Yucheng Technologies Reports Fourth Quarter and Fiscal Year 2009 Financial Results
Press Release Source: Yucheng Technologies Limited On Friday January 29, 2010, 6:00 am EST
BEIJING, Jan. 29 /PRNewswire-Asia-FirstCall/ -- Yucheng Technologies Limited (Nasdaq: YTEC), a leading provider of IT solutions to China's banking industry, today announced financial results for the fourth quarter and the fiscal year 2009.
"2009 has been a time of great achievements and challenges for Yucheng. We have solidified our foundations by installing CRM and ERP systems to gain better control over our business pipeline and our expenses. In addition, Yucheng spun-off two ancillary businesses to our core Software & Solutions strategy by forming a joint-venture with NTT Data, to further develop Yucheng's market leading E-Banking ASP and by divesting the Elegon Infotech joint-venture," stated Weidong Hong, Chairman and CEO of Yucheng.
"We believe that the prospective reserve ratio increase by the People's Bank of China (PBOC) and the possibility that non-performing loans (NPLs) may increase in the near future, which would adversely affect the profits of Chinese banks, caused Chinese banks to reevaluate their spending and contract signings ahead of the New Year. As a result, contracts that management had been negotiating in the fourth quarter 2009 have slipped into 2010, and as negotiations progress may become more limited in scope or provide lower margins. We anticipate banks to remain cautious initiating new projects in the near term. Overall, the shifts in the banking market caused us to experience a revenue shortfall in the fourth quarter of 2009."
2009 Financial Highlights
http://finance.yahoo.com/news/Yucheng-Technologies-Reports-prnews-3441167273.html?x=0&.v=1