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JPMorgan Chase & Co. Message Board

  • ntofive ntofive Oct 31, 2012 3:28 PM Flag

    NTWK $6.45 up 5%......Preannouncement today: Record Fiscal 1Q 2013 of up to $11M vs. $6.2M in 1Q 2013..... Analyst expects 20c/share net income in 1Q 2013 vs. 30c/share loss in 1Q 2012.......Guidance for 2013 is strong with 30 - 40% revenue growth and $1/share net income.....Cloud Divisions growing exponentially........4M share float

    Target: $10+ after earnings November 14

    Analysts increased their average target price to $16 and max to $21/share after September FY 2012 earnings report.

    Preliminary earnings preannouncement today is the reason for today's start of a pre-earnings rally:

    Pre- Announcement:

    NetSol Technologies Expects Record First Quarter Revenue

    - Total Preliminary Revenue Expected in the Range of $10 to $11 Million
    - To Hold Fiscal 2013 First Quarter Results Conference Call on November 14

    CALABASAS, Calif., Oct. 31, 2012 (GLOBE NEWSWIRE) -- NetSol Technologies, Inc. (NTWK), a worldwide provider of global IT and enterprise application solutions, today provided preliminary revenue results for the first quarter ended September 30, 2012. Preliminary revenue results indicate the company's strongest first quarter ever, with revenue expected in the range of $10 million to $11 million.


    An analyst covering the stock recently upped its earnings projections for NTWK based on significant increased global demand for all of its software products and services (legacy and cloud)

    Analyst comments:

    All business lines are very strong growth across the board. Significant demand for all legacy and cloud products.

    Our price target is based on the average forward 2013 P/E multiple of 13.2X (up from 12.8X in August 2012). NTWK is trading at 6.4X our FY13 net income projections.

    EPS forecast of $0.85 per share. We applied an 11X multiple to our FY13 EPS forecast. We anticipate a richer multiple as earnings momentum builds in FY13. .

    NTWK is entering FY13 with a $25 million backlog and approximately $100 million in qualified leads. One quarter of the backlog is from four new NFS platform customer implementations that began in 4Q12.

    Regarding the fast-growing high margin Cloud Divisions:

    The new Vroozi Cloud Division contributed $1.3 million in FY12. We expect at least $4 million in FY13 and $6 million to FY14

    NTWK is entering FY13 with a $25 million backlog and approximately $100 million in qualified leads. One quarter of the backlog is from four new NFS platform customer implementations that began in 4Q12.

    In August 2011, NetSol launched its Cloud Vroozi Division, an e-procurement search tool for SAP supplier relationship management (SRM) users. SAP AG is a global vendor of enterprise management systems that has the largest market share (24%) based on a worldwide Gartner survey. Vroozi should provide sales diversification and a higher margin recurring revenue stream. The Vroozi division contributed $1.3 million in FY12 sales and is expected to grow to $4 million in revenues in 2013

    NTWK announced its 2nd Cloud Division last week offering an array of products and services to capture a greater % of the cloud applications in North America. The company is implementing this division using their significant software development capabilities and infrastructure.


    - 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.

    About NTWK:

    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.

63.98-0.35(-0.54%)11:00 AMEDT