Total operating expenses for the fiscal 2012 fourth quarter amounted to $4.2 million, versus $3.4 million in the fiscal 2011 fourth quarter, principally due to hiring additional NFS and Vroozi personnel, reflecting a more than doubling of sales activities, along with improvements to infrastructure, additional general and administrative cost of VLS acquisition, which was acquired during second quarter of fiscal 2012, and the provision of third party hardware and software to customers.Operating income for the fourth quarter of fiscal 2012 rose to $4.7 million, compared with an operating loss of $564,000 in the fourth quarter of fiscal 2011. NetSol achieved net income of $1.9 million for the fiscal fourth quarter, equal to $0.25 per diluted share, compared with a net loss of $1.1 million, or $0.19 per share, in the comparable period of the prior fiscal year. This includes a deduction of net income by $2.6 million for non-controlling interest, compared with $504,000 in the comparative period. Weighted average number of diluted shares outstanding for the period was 7.5 million shares, compared with 5.6 million shares for the fourth quarter of fiscal 2011. The company completed a 1-for-10 reverse stock split of its common stock, effective August 12, 2012. At June 30, 2012, cash and cash equivalents amounted to $7.6 million. 2012 Fourth Quarter Highlights :
- Received new orders for NetSol Financial Suite (NFS™) solution from four new customers, representing more than $9 million in combined license, maintenance, and service billings. The quarter represented NetSol's highest license revenue growth, creating a record high backlog of service billings and new maintenance revenue;
- Signed two new customers for Vroozi, bringing total customers to date to 11. Total revenue for the 2012 fiscal year for the Vroozi division grew to $1.3 million;
- Expanded operations in the Asia Pacific region, increasing delivery and support capability in China and Thailand. With the singing of Santander Consumer Finance S.A., and Chongqing Auto Finance, total customers in China alone grew to more than 16 multinationals and local Chinese companies;
- Signed strategic partnership agreements with NEC India and ABeam Consulting, Japan to jointly develop and support businesses in the asset finance and leasing industry the Asia Pacific region;
- Signed four new agreements in Saudi Arabia through AtheebNetSol, its joint venture company, in the areas of cyber security, application development and consulting. The agreements are collectively valued at approximately $2.0 million.