Hollysys Automation Technologies Reports Unaudited Financial Results for the Third Quarter and the First Nine Months Ended March 31, 2024

Financial Performance Highlights - Total revenues for the first nine months of fiscal year 2024 were $597.1 million, an increase of 2.5% compared to the prior year period [1] - Gross margin was 31.0%, down from 33.4% in the prior year period, while non-GAAP gross margin was 31.2%, compared to 33.6% [1] - Net income attributable to Hollysys was $49.7 million, a decrease of 38.8% year-over-year [1] - Diluted earnings per share were $0.80, a decrease of 38.9% compared to the prior year period [1] Third Quarter Financial Highlights - Total revenues for the third quarter were $173.5 million, an increase of 3.5% compared to the same period last year [2] - Gross margin improved to 28.9%, up from 26.8% in the prior year, with non-GAAP gross margin at 29.1% [2][9] - Net income attributable to Hollysys was $3.9 million, a decrease of 66.2% year-over-year [2] - Diluted earnings per share were $0.06, down 68.4% from the prior year [2] Operational Achievements - Hollysys was recognized as one of the Top 50 Brands in China's Automation and Digitalization Industry for 2024 [4] - The company received AAA-level rating for integrated implementation in intelligent manufacturing system solution providers [4] - Hollysys secured national high-tech enterprise accreditation for the sixth consecutive time, demonstrating its innovation capabilities [4] Segment Performance - In the Industrial Automation segment, revenues were $117.4 million, accounting for 67.6% of total revenues for the third quarter [11] - Rail Transportation segment revenues were $40.0 million, representing 23.1% of total revenues [11] - Mechanical and Electrical Solutions segment revenues were $16.1 million, making up 9.3% of total revenues [11] Cash Flow and Balance Sheet - Net cash used in operating activities for the third quarter was $37.4 million [19] - As of March 31, 2024, total cash and cash equivalents were $697.9 million [20] - Days sales outstanding (DSO) increased to 183 days from 176 days in the prior year [20] Contracts and Backlog - Hollysys achieved $240.4 million in new contracts for the third quarter, with a backlog of $992.2 million as of March 31, 2024 [16][18]