Application SoftwareNetSol Technologies, Inc. Third Quarter Fiscal Year 2010 Earnings Call
When: Wednesday, May 12, 2010 at 11:00 a.m. ET (8:00 a.m. Pacific)
To participate in the call please dial (877) 941-1429, or (480) 629-9666 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found at the Company's website at http://www.netsoltech.com.
A replay of the call will be available for two weeks from 2:00 p.m. May 12, 2010, EDT until 11:59 p.m. EDT on May 26, 2010. The number for the replay is (800) 406-7325, or (303) 590-3030 for international calls; the passcode for the replay is 4294953. In addition, a recording of the call will be available via the Company's website at http://www.netsoltech.com for one year.
When: Wednesday, May 12, 2010 at 11:00 a.m. ET (8:00 a.m. Pacific)
To participate in the call please dial (877) 941-1429, or (480) 629-9666 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found at the Company's website at http://www.netsoltech.com.
A replay of the call will be available for two weeks from 2:00 p.m. May 12, 2010, EDT until 11:59 p.m. EDT on May 26, 2010. The number for the replay is (800) 406-7325, or (303) 590-3030 for international calls; the passcode for the replay is 4294953. In addition, a recording of the call will be available via the Company's website at http://www.netsoltech.com for one year.
http://www.redchip.com/files/redchipReports/NTWK_InitialReport.pdf NetSol's global footprint, low labor costs, proven quality, and software with the ability to consolidate an unprecedented variety of global IT functions in one location for credit-based businesses have allowed the Company to build a diversified blue chip client base. While approximately 60% of NetSol's revenues are currently derived from its NetSol Financial SuiteT, it must be noted that the Company is involved in varying degrees with several initiatives that could ultimately surpass the scale of its business with credit-based businesses. These opportunities include defense, health care, land records management, property and casualty insurance, and SAP-compatible software. Trading close to its GAAP book value and at what we believe is an unreasonably low 6.3x projected fiscal 2011 earnings, we are initiating coverage of NTWK with a Strong Buy rating and a price target of $3.00.
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Value Proposition
NetSol is an IT enterprise solutions company with a blue-chip client base. This is a classic turn-around situation that has recovered brilliantly from the recession. Its current back-log and sales pipe-line will support the Company’s return to profitability for FY10. The Company is confident it will maintain and improve the bottom line to sustainable profitability going into FY11. We estimate the potential upside from current stock levels is 150%-320%. Buy as much as you can below $1.00 to maximize your ROI.
Investment Highlights
Financial Highlights
Overview
NetSol Technologies, Inc. (NasdaqCM: NTWK; Nasdaq Dubai: NTWK) is a worldwide provider of global business services and enterprise application solutions. Founded in 1995, NTWK offers high-quality, cost-effective software solutions specialized by industry. Their product and services offerings include credit and finance portfolio management systems, hospital/healthcare information management systems (HIMS), SAP consulting and services, custom development, systems integration, and technical services globally. The Company has over 750 employees and is headquartered in Calabasas, CA with operations and offices in Alameda, CA; Adelaide, Australia; Bangkok, Thailand; Beijing, China; Karachi, Pakistan; Lahore, Pakistan; London, England; and Riyadh, Saudi Arabia.
NetSol is an IT enterprise solutions company with a blue-chip client base. This is a classic turn-around situation that has recovered brilliantly from the recession. Its current back-log and sales pipe-line will support the Company’s return to profitability for FY10. The Company is confident it will maintain and improve the bottom line to sustainable profitability going into FY11. We estimate the potential upside from current stock levels is 150%-320%. Buy as much as you can below $1.00 to maximize your ROI.
Investment Highlights- Client list includes diverse, multi-national, Fortune 500 manufacturers, global automakers, financial institutions, utilities, technology providers, and government agencies. Clients include Mercedes-Benz, BMW, Volkswagen, Volvo, Yamaha, Nissan, Ford, Mini, Hyundai, Capital One, Chase, and Cisco Systems.
- The Company has never lost a client in its 15 year operating history, due to the unmatched quality of its products and services.
- Projected revenue of $33 million - $35 million for FY10, which would represent year-over-year growth of 25% - 32%.
- Achieved the designation of ISO 9001, ISO 27001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Maturity Level 5 assessments, a distinction shared by fewer than 100 companies worldwide.
- In Pakistan there is a 15 year tax holiday on IT exports of services. There are 7 years remaining on NTWK’s tax incentive.
Financial Highlights
- 3QFY10 revenues grew 77.8% to $8.9 million up from $5.0 million in the same period last year.
- 3QFY10 license sales grew more than 1,022% year-over-year to $3.6 million.
- Gross margins increased over 50 percentage points to 61.3% in 3QFY10 up from 10.7% in 3QFY09.
- Net income (loss) increased significantly to $589,047, or $0.02 EPS, in 3QFY10 up from $(5.0) million, or $(0.19) EPS, in the same period last year.
Overview
NetSol Technologies, Inc. (NasdaqCM: NTWK; Nasdaq Dubai: NTWK) is a worldwide provider of global business services and enterprise application solutions. Founded in 1995, NTWK offers high-quality, cost-effective software solutions specialized by industry. Their product and services offerings include credit and finance portfolio management systems, hospital/healthcare information management systems (HIMS), SAP consulting and services, custom development, systems integration, and technical services globally. The Company has over 750 employees and is headquartered in Calabasas, CA with operations and offices in Alameda, CA; Adelaide, Australia; Bangkok, Thailand; Beijing, China; Karachi, Pakistan; Lahore, Pakistan; London, England; and Riyadh, Saudi Arabia.
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