NetSol Technologies swings to profit in FY08 Q1

Jennifer Schonberger | Nov 08, 2007 9:22am EST | Comment

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Shares of NetSol Technologies Inc. (Nasdaq: NTWK) are rocketing in pre-market trading after the multinational provider of IT services and enterprise software reported that it swung to a profit in its fiscal first quarter 2008 and booked record revenues.

For the first three months ended Sept. 30, the Calabasas, Calif.-based company recorded GAAP net income of $1.8 million, or $0.08 per share, compared with a GAAP net loss of $1.3 million, or $0.08 per share, in the first quarter of fiscal 2007. An analyst polled by Thomson Financial was forecasting EPS of $0.03 for the quarter.

NetSol booked record revenues of $8.7 million, representing a 48% increase over the $5.9 million in revenues reported for the same period in fiscal 2007. An analyst polled by Thomson Financial was estimating revenues of $8.55 million.

The company said results were driven by robust double digit growth in services, license sales and maintenance fees. NetSol noted growth in its IT consulting services business was exceptionally strong as the company expanded into the market for Hospital Management Systems with a new contract with a major public sector hospital.

Shares of NetSol Technologies (NTWK) jumped 25.68%, or $0.95, to $4.65 in pre-market trading. Shares of NetSol Technologies have been trading in the range of $1.27 to $4.61 for the past 52 weeks.