SURPRISE EARNINGS EXPECTED ON 2/2/2012 THIS WEEK.....RADAR IT!!!!
HNTWK has been beaten up because of 2 consecutive loss quarters and the expectation of another loss on 2/2/2012 when the company reports 2Q 2012. However, this week's earnings will blow all expectations away as well as the current company guidance.
The clue? it's largest division just reported a blockbuster quarter this week surprising everyone.
There was a quick short covering at the end of the day today and promises to continue tomorrow.
Guidance was for a max 20% revenue growth in 2Q 2012 compared to $6.2 million reported in 1Q 2012 (or about $7.4 million and a loss). It looks now that the company will report at least $9 million and perhaps over $10 million depending on how the other global divisions have done.
NTWK continued to enjoy strong institutional support despite the pps.
Insiders keep buying in the open market like there is no tomorrow with the CEO leading the way. Insiders bought over 3 million shares in the last 2 years of over 5% of the O/S!!!
A few NTWK highlights:
- The second half of the fiscal year is historically the strongest (3Q and 4Q ahead)
- NTWK is increasing its CLOUD COMPUTING CLOUT worldwide with new products like SAP-approved smartOCI, LeasePak SaaS, NFS nextgen, and others. It's main niche market is auto leasing and financing software but it's branching into several new verticals with it's new products
- Over 150 loyal global customers including. Never lost a customer
- Over 20 Fortune 100 customers including Ford, GMC, global alliance with Mercedes Benz, BMW, Toyota, Nissan, Cisco, Citi, and many other companies in its biggest market: China
- Branching into other verticals like
* Supply Chain and Logistics (already won a multi-million dollar contract in this sector last quarter)
* Banking/lending (Minsheng Bank - China, Citi, PNB Paribas, others)
* Healthcare, Government, insurance, procurement
- Low market cap
- Very high Intellectual Property
- High Gross margins
- Growing Global presence
- Low PE
NASDAQ's NTWK, NetSol Technologies, Inc. (www netsoltech com), 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, Rio de Janeiro, and Riyadh.
2/2/2112 2Q 2012 Results:
38% sequential revenue increase and a 1c/share net income. Beat 15 – 20% revenue increase guidance and a certain loss
Guidance: Stronger second half and profitable for the year. Returning to double digit growth in 2013 and beyond
• VERY BULLISH about new cloud computing products and smart OCI in particular. Regarding smartOCI – the SAP-certified procurement catalog search engine and catalog management system.
1. NTWK recently announced a multi-million dollar smartOCI contract with US-based LTC Supply Source. This is the largest smartOCI contract to date.
2. Have signed several implementation agreements with Fortune 500 companies and expect revenues to start pouring in
3. smartOCI is attracting top industry talent. Recently hired a well-known Silicon Valley entrepreneur as VP of Technology. They also hired 9 new programmers to keep up with demand
4. smartOCI seamlessly integrates with SAP’s e-procurement networks that cover thousands of customers worldwide
5. SAP and smartOCI are a win-win combination because it improves SAP’s customer satisfaction and loyalty
6. So far, SAP’s e-procurement managers have been providing many leads to NTWK and NTWK has not even start it’s full-fledge marketing program to launch smartOCI yet! Imagine what will happen then..:)
7. 25 active smartOCI leads in the US and Europe
8. smartOCI potential market is over 25,000 SAP B2B customers worldwide
• Also VERY BULLISH on new cloud products LeasePak SaaS and NFS Nextgen with a growing pipeline for those products. Already announced LeasePak contracts and more to come. Same thing with NFS Nextgen (go back to recent announcements for details)
• Big-License legacy NFS is staging a comeback as the pipeline grown and recent announcements show (Malaysia contract with Mercedes Benz, one of over a dozen per their global alliance. Others include China, India, etc)
• Established delivery centers in Bangkok and Beijing to ease customers concerns with Pakistan’s geopolitical issues. Bangkok implemented NFS in India for Mercedes and is also doing the Malaysia project
Beat guidance/expectations today......nice consolidation going on......will rocket up in next few days....check it out
revenues: $8.61 million up 38% beating 15 - 20% guidance
net income: 1c/share vs expected certain loss
guidance: stronger 2nd half and profitable for the entire year
remember that ntwk was $2.4 this year
Great call on 2Q 2012 earnings, their CC was very bullish. Amazing that such a small company has such strong ties with SAP
NTWK increased sequential revenues 38% compared to a 15% - 20% guidance. They also reported a 1c/share net income surprising the street.
Guidance calls for a stronger second half of fiscal 2012 and profitable for the year
NTWK will start moving towards $1+ soon. It was $2.4 a year ago.
Good luck!!! 2012 is looking like a mini bull market.