NETSOL Technologies, Inc. (NTWK) saw its loss widen to $1.77 million, or $0.17 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.41 million, or $0.04 a share. Revenue during the quarter grew 12.75 percent to $15 million from $13.31 million in the previous year period. Gross margin for the quarter expanded 116 basis points over the previous year period to 40.62 percent. Operating margin for the quarter stood at negative 8.21 percent as compared to a negative 0.43 percent for the previous year period.
Operating loss for the quarter was $1.23 million, compared with an operating loss of $0.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.18 million compared with $0.66 million in the prior year period. At the same time, adjusted EBITDA margin contracted 376 basis points in the quarter to 1.20 percent from 4.96 percent in the last year period.
"It was a solid start to the year, as we delivered strong growth in license and maintenance fees in what is typically our slowest quarter of the fiscal year" said Najeeb Ghauri, chief executive officer of NETSOL. "Demand for our solutions remains strong, and our flagship NFS Ascent product continues to gain momentum across all our markets. The strategic investments we are making to capitalize on the significant market opportunity in the United States and Europe are gaining traction, and will enable us to accelerate our growth in these markets over the long-term."
For fiscal year 2017, NETSOL Technologies, Inc. expects revenue to be in the range of $73 million to $75 million.
Operating cash flow remains negative
NETSOL Technologies, Inc. has spent $0.22 million cash to meet operating activities during the quarter as against cash outgo of $3.18 million in the last year period. The company has spent $0.96 million cash to meet investing activities during the quarter as against cash outgo of $0.45 million in the last year period. It has incurred net capital expenditure of $0.40 million on net basis during the quarter, down 9.53 percent or $0.04 million from year ago period.
Cash flow from financing activities was $0.24 million for the quarter, down 26.21 percent or $0.09 million, when compared with the last year period.
Cash and cash equivalents stood at $11.16 million as on Sep. 30, 2016, up 10.73 percent or $1.08 million from $10.08 million on Sep. 30, 2015.
Working capital increases sharply
NETSOL Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $25.61 million as at Sep. 30, 2016, up 48.58 percent or $8.37 million from $17.24 million on Sep. 30, 2015. Current ratio was at 2.67 as on Sep. 30, 2016, up from 2.26 on Sep. 30, 2015.
Days sales outstanding went down to 71 days for the quarter compared with 76 days for the same period last year.
Debt moves up
NETSOL Technologies, Inc. has witnessed an increase in total debt over the last one year. It stood at $4.95 million as on Sep. 30, 2016, up 8.23 percent or $0.38 million from $4.57 million on Sep. 30, 2015. Total debt was 5.26 percent of total assets as on Sep. 30, 2016, compared with 5.30 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.06 as on Sep. 30, 2016, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
