CLPS Incorporation - CLPS STOCK NEWS

CLPS Incorporation reported financial results for the second half and full year of fiscal 2024. Despite challenges, the company demonstrated resilience:

• Revenue from customized IT solution services increased by 40.0% to $1.9 million
• Revenue generated outside of mainland China increased by 48.0% to $13.3 million
• Gross profit increased by 7.3% to $17.2 million
• Net loss was $0.9 million, compared to a net loss of $1.2 million in the prior year period

For the full fiscal year 2024:

• Revenue generated outside of mainland China increased by 37.9% to $22.3 million
• Accounts receivable turnover period improved to 111 days
• Net cash provided by operating activities was $8.9 million

The company expects total sales growth of 12% to 17% and non-GAAP net income growth of 15% to 20% for fiscal year 2025.

CLPS Incorporation (Nasdaq: CLPS) has announced that it will release its second half and full year financial results for fiscal 2024 before the market opens on Friday, October 18, 2024. This announcement provides investors and analysts with a specific date to anticipate the company's financial performance disclosure for the latter half of the fiscal year as well as the entire fiscal 2024 period.

CLPS Incorporation (Nasdaq: CLPS) has announced that it has regained compliance with Nasdaq's minimum bid price requirement. The company received a written notice from Nasdaq confirming that the minimum bid price of CLPS's common share was $1.00 or greater for the last 10 consecutive trading days from August 22 through September 5, 2024. As a result, CLPS has fully complied with Nasdaq's Listing Rule 5450(a)(1), and the matter is now closed. This development ensures CLPS's continued listing on the Nasdaq Stock Market, which is important for maintaining investor confidence and market visibility.

CLPS Incorporation (Nasdaq: CLPS) celebrated the grand opening of its wholly-owned Singapore-based learning institution, College of Allied Educators (CAE). This strategic move aims to integrate business with academic education. The ceremony was attended by distinguished leaders and industry experts, including representatives from the Chinese Embassy in Singapore, CLPS executives, and academic partners.

During the event, CAE signed Memorandums of Understanding with several institutions, including Leeds Beckett University, to introduce IT and business management programs. The company plans to develop a state-of-the-art urban campus in Singapore's financial district and establish applied skills facilities and a business mentorship program.

CLPS projects that CAE will contribute approximately 17% to their revenue generated in Singapore, marking a significant milestone in the company's diversification strategy and sustainable development.

CLPS Incorporation (Nasdaq: CLPS) has announced the establishment of Ridik Technology in Dubai, UAE, on July 31, 2024. This strategic move aims to expand CLPS's presence in the Middle East market, capitalizing on the region's rapid digital transformation and growing IT spending. According to Gartner, IT spending in the Middle East is projected to grow by 5.2% in 2024, reaching USD 193.7 billion.

CLPS has appointed Ms. Maddoju Hymavathi as General Manager of Ridik Dubai to lead business development and operational management in the region. The company sees Dubai as a strategic launchpad to extend its services across the Middle East and explore new market opportunities.

CLPS Incorporation announced that Chief Operating Officer Henry Li Li has been promoted to President, effective immediately. Mr. Li, who joined CLPS in 2019, has significantly enhanced the company's operational efficiency and productivity through innovative technologies and optimized processes. He has also expanded market scope and developed strong client relationships, contributing to sustained organic growth. Mr. Li has 20 years of experience in the financial and IT industries, previously holding senior roles at Mastercard and Commonwealth Bank of Australia in China.

Mr. Li's educational background includes a bachelor's degree in Computer Science from Tianjin University and an MSE degree from Fudan University. As President, he aims to leverage the company’s competitive advantages, foster innovation, and expand international reach to deliver exceptional value to stakeholders.

Paul Xiao Feng Yang, Chairman of CLPS, praised Mr. Li's strategic vision and execution abilities, indicating that this promotion aligns with CLPS's long-term strategy to strengthen leadership and enhance management to respond better to market changes and client needs.

CLPS has received a notice from Nasdaq dated June 10, 2024, regarding its non-compliance with the minimum bid price requirement, as its common shares closed below $1.00 for 30 consecutive trading days.

The company has until December 9, 2024, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days. If this is achieved, Nasdaq will confirm compliance in writing. Failing this, CLPS may seek an additional 180-day extension by moving to the Nasdaq Capital Market and possibly implementing a reverse stock split.

This notification does not affect the listing or trading of CLPS shares, and the company is taking steps to address the issue.

CLPS has successfully acquired Shell Infotech through its subsidiary Ridik Pte. , aiming to bolster its global expansion strategy, particularly in Southeast Asia. Established in 2003 and based in Singapore, Shell Infotech is a renowned IT consulting and managed services provider, with a strong presence in banking and insurance sectors across Singapore and Malaysia.

The acquisition will integrate Shell Infotech's workforce into CLPS's operations, with employees relocating to Ridik's Singapore office. This move is projected to increase CLPS's revenue in Southeast Asia by 25% to 30% and bring 27 new clients into its fold. CLPS plans to maintain the Shell Infotech brand to leverage the combined strengths of both firms, enhancing its market competitiveness and expanding its service offerings.

Key executives from CLPS expressed optimism about the acquisition, highlighting its role in advancing the company's growth plans across the Asia-Pacific region, including markets in Malaysia, the Philippines, Japan, India, Vietnam, and Australia.

CLPS celebrates IBM's 60 years in mainframe leadership and highlights its commitment to talent development. Recognizing IBM's contributions since the 1964 launch of the IBM System/360, CLPS underscores the importance of mainframes in digital transformation. CLPS's Talent Creation Program (TCP) offers a comprehensive six-month curriculum combining theoretical knowledge and practical training, focusing on mainframe technologies like JCL, COBOL, and DB2. The program has successfully graduated over 6,000 professionals for global financial institutions. CEO Raymond Lin emphasizes the significance of IBM's Mainframe Skills Council in fostering a skilled workforce and vows to enhance CLPS's training programs further.