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NetSol Technologies Reports Record Fiscal Year 2008 Financial Results
(September 18, 2008)
Netsol Technologies to Announce Fiscal Year 2008 Financial Results on September 18, 2008
(August 28, 2008)
Al-Amthal Leasing Goes Live With NetSol Technologies' LeaseSoft Solution
(August 12, 2008)
Mercedes-Benz Financial Services Taiwan Goes Live With NetSol Technologies' LeaseSoft Solution
(August 05, 2008)
NetSol Technologies Signs New Frame Agreement With Daimler Financial Services
(July 31, 2008)
NetSol Technologies Initiates Full Year Fiscal 2009 Financial Guidance
(July 28, 2008)
NetSol Technologies to Initiate Fiscal Year 2009 Financial Guidance on July 28
(July 17, 2008)
NetSol Technologies Europe Launches LeaseSoft Multi-Product Strategy With a Recent Multi-Million Dollar Agreement With a Major European Bank
(July 14, 2008)
NetSol Technologies to Commence Trading on the Dubai International Financial Exchange (DIFX) on June 16
(June 16, 2008)
NetSol Technologies Announces Approval to Dual List on the Dubai International Financial Exchange (DIFX)
(June 05, 2008)
NetSol Technologies Reports Third Quarter Fiscal Year 2008 Financial Results
(May 13, 2008)
NetSol Technologies to Announce Third Quarter Fiscal Year 2008 Financial Results on May 13, 2008
(April 30, 2008)
Venture Finance Implements NetSol's LeaseSoft Suite to Manage New Block Discounting Portfolio
(April 21, 2008)
NetSol to Commence IT Industry Apprenticeship Program
(April 09, 2008)
NetSol Technologies Selected for Additional Land Record Automation Project for the Islamabad Capital Territory
(March 31, 2008)
Dongfeng-Nissan Automotive Finance (DNAF) China Goes Live With NetSol Technologies' LeaseSoft Solution
(March 26, 2008)
NetSol Technologies Launches New Information Security Management Initiative
(March 04, 2008)
NetSol Technologies wins Basel || consultancy contract with leading banks in Pakistan
(February 29, 2008)
NetSol Technologies' Development Center in Lahore Achieves ISO 27001 Certification
(January 23, 2008)
NetSol Technologies Named to Software Magazine's 25th Annual Software 500
(January 07, 2008)
NetSol Technologies to Announce Second Quarter Fiscal Year 2008 Financial Results on February 13, 2008
(February 13, 2008)
NetSol Technologies Announces Marketing Partnership in Greece
(November 30, 2007)
NetSol Technologies Reports Record Revenue and Net Income for Fiscal First Quarter 2008
(November 08, 2007)
NetSol Expands Into Healthcare Sector Automation
(October 01, 2007)
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NetSol Technologies Reports Record Fiscal Year 2008 Financial Results
Revenues Set New Annual and Quarterly Records, Rising 25% and 23% Year-Over-Year to Total $36.6 Million and $10.5 Million Respectively; GAAP Net Income Sets a Full Year Record of $7.2 Million, or $0.28 per Diluted Share, Versus a Year Ago Loss; Fourth Quarter GAAP Net Income Increased 58% to $2.1 Million, or $0.08 per Diluted Share; EBITDA Sets New Annual and Quarterly Records Rising to $11.3 Million and $3.3 Million Respectively
CALABASAS, CA -- (Marketwire) -- 09/18/08 -- NetSol Technologies Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and
enterprise application solutions, today announced fiscal fourth quarter and
full year 2008 financial results, for the fiscal year ended June 30, 2008.
FISCAL FOURTH QUARTER 2008 CONSOLIDATED FINANCIAL HIGHLIGHTS
-- Revenues increased 23% year-over-year to $10.5 million, up 16%
sequentially from the fiscal third quarter
-- License fees increased 67% to $4.9 million
-- Maintenance fees increased 21% to $1.7 million
-- Service fees decreased 8% to $3.8 million
-- GAAP net income increased to $2.1 million, or $0.08 per fully diluted
share, versus $1.3 million, or $0.07 per fully diluted share, in the
year ago period
-- EBITDA increased to a record $3.3 million, or $0.12 per diluted share,
representing a 31% EBITDA margin, versus EBITDA of $2.0 million, or
$0.10 per diluted share, in the year ago period
-- NetSol reiterates its fiscal year 2009 financial guidance calling for
annual revenue growth between 30% to 35% over fiscal year 2008 levels
and diluted earnings per share between $0.40 to $0.45
Najeeb Ghauri, NetSol Technologies chairman and chief executive officer,
commented, "NetSol delivered a truly outstanding performance in fiscal
2008, complemented by a strong fourth quarter, as we delivered record
revenue, GAAP net income and EBITDA results, all meeting or exceeding our
projected full year financial guidance. These exceptional financial results
were supported by our ability to execute on our strategic product and
growth objectives while further strengthening our global client servicing
and delivery platform. The strength of our core NetSol financial suite of
products helped drive double-digit annual growth in license, service and
maintenance revenues. This was complemented by the rollout of our new
BestShoring(TM) business model and Global Business Services platform which
reflect our continued focus on meeting our international clients' needs for
local expertise matched with high quality offshore delivery capabilities.
Our success in executing during fiscal 2008 was highlighted by rising
average deal sizes as well as the expansion or penetration of business
verticals such as finance, e-government and healthcare. We continue to
diversify our revenue streams geographically as well as by customer focus
as we expand NetSol's presence globally, while also meeting our financial
growth objectives.
"We are reiterating our fiscal year 2009 financial guidance and believe
that our current business backlog, strong pipeline, expanded product and
service offerings, combined with our 2009 strategic growth initiatives,
will provide a solid platform to meet these ambitious goals. From a
strategic perspective, we are continuing to invest in our sales and
marketing resources to support our core operating divisions, particularly
in North America where we recently announced the opening of our new global
operating headquarters, while penetrating new growth markets such as the
Middle East as well as Central and South America. Overall, we continue to
focus on diversifying our customer base and client delivery centers to
support our global growth initiatives. I am extremely pleased with our
fiscal 2008 performance and believe NetSol has never been better positioned
as we look to leverage the opportunities we are seeing in the international
markets for fiscal 2009," concluded Mr. Ghauri.
NetSol reported record consolidated revenues of $10.5 million for the
fourth quarter of fiscal year 2008, a 23% increase compared to the $8.6
million in revenues reported for the same period a year ago. Consolidated
gross profit for the fourth quarter was approximately $5.8 million, or 55%
of total revenues.
U.S. GAAP (Generally Accepted Accounting Principles) net income for the
fourth quarter of fiscal year 2008 was approximately $2.1 million, or $0.08
per diluted share, which compares to GAAP net income of $1.3 million or
$0.07 per diluted share, in the same period of fiscal year 2007. NetSol
reported EBITDA of $3.3 million, or $0.12 per diluted share, for the fourth
quarter of fiscal year 2008 compared to EBITDA of $2.0 million, or $0.10
per diluted share, in the year ago period.
EBITDA is defined as earnings before interest, taxes, depreciation and
amortization. The Company uses EBITDA as a measure of the Company's
operating trends. Investors are cautioned that EBITDA is not a measure of
liquidity or of financial performance under Generally Accepted Accounting
Principles (GAAP). The EBITDA numbers presented may not be comparable to
similarly titled measures reported by other companies. EBITDA, while
providing useful information, should not be considered in isolation or as
an alternative to net income or cash flows as determined under GAAP.
Consistent with the SEC Regulation G, the non-GAAP measures in this press
release have been reconciled to the nearest GAAP measure, and this
reconciliation is located under the financial table heading "Reconciliation
to GAAP."
FISCAL YEAR 2008 BUSINESS HIGHLIGHTS
-- Introduced BestShoring(TM) and Global Business Services strategy as an
evolution of NetSol's core business offerings across NetSol's
international delivery centers.
-- Increased sales of NetSol's financial suite of products with
multi-million deals in Asia, North America and Europe, supporting
higher average deal sizes and increased diversification of NetSol's
global customer base.
-- Expanded addressable markets and business verticals with increased
penetration in finance, e-government, healthcare and defense.
-- Strengthened North American operations with key management additions
as well as additional sales and marketing resources.
-- Billable resources in the NetSol Innovation Group joint venture
increased to 130 employees.
-- Increased branding and customer reach into the Middle East including a
LeaseSoft contract win with one of the largest leasing companies in
Saudi Arabia.
-- Expanded global capital market access and Middle East market presence,
becoming the first U.S. Company to successfully dual list on the Dubai
International Financial Exchange (DIFX).
-- Awarded second pilot project for the implementation of a Land Record
Management Information System (LRMIS) for the Islamabad Capital
Territory, Pakistan, the second LRMIS project NetSol has been awarded.
-- NetSol Technologies' Development Center in Lahore achieved ISO 27001
certification.
FISCAL YEAR 2008 CONSOLIDATED FINANCIAL HIGHLIGHTS
-- Revenues for the full fiscal 2008 year increased 25% to $36.6 million
-- License fees improved 30% to $12.7 million
-- Maintenance fees increased 16% to $6.3 million
-- Service fees increased 26% to $17.7 million
-- Gross margin improved to 57% compared to 53% in the same period a
year ago
-- GAAP net income increased to a record $7.2 million, or $0.28 per
diluted share
-- EBITDA increased to a record $11.3 million, or $0.44 per diluted share,
representing a 31% EBITDA margin
NetSol reported record consolidated revenues of $36.6 million for the full
fiscal 2008 year, a 25% increase compared to the $29.3 million in revenues
reported for the full fiscal 2007 year. Consolidated gross profit for the
full fiscal 2008 year was $20.9 million, or 57% of revenues.
GAAP net income for the 2008 full fiscal year was a record $7.2 million, or
$0.28 per diluted share, compared to net loss of $4.9 million, or a loss of
$0.28 per diluted share, for the full 2007 fiscal year. EBITDA increased
to a record $11.3 million, or $0.44 per diluted share, as compared to
EBITDA loss of $1.5 million, or a loss of $0.08 per diluted share, in the
year ago period.
Conference Call & Webcast Information
NetSol will host a conference call at 11:00 a.m. ET (8:00 a.m. PT) to
review the results. Najeeb Ghauri, chairman and chief executive officer,
Tina Gilger, chief financial officer, and Naeem Ghauri, Europe division
president, will host the call, which will be webcast live. The webcast and
a supporting slide presentation will be made available online at http://www.netsoltek.com/investors/investor_relations.htm. Telephone access
to the conference call is available in North America by dialing +1 (877)
407-0782 or internationally by dialing +1 (201) 689-8567.
An audio replay of the conference call will be available approximately one
hour following the conclusion of the call and will be available for 30
days. To access the replay in North America dial +1 (877) 660-6853 or when
calling internationally dial +1 (201) 612-7415, using replay account code #
286 and conference ID # 295907. An archived replay of the conference
webcast will also be available on the NetSol Technologies web site at http://www.netsoltek.com/investors/investor_relations.htm.
About NetSol Technologies
NetSol Technologies (NASDAQ: NTWK) (DIFX: NTWK) is a worldwide provider of
global business services and enterprise application solutions. NetSol uses
its BestShoring(TM) practices and highly experienced resources in analysis,
development, quality assurance, and implementation to deliver high-quality,
cost-effective solutions. Organized into specialized practices, these
product and services offerings include portfolio management systems for the
financial services industry, consulting, custom development, systems
integration, and technical services for the global Healthcare, Insurance,
Real Estate, and Technology markets. NetSol's commitment to quality is
demonstrated by its achievement of the ISO 9001, ISO 279001, and SEI
(Software Engineering Institute) CMMI (Capability Maturity Model) Level 5
assessments, a distinction shared by fewer than 100 companies worldwide.
NetSol Technologies' clients include Fortune 500 manufacturers, global
automakers, financial institutions, technology providers, and governmental
agencies. Headquartered in Calabasas, California, NetSol Technologies has
operations and offices in London, San Francisco, Sydney, Beijing, Bangkok,
and Lahore. To join the NetSol Technologies Inc. email distribution list
please visit: http://www.b2i.us/irpass.asp?BzID=897&to=ea&s=0.
To learn more about NetSol Technologies Inc., visit www.netsoltech.com.
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 "believe," "expect,"
"anticipate," "intend," variations of such words, and similar expressions,
identify forward looking statements, 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.
Financial Tables Follow
NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months For the Year
Ended June 30, Ended June 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Net Revenues: (UNAUDITED) (AUDITED)
License fees $ 4,915,813 $ 2,936,770 $ 12,685,039 $ 9,788,266
Maintenance fees 1,749,871 1,451,243 6,306,321 5,441,339
Services 3,849,971 4,188,426 17,650,815 14,052,481
------------ ------------ ------------ ------------
Total revenues 10,515,655 8,576,439 36,642,175 29,282,086
Cost of revenues
Salaries and
consultants 2,728,921 2,204,328 10,071,664 8,812,934
Travel 746,745 334,481 1,719,743 1,529,796
Repairs and
maintenance 72,692 117,448 405,140 430,962
Insurance 85,283 58,302 239,043 211,897
Depreciation and
amortization 551,166 100,779 1,398,454 794,482
Other 548,587 434,962 1,890,100 1,914,440
------------ ------------ ------------ ------------
Total cost of
sales 4,733,394 3,250,300 15,724,144 13,694,511
------------ ------------ ------------ ------------
Gross profit 5,782,261 5,326,139 20,918,031 15,587,575
Operating expenses:
Selling and
marketing 904,562 1,056,004 3,722,470 3,161,924
Depreciation and
amortization 517,321 457,086 1,939,502 1,846,790
Bad debt expense 55,016 72,606 58,293 189,873
Salaries and
wages 945,402 781,794 3,703,836 3,696,501
Professional
services,
including
non-cash
compensation 413,490 293,499 837,598 1,067,702
General and
adminstrative 1,170,091 775,735 3,447,113 2,977,917
------------ ------------ ------------ ------------
Total operating
expenses 4,005,882 3,436,724 13,708,812 12,940,707
------------ ------------ ------------ ------------
Income from
operations 1,776,379 1,889,415 7,209,219 2,646,868
Other income and
(expenses):
Gain (Loss) on
sale of assets (2,440) 16,090 (35,484) (2,977)
Beneficial
conversion
feature - - - (2,208,334)
Amortization of
debt discount
and capitalized
cost of debt - - - (2,803,691)
Liquidation
damages - - - (180,890)
Fair market value
of warrants
issued - (34,424) - (68,411)
Interest expense (82,043) (74,476) (626,708) (617,818)
Interest income 35,234 38,092 195,103 201,015
Gain on sale of
subsidiary
shares - - 1,240,808 -
Gain on foreign
currency
exchange rates 1,430,669 42,434 2,020,839 178,522
Other income and
(expenses) 29,600 18,210 148,544 74,050
------------ ------------ ------------ ------------
Total other
income
(expenses) 1,411,020 5,926 2,943,102 (5,428,534)
------------ ------------ ------------ ------------
Net income (loss)
before minority
interest in
subsidiary 3,187,399 1,895,341 10,152,321 (2,781,666)
Minority interest
in subsidiary (1,051,781) (561,508) (2,808,291) (1,935,589)
Income taxes (75,710) (33,686) (121,982) (160,306)
------------ ------------ ------------ ------------
Net income (loss) 2,059,908 1,300,147 7,222,048 (4,877,561)
Dividend required
for preferred
stockholders (33,508) (77,640) (178,541) (237,326)
Subsidiary dividend
(minority holders
portion) - - (817,173) -
Bonus stock
distribution
(minority holders
portion) (615,635) (345,415) (1,160,994) (345,415)
------------ ------------ ------------ ------------
Net income (loss)
applicable to
common
shareholders 1,410,765 877,092 5,065,340 (5,460,302)
Other comprehensive
loss:
Translation
adjustment (2,390,317) (259,113) (3,792,148) (55,770)
------------ ------------ ------------ ------------
Comprehensive
income (loss) $ (979,552) $ 617,979 $ 1,273,192 $ (5,516,072)
============ ============ ============ ============
Net income (loss)
per share:
Basic $ 0.08 $ 0.06 $ 0.29 $ (0.28)
============ ============ ============ ============
Diluted $ 0.08 $ 0.07 $ 0.28 $ (0.28)
============ ============ ============ ============
Weighted average
number of shares
outstanding
Basic 25,425,042 19,706,920 24,118,538 18,189,590
Diluted 27,303,554 19,835,177 25,997,049 18,189,590
NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - AS OF JUNE 30, 2008
ASSETS
Current assets:
Cash and cash equivalents $ 6,275,238
Accounts receivable, net of allowance for
doubtful accounts of $108,538 10,988,888
Revenues in excess of billings 11,053,042
Other current assets 2,406,407
-----------
Total current assets 30,723,575
Property and equipment, net of accumulated
depreciation 9,176,780
Other assets, long-term 1,866,437
Intangibles:
Product licenses, renewals, enhancements,
copyrights, trademarks, and tradenames, net 10,837,856
Customer lists, net 1,732,761
Goodwill 9,439,285
-----------
Total intangibles 22,009,902
------------
Total assets $ 63,776,694
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 4,116,659
Current portion of loans and obligations under
capitalized leases 2,280,110
Other payables - acquisitions 846,215
Unearned revenues 3,293,728
Due to officers 184,173
Dividend to preferred stockholders payable 33,508
Loans payable, bank 2,932,551
-----------
Total current liabilities 13,686,944
Obligations under capitalized leases, less
current maturities 332,307
Long term loans; less current maturities 411,608
------------
Total liabilities 14,430,859
Minority interest 6,866,514
Commitments and contingencies -
Stockholders' equity:
Preferred stock, 5,000,000 shares authorized;
1,920 issued and outstanding 1,920,000
Common stock, $.001 par value; 95,000,000
shares authorized; 25,545,482 issued and
outstanding 25,545
Additional paid-in-capital 76,456,697
Treasury stock (35,681)
Accumulated deficit (32,067,003)
Stock subscription receivable (600,907)
Common stock to be issued 1,048,249
Other comprehensive loss (4,267,579)
-----------
Total stockholders' equity 42,479,321
------------
Total liabilities and stockholders' equity $ 63,776,694
============
NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
For the Years
Ended June 30,
2008 2007
------------ ------------
Cash flows from operating activities:
Net income (loss) from continuing
operations $ 7,222,048 $ (4,877,561)
Adjustments to reconcile net income (loss)
applicable to common shareholders to
net cash provided by (used in) operating
activities:
Depreciation and amortization 3,337,956 2,641,272
Bad debt expense 58,293 189,873
Loss on sale of assets 35,484 2,977
Gain on sale of subsidiary shares in Pakistan (1,240,808) -
Minority interest in subsidiary 2,808,291 1,935,589
Stock issued for services 167,926 88,099
Stock issued for convertible note payable
interest - 311,868
Fair market value of warrants and stock
options granted 24,320 136,571
Beneficial conversion feature - 2,208,334
Amortization of capitalized cost of debt - 2,815,358
Changes in operating assets and liabilities:
Increase in accounts receivable (4,123,995) (2,858,608)
Increase in other current assets (4,980,504) (3,359,736)
Decrease in long-term assets 229,622 159,940
Increase in accounts payable and accrued
expenses 233,408 560,136
------------ ------------
Net cash provided by/(used in) operating
activities 3,772,041 (45,888)
Cash flows from investing activities:
Purchases of property and equipment (4,435,755) (2,420,470)
Sales of property and equipment 15,838 366,088
Net proceeds of certificates of deposit - 1,737,481
Bank overdraft 85,335 -
Payments of acquisition payable (879,007) (4,027,753)
Increase in intangible assets (4,829,369) (3,295,262)
------------ ------------
Net cash used in investing activities (10,042,958) (7,639,916)
Cash flows from financing activities:
Proceeds from sale of common stock 1,500,000 1,030,093
Proceeds from the exercise of stock options
and warrants 3,282,827 1,008,250
Proceeds from sale of subsidiary stock 1,765,615 -
Finance costs incurred for sale of common
stock (10,000) -
Purchase of treasury stock (25,486) -
Reduction of restricted cash - 4,533,555
Proceeds from loans from officers - 165,000
Proceeds from bank loans 5,441,870 -
Payments on bank loans (99,936) -
Payments on capital lease obligations &
loans - net (3,409,496) 2,359,017
------------ ------------
Net cash provided by financing activities 8,445,394 9,095,915
Effect of exchange rate changes in cash 90,597 106,285
------------ ------------
Net increase in cash and cash equivalents 2,265,074 1,516,396
Cash and cash equivalents, beginning of year 4,010,164 2,493,768
------------ ------------
Cash and cash equivalents, end of year $ 6,275,238 $ 4,010,164
============ ============
NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION TO GAAP
(UNAUDITED)
For the Three For the Year
Months Ended Ended
June 30, 2008 June 30, 2008
------------- -------------
Net income per GAAP (applicable to common
shareholders) $ 2,059,908 $ 7,222,049
Income taxes 75,710 121,982
Depreciation and amortization 1,068,487 3,354,472
Interest expense 82,043 626,640
------------- -------------
EBITDA income $ 3,286,148 $ 11,325,143
============= =============
Weighted average number of shares
outstanding
Basic 25,425,042 24,118,538
Diluted 27,303,554 25,997,049
------------- -------------
Basic EBITDA EPS $ 0.13 $ 0.47
============= =============
Diluted EBITDA EPS $ 0.12 $ 0.44
============= =============
Contacts:
NetSol Technologies, Inc.
Tina Gilger
Chief Financial Officer
Tel: +1 818-222-9195, x112
Investor Relations
Christopher Chu
Grayling Global
Tel: +1-646-284-9426
Email: cchu@hfgcg.com
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Netsol Technologies to Announce Fiscal Year 2008 Financial Results on September 18, 2008
CALABASAS, CA -- (Marketwire) -- 08/28/08 -- NetSol Technologies Inc. ("NetSol") (NASDAQ: NTWK), a worldwide provider of global business services and enterprise application solutions, plans to announce its fiscal year 2008 financial results on Thursday, September 18, 2008.
Following the distribution of the press release, NetSol will host a conference call at 11:00 a.m. ET (8:00 a.m. PT) to review the results. Najeeb Ghauri, chairman and chief executive officer, Tina Gilger, chief financial officer, and Naeem Ghauri, Europe division president, will host the call, which will be webcast live. The webcast and a supporting slide presentation will be made available online at http://www.netsoltek.com/investors/investor_relations.htm. Telephone access to the conference call is available in North America by dialing +1 (877) 407-0782 or internationally by dialing +1 (201) 689-8567.
An audio replay of the conference call will be available approximately one hour following the conclusion of the call and will be available for 30 days. To access the replay in North America dial +1 (877) 660-6853 or when calling internationally dial +1 (201) 612-7415, using replay account code # 286 and conference ID # 295907. An archived replay of the conference webcast will also be available on the NetSol Technologies web site at http://www.netsoltek.com/investors/investor_relations.htm.
About NetSol Technologies Inc.
NetSol Technologies (NASDAQ: NTWK) (DIFX: NTWK) is a worldwide provider of global business services and enterprise application solutions. NetSol uses its BestShoring(TM) practices and highly experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Organized into specialized practices, these product and services offerings include portfolio management systems for the financial services industry, consulting, custom development, systems integration, and technical services for the global Healthcare, Insurance, Real Estate, and Technology markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 279001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Level 5 assessments, a distinction shared by fewer than 100 companies worldwide. NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial institutions, technology providers, and governmental agencies. Headquartered in Calabasas, California, NetSol Technologies has operations and offices in London, San Francisco, Sydney, Beijing, Bangkok, and Lahore. To join the NetSol Technologies Inc. email distribution list please visit: http://www.b2i.us/irpass.asp?BzID=897&to=ea&s=0.
To learn more about NetSol Technologies Inc., visit www.netsoltech.com
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 "believe," "expect," "anticipate," "intend," variations of such words, and similar expressions, identify forward looking statements, 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. |
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Al-Amthal Leasing Goes Live With NetSol Technologies' LeaseSoft Solution
CALABASAS, CA -- (Marketwire) -- 08/12/08 -- NetSol Technologies, Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and enterprise application solutions, today announced that Al-Amthal Leasing, one of the largest leasing companies of Saudi Arabia, has gone live with NetSol's LeaseSoft Retail Suite, comprising of the LeaseSoft Credit Application Processing System (CAP), and LeaseSoft Contract Management System (CMS). With this implementation, Al-Amthal's complete retail leasing management system is now run with LeaseSoft solutions. The NetSol LeaseSoft Retail Suite is a key product offering within the NetSol Financial Suite (NFS) of products.
With this implementation LeaseSoft has entered the Middle East market; and is completely Middle East compatible. The LeaseSoft product for the region uses Arabic interfaces, lunar calendar, and has the ability to handle Islamic shariah based financial products.
Commenting on the occasion, Mr. Salim Ghauri, President Asia Pacific and Middle East Region, stated, "LeaseSoft is already positioned as the market leader in the Asia Pacific. Now, with this implementation, we are moving towards the Middle East market as well. We are proud to be associated with one of the biggest names in the Saudi Leasing industry, and look forward to more implementations in the Middle East in the near future."
NetSol's LeaseSoft solution is a premium suite of asset-based leasing software that improves business processes by providing fast and convenient solutions capable of dealing with multi-asset and multi-lingual environments. LeaseSoft solutions are available for customers in motor finance, asset finance, consumer finance, real estate finance and loan finance. |
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Mercedes-Benz Financial Services Taiwan Goes Live With NetSol Technologies' LeaseSoft Solution
Mercedes-Benz Financial Services Taiwan Complete Retail Leasing Management System Running on LeaseSoft Solutions
CALABASAS, CA -- (MARKET WIRE) -- 08/05/08 -- NetSol Technologies, Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and enterprise application solutions, today announced Mercedes-Benz Financial Services Taiwan (MBFSTw) has gone live with NetSol's LeaseSoft Contract Management System (CMS), a key product offering within the NetSol Financial Suite (NFS) of products. MBFSTw is currently using NetSol's Proposal Management System (PMS), another LeaseSoft core application. In using both PMS and CMS modules, MBFSTw's complete retail leasing management system is now run on LeaseSoft solutions.
Commenting on the occasion, Mr. Salim Ghauri, President Asia Pacific Region, stated, "This is a great achievement, as this announcement reaffirms LeaseSoft's position as the product of choice for asset-based leasing software to the automotive sector in the Asia Pacific region. We are proud to extend our relationship with Mercedes as a valuable long time customer. NetSol currently has implemented LeaseSoft at eight Mercedes sites in the Asia Pacific region and we look forward to the opportunity to continue to add value to Mercedes in other regions."
NetSol's LeaseSoft solution is a premium suite of asset-based leasing software that improves business processes by providing fast and convenient solutions capable of dealing with multi-asset and multi-lingual environments. LeaseSoft solutions are available for customers in motor finance, asset finance, consumer finance, real estate finance and loan finance. |
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NetSol Technologies Signs New Frame Agreement With Daimler Financial Services
Daimler Agreement Extends NetSol's Relationship With Its Longest Standing Customer in the Regions of Asia Pacific and Africa
CALABASAS, CA -- (MARKET WIRE) -- 07/31/08 -- NetSol Technologies, Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and enterprise application solutions, today announced that NetSol's Africa and Asia Pacific/Middle East Division has signed a new frame agreement with Daimler Financial Services AG Germany, to service Daimler's needs in Africa and the Asia Pacific region. According to the frame agreement, Daimler Financial Services will extend its scope of consulting services, development, implementation, customization, and maintenance of software from NetSol on the basis of the new frame agreement.
The frame agreement outlines the implementation of basic and general provisions, regulations, and processes of existing and all future individual agreements for the delivery and development of software or services to Daimler Financial Services. The newly signed frame agreement supersedes all earlier agreements with Daimler Financial Services, of which the last agreement renewal was signed in 2004 for use of NetSol's flagship LeaseSoft solution. To date, NetSol is already serving the needs of Daimler Financial Services and its affiliated companies in eight countries in the Asia Pacific region.
Commenting on the announcement, Mr. Salim Ghauri, President Asia Pacific Division stated, "We are extremely pleased to further expand our relationship as a Global Business Services and LeaseSoft software provider to Daimler Financial Services, who has been a valued and long standing global customer since 1996. The signing of this latest frame agreement demonstrates the level of confidence the Daimler Financial Services team has in our ability to provide world class software, services, and implementation across international markets. NetSol's evolution and enhancement of our products and services portfolio has provided a strong platform upon which to meet the changing needs and operating landscape of our key customers such as Daimler Financial Services. We are very grateful to Daimler and Mercedes Benz for their continued belief in NetSol's commitment to providing a best-of-breed product for its automotive leasing needs."
NetSol's LeaseSoft solution is a premium suite of asset-based leasing software that improves business processes by providing fast and convenient solutions capable of dealing with multi-asset and multi-lingual environments. LeaseSoft solutions are available for customers in motor finance, asset finance, consumer finance, real estate finance, and loan finance.
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NetSol Technologies Initiates Full Year Fiscal 2009 Financial Guidance
Fiscal Year 2009 Revenue Growth Forecasted Between 30% to 35% and GAAP EPS Between $0.40 to $0.45; Strong Contract Back Log, Diversified Offerings and Global Customer Base Support Forecasted Growth in Revenue and Profitability
CALABASAS, CA -- (MARKET WIRE) -- 07/28/08 -- NetSol Technologies, Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and enterprise application solutions, today released projected financial guidance for the Company's fiscal year 2009, ending June 30, 2009.
Based on NetSol's revenue growth guidance of between 25 percent and 30 percent for its recently completed full year fiscal 2008, period ended June 30, 2008, the Company is initiating full year fiscal 2009, revenue growth guidance within the range of 30 percent and 35 percent year-over-year. The Company is also projecting diluted earnings per share for the full year fiscal 2009, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), between $0.40 and $0.45. All forecasts are based on management's expectations as well as current market conditions.
"We anticipate a strong financial performance in fiscal 2009 based on the combined strength of NetSol's global operating divisions. The main impetus driving this robust outlook for revenue and profitability growth remains our strong new business pipeline and contract backlog," stated Najeeb Ghauri, NetSol chairman and chief executive officer. "We are well positioned in our space and continue to forecast solid growth based on the breadth of our service offering as well as the geographic diversity of our global customer base. High on-shore costs, especially in the U.S. and Europe, are driving more companies to seek the benefits of NetSol's low cost and high quality products and services. With the repositioning and investment in our new North American sales teams and our global BestShoring business model in place our strategy is designed to leverage the unique capabilities of our global team of subject matter/domain experts and infrastructure to support our flagship products and customers while ensuring an experienced local project management presence dedicated to each deployment," concluded Mr. Ghauri.
About NetSol Technologies Inc.
NetSol Technologies (NASDAQ: NTWK) (DIFX: NTWK) is a worldwide provider of global business services and enterprise application solutions. NetSol uses its BestShoring(TM) practices and highly experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Organized into specialized practices, these product and services offerings include portfolio management systems for the financial services industry, consulting, custom development, systems integration, and technical services for the global Healthcare, Insurance, Real Estate, and Technology markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 279001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Level 5 assessments, a distinction shared by fewer than 100 companies worldwide. NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial institutions, technology providers, and governmental agencies. Headquartered in Calabasas, California, NetSol Technologies has operations and offices in London, San Francisco, Sydney, Beijing, Bangkok, and Lahore. To join the NetSol Technologies Inc. email distribution list please visit: http://www.b2i.us/irpass.asp?BzID=897&to=ea&s=0.
To learn more about NetSol Technologies Inc, visit www.netsoltech.com
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 "believe," "expect," "anticipate," "intend," variations of such words, and similar expressions, identify forward-looking statements, 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.
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NetSol Technologies to Initiate Fiscal Year 2009 Financial Guidance on July 28
CALABASAS, CA -- (MARKET WIRE) -- 07/17/08 -- NetSol Technologies, Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and enterprise application solutions, today announced the Company will issue financial guidance for its fiscal year 2009 on July 28, 2008, reflecting the period ending June 30, 2009. The Company's financial guidance for its fiscal year 2009 will be released over the news wires and posted on the corporate Website.
Najeeb Ghauri, CEO and Chairman of NetSol Technologies, Inc., stated, "Building on the strength of our revenue and profitability performance in the fiscal year 2008, and based on our positive initial outlook for significant additional growth in fiscal 2009, we look forward to finalizing our financial planning process and updating our shareholders with our top and bottom line growth expectations."
About NetSol Technologies, Inc.
NetSol Technologies (NASDAQ: NTWK) (DIFX: NTWK) is a worldwide provider of global business services and enterprise application solutions. NetSol uses its BestShoring(TM) practices and highly-experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Organized into specialized practices, these product and services offerings include portfolio management systems for the financial services industry, consulting, custom development, systems integration, and technical services for the global Healthcare, Insurance, Real Estate, and Technology markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 279001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Level 5 assessments, a distinction shared by fewer than 100 companies worldwide. NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial institutions, technology providers, and governmental agencies. Headquartered in Calabasas, California, NetSol Technologies has operations and offices in London, San Francisco, Sydney, Beijing, Bangkok, and Lahore. To join the NetSol Technologies, Inc. email distribution list please visit: http://www.b2i.us/irpass.asp?BzID=897&to=ea&s=0.
To learn more about NetSol Technologies, Inc., visit www.netsoltek.com
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 "believe," "expect," "anticipate," "intend," variations of such words, and similar expressions, identify forward-looking statements, 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.
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NetSol Technologies Europe Launches LeaseSoft Multi-Product Strategy With a Recent Multi-Million Dollar Agreement With a Major European Bank Best of Breed Solutions for European Based Auto Leasing and Asset Finance Businesses Builds Momentum With Recent Win
CALABASAS, CA -- (MARKET WIRE) -- 07/14/08 -- NetSol Technologies, Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and enterprise application solutions, today announced that its European division has successfully launched its multi-product strategy in Europe by signing a recent multi-million dollar agreement with a major European Bank, reflecting an enhanced ability to service the auto leasing and asset finance markets in Central and Eastern Europe.
NetSol's European strategy to offer Best of Breed leasing and asset finance solutions leverages LeaseSoft's success in the captive auto finance business in Asia Pacific. LeaseSoft has become the premier solution in the Asia Pacific region and the recent launch of additional LeaseSoft application modules into the European market provides the opportunity to generate significant new revenue streams for the Company, as demonstrated by the recently signed LeaseSoft agreement with a major European bank.
Najeeb Ghauri, CEO and Chairman of NetSol Technologies, Inc., commented, "Our recent LeaseSoft win with a major European bank is a strong vindication of our strategy to leverage our global expertise to develop and market regional solutions while successfully servicing our clients' specific needs. Our LeaseSoft solutions, with enhanced business coverage for the European markets, are geared to provide a quick ROI to our clients as well as generate a new revenue driver for the group. The new European LeaseSoft multi-product portfolio has gathered strong initial traction, in a relatively short time, and reflects the growing strength of our product and customer presence in Europe."
LeaseSoft shortens the time to retail and wholesale markets by providing flexibility in configuring financial products and enhances organizational productivity through efficiently managing the complete lifecycle of the contract in an extremely cost effective way. NetSol's LeaseSoft product is typically sold for a license fee in excess of $1 million, depending upon the size of the clients' portfolio and number of users. Additional revenue is generated from customization, consultancy and maintenance services over the lifespan of the LeaseSoft installation.
The LeaseSoft Credit Application Processing System (CAPS) is designed to cater to the needs of the leasing and finance industry, handling incoming credit applications from various stakeholders, gathering relevant information through different interfaces and evaluating the worthiness of the credit though financial analyses as well as an efficient Point Scoring System.
The LeaseSoft Contract Management System (CMS) offers comprehensive portfolio management to support a full range of functionality required by the asset finance companies. CMS supports general-purpose banking, vendor and captive finance companies and provides the solution for medium to high volume installment credit lenders specifically designed for leasing, hire purchase, operating leasing, motor and retail finance and corporate products.
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NetSol Technologies to Commence Trading on the Dubai International Financial Exchange (DIFX) on June 16 NetSol Dual Listed Shares Will Trade on the DIFX Under the Trading Symbol "NTWK"
CALABASAS, CA -- (MARKET WIRE) -- 06/16/08 -- NetSol Technologies Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and enterprise application solutions, announced today that it is scheduled to commence trading of its dual-listed common shares on the Dubai International Financial Exchange (DIFX) on Monday, June 16, 2008. NetSol will trade on the DIFX under the symbol "NTWK", complementing the Company's current listing on the NASDAQ Capital Market.
"It is with great excitement that we look to initiate trading of NetSol common shares on the DIFX. Our dual listing on the DIFX, the first by a U.S. company, represents an important milestone in our corporate history and supports NetSol's strategic mission to further expand our brand visibility and investor base in the United Arab Emirates (UAE) and the broader Middle East region. Parallel to the dynamic growth we are seeing the in region, NetSol seeks to become a market leader in the region's lease and asset-based financial software market as well as a major provider of Global Business Services to the region," said Mr. Najeeb Ghauri, chairman and chief executive officer of NetSol Technologies. "I would also like to thank Unicorn Consulting Inc., a GCC/UAE business advisory firm who helped organize strategy and logistics in Dubai. I would also like to especially thank Joe Jaigobind formerly of Maxim Group, now at Rodman & Renshaw, for his counsel and guidance in helping us move successfully through the DIFX listing process."
Per E. Larsson, chief executive of the DIFX, stated, "As a high technology company, NetSol is a significant addition to the opportunities for regional investors on the DIFX."
"By creating NASDAQ OMX we are now able to offer listing opportunities in the U.S., Europe and Middle East. We are very pleased that as a NASDAQ listing company Netsol Technologies has chosen to expand their presence to additional NASDAQ OMX markets. We hope that more companies will follow Netsol Technologies' example in order to attract investors on a global scale," stated Bruce Aust, Executive Vice President of NASDAQ OMX Corporate Client Group.
NetSol Technologies will hold a reception and press conference at the Dubai International Financial Centre (DIFC) in Dubai the morning of June 16, 2008 to correspond with the initiation of trading on the DIFX.
NetSol has engaged Computershare Limited ("Computershare"), a leading financial market services and technology provider for the global securities industry, to help facilitate the transfer of shares between the U.S. and Dubai markets. Market participants may utilize Computershare's unique xSettle web-based service to expedite cross-border settlement between the two markets.
To take full advantage of Computershare's global reach, NetSol has also appointed Computershare as its new US Transfer Agent, to be effective in the coming weeks. For more details please visit Computershare's corporate website at www.computershare.com, or contact Computershare's global transaction unit:
Email: USAllGlobalTransactionTeam@computershare.com
Phone: 877-624-5999 (Toll free) or 781-575-4086 (Local)
About Dubai International Financial Exchange (DIFX)
The DIFX is the international financial exchange serving the region between Western Europe and East Asia. It welcomes local as well as global issuers that seek regional and international investment. The exchange currently lists shares, structured products, Sukuk (Islamic bonds), and conventional bonds.
The DIFX opened in September 2005 and currently has 22 Members -- ABN AMRO, Arbuthnot Securities, Barclays Capital, Citigroup, Credit Suisse, Daman Securities International, Deutsche Bank, EFG-Hermes, Gulf National Securities Centre International, Hichens, Harrison & Co, HSBC, ING Bank NV, Jefferies International, J.P. Morgan Securities, KAS BANK, MAC Capital, Morgan Stanley, Merrill Lynch, Mashreq Capital (DIFC), NBD Investment Bank, SHUAA Capital, and UBS.
The majority shareholder of the DIFX is Borse Dubai with a two-thirds stake. NASDAQ OMX Group owns one third of the stake. The regulator of the DIFX is the Dubai Financial Services Authority (DFSA). The DIFX is located in the Dubai International Financial Centre (DIFC).
For more information, visit www.difx.ae
About Computershare
Computershare (ASX: CPU) is a global leader in share registration, employee equity plans, proxy solicitation and other specialized financial, governance, and communication services. Many of the world's largest companies employ our innovative solutions to maximize the value of their relationships with investors, employees, customers, and members. Computershare has approximately 10,000 employees across the world and serves 14,000 corporations and 100 million shareholders and employee accounts in 17 countries across five continents.
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NetSol Technologies Announces Approval to Dual List on the Dubai International Financial Exchange (DIFX) Listing to Mark First Ever U.S. Company to Dual List on DIFX Exchange; Current Float Available, No New Shares Offered
CALABASAS, CA -- (MARKET WIRE) -- 06/05/08 -- NetSol Technologies Inc. ("NetSol") (NASDAQ: NTWK), a worldwide provider of global business services and enterprise application solutions, announced it has received approval to become dual-listed for trading on the Dubai International Financial Exchange (DIFX). Pending finalization with the DIFX, NetSol will commence trading on the DIFX under the symbol NTWK, complementing the Company's current NASDAQ listing where its common shares have traded since 1998.
"The approval of NetSol common shares to list for trading on the Dubai International Financial Exchange reflects the further globalization of our business and serves as an excellent complement to the existing trading liquidity of our shares on NASDAQ," said Mr. Najeeb Ghauri, chairman and CEO of NetSol Technologies. "Being the first U.S.-listed company to go live with a dual listing on the DIFX will help broaden our investor base within this dynamic region, as well as increase our brand visibility within the international markets. NetSol plans to expand its business in the fast growing UAE market and the broader gulf region by introducing its enterprise solutions and services, supported by our plan to establish an office in Dubai in order to best leverage these new growth opportunities. We recently announced our first major client win in the Middle East, and our goal is to become a market leader in lease and asset-based financial software as well as a major provider of Global Business Services in this key region." The secondary listing of NetSol on the DIFX will bear similar reporting and disclosures requirements as in the United States.
About Dubai International Financial Exchange (DIFX)
The DIFX is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as international issuers that seek regional and international investment. The exchange currently lists shares, structured products, Sukuk (Islamic bonds) and conventional bonds.
The DIFX opened in September 2005 and currently has 22 Members -- ABN AMRO, Arbuthnot Securities, Barclays Capital, Citigroup, Credit Suisse, Daman Securities International, Deutsche Bank, EFG-Hermes, Gulf National Securities Centre International, Hichens, Harrison & Co, HSBC, ING Bank NV, Jefferies International, J.P. Morgan Securities, KAS BANK, MAC Capital, Morgan Stanley, Merrill Lynch, Mashreq Capital (DIFC), NBD Investment Bank, SHUAA Capital and UBS.
Equities on the DIFX -- Albaraka Banking Group (ordinary shares), Boulder Steel (ordinary shares), Depa (ordinary shares), DP World (ordinary shares), Citigold Corporation (ordinary shares), Fortune Management (ordinary shares), Gold Fields (American depositary shares), Hikma Pharmaceuticals (global depositary receipts), Kingdom Hotel Investments (ordinary shares), Man Industries (India) (global depositary receipts), Monarch Gold Mining Company (ordinary shares), Sphere Investments (ordinary shares); Unigold Inc (ordinary shares).
The majority shareholder of the DIFX is Borse Dubai with a two-thirds stake. NASDAQ OMX Group owns one third of the shares. The regulator of the DIFX is the Dubai Financial Services Authority (DFSA). The DIFX is located in the Dubai International Financial Centre (DIFC).
For more information, visit www.difx.ae.
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NetSol Technologies Reports Third Quarter Fiscal Year 2008 Financial Results
Revenues Increased 19% Year-Over-Year to $9.1 Million; Gross Margin Improved to 56%; Net Income Increased to $2.3 Million or $0.09 per Diluted Share; EBITDA Increased to $3.2 Million
CALABASAS, CA -- (MARKET WIRE) -- 05/13/08 -- NetSol Technologies Inc. ("NetSol") (NASDAQ: NTWK), a worldwide provider of global business services and enterprise
application solutions, today announced financial results for the third
quarter of fiscal year 2008, ending March 31, 2008.
Third Quarter Fiscal Year 2008 Consolidated Financial Highlights
-- Revenues increased 19% to $9.1 million
-- Services increased 23% to $4.6 million
-- License fees increased 17% to $3.0 million
-- Maintenance fees increased 11% to $1.5 million
-- Gross margin increased to 56% compared to 48% in the same period a year
ago
-- Operating income increased 245% year-over-year to $1.8 million
-- GAAP net income increased to $2.3 million, or $0.09 per diluted share,
versus a loss of $229,000, or a loss of ($0.01) per diluted share, in
the same period a year ago
-- EBITDA totaled $3.2 million, or $0.13 per diluted share, versus EBITDA
of $676,000, or $0.04 per diluted share, in the same period a year ago
-- Company reiterated guidance for fiscal year 2008: Annual revenue growth
between 25% to 30% and diluted earnings per share between $0.28 and
$0.32
Najeeb Ghauri, chairman and chief executive officer, commented, "Our third
quarter results provide an excellent start to the second half of fiscal
2008, which is historically NetSol's stronger half-year period. With
double-digit year-over-year growth in services, licenses, and maintenance
fees translating into a significant rise in profitability, we remain on
track to achieve our full year top and bottom line financial objectives.
Complementing our significant financial progress, we recently launched our
new BestShoring(TM) strategic initiative that represents our best practices
approach to delivering our customers the BestSolution(TM). Unlike
traditional outsourcing offshore vendors, BestShoring(TM) reflects our
ability to draw upon NetSol's global delivery infrastructure, expertise,
and workforce to construct the best possible solution at the best possible
price.
"Additionally, during the quarter we made key strategic investments in our
North American operations to strengthen and expand our presence in the
region, a critical market for NetSol's future growth. To support this
effort we made several key North American management appointments,
including Greg Brinton as head of sales and Morgan Rees as senior vice
president of marketing, working under the leadership of Mitch Van Wye, our
chief operating officer in the region. We see these additions to NetSol's
management, as well as our investments in infrastructure, as critical to
supporting our long-term growth throughout the Americas, as well as
supporting our new globally-focused BestShoring(TM) customer solutions. We
are offering BestShoring(TM) enterprise solutions and global business
services to both new clients in various vertical markets and our 35 plus
existing clients in North America.
"As a global enterprise, it is NetSol's goal to progress with our
operational objectives for each division while sustaining profitability and
delivering excellent financial results. NetSol's double-digit revenue
growth and strong net income performance reflect broad-based success
towards our objectives of improving margins, effectively leveraging our
worldwide infrastructure, and improving operating efficiencies while
expanding each of our division's revenue streams," concluded Mr. Ghauri.
NetSol reported consolidated revenues of $9.1 million for the third quarter
of fiscal year 2008, a 19% increase compared to the $7.6 million in
revenues reported for the same period a year ago. Consolidated gross profit
for the third quarter was approximately $5.1 million, or 56% of revenues.
GAAP (Generally Accepted Accounting Principles) net income for the third
quarter of fiscal year 2008 was approximately $2.3 million, or $0.09 per
diluted share, which compares to GAAP net loss of $229,000, or a loss of
$0.01 per diluted share, in the same period of fiscal year 2007. NetSol
reported EBITDA of $3.2 million, or $0.13 per diluted share, for the third
quarter of fiscal year 2008 compared to EBITDA of $0.7 million, or $0.04
per diluted share, in the same period a year ago.
EBITDA is defined as earnings before interest, taxes, depreciation and
amortization. The Company uses EBITDA as a measure of the Company's
operating trends. Investors are cautioned that EBITDA is not a measure of
liquidity or of financial performance under Generally Accepted Accounting
Principles (GAAP). The EBITDA numbers presented may not be comparable to
similarly-titled measures reported by other companies. EBITDA, while
providing useful information, should not be considered in isolation or as
an alternative to net income or cash flows as determined under GAAP.
Consistent with the SEC Regulation G, the non-GAAP measures in this press
release have been reconciled to the nearest GAAP measure, and this
reconciliation is located under the financial table heading "Reconciliation
to GAAP."
NetSol ended the third quarter of fiscal year 2008 with approximately $4.8
million in cash and cash equivalents.
Fiscal Third Quarter 2008 Business Highlights
-- Ranked in Software Magazine's Software 500 list of the world's largest
software and service providers, joining the Software 500 list for the first
time this year with a rank of 340 worldwide.
-- Had NetSol's Lahore-based IT development campus, "NetSol Village,"
achieve ISO 27001 certification from the International Organization for
Standardization (ISO), the world's largest developer and publisher of
International Standards.
-- Secured a contract valued at approximately $1.5 million with one of
the largest leasing companies in the Middle East.
-- Sold a new LeaseSoft license in China to a major European auto
manufacturer, maintaining robust momentum in the Chinese market.
-- Awarded a contract for the implementation of a Land Record Management
Information System (LRMIS) for the Islamabad Capital Territory, Pakistan,
the second LRMIS project NetSol has been awarded.
-- Launched the new LeasePak "Asset Focus Module," giving vehicle finance
and commercial equipment finance product managers a robust means for
tracking the revenue performance of financed assets.
-- Successfully implemented the LeaseSoft product suite for Dongfeng-
Nissan Automotive Finance (DNAF) China.
-- Had Venture Finance, a subsidiary of ABN Amro, go live with LeaseSoft
for its Block Discounting portfolio.
First Nine Months of Fiscal Year 2008 Consolidated Financial Highlights
-- Revenues for the first nine months increased 26% to $26.1 million
-- Service fees increased 40% to $13.8 million
-- License fees increased 13% to $7.8 million
-- Maintenance fees increased nearly 14% to $4.6 million
-- Gross margin improved to 58%, compared to 50% for the same nine months
period a year ago
NetSol reported consolidated revenues of $26.1 million for the first nine
months of fiscal year 2008, a 26% increase compared to the $20.7 million in
revenues reported for the same period in fiscal year 2007. Consolidated
gross profit for the first nine months was $15.1 million, or 58% of
revenues.
GAAP net income for the first nine months of fiscal year 2008 was
approximately $5.2 million, or $0.21 per diluted share, compared to a net
loss of $6.2 million, or ($0.35) per diluted share, in the same period of
fiscal year 2007. EBITDA increased to $8.0 million, or $0.33 per diluted
share, as compared to an EBITDA loss of $3.4 million, or ($0.18) per
diluted share, in the same period a year ago.
Conference Call & Webcast Information
NetSol will host a conference call at 11:00 a.m. ET (8:00 a.m. PT) to
review the results. Najeeb Ghauri, chairman and chief executive officer,
and Tina Gilger, chief financial officer, will host the call, which will be
webcast live. The webcast and a supporting slide presentation will be made
available online at http://www.netsoltek.com/investors/investor_relations.htm. Telephone access
to the conference call is available in North America by dialing +1 (877)
407-0782 or internationally by dialing +1 (201) 689-8567.
An audio replay of the conference call will be available approximately one
hour following the conclusion of the call and will be available for 30
days. To access the replay in North America dial +1 (877) 660-6853, or when
calling internationally dial +1 (201) 612-7415, using replay account code #
286 and conference ID # 283654. An archived replay of the conference
webcast will also be available on the NetSol Technologies web site at http://www.netsoltek.com/investors/investor_relations.htm.
About NetSol Technologies
NetSol Technologies (NASDAQ: NTWK) is a worldwide provider of global
business services and enterprise application solutions. NetSol uses its
BestShoring(TM) practices and highly-experienced resources in analysis,
development, quality assurance, and implementation to deliver high-quality,
cost-effective solutions. Organized into specialized practices, these
product and services offerings include portfolio management systems for the
financial services industry, consulting, custom development, systems
integration, and technical services for the global Healthcare, Insurance,
Real Estate and Technology markets. NetSol's commitment to quality is
demonstrated by its achievement of the ISO 9001, ISO 279001, and SEI
(Software Engineering Institute) CMMI (Capability Maturity Model) Level 5
assessments, a distinction shared by fewer than 100 companies worldwide.
NetSol Technologies' clients include Fortune 50 manufacturers, global
automakers, financial institutions, technology providers, and governmental
agencies. Headquartered in Calabasas, California, NetSol Technologies has
operations and offices in London, San Francisco, Sydney, Beijing, Bangkok
and Lahore. To join the NetSol Technologies Inc. email distribution list
please visit: http://www.b2i.us/irpass.asp?BzID=897&to=ea&s=0.
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 "believe," "expect,"
"anticipate," "intend," variations of such words, and similar expressions,
identify forward looking statements, 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.
NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
For the Three Months For the Nine Months
Ended March 31, Ended March 31,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Net Revenues:
Licence fees $ 2,998,867 $ 2,554,289 $ 7,769,226 $ 6,851,496
Maintenance fees 1,482,654 1,335,893 4,556,450 3,990,096
Services 4,585,292 3,725,784 13,800,844 9,864,055
------------ ------------ ------------ ------------
Total revenues 9,066,813 7,615,966 26,126,520 20,705,647
Cost of revenues
Salaries and
consultants 2,620,722 2,234,809 7,342,743 6,608,606
Travel 394,841 447,288 972,998 1,195,315
Repairs and
maintenance 99,262 133,961 332,448 313,514
Insurance 30,005 51,294 153,760 153,595
Depreciation and
amortization 316,652 279,405 847,288 693,703
Other 522,013 790,927 1,341,513 1,479,478
------------ ------------ ------------ ------------
Total cost of
sales 3,983,495 3,937,684 10,990,750 10,444,211
------------ ------------ ------------ ------------
Gross profit 5,083,318 3,678,282 15,135,770 10,261,436
Operating expenses:
Selling and
marketing 898,686 825,586 2,817,908 2,105,920
Depreciation and
amortization 477,630 483,801 1,422,181 1,389,704
Bad debt expense - (231) 3,277 117,267
Salaries and
wages 1,034,784 915,481 2,758,434 2,914,707
Professional
services,
including
non-cash
compensation 114,436 254,359 413,437 774,203
General and
adminstrative 792,499 687,881 2,287,693 2,202,182
------------ ------------ ------------ ------------
Total operating
expenses 3,318,035 3,166,877 9,702,930 9,503,983
------------ ------------ ------------ ------------
Income from
operations 1,765,283 511,405 5,432,840 757,453
Other income and
(expenses):
Gain (loss) on
sale of assets (891) (6,729) (33,044) (19,067)
Beneficial
conversion
feature - - - (2,208,334)
Amortization of
debt discount
and capitalized
cost of debt - - - (2,803,691)
Liquidation
damages - (47,057) - (180,890)
Fair market value
of warrants
issued - (33,987) - (33,987)
Interest expense (121,651) (83,819) (544,597) (543,342)
Interest income 84,363 46,867 159,801 265,916
Gain on sale of
subsidiary
shares 1,240,808 - 1,240,808 -
Other income and
(expenses) 447,889 10,081 709,113 88,935
------------ ------------ ------------ ------------
Total other
income
(expenses) 1,650,518 (114,644) 1,532,081 (5,434,460)
------------ ------------ ------------ ------------
Net income (loss)
before minority
interest in
subsidiary 3,415,801 396,761 6,964,921 (4,677,007)
Minority interest
in subsidiary (1,098,703) (568,237) (1,756,509) (1,374,081)
Income taxes (15,314) (57,655) (46,272) (126,620)
------------ ------------ ------------ ------------
Net income (loss) 2,301,784 (229,131) 5,162,140 (6,177,708)
Dividend required
for preferred
stockholders (33,508) (94,088) (145,033) (159,686)
Subsidiary dividend
(minority holders
portion) - - (817,173) -
Bonus stock
distribution
(minority holders
portion) - - (545,359) -
------------ ------------ ------------ ------------
Net income (loss)
applicable to
common
shareholders 2,268,276 (323,219) 3,654,575 (6,337,394)
Other comprehensive
gain:
Translation
adjustment (910,838) 81,564 (1,401,831) 203,343
------------ ------------ ------------ ------------
Comprehensive
income (loss) $ 1,357,438 $ (241,655) $ 2,252,744 $ (6,134,051)
============ ============ ============ ============
Net income (loss)
per share:
Basic $ 0.09 $ (0.02) $ 0.21 $ (0.36)
============ ============ ============ ============
Diluted $ 0.09 $ (0.01) $ 0.21 $ (0.35)
============ ============ ============ ============
Weighted average
number of shares
outstanding
Basic 25,205,995 18,311,290 23,686,204 17,680,115
Diluted 25,665,924 18,311,290 24,146,133 17,680,115
NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET ? AS OF MARCH 31, 2008
(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 4,848,513
Accounts receivable, net of allowance for
doubtful accounts of $168,443 10,227,903
Revenues in excess of billings 12,006,231
Other current assets 2,933,047
-----------
Total current assets 30,015,694
Property and equipment, net of accumulated
depreciation 8,153,405
Other assets, long-term 800,435
Intangibles:
Product licenses, renewals, enhancements,
copyrights, trademarks, and tradenames, net 9,137,381
Customer lists, net 1,906,422
Goodwill 7,786,032
-----------
Total intangibles 18,829,835
------------
Total assets $ 57,799,369
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 3,323,046
Current portion of loans and obligations under
capitalized leases 605,551
Other payables - acquisitions 83,399
Unearned revenues 3,616,555
Due to officers 184,173
Dividend to preferred stockholders payable 33,508
Loans payable, bank 1,977,689
-----------
Total current liabilities 9,823,921
Obligations under capitalized leases, less
current maturities 270,927
Long term loans; less current maturities 552,166
------------
Total liabilities 10,647,014
Minority interest 5,834,732
Commitments and contingencies
Stockholders' equity:
Preferred stock, 5,000,000 shares authorized;
1,920 issued and outstanding 1,920,000
Common stock, $.001 par value; 45,000,000
shares authorized; 25,247,568 issued and
outstanding 25,248
Additional paid-in-capital 75,299,379
Treasury stock (35,681)
Accumulated deficit (33,477,767)
Stock subscription receivable (600,907)
Common stock to be issued 64,612
Other comprehensive loss (1,877,261)
-----------
Total stockholders' equity 41,317,623
------------
Total liabilities and stockholders' equity $ 57,799,369
============
NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Nine Months
Ended March 31,
2008 2007
------------ ------------
Cash flows from operating activities:
Net income (loss) applicable to common
shareholders $ 5,162,140 $ (6,177,708)
Adjustments to reconcile net income (loss)
applicable to common
shareholders to net cash provided by
(used in) operating activities:
Depreciation and amortization 2,269,469 2,083,407
Bad debt expense 3,277 117,267
Loss on sale of assets 33,044 19,067
Gain on sale of subsidiary shares in
Pakistan (1,240,808) -
Minority interest in subsidiary 1,756,509 1,374,081
Stock issued for services 48,163 88,099
Stock issued for convertible note payable
interest - 311,868
Fair market value of warrants and stock
options granted 24,320 33,987
Beneficial conversion feature - 2,208,334
Amortization of debt discount and
capitalized cost of debt - 2,803,691
Changes in operating assets and
liabilities:
Decrease/(increase) in accounts
receivable (2,087,736) (1,913,135)
Increase in other current assets (4,885,181) (2,793,410)
(Decrease)/increase in accounts payable
and accrued expenses (510,968) 1,716,251
------------ ------------
Net cash provided by (used in) operating
activities 572,229 (128,201)
Cash flows from investing activities:
Purchases of property and equipment (1,985,651) (1,282,427)
Sales of property and equipment 120,436 208,419
Net proceeds of certificates of deposit - 1,737,481
Payment for acquisition (879,007) (4,027,753)
Increase in intangible assets (2,219,673) (2,001,502)
------------ ------------
Net cash used in investing activities (4,963,895) (5,365,782)
Cash flows from financing activities:
Proceeds from sale of common stock 1,500,000 30,093
Proceeds from the exercise of stock options 2,800,917 704,250
Proceeds from sale of subsidiary stock 1,765,615 -
Finance costs incurred for sale of common
stock (10,000) -
Purchase of treasury stock (25,486) -
Reduction in restricted cash - 4,533,555
Proceeds from loans from officers - 165,000
Proceeds from bank loans 3,862,759 -
Payments on bank loans (1,245,846) -
Capital lease obligations & loans (net) (3,462,334) 874,128
------------ ------------
Net cash provided by financing activities 5,185,625 6,307,026
Effect of exchange rate changes in cash 44,390 76,159
------------ ------------
Net increase in cash and cash equivalents 838,349 889,202
Cash and cash equivalents, beginning of period 4,010,164 2,493,768
------------ ------------
Cash and cash equivalents, end of period $ 4,848,513 $ 3,382,970
============ ============
NETSOL TECHNOLOGIES, INC. AND SUBSIDIARIES
RECONCILIATION TO GAAP
(UNAUDITED)
Three Months Nine Months
Ended Ended
March 31, 2008 March 31, 2008
-------------- --------------
Net income per GAAP (applicable to common
shareholders) $ 2,301,785 $ 5,162,140
Income taxes 15,314 46,272
Depreciation and amortization 794,282 2,285,985
Interest expense 121,651 544,597
-------------- --------------
EBITDA income $ 3,233,032 $ 8,038,994
============== ==============
Weighted average number of shares outstanding
Basic 25,205,995 23,686,204
Diluted 25,665,924 24,146,133
-------------- --------------
Basic EBITDA EPS $ 0.13 $ 0.34
============== ==============
Diluted EBITDA EPS $ 0.13 $ 0.33
============== ==============
Contacts:
NetSol Technologies, Inc.
Tina Gilger
Chief Financial Officer
Tel: +1 818-222-9195, x112
Investor Relations
Christopher Chu
Grayling Global
Tel: +1-646-284-9426
Email: cchu@hfgcg.com
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NetSol Technologies to Announce Third Quarter Fiscal Year 2008 Financial Results on May 13, 2008
CALABASAS, CA -- (MARKET WIRE) -- 04/30/08 -- NetSol Technologies Inc. ("NetSol") (NASDAQ: NTWK), a multinational provider of IT services and enterprise software to the financial services industry, plans to announce its third quarter fiscal year 2008 financial results the morning of Tuesday, May 13, 2008.
Following the distribution of the press release, NetSol will host a conference call at 11:00 a.m. ET (8:00 a.m. PT) to review the results. Najeeb Ghauri, chairman and chief executive officer, and Tina Gilger, chief financial officer, will host the call, which will be webcast live. The webcast and a supporting slide presentation will be made available online at http://www.netsoltek.com/investors/investor_relations.htm. Telephone access to the conference call is available in North America by dialing +1 (877) 407-0782 or internationally by dialing +1 (201) 689-8567.
An audio replay of the conference call will be available approximately one hour following the conclusion of the call and will be available for 30 days. To access the replay in North America dial +1 (877) 66 | | | | | |
