Shares in NetSol Technologies Inc. soared nearly 50 percent -- to a new 52-week high -- Wednesday after the company reported that it had swung to fourth-quarter profit.
NetSol reported fourth-quarter net income of $1.3 million (7 cents per share), a huge turnaround from a loss of $1.7 million (-11 cents) from the same period a year earlier. Including preferred and stock bonus dividends, profit was $877,092, the company said.
Revenue for the Calabasas-based provider of enterprise software and IT services to the financial services industry surged 84 percent to $8.6 million, thanks in part to the doubling of license and maintenance fees for the quarter, which were $2.9 million and $1.5 million respectively. Services also surged 57 percent to $4.2 million, the company said in a statement.
"Our record top line revenue growth was fueled by strong demand for our LeaseSoft and LeasePak solutions which experienced a 137 percent jump in license revenue year-over-year," NetSol's Chief Executive Najeeb Ghauri said.
For the year, NetSol's loss nearly tripled to $4.9 million (-27 cents) per share, which included non-cash financing charges totaling $5 million related to the company's acquisition of McCue Systems last summer.
Revenue for the year grew 57 percent to $29 million, the company said.
Shares in NetSol skyrocketed 49 percent, or 83 cents, to $2.52, in afternoon trading Wednesday on the Nasdaq.
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