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iSoftStone Provides Statements of Cash Flows and Details of Bank Balances Supplementary to its First Quarter 2011 Earnings Release dated May 13, 2011
May 31, 2011 (05:05 PM EDT)
BEIJING, May 31, 2011 /PRNewswire-Asia/ -- iSoftStone Holdings Limited (NYSE: ISS) ("iSoftStone" or the "company"), a leading China-based IT services provider, today provided additional disclosure information to its quarterly earnings results announced on May 13, 2011, including unaudited statements of cash flows for the quarters ended March 31, 2010 and 2011, and unaudited bank account details as of December 31, 2010 and March 31, 2011 in response to the recent increasing concerns about financial integrity and soundness of corporate governance practices of U.S. listed Chinese companies after one China-based IT service company has been alleged to have committed fraudulent acts.
Mr. Xiaosong (Jonathan) Zhang, iSoftStone's Chief Financial Officer, said, "iSoftStone operates a global business portfolio and business base with 19 sales and delivery centers worldwide of which 13 are located in China. Therefore, we have various bank accounts with local Chinese commercial banks to facilitate our operational activities relating to payments for payroll, reimbursements, purchases, and taxes in each city where we conduct our business. We manage almost all treasury related activities centrally at our headquarters through e-banking systems with these commercial banks. In our daily operation, we have clearly defined authorization procedures for payment approvals with limits for each level of approval and segregation of duties in access to these e-banking systems and check books. Senior management monitors the cash positions through detailed cash reports on the weekly basis, and the e-banking systems allow us to validate the account balances and promptly investigate transaction details of any suspicious activities identified.
"To increase investors' sustained visibility of our quarterly changes in cash, we will provide statements of cash flows in our future quarterly earnings news releases, which we also furnish to the Securities and Exchange Commission on Form 6-K."
Mr. Tianwen Liu, Chairman and CEO of iSoftStone, said, "Long before becoming a public company, we adopted the bulk of our corporate governance practices that are in place today, and we will continue to strive to meet the highest standards in corporate governance in the future. We thoroughly understand the meaning of "creditability" in market and will continue to adhere to the principles of financial integrity and transparency. It is unfortunate that an isolated case of alleged fraud and subsequent bad judgment happened in the IT sector, which has affected all IT companies in the past few weeks. Fraud is possible anywhere, in any industry. At iSoftStone, we are taking the very best actions possible to prevent and defeat fraudulent activities. Despite these near-term concerns, we are continuing on our long-term plan by moving ahead to capitalize on the market opportunities available to us, by focusing on our established strategies to grow our business, and by achieving our short-term and long-term goals."
Safe harbor statement
This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include our plans to capitalize on market opportunities and our continued focus on existing strategies to grow our business and achieve our targets.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Risks and uncertainties that could cause our actual results to differ from what we currently anticipate include: our ability to effectively manage our rapid growth; intense competition from China-based and international IT services companies; our ability to attract and retain sufficiently trained professionals to support our operations; and our ability to anticipate and develop new services and enhance existing services to keep pace with rapid changes in technology and in our selected industries. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see "Risk Factors" that begins on page 15 of Form 424(b) that we filed with the U.S. Securities and Exchange Commission on December 14, 2010, which can be found on our website at www.isoftstone.com and at www.sec.gov.
All projections in this release are based on limited information currently available to us, which is subject to change. Although these projections and the factors influencing them will likely change, we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, after the date of this news release, except as required by law. Such information speaks only as of the date of this release.
About iSoftStone Holdings Limited
Founded in 2001, iSoftStone is a leading China-based IT services provider serving both greater China and global clients. iSoftStone provides an integrated suite of IT services and solutions including consulting & solutions, IT services, and business process outsourcing services. The company focuses on industry verticals that include technology, communications, banking, financial services, insurance, energy, transportation, and public sectors.
iSoftStone's American depositary shares began trading on the New York Stock Exchange on December 14, 2010.
For more information, please visit www.isoftstone.com.
SOURCE iSoftStone Information Technology (Group) Co., Ltd.