Hollysys(US:HOLI) Prnewswire·2024-03-07 22:00Financial Performance - Total revenues for the first half of fiscal year 2024 were $423.6 million, an increase of 2.1% compared to the prior year period [1] - For the second quarter, total revenues were $223.7 million, a decrease of 8.6% compared to the same period last year [2] - Gross margin for the first half was 31.9%, down from 36.1% in the prior year [1] - The second quarter gross margin was 29.5%, compared to 39.6% in the same quarter last year [2] - Net income attributable to Hollysys for the first half was $45.8 million, a decrease of 34.3% year-over-year [1] - In the second quarter, net income was $14.1 million, a decrease of 70.7% compared to the prior year [2] - Diluted earnings per share for the first half were $0.74, down 33.9% from the previous year [1] - For the second quarter, diluted earnings per share were $0.23, a decrease of 70.5% year-over-year [2] Operational Highlights - The company achieved $495.2 million in new contracts for the first half of fiscal year 2024, with a backlog of $962.2 million as of December 31, 2023 [26] - In the Industrial Automation segment, the company was recognized for its innovation and development capabilities, receiving multiple awards [4] - The company successfully signed contracts in the chemical and petrochemical sector, including a significant project for carbon fiber precursor production [5] - In the smart factory sector, contracts were signed for intelligent manufacturing control platforms for titanium and lithium carbonate production [6][7] - The company maintained its market position in rail transportation automation, contributing to several key projects including high-speed rail upgrades [8] Cash Flow and Balance Sheet - For the first half of fiscal year 2024, net cash provided by operating activities was $88.3 million [1] - The total amount of cash and cash equivalents increased to $747.5 million as of December 31, 2023, from $650.4 million at the end of the previous quarter [31] - Days sales outstanding (DSO) was 146 days for the first half, compared to 144 days in the prior year [31] - Inventory turnover days remained stable at 74 days for the first half [31] Segment Performance - Revenues from the Industrial Automation segment accounted for 59.5% of total revenues in the first half, while Rail Transportation Automation contributed 29.4% [13] - Integrated solutions contracts revenue decreased by 0.6% to $330.2 million for the first half [12] - Service revenue increased by 18.2% to $69.7 million for the first half, indicating growth in this area [12]