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NetSol Technologies, Inc. Message Board

  • drbtrades drbtrades May 13, 2013 11:51 AM Flag

    Earnings

    If you actually go back and carefully listen to the earnings conference call you would understand that Netsol is doing exceptionally well. First, NTWK made a 1 time $700,000 software upgrade into the company for further expansion. If Netsol had not made that 1 time charge the EPS would have been .08 higher, or .27/EPS. Second, Netsol raised capital an issued shares of the company last September. As part of the public issuance, the purchasers had the right to exercise share options which slightly increased the outstanding shares by about 400,000... now, all conversions are complete and there will be no more dilution. Third, Netsol increased its' ownership of NTWK:PK from 55% to 65% this last quarter which will reward shareholders. Fourth, Netsol implemented a couple of $3M dollar projects a couple of quarters ago and they have only realized 1/3 of the revenue; the remaining revenue will be realized over this quarter and next quarter. Lastly, Netsol has signed (2) $10million contracts on their next generation NFS. One contract is currently implemented in the trial phase and they said they will have a "HUGE" announcement once it goes live. The terms of the second $10M contract are currently being finalized.

    In order for companies to grow, they must invest. Margins will improve as hiring is now "complete" as they stated on the call. Top line is about to get a serious ramp up over the next 4 quarters. This quarter should beat analyst projections based upon the 1 time $700,000 software investment and realizing more revenue from projects signed late last year.

    This is a very strong buying opportunity as the stock should close the $18 gap by the December, or Q2 2014.

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