China were $40.2 million, or
46.7% of total net revenues in the first quarter of 2012, followed
by 35.2% from clients headquartered in the United States, 12.4% in Europe and 3.9% in Japan.
Measuring the Company's revenues by geographic markets based on
the location of the contract signing entities, Greater China accounted for 67.0% of total net
revenues in the first quarter of 2012, while the United States accounted for 25.6% in the
same period.
Net Revenues by Industries
The Company classifies its clients into four broad industry
segments: Telecommunications ("Telecom"), High Technology ("High
Tech"), Banking, Financial Services and Insurance ("BFSI"), and
other industry segments including manufacturing, retail,
distribution, travel and transportation and public services, etc.
("Others").
|
Three Months
Ended
March 31,
2012
|
Three Months
Ended
March 31,
2011
|
|
(in thousands of US$,
except percentages)
|
|
Telecom
|
31,183
|
36.2%
|
24,816
|
43.2%
|
|
High Tech
|
30,037
|
34.9%
|
18,970
|
33.0%
|
|
BFSI
|
13,876
|
16.1%
|
6,421
|
11.2%
|
|
Others
|
11,014
|
12.8%
|
7,201
|
12.6%
|
|
Total net
revenues
|
86,110
|
100.0%
|
57,408
|
100.0%
|
Largest Clients
Revenues from the top five clients totaled $46.0 million or 53.5% of total net revenues in
the first quarter of 2012, down from 56.1% in the first quarter of
2011. The decline in customer concentration reflected our continued
efforts to diversify our customer base. Excluding top five clients,
net revenues in the first quarter of 2012 grew 59.1% over the same
period in 2011.
Gross Profit and Gross Margin
Gross profit in the first quarter of 2012 was $27.0 million, an increase of 25.8% from
$21.5 million in the first quarter of
2011. Gross margin was 31.4% in the first quarter of 2012, compared
to 37.4% in the first quarter of 2011. Gross profit included
$1.3 million and $1.2 million of government subsidies in the first
quarter of 2012 and 2011, respectively. The lower gross margin in
the first quarter of 2012 reflected the wage inflation in excess of
billing rate increase as compared to the same period in 2011 as
well as the near-term impact from our investment in the BFSI
vertical and the Consulting and Solutions Services practice, which
have been in the intensive build-up phase in the past three
quarters.
Operating Expenses
Selling, general and administrative expenses totaled
$24.3 million for the first quarter
of 2012, up 54.5% from $15.8 million
a year ago. The increase in selling, general and administrative
expenses was primarily due to the investment in consulting oriented
pre-sale activities and higher staff costs as compared to the first
quarter of 2011.
Operating Income and Operating Margin
As a result of increased costs and expenses as described above,
operating income in the first quarter of 2012 was $3.1 million, compared to $6.8 million in the first quarter of 2011.
Non-GAAP operating income1 in the first quarter of 2012
was $6.7 million, compared to
$8.9 million in the same period a
year ago. Non-GAAP operating margin(1) was 7.8% in the first
quarter of 2012, compared to 15.6% in the first quarter of
2011.
Provision for Income Taxes
The provision for income taxes was $0.7
million in the first quarter of 2012, compared to
$0.8 million in the first quarter of
2011. The effective income tax rate was 17.4%, compared to 10.7% in
the same period of 2011. The higher effective income tax rate
reflected expiration of tax holiday at one of our major operating
subsidies in China.
Net Income and EPS
Net income in the first quarter of 2012 was $3.3 million, compared to $6.9 million in the first quarter of 2011.
Non-GAAP net income(1) was $6.9
million in the first quarter of 2012, compared to
$9.1 million in the same period a
year ago. Non-GAAP net margin(1) was 8.0% in the first quarter of
2012, compared with 15.8% in the year-ago quarter.
For the first quarter of 2012, diluted EPS and Non-GAAP diluted
EPS(1) were $0.08 and $0.16, respectively, based on 43.9 million total
ADS-equivalent average shares outstanding, compared with
$0.15 and $0.20, respectively, for the first quarter of
2011.
The non-GAAP measures and related reconciliations to GAAP
measures are described in the accompanying section of "About
Non-GAAP Financial Measures" and the accompanying table of
"Reconciliations of Non-GAAP Financial Measures to Comparable GAAP
Measures."
Cash and Cash Flow
As of March 31, 2012, VanceInfo
had cash and cash equivalents, restricted cash, term deposits and
short-term investments totaling $95.7
million. Operating cash flow in the first quarter of 2012
was a net outflow of approximately $11.0
million, compared with a net outflow of $6.2 million in the first quarter of 2011. The
operating cash flow reflected the seasonality and annual bonus
pay-out to employees in the first quarter. Investing cash flow in
the first quarter of 2012 included a $5.9
million capital expenditure in the construction of our new
headquarters.
Days sales outstanding ("DSO") was 132 days for the first
quarter of 2012, compared with 115 days for the fourth quarter of
2011. DSO was 127 days for the trailing twelve months ended
March 31, 2012, which is the same as
the DSO for the trailing twelve months ended December 31, 2011.
DSO was calculated by dividing average accounts receivable, net
of average deferred revenues, by the period's gross revenues before
business tax, and multiplying by the number of days in the
corresponding period.
|
Three Months
Ended
|
Twelve Months
Ended
|
|
March 31,
2012
|
December
31, 2011
|
March 31,
2012
|
December 31,
2011
|
|
( in thousands of
US$)
|
|
Gross revenues before
business tax
|
88,155
|
90,127
|
320,048
|
290,583
|
|
Average deferred
revenues
|
4,214
|
3,605
|
3,298
|
2,863
|
Note: Deferred revenues include advances from clients.
Twelve-month average amounts are calculated based on the respective
five quarter-end balances.
Outlook for the Second Quarter and Full Year 2012
For the second quarter of 2012, the Company expects:
- Second quarter 2012 net revenues to be at least $91 million, representing at least 33% increase
from the corresponding period in 2011.
- Second quarter 2012 non-GAAP diluted EPS(1) to be between
$0.19 and $0.20, based on 44.2
million total ADS-equivalent average shares outstanding.
For the full year of 2012:
- The Company raised its guidance and expects 2012 net revenues
to be at least $368 million,
representing at least 30% increase from 2011.
- The Company reaffirms its original 2012 non-GAAP diluted EPS(1)
guidance of $0.86 to $0.92,
representing an increase of 16.2% to 24.3% from 2011, based on 44.3
million total ADS-equivalent average shares outstanding. The
non-GAAP diluted EPS guidance reflects the Company's commitment to
investing in and diversifying its business, the continued wage
inflation environment in China and
higher effective income tax rate in 2012.
- The EPS outlook assumes an effective income tax rate of 14% to
16%.
Conference Call
The Company will host a corresponding conference call and live
webcast to discuss the results at 8:00 AM
Eastern Daylight Time (EDT) on Tuesday, May 15, 2012 (8:00 PM Beijing/Hong
Kong time). Please dial-in five minutes prior to the call to
register and receive further instruction.
The dial-in details for the live conference call are as
below:
- U.S. Toll Free Dial-in Number: + 1.866.519.4004
- International Dial-in Number: +65.6723.9381
- Hong Kong Dial-in Number: +852.2475.0994
Passcode: 72161717
The conference call will be available live via webcast on the
Investors section of VanceInfo Technologies website at
http://ir.vanceinfo.com. The archive replay will be available on
VanceInfo's website shortly after the call.
A dial-in replay of the conference call will be available until
May 23, 2012:
- U.S. Toll Free Dial-in Number: +1.866.214.5335
- International Dial-in Number: +61.2.8235.5000
Passcode: 72161717
(1) Non-GAAP income from operations, net income, diluted EPS and
related margins exclude share-based compensation expense,
amortization of acquired intangible assets and land use right, and
change in fair value of contingent consideration payable for
business acquisition. The non-GAAP measures and related
reconciliations to GAAP measures are described in the accompanying
section of "About Non-GAAP Financial Measures" and the accompanying
tables of "Reconciliations of Non-GAAP Financial Measures to
Comparable GAAP Measures" and "Reconciliations of Forward-Looking
Guidance for Non-GAAP Financial Measures to Comparable GAAP
Measures" at the end of the press release.
About VanceInfo
VanceInfo Technologies Inc. is an IT service provider and one of
the leading offshore software development companies in China.
The Company ranked number one among Chinese offshore software
development service providers for the North American and European
markets as measured by 2010 revenues, according to International
Data Corporation (IDC). This marks the fourth consecutive year that
VanceInfo has been ranked number one by IDC in this category.
VanceInfo's comprehensive range of IT services includes R&D
Outsourcing Services, Consulting and Solutions Services,
Application Management Services and Other Solutions & Services.
VanceInfo provides these services primarily to corporations
headquartered in Greater China,
the United States, Europe and Japan, 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 harbor
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
and "Outlook for the Second Quarter and Full Year 2012" 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 service lines and
industry expertise, and the availability of a large talent pool in
China and inflation of qualified
professionals' wages, 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 15, 2012, 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.
About Non-GAAP Financial Measures
To supplement VanceInfo's consolidated financial results
presented in accordance with GAAP, VanceInfo uses the following
measures defined as non-GAAP financial measures by the SEC: income
from operations, net income and diluted EPS excluding share-based
compensation expense, amortization of acquired intangible assets
and land use right, and change in fair value of contingent
consideration payable for business acquisition. The non-GAAP income
from operations, net income and diluted EPS for prior periods have
been reclassified so that the presentations are consistent. The
presentation of these non-GAAP financial measures is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see
the tables captioned "Reconciliations of Non-GAAP Financial
Measures to Comparable GAAP Measures" and "Reconciliations of
Forward-Looking Guidance for Non-GAAP Financial Measures to
Comparable GAAP Measures" set forth at the end of this release.
VanceInfo believes that these non-GAAP financial measures
provide meaningful supplemental information regarding its
performance by excluding certain expenses and expenditures that may
not be indicative of its operating performance. The Company
believes that both management and investors benefit from referring
to these non-GAAP financial measures in assessing the Company's
performance and when planning and forecasting future periods. A
limitation of using non-GAAP net income and diluted EPS is that
these non-GAAP measures exclude the share-based compensation
charges, amortization of acquired intangible assets and land use
right, and change in fair value of contingent consideration payable
for business acquisition that have been and will continue to be,
for the foreseeable future, a significant recurring expense in the
business. Management compensates for these limitations by providing
specific information regarding the GAAP amounts excluded from each
non-GAAP measure. The accompanying tables have more details on the
reconciliations between GAAP financial measures that are comparable
to non-GAAP financial measures. The reconciliations of the
forward-looking guidance for non-GAAP financial measures to the
most directly comparable GAAP financial measures in the
accompanying table include all information reasonably available to
VanceInfo at the date of this press release. The table includes
adjustments that the Company can reasonably predict.
|
VANCEINFO
TECHNOLOGIES INC.
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
(US dollars in
thousands, except share data)
|
|
|
March
31,
|
|
December
31,
|
|
2012
|
|
2011
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
83,256
|
|
96,170
|
|
Term deposits
|
-
|
|
5,000
|
|
Restricted
cash
|
3,176
|
|
1,587
|
|
Held-to-maturity
securities-current
|
9,307
|
|
9,401
|
|
Accounts receivable, net
of allowance for doubtful accounts of $2,779
as of March 31, 2012 and $2,200 as of
December 31, 2011, respectively
|
137,463
|
|
126,389
|
|
Other current
assets
|
22,566
|
|
16,042
|
|
Total current
assets
|
255,768
|
|
254,589
|
|
|
|
|
|
Property and equipment,
net
|
36,170
|
|
36,580
|
|
Long-term
investment
|
200
|
|
-
|
|
Goodwill and other
intangible assets
|
76,986
|
|
67,807
|
|
Land use
right
|
23,776
|
|
23,884
|
|
Other long-term
assets
|
3,433
|
|
3,036
|
|
Total assets
|
396,333
|
|
385,896
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities
|
63,050
|
|
66,438
|
|
Non-current
liabilities
|
20,882
|
|
16,014
|
|
Total
liabilities
|
83,932
|
|
82,452
|
|
|
|
|
|
Equity(a)
|
312,401
|
|
303,444
|
|
|
|
|
|
Total liabilities and
equity
|
396,333
|
|
385,896
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
(a) As of March 31,
2011, there were 44,714,963 ordinary shares issued and 42,320,390
ordinary shares outstanding, excluding
2,394,573 treasury stocks in the form of
ADSs repurchased from the open market.
|
|
VANCEINFO
TECHNOLOGIES INC.
|
|
Condensed
Consolidated Statements of Comprehensive Income
(Unaudited)
|
|
(US dollars in
thousands, except per share data)
|
|
|
|
|
|
Three months ended
March 31,
|
|
2012
|
|
2011
|
|
|
|
|
|
Net
revenues
|
86,110
|
|
57,408
|
|
Cost of
revenues(a)
|
(59,061)
|
|
(35,909)
|
|
Gross profit
|
27,049
|
|
21,499
|
|
|
|
|
|
Selling, general and
administrative expenses(a)
|
(24,340)
|
|
(15,759)
|
|
Change in fair value of
contingent consideration payable
for business acquisition
|
(89)
|
|
89
|
|
Other operating
income
|
502
|
|
952
|
|
Income from
operations
|
3,122
|
|
6,781
|
|
Interest income,
net
|
529
|
|
468
|
|
Exchange
difference
|
363
|
|
15
|
|
Gain on re-measurement
of fair value of noncontrolling equity
investment in connection with business
acquisition
|
-
|
|
514
|
|
Provision for income
taxes
|
(698)
|
|
(832)
|
|
Income before earnings
in equity method investment
|
3,316
|
|
6,946
|
|
Earnings(Loss) in equity
method investment
|
16
|
|
(20)
|
|
Net
income
|
3,332
|
|
6,926
|
|
Income attributable
to VanceInfo Technologies Inc. shareholders
|
3,332
|
|
6,926
|
|
Earnings per
share
|
|
|
|
|
Basic - ordinary
shares
|
0.08
|
|
0.16
|
|
Diluted - ordinary
shares
|
0.08
|
|
0.15
|
|
|
|
|
|
Net
income
|
3,332
|
|
6,926
|
|
Other comprehensive
income, net of tax
|
280
|
|
1,213
|
|
Comprehensive
income
|
3,612
|
|
8,139
|
|
Comprehensive income
attributable to VanceInfo Technologies Inc.
Shareholders
|
3,612
|
|
8,139
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands)
|
|
|
|
|
Basic - ordinary
shares
|
42,098
|
|
43,822
|
|
Diluted - ordinary
shares
|
43,938
|
|
46,159
|
|
|
|
|
|
Note:
|
|
|
|
|
(a) Depreciation
and amortization expenses included in cost of revenues and selling,
general and administrative expenses totaled $3,069
and $2,148 for the three months
ended March 31, 2012 and 2011, respectively. Share-base
compensation included in cost of revenues and
selling, general and
administrative expenses totaled $2,382 and $1,745 for the three
months ended March 31, 2012 and 2011, respectively.
|
|
|
VANCEINFO
TECHNOLOGIES INC.
|
|
Condensed
Consolidated Statements of Cash Flow (Unaudited)
|
|
(US dollars in
thousands)
|
|
|
|
Three months
ended March 31,
|
|
|
|
2012
|
|
2011
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net
income
|
3,332
|
|
6,926
|
|
|
Adjustments to reconcile net income to net cash provided
by
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
Share-based
compensation
|
2,382
|
|
1,745
|
|
|
Depreciation and
amortization of property and equipment
|
1,956
|
|
1,654
|
|
|
Amortization of
intangible assets
|
992
|
|
494
|
|
|
Amortization of
land use right
|
121
|
|
-
|
|
|
Gain on foreign
currency exchange forward contracts
transfer to statements of operations
|
(233)
|
|
(9)
|
|
|
Loss (gain) on
disposal of property and equipment
|
10
|
|
(3)
|
|
|
Allowance for
doubtful accounts
|
611
|
|
54
|
|
|
Change in fair
value of contingent consideration payable for
acquisition
|
89
|
|
(89)
|
|
|
(Earnings) loss in
equity method investment
|
(16)
|
|
20
|
|
|
Gain on
remeasurement of fair value of noncontrolling
equity investment in connection with business
acquisition
|
-
|
|
(514)
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
Rental deposits
and prepaid rentals
|
(103)
|
|
(49)
|
|
|
Accounts
receivable
|
(10,922)
|
|
(10,228)
|
|
|
Prepaid expenses
and other current assets
|
(1,032)
|
|
(893)
|
|
|
Deferred income
tax assets-current
|
817
|
|
969
|
|
|
Deferred income
tax assets-non current
|
-
|
|
(7)
|
|
|
Other long term
asstes
|
(291)
|
|
-
|
|
|
Accounts
payable
|
(1,642)
|
|
(439)
|
|
|
Deferred
revenue
|
610
|
|
(263)
|
|
|
Accrued expenses
and other payables
|
(6,670)
|
|
(5,272)
|
|
|
Income tax
payable
|
(674)
|
|
(901)
|
|
|
Deferred
income
|
(120)
|
|
713
|
|
|
Deferred income
tax liability-non current
|
(187)
|
|
(92)
|
|
|
Net cash used
in operating activities
|
(10,970)
|
|
(6,184)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Purchase of
property and equipment
|
(1,335)
|
|
(1,384)
|
|
|
Payment for
construction in progress
|
(5,947)
|
|
-
|
|
|
Consideration paid
for business acquisitions
|
(603)
|
|
(1,763)
|
|
|
Cash received upon
maturity of term deposit
|
5,000
|
|
5,000
|
|
|
Purchase of term
deposit
|
-
|
|
(5,000)
|
|
|
Restricted
cash
|
(1,584)
|
|
-
|
|
|
Purchase of
non-current investment - held-to-maturity
|
-
|
|
(6,079)
|
|
|
Purchase of
current investment - held-to-maturity
|
-
|
|
(3,156)
|
|
|
Proceeds from
maturity of investments - held-to-maturity
|
-
|
|
1,021
|
|
|
Proceeds from
disposal of property and equipment
|
7
|
|
-
|
|
|
Net cash used
in investing activities
|
(4,462)
|
|
(11,361)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Proceeds from
exercise of options
|
1,081
|
|
553
|
|
|
Proceeds from
discounted nonvested shares granted
|
-
|
|
1,870
|
|
|
Payment for
issuance costs of ordinary shares upon
share offering in 2010
|
-
|
|
(52)
|
|
|
Consideration paid
for business acquisitions
|
(91)
|
|
-
|
|
|
Proceeds of
short-term bank loan
|
1,584
|
|
-
|
|
|
Net cash
provided by financing activities
|
2,574
|
|
2,371
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash
|
(56)
|
|
337
|
|
|
Net decrease in
cash and cash equivalents
|
(12,858)
|
|
(15,174)
|
|
|
Cash and cash
equivalents, beginning of period
|
96,170
|
|
161,265
|
|
|
Cash and cash
equivalents, end of period
|
83,256
|
|
146,428
|
|
|
VANCEINFO
TECHNOLOGIES INC.
|
|
Reconciliations of
Non-GAAP Financial Measures to Comparable GAAP
Measures
|
|
(US dollars in
thousands, except per share data and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2012
|
|
Three Months Ended
March 31, 2011
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
$3,122
|
|
$3,584
|
(a)
|
$6,706
|
|
$6,781
|
|
$2,150
|
(b)
|
$8,931
|
|
Operating
margin
|
3.6%
|
|
4.2%
|
(a)
|
7.8%
|
|
11.8%
|
|
3.8%
|
(b)
|
15.6%
|
|
Net income
|
$3,332
|
|
$3,584
|
(a)
|
$6,916
|
|
$6,926
|
|
$2,150
|
(b)
|
$9,076
|
|
Net margin
|
3.9%
|
|
4.1%
|
(a)
|
8.0%
|
|
12.1%
|
|
3.7%
|
(b)
|
15.8%
|
|
Diluted EPS
|
$0.08
|
|
$0.08
|
(c)
|
$0.16
|
|
$0.15
|
|
$0.05
|
(c)
|
$0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustment to
exclude acquisition related intangible assets amortization expense
of $992, land use right amortization expense
of $121, change in fair value of
contingent consideration payable for business acquisition of $89
and share-based
compensation of $2,382 from the unaudited condensed consolidated
statements of operations.
|
|
(b) Adjustment to
exclude acquisition related intangible assets amortization expense
of $494, change in fair value of contingent
consideration payable for business acquisition of $(89) and
share-based compensation of $1,745 from the unaudited condensed
consolidated statements of
operations.
|
|
|
(c) Non-GAAP diluted EPS
is computed by dividing non-GAAP net income attributable to
VanceInfo Technologies Inc. by the
weighted average number of diluted
ordinary shares outstanding used in computing the GAAP diluted EPS
for the respective periods.
|
|
|
|
VANCEINFO
TECHNOLOGIES INC.
|
|
Reconciliations of
Forward-Looking Guidance for
|
|
Non-GAAP Financial
Measures to Comparable GAAP Measures
|
|
(US dollars in
thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ending
June 30, 2012
|
|
Year Ending December
31, 2012
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
Range of
Estimate
|
|
|
|
Range of
Estimate
|
|
Range of
Estimate
|
|
|
|
Range of
Estimate
|
|
|
|
|
|
|
|
|
|
From
|
To
|
|
|
|
From
|
To
|
|
Diluted EPS
(a)
|
0.10
|
0.11
|
|
0.09
|
(b)
|
0.19
|
0.20
|
|
0.54
|
0.60
|
|
0.32
|
(b)
|
0.86
|
0.92
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Based on 44.2
million and 44.3 million total ADS-equivalent average shares
outstanding for the second quarter 2012 and full year 2012,
respectively.
|
|
(b) Reflects estimated
adjustment for acquisition related intangible assets amortization
expenses, land use right amortization expense and share-based
compensation expenses of approximately $3.8 million for the second
quarter 2012 and $14.1 million for the full year 2012.
|
For further information, please contact:
Sheryl Zhang
Investor Relations
VanceInfo Technologies Inc.
Tel: +86-10-8282-5330
E-mail: ir@vanceinfo.com
SOURCE VanceInfo Technologies Inc.