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Camelot Information Systems Inc. Announces Unaudited Third Quarter 2013 Financial Results

   Camelot Information Systems Inc. Announces Unaudited Third Quarter 2013
                              Financial Results

PR Newswire

BEIJING, Nov. 25, 2013

BEIJING, Nov. 25, 2013 /PRNewswire/ -- Camelot Information Systems Inc. (NYSE:
CIS), a leading domestic provider of enterprise application services and
financial industry IT services in China ("Camelot" or the "Company"), today
announced unaudited financial results for the third quarter ended September
30, 2013.

Third-Quarter Financial and Operating Highlights:

  oNet revenues were $70.9 million in the third quarter of 2013, as compared
    to $63.0 million in the same period in 2012.
  oNet revenues from enterprise application services (EAS) were $45.8
    million, as compared to $41.9 million in the same period in 2012.
  oNet revenues from financial industry IT services (FIS) were $25.0 million,
    as compared to $21.1 million in the same period in 2012.
  oGross profit was $14.4 million, as compared to $17.2 million in the same
    period in 2012.
  oLoss from operations was $1.9 million, as compared to a loss from
    operations of $31.9 million in the same period in 2012. Adjusted operating
    loss[1] was $1.4 million, as compared to adjusted operating income[1] of
    $5.5 million in the same period in 2012.
  oNet loss attributable to Camelot was $1.7 million, as compared to a net
    loss attributable to Camelot of $31.5 million in the same period in 2012.
    Adjusted net loss attributable to Camelot[1] was $1.2 million, as compared
    to adjusted net income attributable to Camelot[1] of $5.8 million in the
    same period in 2012.

"We achieved solid year-over-year revenue growth in the third quarter of 2013,
and revenues exceeded our guidance due to strength in our EAS business line.
During the remainder of 2013, we expect solid but more moderate performance in
our EAS business line, as we expect the delivery of some contracts to stretch
into next year," commented Mr. Simon Ma, Camelot's Chairman and Chief
Executive Officer. "Looking towards 2014, we expect some near-term challenges
due to shifts in our customer mix due to economic reforms in China. We still
believe that over the long term, the need for greater competitiveness among
Chinese enterprises will increase, which should drive further demand for our
services, which help companies become more efficient and competitive."

Third-Quarter 2013 Financial Results

Net revenues in the third quarter ended September 30, 2013 increased 12.5% to
$70.9 million from $63.0 million in the same period in 2012.

Net Revenues by Service Line (in Thousands, Except Percentage)
Service Line                           Three Months Ended  Three Months Ended
                                       September 30, 2013  September 30, 2012
Enterprise application services (EAS)  $45,829    64.7%    $41,887    66.5%
Financial industry IT services (FIS)   25,041     35.3%    21,115     33.5%
Total net revenues                     $70,870    100.0%   $63,002    100.0%

EAS net revenues increased 9.4% year-over-year to $45.8 million in the
quarter. EAS net revenues amounted to 64.7% of total net revenues in the
quarter. FIS net revenues increased 18.6% year-over-year to $25.0 million. FIS
net revenues accounted for 35.3% of the quarter's total net revenues.

Cost of revenues increased 23.2% to $56.5 million from $45.8 million in the
same period in 2012. Adjusted cost of revenues[1] increased 23.3% to $56.5
million from $45.8 million in the same period in 2012. Adjusted cost of
revenues excludes $16,000 of amortization expense for acquisition-related
intangible assets.

Gross profit decreased 16.2% to $14.4 million from $17.2 million in the same
period in 2012. Adjusted gross profit[1] decreased 16.3% to $14.4 million from
$17.2 million in the same period in 2012. The gross margin was 20.3% in the
quarter, as compared to 27.3% in the same period in 2012. The adjusted gross
margin[1] was 20.3% in the quarter, as compared to 27.4% in the same period in
2012.

Operating expenses were $16.4 million in the quarter, as compared to $49.1
million in the same period in 2012. Operating expenses in the same period of
2012 include charges of $6.6 million for the impairment of intangible assets
and $29.6 million for the impairment of goodwill. Adjusted operating
expenses[1] were $15.9 million, as compared to $11.8 million in the same
period in 2012. Excluding the impairment charges, operating expenses increased
year-over-year due to higher sales and marketing expense from higher revenues,
higher general and administrative expenses from higher headcount, and higher
research and development expense from our initiatives for solution
development. Adjusted operating expenses exclude $197,000 of share-based
compensation expense and $287,000 of amortization expense for
acquisition-related intangible assets.

Operating loss was $1.9 million, as compared to an operating loss of $31.9
million in the same period in 2012. Adjusted operating loss[1] was $1.4
million, as compared to adjusted operating income of $5.5 million in the same
period in 2012.

Net loss attributable to Camelot in the third quarter of 2013 was $1.7
million, as compared to a net loss attributable to Camelot of $31.5 million in
the same period in 2012. Adjusted net loss attributable to Camelot[1] for the
third quarter of 2013 was $1.2 million, as compared to adjusted net income
attributable to Camelot of $5.8 million in the same period in 2012.

Nine-Month 2013 Financial Results

In the first nine months of 2013, net revenues increased 5.9% to $193.0
million from $182.2 million in the first nine months of 2012. Revenues in the
EAS business line were $124.4 million, an increase of 1.7% from $122.4 million
in the same period of 2012. Revenues in the FIS business line were $68.5
million, an increase of 14.6% from $59.8 million in the same period of 2012.
Gross profit was $38.3 million, as compared to $46.1 million in the same
period of 2012. Adjusted gross profit was $38.4 million, as compared to $46.2
million in the same period of 2012. The gross margin was 19.9%, as compared to
25.3% in the same period of 2012. The adjusted gross margin was 19.9%, as
compared to 25.4% in the same period of 2012.

Operating loss was $11.2 million in the first nine months of 2013, as compared
to an operating loss of $30.0 million in the same period of 2012. The
operating margin was negative 5.8%, as compared to negative 16.5% in the same
period of 2012. Adjusted operating loss was $8.7 million, as compared to
operating income of $10.6 million in the same period of 2012. The adjusted
operating margin[1] was negative 4.5%, as compared to positive 5.8% in the
same period of 2012.

Income tax expense was $3.7 million, as compared to $426,000 in the same
period of 2012.

Net loss attributable to Camelot was $14.4 million in the first nine months of
2013, as compared to a net loss of $29.9 million in the same period of 2012,
or a net loss of $0.31 per diluted ADS as compared to a net loss of $0.67 per
ADS in the same period of 2012. Adjusted net loss attributable to Camelot was
$11.9 million, or a loss of $0.26 per ADS in the first nine months of 2013, as
compared to adjusted net income of $10.7 million, or $0.24 per ADS in the same
period of 2012.

Balance Sheet and Cash Flow

As of September 30, 2013, the Company had $59.3 million in cash and cash
equivalents, as compared to $95.5 million in cash, cash equivalents,
short-term investments, and term deposits, as of December 31, 2012. The
decrease was primarily due to a $14.6 million net loss, a $22.7 million
increase in accounts receivable, and a $6.0 million decrease in other
liabilities, offset by a $5.1 million decrease in other assets, during the
first nine months of 2013.

Days' sales outstanding[2] ("DSO") were 216 days in the third quarter of 2013,
an increase of ten days from 206 days in the same period of 2012.

Employees

The Company's headcount increased to 6,306 as of September 30, 2013, which
included 5,559 information technology (IT) professionals, as compared to 6,198
total employees and 5,408 IT professionals at the end of the second quarter.
Of the IT professionals, EAS employee headcount numbered 2,330, and FIS
employee headcount numbered 3,229.

Recent Developments

On January 5, 2012, a shareholder (the "Plaintiff") filed a class-action
lawsuit against Camelot and current and former directors and officers in
United States District Court of the Southern District of New York, alleging
various misstatements and omissions regarding the Company's business practices
and financial results in violation of U.S. federal securities laws (the
"Litigation"). The Company believes that the Litigation is without merit and
has denied and continues to deny each and all of the claims alleged by the
Plaintiff regarding any improper conduct or violation of U.S. federal
securities laws, or any other laws or regulations specified in the Litigation.
However, taking into account the uncertainty and risks inherent in any
litigation, the Company has concluded that further continuation of the
Litigation would be protracted, burdensome and expensive, and that it is
desirable that the Litigation be fully and finally settled. Under advice from
the Company's counsel, the Plaintiff's counsel, the defendants and the
Company's insurance company participated in a mediation session during the
third quarter of 2013 to discuss a possible settlement of the Litigation. The
Company's counsel has provided a draft settlement agreement and an insurance
agreement for management review and comment during the fourth quarter of 2013.

Separately, Camelot and China Minsheng Banking Corp., Ltd. ("CMBC") (Shanghai
Stock Exchange: 600016) entered into a "Comprehensive Strategic Partnership of
Cooperation" (the "Arrangement") during the third quarter of 2013. Under the
Arrangement, CMBC will provide comprehensive financial services, including
financing, collections, account receivable administration, and protection
against bad debts, to the Company, according to the Company's business
requirements and fulfillment criteria.

Conference Call Information

Camelot senior management will host a conference call at 8:00 a.m. (U.S.
Eastern Standard Time) / 5:00 a.m. (U.S. Pacific Standard Time) / 9:00 p.m.
(Beijing / Hong Kong time) on Monday, November 25, 2013 to discuss the
Company's third-quarter 2013 financial results.

The conference call may be accessed by calling:

US Toll free:                          (866) 713-8563
US Toll / International:               (617) 597-5311
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:                      0809090400
Passcode:                              58856649

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

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
[1] measures 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 are for
     the 12 months ended March 31, 2013.

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, amortization expense
for acquisition-related intangible assets, 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 also operates in other
areas of the Asia Pacific region, including Taiwan and Japan. Camelot provides
services to a wide range of industries, including financial services,
resources and energy, manufacturing and automobiles, technology, as well as
telecommunications, 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 Contact:
Camelot Information Systems Inc.            Mr. John Harmon, CFA
Mr. Franklin King, Interim Chief Financial  Tel: +86 (10) 1151 1730 (Beijing)
Officer
Tel: +86 (10) 6441 9980 ext. 8120           E-mail: john.harmon@harmoncorp.com
E-mail: investors@camelotchina.com
Ms. Jojo Guo, Investor Relations Manager
Tel: +1 (646) 371-6533
E-mail: investors@camelotchina.com





- financial tables follow -
CAMELOT INFORMATION SYSTEMS INC.

Condensed Consolidated Balance Sheets (Unaudited)

(U.S. Dollars in Thousands, Except per Share Data)
                                    September30,            December31,

                                    2013                     2012
Assets
Current assets
Cash and cash equivalents           $59,263                  $93,876
Term deposits                       -                        313
Restricted cash                     789                      1,137
Short-term investments              -                        1,284
Billed accounts receivable          46,094                   45,279
Unbilled accounts receivable        130,583                  105,240
Other current assets                17,829                   23,395
Total current assets                254,558                  270,524
Property and equipment, net         4,270                    4,393
Intangible assets                   10,548                   11,949
Long term investment                731                      -
Other long-term assets              2,231                    2,062
Total assets                        272,338                  288,928
Liabilities and equity
Current liabilities
Consideration payable in connection -                        2,992
with business acquisition
Accounts payable                    20,075                   21,347
Accrued expenses and other payables 28,761                   28,665
Other current liabilities           28,344                   29,865
Total current liabilities           77,180                   82,869
Other non-current liabilities       2,268                    2,786
Total liabilities                   79,448                   85,655
Equity ^(a)                         192,890                  203,273
Total liabilities and equity        272,338                  288,928
Note:

(a) As of September 30, 2013, there were 190,926,475 ordinary shares issued
and 185,269,020 shares outstanding. As of December 31, 2012, there were
190,926,475 shares issued and 185,069,020 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              Nine Months
                           Ended September 30,       Ended September 30,
                           2013         2012         2013         2012
Net revenues               $70,870      $63,002      $192,967     $182,211
Cost of revenues^(1)(2)    (56,471)     (45,825)     (154,629)    (136,123)
Gross profit               14,399       17,177       38,338       46,088
Selling and                (3,814)      (3,032)      (10,517)     (11,134)
marketing^(1)(2)
General and                (9,555)      (7,828)      (30,881)     (23,213)
administrative^(1)(2)
Research and development   (2,997)      (1,872)      (8,287)      (5,336)
costs
Changes in fair value of
contingent consideration   –            (111)        –            (208)
for acquisition
Impairment of intangible   –            (6,610)      –            (6,610)
assets
Impairment of goodwill     –            (29,597)     –            (29,597)
Total operating expenses   (16,366)     (49,050)     (49,685)     (76,098)
Government subsidies       41           8            174          8
Loss from operations       (1,926)      (31,865)     (11,173)     (30,002)
Interest expense           (66)         (27)         (114)        (173)
Interest income            79           174          414          733
Loss before provisions for (1,913)      (31,718)     (10,873)     (29,442)
income tax
Income tax expense         158          39           (3,710)      (426)
Net income of an equity    22           –            13           –
investment, net of tax
Net loss                   (1,733)      (31,679)     (14,570)     (29,868)
Noncontrolling interest    80           183          168          (52)
Net loss attributable to
Camelot Information        (1,653)      (31,496)     (14,402)     (29,920)
Systems Inc.^(3)
Earnings per share
Basic-ordinary shares      (0.01)       (0.18)       (0.08)       (0.17)
Diluted-ordinary shares    (0.01)       (0.18)       (0.08)       (0.17)
Earnings per ADS
Basic-ADSs                 (0.04)       (0.71)       (0.31)       (0.67)
Diluted-ADSs               (0.04)       (0.71)       (0.31)       (0.67)
Weighted average shares
outstanding
Basic-ordinary shares      185,269,020  177,621,367  185,201,621  177,621,367
Diluted-ordinary shares    185,269,020  177,621,367  185,201,621  177,621,367
Weighted average ADSs
outstanding
Basic-ADSs                 46,317,255   44,405,342   46,300,405   44,405,342
Diluted--ADSs              46,317,255   44,405,342   46,300,405   44,405,342
Net loss                   (1,733)      (31,679)     (14,570)     (29,868)
Other comprehensive loss,
net of tax:
 Change in cumulative
foreign currency           537          2,342        2,685        693
translation adjustments
Comprehensive loss         (1,196)      (29,337)     (11,885)     (29,175)
Less: comprehensive (loss)
income attributable to the (63)         (165)        (91)         65
noncontrolling interest
Comprehensive loss
attributable to Camelot    (1,133)      (29,172)     (11,794)     (29,240)
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,
                           2013         2012         2013         2012
Cost of revenues           -            $19          $44          $62
Selling and marketing      $22          108          266          1,625
General and administrative 175          374          1,192        911
Total share-based          197          501          1,502        2,598
compensation expenses
(2) Includes the following amounts of amortization expense for
acquisition-related intangible assets for the periods indicated
                           Three Months Ended        Nine Months Ended
                           September 30,             September 30,
                           2013         2012         2013         2012
Cost of revenues           $16          $31          $48          $95
Selling and marketing      214          416          723          1,314
General and administrative 73           71           218          213
Total amortization expense
for acquisition-related    303          518          989          1,622
intangible assets
(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,
                           2013         2012         2013         2012
Net loss attributable to
Camelot Information        ($1,653)     ($31,496)    ($14,402)    ($29,920)
Systems Inc. (U.S. GAAP)
Share-based compensation   197          501          1,502        2,598
Acquisition-related        303          518          989          1,622
intangible amortization
Changes in fair value of   -            111          -            208
contingent consideration
Impairment of intangible   -            6,610        -            6,610
assets
Impairment of goodwill     -            29,597       -            29,597
Total adjusted amounts     500          37,337       2,491        40,635
Adjusted net (loss) income
attributable to Camelot    (1,153)      5,841        (11,911)     10,715
Information 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,
                                     2013      2012       2013       2012
Cash flow from operating activities:
Net Loss                             ($1,733)  ($31,679)  ($14,570)  ($29,868)
Adjustments to reconcile net loss to
net cash used in operating
activities:
 Depreciation of property and     247       236        725        758
equipment
 Amortization of intangible       496       725        1,559      2,233
assets
 Deferred income taxes            (18)      (1,083)    514        (713)
 Impairment of intangible assets  -         6,610      -          6,610
 Impairment of goodwill           -         29,597     -          29,597
 Provision for account receivable 122       (270)      (760)      (1,061)
 Provision for other current      -         -          -          633
assets
 Share-based compensation         197       501        1,502      2,598
 (Gain) loss on disposal of       (7)       14         18         25
property and equipment
 Change in fair value of
contingent consideration for         -         111        -          208
acquisition
 Net income of an equity          (22)      -          (13)       -
investment, net of tax
Changes in operating assets and
liabilities:
 Accounts receivable             (3,532)   1,282      (22,667)   (25,790)
 Other assets                    7,828     (1,745)    5,101      (2,197)
 Accounts payable                816       (3,415)    (1,559)    (1,671)
 Other liabilities               (9,102)   (1,150)    (5,967)    (3,195)
Net cash used in operating           (4,708)   (266)      (36,117)   (21,833)
activities
Cash flow from investing activities:
 Purchase of term deposits        -         (23,197)   (67)       (24,260)
 Maturity of term deposits        -         34,171     387        45,255
 Deposit (withdrawal) of          191       (804)      340        2,924
restricted cash
 Maturity of short term           -         -          1,286      -
investment
 Proceeds from disposal of        35        4          44         8
property and equipment
 Purchase of property and         (286)     (211)      (576)      (522)
equipment
 Purchase of intangible assets    (5)       (1,551)    (5)        (2,573)
and other assets
 Purchase of businesses, net of   -         -          -          (3,500)
cash acquired
 Capital injection into a joint   -         -          (708)      -
venture
Net cash (used in) provided by       (65)      8,412      701        17,332
investing activities
Cash flow from financing activities:
 Proceeds from bank borrowing     1,212     -          4,555      2,881
 Repayment of bank borrowing      (420)     (2,434)    (1,299)    (10,561)
 Payment of contingent            -         -          (3,012)    (5,100)
consideration for an acquisition
Net cash provided by (used in)       792       (2,434)    244        (12,780)
financing activities
Effect of foreign exchange rate      132       532        559        552
changes
Net (decrease) increase in cash and  (3,849)   6,244      (34,613)   (16,729)
cash equivalents
Cash and cash equivalents, beginning 63,112    34,155     93,876     57,128
of period
Cash and cash equivalents, end of    59,263    40,399     59,263     40,399
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, 2013                     September 30, 2012
          GAAP      Adjustments        Adjusted  GAAP      Adjustments     Adjusted
Cost of   $56,471   ($16)       (a)    $56,455   $45,825   ($50)       (a) $45,775
revenues
Gross     14,399    16          (a)    14,415    17,177    50          (a) 17,227
profit
Operating 16,366    (484)       (a)    15,882    49,050    (37,287)    (a) 11,763
expenses
Operating (1,926)   500         (a)    (1,426)   (31,865)  37,337      (a) 5,472
loss
Net loss  (1,653)   500         (a)(d) (1,153)   (31,496)  37,337      (a) 5,841
Net gross 20.3%     0.0%        (b)    20.3%     27.3%     0.1%        (b) 27.4%
margin
Net
operating (2.7%)    0.7%        (a)    (2.0%)    (50.6%)   59.3%       (a) 8.7%
margin
Net       (2.3%)    0.7%        (a)    (1.6%)    (50.0%)   59.3%       (a) 9.3%
margin
Diluted   ($0.01)   $0.00       (c)    ($0.01)   ($0.18)   $0.21       (c) $0.03
EPS
Diluted   ($0.04)   $0.02       (c)    ($0.02)   ($0.71)   $0.84       (c) $0.13
EPADS
          Nine Months Ended                      Nine Months Ended
          September 30, 2013                     September 30, 2012
          GAAP      Adjustments        Adjusted  GAAP      Adjustments     Adjusted
Cost of   $154,629  ($92)       (a)    $154,537  $136,123  ($157)      (a) $135,966
revenues
Gross     38,338    92          (a)    38,430    46,088    157         (a) 46,245
profit
Operating 49,685    (2,399)     (a)    47,286    76,098    (40,478)    (a) 35,620
expenses
Operating (11,173)  2,491       (a)    (8,682)   (30,002)  40,635      (a) 10,633
loss
Net loss  (14,402)  2,491       (a)(d) (11,911)  (29,920)  40,635      (a) 10,715
Net gross 19.9%     0.0%        (b)    19.9%     25.3%     0.1%        (b) 25.4%
margin
Net
operating (5.8%)    1.3%        (a)    (4.5%)    (16.5%)   22.3%       (a) 5.8%
margin
Net       (7.5%)    1.3%        (a)    (6.2%)    (16.4%)   22.3%       (a) 5.9%
margin
Diluted   ($0.08)   $0.02       (c)    ($0.06)   ($0.17)   $0.23       (c) $0.06
EPS
Diluted   ($0.31)   $0.05       (c)    ($0.26)   ($0.67)   $0.91       (c) $0.24
EPADS
Notes:

(a) The adjusted adjustments include share-based compensation expense, amortization
expense for acquisition-related intangible assets, changes in fair value of
contingent consideration and impairment of goodwill and intangible assets, which
are presented in the notes (1) and (2) below "Condensed Consolidated Statements of
Operations (Unaudited)" for the reconciliation process.

(b) Adjustments to exclude amortization expense for acquisition-related intangible
assets and share-based compensation recorded in cost of sales of $16, $50, $92 and
$157 for the three-month periods ended September 30, 2013 and 2012, and the
nine-month periods ended September 30, 2013 and 2012, 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 loss refers to net income attributable to Camelot.





SOURCE Camelot Information Systems Inc.

Website: http://www.camelotchina.com
 
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