BEIJING, May 27, 2011 /PRNewswire-Asia/ -- Camelot Information Systems Inc. ("Camelot" or the "Company") (NYSE: CIS), a leading domestic provider of enterprise application services and financial industry information technology ("IT") services in China, today provided supplementary information regarding the Company's first-quarter financial statements, including unaudited cash-flow statements for the first quarters of 2011 and 2010. The company also provided an unaudited list that identifies the cash balance and location of each of its bank accounts.
The large number of accounts and the relatively low balances in China and Taiwan reflects the practice of some commercial banks requiring Camelot, as their IT service provider, to maintain accounts with them in order to demonstrate our commitment to the business relationship and facilitate the payment of invoices.
In addition, on a Form 6-K filed with the Securities and Exchange Commission, Camelot has provided a copy of its bank statement from Citibank, N.A. in San Francisco, California (with the account numbers obscured for security reasons), which accounts for $86.7 million of the total of $118.9 million in cash and equivalents as of March 31, 2010.
"In an environment where the credibility of financial statements of Chinese companies is being questioned, we are taking the opportunity to demonstrate Camelot's commitment to transparency and financial integrity by providing investors with additional financial disclosures," said Mr. Simon Ma, Camelot's Chairman and CEO. "With the vast majority of our cash held in accounts at major financial institutions located in the United States and Greater China, investors can have confidence in the strength of our balance sheet and our ability to take advantage of the substantial growth opportunities in our sector. It is our intention to provide a cash flow statement as part of future quarterly financial reports, as we position Camelot as a leader in financial transparency and sound corporate governance."
ABOUT CAMELOT INFORMATION SYSTEMS INC.
Camelot is a leading domestic provider of enterprise application services and financial industry information technology ("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 www.camelotchina.com.
SAFE HARBOR
This press release contains statements that may constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks and uncertainties that could cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these risks is included in Camelot's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1, as amended from time to time. Camelot 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.
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Company Contacts: Camelot Information Systems Inc. Mr. Gordon Lau, Chief Financial Officer Tel: +86 (10) 8201 9008 E-mail: investors@camelotchina.com Ms. Jojo Guo, Investor Relations Manager Tel: +1 (646) 371-6533 E-mail: investors@camelotchina.com |
Investor Relations Contacts: CCG Investor Relations Mr. Crocker Coulson, President Tel: +1 (646) 213-1915 E-mail: crocker.coulson@ccgir.com Mr. John Harmon, CFA, Sr. Account Manager Tel: +86 (10) 6561 6886 x807 (Beijing) E-mail: john.harmon@ccgir.com |
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– financial tables follow –
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CAMELOT INFORMATION SYSTEMS INC. |
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Condensed Consolidated Statements of Cash Flows (Unaudited) |
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(US Dollars in thousands) |
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Three-Month Periods Ended March 31, |
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2011 |
2010 |
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Cash flow from operating activities: |
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Net income |
$2,288 |
$1,047 |
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Adjustments to reconcile net income to net cash provided by(used in) operating activities: |
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Depreciation of property and equipment |
272 |
223 |
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Amortization of intangible assets |
1,545 |
1,733 |
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Deferred income taxes |
(160) |
(156) |
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Share-based compensation |
653 |
411 |
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Provision of bad debts |
- |
15 |
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Gains on disposal of property and equipment |
9 |
(1) |
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Change in fair value of contingent consideration for acquisition |
607 |
306 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
(2,519) |
(7,753) |
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Other assets |
(2,149) |
(278) |
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Accounts payable |
(2,366) |
(327) |
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Other liabilities |
(6,001) |
(2,187) |
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Net cash provided (used in) by operating activities |
(7,821) |
(6,967) |
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Cash flows from investing activities: |
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Term deposits |
(38) |
280 |
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Restricted cash |
(7,824) |
(23) |
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Proceeds from disposal of property and equipment |
13 |
(491) |
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Purchase of property and equipment |
(246) |
16 |
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Purchase of intangible assets and other assets |
- |
(63) |
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Repayment of loan to unrelated parties |
- |
29 |
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Purchase of businesses, net of cash acquired |
(11,430) |
(2,461) |
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Net cash provided (used in) by investing activities |
(19,525) |
(2,713) |
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Cash flows from financing activities: |
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Proceeds from bank borrowing |
7,494 |
146 |
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Repayment of bank borrowing |
(2,090) |
(1,079) |
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Payment of deferred consideration for acquisition of Yinfeng |
- |
(4,249) |
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Payment of professional fee related to initial public offering |
(328) |
(370) |
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Others |
666 |
- |
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Net cash provided by (used in) financing activities |
5,742 |
(5,552) |
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Effect of foreign exchange rate changes |
183 |
23 |
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Net increase (decrease) in cash and cash equivalents |
(21,421) |
(15,209) |
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Cash and cash equivalents, beginning of year |
140,356 |
33,820 |
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Cash and cash equivalents, end of year |
$118,935 |
$18,611 |
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CAMELOT INFORMATION SYSTEMS INC. |
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Cash and Cash Equivalents List (Unaudited) |
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(US Dollars in thousands) |
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March 31, 2011(1) |
December 31, 2010(2) |
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Bank Accounts in the United States |
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Citibank, N.A, San Francisco, California |
$86,706 |
$94,150 |
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Citibank, N.A, San Francisco, California |
163 |
6,553 |
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86,869 |
100,703 |
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Bank Accounts in China |
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Agricultural Bank of China, Beijing |
2,011 |
1,993 |
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Bank of Beijing, Beijing |
280 |
776 |
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Bank of China, Beijing |
543 |
296 |
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Bank of China, Kunshan |
23 |
3,046 |
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Bank of Communications, Kunshan |
9 |
9 |
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Bank of Communications, Shanghai |
269 |
269 |
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Bank of Nanjing, Nanjing |
23 |
20 |
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Beijing Rural Commercial Bank, Beijing |
68 |
15 |
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China Bohai Bank, Tianjin |
17 |
16 |
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China Citic Bank, Dalian |
3,087 |
2,135 |
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China Construction Bank, Beijing |
220 |
132 |
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China Construction Bank, Dalian |
897 |
1,604 |
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China Construction Bank, Kunshan |
1 |
- |
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China Construction Bank, Shanghai |
1,117 |
- |
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China Construction Bank, Xiamen |
54 |
31 |
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China Guangfa Bank, Guangzhou |
4 |
2 |
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China Merchants Bank, Beijing |
41 |
546 |
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China Merchants Bank, Shanghai |
85 |
69 |
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China Minsheng Banking Corp., Beijing |
2,707 |
7,118 |
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China Minsheng Banking Corp., Dalian |
2,446 |
2,445 |
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Huaxia Bank, Beijing |
248 |
257 |
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Huaxia Bank, Nanjing |
165 |
108 |
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Kunshan Rural Commercial Bank, Kunshan |
1 |
127 |
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Shanghai Pudong Development Bank, Beijing |
1,931 |
828 |
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Shanghai Pudong Development Bank, Hangzhou |
1 |
6 |
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Shanghai Pudong Development Bank, Jiaxing |
1,564 |
1,719 |
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Shanghai Pudong Development Bank, Shanghai |
374 |
232 |
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The Industrial and Commercial Bank of China, Beijing |
825 |
761 |
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The Industrial and Commercial Bank of China, Kunshan |
4,059 |
330 |
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The Industrial and Commercial Bank of China, Shanghai |
903 |
708 |
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The Industrial and Commercial Bank of China, Xi'an |
8 |
- |
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The Industrial and Commercial Bank of China, Zhuhai |
2,529 |
5,996 |
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26,510 |
31,594 |
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Bank Accounts in Taiwan |
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Bank of Panhsin |
1 |
31 |
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Bank of Taiwan |
14 |
39 |
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Bank SinoPac |
4 |
18 |
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Cathay United Bank |
858 |
1,274 |
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Chang Hwa Bank |
4 |
5 |
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China trust Commercial Bank |
1,421 |
1,790 |
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Citi Bank Taiwan |
1 |
1 |
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Cosmos Bank |
- |
64 |
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E.SUN Commercial Bank |
90 |
82 |
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Entie Commercial Bank |
- |
5 |
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First Commercial Bank |
22 |
20 |
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Hua Nan Bank |
32 |
537 |
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Jih Sun International Bank Limited |
29 |
14 |
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Mega International Commercial Bank |
5 |
24 |
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Shin Kong Bank |
765 |
1,294 |
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Ta Chong Bank |
138 |
- |
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Taichung Commercial Bank |
2 |
20 |
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Taipei Fubon Bank |
23 |
53 |
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Taishin Bank |
56 |
79 |
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Taiwan Cooperative Bank |
29 |
37 |
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The Land Bank of Taiwan |
422 |
79 |
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Yuanta Commercial Bank |
14 |
260 |
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3,930 |
5,726 |
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Bank Accounts in Hong Kong |
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Standard Chartered Bank (Hong Kong) Limited |
42 |
302 |
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The Hong Kong and Shanghai Banking Corporation |
17 |
2 |
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59 |
304 |
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Bank Accounts in Japan |
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Bank of Tokyo-Mitsubishi UFJ, Tokyo |
162 |
171 |
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Mizuho Corporate Bank, Ltd., Tokyo |
1,287 |
1,771 |
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1,449 |
1,942 |
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Cash on hand |
118 |
87 |
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Total |
$118,935 |
$140,356 |
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Notes: |
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1. Amounts not held in U.S. dollars have been translated using the relevant exchange rates as of March 31, 2011. |
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2. Amounts not held in U.S. dollars have been translated using the relevant exchange rates as of December 31, 2011. |
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