– Company Generates More than $12 Million in Cash from Operations for First Six Months – – Continues Training and Hiring Push to Support Growing New Business Pipeline For NFS AscentTM and Increased Joint Venture Technical Support Requirements – – Conference Call Scheduled Today at 9 a.m. ET (6 a.m. PT) – CALABASAS, Calif. – February 13, 2014 – NetSol Technologies, Inc. (NASDAQ: NTWK), a worldwide provider of global IT and enterprise application solutions, today reported financial results for its fiscal 2014 second quarter ended December 31, 2013. Fiscal 2014 Second Quarter Financial Results Total second quarter revenue amounted to $8.7 million, compared with $11.8 million in the same period last fiscal year, reflecting, as expected, lower license sales during the transition to NetSol’s next-generation financing and leasing solution, NFS AscentTM. License revenue for the fiscal 2014 second quarter was $456,000, versus $3.5 million in the same period last year. Maintenance revenue for the fiscal 2014 second quarter increased to $2.9 million from $2.7 million last year, reflecting the completion of certain projects. Service revenue remained consistent at $5.4 million, principally attributable to the first-generation NFS platform and additional service and change requests from customers. Service revenue in the second quarter of fiscal 2013 was $5.6 million. “As we discussed in our outlook last quarter, results for the second fiscal quarter reflected the anticipated contraction in license revenue during the transition from our first-generation NFS product to the next-generation NFS Ascent platform, which we officially launched in the quarter,” said Najeeb Ghauri, CEO. “The launch of NFS Ascent is progressing, particularly in North America and Europe where we have developed a strong new business pipeline with potential new customers and with current customers that we support in other regions throughout the world. “As these negotiations progress, we are actively increasing our bench of talented employees, with more than 100 new employees going through various stages of training, so that we are ready to move quickly on additional new deals as they arise,” added Ghauri. Total operating expenses for the fiscal 2014 second quarter amounted to $4.3 million, versus $3.8 million in the fiscal 2013 second quarter. Operating expenses decreased from $4.9 million in the first quarter of fiscal 2014. Operating loss for the second quarter of fiscal 2014 was $1.6 million, compared with operating income of $2.9 million last year. Net loss was $1.6 million for the fiscal second quarter, equal to $0.18 per share, based on 9.1 million weighted average number of diluted shares outstanding. Net income for the same period last year was $2.2 million, or $0.28 per diluted share, based on 8.0 million weighted average number of diluted shares outstanding. For the first half of fiscal 2014, total revenue was $17.8 million, versus $22.9 million for the first six months of fiscal 2013. Net loss for the fiscal 2014 year-to-date period was $2.7 million, or $0.30 per share, compared with net income of $3.2 million, or $0.40 per diluted share, last year. At December 31, 2013, cash and cash equivalents increased to $11.6 million from $6.8 million at September 30, 2013, reflecting improved collections in the quarter. At June 30, 2013, cash and cash equivalents were $7.9 million. Cash provided by operations for the first six months of fiscal 2014 was $12.7 million, compared with $9.4 million for the first six months of fiscal 2013. “We are well capitalized to manage our milestone product transition and further build the organization,” concluded Ghauri. “With a robust backlog of services and maintenance revenue, and a growing new business pipeline for NFS Ascent, as well as expected additional contributions from our joint-ventures, we are optimistic about our long-term business prospects moving forward.” Fiscal 2014 Second Quarter Conference Call When: Thursday, February 13 Time: 9:00 a.m. Eastern Phone: 1- 888-549-7880 (domestic) or 1- 480-629-9643 (international) Conference ID: 4667450 Webcast: http://www.netsoltech.com/us/investors/event-presentation Archived: 90 days About NetSol Technologies NetSol Technologies, Inc. (www.netsoltech.com) is a worldwide provider of global IT and enterprise application solutions that include credit and finance portfolio management systems, SAP consulting and services, custom development, systems integration and technical services for asset finance and leasing in the automotive, insurance, energy and technology markets. Headquartered in Calabasas, Calif., NetSol’s product and services offerings have achieved ISO 9001, ISO 20000, ISO 27001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Maturity Level 5 assessments, a distinction shared by only 178 companies worldwide. The company’s clients include Fortune 500 manufacturers, global automakers, financial institutions, utilities, technology providers and government agencies. NetSol has delivery and support locations in San Francisco, London, Beijing, Bangkok, Lahore, Sydney and Riyadh. Follow NetSol Technologies on Twitter at https://twitter.com/NetSolTech NetSol Technologies Google page at https://plus.google.com/ netsoltechnologies Forward-Looking Statements This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based. NETSOL TECHNOLOGIES REPORTS FISCAL 2014 SECOND QUARTER RESULTS Disclaimer: NASDAQ Dubai is not responsible for the content of issuer disclosures. This market disclosure has been issued pursuant to the DFSA Rules.