HollySys Automation Technologies, Ltd. (NASDAQ:HOLI) Q4 2019 Earnings Conference Call - Final Transcript

Aug 14, 2019 • 09:00 am ET


HollySys Automation Technologies, Ltd. (NASDAQ:HOLI) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Hollysys Automation Technologies Earnings Conference Call for Fiscal Year 2019 and the Fourth Quarter Ended June 30, 2019. [Operator Instructions]

I would now like to hand the conference over to Mr. Arden Xia, the Investor Relations Director of Hollysys Automation Technologies. Thank you, please go ahead Mr. Xia.

Arden Xia

Hello, everyone, and thank you for joining us. Today, our speakers will be Mr. Baiqing Shao, CEO of Hollysys Automation Technologies; Mr. Steven Wang, CFO of Hollysys Automation Technologies; and myself the IR Director of Hollysys.

On today's call, Mr. Shao will provide a general overview of our business, including some highlights for the fiscal year 2019 and the fourth quarter. Mr. Steven Wang will discuss our performance from financial perspective, and we will answer questions afterwards.

Before getting started, I would like to remind everyone that this conference call may contain forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Forward-looking statements are the statements that are not historical facts, including statements relating to the expected growth of Hollysys' future product introductions, the mix of products in future periods and future operating results. Such forward-looking statements based upon the current beliefs and expectations of Hollysys' management are subject to risks and uncertainties, which could cause actual results differ from the forward-looking statements.

The following factors, among others could cause actual results differ from those set forth in these statements: business conditions in China and in Southeast Asia; continued compliance with government regulations; legislation or regulatory environments; requirements or changes adversely affecting the business in which Hollysys is engaged; cessation or changes in government incentive programs; potential trade barriers affecting international expansion; fluctuations in customer demand; management of rapid growth and transition to new markets; intensity of competition from or introduction of new and superior products by other providers of automation and control systems technology; timing, approval and market acceptance of new product introductions; general economic conditions, geopolitical events and regulatory changes; as well as other relevant risks detailed in Hollysys' filings with Securities and Exchange Commission.

The information set forth herein should be read in light of such risks. Hollysys does not assume any obligation to update the information discussed in this conference call or in its filings.

Please note that all amounts noted in this conference call will be in US dollars, unless otherwise noted.

And now I'd like to turn the call to Mr. Baiqing Shao. Please go ahead, Mr. Shao.

Baiqing Shao

Thank you, Arden. Greetings, everyone. I would like to discuss some key events during this quarter.

IA business finished the fiscal year with revenue and contract at $233.8 million and $291.3 million, achieving 4.0% and 2.5% year-over-year growth respectively.

For the quarter, revenue and new contract were $66.6 million and $83.9 million, representing 4.0% and 0.9% year-over-year growth respectively. We continued our effort in market penetration and addressing the demand from current customer base. Within high-end coal fire market, we signed contracts to