NetSol Technologies' full-year license fees clock in at half of last year’s total; shares sink

NetSol Technologies Inc (NASDAQ:NYWK) topped revenue expectations in its fiscal fourth-quarter earnings, but its full-year license fees were less than half the previous year’s total.

Shares fell more than 6% to $6.25 in Wednesday morning trading.

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The software company reported earnings of $0.10 per share on revenue of $16.6 million compared with a net loss of $0.28 on revenue of $14.5 million in the previous year’s fourth quarter. The California-based company surpassed Wall Street expectations of revenue of $14.48 million.

License fees totaled $3.4 million in the fourth quarter, compared with $3.3 million in the prior year period. However, total license fees for the full-year were $6.9 million, less than half the $18.5 million total in the previous fiscal year.

Netsol cites the decrease in total license fees for the dip in its full-year revenue.

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The company reported full-year earnings of $0.92 per share on revenue of $60.9 million compared with $0.26 per share on revenue of US$65.4 million in the previous fiscal year.

Netsol ended its fourth quarter with $22.1 million in cash on hand, an increase from $14.2 million last year.

For the year ahead, CEO Najeeb Ghauri has a rosy outlook.

“Looking ahead, if 2018 was about transformation for NETSOL, then the beginning of 2019 has represented the inflection point that, we believe, will propel us to double-digit topline growth for the year,” said Ghauri in the company’s press release.

The tech company provides IT and enterprise software solutions, primarily to the global leasing and finance industry.

Story by ProactiveInvestors