Calabasas software firm NetSol Technologies reported a significant increase in net revenues in its 2016 fiscal second quarter, which the company attributes to growth in its services.

Net income was $875,000 (8 cents a share) for the second fiscal quarter ended Dec. 31, 2015, compared with a net loss of $1.4 million (-14 cents) for the same quarter a year ago. Revenue increased 31 percent to $16.2 million.

Analysts on average had expected a loss of -1 cent a share on revenue of $13.5 million, according to Thomson Financial.

“NetSol is at an important inflection point, with leverage continuing to build in our business model as a result of multiple large contracts underway,” Chief Executive of NetSol Najeeb Ghauri said in a statement. “As we implement agreements already signed in Europe, along with the recently announced 12-country NFS Ascent implementation, we anticipate a strong year ahead.”

Shares closed down 7 cents, or nearly 1 percent, to $7.23 on the Nasdaq.