The Flex cloud-based calculation engine enables affordability checks, reverse calculations and accurate contract lifecycle calculations with seamless integration into a financial institution's ecosystem. The calculation engine is part of NETSOL’s Appex Now suite of API-first products for the global finance and leasing industry.
“Appex Now’s APIs are pushing the finance and leasing industry forward. These powerful, yet simple APIs are a reflection of our dedication to innovation,” said Najeeb Ghauri, Founder and CEO of NETSOL Technologies Inc.
“Close Brothers joins other financial institutions in the United Kingdom that have gone live with our API-first calculation engine,” he added. “The customer has integrated Flex’s APIs with Salesforce as part of a new initiative to enhance the pricing process for a key broker.”
“The UK market's response to our API-first offerings reaffirms the power of a customer-centric approach and we're excited to continue spearheading innovation in this dynamic landscape,” said Darryll Lewis, Managing Director of NETSOL Europe. “We're proud to lead this charge, delivering not just products, but solutions that redefine efficiency and ease of use.”
“We have found that the Flex API integration with the Salesforce CRM is a great way to kickstart this new initiative,” said Michael Townsend, Head of Change at Close Brothers. “We look forward to building this capability out.”
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global finance and leasing industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in eleven strategically located support and delivery centers throughout the world. NETSOL helps companies transform their finance and leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.
About Close Brothers
Close Brothers Group plc is a leading UK merchant banking group providing lending, deposit taking, wealth management services and securities trading. The Group employs approximately 4,000 people, principally in the United Kingdom and Ireland. Close Brothers Group plc is listed on the London Stock Exchange and is a constituent of the FTSE 250.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
This milestone reinforces the robust alliance between NETSOL and AWS, showcasing NETSOL's expertise and success in guiding clients through the design, architecture, migration, modernization and management of their AWS workloads, thereby optimizing their cloud investments.
Attainment of the AWS Advanced Tier Services Partner status reflects NETSOL's enduring commitment to AWS, extensive experience deploying scalable customer solutions on the AWS platform, and the maintenance of a team of AWS-certified technical consultants and professionals.
“The attainment of AWS Advanced Tier Service Partner status is a source of tremendous pride for us and the leadership team,” said Najeeb Ghauri, Founder and CEO of NETSOL Technologies, Inc. “This recognition is emblematic of the numerous successful cloud transformation journeys we have embarked on with our esteemed clients and enhances our visibility in the market to connect us with potential customers looking to integrate and leverage our premier cloud services. NETSOL's unwavering customer focus, akin to that of AWS, underscores the naturalness of our partnership.”
“Our vision is to be the most trustworthy multi-cloud service provider offering end-to-end solutions and empowering our clients across the globe through the facilitation of their digital transformation,” he added.
Furrukh Sohail, Head of Cloud Services at NETSOL, commented, “The achievement of AWS Advanced Tier Services Partner status acknowledges our leadership in the global AWS market while confirming our ability to scale impactful cloud solutions tailored to the unique requirements of each of our clients.”
Charles Powell, VP of Sales - AWS Cloud Services at NETSOL, further emphasized the significance of this achievement, remarking, “We are proud to announce that our organization has attained this distinguished status following a thorough evaluation process proving our extensive investments in innovative AWS solutions.”
He highlighted NETSOL's differentiation, “Our digital engineering and enterprise modernization proficiency, combined with our deep domain knowledge and extensive experience with AWS, positions us uniquely ahead of our peers in providing cutting-edge, personalized cloud solutions. We are excited to strengthen our relationship with AWS and empower our mid-market and enterprise clients to maximize the potential of cloud technology and achieve tangible business outcomes.”
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global finance and leasing industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in eleven strategically located support and delivery centers throughout the world. NETSOL helps companies transform their finance and leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
Najeeb Ghauri, Chief Executive Officer of NETSOL Technologies, Inc., commented, “This selection is a validation of the superior performance and reliability of our products, specifically NFS Ascent, a cutting-edge solution capable of supporting large clients on a global scale. We’re energized by this contract with a leading automotive company in one of their key markets and look forward to providing support across their China-based operations.”
NETSOL commenced implementation in the second quarter of fiscal 2024 and realized a portion of this contract in licensing fees during that quarter.
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in ten strategically located support and delivery centers throughout the world. NETSOL’s products help companies transform their finance and leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
Haydock Finance is an award-winning supportive business finance specialist that is using Flex since 2023 and subscribed to additional products from Appex Now earlier this year. Appex Now is the world’s first marketplace for API-first products developed by NETSOL specifically for the global credit, finance and leasing industry.
“Our instant cloud-based calculation engine essentially empowers financial institutions with swift and accurate contract lifecycle calculations and seamless integration into a customer’s ecosystem,” said Najeeb Ghauri, Founder and CEO of NETSOL Technologies Inc. “Upon subscribing and subsequently going live with Flex, Haydock Finance initially provided their vendors with the online quotation tool to enable them to independently calculate quick and precise quotations and rates including APR, yield and flat rates.”
“This resulted in significant time savings for vendors, enhanced efficiency, expedited application submission and minimized involvement of the client's sales team in the quotation process,” he added. “Flex is now being offered to a larger audience as Haydock has launched our calculation engine for their brokers to create quotations and provide them with real-time insights in order to make more informed decisions.”
“We are always looking at ways in which we can support our broker network. NETSOL Technologies’ Flex provides a very user-friendly, seamless quotation experience and we’re delighted that we can provide this technology to our broker partners as part of our service. The product is exactly what it should be - accessible, user-friendly and accurate,” said Andy Taylor, Sales Director of Haydock Finance.
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in ten strategically located support and delivery centers throughout the world. NETSOL’s products help companies transform their finance and leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
About Haydock Finance
Haydock Finance is an SME finance specialist who has been supporting UK SME growth for over 40 years. With a lending book size in excess of £600 million, they work closely with a nationwide portfolio of introducers to provide a high level of expertise and dedicated support for a variety of funding solutions.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
ENCINO, Calif., Feb. 13, 2024 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, reported results for the fiscal second quarter of 2024 ended December 31, 2023.
Fiscal Second Quarter 2024 Financial Results
Total net revenues for the second quarter of fiscal 2024 increased 23% to $15.2 million, compared with $12.4 million in the prior year period. On a constant currency basis, total net revenues were $15.3 million.
Gross profit for the second quarter of fiscal 2024 was $7.2 million (or 47% of net revenues), compared to $3.1 million (or 25% of net revenues) in the second quarter of fiscal 2023. On a constant currency basis, gross profit for the second quarter of fiscal 2024 was $5.9 million (or 39% of net revenues as measured on a constant currency basis).
Operating expenses for the second quarter of fiscal 2024 were $6.1 million (or 40% of sales) compared to $6.2 million (or 50% of sales) for the second quarter of fiscal 2023. On a constant currency basis, operating expenses for the second quarter of fiscal 2024 increased to $6.7 million (or 44% of sales on a constant currency basis).
GAAP net income attributable to NETSOL for the second quarter of fiscal 2024 totaled $408,000 or $0.04 per diluted share, compared with a GAAP net loss of $(2.1 million) or a loss of $(0.19) per diluted share in the second quarter of fiscal 2023. Included in GAAP net income attributable to NETSOL was a loss of $(14,617) on foreign currency exchange transactions in the second quarter of fiscal 2024, compared to a gain of $657,000 in the prior year period. On a constant currency basis, GAAP net loss attributable to NETSOL for the second quarter of fiscal 2024 totaled $(902,000) or $(0.08) per diluted share.
Non-GAAP adjusted EBITDA for the second quarter of fiscal 2024 was $725,000 or $0.06 per diluted share, compared with a non-GAAP adjusted EBITDA loss of $(1.3 million) or $(0.12) per diluted share in the second quarter of fiscal 2023 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).
Six Months Ended December 31, 2023, Financial Results
Total net revenues for the six months ended December 31, 2023, were $29.5 million, compared to $25.1 million in the prior year period. On a constant currency basis, total net revenues were $29.6 million.
Gross profit for the six months ended December 31, 2023, was $13.3 million (or 45% of net revenues), compared with $7.4 million (or 29% of net revenues) in the prior year period. On a constant currency basis, gross profit for the six months ended December 31, 2023, was $10.6 million (or 36% of net revenues as measured on a constant currency basis).
Operating expenses for the six months ended December 31, 2023, were $12.0 million (or 41% of sales) compared with $12.3 million (or 49% of sales) in the prior year period. On a constant currency basis, operating expenses for the six months ended December 31, 2023, were $13.1 million (or 44% of sales on a constant currency basis).
GAAP net income attributable to NETSOL for the six months ended December 31, 2023, totaled $439,000 or $0.04 per diluted share, compared with a GAAP net loss of $(2.7 million) or $(0.24) per diluted share in the prior year period. Included in GAAP net income attributable to NETSOL was a loss of $(149,000) on foreign currency exchange transactions for the six months ended December 31, 2023, compared to a gain of $2.0 million in the prior year period. On a constant currency basis, GAAP net loss attributable to NETSOL for the first six months of fiscal 2024 totaled $(2.4 million) or $(0.21) per diluted share.
Non-GAAP adjusted EBITDA for the six months ended December 31, 2023, was $1.2 million or $0.10 per diluted share, compared with a non-GAAP adjusted EBITDA loss of $1.4 million or $(0.12) per diluted share in the prior year period (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).
At December 31, 2023, cash and cash equivalents were $15.7 million. Total NETSOL stockholders’ equity at December 31, 2023, was $34.5 million, or $3.03 per share.
Management Commentary
NETSOL Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri stated, “Similar to our first quarter, the second quarter of fiscal 2024 was characterized by increases in total net revenue, improved gross margins, and profitability, demonstrating the strength of our business model and our ability to execute on our growth strategy.
“While we continue to scale our SaaS business, our hybrid license and SaaS model has become a major catalyst for our growth. We recognized substantial license fees in this quarter as part of a large new contract in Asia with a major automotive company, which reinforces our visibility and reputation in the market, as well as the performance and reliability of our products. We expect license fees will continue to represent a key part of our revenue for the foreseeable future, and we have a robust pipeline of both SaaS and licensing opportunities to support this anticipated growth. We recognized increases in our subscription and support revenues this quarter as well, further reflecting the strength of our SaaS offerings. With the launch of our Otoz 2.0 digital retail platform, which has doubled enrollment over the last 12 months, and increased traction with key automotive clients like AutoNation and MINI USA, we’re confident that this part of our business is positioned for continued growth.
“We are very pleased with our second quarter results and continue to strategically invest and allocate capital to further expand our presence across key, high growth markets like North America. Given our recent results and trajectory, we expect to see strong double digit organic revenue growth and improved margins throughout the second half of fiscal 2024 as we move into a period of more sustainable profitability.”
Conference Call
NETSOL Technologies management will hold a conference call today (February 13, 2024) at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss these financial results. A question-and-answer session will follow management's presentation.
U.S. dial-in: 877-407-0789
International dial-in: 201-689-8562
Please call the conference telephone number 5-10 minutes prior to the start time or use this link for telephone access to the call via your web browser. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Investor Relations at 818-222-9195.
The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.
A telephone replay of the conference call will be available approximately three hours after the call concludes through Tuesday, February 27, 2024.
Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay ID: 13743948
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in ten strategically located support and delivery centers throughout the world. NETSOL’s products help companies transform their finance and leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
NETSOL Technologies, Inc. and Subsidiaries | |||||||||
Schedule 1: Consolidated Balance Sheets | |||||||||
As of | As of | ||||||||
ASSETS | December 31, 2023 | June 30, 2023 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 15,659,516 | $ | 15,533,254 | |||||
Accounts receivable, net of allowance of $421,288 and $420,354 | 5,975,716 | 11,714,422 | |||||||
Revenues in excess of billings, net of allowance of $137,406 and $1,380,141 | 16,299,287 | 12,377,677 | |||||||
Other current assets | 2,142,487 | 1,978,514 | |||||||
Total current assets | 40,077,006 | 41,603,867 | |||||||
Revenues in excess of billings, net - long term | 734,397 | - | |||||||
Property and equipment, net | 5,665,699 | 6,161,186 | |||||||
Right of use assets - operating leases | 1,659,622 | 1,151,575 | |||||||
Other assets | 32,338 | 32,327 | |||||||
Intangible assets, net | - | 127,931 | |||||||
Goodwill | 9,302,524 | 9,302,524 | |||||||
Total assets | $ | 57,471,586 | $ | 58,379,410 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued expenses | $ | 6,713,920 | $ | 6,552,181 | |||||
Current portion of loans and obligations under finance leases | 5,982,466 | 5,779,510 | |||||||
Current portion of operating lease obligations | 689,770 | 505,237 | |||||||
Unearned revenue | 4,426,008 | 7,932,306 | |||||||
Total current liabilities | 17,812,164 | 20,769,234 | |||||||
Loans and obligations under finance leases; less current maturities | 99,527 | 176,229 | |||||||
Operating lease obligations; less current maturities | 1,022,361 | 652,194 | |||||||
Total liabilities | 18,934,052 | 21,597,657 | |||||||
Stockholders' equity: | |||||||||
Preferred stock, $.01 par value; 500,000 shares authorized; | - | - | |||||||
Common stock, $.01 par value; 14,500,000 shares authorized; | |||||||||
12,329,919 shares issued and 11,390,888 outstanding as of December 31, 2023 | |||||||||
12,284,887 shares issued and 11,345,856 outstanding as of June 30, 2023 | 123,301 | 122,850 | |||||||
Additional paid-in-capital | 128,587,384 | 128,476,048 | |||||||
Treasury stock (at cost, 939,031 shares | |||||||||
as of December 31, 2023 and June 30, 2023) | (3,920,856 | ) | (3,920,856 | ) | |||||
Accumulated deficit | (44,456,980 | ) | (44,896,186 | ) | |||||
Other comprehensive loss | (45,870,309 | ) | (45,975,156 | ) | |||||
Total NetSol stockholders' equity | 34,462,540 | 33,806,700 | |||||||
Non-controlling interest | 4,074,994 | 2,975,053 | |||||||
Total stockholders' equity | 38,537,534 | 36,781,753 | |||||||
Total liabilities and stockholders' equity | $ | 57,471,586 | $ | 58,379,410 |
NETSOL Technologies, Inc. and Subsidiaries | |||||||||||||||||
Schedule 2: Consolidated Statement of Operations | |||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||||||||
Net Revenues: | |||||||||||||||||
License fees | $ | 2,990,453 | $ | 15,884 | $ | 4,270,902 | $ | 265,844 | |||||||||
Subscription and support | 6,827,781 | 6,502,669 | 13,340,024 | 12,519,503 | |||||||||||||
Services | 5,419,707 | 5,871,805 | 11,869,196 | 12,311,130 | |||||||||||||
Total net revenues | 15,237,941 | 12,390,358 | 29,480,122 | 25,096,477 | |||||||||||||
Cost of revenues | 8,062,204 | 9,247,895 | 16,142,368 | 17,702,017 | |||||||||||||
Gross profit | 7,175,737 | 3,142,463 | 13,337,754 | 7,394,460 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling, general and administrative | 5,807,494 | 5,716,073 | 11,240,463 | 11,394,634 | |||||||||||||
Research and development cost | 341,411 | 472,904 | 719,830 | 942,531 | |||||||||||||
Total operating expenses | 6,148,905 | 6,188,977 | 11,960,293 | 12,337,165 | |||||||||||||
Income (loss) from operations | 1,026,832 | (3,046,514 | ) | 1,377,461 | (4,942,705 | ) | |||||||||||
Other income and (expenses) | |||||||||||||||||
Interest expense | (290,322 | ) | (202,363 | ) | (566,339 | ) | (323,973 | ) | |||||||||
Interest income | 468,280 | 309,906 | 882,998 | 741,763 | |||||||||||||
Gain (loss) on foreign currency exchange transactions | (14,617 | ) | 657,223 | (148,870 | ) | 1,972,928 | |||||||||||
Share of net loss from equity investment | - | 5,133 | - | 5,133 | |||||||||||||
Other income (expense) | (57,305 | ) | 94,708 | 576 | 120,324 | ||||||||||||
Total other income (expenses) | 106,036 | 864,607 | 168,365 | 2,516,175 | |||||||||||||
Net income (loss) before income taxes | 1,132,868 | (2,181,907 | ) | 1,545,826 | (2,426,530 | ) | |||||||||||
Income tax provision | (150,053 | ) | (220,056 | ) | (271,948 | ) | (413,404 | ) | |||||||||
Net income (loss) | 982,815 | (2,401,963 | ) | 1,273,878 | (2,839,934 | ) | |||||||||||
Non-controlling interest | (574,499 | ) | 309,037 | (834,672 | ) | 126,279 | |||||||||||
Net income (loss) attributable to NetSol | $ | 408,316 | $ | (2,092,926 | ) | $ | 439,206 | $ | (2,713,655 | ) | |||||||
Net income (loss) per share: | |||||||||||||||||
Net income (loss) per common share | |||||||||||||||||
Basic | $ | 0.04 | $ | (0.19 | ) | $ | 0.04 | $ | (0.24 | ) | |||||||
Diluted | $ | 0.04 | $ | (0.19 | ) | $ | 0.04 | $ | (0.24 | ) | |||||||
Weighted average number of shares outstanding | |||||||||||||||||
Basic | 11,372,819 | 11,270,199 | 11,359,338 | 11,263,869 | |||||||||||||
Diluted | 11,372,819 | 11,270,199 | 11,359,338 | 11,263,869 |
NETSOL Technologies, Inc. and Subsidiaries | ||||||||||
Schedule 3: Consolidated Statement of Cash Flows | ||||||||||
For the Six Months | ||||||||||
Ended December 31, | ||||||||||
2023 | 2022 | |||||||||
Cash flows from operating activities: | ||||||||||
Net income (loss) | $ | 1,273,878 | $ | (2,839,934 | ) | |||||
Adjustments to reconcile net income (loss) to net cash | ||||||||||
provided by operating activities: | ||||||||||
Depreciation and amortization | 959,949 | 1,736,503 | ||||||||
Provision for bad debts | 29,191 | (67,176 | ) | |||||||
Share of net (gain) loss from investment under equity method | - | (5,133 | ) | |||||||
Gain on sale of assets | (98 | ) | (28,344 | ) | ||||||
Stock based compensation | 111,787 | 146,167 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 5,722,791 | 3,772,091 | ||||||||
Revenues in excess of billing | (4,239,762 | ) | (702,812 | ) | ||||||
Other current assets | 329,171 | (529,579 | ) | |||||||
Accounts payable and accrued expenses | 72,501 | 904,731 | ||||||||
Unearned revenue | (3,654,724 | ) | (696,971 | ) | ||||||
Net cash provided by operating activities | 604,684 | 1,689,543 | ||||||||
Cash flows from investing activities: | ||||||||||
Purchases of property and equipment | (570,584 | ) | (1,252,325 | ) | ||||||
Sales of property and equipment | 1,248 | 70,283 | ||||||||
Net cash used in investing activities | (569,336 | ) | (1,182,042 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Proceeds from bank loans | 135,123 | |||||||||
Payments on finance lease obligations and loans - net | (162,482 | ) | (537,180 | ) | ||||||
Net cash used in financing activities | (27,359 | ) | (537,180 | ) | ||||||
Effect of exchange rate changes | 118,273 | (2,987,396 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 126,262 | (3,017,075 | ) | |||||||
Cash and cash equivalents at beginning of the period | 15,533,254 | 23,963,797 | ||||||||
Cash and cash equivalents at end of period | $ | 15,659,516 | $ | 20,946,722 |
NETSOL Technologies, Inc. and Subsidiaries | |||||||||||||||
Schedule 4: Reconciliation to GAAP | |||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||
Ended December 31, | Ended December 31, | ||||||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||||||
Net Income (loss) attributable to NetSol | $ | 408,316 | $ | (2,092,926 | ) | $ | 439,206 | $ | (2,713,655 | ) | |||||
Non-controlling interest | 574,499 | (309,037 | ) | 834,672 | (126,279 | ) | |||||||||
Income taxes | 150,053 | 220,056 | 271,948 | 413,404 | |||||||||||
Depreciation and amortization | 429,163 | 891,500 | 959,949 | 1,736,503 | |||||||||||
Interest expense | 290,322 | 202,363 | 566,339 | 323,973 | |||||||||||
Interest (income) | (468,280 | ) | (309,906 | ) | (882,998 | ) | (741,763 | ) | |||||||
EBITDA | $ | 1,384,073 | $ | (1,397,950 | ) | $ | 2,189,116 | $ | (1,107,817 | ) | |||||
Add back: | |||||||||||||||
Non-cash stock-based compensation | 51,433 | 64,333 | 111,787 | 146,167 | |||||||||||
Adjusted EBITDA, gross | $ | 1,435,506 | $ | (1,333,617 | ) | $ | 2,300,903 | $ | (961,650 | ) | |||||
Less non-controlling interest (a) | (710,154 | ) | 7,363 | (1,109,577 | ) | (392,172 | ) | ||||||||
Adjusted EBITDA, net | $ | 725,352 | $ | (1,326,254 | ) | $ | 1,191,326 | $ | (1,353,822 | ) | |||||
Weighted Average number of shares outstanding | |||||||||||||||
Basic | 11,372,819 | 11,270,199 | 11,359,338 | 11,263,869 | |||||||||||
Diluted | 11,372,819 | 11,270,199 | 11,359,338 | 11,263,869 | |||||||||||
Basic adjusted EBITDA | $ | 0.06 | $ | (0.12 | ) | $ | 0.10 | $ | (0.12 | ) | |||||
Diluted adjusted EBITDA | $ | 0.06 | $ | (0.12 | ) | $ | 0.10 | $ | (0.12 | ) | |||||
(a)The reconciliation of adjusted EBITDA of non-controlling interest | |||||||||||||||
to net income attributable to non-controlling interest is as follows | |||||||||||||||
Net Income (loss) attributable to non-controlling interest | $ | 574,499 | $ | (309,037 | ) | $ | 834,672 | $ | (126,279 | ) | |||||
Income Taxes | 75,407 | 68,406 | 111,784 | 128,316 | |||||||||||
Depreciation and amortization | 109,748 | 255,584 | 251,082 | 493,917 | |||||||||||
Interest expense | 91,295 | 62,736 | 177,184 | 100,132 | |||||||||||
Interest (income) | (144,578 | ) | (93,012 | ) | (272,669 | ) | (225,501 | ) | |||||||
EBITDA | $ | 706,371 | $ | (15,323 | ) | $ | 1,102,053 | $ | 370,585 | ||||||
Add back: | |||||||||||||||
Non-cash stock-based compensation | 3,783 | 7,960 | 7,524 | 21,587 | |||||||||||
Adjusted EBITDA of non-controlling interest | $ | 710,154 | $ | (7,363 | ) | $ | 1,109,577 | $ | 392,172 |
ENCINO, Calif., Feb. 01, 2024 (GLOBE NEWSWIRE) -- NETSOL Technologies (Nasdaq: NTWK), a global leader in SaaS solutions and IT services, today announced major updates on its digital retail and mobility technology platform, Otoz, and the latest traction achieved with two key automotive clients, MINI USA and AutoNation.
Otoz 2.0: The Future of Digital Retail and Mobility Orchestration
NETSOL Technologies has officially unveiled Otoz 2.0 after implementing major updates to the digital retail and mobility technology platform. The white-label solution is tailored to leading automotive industry stakeholders including OEMs, dealerships, finance providers, and startups. Designed for deep integration within distinct internal ecosystems, Otoz facilitates unmatched e-commerce experiences that are fully aligned with clients’ unique brand requirements. With cutting-edge technology, user-centric design, and data-driven strategies, Otoz is redefining customer engagement in the automotive realm.
The ambition to deliver a seamless, end-to-end purchasing journey and manage asset and contract lifecycles particularly for mobility business models—from real-time pricing and meticulous tax computations to digital e-contracting—presented various challenges. This required navigation of complex state-by-state regulations and keen attention to data security, privacy, and inventory amidst unprecedented supplier challenges.
Otoz elegantly addresses various complexities, establishing key integrations with crucial third-party services, ranging from inventory and CRM systems to identity safeguards, fraud monitoring, comprehensive lender APIs, tax services, F&I product aggregators, and payment gateways. With the end customer in focus, Otoz's synergy with these third parties and its strategic placement of deal checkpoints expedite vehicle and deal verifications for dealers. This ensures a secure and profitable digital sales channel that transcends traditional lead generation.
NETSOL is set to expand its offerings with the upcoming phased launch of Otoz 2.0 over the next year. At the forefront of this advancement is the debut of an API-first product ecosystem, Appex Now (Appexnow.com), NETSOL’s marketplace offering that caters to the global finance industry with turnkey API-first solutions. Through Appex Now’s Hubex API product, collaborations with major dealer management systems (DMS) providers, customer relationship management systems (CRMs), and finance drivers are now available. The modular and headless architecture of Otoz 2.0 will empower partners to rearrange process flows and innovate without implementing code modifications.
The Otoz dashboard for dealers and administrators will undergo substantial enhancements. These new integrations will be further enriched by advanced artificial intelligence and machine learning models to optimize customer interactions and gain predictive insights. The vision is to provide dealers with a holistic omnichannel tool for both digital and in-person transactions, minimizing reliance on auxiliary dealer systems, and creating efficiencies through fewer screens. Emphasis will also be placed on curating personalized and intuitive F&I upselling opportunities.
MINI Anywhere Powered by Otoz Doubles Enrollment in Past 12 Months; Achieves 5x Increase in Lead Volume
Since its debut in June 2021, MINI USA's digital retail program, MINI Anywhere powered by NETSOL’s Otoz technology has established itself as a premier digital retail platform in the automotive industry. More than a sophisticated lead generator, MINI Anywhere offers MINI dealers an omnichannel, end-to-end sales platform while delivering customers a seamless yet comprehensive shopping experience. From payment options aligned with MINI Financial Services programs to trade-ins, MINI finance and insurance (F&I) options, streamlined credit approvals, digital contracts, and delivery schedules, every aspect has been designed with convenience in mind. Remarkably, MINI enthusiasts can finalize their purchase in as little as 30 minutes, all from the comfort of their homes.
In the last 12 months, the program has more than doubled dealer enrollments now active across nearly two-thirds of the MINI USA dealership network, enabling an unprecedented 5x increase of lead volume and vehicle sales, and an impressive 20% lead conversion rate on average. The program continues to roll out across the network.
Patrick McKenna, the Department Head of Marketing, Product, and Strategy at MINI USA, captures the vision, “In May 2021, MINI USA and MINI Financial Services set out to build a digital retail tool that could handle credit decisioning, eContracting and eSignature to allow end-to-end transactions. For the past 3 years, major automotive forums in the industry have recognized MINI Anywhere as one of the top ranked OEM digital retail tools in the competitive luxury space. We are extremely proud of MINI Anywhere, the team at NETSOL Technologies, and want to thank our dealer partners for such an achievement.”
AutoNation Mobility Launches Micro Lease Marketplace, Leveraging Otoz Back-End Technology
The automotive market is witnessing a significant shift towards short-term vehicle usage options, a trend ignited post-pandemic. In the wake of evolving market demands for flexible vehicle usage, Otoz 2.0 supports AutoNation Mobility in spearheading the shift towards micro-leasing. Otoz 2.0 is leveraged for back-end, operational processes and integrated seamlessly with AutoNation Mobility’s customer facing micro-lease marketplace. This service allows customers to navigate through the process of vehicle selection, deal configuration, and transaction finalization with ease and transparency. The Micro Lease marketplace is currently available in California and Florida, with plans for further expansion.
Otoz 2.0 is powered by the robust, API-first ecosystem of NETSOL’s AppexNow marketplace, built with a headless architecture and flexible backend design that allows for seamless updates and integration, providing a highly customizable and modular experience. Its comprehensive suite of functionalities within Otoz 2.0 are designed to streamline customer onboarding, service workflows, vehicle delivery, and return processes. These features are vital for facilitating interactions among AutoNation Mobility’s operations team, dealers, and customers, thereby guaranteeing an exceptional customer experience.
Ivan Mihov, Vice President of Mobility at AutoNation Mobility, celebrates the partnership, "Our strategic alliance with NETSOL and the integration of the Otoz platform align perfectly with our goals for innovation and market entry. The swift launch of AutoNation Mobility, a mere six months into our collaboration, highlights our shared commitment to continual innovation and prioritizing customer needs."
The debut of Otoz 2.0 signifies a transformative moment in the automotive retail technology landscape. The flexible software powers the ability for customers to finance or lease a vehicle with unmatched convenience and adaptability. To explore AutoNation Mobility’s micro-lease options and witness the future of car ownership, visit autonationmobility.com. For an in-depth look at how Otoz 2.0 is setting a new standard in mobility solutions, visit otozmobility.com.
About AutoNation, Inc.
AutoNation, a provider of personalized transportation services, is driven by innovation and transformation. As one of America's most admired companies, AutoNation delivers a peerless Customer experience recognized by data-driven consumer insight leaders, Reputation and J.D. Power. Through its bold leadership and brand affinity, the AutoNation Brand is synonymous with "DRVPNK" and "What Drives You, Drives Us." AutoNation has a singular focus on personalized transportation services that are easy, transparent, and Customer-centric.
Please visit www.autonation.com, investors.autonation.com, and www.twitter.com/AutoNation, where AutoNation discloses additional information about the Company, its business, and its results of operations. Please also visit www.autonationdrive.com, AutoNation's automotive blog, for information regarding the AutoNation community, the automotive industry, and current automotive news and trends.
About MINI USA
MINI is an independent brand of the BMW Group. In the United States, MINI USA operates as a business unit of BMW of North America, LLC, located in Woodcliff Lake, New Jersey and includes the marketing and sales organizations for the MINI brand. The MINI USA sales organization is represented in the U.S. through a network of 104 MINI passenger car dealers. MINI USA began selling vehicles in the U.S. in 2002 with the introduction of the MINI Cooper and MINI Cooper S Hardtops. Since then, the MINI Brand in the U.S. has grown to encompass a model range of five unique vehicles.
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft, and NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
AutoNation Public Relations:
publicrelations@autonation.com
954-769-4120
MINI USA Press Contact:
Andrew Cutler
Head of Corporate Communications
MINI USA
201.307.3784
andrew.cutler@miniusa.com
Date: Tuesday, February 13, 2024
Time: 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time)
Toll-Free Dial-In: 877-407-0789
International Dial-In: 201-689-8562
Please call the conference telephone number 10 minutes prior to the start time or use this link for telephone access to the call via your web browser. An operator will register your name and organization.
The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.
A telephone replay of the conference call will be available approximately three hours after the call concludes through Tuesday, February 27, 2024.
Toll-Free Replay Dial-In: 844-512-2921
International Replay Dial-In: 412-317-6671
Replay ID: 13743948
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft, and NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
With an impressive background in the banking sector, Mr. Hurwitz brings a wealth of expertise to NETSOL Technologies. Most recently, Mr. Hurwitz worked with Aldermore Bank for nearly six years, where he was the product lead for a large group wide transformation program. He also led strategy, innovation, commercial insights, tech transformation, and growth initiatives for Aldermore’s SME lending division, with a particular focus on asset finance, working closely with MotoNovo Finance, Aldermore’s motor finance business. Prior to his roles at Aldermore, Mr. Hurwitz worked at Close Brothers Asset Finance for five years where he led several sales transformation programs, and facilitated strategic relationship development, growth initiatives and long-term strategy development. Mr. Hurwitz also has experience as a business founder and entrepreneur, providing him with unique insights into end customer value in SME lending and banking. He began his career as an investment banker in the equity derivatives division at UBS.
"We’re thrilled to welcome Jason Hurwitz to our dynamic management team,” said Darryll Lewis, Managing Director at NETSOL Technologies Europe. "We believe that Jason’s experience driving growth, operational improvement, and tech transformation and innovation, as well as his vision, strategic acumen and market knowledge, will help to cultivate meaningful client relationships and further enhance NETSOL’s growth across Europe."
"I am delighted to step into the role of Sales Director of Europe at NETSOL Technologies where I see great potential to grow with a fantastic team," said Jason Hurwitz. "NETSOL possesses a wide range of truly innovative and proven products including its cloud-based core and the growing suite of Appex Now cloud-based micro services that are already experiencing high demand as clients see how quickly they add value by significantly improving operating efficiency."
"The leasing market continues to demonstrate impressive growth and resilience over recent years, despite challenging circumstances," he added. "My goal is to leverage the strengths and expertise of European lessors through identifying and building innovative plans to elevate strategic value, unlock growth potential, and improve returns."
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft, and NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
ENCINO, Calif., Jan. 03, 2024 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, announced that existing customer Haydock Finance, a leading asset finance specialist based in the United Kingdom, has signed up for two additional products from NETSOL’s Appex Now marketplace – Dock and Lane.
Dock is a centralized document generation tool with template-based configuration and simple syntax, allowing users to create accurate documents in just seconds. Lane offers a feature-rich, end-to-end order management system for asset leasing/loans and credit companies.
In April 2023, Haydock Finance subscribed to Flex, an API-based, instant calculation engine covering all calculation aspects ranging from the pricing for the end customer at inception, in-life financial modifications, the re-creation of the repayment plan, termination, amortizations/re-amortizations, among other calculation types. Flex was the inaugural product launched as a part of the NETSOL’s Appex Now marketplace, the first marketplace for API-first products specifically designed for the global credit, finance and leasing industry.
Najeeb Ghauri, Founder and CEO of NETSOL Technologies Inc., stated, "We are very pleased to further enhance our partnership with Haydock Finance in the UK. After integrating our cloud-based calculation engine Flex into their operations and benefiting from its efficiency, accuracy, and timely calculation results, they have chosen to subscribe to two additional products from our Appex Now marketplace, Dock and Lane."
"The quick success of our API-first products, which are changing how businesses integrate our solutions, excites me as CEO," he continued. "Our dedication to an API-first strategy has enabled our customers to onboard quickly and efficiently, greatly enhancing their experience. We've seen a rise in the number of financial institutions registering for our API-first products as a result of our emphasis on seamless integration and user-friendly interfaces, confirming our position as industry leaders in offering quick and simple solutions."
He further added, "By integrating our Appex Now products, vendors and sales teams can quickly calculate, generate, and share quotes with customers on-the-go, saving time and elevating convenience for all involved. Furthermore, once the quotes are saved, they can be easily retrieved and entered directly into the underwriting process, which streamlines processes to avoid duplication and ensure accuracy and consistency."
Mike Boyes, Head of Vendor at Haydock Finance commented, "Working with NETSOL Technologies has been an absolute pleasure so far. Their calculation engine Flex performs calculations that are 100% accurate, meeting our operational requirements and enabling quick and precise calculations for our quotes and applications on desktop and mobile platforms."
"We subscribed to Dock so that we could print quotations and generate documents on the fly," he continued. "It would provide us the freedom to set up various templates for various goods and to create quotation documents with only one click. Our document creation process will be streamlined and error-free thanks to Dock, which allows us to produce professional quotes in a matter of seconds." He went on to add, "Lane resolves the issues with the order creation and management process. Our business operations will run more smoothly with Lane's help. Quotations and applications can be saved, retrieved as needed, and printed from a desktop, tablet, or mobile device. We are really impressed with how quickly and easily NETSOL's API-first products can be signed up for and on-boarded."
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft, and NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
Wagner brings a wealth of experience, with over 16 years in the marketing field at growth-oriented companies. After seven years leading client services for Volacci, Erik joined Lifesize, a SaaS video conferencing company where he oversaw global demand generation and the launch of Lifesize Cloud, which grew to over a thousand customers during his tenure. Following this, he led marketing at FFW, a global digital agency, catalyzing significant growth and market expansion that preceded its acquisition by Celine Sieben Digital. Erik then held the position of Head of Growth at Onclusive, a public relations analytics SaaS startup. The company grew at a rapid rate and was acquired by STG Partners towards the end of his tenure. Most recently at Plivo, a SaaS company specializing in communication APIs, Erik's marketing strategies helped fuel dramatic growth, earning a place on the 2023 Inc 5000 list of the fastest-growing companies in the United States.
“We are excited to have Erik on board as our Chief Marketing Officer,” said Najeeb Ghauri, CEO of NETSOL Technologies. “His vast experience and proven track record in enhancing revenue through strategic marketing efforts make him a valuable asset to our team. Erik’s appointment is a clear indication of our focus on expanding our global footprint and enhancing our offerings in the automotive and equipment manufacturing, banking, and lending industries.”
“I’m thrilled to join the NETSOL Technologies team and to have the opportunity to contribute to such a dynamic and forward-thinking organization. NETSOL's suite of products and professional services are not just cutting-edge but are also deeply transformative for the industries we serve,” said Wagner. “I look forward to leveraging my experience to further amplify NETSOL’s market presence and to drive continued growth and success for our global clients.”
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft, and NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
Walter Frank
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
ENCINO Calif., Nov. 09, 2023 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, today announced that Bibby Financial Services, a UK-based multinational financial services provider supporting more than 8,500 small and medium-sized enterprises across more than 300 industry sectors, and United Trust Bank (“UTB”), a specialist bank that provides a wide range of secured funding facilities to SMEs, property developers and consumers, have subscribed and subsequently gone live with Flex – NETSOL’s instant API and cloud-based calculation engine. Additionally, UTB has subscribed to Dock - a cloud-based parameter storage that smoothly runs all a financial institution’s core lending operations.
Flex and Dock are both a part of NETSOL’s Appex Now marketplace, which was launched as the world’s first marketplace for API-products specifically targeting the global credit, finance and leasing industry.
Najeeb Ghauri, Founder and Chief Executive Officer of NETSOL, commented, “We’re pleased to be partnering with these two UK-based financial institutions and provide them with API-based solutions to maximize efficiencies across their business. NETSOL is a pioneer in the establishment of the Appex Now marketplace, and the growing number of registrations and subsequent deployments for Flex, our initial marketplace offering, demonstrates efficiency of our instant cloud-based calculation engine. We look forward to working with Bibby Financial Services and UTB, and entering additional partnerships as more institutions see the value of our Appex Now offerings.”
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1750 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact:
Investor Relations
(818) 222-9195
investors@netsoltech.com
ENCINO, Calif., Nov. 07, 2023 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, reported results for the fiscal first quarter ended September 30, 2023.
Fiscal First Quarter 2024 Financial Results
Total net revenues for the first quarter of fiscal 2024 increased 12% to $14.2 million, compared with $12.7 million in the prior year period. On a constant currency basis, total net revenues were $14.3 million.
Gross profit for the first quarter of fiscal 2024 was $6.2 million (or 43% of net revenues), compared to $4.3 million (or 33% of net revenues) in the first quarter of fiscal 2023. On a constant currency basis, gross profit for the first quarter of fiscal 2024 was $4.7 million (or 33% of net revenues as measured on a constant currency basis).
Operating expenses for the first quarter of fiscal 2024 were $5.8 million (or 41% of sales) compared to $6.1 million (or 48% of sales) for the first quarter of fiscal 2023. On a constant currency basis, operating expenses for the first quarter of fiscal 2023 increased to $6.4 million (or 45% of sales on a constant currency basis).
GAAP net income attributable to NETSOL for the first quarter of fiscal 2024 totaled $31,000 or $0.003 per diluted share, compared with GAAP net loss of $(621,000) or a loss of $(0.06) per diluted share in the first quarter of fiscal 2023. Included in GAAP net income attributable to NETSOL was a loss of $(134,000) on foreign exchange currency in the first quarter of fiscal 2024, compared to a gain of approximately $1.3 million in the prior year period. On a constant currency basis, NETSOL realized a loss of $(174,000) on foreign currency transactions.
Non-GAAP adjusted EBITDA for the first quarter of fiscal 2024 was $466,000 or $0.04 per diluted share, compared with non-GAAP adjusted EBITDA loss of $28,000 or $(0.002) per diluted share in the first quarter of fiscal 2023 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).
Management Commentary
NETSOL Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri stated, “Our first quarter of 2024 was highlighted by increases in total net revenue, improved gross margins, and profitability. This quarter highlights the strength of our business model particularly when we recognize licensing fees, subscription and support revenues, and services revenues. One goal is to drive more consistent license revenue alongside our more predictable subscription and support and services revenues.
“We also continue to drive our cost containment initiative so we can reallocate capital to growing our SaaS business and expansion into the United States market. On that front, our focus continues to be staffing our new office in Austin, Texas with the best talent available to address this largely untapped market. Moreover, our white label SaaS-based solution Otoz is now live in 60 MiniAnywhere dealerships across 37 U.S. states, demonstrating the growing demand for SaaS-based solutions in this market. Finally, we continue to evaluate strategic acquisition opportunities throughout North America.
“We’re very pleased with our results this quarter, and we believe that our performance reflects the long-term earnings potential for NETSOL as we continue to scale our revenue. We are working diligently to build our pipeline of licensing deals, and along with our expanding SaaS offerings, we believe this will drive improved results and more consistent profitability and cash generation.”
Conference Call
NETSOL Technologies management will hold a conference call today (November 7, 2023) at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these financial results. A question-and-answer session will follow management's presentation.
U.S. dial-in: 877-407-0789
International dial-in: 201-689-8562
Please call the conference telephone number 5-10 minutes prior to the start time or use this link for telephone access to the call via your web browser. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Investor Relations at 818-222-9195.
The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.
A telephone replay of the conference call will be available approximately three hours after the call concludes through Tuesday, November 21, 2023.
Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay ID: 13742018
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent® – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance, as well as the delay in recovery or a prolonged economic downturn that effects our Company, our customers and the world economy. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
NETSOL Technologies, Inc. and Subsidiaries Schedule 1: Consolidated Balance Sheets | |||||||||
As of | As of | ||||||||
ASSETS | September 30, 2023 | June 30, 2023 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 16,551,677 | $ | 15,533,254 | |||||
Accounts receivable, net of allowance of $416,435 and $420,354 | 6,870,956 | 11,714,422 | |||||||
Revenues in excess of billings, net of allowance of $116,425 and $1,380,141 | 13,008,285 | 12,377,677 | |||||||
Other current assets | 2,244,490 | 1,978,514 | |||||||
Total current assets | 38,675,408 | 41,603,867 | |||||||
Revenues in excess of billings, net - long term | 724,875 | - | |||||||
Property and equipment, net | 5,770,794 | 6,161,186 | |||||||
Right of use assets - operating leases | 1,359,106 | 1,151,575 | |||||||
Other assets | 32,326 | 32,327 | |||||||
Intangible assets, net | - | 127,931 | |||||||
Goodwill | 9,302,524 | 9,302,524 | |||||||
Total assets | $ | 55,865,033 | $ | 58,379,410 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued expenses | $ | 6,802,879 | $ | 6,552,181 | |||||
Current portion of loans and obligations under finance leases | 5,756,553 | 5,779,510 | |||||||
Current portion of operating lease obligations | 538,363 | 505,237 | |||||||
Unearned revenue | 5,170,335 | 7,932,306 | |||||||
Total current liabilities | 18,268,130 | 20,769,234 | |||||||
Loans and obligations under finance leases; less current maturities | 137,847 | 176,229 | |||||||
Operating lease obligations; less current maturities | 795,935 | 652,194 | |||||||
Total liabilities | 19,201,912 | 21,597,657 | |||||||
Stockholders' equity: | |||||||||
Preferred stock, $.01 par value; 500,000 shares authorized; | - | - | |||||||
Common stock, $.01 par value; 14,500,000 shares authorized; | |||||||||
12,311,850 shares issued and 11,372,819 outstanding as of September 30, 2023 | |||||||||
12,284,887 shares issued and 11,345,856 outstanding as of June 30, 2023 | 123,120 | 122,850 | |||||||
Additional paid-in-capital | 128,536,132 | 128,476,048 | |||||||
Treasury stock (at cost, 939,031 shares | |||||||||
as of September 30, 2023 and June 30, 2023) | (3,920,856 | ) | (3,920,856 | ) | |||||
Accumulated deficit | (44,865,296 | ) | (44,896,186 | ) | |||||
Other comprehensive loss | (46,411,702 | ) | (45,975,156 | ) | |||||
Total NetSol stockholders' equity | 33,461,398 | 33,806,700 | |||||||
Non-controlling interest | 3,201,723 | 2,975,053 | |||||||
Total stockholders' equity | 36,663,121 | 36,781,753 | |||||||
Total liabilities and stockholders' equity | $ | 55,865,033 | $ | 58,379,410 | |||||
NETSOL Technologies, Inc. and Subsidiaries Schedule 2: Consolidated Statement of Operations | |||||||||
For the Three Months | |||||||||
Ended September 30, | |||||||||
2023 | 2022 | ||||||||
Net Revenues: | |||||||||
License fees | $ | 1,280,449 | $ | 249,960 | |||||
Subscription and support | 6,512,243 | 6,016,834 | |||||||
Services | 6,449,489 | 6,439,325 | |||||||
Total net revenues | 14,242,181 | 12,706,119 | |||||||
Cost of revenues | 8,080,164 | 8,454,122 | |||||||
Gross profit | 6,162,017 | 4,251,997 | |||||||
Operating expenses: | |||||||||
Selling, general and administrative | 5,432,969 | 5,678,561 | |||||||
Research and development cost | 378,419 | 469,627 | |||||||
Total operating expenses | 5,811,388 | 6,148,188 | |||||||
Income (loss) from operations | 350,629 | (1,896,191 | ) | ||||||
Other income and (expenses) | |||||||||
Interest expense | (276,017 | ) | (121,610 | ) | |||||
Interest income | 414,718 | 431,857 | |||||||
Gain (loss) on foreign currency exchange transactions | (134,253 | ) | 1,315,705 | ||||||
Other income (expense) | 57,881 | 25,616 | |||||||
Total other income (expenses) | 62,329 | 1,651,568 | |||||||
Net income (loss) before income taxes | 412,958 | (244,623 | ) | ||||||
Income tax provision | (121,895 | ) | (193,348 | ) | |||||
Net income (loss) | 291,063 | (437,971 | ) | ||||||
Non-controlling interest | (260,173 | ) | (182,758 | ) | |||||
Net income (loss) attributable to NetSol | $ | 30,890 | $ | (620,729 | ) | ||||
Net income (loss) per share: | |||||||||
Net income (loss) per common share | |||||||||
Basic | $ | 0.003 | $ | (0.06 | ) | ||||
Diluted | $ | 0.003 | $ | (0.06 | ) | ||||
Weighted average number of shares outstanding | |||||||||
Basic | 11,345,856 | 11,257,539 | |||||||
Diluted | 11,345,856 | 11,257,539 | |||||||
NETSOL Technologies, Inc. and Subsidiaries Schedule 3: Consolidated Statement of Cash Flows | ||||||||||
Ended September 30, | ||||||||||
2023 | 2022 | |||||||||
Cash flows from operating activities: | ||||||||||
Net income (loss) | $ | 291,063 | $ | (437,971 | ) | |||||
Adjustments to reconcile net income (loss) to net cash | ||||||||||
provided by operating activities: | ||||||||||
Depreciation and amortization | 530,786 | 845,003 | ||||||||
Amortization of right of use of assets | - | - | ||||||||
Provision for bad debts | 7,880 | (47,479 | ) | |||||||
Gain on sale of assets | (98 | ) | (23,296 | ) | ||||||
Stock based compensation | 60,354 | 81,834 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 4,608,881 | 815,132 | ||||||||
Revenues in excess of billing | (1,478,386 | ) | 337,996 | |||||||
Other current assets | 92,686 | (340,390 | ) | |||||||
Accounts payable and accrued expenses | 341,722 | 687,453 | ||||||||
Unearned revenue | (2,791,269 | ) | (619,425 | ) | ||||||
Net cash provided by operating activities | 1,663,619 | 1,298,857 | ||||||||
Cash flows from investing activities: | ||||||||||
Purchases of property and equipment | (371,630 | ) | (1,347,601 | ) | ||||||
Sales of property and equipment | 1,230 | 453,607 | ||||||||
Net cash used in investing activities | (370,400 | ) | (893,994 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Payments on finance lease obligations and loans - net | (44,474 | ) | (445,737 | ) | ||||||
Net cash used in financing activities | (44,474 | ) | (445,737 | ) | ||||||
Effect of exchange rate changes | (230,322 | ) | (2,999,975 | ) | ||||||
Net decrease in cash and cash equivalents | 1,018,423 | (3,040,849 | ) | |||||||
Cash and cash equivalents at beginning of the period | 15,533,254 | 23,963,797 | ||||||||
Cash and cash equivalents at end of period | $ | 16,551,677 | $ | 20,922,948 | ||||||
NETSOL Technologies, Inc. and Subsidiaries Schedule 4: Reconciliation to GAAP | |||||||
For the Three Months | |||||||
Ended September 30, | |||||||
2023 | 2022 | ||||||
Net Income (loss) attributable to NetSol | $ | 30,890 | $ | (620,729 | ) | ||
Non-controlling interest | 260,173 | 182,758 | |||||
Income taxes | 121,895 | 193,348 | |||||
Depreciation and amortization | 530,786 | 845,003 | |||||
Interest expense | 276,017 | 121,610 | |||||
Interest (income) | (414,718 | ) | (431,857 | ) | |||
EBITDA | $ | 805,043 | $ | 290,133 | |||
Add back: | |||||||
Non-cash stock-based compensation | 60,354 | 81,834 | |||||
Adjusted EBITDA, gross | $ | 865,397 | $ | 371,967 | |||
Less non-controlling interest (a) | (399,423 | ) | (399,535 | ) | |||
Adjusted EBITDA, net | $ | 465,974 | $ | (27,568 | ) | ||
Weighted Average number of shares outstanding | |||||||
Basic | 11,345,856 | 11,257,539 | |||||
Diluted | 11,345,856 | 11,257,539 | |||||
Basic adjusted EBITDA | $ | 0.04 | $ | (0.002 | ) | ||
Diluted adjusted EBITDA | $ | 0.04 | $ | (0.002 | ) | ||
(a)The reconciliation of adjusted EBITDA of non-controlling interest | |||||||
to net income attributable to non-controlling interest is as follows | |||||||
Net Income (loss) attributable to non-controlling interest | $ | 260,173 | $ | 182,758 | |||
Income Taxes | 36,377 | 59,910 | |||||
Depreciation and amortization | 141,334 | 238,333 | |||||
Interest expense | 85,889 | 37,396 | |||||
Interest (income) | (128,091 | ) | (132,489 | ) | |||
EBITDA | $ | 395,682 | $ | 385,908 | |||
Add back: | |||||||
Non-cash stock-based compensation | 3,741 | 13,627 | |||||
Adjusted EBITDA of non-controlling interest | $ | 399,423 | $ | 399,535 | |||
NETSOL management will host the presentation, followed by a question-and-answer period.
Date: Tuesday, November 7, 2023
Time: 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time)
Toll-Free Dial-In: 877-407-0789
International Dial-In: 201-689-8562
Please call the conference telephone number 10 minutes prior to the start time or use this link for telephone access to the call via your web browser. An operator will register your name and organization.
The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.
A telephone replay of the conference call will be available approximately three hours after the call concludes through Tuesday, November 21, 2023.
Toll-Free Replay Dial-In: 844-512-2921
International Replay Dial-In: 412-317-6671
Replay ID: 13742018
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of over 1600 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Investor Relations Contact:
IMS Investor Relations
(203) 972-9200
netsol@imsinvestorrelations.com
NETSOL management will host the presentation, followed by a question-and-answer period.
Date: Tuesday, November 7, 2023
Time: 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time)
Toll-Free Dial-In: 877-407-0789
International Dial-In: 201-689-8562
Please call the conference telephone number 10 minutes prior to the start time or use this link for telephone access to the call via your web browser. An operator will register your name and organization.
The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.
A telephone replay of the conference call will be available approximately three hours after the call concludes through Tuesday, November 21, 2023.
Toll-Free Replay Dial-In: 844-512-2921
International Replay Dial-In: 412-317-6671
Replay ID: 13742018
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of over 1600 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Investor Relations Contact:
IMS Investor Relations
(203) 972-9200
netsol@imsinvestorrelations.com
ENCINO, Calif., Sept. 22, 2023 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, reported results for the fiscal fourth quarter and year ended June 30, 2023.
Fiscal Fourth Quarter 2023 Operational Highlights
Fiscal Fourth Quarter 2023 Financial Results
Total net revenues for the fourth quarter of fiscal 2023 were $13.8 million, compared with $13.5 million in the prior year period. On a constant currency basis, total net revenues were $14.0 million.
Gross profit for the fourth quarter of fiscal 2023 was $4.8 million (or 35.0% of net revenues), consistent with $4.8 million (or 35.6% of net revenues) in the fourth quarter of fiscal 2022. On a constant currency basis, gross profit for the fourth quarter of fiscal 2023 was $2.4 million (or 17.1% of net revenues as measured on a constant currency basis).
Operating expenses for the fourth quarter of fiscal 2023 were $7.7 million (or 56.0% of sales) compared to $6.4 million (or 47.0% of sales) for the fourth quarter of fiscal 2022. On a constant currency basis, operating expenses for the fourth quarter of fiscal 2023 increased to $9.0 million (or 63.9% of sales on a constant currency basis).
GAAP net loss attributable to NETSOL for the fourth quarter of fiscal 2023 totaled $(5.1 million) or $(0.45) per diluted share, compared with GAAP net loss of $(2.2 million) or $(0.19) per diluted share in the fourth quarter of fiscal 2022. On a constant currency basis, GAAP net loss attributable to NETSOL for the fourth quarter of fiscal 2023 totaled $(7.8 million) or $(0.69) per diluted share. Included in GAAP net loss attributable to NETSOL was a loss of $(610,000) on foreign exchange currency in the fourth quarter, compared to a gain of approximately $1.6 million in the prior year period. On a constant currency basis, NETSOL realized a loss of $(1.2 million) on foreign currency transactions.
Non-GAAP adjusted EBITDA for the fourth quarter of fiscal 2023 was a loss of $(4.2 million) or $(0.37) per diluted share, compared with non-GAAP adjusted EBITDA loss of $(1.4 million) or $(0.12) per diluted share in the fourth quarter of fiscal 2022 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).
Fiscal Full Year 2023 Financial Results
Total net revenues for the full year ended June 30, 2023, were $52.4 million, compared to $57.3 million in the prior year period. On a constant currency basis, total net revenues were $54.7 million.
Gross profit for the full year 2023 was $16.9 million (or 32.3% of net revenues), compared with $23.7 million (or 41.5% of net revenues) in full year 2022. On a constant currency basis, gross profit for the full year 2023 was $9.2 million (or 16.8% of net revenues as measured on a constant currency basis).
Operating expenses for the full year 2023 were $25.7 million (or 49.0% of sales) compared to $24.8 million (or 43.3% of sales) for full year 2022. On a constant currency basis, operating expenses for the full year 2023 were $30.4 million (or 55.7% of sales on a constant currency basis).
GAAP net loss attributable to NETSOL for the full year ended June 30, 2023 totaled $(5.2 million) or $(0.46) per diluted share, compared with GAAP net loss of $(851,000) or $(0.08) per diluted share for the full year ended June 30, 2022. On a constant currency basis, GAAP net loss attributable to NETSOL for the full year 2023 totaled $(12.3 million) or $(1.09) per diluted share. Included in GAAP net loss attributable to NETSOL was a gain of $6.7 million on foreign exchange currency, compared to a gain of approximately $4.3 million in the prior year period. On a constant currency basis, NETSOL realized a gain of $9.4 million on foreign currency transactions for the full year 2023.
Non-GAAP adjusted EBITDA for the full year 2023 was a loss of $(2.3 million) or $(0.20) per diluted share, compared with non-GAAP adjusted EBITDA of $1.8 million or $0.16 per diluted share in the full year 2022 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).
At June 30, 2023, cash and cash equivalents were $15.5 million. Total NETSOL stockholders’ equity at June 30, 2023 was $36.8 million, or $3.24 per share.
Management Commentary
NETSOL Co-Founder, Chairman and Chief Executive Officer Najeeb Ghauri stated, “From a financial perspective, our fourth quarter results fell short of our goals and expectations. However, this past quarter and full fiscal year was characterized by progress advancing our three core growth drivers that we believe will give current and prospective shareholders reason to be optimistic about what’s on the horizon for NETSOL. We continue to drive our transition to SaaS-based, recurring revenue and we’re seeing positive sequential and year-over-year growth, highlighted by our full-year subscription and support revenues exceeding our stated target of $25 million. As we seek interest from existing customers in converting to SaaS pricing and with new clients purchasing SaaS and cloud-based solutions, we expect our subscription and support revenues to be positioned for continued growth.
“Our ongoing transition to SaaS based pricing has also allowed us to implement significant cost reduction strategies across our business including the reduction of our head count by what we expect to be approximately 300 after a period of severance required by local laws that extend into the first and second quarters of fiscal 2024. As we continue to drive these initiatives, we expect to be able to better allocate capital to the growing, higher margin part of our business to drive profitability. Additionally, we continue to make strides on our expansion strategy into the North American markets. As previously mentioned, we have established a facility in Austin, Texas to support our United States operations, and we’re taking the time to staff it with the most qualified individuals to efficiently grow our business in this region.
“Our established markets throughout the Asia-Pacific region and Europe remain strong, and our pipeline continues to be active with several potential licensing deals in the works. We believe that we have the pieces in place to generate long-term growth for our business, and given our healthy pipeline, we are targeting $61 million to $63 million in revenue for the full fiscal year 2024, or 16% to 20% revenue growth. We are not satisfied with our current results, but we have a strategy in place that we are focusing our time, energy, and patience on executing, and we believe that this will yield long-term, sustainable growth and positive results for NETSOL.”
Conference Call
NETSOL Technologies management will hold a conference call today (September 22, 2023) at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these financial results. A question-and-answer session will follow management's presentation.
U.S. dial-in: 877-407-0789
International dial-in: 201-689-8562
Please call the conference telephone number 5-10 minutes prior to the start time or use this link for telephone access to the call via your web browser. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Investor Relations at 818-222-9195.
The conference call will be broadcasted live and available for replay here and via the Company Information section of NETSOL’s website.
A telephone replay of the conference call will be available approximately three hours after the call concludes through Friday, October 6, 2023.
Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay ID: 13741014
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent® – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance, as well as the delay in recovery or a prolonged economic downturn that effects our Company, our customers and the world economy. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.
Investor Relations Contact:
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
NETSOL Technologies, Inc. and Subsidiaries Schedule 1: Consolidated Balance Sheets | |||||||||
As of | As of | ||||||||
ASSETS | June 30, 2023 | June 30, 2022 | |||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 15,533,254 | $ | 23,963,797 | |||||
Accounts receivable, net of allowance of $420,354 and $166,231 | 11,714,422 | 8,669,202 | |||||||
Revenues in excess of billings, net of allowance of $1,380,141 and $136,976 | 12,377,677 | 14,571,776 | |||||||
Other current assets | 1,978,514 | 2,223,361 | |||||||
Total current assets | 41,603,867 | 49,428,136 | |||||||
Revenues in excess of billings, net - long term | - | 853,601 | |||||||
Property and equipment, net | 6,161,186 | 9,382,624 | |||||||
Right of use assets - operating leases | 1,151,575 | 969,163 | |||||||
Long term investment | 25,396 | 1,059,368 | |||||||
Other assets | 6,931 | 25,546 | |||||||
Intangible assets, net | 127,931 | 1,587,670 | |||||||
Goodwill | 9,302,524 | 9,302,524 | |||||||
Total assets | $ | 58,379,410 | $ | 72,608,632 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued expenses | $ | 6,552,181 | $ | 6,813,541 | |||||
Current portion of loans and obligations under finance leases | 5,779,510 | 8,567,145 | |||||||
Current portion of operating lease obligations | 505,237 | 548,678 | |||||||
Unearned revenue | 7,932,306 | 4,901,562 | |||||||
Total current liabilities | 20,769,234 | 20,830,926 | |||||||
Loans and obligations under finance leases; less current maturities | 176,229 | 476,223 | |||||||
Operating lease obligations; less current maturities | 652,194 | 447,260 | |||||||
Total liabilities | 21,597,657 | 21,754,409 | |||||||
Stockholders' equity: | |||||||||
Preferred stock, $.01 par value; 500,000 shares authorized; | - | - | |||||||
Common stock, $.01 par value; 14,500,000 shares authorized; | |||||||||
12,284,887 shares issued and 11,345,856 outstanding as of June 30, 2023 | |||||||||
12,196,570 shares issued and 11,257,539 outstanding as of June 30, 2022 | 122,850 | 121,966 | |||||||
Additional paid-in-capital | 128,476,048 | 128,218,247 | |||||||
Treasury stock (at cost, 939,031 shares | |||||||||
as of June 30, 2023 and June 30, 2022) | (3,920,856 | ) | (3,920,856 | ) | |||||
Accumulated deficit | (44,896,186 | ) | (39,652,438 | ) | |||||
Other comprehensive loss | (45,975,156 | ) | (39,363,085 | ) | |||||
Total NetSol stockholders' equity | 33,806,700 | 45,403,834 | |||||||
Non-controlling interest | 2,975,053 | 5,450,389 | |||||||
Total stockholders' equity | 36,781,753 | 50,854,223 | |||||||
Total liabilities and stockholders' equity | $ | 58,379,410 | $ | 72,608,632 | |||||
NETSOL Technologies, Inc. and Subsidiaries Schedule 2: Consolidated Statement of Operations | |||||||||||||||||
For the Three Months | For the Years | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net Revenues: | |||||||||||||||||
License fees | $ | 20,735 | $ | 952,386 | $ | 2,269,564 | $ | 4,539,260 | |||||||||
Subscription and support | 6,805,076 | 6,124,961 | 25,980,661 | 28,284,759 | |||||||||||||
Services | 6,964,538 | 6,467,083 | 24,142,990 | 24,423,960 | |||||||||||||
Total net revenues | 13,790,349 | 13,544,430 | 52,393,215 | 57,247,979 | |||||||||||||
Cost of revenues | 8,974,275 | 8,727,436 | 35,477,652 | 33,510,805 | |||||||||||||
Gross profit | 4,816,074 | 4,816,994 | 16,915,563 | 23,737,174 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling, general and administrative | 7,366,072 | 5,789,737 | 24,093,908 | 23,473,343 | |||||||||||||
Research and development cost | 356,820 | 580,533 | 1,601,613 | 1,342,154 | |||||||||||||
Total operating expenses | 7,722,892 | 6,370,270 | 25,695,521 | 24,815,497 | |||||||||||||
Loss from operations | (2,906,818 | ) | (1,553,276 | ) | (8,779,958 | ) | (1,078,323 | ) | |||||||||
Other income and (expenses) | |||||||||||||||||
Interest expense | (252,920 | ) | (92,064 | ) | (765,030 | ) | (369,801 | ) | |||||||||
Interest income | 212,293 | 532,336 | 1,217,850 | 1,655,883 | |||||||||||||
Gain on foreign currency exchange transactions | (610,481 | ) | 1,642,910 | 6,748,038 | 4,327,590 | ||||||||||||
Share of net loss from equity investment | (1,040,753 | ) | (1,703,899 | ) | (1,033,243 | ) | (2,021,480 | ) | |||||||||
Other income (expense) | (662,953 | ) | (234,574 | ) | (605,570 | ) | (424,128 | ) | |||||||||
Total other income (expenses) | (2,354,814 | ) | 144,709 | 5,562,045 | 3,168,064 | ||||||||||||
Net income (loss) before income taxes | (5,261,632 | ) | (1,408,567 | ) | (3,217,913 | ) | 2,089,741 | ||||||||||
Income tax provision | (285,438 | ) | (462,201 | ) | (926,560 | ) | (988,938 | ) | |||||||||
Net income (loss) | (5,547,070 | ) | (1,870,768 | ) | (4,144,473 | ) | 1,100,803 | ||||||||||
Non-controlling interest | 472,354 | (296,672 | ) | (1,099,275 | ) | (1,951,959 | ) | ||||||||||
Net income (loss) attributable to NetSol | $ | (5,074,716 | ) | $ | (2,167,440 | ) | $ | (5,243,748 | ) | $ | (851,156 | ) | |||||
Net income (loss) per share: | |||||||||||||||||
Net income (loss) per common share | |||||||||||||||||
Basic | $ | (0.45 | ) | $ | (0.19 | ) | $ | (0.46 | ) | $ | (0.08 | ) | |||||
Diluted | $ | (0.45 | ) | $ | (0.19 | ) | $ | (0.46 | ) | $ | (0.08 | ) | |||||
Weighted average number of shares outstanding | |||||||||||||||||
Basic | 11,308,571 | 11,252,539 | 11,279,966 | 11,250,219 | |||||||||||||
Diluted | 11,308,571 | 1,252,539 | 11,279,966 | 11,250,219 | |||||||||||||
NETSOL Technologies, Inc. and Subsidiaries Schedule 3: Consolidated Statement of Cash Flows | |||||||||
For the Years | |||||||||
Ended June 30, | |||||||||
2023 | 2022 | ||||||||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ | (4,144,473 | ) | $ | 1,100,803 | ||||
Adjustments to reconcile net income (loss) to net cash | |||||||||
provided by operating activities: | |||||||||
Depreciation and amortization | 3,244,538 | 3,812,273 | |||||||
Provision for bad debts | 1,702,744 | 23,388 | |||||||
Goodwill impairment | - | 214,044 | |||||||
Impairment and share of net loss from investment under equity method | 2,113,430 | 2,021,480 | |||||||
Loss on sale of assets | 19,721 | 205,288 | |||||||
Stock based compensation | 317,451 | 104,347 | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | (6,860,983 | ) | (5,669,262 | ) | |||||
Revenues in excess of billing | 1,514,305 | (1,273,693 | ) | ||||||
Other current assets | (131,108 | ) | 469,194 | ||||||
Accounts payable and accrued expenses | 709,758 | 1,121,308 | |||||||
Unearned revenue | 3,524,188 | 931,452 | |||||||
Net cash provided by operating activities | 2,009,571 | 3,060,622 | |||||||
Cash flows from investing activities: | |||||||||
Purchases of property and equipment | (1,639,438 | ) | (2,609,205 | ) | |||||
Sales of property and equipment | 240,207 | 349,058 | |||||||
Net cash used in investing activities | (1,399,231 | ) | (2,260,147 | ) | |||||
Cash flows from financing activities: | |||||||||
Purchase of treasury stock | - | (100,106 | ) | ||||||
Purchase of subsidiary treasury stock | (61,124 | ) | (950,352 | ) | |||||
Proceeds from bank loans | 270,292 | 941,841 | |||||||
Payments on finance lease obligations and loans - net | (928,160 | ) | (1,270,104 | ) | |||||
Net cash used in financing activities | (718,992 | ) | (1,378,721 | ) | |||||
Effect of exchange rate changes | (8,321,891 | ) | (9,163,111 | ) | |||||
Net decrease in cash and cash equivalents | (8,430,543 | ) | (9,741,357 | ) | |||||
Cash and cash equivalents at beginning of the period | 23,963,797 | 33,705,154 | |||||||
Cash and cash equivalents at end of period | $ | 15,533,254 | $ | 23,963,797 | |||||
NETSOL Technologies, Inc. and Subsidiaries Schedule 4: Reconciliation to GAAP | ||||||||||||||||
For the Three Months | For the Years | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net Income (loss) attributable to NetSol | $ | (5,074,716 | ) | $ | (2,167,440 | ) | $ | (5,243,748 | ) | $ | (851,156 | ) | ||||
Non-controlling interest | (472,354 | ) | 296,672 | 1,099,275 | 1,951,959 | |||||||||||
Income taxes | 285,438 | 462,201 | 926,560 | 988,938 | ||||||||||||
Depreciation and amortization | 725,069 | 942,602 | 3,244,538 | 3,812,273 | ||||||||||||
Interest expense | 252,920 | 92,064 | 765,030 | 369,801 | ||||||||||||
Interest (income) | (212,293 | ) | (532,336 | ) | (1,217,850 | ) | (1,655,883 | ) | ||||||||
EBITDA | $ | (4,495,936 | ) | $ | (906,237 | ) | $ | (426,195 | ) | $ | 4,615,932 | |||||
Add back: | ||||||||||||||||
Non-cash stock-based compensation | 118,892 | 26,122 | 317,451 | 104,347 | ||||||||||||
Adjusted EBITDA, gross | $ | (4,377,044 | ) | $ | (880,115 | ) | $ | (108,744 | ) | $ | 4,720,279 | |||||
Less non-controlling interest (a) | 208,924 | (520,736 | ) | (2,154,850 | ) | (2,903,457 | ) | |||||||||
Adjusted EBITDA, net | $ | (4,168,120 | ) | $ | (1,400,851 | ) | $ | (2,263,594 | ) | $ | 1,816,822 | |||||
Weighted Average number of shares outstanding | ||||||||||||||||
Basic | 11,308,571 | 11,252,539 | 11,279,966 | 11,250,219 | ||||||||||||
Diluted | 11,308,571 | 11,252,539 | 11,279,966 | 11,250,219 | ||||||||||||
Basic adjusted EBITDA | $ | (0.37 | ) | $ | (0.12 | ) | $ | (0.20 | ) | $ | 0.16 | |||||
Diluted adjusted EBITDA | $ | (0.37 | ) | $ | (0.12 | ) | $ | (0.20 | ) | $ | 0.16 | |||||
(a)The reconciliation of adjusted EBITDA of non-controlling interest | ||||||||||||||||
to net income attributable to non-controlling interest is as follows | ||||||||||||||||
Net Income (loss) attributable to non-controlling interest | $ | (472,354 | ) | $ | 296,672 | $ | 1,099,275 | $ | 1,951,959 | |||||||
Income Taxes | 54,809 | 98,614 | 253,158 | 258,468 | ||||||||||||
Depreciation and amortization | 191,326 | 256,201 | 905,002 | 1,096,709 | ||||||||||||
Interest expense | 79,233 | 27,515 | 237,162 | 109,361 | ||||||||||||
Interest (income) | (65,708 | ) | (164,421 | ) | (369,197 | ) | (526,567 | ) | ||||||||
EBITDA | $ | (212,694 | ) | $ | 514,581 | $ | 2,125,400 | $ | 2,889,930 | |||||||
Add back: | ||||||||||||||||
Non-cash stock-based compensation | 3,770 | 6,155 | 29,450 | 13,527 | ||||||||||||
Adjusted EBITDA of non-controlling interest | $ | (208,924 | ) | $ | 520,736 | $ | 2,154,850 | $ | 2,903,457 |
NETSOL management will host the presentation, followed by a question-and-answer period.
Date: Friday, September 22, 2023
Time: 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time)
Toll-Free Dial-In: 877-407-0789
International Dial-In: 201-689-8562
Please call the conference telephone number 10 minutes prior to the start time or use this link for telephone access to the call via your web browser. An operator will register your name and organization.
The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.
A telephone replay of the conference call will be available approximately three hours after the call concludes through Friday, October 6, 2023.
Toll-Free Replay Dial-In: 844-512-2921
International Replay Dial-In: 412-317-6671
Replay ID: 13741014
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1750 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Investor Relations Contact:
IMS Investor Relations
(203) 972-9200
netsol@imsinvestorrelations.com
AWS Lambda allows businesses to run code without provisioning or managing servers, providing a flexible and scalable platform for developing modern applications. NETSOL Cloud Services has demonstrated deep expertise in leveraging AWS Lambda to help businesses improve agility, reduce infrastructure costs, accelerate time-to-market for their applications, and utilize the power of serverless computing to manage infrastructure more efficiently.
“We’re thrilled to receive the AWS Lambda Service Delivery designation,” commented Peter Minshall, Executive Vice President. “This recognition validates our expertise in leveraging AWS Lambda to enable organizations to harness the power of serverless computing. As an APN Consulting Partner, NETSOL Cloud Services remains dedicated to delivering exceptional value to its customers and helping them navigate their cloud journey with confidence by optimizing their infrastructure and driving innovation.”
About NETSOL Cloud Services
NETSOL Cloud Services is a leading provider of cloud services, offering a comprehensive range of solutions designed to help businesses of all sizes leverage the power of the cloud to achieve their goals. Our cloud services are built on a highly scalable and reliable infrastructure, powered by industry-leading technologies and backed by a team of expert engineers and support staff.
Visit us at https://netsolcloudservices.com/
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1750 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Media Contact:
Mahnoor Bhatti
Marketing and Brand Manager
NETSOL Cloud Services
Email: mahnoor.bhatti@netsoltech.com
Investor Relations Contact
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
Inclusion in the AWS Well-Architected Partner Program highlights NETSOL Cloud Services' commitment to designing, building, and maintaining secure, reliable, and efficient cloud architectures, and demonstrates its ability to optimize performance, security, reliability, cost efficiency, and operational excellence for clients.
"As an AWS Well-Architected Partner, we are proud to be recognized for our dedication to delivering cutting-edge cloud solutions aligned with industry best practices," said Raj Harjika, VP of Technology at NETSOL Cloud Services. "This achievement showcases our team's expertise and commitment to helping our clients succeed in their digital transformation journey by leveraging the power of the AWS platform."
As an AWS Well-Architected Partner, NETSOL Cloud Services will continue to guide clients through the AWS ecosystem, delivering tailored cloud advisory services that optimize workloads and enhance security measures to ensure peak operational efficiency. This recognition further showcases NETSOL Cloud Services' ability to deliver innovative cloud solutions that provide a competitive edge and drive industry growth.
"We are proud to be recognized as an AWS Well-Architected Partner," said Najeeb Ghauri, CEO of NETSOL Technologies, America. "This distinction validates our team's expertise and dedication to helping clients achieve their business objectives through cloud technology."
About NETSOL Cloud Services
NETSOL Cloud Services is a leading provider of cloud services, offering a comprehensive range of solutions designed to help businesses of all sizes leverage the power of the cloud to achieve their goals. Our cloud services are built on a highly scalable and reliable infrastructure, powered by industry-leading technologies and backed by a team of expert engineers and support staff.
Visit us at https://netsolcloudservices.com/
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1750 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Media Contact:
Mahnoor Bhatti
Marketing and Brand Manager
NETSOL Cloud Services
Email: mahnoor.bhatti@netsoltech.com
Investor Relations Contact
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
Previously, NETSOL had already attained SOC 2 Type 1 Compliance. By further attaining SOC 2 Type 2 compliance, the Company continues to demonstrate its dedication to safeguarding the data of its clients and their customers. This achievement affirms that all system requirements have been met in accordance with the security standards outlined by AICPA (the American Institute of Certified Public Accountants), as defined by the applicable trust services criteria.
“Serving a diverse range of clients across the world, we comprehend the significance of data protection and our clients are rest assured that their data, and the data of their customers, is handled in accordance with the most stringent security standards available,” said Najeeb Ghauri, Founder and CEO of NETSOL Technologies, Inc. “Achieving SOC 2 Type 2 compliance showcases our successful implementation of robust controls on a global scale, ensuring that risks related to security, integrity, and confidentiality of data are effectively addressed.”
The examination of the Company’s suite of products and software services was carried out at its Calabasas, California; London, England; Beijing, China; Sydney, Australia and Lahore, Pakistan facilities.
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1750 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
About A-LIGN
A-LIGN uniquely delivers a single-provider approach as a licensed SOC 1 and SOC 2 Assessor, accredited ISO 27001, ISO 27701 and ISO 22301 Certification Body, HITRUST CSF Assessor firm, accredited FedRAMP 3PAO, candidate CMMC C3PAO, and Qualified Security Assessor Company. A-LIGN ASSURANCE is a licensed certified public accounting firm registered as Price and Associates CPAs, LLC. A-LIGN may refer to the entities of both A-LIGN and A-LIGN ASSURANCE collectively as A-LIGN. For more information, visit www.A-LIGN.com.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200
With over twenty years in the receivables and asset finance software industry, Mr. Lewis is a highly experienced and accomplished leader with a track record of driving business growth and creating innovative solutions for clients. Prior to joining NETSOL, Mr. Lewis has held executive roles at several leading asset finance software companies where he led teams responsible for developing and implementing successful software solutions. He last served as Global Sales Director for Lendscape, the world’s leading technology provider for all forms of secured finance and secured lending software solutions.
“We’re pleased to have Darryll join the NETSOL team as our new Managing Director for NETSOL Technologies Europe. I am confident that under his guidance and leadership we will continue to evolve and deliver exceptional value to our clients, particularly in the United Kingdom and larger European region,” said Najeeb Ghauri, Founder and CEO of NETSOL Technologies, Inc. “His extensive experience has empowered him with a deep understanding of the industry and the knowledge to deliver strong outcomes for our clients. Darryll brings a unique blend of technical expertise, strategic thinking, and exceptional leadership abilities to NETSOL, and we believe that his focus on building strong client relationships and driving innovation aligns perfectly with our Company's mission and values. I look forward to working closely with him.”
Commenting on his new appointment, Mr. Lewis said, “I am delighted to be appointed as Managing Director of NETSOL Europe. NETSOL is a recognized global leader in fintech IT and SaaS-based offerings to the global leasing and finance industry. I am looking forward to building on existing and new client relationships to drive innovation for the Asset Finance market, and I’m fortunate to be joining and leading a team that is already delivering exceptional value to NETSOL’s clients.”
About NETSOL Technologies
NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1750 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Investor Relations Contact
IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200