NetSol Technologies, Inc. (NASDAQ: NTWK) reported total second quarter 2014 revenue was USD8.7m, compared with USD11.8m in the same period last fiscal year, reflecting, as expected, lower license sales during the transition to NetSol´s next-generation financing and leasing solution, NFS Ascent.
License revenue for the fiscal 2014 second quarter was USD456,000, versus USD3.5m in the same period last year. Maintenance revenue for the fiscal 2014 second quarter increased to USD2.9m from USD2.7m last year, reflecting the completion of certain projects. Service revenue remained consistent at USD5.4m, principally attributable to the first-generation NFS platform and additional service and change requests from customers. Service revenue in the second quarter of fiscal 2013 was USD5.6m.
“As we discussed in our outlook last quarter, results for the second fiscal quarter reflected the anticipated contraction in license revenue during the transition from our first-generation NFS product to the next-generation NFS Ascent platform, which we officially launched in the quarter,” said Najeeb Ghauri, CEO. “The launch of NFS Ascent is progressing, particularly in North America and Europe where we have developed a strong new business pipeline with potential new customers and with current customers that we support in other regions throughout the world.
Headquartered in Calabasas, Calif., NetSol Technologies (www.netsoltech.com) is a worldwide provider of global IT and enterprise application solutions that include credit and finance portfolio management systems, SAP consulting and services, custom development, systems integration and technical services for asset finance and leasing in the automotive, insurance, energy and technology markets.