CLPS Incorporation Announces Chairman's Letter to the Company's Shareholders --- "I am thrilled to discuss our streamlined strategy and development expectation for the rest of fiscal year 2021."
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Value. Grow. And chart...👇
Big data allows companies to create ever-narrowing segmentation, with tailored services to meet the client’s needs. In banking and finance, big data will become the core driver of future development.
https://www.clpsglobal.com/our-services/solution-services/big-data-solution
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CLPS is one of the largest credit card service providers in China.
$ CLPS 📚💸 👉 Blockchain for banks, artificial intelligence (AI), big data, and cloud applications.....
The development of fintech, blockchain, and other new technology brings transformation and significant improvement to banking and financial services.
CLPS and clients jointly seek to continuously explore potentials for banking industry innovation by challenging traditional business models, which will bring new and improved services to market.
http://www.clpsglobal.com/our-services/solution-services/blockchain-solution/
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🔎📚 Big data allows companies to create ever-narrowing segmentation, with tailored services to meet the client’s needs. In banking and finance, big data will become the core driver of future development.
CLPS is committed to producing financial data modeling and modeling analysis. Combined with big data, machine learning, deep learning, and other advanced technology, CLPS is capable of providing a full range of data modeling services and IT solutions for data mining and analysis needs ofn the financial field.
https://www.clpsglobal.com/our-services/solution-services/big-data-solution/
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https://finance.yahoo.com/news/clps-incorporation-reports-financial-results-112000566.html 👇
$CLPS First Half of Fiscal 2021 Highlights (all results compared to the six months ended December 31, 2019)
Revenues increased by 37.0% to $58.3 million from $42.6 million.
Operating income increased by 213.5% to $3.9 million from $1.2 million.
Net income increased by 114.9% to $4.9 million from $2.3 million.
Net income attributable to CLPS Incorporation's shareholders increased by 105.2% to $4.9 million from $2.4 million.
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https://finance.yahoo.com/news/clps-incorporation-announces-chairmans-letter-133000433.html 👇🔥👀👆
CLPS Incorporation Announces Chairman's Letter to the Company's Shareholders
March 12, 2021
"I am thrilled to discuss our streamlined strategy and development expectation for the rest of fiscal year 2021."
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https://selectionnewyork.blogspot.com/2021/07/clps-ceo-raymond-lin-on-1h-2021-results.html
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CLPS, Summary - CEO Raymond Lin on 1H 2021 Results - Earnings Call Transcript
Congratulations on your outstanding financial performance. However, your market has spread outside the Mainland China. What’s the strategy behind the global expansion?
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Gregozeski
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 a target mix of where you want to be at for those different regions by the end of this fiscal year or even next fiscal year?
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https://selectionnewyork.blogspot.com/2020/09/clps-blockchain.html
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Jan 04, 2021
CLPS Incorporation Announces Chairman's Letter to the Company's Shareholders
https://selectionnewyork.blogspot.com/2021/01/clps-2021-incorporation-announces.html
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The COVID-19 outbreak has brought significant impact to the global economy. However, it accelerated the digitization and informatization of traditional industries. Post-pandemic, it is forecasted that majority of enterprises will pivot to technology platforms and will venture on digital transformation. In 2021, we expect growing demand for global financial IT services and solutions, as well as for IT talents in cutting-edge technology domain such as artificial intelligence (AI), blockchain, big data, and cloud applications.
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CLPS Incorporation's Blockchain Passes University Testing.
"With the joint efforts of CLPS Research Institute and CLPS Shanghai, the Company's main operating subsidiary in China, the blockchain project marked another milestone to promote development in the financial industry. CLPS looks forward to cooperating with more customers, exploring new applications for blockchain technology, effectively integrating new technologies into financial industry, and further enhancing the strategic development of the Company."
www.prnewswire.com/news-releases/clps-incorporations-blockchain-passes-university-testing-300778803.htmle
26.8.2020 .....
Mr. Matthew Tang, Chief Executive Officer of CLPS US & HK, said, "I believe the IT industry continues to be at the forefront in developing a smart city, which Hong Kong consistently pursues. In addition, the global digital transformation and application of modern technology, such as artificial intelligence (AI), blockchain, big data, and Internet of Things (IoT), reflect upon the advancements that have drastically altered today's business landscape.
Li (CEO) 20.6.2020: For CLPS we adhere to the principle of transparency and regulated management. Everybody in CLPS is committed to bringing value to our shareholders. That is the key message that I would like to share with all the CLPS shareholders.
CLPS Incorporation Reports Financial Results for the First Half of Fiscal Year 2021
Mar 05, 2021, 06:10 ET
HONG KONG, March 5, 2021 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced its unaudited financial results for the six months ended December 31, 2020, or the first half of the Company's fiscal year 2021.
First Half of Fiscal 2021 Highlights (all results compared to the six months ended December 31, 2019)
- Revenues increased by 37.0% to $58.3 million from $42.6 million.
- Operating income increased by 213.5% to $3.9 million from $1.2 million.
- Net income increased by 114.9% to $4.9 million from $2.3 million.
- Net income attributable to CLPS Incorporation's shareholders increased by 105.2% to $4.9 million from $2.4 million.
- Basic and diluted earnings per share was $0.30 compared to $0.17 basic and diluted earnings per share.
- Net cash provided by operating activities increased by 66.2% to $9.4 million from $5.7 million.
- Non-GAAP net income guidance for the fiscal year 2021 was adjusted upwards to 60%-65% from 32%-37%.
Mr. Raymond Lin, Co-Founder and Chief Executive Officer of CLPS, commented, "We have taken extreme but decisive actions and showed highly resilient operational delivery while prioritizing our people and clients during the pandemic. As a professional IT services provider, we stood abreast with our clients to enable and speed up digital transformation ensuring uninterrupted business operations."
"Our growth strategy continued to prove its value, enabling us to pivot with agility in this challenging moment. During the period, we have done well in gaining more overseas and domestic clients within our core industry scope. We maintained strong relationship with our existing clients, which resulted to a 98% client retention rate. In addition, we further advanced our mergers and acquisition efforts both domestically and overseas. Our acquisition of the remaining 20% ownership stake in Ridik enabled us to expand our footprint not only in Singapore, but also to its neighboring countries in the Southeast Asia and Asia Pacific regions. In our commitment to sustain a sufficient supply of IT talents, we launched training programs in partnership with educational institutions and non-profit organization in Hong Kong. On top of our annual internship training program, CLPS Academy, the Company's training arm, has successfully carried out its second wave of Global Fintech Internship Program. It aims to introduce fresh talents with up-to-date knowledge and skills in global fintech industry perspective, thus meeting the talent demand from our top tier and global client base."
"I am pleased with the solid level of stability and momentum we achieved during the first half of fiscal 2021.I would like to extend my gratitude to our staff, clients, partners, and shareholders for your continued support particularly during this challenging time. We attribute our success to you for your trust and confidence in the Company."
Ms. Rui Yang, Chief Financial Officer of CLPS, commented, "CLPS ended the first half of fiscal year 2021 financial results on a solid note. We delivered total revenue of $58.3 million, a sustained growth of 37.0% year-over-year. Our operating income and net income increased by triple digits year-over-year by 213.5% and 114.9%, respectively, due to the positive effects of the Company's economies of scale. Our GAAP and non-GAAP basic and diluted earnings per share were $0.30 and $0.39, respectively. As a result of strong demand for IT services from our growing network of clients and enhanced operational efficiency, our non-GAAP net income guidance was adjusted upwards to 60%-65% from 32%-37% for the fiscal 2021. Looking forward, we remain focus and optimistic that our streamlined growth strategy will put us on a firm footing to reach our business goal for the remainder of fiscal 2021."
First Half of Fiscal Year 2021 Financial Results
Revenues
In the first half of fiscal 2021, revenues increased by $15.7 million, or 37.0%, to $58.3 million from $42.6 million in the prior year period. This increase in revenue was mainly due to an increase in revenue from IT consulting services.
Revenues by Service
- Revenue from IT consulting services increased by $15.5 million, or 37.2%, to $57.1 million and accounted for 97.8% of total revenue in the first half of fiscal 2021 from $41.6 million, or 97.7% 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, 2020 and 2019, 41.0% and 41.3% of IT consulting services revenue were from international banks, respectively.
- Revenue from customized IT solution services increased by $0.4 million, or 51.1%, to $1.1 million and accounted for 1.8% of total revenue in the first half of fiscal 2021 from $0.7 million, or 1.6% of total revenue. The increase was primarily due to increased demand from existing clients in the banking and wealth management areas.
- Revenue from other services decreased by $0.1 million, or 25.3%, to $0.2 million and accounted for 0.3% of total revenue in the first half of fiscal year 2021 from $0.3 million, or 0.6% of total revenue in the same period of the previous year. The decrease was primarily due to decreased demand for other services, including headhunting service.
Revenues by Operational Areas
- Revenue from banking area increased by $7.1 million, or 33.1% to $28.7 million in the first half of fiscal 2021, from $21.6 million in the prior year period. Revenue from banking area accounted for 49.3% and 50.7% of total revenues in the first half of fiscal 2021 and 2020, respectively.
- Revenue from wealth management area increased by $2.0 million, or 21.8% to $11.4 million in the first half of fiscal 2021, from $9.4 million in the prior year period. Revenue from wealth management area accounted for 19.6% and 22.0% of total revenues in the first half of fiscal 2021 and 2020, respectively.
- Revenue from e-Commerce area increased by $2.3 million, or 42.0% to $7.7 million in the first half of fiscal 2021, from $5.4 million in the prior year period. Revenue from e-Commerce area accounted for 13.2% and 12.7% of total revenues in the first half of fiscal 2021 and 2020, respectively.
- Revenue from automotive area increased by $1.5 million, or 72.9% to $3.5 million in the first half of fiscal 2021, from $2.0 million in the prior year period. Revenue from automotive area accounted for 6.0% and 4.7% of total revenues in the first half of fiscal 2021 and 2020, respectively.
Revenues by Geography
- Revenue generated outside of Mainland China increased by 53.9% to $6.6 million in the first half of fiscal year 2021 from $4.3 million in the same period of the previous year. Revenue generated outside of Mainland China accounted for 11.4% of total revenue compared to 10.1% in the prior year period. The increase in revenue generated outside of Mainland China reflects the Company's successful and continuous global expansion strategy.
Gross Profit
Gross profit increased by $3.1 million, or 20.2%, to $18.5 million in the first half of fiscal 2021 from $15.4 million in the prior year period.
Operating Expenses
Selling and marketing expenses increased by $0.4 million, or 27.7%, to $1.8 million in the first half of fiscal 2021 from $1.4 million in the prior year period due to the increase of salary expenses as new staff were hired, enabling the implementation of the Company's global expansion strategy. As a percentage of total revenues, selling and marketing expenses decreased to 3.1% in the first half of fiscal 2021 compared to 3.3% in the prior year period. The decrease was primarily due to the increase in operational efficiency as a result of economies of scale brought about by the Company's global expansion strategy.
Research and development expenses increased by $1.2 million, or 22.7%, to $6.2 million in the first half of fiscal 2021 from $5.0 million in the prior year period. The increase was primarily due to the increased research and development personnel related expenses which enables the Company's continued R&D efforts in big data, cloud computing, robotic process automation (RPA) and artificial intelligence (AI). As a percentage of total revenues, research and development expenses decreased to 10.6% in the first half of fiscal 2021 compared to 11.8% in the prior year period. The decrease was primarily due to the increase in operational efficiency as a result of economies of scale.
General and administrative expenses decreased by $1.3 million, or 16.1%, to $6.6 million in the first half of fiscal 2021 from $7.9 million in the prior year period. As a percentage of total revenues, general and administrative expenses decreased to 11.4% in the first half of fiscal 2021 compared to 18.6% in the prior year period. The decrease was primarily due to the increase in operational efficiency as result of economies of scale and refined management, and decreased in general and administrative personnel expenses.
Operating Income
Operating income increased by $2.7 million, or 213.5%, to $3.9 million in the first half of fiscal 2021 from $1.2 million in the same period of the previous year. Operating margin was 6.7% in the first half of fiscal 2021 compared to 2.9% in the prior year period.
Other Income and Expenses
Total other income, net of other expenses decreased to $1.1 million in the first half of fiscal 2021 from $1.3 million in the prior year period.
Provision for Income Taxes
Provision for income taxes decreased by $0.3 million to $0.1 million in the first half of fiscal 2021 from $0.4 million in the same period of the previous year, mainly due to the accrued deferred income tax assets from accumulated losses of the Company's subsidiaries.
Net Income and EPS
Net income increased by $2.6 million, or 114.9%, to $4.9 million in the first half of fiscal 2021 from $2.3 million in the prior year period. After excluding the impact of non-cash share-based compensation expenses, non-GAAP net income[1] increased by $3.0 million, or 91.2%, to $6.4 million in the first half of fiscal 2021 from $3.4 million in the same period of the previous year.
After excluding the impact of non-controlling interests, net income attributable to CLPS Incorporation's shareholders in the first half of fiscal 2021 was $4.9 million, or $0.30 basic and diluted earnings per share compared to net income attributable to CLPS Incorporation's shareholders of $2.4 million, or $0.17 basic and diluted earnings per share. After excluding the impact of non-cash share-based compensation expenses, non-GAAP net income attributable to CLPS Incorporation's shareholders[2] in the first half of fiscal 2021 was $6.4 million, or $0.39 basic and diluted earnings per share. This is compared to non-GAAP net income attributable to CLPS Incorporation's shareholders of $3.4 million, or $0.24 basic and diluted earnings per share, in the prior year period.
Cash Flow
As of December 31, 2020, the Company had cash and cash equivalents of $26.0 million compared to $12.7 million as of June 30, 2020.
Net cash provided by operating activities was approximately $9.4 million. Net cash provided by investing activities was approximately $0.1 million. Net cash provided by financing activities was approximately $2.4 million. The effect of exchange rate change on cash was approximately positive $1.4 million. The Company believes that its current cash position and cash flow from operations are sufficient to meet its anticipated cash needs for at least the next 12 months.
Financial Outlook
For fiscal year 2021, the Company expects, absent material acquisitions or non-recurring transactions, total sales growth in the range of approximately 30% to 35% compared to fiscal year 2020 financial results. The non-GAAP net income growth was adjusted in the range of approximately 60% to 65% from 32% to 37% as previously forecasted in the Company's second half and full year of fiscal 2020 financial report.
This forecast reflects the Company's current and preliminary views, which are subject to change and are subject to risks and uncertainties, including, but not limited to various risks and uncertainties facing the Company's business and operations as identified in its public filings.
Exchange Rate
The balance sheet amounts with the exception of equity as of December 31, 2020, were translated at 6.5250 RMB to 1.00 USD compared to 6.9618 RMB to 1.00 USD as of December 31, 2019. 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, 2020 and 2019 were 6.7734 RMB to 1.00 USD and 7.0297 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.
' (CLPS) CEO Raymond Lin on Q1 2021 Results - Earnings Call Transcript
CLPS Incorporation (NASDAQ:CLPS) Q1 2021 Earnings Conference Call March 5, 2021 8:30 AM ET
Company Participants
Rhon Galicha – Investor Relations
Raymond Lin – Director and Chief Executive Officer
Rui Yang – Chief Financial Officer
Li Li – Chief Operating Officer
Wilson Wong – Executive Vice President
Conference Call Participants
William Gregozeski – Greenridge Global
Operator
Hello, everyone. Welcome to the First Half of Fiscal Year 2021 Earnings Conference Call for the CLPS Incorporation. Please note that today’s conference is being recorded.
At this time, I would like to turn the call over to Mr. Rhon Galicha from CLPS Investor Relations for opening remarks and introductions. Please go ahead.
Rhon Galicha
Thank you, operator. Hello, everyone, and thank you for joining us on today’s call. CLPS Incorporation announced its first half of fiscal year 2021 financial results earlier this morning. An earnings release is now available on the company’s IR website at www.ir.clpsglobal.com. Before we continue, please note that our discussions today may include forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve a number of risks and 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 with the U.S. Securities and Exchange Commission and other documents filed with the U.S. SEC.
In that respect, I would like to read the following disclaimer applicable to such statements. Certain of the statements made in our discussion today are forward-looking statements within the meaning and protections of Section 27A of the Securities Act of 1933 as amended and Section 20E 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 with this cautionary notice, including, without limitation, those risks and uncertainties related to the company’s financial and operational performance in the first half of fiscal 2021. Its expectations of the company’s future performance, its preliminary outlook and guidance offered in this discussion 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 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 days on which any such statements otherwise are made.
All information provided today is of the date of this call, and CLPS does not undertake any obligation to update any forward-looking statements, except as required under the applicable law. With respect to any non-GAAP measures discussed during today’s call, the company reconciliation information related to those measures can be found in the earnings release issued earlier today.
Now allow me to introduce the management team present at the call. Mr. Raymond Lin, Chief Executive Officer and Director of CLPS, will start off the call with a review of recent company developments and operating results; followed by Ms. Rui Yang, Chief Financial Officer of CLPS, who will discuss 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’ll open up the call for a Q&A session. Mr. Li Li, the company’s Chief Operating Officer; and Mr. Wilson Wong, Executive Vice President of CLPS, will also join the Q&A session.
With that said, I would now like to turn the call over to Raymond. Raymond, please go ahead.
Raymond Lin
Yes. Okay. Thank you, Rhon. 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, and COVID-19 pandemic has changed many things to everyone. As I said before, COVID-19 will change our life everywhere. Okay. Anyway, I hope you and your family are safe and happy. And in here, I want to say thank you to my team, Henry, Rita, Wilson, Jenson and my IR team and the staff, and thank you to support our business, have the strong increasement and growth. Thank you. You are doing the well job. Thank you.
Okay. Now I’m pleased to announce that our core business strategy has been specifically implemented as reflected on the financial results for the first half of fiscal year 2021. We showed that early this morning. Our revenue increased by 37% due to the continued demand for our IT services. As we enhanced our operating efficiency, the operating income significantly increased by 214%.
The net income also increased by 115%, which results to the US$0.3 basic and diluted earnings per share as compared with US$0.17 basic and diluted earnings per share on the same period of the last year. During this period, we have been aggressive in the global expansion strategy implementation, which contributed in achieving our growth. It was attested by the significant 54% increase in revenue generated outside Mainland China.
In our core business, we generated more partnership during the past periods. First, we got a partnership agreement with a China lease company. The company is specialized in the loan management system in the banking area in the China market. The partnership aims to explore global market opportunities as well. Second, we also opened an IT service agreement with the largest car associations in China.
Latest, our presence in the automotive industry have deepened with partnership with one of the biggest automobile manufacturer in Shanghai and China. We utilized the big data technology in the project to be used in driver lessons, new energy cost and navigation system. In terms of the investments, we diversified our business growth. We venture in the robotics technology in efforts in penetrating in the chip industry.
We also invest in Guangdong Zhichuang company to explore our business opportunity in telecom industry and social media framework area. And we acquired the remaining 20% ownership stake in the Ridik Singapore, and set up Singapore as our Southeast Asia headquarters. As a wholly-owned subsidiary, Ridik Singapore will enable us to fully integrate our business in Southeast Asia, which will further advance our global expansion.
About the training, we have been and we will always focus on developing and maintaining the talent supply chain. In order to meet the demand for our global clients, we expand our technical and business training overseas, including in Singapore and Hong Kong. Upon completion of the training, qualified IT talent have been dependent on our projects in the banking IT department and some in the insurance company IT department. And some of them has already joined our clients.
For the IT training, I’m very proud to tell you, for the past 15 years, CLPS has trained over thousands of talents. Now they are distributed all over the world. They work in the different financial institutions and different jobs and make few contribution. I’m really, really happy about that. Here, I want to tell them, "Hey, guys, I love you all too much. I’m very proud of you."
Looking forward, we will continue to provide high-quality IT service to the clients. We are committed to emboldening digital transformations among our clients. This is to improve their productivity and efficiency.
In addition, we will continue to invest in new business, new products and new technologies. We will continue to provide high-end training in technology and business and based on our clients’ requirement. Business and our streamlined growth strategy will put us on a firm footing in order to reach our business goals for the remainder of fiscal year 2021 and beyond.
Now I would like to turn the call over to our CFO, Rita Yang. She will tell you about more our financial results on the first half of fiscal year 2021. Rita, please go ahead.
Rui Yang
Thank you, Raymond. Thank you all for joining today’s earnings call. I will now provide an update on our financial performance from the reporting period. Please note that all numbers provided are in U.S. dollar terms and that all comparisons are made on a year-over-year basis. In the first half of fiscal 2021, our revenue is up 37% to $58.3 million from $42.6 million. This increase in revenue was mainly due to an increase in revenue from IT consulting services, in particular, revenue from IT consulting services up to 37.2% to $57.1 million from $41.6 million. The increase was due to increased demand from existing and new clients.
Revenue from customized IT solution services up 51.1%, to $1.1 million from $0.7 million. The increase was primarily due to increased demand from existing clients in the banking and wealth management areas. Revenue from other services down 25.3% to $0.2 million from $0.3 million. The decrease was primarily due to decreased demand for other services, including headhunting service. That’s the revenues by our [indiscernible] services. And about the revenue by geography, revenue generated from outside Mainland China up 53.9% to $6.6 million from $4.3 million.
The increase in revenue generated from outside Mainland China reflects the company’s successful and continuous global expansion strategy. Gross profit up 20.2% to $18.5 million from $15.4 million. As for operating expense, selling and marketing expense up 27.7% to $1.8 million from $1.4 million. The increase was due to the increase of salary expense as new staff were hired, enabling the implementation of the company’s global expansion strategy.
As a percentage of total revenue, selling and marketing expense decreased to 3.1% from 3.3%. The decrease was primarily due to the increase in operational efficiency as a result of economics of scale brought about by the company’s global expansion strategy. Research and development expense up 22.7% to $6.2 million from $5.0 million. The increase was primarily due to research and development personnel-related expense, which enables the company’s continued R&D efforts with big data, cloud computing, robotic process automation, that’s RPA, and artificial intelligence, AI.
As a percentage of total revenues, research and development expense decreased to 10.6% from 11.8%. The decrease was primarily due to the increase in operational efficiency as a result of economics of scale. General and administrative expense down 16.1% to $6.6 million from $7.9 million. As a percentage of total revenues, general and administrative expense decreased to 11.4% from 18.6%.
The decrease was primarily due to the increase in operational efficiency as a result of economics of scale and refined management and decrease in general and administrative personnel expense. As a result of the above, operating income up 213.5% to $3.9 million from $1.2 million. Operating margin was 6.7% compared to 2.9% in the prior year period. Total other income, net of other expense decreased to $1.1 million from $1.3 million.
Net income up 114.9% to $4.9 million from $2.3 million. After excluding the impact of non-cash share-based compensation expense, non-GAAP net income up 91.2% to $6.4 million from $3.4 million. After excluding the impact of non-controlling interest, net income attributable to CLPS Incorporation’s shareholders in the first half of fiscal 2021 was $4.9 million or $0.3 per basic and diluted share compared to net income attributable to CLPS Incorporation’s shareholders of $2.4 million or $0.17 basic and diluted earnings per share.
After excluding the impact of non-cash share-based compensation expense, non-GAAP net income attributable to CLPS Incorporation’s shareholders in the first half of fiscal 2021 was $6.4 million or $0.39 per basic and diluted share. This is compared to a non-GAAP net income attributable to CLPS Incorporation’s shareholders of $3.4 million or $0.24 basic and diluted earnings per share in the prior year period. As of December 31, 2020, we had cash and cash equivalents of $26 million compared to $12.7 million as of June 30, 2020. As of December 31, 2020, we had total numbers of employees of 3,345, up 25% year-over-year.
Looking forward, for fiscal year 2021, we expect total sales growth in the range of approximately 30% to 35% compared to fiscal year 2020 financial results. The non-GAAP net income growth was adjusted in the range of approximately 60% to 65% from 32% to 37% as previously forecasted in the company’s second half and full year of fiscal 2020 financial report. This forecast is subject to change by the factors mentioned in our earnings release. This concludes our prepared remarks.
Operator, we are now ready for questions.
Question-and-Answer Session
Operator
Thank you. [Operator Instructions] We’ll now take our first question from William Gregozeski of Greenridge Global. Please go ahead.
William Gregozeski
Hi, great results. Can you talk about what’s driving your revenue growth and your ability to continue to win new clients?
Raymond Lin
Henry, can you help me?
Li Li
I will take the question, first. Okay. Okay. No problem.
Raymond Lin
Henry?
Li Li
First off, thanks for your questions. Actually, our rapid growth and our ability to win new clients are actually driven by our competitive advantages. We maintain strategic engagement with well-known global clients in banking, in wealth management, in e-commerce and automotive industry. As mentioned by Rita just now, our CFO, we also have more than 3,300 world-class human capital base with bilingual or multilingual capability, of which majority of them has underwent our professional IT training programs.
So this is to ensure our success in service delivery to our clients. And in addition, our highly experienced management team also maintains operational progress on the technological innovation. And horizontally, we attract new clients through our global presence and through M&As. And vertically, we continuously enhance our IT services, such as the consulting and customized solution. And it’s also driven by our IT innovation through our innovation line by investing in cutting-edge technology like the IPA, big data, cloud and so on.
William Gregozeski
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 a target mix of where you want to be at for those different regions by the end of this fiscal year or even next fiscal year?
Rui Yang
Okay. Thanks a lot for your question. For the forecast of revenue distribution by geography, although we have been aggressive to be more visible in the overseas market financial and operation-wise, our business in the Mainland China still significantly contributes to our growth. But on the other hand, our global expansion strategy has been effectively implemented. For the first half of fiscal 2021, the revenue generated outside Mainland China has significantly increased by 53.9% to $6.6 million or 11.4% of the total revenue compared to 10.1% in the prior year period.
Going forward, the company expects, absent material acquisition or non-recurring transaction, for the revenue that will be generated from outside Mainland China, including from U.S. at approximately 12% for the whole year of fiscal 2021 and at 13% for fiscal 2022. Please be informed that this is preliminary view and may subject to change. Thank you.
William Gregozeski
Okay. Great. And then last question, do you have any specific brands you can disclose about the cash you raised or even generally how you’re planning to use it to further your growth?
Li Li
Okay.
Rui Yang
Raymond, can you answer this question?
Raymond Lin
Yes. Yes. Can you repeat the question, sorry?
William Gregozeski
Yes. Do you have any specific plans for the cash you just raised or even just generally, how you can use it to further growth?
Wilson Wong
Yes. Let me take the question, Mr. Raymond.
Raymond Lin
Yes. Okay.
Wilson Wong
Yes. In terms of the capital that we raised, we will hedge to our global expansion strategies that we will work along with our well-known global clients, our management, e-commerce, automotive investment clients. And also, we will invest, as Raymond mentioned, continuing in the training of IT talent. And also that we will grow outside as Rita has mentioned, out of Mainland China. We will continue our global expansion in the international market, like I’m based in Singapore, so that with the recent acquisition of the remaining 20% actually stake in Ridik.
So that will allow us to penetrate the IT services market in the neighboring country, in the Southeast and Asia Pacific regions. So on top of that, we also plan to rollout for business in the U.S. As you know that we’ve just got two new contracts from our existing client, which they are all based – headquartered in the U.S. So moving forward, we are also developing more businesses and exposure in the U.S. market. So that – the capital that – or cash that we raised that is the lever that we are concentrating and moving ahead and spending in the international market.
William Gregozeski
Okay. Great. Thank you.
Rui Yang
In addition – yes, in addition, for this direct offering, we have successfully closed the $16 million worth of registered direct offering priced at $6 per share on March 3, 2021.
Operator
Thank you. We’ll now take our next question from Melissa Hu [ph], please go ahead.
Unidentified Analyst
Congratulations on your new contracts from client in the U.S. However, I would like to know if you can disclose the name of this client. That’s all my question.
Raymond Lin
Okay. Can I answer your questions? Thank you for your questions. Due to the confidence agreement between the CLPS and the client, we are only requested to disclose certain information, such as those that we mentioned in the press release. It’s also to protect our long-term business relationship with them, which will enable us for our continued growth. And in return, we will bring more value to our shareholders.
In addition, our U.S. counsel have thoroughly reviewed in – the contents of the contract and of the press release to ensure that we follow the terms and conditions strictly. We have been aggressive with our global expansion strategy, and we are looking forward to gain more business opportunities. From the overseas market, as a takeaway, major priority is to inform our shareholders and market of all significant news about the company.
Operator
Thank you. We’ll now take our next question from [indiscernible] please go ahead.
Unidentified Analyst
Okay. Congratulations on your outstanding financial performance. However, your market has spread outside the Mainland China. What’s the strategy behind the global expansion?
Raymond Lin
Wilson, can you help me to answer the question, please. Wilson?
Wilson Wong
So as mentioned earlier, in terms of our global strategies outside Mainland China, as you know that we already have acquired Ridik 100% in Singapore as I’m also based in Singapore, and I can attest that there is a strong demand for our IT services in Singapore as well in this region. So with the reason – 100% of the remaining 20% share that we acquired in Ridik, so that will help us to penetrate the IT services and focus our developing – investment development in the nearby countries in the Southeast Asia and Asia Pacific.
And in addition, we also grow our business in the U.S. as mentioned earlier that we have recently got two new customers contract from our existing clients, which they are also based in the U.S. So that will give us a new, moving forward, opportunity to develop and deepen our business and exposure in the U.S. market. Last and but not least, we are pleased that our global expansion strategy is fundamentally sound, effective and is now going to begin to our financials as highlighted by our CFO. Thank you.
Operator
Thank you. We’ll now take our next question from [indiscernible] please go ahead.
Unidentified Analyst
Hello. Hello, management team. Thank you for taking my question. My question is, how does your business affected by the COVID-19 pandemic?
Li Li
Okay.
Raymond Lin
Henry, can you help to answer?
Li Li
Yes. Sure. Sure. I would like to take the question. Thanks for your questions. Actually, although we have been aggressive to be more visible in the overseas market, financial and operational wise, our business in Mainland China continues – contributes to our growth. So as for the COVID-19 pandemic, Mainland China has quickly recovered from COVID-19 pandemic, which, in fact, has not greatly affected CLPS and the industry. In fact, the technology market has been on demand since the pandemic and more businesses and products were moved to China. So globally speaking, to ensure the safety of our employees, some of them are encouraged by our clients to work from home. Thank you.
Operator
Thank you. We’ll now take our next question from Louise Wang [ph], please go ahead.
Unidentified Analyst
Thank you, operator. First, congratulations on the strong financial performance. And my question is, could you give more color on the economics of scale? How does it improve your operating efficiency? Thank you.
Rui Yang
Okay. Thank you for your question.
Raymond Lin
Rita...
Rui Yang
Yes, I will answer this question, Raymond.
Raymond Lin
Yes. Go ahead.
Rui Yang
Yes. As we expanded our business, our top line revenue also increased. We also needed to have more employees to support our growing business as reflected in our returns. On the other hand, with our extensive experience in IT services, our growing staff has been able to meet more demand from our clients as tested in decreased expense as a percentage of total revenue ratio. As a result, we generated a better bottom line, which will provide more value to our shareholders. That’s all. Thank you.
Operator
Thank you. We’ll now take our next question from [indiscernible] please go ahead.
Unidentified Analyst
Hi, everybody. My question is, what’s the reason for the adjusted non-GAAP net income gross forecast? Thank you.
Rui Yang
Okay. I will take this question. Thanks for your question. As a result of strong demand for IT services from our growing network of clients and enhanced operational efficiency, so we have adjusted our non-GAAP net income forecast for the fiscal year 2021 to 60% to 65% from 32% to 37%. Yes. That’s all. Thank you.
Operator
Thank you. We’ll now take our next question from Alice Zhang [ph], please go ahead.
Unidentified Analyst
Yes. I have a question to CFO. How do you recognize your revenue?
Rui Yang
Thank you. Thanks a lot for your question. As for time and expense basis contract, the company is reimbursement for actual hours incurred at pre – already negotiated hourly billing rate, but revenues from fixed price customer like the solution contracts require the company to perform services for system design, planning and integrating based on customers’ that techniques, which requires significant production and customization. The required customization period is generally less than one year. Upon delivery of the services, customer acceptance is generally required. In the same context, the company is generally required to provide post customer support for a period from three months to one year after the customized application is delivered. Yes. That’s all for your question. Thank you.
Operator
Thank you. We’ll now take our next question from Casey Lee [ph], please go ahead.
Unidentified Analyst
Thank you. My question is for the COO. What’s your age among your competitors? Thank you.
Raymond Lin
Hello, Henry, your question – for you.
Li Li
Thanks. I’d like to take the question. Thanks for your question. Actually, CLPS has been in the – 15 years in the industry. We believe that our expertise in providing high-quality IT service is one of great advantage among our competitors. In addition, our focus and big clients are international companies in the financial and the technology sectors. So those are the edge among our competitors. Thanks.
Operator
Thank you. We’ll now take our next question from [indiscernible] please go ahead.
Unidentified Analyst
Okay. I have a question for CFO. How is your revenue outside the Mainland China trending during these periods?
Rui Yang
Okay. Thanks for your question. The revenue generated outside Mainland China has significantly increased by 53.9% to $6.6 million, thanks to our successful implication and continuous global expansion strategy. The increase in revenue generated outside the Mainland China comes from Hong Kong, Singapore, India, Japan and Malaysia. That’s all. Thank you.
Operator
Thank you. There are no further questions at this time. I would like to turn the conference back over to Mr. Galicha for any additional or closing remarks. Thank you.
Rhon Galicha
Raymond, please go ahead for the closing remarks.
Raymond Lin
Yes. Okay. Thank you, Rhon. Thank you, operator. Thank you to investors. Thank you for your questions. And thank you, again, for joining us on today’s call. And we appreciate your ongoing support. We look forward to updating you on our progress in the weeks and monthly ahead. Have a good day, everybody. Thank you. Thank you very much.
Li Li
Bye-bye.
Wilson Wong
Bye.
Raymond Lin
Thank you.
Operator
Ladies and gentlemen, this concludes today’s call. Thank you for your participation. You may now disconnect.
CLPS Incorporation Reports Financial Results for the Second Half and Full Year of Fiscal 2020
Thu, October 22, 2020, 10:40 PM
HONG KONG , Oct. 22, 2020 -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced its financial results for the six months ended June 30, 2020 and full year of fiscal year 2020.
Revenues by Service
Revenue from IT consulting services increased by $13.5 million , or 42.3%, to $45.5 million and accounted for 97.2% of total revenue in the second half of fiscal 2020, up from $32.0 million , or 93.7% of total revenue, in the prior year period. For the year ended June 30, 2020 , revenue from IT consulting services increased by $25.3 million , or 41.1%, to $87.1 million and accounted for 97.5% of total revenue, up from $61.8 million , or 95.1% of total revenue, in the prior year period. The increase was due to increased demand for the Company's IT consulting service from banks and other financial institutions, primarily from existing clients. For the twelve months ended June 30, 2020 and 2019, 40.0% and 47.5% of IT consulting services revenue were from international banks, respectively.
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Second Half of Fiscal 2020 Highlights (all results compared to the six months ended June 30 , 2019)
Revenues increased by 37.2% to $46.8 million from $34.1 million .
Gross profit increased by 25.1% to $15.7 million from $12.6 million .
Net income attributable to CLPS Incorporation's shareholders was $0.6 million , or $0.04 basic and diluted earnings per share, compared to net loss attributable to CLPS Incorporation's shareholders of $1.8 million , or $0.13 basic and diluted losses per share.
Non-GAAP net income attributable to CLPS Incorporation's shareholders 1 increased
by 200.9 % to $3.5 million ,
Revenue generated outside of mainland China increased
by 110.0 % to $6.3 million in the second half of fiscal year 2020 from $3.0 million in the prior year period. Revenue generated outside of mainland China increased
by 133.2 % to $10.6 million for the year ended June 30, 2020 from $4.5 million in the prior year period, accounted for 11.8% of total revenue compared to 7.0% in the prior year period.
The increase in revenue generated outside mainland China reflects the Company's successful and continuous global expansion strategy.
Net income for the year ended June 30, 2020 increased by $6.5 million to $3.1 million from a net loss of $3.4 million in the prior year period.
As of June 30, 2020 , the Company had cash and cash equivalents of $12.7 million compared to $6.6 million as of June 30, 2019 .
Financial Outlook
For fiscal year 2021, the Company expects, absent material acquisitions or non-recurring transactions, total sales growth in the range of approximately 30% to 35%, non-GAAP net income growth in the range of approximately 32% to 37% compared to fiscal year 2020 financial results.
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http://www.clpsglobal.com/clps-incorporation-reports-financial-results-for-the-second-half-and-full-year-of-fiscal-2020/
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May 18, 2018 .
"CLPS IPO: It Is Undervalued." ( 5,25 $ )
"The company is growing at a high pace."
https://selectionnewyork.blogspot.com/2020/09/1-billion-market-cap.html
May 18, 2018 .
"CLPS IPO: It Is Undervalued." ( $ 5,25 ) "The company is growing at a high pace."
