QualityStocks would like to highlight Yucheng Technologies Limited (NASDAQ:YTEC), a leading IT service provider to the Chinese financial service market. Headquartered in Beijing, China, Yucheng services clients from its nationwide network, with approximately 2,600 employees. Yucheng provides a comprehensive suite of IT solutions to Chinese Banks.
In the company’s news yesterday, Yucheng Technologies announced its unaudited financial results for the fourth quarter and full year ended December 31, 2011, reflecting better-than-expected revenue growth for 2011.
The company reported fourth quarter 2011 total revenues of $29.6 million, an increase of 35.1 percent year-over-year and an increase of 55.1 percent sequentially. Total revenues for full year 2011 were $77.1 million, an increase of 26.5 percent year-over-year.
Gross margin for the fourth quarter of 2011 was 42.8 percent, compared to 50.7 percent in the prior year period and 49.7 percent in the previous quarter. Gross margin in 2011 was 47.0 percent, compared to 48.8 percent in 2010.
Fourth quarter 2011 net income was $3.5 million, or $0.17 per diluted share, compared to a net loss of $1.6 million, or $(0.08) per diluted share in the prior year period. The company reported full year 2011 net income of $7.1 million, or $0.36 per diluted share, compared to $0.3 million, or $0.02 per diluted share in 2010.
As of December 31, 2011, Yucheng reported cash and cash equivalents and restricted cash totaling $32.5 million, compared to $18.7 million as of September 30, 2011, and $24.5 million as of December 31, 2010.
Operating cash flow in 2011 was a net inflow of $6.6 million.
“We concluded the fiscal year 2011 with another quarter of solid results. We achieved better revenue growth in 2011 than we originally forecasted at the beginning of the year. Looking back over the past two years, we have made steady improvements in management of our operations and turned the company towards positive growth, which is demonstrated by the excellent execution of our operations for eight consecutive quarters,” Weidong Hong, CEO of Yucheng stated in the press release. “Building upon the No. 1 position in the industry, we are committed to further improving our operations and expanding the market share. We look forward to continuing the quarter over quarter of excellent execution to deliver solid and sustainable financial results.”
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
