HiSoft makes USD3.5m bad debt provision in 2010 results.
TELECOMWORLDWIRE-February 24, 2011-HiSoft makes USD3.5m bad debt provision in 2010 results(C)1994-2011 M2 COMMUNICATIONS http://www.m2.com
HiSoft Technology International Limited (Nasdaq:HSFT), a China-based provider of outsourced IT and R&D services, revealed on Wednesday that it will include a bad debt provision of USD3.5m in its results for the full year of 2010.
This provision equates to approximately USD0.15 to USD0.16 per ADS.
As a result of the bad debt provision HiSoft has adjusted its full-year outlook for non-GAAP diluted earnings per ADS to an estimated range of USD0.67 to USD0.68, from the previously estimated range of USD0.82 to USD0.83.
HiSoft's chief executive officer Tiak Koon Loh said that the company discovered a credit risk associated with a particular client that is experiencing cash flow issues and decided to provide a full provision of the doubtful accounts for the receivable balance for this client as of 31 December 2010.
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