Hollsys Automation Technologies INTERNATIONAL, LTD. COMMON (British Virgin Island) - HOLI STOCK NEWS

Hollysys Automation Technologies Ltd. reported its third-quarter and first nine months financial results, showcasing total revenues of $434.7 million, up 16.2% year-over-year. The third quarter alone saw revenues of $109.9 million, a 36.1% increase. Despite revenue growth, non-GAAP net income fell 7.9% to $71.7 million, impacting diluted EPS, which also decreased by 7.8% to $1.18. Operating cash flow was $48.6 million. The Industrial Automation segment led growth, with revenues of $67.5 million, up 97.1%.

Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) will report its financial results for the third quarter of fiscal year 2021 on May 13, 2021, U.S. Eastern Time. A conference call will follow at 9:00 PM ET to discuss these results and the company's business outlook. The Company specializes in automation and control technologies, serving various sectors in China and beyond, including high-speed rail and industrial automation. Investors can register for the call through a provided link, and a recording will be available on Hollysys' website.

Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) reported financial struggles for the six months ending December 31, 2020. Revenue reached $324.8 million, but accounts receivable surged by $84.2 million, reflecting a concerning trend as it constituted 26% of revenue. Operating cash flow fell to $55 million from $109.4 million year-over-year, indicating weakening core business. Despite a 2% backlog increase, new contract signings dropped by nearly 30%. J.P. Morgan downgraded its price target to $15 per share, with the current stock trading at $12.74, suggesting investor caution.

On March 15, 2021, Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) faced legal actions initiated by the Hollysys Committee on Trust Interests against shareholders who made claims about misleading statements. The Company’s response alleged that a recent court order does not equate to a victory for the shareholders, while the Claimant Shareholders accused the Company of ignoring critical facts regarding impending legal outcomes. The Claimant Shareholders also highlighted that the Company's share price has dropped to $13.05, significantly under the $17.10 acquisition proposal, raising concerns about corporate governance and shareholder value.

Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) issued a statement on March 16, 2021, addressing misleading claims made by Ace Lead Profits Limited concerning a lawsuit in the British Virgin Islands. The Company clarified that the court has yet to rule on the legality of the amendments to its Memorandum and Articles of Association. Hollysys has voluntarily agreed to not act on the amendments until a court decision is reached, maintaining the status quo. They are seeking an expedited trial in July 2021 to resolve the matter swiftly for the benefit of shareholders.

The Board of Directors of Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) announced receipt of a revised unsolicited consortium proposal from Shao Baiqing and Ace Lead Profits Limited to acquire all outstanding shares. A legal action against Mr. Shao and Ace Lead was initiated on March 9, 2021, concerning the beneficial ownership of shares held by Ace Lead. The Board stresses that the proposal's information is price-sensitive, advising investors to consider it with caution pending the legal outcome. Further announcements will follow as material information arises.

On March 8, 2021, a preliminary victory was granted to Shao Baiqing and Ace Lead Profits Limited in their lawsuit against Hollysys Automation Technologies Ltd. (HOLI). The court ordered the Company to refrain from using contested amendments to its articles of association that may infringe on shareholder rights. The amendments were adopted shortly after a consortium proposed a cash acquisition of the Company at $17.1 per share, higher than its then-current stock price of $14.21. The Company reported a 17.1% decline in non-GAAP net income for the first half of fiscal 2021.

Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) reported a 10.7% increase in total revenues to $324.8 million for the first half of fiscal 2021. However, non-GAAP net income decreased by 17.1% to $53.0 million, resulting in a non-GAAP diluted EPS of $0.87, down 17.9%. In Q2 alone, revenues rose 14.8% to $195.3 million, while gross margin improved to 37.7%. New contracts totaled $193.6 million with a backlog of $601.3 million. Cash flow from operating activities was $33.4 million.

Hollysys Automation Technologies Ltd. (NASDAQ: HOLI) will report its fiscal year 2021 second quarter financial results on March 4, 2021. The conference call will take place at 8:00 PM ET on the same day, discussing results from the quarter ended December 31, 2020, and providing a business outlook. Hollysys, a leader in automation solutions in China, serves various sectors, including industrial automation and rail transportation. The company emphasizes operational efficiency and safety through its advanced technologies.