Camelot Information Systems Inc. Announces Unaudited Third-Quarter 2012 Financial Results

   Camelot Information Systems Inc. Announces Unaudited Third-Quarter 2012
                              Financial Results

FIS Business-Line Net Revenues Grew 58.6% Year-over-Year

PR Newswire

BEIJING, Dec. 13, 2012

BEIJING, Dec. 13, 2012 /PRNewswire/ -- Camelot Information Systems Inc.
("Camelot" or the "Company") (NYSE: CIS), a leading domestic provider of
enterprise application services and financial industry IT services in China,
today announced unaudited financial results for the third quarter ended
September 30, 2012.

Third-Quarter Financial and Operating Highlights:

  oNet revenues were $63.0 million in the third quarter of 2012, an increase
    of 15.7% from $54.5 million in the third quarter of 2011 and an increase
    of 1.5% from the second quarter
  oNet revenues from enterprise application services (EAS) grew 1.8%
    year-over year, with growth in other sectors offset by lower sales in the
    Resources and Energy sector
  oNet revenues from financial industry IT services (FIS) increased 58.6%
    year-over-year due to continuing solid execution
  oGross profit was $17.2 million, an increase of 59.0% from $10.8 million in
    the year-ago quarter and as compared to $16.2 million in the second
    quarter
  oLoss from operations was $31.9 million, as compared to operating loss of
    $46.3 million in the year ago quarter; Adjusted operating income^1 was
    $5.5 million, as compared to an adjusted operating loss of $0.3 million in
    the year-ago quarter and income of $4.5 million in the second quarter
  oNet loss attributable to Camelot was $31.5 million, as compared to net
    loss of $46.5 million in the year ago quarter; Adjusted net income^1
    attributable to Camelot was $5.8 million, as compared to an adjusted net
    loss of $0.5 million in the year-ago quarter and $3.5 million in the
    second quarter

"Camelot's relatively solid performance in the third quarter of 2012 reflects
the continued stability of our business alongside a soft domestic economy and
the once-a-decade political transition in China. Our FIS business line showed
solid growth, and revenues from our EAS business line were up slightly, with
growth in all sectors except Resources and Energy. However, some delays in
some contract signings in our FIS business line, which led us to miss our
revenue target and consequently, our adjusted net-income target," commented
Mr. Simon Ma, Camelot's Chairman and Chief Executive Officer. "We believe our
business remains fundamentally solid as we continue to strengthen our market
position and market leadership, and we expect to sign the delayed FIS
contracts soon."

Third-Quarter 2012 Financial Results

Net revenues for the third quarter ended September 30, 2012 increased 15.7% to
$63.0 million from $54.5 million in the year-ago quarter.

Net Revenues by Business Line (in thousands, except percentage)

Business Line                         Three Months Ended Three Months Ended
                                      September 30, 2012 September 30, 2011
Enterprise application services (EAS) $41,887   66.5%    $41,145   75.5%
Financial industry IT services(FIS)   21,115    33.5%    13,317    24.5%
Total net revenues                    63,002    100.0%   54,462    100.0%

EAS net revenues increased 1.8% year-over-year to $41.9 million in the quarter
and also increased 1.6% from the prior quarter. The increase in quarterly EAS
revenues was primarily due to strength in most sectors, offset by lower
revenues from resource and energy customers. EAS revenues amounted to 66.5% of
net revenues in the quarter. FIS net revenues increased 58.6% year-over-year
to $21.1 million and increased 1.2% from the prior quarter. FIS net revenues
accounted for 33.5% of the quarter's net revenues.

Cost of revenues increased 5.0% to $45.8 million from $43.7 million in the
year-ago quarter. Adjusted cost of revenues increased 9.5% to $45.8 million
from $41.8 million in the year-ago quarter. Adjusted cost of revenues excludes
$19,000 of share-based compensation expense and $31,000 of acquisition-related
intangible expense.

Gross profit increased 59.0% to $17.2 million from $10.8 million in the
year-ago quarter.Adjusted gross profit increased 36.2% to $17.2 million from
$12.6 million in the year-ago quarter.The gross margin was 27.3% in the
quarter, as compared to 19.8% in the year-ago quarter.The adjusted gross
margin was 27.3%, as compared to 23.2% in the year-ago quarter, due to an
improvement in utilization of the IT team.

Operating expenses were $49.1 million in the quarter, as compared to $57.2
million in the year-ago quarter. Adjusted operating expenses were $11.8
million, representing a 9.7% decrease from $13.0 million in the year-ago
quarter. Adjusted operating expenses declined year over year due to lower
sales and marketing and general and administrative expenses.Adjusted
operating expenses exclude $29.6 million of impairment of goodwill, $6.6
million of impairment of intangible assets, $482,000 of share-based
compensation expense and $487,000 of acquisition-related intangible expense.

Operating loss was $31.9 million, as compared to an operating loss of $46.3
million in the year-ago quarter. Adjusted operating income was $5.5 million,
as compared to an adjusted operating loss of $0.3 million in the year-ago
quarter.

Net loss attributable to Camelot for the third quarter of 2012 was $31.5
million, as compared to a net loss of $46.5 million in the year-ago
quarter.Adjusted net income attributable to Camelot for the third quarter of
2012 was $5.8 million, as compared to an adjusted net loss of $0.5 million in
the year-ago quarter.

Nine-Month 2012 Financial Results

In the first nine months of 2012, net revenues increased 8.8% to $182.2
million from $167.4 million in the first nine months of 2011.Revenues in the
EAS business line in the first nine months were $122.4 million, an increase of
2.6% from $119.3 million in the year-ago period.Revenues in the FIS business
line were $59.8 million in the first nine months, an increase of 24.2% from
$48.2 million the year-ago period.Gross profit was $46.1 million in the
nine-month period, as compared to $43.7 million in the year-ago period.The
gross margin was 25.3% in the first nine months, as compared to 26.1% in the
year-ago period. Adjusted gross profit was $46.2 million in the first nine
months, as compared to $46.5 million in the year-ago period.The adjusted
gross margin was 25.4% in the first nine months, as compared to 27.8% in the
year-ago period.

Operating loss was $30.0 million in the first nine months, as compared to an
operating loss of $39.9 million in the year-ago period. Adjusted operating
income was $10.6 million in the first nine months, as compared to $14.0
million in the year-ago period.The adjusted operating margin was 5.8% in the
first nine months, as compared to 8.4% in the year-ago period.

Net loss attributable to Camelot was $29.9 million in the first nine months of
2012, as compared to a net loss of $41.3 million in the year-ago period, or a
loss of $0.67 per diluted ADS as compared to a loss of $0.92 in the year-ago
period.Adjusted net income attributable to Camelot was $10.7 million, or
$0.24 per ADS, in the first nine months, as compared to $12.6 million, or
$0.24 per ADS, in the year-ago period.

Balance Sheet and Cash Flow

As of September 30, 2012, the Company had $66.9 million in cash, cash
equivalents, term deposits, and short-term investments, as compared to $102.4
million in cash, cash equivalents and term deposits as of December 31, 2011.
The decrease was mainly due to a $29.9 million net loss, a $25.8 million
increase in accounts receivable, $10.6 million in repayment of bank borrowing,
offset by $29.6 million of impairment of goodwill, and $6.6 million of
impairment of intangible assets in the first nine months of 2012.

In the third quarter of 2012, the Company did not repurchase any shares.

Days' sales outstanding^2 ("DSO") were 206 days for the third quarter of 2012,
roughly flat with 205 days in the prior quarter.

Employees

The Company's headcount increased to 5,966 as of September 30, 2012, which
included 5,230 information technology (IT) professionals, versus 5,707 at the
end of the second quarter. Of the IT professionals, EAS employee headcount was
2,249, and FIS employee headcount was 2,981.

Business Outlook

Camelot remains cautious about the outlook for 2013 as the Company anticipates
certain uncertainties and that the slower customer activities in the third
quarter may continue into the fourth quarter and beyond.

In addition, the Company has revised its contracts with its subsidiaries,
including the offering of a performance bond to prior Tansun shareholders to
smooth the negotiation process, as well as changing the ownership structure of
Dimension.

Fourth Quarter of 2012

Camelot expects net revenues in the fourth quarter of 2012 of approximately
$70 million, representing a 17.3% increase from the fourth quarter of 2011.

In addition, Camelot expects an adjusted net loss attributable to Camelot of
approximately $0.2 million in the fourth quarter of 2012.

Full-Year 2012

For full-year 2012, Camelot now expects net revenues of approximately $252
million, representing an 11.0% increase from the prior year.

Camelot also continues to expect full-year 2012 adjusted net income
attributable to Camelot of approximately $10.5 million, representing a 31.4%
decrease from the prior year.

Conference-Call Information

Camelot senior management will host a conference call at 8:00 p.m. (U.S.
Eastern Standard Time) / 5:00 p.m. (U.S. Pacific Standard Time) on Thursday,
December 13 / 9:00 a.m. on Friday, December 14 (Beijing / Hong Kong time) to
discuss the Company's third-quarter 2012 financial results.

The conference call may be accessed by calling:

US Toll free:                          (800) 901-5226
US Toll / International:               (617) 786-4513
Hong Kong toll free:                   800.96.3844
HK Toll:                               852.3002.1672
UK toll free:                          08082347616
UK toll:                               44.207.365.8426
South China toll free / China Telecom: 10 800 130 1713
North China toll free / China Netcom:  10 800 713 1756
China toll:                            86 4008811630
Taiwan toll free:                      00801148420
Passcode:                              82114061

Please dial in approximately 10 minutes before the scheduled time of the call.

A replay of the conference call may be accessed by phone at the following
numbers until 11:59 p.m. EST, December 21, 2012:

US Toll free:            (888) 286-8010
US Toll / International: (617) 801-6888
Passcode:                96898830

A live webcast of the conference call and recording of the conference call
will be available on the investor relations page of Camelot's website at
www.camelotchina.com.

    For more information about the adjusted (i.e. non-GAAP) financial measures
[1] contained in this press release, please see "Use of Non-GAAP Financial
    Measures" below.
    Calculated by dividing average accounts receivable, net of deferred
[2] revenue, by rolling gross revenues before business tax and related
    surcharges, and multiplying by 360 days. Rolling gross revenues is for the
    12 months ended September 30, 2012.

USE OF NON-GAAP FINANCIAL MEASURES

To supplement the unaudited consolidated financial statements presented in
accordance with U.S. GAAP, Camelot uses the non-GAAP ("adjusted") financial
measures of gross profit and margin, operating expenses, operating income and
margin, net income attributable to Camelot Information Systems Inc. and
margin, and diluted earnings per share and diluted earnings per ADS, which are
adjusted from results based on U.S. GAAP to exclude impairment of intangible
assets, impairment of goodwill, share-based compensation, acquisition-related
intangible amortization, and changes in fair value of contingent
consideration. The non-GAAP financial measures are provided as additional
information to help our investors compare business trends among different
reporting periods on a consistent basis and to enhance investors' overall
understanding of our current financial performance and prospects for the
future.The non-GAAP financial measures should be considered in addition to
results prepared in accordance with U.S. GAAP, but should not be considered a
substitute for or superior to U.S. GAAP results. In addition, our calculation
of the non-GAAP financial measures may differ from the calculations used by
other companies, and therefore comparability may be limited.

STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION

The unaudited financial information set forth above is subject to adjustments
that may be identified when audit work is performed on the Company's year-end
financial statements, which could result in significant differences from this
unaudited financial information.

ABOUT CAMELOT INFORMATION SYSTEMS INC.

Camelot is a leading domestic provider of enterprise application services and
financial industry information technology ("IT") services in China, focusing
on the high end of the IT value chain. The Company is the largest domestic
provider of SAP-based Enterprise Resource Planning services in China as
measured by 2010 revenue and by the number of SAP consultants as of December
31, 2010. Camelot also ranked as number-one in the banking testing market in
2010, according to IDC. Camelot also operates in other areas of the Asia
Pacific region, including Taiwan and Japan. The Company provides services to a
wide range of industries, including financial services, resources and energy,
manufacturing and automobile, technology, as well as telecommunication, media
and education.

SAFE HARBOR

This press release contains statements that may constitute "forward-looking"
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks and uncertainties
that could cause actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by these forward-looking statements. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following: the
Company's growth strategies, the Company's ability to attract and retain
skilled professionals, the market of IT services in China, the wages of IT
professionals, the Company's ability to serve, retain, and attract customers.
Further information regarding these and other risks is included in Camelot's
filings with the U.S. Securities and Exchange Commission, including its annual
report on Form 20-F. Camelot does not undertake any obligation to update any
forward-looking statement as a result of new information, future events or
otherwise, except as required under applicable law.



Company Contacts:                         Investor Relations Contacts:
Camelot Information Systems Inc.          CCG Investor Relations
Mr. Franklin King, Interim Chief          Mr. Crocker Coulson, President
Financial Officer
Tel: +86 (10) 8201 9008                   Tel: +1 (646) 213-1915
E-mail: investors@camelotchina.com        E-mail: crocker.coulson@ccgir.com
Ms. Jojo Guo, Investor Relations Manager  Mr. John Harmon, CFA, Sr. Acct. Mgr.
Tel: +1 (646) 371-6533                    Tel: +86 (10) 8573 1014 (Beijing)
E-mail: investors@camelotchina.com       E-mail: john.harmon@ccgir.com



-financial tables follow -



CAMELOT INFORMATION SYSTEMS INC.
Condensed Consolidated Balance Sheets (Unaudited)
(U.S. Dollars in Thousands, Except per Share Data)
                                            September 30,     December 31,
                                            2012              2011
Assets
Current assets
Cash and cash equivalents                   $40,399           $57,128
Term deposits                               24,020            45,318
Restricted cash                             1,734             4,626
Short-term investments                      2,514             -
Billed accounts receivable                  46,401            47,834
Unbilled accounts receivable                115,781           87,212
Other current assets                        20,888            19,659
Total current assets                        251,737           261,777
Property and equipment, net                 4,450             4,673
Goodwill and other intangible assets        12,495            46,248
Other long-term assets                      2,427             2,698
Total assets                                271,109           315,396
Liabilities and equity
Current liabilities
Consideration payable in connection with    -                 5,132
business acquisition
Contingent consideration in relation to     3,030             -
acquisition
Other current liabilities                   58,486            71,099
Total current liabilities                   61,516            76,231
Contingent consideration in relation to     -                 2,822
acquisition
Other non-current liabilities               2,997             4,255
Total liabilities                           64,513            83,308
Equity ^(a)                                 206,596           232,088
Total liabilities and equity                $271,109          $315,396
Note:
(a) As of September 30, 2012, there were 182,762,475 ordinary shares issued
and 177,621,367 shares outstanding.



CAMELOT INFORMATION SYSTEMS INC.
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(U.S. Dollars in Thousands, Except per Share Data)
                               Three Months Ended      Nine Months Ended
                               September 30,           September 30,
                               2012        2011        2012        2011
Net revenues                   $63,002     $54,462     $182,211    $167,430
Cost of revenues^(1)(2)        (45,825)    (43,662)    (136,123)   (123,733)
Gross profit                   17,177      10,800      46,088      43,697
Selling and marketing^(1)(2)   (3,032)     (6,704)     (11,134)    (15,944)
General and                    (7,828)     (18,718)    (23,213)    (32,853)
administrative^(1)(2)
Research and development costs (1,872)     (1,461)     (5,336)     (3,608)
Changes in fair value of
contingent
 consideration for           (111)       (317)       (208)       (1,227)
acquisition
Impairment of intangible       (6,610)     (8,552)     (6,610)     (8,552)
assets
Impairment of goodwill         (29,597)    (21,457)    (29,597)    (21,457)
Total operating expense        (49,050)    (57,209)    (76,098)    (83,641)
Government subsidies           8           62          8           66
Loss from operations           (31,865)    (46,347)    (30,002)    (39,878)
Interest expenses              (27)        (251)       (173)       (746)
Interest income                174         257         733         718
Loss before provisions for     (31,718)    (46,341)    (29,442)    (39,906)
income tax
Income tax benefit(expense)    39          (236)       (426)       (1,492)
Net Loss                       (31,679)    (46,577)    (29,868)    (41,398)
Noncontrolling interest        183         74          (52)        113
Net Loss attributable to
Camelot Information Systems    ($31,496)   ($46,503)   ($29,920)   ($41,285)
Inc.^(3)
Earnings per share
Basic-ordinary shares          ($0.18)     ($0.26)     ($0.17)     ($0.23)
Diluted-ordinary shares        ($0.18)     ($0.26)     ($0.17)     ($0.23)
Earnings per ADS
Basic-ADSs                     ($0.71)     ($1.05)     ($0.67)     ($0.92)
Diluted-ADSs                   ($0.71)     ($1.05)     ($0.67)     ($0.92)
Weighted average shares
outstanding
Basic-ordinary shares          177,621,367 177,600,079 177,621,367 180,272,281
Diluted-ordinary shares        177,621,367 177,600,079 177,621,367 180,272,281
Weighted average ADSs
outstanding
Basic-ADSs                     44,405,342  44,400,020  44,405,342  45,068,070
Diluted-ADSs                   44,405,342  44,400,020  44,405,342  45,068,070
Net Loss                       (31,679)    (46,577)    (29,868)    (41,398)
Other comprehensive income,
net of tax:
 Change in cumulative
foreign currency translation   2,342       1,874       693         5,696
adjustments
Comprehensive loss             ($29,337)   ($44,703)   ($29,175)   ($35,702)
Less: comprehensive
income(loss) attributable to   (165)       (101)       65          (135)
the noncontrolling interest
Comprehensive loss
attributable to Camelot        ($29,172)   ($44,602)   ($29,240)   ($35,567)
Information Systems Inc.

(1) Includes the following amounts of share-based compensation expenses for
the periods indicated

                                        Three Months Ended Nine Months Ended
                                        September 30       September 30
                                        2012    2011       2012     2011
Cost of revenues                        $19     $1,379     $62      $1,435
Selling and marketing                   108     3,463      1,625    6,603
General and administrative              374     9,509      911      10,317
Total share-based compensation expenses $501    $14,351    $2,598   $18,355

(2) Includes the following amounts of amortization expense related to
intangible assets acquired for business combination for the periods indicated

                                          Three Months Ended Nine Months Ended
                                          September 30       September 30
                                          2012     2011      2012     2011
Cost of revenues                          $31      $467      $95      $1,383
Selling and marketing                     416      809       1,314    2,686
General and administrative                71       70        213      207
Total acquisition-related intangible      $518     $1,346    $1,622   $4,276
amortization expenses

(3) The following table sets forth the reconciliation of our adjusted net loss
attributable to Camelot Information Systems Inc. to the U.S. GAAP net loss
attributable to Camelot Information Systems Inc.:

                                       Three Months Ended  Nine Months Ended
                                       September 30        September 30
                                       2012      2011      2012      2011
Net loss attributable to Camelot
Information Systems Inc.               ($31,496) ($46,503) ($29,920) ($41,285)
(U.S. GAAP)
Share-based compensation               501       14,351    2,598     18,355
Acquisition-related intangible         518       1,346     1,622     4,276
amortization
Changes in fair value of contingent    111       317       208       1,227
consideration
Impairment of intangible assets        6,610     8,552     6,610     8,552
Impairment of goodwill                 29,597    21,457    29,597    21,457
Total adjusted amounts                 37,337    46,023    40,635    53,867
Adjusted net income (loss)
attributable to Camelot Information    $5,841    ($480)    $10,715   $12,582
Systems Inc.



CAMELOT INFORMATION SYSTEMS INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(U.S. Dollars in Thousands)
                                       Three-Month Periods Nine-Month Periods
                                       Ended September 30, Ended September 30,
                                       2012      2011      2012      2011
Cash flow from operating activities:
Net loss                             ($31,679) ($46,577) ($29,868) ($41,398)
Adjustments to reconcile net loss to
net cash provided by(used in)
operating activities:
 Depreciation of property and       236       266       758       818
equipment
 Amortization of intangible assets  725       1,396     2,233     4,422
 Deferred income taxes              (1,083)   (1,718)   (713)     (2,126)
 Impairment of intangible assets    6,610     8,552     6,610     8,552
 Impairment of goodwill             29,597    21,457    29,597    21,457
 Provision for account receivable   (270)     2,717     (1,061)   2,717
 Provision for other current assets -         -         633       1,231
 Share-based compensation           501       14,351    2,598     18,355
 Gains on disposal of property and  14        2         25        9
equipment
 Change in fair value of contingent 111       317       208       1,227
consideration for acquisition
Changes in operating assets and
liabilities:
 Accounts receivable               1,282     (12,022)  (25,790)  (32,236)
 Other assets                      (1,745)   1,140     (2,197)   (1,464)
 Accounts payable                  (3,415)   (2,095)   (1,671)   (2,084)
 Other liabilities                 (1,150)   4,622     (3,195)   2,079
Net cash used in operating activities  (266)     (7,592)   (21,833)  (18,441)
Cash flow from investing activities:
 Purchase of term deposits          (23,197)  -         (24,260)  -
 Maturity of term deposits          34,171    (34,403)  45,255    (34,443)
 Restricted cash                    (804)     915       2,924     (5,260)
 Proceeds from disposal of property 4         -         8         18
and equipment
 Purchase of property and equipment (211)     (146)     (522)     (664)
 Purchase of intangible assets and  (1,551)   (78)      (2,573)   (78)
other asset
 Purchase of businesses, net of     -         -         (3,500)   (11,430)
cash acquired
Net cash provided (used in) by         8,412     (33,712)  17,332    (51,857)
investing activities
Cash flow from financing activities:
 Proceeds from bank borrowing       -         165       2,881     7,832
 Repayment of bank borrowing        (2,434)   (318)     (10,561)  (3,758)
 Repurchase of ordinary shares      -         (11,434)  -         (14,415)
 Payment of professional fee        -         -         -         (964)
related to initial public offering
 Payment of reimbursable issuance   -         (223)     -         275
cost related to follow-on offering
 Payment of contingent
consideration and
 deferred consideration for      -         (2,048)   (5,100)   (6,773)
business acquisitions
 Proceeds from stock option         -         91        -         1,294
exercises
Net cash used in financing activities  (2,434)   (13,767)  (12,780)  (16,509)
Effect of foreign exchange rate        532       126       552       738
changes
Net increase (decrease) in cash and   6,244     (54,945)  (16,729)  (86,069)
cash equivalents
Cash and cash equivalents, beginning  34,155    109,232   57,128    140,356
of period
Cash and cash equivalents, end of     $40,399   $54,287   $40,399   $54,287
period



CAMELOT INFORMATION SYSTEMS INC.
Reconciliations of Adjusted Financial Measures to Comparable GAAP Measures
(Unaudited)
(US Dollars in Thousands, Except per Share Data and Percentage)
             Three Months Ended                   Three Months Ended
             September 30, 2012                   September 30, 2011
             GAAP     Adjustments        Adjusted GAAP     Adjustments     Adjusted
Cost of      $45,825  ($50)       (a)    $45,775  $43,662  ($1,846)    (a) $41,816
revenues
Gross profit 17,177   50          (a)    17,227   10,800   1,846       (a) 12,646
Operating    49,050   (37,287)    (a)    11,763   57,209   (44,177)    (a) 13,032
expenses
Operating    (31,865) 37,337      (a)    5,472    (46,347) 46,023      (a) (324)
income(loss)
Net          (31,496) 37,337      (a)(d) 5,841    (46,503) 46,023      (a) (480)
income(loss)
Net gross    27.3%    0.1%        (b)    27.4%    19.8%    3.4%        (b) 23.2%
margin
Net
operating    (50.6%)  59.3%       (a)    8.7%     (85.1%)  84.5%       (a) (0.6%)
margin
Net margin   (50.0%)  59.3%       (a)    9.3%     (85.4%)  84.5%       (a) (0.9%)
Diluted EPS  ($0.18)  $0.21       (c)    $0.03    ($0.26)  $0.26       (c) ($0.003)
Diluted      ($0.71)  $0.84       (c)    $0.13    ($1.05)  $1.04       (c) ($0.01)
EPADS



             Nine Months Ended                    Nine Months Ended
             September 30, 2012                   September 30, 2011
             GAAP     Adjustments        Adjusted GAAP     Adjustments     Adjusted
Cost of      $136,123 ($157)      (a)    $135,966 $123,733 ($2,818)    (a) $120,915
revenues
Gross profit 46,088   157         (a)    46,245   43,697   2,818       (a) 46,515
Operating    76,098   (40,478)    (a)    35,620   83,641   (51,049)    (a) 32,592
expenses
Operating    (30,002) 40,635      (a)    10,633   (39,878) 53,867      (a) 13,989
income(loss)
Net          (29,920) 40,635      (a)(d) 10,715   (41,285) 53,867      (d) 12,582
income(loss)
Net gross    25.3%    0.1%        (b)    25.4%    26.1%    1.7%        (b) 27.8%
margin
Net
operating    (16.5%)  22.3%       (a)    5.8%     (23.8%)  32.2%       (a) 8.4%
margin
Net margin   (16.4%)  22.3%       (a)    5.9%     (24.7%)  32.2%       (a) 7.5%
Diluted EPS  ($0.17)  $0.23       (c)    $0.06    ($0.23)  $0.29       (c) $0.06
Diluted      ($0.67)  $0.91       (c)    $0.24    ($0.92)  $1.16       (c) $0.24
EPADS

Notes:

(a) The non-GAAP adjustments include share-based compensation expenses,
amortization expense related to intangible assets acquired for business
acquisition, changes in fair value of contingent consideration and impairment
of goodwill and intangible assets, where were presented in the notes (1) and
(2) below Condensed Consolidated Statements of Operations (Unaudited) for the
reconciliation process

(b) Adjustments to exclude acquisition-related intangible asset amortization
expense and share-based compensation recorded in cost of sales of $50, $1,846,
$157 and $2,818 for the three-month periods ended September 30, 2012 and 2011,
and the nine-month periods ended September 30, 2012 and 2011, respectively.

(c) Adjusted diluted EPS is computed by dividing adjusted net income
attributable to Camelot Information Systems Inc. by the weighted average
number of diluted ordinary shares outstanding used in computing the GAAP
diluted EPS for the respective periods.

(d) Net income refers to net income attributable to Camelot.



SOURCE Camelot Information Systems Inc.

Website: http://www.camelotchina.com
 
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