VanceInfo Underwhelms With Latest Results, Guidance 文思创新业绩平淡

By newsdoug on May 16, 2011

VanceInfo: uninspired results It’s time to take a break from the antics of Alibaba and Yahoo (Nasdaq: YHOO) and look at some of the other interesting companies in the China universe, which brings me to software outsourcing firm VanceInfo (NYSE: VIT), which has just posted quarterly results and updated annual guidance that look decidedly unimpressive. (Results announcement) I was intrigued earlier this year when VanceInfo linked up with leading global business software maker Oracle (Nasdaq: ORCL), seeing the tie-up as an opportunity for major new business development. (previous post) That new business doesn’t appear to be coming anytime soon, however, as VanceInfo posted relatively ho-hum revenue growth of around 30 percent and only 5 percent profit growth on sharply higher costs. Investors seemed equally underwhelmed, as VanceInfo’s shares dropped 10 percent in NYSE trading. The company tried to put some of the blame on Japan’s earthquake, even though Japan counts for just a tiny fraction of its revenue. Considering the high-growth space that this company occupies and its market-leading position, VanceInfo should be capable of more exciting growth than just 30 percent, which, while high by most standards, seems disappointing for China. if it continues to post such mediocre performance — which looks likely based on its updated full-year guidance — look for its stock price and valuation to continue dropping further still for the rest of the year.

Bottom line: VanceInfo is failing to capitalize on its market leading position in China’s software outsourcing market, and needs to breathe new life into its top and bottom lines to justify its valuation.

别再纠结于阿里巴巴和雅虎<YHOO.O>之争了，还是留意一下其他公司吧，于是我注意到了文思创新软件<VIT.N>。该公司刚刚公布季度财报，并更新年度财测，不过看起来都是平淡无奇。今年早些时候，文思创新与软件巨头甲骨文<ORCL.O>结盟，并将此视作开发新业务的重大机遇，但看来短期内难以如愿。该公司营收增长了30%，而由於成本大幅上升，其利润仅增5%。投资者看来也不太买账，其股价周一重挫10%。文思创新试图将业绩不佳归咎於日本地震，但日本在其营收中所占比例相当低。鉴於中国软件外包领域高速增长，且该公司占据领先地位，营收增长本应不止30%而已。如果文思创新未来业绩还是这麽平淡无奇，估计在今年余下时间里，其股价和估值将继续下滑。

一句话：文思创新未能充分发挥在中国软件外包市场领头羊地位，其营收和获利须有重大改观，其估值方才显得合理。