NetSol Technologies, Inc., an enterprise software and business services provider with a footprint spanning the global marketplace, has operations in such diverse locations as Beijing, Bangkok, London, Lahore, Adelaide, Riyadh, San Pedro Sula and San Francisco. This broad physical base of operations enhances and affirms NetSol’s philosophy of seamless integration, best exemplified by their core BestShoring™ methodology, which is designed to eliminate the risks associated with outsourcing.

NetSol thrives on specialized solutions that are engineered to the client’s specific industry, from hospital/healthcare information management systems (HIMS) and SAP consulting and services, to credit and finance portfolio management systems, including systems integration and technical services. NetSol is a leading provider of SAP solutions and is committed to the idea that comprehensive project management is the key to delivering SAP projects in a time- and cost-effective manner.

The future looks bright for NetSol, with both Maxim Group and Rodman & Renshaw showing upbeat analysis of the Company’s fundamentals. NetSol Q1 FY 10 revenue was $7.6mm, showing 11% sequential growth from Q4 FY 2009 figures, driven largely by licensing fees (up 99% sequentially to $2.6mm), with revenue beating out expectations and showing quarter-to-quarter growth in what is typically a seasonally weak quarter.

With gross margins up 53.3%, and an estimate by Maxim Group that margins will continue to rise, NetSol is well positioned to achieve management’s intentions of growing revenue. In fact, the Company has already managed to sign 80% of last year’s revenue in the first fiscal quarter of this year, a very promising sign when considered alongside a historical compounded annual growth rate of 58% (up until 2008 when the global economic crisis began).

Recent awarding of a $2M software and IT services contract, which will utilize NetSol’s NFS suite, from one of China’s leading automotive finance companies is a strong indicator of the Company’s expansion into Asian markets. Due to the explosive growth potential of the Chinese automotive finance sector, NetSol has redoubled its efforts to expand its foothold in the market and support existing business in China, which has proven to be a real asset in terms of revenue generation.

NetSol’s Defense Division (NDD), a business unit of NetSol, recently announced plans to team with a top-five U.S. defense contractor to satisfy a request by the Pakistan Ministry of Defense. The contract bid is for upwards of 5 years and is estimated to be worth in excess of $350M. This contract will build on the existing relationship between NDD and the Pakistan Military, and will help to meet the growing demand for automation and modernization of Pakistan’s defense sector.

NetSol has also recently announced the planned expansion of a wholly-owned Chinese subsidiary from its Beijing operating center. In order to capitalize on its leading market position in the Chinese captive asset finance software space, and the booming Chinese economy (which has seen a decade of double-digit increases in disposable income), NetSol will attempt to grow its China-specific revenue to 25% of total revenue by FY 2010.

Having recently acquired its ninth major Chinese customer, NetSol is ready to put its plan for Chinese expansion into place with the new Chinese Delivery Center, and will offer additional services from its portfolio to the local market to supplement its NFS software solutions. With plans to complete the comprehensive compliance process and establish the subsidiary within the current fiscal year, NetSol aims to make even bigger waves in China while continuing to support its existing clients via the Beijing office.

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