Shares of NetSol Technologies Inc. (NASDAQ:NTWK) jumped Monday after the California-based company posted earnings that were bolstered by strong cost-cutting initiatives in the fiscal third quarter.
For the fiscal third quarter ended March 31, the software maker booked earnings of US$0.25 per share on revenue of US$17mln.
Investors sent the shares of NetSol 5.2% to US$5.05 after the company reported quarterly cost savings of US$1.1mln tied to cost-cutting initiatives linked to shearing salaries, travel, and hiring consultants.
“While advancing the deals within our expanded pipeline, we were still able to produce our second consecutive quarter of profitability thanks to the outperformance of our cost reduction initiatives,” said NETSOL co-founder and CEO Najeeb Ghauri.
The CEO forecast that NetSol would see some $7mln in savings in fiscal 2018 from ongoing cost-cutting efforts.
“These initiatives have not only optimized our cost structure, but also created more headroom to scale our business, which we believe can support a significant more amount of revenue without requiring meaningful incremental investment to support it,” added Ghauri.