NetSol Posts Quarterly Profit

Calabasas-based NetSol Technologies, a provider of global IT and enterprise application solutions, today reported financial results for its fiscal 2012 second quarter ended December 31, 2011.

Sequential revenue growth was better than the company expected, with total second-quarter revenue increasing 38 percent to $8.6 million, from $6.2 million reported in the fiscal 2012 first quarter. Previously, the company had forecast sequential revenue growth of 15% to 20%.

“Our second-quarter results reflect a positive shift in the company’s financial performance following a challenging period,” said Najeeb Ghauri, chairman and CEO of NetSol. “After navigating through two tough quarters, we regained momentum by signing agreements across each of our business lines.”

On a sequential basis, license revenue rose to $2.0 million in the fiscal 2012 second quarter, from $1.1 million in the fiscal 2012 first quarter, reflecting the signing of new and previously delayed contracts. License revenue was $3.1 million in the second quarter of fiscal 2011.

Maintenance revenue increased slightly to $2.1 million in the second quarter of 2012, from $2.0 million in the previous first fiscal quarter, and $2.0 million for the same period last year.

Services revenue was $4.4 million, up sequentially from $3.1 million in the first quarter of fiscal 2012, and compared with $5.3 million for the second quarter of fiscal 2011.