Hollysys Automation Q4 Profit Up 72%, Issues Upbeat Outlook

(RTTNews) - Hollysys Automation Technologies, Ltd. (HOLI), a provider of automation and control technologies, on Wednesday reported a 72 percent surge in profit for the fourth quarter from last year on strong revenue growth. Looking ahead, the company forecast higher earnings and revenue for fiscal 2015, compared to the prior year.

The China-based company also said that Qingtai Chen has resigned as an independent director of the company's board of directors with immediate effect, and Jianyun Chai has been elected as a member of the audit committee.

Net income attributable to Hollysys Automation for the fourth quarter was $21.49 million or $0.36 per share, up from $12.52 million or $0.22 per share in the year-ago period.

Excluding non-cash share-based compensation expenses, amortization of acquired intangibles and acquisition-related consideration fair value adjustments, adjusted net income for the quarter was $25.76 million or $0.44 per share, compared to $16.56 million or $0.29 per share in the prior-year quarter.

Revenues for the quarter grew 40 percent to $158.85 million from $113.43 million in the year-ago period.

Integrated contract revenue rose 27 percent to $137.22 million, while product sales more than doubled to $13.38 million.

Backlog at the end of the quarter was $556.01 million, up 13.8 percent from the year-ago period.

For fiscal 2014, Hollysys Automation's net income was $69.85 million or $1.20 per share, up from $51.99 million or $0.92 per share in the previous year. Adjusted net income was $87.17 million or $1.49 per share, compared to $57.61 million or $1.02 per share in the prior year.

Revenues for the year grew 49 percent to $521.33 million from $349.06 million last year.

Looking ahead to fiscal 2015, Hollysys Automation forecasts adjusted net income in a range of $94 million to $98 million, on revenues in a range of $565 million to $600 million.

In a separate statement, Hollywood Automation said that Qingtai Chen has resigned as an independent director of the company's board of directors with immediate effect. Chen has been a board member since June 2008 and resigned due to personal reasons.

The board approved the resignation of Chen from his positions as the director and the member of audit committee of the board, and has elected Jianyun Chai as a member of the audit committee.

Thus, the audit committee will be comprised of three members, Colin Sung, Jianyun Chai and Jerry Zhang, with Colin Sung as the Chairman of the Audit Committee.

HOLI closed Wednesday's trading at $22.45, down $0.08 or 0.36 percent on a volume of 0.40 millon shares.