Benzinga | Oct 15, 2021 10:08AM EDT

CLPS Clocks 45% Revenue Growth In 2H, Issues Optimistic FY22 Outlook

* Information technology consulting and solutions service provider CLPS Inc (NASDAQ:CLPS) reported second-half FY21 revenue growth of 44.6% year-on-year to $67.7 million.

* Revenue by Service: Revenue from IT consulting services rose 43.2% Y/Y to $65.2 million, and customized IT solution services increased 81.0% to $2.1 million.

* Revenue From Operational Areas: Revenue from the banking area increased 36.3% to $31.2 million, the e-Commerce area grew by 101.2% Y/Y to $11.5 million, the wealth management area increased by 40.1% to $13.8 million, and the automotive area expanded by 204.5% to $5.0 million.

* Margin: Gross profit increased by 37.8% Y/Y to $21.7 million. The non-GAAP operating margin expanded 270 bps to 10.4%.

* Non-GAAP net income increased by 59.4% Y/Y to $5.6 million, and the Non-GAAP EPS was $0.29.

* CLPS held $28.9 million in cash and equivalents. It generated $2.6 million in operating cash flow for the twelve months ended June 30.

* "Going forward, we will pursue more IT consulting and solution services investments that we can synergize into our core business and develop innovative products and services," said CFO Rui Yang.

* Outlook: CLPS sees FY22 sales growth of 30% - 35% and non-GAAP net income growth of 32% - 37%.

* Price Action: CLPS shares traded higher by 0.16% at $3.155 on the last check Friday.