HONG KONG, March 5, 2021 /PRNewswire/ -- CLPS Incorporation
(the "Company" or "CLPS") (Nasdaq: CLPS), today announced its
unaudited financial results for the six months ended December 31, 2020, or the first half of the
Company's fiscal year 2021.
First Half of Fiscal 2021 Highlights (all results compared to
the six months ended December 31,
2019)
- Revenues increased by 37.0% to $58.3
million from $42.6
million.
- Operating income increased by 213.5% to $3.9 million from $1.2
million.
- Net income increased by 114.9% to $4.9
million from $2.3
million.
- Net income attributable to CLPS Incorporation's shareholders
increased by 105.2% to $4.9 million
from $2.4 million.
- Basic and diluted earnings per share was $0.30 compared to $0.17 basic and diluted earnings per share.
- Net cash provided by operating activities increased by 66.2% to
$9.4 million from $5.7 million.
- Non-GAAP net income guidance for the fiscal year 2021 was
adjusted upwards to 60%-65% from 32%-37%.
Mr. Raymond Lin, Co-Founder and
Chief Executive Officer of CLPS, commented, "We have taken extreme
but decisive actions and showed highly resilient operational
delivery while prioritizing our people and clients during the
pandemic. As a professional IT services provider, we stood abreast
with our clients to enable and speed up digital transformation
ensuring uninterrupted business operations."
"Our growth strategy continued to prove its value, enabling us
to pivot with agility in this challenging moment. During the
period, we have done well in gaining more overseas and domestic
clients within our core industry scope. We maintained strong
relationship with our existing clients, which resulted to a 98%
client retention rate. In addition, we further advanced our mergers
and acquisition efforts both domestically and overseas. Our
acquisition of the remaining 20% ownership stake
in Ridik enabled us to expand our footprint not only in
Singapore, but also to its
neighboring countries in the Southeast
Asia and Asia Pacific
regions. In our commitment to sustain a sufficient supply of IT
talents, we launched training programs in partnership with
educational institutions and non-profit organization in
Hong Kong. On top of our annual
internship training program, CLPS Academy, the Company's training
arm, has successfully carried out its second wave of Global Fintech
Internship Program. It aims to introduce fresh talents with
up-to-date knowledge and skills in global fintech industry
perspective, thus meeting the talent demand from our top tier and
global client base."
"I am pleased with the solid level of stability and momentum we
achieved during the first half of fiscal 2021.I would like to
extend my gratitude to our staff, clients, partners, and
shareholders for your continued support particularly during this
challenging time. We attribute our success to you for your trust
and confidence in the Company."
Ms. Rui Yang, Chief Financial
Officer of CLPS, commented, "CLPS ended the first half of fiscal
year 2021 financial results on a solid note. We delivered total
revenue of $58.3 million, a sustained
growth of 37.0% year-over-year. Our operating income and net income
increased by triple digits year-over-year by 213.5% and 114.9%,
respectively, due to the positive effects of the Company's
economies of scale. Our GAAP and non-GAAP basic and diluted
earnings per share were $0.30 and
$0.39, respectively. As a
result of strong demand for IT services from our growing network of
clients and enhanced operational efficiency, our non-GAAP net
income guidance was adjusted upwards to 60%-65% from 32%-37% for
the fiscal 2021. Looking forward, we remain focus and optimistic
that our streamlined growth strategy will put us on a firm footing
to reach our business goal for the remainder of fiscal 2021."
First Half of Fiscal Year 2021 Financial Results
Revenues
In the first half of fiscal 2021, revenues increased by
$15.7 million, or 37.0%, to
$58.3 million from $42.6 million in the prior year period. This
increase in revenue was mainly due to an increase in revenue from
IT consulting services.
Revenues by Service
- Revenue from IT consulting services increased by $15.5 million, or 37.2%, to $57.1 million and accounted for 97.8% of total
revenue in the first half of fiscal 2021 from $41.6 million, or 97.7% of total revenue, in the
same period of the previous year. The increase was primarily due to
increased demand from existing and new clients. For the six months
ended December 31, 2020 and 2019,
41.0% and 41.3% of IT consulting services revenue were from
international banks, respectively.
- Revenue from customized IT solution services increased by
$0.4 million, or 51.1%, to
$1.1 million and accounted for 1.8%
of total revenue in the first half of fiscal 2021 from $0.7 million, or 1.6% of total revenue. The
increase was primarily due to increased demand from existing
clients in the banking and wealth management areas.
- Revenue from other services decreased by $0.1 million, or 25.3%, to $0.2 million and accounted for 0.3% of total
revenue in the first half of fiscal year 2021 from $0.3 million, or 0.6% of total revenue in the
same period of the previous year. The decrease was primarily due to
decreased demand for other services, including headhunting
service.
Revenues by Operational Areas
- Revenue from banking area increased by $7.1 million, or 33.1% to $28.7 million in the first half of fiscal 2021,
from $21.6 million in the prior year
period. Revenue from banking area accounted for 49.3% and 50.7% of
total revenues in the first half of fiscal 2021 and 2020,
respectively.
- Revenue from wealth management area increased by $2.0 million, or 21.8% to $11.4 million in the first half of fiscal 2021,
from $9.4 million in the prior year
period. Revenue from wealth management area accounted for 19.6% and
22.0% of total revenues in the first half of fiscal 2021 and 2020,
respectively.
- Revenue from e-Commerce area increased by $2.3 million, or 42.0% to $7.7 million in the first half of fiscal 2021,
from $5.4 million in the prior year
period. Revenue from e-Commerce area accounted for 13.2% and 12.7%
of total revenues in the first half of fiscal 2021 and 2020,
respectively.
- Revenue from automotive area increased by $1.5 million, or 72.9% to $3.5 million in the first half of fiscal 2021,
from $2.0 million in the prior year
period. Revenue from automotive area accounted for 6.0% and 4.7% of
total revenues in the first half of fiscal 2021 and 2020,
respectively.
Revenues by Geography
- Revenue generated outside of Mainland China increased by 53.9%
to $6.6 million in the first half of
fiscal year 2021 from $4.3 million in
the same period of the previous year. Revenue generated outside of
Mainland China accounted for 11.4% of total revenue compared to
10.1% in the prior year period. The increase in revenue generated
outside of Mainland China reflects the Company's successful and
continuous global expansion strategy.
Gross Profit
Gross profit increased by $3.1
million, or 20.2%, to $18.5
million in the first half of fiscal 2021 from $15.4 million in the prior year period.
Operating Expenses
Selling and marketing expenses increased by $0.4 million, or 27.7%, to $1.8 million in the first half of fiscal 2021
from $1.4 million in the prior year
period due to the increase of salary expenses as new staff were
hired, enabling the implementation of the Company's global
expansion strategy. As a percentage of total revenues, selling and
marketing expenses decreased to 3.1% in the first half of fiscal
2021 compared to 3.3% in the prior year period. The decrease was
primarily due to the increase in operational efficiency as a result
of economies of scale brought about by the Company's global
expansion strategy.
Research and development expenses increased by $1.2 million, or 22.7%, to $6.2 million in the first half of fiscal 2021
from $5.0 million in the prior year
period. The increase was primarily due to the increased research
and development personnel related expenses which enables the
Company's continued R&D efforts in big data, cloud computing,
robotic process automation (RPA) and artificial intelligence (AI).
As a percentage of total revenues, research and development
expenses decreased to 10.6% in the first half of fiscal 2021
compared to 11.8% in the prior year period. The decrease was
primarily due to the increase in operational efficiency as a result
of economies of scale.
General and administrative expenses decreased by $1.3 million, or 16.1%, to $6.6 million in the first half of fiscal 2021
from $7.9 million in the prior year
period. As a percentage of total revenues, general and
administrative expenses decreased to 11.4% in the first half of
fiscal 2021 compared to 18.6% in the prior year period. The
decrease was primarily due to the increase in operational
efficiency as result of economies of scale and refined management,
and decreased in general and administrative personnel expenses.
Operating Income
Operating income increased by $2.7
million, or 213.5%, to $3.9
million in the first half of fiscal 2021 from $1.2 million in the same period of the previous
year. Operating margin was 6.7% in the first half of fiscal 2021
compared to 2.9% in the prior year period.
Other Income and Expenses
Total other income, net of other expenses decreased to
$1.1 million in the first half of
fiscal 2021 from $1.3 million in the
prior year period.
Provision for Income Taxes
Provision for income taxes decreased by $0.3 million to $0.1
million in the first half of fiscal 2021 from $0.4 million in the same period of the previous
year, mainly due to the accrued deferred income tax assets from
accumulated losses of the Company's subsidiaries.
Net Income and EPS
Net income increased by $2.6
million, or 114.9%, to $4.9
million in the first half of fiscal 2021 from $2.3 million in the prior year period. After
excluding the impact of non-cash share-based compensation expenses,
non-GAAP net income[1] increased by $3.0 million, or 91.2%, to $6.4 million in the first half of fiscal 2021
from $3.4 million in the same period
of the previous year.
After excluding the impact of non-controlling interests, net
income attributable to CLPS Incorporation's shareholders in the
first half of fiscal 2021 was $4.9
million, or $0.30 basic and
diluted earnings per share compared to net income attributable to
CLPS Incorporation's shareholders of $2.4
million, or $0.17 basic and
diluted earnings per share. After excluding the impact of non-cash
share-based compensation expenses, non-GAAP net income attributable
to CLPS Incorporation's shareholders[2] in the first
half of fiscal 2021 was $6.4 million,
or $0.39 basic and diluted earnings
per share. This is compared to non-GAAP net income attributable to
CLPS Incorporation's shareholders of $3.4
million, or $0.24 basic and
diluted earnings per share, in the prior year period.
Cash Flow
As of December 31, 2020, the
Company had cash and cash equivalents of $26.0 million compared to $12.7 million as of June
30, 2020.
Net cash provided by operating activities was approximately
$9.4 million. Net cash provided by
investing activities was approximately $0.1
million. Net cash provided by financing activities was
approximately $2.4 million. The
effect of exchange rate change on cash was approximately positive
$1.4 million. The Company believes
that its current cash position and cash flow from operations are
sufficient to meet its anticipated cash needs for at least the next
12 months.
Financial Outlook
For fiscal year 2021, the Company expects, absent material
acquisitions or non-recurring transactions, total sales growth in
the range of approximately 30% to 35% compared to fiscal year 2020
financial results. The non-GAAP net income growth was adjusted in
the range of approximately 60% to 65% from 32% to 37% as previously
forecasted in the Company's second half and full year of fiscal
2020 financial report.
This forecast reflects the Company's current and preliminary
views, which are subject to change and are subject to risks and
uncertainties, including, but not limited to various risks and
uncertainties facing the Company's business and operations as
identified in its public filings.
Exchange Rate
The balance sheet amounts with the exception of equity as of
December 31, 2020, were translated at
6.5250 RMB to 1.00 USD compared to 6.9618 RMB to 1.00
USD as of December 31, 2019.
The equity accounts were stated at their historical rate. The
average translation rates applied to the income statements accounts
for the periods ended December 31,
2020 and 2019 were 6.7734 RMB
to 1.00 USD and 7.0297 RMB to 1.00
USD, respectively. The change in the value of the RMB
relative to the U.S. dollar may affect our financial results
reported in the U.S. dollar terms without giving effect to any
underlying change in our business or results of operation.
Conference Call Information
The Company will hold a conference call at 8:30 am ET on March 5,
2021 to discuss first half of fiscal 2021 results. Listeners
may access the call by dialing:
U.S.
Toll-Free:
|
+1-866-575-6539
|
U.S. Local
/International:
|
+1-323-994-2028
|
Mainland
China:
|
400 120
8590
|
Hong Kong:
|
800 961
384
|
To access the live webcast of the conference call, please visit
this link. The live and archived webcast will also be available
through the Company's investor relations website at
https://ir.clpsglobal.com.
A replay of the call will be available through March 19, 2021 by dialing:
U.S.
Toll-Free:
|
+1-844-512-2921
|
U.S.
Local/International:
|
+1-412-317-6671
|
Passcode:
|
3139679
|
About CLPS Incorporation
Headquartered in Hong Kong,
CLPS Incorporation (the "Company") (Nasdaq: CLPS) is a global
leading information technology ("IT"), consulting and solutions
service provider focusing on the banking, insurance and financial
sectors. The Company serves as an IT solutions provider to a
growing network of clients in the global financial industry,
including large financial institutions in the US, Europe, Australia, Southeast
Asia and Hong Kong, and
their PRC-based IT centers. The Company maintains 19 delivery
and/or research & development centers to serve different
customers in various geographic locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Baoding, Chengdu, Guangzhou, Shenzhen, Hangzhou, Suzhou and Hainan. The remaining eight global centers are
located in Hong Kong SAR, USA, UK,
Japan, Singapore, Malaysia, Australia, and India. For further information regarding the
Company, please visit: https://ir.clpsglobal.com/, or follow CLPS
on Facebook, LinkedIn, and Twitter.
Forward-Looking Statements
Certain of the statements made in this press release are
"forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include statements with respect to the
Company's beliefs, plans, objectives, goals, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and
other factors, which may be beyond the Company's control, and which
may cause the actual results, performance, capital, ownership or
achievements of the Company to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. All such statements attributable to us
are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties related to the Company's financial and operational
performance in the first half of fiscal 2021, its expectations of
the Company's future performance, its preliminary outlook and
guidance offered in this presentation, as well as the risks and
uncertainties described in the Company's most recently filed SEC
reports and filings. Such reports are available upon request from
the Company, or from the Securities and Exchange Commission,
including through the SEC's Internet website at http://www.sec.gov.
We have no obligation and do not undertake to update, revise or
correct any of the forward-looking statements after the date
hereof, or after the respective dates on which any such statements
otherwise are made.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is
prepared in conformity with accounting principles generally
accepted in the United States of
America ("U.S. GAAP"), except that the consolidated
statement of changes in shareholders' equity, consolidated
statements of cash flows, and the detailed notes have not been
presented. The Company uses non-GAAP operating income, non-GAAP
operating margin, non-GAAP net income attributable to CLPS
Incorporation's shareholders, and basic and diluted non-GAAP net
income per share, which are non-GAAP financial measures. Non-GAAP
operating income is operating income excluding share-based
compensation expenses. Non-GAAP operating margin is non-GAAP
operating income as a percentage of revenues. Non-GAAP net income
attributable to CLPS Incorporation's shareholders is net income
attributable to CLPS Incorporation's shareholders excluding
share-based compensation expenses. Basic and diluted non-GAAP net
income per share is non-GAAP net income attributable to common
shareholders divided by weighted average number of shares used in
the calculation of basic and diluted net income per share. The
Company believes that separate analysis and exclusion of the
non-cash impact of share-based compensation expenses clarity to the
constituent parts of its performance. The Company reviews these
non-GAAP financial measures together with GAAP financial measures
to obtain a better understanding of its operating performance. It
uses the non-GAAP financial measure for planning, forecasting and
measuring results against the forecast. The Company believes that
non-GAAP financial measure is useful supplemental information for
investors and analysts to assess its operating performance without
the effect of non-cash share-based compensation expenses, which
have been and will continue to be significant recurring expenses in
its business. However, the use of non-GAAP financial measures has
material limitations as an analytical tool. One of the limitations
of using non-GAAP financial measures is that they do not include
all items that impact the Company's net income for the period. In
addition, because non-GAAP financial measures are not measured in
the same manner by all companies, they may not be comparable to
other similar titled measures used by other companies. In light of
the foregoing limitations, you should not consider non-GAAP
financial measure in isolation from or as an alternative to the
financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, or as a substitute
for, the financial information prepared and presented in accordance
with U.S. GAAP. The Company encourages investors to carefully
consider its results under GAAP, as well as its supplemental
non-GAAP information and the reconciliation between these
presentations, to more fully understand its business. For more
information on these non-GAAP financial measures, please see the
table captioned "Reconciliations of Non-GAAP and GAAP Results" near
the end of this release.
Contact:
CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
[1]
Non-GAAP net income is a non-GAAP financial measure, which is
defined as net income excluding share-based compensation expenses.
Please refer to the section titled "Reconciliation of GAAP and
Non-GAAP Results" for details.
|
[2]
Non-GAAP net income attributable to CLPS Incorporation's
shareholders is a non-GAAP financial measure, which is defined as
net income attributable to the Company excluding share-based
compensation expenses. Please refer to the section titled
"Reconciliation of GAAP and Non-GAAP Results" for
details.
|
CLPS
INCORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Amounts in U.S.
dollars ("$"), except for number of shares)
|
|
|
|
As of
December 31,
|
|
As of
June 30,
|
|
|
|
2020
|
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
25,981,167
|
|
|
$
|
12,652,120
|
|
Short-term
investments
|
|
|
-
|
|
|
|
636,934
|
|
Accounts receivable,
net
|
|
|
31,205,299
|
|
|
|
25,753,856
|
|
Prepayments, deposits
and other assets, net
|
|
|
1,545,239
|
|
|
|
1,280,967
|
|
Prepaid income
tax
|
|
|
884,720
|
|
|
|
15,780
|
|
Amounts due from
related parties
|
|
|
-
|
|
|
|
169,185
|
|
Total Current
Assets
|
|
|
59,616,425
|
|
|
|
40,508,842
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
585,079
|
|
|
|
452,472
|
|
Intangible assets,
net
|
|
|
1,202,449
|
|
|
|
1,144,579
|
|
Goodwill
|
|
|
2,234,615
|
|
|
|
2,118,700
|
|
Long-term
investments
|
|
|
900,091
|
|
|
|
680,131
|
|
Prepayments, deposits
and other assets, net
|
|
|
537,063
|
|
|
|
244,387
|
|
Deferred tax assets,
net
|
|
|
448,154
|
|
|
|
203,247
|
|
Total
Assets
|
|
$
|
65,523,876
|
|
|
$
|
45,352,358
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
5,005,402
|
|
|
$
|
2,161,239
|
|
Accounts payable and
other current liabilities
|
|
|
773,511
|
|
|
|
489,043
|
|
Tax
payables
|
|
|
1,626,017
|
|
|
|
1,426,614
|
|
Contract
liabilities
|
|
|
868,222
|
|
|
|
755,178
|
|
Salaries and benefits
payable
|
|
|
19,472,224
|
|
|
|
11,522,268
|
|
Amount due to related
parties
|
|
|
67,918
|
|
|
|
-
|
|
Total Current
Liabilities
|
|
|
27,813,294
|
|
|
|
16,354,342
|
|
Long-term bank
loans
|
|
|
16,925
|
|
|
|
22,554
|
|
Deferred tax
liabilities
|
|
|
143,846
|
|
|
|
163,163
|
|
Unrecognized tax
benefits
|
|
|
311,923
|
|
|
|
194,939
|
|
TOTAL
LIABILITIES
|
|
|
28,285,988
|
|
|
|
16,734,998
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value, 100,000,000 shares authorized; 16,345,053
shares issued and outstanding as of
December 31,2020; 15,930,330 shares
issued and outstanding as of June 30,
2020; 13,913,201 shares issued and
outstanding as of June 30,
2019.*
|
|
|
1,635
|
|
|
|
1,593
|
|
Additional paid-in
capital
|
|
|
30,081,334
|
|
|
|
28,586,048
|
|
Statutory
reserves
|
|
|
2,954,993
|
|
|
|
2,803,811
|
|
Retained earnings
(accumulated deficits)
|
|
|
2,028,791
|
|
|
|
(2,680,143)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
770,144
|
|
|
|
(1,362,665)
|
|
|
|
|
|
|
|
|
|
|
Total CLPS
Incorporation's Shareholders' Equity
|
|
|
35,836,897
|
|
|
|
27,348,644
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
Interests
|
|
|
1,400,991
|
|
|
|
1,268,716
|
|
|
|
|
|
|
|
|
|
|
Total
Shareholders' Equity
|
|
|
37,237,888
|
|
|
|
28,617,360
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
65,523,876
|
|
|
$
|
45,352,358
|
|
|
* The shares and per
share data are presented on a retroactive basis to reflect the
nominal share issuance.
|
CLPS
INCORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS
|
OF INCOME AND
COMPREHENSIVE INCOME
|
(Amounts in U.S.
dollars ("$"), except for number of shares)
|
|
|
|
For the six months
ended December 31,
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
Revenues
|
|
58,318,208
|
|
|
42,568,264
|
Less: Cost of
revenues (note 1)
|
|
(39,840,283)
|
|
|
(27,191,640)
|
Gross
profit
|
|
18,477,925
|
|
|
15,376,624
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling and marketing
expenses (note 1)
|
|
1,793,807
|
|
|
1,404,227
|
Research and
development expenses
|
|
6,161,188
|
|
|
5,020,520
|
General and
administrative expenses (note 1)
|
|
6,629,000
|
|
|
7,897,096
|
Other operating
(loss), net
|
|
-
|
|
|
(187,496)
|
Total operating
expenses
|
|
14,583,995
|
|
|
14,134,347
|
Income from
operations
|
|
3,893,930
|
|
|
1,242,277
|
Subsidies and other
income, net
|
|
1,185,916
|
|
|
1,371,912
|
Other
expenses
|
|
(49,224)
|
|
|
(30,093)
|
|
|
|
|
|
|
Income before income
tax and share of income in equity investees
|
|
5,030,622
|
|
|
2,584,096
|
Provision for income
taxes
|
|
92,214
|
|
|
388,843
|
Income before share
of income in equity investees
Share of (loss)
income in equity investees, net of tax
Net income
|
|
4,938,408
(6,127)
4,932,281
|
|
|
2,195,253
99,468
2,294,721
|
Less: Net income
(loss) attributable to non-controlling interests
|
|
72,165
|
|
|
(74,220)
|
Net income
attributable to CLPS Incorporation's shareholders
|
$
|
4,860,116
|
|
$
|
2,368,941
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain (loss)
|
$
|
2,226,431
|
|
$
|
(139,745)
|
Less: foreign
currency translation gain attributable to non-controlling
interests
|
|
93,622
|
|
|
7,349
|
Other comprehensive
income (loss) attributable to CLPS
Incorporation's shareholders
|
$
|
2,132,809
|
|
$
|
(147,094)
|
|
|
|
|
|
|
Comprehensive income
attributable to
|
|
|
|
|
|
CLPS Incorporation
shareholders
|
$
|
6,992,925
|
|
$
|
2,221,847
|
Non-controlling
interests
|
|
165,787
|
|
|
(66,351)
|
|
$
|
7,158,712
|
|
$
|
2,155,496
|
|
|
|
|
|
|
Basic earnings per
common share*
|
$
|
0.30
|
|
$
|
0.17
|
Weighted average
number of share outstanding – basic
|
|
16,147,508
|
|
|
14,152,616
|
Diluted earnings per
common share*
|
$
|
0.30
|
|
$
|
0.17
|
Weighted average
number of share outstanding – diluted
|
|
16,174,530
|
|
|
14,204,248
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
(1) Includes
share-based compensation expenses as follows:
|
|
|
|
|
|
Cost of revenues
|
$
|
4,183
|
|
$
|
5,068
|
Selling and marketing
expenses
|
|
79,531
|
|
|
30,316
|
General and administrative
expenses
|
|
1,411,613
|
|
|
1,031,265
|
|
$
|
1,495,327
|
|
$
|
1,066,649
|
|
* The shares and per
share data are presented on a retroactive basis to reflect the
nominal share issuance.
|
CLPS
INCORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP AND GAAP RESULTS
|
(Amounts in U.S.
dollars ("$"), except for number of shares)
|
|
|
|
For the six months
ended
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
$
|
39,840,283
|
|
|
$
|
27,191,640
|
|
Less: share-based
compensation expenses
|
|
|
4,183
|
|
|
|
5,068
|
|
Non-GAAP cost of
revenues
|
|
$
|
39,836,100
|
|
|
$
|
27,186,572
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
$
|
1,793,807
|
|
|
$
|
1,404,227
|
|
Less: share-based
compensation expenses
|
|
|
79,531
|
|
|
|
30,316
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling
and marketing
expenses
|
|
$
|
1,714,276
|
|
|
$
|
1,373,911
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
$
|
6,629,000
|
|
|
$
|
7,897,096
|
|
Less: share-based
compensation expenses
|
|
|
1,411,613
|
|
|
|
1,031,265
|
|
Non-GAAP general
and administrative
expenses
|
|
$
|
5,217,387
|
|
|
$
|
6,865,831
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
3,893,930
|
|
|
$
|
1,242,277
|
|
Add: share-based
compensation expenses
|
|
|
1,495,327
|
|
|
|
1,066,649
|
|
Non-GAAP operating
income
|
|
$
|
5,389,257
|
|
|
$
|
2,308,926
|
|
|
|
|
|
|
|
|
|
|
Operating
Margin
|
|
|
6.7%
|
|
|
|
2.9%
|
|
Add: share-based
compensation expenses
|
|
|
2.5%
|
|
|
|
2.5%
|
|
Non-GAAP operating
margin
|
|
|
9.2%
|
|
|
|
5.4%
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,932,281
|
|
|
$
|
2,294,721
|
|
Add: share-based
compensation expenses
|
|
|
1,495,327
|
|
|
|
1,066,649
|
|
Non-GAAP net
income
|
|
$
|
6,427,608
|
|
|
$
|
3,361,370
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to CLPS
Incorporation's shareholders
|
|
$
|
4,860,116
|
|
|
$
|
2,368,941
|
|
Add: share-based
compensation expenses
|
|
|
1,495,327
|
|
|
|
1,066,649
|
|
Non-GAAP net
income attributable to
CLPS Incorporation's shareholders
|
|
$
|
6,355,443
|
|
|
$
|
3,435,590
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of share
outstanding used in computing GAAP and
non-GAAP basic earnings
|
|
|
16,147,508
|
|
|
|
14,152,616
|
|
GAAP Basic earnings
per common share
|
|
$
|
0.30
|
|
|
$
|
0.17
|
|
Add: share-based
compensation expenses
|
|
|
0.09
|
|
|
|
0.07
|
|
Non-GAAP basic
earnings per common
share
|
|
$
|
0.39
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of share
outstanding used in computing GAAP
diluted earnings
|
|
|
16,174,530
|
|
|
|
14,204,248
|
|
Add: effect of
dilutive securities
|
|
|
-
|
|
|
|
-
|
|
Weighted average
number of share
outstanding used in computing non-GAAP
diluted earnings
|
|
|
16,174,530
|
|
|
|
14,204,248
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings
per common share
|
|
$
|
0.30
|
|
|
$
|
0.17
|
|
Add: share-based
compensation expenses
|
|
|
0.09
|
|
|
|
0.07
|
|
Non-GAAP diluted
earnings per common
share
|
|
$
|
0.39
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-first-half-of-fiscal-year-2021-301241417.html
SOURCE CLPS