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Camelot Information Systems Inc. Announces Unaudited Fourth-Quarter and Full-Year 2012 Financial Results.

BEIJING
  or  , city (1994 est. urban pop. 6,093,300; 1994 est. total pop. 7,240,700), capital of the People’s Republic of China. It is in central Hebei prov.
, April 26, 2013 /PRNewswire/ —
Camelot
 , in Arthurian legend, the seat of King Arthur’s court. The origin of the name is unknown. It has been variously located at Cadbury Camp, Somerset; Winchester; Camelford; and Caerleon.
 Information Systems
Inc. (“Camelot” or the “Company”)(
NYSE

:
CIS
 , same as Kish (1.)


(1) (CompuServe Information Service) See CompuServe.

(2) (Card Information S
), a
leading domestic provider of enterprise
application services

 and
financial industry IT services in China, today announced unaudited
financial results for the fourth quarter and year ended
December
 see month.
 31,
2012.

Fourth-Quarter Financial and Operating Highlights:

* Net revenues were $71.9 million in the fourth quarter of 2012, an
increase of 20.4% from $59.7 million in the fourth quarter of 2011 and
an increase of 14.0% from the third quarter

* Net revenues from enterprise application services (
EAS

) grew 7.0%
year-over year, with growth in other sectors offset by lower sales in
the Resources & Energy and Manufacturing & Automotive
sectors

* Net revenues from financial industry IT services (
FIS
 n abbr (BRIT) (= Family Income Supplement) → ayuda estatal familiar
) increased
47.3% year-over-year due to pent-up demand
stemming

 from 2011 and from
continuing solid execution

* Gross profit was $15.9 million, as compared to $15.9 million in
the year-ago quarter and $17.2 million in the third quarter

* Loss from operations was $9.0 million, as compared to a loss from
operations of $3.2 million in the year ago quarter and $31.9 million
loss from operations in the third quarter. Adjusted
operating loss

The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income.
[1]
was $2.8 million, as compared to an adjusted operating loss of $1.0
million in the year-ago quarter and adjusted
operating income

 of $5.5
million in the third quarter

* Net loss
attributable

 to Camelot was $10.6 million, as compared to
net income attributable to Camelot of $0.5 million in the year-ago
quarter and a net loss attributable to Camelot of $31.5 million in the
third quarter. Adjusted net loss[sup.1] attributable to Camelot was $4.5
million, as compared to adjusted net income of $2.7 million in the
year-ago quarter and adjusted net income attributable to Camelot of $5.8
million in the third quarter

* On
October
 see month.
 16, 2012, the Company signed a share transfer agreement
with the original shareholders of Dimension regarding transferring 35%
of Dimension to the latter in exchange of 1,152,352 ordinary shares,
which was the share consideration issued to the original shareholders
during shareholders during acquisition of the entity as of
January
 see month.
 1,
2011

Full-Year Financial and Operating Highlights:

* Net revenues increased 11.9% to $254.1 million in 2012, as
compared to $227.1 million in 2011

* Adjusted operating income[sup.1] was $7.8 million, as compared to
adjusted operating income of $13.0 million in 2011

* Operating loss was $39.0 million, as compared to U.S.
GAAP

See generally accepted accounting principles (GAAP).
 operating loss of $43.1 million in 2011

* Adjusted net income[sup.1] attributable to Camelot was $6.2
million, as compared to adjusted net income attributable to Camelot of
$15.3 million in 2011. Adjusted
diluted
  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 earnings per ADS[sup.1] in 2012
were $0.14, as compared to diluted earnings per ADS of $0.34 in 2011

* Net loss attributable to Camelot was $40.5 million, as compared to
U.S. GAAP net income attributable to Camelot of $40.8 million in
2011

“Camelot demonstrated satisfactory revenue growth in the fourth
quarter of 2012, despite a continuing soft China macro economy. Revenues
in our EAS segment grew at a reasonable rate, but the growth was offset
by declines in the
economically
  
adj.
1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing.

2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic:
 sensitive Resources & Energy and
Manufacturing & Automotive sectors. Revenue growth in our FIS
segment was healthy, also benefiting from an easy comparison with second
half of 2011. Though our revenues were in line with our guidance,
adjusted net-income fell short of our target due to certain one-time
payments and charges in the quarter,” commented Mr. Simon Ma,
Camelot’s Chairman and Chief Executive Officer. “We believe
our business remains fundamentally solid though we continue to work
within a continuing sluggish
macroeconomic
  
n. (used with a sing. verb)
The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors.
 environment.”

Fourth-Quarter 2012 Financial Results

Net revenues for the fourth quarter ended December 31, 2012
increased 20.4% to $71.9 million from $59.7 million in the year-ago
quarter.

EAS net revenues increased 7.0% year-over-year to $42.7 million in
the quarter and also increased 2.0% from the prior quarter. The increase
in quarterly EAS net revenues was primarily due to strength in most
sectors, offset by lower revenues from the Resource & Energy and
Manufacturing & Automotive sectors. EAS net revenues amounted to
59.4% of total net revenues in the quarter. FIS net revenues increased
47.3% year-over-year to $29.1 million and increased 38.0% from the prior
quarter. FIS net revenues accounted for 40.6% of the quarter’s
total net revenues.

Cost of revenues increased 27.7% to $55.9 million from $43.8 million
in the year-ago quarter. Adjusted cost of revenues increased 27.8% to
$55.7 million from $43.5 million in the year-ago quarter. Adjusted cost
of revenues excludes $216,000 of share-based compensation expense and
$32,000 of acquisition-related intangible expense.

Gross profit increased 0.2% to $15.9 million from $15.9 million in
the year-ago quarter. Adjusted gross profit increased 0.3% to $16.2
million from $16.1 million in the year-ago quarter. The gross margin was
22.2% in the quarter, as compared to 26.6% in the year-ago quarter. The
adjusted gross margin was 22.5% in the quarter, as compared to 27.0% in
the year-ago quarter.

Operating expenses

 were $25.6 million in the quarter, as compared to
$19.3 million in the year-ago quarter. Adjusted operating expenses were
$19.7 million, as compared to $17.3 million in the year-ago quarter.
Operating expenses increased faster than revenues year-over-year due to
compensation in exchange for shares in a subsidiary, bad debt expense,
and other one-time expenses. Adjusted operating expenses exclude $1.6
million of share-based compensation expense and $403,000 of
acquisition-related intangible expense.

Operating loss was $9.0 million, as compared to an operating loss of
$3.2 million in the year-ago quarter. Adjusted operating loss was $2.8
million, as compared to an adjusted operating loss of $1.0 million in
the year-ago quarter.

Net loss attributable to Camelot for the fourth quarter of 2012 was
$10.6 million, as compared to net income of $0.5 million in the year-ago
quarter. Adjusted net loss attributable to Camelot for the fourth
quarter of 2012 was $4.5 million, as compared to adjusted net income of
$2.7 million in the year-ago quarter. Adjusted net income includes $3.9
million in compensation received in exchange for shares in a
subsidiary.

Full-Year 2012 Financial Results

In 2012, net revenues increased 11.9% to $254.1 million from $227.1
million in 2011. Revenues in the EAS business line in 2012 were $165.1
million, an increase of 3.7% from $159.2 million in the prior year.
Revenues in the FIS business line in 2012 were $89.0 million, an
increase of 30.9% from the prior year. Gross profit was $62.0 million in
the year, as compared to $59.6 million in the prior year. The gross
margin was 24.4% in the year, as compared to 26.2% in the prior year.
Adjusted gross profit was $62.4 million in the year, as compared to
$62.7 million in the prior year. The adjusted gross margin was 24.6% in
the year, as compared to 27.5% in the prior year.

Operating loss was $39.0 million in the year, as compared to an
operating loss of $43.1 million in the prior year. Adjusted operating
income was $7.8 million in the year, as compared to $13.0 million in the
prior year. The adjusted
operating margin

 was 3.1% in the year, as
compared to 5.7% in the prior year.

Net loss attributable to Camelot was $40.5 million in 2012, as
compared to a net loss of $40.8 million in the prior year, or a loss of
$0.91 per diluted ADS as compared to a loss of $0.91 per ADS in the
prior year. Adjusted net income attributable to Camelot was $6.2
million, or $0.14 per ADS in 2012, as compared to $15.3 million, or
$0.34 per ADS, in the prior year.

Balance Sheet and Cash Flow

As of December 31, 2012, the Company had $95.5 million in cash and
cash equivalents, short-term investments, and term deposits, as compared
to $102.4 million in cash, cash equivalents and term deposits as of
December 31, 2011. The decrease was mainly due to a $40.4 million net
loss, a $14.8 million increase in
accounts receivable
 n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business’ problems in paying
, $11.0 million in

repayment

 of bank borrowing, offset by $35.3 million in maturity of time
deposits, $6.6 million of
impairment

 of goodwill, and $29.6 million of
impairment of intangible assets in 2012.

In the fourth quarter of 2012, the Company did not
repurchase
  
tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es
To buy (something) again.

n.
The act of buying something that one previously sold or owned.

Noun 1.
 any
shares.

Days’ sales outstanding[2] (”
DSO

“) were 180 days in
the fourth quarter of 2012, a decrease of 26 days from 206 days in the
prior quarter.

Employees

The Company’s
headcount
 or head·count
n.
1. The act of counting people in a particular group.

2. The number of people counted in this way.

Noun 1.
 increased to 6,085 as of December 31,
2012, which included 5,343 information technology (IT) professionals,
versus 5,966 total employees and 5,230 IT professionals at the end of
the third quarter. Of the IT professionals, EAS employee headcount
numbered 2,289, and FIS employee headcount numbered 3,054.

Conference-Call Information

Camelot senior management will host a conference call at 8:00 a.m.
(U.S. Eastern Daylight Time) / 5:00 a.m. (U.S. Pacific Daylight Time) /
8:00 p.m. (Beijing /
Hong Kong time
) is the time in Hong Kong. The time is UTC+8 all year round.
) on
Friday
 see Sabbath; week.


Friday

young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe]

See : Servant
, April 26 to discuss the
Company’s fourth-quarter and full-year 2012 financial results.

The conference call may be accessed by calling:

Passcode: 72459964

Please dial in
approximately
  
adj.
1. Almost exact or correct:

2.
 10 minutes before the
scheduled time

 of
the call.

A replay of the conference call may be accessed by phone at the
following numbers until 11:59 p.m. Central China Time on May 3,
2013:

Passcode: 98510217

A live webcast of the conference call and recording of the
conference call will be available on the
investor relations

 page of
Camelot’s website at www.camelotchina.com.

USE OF NON-GAAP FINANCIAL MEASURES

To supplement the unaudited
consolidated financial statements

 presented in
accordance

 with U.S. GAAP, Camelot uses the non-GAAP
(“adjusted”) financial measures of gross profit and margin,
operating expenses, operating income and margin, net income attributable
to Camelot Information Systems Inc. and margin, and
diluted earnings per
share

An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of
 and diluted earnings per ADS, which are adjusted from results
based on U.S. GAAP to exclude impairment of intangible assets,
impairment of goodwill, share-based compensation, acquisition-related
intangible amortization, and changes in fair value of
contingent

 consideration. The non-GAAP financial measures are provided as
additional information to help our investors compare business trends
among different reporting periods on a consistent basis and to enhance
investors’ overall understanding of our current financial
performance and prospects for the future. The non-GAAP financial
measures should be considered in addition to results prepared in
accordance with U.S. GAAP, but should not be considered a substitute for
or superior to U.S. GAAP results. In addition, our calculation of the
non-GAAP financial measures may differ from the calculations used by
other companies, and therefore comparability may be limited.

STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION

The unaudited financial information set forth above is subject to
adjustments that may be identified when audit work is performed on the
Company’s year-end financial statements, which could result in
significant differences from this unaudited financial information.

ABOUT CAMELOT INFORMATION SYSTEMS INC.

Camelot is a leading domestic provider of enterprise application
services and financial industry information technology (“IT”)
services in China, focusing on the high end of the IT value chain. The
Company is the largest domestic provider of SAP-based
Enterprise
Resource Planning

 services in China as measured by 2010 revenue and by
the number of
SAP
 fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells.
 consultants as of December 31, 2010. Camelot also
ranked as number-one in the banking testing market in 2010,
according to

prep.
1. As stated or indicated by; on the authority of:

2. In keeping with:

3.
 IDC. Camelot also operates in other areas of the Asia Pacific region,
including Taiwan and Japan. The Company provides services to a wide
range of industries, including
financial services

, resources and energy,
manufacturing and
automobile
 self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of
, technology, as well as
telecommunication

,
media and education.

SAFE HARBOR

 

This press release contains statements that may constitute
“forward-looking” statements within the meaning of Section 27A
of the Securities Act of 1933, as
amended
  
v. a·mend·ed, a·mend·ing, a·mends

v.tr.
1. To change for the better; improve:

2.
, and Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in the U.S.

Private Securities Litigation Reform Act

 of 1995. These forward-looking
statements involve a number of risks and uncertainties that could cause
actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or

implied

 by these forward-looking statements. A number of factors could
cause actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following:
the Company’s growth strategies, the Company’s ability to
attract and retain skilled professionals, the market of IT services in
China, the wages of IT professionals, the Company’s ability to
serve, retain, and attract customers. Further information regarding
these and other risks is included in Camelot’s filings with the
U.S. Securities and Exchange Commission, including its annual report on
Form 20-F. Camelot does not undertake any obligation to update any
forward-looking statement as a result of new information, future events
or otherwise, except as required under applicable law.

– financial tables follow –

SOURCE Camelot Information Systems Inc.