NetSol Technologies Inc. – already facing litigation over the slow rollout of its new vehicle-leasing software – reported sharply lower revenue and a net loss on Friday that it blamed on the launch of the platform.
The Calabasas company, which makes software that tracks vehicle leases for auto dealers and lenders, reported a net loss of $7.2 million (-79 cents a share) for the fiscal fourth quarter ended June 30, compared to net income of $3.1 million (35 cents) for the same quarter last year. Revenue fell 36 percent to $9.5 million.
The one analyst who follows the company expected a loss of 9 cents a share on revenue of $10.8 million, according to Thomson Financial Network.
The company launched NFS Ascent, its next-generation software program, in October, but sales took off slowly and the stock dropped, prompting shareholder lawsuits. Netsol has called the litigation “meritless” and announced on Aug. 27 a $16 million contract with a Chinese company for new program.
For the full fiscal year, the company lost $11.4 million (-$1.25) compared to income of $7.9 million (95 cents) for the previous fiscal year. Revenue declined 27 percent to $36.4 million.
Chief Executive Najeeb Ghauri pointed to the ramp-up of NFS Ascent as the reason for the lower numbers, but said the new fiscal year looks promising.
“While from a financial perspective, we clearly were in a transition period that severely impacted our financial results, particularly license revenue, our pipeline of potential new business as we proceed into the new year is strong, with great anticipation of closing deals and implementing NFS Ascent,” he said in a statement.
Shares closed down 6 cents, or nearly 2 percent, to $2.97 on the Nasdaq.