Ata (NASDAQ:ATAI)

• Net revenues of RMB52.2 million (US$8.4 million), compared to RMB60.5 million
• Gross profit of RMB29.8 million (US$4.8 million), compared to RMB32.8 million
• Net loss of RMB6.1 million (US$1.0 million), compared to net income of RMB3.3 million
• Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Fourth Quarter 2013 were both RMB0.12 (US$0.02)

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "In Fiscal Year 2013, we successfully delivered the first computer-based National Unified Certified Public Accountants ('CPA') exam on behalf of the highly respected Chinese Institute of Certified Public Accountants ('CICPA'). We administered approximately 1.4 million CPA exams across China and the Hong Kong and Macau Special Administrative Regions in October. During the year, ATA also delivered many exams for a number of large corporations recruiting new employees as part of our HR Select service. As a result of these efforts, ATA delivered 8.7 million billable exams during Fiscal Year 2013, an 8.9% increase over the prior fiscal year. During this fiscal year, we also experienced some challenges, including decreased demand for the Securities Association of China ('SAC') exam due to a downturn in China's financial industry related to the poor performance of the PRC stock market, which reduced the demand for qualified securities professionals, and lower-than-expected results from our TOEIC and HR Select businesses. Our gross margin for Fiscal Year 2013 was adversely affected by the year-over-year decrease in SAC exam volumes, lower revenue contributions from ATA's test preparation and training solutions business, and implementation expenses incurred to ensure client satisfaction and the smooth delivery of the CPA exam."

Mr. Ma continued, "Despite the challenges we faced with TOEIC and HR Select in Fiscal Year 2013, we intend to continue our efforts to grow these businesses in Fiscal Year 2014, through a strategic and methodical approach focusing on potential client leads generated in Fiscal Year 2013 and further developing our university and college recruitment channel. The goal continues to be to increase ATA's visibility and flexibility through a more diversified revenue stream of government-sponsored exams and corporate assessment exams, which we believe is vital to the Company's long-term growth potential. Over the past few months, we have streamlined our operations and expect the solid foundation we now have in place will not only allow ATA to operate more efficiently going forward but will also enable us to achieve greater results in the initiatives we are working on in Fiscal Year 2014."

Fiscal Year 2014 Outlook

• For the fiscal year ending March 31, 2014 ("Fiscal Year 2014"), ATA expects net revenues of between RMB403.0 million and RMB423.0 million and non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) of between RMB37.0 million and RMB47.0 million.
• For the quarter ending June 30, 2013 ("First Quarter 2014"), ATA expects net revenues of between RMB78.0 million and RMB88.0 million.

Guidance for Fiscal Year 2014 and for First Quarter 2014

For First Quarter 2014, ATA expects net revenues of between RMB78.0 million and RMB88.0 million.

For Fiscal Year 2014, ATA expects net revenues of between RMB403.0 million and RMB423.0 million and non-GAAP net income of between RMB37.0 million and RMB47.0 million.

Third Quarter 2013 Financial

• Net revenues of RMB179.4 million (US$28.8 million), up 24.9%
• Gross profit of RMB79.7 million (US$12.8 million), up 5.7%
• Income from operations of RMB39.6 million (US$6.4 million), compared to RMB44.0 million
• Net income of RMB33.2 million (US$5.3 million), compared to RMB38.1 million
• Adjusted net income excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB35.8 million (US$5.7 million), compared to RMB40.8 million
• Basic and diluted earnings per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Third Quarter 2013 were both RMB1.56 (US$0.26)
• Delivered approximately 4.2 million billable tests, up 34.4%
• RMB294.9 million (US$47.3 million) in cash and no long-term debt as of December 31, 2012

(percentage changes and comparisons are year over year)

Fiscal Year 2013 Outlook

• For the fiscal year ending March 31, 2013 ("Fiscal Year 2013"), the Company is revising its net revenue guidance to between RMB352.0 million and RMB362.0 million, from between RMB390.0 million and RMB410.0 million, and its non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) guidance to between RMB18.0 million and RMB23.0 million, from betweenRMB40.0 million and RMB50.0 million. The revisions to the Company's guidance primarily result from lower-than-expected results from the TOEIC and HR Select businesses and weaker demand for the Securities Association of China ("SAC") exam.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We are pleased to report that in October we successfully administered the first computer-based National Unified Certified Public Accountants exam ("China CPA exam"), with approximately 1.4 million exams taken across China and the Hong Kong and Macau Special Administrative Regions, which we believe makes this particular exam one of the world's largest computer-based exams ever deployed. We delivered a total of 4.2 million billable exams in Third Quarter 2013. In addition to the China CPA exam, we administered large-scale exams as a part of recruitment efforts by various well-known corporations, including the Bank of China, Carlsberg, Shanghai Volkswagen, and Procter & Gamble. While we achieved double-digit growth on the top line, our gross margin was adversely affected by a year-over-year decrease in SAC exam volumes, which resulted in lower contributions as a percentage of total revenues, and implementation expenses incurred to ensure client satisfaction and the smooth delivery of the China CPA exam."

Mr. Ma continued, "We continued with our sales and marketing efforts in our TOEIC and HR Select businesses during Third Quarter 2013, which we believe is key to diversifying our sources of revenue from government-sponsored exams. The productivity from these new business initiatives, however, has not met our expectations despite our proactive sales and marketing efforts, and we are implementing changes in this area to optimize our use of resources."

Second Quarter 2013 Financial and Operating Highlights

• Net revenues of RMB46.8 million (US$7.4 million), compared to RMB70.4 million
• Gross profit of RMB21.6 million (US$3.4 million), compared to RMB40.1 million
• Loss from operations of RMB11.0 million (US$1.8 million), compared to income from operations of RMB2.2 million
• Net loss of RMB9.1 million (US$1.4 million), compared to net income of RMB1.4 million
• Adjusted net loss excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB6.6 million (US$1.1 million), compared to adjusted net income excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB4.6 million
• Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Second Quarter 2013 were both RMB0.30 (US$0.04)
• Delivered approximately 1.4 million billable tests, compared to 1.8 million billable tests

Fiscal Year 2013 Outlook

• For the fiscal year ending March 31, 2013 ("Fiscal Year 2013"), the Company is revising its net revenue guidance to between RMB390.0 million and RMB410.0 million, from between RMB420.0 million and RMB440.0 million, and its non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) guidance to between RMB40.0 million and RMB50.0 million, from betweenRMB70.0 million and RMB80.0 million. The revisions to the Company's guidance primarily result from fewer billable exams for the Securities Association of China ("SAC") andimplementation costs associated with the new computer-based National Unified Certified Public Accountants ("CPA") exam, as well as prolonged contract negotiation and delayed delivery of services for certain clients and investments in the TOEIC and HR Select businesses.
• For the quarter ending December 31, 2012 ("Third Quarter 2013"), ATA expects net revenues will be betweenRMB170.0 million and RMB200.0 million.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We successfully delivered 1.4 million billable exams in Second Quarter 2013, the majority of which were for the SAC. We also administered a large-scale internal assessment exam for the Bank of China ("BOC") in 74 cities across 31 provinces to help the BOC determine which of its employees would be most suitable for overseas placement. Our net revenues for the period, however, came in below the guidance we provided due to lower exam volumes for the SAC exam caused by a slowdown in the financial industry, as well as delayed delivery of services for contracted projects. Our gross margin was affected by a year-over-year decrease in SAC exam volumes and anticipated lower contributions from the Company's test preparation and training solutions business.

"We were very pleased to sign the official contract with the Chinese Institute of Certified Public Accountants in September that names ATA the service provider for the computer-based CPA exam in 2012. We continue to work to diversify our sources of revenue from government-sponsored exams," Mr. Ma commented. "During Second Quarter 2013, ATA worked to ensure client satisfaction and the smooth delivery of the CPA exam that took place in October, and we expect to begin seeing contributions from the CPA exam to our top line in Third Quarter 2013."

Mr. Ma continued, "During Second Quarter 2013, we also continued moving forward with our plans to grow ATA's TOEIC and HR Select businesses. Despite the unexpected decrease in volumes for the SAC exam, which we anticipate will carry into the remainder of Fiscal Year 2013, we will continue to push forward with our sales and marketing efforts for our TOEIC and HR Select businesses in Third Quarter 2013, which is typically our strongest quarter due to the timing of campus recruitment projects. ATA expects to begin realizing a return on these new business efforts in TOEIC and HR Select in the coming quarters. The Company considers diversifying its revenue streams from the government-sponsored exams a crucial component of its long-term strategy. Increasing our TOEIC and HR Select businesses will provide ATA with greater visibility and flexibility, while helping to offset the seasonal nature of our core testing business over time."

First Quarter 2013 Financial and Operating Highlights

• Net revenues of RMB88.3 million (US$13.9 million), up 13.7%
• Gross profit of RMB46.7 million (US$7.4 million), up 3.9%
• Income from operations of RMB5.8 million (US$0.9 million), compared to RMB14.2 million
• Net income of RMB5.3 million (US$0.8 million), compared to RMB13.0 million
• Adjusted net income excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) of RMB9.7 million (US$1.5 million), compared to RMB13.2 million
• Basic and diluted earnings per ADS for First Quarter 2013 were both RMB0.22 (US$0.04)
• Delivered approximately 2.1 million billable tests, up 14.8%

Fiscal Year 2013 Outlook

• For the fiscal year ending March 31, 2013 ("Fiscal Year 2013"), ATA expects net revenues will be between RMB420.0 million and RMB440.0 million and non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) between RMB70.0 million and RMB80.0million.
• For the quarter ending September 30, 2012 ("Second Quarter 2013"), ATA expects net revenues will be between RMB50.0 million and RMB60.0 million.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "During First Quarter 2013, we successfully delivered 2.1 million billable exams, the majority of which were for the China Banking Association ("CBA") and Securities Association of China ("SAC"). We also administered recruitment exams and clerk qualification tests for various banking clients during the period. However, our gross margin was affected by a year-over-year decrease in SAC exam volumes and the absence of a one-time price increase that was put in place in the prior-year period, both of which impacted SAC exam contributions as a percentage of total revenues. We also incurred higher costs of services for hiring additional staff for our TOEIC operations team."

Mr. Ma continued, "During the period, we moved forward with our plans to expand sales and marketing efforts for HR Select and TOEIC, hiring over 40 individuals in multiple cities acrossChina, primarily in Guangzhou, Shenzhen, Nanjing, Chengdu, Xi'an, and Wuhan. While these investments will impact our bottom line in the near term, we expect to begin realizing a return on our efforts in the coming quarters, which will help to offset the seasonal nature of our core testing business in the future. We remain confident in the value we bring to our private corporate clients and are working hard to take advantage of these growth opportunities."

BEIJING, Aug.6, 2012 /PRNewswire-Asia-FirstCall/ -- ATA Inc. ("ATA" or the "Company", Nasdaq: ATAI)

The Board of Directors approved and declared a special cash dividend of US$0.087 per common share, orUS$0.174 per ADS, on its outstanding shares to shareholders of record as of the close of trading on August 20, 2012. The total amount of cash to be distributed as part of the special dividend is expected to be approximatelyUS$4.0 million. The dividend will be paid on or around September 20, 2012. The depository, Citibank, N.A., will charge a fee of US$0.02 per ADS to ADS holders upon payment of the dividend.

Fourth Quarter 2012 Results

• Net revenues of RMB60.5 million (US$9.6 million), up 21.6%
• Gross profit of RMB32.8 million (US$5.2 million), up 46.6%
• Income from operations of RMB4.1 million (US$0.7 million), compared to loss from operations of RMB8.1 million 
• Net income of RMB3.3 million (US$0.5 million), compared to net loss of RMB5.6 million 
• Adjusted net income excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) of RMB5.9 million (US$0.9 million), compared to adjusted net loss of RMB5.8 million 
• Basic and diluted earnings per ADS for Fourth Quarter 2012 were both RMB0.14 (US$0.02).
• Delivered approximately 1.3 million billable tests, up 26.2%

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "During Fiscal Year 2012, we not only successfully expanded upon a number of our close, long-term relationships with clients, particularly for HR Select, but we also successfully delivered new exams, such as those for China Customs and security guards. We are excited to have begun this relationship with China's General Administration of Customs and are pleased that the agency was satisfied with the transition of their paper-based customs declarer certification exam to our computer-based platform. Largely due to these new efforts and continued growing demand for ATA's HR Select and TOEIC, we delivered 8.0 million billable tests during the year, an increase of 16.2% compared to fiscal 2011. We reported a gross margin of 54.9% for Fiscal Year 2012, which we believe validates the scalability of our computer-based testing business model.

"We are very pleased with our results for both Fourth Quarter 2012 and Fiscal Year 2012. Despite the fiscal fourth quarter's being a seasonally weaker period and the rescheduling of a banking exam from Fourth Quarter 2012 to First Quarter 2013, ATA achieved year-over-year growth in net revenues, gross profit, and net income."

Fiscal Year 2013 Outlook

• For the fiscal year ending March 31, 2013 ("Fiscal Year 2013"), ATA expects net revenues will be between RMB420.0 million and RMB440.0 million (US$66.7 million and US$69.9 million) and non-GAAP net income (net income excluding share-based compensation expense and foreign currency exchange gain/loss) between RMB70.0 million and RMB80.0 million (US$11.1 million and US$12.7 million).
• For the quarter ending June 30, 2012 ("First Quarter 2013"), ATA expects net revenues will be between RMB80.0 million and RMB90.0 million.

Mr. Ma concluded, "We remain confident in the long-term prospects of China's computer-based testing market, and continue focusing on growing each of our existing business segments while exploring new test titles and attracting new test takers. We anticipate continued growth in our core testing services business in Fiscal Year 2013 as we continue our efforts to increase awareness of our exam offerings and work with different government agencies that are interested in the possibility of converting a number of their paper-based exams to our cost-effective and efficient computer-based platform. We also expect continued momentum in HR Select and TOEIC growth as we expand upon our existing client relationships and develop new relationships. As computer-based testing gains traction in China, we believe that the nation's population will increasingly realize the importance of benchmarking and certifying their skills for potential employers. ATA continues to follow a strict cost structure that makes our business inherently scalable and continues to generate excess cash flow that will help finance the Company's ongoing healthy, organic growth."

Third Quarter 2012 Financial and Operating Highlights (percentage comparisons are year over year)

• Net revenues of RMB143.6 million (US$22.8 million), up 5.7%
• Gross profit of RMB75.4 million (US$12.0 million), up 2.9%
• Income from operations of RMB44.0 million (US$7.0 million), up 27.0%
• Net income of RMB38.1 million (US$6.0 million), up 22.0%
• Adjusted net income excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB40.8 million (US$6.5 million), up 26.9%
• Basic and diluted earnings per ADS for Third Quarter 2012 were RMB1.66 (US$0.26) and RMB1.62(US$0.26), respectively.
• Delivered 3.1 million billable tests in Third Quarter 2012, up 4.9%
• RMB253.3 million (US$40.2 million) in cash and no long-term debt as of December 31, 2011

Company Revises Net Revenue Guidance for Fiscal 2012 / Provides Fiscal 2012 Fourth Quarter Outlook

• For the fiscal year ending March 31, 2012 ("Fiscal Year 2012"), the Company is revising its net revenue guidance to between RMB345.0 million and RMB350.0 million, from between RMB395.0 million and RMB415.0 million, as a result of longer-than-anticipated negotiations relating to the Security Guard exams and the rescheduling of a banking exam from Fourth Quarter 2012 to First Quarter 2013.
• For Fiscal Year 2012, the Company is reiterating its net income guidance of between RMB55.0 million and RMB60.0 million.

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "ATA continued to make progress in its operations throughout the quarter with year-over-year growth in net revenues, gross profit, and net income. During the past quarter, we delivered 3.1 million billable tests, with the total number of tests delivered year-to-date up 14.4% compared to the first nine months of fiscal 2011. The growth in the number of tests delivered is largely due to increased demand for ATA's HR Select and TOEIC. We believe that we will continue to realize certain economies of scale as more individuals in China seek to improve where they rank in the eyes of potential employers."

Second Quarter 2012 Results

Fourth Quarter Results:

• Net revenues of RMB49.7 million (US$7.6 million), representing an increase of 5.3% year over year during a seasonally weaker quarter
• Gross profit of RMB22.4 million (US$3.4 million), representing an increase over RMB17.3 million in the prior-year period; gross margin of 45.0%, representing an increase over 36.6% in the prior-year period
• Loss from operations of RMB8.1 million (US$1.2 million), compared to RMB38.0 million in the prior-year period
• Net loss of RMB5.6 million (US$0.9 million), or RMB0.13 per common share (US$0.02), compared to net loss of RMB38.1 million, or RMB0.86 per common share, in the prior-year period
• Adjusted net loss excluding share-based compensation expense and foreign currency exchange gain (Non-GAAP) of RMB5.8 million (US$0.9 million), compared to net loss of RMB35.3 million in the prior-year period
• Basic and diluted losses per ADS were RMB0.26 (US$0.04). Basic and diluted losses per ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) were RMB0.26 (US$0.04). Each ADS represents two common shares of ATA

The Company believes revenue will be between RMB395.0 million and RMB415.0 million (US$60.3 million and US$63.4 million) and net income between RMB40.0 million and RMB45.0million (US$6.1 million and US$6.9 million) for the fiscal year ending March 31, 2012 ("Fiscal Year 2012")

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, stated, "We are very pleased with our return to profitability in Fiscal Year 2011 and with our fourth quarter financial results, despite the period's being our seasonally weaker quarter. We have continued to benefit from our existing long-term customer relationships and increased the total number of delivered billable tests by 19.9% to 6.9 million during the fiscal year. We reported over 50% gross margin for Fiscal Year 2011, which we feel supports our highly scalable method of delivering computerized testing services.

Third Quarter 2011 Highlights  

• Net revenues increased by 77.8% year-over-year to RMB135.9 million (US$20.6 million). Revenues exceeded ATA's guidance for Third Quarter 2011 of RMB111 million to 115 million.
• Gross profit increased by 93.2% year-over-year to RMB73.3 million (US$11.1 million), mainly due to higher total net revenues.
• Income from operations increased by 257.7% year-over-year to RMB34.7 million (US$5.3 million).
• Net income increased by 384.2% year-over-year to RMB31.2 million (US$4.7 million).
• Net income excluding share-based compensation expense and foreign currency exchange gain or loss (non-GAAP) increased by 268.9% year-over-year to RMB32.2 million (US$4.9 million).
• Basic and diluted income per ADS excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) were RMB1.44 (US$0.22). Each ADS represents two common shares of ATA.
• Guidance is maintained for net revenues in the range of RMB280 million to RMB300 million for the fiscal year ending March 31, 2011.
• ATA delivered 3.0 million tests during Third Quarter 2011, an increase of 100.5% from the third quarter of fiscal year 2010.

"Most of our businesses did quite well in the quarter, meeting or exceeding expectations. Considering the performance of our traditional and new businesses and further advances in new possible contracts, including potential testing of security guards, we are very pleased with our results this quarter."

"For example, on November 2, 2011, we held a seminar for representatives from Public Security Bureaus nationwide to provide training on the preparation, execution, and marking of the examination for security guards.  We were introduced at the seminar by the Ministry of Public Security as the provider of the examination, and we have recently commenced commercial contract discussions regarding the examination with several provinces.

"As a result of our strong third quarter, we are maintaining our previous revenue guidance for the full fiscal year 2011.

"We continue to believe that our strategy is sound, our actions effective, and our progress aligned for good long-term growth. We look forward to delivering attractive results in the years ahead, which we expect will create substantial value for our shareholders."

Guidance for Fiscal Year 2011

For its fiscal year ending March 31, 2011, ATA continues to expect net revenues to be in the range of RMB280 million to RMB300 million, which would be up 14.3% to 22.4% from its net revenues in fiscal year 2010 of RMB245.0 million.

These are ATA's current projections, which are subject to change. You are cautioned that operating results in ATA's Third Quarter 2011 are not necessarily indicative of operating results for any future periods.

First Quarter 2011 Highlights:

• Total net revenues increased by 6.6% year-over-year to RMB 85.0 million (US$ 12.5 million).
  
• Gross profit decreased by 1.7% year-over-year to RMB 43.8 million (US$ 6.5 million), mainly due to a decrease in the average price of exams delivered for the China Banking Association.
  
• Income from operations decreased by 27.9% year-over-year to RMB 11.2 million (US$ 1.6 million), primarily due to investments in developing our Test of English for International Communication ("TOEIC") and HR Select businesses.
  
• Net income decreased by 29.5% year-over-year to RMB 9.0 million (US$ 1.3 million).
  
• Net income excluding share-based compensation expense and foreign currency exchange loss (non-GAAP) decreased by 26.1 % year-over-year to RMB 10.4 million (US$ 1.5 million).
  
• Basic and diluted earnings per ADS were RMB 0.40 (US$ 0.06) 2011 compared to RMB0.56 (US$0.08) and RMB0.56 (US$0.08).
  
• Basic and diluted earnings per ADS excluding share- based compensation expense and foreign currency exchange loss (non-GAAP) were RMB 0.46 (US$ 0.06) compared to RMB0.62 (US$0.09) and RMB0.62 (US$0.09).

Mr. Kevin Ma, ATA's Chairman and Chief Executive Officer, said "Our first quarter performance shows the positive aspects of our solid testing services business and also our prudent investments to expand our two major emerging businesses, our TOEIC and HR Select businesses, which we believe have strong growth potential.

"We believe our business prospects, both for our traditional testing services as well as newer business lines, are gradually gaining momentum. For example, we have seen positive progress toward implementation of the program for testing security guards in China, which is required by a new law and sponsored by the Ministry of Public Security. We have completed the trial testing by giving the exam to about 3,000 participants in 10 cities in China in June 2010 and the feedback on the trial test was positive. The Ministry of Public Security is currently carrying out internal procedures for approval of the testing program.

"We are maintaining our previous revenue guidance range for the full fiscal year 2011, but we see a shift of testing revenues from the second quarter to the third quarter, primarily due to changes in scheduling for the securities industry tests. Therefore, compared with our normal seasonal pattern, we expect second quarter revenues to be lower and third quarter revenues to be higher than previously expected.

"Overall, we remain confident that our strategy is sound, our actions effective, and our progress aligned for a good long-term growth trend for our business. We believe our attractive results in the years ahead should create substantial value for our shareholders."

Guidance for Fiscal Second Quarter 2011 and Fiscal Year 2011

For the fiscal second quarter 2011, ending September 30, 2010, ATA expects:

• Net revenues to be in the range of RMB 24 million to RMB 28 million.  This would  represent a decrease in the range of 32.7% to 42.3%.

For its fiscal year ending March 31, 2011, ATA continues to expect:

• Net revenues to be in the range of RMB 280 million to RMB 300 million, which would be up 14.3% to 22.4% from its net revenues in fiscal year 2010 of RMB 245.0 million.

These are ATA's current projections, which are subject to change. You are cautioned that operating results in ATA's fiscal first quarter 2011 ended June 30, 2010 and for its fiscal year 2010 ended March 31, 2010 are not necessarily indicative of operating results for any future periods.

Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures. The GeoTeam® non-GAAP figures apply a 25% and 36% tax rate for Chinese and United States companies respectively.