Boston, MA 02/13/2014 (wallstreetpr) – NetSol Technologies Inc. (NASDAQ:NTWK) today reported its second quarter financial results, for the year 2014. The IT solution provider, with a global footprint, was caught on the back foot when it missed the revenue estimates as well as the EPS.
NetSol Technologies Inc. (NASDAQ:NTWK) reported revenue of $8.7million. While the revenue missed the estimate by $0.06 million, what was more significant was the drop in revenue of 26.3% over the previous year. In terms of value this was $8.7 million in the second quarter of 2014, while back in 2013 second quarter revenues had breached $11.7 million milestone as well.
The reason for the drastic difference in revenues for comparative quarters is largely due to the drop in license sales. The reason the IT solution provider sold lesser licenses was because it is currently in the transition stage.
NetSol Technologies Inc. (NASDAQ:NTWK) will soon move to its proprietary financial and leasing solution-NFS Ascent and will move in full force to achieve higher sales for following quarter. Additionally, Maintenance revenue increased in this quarter over previous year from $2.7 million to $2.9 million and as the figures indicate, this could be due to the completion of most projects and now moving into maintenance stage. The one segment which showed flat growth over previous was the service revenue, which remained at $5.4million. The reason for the same revenue earnings in this segment is attributed to the platform which uses latest technology such as Near Field Communications as well as other incidental services.
NetSol Technologies Inc. (NASDAQ:NTWK) will now migrate from the first-generation NFS platform of 2013 to the next generation of Near Field Communication available on the new Ascent Platform. The executives have since announced that Ascent would soon be launched before this quarter ended. Currently, NetSol Technologies Inc. (NASDAQ:NTWK) has seen the implementation of NFS Ascent in European as well as the North American continent, besides Europe.
