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Hollysys Automation Technologies Reports Unaudited Financial Results for the Fiscal Year and the Fourth Quarter Ended June 30, 2022

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Fiscal Year 2022 Financial Highlights

  • Total revenues were $707.5 million, an increase of 19.2% compared to the comparable prior year period.
  • Gross margin was 33.8%, compared to 36.8% for the comparable prior year period. Non-GAAP gross margin was 34.0%, compared to 36.8% for the comparable prior year period.
  • Net income attributable to Hollysys was $83.2 million, a decrease of 7.3% compared to the comparable prior year period. Non-GAAP net income attributable to Hollysys was $94.2 million, a decrease of 5.5% compared to the comparable prior year period. 
  • Diluted earnings per share was $1.35, a decrease of 7.5% compared to the comparable prior year period. Non-GAAP diluted earnings per share was $1.53, a decrease of 5.6% compared to the comparable prior year period.
  • Net cash provided by operating activities was $54.5 million.
  • Days sales outstanding (“DSO”) of 171 days, compared to 180 days for the comparable prior year period.
  • Inventory turnover days of 58 days, compared to 51 days for the comparable prior year period.

Fourth Quarter of Fiscal Year 2022 Financial Highlights

  • Total revenues were $182.1 million, an increase of 14.7% compared to the comparable prior year period.
  • Gross margin was 33.7%, compared to 37.8% for the comparable prior year period. Non-GAAP gross margin was 33.9%, compared to 37.9% for the comparable prior year period.
  • Net income attributable to Hollysys was $23.0 million, an increase of 4.9% compared to the comparable prior year period. Non-GAAP net income attributable to Hollysys was $24.7 million, a decrease of 12.0% compared to the comparable prior year period.
  • Diluted earnings per share was $0.37, an increase of 2.8% compared to the comparable prior year period. Non-GAAP diluted earnings per share was $0.40, a decrease of 13.0% compared to the comparable prior year period.
  • Net cash provided by operating activities was $38.8 million.
  • DSO of 174 days, compared to 194 days for the comparable prior year period.
  • Inventory turnover days of 73 days, compared to 47 days for the comparable prior year period.

See the section entitled “Non-GAAP Measures” for more information about non-GAAP gross margin, non-GAAP net income attributable to Hollysys and non-GAAP diluted earnings per share.

BEIJING, Aug. 12, 2022 /PRNewswire/ — Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) (“Hollysys” or the “Company”), a leading provider of automation and control technologies and applications in China, today announced its unaudited financial results for fiscal year 2022 and the fourth quarter ended June 30, 2022. Dr. Changli Wang, the CEO and director of Hollysys, stated:

“We are delighted to report another fiscal year and the fourth quarter with solid financial and operational performance and firmly adhered to our tenet of automation for better lives, even under an unfavorable environment of the COVID-19 pandemic which constantly brings challenges. We are confident with our outstanding technologies, satisfactory services and established huge customer bases. Looking forward, Hollysys will unswervingly make progress based on the united efforts of our motivated and inspired management team, experts and employees, and will embrace jointly with our customers and investors for a more prosperous and vigorous future.”

The Industrial Automation (“IA”) business maintained its strong momentum with increased market shares as Hollysys undertook more key and challenging projects, which are expected to relieve the pain points of relevant industries by enhancing the efficiency in operation and contribute to achieving the national carbon peaking and carbon neutrality goals. In the chemical and petrochemical field, we adhere to the development strategy of enhancing our focus on significant projects in addition to normal projects. For example, a one-million-ton ethylene project was signed in Tianjin in which we will provide over 100,000 and 20,000 input/output (“I/O”) points that will be connected to our Optical Bus Control System (“OCS”)—the new released version of Distributed Control System (“DCS”), and Safety Instrumented System (“SIS”), along with Gas Detection System (“GDS”), respectively. The success in signing this project proves that Hollysys is capable of supplying control systems for any chemical process, as the advanced control of ethylene is known as the most sophisticated and critical process in the industry. Meanwhile, we present remarkable achievements and maintain our cooperation with national key customers like Sinopec Group and China National Petroleum Corporation (“CNPC”). For instance, a contract of huge SCADA system for the Guangxi Long-distance Natural Gas Pipeline Project was signed with Sinopec. Additionally, Hollysys also provided CNPC with Hia Advanced Process Control (“Hia APC”) for producing 450,000 tons of synthetic ammonia / 800,000 tons of urea fertilizer, which as another milestone, was the first set of a 100% domestic control system application in the large chemical fertilizer industry in China.

We have also manifested remarkable performance and witnessed business growth in the valve and instrument market. For example, we signed with a world leading copper pipe and rod manufacturer for a Phase I project of 150,000 tons of high-performance copper foil, in which Hollysys provided holistic customized integrated, intelligent solutions, and over 4000 sets of various types of meters and valves. The project represents another milestone for Hollysys in electrical instrument installation engineering.

We continue our business growth by upgrading the capabilities of products in the pharmaceutical field. For example, a project for a pharmaceutical company was delivered in which Hollysys provided a customized intelligent control system based on HiaBatch. HiaBatch is remarkably flexible and efficient, which facilitates customers to operate more smartly and is highly recognized among customers in the industry. We successively signed new projects, including a Good Manufacturing Practice (“GMP”) Application Programming Interface (“API”) pilot test and production project along with the supply of DCS, SIS, electrical instrument and Batch Processing System (“BATCH”).

Meanwhile, we constantly upgrade our Engineering Procurement Construction (“EPC”) capacity. In the fourth fiscal quarter, we signed two breakthrough EPC projects regarding the whole workshop’s engineering, which the lays foundation for our further exploration of EPC projects in the future.

Our business has witnessed continuous development in Indonesia and other overseas markets, and our control system, instruments and technologies are widely recognized. We have signed with Indonesian companies a contract for an electrical instrument engineering project and an additional contract of Phase II DCS and electrical instruments. To further cultivate and grow our business in the Central and Southeast Asia market, Hollysys will persevere in attracting talented people, optimizing market promotion and enhancing its overseas brand image.

In the high-speed rail sector, we continued to deliver on existing projects while retaining our market position. We provided on-ground solutions for Xiangyang East-Wanzhou North high-speed railway and participated in the reconstruction of the Beijing Fengtai Hub, which is now Asia’s largest railway hub. Meanwhile, we continued to explore opportunities in service markets, covering replacement and overhaul, upgrades, spare parts sales, etc. The highlight for the service business is the successful launch of China’s fifth high-speed railway with an operating speed of 350 km/h, the Shijiazhuang-Wuhan High-speed Railway. In this project, Hollysys actively responded to our client’s demand for speed acceleration by upgrading the existing on-board and on-ground products. In the subway sector, our SCADA system for Kunming Subway Line 5 was successfully delivered. This marked another contribution of Hollysys to Kunming rail construction following the successful completion of the Kunming Subway Line 3 project and Kunming Changshui Airport Express project (“Kunming Airport project”),. In the subway signaling business, we won the automated people mover project of the T3B terminal and the fourth runway of Chongqing Jiangbei International Airport. This project, which follows our first subway signaling project—Kunming Airport project—represents another significant advancement for Hollysys in subway signaling. The project will utilize our proprietary GoA4 Fully Automatic Operation system and achieve effective and energy-saving operations. We are grateful for the industry recognition gained from our clients in the past year and we expect to make more contributions to China’s urban rail transit system in the future.

The mechanical and electrical solutions (“M&E”) segment of the Company manifests a stable performance with our smooth executions on various projects. The risk monitor and control will still be our future focus in this field.

With our continuous dedication to the industry and the support of experienced and passionate experts, we believe that we will continue to create greater value for our clients and shareholders.

Fiscal Year and the Fourth Quarter Ended June 30, 2022 Unaudited Financial Results Summary

(In USD thousands, except for %, number of shares and per share data)

Three months ended

June 30,

Fiscal year ended

June 30,

,

2022

2021

%
Change

2022

2021

%
Change

Revenues

$

182,115

158,764

14.7 %

$

707,462

593,466

19.2 %

    Integrated solutions contracts
revenue

$

149,292

126,237

18.3 %

$

573,567

460,180

24.6 %

    Products sales

$

11,823

7,098

66.6 %

$

38,486

28,667

34.3 %

    Service rendered

$

21,000

25,429

(17.4) %

$

95,409

104,619

(8.8) %

Cost of revenues

$

120,780

98,705

22.4 %

$

468,105

375,187

24.8 %

Gross profit

$

61,335

60,059

2.1 %

$

239,357

218,279

9.7 %

Total operating expenses

$

42,215

44,402

(4.9) %

$

164,813

131,034

25.8 %

    Selling

$

10,863

9,601

13.1 %

$

45,301

35,197

28.7 %

    General and administrative

$

23,323

30,260

(22.9) %

$

80,241

69,982

14.7 %

    Research and development

$

16,629

14,194

17.2 %

$

69,580

55,954

24.4 %

    VAT refunds and government
subsidies

$

(8,600)

(9,653)

(10.9) %

$

(30,309)

(30,099)

0.7 %

Income from operations

$

19,120

15,657

22.1 %

$

74,544

87,245

(14.6) %

Other income, net

$

256

6,863

(96.3) %

$

2,185

10,449

(79.1) %

Foreign exchange gain (loss)

$

4,000

(942)

(524.6) %

$

1,789

(6,219)

(128.8) %

Gains on disposal of investments in an
    equity investee

$

–

–

–

$

7,995

–

–

Impairment loss of investments in cost
    investees

$

(773)

–

–

$

(773)

–

–

Share of net income (loss) of equity
    investees

$

1,280

(1,331)

(196.2) %

$

1,838

604

204.3 %

Losses on disposal of subsidiaries

–

–

–

(3)

–

–

Gains on disposal of an investment in
    securities

$

–

3,323

(100.0) %

$

–

3,323

(100.0) %

Dividend income from investments in
    securities

$

–

456

(100.0) %

$

85

912

(90.7) %

Interest income

$

3,363

4,278

(21.4) %

$

12,698

14,131

(10.1) %

Interest expenses

$

(141)

(125)

12.8 %

$

(731)

(553)

32.2 %

Income tax expenses

$

3,928

6,317

(37.8) %

$

16,634

20,554

(19.1) %

Net income (loss) attributable to non-

    controlling interests

$

155

(75)

(306.7) %

$

(189)

(371)

(49.1) %

Net income attributable to Hollysys
     Automation Technologies Ltd.

$

23,022

21,937

4.9 %

$

83,182

89,709

(7.3) %

Basic earnings per share

$

0.38

0.36

5.6 %

$

1.36

1.48

(8.1) %

Diluted earnings per share

$

0.37

0.36

2.8 %

$

1.35

1.46

(7.5) %

Share-based compensation expenses

$

1,327

6,036

(78.0) %

$

9,709

9,724

(0.2) %

Amortization of acquired intangible
assets

$

353

90

292.2 %

$

1,356

316

329.1 %

Non-GAAP net income attributable to
     Hollysys Automation Technologies Ltd.(1)

$

24,702

28,063

(12.0) %

$

94,247

99,749

(5.5) %

Non-GAAP basic earnings per share(1)

$

0.40

0.46

(13.0) %

$

1.54

1.65

(6.7) %

Non-GAAP diluted earnings per share(1)

$

0.40

0.46

(13.0) %

$

1.53

1.62

(5.6) %

Basic weighted average number of
    ordinary shares outstanding

61,195,317

60,698,727

0.8 %

61,007,506

60,566,709

0.7 %

Diluted weighted average number of
    ordinary shares outstanding

61,788,905

61,025,425

1.3 %

61,568,176

61,513,749

0.1 %

________

(1) See the section entitled “Non-GAAP Measures” for more information about these non-GAAP measures.

Operational Results Analysis for the Fiscal Year Ended June 30, 2022

Compared to the prior fiscal year, the total revenues for fiscal year 2022 increased from $593.5 million to $707.5 million, representing an increase of 19.2%. Broken down by the revenue types, integrated solutions contracts revenue increased by 24.6% to $573.6 million, products sales revenue increased by 34.3% to $38.5 million, and services revenue decreased by 8.8% to $95.4 million.

The Company’s total revenues can also be presented by segment as shown in the table below:

(In USD thousands)

Fiscal year ended June 30,

2022

2021

$

% to Total
Revenues

$

% to Total
Revenues

Industrial Automation

439,918

62.2

337,052

56.8

Rail Transportation Automation

183,785

26.0

188,171

31.7

Mechanical and Electrical Solution

83,759

11.8

68,243

11.5

Total

707,462

100.0

593,466

100.0

Gross margin was 33.8% for fiscal year 2022, as compared to 36.8% for the prior fiscal year. Gross margins for integrated solutions contracts, product sales, and services rendered were 26.4%, 73.4% and 62.7% for fiscal year 2022, as compared to 26.9%, 81.5% and 68.1% for the prior fiscal year, respectively. Non-GAAP gross margin was 34.0% for fiscal year 2022, as compared to 36.8% for the prior fiscal year. Non-GAAP gross margin of integrated solutions contracts was 26.6% for fiscal year 2022, as compared to 27.0% for the prior fiscal year. See the section entitled “Non-GAAP Measures” for more information about non-GAAP gross margin and non-GAAP gross margin of integrated solutions contracts.

Selling expenses were $45.3 million for fiscal year 2022, representing an increase of $10.1 million, or 28.7%, compared to $35.2 million for the prior fiscal year. The increase was in line with our sales growth. Selling expenses as a percentage of total revenues were 6.4% and 5.9% for fiscal year 2022 and 2021, respectively. The increase of selling expenses was mainly due to the significant increase of sales scale year over year.

General and administrative expenses were $80.2 million for fiscal year 2022, representing an increase of $10.3 million, or 14.7%, compared to $70.0 million for the prior fiscal year, which was primarily due to a $7.5 million increase in credit losses and a $5.7 million increase in labor cost. Share-based compensation expenses were $9.7 million and $9.7 million for fiscal year 2022 and 2021, respectively. General and administrative expenses as a percentage of total revenues were 11.3% and 11.8% for fiscal year 2022 and 2021, respectively. 

Research and development expenses were $69.6 million for fiscal year 2022, representing an increase of $13.6 million, or 24.4%, compared to $56.0 million for the prior fiscal year, which was primarily due to our increased investments in research and development in connection with the upgrading of mainstream products and new products developed to meet the needs of the digital infrastructure market, such as the new generation DCS Macs V7, SIS Upgrade, OCS, smart factory and smart city rail. R&D expenses as a percentage of total revenues were 9.8% and 9.4% for fiscal year 2022 and 2021, respectively.

The VAT refunds and government subsidies were $30.3 million for fiscal year 2022, as compared to $30.1 million for the prior fiscal year, representing a $0.2 million, or 0.7%, increase.

The income tax expenses and the effective tax rate were $16.6 million and 16.7% for fiscal year 2022, as compared to $20.6 million and 18.7% for the prior fiscal year. The effective tax rate fluctuates, as the Company’s subsidiaries contributed different pre-tax income at different tax rates.

Net income attributable to Hollysys was $83.2 million for fiscal year 2022, representing a decrease of 7.3% from $89.7 million reported in the prior fiscal year. Non-GAAP net income attributable to Hollysys was $94.2 million or $1.53 per diluted share. See the section entitled “Non-GAAP Measures” for more information about non-GAAP net income attributable to Hollysys.

Diluted earnings per share was $1.35 for fiscal year 2022, representing a decrease of 7.5% from $1.46 in the prior fiscal year. Non-GAAP diluted earnings per share was $1.53 for fiscal year 2022, representing a decrease of 5.6% from $1.62 in the prior fiscal year. These were calculated based on 61.6 million and 61.5 million diluted weighted average ordinary shares outstanding for the fiscal year ended June 30, 2022 and 2021, respectively. See the section entitled “Non-GAAP Measures” for more information about non-GAAP diluted earnings per share.

Operational Results Analysis for the Fourth Quarter Ended June 30, 2022

Compared to the fourth quarter of the prior fiscal year, the total revenues for the three months ended June 30, 2022 increased from $158.8 million to $182.1 million, representing an increase of 14.7%. Broken down by the revenue types, integrated solutions contracts revenue increased by 18.3% to $149.3 million, products sales revenue increased by 66.6% to $11.8 million, and services revenue decreased by 17.4% to $21.0 million.

The Company’s total revenues can also be presented by segment as shown in the table below:

(In USD thousands)

Three months ended June 30,

2022

2021

$

% to Total
Revenues

$

% to Total
Revenues

Industrial Automation

121,771

66.9

94,779

59.7

Rail Transportation Automation

34,215

18.8

47,533

29.9

Mechanical and Electrical Solution

26,129

14.3

16,452

10.4

Total

182,115

100.0

158,764

100.0

Gross margin was 33.7% for the three months ended June 30, 2022, as compared to 37.8% for the same period of the prior fiscal year. Gross margin of integrated solutions contracts, product sales, and service rendered was 27.1%, 75.4% and 57.1% for the three months ended June 30, 2022, as compared to 27.8%, 84.3% and 74.6% for the same period of the prior fiscal year, respectively. Non-GAAP gross margin was 33.9% for the three months ended June 30, 2022, as compared to 37.9% for the same period of the prior fiscal year. Non-GAAP gross margin of integrated solutions contracts was 27.3% for the three months ended June 30, 2022, as compared to 27.9% for the same period of the prior fiscal year. See the section entitled “Non-GAAP Measures” for more information about non-GAAP gross margin and non-GAAP gross margin of integrated solutions contracts.

Selling expenses were $10.9 million for the three months ended June 30, 2022, representing an increase of $1.3 million, or 13.1%, compared to $9.6 million for the same period of the prior fiscal year. The increase was in line with our sales growth. Selling expenses as a percentage of total revenues were 6.0% and 6.0% for the three months ended June 30, 2022 and 2021, respectively.

General and administrative expenses were $23.3 million for the three months ended June 30, 2022, representing a decrease of $6.9 million, or 22.9%, compared to $30.3 million for the same period of the prior fiscal year, which was primarily due to a $7.4 million decrease in third-party consulting fees and a $4.7 million decrease in share-based compensation expenses. Share-based compensation expenses were $1.3 million and $6.0 million for the three months ended June 30, 2022 and 2021, respectively. General and administrative expenses as a percentage of total revenues were 12.8% and 19.1% for the three months ended June 30, 2022 and 2021, respectively. The decrease of G&A in the fourth quarter is mainly due to the lower third-party consulting fees year-over-year.

Research and development expenses were $16.6 million for the three months ended June 30, 2022, representing an increase of $2.4 million, or 17.2%, compared to $14.2 million for the same period of the prior fiscal year. Research and development expenses as a percentage of total revenues were 9.1% and 8.9% for the three months ended June 30, 2022 and 2021, respectively.

The VAT refunds and government subsidies were $8.6 million for three months ended June 30, 2022, as compared to $9.7 million for the same period in the prior fiscal year, representing a $1.1 million, or 10.9%, decrease.

The income tax expenses and the effective tax rate were $3.9 million and 14.5% for the three months ended June 30, 2022, respectively, as compared to $6.3 million and 22.4% for the comparable period in the prior fiscal year, respectively. The effective tax rate fluctuates, as the Company’s subsidiaries contributed different pre-tax income at different tax rates.

Net income attributable to Hollysys was $23.0 million for three months ended June 30, 2022, representing an increase of 4.9% from $21.9 million reported in the comparable period in the prior fiscal year. Non-GAAP net income attributable to Hollysys was $24.7 million or $0.40 per diluted share. See the section entitled “Non-GAAP Measures” for more information about non-GAAP net income attributable to Hollysys.

Diluted earnings per share was $0.37 for the three months ended June 30, 2022, representing an increase of 2.8% from $0.36 for the comparable period in the prior fiscal year. Non-GAAP diluted earnings per share was $0.40 for the three months ended June 30, 2022, representing a decrease of 13.0% from $0.46 for the comparable period in the prior fiscal year. These were calculated based on 61.8 million and 61.0 million diluted weighted average ordinary shares outstanding for the three months ended June 30, 2022 and 2021, respectively. See the section entitled “Non-GAAP Measures” for more information about non-GAAP diluted earnings per share.

Contracts and Backlog Highlights

Hollysys achieved $1,057.9 million and $289.9 million in terms of the value of new contracts for the fiscal year and the three months ended June 30, 2022, respectively. The order backlog of contracts was $944.3 million as of June 30, 2022. The order backlog of contracts represents the amount of unrealized revenue to be earned from the contracts that Hollysys won. The detailed breakdown of new contracts and backlog by segment is shown in the table below:

(In USD thousands, except for %)

Value of New contracts
achieved for the fiscal
year

 ended June 30, 2022

Value of New contracts
achieved for the three
months

 ended June 30, 2022

Backlog as of Jun 30,
2022

$

% of  Total
Contract
Value

$

% of Total
Contract
Value

$

% of Total
Backlog

Industrial Automation

582,776

55.1

193,980

67.0

384,805

40.7

Rail Transportation

303,819

28.7

79,524

27.4

359,301

38.1

Mechanical and Electrical Solutions

171,333

16.2

16,359

5.6

200,166

21.2

Total

1,057,928

100.0

289,863

100.0

944,272

100.0

Cash Flow Highlights

For the fiscal year ended June 30, 2022, the total net cash inflow was $23.5 million. The net cash provided by operating activities was $54.5 million. The net cash provided by investing activities was $13.3 million, mainly consisting of $100.6 million maturity of short-term investments, $3.8 million proceeds from disposal of a subsidiary, $9.5 million proceeds received from disposal of equity investments, which was partially offset by $26.4 million purchases of property, plant and equipment, $64.4 million purchases of short-term investments, and $8.7 million cash prepaid for acquisition of a subsidiary. The net cash used in financing activities was $19.6 million, mainly consisting of $19.8 million payment of dividends.

For the three months ended June 30, 2022, the total net cash inflow was $6.9 million. The net cash provided by operating activities was $38.8 million. The net cash provided by investing activities was $23.6 million, mainly consisting of $37.8 million maturity of short-term investments, which was partially offset by $7.3 million purchases of property, plant and equipment, $6.9 million purchases of short-term investments. The net cash used in financing activities was $19.4 million, mainly consisting of $19.8 million payment of dividends.

Balance Sheet Highlights

The total amount of cash and cash equivalents was $679.8 million, $669.8 million, and $664.3 million as of June 30, 2022, March 31, 2022, and June 30, 2021, respectively.

For fiscal year ended June 30, 2022, DSO were 171 days, as compared to 180 days from the prior year, and inventory turnover was 58 days, as compared to 51 days from the prior year.

For the three months ended June 30, 2022, DSO was 174 days, as compared to 194 days for the comparable prior fiscal year and 215 days for the last fiscal quarter; inventory turnover days were 73 days, as compared to 47 days for the comparable prior fiscal year and 69 days for the last fiscal quarter. The significant increase in inventories was mainly due to the company’s increase in safety stock in response to supply chain fluctuations.

Financial Performance Guidance

Based on information available as of the date of this press release, Hollysys provides the following financial performance guidance for the full fiscal year 2023： 

 –   The revenue is expected to be between $810 million and $885 million, with a year-on-year increase of 15% to 25%.

About Hollysys Automation Technologies Ltd.

Hollysys is a leading automation control system solutions provider in China, with overseas operations in eight other countries and regions throughout Asia. Leveraging its proprietary technology and deep industry know-how, Hollysys empowers its customers with enhanced operational safety, reliability, efficiency, and intelligence which are critical to their businesses. Hollysys derives its revenues mainly from providing integrated solutions for industrial automation and rail transportation automation. In industrial automation, Hollysys delivers the full spectrum of automation hardware, software, and services spanning field devices, control systems, enterprise manufacturing management and cloud-based applications. In rail transportation automation, Hollysys provides advanced signaling control and SCADA (Supervisory Control and Data Acquisition) systems for high-speed rail and urban rail (including subways). Founded in 1993, with technical expertise and innovation, Hollysys has grown from a research team specializing in automation control in the power industry into a group providing integrated automation control system solutions for customers in diverse industry verticals. As of June 30, 2021, Hollysys had cumulatively carried out more than 35,000 projects for approximately 20,000 customers in various sectors including power, petrochemical, high-speed rail, and urban rail, in which Hollysys has established leading market positions.

SAFE HARBOR STATEMENTS

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements,” including statements regarding the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident,” or similar expressions, involve known and unknown risks and uncertainties. Such forward-looking statements, based upon the current beliefs and expectations of Hollysys’ management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For further information, please contact:

Hollysys Automation Technologies Ltd.
www.hollysys.com
+8610-58981386
investors@hollysys.com

HOLLYSYS AUTOMATION TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In USD thousands except for number of shares and per share data)

Three months ended

Fiscal year ended

June 30,

June 30,

2022

2021

2022

2021

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net revenues

Integrated solutions contracts revenue

$

149,292

$

126,237

$

573,567

$

460,180

Products sales

11,823

7,098

38,486

28,667

Revenue from services

21,000

25,429

95,409

104,619

Total net revenues

182,115

158,764

707,462

593,466

Costs of integrated solutions contracts

108,866

91,142

422,236

336,471

Cost of products sold

2,913

1,115

10,247

5,293

Costs of services rendered

9,001

6,448

35,622

33,423

Gross profit

61,335

60,059

239,357

218,279

Operating expenses

Selling

10,863

9,601

45,301

35,197

General and administrative

23,323

30,260

80,241

69,982

Research and development

16,629

14,194

69,580

55,954

VAT refunds and government subsidies

(8,600)

(9,653)

(30,309)

(30,099)

Total operating expenses

42,215

44,402

164,813

131,034

Income from operations

19,120

15,657

74,544

87,245

Other income, net

256

6,863

2,185

10,449

Foreign exchange gain (loss)

4,000

(942)

1,789

(6,219)

Gains on disposal of an investment in an equity investee

–

–

7,995

–

Losses on disposal of subsidiaries

–

–

(3)

–

Gains on disposal of an investment in securities

–

3,323

–

3,323

Impairment loss of investments in cost investees

(773)

–

(773)

–

Share of net income (loss) of equity investees

1,280

(1,331)

1,838

604

Dividend income from investments in securities

456

85

912

Interest income

3,363

4,278

12,698

14,131

Interest expenses

(141)

(125)

(731)

(553)

Income before income taxes

27,105

28,179

99,627

109,892

Income taxes expenses

3,928

6,317

16,634

20,554

Net income

23,177

21,862

82,993

89,338

Less: Net income (loss) attributable to non-controlling interests

155

(75)

(189)

(371)

Net income attributable to Hollysys Automation

\Technologies Ltd.

$

23,022

$

21,937

$

83,182

$

89,709

Other comprehensive (loss) income, net of tax of nil

Translation adjustments

(67,103)

18,280

(46,590)

96,577

Comprehensive (loss) income

(43,926)

40,142

36,403

185,915

Less: comprehensive income (loss) attributable to non-
    controlling interests

64

(12)

(1,310)

(125)

Comprehensive (loss) income attributable to Hollysys
Automation Technologies Ltd.

$

(43,990)

$

40,154

$

37,713

$

186,040

Net income per ordinary share:

Basic

0.38

0.36

1.36

1.48

Diluted

0.37

0.36

1.35

1.46

Shares used in net income per share computation:

Basic

61,195,317

60,698,727

61,007,506

60,566,709

Diluted

61,788,905

61,025,425

61,568,176

61,513,749

HOLLYSYS AUTOMATION TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

(In USD thousands except for number of shares and per share data)

June 30,

March 31,

2022

2022

(Unaudited)

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

679,754

$

669,799

Short-term investments

12,203

44,085

Restricted cash

38,486

36,298

Accounts receivable, net of allowance for credit losses of $77,603 and $76,061 as
    of June 30, 2022 and March 31, 2022, respectively

317,763

360,589

Costs and estimated earnings in excess of billings, net of allowance for credit losses
    of $12,178 and $11,077 as of June 30, 2022 and March 31, 2022, respectively

228,877

220,645

Accounts receivable retention

6,005

6,002

Other receivables, net of allowance for credit losses of $12,449 and $15,798 as of
    June 30, 2022 and March 31, 2022, respectively

26,100

28,734

Advances to suppliers

33,851

32,348

Amounts due from related parties

27,360

21,064

Inventories

91,243

89,175

Prepaid expenses

667

756

Income tax recoverable

258

164

Total current assets

1,462,567

1,509,659

Non-current assets

Restricted cash

787

6,026

Costs and estimated earnings in excess of billings

3,021

2,648

Accounts receivable retention

6,561

5,850

Prepaid expenses

1

2

Property, plant and equipment, net

98,249

97,700

Prepaid land leases

12,447

13,135

Intangible assets, net

10,742

11,767

Investments in equity investees

46,581

42,152

Investments securities

1,693

2,576

Goodwill

20,539

20,822

Deferred tax assets

4,540

16,186

Operating lease right-of-use assets

4,045

4,447

Total non-current assets

209,206

223,311

Total assets

1,671,773

1,732,970

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Short-term bank loans

66

–

Current portion of long-term loans

15,210

15,346

Accounts payable

173,953

176,849

Construction costs payable

92

98

Deferred revenue

206,222

211,593

Accrued payroll and related expenses

23,535

17,878

Income tax payable

4,509

9,068

Warranty liabilities

3,280

6,814

Other tax payables

11,587

4,443

Accrued liabilities

37,282

36,051

Amounts due to related parties

6,299

2,250

Other liability

3

3

Operating lease liabilities

2,518

2,224

Total current liabilities

484,556

482,617

Non-current liabilities

Accrued liabilities

3,349

2,047

Long-term loans

434

523

Accounts payable

1,556

1,338

Deferred tax liabilities

12,966

13,600

Warranty liabilities

1,722

2,618

Operating lease liabilities

1,282

1,912

Other liability

80

76

Total non-current liabilities

21,389

22,114

Total liabilities

505,945

504,731

Commitments and contingencies

–

–

Stockholders’ equity:

Ordinary shares, par value $0.001 per share, 100,000,000 shares authorized;
    61,962,449 shares and 61,962,249 shares issued and outstanding as of June 30,
    2022 and March 31, 2022, respectively

62

62

Additional paid-in capital

243,476

242,149

Statutory reserves

77,263

64,978

Retained earnings

857,141

866,215

Accumulated other comprehensive income

(12,655)

54,358

Total Hollysys Automation Technologies Ltd. stockholder’s equity

1,165,287

1,227,762

Non-controlling interests

541

477

Total equity

1,165,828

1,228,239

Total liabilities and equity

$

1,671,773

$

1,732,970

HOLLYSYS AUTOMATION TECHNOLOGIES LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In USD thousands).

 

Three months ended

Fiscal year ended

June 30, 2022

June 30, 2022

(Unaudited)

(Unaudited)

Cash flows from operating activities:

Net income

$

23,177

$

82,993

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of property, plant and equipment

2,568

10,263

Amortization of prepaid land leases

70

382

Amortization of intangible assets

311

1,356

Allowance for credit losses

7,411

16,122

Gains on disposal of property, plant and equipment

(52)

(75)

Share of net income of equity investees

(1,280)

(1,838)

Share-based compensation expenses

1,327

9,709

Deferred income tax expenses

10,981

4,179

Losses on disposal of subsidiaries

3

3

Impairment loss on investment in a cost investee

773

773

Gains on disposal of an investment in an equity investee

25

(7,995)

Changes in operating assets and liabilities:

Accounts receivable and retention

12,682

(11,807)

Costs and estimated earnings in excess of billings

(20,444)

(39,839)

Inventories 

(6,636)

(40,007)

Advances to suppliers

(3,184)

(14,274)

Other receivables 

1,251

(3,425)

Prepaid expenses

80

257

Due from related parties

(8,528)

4,903

Accounts payable

5,570

28,470

Deferred revenue

5,541

19,221

Accruals and other payables

(146)

(16,417)

Due to related parties

4,049

4,638

Income tax payable

(4,373)

1,423

Other tax payables

7,650

5,511

Net cash provided by operating activities

38,826

54,526

Cash flows from investing activities:

Purchases of short-term investments

(6,937)

(64,383)

Purchases of property, plant and equipment

(7,291)

(26,369)

Proceeds from disposal of a subsidiary

 

–

3,797

Proceeds from disposal of property, plant and equipment

63

140

Maturity of short-term investments

37,813

100,562

Investment of an equity investee

 

–

(1,261)

Proceeds received from disposal of equity investments

–

9,497

Acquisition of a subsidiary, net of cash acquired

–

(8,726)

Net cash provided by investing activities

23,648

13,257

Cash flows from financing activities:

Proceeds from short-term bank loans

68

128

Repayments of short-term bank loans

1

(59)

Proceeds from long-term bank loans

537

876

Repayments of long-term bank loans

(151)

(673)

Payment of dividends

(19,828)

(19,828)

Net cash used in financing activities

(19,373)

(19,556)

Effect of foreign exchange rate changes

(36,197)

(24,747)

Net increase in cash, cash equivalents and restricted cash

$

6,904

23,480

Cash, cash equivalents and restricted cash, beginning of period

$

712,123

695,547

Cash, cash equivalents and restricted cash, end of period

719,027

719,027

Non-GAAP Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, in evaluating our results, we use the following non-GAAP financial measures: non-GAAP gross profit and non-GAAP gross margin, non-GAAP gross profit and non-GAAP gross margin of integrated solutions contracts, non-GAAP net income attributable to Hollysys Automation Technologies Ltd., as well as non-GAAP basic and diluted earnings per share.

These non-GAAP financial measures serve as additional indicators of our operating performance and not as any replacement for other measures in accordance with U.S. GAAP. We believe these non-GAAP measures help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of the share-based compensation expenses, which are calculated based on the number of shares or options granted and the fair value as of the grant date, and amortization of acquired intangible assets. They will not result in any cash inflows or outflows. We believe that using non-GAAP measures help our shareholders to have a better understanding of our operating results and growth prospects.

Non-GAAP gross profit and non-GAAP gross margin, non-GAAP gross profit and non-GAAP gross margin of integrated solutions contracts, non-GAAP net income attributable to Hollysys Automation Technologies Ltd., as well as non-GAAP basic and diluted earnings per share should not be considered in isolation or construed as an alternative to gross profit and gross margin, gross profit and gross margin of integrated solutions contracts, net income attributable to Hollysys Automation Technologies Ltd., basic and diluted earnings per share, or any other measure of performance, or as an indicator of the Company’s operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Non-GAAP gross profit and gross margin, non-GAAP gross profit and non-GAAP gross margin of integrated solutions contracts, non-GAAP net income attributable to Hollysys Automation Technologies Ltd., as well as non-GAAP basic and diluted earnings per share presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.

We define non-GAAP gross profit and non-GAAP gross margin as gross profit and gross margin, respectively, adjusted to exclude non-cash amortization of acquired intangibles. The following table provides a reconciliation of our gross profit and gross margin to non-GAAP gross profit and non-GAAP gross margin for the periods indicated.

(In USD thousands, except for %)

Three months ended

Fiscal year ended

June 30,

June 30,

2022

2021

2022

2021

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Gross profit

$

61,335

$

60,059

$

239,357

$

218,279

Gross margin(1)

33.7 %

37.8 %

33.8 %

36.8 %

Add:

  Amortization of acquired intangible assets

353

90

1,356

316

Non-GAAP gross profit

$

61,688

$

60,149

$

240,713

$

218,595

Non-GAAP gross margin(2)

33.9 %

37.9 %

34.0 %

36.8 %

__________

(1)           Gross margin represents gross profit for the period as a percentage of revenues for such period.

(2)           Non-GAAP gross margin represents non-GAAP gross profit for the period as a percentage of revenues for such period.

We define non-GAAP gross profit and non-GAAP gross margin of integrated solutions contracts as gross profit and gross margin of integrated solutions contracts, respectively, adjusted to exclude non-cash amortization of acquired intangibles associated with integrated solutions contracts. The following table provides a reconciliation of the gross profit of integrated solutions contracts to non-GAAP gross profit and non-GAAP gross margin of integrated solutions contracts for the periods indicated.

(In USD thousands, except for %)

Three months ended June 30,

Fiscal year ended June 30,

2022

2021

2022

2021

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Gross profit of integrated
    solutions contracts

$

40,426

$

35,095

$

151,331

$

123,709

Gross margin of integrated

    solutions contracts(1)

27.1 %

27.8 %

26.4 %

26.9 %

Add:

  Amortization of acquired intangible
    assets

353

90

1,356

316

Non-GAAP gross profit of
    integrated solutions contracts

$

40,779

$

35,185

$

152,687

$

124,025

Non-GAAP gross margin of
    integrated solutions contracts(2)

27.3 %

27.9 %

26.6 %

27.0 %

__________

(1)           Gross margin of integrated solutions contracts represents gross profit of integrated solutions contracts for the period as a percentage of integrated solutions contracts revenue for such period.

(2)           Non-GAAP gross margin of integrated solutions contracts represents non-GAAP gross profit of integrated solutions contracts for the period as a percentage of integrated solutions contracts revenue for such period.

We define non-GAAP net income attributable to Hollysys as net income attributable to Hollysys adjusted to exclude the share-based compensation expenses and non-cash amortization of acquired intangible assets. The following table provides a reconciliation of net income attributable to Hollysys to non-GAAP net income attributable to Hollysys for the periods indicated.

(In USD thousands)

Three months ended

Fiscal year ended

June 30,

June 30,

2022

2021

2022

2021

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net income attributable to Hollysys Automation
    Technologies Ltd.

$

23,022

$

21,937

$

83,182

$

89,709

Add:

Share-based compensation expenses

1,327

6,036

9,709

9,724

Amortization of acquired intangible assets

353

90

1,356

316

Non-GAAP net income attributable to Hollysys
    Automation Technologies Ltd.

$

24,702

$

28,063

$

94,247

$

99,749

Non-GAAP basic (or diluted) earnings per share represents non-GAAP net income attributable to Hollysys divided by the weighted average number of ordinary shares outstanding during the periods (or on a diluted basis). The following table provides a reconciliation of our basic (or diluted) earnings per share to non-GAAP basic (or diluted) earnings per share for the periods indicated.

(In USD thousands, except for number of shares and per share data)

Three months ended

Fiscal year ended

June 30,

June 30,

2022

2021

2022

2021

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Net income attributable to Hollysys 
    Automation Technologies Ltd.

$

23,022

$

21,937

$

83,182

$

89,709

Add:

Share-based compensation expenses

1,327

6,036

9,709

9,724

Amortization of acquired intangible assets

353

90

1,356

316

Non-GAAP net income attributable to
    Hollysys Automation Technologies
    Ltd.

$

24,702

$

28,063

$

94,247

$

99,749

Weighted average number of basic ordinary
    shares

61,195,317

60,698,727

61,007,506

60,566,709

Weighted average number of diluted ordinary
    shares

61,788,905

61,025,425

61,568,176

61,513,749

Basic earnings per share(1)

$

0.38

$

0.36

$

1.36

$

1.48

Add:
    Non-GAAP adjustments to net income per

    share(2)

0.02

0.10

0.18

0.17

    Non-GAAP basic earnings per share(3)

$

0.40

$

0.46

$

1.54

$

1.65

Diluted earnings per share(1)

$

0.37

$

0.36

$

1.35

$

1.46

Add:
    Non-GAAP adjustments to net income per
    share(2)

0.03

0.10

0.18

0.16

Non-GAAP diluted earnings per share(3)

$

0.40

$

0.46

$

1.53

$

1.62

________

(1)           Basic (or diluted) earnings per share is derived from net income attributable to ordinary shareholders for computing basic (or diluted) earnings per share divided by weighted average number of shares (or on a diluted basis).

(2)           Non-GAAP adjustments to net income per share are derived from non-GAAP adjustments to net income divided by weighted average number of shares (or on a diluted basis).

(3)           Non-GAAP basic (or diluted) earnings per share is derived from non-GAAP net income attributable to ordinary shareholders for computing non-GAAP basic (or diluted) earnings per share divided by weighted average number of shares (or on a diluted basis).

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PR Newswire

S2C Shines at DAC 2022 with its New Prodigy Player Pro-7 Prototyping Software, Multi-FPGA Prototype Hardware Platforms, and Complete Prototyping Solutions

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Stand-Out Veteran Provider of FPGA Prototyping Solutions

SAN JOSE, Calif., July 23, 2022 /PRNewswire/ — The 59th Design Automation Conference returned to San Francisco’s Moscone Center this year to notch almost six decades of week-long immersion in EDA technology and market trends, combining keynote presentations by industry luminaries with the “DAC Engineering Track” technical presentations and the EDA tool-provider exhibits for in-person exchanges of EDA user-needs and the latest EDA solutions.  Attendance by exhibitors, and EDA tool end-users alike, was noticeably improved from last year’s conference but still below pre-COVID levels.  The Moscone Center neighborhood provided a less than inviting convention venue as San Francisco recovers from COVID’s decimation of the convention-generated commerce around the Center marred by heavily littered streets, a very noticeable presence of “street people”, and the closure of many name-brand businesses that are normally sustained by the “collateral business” generated by convention attendees.

Despite the lower DAC attendance, S2C saw a marked improvement in the quantity and quality of visitors to the S2C booth.  S2C highlighted its latest hardware and software and provided interactive demonstrations of its Prodigy MDM Pro multi-FPGA debug tools and its Prodigy ProtoBridge high-throughput channel for the transfer of large amounts of transaction-level data between the FPGA prototype and a host computer – both demonstrations running on S2C’s Quad Logic System prototyping hardware featuring Intel’s massive Stratix GX 10M FPGAs.

S2C took the opportunity at DAC to roll out its newest version of its prototyping software Prodigy Player Pro-7.  The new software suite includes Player Pro-RunTime, for prototype platform control and hardware test; Player Pro-CompileTime, with enhanced automation of multi-FPGA partitioning and pre/post-partition timing analysis; and Player Pro-DebugTime, for multi-FPGA debug probing and trace viewing with S2C’s class-leading MDM Pro debug tools.

With an emphasis on large-scale SoC design prototyping, Player Pro-7 offers enhanced support for multi-FPGA implementations, including:

  • RTL Partitioning and Module Replication to support Parallel Design Compilation and reduce Time-to-Implementation
  • Pre/Post-Partition System-Level Timing Analysis for Increased Prototyping Productivity
  • SerDes TDM Mode for Optimal Multi-FPGA Partition Interconnect and Higher Prototype Performance

S2C displayed a number of its latest prototyping products in its DAC booth this year, including the Prodigy Logic System 10M based on the industry’s largest FPGA, Intel’s Stratix 10 GX 10M. Also on display were S2C’s Xilinx-based prototyping hardware, the Prodigy S7-19P Logic System, and the S7-9P Logic System, both getting their fair share of DAC attendee attention.

The highlight of the S2C booth was the new Prodigy Logic Matrix LX2.  Based on Xilinx’s largest Virtex Ultrascale+ FPGA, the LX2 boasts eight VU19P；for expansion beyond eight FPGAs, up to eight LX2s can be housed in a single standard server rack, extending prototyping gate-capacity up to sixty-four VU19P FPGAs. For expansion beyond eight FPGAs, the LX2 architecture is designed for prototyping with up to eight LX2’s in a single standard server rack, extending prototyping gate-capacity up to sixty-four VU19P FPGAs.  At this level of FPGA prototyping density, hardware quality and reliability become first-order considerations, and S2C’s 18+ year proven track record of delivering high-quality prototyping hardware sets a high bar for other prototyping solutions.

To enable users to configure prototyping platforms quickly and reliably, S2C displayed a sampling of its Prototype Ready IP in the booth.  Prototype Ready IP are off-the-shelf daughter cards designed by S2C to plug-and-play with S2C prototyping hardware platforms.  The daughter cards are designed to attach reliably to the FPGA prototype hardware and compose a rich collection of prototyping functions, including High-Speed GT Peripherals (Ethernet, PCIe, MIPI, SATA, high-performance cables, etc.), General Peripherals (GPIO, USB, mini-SAS, JTAG, RS232, etc.), Memory Modules (EMMC, DDR, SRAM, etc.), ARM Processor Interface Modules, Embedded and Multimedia modules (DVI, HDMI, MIPI, etc.), and Expansion and Accessories modules (FMC-HPC Converters, Level Shifters, I/O Test Modules, DDR Memory Modules for user-supplied external memory, Interconnect Cables, Clock Modules, etc.).

The Prodigy MDM Pro demonstrations at the booth showcased the implementation of S2C’s multi-FPGA debug tools for prototyping with a combination of external hardware, soft IP implemented in the FPGA, high-speed FPGA I/O, and debug configuration software (Player Pro-DebugTime).  MDM Pro was designed specifically to support multi-FPGA prototype implementations – with support for high probe-counts, deep-trace debug data storage, optimization of debugging reconfiguration compiles, and with the ability to choose debug configuration tradeoffs to optimize prototype performance.  The Player Pro-DebugTime software supports user-friendly debug configuration, complex trace-data capture triggering, and single-window viewing on the user console of simultaneous streams of trace-data from multiple FPGAs.  MDM Pro hardware supports high-performance deep-trace debug data storage without consuming internal FPGA storage resources.

S2C also demonstrated its Prodigy ProtoBridge in the DAC booth to showcase its off-the-shelf solution for a high-throughput channel (4GB/second) between the FPGA prototype and a host computer for the application of large amounts of transaction-level test data to the FPGA prototype – such as processor bus transactions, video data streams, communications channel transactions, etc.  ProtoBridge uses a PCI-to-AXI interface implemented in the FPGA and connected to the user’s RTL as an AXI-4 bus.  ProtoBridge includes a set of C-API function calls to perform AXI bus transactions in the FPGA prototype, a PCIe3 driver for Linux or Windows operating systems to control Logic System operations, C-API reference operations with sample access to FPGA internal memory, and an integration guide on how to connect the user’s RTL code to the ProtoBridge AXI-4 bus module.

Overall, DAC 2022 was a successful conference for S2C, firmly establishing S2C as the leading independent FPGA prototyping supplier, with the strongest track record of delivering complete prototyping solutions worldwide.

The FPGA prototyping hardware and software displayed at DAC are available now. For more information, please contact your local S2C sales representative, or visit www.s2cinc.com

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PR Newswire

LeadSquared secures $153mn from WestBridge Capital; Turns Unicorn

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ATLANTA, June 24, 2022 /PRNewswire/ — Sales automation platform, LeadSquared recently announced that it has secured an investment of USD $153mn in the Series C funding round from WestBridge Capital. 

LeadSquared founders Sudhakar Gorti, Nilesh Patel & Prashant Singh
LeadSquared founders Sudhakar Gorti, Nilesh Patel & Prashant Singh

Founded by Nilesh Patel, Prashant Singh, and Sudhakar Gorti in 2011, LeadSquared’s vision is to make high-velocity sales execution software a growth engine for companies around the globe. 

LeadSquared has built a global, best-in-class sales platform that takes away the guesswork from sales execution and makes efficiency the focus of every customer interaction, no matter how complex the customer journey. It now serves more than 2,000 customers globally. 

“We are grateful for the support of our investors as we strive to build LeadSquared into a globally significant business. With this financing, we will double down on growth investments in India and North America, start building in APAC and EMEA, add new offerings to our product portfolio, and fund acquisitions. To support our growth, we plan to double our headcount in the next 18 months,” shared Nilesh Patel, Founder & CEO, LeadSquared.

Remarking on the investment, Sumir Chadha, Co-founder and Managing Director at WestBridge Capital, said, “LeadSquared has shown a remarkable ability to scale and grow efficiently. Its core SaaS metrics are unique and best-in-class in the industry. Its focus on building an easy-to-use platform that transforms sales processes through automation delivering unparalleled efficiency, has significant potential for growth in the global market. Future of LeadSquared is very exciting to us and we look forward to a long partnership with the company.”

Gaja Capital’s Managing Partner, Gopal Jain opined, “LeadSquared is fast emerging as a category leader in high-velocity sales execution software. Nilesh and the team have built a strong platform with robust unit economics. With this round, the company has the balance sheet strength to further invest for growth in India as well as international markets, especially the US. We look forward to LeadSquared being the engine of growth for ambitious companies in India and around the world.”

LeadSquared is the growth partner for organizations in higher education, edtech, professional education, healthcare, financial services. LeadSquared is headquartered in Bengaluru, India alongside its presence in the United States, APAC and EMEA.

The company’s existing investors include Gaja Capital, IFC, and Stakeboat Capital. 

Barclays acted as the exclusive placement agent for the Series C funding.

Media Contact: Arushi Dhar; pr@leadsquared.com

Email ID Sales: Shubhankit Mishra sales@leadsquared.com

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Rockwell Automation Announces the First Platinum System Integrator Partner, SAGE Automation, to its PartnerNetwork(TM)

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Top-level Rockwell Automation Platinum Partnership helps industry address current issues and prevents future ones

MELBOURNE, Australia, May 19, 2022 /PRNewswire/ — Rockwell Automation, the world’s largest company dedicated to industrial automation and digital transformation, announced SAGE Automation as the first organisation globally to be designated as a Platinum System Integrator Partner as part of the PartnerNetwork Program. Based in Australia and India, SAGE Automation is an independent industrial automation and control systems integrator, delivering industrial automation design, delivery, and support globally. 

Rockwell Automation Announces the First Platinum System Integrator Partner, SAGE Automation, to its PartnerNetwork(TM)
Rockwell Automation Announces the First Platinum System Integrator Partner, SAGE Automation, to its PartnerNetwork(TM)

The program brings robust commercial and technical enablement to maximise system integrators’ skills, recognise and reward performances, and provide the ability to find the right system integrator for a project to meet our customers’ needs and achieve mutual success. As a Platinum System Integrator Partner, SAGE Automation will receive benefits including gaining enhanced recognition with customers and in the industry, as well as receiving incentives and product and technical support.

“The partnership between Rockwell Automation and SAGE Automation aims to deliver the full benefits of world-class automation to Australia, helping local industries obtain the widest possible breadth of expertise to make the most productive automation choices and avoid the high costs of uninformed decisions,” said Anthony Wong, managing director, South Pacific, Rockwell Automation.

“Automation is no longer an option for many companies who wish to remain competitive – it is an imperative – and Rockwell Automation’s collaboration with SAGE will simplify programming and lifecycle management, accelerating time to value for our customers,” he added.

Machine builders, system integrators, and others will gain development and deployment efficiencies through the use of digital engineering tools. The combined Rockwell and SAGE Automation solutions will also offer benefits beyond enhanced integration. For example, end users can use analytics and digital twin tools to gain deeper insights into machine performance and potential production optimisation. They can also use safety and security solutions to reduce business risks.

“SAGE Automation is proud to be the first recognised Platinum Partner globally in Rockwell’s System Integrator Partner Program. SAGE’s industrial digitalisation services – through a data-driven approach combined with automation, scalable support and enabling internal capability – have accelerated thousands of client journeys around the world,” said Adrian Fahey, group managing director, SAGE Group of companies. “Our partnership with Rockwell brings the technical experience and best thinking to these critical industries and projects, from supporting Australia’s most iconic manufacturers, to the energy systems that power our homes, the safety solutions that protect workers in high-risk environments, and the systems that provide Australians with clean drinking water.”

Rockwell Automation Australia’s key focus industries in Australia and New Zealand include manufacturing, particularly food and beverage, resources, including mining, oil and gas, energy, transport, including automotive and metal working, water and smart wastewater and sustainability solutions.

“Achieving this level of partnership with Rockwell cements our position as a world leader, supporting our clients through times of change, and always delivering the certainty they rely on,” concluded Fahey.

For more information on Rockwell Automation’s System Integrator Program, or to request more information from your local sales office, please click here.

About SAGE Automation

Part of the SAGE Group of Companies, SAGE Automation is a leading Australian system integration organisation, helping users optimise performance with quality implementation and related services. SAGE delivers agile, scalable and secure solutions that not only address current problems, but also pre-empts and deters future ones. SAGE provides training and certification opportunities for system integrator partners and encourages customers to require that their preferred partners gain the highest levels of expertise and certification, thus achieving optimum recognition for their system quality in local and global markets.

About the Rockwell Automation PartnerNetwork

Rockwell Automation believes we’re better together—and we do our part by delivering an expansive, global partner ecosystem of market-leading technology, superior support and services, and an integrated and streamlined approach to business. Succeed on an international scale by utilising our network’s breadth of innovative technologies and services that no single vendor can provide alone. To learn more about how the PartnerNetwork is helping to deliver the value of The Connected Enterprise, visit PartnerNetwork Program | Rockwell Automation United States.

About Rockwell Automation

Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 25,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing The Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com.

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Nintex Accelerates Process Automation Across Commercial Enterprises and Government Agencies

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With pre-built process templates designed for major industries and departmental use cases, the online Nintex Gallery is a valuable resource for digital transformation acceleration

AUCKLAND, New Zealand, April 28, 2022 /PRNewswire/ — Nintex, the global standard for process intelligence and automation, today announced the addition of more than 50 new process templates to its online Nintex Gallery, an interactive portal featuring downloadable process maps, automation templates, workflows and connectors – all designed to speed the digitisation of work for organisations worldwide.

“Nintex process templates jumpstart sophisticated-to-critical automation projects by putting valuable pre-built components and solutions directly in the hands of people,” said Nintex Chief Product Officer Neal Gottsacker. “With our process intelligence and automation tools and templates, organisations can rapidly remove digital transformation barriers and automate faster.”

New capabilities available through the Nintex Gallery include direct integration with Nintex Workflow Cloud, the company’s next-generation cloud automation platform, which allows customers to directly import workflow templates into their environment so they can deploy digital solutions even faster. There are also a growing number of templates available for Nintex AssureSign®, Nintex Kryon® RPA, Nintex Drawloop DocGen®, and Nintex Forms.

Currently the Nintex Gallery features hundreds of useful templates that have accumulated since the initial launch in January 2020. Templates may be filtered and organised by capability, industry and department, and the latest release includes an advanced search function, refreshed user interface, and new template sets to accelerate the development of end-to-end automated business solutions.

Popular templates to support key use cases include:

  • Employee onboarding with Nintex Workflow Cloud
  • Invoice processing with Nintex Promapp®
  • Integrate Nintex RPA Central with Nintex K2 Five with connectors
  • Check processing automation with Nintex RPA

Template contributions are open to Nintex premier partners with a high-level of expertise and Nintex expert certifications, like top template contributors Protiviti Inc, Quadrion, and Optimum.

“Our highly skilled team of Nintex-certified experts work with clients to develop their business process automation strategy and assist with design, configuration and customisation of intelligent automation solutions,” said Protiviti Managing Director, Global Ecosystem, Claudia Kuzma. “The Nintex Gallery allows us to quickly and easily get our solutions to customers so they can experience the benefits immediately.”

To experience The Power of Process®, request a free Nintex trial at https://www.nintex.com/trial/.

Media Contact

About Nintex

Nintex is the global standard for process intelligence and automation. Today more than 10,000 public and private sector organisations across 90 countries turn to the Nintex Platform to accelerate progress on their digital transformation journeys by quickly and easily managing, automating and optimising business processes. Learn more by visiting www.nintex.com and experience how Nintex and its global partner network are shaping the future of Intelligent Process Automation (IPA).

Product or service names mentioned herein may be the trademarks of their respective owners.

Logo – https://techent.tv/wp-content/uploads/2022/04/nintex-accelerates-process-automation-across-commercial-enterprises-and-government-agencies.jpg

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ECA Group and iXblue enter exclusive negotiations period to create new European high-tech champion.

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SAINT-GERMAIN-EN-LAYE, France and TOULON, France, March 15, 2022 — ECA Group and iXblue have entered an exclusive negotiations period to bring the two French companies together. Carried out by Group Gorgé, this operation will lead to the rise of a European high-tech industrial champion in the fields of maritime, inertial navigation, space and photonics.

iXblue DriX Uncrewed Surface Vehicle
iXblue DriX Uncrewed Surface Vehicle

Long-standing partners, ECA Group and iXblue benefit from strong technological and commercial synergies. Bringing those two companies together will create a world-class player in the civil and defense sectors. With a unique offer ranging from components to complex systems, the group will provide high performance solutions for critical missions in harsh environments.

"Our two companies share the same culture of innovation, agility and entrepreneurship that are at the heart of each of our DNAs and for which we are both recognized and valued," explains Fabien Napolitano, President & CEO of iXblue. "The new synergies created will not only ensure we keep this DNA but will also strengthen our capacity for innovation by leveraging our complementary expertise. This will allow us to continue to push the technological frontiers and support our customers in their most demanding challenges."

"The joining of our two companies, which will employ over 1,500 people, offers great growth opportunities," rejoices Dominique Giannoni, CEO of ECA Group. "Once combined, our various technological expertise will greatly help strengthen our leadership positions in our markets, while our complementary geographical footprint will enable us to better serve our customers by being closer to them."

About ECA Group

ECA Group is a subsidiary of Groupe Gorgé since 1992, owned at 100%. The company is one of the world leaders in the field of autonomous robotics and integrated systems, particularly in the naval sector. The company provides its customers with the most efficient and technologically advanced solutions in the field of naval, land and air drones. ECA Group also offers innovative technological solutions for the Aeronautics and Space sectors.

About iXblue

iXblue is a global high-tech company recognized worldwide for delivering advanced navigation, photonics and maritime autonomy solutions. From components to systems and comprehensive solutions, iXblue critical technologies are at work in both the civil and defense markets. They meet customers demanding requirements for successful missions in the most challenging environments, from the deep sea to outer space.

iXblue
Marion Seyve
Global Marketing & Communication Manager
marion.seyve@ixblue.com  

ECA Group
Heli Reinikainen
Marketing Manager
reinikainen.h@ecagroup.com

ECA Group A18D Autonomous Underwater Vehicle
ECA Group A18D Autonomous Underwater Vehicle

 

 

 

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Stonebranch Universal Connector for SAP Achieves SAP-Certified Integration with SAP S/4HANA®

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Certification validates the interoperability between the Stonebranch Universal Automation Center and the SAP S/4HANA business suite.

ALPHARETTA, Ga., Jan. 14, 2022 — Stonebranch, a leading provider of service orchestration and automation solutions, announced today that its Universal Connector for SAP has achieved SAP certification as a direct integration with SAP S/4HANA.

Stonebranch Logo

The SAP Integration and Certification Center (SAP ICC) has certified that the Universal Connector for SAP integrates with SAP S/4HANA using standard integration technologies. SAP S/4HANA is a next-generation business suite, built for the SAP HANA platform, with on-premises and cloud deployment options. It’s designed to act as the digital core, helping customers drive digital transformation across their entire organizations, taking advantage of the award-winning, role-based user experience of SAP Fiori®. 

"By adding the S/4HANA certification to our growing list of SAP certifications, the Stonebranch Universal Automation Center (UAC) operates as a central orchestrator of all automated jobs both inside and outside of the SAP ecosystem," said Giuseppe Damiani, CEO at Stonebranch. "Our long list of customers who use SAP S/4HANA, SAP ECC, and SAP Fiori applications are thrilled that they can centrally manage all automated processes across their entire SAP footprint. That said, they quickly realize that they can create orchestrated workflows that automate SAP applications alongside any other non-SAP application as well."  

Available on the SAP Store (previously the SAP App Center), the Universal Connector for SAP is a feature-rich direct integration between the Universal Automation Center (UAC) and a variety of SAP solutions. It allows SAP end-users to manage SAP business processes and background jobs, which enables centralized control and visibility, improved error handling, and the ability to add SAP solutions to more complex workflows that include non-SAP solutions. Stonebranch offers a wide selection of pre-built integrations, like this one, to help IT professionals break down automation silos and centrally orchestrate the automated processes within any platform or application.

About Stonebranch

Stonebranch builds IT orchestration and automation solutions that transform business IT environments from simple IT task automation into sophisticated, real-time business service automation. No matter the degree of automation, the Stonebranch platform is simple, modern and secure. Using the Stonebranch Universal Automation Platform, enterprises can seamlessly orchestrate workloads and data across technology ecosystems and silos. Headquartered in Atlanta, Georgia, with points of contact and support throughout the Americas, Europe, and Asia, Stonebranch serves some of the world’s largest financial, manufacturing, healthcare, travel, transportation, energy, and technology institutions.

SAP Disclaimer

SAP, SAP S/4HANA, SAP HANA, SAP Fiori and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. See http://www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices. All other product and service names mentioned are the trademarks of their respective companies.

Media contact:
Scott Davis
scott.davis@stonebranch.com 

PR Newswire

Waymo and Zeekr to collaborate on all-electric, fully autonomous ride-hailing vehicle

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HANGZHOU, China and SAN FRANCISCO, Calif., Dec. 29, 2021 — Geely Holding Group’s (Geely) premium electric brand, Zeekr, will collaborate with Waymo on the development of a new pure electric vehicle for deployment in the Waymo One autonomous ride-hailing fleet in the United States. 

Waymo and Zeekr collaborate on autonomous drive vehicle
Waymo and Zeekr collaborate on autonomous drive vehicle

The Program Explained / The plan. 

The new purpose-built mobility vehicle is being designed and developed at Zeekr’s R&D facility, CEVT (China Europe Vehicle Technology Centre) in Gothenburg, Sweden which has a proven track record in developing class leading vehicles for the wider Geely Holding Group. Under this collaboration, Zeekr will be designing and developing the future vehicle on a new proprietary and open-source mobility architecture. Waymo will take delivery of the vehicles in the United States and will then integrate its fully autonomous Waymo Driver into the vehicle platform.

The new vehicle will be designed to be rider-centric from the outset, setting a new benchmark for autonomous vehicles. The new Zeekr vehicle has been designed for autonomous use-cases and will come with a fully configurable cabin, both with and without driver controls, that can be tailored towards rider requirements for the Waymo One unmanned ride-hailing fleet in the US.

Zeekr was founded in early 2021 as a global technology-mobility brand with design and engineering resources in Sweden. The first model from Zeekr, the 001, was introduced in April 2021 with deliveries starting in October of the same year. 

Quotes / What they say. 

Andy An, CEO Zeekr Technology: "Zeekr was born on the ideals of equality, diversity, and sustainability. By becoming a strategic partner and vehicle supplier to the Waymo One fleet, we will be able to share our experience, ideals and provide our expertise in collaborating on a fully electric vehicle that fits Waymo’s requirements for this rapidly expanding segment in the global market for sustainable travel." 

PR Newswire

QuEST Global partners with NXP to deliver integrated and secure platforms for Vehicle Networking

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Helps automotive OEMs and Tier-1s to develop next-gen S32G vehicle processing designs and address software complexity and security challenges

BENGALURU , India, Dec. 21, 2021 — QuEST Global, a global product engineering services company, announced today its partnership with NXP® Semiconductors to deliver software support for NXP’s S32G Vehicle Network Processors. QuEST will provide valued services to help OEM’s and Tier-1’s unlock the true potential of the NXP S32G processors to deliver a highly-secure vehicle network that combines ASIL D safety, hardware security, high-performance real-time application processing and network acceleration for service-oriented gateways, domain controllers, zonal processors and safety processors. Through this collaboration with NXP, QuEST reaffirms its commitment in helping its partners build safer, greener and smarter future cars.  

The evolution in automotive industry has shifted the demand towards electric, autonomous, connected and shared mobility. Vehicles are becoming more data-driven and software-defined, and safe and secure connectivity is becoming a key concern for the consumer. The S32G processor significantly helps in addressing the vehicle networking requirements by securely managing data transmission around the vehicle and protecting safety critical applications. With its trained and dedicated resources specialized on this platform, QuEST will support NXP S32G customers to help reduce development complexity, accelerate time-to-market and expand business opportunities for future data-driven and software-defined Automotive OEMs.

"The automotive industry is going through a massive transformation with deployment of new vehicle architecture to support the future of mobility", said Krish Kupathil, Head of Innovation, QuEST Global. He further added, "The S32G processors address the need for higher performance compute and networking bandwidth with enhanced security and functional safety. We will leverage our S32G expertise to support our common automotive customers, to build the platform required to deploy new connected services and upgradable features for next-gen vehicles."

"As the automotive industry is evolving, vehicle manufacturers will continuously need to deliver an enhanced, secure and hassle free data management for their vehicles. QuEST’s support and software solutions can help our mutual OEM and Tier-1 customers realize the full potential of the S32G processors," said Carlos Prada, Director of Automotive Processing Partnerships at NXP.

NXP’s S32G automotive network processors enable modern service-oriented gateways for rapid Over-the-Air (OTA) deployment of new capabilities and advanced edge-to-cloud analytics. They deliver higher processing and networking performance with ASIL D functional safety to support autonomous driving applications[1]. QuEST will be offering the following services for the S32G platform:

  • Hardware System Designing and Prototyping
  • Automotive System Software Engineering including Design, Development and Maintenance.  
  • Integration of Connectivity Module and Features
  • Support NXP’s customers in achieving Functional Safety, System Validation and Automation
  • Product Realization

As the automotive industry witnesses exponential growth, it also opens up challenges to manage data security for vehicle manufacturers. The new age vehicles will require a more secure and seamless information flow both within and outside the vehicle. QuEST and NXP’s association will help in addressing these hard challenges and help Tier-1 and OEM’s transform from carmakers into vehicle data-driven service providers.

About QuEST Global:

For nearly 25 years, QuEST Global has been a trusted global product engineering services partner to many of the world’s most recognized companies in the Aerospace & Defense, Automotive, Energy, Hi-Tech, Healthcare and Medical Devices, Rail and Semiconductor industries. With a presence in 13 countries, 54 global delivery centers and 11,500+ personnel, QuEST Global is at the forefront of the convergence of the mechanical, electronics, software and digital engineering innovations to engineer solutions for a safer, cleaner and sustainable world. QuEST Global’s deep domain knowledge and digital expertise help its clients accelerate product development and innovation cycles, create alternate revenue streams, enhance consumer experience and make manufacturing processes and operations more efficient.

[1] NXP Unlocks the Full Potential of Vehicle Data with the S32G Automotive Network Processors | NXP Semiconductors

PR Newswire

Newgen Secures Patent for Integrated Capture and Analysis of Documents

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Patent to further strengthen Newgen’s Contextual Content Services Platform capabilities

SINGAPORE, Dec. 11, 2021 — Newgen Software, a global provider of low code digital transformation platform, has announced that the Indian patent office has granted a patent (No. 383940) for its invention entitled "Integrated Capture and Analysis of Documents." This is for a term of 20 years commencing from January 14, 2011, in accordance with the provisions of the Patents Act, 1970.

This patent protects the invention to automatically capture the best quality document images using mobile or tablet devices with the help of real-time calibration of parameters, such as distance of capture, ideal resolution, etc. An analysis and relevant enhancement/correction of the document image quality is done, and an acknowledgment is sent. It also establishes the validity of the document through photos, signatures, etc.

"We are delighted with the issue of this patent. This underlines our commitment to constantly deliver state-of-the-art products and solutions. This invention will reduce organizations’ dependence on bulky devices and help them leverage the processing power of mobile devices to effectively capture, analyze, and process document images," said Virender Jeet, CEO, Newgen Software.

Newgen has filed 44 patents till date, out of which 21 have been granted in India and the US. The patents acquired by Newgen further strengthen its leadership in building cutting-edge, industry-specific applications and driving digital transformation.

Annually, Newgen invests 9-10% of its revenue on research and development and has a skilled team of about 500 people with deep domain expertise.

About Newgen Software Technologies Limited:

Newgen is a leading provider of low code digital automation platform. Globally, successful financial institutions, insurance, government, and shared services organizations rely on Newgen’s industry-recognized products and applications—to manage their processes (BPM), content (ECM), and communications (CCM)—for connected operations. From customer onboarding to service requests, from loans and deposits to underwriting, and many more, Newgen’s industry applications transform business-critical operations with agility. Newgen’s cloud-based platform enables digital transformation initiatives for superior customer experience, optimized costs, and improved efficiencies.

For more details, visit www.newgensoft.com

Media Contact:
meenakshi.arora@newgensoft.com