Total and service revenue increase 92.8 and 241.6 percent year over
year, respectively Company raises full-year 2008 total revenue
guidance BEIJING, June 23 /Xinhua-PRNewswire/ -- eFuture
Information Technology Inc. (Nasdaq: EFUT; "eFuture"), a leading
provider of front-end supply chain management software and services
in China, today announced its unaudited financial results for the
first quarter ended March 31, 2008. Financial Results Highlights
for the First Quarter of 2008 -- Total revenue for the first
quarter of 2008 was RMB14.0 million (US$2.0 million), an increase
of 92.8% from the first quarter of 2007. -- Software revenue for
the first quarter of 2008 was RMB7.6 million (US$1.1 million), an
increase of 33.5% from the first quarter of 2007. -- Service fee
income for the first quarter of 2008 was RMB5.0 million (US$0.7
million), an increase of 241.6% from the first quarter of 2007. --
Gross profit for the first quarter of 2008 was RMB4.7 million
(US$0.7 million), an increase of 31.8% from the first quarter of
2007. Excluding amortization of acquired technology, gross profit
for the first quarter of 2008 would have been RMB8.6 million
(US$1.2 million), an increase of 130.9% from the first quarter of
2007. -- Gross margin for the first quarter of 2008 decreased to
33.6% from 49.2% in the first quarter of 2007. Excluding
amortization of acquired technology, gross margin for the first
quarter of 2008 would have been 61.2%, compared to 51.1% in the
first quarter of 2007. -- Net loss for the first quarter of 2008
was RMB9.2 million (US$1.3 million), an increase of 658.2% over the
first quarter of 2007. "We are pleased to report strong top-line
growth in a traditionally weak first fiscal quarter that includes
the long Chinese New Year holiday and this year was marked by
severe snow storms across large parts of China. With a strong start
to 2008, we are optimistic about our prospects and our earnings per
share for the full year," said Mr. Adam Yan, eFuture's chairman and
chief executive officer. "In addition, a larger base of installed
clients contributed to strong organic growth. Service revenue was
up 241.6%, the strongest growth of any quarter in ten years, with
software revenue growth remaining solid. Moreover, we have
strengthened our position and significantly broadened our
opportunity in the fast-growing retail market in China with the
successful integration of our Guangzhou Royalstone acquisition.
Looking forward to the remainder of 2008, we expect that our B2B
services, including http://www.bfuture.com.cn/ and
http://www.jindian.com.cn/, will begin to contribute to our revenue
and drive value for retailers and their suppliers." First Quarter
of 2008 Operational Highlights -- Sales contracts in the first
quarter of 2008 increased 102.5% to RMB18.0 million (US$2.6
million) from RMB8.8 in the first quarter of 2007. -- Service sales
contracts in first quarter of 2008 increased 662.8% to RMB8.6
million (US$1.2 million) from RMB1.13 million in the first quarter
of 2007. -- Total new orders increased 350% to 117 orders from 26
in the first quarter of 2007. "During the first quarter, we placed
particular emphasis on integrating our acquisitions completed in
2007 into a single platform," Mr. Yan continued. "We worked to
smoothly incorporate culture, strengthen back-office resource
integration and improve processes to streamline internal operations
and reduce software deployment costs. This organic growth strategy
has translated into a 12% increase in gross margins, excluding
amortization of acquired technology." As part of its effort to
streamline its operations to promote organic growth, the company
organized its software business according to six vertical strategy
business areas: small and medium business, key accounts, department
stores and shopping malls, grocery and supermarkets, specialty
stores and fast-moving consumer goods. Financial Results for the
First Quarter of 2008 Revenue eFuture reported total revenue of
RMB14.0 million (US$2.0 million) for the first quarter of 2008, a
92.8% increase from RMB7.3 million in the first quarter of 2007.
Software sales in the first quarter of 2008 increased 33.5% to
RMB7.6 million (US$1.1 million) from RMB5.7 million in the first
quarter of 2007. Software sales contributed 54.0% to total revenue
in the first quarter of 2008, compared to 78.0% in the first
quarter of 2007. Hardware sales in the first quarter of 2008
increased 1020% to RMB1.4 million (US$0.2 million) from RMB0.1
million in the first quarter of 2007. Hardware sales contributed
10.1% to total revenue in the first quarter of 2008, compared to
1.7% in the first quarter of 2007. Service fee income in the first
quarter of 2008 increased 241.6% to RMB5.0 million (US$0.7 million)
from RMB1.5 million in the first quarter of 2007. Service fee
income contributed 36.0% to total revenue in the first quarter of
2008, compared to 20.3% in the first quarter of 2007. The increase
was largely due to eFuture's policy to provide free maintenance for
its products in the first year of operation, after which the
company begins to charge maintenance and support fees. Gross
Margins Gross profit for the first quarter of 2008 was RMB4.7
million (US$0.7 million), a 31.8% increase from RMB3.6 million in
the first quarter of 2007. Excluding amortization of acquired
technology, gross profit for the first quarter of 2008 would have
been RMB8.6 million (US$1.2 million), an increase of 130.8% from
the first quarter of 2007. Consolidated gross margin for the first
quarter of 2008 was 33.6%, compared to 49.2% in the first quarter
of 2007 and 43.5% in the fourth quarter of 2007. The decrease in
gross margin was largely due to the amortization of acquired
technology of RMB3.8 million (US$0.55 million), which represented
27.5% of total revenue in the first quarter of 2008, compared to
1.9% in the first quarter of 2007. Excluding amortization of
acquired technology, gross margin for the first quarter of 2008
would have been 61.2%, compared to 51.1% in the first quarter of
2007. Operating Expenses Research and development expenses in the
first quarter increased 37.2 percent year over year to RMB0.2
million (US$24 thousand). The increase in research and development
was mainly due to the acquisition of Royalstone last year, which
led to the integration of two research and development teams.
General and administrative expenses in the first quarter increased
169.7 percent year over year to RMB7.9 million (US$1.1 million).
The increase in general and administrative expenses was mainly due
to RMB2.3 million (US$0.3 million) of bad debt expenses caused by
significantly increased accounts receivable. We had US$2 million of
accounts receivable in the first quarter, an 84.9% increase from
the same period of 2007.General and administrative expenses for the
first quarter of 2008 were 56.2 percent of total revenues, compared
to 40.1 percent in the first quarter of 2007 and 20.8 percent in
the fourth quarter of 2007. Selling and distribution expenses in
the first quarter increased 73.0 percent year over year to RMB3.8
million (US$536 thousand). The increase in selling and distribution
expenses was partially due to a significant increase in our sales
contracts. Selling and distribution expenses for the first quarter
of 2008 were 26.8 percent of total revenues, compared to 29.9
percent in the first quarter of 2007 and 8.2 percent in the fourth
quarter of 2007. Total share-based compensation expenses in the
first quarter of 2008 were RMB0.8 million (US$0.1 million).
Operating loss in the first quarter of 2008 was RMB7.1 million
(US$1.0 million), a 332.5% increase from RMB1.6 million in the
first quarter of 2007. Operating margin was -50.5% in the first
quarter of 2008, compared to -22.5% in the first quarter 2007 and
14.1% in the fourth quarter of 2007. Net Income Net loss for the
first quarter of 2008 was RMB9.2 million (US$1.3 million), compared
to net losses of RMB1.2 million in the first quarter of 2007 and
net loss RMB24.6 million in the fourth quarter of 2007. Net margins
were -65.8% in the first quarter of 2008 compared to -16.74% in the
first quarter of 2007 and -50.6% in the fourth quarter of 2007. The
increase in net loss and decrease in net margin was due to a number
of factors including amortization of acquired technology from the
acquisitions completed in 2007 of RMB3.8 million (US$0.6 million),
bad debt expenses of RMB2.4 million (US$0.3 million) as a result of
a large increase in accounts receivable at the end of the quarter.
Basic and diluted losses per share for the first quarter of 2008
were RMB3.14 (US$0.45) and RMB3.14 (US$0.45), respectively. EBITDA
EBITDA (non-GAAP) for the first quarter of 2008 was RMB-1.39
million (US$- 0.2 million), a decrease of 101.1% from the first
quarter of 2007. First quarter of 2008 adjusted net loss (non-GAAP)
was RMB3.2 million (US$0.5 million), an increase of 732% from the
first quarter of 2007. Adjusted non-GAAP diluted losses per share
for the first quarter of 2008 was RMB1.09 (US$0.16). Cash Flow and
Capital Expenditures As of March 31, 2008, the company had RMB59.3
million (US$8.5 million) in cash and cash equivalents and
short-term investments. Net cash generated from operating
activities and capital expenditures in the first quarter of 2008
were RMB-8.2 million (US$-1.2 million) and RMB2.2 million (US$0.3
million), respectively. As of March 31, 2008 the company had 627
employees compared to 588 employees as of December 31, 2007.
Business Outlook for 2008 The company has raised its full-year 2008
total revenue guidance to be in the range of approximately US$19 to
US$20 million, representing annual growth of 65 to 74% over 2007.
This forecast is a current and preliminary view and is subject to
change. Conference Call Information eFuture's management will hold
an earnings conference call at 8:30 p.m. on June 23, 2008 U.S.
Eastern Time (8:30 a.m. on June 24, 2008 Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as follows:
U.S. and International: +1-888-710-9688 Mainland China:
+86-10-5851-1260 Hong Kong: +852-8306-5032 Please dial in 10
minutes before the call is scheduled to begin and request to be
connected to the "eFuture earnings call." Additionally, an archived
webcast of the conference call will be available on the company's
website at http://www.e-future.com.cn/ . About eFuture Information
Technology Inc. eFuture is a leading provider of front-end supply
chain management software and services in China. eFuture provides
integrated software and service solutions to manufacturers,
distributors, wholesalers, logistics companies and retailers in
China's front-end supply chain market, especially in the retail and
Fast Moving Consumer Goods industries. eFuture currently serves
more than 1,000 clients, including Fortune 500 companies, over 770
retailers and over 200 distributors operating in China. eFuture is
also one of IBM's premier business partners in Asia Pacific and is
a strategic partner with Oracle, Microsoft, JDA, Motorola and
Samsung Network China. The company has over 650 employees and 20
branch offices across China. For more information about eFuture,
please visit http://www.e-/ future.com.cn/. Safe Harbor This
announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Among other things, 2008
financial outlook and quotations from management in this
announcement, as well as strategic and operational plans, contain
forward- looking statements. eFuture may also make written or oral
forward-looking statements in periodic reports to the Securities
and Exchange Commission (the "SEC"), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
first parties. Statements that are not historical facts, including
statements about the company's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: eFuture's anticipated growth strategies; eFuture's
future business development, results of operations and financial
condition; expected changes in the company's revenues and certain
cost or expense items; eFuture's ability to attract customers and
leverage its brand; trends and competition in the software
industry; the company's ability to hire, train and retain qualified
managerial and other employees; the company's ability to develop
new software's and pilot new business model at desirable locations
in a timely and cost-effective manner; the expected growth of the
Chinese economy software market in retail and consumer goods
industries; and Chinese governmental policies relating to private
managers and operators of software and applicable tax rates.
Further information regarding these and other risks is included in
eFuture's annual report on Form 20-F and other documents filed with
the SEC. All information provided in this press release and in the
attachments is as of June 24, 2008, and the company undertakes no
duty to update such information or any other forward-looking
information, except as required under applicable law. This
announcement contains translations of certain amounts from Chinese
Renminbi ("RMB") into U.S. dollars ("US$") at specified rates
solely for the convenience of the reader. Unless otherwise noted,
all currency translations are made at a rate of RMB7.012 to
US$1.00, the effective noon buying rate on March 31, 2008. Non-GAAP
Financial Measures To supplement eFuture's unaudited consolidated
financial results presented in accordance with U.S. GAAP, eFuture
uses the following non-GAAP measures defined as non-GAAP financial
measures by the SEC: adjusted EBITDA excluding amortization of
acquired software technology, amortization of intangibles,
share-based compensation expenses, depreciation, adjusted net
income excluding amortization of acquired software technology,
amortization of intangibles, share-based compensation expenses and
accretion on convertible notes, adjusted basic and diluted earnings
per share excluding amortization of acquired software technology,
amortization of intangibles, share-based compensation expenses and
accretion on convertible notes. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with U.S. GAAP. eFuture believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding its performance and liquidity by excluding
expenses that may not be indicative of its operating performance
from a cash perspective or be indicative of its operating
performance. eFuture believes that both management and investors
benefit from referring to these non-GAAP financial measures in
assessing the company's performance and when planning and
forecasting future periods. These non-GAAP financial measures also
facilitate management's internal comparisons to eFuture's
historical performance and liquidity. eFuture computes its non-GAAP
financial measures using the same consistent method from quarter to
quarter. The company believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision-making. The accompanying
paragraphs have more details on the reconciliations between GAAP
financial measures that are most directly comparable to non-GAAP
financial measures. eFuture's management also believes that EBITDA,
defined as earnings before interest, income tax expense,
depreciation and amortization is a useful financial metric to
assess its operating and financial performance before the impact of
investing and financing transactions and income taxes. In addition,
eFuture's management believes that EBITDA is widely used by other
companies in the software industry and may be used by investors as
a measure of its financial performance. Given the significant
investments that eFuture has made in property, equipment,
depreciation and amortization expense comprises a meaningful
portion of the company's cost structure. eFuture's management
believes that EBITDA will provide investors with a useful tool for
comparability between periods because it eliminates depreciation
and amortization expense attributable to capital expenditures. The
presentation of EBITDA should not be construed as an indication
that the company's future results will be unaffected by other
charges and gains eFuture considers to be outside the ordinary
course of its business. The use of EBITDA and adjusted EBITDA has
certain limitations. Depreciation and amortization expense for
various long-term assets, income tax expense, interest expense and
interest income have been and will be incurred and are not
reflected in the presentation of EBITDA. Further, share-based
compensation expenses have been and will be incurred and are not
reflected in the presentation of adjusted EBITDA. Each of these
items should also be considered in the overall evaluation of
eFuture's financial results. The term EBITDA or adjusted EBITDA is
not defined under U.S. GAAP, and EBITDA or adjusted EBITDA is not a
measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP. When assessing
eFuture's operating and financial performance, you should not
consider this data in isolation or as a substitute for its net
income, operating income or any other operating performance measure
that is calculated in accordance with U.S. GAAP. In addition, the
company's EBITDA and adjusted EDITDA may not be comparable to
EBITDA or similarly titled measures utilized by other companies
since such other companies may not calculate EBITDA in the same
manner as eFuture does. E-FUTURE INFORMATION TECHNOLOGY INC. AND
SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS USD=RMB 7.0120
Chinese Yuan (Renminbi) U.S. Dollars March 31, December 31, 2007
2008 2008 (Audited) (Unaudited) (Unaudited) ASSETS Current assets
Cash and cash equivalents 120,286,585 59,283,677 8,454,603 Trade
receivables, less allowance for doubtful accounts of RMB2,109,910
and RMB4,695,898, respectively 7,488,146 13,845,503 1,974,544
Refundable value added tax 2,120,021 2,351,243 335,317 Deposits
1,038,943 209,660 29,900 Advances to employees 2,284,645 2,815,950
401,590 Advances to suppliers 2,366,200 657,724 93,800 Other
receivables 125,544 5,681,883 810,309 Prepaid expenses 453,157
880,875 125,624 Inventory 5,772,441 13,771,667 1,964,014 Total
current assets 141,935,681 99,498,181 14,189,701 Non-current assets
Long-term investments 1,500,000 4,901,912 699,075 Deferred loan
costs, net of RMB1,238,854 of amortization 10,927,691 4,539,826
647,437 Deferred assets -- 171,583 24,470 Property and equipment,
net of accumulated depreciation of RMB4,690,856 and RMB5,191,489,
respectively 1,072,124 1,969,249 280,840 Intangible assets, net of
accumulated amortization of RMB8,678,751 and RMB24,556,344
respectively 10,704,703 42,288,011 6,030,806 Goodwill -- 46,814,929
6,676,402 Total non-current assets 24,204,518 100,685,509
14,359,030 Total assets 166,140,199 200,183,690 28,548,729
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade
accounts payable 330,220 4,052,516 577,940 Other payables --
2,209,216 315,062 Accrued expenses 4,317,348 3,566,471 508,624
Accrued interest -- 76,619 10,927 Taxes payable 4,487,920 5,101,258
727,504 Deferred Tax -- 4,826,454 688,313 Advances from customers
12,467,830 15,564,504 2,219,695 Royalstone acquisition obligation,
current portion -- 15,860,198 2,261,865 Health Filed acquisition
obligation -- 3,175,318 452,841 Make-whole obligation, current
portion -- 707,312 100,872 Convertible note payable, current
portion 43,065,681 2,785,890 397,303 Total current liabilities
64,668,999 57,925,757 8,260,946 Long-term liabilities Royalstone
acquisition obligation, net of current portion -- 6,093,683 869,036
Make-whole obligation, net of current portion -- 9,290,082
1,324,883 12% RMB75,108,000 ($10,000,000) convertible note payable,
net of RMB53,379,624 unamortized discount based on an imputed
interest rate of 28.9%, net of current portion -- 6,770,666 965,583
Minority shareholder interests -- (375,070) (53,490) Total
long-term liabilities -- 21,779,360 3,106,013 Shareholders' equity
Ordinary shares, $0.0756 U.S. dollars (RMB0.6257) par value;
6,613,756 shares authorized; 2,633,500 shares and 2,633,500 shares
outstanding (2,833,580 shares pro forma), respectively 1,647,781
1,839,898 262,393 Additional paid-in capital 115,919,796
169,131,602 24,120,308 Statutory reserves 3,084,020 3,084,020
439,820 Accumulated foreign currency translation adjustment
(545,625) -- -- Accumulated deficit (18,634,772) (53,576,948)
(7,640,751) Total shareholders' equity 101,471,200 120,478,573
17,181,770 Total liabilities and shareholders' equity 166,140,199
200,183,690 28,548,729 E-FUTURE INFORMATION TECHNOLOGY INC. AND
SUBSIDIARY CONSOLIDATED STATEMENT OF OPERATION INFORMATION USD=RMB
7.0120 Three Months Ended March December 31,2007 31,2007 March
31,2008 RMB RMB RMB US$ (Unaudited) (Unaudited) (Unaudited)
(Unaudited) Revenues Software sales 5,667,407 18,702,618 7,565,110
1,078,881 Hardware sales 125,812 9,816,609 1,409,113 200,957
Service fee income 1,475,465 19,990,060 5,040,249 718,803 Total
Revenues 7,268,684 48,509,287 14,014,472 1,998,641 Cost of revenues
Cost of software 2,317,874 8,363,521 1,845,125 263,138 Cost of
hardware 145,778 7,181,112 1,204,786 171,818 Cost of service fee
income 396,408 4,950,478 1,493,129 212,939 Amortization of acquired
technology 137,500 6,002,248 3,860,243 550,520 Amortization of
software costs 695,172 904,237 896,856 127,903 Total Cost of
Revenue 3,692,732 27,401,597 9,300,139 1,326,318 Gross Profit
3,575,952 21,107,691 4,714,333 672,323 Expenses Research and
development 121,955 194,159 167,288 23,857 General and
administrative 2,918,162 10,097,655 7,870,673 1,122,458 Selling and
distribution expenses 2,173,488 3,986,341 3,759,182 536,107 Total
Expenses 5,213,605 14,278,155 11,797,143 1,682,422 Profit from
operations (1,637,652) 6,829,536 (7,082,810) (1,010,099) Interest
income 1,252,499 764,491 112,611 16,060 Interest expense (11,358)
444,949 (314,520) (44,855) Amortization of discount on notes
payable -- (28,208,015) (488,504) (69,667) Amortization of loan
costs -- (5,373,092) (242,378) (34,566) Income (loss) on
investments -- 844,938 (558,389) (79,633) Foreign exchange loss
(820,292) 99,738 (805,787) (114,915) Minority shareholder income --
32,520 154,491 22,032 Net Income (loss) (1,216,803) (24,564,935)
(9,225,286) (1,315,643) Earnings per ordinary share Basic (0.46)
(9.33) (3.14) (0.45) Diluted (0.46) (9.33) (3.14) (0.45) E-FUTURE
INFORMATION INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS USD=RMB 7.0120 Chinese Yuan (Renminbi) U.S. Dollars
March 31, March 31, 2007 2008 2008 (Audited) (Unaudited)
(Unaudited) Cash flows from operating activities: Net income (loss)
(1,216,803) (9,225,286) (1,315,643) Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities: Depreciation 113,986 150,246 21,427 Amortization of
intangible assets 832,672 4,757,099 678,423 Amortization of
discount on notes payable -- 488,504 69,667 Amortization of
deferred loan costs -- 242,378 34,566 Investment income 558,389
79,633 Compensation expense for options issued to employees --
785,699 112,051 Minority interest -- (154,491) (22,032) Change in
assets and liabilities: Accounts receivable (3,035,187) 2,563,830
365,635 Refundable value added tax 350,920 1,339,792 191,071
Deposits (994,000) (52,965) (7,553) Advances to employees
(1,086,044) 760,997 108,528 Advances to suppliers (1,923,170) -- --
Other receivables 45,576 (2,104,918) (300,188) Prepaid expenses
81,598 (18,222) (2,599) Inventories (1,651,305) (8,021,716)
(1,143,998) Trade payables (900,562) 206,643 29,470 Other payables
-- 84,689 12,078 Accrued expenses 375,730 170,681 24,341 Accrued
interest -- (201,801) (28,779) Taxes payable (694,695) (2,595,273)
(370,119) Deferred Tax -- (455,622) (64,977) Advances from
customers 4,346,787 2,538,526 362,026 Net cash provided by
operating activities (5,354,496) (8,182,818) (1,166,974) Cash flows
from investing activities: Purchases of property and equipment
(171,529) (54,455) (7,766) Payments for software (1,129,131)
(2,015,976) (287,504) Long-term investments (1,500,000) 558,389
79,633 Payment to purchase net assets of Royalstone -- -- -- Loan
to Guarantor -- -- -- Net cash used in investing activities
(2,800,660) (1,512,041) (215,636) Cash flows from financing
activities: Issuance of ordinary shares for cash, net of offering
costs paid 66,414,309 2,667,829 380,466 Issue convertible notes --
-- -- Short-term loan -- (456,804) (65,146) Net cash provided by
(used in) financing activities 66,414,309 2,211,025 315,320 Effect
of exchange rate changes on cash 562,694 (459,836) (65,578) Net
increase in cash 58,821,848 (7,943,671) (1,132,868) Cash and cash
equivalents at beginning of period 61,464,737 67,227,348 9,587,471
Cash and cash equivalents at end of period 120,286,585 59,283,677
8,454,603 Supplemental cash flow information Interest paid 66,593
305,137 43,516 E-FUTURE INFORMATION TECHNOLOGY INC. AND SUBSIDIARY
NON-GAAP MEASURES PERFORMANCE USD=RMB 7.0120 Three Months Ended
March December 31,2007 31,2007 March 31,2008 RMB RMB RMB US$
(Unaudited) (Unaudited) (Unaudited) (Unaudited) NON-GAAP OPERATING
INCOME (LOSS) AND ADJUSTED EBITDA Operating income (loss) (GAAP
Basis) (1,637,652) 6,829,536 (7,082,810) (1,010,098) Adjustments
for non-GAAP measures of performance: Add back amortization of
acquired software technology -- 6,002,248 3,860,243 550,520 Add
back amortization of intangibles 832,672 904,237 896,856 127,903
Add back share- based compensation expenses -- 2,663,105 785,699
112,051 Adjusted non-GAAP operating income (804,980) 16,399,125
(1,540,011) (219,624) Add back depreciation 113,986 163,599 150,246
21,427 Adjusted EBITDA (Earnings before interest, taxes,
depreciation and amortization) (690,994) 16,562,724 (1,389,765)
(198,198) NON-GAAP OPERATING INCOME (LOSS) AND ADJUSTED EBITDA, as
a percentage of revenue Operating income (loss) (GAAP BASIS) -23%
14% -51% -15% Adjustments for non-GAAP measures of performance:
Amortization of acquired software technology -- 12% 28% 28%
Amortization of intangibles 11% 2% 6% 6% Share-based compensation
expenses -- 5% 6% Adjusted non-GAAP operating income -11% 34% -11%
19% Depreciation 2% 0% 1% 1.1% Adjusted EBITDA (Earnings before
interest, taxes, depreciation and amortization) -10% 34% -10% 20%
NON-GAAP EARNINGS PER SHARE Net Income(Loss) (1,216,803)
(24,564,935) (9,225,286) (1,315,643) Amortization of acquired
software technology -- 6,002,248 3,860,243 550,520 Amortization of
intangibles 832,672 904,237 896,856 127,903 Accretion on
convertible notes -- 28,208,015 488,504 69,667 Share-based
compensation expenses -- 2,663,105 785,699 112,051 Adjusted Net
income (384,131) 13,212,670 (3,193,983) (455,502) Adjusted non-GAAP
diluted earnings per share (0.15) 4.41 (1.09) (0.16) Shares used to
compute non-GAAP diluted earnings per share 2,633,500 2,997,921
2,934,419 2,934,419 DATASOURCE: eFuture Information Technology Inc.
CONTACT: eFuture Information Technology Inc., +86-10-5165-0998
x8804, or ; Or Andrew Keller of Ogilvy Public Relations Worldwide,
Beijing, +86-10-8520-3112, or
Copyright