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NetSol Technologies Announces Second Quarter Fiscal 2011 Financial Results

  • Revenues were $10.4M, up 9.5% from $9.5M in 2QFY10
  • Net Income was $1.9M, up from a $0.4M net loss in 2QFY10
  • Gross margin was 66.5%, up from 62.2% in 2QFY10

CALABASAS, Calif., Feb. 10, 2011 (GLOBE NEWSWIRE) -- NetSol Technologies, Inc. ("NetSol" or the "Company") (Nasdaq:NTWK) (Nasdaq Dubai:NTWK), a U.S. corporation providing global business services and enterprise application solutions to private and public sector organizations worldwide, today announced its financial results for the second fiscal quarter ended December 31, 2010. The Company posted revenues of $10.4 million and quarterly net income of $1.9 million, or $0.04 per diluted share. These results compare to revenue of $9.5 million and a quarterly net loss of $0.4 million, or $0.01 per diluted share, for the same period last year. Summary financial data is provided below:

Second Quarter Fiscal 2011 Financial Highlights

  • Revenues for the second quarter of fiscal year 2011 increased by 9.5% year-over-year to $10.4 million, up from $9.5 million in the second quarter of fiscal 2010.
  • License fees totaled $3.1 million or 30.0% of total revenues.
  • Maintenance fees totaled $2.0 million or 19.4% of total revenues.
  • Service fees totaled $5.3 million or 50.6% of total revenues.
  • Net income attributable to NetSol for the second quarter increased to $1.9 million, compared with a net loss of $0.4 million for the second quarter of fiscal 2010.  
  • Gross margin for the second quarter was 66.5% based on gross profit of $6.9 million, compared with a 62.2% margin and gross profit of $5.9 million in the same period last year.   
  • Operating income and operating margin for the second quarter were $3.9 million and 37.4%, respectively, compared to $1.7 million and 17.8%, respectively, in the second quarter of fiscal 2010.   
  • EBITDA totaled $3.2 million or $0.06 per diluted share, versus EBITDA of $0.9 million, or $0.03 per diluted share, in the year-ago period.   
  • Earnings per diluted share were $0.04 for the quarter, compared with a loss per share of $0.01 in the same period a year ago.

Six Months Financial Highlights

  • Revenue for the six months ended December 31, 2010 increased by 9.8% year-over-year to $18.8 million, up from $17.1 million for the six months ended December 31, 2009.   
  • Net income attributable to NetSol for the first half of fiscal 2011 increased to $3.5 million, compared with a net loss of $0.7 million for the six months ended December 31, 2009.   
  • Gross margin for the six months ended December 31, 2010 was 64.5% based on gross profit of $12.2 million, up from a 58.2% margin and gross profit of $10.0 million in the same period last year.    
  • Operating income and operating margin for the six months ended December 31, 2010 were $5.9 million and 31.5%, respectively, compared to operating income of $2.8 million and a 16.6% operating margin for the same period last year.    
  • EBITDA totaled $6.0 million or $0.13 per diluted share, versus EBITDA of $2.2 million, or $0.06 per diluted share, in the year-ago period.   
  • Earnings per diluted share were $0.08 for the six-month period, compared with a loss per diluted share of $0.02 in the same period a year ago.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. The Company uses EBITDA as a measure of the Company's operating trends. Investors are cautioned that EBITDA is not a measure of liquidity or of financial performance under Generally Accepted Accounting Principles (GAAP). The EBITDA numbers presented may not be comparable to similarly titled measures reported by other companies. EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with the SEC's Regulation G, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measure, and this reconciliation is located under the financial table heading "Reconciliation to GAAP."

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