VanceInfo Reaffirms Third Quarter and Full Year 2012 Guidance
BEIJING, Oct. 31, 2012
BEIJING, Oct. 31, 2012 /PRNewswire/ -- VanceInfo Technologies Inc. (NYSE:VIT)
("VanceInfo" or the "Company"), an IT service provider and one of the leading
offshore software development companies in China, today reaffirmed previously
issued guidance for the third quarter and full year 2012 in advance of the
extraordinary general meeting of VanceInfo shareholders, which is scheduled to
occur at 9:00 a.m. Beijing time on November 6, 2012, to consider certain
proposals in connection with the proposed merger of VanceInfo and HiSoft
Technology International Limited.
Based on current market and operating conditions and current book orders, the
for the third quarter of 2012:
oNet revenues to be between $95 million and $97 million.
oNon-GAAP diluted EPS(1) ^ to be between $0.18 and $0.20.
for the full year of 2012:
oNet revenues to be between $372 million and $376 million.
oNon-GAAP diluted EPS(1) to be between $0.75 and $0.81.
These estimates are based on current market and operating conditions, are
subject to change, and may be influenced positively or negatively by factors
outside the Company's control, including but not limited to macroeconomic
events in the markets in which the Company operates. See "Safe Harbor
Statement" below for additional information regarding forward-looking
statements. These estimates also do not include any expected or potential
impact from any currently proposed or future merger or acquisition.
Investors should be aware that the above estimates are preliminary, unaudited
and subject to further adjustments as a result of the Company's normal
period-end closing procedures to be completed prior to the Company's upcoming
earnings announcement with respect to its financial results for the quarter
ended September 30, 2012. Further details will be provided in the Company's
upcoming third quarter 2012 earnings announcement which is currently scheduled
for Thursday, November 15, 2012.
VanceInfo Technologies Inc. is an IT service provider and one of the leading
offshore software development companies in China.
The Company ranked number one among Chinese offshore software development
service providers for the North American and European markets as measured by
2011 revenues, according to International Data Corporation (IDC). This marks
the fifth consecutive year that VanceInfo has been ranked number one by IDC in
VanceInfo's comprehensive range of IT services includes R&D Outsourcing
Services, Consulting and Solutions Services, Application Management Services
and Other Solutions & Services. VanceInfo provides these services primarily to
corporations headquartered in Greater China, the United States, Europe and
Japan, targeting high-growth industries such as telecommunications,
technology, financial services, travel and transportation services,
manufacturing, retail and distribution.
For more information about VanceInfo, please visit www.vanceinfo.com.
Safe Harbor Statements
This announcement contains forward-looking statements made under the "safe
harbor" provisions of Section 21E of the Exchange Act. These forward-looking
statements can be identified by terminology such as "may," "will," "expect,"
"anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or
other similar expressions. VanceInfo may also make written or oral
forward-looking statements in its reports filed or furnished with the SEC, in
press releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that are not
historical facts, including statements about VanceInfo's beliefs and
expectations, are forward-looking statements and are subject to change.
Forward-looking statements involve inherent risks and uncertainties. A number
of important factors could cause actual results to differ materially from
those contained, either expressly or impliedly, in any of the forward-looking
statements in this press release. These factors include the risk factors
detailed in VanceInfo's filings with the SEC. All information provided in this
press release is current as of the date of this press release, and VanceInfo
does not undertake any obligation to update any such information, except as
required under applicable law.
About Non-GAAP Financial Measures
To supplement VanceInfo's consolidated financial results presented in
accordance with GAAP, VanceInfo uses the following measures defined as
non-GAAP financial measures by the SEC: income from operations, net income and
diluted EPS excluding share-based compensation expense, amortization of
acquired intangible assets and land use right, change in fair value of
contingent consideration payable for business acquisition, and merger-related
costs. The non-GAAP income from operations, net income and diluted EPS for
prior periods have been reclassified so that the presentations are consistent.
The presentation of these non-GAAP financial measures is not intended to be
considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP.(2)
VanceInfo believes that these non-GAAP financial measures provide meaningful
supplemental information regarding its performance by excluding certain
expenses and expenditures that may not be indicative of its operating
performance. The Company believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing the Company's
performance and when planning and forecasting future periods. A limitation of
using non-GAAP net income and diluted EPS is that these non-GAAP measures
exclude the share-based compensation charges, amortization of acquired
intangible assets and land use right, change in fair value of contingent
consideration payable for business acquisition, and merger-related costs that
have been and will continue to be, for the foreseeable future, a significant
recurring expense in the business. Management compensates for these
limitations by providing specific information regarding the GAAP amounts
excluded from each non-GAAP measure.(2)
IMPORTANT INFORMATION FOR INVESTORS
This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval. The
proposed merger involving VanceInfo and HiSoft Technology International
Limited ("HiSoft") will be submitted to the respective shareholders of
VanceInfo and HiSoft for their consideration.In connection with the proposed
transaction, HiSoft has filed with the Securities and Exchange Commission
("SEC") a registration statement on FormF-4 (Registration File
No.333-183688) that includes a definitive joint proxy statement of VanceInfo
and HiSoft and constitutes a prospectus of HiSoft.VanceInfo and HiSoft may
also plan to file other documents with the SEC regarding the proposed
transaction.The definitive joint proxy statement/prospectus was first mailed
to shareholders and holders of American depositary receipts of VanceInfo and
HiSoft on or about October5, 2012. VANCEINFO AND HISOFT URGE INVESTORS AND
SECURITY HOLDERS TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND
OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN
THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and shareholders may obtain free copies of the definitive joint
proxy statement/prospectus and other documents containing important
information about VanceInfo and HiSoft, once such documents are filed with the
SEC, through the website maintained by the SEC at www.sec.gov.
(1) Non-GAAP diluted EPS excludes share-based compensation expense,
amortization of acquired intangible assets and land use right, change in fair
value of contingent consideration payable for business acquisition, and
merger-related costs. The non-GAAP measures and related reconciliations to
GAAP measures are described in the accompanying section of "About Non-GAAP
Financial Measures" at the end of the press release.
(2) For more information on these non-GAAP financial measures, please see the
tables captioned "Reconciliations of Non-GAAP Financial Measures to Comparable
GAAP Measures" and "Reconciliations of Forward-Looking Guidance for Non-GAAP
Financial Measures to Comparable GAAP Measures" set forth at the end of
VanceInfo's second quarter 2012 earnings announcement dated August 10, 2012.
For further information, please contact:
VanceInfo Technologies Inc.
SOURCE VanceInfo Technologies Inc.
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