The Calabasas software developer for the vehicle and equipment leasing markets reported on Monday net income of $1.2 million (10 cents a share) for the quarter ending June 30, compared with net income of $3.5 million (30 cents) in the same period a year earlier. Revenue dropped by 21 percent to $13.6 million.
The company attributed the revenue drop to a decrease in license fees of $2.3 million and a decrease in services revenues of $1.8 million, which was offset by an increase in maintenance fees of $312,000.
The single analyst following the company estimated revenue at $13.8 million, according to Thomson Financial Network. There was no estimate on earnings.
Chief Executive Najeeb Ghauri said that while the company experienced a challenging market environment, it was still able to record meaningful sales milestones that resulted in incrementally improved results.
“Over the past few months, we, like most businesses, were forced to adapt to a radically different working environment than we had planned,” Ghauri said in a statement. “Despite these unfavorable conditions, we have continued to forge a path ahead and, in the meantime, have taken decisive actions to reduce costs, which will support our long-term sustainability.”Shares of Netsol (NTWK) closed Monday up 21 cents, or nearly 8 percent, to $2.89 on the Nasdaq, on a day when that market closed up about 1.9 percent.