Yucheng Technologies (YTEC) research, news, and more from GeoInvesting

Company description

Tue, 22 Apr 2008 04:00:00 GMT

Yucheng Technologies Limited is a leading IT service provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has more than 1,700 employees and has established an extensive footprint to serve its banking clients nationwide with subsidiaries and representative offices in eleven cities. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks including 1) channel-related IT solutions, such as web banking and call centers, 2) business-related processing solutions, such as core banking systems, foreign exchange and treasury management, and 3) management-related IT solutions, such as risk analytics and business intelligence. It is also a leading third party provider of POS merchant acquiring services in partnership with banks in China.

Going Private News

Fri, 28 Dec 2012 05:00:00 GMT

BEIJING, December 28, 2012 /PRNewswire/ -- Yucheng Technologies Limited (NASDAQ: YTEC) ("Yucheng" or the "Company"), a leading provider of IT Solutions to the financial services industry in China, announced today that the Company completed the merger of New Sihitech Acquisition Limited with and into the Company (the "merger") by completing the registration of the merger with the Registrar of Corporate Affairs of the British Virgin Islands. Following the completion of the merger, the Company will become a privately held company and the ordinary shares of the Company will no longer be traded on the NASDAQ Global Select Market.

Under the terms of the agreement and plan of merger, which was approved by the Company's shareholders at an extraordinary meeting held on December 27, 2012, each outstanding ordinary share of the Company, other than the Founder Shares and Rollover Shares (as defined in the Company's proxy statement dated November 30, 2012) had been cancelled in exchange for the right to receive $3.90 per share in cash without interest and net of any applicable withholding taxes. In addition, each share of restricted stock under the Company's 2006 Performance Equity Plan (other than shares of restricted stock granted to Mr. Weidong Hong, chairman of the board of directors and chief executive officer of the Company, and rollover shareholders who have waived their right to receive the merger consideration and continue to beneficially own their shares following the merger) was cancelled and converted into the right to receive $3.90 in cash without interest, net of any applicable withholding taxes.

The Company has engaged Continental Stock Transfer & Trust Company as its paying agent to process the payment of merger considerations to its shareholders. Shareholders of record will receive a letter of transmittal and instructions on how to surrender their shares in exchange for the merger consideration. Shareholders should wait to receive the letter of transmittal before surrendering their shares.

The Company also intends to promptly request that trading of its ordinary shares on the NASDAQ be suspended. The Company will request an application on Form 25 be filed with the SEC to remove the Company's ordinary shares from listing on The NASDAQ Global Select Market. The Company intends to terminate its reporting obligations under the Securities Exchange Act of 1934, as amended, by promptly filing Form 15 with the SEC. The Company's obligations to file or furnish with the SEC certain reports and forms, including Form 20-F and Form 6-K, will be suspended immediately as of the filing date of the Form 15 and will cease once the deregistration becomes effective.

Going Private News

Thu, 27 Dec 2012 05:00:00 GMT

BEIJING, December 27, 2012 /PRNewswire/ -- Yucheng Technologies Limited (NASDAQ: YTEC, "Yucheng" or the "Company"), a leading provider of IT Solutions to the financial services industry in China, announced today that, at an extraordinary general meeting of shareholders held today (the "EGM"), the Company's shareholders voted in favor of the proposal to approve the previously announced agreement and plan of merger dated August 13, 2012 (the "Merger Agreement"), among the Company, New Sihitech Limited ("Parent"), a British Virgin Islands business company wholly owned by Mr. Weidong Hong, chairman of the board of directors and chief executive officer of the Company, and New Sihitech Acquisition Limited ("Merger Sub"), a British Virgin Islands business company wholly owned by Parent, pursuant to which Merger Sub will merge with and into the Company, with the Company continuing as the surviving company and wholly owned by Parent (the "merger").

Approximately 76.44% of the Company's total outstanding ordinary shares were voted in person or by proxy at the EGM. Of the ordinary shares voted in person or by proxy at the EGM, approximately 92.80% were voted in favor of the proposal to approve the Merger Agreement and the transactions contemplated therein, including the merger, and approximately 92.79% were voted in favor of the proposal to authorize the directors of the Company to do all things necessary to give effect to the Merger Agreement.

Each director nominee, Weidong Hong, Jeffrey R. Williams, Tianqing Chen, Yingjun Li, Zhengong Chang and Ning Jia, was elected to the board of directors by shareholders representing at least a majority of the shares present and voting in person or by proxy at the EGM.

The parties expect to complete the merger as soon as practicable. Once the merger becomes effective under the laws of the British Virgin Islands, the Company's shares will no longer be listed on the NASDAQ Global Select Market. Public shareholders of the Company will receive cash payments of $3.90 per share in return for their shares

Comments & Business Outlook

Wed, 15 Aug 2012 04:00:00 GMT

Second Quarter ended June 30, 2012.

Second quarter software & solutions revenues of US$20.4 million, an increase of 48.7% year over year;
Second quarter total revenues of US$21.5 million, an increase of 35.7% year over year, and second quarter net revenues (Non-GAAP)(6)(1) were the same as total revenues;
Second quarter operating income of US$2.5 million, an increase of 25.5% year over year, and second quarter operating income (Non-GAAP)(4)of US$3.1 million, an increase of 40.0% year over year;
Second quarter operating margin of revenue of 11.5%, as compared to 12.4% in the prior year period, and second quarter operating margin of net revenue (Non-GAAP)(5) of 14.5%, as compared to 14.1% in the prior year period;
Second quarter net income of US$1.2 million, or US$0.06 per share, as compared to net income of US$1.6 million, or US$0.08 per share in the prior year period, and second quarter net income (Non-GAAP)(6) of US$1.9 million, orUS$0.10 per share, as compared to US$1.9 million, or US$0.10 per share in the prior year period;

"We continued the strong revenue growth in software & solutions revenues while seeing continued declining revenues in platform & maintenance services businesses. On the other hand, the trend of rising wages continues to increase although the consumer price index (CPI) has dropped to a much more reasonable level, reflecting the intense competition for talent in our industry, which caused further declining gross margin compared with last year. We do not expect the trend of wage inflation to reverse before the end of the year," said Mr. Weidong Hong, CEO of Yucheng Technologies. "All though we are in a difficult period with increasing competition and rising costs, we are still optimistic about the longer term potential of the company with our leading position in the industry as evidenced by No. 1 ranking by the latest IDC industry research report."

Business Outlook

For the quarter ending September 30, 2012, Yucheng expects net revenue (non-GAAP) to be approximately US$22.0 million and net income (non-GAAP) per share of US$0.12

Going Private News

Mon, 13 Aug 2012 04:00:00 GMT

BEIJING, Aug. 13, 2012 /PRNewswire-Asia/ -- Yucheng Technologies Limited (Nasdaq: YTEC) ("Yucheng," the "Company," "we," "us" and "our"), a leading China-based provider of IT solutions to the financial services industry in China, today announced that it has entered into an agreement and plan of merger (the "Merger Agreement") with New Sihitech Limited ("Parent"), a British Virgin Islands company wholly-owned by Mr. Weidong Hong, the Company's Chairman and Chief Executive Officer, and New Sihitech Acquisition Limited ("Merger Sub"), a British Virgin Islands company wholly-owned by Parent.

Pursuant to the terms of the Merger Agreement, each of the Company's ordinary shares issued and outstanding immediately prior to the effective time of the merger will be cancelled in exchange for the right to receive US$3.90 in cash, without interest, except for (i) the shares beneficially owned by Mr. Hong, which will be cancelled without receiving any consideration (the "Founder Shares"), (ii) the shares owned by certain of the Company's employees and officers and certain other shareholders (the "Rollover Shareholders"), which will remain outstanding and survive the merger (the "Rollover Shares") and (iii) the shares owned by holders who have validly exercised and not effectively withdrawn or lost their appraisal rights pursuant to Section 179 of the British Virgin Islands Business Companies Act, 2004, as amended. The per share consideration of US$3.90 represents a premium of approximately 26.6% over the closing price and a premium of approximately 43.4% over the 90-trading day volume weighted average price on May 18, 2012, the last trading day prior to the Company's announcement on May 21, 2012 that it had received a "going private" proposal from Mr. Hong. Collectively, the Founder Shares and Rollover Shares represent approximately 33.9% of the Company's ordinary shares.

Parent intends to finance the merger through a combination of proceeds in the amount of US$48 million from an exchangeable notes subscription agreement with certain affiliates of China Everbright Investment Management Ltd. and an equity commitment of US$3.594 million by Mr. Hong.

Going Private News

Fri, 01 Jun 2012 04:00:00 GMT

BEIJING, June 1, 2012 /PRNewswire-Asia-FirstCall/ -- Yucheng Technologies Limited (Nasdaq: YTEC) ("Yucheng," the "Company," "we," "us" and "our"), a leading provider of IT solutions to the financial services industry in China, today announced that the Independent Committee of the Company's board of directors (the "Independent Committee") has appointed Roth Capital Partners, LLC as its financial advisor and Cleary Gottlieb Steen & Hamilton LLP as its United States legal counsel.

As previously announced, the Company's board of directors formed the Independent Committee to review and evaluate the May 21, 2012 non-binding proposal from its chairman and chief executive officer, Mr. Weidong Hong, to acquire all of the outstanding shares of the Company not currently owned, legally or beneficially, by Mr. Hong and companies controlled by Mr. Hong. The Independent Committee is considering Mr. Hong's proposal. The Independent Committee has not set a definitive timetable to complete its evaluation of Mr. Hong's proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed, that the Independent Committee will recommend Mr. Hong's proposal or that this or any other transaction will be approved or consummated.

Going Private News

Mon, 21 May 2012 04:00:00 GMT

BEIJING, May 21, 2012 /PRNewswire-Asia-FirstCall/ -- Yucheng Technologies Limited (Nasdaq: YTEC) ("Yucheng," the "Company," "we," "us" and "our"), a leading provider of IT Solutions to the financial services industry in China, today announced that its board of directors has received a preliminary, non-binding proposal (the "Proposal") from Mr. Weidong Hong, chairman of the board and chief executive officer of Yucheng, to acquire all of the outstanding ordinary shares of the Company not currently owned, legally or beneficially, by Mr. Hong and companies controlled by Mr. Hong in cash at a proposed price of $3.80 per ordinary share. Mr. Hong currently beneficially owns approximately 16.1% of the Company's ordinary shares. Please refer to the enclosed Exhibit A for a copy of the proposal.

The Company's board of directors has formed an independent committee (the "Independent Committee") of independent directors, composed of Mr. Yingjun Li, Mr. Zhengong Chang, and Mr. Tianqin Chen, and elected Mr. Yingjun Li as its chairman, to consider the Proposal by Mr. Hong. The Independent Committee has the authority to retain independent legal and financial advisors to assist it. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that a transaction with Mr. Hong or any other transaction will be approved or consummated.

Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Unaudited financial results for the first quarter ended March 31, 2012.

First quarter software & solutions revenues of US$15.0 million, an increase of 56.1% year over year;
First quarter net revenue of US$16.5 million, an increase of 43.7% year over year, and first quarter net revenue (Non-GAAP)(1) of US$16.5 million, an increase of 43.7% year over year;
First quarter operating income of US0.2 million, an increase of 14.5% year over year, and first quarter operating income (Non-GAAP)(4)of US$0.9 million, an increase of 89.6% year over year;
First quarter operating margin of revenue of 1.2%, as compared to 1.6% in the prior year period, and first quarter operating margin of net revenue (Non-GAAP)(5) of 5.2%, as compared to 3.9% in the prior year period;
First quarter net loss of US$0.5 million, or loss of US$0.03 per share, as compared to net income ofUS$27.6 thousand, or US$0.00 per share in the prior year period, and first quarter net income (Non-GAAP)(6) of US$0.1 million, or US$0.01 per share, as compared to US$0.3 million, or US$0.02 per share in the prior year period

"We continued the strong growth in software & solutions revenues at the rate of 56.1% in the quarter, offsetting the negative impact from the declining revenues in platform & maintenance services businesses. On the other hand, increasing costs, notably increasing wages, more subcontracting to strategic partners, and research and development costs, caused declining gross margin compared with last year. We expect this trend to continue in the second quarter and rest of the year," said Mr. Weidong Hong, CEO of Yucheng Technologies. "Although the margin pressure will be persistent in the near term, we are also seeing gradual pricing increase from our customers that will mitigate partially the pressure. As a result, we are still comfortable with our full year guidance. Furthermore, we are optimistic about the long term potential of the company with our leading position in the industry."

Business Outlook

For the quarter ending June 30, 2012, Yucheng expects net revenue (non-GAAP) to be approximately US$19.0 million and net income (non-GAAP) per share of US$0.10.

Comments & Business Outlook

Wed, 15 Feb 2012 05:00:00 GMT

YTEC, unaudited financial results for the fourth quarter and full year ended December 31, 2011.

Fourth quarter software & solutions revenues of US$27.0 million, an increase of 43.9% year over year;
Fourth quarter net revenue of US$29.6 million, an increase of 35.1% year over year, and fourth quarter net revenue (Non-GAAP)(1) of US$29.7 million, an increase of 35.7% year over year;
Fourth quarter operating income of US3.9 million, an increase of 38.9% year over year, and fourth quarter operating income(Non-GAAP)(4) of US$4.3million, an increase of 20.0% year over year;
Fourth quarter operating margin of revenue of 13.1%, as compared to 12.7% in the prior year period, and fourth quarter operating margin of net revenue (Non-GAAP)(5) of 14.5%, as compared to 16.4% in the prior year period;
Fourth quarter net income of US$3.5 million, or US$0.17, as compared to net loss of US$1.6 million, or loss of US$0.08 per share in the prior year period, and fourth quarter net income (Non-GAAP)(6) of US$3.9 million, or US$0.20 per share, as compared to net loss of US$0.8 million, or loss of US$0.04 per share in the prior year period;
Full year total revenue (Non-GAAP) guidance for FY 2012 of US$90.0-92.0 million and EPS (Non-GAAP) ofUS$0.50.

"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," said Mr.Weidong Hong, CEO of Yucheng. "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."

Business Outlook

We expect our software & solution revenues to grow 20-25% in 2012 and our platform & maintenance services revenue to decline about 10%. The gross margin of the software & solution also is anticipated to decline to 43% while the non-GAAP operating margin will be maintained at the level of 13.0%, mostly due to the fact that wage inflation pressure remains high for 2012.

For the quarter ending March 31, 2012, Yucheng expects net revenue (non-GAAP) to be approximately US$14.5 million and net income (non-GAAP) per share of US$0.01.

For the full year of 2012, Yucheng expects net revenue (non-GAAP) to be approximately US$90.0-92.0 million and net income (non-GAAP) per share of US$0.50.

Auditor trail

Fri, 30 Dec 2011 05:00:00 GMT

BEIJING, Dec. 30, 2011 /PRNewswire-Asia-FirstCall/ - Yucheng Technologies Limited (NASDAQ: YTEC) today announced that on December 30, 2011 the Company engaged BDO China Shu Lun Pan CPAs LLP ("BDO China"), the China-based member of BDO International Ltd., as its independent registered public accounting firm, replacing BDO Limited, the Hong Kong member of BDO International Ltd. ("BDO HK"), which resigned on December 30, 2011. The Company believes the transition from BDO HK to BDO China will be smooth and will not adversely affect the Company's upcoming audit. The decision to change auditors was not the result of any disagreements between the Company and BDO Hong Kong on any matters of accounting principles or practices, financial statement disclosure or auditing scope or procedures. The Company understands BDO Hong Kong's resignation is not related in any way to the affairs of the Company but purely a business decision of BDO Hong Kong

Comments & Business Outlook

Thu, 10 Nov 2011 05:00:00 GMT

Third Quarter 2011 Results

Third quarter software & solutions revenues of US$18.0 million, an increase of 28.5% year over year;
Third quarter net revenue of US$19.1 million, an increase of 21.1% year over year, and third quarter net revenue (Non-GAAP)(1) of US$18.9 million, an increase of 19.6% year over year;
Third quarter operating income of US2.2 million, an increase of 12.0% year over year, and third quarter operating income(Non-GAAP) (4)of US$2.9million, an increase of 15.6% year over year;
Third quarter operating margin of revenue of 11.7%, as compared to 12.6% in the prior year period, and third quarter operating margin of net revenue (Non-GAAP)(5) of 15.4%, as compared to 16.0% in the prior year period;
Third quarter net income of US$1.9 million, or US$0.10, as compared to US$1.5 million, or US$0.08 per share in the prior year period, and third quarter net income (Non-GAAP) (6) of US$2.6 million, or US$0.14 per share, as compared to US$2.0 million, or US$0.10 per share in the prior year period;

"We had another solid quarter with results ahead of our expectations continuing our momentum of growth. We are pleased with our performance this year, especially in the current highly competitive environment. In addition to the strong demand for our traditional products such as internet banking and loan management, we have also benefited from faster growing demand in business intelligence and risk management. Our strength in the new solutions in the area of e-commerce, mobile banking, and community bank MIS systems also contributed to our growth this year," said Mr. Hong Weidong, CEO of Yucheng Technologies. "We are also pleased with the latest IDC ranking of IT solutions providers in banking industry in China, which ranked Yucheng No. 1 in market share in 2010. It is a demonstration of our leading industry position and a reflection of the effort the company has put forth in the last several years. We will continue to execute our strategy to further solidify our leading position."

Comments & Business Outlook

Wed, 10 Aug 2011 04:00:00 GMT

Second Quarter 2011 Financial Results

Second quarter software & solutions revenues of US$13.7 million, an increase of 30.0% year over year;
Second quarter net revenue (Non-GAAP)(1) of US$15.8 million, an increase of 28.2% year over year;
Second quarter operating income of US$2.0 million, an increase of 142.3% year over year;
Second quarter operating margin of net revenue (Non-GAAP)(5) of 14.1%, as compared to 6.9% in the year-ago period;
Second quarter net income (Non-GAAP)(6) of US$1.9 million, or US$0.10 per share, as compared to US$0.5 million, or US$0.03 per share in the year-ago period excluding the gain from asset transfer to our joint venture with NTT Data;

"We are pleased to report another solid quarter with results ahead of our expectations to continue our momentum of growth. Demand for our traditional products such as online banking and loan management has remained strong. At the same time, we are also one of the earliest movers in the new solutions such as e-commerce and mobile banking. With the competitive environment now more normal and rational, we expect to gain market share in the coming years. We are confident that we will be able to capitalize on market opportunities and further consolidate our leadership position in the industry," said Mr. Hong Weidong, CEO of Yucheng Technologies.

Business Outlook

For the quarter ending September 30, 2011, Yucheng expects net revenue (non-GAAP) to be approximately US$19.0 million and net income (non-GAAP) per share of US$0.13.

Comments & Business Outlook

Thu, 16 Jun 2011 04:00:00 GMT

BEIJING, June 16, 2011 /PRNewswire-Asia/ -- Yucheng Technologies Limited (NASDAQ: YTEC), a leading provider of IT solutions and services to China's banking industry, today announced the recent win to deploy its industry leading BI solutions for one of the major national policy banks.

Yucheng will build upon its existing portfolio of proprietary Business Intelligence products to deploy for one of the three major national policy banks an internal reporting system. The system will allow business divisions to access its operation reports in an efficient manner and with a better structure. As one of the policy banks, this customer is transforming itself into becoming more like a commercial bank and competing directly against the big four banks and other major joint stock banks in China. As a result of this initiative, this bank is undergoing a major IT system upgrade and the reporting system deployment will be one of the many components in its overall BI solutions that will help banks to better understand its operations and risks.

Mr. Weidong Hong, CEO of Yucheng Technologies stated, "We are pleased that we have been able to deepen our relationship with this newly acquired customer from a year ago. We started the deployment of our proprietary CMIS system for the customer last year and have been in discussion on a number of other projects." Mr. Hong continued, "This most recent win is a demonstration of our customer's recognition of our industry leading comprehensive portfolio of solutions, including the fast growing BI solutions. Building on the success we have had with the customer, we look forward to expanding their IT capabilities in additional business verticals."

Comments & Business Outlook

Tue, 17 May 2011 04:00:00 GMT

First quarter software & solutions revenues of US$9.6 million, an increase of 29.6% year over year;
First quarter net revenue (Non-GAAP)(1) of US$11.5 million, an increase of 27.5% year over year;
First quarter net Income (Non-GAAP)(6) of US$0.3 million, or US$0.02 per share, as compared to US$-0.1 million, or US$-0.01 per share in the year-ago period;

"We are pleased to report another solid quarter with results ahead of our expectations to open the year of 2011 on a high note. After a series of divestures of non-core businesses and restructuring in the last 18 months, we started the new year with more focus on our core business of providing Software & Solutions to banks in China. Our better focus and more efficient execution have led to the solid quarterly results. We are quite encouraged by the strong demand across our solution lines. We are confident that we will be able to capitalize on the market opportunities and further consolidate our leadership position in the industry," said Mr. Hong Weidong, CEO of Yucheng Technologies.

Business Outlook

For the quarter ending June 30, 2011, Yucheng expects

net revenue (non-GAAP) to be approximately US$14.5 million
net income (non-GAAP) per share of US$0.09.

For the fiscal year ending December 31, 2011,

we now expect software & solutions revenues to grow at 22.5-25.0%, based on the business development trend we have seen in the first quarter.
we are raising our guidance of net revenue (non-GAAP) to be in the range of US$71.0 million to US$73.0 million
net income (non-GAAP) per share to be in the range of US$0.44 to US$0.46.

Liquidity Requirements

Sat, 19 Feb 2011 05:00:00 GMT

We believe that our current cash and anticipated cash flow from operations is sufficient to meet our current cash needs. We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. In the long-term, we intend to rely primarily on cash flow from operations and additional borrowings from banks to meet our anticipated cash needs. If our anticipated cash flow is insufficient to meet our requirements, we may also seek to sell additional equity, debt or equity-linked securities

Comments & Business Outlook

Fri, 18 Feb 2011 05:00:00 GMT

Fourth Quarter Results:

Net revenues (non-GAAP) for the fourth quarter of 2010 were US$21.9 million, an increase of 128.5% year-over-year and 38.4% sequentially. The year-over-year increase was mainly due to the increase of software & solutions revenues.
Net income from continuing operations (non-GAAP)was US$ 3.2 million in the fourth quarter of 2010 or US$0.16 per diluted share. Net income from continuing operations (non-GAAP) in the year-ago period was US($6.1) million or US($0.33) per diluted share. Net income from continuing operations (non-GAAP) in the previous quarter was US$2.3 million or US$0.12 per diluted share.

2010 Full Year:

Net income from continuing operations (non-GAAP) was US$2.1 million in 2010 or US$0.38 per diluted share.
Net income from continuing operations (non-GAAP) in 2009 was US$0.7 million or US$0.10per diluted share.

Guidance

For the quarter ending March 31, 2011, Yucheng expects net revenue (non-GAAP) to be in the range of US$10.5 million to US$10.8 million and net income (non-GAAP) per share to be US$0.00.
For the fiscal year ending December 31, 2011, Yucheng expects net revenue (non-GAAP) to be in the range of US$70.0 million to US$72.0 million
and net income (non-GAAP) per share to be in the range of US$0.43 to US$0.45.

"In the fourth quarter, Yucheng continued to see the positive results from our operational improvement in addition to benefiting from the strong seasonal demand. We believe the strong customers demand for IT solutions will carry well into 2011. We have laid a solid foundation through the restructuring in the past year for future growth, as evidenced by the fact that our market share at our largest customer improved even when its IT software spending was reduced in 2010. We are confident that we will be able to capitalize on the market opportunities and further consolidate our leadership position in the industry," said Mr. Hong Weidong, CEO of Yucheng Technologies."

Comments & Business Outlook

Thu, 11 Nov 2010 05:00:00 GMT

Third Quarter 2010 Financial Highlights

Fully diluted non-GAAP EPS was USD0.11, as compared to USD0.16 in the third quarter of 2009 and USD 0.09 in the second quarter of 2010.
Total net revenues registered USD16.9 M, a 0.7% decrease year-over-year and a 25.6% increase quarter-over-quarter.
Software & Solutions revenues totaled USD14.0 M, an1.2% increase year-over year and a 32.2% increase quarter-over-quarter.

"In the third quarter, Yucheng continued to see the positive results from our operational improvement in addition to benefiting from strong the seasonal demand. We expect the trend to continue into the fourth quarter," said Mr. Hong Weidong, CEO of Yucheng Technologies.

"We have agreed in principle on a transaction to sell the POS business to a team that is composed of the management team of the POS business and investors. The transaction is expected to close before the end of the year. I am very excited about the divesture of the POS business and looking forward to focusing our resources completely on our core business in the 2011," added Mr. Hong.

Business Outlook

Yucheng has continued to see strong demand for its Software & Solutions business during the third quarter of 2010 across all its solution lines, including Channel Solutions, Business Solutions and Management Solutions. We are capitalizing the opportunities on the new foreign banks' entry into the Chinese market as well as the strong demand for more corresponding solutions by those foreign banks that have been in the Chinese market for a number of years and see their business rapidly growing to the next level. Another customer segment that has also been driving the demand for IT solutions is rural credit unions. As their businesses grow, they are in the market for more sophisticated IT solutions such as loan management and potentially the next generation e-banking that will help them further grow their businesses. Our leading loan management solutions continued the rising trend in the market, starting to penetrate into more joint stock banks after their successful streak in the rural credit unions.

We continued to the winning trend in the business development area during the third quarter. The number of RFPs in which we participated during the third quarter of 2010 increased by 100.0% compared with the same period of a year ago, and the number of RFPs that we won increased by 136.4%. The number of RFPs in which we participated for our traditionally strong solutions, including e-banking, loan management, risk management, and business intelligence, increased by 100.0% year-over-year while the winning RFPs increased by a even higher rate indicating the winning ratio is significantly improving.

We are also seeing the results of our initiatives to rationalize our client base and client structure to focus more of our resources on quality clients, including big four banks, joint stock banks, national policy banks, provincial level city commercial banks, and provincial level rural credit unions. We added five major customers in the third quarter, all of which we expect to be major customers in the next few years.

Comments & Business Outlook

Wed, 19 May 2010 04:00:00 GMT

Yucheng has seen strong demand for its Software & Solutions business during the first quarter of 2010 across its solution lines including, Channel Solutions, Business Solutions and Management Solutions. Through the recent internal restructuring, Yucheng has demonstratedits ability to re-solidify its leading position in e-banking, call center, loan management and risk management solutions. Increasing demand from banking customers for more features for the existing software system such as e-banking and loan management solutions, coupled with more international banks are entering China or expanding their presence in China, has led more opportunities for Yucheng's e-banking and call center solutions. Increasing awareness of the risk exposure on loan origination and expanding loan product lines has generated a boom for Yucheng's leading loan management solutions. To further improve the exact risk exposure and in turn improve the capital efficiency, many banks are spending more on business intelligence and risk management solutions as a key IT investment.

"Although our first quarter financial results fell short of management expectation, we have been seeing strong demand for our software solutions business in the first quarter. On the other hand, we continue to do a good job on better controlling our operating expenses. As a result, we are reaffirming our financial guidance for the whole year, with revenues in the range of USD 65.0 million and USD 68.4 million and Non-GAAP EPS range of USD 0.30 and USD 0.36." said Mr. Steve Dai, CFO of Yucheng.

Comments & Business Outlook

Thu, 25 Jun 2009 04:00:00 GMT

Yucheng's key initiative in 2009 is to continue to increase the percentage of revenues from the sale and deployment of Software & Solutions. We have focused our sales and marketing efforts on generating higher demand for key solutions, such as Loan Management, Business Intelligence, and e-Banking, where Yucheng is a market leader. Loan management is critical in the current environment because it supports merit based decision-making and correlates borrower profiles with loan payment capabilities. With the dramatic increase in loans this year and upcoming regulatory changes, business intelligence solutions are increasingly needed to support banks through the aggregation and interpretation of bank-wide data. Many banks are seeking e-banking solutions to lock-in customers through unique features, while lowering the overall cost of customer service. The demand for these key solutions is particularly strong in the previously underserved SMB market, which has been a focus for Yucheng in the past year and allowed the Company to capitalize on both its experiences with large banks and range of existing technologies.

Mr. Weidong Hong, CEO of Yucheng, stated, 'We believe that our customers are continuing to grow and demand is increasing for IT services, so I would like to reiterate our 2009 guidance.

Source: PR Newswire (May 12, 2009)