NetSol Technologies Inc. beat Wall Street estimates of earnings but fell short on revenue in the fiscal third quarter.
The Calabasas software developer for the vehicle and equipment leasing markets reported on Wednesday net income of $1.5 million (9 cents a share) for the quarter ending March 31, compared with net income of $1.8 million (11 cents) in the same period a year earlier. Revenue decreased by 21 percent to $13.5 million.
One analyst expected earnings of -6 cents on revenue of $13.8 million, according to Thomson Financial Network.
Chief Executive Najeeb Ghauri said that the global slowdown due to the coronavirus pandemic impacted industries that NetSol serves.
“In direct response to this macroeconomic headwind, we’ve made strategic cost reductions in several key areas, which has allowed us to retain our entire workforce and should result in costs savings of $5 million on an annualized basis,” Ghauri said in a statement.
Shares of NetSol (NTWK) closed up 48 cents, or more than 18 percent, to $3.07 on the Nasdaq, on a day when that market fell by about 1.6 percent.
Velocity Financial Inc. missed on earnings but matched on revenue for its first quarter as a public company.
The Westlake Village alternative lender for small apartment and commercial properties reported on Wednesday adjusted net income of $5.8 million (29 cents a share) for the quarter ending March 31. Revenue decreased 12 percent to $15.7 million.
Velocity went public in January.
Analysts on average expected net income of 33 cents, while a single analyst anticipated revenue of $15.7 million, according to Thomson Financial Network.
Chief Executive Chris Farrar said the company’s first quarter reflects one-time costs associated with corporate debt paydown from IPO proceeds and an increase to its loan loss reserve due to the COVID-19 outbreak.
“While the last two months have presented near-term challenges for Velocity’s business, we remained profitable in the first quarter and have undertaken a number of steps to strengthen business continuity, improve the company’s liquidity position and prioritize the safety and productivity of our employees,” Farrar said in a statement.
Shares of Velocity (VEL) closed down 6 cents, or about 2 percent, to $2.90 on the New York Stock Exchange on a day when the Dow dropped by 2.2 percent and the Nasdaq fell by about 1.6 percent.