COVID Economy Yields Quarterly Loss for NetSol Technologies

NetSol Technologies Inc. reported lower earnings and revenue for the fiscal second quarter.The Calabasas software developer for the vehicle and equipment leasing markets reported on Tuesday a net loss of $242,000 (-2 cents a share) for the quarter ending Dec. 31, compared with net income of $586,000 (5 cents) in the same period a year earlier.

Revenue decreased 17 percent to $13.1 million.The company attributed the revenue drop to a decrease in total service revenues to $4.8 million, which was offset by an increase in total license fees to $2.5 million and an increase in total subscription and support revenues to $5.7 million.Chief Executive Najeeb Ghauri said in a statement the fiscal second quarter saw incremental improvements with early stages of return to work as the coronavirus vaccines began their roll out toward the end of last year.During the quarter, NetSol expanded its software-as-a-service-based footprint through a multi-million upgrade as well as through several large-scale implementations of its software to drive the recurring revenue base close to $6 million, Ghauri said.“We also recorded nearly $1.5 million in change requests from current customers, another encouraging data point for the improving health of the industries we serve and the economy as a whole,” he added.Shares of NetSol (NTWK) closed down 4 cents, or less than 1 percent, to $5.21 on the Nasdaq, on a day when that market closed down at a fraction of a percent.