Financial Performance - For the fiscal year ended June 30, 2024, the company's revenues were $142.8 million, a decrease from $150.4 million in fiscal 2023 and $152.0 million in fiscal 2022[409] - The company reported a net loss of $1.8 million in fiscal 2024, compared to a net income of $0.2 million in fiscal 2023 and $4.6 million in fiscal 2022[409] - Total revenue decreased by approximately $7.6 million, or 5.0%, to approximately $142.8 million for the fiscal year ended June 30, 2024, from approximately $150.4 million for the fiscal year ended June 30, 2023[444] - Non-GAAP net income for the year ended June 30, 2024, was $1,320,706, compared to $5,026,399 for the previous year[441] - Basic non-GAAP earnings per common share for the year ended June 30, 2024, was $0.03, down from $0.22 for the previous year[441] - Net loss increased by $2.0 million or 1,215.8% to a loss of $1.8 million in fiscal 2024 from a net income of $0.2 million in fiscal 2023[458] Revenue Breakdown - Revenue from IT consulting services decreased by 5.2% or $7.5 million in fiscal 2024, primarily due to decreased demand from existing clients[411] - Revenue from new clients in IT consulting services amounted to approximately $3.3 million in fiscal 2024, up from $2.7 million in fiscal 2023[411] - Revenue from customized IT solution services decreased by $1.5 million, or 30.9%, to $3.1 million for the year ended June 30, 2024, due to decreased demand from existing clients[446] - Revenue from other services increased by $0.3 million, or 17.3%, to $1.8 million for the year ended June 30, 2024[446] - Revenue from academic education services was $1.0 million, primarily due to the acquisition of College of Allied Educators Pte. Ltd[447] - Revenues from the top five clients accounted for 44.9% of total revenues for fiscal 2024, down from 49.1% in fiscal 2023[447] - Revenue generated outside of Mainland China accounted for 15.6% of total revenue for the year ended June 30, 2024, compared to 10.8% in the prior year[447] Assets and Liabilities - Total assets as of June 30, 2024, were $110.0 million, with cash and cash equivalents amounting to $29.1 million[409] - Total liabilities as of June 30, 2024, were $46.1 million[409] - As of June 30, 2024, total shareholders' equity was approximately $62.5 million, reflecting the company's financial stability[481] - As of June 30, 2024, the company had cash and cash equivalents of approximately $29.1 million, current assets of approximately $78.1 million, and current liabilities of approximately $39.8 million[481] Expenses - Cost of revenues decreased by $6.0 million or 5.2% to approximately $109.9 million in fiscal 2024 from approximately $115.9 million in fiscal 2023, representing 76.9% of revenues in fiscal 2024[448] - Gross profit decreased by $1.6 million or 4.5% to approximately $32.9 million in fiscal 2024, with gross margin increasing to 23.1% from 22.9% in fiscal 2023[449] - Selling and marketing expenses increased by $1.3 million or 38.6% to $4.6 million in fiscal 2024, accounting for 3.2% of revenues compared to 2.2% in fiscal 2023[449] - R&D expenses decreased by $1.1 million or 14.2% to $7.2 million in fiscal 2024, representing 5.0% of total revenues[451] - General and administrative expenses increased by $3.5 million or 16.1% to $25.1 million in fiscal 2024, with non-GAAP expenses increasing by $2.9 million or 15.2%[452] Acquisitions and Investments - The company has been actively expanding its service offerings through research and development, targeted hiring, and strategic acquisitions[412] - The company invested $0.15 million for a 30% equity interest in Huanyu and later acquired the remaining 70% for $0.07 million, resulting in a total consideration of $219,272[414][417] - The acquisition of CareerWin involved a total cash consideration of $308,975, with $289,980 allocated to the acquisition of 100% equity interests in CareerWin[424][425] - The company acquired 100% of CAE for $3,244,145, aimed at creating synergies between IT professionals and educational platforms[433] - The acquisition of Shell Infotech was completed for a total cash consideration of $887,836 and $29,595, expanding the company's market share in Southeast Asia[435][436] - The company recognized a loss of $19,682 related to the remeasurement of its previously held equity interest in Huanyu[414] Cash Flow - Net cash provided by operating activities was approximately $8.9 million in fiscal 2024, including a net loss of $1.8 million, adjusted for non-cash items of $5.6 million and positive adjustments for changes in operating assets and liabilities of $5.1 million[486] - Net cash used in investing activities was approximately $12.3 million in fiscal 2024, primarily due to purchases of property and equipment, loans provided to a related party, and purchases of subsidiaries[490] - Net cash provided by financing activities was approximately $10.2 million in fiscal 2024, with bank loans of approximately $44.5 million and repayments of approximately $31.8 million[491] Currency and Taxation - The RMB depreciated by 3.7% in fiscal 2022, 8.3% in fiscal 2023, and 0.2% in fiscal 2024, impacting financial results reported in U.S. dollar terms[640] - The company has not been exposed to material risks due to changes in market interest rates, as its exposure primarily relates to interest income from excess cash held in interest-bearing bank deposits[638] - Valuation allowances are established to reduce deferred tax assets to the expected realizable amount when it is more likely than not that some portion will not be realized[507] - The company recognizes uncertain tax positions as benefits only if they are more likely than not to be sustained in a tax examination[508] Revenue Recognition - Revenue for customized IT solution services is recognized at the point of implementation and acceptance by the customer, with contract assets recorded for differences between billings and revenue recognition[503] - Academic education service revenue is recognized proportionately over a service period of 6 to 15 months, with tuition fees generally paid in advance and recorded as contract liabilities[505] - Revenue from headhunting services is recognized at a point in time when control is transferred to customers, while consulting and administrative services revenue is recognized over time[506] Client and Market Dynamics - The company aims to strengthen its position in the Southeast Asia region for IT services through acquisitions, including the purchase of Shell Infotech Pte. Ltd.[407] - The company aims to enhance its position as a leading IT services provider in the banking industry in China, focusing on sales growth and profitability[413] - The number of clients increased to 300 for the year ended June 30, 2024, compared to the prior year period[447] - Revenue generated outside of Mainland China accounted for 10.8% of total revenue for the year ended June 30, 2023, compared to 9.3% in the prior year[465]
CLPS(CLPS) - 2024 Q4 - Annual Report