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Thursday, Nov 21, 2024

NetSol Shares Jump on Strong Quarterly Results

NetSol Technologies Inc. emerged from its recently completed 2021 fiscal year stronger than before, according to its chief executive, sparking a double-digit gain in share price.

The Calabasas vehicle and equipment leasing software developer reported on Tuesday net income of $1.9 million (17 cents a share) for the quarter ending June 30, compared with net income of $1.2 million (10 cents) in the same period a year earlier. Revenue increased by 13 percent to $15.4 million.

One analyst who follows the company forecast revenue of $13.6 million but no earnings figure, according to Thomson Financial Network.

Najeeb Ghauri, co-founder and chief executive of NetSol, said that in challenging year, the company had emerged stronger than before and entered its fiscal 2022 year focused on a return to growth.

“As the world slowly begins to reopen and with a leaner cost structure to support increased sales and marketing activities, we are making investments to build for long-term success in our key growth markets,” Ghauri said in a statement.

The company’s North American and European pipelines have shown promise and the company is starting to see some pending deals come to fruition, including its first contract for NFS Ascent in the U.S., Ghauri added.

In August, NetSol announced that Motorcycle Group, the operator of two websites for motorcycle leases and loans, would use the cloud-based NFS Ascent platform to support its lending and leasing.

The earnings were released after the market closed on Tuesday. Shares of  NetSol (NTWK) closed Wednesday up 50 cents, or more than 12 percent, to $4.60 on the Nasdaq, on a day when that market closed down a fraction of a percent.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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