Second Half and Full Year 2020 CLPS Inc Earnings Call
Hello, everyone and welcome to the second time I'm still your fish go Twentytwenty comps.
I see okay.
Incorporation.
Please note that this conference is being recorded.
<unk> objects trying to call over to Mr. Lucky.
C O P S Investor relations for opening remarks and introductions. Please go ahead.
Thank you operator, Hello, everyone and thank you for joining us in today's call.
Trying to now second half and full year fiscal 2020 financial results yesterday.
No all of the Companys website at <unk>.
I'll tell you that I heard that you will be asked globally.
Global color before we continue please note that our discussion today may include forward looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation reform.
1995 <unk>.
Mr involve a number of risks uncertainties as such our results may be materially different from the views expressed today further information regarding these risks uncertainties assumptions and other factors that could affect our financial results is included in our form 20-F filed.
<unk> Securities and Exchange Commission and other documents filed with the U.S. FCC.
With that I would like to read the following disclaimer applicable to such statements.
Statements made any discussion are forward looking statements within the meaning of protection. So section 27, eight and the Securities Act 90, I'm, sorry, sorry, I'd amended and section 20 Onee of the Securities Exchange Act.
34 as amended forward looking statement.
Forward looking statements include statements with respect to the Companys beliefs plans objectives goals expectations, anticipations assumptions estimates and patience and future performance and involve known and unknown risks uncertainties and other factors, which may be beyond the company's control.
The actual results performance capital ownership or achievements of the company pretty materially different from the future results performance or achievements expressed or implied by such forward looking statements. All these statements attributable to watch expressly qualified in their entirety by this cautionary notice including without limitation those.
These risks and uncertainties related to the company's fine I show the operational performance in the second half and full year of fiscal 2020, its expectations or the company's future performance gets preliminary outlook and guidance called for it in this presentation as well as the risks and uncertainties, describing the Companys. Most recently filed the FCC reports and.
[laughter] such reports are available upon request from the company are from the Securities and Exchange Commission, including through the FTC Ethernet website at Www Dot as he sees that club, we have no obligation and do not undertake to update or revise or correct any of the forward looking statements. After the date hereof or after the reset.
Good day trying to reach any stake any section speaking that's otherwise from Maine. All information provided today is oh the date of this call.
Yes that does not undertake any obligation to update any forward looking statements, except as required under applicable law with respect to any non-GAAP measures discussions during today's call. The company a reconciliation information related to those metrics can be found in the earnings release issued yesterday.
Now allow me to introduce a management team on the call today Mr., Raymond Lin Chief Executive Officer, and director of C. O P. S well start off the call with a review of recent company developments I'd up or.
Trading results followed by at least three young acting Chief Financial Officer of C. O M. P. S who will discuss the financial results in more detail. Please note that all lines have been placed on mute to prevent background noise. Following managements prepared remarks, well open up the call for Q and a session when Easter Henry Lee the company's chief.
Operating officer, and Mr. Wilson Wong Executive Vice President with C. O. P. S will also be joined the Q and a session with that.
With that said I would know like the turn the call all were to Raymond Raymond. Please go ahead.
Yeah.
Hello, then go wrong Hello, everyone I want to say, thank you for being here walks todays call well.
Well appraised.
So what have you drawn.
Gotcha.
Our second quarter and full year EPS right. So you can be resolved.
Great.
That concludes our results uncertainty with solid results.
Well then they all fall what do you think <unk> sanjeet.
Increased revenue.
We lost Oh, what guidance we thought.
Lucky, 7.7% increase legal yet how did you come to be revenue.
I was told <unk> chip, we did sites and the additional international and domestic side.
So all those people.
Asian, Austin <unk> global expansion strategy.
That's about all I was 40 cents overall strategy we border.
Our grain in the South East Asia region.
Well I could say jump off rebates.
That you've got the ball I he submits company.
Which we used to be a long.
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To see up yet simple.
In addition, we have published.
Yes on the phone you reach well because that's all in the U.S. market to support the Companys business School.
Let's put it so it was just one off I will call dependencies.
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And then can you talk some best company.
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10.6 million, although yet and cooling 30.
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The company had research and development Center.
So with that Rick research.
Okay shut off you know vision technologies, which enable digital transformation for <unk> <unk> and outside.
We have touched the pilot that cutting edge technologies.
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Lesion.
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Oh, that's but Oh, no I want to see.
Well I want to be talent.
GBP 10 trillion posts.
We continue to focus on.
I was on Oct screening I was well do you.
Do you know what time I between our human capital.
We have almost <unk> with that I'll, just go and higher Education Institute.
Hong Kong.
Well first it's great that you call me jumping on energy.
I'm going to maintain.
I'm getting a bonus pool off Neil <unk> and young talent.
It's not that we didn't go in Nike argument.
Yes, yes last strategy remain a threat.
We reference.
I wont say its own country continue my name is Oh well.
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1.7%.
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During these challenging.
Oh, So we continue to make long term you last month <unk>, how about going to need a ball we read.
We remain optimistic.
About our future.
We got 40 cents already and then you called it expands our global footprint.
Yes, yes.
That's on digital transformation and create value for our shareholders.
No.
I will turn the call to <unk> the friendship.
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Well. These are these cost outs finance ob so they've done.
And so yeah awesome results I'm trying to eat right. Please go ahead.
Right Great go ahead.
[noise] Hello, everyone.
Thank you for being here for today's call.
I will now provide an update on our financial performance some of the reporting year. Please note that I'm not clear why did a U.S. so a lot of times.
That's a continuation I might Oh, yeah, Oh, yeah.
Huh.
And Oh second half fiscal kind of time to resolve.
Okay, Oh fiscal can decline.
Our revenue increased by telcos to sell them all.
All right.
1.2%.
So what do you think on that.
So to follow up on the one meeting.
Included in revenue or whats nice guilty I encourage you I don't know I can you can talk about that.
Oh no.
Well I suppose [laughter].
Seven said like Oh, I thought I just solution either [noise].
Revenue from I think we've all done.
Of course, the bi that's one part of the family name all 14 to upon the three parts okay.
<unk> filed on the file meeting and Oh, well likely component to what percentage of total revenue.
Oh, sorry, so meaning.
Like in three parts to seven percentage of total revenue.
The English what do you want to include that.
For the time I can talk to that.
Oh and I'm not sure in Houston.
Well at least think about it.
Revenue from customized solutions.
Decreased by 1 million, all fucking filed calling to 4% so what I'm, calling the one maybe talk on the one meeting.
They could I want to cry like steel toed did quite well.
He's gone class [noise].
Well I don't know I less than they did in Kuwait the tool no peninsula told meaning no.
Now called the deal flow, meaning.
By geography.
Yes, generally to the outside a minimal China increased by God.
Got it and pumping junkie.
Total fix homeless raise money in the second half Oh physically are tiny tiny follow swimming in the prior year period.
The English you watch on the weekend outside China leased locker the tiny successful.
He was global expansion that's tragic [noise].
Gross profit increased by 3.2 million Oh, I may follow up on the one facility. So based upon the same I mean.
On the fixed cost.
Gotcha.
In the second half Oh. Please go find me, partly because the pool. So I guess I'm a fixed costs don't change compared to two so James Dix, calling them I put them in the prior year period.
They could in gross margin was quite low and I do want to include scheme.
Hi, Michelle.
That could be done Nigel outbreak.
As for operating expense saving My school. So of course, the by now can hardly at all so I can say one called the Super sensitive. So one caused several one called told me the increase was due to the increased salary expense.
As well.
Well higher.
The implementation of the company's global expansion strategy.
HM.
Of course, the buys their open all night on the Standalone doesn't teach to 5.4 million.
Pardon me.
Inquiries treadlite, resulting from the problem is he's talking about Oh corneal research projects and the Companys continued ongoing efforts <unk> big data block chain I'm actually show in today.
General and administrative expenses increased five railcars. So told meeting all the so called the 7% to eight.
On the smoking AIDS on told me Oh, excluding the impact of non cash share based compensation expense.
<unk> GAAP general and <unk> expense increased by so called Flamini, all eight percentage to harp on the same I mean.
On the streaming.
English in non-GAAP <unk> expense was primarily due to an increase in personnel.
Personnel and the M&A related expenses as a result Oh.
Extension [noise] as a result of that.
Operating income was they'll probably <unk> funding compared to a loss of one called the Salem equally.
Operating margin was one called the nail percentage comp.
I had two not to file called the tool centric in the prior year period.
Subsidiaries and other income increased to 1.1 billion now.
Now called the one meeting.
Mission for income taxes inquiries to buy FFELP on how many turns out punk for me mainly due to the reduction you recalibrate lots as well as some of the Companys subsidiaries.
Net income for sale, Poland, I mean from a loss of 1.7 means the net income was due to the increase in now touch share based compensation expense.
Excluding the impact of a noncash share based compensation expense non-GAAP net income increased to buy so apart from Maine, All onetime guard nike's exposed to stay one percentage.
No sleep ponder cylinder, meaning.
One on the streaming after the impact.
The impact of non controlling interests.
Net income attributable to attribute to see Lps incorporation shareholder is still in the hospital stays cold tiny tiny once they're open to fix meeting all their open the door for basic and diluted earnings per share.
Excluding the impact of the noncash share based compensation expense non-GAAP net income attributed to seal Gifting Corporation shareholders in the second half of fiscal time, the timely one's sleep on file meeting all cell phones, so sweet basic and diluted earnings per share. This is compared to non-GAAP EPS.
Income attributed to Sylvia incorporation the shareholder Oh, one point on meeting all their upon the Dell eight basic and diluted earnings per share.
And now I will provide an overview of full year physical tiny tiny resolved.
For the year and even just checking Sunday timing revenue was inquiries to fight on default, Poland Bivens meeting all soaking say 1.7 percentage.
Hey, nice pull the flow, meaning from big schemes walk on the night.
Hi, Bob.
Oh got it necessarily like revenue from consultants, obviously includes the buys funding five upon assuming all 41.1%.
18th day, one on one meeting and a coffee the school like Houston and stay low.
I'm, calling file percentage of total revenue.
Something else.
Customized I, just allusions to others to the coast up by 1.2 million on 13, I posed to sway percentage to walk on ethylene from Sweden, meaning revenue.
Revenue from our that others do include the Bai they'll call. The streaming all 200, Nike ponds up now touch on kitchen tools that help on flamini Palmdale, calling the one meeting [noise].
Oh, the revenue by Joe.
Hi, Joe public they ran a larger and the way to the outside minimum the trial Oh inquiry into the phone so upon farming. So.
Haven't called the fixing it.
Gross profit increased by say when it comes to meeting all talking a lot of concern cage, so stuck in one on one meetings.
Poland 18 gross margin decreased to 34.8 percentage.
Actual second thing on the 6% to teach the increase in cost was.
Well, it's primarily due to the increased Oh I can't make a publication called the only the cobi can actually adulteration [noise].
As for operating expense.
Selling and marketing expenses increased the Bai they'll pulling them 9 million or 14 full voting on default percentage will sway polyone meetings too.
Pardon me.
Research and development expense.
Inkjoy subside so upon full meeting Oh, something called eight percentage food.
Today's call is performing well.
I mean generally.
General and administrative expenses increased by one other one meaning six percentage. So 16, calling the streaming from 17.4, meaning the increase was primarily due to the decrease so [noise] right, putting too many noncash share based compensation expense.
After that the talk show non cash share based compensation expense.
General and administrative Pizza Inc. course, the bar soap on one meeting all 20.5 percentage.
How many.
You mean.
Components, while meeting.
Non-GAAP <unk> expense was highly skilled I encourage you on schedule personnel and not seen an age related expense as a result of business that's the pension.
<unk> operating income was 1.3 million compared to a loss of 3.8 million in the prior year period.
Operating margin was 1.4% as compared to not to harp on H preferred.
Subsidiaries and other income includes the to talk on the phone, meaning from 0.7 meeting called <unk> <unk> income taxes or no point eightmillion compared to your airport.
Lastly, due to the reduction of re collarbone losses or some other companies subsidy.
The companys subsidiaries.
Net income was 3.1, meaning compared to net loss of 3.4 million in the premier pure.
The increase in net income was due to the Sikorsky noncash share based compensation expense.
Excluding noncash share based compensation expense.
Non-GAAP net income increased by 3.5 million all night games. They went on to say what percentage.
Nike's they went on to say what percentage they lump on the one meaning.
Upon the fix me after excluding non controlling interest net income attributable to see Oculus in corporation shareholders for the year and the Jewish soaking time, each one wants to upon now meeting all their open to a basic and diluted earnings per share.
Excluding the impact of noncash share based compensation expense.
Non-GAAP net income attributable share going to shareholders for the year understood Dunkin kindly timely was 6.9 million Oh, then O'connor will stay one basic and diluted earnings per share.
Compared to non-GAAP net income attributed to a CR P.S. in coalition shareholders of 3.7, meaning.
Oh, no Panera, two seven basic and diluted earnings per share in the prior year period.
At June surging 2020, we had cash and cash equivalents Oh.
Upon the 7 million compared to 6.6 million and spoke to starting Sunday night.
Looking forward for fiscal year 2021 faith, Bobby the total sales growth in the range of our products like 13% to two starting five percentage.
And non-GAAP net income growth in the range of punk some nice I think two person team to simply say what percentage.
Compare to physical you know 20 ton based on actual results.
This is Tom could lose our plane paired remarks.
Operator, we are now ready for questions.
[noise]. Thank you if you wish to ask a question about this time cheese signal by pressing star one on your telephone keypad Cheez. It showed that meet assumption on your telephone is switched off to allow your chicken go to meet your equipment.
Like in cheese Press Star one to ask a question.
Well pause for just a moment hello, everyone an opportunity to signal for questions.
And once again, but a star one if you wish to ask a question.
We can now take our first question from T. shirt size and Investor. Please go ahead.
Okay first of all congratulations on all your financials.
So yes.
And I would love to know what football Yokota searching going forward and what is the Hum.
Two other won't age or to know how the public cigars.
Okay. Julia question Me Scott.
She L.P.S. strategy some Eritrea the nights, we were waiting for our strategy.
How are you going to go for the global each technician. We were told you the set up the new company.
Oh overseas mobile do you want to.
To that end at night, because agents, who are quiet some institution.
Nicole Bob.
We are using this tool attacking the new crop.
For the <unk> session.
Individually we continue so.
I G SIB.
It does and distribution.
Well, it's a good.
It's a good time and potential clients globally.
Okay and.
We also drive the idea really shines right.
Indeed, the company, we U.S. popping it.
Cutting edge technologies just light.
Good.
Well, that's a automation data.
Okay and child.
Maybe one off I won't call Bull vibrant culture.
And me.
Sure.
Well, we view the OFS lesion cheap.
We paid our ball.
Also we will attract qualified people and the people stop.
In the market to me.
Most are stronger ginger.
Oh pardon the expression needs a hobby the losses that yes, they do.
Uh huh.
And one other one pitch.
Okay.
Mm Hmm.
She appears.
Hi, Scott <unk> top them.
[laughter] price bubble the times.
It is a first class.
Yeah, the warrants stock he says.
And the second is on page heats up.
We have the work cost human capital base.
Plus we have money money Ah.
As many.
Many many professionals they.
Hey, Jeff.
Good English and Chinese.
Thank you bye.
My language people.
And also we have a large pool I G talent.
In a band and the banking wealth management and E Commerce autumn no taste that in this area.
And ER work, yes.
We have been managing bunch.
Management team.
Most of the manager.
Well.
Uh huh.
Well I guess over the five years, maybe attacking yes. This area. They would know how its menditto. Please young progress there we know how to do the you, especially if you work for the company.
For the company.
I know I want to say she is up we have that.
Is that.
Do you see people when you do go to do people get.
The key to the whole branch, but Alan equation pullback.
We can.
We recently, the new cable side.
Yeah, it's a industry and.
And I said that we continue to see that.
So tobey higher level thoughts.
It's a revenue.
Seats.
Oh, okay.
Okay. Thank you.
Okay. Thank you for the question.
Moko tool what you told me coal coal what about you once you all doing.
Okay. Thank you.
That's when you start.
[music].
Well, the well that night.
Nike.
No.
HM.
That's right.
Is it because you know the I. chief job I G.H. Walker most of the stuff can be <unk> and.
And.
The second thing is that the China are we talking about Fox into war so.
At this time, its most often Iowa.
<unk>.
I'd be normally what our price.
So we can see more lumpiness.
I'm not sure.
Thank you.
It's a bit too.
All right Okay Karen.
We can now take our next question from Mary Lynne Private Investor. Please go ahead.
Hello.
Yes.
History, it and manage it can't be okay.
Add here that he made change every day the next day.
Good for you.
Oh.
[noise], hi, I suppose that means.
Yeah.
Above all we are looking forward to for physical yard Sunday 21 rigs Baird told.
Sales growth in the range of approximately a 13% it will so do I hope at this stage.
And Oh.
Our growth strategy and we are confident that leave you a two hour gross rates in the next year or two.
[noise] [noise] and also about this full cost Oh, Oh, just reflects the combined Scotland and the preliminary built a wish I stop here to change and I'm happy.
To read because I'm and I'm certain days, including but not limited to potential accounting adjustments attributed to the dig acquisition as well as where graduates could announce I think is facing the company babies and operation as identified.
Our public Friday.
So some people Ah that's answer for your question.
And thank you okay.
Oh, well you know revenue tended to go well and then what would be the reason why your gross margin question and then secondly, Tom and if we get all the physical penny trending. Thank you.
Oh, yes, and your boil crashes yeah caused the decrease in gross margin was primarily due to the increase in EPS.
Maker prohibition cost the dorinda koby to Nigeria outbreak.
And as a house and if they pay I'll I'll I'll, our employees and their families as well as our customers and his father Lars I'll be on the view continues to be all by a top priority. We haven't taken pro graphics, I'm, sorry, I caution that right Mariner east.
Sure that our stop I protected against that that could be done lighting revenue.
Our bets to optimize our operations.
[music].
Yeah. So that's the reason for our gross margin.
All right. Okay. Thank you [laughter] and I have another question.
Okay.
About should do or can catch all okay company.
And Jay do you mentioned, there's sufficient found yet and it doesn't feel yes, and should get paid you didn't need it to rise more cash in the near future. Thank you.
[noise] Oh, okay about it crashes Oh cool good 13 plan the timing of the company has agreed to cash and cash equivalents and short term investments Oh, I'm, sorry, King Kong submitting compared to 8.4.
How many Oh Oh George.
George Doddington in Nike file the cash on hand, we see now for a while then operational however.
All our global expansion strategy do they need to rise capital for funding.
Oh sure Yeah.
That's are those things that get revenue.
[laughter]. Thank you. Thank you very much.
Just confused too many fish I would now like to hand, the call back to management for closing remarks.
[noise] already met please go ahead for the closing remarks.
That's okay no more questions.
Well thanks.
Thank you again for joining us on today's call.
And I.
Please.
Right Youre your ongoing support we look forward.
Updating you on our progress in the <unk>.
In the weeks and months ahead.
That's that's good day everybody.
Thank you.
This concludes today's call. Thank you for your participation you may now disconnect.
[music].
Yeah.
And.
[music].