(MENAFN Press) NetSol Technologies Inc. NetSol(NASDAQ CM: NTWK) (NASDAQ DUBAI: NTWK), a U.S. corporation providing global business services and enterprise application solutions to private and public sector organizations worldwide, today announced fourth quarter financial results for fiscal year 2009, for the period ended June 30, 2009.
Fiscal Year 2009 Results
Revenues totaled 26.4 million, down 28% year-over-year
Service fees totaled 15.2 million
Maintenance fees totaled 6.5 million
License fees totaled 4.8 million
Full year GAAP net loss applicable to common shareholders of 8.2 million, or a loss of 0.30 per fully diluted share, compared to GAAP net income applicable to common shareholders of 4.8 million, or 0.19 per fully diluted share, in the year ago period
Full year EBITDA loss of 2.5 million, or EBITDA loss of 0.09 per diluted share, versus EBITDA of 9.1 million, or 0.35 per diluted share, in the year ago period
Najeeb Ghauri, NetSol Technologies chairman and chief executive officer, commented, NetSols fiscal fourth quarter revenues exceeded the high end of our sequential growth range projection, rising 36%, driven by increased license and IT services sales.
While our full year results reflect the challenges of the global economic downturn compared to a 2008 period which was the strongest in the companys history, NetSols fiscal fourth quarter results provide clear evidence that our NetSol Financial Suite„ and global BestShoring’ IT service offerings are gaining fresh momentum.
The success of our comprehensive cost efficiency measures yielded an impressive 23% reduction in fiscal fourth quarter operating expenses as compared to the year ago period.
Our more efficient operating expense base, combined with our renewed sequential revenue growth, drove material improvements in reducing the companys sequential quarterly GAAP net loss as well as supported an important return to quarterly EBITDA profitability.
I am pleased to report we enter our fiscal year 2010 with a significantly stronger pipeline, and are also seeing excellent new opportunities in the government and defense sectors.
Looking ahead to fiscal 2010, we anticipate stronger full year results in terms of top and bottom line performance.
If we couple our more efficient global operating structure with the fresh momentum on the sales side, we currently forecast a quarterly GAAP breakeven revenue run rate of approximately 8.0 million, and 6.5 million on a cash basis, concluded Mr. Ghauri.
NetSol reported consolidated revenues of 6.9 million for the fourth quarter of fiscal year 2009, representing a 35% decline as compared to the 10.5 million in revenues reported for the same period a year ago.
U.S. GAAP (Generally Accepted Accounting Principles) net loss applicable to common shareholders for the fourth quarter of fiscal year 2009 was approximately 0.9 million, or a loss of 0.03 per diluted share, which compares to GAAP net income applicable to common shareholders of 1.3 million, or 0.05 per diluted share, in the same period of fiscal year 2008.
NetSol reported EBITDA of 0.6 million, or 0.02 per diluted share, for the fourth quarter of fiscal year 2009 compared to EBITDA of 2.6 million, or 0.09 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 Companys 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.
Fourth Quarter Business Highlights
Signed a significant new NetSol Financial Suite„ contract with Minsheng Financial Leasing Company to deploy NetSols industry leading leasing suite
Secured a new licensing agreement with a major Chinese captive finance company to implement the NetSol Financial Suite„, including NetSol's flagship LeaseSoft solution
Major international automotive manufacturer signs LeaseSoft license contract for captive finance in China
Secured new European customer contract to implement Wholesale Finance System for a Netherlands based finance company
NetSol Technologies Europe wins a new contract to deploy its LeaseSoft suite at United Kingdom based nationwide loan company
NetSol and Atheeb Group form Atheeb NetSol Limited, a software engineering and joint venture company focused on Saudi Arabia, GCC, and The Middle East
NetSol and Grupo Karims form NetSol GK Latin America, an IT services and software development joint venture serving the Americas.
Announced new Neptune Software plc partnership, as well as first joint customer win, extending the reach of the NetSol Financial Suite„ and LeaseSoft Evolve product in Africa, as leasing is rapidly expanding as a financing solution across the continent
Launched beta version of smartOCI, an SAP compatible multiple catalog search engine
Subsequent to the quarter end, NetSol teamed with a top 5 U.S. defense contractor with a joint bid submitted for a significant multi-million dollar military contract in Pakistan
Conference Call & Webcast Information
Following the distribution of the fiscal fourth quarter and full year 2009 financial results, NetSol will host a conference call today at 11:00 a.m. ET (8:00 a.m. PT) to review the quarterly financial and operational performance.
Najeeb Ghauri, NetSol Technologies chairman and chief executive officer, will host the call, which will be webcast live. The webcast and a supporting slide presentation will be made available on the investor relations section of the NetSol corporate website at www.netsoltech.com.
Telephone access to the conference call will be 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 two hours following the conclusion of the call and for the following 30 day period.
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 # 331287. An archived replay of the conference webcast will also be available on the investor relations section of the NetSol corporate website at www.netsoltech.com.