SHANGHAI, Feb. 22, 2019 /PRNewswire/ -- CLPS Incorporation
(the "Company" or "CLPS") (Nasdaq: CLPS), a leading information
technology ("IT") consulting and solutions service provider
focusing on the banking, insurance and financial sectors in
China and globally, today
announced its financial results for the six months ended
December 31, 2018, or the first half
of the Company's fiscal year 2019.
First Half of Fiscal 2019 Highlights (all results compared to
the six months ended December 31,
2017)
- Revenues increased by 38.7% to $30.8
million from $22.2
million.
- Gross profit increased by 25.8% to $11.2
million from $8.9
million.
- Net loss attributable to CLPS
Incorporation's shareholders of $1.4 million, or $0.10 basic and diluted losses per share, from
net income attributable to CLPS Incorporation's shareholders
of $1.3 million, or $0.12 basic and diluted earnings per share.
- Non-GAAP net income attributable to CLPS
Incorporation's shareholders[1] increased by 100% to $2.6 million, or $0.19 basic earnings per share and $0.18 diluted earnings per share, from
$1.3 million, or $0.12 basic and diluted earnings per share (See
Use of Non-GAAP Financial Measures below for a discussion of
such measures as used in this press release).
Mr. Raymond Lin, Chief Executive
Officer of CLPS, commented, "During the first six months of the
2019 fiscal year, we continued to grow our revenue at a
double-digit pace thanks to growth in demand from existing and new
clients. New clients in particular helped us with our geographic
growth, including further expansion in Singapore. As previously announced, our
customized IT solution service successfully passed client testing
for its blockchain project in Shanghai, and we are on track to delivering
per client requirements."
"We also expanded our talent development capabilities as we
launched CLPS Academy with the vision of establishing it as a
Center of Excellence to fulfill the quality and professional IT
training needs of our staff, business partners, and potential
clients. Furthermore, we expect to open additional training centers
overseas to meet employee demand globally. Our CLPS Research
Institute remains dedicated to exploring the application of new and
emerging technology such as big data, blockchain, distributed
financial cloud applications, and robotic process automation, which
we have been piloting internally. Our efforts were recently
recognized by industry peers at the China Finance Summit in
December, where we received the 2018 Fintech Brand Leadership
Award."
"As we look to the remainder of this fiscal year and beyond, we
expect to continue to make long-term investments to support our
continued growth. We remain focused on expanding horizontally and
vertically, growing our global footprint and market share, and
continuing to support our talent and technology development. We
intend to continue to drive forward our dual-engine growth strategy
and to create long-term sustainable value for our shareholders,"
concluded Mr. Lin.
First Half of Fiscal Year 2019 Financial Results
Revenues
In the first half of fiscal 2019, revenues increased by
$8.6 million, or 38.7%, to
$30.8 million from $22.2 million in the prior year period. This
increase in revenue was mainly due to an increase in revenue from
IT consulting services.
Revenue from IT consulting services increased by $8.2 million, or 38.0%, to $29.8 million and accounted for 96.8% of total
revenue in the first half of fiscal 2019 from $21.6 million, or 97.4% of total revenue, in the
same period of the previous year. The increase was primarily due to
increased demand from existing and new clients. For the six months
ended December 31, 2018 and 2017,
50.3% and 46.8% of IT consulting services revenue were from
international banks, respectively.
Revenue from customized IT solution services increased by
$0.4 million, or 80.0%, to
$0.9 million in the first half of
fiscal 2019 from $0.5 million in the
same period of the previous year. The increase was also primarily
due to growth from existing and new clients. During the first half
of fiscal 2019, revenue from other services increased by
$0.05 million to $0.1 million from $0.05
million in the same period of the previous year.
Gross Profit and Gross Margin
Gross profit increased by $2.3
million, or 25.8%, to $11.2
million in the first half of fiscal 2019 from $8.9 million in the prior year period. Gross
margin decreased to 36.4% in the first half of fiscal 2019 compared
to 39.9% in the prior year period. The decrease in gross margin was
primarily due to the lower gross margins of new projects.
Operating Expenses
Selling and marketing expenses decreased by $0.1 million, or 9.1%, to $1.0 million in the first half of fiscal 2019
from $1.1 million in the prior year
period due to the decrease of salary expenses caused by the
employees' resignation.
Research and development expenses decreased by $0.6 million, or 16.7%, to $3.0 million in the first half of fiscal 2019
from $3.6 million in the prior year
period due to the decrease of salary expenses. Salary expenses of
some R&D employees who supported improvement of management
system of the Company were recorded as general and administrative
expenses.
General and administrative expenses increased by $6.1 million, or 196.8%, to $9.2 million in the first half of fiscal 2019
from $3.1 million in the prior year
period. The increase was primarily due to an addition of
$4.0 million non-cash share-based
compensation expenses related to the grants under the 2017 Equity
Incentive Plan. After the deduction of non-cash share-based
compensation expenses, non-GAAP general and administrative
expenses[2] increased by
$2.1 million, or 67.7%, to
$5.2 million in the first half of
fiscal 2019 from $3.1 million in the
same period of the previous year. The increase in non-GAAP
administrative expenses was primarily due to routine expenses
incurred after going public and due to a year-over-year increase in
salary and compensation expenses.
Operating Income
Operating income decreased by $3.1
million to a $2.0 million loss
in the first half of fiscal 2019 from an income of $1.1 million in the same period of the previous
year. Operating margin was (6.5%) in the first half of fiscal 2019
compared to 4.9% in the prior year period. After the deduction of
non-cash share-based compensation expenses, non-GAAP operating
income[3] increased by
$0.9 million, or 81.8%, to
$2.0 million in the first half of
fiscal 2019 from $1.1 million in the
same period of the previous year. Non-GAAP operating
margin[4] increased to
6.5% in the first half of fiscal 2019 from 4.9% in the prior year
period.
Other Income and Expenses
Subsidies and other income increased to $0.6 million in the first half of fiscal 2019
from $0.4 million in the same period
of the previous year.
Provision for Income Taxes
Provision for income tax increased by $0.1 million to $0.2
million in the first half of fiscal 2019 from $0.1 million in the same period of the previous
year, mainly due to the increase of current income tax
expenses.
Net Income and EPS
Net income decreased by $3.0
million to a loss of $1.7
million in the first half of fiscal 2019 from an income of
$1.3 million in the prior year
period. The decrease in net income was due to the increase in
non-cash share-based compensation expenses. After the deduction of
non-cash share-based compensation expenses, non-GAAP net
income[5] increased by
$1.0 million, or 76.9%, to
$2.3 million in the first half of
fiscal 2019 from $1.3 million in the
same period of the previous year. After the deduction of
non-controlling interests, net loss attributable to CLPS
Incorporation's shareholders in the first half of fiscal 2019
was $1.4 million, or $(0.10) per basic and diluted share. After
excluding the impact of non-cash share-based compensation expenses,
non-GAAP net income attributable to CLPS
Incorporation's shareholders[1] in the first half of fiscal 2019
was $2.6 million, or $0.19 per basic share and $0.18 per diluted share. This is compared to net
income attributable to CLPS Incorporation's shareholders of
$1.3 million, or $0.12 per basic and diluted share, in the first
half of fiscal 2018.
Cash Flow
As of December 31, 2018, the
Company had cash and cash equivalents of $5.8 million compared to $9.7 million as of June
30, 2018.
Net cash provided by operating activities was approximately
$3.3 million for the six months ended
December 31, 2018, including net
deficit of $1.7 million, adjusted for
non-cash items of $4.1 million and
positive adjustments for changes in operating assets and
liabilities of $0.9 million. Non-cash
items include the share-based compensation reserves of $4.0 million.
For the six months ended December 31,
2018, net cash used in investing activities was
approximately $7.2 million, primarily
due to the purchase of short-term investments.
Net cash used in financing activities was approximately
$606 for the six months ended
December 31, 2018. During this
period, the Company borrowed bank loans of approximately
$2.6 million, repaid loans of
approximately $3.3 million, received
$1.5 million from over-allotment,
paid for purchase of non-controlling interests in subsidiary of
$0.6 million and paid $0.2 million to related parties.
Financial Outlook
For fiscal year 2019, we expect, absent material acquisitions or
non-recurring transactions, a total sales growth in the range of
approximately 30% to 35%, and a non-GAAP net income growth in the
range of approximately 30% to 35%, as compared with the 2018
financial results. The foregoing guidance include estimated 2019
financial results of the InfoGain acquisition, an entity in which
we acquired an 80% equity stake in August
2018. In addition, this guidance necessarily assumes no
significant adverse price changes during fiscal year 2019.
This forecast reflects our current and preliminary views, which
are subject to change and are subject to risks and uncertainties,
including, but not limited to, potential accounting adjustments
attributable to InfoGain acquisition as well as various risks and
uncertainties facing our business and operations as identified in
our public filings.
Conference Call Information
The Company will hold a conference call at 8:30 am ET on Feb. 22,
2019, to discuss first half of fiscal year 2019 results.
Listeners may access the call by dialing:
U.S.
Toll-Free:
|
+1-888-220-8474
|
U.S.
Local/International:
|
+1-323-794-2590
|
China
National:
|
400-120-9101
|
Hong Kong:
|
800-961-105
|
A webcast will also be available through the Company's investor
relations website at http://ir.clpsglobal.com/
A replay of the call will be available through March 1, 2019, by dialing:
U.S.
Toll-Free:
|
+1-844-512-2921
|
U.S.
Local/International:
|
+
1-412-317-6671
|
Passcode:
|
2787866
|
Exchange Rate
The balance sheet amounts with the exception of equity as of
December 31, 2018 were translated at
6.8755 RMB to 1.00 USD as compared to 6.5063 RMB to 1.00
USD as of December 31, 2017.
The equity accounts were stated at their historical rate. The
average translation rates applied to the income statements accounts
for the periods ended December 31,
2018 and 2017 were 6.8585 RMB
to 1.00 USD and 6.6412 RMB to 1.00
USD, respectively. The change in the value of the RMB
relative to the U.S. dollar may affect our financial results
reported in the U.S, dollar terms without giving effect to any
underlying change in our business or results of operation.
About CLPS Incorporation
Headquartered in Shanghai,
China, CLPS Incorporation (the "Company") (Nasdaq: CLPS) is
a global leading information technology ("IT"), consulting and
solutions service provider focusing on the banking, insurance and
financial sectors. The Company serves as an IT solutions provider
to a growing network of clients in the global financial industry,
including large financial institutions in the US, Europe, Australia and Hong
Kong and their PRC-based IT centers. The Company maintains
ten delivery and/or research & development centers to serve
different customers in various geographic locations. Mainland
China centers are located in
Shanghai, Beijing, Dalian, Tianjin, Chengdu, Guangzhou and Shenzhen. The remaining three global centers
are located in Hong Kong,
Singapore and Australia. For further information regarding
the Company, please visit: http://ir.clpsglobal.com/.
Forward-Looking Statements
Certain of the statements made in this press release are
"forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include statements with respect to the
Company's beliefs, plans, objectives, goals, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and
other factors, which may be beyond the Company's control, and which
may cause the actual results, performance, capital, ownership or
achievements of the Company to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. All such statements attributable to us
are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties related to the Company's financial and operational
performance in the first half of 2019, its expectations of the
Company's future performance, its preliminary outlook and guidance
offered in this presentation, as well as the risks and
uncertainties described in the Company's most recently filed SEC
reports and filings. Such reports are available upon request from
the Company, or from the Securities and Exchange Commission,
including through the SEC's Internet website at http://www.sec.gov.
We have no obligation and do not undertake to update, revise or
correct any of the forward-looking statements after the date
hereof, or after the respective dates on which any such statements
otherwise are made.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is
prepared in conformity with accounting principles generally
accepted in the United States of
America ("U.S. GAAP"), except that the consolidated
statement of changes in shareholders' equity, consolidated
statements of cash flows, and the detailed notes have not been
presented. The Company uses non-GAAP operating income, non-GAAP
operating margin, non-GAAP net income attributable to CLPS
Incorporation's shareholders, and basic and diluted non-GAAP
net income per share, which are non-GAAP financial measures.
Non-GAAP operating income is operating income excluding share-based
compensation expenses. Non-GAAP operating margin is non-GAAP
operating income as a percentage of revenues. Non-GAAP net income
attributable to CLPS Incorporation's shareholders is net
income attributable to CLPS Incorporation's shareholders
excluding share-based compensation expenses. Basic and diluted
non-GAAP net income per share is non-GAAP net income attributable
to common shareholders divided by weighted average number of shares
used in the calculation of basic and diluted net income per share.
The Company believes that separate analysis and exclusion of the
non-cash impact of share-based compensation expenses clarity to the
constituent parts of its performance. The Company reviews these
non-GAAP financial measures together with GAAP financial measures
to obtain a better understanding of its operating performance. It
uses the non-GAAP financial measure for planning, forecasting and
measuring results against the forecast. The Company believes that
non-GAAP financial measure is useful supplemental information for
investors and analysts to assess its operating performance without
the effect of non-cash share-based compensation expenses, which
have been and will continue to be significant recurring expenses in
its business. However, the use of non-GAAP financial measures has
material limitations as an analytical tool. One of the limitations
of using non-GAAP financial measures is that they do not include
all items that impact the Company's net income for the period. In
addition, because non-GAAP financial measures are not measured in
the same manner by all companies, they may not be comparable to
other similar titled measures used by other companies. In light of
the foregoing limitations, you should not consider non-GAAP
financial measure in isolation from or as an alternative to the
financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, or as a substitute
for, the financial information prepared and presented in accordance
with U.S. GAAP. The Company encourages investors to carefully
consider its results under GAAP, as well as its supplemental
non-GAAP information and the reconciliation between these
presentations, to more fully understand its business. For more
information on these non-GAAP financial measures, please see the
table captioned "Unaudited Reconciliations of Non-GAAP to GAAP
Results" near the end of this release.
Contact:
CLPS Incorporation
Tian van Acken
Chief Financial Officer
Phone: +86-158-0198-4357
Email: ir@clpsglobal.com
ICR Inc.
Rose Zu
Phone: +646-405-4868
Email: ir@clpsglobal.com
[1] Non-GAAP net
income attributable to CLPS Incorporation's shareholders is a
non-GAAP financial measure, which is defined as net income
attributable to CLPS Incorporation's shareholders excluding
share-based compensation expenses. Please refer to the section
titled "Unaudited Reconciliation of Non-GAAP to GAAP Results" for
details.
|
[2] Non-GAAP
general and administrative expenses is a non-GAAP financial
measure, which is defined as general and administrative expenses
excluding share-based compensation expenses. Please refer to the
section titled "Unaudited Reconciliation of Non-GAAP to GAAP
Results" for details.
|
[3]
Non-GAAP operating income is a non-GAAP financial measure, which is
defined as operating income excluding share-based compensation
expenses. Please refer to the section titled "Unaudited
Reconciliation of Non-GAAP to GAAP Results" for details.
|
[4]
Non-GAAP operating margin is a non-GAAP financial measure, which is
defined as non-GAAP operating income as a percentage of revenues.
Please refer to the section titled "Unaudited Reconciliation of
Non-GAAP to GAAP Results " for details.
|
[5]
Non-GAAP net income is a non-GAAP financial measure, which is
defined as net income excluding share-based compensation expenses.
Please refer to the section titled "Unaudited Reconciliation of
Non-GAAP to GAAP Results" for details.
|
CLPS
INCORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
As of December
31, 2018
|
|
|
As of June
30, 2018
|
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,791,926
|
|
|
$
|
9,742,886
|
|
|
Short-term
investments
|
|
|
5,672,315
|
|
|
|
|
-
|
|
Accounts receivable,
net
|
|
|
16,542,912
|
|
|
|
16,267,835
|
|
|
Amount due from
underwriter on the over-allotment
|
|
|
-
|
|
|
|
1,472,592
|
|
|
Prepayments, deposits
and other assets, net
|
|
|
1,769,813
|
|
|
|
1,231,217
|
|
|
Prepaid income
tax
|
|
|
-
|
|
|
|
206,361
|
|
|
Amount due from
related parties
|
|
|
186,798
|
|
|
|
131,321
|
|
|
Total Current
Assets
|
|
|
29,963,764
|
|
|
|
29,052,212
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
453,703
|
|
|
|
333,897
|
|
|
Intangible assets,
net
|
|
|
508,054
|
|
|
|
260,059
|
|
|
Goodwill
|
|
|
436,418
|
|
|
|
173,560
|
|
|
Escrow
receivable
|
|
|
200,000
|
|
|
|
200,000
|
|
|
Prepayments, deposits
and other assets, net
|
|
|
535,416
|
|
|
|
119,372
|
|
|
Long-term investment
– equity method
|
|
|
148,675
|
|
|
|
142,590
|
|
|
Long-term investment
– cost method
|
|
|
151,124
|
|
|
|
151,124
|
|
|
Deferred tax assets,
net
|
|
|
464,395
|
|
|
|
512,097
|
|
|
Total
Assets
|
|
$
|
32,861,549
|
|
|
$
|
30,944,911
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
1,890,772
|
|
|
$
|
2,553,989
|
|
|
Accounts payable and
other current liabilities
|
|
|
529,539
|
|
|
|
1,454,770
|
|
|
Tax
payables
|
|
|
919,607
|
|
|
|
904,850
|
|
|
Deferred
revenue
|
|
|
113,147
|
|
|
|
125,080
|
|
|
Customer
deposits
|
|
|
1,000,038
|
|
|
|
200,836
|
|
|
Salaries and benefits
payable
|
|
|
8,140,318
|
|
|
|
7,341,688
|
|
|
Amounts due to
related parties
|
|
|
-
|
|
|
|
208,342
|
|
|
Total Current
Liabilities
|
|
|
12,593,421
|
|
|
|
12,789,555
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
Common share, $0.0001
par value; 100,000,000 shares authorized;
13,813,821 shares issued and outstanding as of December 31,
2018 and 13,590,000 shares issued and outstanding as of June
30,
2018*
|
|
|
1,381
|
|
|
|
1,359
|
|
|
Additional paid-in
capital
|
|
|
21,299,235
|
|
|
|
17,285,543
|
|
|
Statutory
reserves
|
|
|
1,576,327
|
|
|
|
1,118,467
|
|
|
Accumulated
deficit
|
|
|
(2,415,109)
|
|
|
|
(524,618)
|
|
|
Accumulated other
comprehensive loss
|
|
|
(752,634)
|
|
|
|
(401,677)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total CLPS
Incorporation's Shareholders' Equity
|
|
|
19,709,200
|
|
|
|
17,479,074
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
Interests
|
|
|
558,928
|
|
|
|
676,282
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Shareholders' Equity
|
|
|
20,268,128
|
|
|
|
18,155,356
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
32,861,549
|
|
|
$
|
30,944,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The shares and per
share data are presented on a retroactive basis to reflect the
nominal share issuance.
|
CLPS
INCORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED statements
|
of INCOME AND
COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
December 31,
|
|
|
|
|
|
2018
(Unaudited)
|
|
|
|
2017
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
30,795,748
|
|
|
|
22,199,995
|
|
Less: Cost of
revenues
|
|
|
|
(19,625,663)
|
|
|
|
(13,341,978)
|
|
Gross
profit
|
|
|
|
11,170,085
|
|
|
|
8,858,017
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
|
972,876
|
|
|
|
1,132,931
|
|
Research and
development
|
|
|
|
3,039,361
|
|
|
|
3,562,988
|
|
General and
administrative (note 1)
|
|
|
|
9,161,267
|
|
|
|
3,064,232
|
|
Total operating
expenses
|
|
|
|
13,173,504
|
|
|
|
7,760,151
|
|
(Loss) income from
operations
|
|
|
|
(2,003,419)
|
|
|
|
1,097,866
|
|
Subsidies and other
income
|
|
|
|
623,156
|
|
|
|
366,798
|
|
Other
expense
|
|
|
|
(61,717)
|
|
|
|
(13,213)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income tax
|
|
|
|
(1,441,980)
|
|
|
|
1,451,451
|
|
Provision for income
taxes
|
|
|
|
242,898
|
|
|
|
126,060
|
|
Net (loss)
income
|
|
|
|
(1,684,878)
|
|
|
|
1,325,391
|
|
Less: net loss
attributable to non-controlling interests
|
|
|
|
(252,247)
|
|
|
|
(5,938)
|
|
Net (loss)
income attributable to CLPS Incorporation's
shareholders
|
|
|
$
|
(1,432,631)
|
|
|
$
|
1,331,329
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation (loss) gain
|
|
|
$
|
(370,384)
|
|
|
$
|
231,224
|
|
Less: foreign
currency translation (loss) gain attributable
to non-controlling interests
|
|
|
|
(19,427)
|
|
|
|
20,773
|
|
Other comprehensive
(loss) income attributable to CLPS
Incorporation's shareholders
|
|
|
$
|
(350,957)
|
|
|
$
|
210,451
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income
|
|
|
|
|
|
|
|
|
|
CLPS Incorporation
shareholders
|
|
|
$
|
(1,783,588)
|
|
|
$
|
1,541,780
|
|
Non-controlling
interest
|
|
|
|
(271,674)
|
|
|
|
14,835
|
|
|
|
|
$
|
(2,055,262)
|
|
|
$
|
1,556,615
|
|
|
|
|
|
|
|
|
|
|
|
Basic (losses)
earnings per common share*
|
|
|
$
|
(0.10)
|
|
|
$
|
0.12
|
|
Weighted average
number of share outstanding – basic
|
|
|
|
13,799,224
|
|
|
|
11,290,000
|
|
Diluted (losses)
earnings per common share
|
|
|
$
|
(0.10)
|
|
|
$
|
0.12
|
|
Weighted average
number of share outstanding – diluted (note 2)
|
|
|
|
13,799,224
|
|
|
|
11,290,000
|
|
Note:
|
|
|
|
|
|
|
|
|
|
(1)
Includes share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
$
|
4,013,714
|
|
|
$
|
-
|
|
|
|
|
$
|
4,013,714
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
(2) All dilutive
potential ordinary shares had anti-dilutive impact and were
excluded in computation of
diluted earnings per share in the period when loss was
reported.
|
|
|
|
|
|
|
|
|
|
|
* The shares and per
share data are presented on a retroactive basis to reflect the
nominal share issuance.
|
CLPS
INCORPORATION
|
UNAUDITED
RECONCILIATION OF NON-GAAP TO GAAP RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
December 31,
|
|
|
|
|
|
2018
(Unaudited)
|
|
|
|
2017
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
|
|
$
|
9,161,267
|
|
|
$
|
3,064,232
|
|
Less: share-based
compensation expense
|
|
|
|
4,013,714
|
|
|
|
-
|
|
Non-GAAP general
and administrative expense
|
|
|
$
|
5,147,553
|
|
|
$
|
3,064,232
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
|
$
|
(2,003,419)
|
|
|
$
|
1,097,866
|
|
Add: share-based
compensation expense
|
|
|
|
4,013,714
|
|
|
|
-
|
|
Non-GAAP operating
income
|
|
|
$
|
2,010,295
|
|
|
$
|
1,097,866
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Margin
|
|
|
|
(6.5%)
|
|
|
|
4.9%
|
|
Add: share-based
compensation expense
|
|
|
|
13.0%
|
|
|
|
-
|
|
Non-GAAP operating
margin
|
|
|
|
6.5%
|
|
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
$
|
(1,684,878)
|
|
|
$
|
1,325,391
|
|
Add: share-based
compensation expense
|
|
|
|
4,013,714
|
|
|
|
-
|
|
Non-GAAP net
income
|
|
|
$
|
2,328,836
|
|
|
$
|
1,325,391
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to CLPS Incorporation's shareholders
|
|
|
$
|
(1,432,631)
|
|
|
$
|
1,331,329
|
|
Add: share-based
compensation expense
|
|
|
|
4,013,714
|
|
|
|
-
|
|
Non-GAAP net
income attributable to CLPS Incorporation's
shareholders
|
|
|
$
|
2,581,083
|
|
|
$
|
1,331,329
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of share outstanding used in computing
GAAP and non-GAAP basic earnings
|
|
|
|
13,799,224
|
|
|
|
11,290,000
|
|
GAAP Basic (losses)
earnings per common share
|
|
|
$
|
(0.10)
|
|
|
$
|
0.12
|
|
Add: share-based
compensation expenses
|
|
|
|
0.29
|
|
|
|
-
|
|
Non-GAAP basic
earnings per common share
|
|
|
$
|
0.19
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of share outstanding used in computing
GAAP diluted earnings
|
|
|
|
13,799,224
|
|
|
|
11,290,000
|
|
Add: effect of
dilutive securities (note 1)
|
|
|
|
158,574
|
|
|
|
-
|
|
Weighted average
number of share outstanding used in computing
non-GAAP diluted earnings
|
|
|
|
13,957,798
|
|
|
|
11,290,000
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted (losses)
earnings per common share
|
|
|
$
|
(0.10)
|
|
|
$
|
0.12
|
|
Add: share-based
compensation expenses
|
|
|
|
0.28
|
|
|
|
-
|
|
Non-GAAP diluted
earnings per common share
|
|
|
$
|
0.18
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
(1) All
dilutive potential ordinary shares had anti-dilutive impact and
were excluded in computation of
GAAP diluted earnings per share in the period when loss was
reported.
|
|
View original
content:http://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-first-half-of-fiscal-year-2019-300800245.html
SOURCE CLPS