NTWK $6.4 Reports Record Fiscal 1Q 2013....$11.1 M Revenues vs. $6.2 M a Year Ago....12c/share Net Income vs. 30c/share Loss in 1Q 2012. Reiterates $49 M 2013 Revenue Guidance for 2013 or 45% Revenue Growth Over 2012....Projects 80c/share - $1/share Net Income For 2013.....Exponential Growth of Cloud Divisions fueling Profitable Growth.....No.1 Worldwide in Leasing/Financing Software......Only $6 PE .......4 M Share FLOAT.
TARGET $15+ BY YEAR END.........AVERAGE ANALYST TARGET PRICE: $16/SHARE
TODAY's EARNINGS RELEASE:
Record First-Quarter Revenue Reaches $11.1 Million vs $6.2 Million Fiscal 1Q 2012
Net Income $929,000, or $0.12 per Diluted Share vs 30c/share loss in 1Q 2013
EBITDA Advances to $2.5 Million, or EBITDA per Diluted Share of $0.33
Reiterates Fiscal 2013 Annual Revenue Guidance of $46 million to $49 million;
Earnings per Diluted Share of $0.80 to $1.00
CALABASAS, Calif., Nov. 14, 2012 (GLOBE NEWSWIRE) -- NetSol Technologies, Inc. (NTWK), a worldwide provider of global IT and enterprise application solutions, today reported financial results for its fiscal 2013 first quarter ended September 30, 2012.
Fiscal 2013 First-Quarter Financial Results
Total first quarter revenue rose to $11.1 million, the highest first quarter in the company's history, as a result of higher services revenue and a recovery in licensee revenue. This compares with total revenue of $6.2 million in the first quarter of fiscal 2012.
"NetSol's record first quarter revenue underscores the success of our initiative to build out service and delivery capabilities in Bangkok and China," said Najeeb Ghauri, CEO of NetSol. "Our record results also reinforce the continued demand for our core leasing solution throughout Asia, where we have recently completed a number of NFS(TM) implementations."
License revenue increased to $3.2 million from $1.1 million in the comparable first quarter of fiscal 2012, representing new agreements with fortune 500 companies in the Asia Pacific Region.
Maintenance revenue was $2.0 million, approximately in line with the same period last fiscal year.
Services revenue grew to $5.8 million from $3.1 million for the first quarter of fiscal 2012 as a result of new consulting and customization projects and increased contribution from NetSol's Virtual Leasing Services subsidiary jointly acquired during the second quarter of fiscal 2012.
Total operating expenses for the fiscal 2013 first quarter amounted to $3.8 million, down sequentially from the fourth quarter, although up from $3.0 million in the fiscal 2012 first quarter. The increase is principally due to hiring additional NFS and Vroozi personnel and larger headcount as a result of the VLS acquisition.
Operating income for the first quarter of fiscal 2013 rose to $1.5 million, compared with an operating loss of $826,000 in the first quarter of fiscal 2012.
NetSol achieved net income of $929,000 for the fiscal first quarter, equal to $0.12 per diluted share, compared with a net loss of $1.5 million, or $0.26 per share, in the comparable period of the prior fiscal year. This includes a deduction of net income by $332,000 for non-controlling interest, compared with $137,000 in the comparative period. Weighted average number of diluted shares outstanding for the period was 7.6 million shares, compared with 5.6 million shares for the first quarter of fiscal 2012.
The net EBITDA (a non-GAAP measure), was $2.5 million for the fiscal 2013 first quarter, versus a loss of $234,000 for the fiscal 2012 first quarter. The reconciliation of net EBITDA to net income, the most comparable non-GAAP financial measure, as well as a further explanation about adjusted EBITDA, is included in the financial tables at the end of this news release.
NetSol's cash and cash equivalents balance rose to $8.0 million at September 30, 2012, compared with $7.6 million at June 30, 2012.
2012 First-Quarter Highlights:
• Received new orders for NetSol Financial Suite (NFS(TM)) solution from two new customers, representing more than $4 million in combined license, maintenance, and service billings;
• Won a new contract in Europe to provide a Point-of-Sale solution to an existing bank client to support their entry into vehicle finance;
• Completed NFS implementations in China with Mercedes-Benz Leasing, Chongqing Auto Finance and JAC Santander;
• Completed a custom projects including one LeaseSoft migration project with a European Bank ;
• Secured and delivered a leasing and finance consulting project with a Mexico-based subsidiary of one of the largest commercial truck manufacturing companies in the world and completed a consulting engagement with Mercedes-Benz China;
• Signed a new contract in the area of information security with a leading telecom company in Pakistan and added a contract to implement a transport department automation system with the government of Punjab. The agreements are collectively valued at approximately $0.7 million; and,
• Added key sales, marketing, and implementation personnel to further drive global market penetration and increase delivery and support capability. Most recently, Vroozi welcomed Ivy Montgomery, formerly of SAP, as vice president of marketing.
Business and Financial Outlook
"With our growth initiatives underway, combined with our new business pipeline visibility, I am ever confident that we will hit our revenue and profitability targets for fiscal 2013, especially considering that NetSol's second half of the year has historically been a stronger period than the first half," Ghauri said.
The company maintains its financial guidance, anticipating growing total annual revenue to a range of approximately $46 million to $49 million for fiscal 2013, and achieving earnings per diluted share of approximately $0.80 to $1.00 for the year.
.........FYI.......MORE NTWK HIGHLIGHTS:
- Company projects Doubling/Tripling revenues and net income by 2015
- Significant Institutional investor ownership and growing
- Insiders bought over 5% of the Outstanding shares the last 2 years and never sold a single share
- Total share count is only 7.5 million shares. The float is only 3 million shares
- Trading at forward PE of 5
- Strong balance sheet with $1.5/share cash
- Has global agreement with Mercedes Benz - Already 7 countries with NTWK software for leasing and financing Mercedes Benz/Daimler including China, India, Japan, and others
- No.1 in China and APAC in leasing/financing software products and services.
NTWK has over 50 Fortune 100 loyal customers. Never lost a customer. None of the customers is over 5% of the total revenues - partial customer list: CitiGroup, Mercedes Benz, Santander, BMW, Volvo, Ford, GE Capital, Cisco Capital, Paribas, GMAC, Volvo, Toyota, Nissan, Hyundai, BYD, SANY Corp. China, etc.
NetSol Technologies, Inc. ((NASDAQ: NTWK) 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 the global Financial, Leasing, 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, Adelaide and Riyadh.