- Hollysys Automation Technologies (HOLI +24.8%) Q3 revenue grew by 32.1% Y/Y to $120.62M. Revenue split: Integrated contract $104.74 (+34% Y/Y), product sales $9.91M (+1.7% Y/Y) and services rendered $5.97M (+76.2% Y/Y).
- Segment revenues: Industrial automation +20% Y/Y to $45.7M, and contracts +55.6% Y/Y to $82.2M; Rail business +30.9% Y/Y to $45.5M, while contracts declined by 24.6% Y/Y to $37.9M; and Mechanical and electrical installation services +59.4% Y/Y to $29.4M and contracts +303% Y/Y to $21.2M.
- Q3 gross margin improved by 564 bps to 36.4% and operating margin improved by 690 bps to 20.9%.
- Q3 Expenses: Selling increased by 4.1% Y/Y to $6.2M, G&A declined by 13% Y/Y to $7.62M due to a decrease of $2.3M in bad debt provision and R&D increased by 43.7% Y/Y to 8.76M.
- Total new contracts achieved $141.3M and backlog was $578.9M as of 31 March 2018.
- Net cash provided by operating activities was $5.1M.
- FY18 Outlook, reaffirmed: Revenue $500-530M vs $521.73M consensus and non-GAAP net income of $100-110M.
- Previously: HollySys Automation misses by $0.08, beats on revenue (May 14)
- Now read: HollySys Automation: Weak Execution Compresses Value
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