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NetSol Technologies, Inc. Message Board

  • jhm212 jhm212 Sep 13, 2013 5:41 PM Flag

    The Growth Story......By the Numbers

    There are associated costs to grow a company...new hires, facilities, system upgrades etc...
    ...with this, the outstanding shares grew 18% to 9M from 7.6M a year ago...yet, as the revs grow, free cash flow will reduce the need to use shares to fund the growth.

    Here's the upside...
    Revenue YoY grew from $39.8M to $50.8M....28% growth
    License revenue grew to $17.8M from $13.4M....33% growth
    Maintenance revenue grew to $9.5M from $7.9M....20% growth
    Service revenue grew to $23.5M from $18.5M....27% growth

    Did you notice this..."Today, our new business pipeline and add-on requests from customers are stronger than ever, a fact demonstrated by the signing of more than $20 million in projects in the past two months alone," added Ghauri. "We are actively working on a number of similar game-changing deals for the company across the globe..." The only announced deal in the last 2 months was the $5M add-on with Toyota....so there's another $15M in new deals not announced....and then about $39M in total since the end of May.....yes, growing very quickly!!

    While the cash position only grew $300k to $7.9M, the growth in Operating Income jumped from $7.3M to $11.7M....huge growth at 60% YoY.

    Gross Margins improved from 54% to 55% YoY.....over the next 3 years NTWK expects this to reach 64%...yes if achieved, this will lead to large growth in earnings!

    NTWK expects to grow revenues 15-25% over the next 5 years....hmmm, at my expected 20% YoY growth...
    '14 has $61M, '15 has $73M, '16 has $88M......revs will grow rather quickly. Watch for NA revs to quickly grow, watch for new rev streams from the growing list of partnerships....hey, there's also the new mobile app that will supplement the Vroozi growth....

    Disclosure: I'm long and I now have a lot of shares. IMO, I see a double over the next 2 years.....a very nice growth story and strong ROI for new NTWK investors!!

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