Yucheng Technologies Ltd., a leading provider of IT Solutions to the financial services industry in China, today posted its financial results for the fourth quarter and full year ended December 31, 2010.
Total revenues for the fourth quarter of 2010 increased 212.8 percent to $21.9 million.
Gross margin for the fourth quarter of 2010 was 50.6 percent, compared to 27.4 percent in the year-ago period.
Total operating expenses for the fourth quarter of 2010 decreased 14.5 percent to $8.4 million as compared to the fourth quarter the year prior. Income from operations for the fourth quarter of 2010 was $2.7 million, compared to $-7.9 million in the year-ago period.
In the fourth quarter of 2010, the company recorded net income of ($-1.8million), or ($-0.09) per diluted share, compared to ($-6.8 million), or ($-0.36) per diluted share, in the year-ago period.
As of December 31, 2010, Yucheng reported cash and cash equivalents and restricted cash of $24.5 million.
“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,” Hong Weidong, CEO of Yucheng stated in the press release.
Yucheng’s total revenues for 2010 increased 17.4 percent to $61.0 million year-over-year.
The company’s reported gross margin for 2010 at 48.8 percent, compared to 46.0 percent reported in 2009.
Total operating expenses for 2010 decreased 4.1 percent year-over-year to $24.2million. Income from operations for 2010 was $5.5 million, compared to US$ -1.3 million in 2009.
In 2010, Yucheng recorded net income from continued operations of $5.8 million, or US$0.31 per diluted share, compared to $0.5 million, or $0.02 per diluted share, in 2009.
The company’s operating cash flow for the full year 2010 was a net outflow of $4.4 million, which it attributes primarily due to an increase in trade accounts receivables.
For more information visit www.yuchengtech.com