Software

Global Woes Don't Hamper Longtop's China Growth

The global financial crisis does not seem to be slowing growth for Chinese financial services software provider Longtop Financial Technologies Limited, as it today announced unaudited financial results for the quarter ended December 31, 2008.

This final quarter for last year is actually its third quarter of its fiscal year ending March 31, 2009. During that period, total revenues hit USD32.9 million, an increase of 79.3% year-on-year, and net income was USD16.5 million, an increase of 57.7% year-on-year.

"I’m pleased to report another outstanding quarter in which we exceeded our top and bottom line guidance. Longtop is able to perform well even in a challenging economic environment because our software solutions and services are indispensable business technology for our customers and generate recurring revenue and profits; we serve a diversified and well-funded customer base keen to invest in information technology; and we operate in a market with long-lasting growth potential," stated Weizhou Lian, CEO of Longtop.

Adjusted operating expenses, which were 18.6% and 18.8% of revenue for the three and nine months ended December 31, 2008, are in line with full year company guidance of 20.0%. The year-on-year increase in total adjusted operating expenses of 56.8% for the first nine months of fiscal 2009 is less than total revenue growth of 61.6% demonstrating leverage in Longtop’s business model, states the company.

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