NetSol is in the verge of a major move upwards. Here are some highlights:
Locked up:
- 10 new orders last year on NFS with multiple licenses, services and maint.; including global deals with Mercedes in all Asian countries and SANY worldwide for all types of financing
- Largest backlog in company's history
- All of last years orders will be installing this year delivering revenue as the systems go live
- Chinese market leadership in leasing/finance software
- Expanded Asian hub in Thailand to service SE Asia
- Recommitted the $40-44m in revenue for FY11 which ends in 6 months, along with .15-.20
- Recurring revenue is at 40% of gross revenue
What's coming:
- Smart OCI search engine for SAP, beta installed in 20 customers and expected to have sold several last quarter
- Atheeb partnership
- Chinese expansion already has 40 NetSol employees deployed
- Thailand expansion
- Estimating they'll to 15 licenses this year, and can do 20-30 licenses in a year
- R2 is coming this year
- Finalizing the ownership expansion from 58% to 76% of the Pakistani subsidary which should increase eps another .03-.04
- Potential buyout - NTWK is very attractive to software developers looking for a Chinese beachhead or Chinese companies looking for IT partners to go global with them. Other potential acquirers - Chinese/European banks, SANY, or SAP
Other signs of success:
- 3 brothers bought 1.4m shares in the open market in 2010, including 279k at $1.50 per share on Dec 10, 2010
- The global deals in themselves suggest there is a whole new view of NetSol's capabilities
- Hiring is taking place in large numbers in Lahore to support business already sold
- Software development lab is certified in ISO 9001, 27001 and CMMI Level 5 (one of only 200 companies world wide)
Read more on NTWK at http://sharedduediligence.blogspot.com/
