Hollysys Automation Technologies Reports Unaudited Financial Results for the First Quarter Ended September 30, 2020


First Quarter of Fiscal Year 2021 Financial Highlights

  • Non-GAAP net income attributable to Hollysys was $20.8 million, a decrease of 30.2% compared to the comparable prior year period.

  • Total revenues were $129.5 million, an increase of 5.1% compared to the comparable prior year period.

  • Non-GAAP gross margin was at 33.7%, compared to 37.7% for the comparable prior year period.

  • Non-GAAP diluted EPS was $0.34, a decrease of 30.6% compared to the comparable prior year period.

  • Net cash provided by operating activities was $21.6 million for the current quarter.

  • DSO of 185 days, compared to 204 days for the comparable prior year period.

  • Inventory turnover days of 58 days, compared to 56 days for the comparable prior year period.

BEIJING, Nov. 12, 2020 /PRNewswire/ — Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) (“Hollysys” or the “Company”), a leading provider of automation and control technologies and applications in China, today announced its unaudited financial results for the first quarter of fiscal year 2021 ended September 30, 2020 (see attached tables). The management of Hollysys, stated:

Industrial Automation (“IA”) business finished the quarter with revenue and contract at $81.9 million and $107.8 million, representing 26.8% and 28.4% YOY growth, respectively.

  • In power sector, we continued our effort in strengthening our market position in high-end coal fire market (600MW and plus power unit). Meanwhile, with respect to our current client base in this sector, we are actively responding to various regular and value-added service demand covering old system replacement, system upgrade, part component sales and annual maintenance, etc.

  • In chemical and petro-chemical sector, contract growth remains healthy. We continued our effort in key projects winning, key client cooperation, key marketing events and development and demonstration of solution capability to penetrate the market and build our reputation.

    Sector highlights of the past quarter include:

– Winning the bidding of DCS+ESD (emergency shutdown device) + AMS (asset management system) +F&G (fire and gas) integrated solution for two offshore oil platforms. It is the 8th oil platform solution that the Company has won since the beginning of the calendar year, marking a remarkable progress for our exploration in the oil and gas industry.

– Signing a CCS (Coordination Control System) contract with a client on its 400,000 tons/year tert-butyl alcohol and 200,000 tons/year MMA (methyl methacrylate) projects, marking a breakthrough as it is the Company’s first contract in MMA.

– Signing a DCS + SIS + GDS + MES + OTS + AMS + information security integrated solution contract with a client on its 100,000 tons polycarbonate project. The DCS control points for the project amount to approximately 20,000, making it the largest project ever for the Company in similar craft.

  • In food & beverage and pharmaceutical sector, we continue to see healthy growth in contract. With our core control solution capability and inclusion of engineering design capability, we are building our EPC (engineering design + procurement + construction) capability so as to provide more comprehensive solution to our clients. Periodic progress was made in such model as we signed our first workshop-level EPC contract with a client for its 7-ACA (7-aminocephalosporanic acid) refining project, which is expected to lay foundation for our further pursuit of larger scale EPC project in the future.

  • In smart factory business, we continue to actively engage the potential clients through various marketing events, to stay close for in-depth grasp of market demand, and to develop and improve our solution for real value creation in economic benefit and operation safety. Highlights of the past quarter include:

– Signing a contract with a new client from the thermal-power sector to provide a total solution with control-level and management-level data integration that covers comprehensive function modules including control optimization, smart diagnosis, equipment management, decision making and operation management, etc. We expect such project to become a key demonstration of solution for the thermal-power sector.

– Signing a contract with a client from the coal-fire sector for its new 2*660MW power plant. Contract covers a similar total solution at control and management level, and marks a significant breakthrough in our smart factory solution for high-end coal-fire market.

– Signing a contract with an existing client from the petro-chemical sector to provide management-level solution based on our industrial internet platform.

  • Aftersales business of IA is keeping the healthy pace. We continued to engage our valuable client base and respond with both regular and value-adding initiatives covering old system upgrade and replacement, part component sales, annual maintenance, control optimization, data integration and energy management, etc.

  • Under our big automation initiatives, we continued to improve our capability for wider range of solution covering entire life cycle. By end of September, we have put into operation our in-house instrument production line, with which we will be capable of manufacturing certain types of instruments contained in our total control solution. Such is expected to be a valuable addition to our project delivery, market opportunities and operation.

Rail business finished the quarter with revenue and contract at $28.7 million and $24.2 million, recording 35.6% YOY decrease and 15.0% YOY growth, respectively.

  • In high-speed rail (“HSR”) sector, we continued our delivery of on-ground solution along with the rail-road construction progress. Periodic progress was achieved for the smart solution initiatives for the sector, and we have completed our top-level design of the smart maintenance solution. Meanwhile, bidding from the client was seeing its gradual recovery in the post-pandemic period, both for on-ground and on-board equipment. Highlights of the quarter include:

– Winning the bidding of 140 sets (out of the total package of 274 sets) of ATP for C2 (250km) China Standard High-speed train in August.

  • In subway sector, our cloud-based SCADA project for Shenzhen Subway Line 6 was fully delivered, which was the second cloud-based SCADA project of the Company and represents our constant effort in innovation for continued value creation for our clients. In delivery, our enhancement in supply chain management and engineering standardization has contributed to improved quality and efficiency of project execution.

  • In aftersales business, we continued to strengthen local service network, to expand service solution and to develop technology-and-service-centered service for better differentiation. In HSR sector, we continued to respond to regular services including advanced maintenance, system and software upgrade and part component sales, as well as total replacement. We continued to act as the service provider to Hong KongShenzhen high-speed rail, with our service quality being highly recognized. In subway sector, we continued to explore potentials from the current client base and signed contracts covering system upgrade, maintenance and product sales.

  • Under our big transportation initiatives, the Company has established the smart highway solution and was actively involved in marketing events for new contracts breakthrough in new business. Highlight for the quarter includes:

– Signing a breakthrough contract of smart traffic meteorology solution for a section of the highway connecting Sichuan and Yunnan province. The data-driven solution targets highway administration as the intended clients and through collection and processing of meteorological, geographical and traffic data, advices the highway administration on more effective decision making in highway management, in particular under extreme weather condition.

Mechanical and Electrical Solutions (“M&E”) business finished the quarter with revenue and contract at $18.8 million and $12.3 million, recording 34.4% increase and 63.4% YOY decrease respectively.

COVID-19 remains a challenge to M&E and overseas business. We will keep monitoring the impact on this sector and risk control remains to be the key focus.

Fiscal Quarter Ended September 30, 2020 Unaudited Financial Results Summary

(In USD thousands, except for number of shares and per share data)

Three months ended

Sep 30, 2020

Sep 30, 2019

%
Change

Revenues

$

129,468

123,230

5.1%

Integrated solutions contracts revenue

$

105,706

104,466

1.2%

Products sales

$

6,569

6,123

7.3%

Service rendered

$

17,193

12,641

36.0%

Cost of revenues

$

85,891

76,771

11.9%

Gross profit

$

43,577

46,459

(6.2)%

Total operating expenses

$

22,558

23,291

(3.1)%

Selling

$

8,176

7,277

12.4%

General and administrative

$

10,179

10,592

(3.9)%

Research and development

$

9,981

8,942

11.6%

VAT refunds and government subsidies

$

(5,778)

(3,520)

64.1%

Income from operations

$

21,019

23,168

(9.3)%

Other income, net

$

1,229

2,025

(39.3)%

Foreign exchange (loss) gain

$

(2,323)

604

(484.6)%

Gains on disposal of an investment in an equity investee

$

5,763

(100.0)%

Share of net income of equity investees

$

1,891

1,541

22.7%

Interest income

$

3,798

3,029

25.4%

Interest expenses

$

(137)

(113)

21.2%

Income tax expenses

$

4,760

6,209

(23.3)%

Net (losses) income attributable to non-controlling interests

$

(80)

26

(407.7)%

Non-GAAP net income attributable to Hollysys Automation
Technologies Ltd.

$

20,797

29,782

(30.2)%

Non-GAAP basic EPS

$

0.34

0.49

(30.6)%

Non-GAAP diluted EPS

$

0.34

0.49

(30.6)%

$

Share-based compensation expenses

175

26

573.1%

Amortization of acquired intangible assets

$

76

75

1.3%

GAAP Net income attributable to Hollysys Automation Technologies
Ltd.

$

20,546

29,681

(30.8)%

GAAP basic EPS

$

0.34

0.49

(30.6)%

GAAP diluted EPS

$

0.34

0.49

(30.6)%

Basic weighted average common shares outstanding

60,552,099

60,470,611

0.1%

Diluted weighted average common shares outstanding

60,552,099

60,483,884

0.1%

Operational Results Analysis for the First Quarter Ended September 30, 2020

Comparing to the first quarter of the prior fiscal year, the total revenues for the three months ended September 30, 2020 increased from $123.2 million to $129.5 million, representing an increase of 5.1%. Broken down by the revenue types, integrated contracts revenue increased by 1.2% to $105.7 million, products sales revenue increased by 7.3% to $6.6 million, and services revenue increased by 36.0% to $17.2 million.

The Company’s total revenues can also be presented in segments as shown in the following chart:

(In USD thousands)

Three months ended Sep 30,

2020

2019

$

% to Total
Revenue

$

% to Total
Revenue

Industrial Automation

81,931

63.2%

64,637

52.4%

Rail Transportation Automation

28,696

22.2%

44,576

36.2%

Mechanical and Electrical Solution

18,841

14.6%

14,017

11.4%

Total

129,468

100.0%

123,230

100.0%

Overall gross margin excluding non-cash amortization of acquired intangibles (non-GAAP gross margin) was 33.7% for the three months ended September 30, 2020, as compared to 37.7% for the same period of the prior year. The non-GAAP gross margin for integrated contracts, product sales, and services rendered were 25.3%, 73.7% and 70.0% for the three months ended September 30, 2020, as compared to 32.6%, 79.9% and 59.5% for the same period of the prior year, respectively. The gross margin fluctuation was mainly due to the different revenue mix with different margins. The GAAP overall gross margin which includes non-cash amortization of acquired intangibles was 33.6% for the three months ended September 30, 2020, as compared to 37.6% for the same period of the prior year. The GAAP gross margin for integrated contracts, product sales, and service rendered was 25.2%, 73.7% and 70.0% for the three months ended September 30, 2020, as compared to 32.5%, 79.9% and 59.5% for the same period of the prior year, respectively.

Selling expenses were $8.2 million for the three months ended September 30, 2020, representing an increase of $0.9 million or 12.4% compared to $7.3 million for the same quarter of the prior year. Presented as a percentage of total revenues, selling expenses were 6.3% and 5.9% for the three months ended September 30, 2020, and 2019, respectively.

General and administrative expenses, excluding non-cash share-based compensation expenses (non-GAAP G&A expenses), were $10.2 million for the quarter ended September 30, 2020, representing a decrease of $0.4 million or 3.9% compared to $10.6 million for the same quarter of the prior year. Presented as a percentage of total revenues, non-GAAP G&A expenses were 7.9% and 8.6% for quarters ended September 30, 2020 and 2019, respectively. The GAAP G&A expenses which include the non-cash share-based compensation expenses were $10.4 million and $10.6 million for the three months ended September 30, 2020 and 2019, respectively.

Research and development expenses were $10.0 million for the three months ended September 30, 2020, representing an increase of $1.0 million or 11.6% compared to $8.9 million for the same quarter of the prior year. Presented as a percentage of total revenues, R&D expenses were 7.7% and 7.3% for the quarter ended September 30, 2020 and 2019, respectively.

The VAT refunds and government subsidies were $5.8 million for three months ended September 30, 2020, as compared to $3.5 million for the same period in the prior year, representing a $2.3 million or 64.1% increase, which was primarily due to increase of the VAT refunds.

The income tax expenses and the effective tax rate were $4.8 million and 18.9% for the three months ended September 30, 2020, as compared to $6.2 million and 17.3% for comparable prior year period. The effective tax rate fluctuation was mainly due to the different pre-tax income mix with different tax rates, as the Company’s subsidiaries are subject to different tax rates in various jurisdictions.

The non-GAAP net income attributable to Hollysys, which excludes the non-cash share-based compensation expenses calculated based on the grant-date fair value of shares or options granted, amortization of acquired intangible assets, and fair value adjustments of a bifurcated derivative, was $20.8 million or $0.34 per diluted share based on 60.6 million diluted weighted average ordinary shares outstanding for the three months ended September 30, 2020. This represents a 30.2% decrease over $29.8 million or $0.49 per share based on 60.5 million diluted weighted average ordinary shares outstanding reported in the comparable prior year period. On a GAAP basis, net income attributable to Hollysys was $20.5 million or $0.34 per diluted share representing a decrease of 30.8% over $29.7 million or $0.49 per diluted share reported in the comparable prior year period.

Contracts and Backlog Highlights

Hollysys achieved $144.3 million of new contracts for the three months ended September 30, 2020. The backlog as of September 30, 2020 was $596.1 million. The detailed breakdown of new contracts and backlog by segments is shown below:

(In USD thousands)

New contracts achieved

Backlog

for the three months

ended Sep 30, 2020

as of Sep 30, 2020

$

% to Total
Contract

$

% to Total
Backlog

Industrial Automation

107,806

74.7%

252,299

42.3%

Rail Transportation

24,167

16.8%

254,833

42.7%

Mechanical and Electrical Solutions

12,304

8.5%

89,005

14.9%

Total

144,277

100.0%

596,137

100.0%

Cash Flow Highlights

For the three months ended September 30, 2020, the total net cash inflow was $34.9 million. The net cash provided by operating activities was $21.6 million. The net cash provided by investing activities was $2.6 million and mainly consisted of $114.6 million of matured time deposits, which were partially offset by $108.8 million of time deposits placed with banks. The net cash used in financing activities was $0.2 million.

Balance Sheet Highlights

The total amount of cash and cash equivalents were $321.6 million, $288.8 million, and $340.0 million as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

For the three months ended September 30, 2020, DSO was 185 days, as compared to 204 days for the comparable prior year period and 167 days for the last quarter; and inventory turnover was 58 days, as compared to 56 days for the comparable prior year period and 66 days for the last quarter.

Conference Call

The Company will host a conference call at 8:00 pm November 12, 2020 U.S. Eastern Time / 9:00 am November 13, 2020 Beijing Time, to discuss the financial results for fiscal year 2021 first quarter ended September 30, 2020 and business outlook.

Joining the Conference Call:

  1. Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID.

  2. In the 10 minutes prior to the call start time, you will need to use the conference access information provided in the email received at the point of registering.

Note: Due to regional restrictions some participants may receive operator assistance when joining this conference call and will not be automatically connected.

Helpful keypad commands:
*0 – Operator assistance
*6 – Self mute/unmute

Direct Event online registration: http://apac.directeventreg.com/registration/event/3446698. Please use Conference ID 3446698 for entry if the link fails to lead directly to the registration page.

SAFE HARBOUR:

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements,” including statements regarding: the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys’ management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For further information, please contact:

Hollysys Automation Technologies Ltd.
www.hollysys.com
+8610-58981386
investors@hollysys.com

HOLLYSYS AUTOMATION TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In USD thousands except for number of shares and per share data)

Three months ended

Sep 30,

2020

2019

(Unaudited)

(Unaudited)

Net revenues

Integrated solutions contracts revenue

$

105,706

$

104,466

Products sales

6,569

6,123

Revenue from services

17,193

12,641

Total net revenues

129,468

123,230

Costs of integrated solutions contracts

79,081

70,500

Cost of products sold

1,729

1,231

Costs of services rendered

5,157

5,115

Gross profit

43,501

46,384

Operating expenses

Selling

8,176

7,277

General and administrative

10,354

10,618

Research and development

9,981

8,942

VAT refunds and government subsidies

(5,778)

(3,520)

Total operating expenses

22,733

23,317

Income from operations

20,768

23,067

Other income, net

1,229

2,025

Foreign exchange (loss) gain

(2,323)

604

Gains on disposal of investments in an equity investee

5,763

Share of net income of equity investees

1,891

1,541

Interest income

3,798

3,029

Interest expenses

(137)

(113)

Income before income taxes

25,226

35,916

Income taxes expenses

4,760

6,209

Net income

20,466

29,707

Less: Net (losses) income attributable to non-controlling interests

(80)

26

Net income attributable to Hollysys Automation Technologies Ltd.

$

20,546

$

29,681

Other comprehensive income, net of tax of nil

Translation adjustments

38,950

(34,174)

Comprehensive income (loss)

59,416

(4,467)

Less: Comprehensive income (loss) attributable to non-controlling interests

80

(25)

Comprehensive income (loss) attributable to Hollysys Automation
Technologies Ltd.

$

59,336

$

(4,442)

Net income per share:

Basic

0.34

0.49

Diluted

0.34

0.49

Shares used in income per share computation:

Basic

60,552,099

60,470,611

Diluted

60,552,099

60,483,884

HOLLYSYS AUTOMATION TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

(In USD thousands except for number of shares and per share data)

Sep 30,

Jun 30,

2020

2020

(Unaudited)

(audited)

ASSETS

Current assets

Cash and cash equivalents

$

321,641

$

288,782

Time deposits with maturities over three months

330,432

324,949

Restricted cash

11,827

8,663

Accounts receivable, net of allowance for doubtful accounts of $54,069 and
$41,618 as of September 30, 2020 and June 30, 2020, respectively

268,270

242,449

Costs and estimated earnings in excess of billings, net of allowance for doubtful
accounts of $8,185 and $6,150 as of September 30, 2020 and June 30, 2020,
respectively

189,834

186,879

Accounts receivable retention

5,227

6,088

Other receivables, net of allowance for doubtful accounts of $6,382 and $6,224 as
of September 30, 2020 and June 30, 2020, respectively

28,408

28,257

Advances to suppliers

18,614

17,255

Amounts due from related parties

22,222

21,444

Inventories

56,805

48,210

Prepaid expenses

654

648

Income tax recoverable

87

870

Total current assets

1,254,021

1,174,494

Non-current assets

Restricted cash

20,558

21,652

Costs and estimated earnings in excess of billings

1,771

2,309

Accounts receivable retention

5,559

4,717

Prepaid expenses

8

6

Property, plant and equipment, net

84,261

78,050

Prepaid land leases

16,168

15,742

Intangible assets, net

1,665

1,713

Investments in equity investees

45,814

41,133

Investments securities

4,816

4,640

Goodwill

1,516

1,460

Deferred tax assets

10,738

8,909

Operating lease right-of-use assets

6,496

6,010

Total non-current assets

199,370

186,341

Total assets

1,453,391

1,360,835

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Current portion of long-term loans

334

320

Accounts payable

129,336

117,460

Construction cost payable

1,762

2,350.00

Deferred revenue

161,692

139,242

Accrued payroll and related expenses

21,766

17,245

Income tax payable

7,021

3,142

Warranty liabilities

6,074

6,604

Other tax payables

4,129

3,279

Accrued liabilities

36,738

31,595

Amounts due to related parties

3,394

3,576

Operating lease liabilities

2,211

2,489

Total current liabilities

374,457

327,302

Non-current liabilities

Accrued liabilities

3,000

5,635

Long-term loans

15,885

15,780

Accounts payable

3,221

2,530

Deferred tax liabilities

14,307

13,940

Warranty liabilities

1,847

3,460

Operating lease liabilities

3,901

3,302

Total non-current liabilities

42,161

44,647

Total liabilities

416,618

371,949

Commitments and contingencies

Stockholders’ equity:

Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized;
60,537,099 shares issued and outstanding as of September 30, 2020 and June
30, 2020

61

61

Additional paid-in capital

224,218

224,043

Statutory reserves

49,423

49,423

Retained earnings*

783,315

774,473

Accumulated other comprehensive income

(24,728)

(63,517)

Total Hollysys Automation Technologies Ltd. stockholder’s equity

1,032,289

984,483

Non-controlling interests

4,484

4,403

Total equity

1,036,773

988,886

Total liabilities and equity

$

1,453,391

$

1,360,835

* The adoption of ASC 326 started in July 1st had a one-off effect on the beginning of balance sheet accounts.

HOLLYSYS AUTOMATION TECHNOLOGIES LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In USD thousands).

Three months ended

Sep 30, 2020

(Unaudited)

Cash flows from operating activities:

Net income

$

20,466

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of property, plant and equipment

2,548

Amortization of prepaid land leases

101

Amortization of intangible assets

76

Allowance for doubtful accounts

952

Gains on disposal of long-lived assets

(11)

Share of net income of equity investees

(1,891)

Share-based compensation expenses

175

Deferred income tax benefit

(1,363)

Changes in operating assets and liabilities:

Accounts receivable and retention

(25,949)

Costs and estimated earnings in excess of billings

4,397

Inventories

(6,640)

Advances to suppliers

(702)

Other receivables

621

Due from related parties

(1,148)

Accounts payable

7,901

Deferred revenue

16,963

Accruals and other payables

154

Due to related parties

(182)

Income tax payable

4,499

Other tax payables

713

Operating lease right-of-use assets

(305)

Operating lease liabilities

222

Net cash provided by operating activities

21,597

Cash flows from investing activities:

Time deposits placed with banks

(108,757)

Purchases of property, plant and equipment

(3,354)

Proceeds from disposal of property, plant and equipment

65

Maturity of time deposits

114,597

Net cash provided by investing activities

2,551

Cash flows from financing activities:

Proceeds from long-term bank loans

37

Repayments of long-term bank loans

(194)

Net cash used in financing activities

(157)

Effect of foreign exchange rate changes

10,938

Net increase in cash, cash equivalents and restricted cash

$

34,929

Cash, cash equivalents and restricted cash, beginning of period

$

319,097

Cash, cash equivalents and restricted cash, end of period

354,026

Non-GAAP Measures

In evaluating our results, the non-GAAP measures of “Non-GAAP cost of integrated contracts”, “Non-GAAP general and administrative expenses”, “Non-GAAP other income (expenses), net”, “Non-GAAP net income attributable to Hollysys Automation Technologies Ltd. stockholders”, “Non-GAAP basic earnings per share”, and “Non-GAAP diluted earnings per share” serve as additional indicators of our operating performance and not as a replacement for other measures in accordance with U.S. GAAP. We believe these non-GAAP measures are useful to investors, as they exclude the non-cash share-based compensation expenses, which is calculated based on the number of shares or options granted and the fair value as of the grant date, amortization of acquired intangible assets, and fair value adjustments of a bifurcated derivative. They will not result in any cash inflows or outflows. We believe that using non-GAAP measures help our shareholders to have a better understanding of our operating results and growth prospects. In addition, given the business nature of the Company, it has been a common practice for investors to use such non-GAAP measures to evaluate the Company.

The following table provides a reconciliation of the non-GAAP measures with the most directly comparable U.S. GAAP measures for the periods indicated:

(In USD thousands, except for number of shares and per share data)

Three months ended

Sep 30,

2020

2019

(Unaudited)

(Unaudited)

Cost of integrated solutions contracts

$

79,081

$

70,500

Less: Amortization of intangible assets

76

75

Non-GAAP cost of integrated solutions contracts

$

79,005

$

70,425

General and administrative expenses

$

10,354

$

10,618

Less: Share-based compensation expenses

175

26

Non-GAAP general and administrative expenses

$

10,179

$

10,592

Net income attributable to Hollysys Automation Technologies Ltd.

$

20,546

$

29,681

Add:

Share-based compensation expenses

175

26

Amortization of intangible assets

76

75

Non-GAAP net income attributable to Hollysys Automation
Technologies Ltd.

$

20,797

$

29,782

Weighted average number of basic ordinary shares

60,552,099

60,470,611

Weighted average number of diluted ordinary shares

60,552,099

60,483,884

Non-GAAP basic earnings per share

$

0.34

$

0.49

Non-GAAP diluted earnings per share

$

0.34

$

0.49

Cision
Cision

View original content:http://www.prnewswire.com/news-releases/hollysys-automation-technologies-reports-unaudited-financial-results-for-the-first-quarter-ended-september-30-2020-301171659.html

SOURCE Hollysys Automation Technologies Ltd.



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