Net revenues increased 90% year-over-year
Adjusted net income attributable to Camelot(1) increased 102% year-over-year
BEIJING, Aug. 20 /PRNewswire-Asia-FirstCall/ -- Camelot Information Systems Inc. (NYSE: CIS, the "Company" or "Camelot"), a leading domestic provider of enterprise application services and financial industry information technology services in China, today announced its unaudited financial results for the second quarter ended June 30, 2010.
SECOND QUARTER 2010 FINANCIAL AND OPERATING HIGHLIGHTS
-- Net revenues increased 90.4% year-over-year to US$44.1 million.
-- Adjusted operating income(1) increased 103.8% year-over-year to
US$7.4 million from US$3.6 million in the second quarter 2009. U.S.
GAAP operating income increased 50.7% year-over-year to US$4.2 million
from US$2.8 million in the second quarter 2009.
-- Adjusted net income(1) attributable to Camelot increased 102.3%
year-over-year to US$6.5 million from US$3.2 million in the second
quarter 2009. U.S. GAAP net income attributable to Camelot increased
40.4% year-over-year to US$3.4 million from US$2.4 million in the
second quarter 2009.
-- Adjusted diluted earnings per share(1) was US$0.04, as compared to
diluted earnings per share of US$0.02 in the second quarter 2009. U.S.
GAAP diluted earnings per share was US$0.02 in second quarter 2010 and
US$0.02 in the second quarter 2009. Adjusted diluted earnings per
American Depositary Share ("ADS") was US$0.18, as compared to diluted
net earnings per ADS of US$0.10 in the second quarter 2009. U.S. GAAP
diluted earnings per ADS(2) was US$0.09, a 23.9% increase from US$0.07
in the second quarter 2009.
-- Employees totalled 3,116, including 2,625 information technology (IT)
professionals, as of June 30, 2010, representing a 57.3% increase in
total employees and a 56.9% increase in IT professionals compared with
June 30, 2009.
Mr. Simon Ma, Camelot's Chairman and Chief Executive Officer, commented, "We are pleased to report a very strong set of quarterly financial and operational results, following on from our July 21 initial public offering (IPO) on the New York Stock Exchange. Amidst volatile capital market conditions, our successful listing demonstrated investors' confidence in the strength of our revenue model and the attractive positioning of our business. Our listing also affords us the financial flexibility and global recognition to execute on our growth initiatives and capitalize on the positive industry dynamics in China's high-growth, underpenetrated IT services market.
"During the second quarter, revenue increased significantly, helping us to achieve 90.4% year-over-year top-line growth. Our Enterprise Application Services ("EAS") continued to benefit from overall market expansion, strong client engagement, and further growth in our leading market share. Performance in our Financial Industry IT Services ("FIS") segment also strengthened, boosted by the integration of our customized solutions acquisitions which positioned us to capture the next wave of financial services sector IT spending. As the Chinese banking industry becomes more sophisticated and competition increases, banks are facing growing pressure to improve customer operations and financial product innovation, giving rise to a new phase of industry-wide development and opportunity for Camelot. Going into the second half of 2010, we expect the growth momentum across our business lines, especially in EAS, will continue."
Ms. Heidi Chou, Camelot's Chief Operating Officer, added, "Our goal is to become the market leader in each of the IT service and solutions markets in China that we address by broadening our service offering and capitalizing on cross-selling opportunities. A prime example of our approach is exhibited by our activities in the Financial Industry IT Services (FIS) segment. Entering the second half of 2010, we are poised to benefit from our two recently acquired customized solutions providers which capture this next phase of financial sector IT spending in China. One of the customized solutions relates to automating bank teller systems and branch operations to improve customer experiences. The other is a financial supply chain solution that enables banks to offer innovative loan products while reducing overall credit risks. These products have significantly increased our FIS scope and scale, and provide us with considerable ongoing cross-selling opportunities with EAS and within FIS, on which we intend to capitalize in coming quarters."
Mr. Gordon Lau, Chief Financial Officer, commented, "Our listing provides us with the financial strength to execute our strategic and operational plans, as we increase the scalability of our business and enhance our margin profile. We believe our competitive advantages across all businesses, strong execution capability and favourable industry dynamics position us to achieve sustained top- and bottom-line growth. As a result, we anticipate net revenue for the third quarter 2010 to be approximately US$46.4 million, and adjusted net income attributable to Camelot to be approximately US$8.9 million."
SECOND QUARTER 2010 FINANCIAL RESULTS AND OPERATIONAL UPDATES
Net Revenues
Net revenues for the second quarter 2010 increased 90.4% to US$44.1 million from US$23.1 million in the second quarter 2009.
Net Revenues by Service Line
Three Months Ended Three Months Ended
June 30, 2010 June 30, 2009
(in thousands, except percentage)
Enterprise application
services 28,940 65.7% 15,301 66.1%
Financial industry IT
services 15,130 34.3% 7,847 33.9%
Total net revenue 44,070 100.0% 23,148 100.0%
EAS revenues increased 89.1% year-over-year to US$28.9 million, primarily reflecting the rapid growth of this service line as we increased our leading market position and benefitted from the general industry and financial market recovery in recent periods. FIS revenues increased 92.8% year-over-year to US$15.1 million, the increase being primarily a result of the contribution from the acquisition of customized solutions providers Tansun and Agree in 2009 ("customized solutions acquisitions").
EAS and FIS accounted for 65.7% and 34.3% of total net revenues, respectively, in the second quarter 2010, as compared to 66.1% and 33.9%, respectively, in the same period of the previous year, reflecting a shift to a more balanced contribution from the Company's two service lines.
Gross Profit and Gross Margin
Adjusted gross profit(1) increased 85.7% to US$14.0 million, from US$7.5 million in the second quarter 2009, as a result of revenue growth from both service lines. U.S. GAAP gross profit was US$13.4 million, compared to US$7.5 million for same period last year. The difference between adjusted and GAAP gross profit represents US$0.6 million in share-based compensation and the amortization of intangible assets relating to the customized solutions acquisitions.
Adjusted gross margin(1) in the second quarter 2010 was 31.7%, as compared to 32.5% in the second quarter 2009, as Camelot increased investment in order to capture new growth opportunities. U.S. GAAP gross margin for the second quarter 2010 was 30.5%, compared with 32.3% in the second quarter 2009.
Operating Expenses
Adjusted operating expenses(1) were US$6.6 million, a 67.3% year-over-year increase compared to the same period last year. U.S. GAAP operating expenses increased 95.0% to US$9.2 million from US$4.7 million in the second quarter 2009. The increase was mainly due to business expansion and the operating expenses incurred by the two customized solutions providers acquired in 2009. The difference between adjusted and GAAP operating expenses reflected US$0.5 million in share based compensation, US$1.1 million in amortization expenses, and US$1.0 million changes in fair value of contingent consideration incurred from the two customized solutions acquisitions in 2009.
Operating Income and Operating Margin
Adjusted operating income(1) in the second quarter 2010 increased 103.8% to US$7.4 million from US$3.6 million in the second quarter 2009. U.S. GAAP operating income in the second quarter 2010 increased 50.7% to US$4.2 million as compared to US$2.8 million in the second quarter 2009.
Adjusted operating margin(1) for the second quarter 2010 was 16.7%, compared with 15.6% in the second quarter 2009. U.S. GAAP operating margin for the second quarter 2010 was 9.5%, compared with 12.0% in the year-earlier period.
Net Income Attributable to Camelot and Earnings Per Share
As a result of the foregoing, adjusted net income(1) attributable to Camelot for the second quarter increased 102.3% to US$6.5 million from US$3.2 million in the second quarter 2009. U.S. GAAP net income attributable to Camelot for the second quarter 2010 increased 40.4% to US$3.4 million from US$2.4 million in the second quarter 2009.
Adjusted net margin(1) was 14.8% in the second quarter 2010, compared to 14.0% in the second quarter 2009. U.S. GAAP net margin was 7.7% in the second quarter 2010, compared to 10.4% in second quarter 2009, reflecting an increase in amortization of share based compensation, intangible assets and change in fair value of contingent consideration for the customized solutions acquisitions in 2009.
Second quarter 2010 adjusted diluted earnings per share(1) was US$0.04, compared to adjusted diluted earnings per share of US$0.02 in the second quarter 2009. U.S. GAAP diluted earnings per share in the second quarter 2010 was US$0.02, in line with diluted earnings per share of US$0.02 in the year-earlier period.
Second quarter 2010 adjusted diluted earnings per ADS(2) was US$0.18, compared to adjusted diluted earnings per ADS(2) of US$0.10 in the same period of the previous year. U.S. GAAP diluted earnings per ADS(2) in the second quarter 2010 was US$0.09, a 23.9% increase from diluted earnings per ADS(2) of US$0.07 in the second quarter 2009.
Cash, Cash Flow and Days Sales Outstanding
As of June 30, 2010, the Company had US$18.5 million in cash and cash equivalents, excluding term deposits. Operating cash flow was US$0.8 million for the second quarter 2010.
Days sales outstanding(3) ("DSO") was 138 for the second quarter 2010, unchanged from the second quarter 2009.
Employees
Employees totalled 3,116, including 2,625 information technology (IT) professionals, as of June 30, 2010, representing a 57.3% increase in total employees and a 56.9% increase in IT professionals compared with June 30, 2009. In terms of IT professionals, EAS employee headcount was 1,487, and FIS employee headcount was 1,138 at June 30, 2010.
(1) For more information about the adjusted (i.e. non-GAAP) financial
measures contained in this press release, please see "Use of Non-GAAP
Financial Measures" below.
(2) One American Depositary Share ("ADS") is equivalent to four ordinary
shares.
(3) Calculated by dividing average accounts receivable, net of deferred
revenue, by rolling gross revenue before business tax and related
surcharges, and multiplying by 360 days. Rolling gross revenue is for
the 12 months ended June 30, 2010.
RECENT DEVELOPMENTS
Initial Public Offering
Camelot's initial public offering on the New York Stock Exchange raised US$146.7 million, ranking it as the largest ever United States (US) IPO from a Chinese IT services company, as well as the largest US IPO from China in 2010 at the time of listing on July 21, 2010. This milestone event has provided the Company with funding and flexibility to execute on its business expansion objectives, including the pursuit of additional strategic acquisitions, and will make Camelot's equity incentive scheme more effective, which in turn will strengthen its ability to attract and retain top talent.
THIRD QUARTER AND FULL-YEAR 2010 GUIDANCE
Third Quarter 2010
Camelot expects net revenues for the third quarter 2010 to be approximately US$46.4 million, representing a 35.9% increase from the third quarter 2009.
The Company expects third quarter 2010 adjusted net income attributable to Camelot to be approximately US$8.9 million, representing a 28.4% increase from the third quarter 2009.
Camelot expects third quarter 2010 adjusted diluted earnings per share to be approximately US$0.05, in line with US$0.05 in the third quarter 2009, based on 176.3 million weighted average ordinary shares outstanding. Third quarter 2010 adjusted diluted earnings per ADS is expected to be approximately US$0.20 based on 44.1 million weighted average ADSs outstanding, compared with US$0.21 for the third quarter 2009.
Full Year 2010
The Company expects net revenues for the full year 2010 to be approximately US$176.4 million, representing a 49.5% increase from 2009.
Camelot expects full-year 2010 adjusted net income attributable to Camelot to be approximately US$28.2 million, representing a 53.2% increase from 2009.
Camelot expects full-year 2010 adjusted diluted earnings per share to be approximately US$0.17, based on 164.3 million weighted average ordinary shares outstanding. And the Company expects full-year 2010 adjusted diluted earnings per ADS to be approximately US$0.69 based on 41.1 million weighted average ADSs, compared to adjusted diluted earnings per ADS US$0.55 from 2009.
CONFERENCE CALL INFORMATION
Camelot's management will host a conference call on Friday, August 20, 2010 at 5:00 am (US Pacific) / 8:00 am (US Eastern) / 8:00 pm (Beijing) to discuss its second quarter 2010 financial results and recent business activity. The conference call may be accessed by calling:
US Toll Free Dial In +1 866 730 5763
US Toll +1 857 350 1587
International Dial In +1 857 350 1587
Hong Kong toll free 800 96 3844
Hong Kong toll +852 3002 1672
UK toll free 00 800 280 02002
UK toll +44 207 365 8426
South China toll free / China Telecom 10 800 130 0399
North China toll free / China Telecom 10 800 852 1490
South China toll free / China Netcom 10 800 852 1490
Participant Passcode Camelot
Please dial in 10 minutes before the call is scheduled to begin.
A replay of the conference call may be accessed by phone at the following numbers until Friday, August 27, 2010:
US Toll Free Dial In +1 888 286 8010
US Toll / International Dial In +1 617 801 6888
Passcode 63345727
Additionally, a live and archived webcast of the conference call will be available on the investor relations section of Camelot's website at http://www.camelotchina.com .
USE OF NON-GAAP FINANCIAL MEASURES
To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP, Camelot uses the non-GAAP ("adjusted") financial measures of gross profit and margin, operating expenses, operating income and margin, net income attributable to Camelot Information Systems Inc. and margin, and diluted earnings per share and diluted earnings per ADS, which are adjusted from results based on U.S. GAAP to exclude share-based compensation, acquisition-related intangible amortization, gain from extinguishment of liability, postponed initial public offering costs, and changes in fair value of contingent consideration. The non-GAAP financial measure is provided as additional information to help our investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of our current financial performance and prospects for the future. The non-GAAP financial measure should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, our calculation of the non-GAAP financial measure may be different from the calculation used by other companies, and therefore comparability may be limited.
STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION
The unaudited financial information set forth above is subject to adjustments that may be identified when audit work is performed on the Company's year-end financial statements, which could result in significant differences from this unaudited financial information.
ABOUT CAMELOT INFORMATION SYSTEMS INC.
Camelot is a leading domestic provider of enterprise application services and financial industry IT services in China, focusing on the high end of the IT value chain. The Company is the largest domestic provider of SAP-based Enterprise Resource Planning services in China as measured by 2009 revenue and by number of SAP consultants as of December 31, 2009. Camelot also operates in other areas of the Asia Pacific region, including Taiwan and Japan. The Company provides services to a wide range of industries, including financial services, resources and energy, manufacturing and automobile, technology, as well as telecommunication, media and education. For more information about Camelot Information Systems Inc., please visit http://www.camelotchina.com .
SAFE HARBOR
This announcement contains forward-looking statements. These statements are made under 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," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, 2010 financial outlook and quotations from management in this announcement, as well as strategic and operational plans, contain forward-looking statements. Camelot may also make written or oral forward-looking statements in periodic reports to the Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to second parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Camelot's anticipated growth strategies; Camelot's future business development, results of operations and financial condition; expected changes in the Company's revenues and certain cost or expense items; Camelot's ability to attract customers and leverage its brand; trends and competition in the software industry; the Company's ability to control expenses and maintain profit margins; the Company's ability to hire, train and retain qualified managerial and other employees; the Company's ability to develop new software and pilot new business models at desirable locations in a timely and cost-effective manner; the performance of third parties under contracts with the Company; the expected growth of the Chinese economy software market in retail and consumer goods industries; and Chinese governmental policies relating to private managers and operators of software and applicable tax rates.
Further information regarding these and other risks is included in Camelot's filings with the SEC. All information provided in this press release and in the attachments is as of August 19, 2010, and the Company undertakes no duty to update such information or any other forward-looking information, except as required under applicable law.
For further information, please contact:
Camelot Information Systems Inc.
Gordon Lau, Chief Financial Officer
Tel: +86-10-5810-0808
Email: investors@camelotchina.com
Investor Relations (Hong Kong)
Ruby Yim, Managing Director
Taylor Rafferty
Tel: +852-3196-3712
Email: camelot@taylor-rafferty.com
Investor Relations (US)
Mahmoud Siddig, Director
Taylor Rafferty
Tel: +1-212-889-4350
Email: camelot@taylor-rafferty.com
CAMELOT INFORMATION SYSTEMS INC.
Condensed Consolidation Balance Sheets (Unaudited)
(US Dollars in thousands, except share data)
June 30, December 31,
2010 2009
Assets
Current assets
Cash and cash equivalents 18,457 33,820
Restricted cash 2,517 2,372
Billed account receivable 26,727 21,026
Unbilled account receivable 60,628 47,188
Term deposits 154 299
Other current assets 12,525 9,052
Total current assets 121,008 113,757
Property and equipment, net 4,373 4,119
Goodwill and other intangible assets 68,696 71,718
Other long-term assets 1,331 1,673
Total assets 195,408 191,267
Liabilities and shareholders' equity
Current liabilities
Consideration payable in connection
with business
acquisition and debt extinguishment 7,570 14,239
Contingent consideration in relation
to
acquisition of Agree and Tansun 2,477 --
Other current liabilities 46,941 42,906
Total current liability 56,988 57,145
Contingent consideration in relation
to acquisition 11,650 12,820
Other non-current liabilities 4,890 5,345
Total liabilities 73,528 75,310
Shareholders' equity (a) 121,880 115,957
Total liabilities and shareholders'
equity 195,408 191,267
Notes:
(a) As of June 30, 2010, there were 90,572,994 ordinary shares issued and outstanding.
CAMELOT INFORMATION SYSTEMS INC.
Condensed Consolidated Statements of Operations (Unaudited)
(US dollars in thousands, except per share data)
Three months ended June 30, Six months ended June 30,
2010 2009 2010 2009
Net revenue 44,070 23,148 79,382 43,670
Cost of revenues(1)(2) -30,649 -15,675 -57,189 -30,420
Gross profit 13,421 7,473 22,193 13,250
Selling and
marketing(1)(2) -2,390 -1,139 -4,760 -2,239
General and
administrative(1) -5,316 -2,879 -9,571 -6,178
Research and
development costs -529 -719 -955 -1,354
Changes in fair value
of contingent -- --
consideration for
acquisition -1,000 -- -1,306 --
Total operating
expenses -9,235 -4,737 -16,592 -9,771
Government Subsidies -- 42 -- 42
Income from operations 4,186 2,778 5,601 3,521
Interest expenses -115 -8 -238 -22
Interest income 16 32 60 48
Gain on short-term
investment -- 44 -- 44
Income before
provisions for income
tax 4,087 2,846 5,423 3,591
Income tax expense -703 -418 -992 -528
Net income 3,384 2,428 4,431 3,063
Non-controlling
interest -12 -26 -26 -24
Net income
attributable to
parent co. 3,372 2,402 4,405 3,039
Earnings per share
Basic-ordinary shares 0.02 0.02 0.03 0.02
Basic-Series A
convertible preferred
shares 0.02 0.02 0.03 0.02
Basic-Series B
convertible preferred
shares 0.02 0.02 0.03 0.02
Diluted-ordinary
shares 0.02 0.02 0.03 0.02
Weighted average
shares outstanding
Basic-ordinary shares 90,572,994 79,574,814 90,572,994 79,574,814
Basic-Series A
convertible preferred
shares 44,055,018 44,055,018 44,055,018 44,055,018
Basic-Series B
convertible preferred
shares 4,019,328 4,019,328 4,019,328 4,019,328
Diluted-ordinary
shares 147,621,952 130,300,615 146,260,731 130,110,996
(1) Includes the following amounts of share-based compensation expenses
for the periods indicated
Three months ended June 30, Six months ended June 30,
2010 2009 2010 2009
Cost of revenues 40 33 80 66
Selling and marketing 50 25 100 50
General and
administrative 433 179 754 421
Total share-based
compensation expenses 523 237 934 537
(2) Includes the following amounts of amortization expense related to
intangible assets acquired for business combination for the periods
indicated
Three months ended June 30, Six months ended June 30,
2010 2009 2010 2009
Cost of revenues 521 23 1,042 45
Selling and marketing 1,123 570 2,284 1,136
Total share-based
compensation expenses 1,644 593 3,326 1,181
(3) The following table sets forth the reconciliation of our adjusted net
income attributable to Camelot Information Systems Inc. to the U.S.
GAAP net income attributable to Camelot Information Systems Inc.
Three months ended June 30, Six months ended June 30,
2010 2009 2010 2009
Net income
attributable to
Camelot Information
Systems Inc.
(U.S. GAAP) 3,372 2,402 4,405 3,039
Share-based
compensation 523 237 934 537
Acquisition-related
intangible
amortization 1,644 593 3,326 1,181
Changes in fair value
of contingent
consideration 1,000 -- 1,306 --
Total adjusted amounts 3,167 830 5,566 1,718
Adjusted net income
attributable to
Camelot Information
Systems Inc. 6,539 3,232 9,971 4,757
CAMELOT INFORMATION SYSTEMS INC.
Reconciliations of Adjusted Financial Measures to Comparable GAAP Measures
(US dollars in thousands, except per share data and percentage)
Three months ended June 30, 2010
GAAP Adjustments Adjusted
Cost of revenues 30,649 -561 (a) 30,088
Operating expenses 9,235 -2,606 (a) 6,629
Operating income 4,186 3,167 (a) 7,353
Net income (C) 3,372 3,167 (a) 6,539
Net gross margin 30.5% 1.3% (a) 31.7%
Net operating margin 9.5% 7.2% (a) 16.7%
Net margin 7.7% 7.2% (a) 14.8%
Diluted EPS $0.02 $0.02 (b) $0.04
Six months ended June 30, 2010
GAAP Adjustments Adjusted
Cost of revenues 57,189 -1,122 (a) 56,067
Operating expenses 16,592 -4,444 (a) 12,148
Net income (c) 4,405 5,566 (a) 9,971
Net gross margin 28.0% 1.4% (a) 29.4%
Net operating margin 7.1% 7.0% (a) 14.1%
Net margin 5.5% 7.0% (a) 12.6%
Diluted EPS $0.03 $0.04 (b) $0.07
Three months ended June 30, 2009
GAAP Adjustments Adjusted
Cost of revenues 15,675 -56 (a) 15,619
Operating expenses 4,737 -774 (a) 3,963
Operating income 2,778 830 (a) 3,608
Net income (c) 2,402 830 (a) 3,232
Net gross margin 32.3% 0.2% (a) 32.5%
Net operating margin 12.0% 3.6% (a) 15.6%
Net margin 10.4% 3.6% (a) 14.0%
Diluted EPS $0.02 $0.00 (b) $0.02
Six months ended June 30, 2009
GAAP Adjustments Adjusted
Cost of revenues 30,420 -111 (a) 30,309
Operating expenses 9,771 -1,607 (a) 8,164
Net income (c) 3,039 1,718 (a) 4,757
Net gross margin 30.3% 0.3% (a) 30.6%
Net operating margin 8.1% 3.9% (a) 12.0%
Net margin 7.0% 3.9% (a) 10.9%
Diluted EPS $0.02 $0.02 (b) $0.04
Notes:
(a) Please see note below Condensed Consolidated Statements of Operations.
(b) Adjusted diluted EPS is computed by dividing adjusted net income attributable to Camelot Information Systems Inc. by the weighted average number of diluted ordinary shares outstanding used in computing the GAAP diluted EPS for the respective periods.
(c) Net income refers to net income attributable to Camelot.
CAMELOT INFORMATION SYSTEMS INC.
Adjusted Financial Guidance to Comparable GAAP Guidance
(US dollars in millions, except per share data and percentage)
Three months ended Sep. 30, 2010
GAAP Adjustments Adjusted
Net income (a) 5.9 3.0 (b) 8.9
Diluted EPS $0.03 (c) $0.02 (b) $0.05 (c)
Year Ended Dec. 31, 2010
GAAP Adjustments Adjusted
Net income (a) 16.1 12.1 (b) 28.2
Diluted EPS $0.10 (c) $0.07 (b) $0.17 (c)
Notes:
(a) Net income refers to net income attributable to Camelot.
(b) Reflects estimated adjustment for acquisition-related intangible assets amortization expense, share-based compensation and changes in fair value of contingent consideration for acquisition.
(c) Based on 176.3 and 164.3 million weighted average ordinary shares outstanding for the three-month period ended Sep 30, 2010 and year ended Dec. 31, 2010.
CAMELOT INFORMATION SYSTEMS INC.
Quarterly Data Sheet
Net Revenues by Service Line by Quarter
(US Dollars in Thousands) 2Q10 2Q09 1H10
Enterprise application services 28,940 15,301 53,945
Financial industry IT services 15,130 7,847 25,437
Total net revenues 44,070 23,148 79,382
(As % of Total Net Revenue)
Enterprise application services 65.7% 66.1% 68.0%
Financial industry IT services 34.3% 33.9% 32.0%
Total net revenues 100.0% 100.0% 100.0%
Net Revenues by Service Line by latest 6 Quarter
(US Dollars in Thousands) 2Q10 1Q10 4Q09
Enterprise application services 28,940 25,005 26,265
Financial industry IT services 15,130 10,307 13,925
Total net revenues 44,070 35,312 40,190
(As % of Total Net Revenue)
Enterprise application services 65.7% 70.8% 65.4%
Financial industry IT services 34.3% 29.2% 34.6%
Total net revenues 100.0% 100.0% 100.0%
Net Revenues by Industry Verticals
(As % of Total Net Revenue) 2Q10 2Q09 1H10
Financial services 36.6% 34.5% 33.6%
Resources and energy 21.9% 16.6% 22.6%
Manufacturing and automobile 15.4% 9.6% 16.0%
Technology 12.4% 21.6% 12.6%
Others 13.7% 17.7% 15.2%
Total 100.0% 100.0% 100.0%
Net Revenues by Geographic Markets
(As % of Total Net Revenue) 2Q10 2Q09 1H10
PRC and Taiwan 90.5% 89.5% 89.3%
Japan 7.1% 10.2% 8.1%
Others 2.4% 0.3% 2.6%
Total 100.0% 100.0% 100.0%
Net Revenues by Customer
Concentration
(As % of Total Net Revenue) 2Q10 2Q09 1H10
Single largest 39.2% 36.0% 38.2%
Five largest 52.7% 59.4% 52.2%
Ten largest 60.2% 75.7% 61.4%
Net Revenues by Service Line by Quarter
1H09 2009 2008
(US Dollars in Thousands) 29,651 79,423 65,266
Enterprise application services 14,019 38,580 25,506
Financial industry IT services 43,670 118,003 90,772
Total net revenues
(As % of Total Net Revenue) 67.9% 67.3% 71.9%
Enterprise application services 32.1% 32.7% 28.1%
Financial industry IT services 100.0% 100.0% 100.0%
Total net revenues
Net Revenues by Service Line by latest 6 Quarter
3Q09 2Q09 1Q09
(US Dollars in Thousands) 23,507 15,301 14,350
Enterprise application services 10,636 7,847 6,172
Financial industry IT services 34,143 23,148 20,522
Total net revenues
(As % of Total Net Revenue) 68.8% 66.1% 69.9%
Enterprise application services 31.2% 33.9% 30.1%
Financial industry IT services 100.0% 100.0% 100.0%
Total net revenues
Net Revenues by Industry Verticals
1H09 2009 2008
(As % of Total Net Revenue) 33.5% 35.0% 30.2%
Financial services 19.5% 23.9% 18.0%
Resources and energy 12.0% 17.1% 15.1%
Manufacturing and automobile 16.5% 10.3% 14.7%
Technology 18.5% 13.7% 22.0%
Others 100.0% 100.0% 100.0%
Total
Net Revenues by Geographic Markets
1H09 2009 2008
(As % of Total Net Revenue) 87.8% 89.4% 85.0%
PRC and Taiwan 11.5% 9.9% 12.7%
Japan 0.7% 0.7% 2.3%
Others 100.0% 100.0% 100.0%
Total
Net Revenues by Customer Concentration
1H09 2009 2008
(As % of Total Net Revenue) 34.7% 31.6% 31.6%
Single largest 55.7% 49.0% 48.4%
Five largest 72.0% 63.0% 64.6%
Ten largest
Source: Camelot Information Systems Inc.
