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CLPS Incorporation Reports Financial Results for the First Half of Fiscal Year 2025
CLPSCLPS(CLPS) Prnewswire·2025-03-05 10:00

Core Viewpoint - CLPS Incorporation reported significant financial improvements in the first half of fiscal year 2025, driven by strategic initiatives in global expansion and industry diversification, resulting in a revenue increase of 15.3% year-over-year and a turnaround in profitability [4][9][10]. Financial Performance - Revenue for the first half of fiscal 2025 increased by 11.0million,or15.311.0 million, or 15.3%, to 82.8 million from 71.8millionintheprioryearperiod[11].−Grossprofitroseby71.8 million in the prior year period [11]. - Gross profit rose by 3.4 million, or 21.6%, to 19.2million,withgrossmarginexpandingto23.119.2 million, with gross margin expanding to 23.1% from 21.9% [17]. - Operating income was 0.2 million compared to an operating loss of 0.9millioninthesameperiodofthepreviousyear[21].−Netincomewas0.9 million in the same period of the previous year [21]. - Net income was 0.2 million, a significant improvement from a net loss of 1.0millionintheprioryear[24].RevenueBreakdown−RevenuegeneratedoutsideofmainlandChinasurged110.41.0 million in the prior year [24]. Revenue Breakdown - Revenue generated outside of mainland China surged 110.4% to 19.0 million from 9.0million,primarilyduetostrongperformanceintheAPACregion[5][14].−RevenuefromITconsultingservicesincreasedby9.0 million, primarily due to strong performance in the APAC region [5][14]. - Revenue from IT consulting services increased by 10.6 million, or 15.2%, to 80.1million,accountingfor96.780.1 million, accounting for 96.7% of total revenue [16]. - Revenue from the banking area increased by 4.9 million, or 17.0%, to 33.5million,whilerevenuefromwealthmanagementdecreasedby33.5 million, while revenue from wealth management decreased by 3.2 million, or 17.3%, to 15.4million[16].StrategicInitiatives−ThecompanyintensifiedinvestmentsinproprietaryproductdevelopmentbyestablishingtheChinaDevelopmentCenter(CDC)andGlobalTestingCenter(GTC)toenhancetechnologicalcapabilities[2].−Thelaunchofthenext−generationRPAproduct,Nibot,ishighlightedasakeyinnovationdrivingclientvalueandoperationalefficiency[7].OperationalEfficiency−Sellingandmarketingexpensesdecreasedby10.015.4 million [16]. Strategic Initiatives - The company intensified investments in proprietary product development by establishing the China Development Center (CDC) and Global Testing Center (GTC) to enhance technological capabilities [2]. - The launch of the next-generation RPA product, Nibot, is highlighted as a key innovation driving client value and operational efficiency [7]. Operational Efficiency - Selling and marketing expenses decreased by 10.0% to 2.5 million, reflecting improved efficiency through AI-driven automation and workforce optimization [18]. - General and administrative expenses increased by 26.2% to 14.1million,primarilyduetohigherpersonnel−relatedcostslinkedtotheestablishmentoftheCDCandGTC[20].CashFlowandOutlook−AsofDecember31,2024,thecompanyhadcashandcashequivalentsof14.1 million, primarily due to higher personnel-related costs linked to the establishment of the CDC and GTC [20]. Cash Flow and Outlook - As of December 31, 2024, the company had cash and cash equivalents of 35.6 million, up from $29.1 million as of June 30, 2024 [27]. - The company expects total sales growth for fiscal year 2025 to be in the range of approximately 12% to 17% and non-GAAP net income growth in the range of approximately 15% to 20% year-over-year [29].