Hollysys Automation (NASDAQ: HOLI) reported Q4 EPS of $0.04, $0.34 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $129.22 million versus the consensus estimate of $147.75 million.

Fourth Quarter of Fiscal Year 2020 Financial Highlights

• Non-GAAP net income attributable to Hollysys was $2.2 million, a decrease of 91.3% compared to the comparable prior year period.
• Total revenues were $129.2 million, a decrease of 17.7% compared to the comparable prior year period.
• Non-GAAP gross margin was at 44.7%, compared to 34.0% for the comparable prior year period.
• Non-GAAP diluted EPS were at $0.04, a decrease of 90.5% compared to the comparable prior year period.
• Net cash provided by operating activities was $57.7 million, an increase of 317.6% compared to the comparable prior year period.
• DSO of 166 days, compared to 160 days for the comparable prior year period.
• Inventory turnover days of 66 days, compared to 42 days for the comparable prior year period.

On July 7th and 9th, the Company announced change of the management team and the board. Mr. Baiqing SHAO was removed from his positions as the Company's CEO, director and Chairman of the Board. Ms. Li QIAO, current director of the Company, was elected as the Chairwoman of the Board and Mr. Chit Nim (Colin) SUNG, current director of the Company, was elected as the CEO of the Company. Four new officers of the Company were appointed. Mr. Lei FANG, current head of IA business of the Company and Mr. Yue XU, current head of Rail business of the Company were appointed as Co-Chief Operating Officer of the Company. Dr. Chunming HE, current head of R&D of Hollysys Group, was appointed as Chief Technology Officer of the Company, and Mr. Hongyuan SHI, current head of human resource of Hollysys Goup, was appointed as the Chief Human Resource Officer of the Company.

Ms. Li QIAO, chairwoman of the board, remarks on such change, "The board has made such decision in light of the strategic and financial planning development of the Company. Mr. Sung and our four new officers have been with the Company for many years and are familiar with the Company. We expect their professional experiences in operation, management and capital market to offer unique and insightful idea to the Company."

Mr. Chit Nim (Colin) Sung, CEO of the Company, remarks "First and foremost, we would like to convey the key information to the market that currently, operation and financial condition of the Company remain as usual and stable. We will continue to value and increase our investment in research and development as our key competitive edge, and our vision of automation for better life. We are confident in the Company's solid and steady performance going forward."

Business Outlook

The management concluded, "Based on our backlog currently on-hand and sales pipeline envisioned so far, we expect a 6% to 8% revenue growth in fiscal year 2021."

The business outlook stated above includes the anticipated effects of COVID-19 impact to our business for the upcoming fiscal year and Company will provide further update on quarterly basis.

For earnings history and earnings-related data on Hollysys Automation (HOLI) click here.