Exhibit 99.1
Global Partner for Success
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HiSoft Issues Corporate Deposit Account List and Cash Flow Statements
Additional disclosures illustrate HiSoft’s commitment to investor transparency, integrity and corporate governance
BEIJING, May 25, 2011 -- HiSoft Technology International Limited, (“HiSoft” or the “Company”) (NASDAQ: HSFT), a leading China-based provider of outsourced information technology and research and development services headquartered in Dalian, China, today issued an unaudited corporate deposit account list identifying each corporate cash account and the balance and location of each account. The Company also issued an unaudited quarterly cash flow statement disclosing the amount of cash used for operating, investing and financing activities.
“Given recent industry developments, investors may have general concerns regarding the financial integrity and corporate governance practices of Chinese companies listed in the United States,” said HiSoft Chief Financial Officer Christine Lu-Wong. “In an effort to further instill investor confidence in our business and prove our dedication to transparency and financial integrity, we have decided to proactively issue additional cash-related disclosures. Going forward, we will continue to disclose our cash flow statement on a quarterly basis, as we position ourselves as a Company with a strong track record for performance, sound corporate governance and financial integrity.”
HISOFT TECHNOLOGY INTERNATIONAL LIMITED
Corporate Deposit Account List
(in US dollars in thousands)
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| March 31, 20111 |
| December 31, 20102 |
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| (Unaudited) |
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Cash in hand |
| $ | 69 |
| $ | 59 |
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Bank of America, South Carolina, United States |
| 2,868 |
| 4,778 |
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Bank of Beijing, Beijing, PRC |
| 502 |
| 1,593 |
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Bank of China, Chengdu, PRC |
| 70 |
| 135 |
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Bank of Communications, Dalian, PRC |
| 13 |
| 58 |
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Bank of Communications, Shanghai, PRC |
| - |
| 240 |
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Bank of East Asia, Offshore Accounts |
| 6,215 |
| - |
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Bank of East Asia, Beijing, PRC |
| 15,103 |
| 9,925 |
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Bank of Jiangsu, Wuxi, PRC |
| 796 |
| 134 |
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Bank of Tokyo-Mitsubishi UFJ, Tokyo, Japan |
| 4,264 |
| 2,746 |
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China Merchants Bank, Offshore Accounts |
| 30,001 |
| 62,068 |
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China Construction Bank, Dalian, PRC |
| 2,318 |
| 1,458 |
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China Merchants Bank, Beijing, PRC |
| 3,531 |
| 9,879 |
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China Merchants Bank, Dalian, PRC |
| 49,612 |
| 50,000 |
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China Merchants Bank, Guangzhou, PRC |
| 12 |
| 208 |
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China Merchants Bank, Shanghai, PRC |
| 439 |
| - |
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China Merchants Bank, Shenzhen, PRC |
| 2,169 |
| 2,342 |
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China Merchants Bank, Wuxi, PRC |
| 3,874 |
| 4,405 |
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China Minsheng Banking, Beijing, PRC |
| 2,564 |
| 608 |
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Citi Bank, Singapore |
| 1,001 |
| 1,186 |
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DBS Bank, Singapore |
| 16 |
| 142 |
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Industrial and Commercial Bank of China, Dalian, PRC |
| 94 |
| 72 |
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Shenzhen Development Bank, Dalian, PRC |
| 242 |
| 242 |
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Standard Chartered Bank, Hong Kong |
| 1,168 |
| 14,839 |
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Sumitomo Mitsui Banking Corporation, Tokyo, Japan |
| 394 |
| 421 |
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United Overseas Bank, Singapore |
| 771 |
| 1,264 |
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1 Amounts shown that are not held in U.S. dollars have been converted at the relevant exchange rates as of March 31, 2011.
2 Amounts shown that are not held in U.S. dollars have been converted at the relevant exchange rates as of December 31, 2010.
HiSoft Technology International Limited ~ 6/F Haya Plaza, No.1 Shangdi East Road Haidian District Beijing, China 100085
100085 ~ www.hisoft.com ~ +86.10.5987.5566
Global Partner for Success
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Wells Fargo Bank, Virginia, United States |
| 138 |
| 1,091 |
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| Total |
| $ | 128,244 |
| $ | 169,893 |
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www.hisoft.com ~ +86.10.5987.5566
Global Partner for Success
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HISOFT TECHNOLOGY INTERNATIONAL LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in U.S. dollars in thousands)
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| Three-Month Periods Ended March 31, | ||
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| 2011 |
| 2010 |
Cash flows from operating activities: |
| (Unaudited) |
| (Unaudited) |
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Net income |
| 2,817 |
| 2,967 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
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Provision for doubtful accounts |
| 356 |
| 100 |
Loss on disposal of property, plant and equipment |
| 32 |
| 340 |
Depreciation |
| 918 |
| 753 |
Change in fair value of foreign-currency forward contract |
| (4) |
| (17) |
Amortization of intangible assets |
| 411 |
| 163 |
Interest expense (income) |
| 64 |
| (38) |
Share-based compensation expenses |
| 1,177 |
| 589 |
Changes in fair value of contingent consideration |
| 350 |
| 144 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
| (1,243) |
| (3,532) |
Other current assets |
| (1,095) |
| 287 |
Other assets |
| (41) |
| (427) |
Accounts payable |
| 134 |
| (415) |
Other liabilities |
| (3,653) |
| 556 |
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Net cash provided by operating activities |
| 223 |
| 1,470 |
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Cash flows from investing activities: |
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Purchase of property, plant and equipment |
| (1,491) |
| (918) |
Restricted cash |
| (15) |
| (19) |
Cash received from non-controlling |
| 908 |
| - |
Payment for business acquisition |
| (2,200) |
| (2,430) |
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Net cash used in investing activities |
| (2,798) |
| (3,367) |
www.hisoft.com ~ +86.10.5987.5566