Netsol Technologies
NTWK
NTWK
NetSol Technologies, Inc. (NASDAQ: NTWK), a worldwide provider of global IT and enterprise application solutions, today reported financial results for its fiscal 2014 first quarter ended September 30, 2013, according to the official website of Nasdaq Dubai.
Fiscal2014 First Quarter Financial Results Total first quarter revenue amounted to $9.1 million, compared with $11.1 million in the same period last fiscal year, reflecting lower license revenue attributable to timing on the closing of certain new business transactions, as well as the company’s transition to its next-generation financing and leasing solution, NFS AscentTM.
License revenue for the fiscal 2014 first quarter was $2.3 million, versus $3.2 million in the same period last year. Maintenance revenue for the fiscal 2014 first quarter increased to $2.4 million from $2.0 million last fiscal year, reflecting the completion of NFSTM implementations. Services revenue decreased to $4.4 million from $5.8 million for the first quarter of fiscal 2013, reflecting fewer license sales in the quarter.
“Results this quarter reflected as lowing of license sales for the first-generation of NFS, as new clients embrace our new, next-generation NFS Ascent platform. In the enterprise software segment, companies typically experience a phase of contraction in the sales of prior products, while next-generation platforms start to gain traction,” said Najeeb Ghauri, CEO. “We are excited to have officially introduced our next-generation solution, NFS Ascent, which we believe will be a game-changer for NetSol, and is the result of more than four years of development. NFS Ascent represents the most advanced solution available in the marketplace, allowing us to leapfrog the competition. Early response from customers has been outstanding, and we are very confident in our market opportunity moving forward, with discussions well underway with potential new global customers, including in North America and Europe.
“Our current sales backlog includes a significant amount of services revenue based upon the first-generation platform. Accordingly, to protect our clients’ investments, NetSol will continue to service and support our first-generation NFS solution for many years to come. We expect that licensee revenue for the first-generation NFS platform to continue to contract over the next two quarters, offset as adoption of NFS Ascent increases, reaching an inflection point in the second half of the current fiscal year,” added Ghauri.
Total operating expenses for the fiscal 2014 first quarter amounted to $4.9 million, versus $3.8 million in the fiscal 2013 first quarter, reflecting the ramp-up of sales and marketing activities. Operating expenses for the preceding fourth quarter of fiscal 2013 were $4.7 million.
Operating loss for the firstquarter of fiscal 2014 was $1.5 million, compared with operating income of $1.5million last year.
Net loss was $1.1 million for the fiscal first quarter, equal to $0.12 per share, compared with net income of$929,000, or $0.12 per diluted share, in the comparable period of the prior fiscal year. This includes a deduction of net income by $634,000 for non-controlling interest, compared with $332,000 in the comparative period. Weighted average number of diluted share outstanding for the period was 9.0 million shares.
At September 30, 2013, cash and cash equivalents amounted to $6.8 million, reflecting NetSol’s investment in additional infrastructure to support its expansion strategy.
“The quarter’s financial results are not indicative of the underlying strength of our company or the reputation we have earned with prestigious global companies,” Ghauri said. “The large number of staff we are adding across the globe demonstrates our confidence in where we believe the business is headed and our opportunity with NFS Ascent. NetSol is well capitalized, with great people and world-class customers as we embark on this milestone transition,” he added.
Fiscal2014 First Quarter Financial Results Total first quarter revenue amounted to $9.1 million, compared with $11.1 million in the same period last fiscal year, reflecting lower license revenue attributable to timing on the closing of certain new business transactions, as well as the company’s transition to its next-generation financing and leasing solution, NFS AscentTM.
License revenue for the fiscal 2014 first quarter was $2.3 million, versus $3.2 million in the same period last year. Maintenance revenue for the fiscal 2014 first quarter increased to $2.4 million from $2.0 million last fiscal year, reflecting the completion of NFSTM implementations. Services revenue decreased to $4.4 million from $5.8 million for the first quarter of fiscal 2013, reflecting fewer license sales in the quarter.
“Results this quarter reflected as lowing of license sales for the first-generation of NFS, as new clients embrace our new, next-generation NFS Ascent platform. In the enterprise software segment, companies typically experience a phase of contraction in the sales of prior products, while next-generation platforms start to gain traction,” said Najeeb Ghauri, CEO. “We are excited to have officially introduced our next-generation solution, NFS Ascent, which we believe will be a game-changer for NetSol, and is the result of more than four years of development. NFS Ascent represents the most advanced solution available in the marketplace, allowing us to leapfrog the competition. Early response from customers has been outstanding, and we are very confident in our market opportunity moving forward, with discussions well underway with potential new global customers, including in North America and Europe.
“Our current sales backlog includes a significant amount of services revenue based upon the first-generation platform. Accordingly, to protect our clients’ investments, NetSol will continue to service and support our first-generation NFS solution for many years to come. We expect that licensee revenue for the first-generation NFS platform to continue to contract over the next two quarters, offset as adoption of NFS Ascent increases, reaching an inflection point in the second half of the current fiscal year,” added Ghauri.
Total operating expenses for the fiscal 2014 first quarter amounted to $4.9 million, versus $3.8 million in the fiscal 2013 first quarter, reflecting the ramp-up of sales and marketing activities. Operating expenses for the preceding fourth quarter of fiscal 2013 were $4.7 million.
Operating loss for the firstquarter of fiscal 2014 was $1.5 million, compared with operating income of $1.5million last year.
Net loss was $1.1 million for the fiscal first quarter, equal to $0.12 per share, compared with net income of$929,000, or $0.12 per diluted share, in the comparable period of the prior fiscal year. This includes a deduction of net income by $634,000 for non-controlling interest, compared with $332,000 in the comparative period. Weighted average number of diluted share outstanding for the period was 9.0 million shares.
At September 30, 2013, cash and cash equivalents amounted to $6.8 million, reflecting NetSol’s investment in additional infrastructure to support its expansion strategy.
“The quarter’s financial results are not indicative of the underlying strength of our company or the reputation we have earned with prestigious global companies,” Ghauri said. “The large number of staff we are adding across the globe demonstrates our confidence in where we believe the business is headed and our opportunity with NFS Ascent. NetSol is well capitalized, with great people and world-class customers as we embark on this milestone transition,” he added.
Source:
Mubasher
