HollySys Automation Technologies, Ltd. (NASDAQ:HOLI) Q1 2020 Earnings Conference Call - Final Transcript
Nov 13, 2019 • 08:00 pm ET
for the quarters ended September 30, 2019 and 2018 respectively.
The income expenses and effective tax rate were $6.2 million and 17.3% for the first quarter as compared to $5.5 million and 16.3% for the comparable prior year period. The effective tax rate fluctuation was not only due to the different pretax income mix with different tax rates as company's subsidiaries are subject to different tax rates in various jurisdictions. The non-GAAP net income attributable to Hollysys was $29.8 million or $0.49 per diluted share. This represent a 6.1% increase over $28.1 million or $0.46 per share for the comparable prior year period.
On a GAAP basis, net income attributable to Hollysys was $29.7 million or $0.49 per diluted share, representing a increase of 6.4% over $27.9 million or $0.46 per diluted share, reported in comparable prior year period. Contract and backlog highlights. Hollysys achieved $138.6 million of new contracts for the first quarter ended September 30, 2019. The backlog of September 30 2019 was $578.9 million. The detailed breakdown in the new contracts and backlog by segment is as follows. The new contract achieved the first quarter ended September 30, 2019, Industrial Automation new contract $84 million, Rail Transportation $21 million, Mechanical and Electrical Solutions $33.6 million, backlog as of September 30, 2019 Industrial Automation backlog $195 million, Rail Transportation $288.9 million, Mechanical and Electrical solutions $94.6 million.
Cash flow highlights. For the first quarter ended September 30, 2019, the total net cash inflows was $15.3 million. The operating cash flow was $39 million, the invest in cash flow was $8.1 million and mainly consist of 31.9 million of matured time deposits and $4.5 million of proceeds received the disposal of an equity investment, which was partially offset by $27.8 million of time deposits placed with bank. The net cash used in financing activities was $20.3 million and mainly consisted of $20 million repayments of funds payables.
Balance sheet highlights. The total amount of cash and cash equivalents were $340 million, $332.5 million and $276.9 million as of September 30, 2019, June 30, 2019 and September 30, 2018 respectively. For the three months ended September 30, 2019, DSO was 204 days as compared to 170 days for the comparable prior year period and 150 days for the last quarter. The inventory turnover was 56 days as compared to 51 days for the comparable prior year period and 40 days for the last quarter.