This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

NetSol Responds To Factual Inaccuracies In Seeking Alpha Article

CALABASAS, Calif., Oct. 3, 2013 (GLOBE NEWSWIRE) -- NetSol Technologies, Inc. (Nasdaq:NTWK), a worldwide provider of global IT and enterprise application solutions, today issued the following statement in response to an article published Wednesday, October 2, 2013 in Seeking Alpha:

R&D Expense: When modeling the company and calculating research and development expense, the author fails to include amortization from the past year. In fact, by not including it, an investor would be double counting, a fundamental error. NetSol has capitalized costs for all projects that have established technological feasibility. 

Accounts Receivable: The author erroneously aggregates the accounts receivable and revenues in excess of billings when calculating Days Sales Outstanding (DSO). Furthermore, the author is misleading in his description of NetSol's accounts receivable because he does not factor the payment cycles of customers in foreign countries, many of which are Fortune 500 manufacturers, global automakers, and financial institutions. In addition, a majority of NetSol's customers are in Asia where the duration of payment cycles are longer than in the United States. NetSol continues to report a decrease in DSO. For the period ended June 30, 2013, DSO was 106, compared with 127 days in the corresponding period last year. 

CFO and Auditors: NetSol has been a publicly traded company for more than a decade and has full confidence in its financial staff, which must undergo rigorous due diligence checks. NetSol hired its new CFO for his breadth of accounting and finance experience. He is a certified public accountant, with nearly 20 years of experience working in accounting, 13 of which were in public accounting. The author notes that NetSol's CFO has only 13-plus years of experience without citing his other work experience. The author also draws misleading connections between the CFO's firm and various companies.

Additionally, NetSol's auditors were approved by shareholders and have a strong presence in Pakistan, an important characteristic for the company. They, like other accounting firms across the industry, have encountered challenges with China-based reverse mergers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs