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HiSoft Issues Corporate Deposit Account List and Cash Flow Statements

HiSoft Technology International Limited
2011-05-25 21:21 3187

Additional disclosures illustrate HiSoft's commitment to investor transparency, integrity and corporate governance


BEIJING, May 25, 2011 /PRNewswire-Asia-FirstCall/ -- HiSoft Technology International Limited, ("HiSoft" or the "Company") (NASDAQ: HSFT), a leading China-based provider of outsourced information technology and research and development services headquartered in Dalian, China, today issued an unaudited corporate deposit account list identifying each corporate cash account and the balance and location of each account. The Company also issued an unaudited quarterly cash flow statement disclosing the amount of cash used for operating, investing and financing activities.

"Given recent industry developments, investors may have general concerns regarding the financial integrity and corporate governance practices of Chinese companies listed in the United States," said HiSoft Chief Financial Officer Christine Lu-Wong. "In an effort to further instill investor confidence in our business and prove our dedication to transparency and financial integrity, we have decided to proactively issue additional cash-related disclosures. Going forward, we will continue to disclose our cash flow statement on a quarterly basis, as we position ourselves as a Company with a strong track record for performance, sound corporate governance and financial integrity."

HISOFT TECHNOLOGY INTERNATIONAL LIMITED

 		  

Corporate Deposit Account List

 		  

(in US dollars in thousands)

 		  

 
 
 
 		  

 		  

 

March 31, 2011(1)

 
 


December 31, 2010(2)

 		  

 

(Unaudited)

 
 
 		  

Cash in hand

 

$69

 
 

$59

 		  

Bank of America, South Carolina, United States

 

2,868

 
 

4,778

 		  

Bank of Beijing, Beijing, PRC

 

502

 
 

1,593

 		  

Bank of China, Chengdu, PRC

 

70

 
 

135

 		  

Bank of Communications, Dalian, PRC

 

13

 
 

58

 		  

Bank of Communications, Shanghai, PRC

 

-

 
 

240

 		  

Bank of East Asia, Offshore Accounts

 

6,215

 
 

-

 		  

Bank of East Asia, Beijing, PRC

 

15,103

 
 

9,925

 		  

Bank of Jiangsu, Wuxi, PRC

 

796

 
 

134

 		  

Bank of Tokyo-Mitsubishi UFJ, Tokyo, Japan

 

4,264

 
 

2,746

 		  

China Merchants Bank, Offshore Accounts

 

30,001

 
 

62,068

 		  

China Construction Bank, Dalian, PRC

 

2,318

 
 

1,458

 		  

China Merchants Bank, Beijing, PRC

 

3,531

 
 

9,879

 		  

China Merchants Bank, Dalian, PRC

 

49,612

 
 

50,000

 		  

China Merchants Bank, Guangzhou, PRC

 

12

 
 

208

 		  

China Merchants Bank, Shanghai, PRC

 

439

 
 

-

 		  

China Merchants Bank, Shenzhen, PRC

 

2,169

 
 

2,342

 		  

China Merchants Bank, Wuxi, PRC

 

3,874

 
 

4,405

 		  

China Minsheng Banking, Beijing, PRC

 

2,564

 
 

608

 		  

Citi Bank, Singapore

 

1,001

 
 

1,186

 		  

DBS Bank, Singapore

 

16

 
 

142

 		  

Industrial and Commercial Bank of China, Dalian, PRC

 

94

 
 

72

 		  

Shenzhen Development Bank, Dalian, PRC

 

242

 
 

242

 		  

Standard Chartered Bank, Hong Kong

 

1,168

 
 

14,839

 		  

Sumitomo Mitsui Banking Corporation, Tokyo, Japan

 

394

 
 

421

 		  

United Overseas Bank, Singapore

 

771

 
 

1,264

 		  

Wells Fargo Bank, Virginia, United States

 

138

 
 

1,091

 		  

Total

 

$128,244

 
 

$169,893

 		  

 		  

 
 
 
 		  

 
 
 
 		  

 (1) Amounts shown that are not held in U.S. dollars have been converted at the relevant exchange rates as of March 31, 2011.

 		  

 		  

 (2) Amounts shown that are not held in U.S. dollars have been converted at the relevant exchange rates as of December 31, 2010.

 		  
       




 		  

 		  

HISOFT TECHNOLOGY INTERNATIONAL LIMITED

 		  

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 		  

(in U.S. dollars in thousands)

 		  

 
 
 
 
 
 
 		  

 
 
 

Three-Month Periods Ended March 31,

 		  

 
 

2011

 
 
 

2010

 		  

Cash flows from operating activities:

 
 

(Unaudited)

 
 
 

(Unaudited)

 		  

 
 
 
 
 
 
 		  

 

Net income

 
 

2,817

 
 
 

2,967

 		  

 

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

 
 
 
 
 
 		  

 

     Provision for doubtful accounts

 
 

356

 
 
 

100

 		  

 

Loss on disposal of property, plant and equipment

 
 

32

 
 
 

340

 		  

 

Depreciation

 
 

918

 
 
 

753

 		  

 

Change in fair value of foreign-currency forward contract

 
 

(4)

 
 
 

(17)

 		  

 

Amortization of intangible assets

 
 

411

 
 
 

163

 		  

 

Interest expense (income)

 
 

64

 
 
 

(38)

 		  

 

Share-based compensation expenses

 
 

1,177

 
 
 

589

 		  

 

Changes in fair value of contingent consideration

 
 

350

 
 
 

144

 		  

 
 
 
 
 
 
 		  

 

Changes in operating assets and liabilities:

 
 
 
 
 
 		  

 

Accounts receivable

 
 

(1,243)

 
 
 

(3,532)

 		  

 

Other current assets

 
 

(1,095)

 
 
 

287

 		  

 

Other assets

 
 

(41)

 
 
 

(427)

 		  

 

Accounts payable

 
 

134

 
 
 

(415)

 		  

 

Other liabilities

 
 

(3,653)

 
 
 

556

 		  

 
 
 
 
 
 
 		  

Net cash provided by operating activities

 
 

223

 
 
 

1,470

 		  

 
 
 
 
 
 
 		  

Cash flows from investing activities:

 
 
 
 
 
 		  

 

Purchase of property, plant and equipment

 
 

(1,491)

 
 
 

(918)

 		  

 

Restricted cash

 
 

(15)

 
 
 

(19)

 		  

 

Cash received from non-controlling

 
 

908

 
 
 

-

 		  

 

Payment for business acquisition

 
 

(2,200)

 
 
 

(2,430)

 		  

 
 
 
 
 
 
 		  

Net cash used in investing activities

 

$

 

(2,798)

 
 

$

 

(3,367)

 		  

 		  

 		  
             




 		  

HISOFT TECHNOLOGY INTERNATIONAL LIMITED

 		  

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - continued

 		  

(in U.S. dollars in thousands)

 		  

 
 

Three-Month Periods Ended March 31,

 		  

 

2011

 
 

2010

 		  

 		  

 
 

          (Unaudited)

 

 (Unaudited)

 		  

 
 
 
 
 
 
 		  

Cash flows from financing activities:

 
 
 
 
 
 		  

 

Repayment of bank loan

 

$

 

(40,064)

 
 

$

 

-

 		  

 

Cash received from share subscription receivables

 
 

-

 
 
 

1

 		  

 

Proceeds from issuance of common share under employee option plan

 
 

-

 
 
 

511

 		  

 

Prepayment for initial public offering expenses

 
 

-

 
 
 

(590)

 		  

 

Payment on capital lease obligations

 
 

-

 
 
 

(9)

 		  

 
 
 
 
 
 
 		  

Net cash used in financing activities

 
 

(40,064)

 
 
 

(87)

 		  

 
 
 
 
 
 
 		  

Effect of exchange rate changes

 
 

990

 
 
 

5

 		  

 
 
 
 
 
 
 		  

Net decrease in cash and cash equivalents

 
 

(41,649)

 
 
 

(1,979)

 		  

Cash and cash equivalents at beginning of period

 
 

169,893

 
 
 

54,842

 		  

 
 
 
 
 
 
 		  

Cash and cash equivalents at end of period

 

$

 

128,244

 
 

$

 

52,863

 		  

 		  
               


About HiSoft Technology International Limited

HiSoft Technology International Limited (NASDAQ: HSFT) is a leading China-based provider of outsourced information technology and research and development services headquartered in Dalian, China. HiSoft provides its services to leading companies around the world through a combination of onshore and offshore delivery capabilities. HiSoft leverages its skilled technology specialists and client-centric delivery centers to offer customers reliable and high-quality technology solutions. For more information about HiSoft, please visit http://www.hisoft.com    

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of 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 can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond HiSoft's control, which may cause HiSoft's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in HiSoft's filings with the U.S. Securities and Exchange Commission. HiSoft 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.


 		  

For investor and media inquiries please contact:

 		  

 		  

In China:

 		  

 		  

Mr. Ross Warner

 		  

HiSoft Technology International Limited

 		  

Tel: +86-10-5987-5865

 		  

Email: investor_relations@hisoft.com

 		  

 		  

Mr. Agustin Bautista

 		  

Ogilvy Financial, Beijing

 		  

Tel: +86-10-8520-6166

 		  

Email: hsft@ogilvy.com

 		  

 		  

In the U.S.:

 		  

 		  

Ms. Jessica Barist Cohen

 		  

Ogilvy Financial, New York

 		  

Phone: +1-646-460-9989

 		  

Email: hsft@ogilvy.com

 		  

 
 
Source: HiSoft Technology International Limited
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