Half Year 2021 CLPS Inc Earnings Call
Hello, everyone welcome to the first half of fiscal year, 2020 One earnings conference call for the C. L. P S.
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Please note that today's conference is being recorded at this time I would like to turn the call over to Mr. Ron could be true from C. L. P. S Investor relations for opening remarks and introductions. Please go ahead.
Okay.
Thank you operator, Hello, everyone and thank you for joining us on today's call. The L. P. S. Incorporation of analysis for tap of fiscal year 'twenty 'twenty, one financial results earlier this morning unheard.
It's really easy now available of the company's IR website at Www Dot fire. That's the L. P. As the global debt home before we continue. Please note that our discretion of today may include forward looking statements made under the safe Harbor provision charge for the U S. Private Securities Litigations Reform Act of 1995 forward.
The statements involve the number of risks and uncertainties of such our results may be materially different from the views expressed today further information regarding the pace of risks uncertainties assumptions and other factors that could affect our financial results is included in our form 20-F filed with the U S Securities and Exchange Commission and the other.
Documents filed with the U U S ex U S easy in that respect I would like to read the following disclaimer I pick up all of the such statements third day of the statements made in our discussion today are forward looking statements within the meaning of the protection of section 27, and eight of the Securities Act of 1933 at the men.
And section 20, <unk> of the security of the change out of 1930 for I commend. The forward looking statements include statements with respect of the company's beliefs plans objectives goals expectations anticipations assumptions estimates intentions and feature of performance and it both known and unknown risks and uncertainties.
And the other factors, which may be the out of the company's control and which may cause the actual results performance capital older ownership for a chip mess 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. The those sorts of the surgeon piece related to the company's financial and operational performance in the first half of fiscal 2021. It is expect the expectations of the company's future performance of its preliminary outlook.
And kind of all for the ANZ discussion do all of the day rates that it's starting to describe any of the company's most recently filed the S reports and filings.
Reports are available upon request from the company or from the Securities and Exchange Commission, including through the S. E. T. The Internet website of www debt at the seed that we have the obligation that do not undertake to update revise or correct any of the forward looking statements. After the debate here, Rob or after the respective day.
On the which any such statements. Other whites are made all the information provided today is itself. The date of these calls and C. L. P. S undertake any obligation to update any forward looking statement, except as required under the applicable law with respect to any non-GAAP measures discussed during today's call the company of reconciliation.
Information related to those measures can be found the of the earnings release issued earlier today now allow me to introduce the management team breadth end of the call Mr. Raymond Lin Chief Executive Officer, and director of C. O P F.
Start off the call with a review of recent company developments and operating result.
Followed by Mr. Ray Young Chief Financial Officer of the Opiate, the Lps, who will discuss the financial results in more detail. Please note that all lines have been placed on mute to prevent background noise. Following management's prepared remarks, we will open up the call for a Q&A session. Mr. Li the Companys Chief operating officer.
Sir and Mr. Wilson, the Wong Executive Vice President of C. O. P. F will also be joined the Q&A session with that said I would now like to turn the call over to the Raymond Rami. Please go ahead.
Yeah.
Yes, okay.
Thank you operator.
Thank you all for joining the call today.
I'm very happy to be here with you and everyone.
The past year has been very challenging on many levels.
The COVID-19, and they may change the many of things so everyone.
As I say before COVID-19 will change our lives everywhere.
Okay anyway.
I Hope you and your family are safe and healthy.
And in here I want to say the thank you for the 19th category <unk> Oh.
Jensen and my IR teams and the staff and thank you to support I won't be the have the strong increase in men.
Thank you you all will go well.
Thank you.
Okay.
I'm price.
And now that our core business strategy has been the Bali, Inc.
The Linda.
We are friends of the on the financial results for the first half of the three total year 'twenty.
Thank you.
You showed the early this morning.
Our revenue increased by 37 per se.
What are called the new debt.
For our I D.
Yes.
So that's the way enhance the our operating efficiency.
The operating income.
Secondly, the increase debt right.
Got it.
The 14%.
The net income also increased by 115%, which results for the U S dollar zero plus three.
And the earnings per share.
There is the compare with the U S dollar sales upon.
One seven right at the end.
The road the earnings per share all of the same theory of the last years.
He was the appeal it.
We have been.
Yeah.
The graph in the global education.
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She has been our golf.
Yes.
Taxes the right.
That's the case.
The.
54% credit revenue.
Generally the outside of mainland China.
Yeah, I won't call business for you.
The more partnership during the past hearings.
Right.
Got a partnership agreement with China led the company. The company is the specialized use the loan management system in the banking area in the China market.
So part of it too.
It's for global market opportunities as well.
Xenon.
We also opened.
And I E series of agreements with the largest.
Oh, sorry.
In China.
The debt.
I work for each day.
In the automotive industry.
The.
We have partnerships with the one of the because of the lobby.
The manufacturer.
Shanghai in China.
We utilize the.
The technology in the project will be used.
Driver of lesser.
Neil.
Energy costs and the <unk>.
I would gauge the system.
Yeah.
In terms of the lachman.
The Diversifies our business school.
We went through the robotics technology.
Fox penetrate in the chip industry.
We also investing in Guangzhou to your total company. So it's for all of our.
For the opportunity.
The telecom industry.
Total media pinball area.
Yeah.
We acquired the remaining 60% ownership stake in the REIT, Inc. Thinkable.
Okay.
The ball.
So that's where our headquarter.
That's the wholly owned subsidiary.
Richard the Nepal, where and Abel.
To fully integrate our debt in southeast Asia.
Which we have heard the advanced our global expansion.
Of all the screening.
We have been and will always focus on developing and mentoring me the top talent from pricing.
The other to meet the demand for our global clients.
It's been our technical and with the screening.
Including the Singapore and Hong Kong.
Upon completion of the screening.
Qualifies for Iga tally.
When you ponder on our project.
The banking department.
Some deals in Australia for the company I think the call.
All of it.
And some of them has already done the hour kind of.
Well the are you feeling I'm very proud.
Tell you for.
For the.
15, yes.
Yes, that's true.
Sales of patterns.
Now did.
Did you agree with the all over the war.
Yeah.
The deep <unk> mine Nashville into the future.
If rents drop.
The.
Uhm.
I'm really really happy about that.
Yeah.
Wanted to no debt.
Hey, guys I love for you too much.
I'm very proud of you.
Looking forward.
We will continue to provide high quality of ICU surgeries for the guidance.
We can lead the tool.
The voting system.
Did your total translation of MAU our clients.
This is to improve their productivity.
The efficiency.
In addition.
We will continue to invest in new business new products.
The new technology.
We will continue to provide high and good evening.
The in technology and business.
And based on our size of NUPLAZID.
This does end our Zim line Ross.
Strategy.
We are bullish on the for.
From what they did and the other to reach our goals.
For the reminder of.
First of all year.
Cause you want.
Yeah.
No.
I would like.
The total of the call over to our CFO Richard of Yahoo.
A few of tell you about more of our financial results from the first off of freeze of all yet.
You talked to your line.
Please go ahead.
Yeah.
Thank you the model.
You all of a part joining today's earning call.
I'll now provide an update on our financial performance from the reporting period.
And all of that numbers provided I E. The LNR.
And that all of compilations Amit.
Oh are you of basis.
In the first of half of physical plans based on the what our revenue segment.
The person who's taking a part of the 3 million from 42 upon the stakes meeting the.
Inquiry to revenue it was mainly due to an increase in revenue from consulting services.
In particular.
From Ikea can probably stomach the.
Absolutely.
The one positive person so they've been seven plus the one meeting from 41 6 million. The increase was due to increased demand from existing and new clients.
Revenue from the customized solution services.
<unk> one per 1% for.
One 1 million from their part of the 7 million for the increase was primarily due to increased demand from.
Existing clients in the thank you and the wealth management area.
Revenue from other sort of basis.
On the final policy, the person, who they'll probably true, meaning some day upon the screen.
The decrease was primarily due to increase the demand for other services, including Huntington.
That's the revenue yields by our 310 of.
And about the revenue by geography.
Revenue generated from all of that none of the China.
They've been great partners of 9%.
Big part of the $6 million from for part of the screening the Inc.
Inc. With you revenue generator of the pump outside many of the trial.
Reflects the company's successful and consider the global ex pension.
The op 20 closet for president.
$18 5 million from $13 4 million.
As for operating expense.
Saving and marketing expense.
One day stay one seven per cent to $1 8 million from one 4 million. The increase was due to the inc. With outside of it but its not that.
For hired enabled all of the limitation.
Limitation of the Camry global equation.
As a percentage of total revenue sales.
And the marketing expense because of the two or three point of 1%.
The three three per cent the big Quake was primarily due to the inquiry operating loss of efficiency.
The result of economics of scale brought about by the company with global exploration target.
Research and the rapidly on the expense of 22 causes of 7%.
Fixed for the 2 million from five gallon.
The increase was primarily due to a waste of Andrew Lessman personnel related expense, which enable the comp on the company continued the R&D effort.
Big data cloud the computing.
Through the process automation that's R. P M.
Please show entirely group AI as of.
A percentage of total revenues.
Research and the weapon in the expense because the two Penn Plaza.
From 11, 8%.
The decrease was primarily due to the increase in operational efficiency and the law.
All of economics of scale.
And on the striking down 16 called the 1% for thick column of the 6 million from seven 9 million as a percentage of total revenues.
And on the Ministry of you expose the caused to 11, 4% from.
The aging part of the stake Buxton.
The decrease was primarily due to the inquiry.
All of it basically as of.
The result of economics of scale and the way from Matthew.
And they quickly in general and take your personnel expense.
As a result of the operating.
Operating income up.
200 and searching.
So I can call the 5%.
The sleep Pons 9 million from $1 two meetings of the.
The leading Martin what they call the sale of 1% compared to two upon the 9% in the prior year period.
Total other income net of other expense.
The true one plus 1 million from $1 3 million.
Net income of 100 and the 14.
The 9% for the $9 million from two upon the three new <unk>.
Excluding the impact of noncash share based compensation expense.
Non-GAAP net income.
My view of one 2% two six points for meeting from three point from me.
After excluding the impact of Noncontrolling interest.
Net income attributable to the L. P of clean Colorations shareholder in the.
First the half for physical 'twenty 'twenty, one what's the.
For the $9 million.
The <unk> they'll upon the story per se.
And the loyalty of the share compared to net income I'll tell you the approach with the L. P. S Inc.
Politians Yahoo.
So upon for meetings all day, all part of the one seven basic and diluted earnings per share.
After excluding the impact of noncash share based compensation expense non.
GAAP net income attributable to the L. P F and collaborations share holder in the first of half for physical funding can be one what's the point of for me Dale Ponder the stream nine basic and diluted share Inc.
Compared to a non-GAAP net income our total pull through of co op income.
Rachel to hold Oh wait for the for me.
The old pardon for basic and diluted earnings per share in the prior year per run.
Also the sandbox breaking the one consequently, we have of course and of course well correlate.
Plenty of $6 million compared to volume.
And then moving all of the cool dozen funds in terms of.
All of December 31000 tonnes a day.
Total number of employees.
In the thousands of them.
The hunger and important part of.
<unk> filed for some key Oh, yeah.
Looking forward for free.
Of course scientists from day one.
Probably the total sales will fill the range of ophthalmic segment of 235 per cent compared to the physical yes from the time, Inc. Financial results.
The non-GAAP net income growth.
In the woods.
On the play Big play grew 65 per cent from pledging to 2000 for one person.
The craziest place for cockpit is a company that's on the hop on for Ya for physical plenty of time for your for muscle report.
The forecast is subject to change the size of backpack mentioned, our R&D revenue.
This concludes our prepared remarks of later, we're now ready for questions.
Thank you, ladies and gentlemen, if you would like to ask a question on today's call. Please signal by pressing star one on your telephone keypad. If you are using a speaker phone. Please make sure to turn off your mute function to allow your signal to reach our equipment.
Once again star one to ask a question, we'll pause for just a brief moment to allow everyone an opportunity interest signal for questions.
We will now take our first the question from William Blair.
Of the Greenwich Global.
Please go ahead.
Hi, Great results can you talk about what's driving your revenue growth and your ability to continue to win new clients.
Yeah.
Okay.
Yes.
I think the.
Hello Arena every day.
Good day.
For our checklist.
Okay. Okay no problem the first of all.
The central for instance.
Hello.
Yes.
Okay first of all of that.
For instance are actually all of our rapid growth and all of them.
Relative to the new clients.
Really driven by all of our competitive advantages we maintain stretched.
Instrument, well known global clients in banking and advanced management E Commerce, and the automotive industry.
As mentioned by a return of just not all of the CFO. We also have of modern series. Those are the 301 class of human capital base the style lingo for a multi lingual capabilities.
Of which majority of them.
And the Lynch, our professional training programs.
So this is for you assure all of a success.
The jewelry to our clients.
In addition, our highly experienced management team also maintains operational progress and the technology co innovation.
All of these until they meet.
The attract new clients through our global price.
Yes.
And what's equally the continuously hence all of the IHG the surveys such as the kind of <unk> and the kind of.
The <unk> the solution.
And it's also driven by our IP of innovation through our innovation lab.
Might see kind of few of ice technology like the IPA.
A big data cloud and the <unk>.
Thank you.
Okay, Great and then over the last few years.
You've continued to grow in China, but also expand in the rest of Asia and the U S. Do you have the target mix of where you're one of the yet for the.
The different region by the end of this fiscal year or even the next fiscal year.
Okay. Thanks, a lot of the cycle question for.
For the forecast of revenue distribution by geography, although the help too aggressive for the more visible in the overseas market financial and operational wise, our business in the mainland China still significantly contribute to our growth.
But on the other hand, our global exploration graduate Inc has been effectively implemented for the.
The first of a piece of code plenty of time to one the revenue.
<unk> generated outside of China.
When you think of like inquiry Goodbye.
So a part of the 9% to thick column of $6 million.
The allowance for part of them of the total revenue compared to 10, 1% in the play of Peerless.
Going forward the company ex Tac ops and the material acquisition on Mountain Co Inc. Transaction for the revenue that will be generated from outside of the mainland China, including from the U S.
Our plumbing play, perhaps put them for the whole year of physical Huntington, the one and the ex beckman with them the crawl physical upon the tenant too.
Let me see problems that they include luminaries deals and then May stop dead for a change.
Yep.
Yeah.
Okay, Great and then last question do you have any specific brands that you can disclose the bulk of the cash you raised or even generally how you plan to use the to furthering the growth.
Okay, Hi, Ramon.
As of the.
Yes.
Can you repeat the question sorry.
Yes, do you have any specific plans for the.
The cash you just raised or even just generally how you can use it for further growth.
Yes.
I'll take the questions.
Questions of Raymond.
Yeah, Okay from all key.
Type of those type of the race.
Your hubs for our global expansion strategies.
The work along with all the well known global clients sell them element.
E Commerce automobiles of the.
Price and most.
The <unk>.
Since.
I'm Gonna Inc.
Turning off of IV <unk>.
And also the people flow.
As the.
You mentioned all of them.
And then in China the company all of football.
Expansion of the income.
As for the market right.
He said the Singapore, so that the.
The reason.
Precision.
We remain in 'twenty or equity stake.
So that will allow us to penetrate the it services market in the neighboring countries.
All of these things.
Asia Pacific regions.
On top of bed growth plan to rollout.
The business in the U S.
So that leaves.
Just thought through the new contract from our second.
Hi, Chris.
Yeah always headquarter in the Delaware for moving forward.
So if you're putting more such.
That's my first and that's for sure.
But for that the.
Capital debt total cash that the race.
Definitely.
Concentrate.
Uh huh.
Moving.
And the spending.
I imagine the months.
Okay, great. Thank you.
Yeah.
Yeah, Yeah, Dcs for a day.
The direct operating we have the accessible a close the at the $60 million worth of breakouts of direct operating price at six per share matched to a plenty of Honeywell.
Okay.
Thank you we will now take our next question from Melissa.
Please go ahead.
Okay.
Congratulations on the El Nino.
Hum price from <unk>.
Well the U S.
However, our price no.
You can't disclose the name of the base case, that's all my pet checks.
Okay.
Okay, I'm sorry, the crushers.
Thank you the.
The pressures due to the cash.
Half of it doesn't agree Olympic for industrial P. S O.
Chris two of these CRO search any information.
That's just the dose the stacks.
Mentions in the press release is also true.
Our long term business relationship with the two of.
Which we were in April.
So for our continued growth.
In return we will.
Creating more value for our shareholders.
Additionally, our U S channel so I have the.
The revealed Inc.
The contours of the contract.
Of the press release.
And sure that we follow the terms.
Our visuals.
Much of it.
We have the aggressive with our global expansion.
We are looking for sort of gain more business opportunities.
From the overseas market.
So I'll take the weight major power Archie is the true even from our shareholders and market of all significant news about the company.
Thank you.
Yes.
Thank you we will now take our next question from Ben Please.
Please go ahead.
Okay.
Congratulations on your outstanding financial performance, However, the market price for it.
Outside of the mainland China, what the.
That's a joke the handle the global expansion.
Wilson can you help me to answer the other question creates MRSA.
As mentioned earlier in some of our.
Sure.
Global of strategies.
China.
And all of that we already have acquire.
100% interest.
Singapore is a muscle.
Most of our base in Singapore.
Hi, Tim of test that debt.
The bonds for our IP services.
Singapore S. The all in this region so the.
The reason.
As of the same on the remaining 40% share of it.
Line yet.
So that will how much true penetrate the ICT services.
Yes.
Our.
People are paying per se.
The blood in the nearby.
Please.
Pacific.
Net income.
So.
All of Christmas in the U S as mentioned earlier.
Uh huh.
Talk to me.
Christmas Entre for mobile.
The assisted client per se.
All of the patient.
So that will give us.
Neil and we're moving forward.
The opportunities.
The number of Christmas at this whole thing at the restaurant.
Right.
And.
This.
For the stack.
The strategy is fundamentally sound.
And now of the book into our financials.
The highlights of by our CFO.
Thank you.
Okay.
Thank you we will now take our next question from Jim Lynde. Please go ahead.
Hello.
Hello Management team Center for taking my question. My question is how does your opex growth.
Fitbit by the COVID-19 pandemic.
Okay.
Hi, Henry.
Yes.
Sure. So I would like to take the question essentially all questions.
Actually.
Although we have been aggressive to be more visible in the oversea market financial and the option of rush hour <unk>. The amendment channel continues contribute to our growth.
So I saw the I'll call it 90.
COVID-19.
And then make when Hana ex quickly recover from COVID-19.
The next.
In fact, it's not greatly.
And of the industry.
We have the technology to market.
The mind share.
As the pandemic the.
Small businesses and the progress were moved to China.
So globally speaking to ensure the safety of our employees.
Some of them are ya.
Coverage for our clients to work from home.
Thank you.
Thank you we will now take our next question from Lucy Huang. Please go ahead.
Thank you operator first of congratulations on the strong financial performance and the my question is could you give more color on the economics of scale, how does any of the improve your operating efficiency. Thank you.
Okay. Thank you for your retail channel.
Yeah, Yeah as you all day.
Yeah.
Yeah.
Or any of our business.
Our top line revenue also increased the also needed to hire more employees to support other growing business as the.
Reflected in our expense on the.
The other one hour. Thank you Taylor.
Or is it.
A lot of Gilead has been able to meet more demand from our clients.
The test data in the quick expense as a percentage of total revenue ratio as.
The results we've generated a bad in the bottom line, Richard will provide more value to our shareholders.
Is that the Oh, thank you.
Thank you we will now take our next question from solid Zhu. Please go ahead.
Yeah.
Solid Q. Your line is now open. Please go ahead with your question.
Hi, everybody.
Yeah.
My net and my quick changes.
Okay.
What's the reason for the Jets to non-GAAP's net income Macquarie for all cash.
Thank you.
Okay I will take the days question. Thanks for your question.
As a result of strong demand for items, though it is from our growing network of clients and enhance the operational efficiency. So we have adjusted our non-GAAP net income forecast for the fiscal year 'twenty 'twenty, one to 682 of six 5% from 13 two of <unk>.
The 1%.
Yes, that's all thank you.
Thank you we will now take our next question from Alice Zhang. Please go ahead.
Yes.
The question to CFO.
Do you recognize the revenue.
Yeah.
Oh. Thank you. Thanks, a lot of oil question.
As for time and expense basis contracts. The compounding is reimbursement of the actual already incurred at <unk>, Oh, great negotiated hourly billing rates.
But the revenue from take the price cut of my slides the solution contracts.
For the company to perform services for system design planning and integrity of gene based on customers that make me, which required significant the production and the customization.
The crowd the customized tailored it's generally less than one year upon delivery of the services customer acceptance is generate repaired in the same contract. The company is generally the player to provide post the concept personal support for.
The PLO from straight months, Hawaii or after the cost of my application with <unk>.
Yeah.
Oh for your questions. Thank you.
Thank you we'll now take our next question from Kathie Lee. Please go ahead.
Thank you my question is for the the CLO.
What's your H among your competitors.
Thank you.
Hello, Henry your question.
For Ya.
Thanks.
I'd like to take the current certain sense of oil.
Sure.
Italy Crts sbe in the.
15 years and the industries the bill.
The net.
Thanks for the Chief NIM, providing high quality utilities.
One of our great advantage.
All of our competitors.
Edition, our focus and the declines of international companies in the.
Financial and the type of analogy sectors. So those side of the IH among our competitors. Thanks.
Thank you we'll now take our next question from Jason Wang. Please go ahead.
Okay I will quote you the votes for all of you see our revenue outside of the mainland China 10 day doing these true.
Okay. Thanks for your question the <unk>.
Revenue generated outside of the amendment of the China has significantly increased the buy fitness right from the 9% to six 6 million. Thanks to our successful in the <unk>.
<unk> patients and the continued global expansion strategy the egg.
The revenue generated outside the amendment, the China comes from Hong Kong, Singapore, India, Japan and Melissa.
So that's our thank you.
Thank you.
Thank you there are no further questions at this time I would like to turn the conference back over to Mr. <unk> for any additional or closing remarks. Thank you.
Please go ahead for the closing remarks.
Yes, Okay, then go wrong.
Peter.
Thank you the.
Thank you for your question.
Thank you again for joining us on today's call.
And we calculate your ongoing support and we look forward to updating you on our progress in the week.
Anthony.
Have a good day everybody. Thank you. Thank you very much.
Alright, thank you.
Bye Bye bye. Thank you ladies and gentlemen. This concludes today's call. Thank you for your participation you may now disconnect.
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