CALABASAS, Calif., Aug. 11, 2003 (PRIMEZONE) -- NetSol Technologies, Inc. (Nasdaq:NTWKC), a developer of proprietary software applications, has provided guidance for its fourth quarter and fiscal year 2003 ended June 30, 2003. The Company expects to report estimated revenues for the fourth quarter of $1.1 million, an increase of approximately 50 percent when compared to fourth quarter revenue reported for fiscal year 2002. EBITDA (earnings before interest, tax, deprecation and amortization) is expected to be positive for the fourth quarter. All estimates and projections are preliminary as audited financial statements will be available in mid-September.
2003 Guidance
Revenues for the first six months of fiscal 2003 were flat due in part to a slow down in the economy and the health scare in the Far East. The second half of fiscal 2003 benefited from a considerable increase in order flow and installations providing NetSol with a small but important increase in revenue for fiscal 2003 when compared to revenues reported for fiscal 2002. Cost-cutting measures have been effective and NetSol expects to report that they have reduced losses for fiscal 2003 by approximately $3 million when compared to losses reported for fiscal 2002.
2004 Guidance
"We expect to see our revenue increase between 60 and 75 percent during fiscal 2004," said NetSol CEO Naeem Ghauri. "Our recent acquisitions, our partnership with Hyundai International and the Company's SEI SW-CMM Level 3 rating positions NetSol for substantial revenue growth. Our infrastructure is strong and can support the expected growth with a minimal increase in additional costs. Our goal and focus is to become a profitable company."
"We expect the financial services sector, one of our strongest target markets, to remain strong through 2004," continued Ghauri. "Our new partnership with Hyundai should provide access to large government contracts, which we believe will assist NetSol improving revenues and return the Company to profitability."
About NetSol Technologies, Inc.
NetSol Technologies is a leading end-to-end solution provider for the lease and finance industry. Headquartered in Calabasas, CA, NetSol Technologies, Inc. operates on a global basis with locations in the U.S., Europe, East Asia and Asia Pacific. NetSol helps its clients identify, evaluate and implement technology solutions to meet their most critical business challenges and maximize their bottom line. By utilizing its worldwide resources, NetSol has been delivering high-quality, cost-effective IT services ranging from consulting and application-development to systems integration and outsourcing for years. Their commitment to quality is demonstrated by achieving both ISO 9001 and SEI (Software Engineering Institute) CMM (Capability Maturity Model) Level 3 assessment. For additional information, please visit www.netsoltek.com.
Securities Exchange Act of 1934
This release is comprised of inter-related information that must be interpreted in the context of all the information provided; accordingly, care should be exercised not to consider portions of this release out of context. This release is provided in compliance with Commission Regulation FD and contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumption or future events or performance, are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur. Such statements reflect the current views of NetSol Technologies with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of the underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed or expected. NetSol Technologies does not intend to update these forward-looking statements prior to announcement of quarterly or annual results.