HONG KONG, Aug. 18 /PRNewswire-Asia/ -- -- Total Revenues of
US$28.5 million, an Increase of 47.4% Year-on-Year; -- Adjusted(1)
Operating Income of US$11.6 million, an Increase of 27.7%
Year-on-Year; -- Adjusted Net Income of US$10.7 million, an
Increase of 36.6% Year-on-Year; -- Full year Revenue Guidance
Increased to US$145.0 million and Adjusted EPS Guidance Increased
to US$1.22 Per Share; Longtop Financial Technologies Limited
("Longtop") (NYSE: "LFT"), a leading software developer and
solutions provider targeting the financial services industry in
China, announced today unaudited financial results for the quarter
ended June 30, 2009, which is the first quarter of its fiscal year
ending March 31, 2010. "We are off to a strong start with the
results of our first fiscal quarter demonstrating healthy demand
from Longtop's customers, which has allowed us to increase our full
year guidance. We are seeing strong demand across all customer and
product segments and we see this trend continuing. Longtop is
especially pleased to be recently ranked as the #1 market share
leader by IDC for banking solutions and #2 in the insurance IT
solution market in China for calendar year 2008. As we did in
calendar 2008, we are working hard to continue to expand our market
share and market leadership in China's rapidly growing financial IT
solution market," commented Weizhou Lian, CEO of Longtop. (1)
Explanation of the Company's Adjusted (i.e. non-GAAP) financial
measures and the related reconciliations to GAAP financial measures
are included in the accompanying "Non-GAAP Disclosure" and the
"Consolidated Adjusted Statements of Operations". FISCAL FIRST
QUARTER DETAILED FINANCIAL RESULTS Revenue 2009 Q1 and 2010 Q1
Revenue-US$000s Three months ended June 30, June 30, 2008 2009 %
Change Software Development $16,069 $24,717 53.8% Other Services
$3,259 $3,776 15.9% Total Revenue $19,328 $28,493 47.4% Total
revenues for the quarter ended June 30, 2009, were US$28.5 million,
an increase of 47.4% year-on-year (YoY) from US$19.3 million in the
corresponding year ago period, and exceeded Company guidance of
US$27.0 million. Software development revenues of US$24.7 million
increased YoY by 53.8% and exceeded Company guidance of US$23.0
million. Software development revenues contributed 86.7% of total
revenues. Software Development Revenue by Customer Type-US$000s
Three months ended June 30, June 30, 2008 2009 % Change Big Four
Banks 9,166 11,015 20.2% Other Banks 5,249 9,397 79.0% Insurance
886 2,705 205.3% Enterprises 768 1,600 108.3% Total 16,069 24,717
53.8% Software development revenue from the Big Four Banks in the
first quarter ended June 30, 2009 was US$11.0 million, an increase
of 20.2% YoY. Big Four Banks accounted for 44.6% of software
development revenues for the first quarter, as compared to 57.0% in
the corresponding year ago period. Software development revenue
from Other Banks in the first quarter was US$9.4 million, a YoY
increase of 79.0%. Other Banks accounted for 38.0% of software
development revenues for the three months ended June 30, 2009, as
compared to 32.7% in the corresponding year ago period. Insurance
accounted for US$2.7 million, or 10.9% of software development
revenue in the first quarter, an increase of 205.3% YoY due to a
combination of revenue from new insurance customers and more
revenue per existing customer. Sysnet, a leading IT insurance
services provider acquired by Longtop in Q1 2010, contributed
$190,260 in software development revenue for the three months ended
June 30, 2009. Software development revenue from Enterprises was
US$1.6 million, a YoY increase of 108.3% due primarily to first
time sales of Longtop's treasury management solutions to Enterprise
customers. Gross Margins Three months ended June 30, June 30,
Change 2008 2009 (Decrease) Adjusted Software Development Gross
Margin % 66.4% 69.1% 2.7% Adjusted Other Services Gross Margin %
72.5% 20.2% (52.3%) Adjusted Total Gross Margin % 67.4% 62.6%
(4.8%) Adjusted Software Development Gross Margin was 69.1% in the
first quarter ended June 30, 3009, as compared to 66.4% a year ago.
For the three months ended June 30, 2009, 63.5% of software
development revenue was from customized solutions as compared to
62.7% in the previous year. Adjusted Other Services Gross Margin
declined to 20.2% from 72.5% a year ago due to a YoY decline in
system integration revenues, which are recorded on a net basis,
while system integration department costs, consisting primarily of
headcount and allocated overhead, were stable; investment in
additional headcount; and a higher mix of lower gross margin ATM
revenues resulting from our acquisition during the 2009 fiscal year
of Huayuchang, a provider of ATM maintenance services. As a result
of the decline in Adjusted Other Services Gross Margin, Adjusted
Total Gross Margin declined to 62.6% in the first quarter from
67.4% a year ago. As the first quarter is expected to be the lowest
revenue quarter in fiscal 2010, Adjusted Total Gross Margin is
expected to increase in future quarters and full year Adjusted
Total Gross Margin, including the impact of the Sysnet acquisition,
which is dilutive to margins but accretive to earnings, is expected
to reach the Company's previous guidance of 67.0%. Operating
Expenses Three months ended June 30, June 30, 2008 2009 % Change
Adjusted Operating Expenses - US$000s 3,968 6,280 58.3% Adjusted
Operating Expenses - % of revenue 20.5% 22.0% -- US GAAP Operating
Expenses - US$000s 4,998 7,542 50.9% US GAAP Operating Expenses - %
of revenue 25.8% 26.4% -- Meeting guidance, Adjusted Operating
Expenses of $6.3 million were 22.0% of revenue for the three months
ended June 30, 2009, as compared to 20.5% in the corresponding year
ago period. Adjusted Operating Expenses increased by 58.3% YoY,
which was slightly higher than the YoY software development revenue
growth of 53.8% primarily due to the inclusion of Sysnet operating
expenses for the first time in Q1 2010. Operating and Net Income
Three months ended June 30, June 30, 2008 2009 % Change Adjusted
Operating Income - US$000s 9,057 11,565 27.7% Adjusted Operating
Income - % of revenue 46.9% 40.6% -- Adjusted Operating Income of
US$11.6 million in the first quarter represented an increase of
27.7% YoY and exceeded Company guidance of US$11.0 million.
Adjusted Operating Margin of 40.6% was in line with Company
guidance of 41.0% and is expected to increase to 47.0% for the full
year, as the first quarter is the lowest revenue quarter. Sysnet,
which was consolidated for the first time in Q1 2010, had an
adjusted operating loss for the quarter ended June 30, 2009 of
US$583,000 that had not been included in the Company guidance of
US$11.0 million. Sysnet is expected to be accretive to operating
income for fiscal year 2010. Three months ended June 30, June 30,
2008 2009 % Change Adjusted Net Income - US$000s 7,827 10,691 36.6%
Adjusted Net income per Diluted Share 0.15 0.20 33.3% Adjusted Net
Income - % of revenue 40.5% 37.5% -- US GAAP Net Income - US$000s
6,087 8,384 37.7% US GAAP Net income per Diluted Share 0.12 0.16
33.3% US GAAP Net Income - % of revenue 31.5% 29.4% --
Reconciliation between US GAAP Net Income and Adjusted Net Income
Three months ended June 30, June 30, 2008 2009 % Change Adjusted
Net Income - US$000s $7,827 $10,691 36.6% Stock compensation $1,314
$1,475 12.3% Amortization of acquired intangible assets $426 $742
74.2% Amortization of acquired deferred compensation $-- $90 --
Sub-total $1,740 $2,307 32.6% US GAAP Net Income $6,087 $8,384
37.7% Adjusted Net Income for the quarter ended June 30, 2009 of
US$10.7 million or US$0.20 per fully diluted share, represented an
increase of 36.6% YoY as compared to Adjusted Net Income of US$7.8
million in the corresponding year ago period and exceeded Company
guidance of US$10.0 million. US GAAP net income for the quarter
ended June 30, 2009 of US$8.4 million or US$0.16 per fully diluted
share, represented an increase of 37.7% as compared to US GAAP net
income of US$6.1 million in the corresponding year ago period.
Unrestricted cash balances at June 30, 2009, were US$215.1 million,
giving the Company significant resources for potential acquisitions
in the still fragmented financial IT services sector in China.
Commenting on the results, Derek Palaschuk, CFO of Longtop, said,
"We have executed to deliver outstanding top and bottom line
financial results during the first fiscal quarter in what is
traditionally our lowest revenue and net income quarter in the
fiscal year. On the back of a strong backlog and pipeline in our
core software development business, we are able to increase our
full year revenue and net income guidance even though our non-core
Other Services business, which accounts for less than fifteen
percent of revenues, is facing some headwinds. Consistent with
previous years, in Q2 and Q3 2010 we expect significant
improvements from this quarter in our margins and cash flow from
operations." BUSINESS OUTLOOK Longtop anticipates for the quarter
ending September 30, 2009: i) Total revenues of US$37.5 million,
representing an increase of 33.0% YoY from revenues of US$28.2
million in the corresponding year ago period. Software development
revenues are expected to be US$34.0 million, a YoY increase of
44.1% from US$23.6 million in the corresponding year ago period;
ii) Adjusted Operating Income of US$18.5 million, representing an
increase of 18.6% YoY from Adjusted Operating Income of US$15.6
million in the corresponding year ago period. iii) On the
assumption a $3.0 million income tax refund for being designated as
a "Key Software Company" will be received in Q2 2010, Adjusted Net
Income of US$19.5 million or US$0.37 per diluted share,
representing an increase of 20.4% YoY from Adjusted Net Income of
US$16.2 million in the corresponding year ago period. If the income
tax refund is received in Q3 2010, Adjusted Net Income is expected
to be $16.5 million or US$0.31 per diluted share. Longtop
anticipates for its fiscal year ending March 31, 2010: i) Total
revenues of US$145.0 million, representing an increase of 36.4% YoY
from revenues of US$106.3 million in fiscal 2009. Software
development revenues are expected to be US$127.0 million, a YoY
increase of 41.7% from US$89.6 million in fiscal 2009; ii) Adjusted
Operating Income of US$69.0 million, an increase of 31.4% YoY from
Adjusted Operating Income of US$52.5 million in fiscal 2009. iii)
Adjusted Net Income of US$65.0 million or US$1.22 per diluted
share, an increase of 26.0% YoY from Adjusted Net Income of US$51.6
million in fiscal 2009. CONFERENCE CALL AND WEBCAST Longtop's
senior management team will host a conference call and audio web
cast at 8:00 pm US Eastern Time/ 5:00 pm U.S. Pacific Time on
August 18, 2009 (8:00 am Beijing/Hong Kong time on August 19,
2009). The conference call will last for approximately one hour.
The dial-in numbers for the conference call are as follows: U.S.
Toll Free: 1866 549 1292 China Toll Free: 800 701 1223 Hong Kong
and International: +852-3005-2050 Passcode: 765115# Additionally, a
live and archived web cast of this call will be available on
Longtop's website at http://www.longtop.com/en . NON-GAAP
DISCLOSURE ("ADJUSTED") To supplement the unaudited consolidated
financial statements presented in accordance with United States
Generally Accepted Accounting Principles ("GAAP"), Longtop's
management reports and uses non-GAAP ("Adjusted") measures of
revenues, cost of revenues, operating expenses, net income and net
income per share, which are adjusted from results based on GAAP. To
supplement our financial results presented on a GAAP basis, we use
the non-GAAP measures to exclude certain business combination
accounting entries and expenses related to acquisitions, as well as
other significant expenses including stock-based compensation that
we believe are helpful in understanding our past financial
performance and our future results. Our management regularly uses
our supplemental non-GAAP financial measures internally to
understand, manage and evaluate our business and make operating
decisions. These non-GAAP measures are among the primary factors
management uses in planning for and forecasting future periods.
Compensation of our executives is based in part on the performance
of our business based on these non-GAAP measures. Management
believes these non-GAAP financial measures enhance the user's
overall understanding of our current financial performance and our
prospects for the future. Specifically, we believe the non-GAAP
financial measures provide useful information to both management
and investors by excluding certain items that we believe are not
indicative of our core operating results. The presentation of this
additional information is not meant to be considered superior to,
in isolation from or as a substitute for results prepared in
accordance with US GAAP. We encourage investors to examine the
reconciling adjustments between the GAAP and non-GAAP measures
contained in this release and which we discuss below. Readers are
cautioned not to view non-GAAP results on a stand-alone basis or as
a substitute for results under GAAP, or as being comparable to
results reported or forecasted by other companies. Definitions of
Non-GAAP Measures Adjusted Cost of Revenue is defined as cost of
revenue excluding, if applicable: (1) non-cash compensation expense
and (2) amortization of acquired intangibles. Adjusted Gross Margin
is defined as Adjusted Revenue less Adjusted Cost of Revenue.
Adjusted Operating Expenses is defined as operating expenses
excluding, if applicable: (1) non-cash compensation expense, (2)
amortization of acquired intangibles, deferred compensation arising
on acquisition and goodwill impairment, and (3) one-time items.
Adjusted Operating Income is defined as Adjusted Gross Margin less
Adjusted Operating Expenses. Adjusted Net Income is defined as
Adjusted Operating Income plus/minus other income/(expenses), less
income taxes, excluding: (1) one-time items and (2) discontinued
operations. Adjusted EPS is defined as Adjusted Net Income divided
by diluted shares. One-Time Items, if applicable, are excluded from
Adjusted Operating Income and Adjusted Net Income. These items are
one-time in nature and non-recurring, infrequent or unusual, and
have not occurred in the past two years or are not expected to
recur in the next two years. GAAP results include one-time items.
Expenses That Are Excluded From Our Non-GAAP Measures Non-cash
compensation expense consists principally of expense associated
with the grants, including unvested grants assumed in acquisitions,
of restricted stock, restricted stock units and stock options.
These expenses are not paid in cash, and we include the related
shares in our fully diluted shares outstanding which, for
restricted stock units and stock options, are included on a
treasury method basis. Longtop's management believes excluding the
share-based compensation expense from its non-GAAP financial
measure is useful for itself and investors. Although share-based
compensation is a key incentive offered to our employees, and we
believe such compensation contributed to the revenues earned during
the periods presented and also believe it will contribute to the
generation of future period revenues, and as share-based
compensation expense does not involve any upfront or subsequent
cash outflow, Longtop does not factor this in when evaluating and
approving expenditures or when determining the allocation of its
resources to its business segments. As a result, the monthly
financial results for internal reporting and any performance
measure for commission and bonus are based on non-GAAP financial
measures that exclude share-based compensation expense.
Amortization of acquired intangibles is a non-cash expense relating
to acquisitions. At the time of an acquisition, the intangible
assets of the acquired company, such as backlog, customer
relationships, and intellectual property, are valued and amortized
over their estimated lives. While it is likely that we will have
significant intangible amortization expense as we continue to
acquire companies, we have excluded the effect of amortization of
intangible assets from our non-GAAP financial measures.
Amortization of intangible assets is inconsistent in amount and
frequency and is significantly affected by the timing and size of
our acquisitions. Investors should note that the use of intangible
assets contributed to revenues earned during the periods presented
and will contribute to future period revenues as well. Acquisition
proceeds allocated to deferred compensation arises where a portion
of the purchase price paid to shareholders is considered
compensation expense rather than purchase price under US GAAP.
Deferred compensation arising on acquisition is inconsistent in
amount and frequency and is significantly affected by the timing
and size of our acquisitions. Investors should note that the use of
deferred compensation arising on acquisition contributed to
revenues earned during the periods presented and will contribute to
future period revenues as well. Safe Harbor Statement Under the
Private Securities Litigation Reform Act of 1995 It is currently
expected that the Business Outlook will not be updated until the
release of Longtop's next quarterly earnings announcement; however,
Longtop reserves the right to update its Business Outlook at any
time for any reason. This announcement contains forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. In some cases,
you can identify forward-looking statements by such terms as
"believes," "expects," "anticipates," "intends," "estimates," the
negative of these terms, or other comparable terminology. Factors
that could cause actual results to differ include the growth of the
financial services industry in China; the amount and seasonality of
IT spending by banks and other financial services companies;
competition and potential pricing pressures; our revenue growth and
solution and service mix; our ability to successfully develop,
introduce and market new solutions and services; our ability to
effectively manage our operating costs and expenses; our reliance
on a limited number of customers that account for a high percentage
of our revenues; a possible future shortage or limited availability
of employees; general economic and business conditions; the
volatility of our operating results and financial condition; our
ability to attract or retain qualified senior management personnel
and research and development staff; the outbreak of health
epidemics; the planned relocation of our headquarters; People's
Republic of China, or PRC, regulatory changes and interpretations;
and other risks detailed in the Company's filings with the
Securities and Exchange Commission. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about the companies and the industry. The Company
undertakes no obligation to update forward-looking statements to
reflect subsequent occurring events or circumstances, or to changes
in its expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these forward
looking statements are reasonable, they cannot assure you that
their expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the
anticipated results. Our actual results of operations for the
quarter and year ended March 31, 2009 are not necessarily
indicative of our operating results for any future periods. Any
projections in this release are based on limited information
currently available to us, which is subject to change. About
Longtop Financial Technologies Limited Longtop is a leading
software development and solutions provider targeting the financial
services industry in China. Longtop develops and delivers a
comprehensive range of software applications and solutions with a
focus on meeting the rapidly growing IT needs of the financial
services institutions in China. Longtop has six solution delivery
centers, three research and development centers and seventy-five
ATM service centers located in 27 provinces throughout China. For
more information, please visit: http://www.longtop.com/en For more
information, please contact: For Investors: Longtop Financial
Technologies Limited Charles Zhang, CFA Email: Phone:
+86-10-8421-7758 For Media: IR Inside BV Caroline Straathof Email:
Phone: +31-6-5462-4301 CONSOLIDATED BALANCE SHEETS March 31, June
30, 2009 2009 (In U.S. dollar thousands, except share and per share
data) Assets Current assets: Cash and cash equivalents $238,295
$215,121 Restricted cash 463 38 Accounts receivable, net 29,861
41,514 Inventories 4,982 4,246 Amounts due from related parties 682
1,181 Deferred tax assets 979 673 Other current assets 4,712 10,512
Total current assets 279,974 273,285 Fixed assets, net 14,858
20,137 Prepaid land use right 5,167 5,143 Intangible assets, net
11,526 28,081 Goodwill 24,837 38,651 Deferred tax assets 1,479
1,479 Other assets 632 541 Total assets $338,473 $367,317
Liabilities and shareholders' equity Current liabilities:
Short-term borrowings $486 $4,788 Accounts payable 3,299 3,995
Deferred revenue 16,010 15,745 Amounts due to related parties 17 36
Deferred tax liabilities 867 933 Accrued and other current
liabilities 23,810 29,092 Total current liabilities 44,489 54,589
Long-term liabilities: Obligations under capital leases, net of
current portion 98 -- Deferred tax liabilities 1,242 5,554 Other
non-current liabilities 286 3,662 Total liabilities 46,115 63,805
Shareholders' equity: Ordinary shares $0.01 par value
(1,500,000,000 shares authorized, 51,036,816 and 51,295,811 shares
issued and outstanding as of March 31, 2009 and June 30, 2009,
respectively) $510 $513 Additional paid-in capital 243,194 245,811
Retained earnings 29,451 37,835 Accumulated other comprehensive
income 19,203 19,353 Total shareholders' equity 292,358 303,512
Total liabilities and shareholders' equity $338,473 $367,317
CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended June 30,
June 30, 2008 2009 (In U.S. dollar thousands, except share and per
share data) Revenues: Software development $16,069 $24,717 Other
services 3,259 3,776 Total revenues 19,328 28,493 Cost of revenues:
Software development 5,808 8,319 Other services 1,205 3,374 Total
cost of revenues 7,013 11,693 Gross profit 12,315 16,800 Operating
expenses: Research and development 1,109 1,517 Sales and marketing
1,792 3,259 General and administrative 2,097 2,766 Total operating
expenses 4,998 7,542 Income from operations 7,317 9,258 Other
income (expenses): Interest income 1,907 1,008 Interest expense
(267) (16) Other income (expense), net (1,012) 85 Total other
income 628 1,077 Income before income tax expense 7,945 10,335
Income tax expense (1,858) (1,951) Net income 6,087 8,384 Net
income per share: Basic ordinary share $0.12 $0.16 Diluted $0.12
$0.16 Shares used in computation of net income per share: Basic
ordinary share 50,322,038 51,191,640 Diluted 52,512,824 53,237,958
Includes share-based compensation related to: Cost of revenues
software development $360 $438 Cost of revenues other services 59
69 General and administrative expenses 472 440 Sales and marketing
expenses 342 428 Research and development expenses 81 100 UNAUDITED
CONSOLIDATED ADJUSTED STATEMENTS OF OPERATIONS Three Months Ended
June 30, 2008 June 30, 2009 (In U.S. dollar thousands, except share
and per share data) Revenues: Software development 16,069 24,717
Other services 3,259 3,776 Total revenues 19,328 28,493 Cost of
revenues: Software development 5,808 8,319 Other services 1,205
3,374 Total cost of revenues 7,013 11,693 Cost of revenue
adjustments: Share-based compensation software development (360)
(438) Share-based compensation other services (59) (69)
Amortization of acquired intangible assets other services (249)
(257) Amortization of acquired intangible assets software
development (42) (191) Amortization of acquired deferred
compensation other services -- (33) Amortization of acquired
deferred compensation software development -- (57) Adjusted cost of
revenues: Software development 5,406 7,633 Other services 897 3,015
Total adjusted cost of revenues 6,303 10,648 Gross profit 12,315
16,800 Adjusted gross profit 13,025 17,845 Operating expenses:
Research and development 1,109 1,517 Sales and marketing 1,792
3,259 General and administrative 2,097 2,766 Total operating
expenses 4,998 7,542 Operating expense adjustments: Share-based
compensation research and development (81) (100) Share-based
compensation sales and marketing (342) (428) Share-based
compensation general and administrative (472) (440) Amortization of
acquired intangible assets sales and marketing (107) (230)
Amortization of acquired intangible assets general and
administrative (28) (64) Adjusted operating expenses: Research and
development 1,028 1,417 Sales and marketing 1,343 2,601 General and
administrative 1,597 2,262 Total adjusted operating expenses 3,968
6,280 Income from operations 7,317 9,258 Adjusted income from
operations 9,057 11,565 Other income (expenses): Interest income
1,907 1,008 Interest expense (267) (16) Other (expenses) income,
net (1,012) 85 Total other income 628 1,077 Income before income
tax expense 7,945 10,335 Adjusted income before income tax expense
9,685 12,642 Income tax expense (1,858) (1,951) Net income 6,087
8,384 Adjusted net income 7,827 10,691 Net income per share: Basic
ordinary share $0.12 $0.16 Diluted $0.12 $0.16 Adjusted net income
per share: Basic ordinary share $0.16 $0.21 Diluted $0.15 $0.20
Shares used in computation of net income and adjusted net income
per share: Basic ordinary share 50,322,038 51,191,640 Diluted
52,512,824 53,237,958 CONSOLIDATED STATEMENTS OF CASH FLOWS Three
Months Ended June 30, 2008 June 30, 2009 (In U.S. dollar thousands,
except share and per share data) Cash flows from operating
activities: Net income $6,087 $8,384 Adjustments to reconcile net
income to net cash provided by operating activities: Share-based
compensation 1,314 1,474 Depreciation of fixed assets 614 703
Amortization of intangible assets 471 833 Provision for doubtful
accounts (110) (26) Loss on disposal of fixed assets 1 5 Deferred
income taxes 29 307 Changes in assets and liabilities, net of
effects of acquisitions: Accounts receivable (4,434) (11,347)
Inventories (1,623) 816 Other current assets (859) (5,657) Amounts
due from related parties -- (498) Prepaid land use right (5,275) 27
Other non-current assets 99 91 Other non-current liabilities (194)
4 Accounts payable 4,889 (821) Deferred revenue 1,873 (274) Amounts
due to related parties -- 19 Accrued and other current liabilities
(6,257) (1,968) Net cash used in operating activities (3,375)
(7,928) Cash flows from investing activities: Change in restricted
cash 4,526 425 Purchase of fixed assets (5,594) (3,902) Purchase of
intangible assets (3) (138) Long term investment (2,613) --
Acquisitions, net of cash acquired -- (16,779) Net cash used in
investing activities (3,684) (20,394) Cash flows from financing
activities: Proceeds from short-term borrowings -- 4,391 Stock
options exercised 513 824 Repayments of capital leases obligations
(433) (187) Amounts due to related parties (54) -- Net cash
provided by financing activities 26 5,028 Effect of exchange rates
differences 4,035 120 Net decrease in cash and cash equivalents
(2,998) (23,174) Cash and cash equivalents, beginning of period
204,526 238,295 Cash and cash equivalents, end of period $201,528
$215,121 Supplemental disclosure of cash flow information: Income
taxes paid $2,023 $1,471 Interest paid $270 $16 Supplemental
disclosure of non-cash investing and financing activities: Fixed
assets purchased under capital leases $569 $-- Acquisition: Cash
consideration $2,613 $16,779 Cash consideration payable $-- $10,550
Assets acquired $2,613 $27,329 DATASOURCE: Longtop Financial
Technologies Limited CONTACT: For Investors: Longtop Financial
Technologies Limited - Charles Zhang, CFA, , or +86-10-8421-7758;
For Media: IR Inside BV - Caroline Straathof, , or +31-6-5462-4301
Web Site: http://www.longtop.com/en
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