BEIJING, May 10, 2012 /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 announced its
unaudited financial results for the first quarter of 2012 ended
March 31, 2012.
Key Highlights
First Quarter 2012 as compared to First Quarter
2011
- Net revenues were US$65.5
million, up 47.8%
- Gross profit was US$22.9 million,
up 62.1%
- Diluted net income per ADS(1) was US$0.19, compared to US$0.09
- Non-GAAP(2) diluted net income per ADS was US$0.27, compared to US$0.15
- Total employees as of March 31,
2012 was 7,490, compared to 5,946
(1) Each American
depositary share ("ADS") represents 19 common shares.
|
(2) Non-GAAP gross
profit, non-GAAP operating income, non-GAAP net income, non-GAAP
basic and diluted net income per ADS and corresponding margins
presented in this press release exclude share-based compensation
expense, amortization of acquired intangible assets, and change in
fair value of contingent consideration payable for business
acquisition. These non-GAAP measures and related reconciliations to
GAAP measures are described in the sections "Non-GAAP Financial
Measures" and "Reconciliations of Non-GAAP Financial Measures to
Comparable GAAP Measures" located elsewhere in this press
release.
|
"We are very pleased to have achieved solid year-over-year net
revenue growth and margin improvement in the first quarter of the
year, a period traditionally representing our slowest season of the
year," said HiSoft Chief Executive Officer Tiak Koon Loh. "Our accretive growth was driven
by record-high net revenue from companies headquartered in
Greater China as well as continued
strong contributions from our higher value-added services," said
Loh.
"Our Consulting and Packaged Service portfolio, representing
higher value-added services, achieved 143.5% year-over-year net
revenue growth. These robust results further validate our
commitment to provide world-class solution offerings and to become
the partner of choice for both our multinational and domestic
clients who desire to leverage growth and operational
effectiveness," he said.
Loh concluded, "Opportunities with both domestic and
multinational companies in Greater
China remain strong. Our performance in the first
quarter, along with increased visibility into our pipeline, has
encouraged us to update our outlook for 2012. As such, we have
revised upward our full-year guidance estimates. We
anticipate 2012 net revenues to grow at an estimated rate of at
least 34.7% year-over-year, and 2012 non-GAAP diluted earnings per
ADS to grow in an estimated range of 31.1% to 34.4%
year-over-year."
First Quarter 2012 Financial Results
Net Revenues
Net revenues were US$65.5 million
for the first quarter of 2012, an increase of 47.8% from
US$44.3 million for the corresponding
period in 2011. The strong year-over-year growth in net revenues
was driven by strong demand across all service lines and geographic
markets.
Net Revenues by Service Line
|
Three Months
Ended
|
Three Months
Ended
|
Year-over-Year
|
|
March 31,
2012
|
March 31,
2011
|
%
Change
|
|
(US$ in thousands,
except percentages)
|
|
IT Services
|
39,284
|
60.0%
|
25,328
|
57.2%
|
55.1%
|
CPS
|
13,613
|
20.8%
|
5,591
|
12.6%
|
143.5%
|
ADM
|
25,671
|
39.2%
|
19,737
|
44.6%
|
30.1%
|
R&D
Services
|
26,204
|
40.0%
|
18,984
|
42.8%
|
38.0%
|
Total Net
Revenues
|
65,488
|
100.0%
|
44,312
|
100.0%
|
47.8%
|
HiSoft has two service lines: Information Technology
("IT") services and research and development ("R&D")
services. The Company divides IT services into two
categories: consulting and packaged solution services ("CPS")
and application development, testing and maintenance services
("ADM").
Net revenues from IT services were US$39.3 million for the first quarter of 2012, an
increase of 55.1% from US$25.3
million for the corresponding period in 2011. The Company's
CPS services recorded year-over-year revenue growth of 143.5% as a
result of expanded solution offerings, improved traction of the SAP
business unit with large clients and strong demand for services
from the domestic banking and finance industry.
Net revenues from R&D services were US$26.2 million for the first quarter of 2012, an
increase of 38.0% from US$19.0
million for the corresponding period in 2011.
Net Revenues by Geographic Markets
Net Revenues based on Location of Clients'
Headquarters
|
Three Months
Ended
|
Three Months
Ended
|
Year-over-Year
|
|
March 31,
2012
|
March 31,
2011
|
%
Change
|
|
(US$ in thousands,
except percentages)
|
|
United States
|
29,862
|
45.6%
|
21,912
|
49.5%
|
36.3%
|
Greater China
|
14,763
|
22.5%
|
7,595
|
17.1%
|
94.4%
|
Japan
|
13,411
|
20.5%
|
8,468
|
19.1%
|
58.4%
|
Europe
|
4,538
|
6.9%
|
4,120
|
9.3%
|
10.1%
|
Asia South
|
2,914
|
4.5%
|
2,217
|
5.0%
|
31.4%
|
Total Net
Revenues
|
65,488
|
100.0%
|
44,312
|
100.0%
|
47.8%
|
Based on the location of clients' headquarters, the Company's
largest geographic market, the United
States accounted for US$29.9
million or 45.6% of net revenues during the first quarter of
2012, followed by 22.5% for Greater
China, 20.5% for Japan,
6.9% for Europe and 4.5% for
Asia South.
In the first quarter, Greater
China continued its strong growth momentum of 94.4%
year-over-year. The United States
and Japan also continued to
demonstrate steady momentum recording year-over-year net revenue
growth of 36.3% and 58.4% respectively while Asia South recorded a 31.4% year-over-year
revenue growth.
Net Revenues based on Location of Contract Signing
Entity
|
Three Months
Ended
|
Three Months
Ended
|
Year-over-Year
|
|
March 31,
2012
|
March 31,
2011
|
%
Change
|
|
(US$ in thousands,
except percentages)
|
|
Greater China
|
24,382
|
37.2%
|
17,425
|
39.3%
|
39.9%
|
Japan
|
14,676
|
22.4%
|
10,885
|
24.6%
|
34.8%
|
United States
|
14,414
|
22.0%
|
8,883
|
20.0%
|
62.3%
|
Asia South
|
11,212
|
17.2%
|
5,966
|
13.5%
|
87.9%
|
Europe
|
804
|
1.2%
|
1,153
|
2.6%
|
-30.3%
|
Total Net
Revenues
|
65,488
|
100.0%
|
44,312
|
100.0%
|
47.8%
|
Measuring the Company's net revenues based on the location of
contract signing entity, Greater
China accounted for 37.2% of net revenues in the first
quarter of 2012, while Japan
accounted for 22.4%, the United
States accounted for 22.0%, Asia
South accounted for 17.2% and Europe accounted for 1.2%.
In the first quarter of 2012, the Company achieved strong
year-over-year net revenue growth based on the location of contract
signing entity: the United
States grew 62.3%, Japan
grew 34.8%, Greater China grew
39.9% and Asia South grew 87.9%,
while Europe decreased 30.3%.
Largest Clients as a Percentage of Net Revenues
Revenues from the Company's top three, top five and top ten
clients accounted for 23.6%, 33.6% and 46.9% of net revenues,
respectively, during the first quarter of 2012, compared to 27.2%,
38.1% and 55.3%, respectively, for the corresponding period in
2011.
Gross Profit and Gross Margin
Gross profit was US$22.9 million
for the first quarter of 2012, an increase of 62.1% from
US$14.1 million for the corresponding
period in 2011. During the first quarter of 2012, gross margin was
34.9% compared to 31.8% for the corresponding period in 2011. The
improvement in gross margin was primarily due to increased sales in
higher value-added services partially offset by a lower-than-normal
gross margin recorded in first quarter of 2011 caused by the 8.9
magnitude earthquake and subsequent tsunami that struck
Japan in March 2011.
Non-GAAP gross margin was 35.4% for the first quarter of 2012,
improved from 32.3% in the corresponding period in 2011.
Operating Expenses
Total operating expenses were US$16.8
million for the first quarter of 2012, an increase of 46.3%
from US$11.5 million for the
corresponding period in 2011. Total operating expenses as
percentage of total revenues decreased to 25.7%, from 26.0% for the
corresponding period in 2011. The year-over-year increase in
operating expenses was primarily due to increased headcount and
salaries to support sales growth. There was also an increase
in expenses associated with non-cash items, including share-based
compensation expense for retention and incentive, the amortization
of acquired intangible assets and the change in fair value of
contingent consideration payable for business acquisition.
Operating Income and Operating Margin
Operating income for the first quarter of 2012 was US$6.1 million, an increase of 132.1% from
US$2.6 million for the corresponding
period in 2011. Non-GAAP operating income for the first quarter
2012 was US$8.7 million, an increase
of 90.8% from US$4.5 million for the
corresponding period in 2011.
Operating margin was 9.2% for the first quarter of 2012,
compared to 5.9% for the same period in 2011. Non-GAAP operating
margin was 13.2% for the first quarter of 2012, compared to10.3%
for the corresponding period in 2011.
The improvement in operating income and operating margin
reflected the Company's increased effort in higher value-added
services partially offset by the impact of the earthquake and
tsunami in Japan in March 2011.
Provision for Income Taxes
Provision for income taxes was US$0.9
million for the first quarter of 2012, compared to a
US$0.3 million provision for
income taxes in the first quarter of 2011. The effective tax rate
was 12.5% in the first quarter of 2012, compared to 11.0% in the
first quarter of 2011. The increase was primarily the result of one
of the Company's major operating entities in China transitioning to a higher tax rate
starting January 1, 2012.
Net Income and Net Income per ADS
Net income attributable to the Company was US$6.1 million for the first quarter of 2012, an
increase of 119.7% from US$2.8
million for the corresponding period in 2011. Diluted net
income per ADS was US$0.19 for the
first quarter of 2012, improved from US$0.09 in the corresponding period of 2011.
Non-GAAP net income was US$8.7
million for the first quarter of 2012, an increase of 84.8%
from US$4.7 million for the same
period in 2011. Non-GAAP diluted net income per ADS was
US$0.27 in the first quarter of 2012,
compared to US$0.15 in the
corresponding period of 2011.
The improvement in the net income attributable to the Company
and non-GAAP net income reflected the Company's increased effort in
higher value-added services partially offset by the impact of the
earthquake and tsunami in Japan in
March 2011.
Cash Flow and DSO
As of March 31, 2012, the Company
had cash and cash equivalents, restricted cash, and term deposits
totaling US$131.2 million. Operating
cash flow for first quarter of 2012 was a net outflow of
approximately US$2.6 million,
impacted by a US$6.8 million annual
cash bonus payments made to management and sales teams.
Days sales outstanding was 92 days for the first quarter 2012,
compared to 91 days in the corresponding period in 2011.
Outlook for Second Quarter 2012
For the second quarter of 2012, based on current market and
operating conditions and current book orders, the Company
expects:
- Net revenues to be at least US$71.5
million, representing an expected growth rate of 40.6%
year-over-year
- Non-GAAP diluted net income per ADS to be in the estimated
range of US$0.28 to US$0.29. This
represents an expected growth rate of 55.6% to 61.1%
year-over-year, based on 32.5 million weighted average ADSs
outstanding
For the full year 2012, based on current market and operating
conditions and current book orders, the Company expects:
- Net revenues to be at least US$295.0
million, representing an expected growth rate of 34.7%
year-over-year
- Non-GAAP diluted net income per ADS to be in the estimated
range of US$1.18 to US$1.21. This
represents an expected growth rate of 31.1% to 34.4%
year-over-year, based on 32.4 million weighted average ADSs
outstanding
These estimates are based on current market and operating
conditions, are subject to change, and may be influenced positively
or negatively by factors outside the Company's control, including
but not limited to macroeconomic events in the markets in which the
Company operates. See "Safe Harbor Statement" below for additional
information regarding forward-looking statements.
First Quarter 2012 Conference Call Details
HiSoft management will hold an earnings conference call at
6:00 p.m. Eastern Time on
Thursday, May 10, 2012, (6:00 a.m. Beijing/Hong Kong Time on Friday, May 11, 2012). Management will discuss
results and highlights of the quarter and answer questions from
investors.
The dial-in numbers for the conference call are as follows:
U.S. Toll
Free:
|
+1-800-860-2442
|
International Dial
In:
|
+1-412-858-4600
|
The conference call will be broadcast live over the Internet and
can be accessed by clicking the following link:
http://www.mzcan.com/cancast/us/index.php?id=usHSFT_32&version=e.
Additionally, an archived webcast of this call will be available
on the Investor Relations section of the HiSoft website at
http://www.hisoft.com.
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.
For investor and media inquiries please contact:
Ross Warner
HiSoft Technology International Limited
Tel: +86-10-5987-5865
Email: investor_relations@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.
Non-GAAP Financial Measures
To supplement HiSoft's consolidated financial results presented
in accordance with GAAP, HiSoft uses the following measures defined
as non-GAAP financial measures by the SEC: Non-GAAP gross margin,
non-GAAP operating income, non-GAAP net income and non-GAAP diluted
net income per ADS and related margins which exclude share-based
compensation expense, amortization of acquired intangible assets
and change in fair value of contingent consideration payable for
business acquisition. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP.
HiSoft believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance by
excluding certain expenses and expenditures that may not be
indicative of its operating performance. The Company believes that
both management and investors benefit from referring to these
non-GAAP financial measures in assessing the Company's performance
and when planning and forecasting future periods. A limitation of
using non-GAAP gross margin, non-GAAP operating income, non-GAAP
net income and non-GAAP diluted net income per ADS and related
margins is that these non-GAAP measures exclude the share-based
compensation charges, amortization of acquired intangible assets
and change in fair value of contingent consideration payable for
business acquisition that have been and will continue to be for the
foreseeable future a significant recurring expense in the business.
The presentation of these measures should not be considered a
substitute for or superior to GAAP results or as being comparable
to results reported of forecasted by other companies. Management
compensates for these limitations by providing specific information
regarding the GAAP amounts excluded from each non-GAAP measure. The
accompanying tables have more details on the reconciliations
between GAAP financial measures that are comparable to non-GAAP
financial measures.
HISOFT TECHNOLOGY
INTERNATIONAL LIMITED
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(US dollars in
thousands, except share data)
|
|
|
|
|
|
|
|
As of
March 31, 2012
|
|
As of
December 31, 2011
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
107,058
|
|
113,856
|
Restricted
cash
|
|
1,149
|
|
1,222
|
Term deposits
|
|
23,025
|
|
21,681
|
Account receivable,
net
|
|
70,142
|
|
61,413
|
Other current
assets
|
|
6,413
|
|
7,135
|
Total current
assets
|
|
207,787
|
|
205,307
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
13,433
|
|
13,774
|
Goodwill and intangible
assets, net
|
|
54,201
|
|
52,546
|
Other long-term
assets
|
|
2,464
|
|
1,552
|
Total
assets
|
|
277,885
|
|
273,179
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
45,969
|
|
51,029
|
(including current
liabilities of the consolidated variable interest entity without
recourse to HiSoft Technology International Limited of US$240 and
US$238 as of March 31, 2012 and December 31, 2011,
respectively)
|
|
|
|
|
Other
liabilities
|
|
13,333
|
|
12,260
|
Total
liabilities
|
|
59,302
|
|
63,289
|
Total shareholder's
equity
|
|
218,583
|
|
209,890
|
Total liabilities and
equity
|
|
277,885
|
|
273,179
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
As of March 31, 2012,
there were 595,868,022 ordinary shares (equivalent to 31,361,475
ADSs) issued and outstanding.
As of December 31, 2011,
there were 595,868,033 ordinary shares (equivalent to 31,361,475
ADSs) issued and outstanding.
|
HISOFT TECHNOLOGY
INTERNATIONAL LIMITED
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
(US dollars in
thousands, except for share, per share data)
|
|
|
|
Three months ended
March 31,
|
|
2012
|
|
2011
|
|
|
|
|
Net
revenues
|
65,488
|
|
44,312
|
Cost of
revenues
|
(42,611)
|
|
(30,203)
|
Gross profit
|
22,877
|
|
14,109
|
|
|
|
|
Operating
expenses
|
(16,824)
|
|
(11,501)
|
Income from
operations
|
6,053
|
|
2,608
|
|
|
|
|
Other
income
|
1,045
|
|
557
|
Net income
before income tax expenses
|
7,098
|
|
3,165
|
|
|
|
|
Income tax
expenses
|
(887)
|
|
(348)
|
Net
income
|
6,211
|
|
2,817
|
Less: Net profit
attributable to non-controlling interest
|
(135)
|
|
(51)
|
Net income
attributable to HiSoft Technology International
Limited
|
|
|
|
6,076
|
|
2,766
|
|
|
|
|
Net income per
share
|
|
|
|
Basic
|
0.01
|
|
0.00
|
Diluted
|
0.01
|
|
0.00
|
|
|
|
|
Weighted average
shares used in calculating net income per common
share
|
|
|
|
Basic
|
574,160,155
|
|
579,358,183
|
Diluted
|
599,046,527
|
|
603,689,566
|
|
|
|
|
Net Income per
ADS
|
|
|
|
Basic
|
0.20
|
|
0.09
|
Diluted
|
0.19
|
|
0.09
|
|
|
|
|
Weighted average ADS
used in calculating net income per ADS
|
|
|
|
Basic
|
30,218,956
|
|
30,492,536
|
Diluted
|
31,528,765
|
|
31,773,135
|
HISOFT TECHNOLOGY
INTERNATIONAL LIMITED
|
Condensed
Consolidated Statements of Comprehensive Income
(Unaudited)
|
(US dollars in
thousands, except for share, per share data)
|
|
Three months ended
March 31,
|
|
2012
|
|
2011
|
|
|
|
|
Net
income
|
6,211
|
|
2,817
|
Other comprehensive
income, net of tax:
|
|
|
|
Change in cumulative
foreign exchange translation adjustment
|
405
|
|
842
|
Comprehensive
income
|
6,616
|
|
3,659
|
|
|
|
|
Less: Comprehensive
income attributable to non-controlling interest
|
|
|
|
(140)
|
|
(59)
|
Comprehensive income
attributable to HiSoft Technology International
Limited
|
|
|
|
6,476
|
|
3,600
|
HISOFT TECHNOLOGY
INTERNATIONAL LIMITED
|
Reconciliations of
Non-GAAP Financial Measures to Comparable GAAP Measures
(Unaudited)
|
(US dollars in
thousands, except per share data and percentages)
|
|
Three months ended
March 31,
|
|
2012
|
|
2011
|
|
|
|
|
GAAP operating
income
|
6,053
|
|
2,608
|
GAAP operating income
margin
|
9.2%
|
|
5.9%
|
|
|
|
|
Adjustments:
|
|
|
|
- Share-based
compensation
|
1,957
|
|
1,177
|
- Amortization of
acquired intangible assets
|
1,043
|
|
411
|
- Change in fair
value of contingent consideration payable for M&A
|
(381)
|
|
350
|
|
|
|
|
Non-GAAP operating
income
|
8,672
|
|
4,546
|
Non-GAAP operating
income margin
|
13.2%
|
|
10.3%
|
|
|
|
|
GAAP net
income
|
6,076
|
|
2,766
|
GAAP net
margin
|
9.3%
|
|
6.2%
|
|
|
|
|
Adjustments:
|
|
|
|
- Share-based
compensation
|
1,957
|
|
1,177
|
- Amortization of
acquired intangible assets
|
1,043
|
|
411
|
- Change in fair
value of contingent consideration payable for M&A
|
(381)
|
|
350
|
|
|
|
|
Non-GAAP net
income
|
8,695
|
|
4,704
|
Non-GAAP net
margin
|
13.3%
|
|
10.6%
|
|
|
|
|
Non-GAAP net income
per ADS
|
|
|
|
Basic
|
0.29
|
|
0.15
|
Diluted
|
0.27
|
|
0.15
|
Weighted average ADS
used in calculating Non-GAAP net income per ADS
|
|
|
|
Basic
|
30,218,956
|
|
30,492,536
|
Diluted
|
31,528,765
|
|
31,773,135
|
|
|
|
|
GAAP net income per
ADS
|
|
|
|
Basic
|
0.20
|
|
0.09
|
Adjustments:
|
|
|
|
- Share-based
compensation
|
0.07
|
|
0.04
|
- Amortization of
acquired intangible assets
|
0.03
|
|
0.01
|
- Change in fair
value of contingent consideration payable for M&A
|
(0.01)
|
|
0.01
|
Non-GAAP net income
per ADS
|
|
|
|
Basic
|
0.29
|
|
0.15
|
|
|
|
|
GAAP net income per
ADS
|
|
|
|
Diluted
|
0.19
|
|
0.09
|
Adjustments:
|
|
|
|
- Share-based
compensation
|
0.06
|
|
0.04
|
- Amortization of
acquired intangible assets
|
0.03
|
|
0.01
|
- Change in fair
value of contingent consideration payable for M&A
|
(0.01)
|
|
0.01
|
Non-GAAP net income
per ADS
|
|
|
|
Diluted
|
0.27
|
|
0.15
|
|
|
|
|
Note:
|
|
|
|
Basic and diluted
non-GAAP net income per ADS are computed using non-GAAP net income
and the same number of ADSs
used in calculating basic and diluted GAAP net income per
ADS.
|
HISOFT TECHNOLOGY
INTERNATIONAL LIMITED
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
(in U.S. dollars in
thousands)
|
|
|
|
Three Month Ended
March 31,
|
|
|
2012
|
|
2011
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
6,211
|
|
2,817
|
|
Adjustments to reconcile
net income to net cash (used in) provided by operating
activities:
|
|
|
Provision for doubtful
accounts
|
|
31
|
|
356
|
|
|
(Gain) loss on disposal
of property, plant and equipment
|
|
(44)
|
|
32
|
|
|
Depreciation
|
|
1,392
|
|
918
|
|
|
Change in fair value of
foreign-currency forward contracts
|
|
9
|
|
(4)
|
|
|
Amortization of
intangible assets
|
|
1,043
|
|
411
|
|
|
Share-based compensation
expenses
|
|
1,957
|
|
1,177
|
|
|
Changes in fair value of
contingent consideration
|
|
(381)
|
|
350
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
(8,401)
|
|
(1,243)
|
|
|
Other current
assets
|
|
(36)
|
|
(1,095)
|
|
|
Other assets
|
|
(65)
|
|
(41)
|
|
|
Accounts
payable
|
|
(743)
|
|
134
|
|
|
Other
liabilities
|
|
(3,542)
|
|
(3,653)
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
(2,569)
|
|
159
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Term deposits
|
|
(1,270)
|
|
-
|
|
Purchase of property,
plant and equipment
|
|
(1,036)
|
|
(1,491)
|
|
Restricted
cash
|
|
82
|
|
(15)
|
|
Deferred and contingent
consideration paid for business acquisitions(1)
|
(782)
|
|
-
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(3,006)
|
|
(1,506)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Repayment of bank
loan
|
|
-
|
|
(40,000)
|
|
Cash received from
non-controlling interest
|
|
-
|
|
908
|
|
Proceeds from issuance
of common share under employee option plan
|
1,057
|
|
-
|
|
Deferred and contingent
consideration paid for business acquisitions(1)
|
(2,897)
|
|
(2,200)
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(1,840)
|
|
(41,292)
|
|
|
|
|
|
|
|
Effect of exchange rate
changes
|
|
617
|
|
990
|
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
|
(6,798)
|
|
(41,649)
|
Cash and cash
equivalents at beginning of period
|
|
113,856
|
|
169,893
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
107,058
|
$
|
128,244
|
|
|
|
|
|
(1) Payment for deferred
and contingent consideration relating to business acquisitions
which were made within three months or less from the acquisition
date
were included in the investing activities; payments made after
three months from acquisition date were included in the financing
activities.
|
SOURCE HiSoft Technology International Limited